Consensus EPS

Consensus EPS is average of all the analysts expected EPS within that region universe or market

Types of Shares

Non-voting stock Means

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A Stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. This type of share is usually implemented for individuals who want to invest in the company’s profitability and success at the expense of voting rights in the direction of the company. Preferred stock typically has nonvoting qualities.

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Multiple Voting Shares Means

Securities which entitle the holder to exercise a greater number of votes per security than the holder of any other class or series of securities of the Issuer

Securities which are issued at a price per security which is significantly lower than the market price per security of any class of listed Equity Shares

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Restricted Shares Means

Equity Shares that are not Common Shares and may include Multiple Voting Shares, Non-Voting Shares, Subordinate Voting Shares and Restricted Voting Shares.

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Restricted Voting Shares Means

Securities which carry a right to vote if the number or percentage of securities which may be voted by a Person or group of Persons is limited

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Subordinate Voting Shares Means

Restricted Shares that carry a right to vote but another class of securities is outstanding that carries a greater right to vote on a per security basis;

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Voting Shares means

Securities that carry the right to vote under all circumstances if the Issuer also has a class of Restricted Shares

Absolute and relative return

Absolute return - is simply whatever an asset or portfolio returned over a certain period.
If a mutual fund returned 8% last year, then that 8% would be its absolute return. Pretty simple

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Relative return - on the other hand, is the difference between the absolute return and the performance of the market (or other similar investments), which is gauged by a benchmark, or index, such as the S&P 500

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For example - if the absolute return of your portfolio is 10% and the performance of the S&P 500 during the same time period is 6%, then you have a relative return of 4% greater than the market (10% - 6% = 4%). If, however, during this same time period the S&P 500 returns 15%, then you have a relative return of -5% (10% - 15% = -5%).

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Why is relative return so important?

Because it is a way to measure the performance of actively managed funds, which should get a return greater than that of the market. After all, you can always buy an index fund that has a low management expense ratio (MER) and will guarantee the market return. If you're paying a manager to perform better than the market and the investment doesn't have a positive relative return over a long period of time, it may be worth your time shopping around for a new fund manager!

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Relative return can also be used within a context smaller than the entire market. For example, a technology fund's performance could be measured or benchmarked against other technology funds.

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The bottom line is that absolute return does not say much on it's own. You need to look at the relative return to see how an investment's return compares to other similar investments. Once you have a comparable benchmark in which to measure your investment's return, you can then make a decision of whether your investment is doing well or poorly and act accordingly

Diff between Outstanding Share and Issues Shares

Outstanding Shares

Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the company are not considered outstanding stock.

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Shares outstanding are common shares that have been authorized, issued, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury shares, which is common stock held by the corporation

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Shares outstanding can be calculated as either basic or fully diluted. The fully diluted shares outstanding count includes diluting securities as options, warrants or convertibles.

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This number is shown on a company's balance sheet under the heading "Capital Stock" and is more important than the authorized shares or float. It is used to calculate many metrics, including market capitalization and earnings per share (EPS).

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Diff between Outstanding Share and Issues Shares

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Issued Shares: The number of shares that has ever been sold to and held by the shareholders of a company
Includes stock that has been repurchased by the company
Does NOT include shares that have been retired

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Outstanding Shares: Stock currently held by investors.
Does NOT include stock that has been repurchased by the company

Cash Free/Debt Free

In merger and acquisition seller and a buyer often state that the target company or business is to be acquired on a "debt free/cash free" basis. Similarly, if there are multiple potential buyers of a target business, the seller may insist that each bidder makes an offer on a "debt free/cash free" basis. It is therefore important to understand and agree upon the meaning of "debt free/cash free".

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Typically, if a business is to be acquired "debt free", most parties will intend that all external debts (i.e. bank debts) be repaid upon completion. However, what about trading debts arising in the ordinary course of business? What about hire purchase and finance leasing agreements or intra company debts? Do these also constitute "debts" which should be discharged upon completion in order to achieve a "debt free/cash free" position?

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A sensible starting point for the debate is to identify exactly what debt the target currently has, and more specifically the likely level of that debt at the point of proposed completion. "Debt free" can be achieved in a number of ways:

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1) The target repays the debt prior to completion (beware of financial assistance issues);
2) The seller repays the debt prior to completion;
3) The debt remains in the target company, with arrangements put in place to discharge the debt immediately following completion (beware of financial assistance issues); or
4) The buyer assumes the debts but reduces the purchase price by an amount equal to the debt.

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As regards the concept of a target being acquired "cash free", again a sensible starting point is to agree what is meant by "cash". Usually, the term cash free does not mean that the seller will be entitled to empty the target bank accounts immediately prior to completion. A more likely intention is that the seller will be permitted to remove any "spare" cash before the target is sold. "Cash free" can be achieved by using the "spare" cash in a number of ways including:

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1) Repayments of indebtedness (which goes towards achieving "debt free");
2) Pre-completion dividend (subject to the target having sufficient distributable reserves);
3) Purchase of own shares (subject to the target having sufficient distributable reserves); and
4) PENSION payments to individual sellers. or
5) To repay any other liability

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It is important to remember that the buyer's interpretation of "debt free/cash free" will almost certainly be made on the assumption that the target company will be left with adequate working capital. The buyer will normally expect that the target will be able to continue to trade for the foreseeable future immediately following completion. Again, it is vital that the parties discuss and agree what constitutes adequate working capital from the outset.

