SACHIN BHATIA

Report 2009: Digital Marketing

2010-02-25T00:25:00.001+05:30

Future of Marketing

Webchutney Digital Media Outlook Report 2009

View more presentations from sidharthrao.

Sachin Tendulkar : We are Proud of you...

2010-02-24T23:02:00.002+05:30

Sachin Tendulkar, realy deserve this Double Century . 200 not out!!! you are the only batsman who could have done this . Great Work !!!! Hats Off to you ..

World record: Sachin Tendulkar became the first player to score a double-century in the history of one-day international cricket.

Save them , They also have right to live

2010-02-04T00:40:00.002+05:30

Save them Please,

Save our tigers in your own small way. Speak up about the cause, write or blog about our tigers, even staying up-to-date with tiger facts like knowledge of tigersanctuaries, their population, news updates, etc. helps. You can also donate money toNGOs working for the cause, like WWF-India. Every little bit helps…

Common Wealth Games 2010, DELHI

2010-01-13T11:08:00.007+05:30

We have been reading and hearing quite about the upcoming Common Wealth Games or you can say more about how Delhi is lagging behind &t he games were at risk of falling behind schedule

What impression will the world take of India when they'll see the preparation here?
The lack of preparations, damaged roads, traffic, blah blah blah..problems are infinite.
People are blaming government...ministers are blaming poor janta, asking them to behave.. Everyone is busy making allegations on one another.

But We will ask you something are we really poor and at pity of our ministers? Can’t we take a stand on our own? Most people will say we want to, but “Ek akele aadmi se kya hoga?".

We need true leaders to sail us through the odds.. but from where does a leader come? It is us who make a leader of aam admi.

The leaders come from the mob, we vote and make leaders.. are we still poor? Has anyone asked us not to vote? After days and nights of hard work who wants to leave an opportunity to relax at home and enjoy official holiday. Why waste your day standing in lines to vote for leaders who will anyways do no good to us.

No body bothers but Does anyone realise that because of this attitude , such corrupt leaders come to power. Most of ministers are corrupt and Illiterate, they become MLA or minister just to earn for themself and do nothing for the Nation. Its only before the Elections that we come to know about their existence and rest of the time they are under hibernation.

Leave ministers alone, are we doing any good to our Nation? Are we following rules?

It is us who give a 100 Rs note to a traffic havaldar when he stops our car, jumping red lights is such a common sight.

Forget people..even police walah’s jump red lights.. and What about zebra crossing.. we all know it is for crossing roads...but do we actually use them??

Are they really visible during traffic hours?

How many of us stop our car behind stop line?

Is it there just for decoration?

We stop our car wherever we like... "traffic hota hai to ho jaye road to humare papa ki hai" ,Tax kon pay karta hai?

Government ko paisa kahan se milta hai?

One second..

Do we pay tax? On time? Write amont??? Do we take bill from shopkeers? its very common to hear shopkeepers saying "bhai bill chahiye to 10% extra lagega.." yaar paise bachane kisko nahi pasand? But is it right thing to do?

Dont we have any responsiblity towars our Nation? We all blame others for corruption and incompitence. Are we not corrupt? Are we being honest and loyal?

Coming back to Common Wealth Games, one cant say whether our government will be able to live upto the expectations or not?

"But we would like ask the people of India to mend their ways before the world arrives, not for the world alone but for us. "

Our guests will not live here forever.. it is us, our children who will live here.. Lets make it a better place for living.

An Initiative by CREZYN

Through this post we want to make a small appeal to the people to be more responsible citizens and to be more kind to the nation.

www.crezyn.com,

Email: info@crezyn.com

Minshu Tyagi's Brief on Crezyn Solutions : The Designing House

2009-12-30T03:15:00.008+05:30

Crezyn Solutions is designing hub in North Delhi area. It was started by a group of young people who wanted to bring about the change in the designing world. In the times when most of the designs are the copy of some famous designs, Crezyn has bring forth some extra ordinary designing skills which is appreciated by all its clients. Every single project is customized to the needs of the client.

Their zeal to excel and the dedication to perform have brought them a great deal of appreciation from its clients. With each project they try to outdo themselves. Their designs are mostly simple and elegant with no unnecessary elements . The idea is to create maximum impact with minimal detailing. They have this freshness which makes them different from others. The team is young and their designs are new. Best part is that their rates are really affordable and appropriate.

They provide best services at minimum prices. If you are looking for some brilliant designs at an affordable price, then CREZYN is just the right choice.

Interview : Minshu Tyagi , Creative Head - Crezyn Solutions.

More Info. visit: http://www.crezyn.com/

Graphic Designing, Do you Have it in You?

2009-11-18T01:02:00.004+05:30

How many of you can Design a Ferrari? How Many of you can Design a Taj Mahal? How many of you can design Apple ‘s Website ?

Most of you must be having this feeling that “YES , I CAN DO THAT“, “Yes I can design a Website that is Similar to Apple’s “ but that is not the actual designing , it is replicating.

The real designing will be if you create something that even Apple would love to adapt , Ferrari would love to admire that and all other's will praise you , that’s the real Innovation & Creativity.
The real designing is not just replicating the earlier work, It’s the Innovation the creativity … And this can’t be learned . Creativity & Innovation comes from inside you or we can say its IN-BORN Talent and if you are looking for someone who can do this is CREZYN.

