October 30, 2016 | A FinNiche Initiative
EDITORIAL
- NIDHI KUMAR
With the festival of lights almost there and happiness and delight all around , Club FinNiche first wants to wish everyone a very happy and prosperous Diwali . The past few days in IMT have not been less fulfilling and colourful with events like Cyclothon , Alumni Guest Lectures and Passion – one of the most awaited events happening in college . The college saw two big star nights with Kenny Sebastian on Day 2 and Sachin– Jigar performing on Day 3 and VH1 Supersonic setting up the dance floor. The first years gave their end terms toiling day and night and somehow trying to make things better in exams . At FinNiche ,we make you rest assured that this journey will be go on and with a much higher pace with many important events lined up in November and December. To give you a good heads up to important events that happened around the globe in the past few weeks , we have come up with another edition of FinXpress . In this edition, we are covering a wide array of articles. In International section, we have an article on Russia is out of the Woods, Almost. On the national front, we have discussed about Uniform Civill Code and Cyrus Mistry Sacked as The Chairman of Tata Sons .In FinApp, we will be reviewing Qapital app. Club FinNiche welcomes any comment, suggestions or criticism regarding the magazine. Please do write to us and share your ideas. Happy Reading! Happy Diwali ! Regards The Editorial Team Club FinNiche Page 1
CONTENTS Uniform Civil Code Cyrus Mistry’s Mystery Russia is out of the woods Fin-Humour Market Start-up Tracker Fin-App Fin-Word Did you know Fin-Quiz Life @ IMT Sponsors
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In India, for every divorced Muslim man, there are four divorced Muslim women, according to Census 2011 data —— UCC will give more rights to the women —— BJP has been a supporter of Uniform Civil Code whereas Congress was against it
NATIONAL
Uniform Civil Code
- RISHI SAXENA
In India, for every divorced Muslim man, there are four divorced Muslim women, according to Census 2011 data —— UCC will give more rights to the women —— BJP has been a supporter of Uniform Civil Code whereas Congress was against it
Definition: Uniform civil code is the proposal to replace the personal laws based on the scriptures and customs of each major religious community in India with a common set governing every citizen. These laws are distinguished from public law and cover marriage, divorce, inheritance, adoption and maintenance. Provision for uniform civil court are given in Article 44 of Directive Principles of India. Goa has a common family law, thus being the only Indian state to have a uniform civil code. Article 44: The state shall endeavor to secure for the citizens a uniform civil code throughout the territory of India.
the constitutional rights of Muslim women from practices that degrade their status in society. This comes after government’s recent opposition to triple talaq and polygamy among Muslims in the Supreme Court. The Government of India has recently asked Law Commission to take a look at the Uniform Civil Code and analyze whether or not it can be implemented. Historically BJP has been a supporter of Uniform Civil Code whereas Congress has been against it.
