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Monday, May 17, 1999
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Foodgrains & sugar rot in FCI godowns
NEW DELHI, May 16 — Huge stocks of 11.60 lakh metric tonnes of foodgrains and one lakh tonnes of sugar lying in godowns of the Food Corporation of India for more than two years have become unfit for human consumption.





aviation notes



Grape vine

APEC calls for new body to cut capital flow risks
LANGKAWI (Malaysia), May 16 — The Pacific-rim Finance Ministers today called for the establishment of a new and permanent body, with members from rich and poor nations, to study ways of improving the global financial system and reducing the risks associated with volatile short-term capital flows.

Carpet exports collapse
AMRITSAR, May 16 — The carpet industry at Rajasansi, near here, is on the verge of closure due to a fall in exports and a rise in octroi and sales tax.

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Paper scrips in limelight
NEW DELHI, May 16 — Stock prices of major paper companies, including Ballarpur Industries and ITC Bhadrachalam, have outperformed BSE sensex and NSE nifty with returns as high as 119 per cent in the last two weeks, thus showing first signs of revival of the paper industry, analysts and industry, experts have said.

Swaraj Eng dividend to be 200 pc
CHANDIGARH, May 16 — Swaraj Engines Limited has stepped up dividend to 200 per cent for the financial year 1998-99 against 100 per cent paid for 1997-98.

Upswing may continue
NEW DELHI, May 15 — The current bull run in the capital markets is not a freak case with analysts predicting that the markets will be in the upswing for quite some months to come.

Inflation declines to 78-week low
NEW DELHI, May 16 — Continuing its downward movement for the fifth consecutive week, the annual rate of inflation fell to a 78-week low of 3.70 per cent for the week ended May 1, despite a marginal increase in the wholesale price index.

Court order to MTNL
NEW DELHI, May 16 — A Delhi court has ordered Mahanagar Telephone Nigam Limited to pay Rs 3,000 as compensation to an advocate for delay in installing his phone connection in Tis Hazari.

 

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Foodgrains & sugar rot in FCI godowns

NEW DELHI, May 16 (UNI) — Huge stocks of 11.60 lakh metric tonnes of foodgrains and one lakh tonnes of sugar lying in godowns of the Food Corporation of India (FCI) for more than two years have become unfit for human consumption.

Besides causing a loss to the FCI, these undisposed stocks are creating scarcity in storage capacity for the new bumper wheat crop,which has already crossed the official procurement target of 70 million tonnes, official sources said here today.

The stocks got accumulated as the FCI did not strictly adhere to the principle of FIFO (first in, first out).

In addition to this, the government, till date, has not adopted any clear policy on the disposal of the perished stocks, despite severe strictures passed on it by a parliamentary panel in its report presented to the Lok Sabha in the last session.

The panel was irked over the fact that no countrywide authentic data regarding the storage losses of foodgrains is being maintained by the government. It suggested initiating of a national level project for assessment of storage losses in foodgrains for minimising the grain losses in the future.

On the rotten foodgrain stocks and their accumulation, the Food Ministry shifts the blame to state governments and unavailability of covered storage space.

The foodgrain stocks for the public distribution system (PDS) from FCI depots are being issued on a “first in, first out” principle. However, stocks of old rice got accumulated mainly because state governments were reluctant to lift these stocks under the PDS and other welfare schemes as the old rice did not have presentable appearance due to shredding of bran and presence of small broken rice. Sometimes, labour unrest and unavailability of covered storage space also lead to the deterioration of stocks and hence their accumulation, the officials said.

Besides this, the stocks of rice purchased under relaxed specifications during the crop year 1997-98 were to be issued on over-riding priority which retarded the release of old stocks.

The FCI also has around one million tonnes of wet and sweat sugar which got accumulated because of sugar stocks getting damaged in transit and in the storage due to unavoidable operational reasons, the officials said.

