Nishka august issue 2011

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Nishka august issue 2011

  1. 1. A FINANCIAL NEWSLETTER FROM CUIM KENGERI DATE: 5th AUGUST 2011 ISSUE:16
  2. 2. INDEXECONOMIC ROLLERS............................................................................... 2RBI COLUMN........................................................................................... 3MERGERS AND ACQUISITIONS ................................................................ 5CONTEMPLATORS ................................................................................... 7 US DEBT CRISIS-IN AND OUT ................................................................ 7 RBI MONETARY POLICY- A LOPSIDED APPROACH .............................. 10 OWNING A HOUSE! DREAM OR REALITY? ......................................... 11NISHKA EQUITY RESEARCH ................................................................... 13FINANCE BUZZ ...................................................................................... 15PHOTO FIND ......................................................................................... 16FINANCE QUIZZ..................................................................................... 17CROSS WORD ....................................................................................... 18CAMPUS POLL ...................................................................................... 19VERIFY YOURSELF ................................................................................. 21
  3. 3. ECONOMIC ROLLERS Bank Rate: 6.0% Repo Rate: 8% Reverse Repo Rate: 7% Marginal Standing Facility Rate: 9% CRR: 6.0% SLR: 24% 91 Days T bills: 8.3946% (as on 31st July 2011)“Inflation isas violent as 6.90 GS 2019: 8.0907%-8.0907%a mugger, as Inflation: 9.44% as on july 2011 frightening Forex Reserve (as on 17th July 2011) - $314.507 billionas an armed IIP (for May 2011) - +5.6% robber andas deadly as 10 year G - Sec Yield (as on 27th July 2011) – 8.20% - 8.50% a hit man “ CBLO: 7.49bps (as on 22nd July 2011) Exports during June 2011: $29.21 billion Imports during June 2011: $36.8 billion Source: Finance Ministry, Office of Economic Advisory, HDFC Securities Reports, Ministry of Commerce BY PRATEEK LAKHMANI II MBA C 2
  4. 4. RBI COLUMN CHALLENGES FOR NEXT GENERATION BANKING BY K C CHAKRABARTY Indian Chamber of Commerce and Industry (ICCI), Coimbatore conducted ‘Voice ofTomorrow- Fuel to Excel’ along with The Hindu in Coimbatore. The voice of tomorrowbelongs to the youth and the millions of business entrepreneurs of the country. The privatebusiness community will increasingly shape the face of the economy and also become aprominent voice in setting our vision for the future in a market based economy. With likely8% of growth in eleventh 5 year plan, Indian economy is aiming for 10% growth rate in 12 th5 year plan with underlying factors such as private enterprise & investments coupled withdemographic advantage and sustain it. With this Indian contribution to the world GDP willraise from current 2% to 10% by 2030.To achieve this we have to overcome some challenges& opportunities offered by global & domestic developments. As estimated by the United Nations, India is the only country with increase in workingpopulation at 312 million by 2041 while in china it declines by 126 million. Young demogra-phy offers us an opportunity, but addressing the challenge of creating adequate productiveemployment opportunities will determine how best we are able to reap the demographicdividend. The challenge in creating gainful employment for this order of new entrants is thequality of education & skill development. Technology & innovation can make quality educa-tion accessible and affordable by bringing down the unit cost of quality education. With services accounting for 65 percent of the country’s GDP, one would tend topresume that India’s growth must be skill intensive. Facts, however, suggest the opposite.Many developed countries have tertiary enrolment (i.e. vocational training) levels of 60 to 80per cent in the age group of 15-29, which is as high as 96 per cent for Korea. The comparablelevel for India is less than 15 per cent. Expenditure on research and development (R&D) inthe developed countries is in the range of 2 to 3 per cent of GDP on an average, which is just0.8 per cent in India. This probably explains the gap between employment and employabilityin our country. 3