Diff Between BG & LC

Bank Guarantees and LCs are financial instruments often used in inland or international trade when suppliers or vendors do not have established business relationships with their counterparts. The difference between the two instruments is the position of the bank relative to the buyer and seller of goods or services. The difference is as explained below.

A letter of credit is a bank’s DIRECT undertaking to the supplier (called the beneficiary) to pay. When a letter of credit is in use, the issuing bank does not wait for the buyer to default, and for the seller to invoke the undertaking.

In contrast, a guarantee is a written contract stating that IN THE EVENT the primary party (the buyer) is unable or unwilling to pay its dues to the supplier the bank, as guarantor to the transaction the BG issuer would pay (the client's debt) to the supplier.

In other words, a bank guarantee is an undertaking of a bank on behalf of its customer. But this comes into play ONLY WHEN the principal party (the buyer) has failed to pay its supplier. (Do note this key point.)

Essentially, the bank becomes a co-signer for its customer's purchases.

Hence, in a BG the initial claim is still settled primarily (i.e., first) against the bank's client, and not the bank itself. Should the client default, ONLY THEN would the bank (which has issued the BG) agree to pay for it's client's debts on behalf of its client. This is a type of contingent guarantee.

A bank guarantee, therefore, is more risky for the merchant and less risky for the bank. But this is not the case with a letter of credit (LC).

Financial Abbreviation & jargon

Fiscal consolidation -

Is a policy aimed at reducing government deficits and debt accumulation.

Fiscal expansion -

An economic expansion is an increase in the level of economic activity, and of the goods and services available in the market place. It is a period of economic growth as measured by a rise in real GDP. ...

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What Is a Free Trade Agreement

A free trade agreement is a pact between two countries or areas in which they both agree to lift most or all tariffs, quotas, special fees and taxes, and other barriers to trade between the entities.

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The purpose of free trade agreements is to allow faster and more business between the two countries/areas, which should benefit both.

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The theory refers only to aggregate wealth and says nothing about the distribution of wealth. In fact there may be significant losers... The proponent of free trade can, however, retort that the gains of the gainers exceed the losses of the losers."

Comprehensive Economic Cooperation Agreement

The Comprehensive Economic Cooperation Agreement (CECA) is an agreement between two countries to strengthen trade of goods and services
It is like FTA, till yet I haven’t found any technical difference between CECA & FTA. As pert definition it looks same
If any of you know Technical differences between these two please give me buzz

Gayan on EPC (Environment Business)

These days I am associated with Hindustan Dorr-Oliver, an IVRCL Group Company, Hindustan Dorr-Oliver also known as HDO, website is www.HDO.in . HDO is an EPC company having excellent expertise in Mineral, Water, Fertilizer-Chemicals and Pulp-Paper

HDO Business

In non technical and lay man language – HDO constructs plants, A full plant construction work is divided in to various packages (process) which is not actually done by plant owner like “Reliance refinery, TATA steel, JINDAL Steel” etc. Plant owner ask for bid from technical company, based on lowest quotation and technical expertise’s work allotted to winners.

Today by this post I am trying to give some GAYAN on HDO water management skill and in brief what kind of activities HDO does and what that activity is.

Activities HDO do (Water/Environment Management)

RWTP (Raw water treatment Plant)

RODM (Reserve Osmosis Demineralization Plant)

ETP (Effluent Treatment Plant)

STP (Sewage treatment plant)

FTP (Fume Treatment Plant)

In Brief what this activity means

RWTP (Raw water treatment Plant) – RWTP is use to refine Row water (natural Water from river) and make is suitable for Industrial use. This activity is needed since raw water consist dust which need to remove before using in plant. If we will directly use, it will damage plants. You can find this plant with all municipal corporations since they use this to refine river water to make it suitable for drinking purposes.

RODM (Reserve Osmosis Demineralization Plant) – This plant is mainly used to further refine output of RWTP or Drinking water. Recall all drinking water available in the market is known as mineral water, it means mineral/drinking water contains some kind of minerals which is not dangerous for human consumption but dangerous for some specific industrial consumption. Hence those industry require de-mineral water, this RODM "as name suggest" process raw water and demineralized it to make it suitable for industrial consumption.

ETP (Effluent Treatment Plant) – we all know all industry produce Dirty water which is not good for environment hence Gov make it compulsory for every plant to have this process to free those Industrial water from harmful chemical and make it appropriate for environment. This ETP process is mainly use to refine those affected industrial water and make it suitable for environment. Please note output of ETP is just to make this right for environment; it doesn’t mean it is suitable for drinking purposes.

STP (Sewage treatment plant) – STP do the same activity as explain for ETP but for municipal water (gutter toilet etc.)

FTP (Fume Treatment Plant) – This plant is use to refine fumes; if you have seen any boiler anywhere you can easily understand this. Just imagine one boiler as mentioned below.

Every boiler generate fume (Vapor, gas, or smoke, especially if irritating, harmful, or strong.) which is dangerous for environment since those fume contain dust chemical etc. hence one process is needed to remove those chemicals. The process used to remove those harmful chemicals are called FTP (Fume Treatment Plant)

By this post I was just trying to give some information about Water segment of EPC business.

For mineral - Just wait for some time, EPC mineral process will follow shortly

CA Abhinav

Now countries are going bankrupt

Earlier it was companies that were going bankrupt, now countries are turning belly up. The latest crisis in Greece threatens world's financial stability at a time when many countries are slowly recovering from the global recession.

