My principles of life and future path could be different if I couldn't come across Mr. Rakesh Jhunjhunwala.One memorable evening I was engaged in deep chatting with my dearest friend Nikhil and he told me about Mr. Jhunjhunwala.I was so impressed after listening the full story of Mr.Jhunjhunwala.I decided to join Praj Industries Ltd (my previous company) and one day I came across my philosopher. Everything in my life has been changed drastically. I never ever had a thought to go with investment thesis. First time I am feeling happy and proudly to elaborate some of thoughts of my "guru”. I had different mentality and wrong impression about stock exchange and investment policies. I started to do stock market analysis in the year of 2002 and I put my strong foot print on investment world in the year of 2005.
I would be happy if I define stock market investment in terms of "intelligent investment".
Mr. Rakesh Jhunjhunwala is a famous Indian trader who is often referred as “Indian Warren Buffett”. He believed in the “India story” made a good fortune from it. He is not only a trader but also a successful investor. He spotted opportunities in good companies like Praj Industries, Pantaloon Retail, Titan, CRISIL, Lupin and Punj Lloyd.etc when no one was interested in them.
Rakesh Jhunjhunwala (RJ) stated investing career in 1983 and used to put in 15-16 working hours in his early days. His company name is “Rare Enterprises”. He was ranked at 1,062 in the Forbes Billionaire list. Like Warren Buffett, he was fond of stocks from his childhood days. He was nicknamed as “Young Tiger” in the early 90’s (Harshad Mehta days).
Profession: Chartered Accountant.
Passion: Stock Markets.
Biggest award: One of India's best five investors by Business India magazine in 1998.
His wealth: Around Rs 5,000 crore. He started his investing career with Rs 5,000.
His assets: Passion and confidence.
Success secrets:
1. He rarely invests in index stocks. He is an expert in picking value stocks when no one is noticed them. He invested in stocks like BEML and other PSU Stocks when everyone looked at technology stocks in early 2000.
2. Confine your portfolio to 15-20 stocks. Invest for long term to get good returns.
3. Stay away from cyclical stocks.
4. To get exceptional returns, you need to take risks.
5. He generally stays away from commodity stocks and index stocks. But he recently bought some steel stocks.
6. Like Jack Welch of GE, he believes in extensive reading and learning.
Famous quotes:
1. Markets are like women -- always commanding, mysterious, unpredictable and volatile.
2. Anticipate trend and benefit from it. Traders should go against human nature.
3. Don’t insult the great man (Warren Buffett) by comparing me to him.
4. Successful investors are opportunistic and optimistic ones.
5. Growth comes out of chaos.
6. Market is above individuals. The market is rational. An individual can never be smarter than the market
7. Maximize profits and minimize losses.
8. Invest in a business not a company.
9. Emotional investment is a sure way to make loss in stock markets.
10. I don’t advice anybody. I don’t manage anybody’s money.
15 Stock investment tips from Rakesh Jhunjhunwala:
1. Always go against tide. Buy when others are selling and sell when others are buying.
2. If you believe in the growth prospects of a company, invest in the stock and give it sufficient time.
3. Be an optimist. Pessimistic investors always lose money in stock markets.
4. Greedy investors will never make money in stock markets. Book profits after reaching your target price.
5. Never put your hard earned money without proper research. Never invest according to “Stock tips”.
6. You have to lose many a battle to win the war. This Winston Churchill quote is always quoted by Jhunjhunwala. Balance fear and greed.
7. Never react and change your investment decisions according to daily business news. Panic selling is a bad habit.
8. Hastily taken decisions always result in heavy losses. Take your own time before putting money in any stock.
9. Invest in companies which have strong management and competitive advantage. 10. Stock markets are always right. Never time the markets.
11. Opportunities will come and go. Are you prepared to grab them?
12. Never invest at unreasonable valuations. Never run for companies which are in limelight.
13. Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.
14. Means are important. Read and analyse the available information with an open mind and look for opportunities.
15. Prepare for losses. Losses are part and parcel of stock market investor life. Learn from mistakes. Learn to take a loss. Disciplined passionate investors like Rakesh Jhunjhunwala are always inspirational figures for young investors. One can make a good fortune in stock markets if you follow his investment ideas and principles.
Friday, August 7, 2009
Wednesday, August 5, 2009
QIP: Fundamentals
What is QIP?
Qualified institutional placement (QIP) is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants, which are convertible into equity shares, to a qualified institutional buyer (QIB). Apart from preferential allotment, this is the only other speedy method of private placement for companies to raise money. It scores over other methods, as it does not involve many of the common procedural requirements, such as the submission of pre-issue filings to the market regulator.
Why was QIP introduced?
To enable listed companies raise money from domestic markets in a short span of time, market regulator Sebi introduced the concept of QIP in 2006. This was also done to prevent listed companies in India from developing an excessive dependence on foreign capital. Prior to introduction of QIPs, the complications associated with raising capital in the domestic markets had led many companies to look at tapping overseas markets via foreign currency convertible bonds (FCCB) and global depository receipts (GDR). This has also helped issuing companies price their issues closer to the prevailing market price.
Who can participate in the issue?
