Delta - Volume 3 - June 2011 - NL Dalmia Institute of Management Studies and Research

8/6/2019 Delta - Volume 3 - June 2011 - NL Dalmia Institute of Management Studies and Research

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COVER PAGE


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Pg No Topics (Click to Navigate)

From the Directors Desk

Editorial Note

6 Being Best I Can

8 ET Wealth Finance Gyaan !!!!

9 The Shinning Silver

10 The Great Indian Management

12 When you should expect the

unimaginable !

14 Can RBI & the Indian Government think

Innovative ?

16 Growing in the shades of a mentor

17 Change is Constant

18 Cairn India & Vedanta

20 Patterned nature of freely traded Markets

makes them Predictable!22 A Luminance Of Knowledge

24 Change

25 Life @ Dalmia

26 Games

8

18

16

22


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TeamDELTDirector: Prof. P L Arya.Faculty-in-Charge: Prof. Anil Gor.

Faculty Advisor: Prof. Vinayak S Date.

Head of Finance Department: Prof. Naveen Bhatia.

Chief Student Editor: Pranav N. Jain.

Editorial Team: Hetvi Dholakia, Meghna Dubey, Roshni Khanna.

Creative Team: Gaurav Salian, Jigna Purohit.

*Disclaimer: All Opinions expressed in this magazine are the personal opinion of authors and in no way reflect the views of the

Editorial Team or of the Institute. This magazine is only for internal circulation with no commercial/profit purpose. Information

collected in the magazine may be from public domain.


4/28

From:

The Directors Desk

The vision of N. L. Dalmia Institute of Management Studies and Research (NLDIMSR) is to provide the highest quality man-

agement knowledge and develop leaders of integrity.

Established in 1995, NLDIMSR has proved its mettle as a B-school by being ranked amongst India's TOP 25 B-School Brands

consistently over the last five years..

We are known for our Academic Rigor, Top Quality Faculty, Top Notch Placements, Dynamic Curriculum and State-of-the-

Art infrastructure.

Our college is gaining momentum with every passing year with our students making an indelible mark in the corporate

world. We are motivated to incessantly give our best in academic sphere and in the holistic growth of our student commu-

nity. Our students are groomed to become corporate leaders of tomorrow with incisive skills, deep - rooted fundamentalsand high ethical standards. I see my students not just as responsible managers but also as value based captains of the in-

dustry with global outlook and a sense of Indian culture and values.

NLDIMSR provides an academic environment where outstanding students from around the country are continually chal-

lenged and inspired to do their best.

With the wide spectrum of committees in our college like Finance Forum, Ace Club (Marketing club),HR Club, E-Cell

(Leadership Club),

Alumni Club etc. we strive to provide a platform to nurture the innate skills latent within the budding managers. From de-

bates, skits and seminars, management games, they provide an extensive breadth of opportunities for our students to out-

shine.

With this new endeavour of publishing our college magazine "DELT" we give an expression to the knowledge in the

minds and creative arc of our students, a chance to widen our horizons, valuable inputs from the faculty members and pre-

cious articles by the corporate world.

As we embark on a new journey, together we shall sail in the Ship of knowledge and anchor the harbor of success!

Prof. P L Arya,

B.E., PGDM (IIM-A)-

Director-NLDIMSR

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5/28

From:

The Editors Desk

Welcoming you all to yet another edition of our magazine DELT. We have received

overwhelming response by our readers and this time we also invited articles from our

alumni batch.

Since our previous issue, world has seen a spur of major events ranging from Tsunami

in Japan, unrest in Arab countries, killing of OBL, 2G scam verdicts and so many up-

turning events. Hence the theme for this edition comes out as CHANGE- Natures

Way for a Better Tomorrow.When you should expect the unimaginable! the cover

story, brings reality to clarity.

The Cairn-Vedanta deal was again a major happening that ruled the news headlines

and still the final verdict is yet to come. Get to know about the deal in gist in our arti-

cle Cairn Vedanta Deal. Amidst all this there was a silver lining in the form of sky-

rocketing Silver which rocked the commodity market big time. Get a glimpse in The

Shining Silver. Can RBI and Indian Government think innovative?! poses the ques-

tion which is very apt in todays scenario. Read through to know more about the

need of the hour.

Second semester at DIMSR was really eventful. At the Institute level we saw a good

sprint of events which included the most cherished PD-Camp at Khandala and various

other Seminars, Guest lecturers as well as National level paper presentation Competi-

tions.

Get a slice of the visit by MIT Sloan candidates to our institute as a part of their re-

search project in our An event to cherish! The great Indian Management and

Being the best I can are the special contributions from our alumni, Mr. Piyush

Deora and Mr. Sagar Pandya, respectively. As always ET Wealth will keep you up-

dated with wealth tips and Life @ Dalmia will give a glimpse of the events in out

Institute.

Once again I would like to thank all our readers for their keen interest in DELT and a

special thanks to our alumni for their contributions. A copy of DELT is being circu-

lated to all our alumni batches, corporate contacts and the present batches of our

Institute. So contribute and let a share of your fame spread across!!

Big thanks to all our Professors and Magazine Team to take keen interest in releasing

this issue. With everyone caught up in their summer internship, efforts of the entire

TeamDELTfor coordinating the DELT #3 release are commendable.

Wish you all a Happy Reading!!

Pranav Jain,

BMS, LL.B.

PGDBM 2009-11,

NLDIMSR.

Back to Index


6/28

bear the cracking quality o

video in silence. I was bor

and grew up on the ou

skirts of Liverpool. Oh m

God the problem was no

with video quality but wit

David, he could not spea

properly I realized. The

was a man sitting on wheelchair in front of cam

era struggling to speak. Sud

denly my frustration wa

converted to guilt of no

having understood this

first instance itself. Bu

again, I never expected

medically challenged perso

on the screen. I also fe

inquisitive to know mor

about David. I learned th

David was youngest of fou

children. At the age of 1

he and his sister were dia

nosed with rare genetic co

dition which causes th

gradual degradation of ce

As I had nothing much to do

I thought of completing the

pending Online Training

sessions. As part of on-

boarding program I had to

complete certain online

training module, most of

which were videos by higher

management on topics likeDiversity, Motivation, Focus,

Passion etc. trying hard to

convince the employees

that there can be actually

some other things which

can motivate people, more

than just money. At the

point, I was of quite the

contrary view. Nonetheless I

started scrolling through the

list of videos to be com-

pleted. Next in line wasBeing the best I can. I

clicked on the link & official

media player popped up. It

would be just another video

documenting experience of

some people who managed

to reach the top at a young

age (which at times makes

me feel a Loser with a capi-

tal L), preaching the impor-

tance of being best you can,

I thought as the media

player was buffering the

video.