On the other hand the Parliamentary Standing Committee of Food and Civil Supplies stressed the need for reassessment of existing storage space with FCI, creating of additional capacity with construction of more godowns, involving the Central Warehousing Corporation and the private agencies. Modern scientific storage of foodgrains is the immediate need of the country, the committee observed.Top



 

APEC calls for new body to cut capital flow risks

LANGKAWI (Malaysia), May 16 (AP) — The Pacific-rim Finance Ministers today called for the establishment of a new and permanent body, with members from rich and poor nations, to study ways of improving the global financial system and reducing the risks associated with volatile short-term capital flows.

In their final communiqué, the ministers from the 21-member Asia-Pacific Economic Cooperation (APEC) forum called on their deputies to study whether some rules could be imposed on currency traders and hedge-fund operators. They were to present their findings to heads of state at their annual summit in New Zealand in September.

The 16-page statement, however, fell short of calling for the regulation of capital markets, as has been demanded by host Malaysia.

“While we recognise that efforts to reform the international financial architecture will take time, we see the need for the momentum to be maintained, notwithstanding the recent return of stability to financial markets,” the communiqué read.

The ministers called for more transparency and disclosure standards within the member economies, as well as private financial institutions and highly-leveraged hedge-funds.

“We also recognise the need for appropriate transparency by market participants, including highly-leveraged institutions,” the statement said.

Since early yesterday, the finance ministers have been discussing strategies to prevent the kind of crisis which crippled many Asian economies in the last two years. The ministers exhibited signs of optimism that the worst may be over for many of their economies, while recognising that serious challenges lie ahead.

The meeting comes at a time when Asian economies are pulling out of recession, many of them with the help of the IMF packages.

The APEC ministers said since their meeting last year, the financial crisis in the region has abated and there are signs of a return in investor confidence.

A senior US treasury official, who spoke on condition of anonymity, said the ministers focused on both reassuring economic picture and upon aspects of the global financial system, ranging from currency regimes to capital controls.

Malaysia last year imposed curbs on short-term capital flight and a pegged exchange rate, ending offshore trading of its currency, the ringgit. Yesterday, Malaysian Finance Minister Daim Zainuddin called on APEC to take up the challenge of drafting international standards and regulations for hedge-fund operators and currency traders, whom Malaysia blames for much of the Asian economic crisis.

The G-7, through the Switzerland-based bank for international settlements, last year agreed to study the possible regulation of currency speculators.

The USA opposes restrictions on the free flow of capital between markets, believing curbs increase the chances of future crises. But more recently, it has become acutely aware of the dangers of unchecked hedge-fund operations because of the near-collapse of prominent hedge-fund long term capital management.

“Nobody is saying there shouldn’t be any rules,” one senior delegate said after the final session this afternoon. “But there is not yet consensus on how to write them and what will be the right way to do things.”

Mr Kiichi Miyazawa, Japan’s Minister of Finance, who offered support to Asian economies yesterday by helping win new confidence in capital markets through a system of debt guarantees, has suggested that developing countries consider pegging their currency to a basket of other currencies, the US official said.

The US Treasury Secretary-Designate, Lawrence Summers, had previously expressed support for the Japan’s debt guarantee initiative, but indicated Washington still has reservations about any kind of pegged exchange rate system.Top


 

Carpet exports collapse
From Navjot Sidhu

AMRITSAR, May 16 — The carpet industry at Rajasansi, near here, is on the verge of closure due to a fall in exports and a rise in octroi and sales tax.

Mr Joginder Singh, who has been in this trade for the last 30 years, says that about 50 per cent units have closed down as there are virtually no exports. Earlier, carpets were exported to the USA, Germany and England. Carpets consignments go from here but these are not received at the ports and keep lying there for days.

He said if they get their carpet consignments back, they suffer huge losses. They have to pay 12 per cent sales tax and octroi twice — first on the raw material and then on carpets . If they get back unsold carpets, they are again forced to pay octroi.

