Management Board
: SHRI K L GUPTA (CHAIRMAN) SHRI B L GUPTA(VICE-CHAIRMAN) SHRI GAURAV GUPTA SHRI DEEPAK GUPTA
EDITOR-IN-Chief
: Dr ANSHUL SHARMA
EDITOR-IN-Charge
: MR.VIVEK SRIVASTAVA
Faculty Support
: DR HIMANSHU MITTAL, MR.PRASHANT DEV YADAV MS NEHA SHARMA
Circulation –In –Charge
: Mr SAMEER DWIVEDI
Administrative Support
: DR OM PRAKASH SHARMA
Student support
: MR RAXIT JOSHI MR KAMLESH JOSHI
Being the Editor In chief of the GNIOT College of Management, E magazine it gives me great pleasure to bring to you this issue. It was quite inspiring to watch and witness the potential of our students unfolding at various stages and situations each day. It is designed to present to its readers the various events, methods and applications related with new developments and perspectives in the field of management and business. With a sense of pride and satisfaction I would like to say that with the active support of the management, faculty and students, this magazine has come alive. With all the efforts and contributions put in by the students, I hope the magazine will bring creative talents of the students of the institute. Congratulations to the editorial team for their determined efforts in bringing out this magazine.
Dr.Anshul Sharma (Editor –In –Chief)
Dear Readers, I feel privileged in presenting the third issue of our institute e- magazine. I would like to place on record my gratitude and heartfelt thanks to all those who have contributed to make this effort a success. My special thanks are to Dr.Anshul Sharma, Director- for his guidance which enabling me to bring out this volume-5. It is my moral duty to thank him for giving support and encouragement and a free hand in this endeavor. The magazine also showcases the talents of our faculty members and students. With a sense of pride and satisfaction I would like to say that with the active support of the management, faculty and students, e –magazine has come alive .With all the efforts and contributions put in by the students, I truly hope that the pages that follow will make some interesting reading. Last but not the least I am thankful to all the authors who have send their articles and readers who made this magazine so popular. VIVEK SRIVASTAVA EDITOR-IN-CHARGE
NAME :- RAXIT JOSHI ID :- 141001
Tata wins RBI approval to buy DoCoMo stake in JV
Reserve Bank of India has allowed conglomerate Tata Sons to buy Japanese telecom firm NTT DoCoMo Inc’s stake in their struggling Indian venture, paving the way for the completion of the long-delayed $1.1 billion deal. In a memo to the finance ministry seen by Reuters, the Reserve Bank of India (RBI) said it was "inclined to accept" the proposal from Tata to buy DoCoMo's stake of around 26 per cent in Tata Teleservices Ltd at half the price DoCoMo originally paid for the investment. The RBI has requested for the finance ministry's view. The RBI approval, also confirmed by a source directly involved in the process, is part of the government's bid to simplify and scrap some of the more obscure rules that have curbed foreign investment. A rule change brought in last year prevented foreign investors from selling stakes in Indian firms at a pre-determined price. The larger issue here is of a fair commitment in the contracts in relation to an investment and a downside protection of an investment, rather than assured return," the central bank said in the memo."Besides, our strategic relationship with Japan in recent times in relation to FDI (foreign direct investment) flows is also a matter to be kept in view.
Under the original deal signed in 2009, when DoCoMo invested $2.2 billion in the mobile carrier, in the event of an exit it would get the higher of either half the original investment or a fair value. Tata Sons told the central bank in November that it had been unable to find a buyer for the DoCoMo stake, and sought the regulator's approval to purchase the stake itself at 58.045 rupees per share - half the price DoCoMo had paid in 2009. Price water house & Co LLP, engaged by Tata Sons, had determined the fair value of the shares at 23.34 rupees a share. A senior policymaker directly involved in the approval process said the central bank would keep reviewing rules that make it hard for foreign firms to recover their investments, and hold back outside investors.
