Newsletter

1. A FINANCIAL NEWSLETTER FROM CUIM KENGERI
DATE: 5th AUGUST 2011 ISSUE:16

2. INDEX
ECONOMIC ROLLERS............................................................................... 2
RBI COLUMN........................................................................................... 3
MERGERS AND ACQUISITIONS ................................................................ 5
CONTEMPLATORS ................................................................................... 7
US DEBT CRISIS-IN AND OUT ................................................................ 7
RBI MONETARY POLICY- A LOPSIDED APPROACH .............................. 10
OWNING A HOUSE! DREAM OR REALITY? ......................................... 11
NISHKA EQUITY RESEARCH ................................................................... 13
FINANCE BUZZ ...................................................................................... 15
PHOTO FIND ......................................................................................... 16
FINANCE QUIZZ..................................................................................... 17
CROSS WORD ....................................................................................... 18
CAMPUS POLL ...................................................................................... 19
VERIFY YOURSELF ................................................................................. 21

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 is
as 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 billion
as an armed
IIP (for May 2011) - +5.6%
robber and
as 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. RBI COLUMN
CHALLENGES FOR NEXT GENERATION BANKING BY K C CHAKRABARTY
Indian Chamber of Commerce and Industry (ICCI), Coimbatore conducted ‘Voice of
Tomorrow- Fuel to Excel’ along with The Hindu in Coimbatore. The voice of tomorrow
belongs to the youth and the millions of business entrepreneurs of the country. The private
business community will increasingly shape the face of the economy and also become a
prominent voice in setting our vision for the future in a market based economy. With likely
8% of growth in eleventh 5 year plan, Indian economy is aiming for 10% growth rate in 12 th
5 year plan with underlying factors such as private enterprise & investments coupled with
demographic advantage and sustain it. With this Indian contribution to the world GDP will
raise 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 working
population 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 productive
employment opportunities will determine how best we are able to reap the demographic
dividend.
The challenge in creating gainful employment for this order of new entrants is the
quality 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 to
presume 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 80
per cent in the age group of 15-29, which is as high as 96 per cent for Korea. The comparable
level for India is less than 15 per cent. Expenditure on research and development (R&D) in
the developed countries is in the range of 2 to 3 per cent of GDP on an average, which is just
0.8 per cent in India. This probably explains the gap between employment and employability
in our country.
3

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. MERGERS AND ACQUISITONS
EagleBank 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 $536
million in assets, $412 million in deposits and six branches in Northern
Virginia.
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 or
credits 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 that
the deal is the company’s second in
Denver in about two months. Diamon-
dRock paid $72.6 million for the JW
Marriott Denver Cherry Creek.
5

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. There
are reports that since Jet Airways and JetLitehave separate operating permits, transfer of
plans 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 the
business and assets of Ingenium Testing, a leading product
compliance and engineering services provider based in Rock-
ford, IL. NTS acquired the business and assets of Ingenium and two affiliated companies
for 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 in
cash and 0.81 shares for each Medco share they own upon closing of the transaction. The
agreement 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 the
quality of care for Americans.
BY
SHUBHAJIT GHOSHAL
II MBA A
6

8. CONTEMPLATORS
US DEBT CRISIS – In and Out
The very week when we were busy with our mid-term examinations, world economy was
struggling 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 debt
cannot 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 are
also not helping the cause. The factors which gave birth to this crisis are numerous but there
are 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.com
This huge amount led government to go for borrowings. These are the years when US was
fighting wars in Afghanistan and Iraq.
The next important question is who is the major owner of these US sovereign debt instru-
ments?
7

