ISSUE - 128 28th SEPTEMBER [THURSDAY]
SYNOPSIS - KRITIKA SETHI
This week through our cover story we are trying to throw light on the culpability of our Ex– finance minister P. Chidambaram on the issue of 2G spectrum and the „heat‟ faced by him in this regard by the opposition party. BJP wants to call on for the further investi-gation in this context as this can further tarnish the government‟s image
Every human has an urge to create a piece of history for themselves, they want to be im-
mortalized in the golden pages of history. For this they resort to any means which is quite
evident in Telengana issue or any other issue in recent times. All the news channels are
cluttered with the corruption instances of our country. What is making our Prime Minis-
ter to sit back blindfolded. Get our writer‟s opinion in this regard in our Opinion Forum
this week.
Rolex, an epitome of luxury is truly an legendary collection of watches which becomes
fantasy of every watch owner is discussed about in our brand track section. Rolex is a
timeless and eternal piece for its owner.
As our Focus of the Week this time the gradual shift in the financial system in the world
from GAAP to IFRS. India is one of the over 100 countries that have or are moving to-
wards IFRS convergence with a view to bring about uniformity in reporting systems
globally, enabling Businesses, finances and funds to access more opportunities. Get to
know more about them here this week.
Moreover we have our regular sections of Fast Track, Quick Bites, Market Watch and a
special dose of News @ IBS to give all of you a glimpse of the happenings last week on
campus!
Happy Reading!
Cheers,
Kritika Sethi
EDITOR 1 OPINION 5 FOCUS 8
COVER 2 BRAND 6 NEWS @ IBS 9
FAST-TRACK 3 QUICK BITES 7 MARKET 10
COVER STORY– FINANCE MINISTER ON THE ’HOT’ SEAT - AVINASH ROY The Bhartiya Janata Party (BJP) on Friday 23 Sept, 2011 said the „culpability‟ of P. Chidambaram was
evident in the 2G spectrum scam and demanded a fair investigation into his role as the finance minister in
allocation of the scarce spectrum in 2008. Adding up to the attack on Chidambaram, BJP spokesperson
Ravi Shankar Prasad said the government‟s image will be further tarnished if it does not order an investi-
gation into his role. Reiterating its demand for the resignation of Chidambaram, BJP wanted to know at
whose behest was the much publicized note by the finance ministry prepared? BJP alleged that even in
the case of former telecom minister A Raja, who is now in jail in connection with 2G scam case, the
Prime Minister had initially said twice that he is not guilty. “Is the same story going to repeat itself in the
case of P Chidambaram?” Prasad said. He said the government cannot get away by saying this new de-
velopment is also due to coalition politics as the „source of exposure‟ has come from the finance ministry
itself.
However Congress rejected the opposition‟s demand for the resignation of
Home Minister P Chidambaram on 2G spectrum allocation. As the united
opposition gunned for his resignation, both Prime Minister Dr. Manmohan
Singh and Congress-led UPA Government on Thursday (22 Sept, 2011)
threw their weight behind Home Minister P Chidambaram, who is facing
the „heat‟ after a „secret‟ note to the Prime Minister by Finance Minister
Pranab Mukherjee, raised questions over his alleged role in the 2G spectrum
allocation controversy. Mr. Mukherjee had sent a note to Dr. Manmohan
Singh in March 2011 saying Chidambaram (as then Finance Minister) could
have prevented the scam. An official Finance Minister document has raised
doubts over the role of Chidambaram, in January 2008 decision of former
telecom minister A Raja to issue 2G spectrum licenses.
Regarding the recent activities in the 2G spectrum case, the CBI however on Tuesday (20 Sept, 2011)
said Supreme Court did not have the jurisdiction to entertain Janata Party president Subramanian
Swamy‟s plea for a probe into the then Finance Minister P Chidambaram‟s alleged role in fixing spec-
trum prices along with ex-telecom minister A Raja as the 2G scam trial had started. Senior advocate K.
