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.