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Sajid Javid MP Economic Secretary to the Treasury
he economic challenges we have faced since taking office have been formidable, but the tough decisions that we have made are restoring Britain’s stability and enabling us to better compete in the global race. These obstacles should not be underestimated, but neither should the action that has been taken to redress them. The budget deficit has been cut by one-third, the main and small profit rates of corporation tax are now the lowest in the G7, and the small business rate relief has been doubled. Unnecessary or obsolete regulation is being scrapped or overhauled as part of the Red Tape Challenge, and the ‘One In, Two Out’ regime means that not only is there no net increase in the cost of regulations, but also that the cost of any new regulation on firms must be offset by red tape reductions that will save twice as much. Initiatives such as the Enterprise Finance Guarantee, the Funding for Lending Scheme, and the Business Finance Partnership, combined with establishing a new business bank to provide long-term help for small businesses and encouraging angel investors and peer-to-peer lending, all mean that we are helping businesses to access the finance that they need in order to thrive and expand. Taken together, these measures provide robust support to the businessmen, entrepreneurs, and risk-takers who are propelling economic growth through their innovation and sheer hard work. In this drive to create jobs and generate wealth, Britain’s Asian communities are indispensible. The desire to succeed, the presence of a supportive family, and the sense of a wider responsibility beyond personal gain, are some of the key characteristics that underpin success in all communities throughout our nation. The determination of these communities to contribute to the society that has offered them new opportunities is matched by this Government’s own determination to ensure that such hard work is always rewarded. The only meaningful economic recovery – and the only one that can lead to sustainable growth and renewed prosperity – is a private-sector led recovery. I know that Asian Voice will fulfil its role in promoting and strengthening the Asian business sector, and I am delighted to introduce this year’s Finance, Business and Insurance edition.
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Dharmasya Moolam Arthah धर्मस्य मुलम् अर्थ: “Economic prosperity is the basis of sustaining civilisation” - Chanakya (Kautilya's Arthashastra) early 2500 years ago Chanakya was one of the most renowned 'Management Guru' (in today's terms) whose guidance, inspiration to King Chandragupta formed 'Bharatvarsh' (the undivided India- including Afghanistan to the West and beyond present day boundaries to the East). Chandragupta Maurya's creation lasted several hundred years and was by common consent a glorious period of India. Today we live in a global economic environment and the basics are loosely termed as 'a free market economy'. Nevertheless free market is not free for all or many. It has its own values and processes. Chanakya defined 'dharma' is not just as a religious ritual but a concept of human endeavour based on values. He advised that each one of us should have the following 5 as our guidelines: 1. Dheya: Ambition, aim, target 2. Dhairya: Skill of operation 3. Dhagash: Drive 4. Dhiraj: Patience 5. Dharma: Value based behaviour
Recently we have been told about the 1000 richest people of Britain. Around 65 of them are of Asian origin (6.5%)- Asians are about 5% of the UK population out of 62 million. A very good start, though I strongly believe that the best is yet to come. The reasons are very clear. Asians irrespective of their faith and traditions especially from South Asia are after all the offsprings of that generation and the pursuit of economic prosperity is ingrained within their DNA. Ambition, hardwork, education, perseverance, thrift are some of the very significant driving forces. Asians have been doing much better here in the UK than their compatriots in their ancestral homes. Needless to say Britain is indeed a 'Great' Britain. It has its values and traditions of scope for progress, appropriate system of operations, tolerance, fairness and compassion. The synergy between our 'new home' and 'old values' has a brilliant future. The 1000 richest individuals are also role models for nearly 3million other Asians. Our economic participation and pursuit of excellence is expanding its horizon from traditional business and commerce to ever enlarging new sectors. Jews everywhere are recognised for their brilliance in the achievement of all-around success and enormous generosity in supporting worth while human service activities. We Asians and especially Indians
sometimes claim that we are following the footsteps of the Jews. It is true to a very large extend. Isn't it time we get inspired by the Jewish philanthropy? Sunday Times or such rich lists have a category of 'Giving List'. People have noticed that Asians are not yet actively involved in philanthropy. It is possible that more and more successful entrepreneurs will realise their responsibility towards social uplifting. In India it has started in a big way by likes of Ratan Tata, Azim Premji, Nita Ambani, Rajashree Birla, Kiran MazumdarShaw and others. Asian Business Publications Limited (ABPL) has been publishing the Finance, Banking and Insurance (FBI) magazine and organising the launch at the House of Commons for the last 12 years. This year our Chief Guest is MP Sajid Javid, the Economic Secretary to the Treasury. An MP from the Bromsgrove constituency, he became the Economic Secretary to the Treasury, during the cabinet reshuffle of PM David Cameron in 2012. Previous years we have had eminent personalities like Chuka Umunna, Danny Alexander, Stephen Timms, Stephen Pound and Yvette Cooper as Chief Guests. Rt Hon Keith Vaz, MP the most senior serving Asian MP and Chair of the Home Affairs Committee and those 200 guests who will grace the Members Dining Room on 2nd May- we welcome you. Presence of people like you illustrates the variety and vibrancy of our budding entrepreneurs and their growing prominence in all walks of life. This 13th edition of the FBI magazine is our modest effort to present some very informative articles, which will help you to save more, invest better and perhaps help to spread our prosperity beyond the shores of this country. L George, Chief of Operations, Rupanjana Dutta, Associate Editor, Asian Voice and their team have worked very diligently with determination. I am very happy to acknowledge the contributions of ABPL colleagues in the UK and Ahmedabad to make this magazine a success. We are also grateful to the sponsors and the advertisers. Warm Regards CB Patel Publisher/Editor Asian Voice & Gujarat Samachar
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7-9-Alpesh Patel_A4 Temp 29/04/2013 15:07 Page 7
Around the World In 80 Trades t’s an exclusive for the FBI Issue I’d like to offer in this article. Because in June Rothschild’s have asked me to address their annual meet in Luxembourg to their wealthiest and most powerful families. In past years when I’ve attended, I’ve been the only brown face so am pleased to speak on the issue of global investing – and indeed here first!
SE Asia Beyond the economies of Brazil, Russia, China, India come the next 11. And of these some like Indonesia, Malaysia, Singapore and even Vietnam have been doing rather well. Given how much they benefit from links to China, India, Australia, this is set to continue and the opportunities and excitement of benefiting from investing in those economies is for smart money much more than in the BRICS. The Philippines market is up 73% - that is 3 times India – since January last year. Turkey is up by the same amount! In the strategy section below I explain in more detail how to do it simply, cheaply, online and with as little risk as possible.
Alpesh Patel founding Principal Praefinium Partners (private Equity) benefited from being close to the USA. Even Mexico is not a sure thing. So I remain to be convinced about LatAm. I prefer the US.
USA Bet on America – always – and that means the Dow. The world’s largest economy. Fighters for economic growth. The Dow is at an all-time high. Yes it is. Above 2007 peaks. The strategy section tells you how to buy a Dow ‘ETF’.
EU Not expected by many to do well – which is why it’s stocks will rise – because there is only potential to surprise and only surprises move share prices. It is that simply. The best strategies I explain in the strategy section below.
India The Nifty is up 25% since January 2012 to April 2013 – some 15 months. Not bad. And in the strategy section below I discuss how to get exposure to a region as a whole. For India you are in or out. We all want to be in. So then the issue is how? Again in the strategy section I explain how so you are not overexposed to risk.
China As I regularly point out on Reuters TV, do not be fooled by any slow down in Chinese growth. This is wholly intentional by the Chinese because they want to control inflation because high inflation can cause social unrest and in an economy like the Chinese one that is the worst situation for the Politburo. China is will remain an engine for growth but that does not mean all investments in China are bound to succeed anymore than all investments in India are bound to succeed. Again – our strategy is key – see below on that.
Japan The Nikkei is up 60% since last January. So is the turning point. Should we be at long last looking at Japan. To hit all time highs like the Dow in America you still would gain 50% by investing in the Index. I think this is a turning point for the Japanese. They are putting everything into turning their economy around. And the Chinese competition and threat is motivating them like never before.
Latin America Brazil has over promised – bit like India and the rest of the region is too volatile or too small. They never
UK The biggest problem about investing in the UK is you are already exposed to it from your work and your livelihood. Buy non-UK stocks to diversify – even though many British companies are global I know.
Middle East The FTSE Nasdaq Dubai index is up 66% since January 2012. Following their property collapse – which remains collapsed and will take years to resolve – and their huge debts and desire simply to walk away from those debts (learnt a lot from the West they did) the stocks have nevertheless done well. Dubai remains the most focussed upon country, despite Qatar and Saudi trying to catch up – but really these markets are strictly for locals.
Stocks 2013 will be a good year for stocks. It already is. Since January 2012, the best performers have been household stocks and home builders. It is usually what you don’t notice that does the best. This will continue.
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Stocks will do well overall because expectations are low and kept being exceeded – that is what makes share prices rise. Expectations will remain low – thanks to the media’s pessimism.
Gold Gold does best in a banking crisis. During banking crisis it generates over 16% returns per annum. Outside those it barely does 2-3% per annum. We are no longer considered to be in a banking crisis. So although there are many reasons to buy gold, such as Korean war, inflation, Indian demand, and so on, for the moment I expect the price to continue to fall. But, I be-warned, a banking crisis or sharp spike in inflation or fall in dollar and Gold is a buy again. For now, if you are Indian, have a cheap wedding.
favourite of mine and many traders is the telecoms sector, and in particular the telecoms equipment and wireless telephony industries. ADRs allow me to take advantage of spectacular growth affecting the whole industry by not being restricted to only UK companies in the field.
