Wednesday, October 21, 2009

POSER TO AMBANIS

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

IT HAPPENS ….. SOMETIMES

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

PREVENTIVE ACTION NEEDED

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

Tuesday, October 20, 2009

MOVE IN THE RIGHT DIRECTION

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

Sunday, October 18, 2009

WRONG ASSESSMENT

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

Friday, October 16, 2009

DOES IT MAKE ANY DIFFERENCE?

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

Thursday, October 15, 2009

TN GOVT SHOULD ACT TOUGH

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

WSATE OF MONEY

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

Wednesday, October 14, 2009

CHINA SHOULD MIND ITS OWN BUSINESS

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

Tuesday, October 13, 2009

SEVEN FINANCIAL WONDERS OF MODERN INDIA

1. M S SHOES SCAM.

2. HARSHAD MEHTHA'S MEGHA MARKET SCAM.

3. KETAN PAREKH STOCK MARKET MANIPULATION.

4.PENTA FOUR, DSQ GROUP OF COMPANIES SWINDLING THE PUBLIC MONEY.

5. C R B CAPITAL MARKETS ACT OF DEFRAUDING SMALL DEPOSITORS.

6. GLOBE TRUST BANK-THE ACT OF DISAPPEARING.

7. RAMALINGARAJU'S SATYAM SCAM.

BAD CORPORATE GOVERNANCE

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

Sunday, October 11, 2009

DIFFICULT ROAD AHEAD

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


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

Thursday, October 8, 2009

SHUN VIOLENCE

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

Wednesday, October 7, 2009

NATIONAL SHAME

APPEARED IN DNA ON 08-10-09 UNDER THE CAPTION SHABBY - TREATMENT

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

Tuesday, October 6, 2009

MAYA SHOULD DISPLAY SOME MATURITY

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

IPO WATCH: INDIA BULLS POWER LIMITED

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

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

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

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

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

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

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

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

Monday, October 5, 2009

FUND MANAGERS SHOULD TAKE CUE FROM OUR POLITICIANS

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

Friday, October 2, 2009

JAGAN WAS NEVER AT THE BUS STOP

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

UN WISE MOVE

The Brihanmumbai Electric Supply and Transport (BEST) move to name Bus stops to the highest bidder is an unwise move. (DNA 02-10-09) The roads, parks and other places, which frequently used by the public are to named with famous personalities who have scarified/contributed immensely to the society in their chosen field in recognition of their contribution. Any person who has ill gotten money will bid for the bus stops to be named after him/her and get un deserved recognition/attention. These persons even may try to shore up their credibility boasting that the BEST has named bus stops after them and take un due advantage in the society. The money BEST is expecting from such project is mere Rs 100 crore which is pittance compared to the annual revenue generated by the BEST. The move should be abandoned as it un wise.

Thursday, October 1, 2009

MNS WILL EMERGE STRONGER

Interesting analysis of forthcoming assembly election of Maharstra by R.Jaganathan. (DNA Tiger Tales - 01-10-09) Although the performance of the DF government is lack luster, these combinations, again may come back to power on TINA factor. The BJP in the state is rudderless, Shiv Sena is steadily losing grounds because of split and infighting. The so called Third Front is a non starter. The MNS is making strong in roads into erstwhile Sena bastons. The Center’s rural unemployment guarantee scheme, farmers’ loan waiver and other initiatives taken in the field of education, rural health services will fetch substantial votes to Congress-NCP combine. The young voters who constitute nearly 70% of the total voters are interested youth leadership. Here, the Congress (Rahul Gandhi) and MNS has the advantage compared to the other parties. In the changed scenario the MNS will emerge stronger and even may play the role of king maker in the unlikely event of a hung assembly.

