Article Writing Contest: Details

The topics are

1. Fiscal stimulus-catalyst or road block
BANKRUPTCY, CREDIT CRUNCH, DEFLATION, FORECLOSURES and UNEMPLOYMENT

Recession has seen it all. The stimulus packages provided by various governments were deemed to be a last effort to support their respective banking structure and win back the trust of investors. Has the stimulus package been too stimulative or has it helped to put a brake on economy decline?

OR

2. Inflation or growth

Are inflation and growth inversely associated, directly associated or not associated at all? Does inflation harm economic growth or do they form a strong positive relationship? Is it better to bear inflation than risk growth?

Do inflation and growth impact each other?



The event is open for all 2nd yr and all 1st yr Finomenon members

The last date to send your entries is 9th Nov, 23:59:59 hrs.

Rules and Regulations:

1. The event is open for all 2^nd yr students and all 1^st yr Finomenon members.

2. The word limit for the article is 1500 words (750 For the topic and 750 Against the topic)

3. You have to choose any one topic and write both the views on it. (FOR AND AGAINST)

For e.g. Fiscal Stimulus : Your entry should have one part containing arguments for Fiscal Stimulus being a “Catalyst” and the other part containing arguments for “Roadblock”

4. The entries are required to be submitted in MS Word/PDF format, with 1.5 line spacing and Times New Roman font, font 12.

5. The articles should represent original work and plagiarism is highly discouraged.

6. Each article should have a cover page mentioning the name of the person, respective email id and the contact number.

7. The name of the person should not appear anywhere in the body of the paper.

8. There is no prior registration for this event. The entries adhering to the deadline will only be considered.

9. The decisions of the organizers of the contest and the panel of judges will be final.

10. The subject line of the mail and the file name should be in the following format: finomenon__

11. The contestants are required to send their entry to the following email id: finomenon.batch@gmail.com latest by 23:59:59 on 9^th Nov, 2009.

12. For any further queries, please contact

Anubhav jain anubh86@gmail.com 9766650868

Shalabh Aggarwal shalabh.aggarwal@gmail.com 9930765320

Company Snapshot i3 Consulting

About i3

i3 consulting is a business consulting firm that works with organizations to improve their performance on a sustainable basis. Founded by former McKinsey & Company employees, i3 consulting works across multiple functions, industries and geographies to generate high-impact analytics driven client solutions. The core team comprises of former Mckinsey & Co and E-value serve employees with rich experience in consulting, analytics and business research.

What We Offer

We work closely with our clients to understand the core issues they are facing and to add true value to their business. Our cross functional expertise across analytics and business research coupled with strong industry knowledge helps us deliver actionable and high impact solutions.

Client Services

Risk Management

Marketing Analytics

Finance

Strategy

Risk management

Risk Management is at the core of any organization. It has been a big differentiator between high performing and low performing organizations. Success of any risk management system lies in understanding the riskiness of the portfolio, its sources and then managing risk accordingly. Risk Management does not necessarily mean risk avoidance but means taking risks that organizations can handle effectively and where commensurate rewards are available for the risks taken.

At i3 Consulting, our Risk professionals will help organizations in three broad areas:

a) Customer life cycle management - Organizations face challenges in measuring risk of their customers throughout their life cycle. i3 Consulting has a team of professionals who work closely with the organizations to not only assess risk of customers but also develop sound acquisition and account management.

· Customer Acquisition (Rating models/credit score for customers/rating models for facility/pricing models/underwriting models/forecasted expected NPV of applicant)

· Account Management (Behaviour rating model/facility renewal rating)

· Collections( Behavioural segmentation of customers/risk segmentation of customers/predict recovery amount/segment debt consolidators)

b) Corporate strategies - One of the biggest challenges for corporates is to take decision under uncertainty. They are also faced with showing consistent business results and removing volatility from the cash flows. i3 Consulting too does not have the crystal ball that can remove uncertainty, however the team can work closely with the corporates to identify sources of uncertainty and also assess the potential outcome based on different decision making scenarios to make decision making more informed.

c) Reporting and dashboard creation - Any sound risk management system can work only if is tracked and monitored well. Key to achieving this is creating a Management Information System that captures all the necessary components from Management's perspective. Majority of the banks have a well defined MIS system and huge IT infrastructure to support it. Limitation in existing systems is lack of right metrices and framework that can ensure integrated view of the whole portfolio. i3 Consulting has a team of experienced professionals who specialize in conducting diagnostics of existing systems and can design and maintain MIS on an ongoing basis.

