"With claimed revenues of $111 billion in 2000, it took Enron only 15 years to achieve all this glory.
And ironically it took Enron only 24 hours to go bankrupt"To know More keep watching this Space
Riddhiman Jain
Wednesday, July 2, 2008
Coming soon-ENRON SCAM
Know How The Six Consecutive years Fortune 500 Award winning comapany, for Innovation , Got bankrupt in 24hrs
To know More keep watching this Space
Riddhiman Jain
To know More keep watching this Space
Riddhiman Jain
CarBon Credits-A Concept Simplified.
Emission & Carbon Trading
o In the highly developed arena of global capitalism everything has its price
o concentration of CO2 is increasing in the atmosphere.
o increase in CO2 à increase in earth’s temperature
o Leads to increased hurricane or drought
o Ways to decrease the rate of increase in the conc. Of CO2
o reducing use of fossil fuels
o reducing the rate of forest land conversion
o Proposals of injecting CO2 deep into the earth or into the ocean
o CARBON TRADING MARKETS
EMISSIONS TRADING
o Emissions trading is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants
o In this case companies or other groups that emit the pollutant are given credits or allowances which represent the right to emit a specific amount.
o The total amount of credits cannot exceed the cap, limiting total emissions to that level.
o Companies that pollute beyond their allowances must buy credits from those who pollute less than their allowances or face heavy penalties.
o This transfer is referred to as a trade.
o In simple words, the buyer is being fined for polluting, while the seller is being rewarded for having reduced emissions.
o Thus companies that can easily reduce emissions will do so and those for which it is harder will buy credits which reduce greenhouse gasses at the lowest possible cost to society.
o Corporations can retire pollution credits by donating them to a nonprofit and then be eligible for a tax deduction.
o Allowances are accounted for in the balance sheet of the company as intangible assets.
o Because emissions trading use markets to determine how to deal with the problem of pollution, it is often touted as an example of effective free market environmentalism.
o Several trading market but European Union is the largest.
o Carbon market makes up the bulk of these and is growing in popularity.
CARBON TRADING
o Carbon trading <= Emission Trading
Problem
o Carbon emissions into the earth’s atmosphere have resulted in drastic climatic changes.
o And we know these changes have negative impacts
SOLUTION
o NGOs for long have been screaming for everybody’s attention towards this huge problem
o But no one seems to care enough, until there is a financial incentive attached to it.
o So, carbon trading is a trading mechanism where companies gain a monetary benefit out of polluting the air less.
o Word Carbon trading involves the creation and transfer of carbon rights from one party to another. The trade requires the measurement, allocation and reporting of these carbon rights or "carbon credits"
POTENTIAL BUYER
o Potential buyers for Carbon credits are entities; typically a business that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration.
o These businesses may include power generating facilities or many kinds of manufacturers.
POTENTIAL SELLER
o Potential seller for carbon credits are entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils.
o Business entities that reduce their carbon emission may be able to sell their reductions to other emitters.
Personal Carbon Trading
o It’s a proposal and there are no working schemes currently in existence.
o Its an act of equally allocating emissions credits to individuals on a per capita basis, within national carbon budgets.
o Individuals would then have to surrender these credits when buying fuel or electricity.
o Individuals wanting or needing more energy would be able to partake in emissions trading to secure more credits, just as companies do
o Carbon allowances, more likely to be called ’carbon credits’ would be issued at no cost to individuals and surrendered electronically when purchasing fuel and electricity.
o People using less than their share could sell the surplus to people or businesses using more than their allotted share, via a market.
o In this way, it would provide an incentive for every individual to take steps to reduce their ‘personal emissions’, in other words, the emissions for which they are directly responsible.
CARBON CREDIT
o Key component of emissions trading schemes.
o Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air
o Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price.
o Emissions become an internal cost of doing business and are visible on the balance sheet alongside raw materials and other liabilities or assets.
Example:
o Consider a business that owns a factory putting out 100,000 tonnes of greenhouse gas emissions in a year.
o Its government then enacts a law that limits the emissions that the business can produce.
o So the factory is given a quota of say 80,000 tonnes per year.
o The factory either reduces its emissions to 80,000 tonnes or is required to purchase carbon credits to offset the excess.
Other Solutions:
- It can either offset emissions by planting a number of trees for every carbon credit
- Or it can invest in new low-emission machinery and have a surplus of allowances as a result.
In either solution both the buyer and the seller would submit accounts for their emissions to prove that their allowances were met correctly.
There are also many companies that sell carbon credits to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis.
