Institute Of Management Technology Ghaziabad Inside this issue:
MARCH 11, 2012
Company in Focus:
StartUp in focus:
BusinessIntelligenze Markets this Week
News of the Week
CAN YOU SOLVE IT?
ONGC: MAKING TOMORROW BRIGHTER Sources of Data:
> HDFCsecurities > Economic Times > The Hindu > Rediff Money > MoneyControl.com > Financial Express > Indiapetro
CRR CUT FROM 5.50% to 4.75% BY THE RBI
Company in Focus : ONGC Oil and Natural Gas Corporation Limited (ONGC) is an Indian state-owned oil and gas company headquartered in New Delhi, India. It produces around 77% of India's total crude oil production and around 81% of natural gas production. ONGC is one of the largest publicly traded companies by market capitalization in India and the largest India-based company measured by profits. Vision "To build and nurture a world class Human capital for leadership in energy business". Mission "To adopt and continuously innovate best-in-class HR practices to support business leaders through engaged, empowered and enthused employees". Global Ranking • ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world and 23rd among leading global energy majors as per Platts 250 Global Energy Companies List for the year 2009 • ONGC ranks 24th among the Global publicly-listed Energy companies as per ‘PFC Energy 50” (Jan 2008) • Finance Asia 100 list ranks ONGC no 1 among Indian Blue Chips. • Occupies 155th rank in “Forbes Global 2000” list 2010 of the world’s biggest companies for 2010 based on sales, profits, assets and market capitalisation. • ONGC ranked 402nd position as per Fortune Global 500 - 2009 list;, based on revenues, profits, assets and shareholder’s equity. Pioneering Efforts ONGC is the only fully–integrated petroleum company in India, operating along the entire hydrocarbon value chain : •
Holds largest share of hydrocarbon acreages in India.
Contributes over 79 per cent of Indian’s oil and gas production.
Refining capacity of about 12 MMTPA.
Created a record of sorts by turning Mangalore Refinery and Petrochemicals Limited around from being astretcher case for referral to BIFR to the BSE Top 30, within a year.
Interests in LNG and product transportation business.
Technology • State-of-the-art seismic data acquisition, processing and interpretation facilities • Uses one of the Top Ten Virtual Reality Interpretation facilities in the world • Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR, Petrobras, Norsk, ENI, Shell • One of the biggest ERP implementations in the Asia Road Ahead New Discoveries and fast track development
Leveraging state-of-the art technology and global best practice
Equity Oil from Abroad
New Sources of Energy
Downstream Value Additions &Forward Integration Production from small and marginal fields
StartUp in Focus : BusinessIntelligenze BusinessIntelligenze helps decision-makers carry out BI delivered as Service in a sustainable, competitive & advantageous way with a very high operational focus. It was established in the year 2010. It employs 11-25 people. It has a turnover up to US $0.25 million. Its major markets are in Australia, New Zealand, Indian Subcontinent, East and Middle Africa, South and West Africa and North America .
Operations It is a dynamic company aspiring to be pure-play SaaS provider of Business Intelligence & Analytics to Companies that outsource their non-Core processes to Low-cost Countries such as India, Philippines & Americas with complete solution set for their business needs. It focuses on Business Performance and provides outsourced design, customization, deployment & support services for several BI platforms. Its solutions are deployed over Cloud as well as mobile especially in the domains of people focused processes, their performance monitoring and overall Supply Chain.
Competencies BusinessIntelligenze provides a business performance management solution that is focused on helping companies improve operational performance through interactive dashboards. Everyone making operational decisions can view, interact with, and analyze performance metrics, measures, and drivers that are relevant and updated for continuous performance improvement.
Products and Services It offers products such as â€˜Jumboâ€™ Business Intelligence. Business intelligence is the proven technique for achieving a significant business impact - from enhancing the top line to discovering new ways to reduce the bottom line; from trend analysis to customer retention; from revenue to expenses; from analytics on recruitment to retention; and constant benefit analysis.