The video started with ti-

tles. David Owen it read.

Hi, I am David Owen, I am

an Application developer.

Shriks! I exclaimed. I just

hated it when the videoscracked like the voice of the

person on other side of the

phone, in a low coverage

area. Here I assumed the

internet connection was

slow. I allowed it to buffer it

for a while and played the

thing again. Hi, I am David

Owen, I am an Application

developer. I got a bit irri-

tated and repeated the en-

tire process of buffering and

playing the video all over

again. Hi, I am David Owen,

I am an Application devel-

oper again the same

thing. I was super irritated

but had no option but to

complete this module and

Being Best I Can!

WHAT ISI T T H A T

M O T I -

V A T E S

Y O U T O

WORK?

M O N E Y ,

M O N E Y O R

M O R E

M O N E Y ? ?

THINK

AGAIN! !

S A G A R P A N D Y A

Sagar Pandya

MBA 2007-09

Risk Analysts

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7/28

I-can-and-gives-me-the-

determination-to-stay-at-

the-Bank-for-as-long-as-

possible. It-also-gives-me-

confidence-that-in-the-

future, as-my-condition-

progresses, Ill-find-a-way-

t o - w o r k - w i t h - s o m e -

support, so-I-have-no-

excuses-not-to-try.

By the end, I had to

change my opinion that

THERE INDEED ARE OTHERTHINGS THAT MOTIVATE

PEOPLE APART FROM

MONEY!!

tral nervous system. In the

video he slowly went on

with his story and by now I

was patient enough to listenhis cracking voice without

any hurry. He explained that

he did not initially under-

stand his condition so he

tried to live his life as nor-

mally as possible. through-

out-my-life-I-have-been-

very-sporty, possibly-for-the

-competitive-element-as-

well-as-being-part-of-a-

team. he said. I-used-to-

play-foot-ball-and-cricket-and-was-a-keen-swimmer.

Following success in his A-

Levels, David won a place at

Warwick University. It-

meant-I -would-have-to-

leave-home-and-fend-for-

myself. During the first

week of university I decided

that I had to use a wheel-

chair full time. This-wasnt-a

-diff icult-decis ion-as- it-

al lowed-me-to-become-

more-independent-and-

enjoy-university-life-to-the-

full-extent. Using the

wheelchair fulltime devel-

oped his upper body

strength and also allowed

him to learn to live life

around the wheelchair,

which had become vital. Dur-

ing his second year at univer-

sity he participated in the

summer internship at the

Bank for nine weeks and he

was offered a place on the

graduate scheme the follow-

ing year. That gave him achance of working and living

on his own. The-past-three-

and-a-half-years-have-been-

challenging-for-me-from-the

-pressure-of-work-as-well-as

-my-condition-worsening. I-

found-with-experience-I-

have-had-in-life,-that-with-

my-determination,-including

-the-support-of-family,-

friends-and-colleagues-I-

have-been-able-to-keep-

going. I-try-to-keep-in-mind-

that-everyone-has-problems

-and-if-they-get-through-

them-so-can-I. My eyes

went wet at these words, I

felt I have no right what so

ever to crib about my prob-

lems they are nothing com-

pared to Davids. If David can

so can I. I-have-lived-my-life

-giving-all-my-effort. What-I-

dont-want-to-be-able-to-say

-when-Im-older-is,-if-only-I-

had-worked-harder. This-

desire-drives-me-to-be-best-

T H E R E A R E

A F E W

T H I N G S

T H A T W E

A L L

S H O U L D

K E E P I N

M I N D

M O T I V A T I O N

I S R I G H T

I N S I D E Y O U

I F A N Y O N E

T H I N K S

M O N E Y C A NK E E P H I M

H A P P Y .

T H I N K

A G A I N . H E

S A Y S T H A T

C O Z H E

D O E S N ' T

H A V E I T

SOMETIMES YOU

HAVE TO STOP

THINKING SO

MUCH AND GOWHERE YOUR

HEART TAKES

YOU !!

Back to Index


8/28

pany. After meeting its opera

ing expenses, such as salary

taxes, a firm uses the remai

ing cash to make short ter

investments in inventory

receivables & long term inves

ments in plant, machinery

equipment. The amount th

remains is referred to as frecash flow for the firm, as it ca

be distributed among all th

firm investors, including equi

& bond holders.

6. Sweep in sweep out

It is deposit option that com

bines convenience of a savin

account with the high intere

rates of fixed deposit. If yo

opt for sweep facility, you havto determine a threshold f

the balance to be maintaine

in your saving account at a

times. Any amount exceedin

this limit gets automatica

swept out to the fixed depos

If you need to withdraw a su

that is more than the thresho

limit the required amount ge

swept into your saving a

count. This arrangement elimnates the need to break th

fixed deposit & you lose inte

est only on the amount that

actually used. It also does aw

the need to stash a large su

in saving account for liquidity.

1. Insure your Big day

If you are spending lakhs of

rupees on a wedding, it would

be prudent to protect yourself

against vulnerabilities such as

cancellation or damage during

ceremony. Wherever there

are financial risks involved,

insurance is a good way to

cover it. The insurance covers

personal accident, postpone-

ment/cancellation, burglary/

theft of jewellery & food poi-

soning. It does not cover dis-

pute between the parties, wil-

ful negligence, last minute jit-

ters. The premium is usually

0.75% to 1.5% of the cover.

2. Four steps to gain completefinancial control

You need to correctly esti-

mate your ability to meet

the mandatory expenses

for the present & the fu-

ture.

The expenses that are

discretionary should not

creep their way into the

mandatory category.

When it comes to allocat-

ing money between the

present & the future, plan-

ning is essential.

Unexpected expenses can

be managed efficiently

with insurance.

