2 The Political Theatre

THE ECONOMIC TIMES | NEW DELHI | WEDNESDAY | 30 MAY 2012

Tough Decisions Unlikely at CWC

BHARTI JAIN
NEW DELHI

ongress president Sonia Gandhi has called a meeting of the partys highest decision-making body amid concerns , that the government may not follow up the recent petrol price hike with more corrective measures. The Congress Working Committee will meet after nearly a year on June 4, at a time when a section of the party as well as the coalition it leads are resisting the tough measures needed to tide over the economic crisis. Defence minister and core committee member AK Antony on Tuesday amplified this perception when he said the move to raise petrol prices was not a correct step. Speaking in Keralas Neyyattinkara, where an assembly bye-election is due, he said, oil companies should have shown some propriety. According to analysts, Antonys statement confirms that the government did not keep the party in the loop over the quantum and the timing of the petrol price hike. It al-

so belies the expectation that Pulok Chatterjees appointment as principal secretary to the prime minister would bridge the gap between the government and the party. The defence ministers statement came just a day after petroleum minister Jaipal Reddy dashed hopes that the government would reduce its ballooning fuel subsidy bill, as he ruled out a revision in the prices of diesel, kerosene and LPG. With Congress ministers clearly on the defensive since the petrol price hike, it is feared that the partys partners in the ruling coalition will be emboldened to block key economic decisions. The government may, therefore, be forced to keep on hold important reform measures such as foreign direct investment in multi-brand retail and opening up of the pension and insurance sectors. The CWC meeting is expected to provide a pointer to the direction that the Congressled government would take over key issues. If the party chooses the soft option of buckling under coalition pressures, the government may have to step up its focus on entitlement programmes at the cost of economic

SITTING PRETTY: Sonia Gandhi

reforms. A large section of the CWC is likely to point to the upcoming presidential poll and the electoral tests in BJP strongholds of Gujarat and Himachal Pradesh later this year to argue against tough measures that

could derail the coalition at the Centre. With price rise seen as a major factor behind Congress debacle in the recent assembly polls in Uttar Pradesh, Goa and Punjab, besides the municipal polls in Delhi and Mumbai, CWC members are expected to demand steps to soothe frayed nerves of the common man. The party may therefore, de, mand a cut in taxes and levies on petroleum in Congress-ruled states lessen the burden of the petrol price hike. According to a senior Congress leader, AK Antony report probing the reasons for the partys poor show in the assembly polls is unlikely to be placed before the CWC. The report has been submitted to the Congress president and it is entirely her prerogative to decide to act on the report, the leader said. The political impact of Congress rebel Jagan Reddys arrest in a disproportionate assets case is also likely to be discussed, especially in view of the impending bye-elections in the state. Only a decisive intervention by the Congress president at this stage can encourage the government to bring the economy back on the rails.

Mamata is Right in Celebrating Victory of Team Kolkata

Guest Column
segmentary as Ramanujan conceived it. It was in fact a plural unity of culture. Diversities demand complex unities, syncretic wholes which rose above endemic contradictions. Like cricket, Hinduism is a way of life and invites syncretism. It creates a rainbow collection of loyalties which is very different from loyalties of a uniform kind. It shows the universe of the fan beyond class or caste. Fans have a totemic relation to a team. Team Kolkata summons such a coalition of differences the more disparate the better. The Kolkata team is a mix of devotees. It has film stars as fans lined up to watch the final Juhi Chawla, Genelia and Ritesh Deshmukh, Sonali Bendre and Chunky Pandey. Team Kolkata creates a Calcutta which is richer than a Bengali Bengal. Calcutta was as much a home for Biharis, Punjabis, Oriyas as for the Bengalis. Look at it another way Shah. rukh, who has loved and lived in Mumbai, is often treated as an alien there; yet Calcutta gives him a hospitality that Mumbai could learn from. A Sourav Ganguly is open in a way Thackeray is not. Hospitality creates loyalties and defies logic in a way editorials cannot tolerate. Both CPM and Mamata join the party in a spirit that our grammarians cannot tolerate. Bengal has done today what India will do tomorrow creating a rainbow of loyalties. Where else will Mamata, Shahrukh, Bollywood, CPM, subaltern and diasporic all come together to create an alchemical marriage of devotees, fans, believers and loyalists? There is no hypocrisy or contradictions in this. Mamata can be as subaltern as she wants and can still love Bengal, Shahrukh and Cricket in this order. CPM can be as political as it likes and argue that cricket overcomes contradictions. To condemn this is silly Cricket sum. mons larger loyalties. Modernist logic like political correctness can be segmented and petty. Here Team Kolkata gives an important lesson. You can be Indian and still be a Bengali, a Mumbai man, a Marxist, Muslim, and love cricket. There is no segmentation here, just a celebration of all our diversities. Like cricket, patriotism is a theory of hospitality: celebrate this as a real victory and forget politically correct strictures which want logic, correctness and segmentation. This is the Indian way of thinking.
The author is a social science nomad

SHIV VISVANATHAN

Poli Buzz
Look Whos Grinning

Out-of-court Muslim Quota

When the Andhra Pradesh High Court struck down the 4.5% central sub-quota for minorities on Monday, it was not the rst time it did so. The court had thrice earlier rejected the sub-quota, which the Andhra government has been pushing at the state level since 2004. A look at the four attempts:

Attempt 1
July 7, 2004
TWO-MONTH-OLD YS Rajasekhara Reddy govt grants 5% reservation to Muslims in govt jobs and educational institutions, based on a report prepared by the Commissionerate of Minority Welfare.

Attempt 3
April 17, 2007
ANDHRA GOVT directs BC panel to specically identify socially & educationally backward groups among Muslims.

Decision challenged in AP High Court

May 18, 2007

STATE GOVERNMENT makes IAS ofcer PS Krishnan advisor, asks him to identify backwards among Muslims.

Sept 21, 2004

FIVE-JUDGE bench strikes down the government order as

June 11, 2007

KRISHNAN SUBMITS his report, which is sent to the Commission

wholly unconstitutional.

ZAHID

THE COURT SAYS:

THE GOVERNMENT has decreed reservations for the entire Muslim community (which is not) a homogenous group; there are castelike stratications... The commissionerate acted in undue haste (and) the process was totally vitiated since it did not determine any specic criteria for the purposes of identifying Backward Classes (among Muslims).

The wrangling within the CPM Kerala unit may be embarrassing for the party, but polit bureau member Sitaram Yechury may have reason to not mind former CM VS Achuthanandans frequent diatribes. Thats because Yechury is believed to have favoured for long a reduced role for the secretary of the partys Kerala unit, Pinarayi Vijayan, who has the backing of the partys general secretary Prakash Karat.

No Jaya Ho Chorus in BJP

Not everybody in the Bharatiya Janata Party is thrilled at the prospect of film star-turnedpolitician Jaya Prada joining their ranks. A twotime member of the Lok Sabha from Rampur, Jaya Prada, recently met BJP president Nitin Gadkari, who is believed to be favourably inclined to her inclusion in the party. Mukhtar Abbas Naqvi, a vice-president of BJP, however, fears that he will have to look for another constituency if Jaya Prada joins the party and if he decides to contest the next Lok Sabha polls. A few other leaders in the party also appear uncomfortable with the chequered career of Jaya Prada, who was expelled along with Amar Singh from the Samajwadi Party, which she had joined after leaving the Telugu Desam Party.

THE COURT holds that the government can add/subtract a group from the backward classes list only after the case has been examined by the states Backward Classes Commission. This was not done. Earlier, the Anantaraman and the Murlidhara Rao commissions, which had examined the issue, concluded that as a class, Muslims are not socially and educationally backward

June 23-26, 2007

COMMISSION CONDUCTS own survey in just three days, covers just six districts.

July 2, 2007
COMMISSION SUBMITS its 204-page report

July 6, 2007
ORDINANCE ON 5% Muslims reservation

August 13, 2007

STATE PASSES Andhra Pradesh reservation in Favour of Socially and Educationally Backward Classes of Muslims Act, 2007. Act challenged once again. SEVEN-JUDGE AP HC bench strikes down Act as unsustainable

One of the classic sociological essays that everyone decries but secretly believes in is AK Ramanujans Is there an Indian Way of Thinking? The original text was dedicated to the poets father. The modernist in Ramanujan was intrigued that his father could simultaneously believe, practise and pursue astrology and astronomy . The latter saw no contradiction in it. The poet believed that this was possible because Indians love to compartmentalise. New thought does not replace the old, but it merely occupies a new niche. The Indian mind seems full of different ideas which cohabit happily but do , not converse with each other. Threatening this affable way was a western mode of correctness which affected many modernists and Marxists. They believed that religion and Marx could not coexist or that rationalism and religion could not be friends. Ideological divides were imposed where Marxists thought that Usha Uthup was a bourgeois habit. Earlier, beauty contests were met with similar public indifference. Legend has it that when Sushmita Sen won the Miss Universe contest, CPM and the Bengali upper class received the news with stoical indifference. Bourgeois was bourgeois be it Uthup or Sen, and like Kipling, they decided that never the twain shall meet. Fortunately Uthups affection, , exuberance and the power of music overcame CPMs contradictions. Uthup did more to make the CPM cosmopolitan than any bunch of newspaper editors. The Uthup question, however, haunts a universe of political correctness. We do not realise that culture as consumption overcomes the tension of culture as production. Music and cricket can create loyalties that no ideology can divide. Religion as practice did the same thing. During Durga Puja, it was endearing to see the sickle and hammer in Durgas hands. I want to emphasise that this is not contradictory as Marxist ideologists saw it, or

Attempt 2
November 18, 2004
AP GOVERNMENT approaches AP Backward Classes Commission

November 7, 2005
FIVE-JUDGE bench strikes down the Ordinance/Act as unconstitutonal and violative of Articles 15(4) and Article 16(4) of the Constitution. HC SAYS: The ordinance is religion specic. It imposes illegitimate, discriminatory and grossly burdensome impact on citizens, on those belonging to the existing notied Backward Classes and on those who are not members of Backward Classes, as well. The inference is therefore compelling that the entirety of the state action manifested in the provisions of the Ordinance, is a crude camouage to shield what is clearly a naked and exclusively religion-based programme of reservation in educational institutions and public employment. COURT ALSO faults the AP Backward Classes Commission, says report is a performance on command. The prior non-publication of criteria and data collected by the BC Commission renders the report illegal and contrary to its Act and principles of fairness

Says:

June 20, 2005

COMMISSION submits report.

ONE OF the grounds the Act classies beneciaries and nonbeneciaries is on the basis of religion, which is unconstitutional.

5%

Federal Front Hero Faces Revolt at Home

NAGESHWAR PATNAIK
BHUBANESWAR

AP GOVT issues ordinance reserving 5% jobs and seats in educational institutions for Muslims.

NOT ONLY unscrupulous persons embracing Islam would get the benet of reservations, but that would result in depletion of opportunities of enjoying reservations by those Muslim groups who are otherwise entitled to the benet of reservation in pursuance of the impugned enactment. ACT BASED exclusively on the faulty report of the BC Commission. Court nds that in many cases the Commission had not conducted any survey at all. It merely quoted an Anthropological Survey of India study and the Krishnan report.

Centre Set to Challenge HCs Quota Order

Its proportionate sub-quota for Backward minorities identified by Mandal Commission, clarifies law minister Salman Khurshid
OUR POLITICAL BUREAU
NEW DELHI

ORDINANCE IS challenged. Case sub-judice, but ordinance replaced by an Act

Rebellion broke out in the Biju Janata Dal, with 27 MLAs and three ministers huddling against party president and chief minister Naveen Patnaik for his autocratic style of functioning. The rebels met at the residence of Rajya Sabha MP Pyarimohan Mohapatra in the state capital. Patnaik had recently sidelined Mohapatra, known as uncle in political circles. According to one of the MLAs who took part in the meeting, Mohapatras intention was to take stock of loyalist legislators, if he were to broker a deal with opposition parties to form an alternate government. However, according to another rebel MLA, Mohapatra would be satisfied if Patnaik ends his one-upmanship. This is the worst crisis for Patnaik since BJD came to power in 2000. The rebel meeting was held when Patnaik was in London to attract foreign investments to resource-rich Odisha. He is scheduled to return to the state on Friday BJD has 103 MLAs in the . assembly and the support of four National Congress Party MLAs in the 147-member assembly Forming an . alternate government is not an easy task to achieve if Mohapatra has the support of only 30 MLAs. The ministers who attended the meeting were food supplies and consumer welfare minister Sarada Nayak, women and child development minister Anjali Behera, transport minister Sanjib Sahoo. Deputy Speaker Sananda Marandi was also present in the meeting. Among prominent MLAs who turned up were Mukund Sodi, Bibhuti Balabanta Ray Su, sant Singh, Sanjib Pradhan, Srinath Soren, Manoranjan Sethi, Rajendra Sahoo, Bhagaban Kanhar, Sarojini Hemraum, Kamalakant Nayak, Jiban Pradip Das, Sudarsan Jena and Pravat Biswal. The MLAs refused to officially speak to the media on what transpired at the meeting.

