http://www.team-bhp.com/web/index.php?categoryid=13&p2_articleid=25
Although this is a controversial topic, we stand by the opinions of the manufacturers – after all, who knows your engine better than the company that made it? There are good reasons most manufacturers ask you to take it easy during the initial running period. Call us conservative, but we recommend the tried and tested method. The moving parts of your new engine need an adjustment period before reaching normal operating conditions, and these conditions are determined by how the engine has been run-in. The run-in involves settling the piston rings and ensuring that the bearings and cylinders wear evenly, but it’s not only the engine that needs a running-in. The transmission, tyres and brakes all benefit from it too.
• We recommend that you warm up the engine before putting it under any load.
• A 2,500 km running-in period is ideal. After this, you can high-rev her away to glory.
• For a petrol engine do not allow the RPMs to go over 2,500 for the first 1,000 km. After that, you can increase the limit to 3,000 RPMs until 1,500 km and then gradually increase it to the maximum by 2,500 km.
• Long highway trips or time spent in bumper-to-bumper traffic is bad for the run-in process. The key to the run-in is to subject the engine to a wide range of RPMs, so you will probably have to alter your driving style and make a point of driving under various conditions.
• Team-BHP recommends that you change your engine oil after the first 1,000 km. As with all new engines, you will find that some metal slivers have found their way into the oil. From this point onward you can stick to the manufacturer recommended intervals.
• Do not use synthetic oil for the first 10,000 km. The impressive lubrication properties of synthetic oil only slow the run-in process.
By following these simple steps you can help ensure that your engine reaches its maximum performance and endurance condition. This will maximize you car’s power, fuel economy and engine life. Many new cars are designed to minimize damage from a poor running-in, but even these engines benefit from the advantages of a proper run-in regime.
Musings by Dr Aarti
Tuesday, December 14, 2010
Saturday, November 6, 2010
http://money.outlookindia.com/article.aspx?87530
Should borrowing be only a last-resort option to raise money?
AMONG THE many questions that clients raise with a tax consultant, one of the most common is: "I need funds for such and such purpose. Given the fact that loans are available, should I borrow or would it be better to encash my investments and raise the money?" Tough decision on the face of it, but one that can easily be taken if one carefully assesses various qualitative and quantitative factors.
Among the qualitative factors, one would look at liquidity, the possibility of reinstating the investment out of future income, restrictive conditions attached to the borrowing and such like. But, of course, the crucial deciding factor will be the quantitative aspect, that is, the loss of post-tax returns from the investment and the post-tax cost of borrowing.
If the post-tax cost of borrowing is higher than the loss of post-tax returns from the investment, it’s better to disinvest your holdings, rather than borrow. If, on the other hand, the post-tax returns from the investment are higher than the post-tax cost of borrowing, it’s a better option to take a loan, than encash your investments.
Post-tax edge. So how does one compute the post-tax rate of returns and post-tax cost of borrowing? In computing the post-tax rate of returns or the cost of borrowing, one has to first compute the annualised rate of return or the cost of borrowing, and then adjust it for tax payments or savings.
To understand this better, let us consider a simple computation in a situation where an individual wants to buy a residential house for Rs 15 lakh. Let’s say he has Rs 5 lakh in hand, Public Provident Fund (PPF) investments that he can withdraw to the extent of Rs 10 lakh and company deposits of Rs 10 lakh that yield 11 per cent per annum compounded quarterly.
So, he has three options.
Option I: he can withdraw Rs 10 lakh from his PPF account.
Option II: he can break his company deposits, but in doing so, he will incur a penalty of 1 percentage point for premature encashment.
And Option III: he can take a home loan from a housing finance company at the rate of 11.5 per cent per annum (payable in equated monthly instalments with monthly reductions in the principal amount).
In the last case, he will have to pay a processing fee of 2 per cent of the amount of the loan.
Option I. In the case of the Public Provident Fund, after the recent reduction in interest rates on small savings, it will yield a return of 9 per cent per annum. Since this interest is paid annually, and there is no charge for withdrawals, the effective rate of return is equal to the coupon rate. Besides, since this interest payment is not taxable, this will be the post-tax rate of return as well.
