HAPPY NEW YEAR

WOMEN RESERVATION BILL: TIME IS RIPE

H D Deve Gowda-led United Front government, in1996, first introduced the legislation to reserve 33.3 percent seats in Parliament and state legislatures for women. Though it has been introduced in Parliament several times since then, the Bill could not be passed because of lack of political consensus. The idea of making a legal provision for reserving seats for women in Parliament and the State Assemblies first came up during Rajiv Gandhi's tenure as Prime Minister.

The time is now very ripe to get it passed in both the houses. One could not have asked for a better time. The president of the largest democracy in the world is a woman. The president of the national political party with a history of 125 plus years and which is the major ruling partner of UPA -2 is a woman. The leader of opposition in the LS and the speaker of LS are women. The chief minister of the most populous state is a woman. Woman heads the Trinamool Congress, major partner of UPA 2. The all-powerful general secretary who is in charge in AIDMK is a woman. There is woman Politburo member of CPM, who is also a member of Rajya Sabha. We have a woman chief minister in New Delhi. The opposition to the bill came from Yadav trio and Paswan. The strength and bargaining power of this group has come down substantially after the 2009 LS election. There is no threat to UPA government from this group. The UPA -2 should get the bill passed immediately in both the houses and send it the president for doing the needful.

POLITICS OF PERSONAL AGENDA

ACT-I. Lead players – Reddy brothers.

The powerful Reddy brothers hijacked 40 odd MLAs and kept them in resorts in Hyderabad, Goa and other places. They threatened to pull down the only BJP government in the South, if their demands are not met. Among others, they insisted that in the larger interest of the state, BSY should step down. This was during the period, when the parts of north Karnataka was facing severe humanity problems caused by unprecedented floods. The elected representatives instead of overseeing the relief work were enjoying their paid holidays in resorts. Sensing the seriousness of the problem the party high command deputed Arun Jaitely to bengaluru to work out a peace deal. Jaitely held series of discussion with top rung leaders and as well as with other office bearers. Discussions continued for three days. The Reddy brothers did not budge. Jaitely returned to Delhi empty handed. Some BJP leaders also held meeting with RSS functionaries in the city. In the meanwhile, the warring Reddy brothers intensified their stand. They were even not ready to meet BSY for any discussions. The drama shifted to Delhi. Janardhan Reddy who was camping in Delhi, met the then party president Rajnath Singh, their god mother Sushma Swaraj and others. The leaders in turn interacted with Advani. The meeting and interaction went on for three days. BSY was summoned to Delhi. Some understanding was reached with Reddy brothers except the removal of BSY. The high command warned the Reddy brothers to toe in line or face the consequences. Reluctant Reddy brothers accepted the truce. Most of their demands (personal agenda) have been met. The first casualty of this truce was removal of the most efficient and only woman minister from the ministry. The other demands considered with the public knowledge are shifting of efficient, honest and straightforward senior beurocraft. The CM also reversed his own orders of transferring various officials in the Bellary district. The coordinating committee was expanded to include more members from the Reddy group. In the meanwhile, the temperature was cooled down in bengaluru with the on set of winter.

ACT-II. Lead players - Renuka Charya and Bellubbi

BSY, managed to save his chair and confessed that in the dirty game of power politics, the values and principles have been thrown to the wind. He also admitted that God also would not forgive him for his selfish acts. In politics chair is more important than any thing. The group of MLAs who supported Reddy brothers were hoping that some of them would made ministers. BSY categorically stated there would not be any expansion until the budget. The dissidents in the meanwhile started visiting various Mutts to put pressure on the CM. The dissidents re enacted the resort politics. The hapless CM relented to the pressure tactics. After having discussions with his senior colleagues, the CM announced that Renuka Charya would inducted to the ministry on 24-12-09 and one more MLA, probably Bellubbi will be accommodated in the ministry in Jan2010. Personal agendas are achieved. The life, for people of flood affected areas in north Karnataka have not changed for better. Long live our politicians. Long live our democracy.

NON PARTICIPANT WINS THE RACE

Nitin Gadkari did not participate in the race. However, the umpire using his discretion declared Gadkari as the winner,much to the dissatisfaction of the participents. The RSS finally got its man as the president of the saffron party. Gadkari is new to national politics. He has not won a direct election. He is not a member of either Loksabha or Rajya Saba. This makes his task difficult.He has a very challenging task in rebuilding the party from the grass root level. This depends on the cooperation he gets from various factions within the party. The once disciplined party, is now has enough indisciplined and dissident MLAs and MPs and office bearers, in various states, Rajasthan and Karnataka being in the prominet ones. The success of his tenure as president will heavily depends on the cooperation being extended by senior leaders like Arun Jatley, Sushma Swaraj, Ananth Kumar, Venkaiah Naidu, Rajnath Singh, Narendra Modi and others, including leaders from his own home state. Gadkari is known for his straightforward attitude. However, his recent assertion that RSS had no role in his elevation to the top post is far from the truth. The whole world knows what went on behind the scene. Best wishes to him.

BANK MERGERS: EMPLOYEES SHOULD SEE REASON: SIZE MATTERS

The strike by employees of state owned banks against mergers is unwarranted and uncalled for. Mergers actually results in overall benefits to all stakeholders when the consolidated post-merger entity is more valuable than the simple sum of the two separate pre-merger units. The primary cause of this gain in value is in the performance improvement following the merger. The post-merger focuses on improvements in all types of efficiency, led by the increased cost efficiency. The mergers have been motivated by a belief that a significant quantity of redundant operating costs could be eliminated through the consolidation of activities. Substantial geographic overlap reduces the number of branches in markets. A related effect of mergers is increase in market share in the very very competitive market. More over public sector banks are not being merged with private sector banks. The government has assured to the employees that there will be no change in the service conditions, emoluments, terminal benefits etc. The ownership still remains with the government. The move is to create banks of international size, to play a significant role in the world economy in the changed economic scenario.

BJP’S WRONG PRIORITIES

The assertion of Sushma Swaraj, senior BJP leader in the LS that if their party forms a government at the Center next time, Ram temple will be on top of the priority list, indicates that the BJP has not learnt any lessons from its past mistake. It is again trying to play the religion ‘card’ to come to power at the Center. It has no other issues to fight. BJP has no programme and policies for the country’s burning problems. There is poverty, hunger, unemployment, power shortage and lack of infrastructure both in urban and rural region. The country needs major reforms in education, health and housing sectors to enable the poorest of the poor, the underprivileged and the deprived sections of the society to avail the benefits from such reforms and improve their standard of livings. Instead of debating on such issues, the party is trying to disturb the secular fabric of the country again. If building temple is going to be the main poll agenda of the BJP, the chances of BJP forming government at the Center are very very bleak.

SUFFICIENTLY INTELLIGENT AND COMPETENT

Anil Dharker views that our intelligence agencies are inefficient and unprofessional and comparing them to the agencies in UK and US is unfair. (DNA 23-11-09 - How intelligent our sleuths are) They must be having sufficient information about Vilas Pandurang Warak and Rahul Mahesh Bhatt. That need not be made public, since investigation is still in progress. The law is same for every one and the National Investing Agency (NIA) is following the established procedure in questioning them. Just because they are from film land, rules need not be deviated. It is the media that is harassing them with un wanted publicity. The investigating agencies are just doing their job. We all know how FBI officials treated our Sharukh Khan in August this year, at New York airport. If the US intelligent agencies are so efficient why they had know clue about the 9/11 attack, which killed thousands of people. Why they are not able to catch the most dreaded terrorist Osama Bin Laden, in spite of Pakistan government giving them free hand to use their territory for that purpose? By appearance most Indians, Bangladeshis and Pakistanis (the epicenter of international terrorism) look alike which is a major hindrance in surveillance and information gathering, unlike in the West, where they can easily identify an Asian by look. This is the advantage the Western intelligent agencies have over our agencies. Otherwise, our intelligent agencies are also sufficiently intelligent and competent.

BURY THE REPORT, BUILD PLACE OF WORSHIP FOR ALL RELIGION

A lot of debate, discussions, views and counter views have been on the air since the Liberhan report was leaked/placed in Lok Sabha. Justice Liberhan has taken seventeen years to tell what the country already knew. The delay is an indication of how successive governments at the Center were serious about the reports, its findings and taking action against the culprits. The report is a stillborn child, which will be quietly buried. The present government at the center has neither the numbers nor political will to take strong action against those who were responsible for the demolition. The political parties are in no mood to find a lasting, permanent solution to the problem. The debate, discussions should focus on this, instead of looking into the omissions and drawbacks of the commission. The purpose of all religion is to know and love God and to show ethical and proper directions to life and living. The preaching in all religion does not differ in any way and all teach love as against hatredness. India being a country, which harbors a multitude of religious belief, the feeling of solidarity in diversity can be best showcased by building a centre of worship for all religions.This would no doubt become a memorable monument for the whole world to appreciate and emulate. Its time the political differences are buried and India demonstrates to the world that we are a truly a secular nation in letter and spirit. The government should initiate talks in this regard involving all political parties.

ANDHRA SPLIT: HIDDEN AGENDA

PUBLISHED IN HT ON 15-12-09 UNDER THE CAPTION - TELANGANA DECISION HASTY.


The haste decision of UPA -2 government to initiate the process of splitting the Andhra, has put the otherwise strong Congress government in the state in a spot. The Telangana movement is not an overnight creation. The demand was there for the past forty years. KCR who was part of NDA government in 1999 did nothing for creation of separate state. TDP(KCR was in TDP at that time) had more numbers in LS at that time and Chandra babu Naidu was the chief minister of Andhra. He could have got the Telangana state without any problems, normally associated when smaller states are carved out of bigger state. In 2009 assembly as well as in the LS election TRS lost very badly. Under YSR, Congress rode back to power. There was no agitation when YSR was at the helm of affairs. The bickering and weak leadership in state Congress gave him the much needed plat form to re-launch his sagging political career. It is a myth that the smaller the state, the better the administration and the development. It is not about the size or numbers when it comes better governance and performance. The quality of political leadership, commitment, political will and genuine concern for the development of the state and welfare of the people that matters. Does KCR have the magic wand to solve all the problems faced by the Telangana region? Why he did not go on fast unto death, for the same cause, when he was part of NDA?

