Tuesday, August 27, 2013

questions of technical

I have a 3-year-old HP AIO Wi-Fi C4588. I am constantly getting a message that the printer cartridge is not detected /missing. It has become very frustrating. In case I decide to go in for a new printer, preferably with air print enabled, what would you advice? I need an AIO.
----------The issue could be cropping up in case the cartridges that you are using are not genuine. If they are, you should report the issue to HP support. For a new printer, you could look at the HP Officejet Pro 8100 e-Printer, which costs R10,999 or so, and comes with wi-fi and air print capabilities. It also has the HP e-print facility, whereby you can send an email to the printer, and it prints. What we like especially about this printer is that the Ink status is displayed on the printer itself, making it easier to understand where the fault is if something goes wrong.



I have an iMac at home and love to listen to music on it. However, it does not have sufficient sound carry to be audible in other rooms. Could you suggest some good brands I could use with my iMac to overcome this problem? I would like good quality sound.
----------The good part about an iMac is that it has bluetooth built-in, and with most new computers coming with bluetooth built-in, you can easily explore a Bluetooth speaker. There are a number of Bluetooth speakers available from brands such as Sony and Bose. Even Logitech and Creative have some interesting features.
Do remember that when you use a bluetooth speaker paired with your iMac, the sound will only come from this speaker. The computer’s in-built speakers would remain silent. This would easily let you listen to music in another room. What more, you can carry the speaker as you move from one room to another.

Five less-familiar names of social sites

Social media, a little removed

UN-FAMOUS FIVE We look at some niche networks that you may not have heard about, but which could be right up your street

Man is a gregarious animal, so we learnt in school. Facebook is probably the cool-est confirmation of the axiom, with every seventh person liking Mark Zuckerberg’sg’s offering to the world (there werere 1.15 billion monthly Facebook users, according to the company’s quar-arterly earnings report last month). Little wonder that several othersers have tried their hands at making so-social media paying proposition. Most failed, some succeeded, but there have been others that address select audiences, and have succeeded after a fashion. We bring you five less-familiar names.

Lift http://lift.do

“Motivation is what gets you started. Habit is what keeps you going,” as the guy said. If you want to be good at something, anything, you need to do it again and again, every day, day after day, till it becomes your second nature, like brushing your teeth before going to bed (do you?). ‘Lift’ can help you stay motivated: it lets you keep tabs on your activities, and also invite friends fromm Twitter and Facebook to join you on Lift. Alternately, you can make e a new set of friends on Lift. . There are groups such as s health and fitness, produc-tivity, personal develop-ment happiness etc. You can also create te your own groups. Lift is available as an App only for the he iPhone, for other er devices you need to use the browser.

PETEREST http://www.peterest.com/

This site is for all things animal. Correction, for all things pet-worthy. Animals, their antics, dressing up pet pooches in pretty dress and posting pretty pictures… your friends on your regular social networks (Facebook, Twitter, Instagram… etc) may not share your enthusiasm, but on Peterest (it can be accessed by Web browser or via their iPhone/Android app), you will find people who share your enthusiasm. Share pictures of your dog’s hair-job, or your horse prancing in your pearls, or your hamster just being himself… and see what others are up to.

Play Up http://playup.com/

There is no sport like watching a game of cricket, said the wag. Sport is always fun with friends, regardless dless of whether you are watching or playing. Play Up p is a niche social media website for sporting activities. . You can connect with other fans, see an event calendar, r, and even share or view favourite moments from a game. me. In case you like more than one sporting event, you can keep k a watch h on them h together. You can also listen to radio commentary of games, and keep up with news from global sporting communities. Play up has an App for Android, iPhone and even the Windows Phone. You can also use it via the Browser.

Qyuki http://www.qyuki.com/

This network comes from India, with AR Rahman and Shekhar Kapoor backing it. Qyuki lets you share content you have developed, whether it is a sketch, a photo, a video or a song. People can rate your creation based on how it made them feel --- like, love, hope, joy, sorrow, pride, anger, fear, humour, wonwonder or downright bored! One can also leave comments, so if yyou are a budding artist, or just like looking at work from bubudding artists, Qyuki lets you do it easily. There is even a sesections for handpicked creations. The premiere section lelets you look at content created by its founders, Kapur aand Rahman. There is an app for Android and iPhone. For o others, use the web interface.

Quipio http://quip.io/

Have a quotable quote that you want to share? Build a Quip, share it, get likes for your quotes or like other people’s quotes… Quipio is a simple place for exchanging pithy ideas, like those dial- a- quotes or your daily quote calendars that had become so popular not too long back. Quipio is also avail- able via their Website and an Android/iPhone application.

PROTECT YOUR WEBCAM…

PROTECT YOUR WEBCAM…


More and more PCs come with built-in webcams these days. With hackers turning ultra-smart, it is important that you secure yourself against someone taking over your webcam. People have gone to the extent of covering their webcams with black insulation tape when it is not in use, but if you follow these steps, you can more or less be sure of keeping peeping toms at bay.

  1. Make sure you have a genuine, licensed operating system and a genuine anti-virus. Make sure you keep them updated
  2. Disable the webcam when it is not in use. It means just one extra click when you need it --- the security is well worth the trouble
  3. If you have Adobe Flash installed on your computer, then activate the option “Block all sites from using the camera and microphone”
  4. Like our friend mentioned above, you could keep the camera covered up when it is not in use. If it is a laptop, keep the lid closed Webcam hijacking is not commonplace yet, but it is happening all the time. A Google search will throw up threads of complaints and discussions. Be safe, be aware, and just in case you are scared, cover it up!

Gionee P2 a budget phone

Gionee P2 

 
    Opting for a budget phone these days does not mean you have to settle for less. The Gionee P2, for instance, offers a great deal of features at a very modest price. Its 4-inch touchscreen, dual-core processor and 512MB are quite adequate for call handling, web and email browsing – and its 5MP rear camera is assisted by features like face detection and essential scene modes. The device does not compromise on connectivity options either: It is equipped with A-GPS and can also function as a Wi-Fi hotspot whenever the need arises.  

Specs: 4-inch, 800x480px | 1.3GHz dual-core processor | 512MB RAM | 4GB internal memory, expandable up to 32GB via microSD | 5MP rear camera, VGA front camera | Dual SIM | Bluetooth 4.0, Wi-Fi, A-GPS | 1700mAh | Android 4.2.1 (Jelly Bean)  

Website: www.gionee.co.in  

Price: 6,499

Micromax Canvas Doodle 2

Micromax Canvas Doodle 2 

 

   Micromax has introduced its second iteration to the Doodle that boasts a quad-core processor to handle the meanest of tasks you might throw at it; its handy stylus     ensuring you don’t miss a     notepad ever. In keeping     with other high-end devices,     this handset sports an aluminium body, and also supports smart gestures: you can silence a call by turning the phone over, answer a call by simply bringing it to your ear, and the Doodle 2 even pauses a video whenever your gaze strays away from the screen. The box pack also includes a protective flip cover that doubles as a kickstand whenever you need to watch a movie.  

Specs: 5.7-inch, 1280x720px | 1.2GHz quad-core processor | 1GB RAM |
    16GB internal memory | 12MP rear camera, 5MP front camera | Dual SIM | Bluetooth 4.0, Wi-Fi, A-GPS | 2600mAh battery | Android 4.2.1 (Jelly Bean)  


Website: www.micromaxinfo.com  

Price: 19,990

F&D’s new Bluetooth speaker

F&D Swan 

 

    The Swan is F&D’s new Bluetooth speaker that can be paired with up to two devices at a time. Connect it to your smartphone, and you can also use its built-in microphone to take hands-free calls. A single charge promises juice for up to five hours of use, making it an ideal accessory for your laptop, tablet or mobile handset.  

