Ed 15 finxpress feb 27

February 27th, 2017

Jio’s Plan to Profit Brexit - An Opportunity to Reset UK- India Trade Ties

GST Helpline—FinApp

EDITION XVI . 15

A FinNiche Initiative

EDITORIAL

- ANKIT SURANA

“One day I may be meeting you and hearing how you've changed your life by saying, 'Farewell to Fat'. ” - Richard Simmons With few phases of elections in Uttar Pradesh already over, the results will be either a learning experience or a historic moment for the Modi Government. As the lives of the common people are almost on track after fourteen weeks of demonetization, it’s time for the people to give their mandate. Though these are just assembly elections which are fought mostly on the state issues, a positive result will definitely act as a bonus for the ruling party. This election is also important for the regional parties whose pride is at stake this time. From issues going on at the University of Delhi, to inception of Bill on Marriage Expenses, past few days have seen a lot. As usual, our scientists at ISRO have made us proud by launching 104 satellites in a single go.

Adding to this, NASA has revealed seven exoplanets in the Milky Way Galaxy which is considered a milestone in finding life at space.

At IMT time has come to say Good-Bye to our loving and respected seniors. We wish them good luck and a bright future.

As always, we at Club FinNiche are open to any comments, suggestions or criticisms. Please do write to us and share your ideas.

Happy Reading!

The Editorial Team.

Facebook: https://www.facebook.com/FinNiche/?fref=ts

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CONTENTS Jio’s Plan to Profit

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Trump Will Not Attend the White House Correspondents' Dinner 4 Brexit - An Opportunity to Reset UK- India Trade Ties 6 Fin-Humour

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Market

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Start-up Tracker

10

Fin-App

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Fin-Word

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Fin-Quiz

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Life @ IMT

16

Sponsors

17

Our FinXpress

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NATIONAL

Jio’s Plan to Profit

- ANSHUMAN NANDWANA

Jio, fuelled by tremendous investments —— Survival of the companies —— A new technology or a burden of huge Infrastructure —— Looking towards new plans

India is home to the world’s second largest mobile user base and the third highest number of internet users. Understandably, the telecom sector in the country is hyper-competitive, with multiple groups vying to capture the largest piece of the pie. Jio is the newest player to enter the competition, and it’s not just winning the game but rewriting the rules altogether. Recently announcement of Jio starting consumers to charge has rallied share of RIL by 11.21%.

One question that seems to be on everyone's mind though, is how Jio will make a profit when their rates are so low as to defy belief. To answer this question, one needs to understand Mukesh Ambani's grand ambitions, not for the present, but the future. Here are some facts that would make Jio possible to generate profits even at low costs to subscribers: 

Fueled by an investment of Rs 1,50,000 crore and backed by partnerships with eight global



carriers, Jio has successfully created the largest only 4G and LTE networks not only in India, but in the world. This investment has enabled Jio to provide high data speeds to huge number of subscribers at a time. Like other capital intensive industry, major cost for operators is accrued in developing capital. With latest technology, having more traffic when compared to other operators would not be a problem to Jio and hence low prices for high amount of data would not affect Jio’s network in negative manner.

All the existing network providers are using a modified 2G/3G infrastructure to provide 4G in India, Jio has set up a Greenfield network (created from scratch) that offers higher bandwidth and faster speeds. The Jio network is also future-proof and capable of offering 5G and 6G connectivity as and when the technology materializes. Therefore, by materializing longer usage period due to future ready infrastructure, Jio would not need to

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NATIONAL

make capital investment repeatedly like other operators thereby, reducing costs.

3. Reliance Jio uses ‘VoLTE-only’ (Voice over LTE) network in India. This technology eschews the fluctuations of the 2G/3G network in favour of high-speed data transfer which allows for more robust connectivity and clearer voice calls. Therefore, Jio bears no additional cost for providing voice as service.