History: The Lex Loci Report of October 1840- It emphasized the importance and necessity of uniformity in codification of Indian law, relating Why it’s in news now: Marking a first in the to crimes, evidences and contract. It also political history of India, Prime Minister Narendra recommended that personal laws of Hindus and Modi publicly opposed the practice of triple talaq Muslims should be kept outside such codification. in the Muslim community. Addressing a ‘maha parivartan’ rally in Bundelkhand, Modi asserted Queen’s 1859 Proclamation- It promised absolute that government had a responsibility to protect non-interference in religious matters. So while Page 2
criminal laws were codified and became one for and thus there was no need to engage them in a the whole country, personal laws continued to be negative manner and change their personal laws. governed by separate codes for different communities. Shah Bano Case: The Supreme Court first directed the Parliament to frame a UCC in the year 1985 in Charter act of 1813 had allowed missionaries to the case of Mohammad Ahmed Khan v. Shah come to India and promote Christianity. Bentinck Bano Begum, popularly known as the Shah Bano passed many social reform legislations case. In this case, a penurious Muslim woman like abolition of Sati in 1829. It’s believed that claimed for maintenance from her husband under when the Constitution of India was written there Section 125 of the Code of Criminal Procedure had been plenty of debate over the issue, but there after she was given triple talaq from him. The was no concrete outcome. Eventually a Supreme Court held that the Muslim woman have compromise was reached and Uniform Civil Code a right to get maintenance from her husband under became only a directive principle. However, this Section 125. The Court also held that compromise was severely objected to by several Article 44 of the Constitution has remained a dead members of Constituent Assembly such as Minoo letter. After this decision, nationwide discussions, Masani, Rajkumari Amrit Kaur, and Hansa meetings, and agitation were held. The then Rajiv Mehta. Kaur had in fact stated that the religion Gandhi led Government overturned the Shah Bano
based personal laws were creating divisions within the country by compartmentalizing various aspects of life and thus stopping India from becoming a nation. Later on, during the first 10 years of Independence, Indian government passed Hindu Code Bill in spite of staunch opposition from conservative Hindus. However, they could not do the same with Muslims since they felt that they were still recovering from the trauma of Partition
case decision by way of Muslim Women (Right to Protection on Divorce) Act, 1986 which curtailed the right of a Muslim woman for maintenance under Section 125 of the Code of Criminal Procedure. The explanation given for implementing this Act was that the Supreme Court had merely made an observation for enacting the UCC, not binding on the government or the Parliament and that there should be no interference with the personal laws unless the demand comes from within.
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Sarla Mudgal vs Union of India: In this case, the 3. Among divorced Indian women, 68% are question was whether a Hindu husband, married Hindu, and 23.3%, Muslims, according to under the Hindu law, by embracing Islam, can Census 2011 data on the marital status of solemnize second marriage The Court held that a Indians Hindu marriage solemnized under the Hindu law 4. Among divorced men, Hindus account for can only be dissolved on any of the grounds 76%, and Muslims, 12.7%. Both Christian specified under the Hindu Marriage Act, 1955. women and men cover 4.1% of their Conversion to Islam and Marrying again would gender-respective divorced groups not, by itself, dissolve the Hindu marriage under 5. There was a 39% rise in the number of single the Act. And, thus, a second marriage solemnized Indian women including widows, after converting to Islam would be an offence divorcees and unmarried women, and those under Section 494 of the Indian Penal Code. deserted by husbands Facts: 1. In India, for every divorced Muslim man, there are four divorced Muslim women, according to Census 2011 data. 2. Across religious communities, except Sikhs, there are more divorced women than men. But the gender skew is particularly sharp among Muslims (79:21), followed by ‘other religions’ (72:28), and Buddhists (70:30)
Benefits of Uniform Civil Code: 1. It Promotes Real Secularism 2. All Indians should be treated same 3. It will give more rights to the women 4. Sign of a progressive nation 5. Personal laws have lot of loop hole 6. It will help in reducing vote bank politics 7. It will integrate India
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NATIONAL
Cyrus Mistry Sacked as The Chairman of Tata Sons Tata Sons vs Cyrus Mistry —— Exploding letter by Mistry —— Tata Group's stock performance under Mistry's leadership —— Positive steps taken by Mistry during his chairmanship —— Impact of this exit on Tata Group
Event: In a surprising move Cyrus Mistry has been sacked as the Chairman of the Tata Sons, nearly four years after he took over the reins of the over USD 100 billion salt-to-software conglomerate. Background: Mistry had replaced Mr. Ratan Tata on December 29, 2012. After 4 years now, Rata Tata has been appointed as interim Chairman for four months during which a search committee will look for a replacement. There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry’s approach of shedding non-profit businesses, including the conglomerate’s steel business in Europe, and concentrating only on cash cows.
- SAMARTH AGARWAL
try was not following proper ethos and philosophy of Tata group as a whole. Arguments from Cyrus Mistry:- Mistry has argued of not being not informed of the move taken by the board of directors of Tata Sons to replace their chairman without giving him ample opportunity of defending himself. According to Mr. Mistry the suddenness of the action and the lack of explanation of the move taken has harmed the reputation of Mr. Cyrus Mistry as well as the TATA Group. He has also mentioned the problems he faced and the challenges in the business which he took over. Moreover, he has mentioned various instances wherein he has blamed the trust and board for imposing decisions on him rather than giving him a free hand to function as was agreed when he joined TATA group as the chairman.
