Friday, 28 September 2012
Sunday, 23 September 2012
Corporate mismanagement- REEBOK
Reebok India case: Corporate mismanagement led to scam PTI NEW DELHI, SEP 23:
Agencies probing the alleged Rs 870 crore corporate fraud in the operation of Reebok India have detected a systemic “mismanagement” in the business planning and running of the company reportedly done by some of its officials and employees. Three different agencies – the I-T department under Finance Ministry, the Serious Fraud Investigation Office (SFIO) under Corporate Affairs Ministry and the Economic Offences Wing of Gurgaon police – have recorded the findings almost four months after a criminal case was filed by Reebok India against two of its former employees.
“The governance and operations in the company were mismanaged. The bills were inflated and not recorded correctly. So, the probe clearly indicates that it was not a corporate scam in the apparel manufacturing firm but it was non-adherence to the rules and guidelines of business procedures in the firm,” sources privy to the probe said. The guidelines under the Companies Act were violated which is suspected to have led to other contraventions like tax evasion, they said.
The I-T department which has indicated to an alleged Rs 140 crore tax evasion in the case, the sources said, will now work to ensure that the company, later, does not claim any “bad debt“. A bad debt is that amount that is owed to a business or individual and has to be written off by the creditor as a loss because the debt cannot be collected because of a host of reasons. “There were no serious borrowings or lendings of Reebok India. The probe agencies investigation will make sure that the firm does not qualify to claim bad debt from anywhere in the later course,” they said.
Probe agencies have also found that some of the officials of the company could have been involved in the inflation of bills and over-valuation of the goods of the firm. In the much publicised criminal complaint filed at the Gurgaon police’s Economic Offence Wing in May, Reebok India had alleged that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in an Rs 870-crore fraud by indulging in “criminal conspiracy” and “fraudulent” practises over a period of time.
Gurgaon police had some days back arrested Subhinder Singh and Vishnu Bhagat along with three others – Sanjay Mishra, Prashant Bhatnagar and Surakshit Bhat. Subhinder Singh and Vishnu Bhagat were booked for fraud, criminal conspiracy and other charges under IPC for allegedly siphoning off the sportswear company’s money by creating ghost distributors across the country and generating forged bills over the last five years. While the I-T department is scrutinising documents related to accounts and imports of the firm, the SFIO is probing the entire governance affairs of the company under Section 235 of the Companies Act.
According to sources, the probe agencies also do not rule out the culpability of accounting officials of the firm at this stage for their “deliberate” or “mistaken oversight” in account books which led to the alleged financial irregularities.
Saturday, 22 September 2012
Most Influential 50 in 2012 Shows Turmoil: Bloomberg Markets
By Robert S. Dieterich - Sep 5, 2012 9:32 PM GMT+0530
Bloomberg Markets Magazine
The ability to move markets or shape ideas and policies. The clout to affect the price of a security or the structure of a deal. These are the attributes that define the people who hold sway in the world of finance -- those who make up the second annual 50 Most Influential list in the October issue of Bloomberg Markets magazine.
To find this year’s 50, we drew on the reporting and expertise of Bloomberg News journalists in 150 bureaus around the globe. The chances of making the list go up if someone finishes at the top of the rankings of hedge-fund managers, economists or investment bankers that Bloomberg Markets publishes during the year.
Recent accomplishments count more than lifetime achievement, and we favor people whose influence is growing. Two-thirds of the people in this year’s list are new, reflecting political turmoil, the deepening euro-zone debt woes and the string of difficulties at big financial firms.
We’ve grouped our list into five spheres of influence -- Corporate Power Brokers, Money Managers, Policy Makers, Thinkers and Bankers. We excluded heads of government from our Policy Makers group in favor of the ministers, lawmakers and central bankers who make policy reality.
CORPORATE POWER BROKERS
Warren Buffett CEO Berkshire Hathaway Inc. (BRK/A) Count on Buffett, 82, to frame new financial controversies with old-line value-investing rules. As Facebook shares slid after the IPO, he said: “You shouldn’t buy a farm because you think you’re going to sell it the next day for more money.”
Chung Mong Koo CHAIRMAN Hyundai Motor Co. (005380) The 74-year-old son of the industrial group’s founder has made Hyundai Motor the world’s No. 5 car company and is making inroads in the luxury segment. Hyundai Motor was the most profitable of the world’s large automakers in 2011.
