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How to buy life insurance correctly
for safeguarding your assets and
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30 Cover Story
not necessarily help you. A plain-vanilla term
plan, and a dose of financial literacy for the
entire family, may be your best approach. After
all, you dont want to buy into product features
that will only help the insurer earn a higher Buying Life Insurance Right
margin. Our idea is to help even a layperson Life insurance has a definite place in our life. It is the best step
understand various options available. you can take for your family to ensure they survive financially
Sucheta Dalal, in her Different Strokes even when you are not there. Raj Pradhan offers key lessons for
column, analyses the impact of the buying life insurance properly for safeguarding your assets
demonetisation exercise and why a decision
12 Your Money
that found a huge support among ordinary
Indians is now faltering and may have missed
the target. In her Crosshairs column, she talks Rs1 Crore Health Insurance Policy Soon
about the prime ministers effort to push India Benami Property Owners under Watch by I-T
to use less cash. However, there are issues with Department
Jitendra Jain of Kamlashri Builders Held
the digital worldwe need better protection, RBI Counters Will Allow Exchange of the Demonetised
effective grievance redress, financial literacy Currency Notes
and more incentives to switch to electronic Realty Law Finalised in Delhi
payments. EPFO Pensioners Are Required To Submit Life Certificate
With our popular columnist R Balakrishnan by 15th January
also analysing the impact of demonetisation
on various important sections of the economy
and businesses, we have a whole package on an
event that has shaken the country.
We have been exploring momentum in
14 MONEYLIFE
QUIZ
stocks, for some months now. Momentum
strategies work when the market is trending
higher or if there is a correction, as is
happening now. I have listed a few stocks that 18 On the Digital Highway without a Seat Belt
seem to have bucked the market downtrend
and headed higher. Those interested can explore
these strong stocks.
As always, please do write to us with
comments on the published articles and about
20 Different Strokes
Why the Strike against Black Money Faltered
58 How
FUND FACTS Fine Print
ATMs
23 Best & Worst
Mutual Fund Schemes
Function
TAX / FIXED INCOME
YOU BE THE JUDGE
Transformers
& Rectifiers:
Getting
TAX HELPLINE 60 Domonetisation:
You Need To Know
What
Transformed?
50 Queries at Moneylife
Foundations Tax Helpline BEYOND MONEY
Bodal
Chemicals:
Strong Growth 66 Tribals Benefit from
Scientific Approach and
Spiritual Outlook
USEFUL APPS
IFB Agro:
Agressive
52 Skyscanner:
Find the Flight
Growth of Your Choice
First Aid: Expert Advice for
Emergencies
Cozi: The Ultimate Family
Organiser
Apcotex: Swipes: A Better To-do App
Short-term
Blip
Debashis Basu
Editor & Publisher
editor@moneylife.in
Sucheta Dalal
Managing Editor
sucheta@moneylife.in
Editorial Consultant
Dr Nita Mukherjee
nitamuk@gmail.com
New Delhi
of one of the small Tata group companies, Hitech
Drilling, for a brief period, as a nominee director
WIN
a prize
DDA Flats, J-3/66, Kalkaji,
New Delhi - 110 019 on behalf of Schlumberger which had a stake in
the company. However, as a corporate lawyer and
a person who has served on the boards of many
Bengaluru
1st Floor, 13/1, 7th Main Road, Indian, and some multinational, companies as an
1 Cross, Saibabanagar, Srirampuram,
st
independent director, I have keenly observed the
Bengaluru - 560 021
Tata-Mistry episode. The purpose of this letter is
to share with the readers of Moneylife how I, as
Kolkata an outside observer, view the matter.
395, Lake Gardens, Kolkata - 700 045 It is apparent that after taking over as the
Tel: 033 2422 1173/4064 4318
chairman of Tata Sons, Cyrus Mistry went
deeper into the workings of the various group
Moneylife is printed and published by companies and started taking remedial action on the
Debashis Basu on behalf of decisions taken by Ratan Tata which, to him, looked
Moneywise Media Pvt Ltd and
published at 315, 3rd Floor, to be bad and un-businesslike. Corus, which was acquired d iin
uired 2007,
n 20
200707
Hind Service Industries Premises, continued to be in bad shape and could not be turned around in spite
Off Veer Savarkar Marg, Shivaji Park,
Dadar (W), Mumbai - 400 028 of all efforts. Cyrus Mistry decided to stop the daily losses suffered
Editor: Debashis Basu
by Tata Steel and announced liquidation of assets. It is reliably learnt
that the acquisition of Pierre Hotel in USA was done by Ratan Tata at
a very high value against the advice of some of the senior executives
of Indian Hotels. After realising the loss-making investment done by
Total no of pages - 68, Including Covers Ratan Tata, Cyrus Mistry seems to have decided to sell off the Hotel.
It is understood that one personal friend of Ratan Tata was made a
highly paid executive at Tata Power without being required to render
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any services and Cyrus Mistry got him dismissed. It companiesshould be left to the other shareholders
seems that these and similar decisions taken by Cyrus (excluding Tata Sons). If SEBI is permitted to act
Mistry to reorganise the group companies were not without being influenced by Ratan Tata, and without
liked by Ratan Tata and, hence, the removal. any political interference, the voting of Tata Sons at the
As regards the working of Cyrus Mistry as the EGMs (extraordinary general meetings) proposed for
chairman of various group companies, the law requires removal of Cyrus Mistry should be barred. Let us see
the board, and/or the independent directors group who wins, David or Goliath.
and/or the nomination and remuneration committee ML Bhakta, senior partner, Kanga & Co, by email
of every public company, to make an assessment of
the performance of the companys chairman annually. GOOD SENSE SHOULD PREVAIL
I am sure that all the public companies must have I have read the Moneylife articles on the feud between
clearly recorded such assessments for the period since the two giant industrialists in Tata Sons and it is,
Cyrus Mistry was appointed chairman and it should be indeed, unfortunate that it has happened
interesting to examine the records, to between the two Parsi families which
ascertain the reality. have great reputation globally. If one
It is shocking that with a view to serve were to go through the history of Parsis
their own purpose, Ratan Tata and his in India, one will come across a very
team have thought it fit to raise doubts well-known event when they landed
about the independence of eminent the shores of Sanjan (Gujarat). They
independent directors like Deepak Parekh, promised the then rulers of Sajan that
Keki Dadiseth, Nadir Godrej and even they would spread sweet fragrance
gone to the extent of maligning a well- throughout the country. Just as sugar
known industrialist like Nusli Wadia who mixes with milk, they would maintain
has been associated with the group even harmony and peace and spread sweet
before Ratan Tata came on the scene. fragrance. The Parsi community
The suddenness and the manner in which is known for its patriotism,
Cyrus Mistry has been removed do not leave philanthropy and business skills.
much to be said. This is a distinct case where Jamsetji Tata, the pioneer who build the Tata
SEBI (Securities and Exchange Board of India) can empire, believed in three cardinal principles: good
play a role and the importance of Tata group in the thoughts, good words and good deeds. However, any
corporate sector of the country calls for intervention immediate truce seems remote. But a serious attempt
and action by SEBI. has to be made to resolve the present crisis which will
Apart from holding of Tata Sons in various group impact all the stakeholders globally and, particularly,
companies, the remaining shareholders are financial small retail investors who have immense faith and
institutions, FIIs (foreign institutional investors), confidence in good governance. The situation is quite
mutual funds and small public shareholders. It will be similar to what prevailed in the case of the Ambani
unfair to treat Tata Sons, which is fully controlled by brothers who, ultimately, chose the path of a good
the Trusts chaired by Ratan Tata, as a non-interested arbitrator and resolved the crisis amicably. Hope good
shareholder of the group companies. sense prevails, for the betterment of the countrys
In fairness, the decisionwhether Cyrus Mistry economy.
should continue as the chairman of various group Ramesh Kapadia, by email
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have the pharmaceutical sector MF schemes outperformed a. never b. once
the information technology sector MF schemes? c. five times d. seven times
a. eight times b. four times
c. twice d. once 6. What was the lowest return by an information technology
sector MF scheme in a particular five-year period?
2. What is meant by inter alia? a. -2.32% b. 1.55%
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c. Alien from Internet d. Among other things
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Dont pre-pone Taxes; scrap the ICDS Strange request from slayed
standards, appeal CAs unmarried RTI activist Satish
The Bombay Chartered Accountants Society Shettys wife to remove report on
(BCAS) has requested the finance minister, Arun his murder
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the Income-tax Act, 1961. BCAS has launched a (RTI) activist, Satish Shetty, Moneylife received
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MONEYLIFE | 9-22
27 November
Dec 2016
2014
| 18| 14
M
unicipal council elections in Gujarat and and turmoil faced by ordinary people has not even shaken
Maharashtra seem to suggest that prime minister the confidence of the corrupt who continue to manipulate
(PM) Narendra Modi and the Bharatiya Janata the banking system to corner new currency.
