Budget leaked out: CPM
NEW DELHI, Jan 24 —The CPM today charged Finance Minister Yashwant Sinha with leaking out the Union Budget to give undue benefit to certain sections of the industry.

Inflation falls to 4.43 per cent
NEW DELHI, Jan 24 — Annual rate of inflation fell to a one-year low of 4.43 per cent for the week ended January 9 due to drastic fall in the prices of diesel.

Xerox to hike stake
NEW DELHI, Jan 24 — The US-based Xerox Corporation is increasing its stake to 40 per cent in its Indian joint-venture company Modi Xerox Ltd through a preferential offer.

Shaw Wallace disinvestment
NEW DELHI, Jan 24 — Shaw Wallace and Company has completed the process of disinvestment of its consumer products business in favour of Henkel Spic India Ltd for a consideration of Rs 51.05 crore.

‘Stand for integrity & move on’
By Roopinder Singh
Tribune News Service

CHANDIGARH: “Get involved! It is never the activity of the rascal but the inactivity of the good that destroys a society. Life is not a sport, and unlike the game of football, in the game of life, you can’t replace the players, and the stakes are too high, that’s your kids and our kids. You get no second shot in this game of life. So the answer is: ‘Stand for integrity, and move on’. You can’t take a back seat.”

Shiv Khera, the author of “You Can Win,” knows how to get your attention. Shiv is a Punjabi, a Modern School, Delhi and Sri Ram College of Commerce product, who immigrated to Canada, and then the USA. He has had the ups and downs so common in the life of an NRI.

“The last 25 years of my life have been very tough years, I kept blaming my life, kept blaming the whole world, not realising that the problem was within, nothing changed outside, but something changed inside and the direction of my life changed. That’s what got me to the realisation that many times we are our own biggest problem.”

“I stared volunteering my time teaching jail inmates in America my self-esteem programme, and I saw their lives change. I took it to the corporate world and it just took off, I have clients, including Lufthansa Airlines, the Govern-ment of Bahamas and others.”

Shiv explains his programme in a simple way: “We asked this one question to many decision-makers all over the world: ‘If there is one thing that you would like to change in your organisation that would be more productive, what would it be?’ Everybody said: Attitude.”

As he puts it, “Everybody wants to climb up the ladder to success, only to find that it is leaning against the wrong building. Success is important, but success without fulfilment is empty, it means nothing, just as good looks without goodness become irritating after some time.”

“Unlike other professionals who tell others what to do, we do not tell anybody what to do. We believe most people know what to do, the question is: are they doing it or are they not. Why are they not doing it? What’s missing? The spark, the motivation. What we can do is to inspire people. I can’t act for you, I can inspire you to act for yourself.”

Shiv stresses on self-esteem, and though he says what has been said before, he puts it across in a manner that does get your attention.

What is self-esteem? “Self-esteem is a combination of self-respect, self worth, self-evaluation, self-discipline, self-confidence. All those put together give a feeling, which is called self-esteem. Self esteem gives rise to a self image, and every time you do something good, your self image rises up, and it goes down every time you do something bad. Even the corrupt guys do not want to be corrupt, because deep down they know that they are wrong.”

From people to nations, what is this consultant’s view about India? “How do you measure the progress of a country? It is not by industry or infrastructure, it is by the quality of the character of the people that the country is producing, and unfortunately we are not, we are not world players in anything, after 50 years of independence we are not anywhere. Who brought us to this level? It is the inactivity of the good people. Good people have shied away from public responsibility, and that is why we are here. Why don’t I stand by you? Because it is inconvenient. So long as citizens of a country prefer convenience to conviction, we are next in line (of fire). Whatever today’s politicians are doing to others, if you do the same to them they say foul. Nobody resents harsh laws, what people resent is selective impartation of justice.

“People often ask me what is the reason for the success of the Japanese. It is their patriotic feeling. Quality product, responsible behaviour is considered patriotic, poor quality product, irresponsible behaviour is considered unpatriotic. Case closed.

“Pride in the country means that anything made in India carries the pride and the dignity of every citizen in the country. Unless you bring that feeling here, nothing is going to work.”

Woman power-II
Help and hard work did it
by Harvinder Khetal
Tribune News Service

CHANDIGARH: Worry for her polio-stricken daughter made Surinder explore opportunities to train her in some profession. About two years ago, she came to know of a training workshop in quilting being organised by Canara Bank from some friends of her daughter who is now in Class X. After attending the workshop, the lady was inspired to take a loan to buy the Singer Fashionmaker and start off on a job that would supplement the family income. Her husband works in the Post Office and they have four school-going children.

