Tuesday, 13 November 2012

Darkness of lightning Diwali

The diyas lit on the moonless Diwali night signifies the end of darkness of ignorance and the beginning of light that enlightens all. 

Our traditional use firecrackers in Diwali cause of reasons, possible reason and a more scientific one for lightning firecrackers Is that the fumes produced by them kill insects and Mosquitos found after the rain.

But now people use firecrackers in am amount that it harming the mankind, environment, increasing the pollution.

"Say 'No' to Fire crackers and 'Yes' to life!" 
For most people lighting of firecrackers is the highlight of Diwali. Brighter the sparkles, louder the noise the greater the thrill!! In fact to many of us, these aesthetic forms of light seem so appropriate and most essential when celebrating the 'Festival of Lights'. 

But little do people realize that in our increasingly populated and polluted cities, the temporary joy of watching the firecrackers is soon replaced by the intense air pollution caused by these. The toxic substances used in the firecrackers release toxic gases that are harmful to the health of all living beings. The high level of noise generated by the crackers cause immense suffering to birds and animals. Besides, Diwali crackers are dreaded by the sick and the ailing. 

Sadly, few of us realise that the firecrackers used on Diwali are mostly made by very young children. Since the substances being handled are extremely toxic many of these child labourers get sick and die in their early teenage years. 

Chemical.          Impact

Copper              Irritation of respiratory tract
Cadmium          Anemia and damage to kidney
Lead                  Affects the nervous system
Magnesium     Its dust and fumes cause metal fume fever
Sodium.            Reacts violently with moisture and can attack the skin
Zinc                   Leads to vomiting
Nitrate             Could lead to mental impairment
Nitrite.             Could lead to coma

From the Financial view it is wrong to spread smoke of crackers costing millions of rupees, in the atmosphere crackers worth Rs. 50 crores are burst only in the State of Andhra Pradesh and this is a figure taken from the date of 2012. The present turnover of crackers has gone up to more than Rs. 1000 crores and must have crossed thousands of crores in whole of the country. Is it right to spread smoke of millions of rupees in the atmosphere for celebrating Diwali festival?  

From the phycological point perversion created among small children due to crackers : Today’s children enjoy frightening a beggar by bursting ‘atom bomb’ near him to scare him rather than giving him some food. This is a mental perversion created by crackers.  

Make children take oath in schools that they would not burst crackers. Students from few schools in Mumbai had taken such oath before start of Diwali vacation that they would not burst crackers during Diwali.

Parents! Tell your children that child labour is used in manufacturing of crackers and explain to them why crackers should not be burst !: In the city of crackers in India, i.e. in Shivkashi in the State of Tamil Nadu, child labour is mainly employed in manufacture of crackers. The continuous hard work in factories and pollution due to poisonous gas affects these children’s life very badly hampering their growth. Considering the above, parents should motivate their children for boycotting crackers in Diwali.

America : In a developed country like USA, there is a ban on crackers that make noise. Only sparkling noiseless crackers are allowed to be burst but for that also, permission is required to be taken. If crackers are to be burst on a special occasion, special permission is required. Permission is granted only after ensuring that crackers would be burst at a place away from residential area and would not pose any kind of danger to anyone. It is also seen whether fire-brigade’s service is available at such place. Do we take such safety measures?

Only major citizens are allowed to purchase crackers in countries like New Zealand, Italy, France, Belgium etc. It is necessary that in India too, such law is passed.

This articles endeavours to sensitise the readers towards celebrating an environmentally safe Diwali by pointing out the major impacts that Diwali has on our environment. It is hoped that this articles will encourage you to celebrate a green Diwali, where there will be an explosion of joy without crackers! Please don't invest the money to pollute the environment. I completely avoided the firecrackers from two years, to motivate to the people first I need to change myself. I hope at least one person will realise the effects of firecrackers and celebrate the green Diwali for next year by seeing this post.


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Friday, 9 November 2012

My voice, Why i want to become Entrepreneur...?


I guess I am addressing two categories of people through this post. One – who are still in college and confused about what they have to do in life and two – who have completed college and are still wondering what they are doing with their life!

It’s sad that our youngistaan is utterly confused and wandering here and there without any direction. If you ask them “dude! You’re a mechanical guy, why are you sitting in Infosys campus drive?” He’ll reply – “yaar, I just need a job. I want to earn money”. He’ll join that company, will be fascinated by the amazing glass building and stellar hostels of the MNC and when he’ll be asked to do Java training, things would change into a nightmare for him. The moral of the story is that there’s no point in blindly following others, you MUST identify what your passion is.