3. Fund of Fund( FoF)

Fund of fund is a mutual fund

scheme that invests its corpus

in the units of other mutual

fund plans. By investing in mul-

tiple schemes a FoF protects

the investors from the poor

performance of one mutualfund or the fund manager.

4. Application supported by

blocked amount (ASBA) ac-

count

While applying for initial public

offer investor can avail facility

of ASBA account. According to

this, the blocked amount for

which the application is being

made is debited from the in-

vestors account only when the

shares or units are allotted. Till

such time it continues to earninterest in the investors bank

account.

5. Free cash flow to firm

Free cash flow measures the

money that is left to pay to the

investors after meeting the

expansion needs of the com-

ET Wealth

Finance Gyaan!A M I T C H U R I W A L A

Amit Churiwala

B.E. Mechanical

MMS 2010-12

Back to Index


9/28

projected to rise 3.4% in 201

to 689.5 million ounces. Th

world supply of silver ha

gone up from 877 millio

ounces in 2001 to 1056 m

lion ounces in 2010.

As the dollar rebounded an

fundamentals came back in

focus, silver prices began t

take a hit at the beginning

May. The selling gained m

mentum when the CM

group raised margin requir

ments squeezing out sho

term investors.

The industrial demand side

silver is a key reason wh

silver is not a true sa

heaven play like gold. Silv

has dual personality of bein

a precious metal and indu

trial metal!

The massive sell off that has

wiped about one third of sil-

vers value was triggered by a

combination of factors and

concludes the point that ultra

volatile silver is not safe

heaven gold. The combina-

tion of factors that has putsilver on track for its worst hit

since its historic fall in 1980

is:

- Mass exit from red hot com-

modities.

- Fear about US central bank

taking away the easy money

bowl.

- Supply and demand metrics

Investors fearful about the

previously tumbling dollar

switched to silver surging the

metal to 165% gains between

August and April. The fantas-

tic returns widely outpaced

stocks, bonds and even gold,

which gained about 26% over

that span.

Under QE2 (Quantitative Eas-ing), black boxes were given

which allowed more money

to trade in the market. Retail

investors also got lured by

silvers relatively cheap price

tag compared to gold.

Sentiment began to shift in

the commodity world late last

month as the Federal Reserve

cemented its plans to end its

$600 billion bond buying pro-

gram. There were concerns

about the end of QE2 and

dollar was helped by the con-

tinuing debt mess in Europe.It appreciated 1.38% against

Euro, leaving the currency at

its best level since the end of

March. The high dollar would

bring sellers in silver that no

longer require hedge.

Meanwhile, silver can be

moved by supply and de-

mand which had been largely

ignored. Supplies of silverappear to be healthy and on

the rise. According, to the

2011 CPM Silver Yearbook,

mine production increased by

2.2% in 2010 to 667 million

ounces. Mine output was also

The Shinning Silver

WILLS I L V E R

E V E R R E -

P L A C E

G O L D A S

T H E S A F E

H E A V E N ?

A K S H A Y J A I N

Akshay Jain

B.Com

ICFAI

PGDBM 2010-12

Back to Index


10/28

pany which would prov

more economical.

There is a scam like Adars

where the babu's are bu

building luxury homes f

themselves, then there a

officials who have include

mockery as a national gam

by making the world laugh o

the way CommonwealGames were organized, th

2G scam has shown that th

erstwhile rulers of ancie

India would be put to sham

in terms of hold and pow

etc etc etc. The list goes o

Till the time this article come

up there would be anoth

list of scams being publishe

in the national dailies.

India is a huge country, pro

lems are a many, solution

are few and the people wh

are ready to pull the plug a

minuscule. Its time that th

powerhouse stop jugglin

between the problems, sol

Lakshmi Mittal tops the rich-

est persons list in UK for the

seventh year in a row. Vikram

Pandit bags the top post in a

foreign bank. An Indian is

appointed on a coveted posi-

tion in the Obama admini-

stration. All these news evokestrong sentiments in our

hearts. There's also a flip side

which goes as follows.

Air India is up and running.

Reinstated pilots, the recog-

nized unions and the centre

are happy.

This happiness has culmi-nated from a 10 day agitation

which translated into an addi-

tion of a loss of 200 crores to

the mammoth Rs. 13300

crore losses AI's incurred

since 2007. AI faces a daily

deficit of Rs. 57.5 crores. Yet

the issue of AI's privatization

has been skirted. A money

draining public sector defies

logic in post-reforms India.

Only that it serves a social

purpose doesn't put the mat-

ter under the mat. Opening

up of telecom sector showshow crucial private enterprise

is. The great reform phase

since 1991 quells any other

fear of the virtues of privati-

zation.

The war against terrorism has

taken a new turn with the

killing of the poster boy

Osama Bin Laden. USA does it

and Indian politicians propa-gate it. Its better to keep the

lid closed on contentious

boxes as has happened after

the Pakistani foreign secre-

tary Salman Bashir warned of

catastrophic consequences if

any country (read India) were

to try to carry out a US-style

operation. Nationalistic chest

-thumping in certain quarters

in India hasn't helped mat-

ters.

Corruption in India can alto-

gether be a new ministry in

the cabinet. The spokesper-

son of such ministry might as

well open a newspaper com-

The Great Indian

Management

T HE

GOOD AND BAD

O F I N D I A

- L A X M I

M I T T A L

T O P S U K

R I C H L I S T

- V I K R A M

P A N D I T

B A G S T O P

P O S T

- A N I N D I A N A P P O I N T E D

I N O B A M A

A D M I N -

I S T A R I O N

- A I R I N D I A

P I L O T S O N

S T R I K E

W I T H

L O S S E S

M O U N T I N G

U P

P I Y U S H D E O R A

Piyush Deora

B.E.Comp.

MMS 2009-11

Asst. Manager

ICICI Bank

Back to Index


11/28

Its not of a point to think

where to start from. Wher-

ever you stand there's an

opportunity to start. Its not

only the ones in power who

can make the change but

every common man needs to

stand and own it up. What's

the use of postgraduate de-

grees if the basic rules of life

are not adhered to. Its a mat-

ter of grave concern which is

needed to be dwelt upon

seriously and on a minute

level. I dream to see a day

without beggars,overloaded

public transport and smiling

faces everywhere. All I can

say is "Together we can make

a difference".

tions and their image make

overs.

