Tuesday, July 30, 2013
Are Telengana people excited?
Mostly, Yes. But they would be really excited if Hyderabad was made their capital and Andhra Pradesh was made to create its own capital.
Are other Andhra people happy?
No. They still think this should not have happened. They are worried about the future of their people in Hyderabad and the future of Hyderabad as such.
Is this really true? Everyone agreed?
Yes. Its hard to believe. But its indeed true. There has been times when Congress said Telengana cannot be formed and a commission will be put to analyze the Pros and Cons and no steps were taken for a long time. Congress, know to be a silent observer and usually doesn't involve in making bold decisions, has made this bold decision through the CWC. We have to wait and see how the resolution in the parliament goes for the formation of the new state.
Future of Hyderabad:
Hyderabad belongs to the Telengana regions. The development of Hyderabad happened because it was the capital of entire Andhra Pradesh. All the people in all the regions of Andhra has helped in developing Hyderabad and making this as an important capital. Both Telengana and Andhra as different states, would like to own Hyderabad. Hyderabad has stalled in creating new developments in the past few years due to political instability. There were no big developments. This city also has faced numerous threats and few areas are always in red alert. When Hyderabad is owned by both Telengana and Andhra, more problems is likely to be created. It is possible that people from Andhra would move into Telengana as usual and take up positions in Hyderabad. But new developments is most likely to be stalled. Time being the great healer, would help in Hyderabad's cause and brings new developments to happen in future.
Most of the people in Telengana itself also believes that United Andhra Pradesh would do more good than separating it to two states. This will cause more bifurcation in other states, which asks for their new state.
As such, this was never an easy decision to make for Congress. They may have been opportunistic to come up with the announcement just before the election time.
Do comment on your views.
Monday, July 29, 2013
Now, McGraw Hill Asian Holdings would like to increase the promoter shareholding in the company through an open offer priced at Rs. 1210/-. The open offer period is from July 24 to August 6, 2013. So, the price would be stabilized around Rs. 1210/- till the end of the offer period and then goes back to the real valuation from the market. McGraw Hill Asian Holdings currently hold 52.77% and would like to increase another 22% through this open offer.
What does it really mean when a company is making an open offer?
If a company is making an open offer, it actually believes in the business more and would like to invest in its vision more. If companies are having excess cash, they can buy back the outstanding shares.
How does it work out?
People who have the company's shares can apply for the open offer. Based on the number of shares tendered, company will give the open offer price to the qualified shares. If the total number of shares tendered at the open offer price is exactly 22% , all the shares tendered would be given the offer price. If the number of shares tendered is more than 22%, say 44%, one in two shares alone would be given the offer price.
Can I buy now? Is it an arbitrage opportunity?
The current quoting price of the stock is Rs. 1185.15/-. The open offer price is Rs. 1200/-. The difference is Rs. 24.75/-. This seems to be an arbitrage. Yes. There is an opportunity. But how big? If you buy the stock now, you will end up paying a brokerage of 0.5 to 1% based on the broker. It sums up to Rs. 11.85/- . After this, you need to pay tax on the profit. This profit will be added to your income and would be taxed at your tax rate. So, if you are in no tax bracket, you can get Rs. 13/- per share as arbitrage.
There is a catch though. Not all the shares tendered will be taken by the company. If everyone tenders their shares (worst case), only one in two shares will be given the open offer price. And, think of the higher risk. If the price of the stock moves down after the open offer (which is most likely based on the previous open offers from various other companies), you will end up making a bigger loss.
Current shareholding stays at
Foreign Institutional Investors: 10.35%
Domestic Institutional Investors: 16.15%
Others (Public) : 20.73%
If the Institutional investors doesn't tender any of their shares, every retail investor who gave his shares would get the open offer price.
The arbitrage opportunity was huge when the announcement of the open offer was made on July 23, 2013. The shares were promptly rose by 20%.