4. For the current network providers in India, the monthly average revenue per user (ARPU) is around Rs 150. Jio has come up with very clever tariff planning which ultimately makes consumers to spend more for better services. A normal urban subscriber would go for Rs 429 Plan whereas rural subscribers may opt for Rs129 Plan for 28 days. This would shift ARPU for Jio to higher level compared to its competitors.

5. Immediate revenue is of no concern to Mukesh Ambani. The Reliance Jio endeavor is a big bet on the future, and the company's present aim is

to establish the ideal eco-system for when that future arrives.

By leveraging the need for affordable internet in every one of India's numerous social strata, Jio has started dismantling other network providers with its foray into the market and recently hit a user base of 100 million.

All of RIL's efforts on Jio are part of a greater whole in which the company plans to achieve national, and international, domination in the field of mobile internet. And what they're doing now is laying the foundation on which they will build the industry's greatest monument. Mukesh Ambani's business philosophy is a simple one — ‘nothing ventured, nothing gained’. He has recognized mobile internet to be the most profitable venture in the long run and has consequently invested considerable time and money to make RIL the foremost company in the sector.

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INTERNATIONAL

Trump Will Not Attend the White House Correspondents' Dinner

- KRISHANT KAUL

Donald Trump and again a controversy —— Looking towards a greater USA or a greater Trump —— Statement of the White House Correspondent’s Association

President Donald Trump will not attend the White House correspondents' dinner.

Trump announced his decision on Twitter late Saturday afternoon (25-02-2017). The dinner is scheduled for April 29. The event is an annual gathering of journalists and the people they cover, typically headlined by the sitting president. The White House Correspondents' Association awards $100,000 in scholarships at its annual dinner, according to its website, and recently started a mentoring program that pairs working journalists with journalism students.

He tweeted: I will not be attending the White

House Correspondents' Association Dinner this year. Please wish everyone well and have a great evening!

I will not be attending the White House Correspondents' Association Dinner this year.

Please wish everyone well and have a great evening!

Shortly after Trump's tweet, the president of the White House Correspondents' Association, which sponsors the annual event, said in an email that the dinner would take place even without Trump's attendance. The dinner has been and will continue to be a celebration of the First Amendment and the important role played by an independent news media in a healthy republic.

WHCA president Jeff Mason told that they are looking forward to a shining a spotlight at the dinner on some of the best political journalism of the past year and recognizing the promising Page 4

INTERNATIONAL

students who represent the next generation of our celebrities. profession.

The annual dinner began in 1921, and Calvin Since Trump's inauguration, calls to boycott the Coolidge became the first president to attend the annual event have grown louder amid his dinner in 1924. In 1978, Jimmy Carter declined to increasingly fraught relationship with the press. attend, citing exhaustion. First lady Rosalynn Throughout his campaign, Trump regularly lashed Carter and Vice President Walter Mondale also out at the press, singling out news outlets for didn't show up that year, according to The being "dishonest" and at one point barring The Washington Post's Paul Farhi. In 1981, President Washington Post from covering his campaign Ronald Reagan managed to deliver remarks by events. Since his election, he has accused certain phone even though he was at Camp David media outlets of publishing "fake news." Earlier recovering from an assassination attempt. this month, the tense relationship reached a boil when Trump called the media "the enemy of the Trump has attended the dinner before. In 2011, American People." then-president Barack Obama roasted Trump at the dinner - five minutes of jokes directed at the In response to concerns, the White House man who had raised questions about whether Correspondents' Association released a statement Obama was born in the United States. At the time, earlier this month, saying the dinner would take Obama joked about Trump's experience to lead the place. Vanity Fair, the New Yorker and Bloomberg nation. cancelled their parties, which had usually drawn

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INTERNATIONAL

Brexit - An Opportunity to Reset UK- India Trade Ties

- NIDHI KUMAR

Hurdles that existed Earlier and can be resolved now —— High restrictions on imports of Scotch from Scotland —— Theresa May’s Visa Policy

There is a staggering sense among Members of the European Parliament that Brexit is probably going to decidedly affect the EU's for quite some time drawn transactions over a FTA with India.