The point is that I am not against MNC’s. There are people who love telecom and like the idea of a stable job with Ericsson. It’s great! Go Join. But if you love being your boss and are willing to chase your dreams with extreme passion, you’re bound to become an Entrepreneur. It is said that if you are an Entrepreneur, you’re the CEO, the HR Manager and the peon too. You’re no more the “babu” sitting on the chair all day.

What does it take to become a successful Entrepreneur?
It is passion, passion and passion! You got to have big dreams and the ability to chase them with passion.

 “Passion is the most potent fuel for your dreams”
That’s it – you ought to keep yourself fueled up all the time. 
I want to learn, each and every moment! Grow, each and every moment! That’s what makes an entrepreneur. You MUST be willing and eager to learn.
As Steve Jobs says “STAY HUNGRY, STAY FOOLISH”.

What is the first step?
Have you ever ridden a bicycle? The first move is the most difficult, isn’t it? The first step towards Entrepreneurship requires the maximum courage. First of all, be ready to be scrutinized by your parents, family and neighbors. When you announce that you don’t want to work for a company, you want to own a company! They’ll say that you’re mad! It’s alright. Everyone used to call Einstein mad. Everyone who dares to be different is called mad in the initial days.

Therefore, in the initial stage, COURAGE is on the essentials. You MUST be driven towards your goal, no matter what! You will have to face new challenges every day. And you have to face them with a smile.

Don’t stop BELIEVING! You just have to BELIEVE in yourself and the thing is done.

I deserve something big and I WILL achieve it, no matter what! I took the first step, the second and I am still on the struggling stage. Still, I am happier, richer and better. And, I will NEVER stop trying, no matter what!


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Wednesday, 7 November 2012

The 6 important factors that effect the Gold price

The price of gold is considered as a major indicator of the status of global economy.gold prices depend on demand and supply in the gold market which is dominated by future market and speculation. Central banks can be the biggest player both as a seller and buyer. Gold prices increased because people ran to gold to help them hold on to the value of their savings.
There are 6 main factors that affect the price of gold.

1. Value of US dollar
The foremost factor that governs the price of gold is the value of US Dollar. A stronger US dollar will keep the price of gold controlled and low. A weak dollar will set the price of gold spiralling to a very high price. US economy plays a major role in shaping the macroeconomics of the world. When the dollar is strong, people invest, buy and trade in dollars.
However, in recent times, the US economy has suffered a lot. Dollar has not remained as powerful and promising as ever; this is the reason why people and nations start investing and hoarding in bullion. The high gold reserves strengthen the national economies and act as a hedge against inflation.

2. Production of gold
Due to the rising cost of production in gold mining, strikes by gold-miners, worsening political situation, the sharp increase in the oil prices after the Iraq war, and terrorist attacks, a decline in the gold-mining production has been recorded for the past 5 years. The world population is constantly rising, and so is the demand of investment in bullion. Man has always believed in investing in bullion since ages. So, the prices of gold are also affected by the natural desire of man to hoard gold.

3. Demand for jewellery by the China and India markets
China and India are the biggest buyers of bullion for their jewellery market. In the year 2004, Chinese citizens were granted the ownership of ignot for the first time in history. This triggered a very high demand of bullion, which subsequently affected the price of bullion worldwide. In 2009, a record 32% decrease in the demand for gold-jewellery was recorded, due to the global economic crisis, which resulted in a slight decline in the gold-price.

4. Central Banks
Central banks and mining companies, with a large amount of gold reserve, can and do affect the gold price. By massively selling or buying gold (or reducing the output, in case of mines), these market players can change the gold rate.
But the power of central banks should not be overestimated. First, they hold only 16% of the produced gold. Additionally, the Washington Agreement on Gold (WAG) from 1999 puts a cap on the sales of gold by its members (United States, Japan, Europe, Australia, Bank of International Settlements and the International Monetary Fund). This agreement limits the sale to less than 500 tonnes annually.
Besides huge gold stocks, central banks have another way of directing the gold rate. If central banks increase the interest rate, they make gold investments less favourable, as gold does not produce interests. Therefore, investors would realign their portfolio in favour of national currencies or bonds.

5. Speculation and Investing
Surely, gold is not only bought and sold to govern national economies, but investors also appreciate gold. It can be used as a hedge against inflation (inflation reduces the value of currencies). The gold price is negatively correlated with the US dollar. If the dollar becomes weaker, gold will become more valuable. Speculators can also choose futures and options to even benefit from falling gold rates, and to profit disproportionally from gold price movements.

