Saturday, April 30, 2011

Gujarat Household Invests in Equity at par with Developed Countries

Gujarati people are not only good businessmen, but are good investors as well. According to a A working paper by a faculty of IIMA, Prof Siddhartha Sinha says one out of every four Gujaratis invests in stocks which is six times the national average of India.

The paper says 24.1% Gujarati households invest directly in equity as against the all-India figure of 3.7% households investing in equity. In contrast the neighbouring state Maharastra where the business capital Mumbai comes falls in the bottom five states of the country with only 2.5% household investors participating directly in equity.

Participation of Gujarati households in equity investment is better than some of the developed countries as well like France (15), and Germany (9%). It is remarkable is that the equity participation by Gujarati households is comparable with that of US and Canada, where investor participation rates in the domestic stock markets are 26% and 25% respectively.

Not only direct equity but in bonds and mutual funds investments also the share of Gujarat is higher than most of other states of India. According to the paper, 26.2% Gujarati households invest in bonds, while 17.4% invest in mutual funds. With 34.9%, Gujarat heads the list of Indian states in total investors, followed by Chandigarh with 24.2%, Andhra Pradesh with 24%, Pondicherry with 16.2%, Haryana with 13.6% and Goa with 9.8%.

Friday, April 8, 2011

Some Facts about Anna Hazare and Lok Pal Bill

1.Who is Anna Hazare?

Annna Hazare is an ex-army man, who fought 1965 Indo-Pak War.
Anna Hazare was awarded Padma Bhushan and is a known figure for his social activities. He is supporting a cause, the amendment of a law to curb corruption in India.

2.What's so special about him?
He built a village Ralegaon Siddhi in Ahamad Nagar district, Maharashtra .This village is a self-sustained model village. Energy is produced in the village itself from solar power, bio fuel and wind mills.
 In 1975, it used to be a poverty clad village. Now it is one of the richest village in India. It has become a model for self-sustained, eco-friendly & harmonic village.

3. Why was he agitating and fasting?

He is advocating for a Bil, The Lok Pal Bill (The Citizen Ombudsman Bill), that will form an autonomous authority who will make politicians (ministers), bureaucrats (IAS/IPS) accountable for their deeds.

4. It's an entirely new thing right..?

No, this is pending for almost four decades In 1972, the bill was proposed by then Law minister Mr. Shanti Bhushan. Since then it has been neglected by the politicians and some are trying to change the bill to suit their theft (corruption).

5  Can the bill be passed in such a short span of time?

The first thing he is asking for is: the govt should come forward and announce that the bill is going to be passed. Next, they make a joint committee to DRAFT the LOK PAL BILL. 50% government participation and 50% public participation. Because one can't trust the govt entirely for making such a bill which does not suit them. Otherwise this would have passed long ago.

6.What will happen when this bill is passed?

A LokPal will be appointed at the centre. He will have an autonomous charge, say like the Election Commission of India. In each and every state, Lokayukta will be appointed. The job is to bring all alleged party to trial  in case of corruptions within 1 year. Within 2 years, the guilty will be  punished.

6.Who are most corrupt in India?

Today, corruption is deep rooted in India. It is easy to count on fingers who still not corrupt. But going by degree of corruption, most infected are those who are responsible to book the guilty. In order they are :

1. Politicians    -  Who make the legislation
2. Police          - Who has to book the culprits and maintain law and order
3. Judiciary      -  Who has to make the impartial judgement

Input received from Mr Nikhil Zaveri

Related Posts  :

Gujarat to have more courts for speedy judgements

Wikileaks Boonranged Congress

Monday, April 4, 2011

Did Gujarat Govt Pressurized SEWA?

The new Wikileak cable alleges Gujarat Chief Minister Narendra Modi about pursuing a divide and rule agenda even in 2005 and holding the funds of an NGO to pressurize.

The cable sent by the United States Consul General in Mumbai, Michael Owen, in 2005, quoted Self-Employed Women's Association (SEWA) general secretary Reemaben Nanawati telling him that the organisation was facing the wrath of the State government for resisting pressure.

The NGO executive further added that the State government was trying to project an air of normality after the 2002 communal riots, but politically it was still on the path of dividing Society on religious line . She also claimed that as a result of resisting fiercely to keep the communal harmony intact in the organisation, the NGO had to face the wrath of the Gujarat Government and over 12,000 of their volunteers who were extremely poor did not receive funds for over 6 months that year.

This is the third cable leaked involving Modi government in last fifteen days. In another cable leaked two weeks ago this Consulate General who praised Modi for being 'incorruptible, which was given high coverage by the local media.

Head Quarter of SEWA is in Ahmedabad and its major activities are spread in the rural areas of North and Central Gujarat.  The organization is working for the up liftment of the women of weaker section of the society.

Related Posts  :
Alba Collectives of Finland joins SEWA
Wiki leaks Boomeranged Congress
SEWA Members grow Coloured- Cotton

Result Season to Guide Market Ahead

The new financial year has begun and corporate financial teams are busy preparing their final numbers, which are going to give guidance to the investment market for the full year. Last week of March and beginning of April shows that investor confidence is positive. Hopefully Banks, Capital Goods and IT companies would keep their investors happy with the overall performance.

