1

EDITORIAL
Knowledge is power, but enthusiasm pulls the switch.
In this fast paced environment, one must keep up-to-date with the
recent happenings. Be it the inflation rate, new developments in
technology or a big business story, students at BBS yearn for more and
more information.
SYRINX, the Annual Newsletter Committee is at your service yet again,
with something entirely new.
We at BBS, feel the need to be conscious of what goes on around us.
This is an attempt to collect the latest business buzz; Team SYRINX

COMMUNIQUE

presents
-INFORMATION BULLETIN to
equip students with the latest in and around the globe.
We hope to assist the students at BBS in keeping themselves apprised of
the news and views through this Information Bulletin. And in this
endeavor we seek your suggestions and contributions in the times to
come.

Here comes the first issue

Let the pages roll!!!!!!!!!!!!!!!!

INFORMATION BULLETIN CONTENTS..

S.No

Title

Page No.

Current Chronicles

IN FOCUS -Cover Story (Coal India, IPO)

11

Personalities to emulate, Narendra Murkumbi

15

Personalities to emulate, Zia Mody

17

M&A

18

Important terms (Banking)

22

Trivia, Getting ready for Job Interview

24

Trivia, Ace that Interview

27

CURRENT CHRONICLE
1. PM shuffles his old pack
Prime Minister Manmohan Singh shuffled his team on 19 January 2011,
in a modest exercise focused on economic ministries that did not involve
any dismissals. The changes were described as a perform-or-perish
message to the ministers ahead of the larger expansion planned after the
budget session ending in May.
CABINET CHANGES
Sharad Pawar-stays on in agriculture, gains food processing, but
loses food and civil supplies against the backdrop of spiralling
food prices.
Praful Patel-got an upgrade to Cabinet rank, but was moved from
glamorous civil aviation to the more mundane heavy industries
ministry.
Murli Deora-from petroleum to corporate affairs
Kamal Nath-from highways and roads to urban development
Virbhadra Singh-Loses steel. Gets small and medium enterprises
Jaipal Reddy -Gains, gets petroleum & gas
C P Joshi-Moved laterally from rural devpt to roads
Selja-Gets additional charge of culture, loses tourism
Pawan Bansal- Retains parl affairs, loses water resources, gains
science, tech
Ajay Maken-Sports affairs and youth
Beni Prasad Verma-Steel.
M S Gill-loses sports ministry and will be doing numbercrunching at the ministry of statistics and programme
implementation.
KV Thomas-charge of food and civil supplies
V Narayanasamy-new MoS in the Prime Ministers Office
4

 Vilasrao Deshmukh-shifted from the heavy industries ministry to

rural development

2. TEJAS- Indias first indigenous combat Aircraft cleared to

operate by Indian air force pilots.

On January 10,2011 the Indian Air Force (IAF) formally announced the
countrys new, indigenous fighter, the Tejas Light Combat Aircraft
(LCA. Once its entire flight envelope and weapons are cleared for
operation, the new aircraft, developed for the past 20 years, will equip
the first fighter squadron operating 20 aircraft in about two years.
Tejas, is the first fighter aircraft ever to be developed by India and was
designed by the Bangalore based Aeronautical Development Agency
(ADA) under the Defence Research and Development Organization
(DRDO). Final assembly of the aircraft and flight testing are performed
at Hindustan Aeronautics (HAL) plant at Bangalore.
Source: http://defense-update.com
3. INDIA GETS UNSC NON-PERMANENT SEAT

The biggest news on the international front for India has been its
inclusion into the UNSC as a non-permanent member after a gap of 19
years. India got an unbelievable 187 of the 191 votes in the UN General
Assembly ballot on October 14th 2010. India's previous spell in the
Security Council was way back in 1992.India will attempt to bring into
play the two years needed to render their allies a feeling of aplomb and
formulate trust and faith so that they are at ease with these countries
role playing in the United Nation Security Council on a continued
period of time'.
4. INFLATION HITS ESSENTIAL COMMODITIES