The majority of MLAs and MPs of Congress, TDP and Praja rajyam parties are against the split. Unless a favorable resolution is passed in assembly, the Center will not be able to proceed further. And we will be back to square one.

VIR SANGHVI IS RIGHT – PAK IS CUNNING

Thought provoking and excellent article by Vir Sanghvi – There is a method to their madness (Reflections HT- 13-12-09). For the reasons best known to their leaders (MAD), the PAK neither is interested in having peaceful relationship with India nor is their successive leaders are making any sincerer efforts in finding a lasting solution to the vexed problems. The government of India had provided more than required proof against the perpetrators of Mumbai attack. Shah Mehmood Quershi, PAK external affairs minister had the audacity to say that the proof provided is half- baked, recently in New York. PAK is simply not interested in taking action against the offenders. On one pretext or the other, the PAK is delaying taking actions on the terrorists who attacked Mumbai.

Any right thinking and responsive government would have taken action barely on the request made without going into the details of so-called proof. However, our good neighbor does not do that. This gives reasons suspect whether such heinous acts were carried out with the tacit understanding and the support of the establishment there. Only time will reveal the ‘true’ intentions of PAK in its role in curbing the terrorists activities on its soil or otherwise.

Earlier, the former Pakistan president Pervez Mushraff has admitted that the aids provided by the United States to Pakistan for the fight against terrorism during his tenure was misused to strengthen the defenses against India. Mr.Zardari, the present PM, has accepted the fact that the terrorists in their land are created, nurtured and supported by the Establishment. Terrorists, by tacit understanding and the support of PAK military and ISI carried out the 26/11 attack on Mumbai. The government of India has provided enough proof, that the attack was carried out by out-fits, that are sheltered and protected by the Government of PAK. The PAK government is not serious in this matter. The dreaded international gangsters, drug peddlers and terrorists are living like Moghul emperors of yester years with active support of the government. India has given a list of most wanted international criminals who are sheltered in PAK. However, no response from them. What kind of a peace deal, one can have, with leaders of that kind of mindset. It is high time that we stop acting like statesmen, show our strength, and put the peace talk in the back burner.

For IPO analysis from the same blogger log on to firstchoiceipoanalysis.blogspot.com

IPO ANALYSIS – DB CORP LIMITED - SKIP, JUMP AND PASS OVER

D B Corp, one of the leading print media house in the country, publishing 48 newspaper editions, in three languages, in eleven states and which also operates 17 FM radio stations, is entering the capital markets. The public issue consist of 1, 81, 75,000 shares of Rs 10/ each, including the offer for sale of 1, 27, 25000 shares in the price band of Rs 185 -212.
The issue will open on 11-12-09 and closes on 15-12-09. Enam Securities private limited, Citi Corp Markets India private limited and Kotak Mahindra Capital Company limited are the Book Running Lead Managers.

The flagship newspapers of DB Corp are, Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar, have a combined average daily readership of 15.5 million readers, making them one of the most widely read newspaper groups in the country. The other newspapers are Business Bhaskar, DB Gold and DB Star and, on a franchisee basis, DNA (in Gujarat and Rajasthan). In addition to newspapers, they also publish 5 periodicals, namely, Aha Zindagi, a monthly magazine published in Hindi and Gujarati, Bal Bhaskar, a Hindi magazine for children, Young Bhaskar, a children’s magazine in English and Lakshya, a career magazine in Hindi.

OBJECTS OF THE ISSUE

The objects of this Issue are to raise funds for - setting up new publishing units, upgrading existing plant and machinery, enhancing brand image through sales and marketing, reducing existing working capital loans and for prepaying existing term loans.

However, the projects for which the Net Proceeds are intended to be utilized have not been appraised by any bank or financial institution and the costs of the projects are based on the internal estimates of the Company.

FINANCIALS
07 08 09 (Rs in crores)


Total Income 674.37 862.69 960.98

Net Profit 35.90 69.77 54.81

EPS (In rupees) 3.06 6.01 4.06

The weighted average RoNW was in excess of 30% for the last three years.


VALUATION AND MATTERS OF CONCERN

Established brands in Indian print media with wide geographical reach. Average fundamentals. Based on FY 2009 EPS, in the price band of Rs 185 -212 the stock is valued around 50 times its earnings, as against the industry average of 28 times. The valuation is very much stretched. The company has no definitive business plans. The promoter group companies have history of de-listing from the Stock Exchanges. Some of the trademarks, logos and copyrights are not registered. The company is unable to disclose information in relation to certain promoter group companies. Promoters and promoter group have equity interests or investments in other entities that offer services that are related to the business of DB Corp.

BUSINESS CHALLENGES

D B Corp business is dependent on advertising revenue and a reduction in advertising expenditure,loss of advertising customers or inability to attract new customers could have a material adverse affect on the business. The company relies substantially on advertisements revenue. During the financial year ended March 31, 2009, the company derived 75.50% of consolidated income from advertisement income.

According to PWC report, the media growth rate to increase in 2010 to 10.4%, from of about 9% now, as economic conditions are expected to gradually improve. The industry will continue to grow at increasing rate and there will be an overall compounded annual growth rate for the period 2009-13 of 10.5 percent. The report also predicts a healthy growth in all eight segments of entertainment and media industry in next four years (2010 to 2013). These are television, filmed entertainment, print media comprising newspaper and magazine publishing, radio, emerging segments like music, animation, gaming, internet advertising.

The Indian newspaper industry is intensely competitive. In each of the markets, DB Corp faces competition from other newspapers for circulation, readership and advertising. In addition, they may face competition from other forms of media including, television broadcasters, magazines, radio broadcasters and websites. These other forms of media compete with newspapers for advertisement and for the time and attention of readers. The group may also face competition from international media companies as the Government of India has recently liberalized its foreign investment regulations and restrictions applicable to the media sector. Competition for circulation and readership has often resulted in competitors reducing the cover-prices of their newspapers. Furthermore, competition for advertising from newspapers has often resulted in competitors reducing advertising rates or offering price incentives to advertising customers. Such reduction in prices or rates or the introduction of new price incentives could have a material adverse effect on financials.

Circulation and readership of newspapers among readers is an important source of revenue as they significantly influence ad-spend by advertisers and advertising rates. Circulation and readership are dependent on, among other factors, the quality of editorial content and the preferences of readers, the reach of newspapers, and the loyalty of readers to newspapers and ability to successfully establish new locally focused newspapers in new regions. Any failure to meet readers’ preferences, quality content may affect circulation and in turn revenues.
The issue is very unattractively priced. There is nothing left for investors. AVOID SUBSCRIPTION.

ANALYSIS OF FORTH COMING IPOS

Await for analysis of ;
a. DB corp
b. Vasocn engg
c. Hathway cables
d. Kumar urban developers
e. Nitesh estates
f. Lodha developers

IPO ANALYSIS: GODREJ PROPERTIES LIMITED – SURE WINNER - APPLY

Mumbai based, leading real estate development company, who are one of the top ten builders in the country, is entering the capital markets, to raise around Rs 500 crore, with public issue of 94,29,750 equity shares of Rs 10/- each in the price band of Rs 490 -530. The issue will open on 09-12-09 and close on 12-12-09. ICICI Securities limited, Kotak Mahindra Capital Company. IDFC- SSKI LIMITED and Nomura Financial Advisory Securities Pvt limited are the Book Running Lead Managers to the issue.

The company is promoted by Godrej Industries Limited, which holds around 80% of equity share capital. Godrej Industries Limited is the listed flagship company of the Godrej group of companies, which is one of the leading business conglomerates in the country.

Godrej Group is engaged in diverse business segments, spanning Home appliances, FMCG, Consumer products, Industrial products , Oleo chemicals, Animal feed, Real estate development and Oil palm plantations.

Godrej properties limited (GPL) has real estate development projects in 10 cities in India, which are at various stages of development. Currently, the business focus is on residential, commercial and township developments. GPL is a fully integrated real estate development company involved in all activities associated with the development of residential and commercial real estate.

GPL, as of October 15, 2009, has Land Reserves of 391.04 acres aggregating approximately 82.74 million sq. ft. of Developable Area and 50.21 million sq. ft. of Saleable Area, located in or around prominent and growing cities across India, such as Mumbai, Pune, Bengaluru and Ahmedabad. As on the same date the company has completed a total of 23 projects comprising 16 residential and 7 commercial projects, aggregating approximately 5.13 million sq. ft. of area for development.

OBJECT OF THE ISSUE

The company plans to raise around Rs 500 cr, intends to use Rs 203 cr for acquisition of land development rights for forthcoming projects, Rs 75 cr for construction purposes, Rs 172 cr repayment of loans and the rest for general corporate purposes.


FINANCIALS
(Rs in crores)
09 08 07
Operating income 247.38 227.50 137.26
Profit after tax 76.62 74.85 28.72
RoNW 25% 41% 48%
EPS (In rupees) 12.53 12.78 4.97







VALUATION

GPL is promoted by reputed Godrej group, which has very strong brand equity. Excellent financial track record. Leaders in corporate governance. In the price band of Rs 490-530 the stock is valued at about 40 times of its earning for FY-09. ICRA has awarded grade 4 for the IPO indicating above average fundamentals. The high valuation is justified considering the strong financials, brand equity and future business prospects.


CHALLENGES AND STRATEGIES

The company’s ability to successfully compete in new segments across different geographies is yet to be demonstrated. Due to general recession, proportion of un-booked space in the on-going commercial projects exposes it to market risks. Further slowdown in real estate segment may affect the demand and resultant decline in property prices. This coupled with oversupply situation in many pockets can affect the prices further, which will have cascading impact on financials.

As per CRISIL estimate, the annual additions in units are expected to grow from 70 million units in 2008 to reach 81 million units in 2014. Estimated annual additions in units in rural areas are to grow from 174 million units in 2008 from 198 million units in 2014. GPL with selective acquisition of land parcels in strategic locations, also enter into development agreements with land owners to acquire development rights to their land in exchange for a pre-determined portion of revenues, profits or developable area generated from the projects. The Godrej brand name and the reputation associated with it contribute in attracting potential joint development partners . This business model enables undertaking more projects without having to invest large amounts of money towards purchasing land. Hence, GPL is able to limit risk through project diversification while maintaining significant management control over our projects. A SURE WINNER FROM THE GODREJ STABLE. APPLY.