Letter by Cyrus Mistry To the Board: Current Situation: Arguments from Tata & Sons- The Tata Group's Key Points Worth Highlighting: sagging financials was a key reason behind the I was pushed into a position of a ‘Lame Duck’ removal of Cyrus Mistry as Chairman of Tata chairman with the amendments in the Articles Sons, said VR Mehta, a trustee of the powerful but of Association low-key charitable trusts that own the Tata Group. Nano has consistently lost money to a total He also added that under Mr tune of 1000 crore. Turnaround Plan for Mistry's watch the entire group was TATA Nano requires TATA Motors to Shut it dependent on only two companies – Tata down. Emotional reasons have kept us from Consultancy Services and JLR (Jaguar Land closing down the TATA Nano project. AddiRover). tionally, Nano Project Supplies Equipment to Additionally, reports are suggesting that Mr. Misa company that Ratan Tata has a stake In. Page 5
Cannot believe that I was removed on grounds of non-performance.
Original Tata Docomo Deal questions about its prudence.
be skewed rather than evenly balanced which should have been an ideal case.
Structure raises many
Indian Hotels, Tata Motors, Tata Steel Europe, Tata Power Mundra and Tata Teleservices are “legacy hotspots”. Capital employed in these companies by 2015 was Rs 196,000 crore, an increase of Rs 64,000 crore in a four-year period due to operational losses, capex and interest. He says any realistic assessment of these businesses could mean a potential write down of Rs 118,000 crore when the entire Tata Group’s networth is just Rs 174,000 crore.
Tata Group’s Stock Performance Under Mr. Mistry Leadership: As it can be seen, majority of the TATA group stocks have performed well. It clearly reveals that the focus of the chairman—Mr. Mistry was just on core businesses therefore the return table seems to
Key Positive Steps Taken by Mistry During His Chairmanship 1. Cashflow Improved: 30 percent Compounded Annual Growth over last 3 years in operating cashflows of the company. 2. Reduction in Debt Strain of The Company: The net debt of the group also decreased by 3.3 percent over past 4 years as cash & cash equivalents improved 3. Significant Restructuring: Several companies from the portfolio was pruned and even changed the structure of the company’s hospitality arm from owning properties to one managing properties across the globe. 4. Digital Platform Expanded: Grasping the need to expand the company’s digital signature in the industry, apart from having the hugely successful TCS, new digital platforms were added.
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5. Digital Platforms added: CliQ- an ecommerce platform Tata iQ which is a big data company and is rapidly growing in the field of data analytics Tata Digital Health which expanded the group’s medical business forays into e-healthcare and telemedicine taking medical care beyond physical impediments 6. TCS doubled its profits during the time overshadowing all competitors 7. Tata Motors focused was shifted on passenger vehicles section aiming for two launches every year. This in turn changed customer perception about the company and lifted Tata Motors’ sales. All in all, many good things had also emerged under Mr. Mistry’s leadership.