Prices of seven of the most essential commodities for example that make
up the most of our meals for the day have steeped upwards by a
percentage of 18 on an boilerplate for over one year long period (Aug
09 Aug 10) while per capita earnings of an boilerplate Indian citizen
has seen a surge by 10.4% (these facts have been obtained by a research
from ASSOCHAM). At the same time as prices of all kinds of staple
commodities experienced an aciculate boost, alignment amid 40%, 27%,
and 26%, in that order, added necessities for daily meals saw a rising
instant in the ambit of 11%, 10%, 9% and 7% in that order. The per
capita earnings of a boilerplate Indian was seen about Rs. 40,141/- per
annum in the previous financial year amplified by about Rs. 4,404/- in
the current year, totaling to Rs. 44,345/- each year. The values of
condiments and spices and condiments belted quite higher from the
phase in 2009 August and have seen significantly greater animation in
their prices which shot up to the bar of over 40% amid the year long
period specified earlier.

5. INDIA GETS 1% OF WORLDS AUTO

6

According to a study carried out by FICCI, India stands 22nd in auto

exports. Indian auto industry strives to accomplish consigns ambition of
USD 12 billion in the next four years: FICCI strives 3% allotment in allaround exports in the next six years. Despite the fact that India has
coped to be the seventh largest manufacturer of automobiles all across
the globe but it continues to be a miniature contributor in the allaround market, empiric FICCI Abstraction on Indian Auto Exports.
The share of the country in all-around automobile exports is a bare 1%
in the previous year and our country ranks 22nd in car exports
declining abaft countries like Thailand and China (in Asia), Mexico,
Argentina, Brazil (North and Latin America) and Turkey (from
Europe), acclaimed FICCI Study. Regardless of this, Indian vehicle
business is assured of accomplishing its consign ambition of USD 12
billion within the next three to four years, which will be great
considering the fact it will be two years prior to the planned year of
2016 outlined in Automotive Mission Plan 2006-16.

6. SENSEX DROPS 458 POINTS

The Bombay Stock Exchange recently fell by a total of 458 points. The
reasons for the underperformance of the Indian Equity market have
been said to be the series of scams that were unearthed from mid
November. Just last month, CBI officials discovered a bribe for loan
scandal that involved several officials from financial firms and a few
state run banks. The 10.8% rise in industrial growth since last month
could not help and several indices ended with huge losses. Major loses
were mainly suffered by PSUs, realty, consumer durables and
healthcare.

7. PREMJI DONATES 8,846 CRORES TO IMPROVE

EDUCATION IN INDIA

Azim Premji , Chairman of WIPRO will transfer 213 million equity

shares valued at 8846 crores to an irrevocable trust for charity. This will
add a lot of muscle to the Azim Premji Foundation which was set up few
years back in its quest to improve the standard of education. The
foundation will focus on providing quality education in rural India and
the the government has also pitched in to open the Azim Premji
foundation where higher education will be provided.
SOURCE: http://www.civilserviceindia.com

8. INDIA''S FOREX RESERVES DIP USD 752 MN TO USD 298.66

BN
Feb 18 India''s foreign exchange reserves declined by USD 752-million
to USD 298.663-billion for the week ending February 11, the Reserve
Bank said today. India''s total foreign exchange reserves had stood at
USD 299.415-billion the previous week. Foreign currency assets, the
biggest component of the foreign reserves were down USD 707 million,
RBI said in its weekly data released this evening. Foreign currency
assets expressed in US dollar terms include the effect of appreciation or
depreciation of the non-US currencies, such as the euro, pound and yen,
held in the reserves, the apex bank said. The value of the country''s gold
reserves remained unchanged at USD 21.92-billion. Both the special
drawing rights (SDRs) and reserve position in the IMF also declined
8

during the reporting week. The SDRs were down USD 31 million to
USD 5.124 billion while India''s reserve position in the IMF declined
USD 14 million to USD 2.247 billion.

9. PETROL PRICE HIKE: FROM RS 8 TO RS 58 IN 20 YEARS

Fuel retailers in India will raise petrol prices by about 4.5 per cent,
putting increased pressure on wallets as the country battles the highest
inflation of any major Asian economy. Bharat Petroleum Corp would
raise the petrol price by 2.53 rupees a litre, Hindustan Petroleum Corp
by 2.54 rupees a litre, and Indian Oil Corp, India's biggest fuel retailer,
by about 2.50 rupees a litre.