IPO ANALYSIS: JSW ENERGY LIMITED – POWER PACKED - APPLY

Jindal group needs no introduction in capital markets. The group has business interest in the steel, power, cement, aluminum, software, power trading and infrastructure sectors.

The power company from the JSW group is planning to raise Rs 2700 cr through IPO,in the price band of Rs100-115 per share, having face value of Rs.10 per share. The issue will open on 07-12-09 and closes on 09-12-09.

JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital Ltd., ICICI Securities Ltd., IDFC-SSKI Ltd., JP Morgan India Ltd., SBI Capital Markets Ltd., Morgan Stanley India Ltd. and IDBI Capital market Services ltd are the book running lead managers to the issue.

JSW Energy limited, is a part of the JSW Group, headed by Mr. Sajjan Jindal.The company currently owns and operates thermal power plants in Karnataka with an aggregate capacity of 995 MW. It also provides operation & maintenance services for power plants of group companies and project management services for the power plants being set up by the group. JSWEL is currently in the process of enhancing its power generation capacity by 2,790 MW. It is also setting up a transmission line network and developing lignite mines through joint ventures.

OBJECTS OF THE ISSUE

The funds raised are intended to be used for setting up power plants. Repayment of high cost corporate debts and for general corporate purposes.

The cost of the projects is estimated at Rs.14,048 crore and is being funded in a debt to equity ratio of 2.45:1 i.e. long-term debt of Rs.9,979.50 crore and equity of Rs.4,068.50 crore. The company has already tied up the total debt component while, funds aggregating Rs.5, 982 crore were deployed in the various projects as on June 30, 2009. State Bank of India and ICICI Banks have appraised and funded the projects.

VALUATION

The company had a CAGR in excess of 30%, in revenue generation, in the last three years. Consistently profit making company. Professional and experienced management. Known for good corporate governance. Strong financials. Power plant are located at diverge geographical locations. The issue has been graded by rating agency CARE as Grade 4, indicating above-average fundamentals. The company’s RoNW is at 18% as on 31-03-09. At Rs 100 -115, the issue is very attractively priced considering its pedigree. Retail investors are offered a discount of Rs 5/- per share.

OPPORTUNITIES

On the successful commissioning of the projects, JSWEL would have benefit of the prevailing high merchant tariff for short term. Given the significant power supply deficit in the country and government recognizing the power sector as a key infrastructure sector to be developed to sustain Indian economic growth, prospects for
growth is favorable for companies in the power sector.

One of the established energy company. One of the early entrants in the power trading business. Currently most of the revenue is derived from power generation. The company has the potential to become an integrated power company in the Indian power sector with presence across the value chain.

The low per capita consumption of electric power in India compared to the world average presents a significant potential for sustainable growth in the demand for electric power in India. There is a very big gap between demand and supply, demand being higher. The company is in the right business at the right time. Investors are advised to apply for the issue for both short term and long term appreciation.

ATTRACTIVELY PRICED. APPLY.

IPO ANALYSIS: MBL INFRASTRUCTURE LIMITED – BETTER AVOID

The Kolkatta based infrastructure development company is planning to raise around Rs 100 cr through IPO, which is slated to open on 27-11-09 and closes on 01-12-09. The company proposes to issue 57, 00,000 of equity shares of Rs 10/each in the price band of Rs 165-180. Motilal Oswal Investment advisors are the Book Running Lead Manager.

The company is promoted by R G Maheshwari and associates, was originally incorporated as Maheshwari Brothers Limited and subsequently its name.

The company is engaged in the construction and maintenance of roads and highways, industrial infrastructure projects, other civil engineering projects for various government bodies and other clients.

The company has a pan India presence and has executed or in the process of execution a number of projects in states of West Bengal, Madhya Pradesh, Maharashtra, Rajasthan, Assam, Uttar Pradesh, Bihar, Delhi Andhra Pradesh, Haryana and Karnataka.

The company has also interest in steel trading and waste management and ready mix concrete business.


OBJECTS OF THE ISSUE

The funds are intended to be used for procurement of capital equipments, investments in joint ventures, for BOT projects, for working capital requirements and for meeting general corporate purposes. However, the project has not been appraised by any Bank or Financial Institution.


VALUATION

The company has recorded robust revenue and profitability in the last three years and has track record of dividend payment. At Rs 165 (lower end), the price earning ratio of 17 is very much on the higher side, compared to the peers of the sector which are available around 12/13 P/E. Certain criminal cases are pending against the company/ its subsidiaries/group companies and income tax (disappropriate income) appeal. Company is heavily dependent on government/government funded projects. The rating agency ICRA has awarded grade 2 indicating below average fundamentals. The premium sought is very much is on the high side, considering the above factors.



CHALLENGES AND RISKS

Demand for our infrastructure services depends mainly on general developmental activities in the country and expenditure levels in the building and infrastructure sectors. The infrastructure services are principally dependent on sustained economic development in the regions in which the company operates. In addition, demand for infrastructure services is largely dependent on government policies relating to infrastructure development and budgetary allocations made by governments for such development, as well as funding provided by international and multilateral development financial institutions for infrastructure projects. Investment by the private sector in infrastructure projects is dependent on the potential returns from such projects, is therefore linked to government policies relating to private sector participation and the sharing of risks, and returns from such projects. A reduction of capital investment in the building or infrastructure sectors for any reason could have a material adverse effect on business, results of operations and financial condition. Instability of economic policies and the political situation in India could adversely affect the fortunes of the Industry. Investors are advised to stay away from the issue.

IPO ANALYSIS : COX & KINGS: ATTRACTIVELY PRICED – APPLY ...

One of the leading and oldest recognised service provider in the travel and tourism industry with pan India and global presence in 18 countries is planning to raise around Rs 600 crore through IPO. The company proposes to issue 1,84, 96,640-equity shares of Rs 10/ each, including offer for sale of 30, 46,640 shares in the price band of Rs 316 -330/ share. The issue is slated to open on 18-11-09 and closes on 20-11-09. India Info line limited are the Book Running Lead Manager.

The company caters to the overall travel needs of an Indian and International traveller and it is one of the India ’s largest tour and travel operator, which serve as a ‘One Stop Shop’ for all travel and travel related products.

Cox & Kings business are broadly categorised as Leisure Travel, Corporate Travel, Forex and Visa Processing. They also design travel packages for both individuals and groups for their domestic and international leisure travel, as travel arrangements for corporate clients to cater to their business meetings, conferences and events. They also provide end-to-end travel solutions including land, air and cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, visa, passport and medical insurance assistance. The company continuously innovates product offerings with the flexibility to meet the changing needs of the customers and to address their needs better.

OBJECTS OF THE ISSUE

The proceeds of the IPO are intended to be deployed for acquisitions, investments in overseas subsidiaries, repayment of loans and for general corporate purposes.

THE PRICING

Taking into consideration the company’s strong brand equity, efficient management, wide range of products, geographical reach, investment in technology and financial performances, the issue can be considered very attractively priced. The rating agency CARE has assigned Grade 4, indicating above average fundamentals. At Rs 316-330, the price-to-earning ratio is around 16 multiple based on the average weighted EPS of Rs 22.00 for the last three years, as against the average industry PE multiple of 36. There is enough scope for further appreciation.

CHALLENGES

The company operates in a highly competitive market and hence faces stiff competition from other players operating in this sector as also from the un-organized sectors. Many Indian and foreign players have entered the market both in the online and offline space. Pricing is one of the key factors that play an important role in customers’ selection of products. There are several strategies adopted by competitors to increase their market share through advertising, pricing, service, new product innovations and distribution reach amongst others. This increased competition by both traditional and new players is likely to affect margins. However, this could stand mitigated by the the brand equity and the trust it has earned over the years. The company appears well poised to face the challenges and emerge a winner. This is one of the public issues that the investors can apply and look for positive returns.

EDUCATION AS BUSINESS VENTURES, NOT GOOD

The story of Kota –education is an industry, was interesting. (Entrepreneur Nov 2009 issue). However, as revealed in the article, Bansal and his clan are more interested is amassing wealth in the name of education. These coaching classes are exploiting the situation. It is the greed to make more money rather than love of profession being the reason for mushrooming of so many coaching classes. Earlier, the HRD ministry had proposed to raise the eligibility bar for the Joint Entrance Examination, to curb this coaching class culture. The students with only aim of securing a better rank in the entrance examinations are neglecting the regular studies and concentrating more on coaching classes. Through this mad coaching class culture students are more interested in JEE ranking than acquiring knowledge in the chosen subjects, since the syllabus of the coaching classes are designed in that manner. More over, only the students from affluent families are benefited from this culture, because of their ability to pay, to the disadvantage of the students from poor/middle class background. The HRD ministry proposal to some extent put an end to that disparity. It is also alleged that some students bunk the classes for the whole year and camp in the so-called Mecca of coaching classes. How ethical to coach, those, only the coaching institutes should explain. The get proxy attendance in connivance with school management. The article should have thrown some light on the other side of the story also.

NO ALTERNATIVE STRATEGY

Australia is without the services of the most dreaded opening pair, Hyden and Gilchrist, the legendary spin bowler Warne, the middle order dynamite Symonds, the nagging speed kings, McGrath and Lee, and the victory they achieved with ease in Gauhathi was amazing. That is the stuff of a champion side. After winning the toss, for the reason best known to him, Dhoni chose to bat, on a pitch, which traditionally assists the swing bowlers in the morning, due to fog factor. The match was over in few overs, when our top batsmen were back in the pavilion with only 20 odd run on the board. Dhoni is aware of the batting strength of Pravin kumar and Harbhajan, as evidenced in the previous matches. When we lost, two wickets in the first over, he should have sent one of these two immediately. They are capable of upsetting any bowling line up. Few couple of good overs for India would have changed the entire direction of the match. Dhoni stick to traditional game plan or strategy, without taking any risks. Pravin kumar has the all the qualities of a good all-rounder. He needs promotion in his batting line-up. He can be used as pinch hitter occasionally, when we lose wickets very early, as we did in Gauhathi.

