The note on Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds to be issued by “Housing & Urban development Corporation Ltd” (HUDCO).

The Company has filed Draft Shelf Prospectus with SEBI on 11th January 2012. Issue is expected to be launch by end Jan. ie 27th Jan 2012.

We will update you about the exact issue dates and coupon rate once tranche Prospectus is filed.

The issue will be open for NRI investors on repatriable as well as non-repatriable basis.

Being rated AA+ the interest rates,commercials will be better off as compared to IRFC Tax Free Issue which will be open on more or less similar timelines.

Housing and Urban Development Corporation Limited Profile Snippets
Housing and Urban Development Corporation Limited (HUDCO) was established in 1970 as a wholly owned Government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. HUDCO’s sustained performance and profitability earned them Mini-Ratna status conferred in FY 05. HUDCO had sanctioned loans of Rs. 37,464 cr for housing and Rs. 84,906 cr for urban infrastructure on a cumulative basis up to Dec 2011.

Salient features of the bond issue

• The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible Debentures and the interest on the Bonds will not form part of the total income.
• In case of over-subscription; allotment shall be on first cum first serve basis up to the date falling 1 day prior to the date of over-subscription and on proportionate basis on the date of over-subscription, in the manner specified in the Tranche Prospectus.
• CARE has assigned a rating of ‘CARE AA+’ to the Bonds. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Fitch has assigned a rating of ‘Fitch AA+ (ind)’ to the Bonds.
• The bonds are secured by way of floating first pari passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue. The security cover will be at least 100% of the outstanding Bonds at any point in time.
• HUDCO shall pay [xx] % p.a. for Tranche 1 Bonds as interest on the Application amount retained.HUDCO shall also pay [xx]% p.a. on refund of application amount. Such interest shall be paid along with the monies liable to be refunded.
• Bonds will be issued in Dematerialised form or physical form as specified by an Applicant in the Application Form. The bonds will be listed on NSE and BSE both and will be available in Demat form facilitating trading of these bonds.
• Investors can pledge or hypothecate these bonds to avail loans.

Financial Summary

Business Overview
The business is broadly classified into the following two business platforms:

• Housing finance:  HUDCO finances dwelling units in the urban and the rural areas. HUDCO has sanctioned Housing Finance of Rs 36,110 cr (30.65% of total financing activities as on March 31, 2011).  
• Urban infrastructure finance:  HUDCO finances projects relating to social infrastructure and area development, water supply, sewerage and drainage, roads and transport, power, emerging sector, commercial infrastructure and others. HUDCO has sanctioned Urban Infrastructure Finance to the tune of Rs 81,691 cr (69.33% of total financing activities as on March 31, 2011).
• In addition, HUDCO also provide consultancy services in the field of urban and regional planning, design and development, environmental engineering, social development, government programmes and others.

Operational and Financial Performance

Strengths

• Strong financial position: HUDCO has been operating its financing business profitably since inception.
• Rich Parentage: Their business is funded through equity from the GoI & market borrowings. Relationship with the GoI provides them access to lower cost funding & enable them to source foreign currency loans.
• Pan-India presence:- HUDCO has extended finance for housing and urban infrastructure projects to customers in 33 states and union territories covering around 1,800 cities and towns.
• Established track record:- HUDCO has 41-years of experience in the housing financing market. As on Dec 31, 2011, the Company had provided finance for over 15 mn dwelling units and over 1,600 urban infrastructure projects in India.
• Wide spectrum of consultancy services:- As part of consultancy services, up to Dec 31 2011, they had appraised 1,236 projects with a project cost of Rs 27,515.34 cr under JNNURM.
• ‘CARE AAA (SO)’ rating for HUDCO’s unsecured bonds: – CARE has assigned a rating of ‘CARE AAA (SO)’ to the unsecured bonds issued by HUDCO aggregating to Rs 1,036.4 cr as on Oct 10, 2011. The rating of ‘CARE AAA (SO)’ was primarily based on credit enhancement in the form of ‘Letter of Comfort’ from the then Ministry of Urban Employment and Poverty Alleviation.
• Loans backed by Govt. guarantees: Most of HUDCO’s loans to various state entities are secured by guarantees from the relevant state governments to repay outstanding debt facilities or mortgage of properties with a minimum security cover of 125% of the total loan amount. Further, loans to entities in the private sector are secured by mortgages of the respective project properties providing a minimum security cover of 150% of the total loan amount, personal guarantees and contributions by promoters, as deemed fit by HUDCO.