Tim Cook CEO Apple Inc. (AAPL) While Apple’s market value soared during his first year in the top job, Cook, 51, may need many years to show he’s a worthy successor to Steve Jobs. He also has to live up to his $378 million compensation package for 2011.
John Fredriksen CHAIRMAN Seadrill Ltd. (SDRL) He’s undeterred by the worst shipping market since the 1970s. Fredriksen, 68, the world’s biggest oil tanker owner, is betting $11 billion to extend his dominance over the transportation of energy.
Koch Brothers CO-FOUNDERS Koch Industries Inc. David Koch, 72, and brother Charles, 76, have a combined fortune that’s about $11 billion bigger than Bill Gates’s. The siblings set the standard for American titans who seek influence in politics.
Yuri Milner CO-FOUNDER Mail.ru Group Ltd. The largest Russian-language Internet company was a springboard. Milner, 50, emerged as a global tech heavyweight in 2009 by acquiring the largest stake in Facebook. A $100 million house in Silicon Valley reinforces his stature there.
Ginni Rometty CEO International Business Machines Corp. (IBM) Rometty, 55, rose through the ranks to claim the top job in January at the fourth-largest U.S.
Carlos Slim CHAIRMAN EMERITUS America Movil SAB The fortune of the richest man in the world grew by $12 billion this year as of mid-August, helped by share gains for large holdings. Slim, 72, has been a buyer, with America Movil building the largest stake in Dutch mobile-service provider Royal KPN.
Tadashi Yanai FOUNDER Fast Retailing Co. The parent of the Uniqlo clothing chain is the biggest component of the Nikkei 225 after its shares rose 158 percent in the five years ended in mid-August. Yanai, 63, is betting big on China
Mark Zuckerberg FOUNDER Facebook Inc. (FB) The initial public offering in May and the hype that preceded it and the hand-wringing that followed put Zuckerberg, 28, front and center on Wall Street. Now, he needs to show he can generate ad dollars with his network of a billion or so friends.
MONEY MANAGERS
Cliff Asness CO-FOUNDER AQR Capital Management LLC Asness, 45, grew assets under management at AQR by about two- thirds in 18 months, to $54.5 billion as of June 30. The tally includes $7 billion in mutual funds, which range from an arbitrage product to a fund designed to capture stock momentum.
Hamed bin Zayed al Nahyan MANAGING DIRECTOR Abu Dhabi Investment Authority After the death of his older brother in 2010, Sheikh Hamed assumed the top job at Abu Dhabi Investment Authority, one of the world’s three largest sovereign-wealth funds, according to research firm Preqin Ltd.
Chase Coleman FOUNDER Tiger Global Management LLC A 37-year-old protege of Julian Robertson, Coleman claimed the top spot in Bloomberg Markets’ February ranking of the best- performing large hedge funds, on the strength of a 45 percent return over 10 months. “I would always bet on Chase,” Robertson says.
Leon Cooperman FOUNDER Omega Advisors Inc. Average annual returns of more than 13 percent over two decades distinguish Cooperman, 69, as a stock picker with staying power. The question he asks to find value: “What’s ridiculously priced now?”
Ray Dalio FOUNDER Bridgewater Associates LP At the helm of the largest hedge-fund firm, Dalio, 63, mostly has kept the scale of the operation from damping returns. While his flagship Pure Alpha fund lost 3.9 percent in the first half of this year, it had still returned 91.5 percent over three years.
Mary Callahan Erdoes ASSET MANAGEMENT CEO JPMorgan Chase & Co. (JPM) As the top executive in the bank’s global asset management division, Erdoes, 45, runs an organization that managed a cool $1.4 trillion as of March. That includes a hedge-fund group that, on its own, would be the world’s third biggest.
Larry Fink CEO BlackRock Inc. (BLK) Fink, 59, runs the world’s largest asset management company, with $3.56 trillion as of June 30. He’s been telling governments and companies how to handle their investments; now he wants BlackRock to give advice to individuals too.
Bill Gross CO-CHIEF INVESTMENT OFFICER Pacific Investment Management Co. After trailing peers in 2011, Gross, 68, got the world’s largest mutual fund back on track. As of July 31, the Pimco Total Return Fund was beating 98 percent of similar funds both year to date and over five years.
Jeffrey Gundlach FOUNDER DoubleLine Capital LP With an average annual return of 13.9 percent for his flagship bond fund, from its inception in 2010 through July, Gundlach, 52, is beating his largest rivals. His firm is up to about $40 billion under management.