The stability of governmentwas a ray of light but the sec-

ond term is now staring into

realms of darkness. The

growth story continues and is

being sung by every quarter.

India is poised to be the 5th

largest market in the world.

But are we really growing?

We are also poised to have

the largest population below

the poverty line. Still about

2/3rd of India's population

earns about 2$ a day.

Government's initiative of

bringing the fiscal deficit de-

pends on divestment

schemes which themselves

are a factor of Capital Mar-

kets. Are we so self insuffi-

cient? A railway minister uses

the national railways to capi-

talize on state elections and

the entire army of close to

600 democratic leaders re-

main mute spectators. A cabi-

net minister rolls out a na-

tional policy on telecom sin-

gle-handedly and causes

lakhs of crores of losses

equivalent to the fiscal deficit

itself. It is commendable how

a BCCI (national sports body)

official swindles crores and

blatantly denies any wrong-

doing from a safe haven

abroad.

We have lots of information

but very little of action. Eve-

ryone knows about the cash

stashed away abroad. But

there are only a few who do

not have been a part of the

trail. Everyone would have

been awestruck to know that

a money launderer without

any known source of income

is worth 60000 crores.

Credibility in today's world is

a matter of fiction wherein

even prestigious telcos are

involved in mudslinging. Na-

tional treasure is an illusion

when 2 brothers owning pri-

vate companies fight for gasin the highest court of law

and it requires the court to

make the government a party

to it. Common man yearns for

safety but a humongous ter-

rorist enjoys safety available

to only creme-de-la of the

political arena.

C O R R U P -

T I O N T H E

N E W M I N -

I S T R Y I N

T H E I N -D I A N

C A B I N E T

2 G S C A M

C W G

A D A R S H

H O U S I N G

S O C I E T Y

Back to Index


12/28

were all destroyed or swept

away. The quake struck about

250 miles north of Tokyo, but

initial estimates of the poten-

tial economic consequences

have been large, with one

analyst talking about 1% be-

ing knocked off GDP in the

short term. Japan will proba-bly have to empty its pockets

to repair the vast damage

caused. Ever since the Leh-

man Brothers collapsed in

2008, Japan has either been

in recession, or on the brink

of it. This earthquake adds to

the already existing problems

of a stagnant Japanese econ-

omy.

Towns vanished. Simply

gone! Thousands feared deadand thousands missing! And

if that was not enough, Japan

is also getting a firsthand ex-

perience of the vulnerability

of the nuclear energy. Japan

used nuclear technology to

become an industrial power-

house and now the same

technology is haunting its

very existence. Only a few

days ago, it was unimaginable

that an earthquake and a

tsunami would lead to abreakdown of multilayered

backup emergency systems in

the Fukushima Daiichi nuclear

complex. Then explosions

blew the tops off exterior

buildings covering the reac-

tors. When spent fuel rods in

storage ponds overheated as

their coolant evaporated, the

Every generation thinks it

has its answers and then

every Generation is humbled

by nature.

Who would have thought a

decade ago that a Tsunami in

the Indian Ocean would claim

230,000 lives across South

Asia? In the year 2008, therewere 8 hurricanes in the At-

lantic Basin, 5 of which be-

came very destructive, killing

over thousands of people.

The past year alone has

brought more earthquake

devastations to Haiti, Chile

and New Zealand, and a man-

made disaster sent millions of

gallons of crude oil into the

Gulf of Mexico.

How many times have youasked yourself in the midst of

these events: Can it possibly

get worse than this?

In spite of the mass destruc-

tions caused in the past, we

humans have repeatedly in-

vite the wrath of nature. The

recent crisis in Japan has

proved that we need to re-

work all the assumptions we

have about The Nature and

widen our horizons to think

beyond the unimaginable.

A death wave had struck Ja-

pan in the form of a Tsunami.

Tsunami is a Japanese word,meaning "harbour wave". The

earthquake in northern Japan

was remarkable in scale and

the devastation caused but

it struck a country that ex-

periences an earthquake in or

around its vicinity every five

minutes, and which is home

to world-beating expertise on

how to minimize the destruc-

tion triggered by the earth-

quakes. To be clear, the dam-age caused by one of Japan's

biggest quakes in over a cen-

tury is already huge. Japanese

media estimated a death toll

of 1,000, between 200 and

300 of them in the northern

port of Sendai alone. Cars,

ships, homes and offices

When you should expect

the unimaginable!

Every genera-

tion thinks it

has its answers

and then every

Generation is

humbled by

nature.

An earthquake of

9.0 magnitude hit

Japan on March,

2010 taking the

death toll to

more than 1000.

The Fukushima

Daiichi Nuclear

complex was built

in the Tsunami

corridors.

This massive

earthquake has

e c o n o m i c a l l ycosted Japan

almost 1% of its

GDP.

S H A R V A R I K H A N D E P A R K A R

Sharvari

Khandeparkar

B.Com,

PGDBM 2010-12

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13/28

Every generation thinks ithas its answers and then

every Generationishumbledby nature.

ment to be overconfident

that such a tragedy can never

happen in India. In fact the

government should see that

all the procedures to handlesuch nuclear emergencies are

in place and the companies

responsible for safety do not

cut corners.

We can also take lessons of

human spirit from Japan

With radiation at life-

threatening levels, 50 to 100

Japanese nuclear workers

stayed on the job, round the

clock, on what seemed like a

suicide mission to keep theDaiichi reactors from melting

down. They could have gone

home and catered to their

families post-earthquake

needs. But they stayed to

save more lives. HUMAN

SPIRIT! Unimaginable, isnt

it?

situation only got worse. The

partial exposure of reactor

cores raised the real threat of

a meltdown. In spite the last-

ditch efforts of the Japaneseto regain control, radioactiv-

ity levels remained high.

Its not that, Japan was un-

aware of how dangerous

earthquakes can be - and

how they can cause nuclear

crises. Cables released by

Wikileaks show that in late

2008 the International

Atomic Energy Agency

warned the Japanese govern-

ment about the threat that amajor earthquake could pose

to its nuclear plants. In re-

sponse, the Japanese built an

emergency response center

at the Fukushima Daiichi

plant, but the center was only

prepared to withstand a 7.0

magnitude quake. The recent

earthquake has been up-

graded to a magnitude of 9.0.

