news.............

1. RBI PROJECTS HIGHER INFLATION EVEN AS RISKS TO
“Progress is often GROWTH EMERGE
equal to the difference There were no surprises in the Reserve
between mind and Bank of India‘s (RBI) mid-quarter review
mindset.” of monetary policy on Thursday. That is
seen from the behaviour of the rate-
sensitive sector indices in the stock
INSIDE THIS market. The index that fell the most on
Thursday was the Bombay Stock
ISSUE: Exchange‘s (BSE) FMCG index, followed
by the IT index. The rate-sensitives didn‘t
RBI’s MID QUARTER do too badly. True, BSE‘s auto index
also fared badly, but that was mainly on
REVIEW account of Maruti Suzuki India Ltd, which
was beaten down on fears of a strong
CORPORATE watch yen. Clearly, a 25 basis points (bps) hike in the repo rate had already been factored
into prices. Indeed, the BSE Bankex is actually up a bit this week. A few analysts
ECONOMY watch believe the revision of the expected inflation rate to 8% in March from 7% earlier is an
indication of hawkishness on RBI‘s part. We would think it‘s merely an
INDUSTRY watch acknowledgement of reality. Nevertheless, it does underline the fact that high inflation
is not going to go away in a hurry.
FACT OF WEEK
The headline inflation number for April may be lower, thanks to a high base, but that
INTERVIEW base effect is going to wear off soon, as inflation fell from 10% in July to 8.8% in
August. Add to that pressures due to higher crude oil prices, with reports saying that
ZARGONOMICS retailers are facing losses of Rs15.79 per litre of diesel sold. The chances are the
government will soon be forced to raise diesel rates, perhaps after the state elections.
ENTREPRENEUR And then we have the pressures on the core inflation in non-food manufactured
products—the RBI review says, ―Producers are able to pass on higher input prices to
consumers‖—in other words, they now have pricing power and will pass on higher
ANSWERS TO BIZ WIZ-9 input costs. Small wonder then RBI‘s guidance says it is likely to persist with the
current anti-inflationary stance, which means more rate hikes in future. How much
more? Taking the one-year OIS (overnight indexed swap) at the current rate of
around 7.4%, or around 65 bps more than the current repo rate of 6.75%, which
means the market is expecting a further 50-75 bps hike in the repo rate over the next
year.
At the same time, RBI has also acknowledged that risks to growth are emerging,
in particular in investment demand. It says that the pace of credit growth has
moderated since December. And finally, RBI echoes the widespread scepticism about
the projected fiscal deficit for the year, when it says ―this will materialize only if
commitments to contain subsidies are adhered to‖. For the equity markets, the central
bank‘s review offers little comfort, as it paints a picture of both high inflation as well as
challenges to growth.

2. THE DERRICK
CORPORATE WATCH
INDIA WILL BE KEY PART OF TOYOTA'S GLOBAL VISION PLAN
Toyota Kirloskar Motor's recent move to increase capacity at
its Bangalore facilities is keeping in line with its parent's global
vision for emerging markets. The idea is to generate demand
from region-specific models which will include compact cars,
and vehicles such as the Innova and Fortuner from the IMV
(innovative international multipurpose vehicle) platform. The
company has earmarked a bigger script for India which will be
the launch pad for the Etios compact in June. Brazil would see
something similar where India will supply transmissions as
part of the global business plan for the Etios. This is precisely
what Toyota had done with the IMV model where Thailand,
Indonesia, Argentina South Africa are its production hubs which met the needs of over 100 countries. It is
only natural that India will take the role of the lead country for the Etios given the sheer size of the compact
market here coupled with the benefits of low costs and high quality. In fact, exports could also be envisaged
to South Africa while Brazil will cater to Latin America. In its global vision plan for 2015, Toyota has its goals
set for each region from Japan, China, Europe and North America to Asia/Oceania and West Asia/Latin
America/Africa. There will be greater levels of self-reliance in North America while Asia/Oceania will be key
to product development, specifically the IMV and compact car programmes. The rapid growth of China and
India has also convinced carmakers that they need to adopt region-specific strategies if they have to
succeed. The Etios is, therefore, an important chapter for Toyota as it sets about building a base in the
Asia-Pacific region with Latin America to follow in due course. Its Japanese counterpart, Honda, is also in
the same trajectory with its Brio compact scheduled for launch in Thailand and India in the coming months.
CORPORATES TAKE TO REBRANDING TO REACH TARGET AUDIENCE
Rebranding has becoming a strategy for the cororates to reach the target audience. The youth is an
important customer base, but there are other motives too. Companies are aiming create a unified brand
identity among global customers, employees and stakeholders because of their diverse businesses.
Companies are also battling clutter by distancing themselves from competitors and this is done by changing
the logo or going green. Companies also view rebranding as effective tool to draw talent and customers. A
new brand is also a springboard to respond to trouble. The Tata Nano, for instance, ditched the 'people's
car' tag to portray itself as a vehicle that is more affordable and durable. Nano is also trying to shed the bad
press it got after many of the cars caught fire. Indian companies expanding overseas think a new image is
key to their growth plans. Telecom powerhouse Bharti Airtel, for instance, rechristened itself as Airtel last
year after it acquired Zain's operations in Africa and Warid Telecom in Bangladesh. The company's aim
was to create a 'new, modern, more friendly and accessible' image in the minds of all users in these
countries. Rebranding exercises typically cost between Rs 100 crore and Rs 300 crore. However in most
cases it is a painstaking effort as companies have to first take employees and customers into confidence
before execution.

