INFLATION

WHAT IS INFLATION?
The measure of price increases within a set of goods and services over a period of time is known as inflation. The most common gauge of inflation is known as the CPI, or consumer price index, which measure the price increases (decreases) of basic consumer goods and services. The GDP deflator is another very important measure of inflation as it measures the price changes in goods that are produced domestically. In effect, inflation decreases the value of your money and makes it more expensive to buy goods and services.

CAUSES OF INFLATION
There are a few different reasons that can account for the inflation in our goods and services; let's review a few of them.

Demand-pull inflation refers to the idea that the economy actual demands more goods and services than available. This shortage of supply enables sellers to raise prices until an equilibrium is put in place between supply and demand.
The cost-push theory , also known as "supply shock inflation", suggests that shortages or shocks to the available supply of a certain good or product will cause a ripple effect through the economy by raising prices through the supply chain from the producer to the consumer. You can readily see this in oil markets. When OPEC reduces oil supply, prices are artificially driven up and result in higher prices at the pump.
Money supply plays a large role in inflationary pressure as well. Monetarist economists believe that if the Federal Reserve does not control the money supply adequately, it may actually grow at a rate faster than that of the potential output in the economy, or real GDP. The belief is that this will drive up prices and hence, inflation. Low interest rates correspond with a high levels of money supply and allow for more investment in big business and new ideas which eventually leads to unsustainable levels of inflation as cheap money is available. The credit crisis of 2007 is a very good example of this at work.
Inflation can artificially be created through a circular increase in wage earners demands and then the subsequent increase in producer costs which will drive up the prices of their goods and services. This will then translate back into higher prices for the wage earners or consumers. As demands go higher from each side, inflation will continue to rise.
EFFECTS OF INFLATION
The effects of inflation can be brutal for the elderly who are looking to retire on a fixed income. The dollars that they expect to retire with will be worth less and less as time goes on and inflation goes higher.

When the balance between supply and demand spirals out of control, buyers will change their spending habits as they meet their purchasing thresholds and producers will suffer and be forced to cut output. This can be readily tied to higher unemployment rates. When extremes arise in the supply/demand structure, imbalances are created.

The mortgage crisis of 2007 is a great example of this. Home prices were increasing at a very rapid rate from 2002 to 2005 and got to the point where the prices became too high, forcing buyers to step aside. This lack of demand forced sellers to drop prices back to a point where there is demand. As I write this article, this equilibrium has still not come into the real estate market. This is due to many factors, as you will read in our mortgage crisis article, but the extreme acceleration of inflation in home prices is directly correlated to the pullback we are seeing.

A similar example can be seen in the internet euphoria in the stock market back in 1998 to 2000. This rapid acceleration in stock prices eventually became unsustainable and led to a disastrous fall.

The point that is being made is that if inflation is not contained and rises at an unsustainable rate; the stronger the impact on the other side. There is a saying; "the bigger they are, the harder they fall".

WHAT IS THE CPI?
The consumer price index, aka. CPI, is the key gauge for inflation; it measures price increases and decreases on common group of consumer goods and services on a monthlybasis.  The CPI is calculated by taking a weighted average of price change for a pre-determined group of goods.  The goods are weighted in order of their importance.  The consumer price index is very similar, but not to be confused with, to the cost of living index which allows for substitutions of the items as prices move higher or lower.

The BLS, or bureau of labor statistics, publishes CPI data in three main categories: CPI-U (CPI for urban consumers), C-CPI-U (chained CPI for all urban consumers), and CPI-W (CPI for Urban Wage Earners and Clerical Workers).  CPI-U, as the name suggests, represents the purchasing habits of consumers in urban or metropolitan areas.  CPI-W calculates CPI for a portion of the urban population; the population used in this study requires an urban area to have a minimum of 2500 residents to be considered.  Finally, the C-CPI-U is the newest CPI gauge and also the one that is supposed to adapt to consumer needs over time.  The basic premise of this measure is that consumers will alter spending habits over time to accommodate for a changing marketplace or more likely a change in price.

Another key indicator that many economists review is the Core CPI; this sub-index measures CPI leaving out the two most volatile components, food and energy.  This allows economists to truly understand if goods and services which have steady rises in price are starting to accelerate faster than the average rate.

HOW CAN YOU USE THE CPI?
The most common use of the CPI data is to asses the economic landscape and primarily inflation.  The CPI also has large ramifications on consumer income.  Social Security, Federal Pension benefits, Food Stamp benefits, and even Treasury Inflation Adjusted Bond securities (TIPS) are adjusted up or down using CPI as the guide.  Thankfully, the consumer price index is assessed annually by the IRS to determine if changes need to be made to the tax brackets or even standard deductions.

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FINANCIAL CRISIS EXPLAINED!!!!

This is how the present  recession or financial ciris is explained and sure you will also undedrstand it.  Who is bothered about aam admi?


Heidi is the proprietor of a bar in Berlin.  In order to increase sales, she decides to allow her loyal customers - most of whom are unemployed alcoholics - to drink now but pay later.  She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around and as a result increasing numbers of customers flood into Heidi's bar. Taking advantage of her customers' freedom from immediate payment constraints, Heidi increases her prices for wine and beer, the
most-consumed beverages.  Her sales volume increases massively.

A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit. He sees no reason for undue concern since he has the debts of the alcoholics as collateral.

At the bank's corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS.  These securities are then traded on markets worldwide.  No one really
understands what these abbreviations mean and how the securities are guaranteed.  Nevertheless, as their prices continuously climb, the securities become top-selling items.

One day, although the prices are still climbing, a risk manager (subsequently of course fired due his negativity) of the bank decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Heidi's bar.

However they cannot pay back the debts.

Heidi cannot fulfill her loan obligations and claims bankruptcy.

DRINKBOND and ALKBOND drop in price by 95%.  PUKEBOND performs better,  stabilizing in price after dropping by 80%.

The suppliers of Heidi's bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation.  Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor.

The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties.

The funds required for this purpose are obtained by a tax levied on the non-drinkers.

Finally an explanation we can all understand...

 

Understanding Financial Crisis in simple terms


Heidi is the proprietor of a bar somewhere in Europe. In order to increase sales, she decides to allow her loyal customers - most of whom are unemployed alcoholics - to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).

Word gets around and as a result increasing numbers of customers flood into Heidi's bar.

Taking advantage of her customers' freedom from immediate payment constraints, Heidi increases her prices for wine and beer, the most-consumed beverages. Her sales volume increases massively.

A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit.

He sees no reason for undue concern since he has the debts of the alcoholics as collateral.

At the bank's corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then traded on markets worldwide. No one really understands what these abbreviations mean and how the securities are guaranteed. Nevertheless, as their prices continuously climb, the securities become top-selling items.

One day, although the prices are still climbing, a risk manager (subsequently of course fired due his negativity) of the bank decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Heidi's bar.

However they cannot pay back the debts.

Heidi cannot fulfill her loan obligations and claims bankruptcy.

DRINKBOND and ALKBOND drop in price by 95 %. PUKEBOND performs better, stabilizing in price after dropping by 80 %.

The suppliers of Heidi's bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor.

The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties.

The funds required for this purpose are obtained by a tax levied on the non-drinkers.

Now I hope you finally understand our current Financial Crisis! 

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India's 10 Richest Buisness Men

India's 10 Richest

The global financial crisis has hit the subcontinent hard--the wealthiest Indians are worth 60% less than a year ago.





# 1 Mukesh Ambani





Net Worth: $20.8 billion 

Age: 51
Marital Status: Married, 3 children
Hometown: Mumbai


Makes debut as India's richest, despite fact that net worth fell $28.2 billion in past year as stock price of petrochemicals flagship Reliance Industries tanked. Unfazed, Mukesh upped Reliance stake, paying $3.4 billion to convert 120 million preferential warrants into shares, at a premium to stock price. Legal spat with estranged brother Anil over gas supply agreement still unresolved.


