UK cash transfer scheme LONDON (PTI): Western Union, world’s premier money transfer company, has formally launched its “money in minutes” service from the UK to India and three other South Asian countries.

Rajiv asked me to take over Escorts: Paul
NEW DELHI, Oct 17 — In a new twist to the controversy surrounding his abortive bid to acquire DCM and Escorts in the early 1980s, NRI industrialist Lord Swraj Paul has said it was Rajiv Gandhi who pressed him to take over the two companies.

Traders resent flight suspension
AMRITSAR, Oct 17 — Thousands of traders are a harried lot and a 200 odd families have been deprived of their source of livelihood here following the August suspension of the Amritsar-Kabul flight in the wake of a perceived threat perception due to the presence of Osama-bin-Laden in Afghanistan.

BIFR to be empowered to ensure recovery of dues
NEW DELHI, Oct 17 — The Finance Ministry is considering to empower the much maligned Board for Industrial and Financial Reconstruction to ensure quick recovery of dues of the banks and financial institutions from the sick companies.

Sony to phase out curved TVs
NEW DELHI, Oct 17 — Sony will completely phase out production of curved picture tube televisions from the Indian market shortly in line with its global strategy to concentrate on flat TVs, a top company official said.

Give power to SSI units at low cost
NEW ruling dispensation at the Centre is in place. In economic terms slogan of second generation reforms is getting higher pitch as if the first has been conceived and carried with success. Euphoria on reform is highly misplaced.

Edutech Informatics to open 20 more centres
NEW DELHI, Oct 17 — Edutech Informatics India Private Limited, the transnational joint venture company engaged in quality IT education and training, is planning a major foray into the States of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir.

Recovery of loans priority for military rulers
ISLAMABAD, Oct 17 — Ruthless accountability, recovery of long-standing loans, repatriation of billions of dollars kept by Pakistanis abroad and repayment of the country’s external debt will be the priority of Pakistan’s military regime to avoid an economic collapse, financial experts say.

Fire premium rates may go down

MUMBAI, Oct 17 (PTI) — Fire premium rates may go down by 5 to 7 per cent subsequent to rationalisation of its rating structure by the Tariff Advisory Committee (TAC).“We have completed almost three-quarters of the work,” TAC secretary A.R. Dudani told PTI, adding simplification of the rating structure was likely to result in the decline in fire premium rates.

The aim of the rationalisation process was to have one rate for one industry, instead of the numerous rates which exist now. The TAC report is expected to be submitted by the year-end.

At present the basic rate for fire insurance is arrived at after taking into account the ratings for the components.

In the case of a petrochemicals plant, the basic tariff for each plant is arrived at after taking into account factors such as construction material, properties of the chemicals used, the type of process and operations.

There are specified ratings applicable to each of the factors. Apart from these, there are certain other factors which contribute to the rating pattern — positive factors will result in a discount on the basic rate and negative factors will result in loading on basic rates.

The net result is that the premium rate charged for a petrochemicals plant built by Company A may not be the same as the one built by Company B.

The rationalisation process will do away with all such anomalies and uniform rates will be applicable to production units in the same industrial sector, Dudhni said.

To arrive at a uniform rating structure, TAC has compiled a data-base of all industries with their claims experience.

Each component in a unit will be assigned a weight in the overall rate and then the weighted average of all the components would be taken in to consideration to arrive at the final basic rate.

The discounts or the loadings can be applied later on depending on what precautions have been taken against fire hazards, Dudani said.

The “one-industry one-rate” norm will also simplify the task of the insurance companies who will not have to wade through a whole lot of ratings charts to compute the premium rate.

Dudani said that policy documents will now also contain definition of perils, which at present is not the case.

TAC is now re-examining auto tariffs. Auto tariffs were to have been increased earlier this year, but were stalled by transporters.

Dudani said they were examining the feasibility of simplifying the rationalisation of rates without actually increasing them outright.

The general insurance sector suffers huge losses from third party motor claims every year.

Mamata to approach chambers for funds

CALCUTTA, Oct 17 — Railway Minister Mamata Banerjee will approach various chambers of commerce for funds to upgrade the signalling and safety system of the railways which the Minister admits is in an appalling state.