· Risk management dashboards

· Strategy tracking dashboards

· Campaign management dashboards

· Integrated portfolio view

Marketing Analytics

Innovative marketing actions result from great insights into the market and the customers. i3 Consulting can help clients understand the market and their customers better for developing the right market strategy.

At i3 Consulting, our specialized group of people help clients in integrating market insights, competitor actions and customer needs to:

· Create a differentiated brand strategy

· Identify opportunities to expand into new markets

· More targeted market communication strategy

· Manage product portfolios

· Develop pricing and promotions strategy

i3 Consulting delivers to its clients using the following tools:

a) Customer insights - For brand success of any company it is imperative to understand the customers. Our experienced professionals at i3 Consulting can help clients identify what are the different kind of customers that exist in the market or within the company and how to best understand their behaviour and preferences. Identifying and understanding the existing segment can help clients:

· Customize its offerings to it’s customers

· Cross sell its products

· Optimize its strategies for best results

b) Marketing Segmentation - For a client in a specific industry it is interesting to see where it is positioned in the industry at large and specifically to identify and understand it’s peer set. This helps a company to build on it’s strength and work on it’s weakness appropriately. The key to this lies in understanding your market . A correct assessment of the market gives the client a better picture of what are the different categories of players within its industry as well as which companies fall in it’s peer set. A detailed profiling of the peers and competitors can then enable the client to evaluate where it is gaining or losing compared to others

c) Tools and models to support marketing actions - i3 Consulting can also help clients analyze their performance or take strategic decision by creating user friendly models. These models can be custom created depending on the need and the business problem. The following are examples of models that can benefit a company:

· Allocation model: Retail chains often face problem in allocating their resources and deciding on the correct level of inventory. An allocation model can help them optimize allocation and decide the ideal level of inventory

· Promotional effectiveness model: A promotional effectiveness model can help clients analyze the performance of products on promotions as well as understand cannibalization effect of promotions. This helps in optimizing the products for promotion as well as plan better for future promotional campaigns.

Finance

i3 Consulting provides a broad spectrum of services to provide complete financial management Financial analysis- Quantitative analysis of accounts and financial statements, identify trends and suggest improvements Evaluate key performance metrics like EBIT, ROI and benchmark it with peers

· Capital Market Performance- Event analysis and its impact on capital markets Shareholder value management Conduct technical analysis, volatility analysis, compute risk adjusted returns etc. and suggest measures for improvement

· Valuation- Valuations using several methods as a key to provide more accurate estimate. E.g.: Adjusted market value, discounted cash flow method, comparable multiple analyses Valuations of unlisted companies and businesses

· Investment decision analysis- Preparing of business plans and financial modelling of projections Evaluation of ROIC, WACC, IRR and NPV Exit strategy reviews

· Financial Dashboard - A powerful MIS which includes key cost and revenue metrics Analysis across periods and regions for the purpose of benchmarking Automated process for enhanced accuracy and efficiency

· Primary and secondary research - Collecting and compiling data from secondary sources for the purpose of analysis Conduct primary research in cases where data from secondary sources is not available

Strategy

Corporate Strategy - i3 Consulting can help design your corporate strategy to effectively manage your portfolio of initiatives. We will work with you to shape your company’s direction by identifying synergies within the system and evaluating market opportunities.

Business Unit Strategy - i3 Consulting can diagnose the health of your business unit and recommend operational improvement measures to significantly increase shareholder value. We will provide you with world-class business insights, analytical tools and frameworks and a concrete road-map to help you make the right decisions at the right time.