Option II. At a rate of 11 per cent per annum compounded quarterly (2.75 per cent per quarter), the effective yield is 11.46 per cent. Since we are computing the loss of post-tax interest that arises due to disinvestment, we will also have to factor in the penalty for premature encashment.
The real rate of interest that has been lost due to premature encashment will, therefore, have to be computed by deducting the percentage of the penalty from 100, and dividing the annualised rate of return by this figure. In this case, by dividing 11.46 by 99 (100-1), the adjusted annualised rate of interest will be 11.58 per cent. Since this interest would have been taxable, and as the premature payment penalty would also be tax-deductible, this rate of interest will have to be discounted by 31.5 per cent (30 per cent plus surcharge of 5 per cent, which is the marginal tax rate applicable to the house buyer). Thus, the post-tax loss of interest would be 7.93 per cent.
Option III. In the case of the home loan, by compounding the monthly interest payable, the annualised rate of interest works out to 12.13 per cent. If we factor in the processing charge, we can deduct the charge of 2 per cent from the total loan amount (that, 100 per cent) to arrive at a net borrowing of 98 per cent. The adjusted annualised rate of interest thus works out to 12.37 per cent.
Since interest paid on housing loans is tax-deductible, this payment needs to be discounted by 31.5 per cent, giving us a cost of 8.48 per cent. The rebate available on the repayment of the principal amount of the housing loan will also need to be factored in. Since the rebate is available at the rate of 20 per cent to the extent of repayments of Rs 20,000 each year, and the rebate is to be computed before surcharge, the effective tax saving would be Rs 4,200 each year. On an average outstanding loan of Rs 5 lakh, the effective percentage of rebate works out to about 0.84 per cent. Thus, the post-tax cost of the housing loan from the finance company will be about 7.64 per cent (8.48 per cent minus 0.84 per cent).
What’s beneficial? Comparing the options we find that the post-tax cost of the loan is lower than the post-tax loss of interest in the case of the company deposits or PPF. And so, an individual will be better off taking a home loan to buy a house, rather than encashing either the PPF or the company deposits. If, however, the individual does opt to encash some investments, the company deposits are a better option than the PPF, since the loss of interest is of a lesser magnitude.
In the case that we have taken up, since the loan was being taken to buy a residential house, the interest was tax-deductible. Therefore, before you take a loan it makes sense to take a look at how you are going to utilise the borrowing and whether the interest is deductible for tax purposes. There may be many instances where interest will not be deductible for tax purposes. In such cases, the effective cost of the borrowing is generally far more than the rate of return that one could earn on most investments, and borrowings may, therefore, not be cost-effective.
The computation in the case we have looked at assumes that the eligible deductions on interest repayments and rebates on principal will continue to be available, and that the rates of interest will remain unchanged. In real-life situations, you will need to consider the prevailing tax laws and rates of interest to arrive at your best-case scenarios.
Of course, one can always use other similar methods of computation to compare the merits of various investments. Although other methods such as internal rate of return or net present value of cash flows are often superior decision-making tools, this method offers a simple and quick comparison for a person who is not a finance professional.
Should borrowing be only a last-resort option to raise money?
AMONG THE many questions that clients raise with a tax consultant, one of the most common is: "I need funds for such and such purpose. Given the fact that loans are available, should I borrow or would it be better to encash my investments and raise the money?" Tough decision on the face of it, but one that can easily be taken if one carefully assesses various qualitative and quantitative factors.
Among the qualitative factors, one would look at liquidity, the possibility of reinstating the investment out of future income, restrictive conditions attached to the borrowing and such like. But, of course, the crucial deciding factor will be the quantitative aspect, that is, the loss of post-tax returns from the investment and the post-tax cost of borrowing.
If the post-tax cost of borrowing is higher than the loss of post-tax returns from the investment, it’s better to disinvest your holdings, rather than borrow. If, on the other hand, the post-tax returns from the investment are higher than the post-tax cost of borrowing, it’s a better option to take a loan, than encash your investments.