NAME :-KAMLESH JOSHI I.D. 1410040
Flipkart Plans a Year-Long Party
A fortnight after raising $700 million, Flip kart has drawn up an ambitious strategy for the year ahead, including snagging the next round of funding at a valuation of $15 billion (95,000 crores) and selling goods worth $5 billion by March 2016. India's largest online retailer, which raised nearly $2 billion last year alone, will also begin discussions about a US listing while scouting to buy technologyfocussed start ups. An IPO is imminent, but a call is likely to be taken only towards the end of the year. Flip kart is now valued at $11.25 billion and expects to sell goods worth $3 billion by the end of the financial year in March 2015. With Amazon set to compete aggressively with an investment of $2 billion in India and Snap deal raising nearly $1 billion from Japan's Softbank and others, Flip kart believes it has a real fight on its hands when it comes retaining its leadership in the online retail market. The market is projected by Nomura to be worth $23 billion by 2019.The India unit of the Seattle based online retailer is fast becoming
a dominant player: The Company, with eight warehouses, now boasts of 18,000 registered sellers and ships goods to over 17,000 pin codes in the country. It's done this in little less than 18 months since starting operations in the country. Flip kart, with 4,000 sellers, has close to 13 warehouses and ships goods to 300 cities.Flip kart did not reply to an email seeking its views. NAME: - PINTU KUMAR PAL
ID: - 1410020
India's fundamentals best among BRICS nations
Reserve Bank of India governor Dr Raghuram Rajan has reduced interest rates by 25 basis points bringing repo rates to 7.75%. Easing inflationary pressure prompted the governor to cut rates. Equity markets responded strongly to the news by moving almost 2.5% higher. There is little doubt that lower interest rates will push up consumer demand and revive the economy. But since Indian equity markets along with other emerging markets are all fighting to attract the same foreign funds, it is worthwhile to compare the fundamentals of these countries to get an idea of where India stands within the emerging market space. On broad economic parameters, we take a look at BRICS nations. Brazil: Brazil is barely growing. The country’s central bank expects the country to grow by 0.2% lower than its earlier estimate of 0.7%. The country’s newly elected government has its job cut out in controlling inflation which is at the upper end of its comfort zone. Brazil has posted an inflation of 6.41%, against an upper limit ceiling set by its central bank of 6.5%. In order to control inflation, its central bank for the first time since 2003 raised its base rate to 11.75%. Industrial growth rate is in the negative territory. Dependence on commodities, all of which are in a down cycle, has led to a sluggish growth in the country. Russia: World Bank has downgraded Russia’s economy on account of a sharp fall in oil prices. Russia’s GDP is expected to contract by 2.9% against the earlier forecast of 0.7% contraction. Furthermore, the country is barely expected to touch a positive figure in 2016 with a GDP growth of 0.1%. Russian government in order
to prevent outflow of foreign currency sharply increase interest rates to 17%, increasing it by 6.5%, this highest since its crisis in 1998. Russian Ministry of Economic Development said that its inflation rate, which is at 11.4%, is expected to shoot up to 15-17 by March end. India: Indian economy is back on track with the World Bank expecting the country to post a 6.4% growth in 2015. In fact World Bank has said that India will catch up with China’s growth rate over the next two years. Retail inflation rate is below the 6% comfort level mark of the central bank with the latest print coming out as five%. This has prompted the RBI to cut interest rate to 7.75%. China: China is going through, what the World Bank defines as ‘managed slowing’. After growing at more than 10% for a decade and contributing significantly to global growth, China’s growth has slowed down to 7%. The declining slope is expected to continue with the country expected to grow at 6.5% this year according to UBS. According to Jeffrey Kleintop, chief global investment strategist at Charles Schwab, China’s growth will go down to 5% and below over the coming decade. Lack of demand is also visible in China’s inflation which is at a five year low of 1.5%. The People’s Bank of China had cut interest rates in November by 40 basis points to 5.6%. South Africa: Inflation in South Africa is on a downward path but slump in commodity markets has affected growth rates in the country. South Africa’s inflation has come down from 6.6% in mid of 2014 to 5.8% towards the end. The country has marginally escaped recession after posting a positive growth in the March quarter. Morgan Stanley has downgraded the country’s growth forecast to 1.3% from 1.8% earlier. In 2016 the country is expected to grow at 2.5% as per the research outfit. In order to curb inflation South Africa’s central bank increased interest rates to 5.75% from 5.5% in mid of 2014. Among the BRICS nations India is the only country with the strongest fundamentals and a positive growth outlook from World Bank.