Growth Strategy - At a time where growth is the new mantra for business success, i3 Consulting prides itself in being able to offer a large repertoire of skills and knowledge to help you develop a strong growth strategy.

Company Snapshot - Religare

Overview

A diversified financial services group with a pan-India presence and presence in multiple international locations, Religare Enterprises Limited ("REL") offers a comprehensive suite of customer-focused financial products and services targeted at retail investors, high net worth individuals and corporate and institutional clients.

With a view to expand and diversify, REL operates in the life insurance space under 'Aegon Religare Life Insurance Company Limited' and has launched India's first wealth management joint venture under the brand name 'Religare Macquarie Private Wealth'.

REL, through its subsidiaries, has launched India's first holistic arts initiative - with a gallery - as well as the first SEBI approved film fund, which is an initiative towards innovation and spotting new opportunities for creation and maximization of wealth for investors.

REL operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498* cities and towns controlling 1,837* business locations all over India.

To make a mark in the global arena, REL acquired UK-based Hichens, Harrison & Co. in 2008 which was subsequently re-named as Religare Hichens Harrison PLC ("RHH"). Hichens, Harrison & Co. was incorporated in London in the year 1803 and is believed to be one of the oldest firms of stockbrokers in the City of London.

Pursuant to expansion of REL's business, the company has grown from largely an equity trading company into a diversified financial services company. With the addition of RHH the REL group now operates out of multiple global locations, other than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore).

Group Structure

For the detailed report follow the following link

http://www.religare.in/income-statement.asp?reporttype=QTR

Other Initiatives by Religare

Vistaar

Religare Enterprises Limited and Vistaar Entertainment Ventures Private Limited launched India´s first ever film fund - Vistaar Religare Film Fund (VRFF) for the Film/Media business.

Femme Power

Religare has created an alternative career path, keeping in mind the needs, wants and desires of today´s woman. Femme Power provides an opportunity for the contemporary Indian woman who strives to strike a balance between work and family life. Femme Power is an independent financial advisory platform managed by women, for women.

The primary focus of Femme Power is to provide a single point of contact from which women across India can access their financial investments and transactions, in addition to providing timely lifestyle tips. Femme Power will serve as a catalyst to address concerns of women about financial security, investment knowledge, health & nutrition, in addition to a range of other issues.

Bancinvest

Religare is also aggressively forging relationships with large private and public sector banks to offer online/ offline equities and portfolio management services through its "BANCINVEST" channel to cater to a broader spectrum of investors nationally.

Some of the key strategic partnerships that are already in place are with entities such as Karur Vyas, IndusInd Bank, Tamilnad Mercantile Bank Ltd, Corporation Bank, Bank of Rajasthan, Vijay Co-operative Bank Ltd, etc.

Management Team

• Mr. Sunil Godhwani
  CEO & Managing Director, Religare Enterprises Limited
• Mr. Shachindra Nath
  Group Chief Operating Officer, Religare Enterprises Limited
• Mr. Anil Saxena
  Group Chief Finance Officer, Religare Enterprises Limited

Summers Porcess Company Snap Shot - PATERNOSTER

Introduction:

Paternoster is a regulated insurance company that takes on the risks associated with companies’ final salary/defined benefit pension schemes and assumes the responsibility for paying their pensioners into the future.

Paternoster was set up in 2005 by Mark Wood who was previously Chief Executive of Prudential (UK and Europe). We are based in London and Mumbai and have over 100 employees.

Key takeaway points:

It was ranked in the Financial Times 50 Best Workplaces in the UK.

It has a 15% share of the bulk annuity market in the United Kingdom.

Awarded for the design of an FSA approved National Average Earnings Index (NAEI) hedge in 2007.

Important Personnel:

Mark Wood - Deputy Chairman

V. Balamurugan - Chief Executive Officer (India)

CONCEPTS:

In the UK, defined benefit pension schemes were traditionally set up by employers who wanted to ensure that their employees were able to earn a pension that would allow them to retire with enough income to maintain their standard of living. Employers set these schemes up voluntarily and created pensions trusts to hold the assets against the promises made.

