2013 Overview: Business Sectors in India

India's voyage on the trail of economic improvement has renovated it to one of the world's fastest growing economies. With opportunities comes challenges and India has come through a long way overcoming these challenges. As we approach the New Year and look forward to novel opportunities, let us take a quick review of the developments Indian economy progressed in the year 2012.

1. Retail

The retail sector in India is mounting at an exceptional velocity. According to the Global Retail Development Index 2012, India lines fifth amid the top 30 promising markets for retail, few among them are UAE, Russia, Indonesia and Saudi Arabia. The leverage by the Indian government with Foreign Direct Investment (FDI) in retail, particularly allowing 100 per cent FDI in single brands and multi-brand FDI has shaped optimistic attitude in the retail sector. From April 2000 till September 2012 the FDI inflows stood at U.S. $ 42.70 million according to Department of Industrial Policy and Promotion (DIPP).

2. Infrastructure

India's infrastructure development has been exponential over the years. The Union Ministry of Commerce and Industry released data that the infrastructure industry combined of, petroleum refinery products, coal, electricity, cement, steel, fertilizers and natural gas etc cover around 37.90 percent of the Index of Industrial Production.

The Planning Commission has proposed that investment in infrastructure would almost twice at U.S. $ 1,025 billion in the Twelfth Five Year Plan (2012-17), compared to U.S.$ 514 billion in the Eleventh Plan out of which 50 percent of the investment is expected to come from private sector. Goldman Sachs, the investment banking company said that India's infrastructure industry will require U.S. $ 1.7 trillion investment in the next 10-years. This year the government also approved licensing of land for Public Private Partnership, PPP projects at 12 major ports of India.

3. Agriculture

India's agricultural growth for the 2012 was quiet progressive. According to the National Council of Applied Economic Research (NCAER), the Gross Domestic Product rise in agriculture is forecast at 3 percent for the next year. India's food grain production is projected to grow by 0.6 percent to 247.6 million tonnes in 2012-13 as against 246.2 million tonnes in 2011-12.

A modest growth in output of rice and wheat along with a recovery in production of coarse grains and pulses will be responsible for the overall growth, Centre for Monitoring Indian Economy (CMIE) said, reports PTI. The rice production is projected to exceed 100 million tonnes in 2012-13, while wheat production is pegged at 87.3 million tonnes. The production of coarse grains is projected to rise by 0.7 percent to 42.3 million tonnes in 2012-13. As the meteorological department has predicted a normal monsoon in 2012, the overall agriculture sector did well, but the major crop production is projected to decline by 0.6 percent in 2012-13 due to lower output of cotton and sugarcane production. However, major oilseeds production is expected to grow by three percent in 2012-13. Higher production of groundnuts, safflower and sunflower seeds is expected to drive the growth.

4. Power

The Power & Energy Infrastructure sector in India is hovering for a foremost lift-off. The APDRP, Accelerated Power Development & Reforms Programme 2002 – 2012, has witnessed an adding up of around 22,000 MW throughout last five years. And capacities add up of over 78,000 MW was setup by 2012. Though the country faced a massive power cut for two consecutive days which included 19 cities along with Delhi but it is not expected any more.

The 14th International Exhibition and Conference, Power India 2012 highlighted that the market potential to uphold the GDP growth rate of India @ 8 percent plus per annum requirements the power sector to grow at 1.8 - 2 times the GDP rate of growth as espoused by economists, planners and industry experts. This would signify a YOY capacity totalling of 18,000 - 20,000 MW to attain this determined plan of moving India to a Developed Economy status, as an Economic Global Powerhouse.

5. Information Technology

The IT division has been India's sunbeams sector for quite a time now. The industry has contributed significantly to altering India's picture from a sluggish developing economy to a worldwide player in providing world class technology results. According to the IBEF (India Brand Equity Foundation) figures, the Indian IT industry is set to touch $225 billion by 2020.

