COMMERCE WORLD

First Sight: Volkswagen Iroc concept

2009-05-04T19:05:00.000-07:00

The Iroc is a show car preview of a production coupe to be launched next year that will fill a gap in the Volkswagen model line up left by the demise of the Corrado 11 years ago. Volkswagen describe the Iroc as "transferring the globally successful Scirocco idea into the future" - the Scirocco Mk1 by Giugiaro being produced from 1974-1982, the Mk2 from 1982-1992. Like the Scirocco, the Iroc is a front wheel drive coupe with four seats - as opposed to the 2+2 seating arrangement of the only other sports coupe from Volkswagen Group: the Audi TT.

VW Scirocco Mk1 (1974-1982)

VW Corrado
Specification

The Iroc is 4240mm long, 1400mm high, 1800mm wide and has a wheelbase of 2680mm - 50mm taller, narrower and longer than the TT, and 40mm longer and wider than the Golf and 80mm lower - so almost exactly half way between Golf and TT dimensionally. Based on the Golf 5 platform (as is the TT) the Iroc uses the 'twin charger' (turbo and super charged) engine from the recently launched Golf GT - a 1.4 litre four cylinder engine that produces 210bhp in the Iroc that powers the front wheels through the Direct Shift Gearbox (DSG) also used in the Golf and TT.

Design
The most significant aspect of the Iroc's design is the introduction of a new Volkswagen grille type - a dominant, deep section hexagonal shaped design in brushed aluminium. This has been developed not as the new corporate face of Volkswagen to be used across the model line up, but as a new type of grille for use on sports orientated Volkswagen cars. It is the first instance of Volkswagen's new strategy to have different types of facial identity for different types of Volkswagen product - expect to see next a new type of face on the forthcoming large Volkswagen sedan that will sit between the Passat and Phaeton in the range.

The design is otherwise most notable for its near 'shooting brake' profile with an upright rear window which makes it more of a sports estate than coupe. Interestingly such a vehicle type was previewed by the Audi Shooting Brake a year ago at the Tokyo Motor Show, and has since been seen in the Renault Altica show car from Geneva (see Review story below).

The exterior otherwise owes a lot to the current Golf, whilst the interior has more show car bespoke elements, not least the 'Viper Green' neoprene, leather with reptile skin embossing and aluminium detailing.

Conclusion

Volkswagen Group have a broad proliferation of models across its mass market brands of Skoda, Seat, Volkswagen and Audi, but relatively few niche products - it has no small SUV, only one sports coupe (the TT), no proper sports car and was late to market with the Volkswagen Touran mini MPV. The Iroc suggests that Volkswagen now see the value of a sporty image leading product for the brand, and a car that might recapture the allure of the original seventies Scirroco. The car also innovates with its grille as part of a new corporate strategy on the brand's facial identity and with its practical shooting brake rear.

Related Stories:
Volkswagen Concept A - Geneva 2006
First Sight: Audi TT
Audi Shooting Brake - Tokyo 2005
Design Review: Renault Altica

Mercedes-Benz SLS AMG

2009-05-03T19:29:00.000-07:00

Mercedes-Benz SLS AMG
Mercedes-Benz has released sketches of the SLS AMG showing its 'swing-wing' door layout, an echo of the 300SL Gullwing's, and its two-seat interior, said to be aircraft-inspired. Cockpit features include jet-style air vents, a gear-lever like a thrust control, a center console like a plane's operating console, and a wide wing-shaped dashboard. This previews the Mercedes cabins of the future, apparently.

Mercedes will offer a choice of black, red, sand, porcelain or light brown leather upholstery, with light anthracite headlining; carbon fiber trim is optional. Switchgear is finished with metal-look soft-touch paint, instrument dials are backlit in white with red needles, and the small steering wheel is flat-bottomed, racing car-style. Occupants sit just 369mm above the road - but suitably cosseted in well-bolstered seats with lightweight magnesium backrests.

The exterior outline retains the usual SL-family long-hood, taut tail format, with low roofline and greenhouse slung rearward; it's a clear progression from the Mercedes-McLaren SLR. An extendable aerofoil preserves the sleek outline when stationary and at low speeds. The roof-mounted doors open by up to 70 degrees, supported by gas-pressure struts.

Aston Martin One-77

2009-05-03T19:27:00.000-07:00

Aston Martin One-77
Aston Martin revealed its first complete One-77 coupe at the Villa d'Este Concours d'Elegance this weekend in Lake Como, Italy - and collected its first prize for the car. This collectors'-edition coupe received the Design Award for Concept Cars and Prototypes, voted the clear winner ahead of seven other entrants including the Morgan Aeromax Supersports, the Zagato-designed Perana Z One, the Infiniti Essence and the Rinspeed iChange.

The V12-engined, 200mph-plus One-77 has an all-new monococque body structure with hand-crafted aluminum panels, and Aston Martin pledges "extraordinary workmanship and money-no-object commitment to quality". As indeed one would, for a car costing £1million plus local taxes.

The two-seater, two-tone cabin is finished in carbon fiber and leather, with dramatically curved air vents, dashboard cowl, instrument panel and sweeping center console. The lightweight shell-type bucket seats are white with dark gray inserts echoing the pattern of the carbon fiber, and the Concours show car featured pale blue-gray interior panels to complement its exterior paintwork.

Sales of the One-77 are to start officially next year, though Aston Martin is reported to have buyers signed up for all the 77 examples it will build.

Related Articles:
New Car: Aston Martin One-77
Aston Martin One-77 - Geneva 2009

Buffett: Berkshire looking to deal

2009-05-03T19:02:00.000-07:00

CEO Warren Buffett says the firm is willing to make a deal when it sees a compelling one, but it has no huge plans at the moment.

OMAHA, Neb. -- Berkshire Hathaway is ready to make a deal at the right price, but it has nothing in its shopping cart right now, CEO Warren Buffett said Sunday.

Buffett, the billionaire investor who runs the conglomerate, said Berkshire has $20 billion in cash and is "perfectly willing to make a deal that's compelling" should one arise. The comments come after Berkshire spent the second half of 2008 scooping up assets at reduced prices as a result of last fall's financial panic.

Neither Buffett nor Vice Chairman Charlie Munger would specify any industries or geographic regions where Berkshire might be particularly inclined to do a deal. Both said the company isn't currently planning to issue new shares or bonds to pay for a big acquisition.

The comments come as Berkshire wrapped up its annual shareholder meeting, which Buffett and Munger spent explaining the company's performance last year and how they see its prospects for coming years. Both said they expect the troubles that laid the markets low last year to pay off for Berkshire shareholders in the future.

Berkshire last year posted its biggest decline in net worth since Buffett took over more than 40 years ago. The firm's value dropped nearly 10%, as plunging stock markets hit Berkshire's investment portfolios and Buffett, by his own account, erred in his decisions, including the one to buy oil company ConocoPhillips (COP, Fortune 500) just before the price of oil collapsed last summer.

Even worse for shareholders, the company's shares dropped during 2008, giving back several years of appreciation. The trend in 2009 hasn't improved much: Berkshire shares are down 5% this year and 31% from a year ago.

But despite frequent references this weekend to Buffett's own mistakes - a video shown Saturday morning to kick off the shareholder meeting depicted him as having been demoted to mattress salesman by Berkshire's board - it is clear that Berkshire isn't dwelling on last year's performance.

Asked Sunday whether Berkshire had been, in Buffett's parlance, caught swimming naked when the tide ran out, Munger replied that those judging the firm's performance by short-term swings in its stock are acting like fools.

"If you think we're in trouble because the stock price went down, you don't understand what's going on," he said.

He added that Berkshire has been running what he described as "Andrew Carnegie's playbook" - referring to the steel tycoon's practice of grabbing market share from weakened competitors that run short of cash during economic downturns.

Along similar lines, Berkshire made multibillion-dollar preferred stock investments in blue-chip companies such as Goldman Sachs and General Electric last fall, when both were in need of cash and an expression of confidence from the world's most renowned investor.

Despite the recent decline in Berkshire shares, it seems clear that Berkshire shareholders aren't hurting.

Buffett said sales of See's Candy at the meeting surged to $180,000 this weekend, up from $160,000 last year and $100,000 in 2007. Berkshire's Geico unit sold 68 car insurance policies during the three day event - sales that will cover the costs of the annual meeting, Buffett said. Attendance was estimated at 35,000 people, up from 31,000 last year and 12 in 1981, Buffett said.

Those figures show Berkshire has been doing something right, Buffett said.

"We're not paying people to come here," he said.

Reduce Wipro, target of Rs 282: Asit C. Mehta

2009-05-03T19:00:00.000-07:00

Asit C. Mehta has recommended a reduce rating on Wipro with a target price of Rs 282 in its April 29, 2009 research report.