Considering the history of

major earthquakes suffered

by Japan, this was not

enough. Was it foolhardy on

the part of Japanese Govern-

ment to build nuclear reac-

tors so close to fault lines and

in a Tsunami corridor?

Japans nuclear crisis is a les-

son for all the countries to

stop and take a stock of its

nuclear plans, particularly

India who is looking to solve

its energy scarcity problems

through nuclear energy. Anew breed of small, modular

reactors promised cheaper

and safer nuclear energy, but

the Japans crisis show how

monumental the problems

can be if things go wrong.

India has about 20 reactors

including both civilian and

military. The Atomic Energy

Regulatory Board (AERB)s

disaster preparedness over-

sight is mostly on paper. TheJapanese crisis has forced

India to review Indias plans

of what would be one of the

worlds largest nuclear plants

at Jaitapur in a seismically

sensitive region of Maharash-

tra state which has experi-

enced 92 earthquakes since

1985 including one of magni-

tude 6.2. If a catastrophe like

Japan happens in India, how

organized or prepared are we

to handle a crisis like this

kind?

We must take a cue from this

tragedy in our pursuit of re-

ducing dependence on fossil

fuels through nuclear energy.

However, this disaster should

neither become a fodder for

the nuclear energy oppo-

nents to shut down nuclear

plants nor for the govern-

A few questions

we should ask:

Can it possibly get

any worse?

Have we invited

the wrath of Na-

ture on ourselves?

How many more

lives of our loved

ones are we loose

before we learn

our lessons?

Are these really

natural calamities

and not man

made?

Could we have

avoided this catas-

trophe?

Back to Index


14/28


15/28

to 2,000 crores in IDBI bank;

Bank of India received INR

1,111 crores and Indian Over-

seas Bank yet to take a call on

the amount to be raised from

government.

Instead if the government of

India and RBI would decide to

issue licenses only to those

entities that are willing to

take over these weak PSU

banks, then government can

raise approximately the fol-lowing amount to bridge the

fiscal deficit gap of India.

Deciding to issue new license

is a very bold move and a

step in right direction. But it

remains to be seen if govern-

ment is ready to take this

opportunity and make the

best use of it.

Lets look at the banking sec-

tor in detail.

We divide the banking sector

in two parts, the private sec-

tor and the PSUs. It is an un-

derlying fact that the Private

sector banks are performing

way better than the PSUs.

Lets compare a few statistics

here. The Net Interest mar-

gins (NIMs) for the private

sector banks in 2010 was

2.86% where as for the PSU

banks was 2.3%. The private

sector enjoy higher NIMs be-

cause they are cost effective

(their operational efficiency is

higher than PSUs) and they

do not lower the interest

rates as PSU charge a higher

interest rate and with compe-

tition being low in the Indian

banking sector, these banks

are making super normal

profits at the cost of eco-nomic growth; adding to in-

flation. This can also be vali-

dated by the fact that the

profits generated by Indian

banks are far above the

global standards especially

some of the developed

economies where NIMs are

around 1.5%. Other factors

such as the CASA deposit mix

and ROA also conclude thatthe performance of the PSU

banks haven't been at par

with the private sector banks.

The CASA deposit mix of a

private sector is around 43%

and for the PSU banks it is as

low as 37%, a wide gap.

The above table gives a fair

idea of how poor the per-

formance of some of the PSUbanks compared to the pri-

vate sector banks there is

wide gap in Net Interest Mar-

gins, Return on Assets and

Return on Equity. Private

sector banks like HDFC enjoy

NIMs almost double then

that earned by a PSU. They

would keep on enjoying these

super normal profits until

PSUs start performing and

improve their efficiency. But

till then, Indian Industrial

growth and inflation will play

havoc in the life of a common

man.

Also what government keeps

doing is infusion of capital in

these banks. Recently govern-

ment has infused capital to

the tune of INR 1,250 crores

Bank

No. Of Shares

Government Holds

Market Prices of Share

as on 11/05/2011

Total Amount C

Raised by gover

IDBI bank 641,287,110 136.80 87,728,0

Bank Of India 338,580,000 399.70 135,330,4

Indian Overseas Bank 333,600,000 155.00 51,708,00

Amount that can be used to bridge fiscal deficit gap. 274,766,50

Bank Sector NIM ROA ROE

HDFC Private 4.3% 1.5% 16.5%

Axis Bank Private 3.8% 1.5% 18.9%

Yes Bank Private 3.1% 1.6% 20.3%

Indian Overseas

Bank

PSU 2.7% 0.6% 9.6%

Bank Of India PSU 2.5% 0.7% 12.5%

IDBI Bank PSU 1.06% 0.5% 10.3%

Back to Index


16/28

P R I T E S H S O L A N K I & S O N A B A J A J

Growing in the shades

of a Mentor

ual level at the campus followed

by a 3 days camp at Khandala

where the students undergo

various kind of activities and

tasks which is again followed by

mentoring sessions so that the

mentors can observe and ana

lyze the changes in their men

tees and help them in a much

better way and also the mentee

get a chance to introspect and

take correct steps for improve

ment under the guidance of thei

mentors.

3 days of camp do teach them

some parts of management like

team work, crisis management

utilizing resources to the fulles

and right person for the righ

job. But mentoring as a pa

brings out the real progress in

students. A mentor understand

the student and brings out the

real self in front of that studentThe mentor helps the studen

with his career choices as wel

He helps to draw the right caree

path for his mentee and give

him constant support at ever

stage. Thus a never ending rela

tion is created between the men

tor and his mentee.

A good mentor-mentee relation

ship requires commitment, per

sistence and a resolute belief o

making a significant and positive

impact on the life of the otherand that is what is seen in each

and every mentor at our insti

tute. For some the mentors have

become a trusted friend, fo

some a confidante and for some

an advisor in many aspects of the

life and hence this whole ever

lasting process turns out to be

very effective and impactful.

A new employee always requires

help of the experienced in new

projects or assignments. How-

ever, even though we want guid-

ance, we do not want them to

decide how we do it. Freedom

coupled with guidance is the

perfect blend.

This guide can be a mentor An

evolved leader. Leader com-mands, while a mentor directs.

Leader is a part of the process

whereas a mentor is a catalyst,

who guides without being part of

the action.

