Birla Cotsyn India Ltd. is a penny stock which is presently trading in the 10-15 paisa range.

What makes this price-range lucrative and intriguing? 
If someone buys this stock at 10 paisa  and succeeds in selling it at 15 paisa , he makes a profit of 50% that too in a day or a few more.

If someone is fortunate enough to secure this 50 % return in a week and  when this return is annualized comes as a whopping 2607 %.

Compare this with the FD return which is presently only 9% per annum !

But wait !

On the flip side, if someone who had bought this stock at 15 paisa and liquidates his holding at 10 paisa (for whatsoever reason) loses 33 % of his capital.

For past few days stock is trading in 10-15 paisa range




Hopeful traders voraciously try to buy at 10 paisa and attempts to sell at 15 paisa but only a few succeeds to do so.

There are a large number of buyers who everyday place orders to buy this stock at 5 paisa.

A snap of market depth window
By the time of writing this post, there were around 2.37 buyers for a single seller.
Trading in this stock is very difficult and only few lakhs of shares get traded out of a couple of crore orders.

Morale is, trading in this stock is a high-risk & high-gain proposition and trading in this scrip being illiquid, a lot depends on your luck.

 
 Start a 
Glass fiber Manufacturing Business

Glass fiber also called fiberglass. It is material made from extremely fine fibers of glass Fiberglass is a lightweight, extremely strong, and robust material. Although strength properties are somewhat lower than carbon fiber and it is less stiff, the material is typically far less brittle, and the raw materials are much less expensive. Its bulk strength and weight properties are also very favorable when compared to metals, and it can be easily formed using molding processes. Glass is the oldest, and most familiar, performance fiber. Fibers have been manufactured from glass since the 1930s.

Types of Glass Fiber As to the raw material glass used to make glass fibres or nonwovens of glass fibres, the following classification is known:1. A-glass: With regard to its composition, it is close to window glass. In the Federal Republic of Germany it is mainly used in the manufacture of process equipment.2. C-glass: This kind of glass shows better resistance to chemical impact.3. E-glass: This kind of glass combines the characteristics of C-glass with very good insulation to electricity.4. AE-glass: Alkali resistant glass.Generally, glass consists of quartz sand, soda, sodium sulphate, potash, feldspar and a number of refining and dying additives. The characteristics, with them the classification of the glass fibres to be made, are defined by the combination of raw materials and their proportions. Textile glass fibres mostly show a circular


Properties of Glass FiberGlass fibers are useful because of their high ratio of surface area to weight. However, the increased surface area makes them much more susceptible to chemical attack. By trapping air within them, blocks of glass fiber make good thermal insulation, with a thermal conductivity of the order of 0.05 W/(mK).The strength of glass is usually tested and reported for "virgin" or pristine fibers those which have just been manufactured. The freshest, thinnest fibers are the strongest because the thinner fibers are more ductile. The more the surface is scratched, the less the resulting tenacity. Because glass has an amorphous structure, its properties are the same along the fiber and across the fiber. Humidity is an important factor in the tensile strength. Moisture is easily adsorbed, and can worsen microscopic cracks and surface defects, and lessen tenacity.

In contrast to carbon fiber, glass can undergo more elongation before it breaks. There is a correlation between bending diameter of the filament and the filament diameter. The viscosity of the molten glass is very important for manufacturing success. During drawing (pulling of the glass to reduce fiber circumference), the viscosity should be relatively low. If it is too high, the fiber will break during drawing. However, if it is too low, the glass will form droplets rather than drawing out into fiber.

Raw MaterialThe basic raw materials for fiberglass products are a variety of natural minerals and manufactured chemicals. The major ingredients are silica sand, limestone, and soda ash. Other ingredients may include calcined alumina, borax, feldspar, nepheline syenite, magnesite, and kaolin clay, among others. Silica sand is used as the glass former, and soda ash and limestone help primarily to lower the melting temperature. Other ingredients are used to improve certain properties, such as borax for chemical resistance. Waste glass, also called cullet, is also used as a raw material. The raw materials must be carefully weighed in exact quantities and thoroughly mixed together (called batching) before being melted into glass.Fiberglass

Glass Fiber Manufacturing Processes
After the initial process of melting glass and passing it through spinnerets, continuous filaments or staple fibers of glass are manufactured by two different methods.