3. VODAFONE STILL BELIEVES NO TAX TO PAY
Vodafone continues to believe that it had no tax liability over its 2007 purchase of Hutchison Whampoa
Ltd's mobile business in India. Vodafone, which has been fighting a $2.5 billion tax bill in India over the
deal, stated that its position had not changed with regard to the tax case. Every adviser they have
consulted, both during the transaction and since, is in common agreement that no tax liability should
arise. India's Supreme Court will hear the tax case on July 19 and Vodafone stated it would continue to
"defend its position vigorously."
RELIANCE POWER GETS 5 HYDEL PROJECTS IN HIMACHAL PRADESH
Corporate giants like Reliance Power and Tata Power-SN Power joint venture have been allotted
hydropower projects in Himachal Pradesh. However, other companies like Larsen and Toubro (L&T), Essar
Power, Moser Baer and GVK Energy did not get any project. Reliance Power has got five out of the 18
projects for which global bids were invited by the state. One project was withheld by the government as
there was only one bidder. Reliance Power was allotted the 300 MW Purthi, 94 MW Teling and 44 MW
Shangling, all in Lahaul and Spiti district, 130 MW Sumte Kothang and 104 MW Lara Sumta projects in
Kinnaur district. Tata Power-SN Power was allotted the 236 MW Dugar project. The other companies that
got hydropower projects in the state are Capital Consortium, BMD, ABG Shipyard , AMR Mitra Joint
Venture, Bell Spun Energy, Green Infrastructure and BLA Industries. The allotted projects would generate
power with an aggregate capacity of 1,325.5 MW. Himachal Pradesh has abundant water resources with a
power potential of about 23,000 MW. About 6,672 MW have been harnessed till now by the central and
state governments, private players and joint venture companies.
CANON INDIA TO SELL 1-LAKH DIGITAL SLR CAMERAS IN 2011
In a sign of maturity of the Indian photography market, segment leader Canon is targeting to more than
double the sale of high-end digital SLR cameras to 1 lakh units this year. The company's President and
Chief executive in India stated that company is planning to sell one lakh units of digital single lens reflex
(SLR) cameras, which accrue in higher revenues. Courtesy the good numbers expected from DSLRs, the
company has also set a higher target for its overall revenues from India. The company also sells printers
and photocopiers. Canon controls over 50 per cent of the DSLR market presently and the average cost of a
single unit's sale is Rs 40,000 in the category as compared to around Rs 7,000 in the lower end consumer
digital cameras. The company's entry level offering retails at around Rs 22,500 and over 70 per cent of the
cameras sold will be in the entry level category.
HCL INFOSYSTEMS SURGES NEARLY 7% ON WINNING IAF ORDER
Shares of IT hardware firm HCL Info systems on Friday jumped by nearly 7 per cent in the morning trade on
BSE after the company bagged an Rs 300-crore order from the Indian Air Force. The company's stock
advanced by 6.61 per cent to Rs 108 on Bombay Stock Exchange, while on National Stock Exchange the
stock surged by 7.23 per cent to Rs 109 a piece. The company, had (on 18th March, 2011) received an
order from the Indian Air Force to deploy Wideband CDMA-based portable wireless network. According to
the deal, the WCDMA network will provide backbone connectivity and ensure video interactivity for video
calls, cross connectivity with other communication platforms like IP-based communication within the Air
Force Network.
HYUNDAI RECALLS 190,000 CARS IN US
South Korea's largest automaker, Hyundai Motor Co., has recalled 190,000 cars with faulty airbags in the
United States, Yonhap news agency report revealed. Hyundai recalled 190,000 Elantra passenger cars
sold between 2006 and 2008 in the US as they have defective airbag sensors. The recall is expected to
begin next month and recall repairs will be provided at dealer service centres.

4. CAIRN HEAD SAYS SEES VEDANTA DEAL DONE BY APRIL 15
Cairn Energy stated that it was hopeful of concluding a long-delayed deal to sell its Indian assets to
Vedanta Resources by April 15. Cairn Energy agreed six months ago to sell up to 51% in its Indian unit to
Vedanta, but the deal has been delayed as the government looks into issues of royalty payments. The row
has reached the cabinet which will rule on the matter. The company will stick to the April 15 deadline. Bill
Gammell, CEO of Cairn Energy stated that it's in the government's hand and the government has to take a
decision.
LOSS-MAKING COMPANIES WANT PF RELIEF
Confederation of Indian Industries (CII) has sought a relief from Employees' Provident Fund Organization
(EPFO) for loss-making companies that run their own PF trusts. As per the rule, companies that run their
own PF trusts would not get exemption if they are in the red for three consecutive years. Several firms,
including a well-known oil company, have urged EPFO to extend the benefit. But, PF officials say, the
organization will not accede to the request. Representation from CII and from several companies has
argued that though they are making losses for three years, the workers' monies are safe. However, PF
officials stated that they have made it clear to all the companies and also to CII that such a request is not in
the interest of the workers. As many as 2,775 companies, called exempted establishments in PF parlance,
enjoy a special status under which the money from their employees' provident fund is not given to EPFO,
instead invested through trusts formed by the companies. The exemption, however, can be withdrawn if a
company makes losses for three years. EPFO suspects that the loss making firms may dip into employees'
dues because of financial constraints.
VOLTAS TO FORM JV WITH GERMANY'S KION GROUP
Air conditioner maker Voltas has signed an agreement with
Germany-based Kion Group to establish a joint venture in
India for developing and servicing industrial trucks and
warehousing equipments. Voltas' material handling operations
will be integrated into a new joint venture company, where
Kion Group will hold a majority share. The new firm will be
named Voltas Materials Handling (VMH) and is expected to
start operations from April, 2011.Kion has know-how and
technological leadership in the forklift truck business, so the
partnership will help VMH further consolidate its leading
position in India.The Tata-group firm said the joint venture will
focus on the Indian market with a product range that includes
diesel/LPG and electric trucks with load capacities of 1.5 to 16 tonnes. The JV firm plans to have 25
branches and dealerships all over India. The Voltas brand will continue to expand its product range,
particularly in the warehouse-equipment sector. The partnership will ensure long-term sustainability, and we
are well positioned in the Indian forklift truck market.
TPG, SHRIRAM GROUP ACQUIRE VISHAL RETAIL FOR RS70 CRORE
TPG Wholesale Pvt. Ltd, a subsidiary of TPG VW Ltd, and Airplaza Retail
Holdings Pvt. Ltd, a company owned by the Shriram Group, have completed their
acquisition of debt-ridden Vishal Retail Ltd. The TPG-Shriram combine paid Rs70
crore to the erstwhile chairman and managing director of Vishal Retail, Ram
Chandra Agarwal, for the transfer of all assets, rights, and interests, inventories,
cash flows, store leases and liabilities, the company said on Monday in a stock
exchange filing. Vishal shares rose nearly 20% to close at Rs37.55 on Monday on
the Bombay Stock Exchange even as the exchange‘s bellwether equity index, the
Sensex, rose 1.55% to close at 18,455.69. Attempts to fund its ambitious expansion plan with borrowings
left the retailer laden with debt and inventory. As much as Rs730 crore of debt was sought to be
restructured.

