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Urea fixed cost hike a relief, but not adequate: Experts

Written By Unknown on Jumat, 28 Februari 2014 | 18.01

The increase of Rs 350 per tonne will add an extra burden on the urea subsidy to the tune of Rs 900 crore. Already, the subsidy of Rs 32,000 was rolled over and there was no money with the government to pay the industry even on account bill after April and May (2013).

Hailing Cabinet Committee on Economic Affairs' (CCEA) move to hike the fixed cost for urea plants by Rs 350/tonne , experts believe the government has given some relief, but is yet to meet the industry expectations.
 
Suresh Krishnan, MD,  Zuari Industries believes the fixed cost of urea has been increasing substantially over a period of time and the industry was looking forward to a revision to the tune of Rs 500-700 per tonne but has been relieved only by Rs 350/tonne. 

He says the urea industry will take the discussion forward with the government to get some further relief. Krishnan says, for Zuari Industries, which produces about 4 lakh tonnes, will see Rs 12 crore additional profit before tax as a result of this decision.

Echoing his views, Satish Chander, DG, Fertiliser Association of India says the industry's fixed cost can be pegged at Rs 800/tonne on an average, but the government has given only Rs 350/tonne relief.

The total impact for the industry will be about Rs 900 crore/ annum, which will be what the government will bear as additional subsidy. Chander also says that the move is unlikely to affect retail prices as they are decided by the government but the fixed cost hike will entirely go to the industry.

Speaking about the subsidy, Chander said the subsidy of Rs 32,000 crore was rolled over and there was no money with the government to pay the industry even on account bill after April and May (2013).

He expects a similar rollover for the industry this fiscal, except in case of imported urea which is entirely on the government account and is paid upfront.

Zuari Agro Chem stock price

On February 28, 2014, Zuari Agro Chemicals closed at Rs 129.10, down Rs 1.75, or 1.34 percent. The 52-week high of the share was Rs 214.00 and the 52-week low was Rs 73.50.


The latest book value of the company is Rs 188.85 per share. At current value, the price-to-book value of the company was 0.68.


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KJMC Financial Services: Outcome of circular resolution

KJMC Financial Services has accorded their approval for allotment of 85000, 0% Compulsory Convertible Preference Shares of Rs 100 each at a premium of Rs 100 per share to KJMC Corporate Advisors (India).

KJMC Financial Services Ltd has informed BSE that the Board of Directors of the Company has accorded their approval by Circular Resolution passed on February 28, 2014 in respect of the following :1. The allotment of 85000, 0% Compulsory Convertible Preference Shares ("CCPS") of Rs. 100/- each at a premium of Rs. 100/- per share aggregating to Rs. 1,70,00,000/- (Rupees One Crore Seventy Lacs Only) to KJMC Corporate Advisors (India) Limited, a Promoter Group Company as per SEBI (ICDR) Regulations, 2009 on preferential basis which shall be compulsorily convertible into equity shares of the Company at an offer price of Rs. 20/- per share determined in accordance with the SEBI ICDR Regulations; and2. The redemption of existing 85,000, 12% Non Cumulative Redeemable Preference Shares of Rs. 100/- each out of the proceeds of aforesaid allotment of 85000, CCPS of the Company.Source : BSE

Read all announcements in KJMC Fin Ser


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Why you should not withdraw Mutual Fund SIP?

Ramalingam K
www.holisticinvestment.in

In this competitive world everybody wants to make or get more money. For each and every investment everyone requires more return. One of the easiest and safest way to make more return is Mutual Fund SIP (Systematic Investment Plan). Actually, before to invest most of the investors has lot of questions in their mind. Especially during market fluctuations, of all, there are two questions run in everyone's mind.

Why Investors should not stop/withdraw Mutual Fund SIP during volatile times?
Did you know that Mutual Fund SIP is the sweetest fear fighter, to meet out market fluctuations? Yes, you read it right. First and foremost point of investing Mutual Fund SIP is to overcome market volatility.

Mutual Fund SIP enables you to buy more during down times:
Since a fixed amount is spent for investing, market fluctuations can be overcome. Risk can also be minimised. It enables investors to buy more when the market price is low, which actually is the proper time to buy.

When the market is subdued, investors can buy lot of units because the prices go low. Buying at low prices is one best way of accumulating more mutual fund units. When the market booms, investors can sell it in huge and probability of getting profit also goes very high.

