FinXpress

Company in Focus:

RBI

3

StartUp in focus:

Sacona Entertainment

4

Markets this Week 5

News of the Week 6

CAN YOU SOLVE IT? 8

NOVEMBER 06, 2011

Sources of Data:

HDFCsecurities

Economic Times

The Hindu

Rediff Money

MoneyControl.com

Financial Express

Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

RISCON: ANNUAL RISK MANAGEMENT CONCLAVE

WILL GREECE TAKE OTHERS DOWN TOO!!

FinNiche, the finance club of IMT-Ghaziabad, one of the premier B-schools in India, is organizing its flagship event

National Risk Management Conclave, Riscon ’11 on 12th-13th November, 2011. Riscon is an initiative with a purpose

to identify and obtain possible solutions to risks deeply associated with various aspects of the financial/business

world. The journey for Riscon started one years ago. After capturing and influencing the minds of people, Riscon this

year has evolved from the general recession mindset that had engulfed the market and focuses on the risks that are

involved in many of the contemporary issues such as the 'Euro zone debt crisis', 'Efficacy of RBI's monetary policy to

tackle inflation' and ‘Impact of the devaluation of Indian Rupee on the markets’.

Earlier, Riscon’10, organized by FinNiche was a

resounding success. The conclave set its own benchmark

with the amount of popularity it garnered, the stature of

the speakers who made their presence felt, the

contemporary issues that it brought into focus & the

enormous amount of footfall it received from other

reputed B-schools.

The conclave, this year, is an attempt to provide a

platform for sharing, addressing the various concerns in

economic and financial domain and analyzing more

innovative and effective ways for assessing the associated

risks. It aims to achieve it through a series of knowledge

sharing sessions and panel discussions by industry experts. The two day conclave will have three technical sessions, a

panel discussion based on “Impact of the Euro Debt Crisis on global economy” and Shreyas Nidhi, an Inter B-School

event based on Mutual Funds.

The eminent speakers who will be addressing the students during the event are:

Mr. Ajay Sahai, CEO & Director, Federation of Indian Export Organisation

Mr. Rajeshwar Rao, Chief General Manager, Reserve Bank India

Mr. J. K. Mallik, Director, Department of Economic and Policy Research, Reserve Bank India

The panel discussion to be held is based on the “Impact of the Euro Debt Crisis on Global Economy”.

Some of the dignitaries who’ll grace the discussion are:

Mr. Sunil Nair, Deputy General Manager, Reserve Bank of India

Mr.C.M.Khurana, Genral Manager, oriental Bank of Commerce

Mr. P.T.Giridharan, Director, ICAI

Mr. Vishesh Srivastava, Assistant General Manager, Punjab National Bank

Mr. Jagannathan Thunuguntla, Equity Head, SMC

Page 2 FinXpress

RISCON’11– ANNUAL RISK MANAGEMENT CONCLAVE

The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as

well as US$300.21 billion of currency reserves. It was established on April 1, 1935 in accordance with the provisions

of the Reserve Bank of India Act, 1934.The Central Office of the Reserve Bank was initially established in Calcutta but

was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are

formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the

Government of India.

The central bank till now was governed by 21 governors. The 22nd, Current Governor of Reserve Bank of India is Dr.

D. Subbarao.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." FUNCTIONS FINANCIAL SUPERVISION The Reserve Bank of India performs this function under the guidance of the Board for Financial Supervision (BFS). Some of the initiatives taken by BFS include:

restructuring of the system of bank inspections

introduction of off-site surveillance,

strengthening of the role of statutory auditors and

strengthening of the internal defenses of supervised institutions. ISSUER OF NOTES Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government MONETORY AUTHORITY The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. It formulates, implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors. MANAGER OF EXCHANGE CONTROL The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. MINIMUM RESERVE SYSTEM - PRINCIPAL OF CURRENCY NOTE ISSUE RBI can issue currency notes as much as the country requires, provided it has to make a security deposit of Rs. 200 crores, out of which Rs. 115 crores must be in gold and Rs. 85 crores must be FOREX Reserves. This principle of currency notes issue is known as the 'Minimum Reserve System'. RELATED FUNCTIONS Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks.