Now from her home in Attawa village (House Number 145), the 40-year-old woman does pico work on dupattas and turbans. She has contacts with tailors, who send her the work and take their commission. Occasionally, she also gets an order to make quilted bags and embroidery. Some time Surinder involves her daughter in the work but these days, she devotes her time to prepare for the board examination.

While she is not exactly flooded with work and would like to see it pick up more, it was a proud day for the family. When they bought a scooter recently and Surinder, with her new confidence, dared to learn to drive it and compete with her city counter-parts.

When Varinder Sandhu, got married in 1970 little did she know that the diploma in handiworks that she earned from her parent’s village in Sangrur would be put to entrepreneurial use a quarter of a century later.

Varinder was widowed in 1984 and she had two kids to look after. It was only four years ago when her daughter got married that she felt time weighing heavy on her. On prodding from her friends and relatives, she decided to put her skill to test. First, she taught 10-15 poor girls the craft and then, with their help, she started taking orders. Soon word spread and her hand-knitted sweaters, cardigans and pullovers, croacheted shawls and embroidered salwar kameezes were much in demand.

A normal sized sweater costs about Rs 300 and the customer goes home worm in the knowledge that the wool, the colour and the pattern are of his choice.

But Varinder has been facing some problem from her landlords and would feel more comfortable in renting out a booth. Her products, even though being slightly costly as they are handmade, are always lapped up at the stalls she hires during various exhibitions and festivals in the city.

Mrs Neelam Lakhanpal’s story reads like a film-from riches to rags to riches. Today she runs a coaching centre of hand and machine embroidery and quilting in two-hour batches from 10 a.m. to 6 p.m. at her residence. With help from 10 of her good students, Neelam even takes orders to make polyfil quilts (a 400 gm filling in cotton costs Rs 700 and in velvet, Rs 2,000). Bed linen and baby sets are her other items of speciality. With her savings from the income of Rs 10,000 to Rs 12,000 per month (she is an income tax payer), Neelam has even managed to buy a four-wheeler.

A far cry indeed from 1984, when she established the centre, which is recognised by singer. They had then come from Mumbai after selling their house there. Neelam, from Jalandhar, was married with Amrit Lakhanpal, a film actor, in 1980. A batchmate of Jaya Bhaduri and Shatrughan Sinha at the Pune Film Institute, Amrit has enacted the role of a villain in many movies. But then in the process of producing a film, he suffered huge losses and out of frustration, they left Mumbai.

But dire to the grit and perseverance of his wife, they overcame bad times and their two sons and a daughter can afford to make demands from them.

Panchkula-based Sunita Nanda (36), wife of an engineer working with the HSEB, was leading an easy life, looking after her two sons and husband till she attended a pottery workshop organised by Canara Bank. That did it and the entrepreneur’s bug bit her.

She launched “Aakaar Designer Pots” about 6 months ago and has not looked back since. Her home became the venue for producing clay pots, complimented with matching lamp shades with help and cooperation from her in-laws and parents, Sunita was encouraged to hold an exhibition of her wares on Divali. The good respose has prompted her to hold more such sales. At the moment she is busy fulfilling an order for 100 pots in Delhi that her sister-in-law has arranged.

The young lady is looking forward to setting up a full-fledged pottery unit.

Budget leaked out: CPM

NEW DELHI, Jan 24 (UNI) —The CPM today charged Finance Minister Yashwant Sinha with leaking out the Union Budget to give undue benefit to certain sections of the industry.

Anticipating changes as a result of the leaks, these sections can buy and sell and make huge profits by unfair and unscrupulous means, said CPM Politburo member Sitaram Yechury.

“It need to be recollected that many Finance Ministers in advanced capitalist countries have lost their jobs when they inadvertently hinted at budget proposals,” Mr Yechuri said.

The Budget proposals involve either increase or reduction in the rates of taxation and must always be kept secret, Mr Yechuri said, adding that consumers, producers and traders must be treated equally in a democracy.

Already the Finance Minister had let it known that there would be an increase in import duties and that income tax rates would not be lowered any further.

If Mr Sinha now speaks of a tight Budget it is primarily because of increased expenditure following the government’s reckless decision to go in for nuclear tests, Mr Yechuri said.

