Tracking the economy….

September 16, 2013

Vol. 7

Issue 5

A Wealth Incorporation Publication

Chaanakya

Christ University

Institute of Management

2

News

National ………………………………………….…..3

International ………………………………….……..5

7….....……………………………………… Rates and Graphs

Contemporary Articles

Economic Outlook (2013-14)…………...............…....9

Debate

10………………………….………..………..Economic Crisis

Stock Watch (IPCA Laboratories)...…..……...…...……..11

Investor’s Check (MSME IPO)…………………………...14

Scam (Farm Loan Waiver)…………..…..……………....18

Did You Know?...…………………………………………19

20…...…………...…....Financial Services Industry Analysis

23…..……………………………………………….Buzzword

Campus Buzz……………………………………………..24

Quiz……………………………………………………….27

Crossword………………………………………………..28

15..……………………………………………..Alumni Speak

17..………..………………………...(Crude Oil) Commodity

3

Srivishnu Garbham

II MBA I

NATIONAL NEWS

Bank license: Videocon-arm backs out; K. C. Land & Finance joins race

Videocon Group-company Value Industries Ltd has withdrawn from the race

for license to start new banks in the private sector. K. C. Land & Finance Ltd of

Chandigarh has been included in the list of 26 applicants for new bank licenses

in the private sector. In a statement, the RBI said: “Value Industries Ltd,

Aurangabad has withdrawn its application. Another applicant, K. C. Land &

Finance Ltd, Chandigarh, whose application was received at the Reserve Bank,

Central Office, Mumbai on July 1, 2013, but was inadvertently not included in

the list of applicants for new bank licenses in the private sector, is now being

included in the list.

Mahindra Finance, Korean firm ink MoU to finance Ssangyong vehicles

Woori Financials, an affiliate of the Woori Financial Group in Korea, has

signed a memorandum of understanding with Mahindra and Mahindra

Financial Services Ltd (Mahindra Finance), to evaluate and establish a joint

venture for financing Ssangyong Motor’s vehicles in Korea. Ssangyong Motor

is majority owned by Mahindra & Mahindra Ltd. Woori Financials and

Mahindra Finance, part of the $16.2-billion Mahindra Group, are to work

together and provide appropriate financing solutions to customers of

Ssangyong vehicles.

I-T probe: NSEL just a 'financing' platform

The income-tax probe into the settlement crisis at the National Spot Exchange

Ltd (NSEL) has revealed that the bourse was used as a platform only to raise

‘long-term finance’ by entities that were not interested in the underlying

commodities. Sources tell FE that the I-T department is of the view that money

was raised through the exchange platform to meet the working capital

requirement and some entities have also channelised the money towards

personal assets rather than business assets.

Finance ministry defers plan to infuse `14,000 crore in state-run banks

The finance ministry has deferred its plan to infuse `14,000 crore in state-run

banks till the next quarter as it wants to assess their needs after the second

quarter results before pumping cash to shore up their capital adequacy ratio

(CAR)

Muthoot Finance NCD issue opens for subscription

Muthoot Finance , the largest gold financing company in India in terms of loan

portfolio according to the IMaCS Industry Report, 2012 Update, has opened its

public issue of secured, redeemable, non-convertible debentures and unsecured,

redeemable, non-convertible debentures (NCDs) for subscription today. It aims

to raise upto Rs 150 crore through this issue, with an option to retain

4

oversubscription upto Rs 150 crore, aggregating to a total of upto `300 crore.

Muthoot Finance to set up 250 ATMs in next 3 months

Muthoot Finance, a leading gold financing company, plans to set up 250 white label ATMs in the next

three months. The company has identified locations in Delhi and Kerala to begin with, adding that the

total number of ATMs would go up to 1,000 by the end of September next year.

Aditya Birla Group, L&T Finance others hire former PSB executives to boost bank license

prospects

Banking license aspirants are turning to former bureaucrats and chiefs of

public sector banks to help them win licenses and build their proposed banks

from scratch. Aditya Birla Group, L&T Finance, BK Modi's Spice Group and

brokerage houses Religare and India Infoline have roped in half-a-dozen

retired officials as advisors to their boards.

LIC Housing Finance raises interest rates on home loans by 35 basis

points

LIC Housing Finance has raised interest rates on home loans by 35 basis points

but has spared its existing customers from a rate hike. The company has not

hiked its prime lending rates - the rate which is linked to floating rate that is

charged to customers- to protect the existing customers.

M&M Financial Services: Good monsoon to ease asset quality worries

A healthy monsoon may bode well for M&M Financial Services in the next

few quarters. At a time auto sales growth is muted, rural sales may be the key

driver thanks to a rise in rural income. M&M Financials may be one of the key

beneficiaries considering that a large number of its branches are in rural areas.

Amajor investor concern has been the rise in non-performing assets, or NPAs

RBI allows non-bank Islamic finance firm

The Reserve Bank of India (RBI) has allowed a firm in Kerala to operate as a

non-banking financial company (NBFC) that follows Islamic principles - a

small step towards developing sharia -compliant finance in the country. An

estimated 177 million Muslims in India, the largest Muslim minority

population in the world, are unable to use Islamic banks because laws covering

the sector require banking to be based on interest, which is forbidden in Islam.

Insurance bill to be taken up in winter session: Finance Minister

Finance Minister said the Insurance Laws (Amendment) Bill, which seeks to

raise the foreign equity cap in the sector to 49 per cent, will be taken up in the

winter session of Parliament. The government has agreed to a suggestion by

opposition parties to take up the insurance bill in the next session of

Parliament, after passing the pension bill in the current session.

5

Sailabala Nayak

II MBA I

US retail sales, wholesale inflation data point to slow growth

US consumer confidence ebbed early this month and retail sales rose just slightly in August

despite strong demand for automobiles and other big-ticket items, the latest indications

economic growth slowed in the third quarter. The lack of momentum in the economy was

underscored by other data on 13th Sep’13 showing an energy-led increase in wholesale prices

last month, but subdued underlying inflation pressures.

Obama delays Syria strike to avoid Congress row

US President Barack Obama postponed a decision on military strikes against Syria, sparing

him a political defeat at home and plunging the US into potentially protracted negotiations with

a global rival.After telling the nation 10 days ago he would ask Congress to authorise using

military force, Obama reversed course on 10th Sep’ night in a nationally televised address and

said he would pursue a proposal by Russia to have Syria surrender its stockpiles of chemical

arms to international authorities.

North Korea suspected of restarting Yongbyon nuclear reactor

North Korea appears to have restarted a reactor capable of producing weapons-grade

plutonium, according to analysis of satellite imagery and a US official. White steam can be

seen rising from a building near the hall housing steam turbines and electric generators at

Yongbyon nuclear complex in an image taken on 31 August, said the US-Korea Institute at

Johns Hopkins School of Advanced International Studies. Pyongyang announced it would

restart the reactor this spring, amid high tensions on the peninsula. Relations have since

improved, with North and South Korea saying on 11th Sep’13 that their joint industrial complex

at Kaesong, closed in April, would reopen on a trial basis on 9th Sep’13. The US-Korea

Institute said the gas-graphite reactor was capable of producing 6kg of weapons-grade

plutonium a year. It believes that the North already has 34-36kg, sufficient for around a dozen

weapons.