Wednesday, September 30, 2009

GOVT. SHOULD REMAIN IN AVIATION BUSINESS

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

HERCULEAN TASK

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

Tuesday, September 29, 2009

ALL ABOUT RELATIONSHIP BANKING

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

Monday, September 28, 2009

LESS FII INVESTMENT IS BETTER FOR STOCK MARKET

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

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

MULTIPOLAR WORLD: BAISED VIEWS

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

HALF- BAKED MIND SET

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

Wednesday, September 23, 2009

FIGHTING CORRUPTION: WHO WILL BELL THE CAT

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

Saturday, September 19, 2009

IPO WATCH: THINKSOFT GLOBAL SERVICES LIMITED: OVER PRICED

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

Friday, September 18, 2009

IPO WATCH: EURO MULTI VISION LIMITED

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

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

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

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

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

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

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

DONOT MIX POLITICS AND RELIGION

The call by the Ganivarya Nai Padmasagarji Maharaj, the Jain Swamiji that the community should avoid rivals and vote in en masse in fauvor of Community candidate irrespective of party affiliation and candidates credentials was baffling.
Religion and politics should not be mixed and that too Sadhus should not seek vote on the basis of religion. Sadhus and Swamijis, irrespective of the community they belong are highly respected in our country. Swamijis and Sadhus have well defined roles to play for the welfare of all citizens irrespective of which community they represents. Of late religion and politics are inter-mixed and many religious heads are directly supporting consolidation of votes in fauvor of their community. This is a dangerous trend for country like ours. People should discourage this trend lest it may lead to creation of communal disharmony at a later stage. Suryodayasagar Suriswar Maharaj, a sadhu, has rightly commented that the party does not matter. One who favours non-violence and respects life will get their support.

Wednesday, September 16, 2009

DANGEROUS PROPOSITION

While speaking at Parsi cyclists club, the 75 year-old former India skipper expressed his displeasure in changed priorities of parsi youth and decline of ‘parsi’ cricket. (DNA 16-09-09 Nari rues decline of Parsi cricket).There is nothing like Paris cricket nor Hindu, Muslim cricket. In our country cricket has no religion. Promotion of sports in the name of religion is not good for a diverse country like ours.

Tuesday, September 15, 2009

LESSONS FROM LEHMAN: REGULATORY FAILURE

The article by John Reid, member of British parliament, on the failure of Lehman Brothers suggests that transparency is the answer if the world is to avoid shocks in the future. (DNA 15-09-09).Although non-transparency contributed for the collapse of the behemoth the lack of supervisory control from the regulators is the main cause for collapse of Lehman and other financial institutions in west and particularly in United States. It became the order of the day to blame the economic slow down and recession for bank failures. However a deeper analysis indicate that the economic slow down, depression, recession, inflation, growth, stagnation and deflation are all part of the business cycle that occurs at irregular intervals depending upon a multitude of factors including the various policies pursed by the governments and the world economy. This kind of situation had happened earlier and will happen in future also.

The present situation of a global economic crisis is itself triggered by the bank failures which are man made as a result of indiscretions of the US banking system and the lack of supervisory controls by the regulator, namely, Federal Reserve. Stringent regulatory measures and proactive supervisory review process, especially when the banks were following the economic capital model of BASEL II guidelines for maintaining capital adequacy has resulted in the crisis. It looks like the US has lot to learn from the Indian regulators, the Reserve Bank of India, who didn’t buckle down at any point of time, be it the dictates of the IMF or the developed economies. This is seen clearly by how India has at all times controlled its economy by avoiding such disaster, as compared to other Asian countries who had opened up their economies by allowing capital account convertibility , thus becoming sitting ducks to the vagaries and whims of the capitalists from developed economies. The cautious approach of the RBI and the watch dog attitude of this strong supervisor have kept Indian banks out of such disasters and the Fed has a lot to learn from its counter part in India how to supervise the banks in the changed circumstances.