Specs: 2-inch, full-range neodymium driver | 2W (RMS) | 60Hz~20KHz frequency response | Bluetooth 4.0 | Li-ion battery, rechargeable through micro USB cable | Microphone | 83×83×80mm  

Website: www.fendaaudio.com  

Price: 3,990

whether I should buy a plasma, LCD, edge-LED, or LED. Also, what is a Smart TV?

I’m looking to buy a new TV during the festive season. I’d like to know what is the best-sized display to buy, and whether I should buy a plasma, LCD, edge-LED, or LED. Also, what is a Smart TV?

    
Given the different technologies being employed today, buying a TV can be quite daunting. Here’s a quick primer to help you buy a set that’s just right for your home...
    Size: For this, consider the distance between your HDTV set and where you and your family will be sitting while watching it. For minimum TV size, the formula is ‘viewing distance/3’, and for
maximum size, it is ‘viewing distance/1.5’. So, if you watch TV from eight feet away (96 inches), your minimum TV size should be 32 inches (96/3), while your maximum TV size could be 65 inches. Now all you have to do is find a model between this range that best fits your budget. 

 
    LCD, plasma, or LED: Of these three technologies, LCD is the cheapest of the lot. It’s bright, fairly thin, and if you’re on a tight budget, then these are TVs worth considering. Besides, LCD sets do not draw too much electricity. On the downside, images won’t look as sharp or realistic when compared to the other two technologies listed here.
    Plasma screens, on the other hand, are capable of the darkest of blacks, smooth picture quality, and flawless performance when it comes to reproducing motion on the screen. This technology is ideal for fast-paced sporting action. However, plasma screens are energy guzzlers, consuming nearly twice the power of LCDs.
    And lastly, there are LCD TVs that use ‘light-emitting diodes’ to illuminate their screens. These sets are known as LED TVs and are further divided into edge-lit LED and Full LED. The former has LEDs around the border of the display, which results in slimmer models. Full LED screens, however, are capable of greater precision in screen lighting, and this means better contrasts and a more vibrant range of colours than is possible with LCDs and edge-lit LEDs. Now while LED TVs are the priciest of all three technologies, they are also most energy efficient, consuming just a third of electricity when compared to plasma TVs.


 
    Smart TV: Depending on your budget you can also opt for a Smart TV. These come with a range of apps for web services such as Skype, Twitter, Facebook, YouTube, Picasa, etc – and connect to the internet via an Ethernet cable or wirelessly through Wi-Fi. Here, you will need to check if the set has Wi-Fi built-in, or is Wi-Fi Ready. For the latter, you’ll need to buy a separate dongle to access your Wi-Fi network.
    Importantly, just because a TV comes with a USB port, does not mean it will support an external hard drive, or will even play videos from a pen drive. So check what digital media formats it supports – and more importantly, if it can read portable hard disks. 


    Viewing angles: And finally, before finalizing a set, check for viewing angles. Some TVs will give you the best display only if you’re sitting right in front of it. Move to the right or left and you will see some shift in colour. This shift is defined by the type of panels used: Twisted Nematic (TN), Vertical Alignment (VA), and In-Plane Switching (IPS). IPS screens offer the best viewing angles, while TN are the worst. Opt for an IPS screen if you are buying a television set for your living room.
    That said, trust your eyes. Before buying an HDTV look for details in hair, look for blurring in sporting action, compare the
colour output and contrast in different models, and check for viewing angles. Also, don’t forget sound quality. The thinnest TVs are not known for the best sound, so you’ll have to keep that in mind.

Prices of mobile phones, laptops, TV sets and printers are set for a second hike

Cos Set To Hike Prices Again In 2 Months Despite Fear Of Slowing Sales, Cite Pressure From Sliding Re


New Delhi: If you have been planning to buy a new smartphone or upgrade to a bigger TV before Diwali, now may not be the best time to go ahead. Prices of mobile phones, laptops, TV sets and printers are set for a second hike in as many months as the sliding rupee has increased costs for companies, forcing them to revise rates just ahead of the crucial festive season.
    Companies said the pressure from a depreciating rupee refuses to ease and uncertainty persists over the currency’s performance against the dollar in the near future. The rupee has slipped 14.5% against the dollar so far this year and fell to a record low of 65.56 last week.
    Coming in the midst of a slowdown, the hike in electronic goods’ prices is expected to further dampen sentiment among buyers already
shying away from new purchases on account of sluggish growth and high interest rates.
    Printer and computer major HP will be raising prices by as much as 8%, and this revision comes after a similar hike in July. “We have no other option, and will be increasing prices immediately,” HP India
president (printing and personal systems) Rajiv Srivastava told TOI.
    Around half the products HP sells in India are imported, while many of the locallymade ones also contain parts procured from overseas. Srivastava said the effect of increased prices is already telling on the market. “There are
certain companies who are trying to reduce, or delay, purchases,” he said.
    Electronics and mobile phone giant Samsung, which had hiked prices by 2-3% last month to factor in the weaker rupee, is also undertaking a fresh revision in select products. Prices of some of its mobile phones and tablets are up by 3-5% again. “We have been compelled to increase prices of some mobiles and tablets to manage the impact of the sharp rupee depreciation on our input costs,” said Vineet Taneja, country head of Samsung’s mobile & IT division.
    Panasonic, Japanese maker of consumer appliances and televisions, is set to raise prices as well. “Panasonic is keenly observing the rupee movement and the quantum of the price hike will depend on the (forex) situation which has created an imbalance in the market. It (rupee fall) might lead to the company increasing prices by 5-7% with
in a few days if the condition remains the same,” said Manish Sharma, MD of Panasonic India. The company is looking at increased B2B (business-tobusiness) sales as well as higher local content on products to protect margins.
    Sony is mulling a hike between 4% and 6% to factor in the higher costs. “The rupee is hitting costs, and we have no option but to increase prices,” said Sunil Nayyar, sales head for Sony India. Sony does not manufacture in India and imports all its products here.
    Nayyar admitted that the timing of the hike was not good as the market was already under pressure. “There is a slowdown in the industry, though Sony continues to grow.”
    Companies fear that the fresh round of price hikes will further slow down demand, which is not good news as most have been banking on the upcoming festive season to revive fortunes.

Saturday, August 24, 2013

Tax Free Bonds or Debt Funds which one is better

Tax Free Bonds or Debt Funds which one is better 

 
The economic downturn is affecting even large corporate. Many of them have seen significant reduction in profits over the last financial year. This has affected their financial strength and so as their loan repayment capacity. Whenever, companies face a financial trouble, they are most likely to be downgraded. Such downgrades compound problems for companies; as they have to pay higher rate to attract money in future. In the present scenario where the short term borrowing rates are high and profitability of companies is under pressure, the list of companies facing downgrades has been increasing. 

Debt Funds investing in corporate debt are exposed to credit risk. When rating on the corporate debt is slashed; bond prices face a downward pressure as yields spike up. This is true especially in case of funds which invest in low quality debt to benefit from high yields.  Taking any call on the interest rate movement would be risky and investors shouldn't speculate. Moreover, investing in a debt fund which compromises on credit quality would be extremely risky. Only those who have a high risk appetite may consider investing in long term debt funds at this juncture provided their time horizon is relatively long. Also, only upto 15% to 20% of your debt portfolio should be in long term debt funds. Debt funds concentrating on shorter end of the yield curve may expose investors to relatively low risk.

Recently, the government has allowed about 13 Public Sector Undertakings (PSUs) to raise Rs 48,000 crore by issuing tax free bonds. The bonds would be available in 10-year, 15-year or 20-year series. Since the bonds would be tax free and be issued by PSUs; they would track the yield on 10 year G-sec bonds and coupon rates may be 0.55%-0.80% lower than the yield on 10-year G-sec benchmark bond,  given the recent jump in G-sec yields, bonds may help you lock your money at higher rate for the longer term. Moreover, their 'tax-free' nature makes them even more attractive for investors falling in 30% tax bracket.