Japan mulls $50-bn stimulus to offset sales-tax hike

Japan is considering $50 billion in economic stimulus to cushion the blow of a national sales-

tax increase that is meant to rein in the government's massive debt. Prime Minister Shinzo Abe

is set to raise the tax to 8 per cent from 5 per cent in April, rejecting calls by some advisers to

delay or water down the fiscal tightening in order to keep the economic recovery on track. The

tax hike is the biggest effort in years by the world's third-largest economy to contain a public

debt that, at more than twice the nation's annual economic output, is the biggest in the world.

But Abe has said he must balance the long-term need to balance the budget against his top

priority of breaking Japan free from 15 years of deflation and tepid growth. To offset the drag

from the tax increase, Abe this week instructed his government to craft a stimulus package by

the end of the month.

Michael Dell, Silver Lake win shareholders' nod for buyout

Michael Dell clinched shareholders' approval on 12th Sep’13 for his $25 billion offer to buy

and take Dell Inc private, ending months of conflict with the company's largest investors and

removing the uncertainty surrounding the world's No. 3 PC maker. Shareholders cast their

votes at a special meeting on 12th Sep’13 morning in Austin, Texas. Based on preliminary

results, the buyout won their go-ahead and the deal is expected to close before the end of Dell's

fiscal third quarter. The company's pace of internal transformation should now quicken.

Sealing the deal should also assuage customers who have grown wary of the company's

direction during a very public battle that pit major Wall Street players Icahn, South-eastern

Asset Management and T Rowe Price against the CEO.

INTERNATIONAL NEWS

6

China output, investment reinforce view economy has steadied

China's factory output grew at its fastest pace in 17 months and investment and consumption beat market forecasts, increasing

confidence among investors that the world's second-largest economy has halted a slide and is building some momentum. The

recovery path is set to be bumpy, especially as the U.S. Federal Reserve could start tapering its stimulus as early as next week,

although analysts say China is better positioned than other emerging economies to cope with any resulting capital outflows.

Japan's Q2 growth beats estimate builds case for hike in sales tax

Japan's economy grew faster than previously estimated in the second quarter, aiding Prime Minister Shinzo Abe's reflation

campaign as he considers whether the nation can withstand a sales-tax increase.Gross domestic product expanded an

annualised 3.8 per cent from the first quarter, higher than an initial estimate of 2.6 per cent, reflecting stronger private capital

investment, the Cabinet Office said in Tokyo on 9th Sep’13. The median forecast of 23 economists surveyed by Bloomberg

News was for a 3.9-per cent increase. The economy grew 4.1 per cent in the first quarter.

Japanese stocks jumped and the yen weakened after Tokyo won a bid to host the 2020 Olympics, helping Abe's effort to revive

the world's third biggest economy

Employment Index in U.S. Increases to More Than Five-Year High

A measure of job prospects in the U.S. advanced in August to a more than five-year high, a

sign the labor market is improving. The Conference Board’s Employment Trends Index

increased 0.7 percent to 113.54, the highest since April 2008, the New York-based private

research group said 9th Sep’13. The prior month’s reading was revised up to 112.8 from 112.2.

The measure is up 4.5 percent from a year earlier.

WTO cuts 2013 world trade forecast to 2.5 percent

World trade is expected to grow by 2.5 percent this year and 4.5 percent in 2014, the World

Trade Organisation's new chief, Roberto Azevedo, said on 9th Sep'13 revising down previous

estimates of 3.3 percent and 5 percent.As per him it is because the European economy had not

recovered in the second quarter of this year as expected, but he gave no further details.

China Aug exports beat forecasts, point to stabilisation

China's exports rose more than expected in August, boosted by improving demand for the

country's goods in major markets and adding to evidence that the world's second-largest

economy may have avoided a sharp slowdown. As per the Customs Administration on 8th

Sep’13 that exports rose 7.2 percent in August from a year earlier and imports rose 7 percent,

leaving the country with a trade surplus of $28.6 billion for the month.

Greek premier says economic pain will ease next year

Greece's economic pain will ease in 2014 as it exits a recession that will be less acute than

forecast this year, helping the country meet its bailout targets, Prime Minister Antonis

Samaras said on 7th Sep’13. The country is struggling through a six-year slump that has

shrunk its economy by more than a quarter, left more than one in four of the workforce

jobless, pushed up poverty levels and shuttered thousands of businesses. The European Union

and International Monetary Fund, which have bailed the country out with two multi-billion

euro rescue packages, project gross domestic product will shrink 4.2 percent this year after

contracting 6.4 percent in 2012.

7

Rate Repo 7.25per cent

Reverse Repo 6.25per cent

Call Rate 5.00 per cent –35.00per cent

Inflation +5.79per cent for August 2013

Forex Reserve $275.491 Billion as on 30th August 2013

91day T-Bill 11.2573per cent

IIP 2.2per cent (increase) for July 2013

6.90 GS 2019 8.0907per cent

Graph

Gaurav Agarwal

II MBA M

RATES AND GRAPH

59

61

63

65

67

69

Rs/$

Rs/$

28000

29000

30000

31000

32000

33000

Gold(per 10 gram) Rs.

Gold(per 10 gram)

8

GRAPH

1500000

3500000

5500000

7500000

9500000

11500000

13500000

15500000

17500000

19500000

21500000

5,200.00

5,300.00

5,400.00

5,500.00

5,600.00

5,700.00

5,800.00

5,900.00future rates

open interest

108

110

112

114

116

Oil(per bbl) $

Oil(per bbl) $

5200

5300

5400

5500

5600

5700

5800

17,500.00

18,000.00

18,500.00

19,000.00

19,500.00

20,000.00

20,500.00

12-Aug 16-Aug 20-Aug 24-Aug 28-Aug 01-Sep 05-Sep 09-Sep

sensex nifty

9

Lowering of projections is becoming frequent these days as the economy is going through

rough patches, a situation which is not at all investor friendly and lacks a sustained momentum.

Prime Ministers Economic Advisory Council (PMEAC) has come up with the economic

outlook for the financial year 2013-2014, which is not so promising and is concerned about the

chances of a rapid recovery as in 2009 and 2010 after the global crisis in 2008. PMEAC is

looking at a rate of 5.3 per cent growth against 6.4 percent which was indicated in its April

2013 review. Weak business confidence, disappointing corporate results, high current account

deficit and high domestic inflation are the major factors that have contributed for the

downward slope of growth rate.