Michael Platt FOUNDER BlueCrest Capital Management LLP His $32 billion firm is among those that profited from the London Whale’s failed trade. Platt, 44, was up 3.9 percent year to date through July in his international macro fund and 2.6 percent in his BlueTrend fund.
POLICY MAKERS
Mamata Banerjee CHIEF MINISTER West Bengal Her Trinamool Congress party, part of the ruling coalition, has stalled Prime Minister Manmohan Singh’s economic reform agenda by opposing foreign retailers. Banerjee, 57, won a landslide in West Bengal in 2011 to end 34 years of communist rule.
Ben S. Bernanke CHAIRMAN U.S. Federal Reserve Bernanke, 58, is either dooming millions to joblessness because he’s politically timid or debasing the currency, depending on which columnist or candidate is speaking. Either way, he’s established himself as one of the most powerful central bankers in history.
Preet Bharara PROSECUTOR U.S. Department of Justice With 66 insider-trading convictions so far during his tenure as U.S. Attorney for the Southern District of New York, Bharara, 43, has established himself as the watchdog with bite. He’s in the post that launched Rudy Giuliani’s political career.
Mario Draghi PRESIDENT European Central Bank When he cut interest rates at his first meeting as president, Draghi, 65, defied his staff and showed he would plot a different course than predecessor Jean-Claude Trichet. Markets are testing his vow to do whatever it takes to save the euro.
Timothy F. Geithner SECRETARY U.S. Treasury Regardless of who wins the presidential race, Geithner, 51, plans to step down. Yet he still has the power to be a thorn in the side of leaders in Europe , pushing them to act more decisively to strengthen the currency union.
Paul Ryan CHAIRMAN House Budget Committee A member of the Young Guns, who rose quickly to challenge older Republican leaders in the U.S. House of Representatives, Ryan, 42, is no compromiser. Now the Republicans’ vice presidential candidate, he was on the Bowles-Simpson commission and voted against the final plan.
Aung San Suu Kyi CHAIRPERSON National League for Democracy Suu Kyi, 67, now in Myanmar Myanmar
Adair Turner CHAIRMAN U.K. Financial Services Authority Turner, 56, together with Bank of England
Janet Yellen VICE CHAIRMAN U.S. Federal Reserve Yellen, 66, has led Ben S. Bernanke’s drive to make the central bank more transparent. Her success at pulling inflation hawks and doves together might make her a candidate to succeed her boss.
Zhou Xiaochuan GOVERNOR People’s Bank of China As investors worldwide contemplated China
THINKERS
Maury Harris CHIEF ECONOMIST UBS Securities LLC The team led by Harris, 65, had the most-accurate predictions of U.S. U.S.
Glenn Hubbard DEAN Columbia Business School Hubbard, 54, a Mitt Romney adviser, says short-term stimulus won’t do much for the economy, while tax reform that cuts marginal rates will. Hubbard was chairman of the Council of Economic Advisers when the Bush tax cuts were born.
Alan Simpson FORMER SENATOR U.S. Congress The debt-reduction blueprint created by the commission Simpson co-chaired, known as Bowles-Simpson, has a following among businesspeople, bankers and former lawmakers, if not incumbent politicians. Simpson, 81, keeps lobbying for it.
Hans-Werner Sinn PRESIDENT Ifo Institute The most popular economist in Germany
Nicolas Veron SENIOR FELLOW Bruegel Veron, 40, was an early advocate of a banking union as a way to tamp down the euro-zone debt crisis. He splits his time between his Brussels think tank and the Peterson Institute for International Economics in Washington
BANKERS
Lloyd Blankfein CEO Goldman Sachs Group Inc. (GS) Amid cost cuts and job reductions, Goldman’s shares were up 18 percent year to date through yesterday, while Morgan Stanley (MS) shares had gained just 2.5 percent. Blankfein, 57, has won back some influence in part by simply keeping the firm out of the headlines.
Emilio Botin CHAIRMAN Banco Santander SA Although running a Spanish lender might seem a tenuous position, Botin, 77, has seen his efforts to expand and diversify pay off. Santander , which gets a majority of its profit outside Spain
Jamie Dimon CEO JPMorgan Chase & Co. The trade that sank the London Whale cost the bank more than $5.8 billion and undermined its CEO’s message on excessive regulation. Still, Dimon, 56, showed he can be contrite, and the company still made $10 billion in the first half of this year.