Party (BJP) have scored big with the strike on black money The government and its diehard supporters will argue
through demonetisation of Rs500 and Rs,1000 notes. At that it is too early to pass any judgement. After all, the
least, that is what the Party believes, as is apparent from frequent policy changes are being announced, precisely to
their social media messages. plug every new leak that is detected. Unfortunately, the
However, a series of rapid-fire actions by the government atmosphere of uncertainly and confusion is causing a new set
indicate a dawning realisation that the rollout of the of problems. For starters, it is fuelling rumours and fanning
demonetisation plan is riddled with errors, misjudgement fears of an authoritarian State that encroaches on our
and big blunders such as printing new Rs500 and Rs2,000 rights in the name of fighting corruption. On 1st December,
notes in different sizez (which the finance ministry had
rendered 220,000 ATMs to clarify that it was not
until they are painstakingly planning to change the law to
recalibrated), complete clamp down on the amount
lack of preparedness and of gold that Indians can hold,
leadership at the Central or which the government can
government presses at Nashik seize during tax raids. It is not
and Dewas, shortage of Rs500 clear if the clarification has,
notes and failing to anticipate indeed, allayed fears. The
the problem of having no Reserve Bank of India (RBI)
currency between Rs100 and also issued a press release
Rs2,000 after demonetisation asking people not to believe
and lack of understanding anything that is not officially
about the extent of Indias announced on its website.
cash economy. The PM has not admitted to any problem. But, remember, the rumours
But the PM has not Instead, as is his style, he is leading a had found wide acceptance
admitted to any problem
massive campaign to persuade people to because of a pattern of
with the rollout. Instead, as policy announcements and
is his style, he is leading a
switch to electronic transactions, using his legislative changes. Fears of
massive campaign to persuade personal charisma and goodwill intrusive government and tax
people to switch to electronic terrorism are not without a
transactions, using his personal charisma and good will basis. It is important to understand the sequence.
to great effect. Unfortunately, all the positive actions are Nikhil Vadia, a well-regarded chartered accountant,
being undermined by two factors. told Moneylife Foundation members, at a recent workshop,
One, the constant change in regulations, policies and about how Rule 12E was introduced on 16 November
decisions of the government seem to suggest that the 2016, under what is known as the scrutiny Section,
government is shooting in the dark on the black money allowing an income-tax officer (ITO), the first level in the
issue and is clueless about the contours of the problem hierarchy, to order a tax scrutiny. This has the potential to
and the solutions. Two, daily reports of large cash seizures unleash tax terrorism all over again and reverses the earlier
in new notes. As much as Rs4.7 crore in new notes were efforts by this very government to end the harassment of
seized from government officials in Bengaluru; a BJP district genuine taxpayers.
secretary was caught with over Rs20 lakh in cash in Tamil On a recent trip to Delhi, we were told by a very senior
Nadu; and Rs95 lakh has been seized in Hyderabad. This official in one of the government agencies about plans to
leads to the chilling conclusion that the enormous pain recruit thousands of retired tax officers to scrutinise all the
deposits made between 8th November and 31 December to reason that Rs2 lakh crore or more would come into
2016. While people were still trying to understand these the system till 30 December, thus throwing to the winds
changes, the government hurriedly passed the Taxation all calculation of the government to tackle black money,it
Laws (Second Amendment) Bill, 2016, announcing another says. In fact, there are jokes and memes circulating on
opportunity to come clean on undisclosed income or face social media about the attempt to trap unaccounted
steep penalties. wealth through demonetisation. One, attributed to a
This change, which is seen as another income declaration tax official, says, With amount of money already back
scheme, also seems to suggest a drastic course-correction in bank, I fear it may be like Black Label whiskey, more
in the governments plan to deal with black money. There money may come back than has been printed by the RBI.
are reports that over Rs11 lakh crore of demonetised Whether this could actually happen was also posed as a
currency has already been deposited into banks, signalling serious question at a discussion organised by the Bombay
that black money hoarders were merrily depositing their Chartered Accountants Society a couple of weeks ago.
stash of undeclared wealth without fear of punishment It will be another 30 days before a clear picture emerges,
or coercive action. but the government is clearly worried. The spate of tax
This is most plausible, because tax experts and notices and raids on hoarders is a sign; but it still does
retired income-tax commissioners have been confidently not include measures to root out the generation of black
encouraging people to deposit their unaccounted money money and its illegitimate use in funding political parties
as this years income under Sections 68 and 69 of the and elections (unrealistic spending cap per candidate),
Income-tax Act and get away or the sale of government
by paying 30% tax. While appointments and postings
there is a good chance that with its consequence of
this may lead to litigation, rampant corruption in
case law from the two delivering public services.
previous instances of currency At the same time, it has
demonetisation in India put every single person in
(1946 and 1978) may support the entire country through
this stand. Nikhil Vadia cited enormous hardship, and at
several examples where even a great cost to the economy
the most egregious cases of itself. After two consecutive
conversion were decided by years of drought, the
the apex court in favour of economy was just beginning
the taxpayer, after protracted to pick up. Banks, which
litigation. People with large There are reports that over Rs11 lakh crore were struggling with losses,
amounts of unaccounted of demonetised currency has already been bad loans and shrinkage of
money would clearly prefer
deposited into banks, signalling that black lending opportunities, are
to take their chances with now fully occupied only
our slow legal system
money hoarders were merrily depositing with exchanging currency;
than allow the currency to their stash of undeclared wealth all other work has come to
turn worthless. Will such a standstill. Depositors are
declarants be willing to make this money legitimate under not only unable to withdraw their funds, but deposit
the new amendment? It remains to be seen and depends rates are shrinking. Foreign investors are systematically
on what else the government does to end corruption and pulling money out of our stock markets. If all this werent
expropriate black money. enough, oil prices, which have a significant impact on our
The governments action also indicates that its surgical economy, are gradually beginning to rise.
strike on black money has missed its target. An article on PM Modi took a huge gamble with demonetisation
IANS offers a simple arithmetic: currency deposited in and he will certainly work very hard to make it pay off;
banks in the first 20 days after demonetisation (Rs8.45 lakh but at this point of time, it is anybodys guess which way
crore) plus the cash reserve ratio (CRR) as on 8th November it will go.
(over Rs4 lakh), plus another Rs50,000 crore as cash-in-
hand adds up to Rs13 lakh crore, which is just short of the Sucheta Dalal is the managing editor of Moneylife. She was
Rs14.5 lakh crore worth of higher denomination notes that awarded the Padma Shri in 2006 for her outstanding contribution
were demonetised. With another 30 days to go, it stands to journalism. She can be reached at sucheta@moneylife.in
31.43 32.07
30 26.90 26.29
24.67
22.79 22.38
19.06 20.57
20 17.03 16.98 16.49 17.25
15.43 16.15 15.49 14.87
13.50 13.17
10 8.47
5.34
2.33
0
Sep-16 Sep-15 Sep-14 Sep-13 Sep-12 Sep-11 Sep-10 Sep-09 Sep-08 Sep-07 Sep-06 Sep-05
Debt Schemes
Income (Category Avg: 2.75%, Crisil Composite Bond: 3.09%)
ICICI Prudential Long Term Plan 20-Jan-10 1,509 3.45% 18.08% 13.82% 1.21%
ICICI Prudential Income 09-Jul-98 2,753 3.19% 17.34% 12.76% 1.81%
HDFC Income 11-Sep-00 2,610 3.17% 17.72% 12.66% 1.84%
Invesco India Medium Term Bond 30-Dec-10 1,325 2.31% 9.50% 9.24% 0.75%
Axis Banking Debt 8-Jun-12 556 2.27% 8.68% 9.06% 0.35%
Invesco India Bank Debt 29-Dec-12 430 2.02% 7.85% 8.08% 0.65%
Liquid (Category Avg: 2.07%, Crisil Liquid Index: 2.11%)
Escorts Liquid 03-Oct-05 244 2.19% 8.14% 8.76% 0.50%
Peerless Liquid 19-Feb-10 583 2.11% 7.84% 8.45% 0.21%
Indiabulls Liquid 25-Oct-11 6,423 2.11% 7.93% 8.45% 0.21%
Reliance Liquid - Cash Plan 07-Dec-01 4,185 1.92% 6.96% 7.68% 1.04%
L&T Cash 27-Nov-06 640 1.85% 6.62% 7.41% 0.79%
HDFC Cash Management - Call Plan 06-Feb-02 150 1.83% 6.46% 7.31% 0.20%
# Please note the table represents a comparative performance of mutual fund schemes over a three-year period and it is not a recommendation; * Latest quarter average assets
under management; We have only considered schemes having a corpus above Rs100 crore. **Annually compounded
T
he demonetisation of 500 and 1,000 rupee notes, who lend in cash, take interest in cash and provide the
announced on 8th November, has virtually touched working capital to this sector.
every life in the country. Whether you had a This example can be extended to things like plastics,
currency note of that denomination or not, you have not household items, electricals, etc. The participants of this
escaped its impact. My focus, in this column, is simply on sector, in turn, contribute to demand for a range of products
what happens to the fundamentals of stocks, following this like consumer durables, automobiles, etc. In addition,
monumental decision. Does demonetisation mean a lower, we have the millions of business-to-consumer (B-to-C)
or higher, profit for them or does it mean that life goes on businesses that include everythingfrom a food vendor
as usual? I am not trying to either explain or anticipate with a basket on his head, to the corner store selling day-to-
which way the markets are headed. My focus is more to day products. In a country where connectivity is poor and
see if the stocks themselves become more attractive or less digital outreach is not great, electronic payment systems
attractive because of demonetisation. have not caught on. And, in addition, the reluctance to
pay taxes, etc, means that our economy is predominantly
Where Cash Is King a cash economy.