The price increases were needed due to rising global crude oil prices.
Revised petrol prices in Delhi are now Rs 58.37 per litre. In the last two
decades fuel prices have escalated, in keeping with variables such as
sales tax revisions, effective retail price of crude and increase in local
levies. The price increases could bring indirect benefits to the
government. The oil ministry calculated higher prices will more than
halve the losses of state-run oil marketing firms to about $ 11.4 billion in
the year ending March 31, 2011. From July 1 - Sept 21 a series of gentle
increments by companies brought petrol prices to 51.83 rupees per litre
by Sept. 1, up less than 1 percent since the jump at June deregulation.
In December, 2010 the biggest hike since deregulation, of 5.6 percent,
propelled petrol prices over 53 rupees per litre, as global oil prices
hover around $ 90 per barrel.
Source: http://ibnlive.in.com/news

NEW BRANDS
APPLE I-PAD 'LAUNCHED' IN INDIA

Apple officially launched its web tablet-iPad in India. . Apple iPad is

complete internet oriented device that can run on WiFi and 3G. You
can watch movies, hear music, browser photos and run games if a
connection is not available. The real power of iPad comes into play
when its connected to internet. There is email and social networking,
streaming, navigation using Google maps plus unlimited possibilities
from millions of applications. The Apple iPad can be called a bigger
version of Apple iPhone and iPod. Apple will soon be releasing a
software development kit for developing applications for iPad. Apple
iPad is pretty large device with capacitive multi-touch screen of 24.6cm
measured diagonally. It is available in 16-32-64 GB storage based
on price and configuration. Multi-touch and accelerometer sensor
enables the smooth operation of device features. However, a
disappointing fact is that Apple iPad doesnt support multi-tasking and
Flash on web pages and theres no front camera and USB connectivity.
The prices for WiFi and 3G+WiFi models will be as given below.
iPad with Wi-Fi

16 GB

32 GB

64 GB

10

Connect to the internet wherever you

can access a Wi-Fi spot

iPad with Wi-Fi plus 3G

Connect to the internet at Wi-Fi
hotspots, over 3G networks

Rs. 27,900

Rs. 32,900

Rs. 37,900

16 GB

32 GB

64 GB

Rs. 34,900

Rs. 39,900

Rs. 44,900

IN FOCUS.COVER STORY
COAL INDIA LTD. (IPO)

Coal India IPO became the biggest Indian IPO when it opened on the
18th of October 2010. The IPO fetched the government $3 billion, by
divesting about 10% of its stake in this Navratna. The big numbers are
not surprising given that Coal India is the biggest coal producer in the
world with a production of 431.26 million tons in 2010. Coal India also
holds the highest coal reserves in the world, and produced 81.9% of
total coal production in India. They had revenues of Rs. 525,922.92
million in 2010, with a profit after tax of Rs. 98,294.09 million in 2010.
The Networth was Rs. 258,437.73 million, cash and bank balances of Rs.
390,777.60 million, and total debt of Rs. 20,868.51 million, and had
397,158 employees.
With numbers such as these, it is easy to see why CARE assigned a
grade of 5 out of 5 to the Coal India IPO. Point worth repeating is
that IPO grades dont take pricing into account, and only consider the
fundamental strength of the company.
Coal India operates 471 mines in 21 major coal fields across 8 states in
India. They produce non coking coal, and coking coal, but the majority
of raw coal production is non coking coal with 91.6%. Despite the big
numbers, Coal India continues to expand with 45 projects lined up as of
11

March 2010. Of these 22 projects are capacity expansion projects and

23 are new mine projects.