K. Venugopal, appearing for CBI, told a bench of Justices G S Singhvi and A K Ganguly that since trial
had commenced after filing of charge sheets on completion of probe into the spectrum scam, only trial
court had jurisdiction to decide whether further probe on any aspect or against any person be carried out.
The bench also said, “Swamy has shown documents to allege that it was a joint decision (pricing of spec-
trum). His application is to find out whether the other gentleman had any meeting of mind in that decision
making. Swamy alleges that CBI failed to proceed as per the apex court‟s December 16 order and wants a
direction for further investigations in view of the subsequent facts.
In the midst of this fresh controversy in the 2G spectrum case, the current national hero and social activist
Anna Hazare said that Home Minister P Chidambaram would have been behind bars had the Jan Lokpal
legislation been in existence. “Had there been a Jan Lokpal now, Chidambaram would have been in Jail,”
Hazare, who earlier branded the Union Minister as a “mischievous person”, said. Meanwhile, Congress
chief Sonia Gandhi has directed top leaders to put up a joint defense, party insiders said. Mrs. Gandhi,
who has recently returned after a surgery abroad, is learnt to have stepped in to resolve the crisis involv-
ing one of the government‟s most high profile ministers.
This tenure of the UPA Government has been full of challenges which they have not been able to handle
sincerely. Inflation and corruption charges against many Congress lawmakers had already hampered the
Congress party‟s image during the Assembly polls in West Bengal, Tamil Nadu, Assam, Kerala and
Pondicherry. Scams like the 19th Commonwealth Games, Adarsh Housing Society Scam, the multi-billion
dollar telecom scam and the most recent actions against the anti corruption movement has left the ruling
Congress Party in a humiliating position. It is high time for the UPA government to pull up its socks and
try and improve their image or else they may have to face severe consequences in the upcoming Elections
in 2014.
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An official Finance
Minister document has
raised doubts over the
role of Chidambaram, in
January 2008 decision
of former telecom minis-
ter A Raja to issue 2G
spectrum licenses.
Mr. Mukherjee had sent
a note to Dr. Manmohan
Singh in March 2011
saying Chidambaram
could have prevented the
scam.
FAST-TRACK NEWS - KRITIKA SETHI
.
Quorum- The minimum acceptable level of individuals with a vested interest in a company needed to make the pro-
ceedings of a meeting valid under the corporate charter.
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Former cricketer –Mansoor Ali Khan Pataudi passes away Mansoor Ali Khan Pataudi better known to cricket lovers as the legendary „TIGER PATAUDI‟ got his final farewell on Friday at the Pataudi house in South Delhi. He was suffering from lung infection and was admitted to Sir Ganga Ram Hospital. Close friends and acquaintances poured in their condolences to the family.
Yet another question mark- WTO losing credibility It is prospected that WTO is on the edge of losing its credibility due to the deadlock of Doha round of talks from the past 2 years. The main agenda of the talks were the development issue of global trade. USA is considered to be a spoilsport in this matter due to the political pressure from the Obama gov-ernment. The rescue is expected only in 2012 when fresh elections of the US government take place.
PPP under review – Government aims at transparency in road and highway sector The Govt. is being optimistic in meeting the magical figure of $ 1 trillion in the Infrastructure sector- road and highway. It is ready to amend the Public Private Partnership – RFQ and model Concession agreement. Suggestions are being invited from industry experts to bring more competitiveness and private sector participation.
US stocks end on a quiet note The brutal week for the US markets ended on a quiet note but worries about the economy are still splurging worldwide with special reference to Copper, Gold and other commodities. US is supposedly heading for another recession as Federal Reserve‟s efforts to make to regain its foothold go in vain.
Recession soars Asian market With global recession underway, Asian stocks faced a sharp decline. The precipitous session of trad-ing at Wall Street sparked fear everywhere. Hong Kong's Hang Seng index plummeted 3.6 per cent to 18,138.32, with blue chip property developers among the biggest losers. China Resources Land Ltd. tumbled 10.1 per cent while China Overseas Land & Investment slid 7.9 per cent. China Vanke Co. lost 3.8 per cent.