"Wipro’s 4Q FY09 IT services revenue fell 3.8% to USD 1058 million in constant currency, versus management’s guidance of USD 1045 million, led by reduction in volumes and cross currency headwinds. Given a challenging demand outlook for the next 12 months and the expiration of STPI in FY10, we expect earnings to increase at a CAGR of 0.8% over FY09-FY11. Thus, we have a ‘Reduce’ recommendation on the stock with a price target of Rs 282," says Asit C. Mehta's research report.

Sources: Moneycontrol

Gold headed for a big slump in May?

2009-05-03T18:59:00.001-07:00

So the equity markets are moving up across the globe. Then can the fall of gold
be far behind. No! And true to the prediction of market analysts, gold started its hurtling down in April with right earnest.

In fact, April was the cruelest month for gold if you compare the prices.

Gold climbed down, capping the sharpest monthly drop since October, as rising equities and a stronger dollar reduced demand for the precious metal as an alternative investment. Silver also plunged, said market observers.

Gold moved down 3.7 per cent for the month, the most since October and the second straight decline.

The MSCI World Index of equities headed for the second straight monthly gain on mounting speculation that the worst of the global recession is over. The dollar rose 0.2 per cent against a six-currency basket.

According to market analysts, the April slide in gold resulted from dollar strength and much-improved global equity markets.

Gold futures for June delivery fell $9.30, or 1 per cent, to $891.20 an ounce on the Comex division of the New York Mercantile Exchange. The most-active contract fell for the third time in the past four days.

Earlier, gold touched $880.10, the lowest in a week. The price may drop as low as $877.90.

Silver
futures for July delivery tumbled 45 cents, or 3.5 per cent, to $12.325 an ounce. The most active contract slumped 5.1 per cent this month. The metal still has climbed 9.1 per cent this year.

If the equity markets fare well in the coming days, which is likely considering the fact that across the economies there is an upward movement, the gold prices are likely to fall further. So, the April fall may be just the beginning of a bigger slump for gold.

Special gold schemes galore on Akshaya Tritiya

2009-04-26T18:27:00.000-07:00

Come April 27, gold jewelers will make a killing as people across the spectrum will rush to buy gold on the auspicious occasion of Akshaya Tritiya.

To cash in on the rush, various jewelers and World Gold Council have chalked out plans to lure customers.

As part of the efforts, World Gold Council, along with various partners, has announced special promotional offers and launch of new collections on the day.

India Post and HDFC Bank have also introduced specific promotions, increasing the attraction to gold on the festival on April 27.

Ranging from jewellery to bars and medallions, WGC has ensured that endless options are available to consumers coupled with exciting offers to make this Akshaya Tritiya truly memorable.

WGC, a commercially-driven marketing organisation, is funded by the world’s leading gold mining companies.

WGC aims to promote the demand for gold in all its forms through marketing activities in major international markets.

Announcing special promotions, WGC said Indians regard Akshaya Tritiya as one of the most auspicious days in the year. Gold jewellery has a very deep rooted connection to Akshaya Tritiya so it is encouraging to provide consumers with additional options and offers on this day.

Akshaya Tritiya falls on the third day of the bright half of the lunar month of Vaisakha of the traditional Hindu calendar.

The Sanskrit word ‘Akshaya’ means one that never diminishes, and the day is believed to bring good luck and success. It is widely celebrated in all parts of India by different sections of the society irrespective of their religious faith and social grouping. The day is particularly considered auspicious for buying long-term assets like gold and silver, including ornaments made of the same; diamond and other precious stones; and the real estate. The legend states that any venture initiated on the auspicious day of Akshaya Tritiya shall continue to grow and bring prosperity.

The day is also traditionally celebrated as the birthday of the Hindu sage Parashurama, the sixth avatar of God Vishnu. With the mass media and marketing, this day has been taken over by marketeers to promote sales and bookings for gold jewellery, houses, consumer electronics.

imessenger

2009-04-17T19:26:00.000-07:00

Significant Developments: Banks

2009-04-15T18:51:00.000-07:00

KeyCorp Prices $1.65 Billion In Concurrent Offerings Of Common Shares and Convertible Preferred Stock
KeyCorp announced that it had priced two equity transactions totaling $1.65 billion. KeyCorp priced $1.0 billion or 85,106,383 common shares and $650 million or 6,500,000 shares of Non-Cumulative Perpetual Convertible Preferred Stock, Series A, with a liquidation preference of $100 per share. KeyCorp also granted the underwriters over-allotment options on both offerings. The offerings are being conducted concurrently as registered public offerings under the Securities Act of 1933, as amended. The common share offering was priced at $11.75 per share. KeyCorp estimates that the net proceeds from the sale of the common shares will be approximately $970,000,000 after deducting underwriting commissions (or $1,115,500,000 if the underwriters exercise their full over-allotment option), but before deductions for other transaction expenses. KeyCorp estimates that the net proceeds from the sale of the Series A Preferred Stock will be approximately $630,500,000 after deducting underwriting commissions (or $725,075,000 if the underwriters exercise their full over-allotment option), but before deductions for other transaction expenses. Citi is serving as the sole book-running manager for the offerings. KeyBanc Capital Markets Inc., UBS Securities LLC, Morgan Stanley & Co. Incorporated, and Merrill Lynch, Pierce, Fenner & Smith Incorporated are serving as joint lead managers.

BRE Bank S.A. Announces Details of its Share Capital Increase
BRE Bank S.A. announced that 4,900 its new shares with a nominal value of PLN 4.0 per share have been registered.

Banjo BPI S.A. Announces Capital Increase
Banco BPI S.A. announced a capital increase from EUR 760 million to EUR 900 million, under the exercise of options plan, through the issuance of 140,000,000 ordinary shares.

Kenya Commercial Bank Launches $85 Million Cash Call-Reuters
Reuters reported that Kenya Commercial Bank launched its 5.5 billion shillings ($85 million) rights issue, aiming to boost capital and fund expansion. The bank issued 221.7 million new shares and investors can take up one new share for every nine held.

Sasfin Holdings Limited Cancels Special Share Allotment to Circle Capital Ventures (Pty) Limited
Sasfin Holdings Limited announced that the Company had entered into an agreement in terms of which it would allot and issue 9,630,000 new Company ordinary shares to Circle Circle Capital Ventures (Pty) Limited (Circle Capital) as a specific issue of shares for cash at a subscription price of ZAR 51.40 per share. The parties have now agreed that, in light of turbulence in the global credit and equity markets, it is not possible to conclude a transaction on appropriate terms acceptable to Sasfin, Circle Capital and Circle Capital's funders, and therefore the transaction will not be implemented.

Indusind Bank Ltd. Completes Allotment Of Global Depository Receipts
Indusind Bank Ltd. announced that it has concluded the issue of Global Depository Receipts (GDRs) numbering 3,51,92,064 issued at approximately $1.47 each. Each GDR would be represented by one equity share of the Company of the face value of INR10, fully paid.

Fortis N.V. Accelerates the Execution of its Solvency Plan
Fortis N.V. announced that it will accelerate its solvency plan. It has decided to launch a capital increase of EUR 1.5 billion by means of an accelerated bookbuilding offering on June 26, 2008. The Company also decided not to distribute an interim 2008 dividend, and intends to pay the full year 2008 dividend in shares. Fortis NV paid an interim dividend of EUR 0.70 per share for 2007.

Westpac Banking Corporation Increases Estimate for Planned Issue-WSJ
The Wall Street Journal reported that Westpac Banking Corporation has increased the amount it expects to raise from its planned issue of stapled preference shares to around AUD950 million (USD911 million). The Company had previously said it would raise around AUD600 million. The Company stated that the distributions are expected to be paid quarterly based on the 90-day bank-bill rate, plus the margin of 2.4% per annum.

Westpac Banking Corporation Increases Estimate for Planned Issue-WSJ
The Wall Street Journal reported that Westpac Banking Corporation has increased the amount it expects to raise from its planned issue of stapled preference shares to around AUD950 million (USD911 million). The Company had previously said it would raise around AUD600 million. The Company stated that the distributions are expected to be paid quarterly based on the 90-day bank-bill rate, plus the margin of 2.4% per annum.

Fortis N.V. Completes Accelerated Bookbuilding Offering
Fortis N.V. announced that it has completed its previously announced accelerated bookbuilding offering and has accordingly placed 150,000,000 new shares at a price of EUR 10 per share for a total amount of EUR 1.5 billion. Settlement of the offering is expected to take place on or around July 2, 2008.