Coal India IPO Price

A price band of the issue is at Rs 225-245 a share. Prasad Baji of
Edelweiss Securities said that the market needs to treat CIL as an utility
play. According to him, CILs fair value is at Rs 316 per share as coal
prices are unlikely to come down in India. "Our assessment of fair value
is Rs 316 based on a DCF valuation. Even on EV/EBITDA basis we are
getting at Rs 300 price so there is some amount left on the table in this
issue," he said.
However, Paresh Jain of Angel Broking differs. According to Jain,
CILs fair value is at Rs 294 per share, which is based on the DCF
valuation methodology. "We feel that the downside from the issue price
is capped. There are no anchor investors in this particular issue. Most of
the long only issue funds that need a good chunk of the stock would
have to come and purchase it from the open market. That would give a
boost to your stock price. I would advice investors to hold on to the
stock because clearly our country is deficit in coal. Going forward as
you see the washeries coming in, you will see earnings growth much
faster 2013 onwards," he reasoned.

IPO Subscription
The issue has been subscribed more than 15.28 times, including major
contribution from qualified institutional buyers (QIBs) followed by noninstitutional investors (NIIs) and retail investors.
For the reserved portion of QIBs foreign institutional investors put in
bids for USD 27.5 billion worth of equity shares followed by domestic
financial institutions and mutual funds with USD 10 billion and USD 1.4
billion, respectively. (USD 1 = Rs 44)
The reserved portion of non-institutional investors was subscribed 25.4
times and retail 2.31 times while employees' portion was subscribed just
0.1 times. Institutional investors have gone all out for Coal India with
the IPO getting highest-ever demand received by an Indian issue. QIB
generated demand for CIL was at Rs 1,73,398 crore with 100% margin
while Rs 1,88,923 crore with 10% margin in case of Reliance Power
12

IPO, which launched in 2008. In case of Reliance Power, QIBs' portion

had subscribed 30.68 times.

An Overview about IPO

WHAT IS IPO?
Initial public offering (IPO) is an offering of stock or shares to the
general public by a company which wants to raise capital for the first
time. Following an IPO, the company gets listed and its shares are
traded on stock exchanges.
Sometimes, the owner of a company, who holds most of the shares in a
company, sells his/her holdings in the market to raise money for himself
/herself through offer for sale of shares. Such offer for sale of shares is
also known as IPO if this is happening for the first time and will lead to
listing of the company on stock exchanges.
Many a time, the government might be offering IPOs under its
disinvestment policy . In a disinvestment, government sells a part or the
entire holding in a public sector company through offer for sale of
shares to public.
The money paid by investors for an IPO goes directly to the company.
However, in the offer for sale of shares in the course of disinvestment,
the money goes to the government. Once the permission to trade these
shares are granted to shareholders, the profit or loss incurred on the
transactions accrues to the shareholders. The future profits made by a
company are also distributed among shareholders as dividend.

HOW IS THE IPO DONE?

IPOs can be made through the fixed price method, book building
method or a combination of both. In the fixed price method, the price at
which the securities are offered is fixed in advance. In the book building
method, the investors have to bid for shares within a price band
specified by the issuer and the final price is decided after observing the
result of the bidding.
The fixing of the band and the bidding process are done with the help of
a book runner, typically an investment bank or a group of several
companies specializing in securities. The prices are decided by the
companys board of directors, which fixes the band after consulting the
book runner. In India, the issuer is allowed a price band of 20% (that is
the cap of band should not be more than 20% above the floor price).
13

In Coal India Limiteds (CIL) case, for instance, the floor price was Rs
225 while the cap was at Rs 245.
HOW IS THE FINAL PRICE DECIDED?
After deciding the band, bids are invited on all prices of the band, which
means in CILs case there were bids at 21 prices. Apart from the prices
of the band, retail individual investors may also bid at the cutoff, which
means they are allowed to say that they will buy the number of shares
they are asking for at whatever price is ultimately determined.
Once the book is closed, the seller fixes the price at which all of its
shares will get sold. In case of CIL shares offer, it is the government
which will fix the final offer price. In this, there were bids totalling to
961 crore shares, or about 15 times the number on offer. The first figure
is the estimate of the money which the government would have raised if
it managed to sell all the shares offered at the highest price of the band.
The second is the combined value of all the bids actually received.

WHAT HAPPENS TO THE EXTRA BIDS?