HARD LESSONS FOR REDDY BROTHERS

Thanks to Sushma Swaraj’s efforts, the crisis in Karnataka BJP has been solved, to the satisfaction of the both the sides. The question is how satisfied are the Reddy brothers, who wanted nothing less than the change in leadership. What made them to accept the compromise formula, only time will reveal. The causality of this compromise formula is the transfer of the most efficient bureaucrat V P Baligar and sacking of Rural development minister Shobha Karandlaje. The powerful Reddy brothers had brought the state administration to stand still in its one of it difficult time, because of the problem faced by the people of north Karnataka due to floods. Their money power, holed-up more than 40 MLAs in resorts, in Goa, Indore and Hyderabad. However, their money power could not succeed in influencing the central leadership for change in the state leadership. They have learnt it hard way, that the money cannot buy everything. The credibility, values, ideology and the experience are too expensive for money to buy. And Reddy brothers are learning it the hard way. Any broken relationship can be soldered, but it will not be strong. One only hopes, this one comes under the exceptional category.

WEAK CENTRAL LEADERSHIP

The dissidence problem in Karnataka is almost two weeks old and the central leadership of BJP has failed to resolve the issues raised by warring Reddy brothers amicably. The party with a difference, the displened, the principled, the cadre based and the value-based party’s central leadership finding it very difficult to deal with all-powerful mining lords. Undoubtedly, Reddy brothers played a pivotal role in BJP coming to power in Karnataka during the elections and after the election, in seducing the independent MLAs to extend support to the party, to have simple majority in the assembly. Now they are trying to extract their pound of flesh. This is bound to happen when values are thrown out for the sake of power. The central leadership should discipline them either by dropping from the ministry or expel them for anti-party activities for some years. Party is more important than individuals are. In the worst scenario, this may cost them the power. It does not matter. Elections come and go, parties come to power and go but the values and ideology in which the party believes should not be allowed to go. It is perplexing why the BJP is hesitating to take action against the dissidents.

INDIRA GANDHI WAS A GREAT LEADER, PAR EXCELLENCE

The views expressed by Parsa Venkateshwar Rao Jr in the article’ Indira Gandhi was merely a politician’(DNA 03-11-09) is not correct. She had all the qualities of a very strong, great leader. Bank nationalization, Pokaran nuclear test, Garibi hatav programme, Right of ownership to the tiller, the win against Pakistan in 1971 war, are some of the feathers in her cap. Mere politicians cap will not have these kinds of feathers. She was the true leader who knew the pulse of the voters. Her strong leadership qualities when in power and out of it was hailed in India as well outside the country. Although there were some drawback in her style of functioning, it is wrong to attribute the same as lack leadership. Politics is a different ball game. One has to deal with the elected representative whether they are educated or not, whether they understands host of the things of efficient administration. Even today, it is difficult attract talented people for various (obvious) reasons for any political party. The assertion that she lacked the ability to build a team of talented people is again not correct. Contrary to the views expressed in the article, undoubtedly Indira Gandhi was one of the greatest leader India has produced and not merely a politician.

TENDULKAR DISMISSAL, TURNING POINT

The not so formidable bowling attack of Australia defended the modest score of 250 runs on a good batting pitch. The all-round display by Shane Watson helped the Aussies to win the Mohali match. India started well, Sewag hitting the ball to all parts of the ground. As it happens most of the time, he did not lost long. Master blaster, Tendulkar, was shaping his innings well. Cricket fans were hoping that he would cross the all-important milestone of scoring 17000 runs in ODI. However, a wrong decision by the umpire (as confirmed by the television reply) adjudging him as out, to a ball which was pitched outside the leg stump, turned out be the turning point of the match. After that, India lost wickets at regular intervals and the run rate started climbing. Harbhajan Singh did his best. That was not good enough for India. He and Praveen Kumar have demonstrated in this series so far, that they have the potential to become genuine all rounders. The team management should take note this and utilize their batting potential to the maximum in the overall interest of the team India.

DESPERATE BASU

The patriarch of CPM, the man who holds the record, for occupying the post chief minister for highest number of years in the history of Indian democracy, is desperate to save his party, in the coming assembly by polls. Basu has sought the support of traditional Congress voters to fight the Trinamool Congress. What an irony. The man, who fought against the party his entire life, is seeking the votes of the supporters of the same party. The reason being that the LEFT gave unconditional support at the center to counter the threat of communalism. The people of the state/country are also aware that the bottleneck they created for various developmental programmes and for reforms, the UPA government wanted to implement sincerely. Moreover, for the same reason that the LEFT were routed out in the previous Lok Sabha election. Since then there is no change its programme, policies and ideology. Hence, on what basis Basu is seeking the support of Congress voters is perplexing. It appears, writing on the wall, for LEFT is very clear. As a seasoned politician, he can read very early and clearly than others can.

CATCH THE OTHER FISHES, TOO

APPEARED IN HINDUSTAN TIMES UNDER THE CAPTION - SUCH A SHAM ON 28-11-09.


First time in the history of Indian democracy, a sitting Loksabha member is to be prosecuted under the Prevention of Money Laundering Act (PMLA). The MP in question is, Madhu Koda, an independent from Jharkand. The I T department conducted nationwide raids on 60 premises belonging to him/his associates for diversion of funds to the extent of Rs800 crore during tenure as chief minister of the state. Whoever is responsible for this initiative/action against a politician should be congratulated. At least a beginning has been made to weed out corruption in politics. Politics as a profession pays you nothing. Then, why are most of our politicians crorepathis. Unless they are corrupt (barring exception) and pursue unethical ways to amass wealth this cannot happen. There are big fishes in other political parties, including the Congress, who have amassed wealth much against their known sources of income, by virtue of being in politics or being close to a leading politician. It is universal truth that most politicians spend 20-25 times more than the limit fixed by Election Commission while fighting an election. There are loopholes in the system and they easily escape being caught. Will the establishment responsible for action against Madhu Koda initiate similar action against other corrupt politicians in the country. Otherwise, one would presume that action against Madhu Koda is a political stunt ahead of assembly election in the state or he is being singled out because he does not belong to any major national/regional political party.

ABSENCE OF BIG HITTERS FELT

Aussies lackluster batting performance in Kotla ground is responsible for their second consecutive defeat against India. Ponting was surely missing the services of Gilchrist, Mathew Hayden and Andrew Symonds, the all time big, awesome, hitters in the game. These players were capable of taking any bowling attack head-on and single handedly win matches for their side. After winning the toss, Ponting elected to bat and opened the innings with Watson. Both struggled to score runs at a brisk rate. Ponting was more cautious, aware the absence of big hitters in the side. The average per over score was around four runs, until the 40th over. One expected the firework in the last ten overs. However, nothing happened. The final score of 220 odd runs was never a tough target for the strong batting line-up of India. Dhoni and Yuvraj played sensibly and India had no difficulty in reaching the target. Its good, India won the match. However, the real action was missing. Long live the phenomenal hitters.

LESSONS FROM SQUABBLINGS IN BJP

The party with a difference, much disciplined, development oriented and cadre based party’s image in Karnataka is in shambles because of indiscipline, infighting and most important lust for power. The state is reeling under un precedented havoc caused by the floods, the elected representatives of BJP for fighting in the streets to fulfill their personal agenda. More intriguing was, while addressing the press conference after his return from ‘Kukke subramaya’ C M Yediyurappa asserted that all his colleagues, MLAs are working overtime to help the people affected in flood affected districts. To the astonishment of viewers, this statement comes when nearly 60 dissident MLAs are locked at Hotels in Andhra Pradesh and Goa, enjoying their free/sponsored holidays. The inorganic growth of BJP in Karnataka is one of the major contributors for party’s indiscipline and dissidence. With the sole intention of winning elections, if people who do not believe in the ideology, policies and programmes are admitted to the party, the current situation is bound to happen. Although the present C M does not have much experience, he has done reasonably well in all fronts. One does not know the real demands of Reddy brothers. The M P from south Bangalore, who was once calling the shots in Karnataka’s BJP affairs is watching the entire ‘drama’ as mute spectator. The central leadership may work-out a compromise formula and solder the relationship between the warring Reddy brothers and the C M, but any such relationship will not be strong.

STRIP ALL TITLES

The startling revelation by the one of the greatest of player of tennis, that he was using recreational drug, crystal methamphetamine, popularly known as ‘speed’ in hey days, has shocked the tennis fans across the world. More startling was, that the governing body of ATP relied on the statement of Agassi overlooking the findings of the doctor in the drug test. The ATP should strip all the titles won by Agassi, ban him for life from associating himself with tennis any capacity. No one is bigger than the game.

CHANGE OF TRACK

The article by R. Jagannathan, Brand Man Mohan rising (DNA 29-10-09) was interesting for the reason that the same author had wrote as early as in April -09 that Dr. Singh is un worthy the title – India’s best known reformer and the Congress deserve to lose in the current (LS) election. The author has also criticized the performance of Dr. Singh during 2004-09 as very poor. Dr. Singh has not made any dramatic changes in the programme and policies since then, the UPA-2 is just perusing and implementing its policies in a systematic manner. Dr. Singh is the most respected politician any where in the world. His brand was never down and will never be down.

UN IMAGINATIVE CAPTAINCY

Ricky Ponting, after winning the all important toss, chose to field first on a placid, high scoring pitch in Nagpur for surprise of every one. Knowing that the services of his prime strike bowler are not available, one wonders what made Ponting to field first on an excellent batting pitch. Expect for getting the wicket of Tendulkar early, nothing went right for Assies. Indian batsmen scored runs at will. Suresh Raina and Sewag contributed runs at very good strike rate. Dhoni led the team from front and scored a match winning century. Chasing 350 odd runs by any team on any pitch is not easy. Assies lost wickets in quick session. There were no partnerships. There was need for a cameo innings from some one like M.Jhonsen. Ahead of him Ponting sent the inexperienced Voges, Shuan Marsh, knowing well the cameo innings Jhonsen is capable of. He was sent in after the fall of five wickets, with only 12-13 over remaining to do the impossible. It appears Ponting wrong judgment might have cost them the match.