6. Supply and Demand
This is true of any commodity. If the demand for gold increases (particularly in the Asian markets of India & China) suddenly and the supply cannot meet the demand, the prices will increase. Similarly, if production of gold is hit because of a miners' strike and the supply falls, this will also lead to an increase in prices.Although there are many hidden factors that are said to influence price of gold, broadly speaking, there are only a few factors that certainly do. The remaining factors are generally speculative and not mutually agreed upon.


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Tuesday, 6 November 2012

Complete list of Cabinet ministries and portfolios






There are three categories of ministers, in descending order of rank:

Union Cabinet Minister: Senior minister in-charge of a ministry. ACabinet minister may also hold additional charges of other Ministries, where no other Cabinet minister is appointed

Minister of State (Independent Charge): With no overseeing Union Cabinet Minister for that portfolio

Minister of State (MoS): Junior minister with an overseeing Cabinet Minister, usually tasked with a specific responsibility in that ministry. For instance, an MoS in the Finance Ministry may only handle Taxation

Union council of ministers

CABINET
1. Prime Minister
2. Finance
3. Agriculture, Food and Civil Supplies, Consumer Affairs and Public 4.Distribution
5. Defence
6. Home Affairs
7. Railways
8. External Affairs
9. Health and Family Welfare
10. Human Resource Development
11. Law and Justice
12.  Information and Broadcasting
13. Commerce and Industry
14. Urban Development
15. Petroleum and Natural Gas
16. Housing, Urban and Poverty Alleviation, Tourism
17. Power
18. Heavy Industries and Public Enterprises.
19. Surface Transport and Highways
20. Steel
21. IT and Communication
22. Textiles
23. Water Resources
24. Rural Development and Panchayati Raj
25. Youth Affairs and Sports
26. Chemicals and Fertilisers
27. Labour and Employment
28. New and Renewable Energy.
29. Food Processing Industries
30. Shipping
31. Parliamentary Affairs
32. Overseas Indian Affairs
33. Mines, Development of North-Eastern Region
34. Social Justice and Empowerment
35. Tribal Affairs

MINISTERS OF STATE (INDEPENDENT CHARGE)
1. Civil Aviation
2. Science and Technology; Earth Sciences and MoS in the PMO; Personnel, 3. Public Grievances and Pensions and Parliamentary Affairs.
4. Coal; Statistics and Programme Implementation
5. Corporate Affairs; Minority Affairs
6. Micro, Small and Medium Enterprises
7. Women and Child Development
8. Environment and Forests

MINISTERS OF STATE
1. Road Transport and Highways
2. Health and Family Welfare
3. Rural Development
4. Tourism
5. Shipping
6. Information and Broadcasting
7. Social Justice and Empowerment
8. Information and Broadcasting
9. Health and Family Welfare
10. Tribal Affairs
11. Communications and IT
12. Youth Affairs and Sports
13. Heavy Industries and Public Enterprises
14. Road Transport and Highways
15. External Affairs
16. Water Resources
17. Rural Development
18. Home Affairs
19. Petroleum and Natural Gas
20. Railways
21. Chemicals and Fertilisers
22. Planning, Parliamentary Affairs
23. Commerce and Industry
24. Human Resource Development
25. Textiles
26. Finance
27. Defence
28. Urban Development
29.  Steel
30. External Affairs
31. IT and Communications
32. Labour and Employment
33. Agriculture, Consumer Affairs, Food and Public Distribution 



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Monday, 5 November 2012

Top paid Executives in India



1) Naveen Jindal, the Chairman and Managing Director of Jindal Steel: His annual income is Rs 672051008
2) Kalanithi Maran, the Chairman & Managing Director of Sun TV Network: His annual income is Rs 644000000
3) Kavery Kalanithi, the Joint Managing Director of Sun TV Network: Her annual income is Rs 644000000.
4) Sunil Bharti Mittal, the Chairman & Managing Director of Bharti Airtel: His annual income is Rs 275065408.
5) Brijmohan Lall Munjal, the Chairman of Hero Motocorp: His annual income is Rs 267517728
6) Pawan Munjal, the Managing Director & CEO of Hero Motocorp: His annual income is Rs 264730816
7) BG Raghupathy, the Chairman & Managing Director of BGR Energy Sys: His annual income is Rs 259235008.
8) Pankaj R Patel, the Chairman & Managing Director of Cadila Health: His annual income is Rs 250000000
9) Sajjan Jindal, the Chairman & Managing Director of JSW Steel: His annual income is Rs 208000000
10) Debnarayan Bhattacharya, the Managing Director of Hindalco Inds: His annual income is Rs 173122800
11) Murali K Divi, the Chairman & Managing Director of Divi's Lab: His annual income is Rs 162900000
12) PR Ramasubrahmaneya Rajha, the Chairman & Managing Director of Madras Cement: His annual income is Rs 156263760
13) Jayadev Galla, the Managing Director of Amara Raja Batt: His annual income is Rs 151000000
14) Mukesh D Ambani, the Chairman & Managing Director of Reliance Industries: His annual income is Rs 150000000
15) AM Naik, the Chairman, MD & CEO of Larsen & Toubro: His annual income is Rs Rs 141846000