Rating agency has warned of a severe risk of contagion as it expects the euro zone's debt crisis to destabilise the banking sector in several European Union countries. Stock markets across Europe have already crashed, affecting markets across the world. The euro hit a 14-month low against the dollar.

On May 10, the Eurozone countries and the International Monetary Fund finally agreed to a $1-trillion financial aid package for Greece, on the condition of implementing several austerity measures. The rescue package is aimed at ensuring financial stability across Europe. Analysts say this could have come earlier to save many other countries from falling into a deeper crisis.

Eurozone countries have total government debt worth 6 trillion pounds. While Germany accounts for 1.4 trillion pounds, while Greece is liable for 250 billion pounds.
However, the crisis is unlikely to have a major impact on Asian economies apart from Japan. While countries like India may be unaffected by the Greece crisis, many countries in the Euro zone face a grave crisis.

''As far as India is concerned, the impact on us will be minimal. In fact, in the short run - that is, purely in the short run - it might help us in terms of India being regarded as a relatively safe haven,'' Finance Secretary Ashok Chawla has said.

Greece's downfall had been scripted deftly by its governments. From one of the fastest growing economies in the Eurozone during the 2000s, Greece has now become the main culprit for this financial crisis.

From 2000 to 2007, it grew at an annual rate of 4.2 per cent as with the inflow of foreign capital into the country.

However, the global financial crisis in 2008 had hit Greece severely. Two of its major revenue streams, tourism and shipping were badly hit. The government of Greece misreported economic statistics in a bid to keep up with the monetary union guidelines.

Corruption and cover-ups added to its mounting debt. Greece had paid Goldman Sachs and other banks hundreds of millions of dollars as fees for arranging transactions that hid the actual level of borrowing since 2001.

In May 2010, the Greek government deficit was estimated to be 13.6 per cent of its GDP, one of the highest in the world. Greek government debt was estimated at Euro 216 billion in January 2010. Several people led protests against tax hikes and spending cuts announced by the government.

Few other eye-catching details about European countries

Portugal

portugal is another country in the Eurozone facing a severe crisis. According to bond markets, Portugal is the riskiest country in the Eurozone.
The country's public debt was at 77 per cent of its GDP last year and the budget deficit at a shocking 11.4 per cent of GDP.

The EU's debt crisis could spill over into banks in Portugal, Spain, Italy, Ireland and the UK, according to Moody's.

Ireland

Ireland is also deep in crisis with a government deficit of 14.3 per cent of GDP. The recession-hit economy plunged further with the collapse of the construction industry. The cumulative fall in GDP over three years has been 12 per cent in real terms.
The country fell into recession for the first time since the 1980s. Ireland was also the first nation in the Eurozone to enter recession. The number of unemployed people in Ireland rose to 326,000 in January 2009, the highest level since 1967.

Spain

Spaim with 11.2 per cent of the GDP. The interest on two year sovereign bonds has zoomed to 20 per cent, signaling the huge defaults.
Rating agencies have downgraded the debts of Spain and Portugal in addition to that of Greece. Spain's 20 per cent jobless rate is the highest in the developed world. Standard & Poor's lowered Spain's long-term sovereign credit rating to 'AA' from 'AA+'. There could be a further downgrade.

United Kingdom

The United Kingdom's budget deficit will surpass Greece's as the worst in European Union as the UK government faces higher debt levels. "The economy has been more harshly impacted due to the much greater reliance on the financial sector.
Any reduction of this excess liquidity or increase in interest rates could destabilise this fragile balance, especially given that the high leverage of households provides little cushion against such a scenario," according to the Moody's report.
A BBC reported quoting former IMF chief economist Simon Johnson saying, "The UK should be seen in the same category of countries as Greece and Spain, who are facing severe debt problems."

Iceland

Iceland's banking collapse is the largest suffered by any country. The national currency's value has dipped sharply, and the market capitalisation of the Icelandic stock exchange has dropped by more than 90 per cent.
At the end of the second quarter 2008, Iceland's external debt was Euro 50 billion, more than 80 per cent of which was held by the banking sector. Iceland is still reeling under a severe economic recession.

And last world richest City

Dubai

And the Dubai bust story proves that all that glitters is not gold. One of the richest cities in the world, Dubai sent shockwaves across the world when it asked creditors to freeze repayment of debt worth billions of dollars of two of its flagship firms - Dubai World and real estate developer Nakheel. The emirate is immersed in a debt of $80 billion by expanding in banking, real estate and transportation. In November 2009, Dubai World with $60 billion liabilities sought a six-month standstill on its debt repayment to all its lenders.

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My View - This is just few fact which is public there may be many more which still not public,
This is alert for all market players to no be much on market, because of no fundamental
we fundamental analyst always talk and suggest our client/friend to invest on the basis of fundamental however in current scenario because of following I will suggest everyone to be in market only on technical basis not on fundamental

1) Excess liquidity
2) No currency printing Policy
3) Increasing budget deficits
4) More dependence on debt to finance budget
5) Inability to serve debt
6) Inflation
7) Unemployment etc.

Hence I will suggest all of my friend who is reading this post and interested in market, boss please start learning how to and when do shorting it’s all now gambling no fundamentals

Rangoli At HDO

Hi,

Today morning while coming to office I was thinking, I want to live today at my best,
But the question is how ?