P. Chidambaram’s involvement in 2G Spectrum case Opposition party leader – Yashwant Sinha said that P. Chidambaram should be put in Tihar jail with A. Raja for his alleged involvement in the 2G spectrum scan. He also expressed his concern regarding the unresponsiveness of PM Manmohan Singh in this respect.Opposition members in JPC termed it as a „serious lapse‟ non-submission of a Finance Ministry note on the 2G spectrum issue before the com-mittee and demanded that the Finance Secretary be called before it to give clarification.
Air mishap averted at Chennai airport On Saturday, Delhi bound Jet Airways airline was stopped on the runway, though it had been cleared for takeoff, as Air India flight was about to land. Airport authority sought explanations as to why the plane was stopped and said the Delhi-bound Jet Airways plane was taxiing on the runway at 0840 hrs when it stopped at the end moment. At the same time, the Chennai-bound Air India flight from Delhi was given landing permission by the Air Traffic Control (ATC).
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Poison pills- A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target com-
pany attempts to make its stock less attractive to the acquire.
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Mumbai triple blasts group identified Maharashtra Director General of Police, Ajit Parasnis, commented that the police has identified the
group which carried the July 13 – triple blasts. But the names were refused to be divulged.
Germany planning to share information on black money with India German ambassador- Thomas Matusset said on Friday that Germany is planning to share information on black money with India. It has already shared the same with the Swiss government. The names of those Indians who have accounts abroad and are tax evaders will be disclosed soon.
Pakistan compelled to break ties with Haqqani network US authorities have asked Pakistan-ISI to severe its relations and links with Haqqani Network of Tali-
ban with immediate effect. US consider this tie to be a major threat to the people of US or Pakistan.
Obama administration believes and knows that the Haqqani network was responsible for the attacks
on the US embassy in Kabul and the International Security Assistance Force (ISAF) headquarters, and
a number of other recent attacks that caused death and injury not only to Afghans but to American sol-
diers.
NASA’S dead satellite falls over Pacific Ocean
NASA‟s dead six-ton satellite fell to Earth starting its fiery death plunge over Pacific Ocean. US Air Force Joint Space Operation Centre and NASA say that it expected that the satellite would fall over 500 mile .The 35 foot Satellite fell sometime between 0123 GMT and 0509 GMT.
Sachin refuses to react to Shoaib Akhtar’s charge Responding to Shoaib Akhtar‟s remark, Sachin said, “It‟s below my dignity to react on Shoaib‟s com-ment.” Tendulkar‟s childhood friend- Vinod Kambli- quickly defended him by saying that Sachin was an architect of many great innings as he was never scared of Akhtar‟s bowling.
Royal Challengers Bangalore defeated by Warriors RCB was defeated by 3 wickets during Champions League T20 opener at Chinnaswamy Stadium in Bangalore on Friday. Put to bat, RCB scored a fine 172 for the loss of eight wickets, but the total proved little for the Warriors, who crossed the mark with three wickets to spare. And it was Protea batsman Ashwell Price's 74 that saw them through, though they lost wickets regularly.
Sri Lanka’s new coach- Geoff Marsh Former Australian batsman Geoff Marsh was named Sri Lanka‟s head coach succeeding Trevor Bay-liss who stepped down after World Cup in April. Marsh was earlier associated with Zimbabwean team and has given up his current job with IPL Pune for the two year contract with Sri Lanka.
OPINION FORUM– FORGET ME NOT - ANKIT SHARMA
“Men are haunted by the vastness of eternity and so we ask ourselves, will our actions echo
across centuries, will strangers hear our name and wonder who we were, how bravely we
fought, how fiercely we loved.”
Looking at the recent Telangana riots reminded me of these opening lines from the movie Troy.
Everybody wants a piece of history for themselves; everybody wants to be immortalized in the
golden pages of history, irrespective of how they get it. Even if it is at the cost of someone‟s life,
they don‟t care, so long as we are not talking about their own lives. Now all of you must be won-
dering who am I talking about when I say they, them etc. Well I am talking about all our politi-
cal leaders and not just from Andhra Pradesh but from all across the country.