RBI directive on acceptance of deposit by Muthoot Fincorp Ltd. (MFCL) and Manappuram Finance Ltd.

RBI directive on acceptance of deposit by Muthoot Fincorp Ltd. (MFCL) and Manappuram Finance Ltd.
NBFC Deposit Scheme
 
The Reserve Bank of India has directed two Non-Banking Financial Companies (NBFCs), viz., Muthoot Fincorp Ltd. (MFCL) and Manappuram Finance Ltd. (MAFIL) to stop allowing the use of its premises / branches to accept deposits from public by their associate unincorporated bodies.
Muthoot Estate Investment (MEI), was collecting public deposits through the branches of MFCL located in Kerala, which is a violation of the provisions of section 45-S of the RBI Act, 1934. The Manappuram Agro Farms (MAGRO), a sole proprietary concern of Shri V.P. Nandakumar (Executive Chairman of MAFIL) was accepting fresh deposits from the public. MAFIL, which was earlier a deposit taking (Category ‘A’) company, became a non-deposit taking NBFC in March, 2011. However, its maturing deposits were being renewed with MAGRO. Both these actions were in violations of section 45-S of RBI Act, 1934.
 
In the case of the MEI, total amount of deposits from the public and outstanding as on 31.01.2012 was Rs. 1,913 crore. Out of these unauthorized deposits accepted by the unincorporated body, an amount of Rs. 1,173 crore was outstanding as on 30.06.2013. RBI has issued a press release and an advertisement in local newspapers informing and cautioning the public that it was not allowed to raise deposits under the provisions of the RBI Act. RBI has issued a show cause notice to MFCL under section 45-IA of the RBI Act. RBI has also referred the matter of deposit collection by MEI to State Government of Kerala for appropriate action at their end under Chapter IIIC of the RBI Act, 1934 as the State has necessary machinery and reach for action.
RBI had issued directions to the MFCL under section 45-L of the RBI Act, 1934 to desist from associating itself, its premises, branches or officials in any manner with MEI in accepting deposits from the public.
As regards MAGRO, out of Rs. 143.85 crores of public deposits held by MAGRO as on 29.12.2011, there are currently 506 customers with Rs. 93 lakhs in outstanding deposits.
 
A show cause notice was issued to MAFIL on 07.05.2013 for cancellation of its Certificate of Registration under the provisions of section 45-IA (6) of the RBI Act, 1934. Based on the company’s reply and the findings of the scrutiny thereon, it was concluded that MAFIL has taken steps for disassociating its name, officials, etc. from MAGRO and other promoter group entities. At present, MAGRO does not have presence in any of the branches of MAFIL. Further, an amount of Rs. 119.18 crore was transferred to an escrow account maintained with Punjab National Bank towards repayment of deposits. At present, the remaining amount of outstanding deposits is being paid out of this escrow account.
 
This was stated by Shri Namo Narain Meena, MoS in the Ministry of Finance in written reply to a question in the Lok Sabha.

REAL ESTATE REGULATION AND DEVELOPMENT BILL TABLED IN RAJYA SABHA

REAL ESTATE REGULATION AND DEVELOPMENT BILL TABLED IN RAJYA SABHA 

    
The Real Estate Regulation and Development Bill that seeks to protect home buyers from dishonest builders was recently tabled in the Rajya Sabha by minister of housing and urban poverty alleviation Girija Vyas. The Bill was referred to the Parliamentary Standing Committee on urban development for review and suggestions. The cabinet had approved the Bill on June 4. The bill has provisions like a jail term of up to three years if developers put up misleading ads about projects.

CENTRE CLEARS NEARLY RS 1000 CRORES RURAL ROAD PROJECT FOR GUJARAT

CENTRE CLEARS NEARLY RS 1000 CRORES RURAL ROAD PROJECT FOR GUJARAT 

    
At a time when Narendra Modi and Congress are engaged in a war of words, the Centre has cleared a rural road project worth nearly Rs 1,000 crores for Gujarat. Rural develop
ment minister Jairam Ramesh has conveyed to the Gujarat chief minister in a letter that his ministry is sanctioning Rs 970 crores to the state for building 919 rural roads. Gujarat will have to spend about Rs 22 crores. The project has been sanctioned under the Pradhan Mantri Grameen Sadak Yojana (PMGSY). It was sanctioned after an empowered committee at the Rural Development Ministry went through the proposals sent by the Gujarat government. The committee has insisted that the state government should ensure that citizen information boards are displayed in local language and the board should be placed in a prominent location in the benefitted habitation, for each road works being executed under the programme.

GOVERNMENT MAY RELAX FDI NORMS FOR REAL ESTATE SECTOR TO BOOST FUND FLOWS

GOVERNMENT MAY RELAX FDI NORMS FOR REAL ESTATE SECTOR TO BOOST FUND FLOWS
    
The government is considering sweeping changes in the Foreign Direct Investment (FDI) norms for the real estate sector to boost fund flows to the cash-strapped sector as well as to bolster the battered Indian currency. The urban development ministry has suggested that real estate firms with less than 50 per cent foreign ownership, be exempted from all current restrictions, including the minimum area norms for development of projects. "Foreign investment up to 49 per cent should be free from condition, to attract foreign capital providers which do not have long-term interest in construction assets. This will also enable real estate players to raise foreign capital at competitive rates and reduce dependency on the already strained domestic financial institutions," said an internal document of the ministry. A similar free run has been suggested for foreign investment in urban renewal and slum redevelopment projects, while major relaxations have been proposed for foreign investors picking up over 50 per cent stake. Some of the proposed relaxations for such investments are: reduction in the minimum land parcel size for plotted development to five acres (two hectares) from 10 hectares now and permission to purchase farmland for FDI-funded firms. In case of construction-development projects, the present requirement of a minimum built-up area of 50,000 square meters will come down to 25,000 sq meters. "In case these proposals materialise, it would be a much-needed shot in the arm for a sector that has the potential to create huge employment opportunities," informs Amit Bhagat, MD and CEO, ASK Realty Fund. "This will be a very positive move for attracting foreign capital to the fundstarved sector. It will help in developing requisite infrastructure for retail and commercial establishments, aiding job creation," he added. The urban development ministry's proposals have been sent to the department of industrial policy and promotion in the industry ministry. "The suggestions/ recommendations made should apply to the present and future investments," the ministry has stressed in its proposal. Besides reducing the minimum areas for plotted and construction development, the urban development ministry has suggested that the non-resident investors in a real estate company be freely allowed to sell their shares to another non-resident investor. The proposal, if accepted, would ease the liquidity problem for foreign investors as there is ambiguity at present on transfer of foreign investment made in this sector by one non-resident investor to another nonresident.

WADALA: MUMBAI'S NEXT CBD?

WADALA: MUMBAI'S NEXT CBD?