Bank of Cyprus Public Company Ltd To List New Shares
Bank of Cyprus Public Company Ltd announced that on July 1, 2008, 7,186,618 new common shares will begin trading on the Cyprus Stock Exchange and Athens Stock Exchange, due to the Company's dividend reinvestment plan.

National Bank of Greece Increases Share Capital
National Bank of Greece announced a share capital increase of EUR 1,939,850 with the issue of 387,970 new common registered shares of a par value of EUR 5 per share. Following the completion of the share capital increase, the Company's share capital amounts to EUR 2,490,771,345 and is divided into 496,654,269 common shares of a par value of EUR 5 per share and 25,000,000 preferred shares of a par value of EUR 0.30 per share.

National Bank of Greece Increases Share Capital
National Bank of Greece announced a share capital increase of EUR 1,939,850 with the issue of 387,970 new common registered shares of a par value of EUR 5 per share. Following the completion of the share capital increase, the Company's share capital amounts to EUR 2,490,771,345 and is divided into 496,654,269 common shares of a par value of EUR 5 per share and 25,000,000 preferred shares of a par value of EUR 0.30 per share.

Western Alliance Bancorporation Announces Private Placement Of Common Stock
Western Alliance Bancorporation announced that it has completed a private placement of 3.8 million shares of common stock to a limited number of accredited investors. The issue was priced after the close of business on June 24 at $7.94 per share for an aggregate offering price of $30.2 million.

Southwest Bancorp, Inc. Announces Pricing Of $30 Million Trust Preferred Securities Offering
Southwest Bancorp, Inc. announced that on June 26, 2008, the Company priced $30.0 million aggregate liquidation amount of 10.50% Trust Preferred Securities to be issued by Southwest Capital Trust II, a statutory trust formed under the laws of the State of Delaware (the Trust), representing preferred beneficial interests in the Trust (the Trust Preferred Securities) in a firm commitment underwritten public offering at $25.00 per Trust Preferred Security. The Trust has also granted the underwriters a 30-day option to purchase up to an additional $4.5 million, aggregate liquidation amount of the Trust Preferred Securities to cover over-allotments, if any. The offering is scheduled to close on July 2, 2008. Each Trust Preferred Security will pay cash distributions at the annual rate of 10.50% of the stated liquidation amount of $25.00 per security, payable quarterly in arrears beginning September 15, 2008. The stated liquidation amount will be distributed to the holders on September 15, 2038. The managing underwriters (the Underwriters) of the offering are Stifel, Nicolaus & Company, Incorporated, Howe Barnes Hoefer & Arnett, Inc., Sterne, Agee & Leach, Inc., and Morgan Keegan and Company, Inc.

Komercijalna Banka AD Skopje Announces Placement of Capital Increase
Komercijalna Banka AD Skopje announced that it has decided to issue 471,000 shares with a nominal value of MKD 6,515 or a total of MKD 3,068,565,000.

PT Bank Victoria International Tbk Revises Rights Issue Schedule
PT Bank Victoria International Tbk announced that it has revised the subscription and payment period of its rights issue to be July 11 to August 25, 2008. It was previously announced on May 28, 2008 that its subscription and payment period will be from July 11 to 17, 2008 to shareholders of record on July 9, 2008.

BofI Holding, Inc. Announces Private Placement of Convertible Preferred Stock
BofI Holding, Inc. announced a private placement of its newly formed Series B - 8% Cumulative Convertible Nonparticipating Perpetual Preferred Stock (the "Series B Preferred"). The Series B Preferred has a liquidation preference of $1,000.00, an 8% dividend rate and is immediately convertible into shares of B of I common stock at a fixed conversion price of $9.00 per share. The net proceeds of the offering will be used for general corporate purposes, including additional capital funding to support asset growth at the Bank. The first $3.8 million of the Series B Preferred offering was closed through today, the end of B of I's fiscal year. The transaction will consist of several closing dates, generally expected to be complete by July 31, 2008.

Capitol Bancorp Announces Pricing Of $33.5 Million Of Trust Preferred Securities
Capitol Bancorp announced that on June 30, 2008, the Corporation priced $33,500,000 aggregate liquidation amount of 10.5% Trust Preferred Securities to be issued by Capitol Trust XII, a statutory trust formed under the laws of the State of Delaware (the Trust), representing preferred beneficial interests in the Trust (the Trust Preferred Securities) in an underwritten public offering at $10 per Trust Preferred Security. The Trust has also granted the underwriters a 30-day option to purchase up to 502,500 of Trust Preferred Securities to cover over-allotments, if any. The offering is scheduled to close on July 7, 2008.

Standard Chartered PLC Announces Additional Listing
Standard Chartered PLC announced that application has been made to The UK Listing Authority and The London Stock Exchange for a block listing of 100,000 ordinary shares of $0.50 each under the International Sharesave Scheme, to trade on The London Stock Exchange and to be admitted to The Official List upon issuance. The shares shall rank pari passu with the existing issued shares of the Company. The shares are expected to be admitted to The Official List and to trading on The London Stock Exchange on July 4, 2008.
Reuters

Goldman reports $1.8 billion profit

2009-04-13T18:37:00.000-07:00

NEW YORK (Fortune) -- Goldman Sachs reported a much stronger-than-expected first-quarter profit Monday, bouncing back from its worst quarter as a public company.
Goldman (GS, Fortune 500) also set plans to raise $5 billion through a sale of stock, saying it wants to become the first big bank to repay the federal loans extended during last fall's financial sector meltdown.
In reporting its results a day earlier than expected, New York-based Goldman said it earned $1.81 billion, or $3.39 a share, for the quarter ended March 31. Analysts surveyed by Thomson Financial were looking for a profit of $1.64 a share.
Goldman shares, which have surged more than 70% during the past month, continued rising late Monday, gaining about 4.7% for the day. Shares were down slightly in after-hours trading.

With the results, Goldman (GS, Fortune 500) bounced back decisively from the last quarter of 2008, when it posted its only quarterly loss since becoming a public company in 1999.
The firm said the latest quarter's gains were driven by big profits in its fixed income business, where revenue surged to $6.56 billion - 34% above the previous record.
"Given the difficult market conditions, we are pleased with this quarter's performance," said CEO Lloyd Blankfein in a statement.
In addition to the record fixed income revenue, which Goldman said was driven by "strong performance in interest rate products, commodities and credit products," Goldman also posted $7.15 billion in trading and principal investment revenue.
But Goldman's principal investments lost $1.41 billion during the quarter, reflecting losses on real estate and a stake in a Chinese bank.
Revenue in Goldman's financial advisory and investment banking businesses declined by 21% and 30% from a year ago, as dealmaking declined, while revenue in its asset management business fell 29%, reflecting the plunge in stock prices over the past year.
Goldman's results come on the heels of last week's announcement from Wells Fargo (WFC, Fortune 500) that its first-quarter earnings would be much stronger-than-expected, and just ahead of reports scheduled later this week from JPMorgan Chase (JPM, Fortune 500) and Citigroup (C, Fortune 500.
Goldman's numbers aren't strictly comparable with the results of its fiscal 2008 first quarter, because the first quarter marks the first full period since Goldman and rival Morgan Stanley (MS, Fortune 500) became bank holding companies. They made that shift last fall, in a bid to ease investor concerns about their access to funding.
As a result of their changed status, both firms committed to report their financial results on a calendar-year basis -- a departure from their previous practice of using a fiscal year that ended in November.
Looking to pay back TARP
Goldman received $10 billion in funding from the Treasury Department last year as part of the government's Troubled Asset Relief Program, or TARP.
While Goldman will still need the approval of regulators at Treasury and the Federal Reserve to repay the TARP money , Monday's announcement is the strongest indication yet of how eager Goldman is to return the funds.
The bank had previously indicated its desire to repay funds but had otherwise avoided making definitive statements about when it would do so.
Goldman's co-president, Gary Cohn, said at a conference last month that he didn't expect any banks to repay TARP funds until after they report first-quarter earnings and regulators have revealed the results of the stress tests they are conducting on big banking companies.
But that changed with Monday's announcement.
"After the completion of the stress assessment, if permitted by our supervisors and if supported by the results of the stress assessment, Goldman Sachs would like to use the capital raised plus additional resources to redeem all of the TARP capital," the company said in a statement about the stock offering.