CONGRESS SHOULD CHOOSE ITS ALLY CAREFULLY

For the forthcoming election in Jharkhand, scheduled for December, the Congress should choose its ally carefully. Leaders with criminal records and leaders with charges of corruption should be kept out of pre-poll alliance/any alliance. Voters are interested in good governance, stability, communal harmony and development. Jharkand which is in rich in natural resources is one of the most backward states in the country. However, the previous governments, for various reasons could not exploit this strength to the maximum, developmental activities were minimal. A strong, stable government with focus on development will take the state to greater heights. The situation is tailor made for Congress.

BJP NEEDS BOTH

The RSS chief Mohan Bhagwat is right in suggesting that BJP needs either surgery or chemotherapy and they themselves should decide what they need (DNA 28-10-09). I think BJP needs both, for complete over haul and image make over. The performance of the party under the leadership of Rajnath Singh as the party president is very un impressive. The party has lost miserably in the Lok Sahha elections and its performance in the three states that went election this month is lackluster. The party’s image took a severe beating in Jaswant Singh episode. The internal bickering, indiscipline (Raje’s defiance in Rajasthan and Reddy brothers’ behavior in Karnataka, among others) makes mockery of the so called cadre based and disciplined party, a laughing stock. Rajnath Singh remarked Bhawat’s suggestion as mad. Only time will who is mad. But there is urgent need for change of the leadership at the highest level with people who are young, dynamic and has vision to attract the masses.

RIGHT MEDICINE

The RBI, in its credit policy review, has increased the requirement of SLR by 100 basis point to 25%. The other key rates, including CRR, REPO and reserve REPO rates kept unchanged. The RBI has rightly tightened the provisioning norms for NPAs. The reality sector which was expecting some favorable policy decision been disappointed. This kind of independent, pragmatic policy measures taken by RBI has saved the country from financial melt down as experienced by some Western countries during the last year. And it so no surprise that RBI has been hailed as one the best regulator in the world.

WRONG ALLEGATIONS

APPEARED IN DNA MUMBAI ON 28-10-09


The allegation by Pakistan’s interior minister Rehman Malik that India is funding Taliban (DNA 27-10-09) is a joke. The whole world knows that the Taliban is creation of establishment in Pak to wage proxy war against India. It is continuously nurtured and funded by the successive governments of Pak. When things are going out of control, (the recent series of bomb attacks by extremists there) the Establishment has chosen the wildest improbable to blame India for existence of Taliban.

OZ IS NOT SAFE

Cricket fans love Gilchrist. The way he demolishes the bowlers of his opposite side. The way he can single handedly win matches and the way he can bring victory from the jaws of defeat for his side. The gentlemanly behavior on the field. That is cricket. But his assertion in Pune that OZ is still safe for students is not correct. He has termed the incidents as generic and could happen anywhere. The problem is not generic, it is the attitude and mind set of the people. The series of racial attacks on Indian students in Australia are appalling to say, the least. The students have been attacked without any provocation. It is indication of growing frustration and non-tolerant attitude of Australians against India which is emerging as a powerful economy. Equal or number of Indian students go to USA for studies. No such problems in America. As good will ambassadors, Australian cricketers must put pressure on their government to take preventive action in this respect. Advice to Indian students – chose Australia as a lost resort for higher education, since some of the Universities there are fake and it is an unsafe destination.

MNS: A MAJOR OPPOSITION PARTY IN 2014

Contrary to the expectations of Shiv Sena and BJP, Raj’s MNS has performed remarkably in the recently concluded assembly elections in Maharastra. MNS has made strong in roads into the Sena bastions in the cities of Mumbai, Thana, Nashik and pune. Apart from securing 13 seats they came second and third in many constituencies. Again this is a very credible performance for a three year old party. Raj Thackeray has the knack of connecting himself with the voters, particularly the young ones who matter most in the elections. His party promises to solve the problem related to migration, slum rehabilitation, power shortage, encroachment and host of other civic problems. MNS appears to be sincere in finding solutions to the above perennial problems. MNS is likely to be a major player in Maharastra politics in the years to come. Considering the progress they have achieved in a very short period, they are likely to garner lion’s share of seats in the Municipal/Civic elections in the above cities, as and when election are held. And it will not be a surprise if they emerge as a major opposition party/power player in the 2014 assembly elections.

IPO WATCH: DEN NET WORKS LIMITED

GROSSLY OVER PRICED – AVOID SUBSCRIPTION


Den networks limited is entering the capital market with public issue of 20,000,000 equity shares of Rs10 each in the price band of Rs 195-205. The company intends to raise around Rs 400 crores from the issue. The issue is slated to open on 28-10-09 and closes on 30-10-09. Deutsche Equities India and Antique Capital markets are the BRLMs.

The company is promoted by Sameer Manchanda and Lucid systems pvt. Limited.
The funds raised will be utilized for company’s cable television and infrastructure services, for acquisition of content and broad casting rights and for general purposes including part repayment of existing loans. The project has not been appraised by any bank or financial institution.

The company’s revenue growth heavily dependent on conversion of analog cable subscribers to become digital cable subscribers, in the highly competitive Television distribution industry. Also the company has limited experience in Broad band cable internet services, the other segment which it is interested.

The company has no track record of profitability, dividend payment. It has reported losses for the years 2008 and 2009 and had negative cash flows. The company also is heavily indebted. The average cost of acquisition of shares by promoters - Lucid systms and Sameer Manchanda is Rs 0.40 and Rs 8.80 respectively.

Neither the company’s past track record nor future business prospects justifies the very high premium on shares.

GROSSLY OVER PRICED. AVOID SUBSCRIPTION

WRONG SELECTION

Vinod Kambli has lost the assembly election from Vikhroli, Mumbai. He has lost his deposit too. Unlike his peers N S Siddhu, Mohd. Azaruddin, KAMBLI chose a wrong party to make his political debut. Very few know his party –Lok Bharati. Party and symbol are most important in an election. He is not that popular like SHARUKH KHAN, AMITAB OR SACHIN TENDULKAR to contest on any party ticket and get elected. Politics is a long term game. If he is serious about his chosen line, he should connect himself with the voters of his constituency and work sincerely in finding solutions to the chronic problems faced by the citizens of the constituency. He should try to associate with a national or a strong local party and try to build his political career slowly.

SILLY BJP STATEMENT

APPEARED IN DNA MUMBAI ON 24-10-09


The reaction of Abbas Naqvi, senior leader of BJP to the out come of results of assembly results of the three states terming EVMs as electronic victory machines for Congress is unfortunate. It appears that statement has come out of sheer frustration. The BJP, as expected had fared very badly in the election because of loss of image at the national level, infighting and lack of leadership at state level. Instead of accepting the defeat gracefully and introspect on the same our BJP leader has chosen the blame the EVMs.Modi in Gujarat, Chauvan in M P and B S Yediyurappa in Karnataka all rode back to power and the same EVMs were used in those elections also. Why Naqvi did not raised this issue at that time. People of this country are not that fools to buy his story.
It is time for BJP to re-think on its programme, policies, ideology and strategy if it wants stay as an alternative to the Congress party.

POSER TO AMBANIS

The fighting between Ambani brothers has been termed by the country’s apex court as countries at war. Here is a poser to Ambanis – Had there been no split in the family, whether Mukesh’s RIL still had taken the same decision of increasing the gas price from $ 2.34 per mmbtu to $ 4.20 per mmbtu for supply of gas to RNRL and whether Anil would have opposed the move as he has done now. The answer to both, probably – no. Then what is that they are fighting. Their respective counsels should enlighten the public and the share holders of the above companies in this regard.

IT HAPPENS ….. SOMETIMES

The detention of Parvez Rasool, cricketer from J and K by Bengaluru city police has made out as over-zealousness and incompetence. (DNA 21-10-09 Nano edit - Not cricket at all) The track records of Bengaluru police in nabbing terrorists are excellent. The integrity, sincerity and efficiency of the police force, particularly the present police commissioner Shankar Bidri can not be questioned. It happened because of faulty functioning of the machine or just human failure. There are thousands and thousands of Kashmiris living in the city of Bengaluru and they are not subjected to this kind of detention. Security is a serious issue, and such thing happens in routine check –up and it can happen to any one. One should not read too much into it and blame the entire force as incompetent.

PREVENTIVE ACTION NEEDED

The crime branch of Mumbai police should be congratulated for nabbing M Y Kadam and D Tulaskar who are accused of duping more than 2000 investors of Rs 6 crore plus. ( Duo dupes 2000 investors DNA 21-10-09). Public also should be careful in making investment in ventures that offers very high returns. There are no legally sustainable business models where one can double his investment in just 30 days. If there is one, the promoters will not offer that business model to others. They themselves will invest all the money they can and expand/improve their wealth. Public should check the credentials of such promoters before investing. The crime branch should keep an eye the fraudsters who regularly advertise in leading news papers of such schemes. Prevention is better than the cure. They may take assistance from retired Police/CBI/Bank officials/others to strengthen their net work.

MOVE IN THE RIGHT DIRECTION

The HRD minister’s proposal to raise the eligibility bar for the Joint Entrance Examination (JEE) is a move in the right direction. (DNA 20-10-09). The students with only aim of securing a better rank in the entrance examinations are neglecting the regular studies and concentrating more on coaching classes. Through this mad coaching class culture students are more interested in JEE ranking than acquiring knowledge in the chosen subjects, since the syllabus of the coaching classes are designed in that manner. More over, only the students from affluent families are benefited from this culture, because of their ability to pay, to the disadvantage of the students from poor/middle class back ground. This proposal to some extent put an end to that dis parity. It is also alleged that some students bunk the classes for the whole year and camp in the so called Mecca of coaching classes (Kota in Rajasthan etc). The get proxy attendance in connivance with school management. The HRD ministry should also look in to this matter, since this gives some students un due advantage in the JEE.