Mutual Fund SIP guides you to buy more units when the prices go downcast. Look at your portfolio when the market goes up, you would have made a huge profit by buying a lot at a lower price. How does it happen? Rupee cost averaging that occurs due to SIP average out the cost over a period of time. You will be able to buy more instruments when the Net Asset Value (NAV) goes down and you can opt to buy lesser number of units when NAV rises up.

Mutual Fund SIP is the best long term solution to consider when the market is down:
An important source of long term financing, equity offers lot of advantages as well as good returns. Have you ever thought of stopping your children from going to school just because they scored low in couple of exams? Schooling discipline the way children study and behave, right? Likewise, you will witness ups and down in the market. Mutual Fund SIP streamlines the processes and help you gain in the long term.

Mutual Fund SIP is the plan through which investors can invest in mutual funds through small and periodic instalments in a regular systematic way. This system helps in gain high benefits even if the market fluctuates.

Mutual Fund SIP in a volatile market:
The success of equity investment depends on market fluctuations. Not only selecting the reliable companies (where?) and when to invest is also playing a vital role in getting high returns. Whereas, mutual fund SIP helps in solving the problem of when and where to invest during volatile times.

Choose Mutual Fund SIP way to grow your investment during this volatile market.

Mutual Fund SIP is the right way if the market is down for some temporary reasons:
Many organizations today have performance measurements of the employees to run successfully. No company will lay off the employee if he/she has under-performed in a single quarter. If they start laying off the employees for under-performance due to temporary reasons, the organization will end up having significant trouble in operations.
In the same way, there are various temporary factors create an impact on how the market works and also the mutual funds. For example, elections anticipated in the coming months can create a negative impact on certain instruments. Selling these without thinking long term will lead to a negative mode. If you continue your mutual fund SIP during these temporary down phase you will reap more once the market recovers.

What needs to be done to keep your SIPs successful?
Prior choosing any scheme, evaluate the qualitative and quantitative parameters like returns over extended period of time, fund house's quality, risk ratios, profile of fund's manager, objective and necessity of investment etc.

1. Analyse the performance of Mutual Fund SIP periodically
2. Avoid starting two Mutual Fund SIPS in similar schemes
3. Do not go for any fund just because they are star rated. Analyse them appropriately.

Investment models are created to meet out financial crises. So, a disciplined way of investment is required to grow your money. A study says, even though Mutual Fund SIP delivers lot of advantages, nearly 11.5 lakhs Mutual Fund SIP in equity funds have been stopped in 2012. And another 4.93 lakhs were not reinvested. Even the situation continues till now.

It is utmost important to understand that the right allocation of funds on Mutual Fund SIPs will not only save you during down times but also reward you in multiples when the market is up. Terminating Mutual Fund SIP, when the market is down is one of the worst investing decision people make. Never do this.

The author is Ramalingam K, CFP CM is the Chief Financial Planner at holisticinvestment.in, a leading Financial Planning and Wealth Management company.


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Did US regulator staff indulge in insider trading?

Moneycontrol Bureau

A study by an Indian-origin professor and a doctoral student has raised troubling questions about whether employees at the United States Securities and Exchange Commission indulged in trading on insider information, an offence the regulator is in charge of looking into and preventing.

A 52-page report, sarcastically titled 'Stock Picking Skills of SEC Employees' put together by Shivaram Rajgopal, accounting professor at Emory University, and PhD student Roger M White found that several members of the SEC staff sold shares of firms ahead of an enforcement action against them was taken by the regulator.

The duo managed to obtain partial trading information about staff at the regulator under the Freedom of Information Act and the results indicate that "SEC employees continue to take advantage of non-public information to trade profitably in stocks under their regulatory purview," according to the report.

The SEC, however, provided an explanation for the trades. Speaking to the Washington Post, spokesperson John Nester said that before staff take up an issue involving a company, policy dictates that they have to sell any holdings of stock in that firm. "Most of the sales were required by SEC policy. Staff had no choice. They were required to sell," Nester said.

The SEC spokesperson further clarified that "each of the transactions was individually reviewed and approved in advance by the Ethics office."

But many analysts are not convinced by the explanation. "Individual stock ownership obviously creates the possibility of corruption, or the appearance of corruption, at least one of which seems to be represented by this paper," wrote Bloomberg View columnist Matt Levine. "The bigger question is why are so many SEC employees trading stocks in the first place?"