# 2 Lakshmi Mittal




Net Worth: $20.5 billion 

Age: 58
Marital Status: Married, 2 children
Hometown: London


Stock of world's largest steel outfit, ArcelorMittal, which he heads, spiraled to 4-year lows amid falling steel prices. In November announced plans to cut output, reduce debt. Mittal joined Goldman Sachs board in June. Has stakes in Indiabulls, RAB Capital.



# 3 Anil Ambani





Net Worth: $12.5 billion 

Age: 49
Marital Status: Married, 2 children
Hometown: Mumbai


Plans to merge his Reliance Communications with South Africa's MTN in what would have been India's largest-ever overseas deal were scuttled in July after brother Mukesh threatened to sue, claiming he had right of first refusal. Stock stumbled 48% since. Married to a onetime Bollywood actress, Anil has Hollywood ambitions: His Reliance Entertainment is investing $500 million in a new studio venture with Steven Spielberg's DreamWorks.



#4 Sunil Mittal





Net Worth: $7.9 billion 

Age: 51
Marital Status: Married, 3 children
Hometown: Delhi


Runs Bharti Group whose Bharti Airtel is country's largest mobile phone operator. In May backed out of deal to take over South Africa's MTN, opening door for Anil Ambani's failed bid. Launched Airtel Digital TV, a direct-to-home digital television service. Joint venture with Wal-Mart expected to open its first store next year. Funding soccer academy.



#5 Kushal Pal Singh





Net Worth: $7.8 billion 

Age: 77
Marital Status: Married, 3 children
Hometown: Delhi


Real estate baron and DLF chairman lost $27.2 billion in past year. Attempt to boost share price through share buyback was unsuccessful as were its plans to list its real estate investment trust in Singapore. Company paid $40 million in February to sponsor new cricket league for 5 years.



#6 Shashi & Ravi Ruia





Net Worth: $7.6 billion 

Age: 64
Marital Status: Married, 2 children/Married, 2 children
Hometown: Mumbai


Brothers' Essar Group's most valuable asset is 33% stake in mobile phone operator Vodafone Essar, India's third largest. Also own 8% in rival telecom firm BPL Mobile. Lost out to Russian firm Severstal in bid for steelmaker Esmark this year. Other holdings in shipping, oil, construction, power.


7 Azim Premji




Net Worth: $7 billion 

Age: 63
Marital Status: Married, 2 children
Hometown: Bangalore


Longtime head of $4.9 billion (revenues) Bangalore outsourcing giant Wipro, handed over operations to 2 co-chief executives in April. Remains chairman. Hit by global economic slowdown, stock is down 44% in past year.





# 8 Kumar Birla




Net Worth: $5 billion 

Age: 41
Marital Status: Married, 3 children
Hometown: Mumbai


Head of Aditya Birla Group, commodities conglomerate inherited from father, with operations in 25 countries. His telecom outfit bought 50% of mobile operator Spice Communications. In October a rights issue by its aluminum maker Hindalco unraveled as its stock price plunged to alltime low.



#9 Adi Godrej




Net Worth: $4 billion 

Age: 66
Marital Status: Married, 3 children
Hometown: Mumbai


Third generation head of Godrej Group, a consumer products conglomerate which makes locks, soaps, mosquito repellants, furniture and foods. In major image makeover, group logo was changed for the first time since it was founded 111 years ago. Following the easing of decades-old land ownership restrictions, Godrej has outlined ambitious plans to develop family's 3,500 acre estate in suburban Mumbai. Son Pirojsha, a Columbia grad, works in property arm.


#10 Gautam Adani




Net Worth: $3.9 billion 

Age: 46
Marital Status: Married, 2 children
Hometown: Ahmedabad


Dropped out of college to start a trading outfit 20 years ago. Now his Adani Enterprises has interests in edible oils, power, infrastructure. Owns Mundra Port, India's largest in private sector. Fishermen recently took Adani to court over special economic zone he's building on western coast; court ruled in his favor. Plans to list power subsidiary are delayed

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In Pictures: Billionaire Rivals gaming tycoons ..read on

In Pictures: Billionaire Rivals
* Sheldon Adelson vs. Steve Wynn




These gaming tycoons have competed for years on both the Las Vegas Strip and in China's Macau. There is no love lost between them: Adelson has referred to Wynn as "a liar" and "an egomaniac," while Wynn says Adelson "has an inferiority complex." Wynn also criticized Adelson's Venetian's for its lack of parking while Adelson complained about the loud noise coming from Wynn's fake volcano. While shares of Wynn Resorts outperformed Adelson's Las Vegas Sands in the past year, Adelson is still worth more than twice as much as his longtime nemesis.



* Mukesh Ambani vs. Anil Ambani






Once inseparable brothers fought over control of India's largest company Reliance, founded by their late father. Their mother, Kokilaben, brokered peace and divided up the company in 2005. Mukesh got petrochemicals giant Reliance Industries, while Anil gained control over communication, energy, and financial holdings. In July 2008, Mukesh helped foil merger plans between Anil's Reliance Communications and South Africa' MTN to create a telecom powerhouse. In September, Anil sued Mukesh for defamation over a New York Times interview. There is also an ongoing lawsuit involving a gas supply deal. Still there are signs of thawing: Last February, brothers co-hosted mom's 75th birthday party.



* Ernesto Bertarelli vs. Larry Ellison






The yachtsmen have been passionately quarreling over sailing's prestigious America's Cup for the past two years. Bertarelli, who already won the silver cup twice, wants to race a Spanish club that some say is not qualified. According to critics, he is trying to revise the race's rules to his benefit, rather than face Ellison. Meanwhile Bertarelli accuses Ellison of trying to buy the cup, spending $100 million on his efforts. Ellison sued for the right to race Bertarelli, and in May, the New York Supreme Court ruled in his favor, saying that Bertarelli must race him in February 2010.



* Silvio Berlusconi vs. Rupert Murdoch





Former friends are now waging a media war against each other. In early June, Italy's Prime Minister Berlusconi appeared on TV claiming Murdoch was using his newspapers to personally attack him. The reason: Italy doubled taxes on Murdoch's Sky Italia TV system in December. Articles in Murdoch's Times of London called Berlusconi "a buffoon" with "utter contempt for Italian people." His Sky Italia has aired commercials criticizing the Berlusconi government and also broadcast Shooting Silvio, a film about the assassination of the Italian billionaire. 

* Aliko Dangote vs. Femi Otedola



Nigeria's richest were close friends until spring 2008 when Dangote, who made a fortune off sugar and cement, outbid oil tycoon Otedola for Chevron's West Africa Division. Otedola claimed Dangote broke a gentlemen's agreement not to get involved in each other's industries. This March, Otedola accused Dangote and broker Nova Finance and Securities of manipulating Otedola's African Petroleum for "settlement of personal scores," after its shares fell 80% in eight weeks. Nigerian regulators cleared Dangote of stock manipulation, but suspended operations of Nova Finance for a year. The stock drop was enough to push Otedola out of the billionaires club for now.



* Barry Diller vs. John Malone




Friends and business allies hit a rough patch last year. Malone's Liberty Media owned 30% of Diller's Internet conglomerate IAC/InterActiveCorp and had 60% of the voting power. But the partnership became increasingly strained as the two disagreed over how to manage IAC. When Diller announced plans to break up the group into five companies, Malone sued to stop him, worrying it would dilute his voting power. In March 2008, a Delaware court sided with Diller: He split up IAC in August 2008. Despite the spat, Malone's Liberty is still a key investor in Diller's companies.