Nowadays many employers and trustees are looking to insurers such as Paternoster to take over some or all of the liabilities associated with their pension schemes. This can take the format of a buy-in/buy-out or longevity hedge.

A bulk annuity policy (buy-in)

A bulk annuity policy insures the pension scheme in part or in its entirety. Some or all of the pension scheme assets transfer to the insurer, who then provides an amount to the trustees on agreed dates equal to the value of the pension payments due. In other words, the insurer is responsible for giving the trustees the income they need to pay the pensions. Depending on whether trustees also select the insurer to carry out their scheme administration means that scheme members will either continue to receive communications and/or payments from their current scheme administrators or direct from the insurer. Once the contract between the insurer and the trustees has been agreed the scheme members’ benefits will stay the same, including for deferred members, the options available to them (e.g. early retirement or transfer out of the scheme).

Individual annuity policies (buy-out)

The issuance of individual policies directly to scheme members usually takes place towards the end of the process of winding up a pension scheme. Once individual policies have been issued the scheme members’ pension benefits are insured directly with an insurer, members are no longer a member of the original scheme and the liabilities no longer reside on the sponsoring employers’ balance sheet. Where the member receiving the policy is a deferred scheme member then their policy entitles them to a ‘deferred annuity’. This means that they will receive an income directly from the insurer when they retire. The amount that they will get will be based on their pension benefit entitlement at the date they left their company pension scheme. Pensioners with an individual policy are entitled to an annuity.

Longevity hedge

A defined benefit pension scheme is exposed to a number of risks which are ultimately borne by the sponsoring employer. These risks include investment, inflation, interest rates and longevity risk. Trustees and sponsors have, for a number of years, had solutions available to them to assist in the management of inflation, interest and investment risk. Recent developments have seen the introduction of longevity hedges. A longevity hedge sees the insurer prescribe a set of payments to be made by the pension scheme which represent the expected cash flows to the scheme membership. If over time payments to members exceed the prescribed payments then the insurer makes good any difference. If payments are less than as prescribed the scheme pays the insurance company the difference between the actual payment and the prescribed payments.

The hedge offers the ability to convert the policy to bulk annuity policy at a later date.

Advantages for scheme members

There are several advantages of transferring to an insurer for scheme members:

- they are no longer dependant on the ability (or otherwise) of the company to fund the liabilities (i.e. pay their pensions)

- the insurer will understand pension risks better and therefore be able to manage the pension promises more efficiently and effectively

- the promise to pay pensions is supported by prudent reserving, solvency capital, a conservative investment strategy and a regulatory framework overseen by the Financial Services Authority.

A pension scheme with a corporate sponsor has no such protections or oversights.

Summer Process - Company SnapShot ICICI Prudential

Overview

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

Company began its operations in December 2000. Today, its nation-wide team comprises of 2074 branches (inclusive of 1,116 micro-offices), over 225,000 advisors; and 7 bancassurance partners.

Achievements:

· ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.

· For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.

Our vision:

To be the dominant Life, Health and Pensions player built on trust by world-class people and service.

This we hope to achieve by:

· Understanding the needs of customers and offering them superior products and service

· Leveraging technology to service customers quickly, efficiently and conveniently

· Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders

· Providing an enabling environment to foster growth and learning for our employees

· And above all, building transparency in all our dealings

Our values :

Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country with consolidated total assets of about US$ 95 billion as of March 31, 2009. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 19 countries, including India.

Prudential Plc

Established in London in 1848, Prudential plc is a leading internal retail financial services group with significant operations in Asia, the US and the UK. Prudential has been writing protection and savings insurance for over 160 years, and today has more than 21 million customers worldwide and over 249 billion in assets under management (as of December 31, 2008). In Asia, Prudential is the leading Europe-based life insurer with operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-japan, with ?36.8 billion funds under management (as of December 31, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

Products:

· Insurance Solutions for Individuals

· Savings & Wealth Creation Solutions

· Protection Solutions

· Child Plans

· Retirement Solutions

· Health Solutions

· Group Insurance Solutions

· Flexible Rider Options