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KERENG/2002/6803

Bahrain BD 1.50 Kuwait KD 1.50 Oman OR 1.50, Saudi Arabia SR 12.00 UAE DH 10.00 UK £ 3.00, US $ 3.00

VOLUME 10 ISSUE 9 SEPT-OCT 2011

Rs. 50


KERENG/2002/6803


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EDITORIAL www.seasonalmagazine.com

MAGAZINE

Seasonal Vol 10 Issue 9 Sept-Oct 2011

Managing Editor Jason D Pavoratti Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D

The economic discussions about a whole country have boiled down to just one thing - will RBI hike rates again or not in September? It is as if the whole economy revolves around this single metric - interest rate, and nothing else. What could be more absurd than this? It is high-time observers call this bluff. While government’s recent extension of term to Dr. D Subbarao was seen as an endorsement for the rate hikes, Dr. Kaushik Basu’s yesterday’s veiled threat to RBI in his capacity as Chief Economical Advisor to FinMin is seen as a signal to back off from another rate hike. Meanwhile, clever private banks are again trying to time an RBI policy reversal. In what should be termed an almost illegitimate move, lenders including ICICI Bank and HDFC Bank, have presented fixed-now-floatinglater home loans.

Editorial & Business Office Cochin: 36/1924 E, Kaloor-Kadavanthra Road, Near IGNOU, Kaloor, Cochin-17. Ph:0484- 2345876, 2534377, 2340080 Mob. 09947141362, 09947258505 Mumbai: 202, Woodland Heights Building, St. Martins Road, Bandra West, Mumbai -400 050, Mobile: 9757076197 Ph: 022-26401362, 26401360, Bangalore: House No: 493, Block 3 3rd Main, HBR Layout, Bangalore-4209731984836, Email:skmagazine@gmail.com www.seasonalmagazine.com UK Office: “CRONAN”, Boundaries Road Feltham, Middlesex, UK TW13 5DR Ph: 020 8890 0045, Mob: 00447947181950 Email: petecarlsons@gmail.com Reg No: KERENG/2002/6803 Printed & Published by Jaison D on behalf of PeteCarlson Solutions Pvt. Ltd. at Cochin. Printed at Rathna Offset Printers, Chennai-14. All Rights Reserved by PeteCarlson Solutions Pvt. Ltd. No part of this publication may be reproduced by any means, including electronic, without the prior written permission of the publisher. All India Distributor: India Book House, Mumbai UAE Distributor: Malik News Agency & Distributors Dubai All health related articles are for first information purposes only. Always consult your doctor before taking any decison affecting your health.

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india feels the need for creative economics

MEMBER

The idea is simple. They think that RBI has already gone too far, and would reverse the interest movements from up to down. So, what is the best way to lock in high interest rates for loans for a greater period of time? Cite chances of further rate hikes and offer consumers these kinds of teaser loans. Being big-time lenders they can gauge many things from the pulse of credit growth. And they were correct too when a dismal set of numbers hit the street by way of IIP numbers. Proof had finally come that rate hikes were hurting. What else can RBI do than reverse the rate movement? Bankers also had some cues from Europe and South America. Central Bankers in countries like Turkey and Brazil had recently taken a sharp uturn in rate hikes, catching even tooclever institutional investors by surprise. So, the idea over here was that India’s RBI had a model to follow. But too bad for these bankers that life is not that simple. Brazil’s 12% interest rate is still a good 4% above India’s 8%, and compounding the ‘problem’ for these bankers, India enjoys almost double the GDP growth rate of Brazil. In short, there is still a long way for rates to go if inflationary pressures continue. The IIP numbers are also a bit dated, being of July, and nobody expects that this trend has continued in August or September. August inflation number is also just out, and has overshot expectaions, at 9.78% These bankers have been caught on the wrong foot by RBI earlier, and it is likely to be repeated. Despite IIP data and despite international examples, RBI might just go as it thinks right and increase rates, not just once with a 25 bps, but twice, and may be in higher increments. And in any case, even if it doesn’t increase the rates right now, it is going to only pause, and it is going to pause at these high rates for a long long time. One year more? Maybe even longer. And it will be watching the inflationary trends closely to chip in with further hikes if necessary. The reasons are simple enough. Despite public sentiment to the contrary, a high interest regime is not the end of the world. What feeds this almost insane idea is the bearish trends that develop in stock markets during high interest regimes.


But that is purely due to two factors - one, funds get withdrawn from the markets to be invested in safer avenues like bank FDs that pay 10 or 11 or near 12% now. Secondly, there is a hit on the stocks of long gestation projects like infra and power due to the higher interest costs. But if you set aside the stock market effect, a high interest regime is not that bad. Of course, your EMIs have become heavier or longer or both. But the flipside is not only that your deposits now attract more interest; but rather you are always better off with high interest rate than high inflation, as inflation has this inherent habit of going over the roof, just like the onion fiasco proved. And there lies the crux of this debate. That the inflation situation would have been far worse, if not for RBI’s timely rate hikes. It is a position no economist or even economics-sceptic will refute. So, what contributed to this inflationary trend? Two things mainly, firstly growth concerns and secondly the exponential increase in money supply. Looking closer, we can see that both are really one and the same - growth concerns, as it is deficits that drive up money supply. No nation is devoid of this concern and any nation’s inflation is almost directly proportional to its growth concerns, except for some grossly mismanaged countries with sky-high inflation. We need growth to generate more jobs, more well-paying jobs, we need growth to lift up more from poverty to the middleclass. This is an unshakeable conviction shared by all respected economists, right from Amratya Sen to Paul Krugman. And growth will bring with it, its sibling, high inflation. What the Indian Government is trying to do is this stuff - they are trying to desperately grow, and asking RBI to fend off inflation by its own. But it is high time to rethink whether this is the right strategy. And that brings us to another side of this equation. Growth concerns, inflationary trends, and interest rates all remaining such, still there is a whole lot to do on other fronts to improve the economy. As a small example take the issue of speed of governance. Ever since CAG boldly did its duty in unravelling two major scams, a few aspects of the government machinery have almost come to a standstill. Anybody watching the government’s output - as reflected in the stream of ministerial and cabinet decisions published by PIB daily - would attest to this phenomenon. The same effect accelerated during Anna Hazare’s courageous anti-corruption campaign. There is a case for caution, of course, but this kind of policy paralysis was uncalled for. Even many legitimate projects and initiatives were stalled. It was not the fault of CAG or Hazare, but the fault of the administrative structure that all politicians and bureaucrats continue to worship. At par with fighting corruption is the need to overhaul the administrative and judicial machinery to speed things up. Even official financial incentives can be considered for speedy implementation of far-reaching and crucial projects and initiatives. Even for its famed check-and-double-check mechanisms, the professionalism of the administrative machinery that was designed during the British Raj is highly doubtful. Another example is the much-needed policy changes regarding commodities like crude. Everyone agrees that more than 50% of our inflation is imported due to crude soaring, but we are yet to see a government that has come forward to seriously curb the consumption of petroleum products through various possible incentives. There has also been no creativity about tapping the huge amount of productive money lying waste as gold. Even in this 2011, at astronomical prices, the money flowing into gold by way of gold imports is obnoxious. Indians continue to be bullish on gold, almost in a mindless fashion, little knowing that if and when America succeeds in correcting its economic course, gold’s safe haven status is set to tumble before the dollar, paving the way for what would be one of the largest correction in the precious metal. Sadly enough, Dr. Kaushik Basu’s yesterday’s outburst too didn’t offer any creative solutions, beyond merely suggesting that it is better that RBI leaves the rates untouched. It is high-time that a public discourse is started on the innovative ways to ensure high, sustainable, and equitable growth. Conventional economics will make us survive, but it is only creativity that is going to make us a superpower if at all. John Antony

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MAGAZINE

Seasonal

Contents INTERNATIONAL

World's Top 15 Hotspots: Asia Rules The world's largest companies prefer booming Asian economies to set up their offices, reflecting a shift in global economic power, according to global real estate consultant C B Richard Ellis (CBRE). The study, Business Footprints, analysed the office locations of 280 of the world's largest companies across 232 cities.

BUSINESS

World's 20 Most Valuable Companies Apple is all set to become the world's most valuable company by surpassing Exxon Mobil. One of the world's biggest technology companies, Apple's market capitalisation is expected to zoom to a record high of $480 billion in the next six months.

IN FOCUS

How LIC’s Investment Policy Helps India It is no secret that one of the strengths of Indian equity market is the role played by Domestic Institutional Investors. And it is no secret that leading the pack of... POLITICS

Mayawati's Budget: Rs 50 crore for Personal Comfort! Uttar Pradesh Chief Minister Mayawati's state supplementary budget has an allocation of more than Rs 50..

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SPORTS

Who Claims We are No.1? The English tour has grimly reminded India that the No.1 rank it has enjoyed for 20 months was largely ornamental. In fact, chinks in the Indian armour were already visible in its inability to deliver convincing wins overseas ondemand or under challenging situations. But this time around, India’s over-reliance on Zaheer and Sehwag, as well clear mismanagement in handling injuries also became glaringly evident, pointing to problems originating..


COVER STORY

India Wakes Up to Clubbing Once upon a time clubs in India were all about aristocracy. No wonder in that because clubbing and partying in India have their roots in British Raj. Gentlemen's clubs were invented by the British. It was their outgoing nature and networking approach that had created the club culture, together with bigger phenomena like the ‘Empire on Which the Sun Never Sets’, and of course, what was to become the USA. One distinguishing nature of the British was that they partied as hard as they worked. Their adventurous men were fiercely independent and needed to be away from both their family and work, and be with like-minded gentlemen to play, party..

INVESTMENTS

Which is the Best Investment Option in Gold: E-Gold or Gold ETFs? 42% was the one-year (August 2010August 2011) return delivered by egold compared with 40% for gold ETFs. While the marginal difference in returns can be attributed to the costeffectiveness of e-gold, both these avenues provide ease of investing by allowing people to hold gold in the demat form.

AUTO RELATIONSHIPS

Marital Conflict May Not Ease Over Time If you argue a lot now with your spouse, chances are you'll still be arguing the same amount next year, and the next, and the next, new research shows. But Researchers Say a 'HighConflict' Marriage Isn't Always a Sign of an Unhappy Marriage..

TOP 6: Most Affordable Performance Bikes in India So you've always wanted to buy a good bike but didn't know which to buy? Before we start, let us clarify a few things. First and foremost, the machines listed here are not 'performance' bikes by international standards..

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MAGAZINE

Seasonal

Contents GADGETS

Affordable Tablets in India under Rs 20,000 If you are searching for low cost tablets in India, you must be aware of the fact that most of these..

SHOWBIZ

DO YOU KNOW THESE STAR SIBLINGS? Here is an introduction to the lesser-known siblings of our Bollywood stars. PERSONAL FINANCE HEALTH

The Truth about Metabolism When it comes to weight loss and dieting, one word that you hear often is “metabolism.� But what is metabolism, and how does it play a role in your weight loss goals and what is its value to you? Metabolism which literally means change or transformation is the amount of energy or calories your body burns to maintain vital functions. At every moment, be it sleeping, shopping or exercising...

How I got my home loan without a guarantor Owing a home is a dream come true for most of us and I am no different. This is my personal story that I want to share so that.. TECHNOLOGY

Now, LEDs to Double Up for Wireless Networking German researchers have discovered how to fill a room with 800 megabits per second of wireless data using an inexpensive LED setup. "Using red-blue-green-white.. BANKING

BUSINESS

Union Bank of India Prepared for a Positive Turnaround

India's Billionaire Kids They are India's richest children. Heirs to India's most wealthy companies, they are in an enviable position. Some of them..

Union Bank has several pluses going for it like its superior RoE, the continuity in top management, its effective re-branding, its...

AUTO

Second Largest European Carmaker Enters India French auto maker PSA Peugeot-Citroen is planing to invest about 650 million..

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IN FOCUS

What Makes Manappuram Outperform Peers? August was not an easy month for stocks. NBFC stocks were especially hit during the first half, owing to the high interest regime as well as the impending RBI...


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International

SEASONAL MAGAZINE

World's Top 15 Hotspots: Asia

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SEASONAL MAGAZINE

Rules

The world's largest companies prefer booming Asian economies to set up their offices, reflecting a shift in global economic power, according to global real estate consultant C B Richard Ellis (CBRE). The study, Business Footprints, analysed the office locations of 280 of the world's largest companies across 232 cities.

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International Singapore 1. Hong Kong NO OF COMPANIES: 191

SEASONAL MAGAZINE

Hong Kong, which is home to 68.2 per cent of the companies surveyed, was ranked the world's number one business destination. The combined impact of rapid growth in mainland China's major markets, easy access to other major Asian economies, and Asia's emergence from the global recession have enabled Hong Kong to act as a gateway between the East and the West, says the CBRE study. The access to a skilled, varied and often lowcost workforce for international businesses is another attraction. Hong Kong boasts the world's third-lowest tax regime globally; corporation tax at a maximum of 16.5 per cent, personal income tax at a maximum of 15 per cent and no sales tax or VAT all provide an enticing scenario for international companies and workforces, CBRE points out.

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2. Singapore NO OF COMPANIES: 189 Singapore, the fastest growing economy in the world in 2010, has 67.5 per cent of surveyed companies. Singapore has a highly developed market-based economy and is the world's fourth leading financial centre. Singapore has one of the busiest ports in the world. It is the world's fourth largest foreignexchange trading centre after London, New York and Tokyo. The World Bank ranks Singapore as the world's top logistics hub.

Madrid

Tokyo

3. Tokyo NO OF COMPANIES: 179 Japan's capital Tokyo, a bustling business hub is host to 63.9 per cent of the companies. Tokyo has been described as one of the three 'command centres' for the world economy, along with New York City and London. In 2010, Tokyo was named the second most expensive city for expatriate employees and ranked the fourth 'Most Liveable City'.

Hong Kong


8. Madrid NO OF COMPANIES: 167

London

4. London

5. Shanghai

NO OF COMPANIES: 177

NO OF COMPANIES: 172

London is the only city in the Western world to be ranked among the top five most popular cities worldwide, along

One of the world's major financial centres, Shanghai is now aiming to be an international shipping centre. The city which reflects the booming economy of mainland China, is one of the most prosperous cities in the world. Its cosmopolitan character, affluent consumers, and highly educated skilled labour force make it attractive to overseas investors. Shanghai has recorded double-digit growth for 15 consecutive years.

Moscow

Madrid is a major centre for international business and commerce. It is one of Europe's largest financial centres and the largest in Spain. Madrid has become the 23rd richest city in the world and third richest in Europe in terms of absolute GDP Madrid's stable GDP, exchange rate and strong bond market, coupled with a high standard of living makes it an attrative destination for companies.

7. Beijing

Beijing

NO OF COMPANIES: 169

6. Moscow NO OF COMPANIES: 170 Moscow is one of largest city economies in Europe. It is the financial centre of Russia and home to the country's largest banks and many of its largest companies. Moscow accounts for 17 per cent of retail sales in Russia and 13 per cent of all construction activity. Several business sectors in Moscow have shown high rates of growth.