Raju family may claim Rs 2,000 cr from Satyam

2009-04-09T08:39:00.000-07:00

The potential acquirer of Satyam Computer Services may have a new problem to deal with as NDTV has learnt that the Raju family is preparing to make a claim from the new investor in Satyam.
Sources suggest that the Raju family may demand nearly Rs 2000 crore from Satyam. Ramalinga Raju had claimed in his letter on January 7 that the family had invested Rs 1230 crore in the company to support the inflated figures and pay for the salaries of Satyam employees.
Funds invested by the promoters in various group companies are also on the radar. In addition, some of the assets of the company are believed to have been transferred into private companies, which the family now wants back in its hands.
The uncertainty surrounding the claim from the Raju family has already got the potential investors worried. BK Modi, chairman, Spice Group, being one who opted out citing lack of transparency in the entire process. “There can be risks that are undisclosed, coming through the CBI inquiry, which is yet not known. That is something further to what is known. These risks naturally everyone will have to take into account,” said Modi. When NDTV contacted Raju's lawyer, Bharat Kumar and he said: "I don't know anything about this. I cannot comment on this."
The winner of the bid will be announced on Monday but given the risks that are involved and the twists and turns that the Satyam saga has seen, the last may not have been heard on this issue.

Sources: NDTV

The story behind CBI’s Satyam investigation

2009-04-08T18:47:00.000-07:00

A voluminous 65,000 page chargesheet in the Satyam case was produced in the CBI court in Hyderabad on Tuesday and it was filed in a record 45 days since the CBI took over the case from the CID.
The chargesheet also consists of 1532 documents as evidence with 433 witness statements.
Sources say that CBI could meet the deadline due to the presence of the multidisciplinary team which examined the various parts of the case.
So while SEBI focussed on the capital markets and the issue of insider trading amounting to Rs 700 crore, SFIO focussed on inflation of accounts and the fraudulent methods used by the management.
More than 7000 fake invoices were recovered and evidence of loans arranged for the Raju's family through 327 companies were also gathered. So what did it take to come out with such a voluminous chargesheet within 90 days?
The core investigating team comprised of 11 officers from CBI, 14 officers who formed the multidisciplinary team, 10 junior officers worked on gathering the evidence and and 4 public prosecutors to help with the legal issues.
And ever since the scam broke out, these officers have worked for 16 hours a day sacrificing their weekly offs and public holidays.
But there were a few surprises too in the chargesheet. Contrary to common belief, there was no mention of siphoning of funds to the Maytas companies owned by the promoter family something that the Raju family has been maintaining since the fraud came to light on January 7. "We have filed the chargesheet and the investigations are going on. But as and when facts come out we would file supplementary chargesheets," said VV Laxminarayana, DIG, CBI. With the chargesheet done, the next task before the agency would be to ensure strict sentences against the accused. While there is no evidence of siphoning of funds which could have invited a more harsh sentence for Satyam’s former chairman Raju, CBI maintains that the charge under section 467 of the IPC dealing with forgery of valuable securities alone could give Raju life in prison while the other charges could give him a measly 2-7 years in jail once the charges are proved in court.
NDTV sources

CHANGELING

2009-04-06T18:54:00.001-07:00

Director: Clint Eastwood
Cast: Angelina Jolie
Changeling directed by Clint Eastwood, and set in 1928, is the compelling story of Christine Collins, a telephone company supervisor and single mother, played by Angelina Jolie, who returns from work one day to find that her nine-year-old son has vanished. Despite repeated and tireless efforts on her part to find him, she remains unsuccessful but still unwilling to give up her search, until five months later the Los Angeles Police Department announces that they've found the kid. Only problem is, the boy identified and returned to her is not her son, she insists.
Starting out as a 'lone-woman-versus-the-corrupt-system drama', Changeling metamorphoses into something of a psychological thriller along the way. There are courtroom showdowns, grisly flashbacks and more tearful reunions. Not only does all of this dilute the film's most solid themes of wronged innocence and unaccountable power, it also makes Changeling an exceedingly long movie to watch. The most crippling blow, however, comes in the form of Angelina Jolie's disappointing performance as the distressed mother. Jolie is too restrained, too collected even in the film's more dramatic portions, and is never convincing when she's meant to convey panic or horror over her situation.
Nevertheless, there's an inherent nobility in Changeling, invested by the film's director Clint Eastwood, who shoots the film with warmth and dignity, and recreates Los Angeles of the 20s and 30s with undeniable accuracy. Despite its many flaws, you can recognise immediately why Changeling is still such a worthy watch -- because it's a film that stresses the importance and need for hope, for courage under fire.
I'm going with three out of five for Changeling, it may be unfocused in its plot, but its message is loud and clear. Watch it because it's one of those films that you won't easily get out of your head.

Soros says it: US economy in 'lasting slowdown'

2009-04-06T18:50:00.000-07:00

New York: The US economy is in for "a lasting slowdown" and won't recover this year, while "the banking system as a whole is basically insolvent," billionaire investor George Soros told Reuters Financial Television on Monday.
While nationalisation of banks is "out of the question," he said stress tests being conducted by the US Treasury could be a precursor to a more successful recapitalization. But he warned about the danger of watering down mark-to-market accounting rules, saying this creates conditions for prolonging the life of US 'zombie' banks.
Soros also said the US dollar is under pressure and may eventually be replaced as a world reserve currency, possibly by the IMF's Special Drawing Rights, a synthetic currency basket comprising dollars, euros, yen and sterling.
China recently proposed greater use of Special Drawing Rights, possibly as an eventual global reserve currency. "In the long run, having an international accounting unit other than the dollar may be to our advantage," Soros said. He added that the system that has allowed the United States to spend more than it earns has to be reformed.
"That is coming to an end and it will not be allowed to recur. There will have to be some change." While a global recovery is possible in 2010, Soros said the timing will ultimately depend on the depth of the recession. China, he said, will be the first country to emerge from recession, probably this year, and will spearhead global growth in 2010.
He said world policy-makers are "actually beginning to catch up" with the crisis and efforts to fix structural problems in the financial system. The system was "fundamentally flawed, and there is no returning to where we came from," he said.
In Europe, he said the crisis provides an incentive for countries that use the Euro to remain inside the monetary union, though countries on the periphery still face serious problems. Soros said the Euro has been "a tremendous advantage" to countries that use it, adding there's "no question of a weaker country dropping out."
While additional resources for the International Monetary Fund will help it stabilize struggling Eastern Europe, he said the Baltic states still face "serious problems" and Ukraine is not far from default. Widespread use of credit default swaps has worsened the risks for Europe, he said, though he added that Germany, the euro zone's biggest economy, is becoming more open to offering help.
"Germany, which has been the most reserved about being the deep pocket of the rest of Europe, has recognized that it too has a responsibility toward the new member states," he said.
Germany has been one of the most reluctant major economies to meet U.S. calls for more fiscal stimulus spending to boost the global economy and fight the financial crisis.

(SOURCES : cnn-ibn)

Death toll rises to 8 as 2 more blasts rock Assam

2009-04-06T18:40:00.000-07:00

Guwahati: Four bomb blasts rocked Assam on Monday just a day ahead of Prime Minister Manmohan Singh’s visit to the state.
The four blasts took place in Guwahati, in Dhekiajuli near Tezpur, Mancachar in Dhubri and Udalguri district.
Seven people were killed and 32 others injured in the blast which took place at 1400 hours IST in Guwahati, police said. The bomb was planted in a motorcycle at a parking area near Maligaon Chariali in Guwahati.
Several vehicles and two-wheelers caught fire immediately after the explosion with fire-tenders arriving shortly afterwards.
One of the victims was a student of the Maligaon Primary School. The students were coming out of the school when the bomb exploded.

Two of the dead were identified as Mousum Khatun and Bhupen Kumar.
Complete chaos prevailed in the area with people protesting over repeated blasts in the city. Some protestors even attacked the police and their vehicles. Traffic was thrown out of gear with hundreds of vehicles stranded.
Nine of the injured were admitted to nearby Sanjivani Hospital, two in the adjacent North-East Frontier Railway Headquarters hospital and the rest were sent to Gauhati Medical College and Hospital.
In the second blast at Dhekiajuli, six people were injured when the blast ripped through a crowded marketplace.
One person died in the third blast at Mancachar in Dhubri on the India-Bangladesh border. As per initial reports the fourth blast in Udalguri was a grenade blast outside a police station.
Authorities suspect the hand of United Liberation Front of Asom (ULFA) rebels behind the blast. The banned outfit has had a history of setting off blasts on the eve of their founding day which is on April 7.
The blast site was cordoned off by the security forces suspecting that there could be more bombs.
Meanwhile, Home Secretary has spoken to Assam Chief Secretary following the blasts and has advised him to strengthen security arrangements in Guwahati and other areas.
Manmohan Singh is scheduled to visit Dibrugarh on Tuesday.