Strategies The best strategy for owning global stocks is through ‘ADRs’ – such as Infosys or Tata Motors. As the internet allows us a window on global finance through the browser, I want to own more foreign stocks. So how do we trade them? Why should we miss out on owning some worldbeating stocks producing exceptional returns just because we do not have the often ten of thousands of pounds needed for a private client account with a major investment bank that would allow us to access global markets? Online trading allows us to trade foreign stocks cheaply, efficiently, quickly and easily through American Depository Receipts (ADRs). www.adr.com lists all ADRs including Indian ones! ADRs are dollar denominated US securities backed by and related to the underlying company stock - which may for instance be UK listed shares. The price of the ADR and the underlying stock will generally move in tandem. Of course in place of trading ADRs we could always open multiple foreign online trading accounts with different brokers, holding them in different currencies - facing conversion costs and of-course learn the language of each country since their e-broking sites often are not in English. We can also face the problems of double taxation on our gains in those companies. The efficient solution then becomes ADRs which avoids all of these difficulties. The reasons for trading in foreign stocks are compelling. First, other global regions may be experiencing superior growth rates to our own economy. Trading their stocks could significantly improve our performance. When the recession comes we may be able to avoid a downturn in our own performance by tapping into the economic cycle of a country or region going through a growth phase of its economic cycle. As one Salomon Smith Barney analyst commented about Latin America for instance, "The region enjoys unique characteristics that could turn it into the hottest internet market in the world." Now, through ADRs I can act and profit from that analysis. Second, I can have a more diversified portfolio exposed to a whole industry group I may find exciting but which is global rather than local. For instance a
The third reason I find ADRs a compelling proposition is that the choice provides me with a wider selection of companies from which to choose the very best. The wider the choice, then the greater the chance I will pick winners assuming my research remains diligent. Further advantages of trading ADRs is that they are traded like any other US security. You are only holding dollars, not numerous other currencies. You do not have stamp duty costs and pay US online trading commissions which can be far lower than, say, for UK stocks. Of course with the ADR you have the currency risk of holding dollars and the conversion costs involved. But if you intend to put away for several months a pool of money for trading in dollar stocks and don't intend to convert back and forth those costs and risks can be minimised. The practicalities of trading ADRs are straightforward. It is just like trading any US security. You would use a US e-broking account as you would for trading in say, Microsoft or Intel. Which online broker should you use for trading ADRs? The same you use for your US stock trading – or speak to your bank – such as Barclays or HSBC. If you want to be exposed not to one stock, but a whole country , then the best method is ETFs or Exchange Traded Funds. Again your broker can assist but these will track a country’s index like the Nifty or the Dow. So there you do not have risk of being in a stock that may plummet – you are instantly diversified instead. Your broker will offer ETFs in all major countries. That is how to buy and what to buy. But what is the best strategy for ‘when’ to buy? One popular strategy is cost averaging. You simply buy a proportion every month of the total amount you intend to buy in a stock. By averaging the cost this way across time, you avoid buying at the peak or the fruitless task of trying to time the market. Visit www.alpeshpatel.com for free webinars on trading.
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Diversification Through A Portfolio of Stocks hilst individual stock picking can be fun and financially rewarding, it is asset allocation that has by the far the most significant impact on performance. Asset allocation, or the percentage one invests in equities, fixed income (bonds), derivatives and property will determine 90.9% of performance as opposed to individual security selection of just 9.1%, according to Professor William F. Sharpe, portfolio theorist and Nobel prize winner. However, fundamentally the key to any successful portfolio is diversification across traditional stocks including blue-chips such as companies quoted on the FTSE-100 index, midcaps and small caps (e.g. Alternative Investment Market (AIM) of the London Stock Exchange (LSE)) and equities across international markets. There are many types of assets that can be included in an asset allocation strategy aside from plain equities and bonds. They include: Commodities (e.g. precious metals and energy); Commercial/residential real estate; Cash and cash equivalents; Derivatives (futures and options, Contracts For Difference (CFDs)); and Foreign currency products. Probably the biggest mistake any investor can make is to fail to diversify their portfolio. It would be extremely foolish to invest all your money in one investment. Whilst it may be tempting to put your life savings on a ‘hot’ share recommendation, such a move could prove extremely costly. Therefore, it is sensible to build a diversified portfolio of stocks and other assets. For many of these assets Exchange Traded Funds (ETFs) offer a clean and simple way to invest, whereby one effectively gains exposure to a representation of an index, industrial sector or market. ETFs such as those offered by iShares by BlackRock (see: http://uk.ishares.com/en/rc/) can be bought and sold on exchanges like the LSE and are quoted throughout the trading day. Specifically, for UK investors buying/selling an ETF on say the French CAC-40 index or the US biotechnology sector, the bid/offer (i.e. buying/selling price) spread is quoted in Sterling, thus avoiding any currency conversion and in contrast to trading individual shares quoted overseas. Diversification is not simply a matter of spreading your money around into different companies. Investors need to diversify into equities in different industrial sectors - from Autos to Utilities - and investment funds into different types of companies. Bar exceptions, investing
Roger Aitken, Financial Journalist purely in a range of UK retail stocks in the past few years would have proved woeful. Importantly it should be remembered that the investment managers one chooses to invest through do not always mirror the exact weightings of benchmark indices like the FTSE 100. For example, a fund offered by UK fund manager Schroders focussing on bluechips may invest the bulk of the portfolio in stocks like BP, Barclays and Glaxo Smithkline within the FTSE 100, but also leave discretion for investing in a slightly wider universe beyond the top benchmark index. In practical terms had one invested £100,000 equally across ten FTSE 100 stocks during the first quarter of 2012 when the benchmark was trading at around 5,200 points (versus 6,286.59 on 19 April 2013), the increase would have been positively scintillating. Whilst the gain on this index over this period would be c.1,000 points - just shy of 20% - the gain on the ten individual FTSE 100 stocks might likely be in excess of that depending on exact stock selection. (Notably share prices for some UK quoted banks like Barclays have gained far more over the same period). However, the same £100,000 invested in that Schroders blue-chip fund could be lagging your investment return in your chosen ten single stocks due to the fund manager’s orientation to invest across the FTSE 100 universe. Not all the index constituents will have performed equally and the composition of the index itself is skewed as around 60% of its entire market capitalisation is comprised of just a handful of companies - heavily weighted towards banking and oil stocks. The precise manner in which investors structure their investment portfolio through stocks and how much they commit will be depend on their age and risk tolerance. That said, it is prudent to build several portfolios consisting of individual equities ranging from companies in the FTSE 100 through to AIM, as well as gaining international index exposure and having some exposure to managed funds from specialist fund managers. Spread the risk and enjoy the return. Roger Aitken is a freelance financial journalist and a former FT staffer who writes on investments, exchanges and trading technology.
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Welfare changes and the UK Economy John Chown Chown Dewhurst LLP ’ve been asked to comment on the broader economic effects of cuts in UK welfare expenditure. This is a simple question with a rather complicated answer, and we will first need some background. When the Coalition took office, it inherited from its predecessors a high-level of public expenditure and public debt, and the economy in recession as a result of a banking crisis. This, arguably, had its main roots in the United States although the banking excesses were essentially a worldwide phenomenon. Government expenditure in the immediate post-war period was about 36% of GDP, rising to 50% in 1972 and falling back to 36% by 1999. Then during a period of rising GDP, it rose in both absolute and percentage terms to about, 41% by the start of the financial crisis. After that, the absolute growth in government expenditure continued, but a declining GDP meant that the percentage rose to 48%. Debt which had comfortably fallen to around 40% of GDP by the time of Blair’s election, rose to about 70%, is now76% predicted to rise to 85.6% by 2017, by which time the annual deficit is hoped to have disappeared. Faced with these two problems, the Coalition had to take urgent steps, first to close the budget deficit (and make a start at reducing the outstanding debt) and second to stimulate the economy - from their point of view in that order. Neo-Keynesians (and the IMF) would have it the other way round but I suggest that the two are not necessarily incompatible. They are in fact pumping money into the economy but not always efficiently. In this case, though, they were taking money out of the economy (other measures were putting more money in people’s pockets). Various figures have been bandied about but, whatever they are, reducing the income of poor people would result in virtually 100% reduction in what they spend and will directly have a negative effect on the economy. That sounds bad, but is it? We have to see it in an overall context and there are two main factors. First, the money saved can be, and as noted is being, used in other ways even if only to pay down debt. Apart from that, it should substantially, but not completely, neutralise some of the apparent loss of spending in the economy. The Government measures, including tax reductions, will have the opposite effect and the overall effect of the package will be positive. The more important point, though, is the incentive effect of the changes. If people, whether high rate tax-
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payers or benefit recipients, are given the wrong incentives, they cannot be blamed for behaving in the wrong way. There is substantial evidence suggesting that many welfare beneficiaries are capable of work, but if they find themselves better off on benefits that is the option they will take. The government is clearly trying to modify the incentives to get as many people back to work as possible. The economic benefits of converting somebody from a benefit recipient to someone in useful employment (and at best a taxpayer) is many times more effective, both in reducing the deficit and increasing spending power in (and hence like the growth of) the economy, the stated aims of the government. Indeed, the Minister has suggested that this is already happening. The ceiling of benefits (designed to ensure that benefit recipients were not better off than people in work) was originally forecast to affect 28,000 people but the estimate has now been reduced to 21,000 because (he hopes and believes) that the rest have realised the sense of finding a job. Is it well targeted? We can only hope it is. Any policy change, whether on tax or on Social Security payments has to be judged by a cost/benefit analysis. If we are to encourage people back into work, the jobs have to be there. Another aim of the Government is to give incentives to business – but I am not so satisfied that these stand up to a cost-benefit analysis. National Insurance and regulatory exemptions are very important. The very generous tax relief of the Enterprise Investment Scheme is splendid, but fairly costly in terms of tax relief. It has been improved to help middle sized business but the regulatory and other problems facing a sole trader who wishes to take on an employee are still rather daunting. With the help of the Centre for Policy Studies, we are working on a proposal to produce a much simpler and more effective approach. John Chown (Chown Dewhurst LLP) started as monetary and financial markets economist but made his career and reputation in international taxation. A cofounder of the Institute for Fiscal Studies he has advised many) transitional and emerging countries on tax and pensions policy in the development of the capital markets. Apart from many books and articles on taxation, he published `A History of Monetary Unions’ in 2004, and has recently been writing extensively on this and other aspects of the financial crisis. For further information visit www.chowndewhurst.com
13-Deepak Money_A4 Temp 29/04/2013 15:10 Page 13
Making money work for you ash for private equity is raised from investors, and can be used to fund new technologies, expand working capital within an owned company, to buy and to trade. Many of those in are institutional investors who can commit large sums of money for long periods of time. Private equity funds consist of money that has been collected from individuals who are usually wealthy. All these people pool their money and let a private equity firm manage it. There are hundreds of such firms around. The manager will sometimes take a 2% management fee and 20% of the profits the fund generates. Investors place their money in private equity firms in the hope of creating greater returns on their investment than they might get in the stock market, or in bonds, or other investments. Since PE investments tend to be riskier than other types, so the return on the investment should be higher. PE firms invest, as I have said, in all kinds of things. Sometimes they invest in â€œmiddle marketâ€? businesses. These might be companies that have been around for a while doing business, have started to make a profit, but now need large money injections to take them to a higher stage.