Beijing is home to 26 Fortune Global 500 companies, the third most in the world after Tokyo and Paris. The Beijing central business district is home to a number of corporate regional headquarters, shopping avenues and luxury housing complexes. Beijing prides to have many innovative entrepre neurs and high-growth startup companies.The city has seen a boom in real estate and automobile sectors.

SEASONAL MAGAZINE

Shanghai

with the rapidly emerging Eastern powers. London ranks as a premier global location for companies in the banking and finance sector, with 92 per cent of companies having an office in the cities, according to CBRE. London was ranked as the most popular location for professional services companies, with Hong Kong ranked at second place.

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10. Paris

12. Warsaw

9. Dubai

NO OF COMPANIES: 156

NO OF COMPANIES: 150

NO OF COMPANIES: 157

Paris has been ranked among the three most important and influential cities in the world. It has been rated as one of the three 'European cities of the future', by Financial Times. It has also been ranked among the top ten most liveable cities in the world according to the British review Monocle. Paris is also the world's most expensive city to live in, according to the Economist Intelligence Unit in 2010.

Dubai has emerged as a global city and a business hub.Dubai was ranked seventh globally, with the presence of 70 per cent of the companies surveyed. The CBRE report found a number of cities in less developed emerging markets are home to a significant proportion of international companies. Besides the oil industry, Dubai gets its revenue from tourism, real estate and financial services.

New York

11. New York NO OF COMPANIES: 155 New York is ranked as a premier location globally for companies in the banking and finance sector, with 92 per cent of companies having an office in the cities, according to CBRE. New York was the most popular business location in the Americas, but ranked only 11th globally, with 55.4 per cent of companies located there. This in part reflects the expansive size of the United States, which offers international companies numerous choices to access its markets, says the CBRE report. Among countries, the United States ranks first with 89.6 per cent of global companies represented there.

SEASONAL MAGAZINE

Warsaw

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Warsaw, an alpha-world city is home to 53 per cent of international companies. The capital city of Poland, Warsaw is considered to be one of the biggest emerging markets. Warsaw was ranked as one of the world's most expensive cities to live in. It has been classified as an Alpha-world city.

Dubai


14. Sao Paulo 13. Milan

NO OF COMPANIES: 146

NO OF COMPANIES: 147

The largest city in Brazil, Sao Paulo is among the five largest metropolitan areas. Sao Paulo is the tenth richest city in the world, and is expected to be the 6th richest in 2025. Sao Paulo's economy is

One of Europe's main transportation and industrial hubs, Milan is the European Union's 10th most important centre for business and finance. Milan is recognised as a world fashion and design capital Prada, Dolce & Gabbana, Moschino and Missoni are headquartered in the city. Milan is the world's 11th most expensive city for expatriate employees and world's 12th most expensive city to live in.

driven by the tertiary sector, focusing on services and businesses for the country. The city is also unique among Brazilian cities for its large number of foreign corporations. Sao Paulo has the largest concentration of German businesses worldwide.

15. Bangkok NO OF COMPANIES: 137 Bangkok, the capital city of Thailand is also its commercial hub. Thailand has remained as a mainstay of the Southeast Asian economy and a key centre in Asian business. Bangkok is home to the headquarters of all of Thailand's major commercial banks and financial institutions and a number of international banks.

Milan

Bangkok

SEASONAL MAGAZINE

Paris

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Technology

W

e turn the LEDs off and on in very rapid succession and transfer the information as ones and zeros," he explained. "The modulation of the light is imperceptible to the human eye.

Now, LEDs to Double Up for Wireless Networking erman researchers have discovered how to fill a room with 800 megabits per second of wireless data using an inexpensive LED setup. "Using red-blue-green-white light LEDs, we were able to transmit 800Mbit/s in the lab," said researcher KlausDieter Langer. "That is a world record for the [visible light communication] method." Langer, working at Berlin's Heinrich Hertz Institute, an arm of Fraunhofer Institute for Telecommunications, also described an earlier experiment that reached 100Mbit/s using only white-light LEDs.

SEASONAL MAGAZINE

"We turn the LEDs off and on in very rapid succession and transfer the information as ones and zeros," he explained. "The modulation of the light is imperceptible to the human eye.

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On the receiving end is a simple photo diode, and circuitry that converts the diode's signals into a digital data stream. According to Langer, advantages of this method include the simplicity of converting the LEDs into signal-sending devices, and the elimination of cabling as a signal-transferring medium. In the 100 Mbit/s experiment, the

signalling LEDs were placed on the ceiling, and the transmission was error-free in an area of 10 square meters, received by a group of four photo diode–equipped laptops.

moving between the LEDs and the photo diode, for example. The inability for light to penetrate walls also limits VLC to special-case scenarios.

"We transferred four videos in HD quality to four different laptops at the same time," said another HHI researcher, Anagnostis Paraske vopoulos.

As limited as VLC may seem, when The Reg spoke in June with Aicha Evans, wireless engineering manager at Intel, she told us that "a lot of people are talking about visible light."

Using visible light as a signaling medium rather than radio waves has clear advantages in areas such as hospitals and aircraft where radio transmission is not possible and where cabling would be prohibitively expensive. The most obvious disadvantage of visible light communication (VLC) is that the signal can be easily blocked by any solid object – a hand

Although Evans admitted that "it's still science fiction," VLC may very well show its value in the last few meters of a data stream. If at this early stage of its evolution it's already being demonstrated at 800Mbit/s speeds, VLC may very well prove to be a serviceable highspeed, within-four-walls broacast WLAN in future implementations.


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Business

World's 20 Most

Valuable

Companies

SEASONAL MAGAZINE

Apple is all set to become the world's most valuable company by surpassing Exxon Mobil. One of the world's biggest technology companies, Apple's market capitalisation is expected to zoom to a record high of $480 billion in the next six months.

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SEASONAL MAGAZINE


Exxon Mobil (United States) Sector: Oil & gas The world's largest publicly traded international oil and gas company, Exxon Mobil, was formed on November 30, 1999, with the merger of Exxon and Mobil. Market cap: $422.57 bn Turnover: $341.578 bn Net income: $30.460 bn Total assets: $298.98 bn Employees: 83,600 (Market capitalisation of all companies as on July 22, 2011)

Apple (United States)

PetroChina (China)

Sector: Technology hardware & equipment Apple's market capitali sation stands at $364.55 billion as of July 22, 2011. It stock price is at $394.30, up 20 per cent from the start of the year.

Sector: Oil & gas PetroChina Company is the largest oil and gas producer and distributor in China. Market cap: $273.27 bn Turnover: $222.332 bn Net income: $21.23 bn Total assets: $251.279 bn Employees: 552,698

Apple will become the most valuable US company when the stock hits $444. Apple quarterly profit has zoomed by more than 125 percent to $7.31 billion, backed by a huge demand for iPhones and iPads. Market cap: $364.55 billion Turnover: $65.067 bn Net income: $14.013 bn Total assets: $75.183 bn Employees: 49,400

Industrial & Commercial Bank of China (China) Sector: Banking Founded on January 1, 1984, ICBC is the largest Bank of China's 'Big Four' state-owned commercial banks. Market cap: $235.772 bn Net income: $25.059.3 bn Total assets: $2042.093 bn Employees: 389,827

Microsoft (United States)

SEASONAL MAGAZINE

Royal Dutch Shell (UK)

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Sector: Oil & gas A global oil and gas company headquartered in The Hague, the Netherlands, it is one of the largest energy companies. Market cap: $233.17 bn Turnover: $373.259 bn Net income: $20.411 bn Total assets: $317.199 Employees: 97,000

Sector: Software & computer services Established on April 4, 1975, software giant Microsoft develops and manufactures a wide range of products and services. Market cap: $232.15 bn Turnover: $61.989 bn Net income: $18.760 bn Total assets: $86.113 bn Employees: 89,000


IBM (United States)

Petrobras (Brazil)

Sector: Software & computer services International Business Machines, founded in 1911, manufactures and sells computer hardware and software. Market cap: $225.83 bn Turnover: $99.870 bn Net income: $14.833 bn Total assets: $110.232 bn Employees: 399,409

Sector: Oil & gas Petrobras is the largest company in Latin America by market capitalisation and revenue. Petrobras controls significant oil and energy assets in 18 countries. Market cap: $217.19 bn Turnover: $128.478 bn Net income: $21,198 mn Total assets: $309.336 bn Employees: 80,492

BHP Billiton (Australia/UK)

Nestle (Switzerland) Sector: Food processing Nestle is the largest food and nutrition company in the world, founded and headquartered in Vevey, Switzerland. Market cap: $209.38 bn Turnover:$112.005 bn Net income:$36.651 bn Total assets:$117.483 bn Employees: 281,000

Sector: Mining BHP Billiton is the world's largest mining company. It was created in 2001 by the merger of Australia's Broken Hill Proprietary Company (BHP) and the AngloDutch Billiton. Market cap: $204.45 bn Turnover: $50.418 bn Net income:$12.148 bn Total assets: $83.835 bn Employees: 39,570

Chevron (United States) Sector: Oil & gas Chevron Corporation, an American multinational energy corporation is active in more than 180 countries. Market cap: $215.78 bn Turnover: $189.607 bn Net income: $19.024 bn Total assets: $183.918 bn Employees: 62,000

General Electric (US) Sector: General industrials From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in a number of industries across more than 100 countries. Market cap: $202.19 bn Turnover: $149.060 bn Net income: $11.620 bn Total assets: $751.200

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Wal-Mart Stores (US) China Mobile (Hong Kong) Sector: Mobile telecommunications The world's most valuable mobile telecommunications company in the world, it is listed on both the NYSE and the Hong Kong stock exchange. As of March 2011, China Mobile is the world's largest mobile phone operator with over 600 million subscribers. Market cap: $198.09 bn Turnover: $71.750 bn Net income: $17.691 bn Total assets: $129.297 bn Employees: 164,336

Procter & Gamble

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(US) -

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Sector: Household and construction A Fortune 500 American multinational corporation, it manufactures a a wide range of consumer goods. Market cap: $179.95 bn Turnover: $78.938 bn Net income: $12.736 bn Total assets: $128.172 bn Employees: 127,000

Berkshire Hathaway (US) Sector: Non-life insurance Founded by Warren Buffett, Berkshire owns a diverse range of businesses including insurance, confectionery, retail, railroad, home furnishings, encyclopedias, manufacturers of vacuum cleaners, jewelry sales and newspaper publishing. Market cap: $191.26 bn Net income: $12.967 bn Total assets: $372.229 bn Employees: 260,000

AT&T (United States) Sector: Fixed line telecommunications AT&T Inc is a leader in telecommunication services, including cell phones, wireless, high speed internet and digital TV services. Market cap: $179.56 bn Turnover: $124.280 bn Net income: $19.864 bn Total assets: $268.488 bn Employees: 265,410

Sector: Retail Wal-Mart Stores, Inc runs a chain of large discount department stores and a chain of warehouse stores. The company was founded by Sam Walton in 1962 has 8,500 stores in 15 countries. Market cap: $189.32 bn Turnover: $418.952 bn Net income: $16,389 mn Total assets: $180.336 bn Employees: 100,000

China Construction Bank (China) Sector: Banking China Construction Bank is ranked as the china's second largest and the eighth largest bank in the world by market capitalisation. Market cap: $186.136 bn Net income: $20.460 bn Total assets: $1640.263 bn Employees: 301,537

HSBC (UK) Sector: Banking Founded in 1991, it was the world's second-largest banking and financial services group and secondlargest public company according to Forbes magazine. Market cap: $176.72 bn Net income: $13.302 bn Total assets: $2459.129 bn Employees: 295,061

Gazprom (Russia) Sector: Oil & gas Founded in 1989, Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Market cap: $171.75 bn Turnover: $117.623 bn Net income: $31.671 bn Total assets: $302.017 bn Employees: 393,000


Sports

By Carl Jaison

Who Claims We are No.1? The English tour has grimly reminded India that the No.1 rank it has enjoyed for 20 months was largely ornamental. In fact, chinks in the Indian armour were already visible in its inability to deliver convincing wins overseas on-demand or under challenging situations. But this time around, India’s over-reliance on Zaheer and Sehwag, as well clear mis-management in handling injuries also became glaringly evident, pointing to problems originating from the selection phase onwards. It is high-time that Indian cricket establishment wakes up to the fact that the No.1 rank was just an acknowledgement of past performance, and not a certification for future prowess. “The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather is a lack of will,” said Vince Lombardi, the famous American Football coach who tirelessly strived to achieve his prime goal of pulling American Football to the top of the sporting world, but hiccupped midway and lost track of things. But his never-say-die attitude and relentless passion for the game has ensured that American football is in safe hands in the present era.

There were huge celebrations and excitement when the Dhoni and Co reached the pinnacle of Test arena, and many terming them as “the best team to play for India”. Personal milestones were achieved, leadership qualities hailed and young bloods were showered praise. In the past 20 months, India basked in the glory

of their “No.1 test status” and proving that they were unbeatable at home with a handful of outstanding victories. But that is all there is to it. Whosoever claims that if a team attains No.1 position in the rankings, it would reflect that they are indomitable in all corners of the world? India hasn’t dominated the Aussies in their backyard nor have they silenced the Lankan Lions in the tear-drop nation. Victories against relatively weaker West Indian and Kiwi outfits doesn’t stand to show India’s supremacy in this format of cricket. Singular victories in the foreign tours against Lanka and South Africa are praiseworthy but far from satisfactory since the two series ended up being a drawn affair. Victories over Sri Lanka and Australia in our own den isn’t a matter of acclaiming worldbeating credits. But, even then, India wormed through the rankings and bit onto their hotspot for a 20-month period. But the events that unfolded during the previous fortnight came

The quandary with the Indian cricket team was that, in the last few seasons, they have tasted minimal failures. They conquered the Kiwis in New Zealand, stunned the mighty South Africans, humbled the Aussie outfit, and destroyed the Caribbean boys in similarly fashioned victories. And swiftly, India sky-rocketed to the No.1 test ranking leaving the Lankans and Aussies morally beaten.