The specified securities can be issued only to QIBs, who shall not be promoters or related to promoters of the issuer. The issue is managed by a Sebi-registered merchant banker. There is no pre-issue filing of the placement document with Sebi. The placement document is placed on the websites of the stock exchanges and the issuer, with appropriate disclaimer to the effect that the placement is meant only for QIBs on private placement basis and is not an offer to the public.
Why there is a sudden rush for QIPs?
Several companies, especially real estate, were starved of money in the recent slowdown and were finding it difficult to stay afloat. The revival in market sentiment came as a boon to these companies, which are rushing to raise money, mainly to retire expensive debt and restructure their balance sheets. In over a month, funds raised through QIPs by companies has already exceeded the total amount of roughly Rs 3,500 crore that was raised in 2008. A large number of such issues are expected to hit the market in the next few weeks.
Why there is a sudden rush for QIPs?
Several companies, especially real estate, were starved of money in the recent slowdown and were finding it difficult to stay afloat. The revival in market sentiment came as a boon to these companies, which are rushing to raise money, mainly to retire expensive debt and restructure their balance sheets. In over a month, funds raised through QIPs by companies has already exceeded the total amount of roughly Rs 3,500 crore that was raised in 2008. A large number of such issues are expected to hit the market in the next few weeks.
Qualified institutional placement (QIP) is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants, which are convertible into equity shares, to a qualified institutional buyer (QIB). Apart from preferential allotment, this is the only other speedy method of private placement for companies to raise money. It scores over other methods, as it does not involve many of the common procedural requirements, such as the submission of pre-issue filings to the market regulator.
Why was QIP introduced?
To enable listed companies raise money from domestic markets in a short span of time, market regulator Sebi introduced the concept of QIP in 2006. This was also done to prevent listed companies in India from developing an excessive dependence on foreign capital. Prior to introduction of QIPs, the complications associated with raising capital in the domestic markets had led many companies to look at tapping overseas markets via foreign currency convertible bonds (FCCB) and global depository receipts (GDR). This has also helped issuing companies price their issues closer to the prevailing market price.
Who can participate in the issue?
The specified securities can be issued only to QIBs, who shall not be promoters or related to promoters of the issuer. The issue is managed by a Sebi-registered merchant banker. There is no pre-issue filing of the placement document with Sebi. The placement document is placed on the websites of the stock exchanges and the issuer, with appropriate disclaimer to the effect that the placement is meant only for QIBs on private placement basis and is not an offer to the public.
Why there is a sudden rush for QIPs?
Several companies, especially real estate, were starved of money in the recent slowdown and were finding it difficult to stay afloat. The revival in market sentiment came as a boon to these companies, which are rushing to raise money, mainly to retire expensive debt and restructure their balance sheets. In over a month, funds raised through QIPs by companies has already exceeded the total amount of roughly Rs 3,500 crore that was raised in 2008. A large number of such issues are expected to hit the market in the next few weeks.
Why there is a sudden rush for QIPs?
Several companies, especially real estate, were starved of money in the recent slowdown and were finding it difficult to stay afloat. The revival in market sentiment came as a boon to these companies, which are rushing to raise money, mainly to retire expensive debt and restructure their balance sheets. In over a month, funds raised through QIPs by companies has already exceeded the total amount of roughly Rs 3,500 crore that was raised in 2008. A large number of such issues are expected to hit the market in the next few weeks.
Wednesday, July 29, 2009
Stock Pick: Brushman (India) Ltd/ Multibagger Recommendation
Company has received following Work orders worth Rs. 154.64 Crores:* Lower Wardha Mail Canal- Construction of Barrage @ Pulgaon on Wardha River with mecha.nical gate erection, survey design and all work oFRs. 92.58 Crores.* Construction of Flyover at Kapurwadi Junction on Thane Ghodbunder Road join venture with Nagarjuna Construction Company Ltd. in that total cost of work is 131.37 Crores. J.Kurnar Infraprojects Ltd. share is 40% of 131.37 Crores i.e. 52.55 Crores of the total cost of work.* Work order of Dahegaon (Gargoti) M.I Tank Tq Ralegaon, Dist Yavatmal Construction of earthwork of Dam, Excavation of Approach and tail channel, Construction of Waste wier and falSs in tail channel & Head regulator of Rs.7.67 Crores.* Work order of piling work in various parts of Mumbai of Rs.1.84 Crores.As on today the work order position is Rs, 1278.74 Crores.(Livemint.com)
Monday, July 6, 2009
Interim Budget 2009-2010 - Summary
Interim Budget 2009-2010 - Summary
The Interim Budget highlights the focus on aam aadmi in the development process. The year 2008-09 has seen substantial increase in outlays spanning across sectors.Continuing the trend, the budget for 2009-10 will have increased plan outlays for key sectors and adequate allocations for the flagship programmes which directly impact aam aadmi.The other major highlights of the passing financial year were a massive debt waiver for farmers and two stimulus packages to counter the negative fallout of the global economic slowdown. In the Interim Budget presented in the Lok Sabha today, the Finance Minister, Shri Pranab Mukherjee, indicated that 'additional plan expenditure of anything from 0.5% to 1.0% of the GDP' will need to be considered in the regular budget, to be presented by the government after the general elections.