* Carl Icahn vs. Jerry Yang





The fight between these billionaires started soon after Yahoo!'s board passed on a deal to sell the online search outfit to Microsoft for $45 billion last summer. Yahoo investor Icahn threatened to oust its billionaire founder and chief executive Yang, who temporarily pacified Icahn with three board seats. In November, Yang stepped down amid accusations that he'd bungled the Microsoft deal. That same month Icahn bought 6.8 million more shares of Yahoo, bringing his total to 75.6 million shares, or 5.5%; Yang, who remains on the board, owns 54 million shares.



* Vladimir Potanin vs. Mikhail Prokhorov




Once good friends and successful business partners, together they created a commodities empire. But the relationship began to unravel two years ago apparently over differing management and personal styles. Prokhorov was arrested in 2007 at a French Alpine resort for allegedly supplying prostitutes to friends. Later released without being charged, the incident reportedly strained his relationship with the married Potanin. Since then they have parted ways, with Prokhorov selling his Norilsk Nickel stake to billionaire Oleg Deripaska instead of Potanin who hoped to win it with a low-ball bid. Prokhorov was worth more than four times as much as Potanin in March.  

 

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sOme great tiPs from stOck market masters ```

 sOme great tiPs from stOck market masters ```


Great traders are created, not born. Those who lack discipline, persistence and self-confidence lose the never-ending challenge of trading profits. But those who survive the battle by using the tools used by the masters enjoy the fruits of consistent success.
Different master traders use different methods and approaches. But what is that one aspect that the greats all agree on, masters ranging from George Angell, day-trader, technical analyst par excellence; Gerald Appel, father of MACD, one of the most widely followed timing tools; Bruce Babcock, developer of trading software; George Lane, father of stochastics and one of the most experienced technical analysts in the world; Robert Prechter, the pre-eminent Elliott Wave analyst whose forecasts are followed by traders throughout the world; Welles Wilder, the man behind Delta and RSI and developer of technical tools that have revolutionized the trading world; and Larry Williams, colourful, controversial - a legend in his own time.
No, it's not some glamorous or sexy new fail-safe technique. Rather the one aspect of universal agreement among master traders is the importance of discipline. Discipline is probably the most worn-out term in trading. But that doesn't alter its importance. Also, saying the word is one thing; truly understanding its dimensions on an operational or behavioral level is another. Here are the golden rules of disciplined trading.




Be persistent



This is perhaps the single most important quality a trader can possess. Trading requires the ability to continue trading even when results have not been good. Due to the nature of markets and trading systems, good times frequently follow bad times, and bad times frequently follow good times. Some of a trader's greatest successes occur following a string of losses. This is why traders must be persistent in applying their trading methods and continue using them for a reasonable period of time.



Accept losses



Another important quality that the market masters emphasise is the ability to accept losses and to take them promptly. Perhaps the single greatest downfall of all traders is the inability to take a loss when it should be taken. Losses have a nasty habit of becoming worse rather than better. Unless they are taken when they should be, the results will not be to your liking.


Avoid overtrading



Too many traders feel that they must trade every day. Such traders are addicted to trading. The fact is that some days offer few if any trading opportunities. The trader who wishes to preserve capital and avoid losses as well as unnecessary commission charges should understand that trading, other than mechanical day trading, is not an everyday event. There will be days when no trades are indicated. This is for the best.


Specialise



Successful trading is a time-consuming undertaking that requires close attention. Which is why many market masters specialize in certain markets. In most cases, successful trading requires diligence, follow-through and persistence. Because most trading techniques require close attention, traders should not be involved in too many markets at one time.
I suggest that five to seven markets are sufficient for most traders. In fact, for new traders, I recommend specialising in one or two markets and attending to them thoroughly to develop your skills and increase your overall profits.


Begin with sufficient capital



Perhaps one of the worst blunders that any trader could commit is to trade with insufficient capital. Virtually all the market masters agree on this point. The argument may be made that the futures trader does not need to have substantial capital in his or her account since trades are closed out at the end of the day and therefore the necessity for sufficient margin to maintain positions is eliminated.
While this may be true, those with limited funds cannot play the game as long as those with larger funds. In any venture it is important to start with sufficient capital so that the trader will not feel pressured to perform and can allow the particular trading system or methods sufficient opportunity to ride through periods of poor performance.


Use news to your advantage


Many a trader has learned the hard way that following the news frequently leads to losses. However, I have discovered ways in which the trader can use the fundamental news or developing international, domestic or political news to his or her advantage.
Do not be a follower of the news; rather 'fade' the news. Use the news to exit positions that you probably established before the news became public knowledge. I firmly believe in the old market dictum: Buy on rumor, sell on news.
On an intra-day basis, markets are very sensitive to news well before the news is known by most traders. Insiders buy and sell on expectation, sometimes based on rumor, frequently based on fact. They establish positions before the general public is aware of the news; once the news has become public knowledge, they take advantage of the surge or the drop in prices to exit positions.


Take advantage of brief price surges


At times, markets will drop or rally quickly, seemingly in response to no news. What may be happening is a rumor on the trading floor, a large buyer or buy order, or large seller or sell order of which you are unaware. Such brief price surges or drops are opportunities for you to exit positions at a profit or to establish a new position. It is important to develop this quality as a futures trader since it is entirely consistent with the futures trading objective.


Stick to your goals


Above all, remember that as a trader you have one major goal: to make money. To do so, you must be particularly aware of your net profits at all times. My advice, which is based on many years of trading, is to set yourself specific standards and conditions under which you will begin to liquidate positions. Do so while the trend is still in your favor. You may either begin to close out your positions at that time or you may use a follow-up stop loss procedure to 'lock in' existing profits.


Use market sentiment to find short-term and day-trading opportunities


I have already discussed the importance of going against the majority opinion to find profitable trading opportunities. I believe that this is one of the most important qualities a trader can possess. While there is certainly a great deal of money to be made in trading with the existing trend, it is also important to know when the existing trend has reached a possible turning point.
One of the best ways, if not the best way of doing this, is through the use of market sentiment. The trader must also be a contrarian. This does not mean that you must buck the trend, but it does mean that you must always be aware of whether sentiment is very high or very low.
This will give you important clues as to whether you should be quick to take profits, whether you can allow profits to run and whether you should look for trading opportunities on the opposite side of the existing trend.
I have learned, after many years of trading, that the major difference between those who are successful traders and those who are not is found in their discipline, their psychological makeup and in the skills they have acquired as traders rather than in the trading systems, they use. 

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10 Must To Do Thinga When Filing Ur Income Tax Returns

With the due date of July 31 fast approaching, it is that time of the year again when the nation’s tax payers scramble to file I-T returns. After
all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit.

For financial year 2007-08, for instance, the basic exemption limit was Rs 1.45 lakh for women below 65 years of age, Rs 1.95 lakh for senior citizens and Rs 1.10 lakh for any other individual. However, for financial year 2008-09, the limit has been increased to Rs 1.80 lakh for women below 65 years of age, Rs 2.25 for senior citizens and Rs 1.50 lakh for males below 65 years.

Thus, if your income for the year exceeded the exemption limit, you will be required to file the return by the due date. "You need to file the tax return even if you are not paying any tax or even if your employer has deducted tax at source," says Ashish Kapur, CEO, Invest Shoppe India Ltd.

However, despite all the precautions taken by you, rush-hour filing may mean that you could inadvertently miss out on certain details and disclosures, and therefore be on the bad books of the taxman. If not that, you might just forget to make the most of the tax breaks available to you, thus paying more tax in the process and claiming no or less return. Here are 10 important things to do before filing your I-T return: 


Identify Sources of Income

Firstly, you need to identify your sources of income under different heads. Under the I-T Act, all incomes earned by persons are classified into five different heads, such as income from salary, income from house property, income from business or profession, income from capital gains, and income from other sources. Thus, you should identify all your incomes from different sources, just to ensure that you haven’t missed out something while filing your return.  


