Seasonal Magazine - September 2014 Issue by John Antony

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India’s Best Prime Minister in the Making?

Managing Editor Jason D Pavoratti Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D

Can Modi become the best ever Prime Minister India ever had? His unique speech on Independence Day prove that he does have that ambition. Though he is only 90 days into the job, he has matured. When he first entered Parliament, he had remarked that the previous government did whatever they could and that he was not going to focus on their faults. But in his maiden Independence Day speech as PM, he showed even more maturity and understanding by acknowledging the roles of all well-performing Prime Ministers before him. Yes, indeed, there is much to learn from their good sides for any PM including Modi.

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EDITORIAL

Nehru’s Institution Building Long before he became the first PM of India, Nehru was determined to steer Congress and India towards a socialist path. This was not as easy as it sounds today, because Congress was full of economically right-wing stalwarts like Sardar Patel, Dr. Rajendra Prasad, & C Rajagopalachari. But Nehru had the unflinching support of Gandhi to follow a socialist path, as well as support from left-wing leaders like Maulana Azad and Subash Chandra Bose. Nehru systematically destroyed Congressmen’s capitalist ambitions, but his genius was that he did so by winning over all detractors and giving them prominent positions in the government. The result was Independent India’s most profound successes like its unique and gigantic Public Sector, its mixed-economy, the agrarian revolution, as well as the Non Aligned Movement that saw both West and Soviet Union competing to fund and technically aid PSU projects here. Nehru was an institution-builder par excellence, and apart from the huge PSUs he built in steel, power, & coal, it was his vision that saw educational institutions of world repute like AIIMS, IITs, IIMs, NITs, & various Agricultural Universities. All within a period of 17 years. And the greatest achievement of them all was that all these institutions were placed across the country and not just in the Hindi heartland. A good point for Modi to start will be attaining Nehru’s momentum in rapid institution building, even if they are in the private sector.

Shastri’s Agricultural Revolution

Nehru’s death again brought the right-wing / left-wing conflict to the fore, and the majority favoured Shastri, a strong socialist to take up power, mainly to prevent the capitalist Morarji Desai from staking his claim to the top post. Shastri continued Nehru’s legacy of socialist development for the masses with his most notable achievements being the White Revolution for milk production and Green Revolution for the grains. Both went on to become huge successes. Shastri is noted in history for backing iconic projects like Amul, National Dairy Development Board, Food Corporation of India, and the National Agricultural Products Board - all of them making lasting contributions to the Indian nation. Unlike his soft-spoken nature, he was a man of momentum and these huge achievements were made during a tenure of less than 2 years! But Shastri’s biggest success was winning the Indo-Pakistan War of 1965, against all odds, including a belligerent Chinese stand. He inspired the whole nation with his ‘Jai Jawan Jai Kisan’ slogan for a decisive win that would haunt Pakistan for ever. Shastri’s exhortations to the public to shun one meal was so influential that even hotels across the country closed down during those times. Other noted contributions of Shastri include blocking the forced adoption of Hindi as the official working language, and India’s first Integral Coach Factory that ushered in self-reliance for Indian Railways. Modi has a lot to learn from Shastri when it comes to agricultural success and how to deal powerfully with Pakistan and China.

Indira’s Strategy Towards Enemies Next-Door Indira had served as Chief of Staff at Nehru’s PMO for long, and had an offer from then Congress President Kamraj to take on the mantle of PM immediately after Nehru’s death. Instead, she chose to be a Minister under Shastri. Though not as uncontroversial as Nehru or Shastri, this first and only lady PM’s achievements would be difficult to surpass for any gentleman PM past or future including Modi. Her greatest achievement was dividing Pakistan forever into Pakistan and Bangladesh, and thereby ending the enemy’s all encompassing presence from West and East. That is how India emerged as the undisputed military power of the subcontinent. An equally powerful move by Indira was to authorize the development of

nuclear weapons to counter China’s nuclear capabilities. She gave the authorization in 1967 and by 1974 Pokhran was ready, stunning China, Pakistan, and even USA. On the economic front, Indira’s greatest successes were the nationalization of 13 major commercial banks and the nationalization of the foreign oil companies to form Indian Oil, Bharat Petroleum, & Hindustan Petroleum. While the former was designed to take financial inclusion to a new level, the latter was her bitter response to foreign oil companies’ unacceptable stand of refusing fuel to Indian forces during the war with Pakistan. Both programs are hugely credited with fortifying Government’s presence in vital sectors like banking and petroleum. Modi or any future PM could learn a lot from Indira’s stunningly bold strategies that showed to deep-trenched vested interests in the private sector what an Indian government can do.

Morarji’s Pursuit of Peace From early on in his career, Morarji Desai was a Gandhian and one of the prominent critics of Nehruvian socialism. Despite his enormous clout in the economically right-wing faction of Congress, he was defeated first by Shastri and then by Indira for leadership in the parliamentary party. His moment of glory as PM would come after the formation of Janata Party. His lasting contributions to nation building include the conversion of India’s nuclear program to a largely civil program directly beneficial to the nation. Another major contribution was the amendments that he brought to the Indian Constitution that made it difficult for any future PM to declare an Emergency. Desai was exceptionally successful in bettering relations with both China and Pakistan. Despite being almost a capitalist, his policy to enforce MNCs to have an Indian company as partner, led to the high-profile exits of IBM and Coca Cola. But Desai was firm in his conviction that it was the best way for Indian industry. Modi can learn a lot from this fellow-Gujarati while tackling the MNCs.

Rajiv’s Flair to Modernise India Rajiv Gandhi’s achievements were dwarfed inevitably by the high successes of Nehru, Shastri, & Indira. Yet, he was the Indian PM who facilitated India’s entry into the tech league, including facilitating the first US tech firm Texas Instruments to set shop in Bangalore, as well as the initial deals of TCS-Wipro-

Infosys with global giants like GE. However, Rajiv’s greatest success was his ushering in of the telecom revolution, which later inevitably led to the mobile era, much in tune with the West. It was Rajiv who also laid the foundations for the end of licence raj. The lesson from Rajiv to Modi is sweet and simple, and is something that Modi already embraces - modernise India.

VP Singh’s Social and Communal Justice Vishwanath Pratap Singh ruled as India’s PM for only less than a year, but the legacy which he left was of a longer impact. VP Singh proved that even something as huge as Reliance Industries could be tamed by a Government if it has a will. His conviction for social justice witnessed in the Mandal Commission Report implementation, and his conviction for communal harmony witnessed in the Ram Temple issue, are lessons for Modi to emulate any day.

prime minsters of India, especially on the economic and infrastructure front. Vajpayee’s term as PM saw the maximum achievement ever in the development of highways infrastructure, which was a prerequisite for national development. Vajpayee continued with Rao’s market friendly policies, setting the stage for a huge bull run in the market that maintained momentum even after he quit office. Vajpayee was the man who executed yesterday much of what Modi speaks of today, like huge infrastructure development, and as such it would pay for Modi to learn how Vajpayee did this magic.

Dr. Singh’s Economic Focus

Rao is the undisputed Father of Indian Economic Reforms that kick-started growth to a new orbit. He was so revolutionary in his thinking so as to assign the role of FM to a professional like Dr. Manmohan Singh, and Rao is also credited with finally dismantling the licence raj forever. Modi would serve India best by emulating the policies of this one PM.

There may be many who argue that Dr. Singh was a better FM under Rao than a PM under Sonia. Because, it was Dr. Singh as FM who carried out most of the modern structural reforms in the Indian economy, that opened it up and laid the foundation for robust wealth creation in its capital market. But Dr. Singh’s tenure as PM for two consecutive terms would have its fair share of successes. These include the Rural Health Mission, the Unique Identification Authority or Aadhar, the National Rural Employment Guarantee Scheme (NREGA), the Right to Information Act, Polio Eradication, and the historic Civil Nuclear Agreement with the United States. The best lesson Modi can learn from Dr. Singh is to always have an economic focus while governing this country.

Vajpayee’s Ability to Execute

John Antony

Rao’s Ability to Launch a Revolution

Vajpayee was one of the most successful SEASONAL MAGAZINE

CONTENTS

SENSEX PARTY OVER. PERFORMERS’ PARTY BEGINS! WILL SMEs AND OAEs GET THE DESERVING FOCUS? The national discourse is so superficial that it only talks of foreign direct investment, investment allowance, tax sops and the like which are just about a twentieth to a sixth of the national economy. It did not even notice..

How Blood Donation is Heart Healthy Donating blood could be an easy way to reduce your risk of heart disease.

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Is This the Unknown Way in Which Exercise Improves Health the Most? Being physically active may encourage beneficial germs to thrive in your gut, while inactivity could do the reverse, according to a new study. The findings suggest that, in..

Modi Reveals an Unknown Good Side: Jeet Bahadur This has indeed been a year of wondrous revelations. First Narendra Modi admitted in his election filing document he had a wife. Now we find out he has a godson as well.

It takes political will to move markets, and Modi did that. Almost every stock surged without any regard for its intrinsic value. But Modi is not staying put at the party he began. With many crucial state elections just around the corner, India’s PM has got other priorities like attending to its poor and attending to its farmers, who make up more than half of India. That is why the Modi-Jaitley budget signalled the beginning of the end for the Sensex party. Many industry associations like the gold retailers and the realty/infra players learned it the hard way, when many of their requests fell on deaf ears at Finance Ministry.

ADHD Does Not Exist

Dr. Richard Saul, a behavioral neurologist practicing in the Chicago area, is creating ripples with his provocatively titled book, 'ADHD Does Not Exist', published by HarperCollins. Here Dr. Saul shares the core ideas behind his revolutionary work on..

Raghuram Rajan Defends Bankers, Warns of a Global Market Crash Reserve Bank Governor Raghuram Rajan has cautioned that the arrest of Syndicate Bank chairman in a bribery scandal should not..

Right or Wrong? 7 Reasons Why India is Right, 9 Reasons Why WTO is Right India’s stand may seem unpalatable to developed countries. But there’s cause for them to come around argues Asit Ranjan in LiveMint. Tom Miles in Reuters provide the counter argument.

How 'Open Source Everything' Will Transform Earth The man who trained more than 66 countries in open source methods calls for reinvention of intelligence to reengineer Earth. Robert David Steele's latest book-The Open-Source Everything Manifesto: Transparency, Truth and Trust - predicts that an..

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Is Jacques Kallis Greater Than Lara, Tendulkar, Warne, and Ponting? When Jacques Kallis finally admitted that the 2015 World Cup will be a bridge too far for him, the cricketing world was not shocked. The 38-year old Kallis' retirement from ODIs was very much expected, after his..

Run for Your Life, But Just 7 Minutes a Day is Enough A simple seven-minute run has now been found to cut the risk of a heart attack or death due to stroke by 55%.

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CONTENTS Why Kochi Marine Drive Homes Remain in High Demand? Is it about Kochi or is it about Marine Drive? Which is hotter? Definitely, it is Kochi, right? PricewaterhouseCoopers predicts that Kochi will be one of the 6 tier-II cities to benefit..

7 Documents to Check Before Buying Any Apartment What factors do you look for, while comparing apartments? Without any doubt, the property’s location, price and possession, will be the first and foremost parameters..

Honda Mobilio Test Driven Though Honda has a fairly extensive range of MUVs in its global market, the Mobilio, with its relatively compact proportions, seems like a logical choice for India and south east Asia. Built on an extended version of the Brio platform, the MUV uses..

Is Aquaponics the Future of Agriculture? Aquaponics is a food production system that combines conventional aquaculture (raising aquatic animals such as snails, fish, crayfish or prawns in tanks) with hydroponics (cultivating plants in water) in a symbiotic environment. In normal aquaculture, excretions from the animals being raised can accumulate in the water, increasing toxicity.

Petrol/Diesel Price Fixing Faulty, Says CAG A comptroller and auditor general audit report on pricing of petroleum products by public sector oil marketing companies, tabled in Parliament recently, says the present pricing mechanism benefited them by Rs 50,513 crore during the five year period of 2007-12...

Why Blame Only Sonia for the Pandora’s Box? For want of a proper name for the genre of these memoirs, the works of Sanjaya Baru and Natwar Singh should fall into the “M O Mathai school of kicking the corpse” books. Just before..

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Without 7 Hours Sleep, Your Brain Shrinks The less older adults sleep, the faster their brains age. Those who slept fewer hours showed decline in cognitive performance..

Get Angry or Bottle Up? Feeling angry? Let it all out, punch a pillow, blow off steam, but don’t keep it in, right? As Claudia Hammond discovers the evidence is far more complicated.

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PA R E N T I N G

ADHD DOES NOT Exist 10

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r. Richard Saul, a behavioral neurologist practicing in the Chicago area, is creating ripples with his provocatively titled book, 'ADHD Does Not Exist', published by HarperCollins. Here Dr. Saul shares the core ideas behind his revolutionary work on Attention Deficit Hyperactivity Syndrome (ADHD). Over the course of my career, I have found more than 20 conditions that can lead to symptoms of ADHD, each of which requires its own approach to treatment. Raising a generation of children and now adults who can't live without stimulants is no solution. This Wednesday, an article in the New York Times reported that from 2008 to 2012 the number of adults taking medications for ADHD increased by 53% and that among young American adults, it nearly doubled. While this is a staggering statistic and points to younger generations becoming frequently reliant on stimulants, frankly, I’m not too surprised. Over my 50-year career in behavioral neurology and treating patients with ADHD, it has been in the past decade that I have seen these diagnoses truly skyrocket. Every day my colleagues and I see more and more people coming in claiming they have trouble paying attention at school or work and diagnosing themselves with ADHD. If someone finds it difficult to pay attention or feels somewhat hyperactive, attention-deficit/ hyperactivity disorder has those symptoms right there in its name. It’s an easy catchall phrase that saves time for doctors to boot. But can we really lump all these people together? What if there are other things causing people to feel distracted? I don’t deny that we, as a population, are more distracted today than we ever were before. And I don’t deny that some of these patients who are distracted and impulsive need help. What I do deny is the generally accepted definition of ADHD, which is long overdue for an update. In short, I’ve come to believe based on decades of treating patients that ADHD — as currently defined by

Dr. Richard Saul the Diagnostic and Statistical Manual of Mental Disorders (DSM) and as understood in the public imagination — does not exist. Allow me to explain what I mean. Ever since 1937, when Dr. Charles Bradley discovered that children who displayed symptoms of attention deficit and hyperactivity responded well to Benzedrine, a stimulant, we have been thinking about this “disorder” in almost the same way. Soon after Bradley’s discovery, the medical community began labeling children with these symptoms as having minimal brain dysfunction, or MBD, and treating them with the stimulants Ritalin and Cylert. In the intervening years, the DSM changed the label numerous times, from hyperkinetic reaction of childhood (it wasn’t until 1980 that the DSM-III introduced a classification for adults with the condition) to the current label, ADHD. But regardless of the label, we have been giving patients different variants of stimulant medication to cover up the symptoms. You’d think

that after decades of advancements in neuroscience, we would shift our thinking. Today, the fifth edition of the DSM only requires one to exhibit five of 18 possible symptoms to qualify for an ADHD diagnosis. If you haven’t seen the list, look it up. It will probably bother you. How many of us can claim that we have difficulty with organization or a tendency to lose things; that we are frequently forgetful or distracted or fail to pay close attention to details? Under these subjective criteria, the entire U.S. population could potentially qualify. We’ve all had these moments, and in moderate amounts they’re a normal part of the human condition. However, there are some instances in which attention symptoms are severe enough that patients truly need help. Over the course of my career, I have found more than 20 conditions that can lead to symptoms of ADHD, each of which requires its own approach to treatment. Among these are sleep disorders, undiagnosed vision and SEASONAL MAGAZINE

hearing problems, substance abuse (marijuana and alcohol in particular), iron deficiency, allergies (especially airborne and gluten intolerance), bipolar and major depressive disorder, obsessive-compulsive disorder and even learning disabilities like dyslexia, to name a few. Anyone with these issues will fit the ADHD criteria outlined by the DSM, but stimulants are not the way to treat them. What’s so bad about stimulants? you might wonder. They seem to help a lot of people, don’t they? The article in the Times mentions that the “drugs can temper hallmark symptoms like severe inattention and hyperactivity but also carry risks like sleep deprivation, appetite suppression and, more rarely, addiction and hallucinations.” But this is only part of the picture. First, addiction to stimulant medication is not rare; it is common. The drugs’ addictive qualities are obvious. We only need to observe the many patients who are forced to periodically increase their dosage if they want to concentrate. This is because the body stops producing the appropriate levels of neurotransmitters that ADHD meds replace — a trademark of addictive substances. I worry that a generation of Americans won’t be able to concentrate without this medication; Big Pharma is understandably not as concerned. Second, there are many side effects to ADHD medication that most people are not aware of: increased anxiety, irritable or depressed mood, severe weight loss due to appetite suppression, and even potential for suicide. But there are also consequences that are even less well known. For example, many patients on stimulants report having erectile dysfunction when they are on the medication. Third, stimulants work for many people in the short term, but for those with an underlying condition causing them to feel distracted, the drugs serve as Band-Aids at best, masking and sometimes exacerbating the source of the problem. In my view, there are two types of people who are diagnosed with ADHD: 12

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those who exhibit a normal level of distraction and impulsiveness, and those who have another condition or disorder that requires individual treatment. For my patients who are in the first category, I recommend that they eat right, exercise more often, get eight hours of quality sleep a night, minimize caffeine intake in the afternoon, monitor their cell-phone use while they’re working and, most important, do something they’re passionate about. Like many children who act out

irst, addiction to stimulant medication is not rare; it is common. The drugs’ addictive qualities are obvious. We only need to observe the many patients who are forced to periodically increase their dosage if they want to concentrate.

because they are not challenged enough in the classroom, adults whose jobs or class work are not personally fulfilling or who don’t engage in a meaningful hobby will understandably become bored, depressed and distracted. In addition, today’s rising standards are pressuring children and adults to perform better and longer at school and at work. I too often see patients who hope to excel on four hours of sleep a night with help from stimulants, but this is a dangerous, unhealthy and unsustainable way of living over the long term. For my second group of patients with severe attention issues, I require a full evaluation to find the source of the problem. Usually, once the original condition is found and treated, the ADHD symptoms go away. It’s time to rethink our understanding of this condition, offer more thorough diagnostic work and help people get the right treatment for attention deficit and hyperactivity. SM (Credit: Time)

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P R O P H E C Y

How 'Open Source Everything' Will Transform Earth

The man who trained more than 66 countries in open source methods calls for re-invention of intelligence to re-engineer Earth. Robert David Steele's latest book-The Open-Source Everything Manifesto: Transparency, Truth and Trust - predicts that an 'open source everything' strategy, as against the current secretive culture, will bring in the much-needed socio-economic revolution across the globe. Dr. Nafeez Ahmed, an international security journalist and academic, as well as author of 'A User's Guide to the Crisis of Civilization: And How to Save It' writes on Steele's unique mission to transform earth. obert David Steele, former Marine, CIA case officer, and US co-founder of the US Marine Corps intelligence activity, is a man on a mission. But it's a mission that frightens the US intelligence establishment to its core. With 18 years experience working across the US intelligence community, followed by 20 more years in commercial intelligence and training, Steele's exemplary career has spanned almost all areas of both the clandestine world. Steele started off as a Marine Corps infantry and intelligence officer. After four years on active duty, he joined the CIA for about a decade before cofounding the Marine Corps Intelligence Activity, where he was deputy director. Widely recognised as the leader of the Open Source Intelligence (OSINT) paradigm, Steele went on to write the handbooks on OSINT for NATO, the US Defense Intelligence Agency and the U.S. Special Operations Forces. In passing, he personally trained 7,500 officers from over 66 countries. In 1992, despite opposition from the CIA, he obtained Marine Corps permission to organise a landmark international conference on open 14

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source intelligence â&#x20AC;&#x201C; the paradigm of deriving information to support policy decisions not through secret activities, but from open public sources available to all. The conference was such a success it brought in over 620 attendees from the intelligence world. But the CIA wasn't happy, and ensured that Steele was prohibited from running a second conference. The clash prompted him to resign from his position as second-ranking civilian in Marine Corps intelligence, and pursue the open source paradigm elsewhere.

He went on to found and head up the Open Source Solutions Network Inc. and later the non-profit Earth Intelligence Network which runs the Public Intelligence Blog. I first came across Steele when I discovered his Amazon review of my third book, The War on Truth: 9/11, Disinformation and the Anatomy of Terrorism. A voracious reader, Steele is the number 1 Amazon reviewer for non-fiction across 98 categories. He also reviewed my latest book, A User's Guide to the Crisis of Civilization, but told me I'd overlooked an important early work 'A More Secure World: Our Shared Responsibility, Report of the UN High-Level Panel on Threats, Challenges, and Change.' Last month, Steele presented a startling paper at the Libtech conference in New York, sponsored by the Internet Society and Reclaim. Drawing on principles set out in his latest book, The Open Source Everything Manifesto: Transparency, Truth and Trust, he told the audience that all the major preconditions for revolution set out in his 1976 graduate thesis were now present in the United States and Britain. Steele's book is a must-read, a powerful yet still pragmatic roadmap to a new civilisational paradigm that simultaneously offers a trenchant, unrelenting critique of the prevailing global order. His interdisciplinary 'whole systems' approach dramatically connects up the increasing corruption, inefficiency and unaccountability of the intelligence system and its political and financial masters with escalating inequalities and environmental crises. But he also offers a comprehensive

TOD AY'S CCAPIT APIT ALISM, HE ARGUE TODA APITALISM, ARGUESS , IS INHERENTL ATOR TIVE INHERENTLYY PRED PREDA ORYY AND DE DESSTRUC TRUCTIVE

vision of hope that activist networks like Reclaim are implementing today. "We are at the end of a five-thousandyear-plus historical process during which human society grew in scale while it abandoned the early indigenous wisdom councils and communal decision-making," he writes in The Open Source Everything Manifesto. "Power was centralised in the hands of increasingly specialised 'elites' and 'experts' who not only failed to achieve all they promised but used secrecy and the control of information to deceive the public into allowing them to retain power over community resources that they ultimately looted." Today's capitalism, he argues, is inherently predatory and destructive: "Over the course of the last centuries, the commons was fenced, and everything from agriculture to water was commoditised without regard to the true cost in non-renewable resources. Human beings, who had spent centuries evolving away from slavery, were re-commoditised by the Industrial Era." Open source everything, in this context, offers us the chance to build on what we've learned through industrialisation, to learn from our mistakes, and catalyse the re-opening of the commons, in the process breaking the grip of defunct power structures and enabling the possibility of prosperity for all. "Sharing, not secrecy, is the means by which we realise such a lofty destiny as well as create infinite wealth. The wealth of networks, the wealth of knowledge, revolutionary wealth - all can create a nonzero win-win Earth that works for one hundred percent of humanity. This is the 'utopia' that Buckminster Fuller foresaw, now within our reach." The goal, he concludes, is to reject: "... concentrated illicitly aggregated and largely phantom wealth in favor of community wealth defined by community knowledge, community sharing of information, and community definition of truth derived in transparency and authenticity, the latter being the ultimate arbiter of shared wealth." SEASONAL MAGAZINE

Despite this unabashedly radical vision, Steele is hugely respected by senior military intelligence experts across the world. As a researcher at the US Army War College's Strategic Studies Institute, he has authored several monographs advocating the need for open source methods to transform the craft of intelligence. He has lectured to the US State Department and Department of Homeland Security as well as National Security Councils in various countries, and his new book has received accolades from senior intelligence officials across multiple countries including France and Turkey. Yet he remains an outspoken critic of US intelligence practices and what he sees as their integral role in aggravating rather than ameliorating the world's greatest threats and challenges. This week, I had the good fortune of being able to touch base with Steele to dig deeper into his recent analysis of the future of US politics in the context of our accelerating environmental challenges. The first thing I asked him was where he sees things going over the next decade, given his holistic take. "Properly educated people always appreciate holistic approaches to any challenge. This means that they understand both cause and effect, and intertwined complexities," he said. "A major part of our problem in the public policy arena is the decline in intelligence with integrity among key politicians and staff at the same time

that think tanks and universities and non-governmental organisations have also suffered a similar intellectual diminishment. "My early graduate education was in the 1970's when Limits to Growth and World Federalism were the rage. Both sought to achieve an over-view of systemic challenges, but both also suffered from the myth of top-down hubris. What was clear in the 1970s, that has been obscured by political and financial treason in the past halfcentury, is that everything is connected â&#x20AC;&#x201C; what we do in the way of paving

HE REMAINS AN OUTSPOKEN CRITIC OF US INTELLIGENCE PRACTICES AND WHAT HE SEES AS THEIR INTEGRAL ROLE IN AGGRAVATING RATHER THAN AMELIORATING THE WORLD'S GREATEST THREATS AND CHALLENGES.

over wetlands, or in poisoning ground water 'inadvertently' because of our reliance on pesticides and fertilisers that are not subject to the integrity of the 'Precautionary Principle,' ultimately leads to climate catastrophes that are acts of man, not acts of god." He points me to his tremendous collection of reviews of books on climate change, disease, environmental degradation, peak oil, and water scarcity. "I see five major overlapping threats on the immediate horizon," he continues. "They are all related: the collapse of complex societies, the acceleration of the Earth's demise with changes that used to take 10,000 years now taking three or less, predatory or shock capitalism and financial crime out of the City of London and Wall Street, and political corruption at scale, to include the west supporting 42 of 44 dictators. We are close to multiple mass catastrophes." What about the claim that the US is on the brink of revolution? "Revolution is overthrow â&#x20AC;&#x201C; the complete reversal of the status quo ante. We are at the end of centuries of what Lionel Tiger calls 'The Manufacture of Evil,' in which merchant banks led by the City of London have conspired with captive governments to concentrate wealth and commoditise everything including humans. What revolution means in practical terms is that balance has been lost and the status quo ante is unsustainable. There are two 'stops' on greed to the nth degree: the first is the carrying capacity of Earth, and the second is human sensibility. We are now at a point where both stops are activating." It's not just the US, he adds. "The preconditions of revolution exist in the UK, and most western countries. The number of active pre-conditions is quite stunning, from elite isolation to concentrated wealth to inadequate socialisation and education, to concentrated land holdings to loss of authority to repression of new technologies especially in relation to energy, to the atrophy of the public sector and spread of corruption, to media dishonesty, to mass unemployment of young men and on

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and on and on." So why isn't it happening yet? "Preconditions are not the same as precipitants. We are waiting for our Tunisian fruit seller. The public will endure great repression, especially when most media outlets and schools are actively aiding the repressive meme of 'you are helpless, this is the order of things.' When we have a scandal so powerful that it cannot be ignored by the average Briton or American, we will have a revolution that overturns the corrupt political systems in both countries, and perhaps puts many banks out of business. Vaclav Havel calls this 'The Power of the Powerless.' One spark, one massive fire." But we need more than revolution, in the sense of overthrow, to effect change, surely. How does your manifesto for 'open source everything' fit into this? "The west has pursued an industrialisation path that allows for the privatisation of wealth from the commons, along with the criminalisation of commons rights of the public, as well as the externalisation of all true costs. Never mind that

DE SPITE THIS UNAB ASHEDL ADIC AL DESPITE UNABA SHEDLYY RRADIC ADICAL VISION, STEELE IS HUGEL SPE CTED HUGELYY RE RESPE SPEC BY SENIOR MILIT AR MILITAR ARYY INTELLIGENCE CRO ORLD EXPER CROSSS THE W WORLD ORLD.. XPERTTS AACRO fracking produces earthquakes and poisons aquifers – corrupt politicians at local, state or province, and national levels are all too happy to take money for looking the other way. Our entire commercial, diplomatic, and informational systems are now cancerous. When trade treaties have secret sections – or are entirely secret – one can be certain the public is being screwed and the secrecy is an attempt to avoid accountability. Secrecy enables corruption. So also does an inattentive public enable corruption." Is this a crisis of capitalism, then? Does capitalism need to end for us to resolve these problems? And if so, how? "Predatory capitalism is based on the privatisation of profit and the externalisation of cost. It is an extension of the fencing of the commons, of enclosures, along with the

criminalisation of prior common customs and rights. What we need is a system that fully accounts for all costs. Whether we call that capitalism or not is irrelevant to me. But doing so would fundamentally transform the dynamic of present day capitalism, by making capital open source. For example, and as calculated by my colleague JZ Liszkiewicz, a white cotton T-shirt contains roughly 570 gallons of water, 11 to 29 gallons of fuel, and a number of toxins and emissions including pesticides, diesel exhaust, and heavy metals and other volatile compounds – it also generally includes child labor. Accounting for those costs and their real social, human and environmental impacts has totally different implications for how we should organise production and consumption than current predatory SEASONAL MAGAZINE

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How Google is Taking on Amazon in E-Commerce, Finally

Google's $500 million investment in Google Shopping Express - a same-day grocery delivery service - will be watched closely at Amazon, which runs a similar AmazonFresh delivery service. nd not just because the two services compete. Google has a habit of putting its search services in front of Amazon's on the web, so that customers have to go through Google to get Amazon. That gives Google a chance to slice off some of Amazon's customers for itself. So Amazon's plan to do to lettuce what it already did to books just got a little bit more complicated now that Google Shopping Express is on the scene. Amazon has famously transformed brick-and-mortar retail through "showrooming"- when shoppers browse the shelves of real stores and then check for cheaper prices on Amazon. It took a while for stores to realize they were competing with online sellers this way. Some analysts believe chains like Best Buy have seen revenues contract because of Amazon's showrooming effect. But unless a shopper is searching Amazon directly, they're likely searching first on Google. And even though Amazon has highly ranked searches in Google, Google crams down those natural search results in favor of its own Amazon-like ads. Amazon pointedly refuses to buy Google's "product listing ads" (PLAs) to boost its visibility in Google, even though eBay and Zappos are huge investors in that media. This has become a huge business for Google. It's not clear how big yet since we're just seeing the tip of the iceberg: Marin Software, one of the biggest search marketing agencies in the world, says that search marketers will switch one third of their budgets to PLAs by December 2014. Marin places $5 billion annually in search spending, while Google usually claims about 80% of all searches on the web. Using Marin's numbers and some back-of-the18

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Jeff Bezos envelope math, Google would be capturing $1.3 billion from PLAs, just from Marin's clients. That business puts Google in direct competition with Amazon for those shopping dollars. And now Google seems to be trying to do something similar with Amazon's grocery deliveries. Google Shopping Express will launch for free but eventually require a flat-fee membership, Re/code reports. That model is similar to Amazon Prime Fresh, which costs $299 a year and includes free shipping and a library of videos and music. Grocery chains will no doubt be terrified that Amazon will do to supermarkets what it's already done to big-box retail: Destroy big chunks of it. In turn, Google appears to be poised to do to Amazon in groceries what it's already doing to Amazon in product search: slice off big chunks of its business. So you can see why grocery chains might be more enthusiastic to get on board with Google than with Amazon. AmazonFresh does deliver some goods from local stores, but its core produce fruits and veggies - come from

Larry Page Amazon's own warehouses. Any lettuce bought via AmazonFresh is a lettuce not being bought from Kroger or Stop & Shop. Google Shopping Express, by contrast, sources all its groceries at stores near you. Google is not interested in getting into the warehouse and the refrigerated truck business the way Amazon is. A lettuce bought on Google Shopping Express will ultimately be bought from Kroger or Stop & Shop or their ilk. That's why this is the most interesting sentence in Re/code's report on Google Shopping Express: Costco's CEO, for instance, flew out to Google's Mountain View, California campus to meet with Google CEO Larry Page before agreeing to participate in the Google Shopping Express program. Supermarkets might end up being very afraid of Amazon and very enthusiastic about Google. You can see how this might line up: In one corner, AmazonFresh. In the other corner, Google Shopping Express and every local supermarket chain in the country, all of whom now have a keen interest in preventing the showrooming of groceries. SM

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capitalism." So what exactly do you mean by open source everything? "We have over 5 billion human brains that are the one infinite resource available to us going forward. Crowd-sourcing and cognitive surplus are two terms of art for the changing power dynamic between those at the top that are ignorant and corrupt, and those across the bottom that are attentive and ethical. The open source ecology is made up of a wide range of opens– open farm technology, open source software, open hardware, open networks, open money, open small business technology, open patents–to name just a few. The key point is that they must all develop together, otherwise the existing system will isolate them into ineffectiveness. Open data is largely worthless unless you have open hardware and open software. Open government demands open cloud and open spectrum, or money will dominate feeds and speeds." On 1st May, Steele sent an open letter to US vice president Joe Biden requesting him to consider establishing an Open Source Agency that would transform the operation of the intelligence community, dramatically reduce costs, increasing oversight and accountability, while increasing access to the best possible information to support holistic policy-making. To date, he has received no response. I'm not particularly surprised. Open source everything pretty much undermines everything the national security state stands for. Why bother even asking vice president Biden to consider it? "The national security state is rooted in secrecy as a means of avoiding accountability. My first book, On Intelligence: Spies and Secrecy in an Open World – which by the way had a foreword from Senator David Boren, the immediate past chairman of the Senate Select Committee for Intelligence - made it quite clear that the national security state is an expensive, ineffective monstrosity that is simply not fit for purpose. In that sense, the national security state is it's own worst enemy – it's bound to fail." 20

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WHAT WE NEED IS A SYSTEM THAT FULLY ACCOUNTS FOR ALL COSTS. WHETHER WE CALL THAT CAPITALISM OR NOT IS IRRELEVANT TO ME. Given his standing as an intelligence expert, Steele's criticisms of US intelligence excesses are beyond scathing – they are damning. "Most of what is produced through secret methods is not actually intelligence at all. It is simply secret information that is, most of the time, rather generic and therefore not actually very useful for making critical decisions at a government level. The National Security Agency (NSA) has not prevented any terrorist incidents. CIA cannot even get the population of Syria correct and provides no intelligence decision-support-to most cabinet secretaries, assistant secretaries, and department heads. Indeed General Tony Zinni, when he was commander in chief of the US Central Command as it was at war, is on record as saying that he received, 'at best,' a meagre 4% of what he needed to know from secret sources and methods." So does open source mean you are calling for abolition of intelligence agencies as we know them, I ask. "I'm a former spy and I believe we still need spies and secrecy, but we need to redirect the vast majority of the funds now spent on secrecy toward savings and narrowly focused endeavors at home. For instance, utterly ruthless counterintelligence against corruption, or horrendous evils like paedophilia. "Believe it or not, 95% of what we need for ethical evidence-based decision support cannot be obtained through the secret methods of standard intelligence practices. But it can be obtained quite openly and

cheaply from academics, civil society, commerce, governments, law enforcement organisations, the media, all militaries, and non-governmental organisations. An Open Source Agency, as I've proposed it, would not just meet 95% of our intelligence requirements, it would do the same at all levels of government and carry over by enriching education, commerce, and research – it would create what I called in 1995 a 'Smart Nation.' "The whole point of Open Source Everything is to restore public agency. Open Source is the only form of information and information technology that is affordable to the majority, interoperable across all boundaries, and rapidly scalable from local to global without the curse of overhead that proprietary corporations impose." It's clear to me that when Steele talks about intelligence as 'decision-support,' he really does intend that we grasp "all information in all languages all the time" – that we do multidisciplinary research spanning centuries into the past as well as into the future. His most intriguing premise is that the 1% are simply not as powerful as they, and we, assume them to be. "The collective buying power of the five billion poor is

four times that of the one billion rich according to the late Harvard business thinker Prof C. K. Prahalad – open source everything is about the five billion poor coming together to reclaim their collective wealth and mobilise it to transform their lives. There is zero chance of the revolution being put down. Public agency is emergent, and the ability of the public to literally put any bank or corporation out of business overnight is looming. To paraphrase Abe Lincoln, you cannot screw all of the people all of the time. We're there. All we lack is a major precipitant – our Tunisian fruit seller. When it happens the revolution will be deep and lasting." The Arab spring analogy has its negatives. So far, there really isn't much to root for. I want to know what's to stop this revolution from turning into a violent, destructive mess. Steele is characteristically optimistic. "I have struggled with this question. What I see happening is an end to national dictat and the emergence of bottom-up clarity, diversity, integrity, and sustainability. Individual towns across the USA are now nullifying federal and state regulations - for example gag laws on animal cruelty, blanket permissions for fracking. Those such as my

THE ARAB SPRING ANALOGY HAS ITS NEGATIVES. SO FAR, THERE REALLY ISN'T MUCH TO ROOT FOR. colleague Parag Khanna that speak to a new era of city-states are correct in my view. Top down power has failed in a most spectacular manner, and bottom-up consensus power is emergent. 'Not in my neighborhood' is beginning to trump 'Because I say so.' The one unlimited resource we have on the planet is the human brain – the current strategy of 1% capitalism is failing because it is killing the Golden Goose at multiple levels. Unfortunately, the gap between those with money and power and those who actually know what they are talking about has grown catastrophic. The rich are surrounded by sycophants and pretenders whose continued employment demands that they not question the premises. As Larry Summers lectured Elizabeth Warren, 'insiders do not criticise insiders.'" But how can activists actually start moving toward the open source vision now? "For starters, there are eight 'tribes' that among them can bring together all relevant information: academia, civil society including labor unions and religions, commerce especially small business, government especially local, law enforcement, media, military, and non-government/ non-profit. At every level from local to global, across every mission area, we need to create stewardship councils integrating personalities and information from all eight tribes. We don't need to wait around for someone else to get started. All of us who recognise the vitality of this

possibility can begin creating these new grassroots structures from the bottom-up, right now." So how does open source everything have the potential to 're-engineer the Earth'? For me, this is the most important question, and Steele's answer is inspiring. "Open Source Everything overturns top-down 'because I say so at the point of a gun' power. Open Source Everything makes truth rather than violence the currency of power. Open Source Everything demands that true cost economics and the indigenous concept of 'seventh generation thinking' – how will this affect society 200 years ahead – become central. Most of our problems today can be traced to the ascendance of unilateral militarism, virtual colonialism, and predatory capitalism, all based on force and lies and encroachment on the commons. The national security state works for the City of London and Wall Street – both are about to be toppled by a combination of Eastern alternative banking and alternative international development capabilities, and individuals who recognise that they have the power to pull their money out of the banks and not buy the consumer goods that subsidise corruption and the concentration of wealth. The opportunity to take back the commons for the benefit of humanity as a whole is open – here and now." For Steele, the open source revolution is inevitable, simply because the demise of the system presided over by the 1% cannot be stopped – and because the alternatives to reclaiming the commons are too dismal to contemplate. We have no choice but to step up. "My motto, a play on the CIA motto that is disgraced every day, is 'the truth at any cost lowers all other costs'", he tells me. "Others wiser than I have pointed out that nature bats last. We are at the end of an era in which lies can be used to steal from the public and the commons. We are at the beginning of an era in which truth in public service can restore us all to a state of grace."