(sources CNN-ibn)

Prominence to Nano irks Gujarat diamond workers

2009-04-06T18:34:00.000-07:00

While India Inc and Gujarati middle class celebrated the shifting of the Nano from West Bengal to Gujarat, unorganised labour in the state is upset with the Modi government for laying out the red carpet for the little car.
“The Nano project has come to Gujarat. The state government laid out the red carpet for it. If we were given even 50 per cent of that support the diamond industry would be back on its feet,” said a diamond worker.
The state's 10 lakh diamond workers come from Saurashtra, a region the BJP swept in the 2007 assembly elections after a booming economy had replaced hindutva as Modi's election trump card.
Then came the recession, diamond exports crashed and the highly skilled men were offered work by the government under the NREG. It hurt their asmita.
“The Nano was an external creation, brought in as if an organic growth. The diamond industry is a local creation. People in the diamond industry are saying how is the Nano car preferred to what has been organically created. Nano will be the first threat to Modi,” said Shiv Vishwanathan, social scientist, Ambani Institute, Ahmedabad,
So, will Nano envy become the rallying point for those feeling the heat of recession and for opposition parties looking to stop the seemingly unstoppable chief minister?

(NDTV Sources and Report)

Abhimaan Remake will be sooner

2009-03-31T11:32:00.001-07:00

With every producer and director of fame running to remake old classics, it came as no surprise when director Rajeev Menon said that he intended to remake Abhimaan, the 1973, Amitabh Bachchan-Jaya Bhaduri starrer, which was directed by Hrishikesh Mukherjee. The film's producer, Pawan Kumar, is however, not having any of this.He has claimed that he has the copyright of the film and is the owner of the film. Kumar himself has intentions of remaking the Seventies classic, with the Senior Bachchans playing the parents and the junior Bachchans, Abhishek and Aishwarya Rai playing the lead roles.But Kumar dismisses that as mere talk and says that nothing has been finalised yet. It is believed that that the Big B asked him to find a director who could do full justice to the Hrishikesh Mukherjee classic. But with nothing has yet been finalised.Kumar promises to make an announcement in a little while. He plans to retain some of the old songs to keep the flavour of the film alive.The original's music was composed by the late SD Burman. Its songs still have a lot of appeal.Apparently, besides Menon even Rakesh Mehra wanted to remake the film with AR Rahman composing the music.

2009-03-31T11:26:00.000-07:00

Reese Witherspoon on her new 3-D adventure flick Monsters vs. Aliens, her kids and turning 33.

B-movie monsters must be in your debt, wouldn't ya say?

“I was really into the idea that 1950s B-movie monsters became heroes. I watched a lot of those movies as a kid with my dad. Every Saturday night, they would be on, so it was a really good modern concept and then to put a woman at the center of the film was pretty amazing.”

And your fave was ... ?

“Creature From the Black Lagoon. That was very scary.”

Your kids get that most moms don't get to play superheroes, right?

“I talked to my kids a lot about ‘Who’s your favorite superhero?’ While my son can name 27 different male superheroes, my daughter is like, ‘I don’t know. The girl with the … I can’t remember any of them.’”

And they're dealing with it how?

“My kids managed to maintain their coolness for awhile, but literally it has hit fever pitch at my house. They are rabid, and they wake up in the morning like, ‘When can we watch this movie?’ My daughter, who’s 9 and is trying to be cool, she’s like, ‘It’s OK, it's just ... how many people can I bring to the screening?’ I think she invited the entire third grade. I’m really enjoying this moment because usually my kids think I’m a gigantic dork, and they are so in love with me right now. It is great.”

We bet you have a lot in common with this 49-foot woman, doncha?

“Maybe at the end, [she has] a sort of tenacity, fierceness, taking care of the group. I'm kind of a mother hen that way even on movie sets.”

Give us the gossip on the Europe press tour!

“We got to see a lot of great stuff. In Madrid, we went to the Prada Museum, that was very cool; and in Paris, we got to go to the Musee D'Orse. Mr. Katzenberg is really nice because you can either have lunch and stay in the hotel or he'll say, 'Come on! Let's go see a museum!' and it motivates you to actually do things that are culturally interesting.”

Happy belated birthday! How's 33 treating ya?

“Older, yeah. I think I actually shrink. My mother is now four feet tall … It is a great thing to be able to be doing things with my kids and having them be proud of me. What’s better than feeling like you’ve accomplished things in life?”

Equalism Everywhere

2009-03-31T10:43:00.000-07:00

Women are need to treat equal., because most of the countries they are threating like slaves.

Thus it should be prohibited, they are not like the drugs to use of it and get addict of it.

They are pride and human beings who makes a man to love of it.

Women are treating equal to god in some countries, but even in some countries they treating them as a slavery.

Thus they should take a good steps to prevent of it.

Fashion

2009-03-30T19:59:00.000-07:00

Fashion designing becomes one of the important and essential to design our dresses.
Everyone in this field helps the people to design their own dresses and enables them to fit according to suit of it.

Fashion designing which also gives essential variety of dresses to choose of it. This helps the people overview the dress and if they like of it, they can contact the designers to design for them.

Thus technology develops according to designing field to developed more.

Trading Philosophy

2008-10-30T19:12:00.000-07:00

Don't risk > 10% of your trading capital in a single trade.
use stop loss orders every time.( you should know your loss where the trade starts is not in favour of you.)
Don't overtrade.
Avoid losses while in profits.
avoid entering in a trade if you are unsure about technical parameters.
If you have doubt a stock or a company, don't trade, when you are unsure don't get into the stock. Trade in active markets alone.
your risks should be equally distributed among different markets.
Don't limit your orders. Trade at the markets.
Additional revenues from positive trades take into separate account.
Never trade to scalp a profit.
Never average a loss.
Don't get out due to losing your patient & don't get into it due to waiting eagerly.
Avoid taking small profits and large losses.
Never cancel a stop loss after you have placed it.
Avoid getting in and out of the market too soon.
Eagerly wait to get the money from different sides of the market.
Don't buy just its low & don't sell just its high, look at the past performance & trends.
Never hedge a losing position.
Never change your position without valid reason.
Avoid trading after long periods of success or failure.
Don't guess tops or bottoms.
Don't follow the rumours of others.
Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
When you lose don't blame it on luck.

JAIRAM RAMESH TO ATTEND INDIA ETHIOPIA JOINT TRADE COMMISSION INDIA ETHIOPIA TO INTENSIFY TRADE AND NVESTMENT LINKS

2008-10-08T19:06:00.001-07:00

The fifth meeting of the India-Ethiopia Joint Trade Commission will be held in Addis Ababa (Ethiopia) on 6th & 7th October, 2008. Shri Jairam Ramesh, Minister of State for Commerce & Power, will be leading the Indian delegation comprising of senior officials, businessmen, export promotion councils and bankers.

A number of important bilateral agreements are expected to be signed during Shri Jairam Ramesh’s visit. Among them are pacts to (i) expand the supply of raw skins and hides that are abundantly available in Ethiopia for India’s growing leather manufacturing industry; (ii) to set up an apparel fashion design institute in Ethiopia with the assistance of the Apparel Export Promotion Council (AEPC); and (iii) to set up a 38 Mw hydel project by BHEL/IL&FS. In addition, bilateral agreements on standards, small and medium enterprises and agricultural research are on the anvil. The two countries are also in the advanced stages of finalising a trade agreement to replace the earlier trade agreement signed in November 1982. India is also bidding to participate in Ethiopia’s railway modernisation and expansion programme.

India is the single largest foreign investor in Ethiopia with approvals crossing $ 3.5 billion. Of this, $ 2 billion is in the agriculture and floriculture sector alone. A number of Indian private companies are using Ethiopia as a base for the export of flowers to Europe. Roses are the most important of the flowers being cultivated and exported out of Ethiopia. In the context of India emerging as the single largest foreign investor in Ethiopia, the two countries are negotiating a double taxation avoidance agreement which is expected to be clinched in the next three months. A bilateral investment promotion and agreement has already been signed between the two countries and its implementation will be announced at the 5th meeting of the Joint Trade Commission.

India enjoys a huge trade surplus with Ethiopia (exports in 2007/08 were over $ 400 million and imports around $ 14 million) and hence one of the objectives of Shri Jairam Ramesh’s visit will be to explore new avenues for exports from Ethiopia to India. Apart from raw skins and hides, pulses has been identified as one area. In addition, Ethiopia has large deposits of potash which could be exploited by Indian firms since India imports 100% of its requirements of potassic fertilisers. India has already notified the Duty Free Tariff Preference Scheme for import from 34 LDCs including Ethiopia following its announcement by Dr. Manmohan Singh at the India-Africa Forum Summit held in New Delhi in April 2008.

IMPORT OF SENSITIVE ITEMS DURING APRIL-JULY 2008

2008-10-08T19:05:00.000-07:00

The total import of sensitive items for the period April-July 08 has been Rs.9696 crore as compared to Rs.8722 crore during the corresponding period of last year thereby showing an increase of 11.2%. The gross import of all commodities during same period of current year was Rs.421541 crore as compared to Rs.306946 crore during the same period of last year. Thus import of sensitive item constitutes 2.8% and 2.3% of the gross imports during last year and current year respectively.