Refer to the Basic Documents

According to Vikas Vasal, executive director, KPMG, some basic documents/information that should be referred to while filling the return include:
· Form No 16 (issued by the employer): This shows the income from salary and tax deducted by the employer on the same.
· Summary of all bank accounts during the year: This summary gives an idea about the income earned during the year, investments
made and other expenses. This will ensure that neither any income nor any eligible deductions are left out in the return.
· Details of tax paid during the year: This is required in case the individual has paid any advance tax during the year.
· Income of a minor child: This is to be included (except in few cases) even if it is a small amount, e.g. bank interest. 

Compute Your Tax Liability

Having identified your sources of income and after referring to the basic documents, you need to compute your tax liability for the year. If you are familiar with the process and are comfortable with doing it, you can do it all by yourself. If not, you should take the help of a tax expert or a CA or some other qualified professional. This is important as a wrong computation of your tax liability can land you in trouble later on.
You also need to ensure that "if any tax is payable, the same has been paid as ‘self assessment tax’ before filing the tax return. Further, if any interest is payable for late payment of tax, then the same has also been deposited," says Vasal. 

Chose the Right Form

Once the details in respect of income and expenses are collated, you should check which tax return form is applicable to you. With the introduction of new forms, based on the nature of income earned during the year, you should select the right income-tax form.
For example, there are two I-T return forms -- ITR-1 and ITR-2 - available for salaried individuals at the moment, and your sources of income will decide which form to use. Use the first form if your income is from salary, pension or interest earned in the financial year, and use the second one in case of any capital gain, income or loss from house property and income from any other source. There is another form - ITR-4 - which is meant for individuals having income from a business or profession. The Tax Department will refuse to accept your form in case you have chosen the wrong one. 


Fill in Correct Personal Details

Ensure that you fill in correct personal details in the form meant for you, especially your name, address, bank account details and PAN number. Bank account details include the bank account number, type of account and the bank’s MICR code. "This is crucial, especially if you are claiming a refund. Likewise, your PAN is very important because the tax laws levy a fine for not quoting or misquoting your PAN number," says Kapur. 


Claim all Deductions

Ensure that you have, under various sections of the I-T Act, claimed all the deductions that you are eligible for. For example,
a. Under Sec 80 C - For investments made like PF, PPF, NSC, school tuition fees of children, insurance premium, investments in specified mutual funds etc.
b. Under Sec 80 G - Donations made to charitable organizations
c. Housing deduction for interest on housing loan etc.

Information of Specified Investments/ Exempt Income

You also have to fill in information in respect of specified investments, as per prescribed limits, such as:
# Property bought or sold in excess of Rs 30 lakh
# Mutual funds, in excess of Rs 2 lakh
# Cash deposits in excess of Rs 10 lakh
# Credit card payments in excess of Rs 2 lakh
# Bonds etc in excess of Rs 5 lakh
It is also important to know that certain income that is exempt (i.e. income which is not taxable) is also required to be disclosed in the I-T return form. For example, dividend received and receipt of PF balance, among others. Not disclosing these incomes may land you in trouble also.

Claiming a Loss

If you are planning to claim a loss in the income-tax return, which you would like to carry forward, the same can be done, only if the return is filed by the due date. If this filing deadline is not met, then the loss claimed would not be allowed to be carried forward for future set off against income.

File By Due Date & In the Right Tax Jurisdiction

After the tax return is filled in, the next step is to file it appropriately, by the due date. For individuals having salary and interest income only, the due date of filing the tax return for the financial year 2008-09 is July 31, 2009. The return may be filed either electronically or in printed form. In few cases, even the electronically-filed return has to be filed in printed form within a given time period.
"One must also ensure that the return is filed with the right tax officer (tax jurisdiction). This is determined based on the address of the individual. In case of salaried employees, the jurisdiction is determined by particulars of the employer," informs Vasal.
The proof of filing the return is the acknowledgement, which is stamped and signed by the tax officer and a copy is returned to the individual.
One important thing to remember is whether it is electronic filing or paper filing, now individuals do not have to attach any document or attachment with the return of income.

Maintain Documents For Future Reference

The documents based on which the return is prepared may be requested at a later stage by the Income Tax Officer to check the correctness of the claims made. Failure to submit details may lead to disallowance of the deduction claimed, resulting in an increase in the tax liability or a decrease in refund. "Hence, it is advisable that all the documents required to substantiate the return are maintained by the tax payer for future reference," says Vasal.
These are the few important points which you should bear in mind while filing your return. The golden rule is to be organised in your paper work and be timely in paying tax and filing the tax return. 

          

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ORIGIN AND DEVELOPMENT OF STOCK EXCHANGE

Origin and Development of Stock Exchange ..

Many millions of people have a personal interest in what happens at a stock exchange.Some are directly concerned because they are part owners of companies through stock,others are holders of the government and other listed securities and yet another group are holders of insurance policies,since insurance companies invest much of their assets in listed securities.
         
                Stock exchange or bourse is a mutual organization which provides facilities for stock brokers and traders, in trading company stocks and other securities, and for the issue of redemption of securities and other financial tools and capital events like the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less linked to such a physical place. Electronic networks run modern markets are, providing them great speed and cost of transactions. Stock exchange is often called the most important element of a stock market. The Demand and Supply in the stock markets is attracted by number of factors that affect the price of stocks.

                      History of stock exchanges:
        In 12th century France, the courratiers de change were concerned with managing the debts of agricultural communities on behalf of the banks and these men also traded in debts. These men were the first brokers.

In the middle of the 13th century, Venetian bankers traded in government securities. In 1351, the Venetian Government outlawed spreading rumors about lowering the price of government funds. Because of this rumor people in Pisa, Verona, Genoa and Florence also started trading in government securities which was possible because there were independent city states ruled by a council of powerful citizens during the 14th century.

                  Raising capital for businesses:
          The Stock Exchange helps current and newly-formed companies raise capital for building and expanding their business through selling shares to the investing public.

                  Mobilizing savings for investment:
          When people draw their savings and invest in shares, it leads to a more balanced allotment of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized to promote business activity that benefits several economic sectors like agriculture, commerce and industry, resulting in a stronger economic growth.

            Creating investment opportunities for small investors:
        The Stock Exchange provides opportunity for small investors like the big investors to own shares of the same or different companies.

       Government capital-raising for development projects:
         Governments at various levels may decide to borrow money for financing infrastructure projects like sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds are raised through the Stock Exchange where public buy them, thus loaning money to the government. The issuance of such municipal bonds can prevent the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

                       Listing requirements:
Listing requirements are the set of conditions forced by any given stock exchange upon companies that want to be listed on that exchange.

                 Requirements by stock exchange:
For companies to have their stock and shares listed at the stock exchange have to meet certain requirements of the exchange. But requirements vary in different exchanges.

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Increase profits with Business Financial Intelligence

Profit, simply put, is the gap that exists between a firm’s revenues and its expenditure. So, as long as the company is able to increase its revenues at a certain rate and its expenditure increase at an equal or lesser rate, the company’s profits are likely to improve – this is a layman view of things. Revenues are, in turn, dependent on volume and price.

Now, in a recessionary economy, there is a sure slump or stagnation expected in demand for almost all types of goods and services, so the volume is unlikely to go up. The prices can only go down in midst of low demand and competition so both the multipliers on which revenues depend are likely to shrink i.e. most companies are bracing for a deceleration, if not, decline in revenues.

However, this is where the management has to show its knowledge and skills to the stakeholders – ok, we know that there is a crisis situation but that is what we were hired for….if it were all smooth and easy, why would professional management ever be required…

This is where cost-cutting, production efficiency and smarter financial management can help. Increasingly, business analysis and financial benchmarking tools such as fintel’s Business Scorecard and Industry Metrics are being used by industry leaders seeking to sustain and enhance profitability. By highlighting areas of operational and financial inefficiencies, and presenting industry benchmarking and best practices data, these financial intelligence tools are helping managers to control costs and thus, maintain or even enhance the gap between revenues and expenditures.

