Exchange Rate Policy

Hi Everybody ,,,can anyone help me wid my project of 1oo marks.......Related to Foreign Exchange and Indian IT industry performance????i am sending my "SYNOPSIS" of d project along............it's urgent ..................

Synopsis


Name of the topic :-

IMPACT OF EXCHANGE RATE VARIATION ON PERFORMANCE OF
INDIAN INFORMATION TECHNOLOGY INDUSTRY

Introduction & back ground:-
Like all other trading markets of the capital world the forex rates are also subjected to volatility on account of various parameters like demand & supply, investment flow etc.Due to such volatility the cost & revenue budgeting of the importers and exporters of various goods and services get affected.The affect is due to the change is exchange rate.
For example a person Mr. A in US has exported fruits to country Mr. B in Japan.Currency for US: USDCurrency for Japan: Yen
Hence Mr. B would be making payments to Mr. A on a specific date for a specific amount of USD.Current exchange rates for Yen/USD is 115.
Now, if the exchange rate holds stable on the date of payment its fine for both the stakeholders.However an increase in the forex rate to 118 would mean that the costing for Mr. B in Japan has increased by around 2.50% whereas a decrease would mean that his costing has proportionately gone down.
On the other hand if the payment is to be done in Yen then an increase of forex rate of Yen/USD to 118 would result in lower revenues for Mr. A in US because the purchasing power of USD has gone up. Effectively Mr. B will get only 1 USD for 118 Yen against the earlier rates ( 115 Yen = 1 USD) where he would have secured 1.02 USD for 118 Yen (118/115).In order to mitigate the risk of volatility in exchange rates, the risk managers indulge in forward forex bookings.

A change in exchange rates might affect a business in the following ways:
 Exchange rates changes can increase or lower the price of a product sold abroad
 The price of imported raw materials may change
 The price of competitors’ products may change in the home market
For example an increase in the exchange rate will mean that price abroad goes up, lowering sales; price of imported raw materials falls, either leading to a fall in price and more sales, or an increase in profits; competitors’ prices fall, meaning lower sales.

Objective:-

 To study the impact of exchange rate variation (of US $ and Rs) on IT business in India.
 Analysis of impact of exchange rate variation on performance of top 4 IT companies’ in India.
Research Methodology:-
The Research Methodology adopted will be Descriptive.

Sample Framework:-

Companies selected for study:-
1.Infosys
2.TCS
3.Satyam and
4.Wipro

Sources of data:-
Data collected for the project study will be secondary data.
- BSE IT Index
- Stock Prices from Sensex
- NASSCOM official website.
Research Analysis Tool:-
The research analysis tool adopted for this study will be Regression Analysis.
Period of Study:- 5 years [July 2003-June2008]
 
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need such effort.................................................................................................................
 
.....good work dude.......if u upload some other topics it will help ........................................................................................................................................
 
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