Corporate Terminology

Corporate Terminology Prepared By : Ranjan Dwivedi

March 1, 2009

Ranjan Dwivedi

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19 Nov 2008 • • •

Japan in recession after 7 Years CITI may axe 50K Jobs to cut expenses Package of Incentives to bail out Exporters hit by slow down • Government to hasten spending on Power House to give fiscal stimulus • Cut in Excise duty to boost demand • GM ,Ford Motors and Chrysler asking for bailout to avoid bankruptcy • Sectors having good job Prospectus are Education , Healthcare and FMCG • MBA Education should encourage integrated thinking and be more customer-centric as opposed to resource-centric. Every stream has value and meaning. • Brand matters • Personal branding: It is a clear , deep and profound understanding of who you are and what you stand for. March 1, 2009 Ranjan Dwivedi • It is great to be busy but it is more critical to be productive.

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20 Nov 2008 • • • • • • • • • • • • • • • •

IT Big 5 to hire80K this year Rupee closes at record low of 50.02 per dollar Economic meltdown is hurting NGO’s dependent on Corporate funding Maruti Suzuki rolls out A-Star Centre to boost investment in infrastructure 5% import duty slapped on steel to save domestic steel industries Banks will be able to lend more to NBFCs that are providing funs to Infrastructure sector RBI may fund NHB to revive housing finance companies RBI may consider fresh liquidity steps to propel growth Scope of monetary action to further ease liquidity by cutting interest rate suggest CII NRIs reported remittance in September is $513 million, hiest since Dec2006 Building Infrastructure is not Keynes’ General Theory Crude oil $54 per barrel RIL and ESSAR to retail fuel again Metro man Sreedharan known for completing targets before time Confedration of Indian Industries and World Economic forum jointly organized INDIA ECONOMIC SUMMIT 2008

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21 Nov 2008 • • • • • • • • • • • • • • • •

Assignment (Taxila –Misc) The Finance ministry is considering a further relaxation in overseas borrowing norms , particularly for infrastructure companies ONGC has offered bouquet of perks and facilities to it’s 30000 odd employees. For Offshoring, firms will prefer India says Infosys’s MD & CEO Mr S Gopalakrishnan Indian companies to find favor with overseas lenders . Indian companies borrowed $1 Billion in the month of October. A marathon meeting of WTO will begin in Geneva next week Slowdown hits mining sector, FIMI(Federation of Indian Mineral Industries) wants export duty removal India and Tajikistan ink double taxation avoidance pact. Govt okays hike for PSU staff Sliding fuel prices pull inflation down to 8.9% Ranbaxy exploring Health Insurance Business Investors come home to Gold There has been an improvement in liquidity in Mutual Fund Do we need Fair Value Accounting? Rupee closes at 50.18 Small cos turn to Currency Exchanges to hedge risk

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24 Nov 2008 • •

India Clinch ODI series Jet Airways proposes 5-10% cut for employees withdrawing 75k PM • Legal Eagles Soar as market soar • Rs 50K-cr push for core sector like roads, airports,ports and power plant. • FDI is allowed in invest in Investment Cos soon • Govt is considering an array of sop such as lower excise duty for Auto Industries • Mr Subbarao to meet bank heads to assess the market liquidity • Tata motors to shut down Jamesdpur plant for 5 Days due to slump in sales order • Forex reserve dip $5Bn in a week as RBI sells Dollor • Indis Forex Kitty has srunk by $45 Bn in last seven weeks. • India Inc to take the current slowdown as an opportunity to take the reins of global leadership • India story is viable as ever • Give man a fish and you feed for a day, teach him how to fish and you feed for the life. • Psu oil Cos may be forced to price cuts March 1, 2009 Ranjan Dwivedi 5 • Commenwealth games has raised hopes of young professional for

25 Nov 2008 • US bail out CITI with $20 bn cash injection • MBA student kidnap teen to recover losses in stocks and real Estate • RBI tightens norms on pleging indian property on NBFC’s foreign branch oversea Debt • Mindtree eyes SAP services co. Seal Consulting • Coke steps up focus on small towns,rural mkts. • Hindustan Zinc has won CSR Excellance award • Shikha Sharma awarded businesswoman of the year ( MD ICICI) • MBA colleges should check not only numerical,analytical and linguistic skills but also social and ethical skills. • CRR cushion helps banks invest over 7k Cr in CPs, MFs bonds and stock • Market is good for longRanjan term investor March 1, 2009 Dwivedi 6 • IT banking on china for biz.