  5. 5. To deal with absorbing a large number of new entrants to the job market, the Government has set a target of raising the share of manufac- turing in GDP from the current level of about 16 per cent to 25 per cent by 2025. The field of finance and banking often attracts the best from among the youth. Any misuse of the financial system –caused by the actions of a few smart educated individuals – could impact the life of a billion plus population. Recent estimates suggest that for every one percent increase in GDP, demand for education loan increases by 3 per cent, and demand for housing loans increases by 5 per cent. Given the demography, as income increases, more and more students would aspire to get quality education, as a means to a better future. After education, once they get gainful em- ployment, decent housing will be the next aspiration. While banks will have to meet the aspirations of the youth by ensuring access to credit at competitive price, to get quality education and shelter, the private sector would have to recognize that artificially created inflation driven by unrea- sonable profit motives in these two critical segments would be a con- straint to our growth and development ambitions. “Monetary policy itself cannot BY sensibly be MADHAV A directed at II MBA B reducing imbalances”-TIMOTHY GEITHNER 4
  6. 6. MERGERS AND ACQUISITONSEagleBank to acquire Alliance Bankshares:Bethesda-based EagleBank has reached an agreement to acquire Alliance Bankshares of Chantilly for about $31.2 mn, or $6.11 per share. The report stated that the merger will give EagleBank an additional $536million in assets, $412 million in deposits and six branches in NorthernVirginia.Cognizant to buy CoreLogic Pvt Ltd:Cognizant, a leading provider of information technology, consulting, and business process outsourcing services, and Core- Logic, a leading provider of information, analytics, and business services, has announced a definitive agreement under which Cognizant will acquire Core- Logic Global Services Private Limited (CoreLogic In- dia), the India-based captive operations of Core-Logic. The purchase price will consist of a cash payment of approximately$50 million, plus adjustments for working capital and other charges orcredits which will be determined at closing.DiamondRock acquired Courtyard Denver:DiamondRock Hospitality Co has acquired the Courtyard Denver Down-town for about $46 mn. It is stated thatthe deal is the company’s second inDenver in about two months. Diamon-dRock paid $72.6 million for the JWMarriott Denver Cherry Creek. 5
  7. 7. Merger of JetLite and Konnect: Jet Airways is planning to consider merger with JetLite and Konnect into a single low-cost brand. The airline is evaluating options regarding a possible merger. Thereare reports that since Jet Airways and JetLitehave separate operating permits, transfer ofplans from one to another brand would require regulatory approval.National Technical acquired Rockford:National Technical Systems, Inc., a leading provider of testing and engineering services,announced today that it has completed a key step in its strate-gic growth plan with the acquisition of substantially all of thebusiness and assets of Ingenium Testing, a leading productcompliance and engineering services provider based in Rock-ford, IL. NTS acquired the business and assets of Ingenium and two affiliated companiesfor US$12.5mn in cash, plus potential earn-out consideration in the event certain perfor-mance targets are met.Merger of Express Scripts and Medco Health Solutions: Express Scripts, Inc. and Medco Health Solutions, Inc. announced that they have entered into a definitive merger agreement. Under the agree- ment, Medco shareholders will receive US$71.36 per share in cash and stock, or US$29.1bn, based on yes-terday’s closing price. Medco shareholders will receive US$28.80 incash and 0.81 shares for each Medco share they own upon closing of the transaction. Theagreement has been unanimously approved by the boards of directors of both companies.The merger will combine the expertise of two complementary pharmacy benefit manag-ers (PBMs) to accelerate efforts to lower the cost of prescription drugs and improve thequality of care for Americans. BY SHUBHAJIT GHOSHAL II MBA A 6
