Dena Bank Q1 net down 21% at Rs 189 cr

Jul 27, 2013, 04.04 PM IST

As of June 30, 2013, Dena Bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 2.70 percent of gross advances as against 1.80 percent in the same quarter of the previous fiscal.

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Dena Bank Q1 net down 21% at Rs 189 cr

As of June 30, 2013, Dena Bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 2.70 percent of gross advances as against 1.80 percent in the same quarter of the previous fiscal.

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Dena Bank Q1 net down 21% at Rs 189 cr

As of June 30, 2013, Dena Bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 2.70 percent of gross advances as against 1.80 percent in the same quarter of the previous fiscal.

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Corporation Bank Q1 profit up marginally by 2% at Rs 378 cr

Jul 27, 2013, 03.56 PM IST

The total income of the bank rose to Rs 4,852.6 crore in the April-June quarter from Rs 3,978.2 crore in the same period of last year.

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Corporation Bank Q1 profit up marginally by 2% at Rs 378 cr

The total income of the bank rose to Rs 4,852.6 crore in the April-June quarter from Rs 3,978.2 crore in the same period of last year.

Like this story, share it with millions of investors on M3

Corporation Bank Q1 profit up marginally by 2% at Rs 378 cr

The total income of the bank rose to Rs 4,852.6 crore in the April-June quarter from Rs 3,978.2 crore in the same period of last year.

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State-owned Corporation Bank today reported 2 percent rise in net profit at Rs 377.9 crore for the first quarter ended June, 2013.

The bank had earned net profit of Rs 370.2 crore in the April-June quarter of 2012-13, Corporation Bank informed BSE.

Also Read: HUL Q1 net beats street; shares slip on slower sales growth

The total income of the bank rose to Rs 4,852.6 crore in the April-June quarter from Rs 3,978.2 crore in the same period of last year. As of June 30, 2013, the bank's gross non-performing assets (NPAs) rose to 2.37 percent of gross advances as against 1.71 percent in the same quarter of the previous fiscal.

It's net non-performing assets also rose to 1.65 percent from 1.20 percent. The bank's Capital Adequacy Ratio (CAR) as of June 30 stood at 12.10 percent.

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The latest earning numbers FIRST on CNBC-TV18

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Gold surges to 5-week high on brisk buying, tight supply

Gold today surged to five week high by gaining Rs 280 to Rs 28,425 per ten grams in the national capital on increased buying by stockists and jewellers against restricted supply.

After gaining Rs 325 in the previous session, the fresh upsurge pushed up gold prices to a level last seen on June 19, in the face of tight stocks position ever since the RBI imposed fresh import norms.

Also read: Bringing stability to rupee key; bond yields to fall: Rajan

Under a notification, banks and authorised agencies have been directed to ensure that at least 20 percent of imported gold is made available for exports.

However, silver lacked necessary buying support and declined by Rs 120 to Rs 41,230 per kg. In the national capital, gold of 99.9 and 99.5 percent purity advanced by Rs 280 each to Rs 28,425 and Rs 28,225 per ten grams, respectively. Sovereign remained steady at Rs 24,400 per piece of eight gram.

On the other hand, silver ready declined by Rs 120 to Rs 41,230 per kg and weekly-based delivery by Rs 270 to Rs 41,010 per kg, respectively. The white metal had gained Rs 125 in the previous session.

Silver coins continued to be asked around previous level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces in limited deals.

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'I started Hidesign with a cobbler and Rs 25,000 fund'

He's a hippie at heart; he grew up in Sri Aurobindo Ashram, Pondicherry; and developed an aversion to all things painted, patented and synthetic. This was the driving force that led Dilip Kapur to create Hidesign in 1978.
From its artisan roots of just one cobbler and Rs 25,000 to a Rs 150-crore company with 3,500 people, 84 exclusive stores and a distribution network in 23 countries, Hidesign has stayed focused on innovation, natural tanning processes and craftsmanship. Kapur also owns two boutique hotels both in Pondicherry.
In 2007, the seasoned entrepreneur set down another milestone - he began collaborating with Louis Vuitton, which partnered with Hidesign in India. Two years later, Holii was born, a joint-venture between Hidesign and Future Group.
Nivedita Jayaram Pawar caught up with the founder of the high-end 'affordable luxury' brand owner during Kapur's recent visit to Mumbai.

Let's rewind a little. Where did you grow up?

I was born in Delhi but raised in Aurobindo Ashram, where I studied till the age of 15 in the ashram school. I loved the liberal, unregimented atmosphere there.

You continued your studies in the Unites States...

Yes. I wanted to see the world and enrolled to study at the Phillips Academy, Andover. I had $8 in my pocket when I left. This was in 1964. After that, I went to Princeton for a PhD in Liberal Arts.

How were you introduced to leather?

After working in America for nine months, I returned to India to work in a leather goods company. This is where I fell in love with leather and the smell of it.

Go on... 

I started designing bags as a hobby. I gifted the first three to my mom, my sister and my aunt. But my first sale was to a friend who bought a bag I designed for Rs 300. It was a princely sum at the time and I was shocked that someone would actually pay that much money for something I had created! Later, I started Hidesign with a cobbler and Rs 25,000 as seed capital.

What do you love most about your job?

What job? If I had a job and a boss, I would be a lousy employee. What I love most is that I don't consider what I do as a job.

Great. But is there something you could do without?

Extra-clever people. One wonders if they have any commitment and passion.

Tell us something about your first job. What was your remuneration and what did you learn from it?

I started at the bottom of the totem pole as a dishwasher-cum-waiter. It left me with a sense that one should do anything, regardless of how 'dirty' or 'low class' one might think it is. I still try to inculcate these habits in Hidesign. It is very important for a person to be free of the taboos of what's appropriate and what is not. Jobs don't necessarily teach you a specific skill; they teach you how to relate to your life, and they can spark something you never imagined was possible. I think I was earning $150 US plus food and a great apartment back then.

You have achieved so much. What is your motivation?

Something new, something creative, something beautiful.

Who is that someone you look up to? What have you learnt from that person?

Steve Jobs and Nelson Mandela.
From Jobs: How a hippie freak can become a great leader.
From Mandela: Largeness of heart.

When not craving beautiful bags, what do you do?
Walking my dogs.

How do you keep abreast of what's happening in your field?

By travelling and looking at every woman, only to see what hot bag she's carrying!

What is your morning ritual?

I exercise for 40 minutes, followed by 10 minutes of meditation.

What are you currently reading?

Lost Memory of Skin by Russell Banks and Imagine: How Creativity Works by Jonah Lehrer.

What is your favourite movie?

The English Patient, The Apu Trilogy and so many more.

When was the last time you took a vacation? Where and what was it like?

The last one was at Beach No 7, Havelock in the Andamans. I loved the sheer laziness of it all. The most memorable one was in the Amazon in Brazil.

If not a businessman?

A miserable professor.

What do you admire most in people?

Passion.

Where do you see yourself 10 years from now?

Same place, a little older, a little slower, a little more at peace.

If you could change one thing about your business, what would it be?

Reorganise it so that I could indulge in only creative work.

Lastly, what's that one thing we don't know about you?

Like I'm going to tell you that!
 
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Goa: 19 kids fall sick after eating mid-day meal at school

At least 19 students of a government-aided high school at Pernem taluka in Goa fell ill after eating mid-day meal today, officials said.

While a girl was hospitalised at a primary health centre in Tuem, nearly 40 kms from here, rest of the students of the Kamleshwar High School were discharged after initial treatment, they said.

Also Read: India ignored warnings on problems in mid-day meal scheme

The girl suffered bouts of vomiting after consuming the meal while others felt uneasy, the officials said. Though the girl is reported to be out of danger she is under observation. "It is yet to be ascertained whether the incident happened due to food poisoning," an official said. The affected kids are students from class V to class VII, he said. Initial reports said that a spider was found in the meal but the official dismissed them as a "rumour".

The job of serving the mid-day meal was assigned to an NGO, Brahmanandacharya Self Help Group. The concerned NGO has also been serving the meal to 13 primary schools and eight secondary schools, officials said.

Earlier this week, around 22 students from St Joseph High School were referred to the hospital due to suspected food poisoning after eating the mid day meal.

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How to get funding for an agribusiness venture

By Pranbihanga Borpuzari

The business of agriculture has survived almost as long as the civilization of humanity. A business in this sector has the inherent advantage of always having a customer. But, in order to grow and take your business to a level that benefits you and your producer, if you are not one, external funding is important.

- Experience counts

Get some years behind your company. While it's true for every other sector, the years are more crucial for agribusiness. Angel investment in the sector does exist but is far less compared to others‚ such as the IT sector.

