To All my valuable Investors and followers.
Wish you and your family a Happy, Healthy & Prosperous Holi.
On Holi we chant: Holi I, Holi I, Holi I…. However, let us not just chant this rhyme; rather, let us truly pray to God that on this day “I” may become holy.
Let us pray that “I” may become pious, pure and devoted as Prahlad. In that way our lives and our hearts and our souls will be forever protected, forever sheltered at His holy feet.
As we chant “Holi I, Holi I, Holi I….” let us also pray that our “eye” may become holy, that we may be granted the divine vision by which we behold Him in all whom we see.
Let us pray that through our holy eye, we never are led toward anger, greed, lust or jealousy.
Let this holi be a time when we change not only the color of our faces, but the color of our hearts.
Let us not only "play" holi, but let us become holy.
Let the only color that truly penetrates our beings, be the color of god.
Monday, March 1, 2010
Thursday, February 4, 2010
Possible Causes for Market pain...Are we enough capable for sustainable growth
Well, today we will discuss more about the possible causes and market pain.We will also conclude on our capability for sustainable growth.
Domestic liquefied petroleum gas (LPG) consumers may soon have to pay Rs 100 more for every 14.2-kg cylinder if the report of the expert group on ‘A viable and sustainable system of pricing of petroleum products' headed by Mr Kirit S. Parikh is accepted.
The committee has also suggested a Rs 6/litre increase in price for kerosene sold under the public distribution system (PDS), implying a 66 per cent jump over the current price.
Deregulation
The committee has also pressed for complete deregulation of petrol and diesel prices. Currently, domestic LPG in Delhi is sold at Rs 281.20/cylinder, petrol Rs 44.72 a litre, and diesel Rs 32.92. The price of kerosene, which has not been revised since 2002, is at Rs 9.23 a litre.
At the current international crude prices, freeing petrol would result in an increase of Rs 3 a litre and diesel Rs 3-4. The Indian crude basket for the current fiscal till February 2 has averaged at $68.54 a barrel.
When asked whether these radical recommendations would receive the political nod, Mr Murli Deora, Minister for Petroleum and Natural Gas, said, “We are very keen not just to discuss but see what best can be done both for the consumers as well as the Government.”
The Petroleum Ministry is hopeful of processing the report in a few days, and presenting it to the Government.
Bridging the gap
If the recommendations are accepted, it will bring the under-recoveries of public sector oil marketing companies on petrol and diesel down to nil.
To contain the under-recoveries on account of cooking fuels, the committee has suggested that the first step is to rationalise allocation of PDS kerosene across the States and increase prices of both kerosene and domestic LPG, according to the report.
The next remedy suggested in the report is to bridge the financial gap arising due to under recoveries on the two products.
This could be done by mopping up part of the incremental income of ONGC and Oil India Ltd from production from their nomination blocks (non-NELP) and cash subsidy from the Budget.
The formula has been suggested by ONGC, according to which, if international prices go up from $70 to $140 a barrel, the amount of subsidy from the Central Government on LPG and kerosene will remain stable at Rs 20,000 crore.
Speaking to newspersons after submitting the report, Mr Parikh said, “A viable long-term strategy for pricing major petroleum products is required.
“A viable policy has to be workable over a wide range of international oil prices and has to meet the various objectives of the Government. It should limit the fiscal burden on the Government and keep the domestic oil industry financially healthy and competitive.”
Inflation effect
On whether the suggestions made by the committee will have any impact on inflation, Mr Parikh said, “These measures have become essential because if we don't do it today, fiscal deficit will go up, credit ratings will be affected, the borrowing cost will go up. So, the economy will have to bear the burden one way or the other.” (Source: BL)
Are we capable to guide our economy in better way?
It's better you should think on this chapter.Isn't it? Solution is in the system itself.
It will take possibly another 6-8 month time frame to see market at new high (<20,000)
What parameters will drive market hence forth?
1. Inflation
2. Oil prices.
3. Company's result.
4. Govt policy for alternative energy and Act to make it happens.
5. Budget
6. Global cues
7. Stimulas packages for textiles, aviation.
My questions:
Are WE capable to control inflation? I am talking about our TOP BOSS/Our GOVT.
What is our base? Agriculture!!!! It's not far away that we will have to purchase food from foreiegn. It's shame Guys!!!
Are we enough educated? If yes, then why we don't we select a right candidate to drive our nation.
Domestic liquefied petroleum gas (LPG) consumers may soon have to pay Rs 100 more for every 14.2-kg cylinder if the report of the expert group on ‘A viable and sustainable system of pricing of petroleum products' headed by Mr Kirit S. Parikh is accepted.
The committee has also suggested a Rs 6/litre increase in price for kerosene sold under the public distribution system (PDS), implying a 66 per cent jump over the current price.
Deregulation
The committee has also pressed for complete deregulation of petrol and diesel prices. Currently, domestic LPG in Delhi is sold at Rs 281.20/cylinder, petrol Rs 44.72 a litre, and diesel Rs 32.92. The price of kerosene, which has not been revised since 2002, is at Rs 9.23 a litre.
At the current international crude prices, freeing petrol would result in an increase of Rs 3 a litre and diesel Rs 3-4. The Indian crude basket for the current fiscal till February 2 has averaged at $68.54 a barrel.
When asked whether these radical recommendations would receive the political nod, Mr Murli Deora, Minister for Petroleum and Natural Gas, said, “We are very keen not just to discuss but see what best can be done both for the consumers as well as the Government.”
The Petroleum Ministry is hopeful of processing the report in a few days, and presenting it to the Government.
Bridging the gap
If the recommendations are accepted, it will bring the under-recoveries of public sector oil marketing companies on petrol and diesel down to nil.
To contain the under-recoveries on account of cooking fuels, the committee has suggested that the first step is to rationalise allocation of PDS kerosene across the States and increase prices of both kerosene and domestic LPG, according to the report.
The next remedy suggested in the report is to bridge the financial gap arising due to under recoveries on the two products.
This could be done by mopping up part of the incremental income of ONGC and Oil India Ltd from production from their nomination blocks (non-NELP) and cash subsidy from the Budget.
The formula has been suggested by ONGC, according to which, if international prices go up from $70 to $140 a barrel, the amount of subsidy from the Central Government on LPG and kerosene will remain stable at Rs 20,000 crore.
Speaking to newspersons after submitting the report, Mr Parikh said, “A viable long-term strategy for pricing major petroleum products is required.
“A viable policy has to be workable over a wide range of international oil prices and has to meet the various objectives of the Government. It should limit the fiscal burden on the Government and keep the domestic oil industry financially healthy and competitive.”
Inflation effect
On whether the suggestions made by the committee will have any impact on inflation, Mr Parikh said, “These measures have become essential because if we don't do it today, fiscal deficit will go up, credit ratings will be affected, the borrowing cost will go up. So, the economy will have to bear the burden one way or the other.” (Source: BL)
Are we capable to guide our economy in better way?
It's better you should think on this chapter.Isn't it? Solution is in the system itself.
It will take possibly another 6-8 month time frame to see market at new high (<20,000)
What parameters will drive market hence forth?
1. Inflation
2. Oil prices.
3. Company's result.
4. Govt policy for alternative energy and Act to make it happens.
5. Budget
6. Global cues
7. Stimulas packages for textiles, aviation.
My questions:
Are WE capable to control inflation? I am talking about our TOP BOSS/Our GOVT.
What is our base? Agriculture!!!! It's not far away that we will have to purchase food from foreiegn. It's shame Guys!!!
Are we enough educated? If yes, then why we don't we select a right candidate to drive our nation.
Sunday, January 31, 2010
My Strength V/s My Achievement. Do I justify myself? Let's think on it for a minute.
Do we still underestimate ourselves?
It becomes a big question in front of me.
Here is step by step analysis of our country’s economy in conjunction with US economy.
US Economy grows at 5.7 pct pace, fastest since 2003 - Wall Street
Economy grows for 2nd straight quarter at better-than-expected 5.7 pct rate, best since 2003
Christopher S. Rugaber, AP Economics Writer, On Friday January 29, 2010, 1:29 pm
WASHINGTON (AP) — The economy’s faster-than-expected growth at the end of last year, fueled by companies boosting output to keep stockpiles up, is likely to weaken as consumers keep a lid on spending.
The 5.7 percent annual growth rate in the fourth quarter was the fastest pace since 2003. It marked two straight quarters of growth after four quarters of decline. Growth exceeded expectations mainly because business spending on equipment and software jumped much more than forecast.
Still, economists expect growth to slow this year as companies finish restocking inventories and as government stimulus efforts fade. Many estimate the nation’s gross domestic product will grow 2.5 percent to 3 percent in the current quarter and about 2.5 percent or less for the full year.
That won’t be fast enough to significantly reduce the unemployment rate, now 10 percent. Most analysts expect the rate to keep rising for several months and remain close to 10 percent through the end of the year.
High unemployment and stagnant wage growth will likely keep consumers cautious about spending. Wages and benefits paid to U.S. workers posted a scant gain in the fourth quarter. And for all of last year, workers’ compensation rose by the smallest amount on records going back more than a quarter-century.
The economic recovery could falter if consumers, who account for 70 percent of economic activity, lack the income to ramp up spending.
“That’s why there’s so much hand-wringing right now,” said Brian Bethune, chief U.S. financial economist for IHS Global Insight. “Can the economy really sustain this? That’s the big question mark sitting out there.”
With hiring still weak, President Barack Obama has stepped up his focus on job creation. On Friday, he urged Congress to embrace his call for tax incentives to create jobs.
Obama wants to give companies a $5,000 tax credit for each net new worker they hire in 2010. Also, businesses that increase wages or hours for existing workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay.
“It’s time to put America back to work,” the president told workers at the Chesapeake Machine Company in Baltimore. But he acknowledged that “while these proposals will create jobs all across America, we’ve got a long way to go to make up for the millions of jobs that we lost in this recession.”
About 60 percent of the fourth quarter’s growth resulted from a sharp slowdown in the reduction of inventories as firms began to rebuild stockpiles depleted by the recession.
Changes to inventories added 3.4 percentage points to the fourth-quarter growth, the Commerce Department said in its report Friday. Excluding inventories, the economy would have grown at a 2.2 percent clip, the government said. That’s an improvement from 1.5 percent in the third quarter.
Consumer spending rose 2 percent, down from a 2.8 percent rise in the third quarter. It added 1.4 percentage points to GDP growth.
A steep increase in exports also helped boost growth last quarter. The shipment of goods overseas rose 18.1 percent, far outpacing a 10.5 percent rise in imports. Net exports added 0.5 percentage point to GDP.
Government spending was actually a slight drag on growth in the fourth quarter: A small increase in federal spending was outweighed by a drop in state and local spending.
Still, federal government spending is likely to pick up and add to growth in the first quarter, Bethune said.
Business spending will likely boost economic growth for several quarters, Bethune said, though not likely enough to make up for sluggish consumer spending. Many companies are upgrading computers, cell phones and machinery as their equipment needs to be replaced just to maintain current levels of production.
In addition, many businesses have healthy balance sheets and don’t need to pay off the large debts that households are struggling with, Bethune added.
For now, the growing economy is benefiting companies up and down the supply chain. Ford Motor Co. this week reported higher fourth-quarter sales and its first annual profit in four years, as it recovers from the devastating downturn the auto industry.
Ford’s “recent success has benefited us,” said Tom Schumann, general manager of EC Kitzel & Sons Inc., a small cutting tool fabricator based in Cleveland, Ohio.
The company, which has 30 employees, bought a new machine tool in December and hired a new worker to run it, the company’s first hire since last spring. Still, many of the company’s suppliers are struggling.
“I’m not totally convinced we’re out of the woods yet,” Schumann said, referring to the economy.
Friday’s report is the first of the government’s three estimates of gross domestic product and is likely to be revised. The government initially estimated third quarter growth was 3.5 percent, which was later revised down to 2.2 percent. The next estimate will be released Feb. 26.
The report provided an upbeat end to an otherwise dismal year: The nation’s economy declined 2.4 percent in 2009, the largest drop since 1946. That’s the first annual decline since 1991.
Source: Yahoo finance
Now let’s start to talk about my own country.
My countrymen are they positive enough to drive country’s economy in correct way?
Do we have potential to prove on paper we are going to become third largest economy worldwide?
Are you using proper guidelines to make our country strong?
Are we really adapting western culture in large extent? I am not an economist.
We Indian fundamentally and strategically quite correct hence I could expect to make it happen within 5 years.
We have enough resources which are cheap and best in quality.
We have good banking system.
Instead of all these reason our stock market still depends on European market.
We have lots of intellectual property on non-conventional energy sources.
Let’s go back to history to understand our strength, our civilization.