So they are often happy to borrow money from PE firms at comparatively high interest rates -- maybe more than 12% - and sometimes give up some an ownership stake in their companies in return. Other PE firms might identify a company in financial trouble. The business may be using its own cash to survive even though it is not yet not making a profit. A PE firm could make an investment that gives them some control over the company, and allows them to begin to help the company. The private equity firm hopes to turn the company around and make it more successful. Now that private equity firms are under closer scrutiny than ever before, many areas to do with the topic are being examined closely in the public domain.
Deepak Kuntawala Chairman-Founder DVK Group Ltd So in the west, with continued economic vulnerability and a volatile market affecting the investment environment, the future of private equity looks interesting. But the private equity industry continues to grow. Though growth can be uneven, the sector continues to attract fresh capital. Investors are being very prudent about where they put their money. A few people are struggling to raise cash, but the new opportunities lie in the ability to key into emerging areas of traditional industries like gas and oil. You need to make very sure that you meet all the rules and regulations when you are working in private equity. It is just not worth cutting corners. It is important, even if private equity advisers have not had that much experience in discussing operations procedures with regulators, that they find the support to help them to do so. I am sure that some private equity consultants will improve their compliance tactics and plans by spending money on people and infrastructure. They may well strengthen their control systems, spend more on training their teams, and creating important strategies for compliance. Those who do not have the internal capability to perform will find service providers who can promptly manage the ability to meet compliance procedures. When considering private equity or any other area of the financial world, sometimes our mindset is focused solely on profit and return; how can we work or invest in a way that gives us a maximum return? I choose to look at our world from another perspective; how can I give, what happens if I forget about my overheads, my bills, and start to think about money and the financial world from the aspect of abundance? What happens when I focus exclusively on giving, not getting? In my experience, the minute we start thinking that way, of the other person, the other company, rather than ourselves, then money starts flowing towards us. When we free ourselves from the shackles of commerce and profit, the universe notes our liberation and encourages its own laws to take over. Try it for yourself and you could be very pleasantly surprised! For further information visit www.dvk-global.com Asian Voice & Gujarat Samachar
14-Vedanta half _A4 Temp 29/04/2013 16:08 Page 14
Importance of Professional advice on Interest Rate Swap Mis-Selling here has been a lot of interest in the Media regarding interest rate swap mis-selling. Unfortunately, this has led to a raft of claims management companies, solicitors and even accountants trying to ‘advise’ clients. It is essential more than ever to obtain credible, FCA authorised advice in this very complicated matter, because each case is wholly unique. It is a very welcome development that the FCA (the new name for the FSA) has required the banks to begin a review process to review the sales of these products to SMEs. However, the finding that ‘90% of the initial cases were found to be mis-sold’ should not provide false comfort to SMEs. The FCA and the Banks have acknowledged that this was not a representative sample of all SMEs, which means that SMEs still need to fight hard to claim the maximum possible amount of redress from the Bank. There are dozens of small loopholes Banks can use to avoid paying redress. The review process also now includes consequential loss, whereby the business can claim for detrimental business effects (e.g. not being able to buy / expand a care home or forced sale of property). It is important to note that under the FCA scheme it is the Bank who potentially mis-sold the swap to the SME, that is now having to decide if it did mis-sell, and if so what the redress should be! Therefore, the SME must be very well prepared. In the last 12 months alone, we have advised the FSA (now the FCA), Government Ministers (including briefing notes for the leaders of the two main
Asian Voice & Gujarat Samachar
Political Parties), Parliament, and have appeared on Sky News, BBC News, Channel 4, The Times, Bloomberg, Property Week, The Telegraph, BBC Radio 4, BBC Radio 5 and more. We were the only Derivatives Experts in the UK to be asked to give evidence to the Parliamentary Commission on Banking Abhishek Sachdev Standards. We have grown our team and expanded by adding high-profile consultants to our team. Martin Berkeley has over 15 years financial experience at both Barclays and HSBC, as well as lecturing in Finance & Ethics in the USA. Mayad Rassam (CFA) has previously negotiated and structured debt on commercial and residential real estate transactions totalling in excess of £6bn. All of the Vedanta Hedging team have acted as Expert Witnesses in interest rate swap mis-selling court cases. It is important to note that legal claims that have had credible advice (a derivative expert, a credible solicitor and barrister) are being settled by Banks. Weak or poorly argued legal claims will be allowed to go to Court by the Banks, as two recent victories by RBS have shown. Vedanta Hedging is fully authorised by the Financial Conduct Authority to advise on Derivatives.
15-Gold Mike temple_A4 Temp 29/04/2013 15:11 Page 15
Gold - the most desirable of all precious metals
Mike Temple Gold Investments Limited
ike most commodities, the price of gold is driven by supply and demand as well as speculation. However, given the substantial quantity of gold stored above-ground compared with the annual production, the price of gold is affected more by changes in sentiment rather than changes in annual production. As gold continues to be regarded as a natural hedge against inflation, currency fluctuations and instability in the financial system, sentiment on any of these issues has a major affect on the gold bullion price. Gold has long been considered the most desirable of precious metals, and its value has been used as the â€œgold standardâ€? for many currencies. It is a symbol for purity, value, royalty, and in particular, roles that combine these properties. The first gold were struck in Lydia around 700 BC. The talent gold coin in use during the periods of Grecian history both before and during the time of the life of Homer weighed between 8.42 and 8.75 grams From using silver, European economies re-established the minting of gold as coinage during the thirteenth and fourteenth centuries. However, production has not grown in relation to the world's economies and today, gold mining output is actually declining. At the beginning of World War I the nations at war changed to a fractional gold standard, inflating their currencies to finance the war effort. After World War II gold was replaced by a system of convertible currency following the Bretton Woods system. Both the Gold standards and the convertibility of currencies to gold have been abandoned by world governments, being replaced by their national currency instead. Switzerland was the last country to tie its currency to gold; it backed 40% of its value until 1999 when the Swiss joined the International Monetary Fund The price of gold remained remarkably stable for long periods of time. For example, Sir Isaac Newton, as master of the U.K.Mint, set the gold price at 3.17s. 10d. per troy ounce in 1717, and it remained effectively the same for two hundred years until 1914. The only exception was during the Napoleonic wars from 1797 to 1821 In 1972, the price was raised to $38 and then to $42.22 in 1973. A two-tiered pricing system was created in 1968, and the market price for gold has been free to fluctuate since then as the table shows.
Modern bullion coins allow investors to own investment grade gold, as coins are at a small premium to the spot price of gold as quoted on the markets. The price of bullion coins and bars is determined primarily by the gold price and handling costs. Bars are available in various sizes such as the 1 kilogram (32 oz), the1oz bar, the 10oz bar, the 5g bar, the 10g bar, the 20g bar, the 50g bar and the 100 g bar. Coins are available in 22ct and 24ct purity. Among the 22ct bullion coins available for investment are the American Gold Eagle, the South African Krugerrand, first released in 1967, the Britannia, and the British gold sovereign, as well as the half sovereign. The Canadian Gold Maple Leaf coin has a purity of 99.99% as does the Australian Nugget, both being 24k. Most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz & 1oz form. One ounce gold bullion coins such as Krugerrands or Britannias, as well as the smaller coin, the British Sovereign, are by far the most popular for our clients. Both small investors and institutions are attracted to owning legal tender bullion coins and recognise the advantages of the divisibility afforded by them. Some choose to take possession of their coins and others have us store them on their behalf in our bank vaults in the City. Buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.The British coins, the Sovereign and the Britannia, are also completely free of Capital Gains Tax. UK citizens can, as of April 2006, invest in gold bullion through their SIPPs. SIPPs are designed for people who want to manage their own pension funds by investing in asset classes of their choice. SIPP Investments are topped up in the form of tax relief, whereby individuals can claim up to 40% back depending on their income tax band. Investors should consult their tax advisors on this matter before proceeding. Modern bullion coins allow investors to own investment grade gold in a convenient form and to buy and sell them at prices relatively close to spot price of gold. For further information visit www.goldinvestments.co.uk Asian Voice & Gujarat Samachar
16-Advert_A4 Temp 29/04/2013 16:15 Page 16
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17-Ben Kumar_A4 Temp 29/04/2013 15:12 Page 17
When is the right time to sell bonds? onds, particularly government issued bonds, have enjoyed a nearly four-decade long bull market. Since the high inflation of the mid-seventies, yields have been in a steady, and fairly steep, decline. In 1974, as McDonalds was opening its first UK restaurant and inflation hit 17.2%, UK 10 year government bonds also peaked, with a yield above 17%. Six years later, the yield had fallen to 12% and the world lost its first Beatle, John Lennon. By the time the pound coin was introduced in 1983, the 10 year paid just under 10%, where it lingered for a whole decade before resuming its decline. Between 1993 and 2003 the yield halved to 5%, and remained steady until the Global Financial Crisis prompted central bank intervention on an unprecedented scale. Investing at almost any point in that 35-odd years would have generated a positive return today.
