Cheers Future Mangers: No effect of recession on B-school placement

The job market, according to B-Schools that have released their placement data, hasn't looked this good in a long time for fresh management graduates. Top global recruiters have upped their hiring, average salaries have jumped by a minimum of 20 per cent and the number of companies visiting campuses for placement interviews has touched the three-digit mark in most institutes.

The 2012 Placements Story is best told by the experience of IIM-C. Campus interviews at the institute were slotted to be held over five days, but each of the 356 students of its graduating class bagged a job in four. And some must have landed more than one, because the number of collective offers for the batch stood at 423.

Leading the field, of course, is IIM-A, where the prestigious Boston Consulting Group has issued offers to 17 graduates, as against 11 last year. The placement process is still in progress at IIM-A, so the final figures aren't in.

Already, the average salary being dangled is reported to be in the stratospheric Rs 22 lakh to Rs 27 lakh range. The amounts on offer are being buoyed because of the interest evinced by big-ticket consulting companies such as McKinsey (which also hired 17 students from the Indian School of Business, Hyderabad), Bain and Co, AT Kearney, Accenture and Oliver Wyman.

At IIM-C, Zurich Financial Services have come to an Asian BSchool for the first time in its history to recruit for its Zurich and New York offices. Bank of America Merrill Lynch, according to CoolAvenues. com, has hired for an international finance opening based out of Hong Kong.

Capital One has made a global offer for its Dallas (Texas) office. And Swiss- Italian steel giant Duferco is hiring for the first time for its Lugano (Switzerland) head office.

The good news isn't limited to the IIMs. "As many as 98 per cent of our students got jobs within the first three days," an ebullient Fr. E. Abraham, director, XLRI-Jamshedpur, says.

Global investment banking and securities firm Goldman Sachs has made 12 offers for asset management and investment research jobs at the institute. XLRI's graduating batch of 235 has snapped up 284 offers, confirming the pattern of more jobs than new graduates.

Even at newbie IIM-R, the graduating batch of 47 has 58 offers to show, and the placement exercise is continuing. At Bharatiya Vidya Bhawan's S. P. Jain Institute of Management and Research, the batch of 176 has got 257 offers - 51 per cent of them going home with an annual domestic salary package of Rs 15 lakh or more.

"Our highest domestic salary this year is Rs 19 lakh, compared with Rs 15.5 lakh last year," Munish Bhargava, head of placements, IIFT, discloses. "The average salary of our students has also gone up to Rs 12.1 lakh from Rs 11.62 lakh last year," he adds.

IIFT students have accepted offers from 80 companies, including 33 first-time recruiters such as Duferco Group, German logistics giant Duegro, consulting biggies KPMG and Technopak, and ecommerce leader Flipkart. At XLRI, the highest domestic salary is Rs 40 lakh and the top international offer stands at Rs 61.8 lakh.

B-Schools attribute this surge in interest in hiring to the active role of the alumni. "Our alumni network around the world played a critical role in the placement process," Bibek Banerjee, director, Institute of Management Technology, Ghaziabad, says.

The sentiment is shared by Amit Dhiman, IIM-Calcutta's placement director, who says in a statement to CoolAvenue.com: "The alumni played a crucial role in this bad market scenario and were there to support us whenever we needed them. This shows the strength of Brand IIM-C."

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Common tax code on the anvil for service tax, excise duty

On the lines of the proposed Direct Taxes Code (DTC), the government plans to come out with a Common Tax Code (CTC) for service tax and central excise duty to harmonize the two indirect levies.

"I propose to set up a study team to examine the possibility of a common tax code for Service Tax and Central Excise which could be adopted to harmonize the two legislations as much as possible at the right time," finance minister Pranab Mukherjee said in the Budget 2012-13.

The government also proposed raising the rates of service tax and excise duty to 12 per cent from the current 10 per cent level.

Pointing out that Service Tax law is complex and sometimes avoidably different from Central Excise, Mukherjee said "we need to bring the two as close as possible in the light of our eventual goal of transition to GST (Goods and Services Tax)".

While the GST Bill is currently being studied by a parliamentary standing committee, the structure of GST Network (GSTN) has been approved by the Empowered Committee of State Finance Ministers. It will be set up as a National Information Utility and become operational by August 2012.

"The GSTN will implement common PAN-based registration, returns filing and payments processing for all States on a shared platform," Mukherjee said, adding that the use of PAN as a common identifier in both direct and indirect taxes, "will enhance transparency and check tax evasion".