Isabelle Ealet CO-HEAD OF SECURITIES Goldman Sachs Group Inc. Ealet, 49, was promoted this year when two of four people running sales and trading left. A native of France, she and co- heads Pablo Salame and Harvey Schwartz oversee businesses that generated 60 percent of Goldman’s revenue in 2011.
Andre Esteves CEO Grupo BTG Pactual The Brazilian investment banker is building BTG Pactual into a Latin powerhouse. Esteves, 44, has set his sights on what he calls the wounded U.S.
Anshu Jain CO-CEO Deutsche Bank AG (DBK) Jain, 49, became co-CEO on June 1 and is scheduled to lay out his strategy in more detail this fall. For now, he is cutting about 1,900 jobs by year-end -- 1,500 of them in the investment bank, which he used to run. He’s also reducing compensation.
Jiang Jianqing CHAIRMAN Industrial & Commercial Bank of China (601398) Ltd. The head of China South Africa to America , where the company is buying 80 percent of the U.S.
Gerald McCaughey CEO Canadian Imperial Bank of Commerce Canada
Ruth Porat CFO Morgan Stanley With the market treating the firm’s debt as riskier than that of rivals, Porat, 54, has been leading an effort to revamp Morgan Stanley’s funding. She’s taken steps to get more deposits, eliminate commercial paper and improve liquidity.
John Stumpf CEO Wells Fargo & Co. Stumpf, 58, has moved into investment banking and set a goal of doubling investment management. Not the best-known name in global finance, Wells Fargo has nonetheless become the biggest U.S. bank by market capitalization.
(Click here for a slide show of Bloomberg Markets magazine’s 50 Most Influential.)
To contact the reporter on this story: Robert S. Dieterich in New York
Euphoria in STOCK MARKETS!!!!
The Euphoria/Exuberance in
the stock markets are always temporary…unless the investors professionally
invest in and take away the profits at the right time…..normally get trapped in
the boom time….tend to keep their investment for more gains and averaging while
falling… become a huge burden to carry for more losses..book the LOSSES at the
bottom of the trough.
The tides of "Highs and
Lows"- a natural phenomena in the stock markets. Most of the company’s
valuations rise phenomenally in the boom times but bust in the economic down
turn. The retail investors get attracted to markets in the BOOM time and burn
their fingers during the down turn due to lack of understanding of the stock markets behavoiur.
I can say, fails to follow the ”RULES OF THE GAME”…some examples…of my choice….
The News Head lines…made as…”THE BEST
BUYS” from any Indian company is non other than Tata steel acquiring CORUS in
Jan-2007 for 12.04 billion USD. The company at one times was the world’s best
low cost steel producer but with a 56th rank in volumes, now 3rd largest in the world with Corus
acquisition.
What it means to the Investors, who
invested in Tata Steel when the high profile coverage was in the headlines. The
stock jumped from Rs Rs 450-430 range in Jan-Feb-07 to a high of Rs 1048 in
Oct-07. The jump in volumes is directly proportional to the profits, but the
prolonged recession made the differenc…….and now….????.
Now after 5 years, a series of down
turn put the TataSteel stock falling from a High of Rs 1050 in OCT-2007 to a
low of Rs 150, DEC-08. For example a retail Investor invested Rs ONE LAKH has
to become Rs 2 LAKH by now,(…incase made fixed deposit) means the price of Tata
Steel should be close to Rs 2100 by now.
The amount that was invested at the
high by a common investor for good returns….waiting…lack of exit capacity…to
book the loss is no joke….now the inefficiency of not taking a right decision…
a pretext of consoling once own heart burn fact…in the name of LONG TERM
INVESTMENT…it is a good company…TATA company…the price will come sooner than
later…..The above statements have no value when it comes to STOCK MARKETS. I
used to mention to my close friends that the “Bourses” are “Slaughter Houses”
for retail/novice investors.
In the boom times the retail investor
see more positive headlines, thinks every thing rosy….gets free tips…. Lured by
the rise in the Index and come with their hard earned money to gain some extra
money…thinking…as if every-thing is made ready…JUST BUY…Take away HUGE PROFITS.
This is not the case at any time in the STOCK MARKETS.
Take the Case of TATA MOTORS… started
its operations in 1954 in collaboration with German auto major Daimler Benz.
The Company has grown from then to world 18th largest auto maker, 4th largest truck manufacturer and 2nd largest Bus manufacturer.