The MMRDA is looking at new avenues for creating business hubs in Mumbai so as to implement the walk-to-work concept in the city. VIBHA SINGH takes a closer look at Wadala and analyses its potential to become a CBD



    Acity centre is often viewed as the core of a city’s economy, a place where people meet to exchange not only goods and services but also ideas. The traditional role of a city centre has been somewhat eroded in recent years; while cities have seen strong growth in private sector jobs overall, their centres have actually lost out on this business. In current real estate parlance, the Central Business District (CBD) has become a diverse region of the metropolitan area and includes residential, retail, commercial, universities, entertainment, government, financial institutions, medical centres and culture.
    Ravi Ahuja, executive director, Cushman & Wakefield, says, "A city centre is a
part of the CBD only. In recent decades, the combination of gentrification (residential expansion) and development of shopping malls as entertainment centres, have given the CBD a new life. One can now find, in addition to housing, megamalls, theatres, museums and stadiums."
    Earlier, Colaba and Nariman Point were the only city centres in Mumbai and were called as CBDs but gradually the focus shifted to Bandra-Kurla Complex. Dilip Kawathkar, joint-project director, the Mumbai Metropolitan Regional Development Authority (MMRDA), explains, "In reality, there are several business districts in Mumbai which are larger (both, in terms of office space and number of jobs), such as Nariman Point, Ballard Estate, Bandra-
Kurla Complex (BKC) and Andheri. With the two business districts of the city reaching saturation point, the MMRDA has planned to acquire 1.84 crore sq m of land to set up alternative business hubs, build new rental housing projects and other facilities."
    The dwindling land resources of BKC have forced the MMRDA to look at new avenues for creating business hubs in the city and they have found Wadala to be the most potential substitute. This will attract more investors and buyers. "We want to bring the walk-to-work concept in India and Wadala can become an ideal destination for its better implementation, as it will have better connectivity to other areas thanks to the monorail, the Eastern
Freeway and the MTHL Bridge," sources in the MMRDA inform. It would take over five years for Wadala to become a fullfledged commercial hub, they add.
    Kawathkar says, "There are no boundaries to the CBD. The CBD is essentially about perception. It is usually the ‘postcard image’ one has of a particular city. There have been various attempts at delineating the boundaries of the CBD but for the major part, one can visually or instinctively know when the CBD starts and ends, as it is the core and contains a plethora of tall buildings, high density, a lack of parking, transportation nodes, a large number of pedestrians on the street and generally, just a lot of activity during the daytime. The bottom line is that the CBD
is what people think of a city, when they think of its downtown area."
    Four global consultancy firms and eight Indian companies have shown interest in the project to transform Wadala into an international finance and business centre. These include, global giant Sasaki Associates, which helped design the Olympic village in Beijing and New York-based Parsons Brinckerhoof, along with Indian companies such as PG Patki Architects and AECOM India.
    "We have made the master plan which will help us develop the area better. Also, we have taken into consideration factories like RCF and others also; this will give an opportunity for people to live and work here," said a senior MMRDA official. The need for creating alternate growth centres is necessary as commercial centres such as BKC are running out of land. There are only 20 hectares of land left in BKC that can be commercially exploited.
    Planning experts warn that without an early investment in good public transport, the government's vision for the CBD will fail. Abhisheck Lodha, managing director, Lodha Group, states, "We believe that the eastern suburb is the New Cuffe Parade and now, the MMRDA plans to transform Wadala into Mumbai's newest business hub."
    According to Jitendra Gupta, civic activist, "The answer to increasing economic activity in city centres however, must not be to limit out-of-town growth - such an approach is likely to limit overall job creation in any city. Instead, changes should be made to city centres to make them a more profitable place for businesses to locate. Lack of parking space is a common gripe but public transport, road access and quality of office space, are all factors that must be improved to make city centres a popular choice for today's businesses."

QUICK
BYTES
THE WALK-TOWORK CONCEPT IS MUCH NEEDED IN INDIA AND WADALA CAN BECOME AN IDEAL DESTINATION FOR ITS BETTER IMPLEMENTATION, AS IT WILL HAVE BETTER CONNECTIVITY TO OTHER PLACES DUE TO THE MONORAIL, THE EASTERN FREEWAY AND THE MTHL BRIDGE.
WITH THE TWO BUSINESS DISTRICTS OF THE CITY REACHING SATURATION POINT, THE MMRDA HAS PLANNED TO ACQUIRE 1.84 CRORE SQ M OF LAND TO SET UP ALTERNATIVE BUSINESS HUBS, BUILD NEW RENTAL HOUSING PROJECTS AND OTHER FACILITIES.



THE RECENTLY INAUGURATED EASTERN FREEWAY FROM ORANGE GATE TO BHAKTI PARK IN WADALA IS EXPECTED TO BOOST CONNECTIVITY TO THE AREA

Real Estate Investment Trust (REIT) has come calling on the Indian realty segment

REIT: SEBI'S ENDEAVOUR TO INFUSE LIQUIDITY INTO THE SECTOR

SEBI's recent move to revive the popular real estate funding model has been hailed by many. However, its viability needs to be examined, says RAVI SINHA



    The Real Estate Investment Trust (REIT) has come calling on the Indian realty segment for quite some time. This globally successful model of real estate funding that gives retail investors an avenue to invest in the sector, without buying physical properties, was put on the back-burner last time with the premise that Indian real estate lacks research-based structured depth and maturity. Much water has flown under the bridge since then and while it is debatable how much the sector has gained in terms of structured research, it seems that desperate times have highlighted REIT as a desperate solution, which all stakeholders, within the built environment, are considering a saviour.
    Stock market regulator, Securities and Exchange Board of India (SEBI), is all set to resurrect the proposed REIT, notwithstanding its two earlier unsuccessful attempts. This time, it will be unveiled on the Alternative Investment Fund (AIF) platform. The key for the revival of REIT is to curb the 'mad rush' by Indian investors, to buy gold and replicate the success stories in real estate listings in Singapore. Financial services company, Macquarie Group, believes that unprecedented weakness in the rupee and the government's attempt to attract foreign capital, are the main reasons for SEBI to once again consider REIT. It could also provide a new lease of life to the cash-strapped commercial real estate segment.
    SEBI plans to create a new category on the AIF platform, enabling investors to subscribe to units of REIT. These units, very much like those of mutual funds, will be listed/unlisted and will invest in rent-income-based real estate assets. Importantly, the regulator is proposing that 90 per cent of the income from REITs, be distributed as dividends every year, which is in line with the international practice. The REIT is a single company or a group that owns and manages real estate properties on behalf of investors, much like the concept of shareholding in a company. The AIF is established or incorporated in India in the form of a trust or a company that collects funds from investors. Sources within SEBI maintain that the features of REIT are being fine-tuned. The con
sensus is slowly emerging as to who can invest in these investment vehicles and the minimum subscription criterion is being set. The regulator plans to roll out the regime before the 2014 general elections. The REIT model has already been successful in many countries such as Singapore, Japan, Australia, the UK and the US. However, it will need a number of approvals, including one from the ministry of finance and the department of industrial policy and promotion. To begin with, investments in REIT will be restricted to institutions and High Networth Individuals. They may be thrown open to retail investors after three years.
    SEBI had formulated the draft regulations for the REIT regime in 2007 but it was never implemented. Subsequently, the regulator decided to roll it out on the mutual funds platform but that too did not take off, owing to a different set of requirements for retail investors. The realty sector has welcomed SEBI's recent move. Ramesh Sanka, group CFO, DLF, says that whether it is the Asia Pacific Real Estate Association (APREA), other people or big fund investors, they are already in dialogue with the government at both, the finance ministry level and at the SEBI level. Both the bodies are showing positive interest in this concept because
they find that this is the only way two things can happen. One, a small investor in the market can participate in real estate transactions. Second, this is the only way that foreign investors or FDI can be revived in this sector. "If we were to compare with Singapore’s rate model, income tax is not applicable there in properties but here, we will be subjected to income tax, whether it is IT SEZ or other commercial property. The second most important thing that we have to understand is that when you start distributing the extra money that you have, dividend distribution tax comes into place. REIT is one model which assumes that this dividend distribution will not be taxed, either in the company's hands or in the recipient hands. I think that is where the government needs to focus. Everybody is requesting the government to find out a mechanism where both these can be exempted," adds Sanka.
    Lalit Kumar Jain, chairman of developers' body CREDAI, hopes that in light of the country's rupee v/s dollar crisis, a workable REIT structure will be put in place at the earliest, whereby, the sector can invite foreign investment into REITs. "We in India, don’t focus on lessons learnt globally. This results in the failure of instruments like REITs. Every industry has its own identical
needs and we need to learn a lot to devise a practical form of mutual funds in real estate. Engaging the industry is also very important in the decision making process," opines Jain.
    Diipesh Bhagtani, executive director of Jaycee Homes, feels that in its previous attempt in 2008, SEBI had to postpone its initiative because of the global economic meltdown. This time around, SEBI is attempting to make the investment more viable for the investors. However, the concern on the regulations, transparency, feasibility, etc., makes the decision taking process complex for the regulator. "It is a muchneeded step for growth in the real estate industry. It is expected to bring transparency on the financial side of the sector. REIT in India's structure, is similar to what exists in the US. SEBI had initiated the first discussion in 2006-07; however, owing to a different set of requirements for retail investors, it had to hold back its plans. The new proposed category is different from what was previously planned. According to the new draft, investors will be able to invest directly in real estate assets through REIT," informs Bhagtani.
    Maintaining that this is a good initiative by SEBI, analysts in the financial market say that the earlier guidelines were unworkable and hence, no effective development of REIT happened in India over the last few years. According to them, realistic and practical regulations can go a long way in rejuvenating the REIT market in India. After all, mutual funds invest in relatively liquid assets compared to REIT. By definition, REIT invests in real estate and is for a much longer duration.
    Sudip Bandyopadhyay, MD and CEO, Destimoney, believes that there were two sets of guidelines issued by the regulator, covering REIT. SEBI issued the draft REIT regulations in 2008. Another set of guidelines for real estate mutual funds were issued in 2008. The confusion arises from the fact that both these guidelines are supposed to regulate a similar product. In the absence of REIT guidelines, some real estate developers have already listed their REIT overseas. The clarity pertaining to double taxation is also required. "We expect the new guidelines to take care of all these
issues and create an enabling environment. Uncertainties in the real estate business, have also hindered the creation of REITs. An enabling environment will propel the real estate market to adopt global best practices and clean up its act. In light of the dwindling interest of investors to put money in Indian real estate, the existence of the REIT structure is extremely important. Institutional finance to this sector has witnessed a remarkable slowdown due to increased risk perception. Similarly, foreign investment has also witnessed a downtrend. The IPO market has also dried up for real estate companies," adds Bandyopadhyay. There is no denying that there is huge unmet demand for housing in India. This, combined with other factors, must have galvanised SEBI into action. Clear, transparent and market friendly regulations can rejuvenate this sector and solve the liquidity crisis. Would the roads be smooth ahead? Experience suggests otherwise, as even Real Estate Mutual Funds (REMFs) - India's tentative answer to the international REIT model, adapted to the existing Indian mutual funds platform, failed to offer the right answer. Post SEBI's move, while everybody is working on entry and creating assets, the important question of who will buy these assets to provide an exit to the developers/investors, needs to be addressed. Shobhit Agarwal, managing director-capital markets, Jones Lang LaSalle India, elaborates, "The leveraging allowed in the case of Indian REIT is the lowest (at 20 per cent of the value) compared to 35 per cent in case of Malaysia, Hong Kong, Singapore and Taiwan and 200 per cent in case of Korea. This could result in a lower yield and because it is not really leveraged, the risk factor is also higher. Such risk, coupled with a lack in transparency in the system and a high amount of friction in approval mechanisms, creates uncertainty in yields. This uncertainty of the quantum and time of returns, is the reason why most foreign investors are shying away from the Indian real estate sector currently. How far will REIT change this? That only time will answer.
    (The writer is CEO, Track2Realty)