Banerjee, who does not want to hike freight and ticket rates, is the first Minister to seek private funding for railway projects. “The money required to man 24,000 unsafe level crossings across the country is something the Railway Department cannot afford,” Banerjee said on arriving in the city after taking charge of the department.

Accidents at unmanned level crossings claim about 100 lives every year. Soon after joining the Atal Behari Vajpayee government as Railway Minister, Banerjee had announced that her priority would be improving the safety record of the Indian Railways, which is one of the worst in the world.

“There is no money left in the coffers of the department. We require at least Rs 150 billion to overhaul the safety system,” she told reporters. Indian Railways, the largest employer in the world, has reportedly turned pauper paying salaries and pension at an enhanced rate and meeting the cost of hiked diesel prices, leaving no funds for upgrading the safety system.

Banerjee said the condition of the railways signalling system was such that another major accident like the Gaisal tragedy “could be round the bend.” About 300 people were killed in Gaisal in West Bengal when two trains collided head-on running on the same track allegedly owing to a signal failure three months ago.

“The communication system is bad in over 100,000 places and the trackshave not been changed for years,” she said.

Reports suggested that Banerjee would herself discuss with the office bearers of CII and FICCI to discuss ways of generating funds.

“I was amazed to see the Railways’ pathetic condition. My first task would be to bring normalcy and uniformity in the whole system.” — IANS

Recovery of loans priority for military rulers

ISLAMABAD, Oct 17 — Ruthless accountability, recovery of long-standing loans, repatriation of billions of dollars kept by Pakistanis abroad and repayment of the country’s external debt will be the priority of Pakistan’s military regime to avoid an economic collapse, financial experts say.

The current regime realises that if these measures are not taken the economy would completely collapse and the country will face disaster, NNI News Agency said quoting the experts.

Donor agencies like the International Monetary Fund (IMF), the World Bank and the Asian Development Bank have already warned that loans to Pakistan would be withheld if a democratic set-up is not restored.

But the military regime does not seem unduly bothered by the donors’ warnings and is pinning its hope on the recovery of loans and repatriation of billions of dollars held by Pakistanis abroad to tide over the crisis and pay off its external debt without seeking new loans.

A couple of months ago Robert England, outgoing representative of the United Nations Development Programme (UNDP) for Pakistan, disclosed that Pakistanis held more than $60 billion in foreign banks.

Pakistan’s external debt is around $40 billion, which could have been easily repaid if efforts had been made to repatriate the huge foreign exchange Pakistanis held abroad, the experts said.

In the past, Pakistan had been burdened by a heavy external debt of around $ 40 billion while influential politicians, industrialists, businessmen and close aides of the previous rulers had not repaid more than Rs. 100 billion ($ 2.3 billion) they had taken in loans from the country’s banks.

The ousted government of Nawaz Sharif had promised to try the loan defaulters and tax evaders before the Accountability Bureau and pledged to put the national economy back on track by increasing exports and tax revenue and without seeking more loans from donor agencies. The Accountability Bureau under Saifur Rehman, however, remained opposition-specific, especially the family of former Prime Minister Benazir Bhutto, NNI said.

The Sharif Government miserably failed to achieve the goals due to lack of efforts and inconsistent policies and had to resort to fresh borrowing from the multilateral donors at the cost of bitter conditionalities, such as increase in the prices of electricity, gas and petrol and taxation that made the life of the common man unbearable.

Financial experts and senior economic managers believe that the country can be run without new loans from donors provided the rulers recover the loans, repatriate the money held in overseas banks and take action against the tax-dodgers. If the military regime succeeds in accomplishing the economic agenda it has set for itself, it would indeed emerge as the saviour of Pakistan, experts feel. — IANS

Rajiv asked me to take over Escorts: Paul

NEW DELHI, Oct 17 (PTI) — In a new twist to the controversy surrounding his abortive bid to acquire DCM and Escorts in the early 1980s, NRI industrialist Lord Swraj Paul has said it was Rajiv Gandhi who pressed him to take over the two companies.

The London-based entrepreneur said initially the thought of taking over the two companies had not come to his mind and he had only bought their shares.

“But then I think Rajiv got very excited about it... He said Swraj Paul, you must buy these companies,” he told Vir Sanghvi in an interview for “Star Talk” telecast on Star TV.