The Company bought the Jaguar and Land
Rover in 2008 for 2.5 UDS from Ford Motors. In March-Apr-08 when the deal was
completed, the stock was ruling Rs 711-600 range, High was at Rs 816 in Jan-08.
In case the same Retail Investor invested at the High at Rs 800, the stock fell
to a low of Rs 122 in Nov-08 along with the general fall across the globe in
the Stock markets ….as the stock market journey is a perennial one, continued
till date and will continue…. In the process the Tata Motors stock could touch
a high of Rs 1380 in Dec-10. The stock face value now stands at Rs 2. After the
spilt the stock could touch a high of Rs 320, registered in Apr-12 (equals to
Rs 1600). The investment of Rs ONE LAKH doubled in Just FOUR years….
Tuesday, 4 September 2012
THE REALITY....MADE LOSSSSSSSSSSS
THE OPPORTUNITY IS HUGE BUT THE ELIGIBILITY IS SMALL!!!!!!!!!!!!!
| FUTURES | Q | B | S | Q | P/L | P/L |
| 919.60 | 750 | 905.33 | 750 | 906.11 | 585 | 679582.5 |
| 683.40 | 3500 | 668.83 | 3500 | 667.99 | 2940 | 2337965 |
| 335.90 | 1000 | 329.5 | 1000 | 329.1 | 400 | 329100 |
| 367.30 | 500 | 365.3 | 500 | 365.25 | 25 | 182625 |
| 771.00 | 500 | 767.5 | 500 | 768 | 275 | 384000 |
| 3913273 |
| HIGH | CASH | Q | B | S | Q | P/L |
| 914.80 | ICICIBANK | 556 | 902.28 | 903.09 | 556 | 447.94 |
| 679.00 | JSW STEEL | 4003 | 665.9 | 664.32 | 4053 | 6333.75 |
| 1881.75 | SBI | 50 | 1858.1 | 58 | 1865.82 | 386.20 |
| 333.75 | YES BANK | 250 | 328.1 | 328.6 | 250 | 125.00 |
| 447.90 | RELINFRA | 50 | 441.1 | 445.16 | 55 | 187.96 |
| 332.50 | RELCAPITAL | 26 | 323.25 | 325.1 | 52 | 48.10 |
| 364.95 | TATASTEEL | 16 | 358.5 | 362.78 | 18 | 68.48 |
| 766.30 | MAHINDRA | |||||
| 33.78 LAKHS | 34.33 LAKHS |
POTENTIAL GAIN TO REAL LOSS
THIS KIND OF STORIES ARE QUITE COMMON TO STOCK MARKET PARTICIPANTS THOSE WHO BUILD POSITIONS.....BUT MYSTORY IS MINE...A MINING NEWS...
TOTAL BUYING....NO HOLDING ON ...TILL..MATURITY DEVELOPS!!!!!!!!!!!!!!
TOTAL BUYING....NO HOLDING ON ...TILL..MATURITY DEVELOPS!!!!!!!!!!!!!!
| FUTURES | Q | B | S | Q | P/L |
| 919.60 | 750 | 905.33 | 919.60 | 10702.50 | |
| 683.40 | 3500 | 668.83 | 683.40 | 50995.00 | |
| 0.00 | |||||
| 335.90 | 1000 | 329.5 | 335.90 | 6400.00 | |
| 0.00 | |||||
| 0.00 | |||||
| 367.30 | 500 | 365.3 | 367.30 | 1000.00 | |
| 771.00 | 500 | 767.5 | 771.00 | 1750.00 |
| HIGH | CASH | Q | B | HIGH | P/L | |
| 914.80 | ICICIBANK | 556 | 902.28 | 914.80 | 6961.12 | |
| 679.00 | JSW STEEL | 4003 | 665.9 | 679.00 | 52439.30 | |
| 1881.75 | SBI | 50 | 1858.1 | 1881.75 | 1182.50 | |
| 333.75 | YES BANK | 250 | 328.1 | 333.75 | 1412.50 | |
| 447.90 | RELINFRA | 50 | 441.1 | 447.90 | 340.00 | |
| 332.50 | RELCAPITAL | 26 | 323.25 | 332.50 | 240.50 | |
| 364.95 | TATASTEEL | 16 | 358.5 | 364.95 | 103.20 | |
| 766.30 | MAHINDRA | 766.30 | 0.00 |
| POTENTIAL GAIN I COULD HAVE MADE | 133526.62 | 62679.12 | ||||
Subscribe to:
Comments (Atom)