9. *Source http:www.treasury.gov
This pie chart shows the owners of US debt. If US default then whole world economy will go for
a toss. The owners of US debt instruments will be directly affected and it will trigger a chain of
events 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 then
barred 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 doesn't Obama just raise the ceiling?
Because the leader of the world's largest economy does not have the authority. Any changes to
the debt ceiling need to be approved by Congress, and this has led to a protracted stalemate
between Republicans and Democrats.
Why can't 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 cuts
and tax rises – including higher income taxes. The Republican Party supports a $2.4tn package
of spending cuts, but is not backing the tax raise. The upcoming elections of 2012 are playing a
crucial 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 liquidating
some of the scheme's assets. Treasury secretary Tim Geithner has pledged that the shortfall
will 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. It's
not been entirely one-way traffic, though, since Congress did vote to lower the limit twice in the
1950s, during America's postwar economic boom.
8

10. What impact would a default have?
Some experts have predicted a major panic. Standard & Poor's has made it
clear 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 debt
as collateral with central banks (although these rules could be changed).
As Gary Jenkins of Evolution Securities has rightly put it as "They wouldn't
dare, would they?" Even Bernanke has conceded that failure to lift the US
debt 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. The
ballooning 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 the
the government has is to cut down spending, which is unlikely to happen, greatest
according to Faber. The governments will either print money at enormous
disservices
levels. 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 a
U.S. has bleak chance of resolve its worsening financial position. The man- man is to
ufacturing industry continues to contract, which leaves the nation with lend him
very little goods to export. The persistent current account deficits by money that
the U.S. were creating an unsustainable boom in global credit that was
he can’t pay
destined to break down and result in a worldwide recession. So the only
sustainable 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 Jones
because we live in the highly netted world economy where everyone is
connected to each other, so does our placements too. So let’s hope and
pray that we don’t witness another recession.
BY
MADHUKAR
&
PRATIMA TIWARI
II MBA C
9

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 is
doing in case of controlling inflation. RBI has increased key policy rate 11th time since March 2010
with repo rate standing at 8%. Many economists called it “madness, some called it as lack of basic
knowledge 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 the
economy you don’t need to take off excess liquidity already existing, but you can reduce pumping
into economy. Then excess liquidity will be automatically readjusted. That’s what exactly the RBI is
doing 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 will
take care of its own. What needs to be checked is increasing prices. When higher inflation is
matched with higher salaries, small doses of rate increase fail to pull down demand. As people
learn to live with high prices almost unknowingly they prepare them-
selves for higher inflation in future and then one day inflation spins out
of control. Here RBI strategy is to maintain around 8% growth rate for
some time with these key rates and there by controlling the inflation in
near future.
But how far this strategy works out until and unless central government
cannot remove supply side bottle necks, remains a big question. When
the 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. 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 a
whole. But the division of the sectors should be in such a way that they have less
correlation to other. To implement these strategies RBI and Central Government
should go hand in hand and help each other to stabilize the economy as a whole. For
example whenever food inflation is more, central government may import food
items for the short term demands and RBI should reduce rates on agriculture sector
thereby 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 and
RBI 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 for
shelter 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 real
estate sector hoping that this time announcements will be favourable. But like the previous 10
times, 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 burden
on the shoulders of existing as well as prospective buyers. Developers are also facing the heat of it
with increase in expenses. The cherry on the cake is RBI’s strict and tedious guidelines to banks
before granting loans to real estate developers and buyers.
11

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 fall
wealth.. 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 cash
affluence 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. NISHKA EQUITY RESEARCH
Orient Paper and Industries
Orient Paper and Industries, Q1FY12 revenues grew 21% yoy to Rs5.33bn
led 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/t
even 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. Overall
EBIDTA 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 stood
at Rs1133, +51% yoy. With 8% decline in interest charge, OPIL’s PAT at
Rs584 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 OCL
for each share held in OPIL. Stock trades at 6.6x FY12 P/ER & EV/EBIDTA of
4X. OPIL’s cement business as the de-merger will ensure that the cement cash
flows will be dedicatedly used for funding the growth of the business rather
than supporting the losses of the paper division.
CMP: 60
Target Price: 66
Stop Loss: 53
13