Imports of edible oil, milk & milk products and food grains have shown a decline at broad group level during the period. Imports of items viz. fruits & vegetables (including nuts), cotton & silk, automobiles, products of SSI, spices, rubber, Alcoholic beverages, marble & Granite and Tea & Coffee have shown increase during the period under reference.

In the edible oil segment, the import has decreased from Rs.3777.8 crore last year to Rs.3698.0 crore for the corresponding period of this year. The import of crude edible oil has gone down by 4.7% and that of refined gone up by 19.9%. The decrease in edible oil import is mainly due to significant fall in import of Soya-bean crude oil which has gone down by 55%.

Imports of sensitive items from Indonesia, Myanmar, China P RP, United States of America, Cote D’ Ivoire, Germany, Malaysia, Benin, Thailand, Australia, Egypt, Japan, Ghana, Korea RP, United Kingdom etc. have gone up while those from Argentina, Canada, Sri Lanka DSR and Brazil etc. have shown a decrease.

KAMAL NATH GREATER ENGAGEMENT NEEDED IN INFRASTRUCTURE AND IT

2008-10-08T18:58:00.000-07:00

TARGET OF EURO 20 BILLION TO BE REACHED BY 2012, SAYS KAMAL NATH GREATER ENGAGEMENT NEEDED IN INFRASTRUCTURE AND IT

Date : 06 Oct 2008
Location :

Shri Kamal Nath, Union Minister of Commerce & Industry, has said that reaching the trade target of Euro 20 billion by 2012 appears well within our sight, and the strength of the relationship is evident from the healthy growth in bilateral trade. During the interaction with Mr. Christian Wulff, Minister-President of the State of Lower Saxony (Germany), here today, Shri Kamal Nath informed that the State of Lower Saxony could be an important trading partner of India in sectors like agriculture, mining, crude oil, manufacturing, aviation, shipbuilding, biotechnology, steel, tourism industry and telecommunication. During discussion both sides agreed to enhance bilateral relations between the State of Lower Saxony and India.

Shri Kamal Nath stated that India’s priority is to carry forward its reform process so as to accelerate growth in an inclusive manner. Bilateral trade between India and Germany is showing a consistent growth. During the year 2007-08, bilateral trade was of US $ 14.7 billion as against US $ 11.5 billion during 2006-07. India’s major exports to Germany are: readymade garments, machinery & instruments, electronic goods, transport equipments while India’s major imports from Germany are: machinery (except electrical & electronics), iron & steel, machine tools, organic chemicals etc.

As regards WTO negotiations, Shri Kamal Nath said that: “We remain committed to a rule-based multilateral trading system. It is important that the development dimension of trade talks remains at the centre. For India and other developing countries, putting the livelihood of hundreds of farmers at risk would be unacceptable. There is a need for greater understanding from the developed countries.”

Shri Kamal Nath, during the meeting, emphasised that the State of Lower Saxony should take advantage of India’s investor-friendly climate and German companies should show greater engagement with India, especially in the sectors of infrastructure, information technology, bio-technology, automobile industry etc. In the comparative list of countries for FDI approvals, Germany ranks 5th. FDI approvals for Germany during the period 1999 to March 2008 was of the order of US $ 2.90 billion and the actual inflow was of the order of US $ 2.20 billion.

Basics abt Computer Science

2008-09-10T09:39:00.000-07:00

AGP

Accelerated Graphics Port is a type of expansion card slot on the mother board that is optimized to work with high performance video cards. They enable better viewing of 3D graphics and full motion video on your display.

BIOS

Basic Input Output System is code used when a PC first starts up. It contains configuration information about all the Input and Output devices in the PC so that the processor chip knows how to connect to and work with them.

BIT

This is binary digit and is the smallest piece of information a computer uses. A bit is always in one of two states, either 0 or 1, except for the tiny instant of time required to switch from one state to the other.

BYTE

A byte is eight bits. The data and instructions (code) that a CPU uses are coded into bytes. For example capital letter 'A' in ASCII (PC) code is byte 0100 0001. A lower case 'a' is byte 0110 0001.

BROWSER

Software on a computer used to request and display web pages from a Server.

CABLE MODEM

A type of modem that provides very high speed access to the Internet over the same cable that your cable TV service uses. Rates are asymmetric. This means that downloads are much faster than uploads. Typical download rates are 2 to 3 Mbps and uploads are in the 500Kbs range. This is blazing speed compared to a 56Kbps dial-up modem.

CACHE

Cache is a small fast SRAM type of memory. It prevents CPU slowdown, which happens when the CPU has to wait on slower devices like RAM memory and the hard drive. There are two levels of cache.

Level 1 or L1 cache is a small fast memory located on the same chip as the CPU. When files are first requested by the CPU they are read into the CPU from the hard drive and written into the L1 cache at the same time. When the CPU needs data again it checks the L1 cache and if it finds it there it gets it instantly. If not, it looks successively in the L2 cache, RAM and finally the hard drive, each of which is a little slower in delivering the data the CPU has requested.

Economic Indicators from 1991

2008-09-09T22:23:00.000-07:00

The Indian economy has undergone substantial changes since the introduction of economic reforms in 1991. These reforms were a comprehensive effort consisting of three main components namely, liberalisation, privatisation and globalisation. They included various measures like deregulating the markets and encouraging private participation; trade liberalisation; dismantling the restrictions on domestic and foreign investments; reforming the financial sector and the tax system, etc. All such policy initiatives radically changed the economic set-up of the country and integrated it with the rest of the world. Thus, India was placed in a globally competitive position so as to fully utilise its potentials and opportunities for rapid growth of the economy.

Net National Product (NNP) at factor cost (at 1993-94 prices) increased from 0.5 per cent in 1991-92 to 6.3 per cent in 1999-2000. It increased to 8.8 percent in 2003-04 at 1999-2000 prices. Similarly, per capita NNP increased from -1.5 per cent to 4.4 percent and then to 7.0 percent during the same period. Gross National Product (GNP) at factor cost (at 1993-94 prices) increased from 1.1 per cent in 1991-92 to 6.2 percent in 1999-2000. It increased to 8.7 percent in 2003-04 at 1999-2000 prices. Gross Domestic Product (GDP) at factor cost ( at 1999-2000 prices) has increased from 4.4 percent in 2000-01 to 7.5 per cent in 2004-05.

The industrial sector has been going through a process of restructuring and consolidation after liberalisation. The industries have responded to the reforms through mergers and acquisitions, adoption of cost cutting measures, foreign collaboration, technology upgradation and outward orientation in sectors such as cement, steel, aluminium, pharmaceuticals, and automobiles. Industrial growth increased sharply in the first five years after the reforms, but then slowed to an annual rate of 4.5 percent in the next five years. From low growth rate of 2.7 per cent in 2001-02, the industry sector grew at a rate of 7.1 per cent in 2002-03 and further to 9.8 per cent in 2004-05.

There has been steady and continuous rise in supply of money in the economy since initiation of reforms. Reserve Money(Mo) has increased from Rs.99,505 crores in 1991-92 to Rs.573066 crores (Provisional) in 2005-06. Narrow money (M1) has increased from Rs.114406 crores to Rs. 825245 crores (Provisional), while, broad money (M3) has increased from Rs.317049 crores to Rs.2729535 crores (Provisional) during the same period.

Low and volatile growth rates in Indian agriculture and allied sectors was reflected in the average annual growth rate of value added in the sector declining from 4.7 per cent during the Eighth Plan (1992-1997) to 2.1 per cent during the Ninth Plan (1997-2002). From negative growth rate of -7.2 percent in 2002-03, the agriculture sector grew at a rate of 10.0 per cent in 2003-04 and at a rate of 6.0 per cent in 2005-06.

As a proportion of GDP, the share of exports, which had grown from 5.8 per cent in 1990-91 to 12.2 per cent in 2004-05, grew further to 13.1 per cent in 2005-06. The corresponding rise in imports was from 8.8 per cent in 1990-91 to 17.1 per cent in 2004-05 and further to 19.5 per cent in 2005-06. Thus, trade deficit as a proportion of GDP, which had declined from 3.0 per cent in 1990-91 to 2.1 per cent in 2002-03, widened to 4.9 per cent in 2004-05 and further to 6.4 per cent in 2005-06.

Performance of the Indian economy on the inflation front, with price stability as one of the prime objectives of the reform process has been satisfactory, particularly after the mid 1990s. The annual average inflation rate based on Wholesale Price Index (WPI) was 10.6 per cent between 1991-96, which fell down to 5.1 per cent in the period 1996-2001 and then to 4.7 per cent in 2001-06.