Impact of This Exit on Tata Group: The broader view is that the corporate strategy will remain intact in case of major Tata Son companies. Most of the Tata Group companies are run by "independent professional management" who will continue to do the best for their respective companies. Additionally, In the past also group has undergone bigger changes in leadership—and all of them have been well managed. Without any impact on any of the group’s businesses. On a lighter note: What happened to Cyrus is a
Mistry...All That We know is Ratan Said Tata
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INTERNATIONAL
Russia is out of the Woods, Almost Russia not good as use to be —— Interest rates still high — - SHUBHAM ARORA — Putin Vs The World
It’s always best to hedge against the unexpected, but on the sidelines of VTB Capital’s annual Russia Calling investment conference, Russia is still a buy. It’s not as cheap as it used to be, but bonds look great, and stocks will do well if the central bank is right and inflation falls next year. The Market Vectors Russia (RSX) exchange traded fund is up 27.2% year-to -date, beating the 13.6% gain in the MSCI Emerging Markets Index. There’s always room for more upside. “If you believe that the central banks of Japan, U.K. and Europe have admitted defeat on QE, and if you believe that the Fed will hike in December, then you have a reversal of fortunes playing out in global securities whereas the developing markets are in for a decline and the emerging ones, including ones that were beat up like Russia, are on the rise,” says Tadashi Tsukaguchi, a former Black Rock derivatives trader now managing an overlay downside protection fund for Specialized Research and Investment Group in Tokyo. “We have been increasing out exposure to the Russian stock market,” said Peter Elam Hakansson, CIO of East Capital in Oslo. He was short on details when asked what he was looking at by a Barclays fund manager in the audience. Mid-caps. Good corporate governance. That was all he gave them. Amsterdam based investment firm T&E
Inmaxxa’s fund manager Arent Thijsen said Russia, from where he sits, was an overweight. “Heavily overweight Russian stocks and bonds if oil prices stay at $50,” he said. “Metal prices are coming back on track. The economy has adopted to sanctions and in some regards, like agribusiness, it has become a positive force of diversification. It’s under-leveraged and it’s still cheap.” Andrey Kostin, the VTB Bank president that’s become the jovial, charismatic go-to Russian banker on Bloomberg lately, said that Russia’s fundamentals are improving just as external forces are working against it. If it’s not geopolitics that’s got Russia in the cross hairs, its oil markets despite the recent rise, and generally high capital costs that still hinder the economy. “It’s a bad time to be doing well,” Kostin says, adding that over half of the recent bond and equity issuance out of Russia has been purchased by Americans even as Russian financials face sanctions by the U.S. and European Union. By ‘doing well’, Kostin is referring to an economy that’s coming out from sub-zero growth. Corporate earnings are improving, suggesting positive GDP is around the corner. Interest rates are still high, but coming down. They were cut 50 basis points on Sept. 16 to 10%. Inflation is 6.4%, its lowest in two years. However, Elvira Nabiullina, Russia’s central bank chief, said that the market should not get Page 8
ahead of itself and assume if inflation falls, interest rates will be slashed. “We are targeting 4%,” she said. “That’s the long term target and monetary policy will be based on that, not what happens week-to-week with CPI,” she said of core price inflation. Corporate investors have cited inflation as one of their top concerns in deciding whether or not to invest in Russia, according to a recent central bank survey. But Russian bankers also look at inflation figures through squinted eyes. The central bank often changes its basket of items that make up CPI. So oil is falling, that can be increased in the basket. Food prices are rising, so that can be decreased and — presto! — CPI is falling. Such is the argument of many Russian investment bankers. On the spending side, Russia’s Finance Ministry will submit its budget to parliament on Oct. 28. Cuts are expected across the board, including defense spending. And with the exception of a new tax regime on oil and gas, no new taxes are in the works said Anton Siluanov, the country’s FinMin. Fiscal policy for 2017-19 will continue to force the economy to adapt to lower oil prices. “In this sense, higher oil prices might end up not doing us any good,” he said. He did not give a price target. This year’s price target was $50 per barrel Russia’s federal budget deficit is seen declining to 3% in 2017 and even lower in the following three years, according to Siluanov. Russia is trying to move away from its raw material based economy, something every investor has been hearing now since at least 1991 when the Soviet Union collapsed and opened Russia to Western capital. Nabiullina said that her role was to get inflation low enough that Russia becomes an attractive investment for foreign corporations in the non-fuels sector. Russia’s Economic Development Minister, Alexey Ulyukaev, said he expected growth to be driven by consumption and net exports in the coming
quarters. After that, he said the story for growth in Russia will be corporate investments in the second half. Exports have been helped along by a weaker ruble. The currency went from the 30s in 2014 to the 60s against the dollar today. “A weaker ruble helps. A stronger ruble does us no favors,” said PhosAgro CEO Andrey Guryev in a one-on-one discussion at the Crowne Plaza in Moscow on Wednesday. PhosAgro is Russia’s leading producer of fertilizers and competes on world markets with Moscaic. The ruble has been strengthening this year, tracking the fortunes of oil prices. Putin vs. The World Russian president Vladimir Putin paid his annual visit to a packed house on Wednesday, showing up roughly two hours late to a standing room only crowd. Putin gave the usual commentary from his economic team and then took questions from fund managers in the audience. Some questions were prepared in advance. Others were not. Putin said that sanctions were indeed hurting the Russian economy. “We like to hear that sanctions haven’t hurt us, but they have,” he said, citing sanctions against technological transfers in the oil and gas industry. ExxonMobil has been sitting on a roughly $720 million joint venture with Rosneft because of Washington sanctions against Russia; that’s a few hundred million on the sidelines because of the political battle between Russia and the West. Putin said that talk of Germany proposing new sanctions due to Russian support of Syrian strongman Bashar Assad’s bombing raids in Aleppo were “unfortunate.” He also said that the recent cancellation of a trip to France was a mutual decision, first initiated by the French government.