Inflation falls to 4.43 per cent

NEW DELHI, Jan 24 (PTI) — Annual rate of inflation fell to a one-year low of 4.43 per cent for the week ended January 9 due to drastic fall in the prices of diesel.

This is the lowest rate of inflation based on wholesale price index (WPI) since December 13, 1997 when inflation had fallen to 4.31 per cent.

The sharp fall in inflation of 0.60 percentage points to 4.43 per cent (provisional) from 5.03 per cent (P) in the previous week is on account of the government’s decision to reduce the prices of diesel by about Re 1 per litre in the first week of January.

The continued fall in prices of agricultural products also accounted for the decline in the rate of inflation.

Compared to 4.43 per cent, inflation was at 5.98 per cent during the same week one year ago.

The rate of inflation has been falling persistently since the last two months as prices of agricultural products eased on arrival of kharif crops. It has fallen by about 4.4 per cent since the first week of November when it touched a three-year high of 8.85 per cent.

Xerox to hike stake

NEW DELHI, Jan 24 (PTI) — The US-based Xerox Corporation is increasing its stake to 40 per cent in its Indian joint-venture company Modi Xerox Ltd through a preferential offer. Indian promoter B.K. Modi’s Modicorp Private Ltd is also increasing its stake to 35 per cent from the current level of 29 per cent. The current holding of the $ 18 billion Xerox Corporation in the Indian venture is 35.9 per cent. Preferential offer to both the promoters is being made in equal proportion at Rs 108 per share. The offer is of eight million shares of Rs 10 each at a premium of Rs 98 (i.e. Rs 108 per share) to mobilise Rs 86.4 crore.

The share of Modi Xerox closed at Rs 118.50 on Bombay Stock exchange on Friday. After the preferential offer the paid-up capital of modi Xerox will increase to Rs 27.46 crore from Rs 19.46 crore.

Shaw Wallace disinvestment

NEW DELHI, Jan 24 (PTI) — Shaw Wallace and Company (SWC) has completed the process of disinvestment of its consumer products business in favour of Henkel Spic India Ltd for a consideration of Rs 51.05 crore.

Under the disinvestment plan Henkel would hold majority shares in SWC consumer product division companies which include Calcutta Chemicals Company Ltd (CCCL) and Detergents India Ltd (DIL).

Henkel will now own the distribution rights of consumer products division and the new products portfolio will include Margo toilet soap, Neem toothpaste, Tuhina skin care from CCCL and Chek, Super Chek and Regal Detergent bar from DIL. The deal between the two parties was signed late Friday at Calcutta.

by K.R. Wadhwaney
Corporatisation: will it work?

Every new minister is ambitious. He brings in his own plans. The present minister for Civil Aviation Mr Ananth Kumar, is no exception. He has been able to secure in principle the clearance of the Cabinet for the corporatisation of five airports. They are at Delhi, Mumbai, Calcutta, Chennai and Bangalore. Five more airports may be internationalised.

The minister reportedly feels that corporatisation will liberalise the Airports Authority of India (AAI) and will help start the process of privatisation. Once each of these five airports become corporatised each will become a separate entity. The experts feel that it is easier said than done. “It is easy to draft plans on paper but it is difficult to implement them”, argue aviation experts.

When Indira Gandhi Interna-tional Airport (IGIA) was commissioned about three decades ago, there were plans to have another world class airport to keep with the fast growing aviation industry. During these decades, nothing much has been done at Delhi where the airport lacks in many essential needs, including clean toilets. Is it not shocking that even toilet paper is not easily available for passengers and visitors? Why cannot the Aviation Ministry look into this aspect so that passengers do not carry a very poor impression of the country.

The AAI’s overall performance has been far from satisfactory. It is one thing to swell its balance sheet by charging exorbitant fees from the users, but it is quite another to provide amenities. India’s ranking is deplorable in the world of aviation. The AAI’s primary concern should be service to passengers and not earning huge profits.

The AAI bigwigs have gone on record saying that corporatisation has been ‘aimed’ at making airports “profit centres”. The aviation experts feel that it would have been great if the officials had said that the corporatisation of airports would render them “service oriented”.

When the flights are cancelled because of several reasons, including fog, there is virtual chaos at the IGIA. “This is what should be handled first instead of making lofty promises, which are meant only to be broken”, said three senior airline officials working at the IGIA.

The Civil Aviation Ministry should hold discussions with certain bodies in this sector including AOC, (Airline Operators Committee).