As the government can only sell the initially fixed 63 crore shares, it will
do so in this case at the highest price. So, those who bid at Rs 245 or the
cutoff will be eligible for allocation of shares, where bids for lower
prices will not.
In the retail and non-institutional category, the allocation will be done
proportionately between all those who bid at that price. So, for instance,
if these categories have been oversubscribed say 10 times at the relevant
price, each bidder will get only one-tenth of the amount he has bid for.
Source

http://economictimes.indiatimes.com

14

PERSONALITIES TO EMULATE

NARENDRA MURKUMBI
ET BIZ AWARDS EMTERPRENEUR OF THE YEAR

Narendra Madhusudan Murkumbi is a Promoter of Murkumbi Bioagro

Pvt. Ltd. Mr. Murkumbi is the Co-founder of Shree Renuka Sugars
Limited and serves as its Managing Director. He serves as the Chief
Executive Officer of Renuka Commodities DMCC.
He has rich experience in small-scale industry, the agriculture sector
and the rural economy. He serves as Chairman of the Board at KBK
Chem-Engineering Pvt. Ltd. He serves as the Vice Chairman of Shree
Renuka Sugars Limited.
His Story : When he graduated from IIM, Ahmedabad, he wanted to
start his own agri-business. He dabbled in bio-pesticides, but soon his
interest shifted to sugar.
But he did not have the Rs 100 crore needed to set up a mill. At that
time, the Andhra Pradesh (AP) government was selling a sugar unit for
Rs 55 crore. He wanted to buy it and bring it to Belgaum, which grew
lots of high-yield cane. But he did not have the cash to do even that.

15

With great difficulty, he convinced IDBI to lend up to 60 per cent of

that cost. He also got the Sugar Development Fund to contribute
another 15 per cent of the project cost as equity. He then went about
raising the remaining 25 per cent. But, after exhausting his options, he
was still about Rs 5 crore short. Then, the stockmarket was indifferent
to the sugar industry. So an IPO was ruled out. Thats when he turned
to the farmers.
His mother, Vidya Murkumbi, chairperson of SRS, visited 80 villages to
talk to the farmers. Her pitch was simple. There was oversupply of
sugarcane in the district. Farmers were travelling 60-70 km to sell their
produce in Raibaga. There were payment delays and defaults. By
setting up a plant in Belgaum, SRS would step up cane offtake and
make prompt payments. In return, each farmer would have to buy at
least 500 SRS shares at Rs 10 each. Not everyone was convinced. Most
invested only after they saw the mill coming up. In the end, 9,900
farmers bought the story and the stock the latter, in many cases, with
borrowed money.
That was SRS defining moment.
Since then, Murkumbi has turned the company into a fully integrated
sugar maker with power generation and refining capacities. It has also
become a major merchant exporter of sugar and is setting up a 2,000
tonnes per day sugar refinery in Haldia the largest in India
primarily for exports.
Narendra Murkumbi became a billionaire all right. But he also created
wealth for thousands of cane farmers .SRS has helped them with better
seeds, fertilisers and loans at the initial stages. It has also bettered their
farming methods and monitored cane quality. With little capital, Shree
Renuka Sugars has become Indias eighth largest sugar company. More
importantly, it earns a 46 per cent return on capital employed, the
highest in the industry and almost double the industry average of 20-25
per cent.

16

ZIA MODY

Zia Mody is a prominent Indian legal consultant. She is considered an

authority on corporate merger and acquisition law, securities law,
private equity and project finance. She started her own practice
in Mumbai in 1984, which she merged twice with other firms to
form AZB & Partners, now India's second-largest law firm, where she
is a senior partner. She is also a member of the Securities and Exchange
Board of India's Standing Committee on Mutual Funds, and of the
Capital Market Committee of the Federation of Indian Chambers of
Commerce and Industry.
Zia's experience includes the following practice areas: Mergers &
Acquisitions, Joint Ventures, Foreign Inward Investment Related Practice
and Corporate Law Project and Other Financing , Litigation and
Arbitration, Offshore Funds/Venture Capital/Private Equity Funds .
Zia Mody, one of India's top corporate lawyers, is known
internationally for her legal and business acumen. Business
Today selected Zia as one of the 25 Most Powerful Women in Indian
Business. The Asia Law Leading Lawyers Survey identified her as one
of Asia's leading business lawyers in the field of corporate finance. She
is a recipient of the Financial Express Knowledge Professional of the
Year Award. She was also named one of India's 100 Most Powerful
CEOs by The Economic Times in 2004 and 2006. She is also the
recipient of The Economic Times Awards for Corporate Excellence as
the Businesswoman of the Year, 2010.