Page 3 FinXpress

Company in Focus : RESERVE BANK OF INDIA

Sacona Entertainment Who they are? Sacona Entertainment is a firm striving towards excellence in customer service through its innovative products and services. Sacona’s mission is to create a highest quality audio & video concept, designed around privacy, comfort, technology, and choice of content. Started in the year 2007, Sacona Entertainment is a two year old firm and is advancing steadily towards being a befitting service provider in the arena of entertainment. What do they do? Over the years, several entertainment units have aspired to cater to the diverse entertainment related needs of a user like audio playing, movie playing, television, video conferencing, gaming, and internet browsing. These devices have become more sophisticated over time with the advent of new technologies but still most of them are specialized only to cater to needs of a user. A user has to, typically, access to a number of different devices to satisfy all of his entertainment related needs. The existing systems do not provide a one stop solution to all entertainment needs of a user. Also another issue of privacy arises when the user is seeking entertainment outside the house. Thus a need was felt for an entertainment system which addresses the above mentioned limitations of the present devices. Sachin Bharadwaj, the CEO of Sacona Entertainment India, pursued his passion for wholesome entertainment and decided to venture to fill in a void in the entertainment industry i.e. the missing combination of movie watching, gaming, listening to music, conferencing and just relaxing in a private exquisite environment. Being an electronics engineer and having ex-perience from the consumer electronics industry, he could successfully apply his innovation and knowledge to fill the gap in the arena of wholesome entertainment. During October 2007, the idea of renting a theatre was conceived by Sachin. He wanted to provide the home theatre entertainment in an exclusive and exquisite environment for a small group of 10 people. The idea was to open at least two such theatres in a busy street where people in groups could watch movies of their choice in this specialized environment. The idea then evolved to provide an even more private environment for a smaller group of just two people. This entertainment unit was christened eO, which stands for entertainment inside an "O". During Jan 2008, the idea of an eO was conceived by Sachin and he worked his way to create a rough demo piece just within a week of hitting upon this new concept. The first piece was a box of ply wood with a normal door like entrance. A PC with a 21 inch monitor was housed in it to enable movie watching. Next an Xbox was added to play games as well. Kids loved to get into it because they thought it to be a ‘doll house’. Sachin then conceptualized a very high end environment for the unit. Acoustics was studied and materials were pasted all over inside this unit to create an effective and impressive sound environment. During March 2008, the basic idea had been translated into a real box equipped suitably to watch movies and play games in a great environment. Soon after, Sachin started work with a design house in Bangalore to create the new look of the unit and lo! the eO was conceptualized! The next task was to build a complex device like an eO without moulds and patterns and still make it look as great as the eO that was conceptualized. It took six long months to get the eO ready for the demo purpose. By end of Dec 2008, the prototype of the eO took off. It looked a lot like the eO in the concept and the team at Sacona was proud of it!

Page 4

StartUp in Focus : SACONA ENTERTAIMENT

Page 5 FinXpress

Markets this week

Markets this week had overall negative sentiments with Sensex ending in red in 3 out of 5 trading sessions. However there was

something to cheer during the last two days as markets bouced back on hopes that Greek referendum may not happen. Sensex

was down with loss of 1.4% while Nifty too ended the week 1.4% lower closing at 17562.21 and 5284.20 respectively.

The top gainers during the week were Shree Ashtavinayak, Nelco, Allahabad Bank and Allied Digital gaining 21%, 16.7%, 15.8%

and 15% respectively. The top losers were JP Infratech, Whirlpool, Sterlite Industries and Tata Motors, which fell by 14.2%,

9.7%, 8.9% and 8.8% respectively.

All the sectoral indices except FMCG, Power and Realty ended

the week in red. The top losers were Auto, Metals, Consumer

Durables and Oil & Gas, which lost 3.4%, 2.5%, 1.7% and 1.7%

respectively. FMCG, Power and Realty rose by 0.7%, 0.5% and

0.1% respectively.

Food Inflation rose to 12.21 for the week ended October 22. It rode on escalating prices of tomato and protein-based items due to supply shortage that aggravated amid surging demand during the festival season.

Key Highlights during the week

India's exports grew by 36.3% on an annual basis to $24.8

billion in September, 2011, demonstrating impressive year-on

-year expansion despite a slowdown in the US and Europe.