Year 2012 witnessed a massive growth of 7.5 percent in the IT sector which was mere 1.2 percent in 1998. According to NASSCOM, the IT–BPO sector in India aggregated revenues of US$100 billion in FY2012, whereas export and domestic revenue summed up at U.S. $69.1 billion and U.S $31.7 billion. The Information Technology industry’s share increased to 25 percent of the total Indian Exports in the year 2012. The Information Technology sector is also a huge provider of employment in the Indian economy and around 230,000 jobs were provided in the Financial Year 2012.

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10 Ideas that Earned $100 Million

Most of the people you talk with may surprise you with an idea for a business that can probably make millions. Though it is relatively tough to make an idea work, many of the established businessmen of the day had a simple idea and had a humble beginning. And now they have turned their ideas effectively to success mantras.

You might be well familiar with the winning stories of Bill Gates, Larry Ellison and Mark Zuckerberg who have cashed their ideas. But what it takes exactly to make $100 million? You are going to be stunned!

Michelle Fox of CNBC, here comes with 10 successful biz-people and their simple but innovative ideas that made $100 million or more for them.

#1 Firehouse Subs

Master Brains: Chris and Robinson Sorensen

Originally, both Chris Sorensen and Robin Sorensen were firefighters working in Florida. On their family’s 200 year history of fighting fires, they came up with a different idea of opening up a sandwich shop; and the brothers borrowed on a credit card that belonged to Robin’s in-laws and opened their first shop.

The shop was decorated with fire equipment and a mural painting that depicted the local fire department. They even named their subs “Hook & Ladder” and “Engine Company”, inspired by their firefighter origin.

Though they opened their store, they didn’t want to stop fighting fires. Thus, Robin worked at the shop while Chris continued with firefighting.

From those days, they never turned back. The total turnover of Firehouse Subs owned by the Sorensens is $284.9 million as of 2011.The Firehouse Subs is now an established franchise business, with 514 corporate and franchise locations across the United States; and the company is having plans to expand their business to the Northeast, Central and Southwest in the current year.

#2 Two Men and a Truck

Master Brain: Mary Ellen Sheets

Mary Ellen Sheets before starting the Two Men and a Truck could never even imagine that mere taking away of the waste could be made a multi-million dollar business. In the early 1980s, Sheets’ sons, Jon and Brig Sorber used to do odd jobs for the locality like to haul trash and brush from people’s yard and moving furniture using their truck.

On one occasion, when the two sons were not at home, an order came and the mother had to hire two men and another truck for $350 to accomplish the job. Gradually she made it her hobby and in the late ‘80s she quit her job to offer full-time focus on the new business. And soon after, she decided to franchise her company.

Presently, Two Men and a Truck has 224 branches in 34 states in United States. When Brig Sorber replaced his mom as CEO, Sheets remained in the Board of Directors and Jon Sorber is also serving as an executive.  In the year 2011, the company could conduct 353,761 moves and could have total sales of $220 million.

#3 Life is Good

Master Brains: Bert and John Jacob

Bert Jacob and John Jacob started their business at the streets of Boston and at various colleges along the East Coast in 1989. They designed t-shirts and during the first days of selling they could not make any big bangs till 1994. It was then, they thought of using a cartoon character, “Jake” and the motto “Life is Good” on their t-shirts.

They didn’t do anything great; but this rather simple optimistic message got accepted and it became a hit in a local street fair. A retailer got interested in their product and offered a deal. Since that day, the Life is Good t-shirts fetch new heights.

Now we can find Jake’s face and the motto on many other products as well other than on t-shirts. We see him smiling on products from towels to coffee mugs and the motto has made the life good for the Jacob brothers. Today, their business is booming with 2011 sales closing at about $100 million.

#4 Spanx

Master Brain: Sara Blakely

It was luck that the idea for a new business struck Sara Blakely. One night, she cut off the bottom of her pantyhose, thus, the idea of Spanx was born. With only $5,000 in hand Blakely researched and wrote her patent for footless pantyhose.

Her next challenge was to get mill owners to make her product under her brand massively. She went in search for them along North California and most of them showed their ill hope that the product will never sell. But she couldn’t stop herself, as her hopes were still strong. Finally one mill owner decided to take a chance and helped her turn her “crazy idea” solid.

