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Does secular socialist have any meaning in constitution?

Written By Unknown on Sabtu, 31 Januari 2015 | 20.07

R Jagannathan
Firstpost.com

The� two missing words (secular, socialist) �in the Information and Broadcasting (I&B) ministry's advertisement featuring the Indian constitution's preamble, whether through default or design, have served two useful purposes. One is to underline the pointlessness of having them in the preamble in the first place when no government feels constrained by their presence; the other is the reality that these words were not part of Babasaheb Ambedkar's well-thought-out original constitution adopted by the constituent assembly. We need to acknowledge that they were not intended to be there at all even if we don't now do anything to remove them.

To take the second point first, Minister of State for I&B, Rajyavardhan Rathore, said the "photo of the original preamble was a way of honouring the founding fathers of the constitution". He slipped in the fact that these changes were inserted in 1976. That was the second year of Indira Gandhi's infamous internal emergency, and the preamble was modified purely for political purposes.

It is doubtful if these changes could have been made without sending most of the opposition to prison. Mrs Gandhi packed off all major political leaders - from the right-wing Jana Sangh (today's BJP) to the various Socialists and the Left - to jail and passed these and several other constitutional amendments in a handcuffed and tongue-tied parliament. So, in a sense, the amendments went against the spirit of the constitution as all major freedoms guaranteed by Ambedkar's constitution were brutally suppressed at that time. The courts were running scared and the media was in chains when these words were incorporated. Their presence was thus an immoral, if not illegal, entry in the statute book.

In today's world, it is unlikely that these constitutional amendments would have passed legal muster for the simple reason that they were passed when both houses of parliament had been gagged. Even ordinary bills cannot be passed if the houses are not in order (hence the recent Rajya Sabha logjam); so can major constitutional amendments be passed when key members were sent in jail?

The reason why "secular" and "socialist" were inserted in 1976 is worth retelling. With leaders from all ends of the political and social spectrum in jail – ranging from the right-wing RSS and Jamait-e-Islami, which were banned, to various caste-based Lohia-ite, Socialist and Left factions - the government's actions clearly lacked legitimacy. They would have been opposed both by left and right. The word "secular" was inserted to validate the action of sending "communal" leaders to prison and banning their organisations; and the word "socialist" was intended to similarly justify the incarceration of the left. Indira Gandhi bunged in these two words to justify her undemocratic actions against leaders from right to left.

Take the word "secular". What extra idea does the insertion of this word convey when Ambedkar's preamble already guaranteed Indian citizens "Liberty of thought, expression, belief, faith and worship..." among other things. Does the word secularism add one iota of extra freedom to the basic idea of liberty of belief and faith as enunciated in the pre-1976 preamble, and additionally expanded on by article 25 of the constitution, which guarantees "Freedom of conscience and free profession, practice and propagation of religion"?

Of course, with the BJP in power today, it suits the party's political opponents, many of them descendents and proteges of some of the leaders jailed by Indira Gandhi, to pretend that they want "secular" and "socialist" to remain in the constitution. In fact, some constitutional experts now claim that these words can�never�be removed since they form part of the "basic structure" of the constitution that has been upheld by the Supreme Court. Arvind Datar is quoted in� The Economic Times �as saying that "not even a government which wins 543 out of 543 Lok Sabha seats can change this."

This view is probably wrong, for it is fanciful to pretend that elements that were never there in the original constitution can suddenly become part of the "basic structure". It beggars reason why a "basic feature" force-fitted into the preamble 26 years after the country adopted Ambedkar's constitution cannot tinker with it 39 years later.

However, it is not important to change what does not make a difference to how the state conducts social and economic policy. The insertion of the word "secular" did not prevent Rajiv Gandhi from overturning the Shah Bano judgment or offering Haj subsidies and quotas on the basis of religion. Nor did the insertion of the word "socialist" prevent Narasimha Rao from moving away from socialism in 1991 or the Vajpayee government from privatising public sector companies.

The words "secular" and "socialist" have been robbed of all meaning in the Indian context. They are two nonsensical terms inserted by the whims of an autocratic PM, and they remain there on the whims of an intellectually-bankrupt political class.

We need expend no further energy on words that mean nothing.

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


20.07 | 0 komentar | Read More

Obama's speech: Gap between what is said what we heard

R Jagannathan
Firstpost.com

The big question we must ask ourselves when we discuss President Barack Obama's Siri Fort speech on January 27 is this: did we all hear the same speech? Or did we dissect it according to our individual biases?

If one were to take a look at the buzz on social media, the traditional Modi-baiters saw in Obama's speech, and especially his message of religious tolerance and diversity, as an oblique criticism of the government and its Parivar backers. Thin-skinned Modi-bhakts were upset that Obama gave us a lecture on secularism when America is far from being a just society.

In fact, what we try to read in Obama's speech – or, for that matter anybody's speech – tells us more about ourselves than about the person delivering it.

Those who believe that Obama had the Sangh Parivar in mind when he talked about "freedom of conscience and….. right to freely profess and practice and propagate religion" should also ponder another sentence: "In both our countries, in all countries…freedom of religion is the utmost responsibility of the government but also the responsibility of every person."�(Read� here �and� here �for some of Obama's Siri Fort quotes).

He said�both�countries, not only India. He was probably thinking aloud about freedom of conscience, which is endangered everywhere, including America, where Christian fundamentalists are busy demonising Islam.

His intent became clear when he mentioned the� Sikh Gurdwara massacre in Wisconsin .�The fact is the US and Europe probably house more Islamophobes than India. Obama himself has been the victim of a bitter Christian right-wing smear campaign that which saw him as a closet Muslim, thanks to his middle name "Hussain."

On the other hand, the internet Hindus on twitter seemed to recoil with a guilty conscience on his call for religious freedom. One wonders why. "Ghar wapsi" is nothing if not an effort to reconvert people who left the Hindu faith, and surely freedom of religion applies as much here as in the reverse. Surely, Obama could not have meant a one-way freedom of conscience and religion. He may not back "ghar wapsi", but it is logically implied when he said article 25 of the Indian constitution guarantees "the right to freely profess and practise and propagate religion."

Then again, Obama said this: "Every person has a right to practice the faith that they choose and�to practice no faith at all�and to do so free of persecution, fear or discrimination." What is objectionable in this? There are, arguably, more critics of atheism in god-fearing America than in India. Heading towards Saudi Arabia from India, Obama could have been referring to that kingdom's complete absence of freedom of religion and the death sentence for apostasy. Atheism and agnosticism have never been issues in Hinduism, and Buddhism and Jainism are essentially non-theistic faiths. So where did he really criticise us for Modi-baiters to get ecstatic about it?

Or take his reference to diversity. Obama said "our�diversity is our strength" and cautioned both India and the US to guard against sectarianism.

Note: the operative word is "our". He did not say diversity is only America's strength, but of both countries. It's a compliment to us. He also expanded on this theme: "IfAmerica shows itself as an example of its diversity and the capacity to live and work together in common effort and common purpose, and�if�India, as massive as it is with so much diversity, so many differences, is able to continuously reaffirm its democracy so that is an example for every other country…That's what makes us world leaders."(Italics mine)

Here Obama is essentially applauding India's diversity in the past and exhorting it to remain so in the future. Note the "if" in both sentences. He is essentially saying that both US and India are great countries only "if" they can retain their diversity and keep sectarian differences at bay.

We know that the US is hardly the exemplar in racial justice, as the recent� riots and violence over the shooting of a Black youth �by the Ferguson (Missouri) police prove. It is hardly likely that Obama had just Sadhvi Niranjan Jyoti or Sakshi Maharaj or the RSS's efforts to call India a Hindu nation in mind. US right-wingers call America a Christian nation – a nation where� nearly half the population believes �that Darwin was off his rocker by giving us his theory of evolution when, in fact, God created the world through "intelligent design." Religion and the narrowness of religious beliefs is as much a problem in America as in India.

