THE BUSINESS CAPSULE

16th issue The Editorial Date 15th August 2011 By Md.Hafizul Haque
The whole world is expecting India to be the next super power. But are we really progressing towards this mark? Even today we are fighting with each other in the name of caste and colour.In the past 10 years 16 students from the backward class have committed suicide in elite institutes like IIMs, IITs and AIIMS. All these students had secured seats on the basis of the merit and not by the prevailing quota system. They were treated like untouchables and hence they decided to end their lives. Dont you think its time to move on and treat peoples on the basis of their merit and not on the basis of their caste and creed? When students from elite institutes behave like this then what can you expect from an illiterate.

NEWS FOR USE

By Devasish Roy , Jyotsna Nanda & Namita Katariya

Congress president recovers from an underground surgery. Congress President Sonia Gandhi went through a successful surgery in USA without disclosing anything even to the close party allies. It was kept a complete private affair with only four party members and family members knowing about the 64 year old presidents surgery. The information about the success of the surgery was conveyed by party spokesperson Mr. Janardhan Diwedi. He also informed that only Rahul Gandhi, Priyanka Vadra and Robert Vadra accompanied her for support.

Raju and 7 others accused in Satyam fiasco denied Bail. The apex court of Andhra Pradesh had denied bail to Ramalinga Raju and seven others involved in the Satyam fraud case which has been the biggest business fraud case ever happened. that the proceedings or the trial has been nearing completion ,the original date of the completion of the trial was July 31 so keeping that in mind the court has refused to grant a bail,the bail was asked mainly seeing the cooperation shown with the investigative agencies Also the bail was demanded on the basis of the appropriate behaviour of Raju and others but due to the way case is preceding, it was denied.

Andy Briant - From CEO to Vice-chairman. Intel Corp. On July 26 said that Andy Bryant, Intel's chief administrative officer, was elected to the new position of vice chairman of the board of directors in preparation for him to be elected the company's next chairman following Intel's annual stockholder meeting in May 2012. Bryant joined Intel in 1981 and served as the company's chief financial officer from 1994 to 2007. Bryant become the second Intel executive to serve on the company's current board, joining Intel President and CEO Paul Otellini.

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McAfee discloses biggest-ever series of cyber attacks. Cyber attacks and infiltration in networks of 72 organizations including UN, governments & companies around the world has been discovered. They have found series of cyber attacks and this involves infiltration of networks of more than 72 organisations that include United Nations, governments and large companies. Experts are also of the opinion that all these attacks have originated from the same country but declined to name it. But much evidence points towards China. The long list of victims in the five-year long campaign include the governments of the United States, Taiwan, India, South Korea, Vietnam and Canada; the Association of Southeast Asian Nations (ASEAN); the International Olympic Committee (IOC) etc.

Union Bank raises lending rates by 50 bps. After RBI raised its key rates by 50 base points as a measure to curb inflation, many commercial banks have followed suit. Union bank has revised its base rate, the minimum lending rate, by 50 basis points to 10.75 percent, effective from Monday. However, the bank has only increased the lending rate under the old BPLR (benchmark prime lending rate) scheme by 25 bps to 14.50 per cent.

Karnataka Finds its new Chief Minister Karnataka finally rose from the Yeddyurapa fiasco as the State of Gardens welcomed its new chief minister Mr Sadanand Gowda. "The stress would be more on effective implementation of the welfare programmes already launched by the BS Yeddyurappa government, than launching new programmes. ", he commented. He believes in transparency in the Government as any officer of the state can directly contact and tell him about his /her problems. He listed drinking water, roads, sanitation, housing a energy as his priority sectors.

Kraft foods to split into 2 units. It plans to split into two publically traded companies, one focussing on snacks business (like Oreo cookies, Trident gum and Cadbury chocolates) and the other on grocery business (that include Kraft cheese and Maxwell House coffee). According to its Chairman and CEO Irene Rosenfeld "Simply put, we have now reached a stage

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in our development with a global snacks and grocery business in North America in which each benefit from standing on their own and focusing on their unique drivers of success".

Wokhardt's nutrition business on sale. Wokhardt plans to sell its nutrition business to Danone. Drug major filed an application on Wednesday in the Bombay high court seeking approval for divestment of its nutrition business to Danone even as a clutch of investors expressed doubts over the completion of the deal. It is basically a move under its new debt restructuring scheme and thus company will receive the much needed cash to pay off its bondholders thereby reducing its debt. This will bring down its debt-equity ratio from 6 to 3. But the court approval will be necessary as the company defaulted on redemption of $110 million worth of bonds in October 2009.