CARBON FARMING
o It tells us how forest landowners can get involved in carbon trading.
o Landowners can accumulate carbon by planting trees where no trees currently exist (i.e., afforestation).
o The carbon accumulating in trees can potential be sold as carbon credits.
o Enhancing the growth of your forest to accumulate carbon more quickly (i.e., fertilization) may also generate tradable carbon credits as can the accumulation of carbon in forest soils.
On the other side:
o Carbon Trading means à "permission" to put a given amount of CO2 (like a metric ton) into the atmosphere.
o Those who are polluting less will sell credits to those who are polluting more
o It continues to allow those who are rich enough to afford to add greenhouse gases to the atmosphere.
o Those that are not wealthy will end up being penalized the most.
o But the end result is that the greenhouse gases won't have decreased any.
o It's kind of like a kid spreading the food around on his plate to make it look like he's eaten it.
Tuesday, July 1, 2008
COMING UP
What is CARBON TRADING????
Intricacies of such new trade investments!!!!!!!!
What it means for individual and for BIG SHOT Companies!!
Intricacies of such new trade investments!!!!!!!!
What it means for individual and for BIG SHOT Companies!!
CHAOTIC CRUDE!!
Oil has moved up from a $100 a barrel to over $140 (June 27) in just 115 days.This 40% jump shows an escalation of almost $0.35 per barrel per day. Even when consumers are craving for cover the government finds it difficult to shield the innocent consumers. Apart from the ad hoc hike in the administered prices of petrol, diesel, and LPG India still does not have any policy to respond to the rising prices and demands on an ongoing basis although it imports 70% of its crude oil needs.
IMPACT ON CONSUMERS
Fuel Prices are all set to go up again.The fuel hike,on June 4, was against oil being $127 per barrel. Today it stands at around $140, a 10% increase in 25 days. Prices of branded fuel that are nt administered by the government could be the first to be hiked. Jet fuel prices a set are set to increase thereby further increasing airfares hitting the consumers hard on the face. Next fiscal measure on the verge could be Freight costs hike rendering costly fruits, vegetables and other items.
IMPACT ON OilCOS
We have already seen Reliance Petrol shutting its activity on account of private companies being left out from government based subsidies. We have other oil companies that have put their expansion plans on hold du to the current surge in the prices. The recent upward trend in the crude oil has already undone the math rolled out by the Central Govt barely 3 weeks ago. Under recoveries are Rs. 200,000 crores for the oil companies at current prices. Oil Cos claim that they are loosing about 23/liter on diesel and Rs 13.79 on petrol. Margins are highly under pressure.
IMPACT ON ECONOMY
There will be a cascading effect on all the commodity prices. With fruits, vegetables, steel, iron all set to rise , the devil named Inflation is set to linger around for long. The government Oil import bill is to rise substantially(it already rose by 46% in april) . if the government decides to shoulder the larger portion of the rising subsidy burden in the form of yet more oil bonds, Public borrowings will increase further putting a upward pressure on prices and inflation just like in the case of higher fiscal deficit, even if the government does not count oil bonds as borrowings that constitute fiscal deficit. The combined effect would result in slower economic growth against the claims of FIN MIN. Car sales could be hit and this does not look good for the much hyped People’s car TATA NANO slated to be released by this Durga Ashtami in the third Quarter of this fiscal year.
Sources: ET 27th june.
IMPACT ON CONSUMERS
Fuel Prices are all set to go up again.The fuel hike,on June 4, was against oil being $127 per barrel. Today it stands at around $140, a 10% increase in 25 days. Prices of branded fuel that are nt administered by the government could be the first to be hiked. Jet fuel prices a set are set to increase thereby further increasing airfares hitting the consumers hard on the face. Next fiscal measure on the verge could be Freight costs hike rendering costly fruits, vegetables and other items.
IMPACT ON OilCOS
We have already seen Reliance Petrol shutting its activity on account of private companies being left out from government based subsidies. We have other oil companies that have put their expansion plans on hold du to the current surge in the prices. The recent upward trend in the crude oil has already undone the math rolled out by the Central Govt barely 3 weeks ago. Under recoveries are Rs. 200,000 crores for the oil companies at current prices. Oil Cos claim that they are loosing about 23/liter on diesel and Rs 13.79 on petrol. Margins are highly under pressure.
IMPACT ON ECONOMY
There will be a cascading effect on all the commodity prices. With fruits, vegetables, steel, iron all set to rise , the devil named Inflation is set to linger around for long. The government Oil import bill is to rise substantially(it already rose by 46% in april) . if the government decides to shoulder the larger portion of the rising subsidy burden in the form of yet more oil bonds, Public borrowings will increase further putting a upward pressure on prices and inflation just like in the case of higher fiscal deficit, even if the government does not count oil bonds as borrowings that constitute fiscal deficit. The combined effect would result in slower economic growth against the claims of FIN MIN. Car sales could be hit and this does not look good for the much hyped People’s car TATA NANO slated to be released by this Durga Ashtami in the third Quarter of this fiscal year.