Investment Options

*Allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis
 
Tax Benefits

1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;
2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders;
3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.Under section 112 of the I.T. Act, capital gains arising on the transfer of long term capital assets being listed securities are subject to tax at the rate of 20% of capital gains calculated after reducing indexed cost of acquisition or 10% of capital gains without indexation of the cost of acquisition;
4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.

 Financial Summary

Dear All,

Please note that Tree House Education & Accessories Limited IPO  will opens for subscription from Wednesday i.e 10th August, 2011  and  closes on Friday ,12th August, 2011

Tree House Education & Accessories Limited  -Issue Details

Issue Program: -

• Issue Opens on – Wednesday ,  10th August, 2011
• Issue Closes on – Friday, 12th August, 2011

Price Band: –                 Rs. 135/- to Rs. 153/-
 
Retail applicants are eligible for a discount of Rs 6/-.

BID lot:-                          40 Equity Shares & in multiples there of

India – Victim of collateral damage again!

S&P downgrades US credit rating

In a now historical move, global credit ratings agency, Standard & Poor (S&P), downgraded the US credit rating by a notch from AAA to AA+ just a few days after two other global credit ratings agencies, Fitch and Moody’s had affirmed the US credit rating at AAA but with a warning of a downgrade possibility in the future if the US deficit does not come under control.

S&P, however, has taken a tougher stance as is reflected in the statement released by the agency, which read, “The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”

Implications for the US

A ratings downgrade would typically lead to an increase in borrowing costs for the country, as well as for its corporates and the consumers. Thus, this event would not only add to the expenditure bill of the US government and put pressure on the deficit of the country, which is already facing debt problems, but would also affect the spending pattern of US consumers, which would ultimately be reflected in the form of slower growth of the US GDP.

Moreover, more than this event itself, it is the timing of the event that could create some problems for the US as the economic recovery was already in question (with a certain faction of the market even predicting a recession soon), and this move would only increase the challenges for the government to prevent another recession.

However, it seems unlikely that based on this event, the world would take a harsh view towards the US immediately in the near-term as is seemingly evident from the fact that major economies like Japan, China and Australia have already affirmed their faith in US treasuries despite the downgrade. Moreover, it needs to be borne in mind that two other global ratings agencies, Fitch and Moody’s, have maintained their AAA rating though with a negative watch.

Implications for India

As is well known, India is a domestic consumption story built around its 1.2 billion people. Exports form 15-20% of the country’s GDP and within this too; the Middle East and other Asian nations are important contributors with less than 50% of exports being contributed by the US and the European Union. Thus, the impact of a US slowdown is expected to be limited and temporary in nature on the Indian economy. To put this in perspective, post the sub-prime crisis in 2008, while India’s GDP was affected for a couple of quarters in 2HFY2009 wherein the quarterly GDP growth went below the 6% mark, it bounced back equally sharply and within the next two quarters it was back above the 8% growth mark.

Further, now in the backdrop of this US event and interest rates in India at a decade high, a silver lining is that it may force the RBI to re-think its strategy of raising interest rates further, if over the next few days/weeks visible signs emerge that the US growth is in further jeopardy and consequently India’s growth could get affected to a certain extent in the short-term. Note, any pause in interest rate hike by the RBI will be a huge relief to the market and a big positive for the Indian economy. Further, relatively, India’s resilience and economic strength in a weakening global environment will get visibly highlighted in the years to come and will lead to some shift in the global investment pattern in favour of India.

Implications for the Indian stock market

Akin to 2008, wherein India was not a party to the sub-prime crisis, but was affected because it was financially integrated with the world, this time too, some repercussions of this event could be felt in India too, especially on the FDI and FII fronts as US is an important source of liquidity.