(Credit: The Guardian) SEASONAL MAGAZINE

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IS THIS THE UNKNOWN WAY IN WHICH EXERCISE IMPROVES HEALTH THE MOST?

Being physically active may encourage beneficial germs to thrive in your gut, while inactivity could do the reverse, according to a new study. The findings suggest that, in addition to its other health benefits, frequent exercise may influence our weight and overall health by altering the kinds of organisms that live inside of us. recent years, there has been an explosion of interest in the role that gut microbes play in health. A multitude of studies have shown that people with large and diverse germ populations in their digestive tracts tend to be less prone to obesity, immune problems and other disorders than people with low microbial diversity, and that certain germs may contribute to improved metabolic and immune health.

a lot: the national rugby team of Ireland.

But little science had examined the interplay between physical activity and gut bugs. So, for a study published this month in Gut, researchers at University College Cork, part of the National University of Ireland, and other institutions, set out to learn more by turning to a group of people who exercise

Forty players agreed to participate. At the time of the study, they were exercising strenuously every day. For comparison, the researchers also recruited two groups of healthy adult men, none of them athletes. One group consisted of men with a normal body mass index. Most in this group exercised occasionally.

The men in the final group were generally sedentary and had a body mass index that would qualify them as overweight or obese. This group was included, Dr. Shanahan said, because the rugby players, although supremely fit, were physically huge. The scientists collected blood and stool samples from all the men. The volunteers also completed questionnaires about their exercise routines and diet, and spoke with a nutritionist about their daily food intake. Then the scientists analysed the men’s blood for markers of muscle damage and inflammation, which would indicate how much each volunteer had or had

“We chose professional athletes as a study group, because we wanted to be sure not to miss any effect of exercise and needed a group who were safely performing at the extremes of human endeavour,” said Dr Fergus Shanahan, an author of the study who is a professor of gastroenterology and director of the Alimentary Pharmabiotic Center at University College Cork. not been moving and exercising recently. The scientists also used sophisticated genetic sequencing techniques to identify and enumerate the particular microbes living in each man’s gut. As it turned out, the internal world of the athletes was quite different from that of the men in either of the control groups. The rugby players had considerably more diversity in the makeup of their gut microbiomes, than did those of the other men. The rugby players’ guts also harbored larger numbers of a particular bacterium, Akkermansiaceae, that has been linked in past studies with a decreased risk for obesity and systemic inflammation. The men in both of the control groups, on the other hand, especially those with the highest BMIs and who rarely exercised, had relatively low numbers of Akkermansiaceae in their guts and elevated markers for inflammation in their bloodstreams. SM

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S H O C K E R

Is This True? 1600 Chinese Executives Die Daily Due to Over Work Chinese banking regulator Li Jianhua literally worked himself to death. After 26 years of “always putting the cause of the party and the people” first, his employer said in June, the 48-year-old official died of a heart attack rushing to finish a report before the sun came up. China is facing an epidemic of overwork, to hear the state-controlled press and Chinese social media tell it. About 600,000 people a year die from toiling too hard, according to the China Youth Daily. Statecontrolled China Radio International puts the toll at 1,600 a day.

icroblogging website Sina Weibo (WB) is filled with complaints about stressed-out lives and chatter about press reports of people working themselves to death: a 24year-old employee at Ogilvy Public Relations Worldwide, a 25-year-old auditor at PricewaterhouseCoopers, a designer of fighter planes. “What’s the point of working overtime so you can work to death?” asks a Weibo user, noting that his own boss told employees to spend more time on the job. The state, however, is holding up worked-to-death employees as heroes akin to earlier Communist martyrs such as Lei Feng, a soldier in the People’s Liberation Army who’s been lionized in propaganda campaigns since the 1960s for his selfless devotion to the party. Li’s employer released a statement on June 10 praising him as “a model for party members and cadres of the China Banking Regulatory Commission.” It said that to “learn from Comrade Li Jianhua, one must be like him, always firm in ideals and beliefs, the broader interest, loyal to the cause of the party and the people, unremitting struggle sacrificing everything.” 24

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Because the link between these deaths and work-related stress may not always be clear, the death toll can be subjective and difficult to compile. Death from overwork is as much a cultural phenomenon as a medical one, though the governments of Japan and Taiwan officially recognize cases for insurance compensation. The actual underlying causes of death encompass a wide range of illnesses such as heart attack or stroke that are aggravated by the stress of overtime. In the U.S., people don’t die from overwork, even though the Centers for Disease Control and Prevention say heart disease is the leading cause of death, and studies have linked sitting too long to an early death. Americans work an average of 45 hours a year more than the Japanese, according to the Organisation for Economic Cooperation and Development. In China, white-collar worries about overwork reflect a tipping point in economic development. The Chinese service sector has eclipsed manufacturing in terms of economic output, while factory workers are taking advantage of their shrinking numbers to negotiate shorter hours and better pay. Office workers are still

paid more than factory hands but have few of the protections a union can offer. They have bigger bills to pay for housing and cars. There is also demographic pressure: China’s onechild policy has created a generation of only children supporting aging parents and their own families. In exchange for starting salaries that are typically double blue-collar pay, office workers put in hours of overtime often in violation of Chinese labor law, according to Geoffrey Crothall, spokesman for the China Labour Bulletin, a Hong Kong-based labor advocacy group. “China is still a rising economy, and people are still buying into that hardworking ethos,” says Jeff Kingston, director of Asian Studies at the Japan campus of Temple University in Tokyo. “They haven’t yet achieved the ‘affluenza’ that led to questioning in Japan of norms and values.” In Japan, death from overwork is called karoshi. (In China it’s guolaosi.) Karoshi includes deaths from stroke, heart attack, cerebral hemorrhage, or other sudden causes related to the demands of the job. In 2012, the Japanese government compensated 813 families who were able to show a link between overwork, illness, and death, including 93 suicides. The Parliament passed a law on June 20 calling for support centers, aid to businesses for prevention programs, and more research on karoshi. Work-life balance still gets short shrift in China, a society that combines a modern pursuit of riches with an ancient belief in putting the community above the individual, says Yang Heqing, dean of the School of Labor Economics at the Capital University of Economics and Business. In Beijing’s business district, he’s surveyed hundreds of workers about their lives at home and at the office. Sixty percent of workers complain of clocking more than the legal limit of two hours a day of overtime, which is taking a toll on their families and health, he says. “More than in the Anglo-American corporate system, in Korea, China, and Japan— the countries of the Confucian belt— there’s a belief in total dedication,” says Temple University’s Kingston. “Any job

worth doing is worth doing excessively.” Li ran the division of the China Banking Regulatory Commission (CBRC) that’s overseeing the boom in trust products, investments considered part of an estimated $6.2 trillion shadow banking system that officials have sought to bring under government control. He traveled to 10 provinces in the second half of 2013 and met with all 68 trust companies. Employees in Li’s department regularly worked until midnight or later, according to a colleague who asked not to be identified because he’s not authorized to speak publicly. Li’s death, categorized as the result of “long-term overwork” by the CBRC, was the latest in a string of cases that have attracted media attention. Angela Pan, a PricewaterhouseCoopers auditor in Shanghai, wrote on her personal blog about working through weekends, needing a vacation, and suffering from fevers, according to the official Xinhua News Agency. A colleague in her Beijing office said employees were given tasks “impossible to finish without overtime.” Pan’s death drew more than 30,000 comments on Weibo from users attributing her death to overwork, Xinhua said. A statement by PricewaterhouseCoopers at the time of her 2011 death said Pan, a first-year

associate, had contracted encephalitis and taken sick leave to check into a hospital, where she later died. Gabriel Li, the Ogilvy employee who worked in the technology department of the agency’s Beijing office, died in May 2013, crying out and keeling over as he stood up from his desk on his first day back from medical leave, according to a report in the Beijing Times. Ogilvy’s Asia-Pacific Chief Executive Officer Scott Kronick declined to comment. In earlier decades of the Communist Party’s rule, those lucky enough to land office jobs at sprawling state-owned enterprises were guaranteed cradle-tograve employment, housing, even food and schooling for their children. Twohour lunches often sweetened the deal. Those perks disappeared as China opened the door to capitalism in the 1980s and inefficient enterprises shed jobs and benefits to compete. Now cubicle jockeys such as Li toil overtime, have long commutes, and regularly dine out with clients. The death of Luo Yang, called the father of China’s fighter-jet program, prompted questions about the country’s work ethic. He died at 51 of a heart attack on the same day in 2012 that the plane he developed, the J-15, made its first successful landing on an aircraft carrier. “We only know of the

sacrifice of Luo Yang, but we don’t know how many other people on his team died of overwork—isn’t it because of such admirable workers that the nation has reached its current status?” wrote a Weibo blogger who goes by Ordinary Yang MS. Li never discussed his personal problems with colleagues, according to the CBRC. In early April his doctor noticed some unusual symptoms, including excess blood flow to the eye, and suggested he go to the hospital for a checkup; Li “smiled and said he didn’t have any time,” the Chinese Financial News said. He’d been up late at home and “collapsed while working, suddenly dying in the early morning of April 23,” the CBRC statement read. When Li’s wife tried to notify his office about his death, she didn’t know anyone to call despite his years on the job. She had to find someone to pass along the message, says another person at the agency who declined to give his name because he isn’t authorized to speak publicly. The CBRC didn’t respond to questions about the trust department’s working hours or Li’s death. “At some point,” says Crothall of the China Labour Bulletin, “someone is going to stop and ask the question: ‘Why are we doing this to ourselves?’” (Credit: Bloomberg BusinessWeek) SM SEASONAL MAGAZINE

P O L I T I C S

282 and Insecure Government casts unflattering light on itself by blocking appointment of leader of opposition.

his election has thrown up an unambiguous result. The BJP alone occupies more than half of the Lok Sabha and the Congress has been reduced to less than a sixth of its rival’s numbers. There has not been such a stark power differential between government and opposition in the last three decades. And yet, for weeks now, the Congress has been petitioning for the right to nominate an official leader of the opposition in Parliament, a request that has been met with stalling. It has now formally requested the Lok Sabha speaker, Sumitra Mahajan, to make the decision, citing the 1977 law. The Salaries and Allowances of Leaders of Opposition in Parliament Act says that the single largest opposition party is eligible for the LOP’s post. The BJP, for its part, has cited subordinate rules and previous convention, according to which a party needs a minimal 10 per cent of the seats (which the Congress is short of), to demand that status. It also points out that there was no

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formal leader of the opposition when Indira Gandhi was PM and when Rajiv Gandhi had a steamroller majority. But the point remains that a bad precedent should not be perpetrated when the chance is available, and the law clearly gives the largest opposition party, however small, the right to declare a leader of opposition. The question is not one of the Congress’s claim, or whether the BJP is entitled to rub in a defeat. It is about parliamentary oversight and the tenets of our constitutional democracy. The leader of the opposition is on the selection committees for statutory posts like the chief vigilance

he question is not one of the Congress’s claim, or whether the BJP is entitled to rub in a defeat. It is about parliamentary oversight and the tenets of our constitutional democracy.

commissioner, CBI director and Lokpal, and this is an important safeguard against unchecked executive privilege. In the UPA years, Sushma Swaraj, for instance, was a robust participant in these panels, expressing her dissent on the selection of the CVC, blocking the then-government’s Lokpal nominees, and making sure that the final choice was one of consensus. Given the unusual strength of this government and the centralisation of command, it is particularly vital that there be a formal counter within Parliament. The Modi government has a mandate like no other in recent years. It should not let petty rancour stop the necessary appointment of a leader of opposition. Given the virtual sidelining of his cabinet and glimmers of judicial intimidation in the Gopal Subramanium case, Modi now has to counter the perception that he brooks no opposition. One way would be to gracefully accept what the law demands, on the question of parliamentary roles. SM (Credit: The Indian Express)

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Without 7 Hours Sleep, Your Brain Shrinks The less older adults sleep, the faster their brains age. Those who slept fewer hours showed decline in cognitive performance he less older adults sleep, the faster their brain shrinks and declines, researchers have warned. Researchers say the findings could have important implications for the rise of dementia among the elderly. The team studied 66 older Chinese adults, who underwent MRI scans as well as completing sleep surveys. Researchers at Duke-NUS Graduate Medical School Singapore (Duke-NUS) said those who slept fewer hours showed evidence of faster ventricle enlargement and decline in cognitive performance. These findings, relevant in the context of Singapore's rapidly ageing society, pave the way for future work on sleep loss and its contribution to cognitive decline, including dementia. Past research has examined the impact of sleep duration on cognitive functions in older adults. Though faster brain ventricle enlargement is a marker for cognitive decline and the development of neurodegenerative diseases such as Alzheimer's, the effects of sleep on this marker have never been measured. The Duke-NUS study examined the data of

66 older Chinese adults, from the Singapore-Longitudinal Aging Brain Study. Participants underwent structural MRI brain scans measuring brain volume and neuropsychological assessments testing cognitive function every two years. Additionally, their sleep duration was recorded through a questionnaire. Those who slept fewer hours showed evidence of faster ventricle enlargement and decline in cognitive performance. 'Our findings relate short sleep to a marker of brain aging,' said Dr June Lo, the lead author and a Duke-NUS Research Fellow. 'Work done elsewhere suggests that seven hours a day for adults seems to be the sweet spot for optimal performance on computer based cognitive tests. In coming years we hope to determine what's good for cardio-metabolic and long term brain health too,' added Professor Michael Chee, senior author and Director of the Centre for Cognitive Neuroscience at Duke-NUS. Earlier this week researchers warned sleeping too much in middle age can be just as bad for you as not having enough.

A study of almost 9,000 people found those aged 50 to 64 who slept for less than six hours a night or more than eight had worse memories and decision-making abilities. But brain power was only reduced for older adults of 65 to 89 if they slept too long. The dangers of having too little sleep are well established, but the latest study, carried out by experts at the University of Warwick, indicates that an excess can create similar problems. Researcher Dr Michelle Miller said the results also suggest that the amount of sleep we need – and its affect on the body and brain – changes with age. Co-author Professor Francesco Cappuccio claimed getting just the right amount of sleep among the elderly could even prevent the agerelated mental decline that can result in dementia. He added: ‘Sleep is important for good health and mental wellbeing. 'Optimising sleep at an older age may help to delay the decline in brain function seen with age, or may slow or prevent the rapid decline that leads to dementia.’ Dr Miller said: ‘Six to eight hours of sleep per night is particularly important for optimum brain function in younger adults. 'These results are consistent with our previous research, which showed six to eight hours per night was optimal for physical health, including lowest risk of developing obesity, hypertension, diabetes, heart SM disease and stroke.’ SEASONAL MAGAZINE

By S thy S.. Gurumur Gurumurthy

E C O N O M Y

WILL SMEs AND OAEs GET THE DESERVING FOCUS?

The national discourse is so superficial that it only talks of foreign direct investment, investment allowance, tax sops and the like which are just about a twentieth to a sixth of the national economy. It did not even notice paragraph 102 in the Union budget speech which is about half of India’s economy. ommentators see facts hidden in budgets as the “devil’s in the detail.” This presumes that only wrong things are buried in the detail. But Gregory Titelman — in the Random House Dictionary of Popular Proverbs and Sayings, Random House Reference March 5, 1996 — finds that “God is in the detail” is the original source of the idiom, “the devil’s in the detail.” Here is something in Union Finance Minister Arun Jaitley’s budget speech which accords with the original idiom — the good is in the detail. A profound idea of the new government which has the stamp of Prime Minister Narendra Modi is expressed, but not elaborated, in paragraph 102 of the speech. It says: “SMEs form the backbone of our Economy. They account for a large portion of our industrial output and employment. The bulk of service sector enterprises are also SMEs. Most of these SMEs are Own Account Enterprises. (An enterprise normally run by members of the household without hiring any worker on a fairly regular basis is an own account enterprise or OAE). Most importantly a majority of these enterprises are owned or run by SCs, STs and OBCs. Financing to this sector is of critical importance, especially as it benefits the weakest sections. There is need to examine the financial architecture for 28

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this sector. I propose to appoint a committee with representatives from the Finance Ministry, Ministry of MSME, RBI to give concrete suggestions in three months.” In the budget discourse monopolised by corporates, the financial world and the elite, this profound idea has been completely ignored. That Small and Micro Enterprises (SME) form the backbone of our economy is a slogan that has been a part of the national economic discourse for long. But beyond oral compliments, nothing great has been done for them. Also, there is very little awareness about this vital segment of our economy — within and outside the government. What then does this “God is in the detail” paragraph 102 comprehend?

[about India] from the corporate feedback (and vice versa) is fraught with risk. After all, only half of India’s GDP and 10 percent of India’s employment are in the formal sector. Further, only a fraction of the formal sector is listed.” It also exposes the emperor’s new clothes story — that the corporate sector generates only 15 per cent of national consumption, with the share of the listed ones in it just a fraction, four per cent. Moreover, the celebrated private corporates, with the IT and auto revolution, have added just 3.7 million jobs in 20 years from 1991. The Crédit Suisse report rightly concludes that the corporate “tail is unlikely to wag the dog,” namely the national economy.

Unregistered Business is Legitimate:

Corporates and the Economy:

If the formal — read corporate — sector is so marginal and provides just over 14 million jobs, then what is the core of the Indian economy? And who provides jobs for the hundreds of million people? It is the informal economy of India, says the Crédit Suisse paper.

A helicopter view of the nation’s economy and its major components is needed in order to grasp what Mr. Jaitley has said. The Asia/Pacific Equity Research paper of Crédit Suisse — which manages $1.3 trillion worth of assets — says that corporates constitute just “the tail” of the Indian economy. This report is dated July 2013, after two decades of celebration of the corporate sector. The paper titled “India’s better half: The Informal Economy” adds: “The intuitive habit of drawing macroeconomic conclusions

What is the informal economy? In the West, the informal economy represents illegal business. But the paper says: “[U]nlike in the developed economies where informality is purely a deliberate choice to avoid taxation or regulations, in India it is more structural: a reflection of the lack of development and limited government reach.” The informal economy in India is genuine business. Yet, the Indian media, policymakers and economic experts look at the legal informal economy like how the West sees its illegal informal economy. This

S. Gurumurthy

“Establishments” employing outside labour.

Caste-based Entrepreneurship: Here is the unknown picture of this huge sector. A majority of the 57.7 million units operate in rural areas, the most difficult terrain for the government to provide non-farming jobs. They add an aggregate value of Rs.6.28 lakh crore to the national economy, 70 per cent of them in the rural areas, and employ 108 A helicopter view of the million; 53 million in the rural nation’s economy and areas. Their value addition its major components is per unit is Rs.1.09 lakh; per needed in order to worker it is Rs.58,000, and grasp what Mr. Jaitley per hired worker it is Rs.47,000, which equals the has said. The Asia/ Pacific Equity Research average per capita income paper of Crédit Suisse in 2009-10 and is higher — which manages $1.3 than the rural per capita The fixed capital trillion worth of assets income. employed per unit is Rs.2 — says that corporates lakh, which is not constitute just “the insignificant. More than twotail” of the Indian thirds of them are engaged economy. in trade and services and a fourth, in manufacturing.

has acted as a mental block in the system against what paragraph 102 describes as “the backbone of the Indian economy.” The informal economy in India represents the unincorporated — namely unregistered — business. What is the size of the Indian unincorporated sector? The Crédit Suisse study says that unincorporated businesses account for 84 per cent of the non-formal employment in India — against 4-6 per cent in “Developed” nations, according to World Bank. What the study sees as the informal economy, the National Sample Survey Organisation (NSSO) Survey 2011 presents as comprising

57.7 million non-corporate business units outside the huge construction sector. And 70 per cent of them are unregistered, says NSSO. They are the fastest growing since 1991, almost doubling since 1998. In contrast, and post-liberalisation, the share of jobs in the organised sector came down from 8 to 7 per cent. The first change in the government’s approach to this vital segment, so far derided as the “informal economy,” has been to adopt, in paragraph 102, the NSSO’s description of them — as “Own Account Enterprises” (OAE), that is selfemployment units; 85 per cent of 57.7 million units are OAEs. The rest are

Another vital, but unknown truth is that it is dominated by the disadvantaged sections — the Other Backward Classes (OBCs) the Scheduled Castes (SC) and Scheduled Tribes (ST). A Harvard Business School (HBS) study titled “Caste and Entrepreneurship in India” links this sector to caste-based entrepreneurship. The NSSO survey says that two-thirds of the sector is owned by STs, SCs and OBCs who operate 71 per cent of manufacturing units and 60 per cent of trading. In rural areas, 72 per cent of OAEs are run by them. The OBCs run 48 per cent of the 57.7 million units and SC units have risen from 10 to 14 per cent in the six year period 2005-2011. This sector generates OBC, SC and ST entrepreneurs almost like an open air university. In contrast, the elite Indian Institutes of Technology and the Indian Institutes of Management generate job seekers, not entrepreneurs. The Economic Census 2005 revealed that this massive sector which provides 90 per cent of non-farming SEASONAL MAGAZINE

employment could access — believe it or not — only 4 per cent of institutionalised finance, leaving the rest to usurious money lenders. Banks in India almost monopolise national cash savings. The bank deposit to GDP ratio in India has more than doubled to 71 per cent from 1991 to 2014. With over 70 per cent of the 57.7 million units unregistered, banks, perhaps rightly, do not finance them. Banks are unable to finance even the registered small units whose share of bank credit had halved to just 7 per cent between 1994 and 2008. The bank credit to them now is still less than what it was in 1994. Increasing the ownership of SCs, STs and OBCs in this sector is the best way to ensure social justice. It is doable. Through an affirmative policy launched in the 1970s, Malaysia could increase ownership of discriminated groups in private enterprises from only just 2 per cent in 1970 to 20 per cent in 1990. How? By a systematic redistribution of ownership of private capital in favour of discriminated groups over a period of two decades (The Hindu, November 30, 2011). This is precisely the agenda of paragraph 102 of Mr. Jaitley’s budget speech.

Finance to Formalise: Experts think that it will take half a 30

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century for OAEs to become a part of the formal economy. Till then can credit be denied to the sector that provides 90 per cent of non-farming jobs and half of the nation’s GDP? Actually, as The Economist magazine (September 28, 2013) wrote, providing finance to them is the best way of formalising them. And not providing credit to them is criminal neglect of half the economy and its greatest job creator. Paragraph 102 of Mr. Jaitley’s speech intends to undo this criminal neglect of the most vital sector of the Indian economy. The national discourse is so superficial that it only talks of foreign direct investment (FDI), investment allowance, tax sops

Mr. Modi’s diagnosis is a potential game changer. But the big “if” is whether he will have the willpower to drive the agenda through the headwinds of structuralists in the financial system, the Reserve Bank of India in particular which is against all forms of a non-bank financing model.

and the like which are just about a twentieth to a sixth of the national economy. It did not even notice paragraph 102 which is about half of India’s economy. The paragraph indicates out-of-the-box thinking. Mr. Modi seems to have discovered the secret to growth and social justice — namely providing the lifeline of finance to the most job productive segment of the national economy operated by the disadvantaged sections of Indian people. The words “there is need to examine the financial architecture for this sector” in paragraph 102 are significant. They imply that the present financial architecture is just not the answer — and it cannot be. A new one is needed. Mr. Modi’s diagnosis is a potential game changer. But the big “if” is whether he will have the willpower to drive the agenda through the headwinds of structuralists in the financial system, the Reserve Bank of India in particular which is against all forms of a nonbank financing model.

(S. Gurumurthy is a chartered accountant, a visiting faculty member at IIT Bombay and a distinguished research professor, legal anthropology, at SASTRA University. Article credit: The Hindu.) SM

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G A D G E T S

Top 5 High Quality Affordable Phones Like the Moto G Motorola’s Moto G is considered one of the best smartphones available thanks to its combination of hardware, software and price. And while the Moto G is a device that consumers should definitely take a look at, there are several other smartphones that consumers should consider before taking the plunge with the Moto G. t the tail end of last year, Google announced a brand new smartphone dubbed Moto G. The device, which the company pairs with its Moto X and Moto E offerings, is a low cost Android smartphone that comes with solid build quality, quick software updates, and a surprisingly low price tag that makes it appealing to the average consumer that doesn’t care about having all of the bells and whistles. While it doesn’t provide a full HD 1080p display, a high quality camera or 4G LTE data speeds, the Moto G’s HSPA+ or 4G networks, good-looking 720P display and 5 MP camera are good enough for many

consumers. It also helps that the device recently got upgraded to Android 4.4.4 KitKat, an update that delivers a number of fixes and enhancements to the Moto G. Motorola’s device is undoubtedly one of the best cheap smartphones on the market. And because it’s one of the best, affordable Android smartphones on the market, there’s great interest amongst consumers as we head towards the fall. Which are the phones consumers should weigh against the Moto G? There are a number of different devices that could be recommended, the smartphone market is full of solid choices, but here are the top five choices.

Google Nexus 5 Nexus 6 rumors have sparked up again though the point to a possible release in November. So, for the time being, Google's Nexus 5 reigns as the company's top Nexus smartphone option and one of the best Moto G competitors out right now. The Nexus 5 comes with many of the hardware features that the Moto G doesn't have. It features 4G LTE. It comes with a quad-core processor. It has an 8MP camera with OIS. And it features a 5-inch 1080p display. It also gets quick updates, just like Motorola's smartphone. The kicker is that you get all of this for $350. Yes, it's a little more expensive than the Moto G, but for a little more money you get a fully featured phone that should last you for a few years. 32

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Motorola Moto X The Moto X is a little older than the Moto G but with a customizable design, a price tag that's in decline (now it's just $350 online) and with some highpowered hardware and software, the Moto X is a device that prospective Moto G buyers would be wise to check out before buying. It also helps that the Moto X recently got upgraded to Android 4.4.4 KitKat, Google's latest update that delivers crucial fixes and enhancements and improves the device moving forward. Motorola's Moto X will be replaced by a brand new Moto X+1 in just a few short weeks but until then, it will serve as one of Motorola's top three smartphone options. Take a look at it. You might like what you see.

Motorola Moto E

LG G2 The LG G2 is LG's flagship from last year and it's a device that was recently replaced by the LG G3. Don't let that fool you. This is still a high quality smartphone and one that benefits from an extremely cheap price tag. The LG G2 features a 5.2inch 1080p HD display, quad-core processor, a stunning 13 megapixel camera on the back with image stabilization, and a price tag that is steadily dipping. It's not LG's best but it's a device that is certainly worth a look because of what you get for the price.

The Moto E is another cheap device that Motorola offers alongside the Moto X and the Moto G. It's not as good as the Moto G but its price tag makes it a worthy competitor. Motorola's Moto E features a 4.3-inch 540 x 960 qHD display, dual-core Snapdragon 200 processor, and 4GB of internal storage. It isn't the most exciting smartphone on the planet, but the micro-SD slot for storange expansion, latest version of Android, and front facing speakers all make it worth the $129 asking price. Take a look before jumping in with the Moto G.

OnePlus One The OnePlus One features a 5.5-inch 1080p full HD display, a Snapdragon 801 quad-core processor, 16GB of internal storage, and a 13 megapixel camera on the rear. It has 3GB of RAM for great multi-tasking, a massive 3,100 mAh battery for all-day usage and it uses a CyanogenMod powered version of Android. Here's the best part. All of that costs a mere $299. Yes, it's cheaper than the Nexus 5 and therefore it's worth considering next to the Moto G. Consider it before buying the Moto G.

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E C O N O M Y

Raghuram Rajan Defends Bankers, Warns of a Global Market Crash His views are likely to be taken seriously as Rajan's earliest claim to fame is that in a 2005 event honouring Alan Greenspan, he accurately predicted the 2008 global financial crisis.

eserve Bank Governor Raghuram Rajan has cautioned that the arrest of Syndicate Bank chairman in a bribery scandal should not lead to a “witch hunt” in the entire banking system. He, however, admitted that there are governance issues in public sector banks. Rajan said the RBI has ordered the inspection of the books of public sector Syndicate Bank following the arrest of its chairman and managing director SK Jain for allegedly taking a bribe of Rs 50 lakh. “There is an inspection underway of Syndicate Bank but I think one has to be very careful about extrapolating this issue to entire banking system without thinking further through,” he said. When asked whether the CBI has started collecting details of NPAs and debt restructured accounts, RBI Deputy Governor SS Mundra said the RBI is not aware of any such development. “I think balance has to be maintained and we have to be also careful. While we do thorough investigation and culprits are brought to book, it does not become a witch-hunt which then stalls the entire credit process,” Rajan said. “It is important for an enforcement agency to ensure full investigation is done. I think they are doing that...,” Rajan said. “We need to again look at 34

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the governance of the public sector bank and understand the deficiency there and try and improve it,” he said. Acknowledging that there are lots of highly qualified people working in PSBs, he said “they should not be tarred with same brush”. Rajan said the whole point of banking is about taking risks and using discretion in taking those risks. “You may trust (a customer) a little more, there is some chemistry that works, that’s relationship banking. For the outside to dictate that ‘this is the price you have to charge’ takes the banker out of the equation. In that case you might as well put a machine there and give loans. Some machines do that, but that is for small loans and that is called credit score. For large loans it is impossible to take out banker’s judgment.” In another development, in an interview to Central Banking Journal, Raghuram Rajan said global markets are at risk of a "crash" should investors start bailing

out of risky assets created by the loose monetary policies of developed economies. The comments reiterate Rajan's previous warnings that emerging markets were especially vulnerable to big shifts in capital flows brought on by the unprecedented monetary accommodation in rich nations. The former chief economist at the International Monetary Fund compared the current global markets to the 1930s - a period marked by the Great Depression. Rajan said back then countries were engaged in a period of competitive devaluation, in a similar way to central banks now being engaged in ever more accommodative policies. "We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost," Rajan said in an interview on the journal's website. Rajan said he worried about the impact of investors exiting markets all at once after buying heavily into assets inflated by these loose central bank policies. "There will be major market volatility if that occurs. True, it may not happen if we can find a way to unwind everything steadily. But it is a big hope and a prayer," Rajan said. His views are likely to be taken seriously as Rajan's earliest claim to fame is that in a 2005 event honouring Alan Greenspan, he accurately predicted the SM 2008 global financial crisis.

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RUN FOR YOUR BUT JUST 7 MIN A DAY IS ENOU

F I T N E S S

A simple seven-minute run has now been found to cut the risk of a heart attack or death due to stroke by 55%.

cientists confirm that running for only a few minutes a day or at slow speeds may significantly reduce a person's risk of death from cardiovascular disease compared to someone who does not run. The US government and the World Health Organization recommend 75 minutes per week of vigorousintensity activity, such as running but it was unclear whether there are health benefits for those exercising below this level. Researchers, therefore, studied 55,137 adults between the ages of 18 and 100 over a 15-year period to determine whether there is a relationship between running and longevity. Compared with non-runners, the runners had a 30% lower risk of death from all causes and a 45% lower risk of death from heart disease or stroke. Runners, on average, lived three years longer compared to non-runners. The authors have, therefore, concluded that promoting running is as important as preventing smoking, obesity or hypertension. The benefits were the same no matter how long, far, frequently or fast participants reported running. 36

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Benefits were also the same regardless of sex, age, body mass index, health conditions, smoking status or alcohol use. The study showed that participants who ran less than 51 minutes, fewer than 6 miles, slower than 6 miles per hour, or only one to two times per week had a lower risk of dying compared to those who did not run. DC Lee, lead author of the study and an assistant professor in the Iowa State University said they found that runners who ran less than an hour per week have the same mortality benefits compared to runners who ran more than three hours per week. Thus, it is possible that the more may not be the better in relation to running and longevity. Researchers also looked at running behaviour patterns and found that those who persistently ran over a period of six years on average had the most significant benefits, with a 29% lower risk of death for any reason and 50% lower risk of death from heart disease or stroke. "Since time is one of the strongest barriers to participate in physical activity, the study may motivate more people to start running and continue to run as an attainable health goal for mortality benefits," Lee said.

"Running may be a better exercise option than more moderate intensity exercises for healthy but sedentary people since it produces similar, if not greater, mortality benefits in five to 10 minutes compared to the 15 to 20 minutes per day of moderate intensity activity that many find too time consuming". Running three times a week cut the chance of a fatal heart attack or stroke by 61% which was slightly more than those who ran once or twice a week. The optimum running speed was between 7.1mph and 7.6mph which cut the risk of a dying from a heart attack or stroke by 60%, the study found. Dr Chi Pang Wen of the Institute of Population Health Sciences in Taiwan said "A five-min run is as good as 15min walk and a 25-min run can generate benefits that would require four times longer to accomplish by walking. As the researchers indicated, for younger individuals who are pressed for time, running is a far better option for time efficiency. Exercise is a miracle drug in many ways. The list of diseases that exercise can prevent, delay, modify progression of, or improve outcomes for is longer than we currently realise. We do not need to be athletes to exercise â&#x20AC;&#x201D; it should be part of all of our daily routines." SM

LIFE, UTES GH

"RUNNING MAY BE A BETTER EXERCISE OPTION THAN MORE MODERATE INTENSITY EXERCISES FOR HEALTHY BUT SEDENTARY PEOPLE SINCE IT PRODUCES SIMILAR, IF NOT GREATER, MORTALITY BENEFITS IN FIVE TO 10 MINUTES COMPARED TO THE 15 TO 20 MINUTES PER DAY OF MODERATE INTENSITY ACTIVITY THAT MANY FIND TOO TIME CONSUMING".

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S E L F - H E L F

Get Angry or Bott Feeling angry? Let it all out, punch a pillow, blow off steam, but don’t keep it in, right? As Claudia Hammond discovers the evidence is far more complicated. ow often have you heard the advice to not to keep any anger in for the sake your health? There’s a common notion that suppressing your anger must be bad for your body, or at least give you a stomach ulcer. From time to time you read reports showing that it could be bad for your heart. But when you look across the evidence that has built up over the years, what does it reveal about managing anger? In terms of ulcers, whether you storm around the room raging or simmer in silence, you can still get them. While stress was thought to be a major contributing factor, there’s no clear evidence that it depends on whether or not you express your anger, as it’s now known that most ulcers are caused either by the bacteria Heliobacter pylori or by prolonged use of non-steroidal antiinflammatory drugs. When it comes to the heart, the evidence is more mixed. In a study carried out at the University of North Carolina in 2000, 13,000 patients were given questionnaires in which they rated their own tendency to get angry, and were followed up a few years later. Although their blood pressure was apparently normal, those who had said they frequently lose their temper were three times more likely to have had heart attacks in the intervening years than the others, even when factors like smoking, diabetes and weight had been taken into account. Likewise, Mark McDermott from the University of East London found that people who 38

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expressed their anger suffered more from heart disease than those who held back from shouting. This all seems plausible, especially as there are known physiological mechanisms through which expressing anger could be problematic. When you lose your temper your face reddens, your jaw clenches and your heart starts racing in preparation for fight or flight. The body gets ready by taking fat from smooth muscle in case you need extra energy. If those fatty acids aren’t used they have to go somewhere and can end up clinging to the artery walls, and these deposits can contribute to heart disease. Each time your blood pressure shoots up you can be left with scar tissue left by the tiny injuries inflicted on the coronary artery walls, which in turn can also contribute to heart disease. The occasional scar is no problem, but theoretically if this is repeated day after day the harm could start to build up. A healthy heart can deal with this, but if someone already has coronary heart disease then on rare occasions the sudden rise in blood pressure can cause fatty deposits inside the wall of the arteries to break off and block the artery. If this means blood can’t reach the heart, the result is a heart attack; if it can’t reach the brain then you have a stroke. But other studies have shown no link between anger and heart disease, or that people with high blood pressure seem to be more likely to suppress their anger. The problem is that studies measure both heart disease and the expression of anger in so many

different ways that they’re hard to compare. In an attempt to get to the bottom of the mystery Giora Keinan from Israel looked not only at how frequently people get angry, but at the intensity of that anger. She found that in terms of health, the best thing to do is to get very angry, making your case “clearly and firmly”, but to do so only rarely. She suggests that the people who do this are likely to be the same people who are good at finding other ways of dealing with difficult situations. This reduces the amount of stress they experience,

le Up? and in turn improves immune function, leading to better health. Another possibility is that it all depends on how you express your anger. A study in Canada took 785 randomly selected adults and followed them up for a decade. They found that men who expressed their anger constructively, using it to try to get something done, were less likely to develop heart disease. In women it made no difference. But in both men and women expressing anger in a way that sought to blame others, and to justify their own actions was associated with more heart disease.

