Feature Stories Feature Stories Print This PagePrint This Page E-Mail This PageE-Mail This Page Bookmark and Share CNN's "Impact Your World" Features Carter Center Trachoma Control Program August 5, 2009 Trachoma is the world's leading cause of "preventable" blindness, yet it costs 10 million people their eyesight. The Carter Center, with partner organizations and community health workers in six African nations, is working to carry out simple solutions to prevent this disease affecting the world's poorest and most forgotten people. Click video player to watch CNN's coverage of this pioneering effort in Ethiopia. To support Carter Center efforts such as this, click here >


Feature Stories
Feature Stories
CNN's "Impact Your World" Features
Carter Center Trachoma Control Program
August 5, 2009



Trachoma is the world's leading cause of "preventable" blindness, yet it costs 10 million people their eyesight.  The Carter Center, with partner organizations and community health workers in six African nations, is working to carry out simple solutions to prevent this disease affecting the world's poorest and most forgotten people.

Click video player to watch CNN's coverage of this pioneering effort in Ethiopia.

To support Carter Center efforts such as this, click here >

Meaning Of Business Finance — Presentation Transcript

  • 1. Meaning of Business Finance Business Finance is that business activity which is concerned with the acquisition and conservation of capital funds in meeting financial needs and overall objectives of business enterprises.
  • 2. What is Financial Management? Financial Management is broadly concerned with the acquisition and use of funds by a business firm. Its scope may be defined in terms of the following questions. How large should the firm be and how fast should it grow? What should be the composition of the firm’s assets? What should be the mix of the firm’s financing ? How should the firm analyze, plan and control its financial affairs
  • 3. Financial Decisions Investment Decision Dividend Decision Financing Decision Capital Budgeting Cost of capital Working Capital Management Capital Structure
  • 4. SCOPE AND FUNCTIONS OF FINANCIAL MANAGEMENT Traditional Approach Modern Approach
  • 5. Traditional Approach The traditional approach, which was popular in the early stage, limited the role of financial management to raising and administering of funds needed by the corporate enterprises to meet their financial needs. It deals with the following aspects. Arrangement of funds from financial institutions Arrangement of funds through financial instruments like share, bonds etc/. Looking after the legal and accounting relationship between a corporation and its sources of funds.
  • 6. Main limitations of Traditional Approach Outsider-looking-in-approach Ignored routine problems Ignored non-corporate enterprise. Ignored working capital financing No Emphasis on allocation of funds Time value of money is not considered
  • 7. Modern Approach According to modern approach the term financial management provides a conceptual and analytical framework for financial decision-making . That means, the finance function covers both acquisition of funds as well as their allocation. The new approach views the term financial management in a broader sense. It is viewed as an integral part of over-all management.
  • 8. Financial management, in the modern sense of the term, divided into four major decisions The investment decision The financing decision The dividend policy decision The funds requirement decision.
  • 9. OBJECTIVE OF FINANCIAL MANAGEMENT Profit Maximization Wealth Maximization Economic Value Added Focus on stakeholders
  • 10. Drawbacks of Profit maximization Ambiguity Timing of benefits Quality of benefits
  • 11. Wealth Maximization Maximizes the net present value of a course of action to shareholders. Accounts for the timing and risk of the expected benefits. Benefits are measured in terms of cash flows. Fundamental objective—maximize the market value of the firm’s shares.
DK SETT
Pgdm IInd sem

Sahara India to renew sponsorship of Indian hockey

NEW DELHI: After pulling out of cricket, the national obsession, Sahara India is all set to sign a five-year contract to renew its sponsorship deal for the national sport, hockey.

Hockey India (HI) secretary general Narinder Batra told IANS that Sahara has decided to renew its sponsorship contract with men and women's in both senior and junior categories.

"We have not decided the final figures but there will be a substantial hike in the new contract. We will make an official announcement soon," Batra told IANS.

Asked how much the new sponsorship deal would be worth, Batra said: "We are still working out the final figures."

Sources in the Sahara told IANS that the new contract would be anywhere between Rs.14-15 crore per annum, which would be a huge jump from Rs.3 crore.