VOTERS ARE NOT CONFUSED

APPEARED IN DNA NEWS PAPER, MUMBAI EDITION, 0N 16-09-09 - CAPTIONED AS VOTER KNOWS



The views expressed by Ms Ranjona Banerji (Second Serve DNA 15-09-09) that voters are confused to who to vote in the forthcoming Maharastra assembly scheduled in the month of Oct-09 was interesting. However, the days getting elected solely on the basis of caste, creed, religion and party are gone. We have seen that in the previous elections, be it to LS or state assembly elections. Mr. Modi in Gujarat, Mr. Chauvan in M P, Mr. Raman Singh in Chattis garh and YSR in AP have rode back to power because of their performance in their previous term in their respective states. The present day voters- nearly 70% of them are below the age of 35 years and are well informed about the development work undertaken by their elected representative. If the performance is good the representative has fair chance of making it again to the assembly. Voter has only one slogan perform or perish. So the writing on the wall is very clear for the sitting MLAs.

OTHER SCHOOLS SHOULD FOLLOW THE SUIT

The Dadar Parsi Colony school has voluntarily has reduced the tuition fees. (DNA 15-09-09) Education has become a very lucrative business right from pre-nursery to professional courses. We are a country in which more than 90% of the population is either poor or middle class who can't afford astronomical amount of fees and donation to get quality education. The government should enact laws in such a way that only the credible NGOs are permitted to run educational institution without any profit motive. Others schools in the city should reduce the fees and follow the good example set by the Parsi school.

Monday, September 14, 2009

AUSTERITY DRIVE:MORE ACTION NEEDED

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

AMEND SRA ACT

The state government using its discretionary powers under the Slums Rehabilitation Act, 1971 has allotted 140 acres of land in Santa Cruz and Khar area to New Delhi based Unitech group. For developing the slum colonies the developer will get 40 acres of land free which may fetch the developer few hundred crores. Development of slums under SRA has become a big real estate business, wherein the greedy developers are getting richer and richer. In this social cause of providing better living facilities to the down trodden, oppressed and not so fortunate citizens of the city, the rules are to be amended in such a way that only Credible/group of Credible NGOs are eligible for bidding, thus eliminating the profit and greed. The excess revenue generated in such schemes should be used for establishing good schools and hospitals in the same locality for the benefit of the same slum dwellers. Under no circumstances the land for slum development is given to greedy developers/land sharks. There are no dearth credible NGOs in the city of Mumbai.

MR.MUSHARAFF PLEASE COME CLEAN ON OTHER MATTERS

APPEARED IN DNA NEWS PAPER, MUMBAI EDITION,ON 15-09-09

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

Sunday, September 13, 2009

INFOSYS: IT IS TIME TO PAY BACK

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

THIRD FRONT LACKS CREDIBILITY

The recently formed Third Front (DNA 13-09-09) also called as Republican Left Democratic Front (RLDF) lacks credibility as an alternative to the Congress –NCP and Shiv Sena –BJP alliance. The conglomeration started with 23 parties is now down to 17 parties within a couple of days of its formation. Differences have already developed among the community leaders. Mr. T M Kamble and Mr. Prakash Ambedkar turning down the unity call given by Mr.Ramdas Athvale. The ideology of the parties differs on many issues. Their only aim is to garner as many assembly seats as possible, to play a king maker role in case of hung assembly. Their main constituent, the Left, has been rejected by the voters in the last Lok Sabha election in the states they are in power. Left ideology, progamme and policies are out dated. Voters will not buy their theory. JDS is non-existent in Maharastra. Mr. Ramdas Athvale says the Front will maintain equi- distance from the above referred Congress and BJP alliance. Will he sticks to his promise in case of a hung assembly and his Front getting good numbers? Million dollar question. Lastly, formation of political parties/group on the basis of caste,community and religion is dangerous for democracy.

Friday, September 11, 2009

ASKING FOR TROUBLE

This is with reference to the article ‘My Barber’s wisdom’ by Ramesh Ramanathan. Although the story was interesting, Mr. Ramanathan unintentionally has invited trouble for his barber by mentioning that the barber has spent whopping Rs 50.00 lacs for the marriage of his daughter. This may attract the attention of Income Tax authorities, who are always, look out for some clue/lead to unearth the black money. Next time when visits his barber he may proudly presents a copy of the article and although the barber who can not read will probably display the news paper cutting in his shop. But the uneducated chap will not know what is in the offing.