The Growth Trend:
The Finance Minister also highlighted that the economy has grown at a healthy rate in the recent yeaRs The Gross Domestic Product has increased by 7.5%, 9.5%, 9.7% and 9% in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9% for three consecutive years for the first time. With per capita income growing at 7.4 percent per annum, this represented the fastest ever improvement in living standards over a four-year period. The growth drivers for the period were agriculture, services, manufacturing along with trade and construction. The fiscal deficit has come down from 4.5% in 2003-04 to 2.7% in 2007-08 and revenue deficit from 3.6% to 1.1% in 2007-08. He further stated that the annual growth rate of agriculture rose to 3.7% during 2003-04 to 2007-08. Foodgrain production recorded an increase of 10 million tonnes each year during this period and touched an all time high of 230 million tonnes in 2007-08. The manufacturing sector recorded a growth of 9.5% per annum in the period 2004-05 to 2007-08, and exports grew at an annual average growth rate of 26.4% in US dollar terms during this period.Despite the global financial crisis, which began in 2007 impacting most emerging market economies, 7.1% rate of GDP growth in the current year makes India the second fastest growing economy in the world.
Flagship Programmes:
Adequate funds have been ensured for the flagship programmes. The National Rural Employment Guarantee Scheme gets Rs 30,100 crore for the year 2009-10. This Scheme generated 138.76 crore person days of employment covering 3.51 crore households in 2008-09.An allocation of Rs 13,100 crore has been provided for b. This Scheme has made significant contribution in providing access to and infrastructure for elementary education.Allocation for the national programme of Mid-day Meals in schools has been kept at Rs 8,000 crore in 2009-10. This is the world's largest school feeding programme and has contributed to enhancement of school participation, reduction in class room hunger, and fostering of social and gender parity.The Integrated Child Development Scheme gets an allocation of Rs 6,705 crore. This Scheme was expanded twice in the last five years to cover the hitherto uncovered habitations across the country.Rs 11,842 crore have been proposed for the Jawaharlal Nehru National urban Renewal Mission. Under this Mission, 386 projects amounting to Rs 39,000 crore have been sanctioned at the end of 2008.Rajiv Gandhi Rural Drinking Water Mission is to receive Rs 7,400 crore for supplying safe drinking water to uncovered habitations and slipped back habitations.Rs 1,200 crore are being provided for the Total Rural Sanitation Programme. Rs 12,070 crore are being allocated to the National Rural Health Mission.Bharat Nirman, the time-bound plan for building rural infrastructure receives Rs 40,900 crore. This package has six components – rural roads, telephony, irrigation, drinking water supply, housing and electrification.
Agriculture:
The Finance Minister highlighted the focused attention given by the Government to the farming sector. The highlights include 300% rise in Plan allocation for agriculture in the last five years and launch of Rs 25,000 crore Rashtriya Krishi Vikas Yojana to increase farm growth to four% per year during the XI Plan.Credit disbursement to the farm sector has gone up from Rs 87 thousand crore in 2003-04 to about Rs 2.5 lakh crore in 2007-08 marking a three fold increase. Shri Mukherjee announced that the Government will continue to provide interest subvention in 2009-10 to ensure that farmers get short term crop loans upto Rs 3 lakh at 7% per annum.The Government announced the Agricultural Debt Waiver and Debt Relief Scheme for farmers in the last budget and implemented it by June 30, 2008 as scheduled. The Scheme has been able to restore institutional credit to indebted farmeRs As per early reports, the total debt waiver and debt relief so far, amounts to Rs 65 thousand three hundred crore covering 3.6 crore farmers.Remunerative prices have been given to farmers for their crops. Since 2003-04, Minimum Support Price (MSP) for the common variety of paddy was increased from Rs 550 to Rs 900 per quintal for the crop year 2008-09. In case of wheat the increase was from Rs 630 in 2003-04 to Rs 1,080 per quintal for the year 2009.
Rural Development:
A number of programmes have been designed to help improve the living conditions of rural population. The corpus of the Rural Infrastructure Development Fund has increased from Rs 5,500 crore in 2003-04 to Rs 14 thousand crore for the year 2008-09 ensuring greater availability of funds for developing rural infrastructure.Under the Indira Awaas Yojana, 60.12 lakh houses have already been constructed by the end of 2008 as against the target of building 60 lakh houses by March 2009.The Government proposes to substantially expand the Panchayat Empowerment and Accountability Scheme. The Project Arrow, the postal scheme to provide new technology – enabled services to the common man, will also receive full Government support.
Education:
The Finance Minister has called 2008-09 as a 'momentous year for secondary education' as several major initiatives including a new Centrally Sponsored Scheme to universalize education at secondary stage were launched during the year.Outlay on higher education has been increased 900% in the XI Five Year Plan. An ordinance to open 15 Central Universities has been promulgated, 6 new IITs have started functioning, two more IITs are expected to commence their academic sessions in 2009-10, five Indian Institutes of Science Education and Research have become functional, teaching is expected to commence in four out of six new IIMs and two new schools of Planning and Architecture have started functioning.Since 2004-05 nearly 500 ITIs have been upgraded into centres of excellence and a National Skill Development Corporation has been created to stimulate and coordinate private sector participation in skill development.
