Infosys plans restructuring HR policies

If you are a software professional and thought a single entrance test will secure a seat for you in Infosys campus, think again.

Be prepared to sit for a test every year at Infosys and not just for your engineering skills but also for what the company calls the 'soft skills' which will include how well spoken you are and how you deal with your colleagues.

A credit rating system requires you to appear for a test every year and you can accumulate these ratings over a period of time, so when your eligible for a promotion you can bank on them to climb up the corporate ladder.

This rating will hold for junior to mid management levels and what if you choose not to sit for these tests well, then you will simply will not be promoted despite being eligible.

But will this not deter people from joining Infosys, as the management says on the contrary it will help weed off the underperformers.

However, the management knows only raising the performance bar will not help but they will have to train employees at every level to increase the utilisation rates beyond the current 75 per cent levels.

Rupee down by 12 paise against dollar

Press Trust of India
Thursday, May 22, 2008 (Mumbai)

The rupee on Thursday fell by 12 paise to 42.95/96 a US dollar, recovering somewhat from below 43 level it reached during the day, on fears that erupted after crude oil rose to a record.

Global crude oil prices spiralled to a new record high of above $135 a barrel, raising worries of further upward pressure on inflation.

In a two-way trade at the Interbank Foreign Exchange (Forex), the local currency resumed sharply lower at 43.06/07 and dipped further to a low of 43.20, the level not seen since first week of April, 2007.

Month-end dollar demand from oil refiners and importers also weighed on the rupee sentiment.

But, it recovered later to end at 42.95/96 a dollar, still lower from overnight closing level of 42.83/84.

Dealers attributed late recovery in the rupee to some dollar selling by exporters, who took the opportunity to book profits at higher level.

Sluggish equity markets
Sluggish equity markets also pushed the rupee downward. The benchmark Sensex closed 336 points down. In Asia, barring the Nikkei, most other Asian indices remained distinctly weak following steep fall on Wall Street on Wednesday.

Worries over the possibility of worsening trade deficit that might forced the apex bank to further tighten monetary measures also put pressure on the rupee.

The Reserve Bank on Thursday fixed the reference rate for US dollar at Rs 43.15 and that for single European unit at Rs 68.10.

The rupee premiums on forward dollar continued to move upward and ended strong on sustained paying pressure from banks and corporates.

The benchmark six-month forward dollar premiums payable in October ended at 39-41 paise, higher from 34-35-1/2 paise on Wednesday and the far-forward maturing in April also improved further to 54-1/2 - 56-1/2 paise from 52-1/2 - 54-1/2 paise previously.

Cross currency trade
In cross currency trades, remained bearish and dipped further against the British sterling, the euro and the Japanese yen.

The rupee tumbled against against the pound sterling to end the day at Rs 85.22/24 per pound from last close of Rs 84.18/20 per pound and also eased against the single European currency to Rs 67.67/69 per euro from overnight close of Rs 67.50/52 per euro.

The Indian unit declined against the Japanese yen to close at Rs 41.60/62 per 100 yen from previous close of Rs 41.49/51 per 100 yen.

HSBC to acquire majority stake in IL&FS Investmart

Mumbai, May 17 (IANS) The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) is set to acquire through its group subsidiaries a major stake in India’s leading retail brokerage house IL&FS Investsmart Ltd (IIL). The acquisition amounting to 73.21 percent of IIL is awaiting approval from regulatory bodies. HSBC will be making the acquisition through group subsidiaries,

Robot performs world?s first surgery to remove brain tumour

Toronto, May 18 (IANS) Canadian doctors have created history by performing the world’s first robotic surgery to remove brain tumour. In the landmark surgery, neurosurgeons at Calgary’s Foothills Medical Centre guided a newly developed robotic system - called NeuroArm - to remove an egg-shaped tumour from the brain of a woman. Twenty-one-year-old Paige Nickason was discharged from ...

Lenovo launches online auction of Olympic theme PCs

2008-05-18 14:12:00
Lenovo, Chinese manufacturer of PCs and partner of the Beijing Olympic torch relay, Saturday launched its second phase of three online auctions in India as part of the countdown to the games. The auction features notebook PCs inspired by the Olympic torch and is signed by Saif Ali Khan. Saif was one of the torchbearers who ran ...

Microsoft Windows to come on low-cost laptops

The One Laptop Per Child (OLPC) project will install Windows XP on its low-cost laptops for students in developing countries, according to a joint announcement Friday. The operating system will be offered as an alternative to the project’s home-grown Linux-based operating system. Microsoft is charging the non-profit group just $3 per installation. But hardware changes including ...