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India's most admired entrepreneurs

The leadership, diligence, foresight and wisdom that a great entrepreneur demonstrates can help shape a company's -- even a nation's -- destiny. Indian corporate history is replete with business icons who have changed the way the world looks at India, and helped shape a new future for the nation.
But before we move on further, here is a caveat: This list of India's corporate giants is by no means complete. Nor have these Indian business icons been ranked. Their pictures have been arranged in random order. Also, stalwarts like JRD Tata, Dhirubhai Ambani, G D Birla and others who are not amongst us today have not been mentioned in the slide show.
Here's a list of some of India's most admired entrepreneurs. Do share your thoughts with us on the message board below.
Ratan Tata
Ratan Naval Tata has been in the news for the past few days due to the unseemly controversy over the Nano car plant in Singur, West Bengal.
The 70-year-old is the chairman of the Tata Group, which is one of India's largest conglomerates.
A bachelor, Tata is one of the most admired businessmen not just in India but the world over. He has been at the helm of the Tata empire since 1991.
Image: Ratan Tata, chairman of one of India's largest conglomerates, the Tata Group. 



     
N R Narayana Murthy Nagavara Ramarao Narayana Murthy is the co-founder, non-executive chairman and chief mentor of India's best known software firm, Infosys Technologies Ltd.
Murthy is a globally known and highly regarded entrepreneur.
Image: N R Narayana Murthy, chief mentor and non-executive chairman of Infosys Technologies.




Azim Premji Azim Premji is the chairman Wipro, India's second largest software firm after Tata Consultancy Services.
Premji is credited with transforming Wipro, his family's vegetable oil business, into one of the world's foremost software company.
Although one of the richest Indians, he flies economy class and is happiest when hiking, reading or discussing the foundation he has set up to promote primary education.
Image: Wipro chairman Azim Premji.





Mukesh Ambani Reliance Industries chairman Mukesh Ambani is, according to
Forbes the world's fifth richest man and his net worth is estimated at $43 billion.
The Indian billionaire and his younger brother parted ways after the death of their father, Dhirubhai, the patriarch of the Reliance empire.
Mukesh is currently building a $2-billion home on Mumbai's Altamount Road. 
Image: Reliance Industries chairman and managing director Mukesh Ambani.  





Anil AmbaniAnil Ambani is Mukesh's younger brother. With a net worth estimated at $42 billion, he is also the world's 6th richest man.
The chairman of the Anil Dhirubhai Ambani Group, Anil has a vast range of companies under his umbrella: Reliance Communications, Reliance Capital, Reliance Mutual Funds, Reliance Energy, etc.
He is married to former Bollywood actress Tina Munim. 
Image: Anil Ambani, Chairman of Reliance Anil Dhirubhai Ambani Group.




Sunil Bharti Mittal  Bharti Group chairman & managing director Sunil Bharti Mittal is one of India's greatest success stories. In just a period of 10 years, he has built India's largest cellular services company.
His net worth is estimated at close to $12 billion.   
Image: Bharti Telecommunications chairman Sunil Bharti Mitta





Rahul BajajPadma Bhushan awardee and Rajya Sabha member Rahul Bajaj is the chairman of Bajaj Auto.
An alumnus of Harvard Business School, Bajaj is an outspoken and fearless entrepreneur. His two sons, Rajiv Bajaj and Sanjiv, are now handling the Bajaj businesses, under his guidance.
Image: Bajaj Auto chairman Rahul Bajaj.





Anand Mahindra  A Harvard alumnus,Anand Mahindra is the vice chairman and managing director of Mahindra & Mahindra.
The 53-year-old businessman has taken his company to unprecedented heights. He is married to Anuradha Mahindra, who edits three niche magazines.
Image: Anand Mahindra, vice chairman and managing director of India's leading farm equipment and automobile maker Mahindra and Mahindra.




S 'Kris' GopalakrishnanS 'Kris' Gopalakrishnan is the co-founder and chief executive officer of Infosys Technologies Ltd.
An IIT-Madras alumnus, Gopalakrishnan is a very soft-spoken and shy person. His net worth is estimated to be around $1.4 billion. ]Image: Infosys Technologies CEO S 'Kris' Gopalakrishnan. 






Adi GodrejAdi Godrej chairman of the renowned Godrej Group, is one of India's great businessmen.
Even when India was still a closed economy, he managed to take his group to great heights. When India embraced economic reforms, he changed the way his group did business to face the challenges of changing times and needs. Godrej is also involved in philanthropy.
Image: Godrej Group chairman Adi Godrej.




Lakshmi N MittalLakshmi Niwas Mittal is the chief executive officer of the world's largest steel company, Arcelor Mittal. He is also said to be the richest Indian in the world with a net worth of $45 billion.
Although he resides in London, UK, Mittal still holds an Indian passport. He is also making big ticket investments in India. 
Image: Arcelor Mittal CEO Lakshmi Mittal.




Kumar Mangalam Birla Forty one-year-old Kumar Mangalam Birla is among the world's youngest billionaires with a net worth of $10 billion. He is the chairman of the Aditya Birla Group.
The group has giant companies like Grasim, Hindalco, Aditya Birla Nuvo, Idea Cellular and UltraTech Cement in its fold.   
Image: Aditya Birla Group chairman Kumar Mangalam Birla.




Sabeer Bhatia Sabeer Bhatia co-founded Hotmail, one of the first e-mail services on the Internet, along with Jack Smith.
Later he sold it to software giant Microsoft for $400 million. 
Image: Hotmail founder Sabeer Bhatia.




Uday Kota Uday Kotak is managing director of Kotak Mahindra Bank.
His wealth is estimated to be at around $2.3 billion. 
Image: Kotak Mahindra chairman Uday Kotak. 





Tulsi TantiTulsi Tanti is the chairman of Suzlon Energy, a wind power major.
Years ago when as a textile businessman, Tanti was facing huge and ever-rising power costs, he chanced upon a solution in the 'wind.' He commissioned a wind energy solution for his company a decade back. Convinced about the economics of the deal, he later decided to venture full-steam into the business.
A commerce graduate and a diploma holder in mechanical engineering, Tanti, has built an empire in the wind energy business.
Suzlon Energy is the sixth largest wind energy company in the world and the largest in Asia. 
Image: Tulsi Tanti, chairman, Suzlon.




Malvinder SinghMalvinder Mohan Singh is the elder son of the iconic Parvinder Singh who turned Ranbaxy from a middling Indian company into a growing multinational giant.
He is the grandson of the founder of Ranbaxy Laboratories.
In June, 2008, Malvinder stunned the nation by marking the largest ever deal in Indian pharmaceuticals industry. Japanese drug firm Daiichi Sankyo acquired a majority stake of more than 50 per cent in domestic major Ranbaxy. Under the deal structure that would create the 15th biggest drugmaker globally, the Japanese firm would acquire the entire 34.82 per cent stake in the Gurgaon-based firm from its current promoters Malvinder Singh and family.

Image: Ranbaxy Laboratories CEO Malvinder Singh.




Rajiv Bajaj Rajiv Bajaj is the managing director of Bajaj Auto.
The Pune-based Bajaj Auto is one of India's largest two- and three-wheeler manufacturer.   
Image: Bajaj Auto managing director Rajiv Bajaj.




Jeh WadiaJeh Wadiais the managing director of Go Air. The 34-year-old is the youngest son of entrepreneur Nusli Wadia. Jeh's brother Ness is the managing director of Bombay Dyeing.
Image: Wadia Group chairman Jeh Wadia.