As a measure of harmonization between Central Excise and Service Tax, a number of alignments have been made.  "These include a common simplified registration form and a common return for Central Excise and Service Tax, to be named EST-1. This common return will comprise only one page, which will be a significant reduction from the 15 pages of the two returns at present.

Income tax exemption limit raised to Rs 2 lakh

Pranab Mukherjee raised the exemption limit for income tax by just Rs 20,000 from Rs 1,80000 to Rs 2 lakh.

The new tax slabs are as follows:

Up to Rs 2 lakh: No tax

From Rs 2 lakh to 5 lakh: 10%

From Rs 5 lakh to 10 lakh: 20%

Above Rs 10 lakh: 30%

Promise to curb black money, major push on infrastructure, capital market reforms and huge subsidy cut were among the other proposals listed by Pranab Mukherjee in the Union Budget for 2012-13.

The revision in tax slabs will give some direct tax relief to individuals, even as eating out, buying luxury cars, air travel, availing some professional services and investing in gold jewellery will become costlier.

"This will provide tax relief of Rs 2,000 to every tax payer," the finance minister said, adding: "My proposal on direct taxes will result in a revenue loss of Rs 4,500 crore."

He proposed to raise the service tax rate to 12 percent from the present 10 percent.

Assuring further liberalisation of capital markets, he announced a new equity savings scheme to extend income tax deduction of 50 percent to those who invest up to Rs 50,000 in equities and whose annual income is less than Rs 10 lakh.

US threatens sanctions against India over Iran oil

The Obama administration is threatening to impose sanctions on India over its continued economic ties with Iran amid disagreements between Washington and New Delhi over how much and how soon the latter is reducing oil imports from the (in US eyes) pariah nation. 

India has "failed" to reduce its purchase of Iranian oil and if it doesn't do so, President Barack Obama may be "forced" to impose sanction, unnamed administration officials were cited as telling Bloomberg wire service. A decision in this regard could come as early as June 28, they added, implicitly offering New Delhi a ten- week window to show a decline in Iranian oil imports. 

Indian officials have contested the US assessment by insisting New Delhi is scaling down Iranian oil imports with more reduction in the pipeline, but that concession has been offset by India's commerce ministry's well-publicized efforts to ramp up trade with Iran in other areas, a move that has not gone unnoticed by the powerful pro-Israeli lobby in US. 

The anti-Iran lobby in US has been galvanized by a report on Wednesday from the International Energy Agency (IEA), showing that India and South Korea "sharply" increased their oil imports from Iran in January. 

India has enough time to show compliance since the US law relating to sanctions vis-a-vis Iran kicks in only if countries don't make a "significant" cuts in their Iranian crude oil purchases during the first half of this year. The law does not specify by what percentage a nation must reduce its imports to qualify for an exemption from sanctions, so countries like South Korea and Japan have been negotiating with Washington the quantum of cuts they can live with. India is also believed to be in discussion with U.S in this matter. 

The Obama administration itself is in a bind over squeezing too hard and tightening oil supplies across the world. While Washington has offered to wean India and other countries from Iranian oil by arranging supplies from Saudi Arabia and Iraq, that could come at its own expense and rising oil prices. Already, gas prices are close to $ 4 a gallon at US pumps, and it is a well-acknowledged fact that the fortunes of US politicians running for high office is linked to pain (or otherwise) at the pump.

Sports Updates

• Cricket history for Sachin, but Bangladesh chase down India's 289
• Azarenka to meet Sharapova in Indian Wells final
• Nadal, Federer to play in BNP Paribas Open semis

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Budget 2012 Garma-garam

Sector Review (Source TOI)

Have you put your money in stocks and/or mutual funds? The Budget often impacts the bottomlines of industries and companies - and can make a difference to your investments. TOI commissioned CRISIL - India's leading ratings, research, risk and policy advisory company - to analyse how your market wealth could have been affected.

AIRLINES
State of the Industry
During April-December 2011, domestic and international passenger traffic grew 15.4% and 7.2% year-on-year, respectively, due to aggressive pricing by Indian carriers. However, the industry's profitability has been under pressure as players have been unable to pass on the entire increase in fuel costs. EBITDA (earnings before interest, taxes, depreciation and amortization) margins fell 17 percentage points year-on-year and stood at -4.8% during this period.