In 2000, she further made perfections in her product and started hitting up high-end department store buyers. In the first three months of the year recorded with a sale of over 50,000 pairs. And gradually she expanded her business to include a full range of products under the brand name that are now sold across the world. And what more! She landed on the Forbes World’s Billionaires 2012 list, with estimated revenue just under $250 million.

#5 myYearbook

Master Brains: Geoff, Dave and Catherine Cook

It was to the siblings Dave and Catherine Cook, the idea of an online yearbook struck first, that too they wanted it for meeting with their new friends in the high school realm. To make a start they sought the help of their brother, Geoff Cook, who was already a businessman in the college.

Thus, Geoff became the first investor and CEO of myYearbook in 2005 and within nine months the site had 1 million users. When the siblings saw that the company was growing, they expanded their site, connecting people in general. 

Later in November 2011, the social networking site Quepasa bought myYearbook for $100 million in cash and stock and in June the same year it got rebranded as MeetMe. All three siblings are still working at the company, with Geoff Cook as the Chief Operating Officer. By the merger with Quepasa, the number of users grew from the 40 million to 80 million.

#6 Pillow Pets

Master Brain: Jennifer Telfer

As it happens in every household, Jennifer Telfer used to love watching her sons play. One day when she watched her sons smashing down their stuffed soft toys in order to sleep on them like on a pillow, the idea tickled her. She without any second thought decided to start her new business of creating stuffed animals, toys that could be unfolded into luxury pillows.

Later in the year 2003, the Telfer couple decided to wholesale the product themselves through their already existing company, C J Products. During the holiday season, they started to hawk their product at a mall kiosk in order to market the same. They later christened their new business venture as Pillow Pets. By the end of the year 2003, they were nearly sold out, as Jennifer introduced Pillow Pets at a home show. The business of this cute toy-cum-pillow has been flourishing since then. As of 2010 the revenue of the company has reached $300 million.

#7 Tom’s of Maine

Master Brains: Tom and Kate Chappel

In 1968, Tom and Kate Chappel moved to Maine in order to have a more simplified life. There they found it difficult to have natural, unprocessed food and other products. As it is said, ‘necessity is the mother of invention', they decided to create and sell what they were looking for themselves.

They started their new business Tom’s of Maine in 1970, boorowing $5,000; manufacturing and selling from natural shampoo and personal care products to natural food products. Their breakthrough, which was yet to hit, came five years later when they launched their now leading product, Tom’s of Maine toothpaste.

In the year 1999, the sales of Tom’s of Maine surpassed $40 million. In 2006 Colgate Palmolive bought 84 percent of the company stock for $100 million. The Chapels didn't rest tired as they have started recently their new business venture, Rambler’s Way Farm. The new company manufactures wool garments.

#8 Boston Beer Company

Master Brain: Jim Koch

It is better to say, Jim Koch had beer in his blood. His father was a fifth-generation brewer, but Jim left the family business when he found that some of the big names in the brewer business is taking over the market.

Later, he observed that people are starving for something different and he went in search of his roots. He left his job as management consultant, returning to the family business. What he first looked for was the recipe that his great-great grandfather had in his treasure and then he started brewing beer in his kitchen.

Once he perfected his sample brew, he went door to door to Boston bars trying to sell Samuel Adams Boston Beer Larger. Today, Boston Beer Company is the largest craft beer brewer, with over 30 different beer styles.

The highlight of his product is that it still uses all-natural incredients, which Koch himself travels around the world to hand-select, and it employs traditional brewing methods. The company had $513 million in net revenue in the year 2011.

#9 K’NEX

Master Brain: Joel Glickman

In a wedding party, the 50 years old Joel Glickman, sitting at a table, started cutting and connecting a bunch of straws together. Who would imagine that the very moment Joel got an inspiration for a new business? But in fact his creation gave him an idea for a plastic construction toy business (He was already working with his family plastic business).