About India specifically, Obama said: "India is defined by diverse cultures, creed, languages. When we were born, people who looked like us couldn't even vote in our country. There were times when I was treated differently because of the colour of my skin. My grandfather was a cook in the British army. Branches of Michelle's family were slaves as well as slave-owners. A young boy delivering lunch on a bicycle, a young girl hauling a bucket of water. Even as we live in a world of inequality, a tea-seller can become Prime Minister. Everyone has a chance."

Does this remotely sound like Obama was just giving us a lecture on how secular and just America is superior to communal India?

Then Obama talked about women's empowerment, the girl child, and safety. We could take this as mild criticism of us, given our daily news fare of rape and sexual harassment. Or we could take it as a challenge we all need to meet. He said: "Every girl's life matters. Every daughter deserves the same chance as our sons. Every woman should be able to go about her day...and be safe and be treated with the respect and dignity that she deserves."

This is hardly something to take amiss, when our own Prime Minister talked about the same issues on I-Day and there is now a�Beti Bachao, Beti Padhao�scheme on the anvil.

On climate change, he said what needed to be said: that we have to learn to grow with far less use of fossil fuels than before. Who can argue with that?

The moral of the story is simple: what we got was a heart-felt message from the US President, but we read it as a condemnation of Modi or the Sangh parivar. It goes to prove a basic human truth: there is a gap between what is said and what we choose to hear.

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


20.07 | 0 komentar | Read More

Indian rupee snaps its 4-week winning spree

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

The Indian rupee snapped its 4-week winning spree against the American currency, slipping 44 paise to 61.86 per dollar on month-end dollar demand from importers and banks. The rupee resumed slightly lower at 61.49 per dollar as against the last weekend's level of 61.42 and fell further to 62.03 on good dollar demand from importers and some banks.

However, it recovered afterwards to 61.29 on selling of dollars by exporters in view of strong foreign capital inflows into equity market as foreign portfolio investors (FPIs) infused a net USD 779.85 USD million during the week as per SEBI's record.

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

Meanwhile, the Indian benchmark sensex dropped by 95.89 points or 0.33 percent to 29,182.95 after hitting an all-time high of 29,844.16. Pramit Brahmbhatt, Veracity Group CEO said," After appreciating for four weeks last week Rupee lost its way and depreciated by one percent during the week. The month end dollar demand from oil importers and corporates forced Rupee to trade weak and close at 61.86".

Also the local equities lost its ground last week and posted first weekly loss in three weeks which further dented the movement of Rupee.


20.07 | 0 komentar | Read More

Prabhu pitches for greater investments in Railways

Suresh Prabhu said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railway Minister Suresh Prabhu pitched for greater investments in railways and said development in the sector will help the country grow. The minister was here to flag off two new trains - Ahmedabad-Chennai bi-weekly express and Ahmedabad-Darbhanga Jansadharan express. He also launched Wi-fi facility at the city railway station.

"It is a matter of pleasure for the country that our economy is on the path of improvement and progress. With this, responsibility of Railways has also increased. We need to work on many levels," said Prabhu.

He said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railways will fulfil the needs for Gujarat's development as well. I will discuss with the Chief Minister on how to work on larger scale for improvement," he said. Prabhu later met with Chief Minister Anandiben Patel.

The minister also claimed that Railways was priority of the Prime Minister Narendra Modi-led government and the sector can contribute to his mantra of 'Sabka Sath, Sabka Vikas' (participation of all for development of all).

"Development of Railways is on the priority list of our Prime Minister. If railways develop, economy will also be strengthened... and GDP (of the country) will also rise by 2-3 per cent. Though our GDP is growing today, with much efficient railways system it will grow rapidly," he said. The minister said further development in the sector will also create jobs for youths.

Prabhu appealed to people to join Modi's flagship 'Swachh Bharat Abhiyan' and said the mission is associated with country's identity.


20.07 | 0 komentar | Read More

Grasim Industries Q3 profit seen up 2% to Rs 128 cr: Poll

Written By Unknown on Jumat, 30 Januari 2015 | 20.07

Grasim Industries' third quarter standalone profit after tax is expected to increase 2 percent year-on-year to Rs 128 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Grasim Industries ' third quarter standalone profit after tax is expected to increase 2 percent year-on-year to Rs 128 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Total income of the Aditya Birla Group company is seen rising 5 percent to Rs 1,540 crore during October-December quarter from Rs 1,470 crore in the year-ago period.

However, operating profit may fall 14 percent year-on-year to Rs 180 crore and margin may decline 250 basis points to 11.7 percent in the quarter gone by.

Consolidated numbers of the company already discounted in the share price through UltraTech earnings. Grasim holds 60.3 percent stake in UltraTech Cement . Ultratech contributes more than 70 percent to the topline and bottomline of consolidated Grasim numbers.

Factors:

Weak viscose staple fibre (VSF) price may continue to result in muted earnings

VSF business may continue to be under pressure with prices showing little strength. VSF volumes are estimated to remain flat on year-on-year basis.

Grasim may post a 2-3 percent drop in VSF realisations as global prices remain subdued.

Key issues to watch out for are:

Outlook on VSF business and strategy to utilise upcoming capacities globally

Cement business outlook on demand and pricing, and status of capacity addition.


20.07 | 0 komentar | Read More

JSW Steel Q3 profit slips 29.5% to Rs 329 cr

JSW Steel's third quarter consolidated net profit fell 29.5 percent year-on-year to Rs 329 crore, impacted by higher finance cost and lower other income.

Moneycontrol Bureau

JSW Steel 's third quarter consolidated net profit fell 29.5 percent year-on-year to Rs 329 crore, impacted by higher finance cost and lower other income.

Total income of the steel company declined 2.9 percent to Rs 13,223 crore in the quarter ended December 2014 from Rs 13,622.8 crore in the year-ago period.

Operating profit (EBITDA) slipped 4.7 percent year-on-year to Rs 2,296 crore and margin declined 30 basis points to 17.4 percent in the quarter gone by.

Finance cost shot up 18.7 percent on yearly basis to Rs 936.5 crore while other income declined 10 percent to Rs 12.99 crore during October-December quarter.

During the quarter, the company reported crude steel production of 3.17 million tonnes while saleable steel sales volume stood at 3.03 million tonnes (down 2 percent year-on-year).

The scrip of JSW Steel closed at Rs 977.30, down Rs 16, or 1.61 percent on the BSE.


20.07 | 0 komentar | Read More

CIL OFS largest, may fetch Rs 25,400 cr: Divestment Secy

In a big boost to Narendra Modi government's divestment drive, the 10 percent stake sale in Coal India today got over subscribed by 1.1 times and fetched about Rs 22,600 crore, while the retail portion was under-subscribed.

Speaking exclusively to CNBC-TV18's Sapna Das, divestment secretary Aradhana Johri said the Coal India offer-for-sale (OFS) is the biggest public issue of all time. She suggested the government will soon decide on retaining green-shoe option. 

This is also the biggest ever share sale by any private or public sector company in India and exceeds the previous record of over Rs 15,000 crore made by Coal India itself in 2010.

According to Johri, the government is likely to garner close to Rs 25,400 crore from the Coal India OFS. The divestment witnessed huge participation by foreign investors, who are expected to have pumped in around Rs 5,400 crore.

The finance ministry has indicated there will be plenty of divestment activity before the end of this fiscal, Johri concluded.  

Below is verbatim transcript of the interview:

Q: What is your first take on the fact that this issue has now almost garnered more revenue than what government has been able to earn on any of the issues in any of the financial years in the past. Around Rs 24,000 crore is what we understand you have garnered?

A: Yes, this is certainly the biggest issue of all times. It is not only the largest single issue but is also equal to the highest collections for the whole year of the highest of any year in the past.

It is a matter of great satisfaction, it speaks of the investment climate in the country and the fact that people are looking at the economy of India, people are looking at India as an investment destination.

I am very happy that we have got a lot of foreign institutional investor (FII) participation, the figures are still being crunched out by the stock exchanges but it is approximately Rs 5,400 crore which is again the highest FII participation of any issue at all and in an OFS which is a single day it speaks a lot of the investment climate in India.