5. The completion follows an announcement in September 2010 when Vishal‘s board approved a Rs100 crore
sale of assets and transfer of some liabilities to TPG and Chennai-based Shriram Group. The new structure
will see TPG Wholesale operate the back-end sourcing, merchandising, logistics and franchise operations,
while Airplaza Retail will operate the retail shops along with other franchisee partners currently operating
Vishal branded stores.
THE DERRICK
ECONOMY WATCH
UK BUSINESSES URGED TO LOOK AT EMERGING INDIAN CITIES
The UK and India have shared interest in getting the Doha round completed as it would not only help both
the economies but also improve the world GDP by $160 billion. The negotiations on Free Trade Agreement
between India and European Union were still going on, as sensitive areas need to be ironed out The
sensitive issue for India is opening up its service sector for multinational companies while in this case of EU it
is agriculture and textile the major ones among others. UK Minister for Trade and Investment, Mr Green
highlighted the need to embrace the vast opportunities to build on the vibrant, two-way relationship between
the two countries. Delhi, Mumbai, Chennai, Bengalore are already established base for business in India and
beyond but many of India's emerging cities have often been overlooked in favor of more familiar cities. The
Minister said that UK companies should delve beyond the traditional business hubs and seek out new
opportunities in these rapidly expanding cities. These cities are Coimbatore, Mangalore, Vadodara,
Visakhapatnam, Thiruvananthapuram, Kakinada, Kochi, Madurai, and Jaipur among other cities.
COMMISSION FOR FINANCIAL REFORMS GETS PM'S NOD
Prime Minister Manmohan Singh approved the formation of Financial Sector Legislative Reforms
Commission (FSLRC) that will rewrite and clean up the financial sector laws in the country. The need for the
commission was strongly felt, as much old legislation became complex, lengthy and ambiguous after many
amendments were made to these. The council was mandated to undertake macro-prudential supervision of
the economy and address issues related to inter-regulatory co-ordination. The finance minister had, in
Budget 2010, proposed to set up FSDC. The government had, earlier proposed two sub-committees, one on
regulatory coordination chaired by the Reserve Bank of India governor and the other, on financial stability,
headed by the finance secretary.However, after RBI raised concerns; the government changed the structure
and said there would be only one sub-committee headed by the central bank governor. It also replaced the
High Level Coordination Committee on Financial Markets.
NPC SEEKS RENEWAL OF LICENCE FOR TARAPUR NUCLEAR PLANT
The Tarapur Atomic Power Station, the country‘s largest nuclear plant, has applied to the Atomic Energy
Regulatory Board (AERB) for renewal of its licence, days after the Fukushima plant in Japan suffered a major
damage following a devastating earthquake, leading to radiation leaks.The five-year operational licence of
the Tarapur plant, being operated by Nuclear Power Corporation (NPC) since 1969 on boiling water reactors
(BWR), expires on March 31. In India, nuclear plants are required to seek a fresh licence from AERB after
every five years. After the Three Mile Island (TMI) accident in 1979 in the US, the NPC had installed an
additional battery bank capable of powering for 12 hours at Tarapur. Further, it has added a 100 per cent
start-up transformer to enhance the off-site power reliability. In the aftermath of the Chernobyl nuclear
disaster in 1986, NPC had revised all operating procedures at the Tarapur station, added a hydrogen-
monitoring system and launched full scope inspection of primary containment.

6. CAG PULLS UP SEBI, IRDA, 3 OTHERS FOR RETAINING SURPLUS FUNDS
Government auditor CAG has rapped five regulators, including Sebi, Irda and PNGRB, for keeping their
surplus funds worth over Rs2,142 crore, collected through fee and penalty, outside the government accounts.
Scrutiny of the annual accounts of the 5 regulators - Sebi, Irda, Pfrda, CERC and PNGRB - revealed that
they were retaining their surplus funds aggregating to Rs2,142.47 cr at the end of FY10 outside the
government accounts. These five include Securities and Exchange Board of India (Sebi), Insurance
Regulatory and Development Authority (Irda), Pension Fund Regulatory Development Authority (Pfrda),
Central Electricity Regulatory Commission (CERC) and Petroleum and Natural Gas Regulatory Board
(PNGRB). The practice by the regulators are in contravention of the instructions issued by the finance
ministry that all ministries and departments of the government would ensure that funds of regulatory bodies
are maintained in the public account, the CAG said. The CAG report for the year ended March 2008 and
March 2009 had also highlighted retention of funds by Irda and Sebi outside the government accounts.
HASAN ALI’S INCOME ROSE TO RS54,268 CR IN 6 YEARS: CAG
Income of Pune-based stud farm owner Hasan Ali Khan multiplied by over
100 times in six years from Rs529 crore to Rs54,268 crore in 2006-07,
reveals CAG report tabled in Parliament on Friday. Income of Pune-based
stud farm owner Hasan Ali Khan multiplied by over 100 times in six years
from Rs529 crore to Rs54,268 crore in 2006-07, reveals CAG report
tabled in Parliament on Friday. Khan, who is presently in custody of the
Enforcement Directorate (ED), has not filed returns for several years
despite earning crores, Comptroller and Auditor General of India (CAG)
said. His taxable income, according to the assessment made by Income
Tax authorities, jumped from Rs528.9 crore in 2001-02 (assessment year)
to Rs5404.7 crore in 2002-03. Thereafter, it soared to Rs54,268.6 crore in
2006-07. The report further said that Hasan Ali did not file income tax
returns for five assessment years from 2001-02 to 2003-04 and 2005-07.
However, he filed the tax returns for these years in May 2007 after IT
notice following search operations. Hasan Ali, 53, on Thursday surrendered before the ED after the Supreme
Court cancelled his bail and remanded him to four days ED custody.
RBI HIKES POLICY RATES BY 25 BPS TO FIGHT INFLATION
The Reserve Bank of India, or RBI on Thursday increased its overnight lending and borrowing rates by a
quarter percentage point each to control high inflation, which has already begun hurting the common man.
The RBI hiked its repo rate or the rate at which it infuses money into the banking system to 6.75% and
reverse repo rate, at which it sucks out excess money, to 5.75%. With the latest round of 25 basis point (bp)
hike, the apex bank has hiked its short-term rates eight times since March 2010 to battle high inflation. One
bp is one hundredth of a percentage point. Immediately after the announcement, the benchmark sensex was
trading 62.11 points down at 18,296.58 points while the yield on the most traded 8.08 % government bond
maturing in 2022 remained largely unchanged at 8.07%. The headline inflation, which is still above the
central bank‘s projection of 7% for the fiscal year ending March, 2011, rose to to 8.31% in February, from
8.23% the previous month, defying forecasts of a slowdown. RBI has raised its projection for March inflation
to 8%. Further, continuing uncertainty about energy and commodity prices may vitiate the investment climate,
posing a threat to the current growth trajectory to the domestic economy, the RBI said.
ECONOMIC SURVEY FORECASTS FARM GROWTH AT 5.4%
The Economic Survey on Friday pegged the country‘s agriculture sector growth at 5.4% in the current fiscal,
as against 0.4% in the previous year. The survey also called for a ―Second Green Revolution with
technological breakthrough in the agriculture sector‖ to boost farm output and ensure the food security of the
country. The growth of the agriculture and allied sector is expected to be higher this year on the back of a
revival in foodgrains production in the 2010-11 crop year (July-June) following a good monsoon. Foodgrains
production is estimated to rise to 232.07 million tonnes in 2010-11 crop year from 218.11 million tonnes last
year. The country is all set to harvest a record wheat, pulses and cotton crop this year. In the 2009-10 crop
year, farm sector gew at only 0.4% due to severe drought in 2009, which hit almost half the country, reducing
foodgrain production by 16 million tonnes.