Answer was to lets write something

And then I thought what could be better then posting a new post on my blog, since I am blog lover

Hmmm…… now I have answer – to write something on my blog

Now next question is - what should I write?
Answer was to write something on HDO latest Rangoli competition
The reason for choosing this topic is, even if winners are declared but still we are waiting for prize distribution.

Kokila how long we need to keep our finger crossed. Please do something………..

Oh… I was just kidding…………....................

Actually the reason for writing this post is to boost myself, since first time I made any Rangoli and the best part is it was not that BAD………………………………. aisha mai sochta hu..........

Good dude…………. excellent………………………… this applause was for me
Below is my Rangoli picks
Not Bad na……………………………………………….

Below are rangoli of all participants

Now guess who is winner
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First Winner is Pooja Madam

Second - Manisha

Third - Joytsna

A many congratulation winners

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Tough luck my dear friend who made India map Rangoli “Freedom fighter”
According to me you deserve to be among top three but mere bolne se kya hota hai……….

Tough luck dude……….better luck next time……………...

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I want to congratulate Kokila and Bapat for accomplishing extra-ordinary thing in an ordinary way, specifically keeping all of our Rangoli intact for around a week

Excellent arrangement, good co-ordination……..

Special thanks to the evaluation process, where all of us got chance to be judged by professional judges…

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My learning from this activity….
No matter whether you have done same thing in the past or not, no matter whether you have relevant experience or not, if you have positive attitude you can do anything and everything.

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One of the most important management and corporate funda is positive attitude and learning approach

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In last I just want to explain how I did this Rangoli………
In my childhood I did some sketching work, and I have seen people doing Rangoli specifically how to make different color by mixing of two or three colors.

One thing also helped me when I saw pooja and veena doing some paper and pencil work, that tought me how to use some tools like pencil, scale, paper etc. while making rangoli.

About My rangoli design - I searched it on google

Ony on that basis I decided and participate in rangoli activity…
And I believe my rangoli was not that bad………

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Thank you ……………………………………………..

Union Budget Indirect Tax

Indirect Tax proposal
Indirect Tax Budgetary Proposal Highlights
Goods & Services Tax
Goods and Services Tax expected to be introduced on 1st April, 2011

Service Tax
Rate of tax on services retained at 10% to create foundation for GST
Service tax net widened by adding eight new services (mentioned below)
o Promotion, Marketing or Organising of Games of Chance (including lottery, Bingo, Lotto) Service
o Health Service
o Maintenance of Medical Records of Employees of a Business Entity
o Promotion of a ‘brand’ of goods, services, events, business entity, etc. service
o Permitting Commercial Use or Exploitation of Any Event Service
o Electricity Exchange Service
o Services of Transferring Temporarily or Permitting the Use or Enjoyment of any Copyright
o Special services provided by builder to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges.

Amendment in expansion in scope of eleven existing services
Ø Air Passenger Transport Service
Ø Information Technology Software Service
Ø Commercial Training or Coaching Service
Ø Sponsorship Service
Ø Construction of Complex service Commercial or industrial construction service
Ø Renting of immovable property\
Ø Airport Services Port Services Other Port Services
Ø Auctioneer’s Service
Ø Management of Investment under ULIP Service

Withdrawal of existing exemption in below taxable service
Ø Transport of Goods by Rail Service
Ø Commercial Training or Coaching Service
Ø General Insurance Service

There are few other amendment in service tax for those update pl leave comments I will update you


Central Excise
Standard rate of excise duty partially hiked from 8% to 10% on all nonpetroleum products

Customs
Peak Customs Duty rate maintained at 10%

Union Budget Direct Tax 80 IB

Deduction in respect of profits and gains from undertakings engaged in developing and building housing projects

According to the existing provisions of section 80-IB(10), 100 % deduction is available in respect of profits derived by an undertaking from developing and building housing projects approved by a local authority before 31st March, 2008. This benefit is available if the following conditions are fulfilled:

The project has to be completed within 4 years from the end of the financial year in which the project is approved by the local authority.

The built-up area of the shops and other commercial establishments included in the housing project should not exceed 5% of the total builtup area of the housing project or 2,000 sq. ft. whichever is less.

I n order to get the tax benefit of the above provisions during the slowdown in the housing sector due to global recession, it is proposed to increase the period allowed for completion of a housing project from existing 4 years to 5 years from the end of the financial year in which the housing project is approved by the local authority and a further relaxation is proposed to be given in the current norms for built-up area of shops and other commercial establishments in housing projects at 3 percent of the aggregate built-up area of the housing project or 5,000 sq. ft. whichever is higher for projects approved on or after 1st April, 2005 which are pending for completion.

Union Budget 2010-11 Direct Tax

Direct Tax proposal

Corporate Tax
Corporate income-tax rates remain unchanged for both domestic as well as foreign companies, except for an increase in the effective rate of Minimum Alternative Tax (MAT) from 15% to 18%.

The applicable rates of income-tax are as under:

Particulars Tax Tax Rate (%) *

Domestic Company
Normal Tax Rate 30%
Minimum Alternative Tax 18%

Foreign Company
Normal Tax Rate 40%

Currently the surcharge on income tax @10% is payable by a domestic company having total income exceeding one crore rupees. It is proposed to reduce the surcharge on income-tax from 10% to 7.5%.

I n case of companies, other than domestic companies, having total income exceeding one crore rupees, the surcharge on income-tax will continue to be levied @ 2.5%.