Even if studies are inconclusive as to whether getting angry is always good for us physically, surely the mere act of letting it all out will provide some relief, won’t it? Maybe not. Some therapists give people pillows to punch, but this isn’t always as cathartic as it sounds. In fact it can increase your feelings of anger. In one study people received insulting criticism about an essay they’d written, including feedback such as “this is the worst essay I’ve ever read”. Half the people were then given the chance to vent their anger by hitting a punch bag. They said they enjoyed it, but when they were then given the chance to subject a competitor to loud noises in another part of the test, they punished the people with louder noises than the other group did. It seems that far from calming them down, the bag-

punching had in fact made them more aggressive. The same researchers also made people believe they’d been given a drug which would freeze their mood for an hour (although this seems implausible, none of the participants expressed suspicion). After they were made to feel angry, far fewer bothered to hit the punch bag, suggesting that we do these things because of a belief that it will make us feel better, even though it might not. So what does this all tell us? Well, it suggests that holding your anger in doesn’t do you much harm, that the occasional outburst is probably OK and that it’s not so much whether you get angry that matters, but how you do it and how often. SM (Credit: BBC)

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Honda Mobilio Test Driven

Though Honda has a fairly extensive range of MUVs in its global market, the Mobilio, with its relatively compact proportions, seems like a logical choice for India and south east Asia. Built on an extended version of the Brio platform, the MUV uses Honda's 'Man maximum, machine minimum' philosophy to offer a more spacious cabin and look better than its rivals.

t the front, it resembles the Brio and the Amaze a little despite a noticeable line connecting the headlight and the front grille. The edges of the large front bumper have a sporty wing-like design and are body-coloured except the centre, which is black. The Mobilio RS has a handful of additional features like the new twin-slat chrome grille, LED projector head-lamps, revised bumpers, roof-mounted spoilers and better looking alloy wheels. Moving on to the standard Mobilio, it's side profile scores the most in the looks department. The character lines and the lightning bolt belt line highlight the MUV's sportiness. The rising roofline and the extended 3-row window glass that connects to the tail gate also blends in well. It also doesn't look too tall or raised despite the ground clearance of 189 mm, which is higher than that of the Etriga and the Innova. The rear is also more attractive than your run-of-the-mill MUV, thanks to the contoured tail-gate and a flared rear fender that adds drama to the rear 3/4ths. The consensus from a Facebook poll is that Mobilio is more of a Ertiga competitor than an Innova killer, but that is fair enough as it is cheaper than the Toyota flagship. We drove the top-end diesel variant, which is expected to drive the volumes for Honda. The 1.5litre i-Dtec continues to impress with a claimed mileage of 24.2Km/l, whereas

the i-Vtec petrol engine will offer 17.3Km/ l. Claimed efficiency figures for both the engines are well ahead of its competitors. Honda has also enhanced friction reduction in both engines to boost fuel efficiency. The 1.5-litre diesel mill is certainly impressive and is a little bit less noisy as compared to the one on the Amaze. Honda's efforts to insulate the Mobilio's cabin shows that only makes the driving experience a little better. What makes the MUV even more fun is the fact that the gear shifts are quick and smooth, with an equally smooth acceleration. That said, the steering does feel a tad bit light and is no fun at high speeds. As far as the tech specs are concerned, the Mobilio's diesel is quite exciting with 98bhp and a generous 200Nm of torque on offer. On the other hand, the 1.5-litre i-Vtec offers 117bhp and 145 nm of torque. Honda will offer only the 5-speed manual on both variants for now and has no immediate plans to bring in the CVT gearbox for India. The sedan-like monocoque chassis means a fairly smooth drive. The suspension isn't too stiff and fares well even on bad roads. The minimum turning radius of 5.2 metres on the petrol variant is quite handy for city driving conditions. However, the turning radius on the diesel is marginally higher at 5.4 metres due to engine size and weight. The Ertiga features a turning

radius of 5.2 metres, while that of the Innova stands at 5.4 metres. With 7 adults in the MUV, we had a fair chance to check out the suspension setup under full load. The car felt heavier and the body roll seemed to have increased too. Luckily, the diesel engine has the grunt to still pull through fairly well. Honda has used high tensile steel in the Mobilio's frame to increase energy absorption and minimise impact from any direction. The top end variants get dual front airbags and Anti-lock Braking system (ABS) with Electronic Brake Distribution (EBD). The car's luggage space with all seats deployed is good enough for small suitcases and the wide tailgate and the higher floor makes for easy loading and unloading. The third row can be folded completely, and offers 521-litres of cargo space. The back of the first and second row seats are slightly concave in order to provide additional knee room to rear passengers. The second row of the Mobilio felt fairly comfortable with generous amounts of legroom and headroom on offer. The large windows also add to the cabin's roomy factor. The seats also recline and slide, again, adding to the passengers' comfort. The rear AC vents, with controls, work well. Moving on to the third row, the one motion fold-down function is almost effortless but doesn't make ingress and egress any easier, especially for tall people and the elderly. The third row has decent amounts of legroom and headroom, but it gets a bit uncomfortable since one has to sit with their knees up. Though A/C vents are missing in the third row, it gets a cup holder and a small area to put your mobile phone. The dashboard of the Mobilio is not boring. The centre console of the topend variant receives a faux wood finish, whereas the base model gets beige-black interiors with fabric seats. The seats are slim and have integrated headrests and are fairly comfortable. The instrument cluster has protruding triple analog metres with white and blue illumination for a slightly premium feel and better visibility.

(Credit: PS Balakrishnan for NDTV Auto) 40

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Modi Reveals an Un Good Side: Jeet Bah This has indeed been a year of wondrous revelations. First Narendra Modi admitted in his election filing document he had a wife. Now we find out he has a godson as well. A Nepalese one to boot. This is a lost-and-found story that would have moved Manmohan Desai to tears. Except this is real. It’s part of the Magic of Modi. ther PMs sign bilateral trade deals. Modi reunites a mother and son after 16 years. “How happy are you now? You should be happy after seeing your lost son after so many years,” the PM told the mother on Sunday. And today the papers are filled with the photo-ops of that tender moment. Here’s what we know now about Jeet Bahadur. He came to work in India as a boy from Nepal. His elder brother Dasrath was already working as a domestic help. Ten-year-old Jeet followed suit but apparently ran away to Rajasthan, unable to deal with the hard work. From there he tried to board a train that would take him to Gorakhpur on the India-Nepal border but instead he took the wrong train to Ahmedabad. That’s where he met Narendra Modi and what was a sad story of poverty and child labour has been transformed into a story about acchey din. When Modi went to Kathmandu his official stance was he wanted to HIT Nepal with Highways, Information-ways and Transmissionways. But if that is a HIT, this motherson reunion story on the sidelines is the real blockbuster on so many levels. Here's what we have learned about Narendra Modi from watching this Himalayan reunion:

Modi is Way Ahead of the Media: While the media were chasing after the 42

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elusive Jashodaben, there was a far more fascinating story unfolding right under their noses. Let’s face it, a forsaken wife is rather commonplace. But a Nepalese dharmputra is quite something else. Our media has been reporting it with gushing excitement but without real astonishment. It’s as if there’s nothing that unusual for a Prime Minister to be reuniting mothers and sons in different countries. “The family of Jeet Bahadur in Nepal, whose godfather is

Prime Minister Narendra Modi, is excited about the premier’s upcoming visit to the Himalayan country,” said India Today calmly days before the big Nepal visit. This nonchalance is obviously a way to mask their chagrin for having completely missed out on the epic scoop.

Modi is Good: It establishes the softer side of Modi brilliantly. A woman brings a helpless child to Modi and he takes care of him. “I started showing my concern for Jeet Bahadur. Gradually he took interest in academics, sports and even learnt Gujarati,” tweeted Modi. This was hands on mentorship, not sending an annual check for an orphan in Africa. The Hindustan Times reports that since

known adur Modi “shifted to New Delhi, Jeet has been staying in a hostel. Modi is paying for his BBA." What makes it even more heartwarming is this story was not trotted out during the campaign to establish Modi-the-Good, the soft heart of the man of steel. Jeet Bahadur was not hologrammed around the country as living proof of the Gujarat model. I gave birth to Jeet says his mother but Narendra Modi brought him up. And to think some naysayers tried to use the Jashodaben story to show Modi as heartless.

Modi is a Man of Action: On his website narendramodi.in, Modi's mantra is emblazoned for all the world to see – Actions Not Acts: Fulfilling Promises from Day 1. The Case of the Nepalese Godson proves that’s not idle talk. The Telegraph reports that two years ago Modi met Nepalese industrialist Binod Choudhary at a Ficci meeting in Gujarat. India Today says Choudhary invited Modi to Nepal and Modi put out a condition. He said Choudhary should first locate Jeet’s family. Apparently the businessman did so within 30 hours. Jeet has six toes on one foot and that rare identification mark helped track down the family. But let’s give it up for Modi. Without him Jeet Bahadur would have been flat outta luck.

Modi is Not Anti-immigrant: A canard was spread during the election campaign that Narendra Modi did not like immigrants. He said immigrants who had come to India illegally from Bangladesh should have their “bags packed” if he came to

It establishes the softer side of Modi brilliantly. A woman brings a helpless child to Modi and he takes care of him. “I started showing my concern for Jeet Bahadur. power. “You are concerned about infiltrators and not your own people – they must go back,” Modi told a rally in West Bengal targeting Mamata Banerjee for being too soft on the issue. In a rally in Assam, Modi alleged those in government were killing endangered rhinos to make room for Bangladeshi settlers. “People sitting in the government... to save Bangladeshis... they are doing this conspiracy to kill rhinos so that the area becomes empty and Bangladeshis can be settled there.” Now Modi has his own feel-good “some of my nearest and dearest ones are immigrants” story. Media reports are unclear about Jeet’s visa status and how that got sorted out. Surely a ten-year-old did not come to India on a work visa. But we do know one thing for sure - he is not from Bangladesh.

Modi is a Master of Timing: For a man who claims he has no time to watch Bollywood films, Modi understands the theatrics of timing better than most film directors. He can spring a surprise like no one else. And he knows the perfect moment. Jeet it turns out had visited Nepal last in 2011/ 12 for Diwali according to the Hindustan Times. But there’s no mention that he met his family at that time or it had even been located by then. If he had met them then how was this the grand reunion after 16 years? If this was indeed the big reunion the question is if Binod Choudhary was so prompt with his detective work for Modi why did the meeting take this long? “It was not clear though why the reunion had to wait for Modi’s visit to Nepal as Prime Minister although the family had been traced some time ago,” says The Telegraph. Why indeed? As any director will tell you it’s all about timing, timing, timing. But in every Jeet story there must be some losers.

Eat your heart out, Sushmaji: Sushma Swaraj’s first visit to Dhaka got a lot of press coverage especially for the sari diplomacy. Sushma-ji took a hand-picked cream-coloured South Indian silk sari for Sheikh Hasina who gifted her with Bangladesh’s famous jamdani sari in return. Begum Khaleda Zia gave her a couple as well. All of it made for a good story about that special feminine connection which “laced hard diplomacy with a feminine touch, a domain where men cannot enter”. But Modi has blown that sari diplomacy out of the water with his Bahaduri.

Saroo Brierley had better watch out: A while back the media was abuzz with the story of Saroo Brierley, the Indian boy who boarded the wrong train, ended up in Kolkata and could not find his way back to his family. Years later, growing up as an adoptee in Australia, he managed to use Google Earth, Facebook and hazy fragments of his memory to find his family once again. He wrote about a book about it – A Long Way Home. It is an amazing story. But now take that story and add an Indian prime minister to it. How much more amazing is that? Brierley might find his producers suddenly abandoning him if they get wind of this new story. Paresh Rawal could star as Modi in the film version. But now the question becomes how can Modi top this? His muchanticipated visit to the United States is coming up soon. What will he do there? Is there an American godson who can be reunited with his long-lost mother in front of tens of thousands of delirious fans? Is that the real reason for thinking about booking Madison Square Gardens? We just cannot wait. (Credit: Sandip Roy for FirstPost)

SEASONAL MAGAZINE

By TP Sreenivasan, Former Ambassador of India

INDO-US RELATIONS

Will Modi-Obama Summit Succeed Despite the WTO Setback? No one can be faulted for thinking that India-US relations has hit a historic low due to India's unique stand on the WTO food subsidy issue, that has annoyed America much. But TP Sreenivasan, former Ambassador of India, while writing exclusively for Seasonal Magazine, argues that neither WTO nor the nuclear liability act nor any other such issue would hinder the inevitable success of Modi-Obama summit scheduled in September. The only time I met Narendra Modi was in Washington, before he became the Chief Minister of Gujarat. His ambition to become the Prime Minister was not even a twinkle in his eye. I received him in my office and at my home for dinner the same evening. Those were the difficult days in India-US relations after our nuclear tests, but he shared his optimism about India-US relations with some of the World Bank officials he wanted to meet and the leaders of the Gujarati community, who were already his ardent admirers. He had no doubt that India and the US had much in common and that a partnership between the two countries was inevitable. Sushma Swaraj had also visited Washington during my stint there and she had extensive contacts with the Indian community in the aftermath of the nuclear tests and she had stressed that the strains in India – US relations would disappear when the larger interests of the two nations came into play. Her optimism was based on her assessment of the evolving global situation at the end of the twentieth century. Today, in positions of power to shape and conduct foreign policy, both Modi and Swaraj would naturally view India44

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US relations in the larger context of India’s global interests and their immediate priorities. Having identified these in the early days of the Government, it is clear that the Modi Government will focus on extending and deepening relations with the United States. With foreign direct investment, strengthening of India’s security and liberalization for the sake of “skill, speed and size” of the Indian economy as priorities, the US should be his prime destination and strategic partner. The fact that the US has not been one of Modi’s early destinations is partly by accident and partly because of the present state of relations, which he has inherited. Showing over-enthusiasm for the US is not fashionable for any political leader in India. When the then Prime Minister Inder Gujral decided to change his schedule of visit to New York to accommodate a meeting with Bill Clinton, he travelled via Africa for cosmetic reasons. Bhutan, Brazil, Nepal and Japan have both symbolic and substantive meaning. Meeting Vladimir Putin and Xi Jinping before Obama, though by chance, gave a hint of his other options. Japan occupies a special place in Modi’s global calculations. The trough in relations that Modi has

inherited is deep, but there is reason to believe that the relations will be on the upswing after the Modi-Obama summit. Neither the visa issue, nor the Devyani Khobragade fiasco will stand in the way. Even more substantial issues like WTO, the nuclear liability act, India-China relations, Ukraine, NSA snooping of BJP and the demand for further liberalization of the Indian market will not be insurmountable in the face of geopolitical and economic compulsions on both sides. The recent visit of Secretary of State John Kerry and the strategic dialogue have set the stage for a remarkable recovery, for which the credit must go to the principals. It would have been impolitic for Kerry and Swaraj to steal the thunder of their masters. In one masterstroke, Kerry solved the highly emotive issue of the denial of visa by dismissing it as a decision taken by a previous Government, thus distancing Obama from any “Modiphobia”. Modi himself had never played it up as an impediment and now it has become a non-issue. The snooping issue was similarly dealt with in a forthright manner, with Swaraj insisting that it was not acceptable and Kerry giving assurances of non-intervention without discussing intelligence matters. Swaraj did not provide any alibi for the US in

the name of ant-terrorism measures, as her predecessor did on an earlier occasion. Kerrry may have hastened to visit India to see whether he could persuade India not to block the WTO Trade Facilitation Agreement without reaching a permanent solution to the problems relating to food security in India. The strong message he got from the Indian Prime Minister himself may have disappointed him, but this was not entirely unexpected, as Modi is known to stick to his positions. But the unjustness of the insistence that the minimum support price for food grains should be only 10% more annually over the 1986-88 prices is evident. By speaking for the poor of India on this issue, Modi also tried to remove the impression that his Government was only for the corporate world. This is not the first time that India has stood against a global consensus in order to protect its vital interests. The celebrated cases of the Nuclear NonProliferation Treaty (NPT) and the Comprehensive Test Ban Treaty (CTBT) show that bilateral relations would not be held hostage to our positions on the multilateral stage. The majority may employ its own devices to isolate India, but it will not hurt bilateral relations. The India-US nuclear deal is an example of a bilateral arrangement overcoming the disagreements in multilateral treaties. The intractable nuclear liability act was a device used by the opposition in India, including the Bharatiya Janata Party (BJP) to nullify the nuclear deal. The lawyers on both sides have not yet found a way to facilitate nuclear trade without amending the liability act. The grievance is clearly on the US side since the expectation of commercial deals of billions of dollars worth of reactors and nuclear material did not fructify. India, on its part, has designated sites and asked the Nuclear Power Corporation Ltd (NPCL) to get the preliminary work done with the US companies. It is believed that a lack of agreement on this issue would jeopardize bilateral relations. Although the US Government has made this issue a litmus test of India’s bona fides with regard to the nuclear deal, Obama may not, in his heart of hearts,

TP Sreenivasan

consider it an obstacle to working with Modi. As a senior White House official told me in 2009, Obama will not be particularly unhappy if there is no nuclear trade with India because it goes against his own conviction that the US should not contribute to India’s nuclear capability. The real reward he will seek is the massive arms deals under the agreement signed by Pranab Mukherjee, ahead of the nuclear deal. The key to a solution will be found when Defense Secretary Chuck Hagel visits India shortly to seek more arms deals. Modi has emphasized the need for selfreliance in defense, but that is more a dream than a reality and it is possible that the US will bag defense contracts, which will be large enough to compensate for the loss of nuclear trade. The increase in foreign direct investment in the defense sector will be music to the American ears and the clamor against the nuclear liability bill will subside. The announcement of the India-US-Japan joint exercise in the Indian Ocean has already cheered up the Americans. Would Modi’s warming up to China, particularly in economic matters, and his affinity to China in the context of Asia’s economic growth be an irritant in India-US relations? Would the BRICS Bank be seen as a challenge to the Bretton Woods institutions? These would definitely come up in Washington, but neither of these developments would match the mammoth Chinese involvement in the US economy. Obama is aware of the built-in distrust between India and China and the exploitative nature of China’s trade with India. The massive Chinese investments expected in Indian infrastructure and other sectors may well turn out to be a pipe dream.

The Chinese challenge may act as an incentive for the US to be more sensitive to India’s aspirations. While Modi has tried to moderate India’s position on Palestine to gladden the hearts of the US and Israel, he has shown no such enthusiasm in the case of Ukraine, where the US and the European Union is engaged in a struggle with Russia. He was more than friendly with Vladimir Putin in Brazil and he declared eternal friendship with Russia. But as long as these declarations have no substance on the ground, the Americans will take them in their stride. John Kerry may have accomplished little during his visit, but the Joint Statement is a veritable list of the components of a strategic relationship in the making. The list includes counter terrorism, India’s entry into Nuclear Suppliers Group (NSG) and related bodies, appreciation of the ratification of the Additional Protocol, space and nuclear cooperation, foreign investment climate in India, cooperation in Afghanistan, call for action against the Mumbai attackers in Pakistan, unity and integrity of Iraq, Violence in Gaza and Israel, UN Security Council reform and even capacity building in half a dozen African countries. They reflect the lowest common denominators in each of these issues, but they underline the potential for a truly strategic relationship, once the chemistry between Modi and Obama begins to work at the summit and dynamism is generated. Modi and Obama are seen as men of destiny in their respective nations and both are determined to succeed. Obama is under extra pressure to contribute to his legacy, while Modi can ill afford to start on the wrong foot with the United States. Success is, therefore, imperative and inevitable when the two meet in Washington in the balmy September weather. (TP Sreenivasan is a noted foreign affairs expert, especially so in Indo-US relations. He served in Indian Foreign Service (IFS) in various roles during a 37 year old career, including as the Permanent Representative of India to the UN, as the Governor for India of the International Atomic Energy Agency, and as the Ambassador to Austria and Slovenia.) SM

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A G R I C U LT U R E

IS AQUAPONICS THE FUTURE OF AGRICULTURE? Aquaponics is a food production system that combines conventional aquaculture (raising aquatic animals such as snails, fish, crayfish or prawns in tanks) with hydroponics (cultivating plants in water) in a symbiotic environment. In normal aquaculture, excretions from the animals being raised can accumulate in the water, increasing toxicity. In an aquaponic system, water from an aquaculture system is fed to a hydroponic system where the by-products are broken down by nitrogen-fixing bacteria into nitrates and nitrites, which are utilized by the plants as nutrients. The water is then recirculated back to the aquaculture system. As existing hydroponic and aquaculture farming techniques form the basis for all aquaponics systems, the size, complexity, and types of foods grown in an aquaponics system can vary as much as any system found in either distinct farming discipline. Here is the story from the world's largest aquaponics farm.

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undreds of native sturgeon, the largest no more than sixinches long, swim inside a 305-gallon barrel in a greenhouse on Coward Road, Watsonville, California. The water, containing their waste, is pumped out and through a series of biological filters before flowing into long troughs upon which float rafts of leafy greens. The plants' roots dangle into the water, feeding on the nutrients generated by the fish waste and cleaning the water for circulation back into the fish tank. This is Viridis Aquaponics, a Pajaro Valley start-up with global ambitions. Partners Jon Parr and Drew Hopkins are attempting to create the largest commercial aquaponics operation in the country at a former rose nursery. If all goes as planned, they'll fill 350,000 square feet of greenhouses with fruits, vegetables and fish within 18 months, all grown in a sustainable, environmentally friendly manner. "This is the future of agriculture," said

Hopkins. The concept isn't new. Ancient farmers used the technique. The modern version of aquaponics, which combines hydroponics - the practice of growing plants in water - and aquaculture or fish farming, dates back to at least the 1960s. But it's never been done on the scale Parr and Hopkins envision for the 10-acre property they purchased a few weeks ago for $2.32 million. Parr, a Soquel resident, is a former contractor who was casting about for a new line as the construction industry tanked. Aquaponics had been a hobby, and he spent several years researching the topic before hooking up with Hopkins and moving forward with the commercial venture. A family tragedy brought Hopkins to Santa Cruz from Park City, Utah. An event promoter and contractor, he said life hadn't been the same since his son was killed in a snowmobile accident a few years ago. But in April, he and his wife came to Santa Cruz to visit friends, and during a pleasant evening at the Crow's Nest, began to imagine a new

life. He also had been interested in aquaponics, and a friend introduced him to Parr. Their vision is to create a self-contained operation. The aquaponics system will allow them to use far less water than conventional growers, and no fertilizer or pesticides. To control bugs, they'll regularly infuse greenhouses with carbon dioxide, a by-product of the wood-chip burning gasification oven that will power the generator that will supply electricity. Aquaponics is so efficient, Parr said, they'll be able to grow a head of lettuce in a month and more than four heads in a square foot, each month all year. A conventional farmer might get one head of lettuce per square foot, and two to three crops per year, he said. In three years, they'll be able to send 15-pound sturgeon to the market as well. If it sounds too good to be true, Parr said he thought so too at first. But his research and experience have convinced him it will work. Not everybody is so sure about the SEASONAL MAGAZINE

economics, even advocates. Chris Newman started Santa Cruz Aquaponics in 2009 in a rented Corralitos greenhouse. By the end of 2011, he was out of business and his $350,000 investment gone. "It does seem like a great idea, but I'm not convinced the vegetable world is ready for it," Newman said. In his case, he said, several issues brought the business down, including financing problems, conflicts with partners, and his first choice of fish -the non-native tilapia that faces regulatory hurdles. But there also was resistance from existing agricultural interests and marketing difficulties. "From a biosustainable point of view, I was trying to do something responsible," Newman said. "But the market's not paying attention. The market pays attention to price." Ryan Chatterson also is skeptical about large-scale aquaponics, at least for the present. A biologist, he worked in the field for 10 years, before starting to build his own operation in 2012 in Clermont, Fla., about 25 miles east of Orlando. He's been producing crops for about three months. He thinks small-scale, local concerns charging a premium to a market interested in healthy lifestyles is the way to go, and once he gets his initial venture 48

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off the ground, he plans to grow by opening satellite operations. Though it took a long time, hydroponics went mainstream, Chatterson said, mentioning a 200-acre operation in Arizona. Aquaponics is a better system because you don't need all the chemical inputs, he said. It too eventually will go mainstream. "The science is there, the environment, we're going to have to go that way," Chatterson said. "It's just a matter of how quickly we're going to get there." California, he said, will probably get there first. Parr and Hopkins are betting on it. Though they declined to say how much they've spent so far, it's clear their

PARR SAID HIS YEARS OF RESEARCH, INCLUDING INVESTIGATING WHAT WENT WRONG WITH FAILED VENTURES, WILL HELP VIRIDIS AVOID MISTAKES AND TURN A PROFIT.

investment is substantial. Parr said his years of research, including investigating what went wrong with failed ventures, will help Viridis avoid mistakes and turn a profit. But first they have build the ecosystem, which includes tweaking the biofilters to get the microbes working correctly to break down the fish waste. They also are experimenting with different sizes of fish tanks to figure out what works best in a commercial setting. Only a few demonstration troughs are planted now. But as workers cart out pots of rose bushes, another crew consisting of family and friends is building more aquaponics beds on either side of a row of blue 500 gallon tanks. Parr plucked a bouquet of redvine sorrel and oak leaf lettuce from a raft brought from his home garden. The produce will be delivered live, the roots bagged to retain moisture. He said Viridis plans to market to restaurants, where chefs can have greens like basil sitting in a cup of water on the counter top, fresh until the last leaf is picked. One day, he said, Viridis, which means green or fresh in Latin, will be producing a wide variety of produce, from lettuce and tomatoes to strawberries and raspberries. "This farm model we're creating is going to be replicated by everyone," Parr said. (By Donna Jones for Santa Cruz Sentinel)

SEASONAL MAGAZINE

PETROL/DIESEL PRICE FIXING FAULTY, SAYS CAG

A COMPTROLLER AND AUDITOR GENERAL AUDIT REPORT ON PRICING OF PETROLEUM PRODUCTS BY PUBLIC SECTOR OIL MARKETING COMPANIES, TABLED IN PARLIAMENT RECENTLY, SAYS THE PRESENT PRICING MECHANISM BENEFITED THEM BY RS 50,513 CRORE DURING THE FIVE YEAR PERIOD OF 2007-12. he pricing mechanism allowing an import-linked price at the refinery gate on the sale of regulated products â&#x20AC;&#x201D; LPG, kerosene, diesel and petrol â&#x20AC;&#x201D; is beneficial to the oilmarketing companies (OMCs), the federal auditor said and pointed out how the faulty pricing mechanism has acted as a source of benefit to the private refineries as well. The pricing mechanism, including notional import related expenses like customs duty, insurance, ocean freight etc, which are not incurred but are reimbursed to the refineries works out to Rs 50,513 crore for the period 2007-12. Even allowing for importrelated expenses incurred by the refineries on import of crude, the oil marketing companies ought to have benefited at least by Rs.26,626 crore through the pricing methodology of products, CAG said.

"This affords an undue benefit to private refiners (Reliance Industries Limited and Essar Oil Limited), which was estimated at Rs 667 crore on high speed diesel alone in one year (2011-12)," it said.

The government refineries uplift petroleum products from private refineries in order to meet the domestic requirement. The OMCs pay these refineries import-linked prices (RGP) for such products. Private refiners, however, export their balance products at export parity price which are lower compared to the RGP (refinery gate prices). "This affords an undue benefit to private refiners (Reliance Industries Limited and Essar Oil Limited), which was estimated at Rs 667 crore on high speed diesel alone in one year (2011-12)," it said. CAG said the mechanism of pricing 50

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Shashikant Sharma

regulated petroleum products does not reflect the actual cost of operations of refineries. "Being import-linked, the pricing at the refinery gate is a source of benefit for the PSU refineries. The actual expenses relating to marketing of products does not match the elements recovered through the price build-up," it said. CAG also pointed out that such price protection has not translated to higher investment in technology up-gradation of refineries as was envisaged while considering continuance of the pricing methodology in 2006. SM

C O N T ROV E R S Y

WHY BLAME ONLY SONIA FOR THE PANDORA’S BOX? For want of a proper name for the genre of these memoirs, the works of Sanjaya Baru and Natwar Singh should fall into the “M O Mathai school of kicking the corpse” books. Just before the elections, former Prime Minister Manmohan Singh’s media adviser, Sanjaya Baru, wrote a book portraying Singh as a weak prime minister. He also, understandably, attacked Congress president Sonia Gandhi, who did not give him a second term in the Prime Minister’s Office. ow, former foreign minister Natwar Singh in his book, One Life is Not Enough: An Autobiography, claims that Sonia once counted him among her closest friends, and then goes on to demolish her as a person and a politician. He is reported to have written, “Sonia once said, Natwar, you are my closest friend, sometimes I don’t tell my son and daughter what I have told you.” He also claims that Sonia and Priyanka visited him in May this year to plead with him not to write why Sonia withdrew from the prime ministerial race in 2004. Compared to Natwar Singh, Mathai comes across as an honourable man. Natwar, a former diplomat, was spotted by Indira Gandhi and then nurtured by Rajiv Gandhi and was made into a big Congress leader by Sonia. Mathai, just an ambitious stenographer or a personal assistant attached to Jawaharlal Nehru’s office, waited till Nehru’s death and Indira’s fall after the Emergency to write his books against Nehru and Indira, which made him more famous than he ever was. Nehru had kicked Mathai out of his office in 1959. But Sonia built up Natwar. She, obviously, has to pay for her lack of judgement. High offices demand of their occupants great judgement of

character. Clearly, Sonia and Manmohan lack that. Former Prime Minister Atal Bihari Vajpayee had several personal failings, probably much more than many other prime ministers. But not a single aide of his has chosen to make money or mirth out of his leader’s mistakes. Aides are but incidental to the lives of big leaders and, in most case, not indispensable at all. But a leader can be hit badly by an aide who betrays the trust of this association and abuses his proximity to write facts or fiction about his former master. A real leader has to choose his aides wisely. Sonia has failed miserably in counting Natwar a close friend. Natwar was a minister in the Manmohan Cabinet only for about a year. Yet, he insists that Sonia used to look at all important files. So is he saying this because he knows what happened in the nine ensuing years of the UPA government or just to bolster the biggest allegation in Sanjaya Baru’s book? Even the nugget about her decision not to step into the South Block is turned into high political drama. Rahul Gandhi stopping his mother from becoming the country’s prime minister is no earthshaking news. It was widely reported that it was after a family huddle that Sonia decided

not to become prime minister. Is this what the mother and daughter did not want Natwar to write about? Or was there a bigger secret? Sonia again displayed lack of judgement by seeking a favour from a former family retainer who happily turned around and told the whole world about the visit and the plea. The oil coupon scandal, the Volcker report and the Pathak commission did Natwar in. But like regular politicians, Natwar was not ready to wait it out to get rehabilitated. And all these years, Sonia too made no effort to win him back. Again, a comparison with Vajpayee is in order. Whether it was morally correct or not, Vajpayee did keep his friends in the Cabinet despite grave allegations of corruption, be it George Fernandes or Pramod Mahajan. Sonia dropped Natwar like a hot potato and Natwar waited nine years to give it back with a lot of penal interest. Well, those who know Natwar are not surprised. Once, after an alumni meet, Natwar is supposed to have written in the visitor’s book, “Whatever I am is because of this institution.” Then it was the turn of another Congress leader, who wrote, “Why blame the institution?” So, why just blame Sonia Gandhi?

(Rajesh Ramachandran for ET) SEASONAL MAGAZINE

S TA N D - O F F

RIGHT OR WRONG?

7 REASONS WHY INDIA IS RIGHT, 9 REASONS WHY WTO IS RIGHT India’s stand may seem unpalatable to developed countries. But there’s cause for them to come around argues Asit Ranjan in LiveMint. Tom Miles in Reuters provide the counter argument.

Why India is Right: India’s strong stand on food security at the World Trade Organization (WTO) has threatened to derail the first multilateral trade agreement reached in the last two decades. Developed countries have complained that India is going back on its promise made at Bali last December where it was agreed that the Trade Facilitation Agreement will be made a WTO rule by 31 July, while a permanent solution to the food security issue will be found only by 2017. India has maintained that different timelines for various elements of the Bali package is against the WTO rules of a single undertaking where everything need to be implemented simultaneously. Here is a look at the logic of India’s position: 1. India’s complaint is justified. According to the WTO rule, public stockholdings must not exceed 10% of the value of foodgrains produced and calculated at the base price of 1986-88. You cannot calculate current food subsidy limits by 1986-88 prices. That beats all logic. 2. For most of the developing countries including India, public stockholding for food security is a livelihood issue, a matter which should not be even debated at WTO. 3. Developed countries lose nothing if they allow higher public stockholding by developing countries after putting in place a mechanism with reasonable limits to ensure developing countries do not dump their excess cereals at rock bottom prices in the international market. 52

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Nirmala Sitharaman

4. Allowing developing countries to continue to provide price support to their farmers will be a big confidence booster in multilateral trade, given that the focus of the ongoing Doha round of negotiations is supposed to be on “development”. Developed countries can claim moral victory and fast-track the remaining issues of the Doha round once they oblige the food security demand of the developing countries. 5. Food security is the foundation upon which the United Nations’ Millennium Development Goals to eradicate extreme poverty and hunger stand. Forcing developing countries and Least Developed Countries to agree to anything which may compromise their right to food security will not only compromise basic human dignity but also go against the UN declaration to

which all countries are a signatory. 6. The government support to farmers in developed countries are way ahead of what developing countries can even afford to provide. For example, while India provides about $12 billion farm subsidy to its 500 million farmers, the US provides around $120 billion to its 2 million farmers. The figures could be contested, but not the trends. 7. Lastly, there is wide realisation in India at the state and central government level about the rising burden of subsidies and there is a serious move to make it more targeted through the use of technology as in the case of the Direct Benefits Transfer programme. To expect it to happen at the pace developed countries wish means one does not understand the complexities of a country like India.

Why WTO is Right: India's tough diplomacy blocked a landmark world trade treaty recently, despite last-ditch talks to rescue what would have been the first global trade reform since the creation of the World Trade Organization 19 years ago. Trade diplomats in Geneva have said they are "flabbergasted", "astonished" and "dismayed" and described India's position as "hostage-taking" and "suicidal". Here are nine reasons why

Pacific Partnership, which will have their own rules and systems of resolving disputes. That could lead to a fragmented world of separate trade blocs. 3. India's new government was widely seen as being pro-business. And yet it blocked a deal on "trade facilitation", a worldwide streamlining of customs rules that would cut container handling times, guarantee standard procedures for getting goods to and from their destinations and kill off vast amounts Roberto Azevedo

meeting to adopt the new rules was in progress. 5. India did not object to the deal it vetoed. Its objections were unconnected to trade facilitation. It blocked the trade facilitation deal to try to get what it wanted on something else: food security. 6. India had already got what it wanted on food security. At Bali, it forced a big concession from the United States and European Union, which initially strongly opposed its demands, but agreed that India could stockpile food at subsidised prices, reversing the trend of trying to reduce and remove tradedistorting food subsidies globally. The arrangement was temporary, but the WTO agreed to work towards a permanent solution within four years, by the end of 2017. 7. India's demands reversed its previous position. India blocked the trade facilitation deal because it wanted the WTO to move to a permanent solution more quickly than the four-year timeline. But diplomats say that India was offered a two-year timeframe before Bali but it insisted on four.

they say India's stance made no sense. 1. India has been a vocal backer of world trade reform. It has criticised the small clubs of countries, led by the United States and European Union, that lost patience with the slow pace of global reforms and started to discuss faster liberalising of trade in certain areas, such as services and information technology products. India is not in any of these groups. But Thursday's veto is likely to give them even more momentum as hope of a global trade pact, long in doubt, appears to be over. 2. India's veto may be the beginning of the end for the WTO. Trade experts say that if the WTO's 20-year-old rulebook does not evolve, more and more trade will be governed by new regional agreements such as the Trans-

of paperwork at borders around the world. Some estimates said it would add USD 1 trillion to the world economy as well as 21 million jobs, 18 million of them in developing countries. 4. Nobody else was negotiating. The recent meeting was simply supposed to formally adopt the final trade negotiation text into the WTO rulebook, following its agreement by ministers at a meeting in Bali last December. India's then Trade Minister Anand Sharma hailed the Bali deal as a landmark in the history of the WTO. "We were able to arrive at a balanced outcome which secures our supreme national interest," Sharma said at the time. India did not hint at any further objection until days before it wielded its veto, and even then it made no concrete demands until the WTO

8. India's veto could put it in legal danger. As part of the Bali deal, India won a pledge that nobody would bring a trade dispute to challenge its food stockpiling programme, which is widely thought to have broken the WTO rules. However, diplomats say that Bali was a "package" of 10 agreements, and the only legally binding part was trade facilitation. If that fails, the package unravels, and India may lose its protection. 9. India was isolated. Cuba, Venezuela and Bolivia voiced support, but diplomats say other big developing countries such as Russia, China and Brazil were among the chief opponents of its veto. Poorer countries stand to lose most, WTO chief Roberto Azevedo told the WTO meeting after the deal collapsed. "Theyâ&#x20AC;&#x2122;re the ones with fewer options, who are at risk of being left behind. Theyâ&#x20AC;&#x2122;re the ones that may no longer have a seat at the table." SM

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BREAKTHROUGH

Researchers Demo an Amazing Method to Bring Back the Just Dead A radical procedure that involves replacing a patient's blood with cold salt water could retrieve people from the brink of death. “When you are at 10 degree Celsius, with no brain activity, no heartbeat, no blood – everyone would agree that you’re dead,” says Peter Rhee at the University of Arizona, Tucson. “But we can still bring you back.” Rhee isn’t exaggerating. With Samuel Tisherman, at the University of Maryland, College Park, he has shown that it’s possible to keep bodies in ‘suspended animation’ for hours at a time. he procedure, so far tested on animals, is about as radical as any medical procedure comes: it involves draining the body of its blood and cooling it more than 20 degree C below normal body temperature. Once the injury is fixed, blood is pumped once again through the veins, and the body is slowly warmed back up. “As the blood is pumped in, the body turns pink right away,” says Rhee. At a certain temperature, the heart flickers Dr. Peter Rhee

into life of its own accord. “It’s quite curious, at 30 degree C the heart will beat once, as if out of nowhere, then again – then as it gets even warmer it picks up all by itself.” Astonishingly, the animals in their experiments show very few ill-effects once they’ve woken up. “They’d be groggy for a little bit but back to normal the day after,” says Tisherman. Tisherman created headlines around the world earlier this year, when he announced that they were ready to Dr. Samuel Tisherman

begin human trials of the technique on gunshot victims in Pittsburgh, Pennsylvania. The first patients will have been so badly wounded that their hearts have stopped beating, meaning that this is their last hope. “Cheating death with ‘suspended animation’” is how CNN put it; “Killing a patient to save his life” was the New York Times’ take. The news coverage has sometimes offended Tisherman’s cautious sensibility. During our conversation, he comes across as a thoughtful, measured man, who is careful not to oversell his research. He is particularly wary of using the term ‘suspended animation’. “My concern isn’t that it’s inaccurate – it’s that when people think of the term, they think about space travellers being frozen and woken up on Jupiter, or Han Solo in Star Wars,” he says. “That doesn’t help, because it’s important for the public to know it’s not science fiction – it’s based on experimental work and is being studied in a disciplined manner, before we use it to stop people dying.” Rhee, who came to global attention after treating congresswoman Gabrielle Giffords after a shooting in 2011, tends to be bolder: he says he wouldn’t rule out longer-term suspended animation, in the distant future. “What we’re doing is beginning part of that experiment.” Tisherman’s quest to bring people back from the brink of death began at medical school, where he studied under Peter Safar. It is an inspiring dynasty: in the 1960s Safar had pioneered cardiopulmonary resuscitation (CPR), the now familiar procedure of applying pressure to the chest cavity to try to

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massage the heart back to life. Safar’s work began to change our perceptions of death – blurring the point that is meant to mark the end of our lives. “We’ve all been brought up to think death is an absolute moment – when you die you can’t come back,” says Sam Parnia, at the State University of New York in Stony Brook. “It used to be correct, but now with the basic discovery of CPR we’ve come to understand that the cells inside your body don’t become irreversibly ‘dead’ for hours after you’ve ‘died’… Even after you’ve become a cadaver, you’re still retrievable.” Tisherman now thinks of death as the (admittedly subjective) point at which doctors give up resuscitation as a lost cause – but even then, some people can still make a remarkable comeback. Last December, a paper in the journal Resuscitation caused a stir by suggesting that 50% of surveyed emergency doctors have witnessed ‘Lazarus phenomena’, in which a patient’s heart has begun beating again by itself, after doctors had given up hope.