Levine has a point: many reputed brokerage firms in which analysts cover stocks – and where the potential for appearance of conflict of interest exists – disallow the staff to directly own individual stocks, and mandate stock ownership only through mutual funds .

This is not the first time there have been accusations of insider trading against officials of a regulatory agency that is in charge of protecting individual shareholders from market manipulation, taking action against insider-trading violations and promoting fair and efficient markets.

In fact, the SEC started tracking data on its employees' transactions only as late as in 2009 when rules were put in requiring clearance for any individual securities transaction, the Washington Post report says.

But as Levine says, "It's just weird that so many SEC employees fancy themselves as stock-pickers."


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Go long in Voltas, advises Ashish Chaturmohta

Written By Unknown on Rabu, 26 Februari 2014 | 18.01

According to Ashish Chaturmohta of Fortune Equity Broker, one may go long in Voltas as the stock may test Rs 140-145.

Ashish Chaturmohta of Fortune Equity Broker told CNBC-TV18, " We like  Larsen and Toubro (L&T), Siemens , Voltas  and Crompton Greaves  because we have seen a good amount of long build up in most of these stocks and in last two months we have seen a consistent rise in open interest (OI) in most of these stocks."

"At this point of time, we are recommending a long position in Voltas because this stock after a very long consolidation has given a breakout above Rs 130. So we are expecting a target of Rs 140-145 levels in the stock in next one-two weeks with a stop loss below Rs 127," he said.

Disclosure: Analyst does not have any personal holding in the stock.


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UltraTech Cement may test Rs 1890-1900: Sahil Kapoor

Sahil Kapoor of Edelweiss RCM Research is of the view that UltraTech Cement may rebound to Rs 1890-1900.

Sahil Kapoor of Edelweiss RCM Research told CNBC-TV18, "I am seeing the cement rally more as a rebound rather than as a change of a trend. The short-term to medium-term trend in cements stock is still down and this short-term rally is possibly going to again end up facing a lot of selling pressure."

" UltraTech Cement possibly could see rebound towards Rs 1890-1900 and for Ambuja Cements  Rs 170-175 is a clear cut resistance level. So, I think these levels will again see sellers come back and possibly the stock should head downwards. Any rebounds in these stocks should be utilised to lighten up for the short-term traders," he said.


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McLaren teases 650S before Geneva 2014 unveil

Among many rumours floating in the industry, it is being speculated that the new sports car can either be a more powerful version of the 12C (with power boosted to 650PS)

After making auto enthusiasts around the world weak-kneed by showcasing their technologically ground breaking supercar the P1, McLaren are all set to remove the cover on the much rumoured and talked about new sports car at the next months Geneva Motor Show. They are calling it the 650S, and have shown just a single teaser image to the public as of now; no other details are out yet.

McLaren-650s 

McLaren 650s teaser

Surrounding various speculations, McLaren have said that this new model will be spaced between the 12C and P1 supercars. As per the announcement, this car is designed and developed to offer the enthusiastic driver the ultimate in luxury, engagement and excitement, as well as dramatic yet beautiful styling.McLaren Global Communications director, Wayne Bruce as said that this is not the much rumoured P13 and it doesnt replace the 12C.Among many rumours floating in the industry, it is being speculated that the new sports car can either be a more powerful version of the 12C (with power boosted to 650PS), or a dedicated model between the 12C and the P1 codenamed P15.More details will be released in the run-up to the cars global reveal, which will take place at McLarens stand on March 4, 2014 (11.00GMT), at Geneva.


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Shuddh desi appeal: Sushant Singh Rajput

Sohini Mitter/ Forbes India

At 27, Sushant Singh Rajput is at the forefront  of a fresh wave of talent in Bollywood.

Sushant Singh Rajput was a wide-eyed teen in Delhi when he first harboured dreams of working in a Yash Raj film. For someone growing up in the '90s—when Yash Raj Films (YRF) was giving Hindi cinema a new look replete with mustard fields, Swiss Alps and homeward-bound NRIs—that wasn't an inexplicable desire. A little more than a decade later, Rajput not only has a three-film deal with the production house, but is also handled by YRF's talent management division.

The 27-year-old Rajput had another dream while he was taking baby steps in the film industry. He wished to be featured in Forbes India! "It was my dream ever since I saw Shah Rukh Khan on the cover," he says.