QUICK
BYTE
    
REIT IS A GLOBALLY SUCCESSFUL MODEL OF REAL ESTATE FUNDING THAT GIVES RETAIL INVESTORS AN AVENUE TO INVEST IN THE SECTOR WITHOUT BUYING PHYSICAL PROPERTIES. IT WAS PUT ON THE BACK BURNER IN 2008 WITH THE PREMISE THAT INDIAN REAL ESTATE LACKS RESEARCHBASED STRUCTURED DEPTH AND MATURITY.

LOOKING FOR A 2-BHK? THANE MAY FIT THE BILL


LOOKING FOR A 2-BHK? THANE MAY FIT THE BILL

This area is a practical option for many buyers looking for 2-BHK homes and offers quite a few choices



    As saturation in residential and commercial development in Mumbai resulted in demand shifting towards the city's suburbs, Thane developed. Since its inception, Thane has come a long way and today, it boasts of homes that suit the needs of all sections of society.
    Several factors have come together to make Thane one of the most preferred residential locations near Mumbai today. Firstly, the suburb offers exceptional connectivity to Mumbai via three major highways, namely, NH3, NH4 and the Eastern Express Highway. "Further, Thane has large layouts and open spaces and is one of the fastest growing areas in the Mumbai Metropolitan Region (MMR)," explains Abhishek Kapoor, vice-president, Rustomjee. According to him, most people nowadays prefer to live in large integrated townships, with everything - from work to school, located a stone’s throw away.
    As Thane is considered largely a middle-class destination, 2-BHK units have emerged as the most supplied
unit size in the suburb. As per MagicBricks.com data, more than 45 per cent of the total supply in Thane was for 2-BHK apartments in the April-June 2013 quarter. The price range of these units of course, varies in different localities.
    In the last three months, some of the localities that have recorded high supply of 2-BHK units are Ghodbunder road, Majiwada and Manpada. While Ghodbunder road and Majiwada have become comparatively expensive to fit the affordable tag, Dombivli still offers properties that are reasonably priced. Among these areas, the most highly priced localities to own a 2-BHK would be Majiwada. It contributes largely to the fact that Thane has no longer remained in the affordable range. As per the data with MagicBricks.com, one has to shell out anywhere between Rs 1-1.4 crores to own a 2-BHK in Majiwada. A 2-BHK unit worth less than Rs 1 crore may also be available; however, it forms a small chunk of the total supply.
    If you have a budget of just up to Rs 1 crore, Manpada
may also be considered. However, if Rs 1 crore is still a distant dream for you, don't panic. Ghodbunder road can still fulfil your wish to own a 2-BHK home within a budget of Rs 60-80 lakhs. "Four-five years ago, Ghodbunder road was categorised as a green forest area. However, today most of the area has been cleared and deployed as a residential and commercial zone," says Sanjay Nagaonkar, owner, Ranuja Properties.
    One of the localities beyond Thane that still justifies the affordable tag is Dombivli. One can purchase a 2-BHK apartment within the price band of Rs 40-60 lakhs here. Within this budget, one can enjoy a riverside promenade, a riverside café, walkways and plazas, meditation areas, fragrant gardens, etc. As the lower prices are due to the lower land values, developers generally do not shy away from offering world-class amenities. Reinforcing this fact, Devang Trivedi, director, Progressive Group, opines, "Most projects that offer facilities like lift, power backup and security, are towards the periphery of
Kalyan and Dombivli."
    For the mid-range home buyer, a 2-BHK is the most ideal configuration. For them Thane presents the best bet around Mumbai. Om Ahuja, CEO-residential services, Jones Lang LaSalle India, informs, "For the mid-range home buyers, there aren't many affordable options within the city limits. Though rates of residential property in Thane have gone up in the last year by 10-15 per cent, it is still within the reach of a common man."
    Apart from enhanced connectivity to Mumbai, the residential and commercial development that has encompassed Thane, makes it an ideal location to reside in. "Thane is riding the wave of residential and commercial success. New development has been planned and the existing development has been absorbed," adds Ahuja. He concludes, "Living in Thane makes a lot of practical sense. The four railway stations in the vicinity - Thane, Kalwa, Mumbra and Diva, handle a large number of commuters who travel to work every day."
    MagicBricks.com Bureau 
 
QUICK BYTE THANE HAS LARGE LAYOUTS AND OPEN SPACES AND IT IS ONE OF THE FASTEST GROWING AREAS IN THE MMR. LIVING IN THANE MAKES A LOT OF PRACTICAL SENSE. THE FOUR RAILWAY STATIONS IN THE VICINITY - THANE, KALWA, MUMBRA AND DIVA - HANDLE A LARGE NUMBER OF COMMUTERS WHO TRAVEL TO WORK EVERY DAY. 