Kick-starting the heart is only one half of the doctor’s battle, however; the lack of oxygen after a cardiac arrest can cause serious damage to the body’s vital organs, particularly the brain. “Every minute that there’s no oxygen to those organs, they start dying,” says Tisherman. His former mentor, Safar, came up with a solution to this problem too, with ‘therapeutic hypothermia’, a procedure that involves cooling the body, typically to around 33 degree Celsius by placing ice packs around the body, for instance. At lower temperatures, cells begin to work in slow motion, reducing their metabolism and the damage that could be caused by oxygen starvation. Combined with machines that can take over circulation and pump oxygen into the blood stream while the heart is

being revived, this has helped open the window between cardiac arrest and brain death. One hospital in Texas recently reported that a 40-year-old man had survived, with his mind intact, after three-and-a-half hours of CPR. His treatment involved a constant rotation of medical students, nurses and doctors taking it in turns to perform the chest compressions. “Anybody in the room who had two arms was asked to jump in,” says one of the attending doctors, Scott Taylor Bassett. Such cases are rare, however: Bassett, points out that they were only motivated to continue because the patient regained consciousness during the CPR, despite the fact that his heart was still not functioning. “During the chest compressions he would speak to us, showing he was neurologically intact,” says Bassett. “I’ve never seen it before or since – it was the defining moment of the entire decision making.” Such long-term resuscitation is currently impossible for people whose cardiac arrest is accompanied by injury from trauma – such as gunshot wounds or automobile accidents. At the moment, the surgeon’s best option is SEASONAL MAGAZINE

to clamp the arteries leading to the lower body, before opening the chest and massaging the heart, which pushes a little blood flow to the brain while surgeons try to stitch up the wounds. Unfortunately, the survival rate is less than one in 10. It is for this reason that Tisherman wants to plunge the body to around 10-15C, potentially giving the doctors a window of two or more hours to operate. Although this level of deep hypothermia is sometimes applied during heart surgery, Tisherman’s project is the first time that it will have been be used to revive someone who had already ‘died’ before entering the hospital. Perhaps most astonishing of all, the team drain the blood from the body and replace it with chilled saline solution. Because the body’s metabolism has stopped, the blood is not required to keep cells alive, and saline solution is the quickest way to cool the patient, explains Tisherman. With Rhee and others, Tisherman has spent two decades building a substantial portfolio of evidence to prove that the procedure is safe, and effective. Many of the experiments involved pigs inflicted with near-fatal injuries. Mid-operation, there was no doubt that animals were about as far beyond the realms of the living as it is possible to go and then return. “The pig is as white as you can get,” says Rhee. “It’s just pale, refrigerator meat.” If the animals had been cooled quickly enough, however – at around 2C a minute – nearly 90% recovered when their blood was returned to their bodies, after having lain in limbo for more than an hour. “It’s the most amazing thing to witness – when the heartbeat comes back,” says Rhee. Once the animals had returned back to more regular activity, the team then performed several tests to check that their brains hadn’t been damaged. For instance, before the procedure, the researchers trained some of the pigs to open a container of a certain colour, where an apple was hidden inside. After they had been revived, most of the animals remembered where to fetch their treat. Other pigs that hadn’t been trained before the operation, were 56

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nearly 90% recovered when their blood was returned to their bodies, after having lain in limbo for more than an hour. “It’s the most amazing thing to witness – when the heartbeat comes back,” says Rhee. instead taught the procedure soon after their recovery. They managed to learn just as quickly as the others – again suggesting that there had been no effect on their memories. Needless to say, gaining approval for human trials has been a struggle. Earlier this year, Tisherman was finally allowed to set up a pilot trial in Pittsburgh to treat patients suffering from gunshot wounds. The hospital sees about one or two such patients a month, meaning that some have already been treated with the technique since the trial began – although it is too early for Tisherman to speak about the results yet. He is also setting up a trial in Baltimore, Maryland, and all being well, Rhee will later be able to begin work at Tuscon’s trauma centre. As with any medical research, there will be some challenges in the transition from the animal experiments to the human trials. The animals received their own blood at the end of the operation, for instance – whereas the patients in this trial will need transfusions that

have been sitting in blood banks for weeks. And while the animals were under anaesthesia at the time of injury, the patients won’t have been, which could change the way their body reacts to the injury. Tisherman remains optimistic, however. “We generally think that dogs and pigs respond to bleeding in a similar way to humans.” Other doctors are watching with interest. “It’s very brave,” says Parnia. “Many of us feel that in order to preserve the brain, we have to cool the body a lot more than we’ve done traditionally. But people have been afraid.” If the trials go according to plan, Tisherman would like to extend the approach to other kinds of trauma. Gunshot victims were chosen for the initial trial because it is easier to localise the source of blood loss, but he hopes eventually to treat internal bleeding from an automobile accident, for instance. It may even, one day, be used to treat people suffering from heart attacks and other kinds of illness. Success could also pave the way for investigations into other forms of suspended animation. Some scientists are looking into whether a cocktail of drugs added to the saline solution pumped into body could further reduce the body’s metabolism and prevent injury. One promising candidate was hydrogen sulphide – the chemical that gives rotten eggs their smell – but although it has been found to reduce the metabolism of some animals, there is little evidence that it improves their chances of survival after a cardiac arrest. Tisherman instead thinks it will be better to find some potent antioxidants that can mop up the harmful chemicals that cause injury. For Rhee, the need for better treatment is all too urgent. He points out the fate of a patient he saw at the hospital only the day before we spoke. “He was shot in the epigastrium, right under the chest in the middle of the belly,” he says. The hospital staff tried everything they could, but he still died. “It’s exactly the kind of patient we hope we could repair if we’d been able to work in a less rushed fashion.” (By David Robson for BBC) SM

By Pete Jaison:

Can Van Gaal Bring Back the Crown? When Louis Van Gaal was appointed manager of the Red Devils, faith sparked back into the hearts of the supporters as they foresaw a man with the perfect mix of grit and composure who can take their team back to the top. But their confidence in the Dutchman must have taken a beating after the Swansea loss and it highlights the scale of United’s problems. The new era of Manchester United began with yet another loss to a team which a couple of years ago wouldn’t even dream about defeating United. he pre-season for Manchester United was indeed very successful as they managed to win all of their six games and that too against strong teams like Real Madrid and Liverpool. So the confidence that the players and fans have built up after each win must have evaporated after their match on Saturday. Although newly appointed captain Wayne Rooney did manage to equal scores after halftime with a stunner of a goal, his maiden match as captain will be hogged by memories that are better forgotten. The only question that any United fan will be dreading to think about will be - is Van Gaal’s tenure going to be similar to that of David Moyes‘? Moyes who was handpicked as the Manchester United manager by the legendary Sir Alex Ferguson failed to deliver any results for the Red Devils and collapsed to a seventh-place finish. Fitting into Ferguson’s shoes was always going to be very challenging and near-impossible but the manner in which United slumped was unacceptable. It was enough for the management’s patience to run out and they decided to sack Moyes and move on. The call for Moyes head was growing louder and louder with each dismal performance the devils put up. The free flowing attacking play of United which was feared across Europe was transformed into an ineffective defensive strategy that every team was playing. Though the last season Ferguson managed had a

manager was very shrewd, cunning and brings out the best in players?” “Which manager’s tactics were feared throughout Europe and can dismantle even the best of defenses?”. All of the answers pointed to one door. The door of the Netherlands national coach, Van Gaal .

Louis Van Gaal

similar team but Fergie did know how to extract the best from his players and hence the result was favourable another PL Championship. To drop from the No. 1 to No. 7 was hard to digest for any United fan as Manchester United struggling was what most teams hoped to see and there it was. Moyes kept saying that the results will get better but the evidence against him was so overwhelming that even if he said two twos are four nobody would have believed him! With the #MoyesOut campaign going strong in Manchester, the management was wondering who could be the game-changer that United so badly needed. And then they thought “Which manager has good experience handling strong teams and also rebuilding them?” “Which

A 150 million budget was handed to him to attract the best of players back to Trafford and he started in fine fashion roping in Luke Shaw and Ander Herrera, both of them highly promising talents. Since then, United haven’t bought a single player but was linked with plenty. The need for new players is urgent but also should be conducted with proper assessment. Whether Van Gaal does have it in him to bring back the glory to United only time will tell. The recent loss can’t be the sole-indicator to judge the team or their new manager. This is the manager which led the Dutch team to a third place finish in the World Cup when many thought that they wouldn’t even get past the group stages! The man is absolute class. So is United. Figure what’s going to happen. SM

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I N V E S T I N G

NOW, JHUNJHUNWALA GETS INTO PRIVATE UNIVERSITY SPACE India's best known individual investor Rakesh Jhunjhunwala and his guru Radhakishan Damani to join Ashoka University board. he education sector has caught the eye of two of India's top investors. Rakesh Jhunjhunwala, often called the 'Warren Buffett' of India, and his 'guru' Radhakishan 'RK' Damani will join the board of Ashoka University, which kicked off enrollments this year. They will jointly contribute at least Rs 10 crore to the university based in Sonipat, Haryana, according to people aware of the plan. "Rakesh Jhunjhunwala and RK Damani have in-principle agreed to make a contribution and be a part of the founders and board of trustees at Ashoka University," said Vineet Gupta, founder and trustee. "However, at this stage we would not want to focus on the amount of their joint contribution since we are at advanced stages of discussion with them and are awaiting confirmation of their exact donation amount though we do know the range of that amount. This range does fall in the founder and trustee bracket." He added: "As a policy and in accordance with the will of the founders, we have not revealed individual contributions of new founders so far." Damani is known as a maverick investor who has survived more than one capital market bust and also set up the D-Mart retail chain, which according to reports should reach revenues of Rs 4,500 crore this year. Jhunjhunwala, whose net worth is more than $1 billion, handles his own portfolio as a partner in his asset management firm. According to sources, those contributing Rs 10 crore and above are 58

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counted as founders and join the board of trustees. Some prominent trustees include Sanjeev Bikhchandani, founder of naukri.com; Vineet Gupta, MD, Jamboree Education; Puneet Dalmia, managing director, Dalmia Cements; Ashish Dhawan, founder, Central Square Foundation; and Jerry Rao, founder, MPhasis. Out of the 40 founders of Ashoka University, 14 are part of the board of trustees. Three months ago, Dilip Shanghvi, managing director of Sun Pharmaceuticals, signed up as a contributor but for an amount lower than Rs 10 crore. The privately funded institution, which has raised Rs 200 crore from its 40 founders, has shortlisted 350 students

Those who donate Rs 1-3 crore are sponsors, in the next tier is the council of advisors with Rs 5-10 crore and the board of trustees is anything above that.

for its three-year graduate programme starting this year, out of 3,000 applications. The college aims to raise Rs 300 crore in the next five years from its backers. Business leaders are investing in education in order to give something back to society, said Narayanan Ramaswamy, practice leader, education and skilling, KPMG India. "They are not investing for the returns. Education is an industry that, today, one wants to be associated with and it is their way of giving back to the society. Some may do it in form of time and those like Jhunjhunwala will do it with money," he said. While seeking support from India Inc for the university, the prime movers noticed that the greatest interest came from first-generation entrepreneurs and industrialists especially in IT, pharmaceuticals and the financial sector. There are three slabs for contributors - those who donate Rs 13 crore are sponsors, in the next tier is the council of advisors with Rs 5-10 crore and the board of trustees is anything above that. SM (Credit: ET)

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PA R E N T I N G

WHY KOCHI MARIN REMAIN IN HIGH Is it about Kochi or is it about Marine Drive? Which is hotter? Definitely, it is Kochi, right? PricewaterhouseCoopers predicts that Kochi will be one of the 6 tier-II cities to benefit readily from FDI in smaller realty projects, together with peers like Pune, Chandigarh, Ludhiana, Coimbatore, & Bhubaneswar. But Marine Drive is what makes it hotter. Apart from its natural proximity to the dual port facilities that drive the exceptional economy of Kochi, Marine Drive has developed an equally natural flair for attracting and housing the best new projects in the city. On the newer segment of Marine Drive is where almost all national level developers including Tata, Puravankara, Prestige, & DLF have created their mega projects. With the scenario being such it wonâ&#x20AC;&#x2122;t be surprising if Kochiâ&#x20AC;&#x2122;s famed Marine Drive find itself in high-buzz during the upcoming festive season of Onam-Diwali-Christmas when NRIs visit their hometown. But not all who wish for Marine Drive, and can afford it, are going to have an address here due to high demand.

Completed projects like Purva GrandBay as well as projects being executed rapidly like Tata Tritvam command a premium here, like anywhere else. 60

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E DRIVE HOMES DEMAND? I

s it about Kochi or is it about Marine Drive? Which is hotter? Definitely, it is Kochi, right? Well, how can it be otherwise with the Queen of Arabian Sea? Those unfamiliar with Kochi might wonder what is so great about this tier-II city?

Well, here it is. Barely a stone’s throw from the residential and commercial hotspot of Marine Drive stands the Kochi Port and the International Container Trans-shipment Terminal. Together they exported Rs. 25,664 crore worth of various Kerala produce in fiscal 2014. During the last 10 years, Kochi Port’s exports have grown by 227%. If you still wonder what the hell does Kochi exports so much to all parts of the globe, here is the break-up. Seafood worth Rs. 4453 crore, cashew kernels worth Rs. 2863 crore, and the rest made up by other major segments like spices, coir products etc. There is a huge affluent business and professional community related with this export industry, and this is one big reason why

Kochi is just not another tier-II city.

Construction is on at full swing in the city. Kochi now witnesses the construction of 500 odd high-rises every year. The city’s middleclass to upperclass is estimated to have a demand for over 20,000 new houses yearly. A survey carried out shows that the market for apartments specifically is huge, as 60% of apartment occupants are currently on rent. Though the recent regulatory change of allowing FDI in smaller-sized residential projects is expected to benefit metro cities first, Kochi is likely to be an exception according to some experts. PricewaterhouseCoopers, for instance, predicts that Kochi will be one of the 6 tier-II cities to benefit readily from FDI in smaller realty projects, together with peers like Pune, Chandigarh, Ludhiana, Coimbatore, & Bhubaneswar. Any new urban trend in India catches up fast in Kochi, with the latest being e-commerce. No wonder then that

sector giant Flipkart is already scouting for warehouse land at Kochi together with its searches in Ahmedabad, Hyderabad, and Chennai. Kochi Corporation too has been very proactive with Mayor Tony Chammany recently launching ‘Mission Kochi 15-0815’, a campaign for completing 32 public projects in 393 days. No wonder then that Kochi remains a hot destination. But Marine Drive is what makes it hotter. Apart from its natural proximity to the dual port facilities that drive the exceptional economy of Kochi, Marine Drive has developed an equally natural flair for attracting and housing the best new projects in the city. The permanent Laser Show at Rajendra Maidan, Marine Drive, and the Helium Balloon Project - both by GCDA are two of the upcoming projects here. Another one by the private sector is an international celebrity wax museum spanning 18,000 sq ft at Marine Drive. Such a museum will be just the third in

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the country after Lonavla and Mumbai, and Kochi was selected specifically over two popular tourist destinations in the state due to its sheer capability to attract large numbers of domestic as well as international tourists. The season is also getting juicier for Kochi with the festive season of Onam, Diwali and Christmas just round the corner. Kochi’s huge non-resident population is sure to visit their home city during this period, and probably consider buying luxury apartments too. There will be a big cultural extravaganza too at Kochi titled Bharatheeyam, by GCDA. Internationally renowned Indian artists like Mallika Sarabhai, Guru Manoranjan Pradhan, Madhu Natraj Kiran, Preethy Patel, Ramesh Narayan, Usha Uthup, and many others will be participating in this national festival that will see teams from all over the country including Kashmir, Ladakh, Jammu, Assam, Manipur, & Punjab, visiting Kochi. And the venue for this great event will be none other than Marine Drive. In short, the world will be at Marine Drive this December.

Kochi is ranked 6th in the country by CII for Liveability. The micro-market of Marine Drive is unique in the country for being a seaside yet next to a central business district. Customers looking to buy homes here belong to what Nielsen ranks as the 7th most affluent city in the country, thanks also due to the large NRI population. Marine Drive has basically two segments divided in almost equal halves by the prominent junction with Banerjee Road. On one side is Marine Drive’s high street where there are not much new residential projects. And on the other side is the newer segment, where almost all national level developers including Tata, Puravankara, Prestige, & DLF have created their mega projects. With the scenario being such it won’t be surprising if Kochi’s famed Marine Drive find itself in high-buzz during the upcoming festive and NRI season of Kerala. But not all who wish for Marine Drive, and can afford it, are going to have an address here.

One of South India’s most exclusive realty micro-markets, Kochi Marine Drive, recently got more exclusive. Because, the urban authority planning for the expansion of this waterfront locale is now planning to back off from the second phase development that would have created more land for development through reclamation.

Authorities overseeing Kochi Marine Drive’s equitable growth are at loggerheads. On one side is Greater Cochin Development Authority (GCDA) which has been planning for long for the second-phase development of Marine Drive. According to GCDA, it is still a dream project with massive tourism potential. But not everyone is agreeing.

Yet, Kochi Marine Drive is arguably the largest beneficiary of several newly approved infra projects in Kochi, if not Kerala.

Kerala Coastal Zone Management Authority (KCZMA) is spearheading the movement to block GCDA’s move. As per KCZMA’s view, the second-phase

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development will involve massive reclamation of backwaters. But that is not a fool-proof argument, as even the first-phase development that widened Shanmugham Road and created Marine Drive from the waters, during the 80s, was through massive reclamation. But times have changed, environmental concerns now eclipse every other concern, and at least for the time being, KCZMA appears to be winning. Their strategy of forcing GCDA to invest in a full-blown environmental impact study seems to be working. GCDA had expressed the stand that ‘wasting’ Rs. 4.5 crore for such a study alone, that too with an indefinite outcome, is not feasible. GCDA is clearly backing out, and Marine Drive space will remain limited. While the authorities are fighting such, those who are smiling at the outcome include all those who have a stake on the picturesque Marine Drive Walkway, which is really a 1.5 km stretch from Subash Chandra Bose Park in South to the first Goshree Bridge to Bolghatty Island, in the North, and even beyond. These stakeholders include malls, restaurants, offices, and, of course, luxury homes housed in the apartment complexes along the waterfront walkway and beyond to the Northern side. Recently the Marine Drive Walkway has been expanded towards the north side, from High Court Boat Jetty to the Goshree Bridge to Bolghatty Island, with its highlight being the uniquely beautiful Kettuvallam Palam (Houseboat Bridge). An even more picturesque stretch that

take special note. In fact, due to the upcoming NRI season in Kerala and the expected rush, such projects are already witnessing many site visits by early-birds among NRIs. They are exposed to the world’s finest living in North America, Europe, Middle East, Far East, Australia and elsewhere, and it is such customers that readily appreciate the painstaking design, planning, and execution seen in such projects. When it comes to the matter of a new home, these non-resident Keralites don’t mind spending over the top to get what they want. Site visits at such projects are also set to increase thanks to the numerous high-profile events being planned at Marine Drive for this tourist season. has recently emerged is continuing along in the northern direction, beyond the entry to the first bridge, where the iconic residential project of national stature, Tata Tritvam, is fast racing to completion. Very few are blessed to live by the sea. For the rest of us, seashores are where we go as tourists, fill our hearts with breeze, and come back with nostalgia. Most seasides in India are also not fit for modern day living - except for perhaps some exorbitant Mumbai locales - as they will be far away from the nearest central business district (CBD). But what if a seacoast is just 1 km away from the CBD? If you have even a little knowledge about real estate, we can see your enthusiasm turn to dismay. You are right; such a place won’t be available now, as

upmarket customers including NRIs would have made a beeline for it already. Even a re-sale at such a location would command a fortune. That is how Mumbai’s sea-facing locales like Malabar Hill and the apartments there came to cost a bomb. Because, there is no more land supply in such Mumbai seasides. High desirability coupled with low availability created this magic. Make no mistake, even Kochi’s Marine Drive has practically no more land. The timeless Arabian sea on one side, and the CBD at MG Road within a distance of 1 km have ensured it. That is why the remaining few ultrapremium apartments - if there are any left - make immense sense. They are practically the last chance to have a residential address at Marine Drive. The final call to live by the sea. NRIs, should

VERY FEW RESIDENTIAL PROJECTS ON MARINE DRIVE ARE NEXT DOOR NEIGHBOURS TO MANGALAVANAM AND ITS EXOTIC VISITORS. TATA TRITVAM IS A RARE EXCEPTION, WHICH ENJOYS PROXIMITY TO BOTH SEA AND THIS GREEN BIRD PARADISE.

The tall luxury residential projects of Marine Drive has also an added attraction on the other side. If one side is the enchanting sea, the other side is equally or perhaps more beautiful, due to the one and only Mangalavanam Bird Sanctuary, an ecologically sensitive and protected area. Basically a dense mangrove, Mangalavanam is noted for its large migratory bird population with an extensive survey identifying 194 birds belonging to 72 species. The virgin vegetation of Mangalavanam has attracted the sobriquet, the ‘Green Lung of Kochi‘. However, very few residential projects on Marine Drive are next door neighbours to Mangalavanam and its exotic visitors. Tata Tritvam is a rare exception, which enjoys proximity to both sea and this green bird paradise. Incidentally, don’t ever think Marine Drive is going to be an out-of-focus issue for either GCDA or Kerala Government, even if the second-phase expansion plan is dropped due to environmental concerns. In fact, Marine Drive is the one Kochi location that is going to be maximally benefited by some of the new Kochi projects proposed recently. One among them is the Tunnel Marine Aquarium and Entertainment Park project that has already been approved. Coming up on Marine Drive near the first Goshree Bridge to Bolghatty Island, the Rs. 80 crore project will span 1.30 SEASONAL MAGAZINE

acres of GCDA land and will be a sevenstorey air-conditioned complex. Being planned on a PPP model, the project aims to replicate the highly popular tourist attraction of a Tunnel Aquarium found at destinations like Singapore and Malaysia. Apart from the tunnel marine aquarium, the Complex will have a skywalk, research and seminar centre, 7D theatre, underwater restaurant, children’s play area, snack bar and fish sale counter. The tunnel marine aquarium will consist of a 30-metre-long acrylic walkthrough tunnel, which will have an automatic travelator with a 180-degree view of an ocean habitat with about 1,000 varieties of fish. The project is expected to be fast-tracked as there was no need for environmental clearance for the project, thanks to the location not falling under the Coastal Regulation Zone (CRZ) Act. However, separate permission required for bringing in marine species such as piranha, seahorse and penguins, will be sought for in the second phase of the project. The skywalk on the sixth floor will connect one end of the plot to the other, and will depict the cultural heritage of the state. The second most important project is perhaps a new Coastal Road connecting Vallarpadam Container Terminal Road with Pachalam Road via Vaduthala. Cochin Port Trust too is interested in this project as it can be used to decongest the Container Road. As such, it is likely to be included in the development plan of Cochin Port, thus speeding up processes like environment clearance and funding. GCDA is also looking to rope in support of the residents along the way, who will be benefited the maximum by this new road. Another project directly benefiting Marine Drive is the newly proposed Kochi Fast Ferry Service. The new service will also connect both ends of the Marine Drive Walkway, through water. The project is being jointly promoted by Kerala State Inland Navigation Corporation (KSINC), and GCDA, with the feasibility study done by Cochin University. The buildings to be constructed along with this project will have various facilities, including 64

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MANY OF KOCHI’S COLLEGES LIKE ST. THERESA’S COLLEGE AND MAHARAJAH’S COLLEGE THAT ARE VERY NEAR TO MARINE DRIVE ARE OF SO MUCH HERITAGE THAT THEY HAVE LANDED AUTONOMOUS STATUS RECENTLY, AND ARE EN-ROUTE TO UNIVERSITY STATUS THAT WILL ENHANCE THE VALUE OF RESIDENTIAL PROPERTIES HERE.

Can Marine Drive projects be good investments too? The dramatic way in which rupee has depreciated during the last couple of years is also helping NRIs to consider premium offerings on Marine Drive with renewed interest. For instance, ever since many of such projects were launched, rupee has depreciated against the dollar and dollar-pegged currencies like UAE Dirham, by more than 33%. The position of rupee against other major currencies like British Pound and Euro has been equally or even more advantageous for NRIs working in Europe or United Kingdom.

passenger/tourist amenities, ticket counters, jetty office, maintenance office etc. The new jetty has been designed in such a way that it can accommodate bigger vessels.

While that is about the quality and cost sides, NRIs who are accustomed to the big-city way of living, equally appreciate the proximity of such projects to Kochi’s CBD.

Every agency is in fact doing its part to leverage the natural strengths of Marine Drive. Kochi’s District Tourism Promotion Council (DTPC) is in fact all set to mount a befitting challenge to more established backwater tourist routes like Alappuzha and Kumarakom in neighbouring districts. The new service by Kochi DTPC will start from the Cruise Terminal at Marine Drive, and will go to the islands located far off from Kochi like Thanthonnithuruthu, Pizhala, and Moolampilly, and conclude at Chathanad. The tourists would also be given the opportunity to conduct brief visits into the islands during these stopovers. The new route will give a firsthand exposure to traditional cultivation of ‘Pokkali’ rice and prawns, as well as the working of intricate Chinese fishing nets.

Completed projects like Purva GrandBay as well as projects being executed rapidly like Tata Tritvam command a premium here, like anywhere else. Seeing is believing. Touching is believing. And no debates, there is nothing like a finished product in today’s tough realty market. Bangalore headquartered Puravankara Projects is all set to hand over its second project, Purva GrandBay, at Marine Drive, in the coming weeks. This follows the success of its first completed project, Purva Oceana here. There are only a few apartments left to be sold in the exclusively 3-BHK Purva GrandBay. Luxury projects here can appreciate like anything, not just due to land scarcity, but thanks to many recent strategic developments.

How about a new railway station within less than one km? Marine Drive will soon have that. What if it is a metro station? That is what Kochi Metro’s planned station for MG Road at Madhava Pharmacy Junction is going to achieve for Marine Drive and its residential projects. Imagine a state-ofthe-art metro station within walking distance! It is no utopia as the project is headed by Metro Man E Sreedharan and scheduled to be commissioned by 2016, less than three years from now. There is also no dearth of malls near such projects. While earlier the nearest retail destinations were Broadway, Bay Pride Mall, Penta Menaka, and GCDA Complex, with the recent opening of Centre Square Kochi by retail giant Future Group at MG Road‘s nearer end, shopping alternatives are getting too many. Lulu Mall, the biggest of them all, is also not far, and access to Lulu is going to get lightning fast from Marine Drive when Metro is going to be commissioned. Kochi’s Broadway - which is in reality one of its narrowest ways! - is the place to be if you don’t mind getting your hands and feet dirty in lieu of some great deals. This traditional mega market of Kochi is very near to Marine Drive, and is visited alike by the rich and the middleclass not only for its economy but for its collection of numerous speciality stores from where you can get everything - exotic dry fruits from Middle East to latest gadgets from China. If in doubt, visit Broadway during this Christmas season during evening, and it is sure to blow away one’s mind due

to electrifying shopping buzz. But even Broadway is gearing up to shed its old world systems and embrace the modern, like Marine Drive has done. A recently approved Rs. 25 crore project would revamp the historic trading area and landscaping of Broadway. Marine Drive excels in not only access to shopping destinations, but in access to educational institutions like St. Theresa’s College, Government Law College, Chinmaya School, Maharajah’s College, as well as several reputed professional colleges, premium schools etc. Many of these colleges are of so much heritage that they have landed autonomous status recently, and are enroute to university status that will enhance the value of residential properties here. Access to other distant areas of Ernakulam District as well as to even neighbouring districts like Thrissur, Kottayam, Alappuzha & Idukki, is easy due to the new expressway connecting Vallarpadam to Edappally, which makes both NH 17 and NH 47 less bothersome to reach. Cochin International Airport is also easily accessible from Marine Drive. Demand for premium housing at Kochi is also steadily on the rise due to various reasons. India’s only International Container Transshipment Terminal has come up at Vallarpadam, easily accessible from Marine Drive through the Goshree Bridges. Built and managed by Dubai Ports World (DP World), only the first phase of the Rs. 3200 crore project is now over, and it has already caused a spike in demand for premium housing. Petronet LNG’s second terminal in India has also been commissioned in Kochi recently. Incidentally, Vallarpadam Island, which is also quite near to Marine Drive, is traditionally famous for the Basilica of Our Lady of Ransom (Mary, Mother of Jesus), which has been designated a Major Pilgrim Centre by Indian Government and a National Pilgrimage Centre by Roman Catholic Church, attracting thousands of devotees and tourists every week.

Another major project that is coming up at Kochi is Smart City, a mega IT Park, by an arm of the Dubai administration, and is sure to add to quality housing demand. Already, there is a growth in IT professionals in the city due to the high growth at the statepromoted Info Park. New wide roads connect Marine Drive to Info Park and the upcoming Smart City. Marine Drive has also appealed to buyers native to other parts of India, as well as NRIs, due to Kochi’s heady mix of traditional as well as modern strengths. Buyers from outside Kerala include those who have fallen in love with Kochi’s natural beauty as well as investors looking for a second or third home elsewhere in the country. For such customers, this city becomes a natural alternative, as Confederation of Indian Industry (CII) has ranked Kochi at the 6th position in India for Liveability, while Nielsen has ranked it as the 7th most affluent city in the country. Despite being a bustling city, Kochi holds enough natural charms to rival any destination in India. The geography is that unique. Kochi is made up of the mainland, islands, backwaters, lagoons, seasides, and what not. Beaches like Cherai & Fort Kochi; islands like Willingdon, Bolghatty, Vallarpadam, & Vypeen; mega infrastructures like International Transshipment Terminal, Cochin Port, Cochin Shipyard; and heritage locations like Mattancherry and Tripunithura Hill Palace, are all destinations unto themselves. Even the famed hill station of Munnar is quite near, less than 130 km away, and a new planned road will cut even this distance by a third. Kochi has a generous coastline of 48 km, and is virtually at the sea level. The metropolitan limits of Kochi include a scattering of islands on the Vembanad Lake, ranging from tiny 250 acre islands to modest 1500 acre ones. Water bodies are the principal tourist attraction of Kochi, and the mesmerising sea-lake confluence can be explored from premium residential projects at Marine Drive. But time and space are definitely running out for owning such oceanfront homes. SM

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MS RAMAIAH UNIVERSITY

When MS Ramaiah Became a University, What Changed? MS Ramaiah needs no introduction in South India’s higher education landscape. And 20 years back, it needed no introduction even among North Indian aspirants. Because, if Bangalore was the Mecca of self-financing professional education in the country, MS Ramaiah Group of Educational Institutions was its Kaaba. n some ways, most of the latter day self-financing wonders like Amity, SRM, Lovely etc in North India was modelled on the success of Bangalore’s leaders like MS Ramaiah. But, unfortunately for MSR, many of them went on to greater glory and size in the newer private/ deemed university space. Maybe, MS Ramaiah was late into this game, starting only last year. But can a pioneer be late in any sense? It can’t be as Chancellor and MS Ramaiah’s son, Dr. MR Jayaram has been proving. Unlike many upstart private universities, MS Ramaiah University of Applied Sciences (MSRUAS) has burst on to the scene with much momentum, as it was created by the coming together of MS Ramaiah School of Advanced Studies (started in 1999), MS Ramaiah College of Hotel Management (started in 1993), MS Ramaiah College of

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Dr. MR Jayaram Chancellor

Pharmacy (started in 1992), MS Ramaiah Dental College (started in 1991) and the MS Ramaiah Advanced Learning Centre (started in 2012) - all full-fledged and reputed institutions of their own merit. The

result is multiple state-of-the-art campuses, as well as a faculty strength of 250 professors/lecturers to start with. Almost all most popular undergraduate programs like BTech, BDes, BHM, BPharm, PharmD, BDS etc and postgraduate programs including MTech, MDes, MBA, MHA, MPharm, MHM, MDS, MCom, Msc etc are available. From the viewpoint of prospective students, what has changed since MSR became a university? Maybe the fees has become a tad higher to accommodate for the higher infra costs but in lieu comes a more updated curriculum that is relevant to industry or professional practice. But there is no doubt that Dr. Jayaram and his team including Vice-Chancellor Prof. SR Shankapal would do everything in their might to make up for lost time in the private university space.

NIIT UNIVERSITY

Can NIIT University Leverage Its Content & Teaching Legacy? There was a time when IT coaching leader NIIT struggled with regulators like UGC for promoting programs like GradNIIT which was marketed like a degree. But today, NIIT Group has a university in its fold, that can award degrees on its own, in Rajasthan.

Befitting the corporate leader it is - it has two listed companies NIIT Ltd and NIIT Technologies Ltd - the campus and facilities is nothing less than extraordinary. With NIIT co-founders like Rajendra S Pawar and Vijay K Thadani taking active interest and leadership roles in the university, the momentum is indeed there. Both had done their graduate engineering programs at

Rajendra S Pawar

Vijay K Thadani

Indiaâ&#x20AC;&#x2122;s famed IITs. NIIT University claims to be a not-for-profit institution, but it is not helping it to break away from the selffinancing mould. While a luminary like Dr. Karan Singh has agreed to be the universityâ&#x20AC;&#x2122;s Chairperson, the promoters have roped in reputed researchers like Dr. Rajendra Kumar Pandey, as President, Dr. Parimal Mandke as Vice President, and Dr. Sunil Khanna, as the other Vice

President. Operations are made smooth by the presence of Air Commodore (retired) Kamal Singh AVSM as Advisor, and Major Gen Ashok Kumar Singh (retired) as Chief Operations Officer. But the biggest challenge will be whether NIIT University can leverage its strength in content development, teaching, software, and industry, to make the programs affordable enough for high-quality mainstream students.