The first great Indian civilization
From the start of the fourth millennium BC, the individuality of early village cultures began to be replaced by a more homogeneous style of pottery at a large number of sites throughout the Indus Valley; by the middle of the third millennium, a uniform culture had developed at settlements spread across nearly 1,280,000 square kilometres, including parts of the Punjab, Uttar Pradesh, Gujarat, Baluchistan, the Sind and the Makran coast. Two great cities on the Indus, Harappa in the north and Mohenjo Daro in the south, were supported by the agricultural surplus produced by such settlements. Recent archeological research has unearthed further sites, almost as large as the first two and designed on the same plan, at Kalibangan, on the border of India and Pakistan, at Kot Diji east of Mohenjo Daro, at Chanhu Daro further south on the Indus, and at Lothal in Gujarat.
The emergence of the first great Indian civilization, around 2500 BC, is almost as remarkable as its stability for nearly a thousand years. All the cities were built with baked bricks of the same size; the streets were laid out in a grid with an elaborate system of covered drains; and the houses, some with more than one storey, are large. Vast granaries and a citadel built on higher ground with a gigantic adjoining bath at Mohenjo Daro, together with the absence of royal palaces and the large numbers of religious figurines, suggest that it was a theocratic state of priests, merchants and farmers.
By now, farmers had domesticated various animals, including hump-backed (Brahmani) cattle, goats, water buffaloes and fowls. They cultivated wheat, barley, peas and sesamum, and were also probably the first to grow and make clothes from cotton. Excavations at Lothal have uncovered a harbour; merchants were certainly involved in extensive trading by both sea and land, for they imported metals, including gold, silver and copper, and semiprecious stones from the Indian peninsula, Persia, Afghanistan, central Asia and Mesopotamia. While the main export was probably cotton yarn or cloth, they may have exported surplus grain as well. Indus seals found at Ur confirm the continuity of trading links with Sumer between 2300 and 2000 BC.
The sheer quantity of seals discovered in the Indus cities suggests that each merchant or mercantile family had its own. They're usually square, and made of steatite (a kind of soapstone), engraved and then hardened by heating. All bear inscriptions, which remain undeciphered, although nearly 400 different characters have been identified. The emblems beneath the inscriptions - iconographic scenes and animals, such as the bull, buffalo, goat, tiger and elephant - are more enlightening. One of the most notable depicts a horned deity sitting cross-legged in an ithyphallic posture, surrounded by a tiger, an elephant, a rhinoceros, a water buffalo and two deer. He appears on two other seals, and it seems certain that he was a fertility god; indeed, he has been called a "proto-Shiva" because of the resemblance to Pashupati, the Lord of the Beasts, a major representation of the fully developed Hindu god, . Other seals provide evidence that certain trees, especially the peepal, were worshipped, and thus anticipate their sacred status in the Hindu and Buddhist religions.
No monumental sculpture survives, but large numbers of human figurines have been discovered, including a steatite bust of a man thought to be a priest, a striking bronze "dancing girl", brilliantly naturalistic models of animals, and countless terracotta statuettes of a Mother Goddess. This goddess is thought to have been worshipped in nearly every home of the common people, but the crude style of modelling suggests that she was not part of the cult of the priestly elite.
The sudden demise of the Indus civilization in the last quarter of the second millennium BC used to be explained by invasions of barbarian tribes from the northwest; but recent research has established that tectonic upheavals in about 1700 BC caused a series of floods, and these are now considered primarily to blame.
Guys we may find out some answer of my question from SWAMIJI’s thoughts which he had expressed and complied together in “The Future of India”
Did you follow SWAMIJI? Or We couldn’t even understand his thoughts, philosophy beyond of his each statement he commented more than 100 years back.
Did you find out solution for reason which he found out early age of India’s modern civilization?
Do we literate ourselves to understand our key strength and potential?
Lots of questions are still roaming inside my brain but no perfect solution yet.
1. The Future Of India
o Excerpts From Swami Vivekananda famous lecture “The Future Of India”
2. India
o This is the ancient land where wisdom made its home before it went into any other country…
o Here is the same India whose soil has been trodden by the feet of the greatest sages that ever lived.
o Here first sprang up inquiries into the nature of man and into the internal world.
o This is the land from whence, like the tidal waves, spirituality and philosophy have again and again rushed out and deluged the world..
o It is the same land which stands firmer than any rock in the world, with its undying vigor, indestructible life. Its life is of the same nature as the soul, without beginning and without end, immortal; and we are the children of such a country.
3. Problems before India
o The problems in India are more complicated, more momentous, than the problems in any other country.
o The elements which compose the nations of the world are indeed very few, taking race after race, compared to this country. Here have been the Aryan, the Dravidian, the Tartar, the Turk, the Mogul, the European — all the nations of the world, as it were, pouring their blood into this land.
o Of languages the most wonderful conglomeration is here; of manners and customs there is more difference between two Indian races than between the European and the Eastern races.
4. Our Common Ground
o The one common ground that we have is our sacred tradition, our religion. That is the only common ground, and upon that we shall have to build.
o The unity in religion, therefore, is absolutely necessary as the first condition of the future of India.
o We know that our religion has certain common grounds, common to all our sects …what we want is to bring out these lifegiving common principles of our religion, and let every man, woman, and child, throughout the length and breadth of this country, understand them, know them, and try to bring them out in their lives.
o This is the first step; and, therefore, it has to be taken.
5. Do not quarrel within !
o The first plank in the making of a future India, the first step that is to be hewn out of that rock of ages, is this unification of religion.
o All of us have to be taught that we Hindus — dualists, qualified monists, or monists, Shaivas, Vaishnavas, or Pâshupatas — to whatever denomination we may belong, have certain common ideas behind us, and that the time has come when for the well-being of ourselves, for the well-being of our race, we must give up all our little quarrels and differences.
o the more you go on fighting and quarrelling about all trivialities such as "Dravidian" and "Aryan", and the question of Brahmins and non-Brahmins and all that, the further you are off from that accumulation of energy and power which is going to make the future India.
o With the giving up of quarrels all other improvements will come.
6. Lift Up The Masses !
o My idea is first of all to bring out the gems of spirituality that are stored up in our books and in the possession of a few only, hidden, as it were, in monasteries and in forests — to bring them out; to bring the knowledge out of them..
o ..in one word, I want to make them popular. I want to bring out these ideas and let them be the common property of all, of every man in India, whether he knows the Sanskrit language or not.
o the ideas must be taught in the language of the people; at the same time, Sanskrit education must go on along with it,..
o Teach the masses in the vernaculars, give them ideas; they will get information, but something more is necessary; give them culture. Until you give them that, there can be no permanence in the raised condition of the masses.
7. Solution To Caste Problem
o Shame upon them that such wicked and diabolical customs are allowed; their own children are allowed to die of starvation, but as soon as they take up some other religion they are well fed.
o The solution is not by bringing down the higher, but by raising the lower up to the level of the higher.
o What is the plan? The ideal at one end is the Brahmin and the ideal at the other end is the Chandâla, and the whole work is to raise the Chandala up to the Brahmin. Slowly and slowly you find more and more privileges granted to them.
o It is the duty of the Brahmin, therefore, to work for the salvation of the rest of mankind in India. If he does that, and so long as he does that, he is a Brahmin, but he is no Brahmin when he goes about making money.
8. Organize !
o Why is it that organizations are so powerful? Do not say organization is material. Why is it, to take a case in point, that forty millions of Englishmen rule three hundred millions of people here? What is the psychological explanation?
o These forty millions put their wills together and that means infinite power, and you three hundred millions have a will each separate from the other.
o Therefore to make a great future India, the whole secret lies in organization, accumulation of power, co-ordination of wills.
9. Worship the mother !
o For the next fifty years this alone shall be our keynote — this, our great Mother India. Let all other vain gods disappear for the time from our minds. This is the only god that is awake, our own race — "everywhere his hands, everywhere his feet, everywhere his ears, he covers everything."
o The first of all worship is the worship of the Virat — of those all around us. Worship It.
o These we have to worship, instead of being jealous of each other and fighting each other.
One can understand and guess the reason why we are still lugging behind of our milestone.
Anyway we now come to a conclusion that India to be 3rd economy by 2020.
But my question is still kept unanswered. Why don’t we achieve by 2015, it’s not loot late.
(India to be 3rd largest economy by 2020: Pant)
India is poised to become the world's third-largest economy by 2020, three decades before the Goldman Sachs estimate, said K C Pant in Hyderabad on Wednesday.
In his keynote address at the Tenth Partnership Summit organised by the Confederation of Indian Industry, Pant said a recent study by Goldman Sachs on the growth prospects of four leading developing and transition economies -- Brazil, Russia, India and China (collectively termed as BRICs) -- had predicted that India would be the third largest economy in the world by 2050, after China and the United States.
The study forecast that India would grow more or less steadily at 5.5 to 6 per cent per annum and would continue this trajectory even beyond 2050, when all the other major countries would have slowed down to a 3 per cent or less growth rate.
"Though our past performance and the prognoses for the future are a source of pride for us, we do not think that they should be a cause for complacency. India's Tenth Five-Year Plan, which spans 2002 to 2007, aims to make India the fastest-growing economy in the world by the end of this period," he said.
"We believe that the country has the potential to record an average growth rate of 8 per cent per annum during these five years, rising to above 9 per cent in the terminal year," he added.
"Our optimism appears to have been vindicated by the recent performance of the economy. In the second quarter of this year, our GDP (gross domestic product) has increased by 8.4 per cent, and it is expected to grow at over 9 per cent in the next two quarters," he said.
"The most heartening feature of this growth has been the performance of our brick and mortar sectors, which have demonstrated a high degree of vitality that gives us the confidence about the future," Pant said.
He said that India had been one of the 10 fastest-growing economies in the world in the last two decades and the future may be even better than the past.
In the past, economic infrastructure, such as railways, ports, national roads and power were all provided exclusively by the public sector. "In the future, we see these areas being opened up to the private sector to the extent that the private sector displays its willingness, but this varies from sector to sector -- a fact that we need to keep in mind," he noted.
Referring to the financial sector, he said that foreign portfolio investors have recognised the strength and potential of the Indian capital markets and have poured in over $7 billion last year.
"Although India's presence has improved significantly in the international investors' radar screen in recent years, there is still a long way to go before it can be taken for granted. This is especially true for a number of sectors in which India's requirements may be at variance with international investor perceptions," he explained.
Pant said that the Planning Commission had set up a high-level Steering Group on Foreign Direct Investment and its report was presently under active consideration of the Union government.
An empowered committee, consisting of Union ministers and state chief ministers, was also set up to draw up a blueprint for creating an investor-friendly environment and to oversee its implementation.
"This is the first time that a major reforms programme will explicitly reflect the federal nature of our political system and will be guided at the highest political level," he pointed out.
It becomes a big question in front of me.
Here is step by step analysis of our country’s economy in conjunction with US economy.
US Economy grows at 5.7 pct pace, fastest since 2003 - Wall Street
Economy grows for 2nd straight quarter at better-than-expected 5.7 pct rate, best since 2003
Christopher S. Rugaber, AP Economics Writer, On Friday January 29, 2010, 1:29 pm
WASHINGTON (AP) — The economy’s faster-than-expected growth at the end of last year, fueled by companies boosting output to keep stockpiles up, is likely to weaken as consumers keep a lid on spending.
The 5.7 percent annual growth rate in the fourth quarter was the fastest pace since 2003. It marked two straight quarters of growth after four quarters of decline. Growth exceeded expectations mainly because business spending on equipment and software jumped much more than forecast.
Still, economists expect growth to slow this year as companies finish restocking inventories and as government stimulus efforts fade. Many estimate the nation’s gross domestic product will grow 2.5 percent to 3 percent in the current quarter and about 2.5 percent or less for the full year.
That won’t be fast enough to significantly reduce the unemployment rate, now 10 percent. Most analysts expect the rate to keep rising for several months and remain close to 10 percent through the end of the year.
High unemployment and stagnant wage growth will likely keep consumers cautious about spending. Wages and benefits paid to U.S. workers posted a scant gain in the fourth quarter. And for all of last year, workers’ compensation rose by the smallest amount on records going back more than a quarter-century.
The economic recovery could falter if consumers, who account for 70 percent of economic activity, lack the income to ramp up spending.
“That’s why there’s so much hand-wringing right now,” said Brian Bethune, chief U.S. financial economist for IHS Global Insight. “Can the economy really sustain this? That’s the big question mark sitting out there.”
With hiring still weak, President Barack Obama has stepped up his focus on job creation. On Friday, he urged Congress to embrace his call for tax incentives to create jobs.
Obama wants to give companies a $5,000 tax credit for each net new worker they hire in 2010. Also, businesses that increase wages or hours for existing workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay.
“It’s time to put America back to work,” the president told workers at the Chesapeake Machine Company in Baltimore. But he acknowledged that “while these proposals will create jobs all across America, we’ve got a long way to go to make up for the millions of jobs that we lost in this recession.”
About 60 percent of the fourth quarter’s growth resulted from a sharp slowdown in the reduction of inventories as firms began to rebuild stockpiles depleted by the recession.
Changes to inventories added 3.4 percentage points to the fourth-quarter growth, the Commerce Department said in its report Friday. Excluding inventories, the economy would have grown at a 2.2 percent clip, the government said. That’s an improvement from 1.5 percent in the third quarter.