When the interviewer mentioned that common perception was that the then Prime Minister Indira Gandhi had urged him to teach a lesson to Indian businessmen and that Rajiv Gandhi had opposed it, Lord Paul said she had nothing to do with it.

He went on to say it was in 1983-84 that the Government turned against him and he had told Indira Gandhi that RBI and its Governor Manmohan Singh had completely reversed the policy.

Asked why his relationship with Rajiv Gandhi had soured later, Lord Paul said it happened after Arun Nehru, with whom Rajiv was having problems, stayed with him in London.

Rajiv had not told him directly about it but “I got a hint from Quattrocchi once that 7 Race Course Road (Prime Minister’s official residence) did not like it”. He had told the controversial Italian businessman that it was none of his business.

When the interviewer spoke of “suggestions coming from 7, Race Course Road” that Paul and Nehru had been business partners in various deals, such as purchase of A-320 aircraft for Indian Airlines, the NRI industrialist said he made no money on any deal.

“If I had made money on any deal then I will be a very changing fellow in my loyalties. And Swraj’s style is not of changing loyalties, neither in England nor in India,” he said.

Asked if he had any regrets looking back at India, Lord Paul said he would have liked himself to be setting up some decent size, efficient industry to show India as a “world class” industrial nation.

“I want India to be in the first league of nations, not in the second or the third and I hope that I will see it,” he said voicing confidence that this would not take too long.

To a question on his status as Britain’s roving business ambassador, Lord Paul said he was at heart “very, very Indian... I am still a boy from Jalandhar and I am still a very proud Indian. At the same time I am very proud of the country where I live now”.

Traders resent flight suspension

AMRITSAR, Oct 17 (PTI) — Thousands of traders are a harried lot and a 200 odd families have been deprived of their source of livelihood here following the August suspension of the Amritsar-Kabul flight in the wake of a perceived threat perception due to the presence of Osama-bin-Laden in Afghanistan.

Trade between the two countries has come to a grinding halt following the suspension of the Ariana Afghan Airlines flight, affecting as many as 5000 traders who were living off the export-import business between the two countries for the past four decades, say members of the community.

The traders allege that a “malicious propaganda” had been unleashed that the Ariana flight from Amritsar was being used to replenish food and supplies for the Afghan militia and that huge amount of chemical substances, used to refine heroin, were being sent.

“Pakistan has been sending armed intruders into our territory and we know the grand designs of the ISI. But has the government banned the PIA flights in India?” they ask.

Export and import of goods was cheapest and quickest through Ariana Airlines, more so after Pakistan stopped the passage of goods through its territory. Besides, payments due from parties in Afghanistan too have stopped, laments the president, Indo-Foreign Chamber of Commerce, Mr Tarlok Singh.

“If the flights do not resume soon, we will not only lose financially but it will be difficult to carry on the trade through land and compete with exporters of other countries, as it is expensive and time consuming”, says the president, Indo-Afghan Traders Association, Mr B.K. Bajaj.

For Ajit Singh, who was exporting medicines to Afghanistan, all work has come to a halt for the time being. Though he is looking for ways and means to export medicines by sending shipments via Dubai and Iran, he feels that the trade will not last long because of delay in sending the shipment as compared to air and the obvious cost factor.

Business losses apart, traders claim that more than 15,000 refugees of Afghan origin are stranded in India as their travel permits allowed them to go back directly to Afghanistan and they cannot go back via Pakistan or Iran. Similarly, about 500 passengers are frozen in Afghanistan too.

Partap Singh, a trader, claimed that not only traders, but also over 200 families, whose men worked as loaders, porters, aircraft cleaners and tractor drivers at Rajasansi airport had lost their livelihood.

“The abrupt decision to suspend the flights should be reviewed as it is not only harming the interests of the traders but also causing humiliation to thousands of people of the Indian origin stranded there”, stresses a trader, Preet Singh.

The items exported included medicines, cotton, dhoties, fabrics of various kinds, woollens, hair accessories likes clips, cosmetics, beads, stones, peppermint, motor and auto parts, ball pens, nib and other writing instruments, zarda, katha, utensils, steel blades, plastic paper, TV and watch spare parts.