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as a shocker to every Indian fan out there. India was whitewashed and lambasted by a hungrylooking England, who crushed the champs in all departments to bring glory to their nation with a convincing 4-0 series margin. That’s not all. They took over the reins of Test supremacy beating the former “20-month old” champs and India was left baffled. During this disastrous tour for India, nothing worked out right. They were overpowered by the Englishmen on all quarters and surrendered meekly without even putting up a decent fight in any of the tests. India squandered a potential victory opportunity at Trent Bridge and allowed England to crawl back into the match. The result: England won by a whopping 319 runs, which is incidentally the biggest win by a team that conceded first innings lead. India let go of the best chance they had to wrap up the test, a mistake that champion sides don’t commit. So, do you consider India the no.1 team? This anecdote is of the recent West Indian tour where India was set a target of below 300 runs to win the final test. Even with the islanders fielding a not-so-

During this disastrous tour for India, nothing worked out right. They were overpowered by the Englishmen on all quarters and surrendered meekly without even putting up a decent fight in any of the tests. India squandered a potential victory opportunity at Trent Bridge and allowed England to crawl back into the match.

impressive bowling attack, India’s approach to the run-chase was pathetic. We looked defensive in our game-plan and what was playing around in the team’s mind was to avoid defeat, not achieve victory. The mindset was childish and the defence during the post-match conference was unconvincing. India managed to win the series even with the result of the stalemate final test ending as a lame duck. But what did we achieve on this tour? India couldn’t even go for the kill, looked hardly like the no.1 team contesting and still managed to put up a brave face during the press conference. Now, can we reason that we deserved to be no.1? The English tour was one of ravaging injuries. Imagine the situation when a team’s casualtylist comprises of their mainplaying XI. Casualty 1: Zaheer halted after his

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run-up and showed signs of discomfort, and it was found that he had just aggravated his hamstring injury. Out of the picture at a time when India needed his services the most. Casualty 2: Sehwag carried his shoulder injury leading to the third test devoid of any sufficient match-practice. His requirement was there but should it be at the cost of his health conditions for the subsequent matches? He put a shoddy performance in the two tests he played and at the end of it the two tests took a heavy toll on his shoulders and he too was ruled out without any further participation in the series. The other injuries were consequential and nothing-you can-do-about ones. But, can India call themselves No.1 when they can’t win without the help of their two main stars? The answer is a resounding “no”. Man-management is a nut-tocrack especially for sports bodies. The recent series of injuries highlights the inefficiency in the selection process.


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Health

THE TRUTH ABOUT METABOLISM

hen it comes to weight loss and dieting, one word that you hear often is “metabolism.” But what is metabolism, and how does it play a role in your weight loss goals and what is its value to you? Metabolism which literally means change or transformation is the amount of energy or calories your body burns to maintain vital functions. At every moment, be it sleeping, shopping or exercising, your body is constantly burning calories. It needs fuel just as a car needs fuel to power itself. Your metabolism is the regulator and manager of your body’s fuel. Your metabolism is affected by your body composition. In plain English, this means the amount of muscle you have compared to the amount of fat you have on your body. This comparison is important because your muscle tissue

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Think your diet affects your metabolism? You're right. But many more factors influence metabolic rate In general, the more muscle and less fat you have, the higher your metabolic rate. To know your awareness on metabolism start attempting the quiz below.

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burns or uses up more calories to maintain itself than fat does. That being, people who have a lot of muscle on them or mostly muscle on their frame, tend to have a higher metabolism than others who have more fat.Your metabolic rate is strongly influenced by your body composition. People with more muscle and less fat generally have a faster metabolic rate, while people with more fat and less muscle generally have a slower metabolic rate.

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Health

3

1

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a) T b) F Ans:F. Men tend to have a higher metabolic rate than women because women have higher levels of fat tissue.

Which of the following can boost your metabolic rate? a) A high fat diet b) A high carbohydrate Diet c) A high protein diet d) None of the above Ans: a - High Protein Diet Studies have shown that the body requires more energy to process a high protein diet which means that as your body digests high protein foods, your metabolic rate increases.

What is your 'metabolic rate'?

4

What is your metabolism? a) The rate at which you burn calories b) The rate at which you consume calories c) The processes your body uses to convert or use energy d) None of the above Ans: c - The processes your body uses to convert or use energy "Metabolism" refers to your body's systems for using or converting energy. This includes breathing, digestion, the building of muscle, and the storage of fat, circulation of blood -- anything that's part of your body's systems for converting energy into an activity you need to live. Metabolism involves two distinct types of processes: "anabolic" reactions, which involve building cellular structures and the storing of energy; and "catabolic" reactions, which involve breaking down molecules for energy.

Women usually have a highermetabolic rate than men

5

a)The rate at which you burn calories b)The rate at which you consume calories c)Half of the rate at which you burn calories d)None of the above Ans: a. The rate at which you burn calories Metabolism is often confused with metabolic rate, and the two terms are often used interchangeably. More accurately, "metabolic rate" is the speed of your metabolism, or the rate at which you burn calories. Strictly speaking, "metabolic rate" is the rate at which you burn calories while your body is at rest something that is more properly referred to as your "resting metabolic rate," or, measured a slightly different way, your "basal metabolic rate."

Which of the following can influence your metabolism? a)Lifestyle b) Genetics c)Age d)All of the above Ans: d)All of the above Your metabolism and metabolic rate are determined by a number of factors. Genes play an extremely important role; they're one reason why some people can remain thin no matter how much they eat, while others have a tougher time shedding pounds. Lifestyle particularly diet and exercise can also play an important role. No matter what sort of metabolism you were born with, or how well you have been maintaining it, it's likely to slow down as you grow older.


Your metabolism is controlled mainly by your a) Heart

b) Liver

c)Pancreas

d) Thyroid

Ans: d) Thyroid Your thyroid regulates your metabolism, producing hormones that influence almost every aspect of how your body performs: how fast or slow you burn calories, when or whether you build proteins or store energy as fat, and how your body responds to other hormones. Not surprisingly, disorders of the thyroid can cause problems for your metabolism. An underactive thyroid ("hypothyroidism") produces fewer-than-normal thyroid hormones, causing a slower metabolism, and, consequently often causes weight gain. An overactive thyroid ("hyperthyroidism"), on the other hand, can cause the metabolism to speed up, often resulting in weight loss

7

Strength training can help you lose weight by changing your metabolic rate a)True

b)False

Ans: a) True Strength training can indeed help you lose weight by changing your metabolic rate. But there’s disagreement about how this works. Some claim that by building muscle and trimming fat, strength training boosts your resting metabolic rate, helping you burn more calories just sitting still. But according to the American College of Sports Medicine, for most people, this won’t result in much weight loss. Instead, they say the main weight loss benefit is due to its effect on calories burned while doing strength training, or as a direct result, as your body burns calories building muscle.

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As you age, your metabolic rate a)Stabilizes

b)Speeds up

c)Slows down

d)None of the above

Ans: c)Slows down As you age, you tend to lose muscle. This results in a metabolic rate that begins declining as early as your twenties about 2% per decade.

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Eating fewer than 1200 calories per day makes your metabolic rate

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a)Speed up b)Slow down c)Stay the same d)None of the above Ans: b)Slow down Diets that are too severe can prove self-defeating, in part because of their effect on metabolic rate, and dangerous. Studies have shown that people who eat less than 1,200 calories per day are likely to wind up with a slower metabolic rate -- which, ironically, can make it more difficult to burn calories and lose weight. Even going too long between meals can slow metabolic rate. That’s why experts recommend eating a small healthy meal or snack every 2 to 3 hours. Plus, eating helps boost calorie burn as the body works to digest foods.

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Which of the following is considered to be a safe and effective metabolism "booster" a)Ephedra

b)L-carnitine

c)Bitter orange d)None of the above

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Ans: d)None of the above

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Many dietary supplements claim they can help you lose weight by boosting your metabolism. Buyer beware. Ephedra, a stimulant that can increase your blood pressure and heart rate, was banned by the FDA in 2004 because of mounting evidence of potentially fatal dangers. And other studies have found little evidence to support the claim that other metabolism booster supplements such as Lcarnitine or bitter orange can help you lose weight.Most doctors, nutritionists, and fitness trainers recommend that you boost your metabolism the old-fashioned way: through diet and exercise.

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Caffeine can boost your metabolic rate

a)True b)False Ans:a)True Caffeine is a stimulant -- and so by definition, it increases your metabolic rate. This is why it is often an ingredient in weight loss diet supplements. Studies have shown that one cup of American coffee can increase metabolism by about 3% to 4% for a short period of time.

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10

Spicy food can boost your metabolic rate a)True

Ans:a)True Some spicy foods can indeed raise your metabolic rate. In particular, hot peppers containing capsaicin are particularly stimulating to a metabolic process called thermogenesis, in which the body produces heat, thereby burning calories. But this effect is unlikely to be strong enough to help you lose weight. If that’s your goal, head to the gym not the spice rack.

Ways to Boost Your Metabolism The Elusive Metabolism Boost Boosting the metabolism is the holy grail of weight watchers everywhere, but how fast your body burns calories depends on several factors. Some people inherit a speedy metabolism. Men tend to burn more calories than women, even while resting. And for most people, metabolism slows steadily after age 40. Although you can't control your age, gender, or genetics, there are other ways to get a boost. Read on for 10 ways to rev up.

1. Build Muscle Our bodies constantly burn calories, even when we’re doing nothing. This resting metabolic rate is much higher in people with more muscle. Every pound of muscle uses about 6 calories a day just to sustain itself, while each pound of fat burns only 2 calories daily. That small difference can add up over time. In addition, after a bout of resistance training, muscles are activated all over your body, increasing your average daily metabolic rate.

b)False


a)True

b)False

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a)True

Ans: a)True Your body has to work hard to maintain its optimal natural temperature. In cold weather, your metabolism is forced to speed up to keep your body warm. And in hot weather, your metabolism has to speed up to keep you cool. It has been estimated that people living in tropical climates have a resting metabolic rate that is 5% to 20% higher than people living in more temperate regions.

Most of the calories that your body uses are burned during physical exertion b)False

Ans: b)False. You burn more calories just maintaining your body's vital processes than you do through physical exertion. In fact, 65% to 75% of the calories you burn in a day are burned by your metabolism in the process of maintaining your body's basic vital processes. Physical activity contributes up to 30% of your total daily calorie burn and is still one of the best ways to boost your metabolic rate.

2. Step Up Your Workout Aerobic exercise may not build big muscles, but it can rev up your metabolism in the hours after a workout. The key is to push yourself. High-intensity exercise delivers a bigger, longer increase in resting metabolic rate than low- or moderate-intensity workouts. To get the benefits, try a more intense class at the gym or include short bursts of jogging during your regular walk.

3. Fuel Up with Water

4. Have Your Drinks on the Rocks Ice-cold beverages prompt the body to burn more calories during digestion. Research suggests five or six glasses of water on the rocks can use up an extra 10 calories a day. That might not sound like much, but it adds up to a pound of weight loss per year without dieting. You can get the same benefit by drinking iced tea or coffee, as long as you forego the cream and sugar.

The body needs water to process calories. If you are even mildly dehydrated, your metabolism may slow down. In one study, adults who drank eight or more glasses of water a day burned more calories than those who drank four. To stay hydrated, drink a glass of water or other unsweetened beverage before every meal and snack. In addition, try munching on fresh fruits and vegetables, which are full of fluid, rather than pretzels or chips.

5. Sinless Snacking Eating more really can help you lose weight, eating more often, that is. When you eat large meals with many hours in between, you train your metabolism to slow down. Having a small meal or snack every 3 to 4 hours keeps your metabolism cranking, so you burn more calories over the course of a day. Several studies have also shown that people who snack regularly eat less at meal time.

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Your metabolic rate can be affected by your local climate

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6. Spice Up Your Meals

9. Recharge with Green Tea

Spicy foods contain chemical compounds that kick the metabolism into high gear. Eating a tablespoon of chopped red or green chili pepper can boost your metabolic rate. The effect is likely temporary, but if you eat spicy foods often, the benefits may add up. For a quick boost, spice up pasta dishes, chili, and stews with red-pepper flakes.

Drinking green tea or oolong tea offers the combined benefits of caffeine and catechins, substances shown to rev up the metabolism for a couple hours. Research suggests that drinking two to four cups of either tea may push the body to burn 17% more calories than normal for a short period of time.

7. Power Up with Protein The body burns many more calories digesting protein as it uses for fat or carbohydrates. Protein may require almost 25% more energy to digest compared to fat. Although you want to eat a balanced diet, replacing some carbs with lean, protein-rich foods can jump-start the metabolism at mealtime. Healthy sources of protein include lean beef, turkey, fish, white meat chicken, tofu, nuts, beans, eggs, and low-fat dairy products.

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8. Booster Shot: Black Coffee

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If you're a coffee drinker, you probably enjoy the increased energy and concentration that follows your morning ritual. Taken in moderation, one of coffee's benefits may be a short-term increase in your metabolic rate.

10. Avoid Crash Diets Crash diets those involving eating fewer than 1,000 calories a day are disastrous for anyone hoping to quicken their metabolism. Although these diets may help you drop pounds (at the expense of good nutrition), a high percentage of the loss comes from muscle. The lower your muscle mass, the slower your metabolism. The final result is a body that burns far fewer calories (and gains weight faster) than the one you had before the diet.

Best Bets The impact of different foods and drinks on the metabolism is small compared to what you need for sustained weight loss. Your best bet for creating a mean calorie-burning machine is to build muscle and stay active. The more you move during the day, the more calories you burn. And remember: working out in the morning has the benefit of revving up your metabolism for hours. (Source: WebMD)


Top 3 Maruti, Hyundai, Tata Posts Big Drop ALL OTHERS - TOYOTA, HONDA, VOLKSWAGEN, M&M, GM, FORD OUTPERFORM

Domestic car sales trended negative for the second consecutive month in August, with the country's top three carmakers - Maruti Suzuki, Hyundai and Tata Motors - reporting a big drop in numbers as costly loans and fuel kept buyers at bay. But Honda Siel Cars, Volkswagen, Toyota Kirloskar, General Motors, Ford and Mahindra & Mahindra gained, helped by price cuts and new launches. Maruti Suzuki on Thursday said it sold 77,086 units in the domestic market last month, down 16.8% from 92,674 units in the year-ago month. It was the carmaker's third consecutive monthly drop in sales, which was worsened by disruption in production due to labour unrest at its Manesar facility. Sales were down 25% in July. "The disruption in production at the Manesar plant in end-August adversely impacted the sales numbers during the month," the company, 54.2% owned by Japan's Suzuki Motors, said in a statement. Sales of 'People's Car' Nano plunged 85%, contributing to Tata Motors' 33.25% fall in passenger vehicle sales. The automaker sold 16,829 units in the domestic market, against 25,212 in the same month last year. Hyundai Motor India, too, said sales had slipped. The company sold 26,677 units in the month, down 6.7% from 28,601 in August last year. "The market continues to be tough and there are no signs of recovery in the immediate future. Rising fuel prices and interest rates

have caused this sluggish trend," said Arvind Saxena, director (marketing & sales) at Hyundai Motor India.

Most Auto Companies Post Smart Gains Most other manufacturers, however, posted smart gains. Honda Siel Cars India reported the highest-ever sales for August at 6,907 units, a 25% increase over the year-ago period. The company had sold 5,518 units in the corresponding month last year, the carmaker said in a statement. "This remarkable growth in sales is fuelled by the sales of Honda City. The company sold 5,819 units of Honda City in August, registering 35% growth from the 4,251 units sold in August 2010," the company said. Toyota Kirloskar Motor and General Motors India bettered sales with launch of new models. Toyota said sales jumped 83.8% to 11,693 units, driven by a robust demand for Innova and its latest products Etios and Liva. General Motors India reported a 14% increase at 9,050 units, led by a good response to its diesel version of Beat. The country's largest utility vehicles and tractor maker, Mahindra & Mahindra, said sales rose 31% to 35,756 units, compared with 27,275 in the yearago period. Volkswagen India said it sold 6,091 units during the month, up 72% over the same month last year. "Despite the current market conditions, we are pleased to be able to maintain our overall sales," Volkswagen India Director (sales) Neeraj Garg said. Ford India said overall sales grew 9% to 8,914 units mainly on demand for the all-new sedan Fiesta and compact car Figo.