  8. 8. CONTEMPLATORS US DEBT CRISIS – In and OutThe very week when we were busy with our mid-term examinations, world economy wasstruggling with Sovereign Debt crisis of which US being majorly hit. It is nothing but surpris-ing to see that world’s largest economy is under 14.29 tr. USD debt. Let us identify and ana-lyse the reasons behind this debt crisis in United States of America.One reason behind it is US not being able to borrow any more money. The US national debtcannot legally exceed a debt ceiling of $14.29 trillion (£8.86tn) – a seemingly huge amount,but one which was reached in May. Now US government is left with two options either in-crease the debt limits or not (which would result in a very likely default). The country is al-ready in deficit of 1 tr in 2011. The upcoming presidential elections on November 6, 2012 arealso not helping the cause. The factors which gave birth to this crisis are numerous but thereare two main factors:- 1) Bailout of large financial institutions after recession: U.S. government has pledged more than $11.6 trillion on behalf of American taxpayers over the past 19 months, ac- cording to data compiled by Bloomberg. 2)Huge Defence expenditure: Total defense expenditure by US govt. (base + war) in recent years has been following Year National Budget(in War Expenses(bn) Total(bn) bn) 2012 553 118 671 2011 549 159 708 2010 529 162 691 2009 520 146 666 *Source- www.usgovernmentspending.comThis huge amount led government to go for borrowings. These are the years when US wasfighting wars in Afghanistan and Iraq.The next important question is who is the major owner of these US sovereign debt instru-ments? 7
  9. 9. *Source http:www.treasury.govThis pie chart shows the owners of US debt. If US default then whole world economy will go fora toss. The owners of US debt instruments will be directly affected and it will trigger a chain ofevents which will ultimately prove a catastrophe for world economy.What’s next?Either the US raises the debt ceiling (and can then issue more debt), or it does not (and is thenbarred from borrowing to pay its bills). With a 2011 deficit of at least $1tn, the stakes are high.The second option points directly to default.Why doesnt Obama just raise the ceiling?Because the leader of the worlds largest economy does not have the authority. Any changes tothe debt ceiling need to be approved by Congress, and this has led to a protracted stalematebetween Republicans and Democrats.Why cant the two sides agree?Both the parties realize that the US debt needs to be brought under control, but have rather dif-ferent ideas about how to do it. Obama is proposing a 10-year, $4tn package of spending cutsand tax rises – including higher income taxes. The Republican Party supports a $2.4tn packageof spending cuts, but is not backing the tax raise. The upcoming elections of 2012 are playing acrucial role here.How has America been keeping afloat since May, when the debt ceiling was reached?This is done by stopping the payments to certain federal pension schemes, and by liquidatingsome of the schemes assets. Treasury secretary Tim Geithner has pledged that the shortfallwill be repaid once the ceiling is raised.Has the debt ceiling often been raised?It has been raised more than 70 times since the mid-1960s, and 10 times in the last decade. Itsnot been entirely one-way traffic, though, since Congress did vote to lower the limit twice in the1950s, during Americas postwar economic boom. 8
  10. 10. What impact would a default have?Some experts have predicted a major panic. Standard & Poors has made itclear that it would cut the US rating from AAA (the top) to D (the bottom).That would mean banks would technically be barred from using US debtas collateral with central banks (although these rules could be changed).As Gary Jenkins of Evolution Securities has rightly put it as "They wouldntdare, would they?" Even Bernanke has conceded that failure to lift the USdebt ceiling would throw the financial system into tremendous disarray.We all can just imagine the effects on world economy if US defaults.The road ahead:There are two main problems when it comes to raze out the US Dollar. Theballooning debt and the future interest costs add to 12 per cent of the gov-ernment’s tax revenue, which will grow beyond control. The only answer “One of thethe government has is to cut down spending, which is unlikely to happen, greatestaccording to Faber. The governments will either print money at enormous disserviceslevels. This will further aggravate the problems by increasing inflation.The scenario and future of debt crisis doesn’t seem to be in good health, as you can do aU.S. has bleak