This idea became an obsession in him, which was criticized by his family in the beginning. But, anyhow, he decided to go on with his idea. He took a huge risk shutting down part of the family’s injection molded plastic business to make the construction toys.

Soon after K’NEX hit the market, in 1993, the founder of Toys R Us said it was the best thing he’d seen in years. Just four years after this the toy business grew just below $100 million. Though retired now, Glickman goes back to business whenever it suffered to make it stronger. 

#10 1-800-FLOWERS.COM

Master Brain: Jim McCann

When Jim McCann bought a flower shop for $10,000 in 1976, he was only a bartender and a social worker looking for a way to increase his income. After buying the flower shop, he could built 13 more shops in the New York metropolitan area.

But it was not until he acquired the 1-800-FLOWERS phone number in 1986 that his business really could bloom. His flower company was the first in the line to add an 800-telephone number in its name and the very simple marketing idea could lead the company to huge profits.

He also found that technology is the only thing that could buy attention in the coming years and he seized on the internet as an opportunity as early as 1991. In 1999, 1-800-FLOWERS went public online with a ‘.COM’ added to its name. The company further got expanded by the acquiring of companies like Popcorn Factory and Fannie May. And as of 2011, the total revenue of the company is reported as $689.8 million.

 

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Top 10 Countries to Do Business In

The most important decision the business organization has to make is while choosing the business location. It requires good research and better planning. The countries with the best economies will suite good for any business entity to set up an establishment there. This process also includes a lot of other factors like demographics, supply chain, competition, budget, state laws and taxes, etc.

Here’s a look at the top 10 best countries to do business as by Forbes

1. New Zealand

Over the last two decades, New Zealand has been transformed into a more industrialized and a free market economy, from a pre-industrial economy which was more over dependent on the British market access. Now it has become more global. This dynamic growth has boosted real incomes, also has very much broadened and deepened the technological capabilities of the industrial sector.

GDP Growth: 1.4 percent
GDP/Capita: $39,300
Trade Balance: (-) 4.4 percent
Population: 4.3 M
Public Debt as percent of GDP: 36 percent
Unemployment: 6.5 percent
Inflation: 4 percent

2. Denmark

This is a complete modern market economy. This economy also features a high-tech agricultural sector, state-of-the-art industry with world-leading firms in pharmaceuticals, maritime shipping and renewable energy, and a high dependence on foreign trade.

Denmark is a member of the Danish legislation and the European Union (EU). Denmark is one amongst the efficient backbones for trade liberalization. And this country is good exporter of F&B services and products.

GDP Growth: 1.1 percent
GDP/Capital: $59,684
Trade Balance: 6.5 percent
Population: 5.5 M
Public Debt as percent of GDP: 44 percent
Unemployment: 6 percent
Inflation: 2.8 percent

3. Hong Kong

Hong Kong has been a free-market economy. This country is indeed highly indigent on world-wide trade and finance. The value of the goods and services is about four times the value of the GDP. A global economic deceleration has started from the year 2008 because of Hong Kong’s open and free-market economy.

GDP Growth: 5.0 percent
GDP/Capita: $34,457
Trade Balance: 3.9 percent
Population: 7.2 M
Public Debt as percent of GDP: 30 percent
Unemployment: 3.4 percent
Inflation: 5.3 percent

4. Singapore

Singapore has been a developed and a successful open economy. It has also been a free market economy. Singapore is a 99 percent corruption free. GDP of most of the developed countries is much lower than the stable prices and the per capita GDP of this country.  Singapore mainly depends on exports, especially in electronics, IT products and pharmaceuticals. The financial services sector is also booming up in Singapore.

GDP Growth: 4.9 percent
GDP/Capita: $46,241
Trade Balance: 23.8 percent
Population: 5.4 M
Public Debt as percent of GDP: 118 percent
Unemployment: 2.0 percent
Inflation: 2.0 percent

5. Canada

Canada is indeed a wealthy economy in many aspects. The country is also a high-tech industrial society in the billion-dollar class. In terms of market-oriented economic system, different modes of production, and upscale living standards, Canada does resemble the U.S.