Post-tax edge. So how does one compute the post-tax rate of returns and post-tax cost of borrowing? In computing the post-tax rate of returns or the cost of borrowing, one has to first compute the annualised rate of return or the cost of borrowing, and then adjust it for tax payments or savings.
To understand this better, let us consider a simple computation in a situation where an individual wants to buy a residential house for Rs 15 lakh. Let’s say he has Rs 5 lakh in hand, Public Provident Fund (PPF) investments that he can withdraw to the extent of Rs 10 lakh and company deposits of Rs 10 lakh that yield 11 per cent per annum compounded quarterly.
So, he has three options.
Option I: he can withdraw Rs 10 lakh from his PPF account.
Option II: he can break his company deposits, but in doing so, he will incur a penalty of 1 percentage point for premature encashment.
And Option III: he can take a home loan from a housing finance company at the rate of 11.5 per cent per annum (payable in equated monthly instalments with monthly reductions in the principal amount).
In the last case, he will have to pay a processing fee of 2 per cent of the amount of the loan.
Option I. In the case of the Public Provident Fund, after the recent reduction in interest rates on small savings, it will yield a return of 9 per cent per annum. Since this interest is paid annually, and there is no charge for withdrawals, the effective rate of return is equal to the coupon rate. Besides, since this interest payment is not taxable, this will be the post-tax rate of return as well.
Option II. At a rate of 11 per cent per annum compounded quarterly (2.75 per cent per quarter), the effective yield is 11.46 per cent. Since we are computing the loss of post-tax interest that arises due to disinvestment, we will also have to factor in the penalty for premature encashment.
The real rate of interest that has been lost due to premature encashment will, therefore, have to be computed by deducting the percentage of the penalty from 100, and dividing the annualised rate of return by this figure. In this case, by dividing 11.46 by 99 (100-1), the adjusted annualised rate of interest will be 11.58 per cent. Since this interest would have been taxable, and as the premature payment penalty would also be tax-deductible, this rate of interest will have to be discounted by 31.5 per cent (30 per cent plus surcharge of 5 per cent, which is the marginal tax rate applicable to the house buyer). Thus, the post-tax loss of interest would be 7.93 per cent.
Option III. In the case of the home loan, by compounding the monthly interest payable, the annualised rate of interest works out to 12.13 per cent. If we factor in the processing charge, we can deduct the charge of 2 per cent from the total loan amount (that, 100 per cent) to arrive at a net borrowing of 98 per cent. The adjusted annualised rate of interest thus works out to 12.37 per cent.
Since interest paid on housing loans is tax-deductible, this payment needs to be discounted by 31.5 per cent, giving us a cost of 8.48 per cent. The rebate available on the repayment of the principal amount of the housing loan will also need to be factored in. Since the rebate is available at the rate of 20 per cent to the extent of repayments of Rs 20,000 each year, and the rebate is to be computed before surcharge, the effective tax saving would be Rs 4,200 each year. On an average outstanding loan of Rs 5 lakh, the effective percentage of rebate works out to about 0.84 per cent. Thus, the post-tax cost of the housing loan from the finance company will be about 7.64 per cent (8.48 per cent minus 0.84 per cent).
What’s beneficial? Comparing the options we find that the post-tax cost of the loan is lower than the post-tax loss of interest in the case of the company deposits or PPF. And so, an individual will be better off taking a home loan to buy a house, rather than encashing either the PPF or the company deposits. If, however, the individual does opt to encash some investments, the company deposits are a better option than the PPF, since the loss of interest is of a lesser magnitude.
In the case that we have taken up, since the loan was being taken to buy a residential house, the interest was tax-deductible. Therefore, before you take a loan it makes sense to take a look at how you are going to utilise the borrowing and whether the interest is deductible for tax purposes. There may be many instances where interest will not be deductible for tax purposes. In such cases, the effective cost of the borrowing is generally far more than the rate of return that one could earn on most investments, and borrowings may, therefore, not be cost-effective.
The computation in the case we have looked at assumes that the eligible deductions on interest repayments and rebates on principal will continue to be available, and that the rates of interest will remain unchanged. In real-life situations, you will need to consider the prevailing tax laws and rates of interest to arrive at your best-case scenarios.