Planning an FD? It's time to rethink

The last few months have been quite hard on investors, with highly volatile stock markets and rising inflation working in tandem to erode their wealth. The steep fall in markets and continued volatility had lead to small investors considering shifting their funds to debt funds, and the traditional favourite fixed deposits. However, now that the rate of inflation has hit a 41-month high of 7.41%, thereby threatening to render the real rate of return on FDs unattractive, it is time to rethink.

While it often does not find favour with investment advisors, a sizeable number of small investors continue to repose faith in the ‘safe’ FD. At present, they also feel encouraged by the fact that interest rates are showing no signs of softening in the short-term.

Besides, RBI is expected to hike the cash reserve ratio (CRR) by end April, which could result in interest rates inching upwards, translating into higher returns on term deposits. At a time when investors are scouting for answers, it’s worthwhile to find out how people who manage others’ wealth the financial planners view FD as an investment avenue at this stage.

Says financial advisory firm Transcend director Kartik Jhaveri: “I wouldn’t recommend FDs to anyone at this point in time. The simple question to ask while making the investment decision is: Will the interest earned on FD be able to beat the combined effect of inflation and taxation? The answer is no, because for that, the FD will have to yield a return of more than 10%, which no bank offers at the moment.”

Most banks’ deposit rates today are in the range of 8-9% for 1-5 years. In case some bank is offering a rate of interest higher than other banks, it is essential to verify the credentials of that bank before locking-in your funds into its deposit scheme.

My Financial Advisor director Amar Pandit has a slightly different take on the subject: “In case of people who have already parked their funds in high interest FDs that offer an interest rate of over 9%, staying put would be advisable as they could lose out on the interest otherwise.

However, if they have invested in low-yielding FDs, offering a return of 5-7% and the FD’s maturity is some time away, they can look at exiting it after considering the penalty.” His advice for those who intend to renew the term deposits now or infuse fresh money into the same is to wait and watch. “If the expected CRR hike materialises, FDs can become attractive as the money will become dearer causing interest rates to go up. Therefore, loans as well as fixed deposits could command a higher rate of interest,” he adds.

However, Mr Jhaveri does not believe that the likely CRR hike would have any major impact on returns offered by FDs. “Even if the CRR — and consequently, the bank rate goes up, the increase will be marginal.” His recommendation includes fixed maturity plans (FMPs) and other near-term funds. One needn’t direct all the investment towards equity-oriented schemes, a major chunk can go into debt funds. “Other savings avenues may come with some degree of volatility, but they would at least maintain your wealth, if not grow it. On the other hand, if you invest in FDs in times of high inflation, it will act as a wealth destroyer,” he opines.

And what approach should senior citizens and risk-averse investors who are inclined towards investing in bank deposits adopt? Replies Mr Pandit: “f they must invest in FDs, it’ advisable to wait for some time to get better deals. They can also go for lucrative long-term double indexation FMPs. Senior citizens can opt for 9% Senior Citizens Savings Scheme, PPF (withdrawals) and well-managed monthly income plans, with an equity component of around 20-25%. Additionally, some exposure to debt funds can be taken if the CRR hike takes place.”

Thanks to inflation, you are losing money on FDs

10 May, 2008, 0118 hrs IST,Prabhakar Sinha, TNN

NEW DELHI: Inflation is no longer just eating into your pocket by way of higher grocery bills. It's also eroding the money you've safely put away in a fixed deposit in your bank or post office.

That's because at 7.61%, it is more than enough to offset your interest earnings, giving you negative real returns.

Most banks offer interest in the range of 8% to 8.75% on fixed deposits of tenures ranging from one year to 10 years.

The country's largest bank, SBI, for instance, offers 8.5% on deposits of two years or more, while for shorter duration deposits, it gives 8.75%.

That may seem like it still gives you some positive real return after accounting for inflation, but that's an illusion for most.

This is because the interest income is taxable, even if your deposit is covered by Section 80C of the Income Tax Act.

If your annual income is above Rs 5 lakh, the tax deduction would be at 30.9% (including education cess), which means the effective interest income comes down to 6.05% if the nominal rate is 8.75% and to 5.87% if the rate is 8.5%. In either case, the current level of inflation more than wipes out this return.

Even if your income is lower, between Rs 2.5 lakh and Rs 5 lakh per annum, where the tax rate applicable is 20.6%, the effective interest rate would be between 6.75% and 6.95%, again not enough to give you a positive real return on your deposit.

Real estate and gold, which typically appreciate fast in inflationary periods, are possible options that are relatively risk-free.

Equity could be another option, but that requires a different kind of risk appetite and more in-depth knowledge of the market.

With an annual income below Rs 2.5 lakh current levels of bank deposit rates and inflation give you a marginal positive real return.