The Complete Designing House . For more Info visit: www.crezyn.com

Services offered by CREZYN:

Graphic Designing
2d Animation
3d Modeling
Texturing
Lighting Material
Visual Effects
Rendering
Advertising
Annual Report Design
Banners
Book Layouts
Brochure Design
Business Card Design
Calendar Design
Catalogue Design
Cd Design
Collage
Compositing
Conceptualization
Corporate Brand Identity
Direct Mail
Envelope Design
Flyers
Illustrations
Letter Head Design
Logo Design
Magazine Design
Newsletter Design
Package Design
Poster Design
Portraits
Pencil Sketch
Stippling
Photo finish
Print Advertising
Print Media Designing
SEO
Online Digital Marketing
Signage Design
Sketching
Standees
Stationery Designing
Visiting Cards
Brochures
Pamphlets
Letterhead
Storyboarding
Video Editing
Website Designing
Website Maintenance

ALL NEW WORLD OF DESIGNING: CREZYN

2009-10-09T23:46:00.004+05:30

CREZYN

Creative Designing house that offers all designing solutions for taking your Brand Equity to next Level.

For More Information visit:
http://www.crezyn.com/

CDS: CREDIT DEFAULT SWAPS

2008-12-30T17:51:00.015+05:30

CDS is a credit derivative contract between two counterparties.

It covers the following points:

Periodic payments made by buyer to the seller
Buyer receives a payoff if the associated credit instrument fails or on the occurrence of a specified event.
If no default occurs then premium paid until the end of the contract.

CDS VS INSURANCE
In Insurance and CDS both, the buyer pays periodic payment and receives a specified sum if the event occurs.

Points of difference between insurance and CDS

In case of CDS the buyer may or may not own the underlying security.
Buyer does not have to suffer a loss from the default in case of a CDS.

ROLE OF PROTECTION BANK IN CASE OF DEFAULT

Physical settlement:
Protection seller pays the buyer par value, takes delivery of a debt obligation of the reference entity .

Cash settlement:
Seller pays the buyer the difference between par value and the market price of the debt obligation.

USES OF - CDS
Can be used as Speculation, Arbitrage and Hedging tool.

Speculation

• Allows investor to speculate on changes in an entity’s credit quality.
• Credit-worthiness increases-CDS spread decreases n vice-versa.
• An investor may buy or sell the protection

Hedging
• CDS often used to manage the Credit-risk.

Arbitrage
• Company’s stock price and its CDS spread should exhibit a –ve correlation.
• Arbitrageur will try to exploit the market inefficiencies.

Auctions

• When a credit event occurs on a major company on which a lot of CDS contracts are written,an auction may be held to facilitate settlement of a large number of contracts at once,at a fixed cash settlement price.

• ISDA- auctions ,an effective way of settling large volumes of outstanding CDS contracts.

WHAT IF COUNTER PARTIES DEFAULT ?

• Risk of counter parties defaulting.
• Deregulation in CDS contracts not being public –Aggregated risk.
• Sudden loss and decrease in lending liquidity in 2008.
• After Lehman bankruptcy, companies reported to get more bankrupt.
• Since CDS spread was increasing , Lehman and AIG lost credit worthiness

SYSTEMIC RISK IN CREDIT DEFAULT SWAP

What is Systemic Risk?
 Risk of collapse of an entire system or entire market.
 Risks imposed by inter-linkages and interdependencies in a system or market
 which could bring down the entire system if one player is eliminated

CDS: SYSTEM RISK EXAMPLE
Company B buy a CDS from company A with a certain annual "premium", say 2%.

If the condition of the reference company worsens, the risk premium will rise
So company B can sell a CDS to company C with a premium of say, 5%, and pocket the 3% difference.
If the reference company defaults, company B might not have the assets on hand to payoff to C
It depends on its contract with company A to provide a large payout, which it then passes along to company C.

DIAGRAM 2

The problem lies if one of the companies in the chain fails, creating a “Domino effect" of losses.
I.e., If company A fails, Company B will default on its CDS contract to company C, possibly resulting in bankruptcy
Company C will potentially experience a large loss due to the failure to receive compensation for the bad debt it held from the reference company.
Even worse, because CDS contracts are private, company C will not know that its fate is tied to company A.

CONCLUSION

The risk of counterparties defaulting has been amplified during the 2008 financial crisis,
Lehman Brothers and AIG were counterparties in a very large number of CDS transactions.
A contributing factor to the massive decrease in lending liquidity during September/October 2008
Defaults of Lehman Brothers and AIG, their inability to pay out on CDS contracts could lead to Systemic Risk
As an example, Imagine a mutual fund bought some Washington Mutual corporate bonds in 2005 and decided to hedge their exposure by buying CDS protection, from Lehman Brothers.

Lehman's goes BANKRUPT, and protection was no longer active.
Washington Mutual's sudden default only days later would have led to a massive loss on the bonds; a loss that should have been nullified by the CDS.

AFFECT ON AIG

CDS also played an integral role in the federal government's decision to bail out the American International Group,
One of the world's largest insurers, in September 2008.
A.I.G. failed and defaulted on its swaps.
The result could be a daisy chain of failures across the international financial system, thus Federal Government bail out AIG.