10Dec2008 • •

Bad Hire a major Issue in the companies Worst Spending Slump Since 1942 Extends ‘Scary’ U.S. Recession Household spending will drop 1 percent in 2009, • Domestic passenger-car sales fell 19.38% in November to 83,059 units, from 1,03,031 units in the same month last year. • Major cement manufacturers, including ACC, Ambuja Cements and Shree Cement, on Tuesday announced price cuts by up to Rs 7 per bag in response to the government's move to reduce CENVAT by 4%. • Indian Railways on Monday hiked the freight rates for cement, coal and coke by up to 8% per tonne. The Railways move would increase the input cost of housing, power and steel sectors that have been identified • HDFC Bank Ltd, said on Monday it was cutting its prime lending rate by 50 basis points to 16 percent following rate cuts by the Reserve Bank of India (RBI) on the weekend. • Central Crime Station (CCS) sleuths arrested a former software professional who procured two SIM cards by fraudulent means to harass a lady colleague and a childhood friend. • In future a mobile phone will replace the laptop market, and drive PC makers out of business. Already laptop sales have started falling all over the world, indicating the supremacy of the smart phone. Large PC makers like HP and Dell will either change their business models or go out of business • Rupee on Wednesday appreciated by 48 paise against the US currency in early trade on1,dollar equity markets. March 2009 selling by banks amid surging RanjanAsian Dwivedi 7 At the Interbank Foreign Exchange (Forex) market, the domestic currency traded at

Contd 10 Dec 2008 •

Swraj Paul first Asian deputy speaker in Britain's House of Lords 10 Dec 2008, 1154 hrs IST, PTI • The RBI had stated that "loans granted by banks to housing finance companies (HFCs) for on-lending to individuals for purchase/construction of dwelling units may be classified under priority sector, provided the housing loans granted by HFCs does not exceed Rs 20 lakh per dwelling unit per family • The monthly net outflows from SS schemes, especially postal deposits and certificates like National Savings Certificates and Kisan Vikas Patra, touched a 3-yr high of Rs 2,937 crore in Oct as investors took to bank deposits, where interest rates have been firming up from July • To counter the effects of the global financial slowdown and its impact on various sectors of the Indian economy, the Central Government on Sunday announced an Rs.20, 000 crore stimulus package that includes major across the board tax cuts to boost demand. A total amount of Rs.300, March 1, 2009 000 crore is to be spent Ranjan overDwivedi the remaining four months on 8

11 Dec 2008 • • • • • • • • • • • • • •

30700Cr as Fiscal Stimulus to prime sectors like housing, export,infrastructure and textiles is just 0.6 % of GDP Govt to keep close watch on working of rating agencies Telecom companies keen to bid for 3G (third generation)radio frequencies but facing shortage of fund can bank upon govt for fund The Central Bank has libeberallized it’s ECB policy to allow purchase of 3G spectrum licence in India as one of the permitted use. The forex inflow from tourist industry has gone down in November and is in negative territory for the first time in last five years Domestic Life insurer have infused RS 3000Cr of extra capital to bolster business and maintain ability to pay claims. Min GMAT score for Iim’s is 722/800 much higher than 710 for harvard and 712 for Stanford for PGPX Future Mobile will be more of a computer says Anssi Vanloki VP Nokia Industry cancels 15% orders worth 3750 Cr for new ships Economy to grow 7.5% to 8% this fiscal. World economy to grow at about 2.3%. Will fed cut rate on Dec 16? Rates of Central BanK in all the countries?? Private Sector has 80% investment in our economy Psu Bank to step up Retail Lending BPO sector not in danger of job losses