Demonetisation, among other things, has primarily put The second set is the business-to-business (B-to-B)
brakes on discretionary consumer spending. segment. Logic says that they may not be affected
There are two sets of people who are Think again. The B, in the B-to-C segment,
now going to take time, to come back buys something critical that is the output
to buying. First are those who are in of the B-to-B segment. A hardware
cash-based system. For instance, the fellow will need aluminium. A utensil
wholesale markets have a range of manufacturer will need steel, copper,
people from owners, employees, etc. The B-to-B distributor is the
loaders and freight-operators for facilitator. He has no hesitation in
deliveries. The owner buys from the selling and collecting cash, whether
organised sector as well as from the he reports it or not. The B-to-B sector
unorganised sector. The unorganised will suffer a deep knock-on effect, if
sector is a large cottage industry the B-to-C sector slows down. There is
which does not pay any taxesdirect also a loss of wealth for some who would
or indirect. The inefficiencies of scale are have provided capital to the B-to-B sector.
more than offset by avoidance of taxes. Even if they have not lost all, their coming
The entire chain operates on cash payments. Salaries, back to business is going to take a long time before
raw materials, packaging, despatch, transport, etc, are new dynamics are established.
all paid in cash. If you go to the shop to buy, most will The B-to-B also outsources a lot from the medium and
get a cash memo with the word estimate printed on it. small enterprises (MSMEs) which, in turn, rely a lot on the
You will pay cash. If you flash a card or want to make cash-driven economy. The cash-driven economy has a lower
a cheque payment, you will be told that there would be cost structure which more than offsets the dis-economies
16% tax, extra. Since these are not big tickets (typical bills of scale. All of these will have to find a new equilibrium.
could be from Rs5,000 toRs50,000), most transactions Many will go out of business and there will be a disruption.
happen in cash. At the point of writing, the cash withdrawal limit for a
This group of people is suddenly impacted. Cash is in business is just 50,000 rupees a day. Most businesses need
short supply and there is a newly instilled fear of dealing several times this on a daily basis. So everyone will try and
in cash. It will take a long time for this ecosystem to adjust find ways to live within that which means that, somewhere,
to be a part of the tax-paying universe of commerce. It will there is a huge contraction in spending taking place. If you
change the dynamics and there could be casualties along consider the truck operators, each one needs upwards of
the way. In this business chain, there will be financiers Rs20,000 per day to meet fuel, bribes and toll costs. Not
everyone has a fuel card. Bribes (police harassment, for by the currency shortage. High-end durables and luxury
overloading or for some violation or the other) are paid goods segments would hurt.
in cash. For the truck operators, it has become a regular The real estate sector is yet to face some music from the
expenditure, like the toll. government. Home finance should see a slowdown even if
Thus, a general slowdown is on the cards due to house prices fall, as the investment demand slows down.
demonetisation. How long could it extend? My view is Maybe, if home loan rates drop to 8% after the Budget,
that it could be anything from 6-18 months. Our economy there could be a small revival. Automobiles should suffer a
is too deeply entrenched in cash transactions and the slowdown, too. Infrastructure would be in the spotlight as
new order will take time. The government has pushed expectations are high about government being compelled
the Budget forward by around four weeks. This means to spend on infrastructure, to revive sentiments. Some big
that the government has armed itself with a way to apply tax changes could come, as GST (goods & services tax)
some quick-fix relief measures, as the extent of the fallout will also be making its debut in the coming year.
would be clearly visible by December-end. Stock markets should go down more. Dont forget, we
I expect interest rates to come down, as banks will are witnessing a chain of happenings as the US sets to chart
have more money. Whether business has the confidence to a new path that has resulted in the dollar strengthening
spend is something difficult to say. The move against illicit and interest rates firming up. In other words, global money
wealth will get intensified and this will surely mean that flows into US have got a leg up. The flows into emerging
there would be less money getting invested, in the short markets have, consequently, thinned. And we all know
term. The government will, probably, have to give a big that our markets are driven by foreign portfolio investors,
infrastructure spending push in the Budget to revive the though domestic mutual funds are acquiring some heft.
sagging spirits. Private investment could be encouraged, This may be an opportunity to get hold of high-quality
to some extent, as interest rates start declining. All of this stocks at attractive valuations. The key is not to invest
will take time. So far as 2016-17 is concerned, the last at the first fall. I think, the next 12 months are an open
four to five months of the current fiscal (April to March) season for buying. So plan your buying gradually. Or
will see some contraction in the economy. start doing SIP in high-quality stocks. And be alert for
This means that the corporate results for the last quarter sharp corrections, when there is disappointment on a
will bear the the full impact of demonetisation and also quarters result. Sectors like pharma and software should
whatever measures come, between now and the Budget, do reasonably well. And the other thing to remember is
in the governments attempts to attack black money. It is that we are not falling from a reasonably valued market.
logical to expect a sharp fall in that quarter. Among the We are falling from an over-valued market. In the history
different sectors, banks are happy (lower cost of money, of economic India, we have entered uncharted waters. No
thanks to a spike in deposits for some time and book one knows the true and final outcome of demonetisation.
gains on falling interest rates). The non-banking financial We all hope that we will emerge stronger.
companies are unhappy, as they are impacted on loans to
individuals, and the MSME segment, which is impacted The author can be reached at balakrishnanr@gmail.com
Which insurance product then is right for you? As a member of Moneylife Advisory, you
get advice on selected term insurance products, identified after deep, unbiased research.
Most importantly, you will get special support during your claims, as long as you make the
right declarations.
es dier
Health insurance products are complex. Policies
in exclusions, conditions and fine print. If
you slip up on even one of the conditions,
your claim may be rejected or cut down. A
large number of cases generate disputes
and some end up as complaints with the
Insurance Ombudsman or consumer courts.
This is all you need on the insurance front. Be an MAS member today and stay safe.
MAS is a no-bias, no-conflict platform. We are not in the business of selling any
financial product and so can advise you ethically.
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T he guidelines of Insurance
Regulatory and Development
Authority of India (IRDAI)
between a fresh proposal, where
there was no confirmed contract
till its acceptance, versus an
one day from the receipt of
the claim with the necessary
documents.
require the insurer to inform already underwritten policy which It will be available to the
the policyholder about the was pending for revival. For a registered beneficiary in all
acceptance or rejection of his/ policy which was pending revival, eligible policies which have
her request for revival of lapsed absence of any communication completed three or more
policy within a period of 15 from the insurer confirming continuous years, in which the
days. The Maharashtra State the acceptance of the proposal claim amount is less than Rs25
Consumer Disputes Redressal within 15 days can be considered lakh and the claim does not
Commission observed that the as deemed approval as per the warrant any field verification.
failure to communicate the Commission. Necessary documents should
rejection of the revival application be submitted before 3pm on
within 15 days, as provided Max Life Insurance InstaClaim any working day from Monday
under the IRDAI regulations,
would constitute a deemed M ax Life Insurance has
launched InstaClaim
to Friday at any of Max Lifes
offices.
T
he death of a bread-winner is an emotional family is lucky, even when it means that the premium
shock for a family. If the persons life is not is you paid is wasted. If you are not lucky enough to
covered, it can be a financial disaster as survive, the family gets a gift of the security of a lifetime
well. If the person had adequate insurance due to your wise decision of buying life insurance.
on his/her life, the family can at least use the There are people who may over-insure, to be on
death benefit to carry on with life. Insurance is a transfer safer side; there may be those, at the other extreme, who
of your risk to the insurance company, for a cost. The will under-insure or buy no insurance. Based on your
golden rule is that you should insure what you cannot age, family, location, assets, income, liabilities, you can
afford to lose. If the impact of the rare event can lead the decide which insurance cover or covers you need and for
family to poverty, or huge loss of assets, you need to be what amount. You may need to prioritise the insurance
insured against the possibility of such an event. requirements, in case you cannot afford to buy all the
Life insurance is a necessity for most people; it is best required covers.
gift for your family. If you outlive the policy term, your Life insurance should be high on your priority list,
especially if you have dependents. But avoid insurance- up to 25 times the annual salary. The general rule is that
cum-investment products like ULIPs (unit linked insurers do not want someone to be over-insured as it
insurance plans), endowment, money-back and whole- can mean fraud. Its not always true, but buying high
life policies. Keep your insurance and investment needs cover than what you are eligible for is a red flag that you
separate. Buying a term insurance return of premium may be hiding some illness while making the purchase.
(TROP) product is also an unwise choice, even though While filling the proposal form, declare your existing
it is a term plan. The return of premium feature makes life insurance policies (if any). It is important to make
it an insurance-cum-investment product that is best all declarations in the proposal form in utmost good
avoided. faith. Ask for a copy of the submitted proposal, along
Buy an insurance product that is simple to understand. with the policy document. The proposal is a crucial
Offline term plans are expensive; hence, skip them. Even document, as medical tests may not detect all the health
LIC has its online term plan (e-Term) which is much conditions. Insist on a medical test before you buy life
cheaper than its own offline term plan. So, you have a insurance. Talk with the insurer about medical tests
choice of online term plans from LIC as well as private before the purchase. An insurer may not do the medical
insurers. An online term plan is the best option. But is it tests in all cases. Insurance companies keep changing the
really easy to buy, with multiple options that go with the criteria for medical tests to not require it for higher age
base product? Keep your focus on the base cover which or higher sum assured. It is not good news for customers
is simple to understand, instead of going for features as medical tests help in robust underwriting.
which you dont need or are unable to understand.