According to figures available, 214 tonnes of goods, estimated at about Rs 43 crore, were exported on board Ariana Airlines from April 1998 to June this year. The figure increased to over Rs 55 crore in 1998-99.

Besides, an average of eight to ten tonnes of dry fruit was imported from Afghanistan while about 400 passengers availed of the flight , which operated thrice a week.

The flight brought an earning of Rs 35 lakh as landing and parking charges for Rajasansi airport in the last fiscal.

BIFR to be empowered to ensure recovery of dues

NEW DELHI, Oct 17 (UNI) — The Finance Ministry is considering to empower the much maligned Board for Industrial and Financial Reconstruction (BIFR) to ensure quick recovery of dues of the banks and financial institutions from the sick companies.

“Among the various measures being looked into for revamping the BIFR is to give more powers to the board. It would be allowed to order any one party stalling the revival of a sick company to fall in line with the majority,” Finance Ministry officials told UNI.

Estimates reveal that over Rs 10,000 crore of public money is stuck in the some 600 companies under the BIFR’s purview.

The denial of veto powers to a single participant will curb any vested element, in most cases the sick company itself, from delaying the turnaround. Currently, the board follows a consensus approach taking into account the views of each and every participant while formulating a revival package.

The overhaul of BIFR would be through amendments to the Sick Industrial Companies (Special Provisions) Act, 1985. The focus of which would be to curb unscrupulous companies from taking advantage of the board functioning.

Another significant proposal is that the companies approaching the BIFR will not be given a blanket protection against all secured creditors and state taxes. “A particular timeframe will be set after which any creditor can seek the board’s permission to initiate recovery proceedings,” the officials said.

The finance ministry has begun initial consultations with the BIFR, banks, FIs, industry chambers to have an “improved BIFR with more teeth and more bite”.

The Ministry has rejected the demand of banks and FIs to totally do away with the board for being painfully slow in effecting a company’s revival. Instead, the Ministry accepted the BIFR’s explanation that the huge backlog of sick companies was due to inadequate authority to speed up proceedings and lack of manpower beginning from the top.

The FM officials expressed confidence that the SICA Bill incorporating the BIFR revamp would be passed in the winter session of the Parliament.

Sony to phase out curved TVs

NEW DELHI, Oct 17 (PTI) — Sony will completely phase out production of curved picture tube televisions from the Indian market shortly in line with its global strategy to concentrate on flat TVs, a top company official said.

“The future belongs to flat TVs and we are planning to stop production of curved picture tube TVs in India by next year. Sony will embark on manufacturing only flat TVs,” Takashi Itagaki, General Manager (Marketing), Sony India, told PTI.

Sony was the first brand to launch flat CTV — Wega — in the Indian market and many other leading players like LG, Onida, Philips followed suit.

“Our mission is to diversify our flat CTV in all ranges. ‘Weganisation’ is the key word we are following and by next year Indian consumers will get flat CTVs of all ranges,” Itagaki said.

Sony launched its flat CTV in the 29 inches range this year and would come up with a 34 inch model by December, he said, adding that the company would launch 14, 21 and 25 inches TVs by next year.

Though priced much higher than the curved models, Sony was confident of cornering a substantial market of CTVs through flat TVs, Itagaki said.

“Sony will spend a substantial amount in marketing the new models in India,” he said.

Currently, the market for flat TVs in the country is at its nascent stage but Sony expects this to grow by 30 per cent in the next few years.

Itagaki said the prices of flat TVs were expected to come down drastically once competition hots up.

Give power to SSI units at low cost
By P.D. Sharma

NEW ruling dispensation at the Centre is in place. In economic terms slogan of second generation reforms is getting higher pitch as if the first has been conceived and carried with success. Euphoria on reform is highly misplaced. Close analysis will reveal that it is in fact a process of deform rather than reform. In the free for all economic regime scams, overt or covert have taken top notch in terms of achievements.

Elimination of permit-quota-raj is cited as the hall mark of reforms. It is not elimination but only shift in priority. Inefficiency of public sector units is being replaced by the greed of the private sector entrepreneurs. So in fact only large players are now entitled to the official cake. No newspaper can afford that much space which is needed to simply mention the type of bunglings.

