`0.01

`236.35142.8812

business Srinagar March 17, 2013, Sunday

Greater Kashmir`19Sensex Nifty Gold /10gm Silver /Kg Dollar19427.56 5872.60 `29,378 `54,190 `54.02

Of stock selectionInvestors before investing in a company

should first check Return on Equity (RoE) and then look at other aspects of the company. RoE is an indicator

about how efficiently the company uses shareholders’ money and how much it

earns with that money.

J&K is a state where most of the inves-tors park their money in companies

without analyzing the fall out of their investment. For most of them, buying the shares of a company means wealth to them. It’s not only lack of awareness about the market dynam-ics prevalent among the local investors, but lack of professional financial consultants in the State too has led to losses suf-fered by the local investors. Some time back a local investor narrated his own tale of ignorance about the equity market. He had some savings and wanted to turn his fortunes in the stock market. His most difficult task was to pick a perfect stock from the market. Gather-ing some opinion here and there, he ultimately approached to a local ‘financial consultant’ who advised him to invest in a company which has high return on equity (RoE).

What’s this rate of return on equity (RoE)? This is the question which he had asked his ‘consultant’, but couldn’t get exact answer. Even as he invested in some companies, but this RoE con-tinues to baffle him. Can you explain it? This is what he asked to me through an email. Let me explain it that in stock selec-tion, an investor should primarily focus on return on equity (RoE) and then look at other things. This is the most meaningful when you consid-er investment in share market. Of course, other things like market share, brand value, corporate gov-ernance, etc. are equally important to judge the strength of the company of which you are buying the shares. But, these are sec-ondary. In simpler terms a company can claim itself good if its return on equity (RoE) is soundly reflected in its earnings.

Let me quote Warren, an American business magnate who is noted for his adherence to the value investing philosophy. Buffett believes that the return that a company gets on its equity is one of the most important factors in making successful stock investments. Investopedia defines the RoE as the amount of net income returned as a percentage of sharehold-ers equity. It measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested. It’s expressed as a percentage. It’s notable that the RoE is useful for comparing the profitability of a com-pany to that of other firms in the same industry. Wikipedia, the free encyclopedia describes that Return on equity (RoE) measures the rate of return on the ownership interest (shareholders’ equity) of the common stock owners. It measures a firm's effi-ciency at generating profits from every unit of share-holders' equity (also known as net assets or assets minus liabilities). RoE shows how well a company uses investment funds to generate earnings growth. Meanwhile there are certain things in the con-text of RoE to remember. By averaging RoE over the past 5 to 10 years can give you a better idea of the historical growth. Besides, investors should expect a higher RoE for high growth companies. Calculating return on equity of a company is not a brain storming proportion and encompasses the three pillars of corporate management - profitabil-ity, asset management, and financial leverage. There are certain things, which need to be taken care of while calculating return on equity. It is calcu-lated by taking a year's worth of earnings and dividing them by the average shareholder equity for that year. It can also be figured as the sum of the past four quarters' worth of earnings, or as the average of the past five or 10 years' earnings, or it can even be an annualized figure based on the previous quarter's results. It’s here where the investor has to remain alert. As pointed out by investment experts, the investors should be careful not to annualize the results of a seasonal business, in which all of the profit is booked in one or two quarters. In succinct, RoE in essential terms is profit after tax (PAT) expressed as a percentage of the total net worth.. Always turn a deaf ear to a company that makes the right noises, but does not earn enough, as they claim. And one more important point – just check that the RoE is sustained by the company in which you are planning to invest by not approaching the mar-kets with repeated offering of shares. If it’s so, then look for other investment avenues.

(The views are of the author and not the institution he works for. Feedback sajjadbazaz@greaterkashmir.com)

CalCulating return on equity of a Company is not a brain storming proportion and enCompasses the three pillars of Corporate management - profitability, asset management, and finanCial leverage.