I think one of the main motivators behind people joining politics is that they want to be remem-
bered forever and as their career progresses they are so blinded by this ambition that they stop
caring about how they do it, they just want it done. Take for example our very own Prime Minis-
ter Mr. Manmohan Singh, an astute economist who lead
India to safety during the turbulent period of 1990-1991
but look at him now just because he did not want to lose
the post of Prime Minister, he overlooked so many wrong-
doings. Now most of you would argue that he was under
immense pressure from the Congress high command
(Sonia Gandhi) and that he could have done nothing else.
Well my opinion would differ a little, even if he was under
pressure he should not have ignored such blatant issues of
corruption, he is after all the Prime Minister and it is his
responsibility to do what is right for the country but like I
mentioned blinded by his own ambition to remain in power
he did nothing and the result is out for everyone to see.
Another such example is that of Telangana, hundreds of people have died already, millions have
been lost in revenues but these so called leaders are so busy with their own purpose that they
have stopped caring about everyone else. It‟s okay if people are dying, at least the leaders would
be remembered as visionaries who helped carve out Telangana.
I pity such lowlifes. They should realize that though they would be remembered for a very long
time it won‟t be because they helped carve out Telangana or bring black money back to India,
they will be remembered as murderers and dacoits who killed people and looted money just to
satiate their hunger. Md.Ali.Jinnah is still seen as an anti-hero for the part he played in the In-
dia – Pakistan divide. Everybody remembers him as the reason for the communal riots at the
time of independence; I am pretty certain that‟s not what he would have wanted.
I would just like to remind all those who want to be immortalized in the pages of history (I love
this phrase), that it is not possible. No matter what you do or how you do it, people will forget
you after a while and there is nothing one can do about it. It is not possible to be remembered
forever. All that one can hope for is that the world remembers you for the right reasons, what-
ever may be the span of time.
Ovobody- A condition in which a market is considered to be overbought, overly bullish, overvalued and is experi-
encing upward pressure on Treasury yields.
THE IBS TIMES
Men are haunted by the
vastness of eternity and
so we ask ourselves,
will our actions echo
across centuries, will
strangers hear our name
and wonder who we
were, how fiercely we
loved.”
Md.Ali.Jinnah is still
seen as an anti-hero for
the part he played in the
India – Pakistan di-
vide.
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BRAND TRACK— ROLEX : THE ROYAL CHRONOGRAPH..! - POOJA DALAL
Rolex personifies achievement, exquisiteness, elegance and an attitude that says „unyielding‟ come what
may! And Rolex will do all it takes to keep your watch ticking, for not all who aspire for it, actually own
it.
The legendary collection of watches that would go on to become the fantasy of every watch owner was
founded by Hans Wilsdorf (originally as 'Wilsdorf & Davis‟ in London). From the very start Rolexes
were known for their quality of not loosing time due to perfect movements and in 1910 Rolex went on to
acquire Swiss certificate for precision.
Not only did the customers trust the brand, but it trusted them back. During World War II, Rolex offered
to replace every single confiscated time piece of its army officers, not even asking for payment until the
end of the war. There have been countless such instances where the brand has stood up for a cause, trust-
ing the consequences of its decision and inspiring confidence in all involved. Apparently this is the sub-
tle pride that inspires its ownership.
Positioned as a luxury brand, Rolex was initially sold to jewellers
(who acted as dealers) and then they finally got the place they de-
served i.e. the Rolex showrooms. It makes the watches available
worldwide with the help of 28 affiliates in different countries and
dealers in almost all major cities. But unlike many other brands, it
has not gone with the internet sway. It has stressed on selling
through the traditional channel as internet may dilute its exquisite
aspect. Rolex has not, and will not change, just for change‟s sake
was the belief.
The bane of any luxury producer „low volumes‟ has not been able
to affect Rolex. In a year, Rolex factories manufacture only about
6 lakh watches. But still Rolex records higher revenues from six lakh watches as compared to Swatch‟s
revenue from 10 million watches per year! Rolex is able to command high prices owing to the artistic
precision with which it crafts every single chronograph. Each time piece is worked upon by specialized
craftsmen (including gem setters, watchmakers, chemists etc). And every single aspect from the blue
parachrom hairspring oscillator to the perpetually scratch free bezel is the in-house innovation of Rolex.