Investors prefer to come in at the pre-growth or growth stage and they generally want you to be in the business for a few years. This would mean about three years of operation and after having seen some track record of growth.

- Get the financials right

An agribusiness company generally tends to be a proprietorship. In order to raise funds, a company has to change this status to a private limited company. Investors also like a certain degree of accounting and finance practices to be followed in the company so as to ensure transparency.

Before seeking funding, it would be worthwhile to clean up your accounting registers to enthuse confidence amongst the investing community. Investors would also want to see clear management lines and before you embark on that funding round, ensure that you have a good business plan and an even better management quality with a reliable second level of management.

- Figure your sources

It is very important to know which source works the best for you and how it would impact  your company. Your source can be a mere loan from a bank to take care of the monetary needs or it can be an equity sale to a VC or a PE.

A very good source of fund which comes with minimum strings attached, is funding from friends and family. However, the needs of an agribusiness  firm are intensive and this route may not be ideal. If the company is in its early days and you are looking to raise a small amount of funding, angel investors would be a good bet. For larger sums and greater equity dilution, a PE or a VC round may be more suitable.

Some funds that invest in agribusiness are Omnivore Capital, Standard Chartered Private Equity, TVS Capital and International Finance Corp.‚ while Mahindra and Mahindra Financial Services, Jain NBFC and Magma Fincorp Ltd.‚ are some NBFCs that invest in companies.

- Know the right people

Getting funding is not merely about getting a pile of cash to work with. It is also about the association that one would start with the investors. It is always important to get like-minded people on board with knowhow of the sector. Agribusiness is very different from sectors like IT. Most agribusiness ventures are capital-intensive, asset-intensive and cyclical in nature. An investor who does not understand such trends would make your job only tougher.

- Increase your value

Money will come into a company only based on its value. Whether you raise funding through equity, debt or a combination of both, the extent of money coming in will be dependent on the value or the worth of your venture. Before one decides to raise money through funding, it is very important for a firm to increase its significance.

The best way to do it is to ensure a consistent cash flow and ultimately boost profits. If profits are hard to come by in the initial stages, optimal cash must be generated to maintain day-to-day operations. A company should also look to increase sales quickly. Investors like firms that are going north and good sales numbers mean good returns for them.

- Plan for ups and downs

Agribusiness is a highly regulated sector not only within the country‚ but throughout the world. It is very important to understand that there are a lot of internal regulations that exist in the country and a lot of regulations change periodically. These would be export, import policies, WTO rules and regulations amongst others.

It is important that your business plan should be robust in terms of what you will do in the next five years. Factor in all the underlying assumptions and  risks. Investors like companies that are cognizant of all that is happening around them.

- Will to carry on

Agribusiness takes time before it starts showing results. It is a very lucrative sector, one that can withstand economic downturns, but is also dependent on a lot of permutations and combinations. In a country like India, there are substantial challenges when it comes to the sector, and the entrepreneur must have the drive and energy to carry on.

The entrepreneur also needs to be patient and demonstrate to the investor that he has what it takes to withstand the setbacks that this sector throws up.
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India still second fastest growing economy: Chidambaram

Noting that India continued to be the second fastest growing economy in the world after China, Finance Minister P Chidambaram today said people should not be worried about the current slow down and expressed hope of achieving six per cent growth this fiscal.    

"People should remember India continues to be the second fastest growing economy after China. Even China's growth which was at 10 per cent has come down to seven per cent now, while our growth has slid to five per cent from nine per cent," he said at a bank function here.

Also read: Govt to focus on projects where DBT is doable: Chidambaram
   
"Economic slowdown is there in all the countries. When there is slow growth rate in the world, India cannot remain unaffected," he said inaugurating the 2110th branch of the Indian Bank in this small town in his Sivaganga Lok Sabha constituency.
   
Chidambaram said even European countries had been affected by the economic slow down.    

Many countries including Mexico Brazil were behind India, he said.
   
Expressing hope that the country's growth would touch six per cent this year, he said "People should be confident..self confident and take bank loan to invest in farm sector, small industries, housing etc. You should hope for bright tomorrow, and not worry about the slow down."
   
On the petroleum products prices, he said it had gone up due to the price of crude oil touching 108 US Dollars per barrel, adding the price of petrol and diesel would show a declining trend only if crude came below USD 100 per barrel.
   
India imports over 70 per cent of its oil demand and efforts are on to explore crude and gas in the country. "Sometimes they succeed in hitting crude and sometimes they do not, and it requires a lot investments..thousands of crores...
   
"We have to reduce the import of crude to fifty per cent for reducing the petrol and diesel prices," he said.    

Chidambaram also said plans were on to open 8,000 new bank branches this year. This would create 50,000 jobs and would also help the economy to grow.
   
He suggested women should form more Self-help groups and obtain loans boldly to start new ventures.   

Earlier, Indian Bank Chairman and Managing Director T M Bhasin welcomed the Minister and other participants.

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Lanco in talks to restructure $1.5 bn debt - paper

Infrastructure builder Lanco Infratech has started discussion with its bankers to restructure debt worth Rs 90 billion as a weak economy takes a toll, the Business Standard newspaper reported on Saturday.

Also read: Government mulls plan to start coal banking system

If the process is approved by lenders, Lanco would be the second debt-laden company to go for major loan restructuring in the last year after lenders to wind turbine maker Suzlon Energy in November agreed to restructure about 110 billion rupees of its debt.

Lanco, which produces power and builds roads, and residential and commercial buildings in India, is looking to restructure a part of its debt after its attempts to sell some assets failed, the newspaper reported, citing unidentified bankers.

The company, which acquired Australia's Griffin Coal Mining Co for about $760 million in 2011, is exploring the option, a Lanco spokesman told Reuters, adding the possible process would not impact any of its units including the Australian business.

He declined to give details.

Lanco, which had total debt of 336 billion rupees, as of the end of March, posted losses in the last two financial years, as the weak Indian economy, growing at its slowest in a decade, hit infrastructure investment.

Banks bring cases to the so-called corporate debt restructuring process to negotiate relaxed repayment terms with struggling borrowers.

"We told the company that something needed to be done about the huge debt, as it had exhausted all its options," a senior state-run bank official was quoted in the Business Standard report as saying about the possible Lanco restructuring.

Project bottlenecks, largely because of problems in acquiring land and high funding costs, have also sapped investment in the infrastructure industry in Asia's third-largest economy.

Reflecting the poor economic climate, the earnings outlook of many mid-sized and debt-laden Indian infrastructure builders such as Jaiprakash Associates Ltd and GMR Infrastructure Ltd has deteriorated.

Many lenders have expressed worry about loans to the power, commercial real estate, construction, aviation, textile and metals sectors, which are among those hardest-hit by slowing growth and sluggish policymaking that has deterred investment.

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Restructure cheaper; no worry on fall in cash level: Ambuja

Forty-eight hours after Ambuja Cements announced restructuring of ownership by parent Holcim , the airwaves have been flooded with reactions and concerns from minority shareholders, investors, and analysts.

Ambuja Cements managing director, Onne Van Der Weijde, in an interview to CNBC-TV18, explains that a restructuring of operations is more cost-effective and offers more synergies than a full merger.

Weijde adds that deployment of cash does not deplete Ambuja's cash reserves significantly and would still allow for acquistions and expansion.

Below is the edited transcript of the interview on CNBC-TV18

Q: Let me start by asking you, if this was the structure that you had originally envisaged when you entered India and you acquired control over a period of time in two leading cement companies — ACC and Ambuja — was subsidiarisation the first step towards full consolidation?

A: No I don't think so. That was not part of our plans at that time. It was developed over time. But first I would like to explain what we are doing now. We want to create more value by going after synergies.

We have been working with Ambuja and I was previously the CFO of ACC . We have been working with both companies to achieve synergies, cost reductions, implement policies and set up governance structures. A lot has been already implemented. Earnings at Ambuja and ACC are under pressure due to impact on  the topline from poor growth in volumes and prices. So, we started to focus on measures to improve the bottomline.

Q: Can you explain why you did not find it appropriate to carry out a full merger at this point in time?

A: We have targeted two specific areas of synergies and I don't think a full merger is needed to achieve that.

Q: So is a merger still an option?

A: It is still an option that we will exercise after synergies in a majority of areas are achieved. Though a full merger may offer synergies, there is also a significant element of cost involved.

Q: Won't implementing synergies also take up a lot of time? In the newly-formed India management committee structure, the management of both ACC and Ambuja will have to work together along with representatives from parent Holcim to arrive at synergies. So why not conduct the merger and then arrive at synergies?

A: The synergies would result in benefits worth Rs 900 crore which is not a small amount.

Q: Wouldn't a merger offer increased benefits?