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ADD 11 Dec 2008 • Credit Rating Companies in India • Mahindra-Renault tie up is under a cloud after Logan Sales fail to pick up • Wipro is asking some of its new IT recruits to join its BPO arm • Top Indian 5 Deals of M& A in the year 2008? Eg Fem Care Pharma and Dabur India =$40.70M. • India’s financial advisory Ranking top 5 eg CITI • Mumbai attacks have brought the nation face-to-face with wide loopholes in the basic governance structure? • Parle’s Frootie a food beverage in competition with -----Real, ---------Tropicana,-----Priyagold.----------Minute Maid and mazza • Indian farmers looses about 1200 cr to fake pesticide. Go in detail March 1, 2009 10 • Carbon credit Trading Ranjan Dwivedi

12 Dec 2008 • • • •

Gehlot is CM Rajasthan 2nd Stimulas package soon Pak bans Jammat-ud-Dawa PM inaugrates 1st 3G network by receiving Vedio call • India gets a coastal command • PM says Sorry to the nation • RBI extends 9000Cr credit line to NHB and EXIM Bank • US House passes auto rescue plan of $14Billion • Duty Cut,Samsung,LG slash prices March 1, 2009 Ranjan Dwivedi in Nov. about • Indian M&A pick up stem

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Add 12Dec2008 • Nasscom says that Scandinavia are calling IT professionals • China’s milk scandal highlights an endemic problem,that is the linkage between regulators and the firms • RBI has sold dollors which has squeezed liquidity • Unfettered capitalism is dead but crony capitalism is alive and well • CNN news coverage clip of Reasons for financial crises • Understanding CSR • IMF has approved loans for Hungry($15.7BN) and Ukraine($16.5BN) but not Iceland ($2.1BN) • TATA is creating a mall management entity through it’s retail venture Trent • Transparency International corruption index ranking indicate India is becoming a bit more corrupt.(least March 1, 2009 Ranjan Dwivedi 12 corrupted to max corrupted)

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Today’s World Wide Corporate Developments

PM inaugrates 1st 3G network by receiving Vedio call Nasscom says that Scandinavia are calling IT professionals India's industrial growth has shrunk for the first time in more than a decade as the country witnesses the fallout of the global credit crunch John Maynard Keynes introduced the concept of the paradox of thrift The concept means that every body decides to save, consumer spending will fall, causing total demand to slump, along with total income , which will ultimately mean people will have less to save Mr Sunil Alagh MD Britannia Industries says this is particularly true in India where domestic consumption makes up 60% of GDP, because when the consumer starts spending the company starts investing FMCG prices set for correction with inflation finally cooling off. IHCL to unveil new brand identity Viventa.It will be Viventa by T-----Tata to merge Corus to Cut UK cost. Merger will create world’s second largest steel maker after----------. Total recruitment set to touch 45000 in major hiring by LIC,SBI,PNB HNI are scouting properties abroad. R BI has raised the remittance limit from $1 lacs to $2 lacs Government may unveil housing sops today to invigorate t demand in housing sector U.S. policy makers are flooding the world with an extra $8.5 trillion through 23 different plans designed to bail out the financial system and pump up the economy. BOJ may go to ZERO bank rate (Vedio clip) . GM, Chrysler Failure Would Push U.S. Economy Deeper Into Abyss. A bankruptcy filing by either company would mean production cuts and plant closings, and tens of thousands of workers would be fired, industry analysts say. That would cause many suppliers to collapse, triggering more job losses, straining the cities and states where the car and parts companies operate, as well as federal safety-net programs

• March 1, 2009

Ranjan Dwivedi

Companies welcomed the first economic stimulus last weekend but said it did not

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Today’s World Wide Corporate Developments

• (28/16)Gold climbs to $829/ounce on weak $ • Sustained dollor selling by the banks and exporters strengthened the INR on Monday to close at 48.05 • Crude oil above $48/barrel • MBA of ISB Hyderabad Paper submitted that increase in interest rate by 50 basis point leads to immediate decline in consumption expenditure by as much as 10%. • Total outsourcing/offsourcing market is on upswing • India may manage to buck the global recession largely based on the buying March 1, 2009 Ranjan Dwivedi 14 power of the bottom 80% of the population 16Dec2008

Today’s World Wide Corporate Developments • Mumbai’s advanced tax collection growth dips • Reduced prices yet to trigger demand due to uncertain consumer ,saddeled with huge inventories dealers are demanding compensation • Few foreign banks are riding on their well heeled NRI clients to invest in Indian Mfbecause being Foreign body corporate cannot invest directly • MSME loans to be cheaper by 100basis