I already have CRISIL shares. Should I subscribe for the open offer?
It really depends on your scenario. The open offer price is better than the secondary market price and this would mean you can make better money by selling to the open offer price. The profit that you make here will be taxed as per your tax slab. This profit will be added as your income. If you stand in more that 10% tax slab and you have bought the shares about a year back, it always works out better to sell it in the Secondary market. This is because, there will be no tax for long term gains as STT is paid in transactions made through the market. So, the additional profit that you get from open offer price is completely wiped off by your taxes.
If you had bought this in less than an year and you fall in 20% tax bracket or less, you need to see how much will be your taxes in both the cases and identify the best case. Hopefully, tendering the shares would make much sense for you here.
CRISIL, as such, is a good share to own. It always have moved from one strong position to another strong position. They have a niche and is a great share to hold. If you want to make use of this open offer opportunity, you can probably sell this now and buy this at a lower price after the open offer.
Let me know your comments and on your decision. All the best.
Tuesday, July 9, 2013
Wednesday, June 12, 2013
Friday, June 7, 2013
Thursday, May 23, 2013
Saturday, May 11, 2013
Friday, April 5, 2013
Everyone understands investing the money is really important. If not, understand that investing is expected to give more returns than inflation. On the other hand, saving money would give depreciating returns compared to inflation.
Primarily, investing everything in one asset class (debt, equity, gold, real estate, liquid funds, cash etc.,) is a bad idea. Based on your current age, the asset allocation should be done. Most of them are over-exposed in real estate.
The rule of thumb is to reduce the exposure on risky investments (equity, mutual funds, ULIP etc.,) and increase the exposure on safe investments (PPF, PF, debt, gold etc.,) as your age increases. Also, the amount in each asset class should be less than 70% ideally.
There needs to be some emergency cash always available for unforeseen emergency need. This would be typically around six months of your expenses.
The primary reason for asset allocation is to diversify and thereby reduce the risk of losing the entire investment because of one asset. For example, if one invests only in real estate and for some reason its down, he would lose his entire wealth. On the other hand, consider a person investing in different asset classes. He invests in equity, real estate and debt according to his age. Even if one asset class is down, the others would assist him in getting returns.
What do you think? have you invested in different asset classes. Are you over exposed to any particular asset class?
Share your comments.
Tuesday, March 26, 2013
For both Men and Women in India,
Income - Tax slab
upto 2 Lakhs - Nil
2-5 Lakhs - 10%
5-10 Lakhs - 20%
Above 10 Lakhs - 30%
This Rs. 2000/- tax credit is not for all the tax-payers. It benefits 1.8 crore people in the income group of 2-5 lakhs. Essentially people who are getting less than 2 Lakhs (tax would anyway be NIL) and more than 5 Lakhs have their tax rates unchanged without any tax credit. For those who are under 2 Lakhs will not be credited Rs. 2000/-
The individuals less than 60 years of age will be paying Rs.2000/- lesser if their income is between 2.2 and 5 lakhs. If they are earning more than 2 lakhs and less than 2.2 lakhs, there will be no tax for them.
Similarly for the senior citizens, if their income is between 2.7 and 5 lakhs, they can reduce their tax liability by Rs. 2000/- before paying their tax. If their income is between 2.5 and 2.7 lakhs, they don't have to pay any tax.
Please note that, submitting Income tax return is mandatory for everyone. Even if you have completely paid the tax liable, it is necessary to submit your returns separately. Also, if you are not liable to pay any tax and have some income less than the taxable income, then also its necessary to submit the tax return.
Let me know your thoughts.
Sunday, March 24, 2013
In common, there are many things to look for when buying or renting a house and I have listed the top 5 things, I think, here.