Consumer spending rose 2 percent, down from a 2.8 percent rise in the third quarter. It added 1.4 percentage points to GDP growth.
A steep increase in exports also helped boost growth last quarter. The shipment of goods overseas rose 18.1 percent, far outpacing a 10.5 percent rise in imports. Net exports added 0.5 percentage point to GDP.
Government spending was actually a slight drag on growth in the fourth quarter: A small increase in federal spending was outweighed by a drop in state and local spending.
Still, federal government spending is likely to pick up and add to growth in the first quarter, Bethune said.
Business spending will likely boost economic growth for several quarters, Bethune said, though not likely enough to make up for sluggish consumer spending. Many companies are upgrading computers, cell phones and machinery as their equipment needs to be replaced just to maintain current levels of production.
In addition, many businesses have healthy balance sheets and don’t need to pay off the large debts that households are struggling with, Bethune added.
For now, the growing economy is benefiting companies up and down the supply chain. Ford Motor Co. this week reported higher fourth-quarter sales and its first annual profit in four years, as it recovers from the devastating downturn the auto industry.
Ford’s “recent success has benefited us,” said Tom Schumann, general manager of EC Kitzel & Sons Inc., a small cutting tool fabricator based in Cleveland, Ohio.
The company, which has 30 employees, bought a new machine tool in December and hired a new worker to run it, the company’s first hire since last spring. Still, many of the company’s suppliers are struggling.
“I’m not totally convinced we’re out of the woods yet,” Schumann said, referring to the economy.
Friday’s report is the first of the government’s three estimates of gross domestic product and is likely to be revised. The government initially estimated third quarter growth was 3.5 percent, which was later revised down to 2.2 percent. The next estimate will be released Feb. 26.
The report provided an upbeat end to an otherwise dismal year: The nation’s economy declined 2.4 percent in 2009, the largest drop since 1946. That’s the first annual decline since 1991.
Source: Yahoo finance
Now let’s start to talk about my own country.
My countrymen are they positive enough to drive country’s economy in correct way?
Do we have potential to prove on paper we are going to become third largest economy worldwide?
Are you using proper guidelines to make our country strong?
Are we really adapting western culture in large extent? I am not an economist.
We Indian fundamentally and strategically quite correct hence I could expect to make it happen within 5 years.
We have enough resources which are cheap and best in quality.
We have good banking system.
Instead of all these reason our stock market still depends on European market.
We have lots of intellectual property on non-conventional energy sources.
Let’s go back to history to understand our strength, our civilization.
The first great Indian civilization
From the start of the fourth millennium BC, the individuality of early village cultures began to be replaced by a more homogeneous style of pottery at a large number of sites throughout the Indus Valley; by the middle of the third millennium, a uniform culture had developed at settlements spread across nearly 1,280,000 square kilometres, including parts of the Punjab, Uttar Pradesh, Gujarat, Baluchistan, the Sind and the Makran coast. Two great cities on the Indus, Harappa in the north and Mohenjo Daro in the south, were supported by the agricultural surplus produced by such settlements. Recent archeological research has unearthed further sites, almost as large as the first two and designed on the same plan, at Kalibangan, on the border of India and Pakistan, at Kot Diji east of Mohenjo Daro, at Chanhu Daro further south on the Indus, and at Lothal in Gujarat.
The emergence of the first great Indian civilization, around 2500 BC, is almost as remarkable as its stability for nearly a thousand years. All the cities were built with baked bricks of the same size; the streets were laid out in a grid with an elaborate system of covered drains; and the houses, some with more than one storey, are large. Vast granaries and a citadel built on higher ground with a gigantic adjoining bath at Mohenjo Daro, together with the absence of royal palaces and the large numbers of religious figurines, suggest that it was a theocratic state of priests, merchants and farmers.
By now, farmers had domesticated various animals, including hump-backed (Brahmani) cattle, goats, water buffaloes and fowls. They cultivated wheat, barley, peas and sesamum, and were also probably the first to grow and make clothes from cotton. Excavations at Lothal have uncovered a harbour; merchants were certainly involved in extensive trading by both sea and land, for they imported metals, including gold, silver and copper, and semiprecious stones from the Indian peninsula, Persia, Afghanistan, central Asia and Mesopotamia. While the main export was probably cotton yarn or cloth, they may have exported surplus grain as well. Indus seals found at Ur confirm the continuity of trading links with Sumer between 2300 and 2000 BC.
The sheer quantity of seals discovered in the Indus cities suggests that each merchant or mercantile family had its own. They're usually square, and made of steatite (a kind of soapstone), engraved and then hardened by heating. All bear inscriptions, which remain undeciphered, although nearly 400 different characters have been identified. The emblems beneath the inscriptions - iconographic scenes and animals, such as the bull, buffalo, goat, tiger and elephant - are more enlightening. One of the most notable depicts a horned deity sitting cross-legged in an ithyphallic posture, surrounded by a tiger, an elephant, a rhinoceros, a water buffalo and two deer. He appears on two other seals, and it seems certain that he was a fertility god; indeed, he has been called a "proto-Shiva" because of the resemblance to Pashupati, the Lord of the Beasts, a major representation of the fully developed Hindu god, . Other seals provide evidence that certain trees, especially the peepal, were worshipped, and thus anticipate their sacred status in the Hindu and Buddhist religions.
No monumental sculpture survives, but large numbers of human figurines have been discovered, including a steatite bust of a man thought to be a priest, a striking bronze "dancing girl", brilliantly naturalistic models of animals, and countless terracotta statuettes of a Mother Goddess. This goddess is thought to have been worshipped in nearly every home of the common people, but the crude style of modelling suggests that she was not part of the cult of the priestly elite.
The sudden demise of the Indus civilization in the last quarter of the second millennium BC used to be explained by invasions of barbarian tribes from the northwest; but recent research has established that tectonic upheavals in about 1700 BC caused a series of floods, and these are now considered primarily to blame.
Guys we may find out some answer of my question from SWAMIJI’s thoughts which he had expressed and complied together in “The Future of India”
Did you follow SWAMIJI? Or We couldn’t even understand his thoughts, philosophy beyond of his each statement he commented more than 100 years back.
Did you find out solution for reason which he found out early age of India’s modern civilization?
Do we literate ourselves to understand our key strength and potential?
Lots of questions are still roaming inside my brain but no perfect solution yet.
1. The Future Of India
o Excerpts From Swami Vivekananda famous lecture “The Future Of India”
2. India
o This is the ancient land where wisdom made its home before it went into any other country…
o Here is the same India whose soil has been trodden by the feet of the greatest sages that ever lived.
o Here first sprang up inquiries into the nature of man and into the internal world.
o This is the land from whence, like the tidal waves, spirituality and philosophy have again and again rushed out and deluged the world..
o It is the same land which stands firmer than any rock in the world, with its undying vigor, indestructible life. Its life is of the same nature as the soul, without beginning and without end, immortal; and we are the children of such a country.
3. Problems before India
o The problems in India are more complicated, more momentous, than the problems in any other country.
o The elements which compose the nations of the world are indeed very few, taking race after race, compared to this country. Here have been the Aryan, the Dravidian, the Tartar, the Turk, the Mogul, the European — all the nations of the world, as it were, pouring their blood into this land.
o Of languages the most wonderful conglomeration is here; of manners and customs there is more difference between two Indian races than between the European and the Eastern races.
4. Our Common Ground
o The one common ground that we have is our sacred tradition, our religion. That is the only common ground, and upon that we shall have to build.
o The unity in religion, therefore, is absolutely necessary as the first condition of the future of India.
o We know that our religion has certain common grounds, common to all our sects …what we want is to bring out these lifegiving common principles of our religion, and let every man, woman, and child, throughout the length and breadth of this country, understand them, know them, and try to bring them out in their lives.
o This is the first step; and, therefore, it has to be taken.
5. Do not quarrel within !
o The first plank in the making of a future India, the first step that is to be hewn out of that rock of ages, is this unification of religion.
o All of us have to be taught that we Hindus — dualists, qualified monists, or monists, Shaivas, Vaishnavas, or Pâshupatas — to whatever denomination we may belong, have certain common ideas behind us, and that the time has come when for the well-being of ourselves, for the well-being of our race, we must give up all our little quarrels and differences.
o the more you go on fighting and quarrelling about all trivialities such as "Dravidian" and "Aryan", and the question of Brahmins and non-Brahmins and all that, the further you are off from that accumulation of energy and power which is going to make the future India.
o With the giving up of quarrels all other improvements will come.
6. Lift Up The Masses !
o My idea is first of all to bring out the gems of spirituality that are stored up in our books and in the possession of a few only, hidden, as it were, in monasteries and in forests — to bring them out; to bring the knowledge out of them..
o ..in one word, I want to make them popular. I want to bring out these ideas and let them be the common property of all, of every man in India, whether he knows the Sanskrit language or not.
o the ideas must be taught in the language of the people; at the same time, Sanskrit education must go on along with it,..
o Teach the masses in the vernaculars, give them ideas; they will get information, but something more is necessary; give them culture. Until you give them that, there can be no permanence in the raised condition of the masses.
7. Solution To Caste Problem
o Shame upon them that such wicked and diabolical customs are allowed; their own children are allowed to die of starvation, but as soon as they take up some other religion they are well fed.
o The solution is not by bringing down the higher, but by raising the lower up to the level of the higher.
o What is the plan? The ideal at one end is the Brahmin and the ideal at the other end is the Chandâla, and the whole work is to raise the Chandala up to the Brahmin. Slowly and slowly you find more and more privileges granted to them.
o It is the duty of the Brahmin, therefore, to work for the salvation of the rest of mankind in India. If he does that, and so long as he does that, he is a Brahmin, but he is no Brahmin when he goes about making money.
8. Organize !
o Why is it that organizations are so powerful? Do not say organization is material. Why is it, to take a case in point, that forty millions of Englishmen rule three hundred millions of people here? What is the psychological explanation?
o These forty millions put their wills together and that means infinite power, and you three hundred millions have a will each separate from the other.
o Therefore to make a great future India, the whole secret lies in organization, accumulation of power, co-ordination of wills.
9. Worship the mother !
o For the next fifty years this alone shall be our keynote — this, our great Mother India. Let all other vain gods disappear for the time from our minds. This is the only god that is awake, our own race — "everywhere his hands, everywhere his feet, everywhere his ears, he covers everything."
o The first of all worship is the worship of the Virat — of those all around us. Worship It.
o These we have to worship, instead of being jealous of each other and fighting each other.
One can understand and guess the reason why we are still lugging behind of our milestone.
Anyway we now come to a conclusion that India to be 3rd economy by 2020.
But my question is still kept unanswered. Why don’t we achieve by 2015, it’s not loot late.
(India to be 3rd largest economy by 2020: Pant)
India is poised to become the world's third-largest economy by 2020, three decades before the Goldman Sachs estimate, said K C Pant in Hyderabad on Wednesday.
In his keynote address at the Tenth Partnership Summit organised by the Confederation of Indian Industry, Pant said a recent study by Goldman Sachs on the growth prospects of four leading developing and transition economies -- Brazil, Russia, India and China (collectively termed as BRICs) -- had predicted that India would be the third largest economy in the world by 2050, after China and the United States.
The study forecast that India would grow more or less steadily at 5.5 to 6 per cent per annum and would continue this trajectory even beyond 2050, when all the other major countries would have slowed down to a 3 per cent or less growth rate.
"Though our past performance and the prognoses for the future are a source of pride for us, we do not think that they should be a cause for complacency. India's Tenth Five-Year Plan, which spans 2002 to 2007, aims to make India the fastest-growing economy in the world by the end of this period," he said.
"We believe that the country has the potential to record an average growth rate of 8 per cent per annum during these five years, rising to above 9 per cent in the terminal year," he added.
"Our optimism appears to have been vindicated by the recent performance of the economy. In the second quarter of this year, our GDP (gross domestic product) has increased by 8.4 per cent, and it is expected to grow at over 9 per cent in the next two quarters," he said.
"The most heartening feature of this growth has been the performance of our brick and mortar sectors, which have demonstrated a high degree of vitality that gives us the confidence about the future," Pant said.
He said that India had been one of the 10 fastest-growing economies in the world in the last two decades and the future may be even better than the past.
In the past, economic infrastructure, such as railways, ports, national roads and power were all provided exclusively by the public sector. "In the future, we see these areas being opened up to the private sector to the extent that the private sector displays its willingness, but this varies from sector to sector -- a fact that we need to keep in mind," he noted.
Referring to the financial sector, he said that foreign portfolio investors have recognised the strength and potential of the Indian capital markets and have poured in over $7 billion last year.
"Although India's presence has improved significantly in the international investors' radar screen in recent years, there is still a long way to go before it can be taken for granted. This is especially true for a number of sectors in which India's requirements may be at variance with international investor perceptions," he explained.
Pant said that the Planning Commission had set up a high-level Steering Group on Foreign Direct Investment and its report was presently under active consideration of the Union government.
An empowered committee, consisting of Union ministers and state chief ministers, was also set up to draw up a blueprint for creating an investor-friendly environment and to oversee its implementation.