WRONG ASSESSMENT

In the article’ No election is an echo of the past’ by M J Akbar,(TOI 18-10-09) that the vote share of ‘others’ shall be around 26%, based on the voting pattern in the general election in May -09,adding Republicans share of votes to ‘others’ kitty, since they are out NCP-Congress alliance, may be wrong. Assembly elections are fought on different issues and many local factors play a major role in election of candidates. The Madhu Limaye theory that political party began to convert votes into seats at geometrical progression only after its base crosses 23% share does not hold good others (Independents and smaller parties). According to that theory others should get around 75 seats. Most un likely. Percentage votes polled, directly does convert into seats even for major political parties.

DOES IT MAKE ANY DIFFERENCE?

The news of Ambani brothers taking salary cut appears in all leading dailies as head line. (Mukesh Ambani takes Rs 29cr salary cut - DNA 16-10-09). Does it makes any difference to their life style nor contributes more to the exchequer? It does not. Then what is the big deal that is making the head lines. Apart from salary income, they get commission on company’s profit, income from investment made in various projects. More over all their expense are taken care by flagship companies by virtue of them being CEOs. Then what is that they are sacrifing to show solidarity with the people who are affected by draught. If they are really concerned, they should contribute a few hundred crores of their personal wealth to PM relief fund.

TN GOVT SHOULD ACT TOUGH

The attacks on Dalits who were trying to enter a temple in Nagapattinam district by non-dalits calls for severest punishment as per law. (TOI 15-10-09) The act is barbaric and un-civilized. These kinds of incidents make dalits to take extreme steps like conversions and moving towards Maoism as they are rejected by the people of their own religion. The TN government should book cases against the accused. The temples all over the state should instructed for allowing dalits to enter the same without any discriminations and fear. We should try to build a casteless society and not caste conflict society. The Center and the State government should enact law making it mandatory for temple management to have at least two dalits as priests in every temple. Tough call. But urgently required.

WSATE OF MONEY

The AP health minister and Greater Hyderabad Congress Committee president Danam Nagender’s announcement that at least 30 statue of YSR will be installed in Greater Hyderabad area is waste of public money. (TOI 15-10-09). Congress party accuses Mayavati for trying to install memorials of late Kanhiram, the BSP symbol and statue of Mayavati herself in UP and the matter is before the Supreme Court. In A P the same funds can be better utilized for building schools and hospitals in the same locality. Congress high command should interfere in the matter and should stop these acts of sycophancy.

CHINA SHOULD MIND ITS OWN BUSINESS

The protest by China against Prime Minister Man Mohan Singh recent visit to Arunachal Pradesh is un warranted. (China protests against PM’s Arunachal visit DNA 14-10-09). Arunachal Pradesh is integral part of India and China is making un-necessary provocation in this regard. India is not Tibet to be bullied around. Instead of raking this kind un-wanted issue, China should try to further improve the relationship with India based on trust. China should not spoil the relationship built over so many years in its own interest lest the bilateral trade and commerce will work against to its dis-advantage. And India shall have to re look at its foreign policy towards China.

SUPPORT BSY

Karnataka CM’s initiative in tackling flood fury deserves to be congratulated and every one should support whole heartedly. Opposition parties should not see politics in it. The government employees should sincerely work extra hours as requested and involve themselves in rehabilitating the people in flood affected region. These kinds of natural calamities require support and commitment from every citizen.

BAD CORPORATE GOVERNANCE

The special auditors appointed by DOT to look into the alleged evasion of licence fees and inflation of revenue and other irregularities have pointed out the glaring mistakes committed by the country’s number one telecom player. (DNA money 13-10-09). Anil Ambani is on war path with Reliance industries limited for alleged breach of contract, bad corporate governance and greediness. As expected the response from Rcom was, we are yet to receive the report and there are no irregularities or fudging of accounts. There can not be smoke without fire. And if probed further, they may come with the explanation that they did it for the benefit of the share holders. For some, corporate governance is simply on paper or talking point.

DIFFICULT ROAD AHEAD

APPEARED IN INDIA FORBES MAGAZINE - 06 NOV 09 ISSUE UNDER THE CAPTION - RETAIL THERAPY.


The story of world’s biggest retailer Walmart is very interesting. ( India Forbes -Walmart passage to India Oct 23 -09). However, Walmart has had very little or no success out side the US. The regulatory support that exists in US is non-existent out side the US for various political and economical reasons. The infrastructure, the efficient supply chain management, the logistic support that it has built over the decades in US and most importantly the mad consumerism in US has largely contributed to the success story. Again these are non-existent in our country. The back bone of Indian retail business is credit. Being a poor cum developing economy, the poor and the middle class contributes significantly to the retail business volume. The purchasing power of consumers in this segment is very low and limited. Hence, credit plays a major role in volume business. The local kirana stores have advantage over the big players as they offer credit to selected customers. And similarly the kirana stores enjoy credit facilities from wholesalers and distributors. The easy accessibility to kirana stores is another plus point compared to the players like Walmart which are normally located in out skirts of the cities where in the people residing in that particular area can access such sores making it difficult to reach more consumers. Walmart is a volume player. The kind of regulation, the infrastructure, the logistics and the purchasing power the urban poor and middle class have in India makes the road ahead for Walmart a difficult one.

SHUN VIOLENCE

The brutal killing of Jarkhand Police inspector Francis Induwar by Maoists deserves condemnation by all. (Brute Maoists invite early action DNA 08-10-09).If the Maoists are serious about finding solutions to the problems that are faced by the tribals through out the country, they should join the mainstream politics and put forth their ideology and solution they have to solve perennial problems instead of fighting like a coward. These cowardly acts will not help any way in mitigating the problems. Maoists/Naxalites should fight for their causes through peace full means. They will not be able to achieve even one percent of their goal with these kinds of heinous acts even if they fight for one thousand years. LTTE, the most dreaded and feared organization could not achieve anything for its Tamil population by violent means in a tiny country like Srilankha. There are lessons to be learnt from the collapse of LTTE in Srilankha. The present day government at the Center and at state level has shown considerable interest in finding peaceful solutions that are engulfed the tribals in the country. It is only through negotiation the problems can be solved to the satisfaction of both the sides. It is not too late for Maoists to come and join the mainstream and have talks with the respective governments.

NATIONAL SHAME

APPEARED IN DNA 0N 08-10-09 UNDER THE CAPTION : SHABBY TREATMENT

The treatment meted out to P T Usha, the greatest athletes of our time, at Bhopal is national shame. (DNA I was forced to beg 07-10-09). The officials promptly bruised the issue as a result of a ‘lack of communication’. It is not the lack communication it is the lack of understanding and commitment towards sports administration. P T Usha’s contribution to sports is no less than that of top cricketers of that time. However, in our country only the cricket gets more attention than it deserves and other sports are neglected. It is time that the sports administrators change their attitude and administrator the sports in a professional way as done in most developed countries. This kind of incidents dampens the spirit of young athletes for whom P T Usha is iconic personality. Our sprint queen and golden girl of yester year deserve to be congratulated for exposing the shabby and careless attitude of sports administrators. Long live cricket.

MAYA SHOULD DISPLAY SOME MATURITY

The on going tussle between the country’s apex court and UP government over the construction of memorials amounting to Rs 2600.00 crores and violation of apex court order by Ms Mayavati makes mockery of our legal and political system. Mayavati who has seen many ups and downs in her political career is aware that power is not permanent and only good the governance brings her back to power and not memorials. The same amount could have been better utilized for various developmental projects in one the country’ biggest and poorest state. And she should not tag dalit card to every thing.

IPO WATCH: INDIA BULLS POWER LIMITED

The Issue : INDIA BULLS POWER LIMITED proposes to issue 33,98,00,000 shares of Rs 10/ each with a green shoe option of 5,09,00,000 aggregating to 39,07,00,000 in the price band of Rs 40 -45 . The company intends to garner around Rs 1700 cores from the issue. The issue is slated to open on 12-10 -09.

Promoters: The project is promoted by IBREL. Foreign investors FIM limited and LMN India internet ventures limited hold17.9 and 10.7 percent respectively.

The project: To set up power generating units with total capacity of 6600MW in different states. Although 16 Banks /institutions have committed funds to the extent of Rs 6,525.00 crores for the project, no Bank or Institution has independently appraised the project.

Industry/Competition: Highly competitive capital intensive industry. The promoters have no experience in the power generation business.


Other points to note: The Company is yet to obtain some clearances. For Chattisgarh project the land is yet to be acquired. First unit to be commissioned in June 2012. Heavily indebted company. The promoters have acquired 118, 50, 00,000 shares at an average cost of Rs 5/.

IPO grading: The rating agency CRISIL has assigned Grade 3 indicating average fundamentals.

The company has no business track record. Hence share premium of Rs30-35/ is not justified.


Recommendations: Considering the inexperience of the promoters, long gestation period and heavy indebtedness, investors may avoid subscription.

FUND MANAGERS SHOULD TAKE CUE FROM OUR POLITICIANS

The declared assets our politicians has shown substantial growth in 2009 compared to their assets in 2004. (Pawar lead charge in political family wealth DNA 05-10-09). It makes our business men and industrialists ponder over their ability to create and manage wealth. The assets of our politicians have shown substantial growth in spite of recession in the economy, needs to be specially appreciated. Our fund managers should take lessons from our politicians how to increase the wealth irrespective of GDP growth and market conditions. Our politicians declared aim is to work for the poor, down trodden, weaker and other un fortunate sections of the society. However our poor voters continues to be at what they were many years ago, where as their netas have become the wealthiest and still they proclaim that their entire life is dedicated for the up- liftment of the poorest of the poor. Long live our democracy and our politicians.

JAGAN WAS NEVER AT THE BUS STOP

The article by K V Ramana that Jaganmohan might have missed the C M bus has no reasoning.(DNA 02-10-09). You will miss the bus only if you are at the bus stop. Jagan was never at the bus stop. Neither has he had the proven track record nor the experience to occupy the highest post. Some loyalists and sycophants wanted him to be the C M to implement their hidden agenda through an inexperienced person. Being a CM’s son does not mean, that you will be made CM on some happenings. The death of YSR has crated a vacuum in the state and the Congress high command has rightly chosen the experienced Rosaiah to the CM’ post. Jagan is still young and should work for the party and prove his mettle before aspiring for the coveted post.