Each employee has to be nur-

tured with the help of a senior

who is experienced in the skill.

This system of mentoring has

taken strong roots in todays

corporate training structure. For

instance, Narayan Murthy is

officially designated as the ChiefMentor of the Infosys Group.

We may have a good mentor

around us. But we should also

know how to benefit from their

experience. We need to pull the

training.

Training and discipline areacquired by accepting theauthoritativeness of the teach-ers in the respective fields- ArthashastraThe junior needs to have an atti-

tude of submission to his men-

tor, his Guru. Initially it may

seem difficult for a beginner who

has his own perceptions and

ideas. However, accepting the

mentors authority helps build

discipline. The person should

accept that the mentor under-

stands the subject better than he

does. At times it might be diffi-

cult to accept his decisions, but

he still needs to follow them as

he may not be able to see the

bigger picture as yet. Trying to

associate with the mentors

thoughts, ideas and way of think-

ing is very essential which helps

develop the required mindset.

Being in the company of the

mentor gives practical insightinto the theories one has learnt.

The basic objective of any train-

ing is to improve oneself, so is

mentorship.

Finally, one has to keep applying

in ones own self efforts what he

has learnt from the mentor. Con-

tinuous study helps one to de-

velop the intellect. Then he has

to test his intellectual under-

standing by applying it in practi-

cal situations. Change requires

time but it is essential to practice

it even it sounds difficult or dif-

ferent to ones behavior.

Once he sees the results, he gets

convinced about his knowledge.

Now he has mastered the field.

In fact with the help of his men-

tor, the theory and practice have

become one.

Realizing the importance of this

mentoring system it has been

adopted as a process in our Insti-

tute. Our institute knows the

need for a mentor for each stu-dent and therefore has a pro-

gramme for development of the

personality wherein mentoring

plays the pivotal role.

It is a wholesome process of

developing the personality of

each and every student which

starts with the mentoring ses-

sions both at group and individ-

Pritesh Solanki

BMS

PGDBM 2009-11

Sona Bajaj

B.Com

MMS 2010-12

Back to Index


17/28

leave in this part of the world

Anti Corruption Drive in

India

After 50 years of Indepen

ence the citizens of Ind

have raised their voic

against corruption under th

leadership of social work

Anna Hazare & yog gur

Baba Ramdev. Will the

bring about a revolution,

uprising? Will these cause

big change in India? On

time will tell.

In the last few months some

events have occurred which

have the potential to change

the way people live in this

world. The events that will

bring about significant change

in this world are: -

Osama Bin Laden shot dead

Osama Bin Laden, head of the

militant group al-Qaeda, was

killed in Pakistan on May 2,

2011. He was the mastermind

behind many terrorist activi-

ties like the September 11

attack in US, thus was placedon the FBI's Most Wanted

list. His death has given a

message to all the terrorist

organization that one day

every evil has to end. We

hope that after his death this

world will become a peaceful

place to live.

Earthquake in Japan

Earthquake having a magni-

tude of 9.0 on Richter scale

had struck Japan on11 march

2011, this was one of the five

most powerful earthquakes in

the world overall since mod-

ern record-keeping began in

1900. This was also coupled

with a tsunami. The earth-

quake & tsunami not only

caused the damage to prop-

erty & lives in Japan but also

to resulted into complete fail-

ure of theFukushima nuclear

plant. This will result into a

change in the way world will

deal with nuclear plants, the

safety standards have to be

more stringent.

Unrest in Middle East

There is a social unrest going

on in many Middle East coun-

tries like Egypt, Libya, and

Bahrain etc. The revolution

was inflamed by decades

worth of smoldering griev-

ances by the autocratic rule.

This forced Mr. Hosni Muba-

rak the President of Egypt to

resign from his post thus end-

ing his 30 years of rule over

Egypt. This will bring about a

change in the way people

Change Is Constant!!

A M I T C H U R I W A L A

Amit Churiwala

B.E. Mechanical

MMS 2010-12

Top World

News

- Most wanted

terrorist,

Osama Bin

Laden shot

dead

- Massive

Earthquake in

Japan

- Unrest in

Middle East

- Anti Corrup-

tion Drive in

India

Back to Index
http://en.wikipedia.org/wiki/Osama_bin_Ladenhttp://en.wikipedia.org/wiki/Al-Qaedahttp://en.wikipedia.org/wiki/Largest_earthquakes_by_magnitudehttp://en.wikipedia.org/wiki/Largest_earthquakes_by_magnitudehttp://en.wikipedia.org/wiki/Largest_earthquakes_by_magnitudehttp://en.wikipedia.org/wiki/Largest_earthquakes_by_magnitudehttp://en.wikipedia.org/wiki/Al-Qaedahttp://en.wikipedia.org/wiki/Osama_bin_Laden


18/28

R O S H N I K H A N N A

participating interest in th

oil field but pays royalty @

20% for all the oil extracted

Reason for this Simple: Gov

ernment compelled ONGC t

pay entire royalty as license

in 2005 when Productio

Sharing Contract (PSC) waentered into with Cairn India

the reason being dire need o

FDI & exploration technolog

in the sector at that point o

time.

Currently the operating an

capital expenditure is allowe

to be deducted from the sale

proceeds of oil and profits o

all stakeholders are calculated thereafter.

If it is allowed to recover roy

alty paid on behalf of Cair

India then, the governmen

share would comedown by $

billion. If it is added to th

cost of production then Cair

(Vedanta after takeove

would earn less in that case.

THE ISSUE IS CURRENTLY UNDER ARBITRATION

Total expected Royalties o

Government during the life o

the block (20 year life)

$14.6 billion.

A NEVER ENDING GOVERN

AT STAKE

25% of Indias Onshore

crude Reserves, $ 9.6

billion

And the fate of Indias

image as favourable FDI

destination at a crucial

time.

THE PLAN

The Indian subsidiary of

Vedanta, Sesa Goa would

be buying out 20% stake

in Cairn India Ltd. And

the remaining 40% would

be bought by Vedanta

Plc. The acquisition wasto be made via open of-

fer (as per SEBI takeover

code) to shareholders of

Cairn India. Vedanta of-

fers to pay Rs. 405 per

share which includes non

compete fees of Rs.50

per share, thus making a

grand entry into the Oil

and Gas sector by the

mining and metals major.