The flexibility and features offered by term plans 2. Go for Single Premium?
usually benefit the insurance company. They sell higher Single-premium products offer a discount in premium
margin features which may not be cost-effective. It is compared with regular annual premium policies. The
difficult for customers to decipher. Buying a plain-vanilla discount can be tempting, but resist the temptation. You
online term plan, with no bells and whistles, will be a should never buy a single-premium term plan. It can tie
wise decision. Stay away from life insurance agents, you up with the insurance company till end of the policy
bank personnel or any other intermediary, including
online sellers or web aggregators. Buying an online term
plan from insurance company website is the best way to
purchase.
premium is better because you pay as you go. While one- to work out the math and make a financially correct
time payment is convenient, one must not ignore the time decision. Insurers can take advantage of it and sell you
value of money. The money you save by not going with the less cost-effective option. You need to safeguard your
single premium can be invested. It may do better than interest.
any discount offered for single-premium mode. Dont Mr Vaidyanathan evaluated the three payout options
fall for the single-premium mode. offered by ICICI Pru iProtect Smart and concluded the
following: At 8% discount rate, the NPV (net present
3. Why Go for Lump-sum Payout? value) works out to roughly the same for lump-sum
Many term plans offer the options of death benefit as a versus increasing income benefit, but the premium is
lump-sum or monthly income (fixed or increasing). The 26% higher for increasing income benefit. So, lump-sum
argument in favour of periodic payment (income benefit works out to be better option financially. Why would
payout) is that the lump-sum amount may be misused by you want to pay 26% higher premium just to get payout
the dependents intentionally or otherwise. There can be as increasing income benefit?
selfish relatives or advisers who can misguide the family Moreover, the comparison of lump-sum with same
to invest in toxic products that can put the lump-sum amount paid as income benefit reveals that the NPV
received at risk. Buyers of life insurance should take into works out to be 28% lower than the lump-sum payout,
account the financial literacy of dependents as much as but the premium is only 15% lower than lump-sum
the amount of insurance for proper coverage. But if the option. Is that a marketing gimmick? It again reinforces
family can efficiently manage the lump-sum payout, it is the argument that lump-sum payout can work out to
better than income benefit. be financially better option. The income benefit option
A Moneylife reader, Dhananjay Vaidyanathan, seems to be a feature designed to help the insurance
has made an excellent comparison of lump-sum death company earn higher margin.
benefit payout versus income benefit payout that shows
the lump-sum death benefit to be a better option. Check CASE 1: Lump-sum Payout
the three cases below to know how make a financially ICICI Pru iProtect Smart premium for a 31-year-old
prudent decision. male buying cover of Rs2 crore is Rs15,216. The NPV is
The family can decide to invest it as per their or your Rs2 crorethe same as the cash flow from death benefit
wishes. It is best to state your wishes in writing for the lump-sum payout.
family so that they know where they can invest it safely
and avoid risky investments. It is especially important CASE 2: Increasing Income Plan for 10 Years
if the family is not savvy about investment. The selling The NPV is Rs2.01 croreclose to NPV of the lump-
pitch for income benefit payout is that it saves the sum option. The premium isRs19,172 which is 26%
nominee the burden of managing a large pool of money. more expensive compared to the lumpsum payout. Why
But is it really cost-effective? It is not easy for a layperson would you opt for increasing income benefit, especially if
W ith term plans, there are higher chances of fraud. Is that the reason why some newer insurers have a high
It is, after all, a low premium product giving high number of high-value claims rejections?
cover. So, fraudulent policies, such as buying cover for In 2013-14, HDFC Life and ICICI Pru Life were
someone already dead, buying cover without declaring in the second and third positions for claims rejection
about smoking or existing PED are a reality. Insurance (number of policies) of 4.70% and 4.98%, respectively;
companies reject the claims
claims when rejection (benefit
they arise. If a Claims Rejection amount) was 9%
genuine claim is SBI Life and 12.73%,
rejected, one has Canara HSBC OBC
respectively. For
to go through 2014-15, ICICI
HDFC Life
the redressal Pru Life has
Sahara India Life
process. It will be fallen to sixth
Kotak Life
interesting to see position (5.42%),
SUD Life Claims Rejection (Benefit Amount)
how the recent while HDFC
PNB Metlife Claims Rejection (No. of Policies)
Section 45 Life (7.24%)
amendment ICICI Pru Life ranks at 11th
will help the Bajaj Allianz place. Both fare
policyholders as Tata AIA even worse with
insurers cannot Max Life claims rejection
reject claims Birla SunLife (benefit amount)
after three LIC at 17.25%
years of policy 0% 5% 10% 15% 20% 25% and 21.13%,
purchase citing Top-13 insurers ranked according to claims rejection for 2014-15
respectively. This
discrepancies in is a high number
declaration. compared with
But is it possible that insurance companies are other insurers in the same range for the number of
strict with high-value claims? They may pay low-value policies rejection ratio. It certainly helps LIC keep its
claims to improve their claim settlement ratio, but the top position secure.
key is to keep track of the benefit amount rejection. It An insurance companys inefficiencies, or poor
will tell if high-value claims are rejected by insurance underwriting practices, can be a reason for high
company. After all, how many death claims of high repudiation ratios. It can also be due to incorrect or
value (Rs50 lakh or more) paid by insurers is an hidden details in policy forms filled by a policyholder
important criterion. Online term plans, being a recent with or without abetment of an agent. It is imperative
phenomenon, may have many early claims (death that the policyholder fills up the proposal form in
within three years of purchase). Early death claims are good faith without the agent filling any policyholders
subjected to higher scrutiny for veracity from insurer. personal data.
your family is financially literate? get the family educated on handling finances.
CASE 3: Fixed Income Plan for 10 Years 4. Buy Increasing Cover To Beat Inflation?
The NPV is close to Rs1.45 crore28% lower than the The need for life cover does increase after having
NPV of the lump-sum payout. The premium is Rs12,934, children. But, at one point, the need will start decreasing,
only 15% lower than the premium for lump-sum. So, when children have completed their education, have a
with same income benefit, you get a lower NPV, but job and are married. So, life insurance need grows with
the premium is not as much lower. It proves that lump- age and drops later. It should come down to zero, when
sum option remains your best bet for ICICI Pru iProtect you retire. It is not a good idea to have increasing sum
Smart. For term plans, go with the lump-sum option and assured cover even if you want to consider the impact of
savers.moneylife.in
MAS is a SEBI-registered investment adviser and part of Moneylife,
Indias most unbiased and pro-investor research and information group.
Investools with
equity funds & stocks
Monthly Investing
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Stocks
Long-term Stock picks
SIP Tool for Stocks
Should You Ride with Riders? which will pay. The possibility of accidental death,
PTD and PPD is remote. TTD pays a fixed amount if
due to various reasons like loan, etc. If you are healthy, http://tinyurl.com/glmc5kj
there are good chances of getting a term plan, albeit at For Sampoorna Raksha, the total premium paid by a
higher premium due to age. Any adverse declaration in 60-year-old for a period of 20 years is Rs8,09,600; the
the proposal may mean denial of life insurance proposal. total premium paid by 70-year-old for a period of 10
There can be loading instead of rejection for certain cases. years is Rs7,55,550. It means that a 70-year old will pay
Read our Cover Stories - http://tinyurl.com/zuyquka and a lower total premium than a 60-year-old. It contradicts
the assumption that, with advancing age, you pay higher of Rs3 crore or more is better to split. Even though
premium! high sum assured may fetch you a discount, split policy
can help to get rid of one policy when responsibilities
8. Should You Split into Multiple Policies? (child education, marriage) are over by retirement. It
Based on your high income and, possibly, need for a high also helps to not put all the dependency on one insurer
cover, you can think about splitting into two or more to have to pay a large sum assured amount. If there are
policies. It will also help, in case you plan to discontinue issues with the declaration, even split policies will not
one or more policies in future. help, as there can be rejection from each insurer. They
If you do not foresee the need to give up one policy all do due diligence when they have to pay claims. The
before the other, you can go with one online term plan, recent Section 45 amendment will help policyholders as
especially if there is discount for high sum assured (SA). insurers cannot reject claims after three years of policy
For example, you can check the premium of two Rs1- purchase citing discrepancies in declaration.
crore policies versus one Rs2 crore policy. If the product
offers lower premium for a Rs2-crore policy compared Keep in Mind
to two Rs1-crore policies, you can consider going with Term plan covers include death due to terrorist attacks
Rs2-crore policy. If you wish to split the policies, declare or natural calamities. Declaration of the correct age
your existing policy when you buy new one. Insurers do and/or gender of the life insured are important for
not want you to be over-insured. calculation of premiums payable under the policy.
It is usually better to go with one policy, but cover Fraud, misrepresentation and forfeiture would be dealt
with in accordance with provisions of
Section 45 of the Insurance Act, 1938,
Buying One Rs2-crore Policy versus Two Rs1-crore Policies as amended periodically. If the life
Type Premium for one Total premium for two Savings due to high insured commits suicide, whether sane
Rs2-crore policy Rs1-crore policies sum assured discount or insane, within 12 months from the
Non-smoker Rs25,760 Rs27,370 Rs1,610pa date of commencement or from the
Smoker Rs36,110 Rs38,410 Rs2,300pa date of revival of the policy, all risks
Tata AIA Sampoorna Raksha premium for 38-year-old male for 25 years term. Standard life
and benefits under the policy shall
assumed (no premium loading) cease and the insurer may only refund
the premiums received.