A: Yes, but a merger might turn out to be a distraction too. It is only after considerable evaluation of the options available that we decided to enable the synergies first.

I would also like to clarify the management structure you mentioned. There are completely two independent management teams and it is only in the targeted areas that the management of both companies will work together. And there will be no participation by representatives from Holcim.

Q: Did you get unanimous approval from the independent directors for this restructuring proposal?

A: Absolutely.

Q: And did your independent directors raise questions?

A: They raised a lot of questions and wanted a lot of explanations.

Q: Did any of your independent directors raise questions about the rationale for Ambuja Cements having to buyback 9.7 percent of its own equity owned by Holcim India?

A: They were some initial questions about whether it was necessary. But when I explained that it was basically a washout and was for historic reasons, they agreed. The shares that we are acquiring will be cancelled.

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Smart ways to deal with sudden lumpsum income

BankBazaar.com

Pavitra received Rs 3.5 lakh from the sale of a family property in her native place. She has a housing loan of Rs 30 Lakhs for which she is paying a monthly EMI of Rs 35,000. She has completed 2 years of the 7 years of the loan tenure. Pavitra is thinking about repaying a part of the loan with the entire inheritance amount, while her husband is of the opinion that they must invest a part of it for their children's education in mutual funds or equity shares.

Often, these complex decisions spring in front of us when confronted with a lump sum gain on one hand and a mortgage on the other. In case of a car loan or a personal loan, the choice is very clear - one must repay the loan as soon as possible as the interest is very high and the value of a loan investment only depreciates.

Besides, these loans do not have a long tenure as housing loans have.

Home Loan Outlook

In Pavitra's case, at a monthly interest of 10.5 percent, she ends up paying around Rs 3,15,000 annually only on the interest amount which works out to Rs 47,25,000 in 15 years, raising the cost of the house by over 50 percent.

If she uses her inheritance money to repay the loan, the number of instalments she has to pay will be reduced which implies that the total amount to be repaid will be reduced since the duration of the loan will come down from the remaining 5 years to just under 4 years

Comparative Analysis of Actual Savings and Growth of Corpus

How much benefit you accrue from investing on an alternate source depends on the type of investment you are making. In Pavitra's case, if instead of repaying the home loan, she would have invested the amount in purchasing a Blue Chip Fund or a child plan for her daughter's education, the returns cannot be forecasted.

However, if the blue chip fund returns after 3 years' investment were to give her a return of Rs 8 Lakhs then she would be able to pay off a bigger chunk of her debt and saved 2 years' instalments instead of 1 year.

Another scenario is where a person might also have a personal or a car loan. In such a case, it is best to pre-pay that loan first as the interest rate is higher in the shorter term.

A Case for Prepayment

The greatest advantage of pre-payment of a loan is that it significantly reduces the interest cost which will bring down the purchase price of the house by a large amount. So, even if you are considering reselling the property to purchase a bigger property in the future, you will be able to recover the cost faster and make better profits.

However, you must understand that you have already paid the loan processing charges for the entire tenure; so, if you are earning better returns elsewhere, then you can consider it so that you can utilise the returns to pay off a bigger portion of the loan.

Tax Rebate

Home loans attract a tax rebate under the Income Tax Act, so often individuals prefer to continue their loan for the entire duration. However, if you are paying an EMI of Rs 35,000 and your tax saving is Rs 1000; it does not appear to be a very big saving.

Besides, there are other tax saving avenues which are more beneficial. You could even invest in another property as real estate delivers the highest returns among all investment classes.

What are the Investment Avenues in Such Cases?

If you do not want to prepay your loan with the extra amount you have, then there are the following investment options:

• Equity: If you have a high risk appetite, then investing in equity can generate more returns than you would have saved from pre-paying the home loan.

• Real Estate: You can invest in another property. It would mean an additional loan, but if you can earn a rental income, then the loan will get repaid partly by the rental returns. Besides, you can sell one property to leverage the loan repayment for the other property.

• Provident Fund: PPF gives you a tax benefit for the entire Rs 1 Lakh you deposit in the account and attracts an interest of around 8 percent. You must ensure that you complete the entire deposit amount for the year before paying off the debt. This will also set up a savings corpus for the future.

You have to pay the EMI on your housing loan till it is completely repaid. The EMI and the interest rate amount also remain constant. On the other hand, the return on investment from equities fluctuates and from secured bank deposits, the interest rate is not as high as it is on the loan.

If you are nearing retirement, it is most likely you are close to the final installment of your home loan. If you repay your home loan earlier, you can concentrate on savings and investment for your post-retirement years

For those who are younger and still have a few years, do not compromise on your other financial responsibilities such as insurance premiums, child plans, savings corpus to pay off the home loan.

   
 

BankBazaar.com   is an online marketplace where you can instantly get the lowest loan rates , compare and apply online for your personal loan , home loan ,   car loan   and   credit card   from India's leading banks and NBFCs.

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TV18 Broadcast to declare Q1 results on July 29

Jul 20, 2013, 05.40 PM IST

TV18 Broadcast Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ended June 30, 2013 (Q1). Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.

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TV18 Broadcast to declare Q1 results on July 29

TV18 Broadcast Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ended June 30, 2013 (Q1). Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.

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TV18 Broadcast to declare Q1 results on July 29

TV18 Broadcast Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ended June 30, 2013 (Q1). Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.

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TV18 Broadcast Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ended June 30, 2013 (Q1).Source : BSE

Read all announcements in TV18 Broadcast

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18

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Reliance Capital to announce Q1 results on July 29

Jul 20, 2013, 05.40 PM IST

Reliance Capital Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve unaudited financial results for the quarter ended June 30, 2013 (Q1).

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Reliance Capital to announce Q1 results on July 29

Reliance Capital Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve unaudited financial results for the quarter ended June 30, 2013 (Q1).

Like this story, share it with millions of investors on M3

Reliance Capital to announce Q1 results on July 29

Reliance Capital Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve unaudited financial results for the quarter ended June 30, 2013 (Q1).

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Reliance Capital Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 29, 2013, inter alia, to consider and approve unaudited financial results for the quarter ended June 30, 2013 (Q1).Source : BSE

Read all announcements in Rel Capital

Action in Reliance Capital

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18

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Bombay Rayon Fashions approves corporate debt restructuring

Bombay Rayon Fashions approves corporate debt restructuring

Bombay Rayon Fashions Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 19, 2013, has considered/ approved the proposal of Corporate Debt Restructuring (CDR).

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From tin shed to corporate chic, Viplab chisels an SME

Sonali Chowdhury

Many would kill for a cushy job in a comfortable leather-back swivel chair. Not Saurabh Rohtagi. A qualified company secretary with a secure job, Rohtagi would often swivel in his leather-back chair in his office and dream about the future.

It was Rohtagi's belief that a comfortable workplace tended to increase productivity and raised the brand value of the company too. To Rohtagi's mind, this meant only one thing companies placed a premium on good office furniture.

Many years later, Rohtagi's Viplab Industries is dishing out chic and comfort in the form of office furniture, cubicles and wall panelling, to companies that include Idea Cellular, Hitachi, Geetanjali and Vaibhav Gems, among others.

Our self-made entrepreneur, now in his 30s, set up his company in Jaipur in 2008 and later converted it into a partnership along with his wife Tanu and brother Abhishek. While Saurabh looks after the finance, marketing and promotions of the company, Abhishek and Tanu oversee manufacturing, expansion and planning.

Dark Days

A turnover of 43 lakh (2012-13) may seem modest for other SMEs but not to Rohtagi, whose humble beginnings would have deterred many from taking the risk. When Rohtagi's father lost his job to failing eyesight, his mother, a teacher, began to support the family.

Life was tough but Rohtagi, still in school then, cultivated a positive outlook. After he graduated in 2003, he became a qualified company secretary and held steady jobs for five years in the banking and insurance sectors. That's when he realised there was a permanent and large requirement for office furniture. He did his homework and finally took the plunge.

"Business gave me the freedom to take my own decisions, take risks and plan my future. I hoped it would bring me recognition and good money some day. His brother Abhishek laughs, "Saurabh is the kind of person who doesn't sleep at night till an order is complete and delivered to customers. Once it is delivered, he starts looking for more orders!"

Trader To Manufacturer

Rohtagi started as a trader and bought furniture from Delhi and Jaipur, which he supplied to retailers and dealers locally. "It was very tough getting retailers. We could not even take goods on credit as we did not have a solid business background or collateral, and had to pay cash up-front," shares Rohtagi.

He realised the solution was to set up a manufacturing unit. But how was he to do that with just Rs 25,000 in the bank? "We started visiting dealers and wholesalers, and gradually earned some goodwill. Gradually, we started getting goods on credit. Eventually, we were able to invest Rs 2.5 lakh in machines, equipment and setting up the unit.