Sahara's association with the Indian hockey team as a national sponsor started in 2003 following the pullout of Castrol, when the Indian Hockey Federation (IHF) was running the game in the country. The eight-year contract ended in 2011 and the extended six-month period also ended in January.

The Team India will be seen sporting the Sahara India logo during the Olympic qualifiers for both men and women here Feb 18-26.

Sahara decision to sponsor Indian hockey comes in the wake of its pull-out both as the chief sponsor of the Board of Control for Cricket in India ( BCCI) after 11 years of association and as the owner of Pune Warriors franchise in the Indian Premier League ( IPL).                                            





NAME RABINDRA KUMAR COURSE PGDM  2ND SEM

Per capita income may cross Rs 60K

Syrian President Bashar al-Assad has turned to his father’s playbook as he seeks to end an uprising that threatens his family’s 40-year reign.
The regime’s increasing brutality is reminiscent of 1982 when Hafez al-Assad crushed a rebellion in the city of Hama, killing thousands. “Inflicting horror is hereditary in Damascus,” French Ambassador Gerard Araud told the United Nations Security Council Feb. 4. “The father killed en masse, and the son is no different.”
Assad is using tanks and artillery in cities where protesters are calling for the end of his rule. At least 174 people were killed on Feb. 4, said the U.K.-based Syrian Observatory for Human Rights, making it one of the deadliest days in the 11-month revolt.
“Thirty years after his father massacred tens of thousands of innocent Syrian men, women, and children in Hama, Bashar al- Assad has demonstrated a similar disdain for human life,” U.S. President Barack Obama said the same day.
Diplomatic efforts to stem the bloodshed broke down Feb. 4, when Russia and China vetoed a Security Council resolution by Western and Arab countries to facilitate a political transition. The prospect of civil war is growing, as Al Arabiya reported defecting Syrian army units are taking tanks with them.
Obama has dismissed the idea of using a foreign military force to end the conflict that the UN

DHANANJAY SINGH    PGDM II SEM.

GOM OKAYS DIRECT ATF IMPORT, JET AIR , KFA FLY HIGH


Shares of Jet Airways rose 8.15% to Rs 322 after the  Group of Ministers (GoM) okayed direct import of aviation turbine fuel (ATF), which contributes around 40% to the overall operating cost to an airline.
Though the GoM's decision needs a cabinet nod, airlines are hopeful that their long term demand of importing jet fuel will be finally met by the government
Meanwhile, shares of Kingfisher Airlines also climbed 12% to Rs 29.20 post this announcement. SpiceJet too followed trend by rising 10% to Rs 26.90.
Airlines have been collectively lobbying with the government to allow them to import ATF directly, so that they can save on sales tax which varies between 4% to 33% across states in India. Due to this uneven tax regime prevalent in the country, airlines have seen their fuel cost go up atleast 30% year-on-year.
ATF on an average cost around Rs 62,000 a kilolitre in India and is atleast 60% higher then what global carriers pay in West Asia or even South East Asia.
Airlines have been lobbying with the government to either introduce a common sales tax regime of 4% across India or to allow them import fuel directly so that they bring ATF expense under control.
 Infact, two year ago, airlines even threatened to stop operations for a day just to mark their protest against the high tax regime.
But they had to revoke their decision following the government assuring them to come out with a solution on the issue. But, since various states collected crores of rupees by way of taxes on ATF, they did not agree to bring down their tax structure as it would mean lower cash inflow.
However, airlines did not give up and time and again have been petitioning to the government to sort out the issue as high fuel cost has been hurting their profitability. Infact, Jet and SpiceJet, both have held high fuel cost responsible for their December quarter losses.
BY:
JASLEEN KAUR
PGDM II SEM



Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions- Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures). Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two- Highly geared companies- Those companies whose proportion of equity capitalization is small. Low geared companies- Those companies whose equity capital dominates total capitalization. For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company. Factors Determining Capital Structure Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. It refers to additional profits that equity shareholders earn because of issuance of debentures and preference shares. It is based on the thought that if the rate of dividend on preference capital and the rate of interest on borrowed capital is lower than the general rate of company’s earnings, equity shareholders are at advantage which means a company should go for a judicious blend of preference shares, equity shares as well as debentures. Trading on equity becomes more important when expectations of shareholders are high. Degree of control- In a company, it is the directors who are so called elected representatives of equity shareholders. These members have got maximum voting rights in a concern as compared to the preference shareholders and debenture holders. Preference shareholders have reasonably less voting rights while debenture holders have no voting rights. If the company’s management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares. Flexibility of financial plan- In an enterprise, the capital structure should be such that there is both contractions as well as relaxation in plans. Debentures and loans can be refunded back as the time requires. While equity capital cannot be refunded at any point which provides rigidity to plans. Therefore, in order to make the capital structure possible, the company should go for issue of debentures and other loans. Choice of investors- The company’s policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors. Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the company’s capital structure generally consists of debentures and loans. While in period of boons and inflation, the company’s capital should consist of share capital generally equity shares. Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures. Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits. Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases. Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions- Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures). Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two- Highly geared companies- Those companies whose proportion of equity capitalization is small. Low geared companies- Those companies whose equity capital dominates total capitalization. For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company. Factors Determining Capital Structure Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. It refers to additional profits that equity shareholders earn because of issuance of debentures and preference shares. It is based on the thought that if the rate of dividend on preference capital and the rate of interest on borrowed capital is lower than the general rate of company’s earnings, equity shareholders are at advantage which means a company should go for a judicious blend of preference shares, equity shares as well as debentures. Trading on equity becomes more important when expectations of shareholders are high. Degree of control- In a company, it is the directors who are so called elected representatives of equity shareholders. These members have got maximum voting rights in a concern as compared to the preference shareholders and debenture holders. Preference shareholders have reasonably less voting rights while debenture holders have no voting rights. If the company’s management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares. Flexibility of financial plan- In an enterprise, the capital structure should be such that there is both contractions as well as relaxation in plans. Debentures and loans can be refunded back as the time requires. While equity capital cannot be refunded at any point which provides rigidity to plans. Therefore, in order to make the capital structure possible, the company should go for issue of debentures and other loans. Choice of investors- The company’s policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors. Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the company’s capital structure generally consists of debentures and loans. While in period of boons and inflation, the company’s capital should consist of share capital generally equity shares. Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures. Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits. Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases. Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions- Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures). Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two- Highly geared companies- Those companies whose proportion of equity capitalization is small. Low geared companies- Those companies whose equity capital dominates total capitalization. For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company. Factors Determining Capital Structure Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. It refers to additional profits that equity shareholders earn because of issuance of debentures and preference shares. It is based on the thought that if the rate of dividend on preference capital and the rate of interest on borrowed capital is lower than the general rate of company’s earnings, equity shareholders are at advantage which means a company should go for a judicious blend of preference shares, equity shares as well as debentures. Trading on equity becomes more important when expectations of shareholders are high. Degree of control- In a company, it is the directors who are so called elected representatives of equity shareholders. These members have got maximum voting rights in a concern as compared to the preference shareholders and debenture holders. Preference shareholders have reasonably less voting rights while debenture holders have no voting rights. If the company’s management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares. Flexibility of financial plan- In an enterprise, the capital structure should be such that there is both contractions as well as relaxation in plans. Debentures and loans can be refunded back as the time requires. While equity capital cannot be refunded at any point which provides rigidity to plans. Therefore, in order to make the capital structure possible, the company should go for issue of debentures and other loans. Choice of investors- The company’s policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors. Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the company’s capital structure generally consists of debentures and loans. While in period of boons and inflation, the company’s capital should consist of share capital generally equity shares. Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures. Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits. Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases. Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions- Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures). Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two- Highly geared companies- Those companies whose proportion of equity capitalization is small. Low geared companies- Those companies whose equity capital dominates total capitalization. For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company. Factors Determining Capital Structure Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. It refers to additional profits that equity shareholders earn because of issuance of debentures and preference shares. It is based on the thought that if the rate of dividend on preference capital and the rate of interest on borrowed capital is lower than the general rate of company’s earnings, equity shareholders are at advantage which means a company should go for a judicious blend of preference shares, equity shares as well as debentures. Trading on equity becomes more important when expectations of shareholders are high. Degree of control- In a company, it is the directors who are so called elected representatives of equity shareholders. These members have got maximum voting rights in a concern as compared to the preference shareholders and debenture holders. Preference shareholders have reasonably less voting rights while debenture holders have no voting rights. If the company’s management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares. Flexibility of financial plan- In an enterprise, the capital structure should be such that there is both contractions as well as relaxation in plans. Debentures and loans can be refunded back as the time requires. While equity capital cannot be refunded at any point which provides rigidity to plans. Therefore, in order to make the capital structure possible, the company should go for issue of debentures and other loans. Choice of investors- The company’s policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors. Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the company’s capital structure generally consists of debentures and loans. While in period of boons and inflation, the company’s capital should consist of share capital generally equity shares. Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures. Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits. Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases. Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.