MAJIWADA, GHODBUNDER AND POKHRAN ROAD TOP SUPPLY IN RS 1-1.6 CRORE RANGE

This stretch offers homes for buyers who live not only in Thane but also in far-off suburbs of Borivali, Kandivali and Malad



    If statistics with MagicBricks.com are any indications of the supply available in the market, then be assured that Rs 1-1.6 crores is what you require to make your home search in Thane, an easy one. This is due to the fact that this category is the most supplied in the city and hence, easiest to find. Data with MagicBricks.com indicated that 21 per cent of the total supply in Thane, was priced between Rs 1-1.6 crores.
    If you are fortunate enough to have a budget of Rs 1-1.6 crores, there are certain localities you may target for your home search. The data indicates that Ghodbunder Road, Majiwada and Pokhran Road 2, have the highest supply of properties worth between Rs 1-1.6 crores.
    Even though all three localities are at different stages of development with respect to their realty markets, they are not very far from each other and the supply scenario in these markets depict a common thread. Ghodbunder Road gives way to Pokhran Road on its right, just before it merges with the Eastern Express Highway. Majiwada is located at the junction of these two roads. 

GHODBUNDER ROAD
    
Ghodbunder Road, one of the major roads cutting through Thane, is witnessing rapid real estate development. This stretch, measuring roughly 20 kms, is dotted with residential, retail, commercial as well as institutional projects. Several renowned developers have set base in this highly dynamic real estate stretch. These include Lodha Group, Harmony Lifestyle Group, Dosti Realty Limited and Vijay Group, among others. Within the above mentioned budget range of Rs 1-1.6 crores, if you are looking to purchase a 3-BHK home, then Ghodbunder Road is the ideal option. As per data with MagicBricks.com, there is
maximum availability of 3-BHK units within a budget of Rs 1-1.6 crores. This is closely followed by 2-BHK units. Developers who are offering these configurations within the said budget include Haware Engineers & Builders Private Limited and Lodha Group. 

MAJIWADA AND POKHRAN ROAD 2 Majiwada is increasingly becoming a preferred residential location for those working in locations such as Borivali, Kandivali and Malad. If you do not wish to go too far from these areas, you can opt for Majiwada over Ghodbunder Road. However, within a budget of Rs 1-1.6 crores, the most supplied unit size in Majiwada is a 2-BHK. In fact, 2-BHK units are the most supplied category in Majiwada, with more than 60 per cent of the total supply concentrated in this category. Several developers such as Sheth Developers, Mahakali Developers and Rustomjee Developers, have their presence in Majiwada. Another option for those looking for housing near localities such as Borivali and Kandivali within the budget of Rs 1-1.6 crores, can be Pokhran Road 2. Similar to Majiwada, supply in Pokhran Road 2 is also largely limited to 2-BHK units with nearly 60 per cent availability.
    MagicBricks.com Bureau

Mangal Parv brings cash back and exciting prizes

Mangal Parv brings cash back and exciting prizes

Times Mangal Parv Home Fest, Mumbai's most sought-after home buying festival is back. There is no better platform to help buyers zero in on their dream home, says ANURADHA RAMAMIRTHAM



    The festive season is here again! It is that time of the year when home buyers
look forward to investing in their dream homes, keeping in mind traditional sentiments. With Ramzan Eid flagging the start of festivities, followed by Pateti, Raksha Bandhan and more to come, including Janmashtami, Ganesh Chaturthi, Onam, Dusshera and Diwali in quick succession, this year's festivities conclude with Christmas and New Year celebrations. What's noteworthy is that these festivals, are spread across religions, providing an optimistic and auspicious opportunity for the real estate industry. During this period, many developers launch new
projects and have special offers and promotions that aim at exceeding consumer expectations.

    With changing aspirations, home buyers are looking at a holistic living experience.
There is a surge in demand for projects with amenities and schools, hospitals, shopping complexes and offices nearby. Another important criterion for end-users is to invest in a reputed developer who is known for ethical dealings and who provides excellent after sales service. With Mumbai's most sought-after home buying festival, the Times Mangal Parv Home Fest back, there is no better platform for buyers to buy their dream home.
    Like every year, Times Mangal Parv Home Fest is bigger, has the presence of prominent developers and projects and has loads to offer to property buyers. The most awaited property festival began on August 23, 2013 and will culminate on October 6, 2013. As

part of this festival, an array of prominent developers will display their projects and offerings in the choicest of locations including south Mumbai, the western suburbs, central suburbs, Navi Mumbai and much more, through the pages of the Times of India and the Times Property supplements.
    Interested buyers and read
ers can get access to more information with respect to projects on display and best deals of the Times Mangal Parv Home Fest on Times Property's Facebook page on https://www.facebook.com/TimesProperty Mumbai. They can also follow Times Property's Twitter handle #timesprop, which will tweet updated information about the housing festival, including the website and contact details.
    When it comes to doing something different, Times Mangal Parv Home Fest surpasses all expectations each year, with its magnitude of prizes and this year is no different. The theme of this year's Times Mangal Parv Home Fest is cash back. Home buyers stand to win Rs 50 lakhs, Rs 20 lakhs and Rs 10 lakhs cash back on booking a property with any of the participating developers as part of the first, second and third prizes. Additionally, there
are weekly prizes that include colour televisions, iPads and much more. Anyone who books a flat from the list of participating developers, this Mangal Parv, can avail a beautiful silver coin. Investing in a property is a major financial and emotional decision but the way the city is developing and the rate at which realty prices are appreciating, now is the right time to invest. With Mumbai's leading developers coming together and showcasing their properties under one umbrella through the Times Mangal Parv Home fest, interested buyers can get access to information with ease, eliminating the trouble of traveling far and wide.
SOME OF THE PARTICIPATING DEVELOPERS INCLUDE:

• EKTA WORLD PVT LTD


• GUNDECHA


• HUBTOWN LTD


• INDIABULLS REAL ESTATE


• IPSIT GROUP


• MOHAN GROUP


• REGENCY GROUP


• RUSTOMJEE


• SUNTECK REALTY LTD


• THE WADHWA GROUP


• TRIDHAATU REALTY AND INFRA PVT LTD

QUICK
BYTES
THE THEME OF THIS YEAR'S TIMES MANGAL PARV HOME FEST IS CASH BACK. HOME BUYERS STAND TO WIN RS 50 LAKHS, RS 20 LAKHS AND RS 10 LAKHS CASH BACK ON BOOKING A PROPERTY WITH ANY OF THE PARTICIPATING DEVELOPERS AS PART OF THE FIRST, SECOND AND THIRD PRIZES.
ADDITIONALLY, THERE ARE WEEKLY PRIZES THAT INCLUDE COLOUR TELEVISIONS, IPADS AND MUCH MORE.

Friday, August 23, 2013

NISSAN BRINGS IN THE TERRANO

NISSAN BRINGS IN THE TERRANO

Nissan took the wraps of its latest model, the Terrano - a smart, rugged SUV that is based on the much loved Renault Duster. Pre-sales bookings for the Terrano will begin from 1st September, 2013


Nissan India President Kenichiro Yomura says the SUV segment in India will grow over 30 percent by 2016. The addition of the Terrano can only bring good fortune to a company which has a long and successful history of SUV in many countries such as Patron in Gulf countries and Pathfinder in USA.
    The Japanese auto maker plans to extend this hard earned reputation by offering its consumers the 4th generation Terrano, that has been finally unveiled in India. A lot of time was spent elaborating on the design cues that are so unique to the Nissan Terrarno. Nissan's fourth vehicle to be produced locally in their Oragadam Plant alongside the Micra, Sunny and Evalia has a bold and distinctive styling has been developed specifically for the Indian market keeping the lineage of Nissan's advantage of a large assortment of SUV's.
    The Terrano, which has
been praised highly by customers for its comfort, styling and performance since the nameplate was first introduced in 1986 is now in its fourth generation and will play a key role in boosting Nissan's sales volume in India and marks the company's entry into the expanding compact SUV segment.
    Exterior highlights on the new Terrano include sharp headlamps with a four pod design, an angled strut grille, coloured roof rails and silver-finished skid plates. But this entry-level SUV also
promises to pamper its occupants with its wellappointed, premium interior. The two-tone dash features chrome surrounds for the AC vents and silver-finished accents around the glossy, piano black centre console.
    Pre-bookings for the Terrano will commence from 1st September at select Nissan dealerships throughout India. The final price is still being worked out, but the company has made it clear that it will be launched at a sub Rs 10 lakh price point.