Sher-e-KashmirUniverSity of AgricUltUrAl ScienceS & technology of KAShmir

Shalimar campus -191121Phone/fax no.: 0194-261271

not iceSubject : Conduct of Practical/Driving Test of Drivers Reference : Advertisement Notice No. 06 of 2012 dated: 23-05-2012 The practical/driving test of eligible candidates who attended the interview for the posts of Driver is scheduled to be conducted w.e.f. March 19,2013 at Main Campus, Shalimar, Srinagar on the dates given hereunder:Dates of conduct of

Practical/ Driving TestS. No. of Application Form/General List

March 19, 2013 (Tuesday)

01-08,13-15,17-19,21,23-26,28,30-33,35, 37-39,41-56,58-64,66, 68-71,79, 83, 85-87, 89,91-95,97-99,101, 104-105, 112,116-119,121,123, 126,128-130,132

March 20, 2013 (Wednesday)

133-135, 137-152, 154-156, 158-163, 165, 168, 169, 171, 173, 176-180, 182, 183,187, 188, 190-197, 199, 203,205,206,208-211,213,215-219, 221,223-225,228-230,234-238,240,241,243-248,252,253

March 22, 2013 (Friday)

254-258, 261-268, 270, 271, 273-284, 28, 289, 290, 292, 293, 295, 299, 300, 302, 303, 308, 310-313, 318-320, 322, 323, 327-331, 333-340, 342-348,350-352,354,356,358-360, 363-367,369; 370,372-374

March 23, 2013 (Saturday)

375, 381, 382, 384, 385,388-391, 395-402, 405, 408, 409, 413-415, 432-434, 436, 440, 443-445, 447, 448, 450-452, 455, 459-462, 465, 467, 469, 471-475,477-482,485,489-493,495-500, 502-504, 506-507

March 26, 2013 (Tuesday),

508, 510, 512, 515-532, 534-536, 538, 542-545, 550, 552, 558, 560, 562, 565, 566, 570, 572, 575-577, 580-584, 586-589, 591, 594-598, 603, 606-609,611-616,618,621,623-630,632-634,637,639-641,643

March 27, 2013 (Wednesday)

644, 646,647,649,650,653, 655,656,658, 659, 661-663, 665, 671, 672, 674-678, 680, 681, 684, 688-693, 695, 697-699, 701, 704, 705, 708-713, 715-717, 720, 721, 723-728, 730, 732, 734-737, 739-741, 743, 745, 747-750, 752, 755, 756-760, 762-764, 766, 767, 770, 771, 773, 774, 778, 786 & 458

Candidates are required to bring provisional call letters issued vide No. Au/Adm/(R&C)/13/25783-26426 dated: 05-02-2013 on the date of their practical/driving test. The detailed list of candidates bearing above S.No’s is available at SKUAST-K website www.skuastkashmir.ac.in

No TA/DA shall be paid for attending the practical/driving test.No. Au/Adm/R&C/2013/28465-82 Sd/ - Dated: March 16, 2013 Assistant registrar (R&C)006

government of Jammu and Kashmir

State institute of education, Srinagarn o t i f i c At i o n

The Class 8th T2- Bi-Annual Examination 2012-13 earlier scheduled to be held w.e.f. 18.03.2013 vide No SIE/MSE/2412-39 Dated: 11.03.2013 is rescheduled and shall be held now from 23.03.2013. All the stake holders are advised to follow the revised scheduled accordingly as under:

Date Day Subject23/03/2013 Saturday English24/03/2012 Sunday Kashmiri25/03/2013 Monday Science26/03/2013 Tuesday Social Science27/03/2013 Wednesday Urdu28/03/2013 Thursday Mathematics

Note : 1. ThecandidatesshalltaketheirexaminationattheComplexCentresidentified

by the respective DIETs.2. The DIETs involved in the examination process will make sure that the conduct

and evaluation is done side by side so as to ensure the declaration of results on or before April 5th 2013 positively.

Sd/- Principal/Joint Director TrainingsNo: SIE/MSE/2443-63 State Institute of Education

Kashmir.006

Dr.Wani abDul MajiDMD, MRCP (I), ATLS, ACLS Certified

Ex-Consultant Gastorentologist Emergentologist, Consultant Internist.

Hera General Hospital, Holy Makka (K.S.A). Presently Consultant Medicine Govt. Medical

College, SMHS Hospital Sgr. Now “Available” At:

TEHQEEQ DIAGNOSTIC & ENDOSCOPY CENTERShah Complex, Opp. Modern Sweets, Kaka Sarai, Karan Nagar Sgr.