Thus, considering the FII inflow angle, the Indian stock market may witness some correction over the next few days/weeks as jittery FIIs turn risk averse. However, the extent of nervousness is debatable as the possibility of a US credit downgrade was being built into the global markets as is evident from the 5-10% witnessed across equity markets this week, especially in the US and Europe. Moreover, even in the past, while Indian stockmarkets have corrected sharply over short periods of time because of the high dependence on FII flows, the recovery has been equally swift. While historical trends are no guarantee of replications in the future, it is important to bear in mind the value proposition that Indian equities offer.

Notably, while historically India Inc. has registered a Net Profit CAGR of over 15%, even if we assume that the growth over the next couple of years would be curtailed, still, at the current level of 17,300 the Sensex is trading at about 13x FY2013E EPS, which is below its historical valuation of about 15x. Moreover, every correction will only make Indian equities more attractive for medium-to-long-term investors. Thus, one must make selective investments into Indian equities and considering the volatile times prevalent, a systematic investment approach is all the more advisable.

Introduction – Gold has shown a powerful rally since October 2008’s lows of $681 per ounce, and certainly one could argue that a correction would vicious sooner or later. However, the fundamentals for Gold are only getting stronger as US inflation is climbing above 8.5% real rate and interest rates continuing to drop. This is creating a “negative” real interest rate environment amidst a continuing weaker US dollar. Besides Debt Turmoil of US and Defaulting countries are certain to surge up after Greece, Portugal now Italy, Spain and the list goes on. Hence it is hard fundamentally to argue against Gold at this time, creating difficulty in forecasting the intermediate highs and lows. With that said, assuming QE3 or some form takes place soon then our projections of Gold to touch the new high of $1800 is quite likely to be hit this year itself before we can look for any genuine correction in the precious metals.

You can click here for more Detail.

Dear All,

India Infoline Investment Services Limited (IIISL) is a downstream subsidiary of India Infoline Ltd and has holdings in India Infoline Housing Finance Ltd (license received in 2009), Moneyline Credit Ltd. (an NBFC) & India Infoline Distribution Co. Ltd.

IIISL is coming up with a NCD (Non Convertible Debenture) issue on 4th Aug 2011 and issue closes on 12th Aug 2011 The coupon is 11.70%-11.90% depending upon series (1, 2 & 3) selected.

The base issue size is Rs 375 Crore with a greenshoe option of Rs 375 Crore making the Issue size to be Rs 750 Crores out of which 40% is reserved for the Retail Category.

The Issue is Rated AA- by CARE and AA-/Stable by ICRA indicating stable outlook.

There is a 40 month premium on redemption option in Series 2 (cumulative option) which is fairly attractive considering the fact that the issue is going to be listed on NSE/BSE and hence offers better tax adjusted returns (Gains in listed NCDs for a holding period of more than 12 months are treated as Long term capital gains).

Given the attractive yields and current state of equity markets the issue is likely to be oversubscribed in first 2-3 days. Request planning in advance for the same.

Online Applications:
Online option for existing clients will be made available; wherein client can place orders online using the Insta plus Login.

Attached product note

Dear Investor,
Below mentioned are the links of the Annual Report 2010-2011, for the various schemes of Reliance Mutual Fund.
Please click on the link to download the Annual report of the respective scheme.

With Best Wishes
Reliance Mutual Fund

1. Reliance Growth Fund
2. Reliance Vision Fund
3. Reliance Regular Saving Fund – Equity Plan
4. Reliance Tax Saver (ELSS) Fund
5. Reliance Long Term Equity Fund
6. Reliance Diversified Power Sector Fund
7. Reliance Equity Advantage Fund
8. Reliance Equity Fund
9. Reliance Equity Opportunities Fund
10. Reliance Infrastructure Fund
11. Reliance Natural Resources Fund
12. Reliance Monthly income Plan
13. Consolidated Equity Scheme
14. Condolidated Debt Scheme

Dear All,
Please note that L&T Finance Holdings Limited IPO will open for subscription from Wednesday ie 27th July, 2011  and  closes on Friday ,29th July, 2011

L&T Finance Holdings Limited -Issue Details

Issue Program: –             Issue Opens on – Wednesday ,  27th July, 2011
Issue Closes on :–           Friday, 29th July, 2011

Price Band: –                  Rs. 51/- to Rs. 59/-

BID lot:-                          100 Equity Shares & in multiples thereof

Clients can  apply online through www.rsec.co.in

This is heads-up.  Some details below. Wait for more….