chance of resolve its worsening financial position. The man- man is toufacturing industry continues to contract, which leaves the nation with lend himvery little goods to export. The persistent current account deficits by money thatthe U.S. were creating an unsustainable boom in global credit that was he can’t paydestined to break down and result in a worldwide recession. So the onlysustainable solution for US is to go for enormous cut in expenditure. I just back “hope that US will find some sustainable way to get out of this debt spiral - Jesse Jonesbecause we live in the highly netted world economy where everyone isconnected to each other, so does our placements too. So let’s hope andpray that we don’t witness another recession. BY MADHUKAR & PRATIMA TIWARI II MBA C 9
  11. 11. RBI MONETARY POLICY – A LOPSIDED APPROACH“When you can’t cut the tree from one side then do it from the other side” that’s what the RBI isdoing in case of controlling inflation. RBI has increased key policy rate 11th time since March 2010with repo rate standing at 8%. Many economists called it “madness, some called it as lack of basicknowledge in macroeconomics but the intention behind it is to “hammer the inflation”.“It is important to recognize the absence of appropriate action for addressing supply bottlenecks,especially in food and infrastructure questions about ability of the economy to sustain current growth rate without significant inflationary pressures come to fore” this is the statement made by RBI governor D. Subba rao in the press conference. His intention is RBI has very little to do with supply side bottle necks in the economy to contain the inflation and it needs support from the central government to check supply shocks. Hence it is going by the other side that is reducing the demand for consumables in the economy by increasing the key rates. In fact when you want to remove excess liquidity in theeconomy you don’t need to take off excess liquidity already existing, but you can reduce pumpinginto economy. Then excess liquidity will be automatically readjusted. That’s what exactly the RBI isdoing by making bank loans dearer. This move reduces the demand and consumption in the econo-my which in turn reduces the prices of the consumables.Some say this move may hammer the growth as well. But according to D. Subba Rao, growth willtake care of its own. What needs to be checked is increasing prices. When higher inflation ismatched with higher salaries, small doses of rate increase fail to pull down demand. As peoplelearn to live with high prices almost unknowingly they prepare them-selves for higher inflation in future and then one day inflation spins outof control. Here RBI strategy is to maintain around 8% growth rate forsome time with these key rates and there by controlling the inflation innear future.But how far this strategy works out until and unless central governmentcannot remove supply side bottle necks, remains a big question. Whenthe banks loans get dearer, not only house and cars loan rates increase,but also rates for agriculture and its allied activities increase resulting in creating supply side bot-tlenecks again. Thereby turning out this strategy to be counterproductive. 10
  12. 12. Does RBI have nothing to do with supply side inflation? Yes, it may show some im-pact if the bank rates are allotted sector wise instead of affecting the economy as awhole. But the division of the sectors should be in such a way that they have lesscorrelation to other. To implement these strategies RBI and Central Governmentshould go hand in hand and help each other to stabilize the economy as a whole. Forexample whenever food inflation is more, central government may import fooditems for the short term demands and RBI should reduce rates on agriculture sectorthereby increasing supply and ensure that will not happen again in near future.Same strategy may be applied to other sectors and sub-sectors as well.Hence the need of the hour is the coordination between Central Government andRBI that will actually keep the economy under equilibrium. BY T.V.S.RAVI TEJA II MBA B OWNING A HOUSE! DREAM? OR REALITY?Home has been one of the basic necessities of life. Apart from food and clothes, people crave forshelter where they seek safety, affection and, sense of belongingness with the society. But in mod-ern context amidst inflation, owning a house is a dream which only bunch of people can afford. In-crease in interest