Gautam SinghaniaGautam Singhania is the managing director of the Raymond Group.
Raymond is one of India's largest clothing firm. 
Image: Raymond Limited chairman Gautam.





Yash Birla Yash Birla is the chairman of the Yash Birla Group.
The group is a part of the Birla legacy, one of India's oldest, largest and most reputed business groups. The Yash Birla Group is acting as a catalyst to India's economic growth. A conglomerate of 14 companies, the group has interest in auto-components & engineering; power solutions; textiles; lifestyle; and infrastructure & real estate
Image: Industrialist Yash Birla.




Kishore Biyani  Kishore Biyani is the chief executive officer of Future Group. He is the pioneer of the retail boom in India.
His Big Bazaar chain of departmental stores is the fastest growing in India. 
Image: Future Group CEO Kishore Biyani.




Jignesh Shah  Jignesh Shah is the vice chairman Multi Commodity Exchange of India (MCX).
He is also the chairman and group CEO of Financial Technologies India Ltd.   Image: MCX CEO Jignesh Shah




Naveen Jindal  Thirty eight-year-old Naveen Jindal is a Member of Parliament and an entrepreneur with interests in the steel and power sectors. He handles the Jindal Group.
The group's operations are spread over Haryana, Mahatashtra, Madhya Pradesha and Chhattisgarh. 
Image: Prime Minister Manmohan Singh  presents the FICCI annual award to Navin Jindal  of Jindal Steel and Power Ltd.




Brijmohan Lal Munjal The Munjals-led Hero Honda Motors Ltd is the world's largest manufacturer of motorcycles. Brijmohan Lal Munjal is the chairman of the company, while his son, Pawan, is managing director and CEO of the auto major. 
Image: Hero Honda Motors Ltd chairman Brijmohan Lall (R) and managing director and chief executive officer of HHML, Pawan Munjal     

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India's Top Business Women:

India's Top Business Women:




Entrepreneur Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Bioon Ltd., who became India's richest woman in 2004 (an estimated Rs.2,100 crore )~US$480 million), was educated at the Bishop Cotton Girls School and Mount Carmel College in Bangalore. She founded Biocon India with a capital of Rs.10,000 in her garage in 1978 - the initial operation was to extract an enzyme from papaya. Her application for loans were turned down by banks then - on three counts - biotechnology was then a new word, thecompany lacked assets, and (most importantly) women entrepreneurs were still a rarity. Today, her company is the bigget biopharmaceutical firm in the country. In 2006, Shaw caused a few Page 3 ruffles after a much hyped photograph showed her in an embraceand lip-lock with senior BJP leader Vasundhara Raje Scinidia.






Ekta Kapoor, creative head of Balajji Telefilms, is the daughter of actor Jeetendra, and sister of actor Tushar Kapoor. She has been synonymous with the rage of soap operas on Indian TV, after her most famous venture 'Kyunki Saas Bhi Kabhi Bahu Thi', which started airing on STAR Plus in 2000. Ekta dominates Indian television, producing more than eight television soaps. At the 6th Indian Telly Awards 2006, she bagged the Hall of Fame award for her contributions. Most of her creations begin with the letter'K' due to her superstition that it brings her good luck.



Sunita Narain, an environmentalist and political activist as well as a major proponent of the Green concept of sustainable development, was awarded the Padma Shri by the Government of India in 2005. Narain, who has been with the India-based Centre for Science and Environment since 1982, is currently the director of the Centre, and the director of the Society for Environmental Communications, and publisher of the fortnightly magazine, 'Down to Earth'.



Neelam Dhawan, Microsoft India managing director, leads Microsoft's sales and marketing operations in the country. A Stephenian (graduated in 1980), she passed out of Delhi's Faculty of Management Studies in 1982. Back then, while she was keen to join FMCG majors like Hindustan Lever and Asian Paints, both companies rejected Dhawan as they did not want to appoint women for marketing.



Naina Lal Kidwai was the first Indian woman to graduate from the Harvard Business School. Fortune magazine listed Kidwai among the World's Top 50 Corporate Women from 2000 to 2003. According to the Economic Times, she is the first woman to head the operations of a foreign bank in India (HSBC). Kidwai was awarded the Padma Shri this year.




Sulajja Firodia Motwani, Joint Managing Director of Kinetic Engineering Ltd., is in-charge of the company's overall business developmental activities. She is also the Director of Kinetic Motor Company Limited and Kinetic Marketing Services Limited. A fitness freak and avid sports enthusiast, she even played badminton at the national level. The magazine 'India Today' has honoured her with the title of business 'Face of the Millennium'. She was ranked among the top 25 business entrepreneurs of the country,and was also presented with the Society Young Achiever's Award for Business in 2002. The same year, she was chosen as the 'Global Leader of Tomorrow' by the World Economic Forum.




Mallika Srinivasan, Director of TAFE India (her husband is automobile tycoon Venu Srinivasan, CMD of TVS Motors) was named Businesswoman of the year in 2006. When she joined the company in 1986, its turnover was Rs.85 crore, and at the time of her award,TAFE and its allied companies were earning revenues of Rs.2,900 crore. A couple of years after her marriage in 1982, and less than a year after her daughter was born, Srinivasan went to Wharton to pursue her MBA. It's no surprise that TAFE also runs hospitals and schools. A serious votary of woman power, Srinivasan says women's contribution to society has often been underestimated.



Dr. Jatinder Kaur Arora, an outstanding scientist from Punjab, was conferred a national award for her work on women's development through science and technology. Dr. Arora, perhaps the first scientist to get such an award, is a doctorate in microbiology and has a brilliant academic record. An unlikely and fairly new contender on this list, she is serving as a joint director in the Punjab State Council for Science and Technology at present.



Indra Krishnamurthy Nooyi, chairman and executive officer of PepsiCo, was according to Forbes magazine's 2006 poll, the fourth most powerful woman in the world. She was also named the #1 Most Powerful Woman in Business in 2006 by Fortune magazine. She got her bachelor's degree from Madras Christian College in 1974, entered the Business Diploma programme at the Indian Institute of Management, Calcutta, and later moved to the US to attend the Yale School of Management. Nooyi serves on the board of directors of several organizations, including Motorola, the Federal Reserve Bank of New York, the International Rescue Committee, and the Lincoln Center for the Performing Arts. Among her friends are former Secretary of State Henry Kissinger, who describes her asa 'wild New York Yankees fan'.

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Lakshmi Mittal - Success Story

 

Lakshmi Mittal - Success Story
Born: June 15, 1950, Sadulpur, Rajasthan, India.

Age: 59

Country Of Citizenship: India

Residence: London , United Kingdom, Europe & Russia

Religious stance: Hinduism

Occupation: Chairman & CEO of Arcelor Mittal

Net worth: $51.0 billion USD

Fortune: Inherited and growing

Source: Steel

Industry: Manufacturing

Website: mittalsteel.com

Marital Status: Married, 2 children

Education: St Xavier's College Calcutta, Bachelor of Arts / Science.

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Lakshmi Narayan Mittal (born June 15, 1950) is a London-based Indian billionaire industrialist, born in Sadulpur Village, in the Churu district of Rajasthan, India, and residing in Kensington, London. He is the fifth richest person in the world, with a personal fortune of US$32.0 billion according to Forbes 500.The Financial Times named Mittal its 2006 Person of the Year. In May 2007, he was named one of the "100 most influential people" by Time magazine.

Lakshmi spent his first years in India, living with his extended family on bare floors and rope beds in a house built by his grandfather. His family, from the Marwari Aggarwal castel, was from humble roots; his grandfather worked for the Tarachand Ghanshyamdas Poddar firm, one of the leading Marwari industrial firms of pre-independence India. They eventually moved to Calcutta where his father, Mohan, became a partner in a steel company and made a fortune.