Ever since the World War II, the economic growth has been very impressive, especially in fields of mining, manufacturing and the services sector. It has definitely changed the country from a heavily rural economy into a big time industrial and urban Hub.

GDP Growth: 2.5 percent
GDP/Capita: $50,345
Trade Balance: (-)2.8 percent
Population: 34.3 M
Public Debt as percent of GDP: 87 percent
Unemployment: 7.5 percent
Inflation: 2.9 percent

6. Ireland

Ireland is this small time yet modern economy which is completely dependents on its trade practices. Out of the whole 12 EU nations, Ireland was one among the initial countries, which began circulation on 1 January 2002. For the very first time over the previous two decades, Ireland had entered into the state of recession in 2008, with a consecutive disruption of its domestic property and also the construction markets. The property prices rose faster in Ireland than in any developed economy.

GDP Growth: 0.7 percent
GDP/Capita: $48,423
Trade Balance: 0.1 percent
Population: 4.7 M
Public Debt as percent of GDP: 105 percent
Unemployment: 14.4 percent
Inflation: 2.6 percent

7. Sweden

Sweden has indeed achieved a desirable standard of living, which working under a mixed system of high-tech industrialization and capitalism and also considerable welfare benefits. The country was aided by peace and neutrality for the whole of the 20th century.

The country has a well modern distribution channel and also a good internal and external communications system. Sweden has also been having a good and highly skilled labor force.

GDP Growth: 4.0 percent
GDP/Capita: $56,927
Trade Balance: 7.7 percent
Population: 9.1 M
Public Debt as percent of GDP: 38 percent
Unemployment: 7.5 percent
Inflation: 3.0 percent

8. Norway

Norway is a vibrant and successful mixed economy, having an active private sector, a large state sector and a boundless social subsidiary. The main areas such as the petroleum sector are controlled by the Norwegian government, through extended regulations and large-scale public owned organizations. Norway is the world's second-largest gas exporter; and seventh largest oil exporter. The country is abundantly blessed with natural resources.

GDP Growth: 1.7 percent
GDP/Capita: $ 98,102
Trade Balance: 14.5 percent
Population: 4.7 M
Public Debt as percent of GDP: 58 percent
Unemployment: 3.3 percent
Inflation: 1.3 percent

9. Finland

Finland has been a highly industrialized economy and also a highly big free-market economy. The country has a per capita GDP output roughly that of Austria, Belgium, the Netherlands, and Sweden. The Trade sector alone has been accounting of more than one third of the GDP over the past few years.

Finland has been known for the high-tech exports of mobile phones, especially Nokia. The country is very strong in the manufacturing field, like wood, metals, telecommunications and electronics. Amongst the EU nations, Finland has been one of the best performing economies.

GDP Growth: 2.9 percent
GDP/Capita: $49,391
Trade Balance: (-) 0.5 percent
Population: 5.3 M
Public Debt as percent of GDP: 49 percent
Unemployment: 7.8 percent
Inflation: 3.3 percent

10. The United Kingdom

The U.K. is the third largest country in Europe after Germany and France. The United Kingdom is a leader in trading and also excels in the financial center. Over the last 20 years, the U.K. government has to a far extent reduced public ownership and also has composed the growth of social welfare programs.

The country’s economy did enjoy the longest period of expansion on record, after coming out of the state of recession in 1992. During the same time, the growth outpaced most of the western side of Europe. But due to the economy’s importance of the financial sector, the 2008 recession crisis hit the economy really hard.

GDP Growth: 0.7 percent
GDP/Capita: $38,818
Trade Balance: (-) 1.9 percent
Population: 63 M
Public Debt as percent of GDP: 86 percent
Unemployment: 8.1 percent
Inflation: 4.5 percent

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Top 10 Movies that Rocked Bollywood in 2012

New Delhi: Action, drama, comedy or romance - you name it and Bollywood had it this year. Be it small-budget content-driven films or typical potboilers, the industry saw a great mix of movies throughout 2012.