Of course, one can always use other similar methods of computation to compare the merits of various investments. Although other methods such as internal rate of return or net present value of cash flows are often superior decision-making tools, this method offers a simple and quick comparison for a person who is not a finance professional.
Thursday, September 9, 2010
Misc Transaction
INSERT
INTO mtl_transactions_interface(
transaction_interface_id
, Source_code
, source_header_id
, source_line_id
, process_flag
, transaction_mode
, item_segment1
, inventory_item_id
, organization_id
, distribution_account_id
, subinventory_code
, transaction_uom
, transaction_date
, transaction_type_id
, transaction_quantity
, creation_date
, created_by
, last_update_date
, last_updated_by
)
SELECT MTL_MATERIAL_TRANSACTIONS_S.nexval transaction_interface_id
, 'Costing/Non-costing adjustment' Source_code
, 199 source_header_id
, 199 source_line_id
, -9 process_flag
, 3 transaction_mode
, msi.segment1 item_segment1
, msi.inventory_item_id inventory_item_id
--, ood.organization_code
, ood.organization_id
, DECODE(ood.set_of_books_id,1,50066,NULL) distribution_account_id
, moq.subinventory_code
, moq.transaction_uom_code transaction_uom
, TRUNC(SYSDATE) transaction_date
, 32 transaction_type_id -- issue 42--receipt
, SUM(moq.transaction_quantity) transaction_quantity
, SYSDATE
, 17879
, SYSDATE
, 17879
FROM mtl_system_items msi
, mtl_onhand_quantities_detail moq
, org_organization_definitions ood
WHERE msi.organization_id = 2
AND moq.inventory_item_id = msi.inventory_item_id
AND ood.organization_id = moq.organization_id
AND msi.segment1 IN ('TSTITM')
GROUP BY msi.segment1
, msi.inventory_item_id
--, ood.organization_code
, ood.organization_id
, ood.set_of_books_id
, moq.subinventory_code
, moq.transaction_uom_code
INTO mtl_transactions_interface(
transaction_interface_id
, Source_code
, source_header_id
, source_line_id
, process_flag
, transaction_mode
, item_segment1
, inventory_item_id
, organization_id
, distribution_account_id
, subinventory_code
, transaction_uom
, transaction_date
, transaction_type_id
, transaction_quantity
, creation_date
, created_by
, last_update_date
, last_updated_by
)
SELECT MTL_MATERIAL_TRANSACTIONS_S.nexval transaction_interface_id
, 'Costing/Non-costing adjustment' Source_code
, 199 source_header_id
, 199 source_line_id
, -9 process_flag
, 3 transaction_mode
, msi.segment1 item_segment1
, msi.inventory_item_id inventory_item_id
--, ood.organization_code
, ood.organization_id
, DECODE(ood.set_of_books_id,1,50066,NULL) distribution_account_id
, moq.subinventory_code
, moq.transaction_uom_code transaction_uom
, TRUNC(SYSDATE) transaction_date
, 32 transaction_type_id -- issue 42--receipt
, SUM(moq.transaction_quantity) transaction_quantity
, SYSDATE
, 17879
, SYSDATE
, 17879
FROM mtl_system_items msi
, mtl_onhand_quantities_detail moq
, org_organization_definitions ood
WHERE msi.organization_id = 2
AND moq.inventory_item_id = msi.inventory_item_id
AND ood.organization_id = moq.organization_id
AND msi.segment1 IN ('TSTITM')
GROUP BY msi.segment1
, msi.inventory_item_id
--, ood.organization_code
, ood.organization_id
, ood.set_of_books_id
, moq.subinventory_code
, moq.transaction_uom_code
Wednesday, September 8, 2010
User Responsibility
SELECT DISTINCT u.user_name, wur.role_orig_system_id responsibility_id
, wura.start_date, wura.end_date end_date, wura.created_by created_by
, wura.creation_date creation_date, wura.last_updated_by last_updated_by
, wura.last_update_date last_update_date
, wura.last_update_login last_update_login
, wura.assignment_reason description
, res.responsibility_name
FROM fnd_user u
