FinXpress Term of the week:

Depository Receipt

5

Markets this Week 6

News of the Week 7

CAN YOU SOLVE IT? 9

Company in Focus:

Hero Moto Corp Ltd.

3

JULY 15, 2012

Sources of Data:

> HDFCsecurities

> Economic

Times

> The Hindu

> Rediff Money

> MoneyCon-

trol.com

> Financial Express

> Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

imtgfinxpress.co.cc

Hello Dear Readers,

Greetings from FinNiche!

It gives us immense pleasure that, after a significant amount of time, we are once again back with our weekly edition

of FinXpress. Before we delve deeper as to what you can expect from this edition of ours, we would like to take this

opportunity to welcome the “PGDM Batch of IMT Ghaziabad, 2012-2014”. We are extremely elated by the fact that

now we would be having an entirely new set of readers following our editions. We believe that this is an opportunity

not only for you to explore our editions but an opportunity for FinXpress to learn, improve and grow based on your

suggestions, feedbacks and ideas.

It is our privilege to present “FinXpress” to the bright and young minds of IMT Ghaziabad.

Having greeted the new batch, it would be rather unfair not to welcome the current senior batch of IMT Ghaziabad

who has been following our editions consistently for the past one year. It feels great to be back together after a

rigorous yet overwhelming exposure to the Corporate Sector over a period of two months. Welcome once again,

“PGDM Batch of IMT Ghaziabad, 2011-2013”.

Focusing on what we are presenting you in this edition of ours, we have gone for certain changes in comparison to

our past editions. There has been a deliberate effort on our part to make the content more informative and exciting.

Something to look forward to in this edition of ours is the “Term of the Week” in place of “Startup in Focus”. It is an

extended version of our highly sought after “Word of the Day”. This is an effort to enhance the financial knowledge

of our students. In the “Markets” section, apart from charts on how the market has performed, don’t forget to take a

glance on our exchange rates, policy rates and reserve ratios. We are still proudly continuing with our “Company in

Focus”, “News of the Week” and “Quiz sections”. The company chosen was the highest gainer during the last

working day of previous week, “Hero Motocorp”. We have presented its key details such as PE ratios, EPS etc. to

understand how it is performing.

Well that is what we have in store for you in this edition of ours. Our only Endeavour is to present you knowledge in

the best possible manner. Enjoy reading!

Yours Sincerely,

The Editorial Board

“FinXpress”

Page 2 FinXpress

EDITORIAL

Hero Moto Corp Ltd., formerly Hero Honda Motors Ltd., is the world's largest manufacturer

of two - wheelers, based in India. In 2001, the company achieved the coveted position of

being the largest two-wheeler manufacturing company in India and also, the 'World No.1'

two-wheeler company in terms of unit volume sales in a calendar year and continues to

maintain that position. Hero Moto Corp offers wide range of two wheeler products that

include motorcycles and scooters, and has set the industry standards across all the market

segments.

Vision:

Hero Honda began with a simple vision - a mobile and an empowered India, powered by its bikes. Hero Moto Corp's

new identity reflects its commitment towards providing world class mobility solutions with renewed focus on

expanding company's footprint in the global arena.

Mission:

Hero Moto Corp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility,

setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The

company will provide an engaging environment for its people to perform to their true potential. It will continue its

focus on value creation and enduring relationships with its partners.

Advantages of Corporate sales:

• Single window processing for delivery at multiple locations

• No running around for documentation

• Attractive finance options

• Hero MotoCorp Passport - Unique CRM Program

• Bulk Incentive Schemes

Financial Information:

2010-11 performance of the company:

• Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

• Total net operating income of ` 19401.15 Crores, growth of 22.32 per cent

• Net profit after tax at ` 1927.90 Crores

• Total dividend of 5250% or ` 105 per share including Interin Dividend of ` 70 per share on face value of each

share of ` 2 each

• EBIDTA margin for the year 13.49 per cent

• EPS of ` 96.54

• Hero MotoCorp Ltd. is actively traded on the bourses and is included in the computation of the BSE-100, BSE-200,

BSE-500, S&P CNX Nifty and S&P CNX 500.

Page 3 FinXpress

Company in Focus : Hero Moto Corp Ltd.