Name: - MD. FAIZY ID.: 1410034
Samsung India Electronics launched of Tizen-powered Smartphone
Korean technology giant Samsung on Wednesday launched the first phone powered by Tizen operating system in India – Samsung Z1. The device is priced at Rs. 5,700.With the new Tizen Platform, Samsung India Electronics President and CEO Hyun Chil Hong said Z1 will deliver a faster boot time and quick access to apps, along with enhanced web performance with decreased data usage. The new OS will help Samsung reduce its reliance on Google’s Android operating system, which powers most of its smart phones and tablets. Previously, Samsung tried its luck with ‘Bada’ OS too, which did not see much success. The Smartphone market in India is rapidly evolving, with many consumers using their device as their screen of choice for content including videos, television programs and video games, as well as a range of apps. Samsung Z1 has been customised to meet entertainment-focused needs of local Indian consumers for a personal and reliable mobile experience. The dual SIM device is powered by a 1.2GHz dual-core processor, 768 MB RAM and 4GB internal memory expandable up to 64GB. It features four-inch display, 3.1 MP rears and a VGA front camera and 1,500 mAh batteries. Samsung has tied-up with Reliance Communications and Aircel to offer up to 500MB of 3G data free every month over 6 months. Name:- SHUBHAM JOSHI ID – 1410009
Samsung’s slimmest smart phones
Samsung India Electronics has launched four new mid-segment smart phones in the price range of Rs.19, 300 and Rs.25, 500. These phones include A5, A3, E7 and E5 of the Galaxy range. Galaxy A5 and A3 are Samsung’s slimmest smart phones. India is the first country for the launch of Galaxy E7 and E5. These dualsim smart phones offer a superior viewing and best selfies experience, according to company officials. Galaxy A and Galaxy E smart phones come in a variety of screen sizes, assorted colours and features. We are confident that the launch of these new devices will further expand our presence in the mid-segment of mobile phones market in India. We have selected India as the first country to launch Galaxy E7 and E5 smart phones globally. We are focused on redefining the concept of offering revolutionary devices and expand our leadership position within the smart phone market. Galaxy A5 is priced at Rs.25, 500, while A3 is available at Rs.20, 500. As part of the introductory offer, Airtel will provide special double data plans on A3 and A5 for up to six months on its networks. Galaxy E7 and E5 are priced at Rs.23, 000 and Rs.19, 300, respectively. E7 is available in white, black and blue colours, while E5 is available in white, black and brown colour.E7 and E5 have a slim and compact design that is 7.3mm thin. As part of its introductory offer, Vodafone will provide up to 2GB of 3G data a month for two months on its network. NAME :- AAYUSH I.D NO. 1410005
Direct launches international calling mobile app Ringo in India It has already been launched in 16 countries, and now 'Ringo', an international calling application, makes its India debut. While launching it in the country, Bhavin Turakhia, founder and CEO of Direct, an Internet products and services company, claims that Ringo will help make international calls cheaper and that too without using the Internet. Well, mostly. In India, conventionally, when you talk about international calling, you're dividing yourself into two buckets, talking about having either purely Wi-Fi and data apps like Skype and Viber, where the other person also needs Skype/Viber and needs to be online, or the carrier, which is reliable and works all the time, but is also very expensive. There is no app in the middle which allows low-cost international calling without using the Internet. Ringo will use the Internet to make a request for the call. Turakhia says the app will not use the Internet for the call, but will be similar to calling through a carrier, and will compete with the likes of Skype as well as regular telecom carriers. To offer the service, Turakhia has partnerships with global telcos either directly, or through an aggregator. On the delay in launching the app in India, Turakhia says: "The regular call flow available in the US and the UK is not entirely available in India because of the regulatory and partnership concerns in the manner that it operates. To design this call flow took us a little time in India and that's the only way we could have launched in India." With Ringo, the consumers will be able to see the rates per minute for every call they make. "We're trying to bring in a level of transparency," says Turakhia, adding that calls through the app will be 70 to 80 per cent cheaper than regular phone calls, and about 20 per cent cheaper than calling apps over the Internet. Through Ringo, which char ges on a per minute basis and deducts credits that the consumer has to buy, Turakhia is making a small margin... "Our goal is [that] when we achieve the scale and volume, we will continue to increase and enhance that margin." NAME:-Kanchan I.D:- 1410039
China's growth slows to 7.4% in 2014
China's economic growth slowed to its weakest in 24 years, expanding 7.4% in 2014 from 7.7% in 2013. Growth in the world's second largest economy missed its official annual growth target of 7.5% for the first time in 15 years. But, the annual growth figures still came in higher than market expectations of about 7.2%. The economy expanded by 7.3% in the October-to-December period from a year earlier. That fourth quarter growth was unchanged from the previous three months, but also slightly above economists' expectations. Especially reassuring is that retail sales and industrial production accelerated from the prior year, giving China a bit more momentum heading into the year of the goat. China’s retail sales rose 11.9% last month from a year earlier, while factory output rose 7.9% in the same period. Both economic measures beat forecasts.
Name -Vijay Kumar ID No.
-1410014
The Rajan behind the unscheduled rate cut Reserve Bank of India (RBI) Governor Raghuram Rajan cut interest rates for the first time in almost two years .Deficit had fallen to a five-month low on account of plunging crude oil prices. When Rajan took charge at RBI in 2013, at a time the US Federal Reserve had declared its intent to wind down its stimulus programme, the rupee plunged in value in respect of the US dollar on fears about a spiralling current account deficit.
