27

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January 2010 Issue 18
GLOBAL MANAGEMENT PROGRAM

SENSEX

Citibank fraud: CFO of Hero Group questioned
The Hero Group acknowledged that it invested close to 29 crores in schemes suggested by Shivraj
Puri, the Citibank executive who is believed to have pulled off a 300-core scam at the Gurgaon
branch of the bank. However, the group clarified that its flagship company, Hero Honda Motors,
had not been impacted by the scam. Puri was arrested yesterday. He was the Relationship Manager
at Citibank in Gurgaon. Click here



Police interrogates Sanjay Gupta on Citi fraud
Sanjay Gupta has been interrogated by the Gurgaon police in connection with the Citibank fraud fixed deposit scam.
There is still a cloud that hangs over Sanjay Guptas involvement; Gupta allegedly owns the key firm that was involved in
fraudulent deals. Citibank had tried to settle the matter internally for few months but it finally went to the Gurgaon
Police as its only last resort. Citi filed an FIR against one of its employees - Shivraj Puri one of its Gurgaon branch
employee who has allegedly siphoned off money from various HNI clients. Puri finally surrendered in the court and police.
Click here



SBI may extend teaser loan scheme till March

India's largest lender and public sector undertaking State Bank of India (SBI) is likely to extend its
teaser home loan scheme till March 2011. Sources add that interest rates will be increased on teaser
home loans. However, interest rates will be steady for first two years. Click here



Patni finalises term sheet to sell 61% to iGate

The deal to acquire controlling stake in Patni is in its final lap. Patnis promoters and General Atlantic
have finalised the term sheet to sell about 61% stake to iGate. However the price that iGate will pay
to the Patni family and General Atlantic may differ. iGate is the front runner to acquire controlling
stake in Patni. Sources had told earlier that the Patni board had met once and given a conditional nod
to iGates bid. iGate is to submit a detailed strategy report to the Patni board sometime early next
week. Click here
19,800.00
20,000.00
20,200.00
20,400.00
20,600.00
27/12/10 28/12/10 29/12/10 30/12/10 31/12/10 1/1/2011
Date Open High Low Close Price/
Earnings
Price/
Bookvalue
Dividend
Yield

27/12/10 20,062.60 20,190.13 20,010.33 20,028.93 23.06 3.76 1.04
28/12/10 20,056.47 20,090.41 19,981.76 20,025.42 23.05 3.76 1.04
29/12/10 20,060.88 20,274.20 20,054.64 20,256.03 23.3 3.8 1.03
30/12/10 20,274.12 20,410.91 20,274.12 20,389.07 23.44 3.82 1.03
31/12/10 20,412.76 20,552.03 20,412.76 20,509.09 23.56 3.84 1.02
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January 2010 Issue 18
GLOBAL MANAGEMENT PROGRAM

Govt to slap 60% sugar import tax from Jan 1
India will slap a 60% import tax on sugar from January 1, a government source said on Friday. India,
the world's top consumer of sugar, had dropped 60% import tax in early 2009 to overcome an acute
domestic supply shortage, triggered by the worst drought in four decades. The duty free notification
lapses on December 31 and from January 1 it automatically reverts back to the old duty structure.
Click here


Soaring metal prices ring death knell for 25p coins
The ubiquitous 25 paise coin will be history in six months time. Worried by the soaring
metal prices, the government has decided to scrap all coins up to the denomination of
25 paise from June 30, 2011, making 50 paise the minimum denomination accepted in
markets. The move will have a major effect on all financial transactions as the pricing
of many day to day products and services, entries in the books of accounts as well as
taxes and levies will have to be revised and rounded off to either 50 paise or a whole
rupee. Click here

India, Iran discuss oil payments in shadow of geopolitics
The Reserve Bank of India said last week that oil trade payments to Iran could no longer be settled
using a long-standing clearinghouse system run by the central banks, and Tehran has refused to sell oil
outside the old set-up. This week the RBI extended the move to apply to all current account
transactions. The White House, which wants governments to stop dealings with Iran because of its
nuclear programme, has praised the move, which came less than two months after President Barack
Obama's trip to India, where he pledged to help boost New Delhi's global role. UN sanctions on Iran
do not cover oil sales. Click here

Sahara India Buys Prime London Hotel for Rs 3,300Cr

Diversified group Sahara India said on Thursday its unit Aamby Valley has purchased London's
Grosvenor House hotel from the Royal Bank of Scotland for 470 million pounds (approx Rs 3,300
crore). Grosvenor House, with 420 rooms, 74 suites and 27 meeting rooms is located in the upscale
Park Lane in London and is currently managed by Marriott International. The hotel would now be
jointly run by Sahara and Marriott, Sahara said. Sahara currently operates the Sahara Star hotel in
Mumbai and owns the Aamby Valley Township.Click here


SBI says to raise up to $2.2 bn via tier II bonds

State Bank Of India says its board has approved raising Rs 10,000 crore via tier II bonds. The bank will raise the funds in
FY11 ad FY12. They also said they will raise up to Rs 2,000 crore of these funds via retail bonds by next fiscal.
Click here
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January 2010 Issue 18
GLOBAL MANAGEMENT PROGRAM
Jargon mania
Competency mapping::
Competency mapping is a process through which one assesses and determines ones strengths as an individual worker and
in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient
(EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Large organizations
frequently employ some form of competency mapping to understand how to most effectively employ the competencies of
strengths of workers. They may also use competency mapping to analyze the combination of strengths in different
workers to produce the most effective teams and the highest quality work.