"This is the first time that a major reforms programme will explicitly reflect the federal nature of our political system and will be guided at the highest political level," he pointed out.
Saturday, January 30, 2010
Why did I take entry in Stock Market: My Philosophy and Guidelines
I entered in the stock market in the year of 2003.I wanted to become a doctor as I was a good student once in my childhood.I never stood second in my class and I was so fascinated towards my career. My parents are very conservative, traditional and disciplined. I started to read Economic Times, Times of India, Statesman, and Ananda Bazar Patrika from my early age i.e. 14 yrs.
I was unable to understand the happenings in the industries’ thought stock market, a gambling station where people earn some money. The first stock I was interested US 64/Unit Trust mutual fund as my dad was holding that stock. Unfortunately he couldn't materialize profits from it. I was not happy from that incidence. Then suddenly I got busy in establishing my career in JEE/AIJEE etc and I took admission in engineering college. Why did I do so many degrees, PG degree, and certification? Is it to prove myself a good Engineer? I must say this is not true. Actually I wanted to develop some logic and my own philosophy in conjuction with some guidelines to establish myself at comfort zone.
Anyhow I got entry first time in the stock market in mid of 2003.I never wanted to be a broker, rather I wanted to be a business analyst. I could earn as I can by rolling my stuffs in large scale. But believe me guys I never wanted to earn money in wrong way. I wanted to judge my own philosophy and to execute my own innovation in correct way. I learnt so many things from the stock market which I can’t express in short duration. I saw ups and downs across the market." Earning money is not the only motto, judge yourself and confirm you earn money by virtue of your knowledge".
Still on today I don't expect single penny coming to my pocket without any efforts. I recommended lots of company which gave average 15 times return over the period of time.
My recommended almost 20 Multibagger Stocks as on today. Here is tow examples for the same.
Mukesh Babu....from Rs 2 to Rs 55
Core Projects & technologies: from Rs 0.75 to Rs 300.
My philosophy and fundamental suggest me to guide people and make them literate in market and establish my own guidelines for the same. I always prefer small cap and penny stocks rather than Large Cap. Why so?
I like to admire some one's capability and I always pay respect irrespective of their age and family background. I like innovative and hard work people. Street Cleaner is more respectable than a lazy architect. Isn't it guys? Like that way I respect true company irrespective of their CMP and market capital.
It's very simple to find out a true company as to find out a real life partner.
If anyone can find a real life partner he/she has the capacity to select a strong company for future. Following are the things that decide while you are choosing a company.
Company's fundamentals
Business Approach
Aggressiveness towards customer> Customer focus.
Mission and Vision.
Result oriented.
Management profile.
Past records.
Share holding pattern etc..........
There are following advantages on investing in small cap stock:
1. Higher Growth
2. Greater universe of opportunities
3. Inefficient market
4. In-Depth Research can make the difference
When looking at investment options, I find it most helpful to first determine what your objectives are. Dependent on your objectives, small cap stocks could be ideal, but they also could be counter to your goals. Diversification is paramount to protect yourself against potential market volatility, but I would suggest first figuring out what your goals are, what your comfort with risk is, the time-frame you're looking at as far as needing access to the investment and then figuring out what investment strategies match well with your set of parameters.
My story will be continued for next month....
I was unable to understand the happenings in the industries’ thought stock market, a gambling station where people earn some money. The first stock I was interested US 64/Unit Trust mutual fund as my dad was holding that stock. Unfortunately he couldn't materialize profits from it. I was not happy from that incidence. Then suddenly I got busy in establishing my career in JEE/AIJEE etc and I took admission in engineering college. Why did I do so many degrees, PG degree, and certification? Is it to prove myself a good Engineer? I must say this is not true. Actually I wanted to develop some logic and my own philosophy in conjuction with some guidelines to establish myself at comfort zone.
Anyhow I got entry first time in the stock market in mid of 2003.I never wanted to be a broker, rather I wanted to be a business analyst. I could earn as I can by rolling my stuffs in large scale. But believe me guys I never wanted to earn money in wrong way. I wanted to judge my own philosophy and to execute my own innovation in correct way. I learnt so many things from the stock market which I can’t express in short duration. I saw ups and downs across the market." Earning money is not the only motto, judge yourself and confirm you earn money by virtue of your knowledge".
Still on today I don't expect single penny coming to my pocket without any efforts. I recommended lots of company which gave average 15 times return over the period of time.
My recommended almost 20 Multibagger Stocks as on today. Here is tow examples for the same.
Mukesh Babu....from Rs 2 to Rs 55
Core Projects & technologies: from Rs 0.75 to Rs 300.
My philosophy and fundamental suggest me to guide people and make them literate in market and establish my own guidelines for the same. I always prefer small cap and penny stocks rather than Large Cap. Why so?
I like to admire some one's capability and I always pay respect irrespective of their age and family background. I like innovative and hard work people. Street Cleaner is more respectable than a lazy architect. Isn't it guys? Like that way I respect true company irrespective of their CMP and market capital.
It's very simple to find out a true company as to find out a real life partner.
If anyone can find a real life partner he/she has the capacity to select a strong company for future. Following are the things that decide while you are choosing a company.
Company's fundamentals
Business Approach
Aggressiveness towards customer> Customer focus.
Mission and Vision.
Result oriented.
Management profile.
Past records.
Share holding pattern etc..........
There are following advantages on investing in small cap stock:
1. Higher Growth
2. Greater universe of opportunities
3. Inefficient market
4. In-Depth Research can make the difference
When looking at investment options, I find it most helpful to first determine what your objectives are. Dependent on your objectives, small cap stocks could be ideal, but they also could be counter to your goals. Diversification is paramount to protect yourself against potential market volatility, but I would suggest first figuring out what your goals are, what your comfort with risk is, the time-frame you're looking at as far as needing access to the investment and then figuring out what investment strategies match well with your set of parameters.
My story will be continued for next month....
Why do I like SMALL CAP & MID CAP rather than LARGE CAP: Investing in Small Cap Stocks for Growth and Return
Investing in Small Cap Stocks for Growth and Return
Small cap (or small capitalization) is a reference to a company’s market size. Small cap stocks are stocks from companies that have market capitalization (the number of shares outstanding multiplied by the price per share) of under $1 billion. Investors may face more risk with small caps, but they also have the chance for greater gains.
Out of all the types of stocks, small cap stocks continue to exhibit the greatest amount of growth. In the same way that a tree planted last year will have more opportunity for growth than a mature 100-year-old redwood, small caps have greater growth potential than established large cap stocks.
Of course, a small cap will not exhibit spectacular growth just because it’s small. It will grow when it does the right things, such as increasing sales and earnings by producing goods and services that customers want. As you consider small caps, keep these things in mind:
•An IPO is not a sure thing.
An initial public offering (IPO) is the first offering to the public of a company’s stock. The IPO is also referred to as “going public.” Because a company that is going public is frequently an unproven enterprise, investing in an IPO can be risky.
•If it’s a small cap stock, make sure it’s making money.
When you evaluate a company for stock investing, make sure that the company is established (being in business for at least three years is a good minimum) and that it’s profitable.
•Investing in small cap stocks requires analysis.
You need to do more research on small cap stocks than on large caps. Plenty of information is available on large cap stocks because they’re widely followed. Small cap stocks don’t get as much press, and fewer analysts issue reports on them.
Small cap (or small capitalization) is a reference to a company’s market size. Small cap stocks are stocks from companies that have market capitalization (the number of shares outstanding multiplied by the price per share) of under $1 billion. Investors may face more risk with small caps, but they also have the chance for greater gains.
Out of all the types of stocks, small cap stocks continue to exhibit the greatest amount of growth. In the same way that a tree planted last year will have more opportunity for growth than a mature 100-year-old redwood, small caps have greater growth potential than established large cap stocks.
Of course, a small cap will not exhibit spectacular growth just because it’s small. It will grow when it does the right things, such as increasing sales and earnings by producing goods and services that customers want. As you consider small caps, keep these things in mind:
•An IPO is not a sure thing.
An initial public offering (IPO) is the first offering to the public of a company’s stock. The IPO is also referred to as “going public.” Because a company that is going public is frequently an unproven enterprise, investing in an IPO can be risky.
•If it’s a small cap stock, make sure it’s making money.
When you evaluate a company for stock investing, make sure that the company is established (being in business for at least three years is a good minimum) and that it’s profitable.
•Investing in small cap stocks requires analysis.
You need to do more research on small cap stocks than on large caps. Plenty of information is available on large cap stocks because they’re widely followed. Small cap stocks don’t get as much press, and fewer analysts issue reports on them.
Another Multibagger from my desk in 2010
SBIL Details
Saamya Biotech (India) Limited engages in the manufacture and marketing of various chemicals, pharmaceuticals, drugs, and intermediates in India. It manufactures low volume and high value active bio-pharmaceutical ingredients, including daunomycin and hyaluronic acid–pharma grade and cosmetic grade. Its daunomycin is used for remission induction of acute lymphocytic leukaemia in combination with other drugs. The company’s hyaluronic acid acts as the natural moisturizing factor and used in cosmetics and as indictable in ophthalmic surgery and osteoarthritis treatments. Saamya Biotech (India) Limited was incorporated in 2002 and is based in Hyderabad, India
Saamya Biotech has entered into a joint venture agreement with Perak Bio Corporation Sdn. Bhd. (PBC) to setup a bio-pharmaceutical manufacturing unit in Perak state for Saamya Biotech (Malaysia) Sdn. Bhd, a subsidiary of the Indian company.
PBC is a company owned by state government of Perak in Malaysia. It has allotted 12.63 acres land to Saamya Biotech (Malaysia) Sdn. Bhd, for the said project towards the equity participation of Perak state government.
Saamya Biotech India is a Hyderabad-based company that manufactures and markets biopharmaceuticals and recombinant protein products of medical and industrial importance, and also to discover and develop emerging biotech products of far reaching significance.
Past Key developments for SAAMYA BIOTECH INDIA LTD (SBIL)
Saamya Biotech To Approve Fund Raising Through Postal Ballot
12/30/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the member of the Company will consider to approve the following resolution by way of Postal Ballot: To create issue, offer and allot (including with provisions for reservation on firm and/or competitive basis, of such part of issue and for such categories of persons including employees of the Company as may be permitted), Equity Shares and/or Equity Shares through depository receipts including American Depository Receipts (ADR), Global Depository Receipts (GDR) and/or Convertible Bonds (CB), Convertible Debentures (CD), fully or partly, and/or other securities convertible into Equity Shares at the option of the Company and/or the holder(s) of such securities, and/or securities linked to Equity Shares and/or securities with or without detachable/non-detachable warrants and/or warrants with a right exercisable by the warrant-holder to subscribe for Equity Shares and/or any instruments or securities representing either Equity Shares, secured premium notes, and/ or any other financial instruments which would be converted into/ exchanged with Equity Shares at a later date (Securities) as the Board at its sole discretion or in consultation with underwriters, merchant bankers, financial advisors or legal advisors may at any time decide, by way of one or more public, follow-on, preferential issues or private offerings in domestic and/or one or more international market(s), with or without a green shoe option, or private placement or issued /allotted through Qualified Institutions Placement in accordance with the Guidelines for Qualified Institutions Placement prescribed under Chapter XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines, 2000, read with SEBI (Issue Of Capital And Disclosure Requirements) Regulations, 2009 as amended, or by any one or more or a combination of the above model/methods or otherwise and at such time or times and in one or more tranches, whether rupee denominated or denominated in foreign currency, to any eligible Qualified Institutional Buyers including Foreign Institutional Investors, resident/ non-resident investors (whether institutions, incorporated bodies, mutual funds, individuals or otherwise), Venture Capital Funds (foreign or Indian), Indian and/or Multilateral Financial Institutions, Mutual Funds, Non-Resident Indians, stabilizing agents and/or any other categories of investors, whether they be holders of shares of the Company or not (collectively called the Investors) whether or not such Investors are members of the Company as may be deemed appropriate by the Board and permitted under applicable laws and regulations, resulting in the issue of an aggregate amount not exceeding $40 Millions or equivalent thereof and on such terms and conditions and timing of the issue(s)/offering(s) including the Investors to whom the Securities are to be issued, issue price, number of Securities to be issued, creation of mortgage/ charge in accordance with Section 293(1)[a) of the Companies Act, 1956 in respect of any Securities as may be required either on pari-passu basis or otherwise, the stock exchanges on which such Securities will be listed, finalization of allotment of the Securities on the basis of the subscriptions received, face value, rate of interest, redemption period, manner of redemption, amount of premium on redemption, the number of equity share to be allotted on redemption/conversion, the ratio, period of conversion, fixing of record date or book closure dates, and any other matter in connection with, or incidental to, the issue, in consultation with the merchant bankers or other advisors or otherwise, as the Board at its sole discretion may decide together with any amendments or modifications thereto, subject to necessary provisions & approvals.