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AUGUST CAR SALES:

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COVERSTORY

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INDIA WAKES UP TO CLUBBING

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SEASONAL MAGAZINE

nce upon a time clubs in India were all about aristocracy. No wonder in that because clubbing and partying in India have their roots in British Raj. Gentlemen's clubs were invented by the British. It was their outgoing nature and networking approach that had created the club culture, together with bigger phenomena like the ‘Empire on Which the Sun Never Sets’, and of course, what was to become the USA. One distinguishing nature of the British was that they partied as hard as they worked. Their adventurous men were fiercely independent and needed to be away from both their family and work, and be with like-minded gentlemen to play, party, drink, and debate. But in an India which is increasingly dominated by meritocracy of the young and the young-at-heart, clubbing is fast evolving as the new social and business networking phenomena, where achievers and their families meet like-minded crowd, to enrich each others lives through partying, sports, fitness, recreation, relaxation, discussions, dinners, drinks, debates, and common initiatives. At the forefront of this newage clubbing revolution now happening in India is MCA RC, the premium recreation centre promoted by Mumbai Cricket Association and Shirke Group. From its vantage location in Mumbai’s buzzing Bandra-Kurla Complex, watch-out for this luxury club as its elite members call the shots in many walks of life in the country’s economic capital.

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Clubbing for Corporate Czars Who Make the New India Happen the social clubbing scene is fast History and ne and a half decades of evolving in India. Evolution of economic liberalization These new corporate czars are Clubbing in is behind India, by the making a new India happen. fruits of which a new While aristocracy was the India generation of successful buzzword earlier, today it is entrepreneurs and high-performing but young business leaders are looking for the perfect place to unwind, party, and also contribute more to the public good. Driven by the need for networking and encouraged by the intellectual highs that happen when like-minded business leaders assemble for causes of public good as well as recreation,

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MCA RC Oriental Swing View

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meritocracy. Lineage has given way to innovative achievements of the young. This tectonic shift is even visible on the clubbing scene. While the traditional clubs are still content with offering games like cards, the new-age club is expected to deliver a full range of sports and fitness systems.

hy is it that when an affluent Indian thinks about a club, it is British Raj clubs that readily come into mind? The reason is nothing but the fact that India’s finest clubs were started during the British Raj, often by top-


British Raj’s so-called elite clubs in India are usually inherited inside aristocratic families, and when offered outside rarely, are highly coveted by some as status symbols. All of them were traditional gentlemen’s clubs, even though in the recent decades most have transformed themselves into family or social clubs. But despite their aristocratic clientele and old-world charms, it

is an undeniable fact that an ever increasing number of successful and affluent Indians have been totally disappointed with these old world clubs. The often cited reason is the difficulty in getting a membership, with some of them ostensibly running waitinglists of 10, 20, or 30 years, though in reality nobody nowadays is going to wait even 3 months.

MCA RC is One of the most Evolved, Healthy Clubs

There are examples galore across the country, but the most illustrative examples that readily come into anyone’s mind are the British Raj clubs surviving even today in the country’s metros, as well as many more that have closed down. There is no wonder that of among all people, clubs were invented by the British. It was their outgoing nature and networking approach that had, in fact, created bigger phenomena like the ‘Empire on Which the Sun Never Sets’, and of course, what was to become the United States of America. But one distinguishing nature of the British was that they partied as hard as they worked. Their adventurous men were fiercely independent and needed to be away from both their family and work, and be with like-minded gentlemen to play, drink, and debate. Like in Britain, membership to

Starting with a 14-acre prime property in the Bandra-Kurla Complex, it lives up to its indoor promise with a temperature control of 14 to 40 degrees. Though many kinds of sports and fitness facilities are provided, at the heart of the facility is the 38 metre by 28 metre Indoor Cricket Academy. Great views of matches playing at the adjacent MCA-BKC ground are possible from the club, the bar, and the card room through fulllength toughened glass walls. Other sports / fitness facilities include world-class badminton courts, a half-Olympic swimming pool, squash courts, billiards, a 3000 sq ft Technogym, and a fleet of treadmills. And for relaxing accommodation, there are fine rooms and even finer dining.

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ranking officials of the Raj.

t is in this backdrop that the relevance of a club like Mumbai Cricket Association’s Recreation Centre (MCA RC) in Bandra-Kurla Complex, assumes significance. True to MCA’s pre-independence founding in the 1930s, MCA RC is designed according to the ageold principles that defined the British Raj clubs, including the architecture and ambience. But MCA RC is also a refreshingly modern club, with no need for esoteric selections or elections. But that doesn’t mean that just about anybody who may afford it, is welcome. Member ships are open, but selectively given, with no prejudice, but keeping in mind the need to evolve a club of refined Mumbaikars.

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Shirke Group is at the forefront of Innovations in Hospitality

team that works like a cricketing side in peak form, has come to be such a hotspot for Mumbai’s business leaders to rub shoulders with its celebrity stars and sporting icons.

MCA Recreation Centre is a joint venture

Memberships at MCA RC are Now Open

between Mumbai Cricket Association and Shirke Group, a noted infrastructure player based in Pune. Shirke Infrastructure is a special purpose vehicle (SPV), launched to diversify Shirke Group’s interests into hospitality. MCA RC is the first in a series of fine sports academies and clubs that Shirke Group is planning across the country, and especially in other parts of Mumbai and other cities of Maharashtra like Pune. BG Shirke Construction Technology Private Limited (BGSCTPL), formerly known as BG Shirke & Company, was established in 1944 by its Founder Chairman, BG Shirke. BGSCTPL is a multi-disciplinary civil, mechanical and electrical engineering consortium having seven international technology tie-ups and over 12,000 employees.

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How MCA RC is Different From Other Clubs

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hen Mumbai Cricket Association and Shirke Group partnered to build a club, it had to be different. Here you don’t dine in a restaurant, but do an ‘Oriental Swing’ or take up the ‘Western Willow’. Here you don’t go to a coffee shop, but retire to the ‘Pavilion’. When you want to relax in a bar, you go for a ‘Spin’. The luxury suites guests get to relax in the night are 21 in number. And over here in MCA RC, businessmen forget they are doing business, as they do it in ‘Captains Knock’ or ‘Double Century’. Things being such, there is no wonder then that this unique cricket-themed luxury club promoted by MCA, built and managed by Shirke Group, and led by a top-level executive

peaking to Seasonal Magazine, Rajiv Wagh, Vice President (Marketing & Business Development), MCA RC, explained the different kinds of memberships on offer. Mumbai Cricket Association’s Recreation Centre at BandraKurla Complex offers two kinds of memberships - individual associateships and corporate associateships. Individual membership, as the name implies, is for a resident or non-resident individual and his immediate family, and is a lifetime membership. By immediate family, MCA RC means the member’s spouse and unmarried children below 21 years of age. Individual membership entitles all in the


immediate family to avail all the facilities of MCA RC, including, restaurants, bar, suites, gymnasium, squash courts, banquet hall, indoor badminton courts, billiards room, conference room, pavilion, tennis courts, jogging tracks, courtyard, swimming pool, card room etc. There are two restaurants to choose from - one serving oriental cuisine and the other western, as well as a coffee shop. In contrast to individual associateships, MCA RC’s corporate associateships are time-limited,

but still offers a generous period of 10 years. Indian and overseas corporates can apply Corporate members are eligible for nominating two senior executives to avail of MCA RC’s extensive facilities. However, in practice, the flexibility goes much over this, as they too can bring in their immediate family, much like individual memberships. Almost all facilities are common for both individual and corporate associateships. However, both don’t get automatic access to the indoor cricket academy, which is under the same premises, as it is more earmarked for professional teams in the sport. But all associates are welcome to watch the cricketers in action at the academy. MCA RC’s successful history shows that the membership is more preferred by corporates, one reason for which is the extensive business support facilities existing at the club. In order to avoid overcrowding, MCA RC provides five full-featured

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“MCA RC’s success is largely based on the club meeting and exceeding the partying, networking, and recreational standards expected by India’s new generation of young achievers in various walks of life. Shirke Group will remain in the forefront of such hospitality and clubbing initiatives, by launching more such clubs in the near future.” Rajiv Wagh, VP (Marketing & Business Development), MCA RC

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SEASONAL MAGAZINE

In an India which is increasingly dominated by meritocracy of the young and the young-at-heart, clubbing is fast evolving as the new social and business networking phenomena, where achievers and their families meet likeminded crowd, to enrich each others lives through partying, sports, fitness, recreation, relaxation, discussions, dinners, drinks, debates, and common initiatives.

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business centres. These different sized centres also provide for optimum usages according to the business need - be it a high profile client meeting, a seminar, power talks, or just a business lunch.

Other USPs of MCA RC nd of course, one pleasant side-effect is that the cricket-themed facilities would make pros forget that what they were transacting was hardcore business. The centres are named as Captains Knock, Winners, Glance, Opener, & Double Century. Lately, MCA RC has matured as a venue for grand parties, the main reason for which is the banquet hall. One distinct advantage over here is that the

green outdoors can also be leveraged for partying, apart from the exquisite interiors, that makes MCA RC the perfect setting for wedding receptions, engagement parties, product launches, conference dinners etc. The superb service support of MCA RC also comes into the picture, to make events here a grand success. MCA RC’s prime location in the Mumbai hotspot of BandraKurla Complex, the club’s spacious campus providing for ample parking, and its highly secure environment are other pluses playing for this premium club. The suites are plush and a notch above even star-hotels, and apart from expected luxuries like large LCD TVs, imported bath fittings etc, each suite has a well-stocked mini bar for the ultimate in private relaxation.


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"Just because you are 'high conflict' doesn't mean you aren't happy in your marriage."

Relationships

Marital Conflict May Not Ease Over Time But Researchers Say a 'High-Conflict' Marriage Isn't Always a Sign of an Unhappy Marriage

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f you argue a lot now with your spouse, chances are you'll still be arguing the same amount next year, and the next, and the next, new research shows. While common sense might suggest that people work out their differences over time, and that marital conflict declines, the new study found otherwise. "Marital conflict seemed fairly stable," says Claire Kamp Dush, PhD, professor of human development and family

science at Ohio State University. However, that news isn't all bad, she says. "Just because you are 'high conflict' doesn't mean you aren't happy in your marriage." People in high-conflict marriages have higher odds of divorce, she says. But not all of them split up. In her follow-up of nearly 1,000 couples, about 14% were classified as both "high conflict" and "high happiness." "We don't know if they enjoy the fighting or if they enjoy their marriages


despite the fighting," she tells.

marriages were classified as high, middle, or low conflict.

In the study, she looked at both conflict and happiness. She identified certain qualities that predicted happiness or satisfaction in the marriage.

The couples also answered questions about marital quality and happiness. The researchers then put the marriages in the categories of high, medium, or low happiness.

Marital Conflict and Marital Happiness Kamp Dush and her colleagues used data from the Marital Instability Over the Life Course Survey. It was conducted by Penn State University researchers. The study began in 1980, when the researchers interviewed 2,033 couples, age 55 and younger, by phone. Many of the same couples were interviewed five more times through 2000. Nearly 1,000 couples were followed for 20 years. The couples answered questions about how often they had disagreements with their spouses. The options were: never, rarely, sometimes, often, or very often. Depending on the answers, the

The findings suggest that a blending of old and new works well for today's marriages, says W. Bradford Wilcox, PhD, director of the National Marriage Project and associate professor of sociology at the University of Virginia. He reviewed the findings but wasn't involved in the research.

The couples answered other questions, such as their beliefs about marriage and about how they handled household chores and how they made decisions.

Why Some High-Conflict Couples Are Also Happy Over time, the conflict levels stayed about the same. The highconflict couples remained high conflict. They were in the minority, however. About 23% were in high-conflict marriages, Kamp Dush tells. However, ''14% of the sample were high conflict and high happiness," she says. She is not sure what to make of high-conflict, high-happiness

6 Marriage Mistakes Women Make Avoiding these 6 things may make for a better marriage.

For instance, if you don't speak up for what you want, your husband is flying blind -- and not likely to deliver. And the way you talk about your issues may be making matters worse. And then there's the bedroom. Getting married is easy. Being married can be trickier. Here is some expert advice to avoid or correct six common mistakes that

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ttention, married women: What you don't know about marriage may spell trouble.


couples. Why they stay together is somewhat of a mystery. "They might fight a lot, but like the makeup sex," she says. Most couples, over 60%, had medium conflict. The rest, nearly 17%, had low conflict. About 38% had high happiness levels, another 41% medium, and the other 21% low happiness levels. Certain qualities and beliefs did predict levels of conflict and satisfaction.

bout 38% had high happiness levels, another 41% medium, and the other 21% low happiness levels.

For instance, those in low-conflict marriages were more likely to say they shared decision-making with their spouses. Those who believe in lifelong marriage, as well as those who are more religious, were more likely to have high-happiness, lowconflict marriages. They were unlikely to divorce.

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Couples in which husbands shared housework chores were also more likely to be classified as high happiness, low conflict. They were less likely to divorce than other

couples. More than half the couples were in marriages with high or middle happiness levels and middle levels of conflict, she found.

disagreements in a specific time period. "It's totally subjective," she says. Factors such as a person's own perception play in and differ from person to person, she says.

As for what is ''high'' or ''low'' conflict, Kamp Dush says she cannot quantify it in terms of the number of arguments or

Advice for Couples

can cost a marriage, or at the least, weaken its foundations. Whether it's you or your spouse making these mistakes, taking positive action can make a big difference.

marriage.

1. Being too accommodating. Some wives are too willing to give up on what they want, says Susan Heitler, PhD, a Denverbased clinical psychologist and author of www.poweroftwo.org, a marriage skills-building course.

"Usually, they're afraid it could make a fight or some unpleasantness, or they just think somehow, on a subconscious level, in order to preserve the relationship, they have to diminish what they themselves want," she says. The sense of helplessness leads to anger that eventually boils over, she says.

or for yourself. He may like golfing on weekends while she may want him around for family time, for example. "If she spoke up, they might be able to work out a better arrangement," Heitler says. "Maybe they'd switch to a softball league in the summer where it would be a family event.''

Heitler calls it "appendage-itis," in which the wife is basically being an accessory to the husband, instead of being a full and equal partner in the

Her solution? Express your concerns rationally, whether about housework or parenting duties, or about not getting enough time with your husband

Some women tend to be "all about him" rather than all about themselves, as men tend to be, Heitler says.

The findings suggest that a blending of old and new works well for today's marriages, says W.

