~Happpy Neww Yeearrr~

Buy Gitanjali Gems
Medium term target: Rs 140
Long term target: Rs 300

Hold Aditya Birla Nuvo

Buyy----

Buy Aditya Birla Nuvo @ Rs. 840.oo
Medium term target @ Rs. 980.00
Long term target @ Rs. 1250.00

~Shoppin Time~

Buy Indian Hotels @ 62

~ Schedule of Classes ~

~ Karma ~

Your freedom is only in the field of action, and not in the field of bringing about the fruits of action. Never take yourself as the cause of bringing about a karma-phala (situation).You have to do your karma and leave god to do his due, if you've done the required hardwork, given your heart and soul to the preparation, you will win the battle.. no matter what happens. What targets you should set for yourself should not be the number of marks scored in exam but the number of chapters/modules completed with excellence.

This is also substantiated by ramayana..
"Jaki Rakhi Bhawna Jaise, Prabhu murath tin dekhi vaisi"The message is clear.. You have to go with the positive attitude that will provide you the required mental strength. On the contrary, the negative attitude or pessimism or the unnecessary fear of failure will deter you to prove your talent and exhibit what you truly possess. It then leads to nervousness and frustration. So following the message conveyed by the great epics.. Go with positive attitude & optimism.. Do your karma religiously.
God is there to protect us, "Have faith in His existence".

"Last 5 days of preparation"

This post is special.. the first to deal with the last revision before exams. The posts are changing with changing times as the exams are getting closer. This 5 day preparation is exclusively designed so as to maintain the complete balance in the study programme and significance of chapters as per the startegic areas mentioned earlier for ACCOUNTANCY JUNE09 PCC EXAM.

Day 1: May' 28
Hire Purchase
Insurance claims
Accounts of NPO
Underwriting
Profit prior to Incorporation
Debentures
Final Statements

Day2 : May 29
Departmental Accounts
Branch Accounts
Self balancing ledgers
Average Due Date/ Account current
AS 1, 6, 10, 11
Liquidation

Day 3: May 30
Investment Accounts
Single Entry System
AS 4, 5, 7, 19
Amalgamation ( AS14) & Internal Recontruction

Day 4: May 31
Partnership - 1
As 2, 9, 12, 13, 16
FFS & CFS
Banking Co. Accounts

Day 5: June 1
Partnership 2
AS 20, 26, 29
Insurance Co. Accounts
Double Accounts System
Accounting in Computerised Env.
Strategic Areas Again

Day 6: June 2
Strategic Areas + Exam

Best of luck!

" Short - Medium - Long " Term

South Indian Bank: BUY

-Comparison-

A common problem faced by students in exam time is of comparion. When we talk to our friends invariably one question comes up from the most desperate student of the group,' Kitna ho gaya yaar" If his preparation is above your expectations(which is always more or less exaggerated), you land yourself in a whirlpool of dilemma, tension....
What can be the reason for this::
A person is good because either he is good or he lacks the courage to be bad.
I know you are good because you are good. So as your inherent nature goes, you tend to see the good things in others without counting on the bad/wrong doings and compare it with your package. This develops a "complex". Sounds discouraging, hard to digest , but need to gulp the facts.
One cannot analyse the exact position of other's preparation. Its something like comparing the ROI of one company with turnover ratio of other, which can give no result.
So the final mantra... " Don't Discuss Studies"
There are a zillion things to learn and talk about, but a few needs deserve a veil such as your wealth, mates, preparation etc. As they say, "Nazar lag jati hai".
So don't be overzealous, to share your preparations with others otherwise it may amount to"Aa Baill mujhe mar"

Word of Caution

The basic objective of giving you the strategic areas is to lay the strong foundation and give you the initial momentum in the exam based on which you can build up the entire scorecard. Certainly in no case it should be viewed as an access to the examination paper. Mind it, I have mentioned the name of the chapters and not the questions. Had it been possible then i would have called all of you few hours before the exam and give you the solution itself. Based on the strategic areas, you can put yorself in a comfy position to score in the range of 40-50 in the first hour, and use the rest for making the best of the opportunity to come to the level of 70-100.

Strategic Areas for FM- PCC June' 09

1. Theory:
Basic Aspects of financial management; profit maxm vs. wealth maxm. ; Functions of a CFO; Methods & Tools of Financial Management; Organisation chart of finance function.
Bridge Finance; Pledge & Hypothecation; GDRs, ADRs & FCCB; Euro Convertible Bonds; Euro Issues; Zero Coupon Bonds; Option Bonds; Double Option Bonds; Inflation Bonds; Floating Rate Bonds; Pre & Post Shipment Finance; Seed Capital Assistance

2. Debtors management + Theory on working capital management from class notes(No.1-18)

3. EBIT Break even point; Leverages; Cost of Capital with CAPM + Arbitrage process and other theorotical areas from the book (on Cost od Capital & Capital Structure)

4. Ratio Analysis ; Funds Flow & Cash Flow Statements ( Book given on the chapter in the Advance A/Cs classes will be sufficient)

5. Capital Rationing; Social Cost Benefit Analysis.
NPV & IRR

Auditing follows...

