4. Leanings:
I understood various points from this video….he spoke
about his initial career of legal background .his fathers
friend
recommend him to pursue law. Despite legal
background he
was passionate about lawyer profession.
He spoke about his article ship in law firm & past few
degrees he decides to go for Solicitor degree. After
successful completion of solicitor degree he prefer
Corporate law & he started his journey ‘Crowford
bayley &
co.as a senior associate, prior to joining JSA he was
partner
for six years with Amarchand & Mangaldas and Suresh
A.
5. As far as client concerned forget your profession, your first
goal is to understand the client & his needs . Your honesty &
sincerity towards service will count at the end of deal. he
spoke about
a)Quality service
b)Creating awareness about service
c)Sharing knowledge
Several laws involving every day including some
international
law as well. We must to updated with these changes
including
advanced technology development .
Spoke about Growth & Succession
All large organization started from ZERO. Without extra
ordinary effort business can not grow on larger scale. It has
to
6. Dynamic design of website, innovative marketing
programs,
lean manufacturing, production planning and most
importantly hiring good professionals for business is a
key
succession of organization.
Spoke about human mistakes. All humans are bound to
make
mistakes, it will always happened but need to accept in
a
certain level. Every failure is a lesson and it is a
continuous
process . We need to learn from mistakes ,lessons &
look
forward it .
8. Leanings:
Donear brand has established in 1977. It is one of
major and
respected band in the textile industry. After completion
of
education Mr. Agarwal set up the first manufacturing
facility
at Murbad ( Maharashtra).He defined new standards in
the
field of Fabric Manufacturing.
Spoke about Donear Suitings career path.
a)Gold medalist in Textile industry.
b)He won the Industry & Excellence award (year
2010)from
the textile association of India.
c)He has set up State of Art Manufacturing facilities in
9. Spoke about modernization of Textile business
Technology has major impacted in Textile business
also he
believes in KARMA. People should clear about goals
when
joining any organization ,do not hesitate to
implementation
of new things , Every time jumping or changing
organization
is not a solution for bright career. People need to ask
for
growth in organization.
11. Learnings:
Dewan housing Finance Ltd.the second oldest housing
finance
institution in India and flagship company of Wadhwan group.
Spoke about his journey in DHFL company. He joined as a
Management Trainee and progressed to the role of National
manager in 10 years and now hold CEO position.
Spoke about current young generation . Student should first
prefer Industry rather than company. when starting of career
journey student first believe appreciating yourself .
Appreciating 1 year forward or 5 year forward will always has
a price value.
Spoke about difference working culture in India & USA.Basic
law ,traffic condition ,normal activities is very strong in USA
but some sort of lacking in India.
12. In terms of ethics & integrity towards working as similar
as
USA.It is not too much of changes or differentiation in
terms
of pay, working opportunity, tax structure, corporate
governance. Going forward he added, much more story
and
growth will come in Housing finance industry .
Housing Industry in India well regulated and in future
younger
generation will play crucial role in Housing Finance
industry.
Work with sincerity , dedication, passion towards the
profession then success will come with you .
15. Learnings
1)Before starting retirement planning we must need to
understand financial planning.
2)We need to first make the plan, Goal & objective of
investment.
3)We need to make sufficient corpus for retired life
where
Income is almost ZERO.
4)Four steps involved in financial planning. Which is
called
PAID
a)P=Project the Income
b)A=Adjust the income but consider inflation.
c)I =Different sources
d)D=Decide future retirement income on current
investment.
16. Retirement planning most important in early stage
of life especially in India because
a)Our government not yet planned any particular social
security product in a larger & longer basis.
b)Medical expenses are skyrocketing and continuously
rising
due to high inflation.
c)Longevity increasing in urban as well as rural part of
India.
d) Every company not offering Employer provided
retirement.
plan also these plans depending upon companies
policy e.g.
some companies offering this benefit after working for
many
17. Asset Allocation
Asset allocation will play major role while making of
retirement planning.
Always use diversified investment tools for long term
retirement planning .Inflation factor must considered
when
making any kind of Investment in Retirement planning .
19. Learnings
1)Stock Exchange is a platform where buyers &
sellers
meet to buy & sell shares.
2)Canalize savings to investment .