Though small compared to TCS and Infosys, HCL Tech may post growth much higher than its big brothers in the industry. With estimated PBDIT of above Rs 700 Cr Y-o-Y growth would be about 30% which is  higher than even TCS and much ahead of Infosys. Hot Infosys is expected to have a Net profit of Rs 1,900 Cr. TCS with a sales of Rs 10,500 Cr will continue to hold its position as the largest IT company. In the year ahead, this segment is expecting revival of outsourcing and higher growth than 2010. Depreciating rupee helps this sector most.

Turn around in the story of Siemens will provide relief to the Capital goods market. L&T and BHEL both had good order book position which will get reflected in the results with a growth of more than 20% in net profit, but future trend is not so easy with Chinese competition and increased input costs. Both L&T and BHEL would post sales of Rs 16,000 Crore plus. The delays in project decision due to Mega Economical reasons in the country will affect the prospects of this segment. Confusing environmental guidelines fuel to the indecisiveness of the companies and loser is the capital goods segment. BHEL is expected to miss the order flow target of Rs 60,000 crore for the year ended March 2011.

The auto sector reported another quarter of brisk demand, but the concerns regarding rising cost will continue to haunt the sector in the March 11 quarter. Most likely to get hit is the nation’s favourite Maruti Suzuki. It is likely to have a net profit down by about 25% on y-o-y basis. This quarter profit for the company is likely to be below Rs 500 cr. In contrast, Tata Motors on a consolidated basis is expected to report an improved performance in the quarter, helped by strong demand conditions for its marque JLR brand in emerging markets

The banking sector is expected to show a robust year-on-year net profit growth of 18% due to improvement in credit demand and stable asset quality of the banks. The credit deposit ratio of banks which rose from 70.82% in February 2010 to 74.95% in Feb 2011 is also expected to come down this quarter due to expected acceleration in deposit growth. All major banks like SBI, Axis Bank, HDFC, BOB are likely to post much higher net profits, but for ICICI PBDIT is predicted to be negative. Increasing interest rates are putting pressure on treasury gains.

Increasing competition and rise in advertisement expenses put the FMCG companies in low growth area. Small companies like Godrej Consumer, Dabur and Marico are struggling to maintain market share and margins. ITC and HUL are relatively more comfortable in the domestic market.

Related Posts :

Saturday, April 2, 2011

Life of Godmother comes to an End

The lady gangster, Santokben Jadeja whose name evoked fear in the minds of people in Porbandar and Saurastra during 80s and 90s died on the fool’s day of Cardiac arrest. She challenged the male dominance both in underworld and politics and became a threat to the peace loving image of the Gujarat state.

Porbandar, the birth place of Mahatma Gandhi who preached the message of non violence became the land of gang wars and parallel governance. Sarman Munja a leader of local “Mer” Community, transformed himself from a mere mill worker at Maharana Mills to the don of illegal mining and transport business..

The early lessons of crime were learnt at the Maharana Mills where its owner Nanji Kalidas Mehta hired Vagher gang to smash the labour movement. Sarman and his maternal uncle gunned down Devu Vagher and entered to the furious world of crime. Thereafter, there was no looking back. Sarman acquired the title of Robinhood by its community members.

Till 1986 Santokben was playing the role of a home maker and a mother. Under the influence of late Pandurang Shastri of the Swadhyay movement he decided to farewell to arms and crime. But, the rival gangs did not accepted this. On a chilly night in December 1986 he was shot dead at Bakharala village by the Kala Keshav gang.

This incident changed the life of Santokben who took to the path, which Sarman had given up to avenge her husband's death. Selected 100 mer community members formed her gang. Soon her gang and its terror expanded as she extended control over illegal limestone, mining and transport businesses in the area.
A Scene from Film Godmother

Her life inspired bollywood to make the film “Godmother”, the title she carried rest of her life. In the film Shbana Azmi played her character and Milind Gunaji played Sarman. In real life her three of the four sons took command of the gangs and she took the responsibility of liaison with state politicians. In public she moved around with her sons and a few female bodyguards.

Her closeness to Chimanbhai Patel’s political outfit saw her rise as political power in the coastal region of Gujarat. She was an MLA from 1990 to 1995. , Santokben was the first and only woman from Porbadar district to be elected to the state assembly in 1989. With the demise of Chimanbhai Patel her political career saw the downward slope. In December 2002 she filed her nomination papers for the Kutiyana assembly seat but later withdrew in favour of the Congress candidate.

Rest of her life was full of controversies. More than 500 serious criminal cases were filed against her gang members. Nine of these cases, including those of murder, were against Godmother herself. She also faced a case under TADA. Her name surfaced in the murder of Keshu Odedara, a BJP councillor of Porbandar municipality in 2005.

Some of her family members were convicted in the case and were sent to jail. Godmother Santokben Jadeja before two years in 2009 was worried that her son might be killed by police in fake encounter. She had asked for help from Human Rights Commission, Chief Minister Narendra Modi and chief justice of Gujarat High Court. This year in February the additional sessions court had acquitted Jadeja family members in this case giving benefit of doubt.
Her son Kandhal Jadeja was arrested in connection with his wife Rekha Jadeja's murder. According to police records, the incident took place during early morning hours on May 20 in 2005, when unidentified assailants pumped at least ten bullets into Rekha's body and fled immediately after committing the crime. The police investigation was around the theory of family dispute over the succession of Godmother on its business.

All these controversies have come to an end and in minds of people Santokben Jadeja will remain as the character of Rambhi played by Shabana Azmi on Silver screen in Godmother.

Related Posts :

Gujarat to have more courts

Legal battle likely over SIT next month