Two major reasons have been pointed out by PMEAC for lower estimate. One is the

disruptions related to currency which marked its beginning in the month of June and is still

there in the picture. The prevailing tension of currency is affecting the momentum, which is

required for a recovery. Because of this, corporates seem reluctant to come up with policies

that can stimulate the business and economy. Along with these, balance sheet numbers of

banking, financial institutions and others were getting tampered with the currency fluctuations

which are adding oil to the fire. Second reason is in line with the declining profitability and

margins of corporates. The March 2013 ending quarter results show stress on the post-tax

profitability of corporates. Under these circumstances recovery will become a time consuming

process and can’t expect to happen within a short span of time, which pulled down the growth

estimation for 2013-2014.

Looking in to the sector wise projections, industrial sector growth is projected at 2.8 per cent in

2013-2014 against 2.1 percent of the previous year. Because of the sluggishness in trade,

hotels, transportation and communication, the service sector is projected to grow at a lower

figure of 5.1 per cent in the current fiscal; whereas it was 6.4 per cent in 2012-2013. The

mining and quarrying sector is also laming owing to the depletion of natural gas output and the

lower production than expected from the domestic oil fields and regulatory issues. Even though

manufacturing sector is expected to get better in the forthcoming quarters, it has already

showed negative growth in the first quarter of the year mainly because of the negative growth

in consumer durables. Non-farm sector growth is expected to be at 5.4 percent when

compared to 5.5 per cent of the last year. In the present scenario, economy is mainly pushed by

the farming sector on account of the good growth rate of farming income and very good

monsoon.

Because of the slow growth, prevailing tension of currency and the inefficacious past; PMEAC

is having a conservative view on the growth outlook for 2013-2014. At this point, it is

necessary to contain the Current Account Deficit and to improve the capital inflows since both

of these has got great relevance in retaining the economy as an investor friendly zone. Along

with the measures that have already been taken to stimulate growth; as a developing economy,

India has to facilitate improvement in manufacturing capabilities with supply of skilled labor,

and more transparent as well as predictable tax policies. The time lag in converting a project in

pipeline to a completed project is also a reason for concern and should be minimized to the

least possible. It has to be noted that all these should not be adding burden to an economic

situation which is not stabilized. Thus the expenditure and various subsidies associated with all

stimulating activities should be well positioned and effective enough to make the fiscal

consolidation growth friendly.

References:

http://eac.gov.in/reports/EconomicOutlook201314.pdf

Eldho Poulose

II MBA K

Economic Outlook 2013-2014: Lowered Estimation in a slow footed environment

10

Sabahat Bashir

II MBA I

Akansha Bansal

II MBA L

The recent economic crisis has made us wonder whether or not we are heading

towards another 1991 near bankruptcy situation or is it going to be worse for

India. A disappointing Current Account Deficit (CAD), alarmingly high

inflation, depreciating currency etc. make up for some of the nation’s primary

worries.

A theory called “Prospect Theory” can be used to base our anxiety about the

current economic scenario, where fear of anticipated loss is more than the

pleasure of an expected gain (loss aversion). In 1991, India was a small

economy with little to lose; but in 2013, India has largely evolved into a richer

nation. Back then, it did not matter to the common man whether the country

had enough forex reserves to back up the economy but now it does. Also in

1991, the world was at a much better stand to save India, but now the world

economy is in equal trouble. A weaker government just adds weight to our

maladies. There are too many cooks spoiling the broth and blame games being

played in the country. With no one to take the responsibility of problems and

reforms, the country’s economy is not only suffering, but also deteriorating.

This indicates that sadly a situation, if not similar, but worse than 1991 may be

embracing our economy.

The psychology of depending on foreigners to address our internal dearth is

suppressing our domestic private initiatives too. History is often believed to

repeat itself in different forms and faces.

However, some might argue that the melancholic and gloomy economic

situation is just not analysed properly. The economic crisis of 1991 may not be

relevant to what India is facing now in 2013. Unlike 1991, India now has a

good deal of experience with exchange rate flexibility and access to private

capital inflows. Our forex reserves are sufficient enough to finance nearly

seven months of imports. Moreover Indian Inc. majorly defines the current

crisis as a lack of political will in implementing bold economic reforms, poor

infrastructure, unfriendly business regulations etc. Some also blame it on the

external global factors like SBI Chairman Mr. Pratip Chaudhuri said, “The

economy is facing problems mainly due to the global economic situation and

liquidity squeeze in the domestic markets”. The current economic slowdown

could also be attributed to declining demand from consumption, investments

and exports.

So whether we are heading towards 1991 or going beyond that is a matter of

grave concern and needs to be dealt with in a way which is most beneficial for

not only survival but also sustainability of our economy.

References:

Article “2013 is not 1991: but it feels much worse and matters more” from

Firstpost.com

http://articles.economictimes.indiatimes.com/2013-04-03/

news/38248511_1_cad-current-account-deficit-india

DEBATE:: ARE WE HEADING TOWARDS ANOTHER ECONOMIC CRISIS?

11

Ankit Dewani II MBA K

SriKrishna II MBA M

Company Profile:

IPCA is a fully-integrated Indian pharmaceutical company manufacturing over

350 formulations and 80 APIs for various therapeutic segments. The company

was incorporated in 1949. For more than 60 years, IPCA has been partnering

healthcare globally in over 110 countries and in markets as diverse as Africa,

Asia, Australia, Europe and the US.

This is one of the world's largest manufacturers and suppliers of over a dozen

APIs. These are produced right from the basic stage at manufacturing facilities

endorsed by the world's most discerning drug regulatory authorities like US-

FDA, UK-MHRA, EDQM-Europe, WHO-Geneva and many more. IPCA is a

therapy leader in India for anti-malarial with a market-share of over 34% with

a fast expanding presence in the international market as well. The company

also leads in DMARDs (Disease Modifying Anti-Rheumatic Drugs) treatment

for rheumatoid arthritis. The Company has leading brands in 5 therapeutic are-

as, with 4 of its branded formulations being ranked among the Top-300 Indian

brands by ORG-IMS.