Even well running PSUs have been grabbed at throw away prices. Taxation proposals favouring few can be made at will even mid-way of the financial year. Raw materials like steel are now given to big players at highly concessional rates which ultimately are sold to smaller units with a high margin of profit.

SSI units which used to get bank credit at lower rate of interest are now paying higher interest than big players. High risk is cited as the reason. It is a fact that SSI units account only for the 30 per cent of NPA level. How does this logic fit in here? Rate of interest from SSI units is decided on the basis of some parameters like profitability, current ratio and with-drawls by the partners etc. These are mere excuses. On an average SSI units pay 2 to 4 per cent interest over PLR. Then big players get credit at a rate much below PLR through the commercial paper route.

New minister for small-scale industry has taken charge. So fresh look on the difficulties faced by this sector should be the first priority. This is merited by the role played by this sector. Country’s 40 per cent of exports is being done by this sector. Employment opportunities are possible only by this sector. Our study of 308 companies has revealed the true picture on the role of SSI sector. These companies claim to have a 13 per cent share in exports. In fact their export earnings were negative at Rs 6,511 crore during 1998-99 due to larger content of imports. In the case of SSI sector imported content is insignificant.

It is unfortunate that we have not been able to conceive what is small in the liberalised regime. Investment limit was raised to Rs 3 crore and then lowered to Rs 1 crore which is yet to be ratified by the Parliament. This vast sector has been divided into tiny and SSI sectors. Argument runs that most of the SSI units have low investment at around Rs 5 lakh and hence the limit should be lower. The investment limit of Rs 25 lakh for tiny sector takes care of this vast segment. This calls for exclusive segment which has to compete with medium and large players. This can only be done with improved technology which calls for higher investment. So the investment should be kept at Rs. 3 crore with more effective protection to the tiny segment.

The Government has not been able to decide about the reservation of items for SSI sector. Studies have clearly shown that some items are never manufactured by this sector whereas few items are being monopolised by few hands. So there is need both for de-reservation as well as reservation. This aspect should be got studied and then firm final decision should be taken instead of dithering.

New Minister for SSI sector is advised to have interaction with large cross section of entrepreneurs from all parts of the country. As on now economic policies are framed by consulting only few big players. How does it matter if even 100 groups from each State are heard to arrive at the right decision. Policies can be frame based on the logic rather than pressure.

The reform process will distort further if things are taken in right earnestness. Politics should have diminishing role in economic policies. Right from the year 1991 it has been emphasised that actual user’s charges for power and water should be charged. But slogans of free power and water are still heard.

If country is to be made stronger in economic terms then price of energy has to be very low. Big players have their captive power which is cheaper. Smaller units are being crushed by the ever rising prices of energy.

Edutech Informatics to open 20 more centres
From P.N. Andley
Tribune News Service

NEW DELHI, Oct 17 — Edutech Informatics India Private Limited, the transnational joint venture company engaged in quality IT education and training, is planning a major foray into the States of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir.

The company plans to add 20 new IT training centres to its present network of 12 centres in the four north Indian States by the end of the current year. The company has already launched an aggressive franchisee recruitment drive in these States. Edutech Informatics currently has 105 IT training centres all over the country.

Talking to The Tribune, Mr N.S. Rajan, General Manager, HR and Corporate Communications, the Informatics Network Development system is unique. Under this system, there are five levels of management who assess a prospective franchisee. Only 5 per cent of these ultimately become part of the informatics network.

“For us, selecting a franchisee is like selecting a life partner. A franchisee is part of our family. The three key factors that we assess in a prospect are his capability, commitment and compatibility with our organisations”, Mr Rajan said.

Edutech Informatics, a part of the Singapore-based Informatics Group, was formed in August last year. It is a joint venture between Edutech Holdings (India) Pvt Ltd, Informatics Holdings Ltd., Singapore, Krislon Systems Sciences Private Ltd., India, and individual shareholders.

Edutech has partnership with major IT vendors including Microsoft, Oracle and Sun Java. It was recently appointed National Training Partner for Lotus education in India. This partnership enables Edutech Informatics to extend Lotus authorised training partner status to its entire network of franchisee centres.

More than 40 leading universities across the USA, UK and Australia have granted recognition to the IT education courses designed and run by Informatics. Besides, its Diploma and Advanced Diploma courses in computer sciences are accredited by the University of Oxford, Delegacy of Local Examinations and the University of Cambridge.