Consultation Available : Mon - Sat Morning : 8:00 AM - 10 : 00 AM Evening: 4:30 PM - 7:30 PM

Facilities Available : Diagnostic & Theraputic Endoscopy (Upper GIE) Colonoscopy,Sigmiodscopy Polypectomies, PEG Tube Insertion. Biochemistry, Haemotology, Cytology, Histopathology, Microbiology. 24hrs Holter Monitoring, PC Based ECG.

Contact No’s :- 0194-2503098, 9906806306, 9906880474, 9419001641. Email ID : tehqeeq303@gmail.com.poolminv@yahoo.com,dr wani- majid@yahoo.co.in

LOOKING FOR DIAGNOSIS WITH AN EDGE

006

Keep shops open on Sunday: KTMF

CDR dropped to 35.5 pcin 2011: Economic SurveyMuKEET AKMALI

Srinagar, Mar 16: In a dismaying scenario, the banking sector in Jammu and Kashmir has showed “diminishing trend” in the Credit –Deposit Ratio (CDR), despite accumulat-ing deposits and grow-ing of bank branches in the state. The Eco-nomic Survey report 2012-13 states that the CDR has decelerated from 35.5 per cent in March 2011 to 34.36 per cent in March 2012, a net fall by 1.21 per cent in one year. The survey attributed this downward trend in CDR to imbalance in the growth structure of deposits and credit. “The banks operat-ing in the state except the regional rural banks have performed better in terms of higher growth in both cred-its as well the CDR,” it reads. As regards priority sector lending, the report

notes: “The achievement of banks on March 2012 has fallen short of targets fixed in respect of crop loan, small enterprises, micro-credit and education sectors.” Ironically, the credit deposit ratio has plummeted

from around 42 percent in 2008 to the lowest 34 percent in 2012 while the deposits have grown at a steady rate of around 21 percent during this period. The year-on-year growth in deposits as on March 2012 was higher at 20.68 percent in the State as compared to 13.78 percent at all India-level. Regarding branch expan-sions, the survey states that

the banks have increased the number of branches in the state. A total numbers of 147 new bank branches, mostly in semi-urban and rural areas, were opened in the State alone during 2011- 2012.

“This way the total number of bank branches operating in the State as on March 2012 stood at 1449 out of which 543 branches (37 percent) were private sector com-mercial banks, 358 (25 percent) public sector banks, 304 (21 percent)

regional rural banks and 244 (17 percent) co-opera-tive banks.” 54 per cent of the bank branches are located in the rural areas of the State. The population cover-age of banks in the State has improved further in the State. On an average one bank branch is available per 9,000 people in March 2012 as against 10,000 recorded for the previous year.

Campus placements conducted

Rana addresses JU biz school

studentsJammu, Mar 16: Provincial President National Conference Devender Singh Rana Sunday advised the students of JU Business School to be steadfast in their resolve to create a niche for themselves in the new world. Rana was addressing an interactive session during Industry-Academia Interface on the theme ‘Shaping Young Minds’ held in the University Campus. He highlight-ed the significance of aptitude in career development. Rana asked the young-sters to face the challenges of changing world with resilience and make their presence felt at the global level. ‘This is necessary for their growth and development’, he said. Rana said that India is a fast emerging market but has miles to go before it become happening market place of the world. He said and exhorted the young managers to strive hard to make this happen. GKNN

TASK felicitates

Kumar, ShahSrinagar, Mar 16: Travel Agents Society of Kashmir (TASK) today felicitated Shailendra Kumar as Div Com Kashmir; Farooq Shah as DC Srinagar. In a statement here today, president TASK M Ibharim Siah said all the members of the TASK have great expectations with them and “we hope they would address the issues of the tourism players in Kashmir and promote Valley tour-ism in a big way.” GKNN

GK NEWS NETWORK

Srinagar, Mar 16: Kashmir Traders and Manufacturers’ Federation has urged the traders to keep their shops and business establishments open on Sunday. President KTMF, Muham-mad Yaseen Khan appealed all the traders in the Valley to keep their business estab-lishments open on March 17 (Sunday). “In view the situa-tion prevailing for last some weeks during which trade remained suspended in the

Valley because of curfews, restrictions and shutdowns, we urge our fraternity to keep open their business establishments for the people on Sunday,” Khan said. “Many people have run short of essential commodi-ties and the business commu-nity has suffered huge losses due to strikes and curfews. So we have decided to keep the business establishments and shops open on Sunday so that people can shop and stock eatables and other essential items,” he said.