7. CABINET APPROVES PFRDA BILL
The Union Cabinet gave its nod to the long-awaited Pension Fund Regulatory and Development Authority Bill
(PFRDA) that aims to grant statutory status to the pension regulator and open up the sector for foreign direct
investment. The Cabinet also cleared the State Bank of India (Subsidiary Banks Laws) Amendment Bill,
which proposes to transfer certain powers vested with the Reserve Bank of India, with regard to its
subsidiaries, to the central government. If the Bills are not introduced in the current session, they may be
tabled in a special session to be convened in end of May or in the Monsoon Session (July-August). The Bill
seeks to allow foreign direct investment in pension funds, in line with the insurance sector, in which FDI up to
26 per cent is allowed. The State Bank of India (Subsidiary Banks Laws) Amendment Bill seeks to amend the
State Bank of Hyderabad Act, 1956 and the State Bank of India (Subsidiary Banks) Act, 1959.The
amendment will reflect the transfer of ownership of State Bank from the Reserve Bank to the central
government.The Bill seeks to empower the government to fix the authorized capital of SBI subsidiaries and
appoint managing directors. It will also fix the terms of office, salaries and allowances of managing directors
of the subsidiaries by the government.
INDIA’S BULGING GRAIN STOCKS RAISE EXPORTS HOPES
India‘s bulging grain stocks prior to end-March harvest season make a strong case for lifting export curbs, but
analysts say it is unlikely due to political compulsions ahead of state elections in coming months. At 17.2
million tonnes, wheat stocks on 1 March were more than double the 8.2 million tones target, government
sources said on Wednesday, while rice stocks rose to 28.75 million tonnes against a target of 11.8 million
tonnes. High food prices pose a political challenge, drawing voter ire ahead of state elections in coming
months that will help determine the strength of the ruling Congress party-led coalition for the rest of its term.
State-run Food Corp of India, the main grain procurement agency, buys wheat from local farmers between
March and May, while it procures rice throughout the year from October.
The government buys rice and wheat from farmers to build reserves for emergency, run various welfare
programmes and protect farmers from distress sale.
ADB SIGNS $250 MN LOAN AGREEMENT WITH INDIA
The Asian Development Bank (ADB) on Thursday entered into a $250 million loan agreement with India as
part of its infrastructure financing project. This is the second tranche of loan for the ongoing Second India
Infrastructure Project Financing Facility, originally approved in 2009. In 2009, ADB had agreed to provide a
$700 million multi-tranche financing facility to help IIFCL provide long-term funding for infrastructure
development. The first tranche of $210 million was earmarked to finance three subprojects for improving
roads and highways in Madhya Pradesh, Punjab, Haryana, Himachal Pradesh and Delhi NCR, besides
partially funding a power project in Kutch district in Gujarat. ADB had previously provided a $500 million loan
to IIFCL for the First Infrastructure Project Financing Facility in 2007. Of the loan, about $381 million was
disbursed for 27 road subprojects and $89 million for two international airport subprojects in Delhi and
Mumbai.

8. THE DERRICK
INDUSTRY WATCH
SPECTRUM TO BE RESERVED FOR DESI MOBILE TECHNOLOGIES
To encourage development of local wireless technologies, the Wireless Planning and Coordination (WPC)
wing has proposed to reserve nearly 40 Mhz spectrum across various frequency bands to be used for
indigenously developed telecom network products. The WPC, which controls spectrum usage in the country
on behalf of the Telecom Ministry, has floated a draft National Frequency Allocation plan under which it has
mapped out airwaves in four different bands including the 900Mhz, 1,800 Mhz and 1,900 Mhz frequency
bands for exclusive use for Made in India products. The move is aimed at encouraging local technology
companies to come up with India's own IPR in wireless technologies, thereby cutting down on imports.
Currently, almost all of telecom network technology is being imported from multinational companies such as
Ericsson and Nokia Siemens. Reserving spectrum could act as an incentive to Indian companies such as
Shyam Group and Tejas Networks. Mobile operators are opposed to the move given that they are faced with
severe spectrum crunch in the same bands, parts of which are proposed to be reserved. The operators also
viewed that it was too late to think about Indian technologies given that global players are much ahead in
R&D.
INDIA AHEAD OF THE US IN ENERGY EFFICIENCY:THE CLIMATE GROUP
The market for low carbon goods and services in India could touch $135 billion by 2020 creating some 10.5
million jobs. The Climate Group‘s report – India's Clean Revolution – stated that enormous potential exists for
generating new income and jobs by developing domestic renewable energy resources and clean
technologies that improve the efficiency of sectors such as transport and industry. India is making more
progress than the US on energy efficiency, and this market is expected to treble to $77 billion in next 10
years, the international NGO said. India now ranks fifth in the world in terms of wind energy production. Bold
low carbon policies will increase India's energy independence and help provide access to energy to those
who still lack it. The low cost labor and highly skilled manufacturing base will make India a major hub for
clean technologies. Governments and companies around the world are waking up to the economic prospects
inherent in the clean revolution. By 2020, the global markets for low carbon goods and services are expected
to be worth $2.2 trillion. In the next decade, India's share of the global low carbon could balloon to $135
billion. Its compounded annual growth rate of 17 per cent is predicted to outstrip Europe, North America,
China and the rest of the world. Only China and the US are likely to attract more clean energy investment in
the next 10 years but the rate of increase of India's private investment (763 per cent) will be three times the
rate of either of these two competitors.
TATA MOTORS TO HIKE PRICES OF PASSENGER VEHICLES BY UP TO RS
36,000
Tata Motors will hike the prices of its passenger vehicles, excluding the Nano, by up to Rs 36,000 from April
1, to offset rising input costs. Despite continuous cost control initiatives, the company is being forced to take
these increases on account of steep rise in input costs. Under the revised price, the Indica will be costlier by
Rs 7,000-Rs 9,000, Vista and Indigo CS by Rs 8,000-Rs 11,000 and Manza by Rs 10,000-Rs 15,000. The
price of Nano will, however, not be revised. In the utility vehicles segment, depending upon the model, Sumo
prices will go up by Rs 13,000-Rs 15,000, Grande by Rs 16,000- Rs 19,000, Safari by Rs 18,000-Rs 29,000,
Aria by Rs 30,000- Rs 36,000 and Venture by Rs 9,000-Rs 12,000. Tata Motors launched new diesel and
petrol variants of Indica, priced between Rs 2.95 lakh and Rs 3.95 lakh .Other leading car-makers, worried
over rising input costs are expected to take a call on whether to hike their product prices by end-this month.
Honda Siel Cars India has already stated that it would up its prices by 2-3 per cent from April 1. Car sales in