Meaning of Capital Structure
Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions-
  1. Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures).
  2. Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two-
    1. Highly geared companies- Those companies whose proportion of equity capitalization is small.
    2. Low geared companies- Those companies whose equity capital dominates total capitalization.
    For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company.
Factors Determining Capital Structure
  1. Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. It refers to additional profits that equity shareholders earn because of issuance of debentures and preference shares. It is based on the thought that if the rate of dividend on preference capital and the rate of interest on borrowed capital is lower than the general rate of company’s earnings, equity shareholders are at advantage which means a company should go for a judicious blend of preference shares, equity shares as well as debentures. Trading on equity becomes more important when expectations of shareholders are high.
  2. Degree of control- In a company, it is the directors who are so called elected representatives of equity shareholders. These members have got maximum voting rights in a concern as compared to the preference shareholders and debenture holders. Preference shareholders have reasonably less voting rights while debenture holders have no voting rights. If the company’s management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares.
  3. Flexibility of financial plan- In an enterprise, the capital structure should be such that there is both contractions as well as relaxation in plans. Debentures and loans can be refunded back as the time requires. While equity capital cannot be refunded at any point which provides rigidity to plans. Therefore, in order to make the capital structure possible, the company should go for issue of debentures and other loans.
  4. Choice of investors- The company’s policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors.
  5. Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the company’s capital structure generally consists of debentures and loans. While in period of boons and inflation, the company’s capital should consist of share capital generally equity shares.
  6. Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures.
  7. Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits.
  8. Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases.
  9. Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.
  10. DK SETH PGDM 2ND SEM

Legal tangible delays NTPC's order placement of Rs 34,000 cr

New Delhi: Mired in legal tangle, country's largest power producer NTPC is unable to place equipment orders worth Rs 34,000 crore for four super-critical projects in the country. The placement of these orders have been stranded since one of the participating bidders -- Ansaldo Caldaie Boilers (ACB) -- approached the court after its bid was rejected by NTPC citing non-fulfillment of minimum criteria in the tender.
Sources said due to the dispute, NTPC has not been able to place orders worth about Rs 34,000 crore for four projects spread across Maharashtra, Bihar and Uttar Pradesh.
The orders were to be placed for two units each of Solapur and Mouda projects in Maharashtra and two units of Meja plant in Uttar Pradesh. Each of these projects have a capacity of 1,320 MW.
Another order was to be placed for three units of 1,980 MW Nabinagar plant in Bihar. All the four projects are slated for the 12th...
Five-Plan Period (2012-17). According to sources, the issue of NTPC being unable to place these orders was also discussed at a review meeting of the power sector held at the Planning Commission yesterday.
The orders were to be placed as per Cabinet direction in January 2011 and the delay is already hurting the capacity addition plans of NTPC, sources noted.
ACB, a subsidiary of Gammon India, first approached the Delhi High Court and now the case is pending in the Supreme Court.
Chennai-based ACB India is a joint venture between Italian boiler manufacturer Ansaldo Caldaie and Gammon India, which holds a 73.4 per cent stake.
NTPC had invited tender for supplying a package that includes 11 super-critical boilers and an equal number of super-critical turbines of 660-MW each.
Presently, NTPC has an installed capacity of 36,014 MW. In the 12th Plan period, the company is expected to see a capacity addition of about 66,000 MW.