Jammu, Mar 16: The Fortsin Software Com-pany conducted campus placements at Vaishno College of Engineering for students of Computer Science, Electronics and Communication. The college in a statement said that all the students of these branches partic-ipated in an interactive session with the guests from the Fortsin Company. The team of Fortsin company was impressed by the students and urged them to work hard, it said. GKNN

OFFICE OF THE DISTRICT ELECTION OFFICER DEPUTY COMMISSIONER BUDGAM

“G r e at e r Pa rt i c i Pat i o n fo r a S t r o n G e r D e m o c r ac y ”

PUBLIC NOTICESubject: Summary fusion of Municipal Photo Electoral Rolls for Municipal Councils/ Municipal Committees.

The Chief Electoral Officer J & K Jammu has scheduled Summary Revision of Municipal Electoral Rolls 2013 and specified the period for filling claims and objections from 15-3-2013 to 25-03-2013 in respect of the Municipal Committees Budgam, Beerwah, Chadoora, Charisharief, Magam Khanshaib.

Such persons who are permanent resident of the state and who have attained the age of 18 years on 01-01-2013 and are eligible to apply for Inclusion in the Municipal Photo Electoral Rolls. Any person whose name or other particulars may not have been correctly incorporated in the existing photo Electoral roll can apply for necessary corrections before the concerned Electoral Registration Officer (Tehsildars) or Assistant Electoral Registration Officer (Executive Officer of the Municipal Committee concerned) within the above specified period.

Applications shall also be received by the ERO/ AERO concerned upto 25-03-2013 for deletions of such persons who are dead or who may have shifted their place of residence.DiPK-15613 Sd/-

District election officerBudgam004

GOvERNMENT Of JAMMU AND KASHMIR

Directorate of School eDucation, KaShmirSubject:- Tentative seniority list of Masters/ Head-Teachers

C I R C U L A RWhereas, the revised seniority list of Masters was circulated vide No. DSEK/ZEO-HM/1369

Dated 17/10/2012 for verification of service particulars;Whereas, the objections received by the Department in response to the above Notification

have been examined and shown at appropriate place in the list;Whereas, again a list containing service particulars of 396 Masters/ Head-Teachers was

circulated among all Chief Education Officers vide letter No. DSEK/ZEO-HM/1450 Dated 20/02/2013 for its further verification;

Whereas, the verification reports have been received from all Districts and the necessary corrections/ inclusions wherever required have been made in the said seniority list;

Whereas, the petitioners of SWT No. 486/2012 through representation Dated: 12/03/2013 have also requested for fixing their seniority as Master due to them as per rules/ norms/legibility along with other Masters of Kashmir Division at appropriate place and have undertaken to withdraw the Writ Petition unconditionally;

Whereas, the petitioners have been considered for placing them at appropriate places in the seniority list of Masters as per their due promotion as Masters along with other trained-graduate/ trained post-graduate Teachers;

Whereas, after consideration of petitioners request under rules, the petitioners are placed at appropriate place(s) in the seniority list.

Now, therefore, the said tentative seniority list comprising 2448 Masters/Head-Teachers to this Circular is hereby once again notified for inviting objections, if any, from the members of service. The said Circular including its enclosures is available on the official website of Director School Education, Kashmir (www. dsek. nic, in) and hard copies are also available in the Offices of all Chief Education Officers. The objection(s), if any, should reach this Office duly endorsed by the concerned Chief Education Officer within 05 (five) days from the issuance of this Circular and no claim will be entertained after the expiry of the stipulated period.

DiPK-15569 Sd/-Director School education,

Kashmir004

CMYK

CMYK