Investment Valuation in India

After a long global political battle, China’s decision to open (appreciate) its currency have come as a breather for metal prices, but the long-term impact of Yuan appreciation on metals prices may not be as simple as it looks. China’s purchasing power in the international markets will increase along with the Yuan’s appreciation. China’s demand for commodities is driven by multiple factors such as real demand from manufacturers, construction industry and stockpiling besides speculative demand from traders. However alignment to bulk orders may not encourage buying based on real demand due to appreciation. China being the world’s largest importer of metals and ores, appreciation of Yuan will lower the import price of metals for Chinese importers and manufacturers. This will potentially help push up international prices of these commodities (including in India). This is a positive development for Indian metal and ore producers. However, purchases are eventually determined by demand...

As a continuation to my previous post on reducing carbon footprint, I hope there have been some viewers to the post and at least some who are doing their bit in reducing carbon footprint. CYCLE to WORK This is yet another way of reducing carbon foot print. And for those who don't give a damn to reducing carbon footprint, this will certainly save you money, here are reasons why you should cycle to work. It does not cost you fuel, it is eco-friendly It improves health and you dont even have to spend multiple grands at the Gym. Bicycling is no more a "middle class" or "lower class" trait. And anyways, to protect your "image", you can always buy a high end bicycle. It portrays you as a responsible citizen, improving social image. You can proudly say you are doing this to save environment. So just go ahead, save money, save environment, improve health and reduce carbon footprint.

Unemployment Insurance or Employment Insurance as it is called in some countries provides temporary financial assistance for unemployed citizens while they look for work. In times of distress such as the global financial crisis when people get laid off, this is an effective way to protect people financially, well to an extent at least. At the same time this does not promote or encourage unemployment among people. HOW IT WORKS? This insurance is not applicable for people who have not started working yet. This only applies if you were working as an employee. Eligibility Generally you need to be ‘qualified’ to be insured. Qualification includes Insurable hours - Continuous period of work for a certain minimum hours (eg. 52 weeks) Unemployment – you need to be without work and without pay for some minimum days (eg 7 days) No fault – you should have been fired for no fault of yours and should not have left the job without any ‘valid’ reason. Insurance Premium: A portion of salary (e...

RBI, wide notification no. Notification No. FEMA 20 / 2000-RB dated 3rd May, 2000 have amended the pricing and valuation guidelines for a private company issuing shares to a person resident outside India. RISGHTS ISSUE The offer on right basis to the persons resident outside India shall be at a price which is not less than the price at which the offer on right basis is made to resident shareholders. ISSUE OF SHARES Current Provision - Price of shares issued to persons resident outside India is required to be issued at a value arrived at by a Chartered Accountant who would determine the price in accordance with the erstwhile Controller of Capital Issues (CCI) Guidelines [conservative method of valuation by considering an average of the Net Asset Value (NAV) of the company and the company’s Profit Earning Capacity Value (PECV), which was arrived at based on its past financial performance]. Revised Guidelines - Price of shares issued to persons resident outside India, shall not be...

This article is for all those who care for the environment. And for those who don’t care for the environment, I am sure, they care for their money, at least. Read it and you will surely get tips to save money. We all have heard so much about Global Warming, about Carbon footprints and Carbon credits. Carbon footprints refer to the amount of carbon dioxide (or green house gas) emitted into the atmosphere. Emitting greenhouse gas, along with other issues such as population, urbanization leads to the Global Warming. The issue of global warming is so alarming that corporations and countries now measure the amount of carbon emitted by them and even trade in Carbon credits. Well, the governments and corporations across the globe are arguably doing their bit in making earth a better place to live. But that is not enough. Each one of us (specially in countries such as India and China) are personally responsible for ensuring that we avoid emitting carbon dioxide and other global-warming-...

The reason why China is fast becoming a preferred investment destination and is a toigh competitor for India are not as obvious as it seems. Economic giant US is also not as dominating for China as it is for most other nations in the world. The fact that Chinese goods are sold at a low price across the world is not only because China has been able to able to leverage on the scale and cheap labour backed by solid manufacturing infrastructure. The reasons are more than what meets the eye. The fact is that Chinese yuan is kept at an artificially low level, giving it an unfair advantage in selling its exports. Based on this exchange rate, the US goods looks artificially inflated in price while Chinese goods look artificially deflated in price. US exports to China in 2008 were $69.7 billion (exports to India were $25.7 bn) while the Imports were $337.8 billion (Imports from India were $17.682 bn). China has not been letting its currency appreciate in a free market as it feels that...

Please take a look at the Budget Highlights 2010 Omnifin Budget Highlights 2010