Source: Thomson Reuters/7IM
So (as the chart above demonstrates) with yields currently around 1.75%, well below their historical average of 4.8%, and commentators announcing that the age of bonds is over, should a logical investor be selling bonds as fast as possible? Not necessarily. First, selling all bond holdings on the advice of others would be extremely rash - now is not the first time that a turning point in the fixed income market has been called by various investors and analysts. Typing “death of the bond bull market” into Google gets around 2.5 million hits, and a couple of minutes scrolling through the entries will reveal that articles using that exact phrase have been floating around for a while - there are pieces dating from 2001, 2005, 2006, 2010, 2011 and 2012 all within the first fifty search results. Bill Gross, the manager of one of the world’s largest bond funds, sold all of his US government bond holdings at the beginning of 2011 stating that there was very little return left to go for. 10 year US Treasuries returned 16% that year. Acting on the advice of so-called “experts”,
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Ben Kumar Research Analyst and even real, proven experts such as Mr Gross, is not a sensible investment process. Secondly, looking at the fundamentals underlying current historic lows in bond yields, there seems to be no immediate likelihood of a dramatic spike upwards. The central banks of the US, the UK and Japan are printing money on a huge scale, and the bulk of it is being spent on their own nation’s government bonds. As long as it continues, this buying pressure will keep the price of quality government debt high, and yields correspondingly low. In addition to central banks, there are some other large players in the bond market, largely insurance companies and pension funds, whose investment guidelines effectively enforce the continued purchases of bonds. Another point to consider: not all bonds are created equal. Although US, UK and Japanese government bonds are among the largest and most liquid markets, there are other areas of fixed income which could appeal. Too large a subject to discuss fully here, it is worth pointing out that investment grade corporate bonds, high yield corporate bonds and Emerging Markets government debt all have different characteristics (both positive and negative) that an investor should take account of. Lastly, bonds should not be considered in isolation. A well constructed long term investment portfolio should include a variety of asset classes, of which fixed income will form a greater or lesser part depending on the goals and situation of the individual. Many investors are looking to try and match long term liabilities in a predictable manner, and it is here that bond allocations are still very important. Once a bond is purchased, if it is held to maturity, the future income is both fixed and predictable. Allocating to fixed income allows investors to preserve some of their capital at a given rate of return and use the remainder of their cash to take more risk and potentially generate higher returns as needed. There is no objectively correct time to sell bonds – for one investor, the time may be now, for another it may never come. In general, fixed income assets will always have a role to play as part of a diversified portfolio, and that is unlikely to change. For further information visit www.7im.co.uk
Asian Voice & Gujarat Samachar - 2013
18-Sanjeev Patel_A4 Temp 29/04/2013 15:12 Page 18
What is Outsourcing? y Outsourcing is the process of contracting out a part of a company’s operations to an independent third party. It can take many forms and include manufacturing, accounting and sales processes. Multiple companies outsource in the twenty-first century. Most large and many smaller companies outsource some element of their processes; from a multinational outsourcing bottling & packing of its products, to an independent retailer having others design and manage their website. Outsourcing is possible anywhere, including locally, though it is commonly presumed to beoffshore. The main centres for overseas outsourcing are India and the Philippines but South Africa and Poland are also becoming alternatives. Outsourcing does not just save cost. The key reason is flexibility, both in terms of pricing and speed of change. Many outsourced processes are priced according to the volume of work carried out - ie companies pay a variable cost. If a company has to employ people in-house for such tasks, it has to pay a fixed cost (salaries and overheads). With outsourcing, the cost is related to the volume of work. Benefits of this flexibility are that the price for an overseas third party managing the process is less than at home and they are likely to have considerable expertise. The company saves on maintaining a specific, perhaps costly, skill set and the outsourced model permits rapid changes in output as the responsibility for staff changes passes to the outsourced provider. Known costs also help with internal budgeting. When outsourcing their processes, companies can focus on their core competences or whatever defines their competitive edge (often technological or operational excellence). Outsourcing also enables firms to be more entrepreneurial, without bureaucratic limitations involving processes far removed from its core business strength. Outsourcing demand has grown over the past decade. The relentless quest for cost reduction in the recent economic malaise has actually increased demand. Technological advances like high-speed broadband and improved telecommunications enable more services to be outsourced. This industrial change is expected to be permanent with companies outsourcing, even as the economy improves. Once companies get used to good quality processes and the lower costs, it is difficult to revert. For savvy SMEs, there are an increasing number of ways to outsource business processes and survive a
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Sanjeev Patel, Managing Director, CNG Business Services tough economy. Firms can outsource elements of their sales & lead generation, data processing, data entry, accounts, customer services, research, marketing, web presence, IT and training to dedicated professionals, at far lower costs and possibly to a higher standard. Even the set-up cost for shifting services isn’t that extortionate. Shrewd businesses outsource several elements of their processes, thereby concentrating on whatever they do best. This has led to nimble organisations operating within tight domestic head-counts and punching above their weight. And an organisation’s clients are none the wiser to who provides the service as many companies permit white labelling of their services so the provider is invisible. The customer services function is often an accessible first step in outsourcing. This is a telephone or web based service so the physical location of the service provider doesn’t matter. The customer services representative can access accounts online, usually by having direct access to the company’s customer management software, understand the issue being faced and then resolve it or escalate to more technical teams as required. Larger overseas outsourcing providers typically offer inexpensive 24/7 service. This means calls can be received from customers in the evening, when they are home from work. This results in greater customer loyalty and satisfaction. Overseas call centres also have the advantage of providing multi-lingual support which is a benefit for brands targeting specific ethnic minority clients. However, outsourcing is not a panacea suiting all companies. Before outsourcing, companies must consider how those interacting with the provider are affected and whether it makes a material difference to a business’s standards. For technical services, the outsourcing provider's location doesn’t make a difference. However, outsourcing customer services to a distant country for a domestic luxury goods brand would be unsuitable. It would not match customer expectations of a premium, local service. There is no one size fits all solution. Outsourcing works for companies but they must consider their core business strength and what elements of their business can successfully and logically be provided by a third party supplier. For further information visit www.cngbs.com
19-John Cumming_A4 Temp 29/04/2013 15:13 Page 19
Not being tax compliant..... the consequences t would be foolish not to think that some individuals continue to evade tax. Whilst, the majority understand the consequences, one can only inform and educate the legal implications of tax evasion. This year’s budget brought some eye-catching news. The Chancellor, George Osborne, revealed a tranche of measures to make the UK an attractive place for genuine business activity. However, on the other hand H M Revenue & Customs (HMRC) has announced that it will increase the number of tax cases that they will consider for criminal prosecution. The budget sets out to enact the General Anti-Avoidance Rule (GAAR) which would aid HMRC in tackling artificial and abusive tax avoidance schemes. If you happen to lie on the boundary of right and wrong, GAAR will close the gap between tax evasion, tax avoidance and aggressive tax planning. Whether there is a multinational company or one is a high net worth individual, it is important to consider HMRC’s modus operandi if one chooses to engage in such an activity so as to result in a criminal tax investigation. HMRC are aggressive in their enforcement powers if you happen to be tax delinquent. A number of recent tax cases by The Crown Prosecution Service have raised awareness across the fiscal spectrum. If HMRC have suspicions, a warrant would need to be obtained before conducting a raid on one’s premises. Whilst it is in their power to seize documents and interrogate computers, an officer has the ability to arrest, without a warrant, on judicial grounds if they suspect the offender is guilty. So what happens if they arrest you? This could have serious repercussions as your details are entered into the nationwide police database. If this outcome does not make you flinch, then you must not forget that this will affect you in many ways e.g. this could hinder you travelling abroad in the immediate future. HMRC will review the seized documents found at the premises in addition to any other evidence that they may have and conclude whether you can be charged. If you do not face immediate charges, you can be detained for 24 hours of your arrival into the police station without charge. Would you need a solicitor? The law states that it is your right to obtain legal advice from a solicitor prior to any disclosure or signing of documentation. HMRC are not legally obliged to share their evidence and if they do then this can be in a summarised form, and it is inevitable that the case will knock at the doors of the magistrates’ court. How long can you endure this investigation? HMRC
Hirji Patel Vasanti Patel Chartered Certified Accountants do not give a definite timescale as the complexity of each case does vary. Should they choose to take a detailed approach, their power entitles them to involve third parties. As seized documentation can be held for a long period, the Crown Prosecution Service will have the final say. Can you plead for bail? Of course you can. The onus is on your solicitor to evaluate whether the court will favour you or HMRC. It is important to disclose all supporting evidence to the magistrate in order to strengthen your case. As you finally consider your options of whether to get involved in such an activity, criminal tax investigation is nothing of the past. With the eagled-eye of HMRC coupled with the stringent plans of George Osborne, you should not be misled to think that the justice system has softened. The opening of more cases and the extent of scrutiny will soon identify those offenders. For further information visit www.jcp.co.uk
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20-Prideveiw_A4 Temp 29/04/2013 15:17 Page 20
How to navigate the new commercial property finance landscape n the world of commercial property finance, there are two types of investor – those wanting finance, and those with finance. UK bank deleveraging and the ensuing low prices has drawn in a new breed of lenders, meaning that both of these investor types now face a set of circumstances unseen before. Regardless of what side you may be on, our management arm, Pride Management can assist.