• Large IPO – upwards of 1500 crs – largest for this year till date.
• 3 weeks back, pre-IPO placement of 330 crs took place @ 55/a share to US PE Capital Interest.
• IPO period – July 27th – 29th
• IPO band will be known on Monday, July 25th

Please keep  updated and ready to apply on this one.

Dear All,
We are pleased to announce the 15 Days Bonanza offer for the Shriram Unnati Fixed Deposits.

The scheme is valid for 15 Days and your client can earn interest up to 13.72% for 5 Years. Shriram is India’s largest Asset Financing company and the Fixed Deposits have been rated FAA+ by CRISIL and MAA+ by ICRA.

Product Details(Interest Rate Sheet):

Interest Rates applicable on Fixed Deposit to listed NCD Applicant/Shareholder from 15^th July, 2011 to 31^st July, 2011

Minimum investment Rs.25000/-

INTEREST RATES Applicable on Fixed Deposit to Investors other than NCD Applicant / Shareholder

Minimum investment Rs.25000/-

FOR MORE DETAILS OR QUERY PLEASE CALL:-9314212552

Firstly – spare at least an hour for this check (yes it takes that long to check a car out! new or used!!)

Check to see if the owner has maintained a chart or a service history with bills – all good responsible car owners maintain a chart and keep a track of their service record, it will give you an idea of how much care the car has got and also how much it costs to maintain it.

Check out the car – take a good walk around it; look for any scratches visible to the naked eye, any signs of a dent, any part out of place. Easiest things to spot – windshield, scratches, dents, corrosion spots, broken lenses, faded mirrors, worn wipers, missing wheel covers (hubcaps).

Closer inspection – bend down, take a good look at the undercarriage – if needed take an expert along to gauge the quality of the suspension (right down to the bushes and bolts) and or anything which could give a sign of the car having been driven rashly or by a novice. The lines of the car should be perfectly straight – what I do is position myself behind the car on either side of the back fenders and bend down to my knees to see the lineage of the car right down to the front head lamps (gives a fair idea of the care having been involved in a side on accident.) Check the paint quality – it should be even parts of it too faded, or too new, are dead giveaways of having been readied after an accident.

Much closer inspection – open the bonnet – look on the insides for any kind of unevenness ( again for crashes and accidents, or rash driving ) the car should have a perfectly crafted skeleton if driven responsibly. Try to check for any kind of leakages, rusting, paint chips, or funny smells. Open the Boot, check the linings again for unevenness (again for crashes and accidents and rash driving) l removes everything from the boot including the spare wheel and sits inside if you have to and get a good look.

The Tyres- check for tread – uneven, extra worn, over used, chipped rubber missing hubcaps, brand, size etc (check for the company size brand and spec and carry it along with you if possible depending on the car you are looking at) take an even closer look at the rim, get those knees down, run your fingers around the rim from the inside, it will grease and dirty the fingers but will tell you a lot about what the car has been through.

The inside – open all the doors and sit in the drivers seat and get a feel of the vehicle, check the seat lining, bend down again and look at the amount of wear and tear, remove the floor mats and check for any kind of damage, check the pedals ( clutch brake and accelerator for any kind of looseness ), try changing a few gears, try the seat adjustor, inspect the steering closely, start the car – it should start easily no matter how old or cold, check out every electrical equipment provided from indicators to the Aircon, Wipers, Music System ( if fitted ), keep a ear out for engine noise ( remember your doors are open and you should get a good sound of the engine.

Switch off and get in the back seat, inspect thoroughly again for any signs of excess wear and tear, seat quality, door handles, windows ( especially if power windows ) leg room.

You are now ready to take the test drive! get back in the drivers seat and start the car, take a test drive – preferably in a deserted place at first and then onto a crowded road – get some good speed – see how the car handles – check for excessive roll, take it into a couple of potholes (It shouldn’t be too hard to find on our roads! and see how the suspension is, the drive quality should extremely good if the car has been well maintained. Check the Pick up, with and without the Aircon, check the sound quality of the music system (speakers etc) if one is fitted. Test the brakes by jamming them just a little hard at good speed (55-60 km/h should be good) (make sure the road is adequately wide and deserted and drive safe.) If you’re not sure about how to gauge the alignment then take an expert along with you. The wheels should be well aligned and the machine should not have any kind of wobble, neither should the suspension be too soft and squishy (which is the case with most used cars I have driven, sad but we don’t maintain our cars very well!).