, wf_user_role_assignments wura
, wf_all_user_roles wur
, fnd_responsibility_tl res
WHERE u.user_name = wura.user_name
AND wura.relationship_id = -1
AND wur.role_orig_system = 'FND_RESP'
AND NOT wura.role_name LIKE 'FND_RESP|%|ANY'
AND wura.role_name = wur.role_name
AND wura.user_name = wur.user_name
AND res.responsibility_id = wur.role_orig_system_id
AND u.user_id = 17879
--AND wur.role_orig_system_id IN ( 53721, 53741 )
, wura.start_date, wura.end_date end_date, wura.created_by created_by
, wura.creation_date creation_date, wura.last_updated_by last_updated_by
, wura.last_update_date last_update_date
, wura.last_update_login last_update_login
, wura.assignment_reason description
, res.responsibility_name
FROM fnd_user u
, wf_user_role_assignments wura
, wf_all_user_roles wur
, fnd_responsibility_tl res
WHERE u.user_name = wura.user_name
AND wura.relationship_id = -1
AND wur.role_orig_system = 'FND_RESP'
AND NOT wura.role_name LIKE 'FND_RESP|%|ANY'
AND wura.role_name = wur.role_name
AND wura.user_name = wur.user_name
AND res.responsibility_id = wur.role_orig_system_id
AND u.user_id = 17879
--AND wur.role_orig_system_id IN ( 53721, 53741 )
Request Set Details
SELECT rs.request_set_name
, rs.user_request_set_name
, rss.stage_name
, rss.user_stage_name
, rss.display_sequence
, rss.success_link_name
, rss.warning_link_name
, c.concurrent_program_name
, c.user_concurrent_program_name
, e.executable_name
, e.execution_method_code
, e.execution_file_name
FROM fnd_concurrent_programs_vl c
, fnd_executables e
, fnd_request_set_programs rsp
, fnd_req_set_stages_form_v rss
, fnd_request_sets_vl rs
WHERE c.executable_id = e.executable_id
AND rsp.concurrent_program_id = c.concurrent_program_id
AND rsp.request_set_id=rs.request_set_id
AND rsp.request_set_stage_id=rss.request_set_stage_id
AND rss.request_set_id=rs.request_set_id
AND rs.request_set_name = 'FNDRSSUB1128'
ORDER BY rss.display_sequence
, rs.user_request_set_name
, rss.stage_name
, rss.user_stage_name
, rss.display_sequence
, rss.success_link_name
, rss.warning_link_name
, c.concurrent_program_name
, c.user_concurrent_program_name
, e.executable_name
, e.execution_method_code
, e.execution_file_name
FROM fnd_concurrent_programs_vl c
, fnd_executables e
, fnd_request_set_programs rsp
, fnd_req_set_stages_form_v rss
, fnd_request_sets_vl rs
WHERE c.executable_id = e.executable_id
AND rsp.concurrent_program_id = c.concurrent_program_id
AND rsp.request_set_id=rs.request_set_id
AND rsp.request_set_stage_id=rss.request_set_stage_id
AND rss.request_set_id=rs.request_set_id
AND rs.request_set_name = 'FNDRSSUB1128'
ORDER BY rss.display_sequence
Monday, August 30, 2010
ADD Responsibility
fnd_user_resp_groups_api.insert_assignment(
user_id => 17879,
responsibility_id => 51661,
responsibility_application_id => 660,
security_group_id => 0,
start_date => SYSDATE,
end_date => NULL,
description => 'Order Management Super User')
user_id => 17879,
responsibility_id => 51661,
responsibility_application_id => 660,
security_group_id => 0,
start_date => SYSDATE,
end_date => NULL,
description => 'Order Management Super User')
VAASTU - Living room
http://www.amitlamba.com/vastu-mumbai-free-tips-home-apartment.html
http://www.gharexpert.com/articles/Drawing-Room-1058/Vastu-Living-Room_0.aspx
http://www.vastushastraguru.com/vastu-remedies-north-east-kitchen/
According to Vastu Shastra living room or drawing room should be located in east or north direction. The ideal location of a living room depends on plot facing. The living room can be in northeast direction for east and north facing house. The living room can be in northwest for west facing house. In south facing house, living room can be in southeast.