For those wanting finance The sub-£2m commercial property market is now extremely fragmented. Although many banks have withdrawn, some are still lending. Interest rates charged vary substantially and no finance package is the same with many banks demanding compromises such as lower LTVs, shorter loan terms, higher amortisation profiles, personal guarantees, onerous financial disclosure, capital & interest deposits and higher fees. We believe the larger banks are generally not worth dealing with, so never before has the need for a good, connected broker been so important, and in our network we have one of the best. For well-backed investors seeking blue-chip properties, we have arranged loans up to 75% of the purchase price with interest rates from just 3.3% over the Bank Base rate, often leading to double-digit returns! By bluechip, we mean well-located property let to strong covenants for over 10 years – such prime property is rare today at the right price, therefore a good commercial property agent is paramount. By well-backed investors, we mean those with good background trading businesses or high salaries (e.g. pharmacists, nursing home operators, lawyers, bankers & other professionals) who meet lenders’ underwriting criteria. For riskier properties or buyers with lesser financial strength, new lenders have entered the market over the past 2 years who are geared up to assist. However, they prefer to receive deals through specialist brokers who understand their requirements. In this segment, we are also seeing plenty of deals suitable for cash buyers, as even without finance high returns are achievable.
Asian Voice & Gujarat Samachar
Nilesh Raj Patel Consultant at The Prideview Group
For those already with finance Deleveraging has manifested itself in banks establishing ‘non-core’ divisions - on expiry these loans won’t be renewed and borrowers will have to remortgage elsewhere. It’s vital to evaluate alternative options well before expiry, but if your loan has already expired there are ways to buy time. Should you be deemed in breach of LTV or other covenants, lenders may serve penalties, demand repayment or enforce rent assignments, often declaring an ‘event of default’. An extreme case we recently handled was against West Bromwich Commercial, who sought full repayment, penalty interest and assigned themselves the rent on a client’s well-covered, multimillion pound portfolio let to blue-chip tenants. With the help of Vyman Solicitors, we brought the case to High Court and WON – all monies were refunded plus costs! Visit the News page on our website for the full details. Banks often rely on ‘market disruption clauses’ in their facility letters which are susceptible to challenge. We’ve met many borrowers in similar situations and are considering launching a class action lawsuit, so contact Anup Vyas of Vyman or myself to join us. Whilst some investors may currently be sitting pretty and enjoying record low interest rates, many unfortunately were (mis)sold Interest Rate Swaps locking them into much higher rates. This latest scandal is brewing and all the major banks are involved. We have moved quickly and already launched cases for several affected clients in partnership with a reputed swaps misselling expert and urge affected parties to contact us for more info. In conclusion, the current equilibrium seems set to continue in the immediate future, with bank deleveraging forcing plenty of keenly priced stock on to the market whilst low interest borrowers and cash buyers pick up these bargains. To navigate this new landscape it’s worth taking the advice of an experienced commercial property consultant and The Prideview Group look forward to helping you prosper during this next phase in the UK’s protracted recovery. To see more property deals visit www.prideviewproperties.co.uk and to learn more about The Prideview Group’s services visit www.pridemanagement.co.uk or call 020 8863 8680 to arrange a free consultation.
21-Advert_A4 Temp 29/04/2013 15:55 Page 21
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22-Paresh Davadra_A4 Temp 29/04/2013 15:19 Page 22
Currencies Volatile year thus far
Paresh Davdra Dealing Director of RationalFX, t has been an interesting and volatile year thus far in Currency Specialists. currency markets especially for UK based investors looking to invest sterling. Fears of a triple dip recession, the stripping of the UK’s AAA credit rating and my. Added to this we recently had the head of the continued talk of the Bank of England (BoE) expanding Bundesbank, Jens Weidmann state firstly that he the £375bn quantitative easing (QE) program has haltexpects the European economic recovery to last at ed sterling’s progress and at one point this year sterling least a decade and secondly suggested that the ECB was the worst performing currency of all the major curshould reduce interest rates should new economic rencies. data warrant it. A risk for sterling at the moment remains the A reduction in interest rates would disfavour the BoE’s tolerance for inflation to remain high for a lot euro, especially when you look at it from an investment longer to boost the economy and employment. Whilst point of view. Currently the euro zone interest rate high inflation would give less scope for the BoE to stands at 0.75%, a reduction of 25 basis points would increase the current QE plan and thus be positive for put the rate on par with the UK’s 0.5%. Thus in times the pound; high inflation would also put pressure on of increased optimism, the lure of the euro for investors the pound given the negative impact of the higher seeking out high yielding assets could dwindle, espeprice of goods on the economy. So it looks like the BoE cially against the pound. If both currencies have the and its incoming governor, Mark Carney, face a tough same yield, but one currency has the attraction of balancing act in order to try and restore confidence being slightly safer, then the safer perceived currency back into the UK. should prevail. In this case the perceived safe currency The US dollar has prevailed fairly well this year would be sterling. after the fiscal cliff was avoided. With the US economy showing moderate signs of growth and encouraging signs that unemployment may fall to the targeted rate of 6.5%, there has even been speculation that the Federal Reserve may even begin to rein in their QE program of US$85bn worth of asset purchases a lot earlier than initially planned – a practice that would support the US dollar. The US dollar also remains well supported given that it is considered to be a safe haven, especially in recent times following the International Monetary Fund’s decision to revise global growth for 2013 from 3.5% to 3.3%. However, the US is set to reach its debt ceiling in May and if there is further political deadlock over a deal being concluded to raise it, we could well see confidence come out of the US dollar. That’s not to say sterling will rise to the highs of The euro zone continues to be in recession, Italy summer 2012, when GBPEUR got to the dizzying still has no government and Cyprus almost failed to heights of 1.28. Whilst a lot of the bad news for the UK receive its €10bn bailout package; one would think has been priced in on the GBPEUR rate, risks still perthat with all these factors, demand for the euro would sist for the pound with especially with the potential of have dwindled. Disregarding short term price swings, further QE given that incoming BoE Governor has been the euro still remains pretty well valued despite all the an advocate of this for a quite a while. So gains in the uncertainty surrounding the single area. However pound could well be limited over the next six months. recent events from the euro zone may put downward We expect trading to remain relatively range bound for pressure on the value of the euro. In the latest monethe next six months given the risks for both currencies; tary policy speech, European Central Bank President with 1.1890 on the topside and 1.1550 on the bottom Mario Draghi, has indicated that a cut in interest rates side. may well be on the cards in order to boost the econoFor further information visit www.rationalfx.com
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23-New_A4 Temp 29/04/2013 18:10 Page 23
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24-Roger Aitken Picking Up_A4 Temp 29/04/2013 15:20 Page 24
Picking Up The Right Investment Funds Roger Aitken, Financial Journalist f you are considering investing in an investment fund or mutual fund but are unsure just how to go about it or which ones are the most suitable, then you are unlikely to be alone. That said, the selection process is much easier than one might think. Critically though investors still need to do their homework. Prior to acquiring shares in any fund, an investor must firstly identify their objectives in terms of how they want their money to be invested. So, is it a case of seeking long-term capital gains or is current income the preference? Will the money be used to pay for a retirement a few decades away or to help pay for a sibling’s university education? Identifying your goal is important as it will enable you to dramatically whittle down the myriad of investment funds. While the UK has several thousand to choose from, the US has over 8,000 mutual funds in the public domain. Wallace Wormley, managing director of OSPARA, a UK-based firm engaged in investment consultancy practice advising institutional clients and family offices, says: “Understanding your basic investment goals and risk temperament are major considerations in working out the types of investments that are most suitable for an investor.” The most fundamental questions one needs to have clear and firm answers to broadly span four aspects. (1) Investment Objectives: What are you trying to achieve by investing in funds growth of capital, income or a combination?; (2) Time Horizon: How long a target period are you looking to invest? (e.g. Short term over 1-3 years, Medium term (3-9 years) or Long term (>10 years); (3) Risk: How much are you willing to lose and how much volatility can you tolerate related to prices and income levels? Can you accept dramatic swings in portfolio value? and, (4) Liquidity: How quickly will you need some or all of your money back? Wormley adds: “The answers to these questions should provide a roadmap for your
Asian Voice & Gujarat Samachar
strategy of investing, since past performance of funds is certainly not a reliable guide to future performance.” If an investor plans to use the money in their fund(s) for a longer-term need and is prepared to assume a fair degree of risk/volatility, then the investment style may dictate choosing a long-term capital appreciation fund. Typically these types of funds hold a high percentage of their assets in ordinary stocks and are considered volatile in nature. However, they offer potential for a substantial reward over time. Conversely, if the need is for current income then purchase shares in an income fund. Corporate debt and Government bonds are the two of the more common holdings in income funds. And, where an investor has longer-term needs, yet is unable unwilling or unable to take on board substantial risk then a balanced fund (investing in both bonds and stocks) may be the best alternative. Investment funds make their money by charging fees to the investor. Therefore, it is worth appreciating the different types of fees one may face when purchasing such a fund. Some charge a sales fee known as a ‘load’ fee, which will either be charged upfront on the initial investment or upon the sale of the investment. A front-end load fee is paid out of the initial investment made by the investor, while a back-end load fee is charged when the investment is liquidated or sold. Both front- and back-end loaded funds typically charge 3%-6% of the total amount invested or distributed. When scrutinising investment fund sales literature investors should look for the firm’s management expense ratio, which is simply the total percentage of fund assets that are being charged to cover fund expenses. This one number can help clear up a lot of confusion since it relates to sales charges. The higher the ratio, the lower the investor's return will be at the end of the year. One should also evaluate the manager’s performance and their past results by undertaking some research, but beware historical performance is no guide to future results. Ordinarily too the fund’s size does not impact its ability to meet its investment objectives. Choosing an investment fund may appear daunting, but knowing your objectives and risk tolerances at the outset is half of the battle. Conducting due diligence before selecting a fund can go a long way to increasing your chances of success. Roger Aitken is a freelance financial journalist and a former FT staffer who writes on investments, exchanges and trading technology.