Maintaining a fine balance between the tradition and innovation, Rolex has retained the classic touch in
its watches along with adding the latest features. It has many firsts to its name and has been preferred
alike by the celebrities and achievers. Along with great looks it is apt for mountaineering, deep sea div-
ing and leaving aside utility, it is a perfect way to impress your date.
The name that brings luxury to its owners is also helping many realize their dreams. Rolex rewards
many enterprises that it thinks are trying to change the world for better. It provides such organisations
with support in various forms. It also helps many talented protégés to get the mentor they have long de-
served, thus nurturing a budding talent for overall value addition to the world. There is also a young lau-
reates program conducted where exceptional talents in all fields are encouraged. It is a unique way of
contributing to the progress of the world and Rolex is doing so very elegantly.
It may though be a farfetched dream but one can always aspire for it. But please consider your choice of
profession and personality before you choose your Rolex, as they speak for themselves and have a per-
sonality of their own. So what‟s your choice of Rolex? Date just or explorer? Daytona or watch master?
You may also consider the eternal „Oyster Perpetual‟.
THE IBS TIMES
The name that brings
luxury to its owners is
also helping many realize
their dreams. Rolex re-
wards many enterprises
that it thinks are trying to
change the world for bet-
ter. It provides such or-
ganisations with support
in various forms
The legendary collection of
watches that would go on
to become the fantasy of
every watch owner was
founded by Hans Wils-
dorf.
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QUICK BITES- NEWS THAT CAN’T BE MISSED ! - AVLEEN KAUR Big Shots…
Ramesh Abhishek has been appointed as the chairman of Forwards Market Commission.
Sharad Pawar to head GoM on manufacturing policy.
Srini Koppolu an angel investor appointed as SETU chairman.
Meg Whitman appointed as President and CEO of Hewlett Packard .
Company Talks…
NMDC close to 50% stake buy in Australian miner Legacy Iron Ore.
Chrys Capital to raise $ 350mn fund to tap high growth markets.
UFO Movies raises Scrabble Entertainment‟s stake to 52%.
Oil India to invest Rs 4000cr in overseas acquisitions.
Nova Medical will raise $50mn for supply network upgrade.
Fortis Healthcare to acquire overseas sister firm Fortis Healthcare International.
GVK group acquiring strategic part of Hancock coal for $1.26bn to secure fuel supplies.
Welspun Infratech buys 50% stake in ARSS Infrastructure project.
SABMiller to buy Foster‟s for $10.2bn.
Everonn to sell 12% stake to GEMS Education.
Economy Speaks…
Food inflation slips to 8.84% from 9.47% in the previous week, but no relief.
India to see 8% growth despite global economic slowdown-IMF.
India‟s FDI declined by 3.81% year on year in July to $1.09bn.
Imports of sensitive items up by 34.5% to Rs21537cr.
Forex reserves rise marginally up by $266mn.
The Captains of the Ships..
RBI Governor- Duvvuri Subbarao
UBS Chief Executive Officer – Oswald Gruebel
Chief Economic Advisor – Kaushik Basu
Union Home Minister – P. Chidambaram
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FOCUS OF THE WEEK– INTERNATIONAL FINANCIAL REPORTING STANDARDS - AKSHAY AGRAWAL
DAX-A stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt
Exchange. The prices used to calculate the DAX Index come through Xetra, an electronic trading system.
THE IBS TIMES
As we contemplate the severity of the on-setting recession of the United States (read world‟s most powerful econ-
omy) and the impending Euro-zone crisis, there is another change that the world financial system is witnessing, a
gradual shift from the GAAP (Generally Accepted Accounting Principles) to the IFRS with as Brazil beginning in
2010 to the final leg of its deployment in the United States of America (2014-2015).