In a series of measures, Rajan managed to stabilize the currency that also brought back investors. "Rajan's disciplined and focussed approach in leading the Reserve Bank during his first year as governor was remarkably impressive," British magazine Central Banking said earlier this week giving Rajan their central banker of the year award for 2015. His decisive policy actions based on robust analysis and deep understanding of the underlying causes have contributed significantly to changing perceptions about the strength of the Indian economy. Rajan had predicted the 2008 markets crash caused by the housing market crisis in the US that put its economy into deep recession setting off a global slowdown. In 2011, he published the acclaimed Fault Lines on how hidden financial fractures threaten the world economy. The RBI cut the repo rate at which it lends to commercial banks by 25 basis points to bring it down from eight percent to 7.75 percent. The Indian basket of crude oil had traded Wednesday at $43.36 per barrel, having already touched a five-and-a half-year low. The wholesale price index data for December 2014 showed that inflation is easing, while Rajan's unscheduled relaxing can almost be attributed as a move to calm the clamour for a rate cut that was growing in proportion to oil's precipitous slide. A key element of the context Rajan finds himself in is the market, where the Bombay Stock Exchange shot up 729 points. At the same time the biggest fall in the stock market in five-and-a-half years last week was sparked by crude oil going below $50 a barrel. NAME-MDASGHAR SHAMIM ID-1410025
This is Microsoft’s surprising ‘Plan B’ for mobile
Microsoft’s mobile comeback—at least how the company had intended— isn’t happening. Despite Microsoft’s early presence in the Smartphone industry—years ahead of Apple and Google—and recent critical acclaim for the software, Windows Phone is a flop. In the second quarter, Microsoft’s global smart phone market share was just 2.5%, according to IDC. That represented a decline from the previous year in both share and actual shipments, despite a growing smart phone market. It truly is a two-horse race, with Google and Apple representing a combined 96.4% of shipments last quarter. A zoomed-out view of the smart phone industry shows just how completely Microsoft has missed the smart phone revolution. Share Tap image to zoom
But Microsoft, under new CEO Satya Nadella, still aspires to be a major player in the mobile industry. And this is where its stunted market share of smart phone software platforms really hurts. Not only is it missing out on potential hardware revenue, but it’s also losing a distribution channel for its own software and services. Google and Apple have used their popularity to push other software and services—many pre-installed on phones, or easily added on—like maps, media and app stores, cloud storage for backups and photos, and voice-activated search. The list of the 25 most popular smart phone apps in the US includes several from Google and Apple, but just one controlled by Microsoft: Skype. But Microsoft has a new strategy that sounds like nothing it would have muttered just a few years ago: “We’re going to be everywhere,” a Microsoft exec told me in a recent meeting. If you look now, it’s already starting to happen. Microsoft—yes, Microsoft— is building and shipping apps for iOS, Android, and the web. And people aren’t ignoring them. Its Office apps for iPad have been downloaded more than 35 million times, and Word is routinely a top-10 iPad app. Its Word, Outlook, and One Drive apps show up in the “Popular” section of Google’s Chrome app store. It’s working on more. Meanwhile, Microsoft is also in the early stages of trying to convert its global user base to cloud-based subscription services, such as Office 365, which starts at $7 per month for home users. The hope is to eventually
trade its outdated—but highly profitable—business of licensing software via one-time fees for recurring subscription revenue. NAME :- ATUL KUMAR SUMAN I.D NO. 1410022
FDI falls by 6 per cent in November to $1.53 billion
Foreign direct investment (FDI) declined by over 6 per cent year-on-year in 2014 to US $1.53 billion. In November 2013, the country had received FDI worth US $1.63 billion. However, for the period of the ongoing 2014-15 financial year, FDI grew by 22 per cent to US $18.88 billion as against US $15.45 billion in the corresponding year-ago period, according to data released by the Department of Industrial Policy and Promotion. Amongst the top 10 sectors, telecom received the maximum investment of US $2.47 billion in the eight months period of FY15, followed by services (US $1.84 billion), automobile (US $1.53 billion), pharmaceuticals (US $1.15 billion) and computer software and hardware (US $862 million). During the period under review, the country received maximum FDI from Mauritius at US $5.20 billion, followed by Singapore (US $3.74 billion), Netherlands (US $2.42 billion), the US (US $1.35 billion), Japan (US $1.28 billion). The country is estimated to require around US $1 trillion over five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth. The government is taking steps to boost FDI in the country. It has relaxed FDI in sectors including insurance, railways and medical. In the previous 2013-14 financial year, FDI stood at US $24.29 billion as against US $22.42 billion in FY13. Decline in foreign investments could put pressure on the country's balance of payments and may also impact the value of the rupee.