Permium feeling interiors in the Terrano also do enough of a job to set themselves apart from those in the Renault Duster.


Who says luxury and efficiency don't go hand-in-hand? Certainly not the guys at Toyota, who've just brought their latest baby, the Camry Hybrid to India

HYBRID THEORY

Who says luxury and efficiency don't go hand-in-hand? Certainly not the guys at Toyota, who've just brought their latest baby, the Camry Hybrid to India


Mention the word 'Hybrid' and the car
maker that comes to
mind is none other than Toyota. The Japanese auto giant has pretty much become synonymous with hybrid electric cars thanks to the success of the Prius. But now Toyota has taken the game even further and dropped in a hybrid powertrain in the recently updated Camry. Why the Camry you ask? For starters, the new Camry comes across as a fantastic car offering loads of technology, comfort and reliability and checks most boxes for anyone thinking about a large sedan and now with a hybrid system it's just as green and efficient.
    There isn't much on the outside to set this hybrid Camry apart from its petrol powered sibling, barring the
slightly redesigned chrome grille and the 10 spoke 17-inch alloy wheels. The Camry received a major design update last year and we can pretty much vouch for the fact that it is one of the most handsome sedans in its class. The main difference between the two cars, of course, lies under the hood. The 2.5-litre 2ARFXE four-cylinder petrol engine featuring variable valve timing (VVT-i) remains pretty much unchanged, but as part of the company's Hybrid Synergy drive system, it also receives a 650-volt synchronous electric motor which has 143PS of power and 270Nm of torque compared to the petrol engine's 160PS and 213Nm respectively.
    Opening the wide doors reveals the familiar cavernous insides, which not
only look good but feel good as well. The dash sees a change with the inclusion of the Optitron Combimeter which gives out a lot more information than your average speedo-console. A fantastic feature that makes the Camry stand apart is that the rear seats come with power recline as well and this apart from the driver and the co-passenger seats being 8-way power adjustable. This Camry definitely knows how to pamper.
    We have already seen a couple of hybrids in India already, such as Toyota's own Prius as well as the Honda Civic Hybrid. But traditionally, these types of vehicles haven't seen too much success in our market. So what makes the Toyota Camry Hybrid so important? Well, while there might not be anything groundbreaking about this car, the reason why Indian car buyers need to sit up and take notice is that this will become the first hybrid car to be assembled in the country, showing just how seriously Toyota is considering this type of car for India. And the real beauty of this product is that it brings forth green technologies without really losing the essence of what the Camry is all about - luxury. This luxury combined with a magical blend of power and efficiency, something that our own bossman, Adil, can vouch for after his recent drive, really sets the Camry Hybrid apart. Keep watching this space for a comprehensive drive report coming up soon.
S P E C IF IC ATI O N S TOYOTA CAMRY HYBRID ENGINE: 2,494cc, 4-cyl, petrol
POWER: 160PS @ 5,700rpm
TORQUE: 213Nm @ 4,500rpm
TRANSMISSION: E-CVT
ELECTRIC MOTOR 650V, 105kW, 270Nm, synchronous
BATTERIES 244.8V, 6.5Ah, NiMH
HYBRID OUTPUT: 205PS
PRICE: TBA

Apart from the Hybrid exclusive Optitron Combimeter, there aren’t too many differences in the interiors of this and the petrol version. But who’s really complaining?


Thursday, August 22, 2013

Life insurers and agents hide the truth: Harvard study

Life insurers and agents hide the truth: Harvard study
 
A Harvard Business School study on Indian life insurance market suggests that hiding information may be an important part of life insurance agents' sales strategy, which is actively encouraged by insurers

A Harvard Business School study found a range of wildly incorrect statements made by agents on term plans, such as: “You want term: Are you planning to killing yourself?”, “Term insurance is not for women”, “Term insurance is for government employees only.” One agent even proposed a policy that he described as term insurance, which was, in fact, a whole
life plan.
 
The study titled “Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market” by Santosh Anagol, Shawn Cole and Shayak Sarkar, portrays life insurance companies and their agents working in tandem to keep the consumer away from the right insurance product – term plan – by such deliberately misleading statements. The researchers sent trained auditors into the field posing as customers seeking insurance and then analyzed the advice they received.  The auditors’ meetings with agents revolved around life insurance, specifically two types of policies: term and whole life.
 
In another experiment, the study found that requiring disclosure of commissions on one particular product led to that product being recommended less. This result is interesting since it suggests that hiding information may be an important part of life insurance agents' sales strategy and that the disclosure requirements can change the optimal strategy of agents. In this case, the disclosure requirement on one product pushes agents to recommend more opaque products. The results suggest that the disclosure requirements for financial products need to be consistent across the menu of substitutable products.
 
According to the study, “Life insurance companies may not have an incentive to educate consumers about how term life plus savings is better than whole life insurance as it may cause consumers to save with banks as compared to saving with life insurance firms. This loss in savings business for life insurers may outweigh the benefits of higher term life insurance sales.”
 
The study says, “If there is a true demand for investment-linked products, it is surprising that an insurance company has not won a substantial amount of business by offering a better whole life insurance product (i.e. by paying compounded bonuses, charging lower premiums, or both). One explanation for this scenario may be the presence of stiff competition for targeting the same market, irrespective of the quality of the product. In this case, the products that have the highest sales incentives will sell and any particular insurance firm will have an incentive to pay the highest commissions on the highest profit products.” 
 
The findings of the study are consistent with anecdotal evidence from discussions with their auditing team: agents typically start the life insurance conversation by estimating how much the individual can afford to put into life insurance per month, rather than determining how much risk coverage the customer needs.
 
The study concludes that whole life insurance is economically inferior to a combination of investing in savings accounts and purchasing term insurance. Despite the large economic losses associated with investing in whole insurance, the study finds that life insurance agents overwhelmingly encourage the purchase of whole life insurance.
 
Approximately 20% of household savings in India have invested in whole life insurance plans according to IRDA. Agents’ behaviour is extremely important in this market, as approximately 90% of insurance purchasers buy through agents. Source mlf
 

Monday, August 19, 2013

Taxing times ahead for super-rich

Taxing times ahead for super-rich


NEW DELHI: The government is gearing up for an overhaul of India’s tax regime by widening the “super-rich” net, rejiging existing slabs and introducing wealth tax on expensive watches, paintings and other works of art.
An additional tax of 10% is also proposed if annual earnings from dividends on mutual funds and equities exceed Rs1 crore. These are among a slew of proposals included in the new direct taxes code (DTC) bill that the government, struggling with an ever widening current account deficit, plans to introduce in Parliament’s ongoing monsoon session.
“To maintain overall progressivity in levy of income tax, a fourth income tax slab is also proposed,” a senior officer, who did not wish to be identified told HT. At present, there are three tax slabs. Those with an income of less than Rs2 lakh a year are exempt from paying taxes. Those earning between Rs2 lakh and R5 lakh annually are taxed at 10%, those between Rs5 lakh and R10 lakh at 20% while anybody earning more than Rs10 lakh pays a tax of 30%.
The bill, which has been in the works for many years, also proposes to rearrange these slabs, sources said.
In addition, in this year’s budget finance minister P Chidambaram, for the first time, introduced a “super-rich tax”. “Relatively prosperous” persons with a taxable income of more than Rs1 crore — and there are supposedly only 42,800 of them in India — now pay an additional surcharge of 10%.
The government plans to introduce a higher tax slab for those with an annual income above a certain threshold, sources said. Those with an annual income of R50 lakh may be included in the “super-rich” club.
The scope of assets to be included in “net wealth” will be widened to include watches that cost more than Rs50,000, archaeological collections -– statues, coins or other artefacts-- paintings, sculptures or any other work of art and bank deposits outside India. Cash-inhand limit, which is Rs50,000, will be raised to more than Rs2 lakh to be part of “net wealth”.
Wealth tax at the rate of 0.5% if the total value of such assets is between Rs5-20 crore and 1% if it is higher than Rs20 crore — up from the existing limit of Rs30 lakh at the rate of 1% -- is being planned.
The bill also redefines income from property which could make letting out houses for commercial purposes more taxing.