Costing CA(PCC) June'09 Exam: Strategic Areas deserving special attention

1. Byproducts & Joint products
2. Operating costing
3. Reconciliation of Cost & Financial A/Cs
4. Levels of Materials + Theory from class notes
5. Idle time, Labour Turnover + Theory from class notes
6. Treatment of under/over recovery of overheads + theory from class notes
7. Flexible Budgeting
8. Marginal Costing (Only the class notes will suffice)

FM Follows..

The Human Mind

In Hindu Mythology.. it is well said that the early morning dreams generally come true. Guess WHY??
Is this without a basis?
The definite answer is "NO"
There is a science behind it. Human Body has two minds namely external and internal. External mind is based on which we act and react in normal life e.g. when we study a particular subject, the process of understanding, learning and application is done by our external mind. Internal mind is generally understood as what we say "Subconscious Mind". This functions even when we are sleeping. This you can appreciate by the simple fact that while you are sleeping if a mosquito is disturbing, you just try to push it away for the reason that your internal mind is awakened and instructs you to do so.
It is an established fact that when external mind sleeps, internal mind is then awakened and whatever is there in our external mind that is transmitted to internal mind. In other words, what we are thinking at the time of sleep, that thought remains in process but now it is in our internal mind. Internal mind keeps on processing with the passage of time and this gets fully activated after few hours i.e. in early morning. Since internal mind travels faster than time, we could see the future happening on the same thought by means of early morning dream. This is a science behind what we say that early morning dreams generally come true. Truely speaking it is this science which is practiced and mastered by saints ( which they term as "awakening" ) wherein they successfully instruct their internal mind to travel faster than time and then they predict/ tell future of their subjects/ clients/ disciples/ followers.
Now the million dollar question: How it is linked with us?
This science we can fruitfully apply while chalking out our study program for the day. It is recommended that we should study theory subjects like auditing and law in the night, preferably few hours before sleeping time so that the text studied is being transmitted to the internal mind. It will help you in retaining it for a longer period of time. You can put it in this way that you have given the command "SAVE" to your mechanism. Thereafter it will act as a relay when you will wake up it will be transferred back to your external mind with the cementing effect.
There is another theory substantiating this philosophy. Our efficiency has an inverse relationship with the movement of the sun. When the sun is at peak, in the noon, our efficiency level is at the bottom. After sunset the graph of our efficiency starts rising and it is at the peak at around midnight. Since more efforts and pain are involved while studying , grasping and retaining the theory subjects, they should be studied at the time when our efficiency is at the peak. Practical subjects like accounts, FM stc. are more of repetitive nature and thus at times ater grasping the concept become more mechanical in nature. Therefore, should be studied during the other part of time schedule.
Try this for 7-10 days, Hope you will see improvement, if not wonders, in your efficiency.

Waiting for your comments and queries..

June'09: CA(PCC) Accounts exam : strategic areas which need special attention

Strategic Areas*:
1. Branch Accounts: Independent Branches (Including Foreign Branches)
Stock & Debtors System (Invoice price method)
2. Accounting Standards: 1, 4, 7, 9 19, 20, 26, 29
3. Partnership Accounts: Insolvency
Piecemeal Distribution of Cash
Past adjustments
4. Single Entry
5. Investments Accounts
6. Liquidation
7. Funds Flow & Cash Flow Statements (Only Booklet will suffice)
8. Double Accounts System: Treatment of replacement
9. Banking Co. Accounts: NPAs & their provisioning
Simple questions on P&L A/c
10. Accounting in computerised environment

* Completely based on the trend analysis by the author
Note: 1. Cost Accounting to follow...

"Short- Medium- Long" Term

GE Shipping
GHCL
Shipping Corporation of India

Short to Medium term

Welspun Gujrat : Buy
Gujrat Alkali : Buy

The Day's Updesh

Happy Ram Navmi to all, which asks for a day off for our stock marketers and also for the students, no CA class today. But our blog will go on to serve its clients (niswarthly).
Here comes the Day's Updesh:
0 Up or 100 Down approach, when you start the exam our target should not be attempting a 90-100 marks paper but try score a confirmed 40+ first, second target 50+ and then it reaches out to 100. This is named 0 up approach because we start with 0 in hand reach a comfy 40, a good 50 and then a succssful 60-100. As against 100 down approach where we start aiming a 100 (Aiming high is in genes of a CA student), when we are not able to solve 1 question and we find something less tempting in our way ahead we loose confidence and ruin the exam. In literal sense, you fire with your AK47 at each of the laddoos offerred to you in the exam.
We see a ghost of the waving curtain in dark, its our perception. Mind It!
With this technique just say the given shlok on ram navmi to the ghost.. surely will help
"Jai Ram Ji Ki"