Britain’s exit from the European Union (EU) is likely to positively impact the economic bloc’s long-drawn negotiations, according to a leaked document drawn up by the members of the EU Parliament. The archive attracted up focuses to British Prime Minister Theresa May's stringent arrangement towards Indian experts as a noteworthy hindrance to the FTA, which has been in progress since 1997. In 2010-11, the quantity of visas issued to Indian understudies remained at 30,000. That in itself was not a high figure. A year ago, the number was down to 16,000, while there has been an unfaltering

increment in numbers stowed by France and Germany, close by Australia and New Zealand and the US; the top goal for Indian students .India's high import levies on Scotch whisky from Scotland are viewed as another obstacle, which would likewise never again be a component post-Brexit.

Scotland keen about such FTA Scotland has a noteworthy enthusiasm for a FTA with India: India has the world's biggest market for whisky, which is exceedingly secured by restrictive duties. Bringing down duties for Scottish whisky could introduce an essential market opportunity.

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INTERNATIONAL

Exchanging Relationship The exchanging relationship between both nations is enormous. The UK is the third-biggest investor in India, and the biggest among G20 countries .Similarly, India is the third-biggest investor in the UK economy, and second-biggest global employment maker in the UK, including more than 110,000 occupations in the course of the most recent two decades. Independent

assessment puts the trade in goods between both countries at $14bn (ÂŁ11.3bn) and trade in services at $5bn. Of all the ventures made by Indian organizations into the European Union, the UK represents the biggest share. But, a lot of Indian companies made their investment decisions and plans based on a certain premise that they would have easy access to Europe which is still a big problem for India.

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FINHUMOUR - ADYA JHA

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MARKET BSE Sensex - Top GAINERS Idea Cellular TCS Wipro Kotak Mahindra

BSE Sensex - Top LOSERS

- PRANAV GOYAL

Grasim Reliance Aurbindo Pharma

NIFTY

Asian Paints

The market rallied to fresh 52-week high intraday on Nifty but failed to hold on to that rally amid volatility Thursday on expiry of February futures & options contracts. Profit booking in Reliance Industries and banks caused volatility in late trade but equity benchmarks managed to continue uptrend for sixth consecutive session on support from technology stocks and rupee appreciation.

SENSEX The 30-share BSE Sensex reclaimed 29000 level intraday, before closing up 28.26 points at 28892.97. The 50-share NSE Nifty settled the trade with 12.60 points gains at 8939.50 after hitting a fresh 52-week high of 8982.15 during the day. The market retained uptrend for fifth consecutive week, up over a percent while in February series, benchmark indices surged 4 percent and Midcap gained 5 percent. Experts say they expect the liquidity to continue to support the market in March series that may help it to touch new high.

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STARTUP TRACKER - RISHI SAXENA

Crowdfunding: It is defined as the process of collecting money from large number of people to fund a project, venture or social cause.

Crowdfunding is a new concept in India but it is extremely popular in developed countries and an estimated US$34 billion were raised worldwide and 270,000 jobs were created through crowdfunding in year 2015. This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization that brings the parties together to launch the idea.

Two primary type of crowdfunding are: 1. Rewards crowdfunding: entrepreneurs presell a product or service to launch a business concept without incurring debt or sacrificing equity/ shares 2. Equity crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged.

About Impact Guru: The startup duo of Piyush Jain and Khushboo decided to bet big on crowdfunding.

Their crowd funding platform Impact Guru has raised Rs 25 lakh and has helped 51 non-profits in the five months that it has been in existence.

What it does: Impact Guru is an online fundraising and crowdfunding platform. They help individuals, non-profits, social enterprises, and corporates to

raise money online for social or personal projects.

Impact Guru aims to make the fundraising process fast, easy, cost-effective and fun. You can create a fundraiser for free on their platform, spread the word amongst friends, family and your social media network to help/donate and get around 90% of the funds collected directly transferred to you within two weeks after the end of your campaign.