Budget Impact
The overall impact is expected to be neutral. Airline companies have been allowed to raise external commercial borrowings (ECBs) worth $1bn to fund their working capital needs. However, given the highly leveraged balance sheets and pressure on their margins, this move is not expected to have any significant impact. The proposal to reduce the rate of withholding tax on interest payments on ECBs to 5% from 20% for the next three years is expected to lower the cost of borrowings marginally for Indian carriers, which have raised funds through the ECB route.

BANKING & FINANCE
State of the Industry
Credit growth in the industry is expected to be flat at 17% in 2012-13 as interest rates soften, investment demand picks up and domestic debt replaces forex loans. Gross non-performing assets (GNPAs) rose to 2.8% of the total assets in December 2011 from 2.3% in March 2011.

By March 2013, GNPAs are expected to increase further to 3.2% of the total assets.

Budget Impact
The overall impact is expected to be neutral. In 2012-13, public sector banks (PSBs) are expected to receive majority of the Rs 15,900 crore allocated for recapitalization of government financial institutions. Additionally, a financial holding company is proposed to be set up to raise funds for PSBs, which is a positive, given that they need significant capital to meet Basel III norms. However, the RBI's ability to cut interest rates would be impeded by high fiscal deficit levels. This could hit investments and credit growth in 2012-13. Rise in disposable incomes due to a favourable change in tax slabs and continuation of 1% interest rate subvention on home loans up to Rs 15 lakh (for houses below Rs 25 lakh) would benefit financiers. 

CEMENT
State of the Industry
Demand growth in the first 10 months of 2011-12 was a muted 6% year-on-year due to the slow pace of construction activity. Large capacity additions during the year are expected to further drag down operating rates to 74%. However, average pan-India cement prices rose by approximately 15% year-on-year. Price rise is expected to offset the pressure of rising input costs.

Budget Impact
The overall impact is expected to be neutral. The Budget has proposed to increase the ad valorem component of excise duty to 12% from 10% while reducing the specific duty component to Rs 120 per tonne for non-mini cement plants. This is likely to increase the effective excise duty by 1-1.5% for most companies. The proposal to exempt imported non-coking coal from basic customs duty (earlier at 5%) is expected to increase operating profit by 1-1.5% at the industry level. However, at the company level, the impact will vary based on its dependence on imported coal.

INFRASTRUCTURE: ROADS
State of the Industry
Close to Rs 7 lakh crore investment is expected in roads and highways from 2011-12 to 2015-16 - more than double the amount pumped into the projects in the previous five-year period. Projects under National Highway Development Programme (NHDP) Phase I and II have largely been completed while awarding of projects under Phase III, IV and V is progressing at a brisk pace. Overall, approximately 40% of the total length under the NHDP is yet to be awarded.

Budget Impact
The overall impact is expected to be positive. National Highway Authority of India has been allowed to issue tax-free bonds totalling Rs 10,000 crore after last year's issue of Rs 10,000 crore was fully subscribed. This is expected to further support NHAI in its implementation of highway projects. At the corporate level, there has been a reduction in the withholding tax on interest payments of external commercial borrowings from 20% to 5%. This is expected to only marginally reduce the cost of borrowings of road developers since these companies' exposure to ECBs is limited.

PORTS & AIRPORTS
State of the Industry
Investments of Rs 1.2 lakh crore are expected from 2011-12 to 2015-16 towards the development of ports and airports, with ports accounting for 80% of the total funds. PPP projects are expected to account for over 75% of the investment. In 2012-13, traffic at airports and ports is seen growing at 10-11% and 6-7%, respectively.
Budget Impact

The overall impact is expected to be neutral. Allocation of funds in the form of tax-free infrastructure bonds for the ports sector remains unchanged at Rs 5,000 crore. While this will facilitate fund availability for port projects, it will not have a significant impact since the same amount was available last year and the ports sector was not able to issue any bonds. Companies in the ports and airport sectors having external commercial borrowings will see a reduction in their cost of borrowings as the rate of withholding tax on interest payments on ECBs is proposed to be reduced to 5% from 20% for the next three years.

FMCG
State of the Industry
Medium-term prospects for the sector remain healthy; growth is expected to be driven by increased offtake across product categories, continued rural penetration and rising per capita consumption. The sector is facing rising commodity costs and high competitive intensity. However, given the products' nature, it is able to pass on inflationary pressures to consumers.