Initially, Abhishek kept his full-time job to support the venture and the brothers scouted for a suitable workshop. "We found someone who was willing to rent us a tin shed with an electricity connection for Rs 5,000 a month," recalls Rohtagi. "We bought second-hand machines because we could not apply for loans to invest in new ones."

End Of The Tunnel

The next challenge was hiring skilled workers. "We didn't have enough equipment so we could not turn around our products quickly. We thus incurred losses amounting to Rs 12,000 and had to sell the goods at a discount to recover some of the money to pay for the raw materials.

With sheer grit, Rohtagi made it through those dark times. It was therefore a proud day when he rolled out his first product suite. "One of our earliest clients was Geetanjali, which was a big boost for us. The order was valued at Rs 5-6 lakh and this helped us take off," says Rohtagi who commands a staff of 26 today.

As the business gathered momentum, Viplab Industries started getting orders from government firms and large companies and Rohtagi worked towards getting a Crisil rating and ISO certification to put Viplab Industries at par with other players.

Even A Home Loan Is Easier To Get!

"SMEs like us find it very difficult to secure loans. The government has left it to banks to offer loans but the money doesn't trickle down to us. And there's tons of paperwork and if it gets stuck, the whole process stalls," Rohtagi sighs.

He says Viplab Industries had applied for a bank loan of Rs 12 lakh, which they were eligible for but received only Rs 5 lakh. "How were we supposed to pay for raw material, working capital, fees for tenders and repay our creditors? The banks we had approached asked us to complete orders worth Rs 10 lakh before applying to them! It is easier to get a home loan than a business loan!"

Only The Tough Survive

But tough times have made the Rohtagi brothers only tougher and Saurabh remarks, "We aim to cross a turnover of Rs1 crore by next year and register our company as a private limited firm."

That's no empty boast for a youngster who went from a turnover of Rs 5 lakh to Rs 43 lakh in just three years.

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30-odd years and still innovating; that’s entrepreneurship

Sonali Chowdhury

K J Joseph has lived an interesting life. While growing up, this 70-year-old engineer from Kerala had the world at his feet. His father owned a cinema hall, a movie distribution company and rubber plantations in South India. But Joseph was determined to cut his own path instead of joining the family business.

The world of engineering fascinated him and he worked with many big-ticket companies, including the General Reserve Engineering Force, whose engineers work with the Boarder Roads Organisation.

His finest hour, however, came in 1974. A good 13 years after he received his engineering diploma, Joseph launched Thejo Engineering Ltd, an engineering solutions provider focusing on conveyor belt systems used in core-sector industries like mining, power, steel, cement, ports and fertilisers.

But before he floated his firm, Joseph required two things a partner and a great idea. Bursting with enthusiasm, he teamed up with an old friend and school mate, Thomas John, who he had also worked with in the past.

That One Great Idea

While scouting for an idea, Joseph's experience with foundry mechanisation drew his attention to conveyer belt systems and the two young lads decided to make this the focus of their start-up. They finally zeroed in on conveyor services which included belt jointing and pulley lagging.

At the time, there were only two processes available to join conveyer belts clipping and hot vulcanisation. But how could Thejo do one better? "We came across a material for cold vulcanisation. It was a German component and very few companies were aware of it in India," says Joseph.

The biggest advantage of this technology was that it saved time. With this new process along with the cold lagging process developed by Thejo, companies could get their conveyor belts joined in one single shift as opposed to the two months it took with the older technology.

"Due to this, major production facilities like the Bokaro and Bhillai steel plants were able to enhance their production by as much as 25 per cent," explains Joseph. Not surprisingly, Thejo built a solid clientele in the service industry. With single-minded zeal, the two co-founders and friends decided not to harvest their profits and, instead, ploughed them back into their business.

From Services to Manufacturing

After a few years, the entrepreneur in Joseph stirred again. So, in 1986, Thejo Engineering converted into a private limited company. That was only the first of many plans Joseph had up his sleeve. When Thejo found it difficult to procure quality rubber sheets and adhesive for its cold vulcanisation technology, Joseph decided to shift the company's focus from servicing to manufacturing.

Raising funds to make the transition was not difficult as Thejo had an impressive client list, most of whom were government establishments.

The World Is His Oyster

The big moment came in 1989, when Joseph inaugurated his first manufacturing unit. But the going wasn't easy. Thejo had no experience in manufacturing and there were no benchmarks for this technology. So rejections and financial losses were inevitable. "But it was all in the game," smiles Joseph.

If they were to succeed in their new avatar, they needed to pull a rabbit out of the hat. Thus the co-founders put in even more time and money and perfected their technology. "Our persistence paid off and by 1994, we enjoyed almost 80 per cent of market share," reveals Joseph. "Today, we have four manufacturing units in Ponneri, Tamil Nadu, where we produce vulcanising machines, lining operations, adhesives, mouldings and accessories for conveyer systems," he adds.

Going Global

Just when most businessmen would sit back and relish their journey, Joseph grew restless again. The year was 2007 and the insatiable businessman, who was 64 years old, decided it was time to expand overseas. Thejo drew on its contacts and established an international presence through partnerships and distribution networks across Australia, Saudi Arabia, the US, Germany, Chile, Brazil and Ghana.

A year later, in 2008, the company set another milestone when it became a public limited company. It also became the first SME to enter the capital market with a public issue aggregating Rs 21 crore in September 2012.

Key Learnings

Age has taken a toll and Joseph is largely confined to Chennai. But he credits his old friend John for more than making up for his limitations. "We have only one interest and that is the company's interest. Whenever we have had differences of opinion, we analysed them from company's perspective and sacrificed our personal interests for the company's welfare" reveals Joseph.

Both friends also complement each other in their strengths and weaknesses and have great respect for each other. "Joseph is technically sound and where I am lacking, he used to advise me and vice-versa," says John, who is now managing director of the company.

Back in the 1990s, when business was booming, the co-founders saw the wisdom in bringing in another core team member. They roped in V A George, a mutual friend, who brought with him technical and financial experience. "From my experience in other companies we have developed a family-like work culture, where we treat our employees as family and maintain that work culture even today. We had never faced any labour issues in 40 years," adds Joseph. 

He has one last bit of advice. "Be extra-cautious before making any new forays and always look before you leap. We took 40 years to establish our business and have grown steadily. I have seen some companies perishing like a pack of cards. So don't be too adventurous."

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Having trouble in filing returns? Here's a checklist

Arnav Pandya

The time for filing of income tax returns is nearing and individuals need to be careful about the various details related to this area. There has to be the correct decisions at this stage so that the entire process is completed smoothly.

Also read: Here's how to avail tax benefits on house rent allowance

It is essential that every individual pays attention to a few factors that are involved in the return filing work so that the end result is proper. Here are a few things that need to be paid attention to in the entire work.

Return Form

The entire work starts with the selection of the return form by the individual. This by itself is a slightly complicated process because the return form selection depends upon the nature of the income earned by the individual.

Thus there could be a situation wherein the return form would change between two years because the nature of the income has changed. Getting and filling in the right return is absolutely necessary otherwise the return would not be considered valid. This first step can prove to be an important part of the process so adequate attention is required here.

Permanent Account Number

The entire working and dealing with the income tax department for the individual for all their tax matter depends only upon a single factor. This is the Permanent Account Number (PAN) and every linkage of the tax details has to be with this specific number.

Thus when you go and file your tax return, the PAN has to be correctly mentioned so that the details therein can be verified.  Even before you get to this stage there is the use of PAN as your tax deducted at source will be linked to this number. It is the PAN that is the single factor that keeps various details together enabling the tax authorities to complete their assessment work.

Bank account

Every income tax return now also requires the bank account for the purpose of ensuring that any payment that is to be made to the individual would directly go into this account.

It is not just the bank account that is required in the tax return because the ISFC code, MICR code and branch and branch address ensures that the details are given properly and that this is of the right person.

The bank details assumes the highest importance in case of refunds as the amount need not be given in the form of a cheque that can take a lot of time to come but can be directly credited to the account.

Correct figures

The next part comes with the entry of the right numbers in the income tax return. All the details related to the income have to be seen carefully and then entered into the income tax return.

There are consequences of getting the figures wrong as the entire return would not be considered proper and there would have to be a revised return filed with the rectified figures.

The better alternative would be to take adequate care right at the time of entering and dealing with the calculations at the initial stage so that any mistakes are eliminated right here.

Tax payments

One area that has to be at the forefront of all activities is the amount and manner of the various tax payments that have been made over the year.