The marginal relief in tax will continue to be allowed in the cases where income is more than one crore rupees.

The Education Cess shall continue to be levied @ 3%.

Personal Tax
Tax Rate
At present, the income upto Rs.1,60,000/- is exempt in respect of individuals (other than women below the age of sixty-five years and senior citizens), Hindu Undivided Families (HUF), Association of Persons (AOP), Body of Individuals (BOI) etc. In respect of women below the age of sixty-five years and senior citizens resident in India, the income upto Rs. 1,90,000/- and upto Rs. 2,40,000/- respectively is exempt.

I t is proposed to increase the limit of income under each slab keeping the threshold limit of exemption at the same level. The proposed changes have been tabulated below

Existing Limit Proposed Limit Tax Rate
Upto 1,60,000 Upto 1,60,000 Nil
Upto 1.6 to 3 Lakh Upto 1.6 to5 Lakh 10%
Upto 3 to 5 Lakh Upto 5 to 8 lakh 20%
5 Lakh & Above 8Lakh & above 30%

No surcharge will be levied in case of individuals, HUF, AOP & BOI, co-operative society, local authority and firms

The education cess shall continue to be levied at the rate of 3%.

This budget have also offer some other benefits/relaxation as explain below

I n order to promote the investment in infrastructure sector, it is proposed to allow deduction in respect of subscription made by an individual or a Hindu undivided family in long-term infrastructure bonds (as may be notified by the Central Government) during financial year 2010-11, to the extent of Rs. 20,000/-, in computing the total income in addition to normal 100000 investment as explain under section 80C.

Total medical health insurance premium limit have increase from 15000 to 20000 in case of senior citizen under section 80D

Enhancement of threshold limit for applicability of tax audits for business or profession

Section 44AB of the Act deals with audits of accounts of every person carrying on business or profession, if his total sales or turnover exceeds Rs. 40 lakhs in the previous year or gross receipts in profession exceeds Rs. 10 lakhs

Such threshold limits for the applicability of tax audits have been enhanced to Rs. 60 lakhs and Rs. 15 lakhs respectively. This would help reduce the compliance burden on the small taxpayers.

While the threshold limits have been increased, it is proposed to also increase the maximum penalty leviable, from Rs. 1 lakh to Rs. 1.5 lakhs in case of failure to get books of account audited u/s 44AB or to furnish a report on such audit.

Union Budget 2010-11 Revenue & Expenditure

Below are source of revenue for UPA Gov for FY 2010-11

Ø Dis-investment in PSUs to yield more than Rs. 25,000 Crores
Ø Increase in MAT from 15% to 18%
Ø Increase in Excise Duty from 8% to 10%
Ø Inclusion of new services in the Service tax net
Ø Increase in Excise by Rs.1 per liter and custom duty from 2.5% to 7.5% for petrol and diesel. Restoration of basic custom duty of 5% on crude petroleum

Below are Expenditure plan

Ø The plan and non-plan expenditure for 2010-11 are estimated at Rs. 3,73,092 crore and Rs. 7,35,657 Crores respectively.
Ø Out of the plan expenditure allocation to infrastructure at Rs. 1,73,552 crore at 46% followed by Rs. 1,37,674 crore at 37% are the highest
Ø Energy and MSME sectors are allocated Rs. 5,130 crores and Rs. 2,400 crores


The Finance Minister aims at withdrawing stimulus eventually and focuses on inclusive and sustainable growth through infrastructure development, rural and agricultural development and promotion of exports through Special Economic Zones. He has laid emphasis on governance, I. T. enabled functions and efficiency measures which will put India among the most attractive countries of the world

In my opinion that Government has treaded towards fiscal consolidation. The reduction in personal tax rates will increase the disposable income which will further propel the consumption in the economy. In addition to this, Government spending plans will also increase the flow of capital formation.

Union Budget 2010-11 Objective

Soon after the newly elected UPA government took charge, the regular budget of February, 2010 was eagerly awaited. The Finance Minister has in his masterly style presented a well balanced growth oriented Budget in the Parliament on 26th February, 2010 to achieve the following objectives:

Ø To quickly revert to the higher GDP growth of 9% and ultimately, cross the double digit as against the estimated growth rate of 7.2% for financial year 2009-10.

Ø To harness economic growth to make development more inclusive and sustainable.
Ø To address the weaknesses in the Government system.
Ø Improving investment environment by taking special initiative to simplify Foreign Direct Investment.
Ø Taking special initiative to address the entire value chain in the agriculture sector by introducing Green Revolution, conversation of farming, storage and food processing.
Ø Substantial allocation to infrastructure and social sector
Ø Emphasis on clean energy and renewable energy
Ø Target of explicit reduction in the domestic public debt-GDP ratio
Ø Aim to introduce Goods and services Tax (GST) and Direct Tax Code (DTC) regime with effect from 1st April, 2011\

To achieve these objectives, the Finance Bill provides for the revenue mop up measures and expenditure plans: for more please refer Union Budget 2010-11 Revenue Plan

Mumbai world's 7th most costly city

As India witnesses a rise in property prices, its financial capital Mumbai has been ranked as one of the world's top 10 expensive locations in terms of accommodation cost.

Mumbai, which is ranked seventh, is followed by Shanghai, on whose lines the government is planning to develop the Indian financial hub.

The list comprises of Hong Kong, Tokyo, New York, Moscow, Seoul, London, Mumbai, Shanghai, Caracas (Venezuela) and Paris, according to a study by International Human Resource organisation ECA International.