Where to Place Furniture as per Vastu
The furniture should be placed in west or south direction. The furniture such as showcase or heavy articles etc. should be in south or west direction. It should be rectangular or square, not in oval, circular or odd shape.
Television, A.C and Telephone Place according to Vastu
T.V. should be placed in southeast direction. Living room vastu opposes to place T.V. in north-east or south-west corner.
Cooler or A.C should be placed in west or north direction. Avoid A.C or Cooler in southeast and northwest. Telephone should be placed in East, North or south-east. It should not be in south-west or the north-west corners.
Aquarium Placement as per Vastu Directions
Aquariums are beneficial to place in the North, East and North-East of living room. The faults related to north-west corner can be corrected by putting an aquarium. Avoid aquarium in south direction as it draws out positive energies from house.
Painting and Pictures according to Vastu
The use of painting can create a pleasant environment in the room. Painting of waterfall, rising sun provides positive energy. Avoid paintings that symbolize death, violence and negative aspects of life.
Vastu Color Scheme
The color of wall in living room should be white, yellow, blue or green. Prefer light color over dark colors. Avoid black and red color in living room.
Vastu and Lighting
Lighting of living room should be bright. If chandelier is in living room, it should be slightly towards west, not at the centre of the room.
Vastu for Doors and Windows
The door of living room should be in east or north direction because doors are very auspicious in these directions. There should not be a photograph of any God in living room or at entrance door. Windows in east and north are beneficial.
Vastu Tips for Living Room
The East and North are best directions for living room.
The furniture should be square or rectangular.
Air-conditioner or cooler should be placed in West direction, not in South-east.
Portraits of women, animals, birds, scene of war should never be displayed in living room.
The sitting arrangement for the head of family should be in East or North direction.
A painting showing depression should not be placed on a wall.
http://www.gharexpert.com/articles/Drawing-Room-1058/Vastu-Living-Room_0.aspx
http://www.vastushastraguru.com/vastu-remedies-north-east-kitchen/
According to Vastu Shastra living room or drawing room should be located in east or north direction. The ideal location of a living room depends on plot facing. The living room can be in northeast direction for east and north facing house. The living room can be in northwest for west facing house. In south facing house, living room can be in southeast.
Where to Place Furniture as per Vastu
The furniture should be placed in west or south direction. The furniture such as showcase or heavy articles etc. should be in south or west direction. It should be rectangular or square, not in oval, circular or odd shape.
Television, A.C and Telephone Place according to Vastu
T.V. should be placed in southeast direction. Living room vastu opposes to place T.V. in north-east or south-west corner.
Cooler or A.C should be placed in west or north direction. Avoid A.C or Cooler in southeast and northwest. Telephone should be placed in East, North or south-east. It should not be in south-west or the north-west corners.
Aquarium Placement as per Vastu Directions
Aquariums are beneficial to place in the North, East and North-East of living room. The faults related to north-west corner can be corrected by putting an aquarium. Avoid aquarium in south direction as it draws out positive energies from house.
Painting and Pictures according to Vastu
The use of painting can create a pleasant environment in the room. Painting of waterfall, rising sun provides positive energy. Avoid paintings that symbolize death, violence and negative aspects of life.
Vastu Color Scheme
The color of wall in living room should be white, yellow, blue or green. Prefer light color over dark colors. Avoid black and red color in living room.
Vastu and Lighting
Lighting of living room should be bright. If chandelier is in living room, it should be slightly towards west, not at the centre of the room.
Vastu for Doors and Windows
The door of living room should be in east or north direction because doors are very auspicious in these directions. There should not be a photograph of any God in living room or at entrance door. Windows in east and north are beneficial.
Vastu Tips for Living Room
The East and North are best directions for living room.
The furniture should be square or rectangular.
Air-conditioner or cooler should be placed in West direction, not in South-east.
Portraits of women, animals, birds, scene of war should never be displayed in living room.
The sitting arrangement for the head of family should be in East or North direction.
A painting showing depression should not be placed on a wall.
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