20.07 | 0 komentar | Read More

GNPA maintained; net NPA, restructuring dip: Andhra Bk

Andhra Bank has registered a more than four-fold jump in its net profit at Rs 201.71 crore in the third quarter ended December 2014, on higher interest income. In an interview to CNBC-TV18, CMD CVR Rajendran discusses on the numbers and the road ahead.

Andhra Bank  has registered a more than four-fold jump in its net profit at Rs 201.71 crore in the third quarter ended December 2014, on higher interest income. In an interview to CNBC-TV18, CMD CVR Rajendran discusses on the numbers and the road ahead.


20.07 | 0 komentar | Read More

JSW Steel Q3 profit seen down 11% to Rs 415 cr: Poll

Written By Unknown on Kamis, 29 Januari 2015 | 20.07

JSW Steel's third quarter profit is expected to fall 11 percent year-on-year to Rs 415 crore, according to the average of estimates of analysts polled by CNBC-TV18.

JSW Steel 's third quarter profit is expected to fall 11 percent year-on-year to Rs 415 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Total income is seen falling 3 percent to Rs 13,150 crore during the quarter from Rs 13,622.8 crore in the year-ago quarter due to tepid domestic demand and competitive export market.

Domestic business contributes 85-90 percent of total revenue and volumes.

Operating profit may slip 8 percent year-on-year to Rs 2,218 crore and margin may decline 80 basis points to 16.9 percent in the quarter ended December 2014 on the back of lower steel volumes and steel realizations.

Key issues to watch out for are domestic iron ore supply and prices; and China domestic steel demand and exports.


20.07 | 0 komentar | Read More

Expect spreads, NIMs to remain stable going ahead: HDFC

Housing finance company HDFC reported third quarter numbers which were bang in-line with estimates. Net interest income was up 14.4 percent year-on-year and profits saw an uptick of 11.5 percent.

Housing finance company HDFC  reported third quarter numbers which were bang in-line with estimates. Net interest income was up 14.4 percent year-on-year and profits saw an uptick of 11.5 percent. CNBC-TV18's Ritu Singh caught up with Keki Mistry, vice-chairman & CEO, HDFC, after the earnings announcement.

Below is the transcript of that conversation

Q: Your take…

A: The individual loan book would probably be one of the important drivers so if we add back loans we sold in the last 12 months the growth in the individual loan book would have been 23 percent. In this 12-month period we have sold more loans than what we normally sell. Our total loans sold, individual loans, is Rs 8,566 crore in the last 12 months so that would be one driver.

Second driver would be spreads. So if you look at spreads over the last several quarters, I would say several years spreads have generally remained stable within a band of 2 or 3 or 4 basis points up or down. For the 9-month period, spreads stood at 2.31 percent. If we were to look at spreads explicitly for second quarter then spreads were 2.30 percent and if you look at the first 6 months of the year spreads were 2.29 percent.

So from 2.29 they marginally moved up to 2.31 so spreads have remained stable and my sense is will continue to remain stable. On asset quality too, there are no signs of serious concern. Our gross non performing loan number in December stood at 0.69 percent which is exactly what it was in September of this year same 0.69 percent but it is a 8 basis point improvement over 0.77 percent which is were in December of last year. So, compared to December it is 8 basis point lower compared to September it is more or less the same, it is exactly the same.

Q: Both net interest margins and asset quality have remained largely stable with slight different margins. Can you share your outlook on both on the same?

A: Outlook could be spreads remain stable hopefully within a band of 2-3-4 basis points. Net interest margins should also broadly remain stable.

Q: Provisions have come in at about Rs 45 crore could you explain the increase both sequentially and over the last year?

A: If you look at the total amount of provisioning that we carry in the balance sheet a very large proportion of that provisioning is in respect of standard assets where there us no NPL, there us no sub standard asset but it is just that the regulators say that if we do a housing loan to an individual than 40 basis points of that loan amount has to be provided upfront in the profit & loss (P&L) account.


20.07 | 0 komentar | Read More

Adani Enterprises Q3 net seeen up 359% to Rs 312 cr: Poll

Adani Enterprises is expected to report a healthy performance in the quarter ended December 2014. According to the average of estimates of analysts polled by CNBC-TV18, profit is likely to jump 359 percent year-on-year to Rs 312 crore during the quarter.

Adani Enterprises  is expected to report a healthy performance in the quarter ended December 2014. According to the average of estimates of analysts polled by CNBC-TV18, profit is likely to jump 359 percent year-on-year to Rs 312 crore during the quarter.

Total income of the company is seen rising 21.3 percent to Rs 16,679 crore in the third quarter of current financial year 2014-15 from Rs 13,747 crore in same quarter last fiscal.

Core operating profit (ex-forex) may surge 44.9 percent on yearly basis to Rs 2,988 crore and margin may expand 290 basis points to 17.9 percent during the quarter, driven primarily by higher operating capacity in power.

Coal trading volumes are likely to remain steady in the quarter. Analysts expect coal trading to contribute around Rs 200 crore to earnings. However, due to the high leverage and fuel under-recovery at Adani Power , the losses are expected to drag down consolidated earnings albeit partly offset by robust earnings growth at Adani Ports .

The stock rallied 120 percent from the start of 2014. Today it rallied 4.83 percent as sources told CNBC-TV18 that the company may announce mega restructuring plan tomorrow.


20.07 | 0 komentar | Read More

Thermax Q3 profit may rise 23.7% to Rs 82.4 cr: Poll

Thermax's third quarter profit after tax is seen rising 23.7 percent year-on-year to Rs 82.4 crore, according to the average of estimate of analysts polled by CNBC-TV18.

Thermax 's third quarter profit after tax is seen rising 23.7 percent year-on-year to Rs 82.4 crore, according to the average of estimate of analysts polled by CNBC-TV18.

Total income is seen going up 15 percent to Rs 1,166 crore during the quarter from Rs 1,014 crore in same quarter last fiscal due to execution of few large projects (including Rs 1,700 crore project awarded in FY14 by Reliance) and strong order book of Rs 6,120 crore (up 25 percent Y-o-Y) at the start of the year.

Analysts expect base effect to help earnings in Q3 and Q4 Y-o-Y. As the Reliance project win ramps up, company's topline may start reflecting execution benefits, say analysts.

Operating profit may jump 31 percent year-on-year to Rs 119 crore and margin may expand 120 basis points to 10.2 percent in the quarter ended December 2014.

According to them, margin improvement in energy segment may be offset by margin contraction in environment segment.

Order inflows may continue to remain weak as Thermax failed to announce any major order during the quarter (it bagged only an EPC order worth Rs 351 crore), say analysts.

Key factors to watch out for are topline and order inflow guidance for FY16; losses in water & waste solutions and margin decline in air pollution control could be negative surprises; guidance of export business prospects and update on enquiry activities; and outlook on the subsidiaries.


20.07 | 0 komentar | Read More

CCEA OKs HDFC Bk's proposal to raise up to Rs 10k cr: Srcs

Written By Unknown on Rabu, 28 Januari 2015 | 20.07

The Foreign Investment Promotion Board had cleared HDFC Bank's proposal in December and had cleared Lupin's FDI proposal in November.

The Cabinet Committee on Economic Affairs (CCEA) has okayed HDFC Bank 's proposal to raise up to Rs 10,000 crore, sources tell CNBC-TV18. The decision on Lupin 's FDI proposals is still awaited.

HDFC Bank was planning to raise Rs 10,000 crore from foreign investors and Lupin is looking to raise FDI limit in the company to 49 percent. The Foreign Investment Promotion Board had cleared HDFC Bank's proposal in December and had cleared Lupin's FDI proposal in November.

Calling the move a positive one, Jignesh Shial, Research Analyst, IDBI Capital Markets, said the decision will come as further boost for the bank and ease its hurdle on the capital front.

"Overall we can say this was a hangover, this was probably a problem that the stock was facing and that is why it was consolidating for long and management was expecting it to get cleared. So, this will be a positive boost for the bank as such," he said.