FORTUNE 500 COMPANIES LIST OF 2008

2008-11-24T21:10:00.004+05:30

1. Wal-Mart Stores
2. Exxon Mobil
3. Chevron
4. General Motors
5. ConocoPhillips
6. General Electric
7. Ford Motor
8. Citigroup
9. Bank of America Corp.
10. AT&T
11. Berkshire Hathaway
12. J.P. Morgan Chase & Co.
13. American International Group
14. Hewlett-Packard
15. International Business Machines
16. Valero Energy
17. Verizon Communications
18. McKesson
19. Cardinal Health
20. Goldman Sachs Group
21. Morgan Stanley
22. Home Depot
23. Procter & Gamble
24. CVS Caremark
25. UnitedHealth Group
26. Kroger
27. Boeing
28. AmerisourceBergen
29. Costco Wholesale
30. Merrill Lynch
31. Target
32. State Farm Insurance Cos.
33. WellPoint
34. Dell
35. Johnson & Johnson
36. Marathon Oil
37. Lehman Brothers Holdings
38. Wachovia Corp.
39. United Technologies
40. Walgreen
41. Wells Fargo
42. Dow Chemical
43. MetLife
44. Microsoft
45. Sears Holdings
46. United Parcel Service
47. Pfizer
48. Lowe's
49. Time Warner
50. Caterpillar
51. Medco Health Solutions
52. Archer Daniels Midland
53. Fannie Mae
54. Freddie Mac
55. Safeway
56. Sunoco
57. Lockheed Martin
58. Sprint Nextel
59. PepsiCo
60. Intel
61. Altria Group
62. Supervalu
63. Kraft Foods
64. Allstate
65. Motorola
66. Best Buy
67. Walt Disney
68. FedEx
69. Ingram Micro
70. Sysco
71. Cisco Systems
72. Johnson Controls
73. Honeywell International
74. Prudential Financial
75. American Express
76. Northrop Grumman
77. Hess
78. GMAC
79. Comcast
80. Alcoa
81. DuPont
82. New York Life Insurance
83. Coca-Cola
84. News Corp.
85. Aetna
86. TIAA-CREF
87. General Dynamics
88. Tyson Foods
89. HCA
90. Enterprise GP Holdings
91. Macy's
92. Delphi
93. Travelers Cos.
94. Liberty Mutual Insurance Group
95. Hartford Financial Services
96. Abbott Laboratories
97. Washington Mutual
98. Humana
99. Massachusetts Mutual Life Insurance
100. 3M
101. Merck
102. Deere
103. Apple
104. Countrywide Financial
105. Tech Data
106. McDonald's
107. Publix Super Markets
108. Nationwide
109. AMR
110. Northwestern Mutual
111. Emerson Electric
112. Raytheon
113. Wyeth
114. International Paper
115. Electronic Data Systems
116. Tesoro
117. Constellation Energy
118. Coca-Cola Enterprises
119. Goodyear Tire & Rubber
120. Manpower
121. Plains All American Pipeline
122. U.S. Bancorp
123. Occidental Petroleum
124. UAL
125. Bristol-Myers Squibb
126. J.C. Penney
127. Whirlpool
128. Staples
129. Delta Air Lines
130. Capital One Financial
131. Exelon
132. TJX
133. Eli Lilly
134. Murphy Oil
135. Express Scripts
136. Kimberly-Clark
137. Oracle
138. AutoNation
139. Loews
140. Freeport-McMoRan Copper & Gold
141. Cigna
142. Rite Aid
143. DirecTV Group
144. Xerox
145. CHS
146. United States Steel
147. Weyerhaeuser
148. Fluor
149. Anheuser-Busch
150. Google
151. Nucor
152. Kohl's
153. Nike
154. Union Pacific
155. Illinois Tool Works
156. Bear Stearns
157. Lear
158. Arrow Electronics
159. Anadarko Petroleum
160. Burlington Northern Santa Fe
161. Dominion Resources
162. Gap
163. Avnet
164. Office Depot
165. AFLAC
166. Southern
167. Halliburton
168. FPL Group
169. Paccar
170. Computer Sciences
171. Amazon.com
172. Bank of New York Mellon Corp.
173. Amgen
174. TRW Automotive Holdings
175. Progressive
176. United Services Automobile Assn.
177. Centex
178. Continental Airlines
179. Health Net
180. Chubb
181. CBS
182. L-3 Communications
183. AES
184. Sun Microsystems
185. Texas Instruments
186. Colgate-Palmolive
187. Qwest Communications
188. World Fuel Services
189. Toys 'R' Us
190. Pepsi Bottling
191. Viacom
192. Oneok
193. SunTrust Banks
194. Penske Automotive Group
195. Consolidated Edison
196. American Electric Power
197. Marriott International
198. Public Service Enterprise Group
199. Waste Management
200. PG&E Corp.
201. EMC
202. Textron
203. Sara Lee
204. Duke Energy
205. Edison International
206. Cummins
207. Eaton
208. Williams
209. FirstEnergy
210. ConAgra Foods
211. Omnicom Group
212. Schering-Plough
213. Northwest Airlines
214. General Mills
215. Circuit City Stores
216. Aramark
217. Medtronic
218. PPG Industries
219. Jabil Circuit
220. Marsh & McLennan
221. Devon Energy
222. Smithfield Foods
223. Masco
224. Dean Foods
225. State Street Corp.
226. National City Corp.
227. Kellogg
228. US Airways Group
229. R.R. Donnelley & Sons
230. Knight
231. Entergy
232. Sempra Energy
233. Genworth Financial
234. Visteon
235. D.R. Horton
236. Baxter International
237. Reliant Energy
238. Eastman Kodak
239. Danaher
240. DISH Network
241. Trane
242. Principal Financial
243. Genuine Parts
244. Harrah's Entertainment
245. Regions Financial
246. Lincoln National
247. Parker Hannifin
248. Progress Energy
249. Huntsman
250. BB&T Corp.
251. Unum Group
252. Baker Hughes
253. Yum Brands
254. Integrys Energy Group
255. Sanmina-SCI
256. Lennar
257. Limited Brands
258. Air Products & Chemicals
259. Guardian Life Ins. Co. of America