Amortization::
Amortization (or amortisation) is the process of decreasing or accounting for, an amount over a period. It means::
1.The paying off of debt in regular installments over a period of time.
2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this
method measures the consumption of the value of intangible assets, such as a patent or a copyright.

When used in the context of a home purchase, amortization is the process by which your loan principal decreases over
the life of your loan. With each mortgage payment that you make, a portion of your payment is applied towards reducing
your principal and another portion of your payment is applied towards paying the interest on the loan. An Amortization
table shows this ratio of principal and interest and demonstrates how your loan's principal amount decreases over time.
While amortization and depreciation are often used interchangeably, technically this is an incorrect practice because
amortization refers to intangible assets and depreciation refers to tangible assets.


Attrition::
The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is
natural in any business and industry. This type of reduction in staff is one way a company can decrease labour costs: the
company simply waits for its employees to leave and freezes hiring. Such a method contrasts the more severe labour-
reduction techniques, such as mass layoffs. Waiting for attrition is usually better for company morale.


Retrenchment::
Retrenchment is something akin to downsizing. When a company or government goes through retrenchment, it reduces
outgoing money or expenditures or redirects focus in an attempt to become more financially solvent. Many companies that
are being pressured by stockholders or have had flagging profit reports may resort to retrenchment to shore up their
operations and make them more profitable. Although retrenchment is most often used in countries throughout the world
to refer to layoffs, it can also label the more general tactic of cutting back and downsizing.
Companies can employ this tactic in two different ways. One way is to slash expenditures by laying off employees, closing
superfluous offices or branches, reducing benefits such as medical coverage or retirement plans, freezing hiring or
salaries, or even cutting salaries. The second way in which a company may practice retrenchment is to downsize in one
market that is proving unprofitable and build up the company in a more profitable market



27
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January 2010 Issue 18
GLOBAL MANAGEMENT PROGRAM

INDIRA LIVE!!

In this weeks Indira Live we have an interview with our very own ISBS Student President Mr. Manish Bhute. He
shared details and tips about his placement procedure, his job and how to stay focused in the hectic life of ISBS!!

1) Where you have got placed and when?

I have got placed in Atlas Copco (I) Ltd, Mumbai Region

2) What is Job Profile?

My job profile is Air Compressors Sales for Oil Free Air Division.

3) Please share about the type of questions and challenges you faced in placement GD & PI?

Well I did Summer Internship with Atlas Copco itself and after seeing my work Atlas Copco offered me a PPO. So I
didnt need to go through placement procedures.

4) Share about the type of question and challenges you faced in placement interview?
My interview was taken by the Marketing Manager, Business Line Manager,HR Manager and General Manager of the
Atlas Copco.
Interviewer asked the following questions-
1. Tell us about yourself
2. What is your summers experience with Atlas Copco?
3. What is your learnings from SIP?
5. What is the key learnings from the field with respect to the customers?
6. What is a Sales Process?
7. What is the difference between Sales and Marketing?

5) How important is SIP's?

I did my SIP from Atlas Copco, after joining the organisation I liked the work culture and I realized I want to work
here only.
It teaches you how a customer reacts, customer behavior. Also it a first step ahead for everyone to face the real
world and interact with the customers.
It is very important to develop good communication skills and knowledge. These two things set you apart from other
people. It is important to have a very positive attitude towards your work.
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6) Do's & Donts for juniors regarding academic as well as for placement point of view?

It is very important to be focused on your goals and your life. If you are not focused, you are creating problems for
yourself. You must identify and decide what you want to do and achieve.

If you want to take job in a marketing side, you must decide what sector you want to get into. Be it FMCG, Retail,
Telecom or be it Engineering you must decide what you want to do. Increase your core management knowledge and
work on general knowledge too.


7) Major factors contributing for your placement?

I was never a bookish kind of a guy. I was believed in practical knowledge. I always wanted to work around outside
classrooms because it teaches you a lot. It is very important to have outside exposure. I also think how can I do a
same job with different techniques or differently because it gives a better vision. Balance is very important with right
kind of attitude.

Also your soft skills are very important. It is very important to have good people skills and good interpersonal skills. It
is also very vital to be a good team player. All these factors play very important role.


8) Share your two years of experience at ISBS?

It has been a nice learning experience for me. All the professors and mentors have been very supportive. I would like
to especially thank to Pravin sir, Amol sir, Bidyut sir, Nutan Maam, Smriti maam, Renu Maam, Kumen sir ,Manmohan sir
and Sabeena maam who were always there whenever I needed them and supported me very much. It was a wonderful
experience working with them.
I became Mr Fundoo just because of the support of my batch mates and the whole teaching staff of ISBS.
Being a President of ISBS I thank all my batch mates who were always there in my ups and down who supported me in
my decisions and were always there whenever I needed them. They always corrected me whenever I took wrong
decisions.
I thank all of you and wish you all the happiness and success. Cheers!!!