HDFC Bank stock price

On January 28, 2015, HDFC Bank closed at Rs 1058.10, down Rs 15.9, or 1.48 percent. The 52-week high of the share was Rs 1093.00 and the 52-week low was Rs 618.00.


The company's trailing 12-month (TTM) EPS was at Rs 38.33 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 27.61. The latest book value of the company is Rs 179.87 per share. At current value, the price-to-book value of the company is 5.88.


20.07 | 0 komentar | Read More

Ease of doing business

Finance Minister may announce single window clearances for sectors such as real estate, or even allow automatic FDI in others.

Much has been said and done about this in the past several months the Narendra Modi government has been in power.

But Budget 2015 could further the cause that has clearly been very high on the PM's priority. Towards that end, Jaitley could announce a host of measures such as related to tax reform (of which more below), or announce providing more teeth to bodies such as the Project Monitoring Group or set up online, single-window clearances for sectors such as real estate, or even allow automatic FDI in others.

Beyond this, investors will also look for details on NITI Aayog, the announced replacement for the Planning Commission, to see how it can boost inter-state relations or suggest policy changes to boost ease of doing business.


20.07 | 0 komentar | Read More

Jobs

the economy needs to create 12 million jobs every year only to keep up with the youth that are entering the workforce.

As of one statistic, the economy needs to create 12 million jobs every year only to keep up with the youth that are entering the workforce – when the record over the seven years to 2012 (where data is available) has been about 1 million per year.

A broader issue that cannot be tackled with one specific push or initiative, higher job creation would result from steps the government will take to boost manufacturing, create infrastructure and augment overall economic growth.

But even more important is the need to announce a comprehensive policy for skill development, which would also call for higher spending on education, vocational training and enabling infrastructure.


20.07 | 0 komentar | Read More

Tax reform

Government has made definite progress on the goods and services tax (GST) and it will be rolled out from April 1, 2016.

The government has made definite progress on the goods and services tax (GST) in the last few months and it will almost certainly be rolled out from April 1, 2016. Now the market would look for details on it: with respect to goods that will come under it (or be exempted) and importantly, what the crucial revenue-neutral rate -- which has the potential to make or mar the tax reform -- would be.

There are other issues that corporates are looking forward to: such as more clarity on MAT on special economic zones while foreign investors would look for a word on the postponement of controversial GAAR (which for now is on track for April 2016) or a conclusive rollback of retro tax amendment – even though Jaitley has vowed to stay as far away from it as he can.

The Budget would also confirm whether the present government has altogether decided to put the direct tax code reform pursued by its predecessor in cold storage – which by all accounts it has – and whether it some plans of its own with respect to direct tax reform.


20.07 | 0 komentar | Read More

Titan Company Q3 profit may jump 14.2% to Rs 189 cr: Poll

Written By Unknown on Senin, 26 Januari 2015 | 20.07

Titan Company's third quarter reported profit is expected to surge 14.2 percent year-on-year to Rs 189 crore, according to the average of estimates of analysts polled by CNBC-TV18. Adjusted profit may report 6.5 percent during the quarter.

Titan Company 's third quarter reported profit is expected to surge 14.2 percent year-on-year to Rs 189 crore, according to the average of estimates of analysts polled by CNBC-TV18. Adjusted profit may report 6.5 percent during the quarter.

Analysts believe the bottomline may be boosted by lower interest cost while they expect muted topline growth from Titan in Q3.

Total income is seen going up 4.7 percent to Rs 2,802 crore in October-December quarter compared to Rs 2,676 crore in the quarter gone by.

Operating profit may increase 8.7 percent year-on-year to Rs 267 crore and margin may expand 30 basis points to 9.5 percent in the third quarter of current financial year 2014-15.

Jewellery

Closure of deposit schemes, modest festive demand, double-digit decline in gold prices may impact jewellery revenues during the quarter. Golden Harvest Scheme was used to constitute 30 percent of jewellery sales.

Lower gold prices could weigh in on the realisations. Margins in jewellery business could expand by 80-100 basis points, driven largely by mix improvement (higher share of studded jewellery) and a forward premium on international hedging of gold (Which may be partly offset by potential inventory losses owing to a lower domestic gold premium towards the end of the quarter).

Watches

Watches segment is likely to report 15 percent Y-o-Y revenue growth on a low base of last year. Margins in this business may expand on strong cost efficiencies. Only downside to revenues could come from heavy discounts given by the online players seen this festive season quarter.

Key factors to watch out for would be outlook on jewellery demand in a declining gold price scenario, signs of any pick up in demand and management comments on custom duty.


20.07 | 0 komentar | Read More

Idea Cellular Q3 profit may increase 3.8% to Rs 785cr: Poll

Idea Cellular's third quarter profit is seen going up 3.8 percent sequentially to Rs 785 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Idea Cellular 's third quarter profit is seen going up 3.8 percent sequentially to Rs 785 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Revenue may increase 5.4 percent to Rs 7,981 crore in the quarter ended December 2014 from Rs 7,569.9 crore in the same quarter last fiscal.

Operating profit is seen rising 6 percent to Rs 2,640 crore and margin may expand 17 basis points to 33.07 percent during the quarter on sequential basis. Margin growth may be aided by diesel price cuts and operating leverage.

Key performance indicators

Total volume of the telecom operator may rise 4.4 percent to 169.5 billion minutes in Q3 against 162.45 billion minutes carried on its network in previous quarter.

Minutes of usage are expected to increase 0.5 percent quarter-on-quarter to 386 minutes against 384 minutes in Q2FY15. Average revenue per user may go up 2 percent Q-o-Q to Rs 179.5 and revenue per minute may increase 0.8 percent to 46.3 paise in the quarter gone by.

Voice revenue per minute is seen rising 0.3 percent to 36.3 paise from 36.2 paise during the same period.

Quarter-on-quarter numbers may look smart given Q2 was a seasonally weak quarter for the telecom operator. In Q2FY15 revenue grew 0.1 percent while volume fell 1.7 percent.

Analysts may see big growth in the data business. In Q2, data revenues jumped 22.5 percent and volume growth was 21.25 percent. Data as a percentage of revenue was 14 percent and data revenue per minute increased 26.5 paise versus 26.3 paise Q-o-Q.


20.07 | 0 komentar | Read More

Maruti Suzuki Q3 profit seen up 29% to Rs 875 cr: Poll

Maruti Suzuki's third quarter profit is expected to jump 29 percent year-on-year to Rs 875 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Maruti Suzuki 's third quarter profit is expected to jump 29 percent year-on-year to Rs 875 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Revenue is seen going up 13.4 percent to Rs 12,352 crore in the quarter ended December 2014 from Rs 10,893.8 crore in the year-ago period, driven by better volume growth.

The India's largest car maker sold 3.23 lakh units during the quarter, up 12 percent compared to 2.88 lakh units sold in the same quarter last fiscal.

Operating profit may climb 19 percent on yearly basis to Rs 1,615 crore and margin may expand 140 basis points to 13 percent in the quarter gone by.

The improvement in margin may be due to favorable forex and operating leverage. The Japanese yen depreciated 7 percent against the rupee on sequential basis in Q3, which may boost margin by 50 basis points Q-o-Q.

Maruti may also get partial benefits of currency in imports as it hedged direct and indirect imports while it may get full benefits of currency in royalty expenses.

According to a poll, product mix deteriorated marginally, and share of higher margin exports & Swift vehicles reduced during the quarter. Discounts may remain flattish on sequential basis, say analysts.

Multiple new product launches in 2015 like SX4 Crossover (a large SUV), WagonR 7 seater and XA- Alpha (compact SUV) may aid sales growth, they say.


20.07 | 0 komentar | Read More

Amara Raja Batteries Q3 net may rise 6% to Rs 100 cr: Poll

Amara Raja Batteries' third quarter profit after tax is expected to increase 6 percent year-on-year to Rs 100.5 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Amara Raja Batteries ' third quarter profit after tax is expected to increase 6 percent year-on-year to Rs 100.5 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Analysts believe the high depreciation and lower other income may lead to slow growth in PAT.