There would be several means through which this might have been made and this would include tax deducted at source, advance tax and at the time of filing the income tax return even self assessment tax.

All these need to be considered and seen as to whether they have been made properly so that the right amount of credit is reflected in the account of the tax payer so that there are no problems at the time of assessment.

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Texmaco Rail to make open offer for 49.52 lakh shares of Kalindee

Jul 20, 2013, 06.06 PM IST

Texmaco Rail: Open offer for acquisition of up to 49,52,280 shares from public shareholders of Kalindee Rail Nirman (Target Company) by Texmaco Rail & Engineering (Acquirer); the offer price of Rs 68 payable per share

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Texmaco Rail to make open offer for 49.52 lakh shares of Kalindee

Texmaco Rail: Open offer for acquisition of up to 49,52,280 shares from public shareholders of Kalindee Rail Nirman (Target Company) by Texmaco Rail & Engineering (Acquirer); the offer price of Rs 68 payable per share

Like this story, share it with millions of investors on M3

Texmaco Rail to make open offer for 49.52 lakh shares of Kalindee

Texmaco Rail: Open offer for acquisition of up to 49,52,280 shares from public shareholders of Kalindee Rail Nirman (Target Company) by Texmaco Rail & Engineering (Acquirer); the offer price of Rs 68 payable per share

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ICICI Securities Ltd ("Manager to the Open Offer") has submitted to BSE a Copy of Public Announcement ("PA") regarding Open Offer ("Offer") for acquisition of up to 49,52,280 (forty nine lakh, fifty two thousand, two hundred and eighty) fully paid-up equity shares of face value of Rs. 10 (Rupees Ten) each ("Equity Shares") from the public shareholders of Kalindee Rail Nirman (Engineers) Ltd ("Target Company") by Texmaco Rail & Engineering Limited ("Acquirer"), pursuant to and in compliance with, among others, Regulations 3(1), 4 and 20 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended (the "SEBI (SAST) Regulations, 2011").Price / consideration: The Offer Price of Rs. 68 (Rupees Sixty Eight) payable per Equity Share is calculated in accordance with Regulation 8(2) of the SEBI (SAST) Regulations, 2011 ("Offer Price").Type of offer: The Offer is being made by the Acquirer pursuant to and in compliance with Regulations 3(1) and 4 of the SEBI (SAST) Regulations, 2011 and is also a competing offer under Regulation 20 of the SEBI (SAST) Regulations, 2011.Source : BSE

Read all announcements in Texmaco Rail

To read the full report click here

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Kalindee Rail: Open offer for 49.52 lakh shares by Texmaco Rail

ICICI Securities Ltd ("Manager to the Open Offer") has submitted to BSE a Copy of Public Announcement ("PA") regarding Open Offer ("Offer") for acquisition of up to 49,52,280 (forty nine lakh, fifty two thousand, two hundred and eighty) fully paid-up equity shares of face value of Rs. 10 (Rupees Ten) each ("Equity Shares") from the public shareholders of Kalindee Rail Nirman (Engineers) Ltd ("Target Company") by Texmaco Rail & Engineering Limited ("Acquirer"), pursuant to and in compliance with, among others, Regulations 3(1), 4 and 20 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended (the "SEBI (SAST) Regulations, 2011").Price / consideration: The Offer Price of Rs. 68 (Rupees Sixty Eight) payable per Equity Share is calculated in accordance with Regulation 8(2) of the SEBI (SAST) Regulations, 2011 ("Offer Price").Type of offer: The Offer is being made by the Acquirer pursuant to and in compliance with Regulations 3(1) and 4 of the SEBI (SAST) Regulations, 2011 and is also a competing offer under Regulation 20 of the SEBI (SAST) Regulations, 2011.Source : BSE

Read all announcements in Kalindee Rail

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What Food Security Bill means for India's subsidy burden

By Dhanraj Bhagat

The National Food Security Bill 2013 was recently passed as an ordinance by the Union Cabinet. The bill aims to provide 5 Kg of food grains per person per month at subsidised prices from State Governments under the targeted public distribution system.

The eligible households will be entitled to food grains at a subsidised price not exceeding Rs 3 per Kg for rice; Rs 2 per Kg for wheat and Re 1 per Kg for coarse grain.

Implications:

Welfare economics:

A huge percentage of the Indian population lives below the poverty line where getting one square meal a day is a challenge. The food security bill aims to satisfy this basic want and in that sense although it encourages welfare economics, the intention is noble. This is what would need to be weighed against other economic considerations.

Rising Subsidy burden:

To gain a perspective on the subsidy portion let us look at the per kg price. Government procurement price would be approximately Rs. 13.45 per Kg for rice and Rs. 12.85 per Kg for wheat. The subsidy portion works out to Rs. 10.45 per kg of rice and Rs. 10.85 per kg of wheat. When we take into account the total number of beneficiaries and the quantity of food grains that would be distributed, the burden on the exchequer is projected at a whopping Rs. 1.3 lakhs crores per year. The increase in subsidy burden will only add to the current fiscal account deficit woes.

Inflationary pressures:

Procurement by the government of such huge quantities of rice, wheat, and other grains would result in less quantity available in the open market, thereby pushing up food prices. This would be further aggravated in a year of low production which would necessitate procurement through imports, which in turn will again push prices up.

Public distribution system and leakages:

The current system of distribution is though the approximately 5 lakh fair price shops spread across the country. In addition there are logistics issue of picking up the food from the source, storage and onward transportation. Leakages on account of pilferage, rotting of grains and logistics inefficiencies account for nearly 40% to 50% of the total food stock. Should this trend continue, the incremental losses on account of additional procurement under the Bill is something we as a nation can ill afford.

Agriculture opportunity:

With additional demand the agriculture sector would receive a boost and this could lead to more investments in improving agriculture productivity and making it more competitive.

Infrastructure opportunity:

To overcome the inefficiencies in the distribution of grains, substantial investment would be required in creating infrastructure like warehousing and storage facilities, roads, improving rail connectivity etc. This could create a huge opportunity for the private sector which could turn out to be one of the catalysts for a renewed economy.

(The writer is Partner, Transaction Advisory Services, Grant Thornton India LLP)

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Stock market prediction for July 22-26: Astrostocktips

Technology sector will continue getting strong astrological support. Buy HCL Technologies, TCS, Tech Mahindra, Think soft, KPIT, eclerx, Infosys etc on dips, says Satish Gupta of astrostocktips.in.

By Satish Gupta of astrostocktips.in

Weekly planetary position: During the week, Moon will be transiting in Sagittarius, Capricorn & Acquires. Lord Saturn & Rahu in Libra. Sun in Cancer. Mercury, Jupiter & Mars in Gemini, Venus in Leo. Ketu in Aries. Pluto in Sagittarius. Neptune in Aquarius & Uranus in Pisces.

As predicted, last week volatility & deception was it at its highest level. Although, planet mercury's retrogration period is over but deception & volatility will continue next week also, so be very cautious in carrying over night positions in Nifty.

Following sectors will be getting astrological support:

Technology sector will continue getting strong astrological support. Buy HCL Technologies , TCS , Tech Mahindra , Thinksoft , KPIT , eClerx , Infosys etc on dips.

Leather sector will continue receiving astrological support. Buy Bata , Relaxo , Sree Leather etc on dips.

Pharma sector will also continue receiving strong astrological support. Buy Lupin , Dr Reddys , Biocon , Divis Lab , Strides Arcolab , Cipla , Sun Pharma etc on dips.

Telecom sector too will be getting astrological support. Buy Idea , Bharti , Tata Communications on decline

Paints sector will be receiving strong astrological support. Buy Asian Paints , Berger Paint , Shalimar Paint , Kansai Nerolac , Akzo Nobel etc on decline.

Liquor sector will continue getting strong astrological support. Accumulate McDowell on every decline.

Always be very cautious, when some main planets i.e. Rahu, Ketu, Jupiter & Lord Saturn are changing their houses. It may be that certain sectors which were continue sly getting support for long time may stop receiving support due to change in position by above planets & stocks of those sectors starts coming down, resulting in losses. This is common reason, why most people loss money.

One should trade only in the stocks of that sectors which are getting very strong astrologically support.

Sectors which get very strong astrological support are not normally affected by downfall in the market.

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Aadhaar enrollment aiming to combat subsidy leaks

The Indian economy is surrounded by all bad macros, including the industrial growth contraction and climbing consumer inflation. However, one long-term positive that maybe taking place is the Aadhaar enrolment and some steps on giving direct cash in place of subsidies.

Over just the last one month, nearly 10 lakh LPG consumers spread over 18 districts have already received Rs 41 crore in direct cash transfers and initial calculations show that this mechanism has already helped clean-up the LPG database. LPG consumption has fallen 3 percent year-on-year over the last six months, against a growth of 7-8 percent seen over the same period over the last 3 years.