IANS picks the best of the lot that rocked the box office:

"Ek Tha Tiger": The very fact that former real-life couple Katrina Kaif and Salman Khan were the lead pair for this film was enough to draw audiences to the theatres. Its songs, picturisation and power-packed action kept the cash registers ringing, and helping this film garner approximately 190 crore. Salman played an Indian spy named Tiger, who falls head over heels in love with a female spy from Pakistan, essayed by Katrina. Their chemistry, of course, worked.

"Rowdy Rathore": The return of 'khiladi' Akshay Kumar - that's what this film was awaited for. Akshay's action, mixed with Prabhudheva's distinct taste of dance and exaggerated jumps, gave Hindi movie buffs a perfect masala affair. The Bollywood remake of Telugu movie "Vikramarkudu", it also stared Sonakshi Sinha. The movie earned 140 crore.

"Agneepath": A remake yet again. The success ratio of remakes of past hits has been low, but"Agneepath" was a dream debut for Karan Malhotra. He added a contemporary touch to the eponymous 1990 movie. With Hrithik Roshan reprising the role of Vijay Dinanath Chauhan and Sanjay Dutt playing the villain Kaancha Cheena, "Agneepath" turned out to be 2012's first blockbuster and managed to mint around 120 crore.

"Housefull 2": One would hardly think of enjoying a movie with 12 known actors playing key roles. But this one managed to entertain viewers. A sequel to hit 2010 movie "Housefull", this Sajid Khan film, with its classic comic sequences, but slightly crowded cast, made over 110 crore at the box office.

"Barfi!": The simple story line, sensitive treatment and excellent performances helped Anurag Basu's "Barfi!" establish an emotional connect with the audience. The love story of a deaf and mute boy, played deftly by Ranbir Kapoor, with an autistic girl, essayed by National award-winning actress Priyanka Chopra, left many teary eyed. India's official entry for the foreign film category Oscar this year, the movie, which is now out of the Oscar race, made collections of 110 crore.

"Jab Tak Hai Jaan": Love was redefined in typical Yash Chopra way with "Jab Tak Hai Jaan". The late filmmaker, who bid adieu to the world just a few days before the movie's release, gave his final work with the king of romance Shah Rukh Khan in the lead. The movie, also featuring Katrina Kaif and Anushka Sharma, captured the scenic beauty of London and Kashmir very well - garnering collections of over 120 crore.

"Bol Bachchan": It was hard to think of a modern day version of the 1979 comedy "Gol Maal". But Rohit Shetty made it happen - and how! This Abhishek Bachchan and Ajay Devgn-starrer turned out to be truly 'paisa vasool'. Ajay's one-liner English dialogues and Abhishek's double dhamaal paved the way for crossing the 100-crore mark for this film.

"Son Of Sardaar": Remember Ajay Devgn and his "Phool Aur Kaante" stunt on two bikes? He took it to the next level by riding together on two horses in "Son of Sardaar". A turban-clad Ajay managed to tickle the viewers' funny bone, along with Sanjay Dutt and Sonakshi Sinha, and helped this movie make around 105 crore.

"Talaash": Aamir Khan's Midas touch rarely fails. "Talaash" was just another case in point. This suspense thriller by Reema Kagti narrated the story of a Mumbai cop trying to put a puzzle in place and it kept the audience on the edges of their seats. The film, also starring Kareena Kapoor and Rani Mukerji, made around 90 crore at the Indian box office.

"OMG: Oh My God!": Comedy, sadness, anger and greed. Paresh Rawal carried out all emotions in one character flawlessly. Akshay Kumar played god in the Umesh Shukla-directorial, which questioned the existence of god. Complete with humour and a message, the movie minted over 70 crore at the box office.

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Biggest Business battles of 2012

The 2012 has been action-packed in the world of business and finance which had all the elements of what it takes to make a blockbuster. The main characters involved all - the government, people and even the “aam janata”. Here are few business scams and battles that India has witnessed this year.