T
he governments move to (CP), certificates of deposit volatility.
demonetise Rs1,000 and (CDs), treasury bills, short-term There is no exit-load (in most
Rs500 currency notes, debentures, FDs and other similar liquid/UST MF schemes) and, hence,
to curb black money, has led to instruments. Most liquid schemes there is no minimum waiting period
lowering of interest rates on bank invest in instruments with a to remain invested. Moreover, you
fixed deposits (FDs). Low bank FD maximum residual maturity of can get access to your cash fairly
rates, coupled with taxation as per 61 days; UST instruments have quickly. Withdrawals from liquid
individual tax bracket, can schemes are processed
be disastrous for savers. within 24 hours on business
Should you invest in liquid days. If you place a
or ultra-short-term (UST) redemption request by the
mutual fund (MF) schemes cut-off time on a business
instead of bank FDs? day, the redeemed amount
Mutual fund companies are will be credited to your
trying to woo customers, bank savings account on the
knowing that bank savings next business day.
accounts are flush with Investing in a liquid and
cash. Returns on liquid debt mutual fund scheme
and UST MF schemes can also be maturity of one month to one year. with a growth option can help you
affected in the current scenario, but But investors can remain invested defer your tax liability, if you dont
they may deliver better returns than in liquid and UST MF schemes redeem any units. Until redemption,
bank savings account and bank for any duration, even though you have no tax liability which is
FDs. It is possible due to the tax experts say that one should invest in contrast to a bank FD where
benefits (indexation) that come with in liquid or UST MF schemes the tax liability arises even for
investment in these and other debt for short-term purposes. Avoid accrued interest on cumulative FDs.
mutual fund schemes for more than long-term debt schemes which You may not get income until the
three years. will work well as long as interest cumulative FD matures, but you
Liquid and UST MF schemes rates are on a decline. They will have to pay tax on the accrued
invest in commercial paper not work well, once the current interest every year.
G-Sec Yields Decline to a record low level of Rs68.86/US$ due to the belief that Reserve Bank of
Steeply and some experts feel that it could slip
to Rs70-Rs72/US$ in the near term,
India (RBI) may want to conserve its
foreign exchange reserves.
G-Sec yields on 28 November 2016 BSE data as of last trade date of 25 November 2016
Momentum in Action: Between 8th-29th November the Sensex was down 4% but these stocks were up
Mid-cap Large-cap Mega-cap
PNB Gilts 44% Balmer Lawrie & Co 25% Power Finance Corp 15%
Ujaas Energy 37% Quess Corp 19% Sun Pharma 11%
Kovai Medical Centre 28% Advanced Enzyme Technologies 14% Mangalore Refinery 11%
Merck 23% Engineers India 12% Hindustan Zinc 9%
IFGL Refractories 22% Shilpa Medicare 12% Rural Electrification. 8%
Arrow Greentech 15% KRBL 10% Alkem Laboratories 7%
Garware-Wall Ropes 12% Mahanagar Gas 9% Torrent Pharma 7%
Dwarikesh Sugar Ind 12% Cyient 7% Bharat Electronics 7%
Voltamp Transformers 11% Mindtree 7% Tech Mahindra 7%
Nucleus Software 10% VA Tech Wabag 7% Cipla 6%
RPG Life Sciences 9% Navneet Education 7% Cadila Healthcare 6%
Shemaroo 8% Zensar Technologies 6% Bharat Forge 6%
Dalmia Bharat Sugar 7% Sharda Cropchem 6% SJVN 6%
Kellton Tech Solutions 5% Balrampur Chini Mills 6% Natco Pharma 6%
R Systems 5% Thyrocare Technologies 6% Hindustan Petroleum 5%
*Annualised. Since 25 April 2014 *Annualised. Since January 2012 * Annualised. Since January 2012
For small-cap/ low-price stocks with Long-term value stocks. More of mid- Long-term value stocks. Usually large
big growth potential cap stocks to be held for 1 year or more companies are selected
A shortlist of stocks to invest in Weekly market view Weekly market view
Fundamental data we rely on A shortlist of stocks to invest in A shortlist of stocks to invest in
Brief description of the companies Fundamental data we rely on Fundamental data we rely on
Weekly updates on all stocks Weekly updates on all stocks Weekly updates on all stocks
Caution: The returns shown here are much higher than average.
Average annual rise in the Nifty/Sensex is likely to be 12%-14%
per annum over 10 years and more. Well-chosen stocks may
rise by 20%-22% per annum over ve year and more.
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F
or the past several years, Transformers & TRIL is expected to get some further benefits from
Rectifiers India Ltd (TRIL) has not shown any the Make in India requirement that only
major increase in sales or profits. In fact, the companies that have a manufacturing
company had been showing losses or, in a quarter or set-up in India can participate
two, reported some negligible profits. The average in the bidding process of PSUs
growth in sales for the past five years stands (public sector units) /SEBs
at 3.51% and the net profit growth (state electricity boards). This
stands at a negative 65.12%. requirement has eliminated the
However, the scenario competition from Chinese and
seems to have changed in South Korean vendors.
the past three quarters. For FY15-16, TRILs return on
For the quarter ended capital employed (RoCE) was 5% and
September 2016, sales the return on net worth (RoNW) was
growth was 88% -3%. These figures are expected to
y-o-y (year-on-year), improve as the management expects
reaching Rs263.24 crore to increase its top-line and bottom-line
(Rs139.79 crore), and the net figures. TRIL has also managed to bring
profit hit Rs9 crore from a loss of down debtor days to 140 from 156-160
Rs2.35 crore.
The electrical equipment sector has been stagnating
for the past five years. TRIL, currently, has an order Turning Around?
Rs Cr
65
Transformers & Rectifiers
Stand-alone (Rs Cr) Mar-16 Jun-16 Sep-16 35 Free Cash Flows
Revenue 248.05 159.17 263.24
OP 27.58 112.03 127.04 5
OPM 11.12% 70.38% 48.26%
Y-o-Y Revenue Growth 51.78% 156.27% 88.31% -25
Disclaimer: None of the stock information presented constitutes a recommendation or a solicitation of any offer to buy or sell any securities. Information presented is general in nature that does not take into
account your individual circumstances, financial situation or needs Although information has been obtained from and is based on sources we believe to be reliable, we do not guarantee its accuracy and the
information may be incomplete or condensed. All opinions and estimates constitute our judgement as on the date of the report and are subject to change without notice. Past performance is no indication of future
results. Investors must do their own research before acting on them. Data Source: Centre for Monitoring Indian Economys Prowess database.
Those who have subscribed to the stockletters should only follow the stocks recommended there.
B o da l C h e mic al s
Bodal Chemicals
Strong Growth Stand-alone (Rs Cr) Mar-16 Jun-16 Sep-16
Revenue 205.57 270.54 330.95
B
odal Chemicals has reported excellent results OP 30.47 56.45 58.47
for the quarter ended September 2016. Sales OPM 14.82% 20.87% 17.67%
were Rs330.95 crore (Rs254.27 crore), up 30% Y-o-Y Revenue Growth -12.46% 9.92% 30.16%
(y-o-y) year-on-year, and the net profit was Rs34.05
Y-o-Y OP Growth 3.01% 40.96% 48.74%
March Ending FY14 FY15 FY16
RoNW 33.58% 50.57% 36.66%
OP: operating profit, OPM: operating profit margin, RoNW: return on net worth
65
75
45
25 55
5 35
-15
11-12 12-13 13-14 14-15 15-16 Nov-15 May-16 Nov-16
(RoNW) was 13%. Valuation is low, despite profit of Rs155 on 6 October 2016. The share was trading at
growth. The market-cap to sales ratio is 1.15 and Rs111.95 on 24 November 2016.
market-cap to operating profit ratio is 6.26. The Bodals new plant for linear alkyl benzene sulphonic
debt:equity ratio has declined to 0.61 for FY15-16 acid (LABSA) has commenced production from March
from 1.33 in FY14-15, with increased cash flow being 2016. LABSA is an anionic surfactant widely used in
used to pay back debt. The company exited from its all ranges of domestic detergent powders, cake & dish-
corporate debt restructuring programme in September wash cleaners. The total annual capacity of this plant is
2015 and capital expenditure on a new plant is also 18,000MTPA.
over. This should result in higher free cash flows. Bodal has also invested Rs15 crore in Trion
During FY15-16, the company announced two Chemicals Private Limited (TCPL) which makes
interim dividendsof 10% and 20%. The dividend a compound that is a disinfectant, algaecide and
yield of the company, however, stands low, at 0.55%. bactericide (mainly for swimming pools). It is used as
The promoter holding in the company has been a bleaching agent in textiles industry. TCPL is expected
declining and was 65.55% for the September 2016 to start production in H2FY16-17. Bodal will have
quarter (69.67% for September 2015 quarter). Of the a 42% stake in TCPL. The management has planned
balance, 5.30% is held by foreign institutional investors capacity expansion of dyestuff, by 24,000MTPA in
and 29.15% by the public. the next three to four years. Bodal exports its products
The share price of Bodal rose from its 52-week low to over 35 countries and, for FY15-16, 32.25% of its
of Rs38.05 on 26 November 2015 to its 52-week high total sales was derived from exports.
IFB Agro
IFB Agro
Agressive Growth Stand-alone (Rs Cr)
Revenue
Mar-16
130.98
Jun-16
216.07
Sep-16
273.44
I
FB Agro has announced excellent results for the OP 8.79 15.71 13.36
quarter ended September 2016. Sales jumped OPM 6.71% 7.27% 4.89%
by 48% y-o-y (year-on-year) to Rs273.44 crore Y-o-Y Revenue Growth 23.60% 41.23% 47.61%
(Rs185.25 crore) and net profit was up 22% to Rs8.9 Y-o-Y OP Growth 33.99% 20.11% 1.75%
March Ending FY14 FY15 FY16
crore (Rs7.27 crore). The liquor and marine food
manufacturer has achieved an average sales growth of RoNW 20.23% 7.03% 11.69%
OP: operating profit, OPM: operating profit margin, RoNW: return on net worth
7.7% and net profit growth of 26.50% for the past five
years.
Exports, mainly of marine food products, account has been a 14% decline in revenue from exports of the
for around 17.24% of the total sales. However, there marine segment because of the fall in price of shrimp.
Investment Drag
Rs Cr
10
-5
Free Cash Flows
-20
-35
-50
10.69.