Sources: ET 27th june.
Saturday, June 28, 2008
BRAINVEST...............food for thought
1. Why are high trading stocks called “Blue
Chips”?
2. What trading technique did Osama Bin
Laden employ during 9/11 attacks?
3. Which is the first company to launch its
own retail outlets?
4. Where is the Annual General Meeting
(AGM) of Reliance Ind. Ltd. held?
5. Where were stocks traded before the
inception of stock exchanges?
The Answers are written in the comment section of this post............
Chips”?
2. What trading technique did Osama Bin
Laden employ during 9/11 attacks?
3. Which is the first company to launch its
own retail outlets?
4. Where is the Annual General Meeting
(AGM) of Reliance Ind. Ltd. held?
5. Where were stocks traded before the
inception of stock exchanges?
The Answers are written in the comment section of this post............
Friday, June 6, 2008
If you are not able to view the ppt of " what is subprime crisis????" placed at the bottom of the blog please open the given website.....
http://docs.google.com/Presentation?id=dgnh42dx_08qx28zdn
mahesh jakhotia
http://docs.google.com/Presentation?id=dgnh42dx_08qx28zdn
mahesh jakhotia
How the U.S. sub prime crisis will affect India?
India has been growing at a fast rate from few years. GDP growth rate has been above 8% in the recent years. One of the major contributors to GDP is the Information Technology industry. In other words, this contributor is also called services sector.
The fallout from the U.S. sub prime crisis is crossing oceans and some of it has already landed on India’s shores, touching India’s most established IT and business- service providers. Providers whose clients include mortgage lenders that scaled back or gone out of business are feeling a direct hit. The largest service providers aren’t in big trouble, but some small providers, many of which counted on serving sub prime lenders for much of their revenue, have lowered their earnings forecasts. But there is a potential indirect hit that is much more troublesome: Indian providers of all sizes still depend largely on U.S. companies and organizations for much of their business, despite of their attempts at geographic diversification over the years. So if the sub prime crisis takes the wind out of the U.S. economy, service providers’ revenues will suffer dramatically.
If clients in the U.S. and else where stop their expansion plans, the spending on IT projects drops. The chances of Indian providers growing by providing innovative products are severely restricted.
Further, a slowdown in the U.S. economy will weaken the dollar against the Indian rupee and that increases the pressure on the service providers who get their revenues in dollars and where in their spending is in rupees. Some service providers are trying to offset this risk by increasing the price for newly taken contracts and restructuring the existing contracts. But it is possible that they will be able to negotiate the price increases in a highly competitive market, if the sub-prime induced recession occurs.
But here is the other side of the situation. If at all there occurs a recession in the U.S. economy, the country will look for ‘low-cost’ services and India will be seen in the first few places definitely. This could help the service providers get more contracts but at low prices compared with non-recession situation. This is just an assumption. Even if this kind of thing happens, not everybody gets the benefit. Only those highly reliable, low-cost providing and innovative service providers get these opportunities.
The fallout from the U.S. sub prime crisis is crossing oceans and some of it has already landed on India’s shores, touching India’s most established IT and business- service providers. Providers whose clients include mortgage lenders that scaled back or gone out of business are feeling a direct hit. The largest service providers aren’t in big trouble, but some small providers, many of which counted on serving sub prime lenders for much of their revenue, have lowered their earnings forecasts. But there is a potential indirect hit that is much more troublesome: Indian providers of all sizes still depend largely on U.S. companies and organizations for much of their business, despite of their attempts at geographic diversification over the years. So if the sub prime crisis takes the wind out of the U.S. economy, service providers’ revenues will suffer dramatically.
If clients in the U.S. and else where stop their expansion plans, the spending on IT projects drops. The chances of Indian providers growing by providing innovative products are severely restricted.
Further, a slowdown in the U.S. economy will weaken the dollar against the Indian rupee and that increases the pressure on the service providers who get their revenues in dollars and where in their spending is in rupees. Some service providers are trying to offset this risk by increasing the price for newly taken contracts and restructuring the existing contracts. But it is possible that they will be able to negotiate the price increases in a highly competitive market, if the sub-prime induced recession occurs.
But here is the other side of the situation. If at all there occurs a recession in the U.S. economy, the country will look for ‘low-cost’ services and India will be seen in the first few places definitely. This could help the service providers get more contracts but at low prices compared with non-recession situation. This is just an assumption. Even if this kind of thing happens, not everybody gets the benefit. Only those highly reliable, low-cost providing and innovative service providers get these opportunities.
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