Short to Medium Term BUY

GT Offshore in range of 245-250

IDBI @ 46-47

PNB @ around 400

Market expected to open high at around 1% levels

Mid Day Review

Market is highly indecisive..
Please exercise restraint.. wait & watch

"Happy New Year"

Happy New Financial Year
Events to Watch :
Obama - Manmohan Singh Meet
Elections
Results of Corporate India

Because of these ensuing events, The market is expected to be volatile with alternate bouts of buying and selling. Our opening balance is NIL. At present the policy is to wait and watch. "NO" fresh commitments till 11:30 am. Market to be reviewed after that. Its very difficult to monitor the exit calls so depending upon your risk appetite, you are requested to book profits in the range of 7-20%.

Book Profits in Reliance capital @ 360
Realize profit in all holdings by end of the day
We'll have a good morning tomorrow!!

On Monday, the US markets were marred by the possibility that General Motors and Chrysler may be facing bankruptcy along with renewed concerns that banks may need more federal financing. As a result the markets ended up closing in the red. The Dow closed 254.16 points down (-3.27%) to end the day at 7,522.02. The index nosedived as it opened, and then continued to remain low through the day. The NASDAQ closed 43.40 points down (-2.81%) to finish at 1,501.80.
The negative cues at the US markets had their impact on the European bourses too. The UK’s FTSE closed 135.94 points down (-3.49%), ending at 3,763. The index slid as it opened and remained down through the day. Germany’s DAX closed 214.32 points down (-5.10%), ending trading at 3,989.
As of 8:15 am IST, Asian markets were seeing some marginal gains. Japan’s Nikkei is currently trading 72.75 points higher, up 0.88%. The Hang Seng is currently up 46.63 points (+0.35%).
WTI Brent crude oil was up $0.53 to $48.94 per barrel (+1.09%). Nymex light crude May futures was up $0.76 (+1.57%) to close at $49.17. April COMEX gold futures rose $1.50 (+0.16%) to close at $917.00 per ounce.
The Indian Rupee (Rs.) fell against the dollar by Rs. 0.32 and is currently trading at Rs. 50.90/92 against the greenback.

"Returning to Pavilion"

Returning to pavilion here actually infers "WHEN" to exit the stock. This highly depends on the personal objectives of the investor. Few of them I have illustrated here in the pic.

Please judge by yourself as this blog is by market movements and not by client expectations. However, for suggestions you can mail me or give a call but reply is subject to availability.

"For the day"

Market expected to open reasonably low
Accumulate Reliance Capital on Dips , start at around 340-
Hold Aditya Birla Nuvo, Do not book profits on dips
Hold IDFC and Praj Ind., Do not book profits on dips
Rest to follow...

Issued in Public Interest

This piece is for the theory subjects... "storytelling" style!!
Once upon a time, there were two friends, Anku & Banku. They wanted to have aloo parantha. Anku wanted to go to a restaurant but Banku preferred a roadside dhaba. Both had their arguments. One had curd, pickle & ambience and other was popular for its low price and good taste. Banku won, they tried dhaba. And the next morning Anku couldnt complain more for the visit to dhaba.

On the same lines...

They both gave CA(PCC) Exam that year. Amazingly, they've always been quite similar in studies. Always the same negligible difference in marks. But when it came to CA, ek galti Banku ko le doobi. I repeat "EK GALTI". He opted for unofficial notes from some misc person. for theory subjects based on the most credible grapevine (atleast Banku thought it to be). Popularly quoted in Grapevine ," Abe main to usse pad raha hun... woh dekh.. its awesommme, Short & concise but fir bhi full coverage; isse pad ke aaram se 60 on 100; no tensions; sab yahi padte hai " etc.

So try learn from Banku's GALTI and use ICAI recommended stuff. Dont go for the taste but quality. Its safe and will fetch you marks, real time.
*Issued in Public Interest

Book partial profits in Aditya Birla Nuvo; First target hit at 459; Yield @27.5% in 10 days
Book profits in JSW Steel ; Target of 224 achieved
Book partial profits in RCom @ 172
IDFC :: Cheers!