Testing the Gears – while on the test drive Try to drive the vehicle in each gear. All gears should shift smoothly and easily without any noises, jerks or shudder. While driving at the second or third gear, try to accelerate suddenly. The clutch should not slip. If you feel slipping (the engine rpm increases but the vehicle speed remains the same), the clutch may need to be replaced. Try to drive with acceleration and deceleration – there should be no whining or humming noise under any condition. All the gears should shift easily and noiselessly. Try to shift into reverse; there should be no grinding noise.

Under the Bonnet – I would recommend you take an expert with you as it is difficult to check the oil levels, engine quality, noises, coolant, funny odours ( for ex burnt rubber or oil ), the caps, leakages and excessive rusting and corrosion, moreover, the engine should be clean.

Under the car – apart from the undercarriage – take a close look at the exhaust pipe, check for noises, rattling, leakages, rusting, and physical damage. Also it should not emit smoke while turned on.

Best Reading:

• What is a Loan?
• SBI Car Loan
  

One of the greatest weapon that any warrior or fighter can ever have in his wars at battles is no less than forgiveness.  Since the time of the early Greeks and Romans, they believe that the most powerful weapon that they could ever give to their enemies is no less than forgiveness.  In the history of mankind, the greatest story which was ever told was on how Jesus Christ offered himself as a ransom for many.  He shed his precious blood on the cross in order for us to attain forgiveness from the Father.

Jesus was crucified to fulfill the mission of god the Father.  Jesus’ crucifixion is the apex of the salvation of mankind.  Had Jesus not been crucified or resisted crucifixion, humanity will remain in darkness and everyone will eternally be damned to hell.  The theology of His crucifixion is said to be the most profound and deep for all Christians and it is one thing that humanity should be very thankful about.  This mystery of crucifixion brings us hope and joy, an event in human history that is marvelous yet misunderstood, wonderfully amazing yet shameful in a sense for all the Jewish community.

To be crucified during the time of Jesus is the worst punishment that a criminal will undergo.  That was the primary reason why many faithful followers of Jesus after his crucifixion wavered and dwindled.  But soon after, He resurrected and changed the course of history.  He brought that enormous light that signals our total redemption and being saved.

Nothing therefore could even beat the perfect message of Christ’s crucifixion simply because from that somber mountain of the Calvary life and death got a new and momentous meaning.  His blood shed on the cross, his precious life offered for mankind can never be surpassed by any other human feat or deed.  Can you imagine a son of God offering Himself on the shameful cross naked and insulted for a sin He in fact is never responsible?

Well, from shame, the cross now assumes the symbol of love.  Christians draw from the cross the merciful and healing love which it gives through the power of Jesus’ blood.  It goes without saying then that as followers of this one true God, Jesus Christ, we must never be ashamed to suffer like Him and follow all His divine footsteps towards the cross.  After all this perfect example shown to us by Christ will eventually lead us to resurrection.  The glory of being an apostle of Christ is reached after the crucifixion.  All of our pains and difficulties here on earth will eventually be rewarded in the life here after.  Thus let us all work hand in hand in bringing the message of the cross through all the earth, shouting, chanting, celebrating for this precious redemption God the Son has unselfishly shared to us.  Only then could we be truly worthy of His love, mercy and redeeming grace shed on the cross by His most precious blood.

Best Reading:

• Story Of Three People Who Overcome Poverty
• Practice Makes Perfect: A Basic Lesson in Motivation
• Think Before You Speak
• Importance of Patience in life
• Never Give Up in the face of challenges
• Keep Your Eyes On Target

In conclusion, we too must be like Jesus, the Savior for the Christians, a great prophet for the Muslims and a revered person for other religions of the world.  His sweetest revenge is ultimately forgiveness of man’s sinfulness.  Life will truly be wonderful with forgiveness reigning in our hearts.  Happy weekend!