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“They told me that it was not a good time to come because of Syria. I said that was up to you, if you don’t feel comfortable meeting now we can do it another time. And we went back and forth with this and agreed to postpone it,” he said, adding that he and French president François Hollande have “a good working relationship.” Meanwhile, with regards to the U.S. elections that have seen an unusual uptick in antiRussia rhetoric this year, Putin reiterated his stance that Russia will work with
any U.S. president. “Using Russia as a villain doesn’t make me look bad, but it makes all of my country and the Russian people look terrible and this is very unfortunate,” he said. Karl Svelda, CEO of Raiffeisen Bank International, an Austrian bank that’s been in Russia since the 1990s, said Russia’s economy has bottomed. “We are staying in this market,” he said.
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FINHUMOUR - KRISHANT KAUL
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MARKET
Russia is out of the Woods, Almost BSE Sensex
- UTKARSH SUREKA
Top GAINERS Tata Motors Bajaj Auto Coal India
BSE Sensex Top LOSERS ICICI Bank Cipla Asian Paints
Market The markets over the past 14 days have been a roller coaster ride, with BSE falling below the all-important 28000 mark, rising above it, only to fall back down for the past 2 days. With Diwali around the corner, 27,942 doesn’t seem like a bad mark for the auspicious ‘Muhurat Trading’, which is scheduled to take place between 6:30 and 7:30 in the evening on Diwali day. Market BSE
Open 28082.34
Closing 27941.51
High 28179.08
Low 27529.97
NSE
8708.8
8638
8708.95
8520.4
Graph1: BSE Sensex from Oct 3 to Oct 14, 2016
Graph1: NSE Nifty from Oct 3 to Oct 14, 2016 Page 12
STARTUP TRACKER
Money View
- ADYA JHA
Money View is about auto-tracking user’s money —— Raised $5 million in ‘series A’ —— Funding App allows users to track their expenses made through credit card/debit card
If you are you outspending your salary and are facing with a situation where you don’t know where your money is draining and thus have no savings at all, don’t worry, it’s quite a common situation of millions of young professionals throughout the world. So how can you know where your money is going? Money View may be an answer to all your worries. Money View is all about auto-tracking users’ money. Bangalore based Money View was founded by Sanjay Aggarwal and Puneet Agarwal in August, 2014. They raised $5 million in ‘Series A’ funding. The app allows users to track their expenses made through debit cards and credit cards, and can also remind them to pay bills on time. Its unique technology is organizing all this data through mobile SMS. With similar competitors such as Walnut and Gullak, already in the market, it might take time for the startup to make money. Money View is following a strategy similar to that of other customer facing startups, which is to focus on gaining as many customers as possible and not worry about profits at this stage. According to Puneet Agarwal, every Indian with a bank account and a smart phone is the target audience of the company. India is emerging as a mobile and app based economy in the recent years, and hence is offering them a sea of opportunity. Their objective is to help Indians become financially fit through the Money View app. Also, according to the co-founders, Money View is an application designed to give the user a single view into what’s happening with their money. It