3)Different kinds of participants on stock exchange
platform such as
(a)Governments (b) Companies (c)Institutions
(d)Retail Investors (e)Mutual Funds (DII’s)
(f)High Net worth Individuals (HNI’s)
(g)Cash Rich Companies & (h)Foreign Institutional
Investors (FII’s)
4)FII’s have been playing major role in Indian Stock
Market
but Retail investors which are backbone of any
capital
market. Who invest less than 1lakh rupees which is
called
20. 5) BSE 1st Stock exchange started on 09th July
1875
6)In 1992 FII’s were allowed in India to invest in
Indian
Stock market.
7)In1993 private sector mutual fund were
launched
8)In1996 first time SEBI came out with guidelines
of
Mutual Fund Industry.
9)Stock market consider one of the Barometer of
the
economy .
Secondary market :
-It is known as the stock market.
-Companies trade on the stock market.
-On BSE 6500 companies are listed.
21. Large cap stock= market cap greater than Rs.9000
crore.
Mid cap stock = market cap between Rs.2500 to
Rs.9000
crore
Small cap stock = market cap between Rs.2500 to
Rs2500
crore.
Micro cap = less than Rs. 250 crore.
Retail Investors are backbone of any capital market but
country like India only 1.5 crore equity investors. Only
3%
household savings in equity markets. Overall world
average is
only 35 %. RGES recently launched equity oriented
23. Learnings
Assetology is a combination of science & art. Financial
asset,
Physical asset these two important assets we hold in
our
life.
Stocks, mutual Fund units,Insurance,Bonds or Money
market
instruments are Financial assets.
While Real estate & Gold these are Physical assets.
In asset allocation model we need to required
1)Strategic allocation & 2)Tactical allocation.
While planning of asset allocation we need to must
considered
Macro & Micro factors.
24. -increase in mortgage interest payments .
-It badly affects corporate profitability.
-The cost of Government interest payments which could
lead to higher
A)If interest rates goes down:
-Positive impact on Debt fund return.
-Decrease in mortgage interest payments.
-decrease in bank deposit savings rate.
-Average or less return from savings instruments
especially
from debt & debt related instruments.
26. Learnings
A)Current Account and
B)Capital Account
These two segments in Balance of Payments.
A)Current Account :
Its include service transaction, include cost of Travel &
Transportation, Insurance, Income & payments of
foreign investments.
B)Capital Accounts :
The capital account shows international flows of loans
&
investments. It also represents the country’s foreign
assets &
liabilities.
Four type of capital flows
27. Components of Balance of payments:
-Current Account
-Capital Account
-Unilateral Payments Account
-Official settlement Account.
Legally undertaking transactions recorded in Balance of
Payments. It is major significance on foreign currency.
Balance of Payments deficit results in demand for
foreign
currency will increase & domestic currency started
falling
down and vice versa. Policymakers ,businessmen's,
Academicians, students need to study Balance of
Payments
carefully.
29. Learnings
A Mutual Fund is a collective investment that allows
many
investors with a common objective to pool individual
investments and give to a professional manager who in
turn
would invest these monies in line with the common
objective.
3 types of Mutual Fund schemes:
-By constitution (Open ended & close ended)
-By investment objective
-By nature of investment
Mutual Fund is a Tailor-made investment of finance and
investment objective of Mutual Fund is
-Growth – Equity - (High degree risk)
-Income – Debt – (Medium risk)
30. -Balanced – Equity & Debt – (Medium risk)
-Money Market – Liquid Fund – (Low risk)
-Tax saving (ELSS) – Equity – (High risk)
-Specialized (sector) – Equity – (High risk)
-Assured return – Equity & Debt.
Assured return is a myth in Mutual Fund investments. There
is
no any guarantee or assured return in any Mutual fund
scheme. Mutual Fund is the only product which we can get
professional management, convenience ,tax benefits,
liquidity
& diversification. Individual decide own risk appetite before
investing in any Mutual fund. According to his/her goals for
short term Bank & Liquid funds are good options, for medium
term Debt & debt related products and for longer term Equity
& equity oriented Mutual Fund are good options.
31. Individual also need to consider what charges, fees &
expenses involved while investing in any Mutual Fund
scheme
such as transaction cost, annual recurring expenses &
initial
issue expense.
Systematic Investment Plan (SIP)
SIP is a well known investment vehicle offered by
mutual
funds to investors. The frequency of investment is
usually
weekly, monthly or quarterly.
33. 1. BANKS NOW HAVE MORE
OFFICERS & FEWER CLERKS
HIRING TRENDS
-52 per cent officers in the banking system now as
opposed
to just 38 per cent ten years ago.
-Most private sector banks hire officers only.