260. Xcel Energy
261. CSX
262. Apache
263. Aon
264. PNC Financial Services Group
265. Avon Products
266. Coventry Health Care
267. Southwest Airlines
268. National Oilwell Varco
269. Thermo Fisher Scientific
270. Applied Materials
271. CenterPoint Energy
272. YRC Worldwide
273. DTE Energy
274. Dollar General
275. Liberty Media
276. Norfolk Southern
277. Starbucks
278. Praxair
279. Pepco Holdings
280. Tenet Healthcare
281. Automatic Data Processing
282. Pulte Homes
283. Dana Holding
284. KBR
285. ITT
286. SLM
287. Terex
288. OfficeMax
289. SAIC
290. Reynolds American
291. BJ's Wholesale Club
292. Liberty Global
293. H.J. Heinz
294. Land O'Lakes
295. Rohm & Haas
296. Ameriprise Financial
297. Qualcomm
298. Sonic Automotive
299. Nordstrom
300. Alltel
301. ArvinMeritor
302. Smith International
303. Commercial Metals
304. Hertz Global Holdings
305. Monsanto
306. CIT Group
307. Fifth Third Bancorp
308. Jacobs Engineering Group
309. Assurant
310. Boston Scientific
311. Fortune Brands
312. First American Corp.
313. Virgin Media
314. Owens-Illinois
315. First Data
316. Sherwin-Williams
317. Energy Future Holdings
318. Calpine
319. NiSource
320. Campbell Soup
321. KeyCorp
322. Ashland
323. MGM Mirage
324. Chesapeake Energy
325. Crown Holdings
326. eBay
327. Pilgrim's Pride
328. Mohawk Industries
329. Ameren
330. Community Health Systems
331. Dover
332. Gannett
333. CarMax
334. Smurfit-Stone Container
335. VF
336. Ball
337. Eastman Chemical
338. Dillard's
339. Clear Channel Communications
340. KB Home
341. C.H. Robinson Worldwide
342. Western Refining
343. Enbridge Energy Partners
344. Targa Resources
345. Reliance Steel & Aluminum
346. PPL
347. Winn-Dixie Stores
348. GameStop
349. Estee Lauder
350. Synnex
351. AK Steel Holding
352. American Family Insurance Group
353. Yahoo
354. Dole Food
355. Federal-Mogul
356. MeadWestvaco
357. Great Atlantic & Pacific Tea
358. Family Dollar Stores
359. AGCO
360. Owens & Minor
361. Energy Transfer Equity
362. McGraw-Hill
363. Autoliv
364. Global Partners
365. Quest Diagnostics
366. CMS Energy
367. Celanese
368. Bed Bath & Beyond
369. Whole Foods Market
370. IAC/InterActiveCorp
371. Ryder System
372. Black & Decker
373. Interpublic Group
374. Cablevision Systems
375. Goodrich
376. Aleris International
377. W.W. Grainger
378. Newell Rubbermaid
379. Group 1 Automotive
380. Becton Dickinson
381. Embarq
382. Avery Dennison
383. Oshkosh
384. Performance Food Group
385. Peter Kiewit Sons'
386. Omnicare
387. ProLogis
388. Safeco
389. Franklin Resources
390. Hormel Foods
391. NCR
392. Molson Coors Brewing
393. Tenneco
394. AutoZone
395. TravelCenters of America
396. Starwood Hotels & Resorts
397. Harley-Davidson
398. Thrivent Financial for Lutherans
399. Pitney Bowes
400. Allied Waste Industries
401. Stryker
402. Charles Schwab
403. NRG Energy
404. CB Richard Ellis Group
405. Pantry
406. Advanced Micro Devices
407. Emcor Group
408. Wesco International
409. Charter Communications
410. Henry Schein
411. Avis Budget Group
412. Ross Stores
413. Mattel
414. Realogy
415. Darden Restaurants
416. Atmos Energy
417. Corning
418. Anixter International
419. Northeast Utilities
420. Hexion Specialty Chemicals
421. Asbury Automotive Group
422. Mosaic
423. Affiliated Computer Services
424. Brunswick
425. Marshall & Ilsley Corp.
426. Shaw Group
427. Micron Technology
428. Kelly Services
429. Unisys
430. Newmont Mining
431. Owens Corning
432. Peabody Energy
433. W.R. Berkley
434. Blockbuster
435. Fidelity National Financial
436. XTO Energy
437. UGI
438. Ecolab
439. Western Digital
440. Host Hotels & Resorts
441. Allegheny Technologies
442. Foot Locker
443. Agilent Technologies
444. Precision Castparts
445. Boise Cascade Holdings
446. Barnes & Noble
447. Northern Trust Corp.
448. Wm. Wrigley Jr.
449. URS
450. Rockwell Automation
451. BorgWarner
452. Pacific Life
453. Longs Drug Stores
454. DaVita
455. Graybar Electric
456. Leggett & Platt
457. Timken
458. Expeditors International of Washington
459. Constellation Brands
460. USG
461. Symantec
462. Frontier Oil
463. Energy East
464. NVR
465. Auto-Owners Insurance
466. SPX
467. Tribune
468. Fiserv
469. Sovereign Bancorp
470. Lexmark International
471. Hershey
472. SunGard Data Systems
473. Western Union
474. Clorox
475. BlackRock
476. Advance Auto Parts
477. Insight Enterprises
478. Telephone & Data Systems
479. Liz Claiborne
480. Western & Southern Financial Group
481. Fidelity National Information Services
482. BJ Services
483. Hovnanian Enterprises
484. Holly
485. Universal Health Services
486. El Paso
487. Spectra Energy
488. Erie Insurance Group
489. PetSmart
490. Cameron International
491. Chiquita Brands International
492. Jarden
493. Big Lots
494. Sealed Air
495. Toll Brothers
496. United Stationers
497. Robert Half International
498. FMC Technologies
499. Perini
500. Scana