India has cut its forecast for fuel demand in the current fiscal by nearly 1% to 146.9 million ton because of a slowdown in

economic activity.

With rising input costs and high interest rates, growth in eight key infrastructure sectors slowed down to 2.3% in

September from 3.3% a year ago.

India's service sector contracted for a second straight month in October, as new business grew at its weakest pace since

May 2009, a survey showed on Thursday, dragged by weak

global demand and tight monetary policy.

ECB trimmed interest rates by a quarter point to 1.25

percent surprising global markets.

China's official PMI registered its lowest reading since

February 2009, an unexpected decline that reflected a drop in

new export orders. The overall index dipped to 50.4 from Sep-

tember's 51.2, edging closer to the 50 line that separates

growth from contraction.

Gold prices fell by Rs 95 to Rs 28,315 per ten gram in the

bullion market today on reduced offtake by retailers and

jewellers at prevailing higher levels amid a weakening over-

seas trend.

Page 6 FinXpress

News of the Week

RBI to consider easing of

rates in December

With the inflation expected to come

down next month, sources from the RBI

have said that they may ease the interest

rates. RBI has hiked interest rates 13

times since March 2010 in order to

control inflation which stood at around

9% for nearly a year. According to

Mr.C.Rangarajan, fovernor of the RBI,

however, the head inflation may take

another two months to come down.

India’s growth has been slowing down

due to the cumulative rate tightening of

375 basis points. Yet the RBI continues

with its fight against inflation being the

only central bank implementing

tightening monetary policy.

TATA Group looking to buy

assets of Australia’s New

Hope Corp

Tata group is looking at the assets of

Australia's New Hope Corp, a $5 billion

coal miner that put itself up for auction

last month, and could consider a bid in

the future, a source with direct

knowledge of the matter said on

Saturday. Tata group firms Tata Power

and Tata Steel have been on the lookout

for coal assets in recent years to feed

their growing raw material requirements.

A spokesman for Tata Steel said the com-

pany is evaluating various options for raw

material assets but declined to comment

on any specific deal. New Hope is con-

sidering a break-up and asset sales

amid interest from global resource

companies, sources had said last

month.

International Banks

announce close to 110,000

job cuts

Banks are shedding jobs worldwide as

stricter regulations and a tough six

months for trading income take their

toll on investment banking units.

Switzerland's Credit Suisse said this

week it was cutting another 1,500 jobs

on top of an earlier round of 2,000

layoffs. Dutch financial services group

ING added to the tally with 2,700 jobs,

most of those permanent positions.

Japan's Nomura is also looking to slash

over 1,000 jobs, a source with

knowledge of the matter said. The

layoff plans brings staff cuts

announced this year or reported to be

in the works at major banks to

109,000, some of them to be lost over

three- or four-year programmes.

BNP Paribas in talks to buy

Geojit Financial Services

French lender BNP Paribas is in

advanced talks to buy out its Indian

partner Geojit Financial Services in an

institutional broking joint venture.

However, both BNP and Geojit will

continue the relationship in the retail

broking business. BNP Paribas holds

50.1 percent stake in the three year-old

joint venture -- BNP Paribas Securities

India - while Geojit, in which billionaire

Indian investor Rakesh Jhunjhunwala

hold a significant stake, controls the

remaining stake. The joint venture,

catering to domestic and foreign

institutional clients, was set up after

the French lender bought a strategic

stake in the retail broking business of

Geojit Financial Services, which is now

Geojit BNP Financial Services.

IRDA strict on Motor

Insurance Companies

Insurance regulator IRDA has warned

non-life insurers against evading claims

on the mandatory personal accident

cover that these companies are

required to provide with each motor

insurance policy. IRDA has written to

the insurers, directing them to ensure

that nomination papers for personal

accident cover are duly filled in at the

time the policies are sold. The directive

follows complaints that insurers have

evaded crores of rupees in claims,

because either the consumers were not

informed or the nomination papers

were not properly filled in. Motor

insurance constitutes the largest

non-life insurance segment, with a

share of about 48%. Non-life insurers

collected a total premium of Rs 28,604

crore during April-September 2011,

compared with Rs 22,744 crore in the

corresponding period last year.