India is one of the over 100 countries that have or are moving towards IFRS (International Financial Reporting
Standards) convergence with a view to bring about uniformity in reporting systems globally, enabling Businesses,
finances and funds to access more opportunities. Indian companies are listed on overseas stock exchanges and
have to recast their accounts to be compliant with GAAP requirements of those countries.
Beginning with the basics of IFRS, International Financial Reporting Standards (IFRS) are a set of accounting
standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard
for the preparation of public company financial statements. Approximately 120 nations and reporting jurisdictions
permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed
to IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.
Other countries, including Canada and Korea, are expected to transition to IFRS by 2011. Mexico will require
IFRS for all listed companies starting in 2012. Japan has introduced a roadmap for adoption that it will decide on
in 2012 (with a proposed adoption date of 2015 or 2016) and is permitting certain qualifying domestic companies
to apply IFRS from fiscal years ending on or after March 31, 2010. Still other countries have plans to converge
their national standards with IFRS.
Now evaluating the implications that lie ahead for India on its road to deployment of IFRS, here are a few nuances
that caught my eye.
Compliance with IFRS in India is restricted to „Public Entities‟ which include
those companies & entities listed on any stock exchange or have raised
money from the public, or have a substantial public interest, or public sector
companies. IFRS in India would cover the following public interest entities in
the first phase.
Listed companies: Banks, insurance companies, mutual funds, and financial
institutions
Turnover in preceding year > INR 1 billion
Borrowing in preceding year > INR 250 million
Holding or subsidiary of the above IFRS is not applicable to SME‟s as of
now.
Coming to the all-important question of When IFRS:
IFRS for public entities in India is applicable from 01/04/2011. The opening IFRS balance sheet at the date of
transition to IFRS – 01/04/2010, which is the start date for full comparative information presentation in IFRS.
Acknowledging the pain-points for India as an Economy:
IFRS is itself a moving target, with changes being introduced continually, refining the provisions and adding more
areas for disclosures. The IFRS implementation requires a multi‐disciplinary approach and is the responsibility of
the management. There are not many trained resources to effect the requisite change. There is a lack of awareness
and understanding of the requirements and implications of IFRS transition and compliance.
Communicating the change and managing the transition properly attains importance in this regard. IFRS requires
aligning business practices and policies to the reporting requirements (including retrospective ones). Training the
organisational components will be a huge task.
Primarily defined as the
bonds issued by an or-
ganization to get funds
that will be used for in-
frastructure in the Real
Estate development, they
further caught the eye.
The IFRS implementa-
tion requires a multi‐
disciplinary approach and
is the responsibility of the
management.
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NEWS @ IBS– ALL HAPPENINGS IN IBS HYDERABAD! - GAURAV MALIK Hope you have enjoyed reading through our latest issue, now let us take you through the latest happenings around
the campus.
PRAYAAS CLUB PRESENTS: “LE VILLE- BUILD YOUR DREAM CITY”
The other noticeable event this week was brought up by the Club Prayaas which was based on building
up your dream city. The event started off well with 25 teams participating in the number of „2‟.The
event was mainly brought up by marketing through distributing print outs of the head “Prayaas Times
“being an integral part of the club which described about the starting of the semester for the junior batch,
the interaction between senior and Junior batch through the fun mode of Fresher‟s and the signal of ex-
ams marking the end of the first semester. The event consisted of two main rounds. The first round
started with the allocation of certain budgets to the participants and with which the teams had to build all
the possible buildings that constitute the city like Hotels, Hospitals, Railway Stations, Amusement
Parks, Schools, Colleges, and Government Buildings Etc. The teams had to earn certain amount of reve-
nue after constructing these important buildings and the ratio of Revenue upon cost was calculated .The
teams with high revenue upon cost ratio percentages proceed to the next round and the teams with low-
est revenue upon cost ratios get eliminated. As a result the last 5 teams got eliminated and 20 teams pro-
ceeded to the next round. The second round saw a twist in the tale as certain conditions were put up as
constraints for the participating teams. The first and foremost condition was the occurrence of Floods in
the city and the buildings constructed near the rivers and lakes were all washed out. Now the next condi-
tion was the teams had to construct Railway Station, Airport-Both Domestic & International and 3-Star
and 5-Star Hotels and the third condition was that if they were having these three buildings earlier then
they just had to calculate the Revenue over Cost Ratio but if they were not having any of these then the
costs of constructing that building almost doubled. Hence after gone through all these conditions the
team having the highest Revenue over Cost Ratio won the event. The winners of the event will be de-
clared by the end of this week as per club sources.