There are various economic indicators which highlight the performance of the economy since 1991

Sources: http://business.gov.in/indian_economy/eco_indicators.php

Indian Economy

2008-09-09T22:22:00.000-07:00

The Indian economy is the fourth largest economy of the world on the basis of Purchasing Power Parity (PPP). It is one of the most attractive destinations for business and investment opportunities due to huge manpower base, diversified natural resources and strong macro-economic fundamentals. Also, the process of economic reforms initiated since 1991 has been providing an investor-friendly environment through a liberalised policy framework spanning the whole economy.

The growth and performance of the Indian economy in the world market is explained in terms of statistical information provided by the various economic parameters. For example, Gross National Product (GNP), Gross Domestic product (GDP), Net National Product (NNP), per capita income, Gross Domestic Capital Formation (GDCF), etc. are the various indicators relating to the national income sector of the economy. They provide a wide view of the economy including its productive power for satisfaction of human wants.

In the industrial sector, the Index of Industrial Production (IIP) is a single representative figure to measure the general level of industrial activity in the economy. It measures the absolute level and percentage growth of industrial production.

The four main monetary aggregates of measures of money supply which reflect the state of the monetary sector are:- (i) M1 (Narrow money)= Currency with the public + demand deposits of the public; (ii) M2= M1 + Post Office Savings deposits; (iii) M3 (Broad money)= M1 + time deposits of the public with banks; and (iv) M4= M3 + Total post office deposits.

Price movement in the country is reflected by the wholesale price index (WPI) and the consumer price index (CPI). WPI is used to measure the change in the average price level of goods traded in the wholesale market. While, the Consumer Price Index (CPI) captures the retail price movement for different sections of consumers. There are at present four consumer price indices covering different socio-economic groups in the economy. These four indices are Consumer Price Index for Industrial Workers (CPI-IW); Consumer Price Index for Agricultural Labourers (CPI-AL); Consumer Price Index for Rural Labourers (CPI -RL) and Consumer Price Index for Urban Non-Manual Employees (CPI-UNME).

All such economic indicators not only measure/analyse the present performance of an economy but also help in predicting and forecasting its future growth prospects.

Sources: http://business.gov.in/indian_economy/index.php

Internal Revenue Service(IRS) finalises Tax-Exempt Form 990 Instructions

2008-09-09T09:44:00.000-07:00

IRS has released its revised instructions for the redesigned Form 990 that tax-exempt organisations must submit. The latest version reflects a greater level of detail reporting than the IRS has been requesting. Form 990 had previously not been major revisions since 1979. The IRS also expects to release instructions for the short form, 990-EZ. As part of the phase-in of the redesigned Form 990-EZ for 2007 will be eligible to file Form 990-EZ or Form 990 for 2008

How to apply for a Work Visa?

2008-09-08T10:08:00.000-07:00

Every year United States allows 65,000 work visas to be issued to various professionals. Finding of a willing sponsor is just the beginning of the long road, which is followed by filing of work visa application with USCIS(United States Citizenship and Immigration Services).

USCIS allows filing of H-1B visa applications six months prior to the commencement of next fiscal year. Fiscal year in united states starts from October 1. For the fiscal year 2009-10, H-1B application can be filed with USCIS on 01 April 2009.

Due to overwhelming response, generally within few days of its opening, quota of 65k is oversubsribed. In a scenario of oversubsrciption, USCIS picks up the successful candidates through computer generated programs on random basis. Application of the unsuccessful candidates are denied and returned along with the application money paid by them. After the selection of successful candidates, approval of application generally takes a few months time. However, if the application is filed by paying an additional fee to USCIS with a 'Premium Processing' request, it can be processed within few weeks from the date it is filed.

In addition, USCIS issues 20,000 H-1B visas also to those who have earned advance degree in US. According to the USCIS announcement on tuesday, april 8,2008, they received more than 65000 applications in regular cap numbers as well as 20000 U.S. earned advanced degree cap numbers for the fiscal year 2008-09. When the USCIS receives more than 20000 cap numbers for U.S. earned advance degree cap H-1B pletitions. Then those U.S. earned cases, which failed to be selected within the 20000 numbers, are added to the pool of regular cap cases and the agency goes through the random selection process for the 65000 regular cap cases. It is thus obvious that the U.S. earned advance degree cap filers learn their luck or bad luck ahead of the regular cap filers.

RBI warns of assets & liabilites mismatch

2008-09-08T10:05:00.000-07:00

Expressing concern over the tendency of some banks to lend too much compared to their sources of funds,, the reserve bank warned that it may start supervisory review of these banks. Indian Banks Association, Chairman said the RBI's caution to banks came as too much credit expansion would nullify the effect of RBI's tigher monetary slance of RBI.

IT industry seeks clarity on taxation

2008-09-08T09:56:00.000-07:00

Hit by imposition of service tax, the IT industry has asked the government to come out with a clear classification of packaged software -- explaining if this item should be listed under goods or services, lack of clarity and imposition of service tax on packaged software could lead to increased litigation in the sector, industry expects said

Press Note-: Sale (Re-Issue) of Government Stocks

2008-09-06T01:11:00.000-07:00

Government of India have announced the sale (re-issue) of “8.24 percent Government Stock 2018” for a notified amount of Rs. 5,000 crore (nominal) through a price based auction using multiple price method. Government of India have also announced the sale (re-issue) of “7.95 percent Government Stock 2032” for a notified amount of Rs. 3,000 crore (nominal) through a price based auction using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on September 12, 2008 (Friday).

Up to 5% of the notified amount of the sale of both the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India, Mumbai Office (Public Debt Office), Fort, Mumbai-400 001 and RBI website www.rbi.org.in should be submitted to that Office on September 12, 2008. The NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M.

The result of the auctions will be announced on September 12, 2008 and payment by successful bidders will be during banking hours on September 15, 2008 (Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

DEPARTMENT OF ECONOMIC AFFAIRS, MINISTRY OF FINANCE

New Delhi: Bhadrapada 14, 1930; September 5, 2008

BSC/SS/GN-219/08

Cabinet approves Company Bill, 2008

2008-09-06T01:07:00.000-07:00

The much awaited Company Bill (The Company Bill, 2008) has been approved by the Union Cabinet on August 29, 2008. This is now scheduled to be tabled in the Parliament in October, 2008 and proposes to replace the existing Companies Act 1956. Until such time that the Company Bill 2008 is approved by the Parliament, the existing provisions of the Companies Act, 1956, will continue to apply.

While substantially reducing the existing 800 plus provisions, the Company Bill, 2008 seeks to introduce changes which would enable the Indian corporate sector foster entrepreneurship, investment and growth.

The highlights of the proposed amendments have been summarised in this alert.

The ensuing table provides a summary of some significant changes which have been proposed, while drawing a comparison with the existing provisions in the Companies Act, 1956.

(Existing Provisions)
(Revised Provisions)

· a few internal corporate processes (such as appointment of managerial personnel and remuneration thereof) are controlled by the Central Government (Existing Provisions)
· such powers will now be exercised by the shareholders (Revised Provisions)

· one person company is not allowed (Existing Provisions)
· one person company is allowed (Revised Provisions)

· companies, associations and partnerships of more than 10 people (for banking companies the minimum limit is 20) must be registered (Existing Provisions)
· companies, associations and partnerships of more than 100 people could be registered and no ceiling as far as professions regulated by specific enactments are concerned.(Revised Provisions)

· there are no provisions for the appointment of independent directors; however SEBI governs these for listed companies (Existing Provisions)
· 33% of the directors should be independent (Revised Provisions)

· all the directors of a company can be foreign directors (Existing Provisions)
· at least one director has to be Indian(Revised Provisions)

· companies are allowed to raise deposits from the public (Existing Provisions)
· companies are not allowed to raise deposits from the public, except for deposits raised through other specific enactments(Revised Provisions)

· insider trading regulations are governed by SEBI (Existing Provisions)
· insider trading by company personnel is recognized as a criminal liability (Revised Provisions)

· unlike accounting standards, there is no specific recognition of auditing standards (Existing Provisions)
· recognition is provided to both-auditing and accounting standards (Revised Provisions)

· no compulsory consolidation; except for listed companies which are governed by SEBI (Existing Provisions)
· consolidation of financial statements is mandatory(Revised Provisions)

· there are different forums for mergers & approvals (Existing Provisions)
· there is a single forum for mergers and acquisitions(Revised Provisions)

· claim/s of investor/s for dividend etc; after seven years are extinguished (Existing Provisions)
· claim/s of investor/s for dividend etc are not extinguished and Investors Education and Protection Fund now being administered by a Stat Authority (Revised Provisions)