tracks all the daily expenses by sifting through the debit card or credit card messages received from the bank on their phone, hence, letting the customer know about their expenditure on a daily, weekly as well as monthly basis. Moreover, it tries to understand their spending pattern and reminds them to pay their bills on time. Unlike other apps, Money View organizes all the data through SMS, without one having to manually segregate them. In the coming years, the company focuses to establish a trusted brand in the segment of personal finance management application. They are also looking at moving from just notifying users about their savings to notifying them about the potential investments that can be made. The app had earlier hit a million downloads this year. The firm claims to be growing at a rate of almost 100% but since the product is free, it doesn’t have an active revenue model in place. In the past one month, the brand had grown and added 3,00,000 new users. It is also looking to invest a part of the funding in consumer acquisition activities and building the brand. According to Gartner, India’s app economy will double over in two years and will reach around Rs 2,000 crore by 2016. An another report from IAMAI says that India does witness 100 million downloads per, and is expected to touch a figure of 272 million from a mere 35 million in 2012. These statistics shows that there is an immense amount of potential for the application market in India. Hence, it can be concluded that a start up like Money View has a great potential in this area.
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FINAPP
Qapital
- AMAN ANAND
Platform: iOs and Android Offered By: Qapital.Inc. Rating: 4.3 on Google Play Store (Rated by 891 users) Installs: 500,000 - 1,000,000 So you’ve been studying MBA for 4 months now but personal budgeting still got you scratching your head? Fret not, you’re not alone in this boat. Although we spend a lot of time talking about budgeting and agree that it makes for smarter spending and saving, we never really get down to it. A major reason is that budgeting isn’t easy. Well let’s talk about Qapital now. Qapital is an app that introduces an easy and intuitive way to save money with specific goals in mind. It lets you set goals and then applies rules to automate your savings. It uses a process called IFTTT (If this, then that) that integrates with your other apps to trigger savings back to Qapital. It lets you create certain “recipes” to trigger savings with a few actions. It could be as simple as setting reward points for running a mile on Nike Plus or completing your diet goals in a row. Here’s an example. Let’s say you’ve been dying to attend some EDM festival (Sunburn, Vh1 Weekender) so you need to save up some cash. So you go into Qapital and create a goal to save Rs 8000. Then you start creating rules. You know you have a problem spending money at RDC so you create a “Spend Less Rule” which means if you come in under your RDC spending cap, that remaining balance will go directly into your EDM Festival savings. You also want to make sure you’re in good shape for stuffing yourself with boiled food, so you set an IFTTT rule to reward your savings account with $5 every day you walk more than your set goal that’s tracked in your pedometer app. And after a few successful months of avoiding RDC and power-walking all over town, you’ve got yourself a ticket to your favorite EDM Festival! The app’s USP is the ability to follow self-set rules. Its intriguing how setting a bunch of triggers enables us to save so much. Just a heads up: - In order to make this app work you’ll have to integrate it with your bank account so that it may direct your savings there. The app maintains a stringent security throughout and rest assured your money would be in safe hands. In short if you’re in the need of a saving’s boost, look no further.