Budget Impact
The overall impact is expected to be neutral. Higher slabs for personal income tax will increase disposable income, though the impact is not significant. The excise duty rates have been increased to 12% from 10%. The increase in excise duty will not materially impact the profitablilty of FMCG players, as some of their units are in duty-free zones and the large players are able to pass on the price increases to end-consumers. There is an increase in the basic excise duty on cigarettes longer than 65 millimetres, by adding an ad valorem component of 10% to the existing rates.

A hike in the excise duty on cigarettes will be neutral for ITC's profitability, as it will be able to pass on the increase to consumers.

STEEL
State of the Industry
Hit by the slowdown in automobiles, construction and infrastructure sectors, domestic consumption of steel rose by a mere 2.4% year-on-year during April-November 2011. With the recovery of these sectors, demand picked up in October-December 2011 and is expected to grow at 5-7% in 2011-12 and 6-8% in 2012-13. Weak demand and high input costs (especially, domestic iron ore prices) are expected to keep margins under pressure. But players with access to captive iron ore mines will be less affected.

Budget Impact
The Budget proposal to hike excise duty to 12% from 10% is expected to have a neutral impact on the industry. Hike in the excise duty is expected to be passed on to customers and is expected to result in a price rise of Rs 700 to Rs 1,000 per tonne. Increase in customs duty on flat steel could provide flat steel players the flexibility to further increase prices by Rs 500 to Rs 1,000 per tonne.

AUTOMOBILES
State of the Industry
Cars and UV sales are expected to moderate to 2-4% in 2011-12. Demand was affected by rising fuel prices, high interest rates and a strike at Maruti Suzuki's plant during the year. Two-wheeler sales have grown 11-13% owing to rural demand. MHCV sales have been impacted by lower freight availability, and are estimated to grow by 8-10% in 2011-12. LCV growth is seen at 26-29%.

Budget Impact
The overall impact is expected to be marginally negative. Higher excise duty on cars, commercial vehicles and two-wheelers will be passed on to consumers. Excise hikes will also be partially offset through the rise in individual tax slabs, especially in case of small cars and two-wheelers. Demand for sedans and luxury cars, though, will be hit with the rise in excise duty to 27% from 22% and basic customs duty to 75% from 60% on completely built units. Extension of interest subvention on crop loans, additional subvention up to 3% on prompt payment and 21% rise in agricultural credit is seen aiding tractor sales.

POWER
State of the Industry
Capacity addition in the power generation sector is expected to double to 86 gigawatt (GW) between 2011-12 and 2015-16 from 42 GW added between 2006-07 and 2010-11. It will be led by private companies. Limited domestic fuel availability to result in lower plant load factors. The weak financial position of state distribution utilities poses risk to power offtake and timely payments.

Budget Impact
The overall impact is expected to be positive. Exemption on 5% customs duty on thermal coal, natural gas and LNG will provide some relief to power generators reeling under high fuel costs. One-year extension of the sunset clause to avail of the 10-year tax holiday for new projects, and an additional 20% depreciation in the first year for power generation projects will encourage investments. The proposal to allow external commercial borrowings to part-finance the rupee debt of existing projects and reduction of withholding tax to 5% from 20% on interest payments on ECBs is expected to reduce borrowings cost. Availability of funds is expected to improve through provision for issuance of Rs 10,000 crore tax-free bonds.

TELECOM
State of the Industry
With a reduction in competitive intensity, mobile industry revenues are expected to grow at 13% in 2012-13 compared with the estimated 9% in 2011-12. Average revenue per unit is expected to improve, after falling at 20% compound annual growth rate in the past five years. The National Telecom Policy, expected in 2012, could provide clarity on issues such as spectrum pricing, M&A norms, spectrum re-farming, and abolishment of roaming charges.

Budget Impact
The overall impact is expected to be neutral. Operators are expected to pass on the service tax rate of 12% to subscribers. The excise duty on mobile phones has been retained at 1%. Under the scheme for support to public-private partnership in infrastructure, fixed network for telecommunication and towers have been made eligible for viability gap funding. However, this is not likely to have any significant impact. The government has estimated receipts of Rs 40,000 crore in 2012-13 from spectrum auction.