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Sunday, 4 November 2012

List of billionaires in India


@@@ NAME @@@            @@@ OCCUPATION @@@
1. Mukesh Ambani.                        Petrochemical, oil&gas
2. Lakshmi Mittal.                        Steel
3. Azim premji.                              Software
4. Savitri Jindal.                          Steel
5. Sunil Mittal.                               Telecom
6. Kumar Birla.                             Commodities
7. Anil Ambani.                              Diversified
8. Dilip Shanghvi.                          Pharmaceutical 
9. Shashi & Ravi.                         Diversified
10. Kushal pal singh.                    Real estate 
11. Gautham.                                    Commodities , Infrastructure 
12. Shiv Nadar.                              IT
13. Uday kotak.                             Banking
14. Micky Jagtiani.                      Retail
15. Anil Agarwal.                           Mining, metals
16. Malvindar,Shivindar.             Health care
17. Brijmohan lal.                            Motorcycle 
18. Cyrus poonawalla.                  Biotech
19. Kalanithi maran.                       Media
20. Adi Godrej.                               Diversified
21. Rishad Naoroji.                          Diversified
22. Indus Jain.                                  Media
23. Pankaj Patel.                             Pharmaceutical 
24. Désh Bandhu Gupta.               Pharmaceutical 
25. Ajay Kalsi.                                  Oil
26. Rajan Raheja.                           Diversified
27. G. M. Rao.                                    Infrastructure 
28. Rahul Bajaj.                                Motorcycle 
29. Subhash Chandra.                     Media
30. N. R Narayana Murthy.          Software
31. Chandru Raheja.                          Real estate 
32. Senapathi Gopalakrishna.      Software
33. Vikas Oberoi.                              Real estate
34. Nandan Nelakani.                      Software
35. Ajay Peramala.                           Pharmaceutical 
36. K. Anji Reddy.                             Pharmaceutical
37. Gautham Tapar.                          Paper
38. Venugopal Dhot.                         Electronics
39. Brij Bhushan Singal.                  Steel
40. Benu Gopal Bangur.                  Cement
41. Ashwin Dani.                                  Paints
42. Yusuf Hamied.                             Pharmaceutical
43. Rakesh Jhunjhunwala.            Investment 
44. K. Dinesh.                                     Software
46. Mangal Prabhat.                        Real estate
47. Vijay Mallya.                                 Liquor 
48. Bhupendra Kumar.                     Telecom


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Friday, 26 October 2012

Factors that influence the exchange rate of the currency


Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world. For this reason, exchange rates are among the most watched, analyzed and governmentally manipulated economic measures. But exchange rates matter on a smaller scale as well: they impact the real return of an investor's portfolio. Here we look at some of the major forces behind exchange rate movements.
Overview
Before we look at these forces, we should sketch out how exchange rate movements affect a nation's trading relationships with other nations. A higher currency makes a country's exports more expensive and imports cheaper in foreign markets; a lower currency makes a country's exports cheaper and its imports more expensive in foreign markets. A higher exchange rate can be expected to lower the country's balance of trade, while a lower exchange rate would increase it.


Determinants of Exchange Rates
Numerous factors determine exchange rates, and all are related to the trading relationship between two countries. Remember, exchange rates are relative, and are expressed as a comparison of the currencies of two countries. The following are some of the principal determinants of the exchange rate between two countries. Note that these factors are in no particular order; like many aspects of economics, the relative importance of these factors is subject to much debate.

1. Differentials in Inflation
As a general rule, a country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. During the last half of the twentieth century, the countries with low inflation included Japan, Germany and Switzerland, while the U.S. and Canada achieved low inflation only later. Those countries with higher inflation typically see depreciation in their currency in relation to the currencies of their trading partners. This is also usually accompanied by higher interest rates. (To learn more, see Cost-Push Inflation Versus Demand-Pull Inflation.)

2. Differentials in Interest Rates
Interest rates, inflation and exchange rates are all highly correlated. By manipulating interest rates, central banks exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down. The opposite relationship exists for decreasing interest rates - that is, lower interest rates tend to decrease exchange rates. (For further reading, see What Is Fiscal Policy?)