Social Sector:
Many Schemes have been initiated for women and weak and downtrodden people of the society. A new Ministry of Minority Affairs has been set up and a 15-point programme has been announced for the welfare of the minorities.The Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act has helped in getting to Scheduled Tribes and other traditional forest dwellers legal rights on forest lands.The authorized capital of the National Safai Karmachari Finance and Development Corporation has been increased. The Finance Minister announced that the authorized capital of the Rashtriya Mahila Kosh will also be strengthened.The Aam Aadmi Bima Yojana has provided death and disability cover to over 60 lakh rural landless. A Rashtriya Swasthya Bima Yojana for BPL families has also been started. As on January 15 this year, 22 States and UTs have initiated the process to implement the Scheme.The Finance Minister announced that two new schemes, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme are being launched in the current year to provide pension to widows and severely disabled persons, respectively. He also proposed to give priority to young widows in admissions to ITIs and to provide stipend and bear training cost.
Financial Sector and Tax Reforms:
The Finance Minister informed that the asset quality of Public Sector Banks has improved and non performing assets have declined considerably from 2004 to 2008. He also enumerated the steps taken to promote a safe, transparent and efficient share market and to protect market integrity. He further informed that the Companies Bill 2008 has been introduced in parliament to make the Companies Act a compact law adopted to internationally accepted best practices.The Government has rationalized income tax rates and steadily reduced customs duty rates. Rates of Union Excise Duties and Service Tax have also been rationalized. Tax administration is being modernized through extensive use of information technology. 109 marine vessels are being acquired form the Customs Department to prevent movement of contraband goods across the country's sea borders.
Budget Provisions:
The Budget for 2009-10 will have total expenditure of Rs 9,53,231 crore, comprising Rs 2,85,149 crore under Plan and Rs 6,68,082 crore under non-Plan. The Gross Budgetary Support for the Plan is 17.16% higher than that in 2008-09.To ensure continuity in financing of rural infrastructure projects, RIDF-XV is being proposed with a corpus of Rs 14,000 crore. The separate window for rural roads with a corpus of Rs 4,000 crore will continue.To counter the negative impact on exports due to the global financial crisis, the interest subvention of 2% on pre and post shipment credit for certain employment oriented sectors is proposed to be extended.It is proposed to recapitalise the public sector banks over next two years to enable them to maintain Capital to Risk Weighted Assets Ratio (CRAR) of 12% and to ensure that credit growth continues to sustain economic growth.The allocation for Defence is being increased to Rs 1,14,703 crore. This will include Rs 54,824 crore for capital expenditure.A provision of Rs 95,579 crore for major subsidies including food, fertilizer and petroleum has been made in the Budget.Gross Tax Revenue receipts at the existing rates of taxation are estimated at Rs 6,71293 crore and Centre's net tax revenue at Rs 5,00,096 crore. With revenue expenditure estimated at Rs 8,48,085 crore, the revenue deficit amounts to 4.0% of GDP. Fiscal Deficit is estimated at Rs 3,32,835 crore which is 5.5% of GDP. This would be lower than in 2008-09, but higher than would be appropriate under normal circumstances. The Minister explained: 'However, conditions in the year ahead are not likely to be normal and, therefore, the high fiscal deficit is inevitable. We will return to FRBM targets once the economy is restored to its recent trend growth path.'
Source: Equity bull
The Interim Budget highlights the focus on aam aadmi in the development process. The year 2008-09 has seen substantial increase in outlays spanning across sectors.Continuing the trend, the budget for 2009-10 will have increased plan outlays for key sectors and adequate allocations for the flagship programmes which directly impact aam aadmi.The other major highlights of the passing financial year were a massive debt waiver for farmers and two stimulus packages to counter the negative fallout of the global economic slowdown. In the Interim Budget presented in the Lok Sabha today, the Finance Minister, Shri Pranab Mukherjee, indicated that 'additional plan expenditure of anything from 0.5% to 1.0% of the GDP' will need to be considered in the regular budget, to be presented by the government after the general elections.
The Growth Trend:
The Finance Minister also highlighted that the economy has grown at a healthy rate in the recent yeaRs The Gross Domestic Product has increased by 7.5%, 9.5%, 9.7% and 9% in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9% for three consecutive years for the first time. With per capita income growing at 7.4 percent per annum, this represented the fastest ever improvement in living standards over a four-year period. The growth drivers for the period were agriculture, services, manufacturing along with trade and construction. The fiscal deficit has come down from 4.5% in 2003-04 to 2.7% in 2007-08 and revenue deficit from 3.6% to 1.1% in 2007-08. He further stated that the annual growth rate of agriculture rose to 3.7% during 2003-04 to 2007-08. Foodgrain production recorded an increase of 10 million tonnes each year during this period and touched an all time high of 230 million tonnes in 2007-08. The manufacturing sector recorded a growth of 9.5% per annum in the period 2004-05 to 2007-08, and exports grew at an annual average growth rate of 26.4% in US dollar terms during this period.Despite the global financial crisis, which began in 2007 impacting most emerging market economies, 7.1% rate of GDP growth in the current year makes India the second fastest growing economy in the world.