Awards – 2011:

• CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new corporate entity" by CNBC

Awaaz Consumer Awards

• "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards

• Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero GoodLife

• "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing Award of Asia Order of

Merit for Hero GoodLife

• Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand" 2011 survey

Page 4 FinXpress

Company in Focus continued... Hero Moto Corp Ltd.

MARKET CAP (RS CR) 41,672.78

P/E 17.52

BOOK VALUE (RS) 267.13

DIV (%) 5250.00%

MARKET LOT 1

INDUSTRY P/E 15.38

EPS (TTM) 119.09

P/C 11.99

PRICE/BOOK 7.81

DIV YIELD.(%) 5.03%

FACE VALUE (RS) 2.00

A depository receipt is an instrument issued in one country, which represents ownership in a company of another country.

DRs allow investors to hold shares issued by a foreign, listed company, but traded locally on a stock exchange.

There are broadly four types of depository receipts:

1. American Depository Receipt (ADR): An ADR represents ownership in the shares of a non-

U.S. company, traded in the U.S. financial markets.

Infosys Technologies Ltd. was the first Indian company to list its share on the US Stock ex-

change. Its ADR are traded on NASDAQ.

2. Global Depository Receipt (GDR): A DR issued in more than one country, including the U.S.

Tata Steel GDR is listed on London Stock Exchange (LSE).

3. European Depository Receipt( EDR): A DR issued in the European market

Sterling Biotech Ltd DR are listed in Luxembourg Stock Exchange.

4. Indian Depository Receipt (IDR): DR issued in India, representing ownership of stocks of a foreign company.

Standard Chartered PLC is the only company that has issued an IDR.

How it works

A depositary receipt typically requires a company to meet a stock exchange’s specific rules before listing its stock for sale.

For example, a company must transfer shares to a brokerage house in its home country. Upon receipt, the brokerage uses

a custodian connected to the international stock exchange for selling the depositary receipts. This connection ensures that

the shares of stock actually exist and no manipulation occurs between the foreign company and the international broker-

age house.

Page 5 FinXpress

Term of the week : Depository Receipt

Page 6 FinXpress

Markets this week BSE Sensex

The market snapped a 5-week rally as weakness in global stocks triggered profit booking. Investors sentiment was also

hurt by IT major Infosys revising downwards both earnings & revenue growth guidance for FY13 in dollar terms after

reporting disappointing Q1 June 2012 results. The Sensex declined in 4 out of 5 trading sessions of the week that ended

on Friday, 13 July 2012. The BSE Sensex declined 307.4 points or 1.8% to 17,213.7. The BSE Mid-Cap index fell 1.1% and

the BSE Small Cap index fell 1.3%. Both these indices outperformed the Sensex.

NIFTY

The week saw the Nifty ending with losses after two weeks of gains. The week had in fact started on a positive note with

the Nifty clearing its recent highs of 5333. But selling pressure soon resumed and dragged the markets lower. W-o-W, the

Nifty lost 1.69%. Markets breadth was negative in four out of the five trading sessions of the week.

Indian Markets

• Prime Minister Dr. Manmohan Singh on Friday, 13 July 2012, approved the constitution of an Expert-committee on

anti-avoidance tax proposal viz. the General Anti-Avoidance Rules (GAAR) to undertake stakeholder consultations and

finalize the guidelines for GAAR.

• Car sales in India rose an annual 8.3% in June, the eighth straight monthly rise but below industry expectations as a hike

in excise tax has crimped demand. As per Society of Indian Automobile Manufacturers (SIAM), car sales for FY13 are

expected to rise by 9-11%, lower than the 10-12% growth it had forecast in April.

• Industrial production growth rate slowed to 2.4% in May, 2012 due to contraction in capital goods and mining output,

coupled with poor show by manufacturing sector, indicating persistent slowdown that may prompt RBI to cut lending

Interest rate. Growth in factory output, as measured by the IIP, was 6.2% in May 2011.

• As in May, both merchandise exports and imports contracted in June, implying low demand abroad as well as within

India, with possibly adverse repercussions for larger economic growth. While exports fell 5.5% to $25.1 bn over a year,

imports were down a staggering 13.5%, the biggest decline in 32 months, to $35.4 bn.

