Automotive: Automotives above 800 cc are to pay an extra excise duty of 15% this year.

Mobile Phones: Mobile phones costing more than Rs. 2000 will be more expensive in the financial year 2013-14 due to hike in excise duty.

LIC Offices in all Cities: All the cities with more than a population of 10000 will have LIC offices.

Income Tax: Those who have an income between Rs. 2 lakh and Rs. 5 lakh can enjoy a discount of Rs. 2,000/-

Women’s Bank: Chidambaram announced a sum of Rs. 1000 crores for a public sector bank for women.

Post Offices: Core banking will be implemented in Post Offices of the country.

Skill Development for Students: Skill development programmes are allocated with Rs 1000 crores for ensuring better employbility of the unemployed.

Education: Rs.65000 crores is allocated for the education department of the country. Six new All India Institute of Medical Science  will be coming up soon.

Chidambaram also mentioned that the previous year most importance was given to education since that is the best way of developing and will be continued to be the priority this year as well. Scholarships will be still there in the year 2013-14 as well.

Food security: Rs. 10,000 crores is allocated to ensure food security for the upcoming financial year said Chidambaram.

Health: Rs.33000 crores is allocated for the health department of the country.

Agriculture: The sum of agricultural help is Rs.27 crores this year.

Employment Security: There an allocation of Rs. 33,000 for the job security of the individuals of the country in this financial year.

SC/ST: There is a scheme of Rs.28,500 crores for the development of SC/ST individuals of the country.

Rs.3511 crores project is presented for the development of minorities in the country.

Customs Duty: Electrical equipment need not to be paid customs duty this year.

Housing Loans: For the housing loan of Rs. 25 lakhs, there will be a discount of no interest rate for Rs. 1 lakh. This aims to help and promote individuals to have a house of their own as well as to promote the steel industries and construction industries. This is for those who build a house for the first time only.

Chidambaram also mentioned that the parliament will pass the bills at the earliest possible. He also expressed his concern for women and girls in the country and mentioned that the whole country should work as a team for women’s empowerment.

The minister announced a better budget attractive plans for the year 2013-14 offering a modernized railways system including free Wi-Fi internet connections in selected trains, electric self controllable wheel chairs for disabled passengers, new lifts at stations, etc. The railway also intends to improve the current booking of e-tickets which is very slow due to lakhs of passenger using it simultaneosly. This will be given a great importance this year as to make it faster and convenient. The e-ticket booking may be limited to a particular period of the day to solve the issue. The railway will also soon introduce mobile ticket status checking facility. Thus, the passengers can check the availability and status of tickets from mobile phones itself.

There will not be ticket price hikes on travel tickets expect that on Tatkal and Reservation. There will also be an increase of 5% on goods trains. This is a hidden agenda or idea that the ticket rates are increasing. On the other hand, it will not affect the local or passengers. This is to hike the income of the of the railway department.

The minister also presented that complementary pass holders like winner of Olympics,  and awards like Veer Chakra, Keerthichakra, etct will be able to travel on selected A/C trains that to along with a single companion.

The E-ticketing facility is promised to update with latest technology to offer instant ticket booking facility. For this, the e-ticket booking will be limited to a particular period of the day.

100 new trains include 67 Express trains, 27 Passenger trains, 5 Memu trains and 8 Demu trains in the 2013-14 railway budget. All these plans including public-private partnership of railway projects make clear that the railway is on the way to modernization.

A good money management system is seen in the budget 2013-14 foreseeing the election ahead. The fact that there is no hike in passenger ticket rates and the hike in reservation tickets and Tatkal tikckets is evident for this.

]]> http://www.wealthnext.com/2013/indian-railway-budget-2013-14-plans/feed/ 0 http://www.wealthnext.com/2012/wipro-craves-non-it-business-as-separate-entity/ http://www.wealthnext.com/2012/wipro-craves-non-it-business-as-separate-entity/#comments Tue, 06 Nov 2012 06:20:11 +0000 Justin http://www.wealthnext.com/?p=3836 The Wipro decided to separate its information technology business from its consumer care and lighting, infrastructure engineering and medical diagnostics businesses. This will help the company to give more attention on the diverse business fields like IT and non IT industries. The move which, has been speculated about for at least three years, was justified on the grounds that the non-IT business has attained a scale which demands focused attention. While in the operational side the company’s bifurcation will not make much difference. It could help founder Azim Premji comply with the regulation that requires that promoters holding in the company to be capped at 75%.

The Wipro has offered its shareholders three options as part of the separation formula.