MAVERICK PRESENTS “FRIDAY-THE 23RD
”
Maverick –The Marketing Club got an enviable chance to host the first event of this week. The event as
the name suggests was held on Friday-The 23rd of September. The theme of the event was horror and
that was evitable as the club had marketed through making graves, coffins, posters, fliers in the form of
Crusade Signs in the form of „+‟ and 4 teasers and was quite able to create a buzz among the crowd
throughout the week .The event started off with a bang with 40 teams participating in the number of
„3‟.The event consisted of the elimination round followed by three main rounds. The elimination round
boasted of completing a Sudoku and the word which was wrapped in the Jig-saw puzzle was “Maverick-
In-Ferno”. Then some of the teams had got eliminated and the rest of the teams proceeded further to the
main rounds. The first main round was called “The Garden of Four Senses” where the participants were
blind folded and they had to utilize their sensory organs to identify a certain product, and if they were
not able to do so, their team members were dead, and if they wanted them to be alive then some of the
minutes from their allotted time were deducted in the second round. The next round was a puzzle based
on the concept of Supply Chain Management and was called the “Mall Of Horror “which the partici-
pants had to solve. The last and the most important round were opened by the Guest of Honour “Mr. G S
K Srikant” Sir named “Dick the Dead” in which two dead products were located inside the coffins and
the participants had to search for it. This round was based on the concept of “Product Life Cycle “in
which the product reaches the stage of decline and is dead and outdated and is dubbed out from the mar-
ket. Overall it was a hush–hush affair with the Kings of the Night being-Ateev Singhal, Shivanchal Spar
and Jivesh Katyal.
THE IBS TIMES
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MARKET WATCH - SWATI VERMA
The past week witnessed a slumping trend in the world indices and currency valuations owing to the an-
nouncement made by the Federal Open Market Committee (FOMC) stating that there was a prevalence of a
significant downside risk to the world‟s largest economy. Various analysts have propounded that the US has
not recovered from the Sub-Prime crises and the after effects are still lingering in the system. Adding to the
concern were the signs of an apparent slowdown in China and Germany causing investors across, to with-
draw their funds from the extremely risky capital markets.
India too couldn‟t save itself from the ripple effect, with the BSE index; the Sensex, falling and closing at
16,162.06. At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell almost 5% in the weekly
trade. The Nifty closed 1.14 % down at 4,867.75 points Friday, after a 4.08% loss the previous day. Foreign
Institutional Investors (FIIs) sold shares worth net Rs 1234.60 Crore on Thursday, 22 September 2011,
compared with an inflow of Rs 333.70 Crore on Wednesday, 21 September 2011 due to the negative senti-
ment prevailing in the global arena. On Friday, Rupee closed at 49.8065 per dollar. The sharp depreciation in Rupees has been mainly attributed to rising de-
mand for dollars from Foreign Institutional Investors (FIIs) and oil companies.
India's food price index rose to 8.84 percent and the fuel price index climbed 13.96 percent .After the 12th hike in interest rates in the past 18 months, the RBI
Governor seems to have touched the interest cycle peak and believes that it would not be long before the reversing of interest rates begins. Among the sectoral
indices, Consumer Durables was the only one that managed some gains (up by 0.5%) while others presented a grim performance, especially the Capital Goods
and the Metals which recorded a drop of 7.3 per cent and 6 per cent, respectively.