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ITM UNIVERSITY

Can ITM-Gwalior Compete Against MP’s Premier Institutes? ITM University of Gwalior came into existence only in 2011. But ‘Institute of Technology & Management, Gwalior’ or ITMGwalior - a BTech/MBA/MCA institute - has been in operation since 1997. The prime mover behind ITM-Gwalior has been the edupreneur Rama Shankar Singh who now serves as the Chairman of the ITM group which goes by the brand name, ‘ITM Universe’, and as the Chancellor of the newer ITM University Gwalior. ny mention of the word ‘ITM University’ should be preceded by a qualifier like ’City Name’, as there are already three different ITM Universities in existence in this country. And wonder of wonders, all of them were ’Institutes of Technology & Management’ in their initial years. Apparently, this name as well as its acronym ’ITM’ seems to have been a favourite with edupreneurs based in Central India and Northern India. Anyway, ITM University Gwalior is totally unconnected with ITM University of Gurgaon, Haryana, and ITM University of Raipur, Chattisgarh. Though Chancellor Rama Shankar Singh runs ITM University through a Trust - like most edupreneurs do it in India - this is largely a family-led

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Rama Shankar Singh

University can offer any competition to Madhya Pradesh’s robust higher education sector led by IIT Indore, IIM Indore, the Indian Institute of Science Education and Research Bhopal, Maulana Azad National Institute of Technology Bhopal, IIITDM Jabalpur, IIITM Gwalior, SPA Bhopal, IIFM Bhopal, National Law Institute University

Kanu Priya Singh

enterprise with other trustees being family members like Kanu Priya Singh, Ruchi Singh, and Palak Singh. Having said that, there is no doubt that the top management also has enough independent professionals like Prof. Dr. Yogesh Upadhyay as Vice Chancellor and Dr. Omveer Singh as Registrar. The family leadership also doesn’t mean that they are unqualified for handling the key responsibilities. For instance, trustee Ruchi Singh, daughter of the founder, who handles administration as Vice President of ITM University, is an MCA holder, who studied at ITM Gwalior itself. Despite its young age, ITM University may do well in placements, due to the pedigree of the older ITM Universe, and with the likes of TCS and Infosys already visiting the campus. But the real challenge is whether the self-financing model followed by ITM Universe and ITM

Ruchi Singh

Bhopal, and All India Institute of Medical Sciences Bhopal. In addition to these premier institutes of national stature, there are more than a dozen public universities of repute that have affiliated more than 500 well-run colleges that offer subsidized professional, science, & humanities education in the state. But the emergence of private self-financing universities like ITM University Gwalior, despite this massive subsidized system, shows that there is still more appetite for all kinds of degree and postgraduate courses, especially among those students who can’t get an admission in any reputed and subsidised college, but can afford to pay the kind of high fees charged by these private universities. SM

SHARDA UNIVERSITY

Sharda University is for Those Who can Afford It “The world is here”, but is the reason for it the near 100% cut-offs in conventional universities like DU? And, of course, the most important question - even if the world is really here, should you be here? - except as a last resort? reater Noida based Sharda University is one of the larger private universities in the country, and one of the largest in Uttar Pradesh. Due to the limited number of seats at public universities and their affiliated colleges, and the resultant high cut-off marks, the burgeoning student population is always on the lookout for self-financing institutions like Sharda. Founded by edupreneur Pradeep Kumar Gupta, Sharda University belongs to the large Sharda Group of Institutions (SGI) which has a claim to be the largest educational group in UP. Other SGI constituents include Hindustan College of Science

P.K. Gupta Chancellor and Chairman

and Technology and the Hindustan Institute of Management and Computer Studies, both based in Mathura; and Anand Engineering College, Hindustan Institute of Technology & Management, Anand College of Education, and Anand College of Pharmacy, all based in Agra. Spread across the three cities of Greater Noida, Mathura, & Agra, SGI spans 167 acres of land and 3.5 million sq ft of built-up space. Together, these campuses teach over 25,000 students at a time, and has a faculty strength of more than 1250. Operational since 1996, SGI has so far produced 23,500 alumni, with many of them placed directly from the campuses. Sharda

University stands as the pinnacle of achievement for the Group, with its world-class infrastructure, compared with the rest of the Group colleges. But such posh nature comes at a price - SU is one of the more expensive places to study in NCR. For his part, founder Pradeep Kumar Gupta, who is also the Chancellor of SU and Chairman of SGI, argues that youngsters and their families need to invest in quality education. And quality education is not possible without associated high costs. SU provides quality by way of infrastructure like modern classrooms, labs, & libraries, but the same can’t be said of its faculty. Though the faculty has some eminent teachers from IIT/ NIT backgrounds, and though SU claims to pay well, faculty quality across all departments and teachers is not something Sharda is famous for. SU has also been criticised in social media by students for being too rigid in its nonacademic rules and regulations, like in its student vehicle parking rules. Other often cited complaints include high fines for various issues. The last date for applying for their undergraduate admission test -SUAT 2014 - was June 30th, but admissions remain open for some non-MBA postgraduate programs. Graduating or post graduating from an institution like Sharda University is likely to be a mixed bag, as though it can deliver a reasonable job for a hardworking student, academic respectability can be an issue when going in for further studies, especially in premier public institutes in India and abroad. It is well-known that Sharda University is a self-financing entity and that it has relatively low entry-barriers compared with public institutions. But exceptional students can pass this hurdle too, and go on for higher studies at reputed universities worldwide. SM SEASONAL MAGAZINE

SHIV NADAR UNIVERSITY

Shiv Nadar University is Philanthropic, But self Financing Internationally, it is rare that living legends in big business lend their names to an educational institution. There is no Bill Gates University, nor is there a Steve Jobs University even after that legend passing away a few years back. But India is a land of exceptions. rom the days of Independence or even before it, Indian business houses like Tatas, Birlas, Bajajs, and many more had no issues with using their family names for educational institutions. But it reached a new height when IT entrepreneurs like Azim Premji and Shiv Nadar lent their full names to start universities during their lifetime itself. Even if all private universities get blamed for operating as firstly moneymaking enterprises, who can say billionaires like Azim Premji and Shiv Nadar are operating in the private university space for making money? Nadar who was instrumental in creating India’s first PC, as well as companies like HCL Infosystems, NIIT, & the now high-flying HCL Technologies is worth more than Rs. 66,600 crore in personal wealth. It is more likely to be a passion for them, to leave a mark in this world during

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their lifetimes. What best field than higher education to achieve that? Even at worst, they can only be blamed for running their universities as profit centres. But Shiv Nadar University as well as his other educational ventures including schools are said to be a philanthropic activity of Nadar, created on a 10% donation of his personal wealth. The university has been innovative, quick to follow DU in launching 4-year degrees, but now finds itself under UGC scrutiny for the same. But that is part of being in India, a land unfortunate with policy flip-flops. The Gautam Buddh Nagar based private university is said to follow a ‘need-blind’ policy regarding admissions. What this means is that if the University’s board is convinced that a student is eligible to join the university it will pull out all the stops to ensure that the student is enrolled, whether he can afford it or not. This is

to attract the best students and ensure diversity on campus. But the question is whether, even with such policies in place, will the best students consider self-financing universities like Shiv Nadar? The problem is that a conventional university has a better reputation and still costs little compared with Shiv Nadar. For example, a BTech under Delhi University costs Rs. 10,000 a year, compared with Rs. 1,60,000 a year in Shiv Nadar University. But things will change if this private university by a corporate leader will eventually succeed in attracting industry endowments from its own group companies as well as numerous peers who very well know Nadar’s professionalism and vision. Until that happens, graduates from selffinancing setups like Shiv Nadar University are likely to be looked upon as inferior to graduates from India’s tier1 institutions like IITS, IIMs, NITs, government colleges, and aided colleges. SM

MANAV RACHNA INTERNATIONAL UNIVERSITY

Why this Self-Financing University is More Bullish on Start-ups Dr. OP Bhalla was a man who kept on searching throughout his life. Always searching for a bigger role for himself and his team, in this wide world. Originally a medical doctor, his quest for bigger and better opportunities led him first to real estate development, and then finally to selffinancing higher education.

hen he started out, lakhs of NCR students were literally fleeing their homes for South India, every year. Today, Dr. OP Bhalla is no more. But like all great entrepreneurs, he has left behind an enterprise that has a robust life of its own - the Manav Rachna International University (MRIU). In India’s great tradition of family-owned businesses, there are also enough leaders to carry on the flame at MRIU. Chief Patron Mrs. Satya Bhalla is not just Late Dr. Bhalla’s wife, but an experienced teacher and educationalist in her own might. Their son, Dr. Prashant Bhalla, currently the Chancellor at MRIU, is also highly experienced in the field, having completed 14 years of leadership at various Manav Rachna Educational Institutions (MREI) that together is home to 20,000 students at a time, across Faridabad, Gurgaon, Noida, & Sonepat, from pre-nursery to doctoral level. Dr. Amit Bhalla, also from the family, brings in young energy to the group in his current capacity as Vice President. However, like some of India’s largest and finest businesses, these edupreneurs too have left the day-to-

Dr. Prashant Bhalla, Chancellor

Late Dr. OP Bhalla, Founder

Dr. Amit Bhalla, Vice President day management of this educational enterprise to thoroughbred professionals. Vice Chancellor Dr. NC Wadhwa (IAS Retd.) and Pro Vice Chancellor Prof. Victor Gambhir personify this professional touch. Today thanks to this great team of family-led as well as professional team, Manav Rachna students have been scaling great heights in various competitions. Manav Rachna College of Engineering students bagged the first, second and third positions at the national round of Microsoft Imagine Cup recently. They won in the innovation category with products such as Smart Skull, an automatic system to alert an accident victim’s relatives and emergency services; MovAid, perhaps the world’s first personalised solution to measure and monitor the recovery of an individual after orthopaedic trauma rehabilitation, surgery, injury or joint replacement; and Project Respiron which has a device and smartphone application for an out-of-range alarm,

medication reminder, ‘puff counter’ and panic button for asthma patients. The students behind all these innovations are at Manav Rachna’s Dr OP Bhalla Incubation and Innovation Centre. Manav Rachna Educational Institutions (MREI) boast of having filed for 34 patents so far. Now, under Chancellor Dr. Prashant Bhalla’s guidance, MRIU is planning to have its own venture capital fund to support the start-ups on its campus. These and several other similar achievements by Manav Rachna students are significant because MRIU is no IIT and these students were not even NIT grade, as otherwise they wouldn’t have chosen the costly self-financing option offered by institutions like Manav Rachna. Though placements are today adequate at MRIU, if tomorrow the situation changes on the jobs front, the Bhallas are trying to create a Plan B at least for their smartest students. “In the current environment, getting a job is a challenge. We are encouraging students to move towards entrepreneurship. Students have come up with innovative ideas which are being nurtured and mentored by the entrepreneurship cell,” says Prashant Bhalla, Chancellor of Manav Rachna International University. SM

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SRM UNIVERSITY

PG Admissions in Science & Humanities Available at SRM Enrolments for its flagship BTech program is getting finished at SRM University, after its record-setting SRMEE which saw 2.12 lakh students participating. RM Chancellor TR Pachamuthu came third in the Perambalur Lok Sabha constituency ahead of Congress, and Tamilnadu Makkal Congress candidates, but behind the winning AIADMK candidate and the runner-up DMK candidate. But Pachamuthu has won in a way, as his alliance - the NDA - is ruling the country now. SRM too had reasons to cheer as this year’s chief guest at their convocation - Narendra Modi - is now the Prime Minister of India. Admissions that are now remaining open at SRM include PG courses in various science and humanities streams. Self-financing universities like SRM are not likely to be the first choice of students, but if they are unable to get into any mainstream college or university that offers high-quality subsidized education, institutions like SRM comes into their focus, provided they can afford it. At over 33,000 students, his SRM University is one of the largest selffinancing private universities in the country, ahead of even single-campus wonder Lovely, and next only to multicampus phenomenon Amity. And SRM is not known for low or reasonable fees. But SRM students don’t mind a damn, as they hail from 48 different countries, and they very well know that their parents can afford SRM. 72

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And what you get in return for the high fees compensates the pain, if any. If money can create a great educational enterprise out of nothing, it is SRM. Its main Kattankulathur Campus in Kancheepuram near Chennai is a 250 acres affair. A

Central Library with vast resources, air-conditioned auditorium that can accommodate over 4,000 people, IT and Knowledge Management system supporting over 5,000 computer systems and IT applications of the University, 32 megabytes per second Internet Connection, modern Lecture Halls & “Smart Classrooms”, wirelessenabled lab and campus, language lab - specializing in English, German, Japanese, French & Chinese, are only some of the academic facilities. TR Pachamuthu, Chancellor

Support facilities include around 40 Buses - AC & non-AC - that ply regularly between the college and the city, 15 Canteens - from fast-food to full-fledged cafeterias spread throughout the campus, retail outlets - Higginbothams book store, Airtel phone booths, Reynolds teller machines, Super Markets, Reliance Webworld with Java Cafe - all within the campus, a 3-Star SRM Hotel, and prayer halls for all major religions, are only some of the outstanding features of this 42-block masterpiece design.

Self-financing universities like SRM are not likely to be the first choice of students, but if they are unable to get into any mainstream college or university that offers high-quality subsidized education, institutions like SRM comes into their focus, provided they can afford it.

Though the other campuses at Ramapuram & Vadapalani (both at Chennai), and at NCR are relatively smaller, they too are not behind in offering state-of-the-art amenities.

but with Chinese, Thai, & Continental cuisines for catering to the tastes of its international students.

SRM also has extensive and modern hostel facilities, complete with not only South Indian and North Indian cuisine,

One can practically study any subject of oneâ&#x20AC;&#x2122;s choice - everything from humanities to medicine and everything in between. Placements too are available for the hardworking students.

Of course, it is another matter whether money can create a great university. Chancellor TR Pachamuthu has gone that extra mile to attract top-talented students to his institution, through various scholarship schemes, but the very fact that such an artificial step has to be adopted for attracting quality, means that the qualitystrategy at SRM is not holistic. Also, no one expects SRM, or any private university for that matter, to do anything beyond namesake charity. The only way out from this quality jinx is industry or philanthropy funded endowments, but that would again naturally flow towards the nationâ&#x20AC;&#x2122;s premier institutes due to their sole focus on merit, public nature, as well as higher transparency. No business house or donor wants to help a forprofit institute even if it is called a university. SM SEASONAL MAGAZINE

SYMBIOSIS INTERNATIONAL UNIVERSITY

HRD Minister Attends Orientation Program at Symbiosis, Group Branches Out to Madhya Pradesh New Union Minister of HRD, Smriti Irani had chosen Symbiosis International University’s Lavale campus to make an important public announcement - that HRD Ministry’s new policies won’t be set just by politicians and bureaucrats, but by committees comprising of students, academicians, and university/college managements. To facilitate the same, HRD Ministry will be coming out with an online infrastructure comprising of portals for all these stakeholders to discuss, brainstorm, and contribute. Though her interaction with Symbiosis students for their orientation program was brief, it goes to the credit of Symbiosis leaders Dr. SB Mujumdar and Dr. Vidya Yeravdekar that such an interaction could be arranged. The orientation program for new students followed another successful year in undergraduate admissions. Now, Symbiosis has launched its PG admissions other than MBA. In another high profile event, Symbiosis branched out to Madhya Pradesh to start a University of Applied Sciences at an initial cost of Rs. 150 crore, with the foundation stone laid by none other than the state CM, Shivraj Singh Chouhan. The new MP university is slated to commence admissions from 2016, and will have 5000 students studying there by the first 5 years. Symbiosis is also starting a new health sciences and technology park with Belgian technical assistance and an investment of Rs. 300 crore, which will also have a 200-bed charitable hospital. In all such efforts, Symbiosis is trying to be a Centre of Excellence, but it remains to be seen how far it can succeed in getting real academic respectability, being a very expensive self-financing institution. an self-financing universities ever become Centres of Excellence? Only a handful of them can even aspire for it. If a few among those aspirants can eventually become Centres of Excellence, that race will be led undoubtedly by Symbiosis International University (SIU). Pune headquartered Symbiosis won’t become a Centre of Excellence (CoEx) just because, it is one of the oldest and largest self-financing higher education setups in the country. Ironically, if it ever becomes a CoEx, it will be despite these two achievements - age and size. Because, tracing its roots back to 1971, this is perhaps the oldest group of self74

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financing institutes that turned into a deemed university. Most other selffinancing private universities or deemed universities (or their previous avatars) can’t be more than 43 years old. SIU is mind-boggling in its size too - with 9 campuses, 7 faculties, 43 institutes, and 107 programmes, no other selffinancing university even comes close. Now to the crux of the argument why Symbiosis is likely to lead the race to be the first CoEx among self-financing universities. Despite the early mover advantage, and despite the breadth as well as reach, Symbiosis has resisted the urge to grow student strength in geometric progression, which was the strategy employed by relatively newer selffinancing universities like Amity University, Lovely Professional

University, & VIT University. Even with all the impressive departments and infrastructure, and even with their more than four decades of experience, the student strength at Symbiosis International University is surprisingly small - just 13,501 students. What that means is very obvious. Education has not been an all-out business venture for Symbiosis Society that runs the university. They also had an eye on maintaining quality. For instance, out of their 486 professors, associate professors, and assistant professors, around 136 have PhD qualification. How can it be otherwise, as Symbiosis was founded and led by an academician, Dr. SB Mujumdar (MSc, PhD), who was formerly Head of Department of Botany, Fergusson College, Pune, for 20 years. He has been bestowed with Padma Shri and Padma Bhushan titles by India Government. A hands-on leader, Dr. Mujumdar who is 79 years old now, has already groomed the next-generation leader in Dr. Vidya Yeravdekar, who is not just his beloved daughter, but a rare multitalented personality who is a postgraduate doctor of medicine, a law graduate, as well as a doctorate holder in education. Dr. Vidya is currently Principal Director of Symbiosis Society. Despite thus being family-led, Symbiosis is a thoroughly professional university, managed by Dr. Rajani Gupte as Vice Chancellor, Col. Ajit Palekar (Retd.) as Registrar, and Dr. Shashikala Gurpur, Dr. Bhama Venkataramani, Dr. R. Raman, Dr. Rajiv Yeravdekar, Mr. Chandan Chatterjee, Dr. TP Singh, and Dr. Jyoti Chandiramani

international placements. There is also another reason why catering only to the well-off in the society makes sense to Symbiosis. From the ground up, from the very seed of thought, Dr. Mujumdar has designed Symbiosis to care mainly for the overseas students. And it is a given that those who can afford to come to India for their higher studies - whether they are foreigners or NRIs - can afford to pay more than resident Indians. Today, thanks also to Symbiosis, around 60% of overseas students studying in India are studying in Pune. SIU has students from 75 different countries, which is not an easy feat, if you ask any self-financing university or even any international school. as members of the Academic Council.

luxury to think so.

Though newer private universities like Amity, LPU, & SRM might have overtaken Symbiosis in student strength, let no one be under the impression that SIU is not viable for sustenance as well as expansion. In fact, when it comes to the matter of long-term financial viability, SIU is likely to lead almost every other selffinancing university, both private and deemed, thanks to their industryleading fee structure.

But for SIU, avoiding the economically disadvantaged or middleclass students is not a problem at all, as the university gets multi-times applications compared with its annual intake for almost all courses.

For instance, a 2-year MBA at Symbiosis Institute of Business Management Pune (SIBM-P) will cost around Rs. 8,90,000 in tuition fees alone. A 5-year BA LLB at Symbiosis Law School Pune (SLS-P) will cost around Rs. 7,05,000. When it comes to engineering, a 4-year BTech at Symbiosis will cost Rs. 7,80,000. So, the long-term viability and expansion potential of Symbiosis is not something to be doubted, and it also proves that Dr. Mujumdar and Dr. Vidya are not just educationalists but excellent business leaders too. However, needless to say, Symbiosis is not for the economically disadvantaged students, or even the middle-class community. It is for those who feel proud that they are selffinancing their education without burdening the government, and of course for those who can afford the

However, this kind of high demand at Symbiosis is not without its pitfalls. Recently two men were booked by police for allegedly duping a father off Rs. 10.5 lakh by promising an MBA seat for his son at Symbiosis. In an even more serious incident, Symbiosis recently sacked a Director of one of its institutes for allegedly collecting huge sums from around 10 students by promising them

The orientation program for new students, attended by Minister Smriti Irani, followed another successful year in undergraduate admissions. Now, Symbiosis has launched its PG admissions other than MBA.

In fact, SIU has one of the most advanced international student assistance cells with tailor-made solutions for different categories like NRI Candidates, PIO Candidates, Foreign Candidates, and Overseas Citizenship of India (OCI). Symbiosis also excels in domestic penetration, with students from all Indian states studying here. SIU is not just financially successful, but a success on the quality front as evidenced by their NAAC accreditation of ’A’ Grade. But so are many other larger selffinancing universities. So, to move up from the ’Very Good’ NAAC status that SIU shares with many others, and to move to being a Centre of Excellence would take many years of restrategizing and sacrifices. A good start would be strategic steps like rationalizing the fee structure, making the university more inclusive and not elitist, attracting real student talents (with top scores in national-level public entrance tests) with scholarships and incentives, improving corporate governance to avoid fraudulent activity, and improving faculty standards from being just good to being the best. Otherwise, Symbiosis runs the risk of being only one among the best selffinancing universities for the rich and SM relatively less meritorious. SEASONAL MAGAZINE

SASTRA UNIVERSITY

SASTRA Performs Well on Admissions, Conducts a Noteworthy 28th Convocation It has been yet another blockbuster season for Thanjavur based SASTRA University in placements, and admissions. hile the end of last academic year was suitably concluded with ample placements from blue-chip companies like TCS, the admissions for this year has been equally strong. Post the release of rank list on June 7th, classes for its core BTech program commenced on June 30th. Unlike its peers SRM and VIT, SASTRA runs no entrance test of its own, but bases its admission on a combination of the benchmark JEE-Main exam and plus-

two marks, which is a very transparent process. SASTRA also doesn’t believe in university rankings by various media organizations. SASTRA’s 28th Convocation on August 9th, was a high-profile affair with VS Ramamurthy Director, National Institute of Advanced Studies, delivering the convocation address and the award of degrees. Reflecting and continuing SASTRA’s research focus, there were many PhD graduands too in this year’s Prof. R. Sethuraman, Vice-Chancellor

convocation. Meanwhile, many of SASTRA’s faculty too have been proving their mettle on the international stage. Recently, Dr. Srinivasan Vedantham, Professor in SASTRA’s School of Chemical & Biotechnology bagged the prestigious 2014 BASF Newtrition Asia Research Grant. This research grant is awarded by global chemical major BASF. BASF’s Scientific Advisory Committee comprised of scientists from academia, government & industry. The awards committee selected Dr. Srinivasan’s proposal for a 25000 Euros grant, together with three proposals from Chinese universities and one from an Indonesian university. SASTRA’s philanthropic face again came out in the open with the media coverage about the Kumbakonam verdict that saw 94 students die in a school blaze in 2004. SASTRA had financed the entire studies of Madhumita, a survivor, from Class 6 to her MSc and BEd. Growth has been so far so good at SASTRA. If you want a typical engineering college that turned into a university overnight, look no further than Shanmugha Arts, Science, Technology, & Research Academy (SASTRA) University that started its life simply as Shanmugha College of Engineering in 1984. But so has been the majority of selffinancing universities in this country, almost all of them starting their life as self-financing engineering colleges.

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But there has been certain differences too for SASTRA compared with the typical private universities.

around 10,000 students indicating that it is not a money-making enterprise alone.

For one, it is technically not a private university but a deemed-to-be university, which is a slightly elevated standing in some regards, as the status is accorded by the Central Government rather than any state government.

The staff ratio is also appreciable at 700 staff, in comparison with the prevailing ratio at many private universities. The infrastructure is also commendable at 30 lakh sq ft of builtup space.

But so has been state-level competitors like VIT University and SRM University, and this status is really a side-effect of Tamilnadu State not allowing private universities on its own. However, it goes to the credit of SASTRA University that they have taken this elevated status seriously. SASTRA has always tried to be a quality institution, even though the framework for a self-financing university - whether it is private or deemed - doesn’t foster a singular focus on quality.

Another aspect that should require special mention is SASTRA’s unique focus as well as achievements in the field of research. SASTRA has been recognized as a Scientific and Industrial Research Organisation (SIRO) by the Department of Scientific and Industrial Research, Govt. of India, enabling SASTRA to undertake research for various agencies like AYUSH, CMRI, CSIR, DBT, DRDL, DRDO, DST, ICMR, ISRO, etc.

How far has it succeeded in its quality pursuit may be open for debate. But certain quality aspects stand out.

But it is another matter that among academic research rankings based on citations, SASTRA is yet to achieve a landmark ranking, which some SASTRA scholars are attributing to a flawed metric.

Firstly, unlike peers VIT, SRM, or Lovely, this Thanjavur based university has not grown its admission intake mindlessly. Even now, SASTRA is home to only

The University’s patronage for the mathematical genius Ramanujan through various awards, conferences, and institutions that further research

in mathematics is noted even abroad. SASTRA also follows one of the most transparent and fair admission procedures among all self-financing universities. For instance, in their core BTech course, around 70% seats are filled on the basis of JEE-Main rankings. Which is, fair enough and transparent enough. Industry too is taking SASTRA seriously, with one example being the recently established Microsoft Technical Services Lab inside the SASTRA campus by the software major. On the placements front, SASTRA is a reasonable success, with the likes of TCS favouring the institution’s candidates year after year. That completes the circle for many students and parents, as what more could they ask for? Even if they can’t get to study computer science at an IIT, NIT, or even a government engineering college, they can study CS at SASTRA and even land a job with an IT major. Undoubtedly SASTRA fulfils that value proposition that is the basic USP of a self-financed university. SM

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GENERAL INSURANCE

New India Assurance to Face Tougher Competition Soon G Srinivasan must be a happy man. He had the rare distinction of presenting one of the first and heftiest cheques to the new Finance Minister. As New India Assurance’s Chairman & Managing Director, It was he who presented the Rs. 220 crore cheque to Arun Jaitley. It was the result of an year of blockbuster performance. As the largest among the four large PSU general insurers, New India Assurance’s global premium has crossed Rs. 14,300 crore in FY’14. And for the month of May, the latest month for which stats are available, New India Assurance topped in premium collection at Rs. 886.06 crore. But National Insurance Company is close on heels with a premium collection of Rs. 867.79 crore, and more importantly National’s growth rate at 15.1% is significantly higher than New India’s 13.8%. But the biggest challenge to New India Assurance is not going to come from National or any of its peers. It is going to arise from Arun Jaitley’s budget speech, which has pushed for raising the FDI cap in insurance from 26% to 49%. This will undoubtedly result in more overseas players and

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more overseas capital flowing into the Indian industry. Estimates range from a modest $2 billion to a whopping $25 billion within the next five years. Whatever be the final figures, the immediate benefit is likely to be for private general insurers who already have an overseas partner. The general insurance industry is starved for capital, and this can energize such private general insurers to a great extent. Already the private insurers are breathing down the necks of PSU insurers like New India. For example, in the month of May, while PSU general insurers clocked 55.3% of premiums, private players were not far behind with the remaining 44.7%. It is a far cry from LIC’s dominance against the private players in the life insurance segment. Meanwhile, New India Assurance has also shown less flexibility in tender participation for large group schemes. It recently lost out to United

G Srinivasan

India Insurance for a mega scheme of Tamilnadu Government in which the state would pay Rs. 150 per month for each senior citizen / pensioner for providing health insurance. But the award-winning leader that he is, New India’s G Srinivasan is likely to compete from the frontline with new strategies. But the challenge is whether the entire New India organization is geared up to fight these emerging challenges. For instance, in a major setback to New India, a consumer forum in Mohali had ordered New India to pay a car owner Rs. 13 lakh, after the company denied this rightful payment on the flimsy ground that his driving licence was “fake”, whereas the forum’s investigation found that the owner had only submitted his license for renewal. India is not the place for such business tactics, and neither is 2014 the time for such tricks. Instead, with 49% FDI round the corner, it is high time that New India wakes up to what all it should really SM attempt to fight back.

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Q1 RESULTS ANALYSIS

SENSEX PARTY OVER.

PERFORMERS’

PARTY BEGINS!

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’

t takes political will to move markets, and Modi did that. Almost every stock surged without any regard for its intrinsic value. But Modi is not staying put at the party he began. With many crucial state elections just around the corner, India’s PM has got other priorities like attending to its poor and attending to its farmers, who make up more than half of India. That is why the Modi-Jaitley budget signalled the beginning of the end for the Sensex party. Many industry associations like the gold retailers and the realty/infra players learned it the hard way, when many of their requests fell on deaf ears at Finance Ministry. And the massive fine on Reliance, that was started by UPA, continues at a higher pace under BJP-NDA. The Nation has got other priorities, not just industry promotion, by way of corporatefriendly news every week. So the subsidy-regime stays, food security act stays, NREGA stays, and even Aadhar is back with a bang under Modi’s personal guidance. What is more, Modi even proved that he is willing to take on the ire of the entire world at WTO to try for a more timely approval for India’s massive public food procurement program. BJP’s first big corporate

reform of 49% FDI in insurance has also run into rough weather with Left parties and insurance trade unions opposing it naturally, and Congress opposing it as a tit-for-tat for BJP’s opposition to the move earlier. Modi’s Independence Day Speech was also more populist than about economic reforms. The end result of all these has been that Sensex and Nifty tumbled twice post the budget. Even more worse, the high-beta mid-cap and small-cap stocks got massacred. The message is clear. The movement from now on will be based on fundamentals. Not on government policy, or fund flow, or the resulting technical momentum. And right in time to assess current fundamentals, have come in the Q1 results. For many discerning market observers, including Seasonal Magazine, it was conviction to what they had always believed - that the market was running ahead of fundamentals. More companies have posted depressing results than impressive results this time, so much so that, even a flat to slightly negative result is now seen as positive by the market. Seasonal Magazine takes a look at Q1 results to distinguish between the wheat and chaff, so that you can switch over to the winning side. Welcome to the new Performers’ Party.

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Q1 RESULTS ANALYSIS

INFOSYS DELIVERS YET ANOTHER WEAK QUARTER, AS MURTHY AND SHIBULAL BID ADIEU

nfosys, the second largest software services exporter in India, has reported a consolidated net profit of Rs 2,886 crore in April-June quarter, which is a de-growth of 3.5 percent compared to Rs 2,992 crore in previous quarter. However, year-on-year growth in profit was 21.6 percent. Revenue as well as operating performance fared slightly better. Consolidated revenue fell only 0.8 percent (up 13.3 percent on yearly basis) to Rs 12,770 crore during April-June quarter from Rs 12,875 crore in previous quarter and dollar revenue stood at USD 2,133 million, up 1.95 percent on sequential basis. Infosys maintained its dollar revenue growth guidance for the current financial year 2014-15 at 7-9 percent, saying it expects revenue in rupee terms to grow by 5.6-7.6 percent. Outlook for FY15 was based on conversion rate of 60 per dollar. “We continue to enjoy the confidence of clients by demonstrating superior execution capability and value realisation,” says SD Shibulal, CEO and Managing Director, who will step down with effect from end of business hours on July 31, 2014. The company is in the midst of a CEO transition and hence there was no change in its strategic guidance. During the quarter, it appointed Dr Vishal Sikka as the chief executive officer and managing director with effect from August 1. An extraordinary general meeting of the shareholders has been convened and will be held on July 14 to approve his appointment. Executive chairman Narayana Murthy and executive vice chairman S Gopalakrishnan stepped down during the quarter. President and whole-time director, UB Pravin Rao, who was elevated as chief operating officer of the company, says, “We saw positive trends in large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing

volumes.” He adds that employee attrition rates are worrisome and the company is implementing various initiatives to retain good talent. Attrition rate during the quarter jumped to 19.5 percent from 18.7 percent in previous quarter, which was worrisome for the company. The software services exporter says it added 61 clients during April-June quarter and USD 100 million clients increased to 12 from 13 sequentially. Active clients were 910, increased from 890 in March quarter and 836 in year-ago period. Infosys says its liquid assets including cash and cash equivalents, availablefor-sale financial assets, certificates of deposits and government bonds were Rs 29,748 crore as on June 30, 2014 as compared to Rs 30,251 crore as on March 31, 2014.

TTK PRESTIGE UPS SALES, BUT EXPENSES EAT IT UP

itchen appliances manufacturer TTK Prestige reported net profit at Rs 25.81 crore in April-June quarter, unchanged compared to Rs 25.79 crore in same quarter last year, dented by higher expenses despite lower tax and finance cost. Total income of the company increased 10 percent on yearly basis to Rs 336.4 crore from Rs 306.3 crore during the same period while total expenses jumped to Rs 301 crore from Rs 267.36 crore lead by higher raw material cost, employee costs, and depreciation. Other income slipped to Rs 1.22 crore from 1.73 crore year-on-year while finance cost declined to Rs 59 lakh in June quarter from Rs 3.07 crore in year-ago period and tax expenses dropped to Rs 9.37 crore from Rs 11.04 crore.

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TCS CONTINUES DREAM RUN, EXPENSIVE VALUATIONS DRIVE MARKET CAP TO RS. 5 LAKH CRORE

ata Consultancy Services (TCS), India's largest software services exporter, reported first quarter consolidated net profit at Rs 5,057 crore, down 4.5 percent. Net profit in March quarter was Rs 5,296.7 crore. But revenue (in rupee terms) grew 2.6 percent sequentially to Rs 22,111 crore and dollar revenue shot up 5.5 percent (constant currency revenue growth at 4.8 percent) to USD 3,694 million in the quarter ended June 2014. Its dollar revenue growth was quite strong compared to its closest peer Infosys reported at 2 percent. Exceptional gain for the quarter was Rs 489.75 crore on account of change in depreciation policy with effect from April 1, 2014 and forex gain was Rs 239.7 crore. Other income increased to Rs 787.15 crore from Rs 720.89 crore during the same period. "Robust volumes and healthy growth across all industries and key markets helped TCS start the new financial year on a strong note as broad-based business portfolio continues to deliver results," said N Chandrasekaran, CEO and MD. During the quarter, TCS posted the highest incremental revenue of USD 191 million in the last 15 quarters driven by holistic growth across markets led by North America, AsiaPacific, India, UK, Europe. "Growth was seen across all industry segments led by media & information services, life sciences, retail, telecom with all non-BFS verticals growing in excess of 5 percent sequentially," said the company. The software services provider reported volume growth of 5.7 percent in the quarter gone by while its peer Infosys' volume growth was 2.9 percent. Operating profit margin was at 26.3 percent, down 285 basis points compared to 29.15 percent in March quarter. The rupee movement impacted profit margins by 73 bps in Q1. Rajesh Gopinathan, CFO of the

company said, "Disciplined stance in operations helped the company mitigate impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter." The company added five new USD 50 million-plus clients in Q1. "We had 7 large deals during the quarter and currently at least 8 large deals are under discussion," said Chandrasekaran. Total employee strength at the end of June quarter was 3,05,431 on a consolidated basis with the company is on track to hire 55,000 people in FY15.

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Q1 RESULTS ANALYSIS

SOUTH INDIAN BANK GROWS TOPLINE, BOTTOMLINE BENEFITS FROM NEW DEPRECIATION POLICY

outh Indian Bank's first quarter net profit was up by 9.75 percent to Rs 126 crore compared to Rs 114.8 crore in same quarter last year. Net interest income rose to Rs 341 crore versus Rs 328 crore, Y-o-Y. The bank's Q1 net NPA was up at Rs 310 crore versus Rs 281.6 crore and gross NPA was up at Rs 517 crore versus Rs 432 crore on sequential basis. The bank has made an exceptional gain of Rs 43 crore on change in depreciation policy. Its Q1 provisions stood at Rs 94.6 crore as against Rs 28.3 crore Q-o-Q and Rs 105.3 crore Y-o-Y.

KOTAK MAHINDRA BANKâ&#x20AC;&#x2122;S PERFORMANCE REASONABLE, SETTLES FOR A LESSER ROLE IN MCX

rivate sector lender Kotak Mahindra Bank reported stable earnings with the consolidated net profit rising 11.3 percent on yearly basis to Rs 698.3 crore during April-June quarter on account of lower provisions and higher other income but higher operating expenses limited the profitability of the bank. The bank recently opted to buy a 15% minority stake in beleaguered MCX commodity exchange, as against its ambition of buying a 25% stake, due to new conditions imposed by FMC on the buyer. Consolidated net interest income rose 9.9 percent to Rs 1,510.07 crore compared to Rs 1,374.04 crore year-on-year while other income jumped 38 percent to Rs 1,871.27 crore during June quarter aided by profit on sale of investments including revaluation of insurance business, and which also include commission, fees, exchange, and brokerage income. Operating expenses during the quarter shot up 42.9 percent to Rs 2,322.82 crore compared to Rs 1,625.72 crore in same quarter last year due to policy holdersâ&#x20AC;&#x2122; reserves, surrender expenses and claims. Asset quality of the bank improved in the quarter gone by on sequential basis. Gross non-performing assets (NPA) declined to 1.56 percent versus 1.63 percent quarteron-quarter and 1.58 percent year-on-year while net NPAs declined to 0.81 percent in June quarter from 0.88 percent in year-ago period Q-o-Q (0.80 percent in Q1FY14). Provisions and contingencies stood at Rs 27.24 crore during first quarter as against a write-back of Rs 0.6 crore in previous quarter. In Q1FY14, provisions were Rs 159.55 crore. Standalone net interest margin declined to 4.8 percent in June quarter from 5 percent in corresponding quarter of last fiscal. Advances as on June 30, 2014 were up 13 percent Y-o-Y to Rs 56,922 84

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crore while without considering commercial vehicle/ commercial equipment lending, the growth in advances was 20 percent Y-o-Y. Savings deposits of the bank grew 37 percent on yearly basis to Rs 11,013 crore while total deposits jumped 17 percent to Rs 61,407 crore in the quarter ended June 2014. The bank restructured loans were worth Rs 145 crore during the quarter as against Rs 6 crore in same quarter last year.

FEDERAL BANK PERFORMS WELL, MAIN CONTRIBUTOR IS IMPROVED ASSET QUALITY

rivate sector lender Federal Bank reported strong earnings with the first quarter net profit surging 108 percent to Rs 220.2 crore compared to Rs 105.7 crore in same quarter last year, aided by sharp fall in provisions and improvement in asset quality performance, and despite fall in other income. Net interest incomegrew 10.7 percent year-on-year to Rs 564.2 crore during April-June quarter while other income fell 27.5 percent to Rs 156.54 crore from Rs 215.79 crore yearon-year. Net interest margin was down to 3.25 percent from 3.6 percent on sequential basis. On the asset quality front, gross non-performing assets (NPA) declined 24 basis points sequentially and 129 bps on yearly basis to 2.22 percent and net NPA declined 6 bps Q-o-Q and 23 bps Yo-Y to 0.68 percent in the quarter gone by. Provisions saw a significant fall during the quarter, down to Rs 22 crore compared to Rs 55 crore in previous quarter and Rs 235 crore in same quarter last year. In Q1FY14, provisions of the bank had spiked 290 percent Y-o-Y to Rs 245 crore that resulted in PAT falling 44 percent Y-oY to Rs 106 crore.

LAKSHMI VILAS BANK PERFORMS REASONABLY, ANNOUNCES 5:6 RIGHTS ISSUE

rivate sector lender Lakshmi Vilas Bank posted a 11 percent jump in its June quarter net at Rs 28.15 crore. The Karur, Tamil Naduheadquartered bank has registered a post tax net profit of Rs 25.34 crore in the corresponding period last year. Its total income moved up to Rs 587.12 crore from the Rs 532.45 crore in the year-ago period, while the net profit before tax moved up to Rs 37.15 crore as against the Rs 34.34 crore in the year-ago period. On the asset quality front, its gross non performing assets ratio improved to 3.96 percent as against the 5.27 per cent in June 2013 and 4.19 percent in March 2014. It's provisions for bad assets also declined to Rs 32.60 crore from the Rs 49.90 crore in the year-ago period. Meanwhile, the bank announced a rights issue programme under which an investor holding six shares shall get five new shares at the rate of Rs 50 per rights equity share. SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

BAJAJ FINSERV PERFORMS WELL IN Q1

ajaj Finserv has reported a consolidated sales turnover of Rs 1,629.07 crore and a net profit of Rs 319.37 crore for the quarter ended Jun '14. Other income for the quarter was Rs 0.86 crore. For the quarter ended Jun 2013 the consolidated sales turnover was Rs 1,269.81 crore and net profit was Rs 278.80 crore, and other income Rs 1.06 crore.

BAJAJ AUTO HIT DOMESTICALLY, EXPORTS SALVAGE SOME PRESTIGE

L&T FINANCE HOLDINGS’ NPAS SPIKE, BUT ECLIPSED BY SOARING PROFITS

wo-wheeler maker Bajaj Auto’s first quarter net profit rose marginally to Rs 740 crore compared to Rs 737.7 crore in same quarter last year, dented by weak operational performance and higher depreciation charge. Total revenue grew 7 percent to Rs 5,252 crore in June quarter from Rs 4,911 crore in corresponding quarter of last fiscal. Revenue growth was higher than growth in volumes due to higher export realisation. Overall realisation went up 1 percent Q-o-Q (up 6.2 percent Y-o-Y) at Rs 53,236 per unit due to 380 basis points sequential rise in share of exports to 44.7 percent. Overall volumes grew 0.9 percent Y-o-Y to 9.88 lakh units in Q1 with the domestic volumes falling 11.5 percent Y-o-Y to 5.47 lakh 86

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units. Considerable weakness in domestic volumes was due to competition and market share loss in Discover brand. However, exports grew 21 percent to 4.41 lakh units versus 3.62 lakh units during the same period. Exports by value was the highest ever at Rs 2,251 crore during the quarter. With exports to Egypt resuming in July and relative normalcy across major geographical markets, outlook for coming quarters is encouraging, according to the company. Reported operating profit declined to Rs 1,039 crore from Rs 1,056 crore year-on-year and margin slipped 170 basis points to 19.6 percent in the quarter ended June 2014. Cash and cash equivalents as on June 30 stood at Rs 9,255 crore as against Rs 7,759 crore in the year-ago period.