-65 The
promoters of
-80
the company hold
-95 64.99% of the total
11-12 12-13 13-14 14-15 15-16
shares of the company; the balance 35.01% is held
by the public. Well-known investor, Dolly Khanna,
IFB Agro has planned expansion of its distillery holds 1.46% of the capital. The share price fell from
facilities for which it acquired a loan worth US$7.5 its 52-week high of Rs518.90 on 6 January 206 to its
million. This loan has made the debt:equity ratio reach 52-week low of Rs327.20 on 22 November 2016.
0.20 for FY15-16. The company had no, or very low, The stock was trading at Rs365 on 23 November
borrowings for the past five years. 2016.
For FY15-16, the return on capital employed IFB Agro, incorporated in 1982, operates in two
(RoCE) was 12.06% and return on net worth segments. One is spirit, liquor and spirituous beverages
(RoNW) was 11.69%. Valuation is low. The market- (grain alcohol and alcoholic beverages) and the second
capitalisation to sales ratio is 0.45 and market- is marine (aqua feed and processed frozen shrimps
capitalisation to operating profit ratio is 7.67. The for domestic and export markets). It also into organic
stock is trading at price to earnings (P/E) ratio of manure.
F
or the quarter ended September 2016, Apcotex conversion cost which affected profits. The paper and
reported sales of Rs92.46 crore (Rs67.84 paperboard segment also faced a slowdown because
crore), a growth of 36% year-on-year (y-o-y). of the shutdown of one of the largest customers of the
The increased sales were partially company. The margins fell further because the price of
contributed by its subsidiary, butadiene, one of the major raw materials, shot up and
Apcotex Solutions India Apcotex was not able to pass it on to the customers.
Private Limited which was Sales of Apcotex were up 9.04% and average net
acquired in March 2016. profit growth was 33.04% over the past five years. It
Apcotex, however, has has also managed to bring down the debt:equity ratio
not been able to to 0.14 for FY15-16 from 0.62 for FY12-13. The
convert its sales into return on net worth (RoNW) and return on capital
profits. For the same employed (RoCE) for FY15-16 was 21% and 17%,
quarter, the operating respectively.
profit decreased by 51% Last year, Apcotex allotted one bonus share of Rs5
y-o-y, to Rs4.62 crore (Rs9.52 each for every one share held. The management has
crore) and the net profit was been paying out dividends regularly for the past five
33% to Rs3.56 crore (Rs5.33 crore). years; it paid 90% dividend last year. The company
It earned 12% of its total sales from exports. has fair amount of free cash flows even after giving out
high dividends. -1
11-12 12-13 13-14 14-15 15-16
For a small company in the commodity business,
the stock is not cheap. The market-capitalisation to
sales ratio is 1.85 and the market-capitalisation to Apcotex, which produces performance emulsion
operating profit ratio is 18.66. The stock is trading at a polymer, was originally formed in 1980 as a division
price-to-earnings (P/E) ratio of 17.76. under Asian Paints and was spun off as a separate
The promoters hold 57.89% of the total shares; the entity in 1991. It manufactures two major products,
rest 42.11% is held by the public. The share price rose namely, synthetic latex and synthetic rubber.
to its 52-week high of Rs435 on 28 August 2016 from Synthetic latex is used in paper, carpets,
its 52-week low of Rs181.50 on 12 February 2016. construction, tyres, paints, textiles and the automotive
The share was trading at Rs325 on 30 November components sector. Synthetic rubber is used in the
2016. footwear industry.
MARKET TREND
Micro-cap
Sale Growth NP Growth
Vijay Shanthi Builders 616% Vijay Shanthi Builders 4783%
Bharatiya Global Infomedia 190% Malu Paper Mills 1314%
Prakash Constrowell 81% Ishan Dyes & Chemicals 1078%
Indo Thai Securities 71% VBC Ferro Alloys 1056%
Fluidomat 62% Vijay Textiles 635%
Small-cap
Sale Growth NP Growth
TVS Electronics 275% Gujarat Apollo Inds. 10762%
Intense Technologies 201% Ponni Sugars (Erode) 7331%
Sphere Global Services 194% Upper Ganges Sugar & Inds 5008%
Inventure Growth & Securities 134% HIL 4467%
Genesys International Corpn 108% Shreyans Industries 2236%
Mid-cap
Sale Growth NP Growth
Ujaas Energy 130% Dynamatic Technologies 2416%
Capital Trust 119% Zuari Agro Chemicals 2192%
Shree Renuka Sugars 110% Atlanta 1481%
Deep Industries 97% Dhanlaxmi Bank 1238%
Centum Electronics 93% Rane Holdings 1073%
Large-cap
Sale Growth NP Growth
Monsanto India 155% Bannari Amman Sugars 1088%
Sun Pharma Advanced Research Co 120% Healthcare Global Enterprises 1080%
8K Miles Software Services 100% Balrampur Chini Mills 880%
Indian Hume Pipe Co 96% Dr Lal Pathlabs 714%
Texmaco Rail & Engg 82% Heidelberg Cement India 667%
Mega-cap
Sale Growth NP Growth
Bajaj Holdings & Invst 140% Biocon 8663%
Ambuja Cements 114% JSW Steel 1844%
Reliance Capital 108% Siemens 1026%
Natco Pharma 93% Indian Oil Corpn 793%
Bharat Financial Inclusion 40% Tata Power Co 748%
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Option1: Do nothing.
Option2: Rely on friends, relatives, neighbours, oce accountant, derived wisdom from social media
or the press/TV. (But do they know more than you? And how do you know that?)
Option3: Rely on relationship managers, insurance agents, distributors, wealth managers. (But you
are only a sales target for them)
Option4: Research insurance, mutual funds, markets, stocks, financial theories Become a financial
expert yourself. (Is this practical?)
About MAS
MAS is a SEBI-registered investment adviser and part of Moneylife, Indias most unbiased and
pro-investor research and information group. We run Indias best personal finance magazine,
Moneylife. We are not afraid to call a spade a spade. We are Indias only media company to have
set up a non-profit trust, Moneylife Foundation, which is now the largest savers and investors
association with more than 35,000 members. MAS was set up to help investors and savers make
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T
here are certain situations under the takeover borrowings from banks and financial institutions against
code (Takeover Regulations) of SEBI (Securities its property, including 18.7% shares out of the promoters
and Exchange Board of India) which mandate an shareholdings. Disputes were pending before the arbitrator
acquirer to make an open offer of shares to the existing arising out of default in payments. The acquirers alleged that
shareholders. Can such an open offer be withdrawn? the most valuable assets of the target company had been
This question came up in the matter of Pramod Jain and encumbered in violation of SEBI regulations and against
Others Vs SEBI [Civil Appeal No.9103 of 2014judgement the interest of minority shareholders and the acquirers.
delivered on 7 November 2016]. Here are the facts of the On 13 April 2012, SEBI declined to permit withdrawal
case. Golden Tobacco Limited (GTC Ltd), a Mumbai-based of the offer but observed that the alleged violations by GTC
company listed on the BSE and the NSE, was the target shall be investigated. SEBI held that, as per the applicable
of acquisition. The acquirers along with a person acting regulation, the target company was entitled to dispose
in concert (PAC) made a public announcement (PA) on of its assets with the approval of the shareholders even
12 November 2009, when they collectively held 6.47% of after the PA. It said that public offer, once made, could
the equity shares. The acquirers were to acquire up to 25% not be withdrawn except in the circumstances provided
of GTC from its equity shareholders in the Takeover Regulations which
at a price of Rs101 (the offer price) had to be construed strictly. It would
per share. At that time, the market also violate the Contract Act, 1872.
price of the target companys shares SEBI observed that the acquirers
was Rs109. and the PAC had already purchased
The offer was for a hostile substantial shares of the target
takeover of GTC. The draft letter company and, thus, could not make
of offer also mentioned that the PAC a PA without exercising due diligence
had given a loan against shares of regarding the financial condition and
GTC and. when it could not repay, quality of management.
the acquirers got shares representing 5.05% of the capital. SEBIs position was affirmed by SAT (Securities
The acquirers and the PAC had also acquired 71,034 Appellate Tribunal), but, at the same time, it observed
equity shares at highest and average price of Rs100.15 that SEBI was wholly unjustified in taking more than two
and Rs89.13, respectively. years for offering its comments on the DLO. But the delay
The draft letter of offer (DLO) was filed with SEBI did not constitute a ground to permit withdrawal of the
on 26 November 2009. During examination of the DLO, PA. The acquirers challenged SATs decision in the Supreme
SEBI got some complaints against the acquirers and PAC. Court. The apex court held that SEBI was not justified in
The acquirers, too, had complaints against GTC and also delaying its response to the DLO, but the acquirers had
initiated other proceedings, including a petition under not made out a case to withdraw the DLO. The apex court
Section 397/398 of the Companies Act before the Company held that the acquirers could not wriggle out from their
Law Board; a suit before the Civil Court inter alia questioned offer by raising untenable grounds as it was their duty to
the transaction for joint development of prime property conduct due diligence before making the open offer. The
with two builders. irony of the situation is that, after traversing all the way to
But, on 8 October 2011, the acquirers asked permission the Supreme Court, the ball is back in SEBIs court as the
from SEBI to withdraw the offer, arguing that SEBI had DLO submitted to SEBI on 26 November 2009 continues
not taken any decision on the DLO in two years during to remain in limbo and no one is any the wiser.
which the GTC management had systematically siphoned
off its coffers, depleted its valuable fixed assets and eroded
its net worth substantially with the intention of making it SD Israni is a corporate lawyer & Fellow
a shell company. So, the very object of the open offer was of ICSI. Email: sdisrani@gmail.com
defeated without any fault on their part. The acquirers also
contended that the management had availed huge high-cost
About MAS
MAS is a SEBI-registered investment adviser and part of Moneylife, Indias most unbiased and
pro-investor research and information group. We run Indias best personal finance magazine,
Moneylife. We are not afraid to call a spade a spade. We are Indias only media company to have
set up a non-profit trust, Moneylife Foundation, which is now the largest savers and investors
association with more than 35,000 members. MAS was set up to help investors and savers make
the right financial decisions and handhold them through the entire process.