· no shareholder's association can take legal action against fraudulent action by companies (Existing Provisions)
· shareholder's association/s can be enabled to take legal action against fraudulent action by companies(Revised Provisions)

· company is not identified as a separate entity from the officers in default, for imposition of monetary penalties (Existing Provisions)
· company is recognized as separate identity from the officers in default, for imposition of monetary penalties(Revised Provisions)

· the levy of additional fee for procedural offences is incorporated in various sections and these vary, as per the discretion of the Registrar of Companies (Existing Provisions)
· the levy of additional fee for procedural offences is enabled through various rules and these are non-discretional in nature(Revised Provisions)

· there are no special courts for offences in relation to amalgamations and mergers, reduction of capital, insolvency etc. (Existing Provisions)
· special courts to deal with such offences. (Revised Provisions)



In addition, the following significant provisions have been proposed:



· a single, comprehensive, legal framework administered by the Central Government for all aspects of internal governance of corporate entities

· an easy transition of companies to the new framework and from one type of company to another

· statutory recognition to audit, remuneration and stakeholders grievances committees of the

Board and the Chief Executive Officer, the Chief Financial Officer and the Company Secretary being recognised as Key Managerial Personnel

· a separate framework for enabling fair valuations in companies for various purposes; and the appointment of valuers in this respect, by audit committees

· a revised framework for regulation of insolvency, including rehabilitation, winding up etc, in a time bound manner

· a more effective regime for inspections and investigations of companies for levy of penalties



Disclaimer

The information provided in this alert has been collated from publicly available sources and should not be constituted as an opinion or used as a substitute for professional advice. Additional information relating to the Companies Bill 2008 can be accessed from the link below:

http://pib.nic.in/release/release.asp?relid=42067

Companies Bill, 2008

2008-09-06T01:02:00.000-07:00

The Union Cabinet today gave its approval for introduction of the Companies Bill, 2008 in the Parliament to replace the Companies Act, 1956, the existing statute for regulation of companies in the country and considered to be in need of comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally.

PRESS RELEASE

Sub: The Companies Bill, 2008

The Ministry of Corporate Affairs took up a comprehensive revision of the Companies Act, 1956 (the Act) in 2004 keeping in view that not only had the number of companies in India expanded from about 30,000 in 1956 to nearly 7 lakhs, Indian companies were also mobilizing resources at a scale unimaginable even a decade ago, continuously entering into and bringing new activities into the fold of the Indian economy. In doing so, they were emerging internationally as efficient providers of a wide range of goods and services while increasing employment opportunities at home. At the same time, the increasing number of options and avenues for international business, trade and capital flows had imposed a requirement not only for harnessing entrepreneurial and economic resources efficiently but also to be competitive in attracting investment for growth. These developments necessitated modernization of the regulatory structure for the corporate sector in a comprehensive manner.

2. Earlier, a Bill called Companies (Amendment) Bill, 2003 had been introduced by M/o Corporate Affairs (MCA) (then Department of Company Affairs) in the Rajya Sabha on 7.5.2003. Later on, a large number of changes were found to be necessary in the Bill. A decision was, therefore, taken to carry out a comprehensive review of the Companies Act, 1956 and to introduce a new Companies Bill for the consideration of the Parliament.

3. The review and redrafting of the Companies Act, 1956 was taken up by the Ministry of Corporate Affairs on the basis of a detailed consultative process. A `Concept Paper on new Company Law’ was placed on the website of the Ministry on 4th August, 2004. The inputs received were put to a detailed examination in the Ministry. The Government also constituted an Expert Committee on Company Law under the Chairmanship of Dr. J.J. Irani on 2nd December 2004 to advise on new Companies Bill. The Committee submitted its report to the Government on 31st May 2005. Detailed consultations were also taken up with various Ministries, Departments and Government Regulators. The Bill was thereafter drafted in consultation with the Legislative Department of the Central Government.

4. The Companies Bill, 2008 seeks to enable the corporate sector in India to operate in a regulatory environment of best international practices that fosters entrepreneurship, investment and growth and provides for :-

(i) The basic principles for all aspects of internal governance of corporate entities and a framework for their regulation, irrespective of their area of operation, from incorporation to liquidation and winding up, in a single, comprehensive, legal framework administered by the Central Government. In doing so, the Bill also harmonizes the Company law framework with the imperative of specialized sectoral regulation

(ii) Articulation of shareholders democracy with protection of the rights of minority stakeholders, responsible self-regulation with disclosures and accountability, substitution of government control over internal corporate processes and decisions by shareholder control. It also provides for shares with differential voting rights to be done away with and valuation of non-cash considerations for allotment of shares through independent valuers.

(iii) Easy transition of companies operating under the Companies Act, 1956, to the new framework as also from one type of company to another.

(iv) A new entity in the form of One-Person Company (OPC) while empowering Government to provide a simpler compliance regime for small companies. Retains the concept of Producer Companies, while providing a more stringent regime for not-for–profit companies to check misuse. No restriction proposed on the number of subsidiary companies that a company may have, subject to disclosure in respect of their relationship and transactions/dealings between them.

(iv) Application of the successful e-Governance initiative of the Ministry of Corporate Affairs (MCA-21) to all the processes involved in meeting compliance obligations. Company processes, also to be enabled to be carried out through electronic mode. The proposed e-Governance regime is intended to provide for ease of operation for filing and access to corporate data over the internet to all stakeholders, on round the clock basis.

(v) Speedy incorporation process, with detailed declarations/ disclosures about the promoters, directors etc. at the time of incorporation itself. Every company director would be required to acquire a unique Directors identification number.

(vi) Facilitates joint ventures and relaxes restrictions limiting the number of partners in entities such as partnership firms, banking companies etc. to a maximum 100 with no ceiling as to professions regulated by Special Acts.

(vii) Duties and liabilities of the directors and for every company to have at least one director resident in India. The Bill also provides for independent directors to be appointed on the Boards of such companies as may be prescribed, along with attributes determining independence. The requirement to appoint independent directors, where applicable, is a minimum of 33% of the total number of directors.

(ix) Statutory recognition to audit, remuneration and stakeholders grievances committees of the Board and recognizes the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Company Secretary as Key Managerial Personnel (KMP).

(x) Companies not to be allowed to raise deposits from the public except on the basis of permission available to them through other Special Acts. The Bill recognizes insider trading by company directors/KMPs as an offence with criminal liability.

(xi) Recognition of both accounting and auditing standards. The role, rights and duties of the auditors defined as to maintain integrity and independence of the audit process. Consolidation of financial statements of subsidiaries with those of holding companies is proposed to be made mandatory.

(xii) A single forum for approval of mergers and acquisitions, along with concept of deemed approval in certain situations.

(xiii) A separate framework for enabling fair valuations in companies for various purposes. Appointment of valuers is proposed to be made by audit committees.

(xiii) Claim of an investor over a dividend or a security not claimed for more than a period of seven years not being extinguished, and Investor Education and Protection Fund (IEPF) to be administered by a statutory Authority.

(xv) Shareholders Associations/Group of Shareholders to be enabled to take legal action in case of any fraudulent action on the part of company and to take part in investor protection activities and ‘Class Action Suits’. (xvi) A revised framework for regulation of insolvency, including rehabilitation, winding up and liquidation of companies with the process to be completed in a time bound manner. Incorporates international best practices based on the models suggested by the United Nations Commission on International Trade Law (UNCITRAL).

(xvii) Consolidation of fora for dealing with rehabilitation of companies, their liquidation and winding up in the single forum of National Company Law Tribunal with appeal to National Company Law Appellate Tribunal. The nature of the Rehabilitation and Revival Fund proposed in the Companies (Second Amendment) Act, 2002 to be replaced by Insolvency Fund with voluntary contributions linked to entitlements to draw money in a situation of insolvency.

(xviii) A more effective regime for inspections and investigations of companies while laying down the maximum as well as minimum quantum of penalty for each offence with suitable deterrence for repeat offences. Company is identified as a separate entity for imposition of monetary penalties from the officers in default. In case of fraudulent activities/actions, provisions for recovery and disgorgement have been included.

(xix) Levy of additional fee in a non-discretionary manner for procedural offences, such as late filing of statutory documents, to be enabled through rules. Defaults of procedural nature to be penalized by levy of monetary penalties by the Registrars of Companies. The appeals against such orders of Registrars of Companies to lie with suitably designated higher authorities.

(xx) Special Courts to deal with offences under the Bill. Company matters such as mergers and amalgamations, reduction of capital, insolvency including rehabilitation, liquidations and winding up are proposed to be addressed by the National Company Law Tribunal/ National Company Law Appellate Tribunal.