Revenues of the battery manufacturer are seen going up 25 percent to Rs 1,080 crore in the quarter ended December 2014 from Rs 862.9 crore in same quarter last fiscal, driven by strong demand volume growth expected in both auto replacement and telecom battery segments.

Operating profit may jump 22 percent on yearly basis to Rs 183 crore but margin may decline 50 basis points to 16.9 percent during October-December quarter due to slightly inferior product mix. Higher contribution of lower margin telecom battery sales may restrict margin growth during the quarter.


20.07 | 0 komentar | Read More

Persistent $ revenue up 4.2% QoQ to $79.5mn, declares bonus

Written By Unknown on Minggu, 25 Januari 2015 | 20.07

Mid-tier IT firm Persistent Systems declared its consolidated dollar revenues grew 4.2 percent sequentially to USD 79.5 million -- a growth of 13.7 percent year-on-year.

Moneycontrol Bureau

Mid-tier IT firm Persistent Systems  declared its consolidated dollar revenues grew 4.2 percent sequentially to USD 79.5 million -- a growth of 13.7 percent year-on-year, filings to the exchanges showed today. The revenue number was in line with a CNBC-TV18 poll that had forecast USD 80 million.

In rupee terms, revenues grew 6.6 percent QoQ (and 14.3 percent YoY) to Rs 494.63 crore.

At the operating level, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 99.5 crore, a 4 percent QoQ rise (margin at 20.1 percent). This was lower than the Rs 117.1 crore expected by analysts.

While net profit stood at Rs 74.4 crore, 4.4 percent higher, compared to a forecast of Rs 78.3 crore.

"Technology and innovation continue to be at the center of our strategy to focus on the 'How' of digital transformation," CMD Anand Deshpande said. "During the quarter, we strengthened our leadership team to drive this technology-led strategy along with forming new partnerships and enhancing how we train our employees on the technologies that drive digital transformation."

The board had proposed a 1:1 stock bonus, Persistent said, while also declaring a Rs 10 per share interim dividend .

"2015 is an important year for the company as we celebrate our 25th year. We propose to celebrate the year with multiple different activities that are being planned," Deshpande said.


20.07 | 0 komentar | Read More

Twitter acquires ZipDial for an undisclosed amount

Microblogging website Twitter was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

Microblogging website Twitter  was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.


20.07 | 0 komentar | Read More

Newcastle's ambush marketing attempt

Americas most watched TV when the Super Bowl will play out on 2nd February and while the world's biggest brands make a beeline to associate themselves wit the 49th edition. Heineken Newcastle Brown Ale has released a teaser for its non super bowl add. We think this low cost high impact ambush marketing attempt is pot on.

Americas most watched TV when the Super Bowl will play out on February 2 and while the world's biggest brands make a beeline to associate themselves wit the 49th edition. Heineken Newcastle Brown Ale has released a teaser for its non super bowl add. We think this low cost high impact ambush marketing attempt is pot on.


20.07 | 0 komentar | Read More

Indian biz fantastic; one of APAC's pillar: DHL

The e-commerce boom in India has led to logistic companies making significant changes in their business models.Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the wordl's largest logistics company is coping with that change.

The e-commerce boom in India has led to logistic companies making significant changes in their business models. Apart from additional business, the largely B2B service providers now find themselves increasingly dealing with consumers and tackling issues faced by B2C companies. Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the world's largest logistics company is coping with that change.

Watch videos for more.


20.07 | 0 komentar | Read More

Newcastle's ambush marketing attempt

Written By Unknown on Sabtu, 24 Januari 2015 | 20.07

Americas most watched TV when the Super Bowl will play out on 2nd February and while the world's biggest brands make a beeline to associate themselves wit the 49th edition. Heineken Newcastle Brown Ale has released a teaser for its non super bowl add. We think this low cost high impact ambush marketing attempt is pot on.

Americas most watched TV when the Super Bowl will play out on February 2 and while the world's biggest brands make a beeline to associate themselves wit the 49th edition. Heineken Newcastle Brown Ale has released a teaser for its non super bowl add. We think this low cost high impact ambush marketing attempt is pot on.


20.07 | 0 komentar | Read More

Persistent $ revenue up 4.2% QoQ to $79.5mn, declares bonus

Mid-tier IT firm Persistent Systems declared its consolidated dollar revenues grew 4.2 percent sequentially to USD 79.5 million -- a growth of 13.7 percent year-on-year.

Moneycontrol Bureau

Mid-tier IT firm Persistent Systems  declared its consolidated dollar revenues grew 4.2 percent sequentially to USD 79.5 million -- a growth of 13.7 percent year-on-year, filings to the exchanges showed today. The revenue number was in line with a CNBC-TV18 poll that had forecast USD 80 million.

In rupee terms, revenues grew 6.6 percent QoQ (and 14.3 percent YoY) to Rs 494.63 crore.

At the operating level, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 99.5 crore, a 4 percent QoQ rise (margin at 20.1 percent). This was lower than the Rs 117.1 crore expected by analysts.

While net profit stood at Rs 74.4 crore, 4.4 percent higher, compared to a forecast of Rs 78.3 crore.

"Technology and innovation continue to be at the center of our strategy to focus on the 'How' of digital transformation," CMD Anand Deshpande said. "During the quarter, we strengthened our leadership team to drive this technology-led strategy along with forming new partnerships and enhancing how we train our employees on the technologies that drive digital transformation."

The board had proposed a 1:1 stock bonus, Persistent said, while also declaring a Rs 10 per share interim dividend .

"2015 is an important year for the company as we celebrate our 25th year. We propose to celebrate the year with multiple different activities that are being planned," Deshpande said.


20.07 | 0 komentar | Read More

Twitter acquires ZipDial for an undisclosed amount

Microblogging website Twitter was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

Microblogging website Twitter  was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.


20.07 | 0 komentar | Read More

Indian biz fantastic; one of APAC's pillar: DHL

The e-commerce boom in India has led to logistic companies making significant changes in their business models.Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the wordl's largest logistics company is coping with that change.

The e-commerce boom in India has led to logistic companies making significant changes in their business models. Apart from additional business, the largely B2B service providers now find themselves increasingly dealing with consumers and tackling issues faced by B2C companies. Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the world's largest logistics company is coping with that change.

Watch videos for more.


20.07 | 0 komentar | Read More

Forex reserves hit all-time high at $322.14 bn: RBI

Written By Unknown on Jumat, 23 Januari 2015 | 20.07

India's foreign exchange reserves jumped by a massive USD 2.66 billion to touch all-time high of USD 322.135 billion in the week ended January 16, on account of surge in foreign currency assets, RBI said today.

India's foreign exchange reserves jumped by a massive USD 2.66 billion to touch all-time high of USD 322.135 billion in the week ended January 16, on account of surge in foreign currency assets, Reserve Bank of India (RBI) said today. The reserves had surged by USD 236.4 million to USD 319.475 billion in the previous week. The previous life-time high for the reserves was USD 320.79 billion, way back in the week to September 2, 2011.

The foreign currency assets (FCAs), a major constituent of overall reserves, jumped USD 2.685 billion to USD 297.53 billion in the reporting week, as per the Reserve Bank data. FCAs, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and yen, held in reserves. The country's gold reserves remained unchanged at USD 19.377 billion.

Special drawing rights (SDR) decreased by USD 19.3 million to USD 4.109 billion, while India's reserve position with the IMF dipped by USD 5.2 million to USD 1.118 billion during the week, the data showed.


20.07 | 0 komentar | Read More

Weekly wrap: ECB fuels Sensex, Nifty to record levels

18:00

Moneycontrol Bureau  Market continued to tread on its road to riches with Sensex and Nifty logging seven days of unbroken winning streak on Friday. From last week, Nifty rallied 332 points to close at 8,836 and Sensex added 1167 points to close at 29,279 levels, Nifty closed at record levels yet again on Friday.