2. Not being clear about expectations. Couples that function the best in marriage have made their expectations clear from the outset about division of labor, parenthood, and money, says family and marriage therapist Eli Karam, PhD, an assistant professor of couples therapy at


Bradford Wilcox, PhD, director of the National Marriage Project and associate professor of sociology at the University of Virginia. He reviewed the findings but wasn't involved in the research. "Specifically, couples who are progressive in the sense that they share decisions and chores do better," he says. "But couples who oppose divorce and believe

strongly in lifelong marriage were happier and less likely to engage in conflict." In one sense, the findings are surprising because the literature on marital quality tends to emphasize negative or deficiency aspects of the marital relationships, says Elaine Wethington, PhD, professor of human development at Cornell University.

This new research, she says, is more balanced. With an emphasis on positive aspects as well, it is refreshing, she says. Wethington was not involved in the research. As for those high-conflict couples? "My advice would be to resolve what seem to be minor difficulties before they become larger ones," she says. "It is very important to learn how to resolve conflicts in positive ways that do not belittle the other person in a relationship." High-conflict partners need to seek out friends and social outlets, says Wilcox, as it can reduce stress. The study findings reflect other research that finds both commitment and constructive communication are important for good marital quality, says Ben Loew, a researcher at the Center for Marital and Family Studies at the University of Denver.

the University of Louisville. But many couples don't have those discussions and are operating on auto-pilot. "Lots of couples operate on what they assume in their head because they grew up that way, that if it works for them, it works for their partners," Karam says. Resentment can easily build if expectations differ or are dashed on the rocks of hard reality. For example, he says some women "think having a baby will change their husband or bring him closer. What we know about marriage satisfaction is that it takes a

massive dip when the first child is born. If they knew that before marriage ... it would help them navigate normal roadblocks and not freak out when it happens."

3. Underestimating the effect of tone of voice. No matter who's speaking, man or woman, tone of voice can be an issue if it's even tinged only slightly with negativity. If you have concerns, Heitler encourages "verbalizing them in a respectful way," rather than speaking in a frustrated, irritated voice. By all means, discuss what's

bothering you. But do it in a way that searches for solutions and alternatives, rather than venting in a way that puts a peaceful solution further out of reach.

4. Mismatched communication styles. If you feel you aren't being heard by your husband, you may want to revisit your communication style. Some women repeat their complaint or a concern a few times in an effort to get their husband's attention. Some men may call that nagging, but it may just be about having different communication styles. Karam calls it the "demand-

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“Lots of couples operate on what they assume in their head because they grew up that way, that if it works for them, it works for their partners,�


withdraw" dynamic: One person wants a conversation, but the other hasn't figured out how to respond or appears to have shut down, so the speaker presses further. "That's a vicious pattern," Karam says. If that happens in your relationship a lot, remember to pause to let your spouse absorb what you're saying and have "a chance to validate what they've heard," Karam says. It might be useful to take a hard look at what is fixed personality quirks, for example and what can be changed. Citing the work of marriage/couples researcher John Gottman, Karam says nearly 70% of marital problems are "perpetual," meaning that these are entrenched issues that drag on.

t might be useful to take a hard look at what is fixed personality quirks, for example and what can be changed. Citing the work of marriage/ couples researcher John Gottman, Karam says nearly 70% of marital problems are "perpetual," meaning that these are entrenched issues that drag on.

kids, work, and home that they forget to make the small gestures that go a long way to solidifying their marriage. "In healthy relationships, there are dollops of positivity, very frequently doled out," Heitler says. "They can be smiles, eye contact, hugs or touching, verbal comments like 'I agree with that' or 'good point' or even the word 'yes.' Listening, agreement, appreciation, affection those all send out positive energy that envelope both people in sunshine." Those gestures remind both

The challenge is to recognize what can't be corrected. It helps to "move toward acceptance," Karam says. "You're not going to change a cautious person into a risk-taker or an introvert into an extrovert.''

5. Not making sex a priority. Whether it's fatigue or some other reason, many women don't make enough time for sex. That's a serious mistake, say Heitler and Karam.

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"The reality is, what is best for everybody for them, their spouse is a healthy sex life," says Heitler. "It keeps the family a happy family. And what their kids need more than anything is parents who have a strong, positive bond.'' Karam says women need to build in time and by extension, desire to make love with their husbands. "They can't just drop everything and have sex with their husband. It's a product of spending alone

time together, building anticipation throughout the week," he says. Feeling sexy is a good way to start, and that means a woman must make herself a priority. "Generally, if you're a woman, you have to prioritize self-care. If you feel good about yourself, you're probably going to feel sexual," Karam says.

partners that they like each other, and friendship is at the heart of successful marriages, Karam says. Married people often "operate on out-of-date knowledge of self," he says, leading them away from true appreciation of their partners.

6. Forgetting to cherish their partner.

"It's a myth that a good marriage sustains itself," he says. "It's learning yourself, learning your partner. What you are at 24 is not what you are at 34.''

Some women get so focused on

(Source: Web MD)


Personal Finance AS A COMMON MAN, WE ALL HAVE HEARD PEOPLE ADVISING THAT WE SHOULD VOUCH FOR A HOME LOAN FROM A GOVERNMENT BANK INSTEAD OF A PRIVATE BANK. I PREFERRED IT TOO FOR THEIR LOW RATE OF INTEREST AND FLEXIBLE PRE-PAYMENT POLICIES.

wing a home is a dream come true for most of us and I am no different. This is my personal story that I want to share so that other people who are also in the same boat can benefit from my experience.

Well, I was the one who did not had ANY guarantor whatsoever. My mother is a housewife and my father is no more in this world. I am the only bread earner in my family and it was really difficult for me to convince anybody to give my guarantee.

Since, I belong to a middle class family, I needed a home loan to finace my newly booked underconstruction house. After paying the initial booking amount, I started searching for the best, and of course, cheapest home loan. Now, home loan's cost depends on various factors like processing fees, interest rate and other small expenses here and there. As a common man, we all have heard people advising that we should vouch for a home loan from a government bank instead of a private bank. I preferred it too for their low rate of

interest and flexible pre-payment policies. I applied for the home loan from one of the biggest public sector bank of India, SBI. Everything was fine as my builder's project was approved by SBI for loan and I was quite happy as I got what I wanted, that is, the loan from a public sector bank. But, the only thing which irritated me was the requirement of supporting your home loan application with a GUARANTOR. What is a guarantor? A guarantor is a person who can guarantee the repayment of loan amount in case something happens to you, that is, death or any other disability. This means that if you default in paying back the loan due to any reason whatsoever, the bank will

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How I got my home loan without a guarantor


T

his meant that even though I had all the papers in place and was eligible for loan, I could not get it just because I did not had a guarantor.

pass on the liability to the guarantor. In this case, the guarantor has to pay back the remaining amount of loan. An interesting point to note here is that almost all public sector banks have this as a mandatory requirement to give you home loan. Whereas private banks do NOT even ask for it. They are okay with your salary slips and other income proofs. Who can be a guarantor? Anybody who can vouch for you can be guarantor. Normally they ask for a person from your family, but your friend can also be your guarantor. What documents are required from a guarantor? A guarantor needs to submit his/ her income statements to prove that he/she is capable of paying back the loan amount in case the person in question defaults. Normally, the salary slips and other income proofs like PF, any existing property proofs (photocopies) are acceptable. What to do if you DON'T have a guarantor?

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Today, it is really difficult to find a person who would like to be your guarantor. Nobody wants to inject an unnecessary tension in his/her mind by signing legal papers for you. Who knows, you may default tomorrow and why should anybody pay in case you default? Ask yourself, would you sign a guarantee for anybody?

am the only bread earner in my family and it was really difficult for me to convince anybody to give my guarantee. This meant that even though I had all the papers in place and was eligible for loan, I could not get it just because I did not had a guarantor. I had lost all the hopes until I got to know of an insurance policy which could act like a guarantor for me! This policy is called loan insurance policy and is offered by almost all banks/insurance companies these days. What is home loan insurance policy? It is an insurance which is tied to your home loan EMI payments to safeguard bank's investment in giving you home loan. It is closely tied to your EMI payouts and the insurance company takes on the burden of repaying the loan to bank in case something happens to you.

These days, even parents ask their children to do it on their own as they also do not want to carry their child's loan burden.

The amount of premium is calcualted based on the tenure (total months) of your loan and the amount that is insured reduces with each EMI payment made by you.

Well, I was the one who did not had ANY guarantor whatsoever. My mother is a housewife and my father is no more in this world. I

The policy hence can act as a guarantor for you in case you don't have any. I preferred buying this policy instead of requesting people

to vouch for me. I feel that it is much better to depend on yourself than somebody else. Any other benefit of home loan insurance policy? The biggest crisis and pain that your family faces in case something happens to you is the loss of a beloved one. This pain is increased if the bank comes to your doorstep to ask for EMIs and the pain is even more when you get to know that the home which you bought is actually mortgaged with bank and hence can be sold by bank to recover the outstanding loan. The home loan insurance provides a big relief in this situation. The insurance company will pay back the outstanding loan to bank, bank will release the mortgage and will transfer the property in your family's name. Also, the premium amount that you pay is for the full tenure. In case you prepay the loan and close it before your actual tenure, home loan insurance company returns the unused premium back to you. But this is generally a small amount as per the terms and conditions of the policy. So, apart from being a guarantor, it helps you LIVE and reach heaven tension free.


Auto

TOP 6: Most affordable performance bikes in India So you've always wanted to buy a good bike but didn't know which to buy? Before we start, let us clarify a few things. First and foremost, the machines listed here are not 'performance' bikes by international standards. However, like most other things, bike

categories too take a different meaning in this part of the world.So, here gentlemen (and ladies), we have a list of the bikes which wouldn't disappoint you on your ride through the twisties over a weekend, while still not burning a hole though your pocket.

HH Karizma / ZMR

Bajaj introduced the Pulsar 220 with FI, but later took the system off in favour of a traditional carbureted version.

Pulsar 220 / 220 F Pulsar 220 took the bike enthusiasts' imagination by storm when it was first introduced. At the time of the launch, it was the most powerful and the most feature-rich machine in its segment. Boasting projector headlamp, front/rear discs and a mid-range torque to die for the bike won thousands of hearts. Bajaj introduced the Pulsar 220 with FI, but later took the system off in favour of a traditional carbureted version. The price was brought down too, making the bike more accessible to its fans. Later, the streetfighter version of the bike, with bikini fairing and tank scoops was also introduced with an even lower pricing. The company has recently introduced a visual upgrade for the bike, featuring a two tone colour scheme and new graphics. A terrific VFM package in the 220 segment that delivers on every count!

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Karizma may have been a tad too long in the tooth, but it still is one of the most revered performance machines in India. A supremely refined 223cc air-cooled single, good for 17.6bhp of peak power and 18.35Nm of torque propels this trusty steed. A premium offering from the top bikemaker in India, the Karizma has been serving cross country tourers and city commuters with alike enviable reliability for years now. Apart from the usual Karizma R, the company introduced a new sportier ZMR variant a little more than a year ago. Fully faired, and embellished with additional bells and whistles such as PGM-FI, full fairing and a digital console, the ZMR offered a lot more exclusivity to the standard package. The Karizma may not be the outright winner in terms of performance, but it's a great balance of comfortable seating, reliable handling, well-engineered mechanicals and pleasing visuals. A practical buy for those looking at a good all-round package even today!


While the 150 and 160 versions too were very popular, the company needed an even bigger machine to take the fight to the big boys in the league.

TVS Apache RTR 180

TVS Apache RTR 180 Yamaha R15 The next step forward in performance biking after the success of the Fiero for TVS, the Hosur based bike maker was the Apache.

Yamaha, ever since it introduced the RD350 and the RX series in India has been identified with performance and technology among its Indian fans.

While the 150 and 160 versions too were very popular, the company needed an even bigger machine to take the fight to the big boys in the league.

After trying and failing with the idea of establishing itself as a volumes player with products like the Crux, Alba and Libero, the company finally delivered what was expected from it in the form on the R15.

The Apache 180 with its rev-happy engine, great responsiveness and sharp handling along with stuff like rear sets and clip-ons gave biking enthusiasts a tool which embodied all the virtues of a great track bike. Thanks to its race bred DNA, even with its relatively lower cubic capacity, the Apache 180 RTR is a match for the bigger Pulsar 220 around the racetrack.

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Always known as an innovator, TVS have also managed to develop an ABS for two-wheeler with technical assistance from Continental. The company is currently offering the newly developed ABS system on the flagship Apache RTR 180. The technology, although on the expensive side currently, is decidedly effective in low-traction situations, making the RTR 180 ABS, one of the most sure footed bikes around!

The YZF-R15 pushed the technology envelope among mainstream bikes to a different level and enjoyed accolades from buyers and critics alike for incorporating modern tech such as liquid-cooling, delta-Box frame and forged pistons. Even with its relatively small engine and modest peak power, the bike, by virtue of its light weight and superior technology was quite a handful even for bigger machines such as the Pulsar 220 and the HH Karizma. More powerful bikes have emerged on the scene since, toppling the once king of affordable performance from its throne, but as a standalone machine, the R15 still delights the rider. A replacement version is being rumored and should be here in the coming months

Power: 17.3 bhp @ 8500 rpm Torque: 15.5 Nm @ 6500 rpm Price: Rs 64,000 (ex-sr)

Yamaha R15 Power: 17PS @ 8,500 rpm Torque: 15 Nm @ 7,500 rpm Price: Rs 97500 (ex-sr)

Honda CBR 250R Power: 25 bhp@ 8500rpm Torque: 23.9 Nm at 7000 rpm Price: Rs 1.43 lakh(ex-sr) (Non ABS)

Ninja 250R Power: 32.5 Bhp @ 11000 rpm Torque: 22 Nm @ 8200 rpm Price: Rs 2.7 lakh (ex-sr)


This fully-faired machine which draws its design heavily from bigger VFR1200F not only redefines performance in its price segment, but also offers great value.

Honda CBR 250R

Ninja 250R

Biking enthusiasts in this country craved for a proper 250 machine for a long time before Honda answered their prayers in the form of the CBR250R. This fully-faired machine which draws its design heavily from bigger VFR1200F not only redefines performance in its price segment, but also offers great value. Although overshadowed slightly by the twin engine Ninja in terms of outright performance, pound for pound, the Honda wins hands down.

While not exactly an 'affordable' bike per se, the Ninja 250 still is the most affordable performance twin engine machine one could lay his hands on in India.

There isn't quite a match for this machine this side of Rs 2 lakh. The CBR250R, with its full fairing, wide tyres and sporty stance is also takes you to the closes to bigger 1000 and 600cc machines in terms of visuals. As expected, Honda got an overwhelming response to the bike upon its launch. The deliveries went into waiting, and the situation persists to date. The CBR250R is available with or without ABS, with the non-ABS version retailing for an incredible RS 1.43 lakh ex-showroom.!

Also, the Ninja 250R is the real exponent of a proper 250cc machine's performance. Refined, revvy and incredibly easy to pilot right from the outset, the Ninja 250 is the perfect track tool to start honing your skills.