17

MERGERS AND ACQUISITIONS IN INDIA

The process of mergers and acquisitions has gained substantial
importance in today's corporate world. This process is extensively used
for restructuring the business organizations.
In India, the concept of mergers and acquisitions was initiated by the
government bodies. Some well known financial organizations also took
the necessary initiatives to restructure the corporate sector of India by
adopting the mergers and acquisitions policies. The increased
competition in the global market has prompted the Indian companies to
go for mergers and acquisitions as an important strategic choice.
Mergers and Acquisitions in India- The Latest Trends
Till recent past, the incidence of Indian Entrepreneurs acquiring
foreign enterprises was not so common. The situation has undergone a
sea change in the last couple of years. Acquisition of foreign companies
by the Indian businesses has been the latest trend in the Indian
corporate sector.

Acquirer
Target
Sector
Deal
Domestic Deals in January, 2010: 32 Deals of value $2.16 Billion
Encore Cement
ACC
Cement
A
and Addictive
Standard
Havells India
Electricals
A ($25.53mn)
Electricals
Srei-led
S ($36.6mn,
DPSC
Energy
Consortium
57%)
Gems and
Gitanjali Gems
Morellato India
A ($1.06mn)
Jewellery
Ranbaxy
Biovel Lifesciences Health care
A
Laboratories
Advani Pleasure
Delta Corp
Hospitality
S (50.99%)
Cruise
Titagarh Steels and
Titagarh Wagons
Manufacturing
M
Biotec
Maya
Aptech
Media
A ($16.17mn)
Entertainment
SK Bangur Group Rama Newsprint
Media
S ($8.09,
18

16.84%)
ICL Financial
Services

Indo Zinc

Metals

S (61%)

ABG Shipyard

Great Offshore

Oil and Gas

S ($62.56mn,
15.23%)

Srei
Infrastructure
Finance

Quippo
Infrastructure

Real Estate and

Infrastructure

DLF

DLF-Liand O
Rourke

Real Estate and

Infrastructure
Real Estate and
Infrastructure
Retail
Telecom

McNally Bharat
Engineering
Spice Retail
Spice Mobiles

Buildmet
Global Access
Spice Televentures

S ($10.64mn,
100%)
A ($7.87mn)
A
M

M&A activity in India is back with a bang on back of mega Telecom

Industry deals involving Indian companies. According to figures
released by ASSOCHAM, Mergers &Acquisition deals valued at USD
USD 33.83 billion were executed during just the first quarter of
financial year 2010, a growth of about 257% over corresponding
quarter last year, which registered deals worth USD 9.49 billion (April
June 2009).

19

The Telecom Industry took the largest pie of M&A activity, accounting
for deals worth USD 22.73 billion,which represented 67.19 per cent
share in the total valuation of the M& A deals.
The other sectors like pharmaceutical, banking and finance, metal and
mining, energy, steel, cement, media and entertainment, aviation, real
estate, IT and ITES, consumer durables, and hospitality witnessed 57 M
& A deals pegged at USD 11.1 billion, contributing a total share of 32.81
per cent.
Mergers & Acquisition Deals in India for first financial quarter 2010

Sector

No. of Deals Value in USD million Share in per cent

Telecom

22732.26

67.19

Pharmaceutical

3958.29

11.02

BFSI

2651.54

7.84

Metal and Mining

1483.15

4.38

Energy

1320

3.90

Other sectors

39

1919.00

5.67

Highlights of M & A Activity

The number of M&A deals recorded an increase to 60 from 43 during
the corresponding period. The cross border outbound, domestic and
inbound M & A deals occupied a 48.55 per cent, 39.43 per cent and
12.02 per cent share with 28, 27 and 5 number of deals respectively.
The biggest M & A deal was done by Reliance Communication
which merged its telecom tower business with GTL infrastructure Ltd
for USD 11 billion. Among others, Bharti Airtel acquired Kuwait based
20