Markets this week
Week gone by The week began with the Nifty breaking the previous lows of 5268 and drifting down further. The index however found support at the 5170 levels which also roughly coincides with the 200-day EMA. A smart rally was seen on Friday which helped to curb the losses seen in the early part of the week. W-o-W, the Nifty lost a marginal 0.43%. The top gainers this week were Tata Steel and Bajaj Auto with gains of 5.3% and 2.1%. However, Hindalco Industries and Maruti Suzuki lost 3.62% and 1.99%. Indian Markets Indian cement companies continued their upbeat performance mainly on account of increase in offtake from construction activities post monsoon. Demand is improving in rural housing, semi-urban housing and infrastructure segments in the western, northern and most importantly southern regions. Major cement players reported a growth of 12.1% y-o-y in the last month. The cumulative sales of top 4 players in April-February 2012 period has improved by 8.2% to 94 mt. Indiaâ€™s merchandise exports growth remained sluggish as shipments for February 2012 grew only by 4.3 per cent year to $24.6 billion. This was due to poor demand in markets overseas, especially in Europe, for items such as electronics, engineering and textiles. During the month, exports were outpaced by imports, which rose 20.6 per cent to $39.8 billion, leaving a trade deficit (export-import gap) of $15.2 billion. Key Sectoral Movement The sectors ended on amixed note this week. The top gainers were Auto, Consumer Durable, FMCG and Healthcare, which gained 1.8%, 1.5%, 0.9% and 0.6% respectively. The top losers for the week were Metals, Oil & Gas, POwer and PSU, which lost 3.9%, 3.2%, 2.5% and 1.4% respectively. Global Markets First-time claims for unemployment insurance for the week ended March 3 totalled 362,000, an increase of 8,000 from the prior week, according to the U.S. government. U.S. consumer credit expanded sharply in January in a generally positive sign for the economy as people borrowed money to buy cars and go to school, Federal Reserve data showed. But at the same time, the report also pointed to a decline in credit card usage, which could point to some jitters among consumers regarding their outlook for earnings. Total consumer credit grew by $17.776 billion in January. German manufacturing orders fell 2.7% in January, while the December gain was revised down 0.1 percentage point to 1.6% . While China's annual rate of consumer inflation slowed sharply to a 20-month low of 3.2 percent in February, comfortably within Beijing's 2012 target of 4 percent, giving policymakers room to further loosen monetary policy to support slowing growth.
News of the Week RBI cuts CRR by 75 bps to 4.75%
A decision to cut the Cash Reserve Ratio (CRR) by 75 basis points will reduce pressure on liquidity ahead of payment of advances tax by March 15. The short term rates may soften by about 25 basis points next week. Bank officials and treasury executives said the RBI decision would inject ` 48,000 crore into the banking system. This would help ease the pressure on liquidity which was pushing up rates on short term money markets. The RBI in a statement said the liquidity deficit has remained large on account of both structural and frictional factors. Further, the liquidity deficit is expected to increase significantly during the second week of March due to advance tax outflows and the usual frontloading of cash balances by banks. The revised CRR will be 4.75% from March 10, 2011. The central bank had cut CRR by 50 basis points in the third quarter review in January.
demand, the Indian steel sector sees mixed signals from the move. On one hand, the sector believes raw material prices might come down, as the demand for these from China would fall. Steel dumping might increase if high cost capacities in China are not phased out. The Indian steel sector has, time and again, cried foul over lower-thanproduction cost Chinese steel finding shelter in India. The industry believes this eminent slowdown in China would lead to more exports from the country, and some of it would reach India, causing steel dumping. China has been known for steel dumping in the past and a slowdown in domestic demand could mean this is going to increase in the near future. Essar, however, is optimistic about the situation and thinks this is going to change. Seshagiri Rao, joint managing director and group CFO, JSW Steel said, “If the steel demand in China falls then the excess steel production is likely to come in the international market. Then there should be some proactive steps to stop dumping.”
Euro zone finance ministers release 35 bn euro for Greece
China's low GDP target a mixed bag for Indian steel cos China has lowered its gross domestic product (GDP) projection to 7.5 per cent for 2012. As half of the world’s steel production coming from China and coking coal & iron ore prices solely dependent on Chinese
Euro zone finance ministers have released 35 billion euro from the second bailout package for debt-ridden Greece shortly after the government in Athens
reached a landmark deal with private creditors on a bond swap, which will halve its debts to around 107 billion euros. The finance ministers of the 17 nations using the euro, in a conference call on Friday afternoon, welcomed the pact by private sector holders of Greek sovereign bonds to write-down up to 53.5% of their claims in nominal terms by exchanging their bonds for new ones with less value, longer maturity and lower interest rate. In real terms, they may face losses up to 74%. The ministers were "quite encouraged" by the high level of participation by banks, insurances, funds and other private investors in restructuring Greece’s debts, Jean-Claude Juncker, Luxembourg’s prime minister and chairman of the euro group said after the conference call.