Attempt 4
December 2011
Centre declares 4.5% minority quota in Central jobs & educational institutions, just days before the UP polls

Andhra govt appeals to the SC

May 28
AP HC strikes down the Central sub-quota for being purely based on religion

May 29
Centre decides to challenge order in Supreme Court

SC BENCH headed by the then CJI KG Balakrishnan refers case to a Constitution bench, stays HC judgment. SC says: As an interim measure, the 5% reservationshall continue(but) shall not be extended to Other Muslim groups. This is a temporary measure till the matter is decided.
AMRIT

Hand over Adarsh Land, it Belongs to Us: MoD

ROHIT CHANDAVARKAR
MUMBAI

Tiwari Gives Blood Sample

OUR POLITICAL BUREAU
NEW DELHI

The defence ministry has asked the Maharashtra government to hand over the land on which the Adarsh society building was located, claiming that it owned the land. The claim comes a month after a judicial commission investigating the Adarsh scam concluded that the land belonged to the Maharashtra government. Dismissing the findings of the commission, the defence ministry served a legal notice to the state government on Monday saying if the land was , not handed over within two months, it will file a civil suit against the Maharashtra government in the Supreme Court. The judicial commissions conclusion that the land belonged to the Maharashtra government was set to make the prosecution case weak. The biggest charge against the Adarsh scam accused was that they fraudulently transferred ownership of land from the defence ministry to state governments revenue department. MoDs claim over the land, hence, will be a shot in the arm for the prosecution in the Adarsh scam case. ET accessed a copy of the notice served by the defence ministry where the history of the ,

Adarsh land has been recounted. MoD has claimed that in 1796, the island of Colaba was claimed as military territory and civilians were forbidden from carrying out any kind of construction on the Colaba island without military permission. In 1821, an order by the Governor-General declared Colaba as a cantonment area. In MoD will file a 1911, the government reclaimed civil suit 1,145 acres. The notice then exagainst the plains how various committees Maharashtra government in appointed by the government opined that the entire island was the Supreme a military cantonment area. Court if the Taking advantage of the abland is not sence of the entries in the Milihanded over tary Land Register maintained within two by the defence estate office of months MoD and the absence of entries in the records maintained by the Government of Maharashtra (GoM), the promoters of Adarsh Society and several others, including top officials of the Army acting without authority orchestrated , correspondence and made admissions...that the property belonged to GoM, so as to deprive the Union of India of its lawful right, title and interest in the property ...MoD said.

Veteran Congress leader ND Tiwari gave his blood sample for DNA test in a paternity suit on Tuesday the deadline , set by the Supreme Court. He had been refusing to give the sample for months despite directions from courts. The sample, which took more than four hours to collect and seal, was later handed over to joint registrar of Delhi High Court R Gopalan. The paternity suit was filed by Rohit Shekhar in 2008 in Delhi High Court seeking its direction to declare Tiwari as his biological father. Shekhar and his mother Ujjawala Sharma were present when the blood sample was taken at Tiwari's residence in Dehra Dun. The Supreme Court had on May 24 rejected Tiwari's plea that he was too old to give blood sample. It does not mean that blood is not running in his body it said. ,

The Centre will challenge the Andhra Pradesh high court order striking down the 4.5% sub-quota for minorities in the Supreme Court. We will go to the Supreme Court by way of a Special Leave Petition against the Andhra Pradesh high court order, said law and minority affairs minister Salman Khurshid. The minister claimed that the high court order was not a political setback for the central government. On Monday, the Andhra Pradesh high court had struck down the central governments order creating a 4.5% sub-quota for minorities within the OBC quota, on the grounds that it was unconstitutional to provide reservations on religious grounds alone. The high court held that no evidence was shown to it to justify the classification of these religious minorities as a homogeneous group or as more backward deserving special treatment. The government would like to address the matter with a sense of urgency The attorney-general will . come only next week and we can take a call on how to go about it. We want to go as quickly as possible, Khurshid said. The law minister admitted that the court was correct in saying that a community cant be given reservation only on the basis of religion. But, this decision was not made on the basis of religion. We made the reservation within the quota for OBCs on the basis of proportion of population. Khurshid stressed that the government did not include any new caste from minorities in the OBC list but did it entirely on the basis of the Mandal Commission, which formed the basis of the 27% reservation for OBCs. Backward minorities have not got more than they are already allowed to get as per their population. 4.5% of reservation is only among those castes included in the OBC list from minorities. It is only their share in the 27% reservation,

COURT-BOUND: Salman Khurshid

Khurshid said. Khurshid also made the argument that while the Constitution states that religion cannot be the only criteria for giving reservation to a community, minority is not just a religion; it is also linguistic. The expression of the word minority is both religious and linguistic. The government had notified this sub-quota for minorities on the eve of the UP assembly elections; the move was seen as Congress effort to woo the states substantial Muslim population. Regarding the court's criticism that the government handled the issue casually Khurshid said it , was not clear whether the court was referring to policy aspect of the issue or the advocacy aspect. He said it was not the first time that the Andhra Pradesh high court had struck down such an order. This is the fourth time that the Andhra Pradesh high court quashed the state governments efforts to introduce a minority sub-quota. Addressing the question on the impact of the Andhra Pradesh high court order on students who are seeking admissions to IITs on the basis of the sub-quota, Khurshid said, I have spoken to the HRD minister (Kapil Sibal). He says that the selection to IITs is not completed. But those who secure admission in IITs can go to the Supreme Court. He said that the government will like to take up the matter as quickly as possible, to ensure that students are not affected.

WWW.ECONOMICTIMES.COM

Corporate 3

Short Takes
EIH Net Down 33% in Q4 at `45 Cr, FY12 Net Up 90% .
MUMBAI EIH Ltd, which runs hotels under the Oberoi and Trident brands, on Tuesday reported a 32.7% lower net profit for the fourth quarter at `45.13 crore as compared to `67.06 . . crore a year ago. Total income for the quarter . . was up 1.6% from `322.28 crore to `327.35 crore. Net profit for the fiscal year, however, grew 89.7% from `64.54 crore a year ago to . `122.42 crore, as the luxury hotel group bene. fited from the improvement in revenue per available room and reduction in interest costs. The companys consolidated net profit for the year grew from a net loss of `12.75 crore a . year ago to `122.55 crore. Total consolidated . income for the year grew 9.95% to `1,416.13 . crore from `1,288.04 crore last year. .

High Petrol Prices to Benefit Two-Wheeler Companies

With customers looking for cheaper mobility options, demand for two-wheelers is likely to go up
CHANCHAL PAL CHAUHAN
NEW DELHI

Fortis Healthcare Q4 Net Jumps 41% to `42 Crore .

NEW DELHI Fortis Healthcare reported a con-

solidated net profit of `42 crore for the quarter . ended March 2012, up 41% from the same quarter previous year. The Delhi-based companys . global sales also tripled to `1,279 crore during the quarter with its international business contributing about half of its total sales. The revenues of the two quarters are not comparable because this years quarterly number includes the groups international business that has been merged with the listed Indian company. . The companys share price closed at `103.35, up 2.02% to at the Bombay Stock Exchange.

Ipca Laboratories Posts Q4 Profit of `77 Crore .

MUMBAI Drug firm Ipca Laboratories on Tues. day reported a net profit of `76.61 crore for the fourth quarter ended March 31, 2012. The company had posted a net profit of `58.57 . crore for the quarter ended March 31, 2012, Ipca Laboratories said in a filing to the BSE. The net sales of the company stood at `553.11 . crore in the quarter under review. It stood at `473.78 crore in the same period of previous . fiscal. The financial figures of the current quarter and fiscal are not comparable with those of the previous financial year due to amalgamation of Tonira Pharma with the company with effect from April 1, 2011, it said.

he runaway petrol price, which has singed many has , found an unexpected beneficiary in the Indian auto market: motorcycles and scooters. With customers looking for cheaper mobility options over pricier cars following the steepest-ever jump in fuel prices last week, the demand for more affordable motorcycles and scooters is likely to go up in the coming months. Traditionally the demand for , two-wheelers has been stable in the Indian market, but a spike in fuel prices or interest rates always bring them into play in a much bigger way . With each jump in fuel price, the cost of running a car goes up tremendously Based on the changing . economic scenario, where inflation is already forcing people to curtail spending, customers look for cheaper transport options to manage their budgets, said a senior executive of Hero MotoCorp, Indias largest two-wheeler company . . Petrol now costs a record `73.18 a . litre in New Delhi and `78.57 a litre in Mumbai after Thursdays 11% . hike of `7.50 by oil companies. Demand for motorcycles as a

Racing Ahead
With customers looking for cheaper mobility options over pricier cars, the demand for twowheelers is likely to go up in the coming months The high interest rates, coupled with rising fuel prices and a jump in car prices, have knocked down car sales to decades lowest of 3.4% in April

11%

The growth in the twowheeler segment in April

The dwindling demand for cars is already forcing carmakers and its apex body to cut its fullyear growth forecast of

`73.18
a litre
Petrol price in Delhi

10-12%
for this fiscal

means for personal transportation has been strong in India. But in a grim economic scenario, where both vehicle and fuel prices are shooting up, customers fall back on cheaper mobility options like bikes and scooters. As the economy expands, everybody needs mobility and since they cant afford expensive transport, they stick to affordable options, said Sageraj Bariya, managing partner of Equitorials, an independent research firm.

Indias top-selling bike, the 100cc Hero Splendor, starts at an exshowroom price `42,950 in New . Delhi while the cheapest car in the country, Tatas Nano, is priced at `1,43,284, according to the compa. nies websites. Hero Pleasure . scooter sells for `41,700 in Delhi and Maruti Suzukis lowest-priced car, the M800, sells for about `2,04,902 (ex-showroom, Delhi). . It is clear that the difference in basic prices and the total cost of operating them has started influencing

demand patterns in the Indian market. Motorcycle manufacturers are gaining at the expense of car companies like Volkswagen, General Motors, Honda Siel, Tata Motors and Ford Motors, who have posted lower sales in the recent past as consumers are putting off their plans of buying new cars. The dwindling demand for cars is already forcing carmakers and its apex body, Society of Indian Automobile Manufacturers, to cut its full-year growth forecast of 10-12% for this fiscal. The high interest rates, coupled with rising fuel prices and a jump in car prices, have knocked down car sales to decades lowest of 3.4% in April while the two-wheeler segment grew at a fairly healthy pace of 11% in the same month. The impact becomes clear as demand for scooters has been consistent and strongest across all segments of passenger vehicles with a visible strong shift in urban centres. While customers were battling high interest rates in times of double-digit inflation, the steepestever increase in fuel price should spur demand for fuel-efficient scooters and bikes, said Atul Gupta, vice-president of Suzuki Motorcycle India Pvt Ltd.

Korij o Lorho Eatho

Air India Wont Take Dreamliners Until Compensation Fixed

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48% of Employers Struggle to Find the Right Candidates: Manpower Survey

Talent Shortage
Top skills that are hardest to find in 2012
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BANGALORE

SAIL Fourth Quarter Net Rises 3% to `1,577 Crore .

NEW DELHI Beating market expectations,

IT Staff

Engineers

Teachers

state-owned SAIL on Tuesday reported a growth of 3% in its standalone net profit to `1,576.98 crore for the quarter ended March . 31, 2012. Analysts were expecting a fall of 1630% in SAILs standalone net profit due to increase in input costs. The largest domestic steelmaker had reported a net profit of `1,530.61 crore in the corresponding quarter . of 2010-11. Net sales of the company was up . 12.17% to `15,079 crore during the reported . quarter as compared to `13,339 crore of during the same period last fiscal, it said in a filing to the BSE.

Marketing/ Public Relations/ Communications Staff

Secretaries, Office Support Staff & Admin Assistants

Insurance Staff

Finance Staff

Call Centre Operators

Sales Representative

Researchers (R&D)

Nearly half of Indias employers are struggling to fill critical positions because of a severe talent crunch, according to a study on talent shortage by staffing firm Manpower Group. Although the situation has improved over last year, 48% of employers in the country are facing hiring challenges this year as against the global average of 34%, the study said. Talent is particularly scarce in information technology marketing, public relations and , communications, and engineering, it said. Alarmingly employers are less concerned , about the impact talent shortage is having on clients and investors, with only 48% employers reporting talent shortages as opposed to 67% last year, said Sanjay Pandit, managing director at Manpower India. According to the study the shortage in , skilled workers is across the spectrumfrom personal assistants and call-centre operators, to researchers, engineers and accounting staff. The job categories of labourers and doctors, which were in demand last year, do not feature in this years list.

Owing to high growth in the IT sector and increase in the social media presence of organisations, there has been a surge in the demand for IT staff and marketing/communications staff, Pandit said. The study covered 1,500 employers in India, who were part of the 8,786 employers polled in the Asia Pacific region and 40,000 globally . Employers in Asia Pacific cited shortage of candidates, lack of technical skill, candidates refusal to relocate, poor image of the occupation, weak soft skills and demand for higher remuneration as reasons for trouble in filling jobs. Our social structure forces us to take up a job that pays better, has a growth path and is permanent in nature, said Kunal Banerji, CEO of executive search firm Absolute HR International. This is very different from the western concept where one works for six months and can afford to take a break and has no social stigma to his work, Banerji added. The Manpower study, however, said that regulatory reforms, government initiative to promote skills development, and a drop in demand from European markets have eased Indian employers struggle to get the right candidate.

The delivery of the much-awaited Dreamliner aircraft, the first of which was supposed to arrive in India this Tuesday, seems to have been further postponed as civil aviation minister Ajit Singh said Air India would not take the planes till the government decides on the monetary compensation Boeing owes the national carrier for a fouryear delay in delivery. We will not be in a position to take delivery of the aircraft as the compensation package for the delay in delivery of the plane has not been decided as of now, Singh said. The Air India board had on Monday held a detailed discussion on the issue of compensation, including the amount to be claimed and how and decided to forward the decision to the government for approval. When asked how long will Air India wait for the Dreamliners or Boeing 787 aircraft now, a senior Air India official said, It would depend now on how long the government takes to approve the compensation amount. Meanwhile, an official from the aviation The compensation ministry was of the view that the matter amount could should be resolved within two-four days. Delivery should be deferred only by a very vary from short period of time, may be two-four days, anywhere between $145 not more as the AI team is already in the US million and to conduct various pre-delivery checks, $800 million, he said. said a source The compensation amount could vary from without anywhere between $145 million and $800 mildivulging the lion, though sources refused to divulge the exact figure exact figure. The national carrier had placed an order to buy 27 B-787s and as per the original schedule, the US aircraft maker was to commence delivery of these aircraft from September 2008. Delivery of the Dreamliners was delayed due to various factors, including labour trouble in Boeing. Sources said the compensa] tion package Fora Fast Growing Railways pioved Company working for would not RAILWAY ELECTRIFICATION & BRIDGES, mean Boeing having large number of orders in hand, writing a for short &I or long term Financing cheque to Air India, but the the present & upcoming projects. most likely process, which is yet to be finalised, would be to adjust the DIRECT ENTRY TO WORK FOR RAILWAYS IN price with the AFORESAID AREAS , CAN ALSO BE FACILITATED. delivery of Interested padies, individual or cceporste may contact us on: each aircraft.