NASA aims for the biggest planet NASA has launched a 2.7-billion km voyage to Jupiter. Its main aim is to study how our solar system was created, alongside studying the mysteries of the biggest planet of our solar system. The unmanned $1.1 billion Juno spacecraft took off from Cape Canaveral, Florida, at 11.25 am on Friday. The spacecraft will arrive at Jupiter in 2016. It will then study the planet's core, atmosphere, magnetic field and auroras. It is undoubtedly one of NASA's most ambitious missions till date.

ONGC to start production from KG basin in a month. After having some technical issues with the Australian contractor Cough Engineering (who quit the project ultimately), ONGC is all set to start production from the Kaveri Godavari basin, in a month and start pumping hydrocarbons from another block in the offshore region next May, top company officials said. It did alter its original plans of production from G1 and G15 blocks, which hold 21 million tonne oil and gas. "We were earlier planning to begin production from the GS 15 block in the KG basin by July-end , but now it might take another 2-3 weeks as we need to sort out some technical issues," said AK Hazarika , chairman ONGC. Hence the production is now going to commence by May 2012.

Senate passes US debt plan to avoid defaulting. After weeks of political battle and debate, both the Senate and House of Representatives, which voted Monday night, easily adopted the plan that raises the current $14.3 trillion cap on US borrowing, which expires at midnight. With less than 12 hours to go before the deadline, President Barack Obama promised to sign the measure immedi-

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ately. Keeping into calculation the increased borrowing limit, legislators approved more than $2 trillion of budget cuts over the coming decade. Bresnan Shines as Britain rules over India once again Although England had many match winners in their side queuing up to snatch the victory laps but the final punch came from the unexpected hero Tim Bresnan, who ripped through the Indian side by taking 5 wickets for 48 runs after delivering with the bat by adding 82 valuable runs with Stuart Broad at a run rate of 6.30 and conforming a lead of 2-0 for the hosts at Trent Bridge. It was a battering for the Indians at the hands of the hosts as England registered a massive victory margin of 319 runs which was the only time in test cricket history that such a huge victory was achieved after conceding a first innings lead.

Sharapova remains Unchallenged as the Costliest paid athlete for 7th lucky time. She may not have won grand slam, but the Russian tennis player , Maria Sharapova remains unchallenged as the world's highest paid woman in professional sports. She has again topped the list that is published by Forbes, and her earnings that are to the tune of $25 million are mostly accrued to off-court endorsements and are twice as much as her nearest rival, Denmark's Caroline Wozniacki, the current women's world number one player. American racing driver Danica Patrick is third with $12 million followed by tennis players Venus Williams, Belgium's Kim Clijsters and Serena Williams.

Tiger woods returns with a bang after a three month lay off "Im good to go," Tiger Woods commented on being asked about his return, claiming he had shaken off any rust from a three-month absence due to knee and Achilles tendon problems. His followers seem just as excited to see him back, with most wishing him good luck in the comments section of the website. Surely Woods will find some of their words inspirational as he returns this week to try salvaging a season on the brink of slipping away.

Copies of lokpal bill draft burned. The team of Anna hazare burnt the copies of draft of the lokpal bill rejecting the government version on lokpal bill There has been a difference over the lokpal bill between the government of India and Anna hazare. The major concerns of the discontent over the bill is keeping judiciary and Prime minister out of the lokpal bill initiative. Kapil sibal, Indian politician and a non-practicing lawyer,said that the team of Anna hazare could have present their views over the bill before the standing committee of parliament which has been after the bill now.

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There is a tug-off war ,Anna hazare is all set to go on hunger strike.Yoga guru, Baba ramdeo protest ended when the police forcefully cracked down on their camp

NTPC to invest Rs 1 lakh crore in mega hydro project. Mr. Arup Roy Choudhary, Chairman & Managing Director of NTPC limited ,is going to set up a 9500MW project in the Arunachal Pradesh As a part of its low carbon growth strategy power major NTPC is looking to invest about 1 lakh crore over a 10 year period to set up the countrys largest hydro power project. NTPC is considering number of measures to secure fuel supplies in the future including imports to tide over the shortfall in domestic supplies. The company is exploring the possibility of entering into 25 year coal import contracts as it seeks to secure fuel in supplies and hedge against price fluctuations.