FOREX: LC’s as a BUSINESS tool of EXPORTS

2008-11-23T13:32:00.003+05:30

INTRODUCTION

L/C is the most used payment term in International Trade and I'll be fairly specific on this topic. L/C is a perfect procedure to equally protect your interests and your buyer's interests. Using L/C as a term of payment, you risk almost nothing and at the same time it
ensures the buyer that goods are shipped before the payment has occurred. However, you only will be paid if all terms stipulated in the L/C are met and all documents specified in the L/C strictly comply with agreed conditions and are presented in time.
Before choosing L/C as a term of trade, you must understand what it is, how it works and what you can do to minimise risks involved in the L/C payment process.

OBJECTIVES OF STUDY

The objective behind our study is to learn about the LC’s As a business tool of exports and also to learn different types of Letter of Credit. After this study, we can understand this export tool and Its Importance

EXPLANATION:

Letters of Credit are regulated by International Chamber of Commerce under the Uniform Customs and Practice for Documentary Credits (UCP 500). L/C is a conditional bank guarantee of payment for supplied goods. "Conditional" means that to get paid you have to present the bank-guarantor with documents, which strictly comply with the terms and conditions specified in the L/C.

There are different forms and types of L/C, which you may (or should not) use in your operations, viz

Revocable and Irrevocable L/C
"A revocable L/C may be amended or cancelled by the Issuing Bank at any moment and without prior notice to the Beneficiary. This is as simple, as that. Agree that the L/C is irrevocable before you go any further in your L/C negotiations.

Confirmed L/C
When you export to a country with economical or political instability or if you are unfamiliar with the Issuing Bank, you should require that the L/C be confirmed by a first-class bank. If L/C is confirmed, the confirming bank is liable for the payment.

Transferable L/C
Transferable L/C is a perfect financial tool for middlemen to secure their margin without involving any funds. It allows dealing with more than one beneficiary. When a transferable L/C is issued in your favour, you can transfer it to your seller and use it as a payment.

L/C "can be transferred only if it is expressly designated as "transferable" . Transferable L/C must correspond with the original L/C, "with the exception of:
- the amount of the L/C,
- any unit price,
- the expiry date,
- the last date for presentation of documents,
- the period for shipment.

L/C payable at sight
"Payable at sight" means that you'll be paid "immediately" (in fact, it may take up to 7 days) after presentation of the documents stipulated in the L/C to the Issuing Bank or to the Confirming Bank if it was confirmed.

L/C payable on the maturity date
If deferred payment was agreed, you'll be paid on the maturity date indicated in the L/C after presentation of the documents stipulated in the L/C to the Issuing Bank. One should not forget to specify the date from which the deferring period starts (e.g. 90 days after date of transport document).

HOW LC WORKS?

There are at least four participants, when dealing with L/C:
- The buyer – the Applicant
- You - the Beneficiary
- Bank, the payment will come from – the Issuing Bank
- Bank, the payment will go to – the Advising Bank.
The diagram below shows how participants are involved in the process of payment under L/C:

1. The Applicant and the Beneficiary negotiate terms and conditions of the L/C
2. The Applicant applies to the Issuing Bank to issue the L/C
3. The Issuing Bank issues the L/C and forwards it to the Advising Bank
4. The Advising Bank checks the apparent authenticity of the L/C and advises the L/C to the Beneficiary

5. The Beneficiary checks if the L/C complies with the commercial agreements and if all terms and conditions specified in the L/C can be satisfied and ships the goods

6. The Beneficiary assembles the documents specified in the L/C, checks the documents for discrepancies with the L/C, draws the draft and presents the draft and the documents to the Advising Bank

7. The Advising Bank bears the draft and the documents against terms and conditions of the L/C and forwards them to the Issuing Bank

8. The Issuing Bank checks if the documents comply with the L/C and makes a payment immediately (if the L/C is available by sight) or on a certain date (if L/C is available by deferred payment)

Another party, which may be involved in the L/C procedure, is the Nominated Bank.
There are additional charges for the confirmation of the L/C, which depend on the risk involved in dealing with the particular country. The responsibility to pay for the confirmation is negotiable and usually is paid by the buyer. However, if it wasn't agreed prior to the issuance of the L/C, you are the one who will pay for this service.