Shareholding pattern:

Company financials:

Income statement:

STOCK WATCH:: Ipca Laboratories

Particulars 2008-09 2009-10 2010-11 2011-12 2012-13

Domestic Income * 595.18 759.42 864.43 940.32 1081.00

Exports Income 680.39 806.08 1025.18 1401.97 1716.08

Total Income * 1,275.57 1565.50 1889.61 2342.98 2797.08

Earnings Before Interest,

Depreciation & Tax 270.01 344.65 384.24 526.40 639.95

Profit Before Tax 124.65 271.73 343.70 368.94 461.37

Net Profit After Tax 91.22 209.19 255.37 280.17 331.39

Share Capital 24.99 25.04 25.14 25.23 25.24

Reserves and Surplus 613.52 849.82 1028.72 1237.04 1544.61

Net Worth 638.51 874.86 1053.86 1262.27 1569.85

Net Block 579.72 674.75 792.57 1007.33 1204.50

Dividend (%) 110% 140% 160% 160% 200%

Earnings Per Share (

.) 36.33 16.75 20.36 22.23 26.27

Book Value Per Share

(Rs.) 255.51 69.86 83.84 100.06 124.40

12

Key ratios:

Particulars 2012-13 2011-12 2010-11 2009-10 2008-09

Operating Ratios (in Percent)

Export Turnover / Net Income 61.76 60.17 54.50 51.49 53.34

Domestic Turnover / Net Income 36.81 38.54 44.69 47.24 45.86

Raw Material Cost / Net Income 39.27 38.94 40.80 40.94 39.06

Interest / Net Income 1.13 1.69 1.51 2.07 2.38

Depreciation / Net Income 3.02 2.80 2.95 2.96 3.08

Tax / Net Income 4.68 4.19 3.97 3.93 2.20

R&D Spending / Net Turnover (Excldg. Income

from operations & Other Income) 3.68 3.39 3.82 3.71 3.97

Profitability (In Percent) to Net Income

PBIDT 22.36 22.04 19.97 21.20 20.99

PBT 16.61 15.84 18.27 17.36 9.77

PAT (before exceptional items) 11.93 12.03 14.11 13.36 7.95

PAT (after exceptional items) 11.93 12.03 13.58 13.36 7.15

Business Characteristics

Return on Capital Employed % (PBIT/Capital

Employed) 23.84 24.22 26.56 24.82 16.35

Long Term Debt Equity Ratio (Long Term Bor-

rowings / NetWorth) 0.23 0.26 0.18 0.25 0.36

Debtors Turnover Ratio (Days) (Debtors / Turno-

ver)x365 66 72 91 93 99

Creditors Turnover Ratio (Days) (Creditors / Pur-

chases)x365 61 59 55 60 62

Inventory Turnover Ratio (Days) (Inventory /

Turnover)x365 98 105 90 88 86

Current Ratio (Current Assets / Current Liabili-

ties) 2.21 1.89 1.79 2.46 2.37

Growth (in percent)

Total Income 19.4 24.0 20.7 22.7 20.4

Domestic Sales 13.90 6.8 13.7 26.4 15.6

Export Sales 22.40 36.8 27.2 18.5 26.9

PBIDT 21.0 36.7 13.2 23.9 45.8

PBT 25.10 7.3 26.5 118.0 -29.5

PAT (before exceptional items) 18.3 5.6 26.8 106.3 -28.1

PAT (after exceptional items) 18.3 9.7 22.1 129.3 -35.4

Per Share Data (in .)

Earnings (EPS) (PAT / Weighted Avg. No. of

Shares) 26.27 22.23 20.36 16.75 36.33

Book Value (Net Worth / No of Shares) 124.40 100.06 83.84 69.86 255.51

Dividend (%) 200 160 160 140 110

13

Recent financial news about the company:

The Company has posted a net profit of `717.70 million for the quarter ended June 30, 2013 whereas

the same was at `429.80 million for the quarter ended June 30, 2012.

Export Income at `4965.40 millions in Q1 FY14 as against `3667.30 millions in Q1 FY13, registered

a growth of 35per cent.

Revenue for the quarter rose 26.98per cent to `8055.60 million from `6344.00 million, when com-

pared with the prior year period.

Active Pharmaceutical Ingredients revenue rose by 17per cent to `2122.20 million in Q1 FY14 as

against `1815.60 million in Q1 FY13.

The Company has signed agreements with marketing partners for sale/distribution of generic

formulations on a profit sharing arrangement in the US market.

The Company’s wholly owned subsidiary in Mexico is in the process of filing the formulation

dossiers for registration in the country. The Company is currently marketing its

branded and generic formulations in Venezuela, Columbia and Peru in the

Latin American market with a few product registrations. Several more

formulation dossiers are in the process of being registered / submitted for

registration in all these markets of Latin America.

Performance chart:

CMP:689

TARGET:720

DURATION: 2 MONTHS

14

Abhishek Aggarwal

II MBA I

Yet again two more MSME IPO’s enter the BSE IPO market. From these two issues the tally

rises over 15 since January 2013. The details of the two issues are:

ACE TOURS WORLDWIDE: It is a Gujarat based Travel Company providing the one stop

shop for all the travelling solutions to their clients (including forex, ticketing, visa, tour

packages etc.) Recently this company was in the news for the wrong reasons by not complying

with the statutory requirements of Tax payments (service, professional & Income). The

company wants to use the proceeds towards brand building.

R J BIO-TECH: It is an Aurangabad based Agri-biotechnology company which focuses on

crop genetics and hybrids. As per the financial numbers, the company’s revenue increased

from Rs. 16.09 Crores to Rs. 19.85 Crores YoY from 2012 to 2013. At the same time their net

profits nearly tripled from Rs.54 Lakhs to Rs. 1.3 Crores show better margins for the company.

The funds received by the company will be put to use towards the working capital

management. One should also know that any of the hybrid seeds produced by the company are

not registered which might increase the risk appetite in future.

Most of the IPO’s in this segment are not rated by any credit rating agencies and the recently

introduced Safety Net feature is also not applicable in these issues. So, there exists a high risk

with such issues, as we all know what happened with One Source Tech Media. Nevertheless

the quantum of issue that are coming in this segment are pretty high and investors can make a

lot of money if they value the company smartly. The upcoming issues include MITCON on

EMERGE (NSE MSME exchange), Shemaroo, Snowman Logistics to name a few.

References:

Latest News. Moneycontrol - IPO. Retrieved September 11, 2013, from http://

moneycontrol.com/ipo/

INVESTOR CHECK :: MSME IPO’s: REIGN RULERZ

Issue Open Date 09-September-13

Issue Close Date 12-September-13

Issue Size 50 Lakh equity shares (Rs. 8 Crores)

Proportion of offer to Public Full

Issue Price `16 per share

Face Value `10 per share

Minimum Investment Amount ` 1,28,000 (8,000 shares)

Bid Method Book Build

Registrar Satellite Corporate Services Pvt. Ltd.

BRLM Corporate Strategic Allianz Ltd.

Issue Open Date 10-September-13

Issue Close Date 12-September-13

Issue Size 25.02 Lakh equity shares (` 5.004 Crores)

Proportion of offer to Public 23.76 Lakh equity shares (94.7%)

Issue Price `20 per share

Face Value `10 per share

Minimum Investment Amount `1,20,000 (60,000 shares)

Bid Method Book Build

Registrar Bigshare Services Pvt. Ltd.

BRLM Sarthi Capital Advisors Pvt. Ltd.

15

Mithil Kumar A

II MBA L

Name: Pawan Bhutra

Company name, Designation held:

ING Vysya Bank as a Branch Manager

Put some light on your Company, the job profile and the role you play in your

organization?