9. India hit a record monthly high of 1.89 lakh units in February. The February sales number is higher than the
record 1.84 lakh cars sold in January. According to SIAM, India's total domestic vehicle sales in the current
fiscal year are expected to grow 26-27% year-on-year.
UNDER-RECOVERIES OF OMCS MAY GO UPTO RS 98,000 CR: IIFL
If the average crude oil prices continue to remain at USD 100 per barrel in the coming months, the total
under recoveries for the oil marketing companies (OMCs) will go up to Rs 98,000-crore in FY 12, a report by
a brokerage firm IIFL said. With the crude oil prices touching USD 100 per barrel mark in February, the under
recoveries for FY 11 is expected to touch Rs 72,000-crore. For the period April-December 2010, the gross
under recoveries of OMCs were Rs 47,000-crore based on average crude oil price of USD 80 per barrel.
However, so far in Q4 FY11, crude oil prices have averaged at USD 101 per barrel, which would result in
gross under recoveries of about Rs 25,000 for Q4 FY11. The unrest in the Middle East and North African
(MENA) countries could further push the crude prices up. The profitability and cash flows for OMCs will
continue to be strained on account of uncertainty on future subsidy sharing pattern. Predictability of earnings
for oil marketing companies has always been a difficult proposition considering high degree of uncertainty on
subsidy sharing mechanism. We expect the government to increase their sharing to 50 per cent for the
current fiscal. A decision on subsidy sharing formula will result in better earnings visibility for oil marketing
companies, which will enable them to plan their cash flows better.
3 INDIAN COS IN RACE TO BID FOR BANDANNA ENERGY'S COAL ASSETS
Three top Indian companies have joined the race to bid for the coal assets of one of Australia's largest
thermal coal explorers - Bandanna Energy - in a deal that could be valued at $1.5 billion. GVK, state-owned
consortium ICVL and Reliance Power have shown early interest in bidding for the assets estimated to have
reserves of over 1.3 billion tonnes of thermal coal. Bandanna Energy has initiated an auction process to sell
the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is
March 31, 2011. An information memorandum circulated among bidders indicates that the company has
$750 million worth assets.
Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various
industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash
content in local coal and reduced production by Coal India has prompted most user companies to scout
global resource rich nations to tap for coal assets.
SAIL, ESSAR STEEL DENY CHARGES OF CARTELIZATION
Leading steel manufacturers SAIL and Essar Steel refuted the charges of 'cartelisation' and 'unfair trade
practices', leveled by ancillary steel producers, by attributing steep hike in HR Coil prices to sky-rocketing raw
material costs and stated that SAIL decide it‘s our own pricing and marketing policyThe prices of coking coal
have seen a quantum jump during the financial year 2010-11 from a level of USD 128 per tonne in the
beginning of the financial year to USD 330 per tonne prevailing at present To produce one tonne of crude
steel it require one tonne of coking coal. It can be seen that prices of coking coal have jumped by two-and-a-
half times.
AIRLINES FACE “MAJOR SLOWDOWN” DUE TO JAPAN
The nuclear and earthquake crises in Japan will cause the airline industry
a ―major slowdown‖ it will not start to recover from until at least the
second half of 2011, industry body IATA said on Friday. The International
Air Transport Association said it was too early to assess the long-term
impact but with the $62.5 billion Japan market representing 6.5% of
scheduled worldwide traffic and 10% of industry revenues. IATA said the
most exposed international market to Japanese operations was China,
where Japan accounts for 23% of its international revenues. Taiwan and
South Korea were equally exposed with 20% of their revenues related to
Japanese operations, followed by Thailand (15%), the United States (12
%), Hong Kong (11%) and Singapore (9%). Japan produces 3-4% of
global jet fuel supply, some of which is exported to Asia, IATA said.

10. ENERGY DEVELOPMENT SETS UP UK SUBSIDIARY
Energy Development Company has set up a subsidiary in the United Kingdom for trading and consultancy
business. The company is into power generation and various infrastructure development businesses. In a
regulatory filing, the company said it has formed a wholly owned subsidiary by the name ‗EDCL (Europe) Ltd´
in the UK. The firm in a separate filing said it is in the process of acquiring five hydro electric projects having
a total capacity of 56 MW. Two projects -- having a capacity of 39 MW -- are in Arunachal Pradesh, while
three are in Uttarakhand. These would be acquired by way of taking over 100 percent shares holding of the
SPV companies formed. Shares of the company were down over 3% from its previous close at Rs35.40 in
the late afternoon trade on the Bombay Stock Exchange.
JAPAN CRISIS TO HIT DIAMOND INDUSTRY
Diamond producers like De Beers and diamantiares in India, especially in Surat were banking heavily on the
growth of the diamond jewellery consumption in India, China and other Asian nations. But, the growth
prospects are likely to be affected by the havoc in the aftermath of tsunami and earthquake in Japan.
After the effects of global economic downturn in 2008, Japan`s polished diamond import had started to show
signs of recovery with the import touching $72.4 million in January, an increase of 44 per cent from January
2010.
The January 2011 data of polished diamond import show that India continued to be Japan`s main supplier
with an export of 1.99 lakh carats diamond worth $33.1 million, an increase of 46.2 per cent by value
compared to January 2010. Belgium exported $11 million worth of polished goods followed by Israel shipping
$5.8 million worth of goods.

11. THE DERRICK
FACTS OF THE WEEK
1. Indian investment in United Kingdom has gathered steam as 42 Indian companies are going to enter UK in
2011.
2. State owned carrier Air India is planning to take call soon on making Dublin airport in the Irish capital its
new hub.
3. Goldman Sachs group, the world‘s biggest securities firm will buy Exchange traded funds (EIFs) specialist
Benchmark for Rs.130crore.
4. Mumbai based Jyothy Laboratories Ltd (JLL), maker of UJALA fabric whitener has acquired 15% stake in
Henkel India.
5. Vishal Retail has sold its retail and wholesale businesses to private equity firm TPG and Shriram Group
for a total cash consideration of Rs.70crore. Vishal had a debt of Rs.735crore.
6. General Electric will invest $50million in manufacturing unit in India this year.
7. Fortis Healthcare has made a tie up with US based TotipotentRX cell Therapy pvt ltd to set up stem cell
therapy centres across its select hospitals.
8. Internet giants YAHOO & MICROSOFT have made tie up to compete with Google together, the tie up is
moving beyond the technology, 200 engineers from Yahoo are working with Microsoft.
9. Financial services firm Religare enterprises gas planned to raise up to Rs.2500crore for expansion,
including investments in insurance business acquisition.
10. Nippon Life insurance, the Japanese largest Life insurance company buys 26% stake in Reliance
Insurance for Rs.3,062 crore.
11. Essar steel which has 500 outlets at present will raise its Retail Network to 650 outlets by 2012.
12. Carmakers are offering best discounts this march, Maruti is giving up to Rs.40,000 discount, Hyundai up
to Rs.45,000 and Honda up to Rs.55,000.
13. Bharti Airtel will not buy government‘s 30% stake in Hexacom as government had demanded a premium
over the Rs.1800crore base price fixed by Deloitte.