Flagship Programmes:
Adequate funds have been ensured for the flagship programmes. The National Rural Employment Guarantee Scheme gets Rs 30,100 crore for the year 2009-10. This Scheme generated 138.76 crore person days of employment covering 3.51 crore households in 2008-09.An allocation of Rs 13,100 crore has been provided for b. This Scheme has made significant contribution in providing access to and infrastructure for elementary education.Allocation for the national programme of Mid-day Meals in schools has been kept at Rs 8,000 crore in 2009-10. This is the world's largest school feeding programme and has contributed to enhancement of school participation, reduction in class room hunger, and fostering of social and gender parity.The Integrated Child Development Scheme gets an allocation of Rs 6,705 crore. This Scheme was expanded twice in the last five years to cover the hitherto uncovered habitations across the country.Rs 11,842 crore have been proposed for the Jawaharlal Nehru National urban Renewal Mission. Under this Mission, 386 projects amounting to Rs 39,000 crore have been sanctioned at the end of 2008.Rajiv Gandhi Rural Drinking Water Mission is to receive Rs 7,400 crore for supplying safe drinking water to uncovered habitations and slipped back habitations.Rs 1,200 crore are being provided for the Total Rural Sanitation Programme. Rs 12,070 crore are being allocated to the National Rural Health Mission.Bharat Nirman, the time-bound plan for building rural infrastructure receives Rs 40,900 crore. This package has six components – rural roads, telephony, irrigation, drinking water supply, housing and electrification.
Agriculture:
The Finance Minister highlighted the focused attention given by the Government to the farming sector. The highlights include 300% rise in Plan allocation for agriculture in the last five years and launch of Rs 25,000 crore Rashtriya Krishi Vikas Yojana to increase farm growth to four% per year during the XI Plan.Credit disbursement to the farm sector has gone up from Rs 87 thousand crore in 2003-04 to about Rs 2.5 lakh crore in 2007-08 marking a three fold increase. Shri Mukherjee announced that the Government will continue to provide interest subvention in 2009-10 to ensure that farmers get short term crop loans upto Rs 3 lakh at 7% per annum.The Government announced the Agricultural Debt Waiver and Debt Relief Scheme for farmers in the last budget and implemented it by June 30, 2008 as scheduled. The Scheme has been able to restore institutional credit to indebted farmeRs As per early reports, the total debt waiver and debt relief so far, amounts to Rs 65 thousand three hundred crore covering 3.6 crore farmers.Remunerative prices have been given to farmers for their crops. Since 2003-04, Minimum Support Price (MSP) for the common variety of paddy was increased from Rs 550 to Rs 900 per quintal for the crop year 2008-09. In case of wheat the increase was from Rs 630 in 2003-04 to Rs 1,080 per quintal for the year 2009.
Rural Development:
A number of programmes have been designed to help improve the living conditions of rural population. The corpus of the Rural Infrastructure Development Fund has increased from Rs 5,500 crore in 2003-04 to Rs 14 thousand crore for the year 2008-09 ensuring greater availability of funds for developing rural infrastructure.Under the Indira Awaas Yojana, 60.12 lakh houses have already been constructed by the end of 2008 as against the target of building 60 lakh houses by March 2009.The Government proposes to substantially expand the Panchayat Empowerment and Accountability Scheme. The Project Arrow, the postal scheme to provide new technology – enabled services to the common man, will also receive full Government support.
Education:
The Finance Minister has called 2008-09 as a 'momentous year for secondary education' as several major initiatives including a new Centrally Sponsored Scheme to universalize education at secondary stage were launched during the year.Outlay on higher education has been increased 900% in the XI Five Year Plan. An ordinance to open 15 Central Universities has been promulgated, 6 new IITs have started functioning, two more IITs are expected to commence their academic sessions in 2009-10, five Indian Institutes of Science Education and Research have become functional, teaching is expected to commence in four out of six new IIMs and two new schools of Planning and Architecture have started functioning.Since 2004-05 nearly 500 ITIs have been upgraded into centres of excellence and a National Skill Development Corporation has been created to stimulate and coordinate private sector participation in skill development.
Social Sector:
Many Schemes have been initiated for women and weak and downtrodden people of the society. A new Ministry of Minority Affairs has been set up and a 15-point programme has been announced for the welfare of the minorities.The Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act has helped in getting to Scheduled Tribes and other traditional forest dwellers legal rights on forest lands.The authorized capital of the National Safai Karmachari Finance and Development Corporation has been increased. The Finance Minister announced that the authorized capital of the Rashtriya Mahila Kosh will also be strengthened.The Aam Aadmi Bima Yojana has provided death and disability cover to over 60 lakh rural landless. A Rashtriya Swasthya Bima Yojana for BPL families has also been started. As on January 15 this year, 22 States and UTs have initiated the process to implement the Scheme.The Finance Minister announced that two new schemes, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme are being launched in the current year to provide pension to widows and severely disabled persons, respectively. He also proposed to give priority to young widows in admissions to ITIs and to provide stipend and bear training cost.
Financial Sector and Tax Reforms:
The Finance Minister informed that the asset quality of Public Sector Banks has improved and non performing assets have declined considerably from 2004 to 2008. He also enumerated the steps taken to promote a safe, transparent and efficient share market and to protect market integrity. He further informed that the Companies Bill 2008 has been introduced in parliament to make the Companies Act a compact law adopted to internationally accepted best practices.The Government has rationalized income tax rates and steadily reduced customs duty rates. Rates of Union Excise Duties and Service Tax have also been rationalized. Tax administration is being modernized through extensive use of information technology. 109 marine vessels are being acquired form the Customs Department to prevent movement of contraband goods across the country's sea borders.