Saamya Biotech Mulls Raising $40 Million
12/17/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the company on its meeting on December 17, 2009 has decided to issue, offer and allot further shares in all or any one or in combination of Equity Shares, GDR, ADR, Convertible Bonds / Debentures and / or other securities to the extent of $40 millions subject to approval of the members of the Company, to issue equity shares / warrants on preferential basis and to conduct postal ballot to accord consent of the Members of the Company for the aforesaid business.
Saamya Biotech To Mull Funding Options
12/14/2009
Saamya Biotech (India) Ltd. will be meeting on December 17, 2009 to consider issue further shares under GDR mechanism/ Preferential Allotment / QIB, etc., subject to approval of the members of the Company.
Stock History:
Volume 26,345
Prev Close 10.04
Day's H/L (Rs) 10.49 - 9.54
52wk H/L (Rs) 14.10 - 3.57
Mkt Cap (Rs Cr) 24.23
Project Progress:
Kedah Govt. of Malaysia agreed to provide 10 acre land in the Biotechnology park. A joint venture agreement with the Kedah state Govt. has been entered by the main promoter and collaborator, M/s Saamya Biotech (India) limited, in respect of land and equity participation. Govt. incentives for tax exemptions, Research grants, personnel training grant and permission for expatriate posts have also been obtained. Funding approvals from Federal Govt. and financial institutions are awaited.
The company entered into Technology transfer agreement with Saamya Biotech (India) Ltd., the main promoter company.
The parent and main promoter company, Saamya Biotech (India) Ltd. has entered into marketing agreement with Arch Pharmalabs Ltd., Mumbai, India for 100% marketing of the products that are manufactured by Saamya Biotech (Malaysia) Sdn. Bhd.
Saamya Biotech (India) Ltd., the parent and main promoter company, has signed an agreement with M/s Shapoorji Pallonji & Co. Ltd., Mumbai, India for execution of the project (construction/ basic and detailed engineering etc) on turnkey basis.
NOC from Pollution Control Board for establishing the facility, being planned.
Necessary statutory permissions from Malaysian Govt. will be obtained.
Conclusion:
Saamya Biotech is looking very attractive at this level.Guys pls keep your eyes open for this stock.I am very confident and optimistic this is one the way to become a multibagger in comming days. If thing goes in proper direction then I want to see Saamya Biotech at Rs 50-60 level within a year.
Currently it is trading at Rs 10.00. Go for it guys and it will enrich your portfolio.It can gives you atleast 10-15 times return in 2-3 years.
Saamya Biotech (India) Limited engages in the manufacture and marketing of various chemicals, pharmaceuticals, drugs, and intermediates in India. It manufactures low volume and high value active bio-pharmaceutical ingredients, including daunomycin and hyaluronic acid–pharma grade and cosmetic grade. Its daunomycin is used for remission induction of acute lymphocytic leukaemia in combination with other drugs. The company’s hyaluronic acid acts as the natural moisturizing factor and used in cosmetics and as indictable in ophthalmic surgery and osteoarthritis treatments. Saamya Biotech (India) Limited was incorporated in 2002 and is based in Hyderabad, India
Saamya Biotech has entered into a joint venture agreement with Perak Bio Corporation Sdn. Bhd. (PBC) to setup a bio-pharmaceutical manufacturing unit in Perak state for Saamya Biotech (Malaysia) Sdn. Bhd, a subsidiary of the Indian company.
PBC is a company owned by state government of Perak in Malaysia. It has allotted 12.63 acres land to Saamya Biotech (Malaysia) Sdn. Bhd, for the said project towards the equity participation of Perak state government.
Saamya Biotech India is a Hyderabad-based company that manufactures and markets biopharmaceuticals and recombinant protein products of medical and industrial importance, and also to discover and develop emerging biotech products of far reaching significance.
Past Key developments for SAAMYA BIOTECH INDIA LTD (SBIL)
Saamya Biotech To Approve Fund Raising Through Postal Ballot
12/30/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the member of the Company will consider to approve the following resolution by way of Postal Ballot: To create issue, offer and allot (including with provisions for reservation on firm and/or competitive basis, of such part of issue and for such categories of persons including employees of the Company as may be permitted), Equity Shares and/or Equity Shares through depository receipts including American Depository Receipts (ADR), Global Depository Receipts (GDR) and/or Convertible Bonds (CB), Convertible Debentures (CD), fully or partly, and/or other securities convertible into Equity Shares at the option of the Company and/or the holder(s) of such securities, and/or securities linked to Equity Shares and/or securities with or without detachable/non-detachable warrants and/or warrants with a right exercisable by the warrant-holder to subscribe for Equity Shares and/or any instruments or securities representing either Equity Shares, secured premium notes, and/ or any other financial instruments which would be converted into/ exchanged with Equity Shares at a later date (Securities) as the Board at its sole discretion or in consultation with underwriters, merchant bankers, financial advisors or legal advisors may at any time decide, by way of one or more public, follow-on, preferential issues or private offerings in domestic and/or one or more international market(s), with or without a green shoe option, or private placement or issued /allotted through Qualified Institutions Placement in accordance with the Guidelines for Qualified Institutions Placement prescribed under Chapter XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines, 2000, read with SEBI (Issue Of Capital And Disclosure Requirements) Regulations, 2009 as amended, or by any one or more or a combination of the above model/methods or otherwise and at such time or times and in one or more tranches, whether rupee denominated or denominated in foreign currency, to any eligible Qualified Institutional Buyers including Foreign Institutional Investors, resident/ non-resident investors (whether institutions, incorporated bodies, mutual funds, individuals or otherwise), Venture Capital Funds (foreign or Indian), Indian and/or Multilateral Financial Institutions, Mutual Funds, Non-Resident Indians, stabilizing agents and/or any other categories of investors, whether they be holders of shares of the Company or not (collectively called the Investors) whether or not such Investors are members of the Company as may be deemed appropriate by the Board and permitted under applicable laws and regulations, resulting in the issue of an aggregate amount not exceeding $40 Millions or equivalent thereof and on such terms and conditions and timing of the issue(s)/offering(s) including the Investors to whom the Securities are to be issued, issue price, number of Securities to be issued, creation of mortgage/ charge in accordance with Section 293(1)[a) of the Companies Act, 1956 in respect of any Securities as may be required either on pari-passu basis or otherwise, the stock exchanges on which such Securities will be listed, finalization of allotment of the Securities on the basis of the subscriptions received, face value, rate of interest, redemption period, manner of redemption, amount of premium on redemption, the number of equity share to be allotted on redemption/conversion, the ratio, period of conversion, fixing of record date or book closure dates, and any other matter in connection with, or incidental to, the issue, in consultation with the merchant bankers or other advisors or otherwise, as the Board at its sole discretion may decide together with any amendments or modifications thereto, subject to necessary provisions & approvals.
Saamya Biotech Mulls Raising $40 Million
12/17/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the company on its meeting on December 17, 2009 has decided to issue, offer and allot further shares in all or any one or in combination of Equity Shares, GDR, ADR, Convertible Bonds / Debentures and / or other securities to the extent of $40 millions subject to approval of the members of the Company, to issue equity shares / warrants on preferential basis and to conduct postal ballot to accord consent of the Members of the Company for the aforesaid business.
Saamya Biotech To Mull Funding Options
12/14/2009
Saamya Biotech (India) Ltd. will be meeting on December 17, 2009 to consider issue further shares under GDR mechanism/ Preferential Allotment / QIB, etc., subject to approval of the members of the Company.
Stock History:
Volume 26,345
Prev Close 10.04
Day's H/L (Rs) 10.49 - 9.54
52wk H/L (Rs) 14.10 - 3.57
Mkt Cap (Rs Cr) 24.23
Project Progress:
Kedah Govt. of Malaysia agreed to provide 10 acre land in the Biotechnology park. A joint venture agreement with the Kedah state Govt. has been entered by the main promoter and collaborator, M/s Saamya Biotech (India) limited, in respect of land and equity participation. Govt. incentives for tax exemptions, Research grants, personnel training grant and permission for expatriate posts have also been obtained. Funding approvals from Federal Govt. and financial institutions are awaited.
The company entered into Technology transfer agreement with Saamya Biotech (India) Ltd., the main promoter company.
The parent and main promoter company, Saamya Biotech (India) Ltd. has entered into marketing agreement with Arch Pharmalabs Ltd., Mumbai, India for 100% marketing of the products that are manufactured by Saamya Biotech (Malaysia) Sdn. Bhd.
Saamya Biotech (India) Ltd., the parent and main promoter company, has signed an agreement with M/s Shapoorji Pallonji & Co. Ltd., Mumbai, India for execution of the project (construction/ basic and detailed engineering etc) on turnkey basis.
NOC from Pollution Control Board for establishing the facility, being planned.
Necessary statutory permissions from Malaysian Govt. will be obtained.
Conclusion:
Saamya Biotech is looking very attractive at this level.Guys pls keep your eyes open for this stock.I am very confident and optimistic this is one the way to become a multibagger in comming days. If thing goes in proper direction then I want to see Saamya Biotech at Rs 50-60 level within a year.
Currently it is trading at Rs 10.00. Go for it guys and it will enrich your portfolio.It can gives you atleast 10-15 times return in 2-3 years.
Wednesday, January 13, 2010
Buy MSP Steel & Power: Multibagger
PE ratio 6.18 12/01/10
EPS (Rs) 6.87 Mar, 09
Sales (Rs crore) 91.24 Sep, 09
Face Value (Rs) 10
Net profit margin (%) 12.84 Mar, 08
Return on average equity 36.08 Mar, 08
EPS can be expected in 2010-2011 as Rs 12.
PE ratio: 25-30
Price should be in between Rs 250 to 300 in 2 yrs time.
Whole Investment in Pipeline
MSP Steel & Power Ltd to invest Rs 382 Cr on enhancing production capacities
Written by Vijay
Tuesday, 27 October 2009
Mumbai: MSP Steel & Power Ltd is enhancing production capacities at it's Chhattisgarh plant. The company is setting up a 350 MTPA Sponge Iron Plant, 18 MW Power Plant, 383625 MTPA Coal Washery and 186450 Sq Ft MSP Colony at a total project cost of Rs. 233 Crores.
Rs. 155 Crore of the total project cost has been syndicated by a consortium of four banks. The remaining amount of Rs. 78.00 Crore will be brought in by promoters through internal accruals.
State Bank of India, Oriental Bank of Commerce, Allahabad Bank & Indian Overseas Bank have syndicated funds to the extent of Rs. 60.00 Cr., 30.00 Cr, 30.00 Cr & 35.00 Cr respectively. The entire amount of loan has been fully sanctioned and the Company has started taking disbursement of the same to carry on the implementation of the projects.
MSP Steel & Power Ltd is also setting up a 30 MW Power Plant at an investment of Rs. 149.5 Cr. For this project Rs. 50 Cr will be brought in by the promoters & the remaining 99.5 Cr will be funded by the banks. The Company has received sanctions from three banks and details are being worked out.
Past events and happenings:
MSP Signs MOU With Madhya Pradesh Govt. on 16th Feb 2008
MSP Steel & Power Ltd. has signed Memorandum of Understandings (MOU) with M P Trade & Investment Facilitation Corp Ltd, Government of Madhya Pradesh, on February 16, 2008 for setting up two Iron Ore Beneficiation Plants, one in the District of Jabalpur & other in Katni, with the capacities of 5.0 MTPA each, with a proposed Investment of Rs 200.00 crores in each, with a proposed Investment of Rs 200.00 crores in each plant and a Pelletiastation and Steel Plant of appropriate capacities in the above districts provided that the beneficiated ore is suitable for pelletisation.
Government of Madhya Pradesh shall facilities required infrastructure facilities, incentives and will facilitate to obtain the necessary clearness and concessions for the project from single window.
MSP Signs MOU With Madhya Pradesh Govt. on 27th Oct 2007
MSP Steel & Power Ltd. Has signed MOU with Government of Madhya Pradesh on October 27, 2007 for setting up a 2 million tonne Clinker and Cement Plant, the Company has been, granted prospecting licence for captive limestone mines has been allotted over an area of 683.47 hectares, in the rich limestone belt of Katni, M.P.
The Company believes that the area granted contains sufficient deposits to meet its complete requirement of Limestone through Captive Mines for the proposed project.
MSP Signs MOU With Madhya Pradesh Govt.
MSP Steel & power Ltd. Has signed a Memorandum of Understanding (MOU) with M P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on October 27, 2007 for setting up a 2 million tone, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs 1000.00 crores.
MSP Metallics started commercial production an has successfully started production of Pig Iron, Sponge Iron, and Billets during 1st Quarter of 2008
MSP is setting up 3,00,000 MTPA Pellet Plant in its Raigarh unit. Iron ore fines which is abundantly available will be used into pellet plant to manufacture pellete and pellets will be used in Sponge Iron Plant. Once the pellet plant will start production the group will save substantial amount in terms of Iron ore prices.
Coal mines has been allotted to Chaman Metallics Ltd. In the state of Maharashtra
Coal mines has been allotted to Howrah Gases Ltd.
MSP Signs MOU With Chhattisgarh Govt.