When L/C is to be confirmed the payment process is different and is shown in the following diagram:

1. The Applicant and the Beneficiary negotiate terms and conditions of the L/C
2. The Applicant applies to the Issuing Bank to issue the L/C
3. The Issuing Bank issues the L/C and forwards it to the Advising Bank
4. The Confirming Bank confirms the L/C to the Advising Bank
5. The Advising Bank checks the apparent authenticity of the L/C and advises the L/C to the Beneficiary

6. The Beneficiary checks if the L/C complies with the commercial agreements and if all terms and conditions specified in the L/C can be satisfied and ships the goods

7. The Beneficiary assembles the documents specified the Issuing Bank in the L/C checks the documents for discrepancies with the L/C and presents them to the Advising Bank

8. The Advising Bank bears the documents against terms and conditions of the L/C and forwards them to the Confirming Bank

9. The Confirming Bank checks if the documents comply with the L/C and makes payment immediately (if the L/C is available by sight) or on a certain date (if L/C is available by deferred payment)

10. The Issuing Bank reimburses the funds to the Confirming Bank immediately after the payment
There is another advantage in using confirmed L/C. Assume that after long negotiations your potential buyer is ready to strike a deal, which is very profitable for you. The only condition you are not comfortable with is the deferred payment of 90 days after the shipping date. You feel that you may have some problems with cash flow, because you have to pay for the freight, packaging and so on. Well, with the confirmed L/C you won't.

A confirmed L/C may be used not only for securing the payment under the L/C but also as a security to obtain additional funds from the Advising Bank. Generally, the Advising Bank can discount the L/C in your favour as soon as the documents stipulated in the L/C are presented to the bank and checked. The funds will be considered as a loan, which will be automatically reimbursed by the Confirming Bank on the maturity date indicated in the L/C.

LC MUST CONTAINS FOLLOWING:

Although the buyer applies for L/C, it is essential for you to be absolutely sure that the L/C was prepared correctly and there is no legitimate ground for refusal of payment under the L/C.
L/C must enclose:
- Full Applicant's name and address
- Full Beneficiary's name and address
- Issuing Bank details
- Advising Bank details
- Form and type of credit (e.g. irrevocable, transferable)
- Issue date
- Expiry date
- The latest date of shipment (usually "no later than")
- Expiry date for presentation of documents
- Amount payable under L/C
- Currency of payment
- Port of loading
- Port of discharge
- Terms of delivery
- Indication of the payment of the freight (Freight Prepaid/Freight Collect)
- Allowances for partial shipment or transshipment if needed
- Type of payment availability (e.g. at sight, on the maturity date)
- Description of goods (must correspond with the description given in the invoice)
- List of documents required for the payment
- Accountability for bank charges

CONCLUSION:

Letters of credit are still an important tool used in international trade. They provide security for both buyer and seller where conditions may be uncertain or there is little or no previous trading relationship between the parties. However, letters of credit only provide this security when they are used in a prudent manner – it is essential that exporters remember that documents must be in strict compliance with the credit to secure payment. Treating letters of credit in a casual manner will remove the very level of security the exporter is seeking when selecting them as a method of payment. To ensure that letters of credit are dealt with in a competent and professional manner it is important for companies to have an action plan or checklist when dealing with letter of credit trade. Those companies who are dealing with letters of credit on an infrequent basis (and in some instances perhaps others who deal more often with letters of credit) may feel that it is not appropriate to have the expertise to deal with letters of credit in-house. In this case use may be made of outside expertise and experience for example their freight forwarder. This should be seen as a positive step taken to help ensure that the letter of credit process runs smoothly. However, using outside expertise does not preclude taking steps during contract negotiations to ensure that the credit is set up appropriately.

GLOSSARY OF COMMONLY USED TERMS

The Advising Bank
The bank, usually but not necessarily in the beneficiary's country, through which advice of the letter of credit is sent by the issuing bank.

The Issuing Bank
The bank which issues the letter of credit on the instructions of the importer (usually, but not necessarily, the importer's own bank)..

The Nominated Bank
The Nominated Bank is the bank, which is authorized by the Issuing Bank "to pay, to incur a deferred payment undertaking, to accept Draft(s) or to negotiate. The Issuing Bank may authorize the Nominated Bank to negotiate the drafts and/or documents. Negotiation means that the nominated Bank – in this case the Negotiating Bank - gives value to such drafts.

Confirmation of L/C
The confirmation of the L/C by another bank - the Confirming Bank - means that if the Issuing Bank refuses to make the payment, the Confirming Bank is responsible for this payment.
The best-case scenario is when the Advising Bank confirms the L/C. If the Advising Bank does not agree to confirm the L/C, ask the bank to recommend you another bank to be the Confirming Bank.