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FINWORD
Abenomics
- ANSHUMAN NANDWANA
Abenomics is nickname for the multi-pronged economic program of Japanese prime minister Shinzō Abe. Abenomics seeks to remedy two decades of stagnation by increasing the nation’s money supply, boosting government spending and enacting reforms to make the economy more competitive. Abenomics is based upon "three arrows" of fiscal stimulus, monetary easing and structural reforms. Abenomics consists of monetary policy, fiscal policy, and economic growth strategies to encourage private investment. Specific policies include inflation targeting at a 2% annual rate, correction of the excessive yen appreciation, setting negative interest rates, radical quantitative easing, expansion of public investment, buying operations of construction bonds by Bank of Japan (BOJ), and revision of the Bank of Japan Act. Is it effective? Abenomics initially had immediate effects on various financial markets in Japan. By February 2013, the Abenomics policy led to a dramatic weakening of the Japanese yen and a 22% rise in the TOPIX stock market index. The unemployment rate in Japan fell from 4.0% in the final quarter of 2012 to 3.7% in the first quarter of 2013, continuing a past trend. The impact on wages and consumer sentiment was more muted. A Kyodo News poll in January 2014 found that 73% of Japanese respondents had not personally noticed the effects of Abenomics, only 28 percent expected to see a pay raise, and nearly 70% were considering cutting back spending following the increase in the consumption tax. Overall with time it was considered to be overhyped and underappreciated. The weapons deployed by the Bank of Japan (BoJ)—and, by extension, other central banks—since the financial crisis do not work. The BoJ has more than doubled the size of its balance-sheet since April 2013 and imposed a sub-zero interest rate in February; still more easing may be on the way. Yet its 2% inflation target remains a distant dream. Abenomics in overall, has fallen short of its targets and its overblown rhetoric. That makes it easy to dismiss as a failure. Japan’s stagnation had become a self-fulfilling prophecy; Abenomics could succeed only if enough people believed it would. This is a final lesson that Japan’s economic experiment can impart to the rest of the world. Hence, we can say that policies don’t work alone as we see in case of all developed economies. It’s the people themselves who make these policies effective. What next this world does to fulfil this endless want of growth remain to be seen.
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DID YOU KNOW
- HRISHIKESH GULKOTWAR
A dollar bill usually makes it through around 18 months of use before it wears out. First woman to appear on a US coin was Queen Isabella of Spain The Note 7 fiasco cost South Korea 0.1 to 0.2 in GDP Samsung mobile division profits fell by 96% due to the Note 7 crisis Benjamin Franklin is the only non US president to appear on a Dollar bill The first stock exchange can be traced back to Antwerp, Belgium in 1460. Amsterdam stock exchange (now a part of Euronext Exchange) first listed shares in 1602. The first stock to be traded was of Dutch East India company. Legendary investor Warren Buffett bought a 40-acre farm at age 14 with $1,200 in savings from delivering newspapers. Colgate's first toothpaste, introduced in 1873, was packaged in a jar. Toothpaste was first packaged in a tube in 1896. The largest lottery jackpot in U.S. history was $656 million for a Mega Millions tickets in March 2012. There were three winners, and the total cash payout was $474 million. Credit cards were not always made of plastic. There have been credit tokens made from metal coins, metal plates, and celluloid, metal, fiber, and paper cards.
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FINQUIZ
1. Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate? [A]A teenage worker with few qualifications [B] A manual worker with fifteen years of work experience [C]A professional worker with a university degree [D]All three are equally likely to find it difficult to get a job
- AFROZ
2. In context with the falling rupee, a leading newspapers wrote recently that “RBI has used up most of the available ammunition to prevent the rupee’s slide in the over-the counter market, but without much success“. Which among the following steps was taken by RBI , that has been referred to available ammunition in this statement? [A]RBI sold the foreign currency in market [B]RBI purchased the foreign currency from market [C]RBI purchased the stocks from various stock exchanges in India [D]RBI Revaluated the Indian Rupee 3. A news headline in a leading Business daily mentions that Prime Minister Office (PMO) has proposed to create SPVs to Speed Up Infrastructure Projects. Which among the following is a correct statement in context with an SPV here? [A]SPV refers to the process of inviting tenders for large projects [B]SPV refers to special entity or company created for a particular purpose or project [C]SPV refers to an agreement between