TEXTILES
State of the Industry
The apparel market grew approximately 10% year-on-year in value terms in 2011, led by higher prices. Sales volumes were flat while those in the export market fell 3%. Operating margins across the value chain fell in 2011-12, due to sluggish demand and limited pricing flexibility. In 2012-13, consumption is expected to rebound, aided by lower cotton prices and a consequent fall in apparel prices.

Budget Impact
The overall impact is expected to be positive as excise duty on branded apparels and made-ups has been cut and customs duty on shuttle-less looms removed. Effective excise duty on branded apparels and made-ups has been cut to 3.6% from 4.5%. Concessional excise duty on cotton chains (excluding branded garments and made-ups) has been raised to 6% from 5%, although it remains optional. Allocations under the Technology Upgradation Funds Scheme for 2012-13 are at Rs 2,910 crore compared with the revised estimate of Rs 3,700 crore in 2011-12. Currently, it is not clear whether TUFS would be available for investments after March 31, 2012. However, the ministry has recommended its continuation.

FERTILIZER
State of the Industry
In 2011-12, fertilizer consumption rose by a marginal 1.9%, to 58 million tonne, as complex fertilizer consumption fell due to higher international prices and inadequate subsidy rates. Fertilizer consumption is expected to register a 6.6% compound annual growth rate from 2011-12 to 2016-17 to reach 83.8 million tonne, led by complex fertilizers.

Budget Impact
The overall impact is expected to be positive. Fertilizer demand is expected to get a boost from cheaper credit availability to farmers. The government will provide interest subvention to farmers who make timely repayment of loans. Although the government has extended investment-linked benefits, proposed exemption on customs duty on capital equipment and provided viability gap funding for new projects, investment in urea plants is dependent on gas allocation. Cut in basic customs duty on some water-soluble fertilizers may increase their use, resulting in positive impact.

OIL & GAS
State of the Industry
Political unrest in the Middle East pushed up crude prices to $125 a barrel in February 2012. Prices averaged at $113 a barrel between April 2011 and February 2012. Under-recoveries of oil marketing companies more than doubled to Rs 97,300 crore in April-December 2011 from Rs 46,900 crore in the corresponding period of the previous year due to high crude prices, inadequate revision in regulated fuel prices and a weak rupee. This hit companies' profitability.

Budget Impact
The overall impact is expected to be negative. Proposed increase in cess on crude oil production, to Rs 4,500 per tonne from Rs 2,500 per tonne, will increase oil production cost by $5-6 per barrel. Government estimates of oil subsidies for 2011-12 and 2012-13 seem to be conservative. Given mounting under-recoveries, OMCs and upstream public-sector undertakings may have to absorb a higher share of under-recoveries, which will pressurize profits. The government has decided to include oil & gas/ LNG storage facilities and oil & gas pipelines as eligible sectors for viability gap funding, which is marginally positive.

PHARMACEUTICALS
State of the Industry
The Indian pharmaceuticals industry is expected to continue growing at a healthy 16-18% year-on-year to $36-37bn in 2012-13. Exports will be the key growth driver, as players increasingly tap the generics space in regulated markets, and contract manufacturing opportunities for bulk drugs rise rapidly. Domestic formulations market will continue its steady double-digit growth of 14-15%, touching $14bn during the year.

Budget Impact
The impact of the increase in excise duty to 6% from 5% on formulations and to 12% from 10% on bulk drugs is expected to be neutral as these hikes are expected to be passed on to consumers by the companies. The five-year extension of the 200% weighted deduction for in-house R&D expenditure will marginally benefit Indian players as R&D expenditure on an average forms less than 5% of their net sales.

Gains and pains (Source TOI)

The finance minister has taken a pragmatic approach in this year's Union Budget, which, while not taking its eye off the inclusive growth agenda, has taken steps to urgently address the need to fix stretched government finances. Analysts said the changes on the indirect taxes front unveiled on Friday suggested that it is clear that progress was being made on launching the most ambitious tax reform.

Here is a look at what taxpayers, consumers, investors and businesmen are likely to gain and lose from this Budget.