With an output of 32bhp from its twin cylinder engine, the Ninja 250, for years now has been known as the best 250 across the world. Of late, with the popularity of such bikes rising in developing countries, global bikemakers are turning their focus once again to this segment. Kawasaki in the meantime enjoys its position while the rest of the pack plays catch-up football. Without a trace of doubt the Ninja 250 makes for the best 250cc machine in the country, if you have the money to pay for its high asking price that is.

Also, the Ninja 250R is the real exponent of a proper 250cc machine's performance.


Politics

Mayawati's budget: Rs 50 crore for personal comfort! ttar Pradesh Chief Minister Mayawati's state supplementary budget has an allocation of more than Rs 50 crore (Rs 500 million), essentially for personal security and comfort. This came to light on the floor of the Uttar Pradesh Assembly where a supplementary budget of Rs 10,879 crore (Rs 108.79 billion) was tabled during the course of the on-going monsoon session in Lucknow on Tuesday. Barely four months ago, the UP Assembly had passed the state's annual budget of Rs 1.65 lakh crore (Rs 1.65 trillion) for the financial year 2011-2012. According to the provisions, a total sum of Rs 26 crore (Rs 260 million) has been allocated towards enhancement of Mayawati's personal security.

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The amount has been earmarked for purchase of 20 bullet-proof Ambassador cars and 10 jammer vehicles. Significantly, another dose of Rs 23 crore (Rs 230 million) is sought to be injected into a bungalow built for her post-chief ministerial days at a whopping Rs

In keeping with UP government's tradition of allotment of a place of residence to all former chief ministers, the bungalow was allotted to Mayawati during her first stint as chief minister.

54 crore (Rs 540 million). In keeping with UP government's tradition of allotment of a place of residence to all former chief ministers, the bungalow was allotted to Mayawati during her first stint as chief minister. After witnessing several major renovations during her two successive tenures, the bungalow at Lucknow's posh Mall Avenue was eventually pulled down during the current stint when she also chose to acquire an adjoining government office building and have a sprawling 100,000 square feet plot for erecting a grand, new

chateau type residence for her post-chief ministerial days. While the construction work had been going on there for the past three years, her frequent visits to the place in the recent past apparently raised her requirements for which a fresh allocation of Rs 23 crore had now been made in the State's supplementary budget. Interestingly, one of her dream projects -- the Rs 120-crore (Rs 1.20 billion) Manyavar Kanshi Ram Green Eco Park -- is also all set to receive an additional grant of Rs 41 crore (Rs 410 million).


Showbiz

Do You Know These Star Siblings? Here is an introduction to the lesser-known siblings of our Bollywood stars. Take a look:

Salman Khan and Alvira Khan

Priyanka Chopra and Siddharth Priyanka Chopra just can't help but feel proud of his kid brother, who's seven years younger than her. The actress flew all the way to Switzerland to be at Siddharth's graduation ceremony. The actress also tweeted about her trip and was visibly in great spirits in her brother's company.

Now we all know that Salman Khan, for all his brashness, is a real softie at heart. He loves kids and dotes on his family. What would it be like, we imagine, to be his sister? Alvira and Arpita Khan know the answer to that. Sisters to the three brawny Khans, including Arbaaz and Sohail, it must be quite a blessed life, considering the siblings seem to just adore each other.

Shah Rukh and Shehnaz Khan Shah Rukh is just as famously and fiercely protective of his family. He's often been heard saying in interviews that his family is his biggest strength. His elder and only sister Shehnaz, who doesn't venture out much of their house.

Akshay Kumar and Alka Akshay Kumar knows how to keep his girls happy. Be it wifey Twinkle Khanna or sister Alka, who is often pampered and showered with gifts by the actor.

Hrithik Roshan and Sunaina The hunky Hrithik Roshan is quite the doting brother. His elder sister Sunaina may not be as camera-loving as him but the pair are quite close to each other.


Aamir Khan and Nuzhat Mr Perfectionist lets his actions speak louder than words. And we know because we've seen him launch his dear sister Nuzhat's son, Imran Khan, in the movies with the fervour of a father. It speaks great lengths about the bond that the two of them share.

Sonakshi Sinha and Luv-Kush

Ameesha Patel and Ashmit Patel

Dabangg heroine Sonakshi Sinha has twin brothers for company at home. Luv did not enjoy his sister's success when his debut film Sadiyaan released in 2010. Twin Kush has not faced the camera yet.

While both of them forayed in films together, Ameesha has had a slightly better career graph than her younger brother. This duo has had very public disputes and weren't on talking terms for quite a while but have made up now and seem to be closer than ever before.

Eesha Koppikhar and Aarush Khallas girl Eesha Koppikhar has a younger brother and the bonhomie between the duo is quite evident in public.

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Rani Mukerji and Raja Rani loves her brother and his family to death. In the early days of her career, we saw her wear her brother's creations a lot. And now she just can't get enough of her neice, we hear.


Business

India's

Billionaire

Kids

Akash, Isha and Anant Ambani Children of Mukesh Ambani, India's richest man, Akash, Isha and Anant Ambani are among the youngest billionaire heirs in India. Reliance chairman Mukesh Ambani is the second richest Indian. Mukesh Ambani's net worth in 2011: Rs 1,53,822.45 crore (Rs. 1,538.224 billion).

They are India's richest children. Heirs to India's most wealthy companies, they are in an enviable position. Some of them have already taken charge of their business empires. Meet India's billionaire kids...

Aditya and Vanisha Mittal Lakshmi Mittal's son Aditya Mittal is the chief financial officer, (CFO) of the world's largest steel firm Arcelor Mittal.Vanisha Mittal has been a Director at LNM Holdings (the holding company for the Mittal group), Arcelor Mittal, Mittal Steel, Temirtau JSC Since 2004. Lakhsmi Mittal's net worth: $31.1 billion.

Nisaba Godrej and Tanya Dubash

Ananyashree, Aryaman Vikram and Advaitesha Birla Birla's three children will inherit the entire wealth of the Birla empire. Kumar Mangalam Birla's net worth in 2011: Rs 53,505.12 crore (Rs. 535.051 billion).

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Adi Godrej's daughters, Nisaba Godrej and Tanya Dubash play a key role in the company. Nisaba is the president, Human Capital and Innovation for Godrej Industries and associate companies. Tanya Dubash is on the boards of several Godrej Group companies. Adi Godrej's net worth in 2011: Rs 16,535.94 crore (Rs 165.359 billion).


Roshni Nadar

Siddhartha Mallya Heir to the Mallya group of companies, Siddhartha Mallya was educated at Wellington College in the UK and Queen Mary's College in the University of London. Vijay Mallya's net worth in 2011: Rs 15,075.22 crore (Rs 150.752 billion).

Roshni Nadar, Shiv Nadar's daughter is the executive director and the CEO of HCL Corporation. Shiv Nadar's net worth in 2011: Rs 22,244.84 crore (Rs. 222.448 billion).

Rishad Premji Rishad Premji, son of Wipro chairman Azim Premji joined his father, in 2007, after working for a while with Bain & Co and General Electric. Azim Premji's net worth in 2011: Rs 93,148.56 crore (Rs 931.485 billion).

Shashwat Goenka Shashwat Goenka is the son of Sanjiv Goenka, vice chairman of RPG enterprises. Sanjiv Goenka's net worth: $1.4 billion.

Jai Anmol and Jai Anshul Ambani Anil Ambani's sons, Anmol and Anshul will take over the ADAG enterprise. Anil Ambani's net worth in 2011: Rs 61,663.12 crore (Rs 616.631 billion).

Eiesha, Kavin and Shravin Mittal

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Pia Singh Kushal Pal Singh's daughter, Pia Singh serves as the managing director of DT Cinemas, and DLF Retail Developers. She has worked for the risk undertaking department of GE Capital and the investment division of General Electric, US. She serves as whole-time director of DLF Limited. Kushal Pal Singh's net worth in 2011: Rs 35,665.94 crore (Rs. 356.659 billion).

Eiesha, Kavin and Shravin Mittal are heirs of the telecom giant, Bharti Airtel. Sunil Mittal's net worth in 2011: Rs 92,714.49 crore (Rs 927.144 billion).

Lakshmi Venu Lakshmi Venu, daughter of TVS Motor's managing director Venu Srinivasan, is the vice president (global business development and strategy) for Sundaram Clayton Ltd, the holding company of TVS Motors. Lakshmi Venu has married Infosys co-founder and chief mentor N R Narayana Murthy's son, Rohan Murthy.


page 57


In-Focus

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How LIC’s Investment Policy Helps India

page 58

It is no secret that one of the strengths of Indian equity market is the role played by Domestic Institutional Investors. And it is no secret that leading the pack of these angelsin-disguise are the state-owned enterprises, especially Life Insurance Corporation of India. Like in 2001, and like in 2008, LIC is back in action now in late 2011, when American & European crises again force Indian markets into a tailspin. But this time over, there is a difference - the life insurance major’s investment policy has become much more refined, which means not every company or its investors are going to benefit, but rather prudential companies and their discerning investors. Powering all these, is of course, LIC’s innovation in the life insurance business, which continues to be sharply differentiated from the competition, which is best exemplified by the recent Jeevan Arogya offering.


oreign Institutional Investors (FIIs) are often projected as the driving force behind Indian equity market. Though it is partly true, the FII investment policy has largely been just ‘make hay while the sun shines’. At the first hint of trouble they rush out of India. It has not helped either that ‘trouble’ nowadays is not home-grown but imported, be it the US credit downgrade or the EU debt crisis.

LIC’s investment policy of buying low differs from the FII policy of accumulation and quick exits. All major FIIs are known to heavily rely

D.K. Mehrotra, (Current-in-Charge & CHAIRMAN, LIC )

Thomas Mathew T. Managing Director, LIC

What Powers LIC’s Performance & Investments LIC has set for itself a formidable target of Rs. 54,000 crore as first premium income this fiscal. Though the first half witnessed negative growth for all insurers including LIC, this market leader is confident of correcting the course in the second half. Powering it mainly will be a new Market Plus product to be launched soon, that worked similar wonders during the previous fiscal. If things go as per this plan, the target of Rs. 54,000 crore will help LIC reach another internal target of Rs. 2 lakh crore as this year’s accretions to their fund.

Living up to the superior brand loyalty that LIC enjoys, the insurance giant recently declared higher bonuses in seven plans, and higher loyalty additions in another seven plans. The bonuses range from Rs. 1000 to Rs. 6000, and this welcome move for investors has come after two years now, to commemorate LIC’s 55 th anniversary that was celebrated recently. LIC’s formidable agent army of 15 lakh agents is being strengthened further, with the crucial South

T. S. Vijayan, Managing Director, LIC

A.K. Dasgupta, Managing Director, LIC

Central Zone all set to hire another 1 lakh agents this year. Additional opportunities for LIC agents continue to arise, with the latest being Pension Funds Regulatory Development Authority’s (PFRDA) intention to rope in LIC’s 15 lakh agents for selling the New Pension Scheme (NPS). However, changing in tune with the times, LIC is also gearing up to launch its first ever online product that will enable this state-owned insurance company to offer cheaper rates for term life insurance, as there is no marketing costs due to agents. LIC’s investor friendliness is also evident from their intention to offer up to 6% annual return on Pension Plus, even while private insurers have locked horns with the insurance

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In sharp contrast, the leading Domestic Institutional Investor (DII), LIC of India, has always come to the rescue of the Indian market while it is in doldrums. Though legend continues that the higher-ups controlling financial governance of the country sort of directs LIC to chip in, the truth is that LIC’s timely support is more often than not a case of value investing. It is no rocket science that stocks are best bought low.

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equity exposure. In other words, LIC had much more leeway to support equity if the need had arisen. Then comes a flexibility that goes even beyond that - LIC’s existing investment portfolio or assets under management is an unbelievable Rs. 12 lakh crore.

on derivatives and hedging, even while they follow a policy of continuous buying at higher and higher levels that forces bubbles in even heavily traded blue-chips and mid-caps. The flipside of this strategy is that continuous accumulation at higher levels forces these FIIs to dump their holdings at the slightest hint of a turnaround, thereby catching numerous retail investors off-guard. LIC which is also quite active and smart on the sell side, however, follows a policy of letting good companies run up to their full potential valuation.

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Though LIC is not alone in providing the much needed support in times of crises, the sheer size of LIC’s investment target ensures that it is this insurance giant that plays the pivotal role. For example, in 2010-11, LIC had made equity

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regulator over the issue of providing at least 4.5% assured returns. LIC follows an investment policy of infusing 10-15% of their net investable fund for equities, and during this fiscal, the equity investments are expected to match or surpass last year’s Rs. 43,000 crore. Going beyond equities, LIC is also investing for the long term, especially in infrastructure projects. While LIC has already invested 12% of their investable surplus into infra projects, they have a mandate of 15% which is not met due to lack of qualified projects. But this is now set to change with a couple of infra-specific initiatives from the insurance major. The most notable among these initiatives is participation in the mammoth Delhi Mumbai Industrial Corridor (DMIC). Government has indicated that it wants LIC and HUDCO to take up the stakes and roles hitherto played by private sector players in DMIC Development Corporation

In fact, it was domestic institutional buying worth more than Rs. 4100 crore, led by LIC, that limited the recent fall in Indian equities post the S&P downgrade of US debt. investments of Rs. 43,000 crore, which is not easily matched by any other institutional investor including the State Bank of India (SBI) Group. And that is not all. LIC in fact had limited its equity exposure to Rs. 43,000 crore. Its total investments for the year including in debt instruments stood at Rs. 1,96,000 crore which is around five times its

LIC continues to be synonymous with life insurance as it is the market leader having 78% share of Indian insurance market in terms of number of policies. With 28 crore individual polices, besides covering more than 9 crore people under group insurance and superannuation schemes and over 3 crore families under social security schemes, LIC is even the largest insurance company in the world in terms of number of customers. LIC's services are also available to NRIs from international offices in UK, Singapore, Bahrain, Fiji, Mauritius, Nepal, Sri Lanka, & Kenya. (DMICDC). LIC is likely to take over significant stakes from IL&FS and IDFC if this plan gets through. LIC is also set to launch a Rs. 500

Forget equity markets, LIC’s support has become crucial for many state governments, the best example being debt-ridden Karnataka’s reliance on LIC. Together with NABARD, LIC has extended over Rs. 22,400 crore to Karnataka LIC’s support had always come in handy whether it was full-blown crises like 9/11 and Lehman, or seasonal or annual sell-offs by FIIs. crore Venture Capital fund for the infra sector through its listed subsidiary LIC Housing Finance. The insurance leader is also planning to sponsor an Infrastructural Debt Fund (IDF) which is a relatively new structure floated by the Government to fasttrack investments into the crucial infra sectors. LIC continues to be synonymous with life insurance as it is the market leader having 78% share of Indian insurance market in terms of number of policies. With 28 crore individual polices, besides covering more than 9 crore people under group insurance and superannuation schemes and over 3 crore families under social security schemes, LIC is even the largest insurance company in the world in terms of number of customers. LIC’s services are also available to NRIs from international offices in UK, Singapore, Bahrain, Fiji, Mauritius, Nepal, Sri Lanka, & Kenya.