12. THE DERRICK
INTERVIEW
EMERGING MARKETS TO GROW STRONGER: DOUGLAS FLINT, HSBC
As chairman of HSBC Holdings, Douglas Flint leads one of only a handful of
banks that survived the global economic crisis without a government bailout.
Flint, 55, tells ET in an interview that the time has come for banks to return to
basics — being financial intermediaries — and rebuild trust with the public
and governments. The banking sector may be out of the woods for now, but it
is still stalked by numerous dangers. Edited excerpts from the interview:
How would describe the state of the banking industry? Is it firmly out of
the woods now?
I think we have come out the acute phase of the major issues that were
problematic in 2007, 2008. So structured credit, securitisation and sub-prime
in the US I think have played largely through. Maybe if the US economy were
to double dip or something, then there would be further bumps. But the
causes of the severe stress that took place in 2008 I think have played
through. But there are a whole bunch of different problems. Sovereign debt issues in Europe; public finances
in America at municipal, state and national level; global imbalances, North Africa & Middle East political
tensions; impact of a higher oil price. There are plenty of things out there to disturb what people had planned
for the next few years.
Do you worry that the North African political crisis could spill over into China? Is China the elephant
in the room?
I think what‘s happening in the Middle East and Africa is a pointer to every regime of every shape that the
power of public opinion has to be respected and has to be understood. Some of the imbalances that have
grown in the last decade from the benefits of globalisation and the distribution of those benefits being
somewhat skewed to a small proportion of the population and between generations is clearly going to create
political tensions particularly at a time when you‘ve got rising energy and food prices and in the developed
world fiscal tightening and fiscal consolidation to create a platform for growth in the future. So people can
quite legitimately ask the questions: So what was my share of the fruits of globalisation and growth over the
last decade? And now I am going to tighten my belt so that we can grow again, what‘s my share of the fruits
going forward? So I think whether it‘s in the West or in the developing world, public perception of the equity of
income distribution, trade flow equality and so on will play a big part in international dialogue and domestic
politics of whichever shape.
HSBC is one of the few banks that escaped the crisis. What will be the shape of the banking industry?
What will drive revenue growth in banks?
The finance industry is there to service the economic policies of governments and to help individuals and
corporates meet their personal and corporate objectives in terms of helping them finance their activities and
make money and have a safe home for savings, plan for retirement. It clearly needs to make money sufficient
to reward those who give it the capital so that they would continue to give it capital. And I think we have to, as
an industry, rebuild the trust and reputation that was lost.
So do shareholders need to expect lower returns from banks over the next few years compared with
the past? Do they settle for lower profits?
I think that‘s becoming a realisation. Returns will fall. You know that a lot of the high profitability turned out to
be recognising profits that never existed and were written off in the years that followed. So if you normalise,
returns were never that high.

13. Globally, regulators and governments have been much tougher. And there has been an argument that
such regulations can stifle innovations that have helped the financial services industry. Do you think
regulations can cut innovation in the fin services industry?
The answer is yes. But that may not be a bad thing. I think when the industry says ‗you might stifle
innovation‘, it‘s perfectly reasonable to respond and say that many of the innovations in the structured
products area had no real utility. They were financial products designed to arbitrage the financial system.
Derivatives have enabled small businesses, mid-sized enterprises and large businesses to do much more
sophisticated risk management than they were ever able to do and therefore moderate their own risks. It‘s
getting the balance, which comes down not to regulations but to supervision.
You were mentioning about the crisis in North Africa, rising oil and food prices. Are these issues
going to take some sheen off emerging markets?
I think there‘s a risk that must be the case. Higher oil price, rising food and energy prices will clearly lead to
economic difficulties in many of the developing markets. This will certainly put pressure on the lower-age
segments of those economies and flow through into interaction with political systems as to how to
accommodate it. So yes, I think there is a risk there that the pressures build up because of that.
Where do global companies that took a bet on developing economies stand in such a scenario?
If you are a portfolio investor and if you are running a totally free allocation, you can clearly move your money
and decide that ‗I had a good run here, I go somewhere else‘. If you are an international bank like HSBC, we
have been here for decades, or centuries. We‘re committed through the cycles. One of the proudest
moments I had, one of the moments I‘ll always remember, was when we got a dividend in January 2010 from
Argentina, 10 years after the crisis. We stayed there, we stayed through. We rebuilt the business. For people
like us, in many respects, a slowdown in certain markets may give an opportunity to build more for the long
term. I have been in this group for about 15 years, which is not much in HSBC‘s terminology. During that time
we have been through (the collapse of the hedge fund) LTCM, Russian debt default, Latin American crisis,
avian flu, Asian crisis, SARS, US sub prime crisis, a number of Middle East shocks. And we have coped
because they haven‘t all come at the same time.
A lot of growth for the emerging economies in the last few years has been because of investors in
developed markets chasing yields. Will recent political developments trigger something similar to the
Asian crisis?
I don‘t think so because the emerging economies have learnt so many lessons from the Asian crisis. There
has not been a huge induction of foreign currency borrowings. The reserve positions now of most of the
countries the world over have significantly improved from where they were. The breadth of international trade
now is much better than it was. So countries are in a much stronger position. I think that many countries have
been quicker to adopt macro prudential controls on bubbles forming. China has been doing reserve
tightening, restricting the amount of money that can be lent into property. Hong Kong has been doing the
same. I don‘t think it is going to be a repeat of the Asian crisis now.
We are in an era where Twitter, a company which has not made profit, is getting a $4.5 billion
valuation. $50 bn for Facebook. Does this situation look familiar?
They defy logic in some ways. Yet every so often there are examples of companies that did not exist 20
years ago, like Google, suddenly get enormous and very powerful. These valuations are indicative valuations
because you are extrapolating from one price what undoubtedly would be proven or not proven over time.
Clearly people have got enough information to make a judgment as to whether they think that's right or not. I
don't think that the amount of money going into that set is sufficiently large for it to have any real impact on
the real global economy. But it's fascinating, particularly in the case of Facebook, just how many customers
or people it can have interacting across its platforms. It is just an extraordinary phenomenon.