GAIN FOR TAXPAYERS

• I-T exemption limit raised to Rs 2 lakh, 30% tax bracket now at Rs 10L
• Interest up to Rs 10,000 on saving bank account to be exempt from tax
• Deduction of 50% for investments up to Rs 50,000 in equity by new investors with an annual income up to Rs 10 lakh
• Age limit for senior citizens reduced from 65 to 60 for several tax benefits
• Deduction of Rs 5,000 for preventive check-up expenses allowed within health insurance benefit

PAIN FOR TAXPAYERS

• Additional deduction for infra bonds of Rs 20,000 removed
• Income tax officers can now reopen assessments pertaining to foreign assets for up to 16 years instead of the current six years

GAIN FOR CONSUMERS 

• Threshold for payment of service tax on apartment maintenance raised from Rs 3,000/month to Rs 5,000
• No excise on branded silver jewellery
• Duty-free baggage allowance at airports raised by Rs 10,000 to Rs 35,000
• Excise duty on branded readymade garments reduced from 4.6% to 3.7%

PAIN FOR CONSUMERS

• Service tax (cess included) up from 10.3% to 12.36%; excise hiked from 10.3% to 12.36%, from 5.15% to 6.18%, and 1.03% to 2.06%
• Excise duty on cars of 1500cc and above raised to 27%.
• Basic customs duty on imported SUVs worth over $40,000 (3,000cc or more for petrol, 2,500cc or more for diesel) raised from 60% to 75%
• Customs duty on high-purity gold in various forms doubled

GAIN FOR INVESTORS 

• Securities transaction tax on delivery-based deals reduced to 0.1%
• More options for investing in tax-free bonds (like NHAI and Hudco)

PAIN FOR INVESTORS 

• TDS mandatory for sale of immovable property of over Rs 50L in urban areas and Rs 20L in rural areas
• 1% tax to be collected at source by seller for any sale in cash valued over Rs 2L of jewellery, bullion, etc
• TDS for interest from debentures if amount exceeds Rs 5,000
• No tax sops for new life insurance policies with annual premium over 10% of sum assured (currently 20%) excluding loyalty bonus

GAIN FOR BUSINESSMEN 

• Withholding tax on interest on ECBs reduced from 20% to 5% for power, airlines, roads etc for 3 years
• A year's extension for exemption under section 80IA for power firms; also for lower tax on overseas dividend
• Small service provider exemption increased from Rs 10L to Rs 50L

PAIN FOR BUSINESSMEN 

• Alternate Minimum Tax now on partnerships, sole proprietorships too
• All foreign assets must be declared
• Penalty up to 90% on undisclosed income found during search
• I-T Act amended retrospectively to tax 'offshore M&A deals' involing transfer of assets in India. Example: Hutch-Vodafone transaction

What goes up, down (Source TOI)

Pranab Mukherjee, while presenting the Union Budget 2012-2013 proposed to increase duty on large cars and refined gold and remove any duty on import of silver. Here is a look at what goes up and what goes down.

Almost all the manufactured items used in everyday life will become costlier, while luxury cars, gold, eating out at restaurants or hotel accommodation will become even more expensive after a steep hike in tax rates proposed in Budget 2012-13.

WHAT GOES UP

Gold jewellery, ACs, Refrigerator, Luxury cars, Air travel, Telephone bills, Sport Utility Vehicles, Cigarettes, Handrolled beedis, Platinum jewellery, Diamond jewellery, Emerald, Ruby, Branded retail garments, Eating out at restaurants, Hotel accommodation, Hiring a law firm, Toiletries, Cosmetics, Soft-drinks, Steel, Cement.

WHAT GOES DOWN

LCDs and LEDs, Imported bicycles, Housing society charges, LPG, Mobile phones, School education, Iron ore equipment, Medicines for treating cancer and HIV Processed food, Iodised salt, Match boxes, Soya products, Solar power lamps, Cinema and films , LED bulbs, Natural gas, Uranium for generation of electricity, Desktops/Laptops.

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RBI kept interest rate levels unchanged 

India's central bank, the Reserve bank of India (RBI) has decided not to change its key interest rates on Thursday indicating reflecting its concerns about rise of inflation in the country.

RBI retained its repo rate at 8.5 percent which was expected to reduce to boost the slowing economic growth in the country. The cash reserve ratio was also kept unchanged at 4.75 percent.

The decision to keep the rates unchanged was made on account of official data that the inflation measure of India i.e. wholesale-price index, rose 6.95 percent in the month of February.

The benchmark index was recorded at 6.55 percent in January, according to a statement from the union commerce ministry. The inflation as recorded at 9.54 per cent in February 2011. Food inflation was 6.07 per cent in February compared to 0.52 per cent in January.

"Notwithstanding the deceleration in growth, inflation risks remain, which will influence both the timing and magnitude of future rate actions," the RBI said in its mid-quarter review statement.