rates by Reserve Bank of India by 50 basis points is only worsening the situation.Whenever the monitory policy is to be announced, one sector which pays close heed to it is realestate sector hoping that this time announcements will be favourable. But like the previous 10times, this policy has upset the industry.As per the RBI announcement: 1)Repo rate under the Liquid Adjustment facility (LAF) is up by 50 basis points from 7.5% to 8.0% with immediate effect 2)The Reverse Repo rate now stands at 7.0% with immediate effect 3)The Bank rate has been retained at 6.0% 4)The Cash Reserve Ratio of scheduled banks has been retained at 6.0% 5)Annual headline inflation has accelerated to 9.44% in June.Real estate sector is currently in a soup and hike has made it sourer. It has increased the burdenon the shoulders of existing as well as prospective buyers. Developers are also facing the heat of itwith increase in expenses. The cherry on the cake is RBI’s strict and tedious guidelines to banksbefore granting loans to real estate developers and buyers. 11
  13. 13. RBI has also asked banks to independently verify the authenticity of chartered accountant certificate, property valuation certificate, legal certificate, and guarantee/line of credit or any other third-party certification submitted by the borrower. This has increased the time period of sanctioning the loans. Be- cause of this, real estate developers are now looking towards external fund sources, which is more expensive. RBI statement can be proved detrimental to both industry and economy. There has been an 18% gross rise in construction cost over the last 2 years (2011 over 2009). As per DLF, steel and cement make 40% of cost of con- struction and civil costs (i.e. - steel, cement, labour) constitute around 70% of total costs. High global demand for commodities, higher production and trans- portation costs partly due to higher fuel prices has led to the rise in prices of commodities. Further, demand for skilled labour has led to the labour cost seeing a rise of 25% in the past decade. Input costs are continuously in- creasing, almost reaching to peak. It may effect in delay in old projects, change in product-mix, onetime cost adjustments or phasing out small players from the industry. Some can even think of passing extra cost to customers, resulting in slow sales and decreased demand. In the last 17 months, demand for steel, cement has fall down considerably. “Owning a This situation has put customers into confusion as to what to do. They home is a are not been able to think that they should buy the home now, fearing keystone of further increase in prices or wait for the right time when price will fallwealth.. both downare in a Buyers are in a favourable developersfrom one aspect that again. condition they position to negotiate with over price. In order financial to increase sales, builders can opt for distress sales to generate cashaffluence and flows. But still, expensive home loans are making it difficult for new emotional buyers to go for a purchase and increased interest rates are creating dif- ficulty for existing owners to maintain their budget. security” Thus there is no right or wrong time for purchasing home in today’s-Suze Orman context. The only idea is to grab the best price deal with proper docu- mentation leaving no further worries. BY NIDHI JAISWAL I MBA B 12
  14. 14. NISHKA EQUITY RESEARCH Orient Paper and Industries Orient Paper and Industries, Q1FY12 revenues grew 21% yoy to Rs5.33bnled by better than expected cement realization. Cement revenues grew 11.4%yoy driven by a sharp 29.4% yoy jump in cement realizations to Rs3565/teven volumes declined 14% yoy due to decline in cement demand in AP. Elec-trical division registered healthy topline with growth of 22.3% yoy. With bet-ter realization, Q1FY12 EBIDTA came in at Rs1.1 bn +54.6%yoy. OverallEBIDTA margins at 20.8% improved by 453bps yoy driven by 450 bps im-provement in EBIT margins of Cement division to 31.8% Cement EBIT/t stoodat Rs1133, +51% yoy. With 8% decline in interest charge, OPIL’s PAT atRs584 mn came in with a growth of 70% yoy. The Board has approved De-merger of Cement Business into a new wholly owned sub- Orient Cement Ltd(OCL). Post the necessary approval, OPIL shareholder will get 1 share of OCLfor each share held in OPIL. Stock trades at 6.6x FY12 P/ER & EV/EBIDTA of4X. OPIL’s cement business as the de-merger will ensure that the cement cashflows will be dedicatedly used for funding the growth of the business ratherthan supporting the losses of the paper division. CMP: 60 Target Price: 66 Stop Loss: 53 13