There are about 25 carpet units in Rajasansi. Six are big ones. Their main sales depend on exports. They do sell to private showroom owners, but the profit margin is lower. A carpet, which actually costs about Rs 4000-6000, is sold by big showrooms at Rs 12,000- 40,000. The sufferers are the manufacturers.

The main carpet made here is “Bukhara”, which is world famous. Persian and Afghani carpets are also made. It takes about a month to prepare a carpet.

Eighty per cent of the carpets are made in villages near Rajasansi. Earlier, the annual turnover was about Rs 6 crore which has now fallen to Rs 3 crore.

In Punjab Amritsar is the main market for carpets. About 25,000 labourers are involved in carpet making. Arjinder Singh, who has been in the business of carpets for the last 10 years, says: “We are unable to pay the labourers as we have no profits. There are no sales. We can only opt to shift from this place.”

Rajasansi, at one stage, was ahead of Pakistan in this business, but now Pakistan is flourishing with government help.

Kuldip Singh, a carpet maker said it is a tough job. “Sometimes our fingers get cuts. But we get Rs 40-60 per day only,” he adds.Top


 

Paper scrips in limelight

NEW DELHI, May 16 (PTI) — Stock prices of major paper companies, including Ballarpur Industries (Bilt)and ITC Bhadrachalam, have outperformed BSE sensex and NSE nifty with returns as high as 119 per cent in the last two weeks, thus showing first signs of revival of the paper industry, analysts and industry, experts have said.

In the last two weeks, scrips of leading paper companies have risen ranging from 43 per cent to 119 per cent compared to 29 per cent increase in sensex and 21 per cent in nifty, mainly due to uptrend in prices and demand.

“Upward trend in paper prices and the bottoming out of the industry have attracted fresh buying in these stocks,” Mr Vipin Aggarwal, a dealer at DBS Securities said.

Following the rise in paper prices, stock of Ballarpur Industries increased by 119 per cent in the last two weeks from Rs 17.7 to Rs 38.8, while Tamil Nadu Newsprint Ltd (TNPL) shares were up from Rs 16.9 to Rs 30.2.

“A rise of 50 paise a kg in paper prices increases turnover of big paper companies like Ballarpur and TNPL by 50 crores thus boosting their bottomline,” Chief Executive of HB Mutual Fund R.K. Gupta said.

Industry experts said that prices of all categories of printing and writing paper was increased by paper manufacturers in April this year.

“Prices of writing and printing paper are in the range of Rs 21.25-23 a kg up compared to Rs 20.30-21.5 a kg in April this year,” P.G. Mukundan, Secretary-General of the Indian Agro Paper Mills Association said.Top


 

Swaraj Eng dividend to be 200 pc
Tribune News Service

CHANDIGARH, May 16 — Swaraj Engines Limited has stepped up dividend to 200 per cent for the financial year 1998-99 against 100 per cent paid for 1997-98. The net profit had jumped 45 per cent to Rs 15.65 crore, raising the EPS to Rs 37.8 from Rs 26.06.

Taking advantage of the increased capacity of Punjab Tractors Limited, Swaraj Engines has raised the engine output to 24,706, a 42 per cent climb over 1997-98 production of 17,418. The production in the last quarter (Jan-Mar ‘99) crossed 7,150 engines.

Despite additional interest and depreciation on expansion outlays, pre-tax profit at Rs 21.8 crore has improved sharply, 54 per cent over last fiscal.

The company incurred an additional expenditure of Rs 7.10 crore on expansion.Top


 

Upswing may continue
From Gaurav Choudhury
Tribune News Service

NEW DELHI, May 15 — The current bull run in the capital markets is not a freak case with analysts predicting that the markets will be in the upswing for quite some months to come.

Most market observers do not expect inflows to dry up suddenly.” Most commodity stocks in India are cheaper on regional valuation basis and the rush to buy them would not reduce suddenly”, a Delhi based broker said.

The current rally is likely to continue for a few months as unlike earlier rallies this time it is not driven by speculators, say brokers.” The market is entering a two-year bull run now. It will stabilise with corrections of 80 to 90 points, but it is unlikely that there could be a crash like situation” an analyst said.