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March 1, 2009

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Today’s World Wide Corporate Developments

• Sensex O-9794 H-10009,L-9790,C-9977 • Pharma and FMCG have a greater say in the daily swings of the index • A window for Opportunities---Companies that are offering a “recession –proof” career to candidates are—Telecom , IT, Outsourcing/Professional Services ,Retail , Life Sciences and Infrastructure • Constant awareness of what will disappear and what are the new growth area • Road Ahead-Corporate India working with government on security. • Organising Culture is defining success. • Insurers serving cancellation notice to group mediclaim policy holder • States seek aid of Rs20kcr March 1, 2009 Ranjan Dwivedi for core and, social 16 17Dec2008 sector

Today’s World Wide Corporate Developments

• Micro Finance Institutions are emerging as the next asset class for PE funds where the risk level are moderate to high. • Attitude may matter more than talent says Warren Buffet .Develop the art of not coming in your own way and utilize whatever you have fully • IITians focus on rural India • Revenue of the states from VAT fell by 19.9% in November • FDI flows dip 26% to $1.49b in October • Sops to promote energy conservation • Banks may share exporters derivatives lossess • Pes eye food and agro –based cos. • Grab any offer coming your way: Pune B-School to students • 3G auctions limited to five players only because 3G spectrum is limited. March 1, 2009 Retailers cut prices Ranjan to Dwivedi 17 • Value lure buyers. 17Dec2008

Economic Terms of Corporate World

• Satyam Computer is bracing up for a ostile take over bid or a forced change of management against $1.6b deal with Mayatas Properties. • Second fiscal stimulus for sops to automobile , housing and steel sector • Corporate India and retail borrowers may soon get loan at cheaper rates and easer terms • If the ad is smart and the pruduct turns out be dud who is responsible? Law coming up. • Monetary policy should have been much more proactive and aggressive than perhaps it has been. • _______Maggi wont be kids stuff anymore and will be advertising for Family healthy food. • Essel Group to invest Rs 350Cr in schools all over india March 1, 2009 Ranjan Dwivedi 18 • How to stop non business surfing by employees 18Dec2008

Economic Terms of Corporate World

• Top ADS 1.Virgin Mobile 2.Vodafone Customer care3.TVSFlame4.Sun Direct5.Lux Srawbery Cream • The ministry of MSME to set up 250 training centres • Anil Agarwal Chairman Vidanta Group is Earnst and Young’s “Entrepreneur of the Year 2008” • United States to the zero-rate policies that Japan used for years in its own fight against deflation. • Crude $45 and Gold $846 • Sensex17/12/2008 March 1, 2009 Ranjan Dwivedi 19 18Dec2008 O=10073;H=10073;L=9682;C=9715

Economic Terms of Corporate World • Lesson from Satayam Computer as Management • Give priority to corporate governance for developing the faith of employees , share holders , customers and all other stake holder. • Strategic Meltdown : Stringent disclosure norms can help establish a better corporate governance system. But the moral crisis predicated by floundering ethical norms cannot be fully averted through regulatory alone • Chanda Kochhar set be new CEO of _____. • PTC(P_______Trading C_____) will now set up $1Bn PE Fund • Mukesh Ambani to integrate the core functions---HR, Training,Commercial & IT Services of his $35 Billion Conglomerate into one unit. Why? • Inflation slumps to 9-month low of 6.84% as per WPI for the week ended December 6 ,2008 • Auto Giants of US shutting down plants from Jan2009.20 March 1, 2009 Ranjan Dwivedi

19Dec2008

Economic Terms of Corporate World

• SensexO=9710;H=10110;L=9633;C=10076 Crude$43.23;Usd=46.95;Gold climbs $878 • Despite OPEC cut ,oil falls to 4-year low. • B-School Students come to develop elite social networks and aquire a credential that help them access a particular type of job • Continuous up gradation of knowledge is required to have an evergreen MBA • Govt recently raised import duty from 0% to 5%.Why should Govt fear steel imports • Banks may cut rates on FD’s by 100basis points. • The Government is considering an ordinance to get more organization to join the EPFO( Employees__________Organization. • 25million mobiles could be disconected, which do not have IMEI Number(International Mobile Equipment March 1, 2009 Ranjan Dwivedi 21 Identity Number). 19Dec2008