Continuous Filament Process
In this process, continuous filaments of indefinite length is produced. The molten glass passes through spinnerets having hundreds of small openings. These strands of multiple filaments are carried to winder revolving at very high speed of more than 2 miles per km. This process draws out the fibers in parallel filaments of the diameter of the openings. A sizing or a binder is applied to facilitate the twisting and winding process and to prevent breakage during yarn formation. After winding, filaments are further twisted and plied to make yarns by methods similar to those for making other continuous filament yarns. The sizing is removed through volatizing in an oven. These yarns are used for making such items as curtains and drapes.

Staple Fiber Process
Fibers with long-staple qualities are manufactured through staple fiber process. There are many methods for producing such fibers.

In one of such methods, the molten glass flows through the small holes of bushing, where jets of compressed air shake the thin streams of molten glass into fine fibers. These fibers vary in length ranging from 8 to 15 inches. The fibers fall through a spray of lubricant and a drying flame onto e revolving drum where they form into a thin web. These fibers in the form of web are gathered from the drum into a sliver. Yarn is then made from this sliver by similar methods that are adopted for making cotton or wool yarns. These yarns are used for fabrics for industrial purposes where insulation is required.

In yet another method, the ends of the glass rods are melted from which drops of glass fall away drawing off glass filaments after them onto a speedily revolving cylinder where they are wound parallel to each other. A web of sliver is formed if the cylinder moves sideways. Sometimes, the staple may be thrown off the cylinder onto a stationary sieve where it forms a sliver. In either conditions, the sliver is then converted into spun yarn.

The staple fiber, if subjected to oven, is compressed to the desired thickness and the binder which was earlier applied, is cured. This permanently binds the fibers.

Production:
The subsequent manufacture of glass fibres may be executed to the direct melting process. However, in most cases glass rods or balls are made first which then may undergo a variety of further processes.

Nozzle-Drawing:
As can be seen in Fig. 1-50, the glass fed in is melted in a heated melt tub at 1250–1400oC. Then, it emerges at the bottom of the melt tub from nozzle holes of 1–25 mm diameter and it is taken off and drawn. The filaments solidify and are finished and wound. One can find them in the shops as various kinds of “glass silk”. To make them into webs, the filaments are cut to length (mostly, between 6 and 25 mm).

Manufacture of glass melt

Processes to make glass fibres
Nozzle-Blowing: 
The same as with nozzle-drawing, glass balls are melted in the tub. The melt emerging from the nozzle holes is then taken by pressed air, which draws the liquid glass so as to make fibres of 6–10 um diameter. A fluttering effect is caused by the flow of pressed air, which results in fibres of lengths from 50 to 300 mm. A lubricant is put on and the fibres are laid down on a sieve drum which sucks them in. The dry web received is held together by the long fibres, the short ones lying in between them as a filling material. Then, the slivers of glass fibre material are cut.

Rod-Drawing:
 
By means of a burner, bundles of glass rods are melted at their bottom ends. This results in drops which, as they fall down, draw filaments after them. The filaments are taken by a rotating drum, a squeegee laying them down onto a perforated belt. Thus, a dry web is received which can be wound as glass fibre slivers. – Machine performance being limited by the number of glass rods fed in, the rotating drum may be combined with nozzle-drawing, which results in drum-drawing. This multiplies machine performance. The dry web is again laid down onto a perforated belt and solidified or, after winding it so as to receive slivers, cut for further processing on machines producing wetlaid nonwovens. Using and processing glass fibres is not without any problems. For example, fine pieces of broken fibres may disturb if the work place is not well prepared for the purpose. Using the nonwovens to manufacture glass-fibre reinforced plastics, it is important the surface of the plastic material is fully even. Ends of fibre looking out may be pulled out or loosened by outward stress (temperature, gases, liquids), which may influence material characteristics. In some cases, it is
advisable to cover up such layers of glass fibre with suitable chemical fibres. 


Uses of Glass Fiber or Glass Yarn
Glass fiber is manufactured in a wide range of fine diameters. Some of them are so fine that they can be seen only through a microscope. This quality of fineness contributes greatly to the flexibility of glass fibers. Various manufacturers produce different types of glass fibers for different end uses. Glass fibers them are used for various purpose.