Currently I am associated as Branch Manager with ING (International

Netherlands Group) Vysya Bank. It is a Bangalore based private bank with

retail, wholesale and private banking platforms; formed from the 2002

acquisition of an equity stake in Indian Vysya Bank by the Dutch ING group.

The Bank has all together 527 branches functioning across India.

As a Branch Manager, I take care of the overall operation and business

activities of the Branch. I need to lead the operation, sales and wealth managers

team and get the higher income numbers on the Branch P&L.

What encouraged you to choose this industry and join the particular company?

I have started my Banking career as Relationship Manager – Wealth. The

reason

Of mine to enter into Retail Banking is that, Firstly retail banking is consistent

and long term growth engine. Secondly the performance of retail banking is

based on the business model that focuses on the clients; by understanding their

basic needs and requirements. Lastly retail banking notably fosters the

diversity and development of its teams.

The reason of mine joining ING Vysya Bank was as it blends a competitive

global work culture and nurturing Indian Values.

How is your experience in the company as well as industry so far?

I am associated with ING Vysya Bank since October 2010 and with retail

banking since May 2007.From then till now my experience with the company

and in the banking industry is extremely good. .

How is professional world different from the life in MBA?

The Professional world is completely different from MBA life. The MBA

helps in creating the good and strong foundation; as it gives knowledge

through various management subjects and case studies.

In the professional world, we need to keep the same knowledge at the back of

our mind and solve issues and problems in a rational way. It’s not always

necessary that MBA has all the answers to the professional world’s issues and

problems.

Are there any additional courses / certifications that you recommend in this

field?

Till my knowledge there is no courses available which teaches or gives you a

knowledge about complete retail banking. In regard to additional certifications

it all depends in which department of retail banking you are working. For

example if someone who wants to scale up into wealth management and

private banking will definitely suggest to go for CFA (US).

ALUMNI SPEAK:: Pawan Bhutra

16

Who is your role model and how he/ she inspires you?

I don’t have any particular person as my role model. The environment in retail banking is very dynamic

in nature and there is no one set of formula to achieve success in this industry. Every day you ended up in

meeting different people and learn new different things from them.

What are you doing to ensure that you continue to grow and develop in industry?

I always keep myself updated with the everyday changes that occurs in the Indian and global financial

markets and products and simultaneously also with the policy changes which are made by regulatory

bodies like RBI, SEBI and IRDA.

What are the characteristics you believe one should possess to join this company?

Quick Learner.

Good communication skills.

Adaptability.

Creativity & resourcefulness.

“Can do!” attitude.

What are the opportunities for us (juniors) in your company?

There are many opportunities but to name few of them are:-

Relationship Manager – Wealth; Sales Manager – Liability Products; Product

manager; Relationship Manager – Business banking or Mortgages.

Will you be willing to come and share more about the industry and the

company and your experience with us in an alumni interface?

It will be my pleasure coming there and meeting the future of corporate world.

What are your short-term, mid-term and long-term plans, respectively, for

future?

Looking forward to become Regional Head and then Zonal Head

In long term I would like to start a financial advisory firm .

A message for Christites?

Enjoy your MBA life and grab as much knowledge as you can; as you never

know which part of knowledge will be helping you in future. Lastly, whatever

you do; do it with full passion and energy.

ALL THE BEST!!!

17

Vattam Bhargav

II MBA V

Crude oil is the commodity on which majority of this world functions. It has

become a key factor in the world’s economic and political environment. Crude

oil technically known as petroleum is like the backbone of our modern society.

Middle eastern OPEC nations have huge amount of wealth only due to this

commodity.

Major uses of crude oil in India are:

Crude oil is nearly one third of what India as a country imports every year.

High consumption of crude oil is due to its various applications in energy

generation and consumption (35per cent of the world’s energy consumption),

which is the lifeline for the functioning of the world.

In MCX (Multi Commodity Exchange) Crude Oil is measured in units of

barrels, quoted in units of 1 barrel and sold in lots of 100 barrels.

News about Crude Oil:

Crude oil’s price majorly depends on the output of the OPEC countries.

Whenever the OPEC nations faced any difficulty in terms of war or any

internal crisis, the price of oil always went north provided there were no

stockpiles with the consuming countries. The decision regarding USA

attacking Syria is very critical for the price of oil. As recent developments of a

weapon surrender by Syria and USA getting mixed responses from its allies,

and oil already hitting its two-year high can lead to a drastic fall in the price of

oil if there is no war on Syria. There are more chances of Syria not being

attacked. USA recently announcing about its abundant oil stocks with it can

increase supply in the market leading to the fall in oil prices.

Current performance of Crude oil in the Commodity Market:

Crude oil has already hit its two-year high. Crude oil is currently (10th

September 2013) being traded with a spot price of `7,061/barrel.

The current Spot prices in MCX for Crude oil futures are (10th September,

2013):

`7,061 / BBL for 19th September 2013.

`7,067 /BBL for 21st October 2013.

`7,041/ BBL for 19th November 2013.

Investors are advised to take a short position on oil as of now; if there is no war

on Syria then oil price will drop down.

References:

http://www.commodityonline.com/commodity-market/commodity-prices/

crude%20oil

COMMODITY:: CRUDE OIL

18

Akanksha Jha

II MBA J

The farm loan waiver scheme launched by UPA government, just before the

2009 general election, has joined the growing list of scandals. In March2013

Comptroller and Auditor General (CAG) in its report said that there are serious

discrepancies in the implementation of the `52,000 crore farm loan waiver

schemes from the UPA government. The report says that the 20,216 out of the

total 90,576 cases test checked in audit, had lapses and errors. This was the

22.23 percentage of the total.

9,334 accounts were test checked across nine states, in which 1,257 accounts

were found eligible for the scheme but were not considered by the lending

institutions while preparing the list of eligible farmers.

In 943 other cases, that is 8.5 percent of the total, the beneficiary was not

eligible either for wavier or for the debt relief. Claim amounting `20.5 crores

were for ineligible purposes or were pertaining to periods not eligible for

scheme benefits. Many farmers had taken loan for non agricultural purpose and

many of them were not eligible for the wavier were also given the loan under

this scheme.

The report also says that the micro finance institutions were given undue

benefits under the scheme, violating the guidelines for the debt wavier. Banks

also enjoyed the benefit of claiming the charges like penal interest, legal

charges, and miscellaneous charges from government. But under the scheme

these charges were to be borne by the banks themselves.

The report notes that in many cases there were evidences for tampering,

overwriting or alteration of the records. This scam was said to be the prime

reason for the re-elections of the UPA in 2009.

SCAM:: FARM LOAN WAIVER

19

Tina Patricia D’Souza

II MBA N

Did you know? The Concept of Black- Scholes Formula

INTRODUCTION

The Black Scholes formula is a mathematical model designed to estimate the

prices of the options over time. The key funda is to buy and sell the options and

the securities in just the right way and consequently eliminate the risk. This

kind of hedging is known as the delta hedging and forms the platform on the

basis of which more complicated hedging procedures are performed by

Investment Bankers and Hedge Funds. The formula also suggests that there is a

unique price and that it can be obtained by the Black Scholes Formula.