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: 92
LALIT GOEL Target Price: 101
II MBA A Stop Loss: 77
14

16. FINANCE BUZZ
1. Peace Dividend:
A political slogan popularized by US President George H.W. Bush and UK Prime Minister Margaret
Thatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defence
spending. It refers to the money that becomes available in a national government's budget when the
country is at peace.
2. Lease Extension:
A legal agreement that extends the term of a rental agreement. The lease extension document should
name the parties to the agreement, provide the dates on which the extension begins and ends, and
reference the earlier agreement that is being extended. Lease payments do not have to remain the
same 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 asset
or 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 Hedge
An 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 less
rapidly than the value of the currency.One example is stock of companies that operate in the natural
resources industries.
5. Seasoning
The length of time a debt security has been publicly traded. Seasoning determines if a premium
should be made for the security in the secondary market. The debt security can be "unseasoned" if
has been traded for less than a year, or "seasoned" if it has been traded for over a year with a good
payment track record.
6. Stock basher:
An individual that seeks to artificially reduce the value of a company's 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. PHOTO FIND
The given below are the celebrities in the corporate world. Find out
who they are
1) _______________________ 2) _____________________
3)_______________________ 4) _____________________
5) _____________________
16

18. FINANCE QUIZ
1) 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 a
7) Who won the prestigious P.C.Mahalanobis Award (Medal) for 2010? friend, decide
which you
8) 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. CROSS WORD
Across
1. a company known as mini L&T
2. name the building in which BSE is located
3. FICO score provider
5. a dividend carrying an attached franking or tax credit
7. the process of calculating the present value of a future amount
Down
1. implies that a business is managed to maximise the difference between revenues and expenses in
any period
4. interest rate tsars in US
6. a discrete number which identifies each business registered with the ATO so that the regulation of
taxation is facilitated
8. highest paying dividend company in India
9. a legal structure where property is nominally owned by one party on behalf of other parties
BY
SKANDAN YN
II MBA A
18

20. NISHKA CAMPUS POLL
Q1)
As per the survey:-
Out of 109 respondents, 46 (42%) believe that RBI should stop increasing the interest
rates, Whereas 23(21%) are of the opinion that there is a necessity to continue the
hike.
Best Answer:
It’s high time to take a pause on this act. Economists and bankers fear a hit on the
investments and profitability of companies due to continuous hike in rates. A well
calculated forecast on the change in prices of oil and food in monsoon in connection
with the global changes in price of commodities is required to control the rate hikes
and curb the inflationary related problems.
19

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 strong
enough to face the challenge.
Best Response:
Indian economy is becoming stronger day by day. We have invested very less
amount in U.S markets when compared to China or Japan. So, even if there is case
of debt default by U.S, India has enough liquidity to manage it.
BY
PRAVEEN KUMAR CH
II MBA D
20

22. VERIFY YOURSELF
Photo 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. CROSS WORD:
Across
1. PUNJLLOYD—a company known as mini L&T
2. PJTOWERS—name the building in which BSE is located
3. FAIRISAAC—FICO score provider
5. FRANKEDDIVIDEND—a dividend carrying an attached franking or tax credit
7. DISCOUNTING—the process of calculating the present value of a future amount
Down
1. PROFITMAXIMISATION—implies that a business is managed to maximise the difference
between revenues and expenses in any period
4. FED—interest rate tsars in US
6. ABN—a discrete number which identifies each business registered with the ATO so that
the regulation of taxation is facilitated
8. ONGC—highest paying dividend company in India
9. 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 man's
pocket without
resorting to
violence”
-Max
Amsterdam
22

24. ABOUT “NISHKA”
NISHKA is a monthly finance magazine brought by the students of the finance club
of CHRIST UNIVERSITY Institute of Management Kengeri Campus. The Idea behind
coining the issue of this magazine is to establish a learning among the students
which 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
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