Lakshmi was a keen student and his classmates knew him as a sharp student who was good with numbers. He graduated at the top from St. Xavier's College in Calcutta (Now known as Kolkata) with a Bachelor of Commerce degree in Business and Accounting in 1969.

Lakshmi Mittal began his career working in the family's steelmaking business in India, and in 1976, when the family founded its own steel business, Mittal set out to establish its international division, beginning with the buying of a run-down plant in Indonesia. Shortly afterwards he married Usha, the daughter of a well-to-do moneylender. In 1994, due to differences with his father and brothers, he branched out on his own, taking over the international operations of the Mittal steel business, which was already owned by the family. The family of Mittal never spoke to the public about the reasons for the split, although, there were rumors it was due to financial instablity between the brothers.

Controversy erupted in 2002 as Plaid MP Adam Price exposed the link between U.K. prime minister Tony Blair and steel magnate Lakshmi Mittal in the Mittal Affair, also known as 'Garbagegate' or Cash for Influence. Mittal's LNM steel company, registered in the Dutch Antilles and maintaining less than 1% of its 100,000 plus workforce in the U.K., sought Blair's aid in its bid to purchase Romania's state steel industry. The letter from Blair to the Romanian government, a copy of which Price was able to obtain, hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.

 

The letter had a passage in it removed just prior to Blair's signing of it, describing Mittal as "a friend."

In exchange for Blair's support Mittal, already a Labour contributor, donated £125,000 more to Labour party funds a week after the 2001 U.K. General Elections, while as many as six-thousand Welsh steelworkers were laid off that same year, Price and others pointed out. Mittal's company, then the fourth largest in the world, was a "major global competitor of Britain's own struggling steel industry, Corus, formerly known as British Steel." Corus and Valkia Limited were two of the primary employers in south Wales, particularly in Ebbw Vale, Llanwern, and Port Talbot.

Since 2005, Mittal has been the richest person residing in the United Kingdom. He is the President of the Board of Directors and CEO of Arcelor Mittal; Arcelor Mittal is the world's largest producer of steel, with assets in France, Belgium, Romania, Bosnia-Herzegovina, South Africa, Poland, Czech Republic, Indonesia, Kazakhstan, Canada, Bulgaria, United States and Brazil. On July 13, 2005 it was announced that he had donated £2 million to the Labour Party, and on January 16, 2007 it was announced that he had donated a further £3 million. Although Mittal has been living abroad for many years, he claims he will remain an Indian.

In March 2007, Mittal was reported to be the 5th wealthiest person in the world by Forbes Magazine (up from 61st richest in 2004). The Mittal family owns 44% of Arcelor Mittal, the world's largest steel company. His residence at 18-19 Kensington Palace Gardens was bought from Formula One car racing boss Bernie Ecclestone in 2004 for £57.1 million ($105.7 million), the world's highest price ever paid for a house. Formerly, this house was the residence of Paul Reuter, the founder of the Reuters news service.

Mittal has two children. His son, Aditya Mittal, is the CFO of Arcelor Mittal. Mittal paid over £30 million to host his daughter Vanisha's wedding celebration in Vaux le Vicomte on 22 June 2004 and an engagement ceremony at the Palace of Versailles on 20 June 2004, the world's most expensive wedding ever. He even hosted a Bollywood night where superstars like Rani Mukerji, Saif Ali Khan, Shahrukh Khan and Aishwarya Rai performed. Kylie Minogue also sang on stage.

Mittal's house in Kensington, London is decorated with marble taken from the same quarry that supplied the Taj Mahal. The extravagant show of wealth has been deemed the "Taj Mittal."

Recently, Mittal has emerged as a leading contender to buy Barclays Premiership clubs Wigan and Everton, but has so far refused to comment.

As of 8th October 2007, the 44.79% stake which the Mittal family have in Arcelor-Mittal was worth $47.159 billion dollars, down from $48.4 billion in late September. This makes him the world's 5th wealthiest man after Bill Gates, Warren Buffet, Carlos Slim and Ingvar Kamprad. As of 11th October 2007, his stake was worth $50.56 billion dollars, making him the fifth person in the world to have more than $50 b wealth.

After witnessing India win only one medal, bronze, in the 2000 Olympics, and one medal, silver, at the 2004 Olympics, Mittal decided to set up Mittal Champions Trust with U$9 million to support 10 Indian athletes with world-beating potential.

For Comic Relief 2007, he matched the money raised (~£1 million) on the celebrity special BBC programme, The Apprentice.

 

 

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Accounting homework help, finance homework help

The guys at ACCOUNTINGHOMEWORKTUTORcom are one of the pioneers in the field of Accounts and Finance Assignments help. They provide the guidance in the areas Accounting homework help & financial management help, cost accounting homework, lifo, fifo, break-even point, decision making, probability & statistics helpers. Marketing Essay writing, research writing, dissertation writers services also provided besides case studies, projects, reports & powerpoint presentations & excel calculations.

The site ACCOUNTINGHOMEWORKTUTORcom provides Marketing, Stats, Accounts, Management, Homework solutions, Assignment help for five areas viz., Accounting Homework Help, Finance Assignment help, Case study help, Project reports & presentation help, Marketing homework help, essay writing services, Dissertation writing, Stats Help, Probability help, SPSS Research help, SPSS Projects solutions, Excel Reports & presentations, case studies help, company reports & comparisons studies, economics homework help.

If you stuck on accounting or finance or case studies or essays or reports & presentations work then ACCOUNTINGHOMEWORKTUTORcom are the best guys on internet. If you are unable to open the site then simply put a . between ACCOUNTINGHOMEWORKTUTOR and com

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personal financing in simple statements

I am not sure how true it is but the below are claimed to be from Warren Buffet
worth reading once, personal financing in simple statements. hope u like it

Spending: If you buy things you don't need, you'll soon sell things you need.
Savings: Don't save what is left after spending; spend what is left after saving.
Hard work: All hard work brings profit; but mere talk leads only to poverty.
Laziness: A sleeping lobster is carried away by the water current.
Earnings: Never depend on a single source of income.
Borrowings: The borrower becomes the lender's slave.
Accounting: It's no use carrying an umbrella, if your shoes are leaking.
Auditing: Beware of little expenses; a small leak can sink a large ship.
Risk-taking: Never test the depth of the river with both feet.
Investment: Don't put all your eggs in one basket.

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Ratan Tata - Story Of Achieving The Impossibles

Ratan Tata - Story Of Achieving The Impossibles



Ratan Tata, 71, Chairman of the Tata group, made it to the headlines today with fulfillment of promise to deliver, what he has been calling the ‘people's car’ at just Rs100,000 or slightly above US$ 2000 dollar at factory gates.

Tata Motor is currently manufacturing the Nano from its interim facility at Pantnagar which has a capacity to manufacture 50,000 cars a year.However, it is likely to be raised to 2.5 lakh units once its new plant at Sanand in Gujarat starts in December.

In Marketing front , 2.03 lac initial bookings generated an income of INR 2500 Crore ( Approx half a billion USD) and around 1,00,000 car will be delivered by the last quarter of 2010. However,the one-lac pricing is applicable to the first 1 lac customers only.

The Group is operating in the following 7 business sectors :


1.Information system And Communications


2.Engineering And Automotive


3.Metals Amd Composites


4.Hotel,Property ,Financial And Consulting Services


5.Energy


6.Consumer products


7.Chemicals


And global presence includes the following locations:

1.Asia Pacific

2.China

3.Europe

4.Middle east

5.North America

6.South America

7.United Kingdom

The Car Saga


it started more than 10 years ago with a Truck manufacturing company venturing into the most premium and prestigious busiess sector- car manufacturing, entirely on its own, without any technical assistance from out side.

Stupendous success of the brand Indica not only ensured a quantum leap for Tata Group making it a global corporation today ,but also  laid the foundation of a new India- aspiring to be a super power in a decade or so.