  1. For making home furnishings fabrics;
  2. For making apparels and garments; and
  3. For the purpose tires and reinforced plastics.
There are certain glass fibers that can resist heat upto 7200oC and can withstand forces having speed of 15,000 miles per hour. These types of glass fibers are used as
  1. Filament windings around rocket cases;
  2. Nose cones;
  3. Exhaust nozzles; and
  4. Heat shields for aeronautical equipment
Some other types of glass fibers are embedded into various plastics for strength. These are used in
  1. Boat hulls and seats;
  2. Fishing rods; and
  3. Wall paneling
Some other types of glass fibers are used for reinforcing electrical insulation. Yet other types are used as batting for heat insulation in refrigerators and stoves.

Glass Fibre  Making Machine


Telephone:
86-516-89912644
Mobile Phone:
13952225330
Fax:
86-516-89912643
Address:
Henghui Industrial Park, Longgu Town. Pei County
Zip:
221613
Country/Region:
China (Mainland)
Province/State:
Jiangsu
City:
xuzhou








As we  have seen in previous post how first time home buyers (of a property whose value does not exceed Rs, 40 lakh) availing a home loan up to Rs. 25 lakh shall be entitled to a deduction of additional 1 lakh Rs, we shall try to analyze its worthiness here.

Let me again clarify that this benefit shall only be available to those first time buyers who shall be availing home loans on 1/1/2013 and onwards.

State bank of India is presently offering home loans at an interest rate of 9.95 % per annum for loan-amounts up to Rs. 30 lakh.

Let us see how Mr. Khanna availing a loan of Rs. 25 lakh for a tenure of 20 years shall be benefitted.

For the aforesaid loan Mr. Khanna shall have to pay an EMI (equated monthly instalment) of Rs. 24,043. 

Every EMI has 2 components- interest component and principal component.
With passing years interest component keeps on reducing while principal component increases.

Thus every year Mr. Khanna shall be paying Rs. 2,88,516 toward the home loan.

Mr. Khanna pays annual interest amount as per the following table.


Morale of the story is - How this benefit loses its lucurativeness after 4 years.

In the 10th year Mr. Khanna shall be able to avail a deduction of Rs. 1,86,961 only.

What is worth mentioning is what deduction Mr. Khanna shall get in 20 th year ?

It shall be modest Rs. 14,966 only. 

image courtesy: worldwithoutus
If you are going to buy your first  house property whose value is not more than Rs.40 lakh and for this if you desire to avail a home loan up to Rs. 25 lakh, then wait deferring your home loan by just 1 month could give you an additional income tax deduction up to Rs. 1 lakh.

How this became possible? 

Thanks to today's budget, Mr. FM introduced a new section 80EE and according to it, home loan up to Rs. 25 lakh shall give you additional tax deduction up to Rs. 1 lakh (in addition to earlier Rs. 1.5 lakh {under section 24} thus making it Rs. 2.5 lakh).

So deferring your home loan just by a month make sense but the question is-Is there any property  below Rs. 40 lakh in in decent areas of metros like Mumbai, Delhi and Bangalore?




Mr. Chidambaram started narrating the budget on the note of falling global economy and its languishing impact on our domestic economy,  then profusely started doling money for the social sector.
Social-sector allocations (for Scheduled and backward classes, old people, minorities etc ) were expected in perspective of the oncoming 2014 general election.
To fare well in the elections sops were necessary but sinking economy was another concern. Rising inflation and twin deficits along with the fear of the downgrade by rating agencies constrained the FM from delivering a populist budget and as a result a insipid budget got delivered which is supposed to boost the economy in coming future.

Economy

FM expects India has got a potential to become a $ 5 trillion economy by 2025.Fiscal deficit and revenue deficit target for FY 14 has been set up at 4.8 % and 3.3% respectively. An amount of Rs. 14,000 crore shall be infused in PSU banks.