  15. 15. Hexaware Technologies Ltd. (HEXW) Hexaware Technologies Ltd. (HEXW) has posted a growth in revenue of nearly 33% on an annual basis and 5% on a quarterly basis to INR 3,341 mn . Revenue growth was aided by a 6% growth in volumes while pricing remained stable during the quarter. EBITDA, at INR 511 mn, clocked a growth rate of 201% YoY and 12% QoQ. Strong growth of operating margin of HEXW was aided by the strong volume growth in this quarter. A corre- sponding improvement in EBITDA margin too was witnessed. Margin im- proved by nearly 850 bps on a YoY basis and 101 bps on a sequential basis despite the increase in compensation of its off shore employees. Net Profit came in at INR 603 mn for the quarter, reflecting a growth of 251% on an annual basis. On a sequential basis, PAT witnessed a growth of 12%. Net Profit margin was 18.0% in Q1, a 1,232 bps growth YoY. Other Highlights: HEXW signed its largest deal to-date during Q2. An agreement worth ap- proximately USD 177 mn was signed with an existing US client; incremental business of USD 100 mn and extending existing business worth another USD 77 mn over five years. Head count as of Q2 stood at 7,419, up by 755 employees. 14 new clients were added taking HEXW’s total client base to 190. BY CMP: 92LALIT GOEL Target Price: 101 II MBA A Stop Loss: 77 14
  16. 16. FINANCE BUZZ1. Peace Dividend:A political slogan popularized by US President George H.W. Bush and UK Prime Minister MargaretThatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defencespending. It refers to the money that becomes available in a national governments budget when thecountry is at peace.2. Lease Extension:A legal agreement that extends the term of a rental agreement. The lease extension document shouldname the parties to the agreement, provide the dates on which the extension begins and ends, andreference the earlier agreement that is being extended. Lease payments do not have to remain thesame under a lease extension.3. Price creep:A steady yet gradual increase in the market price or valuation of an asset. Because of price creep, of-tentimes investors will eventually be less reserved about paying a higher price for a particular assetor investment. In the financial markets, price creep can occur when investors gradually assign a high-er valuation to a particular stock or security.4. Inflation HedgeAn investment designed to protect against inflation risk. An inflation hedge typically involves invest-ing in an asset that is expected to maintain or increase its value over a specified period of time. Alter-natively, the hedge could involve taking a higher position in assets which may decrease in value lessrapidly than the value of the currency.One example is stock of companies that operate in the naturalresources industries.5. SeasoningThe length of time a debt security has been publicly traded. Seasoning determines if a premiumshould be made for the security in the secondary market. The debt security can be "unseasoned" ifhas been traded for less than a year, or "seasoned" if it has been traded for over a year with a goodpayment track record.6. Stock basher:An individual that seeks to artificially reduce the value of a companys stock by spreading misinfor-mation about the company. This illegal practice is generally undertaken with the intention of short-selling the stock in order to profit from a drop in price, or purchasing the stock after the price drops. BY MANISH SANTANI II MBA A 15
  17. 17. PHOTO FINDThe given below are the celebrities in the corporate world. Find outwho they are 1) _______________________ 2) _____________________ 3)_______________________ 4) _____________________ 5) _____________________ 16
  18. 18. FINANCE QUIZ1) The 11th Five Year Plan is termed as plan for……………..2) Euro is the currency of European Union. When did it come into being?3) What is a Bank, which has capital and reserves of over Rs. 5 lakhs called?4) What does devaluation of a currency mean?5) Which sister organization of the World Bank provides long-term loans at zero interest to the poorest developing countries?6) Which Public sector bank is planning to setup 600 financia inclusion “Before centres, 300 by March-end 2011 and another 300 by March-end borrowing 2012? money from a7) Who won the prestigious P.C.Mahalanobis Award (Medal) for 2010? friend, decide which you8) What system did BSE launch recently? need most”9) Which sister organization of the World Bank helps private activity -Anonymous in developing countries by financing projects with long-term capital in the form of equity and loans?10) The International Bank for Reconstruction and Development (IBRD) is better-known as……………………. By SHILPI KUMARI II MBA B 17