I IYA *1

+i 11 1I1 I ;

Jindal Stainless Q4 Net Dips 71% to `19 Crore .

NEW DELHI Bruised by a sharp increase in raw

raliwaysi Oyahoo .com

material prices that coincided with production capacity increasing, Jindal Stainless fourth quarter standalone profits fell 71% to `19 . crore compared to `66 crore for the same peri. od previous year. Net sales for the quarter ended March 2012, grew 25% to `2,154 crore from . `1,728 crore in the same period previous year. . For the year, Indias largest stainless steel . player reported a consolidated net loss of `104 crore for the year 2011-12, as against a profit . of `318 crore during the same period last year.

Day One is Key to Retention, Feel Cos

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Oi. .ARI MEiALS LIMI i ED

REUABLE SOURCE FOR :

A Clarification
In the article titled Ashok Leyland Fin Eyes PE Stake which appeared on ETs edition dated May 29, the name of the company is Hinduja Leyland Finance and not Ashok Leyland Finance. The error is regretted.

In the race to hire and retain good talent, companies are waking up to a niche area that can be a make-or-break tool for staff retention and satisfaction: The quality of welcome that a company provides to new recruits on their first day at work. A pleasing reception area and some smiling faces will be helpful, but companies are realising that there is more to the right welcome than that. And the challenging economic environment, which makes it important for companies to retain talent and prevent extra costs caused by attrition, has increased the need to provide the right welcome to new staff. Progressive companies are realising the importance of making Day One a memorable one for fresh recruits, at

whatever level. The manner in which a new employee goes through the initial formalities of joining a company and the first day at work is turning to be of strategic importance, said R Kannan, CEO of AssessPeople. It can be little things like being shown where the canteen is or how to get food coupons, but these make a big impact on a newcomer about the overall culture of a company These little things say how a . company actually connects with its people, and progressive companies will not mind sinking time and effort into these aspects, said Kannan. Handling new recruits is never easy these days, say HR professionals, and one of the reasons is that the younger recruits sometimes feel difficult to easily mesh with what Kannan calls the three other generations in the company .

These days there are four generations of staff in a company those who are below 25, those between 26 and 35, those in the 36-45 range and those above that. Opinion differs between all these categories on issues from whether or not to have a dress code to work-life balance. Therefore, any major slip on handling new recruits on Day One can be a big turn-off for the freshers concerned, said Kannan. Shobana Rajaseker, HR head Aparajitha Corporate Services, said companies are taking special care to ensure that new employees are given a comprehensive introduction and clarity on all routine processes as soon as they join. She said the importance of good induction has only increased, considering the aspect of deploying staff at the clients end in some sectors, and that induction practices are getting stronger in a broad range of sectors.

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6 Corporate
CABINET YET TO OKAY POLICY, WILL GIVE NOD ONLY AFTER MINISTRY ADDRESSES CONCERNS

THE ECONOMIC TIMES | NEW DELHI | WEDNESDAY | 30 MAY 2012

DoT Replies to Queries on NTP

Sends clarifications to seven ministries, which had opposed various proposals in the new telecom policy
JOJI THOMAS PHILIP
NEW DELHI

Call Waiting
DoT has reiterated to the department of economic affairs that the primary goal of the new framework would be to maximise public good it has also clarified that all future licences and spectrum would only be made available via market-related processes It has also said that it would seek fresh Cabinet approvals before implementing proposals in the new policy that have financial implications

he telecoms department (DoT) has shot off clarifications to seven ministries, which had opposed various proposals in the new telecom policy as , it attempts to get Cabinet approval for the revised rules that will replace the existing decade-old framework. It is learnt that the Union Cabinet did not approve the National Telecom Policy when it met last week as it wanted the communications ministry to address the concerns raised by different government departments on the new rules. The communications ministry has now moved a supplementary Cabinet note citing its response to the objections of each of the ministries, officials aware of the developments told ET. The DoT has reiterated to the department of economic affairs that the primary goal of the new framework would be to maximise public good by making available affordable, reliable and secure telecom and broadband services and added that direct revenue generalisation would continue to be a secondary objective. At the same time, it has also clarified that all future licences and spectrum would only be made available through market-related processes. It has also assured the department of economic affairs that it would seek fresh Cabinet approv-

als before implementing proposals in the new policy that have financial implications such as plans to offer domestic telecom equipment makers loans for five-year period on subsidised terms in addition to a 10-year income tax holiday and concessions on excise duty and VAT. The DoT has also agreed to seek separate approvals for other policy initiatives including the . proposal to set up a `10,000 crore . telecom R&D fund and a `3,000 crore mobile equipment manufacturing fund to support local hardware manufacturers. Apart from objecting to clauses in the policy that called for large financial outlays, the economic af-

fairs department had also opposed the new framework considering revenue generation as a secondary objective. The DoT has told the Commerce Ministry that its plans to give preferential access and tax cuts to indigenously manufactured telecoms equipment, and also mandate that mobile phone companies buy a bulk of the networks hardware from domestic companies, was only an extension of the Union Cabinets February 2012 decision to offer concessions to domestic IT and electronics manufacturers. The commerce ministry had opposed this on the grounds that it

was against the provisions of the Trade Related Investment Measures ( TRIMs) agreement under the , of which India is a signatory . The commerce ministry had also said that providing subsidies to use domestically manufactured equipment was against the principles of the Agreement of Subsidies and Countervailing Measures (ASCM). The DoT has approved and incorporated sector regulator Trais recommendations that mobile phone companies be mandated to source 80% of their network equipment and other related infrastructure from domestic manufacturers by 2020 into the new policy The pro. posed new rules also states that mobile phone companies that fail to secure network related hardware domestically will be subject to financial penalties equivalent to certain percent of their imports. In a bid to address the concerns of the department of financial services, the DoT has said that the new policy will give telecom an infrastructure status, even as it has deleted a clause that said that mobile phone companies would be eligible for financing from organizations like India Infrastructure Finance Company Ltd (IIFCL). The finance ministry had said that the Empowered Committee would take a final view on this issue and had sought that the specific reference to IIFCL be deleted from NTP-12. In a related development, the telecoms department has assured the

Information and Broadcasting (I&B) ministry that delinking licences from spectrum in the future would not apply to the broadcasting sector. It has further added that transport of triple play services voice, video and data though a telecom link did not imply unification of licencing. On convergence, where the proposed policy envisages to leverage Cable TV infrastructure for last mile wireline triple play services, the DoT has said that specific steps would be worked out later in consultation with the I&B ministry . The Information and Broadcasting (I&B) ministry had objected to the proposed new telecoms policy on two counts. It sought clarity of convergence of local TV networks post digitalization and argued that the plan to delink licenses from spectrum would have far reaching implications on its guidelines for uplinking and downlinking of TV channels and also the next phase of FM Radio permits auctions. License of 839 FM channels are to be awarded by way of ascending eauction process under FM PhaseIII. As per policy the successful bid, ders will automatically get the radio spectrum after issuing Letter of Intent by the I&B Ministry. The process of e-auction channels is already underway and the proposed provision would derail the entire process of e-auction and FM channels and create confusion amongst prospective bidders, the I&B ministry had said.

Falling HP Biz may Drag MphasiS Quarterly Earnings

INDU NANDAKUMAR
BANGALORE

JLR Drives Tata Motors Net up 136%

UK co posts 48.2% growth in volumes; contributes 95% of parents bottom line
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Troubled PC-maker HewlettPackard's business process outsourcing subsidiary in India, MphasiS, is expected to report another weak quarter earnings on Friday Continued weakness . in the work it gets from HP which contributes more than half of MphasiS's revenues is expected to continue to be a drag, especially with the large-scale layoffs recently announced at HP, which after a long period of management musical chair, is trying to find its feet again. It is unclear if HPs recent announcement about plans to lay off 27,000 employees by the end of fiscal 2014 will have a significant impact on MphasiS upcoming earnings. Analysts have projected a 1-2% growth in sales in dollar terms during the April quarter. The Bangalore-based company , once touted to be a strong contender in the mid-cap space, has been lagging its peers over the past few quarters. HP contributed 58% to MphasiS revenue in the previous quarter. During the three months to January 31, 2012, MphasiS saw revenues from HP fall 4%. MphasiS' performance largely depends on stability from its HP channel, said Manik Taneja, Emkay Global Financial Services. We will have to wait and see what impact non-HP business could have on the firm. Emkay estimates revenues to be at `1,365 crore, and net profit to be .

. at `186 crore. Dont expect any signs of revival from MphasiS during this quarter, a Mumbai-based analyst said, on conditions of anonymity The firm has been work. ing hard to keep its cost under control, so this should reflect in its margins. During the first quarter ended on January 31, 2012, MphasiS had reported 18% decline in its net profits at `185 crore versus `227 . . crore a year before. At least five brokerages ET spoke to said they expected a 50 basis point expansion in MphasiS The cos operating profit ability to margins because generate of continued cost non-HP reduction efforts business is by the firm. critical for What is going to offsetting be critical is the potential loss non-HP business of business that the company and pricing can generate and from HP if that can compensate any potential loss of business and pricing from HPs business. The management estimates that the channel will grow by 3-4% sequentially in dollar terms and this momentum will continue in the foreseeable future, SBICAP Securities analyst Dinesh Mehta and Ankit Pande wrote in a report in their latest client note on MphasiS. Out of the 28 new clients MphasiS won during the previous quarter, 18 came through the direct channel.

Powered by Jaguar LandRover, Tata Motors, Indias largest automaker reported a massive 136% surge in consolidated net profit to `6,234 crore, making up for a sub. dued performance by the auto giant in India. The net profit of Tata Motors more than doubled for fourth quarter ended March, driven by over 48.2% growth in Jaguar Land Rover volumes which contributed about 95% of profits of its Indian parent. The company revealed the net profit also included tax credit . of around `1,800 crore. During Q4 FY-12, we recognized GBP 217 million of deferred tax assets (additional GBP 171 million through re-

serves), on account of sustained improvement in business performance and certainty of future profitability outlook, said the results presentation on the website of Tata Motors JLRs parent, Tata Motors, could not keep pace with its standalone profits declining on account of sluggish market condition. The EBIDTA margins for Q4 declined marginally by 30 basis points to 14.3%, when the market expected a jump of over 100 basis points. One basis point is one hundredth of a percentage. The consolidated net revenues for the quarter jumped 44.3% at `50,908 crore largely driven by . JLR. The continued strong revenue and profit performance was helped by strong volume growth, improved product & market mix. China and developing markets showed strong demand but the situation in Europe and other developed markets remains under pressure, the company said. Thanks to the sustained demand, JLR plans to increase the capital expenditure for FY13 to 2 billion pounds from its earlier plan of in-

vesting 1.5 billion. This increased capex will go towards its investment in its Chinese JV with Cherry Automobile and a new engine plant in Wolverhampton. To meet rising demand and future product launches, the company has added 1,000 new employees at each of Halewood and Solihull plants, in addition to a third shift. JLR also apTata Motor's proved the consolistandalone dation of busiprofit after nesses of Jaguar tax for the Car Ltd & Land fourth Rover into one lequarter gal entity to be declined named Jaguar marginally Land Rover Ltd in by 1.4% to March 2012, this is `565 crore . likely to be effective from this fiscal. JLR registered net sales of 4.1 billion for Q4, which was up 51.5% from 2.73 billion it posted for the same period last fiscal and the operating profit jumped 61.5% to 605 million. While things look good on the JLR front, the pressure on the domestic market is continuing.

Tata Motor's standalone profit after tax for the fourth quarter de. clined marginally by 1.4% to `565 crore compared to `573 crore for . the same period last year, but for the full fiscal year FY-12, the net . profit declined 31.4% at `1,242.2 crore. An analyst who did not want to be quoted said: tough times in the domestic market will continue. Tata Motors will have to bring in newer products such as the Nano diesel to improve its volumes which are increasingly under pressure. There are hardly any positive triggers in the domestic market. Pressure on commercial vehicles will remain, since the cost of acquisition has gone up due to increase in excise duty and very high interest rates, the cost of operation has also gone up with the increase in road tax. And due to inflationary pressure, the freight rates are also under pressure, this all will put pressure on truck buying, the analyst added. On the truck front, the company is seeing demand pressure for some medium and heavy trucks, but a good monsoon and increase

Mistry Inducted on Tata Motors Board

Cyrus P Mistry, executive deputy chairman of Tata Sons, has been inducted to the Board of Tata Motors as a director, the company said in a statement on Tuesday. A director of Tata Sons since 2006, Mistry was appointed as deputy chairman of Tata Sons in November 2011. Apart from Tata Motors, Mistry also holds a director's position in Tata Industries, Tata Steel, Tata Power Company, Tata Teleservices and Tata Consultancy Services.

SCI Posts `428-cr Loss . on Fuel, Interest Costs

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spend in infrastructure with an expected moderation of interest rates, may result in demand picking up, the company in a statement said. Tata Motors consolidated reve. nue for FY-12 stood at `1,65,655 crore up 35.6% compared to `1,22,128 crore registered in FY-11. . And the consolidated net profit for FY-12 stood 45% higher than FY11, . at `13,517 crore.

Shipping Corporation of India (SCI) plunged into a massive loss for the year ended March 2012 as fuel and interest costs soared. Mumbai-based SCI posted a loss . of `428 crore compared with a net . profit of `567 crore in the year ago period. Bunker fuel costs more than doubled, while finance costs . rose as much as six times to `387 crore. SCI's total revenue for the year rose 13% to `4,308 crore. . The results are in sync with the trend globally Many of the ship. ping companies across the globe are posting losses. Going forward, we have restructured some of our liner services, but we are not very sure that the bulk market will improve. Tanker and offshore division should grow in the coming months, S Hajara, chairman, SCI told ET. SCI loss in

the Jan-March quarter alone was `355 crore. The companys reve. nue for the full year rose 13% to `4,308 crore. Shares of SCI rose . marginally to close at `55.65 in an . otherwise flat BSE ahead of the results. SCI had said that the company was looking to acquire around 62 vessels in the 11th plan period extending from 2007-2012 at an estimated cost of $5 billion, but a slow down in the global economy and excess supply of vessels forced it to nearly halve it to 36. The increase in crude oil prices over the last year led to a sharp hike in prices of bunker fuel, which is a type of fuel oil that is used in ships. Singapore's benchmark bunker price BK 380 rose to as much as $719 per tonne in May . Bunker fuel costs, on an average, form nearly one-third of the total operating costs for shipping companies.