14. HSBC has been in India for ages. But look at your peers, particularly StanChart, the way they have
grown in this country. Will you re-look your strategy in India? Is there any bet that went wrong in
India?
We have grown organically since 1865. Some of our competitors have had the opportunity to merge, to
acquire clients. We would love to do more in India. We would love to be able to expand faster. We'd love to
have a bigger platform commensurate with our commitment to the country. We have 32,000 people and India
is in the top 10 of our countries in terms of profitability. It can easily be top 5. Easily. But obviously, we need
to have a scale of operations that would commensurate with that. So, we have all the willingness in the world
to build in India as and when opportunities would present themselves in a way we will be able to take them.
What will be the thrust areas when it comes to India? Between build and buy, assuming you get
regulations that permit both, what would be preferable?
One is just an acceleration in timing. Building is always less expensive to do, but it takes a lot longer. Buying
gives you basically the customer base already packaged and accelerates what you would have taken five,
seven, 10 years to achieve. So it is a question of what‘s the value of the acceleration in the timing. We could
look at both.
The question was more aimed at ascertaining your hunger. How hungry are you to really ramp up,
expand in a big way?
If you said choose one country in the world that you could expand into, that would be India. You can have
one pick and you can do whatever you like, it would be India. I think the scale of opportunities is huge. We
made significant investments in emerging markets in the last 15 years. In Latin America, we have made
major investments (and) in China. We have not had the opportunities to make major investments in India. We
made some investments but nothing of the scale if we had the opportunity to do. So we are hungry.
The Reserve Bank of India has said that if you convert yourself into a subsidiary, you can have all
that you spoke about. Will you do it?
That sounds a slightly more generous interpretation. I think the indications of what‘s being explored for
subsidiarisation are very interesting. We welcome the proposals. We think they are very interesting. We are
going to study them very carefully. If that is a route to achieve what we want to do, then we will certainly look
at them very very seriously.
What are the parts in the RBI’s discussion paper that you don’t like, the ones that would stop you? Is
it that you still will not have the same treatment as local banks?
In principle it looks very good. It‘s something we welcome very much. But we need to understand the detail.
But it looks good and certainly we are certainly optimistic about the opportunity it gives us to build from where
we are.
What excites you the most in these proposals? Is it the room to have more branches? Or is it
opportunity to acquire other banks?
Both. It will be terrific if we are able to open branches in key locations. And it would be good if we had the
opportunity to acquire.
Are you re-looking your retail strategy? You have taken a hit of over $350 million on your retail
portfolio in India.
We have re-looked it. We have significantly curtailed. Nobody made a great success of going deeper into
consumer lending. So we re-focused. We have a business that‘s getting to profitability, which is good.

15. What is the one thing that keeps you awake?
I think technology is increasingly going to be potentially disruptive to the banking industry. It doesn‘t keep me
awake at night, but I think technology is going to be a big opportunity and also potentially disruptive and
potentially a threat.
THE DERRICK
ZARGONOMY
PERIODIC INVENTORY METHOD
System of inventory control in which no continuous record of changes (receipts and issues of inventory
items) is kept. At the end of an accounting period, the ending-inventory is determined by an actual
(physical) count of every item and its cost is computed by using a suitable method such as FIFO,
LIFO, weighted averages, etc. This amount is subtracted from the sum of purchases (or cost
of goods manufactured) and the beginning-inventory of the new accounting period to arrive at the cost of
goods sold.
PERPETUAL INVENTORY METHOD (PIM)
System of inventory control in which the number of units of any inventory item (and the total value of
inventory) on anyday can be obtained from the stock records. In this method(1) all additions (purchases)
and withdrawals (sales orconsumption) are recorded in inventory cards as they occur to provide a
running balance of quantity and cost of items, (2) a certain number of items are counted every day
(orweek or month) so that, by the year end, every item has been actually (physically) counted at least once. If
there is any mismatch (due to human error, leakage, pilferage, loss) between the physical quantity and the
quantity shown in inventory cards, the records are adjusted accordingly. Also called continuous inventory
method.
STAGGING
The practice of buying initial public offerings at the offering price and then reselling them once trading has
begun, usually for a substantial profit. This is more commonly done by institutional investors than retail
investors, because institutional investors get most of the IPO shares at the offering price. Stagging is
most profitable in a hot IPO market, when the price of an IPO often rises dramatically above the offering price
on the first day. also called flipping.
THROUGHPUT CONTRACT
Type of take-or-pay contract used mainly in oil and gas industry, often as an indirect guaranty for project
financing. In this arrangement, a party (usually a group of producers) undertakes to pass (put through) an
agreed minimum amount of material (such crude or refined oil or gas) through a processing plant (called a
processingagreement) or a pipeline (called a pipeline agreement) during a fixed period (month, quarter,
year).
TOLLING CONTRACT
Type of take-or-pay contract for conversion, processing ortransportation (usually through a pipeline) of raw
materialor finished product. Used commonly in oil and gas industry, a tolling contract does
not require the converter, processor, or transporter to purchase the input material or
to sell theoutput product.

16. ALGORITHMIC TRADING
A form of automated trading in which computers execute trade orders based on a series of parameters, such
as time, price and volume. One benefit of algorithmic trading is that it allows a company, such as a hedge
fund or mutual fund, to break up an order so that the trade does not influence market price. Because
computers automatically initiate the orders it is not necessary to have a person review the information.
UNDERWRITING AGREEMENT
Securities-purchase contract between an underwriter or underwriting syndicate and an issuer of bonds or
shares. Among other terms, it specifies the price at which the security will be offered to the public (public
offering price), underwriter's profit margin (underwriting spread), and the date by which the payments must be
settled (settlement date).
SUBSCRIPTION WARRANT
A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount
of securities at a specific price, usually above the current market price at the time of issuance, for an
extended period, anywhere from a few years to forever. In the case that the price of the security rises to
above that of the subscription warrant's exercise price, then the investor can buy the security at the
subscription warrant's exercise price and resell it for a profit. Otherwise, the subscription warrant will simply
expire or remain unused. Subscription warrants are listed on options exchanges and trade independently of
the security with which it was issued. also called warrant.

17. THE DERRICK
ENTREPRENEUR
MICHEAL DELL
Michael Saul Dell (born February 23, 1965) is an American business
magnate and the founder and chief executive officer of Dell Inc. He is
one of the richest people in the world, with a net worth of US$14 billion
in 2010.
EARLY LIFE AND EDUCATION
Michael Dell was born to a well-off, Texan Jewish family, on February
23, 1965. The son of an orthodontist and a stockbroker, Dell attended
Herod Elementary School in Houston, Texas. In a bid to enter business
early, he applied to take a high school equivalency exam at age eight.
In his early teens, he invested his earnings from part-time jobs in stocks
and precious metals.
Dell purchased his first calculator at age seven and encountered his
first teletype machine in junior high, which he programmed after school.
At age 15, after playing with computers at Radio Shack, he got his first computer, an Apple II, which he
promptly disassembled to see how it worked. Dell attended Memorial High School in Houston, selling
subscriptions to the Houston Post in the summer. While making cold calls, Dell observed that newlyweds
and people moving into new homes were most likely to buy a subscription. He targeted this demographic
group by collecting names from marriage and mortgage applications. Dell earned $18,000 that year,
exceeding the annual income of his history and economics teacher.
CAREER
While a pre-med student at the University of Texas at Austin, Dell started an informal business upgrading
computers in room 2713 of the Dobie Center residential building. He then applied for a vendor license to bid
on contracts for the State of Texas, winning bids by not having the overhead of a computer store.
In January 1984, Dell banked on his conviction that the potential cost savings of a manufacturer selling PCs
directly had enormous advantages over the conventional indirect retail channel. In January 1984, Dell
registered his company as "PC's Limited". Operating out of a condominium, the business sold between
$50,000 and $80,000 in upgraded PCs, kits, and add-on components. In May, Dell incorporated the company
as "Dell Computer Corporation" and relocated it to a business center in North Austin. The company
employed a few order takers, a few more people to fulfill them, and, as Dell recalled, a manufacturing staff
"consisting of three guys with screwdrivers sitting at six-foot tables." The venture's capitalization cost was
$1,000.
In 1992 at the age of 27, Dell became the youngest CEO to have his company ranked in Fortune magazine's
list of the top 500 corporations. In 1996, Dell started selling computers over the Web, the same year his
company launched its first servers. Dell Inc. soon reported about $1 million in sales per day from dell.com. In
the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, passing Compaq to become
the world's largest PC maker. The metric marked the first time the rankings had shifted over the previous
seven years. The company's combined shipments of desktops, notebooks and servers grew 34.3 percent
worldwide and 30.7 percent in the United States at a time when competitor's sales were shrinking.
In 1998, Dell founded MSD Capital L.P. to exclusively manage his and his family's investments. Investment
activities include publicly-traded securities, private equity activities, and real estate. The firm employs 80
people and has offices in New York, Santa Monica and London. Dell is not involved in day-to-day operations.