PRIYANKA KUMARI
PGDM- 2nd Sem

Indiatimes|The Times of India|The Economic Times| More Facebook|Log In|Join| The Economic Times Investor's Guide NewsStock Quote Home NewsNew Markets IPO Personal Finance Tech Jobs Opinion Features Environment Blogs ET NOW ET Sunday Magazine Executive Drive ET500 ET Realty Brand Equity Corporate Dossier ET Travel Investor's Guide Financial Times CMO Hub ET Slideshows You are here: Home » Features » Investor's Guide 6 Feb, 2012, 05.05AM IST, Bakul Chugan Tongia,ET Bureau Fund review: ICICI Prudential tax plan Close Story Comments Read more on »investment|ICICI Prudential Tax Plan|CAGR|benchmark index portfolio Launched on February 2006 ICICI Prudential Tax Plan has shown that it can deliver big returns during rallies. Investors with a long-term perspective can consider it, but they should keep in mind that its high exposure to mid-caps makes it vulnerable to swings in the short term. Going by its past performance, ICICI Prudential Tax Plan has delivered stupendous returns in market rallies, especially in 2009 and 2010. However, a high exposure to midcap stocks has impacted the scheme's performance in downturns as is reflected in 2008 and 2011. While the scheme has managed to beat its benchmark index consistently since its launch, its competitors have gained an edge during the downturns. However, given its tax-saving cadre, investors are bound to stay invested for the three-year lockin period and those who are invested have more than enough reason to cheer. /photo.cms?msid=11773190 Basics NAV 52 WEEK: High Rs 145.3 Low Rs 113.6 BENCHMARK: S&P CNX 500 NET ASSETS (Cr) Rs 1,197.24 (Dec 2011) EXPENSE RATIO 2% With its awesome performance in 2009 and 2010, the scheme posted a CAGR of about 36% in the past three years, making it one of the best performers in its category. Its strategic investment calls in metals and capital goods that backfired last year have boosted its returns in the current calendar year so far. Investors can consider this scheme from a long-term investment perspective. /photo.cms?msid=11773208 Download ET's mobile applications for iPad, iPhone, Android, BlackBerry, Nokia and Windows Phone to track news as it happens, live stock quotes, monitor portfolio, get market stats like gainers, losers and movers & much more. To check out free Economic Times apps , Click here For Features news updates, follow ET on Twitter Do you like this story? Post a Comment Follow this topic PREVIOUS STORY Transformation of internet darlings like Facebook, Twitter into public traded companies may spell the end for private exchanges With Facebook on the verge of listing on either the New York Stock Exchange or the Nasdaq, the secondary market is faced with the prospect of losing its golden goose. 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Mumbai | Delhi | Bangalore | Kolkata SHOP MOBILE 58888 Adidas Set of 3 Deo's for MenAdidas Set of 3 Deo's for Men 19% Off on MRP 1% Off on Olympus VG110 31% Off on Samsung Camera ES30 70% Off on Nokia BH-503 Bluetooth more » Get a Quote Browse Companies ABCDEFGHIJKLMNOPQRSTUVWXYZ|123456789 Home|News|Markets|Personal Finance|Mutual Funds|Infotech|Jobs|Opinion|Features|Videos|My Portfolio Other Times Group news sites Times of India|इकनॉमिक टाइम्स ઈકોનોમિક ટાઈમ્સ|Mumbai Mirror Times Now|Indiatimes नवभारत टाइम्स|महाराष्ट्र टाइम्स Living and entertainment Timescity|iDiva|Bollywood|Zoom Networking itimes|Dating & Chat|Email Hot on the Web Buy Nokia Phones|Valentines Gifts Elections 2012|Elections 2012 News Budget 2012|Lata Mangeshkar Songs Services Book print ads|Online shopping|Business solutions|Book domains|Web hosting Business email|Free SMS|Free email|Website design|CRM|Tenders|Remit Cheap air tickets|Matrimonial|Ringtones|Astrology|Jobs|Property|Buy car Bikes in India|Online Deals About us/Advertise with us/Careers @ TIL/Terms of use/Privacy Policy/Feedback/Sitemap/Code of Ethics Copyright© 2012 Times Internet Limited. 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Going by its past performance, ICICI Prudential Tax Plan has delivered stupendous returns in market rallies, especially in 2009 and 2010. However, a high exposure to midcap stocks has impacted the scheme's performance in downturns as is reflected in 2008 and 2011. While the scheme has managed to beat its benchmark index consistently since its launch, its competitors have gained an edge during the downturns. However, given its tax-saving cadre, investors are bound to stay invested for the three-year lockin period and those who are invested have more than enough reason to cheer. /photo.cms?msid=11773190 Basics NAV 52 WEEK: High Rs 145.3 Low Rs 113.6 BENCHMARK: S&P CNX 500 NET ASSETS (Cr) Rs 1,197.24 (Dec 2011) EXPENSE RATIO 2% With its awesome performance in 2009 and 2010, the scheme posted a CAGR of about 36% in the past three years, making it one of the best performers in its category. Its strategic investment calls in metals and capital goods that backfired last year have boosted its returns in the current calendar year so far. Investors can consider this scheme from a long-term investment perspective. /photo.cms?msid=11773208 Download ET's mobile applications for iPad, iPhone, Android, BlackBerry, Nokia and Windows Phone to track news as it happens, live stock quotes, monitor