MSP Steel and Power Ltd. (MSPSPL) has signed the MOU for expansion of its plant with an investment of Rs. 850 crore with the Chhattisgarh Govt. The Managing Director of the company Mr. S K Agrawal signed the MOU.
MSP gets UNFCC approval for Carbon Credits
MSP Steel and Power Ltd. flagship company of the MSP Group, has been registered with UNFCCC. The Captive Power Plant is based on Waste Heat Recovery Module whereby flue gas released the Sponge Iron kiln is used to generate steam in the boiler thereby replacing fossil fuel for generating power. It will involve reduction of 59,000 Metric Tons of CO2 equivalent per annum which lead to substantial revenue inflow by selling CER credits (Certified Energy Reduction) which will accrue to the company for the period of 10 years.
MSP has also successfully commissioned all the facilities envisaged in the project in the 1st and 2nd phase which include Sponge Iron -2.00 lacs TPA. Steel Melting Shop - 1.50 lacs TPA. CPP - 24 MW, TMT Rolling Mill - 0.80 lacs TPA. Coal Washery - 3.00 lacs TPA. Railway Siding- 2.4 km. MSP is marketing its TMT bars under the brand name of MSP Gold Theremax TMT.
MSP has already been accorded Coal Block by the Ministry of Coal to meet its coal requirement for next 30 years and its application for iron ore mines in Chhattisgarh is in advanced stages of consideration.
The Railway Siding and Captive Power Plant has brought substantial savings for the company since their commissioning.
MSP Signs MOU With Madhya Pradesh Govt.
MSP Steel & Power Limited has signed a Memorandum of Understanding (MOU) with M.P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on 27.10.2007 for setting up a 2 million tons, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs. 1000.00 crores.
Government of Madhya Pradesh shall facilitate allocation of land and grant of captive limestone mines.
Further it shall facilitate in recommendations being sent by the Government of Madhya Pradesh to Government of India for allocation of coal linkage and allotment of captive coal block for the project.
EPS (Rs) 6.87 Mar, 09
Sales (Rs crore) 91.24 Sep, 09
Face Value (Rs) 10
Net profit margin (%) 12.84 Mar, 08
Return on average equity 36.08 Mar, 08
EPS can be expected in 2010-2011 as Rs 12.
PE ratio: 25-30
Price should be in between Rs 250 to 300 in 2 yrs time.
Whole Investment in Pipeline
MSP Steel & Power Ltd to invest Rs 382 Cr on enhancing production capacities
Written by Vijay
Tuesday, 27 October 2009
Mumbai: MSP Steel & Power Ltd is enhancing production capacities at it's Chhattisgarh plant. The company is setting up a 350 MTPA Sponge Iron Plant, 18 MW Power Plant, 383625 MTPA Coal Washery and 186450 Sq Ft MSP Colony at a total project cost of Rs. 233 Crores.
Rs. 155 Crore of the total project cost has been syndicated by a consortium of four banks. The remaining amount of Rs. 78.00 Crore will be brought in by promoters through internal accruals.
State Bank of India, Oriental Bank of Commerce, Allahabad Bank & Indian Overseas Bank have syndicated funds to the extent of Rs. 60.00 Cr., 30.00 Cr, 30.00 Cr & 35.00 Cr respectively. The entire amount of loan has been fully sanctioned and the Company has started taking disbursement of the same to carry on the implementation of the projects.
MSP Steel & Power Ltd is also setting up a 30 MW Power Plant at an investment of Rs. 149.5 Cr. For this project Rs. 50 Cr will be brought in by the promoters & the remaining 99.5 Cr will be funded by the banks. The Company has received sanctions from three banks and details are being worked out.
Past events and happenings:
MSP Signs MOU With Madhya Pradesh Govt. on 16th Feb 2008
MSP Steel & Power Ltd. has signed Memorandum of Understandings (MOU) with M P Trade & Investment Facilitation Corp Ltd, Government of Madhya Pradesh, on February 16, 2008 for setting up two Iron Ore Beneficiation Plants, one in the District of Jabalpur & other in Katni, with the capacities of 5.0 MTPA each, with a proposed Investment of Rs 200.00 crores in each, with a proposed Investment of Rs 200.00 crores in each plant and a Pelletiastation and Steel Plant of appropriate capacities in the above districts provided that the beneficiated ore is suitable for pelletisation.
Government of Madhya Pradesh shall facilities required infrastructure facilities, incentives and will facilitate to obtain the necessary clearness and concessions for the project from single window.
MSP Signs MOU With Madhya Pradesh Govt. on 27th Oct 2007
MSP Steel & Power Ltd. Has signed MOU with Government of Madhya Pradesh on October 27, 2007 for setting up a 2 million tonne Clinker and Cement Plant, the Company has been, granted prospecting licence for captive limestone mines has been allotted over an area of 683.47 hectares, in the rich limestone belt of Katni, M.P.
The Company believes that the area granted contains sufficient deposits to meet its complete requirement of Limestone through Captive Mines for the proposed project.
MSP Signs MOU With Madhya Pradesh Govt.
MSP Steel & power Ltd. Has signed a Memorandum of Understanding (MOU) with M P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on October 27, 2007 for setting up a 2 million tone, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs 1000.00 crores.
MSP Metallics started commercial production an has successfully started production of Pig Iron, Sponge Iron, and Billets during 1st Quarter of 2008
MSP is setting up 3,00,000 MTPA Pellet Plant in its Raigarh unit. Iron ore fines which is abundantly available will be used into pellet plant to manufacture pellete and pellets will be used in Sponge Iron Plant. Once the pellet plant will start production the group will save substantial amount in terms of Iron ore prices.
Coal mines has been allotted to Chaman Metallics Ltd. In the state of Maharashtra
Coal mines has been allotted to Howrah Gases Ltd.
MSP Signs MOU With Chhattisgarh Govt.
MSP Steel and Power Ltd. (MSPSPL) has signed the MOU for expansion of its plant with an investment of Rs. 850 crore with the Chhattisgarh Govt. The Managing Director of the company Mr. S K Agrawal signed the MOU.
MSP gets UNFCC approval for Carbon Credits
MSP Steel and Power Ltd. flagship company of the MSP Group, has been registered with UNFCCC. The Captive Power Plant is based on Waste Heat Recovery Module whereby flue gas released the Sponge Iron kiln is used to generate steam in the boiler thereby replacing fossil fuel for generating power. It will involve reduction of 59,000 Metric Tons of CO2 equivalent per annum which lead to substantial revenue inflow by selling CER credits (Certified Energy Reduction) which will accrue to the company for the period of 10 years.
MSP has also successfully commissioned all the facilities envisaged in the project in the 1st and 2nd phase which include Sponge Iron -2.00 lacs TPA. Steel Melting Shop - 1.50 lacs TPA. CPP - 24 MW, TMT Rolling Mill - 0.80 lacs TPA. Coal Washery - 3.00 lacs TPA. Railway Siding- 2.4 km. MSP is marketing its TMT bars under the brand name of MSP Gold Theremax TMT.
MSP has already been accorded Coal Block by the Ministry of Coal to meet its coal requirement for next 30 years and its application for iron ore mines in Chhattisgarh is in advanced stages of consideration.
The Railway Siding and Captive Power Plant has brought substantial savings for the company since their commissioning.
MSP Signs MOU With Madhya Pradesh Govt.
MSP Steel & Power Limited has signed a Memorandum of Understanding (MOU) with M.P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on 27.10.2007 for setting up a 2 million tons, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs. 1000.00 crores.
Government of Madhya Pradesh shall facilitate allocation of land and grant of captive limestone mines.
Further it shall facilitate in recommendations being sent by the Government of Madhya Pradesh to Government of India for allocation of coal linkage and allotment of captive coal block for the project.
Buy Gallant Metal with a price target of INR 65 in short term and INR 110 in longterm
Gallantt Metal Ltd has announced the Financial Results for the quarter ended December 31, 2009.
The Net Sales was at Rs.118.81 crores for quarter ending on 31-Dec-2009 as compared to Rs.69.12 crores for quarter ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.9.98 crores for the quarter ending on 31-Dec-2009 as compared to Rs.0.46 crores for quarter ending on 31-Dec-2008. The EPS was at Rs 1.23 for the quarter ending on 31-Dec-2009 as compared to Rs 0.06 for the quarter ending on 31-Dec-2008.
The Net Sales was at Rs.321.27 crores for 9 months ending on 31-Dec-2009 as compared to Rs.355.40 crores for 9 months ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.19.58 crores for the 9 months ending on 31-Dec-2009 as compared to Rs.17.22 crores for 9 months ending on 31-Dec-2008. The EPS was at Rs 2.41 for 9 months ending on 31-Dec-2009 as compared to Rs 2.12 for 9 months ending on 31-Dec-2008.
The Net Sales was at Rs.118.81 crores for quarter ending on 31-Dec-2009 as compared to Rs.69.12 crores for quarter ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.9.98 crores for the quarter ending on 31-Dec-2009 as compared to Rs.0.46 crores for quarter ending on 31-Dec-2008. The EPS was at Rs 1.23 for the quarter ending on 31-Dec-2009 as compared to Rs 0.06 for the quarter ending on 31-Dec-2008.
The Net Sales was at Rs.321.27 crores for 9 months ending on 31-Dec-2009 as compared to Rs.355.40 crores for 9 months ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.19.58 crores for the 9 months ending on 31-Dec-2009 as compared to Rs.17.22 crores for 9 months ending on 31-Dec-2008. The EPS was at Rs 2.41 for 9 months ending on 31-Dec-2009 as compared to Rs 2.12 for 9 months ending on 31-Dec-2008.
Saturday, August 22, 2009
What is considered a genius IQ score?
When you talk about IQ tests you need to understand how they are measured. You need to understand a few words here.Mean = average.Bell curve = a line drawn on a graph that looks similar to a bell.Standard deviation = a distance that is measured away from the mean or average.Let me explain.The average score of an IQ test is usually 100. That is the mean.For many tests, the standard deviation is 15. Others have different standard deviations.This information now explains a few things.You move 1 standard deviation in each direction from 100. So you go 100-15=85 and you go 100+15=115.This gives you a range of 85 to 115. In a bell curve this means that 68% of all people score between 85 and 115 on the IQ. Half of that is 34%. So 100 to 115 is 34% of people.I am probably losing you a bit now.Basically you go 4 standard deviations in each direction.1 deviation is 68% of all scores. From 85 to 115.2 deviations are 95% of all scores. From 70 to 130.3 deviations are 99.7% of all scores. From 55 to 145.4 deviations are 99.99% of all scores. From 40 to 160.Most groups would consider that an IQ of 160 and above is at a genius level. That equates to 1 out of 10,000 people.There are different tests and different scores to reach but the majority of the information I have written here applies.By the way, an average IQ and a great work ethic and dedication to succeed will secure you success in life.
Wednesday, August 19, 2009
Indians earn 20 times less than developed world peers
Indians might be known for their hard work but when it comes to their wages, they are paid nearly 20 times less than their counterparts in developed nations like the US and Switzerland. According to 'Prices and Earnings' study by Swiss banking major UBS, workers in New Delhi and Mumbai earn an average net salary of $1.6 and $1.2 per hour, respectively. In contrast, Swiss cities -- Zurich and Geneva -- have topped the charts with the highest average net incomes in the world of as much as $22.60 and $20.40 per hour. "Swiss workers earn the most. Zurich and Geneva top the rankings in our international comparison of wages. By contrast, the average employee in Delhi, Manila, Jakarta and Mumbai earns less than one-fifteenth of that amount," the report stated. Workers in the US also earn at the higher end of bracket with people in New York earning an average salary of $19 per hour, while those in Los Angeles get $13.90 per hour. Workers in London receive an average net wage of $13.90 per hour, it added. In terms of the gross hourly wages, workers in Western Europe and North America have the highest gross hourly wages averaging at $20.2 and $21.0 respectively, the survey said. While, in Asia and Eastern Europe, workers receive an average of $5.5 per hour before taxes and social security contributions are deducted from the salary.
Courtesy: ET
Thursday, August 13, 2009
Remedies to avoid swine flu
1.Have five duly washed leaves of Tulsi (known as Basil in English; medicinal name Ocimum sanctum) everyday in the morning. Tulsi has a large number of therapeutic properties. It keeps throat and lungs clear and helps in infections by way of strengthening your immunity.
2. Giloi (medicinal name Tinospora cordifolia) is a commonly available plant in many areas. Take a one-foot long branch of giloi, add five to six leaves of Tulsi and boil in water for 15-20 minutes or long enough to allow the water to extract its properties. Add black pepper and sendha (salt used during religious fasts), rock or black salt, or Misri (crystalised sugar like lumps to make it sweet) according to taste. Let it cool a bit and drink this kadha (concoction) while still warm. It will work wonders for your immunity. If giloi plant is not available, get processed giloi powder from Hamdard or others, and concoct a similar drink once a day.
3. A small piece of camphor (kapoor) approximately the size of a tablet should be taken once or twice a month. It can be swallowed with water by adults while children can take it along with mashed potatoes or banana because they will find it difficult to have it without any aides. Please remember camphor is not to be taken everyday, but only once each season, or once a month.