18. At a speech before the Detroit Economic Club in November, 1999, Dell defined the "3 C's" of e-commerce
(content, commerce, and community) while articulating his strategy for offering a superior customer
experience online.
On March 4, 2004, Dell stepped down as CEO of Dell Inc. but stayed as chairman of the board, while Kevin
B. Rollins, then president and COO, became president and CEO. On January 31, 2007, Dell returned as
CEO at the request of the board, succeeding Rollins.
Accolades for Dell include: "Entrepreneur of the Year" (at age 24) from Inc. magazine; "Top CEO in
American Business" from Worth magazine; "CEO of the Year" from Financial World, Industry Week and Chief
Executive magazines. Dell serves on the Foundation Board of the World Economic Forum, the executive
committee of the International Business Council, the U.S. Business Council, and the governing board of the
Indian School of Business in Hyderabad, India. He previously served as a member of the U.S. President‘s
Council of Advisors on Science and Technology.
In July 2010 Dell agreed to pay a $4 million penalty to settle SEC charges of disclosure and accounting fraud
in relation to undisclosed payments from Intel Corporation. Dell Corporation and two other company
executives also paid to settle all the charges.
WRITINGS
Dell's 1999 book, Direct from Dell: Strategies That Revolutionized an Industry, is an account of his early life,
his company's founding, growth and missteps, as well as lessons learned. The book was written in
collaboration with Catherine Fredman.
WEALTH AND PERSONAL LIFE
As of 2010, Forbes estimates Dell's net worth at $13.5 billion.
Dell resides in Austin, Texas with his wife, Susan, and their four children.
PHILANTHROPY
In 1999, Michael and Susan Dell established the Michael and Susan Dell Foundation, which focuses on
children‘s causes. By 2010, the foundation had committed more than $530 million to assist nonprofit
organizations serving urban communities in the United States and India. The foundation has also provided
$65 million in grants to three health-related organizations associated with the University of Texas: the
Michael & Susan Dell Center for Advancement of Healthy Living, the Dell Pediatric Research Institute, and
the Dell Children‘s Medical Center, as well as funding for a new computer science building on the University
of Texas campus.
In 2002, Dell received an honorary doctorate in Economic Science from the University of Limerick in honor of
his investment in Ireland and the local community and for his support for educational initiatives.
POLITICAL CONTRIBUTIONS
In 2004, Susan and Michael Dell were among 53 contributors of $250,000 (the maximum legal donation) to
the second inauguration of President George W. Bush.
CRITICISM
In the April 2011 issue of Mother Jones, a timeline of Michael Dell's life is included in the article 'American
Magnate: Michael Dell: How a homegrown geek outsources, downsized, and tax-breaked his way to the top.'
The article juxtaposes the CEO's spending on luxurious homes and private jet travel with his pursuit of tax
breaks and tax holidays and Dell Computer's outsourcing of jobs overseas.

19. THE DERRICK
ANSWERS TO BIZ WIZ-9
1. The foundations of this company were laid in 1884 by Dr. S. K. Burman. Today, it is India's
largest Ayurvedic medicine manufacturer. Which company?
Ans: Dabur India Limited
2. It was founded in New Delhi in 1983 and is today the world's second largest optical storage media
manufacturer. Which company?
Ans: Moser Baer
3. This beer company claims that it is "The King of Beers".
Ans: Budweiser
4. When consumers have a strong need that can't be met by any existing product, what is it called (term was
coined by Philip Kotler)?
Ans: Latent Demand
5. In South America, Ford once marketed a car under the name 'Pinto', but the product didn't sell. Why?
Ans: Pinto' is Brazilian slang for "small male genitalia".
6. Which organisation is behind the famous "Got Milk?" campaign?
Ans: California Milk Processor Board
7. KFC told the world that their chicken was 'finger lickin' good'. What did they tell the people of China when they
first went there (hint: their sales were abysmal at first)?
Ans: Lick it and love
8. It was founded in 1996 and is ranked No. 10 Indian Web Portal. In 2001, it acquired the India Abroad
newspaper. What?
Ans:Rediff.com
9. Which of these drinks called themselves the UnCola?
Ans:7 up
10. Toshiba is in talks with TerraPower to jointly develop an advanced nuclear reactor. Which well known business
personality owns TerraPower?
Ans: Bill Gates
11. Which new car, planned by GM and its partner in China, gets its name from the Chinese word for 'treasured
horse'?
Ans: Bao Jun
12. Formula-1 hotel are the hotels from which company
Ans: Accor
13. What is the old name of Lenevo?
Ans: Legrand
14. This company, the world's largest in its category, recently changed its logo for the first time in its 40-year
history. Since it is now a well-known brand, it has made its logo a wordless one. Name it.
Ans: Starbucks

20. 15. Name the brand which is the first to sponsor a farm in the hugely popular social game Farmville.
Ans:McDonald‘s
16. What is the term used to describe equipment placed on or near the streets such as bus shelters, signs,
benches and kiosks. This is a medium for outdoor advertising too?
Ans: Street furniture
17. Whose initiatives are called 10,000 small businesses and 10,000 women?
Ans: Goldman Sachs
18. Which famous brand ran an ad during the 1930s with the lines "Big Business Demands" with the guarantee
that read "Have your dealer fit your hand with ___, if it fails to suit you, he will refund your money without
questions"?
Ans:Sheaffer
19:
Personality?
Ans: Nato kan (prime minister of Japan)
20.
Logo?
Ans: Vedanta resource plc
If you have any feedback, suggestions then mail us on newsderrick@gmail.com . Disclaimer: Derrick does
not have own reporters. These are the news collected from different sources. ................TEAM SYNAPZ