Zain telecoms African business for USD 10.7 billion. Reliance

Industries acquired Infotel broadband for USD 1 Billion.
The biggest deal in Pharmaceutical sector was the acquisition of the
generic drug unit of Piramal Healthcare by USA based drug maker
Abbot Laboratories (ABT) for USD 3720 million.
In the Banking, Financial Services and Insurance sector, biggest deal
was cut by Hinduja group, when it acquired Luxembourg based KBL
European private bankers SA for USD 1.69 billion.

21

IMPORTANT TERMS
(BANKING)
BPS
It is an acronym for basis point and is used to indicate changes in rate of
interest and other financial instruments. 1 basis point is equal to 0.01%.
So when we say that repo rate has been increased by 25 bps, it means
that the rate has been increased by 0.25%.
Bank Rate
Bank rate is the rate at which banks borrow money from the central
bank without any sale of securities. It is generally for a longer period of
time. This is similar to borrowing money from someone and paying
interest on that amount. Both these rates are determined by the central
bank of the country based on the demand and supply of money in the
economy.
Current bank rate 6%.
Repo Rate
Repo rate or repurchase rate is the rate at which banks borrow money
from the central bank (read RBI for India) for a short period by selling
their securities (financial assets) to the central bank with an agreement
to repurchase it at a future date at predetermined price. It is similar to
borrowing money from a money-lender by selling him something, and
later buying it back at a pre-fixed price.
Current repo rate- 6.5%

Reverse Repo Rate

Reverse Repo rate is the rate of interest at which the central bank
borrows funds from other banks for a short duration. The banks
deposit their short term excess funds with the central bank and earn
interest on it. Reverse Repo Rate is used by the central bank to absorb
liquidity from the economy.
22

Current Reverse Repo Rate- 5.5%

CRR (Cash Reserve Ratio)
Banks are required to maintain a percentage of their deposits as cash,
meaning that if you deposit Rs. 100/- in your bank, then bank cant use
the entire Rs. 100/- for lending or investment purpose. They have to
maintain a portion of the deposit as cash and can use only the remaining
amount for lending/investment. This minimum percentage which is
determined by the central bank is known as Cash Reserve Ratio.
Current CRR 6%
SLR (Statutory Liquidity Ratio)
Apart from keeping a portion of deposits with the RBI as cash, banks
are also required to maintain a minimum percentage of deposits with
them at the end of every business day, in the form of gold, cash,
government bonds or other approved securities. This minimum
percentage is called Statutory Liquidity Ratio.
Current SLR 24%

Intrinsic Value
The difference of the exercise price over the market price of the
underlying asset.

23

TRIVIA..
GETTING READY FOR. JOB INTERVIEW (literally!)

A job interview outfit is one of the most important fashion events you
will plan for. No matter how knowledgeable you are, first impression
always counts. Unprofessional dressing will never take you places.
Todays market is more competitive and fierce than ever. There is a
look that needs to accompany your fabulous skills and talents. Fail to
plan and plan to fail.
So, what should you wear to a job interview?
Think classic with a sprinkle of irresistible flavor. However, there is a
time and place for everything; especially when it comes to fashion. You
want to take the timeless interview fashion rules but mix your
personality into them. You dont want the company hiring a robot. You
want them to hire you for who you really are.
As a recruiter, they have a lot of faces to see. You want to stick out in
the employers mind out but not for the wrong reasons. A power suit
never goes out of style. However, how you style it does. You want to
walk in that room and own it. Your outfit should complement your
resume and say Yes, Im perfect for the job.

24

GIRLSHere goes the list

Job Interview Fashion Dos

Get your hair done. It looks best pulled back, (half way back but
not all down if its long).
Get a manicure or a fresh fill-in. Hands do a lot of talking!
Wear a tailored jacket to pull your look together. Its polished
and illustrates maturity.
Keep the color patterns neutral but dont lose your personality.
Dont forget shoes and a matching handbag. You need to look
pulled together. Nothing can mess this up more than a
mismatched handbag or horrible shoes.