The actor, who is self-confessedly reticent, is refreshingly excited as he speaks to Forbes India from Kolkata, where he is currently shooting for Dibakar Banerjee's period film Detective Byomkesh Bakshi. He is in a cocoon, what his publicist calls "the movie zone"; he has shed his rippling muscles and transformed himself into a mild-mannered Bengali sleuth from the 1940s. He has detached himself from the outside world, declining media appearances, completely surrendering himself to the character—and his director.

"I go on sets, shoot, and return to the hotel. The only Calcutta I've seen was when I'd come for recce with the unit," says Rajput, who is happy operating that way. "This is what I want… find more layers to the character, build it up and totally give in to the director."

He was an unconventional choice for Byomkesh, a character played to near perfection by Rajit Kapur in a Doordarshan series in the '90s. Rajput admits to being both "excited and nervous" when he was offered the role. It came at a time when the television-turned-film actor's sparkling debut in Kai Po Che! had caught the eye of the film fraternity. A critic wrote of his performance: "The actor has an indescribable presence, and it's clear from his confidence and distinct likeability that a star is born."

By then he had already been signed by filmmaker Raj Kumar Hirani for an appearance in the Aamir Khan-starrer Peekay. It is reported that Rajput did the film for free. That was followed by the YRF deal starting with the solo hero film Shuddh Desi Romance. And then, Dibakar Banerjee, who'd bought the rights to all Byomkesh stories, found his protagonist in Rajput.

"I think it's a tough filter when you transit from the small screen to the big screen," Banerjee tells Forbes India in an email. "Sushant's personal account of moving from the box to the plex is little known. He actually quit TV at the height of his fame on Pavitra Rishta [a Zee TV show where he played the lead], took a sabbatical, reconsidered his options, and plunged into the unknown. It was a huge risk. We only see the move in hindsight after he was picked up by YRF. At that time, it wasn't so easy."

For Rajput, though, acting was more than just a profession. It was an outlet to his suppressed emotions, desires and anxieties. "I'm painfully shy. I can't talk. I just can't express myself. And that is one of the reasons I became an actor. To be all these people that I play and go through all the emotions that they go through," he says.

He'd set out to be an engineer. Academically bright, he enrolled in the Delhi College of Engineering but dropped out to pursue his passion. He joined Shiamak Davar's dance classes and went on to perform at the 2006 Commonwealth Games in Melbourne. "That's where it all started. It was such a powerful experience that I thought this is what I want to do all my life. Be a performer," says Rajput.

He would later join Barry John's theatre classes and do shows that "were liberating". After moving to Mumbai in 2007, he joined Nadira Babbar's Ekjute theatre company. During one of the performances at Prithvi theatre, he was spotted by the casting team of Balaji Telefilms who called him for an audition. And television happened.

He bagged a role in the Star Plus soap Kis Desh Mein Hai Meraa Dil and then went on to play the lead role in Zee TV's top-rated show Pavitra Rishta, which made him a household name. Rajput says, "I've never planned my career. I had nothing when I started out. And getting fame and attention was never a criterion for me."

Films happened by accident too. Rajput was headed for a filmmaking course at Stanford University when he met casting director Mukesh Chhabra one afternoon at a tea stall in Mumbai's upmarket Lokhandwala. He was asked to audition for a UTV film directed by Abhishek Kapoor (who'd made the successful Rock On!). The actor who'd started to feel "stagnated" in TV "doing the same thing day in and day out" accepted readily.

Barely two films old, but with plenty of interesting projects in the kitty, Rajput is arguably Bollywood's new poster boy. He's been hailed as "the next SRK" by some industry watchers. Veteran filmmaker Shekhar Kapur called him "one of the most inspiring young actors to emerge out of India" and roped him in for his much-awaited film Paani.

Filmmaker and critic Pratim D Gupta says, "Despite Kai Po Che! being a three-hero film, Sushant exhibited a starry flair. There was an aura about him which could translate into a big star. And the big opening of Shuddh Desi Romance reaffirmed his star appeal. People came to believe that he can pull audiences and give a film a good opening."

The journey has just started for Rajput. "I've an undying hunger to learn, to explore. That is why I am an actor. I am living my dream," he says.

"I've never planned my career. I had nothing when I started out. And getting fame and attention was never a criterion for me" 

For more on Forbes stories:

India Inc Gets Smarter With Travel Spends
Embracing Intelligent Failure
Can An NBA Team Reinvent A City?


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