&T Finance Holdings’ AprilJune quarter (Q1FY15) consolidated net profit jumped nearly 100 percent at Rs 285.9 crore versus Rs 145 crore in the same quarter last year. The company's net interest income (NII) was up by 24 percent at Rs 577 crore against Rs 466 crore, Y-o-Y. Gross non-performing assets (NPAs) increased to 3.57 percent from 3.18 percent and net NPAs jumped to 2.67 percent from 2.29 percent, Q-o-Q.

DCB BANK’S NII GROWTH GOOD,PROFIT GROWTH AVERAGE, ASSET QUALITY SLIPS

rivate sector lender DCB Bank ‘s first quarter net profit increased 4.2 percent to Rs 44.6 crore compared to Rs 42.8 crore in same quarter last year, dented by higher provision, lower other income, and tax expenses. Net interest income rose 67.4 percent on yearly basis to Rs 139 crore in year-ago period supported by one-off interest income of Rs 30.4 crore. “Increase in branch network is putting some pressure on cost/income ratio. NPAs remain in control, however, a few accounts in SME and mid corporate continue to have payment delays. We have a few challenges in stepping up fee income and we are hopeful of improving the same in 6-9 months,” said Murali M Natrajan, MD and CEO. Asset quality

has weakened during the quarter with the gross non-performing asset (NPAs) rising 9 basis points sequentially (down 163 basis points Y-o-Y) to 1.78 percent and net NPAs increasing 6 bps Q-o-Q (up 13 bps on yearly basis) to 0.97 percent during April-June quarter. Provisions more than doubled (up 1.7 times Y-o-Y) to Rs 23 crore from Rs 11 crore quarter-on-quarter. Provision coverage ratio declined to 78.58 percent in June quarter compared to 78.84 percent in same quarter last year. Operating income of the bank climbed 20 percent on yearly basis to Rs 92.24 crore while other income (non-interest income) fell 23.5 percent to Rs 34.5 crore during the same period. As of June 30, 2014, bank’s advances grew 28 percent to Rs 8,291

ALSTOM T&D DELIVERS HIGH POWER RESULTS

lstom T&D India, an arm of French firm Alstom, reported 89 per cent rise in net profit at Rs 28.4 crore for the quarter ended June 30 on the back of higher income. The company's net profit in the corresponding quarter of the last fiscal was Rs 15 crore, the company said. Total income from operations of the power transmission and distribution equipment firm went up to Rs 673 crore over Rs 586.7 crore in the corresponding quarter of the year-ago period, it said. The total expenses of Alstom T&D India increased to Rs 616.1 crore, over Rs 545.9 crore in the same quarter of the last fiscal, the company said. GE Energy Europe had earlier made an open offer to power equipment maker Alstom T&D India for buying 25 per cent stake in the company for Rs 1,672.3 crore. "As per the announcement, the acquirer will proceed with offer, only if the underlying transaction to the offer is consummated. The board

of directors of ultimate holding company, Alstom SA, has also made its recommendation in favour of acquisition of its thermal power, renewable power and grid sectors, as well as its corporate and shared services," the company said.

crore and deposits rose by 27 percent year-on-year to Rs 10,552 crore. Capital adequacy ratio (as Basel-III norms) during April-June quarter stood at 13.63 percent versus 13.71 percent Q-o-Q.

KANSAI NEROLAC IS VERY GREEN IN Q1

ansai Nerolac Paints reported 19.77 percent increase in standalone net profit at Rs 72.98 crore for the first quarter ended June 30. The company had reported net profit of Rs 60.93 crore in the AprilJune quarter of 2013-14 fiscal. Net sales during Q1, 2014-15 were at Rs 921.07 crore, an increase of 16.61 percent as compared to Rs 789.81 crore in the year-ago period, the company said. Overall expenses during Q1 stood at Rs 823.17 crore, up 16.63 percent as against Rs 705.75 crore in the same quarter last year.

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Q1 RESULTS ANALYSIS

GEOJIT BNP PARIBAS TURNS BACK INTO A BULL

eojit BNP Paribas Financial Services has reported a jump of over 45 percent in consolidated revenues at Rs 86 crore for the first quarter ended June 30. The company's consolidated revenues went up from Rs 59 crore to touch Rs 86 crore during the period under review. Profit Before Tax (PBT) went up by 117 percent to Rs 36 crore from Rs 17 crore from the year-ago period while Profit After Tax (PAT) during the period under review went up by 43 percent from Rs 16 crore to Rs 24 crore. On Standalone basis, revenues went up by 70 percent from Rs 45 crore to Rs 77 crore and PAT went up by 241 percent from Rs 5.9 crore to Rs 20 crore com-

pared to the first quarter of last year. For the first time ever, the company's Assets Under Management and Custody has gone up to Rs 19,500 crore as on 30 June 2014, the release said. Commenting on the results, Geojit BNP

Paribas Managing Director C J George said the improvement in the sentiment and volumes in the capital markets, coupled with the growth in software income of one of the subsidiaries, helped the company achieve better results.

INDUSIND BANK PERFORMS FINELY, ASSET QUALITY & NIM HAVE ROOM FOR IMPROVEMENT

rivate sector lender IndusInd Bank saw net profit in first quarter of current financial year 2014-15 rising 25.7 percent yearon-year to Rs 421 crore supported by stable asset quality and higher other income. Net interest income increased by 17.7 percent on yearly basis to Rs 800 crore and other income (noninterest income) 22.5 percent to Rs 576.4 crore in the quarter gone by. However, net interest margin declined marginally to 3.66 percent from 3.75 percent on quarter-on-quarter basis. Loan book of the bank grew at 34 percent and credit growth was at 24 percent, said Romesh Sobti, MD and CEO. Total advances during the quarter climbed 23.7 percent to Rs 58,664 crore compared to last year and CASA ratio stood at 33 percent versus 30 percent. On the asset quality front, gross non-performing assets (NPA) were steady at 1.11 percent in April88

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June quarter as against 1.12 percent in a year-ago period and 1.06 percent in previous quarter while net NPA was unchanged at 0.33 percent sequentially, which was at 0.21 percent in corresponding quarter of last fiscal. Gross NPA increased 5.4 percent sequentially (up 29.5 percent year-on-

year) to Rs 654.4 crore and net NPA rose 6 percent Q-o-Q (up 93 percent Y-o-Y) to Rs 195.6 crore during AprilJune quarter. Provisions declined to Rs 110.4 crore in June quarter from Rs 120.5 crore in previous quarter and Rs 132 crore in same quarter last year.

ING VYSYA BANK ROCKED BY WORSENING ASSET QUALITY

RELIANCE POWER BOTTOMLINE FLAT, TAKES OVER JAYPEE HYDRO PROJECTS

rivate sector lender ING Vysya Bankâ&#x20AC;&#x2122;s first quarter net profit slipped 18 percent to Rs 143.4 crore versus Rs 175.1 crore in same quarter last year on account of higher provisions. Net interest income (NII) rose by 9 percent to Rs 463 crore from Rs 425 crore in corresponding quarter of last fiscal. Provisions increased by 48 percent on yearly basis (up 148.3 percent Q-o-Q) to Rs 101 crore from Rs 68.1 crore. Asset quality weakened on sequential basis with the gross nonperforming assets (NPAs) rising to 2.39 percent from 1.77 percent and net NPAs jumping to 0.87 percent from 0.28 percent. In absolute terms, gross NPAs rose by 44 percent to Rs 928.7 crore and net NPAs were up by 224 percent to Rs 331.6 crore compared to previous quarter. The bankâ&#x20AC;&#x2122;s net interest margin was 3.37 percent in the quarter ended June 2014.

nil Dhirubhai Ambani Group Company Reliance Power has reported a growth of 1.8 percent in its first quarter consolidated net profit at Rs 244.3 crore as against Rs 240 crore in the year-ago period, impacted by higher finance cost and lower other income. Consolidated net sales grew 56 percent on yearly basis to Rs 1,753 crore during April-June quarter. Reliance Power said the company has total operating capacity at 4525 MW as of June 2014, adding four out of five units are fully operational at Sasan Power Project. "3300 MW (5X660 MW) capacity has been installed at the Sasan Ultra Mega Power Project located in Madhya Pradesh. After making four out of five units fully operational, the construction work is in full swing for the remaining one unit and is on track to be commissioned in the current year," it added. Consolidated operating profit jumped 41.4 percent yearon-year to Rs 635 crore but margin declined 380 basis points to 36.2 percent in the quarter gone by. Other income declined to Rs 57.4 crore from Rs 83.4 crore while finance cost jumped by about Rs 100 crore to Rs 257.68 crore from Rs 156.97 crore during the same period. SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

CEAT'S DREAM RUN GETS A PUNCTURE

eat's Q1FY15 consolidated net profit was down by 21 percent at Rs 51.6 crore versus Rs 65.3 crore in the year-ago period on weak operational performance. Consolidated net sales were up by 10 percent at Rs 1,453 crore against Rs 1,317 crore, Y-o-Y. Operating profit or EBITDA was down by 14 percent to Rs 128 crore in April-June quarter compared to Rs 149 crore in same quarter last year and margin fell 250 basis points to 8.8 percent from 11.3 percent due to increase in employee cost, higher advertising spends and adverse product mix. Employee cost jumped 22 percent on yearly basis to Rs 86.4 crore on account of long term settlement at Nashik plant while other expenditure was higher by 17 percent Y-o-Y to Rs 287 crore in the quarter gone by. During the same period, interest cost fell to Rs 39.36 crore from Rs 41.31 crore and raw material cost went down 1.5 percent to Rs 857 crore due to fall in rubber prices that declined to Rs 138 per kg from Rs 145 per kg year-onyear.

EXIDE ON HIGH CHARGE, TRIPS ONLY IN MARGINS

attery manufacturer Exide Industries performed well on most parameters with the first quarter net profit rising by 16 percent on yearly basis to Rs 185 crore. Revenue surged 17.5 percent to Rs 1,912.4 crore in June quarter compared to Rs 1,627.5 crore in corresponding quarter of last fiscal. Operating profit grew 11 percent year-on-year to Rs 291 crore while margin slipped 90 basis points to 15.2 percent year-on-year.

INDIAN BANKâ&#x20AC;&#x2122;S NII AND PROFITS DOWN, DESPITE DECLINING PROVISIONS

ublic sector lender Indian Bank saw its first quarter net profit falling 34.8 percent to Rs 207.1 crore on account of lower other income. Profit in the year-ago period was Rs 317.4 crore. Net interest income declined marginally to Rs 1,072 crore from Rs 1,098 crore during the same period but other income slipped 59.2 percent on yearly basis to Rs 215.2 crore in the quarter ended June 2014. Provisions declined at Rs 325.6 crore in first quarter of current financial year compared to Rs 593.9 crore in previous quarter and Rs 368.1 crore in corresponding quarter of last fiscal that helped the bottomline. Provision coverage ratio stood at 57.56 percent as on June 30, said the bank. Asset quality worsened with the gross non-performing assets (NPA) rising 34 basis points sequentially (up 60 bps on yearly basis) to 4.01 percent and net NPA jumping 22 bps quarter-on-quarter (up 17 bps year-on-year) to 2.48 percent in the quarter gone by. Capital adequacy ratio (as per Basel III norms) improved to 13.28 percent from 12.64 percent on sequential basis. 90

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IDEA FINALLY STAKES CLAIM TO BE AN INVESTMENT IDEA

dea Cellular, one of the largest telecom operators in India, performed strongly on every front with the consolidated net profit rising 23.4 percent sequentially to Rs 728 crore in April-June quarter aided by strong operational performance and topline despite higher tax rate. Consolidated revenue grew 7.34 percent to Rs 7,561 crore in the first quarter compared to Rs 7,043.8 crore in same quarter last year. "The strong consumer demand & brand affinity, expanding network footprint & spectrum portfolio and steady cash flows from operations reaffirms Idea's ability to deliver consistent, competitive, responsible and profitable growth," said the company. Operating performance was very strong with the operating profit growing 12.6 percent quarter-on-quarter to Rs 2,511 crore due to scale benefit, better cost management and robust voice & data growth. Operating profit margin expanded 150 basis points to 33.2 percent in June quarter against 31.7 percent in previous quarter. Tax expenses shot up 53 percent Q-o-Q to Rs 393.66 crore in the quarter gone by. During the quarter, the company said it carried 165.2 billion minutes on its network, registering 12.2 percent Y-o-Y growth (5.16 percent Q-o-Q growth) and 32.5 billion megabytes of mobile data on its 2G and 3G platform, year-on-year growth of 136 percent, reaffirming strong consumer demand. The higher voice rate realisation and jump in data contribution to 11.5 percent of sevice revenue helped improve average realisation per minute (ARPM) by 1.5 paise to 45.1 paise in Q1FY15 from 43.6 paise in Q4FY15. Average revenue per user (ARPU) improved to Rs 181 in June quarter as against Rs 173 in March quarter and minutes of usage increased to 401 minutes from 397 minutes on sequential basis.

GRUH FINANCE MAINTAINS CONSISTENCY, BUT COMPETITION SET TO INCREASE IN AFFORDABLE SEGMENT GRUH Finance has reported a standalone sales turnover of Rs 241.61 crore and a net profit of Rs 41.91 crore for the quarter ended Jun '14. Other income for the quarter was Rs 0.01 crore. For the quarter ended Jun 2013 the standalone sales turnover was Rs 182.60 crore and net profit was Rs 33.77 crore, and other income Rs 0.59 crore.

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Q1 RESULTS ANALYSIS

OBEROI REALTY DELIVERS A SHOCKINGLY BAD QUARTER, NOW PEGS HOPE ON REALTY SECTOR REFORMS

beroi Realty said its net profit declined 36.8 percent to Rs 64.33 crore for the quarter ended June 30, 2014. This is against a net profit of Rs 101.81 crore in the same quarter last fiscal, Oberoi Realty said. The company's consolidated revenue dipped 19.6 percent to Rs 175.38 crore in the said quarter from Rs 218.39 crore in the year-ago period. Real estate segment contributed Rs 148.21 crore, while hospitality accounted for Rs 27.17 crore of the total revenue in the quarter. On sequential basis, net profit dipped 16.4 percent (from Rs 77.03 crore in Q4 FY'14), while revenue fell 20.4 percent from Rs 220.57 crore in JanuaryMarch 2014. "With the uncertainty of the elections being over, we are seeing a distinct change in sentiments. The new government appears determined

to tackle the macroeconomic issues and has begun in right earnest with a focus on infrastructure," Oberoi Realty Chairman and Managing Director Vikas Oberoi said. The recent policy changes on FDI in real estate and the budget provisions for REITs also indicate a forward thinking approach on the sector, he added. "The increase in volumes indicates that the customer is again confident of the 'India story'. Our pipeline of projects coupled with the positive market conditions, creates an ideal environment for the company to deliver on its potential," he said. The aggregate area booked during the quarter was 67,730 sq ft as against 47,675 sq ft booked in Q4 FY14, a growth of about 42 percent. The order book stood at Rs 1,535 crore in the quarter under review as against Rs 1,509 crore at the end of Q4 FY'14.

INDIAN OVERSEAS BANK’S PROFIT DOUBLES, NPA BATTLE CONTINUES

ublic sector lender Indian Overseas Bank has reported over two-fold jump in net profit for the first quarter ended June 30, 2014 at Rs 271.72 crore. The Chennai based bank had reported net profit of Rs 125.79 crore in the corresponding period of the previous year. Total income for the first quarter ended June 30, 2014, grew to Rs 6,284.69 crore from Rs 6,187.15 crore registered during the same period of the previous year. Gross NPA of the bank as on June 30, 2014 stood at 5.84 percent, as against 4.45 percent registered during the same period of the previous year. Net NPA stood at 3.85 percent in the reported quarter as against 2.81 percent registered during the same period of the previous year. Total business for the AprilJune 2014 quarter grew to Rs 3,99,188 crore, up by 9.94 percent, 92

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from Rs 3,63,087 crore registered during the same period of the previous year. The bank said total deposits for the quarter grew to Rs 2,21,879 crore from Rs 1,96,213 crore in the year-ago period. Gross advances increased to Rs 1,77,309 crore, as on June 30, 2014 from Rs 1,66,874 crore, registered during the same period of the previous year. CASA Ratio stood at 24.50 percent as on June 30, 2014 as against 25.61 percent as on June 30, 2013, the bank said.

KALYANI STEELS PUTS UP A SHOW OF STRENGTH Kalyani Steels’ April-June quarter (Q1FY15) net profit rose by 53 percent at Rs 15.3 crore as against Rs 10 crore in same period last fiscal. The company’s net sales were up 27.76 percent to Rs 312 crore from Rs 244.2 crore, Y-o-Y. Kalyani Steels is a part of the $3 billion Kalyani Group with its flagship as Bharat Forge, and led by BN Kalyani as Group Chairman.

BANK OF BARODA PERFORMS WELL, DISPLAYS PRUDENT STEPS IN NPA BATTLE

ublic sector lender Bank of Baroda saw its first quarter net profit rising 16.6 percent at Rs 1,362 crore compared to Rs 1,167.9 crore in same quarter last year on account of lower provisions but impacted by lower other income and higher tax expenses. Net interest income grew 15.2 percent, to Rs 3,328.3 crore during the same period while other income (non-interest income) declined 16.7 percent on yearly basis to Rs 1,024.54 crore in the quarter gone by. SS Mundra, CMD said domestic net interest margin of the bank was at 2.94 percent in first quarter, improved compared to 2.84 percent in March quarter. Asset quality deteriorated with the gross non-performing assets (gross NPA) rising sequentially (up 12 basis points year-on-year) to 3.11 percent in June quarter from 2.94 percent in March quarter and net NPA increasing

quarter-on-quarter (down 11 bps Y-oY) to 1.58 percent from 1.52 percent during the same period. "Fresh slippages for the June quarter stood at Rs 1,881 crore, increased from Rs 1,294 crore in March quarter while restructured assets were Rs 986 crore as against Rs 1,157 crore on sequential basis," said SS Mundra. The bank has cash recovery of Rs 564 crore during June quarter while write-offs were Rs 493 crore and upgrades at Rs 741 crore for the quarter. During the quarter, Bank of Baroda sold financial assets with net book value of Rs 185.54 crore to asset reconstruction companies on cash and security receipt basis. Provisions fell significantly to Rs 527 crore in first quarter of current financial year compared to Rs 1,153 crore in previous quarter and Rs 1,018 crore in corresponding quarter of last fiscal. Provision coverage ratio of the bank was 66.68 percent as on June

HDFC BANK'S DREAM RUN ENDING? WILL IT MERGE WITH PARENT HDFC?

DFC Bank, India's second largest private sector lender, reported a profit after tax of Rs 2,233 crore in April-June quarter, a growth of 21 percent compared to Rs 1,844 crore in same quarter last year. Profitability of the bank was lower than expectations due to higher provisioning and lower other income while NII was in line. Net interest income grew 17 percent to Rs 5,171 crore in first quarter of current financial year from Rs 4,419 crore in corresponding quarter of last fiscal. Other income fell to Rs 1,850.6 crore from Rs 1,925.6 crore during the same period. Net interest margin was unchanged at 4.4 percent on sequential basis but declined compared to 4.6 percent in the year-ago period. On the asset quality front, gross non-performing assets (NPA) increased by 10 basis points to 1.1 percent on sequential as well as yearly basis while net NPA was unchanged at 0.3 percent Q-o-Q and Y-o-Y. In abolute term,

gross NPA jumped 12.3 percent Q-o-Q (up 23.4 percent Y-o-Y) to Rs 3,356 crore and net NPA shot up 22.9 percent sequentially (up 46.2 percent year-on-year) to Rs 1,007.4 crore in the quarter gone by. HDFC Bank says its provisions jumped 68.8 percent

2014. The bank said it has made provision at 20 percent on the secured sub-standard advance as against the regulatory requirement of 15 percent. "The bank has made additional ad-hoc provision of Rs 340.56 crore for the quarter in certain non-performing domestic advance accounts," it added.

(down 8.4 percent on yearly basis) to Rs 482.8 crore compared to Rs 286 crore in previous quarter. Tax expenses increased 20.6 percent year-on-year to Rs 1,128 crore in the quarter gone by. The bank's restructured loans were at 0.2 percent of gross advances as on June 30, similar to Q1FY14. Cost to income ratio of the bank was at 45.3 percent in Q1 as against 47.9 percent in corresponding quarter of last fiscal. Advances increased by 20.7 percent year-on-year to Rs 3.12 lakh crore while total deposits grew 22.7 percent to Rs 3.72 lakh crore in the quarter ended June 2014. "Total capital adequacy ratio as per Basel III guidelines was at 15.1 percent as of June 2014 (15.5 percent in Q1FY14) as against a regulatory requirement of 9 percent while tier-I CAR was at 11.1 percent as against 10.5 percent during the same period," said the bank. Though the bank denies it, rumours are floating that it will opt for a merger with parent HDFC to tap the excess capital there, as well as to make good use of the recent regulatory changes by RBI favouring banks in the housing finance space. SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

SAIL Shows What Public Sector Can Do, And Also What It is Not Doing

wo companies from the same sector. One backed by the whole might of this great nation. The other backed by the shrewdness of a business family. Both makes steel. But there ends the differences. Steel Authority of India Ltd (SAIL) has an equity base of Rs. 4131 crore. Tata Steel is ‘blessed’ with only 993 crore. Which is only less than a fourth of SAIL’s. How can it be otherwise? SAIL is backed by the entire nation, the other is a private business. Now, backing is not just about high expectations in nation building, but about enjoying preferential orders from all kind of government and PSU enterprises. So, the quadruple times equity was given to SAIL or its forerunners, starting in 1954 and ever since then, to create something at least double the size of Tata Steel. Because, Tata Steel was 47 years old when SAIL or its forerunner Hindustan Steel Ltd set shop in 1954. Has SAIL delivered on its promises? It sure has, on many fronts. For instance, it is the second largest steel company in domestic sales, behind JSW Steel. It has overtaken Tata Steel in domestic sales, even if it is not by a big margin. It employs over 1 lakh Indians. It is one of the fastest growing PSUs. Surely, SAIL stands testimony to what India’s public sector can do. But sadly, SAIL is also sad testimony to what the country’s public sector is not doing. SAIL’s efficiency as a business is exposed when we realize that its Return on Equity is a poor 6.32%, against Tata Steel’s reasonable RoE of 10.72%. What that reveals is that SAIL has created less wealth for its main owner, Government of India or this nation to be more precise, than what Tata Steel has delivered for its main owner, which is a mere business family. Both the stocks have a face value of Rs. 10, and one now trades at Rs. 87 and the other trades at Rs. 563. No marks for guessing which among them is the SAIL stock. But where

SAIL has really lost out is on global expansion. In fiscal 2014, Tata Steel clocked more than thrice the global annual sales of SAIL, on a consolidated basis thanks to their 2008 takeover of UK’s Corus. SAIL could have done such deals easily. Thanks to such deals, Tata Steel today has manufacturing operations in 26 countries around the world, thereby flying India’s flag high in all those nations. Was Tata’s success only about a 47 year old head start? It can’t be, as JSW Steel has proved recently. Starting out only in 1982, a good 28 years after SAIL (Hindustan Steel), it has outpaced SAIL as well as Tata Steel in domestic sales. Now, the government is mulling a 5% stake sale in SAIL. Maybe that is not enough, is what the global success of Tata Steel and the domestic success of JSW shows. Is it time for more professional management of this critical asset of the nation?

SAIL REPORTS A SMOOTH SAIL IN Q1 State-controlled Steel Authority of India (SAIL) has reported a 17.5 percent growth in net profit at Rs 530 crore in the quarter ended June 2014 compared to Rs 450.9 crore in the year-ago period aided by higher operating performance but impacted by lower other income and higher finance cost. Total income from operations grew by 10.8 percent to Rs 11,341 crore in the quarter ended June 2014 from Rs 10,233.8 crore in the year-ago period driven by Rourkela, Bokaro and Salem steel plants. The company said Rourkela and Burnpur plants will aid volume jump in FY15. Operating profit (EBITDA) shot up 33.7 percent year-on-year to Rs 1,130 crore and margin expanded by 170 basis points to 10 percent during the quarter. During the same period, other income declined 32.3 percent on yearly basis to Rs 89 crore and interest earned slipped 17 percent to Rs 106.75 crore. Finance cost jumped to Rs 305 crore in Q1FY15 from Rs 192 crore in same quarter last year. Power and fuel cost increased to Rs 408 crore from Rs 393 crore and other expenses spiked to Rs 2,048 crore from Rs 1,884.6 crore year-on-year while cost of raw materials declined to Rs 4,427 crore from Rs 4,557 crore.

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Dena Bankâ&#x20AC;&#x2122;s Eyes are on the Longer View

umbai headquartered PSU lender, Dena Bank, has almost achieved the unimaginable in the market, during the yearto-date. During FYâ&#x20AC;&#x2122;14, the relatively small-sized lender went in for a massive equity dilution of over 53%, for raising Rs. 700 crore from its promoter, Government of India. Based also on that, it could expand its top-line, but only by around 8%. The bottomline performance was not up to the mark, when it fell by around 32%. In normal circumstances, such a performance after such a dilution would have been enough to send the stock to a tailspin. But what happened was just the reverse, a miracle. Dena Bank stock has more than doubled in year-to-date, soaring by nearly 126% during the last 9 months. Now, again, Dena Bank is gearing up for the next equity raise from GoI, this time amounting to Rs. 1200 crore, which may result in even more dilution according to the instrument used - QIP, Rights, or Tier II bonds. Clearly, the eyes of CMD Ashwani Kumar, is not on the short-term, but on the very long term. There is no denying the fact that Dena needs capital to move up to the next orbit. The stock has already corrected from recent highs by about 22%, due to the possible dilution.

SOBHA DEVELOPERS PROFITS UP,NEW LAUNCHES TO HELP GOING FORWARD Realty major Sobha Developers reported a 14 per cent increase in its consolidated net profit at Rs 57 crore for the quarter ended June on higher sales. Its net profit stood at Rs 50.1 crore in the year-ago period. Total income rose by 26 per cent to Rs 582.6 crore in the first quarter of this fiscal as against Rs 463 crore in the corresponding period of the previous year. "The macro-economic factors that slowed our economy last year continued to prevail even during the first few months of this year. However, post the general elections and the formation of a single-party majority government at the centre after two decades, the market sentiments have become buoyant," Sobha's Vice Chairman and Managing Director J C Sharma said. With the thought-out policies and reforms by the new government, he expected that the economy will show signs of improvement in the coming few quarters. During Q1 of FY15, Bangalore-based firm achieved new sales of 7.54 lakh sq ft valued at Rs 482.2 crore with an average realisation of Rs 6,388 per sq ft. "Our current debt-equity ratio is 0.65 and our net debt is Rs 15.31 billion. The increase in the debt is primarily on account of pursuing investment opportunities in Cochin and Pune. By the end of this fiscal, we hope to reduce our debt-equity ratio so as to contain it around 0.6," Sharma said. "We have a healthy pipeline of about 10 million sq ft of new project launches planned in the next few quarters in our existing markets. In the month of August we have launched 2 new projects," he added.

DENA BANK BOTTOMLINE FALLS DESPITE FLAT PROVISIONS PSU lender Dena Bank's first quarter (April-June) net profit fell 57 percent to Rs 81.5 crore on lower other income and slow growth in net interest income but supported by lower tax cost and flat provisions. The profit in the year-ago period was Rs 189.2 crore. Net interest income increased marginally to Rs 612 crore in the quarter ended June 2014 from Rs 604.7 crore in corresponding quarter of last fiscal while other income (non-interest income) dropped 60.5 percent to Rs 144.42 crore from Rs 365.51 crore during the same period. Asset quality of the bank deteriorated with the gross non-performing assets (NPA) rising 151 basis points year-on-year (up 88 bps quarter-on-quarter) to 4.21 percent and net NPA increasing by 120 basis points on yearly basis (up 59 bps sequentially) to 2.94 percent in the quarter gone by. During the quarter, provisions were unchanged at Rs 228.1 crore on year-on-year basis but the same declined 60 percent compared to Rs 570.3 crore in previous quarter with the provision coverage ratio at 53.96 percent as on June 2014. Operating expenses of the bank rose by 15.3 percent to Rs 442.63 crore from Rs 384 crore while tax expenses dropped significantly to Rs 4.17 crore in April-June quarter from Rs 168.9 crore in the year-ago period. SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

ESSAR PORTS' PROFITS DIP, BUT EXPANSION PLANS INTACT

ssar Ports today reported a 9 percent dip in net profit to Rs 92.15 crore for the first quarter ended June 30, due to higher expenses and finance costs. The Ruias-led ports firm had reported a net profit of Rs 101.44 crore in the first quarter of 2013-14. "Revenues for the quarter increased by 4 percent to Rs 431.6 crore from Rs 415.5 crore during the previous quarter and increased by 5 percent from Rs 410.5 crore during the corresponding quarter of the previous year," Essar Ports said. The company also said it "recorded its highest quarterly operating revenues of Rs 431.6 crore (excluding export obligation revenues booked in previous quarters)". Total expenses during the quarter, however, rose to Rs 159.60 crore as against Rs 144.23 crore in the corresponding quarter in FY14. The finance costs rose to Rs 161.38 crore in the quarter under review against Rs 146.81 crore in the year-ago period. Essar Ports Managing Director Rajiv Agarwal

said, "Our expansion plans are on the track with operations at the Vizag terminal expected to start next quarter. The traffic at our Paradip Dry Bulk Terminal is also slated to increase next quarter. We remain focused towards increasing our third-party cargo share and diversifying our customer base." Essar Ports is one of the largest private sector ports in the country with a capacity to handle cargo to the tune of 104 million tonnes per annum (MTPA). The capacity will be expanded to 194 MTPA over the next few years. It has three operational port terminals at Hazira, Vadinar and Paradip. The company is also setting up a dry bulk terminal at Salaya with a capacity of 20 MTPA. Additionally, it plans to expand its Hazira port capacity by 20 MTPA taking it to 50 MTPA. The company is also developing three iron ore berths at Visakhapatnam port with a capacity of 32 MTPA. Besides, it has plans to develop a coal terminal at Paradip of 18 MTPA capacity.

SBBJ PERFORMS WELL ON MOST FRONTS IN Q1

ublic sector lender State Bank of Bikaner and Jaipur (SBBJ) reported a 14.5 percent growth in standalone net profit at Rs 214.6 crore in the quarter ended June 2014 on account of lower operating expenses but the higher provisions and lower other income capped profitability. Profit in same quarter last year was Rs 187.5 crore. Net interest income grew 13.5 percent to Rs 751.68 crore in April-June quarter from Rs 662.19 crore in corresponding quarter of last fiscal. Operating expenses declined to Rs 415.11 crore from Rs 450.76 crore while other income slipped to Rs 182.73 crore from Rs 227.80 crore during the same period. Provisions stood at Rs 198.64 crore in June quarter, down compared to Rs 242.44 crore in previous quarter but up against Rs 162.23 crore in the year-ago period. Asset quality improved significantly during the quarter with the gross non-performing assets (NPA) falling to 3.60 percent from 4.18 percent Q-o-Q and 3.88 percent Y-oY while net NPA slipped to 2.14 percent from 2.76 percent Q-o-Q and 2.27 percent Y-o-Y.

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CAIRN'S PROFIT DIVES ON DEPRECIATION, CORPORATE GOVERNANCE WAKES UP EVEN SLEEPING GIANT LIC

t is not routine for LIC to object to corporate governance issues at companies it invests in. But Cairn has attracted the ire of LIC for extending a massive Rs. 7200 crore loan at cheap rates to parent company, the Anil Agarwal-led Vedanta Resources. Cairn India reported a massive fall of 65 percent in consolidated net profit at Rs 1,092.9 crore in April-June quarter compared to Rs 3,127.23 crore in same quarter last fiscal due to change in method of depreciation from straight line method to unit of production and weak operational performance. The sequential fall in bottomline was 64 percent. Exceptional cost on account of change in depreciation method was Rs 1,627.4 crore during the quarter. Total income from operations grew 10.3 percent (down 11.2 percent quarter-onquarter) to Rs 4,482.8 crore from Rs

CITY UNION BANK PERFORMS REASONABLY City Union Bank's April-June quarter (Q1FY15) net profit was up 10 percent at Rs 99.5 crore against Rs 90.3 crore in the same quarter last fiscal. NII was down marginally at Rs 186.7 crore versus Rs 187.3 crore, Y-o-Y. The company's gross NPA rose by 100 bps at 1.91 percent versus 1.81 percent and net NPA was up 30 bps at 1.28 percent versus 1.23 percent, Q-o-Q. The provisions increased by 44 percent at Rs 42.7 crore versus Rs 29.6 crore, Q-o-Q and shown a rise of 108 percent against Rs 20.5 crore, Y-o-Y. The capital adequacy ratio (Basel III) stood at 14.51 percent versus 15.01 percent, Q-o-Q.

4,062.93 crore on year-on-year basis, on account of higher volumes and realisations. Revenue was after the profit sharing with the Government of India and royalty expenses in the Rajasthan block. Royalty for Rajasthan block was Rs 1,069 crore during the quarter. Cairn India has established 1.2 billion barrels of oil equivalent (boe) of hydrocarbons in-place since resumption of exploration in Rajasthan. An additional around 0.6 billion boe has been discovered and is either currently undergoing testing or is awaiting testing, it said. In FY15/16, the company anticipates establishing an additional 1.2 billion boe hydrocarbons in-place achieving target volumes significantly ahead of plan. It believes these new discoveries and prospect volumes will take the total Rajasthan discovered hydrocarbons in-place to over 7 billion boe. Sudhir Mathur,

interim CEO of the company said, "We are confident of not only achieving the stated exploration target of 3 billion barrels of hydrocarbons in-place, ahead of schedule, but also of adding another 3 billion barrel to our un-risked prospect inventory."

EIH'S PROFIT DIPS DUE TO SEASONAL NATURE OF BUSINESS Hospitality major EIH Ltd, which runs hotels and resorts under Oberoi and Trident brands, reported a 39.24 percent dip in its standalone net profit to Rs 6.41 crore for the quarter ended June 30, 2014. The company had registered a net profit of Rs 10.55 crore for the corresponding period of the previous fiscal. Standalone total income from operations of the company stood at Rs 284.12 crore for the quarter under consideration as against Rs 271.16 crore for the same period a year ago. The results for the first quarter are not indicative of a full years working due to seasonal nature of the Indian hotel industry, EIH said. Founded in 1934, Oberoi Group operates 30 hotels, a Nile Cruiser and a Motor Vessel in the backwaters of Kerala. The

Group has presence in six countries under the luxury 'Oberoi' and five-star 'Trident' brand. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters. SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

GLENMARK PHARMA REPORTS QUITE A HEALTHY QUARTER

lenmark Pharmaceuticals reported 43.7 per cent jump in consolidated net profit at Rs 184.8 crore for the first quarter ended June 30, 2014. The company had posted net profit of Rs 128.6 crore in the same quarter of the previous year. Consolidated net sales of the company rose by 19.38 per cent to Rs 1,477.8 crore during the quarter under review, as against Rs 1,237.8 crore in the same period of previous fiscal, Glenmark Pharma said. "We have delivered strong results backed by good performances by our India, Rest of the World, Europe and LATAM (Latin America) businesses. We outperformed in the Indian Pharmaceutical market with a growth of over 20 per cent," company's Chairman and MD Glenn Saldanha said. "We have been making steady progress in our innovation pipeline and now have three firstin-class monoclonal antibodies in clinical development," he added. The company's India business grew by 20.87 per cent to Rs 397.1 crore while US business grew by 9.33 per cent to Rs 488.6 crore. Its rest of the world (ROW) business grew by 20.67 per cent to Rs 211.3 crore.

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INDIABULLS HOUSING FINANCE GROWS BOTTOMLINE, SAMEER GEHLAUT CONSOLIDATES GRIP

he split in Indiabulls Group has seen Chairman and Cofounder Sameer Gehlaut getting Indiabulls Housing Finance, while the other two promoters Rajiv Rattan and Saurabh Mittal opting out of this flagship of the Group. The finance company has come a long way from its unsecured lending days, and is today focused entirely on the housing finance sector. It has reported over 20 per cent surge in its June quarter net profit at Rs 424 crore. The Mumbai-based company had posted a post tax net profit of Rs 352 crore in the year ago period. Its total revenues were up 19.3 per cent to Rs 1,602.8 crore, while the net interest income grew 17.1 per cent to Rs 701 crore. The company's deputy managing director Ashwini Hooda said the provisions were constant at Rs 20 crore, but the company set aside a floating provision of Rs 45 crore as a counter cyclical buffer for the quarter. "During the quarter, we had a one time benefit on account from tax write back and as per our policy, we put such gains into the counter cyclical buffer," he said. He emphasised that the excess provision, which pushed up its provision coverage ratio to 157.8 per cent, has not been made looking at any stress building up in the near future. The gross non performing assets ratio moved up marginally to 0.84 per cent at the end of the reporting quarter as against the 0.78 per cent in the year ago. Hooda said the net interest margin was stable at 3.50 per cent and the company would like to maintain it at the same level going forward. The company will also maintain the growth of credit at 20-25 per cent levels going ahead, he said, adding that residential demand is doing particularly well. On the wholesale demand front, he said prepayments by two accounts who got funded by private equity players has resulted in some slackness in the book but exuded confidence that it will be overcome.