Economic Terms of Corporate World • What is Ponzi Scheme in Money market? • The job scenerio has deteriorated over the last few months but some sectors such as insurance and telecom are still hiring • RBI remittance window raised from $25000 to $200,000 can be used by the residents to open FDR with overseas bank, buy property,donate or gift.support education and travel. • Close to 40 clients of ICICI have signed MOU’s with the Bank to resolve the derivatives accounts • ITC, Accor and some HNI’s are in the race to aquire Hotels of Unitech • Chinese Handset without IMEI won’t have to discard the phones. • Government mulls reimposing 10% CVD on ironbars and structurals. March 1, 2009

23Dec2008

Ranjan Dwivedi

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Economic Terms of Corporate World • • •

Consumer Electronics looks to Santa for sales boost. Flip-flop on terror is not acceptable: US to Pakisthan. Sonia Gandhi and Shahrukh have found place among “50 most powerful People of the World” • Property developers says that the most of the enquires are coming from government employees • Corporate Governance??? A set of processes, customs, policies , laws & institutions affecting the way a corporation is directed, administrated or controlled. It also includes the relationship among the many stakeholders involved and the goals for which the corporation is governed. • Security firms and Architectural consultancies witness great demand . • Foreign grads eyeing jobs in India. • B-schools see rise in applications. • Companies keep staff motivated in this economic slowdown by regular meet and letters. March 1, 2009 Ranjan Dwivedi 23 • TCS and Infy offering Rs 3.15 lakh per annum to engg. Graduates 23Dec2008

Economic Terms of Corporate World

• Two qualities a CEO must have? Listening ability and commitment • Vedanta Aluminium seeks 1200 acres from west bengal for its proposed greenfield plant in the state. • The mumbai terror attack episode and global economic slowdown has proven disastrous for Indian tourism that contributes 6% of our GDP. Policyholders and the media should act for the stakeholders. • Calling for scrapping of Bus rapid Transit(BRT) project in New-Delhi. • Overcome mental recession • Companies facing a situation similar to the “Boiling Frog Syndrome”. • Ranbaxy plans to sell 3 overseas units March 1, 2009 Ranjan Dwivedi 24

23Dec2008

Economic Terms of Corporate World

• Government considering proposal to liberlize FDI in retail by allowing single brand retailers like –Diseal, spencer to dilute their stake in JVs in favour of ForeignPE firms. • To revive Jaguar and Land Rover Tata group is investing $1 Bn(4700Cr) • Fund Managers refuse to be tempted by surge in stock prices. • Insurance rates are set to rise for terrorism cover • Regulators may be barred from core sector project. • Glaxo(Horlics) drags Complan(Heinz India) over claims in the aids of nutrition value. • Vishal Retail ties up with mother Dairy for fruit and vegetables biz March 1, 2009 Ranjan Dwivedi 25 • Global Brand face rough weather but desi brand 24Dec2008

Economic Terms of Corporate World • Sensex Monday O=10102H=10173L=9894C=9928;Gold=846$ Oil =$43; 1$=48.01Rs • Why USD Strengthening inspite of recession in in USA • Paul Krugman difference between Liquidity crunch and solvency. • Dalal Street; Wall Street; Main Street • Cairn India makes new oil and gas discovery in Rajasthan • Dimond units of Surat asked to resume opeeration. • Toyota sees first operational loss of $1.7Bn in last 70 Yr history. March 1, 2009 Ranjan Dwivedi 26 • BOI’BOB,Canara Bank follow SBI and slash PLR 24Dec2008

Economic Terms of Corporate World • HCL Info oens development and designing centre at Jaipur • Three major undersea cable SeaMeWe4,SeaMe3 and Reliance Flag Euro Asia Cable were damaged due to seismic activity. • Marital status,Educational Qualification, Job Stability,Employer Profile also considered in personal Loan • SOIL(School of Inspired leadership) to be set up in Gurgoan by Anil Sachdeva-founder Grow Talent. • Cos go high tech to cut cost and save 24Dec2008 March 1, 2009

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