23-25-Advert_A4 Temp 29/04/2013 15:20 Page 25
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26-27-Kiran Patel_A4 Temp 29/04/2013 15:26 Page 26
A Budget to support an “Aspiration Nation”
Kiran D Patel FCA Partner at Weston Kay hen he delivered his fourth Budget stateChartered Accountants ment, to an animated House of Commons, the Chancellor George Osborne pledged his support for “aspiration” and vowed to face the UK’s sion and a £72,000 cap on social care costs, to 2016. economic challenges “head on”. Acknowledging the Government’s understanding The message was simple. There was a widethat families are facing substantial financial pressures, spread concern over the grim economic outlook. The the Chancellor confirmed the cancellation of the rise in Chancellor announced that the Office for Budget fuel duty planned for September, and raised some Responsibility had slashed the official growth forecast cheer in the house with the announcement of the for 2013 from 1.2% to 0.6%. Last week’s news scrapping of the beer duty accelerator. announced by the Office for National Statistics demonstrated that the UK economy avoided a triple dip recesThe main Budget highlights are noted below:sion and in fact, no doubt, it was a relief for the Chancellor as the first GDPS showed that the economy Budget Highlights grew by 0.3% in the first quarter of 2013. However, l The main rate of corporation tax is to fall to 20% despite this, the Chancellor is still acknowledging that with effect from April 2015. Effectively, this will dealing with the deficit is likely to take longer than he mean that companies will be taxed at a single rate had hoped and that borrowing would rise to £114bn of corporation tax. this year. In addition, the Chancellor insisted that the l TThe income tax personal allowance will be Government was “slowly but surely fixing our country’s increased to £10,000 for the year of assessment economic problems”. 2014/15 and the higher rate tax threshold will be This Budget was heralded as a mandate for those increased by £415 to £41,865. who aspire to work hard and get on. A number of sigl TA £2,000 employment allowance for businesses nificant measures were unveiled aimed at supportand charities will be set up against their employer’s ing businesses and individuals, with headline national insurance contributions with effect from announcements including an April 2014. additional reduction in the l TA new tax free child care main rate of corporation scheme, to be phased from tax, bringing the tax down Autumn 2015, to provide 20% to 20% from 2015, and a of child care costs up to much anticipated increase £6,000 per child per year for in income tax personal children under the age of 12 allowance, which will see “slowly but surely fixing will be set up. In real terms the threshold reaching the our country’s this will mean families with coalition’s £10,000 target economic problems” children under the age of 12 in 2014, a year earlier than can receive tax free childcare originally planned. vouchers worth up to £1,200 Businesses will benefit from a new employment per child per year. allowance, which will cut employer’s National l TA new single tier state pension to be introduced Insurance bills by up to £2,000 from next April, from April 2016. exempting an estimated 450,000 small businesses l TA limited one year extension of capital gains tax from paying any National Insurance Contributions reinvestment relief for seed enterprise investment whatsoever. schemes. Other measures included an annual £3bn boost l TStamp duty to be abolished for shares listed in to the UK infrastructure from 2015, together with supexchange such as aim from April 2014. port for home buyers through extension of shared equil TA package of measures to be introduced to ty schemes, offering loans of up to 20% for buyers of increase the supply of low deposit mortgages for new build homes. credit worthy households including a Government In his Budget speech, the Chancellor also conbacked mortgage guarantee scheme with effect firmed the Government’s recently announced plans to from January 2014. offer 20% tax relief on child care up to the value of l TA series of specific anti-avoidance measures £1,200 per year per child from 2015, together with a alongside the new general anti-abuse rules to be bringing forward of both the new single flat rate penintroduced.
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26-27-Kiran Patel_A4 Temp 29/04/2013 15:26 Page 27
“No plan B” – an economic background to the Budget When George Osborne became Chancellor in the Spring of 2010, the National Budget deficit, the difference between the Government’s annual spending and receipts, was estimated at a record £163.4bn. Tackling the deficit was declared the coalition’s top priority and in his first Budget speech – the June 2010 emergency Budget – the Chancellor had outlined his plans to eliminate it completely by 2014/15. This will be achieved by a combination of low public spending and tax rises in an approximate ratio of 80:20, signalling an approach defined as “Plan A” in political circles and dubbed by the media as an austerity programme. In reality, the emergency Budget forecasts proved unattainable. In his 2013 Budget statement the Chancellor was forced to announce that by 2014/15 the deficit will stand at 5.9%, far from the original predicted surplus of +0.3%. There have been other difficulties for the coalition, with economic growth slow at best and a double dip recession. Yet the Chancellor has consistently rejected labour’s calls for a Plan B – which proposes borrowing more to spend on capital investments in the hope of stimulating growth – on the grounds that any positive effects of such actions would be far outweighed by the risk of an increased cost of borrowing, should the markets react badly to the Government’s change of course. Even the loss of the UK’s triple A credit rating
recently has not altered the coalition’s determination to stick to Plan A. In a speech made just a fortnight before the 2013 Budget, Prime Minister David Cameron reaffirmed his Government’s commitment to its course, saying: “There are some people who say that our focus on deficit reduction is damaging growth, and what we need to do is to spend more and borrow more. It is as if they think there is some magic money tree. If there was another way, an easier way, I would take it. But there is no alternative.” The above is a very brief outline of the Budget highlights and an understanding of the economic background to the 2013 Budget statement. All in all, there was much that was familiar about George Osborne’s fourth Budget. Many of his announcements had already been revealed in his Autumn statement in December 2012. The economic outlook was bleak back then, and little has changed now. However, the Chancellor has managed to produce some surprises despite the difficult economic constraints set upon him. The information contained in this article should not be relied upon on its own for detailed tax planning for individuals or businesses. There are many factors that need careful consideration and research by you and your professional advisors, which should pay handsome dividends, prior to taking any action. The proposals mentioned in this article may be subject to amendment.
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28-Deepak-Creative_A4 Temp 29/04/2013 15:27 Page 28
Getting Creative What new ways of raising money are there? Deepak Kuntawala Chairman-Founder DVK Group Ltd usinesses are looking for alternatives to bank funding, since many in the UK and the west have been suffering under the financial crisis. There is a range of options available but you need to be aware of the pitfalls involved. It is good to treat each business as an individual case and provide a tailored solution to money financial queries. It helps if you can find someone who specialises in how to invest sensibly, and who is well connected internationally. In international trade, there is an option where those providing finance release funds to a business based on an order that they have secured from a customer. So the business does not have to wait for the customer to pay. This is known as Receivables Finance. This way, a business can get an immediate cash injection and is able to grow without financial stress. By this method the business exporting and the financier work together to agree payment terms with the importer. So the financier takes on the debt from the exporter and pays them the monies due from the importer. As well as helping the exporting business maintain a healthy cash flow by paying them upfront, the financier takes on any risk to do with failure to pay. This really helps the importer with his or her debt and credit record.
Pre-Shipment Finance Another option for those involved in international trade, is when a lender agrees to provide an agreed amount of an order from definite secured contracts to the business. This money can then be used by the business to help fund the activities it needs to carry out before it ships the goods to the importer. For example, the money may be used to secure warehousing space, pack raw materials or pay for the required export documentation to be produced.
Post-Shipment Finance This is where a financier advances an agreed percentage of the value of anticipated customer payments, but in this case after the goods have been received. This type of finance can be used by both producers of raw materials and manufactured goods and like the first category on this list, means that the business in question isn’t waiting for customers to make payment
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before receiving monies owed. It is able to focus on other activities.
Crowdsourcing The concept is simple. Investors sign up and place cash in an account. If the fundraising is successful, a business might find that it has acquired a large number of shareholders. Crowdsource funding is one of several alternative techniques that are rising in popularity as bank lending remains tight. Some of these sources, such as crowdsourcing, are genuinely new while others, asset-based lending for example, are coming into their own following the recession. Meanwhile, there are various government-backed cash sources aimed at providing funds for SMEs.
Loans and card payments New to the UK is the American idea of microfinance secured against credit and debit card receipts. Again, it is a simple idea. A business needing cash to buy equipment or stock up ahead trading months borrow money that is paid back each time a customer makes a card payment. For example, every transaction might see 15% going to the lending agent until the debt is paid off. If trade goes well, the loan is paid off quickly. If trade doesn’t progress quite so well, the debt takes longer to repay. Loans can vary in amount from £3,500 to £100,000.