"High rentals in Tokyo, New York, Seoul, Moscow, London and Paris largely reflect high living costs in these locations, while Mumbai, Shanghai and Beijing suffer from a shortage of modern and well-equipped properties, pushing prices up for those properties that do," ECA International Hong Kong General Manager Lee Quane said.

Though five of the top 10 expensive locations are in Asia, the list of world's cheapest locations to rent a three-bedroom apartment does not include any Asian city.

Convert Number Into Text In Excel

For whatever reason, Microsoft Excel does not come with a built-in function that will convert numeric values into English words. The ability to make such a conversion is necessary for the successful operation of several potential Excel applications.

Want to convert denomination into text form. This is required generally in cheque writing. We write amount in figures i.e. Rs.123/- and then write this amount in words i.e. Rupees one hundred and twenty three only. How to do this in Excel or in Word by key operations?

Open a new excel file and press Alt + F11 to open Visual Basic Editor and from the top menu bar select Insert->Module, it will add a new module. Now copy the below VBScript and paste it into the module.

'-------------------------- VBScript Starts --------------------------

Option Explicit

' Function for conversion of a Currency to words
' Parameter - accept a Currency
' Returns the number in words format
'*************************************…

Function CurrencyToWord(ByVal MyNumber)
Dim Temp
Dim Rupees, Paisa As String
Dim DecimalPlace, iCount
Dim Hundreds, Words As String
ReDim Place(9) As String
Place(0) = " Thousand "
Place(2) = " Lakh "
Place(4) = " Crore "
Place(6) = " Arab "
Place(8) = " Kharab "
On Error Resume Next
' Convert MyNumber to a string, trimming extra spaces.
MyNumber = Trim(Str(MyNumber))

' Find decimal place.
DecimalPlace = InStr(MyNumber, ".")

' If we find decimal place...
If DecimalPlace > 0 Then
' Convert Paisa
Temp = Left(Mid(MyNumber, DecimalPlace + 1) & "00", 2)
Paisa = " and " & ConvertTens(Temp) & " Paisa"

' Strip off paisa from remainder to convert.
MyNumber = Trim(Left(MyNumber, DecimalPlace - 1))
End If

' Convert last 3 digits of MyNumber to ruppees in word.
Hundreds = ConvertHundreds(Right(MyNumber, 3))
' Strip off last three digits
MyNumber = Left(MyNumber, Len(MyNumber) - 3)

iCount = 0
Do While MyNumber <> ""
'Strip last two digits
Temp = Right(MyNumber, 2)
If Len(MyNumber) = 1 Then
Words = ConvertDigit(Temp) & Place(iCount) & Words
MyNumber = Left(MyNumber, Len(MyNumber) - 1)

Else
Words = ConvertTens(Temp) & Place(iCount) & Words
MyNumber = Left(MyNumber, Len(MyNumber) - 2)
End If
iCount = iCount + 2
Loop

CurrencyToWord = "Ruppees " & Words & Hundreds & Paisa & " Only."
End Function

' Conversion for hundreds
'*************************************…
Private Function ConvertHundreds(ByVal MyNumber)
Dim Result As String

' Exit if there is nothing to convert.
If Val(MyNumber) = 0 Then Exit Function

' Append leading zeros to number.
MyNumber = Right("000" & MyNumber, 3)

' Do we have a hundreds place digit to convert?
If Left(MyNumber, 1) <> "0" Then
Result = ConvertDigit(Left(MyNumber, 1)) & " Hundreds "
End If

' Do we have a tens place digit to convert?
If Mid(MyNumber, 2, 1) <> "0" Then
Result = Result & ConvertTens(Mid(MyNumber, 2))
Else
' If not, then convert the ones place digit.
Result = Result & ConvertDigit(Mid(MyNumber, 3))
End If

ConvertHundreds = Trim(Result)
End Function

' Conversion for tens
'*************************************…
Private Function ConvertTens(ByVal MyTens)
Dim Result As String

' Is value between 10 and 19?
If Val(Left(MyTens, 1)) = 1 Then
Select Case Val(MyTens)
Case 10: Result = "Ten"
Case 11: Result = "Eleven"
Case 12: Result = "Twelve"
Case 13: Result = "Thirteen"
Case 14: Result = "Fourteen"
Case 15: Result = "Fifteen"
Case 16: Result = "Sixteen"
Case 17: Result = "Seventeen"
Case 18: Result = "Eighteen"
Case 19: Result = "Nineteen"
Case Else
End Select
Else
' .. otherwise it's between 20 and 99.
Select Case Val(Left(MyTens, 1))
Case 2: Result = "Twenty "
Case 3: Result = "Thirty "
Case 4: Result = "Forty "
Case 5: Result = "Fifty "
Case 6: Result = "Sixty "
Case 7: Result = "Seventy "
Case 8: Result = "Eighty "
Case 9: Result = "Ninety "
Case Else
End Select

' Convert ones place digit.
Result = Result & ConvertDigit(Right(MyTens, 1))
End If

ConvertTens = Result
End Function

Private Function ConvertDigit(ByVal MyDigit)
Select Case Val(MyDigit)
Case 1: ConvertDigit = "One"
Case 2: ConvertDigit = "Two"
Case 3: ConvertDigit = "Three"
Case 4: ConvertDigit = "Four"
Case 5: ConvertDigit = "Five"
Case 6: ConvertDigit = "Six"
Case 7: ConvertDigit = "Seven"
Case 8: ConvertDigit = "Eight"
Case 9: ConvertDigit = "Nine"
Case Else: ConvertDigit = ""
End Select
End Function

-------------------------- VBScript Ends --------------------------

now save the excel file and close the Visual Basic editor and come to the spreadsheet mode, now its time to test the script...
In any cell of the spreadsheet now you can use the below function to convert digits to number...
=CurrencyToWord(123)
Result = Rupees one hundred and twenty three only
you can give a cell reference at the place of 123 like:
=CurrencyToWord(A2)
so it will convert whatever digit is written in the cell A2.