portfolio, get market stats like gainers, losers and movers & much more. To check out free Economic Times apps , Click here For Features news updates, follow ET on Twitter Do you like this story? Post a Comment Follow this topic PREVIOUS STORY Transformation of internet darlings like Facebook, Twitter into public traded companies may spell the end for private exchanges With Facebook on the verge of listing on either the New York Stock Exchange or the Nasdaq, the secondary market is faced with the prospect of losing its golden goose. NEXT STORY Europe's leaders must not sacrifice union to save euro The euro-area crisis is forcing many of the European Union's long-running political disputes to the surface at the same time. There are no comments on this article yet. Why don't you post one? Comments are moderated and will be allowed if they are about the topic and not abusive. Your comment Characters remaining (1500) To post this comment you must log in. Log In/Connect with: Log In with FacebookLog In with Twitter More Login Options or Fill in your details: Will be displayedWill not be displayed Will be displayed Share this Comment: Post to Facebook Post to Twitter Please answer this simple math question. 4 + 3 = LATEST FROM ET LATEST FROM WEB 'PSUs to clear illegal occupation on their property' 6.8 quake in Philippines kills 13, buries homes UAE, KSA top destinations for duping Punjab workers BSP govt involved in corruption: Mulayam China defends Syria veto, denies sheltering Assad more » MOST READ MOST COMMENTED MOST SHARED In This Section | Entire Website 1 Hold existing investments for better returns:... 2 Redemption Time: Government actions and polic... 3 Sector Analysis: IT struggles to pick up pace... 4 Persistent Systems: New-tech focus to help; m... 5 Expert view on outlook for Infosys, L&T, ITC... Slide Shows 1 / 6more » India's major modernisation programmes India plans to spend about $100 billion over the next 10 years to upgrade its largely Soviet-era military equipment.India's major modernisation programmes Know your needs for best financial advice Tax planning is no child’s play. Choose a financial planner who can guide you as per your financial & personal requirements.Know your needs for best financial advice Make the most of 'day-care' covers ET explains the benefits of ‘day-care’ & out-patient department coverage that health insurance companies offer.Make the most of 'day-care' covers How to search the web faster? ET shows you how to search faster, more accurately and have some fun while doing it too.How to search the web faster? Five ways to leverage LinkedIn for a job LinkedIn - often ignored or underutilised - is just one of the most efficient resources to find a good job.Five ways to leverage LinkedIn for a job Seven habits of effective tax planners ET offers some tips to help you avoid the common mistakes most people make while planning their investments.Seven habits of effective tax planners ET Mobile Get Economic Times on the go. Get your portfolio updates by the minute ET ePaper Get a replica of your favourite edition of ET and feel at home. Mumbai | Delhi | Bangalore | Kolkata SHOP MOBILE 58888 Adidas Set of 3 Deo's for MenAdidas Set of 3 Deo's for Men 19% Off on MRP 1% Off on Olympus VG110 31% Off on Samsung Camera ES30 70% Off on Nokia BH-503 Bluetooth more » Get a Quote Browse Companies ABCDEFGHIJKLMNOPQRSTUVWXYZ|123456789 Home|News|Markets|Personal Finance|Mutual Funds|Infotech|Jobs|Opinion|Features|Videos|My Portfolio Other Times Group news sites Times of India|इकनॉमिक टाइम्स ઈકોનોમિક ટાઈમ્સ|Mumbai Mirror Times Now|Indiatimes नवभारत टाइम्स|महाराष्ट्र टाइम्स Living and entertainment Timescity|iDiva|Bollywood|Zoom Networking itimes|Dating & Chat|Email Hot on the Web Buy Nokia Phones|Valentines Gifts Elections 2012|Elections 2012 News Budget 2012|Lata Mangeshkar Songs Services Book print ads|Online shopping|Business solutions|Book domains|Web hosting Business email|Free SMS|Free email|Website design|CRM|Tenders|Remit Cheap air tickets|Matrimonial|Ringtones|Astrology|Jobs|Property|Buy car Bikes in India|Online Deals About us/Advertise with us/Careers @ TIL/Terms of use/Privacy Policy/Feedback/Sitemap/Code of Ethics Copyright© 2012 Times Internet Limited. All rights reserved.Launched on February 2006 ICICI Prudential Tax Plan has shown that it can deliver big returns during rallies. Investors with a long-term perspective can consider it, but they should keep in mind that its high exposure to mid-caps makes it vulnerable to swings in the short term. Going by its past performance, ICICI Prudential Tax Plan has delivered stupendous returns in market rallies, especially in 2009 and 2010. However, a high exposure to midcap stocks has impacted the scheme's performance in downturns as is reflected in 2008 and 2011. While the scheme has managed to beat its benchmark index consistently since its launch, its competitors have gained an edge during the downturns. However, given its tax-saving cadre, investors are bound to stay invested for the three-year lockin period and those who are invested have more than enough reason to cheer. /photo.cms?msid=11773190 Basics NAV 52 WEEK: High Rs 145.3 Low Rs 113.6 BENCHMARK: S&P CNX 500 NET ASSETS (Cr) Rs 1,197.24 (Dec 2011) EXPENSE RATIO 2%