Asset-backed lending Asset based lending is used by over 40,000 businesses in the UK to fund their activities. Funds are lent against the assets a business owns, which could include property, plants, machinery and stock. In the case of international trade, this could include assets tied up in the supply chain such as stock, which many traditional lenders such as banks may not accept. One reason for seeking finance from an ABL company is speed. Often, customers receive more individual attention from ABL providers than from regular banks. Sometimes businesses can borrow from both ABL providers and banks; raising the money available to them. For further information visit www.dvk-global.com
29-Suresh Vagjiani_A4 Temp 29/04/2013 15:27 Page 29
You get what you pay for he words assure, insure and ensure all come from the same Latin root which means to make secure. When taking out an insurance policy you're trying to protect yourself or someone else if a pre-defined event occurs. There are some principles of insurance, one is you must have what's known as something called insurable interest in the event, meaning you cannot insure someone you do not know or have no vested interest in; for example if you think someone will die early, you cannot take insurance out on him/her. The other principle is you are not allowed to make a gain from an insurance claim, the idea is not to make a profit but to bring you back to the same situation as before the event. If you were to make money from the event you may encourage the event. Typically an insurance policy is one where you make a stream of payments, monthly or annually, in return for a risk to be covered. Often when it comes to Home Insurance the tendency is to find the cheapest possible premium. Nowadays there is a whole host of comparison sites which will look for the cheapest quote for you; however the devil is in the detail. Everyone likes the idea of getting a bargain, sure enough there do exist discrepancies in the market and these should be exploited, but often in our search for finding the cheapest we end up getting a poor product which will not cover our needs to the extent we had hoped or if it does it may be a long fight and a lot of hard work to get to this point. Unfortunately, often you do not realise what your policy covers until you have to claim upon it. Even though documentation is provided who has the time to go through all this paperwork and jargon and make comparisons. One way to help with this is to use a good broker, however just be careful the commission is not the driving force for his/her recommendation. When comparing Buildings Insurance premiums you have the building value insured, which will not change, so the difference in premium is not based on this value. There are other variables which will influence the premium, one is the variety of risks covered. For example if your house gets robbed and you have not informed the insurer correctly of the type of lock you have the claim may be invalidated. Actually a common question asked is “Are the locks in your home British ‘safety standard’, a five-lever mortice lock conforming to BS361m or a cylinder rim deadlock?” Unsurprisingly this question is often answered incorrectly as to get the right answer you would need to take the lock out to check, so there is a risk that the
Suresh Vagjiani Sow & Reap A Property Investment Company insurer may be inclined to reduce the payout or even refuse to payout completely. This of course will be at the discretion of the insurance provider; this is where you will see the difference between a company offering cheap premiums and a good quality company which values customer service. As you can see, it is important to understand that there are variables apart from the price which will affect the claim in the event of a payout. Also be aware of the range of risks covered and the hassle factor involved in making a claim. Those companies which are substantially cheaper can often afford to be so because they do not pay out readily. When you purchase a quality form of cover which is not based on price you will be amazed to see the level of service you receive. There are niche insurance companies which do value customer service and aim to retain its customers long term. As with everything, you get what you pay for! For further information visit www.sowandreap.co.uk
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30-31-Rakesh x1.5-Final_A4 Temp 29/04/2013 15:28 Page 30
The Bank of Sons and Daughters ach year thousands of families take on new responsibilities. They turn into a ‘Bank of Sons and Daughters’ as they need to provide financial assistance and support to their ageing parents. Sadly in many cases they are struggling to save for their own retirement at the same time. To help you, I have put together a six step financial plan to help guide you through the process:1. Take over gradually. Do we really have a choice in helping our parents? Not really, this coupled with the fact that better healthcare and higher standards of living will mean that many Asian families are living longer (especially when compared to mortality rates in the Asian sub continent), requiring an increased savings pot to last the full term of their lives. And this is before the financial crisis hammered their investments and possibly the value of their houses. “It’s a no win situation” says Hemang Patel, a 55 year old supporting his 77 year-old mother, now living independently in a property he bought for her 5 years ago. Leaving financial planning to the last minute creates its own problems. Mr Patel is far from alone, as the population of adult children spending money to support ageing parents is on the rise. Although money is a real cost, often there are other variables at play, such as time and emotional support. Statistics tell us that the cost of patient care will have tripled, when looking over the last 20 years. A recent survey of family care givers found that 32 percent of adult children spend more than £4,000 pounds annually on their parents’ expenses, often with measurable lifestyle impacts, through the reduction of their own personal cash available for their spending . Culturally, it has been the domain of the sons to look after ageing parents, but another recent survey found that over 45% of daughters said that ‘parental financial responsibilities’ kept them up at night, with the worry about how they will manage ongoing support for their parents or elder relatives. "I am surprised to see that there are lots of Asian families where the second or third generation needs to financially assist the first generation," says Mr Gupta, a care home owner in the South East. "People often approach us and ask us, about dealing with the situation and then enquire as to how unique their situation is”. commented Mr Gupta. Sadly it seems that situation is more common than most people think.
Rakesh Shah Advisory Fund Manager at Kingly Capital
Asian Voice & Gujarat Samachar
2. Get your own financial plan in order. Financial assets, real estate planning, medical and healthcare insurance should all be covered. Start early for the best prices and coverage. I am often advising clients as I manage a number of asset portfolios for mature clients and when discussing the various options for dealing with planning of finance for older parents, the different solutions really depend upon on how early you begin the process. Tax planning is essential and although every situation is unique, we encourage clients to set aside time and resources to manage investments. If your own finances are healthy, you are in a much stronger position to assist your parents. 3. The most important advice I can give is ‘start the conversation early’. When the family roles eventually reverse and parents are forced to give up control and rely on extended family for financial assistance, many ageing parents feel uncomfortable giving up that control to their children. This is why it’s key to develop an open and trusting relationship regarding finance and money with your parents well before there is any crisis. “Get that conversation started early and make regular time for reviews as circumstances change. The approach should not be on how to ‘mix a cash, equity and property portfolio’, but one where the needs and expectations Six step of parents are discussed in an financial plan open and friendly atmosto help guide phere.” 4. Assist in ensuring you through they are adequately covered. the process Options include payment into insurance plans that would provide care and assistance over the duration of policy term. The earlier these are started the better. The same is true for private medical insurance. These costs can escalate later in life and coverage for this is not available for pre-existing conditions. Investing in longer term healthcare plans will really relieve the financial and emotional burden with dealing with unknown medical bills. 5. Make it legal. In the event your parent’s health deteriorates rapidly, you or a trusted ally
30-31-Rakesh x1.5-Final_A4 Temp 29/04/2013 15:28 Page 31
will need to be given the legal authority to make finana primary residence and invest in property that is exactcial and health decisions for them. ly half the value of the family home. In the long run, 6. Get help with the financial aspect. In the low you are at risk if property values fall. The second investyield environment we live in today, ment provides a fixed income after the cheap money is chasing limited oppordeduction of loan interest and associated tunities. So far, rock bottom interest rental costs. rates have fuelled a rally in the major For those that have higher risk equity indices and also London properappetite, a number of funds are available ty. If we are honest, these could be clasfor investment for both capital and income sified as mini bubbles. But few alternareturns, although the risk profile of this is tives exist, which probably means they much higher. will continue. Rakesh Shah is an Advisory Fund Investments by their nature are Manager at Kingly Capital [rakesh@kinglycyclical and this is very important for capital.com] , based at Sun Global future savings planning. For example, in Investments with a team of 15 people equities, if you invest in a diversified working with HNWIâ€™s and families for the portfolio at the wrong time (i.e. a high investment of assets. point in the market), your only saving grace will be the passage of time, whereby you can allow your investment to mature (sometimes these cycles have taken over 20 years) and surpass their prior peaks. The key here is the collecting of dividends (income) along the way, which compounded has produced decent returns that beat inflation. One option is to partially rely upon the State for support. Although inflation and the reduced appetite for the Government to increase payments in line with living costs, means that this will be the last resort for most families. A second option is to plan for a fixed equity release from The only Indian non-life insurance company property (the family home) when to achieve over US $ 1.5 Billion Global Premium the need arises. With huge Established in the UK in 1921, New India has operations in 27 countries across the globe. We swings in interest rates over the offer the market an A M Best "A-Excellent" financial security rating and a quality range of last few years, this also requires Commercial Products backed by Underwriting expertise to match, moulded to your needs. much thought as the interest payments on the loan can massively Look to New India Assurance for impact the free cash flow that Care Sector Property Owners Business Combined this can generate. The challenge with this is that you are at the Hotel and Leisure Industry Wholesalers and Manufacturers mercy of variable interest rates. A third more creative Facultative Property Reinsurance- Worldwide (From London Office) option with higher risk, would be to release equity on the main The New India Assurance Co Ltd family home and use this to Wholly owned by the Government of India * Authorised and regulated by the Financial Services Authority invest into another smaller properFor all of your general insurance needs, please call 0845 3000 988 or write to: ty that is rented out as a buy to let. This coupled with a fixed IPSWICH OFFICE LONDON OFFICE term mortgage and a longer term 3rd Floor, Crown House, 14 Fenchurch Avenue fixed loan rate, can provide relaIpswich, Suffolk, IP1 3HS London EC3M 5BS tively stable income over a ten to Telephone:01473 233 626 Telephone: 020 7480 6626 twenty year period. For example, Fax: 01473 233 625 Fax: 020 7702 2736 Email: email@example.com Email: firstname.lastname@example.org www.newindia.co.uk you could take 50% mortgage on
NEW INDIA ASSURANCE
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32-33-Rajesh Dhruva x 1.3/4_A4 Temp 29/04/2013 15:29 Page 32
Recent changes for NRIs ince enactment of Foreign Exchange Management Act, 1999 [FEMA] in June 2000,Government of India is progressively liberaliszing various regulations pertaining to Non-Resident Indians (NRIs) being Indian Citizens and also Foreign Citizens of Indian Origin residing outside India. A Foreign Citizen is said to be a person of Indian origin if he or any of his parents or grand parents were born in India or held an Indian Passport at any time. Such foreign citizen is treated as Non-Resident Indian (NRI) at par with Indian citizen residing abroad. Some of the important facilities granted recently to NRIs are:
I. TRANSFER from NRO to NRE account: In last 20 years radical changes have been made as regards repatriability of heitherto Non-repatriable incomes and balances held in Non-Resident Ordinary (NRO) account . India had a long history of not allowing remittance facility for sale proceeds of immovable property and other assets held prior to migration or received by way of inheritance and also various incomes earned in India including rentals, interest on NRO deposits; interest earned from loans to Firms or Companies etc. The restrictions have almost been dissolved now with all incomes arising in India being fully repatriable subject to payment of tax. NRIs had also been granted facility of remittance abroad an amount upto US$ 1 mn or its equivalent every financial year out of balance held in non repatriable NRO account. Now in May 2012 Reserve Bank of India has extended this facility of repatriation of US$ 1 mn to transfer balances from Non-Resident Ordinary (NRO) account to Non-Resident External (NRE) account. Thus NRIs who have accumulated balances in NRO account and who do not wish to remit such funds abroad or prefer to earn higher tax free annual interest in range of 9% in Rupee NRE deposits can directly transfer an amount upto US$ 1 mn per financial year out of balance held in NRO account. In last few years substantial NRO Bank deposits were created by NRIs to earn higher interest income in the range of 10% as against 3.5% interest offered on NRE rupee deposits. In December 2011 the Reserve Bank of India bought these interest rates on NRO deposits and NRE deposits at same level whereby NRIs can earn Income tax free interest of 9%+ on NRE deposits as 9% interest offered on NRO deposits which is subject to Income-tax and also withholding tax @ 30.9% in India. Hence it is advantageous to transfer balance in NRO deposits to NRE account and earn 9% tax free interest which also provides the benefit of repatriability if the funds are sought to be remitted abroad at a future date.