How does Impact Guru make money: Once the money has been raised, the platform fees plus transaction fees amount to up to 10% of the funds raised. Under their SMILE policy, if you manage to get 100 Facebook shares or 20 donors for your campaign, they will waiver our platform fee completely leaving more funds to make use of.

Crowdfunding fintech platform Impact Guru, which is incubated by Harvard Innovation Lab, announced raising a seed round of $500,000 from Singaporebased venture capital fund RB Investments and private investment platform Fundnel. When combined, the total funds raised

by Fundnel and Impact Guru add up to $8.5 million or Rs 56 crore in the last one year Founded by 2014, and starting off as an online crowdfunding platform for non-profits, Impact Guru has been an active participant for donation funding during the Chennai floods last year, and various marathons and social awareness activities.

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FINAPP - SHUBHAM ARORA

GST Helpline India app is a one stop solution for latest news, information, articles, Draft law along with information regarding proposed rates and their application across various sectors, frequently asked questions by the users and seekers, important links directly related to the GST and major points clearing all the doubts and queries regarding GST. It is a useful app to stay acquainted with every tiny information coming from the government authority directly in your hands.

Goods and Service Tax is a very significant taxation scheme which will absorb all the indirect tax like service tax, VAT etc. currently prevailing in the country. The motive for creating GST helpline app is solely for sharing information and keeping its users more knowledgeable in the field of this new upcoming taxation regime. Talking about the design, the application is very well formed with simple design and comes with wide range of GST information links attached. The GST India related links can be easily accessed by the users. The GST FAQs offers wide range of questions asked regarding GST. Undoubtedly, it is an informative mobile application that provides every detail about the ongoing events in GST India.

The app keeps its users well informed on the GST through GST news and explains the working of GST India under GST draft law. The application is compatible with the Android version 4.0 and above. It comes with light configuration and simple User Interface.

Application Features:  GST News & Articles- This section is updated on regular basis in order to keep the users updated on the latest happening in the GST India, the section features all latest GST news and articles related to GST. The app notifies the users whenever any news & article gets published. The user may easily tap the required news to read it in detail.  Get Provisional ID Help- List of all states along with the procedure of applying for the provisional IDs. All the steps are provided that will be needed for getting provisional ID from concerned department.  Enrolment Process Help- This section contains A to Z steps for the enrolment process in the GST. The user will be redirected to the official GST India portal where they can login with their enrolment id and password.  GST Login- The User will be able to log in to the official GST website www.gst.gov.in through the GST helpline mobile application easily.  Applicable GST Forms- The Government has brought special forms that will be considered under the GST regime. You can go through the e-copy of the GST forms available in the app. The forms are important as these will be required to be filled by every taxpayer in India. The users can get a better understanding by reading the form types and know more about the registration and return process.  GST Calculator- The GST calculator feature allows the users to calculate their taxes. The taxes can be calculated in both CGST and SGST segments. The GST calculation is simply done by filling the GST rate and providing the applicable rates as input.

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FINAPP

7. Flowchart- This section consists of the simplified flowchart of the GST Forms that will be required by Regular dealer, composition scheme, Tax-Deductor, Input Service Distributor, UN Bodies, Embassies, Non- Resident Assesse, Temporary registration, Existing Taxpayer, E-commerce.

8. Final Rates- This section reveals the GST rates proposed in the GST council meeting i.e. 0%, 5%, 12%, 18% and 28% (with cess). The goods will be included under these mentioned GST rates after the implementation of the GST Law in India.

9. GST Draft Law and FAQs- This section gives you a glimpse of the model GSR draft law in details as presented by the Government of India. GST draft law is important for the implementation of the GST India and acknowledge the proposed GST structure across different sectors. The GST FAQs consists of various questions related to GST India including 50+ FAQs by Finance Minister Arun Jaitley.