UK cash transfer scheme

LONDON (PTI): Western Union, world’s premier money transfer company, has formally launched its “money in minutes” service from the UK to India and three other South Asian countries. The Managing Director of the Union Henk Elzenga said on Sunday that his company would have presence in about 500 locations in India, mostly in Punjab, and that cash up to Rs 50,000 would be delivered to the addressee within “minutes” after the sender deposits the money with the company agent in UK. The other countries covered under the launch are Pakistan, Bangladesh and Sri Lanka.

by K.R. Wadhwaney
IA, AI require more aircraft

Throughout his tenure — not long enough though — Sharath Kumar played ‘sport’ with country’s civil aviation and tourism. The Prime Minister Atal Behari Vajpayee perhaps realised this and provided him sports among other portfolios in the new Government formed on October 11.The civil aviation and tourism — usually under one Ministry have been split into two. Civil aviation will be looked after by Sharad Yadav while tourism will be under the control of Uma Bharati. “We were expecting one but instead we got two” was the reaction of chief executives of the several units, including Air India and Indian Airlines.

As is customary, Chief Executives called on two Ministers who, according to information, seemed enthusiastic and keen on doing something for the cause of these two vital areas — aviation and tourism. “Both Ministers are bubbling but what will eventually emerge out of them will be known in the next few months”, is the reaction of the officers.

Both aviation and tourism have been passing through a very lean phase as many schemes and proposals from the days of C.K. Ibrahim to Ananth Kumar have stayed unimplemented. The expansion of fleet and improvement of infrastructure at international airports have been merely on paper. Similar is the State of tourism.

If history is any yardstick, every new Minister spends a sizable of his time in studying the schemes and plans, prepared by predecessors, only to eventually scrape them. By the time he is done with the schemes already pending and he prepares new programmes, he is moved out of the Ministry. The result: one step forward and two backward.

Whatever may be compulsions and constraints, there is an urgent need for two national carriers to have fresh quota of aircraft so that they are able to fly on additional routes. There are several international routes, which are going abegging. All these routes, for example, in gulf, are lucrative. But two national carriers have been unable to expand their route capacity because of paucity of aircraft. All that they have succeeded is cutting each other’s revenue. This is indeed unfortunate but private operators, Indian and foreigners, are the gainer.

by Ashok Kumar
Rolta India may keep up performance

Q: Do you recommend investment in the shares of Esab India?

— Gursharan Narula, Bathinda

Esab India is a leading player in the welding consumables industry. The company is dominant in the premium segment, evident from the 70 per cent market share. The company has been affected by the slowdown of the economy. The same is reflective in its lacklustre financial performance during 1998-99. The sales and pet profit at Rs 162.8 crore and Rs 8.7 crore respectively, thus translating into an EPS of Rs 5.4. The main revenue earner for the company is welding electrodes which account for 55 per cent of the turnover, 30 per cent and 10 per cent from gas welding equipment and continuous wire electrodes respectively.

The company plans to concentrate on exports with a view to boost the same. It has managed to improve its working capital management which should hold it in good stead for the future. Though the performance of the company was below par, the same is likely to improve in the years to come. In view of the good prospects, discerning investors are advised to invest for medium to long term gains.

Q: Highlight the financial performance and the future prospects of Eternit Everest?

—Mandakini Garg, Shimla

An MNC, Eternit Everest Ltd. (EEL) is engaged in the manufacture of cement based products, asbestos sheets being one of them. The company belong to the Eternit group from Belgium. ACC also enjoys a 26 per cent stake in the company. On the financial front, the performance of the company was adversely affected by the lull that was prevalent in the housing sector. For the year that ended in December 1998, the company posted sales and net profit at Rs 140 crores and Rs 3.4 crore respectively, thus resulting in an EPS of Rs 2.3. With a major thrust been given to the housing sector, the fortunes of the company are expected to improve. The strong parental backing is also likely to prove beneficial to the company. The prospects of the company appear to be promising.

Q: What are the medium to long term prospects of Ciba Speciality Chemicals?