Job Interview Fashion Donts

No leopard prints. You love animal prints but remember there is
a time and place. First, interview is not the place.
Dont go overboard with makeup.
No gaudy jewelry. Keep it simple and elegant.
No ghetto fabulous nails. Sorry, but no 3D Hello Kitty nails!
No fur. No studded shoes. No spikes. No metallic leggings. Get the
drift?
Biggest pet peeve of all: NO GUM!! EVER!

25

AND GENTLEMEN- Please pay attention

DOS

Get a pair of professional leather shoes, preferably black.

You should be well groomed.
Nails (yes boys, nails) should be trimmed.
Iron your dress and get them dry cleaned.

DONTS
Dont make the interviewer sick with your fragrance or cologne.
No uncomfortable clothes. Whats the point if you cannot even sit
comfortably.
No bright socks, so that the interviewer gets distracted because of
it.
No funky hairstyles. No studded shoes. No spikes.
A general piece of advice, never get dressed the day of the interview.
Try everything on a few days before and practice sitting, walking, and
even shaking hands. When you look good, you feel good and it radiates
into everything you say. Lastly, dont forget to practice for the interview
and give it all you got.

Inspired fromchicgalleria.com/2011/02/what-to-wear-the-job-interview/
http://www.coders2020.com/interview/what_wear_interview

26

Ace that interview!

This section has been included to give you some practical advice on
handling job interviews successfully. The job interview is a time for
interviewers to get to know you better. They have already decided that
you have the experience and knowledge that they require, that is why
they want to meet you in person. What they really want to see at the
interview is who you are. Your attitude and personality are going to be
the most important factors in the decision making process.
Preparing for job interviews :
Preparing for job interviews is probably the most important aspect. Do
this right and you will breeze through it, go unprepared and you will
fail miserably
Firstly do some research on the company and its products, know
who their customers are and what the company's objective is.
Once you have this information, then make a list of what skills or
knowledge you have that would be valuable to them. You cannot
sell yourself to them if you don't know what it is you are selling.
Work out what you need to take with you. A copy of your CV,
originals (and copies) of your qualification papers, copies of
references, samples of your work (if applicable) and anything else
that they may want to see. Again make sure everything is well
organized and neatly presented. Don't take a pile of paperwork
that you have to sift through for ten minutes to find something,
that will give them the impression that you are disorganized.
Interviewing Methods
Some of the processes that you might experience include:
Aptitude tests
IQ/Thinking tests.
General knowledge
Panel Job Interviews
One on one job interviews

27

Handling job interview questions:

There are various types of questions asked at a job interview. Most job
interviews start with chit-chat type of questions, these are designed to
break the ice and get the conversation flowing. Questions like "did it
take you long to get here", "did you find the place alright", "were you
able to find parking". Most of these just require a "yes, no problem"
type of response, you can elaborate more if you wish, however ensure
that you don't provide information that will give them a bad
impression. Saying something like "It took me ages to get here, traffic
was so bad, I hate travelling to this side of town.." would not make a
good impression. If this is the place where you would be working, they
would automatically be worried that you will be late to work everyday.
Most questions will be geared towards finding out a bit more about
you. They might be historical questions regarding your previous
employment or education, or they may be hypothetical questions "what
if...". These are geared to finding out how you would handle a situation
or to find out your personal views to certain areas.
Whenever answering a job interview question, give as much
information as you can. Tell them why, where, when and how. In other
words use samples to prove what you are saying. Make a statement,
then qualify it by giving a sample of a situation and how you handled it.
There are times that you will be asked a hard question during a job
interview. Don't panic, there is a reason why these questions are asked
and that is to see how you handle a difficult situation. Being prepared is
always the best policy.
ABOVE ALL, TRY AND KEEP CALM, SMILE AND SHOW
PROFESSIONALISM.
Source : http://engineers-international.com/15-2-15.php

28