Asian Voice & Gujarat Samachar
Rajesh H Dhruva Chartered Accountant Eligibility: Every NRI being an Indian Citizen or Foreign Citizen of Indian Origin maintaining an NonResident Ordinary (NRO) account is eligible to transfer NRE account or remit abroad an amount upto US$ 1 mn or its equivalent in each financial year. In India the financial year begins on 1st April and ends on 31st March. The transfer need not be in lumpsum and is permissible in piecemeal manner over the year. Transfer from NRO account to NRE account in the same bank of the NRI is permissible. Eligible Balances: All legitimate balances upto US$ 1mn per financial year in NRO account can also be directly transferred to NRE account subject to payment of tax as applicable which will include1 Balance created by transfer from NRE / Foreign Currency Non Resident (FCNR) account or forex remittance credited in NRO account earlier mainly to earn higher rate of interest in NRO account as compared to NRE account. 2 Realisation of non-repatriable investments like capital in partnership firm; proprietorship firm. 3 Sale proceeds of house property and any other immovable or movable property including capital gains purchased prior to migration. 4 Sale proceeds of house property / immovable property Inherited or received upon partition of family properties. 5 Erstwhile resident account bank balances held prior to migration. 6 Loans or deposits with individuals; firm or a company. 7 Amount of claim or maturity proceeds of Insurance policy. 8 Realisation of non-repatriable investments like capital in partnership firm; proprietorship firm. 9 Any and every legitimate receipt of income or proceeds of assets acquired legally. Documents and Procedure: Banks are authorised to facilitate and authorise transfer from NRO to NRE and the same is quite simple requiring submission of. 1 Documentary evidence in support of the credit of the funds like sale deed of property, loan agreement etc. 2 Tax Deduction Certificate from the bank in case of NRO deposits or from payor in other cases, if tax is deducted at source. 3 Copy of PAN Card, if availed, 4 Appropriate applications, Undertaking and Chartered Accountant's Certification relating to tax compliance.
II. Tax Residency Certificate (TRC): Since 1st April, 2012 any NRI wishing to avail advantage
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V. INR investments vs GBP deposits:
of lower tax rate as specified in India UK Double Tax Treaty which provides for tax rate of 15% on interest from Bank deposits in India is required to submit Tax Residency Certificate (TRC) issued by HM Revenue and Customs. Therefore an NRI residing in the UK wishing to opt for tax deduction and Income-tax rate of 15% on interest earned from NRO deposits as against normal tax deduction of 30.9% is now required to produce TRC in place of copies of tax identification number or tax returns accepted earlier For availing TRC an online application can also be made or an application be sent to HMRC Office at Liverpool mentioning name; address; Unique Taxpayer Reference; National Insurance Number and other basic details. Copy of the certificate is to be submitted to each of the Bank in India where the NRI has an NRO deposits whereupon the Bank is required to deduct tax @ 15% and provide a certificate of tax deducted at source. The NRI while filing his tax return in UK is required to include this interest income and also claim credit for tax paid in India on such interest income.
The devaluation of India rupee against the Sterling Pound and US$ has often discouraged NRIs to invest in an NRE rupee deposit or higher yielding Debt Schemes of Indian Mutual Funds. Technical study and comparison of income from Indian Debt Funds in comparison with GBP Bank deposits of Indian Banks in correlation of Rupee devaluation to the GBP and USD throw surprising results. As against annual compounded yield of 4.78% on a 5 years GBP bank deposit and 4.67%yield on a 10 year reinvested GBP deposit , the Indian Rupee Debt Funds have yielded annual returns in GBP terms of 10.42% over 5 years and GBP 10.20% over 10 years. With the GBP ruling at INR 82 as against INR 75 ten years back; INR 79.50 five years back and INR 68 three years back. the possibility of rupee depreciation are limited which promises higher return in GBP terms over next 3 year in 10%+ possible yield of Debt Funds of Indian Mutual Funds as against 3.85 % compounded annual interest offered on 3 year GBP Bank deposit by Indian Bank. India is indeed a land of opportunity as almost all the developing economies are but ignorance of laws and lack of professional approach often result in bad experiences but then an old proverb says that one needs to cross continents in search of gold but caution is a key when you swim in unknown waters. For further information visit www.femaonline.com
III. NRE/FCNR with resident: Non-Resident External (NRE) / Foreign Currency Non Resident (FCNR) account were allowed to be held by one or more NRIs only. The Reserve Bank of India has permitted resident close relatives to be joint holders in NRE/FCNR accounts and such holding is permitted on â€œformer and survivorâ€? basis The account can be operated by resident close relative as power of attorney holder. Upon demise of the NRI the first holder the balance will stand credited in name of the resident close relative.
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Resident Bank account can be opened jointly with persons who are residing in India. Now resident individuals are permitted to include NRI close relatives to be joint holders in such resident bank accounts on â€˜former or survivorâ€™ basis and NRI shall not be eligible to operate the account during life time of resident account holder. Upon demise of the resident first holder the NRI close relative being joint holder is required to convert the account as Non-Resident Ordinary (NRO) account. Loan against NRE/FCNR deposits : NRI deposit holders can avail a loan against their NRE/FCNR deposits in India. NRIs can also facilitate third party loan to friends or relatives for personal or business requirements. Since April 2009 this facility was restricted to Rs.10 mn. Now since October 2012 these restrictions are removed whereby NRIs can avail for themselves or facilitate for third party resident in India any amount of loan without any restrictions against the security of their NRE/FCNR deposits.
IV. NRIs in Resident Bank account:
Asian Voice & Gujarat Samachar
34-Advertising+credit Box_A4 Temp 29/04/2013 18:02 Page 34
Editorial Index Topics 1. Around the World in 80 trades 2. Diversification Through A Portfolio of Stocks 3. Making money work for you 4. Gold most desirable of precious metals 5. When is the right time to sell bonds? 6. What is outsourcing? 7. Welfare changes and the UK Economy 8. Currencies Volatile year thus far 9. How to navigate the new commercial property finance landscape 10. Picking up the right Investment Funds 11. Not being tax compliant ... the consequences 12. Getting Creative What new ways of raising money are there 13. The Bank of Sons and Daughters 14. You get what you pay for 15. Recent changes for NRIs 16. A budget to support an “Aspiration Nation”
Author Page No. Alpesh Patel 7-9 Roger Aitken Deepak Kuntawala Mike Temple Ben Kumar Sanjeev Patel John Chown Paresh Davdra
11 13 15 17 18 12 22
Nilesh Raj Patel Roger Aitken
Deepak Kuntawala 28 Rakesh Shah 30-31 Suresh Vagjiani 29 Rajesh H Dhruva 32-33 Kiran D Patel
Advertisers Index Company Name
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21 33 10 35 8 Back Page 16 10 10 29 14 25 4 19 25 23 6 31 21 23 16 23 25 14 25 2 27
Disclaimer The ideas and conclusions expressed in the articles are the author’s own and do not necessarily reflect the views of any particular company. They are for general interest only and should not be taken as investment advice or as an invitation to purchase or sell any specific financial product. The publishers of Finance, Banking and Insurance (FBI) magazine are not responsible for the individual views expressed by various authors in this publication and would like to direct readers to consult professional advisers or brokers if they require further information on any topic covered in this magazine. Some of the products, offers, opinions included in the articles and advertisements carry risk and readers should consider them at their own discretion.
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