Launched on February 2006

ICICI Prudential Tax Plan has shown that it can deliver big returns during rallies.

Investors with a long-term perspective can consider it, but they should keep in mind that its high exposure to mid-caps makes it vulnerable to swings in the short term.

Going by its past performance, ICICI Prudential Tax Plan has delivered stupendous returns in market rallies, especially in 2009 and 2010.

However, a high exposure to midcap stocks has impacted the scheme's performance in downturns as is reflected in 2008 and 2011.

While the scheme has managed to beat its benchmark index consistently since its launch, its competitors have gained an edge during the downturns.

However, given its tax-saving cadre, investors are bound to stay invested for the three-year lockin period and those who are invested have more than enough reason to cheer.
/photo.cms?msid=11773190
Basics

NAV 52 WEEK: High Rs 145.3 Low Rs 113.6

BENCHMARK: S&P CNX 500

NET ASSETS (Cr) Rs 1,197.24 (Dec 2011)

EXPENSE RATIO 2%

D KSETH
PGDM 2ND SEM



Euro crisis could almost halve China's growth, IMF saysChina's rapid pace of growth is under threat from the euro zone crisis, says the IMF A euro zone recession could almost halve Chinese growth this year, according to the International Monetary Fund (IMF). The IMF forecasts China's economy will grow by 8.2% this year - but warns that a recession in the euro zone could cut this to 4.2%. It said Beijing should get ready to inject billions of dollars into the economy to fend off any downturn. China's economy grew by 9.2% in 2011, but growth was slowed by Beijing to avoid over-expansion. The IMF's report comes as Greece enters another day of crisis talks aimed at finalizing a 130bn-euro (£108bn; $171bn) European Union bailout. Athens needs the money by mid-March to avoid default on its debts. Room for manoeuvre In its report, the IMF said: "China's growth rate would drop abruptly if the euro area experiences a sharp recession. "However, a track record of fiscal discipline has given China ample room to respond to such an external shock." The government should cushion the impact of a deeper slowdown with measures including tax cuts that amount to about 3% of gross domestic product, the IMF said. It also noted that inflation had reached more comfortable levels by the end of 2011 and may continue to slow steadily in the first few months of this year. The outlook expands on the IMF's warning last month that the world could plunge into another recession if Europe's financial crisis deepens. IMF chief Christine Lagarde said last month that the world faced "an economic spiral reminiscent of the 1930s" unless the euro zone crisis was resolved. Chinese leader Wen Jiabao reiterated last week that his government would "fine-tune" policies to support growth amid the euro zone's debt crisis.