Budget Provisions:
The Budget for 2009-10 will have total expenditure of Rs 9,53,231 crore, comprising Rs 2,85,149 crore under Plan and Rs 6,68,082 crore under non-Plan. The Gross Budgetary Support for the Plan is 17.16% higher than that in 2008-09.To ensure continuity in financing of rural infrastructure projects, RIDF-XV is being proposed with a corpus of Rs 14,000 crore. The separate window for rural roads with a corpus of Rs 4,000 crore will continue.To counter the negative impact on exports due to the global financial crisis, the interest subvention of 2% on pre and post shipment credit for certain employment oriented sectors is proposed to be extended.It is proposed to recapitalise the public sector banks over next two years to enable them to maintain Capital to Risk Weighted Assets Ratio (CRAR) of 12% and to ensure that credit growth continues to sustain economic growth.The allocation for Defence is being increased to Rs 1,14,703 crore. This will include Rs 54,824 crore for capital expenditure.A provision of Rs 95,579 crore for major subsidies including food, fertilizer and petroleum has been made in the Budget.Gross Tax Revenue receipts at the existing rates of taxation are estimated at Rs 6,71293 crore and Centre's net tax revenue at Rs 5,00,096 crore. With revenue expenditure estimated at Rs 8,48,085 crore, the revenue deficit amounts to 4.0% of GDP. Fiscal Deficit is estimated at Rs 3,32,835 crore which is 5.5% of GDP. This would be lower than in 2008-09, but higher than would be appropriate under normal circumstances. The Minister explained: 'However, conditions in the year ahead are not likely to be normal and, therefore, the high fiscal deficit is inevitable. We will return to FRBM targets once the economy is restored to its recent trend growth path.'
Source: Equity bull
Monday, June 29, 2009
Leaving India was biggest challenge - Mittal
"The biggest crisis or challenge I faced I believe is when I left India. I did not have any exposure to the global market, global situation and I landed up in a country (Indonesia) I never knew about," said Laxmi Mittal, Chairman and CEO, ArcelorMittal.
He admitted that ArcelorMittal did not anticipate a crisis of this magnitude, and said that the company has acknowledged the slowdown and was the first one to resort to cost-cutting measures. Mittal, 58, born in Sadulpur, Rajasthan, parted ways with his father and brother and took over the international affairs of the family business and left for Indonesia than three decades ago.He founded the Mittal Steel company in 1976. He expressed his disappointment over delays in securing regulatory approvals for his Rs. 1 lakh crore steel project in India. "We are disappointed with this. We are still awaiting some of the approvals, land approvals, environment approvals, and mining license; clearly this has delayed the progress by two years."
He admitted that ArcelorMittal did not anticipate a crisis of this magnitude, and said that the company has acknowledged the slowdown and was the first one to resort to cost-cutting measures. Mittal, 58, born in Sadulpur, Rajasthan, parted ways with his father and brother and took over the international affairs of the family business and left for Indonesia than three decades ago.He founded the Mittal Steel company in 1976. He expressed his disappointment over delays in securing regulatory approvals for his Rs. 1 lakh crore steel project in India. "We are disappointed with this. We are still awaiting some of the approvals, land approvals, environment approvals, and mining license; clearly this has delayed the progress by two years."
Aspiring engineers scared to opt for IT courses
The students who are aspiring for engineering career are opting for mechanical and civil engineering courses instead of IT courses. According to Karnataka Examinations Authority (KEA), around 60-70 percent of almost 1.2 lakh students who appeared for common entrance test (CET) this year are expected to opt for non-IT courses. Also many courses like computer engineering, medical and biotechnology which were in demand last year do not have many takers this year.
The change in career can be linked with big IT companies like Wipro, Infosys and TCS deciding to cut down the number of recruitment due to recession. Big companies are also seeking to cut down on existing staff to adapt to economic slowdown. In such situation students are not that ready to take risk by entering the IT field. "In times of recession, nobody is daring to opt for IT. There are more job opportunities in mechanical. Lot of students that I know prefer to go into electronics and communication and mechanical engineering," an aspiring engineering student Bhavish Kuttapa told Economic Times.Many students are interested in opting for telecommunication engineering as there are more jobs available in that field. It is expected from students to opt for recession-proof careers. "Something very similar happened few years ago when IT was doing better than other sectors. With government spending big on infrastructure, energy and telecom, there are more jobs available for mechanical, civil and electronic engineers," said GC Jayaprakash, principal consultant at executive search firm Stanton Chase International to economic times. (siliconindia news bureau,Bangalore)
The change in career can be linked with big IT companies like Wipro, Infosys and TCS deciding to cut down the number of recruitment due to recession. Big companies are also seeking to cut down on existing staff to adapt to economic slowdown. In such situation students are not that ready to take risk by entering the IT field. "In times of recession, nobody is daring to opt for IT. There are more job opportunities in mechanical. Lot of students that I know prefer to go into electronics and communication and mechanical engineering," an aspiring engineering student Bhavish Kuttapa told Economic Times.Many students are interested in opting for telecommunication engineering as there are more jobs available in that field. It is expected from students to opt for recession-proof careers. "Something very similar happened few years ago when IT was doing better than other sectors. With government spending big on infrastructure, energy and telecom, there are more jobs available for mechanical, civil and electronic engineers," said GC Jayaprakash, principal consultant at executive search firm Stanton Chase International to economic times. (siliconindia news bureau,Bangalore)
Multibagger Stock: Visu International
Visu International Ltd. (Formerly Visu Consultants Ltd.), a pioneer in the field of 'GLOBAL EDUCATION', is the main arm of Visu Group of Companies. Its core activity lies in assisting students to make the right choice with regard to higher education overseas. Every country on the globe has Universities which are vying for students across the frontiers. In such a scenario, it becomes an impossible task for a student to decide on the program, University and Country most suited to their requirements. In steps an experienced consultant like Visu, offering end to end services to our clients. With our experience and expertise in 'study abroad' spanning over two decades, we could be the trusted hand for any student.