Helped by a steady stream of inflows of foreign funds,there has been a major reversal of trends in share prices as traders are riding on a wave of buying by foreign institutional investors (FIIs) in cyclical and software stocks.

The hectic FII buying has helped recoup most of the Rs 70,000 crore lost in of April due to political uncertainty.

Market observers say the money flowing into India is essentially a part of the entire allocation of FIIs for the emerging and recovering Asian economies.

CEO of Kotak Mahindra C Jayaram said the enhanced money flight to India does not actually reflect what FIIs see in India.

“Essentially more money has been allocated to Asian markets like, Thailand, Korea and funds’ flow to India is actually a part of this allocation”, Mr Jayaram told the TNS adding that the money flow has been primarily driven by recovery in the bigger markets in the region.

“India has become one of the attractive markets for the FIIs as markets in India could not keep pace with the incipient boom in other markets such as Singapore, Thailand and Korea”, a Delhi-based analyst said pointing out that the these markets had outpaced India and hence FIIs are looking towards India to cash in on the opportunities.

The renewed interest in Asia has also been driven by the lack of opportunities in Europe, Latin America and Russia.

There are also tendencies of the recession bottoming out in the rest of the world which is reflected by the rising demand.

Some of the commodity stocks which have received market attention in India are Indian Aluminium, Hindalco, Reliance Industries and Ballarpur Industries.

The political uncertainty also appears to have been relegated to the backdrop mainly because of the fact that the funds flowing into India are part of larger portfolio of FIIs into emerging markets.

The FII funds are primarily flowing into cyclical and software scrips and also into shares of major banks. Observers said that the rally in bank shares has been driven by the cut in the cash reserve ratio (CRR) which became effective from May 8.Moreover, no movement in interest rates would take place before October, when the busy season credit policy will be announced, and the rate of inflation remaining low, the yield from such shares actually increases significantly.

Observers said foreigners are placing there bet on India as it is seen amongst the fastest growing economies in the region and also the fact that the slowdown witnessed in South East Asia will not unduly impact India.

This has convinced them to chase banking and commodity stocks, pushing up indices. Even though commodity stocks have not caught the fancy of the local investors, FII have seen some value in SBI, MTNL, BHEL, refinery and cement stocks, marketmen noted.Top



 

Inflation declines to 78-week low

NEW DELHI, May 16 (PTI) — Continuing its downward movement for the fifth consecutive week, the annual rate of inflation fell to a 78-week low of 3.70 per cent for the week ended May 1, despite a marginal increase in the wholesale price index (WPI).

This is the lowest rate since November 8, 1997, when inflation had touched 3.70 per cent.

Inflation, based on WPI, declined by 0.22 percentage points to 3.70 per cent (provisional) from 3.92 per cent (P) a week ago. Inflation had stood at 6.45 per cent during the corresponding week of the last year.

During the reference week, prices of food product, basic metals, alloys and metal products eased substantially. The index for “all commodities” (base: 1981-82-100), however, increased by 0.2 per cent to 355.8 (provisional) as against 355.1 (p) in the previous week.

Meanwhile, inflation based on the final index for the week ended February 27 stood at 5.3 per cent compared to 5.2 per cent based on the provisional index.

The present decline is mainly due to ease in the prices of maida, atta, suji, solvent extracted groundnut oil, drums and barrels.Top


 

Court order to MTNL

NEW DELHI, May 16 (PTI) — A Delhi court has ordered Mahanagar Telephone Nigam Limited (MTNL) to pay Rs 3,000 as compensation to an advocate for delay in installing his phone connection in Tis Hazari.

President of District Consumer Disputes Redressal Forum at Tis Hazari, P.K. Jain and members G.R. Gupta and Santosh Khanna, who held the MTNL guilty of “deficiency of service”, also asked it to pay Rs 1,000 as cost of litigation to the complainant advocate.