China's rapid pace of growth is under threat from the euro zone crisis, says the IMF
A euro zone recession could almost halve Chinese growth this year, according to the International Monetary Fund (IMF).
The IMF forecasts China's economy will grow by 8.2% this year - but warns that a recession in the euro zone could cut this to 4.2%.
It said Beijing should get ready to inject billions of dollars into the economy to fend off any downturn.
China's economy grew by 9.2% in 2011, but growth was slowed by Beijing to avoid over-expansion.
The IMF's report comes as Greece enters another day of crisis talks aimed at finalizing a 130bn-euro (£108bn; $171bn) European Union bailout.
Athens needs the money by mid-March to avoid default on its debts.
Room for manoeuvre
In its report, the IMF said: "China's growth rate would drop abruptly if the euro area experiences a sharp recession.
"However, a track record of fiscal discipline has given China ample room to respond to such an external shock."
The government should cushion the impact of a deeper slowdown with measures including tax cuts that amount to about 3% of gross domestic product, the IMF said.
It also noted that inflation had reached more comfortable levels by the end of 2011 and may continue to slow steadily in the first few months of this year.
The outlook expands on the IMF's warning last month that the world could plunge into another recession if Europe's financial crisis deepens.
IMF chief Christine Lagarde said last month that the world faced "an economic spiral reminiscent of the 1930s" unless the euro zone crisis was resolved.
Chinese leader Wen Jiabao reiterated last week that his government would "fine-tune" policies to support growth amid the euro zone's debt crisis.

2012 would be quite a good year for Indian market


When we look specifically at the fundamental valuations of India, the Indian equity market is attractive. Its price is significantly below fundamental value, and we believe the equity market provides a great opportunity to garner cash flows for investors. Similarly, the currency also looks attractive. I think 2012 would actually be quite good. However, there are a number of challenges India that may create problems in the intermediate term.



What are those challenges?
Culturally, entrepreneurship is not very strong in India, and bureaucratic hurdles make it very difficult for entrepreneurs to set up businesses and grow these. From a policy perspective, right now, it is a country focused more on conglomerates than it is on the rest of the population. Unlike other developing economies that are drawing from a lower class and an upper class and creating a growing middle class, India is not. In fact, India almost seems to be becoming more and more bipolar over time. The primary way that an economy can create that middle class is migration from an agrarian to a manufacturing economy. Not a migration from an agrarian to a service economy. Finally, the policies in the education system that are now integrating quotas for the poor are having an adverse impact on overall education. The final challenge in India is grafting corruption. These together mean, in the interim, things are going to be difficult. I would say none of these challenges would surprise any well-informed global investor and are largely priced in 
                                                                                                 ANAND PRAKASH/RAZI ANWAR 
                                                                                                              PGDM 2ND (SEM)

Goverment asks ONGC, OIL to pay Rs 36,900 crore in fuel subsidy.


NEW DELHI: The government has asked upstream oil firms like Oil and Natural Gas Corp (ONGC) to give about Rs 36,900 crore in fuel subsidy during April to December 2011, an official said today.

Fuel retailers Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) lost Rs 97,300 crore in revenue on selling diesel, LPG and kerosene at government controlled rates during the first nine months of current fiscal.

"Of this, the upstream companies have been asked to make good 37.91 per cent or Rs 36,894 crore," the official said.

The government regulates rates of diesel, domestic LPG and kerosene to keep inflation under check. The revenue loss incurred by retailers on selling fuel below cost is split between the government and the oil companies.

The government has so far provided Rs 30,000 crore in cash subsidy to make up for more than half of the revenues that IOC, BPCL and HPCL lost on fuel sales during first half. 
NIDHI KATARIYA
PGDM 1ST YEAR