-Technology has rendered clerical functions redundant.
-Officer-only model driven by the desire to have better
industrial relation.
-Clerks and only junior level officers allowed to go on
strike.
-The new approach has pushed up the average
employee
cost of PSBs.
34. A banker points out an additional benefit of hiring
more officers: "It gives new employees a sense of
responsibility. Once that happens, they do not insist
on
fixed working hours in pursuit of achieving targets."
Unfortunately, this aspect has not reflected on an
increased efficiency in PSU banks. RBI's "Report on
Trend and Progress of Banking in India 2012-13"
noted
that "for public sector banks, which account for the
largest share in the Indian banking sector, the
average
efficiency scores were above that of private sector
banks over a major part of the period under
consideration (2000 to 2013). However, they lagged
slightly behind the scores of private sector banks after
2010."
35. 2. CHARGES THAT AN ULIP
ATTRACTS?
A Unit Linked Insurance Plan or ULIP as it is popularly called
is a
combination of insurance and investment. While the ULIP
does
not provide you with as great an insurance as a term policy
would, it does provide with a an insurance cover, while also
an
investment opportunity. Insurers tend to differ in the charges
and they can undergo a change over a period of time.
a) Premium Allocation Charges.
b) Mortality Charges.
c) Fund Management Fees.
d) Service Tax Deductions.
36. 3. RBS RETAINS ITS B.O
BUSINESS EXCEPT BANKING
OPERATION.
Britain’s largest state-owned bank, Royal Bank of
Scotland
(RBS), has decided to shut down its banking operations
in
the country but will be retaining the back office.
“We are looking at running down the India business but
we
will be retaining the back office. We will have to sit
down and
take a final call on it. But will begin talks with Reserve
Bank
of India (RBI) to see what is the process as they are
37. According to people familiar with the development, the
back
office in India employs about 12,000 people and is a
key
global hub and is used to support finance and other
operations in other markets.
Earlier this year, the lender moved 60 back-office roles
from
the UK to India. RBS has been in the process of
shrinking its
business in India. In May 2013, the lender had
announced it
had started the process of consolidating its retail and
commercial banking business in India. As a result, RBS
had
38. 4. BANK'S NPA MAY RISE TO
5.7% BY MARCH 16: ICRA
Global rating agency ICRA has warned that gross non-
performing assets (NPAs) of banks in the next financial
year
may jump to 5.1-5.7 per cent of advances by March
2016 as
against 4.5 per cent in December 2014, citing new
regulatory
norms for restructured loans, Business Standard
reported.
With the end of the regulatory forbearance regime for
restructured loans in March 2015, loans restructured
from
39. However, the rating firm maintained that total stressed
advances (gross NPAs plus standard restructured
advances)
could moderate in FY16 as pickup in economic activity
and
RBI's norms for flexible structuring of loans may help
in
reducing the flow of impaired assets, as per media
report.
40. 5. GOVT APPROVES 100% FDI
IN MEDICAL DEVICES
The central government has approved 100 per cent
foreign
direct investment (FDI) in medical devices via the
automatic
route. The move came as a relief to the Indian health
care
sector, because at the moment, India imports about 70
per
cent of its requirement for medical devices.
Under the automatic route, there will be no need for
Foreign Investment Promotion Board’s permission to
acquire an existing company or set up a new
manufacturing unit in the medical devices sector.
41. In this age of super specialization, if medicines and
Pharma
are one aspect, in which India has attained a certain
amount
of core competence, we still haven’t achieved that in
medical
devices, particularly which are to be installed in human
body
for the purpose of treatment,” Finance Minister Arun
Jaitley
said.
According to various reports, the health care sector in
India
is expected reach $150 billion in 2017, from $80 billion
in
2012.
42. 6. RISKS INVOLVED IN
MUTUAL FUND INVESTING
Investing in Mutual Fund can be risky depending on the type
of fund you are investing. Don't forget the famous sentence
"Mutual fund investments are subject to market risks. Please
read scheme information documents carefully before
investing ".
Such as investing is stock market will carry high risk and
vastly
depend on the market performance. If you are looking to
invest in Gilt bonds, risk will be less.
Risks involved in Mutual Fund Investing:
a)Market Risk: The main risk involved in Mutual Fund is
43. Underperformance of fund which you invested in. Any
changes in
the economy or any news related to the company
performance
may hamper your NAV performance.
b)Change in Price: In case of debt funds or Gilt funds, any
change in interest rates can lead to lower NAV.