(1) Good Locality
It is important to see whether it is in good locality. It reminds different things for different sort of people. Good locality can mean one or many of the below
(a) good residential place to live in
(b) few good schools and hospitals around
(c) friendly people nearby
(d) Good roads, have office nearby
(e) departmental stores and hotels nearby
The choice of above things depends on the sort of the people and the life-stage they are in.
(2) Ample ground water supply
Water is a essential commodity and we require water for many things in our life. There should be a bore-well or well with ample ground water supply, which can be enhanced with 'Rain water harvesting' through rain water. If there is a way to get drinking water (Municipality water/ Metro Water) directly to our home, then it is well and good.
(3) Proper sewage disposal
Another very important thing to consider. There should be a proper sewage disposal that can be done. If underground sewage connectivity is made, then it is better. That too, in this world of flats around, it is always to be safe than sorry. If there are more than 500 flats, there should certainly be a way for disposal.
(4) Good Connectivity
There should be good roads around and good connectivity through nearby bus stand/railway station/airport. Based on your job/other needs, there is a possibility that you will have to travel at least infrequently in the future. Its always better to have good connectivity through all the means possible.
(5) Less Pollution
It is another important thing to consider. Pollution is increasing day by day. The kind of noise pollution and air pollution that we experience, when we are traveling, itself is harmful. Its nice to have the house in a walkable distance (less than 1 km) to the nearby bus stops/railway station but not very near it.
Please provide your comments on what you think on the important things to consider while buying/renting a home. What are the things that you look for. Happy to hear.
Monday, March 18, 2013
Saturday, March 16, 2013
When Google search came with a bang and captured most of the search market, it innovated many other new and better products not restricting itself to search engine alone. This gave way to them as a market leader in innovation (probably, Apple and Google fight here for the throne).
Google has a bad habit of forcing the change on customers. Gmail, one of the best mail available in the market today, has always changed itself according to the company's vision. It would have been better if Google had provided the 'customize' option on Gmail to have it configured according to what they like by giving some options. On a funny note, one should be happy that, at least, its alive.
Google announced its going to phase out Google Reader from July 1, 2013. Feedly is the perfect replacement for the Google Reader. It integrates seamlessly and there is complete assurance that it gets all the Google Reader data directly once you give the permission for it access your Google Reader. Also, it has a feature of auto-syncing the changes to you do in Google Reader and Feedly. Also, it has its mobile version, apps, dashboard look and the best of all, the classic look of Google Reader.
I am really disappointed with Google Reader being dumped by Google. As Google User(s), We should always be ready and willing to move away from any of the Google Products. It phased out iGoogle, the dashboard of widgets sometime back and its Reader this time.
Which Google Product(s) you love the most and wouldn't want google to dump it ever. Give it in your comments. Also, Share whether Feedly or any other RSS Feed Reader solved your Google Reader problem. Happy to hear.
Sunday, July 22, 2012
|Know your PAN|
|Your PAN details|
Tuesday, July 17, 2012
Follow these simple steps:
1. Go to the income tax website.
|Income tax india e-filing home page.|
2. Register using the above link. The username will always be your PAN number. If it says you have already registered and you haven't done so, then you might have to call the income tax department to get it resolved. This can happen only if you have given the details to another person for filing your income tax return.
3. Once you have registered, download the relevant ITR form. Use this link. Fill the excel file by following the instructions downloaded. This would ask you to enable macros. The instructions will be present as a README file when you download.
4. Validate the sheet and create XML using the macro buttons available in the excel sheet. This will create the xml file in the same location of the excel sheet.
5. Click on the Select Assessment year as shown in the below screen to upload the XML you created.
|File your returns online|
6. If there is no Digital certificate, select No in the above screen and upload the XML file after selecting the corresponding ITR in this screen. If you have a digital certificate, your returns are filed. Otherwise, you have to send to the CPC, Bangalore address mentioned in the screen to complete the filing of returns. You can send the ITR-V generated within 120 days after filing your returns online.
It has become now mandatory for those who earn more than 10 lakhs to file their returns online.