Finance Minister to present Union Budget today

Finance Minister Pranab Mukherjee will present the Union Budget for the fiscal year 2012-2013 in Parliament on Today.

Today's budget, which is UPA's ninth successive budget, comes against the backdrop of slowing growth and growing fiscal deficit.

It will be interesting note whether Mukherjee will change the income tax slabs and change the saving exemption limit, as the indirect taxes appear to be pinching the common man of the country.

The Chief Economic Adviser to Finance Ministry, Kaushik Basu, had earlier on Thursday forecast a 7.6 percent growth rate, plus or minus 0.25 for the 2012-13 fiscal and said growth will revive slowly due to a drop in investment and savings rates.

Akhilesh Yadav becomes Uttar Pradesh's youngest Chief Minister

Samajwadi Party leader Akhilesh Yadav  to become at 38, the youngest chief minister of India's largest state, Uttar Pradesh.

Along with him, 47 ministers were also sworn into office.They included 9 Cabinet Ministers and 28 Ministers of State. Akhilesh and his party won 224 of the 403 state assembly seats.

Thursday's swearing-in ceremony took place nine days after the Samajwadi Party secured an absolute majority in the seven-phased state assembly elections.

Akhilesh Yadav's name was proposed in a key party meet by senior leader Azam Khan, and was supported by the members of the Samajwadi Party at the legislative board meeting.

Highlights of Economic Survey 2011-12

Union Finance Minister Pranab Mukherjee on Thursday presented the Economic Survey for fiscal 2011-12 in Parliament.

Following are the highlights of the survey:-

Rate of growth estimated to be 6.9 percent. Outlook for growth and stability is promising with real GDP growth expected to pick up to 7.6 percent in 2012-13 and 8.6 percent in 2013-14.

Agriculture and Services sectors continue to perform well. 2.5 % growth in Agro sector forecast. Services sector grows by 9.4 percent, its share in GDP goes up to 59 percent.

Industrial growth pegged at 4-5 percent, expected to improve as economic recovery resumes.

Inflation on WPI was high but showed clear slow down by the year-end; this is likely to spur investment activities leading to positive impact on growth.

WPI food inflation dropped from 20.2 percent in February 2010 to 1.6 percent in January 2012; calibrated steps initiated to rein-in inflation on top priority.

India remains among the fastest growing economies of the world. Country's sovereign credit rating rose by a substantial 2.98 percent in 2007-12.

Fiscal consolidation on track - savings and capital formation expected to rise.

Exports grew @ 40.5 percent in the first half of this fiscal and imports grew by 30.4 percent. Foreign trade performance to remain a key driver of growth. Forex reserves enhanced - covering nearly the entire external debt stock.

Central spending on social services goes up to 18.5 percent this fiscal from 13.4 percent in 2006-07.

Manchester United got what they deserved – Evra

Manchester United left-back Patrice Evra said his side had got what they deserved after being eliminated from the European League by Athletic Bilbao on Thursday.

It was the latest setback in a string of European disappointments for United, who meekly exited the Champions League at the group phase after losing 2-1 at Swiss champions FC Basel in December.

"It has been a bad year in Europe for Manchester United. We have had a difficult season," said Evra, who captained United in Bilbao.

"We have been more focused in the league, I don't know why. You have to be honest and say we don't deserve to be in the Champions League or the Europa League this season."

Beaten 3-1 by Barcelona in last season's Champions League final, United now find them without a major final to look forward to for the first time since the 2001-02 season.

Their only hope of silverware rests with the defence of their Premier League title.

Ivanovic and Sharapova advance into last four

Former champions Ana Ivanovic and Maria Sharapova advanced to the semi-finals of the Indian Wells WTA tournament in sharply contrasting fashion on Thursday.

Serb Ivanovic completed a 6-3 6-4 upset over ailing seventh seed Marion Bartoli of France while Sharapova battled back from a set and break down to beat fellow Russian Maria Kirilenko 3-6 7-5 6-2 after a wildly fluctuating encounter.

Fifteenth-seeded Ivanovic, the 2008 champion, and second seed Sharapova, who triumphed here in 2006, will meet in the last four at the Indian Wells Tennis Garden on Friday.

World number one Victoria Azarenka of Belarus will face 18th-seeded German Angelique Kerber in the other semi-final, both having played their quarter-finals on Wednesday.