Sunday, August 18, 2013

how the use of wallpapers can prove to be a blessing this monsoon

PROTECT YOUR WALLS WITH TRENDY WALLPAPERS THIS MONSOON

explains how the use of wallpapers can prove to be a blessing this monsoon



    Mumbai sees a lot of downpour during this time of the year. Often, we see the walls of our homes get wet due to the seepage of water, which in turn, leads to dampness and spoils the overall look of the room. To avoid the above from ruining your walls, wallpapers can be a good alternative. Nirav Meswani, director, Surprise Home Linen, says, "There are many vinylbased wallpapers available in the market that are very easy to maintain in the monsoons because they are wipeable with a wet cloth and are less prone to fun
gal growth." 
    Wallpapers prove to be beneficial, as they require very little maintenance. Once they are pasted on the wall, just wipe them with a wet cloth on a regular basis and they will look as good as new. However, one thing must be kept in mind, as Meswani suggests, "If there is leakage or seepage in the wall from the inside, then the wallpaper would get affected and would spoil the look of the room as well." 
    Apart from being easy to maintain, wallpapers are also economical, have a long life, are washable, are available in eco-friendly material and are hygienic compared to other wall 
paints that contain VOC. 
    Today, wallpapers are available in a host of colours, patterns and textures. Meswani points out a few new trends, colours and patterns in wallpapers this monsoon. "This season, a lot of textures are being used for smaller walls. Especially metallic colours make a good statement. In motifs - ethnic motifs like ikat and tribal motifs have made a huge comeback; these make a very impressionable look." 
    “Colours such as green, yellow and earthen shades, would look ideal during the downpour, as they also pro
vide a warm and cosy feeling when it rains outside the house,” opines Rashmi Shah, a home maker. 
    While the pattern and choice of wallpapers is a matter of personal choice, you must also ensure that the selected pattern blends well with the décor and the size of the room. 
    The following are some tips on choosing the right 
wallpaper for your room: 

• Vertical stripes or patterns make the ceiling appear higher. 

• Horizontal stripes or patterns give a wide look to the room and bring the ceilings down. 

• Large patterns should be avoided if the room is small, as they tend to make the room look closed. Instead, opt for small patterns that make the room look bigger. 

• Always opt for pastel/earthy shades and avoid dark colours, as they make the room look smaller. A wallpaper with a light background makes a room look larger.

Saturday, August 17, 2013

You can still file your I-T returns

You can still file your I-T returns


Only those who have paid all taxes and do not have any refund claim can file their I-T returns by 31 March 2014

The Income Tax (I-T) department has urged all those taxpayers who have not filed their I-Tax returns, even by the extended deadline of 5 August 2013, to file their returns at the earliest to keep away unavoidable difficulties. However, the option to file one's I-T return before 31 March 2014 is available only for those who had paid all their taxes and there are no refund claims.
 
According to a release issued by Press Information Bureau (PIB), if the returns are not filed by 31 March 2014, there will be a penalty of Rs5,000 levied on the taxpayer. Those with tax dues will have to pay late payment fee leviable for every month of delay since April 2013, the release said.
 
While I-Tax department gives taxpayers certain grace period to file their returns, there are certain disadvantages associated with late filing of I-T returns. Those who file their returns late, cannot modify their returns if there are any mistakes. They also cannot carry forward any short term and long-term losses. 
 
All those with total income of Rs5 lakh and above and all those having foreign assets have to mandatorily file their IT returns online. Those with total income less than Rs5 lakh can file their returns off-line. So far, more than 1.23 crore taxpayers filed their returns online this year.
 
According to the release, a person defaulting in filing returns of income could be liable for prosecution under Section 276CC of the Income Tax Act, 1961. Conviction may result in rigorous imprisonment for a term not less than six months but which may extend to seven years and a fine, if the tax liability which has been evaded exceeds Rs25 lakhs.
 
Recently, the additional chief metropolitan magistrate in New Delhi sentenced a taxpayer to six months imprisonment in one assessment year and one year imprisonment in subsequent assessment year for repeating the offence of not filing return of income.  Source -mlf

Banks unlikely to hike rates on NRE deposits for now

Banks unlikely to hike rates on NRE deposits for now
Central bank says that credit demand still sluggish, pressure on margins

The Reserve Bank of India’s (RBI) move to deregulate interest rates on non-resident (external) rupee (NRE) deposits might not persuade banks in increasing non-resident deposit rates now.

Bankers believe offering higher rates on these deposits might not increase fund inflows from non-resident Indians (NRIs) but will probably stress their margins further.

On Wednesday, RBI allowed banks to decide the interest they pay on non-resident deposits by removing the cap. Earlier, banks were not permitted to offer NRIs more interest than they pay to Indian depositors.

Bankers said lack of opportunity to deploy their resources is the primary reason why lenders are not in a hurry to increase rates.

“As of today, there is not much of credit demand. Our liquidity position is also relatively comfortable. So, we do not have any plans to increase interest rates on NRE deposits. Also, there are different avenues of raising foreign currencies. So, at this moment, we are not looking at increasing our FCNR (B) [foreign currency non-resident] deposit rates," S S Mundra, chairman and managing director of Bank of Baroda, said.

Loan demand has remained muted in the current uncertain macro-economic environment. Credit growth slowed to 15 per cent on a year-on-year basis till July 26 from 17.3 per cent a year earlier.

RBI has also exempted banks from maintaining CRR (cash reserve ratio) and SLR (statutory liquidity ratio) balances on incremental NRE deposits with a maturity of three years and above to encourage lenders in mobilising these deposits more aggressively.

Besides deregulating NRE deposit rates, the central bank has also increased the ceiling on FCNR (B) rates by 100 basis points to Libor plus 400 basis points for three to five years maturity. Both measures will remain effective till November 30. But most bankers said they are not keen to raise non-resident deposit rates now.

“We are presently maintaining a status quo on both NRE and FCNR (B) deposit rates. There is no indication as of now that if we hike these rates, there will a significant increase in flow of funds. We will keep a watch on the market," Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said.

The reluctance in increasing rates is also because banks are experiencing a pressure on their margins on account of rise in cost of funds. The central bank's move to increase the marginal standing facility rate by 200 basis points to 10.25 per cent along with limiting banks' borrowing capacity from the liquidity adjustment facility (LAF) has increased the short term rates.

On Wednesday, banks borrowed over Rs 32,000 crore from the MSF facility, which they would have availed at a lower rate from the LAF if there was no cap.

In addition, increase in non-performing assets has put pressure on banks' profitability in terms of higher provisioning and loss of interest income.

Bankers also said that there were other avenues of raising foreign currency funds that work out cheaper than FCNR (B) deposits. "We can always go for a MTN (medium term note) programme through one of our foreign branches if we want. In MTN, we can raise the money in tranches. Also we are sure about the cost, and in the current scenario it will work out cheaper than FCNR (B) deposits," said a banker.  Source – Business Standard