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FINWORD

Account Aggregation

- SRIKANT SINGH

Account aggregation is a process by accounts are linked so as to combine fees or ease access for account holders. House-holding is one form of account aggregation wherein all the accounts such as savings, checking and brokerage accounts of a household are linked. Statements and online summaries display all the accounts and their details within the household. ‘Account Aggregation’ may also include credit card accounts which are issued by the institution where the linked accounts are held or which are tied in some way to a particular account. Account aggregation usually only occurs within a single institution, although certain assets held outside a financial institution may be linked if there is a prearranged procedure for doing so.

Aggregating accounts can be particularly useful for families who have multiple financial goals, since the statements give a complete picture of the family's financial assets.

Generation-Skipping Transfer Tax GSTT is the tax incurred when there is a transfer of property by gift or inheritance to a beneficiary who is more than 37.5 years younger than the donor. These taxes serve the purpose of ensuring that taxes are paid when assets are placed in a trust, and the person receives amounts in excess of the generation-skipping estate tax credit. GSTT commonly occurs with a transfer to grandchildren. However, most people will hardly incur this tax as the GSTT exemption has for the past few years ranged between $3.5 million to $5 million. Additionally, transferors can create dynasty trusts which are completely released from paying the GSTT.

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FINQUIZ

1. Marginal Cost is dependent upon _______________.

A) Only fixed cost B) Only variable cost C) Both fixed cost and variable cost D) Neither fixed cost nor variable cost

- SAMARTH AGARWAL

2. Debt financing that can magnify the risk and reward for an investment are called as follows ________ A) Reward risk B) Derivative C) Leverage D) Investment strategy 3. Which in the below list is Not Tier I Capital?

A) Paid up Capital B) Statutory Reserves C) Revaluation Reserves D) Retained Earnings

4. In Financial Language, Fixed to Floating and Floating to Floating are mainly used in context with ___________?

A) Interest rates B) Swaps C) Foreign Exchange Rates D) Options 5. Interest Rate Risk comes under ____________?

A) Credit risk B) Market risk C) Operational risk D) All the above categories 6. Which in the below list is correct about an Equity Fund?

A) It gives fixed returns B) It invests primarily in shares C) It invests in both debt and shares D) It assures growth in value Page 14

FINQUIZ

7. In context with the banking, Intermediation cost refers to ___________________, A) Sales and Administration Expenses B) Total operating expenses C) Total non-interest expenses D) None of These 8. In context with the Capital Adequacy Ratio of 9%, if a bank has lent Rs. 100, the Bank must have a capital base of at least _________________?

A) Rs. 90 B) Rs. 109 C) Rs. 91 D) Rs. 9 9. Which refers to the “Statement of Financial Position� as per the Financial Statements released under IFRS? A) Balance Sheet B) Income Statement C) Profit and Loss Statement D) Fund Flow Statement 10. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____?

A) Demand Draft B) Promissory Note C) Bill of Exchange D) Lines of Credit

Answers: 1. B 6. B

2. C 7. B

3. C 8. D

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4. B 9. A

5. B 10. B

LIFE @ IMT

The last fortnight was a blur of colorful emotions as the Second Year prepared to bid a final farewell to IMT. Emotions ran high and lost - AMAN ANAND memories were cherished as the farewell grew closer. There was a air of nostalgia amongst FinNiche too, as the memories we had all made over the past year were relived. Our seniors had been instrumental in making our IMT experience so magical and the transition to the MBA life so easy. They had been our mentors, our friends and a pillar of strength in times of turmoil for the past one year and it was saddening to see them leave.

But like every beautiful winter must give way to an even brighter Spring, so must the reigns of the committee be passed over to the deserving few. Consequently this week also saw the declaration of a lot of to-be senior committees.

With 23rd February came the senior farewell which saw the entire college being lit up and students dress up for the occasion. The phrase “IMT Never Sleeps� never seemed more apt as the students set the stage on fire the entire night.

We at FinNiche bid each and every senior a bright and happy future as they depart the hallowed gates of IMT, with a basket of knowledge and memories that would last them a lifetime.

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OUR SPONSORS

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OUR FINXPRESS

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