Taxation
·         There has been no change in the tax slab  for FY 2014. However, a tax credit (rebate) of Rs. 2000 shall be given for the tax payers falling in the Rs. 2-5 lakh income range.
·         For those who earn more than Rs. 1 crore shall be levied a surcharge of 10 %. This attempt was attributed as a step towards enhancing the Tax-to-GDP Ratio.
·         Inflation indexed bonds have been introduced in this budget to desist the people who have been investing in gold as a hedge against the inflation.
·         First time home loan buyers shall now avail an additional deduction for a housing loan up to Rs. 25 lakh. So now for the qualified home loan buyers total deduction will be Rs. 2.5 lakh.
·         TDS @ 1% on the property transactions above Rs. 50 lakh has been introduced

Capital markets

·         STT (Security Transaction Tax)on equity futures reduced to .01 % (earlier .017 %). Reducing STT was a long term demand from the capital market players.
·         CTT (Commodity Transaction Tax) has been introduced on on non-agro futures introduced at .01 %
·         FII can now trade in ETFs.
·         FII-FDI distinction shall bring more money into the markets

Rajeev Gandhi Equity Saving Schemehas been liberalized, Now  people with up to Rs. 12 lakh gross income can invest in this scheme earlier this was capped at Rs.10 lakh.
Now, first time investors shall be allowed to invest in this scheme for successive 3 years- i.e. 2 more years. Under RGESS, qualified investors can invest up to Rs. 50,000 in designated shares and MF schemes to become entitled for a deduction of Rs. 25,000.

 Entertainment
·         Set top boxes shall cost u more as custom duty has been increased. DTH experience becomes expensive

For our youth

·         Mobile above Rs. 2,000 shall become more expensive due to hike in the import duty from 1% to 6% ,
·         Dining out in AC restaurants shall now cost more as the same shall now attract the service tax. So be prepared to shell out more money at Domino’s and McDonald’s.
·         Custom duty on imported luxury bike has been increased to 75 % from earlier 60 %.
·         Excise duty on non-taxi SUVs hiked to 30 % from 27 %.
·         SED (special excise duty) on cigarettes hiked to 18 %

Foreign Travelers
·         Duty free gold import limit hiked  – Rs. 50,000 for male and Rs. 1,00,000 for females

As expected, V-mart shares were listed a tad above its issue price and ended 3% down.This IPO was reviewed here.
This blog had categorically warned its readers to stay away from this issue and advised no to get tempted even in the case of any price rise which may be operator driven.
On the last day,this issue saw over-subscription in FII and DII category while retail portion was subscribed around 80 %.
By the end of the day only 5.5 lakh shars were traded. 



In the last budget a new provision was introduced in the union budget (under section 80 TTA) which exempts interest earned up to Rs. 10,000 Rs. from saving bank accounts for individuals and HUFs.
A few banks like Yes bank, Kotak Mahindra bank and Indusind bank are giving interest on saving accounts in a range of 6-7 % on saving accounts for an account balance above Rs. 1 lakh.

Let’s see how one can be benefitted from this provision?

Mr. Verma and Mr. Sharma both worked for the same firm where both of them got a performance reward of Rs. 1.4 lakh. 
Mr. Verma opened a saving account with a private bank which offered a coupon rate of 7% to deposit the amount while Mr. Sharma opened an FD account with the reward-amount which offered him a coupon rate of 9 %.
Mr. Sharma jeered Mr. Verma boasting how his is earning 2 % higher return.

What do you think, who played smart?

Prima-facie, it appears Mr. Sharma played it smart as he is getting a higher return.
But wait, post-tax things changed dramatically.
Mr. Verma did not have any significant amount in his previous saving bank account and hence his interest earned on saving accounts was below Rs. 10,000 and thus became completely tax-exempt.
As interest on FDs is fully taxable, post-tax Mr. Sharma’s return was reduced to just 6.3 %( after 30 % IT deduction).
Post-tax, Mr. Verma got .7 % higher return than Mr. Sharma.

What is the significance of section 80 TTA?

We have seen how Mr. Verma availed the benefits of section 80 TTA by depositing Rs. 1.4 lakh in a saving account which offered a coupon rate of 7%.
What is intriguing to see how much return a Fixed Deposit should offer so that post-tax return should be same as what Mr. Verma got; and the answer is whopping 10 % and at present no bank is offering that much return on FDs.
Morale of this story is- for smaller amounts one should avail 80 TTA efficiently so that post-tax returns from saving account could beat the FD returns.
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