Sun Pharmas Dilip Shanghvi Steps Down Rupee Fall Will Not Last Long: PM
PRESS TRUST OF INDIA
ON BOARD PMS AIRCRAFT | YANGON

Dismissing any comparison with the 1991 external debt crisis, Prime Minister Manmohan Singh on Tuesday said the fall of rupee is a matter of concern but was confident it will not last very long. He said the rupee depreciation was taking place against the backdrop of the global economic problems and the Euro zone debt crisis and expressed optimism that solutions will emerge at the G-20 Summit in Mexico next month. The sharp fall of rupee is a matter of concern. But I don't think we are anywhere near the 1991 situation. The fall of rupee is taking place against the backdrop of global economic problems and the Euro zone debt crisis. This is a phenomenon which is not going to last very long, he told reporters while returning after a three-day visit to Myanmar. After touching a record low of 56.38 to a dollar, the value of rupee has been fluctuating in the last few days. On Tuesday it closed at , 55.67. Since early March, the rupee has depreciated by over 10%. In 1991, India faced its worst external debt crisis and was forced to pledge gold abroad to redeem loans with the IMF. The Prime Minister, who will be attending the G-20 Summit next month, said global economic problems and the Euro zone crisis will be solved. In next month's G-20 meeting in Mexico, hopefully some credible solution will emerge, he said. The Prime Minister said the prevailing economic situation was hurting emerging economies like India and South Africa. Faced with roadblocks in pushing the reform agenda at home, the PM said that the path of economic liberalisation is contentious and rarely painless. Singh said that while pursing the economic reforms, special measures should be taken to help disadvantage people. The path of economic reform is often contentious and rarely painless. In the process of open-

Former Taro CEO Israel Markov to take over as chairman; Sun Founder to continue as MD
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CONFIDENT: Manmohan Singh

ing up, special measures need to be taken to help disadvantaged sections of society who are not yet empowered to benefit from the fruits of growth and globalisation, he said. Singh emphasised the need for economic development without threatening environment or the delicate ecological balance. At home, the Manmohan Singhled UPA government is up against the tough challenge of pushing the economic reforms agenda in the face of opposition from its key allies. The pending reforms include FDI in retail, deregulation of diesel and cooking gas prices, and taxation policy changes. Referring to bilateral economic ties, the Prime Minister said: Myanmar is a critical partner in India's 'Look East' policy and is perfectly situated to play the role of an economic bridge between India and China and between South and South-East Asia. Singh said India and Myanmar should work together to create a regional economy that can become a hub for trade, investment and communication in the region. Better communication is the best way of promoting economic integration and there is much we can do to revive and build arteries of communication, he added. Singh informed that Myanmar government has invited India to assist in the development of two areas contiguous to our border, namely the Naga Self Administered Zone of the Sagaing Region and the Chin State. We hope to implement small development projects that have been successful elsewhere.

Dilip Shanghvi, who has built Sun Pharma into Indias most valuable drugmaker in less than three decades, has stepped down as its chairman in favour of Israel Markov, the former CEO of Taro Pharma, in a move intended to reinforce the Mumbai-based companys trans-

formation into a generic drug-maker with global ambitions. Taro Pharmaceutical Industries, an Israeli drug-maker, was acquired by Sun Pharma in 2010 after a three-year battle between Sanghvi and Taros earlier owner, Barrie Levitt. The successful consummation of the take-over signalled Suns determination to emerge as a global player in the generic drug market. Markov, who headed Taro between 2002 and 2007, is the second professional with a global pedigree to join Sun. Shanghvi, who set up Sun Pharma in Kolkata in 1983 and who will continue as managing director, had hired Kalyan (Kal) Sundaram from GSK as the company's CEO in 2009.

On Tuesday Sun Pharma report, ed a 59% jump in its net sales at `2,329 crore as against `1,463 crore . . for the fourth quarter ended March 31 2012, backed by strong growth in the US market Move intended and an above avto reinforce the erage performcompanys ance from its Istransformation raeli subsidiary , into a generic Taro. drugmaker The company rewith global ported a consoliambitions. dated net profit of `820.21 crore compared to `442.75 . . crore for the same period of previous fiscal. For the year ended March 31, 2012, the company posted a net . profit of `2,587.25 crore compared to `1,816.06 crore in 2010-11. The brand.

ed generics business in India grew . by 14% this quarter at `695 crore. The company is clear that it wants to go global, it wants to build leadership which are global, and these appointments are also reflective of that thought, said Ajit Mahadevan Partner Life Sciences, E&Y. Sun Pharma has managed to turn around its Israeli subsidiary Taro's . FY 2011 net sales were $506 million, an increase of 29% over last year and a net profit of $183 million. However, the company waned that these numbers were not sustainable. The growth in sales and profit in the quarter was derived from price increase on select products in the US and may not be sustainable, said Sudhir Walia Whole time Director, Sun pharma in an

analyst call. Sun Pharma stock closed 0.7% down on the BSE on . Tuesday at `565.65. Sun also said it is still in the process of acquiring minority shares of Taro Pharma and said it remains interested in acquiring 100% of the company The minority sharehol. ders of Taro have demanded that Sun Pharma increase its offer price from the current $24 which the company is offering. Sun has given no indication of doing this. We are interested in acquiring 100% of the company through buying out the minority shareholders. Now there is a very rigidly followed process in the US and in Israel to protect the interest of the minority and that is something that we will follow fully said Shanghvi. ,

Galaxy S III Takes on iPhone, Escorts Shareholders OK Rejig Proposal to Hit Indian Stores Today
HITESH RAJ BHAGAT
NEW DELHI

Samsung launched its top-of-theline smartphone Galaxy S III in Europe on Tuesday hoping to do , even better than its previous model and take the game further away from Apple. Due to be launched in India on Wednesday the Galaxy S III has , garnered upwards of 9 million preorders worldwide (the iPhone 4S managed about 4 million), and this kind of pre-launch buzz was never seen from a non-Apple device. Whats even more interesting is that the Korean company is ready to take on Apple at its own game, including the hype that surrounds a launch. Having become the worlds largest mobile phone manufacturer (by unit sales) in April this year, Samsung is now ready to have another go at Apple, which is still by far the more profitable. Samsung plans to use Galaxy S III to win over customers from the iPhone camp. The S III whips the iPhone 4S on specs and may even have a leg-up on the yet to be launched iPhone 5. According to the Daily Mail, Trusted Reviews concluded the

S3 is light years ahead of Apples profitable darling. But Apple loyalists are quick to point out that its never been about the hardware specifications, but more about the experience and intuitiveness of the platform. While that may be true, it seems that Samsung is sparing no effort to improve its overall user experience as well. The Galaxy III provides a natural, ergonomic shape, a dazzling

4.8-inch super AMOLED screen and a great camera. It also brings some firsts into the smartphone arena: a screen that stays on as long as you keep looking at it, wireless charging, HD video playback in a small screen while you do other tasks and automatic calling of a contact when you hold it to your ear. The reviews and first impressions that are pouring in so far are quite ecstatic. CNET calls the Galaxy S III the Ferrari of android phones, one that's pretty much unrivalled in the speed and power stakes right now. Matt Warman, The Telegraphs (UK) consumer technology editor, praised the S III by calling it the first phone where he almost forgot that he was actually using a phone and not a full-fledged computer. Prominent gadget blog Engadget says that the power and storagehungry Android user simply cannot go wrong with this purchase. Slashgear calls the S III one of the best performing, most usable Android devices around, if not the best. On Wednesday well have , more details on the device, including the final price (expected to be . in the range of `36,000-38,000) and store availability.

One subsidiary and two affiliates to be merged with the tractor maker
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Shareholders of Escorts Ltd have approved a controversial restructuring proposal that envisages the merger of one subsidiary and two affiliates with the tractor maker, a Punjab and Haryana High Court-appointed committee said on Tuesday . The decision, taken at an extraordinary general meeting in Panchkula in Haryana on May 21, will help promoter Rajan Nanda and his family consolidate their control over the flagship firm to a little over 41%. The Nanda family owns 12.43% stake in the company The EGM was convened on the . orders of the court and it took the court-appointed committee a week to count all the votes. The proposal was ratified by the more than three-fourth of the

shareholders present in the meeting, Escorts executive vice-president and company secretary GB Mathur told ET. The three firms are wholly-owned subsidiary Escorts Construction Equipment Ltd (ECEL), and associate firms Escorts Finance Investments & Leasing Pvt Ltd (EFILL) and Escotrac Finance & Investments Pvt Ltd (Escotrac). Decision The three firms to help and the flagship promoter company have Rajan Nanda crossholdings. and his While Escorts family owns 49.81% in consolidate Escotrac and their control EFILL, the two over the companies own flagship firm 49.81% in each to a little other. Escotrac over 41% and EFILL own 12.83% and 6.5%, respectively in Escorts. Experts say ratification of the merger strengthens position of the Nanda family and puts at rest any hostile takeover moves by predators. There were reports over the past few months that an Indian business group with interests in automotives and software was eyeing Escorts.

Markets + Finance
Market Trends
Stock Indices
SENSEX NIFTY NIKKEI HANG SENG STRAIT TIMES 16438.58 4990.10 8657.08 19055.46 2801.85

Dollars in Mind, QFIs Get to Invest $1 b in Corp Bonds

ECONOMY 15

0.13% 0.09% 0.74% 1.35% 0.52%

Absolute Change

Global Giants Eye INGs Fund Business in India

S Koreas Mirae, Vanguard & US-based Pramerica seen in talks to buy Dutch firms business here
DIVYA RAJAGOPAL
MUMBAI

Heard on the Street

Aditya Birla Money Asks Non-performers to Leave

The broking industry is abuzz with talk that Aditya Birla Money, the broking outfit of Aditya Birla Financial Services, has asked several junior and mid-level executives to leave in the past few months. According to sources in broking circles, about 200 junior and mid-level executives mostly relationship managers have been asked to go though senior officials at Aditya Birla Financial Services denied this. Weve only done a normal process of removing nonperformers. But weve not thrown out 200 employees... That number is grossly incorrect, said a senior official of Aditya Birla Financial Services.
Contributed by Shailesh Menon

Currencies
US DOLLAR EURO 55.68 69.79

0.49 0.33

Oil
DUBAI CRUDE $ 104.70

0.05

Gold (. /10gm) `
GOLD SPOT: MUMBAI GOLD SPOT: DELHI 29235 29510

155 50

Bond Yields
10-Y GOI 8.52

0.01%

Tweet Bazaar
ET brings you select tweets from economists, policy makers, market experts et al on the unfolding events that move the world and markets

Robin Bew
Editorial Director, Economist Intelligence Unit

@ robinbew
Steady slide in euro should eventually offer some support to region, but not enough, or quickly enough, to make a difference Spain bond yields at danger levels. Gov says it doesnt need euro funded bank bailout. But is arguing for collectivisation of euro risks

hree global giants are interested in purchasing Dutch firm ING Asset Managements Indian mutual fund business, which may be carved out of the Asian operations and sold separately . South Koreas Mirae, Vanguard and US-based Pramerica have held talks with ING on the issue, people close to the transaction told ET. ING is selling its Asia-Pacific insurance and asset management businesses to help repay the assistance provided by the Dutch government in 2008 at the time of the global financial markets meltdown. The company is hoping to raise $7 billion. The Indian business is tiny compared with the Asian operations, . having assets of only `797 crore as of April this year and is barely profitable. A separate sale is likely to fetch only `40 crore, an industry official . estimated. ING and Mirae did not respond to the email query sent by ET. A Vanguard spokesperson said the news was not true. lot of players are below the A threshold of meaningful acquisitions, and lot of these companies might not add much value to those who acquire them, said Dhirendra

Kumar, founder and chief executive, Value Research. Mirae wants to expand in India by buying up smaller firms and had held talks in the past with funds such as Taurus. A purchase of ING will . add to Miraes meagre assets of `500 . crore and help it touch the `1,500crore mark. Vanguard, on the other hand, has been looking to enter India, and an acquisition will give the company a small but important base to start operations. The Indian mutual fund industry . manages asset worth `6.80 lakh crore, according to Sebi data. But growth in the past few years has been slow and anaemic, given extremely volatile market conditions, a slowing economy and a government paralysed by allegations of corruption and insipid leadership. The industry is highly fragmented with many players operating on wafer-thin margins. Only the top half-adozen funds manage to make money , and the exit of Fidelity has increased the clamour for consolidation in the industry The US giant sold its busi. ness in India to L&T Finance earlier this year, the second major exit after StanCharts sale to IDFC in 2009. Prospects of a revival hinge upon better sentiment and higher inflows. While the first depends upon govern-

Brokers Call

Weak Rupee not a Worry for JP

Foreign investment bank JP Morgan will hold a more positive view on the weak rupee instead of narrowly focusing on currency-led EPS gains. According to analysts at JP Morgan, weak rupee will allow companies to frontload their investments in improving their business models. Companies such as TCS and HCL Technologies are looking to bring their investments forward, whether into new markets, new delivery models, realising potential in emerging areas such as cloud, mobility, analytics and strengthening sales and marketing that fortify the medium-to-longer-term health of the companys business model.

ment, corporate and global developments, the second appears a much tougher proposition given the actions of institutional and retail investors. A recent McKinsey report says that retail investment inflows into mutual funds are just 57% of what they were during the pre-crisis period. Institutional inflows have also come down with the overall asset

under management stagnating at a 4% CAGR over the past three years. Mutual fund investment in India continues to be low across both retail and institutional segments. AUM as a percentage of GDP is pegged at 8%, compared with 79% in the US and 39% in Brazil.
divya.rajagopal@timesgroup.com

Morgan Stanley Upgrades RIL

Morgan Stanley has upgraded Reliance Industries from Underweight to Equalweight, maintaining its target price at `703 citing attractive valuations. The stock has . underperformed the market by about 10% since Reliance announced its share buy-back programme because of continued concerns about its E&P business and weaker outlook for refining and petrochemicals. The market is now already discounting most of the concerns about the stock, the Morgan Stanley report said. Absolute valuations are now attractive and, on a relative basis, the stock is trading in line with historical levels, suggesting limited downside, the report added.