WEBLIOGY:

http://en.wikipedia.org/wiki/Letter_of_credit
http://www.unzco.com/basicguide/c13.html
http://www.scribd.com/doc/90191/Methods-of-Payment-Terms-Conditions-and-Alternative-Financing-Sources-For-Export-Sales
http://www.answers.com/topic/letter-of-credit
http://www.sail.co.in/lc.pdf

FOREIGN TRADE: CONTRAST BETWEEN INDIAN AND CHINESE SEZ

2008-11-04T20:51:00.005+05:30

“Why China is already an economic power and Asia’s other giant, India, is still struggling to catch up?”

Answer is Special Economic Zones, SEZ’s are industrial areas designed to attract outside investment by offering liberal foreign ownership policies and generous tax incentives. The Chinese started their liberalization and industrialization with the formation of SEZs in late 70s and early 80s. with an eye on luring dollars back to the motherland from compatriots in Hong Kong, Macao and Taiwan.

Unlike India, where SEZ is being incorporated 15 years after the start of Asia's first EPZ set up in Kandla in 1965. The SEZs were vital to the development of China’s export machine. Twenty five years later, India’s politicians have woken up and suddenly discovered the concept of SEZs. And realized the importance of SEZ’s. The Indians were late to the game.

Now question is -
“ Can we do better than China? “

Although ,currently as many as 267 SEZ’s have already been cleared by the government; out of these, 150 proposals have won final approval”. But on the other side : Critics are angry, saying that Indian peasants are getting robbed, losing their farmland to the industrial zones. Farmer activists have gone to the Supreme Court to stop things.
India is democratic, unlike china thus Indian leaders leader’s can’t just railroad through policies the way China’s communists do. But it does seem to be a shame that India, with a desperate need to generate more jobs for people from poor rural areas left out of the IT services boom, can’t figure out a way to get SEZs right.

To Choose from Contrary choices following points should be considered:

1. SCHEME POLICY :

INDIA
1 - 5 Years “ NO TAX” .
6 - 10 Years “ 50 % of profit is taxable.
11 - 15 Years “ 50 % of Ploughing back profit is Taxable.

CHINA
NO TAX during stand-up years before making PROFITS.
The 1st Year company makes the profits, the tax clock starts:
1st Year : NO TAX.
2nd Year: NO TAX.
3rd Year : 50% of Profits are Taxable.
4th Year : 50% of Profits are Taxable.
5th Year onwards 100% Profits are Taxable.

2. All the Chinese SEZs are located along the coast line while the Indian SEZs are mostly concentrated near major cities and more than half are being developed by real estate companies attracted by the cheap land prices.

3. China started its liberalization and industrialization with the formation of SEZs in late 70s and early 80s, while in India it’s the 2000’s policy that started SEZ’s .

4. China had a Master Plan and an economic framework on how to build and proceed with SEZs, most probably inspired by the success of Asian Trading Hub, Hong Kong. The Dragons started building massive cities for manufacturing and industrialization under their SEZ framework. Dragons also rolled out red carpet for foreign companies to build and operate from these SEZs.

5. Dragon SEZ blueprint says, Size Matters for SEZ. Shenzhen is the largest SEZ in China and is spread over 493 Sq Kms.(49,300 hectares). While the largest SEZ in India, Reliance - Navi Mumbai and Maha Mumbai SEZ, is mere 14,000 hectares.

6. Chinese SEZ initiative is government driven, Indian SEZs are driven by private sector.

7. China has only five SEZs, while India has approved 200 and still counting.

In order to conclude following is apt-

"We should look at entire districts, with a port and a hinterland for SEZ. We should make large-scale investments in that so there is synergy, and we should ensure that manufacturing has priority, followed by services, but the vision has to be much larger. The way it is today, the vision is too myopic, and too small, and I am afraid we will not get the benefit that China did.
As said by Mr. Mohandas Pai (EXECUTIVE DIRECTOR INFOSYS).

BuDDIes...

2008-10-12T20:43:00.014+05:30

KAran, Varun , SwAti , AsTha , SheFALi , arPIT , ANKit & a SpeCIAL FrienD are my best buddies...

KAraN: My Best pal rather i should say my brother . He is with me since my childhood , we are LANGOTIYA YAAR...

OUR STORY-
My Dad and his Dad were neighbours, my mummy and his mummy were college friends and shared same colony as our fathers. Then they got married and both couples became neighbours, soon we came and since then we are best pals...
We shared same preparatory school "LITTLE ANGELS", then again we took admission in same secondary school . During our school time, we were always together. I remember an instance, when i stabbed pencil on a students face in order to take his revenge . :). Till 6th Class we were together , but after that Mrs SHABNAM AJMANI seperated us but we are like peas in a pod . In 11th class we agin got united... I Miss those days .. He is KARAN.

VArun -Not my Childhood friend , Despite of all the differences , i still consider him one of my best Pal .
SWATI- My sweet , little , gola ..
AStHa chota cute Baby...
SheFali -Sweet friend .
ArPIT- real partner
AnKIT TyaGi - CAn do any thing for you and consider others before himself...

They all are my best buddies , and are very special to me .

" I used to have one more friend , who was always there for me whenever i needed , she taught me about good and bad things ,and she was also with me at that time when i have no one with me ,the worst phase of my life.
She has always given me strength and support. She makes me realize that i do have someone , on whom i can trust blindly. . . . . . . . . . . .Thank You yaar .. :) "
I will never, ever forget you as my BEST FRIEND ..."