Jet Airways asked to pay dues of ` 69 cr After freezing the bank accounts of beleaguered Kingfisher Airlines, the service tax department has now served a notice on Jet Airways to pay up about ` 69 crore as dues soon or face similar consequences, but the airline said it would do so by Monday. Jet Airways has not paid a total of about ` 69 crore worth of dues for January and February which they collected during this period, official sources said. The amount was to have been paid by March 6, they said, adding that if they did not reply to the notice soon, "we will have to go for freezing of their accounts. We have to talk to the banks in the process of assessing the number of accounts they have." Jet Airways posted a loss of ` 101.22 crore in the third quarter ending December 31 last year, as higher fuel prices, lower fares and rupee depreciation
News of the Week continued... continued to hurt the company. In the corresponding quarter the previous year, the company had posted a net profit of ` 118.23 crore. However, its total income increased to ` 3,939.16 crore for the quarter as against ` 3,473.38 crore recorded during the same quarter of the previous year.
India Inc salary to increase by 11.9% in 2012
Salary increases in India are projected to be 11.9 per cent in 2012, according to global human resource consulting and outsourcing company Aon Hewitt. The projections for 2012, in the 16th Annual India Salary Increase Survey, were marginally lower compared to the actual increase of 12.6 per cent in 2011. Compared to other markets, India outpaced Asia Pacific with the highest salary increase in the region, followed by China and the Philippines, projecting a 9.5 per cent and a 6.9 per cent salary increase in 2012 respectively. The frontrunner for this yearâ€™s salary increase is likely to be in the pharmaceutical industry, with a projection of 13.3 per cent for 2012, riding high on a surging year-on-year growth with a CAGR of 11 per cent. The second highest salary increase is projected to be in the engineering design/services with a salary increase of 13 per cent, which was 1.1 per cent higher than the India average.
Nissanâ€™s small car with Ashok Leyland to hit market by 2014 Japanese car maker Nissan will launch an entry-level small car, developed in partnership with Ashok Leyland, by 2014 that could be priced around ` 2 lakh to ` 4 lakh. Currently, the company sells only one small car 'Micra' in India in both petrol and diesel engines. According to its official websites, the car is priced between ` 4.14 lakh and ` 6.26 lakh (ex-showroom, Delhi). Currently, Nissan has a joint venture with Ashok Leyland to produce light commercial vehicles for the Indian market. Earlier, Ashok Leyland had said it would not enter the passenger car segment and would limit its association with the Japanese firm to only commercial vehicle space.
Budget 2012: Oil firms ask for tax incentives in Union Budget An association of private and PSU oil companies has demanded a slew of tax incentives, including income tax holiday for natural gas production and extending the same for oil refineries by another five years. In a pre-Budget memorandum to the government, the Petroleum Federation of India (PetroFed), a body comprising almost all public
and private sector oil companies, sought seven-year holiday for payment of income tax to all refineries that are commissioned by March 2017. Currently, the tax breaks are available only for units beginning production by March this year. PetroFed said the period of tax holiday for both exploration and refining activities should be extended to 10 years as in case of power sector.
Derivative traders carry forward bullish bets to March series Derivative traders carried forward their bullish bets to the March series on Thursday - the day February futures and options (F&O) series expired. But, the extent of rollovers was lower than last month, indicating that a section of the traders are not sure where the market is headed i n M a r c h . Nifty futures saw a 67% rollover, according to provisional numbers, which was lesser than 74% witnessed last month but in line with three-month average. Market-wide rollovers were around 78%, similar to their a v e r a g e . Based on the rollovers, analysts expect Nifty to range between 5,200 and 5,650 points in March.
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LAST WEEK’S ANSWERS
Answer the following questions
SET A 1. Watergate Scandal 2. LIBOR 3. Fiat Money
1. What is the claim to fame of a product named ‘Epsom Salt’? 2. “If you can’t beat them, don’t join them, rather make them irrelevant.” This is the essence of which business strategy? 3. An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource. 4. An interest rate swaps whose notional value adjusts according to rising interest rates by indexing the floating portion to a Constant Maturity Swap (CMS). 5. “This is a stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.”
SET B 1. ‘Docutalk Journal’ : Xerox 2.
‘Remembrandt Money: The Netherlands
Country whose currency means to grasp: Greece
Frankfurt: ECB LAST ISSUE’S RIGHT ENTRIES WERE FROM : Aritra Bhowmick & Rahul Mittal
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