GOVT. SHOULD REMAIN IN AVIATION BUSINESS

In the editorial ‘Air pocket again’ (DNA 30-09-09) the reason for the present day status of our premier air line has been rightly analyzed. Decades of mis/inefficient management of the airline has brought the Maharaja to what it is today. Ill-advised merger, unplanned expansion and bad financial management have put the Air India in ICU and not the competition. SBI and other public sector banks have set an excellent example that in spite of severe competition from new generation private banks and aggressive foreign banks, they can do business better than the competitors, if you know how to manage. The government should revamp the board and undertake a major surgery on its internal functioning. The employees in their own interest should cooperate with the management and agree for some sacrifice during this turbulent period, until such time the Maharaja starts making profit. When it comes to taking the commuters for a ride, the private airlines are no better, as we have witnessed recently. If the only public sector player in the aviation business ceases to be the player, in the very first day itself the private airlines will form a cartel and exploit the situation to the disadvantages to the commuters.

HERCULEAN TASK

The Center’s mega plan of making India slum-free country in the next five years is appears to be a very toll order. (DNA 30-09-09). This Herculean task requires sincere efforts by both the Center and the respective governments. The Center should enact laws in such a way, that only the government agencies be it either Central or State are the only permitted nodal agency for such rehabilitation schemes and no builder/middlemen should be entrusted with such assignments as is being practiced by some state governments in the country. In the name of slum development these builders make lot of money for themselves. Government should also build schools and hospitals in the same locality for the benefit of the local population including the rehabilitee slum dwellers.

ALL ABOUT RELATIONSHIP BANKING

The news, that ICICI bank will block all cards issued by it to a customer if he/she defaults on any one of them appears to be very harsh and un-relationship banking. (TOI 29-09-09) The bank official has quoted the practice in the west, particularly in United States. The procedures followed in US for issuing credit cards are different from what the card issuers follow here. What is good for US is not necessarily good for India. There fore ICICI BANK should go to the root of the problem. Credit card defaults are directly proportionate to the misplaced aggressiveness the issuers adopt while issuing cards to its customers. Card defaults are more with banks like ICICI and other foreign banks that are aggressive and interested in growth percentage of card business. These banks issues cards through third party arrangements, the so called DSAs. The DSAs are interested in generating revenue for themselves. To shore up the numbers they some time suppress the vital credit information/ submit fudged documents to the card issuing banks. The end result is undeserving getting the card and misusing the same. In a country like ours there are occasions even the highest rated customer of the bank may defer/delay/default payment for reasons beyond his control. Generalising the rules for one and all will affect the credibility and reliability of the bank. ICICI bank, in spite of in the business for very long time has not learnt that banking is not only about money but it is also on how you manage the relationship with the customers. It is too not late to withdraw the draconian guidelines.

LESS FII INVESTMENT IS BETTER FOR STOCK MARKET

APPEARED IN DNA MUMBAI ON 30-09-09 UNDER THE CAPTION MARKET MANIPULATION


R. jaganathan views on ‘Why India may get lucky once again’ was excellent. (DNA 28-09-09).However certain points are overemphasized. The markets movements are although an indicator of the health of the economy and confident booster for potential investors - both local and foreign, the stock indices are some times misleading and confusing. We have seen how one Harshad or Ketan can take the markets to dizzy heights by pure manipulation. Because of slow down in US and European economies, FIIs may prefer to invest in the emerging economies like India, China and Brazil. But, for a country like ours too much FII investments in stock market is fraught with danger. Our stock market /small investors are not matured enough. When FIIs start investing heavily in markets here the indices goes over the roof, the small investors being caught unaware. During the buoyancy without understanding the dynamics of the markets they make investments and soon they realize that they have entered the market at the wrong time because the so called FIIs who were responsible for the indices to hit the highest point, start withdrawing/selling their investments, once their desired percentage of return on investments are achieved leaving the small investors in the lurch. (FIIs are not charitable institutions who help small investors to lead a comfortable life). Once the small investors’ confidence is shattered no market will hold for long time. And we will be back to square one.

MULTIPOLAR WORLD: BAISED VIEWS

The views expressed by NiIotpal Bose, member CPM politburo that the fears about China’s incursions into India are both misplaced and misguided are biased. (DNA 28-09-09). China is not a country of Saints. Basu quotes of America’s invasion of Iraq and Afghanistan. But there is no mention of China’s invasion of Tibet in1960s and torturing of the innocent native Tibetans which even now continue against those who oppose its authority. They refuse to have any dialogue with their spiritual leader H H Dalai Lama and spy his movements with hawks’ eye. There are reports of China discreetly helping PAK in building its nuclear capability. In UN, it supports PAK, our historical enemy with its Veto power. With all these so very evident, our CPM leader wants us to trust China on border disputes.

HALF - BAKED MIND SET

The assertion of PAK external affairs minister Shah Mehmood Quershi in New York that the proof provided by the Indian Government on 26/11 attackers are half-baked is ludicrous. (DNA 27-09-09). And because of this, they are unable to prosecute the culprits. The Indian government has provided more than required proof against the perpetrators of Mumbai attack. PAK is simply not interested in taking action against the offenders for the reasons best known to them. The proof provided by India is not half-baked it is the mind set of the Establishment in PAK is half-baked. On one pretext or the other the PAK is delaying taking actions on the terrorists who attacked Mumbai. Assuming for a moment that the proof provided by the Indian government is half-baked, the request for action is made by the largest democracy in the world, supported by the mightiest countries (other than China, for obvious reasons) of the world. Any right thinking and responsive government would have taken action barely on the request made without going into the details of so called proof. But our good neighbor does not do that. This gives reasons suspect whether such heinous acts were carried out with the tacit understanding and the support of the establishment there. Only time will reveal the ‘true’ intentions of PAK in its role in curbing the terrorists activities on its soil or otherwise.

FIGHTING CORRUPTION: WHO WILL BELL THE CAT

The former CBI director R K Raghavan views on corruption in public life are well thought out. (DNA 23-09-09). There is urgent need to change the laws regarding obtention of requisite permission for registering cases when the corrupt babus are caught pants down. But the basic question is why our babus and other public servants are corrupt?
Apart from comparatively not so attractive salaries, what makes them to indulge in corruption? Our political bosses. Our babus and other government servants know the many corrupt ways of our politicians’ right from fighting election to the seat of power. They are just following their leaders. So the fight against corruption should start from the cleansing the political system. The Prevention of Corruption Act 1988, even if it is amended with suitable clauses as desired by the experts will not bring the desired results in fight against corruption, unless our political leaders are honest. Then, who will the cat?

IPO WATCH: THINKSOFT GLOBAL SERVICES LIMITED: OVER PRICED

The Chennai-based Think soft Global Services, a financial software testing company, is entering the capital market with an initial public offering of 36.46 lakh shares. The issue will open on September 22 and will close on September 24. The price band has been fixed at Rs 120-130 per share.
The IPO will consist of a fresh issue of 13.5 lakh fresh issue of equity shares and offer for sale of 22, 96,000 shares.
The company is promoted by Mr. Asvini Kumar; Ms Vanaja Anand and Mr. Mohan Parvatikar.The Company has consistent performance in the last 5 years both in terms of revenue generation, profitability and dividend payment.
The proposed activities are not appraised by any Bank/Financial Institutions. In fact there are no definite projects. It appears the main object of the issue is to provide an exit route to certain investors.
The company is Banking Financial Services and Insurance (BFSI) focused software testing enterprise. Highly competitive segment. Success depends on retention of key employees.
IPO GRADING: CARE has assigned grade 2 indicating below average fundamentals.
The issue is grossly over priced. AVOID SUBSRIPTION.

IPO WATCH: EURO MULTI VISION LIMITED

The Gujarat based Euro Multivision Limited, proposes to issue 88 lakh equity shares in the price band of Rs70 -75. The object of the issue is to part finance the Photovoltaic Solar cell manufacturing unit. The issue is slated to open on Sep-22 and closes on September 24.

PROMOTERS: Promoted by Nenshi Shah and associates who are into manufacture of ceramic tiles under the brand name ‘EURO’. There are number of cases pending against the promoter/group in respect of IT/Customs litigations amounting to Rs 38.37 crores.

PROJECT/ PRODUCT: The Company proposes to set-up P V cell unit, which is a new segment for the promoters. The appraisal of the project has been done SBI in Dec 2007.It is almost two years from the date of the appraisal. Originally the trail production was to commence from Oct -2008.There is delay in project execution. The company is yet to obtain some statutory approvals from the appropriate authorities.

The project has been appraised by SBI which has extended term loan of Rs80.00 crore. However, the bank is not managing the Public issue and the bank is not even bankers to the issue.

FINANCIALS: The net profit margin from the exisisting activity – Compact Disc Recordables and Digital Versatile Disc Recordable has taken a severe beating in the year 2009 compared to the previous year. Raw materials consumption which was around 50% of sales in 2008 has gone beyond 60% in 2009. The group’s listed company - Euro Ceramics Limited whose book value is more than Rs 100.00 is languishing at less than half its book value in the stock exchanges.

IPO GRADING: The rating agency CARE has assigned Grade 3 indicating average fundamentals.

CONCLUSION: The promoters have no experience in the chosen line. There is delay in implementing the project. Financials are not sound. Promoters’ contribution to share capital is at par. The issue is very aggressively priced. Avoid subscription.

AUSTERITY DRIVE: MORE ACTION NEEDED

The ruling UPA at the Center has advised its ministers to exercise great caution in their spending on hotel and travel bills in view of prevailing draught situation in many parts of the country(TOI 14-09-09). The money so saved is nothing compared to our developmental and non developmental expenditure per annum. But, that is an indication of the mind set of the people at the helm of affairs and how serious the government in providing much needed relief to the needy farmers. The paradox of our democracy is that the representatives of the people are very rich and the voters are very poor. Look at the assets declared by the LS seats aspirants before the election. Details are with the Election Commission. The asset owned by them ranges from minimum of Rs 3 crores to Rs 700.00 crores. We are talking of only what is declared. If the politicians/political parties are genuinely interested in the pathetic conditions of our farmers, why can not they donate 10% of their declared wealth to National Disaster Management Fund to be administered by the PMO? The funds so collected shall be distributed to the affected districts basing on the sever ness of the draught to be monitored by the MP of the area in a transparent way.