Visu International Ltd., was started in 1983, by Mr. C.C.Reddy, an NRI from USA, Founder and Chairman, built the huge organization, that it is today. From a humble beginning, today he succeeded in the uphill task of dispelling all the myths usually associated with ' study abroad' and have brought the concept of overseas education to the doorstep of every student, by making it affordable and devoid of cumbersome procedures.
Visu International Ltd. has more than 73 offices all over the world, placing more than 75000 students in Universities abroad. Our reach extends to five continents and Universities in most Countries like the US, UK, Canada, Ireland, Singapore, Malaysia, Nepal, Kenya, Tanzania, Uganda, France and Spain.
It offers the following services:
Councelling
Coaching for TOEFEL, GRE, GMAT, SAT in India .About 50000 students per year are getting coaching in various centres within India.
Application Processing for admission abroad
e- application status
Visa guidance
Post Visa services
Bank Loan guidance
Travel Assistance
This year is the Silver Anniversary Year of Visu International and Management is hopeful of surpassing Rs. 100 crore turnovers with a significant increase in the bottom line.
Future Prospects:
Project today reported that Conglome Industries Pvt Ltd, a group company of Visu International Ltd, is planning to expand it presence in Africa, Myanmar and Vietnam.As per report, the company will carry out its expansion plan in the phased manner. In the first phase, Conglome intends to invest INR 500 crore in the various sectors in Africa, Myanmar and Vietnam. As per report, they have identified 11 sectors in agriculture, education, mini hydro power generation and distribution, roads, housing, bore wells, manufacturing of ethanol and alcoholic & non alcoholic beverages to make the investment. The funds for the expansion will be raised from equity, banks and partners.Apart from this, Conglome is also in the process of acquiring 8 companies in Africa at the investment cost of INR 100 crore. Out of which INR 25 crore will be equity and the rest will be raised from foreign funding.
About the Management:
Mr.C.C.Reddy,ChairmanMr.C.C.Reddy started his practice as an Attorney in the year 1960. He was a Member of the Communist Party of India and a State Leader in the Trade Union Movement. Mr.Reddy was exposed to International Law and in late 60s, he represented India in various International Law Conferences held in Moscow, Berlin and Helsinki under the leadership of the Legendary Mr.V.K. Krishna Menon.
In 1973, he moved to the United States of America as an Immigrant and there he headed various International business corporations as Chief Executive. He had exclusive trade relations with both East and West European countries. During this period, he was a Member of the U.S. Technology Transfer society, U.S. Chamber of Commerce and Australian Chamber of Commerce. He also was a Special Invitee to the African National Congress and he addressed the ANC in Johannesburg, South Africa.
In 1983 he established Visu Consultants Limited in India which is today known as Visu International Limited. Visu International Limited is the Flagship Company of the Visu Group of Companies with its offices in 20 countries and has 2000 employees across the Globe. Visu Group deals in Education, Software, Manufacturing in 8 countries in Africa, Trading from Hong Kong and China with Retail Operations in India and Africa.
Mr.Reddy is a Member of the Osmania University Academic Senate. While in U.S.A he has been a keen observer of the U.S. political system and believes that some of the electoral practices could apply to Indian political system.
In the recent elections, he has been named as the Vice Chairman of the A.P. Congress Committee Campaign Committee. Mr.Reddy conceived, designed and telecast the campaign material. The efficacy of the campaign materials resulted in a land-slide victory for the Congress Party. Mr.Reddy has been appointed as Advisor to the Government of A.P. on Foreign Investments and NRI affairs. In fulfilling this responsibility and in order to benefit the farming community of A.P. in particular, Mr.Reddy is in the process of finalizing a lucrative Agricultural Development Scheme in African Countries where the A.P.Farmers would be relocated for using their skills and making their personal fortunes as other expatriates have done for centuries in these countries. Mr.Reddy is also helping in sourcing foreign investments from foreign countries for developmental projects in A.P.
Mr.Reddy has also entered into production of Feature Films and TV serials. One Telugu feature film is ready for release and production for two more films is going to start very soon. Mr.Reddy has plans to regularly produce feature films under the banner of Visu Films International.
At present CMP of INR 5.55, the stock looks very attractive and it will give a 200-350% return in time duration of 1-2 years.