BEST POEM- " FOR MY LOVE"

2008-10-07T23:00:00.012+05:30

My best poem, written by the most sweetest, cutest and adorable artist...

FOR MY LOVE

I Love to start my day with thoughts of you
my night ends with Dreams of you..
every single moment i Think of you
My Love.. my Heart beats for you..

The caress of your hand send shivers down my spine
Everyday i thank God that you are mine..
when you Smile at me..my Days shine
the Love of my Dreams..Always be mine..

i Love it wen we walk hand in hand
you are my Love my Jaan my Friend

When you smile at me.. my Heart melts
i Love you Munhu... it always tells.
When you touch me.. i skip a beat or two
Each Day i feel..m more in Love with you..:)

You really are an Angel sent from above
to take care of me and shower with Love
With you i knw how it feels to be Loved
to be in the arms of my Beloved

When you are around i feel so Good
i Love you more than i never ever could
With you i found..that Dreams come true
i know you Love me and so I Do...:) :*

MINSHU TYAGI

BEST MOVIE- "AAA"

2008-10-06T00:32:00.007+05:30

ANDAZ APNA APNA

All time favorite MOvie... How many times have you seen this movie???? I have seen this 33 times and still watching the same... and ya "YE MERE PAPA JI NE NAHI BANAYI THI" :):) . This movie will make you laugh anytime any where. One of my best scene:

Now you tell ,How many times have you seen this movie ???

:)

IDENTIFY THE HAND...

2008-10-02T00:11:00.030+05:30

All of you must be aware of "APES"... English word,denoting any non-human member of the Hominoidea.

One of them is CHIMPANZEE.
Few days back during my visit to SCIENCE MUSEUM, i learned about the differences between HUMAN and CHIMPs Hand ,here are the snapshots

HUMAN HAND:

CHIMPANZEE HAND:

Now people, from the following images identify the HUMAN and the CHIMP by looking at their hands :)

PICTURE A :

PICTURE B :

Now from the above image which do you think is CHIMPANZEE...? Is it 'A' OR 'B' ?????

CHIMPANZEE AND HUMAN TOGETHER :)

I LOVE THIS CHIMP...

Questionare

2008-09-26T21:38:00.003+05:30

Hi , Kindly provide two minutes of your precious time in filling this survey ... Click on link below to do so. Your Help would be really appreciated .. Thanks in Advance.. :)
Its a survey on "PRE-PURCHASE of SHAMPOOS & NOTEBOOKS(PC)"

Click Here to take survey
">http://www.surveymonkey.com/s.aspx?m=aMD4b1nQ9Wi_2fwTnYSIQuug_3d_3d>

-------------------------------------------

About Me...

2008-09-01T19:57:00.002+05:30

I am BHATIA , SACHIN BHATIA ...

Nothing to do with Bond :) , I am very down to earth , fun loving and hard working guy . Even the Bond style is used just to make you smile it has nothing to do with any of the James Bond although every guy loves to be the Bond , But i am very happy as i am , SACHIN BHATIA.

STUDIES

As far as studies are concerned , i have sustained my performance right after the Tenth class. Since then i have a consistent results. I secured marks as- 74% , 78% , 73% in 10th , 12th and Graduation respectively and in recent semester result of my Post-Graduation course i again secured 78% .

This is all because of my PAPA (Dad), who taught me the importance of marks after my Pre-Boards exams in which i failed several times, i requested my teacher to pass me in pre-boards as i am not able to clear one of them and secured passing marks in remaining , although he passed me but he stated a sentence in front of my parents that " SACHIN, I am passing you now , But i assure you, that you can not clear these Board exams..." Then my dad made me realize the importance of board exams , and told me that these marks will stick with you throughout your life.. Before all this i was very much involved in Sports so before 10th class ,i also approched my Sports Teacher in order to help me out in passing some exam :) .

Soccer was the game that i play 24 x 7 and Cricket , Table Tennis, Volley Ball and Short-Put are also amongst my favorite , but now tables have turned , i still practice Short-Put , but its the different Short-Put, the Future derivatives one :) .

Presently I am in second year ,

Doing MBA (Marketing & Finanace) . Its a dual speciaization course and I am pursuing this from very overly hyped college IIPM-Delhi but i must say its a nice college .One can have fun and at the same time one can learn a lot, if one is willing to learn. Being a science graduate i need to work hard and thus learned a lot and still working harder to gain as much as i can . This college helped me in improving my personality and has also taught me the lessons on " How outer world is full of hypocratic people" or i can say i learned a bit of Duniyadari also.

In my Graduation, i have done Bachelors of Technology in Electronics and Communication , in Short B-Tech (ECE) from GGSIPU Delhi, and which totally changed my way of think and analyzing things. I have chosen this field , as i am very fond of Electronics as well as Electronic Gadgets.
Mobile phone, Nokia-NGAGE was one of my favorite gadget during that time , i learned a lot about that phone. It was because of that mobile set that i learned about the mobile operating sytem SYMBIAN and its various version. It was a gaming phone and i purchased three of these sets during my graduation :)...

HOBBIES ,INTERESTS & LOVE
I am very fond of GAMING , i love to play games and SONY's PLAYSTATION 2 is my all time favorite gaming console and also the protability champ THE PSP... I have both of them and love to play them whenever i get some time .. Further my hobby is Weight training and body buiding . Love is Nannhu .... :) :)