  19. 19. CROSS WORDAcross1. a company known as mini L&T2. name the building in which BSE is located3. FICO score provider5. a dividend carrying an attached franking or tax credit7. the process of calculating the present value of a future amountDown1. implies that a business is managed to maximise the difference between revenues and expenses in any period4. interest rate tsars in US6. a discrete number which identifies each business registered with the ATO so that the regulation of taxation is facilitated8. highest paying dividend company in India9. a legal structure where property is nominally owned by one party on behalf of other parties BY SKANDAN YN II MBA A 18
  20. 20. NISHKA CAMPUS POLLQ1)As per the survey:-Out of 109 respondents, 46 (42%) believe that RBI should stop increasing the interestrates, Whereas 23(21%) are of the opinion that there is a necessity to continue thehike.Best Answer:It’s high time to take a pause on this act. Economists and bankers fear a hit on theinvestments and profitability of companies due to continuous hike in rates. A wellcalculated forecast on the change in prices of oil and food in monsoon in connectionwith the global changes in price of commodities is required to control the rate hikesand curb the inflationary related problems. 19
  21. 21. Q2)As per the survey:-Out of 109 respondents, 58(53%) believe that India has sufficient liquidity to man-age a possible debt default by U.S, Whereas 40(37%) believes that India is strongenough to face the challenge.Best Response:Indian economy is becoming stronger day by day. We have invested very lessamount in U.S markets when compared to China or Japan. So, even if there is caseof debt default by U.S, India has enough liquidity to manage it. BY PRAVEEN KUMAR CH II MBA D 20
  22. 22. VERIFY YOURSELFPhoto Find: 1) C. RangarajanChairman of the PMEAC 2) NoutWellink, Chairman of the Basel Committee. 3) Carlos Slim, Chairman & CEO of TELMEX.(richest person in the world) 4) Larry Ellison, CEO of Oracle Corporation. 5) C B Bhave, Former Chairman of SEBI.ANSWERS FOR FINANCE QUIZZ 1) India’s Education 2) 1999 3) Scheduled Bank 4) Decrease in the external value of money 5) International Developmental Association 6) SBI 7) Mr. Abhiman Das, Asst. Advisor in the Department of Statistics and Information management, RBI 8) Index-based circuit breaker system 9) International Finance Corporation 10) World Bank 21
  23. 23. CROSS WORD:Across1. PUNJLLOYD—a company known as mini L&T2. PJTOWERS—name the building in which BSE is located3. FAIRISAAC—FICO score provider5. FRANKEDDIVIDEND—a dividend carrying an attached franking or tax credit7. DISCOUNTING—the process of calculating the present value of a future amountDown1. PROFITMAXIMISATION—implies that a business is managed to maximise the difference between revenues and expenses in any period4. FED—interest rate tsars in US6. ABN—a discrete number which identifies each business registered with the ATO so that the regulation of taxation is facilitated8. ONGC—highest paying dividend company in India9. TRUST—a legal structure where property is nominally owned by one party on behalf of other parties “Business is the art of extracting money from another mans pocket without resorting to violence” -Max Amsterdam 22
  24. 24. ABOUT “NISHKA”NISHKA is a monthly finance magazine brought by the students of the finance clubof CHRIST UNIVERSITY Institute of Management Kengeri Campus. The Idea behindcoining the issue of this magazine is to establish a learning among the studentswhich helps them to gain an insight about the world of finance. - TEAM NISHKA FACULTY CO-ORDINATORS Prof. Anirban Ghatak Dr. Jeevananda CAMPUS POLL CO-ORDINATORS Neizel M. Souza Flavia Deepika Tellis Praveen Kumar CH Azhagumathivanan R ARTICLES EDITORS Anish Kumar Singh Divyashree R Aarthi K Madhav B Neha Singh CREATIVE & DESIGNING RETROSPECTION Gowthaman N Manish Santani ECONOMIC ROLLERS CROSS WORD Prateek Lakhmani Skandan Y N STOCK ANALYSIS QUIZ Lalit Goel Shilipi Kumari 23

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