THE DEAL ARITHMATIC

Consider the Stats: (the deal

looks very attractive from

following)

- Cost of lifting crude lowest

in the world for Barmer field

@ $7-8 per barrel given

Cairns technology as against

$ 10-11 average.

- The BOE (a measure equal

to burning 1 barrel of crude

oil) is at $11 as against aver-

age of $13 for global players.

Thus, at constant price of $75

and output of 2,40,000 bar-

rels per day, the PAT turns

out to be $37 per barrel

which is 3 times global aver-

age of $ 12-13.

Block has earned $2 billion in

FY11 and expected to earn$12 billion in FY12.

THE BONE OF CONTENTION

The royalty issue has been

the main bone of contention

for the deal.

Currently ONGC owns 30%

Cairn India & Vedanta

- Sesa Goa to

buy 20% stake

in Cairn India

- Vedanta offersRs.405 per

share to share-

holders of Cairn

India through

open offer

- Vedanta to pay

non-compete

fees to Cairn

India thus mak-

ing a huge entry

in the Oil andGas sector

J I G A R J A T A N I A

Jigar Jatania

BMS

PGDBM 2010-12

Back to Index


19/28

Impermanence

R O S H N I K H A N N A

MENT ENGAGEMENT:

On March 14th SEBI gives the

nod for the Cairn Vedantadeal after removal of pre-

emption rights exercisable by

Vedanta Call option of Cairn

and Vedanta for buying the

remaining 20% in Cairn by

Vedanta.

But with Mr. Jaipal Reddy

taking charge, the deal took a

turn and he referred the deal

to the CCEA (Cabinet Com-

mittee on Economic Affairs)

and also to the Law ministry

citing legal issues. The deal

got a blow in final phase

when CCEA passed the ball

to a group of minister (GOM)

headed by Mr. Pranab Muk-

herjee to take a final call re-

sulting in extension of dead-

line to May 20 from April 15.

But given elections round thecorner and passing of NOC

from ONGC board (which

may take a week), even this

deadline seems to be not

enough.

THE EFFECT OF DEAL ON FDI

The Effect of the Delayed

Cairn Vedanta Deal waswitnessed directly in the

NELP IX round of the auction

of Oil and Gas fields in the

country. Out of 34 blocks on

offer majority (at least 23con-

fimred) have been awarded

to Indian firms.

THE PETRONAS STAKE SALE

AND TEPID RESPONSE FROM

OPEN OFFER

On April 19th 2011, Sesa Goa

acquired 10.4% of Petronas

stake in Cairn India in an

open offer for Rs. 331 per

share. Transaction was made

through a block deal on BSE

to save tax on Long Term

Capital Gains (@20%) and pay

only Securities Transaction

Tax.

Also the response from the

Open offer was tepid from

Cairn shareholders and Sesa

Goa could raise its stake by

only another 8.1%. This

would probably result in the

combined share or Vedanta

in Cairn at around 58.5%

{40% cairn (sub to govern-

ment approval) + (10.4%

+8.1%) of Sesa Goa}.

The shareholding of Cairn

India after Petronas stake

sale

THE ROYALTY

ISSUE HAS

BEEN THE

MAIN BONE

OF CONTEN-

TION FOR

THE DEAL

Back to Index


20/28


21/28

Every generation thinks ithas its answers and then

every Generationishumbledby nature.

Waves Capital is

one of the elite

market forecasting

and research house

in India providing in depth

analysis and forecasting of

global markets across variedasset classes including Equi-

ties, Commodities, Currencies,

Bond Yields. Analysts at

Waves Capital are qualified

Chartered Market Technicians

(CMT) & Chartered Financia

Analysts (CFA) who employ

unique techniques of Eco-

nomic, Cycle and Intermarket

analysis along with Elliott

waves to derive at market

forecasting. Waves Capit

also educates and trains in-vestors and public at large

about scientific and system-

atic mode of investing and

trading.

Contact information:

www.wavescapital.com,

Email: help-

[email protected],

Follow us on Linkedin / Face-

book: WavesCapital

Elliott wave provides us the

tool to identify these re-

peating Patterns & Fractal

nature of markets and helps

us exploit them to our ad-

vantage.

As per Robert Prechter, the

above chart shows Elliott's

idea of how the stock mar-

ket is patterned. If youstudy this depiction, you will

see that each component,

or "wave," within the over-

all structure subdivides in a

specific way by one simple

rule: If the wave is heading

in the same direction as the

wave of one larger degree,

then it subdivides into five

waves. If the wave is head-

ing in the opposite direction

as the wave of one largerdegree, then it subdivides

into three waves (or a varia-

tion).

This Elliott wave pattern is

seen across the world major

stock indices.

Everything in this world is

symmetrical & patterned

and there is no place for

randomness to exist for ex-

tended period of time. We

are against the theory of

Efficient Market Hypothesis

that claims humans are ra-

tional animals. This is

against the law of nature

and humans do deviateaway from rationality and

choose the path of herding

thereby exhibiting trends &

patterns of repeatable

forms / structures, making it

plausible to predict the mar-

kets.

There is no chaos in this

perfectly rhythmic world

which is driven by the lawsof nature and freely traded

markets like stock markets

are no exception!

Back to Index
http://www.wavescapital.com/http://www.wavescapital.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.wavescapital.com/


22/28


23/28

Lord Krishna to help him in meeting his vow/pledge/

goal and the deadline.

Battle began next morning. Kauravas had known Ar-

juna's intentions to kill Jayadratha before sunset. They

surrounded Jayadratha from all sides so that Arjuna

could not even see him. They wanted that at the end of

the day, Arjuna should commit self immolation.

Arjuna made all attempts throughout the day to locate

Jayadratha but did not succeed. He was constantly

watching the movement of sun in the sky. As the day

drew to an end, Arjuna looked at Lord Krishna for help.

In a few momemts, sun appeared to have set in the ho-

rizon. Conch shells were blown to declare closure of the

battle of that day. All the Kauravas rejoiced and Jayad-

ratha came out of his hiding. He went close to Arjuna

and said sarcastically, "Buddy, I am here. What about

you and your vow? Getting ready for self immolation ? "

Just at that time, sun appeared again in the sky. Lord

Krshna told Arjuna, "Dear Parth, see there. The sun has

not set as yet. Take your bow and arrow and kill your

enemy." Arjuna shot an arrow and killed Jayadratha

instantly.