I hope this solution will satisfy your needs....

Structure Trade review

Structure Trade review – STR can be explained as a contract review process of structure & plain vanilla derivative trade contract.
In derivative contract trader enter into contract with interested party as intermediate and accept risk of change in market condition in order to hedge interested party exposer from change in interest rate or fluctuation in domestic or foreign currency, i.e. fixed income swap, interest rate swap, currency swap, credit default swap.

In order to further simplify, assume
Citi Bank enter into contract of interest rate swap with RIL and assuring that RIL have to pay only LIBOR + .07 for loan of notional amount of $1 Billion instead of MIBOR + 10% what RIL is getting from bank.
In order to executive and eliminate probability of miscommunication/misunderstanding, like in any other contract between two party there is a contract agreement, similarly in derivative contract there is a contractual agreement about
Terms of contracts
Basis of Payout calculation
Period of contract
Start date
Execution/due date
Individual party terms & condition in contract
And any other relevant terms
Finally like any other contract both party of derivative contract sign this contract and agreed with contract terms and condition.

Now STR
As the name suggest Structure Trade review of Derivative contract, member of STR team mainly see
Whether Economics of Trade have properly booked across the system (MO, BO, FO) or not, if not then communicating this to defaulting department rectify the same, if mistake not get corrected with the accepted time escalate issue to senior management/product controller.

STR have important role in derivative transaction since final payout is in millions or billions, if wrong doing is not identified within time company may lose billions of money.

Objective of STR team: to see all terms have accurately booked across the system so that payout flows according to agreed terms & condition.

Normally below are few most common steps in structure trade review
Step 1 – Payout understanding like A to B LIBOR + .05% + 12% - LIBOR + .15% = 12.1%.

Payout understanding is one of the most complicated tasks in any Structure Trade Review which consume more than 30% of total time of entire structure trade review process.
You should spend at least 30% to 50% of total time of STR, since this the area where we can save billions of our employer money & learn new thing about derivative market.

Step 2 – throughout study and understand rest of derivative contract which may impact on payout calculation.

Step 3 – we must have habit of in house discussion about each and every contract within the team which will help all team members to have better understanding/idea about what is happening outside.

Step 4 – Statically tick back across the MO and BO in order to insure entry in MO & BO is as per the terms.

Step 5 – Payout calculation at FO, this again one of the most important areas of entire structure trade review which takes almost 20% of total work since any mistake in this will direct reflect in final payout. This also common area of fraud for interested party since FO verification process is very complicated and any one can easily create smart money just by doing some smart manipulation in this area, hence as a STR team member it is our responsibility to have excellent understanding of FO verification process.

One of the most common tool that we use while calculating and verifying FO is “PC Tool”
We just need to enter all the economics terms in the PC tool and PC tool will automatically generate PL result that result must match with PL balance of Front office (FO), if not need escalation.

Step 6 – Write up and flow chart, during this process we need to capture payout by way of flow chart and all other measure observation in addition to routine work.

Step 7 – Follow up with BO, MO, FO, to rectify the mistakes within the reasonable time.

Step 8 - Escalation with PC if problem doesn't solve within reasonable time, ideally it is 15 Days.

Some of the important terms used in Derivative contracts.
Business Days – 5 Days in a week
Calendar Days - seven days in a week
Following days – if due date is on non working days payment will happen on next working days
Preceding days – if due date is on non working days payment will happen in immediately preceding working days
Modify & Modify following – if due date is on non working days and next working days is in next month then payment will happen on next following working days.Modify preceding – if due date is on non working days and next working days is on next month payment will happen in immediate preceding working days

If number of days in a year not specified in contract then as per ISDA (International Swap & Derivative Association) we will take 360 in a year

Few other days’ calculation terms
Actual/Actual means actual contract days/actual days in a year
Actual/360
Actual/365

Interest rate Swap

An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. Unlike the bond interest rate swap does not includes principal amount

Interest rate swap can be of following type
Fixed-for-floating rate swap, same currency
For example, you pay fixed 5.32% monthly to receive USD 1M LIBOR monthly on a notional USD 1 million for 3 years.

Fixed-for-floating swaps in same currency are used to convert a fixed rate asset/liability to a floating rate asset/liability or vice versa. For example, if a company has a fixed rate USD 10 million loan at 5.3% paid monthly and a floating rate investment of USD 10 million that returns USD 1M Libor +25 bps monthly, it may enter into a fixed-for-floating swap. In this swap, the company would pay a floating rate of USD 1M Libor+25 bps and receive a 5.5% fixed rate, locking in 20bps profit.