Positive Points for this stock for Up moving:
1) Company doing very good and available very cheep at INR 5.55/-
2) Book Value 25/-; Company Assets 79 Crores.
3) Company planning to invest 500 Crores various sectors.
4) Company Having Good Corporate house in Hyderabad Business center and good Land Bank.
5) Company releasing Telugu Movie Soon. So Mumbai operators are accumulating with a target of INR 50/-
6) Company Doing Education Business; expecting good news from company.
7) Company planning to declare more future plans.
Visu International Ltd., was started in 1983, by Mr. C.C.Reddy, an NRI from USA, Founder and Chairman, built the huge organization, that it is today. From a humble beginning, today he succeeded in the uphill task of dispelling all the myths usually associated with ' study abroad' and have brought the concept of overseas education to the doorstep of every student, by making it affordable and devoid of cumbersome procedures.
Visu International Ltd. has more than 73 offices all over the world, placing more than 75000 students in Universities abroad. Our reach extends to five continents and Universities in most Countries like the US, UK, Canada, Ireland, Singapore, Malaysia, Nepal, Kenya, Tanzania, Uganda, France and Spain.
It offers the following services:
Councelling
Coaching for TOEFEL, GRE, GMAT, SAT in India .About 50000 students per year are getting coaching in various centres within India.
Application Processing for admission abroad
e- application status
Visa guidance
Post Visa services
Bank Loan guidance
Travel Assistance
This year is the Silver Anniversary Year of Visu International and Management is hopeful of surpassing Rs. 100 crore turnovers with a significant increase in the bottom line.
Future Prospects:
Project today reported that Conglome Industries Pvt Ltd, a group company of Visu International Ltd, is planning to expand it presence in Africa, Myanmar and Vietnam.As per report, the company will carry out its expansion plan in the phased manner. In the first phase, Conglome intends to invest INR 500 crore in the various sectors in Africa, Myanmar and Vietnam. As per report, they have identified 11 sectors in agriculture, education, mini hydro power generation and distribution, roads, housing, bore wells, manufacturing of ethanol and alcoholic & non alcoholic beverages to make the investment. The funds for the expansion will be raised from equity, banks and partners.Apart from this, Conglome is also in the process of acquiring 8 companies in Africa at the investment cost of INR 100 crore. Out of which INR 25 crore will be equity and the rest will be raised from foreign funding.
About the Management:
Mr.C.C.Reddy,ChairmanMr.C.C.Reddy started his practice as an Attorney in the year 1960. He was a Member of the Communist Party of India and a State Leader in the Trade Union Movement. Mr.Reddy was exposed to International Law and in late 60s, he represented India in various International Law Conferences held in Moscow, Berlin and Helsinki under the leadership of the Legendary Mr.V.K. Krishna Menon.
In 1973, he moved to the United States of America as an Immigrant and there he headed various International business corporations as Chief Executive. He had exclusive trade relations with both East and West European countries. During this period, he was a Member of the U.S. Technology Transfer society, U.S. Chamber of Commerce and Australian Chamber of Commerce. He also was a Special Invitee to the African National Congress and he addressed the ANC in Johannesburg, South Africa.
In 1983 he established Visu Consultants Limited in India which is today known as Visu International Limited. Visu International Limited is the Flagship Company of the Visu Group of Companies with its offices in 20 countries and has 2000 employees across the Globe. Visu Group deals in Education, Software, Manufacturing in 8 countries in Africa, Trading from Hong Kong and China with Retail Operations in India and Africa.
Mr.Reddy is a Member of the Osmania University Academic Senate. While in U.S.A he has been a keen observer of the U.S. political system and believes that some of the electoral practices could apply to Indian political system.
In the recent elections, he has been named as the Vice Chairman of the A.P. Congress Committee Campaign Committee. Mr.Reddy conceived, designed and telecast the campaign material. The efficacy of the campaign materials resulted in a land-slide victory for the Congress Party. Mr.Reddy has been appointed as Advisor to the Government of A.P. on Foreign Investments and NRI affairs. In fulfilling this responsibility and in order to benefit the farming community of A.P. in particular, Mr.Reddy is in the process of finalizing a lucrative Agricultural Development Scheme in African Countries where the A.P.Farmers would be relocated for using their skills and making their personal fortunes as other expatriates have done for centuries in these countries. Mr.Reddy is also helping in sourcing foreign investments from foreign countries for developmental projects in A.P.
Mr.Reddy has also entered into production of Feature Films and TV serials. One Telugu feature film is ready for release and production for two more films is going to start very soon. Mr.Reddy has plans to regularly produce feature films under the banner of Visu Films International.
At present CMP of INR 5.55, the stock looks very attractive and it will give a 200-350% return in time duration of 1-2 years.
Positive Points for this stock for Up moving:
1) Company doing very good and available very cheep at INR 5.55/-
2) Book Value 25/-; Company Assets 79 Crores.
3) Company planning to invest 500 Crores various sectors.
4) Company Having Good Corporate house in Hyderabad Business center and good Land Bank.
5) Company releasing Telugu Movie Soon. So Mumbai operators are accumulating with a target of INR 50/-
6) Company Doing Education Business; expecting good news from company.
7) Company planning to declare more future plans.
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