MONEYLIFE
ADVISORY
FIX YOUR FINANCES, FOREVER
www.savers.moneylife.in
H
uman genome has millions of times more germ a bad hand in genetic play.
genes compared to the small 23,000 human genes. 3. Even those with strong genetic background could avoid
Unlike what illiterate doctors (illiterate, today, is heart attacks, if they switch to a healthy lifestyle.
one who is incapable of unlearning the wrong things one 4. One does not have to undergo hardships in trying to
has learnt, to re-learn new facts) and greedy biotechnology change lifestyle. For those with extreme obesity, it is
industry, which wants to amass wealth by selling genetic not easy to lose weight. If they just add regular exercise,
counselling, cord blood freezing, stem-cell therapy and hard work, avoided alcohol and tobacco, they could
what have you, tellgenes are the be-all and end-all of alter their genetic risks.
our inheritance. Doctors keep 5. Even minor changes in lifestyle
generating fear in the minds could bring significant benefits.
of healthy young people that, There was near unanimity
if their parents had suffered among all sections of researchers
fatal diseases, they are likely in this area on the wonderful
to develop those diseases. Such results of this study which used
disease-mongering is good for the best statistical methods. An
business but could ruin young on-going study of one million
lives and the mortal fear can, such people is in the pipeline.
by itself, bring on such diseases. The leading researcher of that
It is now well known, for study feels that his outcomes
more than 25 years, that human might just reinforce the results
evolution is not genetic but environmental; while a few of of this study as he was very impressed by the rigours of
the dominant human genes (among the 23,000) might help this study. The results, he said, should quell the cries of
transmit certain genetically inherited disorders, they are those who emphasise that genes are above all as well as
incapable of contributing to chronic lifestyle diseases like those who emphasise that elements of lifestyle are above
heart disease, diabetes and cancer. Evolutionary biologists all. Its not nature or nurture; its both, says the study.
have been shouting from housetops about the ascendency We can now safely say that heredity is not to be feared
of environment, above genes, in evolution and disease like in the past. Most diseases depend on the lifestyle
inheritance. Unfortunately, most of our cross-sectional (environment); to be healthy, one can follow a healthy
short-term small cohort studies generate false positive data lifestyle which is not difficult and is very inexpensive. An
mostly to appease the grant givers needs and they give us appeal through this article to practising doctors is that they
the false impression about disease inheritance. should not scare patients about their bad heredity; it can
The New England Journal of Medicine (12 November now be mended by changing ones lifestyle.
2016) has published a milestone paper on this subject
which looked at a very large set of human beings (more
than 55,000 people) studied for genetic mapping and
lifestyle. It was also significant in that all the 50-odd Professor Dr BM Hegde, a Padma
genes connected with heart attack have been studied Bhushan awardee in 2010, is an MD,
in detail as were lifestyle factors, ranging from really PhD, FRCP (London, Edinburgh,
Glasgow & Dublin), FACC and FAMS.
horrible ones, to simple smoking, drinking and obesity. He can be reached at hegdebm@gmail.com
The study clearly brought out the importance of healthy
T he subtle efforts of
the sugar lobby in
the 1950s to show fat
MEDICAL DEVELOPMENTS FROM
AROUND THE WORLD
immunotherapy drug
approved for first-line
treatment for these
in bad light, vis--vis patients.
sugar, as the main factor behind the LAVISH MEDICAL For decades, I have been writing
killer disease of vessels blocks were CONFERENCES that our own immune system can
eventually found out and the world
was disabused of the false myth
about fat, by the American Diet
I was in Delhi to deliver a
keynote address at a critical-
care meet organised by the GB
cure cancer. This could be done
by the various immune boosters in
Ayurveda which were in existence
Guidelines. It is now known that fat Pant Hospital, department of for eons! Who bothers? Now that
and cholesterol are not the demons critical-care medicine. It was at America says this, our great Indian
the India Habitat Centre on a low medical players will embrace this
budget. Interestingly, I did not see idea. President Jimmy Carter (of
a single drug company banner. The the USA) announced that he is
volunteers only came to fetch me cancer-free now, thanks to immune
from the India International Centre. boosting with this new drug. There
The talks were good and, all in are Indian research groups that
all, it was a good effort to educate have put together methods to even
the audience from many parts of treat heart attacks with immune
India, without a vulgar display boosting. Logically, our immune
of hospitality. Interestingly, I saw system is the in-built healer inside
another intensive-care meeting at the human body.
the Leela Palace, a 7-star facility,
with the speakers staying there.
that they were made out to be; they Posters and drugs were on display
are vital parts of human nutrition, all over. The budget must have run
as every cell in the human body into crores of rupees. Another lavish
must have a strong cell embrace for programme was going on at the
healthy living. The cell membrane Habitat Centre. If there could three
is cholesterol. Body cholesterol is such conferences, in one city, on one
made by our own liver; a paltry day, imagine the total money spent
10% comes from food. The 1972 on those all over India. Imagine,
thinker-professor of nutrition at the for a minute, where all this money
London University, John Yudkin, comes from? Mark my words, when
wrote Pure, White, and Deadly I say that every sick person is paying
about the dangers of sugar. Yudkin, for those meetings. The drug and Humankind has existed
discredited by the sugar lobby, left device prices go up partially due to for 900,000 years, in 50,000
teaching and retired. His book has such lavish hospitality. generations, without any chemical
now been republished. Thank God drugs of the Western medical
for that! Interestingly, the recent CANCER IMMUNE THERAPY system. Cancers are not new
statin recommendation committee
of the American cardiology group
still recommends statins for some
T he Food and Drug
Administration, USA has
approved an immunotherapy drug,
either. So, logically, if surgery,
chemotherapy and radiation were
the only life-savers from cancer,
sub-groups. An investigation about called Keytruda, which stimulates as the rich cancer industry claims,
the team members revealed that the bodys immune system, for humankind should have been
most of them were (are) on the the first-line treatment of patients extinct long before the dinosaurs!
statin manufacturing companys with metastatic non-small-cell lung Now, the new quantum healing
rolls! This is the truth about most cancer. In other words, the drug could help your own consciousness
Western guidelines for medical could be the very first treatment to heal your cancer. I have faith in
management. a patient receives for the disease, that. Let us try.
T
he demonetisation announcement has caught out various functions. Most ATMs across the world
not only money hoarders, but also banks and use Microsoft Windows OS, with Linux and CEN XFS
financial institutional on the wrong foot. What making some inroads in this field as well (Banrisul of
followed was a massive rush either to exchange Rs500 Brazil uses Linux, while Triton, Diebold, NCR use XFS
and Rs1,000 notes or withdraw money from banks. The for their cash machines).
reason for the overload on banks, especially for allowing
customers to withdraw cash, was the non-functioning How Do ATMs Work?
automatic teller machines (ATMs). Many of them are still When a customer swipes her card at the ATM, and verifies
waiting to be recalibrated for the new currency which her identity through the PIN, she is allowed to perform
would take weeks, if not months, before normalcy can transactions like checking balances, transferring money,
be restored. changing PIN
So what (at own bank
exactly is The ATM receives the request and ATM) and so
dispenses the requested amount
an ATM? Customer swipes
on. This routine,
B a s i c a l l y, his/her ATM card The processor transmits approval code back to however, is not
an ATM is the ATM, telling it how much to dispense fixed and some
The ATM dials to the processor and
a machine transmits the customers request ATMs may ask
The network transmits approval
connected for the PIN only
code back to processor
with the after allowing
The processor (i.e. core data) receives the The bank approves the transaction
bank or a request and sends it on to the networks, & submits an approval code back you to enter
financial (i.e. Visa/MC) for approval to the network the transactions
institution details. Besides,
The network requests authorisation
that allows from the cardholders account
Visa and
customers MasterCard,
cardholders account
to perform India has its
various transactions. Never mind, most ATMs across own network, RuPay, developed and managed by
the world are used only to withdraw cash and, hence, National Payment Corporation of India. RuPays fees
sometimes are referred as cash machines. Development are lower than that of Visa and MasterCard.
of ATMs started at various places. However, it was
Barclays Bank which installed its first cash machine on Demonetisation Effects on ATMs
27 June 1967 in north London. It was developed by an As mentioned above, most ATMs are used as cash
engineering team led by John Shepherd-Barron from the dispensing machines. There are different currency
printing company De La Rue. The ATM was called as denominations and, depending on the size of the currency
De La Rue Automatic Cash System or DACS. A small note, the holding slot (cassette) needs to be recalibrated
start-up Spytec was the first company to use a card with or adjusted. During the latest demonetisation drive,
magnetic stripe at the back. In 1965, a British engineer, recalibration of cassettes seems to have escaped the
James Goodfellow, developed the idea of storing a decision-making process, resulting in several ATMs
personal identification number (PIN) on the card which, being unable to dispense new currency notes of Rs500
till date, is used by ATM-makers across the world. and Rs2,000. Considering that India has about 220,000
However, it was IBM that came out with the first true ATMs spread over the country, and the number of
ATM machine named 2984, in December 1972. personnel required to recalibrate each machine, it would
An ATM consists of a central processing unit (CPU), take a few more days before people can use these cash
magnetic or/and chip-card reader, PIN pad, a crypto- machines again. While the recalibration work is going
processor, display screen, function keys (placed near full swing, ATMs are facing the other issue of currency
the screen), printer, vault, housing and sensors and supply. So, unless this demand & supply gap is narrowed
indicators. Just like PCs (personal computers), ATMs or closed, ATMs would be able to dispense only limited
also have an operating system (OS) installed to carry cash to customers.