MR.MUSHARAFF PLEASE COME CLEAN ON OTHER MATTERS

The former Pakistan president Pervez Mush raff has admitted that the aids provided by the United States to Pakistan for the fight against terrorism during his tenure was misused to strengthen the defenses against India. (DNA 14-09-09) Earlier, Mr.Zardari, the present P M has accepted the fact that the terrorists in their land are created, nurtured and supported by the Establishment. The 26/11 attack on Mumbai is carried out by terrorists by tacit understanding and the support of PAK military and ISI. Including Mr. Zardari the establishment denied any involvement. The government of India has provided enough proof that the attack was carried out by out - fits that are sheltered and protected by the Government of PAK. So for no action has been taken against the perpetrators of the attack. The PAK government is not cooperating with India in this matter. The dreaded international gangsters, drug peddlers and terrorists are living like Moghul emperors of yester years with active support of the government. India has given a list of most wanted international criminals who are sheltered in PAK. It is time that Mr. Mushraf comes out clean on other matters including the 26/11 Mumbai attack.

APPEARED IN DNA MUMBAI DEITION ON 15-09-09

INFOSYS: IT IS TIME TO PAY BACK

While addressing the meeting organaised by Confederation of Indian Industry (CII) in Chennai, Mr. Kris Gopalakrishanan, among others has indicated that there are problems for expansion particularly with regard to land acquisition, air and telecom connectivity and other infrastructure support. For more than decade the Center as well as various state governments has provided the necessary support by way allotting land at confessional rate, waiver of stamps fee, income tax waiver and other concessions through STPs. Infosys is also is one of the beneficiary of such concession which has made the company what it is today. The company is sitting on cash equallent to almost $2 billion rupees. The founding directors and other senior executives of the company are each worth more than few hundred crores. The company boosts of creating thousands millionaire employees. In spite of getting adequate support from the government from time to time, Mr. Kris Gopalakrishan has chosen to blame the government for inadequate availability of land and other infrastructure facilities in tier I and II cities as the reason for delay in expansion. The czars of I T industry instead of blaming government should buy the land at market price (as being done by other industries) and build roads and infrastructure at their own cost as a token of gratitude for the benefits enjoyed so far from the governments. The cash rich Infosys should take a lead in this social corporate responsibility.

FRAUGHT WITH DANGER

The views of Mr. G C Chaturvedi, Additional secretary, department of Financial Services, Ministry of Finance, that Public Sector Banks can draw lessons from the private sector on out sourcing is fraught with danger (Business Line 09-10-09). Any out sourcing in banking amounts to sharing of sensitive customer information. In the era of cyber age banking data can be misused by the solution providers (who are not accountable to the banks customers) bringing disreputation and mis-trust to the banks concerned. Banking is about trust and credibility. Public Sector Banks in India are more trustworthy and have better credibility compared to their counter part in the private sector for obvious reasons. His other suggestion of variable pay in public sector banks might be difficult to implement given the basic purpose and characteristics of public sector banking that is social banking as compared to private sector banking whose motto is to maximize the profit without any social responsibility.

HEIGHT OF IMMATURITY

The Jet Airways chairman Mr. Naresh Goyal’s statement that the ‘Pilots are behaving like terrorists’ (DNA 10-09-09) is laughable. The on going tussle between National Aviation Guild (NAG) and the Jet Airways management has not happened over night.
The pilots association has demanding for revocation of suspension of three of pilots for a very long time. The management for the reasons best known for themselves neither took back the sacked employees nor engaged in any meaningful dialogue with the association. It is not the pilots who are behaving like terrorists; it is other way round-the management. The management’s decision not engage in talks with the pilots association speaks volumes about its HR policy. Mr. Goyal is in the business for quite long time and is aware that the employees are the prime asset of the company and not the aero planes he owns. It is the employees who generate the revenue and build reputation not the machines. The Jet Airways is already in Red because of competition, recession and this, what could have been avoidable situation has damaged the reputation of the management as unreliable airline. It is not too late for the management to concede the just demand of the employees and try to salvage its maligned reputation.

SHINDE’S APPOINTMENT: POLITICAL MASTER STROKE

The Congress high command decision to appoint Mr. Sushil Kumar Shinde as the head of the state poll campaign committee is a master stroke. The move will help the dalit votes to consolidation in fauvor of the Congress. Mr. Shinde’s clean image and the good work done/initiatives he took when he was the CM for the uplifment of the backward class and dalits will go along way in un-settling the conglomeration of 21 political forces lead by RPI chief Mr. Ramdas Athavale. The MNS is sure to eat into Sena vote bank and may emerge as a strong political outfit. The image of the BJP is very low because of the happenings at the party’s head quarters at New Delhi. Compared to the preparedness of the Opposition parties, the Congress-NCP combine is well placed to fight the election. It is likely that this combination will come back to power and that credit should go to Mr. Shinde, who should be made CM to continue the good work he initiated earlier.

BAN ON HORSE CARTS: ALTERNATIVE JOBS NEEDED

‘Basanti ‘call for ban on the horse carts is a move in good direction. (DNA 07-09-09)She has alerted the RTOs by writing a letter, how Tanga owners inflict cruelty on their animals. That is one side of the story. The other side is what will happen to the hapless owners whose only source of income dis appears into thin air. What is the alternative plan our ‘Basanti didi’ is proposing. This problem is not restricted to Thane alone. It is prevailing in other parts of the country too. Most of the so called owners of the Tangas are un- educated and hence it will be difficult for them to find alternate employment. I suggest MS Hemamalini to invest certain amount in a trust to rehabilitate the displaced Tanga walas. They can be provided training in the field, which they have interest, including switching over to auto rickshaw driving. Ms Hemamalini can use her contact and involve some more credible charitable trusts in this mission on a large scale.

APPEARED IN DNA MUMBAI EDITION ON 09-09-09

IT HAPPENS ONLY IN INDIA

Ms SHOBHAA DE article on Searching for clues: It happens only in India (TOI 06-09-09) is very interesting. Although the nation has lost four other souls, coverage on TV channels was mainly on YSR. There were passing references to the other four by some channels. Introspection time for TV channels. The sycophants are trying to install Mr. Jag Mohan, son of YSR, as CM, although he lacks experience and administrative knowledge. Jag Mohan is very young and he has a long way to go before he aspires for that coveted post. One hopes better sense prevails on the Congress high command.
The swiftness shown by the Center in taking required action was amazing to say the least. There was involvement of ISRO, Army, remote sensing air craft, local police, forest department officials, paramilitary forces, local guides and what not, that too in a very short time. Kamal hai! As rightly pointed out this kind of action was definitely missing during the Mumbai attack on 26/11. Long live India.

JLR ACQUISITION: WRONG MOVE

The TATA MOTORS decision to acquire JLR, two global brands, is proving to be costly going by the results declared by the company in the last two quarters. The dynamics of the luxury car market has changed with the advent of hybrid - electric cars, with sustained technology. The growing demand for oil, in spite of, recession through out the world, is likely to push the price beyond $ 100/barrel. This acts as a deterrent in the already subdued segment. Look at the financials of its competitor –Maruthi, the country’s largest car maker. It is churning out better than expected results quarter after quarter. It relays on numbers. Its mid sized car and lower end model contribute substantially both to the top and bottom line. It makes sense to increase the numbers in the fully depreciated plant, which will have direct bearing the profitability of the company. The newly acquired brands -JLR are neither going to contribute to the numbers nor to the bottom line.

HIGH COMMAND SHOULD SAY NO TO SYCOPHANCY

The death of YSR is un-bearable loss to the country in general and to the state of ANDHRA PRADESH in particular. In spite of reasonably good performance of Mr. Chandra Babu Naidu between 1999-2004, YSR single handedly brought the Congress to power to the surprise of all political pundits in 2004.. Even in 2009 many had written in off citing reasons of incumbency and most importantly Mr.Chiranjivi’s factor. Again YSR proved his critics wrong by bringing back Congress to power and playing a pivotal role in sending 33 members to the Loksabha. The various developmental projects under taken by his government has reached the real beneficiaries. The untimely death has created a void in the state. He was hard working visionary, mass leader. It is very difficult to fill the void. A section of the state leadership wants his son Jaganmohan as CM. This is nothing but sycophancy of the highest order. Mr. Jaganmohan deserves all the sympathies. The untimely death has hit him hard more than any one/any organaisation. The move to make him CM has no logic nor has any rationale. He is inexperienced and lacks administrative knowledge to occupy the highest post of the biggest and one of the most progressive state. The leader should be choosen from the galaxy of experienced and efficient politicians. Mr. Jaganmohan can be accommodated in the state cabinet with an important portfolio. Other wise,he can be inducted to the union council since he is a member of the parliament.

HSBC CREDIT CARDS PAYMENTS: FLEECING THE CARD HOLDERS

The HSBC bank, one of the leading foreign bank and a major player in the credit card market has sent a special message to its card holders, that W.e.f 15-sep-09, a cash payment charge of Rs 100/ will be levied at its branches and drop boxes. This is nothing but fleecing the customers who make prompt payment on their card out standings. Banks are supposed to accept cash payment without any charges particularly with regard to any amount due to them. What is the rationale behind levying such charges? What kind of banking is this? Whether levying of charges of this nature has the necessary approval of the Regulatory body, namely RBI. Will the bank or the RBI clarify the matter for the benefit of the general public?

POWAI LAND FRAUD

The well-known Hirnandani group’s fraudulent way of wealth creation was exposed by Mumbai Mirror in its lead article on 23-08-09. Having obtained the land from the poor farmers/government at concessional rate under the Powai Area Development Scheme, the group instead of building the affordable housing complex as agreed built sprawling high end housing complex in violation of agreed terms. The MMRDA which probed the irregularities had imposed a penalty of Rs 1993 crores, taking into the prevailing market price. The Maharastra government instead of recovering the penalty in full, has taken a decision to reduce the penalty on builder from the above amount to Rs 218 crore thus helping the builder to save Rs 1777 crore. The state government needs to explain to the public why so much concession was accorded to the wealthiest of the wealthiest. The government should collect the penalty in full and utilize the amount for various welfare programmes particularly those who lost the land in and around erstwhile Powai village.