Advocate S. Krishan Anand had accused the MTNL of delaying installation of his phone connection for over a year despite sanctioning his demand in February 1995.Top


 


by Ashok Kumar

Q: Please comment on the prospects of Monsanto Chemicals?

— Montu Agarwal, Shimla

Ans: Monsanto Chemicals of India (MCIL) is one of the leading producers of herbicides used on rice, wheat and tea crops. MCIL markets its herbicides under brand names such as Machete (R), Lasso (R), Avadex (R), Round Up (R) and Monlon (R). The company recorded good results during 1997-98 when its sales rose by 21 per cent to Rs 85.17 crore and net profits almost doubled to Rs 8.63 crore. The reduction in excise duty and import duty on raw materials have also helped to enhance demand and profit margins. The low consumption of herbicides and weedicides in India is due to availability of cheap labour for weeding operations.

MCIL is, reportedly, likely to introduce at least six new formulations as part of a plan to increase its turn-over from Rs 100 crores to Rs 500 crores over the next 5-7 years. Among the new products will be Spark, Polaris and more products in the Round Up category, including the dry version of Round Up. The company is currently carrying out field tests for these products. Moreover, this year, in line with the having off of Monsanto’s Chemicals businesses worldwide into a new company, Solutia, MCIL’s industrial chemicals business is likely to be hived off into a new company a subsidiary of Solutia in India. Thus, MCIL will, henceforth, focus on the crop protection business only. Though the parent also has 100 per cent subsidiaries, it currently does not intend to transfer any of the existing brands from MICL, and these existing bands are strong enough to sustain high growth in the future. Hence, MICL’s prospects appear to be quite promising.

Q: Do you recommend an immediate investment in the shares of Voltas Limited?

— Amrish Shukla, Chandigarh

Ans: Voltas Ltd, a Tata group company was once the leader in the window ACs segment. The company has not been able to retain its position since liberalisation and has been steadily losing out on its market share. Voltas has an excellent distribution network with dealers in all major cities. The company had the advantage of being a big player in the consumer products segment. However, this has also proved to be counterproductive as it is vulnerable to the recession in the white goods segment as 50 per cent of its sales are forwarded from this segment. The changing ambience has badly affected the company’s bottomline. To combat this crisis it has decided to restructure its strategies and cut costs. It has decided to reduce expenses, use extensive information technology and improve overall on all parameters. It has also decided to make a foray in the unexploited areas like railway coaches where other players had a niche. Hence, inspite of a battered bottomline, one can expect it to emerge out of the current crisis. But, for now, a wait and watch attitude would serve best. Prospects seem reasonably satisfactory.

Q: Do you recommend investing in the shares of BHEL at the present price level?

— Birender Das, Ambala

Ans: While the power and capital goods segments witnessed negative growth, Bharat Heavy Electricals Ltd (BHEL) has consistently outperformed its contemporaries. The capacity utilisation across all segments of BHEL was over 70 per cent during 1997-98. With depreciated plants and a phenomenal cash generation of Rs 950 capital investment of Rs 100 crore per annum over the next few years, meet annual debt repayments of Rs 140 crore and even provide suppliers credit. BHEL-built sets now account for 65 per cent of the installed generating capacity in the country. In addition, 12 units equivalent to 249 mw industrial sets were also commissioned during the year. It expects to add 300mw industrial sets during the current financial year. Notably, BHEL bagged all power projects awarded during the previous year under international competitive bidding. The more prestigious orders bagged include NTPC’s 430 mw project, MSEB’s two 210 mw projects, Maharashtra Government’s two 125 mw projects and three 50 mw power plants in Tamil Nadu. It has bagged a major share of prestigious orders for centrifugal compressors and heat exchangers for various refineries. On March 31, 1998, BHEL had an order book of Rs 10,000 crores, of which fresh orders aggregated Rs 5853 crore. BHEL expects a turnover growth of 10 per cent during ‘98-99 with a matching increase in profits. Notably, about half of these orders were executed during ‘98-99. Considering these facts, it would be worthwhile for investors to monitor the share price of this company closely and pouch it at declines.