The crux of the new policy is that LIC will only invest in companies with superior corporate governance. But what if that means exclusion of whole sectors? LIC doesn’t give a damn, to put it mildly. In fact, even before the new policy officially came into existence, LIC has been completely avoiding real estate stocks. This two-year old refusal will continue under the new policy. But what is remarkable is that new sectors with bad corporate governance are being identified under the new policy. For example, post the 2G spectrum allocation scam, LIC has stopped investing in almost all telecom companies, except for some interest in Bharti Airtel which has been largely unaffected by the scam, even while continuing its good fundamental performance. But even with scrips like Bharti, LIC believes in a policy of continuous monitoring, as this investment giant is more familiar with instances of corporate misgovernance than good governance among listed companies. But that doesn’t mean LIC is keen to punish individual stocks, as has been the case with many international brokerages that spare no effort to beat down a stock once it falls out of favour with them, with tools like downgrades, and even manipulations like dumping borrowed shares to prove a point. LIC has always been there to support companies in genuine crises like in the case of Satyam Computer Services. Though like most investors LIC too was cheated by the former promoters, LIC saw value in supporting the company and its scrip through the troubled times, by its

In sharp contrast to FIIs, the leading Domestic Institutional Investor (DII), LIC of India, has always come to the rescue of the Indian market while it is in doldrums. Though LIC is not alone in providing the much needed support in times of crises, the sheer size of LIC’s investment target ensures that it is this insurance giant that plays the pivotal role. For example, in 2010-11, LIC had made equity investments of Rs. 43,000 crore. supportive buying which increased LIC’s stake in Mahindra Satyam to 3.18% now. LIC which was once very supportive of good IPOs, especially from the public sector, has decided to go easy. Citing expensive IPO valuations, LIC has shunned many recent hyped-up IPOs, and intends to continue this policy. The second hallmark of LIC’s new investment policy is that the decision-making process in making investments has become more democratic now, that eliminates chances for error or even fraud. Decision making has moved on from the office of the Managing Director in charge of investments to a reconstituted Investment Panel. The earlier panel looked into only very large investments, and was made of LIC’s three MDs and a Government of India nominee. The new panel retains all the old members, and in addition has two of LIC’s Executive Directors from the Investment Department. And to top it all, the best feature of the new panel is that all six members have the individual power to veto any investment, be it small or big. Though LIC officials deny this, one reason for refining and fine-tuning the investment process seems to be an enquiry faced by some officials

regarding losses in its investment business. While investigators point to a Rs. 14,000 crore loss, topranking LIC officials explain it as only a notional loss that is unavoidable in large-scale investing, and reversible to a good extent. In any case, there is no second opinion on whether the new policy would be of help to companies with good governance and their discerning retail investors. So, which all sectors are this investment behemoth betting on now? LIC is generally shy to deliver investment advice, unlike international ‘experts’, but has recently divulged that it is betting on oil and cement sector stocks. Other clues come from LIC’s actual actions. For example, taking a contrarian view on the metals space, LIC has recently bought 9.4 lakh shares in beaten down Tata Steel from the open market, increasing its stake to over 14%. Meanwhile, powering such grand visions in large-scale investment is the core performance of LIC’s newer retail products. LIC proved that it knows the pulse of the Indian citizen when it launched Jeevan Arogya, that is proving to be a thumping success in the market. Even while private health insurers were turning stingier and stingier than ever, Jeevan Arogya provides coverage for most surgeries - read over 300 surgeries! - and that too not just for the insured and his spouse/children, but for his/her parents, and even for parents-in-law. While families are definitely going nuclear, LIC knows that during health crises there is no difference between the nuclear family and the extended family, at least in India. It is that same kind of specialist knowledge on India that makes LIC bet on India for the long-term and even in crises, unlike opportunistic FIIs.

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But this time around, LIC of India has created a new refined investment policy that may not help all those who consider stock market as another venue for gambling, including companies and investors.

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Banking

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Union Bank of India Prepared for a Positive Turnaround

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M V Nair, CMD

Union Bank has several pluses going for it like its superior RoE, the continuity in top management, its effective re-branding, its significant investments in bettering customer services, its new initiatives like Union Chetna, its upcoming overseas branches & UK subsidiary, and its impressive overseas fund raising plans to fuel growth. At the same time, the scrip stands heavily corrected, near its 52-Week Low, which is a good 43% below its yearto-date October high. Is there a fortune to be made in Union Bank?


The bank’s most recent financial results, that is of Q1, is a mixedbag with Union Bank coming up a winner on many fronts. Year-onyear revenue growth is strong at over 31%, while sequentially it grew by a modest 3.5%. Both core interest income and other income have grown year-on-year. Certainly not a bad result on revenue, especially if one takes the adverse sectoral situation. Coming to non-interest expenses, the bank could contain it well sequentially, much more than the sequential revenue growth percentage, and even the year-onyear growth in expenses was only commensurate with the revenue jump. Again, not a bad job on the non-interest expense front.

due to the prevailing market trend, as well as fears about further rate tightening by RBI, paving the way for more stress on assets. Union Bank had provided a guidance during the end of FY’11 that the bank is going through a NPA hardening cycle, and that the respite would come towards the end of FY’12. True to this, the gross and net NPAs rose to 2.57% and 1.32%. Post this result, Chairman MV Nair has expressed confidence that NPA limiting initiatives are working as expected, and by the end of this fiscal he is confident of limiting

Union Bank has been, historically speaking, a PSB that has always delivered superior Return on Equity, with the FY’11 RoE being an impressive 16.31%, which is an above-average return among all PSBs. The latest quarterly Return on Assets (RoA) is also reasonable by PSB standards at 0.86%.

Where the bank’s performance had a setback was the interest expenses, which shot up both year-on-year as well as sequentially. But this really is a function of the high interest regime that is prevailing, that is squeezing the margins of all banks.

Valuation wise, the bank looks cheap for a buy as it is trading at a TTM P/E of 8 and at just 1.4 times its FY’11 book. Technically speaking also, Union Bank looks ripe for a positive turnaround, as its correction percentage from yearly high now stands in the early 40s, which is considered one of the safest entry points. It should be noted that 16 out of 23 remaining PSBs have fared much worse than Union Bank in the current market fall. But the real question is whether Union Bank is attractive beyond just raw financials and technicals? That makes us look at the bankspecific initiatives that can aid in growth, and the picture we see is rosier than the other two factors. Among the initiatives, what strikes an observer most is Union Bank’s attitude towards the recently published Damodaran Committee Report on Customer Service, which was according to an RBI directive. While many banks were worried that the Committee’s recommendations would hurt the bottom-line, Union Bank wholeheartedly welcomed the move.

Secondly, Union Bank had a higher tax outgo during this quarter amounting to Rs. 273 crore, if not for which, at least the sequential net profit would have posted a decent growth. This outgo, of course, is not a routine thing and there is nothing to be disappointed in this too. From the October 26th 2010’s 52Week High of Rs. 426.80, Union Bank has corrected by nearly 43% now, which clearly comes across as a fundamentally oversold position, given its recent financials. Union Bank’s fall comes across as more

call on Union Bank now, on just the financials, the scrip has definitely turned attractive for buys. Union Bank has been, historically speaking, a PSB that has always delivered superior Return on Equity, with the FY’11 RoE being an impressive 16.31%, which is an above-average return among all PSBs. The latest quarterly Return on Assets (RoA) is also reasonable by PSB standards at 0.86%.

Gross NPAs to less than 2%. In fact, the bank seems to have the NPA situation finely calibrated, with the peak expected to happen in Q2, and thereafter improving substantially. If one were to take a fundamental

The rationale for Union Bank’s approval for the wide-ranging reforms that can revolutionize banking standards in the country was two-fold. Firstly, the bank believes that even if it brings some short-term pains, on the long-run the bank would only benefit as

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In a month when many public sector bank scrips hit yearly bottoms, Union Bank of India’s scrip too has touched 52-Week Lows. This is sure to throw open at least two debates about whether there is something fundamentally weak in the bank’s operations, and whether there is a safe investment opportunity in this PSB.

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better customer service would not only attract more customers, but more high quality customers, which has been the core strength of newgeneration private sector banks. For example, better customer service is likely to lead to better percentages of the low-cost Current Accounts / Savings Accounts (CASA), which has emerged as one of the performance differentiators in the current interest-tightening regime. Secondly, even before the Damodaran Committee recommendations were published, Union Bank had entrusted renowned US headquartered consultancy firm McKinsey & Co to come up with a plan to thoroughly overall its customer service offerings, so as to be the most customer-friendly bank in the country, even above private players. The most recent example of the bank’s customer friendly measures is Union Chetna, which is an information window for the customers as well as employees. Union Bank has been actively pursuing the goal of financial literacy and awareness as an important demand-side driver of financial deepening and inclusive growth. Union Chetna is an extension of such efforts.

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Under this initiative, informative contents will be displayed on a digital screen. The service will be available to customers during the business hours wherein information on various products and services of the bank will be displayed along with other useful financial information. The same window will be the knowledge gateway for the staff after business hours.

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Already, the bank’s 103 Village Knowledge Centres provide useful information to the rural people. Customised version of Union Chetna will be available in these centres. As a pilot, Union Chetna

M V Nair, Chairman and Managing Director, inaugurating the new branch in Mangalore.

will be available now in 50 branches and 10 Village Knowledge Centers. The information on Union Chetna will be managed through a remote server and contents may be displayed in 18 regional languages and customized for specific locations. Growth prospects also look quite good at the PSB. In anticipation of the growth ahead, Union Bank is gearing up to raise capital. While it expects Tier-I Capital to the tune of Rs. 400 crore from the Government, it is also raising TierII Capital up to a maximum limit of Rs. 2250 crore by way of overseas bonds of medium-term duration. For managing the overseas bond, Union has tied up with the likes of Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, Standard Chartered, and HSBC. It should be recalled that Union Bank has been quite successful in its overseas bonds with a Rs. 900 crore bond issue in January 2011 and a Rs. 1800 crore issue in last August. The January issue was special in that it was denominated in Swiss Francs, and was the first Indian issue in that currency for the last 24 years. Another initiative worth mentioning is Union Bank’s plans to

strengthen its overseas presence. Taking a cue from peer Bank of Baroda, which gets substantial revenue from overseas, Union Bank will open three more branches - one each in Australia, Belgium, & Dubai - and will be starting a subsidiary in United Kingdom. Union Bank’s social commitment as a public sector bank is also riding high, with it consistently meeting targets such as priority sector lending and agrarian loans. And unlike the case with SBI and some other PSBs, Union Bank is not worried over loan defaults from this segment, which can be attributed to more prudential lending. Last but not least is the leadership continuity factor in Union Bank that will play to its advantage. MV Nair, one of Indian banking’s most reputed leaders has had enough time to plot a comprehensive rebranding and turnaround, and with his recent reappointment for a further two years at Union, he is highly likely to lead the bank to never-before glory and a substantial re-rating of the stock. All in all, the current correction give or take another 5-10% appears a good opportunity to invest in Union Bank of India, which can fetch investors excellent returns in the long run, that is 1-3 years.


Auto

Second Largest European Carmaker Enters India

French auto maker PSA Peugeot-Citroen said Thursday it plans to invest about 650 million euros to build a manufacturing facility at Sanand, the rapidly developing automotive cluster in the Indian state of Gujarat. automotive group by volume after Germany's Volkswagen AG.

The move fits in with PeugeotCitroen's goal of reducing its dependence on the mature markets of Europe. The company has said it is aiming to have half of its vehicle sales outside Europe by 2015, compared to 38% at present, by ramping up production capacity in China, Russia and Latin America, and now India.

The company said the site will generate 5,000 new jobs, creating further economic and employment opportunities through an extensive supplier park adjacent to the site, which will provide the company with necessary parts and services.

The new complex will comprise a vehicle assembly plant with a paint shop. It will have an initial capacity of 170,000 vehicles annually with the possibility for later expansion. It will also manufacture engines and gearboxes using the latest power train technologies, said PeugeotCitroen, Europe's second-largest

The first locally produced Peugeot car will roll off the assembly line

The new complex will comprise a vehicle assembly plant with a paint shop. It will have an initial capacity of 170,000 vehicles annually with the possibility for later expansion.

in 2014, it said. The plant will initially start producing a Peugeot-brand compact sedan, targeting at the most dynamic part of the Indian market. Later, the assembly plant will produce the Peugeot 508, a slightly larger upmarket sedan that Peugeot launched earlier this year, a spokesman said. For now, there are no plans to launch models bearing the badge of the Citroen brand. The state of Gujarat has been successful in trying to entice foreign automotive groups to set up industrial operations at Sanand, where India's Tata Motors Ltd. already builds the world's cheapest car, the Nano. Ford Motor Co. announced in July that it is investing $1 billion to set up a vehicle assembly and engine manufacturing plant at Sanand, its second facility in India. Peugeot currently has no presence in India, one of the world's most promising automobile markets. Before settling on Sanand, located 40 kilometers from the state capital Ahmedabad, the French company had also considered setting up its new Indian plant in Tamil Nadu or Andhra Pradesh.

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Peugeot-Citroen is second only to Volkswagen in Europe, and is ahead of Renault which entered India earlier.

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In-Focus

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What Makes Manappuram Outperform Peers?

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August was not an easy month for stocks. NBFC stocks were especially hit during the first half, owing to the high interest regime as well as the impending RBI directives. But soon after the RBI committee report came - which was a mixed bag for the sector - one NBFC swiftly outpaced all others in share price performance. Manappuram’s two-week price performance stands at 20.54%, much ahead of most comparable peers like Shriram Transport at 10.70%, Bajaj FinServ at 10.61%, M&M Financial at 7.64%, L&T Finance at 7.61%, Cholamandalam at 7.15%, Shriram City at 3.16%, and Muthoot Finance at 2.27%. It was not an easy thing gaining that much - twice that of heavyweights like Shriram & Bajaj and ten times faster than Muthoot - that too in a market that continues to be difficult. So, what makes this NBFC tick a lot more robustly than the competition, and what makes investors to make a beeline for this counter?

Manappuram Finance, one of Indian stock market’s most wealth creating mid-cap companies for retail investors, was recently back with a public issue of a different kind. Manappuram’s Rs. 400 crore non convertible debenture issue offered an industry-leading 12% interest for 13 months, and was a powerful solution for all those who were disappointed with the current equity markets, but who would prefer something better than bank fixed deposits. The risk profile of this AA- rated bond was also quite good, due to Manappuram’s robust business model as well as healthy corporate governance standards, that has always ensured participation by


It was the maiden public issue of Non Convertible Debentures (NCD) by the leading NBFC in the loan-against-gold segment. The issue opened on 18 th of August, was quickly oversu bscribed, and Manappuram closed the NCD offer on August 26 th much before the closing date of September 5 th . The over ssubscription was to the tune of Rs. 70 crore, and even though the company had an oversubscription option for up to Rs. 350 crore, it chose to close the issue, probably due to adverse conditions in the secondary market.