Fixed-for-floating rate swap, different currencies

For example, you pay fixed 5.32% on the USD notional 10 million quarterly to receive JPY 3M (TIBOR) monthly on a JPY notional 1.2 billion (at an initial exchange rate of USD/JPY 120) for 3 years

Fixed-for-floating swaps in different currencies are used to convert a fixed rate asset/liability in one currency to a floating rate asset/liability in a different currency, or vice versa. For example, if a company has a fixed rate USD 10 million loan at 5.3% paid monthly and a floating rate investment of JPY 1.2 billion that returns JPY 1M Libor +50 bps monthly, and wants to lock in the profit in USD as they expect the JPY 1M Libor to go down or USDJPY to go up (JPY depreciate against USD), then they may enter into a Fixed-Floating swap in different currency where the company pays floating JPY 1M Libor+50 bps and receives 5.6% fixed rate, locking in 30bps profit against the interest rate and the fx exposure.

Floating-for-floating rate swap, same currency

For example, you pay JPY 1M LIBOR monthly to receive JPY 1M TIBOR monthly on a notional JPY 1 billion for 3 years.

Floating-for-floating rate swaps are used to hedge against or speculate on the spread between the two indexes widening or narrowing. For example, if a company has a floating rate loan at JPY 1M LIBOR and the company has an investment that returns JPY 1M TIBOR + 30 bps and currently the JPY 1M TIBOR = JPY 1M LIBOR + 10bps. At the moment, this company has a net profit of 40 bps. If the company thinks JPY 1M TIBOR is going to come down (relative to the LIBOR) or JPY 1M LIBOR is going to increase in the future (relative to the TIBOR) and wants to insulate from this risk, they can enter into a float-float swap in same currency where they pay, say, JPY TIBOR + 30 bps and receive JPY LIBOR + 35 bps. With this, they have effectively locked in a 35 bps profit instead of running with a current 40 bps gain and index risk. The 5 bps difference (w.r.t. the current rate difference) comes from the swap cost which includes the market expectations of the future rate difference between these two indices and the bid/offer spread which is the swap commission for the swap dealer.

Floating-for-floating rate swap, different currencies
For example, you pay floating USD 1M LIBOR on the USD notional 10 million quarterly to receive JPY 3M TIBOR monthly on a JPY notional 1.2 billion (at an initial exchange rate of USDJPY 120) for 4 years

To explain the use of this type of swap, consider a US company operating in Japan. To fund their Japanese growth, they need JPY 10 billion. The easiest option for the company is to issue debt in Japan. As the company might be new in the Japanese market without a well known reputation among the Japanese investors, this can be an expensive option. Added on top of this, the company might not have appropriate debt issuance program in Japan and they might lack sophisticated treasury operation in Japan. To overcome the above problems, it can issue USD debt and convert to JPY in the FX market. Although this option solves the first problem, it introduces two new risks to the company:

FX risk. If this USDJPY spot goes up at the maturity of the debt, then when the company converts the JPY to USD to pay back its matured debt, it receives less USD and suffers a loss.

USD and JPY interest rate risk. If the JPY rates come down, the return on the investment in Japan might go down and this introduces an interest rate risk component.

The first exposure in the above can be hedged using long dated FX forward contract but this introduces a new risk where the implied rate from the FX spot and the FX forward is a fixed rate but the JPY investment returns a floating rate. Although there are several alternatives to hedge both the exposures effectively without introducing new risks, the easiest and the most cost effective alternative would be to use a floating-for-floating swap in different currencies. In this, the company raises USD by issuing USD Debt and swaps it to JPY. It receives USD floating rate (so matching the interest payments on the USD Debt) and pays JPY floating rate matching the returns on the JPY investment.

Fixed-for-fixed rate swap, different currencies.
For example, you pay JPY 1.6% on a JPY notional of 1.2 billion and receive USD 5.36% on the USD equivalent notional of 10 million at an initial exchange rate of USDJPY 120.

Treasury stock

A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings).
Stock repurchases are often used as a tax-efficient method to put cash into shareholders' hands, rather than pay dividends. Sometimes, companies do this when they feel that their stock is undervalued on the open market. Other times, companies do this to provide a "bonus" to incentive compensation plans for employees. Rather than receive cash, recipients receive an asset that might appreciate in value faster than cash saved in a bank account. Another motive for stock repurchase is to protect the company against a takeover threat.

Accounting Treatment of Treasury Stock

Either keeps it as a investment by reducing cash and increasing Total Investment, in other worlds shifting cash from bank to company share
Or
By reducing company total issued capital and reserve if buy back is at premium

Leader Quality

Is a positive attitude and zeal to learn. A positive attitude create a conductive and result oriented work environment specifically when people has thrust to learn more, he will not let down by failure and reach new high.

What I will never suggest to any young growing professional is acceptance of defeat due to failure. I believe that nothing is impossible unless you try and even if you don’t succeed in first go, there is long way to go rather than giving up.

The only way to renew your passion

On daily basis define new challenges & Goal, by seating new benchmark everyday would also motivate you to do your best.

Team management Principal

Free flow of communication and maintaining full transparency across department is vital for a successful team management. Listening is also one key aspect of success full team. It helps to maintain positive sprit across the team. Measuring team performance and setting clear picture and goal is also one of critical skill of a team leader.

Leadership quality

One of the most important skill of a successful leader is clear vision for the future in order to meet/achieve organization goal.
Set plan to achieve then as people done follow other people but they follow VISION.
Just imagine any great leader you will see a truly great visionary like Dhirubhai Ambani, Mahendar Singh Dhoni.