Exchange Rates Value % Chg Policy Rates (as on July 14,2012) Reserve Ratios (as on July 14,2012)

SENSEX NIFTY

Page 7 FinXpress

News of the Week

Government reaffirms

its stand on Vodafone

The Inter Ministerial Group

formed by the government in

response to the arbitration

notice sent by Vodafone under

the India-Netherlands bilateral

i n v e s t m e n t p r o t e c t i o n

agreement (BIPA) rejected to

consider Vodafone Groups’ plea

to not apply retrospective tax

amendments to its case.

Earlier in the year, the

government in after its defeat in

the Supreme Court had proposed

to introduce an amendment

(clarification according to the

government) to section 9 of the

Income Tax Act, 1961

retrospectively from April 1,

1961.

Following amendment to the

I n c o m e - T a x A c t w i t h

retrospective effect, Vodafone

may be asked to pay `.20,000

crore tax, interest and penalty

for its 2007 acquisition despite

winning the tax case in the

Supreme Court.

Additional Information

Section 9 of the Income Tax,

1961 before the clarification

read as follows

All income accruing or arising,

whether directly or indirectly,

through or from any business

connection in India, or through

or from any property in India, or

through or from any asset or

source of income in India, or

through the transfer of a capital

asset situate in India.. The

Finance Bill of 2012 introduced

the following two clarifications

which are to be read with the

above clause

(i) That when it says through, it

means by means of or in

consequence of or by reason of

the transfer of a capital asset

situated in India;

(ii) A capital asset has always

been meant to be situated in

India when a foreign company

transfers its shares and the

shares derive their value

substantially and directly or

indirectly from assets located in

India.

Samsung wins British

suit against Apple

Samsung, the South Korean

giant, won a patent battle on

Monday against its U.S rival

Apple. The judge, through his

decision ruled that Samsung’s

Galaxy Tablet was not cool

enough to be confused with

Apple’s iPad.

“They do not have the same

understated and extreme

simplicity which is possessed by

the Apple design,” Judge Colin

Birss said in his ruling. “They are

not as cool.”

The iPad holds around 65 per

cent of the global tablet com-

puter market, with the Samsung

Galaxy making up around 6 per

cent of global sales. Apple and

Samsung are engaged in a slew

of patent suits against each other

i

n international courts, with both

companies vying for a bigger

stake of the smart phone and

tablet markets.

A U.S. appeals court, on Friday,

rejected Samsung’s bid to over-

turn a ban on U.S. sales of its

Galaxy Nexus smart phones.

Trade Deficit declines

but due slowing

imports!!

Trade deficit has declined to a 15

-month low largely due to a

sharp decline in imports. Exports

fell 5.5 per cent in June from a

year ago to $25.1 billion, data

released by the government

showed, as demand slowed

down in Europe and the US.

Imports dropped 13.5 per cent to

$35.3 billion, yielding a much

lower trade deficit of $10.3

billion in June against $16.3

billion in May. Imports dropped

13.5 per cent to $35.3 billion,

yielding a much lower trade

deficit of $10.3 billion in June

against $16.3 billion in May.

Imports declined largely because

of softer crude prices and

moderation in gold purchases, as

depreciated rupee made imports

expensive.

The news of a narrower trade

deficit provided a much needed

relief to the falling rupee which

closed at 55.14/55.15 on Friday.

profit of ` 118.23 crore. How-

ever, its total income in-

creased to ` 3,939.16 crore for

the quarter as against ` 3,473.38

crore recorded during the same

quarter of the previous year.

PM sets up a

4-member committee

to finalize GAAR

guidelines

A new panel headed by taxation

expert Parthasarathi Shome, the

head of ICRIER (Indian Council for

Research on International Eco-

nomic Relations) and a former

adviser to the finance minister

during P Chidambaram’s tenure

between 2004 and 2008, will

draft fresh GAAR guidelines and

prepare a road map for its imple-

mentation to be submitted to

the government by September

30.

The general anti-avoidance rules

(GAAR), first introduced in the

budget in March this year, target

firms and investors routing in-

vestments through tax havens.

But a lack of clarity on GAAR's

implementation has panicked

foreign investors, heightening

their wariness about investing in

India as they fear new tax rules

could be misused.