"Long Term"

Accumulate IDFC on dips
Initial Target Rs 70
3 month expected return @ 40%

Book Profits in HDFC Bank @ 990+
HCC @ 40+
Axis bank @ 400 +
Punj Lloyd @ 84+
Bajaj Hindustan @ 46+
Reliance Capital @ 360+
JSW @ 204+
Book Profits @ Tata Steel @198
Book Profits in TCS & Infy
Continue to "Hold" : Aditya Birla Nuvo & Reliance Communications

With the given technique, you can easily score a safe 64 even after you've given your best in messing up the paper. With issues in almost 50% of the paper, you can still score decent marks. However we cannot just go without taking the conservative technique, add 10% time and deduct 10% marks. With this you you've taken 132 min to score 43.5 mks. This leaves you with almost 50 min for the last two questions under the conservative estimate.

If you notice one thing here, the first hour of the exam is very crucial, where the feedback suggests that its real difficult to cross 40 in Costin FM exam, with this techique you are standing on almost 28 after first hour, Feels good, Han!!

"Long Term"

Reliance Communication: Buy
Praj industries: Buy @ 51.50

~One for the Accountancy Exam~

So, am back with another technique from my kitty. This one is more specific, it deals with time management. Although it sounds clichéd, but “Time Management” can actually bring the d;ifference of a rank or even passing for a few. I’d like you to attempt the questions in the given sequence
1. Q5 of the exam:
The question requires an attempt of 8 out of 10 questions. The time allowed is (8*3) 24 minutes. Going with the preparation, majorly, 3 scenarios arise: Aggressive, Normal & Conservative.
With the aggressive estimate, we hit the target full on i.e. 100% or 16 mks. With the Normal estimate we take a reasonable score of 10 mks.

2. Q6 of the exam:
This question needs an attempt of 4/6 questions. We take 20 min for this i.e. 5 min per question. An aggressive estimate of 16 marks and 12 mks, a normal estimation.

3. Q2 of the exam:
In a professional exam like CA, the examiners are not really in a mood of favoring students with an easily earned share of pie so they give their best in preparing a few questions where the best is tested. Here we go head on with the best effort of the examiner: a 16 mark question. This question deserves a good long 30 minutes of the total time. We’d like to believe that we are best in business.. so our aggressive bet: 16 mks. Taking a normal estimate, we give a fair 12 to our effort.

4. Q3 of the exam:
Here we get two 8 mark questions, worth 16 marks. Take 20 min for each of this. The aggressive scoring: 16 marks and Normal: 12 marks.

Total Score Card: 114 min(time taken) - 64 mks(total attempt) – 46(normal scoring estimate)
If you’ve noticed, I have not take the conservative estimate as yet.. here it is:
ADD 10% to time and DEDUCT 10% from marks
Conservative Scorecard: 125 min(Time Taken) – 41(Marks Achieved)
Now we are left with 1 hr. and 2 questions worth 36 marks in hand. It seems more of an opportunity than challenge now. As they say “Glass half empty or half full” it is for you to decide.
This technique blended with 6-5-4-3 would ensure ‘ZERO’ flunks. Another surety from my side that the questions given in the exam wouldn’t just be a best fit for this technique but also for my class notes. All the questions we will or already have practiced would suffice the preparation. Hard to believe, but it’s a fact. You might think, it’s quite a promotion of my classes and blog but hey…who cares, Its my blog and my students. Cheers!

"6-5-4-3"

I’d like to share one of my theories with all my students. The theory is named “6-5-4-3”. Virtually, it looks like my answer to Madhuri’s- ek do teen…. But believe me it can do wonders for your CA examination. It is simple yet maximum students don’t understand the interpretation and enjoy their flunks. It goes like this:
“We get 6 questions in examination paper, we have to attempt 5, correct 4 in max of 3 hrs.
This theory is no way a limitation to the rank holders of my class instead this is as I call it a “Brahmastra or the Last resort” if by any chance your preparation doesn’t click. This is a professional exam.. and with this you are prepared for the worst.

"Quick Picks"

Book Partial Profits

For the Readers

Today I give a new direction to my writing career (which included only the assignments for my students till date) with this blog. To start with I’d like to clarify one thing here, that any post here is (as they say),“subject to market risk” . Market Risk here can be defined as any deviation in my post from the market as in the blogger can in no circumstances be blamed.
The sole purpose with this blog is to share my thoughts on any issue under the sun, the scope of which will essentially cover the technicalities involved in CA, Stock Market, Economics, Politics…

"Quick Picks"

HDFC Bank- Buy@850

"Mid Term"

Mundra Ports- Buy @ 302
Book Profits in Infy
JSW Steel- Buy@185

"Mid Term"

Aditya Birla Nuvo- Buy @ 360
Bajaj Hindustan- Buy @41.50
Axis Bank- Buy @ 330
Tata Steel- Buy @ 165

"Quick Picks"

HCC- Buy @ 31.50
Punj Lloyd- Buy @ 75
Reliance Capital- Buy @310

Welcome All!