the Government and big corporate contractors [D]SPV is a project which is completed in Public Private Partnership 4. We read in the newspapers that while doing the regulatory filing, social networking firm Facebook, which is primed for the biggest-ever share offering by an internet firm, has mentioned in its documents that “Users in _____, ____and ____represent key sources of our growth“. The three countries mentioned in this statement as are follows: [A]India, US, UK [B]India, China, US [C]India, US, Brazil [D]India, US, UK 5. Which of the following statements about the burden of a tax is correct? [A]The tax burden generated from a tax placed on a good consumers perceive to be a necessity will fall most heavily on the sellers of the good. [B]The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected [C]The distribution of the burden of a tax is determined by the relative elasticities of supply and demand and is not determined by legislation [D]The tax burden falls most heavily on the side of the market (buyers or sellers) that is most willing to leave the market when price movements are unfavourable to them. Page 17
FINQUIZ
6. A news in a leading Business Newspaper mentions that “The nutraceuticals segment in India is expected to touch $5 billion by 2015, from $2 billion currently.“. What are these nutraceuticals? [A]Neutraceuticals are food or food product that reportedly provide health and medical benefits [B]Neutraceuticals are protein and glycoprotein, present in barley and some other cereals [C]Neutraceuticals are medicines derived from food products [D]Neutraceuticals are Vitamin fortified cereals 7. Which of the following is a variable cost in the short run? [A]rent on the factory [B]wages paid to factory labour [C]interest payments on borrowed financial capital [D]payment on the lease for factory equipment 8. A retrospective amendment in income tax law that could force British telecom operator Vodafone to pay Rs. 20,300 crore as tax, interest and penalty, has been a hot topic in current politico-economical arena. The Vodafone asked to pay tax on its acquisition of Hutchison’s stake in the $11.2-billion Hutchison Essar deal, which was executed in a tax heaven. Which among the following was this tax heaven? [A]Bahamas [B]Seychelles [C]Cayman Islands [D]Virgin Islands 9. Joe has ten pairs of football boots and Sue has none. A pair of football boots costs €50 to produce. If Joe values an additional pair of boots at €100 and Sue values a pair of boots at €40, then to maximize [A]efficiency Sue should receive the glove. [B]efficiency Joe should receive the glove. [C]equity, Joe should receive the glove. [D]consumer surplus both should receive a glove. 10. Bonds issued by corporations and exposed to default risk are classified as [A]corporation bonds [B]default bonds [C]risk bonds [D]zero risk bonds
Answers: 1A 6A
2A 7B
3B 8C Page 18
4C 9B
5C 10A
LIFE @ IMT
Amidst all the group project submissions, Mid-term quizzes and Guest lectures, Passion-the flagship event of IMT started with a bang with the theme of Untying the Gordian knot! With a perfect blend of cultural and management Events, Passion was an Energetic and Exhilarating experience for all the First years as well as Second year students.
- PRANAV GOYAL
It started its first day with management events such as Business Conclave which was an insightful interaction with the business leaders of the country. The first day also included gaming competitions for the Counter Strike, FIFA and DOTA lovers. The Management events of the second day included Model United Nations and the Curtain raising Cultural events which included ‘Symphony’ the solo singing competition and ‘The Battle of the Bands’ where scintillating and energetic Rock bands of various colleges participated and entertained us with their amazing performances followed by a live Gig by ‘SAAR’. The night was made hilarious by Kenny Sebastian with his witty and humorous comedy show which delighted the entire campus. Finally, the final day of passion was jam packed firstly with the concluding debates of Model United Nations, various other management competitions like Be a Baniya, V-Govern etc. Also different Fine Arts competitions like Inked and Bob the Builder filled the Amphitheatre with Colors. The cultural events were made all the more elated by the dancing competitions- ‘Beat the Beat’ and ‘Footloose’. The Finale events included ‘Panache’ which described beautiful social messages through a fashion show and the most awaited ‘Coke Studio’ which filled the campus with the euphonious and exultant performances by Sachin-Jigar, famous Bollywood music composers.
But All Play and No Work is not policy at which a b-school works, so immediately after an amazing experience of Passion were the End term exams for the first years which were as always Exhausting. But it all feels good when you go home after so many months completing your two terms @IMT. For all the people who are enjoying their vacations at home or elsewhere, we wish them a very happy and prosperous Diwali.
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