1. For every 5 Wipro share face value of 2, get a share of Wipro Enterprises, its share face value 10.
2. For every 5 shares of Wipro, get one 7% redeemable preference share of Wipro Enterprises worth 50.
3. Get one share of Wipro held by promoter for every 1.65 shares in Wipro Enterprises.  If all shareholders choose this option, the promoter’s holding could fall by maximum of 2.7 points to a little over 75%.

In Wipro industries ltd, the company’s 86% overall revenue and 94% of operating profits are contributed by the IT segment.

The decision to separate the IT and Non-IT business of Wipro industries was positively welcomed by the market. The shares of Wipro industries traded in a positive zone after the news flash. The market value of Wipro industries is about 89,000 crore. The company was also listed in the New York Stock Exchange, and the trading was also in the positive zone after the decision to separate the firm.

The Wipro was starts its journey from 29 December 1945 at Mumbai. The founder Mohamed Hasham Premji starts the company name as Western India Products Limited. The company was initially focused on manufacturing of vegetable ghee, vanaspati, refined oils.

In 1966 at the age of 21 Azim Premji took over the chairmanship of Wipro due to his father’s death. He was instrumental in transforming Wipro into a multi-billion dollar diversified corporation. During the 1970s and 1980s, company gave more attention on IT sector and started the IT business. In 1977, the name of the Company was changed from Western India Vegetable Products Limited to Wipro Products Limited. 1982, the name was changed from Wipro Products Limited to Wipro Limited. Wipro entered IT services space in 1981, and has since grown to become India’s third – largest software service exporter.

The company expects that the carving out of IT non IT business will give  more productivity and the Wipro world attains new higher.

• Stocks up to Rs 50,000 into direct equity market can be bought by the new investors who are having an income below Rs 10 Lakh.
• This is a three year lock-in period scheme.
• You can save a deduction of 50% of income tax for every Rs. 50000.
• You can save a tax over above 80c if you hold this investment for three years.

When we consider Rs.50000 in the Indian stock market the amount might sound very small to us. On the other hand, when the same is calculated on a larger scale, the Indian stock market is one of the huge flows of capital in to the market as a whole. It is facts that about 3 crore tax payer citizens of are having an income below 10 lakh threshold.  If every investor decides to invest Rs.50000 each, almost Rs1.5 lakh crores will flow in to the stock market instantly. And the 3 year lock in period will automatically result in saving tax around Rs 5000 for the income category within 10 lacs.

Thus many investors are attracted to this Rajiv Gandhi Equity Savings scheme. As a result, the remote villages’ retail investors over existing schemes available will find a prospective investment avenue on the streets. On the other hand, the very success of the scheme will be totally dependent upon the fact how the brokers will be able to pick up stock for the investors. In such cases, we need to best prefer the large cap investment segment as compared to others. It is because the mid cap and small cap are the runner ups. Therefore, it would be wise to design our portfolio with a mixed bag of large, mid and small cap investments. It is also important to take the midcaps and small caps into account since today’s midcaps become tomorrow’s large caps and today’s small caps become tomorrow’s midcaps.

The stock market analysts well expected that in coming budgets the proposed limit will be hiked so as to draw more savings into stock market. The other side of RGESS that this investment scheme is not an ELSS (Equity Mutual Fund schemes). The target investors for RGESS will be those who do not yet have a depository account at all. The roughly estimated number of Permanent Account Number (PAN) holders with income between Rs. 2 lakh and Rs. 10 lakh is around 15 million who do not have a demat account at present.

It was surprising that the Finance Minister P Chidambaram recently cut the withholding tax on overseas borrowings to 5% from 20% and approved the Rajiv Gandhi Equity Scheme to attract more investment and thereby suppress the demand for gold.

By the introduction of the Rajiv Gandhi Equity Savings Scheme, the Finance Minister expects that it will encourage more first time retail investors to invest in stock market. And this therefore would help easing of tax to encourage overseas borrowing. The realization of the fact of low interest rates abroad will help to bring these funds to India.

Chidambaram on a press conference mentioned about the RGESS that it does not only encourage the flow of savings but also improves the depth of domestic capital markets. It is also aimed to promote an ‘equity culture’ all over India. He added that it is expected to widen the retail investor base in the Indian securities markets too”. The main market analysts of India expect that the RGESS therefore lead the Indian stock markets to new high.