The Black–Scholes was first published by Fischer Black and Myron Scholes in

their 1973 paper, "The Pricing of Options and Corporate Liabilities", published

in the Journal of Political Economy. They derived a stochastic partial

differential equation, now called the Black–Scholes equation. Robert C.

Merton was the first to publish a paper expanding the mathematical

understanding of the options pricing model, and coined the term Black–Scholes

options pricing model. Merton and Scholes received the 1997 Nobel Prize in

Economics.

ASSUMPTIONS

The Black–Scholes model of the market for a particular stock makes the

following explicit assumptions:

There is no arbitrage opportunity (i.e., there is no way to make a riskless

profit).

It is possible to borrow and lend cash at a known constant risk-free

interest rate.

It is possible to buy and sell any amount, even fractional; of stock (this

includes short selling).

The above transactions do not incur any fees or costs (i.e., frictionless

market).

The stock price follows a geometric Brownian motion with constant drift

and volatility.

The underlying security does not pay a dividend.

From these assumptions, Black and Scholes showed that “it is possible to

create a hedged position, consisting of a long position in the stock and a short

position in the option, whose value will not depend on the price of the stock.”

Reference:

1. Investopedia - Educating the world about finance. Options Pricing: Black-

Scholes Model | Investopedia. Retrieved September 10, 2013, from http://

www.investopedia.com/university/options-pricing/black-scholes-model.asp

2. Wikipedia, the free encyclopedia. Blackâ Scholes - Wikipedia, the free ency-

clopedia. Retrieved September 10, 2013, from http://en.wikipedia.org/wiki/

Black%E2%80%93Scholes

20

Ankit Dewani

Sabahat Bashir

Sri Vishnu

Tina Patricia D’Souza

Abhishek Aggarwal

INTRODUCTION & REGULATORY ENVIRONMENT

A career in corporate finance means one would work for a company to help it find

money to run the business, grow the business, make acquisitions, plan for its financial

future and manage any cash on hand. One might work for a large multinational

company or a smaller player with high growth prospects. Responsibility can come fast

and the problem-solving skills will be required to work quickly in corporate finance

jobs.

In corporate finance you could be dealing with finance providers, lawyers, researchers

and other key professionals so the following responsibilities arise:

supporting new business development proposals

drafting proposal and tender documents

preparing financial projections and strategic business plans

coordinating teams of professionals, such as lawyers

providing advice to clients for improvements to systems and controls

Corporate financial analysts are to business what a navigator is to a large ship: They

chart a company's financial course based on goals prescribed by management and use

a variety of tools and techniques to keep the company on track.

Corporate finance positions generally pay very well and are quite stable, with

predictable demands set around calendar reporting times: weekly, monthly, quarterly

and annually. To begin your journey on the road to becoming a corporate financial

analyst, find finance bachelor's, MBA or master's degree programs.

FINANCIAL SERVICES INDUSTRY ANALYSIS:: CORPORATE FINANCE

Entry Level Mid Level Senior Level

Types of Roles

Financial analyst, asso-

ciate support analyst,

business analyst

Cash manager, senior

financial analyst,

strategic planner

Director of finance,

controller, CFO,

treasurer, CEO

Getting There

Bachelor's degree in

finance or economics

Strong communication

and analytical skills

Technology skills and

experience (specifically

in Microsoft Excel and

Microsoft SQL Server)

All entry-level

requirements

Demonstrated high-

quality performance and

attention to detail

An MBA with a focus

in finance or economics

All mid-level require-

ments

Track record of

excellence and

leadership in the field

Solid management skills

Knowledge of the

industry

Description

Document financial

transactions

Prepare financial

reports

Perform trend analysis

Recognize problems in

data

Create pricing strategies

Create/monitor compa-

ny budgets

Explain financial data to

company managers

Write company finan-

cial policies

Hire and supervise jun-

ior analysts

Monitor company cash

flow

Build financial forecasts

Create financial plans

Direct investments

Ensure company

compliance with

generally accepted

accounting principles

(GAAP)

Lead teams of people

21

GLOBAL TRENDS

Consumer spending is starting to rise, and shareholders will begin demanding greater return on their equity

via corporate growth. In essence, that means they will press companies to put their capital into areas that can

sustain a greater return on their shares, such as investments in plant and equipment, research and

development, and hiring.

If companies want to grow, they may finally have to start hiring talented help.

After years of hype concerning the coming convergence of U.S. generally accepted accounting principles and

international financial reporting standards, the Securities and Exchange Commission has made it clear that

the convergence agenda is on a slow boat rather than a fast track.

The movement should gain momentum this year if the long-anticipated convergence of two key proposals —

on revenue recognition and lease accounting — is finalized as expected in the first half of the year

Private-capital providers and alternative sources of lending will be supplying credit to small and midsize

companies, as the lending capacity of the banks has been reduced considerably due to the provisions of the

Basel III.

IMPORTANT SUCCESS FACTORS

Success in the field of Corporate Finance can be defined in terms of several

attributes like:

Flexibility: It is an important and essential prerequisite to be a successful

player in the field of Corporate Finance.

Result oriented: Being result oriented is another important attribute that

defines success in Corporate Finance

Persistent and Focused: An organization has to e focused on its goals and

persistent in its actions to be a success in Corporate Finance

Problem solving and Resourceful

SCOPE OF MBA FINANCE

GENERAL ACCOUNTING

General accountants are responsible for producing all of the financial records a cor-

poration uses to track its progress internally and to meet government regulations.

INTERNAL AUDITOR

Most large companies have an internal audit group that regularly visits individual

company branches and checks the company's accounting systems. The internal audit

group reviews the quality of the data, making sure it's both accurate and complete.

They also evaluate whether the corporate accounting procedures are effective and

universally followed.

DIVISIONAL FINANCIAL SERVICES

In this area, responsibilities include everything from analyzing new business opportu-

nities to restructuring a business or developing a capital spending program.

TAX

Activities in this area involve administering taxes (i.e., paying taxes on time-or

finding loopholes to avoid paying them) and determining how to decrease the

company's tax burden.

TREASURER

The treasury department is responsible for all of a company's financing and investing

activities. This department works with investment bankers who help the corporation

raise capital with stock or bond sales or expand through mergers and acquisitions.

CASH MANAGEMENT

The cash management group makes sure the company has enough cash on hand to

meet its daily needs.

22

CORPORATE DEVELOPMENT AND STRATEGIC PLANNING

Finance experts in corporate development study acquisition targets, investment options, and licensing deals.

KEY SKILLS REQUIRED:

Mathematical, computer, analytical, and problem-solving skills are essential qualifications for financial

analysts and personal financial advisors.