The Movers & Shakers of the Week
A regulator for the Realty sector could soon be a reality thanks to Ms Kumari Selija, Minister for housing and Urban Property Alleviation. A regulator for the
sector has become a necessity especially in the wake of recent housing loan scams. India's power company National Thermal Power Corporation (NTPC) is
planning to make an investment of Rs 410 billion towards setting up thermal power plants. The company is planning to start these projects in Madhya Pradesh
and Chhattisgarh. BGR Energy is set for a deal with a Germany based firm, Flagsol for entering into the solar energy space. Flagsol is a subsidiary of Solar
Millennium. The deal will be a joint venture in which BGR will have a 60% stake. Also, Banks and Finance companies have been allowed to float Infrastruc-
ture Debt Funds (IDF) under the mutual fund route. These funds, which need to have a minimum net owned fund of Rs 300 Crore, will raise capital from long-
term investors.
Global Cues: Asian markets witnessed a stream of panic selling making Hong Kong's Hang Seng index close on 1.36 % down at 17,668.83 points on Friday after a drop of
almost 5% the previous day. Chinese Shanghai Composite index ended 0.41 % lower at 2,433.16 points Friday after slumping almost 3% on Thursday. The
Japanese Nikkei closed 2.07 % lower at 8,560.26 points. European as well as American markets slumped Wednesday and Thursday. The US markets regis-
tered biggest weekly loss since 2008. The Dow Jones Industrial Average slumped 6.4 % and the S&P 500 index lost 6.5 % in the weekly trade. Britain's
FTSE100 index closed 0.50 % higher at 5,066.81 points, the German DAX rose 0.63 % to 5,196.56 points and the French CAC 40 advanced 1.02 % higher at
2,810.11 points Friday.
SURGES %Change DOWNFALLS %Change
FINANCIAL TECH 7.4 JAI CORP 15.7
GRASIM INDUSTRIES 4.0 IVRCL LTD 14.9
ORACLE FIN. SERVICES 3.3 ABB 13.2
THE IBS TIMES
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MARKET WATCH
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Disclaimer- This newsletter is just a compilation of news from various sources. Thus, readers are expected to cross-check the facts before
relying upon them. Though much care has been taken to present the facts without error, still if errors creep in, necessary feed
back will be always welcomed. Editors will not be responsible for any undertakings. The newsletter is not meant for sale and
hence, no part of the newsletter should be used without the prior permission of the editorial team.
Sources- The Economics Times, The Hindu Business Line, Times of India, Business Standard, Financial Ex-press, Financial Times,
Business Week, Business World, The Economist, Wall Street Journal, Bloomberg, Reuters, Moneycontrol.com, Vccircle.com,
yahoofinance.com, Business Today, India Today, Investopedia.com, Wikipedia.com, DNA, The Deccan Chronicle, The Hindu,
The Tele-graph.
EDITORIAL TEAM-
AKSHAY AGRAWAL, ANKIT SHARMA, AVINASH ROY, AVLEEN KAUR, GAURAV MALIK, KRITIKA SETHI, LISA.T.SAMUEL, POOJA DALAL, SWATI VERMA.
BUSINESS JARGONS BY– AVLEEN KAUR
19 SEPTEMBER
2011
20 SEPTEMBER
2011
21
SEPTEMBER 2011
22
SEPTEMBER 2011
23
SEPTEMBER 2011
Sensex 16,745.35 17,099.28
17,065.15 16,361.15 16,162.06
Nifty 5,031.95 5,140.20
5,133.25
4,923.65
4,867.75
DJIA 11,401.01 11,408.66
11,124.84
10,733.83
10,771.48
HangSeng 18,917.95
19,014.80
18,824.17 17,911.95 17,668.83
FTSE100 5,259.56 5,363.71 5,288.41
5,041.61
5,066.81
Gold ($/oz.) 1781.90 1811.80 1775.80 1743.40 1657.20
Crude($/bl) 108.68 108.29 108.99 105.11 -
INR v/s USD 47.5750 48.3834 48.6498 48.8275 49.8065
INR v/s EURO 65.5817 66.1077 66.4556 66.8439 67.2836
Nikkei- Short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a
price-weighted index comprised of Japan's top 225 blue-chip companies on the Tokyo Stock Exchange.
THE IBS TIMES
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