New rates and ratios

Reverse repo rate drop reduces the cost of accessing funds for lending institutions. The drop in these rates will increase money supply and it will favour commercial banks to lend money instead of parking their funds with RBI. Marginal standing facility rate which is the rate at which banks could borrow from RBI one percentage point above repo rate is also drop to 9 from 9.5 per cent.

These changes can make an impact on the sensex of the Bombay stock exchange (BSE). And the rate changes will also lead to economic stability and liquidity. RBI unchanged the cash reserve ratio at 4.75%, which is the rate at which banks must hold fund with RBI. The decreasing rate of money value helps the RBI to slash down the policy rates.

After the Supreme Court’s decision to cancel the 2G licenses, Telenor asked Unitech to give appropriate compensation to meet the losses. Telenor plans to migrate the existing business including staffs and assets. In 2009, Telenor bought stake in Uninor for Rs 6100 Cr. Company also invested another Rs 8000 Cr. Unitech Wireless was renamed Uninor, which has more than 40 million subscribers.

Unitech Wireless is recently slammed the TRAI’s proposal to treat entry fee as non refundable.  It is the new policy by TRAI. The Prime Minster of Norway has talked to the Indian Prime Minister about the recent cancellations of telecom licenses. Uninor is aiming big expansion plans in India and ther are trying to increase to subscriber base to 1 Cr from 40 lakhs. Uninor’s subscriber addition in February is remarkable.

As per the mobile subscription data in February, it is in Gujarat Uninor added maximum number of subscribers. Employees of the company are not wishing to walk away. As per the Supreme Court’s order, 2G licenses of unitech wireless will be quashed on June 2. But the employees and distributors are confident that uninor will be come out from this tragedy. In February, Vodafone added 1.9 million new customers in Gujarat and uninor is in the second position. It added near 1.6 million users in the last month. Uninor has 3.8 million subscribers in Gujarat. Gujarat is a highly completive telecom market with reduced mobile tariffs when compared with Delhi.

Army chief V.K. Singh has written to Prime Minister that, the security of the country is not safe. According to A.K. Antony, V.K. Singh told him that, some equipment middlemen offered bribe to him and he did not want to pursue the matter. A. K. Antony ordered a CBI enquiry based on the news paper reports. In the letter sent to Prime Minister’s office, General Singh said that Indian Tank Fleet was devoid of critical ammunition to defeat the enemy tanks. He also said that the 97% of the air defense is in obsolete state.

There is also a corruption allegation brought by General V.K. Singh. According to C.B.I., if General V.K. Singh file a complaint, then agency can go ahead as a regular case and if not, a preliminary enquiry can be filed. On March 26 he alleged in an interview, that a recently retired officer offered him a bribe of Rs 14 Cr to purchase substandard vehicles and the government did not act on his complaint. The next day, the letter to prime minister was leaked to the media. In Friday, BJP has demanded the resignation of A.K.Antony. The issue was raised in the zero hour of Rajya Sabha. Central Beuro of Investigation has called Ravi Rishi, an NRI business man to question in this case. According to sources, two different cases may be registered. One is for offering bribe and another is for deal. From 1986 onwards, BEML. Assembled, manufactured and supplied 71000 Tatra trucks. All of them have been done in the single nomination basis. Ravi Rishi is the chairman of Vectar Group and the largest shareholder in the tatra trucks. Corruption is smelled in the BEML Tatra deal. The FIR is registered 13(1D) of Prevention of Corruption act.

Nursing and room charges,

Fee of Surgeon, Specialists Medical Practitioner, Anesthetists and Consultant

Operation theater charges

Charges for Anesthesia, blood, oxygen, medicines, drugs etc.

Charges for Diagnostics and laboratory tests.

Cashless facilty is available more than 400 hospitals in the country.

Family floater option is available.

Pre post hospital expenses are covered in this plan. Ambulance charges will be also covered in this plan.

Additional benefits

Pre existing illness after four continuous year renewal will be covered in this plan. This is an advantage of this plan. There will be an option for renewal discount of 15% of the premium. Maternity benefit is available after the renewal of three continuous years.

Sum assured conditions

Minimum sum assured is Rs 200000. Maximum sum assured is Rs 1000000/. Policy term is three years. Policy payment term is 3 years.

Age conditions

Minimum age at entry for primary insured and spouse is 18 years. Maximum age at entry age for primary insured and spouse is 60 years for new policy and 72 years for renewed policy. Minimum entry age for dependent/parents and parents in law is 40 years. Maximum entry age for dependent parents and parents in law is 66 years for new policy and 72 years for renewed policy. Minimum entry age for children is 3 months and maximum entry age for children is 18 years. Maturity age for adults is 75 years and children are 21 years. No additional riders are available in this policy. It is a disadvantage of this plan. If you do not renew the policy, it may be lapsed. There is no loan facility available in this plan.