Sensex Pares Intra-day Gains on Month-end Dollar Demand

Market Report
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Economonitor @economonitor
The simplest solution will be for Germany itself to leave the euro --P. Boone and S. Johnson

Bill Gross
MD, Pimco

@PIMCO
The grip of deleveraging resembles a boa constrictor. Slowly, slowly air is squeezed out of financial markets

Benchmark indices ended marginally higher on Tuesday giving up most of , their gains in the second half of the trading session, tracking the rupee, which ended lower because of the month-end dollar demand by importers and corporates. The Sensex closed up 0.13% at 16438.58 points, off the days high by 105 points, as the rupee shed 49 points to end at 55.67 versus the dollar. The Nifty ended up a

tenth of a percent at 4990.1. TCS, Maruti Suzuki, Coal India and Wipro were among the gainers, rising 1.4-2.72%, while losers included Cipla, Bharti Airtel, Sterlite and ITC. Markets are not yet out of the woods, said Sonam Udasi, research head, IDBI Capital. The hike in petrol prices was perceived as a reformist move but, going forward, if theres nothing more in terms of reforms we could see a 50-point swing either ways. Rajesh Baheti, MD, Crosseas Capital Services, said activity was being seen in out-of-the Nifty puts up to strikes of 4500 in June series which indicated people were buying cover against a possible fall to lower levels.

Barclays Overweight on CIL

Barclays has assigned an Overweight rating to Coal India on the back higher price realisations. Coal Indias fourth quarter results were significantly ahead of our estimates and the consensus forecasts. The key highlight was a sharp increase in realisations even after adjusting for `1,000 crore of incentives booked in fourth . quarter, said analysts at Barclays. The sharp spike in realisations was the result of several factors, including an increase in premiums for non-power volumes and possibly also on the back of the roll-over to a GCV-based pricing mechanism.

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Economy 15

Short Takes
Fin Bill Gets Prez Assent, Voda Notice May Follow Soon
NEW DELHI The Finance Bill 2012

Dollars in Mind, Finmin Lets QFIs Invest $1b in Corp Bonds

Finmin allows investment from residents of Gulf nations and drops 5-day investment window

has received presidential assent, clearing the way for the government to send a tax notice to Vodafone. President Praibha Patil gave her assent to the bill on Monday. The Bill was passed by the Lok Sabha on May 8 and the Rajya Sabha on May 16. It includes the controversial retrospective amendment to the income tax law that the government is likely to invoke to tax Vodafones acquisition of Hutch India. The retrospective amendment gives government the right to tax transfer of Indian assets even if the deal is entered into outside India.

Push Takeout Financing: Plan Panel to IIFCL

RBI should ease exposure, capital adequacy norms for infra lender, says commission
DHEERAJ TIWARI & DEVIKA BANERJI
NEW DELHI

Investment First
Who are qualified foreign investors (QFIs)?
A resident of a country that is a member of the Financial Action Task Force (FATF) or member of a group which, in turn, is member of this global body against money laundering and terror funding. Resident of a country signatory to International Organization of Securities Commissions (IOSCO) or has signed a bilateral agreement with Sebi.

OUR BUREAU
NEW DELHI

25 FDI Proposals Worth `2,973 crore Cleared .

NEW DELHI The government on

Tuesday said it has cleared 25 foreign direct investment (FDI) proposals, including that of AIF III of Mauritius and Microqual Techno of Mumbai, . worth `2,973.40 crore. The applications were cleared after recommendations of the Foreign Investment Promotion Board, headed by Economic Affairs Secretary R Gopalan, the Finance Ministry said. As per the ministry, application . of AIF III to bring in FDI worth `1,000 crore has been approved. The Mauritius-based firm proposes to induct foreign investment in the units of a fund constituted as a trust. Microqual Techno plans to increase foreign equity in its wireless telecommunications business. The . proposal is worth `522.90 crore. The proposal of Mauritius-based Mozart for infusion of foreign investment in an existing company in the pharmaceuticals sector has also been approved. The company has proposed to bring in `300 crore. .

Where can they invest?

QFIs are now allowed to invest in all the three important segments of capital market mutual funds, equities and corporate debt

Why has this been done?

Indias current account deficit is said to have widened to over 3.6% of GDP The capital flows needed to fill this current account gap have been muted With weak appetite for risky assets very low, the government is trying to spur debt flow

he government on Tuesday set a separate $1-billion corporate bond investment limit for individual foreign investors. It also allowed them to open rupee accounts and removed the restriction on the un-invested funds in a bid to boost capital inflows to bridge the current account deficit. The finance ministry also expanded the list of countries from which such investments will be permitted, hoping to entice investors with high yields available on Indian paper. A separate sub-limit of $1 billion has been created for QFI investment in corporate bonds and mutual fund debt schemes, Thomas Mathew, Joint Secretary (Capital Market Division), Ministry of Finance, said. FM Pranab Mukherjee had in the budget allowed qualified foreign investors, or QFIs, to invest in Indian corporate debt. The foreign investment limit in corporate debt, which will now increase by $1 billion to $21 billion, will boost debt inflows even as portfolio investments are likely to remain muted till there is uncertainty over the rupee. The finance ministry hopes to sell Indian bonds to investors in Bahrain, Oman, UAE, Kuwait, and Saudi Arabia in road shows beginning June 10. We are looking at 6-14 months to see the optimisation of QFI inflows, Mathew said.

The scheme was earlier open to only residents of countries that are members of Financial Action Task Force, or FATF, a global body to check money laundering and terror funding. The North Block has now relaxed the eligibility condition to allow investors from Gulf Cooperation Council (GCC) and also the European Commission to invest in Indian debt if they meet the local rules. Several enquiries were received from EC and GCC, requesting for inclusion of their residents as QFI, Mathew said. Such investors will investors will now be able to open nonnow be able interest bearing rupee to open accounts with authornon-interest ised banks in India for bearing Re accounts with remitting funds for inbanks in India vestments. At present, QFIs can invest only for remitting through a common funds for pooled account of their investments depository participant. The finance ministry has also decided to drop the five-day investment window. Currently if an investor is not able to de, ploy the funds brought in within five days then the balance has to be sent back to his home nation. This was a big dampener because of the high cost of funds transfer. The income tax department will issue the tax details separately The changes . will become operational once the RBI and Sebi issue relevant notifications within seven days.

RESPITE FOR TEXTILES SECTOR

Industrial Production may Rise to 6.9% in FY13: CMIE

MUMBAI Indias industrial produc-

FM Okays Resetting of `35k-cr Loans .

OUR BUREAU
NEW DELHI

tion is expected to accelerate to 6.9% in FY13, from 3.9% estimated for FY12, an economic think-tank said. The growth will pick up due to easing of supply constrains, particularly in the mining sector, and further acceleration in electricity generation, Centre for Monitoring Indian Economy said here. The performance of the manufacturing sector is also expected to improve in FY13, owing to an increase in the purchasing power of both the urban and the rural consumers, improvement in availability of raw materials and huge capacity additions, the CMIE report said. We expect the mining sector to stage a good recovery and pull up overall industrial production in FY13. Output in mined products is expected to grow by 5.5% in FY13, after falling 2% in the preceding year.

The debt-ridden textile sector can look forward to some relief as the government has allowed restruc. turing of `35,000-crore loans. Following a meeting with Finance Minister Pranab Mukherjee, Textiles Minister Anand Sharma said, The RBI will now be discussing the restructuring of loans. Sharma also discussed funding of export incentives that he proposes to announce in the annual Foreign Trade Policy on June 5. The meeting was also attended by commerce secretary and the director general of foreign trade. According to Sharma, the total . debt of the sector has risen to `1.5 . lakh crore, of which `35,000 crore needed immediate restructuring and the government would soon

direct the banks to do the same. An inter-ministerial committee would be set up soon to help fasttrack the restructuring. Further, it was decided that the restructuring package would be on a case-tocase basis and would be taken up by each bank separately . Though the industry demand . for restructuring `1-lakh-crore loans was not granted, still vari-

ous sector stakeholders, such as the Apparel Export Promotion Council, welcomed the move. This was much-needed and will help the industry to continue giving employment to over 11 million workers and to meet export target of $17,000 million set for 2012-13, said A Sakthivel, Chairman of AEPC. More changes could be on the anvil as the finance ministry and the RBI would be considering a 2-year moratorium on term loans, norms on non-performing assets and conversion of depleting working capital into working capital term loans repayable over 3-5 years. The sector has been hit badly by the global slump, a sharp fall in cotton yarn prices and rise in wages. Besides, textile units have been unable to repay their loans and arrange for working capital due to increases in bank interest rates.

ALL IS WELL

No Going Back on Cotton Exports

The government is unlikely to review its decision on allowing cotton exports as domestic prices have remained stable after the export ban was lifted last month and there is no apparent scarcity in the local markets. The group of ministers that lifted the export ban on April 30 was scheduled to meet in three weeks to reassess the situation.

The government's infrastructure financing arm, IIFCL, should shift its focus to credit enhancement and long-term lending to utilize its resources better instead of competing with banks, the Planning Commission has said. The apex planning body has also suggested that the Reserve Bank of Indias norms limiting exposure to a business group and to a single company should not apply to IIFCL as all lending done by it has implicit sovereign guarantee. Capital adequacy norms should also be relaxed, the plan panel has suggested. The commissions ideas were discussed at a meeting with finance ministry officials last Friday. Credit enhancement, essentially a guarantee given by IIFCL, enables insurance companies and pension funds to buy bonds issued by infrastructure companies as the guarantee leads to a higher credit rating for the tool. IIFCL has become just like any other lending agency It . needs to focus on long-term credit growth and takeout financing schemes, said a senior official in the Planning Commission. Takeout financing refers to practice of lenders to the initial stage of a project selling their loans to other financiers. Currently, IIFCL is not fulfilling the purpose for which it was set up, the official said. The commission's proposal, however, is likely to be opposed by the Finance Ministry that has questioned the feasibility of stopping all direct lending by IIFCL. As of now, we are trying to get a special status within the category of NBFC that carry out infrastructure financing. Let the pilot projects on credit enhan-

cement work. We will come out with a full-fledged scheme by December and then we can look at curtailing other portfolio, a finance ministry official said. An expert panel set up to estimate investment requirements for the infrastructure sector for the 12th plan period (201217) has raised doubts about availability of funds for the sector in the absence of efforts to promote takeout financing and develop the countrys lacklustre bond market. The commission has estimated an in. vestment deficit of `14.6 lakh crore over the next 5 years for the sector. While commercial banks had stepped up lending to the sector in the last 3 years, they will not be able to sustain the momentum, according to the panel, unless companies like IIFCL fill the void by providing capital for longer duration at lower interest rates. IIFCL Chairman SK Goel refused to comment on the planning commissions ideas but clarified that the company is focusing on takeout financing and instruments, such as taxable bonds, Finance to meet the fiMinistry has, nancing rehowever, quirements of questioned the feasibility instrastructure. of stopping We finance all direct mostly publiclending by private-partIIFCL nership, or PPP, projects that constitute 80% of the total lending. We cannot be the lead bank and our mandate is limited with focus towards road, power and transport sector, he said. The commission has also said that IIFCL should not offer loans below commercial rates for tenures similar to that of banks. There is need to deepen the bond market, raise capital from long-term tools for financing infrastructure. IIFCL needs to re-define itself if the funding needs of infrastructure have to be met, the Planning Commission official said. IIFCL is expected to play a major role in infrastructure finance, as the government has proposed a trillion dollar investment in infrastructure over the twelfth five year plan, beginning 2012.

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Money & Banking 17

Interview Panel of PSU Banks will Soon Have an External Member

Current Account
Retired CMDs and senior officials of staterun banks are a busy lot these days. Recently, the finance ministry has issued a circular to all PSU banks that the interview panel which selects officers for internal promotions should have one external member with experience in banking. The ministry has also directed banks to complete the promotions and transfers by June itself so that the officers can be transferred before the beginning of the academic year. As a result, a number of banks are conducting interviews and have invited retired senior officials as members on the panel.
DK MEHROTRA MOVES IN TO THE CHAIRMANS CABIN AT LIC

The Game of Cards is No Childs Play

After burning their fingers during the 2008 crisis, credit card issuers are not pushing to acquire market share, but are ensuring that customers spend more. Even as the customer has become smarter with repayments, this may be the beginning of another business cycle, say Anita Bhoir and Gayatri Nayak

Face Value

Last of the Mohicans: A Strategist at Heart

Stay Credit Worthy

Credit Card trends for Major issuers
April'11 Feb'12

No. of credit cards

Spends at POS (`million)

5,482.24 6,544.43 50,89,800 55,95,199 17,822.83 23,089.02 9,238.91 9,691.12 1,455.11 2,273.59 14,265.67 15,004.91 2,948.92 2,791.83 5,190.00 5,373.04

After having waited for more than a year, acting chairman DK Mehrotra has finally moved to the chairmans cabin at Life Insurance Corporation. The position is lying vacant for more than a year now. The government had appointed Rakesh Singh, additional secretary, member of finance, to head LIC in May first week, but later Mehrotra was given the charge. The wait for the cabin has come to an end. But when will the wait to be appointed chairman officially come to an end?
CYBER HACKERS TURN UP THE HEAT ON THE RESERVE BANK OF INDIA

HDFC Bank ICICI Bank Axis Bank Citibank HSBC Standard Chartered
POS: Point of Sales

MUGE YUZUAK, Managing Director and Country Head, Cards and Personal Loans, Citibank NA India

33,61,684 28,60,560 6,34,499 7,50,914 22,50,028 22,95,817 9,10,559 7,45,899 10,95,738 10,73,081
SOURCE RBI

Our tracking mechanisms have changed. We are leveraging SMS in a big way. If he is showing signs of delinquencies, we intensify our efforts
KADAMBI NARAHARI, CEO, SBI Cards

We selectively offer conversion to EMI for customers who are unable to make their payments on time as well as for high ticket purchases
SHYAMAL SAXENA, General Manager, Retail Banking Products, Standard Chartered Bank

Customers are now paying in full to avoid interest charges

UPNESH

JAIRAM SRIDHARAN, SVP & Head, Consumer Lending and Payments, Axis Bank

Cyber hackers got the better of the Reserve Bank of India website last Thursday when the central banks board members met in Mussoorie, and the rupee fell to its lowest to 56.38 per dollar. Investors, analysts and dealers who looked for more information on what the Board discussed were disappointed due to lack of access to the website. The governor had hinted at more measures being on the cards to minimise speculation and increase inflows. But the minutes could only be read the next day when the website was restored.
RUMOURS GALORE AS DEUTSCHE BANK HUNTS FOR GUNIT CHADHAS SUCCESSOR

Speculation about who would succeed Gunit Chadha at Deutsche Bank in India is getting intense. Insider Ravneet Gill head of corporate banking seems to be the top contender. But there are murmurs that two outsiders are also being considered for the post. One may be the golf-loving country head of a European bank and the other a deal-maker from an American bank. Theres also another rumour doing the rounds Anshu Jain, who is taking over as the co-CEO of Deutsche Bank may choose to send a German to get a first-hand experience of India.