Impact of US credit downgrading Due to downgrade of US economy by the S&P,the reaction was heavy across the world stock markets. The current economic crisis or equity meltdown is a serious threat for the most of the global economies The finance minister, Pranab Mukherjee , said that the downgrading of top-tier credit rating in US has created a grave situation. Investors had lost their confidence in the economy after standard & poor downgraded Us government AAA Sovereign credit rating. In 2008,the world witnessed the global slowdown and recession period in which the two economies Indian and China survived the blow.India Stock Market had seen a huge fall , the BSE sensex lost 387.31 points, while NSE lost 120.55 points

THE Business Icon

By Chandan Mishra & Ashwin Kumar

VINAYAK CHATTERJEE

FOUNDED-FEEDBACK VENTURES

VINAYAK,S father was a supervisor in jute producing firm, mother a professor in Calcutta university and a typical middle class family altogether no connection with business. After his economics from ST.STEPHENS COLLEGE he sat for cat and made his way to IIMA; but could understand its value only after his friends advice. Right from college he resigned his first job at ponds just within 2 weeks of joining. The journey back to home made him convince himself for PhD ; following the further course he met MR.RAUNAQ SINGH cm of APOLLO TYRES , who wanted VINVAYAK to bell the cat after APOLLO being nationalized. VINAYAK joined the RAUNAQ group at 22 . He says it was all about about a hectic schedule schedule, restructuring the firm but a satisfying job indeed. After 26, after getting his skills polished he began feedback ventures a market research firm with few of his friends; with a capital of rs.15000. After a suitable offer from his

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old employer feedback got transformed in a infrastructure firm, building factories etc. In 19991 when FDI was easy way feedback helped COCACOLA, GM, and others to set up their firms. Some where in 98-99 the company had build far higher overheads than its book records and was about to collapse. Shutting down some of the units people were said to leave; but friends and clients helped it from not being in history. The amazing thing was VINAYAKS sense of self awareness. The PONDS job did no way make him satisfied rather aroused his search for self security. It was this dream of VINAYAK that took him much ahead of what many possess on their visiting cards. VINAYAK says to all just do, follow what ones inner self says rather than marching in the vague blindly. One should never be confuse by ones peer`s pressure. His only advise was to follow the purpose and the means will follow, just dont worry about the fruits. It may take one 25 years to become an overnight wonder as MURTHY said.

The Business Quiz

1. The TATA Group consists of how many companies ? a) 80 b) 67 c) 110 d) 300

By Jakra Beg & Ankita Bhattacharjee

2. What's the term used to describe an employee who is not tied to one country or company but moves around ? a) Trackers b) Mobile worker c) Roamers at Work d) Big Boys 3. Who proposed the 'Equity theory' in 1960 ? a) Amartaya Sen b) K.C Johns c) J. Stacy Adams d) Adams Smith 4. Which internationally acclaimed Indian movie has been included as a case study for " Human Behaviour at work" by IIM,Indore ? a) Kal Ho Na Ho b) Lagaan c) Swadesh d) Mother India 5. Who developed the concept of 'Bureaucracy'? a) Max Weber b) J. Stacy Adams c) Roger Federer d) Philips Kotlar 6. Name the first Indian women CEO of a foreign Bank ? a) Tarini Vaidya b) Sejal Roy c) Rajashree Kapoor d) Sushma Rani 7. Who founded the famous Wall Street Journal ? a) Charles Dow and Edward Jones. b) Max Weber c) Charles Mechanize d) Kate Johnson 8. Name the marketing legend who first coined the word Privatisation in his book "the age of discontnuity"? a) Robert Albert b) Rohan Sharma c) Peter F. Drucker d) Adams Smith 9. Hisdustan Motor's Ambassador adopted it's model from which British car model ? a) Morris Oxford b) David Harward c) Phill Webler

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d) J.K Gomes 10. Big blue is IBM. Which corporate is referred as Big Black ? a) UPS b) PCU c) SPSS

Add On
Source India Today - R K Swamy BBDO Guide to Urban Markets Rank 1 2 3 4 5 6 7 8 9 10 Towns Chandigarh Panaji Delhi Valparai Greater Mumbai Pune Ludhiana Chennai Shimla Jalandhar States Chandigarh (UT) Goa Delhi Tamilnadu Maharashtra Maharashtra Punjab Tamilnadu Himachal Pradesh Punjab

By Aditya Panch

Per-Capita Annual Income in Rs. 26, 710 26,075 24, 141 23, 772 23, 109 22, 817 22, 178 21, 885 21, 348 21, 254

Editor in chief - Aditya Panch Sourceswww.yahoo.finance.com , www.rediff.business.com, www.wikipedia.com, www.indiabiznews.com,www.moneycontrol.com , The economics times, Business standard, The economist. Editorial Team-Aditya Panch, Devasish Roy, Chandan Mishra , Jakra beg, Saket Suman, Lionel Maain,Jyotsna Nanda , Md Hafizul , Megha Saxsena, Debadrita Kundu, Aditya Khalwadekar & Shreya Bhattacharya Under the guidance of: Prof Avinash Deshpande We welcome your feedback @ mitsobbcapsule@gmail.com

www.yahoo.finance.com , www.rediff.business.com, www.wikipedia.com,