The 3.8-4.1 percent run-up in benchmark indices beat broader markets' performance majorly. For the week, CNX small-cap and mid-cap indices rose 0.5-1.3 percent higher. 

Gains in bank, infrastructure, capital goods, metal, automotive and pharmaceutical stocks were the top gaining sectors this week. Among top Nifty gainers: Cairn India, DLF, Bharti Airtel, Tata Motors, Axis Bank, Sun Pharma, Wipro and HDFC moved rose between 7-12 percent. 

Bank Nifty has rallied massively in past sessions and continues to trade at record levels on hopes of an economic revival led by potential rate cuts ahead.

Bank Nifty index which tracks stocks of all major banks has surged more than 79 percent in one year and almost 8 percent in the last month. During the week Axis Bank, HDFC Bank, ICICI Bank and Yes Bank touched their 52 week high levels.

After RBI's 25 bps repo rate cut boost last week, the European Central Bank's announcement of a Eu 1.1 trillion stimulus to stave off deflation and to boost inflation to 2 percent levels, fuelled benchmark indices back home to record highs.

BoAML in a report on Friday said that the ECB move should support equity portfolio inflows to India in FY16 which, in turn, likely to somewhat offset US Fed rate tightening. Equity strategist Jyotivardhan Jaipuria expects Sensex to hit 33,000 by December 2015

Foreign inflows have returned with a bang after dipping in early January on hope of economic revival on back of potential rate cuts. FIIs inflows invested nearly USD 1.6bn in the last six trading sessions, reported CNBC-TV18's Nimesh Shah. He said many global funds are increasing weight on India.

CLSA's Chris Woods is particularly exuberant on Indian stock market. "Indeed it (India) remains Greed & fear's favourite equity story globally so long as the hyper energetic and hyper focused Narendra Modi remains at the helm. Still the Indian equity market got another boost last week with the Indian currency's appreciation following the first rate cut by the Reserve Bank of India since May 2013," said Woods in his report –Greed & Fear.

Brian Jacobsen, Chief portfolio strategist at Wells Fargo Funds Management while in a conversation with CNBC-TV18 said India is a tremendous place for global investors to be in 2014 and the same trend is likely to be seen in 2015.

What's Next?

It's a truncated week ahead as Indian market will be shut for Republic Day celebrations on Monday.

Globally, investors will closely watch Greece elections on Sunday. The snap election set to happen on January 25 will be crucial amidst fears of Greece exiting from EU.

Among crucial earnings next week, Maruti, Idea Cellular and Ranbaxy will take the centerstage to announce their numbers for the quarter ended December 31.


20.07 | 0 komentar | Read More

Persistent Systems Q3 profit seen up 10% to Rs 78 cr: Poll

Persistent Systems' third quarter profit after tax is expected to increase 9.8 percent sequentially to Rs 78.3 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Persistent Systems ' third quarter profit after tax is expected to increase 9.8 percent sequentially to Rs 78.3 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Revenue of the software services provider is seen going up 6.8 percent quarter-on-quarter to Rs 496 crore and dollar revenue may jump 4.8 percent to USD 80 million in the quarter ended December 2014, led by services segment.

Operating profit is likely to surge 22.5 percent to Rs 117.1 crore and margin may expand 300 points to 23.6 percent during the same period on sequential basis. The margin expansion may be on the back of a pick of growth, improvement in utilisation and rupee depreciation.

PAT growth may be impacted by lower other income and also there could be a forex loss during the quarter (compared to forex gain of Rs 15.5 crore in Q2FY15).

Analysts believe the company is expected to be beneficiary of the digital wave as the stock rallied 86 percent in last one year, outperforming the IT index.


20.07 | 0 komentar | Read More

Need change in 5/20 rule, says AirAsia's Tony Fernandes

CNBC-TV18's Menaka Doshi caught up with Tony Fernandes, CEO of AirAsia Group at the World Economic Forum Davos 2015 and asked him about the airline's experience in India so far.

CNBC-TV18's Menaka Doshi caught up with Tony Fernandes, CEO of AirAsia Group at the World Economic Forum Davos 2015 and asked him about the airline's experience in India so far.

Tony Fernandes, CEO, AirAsia Group

We have had a good start, we have never experienced this anywhere in the world, we have had such opposition to us which still continues. However, credit to government, credit to the authorities we got licences, we started. We even had one of our rivals send a note to say, how great our staff was and how he enjoyed flying on us which was great. We are still waiting for certain things to change; 5/20 rule etc. I read somewhere that the other airlines are opposing it, which I find a little bit disappointing because I have never felt that any where else in the world. For India to progress, it has going to have to change its mindset.


20.07 | 0 komentar | Read More

Zee Media posts Q3 net loss at Rs 10.4 cr

Written By Unknown on Kamis, 22 Januari 2015 | 20.07

The company's total income was up 52.6 percent at Rs 140 crore against Rs 91.7 crore.

Zee Media Corporation  has posted consolidated net loss of Rs 10.4 crore in its Q3FY15 versus profit of Rs 6 crore, in the same quarter last year.

The company's total income was up 52.6 percent at Rs 140 crore against Rs 91.7 crore on year-on-year basis.

The EBITDA increased 17.3 percent to Rs 17 crore versus Rs 14 crore while operating margin of the company was down 360 basis points at 12 percent versus 15.6 percent during the same period.

The advertisement revenue went up 63.1 percent at Rs 100.1 crore and subscription revenue was up 12.3 percent at Rs 30.3 crore, Y-o-Y.


20.07 | 0 komentar | Read More

International Paper turns corner, Q3 profit at Rs 1.2 cr

The company's total income was down 8.3 percent at Rs 277.4 crore versus Rs 302.6 crore.

International Paper APPM  has turned profitable in the third quarter with a net at Rs 1.2 crore against loss of Rs 7.9 crore, Y-o-Y.

However, the company's total income was down 8.3 percent at Rs 277.4 crore versus Rs 302.6 crore.

International Paper APPM ended at Rs 284.60, up Rs 9.75, or 3.55 percent on the BSE.


20.07 | 0 komentar | Read More

Phillips Carbon turns profitable, Q3 net at Rs 7 cr

The company's net sales were up 8.3 percent at Rs 606.6 crore versus Rs 560 crore, Y-o-Y.

Phillips Carbon  has turned profitable as the company has posted net profit in October-December quarter at Rs 7 crore against loss of Rs 15.5 crore, Y-o-Y.

The company's net sales were up 8.3 percent at Rs 606.6 crore versus Rs 560 crore, Y-o-Y.

Phillips Carbon Black closed at Rs 164.95, up Rs 2.85, or 1.76 percent. It has touched a 52-week high of Rs 170.90 on the BSE.


20.07 | 0 komentar | Read More

Govt's Jan Dhan Yojana extraordinary achievement

R Jagannathan
Firstpost.com

By any standard, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is an extraordinary achievement for the� Narendra Modi �government. In just over five months, the scheme has extended banking to almost every single household in the country – with the� new accounts adding up to nearly 116 million , and the government claiming that 209 million of the country's 210 million households are now covered by banking.

What then accounts for the gap of 94 million between the 210 million total households and the PMJDY's 116 million, which reportedly covers� 99.74 percent of the eligible households ?

The answer is simple: the rest are already covered. According to Reserve Bank of India (RBI) data, as at the end of March 2014, Indian commercial and rural banks had 243 million basic savings bank deposit accounts (BSBD) – 126 million through bank branches and the rest through business correspondents. Add 243 million to 116 million (359 million), the number credibly covers all households.

Even if you think some of the PMJDY accounts are fictitious or duplications and triplications (with the poor being enticed to open new accounts despite having one due to the offer of free personal accident insurance and life cover, apart from eligibility for overdrafts), this is quite simply a game-changer.

Reason: despite the huge cost of rollout, the subsidy savings that this will enable will probably pay for the costs. Savings could be over Rs 50,000 crore annually on the subsidy bill alone when these payments are routed through bank accounts, including the PMJDY. Banks can then earn more from the floats made possible.