Brokerage CLSA says that once rolled out pan India, more leakages in the system will be plugged and the government stands to save nearly USD 2 billion.

CLSA estimates that of the existing 140 million LPG connections, 25 million could turn out to be duplicates, or customers holding more than one connection at the same address. Of these, 6.3 million accounts have already been blocked thanks to the new Know Your Customer (KYC) norms.

The Aadhaar initiative will also help immensely, especially when it comes to governance at the state government level.

The Aadhaar scheme is seeing 15-20 million enrolments a month, and now covers 367 million Indians. Though seeding of Aadhaar cards with bank accounts continue to remain a challenge, state governments have begun using the platform to cut down on systemic inefficiencies in welfare programs and to improve overall services.

The Maharashtra government, for instance, plans to link Unique Identification Authority of India (UIDAI) data to property tax records, a move that will help eliminate ghost beneficiaries. Jharkhand, meanwhile, has mandated Aadhaar for registering land deals from January 2014.

It may be a while before Aadhaar based cards or direct cash can be transferred to food, kerosene and fertiliser beneficiaries. But with states insisting on Aadhaar numbers for land sales, for education and health benefits are we going to see more savings on ghost applicants and fraud claimants?

To know more on Aadhaar linked bank accounts and how it will benefit states, click here .

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India needs to do more to attract large FDI: US leaders

There is more concern among US businesses now about investing in India than was a few years ago though New Delhi was pursuing reforms, senior American leaders have said.

Also Read: India, US to brainstorm bilateral trade and eco ties

The US Trade Representatives (USTR), Mike Froman; and David Cote, chairman and CEO of Honeywell, said India needs to address the concerns of the American business on a host of policy issues so as to attract foreign direct investment in key areas like infrastructure sectors.

They said bilateral trade with India was way below that with China and called for addressing key issues.  At the same time, Froman and Cote - who are the US Co-Chairs of the India-US CEOs Forum - said the key Indian functionaries are committed to reforms.

They said those including Finance Minister P Chidambaram, Commerce and Industry Minister Anand Sharma and the Planning Commission Deputy Chairperson, Montek Singh Ahluwalia, are committed to the reforms, "though it is not happening much as they would like to".

"In our relationship with a number of different countries, the business community often has been the strongest component of close relationships.

"When the business community feels that things are not going well and begin to raise questions about the relationship, it has an impact on the bilateral relationship on the politics, which you seen by the reaction from the members of the Congress as well. So that is so important," Froman said.

In an exclusive joint interview to PTI at the Foggy Bottom headquarters of the State Department after the meeting of the India-US CEOs Forum, the two representing the voice of Obama Administration and Corporate America, said their issues with India are recoverable.

"It is recoverable.  That is why it is so important that we are requesting the Government of India to address these issues so that we can maintain the strong foundations for a good US India relationship," Froman said.

"There was a very frank discussion, where in body held back any issues," Froman said. "Over the last two years we have felt a cooling when it comes to US interests in investing in India.

"They are cooling, because we have seen a number of actions taken, each explainable in itself but cumulatively causing US investors to say aaaann, you know, I may be wanting to think up a little bit more," Cote said.

Responding to a question, Cote gave a sense that US companies are unlikely to be forthcoming in investing in India much unless their concerns are addressed.

"There is more concern now about investing in India than was a few years ago. This is all very recoverable.". Froman said the US companies are the friends of India.

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'India to lead global growth; bet on financial services'

Ajay Piramal of Piramal Group hailing from a family that ran a very successful textile industry business, switched track to become one of India's renowned pharmaceutical entrepreneurs business. Today, he has holds the reputation of being one of India's savviest deal-makers and investors.

Speaking to CNBC-TV18, Piramal adds that he wishes to be both a strategic investor and a financial powerhouse focusing on sectors where the risks in execution have been overcome and are in need of last-mile funding. He says that the economy touching a bottom was one of the reasons behind the shift of his investment focus from overseas markets to India.

Below is the edited transcript of the show on CNBC-TV18

Q: After you sold your business to Abbott , you used the pile of cash to foray into real estate, financial services business and earned the reputation of being a very savvy and contrarian investor. What is your outlook regarding the investment climate?

A: As an investor, I exited the domestic Indian pharmaceutical business in 2010 as I felt the investment climate was not very conducive. In 2010, we decided to diversify a little and enter overseas markets. We invested USD 630 million in an information management company in the US. Now I think that the investment climate in India has probably hit a bottom and its time to re-look at investing in India.

Q: That's a contrarian view because at the moment one couldn't get more gloomier on India — the uninterrupted depreciation in the rupee, complete lack of any policy action.

A: My view was contrarian even in 2010. Investors wondered why we exited the pharmaceutical sector which was at its peak. But one look at the valuations for our domestic business in 2010 makes it clear that it will not be possible to get the same valuations today.

Q: Were you paid nine times your sales figures?

A: A little over that and about 30 times operating profits.

Q: Putting that into perspective, the Daiichi-Ranbaxy deal was five times sales?

A: That's right.

Q: Do you think those valuations will return?

A: You can never say 'never'. It looks difficult today because the domestic economic environment is not what it used to be. Frankly, the buzz that India generated in 2010 is not there today. I don't think there is any deal that's taking place at these valuations today.

Q: You mean the buzz in the pharma sector?

A: The buzz in the pharma sector, the buzz about India as a really hot growth economy is not what it was in 2010.

Q: Yet you think today is not a bad time for investment in India?

A: I believe that in the future India's growth rate in is going to be higher than rest of the world. There are so many needs much we have — consumption, infrastructure. Economic growth has actually suffered a lot in the last few years. I don't see that trend continuing. There will be changes.

Q: But isn't it your style to look and invest slowly as and when the opportunity arises ?

A: That's right. Yes, I have been investing. Another plan that I followed up on after exiting the pharma sector in 2010 besides the information management investment, was to start planning a foray into financial services. That's where I found opportunities to invest.

An overview of the In the financial-services sector shows that the banking sector is stretched due to tepid economic growth and the lack of sufficient funds. The returns on offer are higher than what one would get in normal circumstances.

Q: You have also invested in Shriram Transport . Do you plan to be a strategic investor in high growth financial companies or become a financial powerhouse?

A: I plan to be both. I have already started a non-banking financial company (NBFC) which has been performing well. I have also invested in Shriram Transport because this sector is unique. Despite the entire commercial-vehicles sector coping with difficult times, Shriram Transport Finance has been able to record strong growth with a change in the focus on funding second-hand vehicles.

I believe that there are many sectors such as infrastructure which need last mile funding and the risks in execution have been overcome.

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Why Chidambaram is the right man in the wrong party

R Jagannathan
Firstpost.com

It was often said of Atal Behari Vajpayee that he was the right man in the wrong party a liberal caught up in the right-wing Bharatiya Janata Party. We don't know that for sure, but the observation is probably truer of Palaniappan Chidambaram for the opposite reason a right-wing reformer caught up in a hopelessly populist Congress party.

At Firstpost, this writer has often criticised Chidambaram for his half-hearted efforts at reform , but I must also acknowledge this is not the true Chidambaram. This is the only kind of reform we will get when a Chidambaram has the deadweight of the Congress party tied to his waist.

The truth is the Congress does not love doers and no-nonsense reformers like Chidambaram. It prefers incompetents, whether it is for the prime minister's job, or the home minister's or the finance minister's as Manmohan Singh, Shivraj Patil and Sushilkumar Shinde, and Pranab Mukherjee proved to be. (To be fair, Mukherjee was a good administrator, but he had his image of a tinkerer working against him all the time).

Also See:

Come back Chidambaram, your job is here, not in Washington

Chidambaram and Sharma's US visit is a waste of time

Increase India's competitiveness to cash in on rupee fall: Indranil Pan

Chidambaram is given the job only when the Congress party has no further incompetents to spare or when the situation is desperate. He got the finance minister's job in 2004 in order to provide a counterweight to the Left whose support the Congress depended on not because the party believed in his reforms platform.

The party chief could also not have been unaware that Manmohan Singh and Chidambaram did not share a great equation and so making him FM was a good counter-weight to Singh's reformist credentials too. The party then forced Chidambaram to do things he would not otherwise have done like the farm loan waivers of 2008.

He got the Home Minister's job in 2008 after Shivraj Patil made a hash of it; he got the finance minister's job again last year after Mukherjee failed to deliver the goods (though, one must add, the party didn't give Pranab the support he needed for it).