Retirement age

Air India’s newly constituted board’s decision to revert to the retirement age of 58 from 60, raised by the government last year, may cause yet another round of negative publicity for the airline.

Some of the officials, about 500 in number, hold the view that the airline is free to reduce the age from 60 to 58 but its decision cannot be enforced with retrospective effect. In other words, they emphasise that legally they will continue to serve until they attain the age of 60 years or the airline pays them for the remaining period.

The retirement age of Air India employees, like in any other government sector was 58 but the government raised it to 60, last year. There were some (in the airline) who were all set to receive higher positions and in some cases even promotion orders had been issued. But this did not become a reality as the retirement age was increased by two years.

The exit of the 500 staffers, if brought about, would lead to the airline saving about Rs 60 crore. But some staffers may seek legal redress and this may mean further expenditure instead of effecting any saving.

The airline has indeed undertaken several cost-cutting measures in order to stay afloat but reducing the retirement age from 60 to 58 is certainly not a very judicious decision since legal opinion is divided.

by Ashok Kumar

Q. Please comment on the long term prospects of Ballarpur Industries in which I hold shares?

— Trilok Shourie, Solan

Ans: Ballarpur Industries is a prominent player in the paper industry. However, the company has been experiencing losses on account of the slowdown in the industry. It has now signed an MoU with Ahlstrom Paper Group, OY, Finland for transfer of technology to manufacture speciality products like automotive filter papers, cores and core boards etc. The company has also started R&D projects in order to develop high yielding pulp wood trees through clonal technology, to boost production of plantations. On the financial front the company’s performance has been unexceptional.

Ballarpur Industries is setting up a new pulp mill with a capacity of 150 tonne per day, in order to produce pulp of international quality. It is also investing in a major paper machine alongside an upgradation of its paper finishing facility. The company’s being a net foreign exchange earner depicts that the decline in the value of rupee is going to enhance its revenues. And since its raw material requirements are indigenously met, its import costs are minimal. Its long term prospects thus seem to be improving, albeit slowly.

Q. Should I hold or sell the shares of Pfizer India?

— Balchandra Saraf, Chandigarh

Ans: Pfizer planned a strategy to free as many drugs of the DPCO purview as possible to boost sales and profits. This was done through various ways including transferring of brands of small - scale units, re-classification of products as food products, and recategorisation of the drugs by dropping ingredients which were under DPCO. And Pfizer’s strategy proved to be a phenomenal success. From about 90% of its output under DPCO in 9203, just 10% of its products were under DPCO purview by 9703. Meanwhile, as a part of its restructuring programme, Pfizer’s is in the process of relocating its headquarters in Mumbai to Jogeshwari, a suburb, from Nariman point. The company has already leased out a major portion of the premises at Express Towers, which is expected to fetch a hefty revenue in the coming years besides effecting savings in overheads.

The relocation is expected to result in a net savings of nearly Rs 3 crores annually.

Moreover, Pfizer is reportedly planning to outsource some of the key ingredients including bulk drugs instead of importing them. With the domestic prices of these drugs being substantially lower than their imported pieces, this would result in a substantial savings Pfizer. Meanwhile, the sale of Pfizer’s Ankleshwar unit, once through, will substantially improve its cash flow. Pfizer will not have much problem disposing of this unit due to its location and state-of-the-art machinery. In fact, it has reportedly transferred a substantial portion of its manufacturing operations at Ankleshwar to third party contracts.

The parent’s decision to hike its present 40 per cent stake to 51 per cent also augurs well for Pfizer as it indicates the increasing interest of the $ 11.3 bln, (1996) research-based global pharmaceutical company in it. Pfizer, US, has a major presence worldwide in six key therapeutic areas, cardiovascular diseases, infectious diseases, central nervous system disorders, allergy and arthritis. However, there is some concern about the parent’s intentions to set up a 100% subsidiary in India. Moreover, the parent is also considering the possibility acquiring a 51% stake in Duchem Laboratories (with balance 49% remaining with the Pfizer) which may result in bifurcation of focus on Duchem at Pfizer’s cost. Yet, the long term prospects of this company are fairly bright.

Q. How would you rate the long term prospects of Videsh Sanchar Nigam Ltd. (VSNL)?

— Amarpreet Singh, Ludhiana

Ans: VSNL is the public sector telecom giant of the industry. The company has a monopoly on all calls made in and out of the country till 2004. It has introduced several services like leased lines E-Mail, Internet, videos conferecing and frame relay. It was rated among the top 20 provides of leased lines internationally in a user servey in Data Communications in May 1997. On the financial front the company’s performance has been good. The company has planned a series of expansion plans, including the setting up of international gate ways at all four metros, 14 satillite earth stations and there under sea cables.