Once this was over, Lord Krishna addressed Arjuna ,

"Dear Parth, I knew that you would not be able to kill

Jayadratha till sunset because he was being protected

with a ring of warriors around him. I felt it necessary tohelp you out , hence, I enveloped the sun inside the

clouds for a while. I knew it was a little unfair, but every-

thing is fair in love and war"

"But", Lord Krishna continued "I must tell you Arjuna,

thet all of you Pandavas have a peculiar habit of taking

vows and pledges unnecessarily. Even if you do that,

why you guys irrelevantly connect one thing with an-

other. For example, your wife Draupadi has taken a vow

that she will not tie her hair till she rinses her hair with

the blood of Dushaasan. Bheema is moving around with

a pledge that he will never relax till he breaks the thighs

of Duryodhana. You took a pledge to kill Jayadratha be-

fore sunset. Whatever you have to do, do it, but plan

your strategies properly. Never be in a hurry".

Learning from the story :-

War should be fought with peace in mind.

Analyse your resources

Targets/deadlines should not be set when emotions

are running high.

If we mix up two or more issues in our targets, we

may not be able to focus on any one of them. Ar-

juna mixed up his target of killing Jayadratha with

sunset. He had to continuosly look at sun while

looking for Jayadratha.

Idea and Concept by: LivLyf

[email protected]

Back to Index


24/28


25/28

Life @ DalmiaHere we welcome you once again to the happening life at Dalmia!!

The three day PD Camp at Khandala rocked us once again with the thrilling and fun filled activities along with our senior

buddies, professors and an enthusiastic and helpful external training team which made us learn a lot the fun way. All the

activities and events made us return with valuable learnings. Working in teams, flexibility, strategizing and control were

the key learnings. The cherry on cake was added by the physical activities of trekking, rope walking and rope climbing

which made us aware of the stamina and physical fitness which will be demanded by the competitive world outside. An

article covering this Camp event was also published in Free Press Journal.

PD Camp was followed by a spur of events in our Institute premises. Utkarsh, a national level paper presentation compe-tition, an HR club initiative, saw an overwhelming participation by various reputed B-Schools. Next in line was the E-cells

event Ideas for India which witnessed enthralling participation by our students, with each eager to present a vision for a

progressive India. This event also saw tie up with some NGOs like Muskaan as a part of CSR activity by E-Cell. Queued

up next was Vishleshan an intra collegiate event ofFinance Forum which was held in stages and was concluded with

Case Study presentation. Various seminars were also organised during the semester which included Seminar on Career

Paths Options where senior alumni from different batches of our Institute were invited to guide students on career op-

tions ahead in finance. A guest lecture on Corporate Governance was conducted by the Managing Director of Tata Ser-

vices, Mr. TR Doongaji, who enlightened students on importance of ethics in Bussiness. This was followed by a seminar

on Leadership by Senior Police Commissioner Mr.Shivanandan to guide students on ABC of leadership. All these events

were followed by Madhayam, yet another mega national level marketing paper presentation competition which was

based on the topic Celebrity Endorsement: Sparking Cognitive Dissonance among Consumers?? Madhayam received a

whopping response from B-schools across India. Beyond seminars and paper presentations, the fun quotient was in-

creased with screening of the Cricket World Cup Match in Institutes auditorium which got enhanced with thrilling win of

the Indian team.

With seniors graduating and stepping into the corporate world, we bid a farewell to all of them wishing them All the

Best and taking a step ahead in our careers by officially becoming the seniors!

Now its some learning time again. Our students have taken up two months summer internships at various reputed or-

ganisations to get some hands-on corporate experience, a precursor to the life after Dalmia.

The next session will be followed by the introduction of new batch of students.

Till then keep your eyes glued to this space for more updates in our next issue.

Meghna Dubey

B.E. Extc

MMS 2010-12

Back to Index


26/28

Solution: Rotate the PDF 180 to view the Answers

Play SuDoKu

SuDoKu Solution

Jumbled Tumbled

LOL

ROFLBULLS EYE

5 Average I 7Good I 8Outstanding

How many words of four or more letters can

you make from the letters shown?

1. Every word must contain the central

letter

2. There should be one seven letter word

3. British English Dictionary is used as refer-

ence.

JumbledTumbled:DECK,PADDLE,PORT,WATER,CABIN,RIVER,ENGINE,STEAM,WHEEL,BOAT,FLAG.

GoFigure:EASY7+8+1-8=8,Medium9+4-9-2=2,Hard7+2x1x3=27

BullsEye:Delve,Dove,Love,Loved,Vole,DEVELOP

Back to Index


27/28

Soliciting Readers Feedback

This is the third edition ofDELT and we have endeavored to make DELT a source of focused, informative, interesting

and current scenario based e-magazine. To further align our content with your expectations and needs, we request

you to help us with your suggestions and constructive feedback.

We look forward to receiving your valuable feedback.

DELT,

Finance Forum,

N.L. Dalmia Institute of Management Studies and Research.

Modes of Submission:

Submit your feedback at nldalmia.blogspot.com

E-mail us at [email protected]

Inviting Articles

We thank our contributors for sending in some really thought provoking, comprehensive, and well written articles. Also we

would request them to keep sharing their knowledge and thoughts with us.

We would like to invite all our readers to share with us their knowledge on issue of current importance and their experience

which can act as an inspirational note for our readers.

Guidelines for articles:

Informative articles should be well-researched and supported by data and examples.

Articles relying on surveys and statistical research are expected to be on recent data.

Pure theoretical articles on general topics (human resource, leadership, etc.) must demonstrate value-addition

by the author aggregation, simplification, exposition, or applicability to real life situations.

Length of article should do justice to the topic. It could vary between 750 1000 words.

Article should be concise and in simple language. The use of jargon should be avoided unless required.

If you are quoting from an already published source, please give credit to the author and the publication.

You can either e-mail us your articles at [email protected] or

contact us through our blog (http://nldalmia.blogspot.com).

TeamDELT Back to Index
mailto:[email protected]:[email protected]


28/28

Documents

Delta - Volume 3 - June 2011 - NL Dalmia Institute of Management Studies and Research