— Gaurav Seth, Chandigarh

Ciba Speciality Chemicals Ltd (CSCL) is recognised as a leading player in the speciality chemicals industry. The company is a subsidiary of the Swiss company with the same name. The parent enjoys a 51 per cent stake in the company. These products enhance the performance and feel of the materials of the user industry. On the financial front, the performance of the company was satisfactory. For the year that ended in March 1999, CSCL posted sales and net profit at Rs 308.2 crore and Rs 9.5 respectively. The EPS therefrom worked out to Rs 6.8. Under its belt are popular brands such as Tinopal and Araldite, the latter has the distinction of being a market leader.

The company is likely to benefit from the entry of many multinationals in the personal care segment. In view of its strong fundamentals and good track record, existing shareholders are advised to hold on for medium to long term gains.

Q: Comment on the prospects of Rolta India?

— Harishchandra Trivedi, Shimla

Rolta India is a prominent player in the computer hardware and software industry. This company has a niche market in providing solutions in CAD/CAM/GIS and office automation. The company functions under the technical collaboration of Intergraph Corporation, US. Financially, the results of the company depict a sound performance. For the year that ended in December 1998, RIL posted sales and net profit at Rs 115.9 crore and Rs 41.9 crore respectively, thus yielding an EPS of Rs 7.4. For the first quarter of the year that will end in December 1999, the company registered sales and net profits of Rs 40.6 crore and Rs 14.1 crore respectively. The company also has a tie-up with the Dell Corporation of USA for PC products. It also has tie-ups with Madge and Intel Corporation for Internet and Internet technology. RIL also provides a range of Intel’s latest Pentium and Pentium II based desk tops, notebooks and servers. The company is expected to continue with its major thrust in softwares. It has recently developed a software called Robust which find application in the banking sector. It appears that RIL will continue to perform well in the future.

Q: Please comment on the future prospects of Gujarat Mineral Manufacturers?

—Jatinder Kaur, Jalandhar

Gujarat Mineral Manufacturers Ltd (GMML) is engaged in the manufacture of chemical process equipment. The company is a subsidiary of Pfaudler Inc., USA. It enjoys a 40 per cent stake in GMML. The product portfolio of the company includes glassline reactors, storage tanks, vessels, agitated nutsche filters, mixing systems, wiped film evaporators, etc.

The company caters to a host of prominent pharma companies, agrochemicals, fine chemicals and dyes and intermediaries. Its clientele list includes Cipla, Ranbaxy, Hoechst Marrion, Orchid, Lupin, BASF, Bayer, etc.

On the financial front, the company cannot boast of a good track record. For the year that ended in March 1999, the company posted sales and net profit at Rs 38.4 crore and Rs 2 crore respectively. The EPS therefrom worked out to Rs 11.8

It is reported that the parent company has decided to raise its stake to 51 per cent. This could prove beneficial to the company. GMML could have better access to the parent’s technology and customer base. The company is expected to perform better on the export front too. Thus, it appears that the company is headed in the right direction.

Simbhaoli Sugar
MUMBAI, Oct 17 (PTI) — Up-based Simbhaoli Sugar Mills Ltd (SSML), has acquired the remaining 50 per cent stake in Chilwara Sugars Ltd (CSL) having a value of Rs 24 crore from Tete & Lyle Investment (India) Pvt Ltd (TLI).

Export basket
NEW DELHI, Oct 17 (UNI) — India’s export basket has remained unchanged with dominance of traditional items like textiles, gems, jewellery and agricultural with only a marginal increase in the share of value-added products.

Net bazar
MUMBAI, Oct 17 (PTI) — It is yet another Internet shopping mall dedicated exclusively to Indian products, but is targeted at North American and European markets. Advance Business Consultants Ltd (ABC) of Delhi is planning to launch this e-commerce portal, with online payment facility, in the first week of next month.

IEC
CHANDIGARH, Oct 17 (TNS) — IEC Softwares Ltd has signed a contract for three years with the B.R. Ambedkar University, Agra. The scheme is going to benefit 50,000 students studying at the undergraduate level. It is estimated that the contract will be of the order of Rs 300 million in the next fiscal year.

Syam Software
MUMBAI, Oct 17 (PTI) — Syam Software Ltd (SSL) has decided to raise Rs 6 crore through private placement/ preferential allotment.