TVS MOTOR REVS UP ITS GROWTH ENGINE

VS Motor Company, India's third largest two-wheeler maker by volumes saw first quarter net profit rising 39.3 percent at Rs 72.3 crore compared to Rs 51.9 crore in the year-ago period impacted by higher expenses. Revenue grew 31 percent on yearly basis to Rs 2,305.4 crore during April-June quarter on account of strong sales volumes. Total two-wheeler sales of the company grew by 22 percent to 5.59 lakh units in the quarter ended June 2014, increasing from 4.60 lakh units in the corresponding quarter of the previous year. "Motorcycle sales grew by 23 percent Y-o-Y to 2.28 lakh units in the quarter ended June 2014 and scooter sales rose 55 percent to 1.52 lakh units while two and three wheeler exports registered a growth of 47 percent with sales increased to 0.97 lakh units," said the company. It launched TVS StaR City+, a 110 cc, feature rich motorcycle, which offers a unique combination of performance, fuel economy and style, it added. While addressing press conference, TVS said it got good response for its products - Apache, Jupiter and Wego. "2014-15 will be a breakthrough year for company," it added. It expects to launch new Scooty in August and one new motorcycle each

in Q3 and Q4. Total expenses of the company jumped 30.4 percent to Rs 2,207.81 crore from Rs 1,692.73 crore on account of higher raw material cost and tax cost rose to Rs 28.2 crore from Rs 17.18 crore year-on-year. Operating profit (EBITDA) shot up 33 percent year-on-year to Rs 131 crore and margin expanded by 10 basis points to 5.7 percent in the quarter ended June 2014, which both were far lower than analysts' expectations of Rs 165 crore and 7 percent, respectively.

GIC HOUSING FINANCEâ&#x20AC;&#x2122;S Q1 REASONABLE, STOCK A RELATIVE UNDERPERFORMER

DHFL PERFORMS REASONABLY ON YOY BASIS, MARGINALLY ON QOQ

IC Housing Finance has reported a standalone sales turnover of Rs 168.64 crore and a net profit of Rs 25.36 crore for the quarter ended Jun '14. For the quarter ended Jun 2013 the standalone sales turnover was Rs 147.86 crore and net profit was Rs 24.30 crore. GIC Housing Finance is promoted by PSU general insurance companies. Its stock has underperformed compared with housing finance peers like Can Fin Homes.

ewan Housing Finance Corporation's April-June quarter (Q1FY15) net profit rose by 22.5 percent at Rs 147.2 crore against Rs 120 crore in the same quarter last fiscal. Total Income jumped from Rs 1,107.4 crore to Rs 1,426.6 crore, Y-o-Y, a growth of 29 percent. On the sequential basis, the company's net profit was up by 4 percent at Rs 147.2 crore and total income was up marginally at Rs 1,426.6 crore. The firm is related to HDIL, and has Rakesh Jhunjhunwala as an investor.

SEASONAL MAGAZINE

Q1 RESULTS ANALYSIS

MAHINDRA FINANCEâ&#x20AC;&#x2122;S ASSET QUALITY PROBLEMS CONTINUE

ahindra and Mahindra Financial Services Limited (MMFSL) has reported a 19 percent decline in its first quarter net profit to Rs 154.8 crore against Rs 191.2 crore in the yearago period due to higher finance costs and increased write-offs on its loans during the quarter. Net interest income (NII) rose 10 percent to Rs 680.2 crore against Rs 616.3 crore on a year-on-year basis. Total income grew 17 percent to Rs 1,384 crore, while finance costs during the quarter increased 25 percent to Rs 595 crore. Provisions towards bad loans and write-offs put together were at Rs 225 crore, up 79.7 percent, to Rs 125.2 crore YoY. On a sequential basis, it jumped 201 percent from Rs 74.75 crore. Addressing the media, Ramesh Iyer, MD, Mahindra & Mahindra Financial Services, said the first quarter numbers got impacted by lower collection efficiency during April and May, on account of reduced number of effective working days. Even the expectations of deficient monsoon had a negative impact. He, however, said that June has witnessed improvement over April and May.

PNB SHOWS PROFIT GROWTH FOR THE FIRST TIME IN LAST 4 QUARTERS

unjab National Bank (PNB) saw net profit jumping 10.2 percent on yearly basis to Rs 1,405 crore on account of fall in provisions but decline in other income limited the profitability. The bank reported growth in profit for the first time in last four quarters. Net interest income grew 12.1 percent year-on-year to Rs 4,380 crore in the quarter ended June 2014 while other income dropped 7.9 percent to Rs 1,236.44 crore from Rs 1,342.05 crore during the same period on account of lower trading profit that dropped to Rs 149 crore from Rs 280 crore Y-o-Y. Net interest margin improved to 3.42 percent from 3.2 percent on sequential basis, said KR Kamath, chairman and managing director. Asset quality of the bank weakened during the quarter with the gross nonperforming assets (NPA) increasing 23 basis points sequentially (up 64 bps Y-o-Y) to 5.48 percent and net NPA rising 17 bps (up 4 bps Y-o-Y) to 3.02 percent in first quarter of current financial year 201415. Gauri Shankar, executive director said fresh slippages during the quarter were Rs 2,958 crore but he expects asset quality to improve going ahead as the pipeline of restructured assets has gone down. Provisions dropped 56.6 percent at Rs 927.6 crore in April-June quarter compared to Rs 2,138.7 crore in previous quarter and year-on-year increase fall was 13 percent with the provisioning coverage ratio of 60 percent at the end of June 2014. Total deposits grew 12 percent at Rs 4,44,920 crore and advances jumped nearly 14 percent at Rs 3,47,485 crore compared to the year-ago period. 100 SEASONAL MAGAZINE

WIPRO IMPRESSES ON PROFIT, DOLLAR REVENUE AND MARGINS DISAPPOINT

T services major Wipro reported a 29.5 per cent growth in its consolidated net profit at Rs 2,103.2 crore for April-June period, helped by large deals in the application and infrastructure space. The Bangalore headquartered firm had posted a net profit of Rs 1,623.3 crore in the year-ago period, it said. Its June quarter IT services revenues rose 5 percent over the April quarter, to Rs 11,140 crore. However, dollar revenues at USD 1740.2 million were below expectations. Dollar revenues were up 1.16 percent quarter-on-quarter. The figures are in accordance with International Financial Reporting Standards (IFRS). Operating margins were down to 22.8 percent from 24.5 percent in the previous quarter, with the company attributing the decline to wage hikes. For the September quarter the company has guided for IT services revenues in the USD 1770-1810 million range, up 1.72-4 percent quarter-onquarter. The company said the September quarter revenue guidance

was based on a rupee-dollar rate of 59.66. Wipro chairman Premji said he saw a significant rise in business confidence in developed markets. Wipro CEO TK Kurien said the company continued to win large deals in the application and infrastructure services segments. These wins

demonstrate confidence of clients in Wipro's transformational capabilities and re-affirm their faith in its client engagement strategy, he added. Chief Financial Officer Suresh Senapathy said the company would continue to improve operational efficiencies, and invest in strategy.

HAVELLSâ&#x20AC;&#x2122; REVENUE RISE ELECTRIFYING, PROFIT GROWTH RESISTED BY EXPENSES

lectrical products manufacturer Havells India's first quarter (April-June) standalone net profit grew 13 percent at Rs 107 crore compared to Rs 94.7 crore in same quarter last year on account of strong revenue but impacted by higher expenses and tax cost. Total income from operations jumped 21.5 percent to Rs 1,277 crore from Rs 1,051.3 crore during the same period on growth across segments. Revenue from its switchgears business increased by 11.3 percent on yearly basis to Rs 307.3 crore and cable revenue jumped 32 percent to Rs 535 crore while lighting and fixtures revenue shot up 11.6 percent to Rs 165.4 crore and electrical consumer durables revenue grew 21.2 percent to Rs 269.3 crore in the quarter gone by. Operating profit (EBITDA) rose 14.9 percent at Rs 162 crore but margin declined 70 basis points at 12.7 percent compared to same quarter last year. Total expenses of the company shot up 21.65 percent yearon-year to Rs 1,135.55 crore and tax cost doubled to Rs 42.28 crore from Rs 20.73 crore during the same period. Meanwhile, Havells' European subsidiary Sylvania posted a net profit of euro 0.3 million in April-June quarter as against loss of euro 0.8 million in corresponding quarter of previous fiscal. Revenue increased marginally to euro 107.2 million from euro 106.7 million and EBITDA jumped to euro 4.6 million from 4.2 million during the same period. SEASONAL MAGAZINE 101

Q1 RESULTS ANALYSIS

FORCE MOTORS SHIFTS TO A HIGHER GEAR, PROMOTER GROUP UPS STAKE

orce Motors posted 35.87 percent increase in its net profit at Rs 19.39 crore for the first quarter ended June 30. The company had posted a net profit of Rs 14.27 crore for the same period of previous fiscal. Net sales of the Pune-based company rose to Rs 538.42 crore for the first quarter, as against Rs 497.13 crore in the same period of previous fiscal, Force Motors said. Force Motors sells a range of vehicles, including small commercial vehicles, multiutility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.

JUST DIAL DELIVERS A FLAT QUARTER

ndia's leading local search engine Just Dial saw flat bottomline growth and operating performance while revenue fared better. Net profit increased marginally to Rs 28.1 crore in the first quarter (AprilJune) of current financial year compared to Rs 28 crore in same quarter last year impacted by advertising spend. "The company had an one-off spend of around Rs 10 crore on advertising and data/content acquisition during the quarter as compared to Q1FY14," Just Dial said. Revenue grew 29 percent on yearly basis to Rs 135 crore in the quarter ended June 2014. VSS Mani, MD and CEO said, "Sales trends are looking quite healthy and geographic expansion plans are on track. Our search plus services are gaining good traction among the user community." The company currently has 20 search plus services (which launched in December 2013) live on the platform. Operating profit declined marginally to Rs 34 crore from Rs 36 crore and margin dropped 940 basis points year-on-year to 25.2 percent. Just Dial's database consisted 102 SEASONAL MAGAZINE

of approximately 14.1 million listings as of June 2014, up 48 percent compared to 9.5 million at the end of same quarter last year. It said Just Dial Global which has a license agreement with the company to operate in the US and Canada market through its subsidiary Just Dial Inc has expressed its inability to operate in the US and Canada market. The termination of the license agreement is under consideration. The license to operate in all geographies will rest with Just Dial post the termination, it added.

SKS MIRCOFINANCEâ&#x20AC;&#x2122;S PROFITS SOAR ON A LOW BASE

icrofinance company SKS Microfinance reported a net profit at Rs 49.3 crore in the April-June quarter over the year-ago period. The company had reported a net profit of Rs 4.96 crore during the same period last year. Net interest income grew by 41 per cent at Rs 89 crore from Rs 63 crore last year, the company said. During the period, the company reduced its cost of borrowing by 1 per cent, to 12.6 per cent, from 13.5 per cent in the same period last year. It's portfolio, excluding Andhra Pradesh and Telangana, registered a 39 per cent year-on-year increase at Rs 2,783 crore in the April-June period, from Rs 2,003 crore last year. Loan disbursements grew by 40 per cent to Rs 1,160 crore in the period from Rs 830 crore. As of June 30, 2014, SKS Microfinance had a net worth of Rs 891 crore and capital adequacy of 39.6 per cent. Cash and cash equivalents stood at Rs 488 crore. The company also announced a one per cent reduction in interest rate it charges from borrowers to 23.55 per cent from 24.55 per cent with effect from October 1.

SUZLON NARROWS LOSSES ON STRONG SALES

ind turbine maker Suzlon Energy saw its net loss come down to Rs 750.74 crore in the three months ended June 2014, mainly on the back of higher income. The company had incurred a net loss of Rs 1,058.90 crore in the same period a year ago. The figures are after taking into account the share in minority interest, it said. In the first quarter (ended June) of current fiscal, the firm's total income climbed to Rs 4,671.99 crore from Rs 3,896.71 crore in the year-ago period, reflecting an increase of about 20 per cent. "The recent Union Budget includes several policy measures which will have a positive impact on the wind energy sector in India. Suzlon is well positioned

to tap these opportunities by leveraging on its strengths. We stand committed to build on our technological edge and offer new age products and best in class services," Suzlon Energy Chairman Tulsi Tanti said. According to the wind turbine maker, there has been sustained increase in sales volumes and the re-instatement of accelerated depreciation policy would "bolster growth for the wind energy sector". "We continue to maintain a strong order book at 4.9 GW, valued at USD 7 billion. On the liability management front, we have successfully completed last leg with the restructuring of FCCBs (Foreign Currency Convertible Bonds)," Suzlon Energy's Group Head of Finance Kirti Vagadia said.

AXIS BANK IMPROVES BOTTOMLINE ON LOWER PROVISIONS, ASSET QUALITY CONCERNS LINGER

rivate sector lender Axis Bank reported a 18.3 percent growth in net profit at Rs 1,667 crore for the quarter ended June 2014 compared to Rs 1,703 crore in same quarter last year. Lower other income and higher operating expenses

dented profits despite significant fall in provisions. Net interest income grew 15.5 percent on yearly basis to Rs 3,310.5 crore during the quarter. Other income declined 5 percent to Rs 1,691 crore from Rs 1,781.3 crore while operating expenses jumped 16.8

percent year-on-year to Rs 2,105.9 crore in the quarter gone by. Provisions fell 45.7 percent on yearly basis (down 23.5 percent quarter-onquarter) to Rs 386.6 crore during April-June quarter. Asset quality disappointed with the nonperforming assets (NPA) rising 12 bps sequentially (up 24 bps Y-o-Y) to 1.34 percent and net NPA increasing marginally to 0.44 percent in June quarter from 0.40 percent in March quarter 2014 and 0.35 percent in same quarter last year. In absolute term, gross NPA jumped 39 percent year-on-year (up 10 percent Q-o-Q) to Rs 3,463.3 crore and net NPA rose 41 percent Y-o-Y (up 8.7 percent Qo-Q) to Rs 1,113.5 crore in the quarter ended June 2014. During the quarter, advances of the private sector lender grew 16.3 percent to Rs 2.3 lakh crore and deposits rose 14 percent to Rs 2.72 lakh crore compared to corresponding quarter of last fiscal. Capital adequacy ratio (as per BaselIII norms) declined to 15.53 percent in June quarter compared to 16.07 percent in previous quarter and 15.87 percent in the year-ago period. SEASONAL MAGAZINE 103

Q1 RESULTS ANALYSIS

HDFC CONTINUES PERFORMANCE HABIT, BUT MARGINS SLIP MARGINALLY

ousing finance company HDFC reported a 14.7 percent growth in first quarter net profit at Rs 1,345 crore compared to Rs 1,173 crore in same quarter last year. Net interest income shot up 14.7 percent on yearly basis to Rs 1,745 crore while income from operations grew 16 percent to Rs 6,446 crore during April-June quarter from Rs 5,557 crore in the year-ago period. Standalone net interest margin of the bank declined to 3.8 percent versus 3.9 percent during the same period. Chairman Deepak Parekh said gross non-performing loans were 0.7 percent in June quarter compared to 0.77 percent in same quarter last year. Gross NPLs were at Rs 1,434 crore as on June 2014 and first quarter spread on loans at 2.29 percent, he added. HDFC said its loan book during the quarter was at Rs 2.03 lakh crore as as against Rs 1.77 lakh crore as on June 2013. "This is after considering loans sold during the preceding 12 months amounting to Rs 6,980 crore," it added. Tax expenses jumped 16.2 percent year-on-year to Rs 505.6 crore in the quarter ended June 2014 while deferred tax liability on special reserve stood at Rs 74.44 crore for the quarter.

CANARA BANK'S PROFIT RISE SMALL, NPAs CONTINUE TO RISE QOQ

ublic sector lender Canara Bank's first quarter net profit grew 1.9 percent to Rs 807 crore on account of lower other income during the quarter despite fall in provisions. Its asset quality performance weakened on sequential basis. Net interest income grew 22 percent to Rs 2,429 crore during June quarter compared to Rs 1,991 crore in same quarter last year. Other income fell 17 percent on yearly basis to Rs 104 SEASONAL MAGAZINE

1,026.9 crore in the quarter gone by. Provisions dropped 27.8 percent quarter-on-quarter (down 14 percent year-on-year) to Rs 788 crore with the provision coverage ratio at 60.10 percent as on June 2014. Operating expenses increased to Rs 1,661.16 crore from Rs 1,331.14 crore Y-o-Y. Asset quality worsened further with the gross non-performing assets (NPA) rising by 18 basis points sequentially (down 24 basis points Y-o-Y) to 2.67 percent and

net NPAs increasing by 5 bps Q-o-Q (down 45 bps Y-o-Y) to 2.03 percent in the quarter gone by. In absolute term, gross NPA shot up 7.8 percent Q-o-Q and 11.3 percent Y-o-Y to Rs 8,159 crore and net NPA rose 3.1 percent sequentially (down 1 percent Y-o-Y) to Rs 6,150 crore during the quarter.

CENTRAL BANK OF INDIA MAKES A STRONG COMEBACK IN PROFITS

TATA COFFEE OFFERS A BITTER CUP

ata Coffee's first quarter (April-June) consolidated net profit declined by 25 percent to Rs 30.3 crore from Rs 40.4 crore in the same quarter last year on account of lower revenue and weak operational performance. The company's consolidated total income was down by 10.5 percent at Rs 374.5 crore versus Rs 418.5 crore, Y-o-Y. Its operating profit (earnings before interest, tax, depreciation and amortisation) dropped by 22 percent to Rs 80 crore from Rs 103 crore and margin was down by 300 basis points to 21.5 percent versus 24.5 percent, Y-o-Y.

YES BANKâ&#x20AC;&#x2122;S PROVISIONS DIVE, BUT PROFIT GROWTH MODEST

ublic sector lender Central Bank of India's first quarter net profit shot up 8.74 times to Rs 191.6 crore from Rs 21.9 crore in the same quarter last fiscal on strong net interest income and lower provisions but impacted by lower other income and huge tax cost. Net interest income grew 18.5 percent on yearly basis to Rs 1,822 crore in the quarter ended June 2014 while other income fell 27.9 percent to Rs 431.05 crore during the same period year-on-year. Asset quality improved sequentially with the gross non-performing assets (NPAs) declining (up 12 basis points year-on-year) to 6.15 percent in June quarter from 6.27 percent in March quarter and net NPA falling (down 23 bps) to 3.62 percent from 3.75 percent Q-o-Q. Provisions dropped 34.4 percent to Rs 644.8 crore in first quarter of current financial year 2014-15 from Rs 983.3 crore in corresponding quarter of last fiscal but increased 18.9 percent sequentially. Tax expenses for April-June quarter stood at Rs 137.14 crore as against refund of Rs 4.62 crore in same quarter last fiscal. Capital adequacy ratio (as per Basel-III norms) slipped to 9.62 percent from 9.87 percent on sequential basis and 11.32 percent on yearly basis.

rivate sector lender YES Bankâ&#x20AC;&#x2122;s first quarter net profit rose 9.7 percent only on yearly basis to Rs 439.5 crore, despite fall in provisions. Lower other income and higher operating expenses impacted bottomline. Net interest income grew 13 percent to Rs 745.3 crore in April-June quarter of current financial year 2014-15 from Rs 659 crore in corresponding quarter of last fiscal. Other income during the quarter declined 3.7 percent to Rs 425.6 crore while operating expenses jumped 25 percent to Rs 526.7 crore compared to same quarter last fiscal and due to which, operating profit fell 5.3 percent year-onyear to Rs 644.3 crore with the cost to income ratio at 45 percent. Provisions in the quarter ended June 2014 stood at Rs 23.7 crore, down 67.2 percent and 75.5 percent compared to Q4FY14 and Q1FY14, respectively. Asset quality slightly weakened on sequential basis with the gross non-performing assets (NPA) climbing (up 11 basis points Y-o-Y) to 0.33 percent in June quarter from 0.31 percent in March quarter 2014 and net NPA increasing to 0.07 percent from 0.05 percent Q-o-Q and 0.03 percent Y-oY. Net interest margin of the bank was unchanged at 3 percent during the quarter compared to previous quarter. The bank had raised Rs 2,942.1 crore via qualified institutional placement (QIP) in early June.

SEASONAL MAGAZINE 105

Q1 RESULTS ANALYSIS

SBI GROWS ITS QUARTERLY PROFITS, FIRST TIME IN LAST 6 QUARTERS

ndia's largest lender State Bank of India (SBI) swa its first quarter (April-June) net profit rising 3.3 percent year-on-year to Rs 3,349 crore on higher net interest income though it was impacted by higher provisions, tax cost and lower other income. Net profit in the yearago period was Rs 3,241.08 crore. The growth in profitability was for the first time in last six quarters. Net interest incomegrew by 15 percent to Rs 13,253 crore in the first quarter of current financial year 2014-15 from Rs 11,512 crore in the year-ago period with the domestic net interest margin improving sequentially to 3.54 percent from 3.49 percent. However, global net interest margin continued to saw some pressure during the quarter, down to 3.13 percent compared to 3.17 percent in previous quarter (it was at same level in Q1FY14) and 3.19 percent in Q3FY14. Other income (non-interest income) could not support profits during the quarter, declined 5 percent on yearly basis to Rs 4,252 crore from Rs 4,474.3 crore in corresponding quarter of last fiscal. Asset quality (overall) continued to be

stable during the quarter despite marginal rise on net basis. Gross nonperforming assets (NPA) slipped 5 basis points sequentially and 66 bps on yearly basis to 4.90 percent while net NPA fell 17 bps year-on-year (up 9 bps quarter-on-quarter) to 2.66 percent in

CORPORATION BANK HAS A DIFFICULT QUARTER, ANNOUNCES STOCK SPLIT

ublic sector lender Corporation Bank's net profit slipped 38.8 percent year-on-year to Rs 231.4 crore in the quarter ended June 2014 dented by lower net interest income and other income, and higher provisions. Profit in corresponding quarter of last fiscal was Rs 378 crore. Net interest income declined 2 percent to Rs 944.2 crore during April-June quarter from Rs 965 crore in same quarter last year while other income (non-interest income) dropped 37.8 percent to Rs 361.6 crore from Rs 581.2 crore during the same period. Asset quality of the bank worsened in the first quarter of current financial year 201415 with the gross non-performing assets (NPA) rising 54 basis points sequentially (up 159 bps on yearly basis) to 3.96 percent and net NPA increasing by 39 bps Q-o-Q (up 106 bps Y-o-Y) to 2.71 106 SEASONAL MAGAZINE

percent in the quarter gone by. In absolute terms, gross NPA during the quarter stood at Rs 5,470 crore, up 15.5 percent and 99 percent compared to previous quarter and the year-ago period and net NPA jumped 16 percent quarteron-quarter (up 94.4 percent year-onyear) to Rs 3,694.2 crore in the quarter ended June 2014. Provisions slipped 44 percent sequentially to Rs 458.9 crore from Rs 824.5 crore but that increased 2.66 percent compared to Rs 447 crore in same quarter last fiscal with the provision coverage ratio at 52.19 percent as on June 2014. Tax expenses during the quarter declined significantly to Rs 7.2 crore compared to Rs 170 crore in the year-ago period. Moreover, the board of directors approved the sub-division of one equity share of the bank having a face value of Rs 10 each into five equity shares of face value Rs 2 each.

the quarter gone by. In absolute terms, gross NPA of the bank declined 1.9 percent Q-o-Q (down 0.75 percent Yo-Y) to Rs 60,434 crore but net NPA increased 2.5 percent sequentially (up 6.3 percent yearly basis) to Rs 31,883 crore in the quarter ended June 2014. The public sector lender saw fresh restructuring of Rs 3,598 crore during the quarter, down compared to Rs 7,636 crore in previous quarter while fresh slippages were Rs 9,932 crore as against Rs 7,947 crore in previous quarter. Recoveries by the bank were Rs 3,185 crore and upgradations stood at Rs 1,362 crore in the quarter gone by, which both together were lower compared to Rs 8,843 crore in March quarter. The bank has written off loans worth Rs 6,556 crore in June quarter. Provisions dropped 30 percent quarteron-quarter (up 72 percent year-on-year) to Rs 3,903 crore in June quarter with the provision coverage ratio at 62.7 percent at the end of June 2014. Advances of the lender shot up 13 percent year-on-year to Rs 11.989 lakh crore while deposits grew by 12.85 percent to Rs 14.19 lakh crore in AprilJune quarter. Tax expenses during the quarter increased by 34.5 percent to Rs 1,942 crore from Rs 1,444 crore in corresponding quarter of last fiscal.

WONDERLA HOLIDAYS PROFITS SURGE BY 56%, STOCK RESUMES RALLY

onderla Holidays recorded a 56 percent jumped in its Q1FY15 (April-June) net profit at Rs 24.8 crore versus Rs 15.9 crore in a year ago period. The companyâ&#x20AC;&#x2122;s total income was up 23 percent at Rs 63.7 crore versus Rs 51.6 crore, Y-o-Y. The amusement parks company belonging to the V-Guard Group had earlier went in for its IPO that was hugely oversubscribed. The stock which was offered at Rs. 125 per share is now trading at over Rs. 260, aided also by the continuing good performance. Traditionally, Q1 is one of the strongest quarters for Wonderla due to the school vacations.

APOLLO TYRES GROWS BOTTOMLINE, EBITDA LEAVES ROOM FOR IMPROVEMENT

pollo Tyres, one of the largest tyre manufacturers in India, grew its net profit by 37.4 percent to Rs 228 crore in the quarter ended June 2014 aided by other income. Profit in the year-ago period was Rs 165.9 crore. Consolidated revenue increased 1.8 percent year-on-year to Rs 3,247.5 crore. Domestic revenue grew by 7 percent to Rs 2,328.2 crore and Europe revenue (subsidiary Vredestein) jumped 30.8 percent to Rs 950.3 crore but South African subsidiary Dunlop reported a 59 percent decline (which was expected as company sold PCR tyres to Sumitomo Rubber Industries) at Rs 159.77 crore during the quarter. Operating profit (EBITDA) in Q1FY15 grew by 40.8 percent to Rs 428 crore and margin expanded by 90 basis points to 13.2 percent compared to corresponding quarter of last fiscal. Dunlop's earnings before interest and tax (EBIT) dropped 90 percent year-on-year (down 80 percent sequentially) to Rs 1.7 crore and Vredestein's EBIT increased 20 percent Y-o-Y (down 24 percent Q-o-Q) to Rs 106.9 crore. Consolidated other income of the company jumped to Rs 29 crore in first quarter of FY15 from Rs 11 crore in the year-ago period while finance cost declined to Rs 52.96 crore from Rs 72.36 crore and tax increased to Rs 76.4 crore from Rs 67.6 crore during the same period.

IDBI BANK AGAIN ENTERS A TURBULENT PHASE

ublic sector lender IDBI Bank's net profit in April-June (Q1FY15) quarter plunged 66 percent to Rs 105 crore on account of lower other income and net interest income but supported by lower provisions. Profit in the year-ago period was Rs 307 crore. Net interest income slipped 15.3 percent on yearly basis to Rs 1,249.5 crore during the quarter while other income (non-interest income) dropped 30 percent year-on-year (down 56.5 percent sequentially) to Rs 500 crore in the quarter ended June 2014. "Interest income has remained stagnant partly due to larger outstanding under RIDF and other PSL linked deposits (Rs 18,435 crore as at June 30, 2014 compared to Rs 8,260 crore as at June 30, 2013)," said the bank. Asset quality of the bank deteriorated with the gross non-performing assets (NPA) rising 74 basis points quarter-on-quarter (up 130 bps year-on-year) to 5.64 percent and net NPA increasing 39 bps sequentially (up 71 bps on yearly basis) to 2.87 percent in April-June quarter. Provisions declined 6.5 percent (down 35 percent on sequential basis) to Rs 776.2 crore in the first quarter of current financial year 2014-15 from Rs 829.7 crore in same quarter last year. SEASONAL MAGAZINE 107

Q1 RESULTS ANALYSIS

OBC CUTS EXPENSES, BUT ASSET QUALITY SLIPS

pared to Rs 202.15 crore in the yearago period. Asset quality worsened further with the gross NPA rising 34 basis points sequentially (up 97 bps Y-o-Y) to 4.33 percent and net NPA increasing 29 bps quarter-on-quarter (up 77 points year-on-year) to 3.11 percent in the quarter gone by. In absolute terms, gross NPA shot up 39 percent year-on-year (up 6.5 percent quarter-on-quarter) to Rs 5,982.8 crore and net NPA rose 44 percent Yo-Y (up 8.3 percent Q-o-Q) to Rs 4,228.8 crore in the first quarter of current financial year 2014-15. Provisions increased 1.7 percent on yearly basis (down 41.8 percent sequentially) to Rs 541.6 crore in April-June quarter with provision coverage ratio at 59.11 percent at the end of the quarter.

ublic sector lender Oriental Bank of Commerce (OBC) has reported a 3 percent growth in net profit at Rs 364.5 crore in AprilJune quarter (Q1FY15) supported by other income and lower operating expenses but impacted by lower net interest income and higher provisions. Net profit in the year ago period was Rs 353.4 crore. Net interest income declined 5 percent on yearly basis to Rs 1,243 crore while other income (non-interest income) increased by 9.35 percent to Rs 588.20 crore in the quarter ended June 2014. Operating expenses during the quarter slipped 8.9 percent year-on-year to Rs 689.23 crore whereas tax cost rose to Rs 235.60 crore in June quarter com-

MUTHOOT CAPITAL GROWS TOP LINE, BOTTOM LINE FLAT

uthoot Capital Services has reported a standalone sales turnover of Rs 44.93 crore and a net profit of Rs 5.41 crore for the quarter ended Jun '14. Other income for the quarter was Rs 0.27 crore. For the quarter ended Jun 2013 the standalone sales turnover was Rs 34.72 crore and net profit was Rs 5.98 crore, and other income Rs 0.05 crore. The listed NBFC belongs to the well-diversified Muthoot Pappachan Group (MPG). Muthoot Capital stock has appreciated by 115.50% over the last 12 months.

PETRONET LNG PROFIT DIPS, BUT SALES GROWTH REASONABLE

etronet LNG has reported a standalone sales turnover of Rs 10,160.82 crore and a net profit of Rs 156.60 crore for the quarter ended Jun '14. Other income for the quarter was Rs 35.32 crore. For the quarter ended Jun 2013 the standalone sales turnover was Rs 8,444.20 crore and net profit was Rs 225.32 crore, and other income Rs 15.24 crore.

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POWER GRID PERFORMS WELL ON MOST FRONTS

tate-owned transmission utility Power Grid Corp reported more than nine percent rise in net profit at Rs 1,136.51 crore in three months ended June. The company had a net profit of Rs 1,040.34 crore in the year-ago period. Power Grid Corporation of India Ltd (PGCIL) posted a total income of Rs 4,075.11 crore in the first quarter of current fiscal. In the same period a year ago, total income stood at Rs 3,634.03 crore. "Out of the proceeds of Follow on Public Offer (FPO) made during the financial year 2013-14, a sum of Rs 2,782,16 lakh has been utilised up to June 30, 2014 as per the objects of the issue and the balance of Rs 2,525,00 lakh is kept in the banks as term deposits," the company said.

NIIT Learns How to Get Back Into Profit

ducation services provider NIIT turned profitable in first quarter (April-June) with the consolidated net at a measly Rs 60 lakh as against the loss of Rs 9.4 crore in the same quarter last fiscal. The once highflying learning solutions firm with an overseas footprint too, was deep in red during the last two fiscals. In Q1, the company's consolidated revenue was up marginally at Rs 225.3 crore versus Rs 222.2 crore, Y-o-Y. Operating profit (EBITDA) climbed 23 percent to Rs 12.8 crore from Rs 10.4 crore and margin improved by 100 basis points to 6 percent from 5 percent, Y-o-Y.

HCC FORTIFIES TURNAROUND, EYES RS. 750 CRORE QIP

umbai based Hindustan Construction Company (HCC) has reported a 41.1 percent yearon-year growth in net profit at Rs 27.1 crore in the quarter ended June 2014 driven by strong operational performance. "This is the fifth quarter in a row when company has shown positive results thereby establishing that its strategy of efficient project management, cost control and focus on claim management is yielding results consistently," the company said. However, total income from operations of the company declined 9.2 percent to Rs 1,043.5 crore during

SBT'S Q1 PROFIT DIVES

tate Bank of Travancore has reported its results for the quarter ended Jun '14. Standalone Net Interest Income (NII) for the quarter was Rs 2,423.54 crore and net profit was Rs 50.03 crore. Other income for the quarter was Rs 220.71 crore. For the quarter ended Jun 2013 the Standalone Net Interest Income (NII) was Rs 2364.29 crore and net profit was Rs 185.67 crore., and other income Rs 252.76 crore.

April-June quarter of FY15 compared to Rs 1,149.6 crore in the year-ago period while total expenses fell 15.8 percent on yearly basis to Rs 823.9 crore in the quarter gone by. Operating profit margin of the company shot up by 280 basis points to 20.4 percent in Q1FY15 from Rs 17.6 percent in Q1FY14. Other income increased to Rs 31.62 crore from Rs 26.82 crore and foreign exchange gain stood at Rs 0.63 crore during the quarter compared to loss of Rs 12.04 crore in the year-ago period whereas finance cost increased to Rs 156 crore from Rs 148 crore during the same period. During the quarter, HCC secured two new orders worth Rs 557 crore, taking total order book at Rs 13,897 crore at the end of June 2014 (excluding L1 contract worth Rs 753 crore). Moreover, the board of directors of the company approved raising of long term funds by way of issuance of equity shares through qualified institutional placement (QIP) for an amount not exceeding Rs 750 crore. SEASONAL MAGAZINE 109

Q1 RESULTS ANALYSIS

ANDHRA BANK'S PROFIT PLUNGES ON STATE'S FARM LOAN WAIVER POLICY

ndhra Bank's net profit decreased 53 per cent at Rs 107 crore in the first quarter ended June 30, 2014, compared to Rs 231 crore in the year-ago period. “The delay in loan waiver resulted in farmers not repaying their loans. This has resulted in farm loans worth Rs 1,078 crore turning into non-performing assets (NPAs),” its Chairman and Managing Director, CVR Rajendran infoormed. The bank, which was expecting a better performance this quarter due to the strong recovery of NPAs in other sectors totalling Rs 1,000 crore, had difficulty in getting board approval for the results. “We had to

explain in detail to get the accounts approved,” the CMD said. Net interest income had gone up by 12.5 per cent to Rs 3,810 crore from Rs 3,386 crore. The net interest margin (NIM) came down to 2.14 per cent. Without agricultural NPAs, it would have been above 3 per cent. The net NPAs had gone up to 3.89 per cent (3.11 per cent). For the full year, the bank is expecting to register 16 to 20 per cent credit growth with a NIM of about 3 per cent, Rajendran said. Andhra Bank had requested a capital infusion of Rs 800 crore from the Government this year and is expecting a response.

Is LIC Housing Finance Losing Steam?

irst, there was the shock of missing the “sure-shot” banking licence, despite parent LIC’s enormous clout. Then came the next shock, from RBI itself, when it allowed banks more leverage and flexibility to increase their affordable home loan business, which would be a direct hit on HFC NBFCs like HDFC and LIC Housing Finance. There is no doubt that the move will affect LIC HFL more than its bigger peer, as this LIC subsidiary was more into affordable loans than bigger loans. LIC Housing Finance has also been timid in pushing the other growth avenue - developer loans - due to old skeletons in their closet due to a scam which saw even their former MD & CEO getting arrested. In a way, valuations tell the whole story of growth prospects at LIC Housing. Number one player HDFC trades at 19.30 times P/ E, while LIC HFL is available at just 11.85 times. This is despite the lower base effect on growth that LIC Housing should enjoy, and despite the might of LIC which is India’s largest institutional investor that can practically re-rate the P/E of any performing company. What would it take for LIC Housing Finance to start performing again? Seasonal Magazine investigates:

LIC HOUSING FINANCE REPORTS SLOWER GROWTH, LOWER MARGIN, BUT ASSET QUALITY STABLE State-run LIC Housing Finance reported a 3.8 percent growth in profit after tax at Rs 322.3 crore in AprilJune quarter (Q1FY15), which was much lower than the growth of 17 percent reported in fourth quarter of FY14 and 27-38 percent in first three quarters of FY14. Net profit in the year-ago period was Rs 310.5 crore. Net profit before adjustment of deferred tax on special reserves was Rs 355 crore during the quarter. "During the quarter, the company has provided Rs 32.21 crore as deferred tax liability on special reserves in accordance with the National Housing Bank," said the company. Net interest income grew 11.5 percent to Rs

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506.2 crore in the quarter ended June 2014 from Rs 455 crore in same quarter last year. Net interest margin declined to 2.19 percent during January-March quarter from 2.30 percent in corresponding quarter of last fiscal. The company said the outstanding mortgage portfolio as on June 30, 2014 was Rs 93,609 crore as against Rs 80,137 crore in the yearago period, thus registering a growth of 17 percent. Gross non-performing assets (NPA) including NPAs on developer loans was unchanged at 0.80 percent while net NPAs declined to 0.49 percent in June quarter from 0.52 percent year-on-year.

Vijaya Bank Defies Banking Sector Performance

ijaya Bank reported a 21 percent jump in its AprilJune quarter (Q1FY15) net profit at Rs 161.5 crore versus Rs 132.5 crore, Y-o-Y. Net interest income of the bank rose 11 percent to Rs 535.5 crore against Rs 481 crore, Y-o-Y. However, other income was down 37 percent at Rs 166.2 crore against Rs 267 crore, Y-o-Y. Provisions were down at Rs 93.5 crore against Rs 275.6 crore in the previous quarter, while it was up against Rs 89 crore in the same quarter last fiscal. Gross NPA was at 2.68 percent versus 2.41 percent and net NPA was at 1.77 percent versus 1.55 percent, Q-o-Q. Capital adequacy ratio (as per Basel III norms) was at 10.46 percent versus 10.56 percent, Qo-Q and provision coverage ratio (PCR) stood at 63.75 percent as on June 30.

