BESS INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, MUMBAI-09

SUMMERY OF ARTICLES

MAGEZINE: - CAPITAL MARKETING

MAY 02-20, 2011

Owner: Capital Market Publishers India Pvt. Ltd. Managing Director & Editor: S. Anantharaman Executive Director: Ruby Anand Assistant Editor: Y. J. Thakkar Senior Correspondent: Sameer Purohit

PREPARED BY:MISAM MERCHANT BHAKTI CHAUDHARI

SUBMITTED TO:PROF. MUSTUFA SAPATWALA DATE: - 24/09/2011

ARTICLE 1 AUTHOR: - VIJAY GHUTUKADE

PAGE NO. 17

Interest rates may be hiked up to 125 basis points in FY 2012, as per Capital Market poll of economists.
There is an upside risks to inflation from high international crude prices, their impact on deregulated petroleum products prices and pick-up in prices of non-food manufactured products. Prices of the Indian basket of crude oil increased to more than 30 month high of US$ 110.72 a barrel in March 2011. Accordingly, oil marketing companies may be allowed to hike domestic prices of petrol and diesel prices, on hold for long time, after state elections gets over mid May 2011. Price stability was the major stance of the RBIs policy for the last fiscal. The central bank raised key policy rate, the repo rate at which it lends to banks, by 200 basis points between 19 March 2010 and 17 March 2011.

The better than expected fiscal outcome for FY 2011 and lower than expected fiscal deficit for FY 2012 helped bond yields to ease. But the yield on benchmark 10-year government securities has rebounded to a two-month as inflation has exceeded the RBIs projection, raising expectation of aggressive monetary actions.

ARTICLE 2 AUTHOR: -SAI ANJALI

PAGE NO. 17

With increasing indigenization, the Japanese power crisis may affect some players more than the others.
This is not pretty picturing for the Indian auto manufactures and parts companies. There are already battling rising raw materials costs as well as auto parts shortage to meet the new wave in Indian vehicle demand.

Raw material costs have been on an upward trend over the past one year, which has led to easing of margin of the auto and auto part companies despite high sales volume. Companies may scout for alternative sources from different locations, while auto parts from different locations, while auto parts MNCs such as Toyota which is setting up a new engine plant of one lakh units per annum capacity and expanding its units per annum. As the global economic recovery gathers steam, the Indian auto and auto ancilliary sectors long cherished goal of becoming the hub for global markets is re-surfacing.

ARTICLE 3 AUTHOR: - SACHIN DABHADE

PAGE NO. 23

Shrinking domestic supplies on late rainfall in Kerala should trigger another rally
Prices have been hyper reactive to global developments over the last few years. One of the salient features for the local pepper trading has been the excellent volumes the counter has managed to garner. Liquidity has never been an issue for the king of spices.

The only active player in the international market over the next two-three months would be India, with Vietnam chipping in some of its offerings from last years carryover stocks.

Due to the current economic situation, major importers in the European Union and North America are not stocking adequate material for future consumption. This could bring in a massive gush of demand for the Indian produce, when supplies are at their peak in the next two months.

ARTICLE 4 AUTHOR: - HITESH DHARAWAT

PAGE NO. 67

MNC associate firms sizzle on rising speculation of open offers from foreign promoters to take their Indian arms private
As per the latest guidelines, a company can be delisted from the stock exchanges if the promoter group is successful in ramping up its stake above 90% through open offer. In case the promoter holding is already over 90%, then at least 50% of the delisting offer size has to be acquired to term it successful.

MNC associate stocks have been on a roll ever since a June 2010 government notification made it mandatory for all private companies to boost their public holding to 255 within three years to remain listed on the bourses.

To comply with the norms, foreign promoters are more likely to opt for delisting their Indian are rather than dilute their stake. For delisting to be successful, an attractive premium to the ruling market price has to be offered.

ARTICLE 5 AUTHOR: - TUSHAR DOCTOR

PAGE NO. 69

When an employer files e-returns, it is presumed the statements in the returns have been verified.
If the certificates of registration held by the employer requires an amendment of registration number, then the prescribed authority have to make necessary amendments in the certificate and issue a new certificate of registration to ensure compatibility with the automated system.

At present ,employers whose yearly profession tax liability is less than Rs. 5000 are required to file returns yearly, whose yearly tax liability is more than rs. 2000 are required to file returns quarterly and whose yearly tax liability tax liability is more than Rs. 20000 are required to upload returns monthly.

Rule 11E state that e-returns are presumed to be true returns. When an employer has enrolled himself with the website for availing e-services including the service of filing e-returns, has created own password so created by him, it is presumed that the statements contained in the returns field electronically are true to the best of his knowledge and belief.