C)Default Risk: If investing in debt or hybrid funds which
invest mostly in bonds and debt instruments. If bonds of a
particular company and the same defaulting on repayment
affecting the performance.
d)Credit Risk: Any downgrades by the rating agencies
cause
lower prices and increase the changes of issuing company
defaulting.
The other factor is high fees involved in Mutual Funds.
44. 7. “MATCH ACTIVITY WITH
REVENUE & EXPENSE”
Everyone is trying to control costs to improve numbers
primarily because the economy is not growing at the same
pace at it did in the past. In this scenario, what will be the
challenges for cost accountants?
Until recently, the majority of Indian companies, except a few
big ones that have the resources to manage, relocate and
change product lines, did not even understand the concept of
cost. Indian companies only did what was given in law.
Beyond
that, they did little, especially on the cost front. That’s
because for a long time Indian companies were insulated. It’s
a legacy of our system.
45. India was primarily a demand-driven economy. So, the
strategy of Indian companies was to wait for the
demand to
go up, then secure the supply and charge whatever
price they
wanted on a cost-plus basis. However, now, for the
companies, cost also includes inefficiency, all kinds of
wastages, management discretionary expenditure and
so on.
But nobody is bothered about it as there’s neither any
disclosure nor any restriction. The only restriction is that
the
market has now changed into a buyers’ market. It’s no
longer
a sellers’ market, as it used to be for a long time (in an
insulated economy). Today, the buyer is free to choose
46. 8. EMI VS SIP
If you buy a product or service via EMIs ( equated
monthly
installments), you will pay more than the actual price.
However, if you save this sum through SIPs in mutual
funds,
you will shell out less than the sticker price. Here's a
comparison of the two options.
5 THINGS TO KEEP IN MIND
1) The SIP option does not work for all assets, only
discretionary purchases. It does not make sense to wait
for
6-9 months to buy a fridge or a laptop.
2) The EMI option is costlier, but you also get to use the
47. 3) The SIP approach has not taken inflation or taxation
into account. Certain items, such as cars or gadgets,
could become costlier if you wait for 1-2 years.
4) Some expenses, such as the fees for an MBA,
cannot be postponed. The SIP option can work only if you
plan well and start saving 2-3 years in advance.
5) EMIs have been calculated on the base amount. There
could be additional charges. However, the self-employed
can claim tax deduction on interest if it is used for work.
48. 9. BALANCED FUNDS GIVES
INFLATION-ADJUSTED
RETURNS & TAX EFFICIENCY
Smart investors rely on equity-oriented balanced funds
because they offer the best of both worlds: the tax
efficiency
enjoyed by equity funds and the ability to give inflation-
adjusted returns. Investors also prefer balanced fund
because
of the perceived lower risk. Most balanced funds keep
their
equity exposure between 65% and 75% (the minimum
threshold is 65% according to tax laws) and the debt
portion
49. "Diversified equity funds keep a small cash component and
sometimes increase cash levels to 15-20%. So, there is not
much difference between the two from the risk perspective,"
says Raghvendra Nath, managing director, Ladderup
Wealth
Management.
Balanced funds are also increasing their risk levels to beat
the
Nifty — a large-cap index with 100% equity exposure —
across time periods. For example, HDFC Prudence Fund
and
HDFC Balanced Fund, having AUMs of Rs 6,528 crore and
Rs
1,773 crore, respectively, posted one-year returns of 64%
and
56%, respectively. The Nifty, on the other hand, posted 33%
50. 10. COMPANIES WERE
SENSEX IN 1978 ARE STILL
THERE IN 2014.
The BSE Sensex or the S&P BSE Sensex as they call it
today is a list of 30 companies that form part of the BSE
Index (Sensex). These companies are taken from diverse
sectors and with a high market capitalization. The base
value of the S&P BSE SENSEX is taken as 100 on 1 April
1979, and its base year as 1978-79, which is why we
have
taken companies that were there in 1978.
Here is a list of companies that formed part of the
Sensex in 1978.
51. * Hindalco (Sensex stock in 2014)
* HLL (Sensex stock in 2014)
* ITC (Sensex stock in 2014)
* L&T (Sensex stock in 2014)
* M&M (Sensex stock in 2014)
* Reliance Industries (Sensex stock in 2014)
* Tata Motors (Sensex stock in 2014)
* Tata Power (Sensex stock in 2014)
* Tata Steel (Sensex stock in 2014)
