Indian Current Affairs: 19.12.2007

Large risks with a sum insured of over Rs. 10,000 crores are reinsured directly by local companies. As a result, the pricing in their contracts reflects the position of international markets.
Cheaper availability of reinsurance increases the capacity of local insurers and therefore increases competition. When this is not the case, even small ticket insurance deals are impacted negatively.

There are nearly 250 PSEs (Public Sector Enterprises) but only about 50 are listed. At the end of March 2006, 157 PSEs (out of 215 surveyed) were profitable, against 120 in 2001-02.
As most of the PSEs are in a profit making mode, ET argues that this is the right time for listing these PSEs. Divesting a small stake in these PSEs will unlock lot of value.

SSSA Aiyar, as is his wont debunks the theory that the rising rupee is costing India in millions of lost jobs. Have patience? Read it in full here.
If we look at rupee’s value vis-à-vis other major currencies in Asia from July 2005, it is clear that it appreciated much less than the other currencies. It has risen only 9.4% against the dollar whereas China (10.9%), South Korea (11.1%), Malaysia (12.6%) and Thailand (20.2%) have appreciated much higher.
With many a corporate taking a beating because of the rising rupee, another column in today’s ET suggests that corporate India should start using ‘constant currency’ to report its results. “Constant currency’ is when a company reports its results, stripping the effect of changes in foreign exchange rates.
For eg., if a company sold goods worth $100 in 2006 at Rs. 40 to a dollar, its sales would be worth Rs. 4000. In 2007, if the sales rose to $120 and the dollar fetched Rs. 30, then sales in rupee terms would be Rs. 3,600, a 10% decline. But in constant currency terms, the sale would grow by Rs. 20%.

Many a time when we are asked to say a few words on the current or ensuing five year plan, we don’t know where to begin and where to end.
Look at this on the 11^th Plan:

The plan envisages an investment of Rs. 36 lakh crores in various sectors, with special emphasis on equitable growth. Important targets in the plan include:

The plan targets a 9% growth rate for the economy.
The GBS (Gross Budgetary Support) for the Plan has been fixed at Rs. 10 lakh crores.

The Justice (Retd.) Jas Raj Chopra committee that has been constituted to go into the issue of declaring Gujjars of Rajasthan as a scheduled tribe has submitted its report.
The committee felt that the community’s demand for enlistment in the ST category could not be met, as such a step would require the abrogation of the criteria set by the Centre for the process. It said “Passing judgment on the candidature of a particular group for the ST status in terms of presently used criteria is very difficult.”
The Gujjars are obviously unhappy with this. Their leader Kirori Singh Bainsla termed the report as a ‘deceit’ on the part of the Rajasthan CM.
But the Meena groups, which till now have been opposing the ST status to the Gujjars, spoke in somewhat conciliatory tone about the government’s decision to refer the matter to the Centre.

Is Kaka, the Brazilian midfielder.
For him, it is the third accolade this year. He won European football’s Golden Ball and World Soccer magazine’s Player of the Year award.
He is the fifth Brazilian to win this title. The others are: Ronaldo, Ronaldinho, Romario and Rivaldo.

Ever played this game?
It was invented by Swiss mathematician Leonhard Euler in the late 1700’s.
Now a colourful and easier version of this game is invented by a doctoral student (Antony Harfield) at the University of Warrick in Britain.

Indian Current Affairs