He has gotten the job of rescuing the economy only because the Congress party's situation is desperate. Once again, the party's calculations are purely political and not about the country. The party needs reformer Chidambaram in order to push through its economically dangerous Food Security and other bills. Chidambaram is the mukhauta behind whose mask the Congress can push bad ideas.

Chidambaram's recent airdash to Washington shows why he could have a made a success of the external affairs ministry as well.

In an increasingly interdependent world, foreign affairs is as much about economics as geopolitics. Chidambaram's Washington trip, reportedly to calm investor jitters over India's economic slowdown and the rupee's free fall, may have been a waste otherwise, but we have now seen yet another demonstration of his capabilities.

In the current trip, he has done what Manmohan Singh and Salman Khurshid couldn't effectively put India's case across to influential sections of the Washington elite.

According to a report in The Times of India today, Chidambaram showed up the US hypocrisy on economic issues for what it is worth. US businessmen have been raising a hue and cry over many issues market access, protectionist barriers to US business, and violation of drug patents.

First, he pointed out that this was exactly what the US was doing. The US was making laws to restrict the movement of IT professionals, which was essentially a non-tariff barrier to trade in services.

Next, he pointed out that the fuss over compulsory licensing of Bayer's anti-cancer drug Nexavar was much ado about nothing. The US had commandeered ciprofloxacin drugs when it had its anthrax scare after 9/11. Moreover, against one case of compulsory licensing in India, Italy and Canada had done four, Malaysia three and Indonesia six.

Chidambaram and his team clearly put the Indian arguments across at a meeting of the US-India Joint Business council, and he is reported to have said that "business rivalries should not be brought to the political table."

According to the Times report, Chidambaram's officials drove the knife home when they pointed out that the US was ignoring the "elephant in the room" patent infringements by the Chinese, who had also effectively taken all manufacturing jobs away from the US and the developed world.

The short point is this: there's little doubt Chidambaram is competent. He is the best foreign minister India never had. The only question is: is he in the wrong party?

The writer is editor-in-chief, digital and publishing, Network18 Group

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Amar Bose, inventor of Bose audio systems, dies at 83

Amar G Bose, the Indian-American visionary entrepreneur and acoustics pioneer, famous for making high-quality Bose audio systems and speakers for home users, auditoriums and automobiles, has died.

He was 83. Bose's death was announced on Friday by his company Bose Corp's president, Bob Maresca, and the Massachusetts Institute of Technology, where Bose was on the faculty for more than 40 years.

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Bose died on Friday at his home in Wayland, Massachusetts. His death was confirmed by his son, Vanu G Bose. "Bose founded Bose Corporation almost 50 years ago with a set of guiding principles centred on research and innovation," Maresca was quoted by the New York Times as saying in a statement.

"That focus has never changed." Bose was born on November 2, 1929, in Philadelphia. His father, Noni Gopal Bose, was a Bengali freedom fighter who was studying physics at the Calcutta University when he was arrested and imprisoned for his opposition to British rule. Noni Gopal Bose escaped and fled to the US in 1920, where he married an American schoolteacher.

At 13, Amar Bose began repairing radio sets for pocket money for repair shops in Philadelphia. As founder and chairman of the privately held company, Bose focused relentlessly on acoustic engineering innovation. His speakers, though expensive, earned a reputation for bringing concert-hall-quality audio into the home.

And by refusing to offer stock to the public, Bose was able to pursue risky long-term research, such as noise-cancelling headphones and an innovative suspension system for cars, without the pressures of quarterly earnings announcements.

A perfectionist and a devotee of classical music, Bose was disappointed by the inferior sound of a high-priced stereo system he purchased when he was an MIT engineering student in the 1950s. His interest in acoustic engineering piqued when he realised that 80 percent of the sound experienced in a concert hall was indirect, meaning that it bounced off walls and ceilings before reaching the audience.

This realisation, using basic concepts of physics, formed the basis of his research.

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Decoding the Modi QA: Where he goofed, where he didn’t

R Jagannathan
Firstpost.com

Much has been made of Narendra Modi's reference to a puppy caught under the wheels of a car he wasn't driving in answer to a question on 2002. It was a godsend to his detractors, who used it to suggest what a crass man he is. But it is worth decoding Modi's words in the Reuters interview (given below) in a more neutral way.

Given below are Modi's replies to Reuters' questions, and our interpretation of what they mean, or could have meant, and what they certainly could not mean. Our comments are in itals after Modi's replies.

Q: Is it frustrating that many people still define you by 2002?

Modi's reply: People have a right to be critical. We are a democratic country. Everyone has their own view. I would feel guilty if I did something wrong. Frustration comes when you think "I got caught. I was stealing and I got caught." That's not my case.

Wonder why his critics did not latch on to this opening paragraph where he makes a reference to getting caught after stealing. Though Modi is obviously saying that he had done nothing wrong in 2002, the reference to getting caught while stealing has an import of its own. Is he trying to say frustration can result only from getting caught? Or that he did not steal and hence is frustrated when people blame him?

Also see:

Uproar over Modi's comment on 2002 riots: Who said what

2002 Gujarat riots and Modi: The continuing absence of grace

'Puppy' analogy: How Modi's media machine dropped the ball

Do you regret what happened?

I'll tell you. India's Supreme Court is considered a good court today in the world. The Supreme Court created a special investigative team (SIT) and, top-most, very bright officers who oversee the SIT. That report came. In that report, I was given a thoroughly clean chit, a thoroughly clean chit.

Another thing, any person if we are driving a car, we are a driver, and someone else is driving a car and we're sitting behind, even then if a puppy comes under the wheel, will it be painful or not? Of course it is. If I'm a chief minister or not, I'm a human being. If something bad happens anywhere, it is natural to be sad.

This puppy statement has been deemed most controversial by the commentariat. Was this a reference to Muslims killed in 2002? If it was, the comment was disastrous. If by this he meant he would be sad even if a puppy was caught under his car, it's not so bad. But Modi's surely was asking for it with this analogy. Nobody will give him the benefit of doubt.

The clean chit from the SIT is also a figleaf. It doesn't help him since the courts have still not closed the matter.

Should your government have responded differently?

Up till now, we feel that we used our full strength to set out to do the right thing.

Nothing of note here. He has always said he did what was his duty.� If people died, it could not be blamed on him.

But do you think you did the right thing in 2002?

Absolutely. However much brainpower the Supreme Being has given us, however much experience I've got, and whatever I had available in that situation, and this is what the SIT had investigated.

The key phrases to note are "however much experience I've got" and "whatever I had available in that situation" these are essentially Modi's codewords for saying that if anything went wrong, it could have been due to his inexperience in handling riots at that time, but he can't say it too loudly since it would destroy his good governance plank. Hence the need to add "whatever I had available" probably a reference to the fact that the army took its time coming to help, by which time many deaths had occurred in communal rioting. Modi's critics has been pointing out that the word "sorry" never escapes his lips, but Modi probably sees the apology demand as a trap, and an acceptance of complicity.

Do you believe India should have a secular leader?

We do believe that … But what is the definition of secularism? For me, my secularism is, India first. I say, the philosophy of my party is 'Justice to all. Appeasement to none.' This is our secularism.

This is Modi's standard line: it sends out a message both to his Hindutva fans (no appeasement of Muslims) without giving his so-called secular detractors another thing to criticise (justice to all surely cannot exclude Muslims.)

Critics say you are an authoritarian, supporters say you are a decisive leader. Who is the real Modi?

If you call yourself a leader, then you have to be decisive. If you're decisive then you have the chance to be a leader. These are two sides to the same coin … People want him to make decisions. Only then they accept the person as a leader. That is a quality, it's not a negative. The other thing is, if someone was an authoritarian then how would he be able to run a government for so many years? … Without a team effort how can you get success? And that's why I say Gujarat's success is not Modi's success. This is the success of Team Gujarat.

Here, Modi is defining a leader as someone who can take decisions in contrast to the UPA, which cannot take bold decisions. By implication he is saying that bold decisions may sometimes seem authoritarian. Modi prefers dealing with bureaucrats rather than empowering fellow politicians. The reference to Team Gujarat is probably a reference to his comfort with commanding bureaucrats who don't have problems with his authority. Only rival politicians do.

What about the suggestion that you don't take criticism?

I always say the strength of democracy lies in criticism. If there is no criticism that means there is no democracy. And if you want to grow, you must invite criticism. And I want to grow, I want to invite criticism. But I'm against allegations. There is a vast difference between criticism and allegations. For criticism, you have to research, you'll have to compare things, you'll have to come with data, factual information, then you can criticise. Now no one is ready to do the hard work. So the simple way is to make allegations. In a democracy, allegations will never improve situations. So, I'm against allegations but I always welcome criticism.