Q: Could you briefly comment on the prospects of Rama Newsprint and Papers. Should I invest in the shares of this company?

— John Mathai, Chandigarh

Ans: Rama Newsprint and Papers finds itself in a miserable position not only due to the ongoing economic crisis but also on account of the delay in implementing its expansion projects. The company is highly dependent on imported raw materials which account for almost 65 per cent of the company’s raw material requirement. On the financial front too, the company’s performance has been dismal. During the year that ended in March 1998, the company posted sales and net losses of Rs 75.29 crore and Rs 28.68 crore respectively. Furthermore, this company is not a net forex earner and it is unlikely to gain much from the last Union Budget. Overall, its prospects seem unexceptional, and hence an immediate investment is avoidable.

Q: What is your opinion about the future prospects of Cadbury?

— Sameer Kapur, Ludhiana

Ans: Incorporated in 1948, Cadbury India Ltd is a dominant player in the chocolate and malt food segment. The company has several reputed brands such as Dairy Milk, Eclairs, Perk etc. due to which it dominates the chocolate segment with a market share of 70 per cent. In the chocolate-based drinks segment, its brand Bournvita enjoys over a 50 per cent market share. On the financial front the company’s performance has been satisfactory. The company has set up new processing plants at Pune for crumb, chocolate making and moulding capacity expansion for wafer products. Cadbury is one of the leading advertisers and its brands enjoy tremendous visibility and recognition. The company’s latest launch of Picnic in the chocolate segment has been well accepted and the company’s entry into sugar confectionary with a national launch of Googly has a larger market than the market for chocolates. This is mainly due to the parent company’s strong position in this field. On the whole, the future prospects of the company appear to be fairly secure.Top


 

aviation notes
by K.R. Wadhwaney

Will IA fly free?

The privatisation of Indian Airlines (IA) is one thing but freedom to function as a commercial airline is another thing. The decision of the Cabinet Committee on Economic Affairs to allow the domestic carrier to raise funds from the capital market and an infusion of Rs 325 crore as government equity will not help the airline to breathe free. But the turn-around of the carrier will begin only when there is no government interference into day-to-day functioning of the airline.

The privatisation of the airline means that the carrier is free to buy any aircraft from any manufacturer. Will the government allow this or retain its stranglehold?

Following the liberalisation and competition, the domestic carrier has shown an improvement in service. It has also fulfilled its social responsibilities in operating flights to areas and routes which have been unprofitable. In sharp contrast, the private operators have been struggling. Majority of them have died while a few have been surviving but they continue to “default” in making payment to the government.

The survey shows that a number of aircraft are old and they need to be replaced. The airline has floated a global tender for four A-320 aircraft to be taken on dry lease. The additional capacity will help the airline to offer more seats on several uncared-for routes.

Will the government allow the domestic carrier to take its own decisions or indulge in arm-twisting, as it has always done?

Minister for Civil Aviation Ananth Kumar seems to be in a hurry to go through with his proposals, including corporatisation of airports and modernisation of air traffic services and ground infrastructure. The minister’s decisions may be well meaning but will these be okayed when the new government takes over in October.

Ram Kohli honoured

The Managing Director of Creative Travel Ram Kohli was presented with the Pacific Asia Travel Association (PATA) Chairman’s award for his contribution to the travel industry.

Founder President of the Indian Association of Tour Operators and a pioneer in Indian tourism industry, Ram Kohli is also a member of the Board of PATA and a member of the executive committee of the association.

The award was presented at the inaugural session of the association’s meeting in Nagoya (Japan) in the presence of the Japanese Royal family.

New service launched

Speedwing, the information technology arm of British Airways, recently launched second site of World Network Service at Pune.