Current Yield

More NRIs Park Their Funds Here

ankers are laying the trap, but consumers are not falling for it. The credit card economy and the behaviour of people have come a full circle in the past five years... from high defaults to smart use of plastic money. Smarter customers and cautious bankers are erasing the belief that credit cards are monsters akin to the olden-day money lenders who trapped families for years in debt with usurious interest rates. Nothing much has changed with the usurious interest rates on credit card outstandings, but the facilities to switch them to monthly payable loan installments at lower rates in many cases have made all the difference. This suits both the bankers and customers the defaults are low and there is little burden on the individual. Credit card transactions are in. ching towards the `1-lakh-crore . mark a year, up from around `60,000 crore in FY08. This may just be about 1% of the transactions done through cheques, but is still significant and will become a substantial part of overall transactions. In the process, leaders have become laggards and vice versa. Many have junked the business given the burden it brings, and many have adopted it hoping for brighter days. With the days of irresponsible lending behind us, most banks are giving credit limits more cautiously and thus ensuring that customers do not over extend themselves. In addition, with the higher adoption of technology we are increasingly us, ing e-statements, online banking and mobile banking to keep customers informed of their amount due and payment due date, said Shyamal Saxena, country manager, retail banking, Standard Chartered Bank. After burning their fingers during the 2008 crisis, credit card issuers are not pushing to acquire market share,

but are ensuring that customers spend more. Spending for the first . time was at `96,600 crore in fiscal 2012, through 320 million transac. tions, up from `57,850 crore, through 228 million transactions in fiscal 2008. Though high inflation played a role in value, it gladdens bankers in an economy where cash transactions are overwhelming. Online ticket bookings, be it for train travel, or air, have had an impact. Every year, the amount of spends on internet are increasing as e-commerce is picking up. Customers have many options to buy tickets from various travel portals, said Manish Sinha, head customer value management, HSBC India. Credit bureau As of end March is a recent 2012, there were 17.65 development million credit cards that has been circulating in the a boon for system, down from both banks & 27.55 million in fiscal customers. 2008 as multiple unBanks use it used cards gave way to check the to one of two wellcredit history used cards. An analof customers ysis of credit card data of seven major players in the market shows that while banks like ICICI Bank, SBI Cards, HSBC and StanChart have pruned their base, the others like HDFC Bank, Citi and Axis have been growing their credit card numbers. Many banks have cleaned up their books after bad loans burnt a hole in 2008. ICICI Bank, which was the largest credit card issuer in 2007, has surrendered the top slot to HDFC Bank, which has a base of 5.6 million. ICICI Bank cards are down to 2.86 million from around 8 million during the retail boom in 2007. This was a trying period for the industry when job losses led to defaults that rose to almost a quarter of the total card outstanding when for other

loans it was less than 5%. Many exited the business. Barclays and Deutsche Bank folded up the credit card business after bad loans created a crater in their books. In 2008-09, we needed to clean our book. Since the information from the credit bureau was not as dependable as it is today, we did not have a clear understanding on how exposed our customers were, said Muge Yuzuak, managing director and country head, cards and personal, Citibank India. In early 2010, we decided to grow our cards business responsibly. We defined our card value propositions around rewards, cashback and miles. Today, the CIBIL score plays a key role in deciding the credit line to be given to our customers, a distinct change from solely evaluating credit worthiness based on income, she said. HDFC Bank, however, continued to grow its business cautiously by selling cards only to its customers about whom it had first-hand credit history We do open market sales and use . third party for sales and the management of the sales force is with us, said HSBC Indias Manish Sinha. Credit bureau is a recent development that has been a boon for both customers and banks. Banks use it to check the credit history of customers and their indebtedness levels. This in turn enables banks to fix credit limits and charges for a customer. A customer on his part is always cautious of his score with the credit bureau as it helps him bargain for good terms from lenders. Customers today have become more responsible because they want a clean credit bureau record. They have started understanding the value of good financial planning and therefore have become careful about repaying credit card dues in time, said Kadambi Narahari, CEO, SBI Cards.

Moreover, banks are also working with customers to keep delinquencies under check, like offering them to convert their dues into loans payable at less than half the interest rates. When a customer makes large purchases, we offer them the facility to convert it into EMIs if they want to do so, said Jairam Sridharan, SVP and head, consumer lending and payments, Axis Bank. Consumers are happy, too, since they dont feel trapped as in the case of monthly bills, which double every two months even without new purchases. Its a convenient option as I am not shelling out the money from my pocket and I have the option of paying it in installments at zero interest, said Sukrit Sarkar, a media professional. If I do not convert into EMI and revolve on my card, I would have to pay higher interest, said Sarkar, who recently bought a Voltas air-conditioner and a washing ma. chine for `24,000 on his HDFC Bank credit card and turned it into a loan with monthly payments without compounding interest. This may not be the best position for banks as it would love to extract 36% interest from borrowers. But that hurts them with high delinquencies. Spends on cards are increasing and more importantly we see a de, cline in customers revolving their monthly dues, said Citis Yuzuak. In this highly-secretive business, the complete truth is hard to come by on individual spending, default and market share at individual banks. This may be the beginning of another cycle in the business where excesses could come many years down the line. Will the past experience prevent yet another boom and bust?
anita.bhoir@timesgroup.com

He belongs to a breed of bankers whose numbers are now down to just two digits specialists or experts in project appraisals who honed their skills in Indias financial institutions that have now metamorphosed into full-fledged banks. Balakrishan Batra, the newly-appointed DMD of IDBI Bank, is one of those bankers. He is among the few bankers who started their careers in a corporate firm Usha International, a DCM group company and then went on to banking by signing up with , the State Bank of India where he spent close to five years. Subsequently he joined IDBI when the term lend, ing institution was at its peak in the 1980s and 1990s. At IDBI, Batra worked his way up with stints at branches, regional offices as well as the head office. This probably gives him an insight into operations at the ground level, coupled with the experience of developing strategies at the head office in Mumbai. Batra is popularly known for his abilities in evaluating a project and its credit risk. In his job now, Batra oversees infrastructure financing, large corporates, debt syndication and the project appraisal team. He is familiar with Corporate India and his experience in credit appraisals will benefit IDBI Bank as it strives to regain its old glory as a top-notch lender, said a banker, who knows Batra well. The new deputy managing directors experience will also come handy at a time when the bank is battling, like other lenders, a slowdown in the economy and a knock on asset quality . Batra is at ease speaking on a range of topics and is known to be an excellent host. But that aside, an outsider fishing for any meaningful information on clients will soon realise that he is a hard nut to crack on that front. Those who have worked closely with him praise Batra for work ethics and the speed with which he takes decisions. According to one of his colleagues, Batra is a disciplinarian and is meticulous when it comes to project appraisals, given his efforts to plug any loopholes to prevent credit risk. He would strive towards perfection and could lose patience if others are unable to match his level of competence, the colleague said. Batra has a passion for Indian classical music and reading and is also one of the few bankers in the state-run banking sector with a good educational background. An honors degree in commerce from Shri Ram College of Commerce at Delhi was followed up with an MBA from the Faculty of Management Studies in Delhi. He is a chartered financial analyst by qualification from the Institute of Chartered Financial Analysts of India. Unfortunately for the new DMD, his appointment was , delayed by a year given the inordinate delay in approving such appointments by the government. But despite that, Batra has a bright prospect of perhaps heading another state-run bank, considering that he has age on his side. But as he moves up the management ladder, Batra may have to hone his HR skills to ensure that he takes his colleagues along. Thats because, while being straight forward, he risks being perceived as a harsh boss. A little bit of diplomacy may well work something which his predecessor Jitendra Balakrishnan excelled at when dealing with younger staffers.
Sangita Mehta

Even though, traditionally global Indi, ans have kept away from the Indian market, of late, they have started parking their savings in NRI deposits. In FY11 and FY12, their outstanding investments crossed $50 billion. A higher interest rate, amid the near zero interest rates back home and a weak rupee, has made such deposits very attractive for most of the depositors. With the foreign exchange reserves pile shrinking, the Reserve Bank has further liberalised interest rates on these deposits.

Revisit the Process to Speed Up Fin Reforms

Guest Column
Reforms and policy changes need substantial effort. As we look at the process and the outcome of the reform initiatives, we realise that they take years and even decades (more of late) and yet the outcome may not be in keeping with the expectations. There are various stakeholders involved with the reforms. The government to begin with and then we have the industry and its regulator and then the public at large. As the process of policy making is very unorganised and requires the stakeholders to work together for a common purpose, only chance and miracles would ensure some outcome. In the financial services sector, the larger reforms are taking ages and the tinkering carried out by the stakeholders, including the regulators, does not serve much purpose. In fact, they become more harmful. It has taken three finance ministers, several secretaries and their staff at the ministry to work on pension reforms. After all that we do not have the statute on pension enacted and its regulator is functioning out of the ordinance. Also, the entire pension reform has been ineffective in its coverage and performance. The amendments to several finance sector statutes were drafted almost five-years ago. The governments have changed. The standing committees have changed. More significantly the market dynamics have , changed even more dramatically . What was being drafted and envisaged around then may not be entirely relevant any longer. Several provisions, with statutes pertaining to the insurance sector on reinsurance, broking, public offering of equity (IPOs) and also those empowering the regulator to form regulations, which were drafted then will themselves need to be amended. In the case of the banking sector, within financial services, several policy initiatives were mooted. The new banking licences, the holding company structure for the financial conglomerates, the subsidiarisation of foreign banks are some of these initiatives. There are discussion papers on para banking and NBFCs and microfinance as well. These are also awaiting some finality and need to be enacted. In case of new banking licences for instance, the policy change was first mooted by the minister during his Budget speech. This was two years ago. Then we had two discussion papers that were prepared by RBI on the subject. It was then observed by RBI that the reform in banking licences could be carried out only if the Banking Regulation Act had essential provisions to enable the RBI to make the required policy changes. Recently the , cabinet committee studied the recommendations of the standing committee and approved it, which will now be rendered to the Parliament for debate. With necessary changes suggested by the Parliament, it would be enacted. The question that may now arise is that since the proposed amendments were drafted much before the minister started the banking licence initiative, will the approved bill have the required provisions essential for RBI to then take necessary action on the subject? If, for any reason it does not, then we may have to wait for some more time to carry out the

Crossword

4607

Value of Cheque Clearances Slips

Payment and settlements of financial transactions has undergone a sea change. A number of electronic platforms like real-time gross settlement system or RTGS and National Electronics Fund Transfer or NEFT have come up over the past few years. Besides, settlements through credit cards and debit cards and electronic clearing system or ECS have also picked up. These have replaced the traditional cheque clearances. For the first time in several years, the value of cheque . clearances has dipped below the `100lakh-crore mark.

amendments. Likewise, in case of subsidiarisation of the foreign bank branches, the discussion paper envisages the need for clarity on capital gains tax, stamp duty and the validity of hundreds of lending contracts made so far by foreign bank branches. Various ministry departments of the government will be involved. Also, at a larger level, the discussion paper envisages a near domestic bank treatment with regards to branch expansion for the purpose of financial inclusion, this is deemed to be an incentive offered to these banks . Does the government agree with such a policy change? What if it is seen otherwise? Then again several statutes will be required to be amended to carry out the recommendations made by the working group on the holding company structure. This requires co-ordinated effort and stakeholders working together with common goals and objectives. There is a need to take a fresh look at the entire process. Delayed reforms deny the sector of the desired growth and stability.
Ashvin Parekh
(The author is partner national leader, global , financial services at Ernst & Young)

Dilbert

by S Adams

VARANI SAHU

SBI

20,88,515 21,98,742

We worked with various stakeholders, including regulators and market makers during the 2008 crises. It is possible that a few lenders may act irrationally during such times. While some lenders may slow down, others may continue to grow

WWW.ECONOMICTIMES.COM

Commodities 21

Crude Spikes on Outlook for US Economic Growth

Gold Prices Seen Falling as Investors Bet on Dollar

Greenback traded near a 22-month high versus the euro on Tuesday
BLOOMBERG
SINGAPORE | MUMBAI

India Set to Hike Refined Edible Oil Production

TAPASH TALUKDAR
MUMBAI

Yellow Metal Loses Sheen

Gold prices are 5.4% lower in May for a fourth monthly decline, the longest losing run since 1999 Gold is still up 0.8% this year as investors joined central banks in buying the metal to diversify their assets Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded fund, rose 1.3% this year
In view of the latest negative news from the euro zone, the US currency is likely to gain further against the euro, which should prevent any rise in the price of gold

BLOOMBERG
SINGAPORE

Oil traded near the highest in a week in New York as speculation that economic growth will boost fuel demand in the US countered concern that Europe's debt crisis will worsen. Futures advanced 1.2% from the close on May 25. US consumer confidence probably gained in May and job growth may have picked up, according to surveys by Bloomberg News before reports this week. The US Memorial Day holiday on Monday marked the start of the nation's peak driving period. The US situation is hopeful, with demand numbers improving lately as we kick off the summer driving season, said Andrey Kryuchenkov, an analyst at VTB Capital in London, who predicts oil will trade from $84 and $96 a barrel next month. But at the same time inventories are high, so we'd really need refinery runs to hold up early summer to work through the excess crude. Crude for July delivery climbed $1.13 to $91.99 a barrel in electronic trading on the New York Mercantile Exchange, the highest since May 22, and was at $91.23 at 12:42 pm London time. Front-month prices are down 7.7% this year. Brent oil for July settlement was at $106.94 a barrel, down 17 cents, on the London-based ICE Futures Europe Exchange. Prices have fallen 10% in May . The European benchmark contract's premium to West Texas Intermediate was at $15.72, compared with $16.12 on Monday . Oil's slump this month may be stalling as futures trade close to $90 a barrel, according to technical analysis by Auerbach Grayson & Co.

old is seen declining for the first time in three days in London on speculation Europe's debt crisis will drive investors to the dollar, curbing demand for the metal as an alternative asset. The dollar traded near a 22month high versus the euro on Tuesday as concern that Europe's turmoil is hurting economic growth boosted demand for the greenback. Gold imports by India may fall 51% this month as a weaker rupee and higher duties raise prices, the Bombay Bullion Association said. In view of the latest negative news from the euro zone, the US currency is likely to gain further against the euro, which should prevent any rise in the price of gold, analysts at Commerzbank AG wrote on Tuesday in a report. Weak physical demand has also been weighing on the price of gold recently . Bullion for immediate delivery fell 0.3% to $1,575.65 an ounce by 12:57 pm in London. Prices are 5.4% lower in May for a fourth monthly decline, the longest losing run since 1999. August-delivery futures were 0.3% higher at $1,576.20 on the Comex in New York. US markets were closed on Monday for Memorial Day .