4. Those who can take garlic, must have two pods of raw garlic first thing in the morning. To be swallowed daily with lukewarm water. Garlic too strengthens immunity like the earlier measures mentioned.
5. Those not allergic to milk, must take a glass of hot or lukewarm milk every night with a small measure of haldi (turmeric).
6. Aloe vera (gwarpatha) too is a commonly available plant. Its thick and long, cactus-like leaves have an odourless gel. A teaspoon gel taken with water daily can work wonders for not only your skin and joint pains, but also boost immunity.
7. Take homeopathic medicines - Pyrogenium 200 and Inflenzium 200 in particular - five tablets three times a day, or two-three drops three times a day. While these are not specifically targeted at H1N1 either, these work well as preventive against common flu virus.
8. Do Pranayam daily (preferably under guidance if you are already not initiated into it) and go for morning jog/walk regularly to keep your throat and lungs in good condition and body in fine fettle. Even in small measures, it will work wonders for your body’s resistance against all such diseases which attack the nose, throat and lungs, besides keeping you fit.
9. Have citrus fruits, particularly Vitamin C rich Amla (Indian gooseberry) juice. Since fresh Amla is not yet available in the market (not for another three to four months), it is not a bad idea to buy packaged Amla juice which is commonly available nowadays. 10. Last but not the least, wash your hands frequently every day with soap and warm water for 15-20 seconds; especially before meals, or each time after touching a surface that you suspect could be contaminated with flu virus such as a door handle or a knob/handle, especially if you have returned from a public place or used public transport.Alcohol-based hand cleaners should be kept handy at all times and used until you can get soap and warm water.
2. Giloi (medicinal name Tinospora cordifolia) is a commonly available plant in many areas. Take a one-foot long branch of giloi, add five to six leaves of Tulsi and boil in water for 15-20 minutes or long enough to allow the water to extract its properties. Add black pepper and sendha (salt used during religious fasts), rock or black salt, or Misri (crystalised sugar like lumps to make it sweet) according to taste. Let it cool a bit and drink this kadha (concoction) while still warm. It will work wonders for your immunity. If giloi plant is not available, get processed giloi powder from Hamdard or others, and concoct a similar drink once a day.
3. A small piece of camphor (kapoor) approximately the size of a tablet should be taken once or twice a month. It can be swallowed with water by adults while children can take it along with mashed potatoes or banana because they will find it difficult to have it without any aides. Please remember camphor is not to be taken everyday, but only once each season, or once a month.
4. Those who can take garlic, must have two pods of raw garlic first thing in the morning. To be swallowed daily with lukewarm water. Garlic too strengthens immunity like the earlier measures mentioned.
5. Those not allergic to milk, must take a glass of hot or lukewarm milk every night with a small measure of haldi (turmeric).
6. Aloe vera (gwarpatha) too is a commonly available plant. Its thick and long, cactus-like leaves have an odourless gel. A teaspoon gel taken with water daily can work wonders for not only your skin and joint pains, but also boost immunity.
7. Take homeopathic medicines - Pyrogenium 200 and Inflenzium 200 in particular - five tablets three times a day, or two-three drops three times a day. While these are not specifically targeted at H1N1 either, these work well as preventive against common flu virus.
8. Do Pranayam daily (preferably under guidance if you are already not initiated into it) and go for morning jog/walk regularly to keep your throat and lungs in good condition and body in fine fettle. Even in small measures, it will work wonders for your body’s resistance against all such diseases which attack the nose, throat and lungs, besides keeping you fit.
9. Have citrus fruits, particularly Vitamin C rich Amla (Indian gooseberry) juice. Since fresh Amla is not yet available in the market (not for another three to four months), it is not a bad idea to buy packaged Amla juice which is commonly available nowadays. 10. Last but not the least, wash your hands frequently every day with soap and warm water for 15-20 seconds; especially before meals, or each time after touching a surface that you suspect could be contaminated with flu virus such as a door handle or a knob/handle, especially if you have returned from a public place or used public transport.Alcohol-based hand cleaners should be kept handy at all times and used until you can get soap and warm water.
SWINE FLU FACT
What are the symptoms?
Swine flu symptoms are similar to the symptoms of regular flu and include fever of over 100.4°F, fatigue, lack of appetite, and cold. Some people with swine flu have also reported runny nose, sore throat, nausea, vomiting and diarrhoea. Nearly everyone with flu has at least two of these symptoms.So, how do you know if you have flu or just cold? There is one clue: when you have the flu, you feel flu symptoms sooner than you would cold symptoms, and they come on with much greater intensity. With the flu, you may feel very weak and fatigued for up to 2 or 3 weeks. You'll have muscle aches and periods of chills and sweats as fever comes and goes. You may also have a stuffy or runny nose, headache, and sore throat. Can I compare flu symptoms with cold symptoms? Yes. The following chart can help you compare flu symptoms with cold symptoms. Use it to lean the differences and similarities between flu and cold symptoms. Then, if you get flu symptoms, call your doctor and ask about an antiviral drug.
You cannot confirm if you have swine flu just based on your symptoms. Like seasonal flu, pandemic swine flu can cause neurologic symptoms in children. These events are rare, but, as cases associated with seasonal flu have shown, they can be very severe and often fatal.Doctors may offer a rapid flu test, but what you need to understand is a negative result doesn't necessarily mean you don't have the flu. Only lab tests can definitively show whether you've got swine flu. State health departments can do these tests.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
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Who is at risk?
Those who are more at risk from becoming seriously ill with swine flu are people with:
chronic (long-term) lung disease, including people who have had drug treatment for their asthma within the past three years,
chronic heart disease,
chronic kidney disease,
chronic liver disease,
chronic neurological disease (neurological disorders include motor neurone disease, Parkinson's disease and multiple sclerosis),
suppressed immune systems (whether caused by disease or treatment),
diabetes,
pregnant women,
people aged 65 or older, and
young children under five.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
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Who is at risk?
Those who are more at risk from becoming seriously ill with swine flu are people with:
chronic (long-term) lung disease, including people who have had drug treatment for their asthma within the past three years,
chronic heart disease,
chronic kidney disease,
chronic liver disease,
chronic neurological disease (neurological disorders include motor neurone disease, Parkinson's disease and multiple sclerosis),
suppressed immune systems (whether caused by disease or treatment),
diabetes,
pregnant women,
people aged 65 or older, and
young children under five.
How does it spread?
The new swine flu virus is highly contagious, that is it spreads from person to person. The virus is spread through the droplets that come out of the nose or mouth when someone coughs or sneezes. If someone coughs or sneezes and they do not cover it, those droplets can spread about one metre (3ft). If you are very nearby you might breathe them in.Or, if someone coughs or sneezes into their hand, those droplets and the virus within them are easily transferred to surfaces that the person touches, such as door handles, hand rails, telephones and keyboards. If you touch these surfaces and touch your face, the virus can enter your system, and you can become infected.
Can it be prevented?
Influenza antiviral drugs also can be used to prevent influenza when they are given to a person who is not ill, but who has been or may be near a person with swine influenza. When used to prevent the flu, antiviral drugs are about 70% to 90% effective. When used for prevention, the number of days that they should be used will vary depending on a person’s particular situation.Follow this general procedure to reduce the risk of catching or spreading the virus, you should:
Cover your mouth and nose when coughing and sneezing, using a tissue
Throw the tissue away quickly and carefully
Wash your hands regularly with soap and water
Clean hard surfaces (like door handles and remote controls) frequently with a normal cleaning product
Keep away from others as much as possible. This is to keep from making others sick. Do not go to work or school while ill
Stay home for at least 24 hours after fever is gone, except to seek medical care or for other necessities. (Fever should be gone without the use of a fever-reducing medicine.)
Drink clear fluids (such as water, broth, sports drinks, electrolyte beverages for infants) to keep from being dehydrated
Wear a facemask – if available and tolerable – when sharing common spaces with other household members to help prevent spreading the virus to others.
Will it help to wear a mask?
Information on the effectiveness of facemasks and respirators for decreasing the risk of influenza infection in community settings is extremely limited. So, it is difficult to assess their potential effectiveness in decreasing the risk of Swine Flu virus transmission in these settings. However, a well-fitted, FDA-approved mask together with other preventive measures MAY reduce the risk of contracting the flu. Those who are sick or caring for someone who is ill should consider using a mask or respirator if leaving the house becomes necessary.
What precautions should one take at home?
Two things - soap and water can reduce the chance of infection by 30 per cent. All you need to do is keep washing your hand with soap and water frequently. Wash hands frequently with soap and water or use alcohol-based hand cleaner when soap and water are not available. Avoid touching your eyes, nose and mouthEat healthy: Proteins are essential to help your body maintain and build strength. Lean meat, poultry, fish, legumes, dairy, eggs, and nuts and seeds are good sources of protein.The Food and Drug Administration recommends that adults eat 50 grams of protein per day. Pregnant and nursing women need more. By eating foods high in protein, we also get the benefit of other healing nutrients such as vitamins B6 and B12, both of which contribute to a healthy immune system.Vitamin B6 is widely available in foods, including protein foods such as turkey and beans as well as potatoes, spinach, and enriched cereal grains. Proteins such as meats, milk, and fish also contain vitamin B12, a powerful immune booster.Minerals such as selenium and zinc work to keep the immune system strong. These minerals are found in protein rich foods such as beans, nuts, meat, and poultry.Exercise: Regular exercise may help prevent the flu. According to recent findings, when moderate exercise is repeated on a near daily basis, there is a cumulative immune-enhancing effect. That is, your strong immune system can fight flu better. When you exercise, your white blood cells -- the blood cells that fight infections in the body -- travel through your body more quickly, fighting bacteria and viruses (such as flu) more efficiently. To maintain good health, experts recommend at least 30 minutes of aerobic activity such as walking, swimming, biking, or running each day.
What precautions should one take at schools?
Avoid close contact with people who are sick
People who are sick with an influenza-like illness should stay home and keep away from others as much as possible, including avoiding travel, for at least 24 hours after fever is gone except to get medical care or for other necessities. (Fever should be gone without the use of fever-reducing medicine). Cover your mouth and nose with a tissue when coughing or sneezing.
Wash your hands often.
Avoid touching your eyes, nose or mouth.
Is it safe to travel?
Avoid traveling unnecessarily. However, if you must travel, check how the country you're going to handles swine flu. Although, the WHO doesn't recommend travel restrictions, many countries have set up their own H1N1 policies, and some travelers have been screened or quarantined in other countries because of swine flu concerns.
Swine flu symptoms are similar to the symptoms of regular flu and include fever of over 100.4°F, fatigue, lack of appetite, and cold. Some people with swine flu have also reported runny nose, sore throat, nausea, vomiting and diarrhoea. Nearly everyone with flu has at least two of these symptoms.So, how do you know if you have flu or just cold? There is one clue: when you have the flu, you feel flu symptoms sooner than you would cold symptoms, and they come on with much greater intensity. With the flu, you may feel very weak and fatigued for up to 2 or 3 weeks. You'll have muscle aches and periods of chills and sweats as fever comes and goes. You may also have a stuffy or runny nose, headache, and sore throat. Can I compare flu symptoms with cold symptoms? Yes. The following chart can help you compare flu symptoms with cold symptoms. Use it to lean the differences and similarities between flu and cold symptoms. Then, if you get flu symptoms, call your doctor and ask about an antiviral drug.
You cannot confirm if you have swine flu just based on your symptoms. Like seasonal flu, pandemic swine flu can cause neurologic symptoms in children. These events are rare, but, as cases associated with seasonal flu have shown, they can be very severe and often fatal.Doctors may offer a rapid flu test, but what you need to understand is a negative result doesn't necessarily mean you don't have the flu. Only lab tests can definitively show whether you've got swine flu. State health departments can do these tests.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
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Who is at risk?
Those who are more at risk from becoming seriously ill with swine flu are people with:
chronic (long-term) lung disease, including people who have had drug treatment for their asthma within the past three years,
chronic heart disease,
chronic kidney disease,
chronic liver disease,
chronic neurological disease (neurological disorders include motor neurone disease, Parkinson's disease and multiple sclerosis),
suppressed immune systems (whether caused by disease or treatment),
diabetes,
pregnant women,
people aged 65 or older, and
young children under five.
What should you do immediately?
Those of you who have travelled from the affected countries in the past ten days and show symptoms swine flu like fever, cough, sore throat and difficulty in breathing should immediately contact the telephone number given below or visit the nearby Government Hospital.
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Who is at risk?
Those who are more at risk from becoming seriously ill with swine flu are people with:
chronic (long-term) lung disease, including people who have had drug treatment for their asthma within the past three years,
chronic heart disease,
chronic kidney disease,
chronic liver disease,
chronic neurological disease (neurological disorders include motor neurone disease, Parkinson's disease and multiple sclerosis),
suppressed immune systems (whether caused by disease or treatment),
diabetes,
pregnant women,
people aged 65 or older, and
young children under five.