Without a bank account, no subsidy reform is possible, for the key to monitoring the flow of money to the right pockets depends on authentication – which the PMJDY manages to do with a mix of Aadhaar-enabled IDs and/or other forms of authentication.

The problems with the scheme are obvious and short-term in nature: of the 116 million accounts, nearly 83 million have zero balance. In short, they are accounts with no possibility of a transaction till money flows to them.

This means financial inclusion will remain on paper till the percentage of zero balance accounts reduces steadily. Can this happen?

Under Modi, it is beginning to happen through the direct cash transfers scheme for government payments, including subsidies.

According to statistics now available, LPG subsidy payments – estimated currently in the range of Rs 25,000-30,000 crore annually – are getting routed compulsorily through bank accounts. Some 50 percent of the 16 crore LPG consumers are already linked through bank accounts, and by 1 April 100 percent coverage is expected.� The Economic Times �says that "the government has already disbursed Rs 6,688.98 crore to 8.03 crore LPG customers up to 14 January and the figure could go up to Rs 25,000-Rs 30,000 crore annually."

Once LPG is done, the next obvious target will be kerosene, where current subsidies could be in a similar range of Rs 25,000-30,000 crore.

The other big scheme to use bank accounts will be the Mahatma Gandhi Rural Employment Guarantee Scheme (NREGA), which has an outlay of Rs 33,000 crore annually. Some Rs 15,000 crore already flows through bank accounts. The PMJDY will gradually take the figure closer to 100 percent over the next year or two.

According to� BusinessLine , funds for three pension schemes (Rs 9,690 crore), 24 scholarship schemes (Rs 5,756 crore) and seven other schemes (Rs 2,583 crore) are also being routed through bank accounts.

The bid daddy of subsidy payments will obviously be food and fertiliser subsidies, which this year have outlays of Rs 1,15,000 crore and Rs 72,970 crore respectively. That's a massive flow of Rs 1,87,970 crore currently going to the Food Corporation of India. Nobody knows how much of the subsidised grain actually goes to the poor. PMJDY will ensure that it does, once food and fertiliser subsidies are also paid through banks instead of physically through shops.

Put these numbers together, and what you get is a huge potential flow of government subsidies in the range of nearly Rs 2,90,000 crore.

If even a third of this flows through the Jan Dhan accounts, that's a sizeable volume of nearly Rs 1,00,000 crore.

Compare that with the current balance of just Rs 9,218 crore in 116 million PMJDY accounts.

Looking at a two- of three-year timeframe, PMJDY – even assuming the huge costs of rollout – will probably pay for itself. Reason: elimination of subsidy leakages of even 20 percent of the total will yield savings of more than Rs 58,000 crore.

PMJDY is well worth it.

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


20.07 | 0 komentar | Read More

Praj Industries consolidated Dec '14 sales at Rs 219.34 crore

Written By Unknown on Rabu, 21 Januari 2015 | 20.07

Dec '14 Sep '14 Dec '13 Net Sales/Income from operations 219.34 265.04 269.10 Other Operating Income -- -- -- Total Income From Operations 219.34 265.04 269.10 EXPENDITURE Consumption of Raw Materials 100.74 138.65 131.81 Purchase of Traded Goods -- -- -- Increase/Decrease in Stocks 2.08 3.34 -1.16 Power & Fuel -- -- -- Employees Cost 32.39 35.20 32.10 Depreciation 9.68 9.01 6.72 Excise Duty -- -- -- Admin. And Selling Expenses -- -- -- R & D Expenses -- -- -- Provisions And Contingencies -- -- -- Exp. Capitalised -- -- -- Other Expenses 63.90 69.63 71.35 P/L Before Other Inc., Int., Excpt. Items & Tax 10.55 9.21 28.28 Other Income 5.12 9.86 5.78 P/L Before Int., Excpt. Items & Tax 15.67 19.07 34.06 Interest 0.69 0.66 0.45 P/L Before Exceptional Items & Tax 14.98 18.41 33.61 Exceptional Items -- -- -- P/L Before Tax 14.98 18.41 33.61 Tax 2.08 3.98 8.69 P/L After Tax from Ordinary Activities 12.90 14.43 24.92 Prior Year Adjustments -0.33 10.76 -- Extra Ordinary Items -- -- -- Net Profit/(Loss) For the Period 12.57 25.19 24.92 Minority Interest -0.27 -0.32 -0.65 Share Of P/L Of Associates -- -- -- Net P/L After M.I & Associates 12.30 24.87 24.27 Equity Share Capital 35.49 35.49 35.49 Reserves Excluding Revaluation Reserves -- -- -- Equity Dividend Rate (%) -- -- -- EPS Before Extra Ordinary Basic EPS 0.69 1.40 1.37 Diluted EPS 0.69 1.40 1.37 EPS After Extra Ordinary Basic EPS 0.69 1.40 1.37 Diluted EPS 0.69 1.40 1.37 Public Share Holding No Of Shares (Crores) 11.81 11.81 11.95 Share Holding (%) 66.53 66.53 67.35 Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of shares (Crores) -- -- -- - Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- - Per. of shares (as a % of the total Share Cap. of the company) -- -- -- b) Non-encumbered - Number of shares (Crores) 5.94 5.94 5.79 - Per. of shares (as a % of the total sh. of prom. and promoter group) 100.00 100.00 100.00 - Per. of shares (as a % of the total Share Cap. of the company) 33.47 33.47 32.65 Source : Dion Global Solutions Limited
20.07 | 0 komentar | Read More

Notes From Davos: An Economic Driver Called Modi

Anuj Puri
JLL India

On the first day here at the World Economic Forum at Davos, there is no getting around Narendra Modi. Every second conversation that I strike up or am engaged in seems to come back to India's enigmatic new Prime Minister. One of the many questions I'm asked about him is whether Modi's popularity and ability to inspire hope are based solely on his electoral promises, or is there real substance here?

By now, it is more than evident that Narendra Modi really means business, and that the new reforms he is introducing are turning out to be very favorable for the country's economy. The new attitude towards urbanization and growth that Modi brings in, and his vision of India competing with the world's super-powers, has received a lot of backing not only from Indians but also served to perk up interest from foreign companies eyeing Indian shores for their operations, as well as foreign investors.

Modi has already demonstrated in Gujarat what his pro-business, infrastructure and policy-driven approach can do for economic revival and growth. His image is of a determined change-bringer and vanquisher of the lassitude that defined the old guard is what was needed most when it comes to rebooting India's viability as a peer in the Global Economy.

Modi came at a time when the former UPA government's image was marred by corruption cases, scams and failure to rein in rampant inflation. Today, he has an unenviable and monumental task before him now while dealing with deeply entrenched challenges and scripting a new growth story for India. He faces many obstacles on the road to delivering on his vision.

On the road to turn the Indian economy around and bring the country back into the global sweepstakes, Modi has launched many new initiatives. One of the most talked-about was his reviving the 'smart cities' concept - which, though not new one in India, lacked the forward momentum that comes from focused policies and the requisite policy-level funding. With these now part of the Modi government's mandate, and with the awareness that has been created about smart cities, we are very likely to see smart cities becoming India's new standard for urbanization, rather than interesting novelties.

Information technology, which we all acknowledge as an important economic driver for India, has not leveraged optimally. It needs to move from being seen as a mere 'employment spinner' to becoming a medium for change. Modi has set his mind to make the IT sector a shining light for Brand India, and he is backing this vision massive funding, as well.

From what we have seen so far, 'Minimum Government, Maximum Governance' does not appear to be an empty election slogan. I believe that the direction that Modi's new reforms point towards a very favorable future for India. It is early days yet, and we should not expect overnight miracles; further major reforms that will potentially improve business sentiments in the Indian economy will necessarily have to happen more gradually. What is certain is that with a relentlessly pro-business government at the Centre, they will not have to wait too long in the wings anymore.