Good communication skills also are necessary, because these workers must present complex financial

concepts and strategies in easy-to-understand language to clients and other professionals.

Self-confidence, maturity, and the ability to work independently are important as well.

Financial analysts must be detail oriented, motivated to seek out obscure information, and familiar with the

workings of the economy, tax laws, and money markets.

Strong interpersonal skills and sales ability are crucial to the success of both financial analysts and personal

financial advisors.

COURSES AND CERTIFICATIONS

NAME OF THE CER- DESCRIPTION FEES REFERENCE

1. Certificate in Corpo-

rate Finance and Fund-

ing (CertCFF)

CertCFF will provide you with

an in-depth understanding in

the principles and techniques of

corporate financial manage-

ment. The course is highly

practical and addresses the eve-

ryday problems in corporate

financial management and the

capital markets. CertCFF com-

prises an optional stage three

module of the AMCT Diploma

in Treasury but is also available

as an individual certificate.

Depends

on module

http://www.treasurers.org/

qualifications/certcff

2. Certificate in Corpo-

rate Finance

The Certificate in Corporate

Finance is an important first

step in developing the essential

basic knowledge required for

being involved in corporate

finance. This certificate meets

the FSA’s mandatory exam

requirements for those advising

on investments in the course of

corporate finance business

£75.00 http://www.icaew.com/en/

qualifications-and-programmes/

cfqualification/study-route/

certificate-in-corporate-finance

3. Diploma in cor-

porate finance

This diploma is suitable for

ICAEW Chartered Accountants

or Certificate in Corporate Fi-

nance holders. It has two pa-

pers paper 1: corporate finance:

Techniques and Theory

paper 2: corporate finance:

paper 1 – £300

paper 2 – £350

http://www.schoolofib.com/

online-course.jsp

23

References:

CFO.com - News and Insights for Finance Executives Web. 10 Sep 2013. <http://www3.cfo.com/article/2013/1/

forecasting_cash-horde-crowdfunding-big-data-obamacare-small-to-medium-sized-business-revenue-recognition-

lease-accounting>.

https://www.wetfeet.com/articles/career-overview-corporate-finance

http://www.careers-in-finance.com/cfskill.htm

4. Corporate finance

Qualification

It covers both qualitative

(Economy, Industry and Com-

pany) and quantitative analy-

sis .The course also shows you

how to write a proper research

INR 5000 http://www.icaew.com/~/media/

Files/Qualifications-and-

programmes/CFQ/corporate-

finance-qualification-

brochure.pdf

5. Project Finance Mod-

ule

Developing countries like India

have a significant demand for

projects. Yet capital is scarce.

There is a need to channel the

capital into the most deserving

of projects. Further, the pool of

capital has to be widened

through involvement of private

sector.

INR 1,686 http://www.nseindia.com/

education/content/

module_ncfm.htm

Ankit Dewani II MBA K

'Bear Squeeze'

Changes in market conditions that force the pessimistic investors attempting to

profit from price declines to buy back an investment at a higher price than they

sold it for. A bear squeeze can be an intentional event created by certain players

in the investment markets, usually central banks or market makers.

A central bank can create a bear squeeze by increasing exchange rates, while

market makers can create it by pushing up the stock's price. A bear squeeze

forces bearish investors, who have shorted a stock, to incur a loss. In order to

exit their short positions, they must buyback the stock at a rising price. This is

also called as a "short squeeze."

BUZZWORD

24

CAMPUS BUZZ

On 6th July 2013 , corporate interface was arranged for the finance students of CUIM on "Business

Analytics and Intelligence" , which was headed by eminent corporate personalities Mr. Sriram Kannan,

the head of BFSI at Wipro & Mr. Sony Joseph from Study analytics. The speaker gave insights into

different aspects like advanced information

management , importance of business intelligence

and performance management, data integration and

predictive analysis, Credit Card Analytics and Fraud

Analytics, FATCA i.e. Foreign Account tax

Compliance Act. He also discussed regarding

Customer innovation strategies including campaign

analytics, customer segmentation, affinity analysis

and profitability, data centre health analytics,

automobile data analytics, telecom tower analytics,

etc. It was vital to enlarge our scope of knowledge

about the outside world and to understand the

requirements of the companies that come in for

placements. The various career prospects, benefits

of SAAS training and the growth available in the

analytics department of any companies was also

made clear to the students.

On 12th July 2013 , the corporate interface was held for finance students and Mr. Narasimhan.S, the

financial controller at Schneider Electric, ITBU was the guest speaker. The various financial strategies

for enterprise profitability with regard to

Schneider were dicussed. He briefed the

functionalities of Schneider, its acquisitions

and the banking finance obtained by it,

objective of finance through value pyramid,

finance function evaluation & the key financial

statements that determine the health of an

organization, Main factors which are a drag on

profitability including volume, price, cost &

mix. He also talked about working capital

management, cash management & funding

structure. The main focus was on raising long

and short term loans for new ventures, drafting

and implementation of Business Processes &

Systems in Start-ups, strategic Business

Support to Global Businesses, establishing &

managing companies' statutory & Internal

Reporting systems & effectively increasing the

performance of companies. It was really

informative in the career perspective as well as academic perspective. Interaction of the students with the

speaker helped to gain more practical knowledge.

25

On 26th July 2013, The finance department of CUIM conducted a session on "International Studies" for

the senior finance students by Dr. Ram Kesh Gupta. He discussed the importance of international

Studied for finance students and briefed the students about the various international certifications

available for finance students. He stressed upon the three important certifications viz. CISA, CFA, FRM.

These certifications were discussed in detail regarding its coverage, benefits, career opportunities,

application timings, preparation procedures, etc. This session was really helpful for the students to get to

know about these international certifications in detail and get their doubts clarified.

On 2nd August 2013 a session on ‘Transfer Pricing and Emerging issues ‘ was held in CUIM campus

for the senior finance students of Finance specialization of CUIM. It was taken by the guest speaker Mr.

Om Prakash (IRS), Director Intelligence Karnataka, Goa, Commissioner of Income Tax (Appeals) for

the second year finance students of CUIM.

The session consisted of topics like the

emergence of Transfer pricing and the

various applicability of Transfer pricing.

The different methods of determining

Transfer Pricing such as comparable

uncontrollable price, resale price method,

profit split , transactional net margin , etc

were extensively discussed. The session

was very informative and interactive

wherein the students got the insights of the

topic, transfer pricing both from academic

as well as career perspective. The

interaction of the students with the speaker

helped them gain practical knowledge and

the different career opportunities of finance

students in this area.

On 5th August 2013 a guest session on project appraisal and finance was conducted by the finance

department of CUIM for the senior finance

students and the session was headed by Mr.