With a tax rate of 10.3%, your effective interest earnings on deposits would be between 7.62% and 7.85%, barely allowing you to keep your nose above water.

Courtesy: timesofindia.com

10 money tips from Mom

Your mother may have taught you more about managing your finances than you realize. Here's a list of those lessons.

Think Mom didn't teach you anything about money? Maybe you simply weren't paying attention.

1. "Have a place for everything, and everything in its place."

Ever tried to balance your checkbook or pay the bills when you couldn't lay your hands on one all-important piece of paper? And when are those bills due, anyway?

Organization is "very important in your financial life," says Douglas Borkowski, the director of the Financial Counseling Clinic at Iowa State University. When he was growing up, "Mom and Grandma were the ones who kept things organized," he says.

2. "Don't be late."

Mom was probably talking about school, but the rule applies to money, too. "You'd better pay your bills on time," says Les Kotzer, an attorney and a co-author of "The Family War: Winning the Inheritance Battle." Otherwise, you face increased interest rates, late fees and all kinds of financial penalties, including a damaged credit rating.

3. "You can do anything if you set your mind to it."

It's a fact: Set a goal and write it down, and you're much more likely to attain it. (Think of it as jotting down directions to a place you've never visited.) It works the same for financial goals.

When it comes to income, debts and savings, "you have to know how the pieces fit," Borkowski says.

Tell us: What was the best money advice you got from Mom?

4. "Know your own value."

Financial adviser Kathleen Miller gave her daughter the same advice she gives her clients: Make a net-worth statement every year.

On one sheet of paper, tally what comes in and what goes out. Include what you own and what you owe.

It's a great way to take a yearly snapshot of your financial life, says Miller, the head of Miller Advisors, a fee-only financial-planning firm in Kirkland, Wash. And it doesn't require any special math know-how.

Save the sheets from year to year and you have a "financial diary," which is "a real good way to have a very, very quick review," Miller says.

Vodafone to sell Apple`s iPhone in India

BS Reporter / Mumbai May 7, 2008

Telecom major Vodafone will offer the much awaited iPhone in India. The firm has signed an agreement with Apple to sell the iPhone in 10 of its markets around the globe.

Later this year, Vodafone customers in India, Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network.

However, the company did not disclose the price of iPhone. Business Standard had on April 16, 2008 reported that the price would range between Rs 27,200 and Rs 28,000. It is expected that Vodafone would launch iPhone by the first week of September. Apple sources in Singapore, when contacted last month, had maintained that the India launch would happen in 2008, but did not disclose the exact date.

The Cupertino, California-based Apple said that initially it will launch the 8 GB version of the much-hyped touchscreen device — which combines Wi-Fi capabilities with a powerful email client, TV feeds, online music store and map-based location guide.

Based on buyer response, it will stagger the launch of the 16 GB version in the middle of 2009. Initial sales target for the iPhone in India or unit numbers at the time of launch are not yet available, with Apple wary of grey market sales in India.

"The carrier deal for India is being worked out with Vodafone," said an Apple source, adding: "Vodafone could also become the carrier for the Australian market, once iPhone is launched there, though more than one carrier is likely for Australia."

Reliance Power to quote cum-bonus upto May 29th 2008

Reliance Power clarifies eligibiltiy criterion for shareholders to recieve Bonus Share.

Reliance Power to quote cum-bonus upto May 29th 2008.

Book Closure from June 3- June 5th 2008.

Source: BSE - Reliance Power Ltd has informed BSE regarding a Media Release dated May 05, 2008 titled "Reliance Power clarifies eligibility criterion for Shareholders to receive Bonus Shares". Press Release : "Reliance Power Ltd, on May 05, 2008, clarified and reiterated the eligibility criterion for shareholders entitled to receive the Bonus shares to be issued by the Company. Reliance Power, the company with the worlds largest family of shareholders of 4.2 million, has made this announcement in response to several queries from investors and market participants, seeking clarification on the eligibility of shareholders for the purpose of issue of bonus shares. All shareholders of the Company's records hold shares as at the end of business hours on June 02, 2008, irrespective of whether such shares were subscribed by the shareholders in the Company's Initial Public Offering (IPO) or such shares were purchased from the secondary market or otherwise after the IPO, shall be eligible to receive the bonus Shares. As approved by the shareholders of the Company, Reliance Power will issue Bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 each held, to the public shareholders of the Company. On April 25, 2008, the Company had intimated, the period of book closure being June 03, 2008 to June 05, 2008 for the purpose of determining the eligibility of Shareholders to receive bonus shares of the Company as per the Company's records as at the end of business hours on June 02, 2008." Date: 2008-05-06