It has also under taken a 4600 KM fibre optic undersea cable system fibre optic link about the globe (FLAG) gateway expansions metro switch commissioning etc. VSNL is planning a direct to home service platform for Indian satellite channels, has tied-up with Comsat Telstra TMI and USA Sprint. Overall, the prospects of this company seem satisfactory.

Q. Do you recommend an investment in the shares of E.Merck (India)?

— Ishween Anand, Shimla

Ans: A 51 per cent subsidiary of Merck, Germany, E.Marck (India) is a dominant player in vitamin E formulations and one of the major players in other vitamin formulations. It manufactures basic vitamins, drugs, laboratory fine chemicals, reagents, other formulations, under-active ingredients and diagnosties in collaboration with E Merck and Merck Damstadt of Germany. Presently facing an enquiry under MRTP act for not stipulating the minimum price on its products, EMIL seems to be protected by its plea that none of its clauses or statements permit the dealer to sell at lower rates than quoted. Barring this controversy the company has been operating satisfactorily. The long term prospects of this company are quite satisfactory, and hence, a long term investment could be considered, albeit ideally at price declines.

Q. Please advise me whether I should hold or sell the shares of MTNL?

— Suneel Sahani, Kurukshetra

Ans: A leading player in the telecom industry, Mahanagar Telephone Nigam Ltd (MTNL) holds a licence for basic services in Mumbai and Delhi. With the decontrol of the industry and private sector companies expected to ventures into telecom soon, the company is planning to restructure its operations. MTNL now plans to lay emphasis on quality and consolidate its leadership position.

On the financial front, the company can boast of a impeccable track record. The company is planning to retain customers by offering them extended services like call waiting, call transfer, abbreviated dailling, etc. The new services offered could enable it to combat the private players. Thus, discerning investors could continue to remain invested in this company.

Autolite

I deposited Rs 15000/- with Autolite (India) ltd, D-469 Vishkarma Industrial Area Jaipur ( Rajasthan) for one year fixed deposit scheme vide FDR No 22/001001. The said amount was matured on December 13, 1997. Despite many reminders I have not received the money back.

Subhash C. Taneja

Rohtak DCM

I invested Rs 10,000 in DCM Limited, New Delhi under NCD Series ‘A’ in 1997. They were redeemable after expiry of 17 months and 25 days i e on 14.8.1998. The original Debenture Certificate bearing Folio No 100346 duly discharged was sent to the company on 4.8.98. The company is not paying the amount despite several reminders.

Charanjit Kaur
Mohali

Vermani Steel

I was allotted 100 share vide certificate No. 0010078 Folio No 001577. I deposited the balance amount of Rs 500/- vide cheque No 01/271 dt. 21.12.93 to Vermani Steel Strips, Delhi. More than 5 years have elapsed, I have not yet received the fully paid endorsement certificate despite reminders.

Ritu
Delhi

Kukarsons

Certificate for 100 shares held by me against Folio No. 14856 was sent to Kukarsons (Indo-French) Exports Ltd. by regd. post on 27.12.95 alongwith allotment money receipt for endorsement of full payment. Despite repeated reminders, I have not received the above shares after endorsement of full payment.

Usha Rani
Raipur Rani (Panchkula)

Perutek Services

I invested Rs 1250 in December 1995 with Perutek Services, Nehru Place, New Delhi for investment in teak trees. I was issued yearly interest cheques and four-tree certificate with date of maturity in December 2007. I deposited cheque No 409533 dated 14.12.98 for Rs 175 drawn on State Bank of Hyderabad, New Delhi. The cheque was received back on 22.12.98 with the remarks “Insufficient Funds”.

Sunil Minocha
Chandigarh

LML

I hold 100 shares of LML Ltd bearing Folio No. 290083. I have not received dividend for 1996-97.

Kriti Chawla
Ludhiana

Kedia Distill

I sent 100 shares with Folio No 1400, certificate No 81110, distinctive No 8110701 to 8110800, to Kedia Distilleries Ltd, for transfer of shares in my name. I have sent many reminders for the transfer. Till to date I have not received the shares.

Narinder Kumar Gupta
Rampuraphul