Arvindan, Former VP and Head of Strategy and

Planning at GMR Group. He discussed regarding

project finance deals, the infrastructure project in

India, its market size. Also the basic building

blocks of financing the projects are discussed

along with topics like loan syndication,

multilateral Agency, Other finance

intermediaries , the different forms of funding,

etc. This guest lecture helped the students to

understand the practical aspects of the project

finance and loan syndication in a very

interactive way.

26

On 14th August 2013 , a guest lecture was held for the

finance students in the area of "Leasing and Hire Purchase

as a Source of Corporate Finance". The speaker was Dr.

Punith Cariappa, Corporate Consultant & Ex-Director

Aceline Training and Consulting Pvt. Ltd. She discussed on

the topic like what is leasing, Types of leasing, Operating

and Financial lease, numerical in Operating leasing and

Financial lease, sale and lease back, leveraged lease,

economic rationale for leasing, advantages of leasing, Hire

purchasing and difference between hire purchasing and

leasing. The session made the students aware of the

fundamentals of leasing and when combined with the

practical knowledge that was shared, it enhanced the

theoretical concept of the students.

On 12th September 2013 , Mr Vinod Gangadharan,

Consulting Practice Director of Oracle, gave a orientation

on Oracle's leading banking solution software, Oracle

Flexcube Universal Banking (FCUB) to the senior finance

students of Finance specialization, CUIM. The session

touched upon the functional as well as technical highlights

of the product and how it delivers the core banking

solutions in various aspects of banking such as retail,

corporate, investment banking , Islamic banking, etc. The

session also covered the career opportunities of Flexcube

trained finance students as well as a brief outline of the

training methodology and procedure of the upcoming

'Oracle Flexcube Universal banking 12.0.1 Training

Session' going to be conducted for the finance students of

CUIM by Oracle.

On 14th September 2013 , as a part of the finance club

activity a debate was conducted by the senior finance

students of CUIM on the topic "Indian Economy is in

Danger". The debate was conducted as a competition

between F1 (Finance IJK) and F2 (Finance LMN)

consisting of 4 participants from each team. Teams were

instructed beforehand to make their arguments on the basis

of key macro economic aspects such as the GDP, Deficit,

Inflation, etc. Team chosen to speak in favor of the topic

(affirmative team) was asked to start the debate. Each team

was given 3 minutes to make their opening statement,

followed by a detailed discussion & debate amongst the

participants. The quality of debate between the teams was

well appreciated. Different points of view, supported by

strong data and numerical facts, were presented by the

participants. The audience participation was also

commendable through good and quality questions being

raised by the students.

27

Ankit Singhal

1321406

I MBA M

And the

is…

Vattam Bhargav II MBA V

SriKrishna II MBA M

QUIZ

Answers Of Quiz of August Issue

1) Hilton young commission

2) state bank of India

3) INMB-(Indo Nigerian merchant

bank)

4) comptoire d'escompte-de paris

of france in 1860's

5) syndicate bank

6) SEBI

7) 1988

8) SBI

9) 49per cent

10) 25per cent

11) SBI

12) 26per cent

13) YES bank

14) American Express

15) sanjiv misra

1. South and North Malabar gramin banks have been merged to form a new

RRB named as what in July 2013?

2. Which Indian non banking financial company got in principal approval

for white label ATMs in July 2013?

3. Who has been re-elected as chairman of Indian banks association for

2013-2014 in June 2013?

4. Morgan Stanley has signed an agreement to sell its Indian wealth

management unit to which bank for a disclosed sum in May 2013?

5. The SARFAESI act is related to?

6. Loans given to farmers are treated as?

7. What does the term FLCC stand for?

8. FirstRand bank started the retail and commercial banking operations in

India in April 2012.it belongs to?

9. Expand CDR as used in banking sector?

10. Which act was framed to deal more effectively with the problem of non

performing assets in banking system?

11. An economic system combining private sector and public sector is

called?

12. Index of Industrial production is complied and published by?

13. As per World Bank report, which country is the largest recipient of

remittances in the world in 2012?

14. Trade control in India is regulated by?

15. What is the full form of IDR used in banking/financial sector?

28

Ganesh Prabhu

II MBA K

CROSSWORD ANSWERS ACROSS DOWN 5. StopLossOrder 1. ESCROW 6. LimitOrder 2. SecurityMarketLine 8. TechnicalAnalysis 3. PanicSelling 9. MerchantBank 4. Ombudsman 10. Reconciliation 7. MondayEffect

Across

5. An order placed with a broker to

sell a security when it reaches a

certain price

6. An order placed with a brokerage

to buy or sell a set number of

shares at a specified price or better

8. The academic study of historical

chart patterns and trends of

publicly traded stocks

9. A bank that deals mostly in (but is

not limited to) international

finance, long-term loans for

companies and underwriting

10. An accounting process used to

compare two sets of records to

ensure the figures are in agreement

and are accurate.

11. A measurement of the degree to

which a firm or project incurs a

combination of fixed and variable

costs

Down

1. A financial instrument held by a third party on behalf of the other two parties in a transaction.

2. A line that graphs the systematic, or market, risk versus return of the whole market at a certain time

and shows all risky marketable securities

3. Wide-scale selling of an investment, causing a sharp decline in price

4. An official who investigates complaints (usually lodged by private citizens) against businesses,

financial institutions and/or the government

7. A theory that states that returns on the stock market on Mondays will follow the prevailing trend

from the previous Friday. Therefore, if the market was up on Friday, it should continue through the

weekend and, come Monday, resume its rise

29

EDITOR : Eldho Poulose & Sailabala Nayak

NEWS:

Srivishnu Garbham & Sailabala

CONTEMPORARY ARTICLES:

Eldho Poulose

DEBATE: Akansha Bansal & Sabahat Bashir

FINANCIAL SERVICES INDUSTRY ANALSIS

Abhishek , Sabahat, Ankit, Srivishnu, Tina

CREATIVE HEAD AND DESIGN: Arpita Samanta

SCAM:

Akansha Jha

INVESTOR’S CHECK:

Abhishek Aggarwal

GRAPHS & RATES: Gaurav Agarwal

ALUMNI SPEAK: Mithil Kr. A

STOCK WATCH : Ankit & SriKrishna

BUZZWORD: Ankit Dewani

CROSSWORD: Ganesh Prabhu COMMODITY MARKET: Vattam Bhargav

REVIEW:

Paridhi Goyal

QUIZ:SriKrishna & Bhargav

DID YOU KNOW: Tina D’Souza

30

chaanakya `

About Us

Chaanakya is the official Finance Magazine of

Wealth Incorporation, the Finance Club. It is released monthly.

Its objective is to keep each & everyone abreast with the activities and events of the world of

finance.

Christ University Institute of Management

Christ University, Hosur Road,

Bangalore - 560029,

Karnataka, India

Tel: +91-80-4012 9531/9532

Fax: +91-80-4012 9000

Website: www.christuniversity.in

Please mail your valuable reviews and feedbacks at

chaanakya@mba.christuniversity.in

(For Private Circulation Only)