50-60 t 102 t

Gold purchase in India this May Gold purchase in India last May

Analysts at Commerzbank
Gold at the morning fixing, used by some mining companies to sell output, was little changed at $1,573.75 an ounce in London from $1,574.60 Monday afternoon. Bullion purchases by India may be about 50 tonne to 60 tonne this month, down from 102 tonne a year earlier, Prithviraj Kothari, president of the Bombay Bullion Association, said. Consumer confidence in the euro area was at minus 19.3 in May , compared with minus 19.9 in April, according to a Bloomberg News survey before the final reading is released on Wednesday . The unemployment rate climbed to 11% in April, the highest in data compiled by Bloomberg going back to 1990, according to a separate survey of economists before

the June 1 report. Silver for immediate delivery fell 0.5 % to $28.2575 an ounce. Palladium was little changed at $605.13 an ounce. Platinum was 0.2% lower at $1,436 an ounce. Platinum will average $1,750 in the fourth quarter, the median of 13 analyst estimates compiled by Bloomberg shows, as the first drop in mine supply in four years and record car sales reduce a surplus. Gold is still up 0.8% this year as investors joined central banks in buying the metal to diversify their assets. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded fund, rose 1.3% this year and stood at 1,270.26 tonne on May 25, according to company data. Central banks in Turkey, Ukraine, Mexico and Kazakhstan added to gold reserves in April, while the Philippines increased holdings in March, International Monetary Fund data show. Gold consumption in China was 761 tonne last year, Wang Shengbin, vice-chairman at the China Gold Association, said on Monday That compares to the esti. mate of 769.8 tonne from the producer-funded World Gold Council. The country may become the biggest user this year, displacing India, the council predicts.

India, the worlds largest edible oil importer, is set to increase its refined edible oil production capacity Govern. ment is in the process of raising the import duty on refined edible oil, which is mainly imported from Indonesia. This move is likely to help oil mills which have idled 60% of the total refining capacity of 20 million tonne. According to official sources, the finance ministry will soon take a decision on the quantum of the increase in the import duty which is now at 7.5%. The move will also cut down Indias dependence on imports and will bring down the import bill. Imports have become costlier as the rupee

has depreciated by about 14% in the last three months to touch its all-time low of Rs 56.37 to a dollar. The government is looking to increase crude palm oil imports so that refiners could put their idle plants into use. There is a zero duty on imports of crude palm oil. A large number of refiners are on the verge of closure due to the rising imports of refined oil and falling oilseed production in the country . It will not only enhance our production capacity but also boost employment in the sector, said Dr B V Mehta, secretary of Solvent Extractors Association of India (SEA). India meets 50% of its total edible oil demand through imports. It imports palm oil mostly from Indonesia and Malaysia.

iici q

NALCO

National Aluminiu m Company Limited (A Government of India Enterprise) M & R Complex , Damanjodi - 763008, Dist : Koraput , Odisha Phone :06853-254318,Fax :06853-254280
EXTENSION OF TENDER

Tender availability, submission & opening Date & lime of Tender No: T&C/AR/03/C770 f or t he wor k Design , Engineering, Supply, Erection , Commissioning etc of Water Sprinkling System in TRMTD area of Nalco , Damanjodi is hereby revised as follows: SalelDown load of Tender: up to 26.06.12 , Submission of Tender: On or before 28.06.12 (by 14 .30 hrs) Tender Opening Date (Technical Bids onl y): 28.06. 12 (at 15.00 hrs). All other items , terms and conditio ns remain unchanged. Details and Tender document available at www ,nalcoindia ,com/www ,eprocure.gov ,in Asst. General Manager (T&C)

Govt to Promote Black Tiger Shrimp Farming

Invites companies from Hawaii and Thailand to revive hatcheries
RITURAJ TIWARI
NEW DELHI

THE FERTILISERS AND CHEMICALS TRAVANCORE LIMITED

(A Government at India Enterprise) Regd. Office: Eloor

The Centre is planning to rope in global companies for the revival of Black Tiger shrimp farming in the country . This variety was marketed as brand India seafood before the outbreak of a viral attack white spot syndrome that cleaned up its population in some parts of the country in 90s. We are exploring partnership with global entities for the culture and domestication of Black Tiger shrimp, said a senior official of animal husbandry and fisheries department. Firms from Hawaii and Thailand have

shown interest; we are evaluating their credentials. We want them to introduce seeds that can increase the yield of Black Tiger shrimp, which is as low as 0.5 tonne to 1 tonne a hectare. This variety also known as giant tiger , prawns, is the most popular item in the Asian, European, and American markets. But the higher cost of production and its vulnerability to marine diseases forced domestic hatcheries to switch over to higher-yielding varieties like White Leg shrimp, which produces 5-10 tonne per hectare. India had been the only producer of Black Tiger variety a native to the Indian and Pacific ,

Ocean. Its reintroduction into the countrys aquaculture farms is likely to boost the shrimp exports, which are growing at a rate of 20-22% annually . In 2009-10, India exported around 6.78 lakh tonne shrimp. It grew to 8 lakh tonne in 201011, earning forex worth Rs 12,901 crore. In the last fiscal year, the export is likely to be around 10 lakh tonne. We expect the trend to continue in the current fiscal year also, said another official of the department. Shrimp, which tops the list of favourite seafood, is exported to the US, EU, China and Japan. The government is now exploring new markets to fuel the exports.

E-mail: ju lian@factltd.com ; Website: http://www.lact.co.in Transportation of Liquefied Ammonia Gas by Barge Enquiry No.MM/JV/6761 dated 29/05/2012 Sealed bids are invited b r transportation of Liquefied Ammonia Gas by Barge(s) (approx. quantity 63,000 MT per annum) using bullets provided by FACT from FACT s storage tank at Willingdon Island, Cochin to FACT PD at Udyogamandal and FACT CD at Ambalamedu and from FACT PD to FACT CD for three years. Bid document can be hadtrom the undersigned ordownloaded from ourwebsite. Due date/timetorsubmission of bids is 19-06-2012/2.00 P.M. Dy. Chief Manager (Matedals) - T&S
KERALA STATE CO-OPERATIVE FEDERATION FOR FISHERIES DEVELOPMENT LIMITED (MATSYAFED)
KAMALE SWARAM , THIRUV ANANTHAPU RAM: 695 009. Phone: 0471- 2458606, 2457756, 2457172. Fax: 0471 2457752. Web site: www.matsvaf ed.org Email: mats yafed r as ianet india .com

CORPORATE MATERIALS , FACT-PD ADMN. BUILDING , UDYOGAMANDAL -683 501, KOCHI (KERALA) , INDIA. Ph: 0484 - 2552629 / /2546555 Extn:2629 , Fax: 0484 - 2545196

No.Mfed/M 1/31 92/200 5/sale

2 1/0 5/ 12

Rubber Climbs on Hopes of China Stimulus

BLOOMBERG
TOKYO
P a t - i r

STOCKIS T/ DISTRIBUTOR/DEALER

RUPA & COMPANY LIMITED Rogd. Office: Metro Tower, 1, Ho Chi M inh Sarani , Kolkata - 700 071

Confe. odbyCMOMi

Audited Results for the Quarter and Year Ended 31 Marc h 2012
________ _________

In Lakhs
CONSOLIDATEO
__________________

Rubber advanced, reversing earlier losses after Chinese policy makers pledged new spending, boosting speculation that demand from the world's largest consumer may weather Europe's debt crisis and keep expanding. November-delivery rubber gained 0.6% to settle at 271.9 yen a kg ($3,421 a tonne) on the Tokyo Commodity Exchange after earlier dropping to 265.5 yen. The most-active contract has lost 13% this month, the largest drop since November. Asian stocks and oil increased as China's finance ministry announced subsidies for energysaving products and an official said the government would revive incentives for car buying, adding to stimulus Credit Suisse Group said may total as much as 2 trillion yuan ($315 billion). The market was buoyed by expectations for additional stimulus from China, said Makiko Tsugata, an analysts at research company Market Risk Advisory in Tokyo. Gains were limited as concerns grew that Spanish lenders will need more financial support to weather Europe's debt crisis. as Prime Minister Mariano Rajoy struggles to avoid tapping markets to fund a bailout of its third-biggest lender. Thai rubber exporters will continue buying on overseas bourses until local prices climb to 120 baht ($3.79) a kilogram, the level the government would like to see, Prapas Euanontat, the president of the Thai Rubber Association, said May 24. Thailand announced plans this month to buy more than 10,000 tons in Tokyo and Shanghai and to continue purchases from local farmers at abovemarket rates to drive prices higher. Thai rubber on a free-on-board basis was unchanged at 116.05 baht a kilogram today accord, ing to the Rubber Institute of Thailand. The September-delivery contract on the Shanghai Futures Exchange added 0.8 percent to close at 24,670 yuan a ton. Thailand's Rubber Estate Organization kept the price at which it will buy from farmers unchanged at 110 baht per kilogram, the agency said on its website today . It didn't provide the average auctioned price in three local markets. --Editor: Jarrett Banks, Ovais Subhani To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.

PARTICULARS
1 Income from operations a) Net Sales IIncome from operations(Net of Excise Duty) b) Other Operating income
2 Total income from operations Expenses

31 March Audited
2012

3 Months ended 31 Dec. 31 March Unaudited 14,070.09 14,070 .09

-

STAND LONE

________

_________

Financial Year ended 31 March 31 March Audited 69,879,5 6! 9 5 37,746.8 3,217.4 (3,305.18) 828.0 806.1 22 ,721.11 4 8 065.1 8,132.8 2,114.3
67.6
2012

_________

31 March Audited
2012

3 Months ended 31 Dec. 31 March Unaudited 14,143.46 14, 143.46 9,196.95

-

Financial Year ended

31 March Audited 71,100.23 71, 100.23 39,587.77 189.89 (2,542.93) 888.04 613.31 23 ,942.77 62,678.85 8,421.38 8,493.02 2,172.76
71.64
-

31 March Audited 65,003.38 65,003.38 42,672.42 33.89 (7,745,55) 642.91 465.08 22 ,452.33 58 521.08 6,482.30 6,613.13 1,559.78
130.83
2011

2011

________________________________________________________

Audited 18,836.00 18,836.00

-

2011

Audited 63,850,34
63 , 850.34
-

2011

2011

Audited 18940.51
18940.51
-

2011

2012

Applications are invited for marketing! distributing Chitone reducing obesity, produced by Matsyafed. capsules used for for Interested stockists! distributors/dealers! agencies are requested to apply with details of their experience and available marketing network details to the undersigned on or before 15 // 6 // . For Application Form and other details please visit 0 12 www .matsyafed.ora The undersigned reserves the right to accept !reject any or all the applications without assigning any reason thereof. Sd/MANAGING DIRECTOR

21,306.63 21.306,63

21,594 ,56 21,594.56 9,552.54 189.89 1,579.58 252.51 151.30 7 ,495.28 19221.10
2 373.46
-

[1(a)+1(b)1

PUNJAB STATE GRAINS PROCUREMENT CORPORATION

a) Cost of Raw Mater aI consumed b) Purchases of Finished Goods

d) Employee benefits expense e) Depreciation and amorlisation expense OtherExpenses Total expenses l2(a) to 2(f)1 3 Profit/(Loss) from operations before other income, finance costs and exceptional items (1-2)

c) Changes in invento d es of finished goods , work-in-progress and stock in trade

9,198.41 8,541.46 1,208.58 521.60 982.62 (2,012.95) 233.68 195.50 149.51 150.05 7,246.53 5 ,028.68 j Qj9.33 _ 12 .424.34 2,287.30 2,306.38 493.80
19.08

12278.19 550.20 (1951.91) 211.79 137.57 17,155.51 1,680.49 1,102.17 398.47

21.68
5929.67

39,342.87 2 ,315.19 (6 .061.70) 611.49 458.02 20 ,991.56

L4
6,192.91 129.42 6,322.33 1,519.64

(2,373.80) 216.57 151.85 5,269.31 ,460.88 12 1,682.58 57.42 1,740.00 579.50

13732.48 5.37 (3240.08) 221.81 139.49 17206.88 1,733.63 21.57 1,755.20 419.49
6347.81

(PUNGRAIN)
NOTICE INVITING TENDERS FOR PRESERVATION MAINTENANCE & SECURITY OF FOODGRAINS

1,645.75 1, 667.64 56322

21.89

4 Otherincome 5 Profitl(Loss) from operations before finance costs and exceptional items (3+4) 6 Finance Costs 7 Profit/(Loss) from operations after finance costs but before exceptional