In dazzling desert sunshine, Ivanovic broke Bartoli, last year's runner-up, three times before wrapping up her quarter-final win in one hour 17 minutes when her opponent pushed a forehand service return wide.

Bartoli was evaluated by doctors courtside when trailing 1-2 in the second set and said she had succumbed to the viral infection that has already forced eight players to withdraw from Indian Wells.

"I just tried my hardest under the circumstances, tried to not to retire during the match and still show everyone that I could complete the match," said the French woman, who has beaten Ivanovic three times in eight career meetings.

Sharapova, who had been the only player left in the draw yet to drop a set, initially struggled on her backhand and was broken twice in the first six games before losing the opening set to Kirilenko in 44 minutes.

She leveled the match after battling through a tight second set, where Kirilenko was penalized a point for hindrance after tapping her racket on the ground three times, and broke her opponent in the second and fourth games of the third to race 4-0 up.

 It was a tale of two mindsets at the Sher-e-Bangla Stadium on Wednesday. Pakistan was all charged up and desperate to win while a weary Sri Lanka lacked the intensity. 

Pakistan spanks Sri Lanka to storm into the final of Asia Cup

On Wednesday, after being bundled out for 188, Sri Lanka had a glimmer of hope when they reduced Pakistan to 33-3, but Pakistan skipper Misbah-ul-Haq (76 not out off 93 balls) and young Umar Akmal (77 off 72 balls) took charge.

While Misbah was a picture of concentration on a slow track, Akmal looked for the big shots and the runs came at a fair clip. Sri Lanka skipper Jayawardene, in his desperation to take wickets, brought the field in but the bowlers didn't support him.

Earlier, the Sri Lankan innings just couldn't take off. The one, big partnership that the Lankans needed early on never came as Pakistan found an unlikely hero in Aizaz Cheema (4/43).

At 65-4, Pakistan were looking for the kill, but they found a stumbling in Sangakkara (71) and Upul Tharanga (57), who decided to put their heads down and graft.

If India beat Bangladesh on Thursday, fans can look forward to two India-Pakistan games, one on Sunday and Thursday, the day of the final. 

Cognizant rewards employees with 200% variable payout

After growing faster than Indian information technology (IT) industry, Cognizant Technology Solutions Corp has now rewarded its employees by giving out as much as 200% of the variable components of their 2011 salaries. 

"The company has done the repeat of 2010 in rewarding its top performers. The top performers got around 200% of their target bonus while the average bonus given was 150%. The bonuses were on expected lines as the company has been scoring good quarter on quarter," said a Cognizant employee in Chennai on condition of anonymity. 

"Even against the backdrop of a volatile economy, we grew our revenue by 33.3 percent over 2010 and added more than 33,500 professionals to our workforce globally," pointed out Srinivasan who added that Cognizant's employee attrition rate of 10.1% was among the lowest in the industry. 

With the bonus pay out, there is increasing expectation of a good pay hike later this year. 

Going by Cognizant's guidance only $100 million would separate it from Infosys in terms of revenues. Cognizant's revenue forecast of $1.7 billion is now close to Infosys' March quarter guidance of $1.80-1.81 billion. 

Government to auction 16 coal blocks to power companies

The government will auction 16 coal blocks to power producers, giving them the chance to bid for 8,165 million tonnes of reserves, enough to light up a whopping 68,000-mw of power plants for 30 years, government officials said.

The blocks are part of the 54 block with 18,000 million tonnes of reserve, which will soon be offered by the coal ministry to various sectors, including power. The ministry has allocated 25%, each, to steel companies and state mining corporations, a senior government official said.

A little less than 5% has been earmarked for cement and sponge iron units. Two small blocks would be offered to developers for pilot surface gasification projects, he said.

The coal ministry has decided to auction the blocks on upfront payment basis in the first round of competitive bidding. A list of the blocks with information on exploration status, reserves and quality of coal will soon be issued by the coal ministry to invite bids from interested companies.

However, blocks earmarked for power sector will be given to state governments that will award the mines to companies, which quote lowest tariff for electricity supply.

The blocks lie in the coal belts of seven states of Chhattisgarh, Jharkhand, Maharashtra, West Bengal, Orissa, Madhya Pradesh and Andhra Pradesh. Some of the big blocks that could be put on auction are Tentuloi in Orissa with 1,200 million tonnes and Tamla North in West Bengal with 1,800 million tonnes of coal.

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