NAME:-CHANDAN KUMAR VERMA I.D NO:- 1410035
Need to gradually rationalise all subsidies
Ahead of the 2015-16 Budget, Finance Minister Arun Jaitley today said there was a need to rationalise all subsidies and ensure stability in policies to attract investment and drive growth. From January 1 LPG subsidy is going though banks...We have to gradually rationalise all possible subsidies. The government is expected to incorporate the suggestions of the Expenditure Finance Commission headed by former RBI Governor Bimal Jalan in the budget proposals for 201516.Jalan is reported to have submitted interim recommendations to the Finance Ministry suggesting various steps to rationalise subsidies and public expenditure. The government's subsidy bill towards oil, fertilisers runs into lakhs of crores of rupees. The Minister also underlines the need for stability in tax and other policies to make India an attractive place for investment. The implementation of the Goods and Services Tax (GST), he added, will help in improving the business climate in the country. The GST, the Minister said, was welcomed by different states and that "none of them will lose a single rupee" following the implementation of the new indirect tax regime. Referring to the proposed changes in land acquisition laws, Jaitley said that it would eventually help farmers to get better price for their land. Moreover, he added, establishment of rural infrastructure and industrial corridors would increase the price of land and generate employment for rural youth.
NAME :- DEVENDRA PAL I.D NO. 1410011
Rationalise taxation to boost investment culture
Currently, the taxation structure in the stock market is tilted in favour of intraday trades and the derivatives trading, while tax rates tend to be higher for delivery-based trades and the equity market trading. The way Indian markets are structured; there is a kind of penalty to delivery and also to the trading in the cash market, which is basically the market for investments. If you do intra-day trading in stock futures, you pay 40 per cent less STT (Securities Transaction Tax), vis-avis the intra-day trading in the equity trading. So, what is happening is that equity market liquidity has dried up and no investors want to come in and invest. Also, the maximum STT is for delivery-based transactions that are investment transactions and there is less STT for intra-day transactions which is not delivery based. The STT is even lesser for futures. So, effectively, we are penalising in our STT structure the investment activity. This is happening when India requires more money to be raised for PSUs and also for SMEs and large companies that would come to the market. If you have a framework where you can support investment by charging less transaction tax and get the balance from derivatives trades, it would be in the fitness of change for the government that is trying to promote investments. Today, a large part of revenue for exchanges comes from trading and therefore they also
focus a lot on trading. That takes away their focus away from the capital formation. So, the exchanges also need to change their business models, while the government needs to make some policy changes such as providing tax benefits. NAME :- POOJA SINGH I.D NO. 1410044
Muddle in the middle
The government does not appear to have a well thought out approach to the 2G and 3G spectrum auctions. It may not be in the best interest of consumers, telecom companies and the government itself. There are three major objectives behind the spectrum auction scheduled. One, to discover the price of airwaves and maximise revenue for the government so as to reduce the fiscal deficit to the extent possible; two, to provide enough spectrum to cellular operators who have been crying hoarse over shortage of spectrum; three, to improve the worsening quality of service to the consumer. In the long-term interest of the consumer, the sector and the government, the latter has to ensure none of them is short-changed. However, that's not the reality on the ground. Rather, it appears the government is working at cross-purposes. First, by sticking to its stand to charge a substantially higher floor price for spectrum auctions than the bidders would have liked, the government has sent out a clear message of revenue maximisation. But at the same time, by offering just 5 MHz spectrum - instead of the 15 MHz that the defence ministry is vacating in the 2100 MHz band - it will also lose potential revenue. The move goes against
the target of providing adequate spectrum to telecom companies and will surely not improve services to the consumer.
This has two implications: the unlikely implication is that the government's decision to reduce supply in the band will create artificial scarcity and raise bids to unviable levels. The thinking within the government was that cell co will bid aggressively to become pan-India 3G players (they have roaming agreements amongst them right now). However, that's not likely. The likely implication is that if the bidding gets aggressive, the industry will let this opportunity pass in 2100 MHz and wait for the remaining 10 MHz (perhaps even 15-20 additional MHz) coming their way in the next round of auctions planned some time towards the end of 2015 or early 2016. Meanwhile, the industry is hoping against hope that the Telecom Regulatory Authority of India (Trai) will stick to its stance of pricing the 3G spectrum in the 2100 MHz at Rs 2,720 crores as it had recommended earlier. The inter-ministerial telecom commission had asked Trai to reconsider its suggestion.