3. Current-Account Deficits
The current account is the balance of trade between a country and its trading partners, reflecting all payments between countries for goods, services, interest and dividends. A deficit in the current account shows the country is spending more on foreign trade than it is earning, and that it is borrowing capital from foreign sources to make up the deficit. In other words, the country requires more foreign currency than it receives through sales of exports, and it supplies more of its own currency than foreigners demand for its products. The excess demand for foreign currency lowers the country's exchange rate until domestic goods and services are cheap enough for foreigners, and foreign assets are too expensive to generate sales for domestic interests. (For more, see Understanding The Current Account In The Balance Of Payments.)

4. Public Debt
Countries will engage in large-scale deficit financing to pay for public sector projects and governmental funding. While such activity stimulates the domestic economy, nations with large public deficits and debts are less attractive to foreign investors. The reason? A large debt encourages inflation, and if inflation is high, the debt will be serviced and ultimately paid off with cheaper real dollars in the future.  In the worst case scenario, a government may print money to pay part of a large debt, but increasing the money supply inevitably causes inflation. Moreover, if a government is not able to service its deficit through domestic means (selling domestic bonds, increasing the money supply), then it must increase the supply of securities for sale to foreigners, thereby lowering their prices. Finally, a large debt may prove worrisome to foreigners if they believe the country risks defaulting on its obligations. Foreigners will be less willing to own securities denominated in that currency if the risk of default is great. For this reason, the country's debt rating (as determined by Moody's or Standard & Poor's, for example) is a crucial determinant of its exchange rate. 

5. Terms of Trade
A ratio comparing export prices to import prices, the terms of trade is related to current accounts and the balance of payments. If the price of a country's exports rises by a greater rate than that of its imports, its terms of trade have favorably improved. Increasing terms of trade shows greater demand for the country's exports. This, in turn, results in rising revenues from exports, which provides increased demand for the country's currency (and an increase in the currency's value). If the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners.

6. Political Stability and Economic Performance
Foreign investors inevitably seek out stable countries with strong economic performance in which to invest their capital. A country with such positive attributes will draw investment funds away from other countries perceived to have more political and economic risk. Political turmoil, for example, can cause a loss of confidence in a currency and a movement of capital to the currencies of more stable countries. 

7. Activities of foreign exchange markets and speculative currency transactions
 If the rate of a currency tends to decline firms and banks sell it for a more stable currency and it worsens the position of weakened currency. Currency markets react quickly to changes in the economy and politics, fluctuations in exchange ratios. In doing so, they increase opportunities of currency speculations and spontaneous movement of "hot" money.

8. The degree of confidence in the national and world currency markets
It depends on the economy and political situation in the country as well as the factors indicated above which affect the exchange rate. Dealers take into account not only the rate of economic growth, inflation, the purchasing power of currencies, the balance of demand and supply of currency, but the prospects of their dynamics. Sometimes, even the expectation of the publication of official data on the trade balance and the balance of payments or election results affects the ratio of supply and demand and currency rate. Sometimes, in the currency market there is a change of priorities in favor of political news, rumors of resignations of ministers, etc.

9. The monetary policy. The ratio of market and state regulation of the exchange rate affects its dynamics
The formation of the exchange rate on foreign exchange markets through the mechanism of demand and supply of currency is usually accompanied by sharp fluctuations in exchange relations. Real exchange rate forms in the market which is an indicator of the economy, money, finance, credit and confidence in a certain currency. State regulation of the exchange rate is aimed at its raising or lowering on the basis of the purposes of monetary and economic policy.

10. National income is not an independent component that can change itself
However, in general, the factors which lead to changes in the national income have a great impact on the exchange rate. Thus, an increase in the supply of products enhances the exchange rate, while increases in domestic demand reduce its rate. In the long run, a higher national income means higher value of the currency of the country.

11. Market factors
These factors can significantly change the value of currency at short intervals. Thus, the overall expectations for future economic growth, changes in fiscal and foreign trade deficits directly affect the exchange rate. In addition, the foreign exchange market participants' expectations have a significant impact on the value of the exchange rate. Seasonal peaks and downs of business activity in the country have a significant impact on the rate of national currency.

Conclusion
The exchange rate of the currency in which a portfolio holds the bulk of its investments determines that portfolio's real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns. Moreover, the exchange rate influences other income factors such as interest rates, inflation and even capital gains from domestic securities. While exchange rates are determined by numerous complex factors that often leave even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments.


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