Additional Information

General Anti-avoidance Rule

(GAAR) is a concept which gener-

ally empowers the Revenue Au-

thorities in a country to deny the

tax benefits of transactions or

arrangements which do not have

any commercial substance or

consideration other than achiev-

ing the tax benefit. Denial of tax

benefits by the Revenue Authori-

ties in different countries, often

by disregarding the form of the

transaction, has been a matter of

conflict between the Revenue

Page 8 FinXpress

News of the Week continued.. .

Authorities and the taxpayers.

Government initiates

probe into dumping of

a chemical by China

India has initiated a probe into

alleged dumping of a chemical,

mainly used in photography and

medical applications, by China

following complaints by domestic

players.

The Commerce Ministry's desig-

nated authority, the Directorate

General of Anti-Dumping and

Allied Duties (DGAD), has started

an investigation into alleged

dumping of 'Meta Phenylene

Diamine' ( MPDA).

In a notification, the DGAD said

that it has sufficient evidence of

dumping of the product from

China "to justify initiation of an

anti-dumping investigation. The

period of investigation is from

October to December 2011.

However, for the purpose of ana-

lysing injury, the data of previous

three years of 2008-2009, 2009-

2010 and 2010-2011 would also

be considered, it said.

After completion of the probe,

the commerce ministry would

recommend the duty and the

finance ministry would impose

the restrictive duty.

GST in rough weather

again, implementation

by 2013 unlikely

The rollout of the United Pro-

gressive Alliance government's

ambitious indirect tax reform

seems to have run into rough

weather with state finance minis-

ters raising doubts over country's

preparedness to implement the

much delayed goods and services

tax (GST) from next year. "There

are lots of issues which have not

been resolved in GST.... we are

nowhere near IT infrastructure

which has to be in place, it is

important for implementation of

successful GST" Gujarat minister

of state for finance Saurabh Patel

said after the meeting of em-

powered committee of state

finance ministers in Delhi on Fri-

day.

The goods and services tax,

which will replace most of the

indirect taxes with one single

levy, was to originally rollout

from April 1, 2010 but has been

delayed because of the opposi-

tion from states.

Trade deficit at 15

month low

India's exports dropped for sec-

ond month running in June, but

the decline in imports was even

sharper, bringing down the trade

deficit to a 15-month low, raising

the hope that the high current

account deficit that has triggered

depreciation of the rupee will

decline this year.

Exports fell 5.5 per cent in June

from a year ago to $25.1 billion,

data released by the government

showed, as demand slowed

down in Europe and the US.

Imports dropped 13.5 per cent to

$35.3 billion, yielding a much

lower trade deficit of $10.3 bil-

lion in June against $16.3 billion

in May. The government painted

a grim picture of the future, but

hoped the incentives announced

in June will encourage exports.

The outlook for global demand

for goods continues to be dis-

couraging as major markets in

Europe, the US, China and Japan

are in the grip of uncertainty,

commerce secretary S R Rao said

on Friday announcing numbers.

Cartoons

Solve it Now!

We are on the web !

http://www.facebook.com/FinNiche

http://www.imtgfinxpress.co.cc

Page 9

**Rush in your entries

t o :

Set A

Match the following: 1)Phiroze Jeejebhoy a)First RBI Governor

2)Kothari Pioneers b)First Finance Minister

3)RK Shanmukham Chetty c)BRICS

4)Sir Osbourne Smith d)Bombay Stock Exchange

5)Jim O’ Neill e)First Private Mutual Fund

Set C

Question of the week:

Can you name the only 4 OEM's who manufacture both

Cars and Bikes?

CAN YOU SOLVE IT ?

Set B

Brain-teasers !!

Q. Which is India’s first private port?

Q. For a long time the Union Budget was announced at

5 pm on the last working day of February, a practice

inherited from the Colonial Era. In which year was it

changed to 11 am?

Q. Which businessman has given his CEOs only two rules

to follow:

a. Do not lose any of your

shareholders money

Feel free to write to us at : Drop in your suggestions to the editorial team :

finniche.imt@gmail.com Magazine design/news : ameybadkar@hotmail.com

Articles/quiz : debjyoti.chanda89@gmail.com

n international courts, with both

companies vying for a bigger

Page 10 FinXpress

Amul hits of the week

Tribute to wrestler & veteran actor Dara Singh

Cover of the latest edition of Time magazine

Roger Federer wins his 7th Wimbledon title

Source : Amul