The issue carried an attractive interest rate of 12% for 400 days or approximately 13 months tenure. For a 24 month tenure the rate was slightly more attractive, at 12.20%. The rate was attractive for investors as it was around 1.51.6% higher than the highest paying fixed deposits of similar tenure from the country’s banks. Manappuram’s NCD was also more lucrative than another comparable NCD, that of Shriram City Union, which offered 11.611.85%, that too for a 3-year tenure. Muthoot Finance Ltd’s NCD offered 12.25%, but the tenure was longer at 3 & 5 years. For 2 years,

Nandakumar’s stewardship of Manappuram in the capital markets is legendary. A recent example was his buying of Manappuram stock for over Rs. 4 crore in a single day, when the markets were really beaten down, and every expert predicting further falls. This was not the first time this Founder & Chairman had chipped in, thereby sending strong signals to the investment community regarding his willingness to bet for the long-term in Manappuram, even amidst difficult times.

VP Nandakumar, Executive Chairman

Muthoot offered 12% against Manappuram’s 12.20%. Manappuram was able to provide better rates for a shorter duration, as the tenure of the NCD reflects the shorter tenure of this NBFC’s retail gold loans. Manappuram Finance is headed by its Executive Chairman VP Nandakumar who has been a professional banker, before taking over the family business in gold loans which now has a trackrecord of over 50 years. Nandakumar is acknowledged in the Indian stock market as a significant wealth creator who took Manappuram’s Rs. 10 valued stock to Rs. 3560 last year, when its scrip enjoyed peak valuation. A Rs. 1 lakh investment in Manappuram in 1995 had surged to Rs. 3.56 crore during the FY’10. Nandakumar’s stewardship of Manappuram in the capital markets is legendary. A recent example was his buying of Manappuram stock for over Rs. 4 crore in a single day, when the markets were really beaten down, and every expert predicting further falls. This was not the first time this Founder & Chairman had chipped in, thereby sending strong signals to the investment community regarding his willingness to bet for the longterm in Manappuram, even amidst difficult times. Manappuram is a 13000 people strong, professionally managed company, with its Managing Director, I Unnikrishnan, coming from outside the family, and is a qualified and experienced Chartered Accountant, as well as considered as an authority in the NBFC business. Manappuram has been the first gold loan company to get listed in India’s stock market, and is

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some of the world’s most discerning funds like Sequoia, CLSA, Copthall, Wellington, Hudson, and many more.

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noted for its better corporate governance standards and transparency than most of its peer group companies. Owing to this, Manappuram Finance has almost always enjoyed excellent patronage from foreign institutional investors, with FII participation in Manappuram’s equity being 30.62% now. FIIs holding more than 1% of Manappuram include heavy weights like CLSA, Sloane Robinson, Swiss Finance, Wellington Management, Feder ated Kaufmann, Columbia Acorn, Copthall, Hudson Equity etc. Manappuram also has a track-record of generating more than 5X returns for celebrity PE fund Sequoia Capital

I Unnikrishnan, MD

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of Google / Apple fame.

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The present investment climate in the country was clearly favouring finance companies raising cash through NCDs as against other instruments like QIPs or private placements. The recent regulatory change that prevents NBFCs from availing priority sector funds from banks, as well as the higher interest regime had made relying only on banks an unattractive option for players like Manappuram. Manappuram which has successful

QIPs to its credit, however didn’t opt for the same as the current valuations were not conducive to raise further equity without effecting significant dilution. Retail investors on the other hand have been struggling to make money from equities for the past one year. They were looking for something with better returns than fixed deposits, but with much better risk profiles. One of the largest NBFCs in the country, Shriram Transport Finance, had recently concluded its Rs. 1000 crore NCD issue with an overwhelming response from retail investors, with the issue witnessing 5 times oversubscri ption. Manappuram’s NCD also followed suit for several reasons. Manappuram’s core business of loansagainst-gold continues to witness robust growth. During the first quarter of this financial year, net profit rose by 133.6% year-on-year, while operating income recorded a jump of nearly 165%. The jump in loan book or assetsu n d e r- m a n a g e m e n t (AUM) was even more impressive - soaring to Rs. 8951 crore from Rs 3310 crore, a jump of more than 170%. The margins and other metrics also continue to be healthy. The interest spread is quite high at 16%. Net NPAs is quite low at 0.30%. And the loan book is highly secured as 99.2% of the book is made up of loans against gold. Manappuram’s Capital Adequacy Ratio is also extremely robust at 21.8%. Reflecting these strengths, Manappuram NCD has a rating of AA- from CARE.

The company’s gold loans are relatively risk-free as their average ticket-size is just Rs. 33,500, and is mainly taken by individuals and micro & small businesses by pledging personal gold ornaments. The company doesn’t offer loans against bullion, sovereign etc, nor the latest trend of loans against Gold Exchange Traded Funds (ETFs), as the company believes that those assets carry significantly higher risks. Even the maximum loan-to-value (LTV) offered by Manappuram will have a 15% cushioning to offset any short-term downtrend in gold prices. For example, to avail Rs. 33,500 as loan from Manappuram, the customer pledges Rs. 38,525 worth of gold excluding making charges. Secondly, the pledging of personal jewellery ensures that customers, especially female members of the household, are more keen to get back their own jewellery rather than retain the loan amount, even if gold prices fall. Growth prospects at Manappuram are also promising. The current NCD for Rs. 400 crore is part of a wider NCD plan for Rs. 2000 crore. The remaining funds would be mopped up through two subsequent issues, but which may carry lower rates, if the interest regime has already peaked in the country. Even the Rs. 2000 crore fund raising is part of a bigger plan to raise Rs. 6000 crores by different means, which will see the loan book soaring to Rs. 15,000 crore by the end of this financial year. The strategy is clearly to diversify away from bank loans as the prime source of funds, which currently accounts for 50% of the funds. The company is also now in the process of raising Rs. 620 crore by way of private placement.


Investments

Which is the Best Investment Option in Gold

E-Gold or Gold ETFs? E-GOLD, says Anjani Sinha, Managing Director, National Spot Exchange The biggest advantage that investing in e-gold has over gold ETF is that it involves no management costs or other recurring expenses. So the product is a lot more cost-effective for people who have a long investment horizon. The only charges involved are a one-time transaction fee of 2-3 paisa per gram and a brokerage fee of 0.2-0.3%. Both these charges are also levied in case of gold ETFs, but are much higher. E-gold can be converted into physical gold for quantities as small as 8 gm, while gold ETFs offer the option of physical delivery but only for a denomination of over a kilogram. Accumulating such a huge amount

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42% was the one-year (August 2010-August 2011) return delivered by e-gold compared with 40% for gold ETFs. While the marginal difference in returns can be attributed to the costeffectiveness of e-gold, both these avenues provide ease of investing by allowing people to hold gold in the demat form. However, each product has its pros and cons—while gold ETF is a more tax-efficient means of investing, e-gold offers the option of physical delivery. This is perhaps the reason experts remain divided on which route makes for better investment, finds out ET. Based on their opinion and depending on your individual needs, find out whether you should go for e-gold or gold ETF. Here are the pros and cons of each from four subject experts:

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of gold is not feasible for small investors. Besides, the delivery centres of the National Spot Exchange are located in 15 cities, while ETFs have only one delivery centre in Mumbai. E-gold can also be directly converted into jewellery through select, reputed jewellers that conform with the purity and transparency guidelines. The investor only has to pay for the making charges. The National Spot Exchange aims to bring all branded jewellers under its umbrella of empanelled jewellers within a year. The liquidity in egold is also increasing phenomenally, with the current average daily turnover being Rs 200-250 crore compared with Rs 15-20 crore in case of gold ETFs. Liquidity is of utmost importance for a retail investor as it makes buying and selling more efficient by reducing the impact cost (which is the bid-ask spread). The impact cost for e-gold is only 10-15 paise, as opposed to Rs 4-5 in gold ETFs.

E-GOLD,

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says Naveen Mathur, Associate Director, Commodities, Angel Broking

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E-gold wins hands down against gold ETF. In India, the rural community and the middle-to lowincome group have a tendency to flock to gold. For the typical Indian investor, e-gold is more suitable as it provides the option of delivering the yellow metal and, hence, bridges the gap between using it for investment and the traditional, auspicious reasons for buying it. Unlike in gold ETFs, where prices are measured in terms of the net asset value, it is simple to understand e-gold because of the transparency in pricing. A small investor, who wants to accumulate gold for his daughter's wedding or

Anjani Sinha, Managing Director, National Spot Exchange

E-gold can be converted into physical gold for quantities as small as 8 gm, while gold ETFs offer the option of physical delivery but only for a denomination of over a kilogram.

ones provided by physical gold. While e-gold directly tracks the domestic, physical gold prices, gold ETF only mirrors them. Certain gold ETFs have the flexibility to invest up to 10% of the total net assets in money market instruments and this can lead to tracking error. Some ETF companies also invest in gold futures and in a basket of gold mining companies. The earnings of a gold mining company may not reflect the price movement in gold, thereby reducing the impact of the price rise. As a result, the returns from ETFs may not be similar to those from investing in physical gold. The market-timing is another crucial factor that an investor should consider. One can trade in gold ETFs only till 3.30 p.m., while e-gold can be traded till 11.30 p.m., providing the investors greater flexibility and global cues while trading in gold domestically.

GOLD ETF, a festival, can easily do so through planned, monthly or weekly investment in e-gold. In this manner, he can also guard his investment against price volatility. E-gold has also been providing better returns than gold ETFs. The primary reason for the differential is that in the case of investing in gold ETFs, there is a range of charges, such as management and advisory fees, marketing and distribution expenses, custodian charges and other operational expenses. The expense ratio of gold ETFs is around 1%. Apart from the charges, tracking error also brings down the returns of gold ETF's a little bit. Tracking error is a measure of how closely a portfolio follows the index against which it is benchmarked. A gold investor always aims to achieve returns in line with the

says Mukesh Gupta, Director, Wealthcare Securities The idea behind both the options is the same—both e-gold and gold ETFs aim at relieving investors of


GOLD ETF

Naveen Mathur, Associate Director, Commodities, Angel Broking

A small investor, who wants to accumulate gold for his daughter's wedding or a festival, can easily do so through planned, monthly or weekly investment in e-gold. wealth tax, whereas gold ETFs don't. Besides, the investors have to go through the inconvenience of opening a separate demat account to be able to trade in e-gold, while one doesn't have to do so for gold ETFs as the demat account for shares can be used for the ETFs as well. Hence, administration is not at all cumbersome. However, if an investor is primarily interested in getting physical delivery of gold then, e-gold is the ideal mode of investing. However, investors also need to keep in mind that for physical delivery, they will have to pay a charge and VAT at the rate of 1% each.

for now, says Charul Shah, Director, Greshma Wealth Advisors At present, investing in gold though ETFs would be more prudent for small investors. While it's true that investing in e-gold is relatively cost-effective, it's also a new product. It was launched only in March 2010 and, hence, should be given more time to evolve before retail investors venture into it. Gold ETFs, on the other hand, have been around since 2007, are traded on reputed stock exchanges and are backed by good fund houses. The average daily volumes are significantly higher in the egold segment, but this could also be due to the authorised participation and contribution of high net worth individuals as the commodity markets have been seeing encouraging turnover growth for some time compared with that in the equity markets. It is also true that being linked to physical, domestic gold prices, egold mitigates the currency risk better than gold ETFs. According to the norms of the Securities and Exchange Board of India, the actual benchmark for gold ETFs is not the domestic price of physical gold but the London Bullion Market Association's (LBMA) gold price. This price is in terms of the US dollars and has to be expressed in domestic currency, thereby allowing exchange rate fluctuations to adversely impact the gold ETF NAVs. However, not being linked to LBMA's guidelines also has its drawbacks. The purity of e-gold is not approved by LBMA and there is no standard benchmark in domestic gold prices. E-gold will definitely overtake gold ETFs as an investment route over the next two-three years. Till then, stick to gold ETFs.

SEASONAL MAGAZINE

the worry of storage and purity, making gold investment more efficient and convenient. However, gold ETFs make for a more sensible investing option compared with egold because of the different tax treatment meted out to the returns from the two. While the short-term capital gains tax for both the products is charged according to the marginal rate (tax slabs), the tenure for the application of this rate differs. An investor has to hold egold for over three years for it to be considered a long-term capital gain, while gold ETFs need to be held for only over a year. Also, the long-term capital gains tax for gold ETFs is levied at 10%, while the tax is 20% for e-gold. E-gold also invites

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Gadgets

Affordable Tablets in India under Rs 20,000 If you are searching for low cost tablets in India, you must be aware of the fact that most of these products come along with some truly great features, such as GPS, Wi-Fi and 3G. Therefore, the low price tags do not relate to low quality. On the contrary, these tablets are able to support different applications, just as any other types of tablets. Here, then, is a list of nine most affordable tablets that are available in India these days.

MSI WindPad 100A

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This is a very slim device that comes equipped with 1280 x 800 IPS. It provides different ports, including 3.5mm audio jack, HDMI and USB. It accommodates a 2MP front camera and a 5MP rear camera. This device is powered by the Tegra 2 processor that comes together with 2GB RAM. There are two options available, the 16GB and 32 GB tablets. The price should be around Rs 17,000.

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Reliance 3G Tab This tablet provides a 7-inch dis-

play, being powered by Android 2.3. It also comes with micro SD storage space which can support up to 32GB. The tablet has two cameras - front and rear - of 2MP. It sports various features, including video streaming, GPS, voice calling, mobile TV and others. Reliance has priced it at Rs 12,999.

Zinglife ZL101 This 10-inch tablet is proposed by Zinglife, being powered by the operating system, Android 2.2. It comes with a processor of 1GHz, 512 MB of RAM and RJ45 broadband port. The price is estimated at Rs 12,300.

Beetel Magiq Developed by Beetel Teletech, this low cost tablet brings in the Android 2.2 operating system and 8GB of memory, which is extendable to 16 GB. The tablet also provides a long battery life, front and back cameras of 2MP, Wi-Fi and 3G functions. The price of this tablet is Rs 8,999.

Spice MI-720 This tablet promises to become a very popular choice of many Indian consumers. And this is mainly because it intends to replace the well-known Mi-700, which runs on the operating system, Android 2.2 Froyo. The Spice Mi-720 runs on Android 2.3 and features an updated processor of 800MHz. Other specifications include 512 MB RAM and ROM, VGA front and rear cameras of 3MP, Bluetooth, WiFi, SIM and SD card slots. It may cost around Rs 17,000 to Rs 20,000.

Wespro Digital ePad This is another great alternative that comes along with different features. These features include Android 1.9 operating system, a processor of 400MHz, 128MB of RAM, expandable memory up to 32GB, WiFi, MP3, MPEG, WMA DIVX and XVID file formats. This tablet is for sale at its official site for Rs 5,999.


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