How does it spread?
The new swine flu virus is highly contagious, that is it spreads from person to person. The virus is spread through the droplets that come out of the nose or mouth when someone coughs or sneezes. If someone coughs or sneezes and they do not cover it, those droplets can spread about one metre (3ft). If you are very nearby you might breathe them in.Or, if someone coughs or sneezes into their hand, those droplets and the virus within them are easily transferred to surfaces that the person touches, such as door handles, hand rails, telephones and keyboards. If you touch these surfaces and touch your face, the virus can enter your system, and you can become infected.
Can it be prevented?
Influenza antiviral drugs also can be used to prevent influenza when they are given to a person who is not ill, but who has been or may be near a person with swine influenza. When used to prevent the flu, antiviral drugs are about 70% to 90% effective. When used for prevention, the number of days that they should be used will vary depending on a person’s particular situation.Follow this general procedure to reduce the risk of catching or spreading the virus, you should:
Cover your mouth and nose when coughing and sneezing, using a tissue
Throw the tissue away quickly and carefully
Wash your hands regularly with soap and water
Clean hard surfaces (like door handles and remote controls) frequently with a normal cleaning product
Keep away from others as much as possible. This is to keep from making others sick. Do not go to work or school while ill
Stay home for at least 24 hours after fever is gone, except to seek medical care or for other necessities. (Fever should be gone without the use of a fever-reducing medicine.)
Drink clear fluids (such as water, broth, sports drinks, electrolyte beverages for infants) to keep from being dehydrated
Wear a facemask – if available and tolerable – when sharing common spaces with other household members to help prevent spreading the virus to others.
Will it help to wear a mask?
Information on the effectiveness of facemasks and respirators for decreasing the risk of influenza infection in community settings is extremely limited. So, it is difficult to assess their potential effectiveness in decreasing the risk of Swine Flu virus transmission in these settings. However, a well-fitted, FDA-approved mask together with other preventive measures MAY reduce the risk of contracting the flu. Those who are sick or caring for someone who is ill should consider using a mask or respirator if leaving the house becomes necessary.
What precautions should one take at home?
Two things - soap and water can reduce the chance of infection by 30 per cent. All you need to do is keep washing your hand with soap and water frequently. Wash hands frequently with soap and water or use alcohol-based hand cleaner when soap and water are not available. Avoid touching your eyes, nose and mouthEat healthy: Proteins are essential to help your body maintain and build strength. Lean meat, poultry, fish, legumes, dairy, eggs, and nuts and seeds are good sources of protein.The Food and Drug Administration recommends that adults eat 50 grams of protein per day. Pregnant and nursing women need more. By eating foods high in protein, we also get the benefit of other healing nutrients such as vitamins B6 and B12, both of which contribute to a healthy immune system.Vitamin B6 is widely available in foods, including protein foods such as turkey and beans as well as potatoes, spinach, and enriched cereal grains. Proteins such as meats, milk, and fish also contain vitamin B12, a powerful immune booster.Minerals such as selenium and zinc work to keep the immune system strong. These minerals are found in protein rich foods such as beans, nuts, meat, and poultry.Exercise: Regular exercise may help prevent the flu. According to recent findings, when moderate exercise is repeated on a near daily basis, there is a cumulative immune-enhancing effect. That is, your strong immune system can fight flu better. When you exercise, your white blood cells -- the blood cells that fight infections in the body -- travel through your body more quickly, fighting bacteria and viruses (such as flu) more efficiently. To maintain good health, experts recommend at least 30 minutes of aerobic activity such as walking, swimming, biking, or running each day.
What precautions should one take at schools?
Avoid close contact with people who are sick
People who are sick with an influenza-like illness should stay home and keep away from others as much as possible, including avoiding travel, for at least 24 hours after fever is gone except to get medical care or for other necessities. (Fever should be gone without the use of fever-reducing medicine). Cover your mouth and nose with a tissue when coughing or sneezing.
Wash your hands often.
Avoid touching your eyes, nose or mouth.
Is it safe to travel?
Avoid traveling unnecessarily. However, if you must travel, check how the country you're going to handles swine flu. Although, the WHO doesn't recommend travel restrictions, many countries have set up their own H1N1 policies, and some travelers have been screened or quarantined in other countries because of swine flu concerns.
Friday, August 7, 2009
My Guru -Mr. Rakesh Jhunjhunwala: The Great Investment Philosopher in my life
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.
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.
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.
Sunday, June 28, 2009
How to analyse an IPO
The year 2008 was one of drought as far as Initial Public Offers (IPO) goes. But with a revival of sorts in the markets, quite a few of these are lined up, with one — that of Mahindra Holiday and Resorts — already through. Investing in an IPO is a shade trickier than an existing company since not much information about it — financial or otherwise — will be publicly available. This is where, as a rule, the prospectus comes in as the best possible source of comprehensive information on the company.
Since the bulky document may appear a tad intimidating to the new investor, here are a few guidelines on how to pick relevant information, and what to base your investment decision on.
Any issue prospectus will be divided into seven sections — risk factors, an introduction to and detailed information about the company, financial information, details on the issue, legal and other regulatory information. Of these, the company background and business model, the industry it operates in, purpose of the issue, financial performance and risk factors are areas you should concentrate on.
The year 2008 was one of drought as far as Initial Public Offers (IPO) goes. But with a revival of sorts in the markets, quite a few of these are lined up, with one — that of Mahindra Holiday and Resorts — already through. Investing in an IPO is a shade trickier than an existing company since not much information about it — financial or otherwise — will be publicly available. This is where, as a rule, the prospectus comes in as the best possible source of comprehensive information on the company.
Since the bulky document may appear a tad intimidating to the new investor, here are a few guidelines on how to pick relevant information, and what to base your investment decision on.
Any issue prospectus will be divided into seven sections — risk factors, an introduction to and detailed information about the company, financial information, details on the issue, legal and other regulatory information. Of these, the company background and business model, the industry it operates in, purpose of the issue, financial performance and risk factors are areas you should concentrate on.
Business :
The section ‘About the Company’ gives a detailed description of the nature of the company and its business models; understand how and where the company accrues revenue, and if it is sustainable.
This includes going back to the history of the company, since it explains how the company has developed over the years, acquisitions made, milestones crossed, subsidiary activity, all of which are indicators of the consistency of performance and sustainability.
If possible, compare revenue models with those of existing peer companies to identify if, and where, the company has an advantage. If any competitor is already listed, use it as a comparison for performance, valuations, financials, and strategies.
Also included in the business section is an overview of the industry. Scrutinise it thoroughly to get a grip on the future of the industry and the company’s own prospects within it. As far as financials go, analyse these as you would for any other company.
Strengths:
The company will list its ‘strengths’ — what it considers as an edge over peers — again in the business section. Give these a once-over, paying attention to the details only if the said strength stands out — for example, Gitanjali Gems has a diamond sourcing agreement with Diamond Trading Corp, a key strength since the company is ensured of access to good quality rough diamonds which most peers do not enjoy. Sizeable market share (check source of data here), backward integration, and so on, are other factors favouring the company.
Take the strengths with a pinch of salt, since companies sometimes tend to paint a brighter picture than what they actually are. Conclude yourself if the point given in reality works in the company’s favour significantly.
Risks :
Risks detailed are wide-ranging, from an economic scenario to company-specific, which must be noted to understand potential downside to your investment. Risks are explained at the start of the prospectus.
Some risks given are general in nature and can be ignored, such as political instability, natural calamities, competition from peers and such, which are usually applicable to all companies, regardless of industry.
Legal issues that have a significant bearing on the functioning of the company, are also given here — for example, Mahindra Holidays has a resort in Munnar, where the land is under legal proceedings since it was said to be agricultural.
Now if the case goes against Mahindra, it will mean closure of a flagship resort and loss of revenue from it.
Understanding such material legal proceedings allows you to skip most of the section on legal issues that appears later in the prospectus. For example, legal issues regarding taxes, labour and such need not be combed through.
Objects:
The purpose of the issue is explained in depth, and companies are required to explain the utilisation of funds raised in subsequent annual reports.
Proceeds from the issue can go towards any number of purposes, from repayment of debt to working capital, from capacity expansion to company acquisitions besides covering issue expenses. Fund utilisation should, as far as possible, contribute to revenue generation and earnings expansion.
For example, companies may raise funds to either ramp up production capacity which may lead to increased sales, or to pay back high-cost debt resulting in lower interest costs and more leveraging capability; or for acquisitions that may add to revenues. However, the time taken to accomplish the stated objectives needs to be gauged.
Check the amount of funds set aside for issue expenses, which include advertising and promotion, printing of the prospectus and so on. Check also whether the proceeds of the IPO go entirely to the company; some IPOs involve a stake sale by the promoters in which case funds raised would not accrue to the company.
Other sections you can glance through are the regulations and policies the company is subject to, the management team and the relevant experience they hold and the instructions to bidders in the section detailing the issue — just to make sure you don’t inadvertently mess up your application.
Since the bulky document may appear a tad intimidating to the new investor, here are a few guidelines on how to pick relevant information, and what to base your investment decision on.
Any issue prospectus will be divided into seven sections — risk factors, an introduction to and detailed information about the company, financial information, details on the issue, legal and other regulatory information. Of these, the company background and business model, the industry it operates in, purpose of the issue, financial performance and risk factors are areas you should concentrate on.
The year 2008 was one of drought as far as Initial Public Offers (IPO) goes. But with a revival of sorts in the markets, quite a few of these are lined up, with one — that of Mahindra Holiday and Resorts — already through. Investing in an IPO is a shade trickier than an existing company since not much information about it — financial or otherwise — will be publicly available. This is where, as a rule, the prospectus comes in as the best possible source of comprehensive information on the company.
Since the bulky document may appear a tad intimidating to the new investor, here are a few guidelines on how to pick relevant information, and what to base your investment decision on.
Any issue prospectus will be divided into seven sections — risk factors, an introduction to and detailed information about the company, financial information, details on the issue, legal and other regulatory information. Of these, the company background and business model, the industry it operates in, purpose of the issue, financial performance and risk factors are areas you should concentrate on.
Business :
The section ‘About the Company’ gives a detailed description of the nature of the company and its business models; understand how and where the company accrues revenue, and if it is sustainable.
This includes going back to the history of the company, since it explains how the company has developed over the years, acquisitions made, milestones crossed, subsidiary activity, all of which are indicators of the consistency of performance and sustainability.
If possible, compare revenue models with those of existing peer companies to identify if, and where, the company has an advantage. If any competitor is already listed, use it as a comparison for performance, valuations, financials, and strategies.
Also included in the business section is an overview of the industry. Scrutinise it thoroughly to get a grip on the future of the industry and the company’s own prospects within it. As far as financials go, analyse these as you would for any other company.
Strengths:
The company will list its ‘strengths’ — what it considers as an edge over peers — again in the business section. Give these a once-over, paying attention to the details only if the said strength stands out — for example, Gitanjali Gems has a diamond sourcing agreement with Diamond Trading Corp, a key strength since the company is ensured of access to good quality rough diamonds which most peers do not enjoy. Sizeable market share (check source of data here), backward integration, and so on, are other factors favouring the company.
Take the strengths with a pinch of salt, since companies sometimes tend to paint a brighter picture than what they actually are. Conclude yourself if the point given in reality works in the company’s favour significantly.
Risks :
Risks detailed are wide-ranging, from an economic scenario to company-specific, which must be noted to understand potential downside to your investment. Risks are explained at the start of the prospectus.
Some risks given are general in nature and can be ignored, such as political instability, natural calamities, competition from peers and such, which are usually applicable to all companies, regardless of industry.
Legal issues that have a significant bearing on the functioning of the company, are also given here — for example, Mahindra Holidays has a resort in Munnar, where the land is under legal proceedings since it was said to be agricultural.
Now if the case goes against Mahindra, it will mean closure of a flagship resort and loss of revenue from it.
Understanding such material legal proceedings allows you to skip most of the section on legal issues that appears later in the prospectus. For example, legal issues regarding taxes, labour and such need not be combed through.
Objects:
The purpose of the issue is explained in depth, and companies are required to explain the utilisation of funds raised in subsequent annual reports.
Proceeds from the issue can go towards any number of purposes, from repayment of debt to working capital, from capacity expansion to company acquisitions besides covering issue expenses. Fund utilisation should, as far as possible, contribute to revenue generation and earnings expansion.
For example, companies may raise funds to either ramp up production capacity which may lead to increased sales, or to pay back high-cost debt resulting in lower interest costs and more leveraging capability; or for acquisitions that may add to revenues. However, the time taken to accomplish the stated objectives needs to be gauged.
Check the amount of funds set aside for issue expenses, which include advertising and promotion, printing of the prospectus and so on. Check also whether the proceeds of the IPO go entirely to the company; some IPOs involve a stake sale by the promoters in which case funds raised would not accrue to the company.
Other sections you can glance through are the regulations and policies the company is subject to, the management team and the relevant experience they hold and the instructions to bidders in the section detailing the issue — just to make sure you don’t inadvertently mess up your application.
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