20.76 2,394.22 506.93

Items (5-6) 1,812.58 1,104.42 1,303.70 6,018.5 4,802.69 1,881.29 1,160.50 1,335.71 6,320.24 5,053.35 Exceptional Items Profit/(Loss) from operations before tax 17+81 1,812.58 1,104.42 1,303.70 6,018.5 4 802.69 1,887.29 1,160.50 1,335.71 6 320.24 5,053.35 Tax Expense 501.76 358.33 436.26 1,866.3 1,600,87 526.68 377.17 446.05 1,964.64 1,883.30 Net Profit/(Loss) from operations after tax (9- 10) 1,310.82 746.09 867.44 4,152.1 3,201.82 1,360.61 783.33 889.66 4,355.60 3,370.05 Extra Ordinary Item (Net of Tax) Net Profit/(Loss) for the period (11+12) 1 310.82 746.09 867.44 4,152.1 3,201.82 1,360.61 783.33 889.66 4,355.60 3,370.05 Paid up Equity Sham Capital (Face Value- 1/ /each) 795.25 795.25 795.25 795.2 795.25 795.25 795.25 795.25 795.25 795.25 Reserve exduding Revaluation Reserve 18,227.6 15461.81 18,882.80 15,913.58 Basic earnings per sham (NotAnnualised)- in (before & afterextraordinary items) 1.65 0.94 1.09 5.22 4.03 1.71 0.99 1.12 5.48 4.24 Dilut earnings per sham (NotAnnualised)- in (before & after ext ed raordinary items 1.65 0.94 1.09 5.22 4.03 1.71 0.99 1.12 5.48 4.24 In Lakhs Part-Il Statement of Assets and liabilities Previous Corrospordiug Staridnione Corrospoiidiu Conso lidated Particuiara Quarter Particulars . , . . . Quarter Quarter Year ended Year ended Mat Mat Mat Mat ended ended 31.03.2012 31.03.2011 A EQUITY & LIABILITIES Particulars ended 3lst March, 3lst March, 3lst March, 3lst March, 31 .03.2012 31.12.2011 31.03.2011 (Audited 2012 2011 2012 2011 (Audited) 1) Shareholders Fund (Audited) (Un-Audited) (Audited) a) Share Capital 796.29 796.29 796.29 796.29 8 9 10 11 12 13 14 15 16
_______ ________ _______ _______ _______

I I I I Sealed Tenders are invited under two-bid system for appoIntment of Service Providers for PMS (Preservation , Maintenance & Secunty) of stocks of Wheat & Riceto be stored jn Godowns be jng constructed under 7/I OYears PEG Scheme. The tender documents , the terms and conditions etc. can betaken from the office of MD , PUNGRAIN , Sector 17-B , Jeevandeep Building, Chandigar h on on any working day till 500 PM of 18th June , 2012. The tender forms complete in all aspects alongwith earnest money of of 5.00 Lao as demand draft in favor of MD, Rs. PUNGRAIN will beaccepted till 1:00PM of 20t h June , 2OI2andw ill be openedthe same day at 3:30 PM in the presence of bidders who maywish to be present. Each I . biddermust quote the ratefor a minimum quantity of of Lac MToffoodgrain stoI 2.00 be preserved M MD , PLJNGRAIN have all the rights to accept or reject any tender I without assigning reason. MANAGING DIRECTOR
PUNGRAIN

A Particulars of Shareholding 1 Aggregate of public shareholding Number of shams

b)Reserve & Surplus Sub Total- Shareholder s Fund

19 , ,170 938 19 ,938 ,170 19 ,938 ,170

18 ,943.55

15 ,074 ,33

19739.84 1,600.00 1,287.07 1,448,06

j3 15 ,234.34

19,938 ,170
25.07 NIL NIL NIL
59 ,586 ,390

19 ,938 ,170

16.770 62 19.084 64 16,318.85

2,400.00 1,138.22 995, 10
15 ,128.25

18 ,288.35

15 ,522.56

% of shareholding 2 Promoters and Promoter Group Shareholding

(a) Pledged I Encumbered

25.07

25.07

25.07 NIL NIL NIL

59 ,586 , 390

25.07 NIL NIL NIL

59 ,586 , 390

2) Non- Current Liabilities a) Long Term Borr owing s b) Deferred Tax Liabilities

c) Other Long Term Liabilities

Sub Total- Non- Current Liabilities 3) Current Liabilities

1,600.00 1,261.98 1,426,75

2,400.00 1,118.49 968.58

Number of Shares NIL NIL %of shares to total shareholding of promoter & promoter group NIL NIL % of shares to total share capital of the company NIL NIL (b) Non- Encumbered Number of Shares 59,586 ,390 59 ,586 ,390 %of shares to total shareholding of promoter & promoter group 100 100 % of shares to total share capital of the company 74.93 74.93 Particulars B InvestorComplaints

Central Procurement Organization (Refineries) (R) CPO BPCL , Munibal Refinery, Mahul , Mumbal 400074 Phone: 91-22-25533010/ Fax: 91-22-25544082 NOTI CE INVITING TENDER ( C RFQ NO:1 000164 430) BPCL , CPO-Rofi nories invites 2 part bids for Fabrication & Supply of Empty Bitumen Drums to BPCL Kochl Refinery and BPCL. Mumbai Refinery from experienced and financially sound MS Drum
Manufacturers. Details of the tender are available/can be downloaded

73

4 L07

100

100

100

a) Short Term Borrowings b ) Tr ade Payab les c) Other Current Liabilities d) Short Term Provi s ion s
Sub Total-Current Liabilities TOTAL- EQUITY & LIABILITIES B ASSETS 1) Non- Current Assets

74.93

74.93

74.93

4 ,110.17 5,651.38 1,386.38 26 ,382.25 50 ,457.22

11 ,494.12

Quarter ended on 31 .03.2012

14 ,708.80 15 ,101.21 5,765.07 3,884.88 5,335.06 4,937 ,05 5,392.14 4,627,39 924.25 1,386.38 924.25 26 ,754.62 25 ,372.20 25 ,987.91 48 058.56 48 745.57 46 703.83 10 ,316.07

Pending at the beginning of the quarter

Received dudng the quarter Disposed off during tie quarter Remaining unresolved at the end of the quarter

NIL
NIL NIL NIL t i n Lakhs

SEGMENTAL RESULTS
3 Months ended
PARTICULARS Primary Segments (Business Segments) Revenue by Business Seament: Sales Services
Power Generation Total Less : Inter Segment Services Net Sales/Income fom operations r Segment results before finance costs , exceptional items and tax: Sales Services

Financial ended ear

31 March 2012 Audited Standalone

20 ,910.05 968.13

31 Dec. 2011 linaudited Standalone

31 March 31 March 31 March 31 March 31 March 2011 2012 2011 2012 2011 Audit ed Audited Audited Audited Aud ited Standalone Standalone Standalone Consolidated Consolidated

a) Tangible Assets b) Intangible Assets c) Capital Wor k In Progress d) Non C ur rent Investments e) Long Term- Loans & Advances f) Other Non CurrentAsset s Sub Total- Non- Current Assets 2) Current Assets
a) Inventory

10 ,645.24

126.67
398.51

212.19
402.35

11 ,169.58 124.17 398.51

209.19
402.35

1.00 1,225.02
13 ,245.45 22 ,227.10 12 ,689.89 0.13

1.00 992.32
0.20

412.00
1,144.02

412.00
926.32

from any of the following locations: a. BPCL E-pro curernent platform http s:ll bpc l.eproc.in b. BPCL Corporate website www.bharatpe troleum.in -.Energizing Busl ness.TendersCPO(Refi nerles) c. Government CPP Portal http:I/eprocure.gov. ln!cppp Due Date for Submission of the Tender: 18.06.2012, 14.00 Hrs. 1ST Imp o rt a nt: All upd att s, amendm ents , corrig e nda , etc., (if any) will be e posted on the above websites as and when required. There will not be any publication of the same through newspapers or any other media. Place : Mumbai (Refineries) 0GM . (CPO)

12253.30 13248.28 12265.93

23 ,562.92 10 ,224.01 20 ,666.46 12 ,554 .52 081 21 , .84 10 ,179.75

Tender for Shallow screen ing of track

TENDER NOTICE No. No. W.5841DHN12012-l3IOoenIO8 Dhanbad. dtd. 18.05.2012 Sealed Open Tender is invited forthe under mentioned work :S.N .:1., Name of work: Shallowscreening of track on Ray and Khalari Station underAsstt. Engineer , E.C. Railway, Latehar. TenderValue Completion period EarnestM oney CostofTenderd ocuni ent 68 ,5l 814/06 (Six) Months 1, 37 ,040/5, 000/Item No. Similar nature of work Item No. I Any Civil Engineering work Tender form can be purchased from Office of the Divisional Railway Manager, Dhanbad (Engineedng Tender & Bill Section) and Office of the Asstt. Engineer, Gujhandi & Barkakana upto 18.06.2012 after submission of money recei pt lowards cost of tender document which will be issued from Divisional Cashier , Booking counter of Dhanbad/Gujhandi/Kodernia/BarkakanalDaltonganj/Chopan on any working dayupto 18.06.2012. Tender form will be received in the office of the DRM/Dhanbad (Engineering Department), AEN/Gujhandi and Barkakana up to 15.00 hours on 19.06.2012 and will be opened on 20.06.2012 at 11:30 hrs, intheoffice of DRM/DHN (Engineering Department). Anytenderpapers receivedfroni otherthan Engineering Tenderboxeswi ll not be entertained. Tender document can be downloaded from website http:llwww.ecr.indianrailways.gov.in and http:I/www.tenders.gov.in. The tender must be submitted along with prescribed amount of Earnest Money and cost of tender document in shape of Demand draft draft as mentioned above which should be drawn in favour or FA& CAO!E.C. Railway, Hajipur, payable at Ohanbad . Tender received without the prescribed amount of Earnest Money and cost of tender document is liable to be summarily rejected. In In of tender documents downloaded from Internet website , if any addition/ahera tion found in the case tenderdocur nents , the tenderwill be summarily rejected. Divisional Railway Manager (Engineering) PRi258/DHN/T/72 East Central RailwaylDhanbad

b) Trade Receivables C) Cash and cash Equivalents

d) Short Term- Loans & Advances e) Other Current Assets Sub Tot Current Assets alTOTAL-ASSETS
Motes

13 ,669.64 715.81

18606.02
504.98

67 ,906.63

8.11 2.43 21 , 886 .29 14387.88 579.66 317.79 21 ,306.63 14,070.09

18 ,836.00

7.02 19 , 118 .02 282.02

3,381.90 79.76
71 , 368.29

63 ,261.18 1,436.05

79.65 64,776.88

69 ,127.27 3,381.90

72 ,588 93

79.76

64 ,414.22 1,436.05

37.21177

526.67 1,208.41 559.70

743.44

1,021.25 253.64

79.65
65,929.92 65 ,003.38

50.457,22

35 805.26 35 497.29 48 058.56 48.745.5/

512.45 1,204.17 559.69

736.00

2,276 ,67 253.64 34 527.90

46 793.83

879.59 69,

1,488.70

926 54 63 ,850.34

1,488.70
71 ,100.23

926.54

2,243.80 (2.96) 2,306.38 493.80 1,812.58

20 ,599.65 65.54

1,560.87
107.65

1658.64
40.65

Power Generation
Tot l Segment results before finance costs , a

(0.87)

2.88

7,660.08 429.77 43.00

6,173 .85
115.72

8,020.25
429.77

6,464.65
115.72

32.76 6,322.33 1,519.64 4,802 . 69

63 ,244.54

43.00

32.76

exceptional items and tax

1667.64 1,104.42
563.22

1,702.17 1,303.70
398.47

8,132.85 6,018.55
2,114.30

8,493.02
2,172.78 6, 320.24
69 ,220.29

6,613.13 5,053.35
1,559.78

Less: Finance Costs Prof it/(Loss) before exceptional items & tax Secondary Geographical Segments

Segment Revenues
Domestic

Total Segment result (Profit Before Interest & Tax) s Domestic

Exp ort Tot l a

Export

706.98 21 ,306.63 2,122.87 2,306.38

493.80

13 ,618.57 14,070.09

18 ,650.65 18 ,836.00

451.52

185.35

67,999.65 1,879.94 69, 879.59 7,669.46 463.39

605.80

850.34 63, 6,178.54 1,519.64

1 879.94 71 ,100.23 8,029.63 463.39

64,397.58 605.80

65,003.38

183.51

1,667.64
563.22 1,104.42

1,553.13 114.51

1,702.17
398.47

t 658.l7 44.00

8,132.85
2,114.30

143.79 6,322.33 4,802.69

8,493.02

6,469.34 143.79

1) The above results have been reviewed byAuditConlmitteeand taken on record bythe Board of Directorsatthe respective meetings held on May28 2012. 2) In ternis of Clause 41 of the listing Agreement details of no. of Investors complaintsfor the quarterended 31.03.2012 beginning NlLReceived NIL . disposed off NIL , Pending NIL. 3) The above Consolidated Financial Results (CFS) represents results of a) Rupa & Company Limited b) its Subsidiaries (i) Euro Fashion Inners International Pvt. Ltd. (ii) liTloogi Fashions Pvt. Ltd. 4) The figures for the last quarter for the current year and for the previous year are the balancing figures in respect of the fij Il financial year in the 31st March 2011 and the unaudited published yeartodatefigure uptothe 3rd quarterended December31 . 2011 5) The financial statements have been presented as per revised schedule VI of the Companies Act . 1956 which had a significant impact on presentation. Previous pnriodf year figures have been regrouped / / reclassified to make them comparable with those of current period/ yearwherever necessary. 6) The Board of Directors at its moeting considered and recommended dividend 150% i.e. 1.50 perEquityshnre of 1/- each forthe financial year2Oll- 12. 7) Asset used in the Companys Operations or Uabilities contracted have not been s identified to any of the reportabie segments, as the assets and liabilities are usd e interchangeably between segments.
Pl ac e : Kolka t a Dated 28 .05.2012 By Order of The Board K unj Bih a ri Ag a rwal a

6,613.13
1,559.78

Less: Finance Charges

Profit before Tax

1,612.58

1,303.70

6,018.55

2,172.78 6,320.24

5,053.35

Managing Director