UTI Mastershare fund

declares 22% tax-free

dividend

UTI Mutual Fund today declared a

tax-free dividend of 22 percent for the

UTI Mastershare Unit Scheme. It is the

25th consecutive dividend declared

under the scheme. The record date for

the proposed dividend is October 31,

and all unitholders registered under the

dividend options as on October 31,

would be eligible for dividend. As on

October 25, the NAV per unit of the

scheme was Rs 27.54 under the

dividend option. UTI Mastershare Unit

Scheme i s an open -ended

equity-oriented scheme. The

investment objective of the scheme is

capital appreciation and income

distribution through investment in

equity and equity-related instruments.

As of September 30, UTI MF manages

average assets of Rs 62,579.86 crore.

Cement stocks firm up on

price hike buzz

Shares of cement companies surged on

speculation that prices will rise by Rs 10

per 50 kilogram bag in North India.

ACC, Ambuja and Shree Cement surged

1-5% to Rs 1,223, Rs 116 and Rs 2,000,

respectively, on the BSE. With indica-

tions that interest rates may have

peaked, some of the construction pro-

jects that were on the back-burner may

come back to life. Furthermore, with

Page 7 FinXpress

News of the Week continued...

real estate companies easing prices,

demand may pick up. "The price rise, if

it comes into effect, will neutralise the

ill-effects of lower demand for cement

so far," a broker said.

Genpact net profit up 19.7

per cent

India's largest BPO Genpact expects to

finish the year ahead of its 25% sales

guidance, buoyed by its close

integration with Headstrong and cash

flows from a dozen new deals it won in

the last six months. At the current

rate, Genpact aims to finish the year

with about $1.6 billion in revenues.

Genpact's revenues for the quarter

ended September 30 grew 34% over

the year-ago period to $429.6 million.

The company's net profit grew to $48

million, up 19.7% from last year. Due

to the Headstrong acquisition, IT

business is contributing almost a

quarter of the revenues, helping it

surpass smaller rivals in growth.

Genpact's largest customer GE contrib-

uted about 29% to its revenues while

revenues from non-GE clients was

about 71%. The non-GE business grew

about 54% from last year while GE

revenues rose by only 0.8% against the

third quarter of 2010.

Cognizant emerges new

leader

Cognizant Technology Solutions kept

up its searing pace of expansion in the

July-September quarter, establishing

itself as the clear growth leader for India-

based rivals to emulate and mounting a

serious challenge to multinational

competitors such as IBM and Accenture.

For the fifth quarter in a row, Cognizant's

revenue growth topped 30% and it

bumped up sales and earnings forecasts

for the financial year which ends in

December. Cognizant also increased its

forecast for earnings per share to $2.83

from $2.78. Its shares were trading

around 2.5% lower in early morning

trade on the Nasdaq stock exchange

whose main index was up 1%. Cognizant

is in the middle of a share buyback

programme with authorisation to

purchase up to $600 million of its stock.

Cartoons

Solve it Now!

We are on the web !

http://www.facebook.com/FinNiche

http://www.imtgfinxpress.co.cc

Page 8

**Rush in your entries to : finniche.imt@gmail.com

The right entries will get their name featured in the next issue

of FinXpress. So hit the quiz fast & get yourself visible among

1000 odd in the campus.

Set A

Q1. Which brand began its journey as 'Brahmanara Coffee Club'

Q2. In which country's coins you can found the following lines

imprinted, 'This is the root of all evils' ?

Q3. Name the first Indian woman CEO of a Foreign Bank?

Q4. Who started the Wall Street journal?

Q5. The government has recently decided to augment the capital

base of which institution by infusing a capital base of 3000 crore

rupees as government equity?

CAN YOU SOLVE IT ?

Feel free to write to us at : Drop in your suggestions to the editorial team :

finniche.imt@gmail.com Magazine design/news : ameybadkar@hotmail.com

LAST WEEK’S RIGHT ENTRIES WERE FROM :

Rahul Dutta Gupta

Ayush Madan

Correct answers of last week

7up, Germany, Nike, Sony, Swallow Sidecar/SS

1998, London, Dennis M.Nally

1987, Amstelveen Netherlands, Michael Andrew

1845, New York, Stephen Almond (Chairman),

Barry Salsberg (CEO)

1989, London, Jim Turley