T
here is a lot of confusion in the minds of people Rs12.50 lakh in current account from 10 November 2016
about the implications of demonetisation of to 30 December 2016. Therefore, those who deposited,
Rs500 and Rs1,000 notes announced by the or are depositing, cash in banks, can expect notices after
prime minister Narendra Modi on the night of February 2017, he said. The Government has said
8th November. To explain what it means from the income- up to Rs2.5 lakh deposited between 10 November and
tax (I-T) perspective, Moneylife Foundation invited Nikhil 30 December 2016 will not be questioned. Income-tax
Vadia, well-known practising tax consultant, to address returns are to be filed for entire year of 2016-17 and
the Foundation members. Mr Vadia explained the history cash deposits and withdrawals for entire year have to be
of demonetisation and its tax implications as well as the explained. Large cash deposits, with no history of previous
burning question: How much cash can one deposit safely? income, would be difficult to explain, he said. He then
However, the most important briefed the audience about the various
aspect of Mr Vadias presentation was provisions of I-T Act which the taxpayers
the revelation that, on 16th November, should be aware of.
the government inserted Rule 12E in Mr Vadia touched upon various
the Income-Tax Act which states: penalties and provisions for prosecution
The prescribed authority under applicable in case of wilful default by
Sub-Section (2) of Section 143 shall assessees under different scenarios. He also
be an income-tax authority not below explained the impact of demonetisation
the rank of an Income-tax Officer... on value added tax (VAT), service-tax
Section 143 covers under-reporting of and benami property transactions, and
income (or what is known as the scrutiny cited the effective taxes payable in select
Section). Earlier, cases under this Section were picked cases. The Act with respect to benami transactions was
by a computerised system or needed the okay of an I-T amended on 1 November 2016 and ensures that those
commissioner. It now gives powers to the lowest rung of trying to evade the law will be taken to task, he said.
the I-T administration, with enormous scope for misuse, Mr Vadia also explained a few cases that had arisen
such as sending notices or scrutiny notices to several after earlier demonetisations. He concluded the session
genuine and tax-compliant taxpayers. with an advice to the audience: Do not panic and act in
Mr Vadia touched upon the history of demonetisation haste. He emphasised the need to think before depositing
undertaken in India in 1946 and 1978 and explained any money and to consult an honest tax consultant before
several fascinating courts cases they attracted. Another taking any action. It is critical that people do not rely on
issue that Mr Vadia highlighted was about the reporting WhatsApp messages, not get caught up in media frenzy,
period for banks to disclose cash deposits in accounts. and believe and disseminate information only from official
By 31 January 2017, banks are required to report all sources. The event was recorded and has been uploaded
cash deposited above Rs2.50 lakh in savings account and on YouTube.
AM
M
R Sinha, chief general manager (vigilance). They
discussed the course of action and then planned
to go to the Chairman, Maneck N Goiporias
house. But they were told that Goiporia was out
meeting
eeting somebody and would return only after
10 pm.
m. It was then that Khemani and Subba Rao
decided that Sitaraman should be called back.
Theyy even sent somebody over to the branch
and broke
roke open Sitaramans drawer. It was a
desperate
sperate move. There was nothing there...
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SIMPLY BRILLIANT
W
hich was the best-performing stock in the US machines stores at factories, warehouses, construction
in the 25 years, following the Black Monday sites.
crash of October 1987? When Bloomberg- What makes Fastenal tick? The companys goal is to
Businessweek went searching for the answer, it did not end make its staff, entrepreneurial, self-drivenwork like
up in Apple (Silicon Valley), or Microsoft (Redmond) or you own the business it. When you trust people to solve
Berkshire Hathaway (Nebraska). It ended up at Fastenal, problems and make decisions, and then let them go, thats
based in the quiet town near Winona (Minnesota) which when the magic happens, writes Williams. Each of its
has a population 28,000. (Actress Winona Ryder, who 2,700 stores operates as a stand-alone business, with a
was born in nearby Olmsted County, was named after clear leader, profit & loss account and grassroots zeal
the town.) for growth and service. Its human resources approach is
Fastenals shares rose 38,565% in the 25 years after old-school: it recruits many employees while they're still
Black Monday. In contrast, Microsoft was up 10,000% attending college, starts a majority of them in part-time
and Apple was up 5,542%. An investor who bought jobs, prizes lifetime careers, and drills everyone on the
and held $10,000 worth of timeless basics of sales and service.
Fastenal stock in October Gary Polipnick, a senior executive, told Williams,
1987 would have had $3 We call ourselves a blue-collar sales company. When our
million by October 2015. At folks in the stores are doing it right, customers say, This
the time of its IPO in August guy knows my business better than I do. We don't care
1987, Fastenal had 250 where you went to school, we care about what they can't
employees and $20 million teach in schoolwisdom, savvy, entrepreneurial spirit.
of revenue. By 2015, it had To codify and formalise its knowledge base, actually,
more than 18,500 employees Fastenal has created a school of its own, to teach the
and $3.7 billion of revenue. business skills, sales techniques and service mentality
To understand this incredible around which its bottom-up culture is built. The Fastenal
story, Williams travelled to School of Business, launched in 1999, has 39 instructors,
Fastenals headquarters, 20 campus locations, and more than 300 different courses,
as he did for all the other from 10-minute e-learning modules to one-week and two-
fascinating organisations in week programmes.
SIMPLY BRILLIANT this book. Fastenal designs and develops all the course material
WILLIAM C TAYLOR Fastenal is into one of the itself. It even offers introductory courses in welding and
Penguin UK most mundane businesses; it metalworking, to help salespeople relate to their customers.
Pages 272; Rs1,250 sells industrial products such Nearly 9,000 employees spent time in the classroom in
as nuts and bolts, cutting 2014, and the workforce as a whole completed nearly
tools, safety equipment, lighting and all sorts of specialty 280,000 online courses. It also publishes a widely read
parts that are needed in factories, mills and construction paperback, The Little Blue Book of Customer Service,
sites. It has 11 factories worldwide that can manufacture which has become a bible of sorts for parables on how to
anything, from fasteners to specialty parts for Arctic energy treat customers, writes Williams.
exploration, mining, and manufacturing, for all kinds From this small town in Minnesota, travel to another
of technically demanding endeavors, writes William C less-known location in the USKingsport, Tennesseeto
Taylor, the author of Simply Brilliant. Fastenal likes to say Pals Sudden Service, which sells standard fast-food like
about itself: We make the unavailable part available. hamburgers, hot dogs, chicken sandwiches, fries and shakes
Fastenal employs more than 18,500 people who work in from 28 locations in northeast Tennessee and southwest
nearly 2,700 stores, with locations that stretch from the Virginia, all within an 80-mile radius of its home base.
countrys biggest cities and industrial centres to remote, What is so great about this company? Pals does not offer
rural communities. Its online catalogue offers hundreds sit-down service. Customers pull up to a window, place
of thousands of different items. It has installed more their orders with an employee, pull around to the other
than 60,000 fully customized and automated, vending side of the facility, take their orders and drive off. Other
-955
120
-1,490 FII Net Investments
(Rs Crore)
110
-2,025
21 Nov-16 30 Nov-16
840
Indoco Remedies 283.00 257.90 -9% Bovespa advanced 3%, while Hang Seng, Nikkei
Mid-cap Gainers/Losers 18 Nov 30 Nov Change
and Shanghai Composite rose 2% each. The FTSE
and NASDAQ Composite ended flat.
Ajmera Realty & Infra India 102.50 153.40 50%
* 20 O 16 ** 1 N 16
Money Fact.indd 2 02-12-2016 18:52:12
MONEY FACTS STOCKS
Whats H T
Shares of non-ferrous metals companies were in demand during the
fortnight. Gravita India, Arcotech, National Aluminium, Hindustan Zinc and
ML SECTORAL TRENDS
Shares of non-ferrous metals
companies and paper & paper
Man Industries advanced 19%, 15%, 14%, 13% and 11%, respectively. products companies advanced 11%
each. Shares of paints companies
Companies 18 Nov 30 Nov +/- and petrochemicals companies
advanced 9% and 8%, respectively.
ML Non-ferrous Metal Index Gravita India 35.45 42.05 19%
Stocks of banks and retail companies
175 Arcotech 348.90 400.25 15% fell 2% and1%, respectively. Stocks
National Aluminium 50.20 57.10 14%
of refinery companies rose 1%.
160
Hindustan Zinc 249.80 282.60 13%
145 ML Sectoral Trends
Man Industries 43.90 48.75 11%
Non-ferrous Metals 11% Banks -2%
130 Hindustan Copper 55.35 58.90 6% Paper & Paper Prod 11% Retail -1%
Hindalco Industries 165.50 175.90 6% Office Equipment 10% Transport & Logistics 0%
115
Paints 9% Refineries 1%
Alicon Castalloy 377.20 398.00 6%
100 Petrochemicals 8% Odds 1%
Ram Ratna Wires 63.85 67.30 5%
Jun-16 Sep-16 Nov-16
All Prices in Rs
FOOD INFLATION