Again, a standard Modi line. He is effectively saying he is open to criticism that is constructive which cannot come from politicians out to carve a niche for themselves. Allegations are the result of politics.

On his popularity in opinion polls

I can say that since 2003, in however many polls have been done, people have selected me as the best chief minister. And as best chief minister, it wasn't just people from Gujarat who liked me, not like that. People outside of Gujarat have also voted like that for me. One time, I wrote a letter to the India Today Group's Aroon Purie. I requested him "Every time I'm a winner, so next time please drop Gujarat, so someone else gets a chance. Or else I'm just winning. Please keep me out of the competition. And besides me, give someone else a shot at it."

Here Modi is unable to conceal his real self and unselfconscious gall: it comes across as assertive to his fans, and as arrogant to those who dislike him. How else does one interpret the statement that he asked India Today to drop Gujarat from the comparison, or else others would not get a "chance." This is both presumptuous and insufferable. But that is Modi, like him or not.

Allies and people within the BJP say you are too polarizing a figure

If in America, if there's no polarization between Democrats and Republicans, then how would democracy work? It's bound (to happen). In a democracy there will be a polarisation between Democrats and Republicans.

This is democracy's basic nature. It's the basic quality of democracy. If everyone moved in one direction, would you call that a democracy?

Perhaps one of his best answers in this Q&A. He has neatly deflected the idea of polarisation as essential to democracy. And why consensus is not necessary for forward movement.

But allies and partners still find you controversial

Up till now, no one from my party or the people who are allied with us, I've never read nor heard any official statement (about this from them). It might have been written about in the media. They write in a democracy … and if you have any name that this person is there in the BJP who said this, then I can respond.

This is neither here nor there. Modi did not answer this question, and his interviewers were not prepared to quote even LK Advani on the note he issued while sulking in his tent over Modi's elevation as chief of campaign committee last month.

How will you persuade minorities, including Muslims, to vote for you?

First thing, to Hindustan's citizens, to voters, Hindus and Muslims, I'm not in favour of dividing. I'm not in favour of dividing Hindus and Sikhs. I'm not in favour of dividing Hindus and Christians. All the citizens, all the voters, are my countrymen. So my basic philosophy is, I don't address this issue like this. And that is a danger to democracy also. Religion should not be an instrument in your democratic process.

This reply is an addendum to his earlier one on "justice for all and appeasement of none." In giving this reply, Modi is essentially side-stepping his response to minorities. So we don't have an answer to the question: how will he deal with them?

If you become PM, which leader would you emulate?

The first thing is, my life's philosophy is and what I follow is: I never dream of becoming anything. I dream of doing something. So to be inspired by my role models, I don't need to become anything. If I want to learn something from Vajpayee, then I can just implement that in Gujarat. For that, I don't have to have dreams of (higher office in) Delhi. If I like something about Sardar Patel, then I can implement that in my state. If I like something about Gandhiji, then I can implement that. Without talking about the Prime Minister's seat, we can still discuss, that yes, from each one we have to learn the good things.

This reply puts Modi apart from widely-accepted leaders of the past, even while seeking to claim their heritage and his own space. Politically sensible.

On the goals the next government should achieve

Look, whichever new government comes to power, that government's first goal will be to fix the confidence that is broken in people. The government tries to push a policy. Will it continue that policy or not? In two months, if they face pressure, will they change it? Will they do something like — an event happens now and they'll change a decision from 2000? If you change decisions from the past, you will bring the policy back-effects. Who in the world will come here?

So whichever government comes to power, it would need to give people confidence, it should build the trust in people, "yes, in policies there will be consistency", if they promise people something, they will honor that promise, they will fulfil. Then you can position yourself globally.

This should have been Modi's key message his focus on economic growth and governance. He has managed to suggest that the UPA is indecisive, but he has not managed to convey the suggestion that he is the answer. A missed chance, despite being given the opportunity.

Modi's spin doctors have a lot of coaching to do in future one-on-ones. Modi's spin doctors have a lot of coaching to do in future one-on-ones.

People say economic development in Gujarat is hyped up

In a democracy, who is the final judge? The final judge is the voter. If this was just hype, if this was all noise, then the public would see it every day. "Modi said he would deliver water." But then he would say "Modi is lying. The water hasn't reached." Then why would he like Modi? In India's vibrant democracy system, and in the presence of vibrant political parties, if someone chooses him for the third time, and he gets close to a two-third majority then people feel what is being said is true. Yes, the road is being paved, yes, work is being done, children are being educated. There are new things coming for health. 108 (emergency number) service is available. They see it all. So that's why someone might say hype or talk, but the public won't believe them. The public will reject it. And the public has a lot of strength, a lot.

A good reply, politically correct.

Should you be doing more for inclusive economic growth?

Gujarat is a state that people have a lot of expectations from. We're doing a good job, that's why the expectations are high. As they should be. Nothing is wrong.

Nothing controversial here.

On indicators like malnutrition, infant mortality

Infant mortality has improved tremendously in Gujarat, tremendously. Compared to every other state in Hindustan, we are a better performing state. Second thing, malnutrition, in Hindustan today, real-time data is not available. When you don't have real time data, how are you going to analyse?

We do believe in inclusive growth, we do believe that the benefits of this development must reach to the last person and they must be the beneficiary. So this is what we're doing.

Blaming delayed data for malnutrition is not going to help Modi. But claiming that Gujarat is a better performing state blandly won't help. If he has the data showing significant improvement, he should have produced it.

People want to know who is the real Modi Hindu nationalist leader or pro-business chief minister?

I'm nationalist. I'm patriotic. Nothing is wrong. I'm a born Hindu. Nothing is wrong. So, I'm a Hindu nationalist so yes, you can say I'm a Hindu nationalist because I'm a born Hindu. I'm patriotic so nothing is wrong in it. As far as progressive, development-oriented, workaholic, whatever they say, this is what they are saying. So there's no contradiction between the two. It's one and the same image.

Another controversial but clever reply. Modi is not calling himself a Hindu nationalist, but he does not deny the tag either. He gives it a different spin, pointing out that he is a nationalist (not anything anyone can take exception to), and born a Hindu. Hence he is saying he is a nationalist Hindu, not a Hindu nationalist (a Hindu fanatic). The statement can mean different things to different people, which is probably what Modi intended anyway.

On Brand Modi and people behind the PR strategy

The western world and India there's a huge difference between them. Here, India is such a country that a PR agency will not be able to make a person into anything. Media can't make anything of a person. If someone tries to project a false face in India, then my country reacts badly to it. Here, people's thinking is different. People won't tolerate hypocrisy for very long. If you project yourself the way you actually are, then people will accept even your shortcomings. Man's weaknesses are accepted. And they'll say, yes, okay, he's genuine, he works hard. So our country's thinking is different. As far as a PR agency is concerned, I have never looked at or listened to or met a PR agency. Modi does not have a PR agency. Never have I kept one.

This is a surprise answer, since the widespread belief is that APCO manages his PR. Unless his denial means the PR is for the government, not him personally.

Bottomline: Modi's real strength is mass communication and public speaking. In direct one-on-ones, he can sometimes goof up as he did in this case. This is why Congress president Sonia and her son never give interviews.

In any Q&A, 2002 will always figure among the questions, as every reporter worth his salt feels compelled to raise it. And Modi's explanations often end up making him look worse that he is.

Modi's spin doctors have a lot of coaching to do in future one-on-ones.

The writer is editor-in-chief, digital and publishing, Network18 Group

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Glenmark's ANDAs for epilepsy in US face legal challenge

Glenmark Pharmaceuticals on Friday said its applications for generic version of epilepsy treatment drug Vimpat in America have been challenged by UCB Inc and other companies in a US court.

"UCB Inc, UCS Pharma GmbH, Research Corporation Technologies Inc and Harris FRC Corporation filed suit against Glenmark Generics Ltd and Glenmark Generics Inc on July 10, 2013 in the US District Court of Delaware seeking to prevent Glenmark from commercialising its ANDAs prior to expiration of the US Patent No RE 38,551," Glenmark said in a filing to BSE.

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The company's subsidiary Glenmark Generics had filed the abbreviated new drug applications (ANDAs) for Lacosamide tablets and oral solution with US Food and Drug Administration (USFDA) with a Paragraph IV certification, Glenmark said.

"If Glenmark is successful in its challenge of the patent, it will garner 180 days exclusivity for its products," it added.

According to IMS Health data for the 12 months ending March 31, 2013 Vimpat tablets and solution had total US sales of approximately USD 353 million, Glenamrk said.

Vimpat is indicated for an adjunctive therapy in the treatment of partial-onset seizures in adults with epilepsy.

The company scrip closed at Rs 597.70 on the BSE, down 1.14 per cent from its previous close.

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