15th OCT 2007

Volume 1, Issue 4

Wealth Incorporation - A CCIM Finance Club Initiative Presents

CHAANAKYA
Issue Attractions

..Tracking the Economy

"The sunshine of life is made up of very little beams that are bright all the time. To give up something, when giving up will prevent unhappiness; to yield, when persisting will chafe and fret others; to go a little around, rather than come against another; to take an ill look or a cross word quietly, rather than resent or return it -- these are the ways in which clouds and storms are kept off, and a pleasant and steady sunshine secured." - John Aikin

National Headlines International Headlines Article Quiz

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National Headlines
Anil Ambani group co. Reliance Energy(REL) announced that its subsidiary
Reliance Power would soon go public a move that is presumed to help it raise upto $3 billion( about Rs.12,000 crore)

ICICI Bank is leveraging its size and international clout to grab a big chunk of
private equity(PE) investments by launching a fund of funds (FOF)- the first by any domestic entity.

Inflation 3.26% , IIP 10.7 % Did you Know? There are over 9 million female-owned businesses in America, generating more than $2.3 trillion in annual revenue.

West Bengal has signed back to back agreements worth Rs. 31,000 crore for
two integrated steel projects with Videocon group and Jai Balaji Industries. This comes on the heels of JSW Steels Rs. 40,000 crore mega project

An auction based method may replace book building with the govt. aiming to
bring in more transparency and efficiency in the pricing of public offers. It seems Sebi might opt for a method similar to the dutch auction process used in the Google IPO.

SBI hopes to raise Rs.10,000 crore through the sale of govt. equity this fiscal,
despite a slowdown in credit growth. Did you Know? A mere 3% annual rise in prices will double the cost of everything within 24 years. At that time, youll need twice as much money as you do today to live as well as you do now Did you Know? Baht is the currency of Thailand, and also is a unit of gold measure equal to 15.244 grams.
Sensex continued to sore high reaching its peak of 18,000 points and above

International Headlines

China raises banking reserve ratio requirement to 13 per cent . Mobile phone giant Vodafone Group Plc has agreed to buy the Italian and Spanish businesses of Swedish telecoms group Tele2 AB for 775 million euro ($1.1 billion) OPEC oil exports, excluding Angola, will jump 670,000 barrels per day (bpd) in the four weeks to Oct. 27, marking the biggest rise so far this year ahead of peak winter demand Iran plans to sell natural gas to Syria from 2009, as the two nations that oppose the US policy in West Asia forge closer ties. Kenya has received an international award for reforms that have made it easier to do business in the country. The US will ask the World Trade Organization (WTO) to examine restrictions on the sale of US films, music, books, magazines and newspapers in China

Whenever there is a hard job to be done I assign it to a lazy man; he is sure to find an easy way of doing it. - Walter Chrysler

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Jai Corporation A Mystical Stock???

What will you do if a person comes to you and tells you that he will make your money grow 57 times in a year (5700% return)??? Youll surely call him mad; you think that its impossible. However a company named Jai Corporation has done this in a year. From Rs. 355 on 13 Oct 2006 the price has moved to Rs.20540 (1027*20) on Oct. 12 2007. Now how can a share price do that especially one with a circuit breaker of 5%? Jai Corporation Ltd. was incorporated in 1985 and started its business with manufacturing of steel, plastic and spinning yarn. However, now its business is well diversified in to new areas of infrastructural development, SEZ, real estate and venture capital. The financials of the company show a growth rate of 59% in its turnover however the net profit of the company has grown more than 9 times over the last one year. The company relies on its traditional businesses for operational stability and smooth cash flows and banks on its infrastructure business to capture the explosive growth of the economy, which also reflects in its segmental revenues where in the major portion of its revenue comes from its infrastructural projects. Currently the major projects that company is handling are development of Mumbai SEZ and Navi-Mumbai SEZ which it is developing in collaboration with Reliance Group. With its current expansion plans in progress it seems that the company still has much greener pastures ahead of it. This example clearly shows that there are adequate opportunities in the stock market to make big money, all it requires is the right stock selection.

Quiz
1. Which bank is promoted by 20th Century Finance Corporation and Keppel Tatlee Bank of Singapore in India? 2. He is the pioneer in mutual fund industry and often referred as the Father of Index Fund investing. He created the first S&P 500 Index fund. Identify this famous person? 3. Which financial services giant is referred as the "Thundering Herd"? 4. What do you call when a firm's actual bank balance is greater than the balance shown in the firm's book? 5.Which country's foreign market is known as 'Rembrandt Market'? (Answers will be published in the next issue) Answers to the previous issue 1. Mahindra & Mahindra 2. United Commercial Bank (UCO Bank) 3. Indian Telephone Industries (ITI) 4. GV Films 5. ASSOCHAM

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Contributors

Bhawna Kataruka Hardit Singh John Thomas Mathew A Thomas Sindhu B Navali