1. Is Infosys losing its charm?

It seem to be a loosing battle for software giant Infosys. Lately Infosys has been lacking behind to achieve the target results. Again for the second time Cognizant Technology Solutions has claimed higher revenue than Infosys. On one hand while Cognizant look forward to have $7.34 billion revenue, on the other hand Infosys is likely to wind up with $7.18 billion revenue this year.

While everyone is looking out for a reason behind the low results, some say it is due to lack of few senior officials over the years. Infosys has also been left back by its competitors TCS and HCL Technologies along with Cognizant.

2. SEBI Vs Sahara

Severe jolt to Sahara Group, strict scrutiny of mining activities and scrapping of licenses for 2G spectrum dominated the corporate legal battle in 2012 in the Supreme Court which gave a decisive victory to telecom major Vodafone in an 11,000 crore tax case.

Supreme Court stated the transaction between Vodafone and Hong Kong based Hutchison Group falls out of the tax jurisdiction of the Indian tax authorities.

On other front, it was a lost battle for Sahara Group which on August 31 was directed to refund around 24, 000 crore to their investors within three months with 15 per cent interest per annum.

The apex court said that if the companies Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

As per an earlier Supreme Court order dated August 31, the two companies were asked to submit the investor documents by November 10, while the money was to be refunded to the investors within three months.

3. Service Tax and Central Excise Duty

Comptroller and Auditor General of India (CAG) said that there over 10,300 cases of fraud involving over 19, 159 crore in service tax and central excise duty during 2008-11.

The audit scrutiny revealed that Department of Revenue raised a demand of 7, 654.23 crore in central excise and only recovered 328.67 crore (4.29 per cent) out of it. "Similarly, out of a penalty of 320.85 crore (in central excise) that was imposed, the department could recover only 0.94 crore (0.29 per cent)," it said. In service tax also, the CAG observed the department raised a demand of 9, 905.84 crore and recovered only 2, 706 crore (27.32 per cent).

In the audit report of central excise CAG mentioned 17 cases involving uneven advantage and consumption of cenvat credit revenue worth 25.36 crore.

4. Ministry of External Affairs gift scandal

The protocol division was asked for a Central Bureau of Investigation (CBI) check out by Ministry of external affairs after suspected irregularity in the attainment of gifts. MEA charged the protocol department of buying sub standard gifts at low costs which are to be presented to higher officials, prime ministers and presidents of other countries.

The Right to Information Act (RTI) unfolded that MEA wanted CBI to a detailed investigation. However, MEA did not disclose all the documents stating that it might effect the investigation. The investigation took many high officials in the protocol division of the MEA into suspicion.

5. Apple Vs Samsung

If you often get into an argument comparing which one is batter, apple i phone or the Samsung Galaxy Smartphone, ask the phone companies it self. It started from a 2011 meeting where Apple founder Steve Jobs accused Samsung executives for copying few apple i phone features. Apple also took legal action against Samsung involving patent encroachment.

The U.S. jury verdict in 2012 favored Apple and ordered Samsung to pay $1.05 billion to Apple as damages. And the battle doesn’t seem to wind up. To an existing lawsuit against Samsung Apple added the Android 4.1 Jelly Bean operating system to the list.

6. No “likes” for Facebook

The decision of avoiding trading hordes for long has turned out to be a big mistake for Mark leaving him with no option but to take Facebook public. The year 2012 doesn’t seem to be acclamatory for Facebook founder Mark Zuckerberg. 

The long awaited public offering was bumped up by problems as Nasdaq had system malfunctioning in the very first hour. The sale of the Facebook shares were delayed by around thirty minutes leaving the shareholders completely with no idea of how many shares overall were being apprehended, what prices had been attained.

Though Facebook achieved $16 billion of new cash but unfortunately it couldn’t fetch too many “shares” as it was expected.  Also, the price offered was 11 percent higher than the initial offering and raised the price by $45.

A bunch of the company shareholders also filed a lawsuit against Facebook complaining that many of the secret information were leaked to big banks prior to the IPO.

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