The Dream car Nano

While talking to Economics Times  during Nano's launch at Indian Auto Expo 2008 , Ratan Tata  disclosed - how the idea of making Nano, "The Dream Car"  came to his mind .

Few years back he noticed that ,there were three or four family members on a scooter, the kid standing in the front, the guy driving the scooter and the wife sitting in side saddle holding a little kid.

It bothered him a lot and the concept of Nano was born in his mind - the concept to make a cheap and affordable car  for the vast Indian population - today it's a reality. Awesome !!!


You know ,industry laughed at his idea - just ruled it out saying that Ratan Tata had gone crazy -"How dare he is to plan such a move ,which even the  the established car manufacturers with more than hundred years of expertise do not consider feasible?"

In an interview given to Christabelle Noronha he said "I enjoy thinking about impossible things, and how I can perhaps actually make them possible." - Yes Mr Tata , lets take out the word perhaps from your statement ,because you always make them possible !!!


In the same interview, he had explained how the figure INR 1 ,00,000 was frozen as the offer price for Nano.

While concluding, let me introduce you to the technocrats , who actually built it  along with their team members - through hard work , dedication  and a divine interconnectedness

1.Girish A. Wagh,

the man in charge of the small car project.He who was also very closely involved with the design of the Ace, a four-wheeler that serves as a load carrier.

2.E. Balasubramoniam, the Head of Sourcing for the project. The graduate from IIT Madras is 45 years old and was earlier with Maruti Udyog (now Maruti Suzuki).

3.Nikhil Jadhav, 29,  an alumnus of IIT Bombay, the designer on the small car project.

4.Abhay M. Deshpande ,in charge of vehicle integration, vehicle performance and chassis design.

5.Rakesh Mital, 44, in charge of Vendor development . He was earlier with Yamaha Motors
 

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10 calculations to know

Managing money can involve calculations to understand the worth of an investment. To arrive at a result, calculations can be done in a different way or by using a different formula.

Even the same formula can be used differently to arrive at a certain result. Here are a few commonly used money management formulas. Use an excel sheet to do these.

1. Compound Interest


I want to take a loan of Rs 1 lakh to buy a used car. How much will the car cost me at an annual interest rate of 8 per cent for four years?
The compound interest formula can be used here to calculate the final cost, which would include the loan amount and the interest paid. The amount that is actually paid for Rs 1 lakh is Rs 1,36,048.90. The total amount of interest charged for borrowing Rs 1 lakh is Rs 36,048.90.

Formula: Future value = P(1 + R)^N

Type in: =100000(1+8%)^4 and hit enter. P: amount borrowed; R: rate of interest; N: time in years.

Also used for: Calculating the maturity value on lumpsum investment (bank fixed deposits and National Savings Certificate, for example) over a fixed period at a certain rate of interest.


2. Compound Annualised Growth Rate
   
I had invested Rs 1 lakh in a mutual fund five years back at an NAV of Rs 20. Now the NAV is Rs 70. How should I calculate my returns on an annual basis?

Compound annualised growth rate (CAGR) will be used here to calculate the growth over a period of time. The gain of Rs 50 over five years on the initial NAV of Rs 20 is a simple return of 250 per cent (50/20 * 100). However, it should not be construed as 50 per cent average return over five years.

Formula: CAGR = {[(M/I)^(1/N)]  1} * 100

Type in: =(((70/20)^(1/5))-1)*100 and hit enter. M: maturity value; I: initial value; N: time in years. CAGR here is 28.47%.

Also used for: Calculating the annualised returns on a lumpsum investment in shares.

3. Internal Rate of Return


   
I paid Rs 18,572 every year on a moneyback insurance policy bought 20 years back. Every fifth year, I received Rs 40,000 back and Rs 4.5 lakh on maturity. What was my rate of return?

The internal rate of return (IRR) has to be calculated here. It is the interest rate accrued on an investment that has outflows and inflows at the same regular periods.

In the excel page type Rs 18,572 as a negative figure (-18572), as it is an outflow, in the first cell. Paste the same figure till the twentieth cell.

Then, as every fifth year has an inflow of Rs 40,000, type in Rs 21,428 (40,000-18,572) in every fifth cell. In the twentieth cell, type in 18572. In the twenty first cell, type in Rs 4,50,000, which is the maturity value of the policy.

Then click on the cell below it and type: = IRR(A1:A21) and hit enter.

5.28% will show in the cell. This is your internal rate of return.

Also used for: Calculating returns on insurance endowment policies.


4. XIRR


   
I bought 500 shares on 1 January 2007 at Rs 220, 100 shares on 10 January at Rs 185 and 50 shares at Rs 165 on 18 May 2008. On 21 June 2008, I sold off all the 650 shares at Rs 655. What is the return on my investment?

XIRR is used to determine the IRR when the outflows and inflows are at different periods. Calculation is similar to IRR's. Transaction date is mentioned on the left of the transaction.

In an excel sheet type out the data from the top most cell as shown here. Outflows figures are in negative and inflows in positive. In the cell below with the figure 4,25,750, type out =XIRR (B1:B4,A1:A4)*100

Hit enter. The cell will show 122.95%, the total return on investment.

Also used for: Calculating MF returns, especially SIP, or that for unit-linked insurance plans.

 

5. Post-Tax Return


   
My father wants a bank FD at 10 per cent return for five years. He pays income tax. What will be the returns?

The post-tax return has to be calculated here. The idea is to know the final returns on a fully taxable income. Interest income from the bank is taxed as per your tax slab.

Formula: ROI  (ROI * TR)=Post-tax return

Type in: =10  (10 * 30.9%) and hit enter. You will get 6.91%

ROI: rate of interest; TR: tax rate (depends on tax slab)

Also used for: Calculating post-tax returns of national savings certificates, post-office time deposits, and Senior Citizens' Savings Scheme.

6. Pre-Tax Yield


   
My brother says that the investment in public provident fund (PPF), which gives 8 per cent, is the best. Isn't 8 per cent a low rate of return?

An investment's pre-tax yield tells us if its return is high or low. The return on PPF (8 per cent) is tax-free. Also, this has to compared with returns of a taxable income to estimate its worth. For someone paying a tax of 30.9 per cent, the pre-tax yield in PPF is 11.57 per cent. At present, there is no fixed, safe and assured-return option that has 11.57 per cent return and a post-tax return comparable to PPF's 8 per cent.

Formula: Pre-tax yield = ROI / (100-TR)*100

Type in: =8/(100-30.9)*100 and hit enter. You will get 11.57%. ROI: rate of interest, TR: tax rate, (depends on tax slab)

Also used for: Calculating the yield on an Employees' Provident Fund or any other tax-free instrument.

7. Inflation

   
My family's monthly expense is Rs 50,000. At an inflation rate of 5 per cent, how much will I need 20 years hence with the same expenses?

The required amount can be calculated using the standard future value formula. Inflation means that over a period of time, you need more money to fund the same expense.

Formula: Required amt.=Present amt. *(1+inflation) ^no. of years

Type in: =50000*(1+5% or .05)^20 and hit enter. You will get Rs 1,32,664 as the answer, which is the required amount.

Also used for: Calculating maturity value on an investment.


8. Purchasing Power


   
My family's monthly expense is Rs 50,000. At an inflation rate of 5 per cent, how much will be the purchasing value of that amount after 20 years?

Inflation increases the amount you need to spend to fetch the same article and in a way reduces the purchasing power of the rupee. Here, Rs 50,000 after 20 years at an inflation of 5 per cent will be able to buy goods worth Rs 18,844 only.

Formula: Reduced amt.= Present amt. / (1 + inflation) ^no. of yrs

Type in: =50000/(1+5%)^20 and hit enter. You will get Rs 18,844, which is the reduced amount.

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