· Inflation
Inflation was a major hurdle for growth of the Indian economy. It not only affected consumer spending, borrowing cost and therefore sentiment but also the construction sector, which depends heavily on raw materials such as cement, steel, etc. Major supply-side constraints such as allocation of natural resources to core industries, and the need for improved infrastructure for easy transportation and simplified taxation for goods crossing state-borders, are key areas for the Modi government to focus on. These are among the primary reasons for India's high inflation ratings.

Inflation definitely needed to be reined in to promote growth. The level which the RBI perceives as comfortable for the Indian economy ranges between 4%-6% for WPI inflation. Currently, WPI is within controllable limits. However, if we take the real estate perspective, the costs for cement, bricks, steel and other raw materials continue to remain high. This has led to annual building construction costs inflation hovering around 17% year on year over the last four years.

A lot of this is due to constraints on the supply-side rather than merely price concerns. For instance, the cement industry is currently undergoing capacity underutilization, due to which fixed costs are proportionately higher. Also, transportation costs have increased significantly in the last one year, as the central government has gradually deregulated fuel prices.  

Both the RBI and the Modi government have shown great resolve to tackle the problem of inflation and its correlation with the generalized borrowing cost in the economy. We have already seen inflation coming down drastically, although this wild horse needs expert monitoring beyond the feigning scope of the fiscal authority. With PM Modi expressing his desire to give the RBI Chairman Dr. Rajan a hindrance-free monetary policy regime, he has not only displayed professionalism but also put to rest criticisms that the new Indian PM wants the first control on every policy tool.

· GST (Goods & Sales Tax)
India's complex tax structure renders doing business on a pan-India level difficult. This has been repeatedly highlighted in annual surveys conducted by the World Bank. Single-window clearance for real estate projects is vital to save time, effort and the costs involved in obtaining permissions from various related departments. The introduction of a uniform tax structure for all states is equally critical, particularly to boost the manufacturing, warehousing and logistics industries that is likely to become major occupiers of real estate over the coming decade.

The problem with introducing Central GST (Goods & Sales Tax) lies primarily in convincing the various state authorities, since several states feel that their financial autonomy will be threatened if revenues are collected and distributed by the Centre. Will Modi be able to cut through this Gordian knot? The industry certainly hopes so. Meanwhile, Modi has his work cut out for him in other respects, as well.  

· LARR (Land Acquisition, Rehabilitation and Resettlement) Act
Land-related bureaucracy is high in India, and it acts as a deterrent for investors to operate in the Indian real estate and infrastructure space. The economy is desperate to get past this hurdle, as it needs support from infrastructure development for further growth - and infrastructure is highly land-centric. While the modified LARR (Land Acquisition, Rehabilitation and Resettlement) Act which was put into effect last year by the UPA government has attempted to reduce the bureaucracy involved, there is a current and very pressing need to revisit this Act. Provisions in the bill such as the significant rise in compensation to original inhabitants, the tedious rehabilitation clauses and other norms need to be relaxed if it is to serve its purpose of untangling.  

The critical nature of this bill is undeniable, and the Modi government has realized this. His government has even risked taking the ordinance route to pass the crucial amendments that will allow the act to contribute positively. Needless to say, these decisions will have political implications, and Modi's government will have to approach the issue not only with determination laced with a lot of caution.  

· Affordable Housing
Modi has made it clear that affordable housing is a focus area which he intends to promote as a priority sector. He is obviously aware that in order to do so, the sector will need to see much more incentives for developers as well as for banks. Modi's government has the right intentions, but it will be difficult to implement them unless the previously mentioned issues - namely inflation, implementation of GST and revision of the Land Acquisition, Rehabilitation and Resettlement Act are dealt with.

The Union Budget for FY2014-15 has already prioritized affordable housing by giving it a status equivalent of infrastructure. Subsequently, to make financing policies more pragmatic, the RBI raised the limit for individual loans for affordable housing from the previous INR 25 lakhs to INR 65 lakhs in metropolitan cities and INR 50 lakhs in other cities. There is no doubt that we are seeing a lot more policy-level will and impetus for affordable housing than witnessed in several preceding years.

At this juncture, the Indian government is sitting on a high fiscal deficit and therefore has limited resources to resort to public investment-led growth. In order to help India reach its economic potential and grow at a rate of 7% a year, the Government has to pull out all the stops in creating an enabling environment for private investors to step up investments. In fact, there is already a revival in sentiment among real estate stakeholders, so Modi is definitely on the right track.

· Investment Climate
There has been considerable sentiment traction on the introduction of REITs, which can enable small savings to be channelled into real estate for the first time. With REITs now finally part of the visible landscape rather than just a barely glimpsed mirage in the desert, a major concern of the industry with regards to creating large quantum of liquidity is getting resolved. REITs will render the entire real estate funding process more institutionalized, and therefore transparent. Some of the stringent measures proposed in the earlier version of REIT guidelines have been relaxed, with a view to making Indian REITs competitive globally.

We are now looking at a real possibility for Indian real estate attracting a sizeable amount of investments. While SEBI and the RBI would play an instrumental role in formulating the rules and policies governing REITs and FDI, it is the government which is empowered to fast-track the process by hard and determined action.  

Again, Modi and his overall vision and perception for growth will obviously play a leading role, and there is already sufficient evidence that he is taking it very seriously. His plan to construct 100 smart cities across various parts of the country and simultaneously relaxing FDI norms for investment in these cities will create ample investment opportunities, thereby also enabling uniform real estate growth across the nation.


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Capri Global consolidated Dec '14 sales at Rs 49.26 crore

Dec '14 Sep '14 Dec '13 Net Sales/Income from operations 44.43 50.77 38.79 Other Operating Income 4.83 5.37 8.73 Total Income From Operations 49.26 56.14 47.52 EXPENDITURE Consumption of Raw Materials -- -- -- Purchase of Traded Goods -- -- -- Increase/Decrease in Stocks -- -- -- Power & Fuel -- -- -- Employees Cost 6.57 6.05 6.28 Depreciation 1.01 1.07 0.92 Excise Duty -- -- -- Admin. And Selling Expenses -- -- -- R & D Expenses -- -- -- Provisions And Contingencies -- -- -- Exp. Capitalised -- -- -- Other Expenses 3.76 10.75 13.19 P/L Before Other Inc., Int., Excpt. Items & Tax 37.92 38.27 27.14 Other Income 1.24 0.30 3.22 P/L Before Int., Excpt. Items & Tax 39.16 38.56 30.35 Interest 1.60 0.74 0.35 P/L Before Exceptional Items & Tax 37.56 37.82 30.01 Exceptional Items -- -- -- P/L Before Tax 37.56 37.82 30.01 Tax 12.02 14.24 10.62 P/L After Tax from Ordinary Activities 25.54 23.58 19.38 Prior Year Adjustments -- -- -- Extra Ordinary Items -- -- -- Net Profit/(Loss) For the Period 25.54 23.58 19.38 Minority Interest -- -- -- Share Of P/L Of Associates -- -- -- Net P/L After M.I & Associates 25.54 23.58 19.38 Equity Share Capital 35.03 35.01 34.98 Reserves Excluding Revaluation Reserves -- -- -- Equity Dividend Rate (%) -- -- -- EPS Before Extra Ordinary Basic EPS 7.29 6.74 5.54 Diluted EPS 7.29 6.74 5.42 EPS After Extra Ordinary Basic EPS 7.29 6.74 5.54 Diluted EPS 7.29 6.74 5.42 Public Share Holding No Of Shares (Crores) 0.91 0.91 1.07 Share Holding (%) 26.08 26.04 30.66 Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of shares (Crores) -- -- -- - Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- - Per. of shares (as a % of the total Share Cap. of the company) -- -- -- b) Non-encumbered - Number of shares (Crores) 2.59 2.59 2.43 - Per. of shares (as a % of the total sh. of prom. and promoter group) 100.00 100.00 100.00 - Per. of shares (as a % of the total Share Cap. of the company) 73.92 73.96 69.34 Source : Dion Global Solutions Limited
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