Steve Dunning, WNS Chairman and Speedwing Managing Director said: “Business in India to date has been a tremendous success for us”. Pune offers us an excellent opportunity to generate new business with suitable infrastructure facilities and convenient travel connections”.Top


 


Videocon Intl

I sent share certificate Nos 002183895, 001681965,00862199 vide regd folio no S0064660 of M/s Videocon Narbada Electronic Ltd to registrar of the campany along with the other documents for exchange into M/s Videocon International Ltd. Despite 6 reminders, I have neither received the share certificate of Videocon International Ltd. nor payment as promised by them.

Satish Kumar Verma
Chandigarh

Intl Comptech

I sent 1000 Nos Shares (10 certificates) to International Comptech Engineering Services Hardik Chambers, Sayaji Ganj, Baroda (Gujarat) on 28.8.1998 (5 certificates) & 4.9.1999 (5 certificates) for transfer in my name. I have not received the certificates after transfer although more than eight months have passed and several reminders sent to the firm.

J.S.Saluja
Ludhiana

US-64

I have not received dividend for the year 1997-98 from UTI for US-64 vide folio no 4000196001157301 and 4000196009204901, despite many reminders to UTI till to date.

Ashwani Katyal
Rohtak

Tinplate

I sent certificate (Scrip No 0092861 Folio No P0828 to Tinplate Co of India Ltd, Regd Office 4, Bankahall Street, Calcutta 700001 for transfer on November, 2, 1998. I have not received certificate despite many requests.

Rajneesh Sehgal
Phagwara

S.M. Finance

I deposited Rs 5,000 as fixed deposit for two years with SM Finance Ltd, New Delhi at Bhikaji Cama Place on April 2, 1996. Maturity amount is Rs 6735. After waiting for a long time I visited the company office for the amount. To my utter surprise and shocking the office was closed. I came to know it is functioning from Mumbai with no address available.

S.C. Taneja
Rohtak

Response

Reference to the complaint of Ms Amarjit Kaur, published in the issue dated April 12, 1999, regarding non-receipt of dividend ‘98 in respect of Mastershares ‘86 Folio No MF 400796. UTI writes that they have advised the unitholder on April 26, 1999, to facilitate issuance of duplicate dividend warrant. On receipt of the duly filled in and signed letter of undertaking, the Registrars have assured to do the needful.Top


 

Grape vine

HPCL & BPCL

AFTER a series of blunders by the Ministry of Finance over the years, asset rich and profitable PSUs have bitten the dust. Take the case of highly potent refinery segment PSUs like HPCL and BPCL — their share prices have plumetted sharply. But wait a minute. A veteran BSE bull operator has begun accumulating these very two scrips. Watch the action as it unfolds.

Gold bond scheme

For all its other shortcomings, the management of SBI must be credited for targeting temple trusts which have vast reserves of gold at their disposal. Traditionally, Indians have been the biggest hoarders of gold and one wonders whether the next Government might jut be tempted into offering a gold amnesty scheme.

Finance Minister

Even before the election campaign has been flagged off, marketmen are already laying bets on who the next Finance Minister will be. If the marketmen had any say in the matter, they would install Jaswant Singh at the helm. Now, does that also indicate who they think will win the elections?

HMT

A well known investment adviser based in Chennai has been advising his clients to start accumulating the shares of HMT. His rationale is interesting — the value of its brand name itself merits a price of Rs 50. Any takers?

Kodak

Considering that this MNC virtually enjoys a monopolistic position in its segment, some industry watchers are a trifle puzzled with the new-found intensity of its brand-building exercise. Could it have anything to do with the rights issue that is round the corner?

FII humour

Why are the FIIs so bullish about the Indian market when there is not even a regular Government in place? As the joke in cocktail circuit goes, the FIIs seem to feel that there will at least be stability for the next four months without any bombshells being dropped by squabbling coalition partners or the ruling party itself! Funny?

ICICI

Reputed to be the most transparent of the big three Indian term lending financial institutions, ICICI’s stock has suddenly become one of the FII favourites of late. Why? Well, its results were a pleasant surprise and its efforts at being high-profile too seems to have paid off.Top



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