Tax benefits

According to section 80 (D), insurance premium up to Rs 15000 for normal residents and up to Rs 20000 for senior citizens can be deducted from total taxable income.

Alternative health insurance plan from different companies.

LIC Jeevan Arogya, SBI Life Hospital Cash Plan, ICICI Prudential Health Saver.

Sum assured conditions

If the age at entry is below 45 years, minimum sum assured will be 125% of the single premium. If age at entry is above 45 years, minimum sum assured will be 110% of the single premium.

Minimum premium is Rs 35000. There is no limit on maximum premium.

Death benefit

Sum assured plus fund value will be the death benefit.

Maturity benefit

Fund value will be the maturity benefit. Investment funds in this plan

Preserver Fund

100% of amount is invested in debt, money market and cash instruments.

Defender Fund

Up to 35% of amount is invested in equities and 65% to 35% of amount is invested in debt, money market and cash instruments.

Balancer Fund

40% to 60% of amount is invested in equities, debt, money market and cash instruments according to the market conditions.

Maximus Fund

Up to 70% of amount is invested in equities and 30% to 70% of amount is invested in debt, money market and cash instruments.

Accelerator Fund, Tyseer Fund

90% to 100% of amount is invested in equities and up to 10% of amount is invested in debt, money market and cash instruments.

Charges in this plan

Premium allocation charge

5% of the single premium will be the premium allocation charge.

Policy administration charge

Policy administration charge will be Rs 30/ month in the first three policy years. It can be increased by 6% p.a. from fourth policy year onwards.

Fund management charge

1.25% p.a. in both preserver and defender funds. 1.35% p.a. will be in the other funds.

Mortality charges

There will be mortality charges based on the age at entry.

Service tax

There will be service tax applicable in the mortality charges, rider charges and fund management charges.

Switching

Switching option is available in this plan. Policyholder can switch from one fund to another. Two switches in policy year will be free of any charges. Additional; switches will be charged Rs 100/switch.

Top up option

Top up option is available in this plan. It is not allowed in the last five policy years. Minimum top up amount is Rs 5000/. Premium allocation charge will be 2% of the top up premium.

Partial withdrawal

Partial withdrawals are allowed in this plan. Minimum amount for partial withdrawal is Rs 10000/

It is a famous company involved in the manufacture of stampings for rotating machines and electrical laminations for transformers. Company has manufacturing facilities in Mumbai. Its installed capacity is 24000 MT for stampings and 12000 MT for laminations. Its sales turn over in the third quarter FY 2012 was near Rs 29 Cr. It reported a sales turnover of near Rs 18 Cr in the third quarter FY 2011. Sales had been increased by more than 50%. Company reported a net profit of near Rs 2 lakhs in the third quarter FY 2012. Its net loss in the third quarter FY 2011 was near Rs 3.6 Cr. It is bitter news for the company.

Market cap of the company is near Rs 125 Cr. Book value is Rs 52.43. Price /Book ratio is 2.32. Company is running in loss. 52 week high by the company is Rs 123. Stock price created the 52 week high on 23 March 2012. The stock price also created a 52 week low of Rs 19 on 23 March 2011. It is a very good company from the power sector.  Aggressive investors can buy this stock around Rs 100. Long term target of the company is Rs 160/.

Bhagyanagar India

It is the flagship company of Surana Group. Company is engaged in the manufacture of telephone cables, copper rods and copper allied products. Company has also investment in both real estate and infrastructure sectors. Company has reported a sale turnover of near Rs 40 Cr in the third quarter FY 2012. Its sales turn over in the third quarter FY 2011 was near Rs 39 Cr. A slight growth can be seen in the sales turn over. Company reported a net profit of near Rs 25 Lakhs in the third quarter FY 2012. Its net profit in the third quarter FY 2011 was near Rs 2.29 Cr.

Market cap of the company is near Rs 100 Cr. Book value is Rs 34.23. Price /book ratio is Rs 0.44. The stock price is trading in a high P/E of 65. Company reported annual sales of Rs 190 Cr in the FY 2011. The company is trading below its annual sales. It is a smart company from the sector. 52 week high and low of the stock is Rs 26 and Rs 13 respectively. Long term investors can consider it as a very good buying opportunity. Long term target is Rs 30/.

Stocks recommended by San Joseph