V-GUARD INDUSTRIES CONTINUES ITS IMPRESSIVE PERFORMANCE

-Guard Industries' Q1FY15 (April-June) net profit rose 26 percent at Rs 22.3 crore against Rs 17.6 crore in same quarter last year. The company's net sales were up 17 percent at Rs 473.9 crore versus Rs 406 crore, Y-o-Y. Other income for the quarter was Rs 0.66 crore. For the quarter ended Jun 2013, other income Rs 1.10 crore. The Kerala headquartered electrical and electronic appliance manufacturer is steadily growing its non-South revenue, and is on its path to become a national level player in all its segments like stabilizers, water pumps, water heaters, inverters, UPS etc. The V-Guard stock has been on a bull run for several months now, and had recently attracted high profile FIIs like a fund of MIT Business School.

KARUR VYSYA BANK'S NET FLAT, ASSET QUALITY CHALLENGES CONTINUE

rivate sector lender Karur Vysya Bank saw its first quarter (April-June) net profit rising 1.7 percent year-on-year to Rs 122 crore aided by lower provisions and tax cost but impacted by lower other income and slow growth in net interest income. The profit in the year-ago period was Rs 120 crore. Net interest income increased by 2.4 percent on yearly basis to Rs 340 crore from Rs 332 crore. During the quarter, other income (non-interest income) declined 43 percent to Rs 118 crore while tax expenses dropped 85.8 percent to Rs 5 crore crore compared to same quarter last year. Provisions slipped to Rs 86.4 crore from Rs 110 crore quarter-on-quarter and Rs 163 crore year-on-year with the provision

coverage ratio at 75.04 percent at the end of June 2014. Asset quality worsened with the gross nonperforming assets (NPA) rising 48 basis points sequentially to 1.3 percent and net NPA increasing 12 bps Q-o-Q to 0.53 percent in the quarter gone by. Gross NPA and net NPA in the yearago period were 1.51 percent and 0.5 percent, respectively.

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Q1 RESULTS ANALYSIS

UNION BANK OF INDIA PERFORMS WELL, GLOBAL BUSINESS SEES IMPROVEMENT

SU lender Union Bank of India saw its net profit rising 18.5 percent year-on-year at Rs 664 crore in April-June quarter led by lower provisions but impacted by lower other income and higher tax cost. Profit in the corresponding quarter of last fiscal was Rs 560.2 crore. Net interest income rose by 10.9 percent on yearly basis to Rs 2,117 crore in the quarter ended June 2014. "Domestic net interest margin improved to 2.68 percent in June quarter from 2.62 percent in March quarter 2014. It was 2.72 percent in the year-ago period. Global NIM in Q1FY15 was 2.6 percent, higher than 2.55 percent in Q4FY14. It was 2.63 percent in corresponding quarter of last fiscal," said the bank. Other income (non-interest income) during the quarter increased by 8.6 percent to Rs 691.4 crore in June quarter compared to Rs 756.3 crore in the year-ago period. Operating profit fell by 3.2 percent year-on-year to Rs

1,372 crore from Rs 1,417.7 crore while tax expenses shot up 85 percent Y-oY to Rs 315 crore in the quarter ended June 2014. Provisions in April-June quarter stood at Rs 393 crore, down significantly compared to Rs 920 crore in previous quarter and Rs 681 crore in corresponding quarter of last fiscal with the provision coverage ratio at

CAN FIN HOMES PROGRESSES ON GROWTH TRACK, ANNOUNCES RIGHTS ISSUE

an Fin Homes has reported a standalone sales turnover of Rs 176.00 crore and a net profit of Rs 18.96 crore for the quarter ended Jun '14. For the quarter ended Jun 2013 the standalone sales turnover was Rs 126.59 crore and net profit was Rs 16.51 crore. The public sector housing finance company's stock has been a strong performer during the year-to-date, on strong fundamental performance, as well as a re-rating brought about by investment by NR Narayana Murthy's Catamaran.

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58.92 percent as on June 2014. However, asset quality weakened during the quarter with the gross nonperforming assets (NPA) rising by 19 basis points sequentially (up 77 basis points Y-o-) to 4.27 percent. Net NPA jumped by 13 basis points quarter-onquarter and 50 bps year-on-year to 2.46 percent in June quarter. The bank restructured loans worth Rs 465 crore in Q1FY15, which was lower compared to Rs 1,425 crore in previous quarter while fresh slippages during the quarter stood at Rs 1,274 crore versus Rs 1,199 crore Q-o-Q. "Global business grew by 13.21 percent year-on-year to Rs 5.37 lakh crore with the global deposits rising by 9.5 percent to Rs 2.97 lakh crore," said the bank, adding global advances increased by 18.14 percent to Rs 2.39 lakh crore with domestic advances growing 18.19 percent to Rs 2.22 lakh crore. Advances to retail, agriculture, and small, micro and medium enterprises jumped 30.82 percent on yearly basis to Rs 98,906 crore. Domestic deposits grew by 9.17 percent to Rs 2.93 lakh crore during the same period.

UCO BANK BOTTOMLINE FLAT ON FALL IN OTHER INCOME, BUT ASSET QUALITY IMPROVES

ublic sector lender UCO Bank has reported a net profit of Rs 520 crore in the first quarter (April-June) of current financial year, increased marginally (1.7 percent) compared to Rs 511 crore in same quarter last year on account of significant fall in other income. Net interest income grew 8.7 percent on yearly basis to Rs 1,483 crore from Rs 1,364 crore while other income fell 30 percent to Rs 322.23 crore from Rs 461.9 crore year-on-year. Asset quality improved during the quarter with the gross NPA declined sequentially (down 127 basis points Y-o-Y) to 4.31 percent from 4.32 percent and net NPA falling 5 basis points Q-o-Q (82 bps year-onyear) to 2.33 percent in the quarter ended June 2014. Provisions dropped 42.9 percent on sequential basis (down 30.2 percent on yearly basis) to Rs 517 crore during first quarter of current

financial year 2014-15 that helped the bottomline. Tax expenses shot up nearly 14 times at Rs 163.5 crore in June quarter compared to Rs 12 crore in corresponding quarter of previous financial year.

BANK LICENSE WINNER IDFC Q1 REPORTS A TOUGH QUARTER

DFC, which focuses on financing of core infrastructure assets in India, reported a 13.6 percent decline in consolidated net profit at Rs 481.7 crore in April-June quarter (Q1FY15) compared to Rs 557.3 crore in corresponding quarter of last fiscal, impacted by higher expenses (mainly due to provisions) but supported by other income and lower tax cost. Consolidated total income from operations declined, too, during the quarter at Rs 2,122.5 crore, down 7.6 percent compared to Rs 2,298 crore in the year-ago period. Asset quality of the company worsened with the gross nonperforming assets (NPA) rising 8 basis points sequentially to 0.64 percent and net NPA growing 6 bps to 0.43 percent in the quarter ended June 2014 but that was still below the guidance of 1 percent to over 1 percent given by the management. Total expenses jumped by 31 percent to Rs 258.94 crore in first

GODREJ PROPERTIES DEFIES REALTY SLOWDOWN FOR NOW

quarter of current financial year 201415 from Rs 197.61 crore in same quarter last fiscal due to higher provisions while other income saw a substantial increase at Rs 66.6 crore in Q1FY15 as against Rs 0.57 crore in Q1FY14. Provisions increased 3.4 times year-on-year to Rs 203.9 crore during the quarter but declined 57.7 percent sequentially. The lender has reported a writeback of Rs 79.67 crore on the depreciation and amortisation front as against expenses of Rs 7.62 crore in corresponding quarter of last fiscal due to change in depreciation method according to new Companies Act 2013. Tax expenses of the company dropped 46 percent to Rs 141.60 crore in the quarter ended June 2014 compared to Rs 262.71 crore in the year-ago period while finance cost jumped to Rs 1,302 crore from Rs 1,277.5 crore during the same period.

ealty firm Godrej Properties reported 16 per cent increase in its consolidated net profit to Rs 45.61 crore for the quarter ended June on higher sales. Net profit stood at Rs 39.47 crore in the year-ago period. Total income rose by 49 per cent to Rs 363 crore in the first quarter of this fiscal compared with Rs 244 crore in the corresponding period of previous year, Godrej Properties, the realty firm of the Godrej Group, said. During the quarter ended June, Godrej Properties' sales bookings rose to Rs 824 crore from Rs 606 crore in the year-ago period. In volume terms, sales bookings increased to 1.09 million sq ft from 0.6 million sq ft during the period under review. Commenting on the financial performance, Godrej Properties Managing Director & CEO Pirojsha Godrej said: "We have had a strong beginning to calendar year (CY) 2014. Our total sales for H1 CY14 are almost equal to sales in all of CY13". "The response to our new project launches in Gurgaon and Pune has been excellent. We look forward to sustaining the momentum in the year ahead," he added. The company added one new project in Gurgaon with 1.6 million sq ft of saleable area during the first quarter. Godrej Properties is currently developing residential, commercial and township projects spread across 9.3 million square meters (100 million sq ft) in 12 cities. SEASONAL MAGAZINE 113

I N - F O C U S

Financial Inclusion, “Technology, and Diversifications, Will Bring in Growth for Manappuram ” anappuram Finance, India’s first listed gold loan company grew at a blistering pace between FY’07 and FY’12 when it saw its revenue rising by an unbelievable 62 times, and its profits rising by a befitting 54 times. That was also the time when its main and only asset class, gold was on a roll. But ever since then, growth was moderated by a slew of regulatory reforms, as well as gold prices falling and consolidating. Managing Director & CEO, VP Nandakumar, a former banker, has been holding the fort admirably since this downturn started, and now feels that the worst days are over for Manappuram Finance as well as the entire gold loan industry. As somebody who defined the trends by identifying the scope for a listed gold loan business that attracted the likes of Sequoia way back in the last decade, Nandakumar is again placing his bets on three new trends to shape the future for all stakeholders of Manappuram - financial inclusion, technology, & diversifications. With PM Modi himself identifying financial inclusion for all as one of the main agendas during his first Independence Day speech, visionary entrepreneurs like Nandakumar cant be wrong. Even while diversifying into home finance, micro finance, auto finance, & finance of consumer durables, Nandakumar is quick to point out that gold finance will remain the mainstay of the listed Manappuram Finance Ltd, for the limitless scope this business offers in India. He is a firm believer that, sooner rather than later, gold loans will be recognized as a financial inclusion tool, and that by innovating on the technology front, Manappuram can carve an edge for itself, and get back to the high growth trajectory. Seasonal Magazine in a conversation with VP Nandakumar:

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It ha hass been a ffe succ sive e w suc c e s siv e age in A off shrink shrinkage Assse setts Under quartter erss o quar Managemen UM) ffor or gold loan Managementt (A (AUM) companie am ompaniess including Manappur Manappuram Financ e. But rrec ec en tly yyou ou ha inance ecen ently havve guided or this for an A UM gr off 5-6% ffor AUM gro owth o fisc al. Is the tr end rre ever sing finally ffor or fiscal. trend ersing Manappur am? Manappuram? Yes, definitely the trend is reversing. AUM shrinkage is easing and it will start to register growth from here. In the current fiscal, the growth is expected to be minimal of 5-6%, due to this legacy of old loans, but in the next fiscal we hope to register an AUM growth of around 15%. None of these are official guidance figures, as it is quite difficult to put a specific percentage or number on the variations in gold loan business, but yes, the trend is reversing finally, and we are set for growth again.

Y ou ha e bullish about You havve been quit quite t w o rrec ec en st first ecen entt RBI mo movv e s, the fir regar ding non-deposit ttaking aking NBF Cs egarding NBFC lik e Manappur am FFinanc inanc e being like Manappuram inance eligible ffor or appoin tmen appointmen tmentt a ass banking corr esponden ond being orre spondentts, and the sec second the pr ospec or being ccon on prospec ospectts ffor onvver ertted in intto a specializ ed bank or small bank. specialized Wher e do the se st and no w? Where these stand now Yes, we have been bullish on both fronts. Regarding the banking correspondent activity, already a few public sector as well as private banks are talking with us. They have initiated the talks, especially the North based

banks that don’t have a huge presence here in South of this country. Manappuram is a ready fit for furthering their financial inclusion agenda in South due to our higher density of branches over here. We are actively considering their proposals. Regarding small banks, we had been bullish, yes, but now our thinking is that we may not fit into the small bank

mould due to our larger size. Instead, we will await the new guidelines for regular banking licenses that are due out in December. If we are eligible, which is highly likely, we will apply for a regular banking licence. Ar e yyou ou vver er Are eryy bullish about the being egular bank? con onvver ertted in intto a rregular We are reasonably bullish, and more

than that, our thinking is that since the acceptance of the Nachiket Mor committee on financial inclusion, RBI is clearly favouring gradual conversion of large NBFCs into banks, with the remaining small NBFCs to be transferred to state government control. Besides this, newer regulations are much more flexible like the extended period for reducing promoter stake etc, and with the RBI’s ambition to provide banking licence on-tap, we think this will be the preferred choice for all large NBFCs like Manappuram, if not the only choice before them. Gold ha using ffor or the la st hass been pa pausing last s. Wher ou see se al quar sevver eral quartter ers. Where e do yyou gold pric es heading? Will it tr end price trend do wn, or rre esume it ear rrally ally down, itss multi-y multi-year on the sa ? angle? saffe ha havven angle I think gold is fairly priced now, considering the international mining costs and the small margins getting added to it at various levels. It will not trend down much, and any further rally, as you said, will rely more on the safe haven aspect. And that part nobody can predict.

“Estimates put India’s privately held gold to be somewhere around 20,000 tonnes, of which 65% belongs to rural households, of which only a miniscule percentage has been put to productive use through gold loans. That will change due to greater acceptability of this product brought about by greater availability and full transparency.”

CRISIL ha air vvalue alue o hass a asssigned a ffair off Rs. 26 ffor or Manappur am st ock. Do yyou ou Manappuram stock. agr ee ? agree ee? No, obviously I don’t agree, because they have estimated it on the current financials which is already history. The gold loan business for Manappuram as well as others is definitely turning around, it is gathering momentum, and you will see rating agencies putting out fair values like Rs. 40 or more. RBI ha ec en tly allo hass rrec ecen ently allow bankss tto wed bank o se higher amoun disburse amountt s in nondisbur agricultur al gold loans. Will this mo agricultural movve a f f ec C s lik e ectt gold loan NBF NBFC like Manappur am, going ffor or war d? Manappuram, orw ard? No, I don’t think it will have any impact on Manappuram, as our typical customers, ticket sizes, and tenures are much different. There is also the undeniable aspect of a higher quality of service. Str ategy-wise w do yyou ou plan tto o Stra egy-wise,, ho how en tia am FFinanc inanc e’s difffer eren entia tiatte Manappur Manappuram inance’s dif pr oduc om yyour our peer s, eespecially specially produc oductts fr from peers, SEASONAL MAGAZINE 115

the o ther NBF Cs? other NBFC I don’t think there is any more room left for competition among peers, in a strategic sense. Like, earlier we were competing on dimensions like LTV, interest etc. Since the last two years, gold loans has become a much more regulated market, and the regulator has largely removed the scope for such competition. Instead, what we plan to do is compete with others using technology as a leverage. C an yyou ou elabor ate on tha Can elabora thatt plan? Well, what we are witnessing today is the rapid change brought about by technology. Be it online retailers like Flipkart or telemedicine driven hospitals, technology is shaping the future. Financial services too is no exception, with innovations like net banking and mobile banking already here. Frontline private banks and NBFCs are offering multi-crore personal loans swiftly, based on machine-made decisions on metrics like CIBIL score etc. So, what we are doing is, we are constantly thinking of bettering our core gold loan services using technology. Some tech majors are helping us out on this, and we also have an in-house tech division that can create, test, and integrate such solutions. And I believe that this is not only about competing effectively and a higher market share; but that it is about the very survival of any organization. If we don’t embrace tech in a dynamic way, tech trends will shape the industry in some other way that we won’t like. Nobody can predict what will be the shape of many service industries, one year from here. TThe he list ed Manappur am FFinanc inanc e is listed Manappuram inance er sific ation spr ee e do diver ersific sifica spree ee.. Wher Where on a div the se initia tiv es st and no w? these initiativ tive stand now Diversification was a natural progression, and it was speeded up by our regulator RBI clearly favouring it. Instead of just one asset class - gold loans - the regulator wanted us to pursue various other asset classes to reduce the perceived risk. We had taken over a home finance business from Jaypee Group sometime back, and it now has all necessary approvals 116 SEASONAL MAGAZINE

“75% of the gold loan business is still controlled by private moneylenders who charge exorbitantly. So, there is a huge room for growth for organized players like Manappuram Finance in this business, and we hope to tap it by various tech-enabled services.” to start operating. A competent CEO is being identified and it will soon commence operation, with its headquarters being in Mumbai. It will focus on the affordable segment of home loans, which is much broader now, but with the typical ticket-size being around Rs. 15 lakhs. We are in the process of identifying a suitable microfinance institution for takeover, and our microfinance operation will be headquartered in Chennai. Both the home finance and micro finance companies will be 100% subsidiaries of Manappuram Finance. We are already into vehicle and consumer durables finance, and these activities are being beefed up. Domestic moneytransfer service is another area we are getting into shortly, after our successful foray into overseas money transfer. Overall, our aim is to diversify at least 50% of our business or assets into non-gold activities. TTha ha hatt also means gold loans will remain yyour our mainst ay. Wha es mainsta Whatt mak make you so bullish about it? There are several dimensions to it, but the main angle is that compared with the household gold in this country, only a miniscule percentage has been put to productive use through gold loans. That will change due to greater acceptability of this product brought about by greater availability and full transparency. Estimates put India’s privately held gold to be somewhere around 20,000 tonnes, of which 65%

belongs to rural households. And 75% of the gold loan business is still controlled by private moneylenders who charge exorbitantly. So, there is a huge room for growth for organized players like Manappuram in this business, and we hope to tap it by various tech-enabled services. Y ou had st ar al vven en tur es You star artted se sevver eral entur ture side the list ed Manappur am outside listed Manappuram out Financ e, lik e MA car e Diagnostic s, Riti inance like MAc are Diagnostics, o FFarm arm eettc. Wher e do Je weller Jew elleryy, Magr Magro Where the and no w? theyy st stand now All of them are progressing well. Riti has already achieved break-even status, which has been one of the fastest performances in the multi-city multi-branch gold retailing industry. MAcare is fast nearing the break-even status, and it already has several enquiries for private equity infusion, which we are not keen at this stage. Magro Farm is mainly into coconut oil and milk production, and it has already launched its own brand Mafarm. That too is progressing well. Ar e yyou ou eeyyeing any major fund Are raising thr ough QIP eett c ffor or through Manappur am FFinanc inanc e? Manappuram inance No, we are comfortably capitalized, and don’t see the need for any further capitalization at the moment. LLa ast time w e me t, which w as be e we met, wa beffor ore tions, yyou ou w er e vver er wer ere eryy bullish elections, the elec on Modi ccoming oming in. Ho w do yyou ou How asse tion no w? sesss the situa situation now I remain bullish on India, as it is today led by a leader whose party has majority on its own, and as such, can take difficult decisions on his own without waiting for a consensus. My observation since Modi’s rise to power is that this PM has no other agenda than economic development. I am also very optimistic about the leadership at RBI. Though earlier Governors too have been knowledgeable, Raghuram Rajan has been much more dynamic as well as independent, and I am confident that his tenure will see a revolution in the financial services industry, driven by the government’s agenda to speed up financial inclusion for all. SM

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By Carl Jaison:

C R I C K E T

IS JACQUES KALLIS GREATER THAN LARA, TENDULKAR, WARNE, AND PONTING? When Jacques Kallis finally admitted that the 2015 World Cup will be a bridge too far for him, the cricketing world was not shocked. The 38-year old Kallis' retirement from ODIs was very much expected, after his retirement from Tests last year, and his rather poor form in ODIs due to a back injury since then. But the real shock for the discerning cricket lover is why he isn't termed as one of the game's greatest, like his contemporaries like Brian Lara, Sachin Tendulkar, Shane Warne, or Ricky Ponting. ritics cite many reasons like his lack of charisma, lack of captaincy skills, lack of contribution to team strategy, lack of a World Cup win, and a steady-but-slow batting style. Though all of these are true, they are true only to an extent, and the real reason why Jacques Kallis was never hyped up as one of the greatest by the media, was outside of his control. Since his debut around two decades back, the game moved away from the control of all-rounders to the new super-specialists - players specialising in only one niche like batting, bowling, or fielding. Kallis' fault was his ambition to contribute to all three aspects of the game, but ironically that very fault has made him equal to a legendary great like Gary Sobers now. To cut a long argument short, there is simply no contemporary player who did all three jobs with as much achievements as Jack, and that speaks for itself. He is indeed that rare 'Jack of all Trades, Yet Master of All', who deserves a stand-up ovation as one of cricket's all-time greats. His laid-back persona perhaps keeps him out of the conversation for the greatest of all time cricketers for some 118 SEASONAL MAGAZINE

critics. Lacking the swashbuckling exploits of Brian Lara, god-like charisma of Tendulkar and matchwinning aggression of Shane Warne or even the unquestionable popularity of Ricky Ponting, South African legend Jack Kallis has indeed ended his career in relative anonymity. Despite the general perception, Kallis bids goodbye to the 22-yard strip being the only cricketer in the history of this wonderful game to have scored more than 10000 runs and taken in excess of 250 wickets in both forms of the game. And his retirement from Tests was a reflection of his career. No hullabaloo, just hard-fought Test Cricket. The farewell was a fairytale. Walking out to a guard of honour, he treated his fans with a typical Kallis innings for the last time. Match hanging on a knife-edge, turning track and a fading light. Unfazed by the emotion and stage, concentration powers at its zenith, he compiled flawless 115 runs in 316 balls. 45 hundreds and 13289 Test runs at a better average (55.37) than these four legends while taking 292 wickets speaks volumes of Kallis’ enormous contribution to the competitiveness of the game. Moreover, he has amassed

11579 runs to go with 131 wickets in ODI cricket. Add to that his 331 catches- ‘bucket like hands’ (including Tests and ODIs), and you have a colossus, to whom any contemporary cannot even dare to come within touching distance. It might seem these numbers are achieved by three different players. And even if that was the case, those three different individuals would happily take that as an arduous but exceedingly successful endeavor. And that simply was how one would define the cricketer in Kallis. Having started his playing career with a scratchy form against England 19 years ago, Kallis gradually developed into the near-perfect mould of all-time great Gary Sobers. Back then, he was a raw and untested youngster, eager to make his presence felt in the test arena. Anyone who watched him giving his 100% effort on the field, be it while batting, bowling or fielding, would instantly foresee a legend-in-themaking. Kallis had to wait till the early 21st century era to stake his claim as a fine-tuned and complete cricketer having played under the wings of South African greats Hansie Cronje, Lance Klusener, Shaun Pollock and Gary Kirsten. South African cricket faced an indomitable task of finding the right replacements for their golden generation of cricketers and a more matured Jack Kallis took up the mantle. A player of the previous generational crop, the world witnessed Kallis cricketing abilities at the peak of his career as he took responsibility of rebuilding a fresh team in an exciting phase for South African cricket. Over his illustrious career, he played match-defining knocks many a time.

which is difficult to drive off the front foot but cannot be played off the back foot either. After his spell, the run rate drops down. And strike bowlers can strive for wickets without worrying about the run rate”. Moreover, in the most successful bowling pairs in history, Kallis features twice. He was his captain’s go-to man whenever the chips were down. Renowned commentator and cricket analyst Harsha Bhogle once quipped that ‘for an all-rounder, Kallis was a nose ahead of Gary Sobers. “Sobers batted largely from No. 6, which some might say is an easier number but affords fewer opportunities, while Kallis, amazingly for an allrounder, batted from No. 3 or 4, which meant he had more time but also often had to change bowling shoes for the half-spikes rather quickly” wrote Bhogle. Perhaps this statement underlined Kallis’ unmatched utility as the game’s greatest ever allrounder though Bhogle admits that it was hugely unfair that greats of the past will be measured in numbers today.

45 hundreds and 13289 Test runs, as well as 292 wickets, speaks volumes of Kallis’ enormous contribution to the competitiveness of the game. Moreover, he has amassed 11579 runs to go with 131 wickets in ODI cricket. Add to that his 331 catches! But the one that defined the man himself was the second-inningmasterpiece against India at Cape Town in 2011. Wickets tumbled around him but he held the fort defying tremendous pain and also, denied India its first ever series win in South Africa. He ended up scoring an unbeaten 109 with broken ribs. However, he hasn’t been blessed with the privilege of lifting the ICC World Cup trophy, something which will haunt the rest of the team in the years to come. The only blot on his enviable career record would be his team’s reputation of earning the ‘chokers of cricket’ tag. In his trophy cabinet, Kallis can only boast of having won the first-ever edition of the nowdefunct ICC Champions Trophy (the 1998 edition was referred to as the Wills International Cup) and ever since a major silverware has eluded him and his star-studded team.

As a batsman, Kallis was the ultimate ‘sweet-timer’ of the ball, be it his lunging cover drives with a tinge of majestic beauty in it or his trademark back-foot punch that would leave the cover fielders in awe. But his consistent exploits with the willow have somewhat overshadowed his decisive contribution with the ball, in an era when fast bowlers are plagued with injuries. Once, Sachin Tendulkar had articulated it precisely while giving a pep talk to Mumbai under-22 team. Mumbai had lost the opening game of the season in spite of scoring in excess of 400. The morale was low. Tendulkar was around the BKC ground so the coach requested him to have a word with players. “Observe what the South African team does”, he said, “If their attacking bowlers are not successful with the new ball, Jacques Kallis comes on. He bowls that sort of a length,

But Kallis would be remembered for things beyond the scope of technical mastery: his measured aggression, fairness of play and laudable sportsmanship. In Hyderabad, batting for the Kolkata Knight Riders, Jacques Kallis lofted a ball to midwicket, where the fielder stumbled in an attempt to take the catch. You couldn't tell straightaway if the catch had been taken, but even as the umpire asked for a replay, Kallis asked the fielder if the catch was clean, and when he heard "Yes", he walked off. It wasn't the first time he had trusted an opponent with his wicket, and as the replay came up one could be found wishing the catch was indeed clean. For there is no sadder sight than to see trust asked for and the request spurned. In an ideal world everyone will play the game like Kallis did, life will become easier for the umpires, and youngsters making their way into sport will realise that using abuse and cheating is a rather lowly form of existence. But the desire to win tests not only your skill but your approach and Kallis remains an ideal epitome of how cricket is to be played. SM

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C E L E B R I T Y

Sachin on Parents, Brothers, Kids, and Life Changing Events nce again terming it his best Test ton, batting legend Sachin Tendulkar today said his career took flight following the knock of 114 on a bouncy WACA track in 1992, adding that the innings against a hostile Australian attack in Perth gave him immense confidence. "One innings that changed my career or gave shape to my career was in Perth, 1992. Perth, at least at that time, was regarded to be the fastest wicket and the hostility of the Australian fast bowlers was something which was difficult to handle. I was able to score a 100 and I was only 19," he said during an interaction with school children here. "And just two matches before that, I had scored a hundred in Sydney but they were two different kinds of surfaces. I knew that Perth was the kind of wicket which I would not get to play anywhere in the world and If I can bat on Perth and score runs

then I am possibly equipped to go on any other track which is fast and bouncy and score runs there. "My career was just starting. I had done well for a couple of years by then but it really took off after that Perth innings because I felt I was ready to take on the world. By no means I was over confident but I became a confident cricketer where any challenge put up against me, I was equipped to face that," he added. The retired great was interacted with students at an international school in Mumbai. His response came when he was asked by a student to rate his

best Test century out of the 51 tons he had scored in his 24-year international career in which he also notched up 49 ODI hundreds to make it a round 100 centuries. Tendulkar hung up his boots last November after a glittering career that saw him amass 15,921 runs in Tests, at an average of 53.78, and 18426 runs in 463 ODIs at an average of 44.83. The batting maestro said though his father was not interested in cricket he supported Tendulkar when it came to choosing his career, and he would do the same for his children. "In my case my father didn`t decide that I should play cricket. He gave me the freedom to express myself. Above all he found out what I was interested in and of course it was with the help of my brother. "My father was not interested in cricket at all but it was my brother`s initiative. My brother said we need to make him join a summer camp and partially also because I was a very naughty kid. That is how my career started," he said. "I want the same thing to happen to my children. My son (Arjun) enjoys cricket. Earlier he enjoyed playing football and then it was chess. Now it is cricket. "So whatever he wants to be in life, all I have asked him is to be sincere and honest. I have told him that I will support you and guide you in whatever you want to be in life. "So is the case with my daughter (Sara). She wants to follow her mother`s footsteps. She wants to become a doctor or go the medical side and she has full backing. So it is their choice," he added. SM

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HOMEBUYING

7 DOCUMENTS TO CHECK BEFORE BUYING ANY APARTMENT What factors do you look for, while comparing apartments? Without any doubt, the property’s location, price and possession, will be the first and foremost parameters one might consider for his/her shortlisting. However, apart from these primary ones, a few more things are necessary to check before finalizing upon a deal. Let us now find out those legal documents one must ask for, before making any kind of financial commitment. Asking and checking for the copies of the following necessary permissions and clearance certificates, will avoid you from being stuck into any judicial tangle in future.

Therefore, ensure that the property you purchase lies in the residential zone, by applying to the urban development authority and check the certificate for the same. With the expanding cities, you may often find agricultural land converting to non-residential purpose by paying some fees to the government. During such situations, check for the endorsement order from the zonal deputy commissioner (or tehsildar). This order is a license for residential construction on the land.

5) Master Plan: Many a times, you will find builders claiming future infrastructural development planned in the area, such as a highway or an upcoming metro. Before believing everything blindfolded, you must look at the area’s master planning personally for verification. You can very easily find such plans available with the town planning department.

6) Check for the NOCs:

1) Title Deed: This, also called the land record, is a relevant document as it gives you the requisite information about the ownership rights, obligations and mortgages (if any) on the property. Therefore, this document is a validation of whether the property land is registered, and its development rights transferred. You can obtain a copy for this from your builder and get the same verified from the land record office.

2) Certificate of the Project’s Commencement: This document is necessary to mark beginning of the property’s construction. Post the analysis of the construction’s foundation and inspection of its boundaries, one can get this clearance certificate issued from town planning and engineering department. This is also a good indication of the builder obtaining the required licenses and permissions for the map. Even before you actually start digging up, you must have all these things sanctioned.

3) Verification of the Plan’s Approval:

It is advantageous to verify for the approval of the building and layout plan. This is like running an additional check to ensure that the plan does not violate or break any by law applicable in the construction area. In addition, you should also make sure the floor area, where your flat is booked, approved well in the building plan. The design plan must be in accordance with the NBC guidelines. NBC, or National Building Code of India, is a code to understand the regulation of building’s construction activities throughout the country. One must get this checked with the local municipal authorities. Some construction projects also claim for a green stature. In this, either of the Indian Green Building Council, or GRIHA should certify of the project. GRIHA is Green Buildings Rating System India, which is a TERI University’s initiative. These certifications focus on a rating a building, based on energy, water and waste management. GRIHA stands as the most popular rating system available in India right now, also having standardized norms.

4) Certificate for Land Use: Having residential property in a commercial or an industrial zone is illegal.

Wherever applicable, ask for a No Objection Certificate of your urban land ceiling from your builder. You may also check the NOC for environmental clearance, as well as from the electricity and water authorities, if present.

7) Bank Approval: To verify whether or not, your project has clean and transparent paper work, a very simple and convenient way is to check if the same has loan approvals from the financial institutions. Banks have quite tough rules for lending, due to which they do all the important due diligence before clearing the loans. However, this may not be always errorfree. There were many cases in past where the builder had the support from bank, still the project landed in to financial or legal troubles. Therefore, it is always on your advantage to get some professional help. If required, you may even seek for a paid opinion from an advocate specializing in property transactions, and even get your document verification done. Once you are sure of the above-mentioned documents to be in their proper place and done with the verification, you may proceed with making your final decision without much anxiousness or worrying around. SEASONAL MAGAZINE 121

L T

How Blood Donation is Heart Healthy

Donating blood could be an easy way to reduce your risk of heart disease.

Shift workers, take note! Donating blood could be an easy way to reduce your risk of heart disease, a new study suggests.

hift workers, take note! Donating blood could be an easy way to reduce your risk of heart disease, a new study suggests.

resembling shift patterns common in industry. It was found that "jetlagged" animals showed higher numbers of aged red blood cells, which accumulated in the blood vessels.

Austrian researchers have found that jetlag has severe effects on red blood cells, possibly explaining the high incidence of heart disease seen in shift workers. However, these effects can be counterbalanced by fresh, young red blood cells - making blood donations a potential therapy for shift workers.

"Normally there is a balance between newly produced red blood cells and old ones which are removed from the blood," Egg said.

The scientists, led by Dr Margit Egg from the University of Innsbruck, Austria, worked on zebrafish, a model organism which, like humans, is active during the day. The fish were subjected to alternate short (7 hour) and long (21 hour) days, 122 SEASONAL MAGAZINE

Old cells are less flexible and become stuck in the spleen and liver, where they are engulfed by white blood cells. Jetlag appears to disrupt this removal process, but the researchers are currently unsure why this is the case. Large aggregates of old red blood cells in the vessels are risky, because this increases the chance of a clot that could lead to a heart attack. This may explain why shift workers have a 30 per cent higher risk of cardiovascular

disease. In addition, the decreased functionality of the aged cells reduces the oxygen carrying capacity of the blood. The researchers also found that zebrafish were less badly affected by jetlag if they were simultaneously exposed to conditions where oxygen was limiting (known as hypoxia). This is because hypoxia stimulates the production of fresh red blood cells. The cell signalling pathways which regulate daily rhythms and the hypoxic response are intrinsically linked. This is based on the observation that genes activated by hypoxia, such as erythropoietin, which regulates red blood cell production, normally show a daily rhythm of activity which becomes disturbed under hypoxic conditions. SM

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Luxury

Chanel launches Vitalumière Loose Powder Foundation For the first time, the Chanel Makeup Creation Studio has developed a loose powder foundation and a mini Kabuki brush, united in a case that takes care of providing you with a naturally luminous and even complexion. The powder offers the finish of a fluid foundation for a natural second-skin effect without a hint of thickness. The formula of the powder is a combination of two specific powders whose shape allows them to adhere to the skin

surface with incredible affinity. Enriched with a softening Canola oil derivative, the powder delivers a sensation of comfort and protection all day long. The combination of soft focus powders, uniting small polymer microbeads and two different sizes of cellulose microbeads, fills surface irregularities and instantly smoothes the skin. Imperfections are diminished and the skin texture is evened out (+55%) for a 100% natural effect.

Four Seasons Hotel Bangkok announces the 15th annual World Gourmet Festival

Making each edition grander than before, Four Seasons Hotel Bangkok is all set with this year’s World Gourmet Festival as the full line-up of chefs is confirmed. Seven master chefs from six different countries will take part in the festival scheduled to take place from September 1 to 7, 2014 at Four Seasons Hotel Bangkok. It’s time to sample some food art from exquisite crafters like Chef Akrame Benallal (Akrame, Paris); Chef Paolo Casagrande (Lasarte Restaurante, Barcelona), Chef Thierry Dufroux (Bistrot Belhara, Paris), Chef João Rodrigues (Feitoria, Lisbon), Chef Hideaki Sato (Tenku RyuGin, Hong Kong), Chef James Syhabout (Commis,

Oakland, California), and Chef James Viles (Biota Dining, Bowral, NSW, Australia). The hotel has also devised a World Gourmet Festival package for those who want to stay in the thick of it as they breathe in the delicacies all throughout! It includes overnight accommodations at the Hotel, access to their Executive Club and a featured dinner of your choice (for two) once during your stay. As before, the World Gourmet Festival is supporting HRH Princess Soamsawali's Save A Child's Life from AIDS Project under the auspices of the Thai Red Cross Society.

Two new models join IWC Schaffhausen’s Ingenieur watch line IWC Schaffhausen has unveiled two magnificent new additions to the Ingenieur watch family. As the official Engineering Partner of the Mercedes AMG Petronas Formula One team, the Swiss watch manufacturer has created new works of haute horlogerie. The Ingenieur Automatic Carbon Performance Ceramic is a thoroughbred sports watch with a case inspired by materials used in Formula One motor racing, while the Ingenieur Dual Time, a powerful-looking timepiece in a stainless-steel case, has a more classic appearance.

IWC Schaffhausen has utilized the unique properties of carbon fibre, which is twice as strong as steel, but only a fifth of the weight, and integrated it into the construction of its watch cases. The Ingenieur Automatic Carbon Performance Ceramic also has a mirror-finished ceramic bezel. The middle section of the case, which is held together by five screws, is manufactured according to the same principle as the core features of a racing car. The watch’s dial is also made of carbon fibre. SEASONAL MAGAZINE 125

Luxury

Bvlgari launches the Omnia Indian Garnet fragrance

Inspired by their jewelry and the magic of India, Bvlgari has launched the Omnia Indian Garnet fragrance, created around the unique mandarin garnet. The latest jewel-perfume in the Omnia collection is a tribute to the breathtaking beauty of India, which inspires through a kaleidoscope of colours, textures and aromas, while indulging wholeheartedly in the pleasure of fragrances and precious stones. The mandarin garnet, thus, became the central theme in a new olfactory production. The mandarin garnet holds a special place in Bvlgari’s universe. It is a gemmological exception that can be as rare as the most precious of emeralds. Its brilliance – due to a very high level of refraction – and its transparency are extraordinary.

The Leela Palace New Delhi introduces the Tea Rhapsody

NYC Restaurant Week Summer 2014 to take place July 21–August 15 NYC & Company, New York City’s official marketing, tourism and partnership organization, announced that NYC Restaurant Week Summer 2014 will take place July 21–August 15, 2014. The event offers four weeks of dining deals at top New York City restaurants Mondays through Fridays, with Saturdays excluded and Sundays optional. Diners can enjoy three-course prix-fixe lunches for $25 and three-course prix-fixe dinners for $38 (excluding beverages, gratuities and taxes).

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A tribute to India’s aromas and distinct local specialties, The Leela Palace New Delhi has introduced a Tea Rhapsody at The Qube. Culinary works come alive with a perfect juxtaposition of intricate henna art inspired cakes and pastries along with specialties from India and the old continent. The menu celebrates the time-honoured and richly beautiful henna art that is associated with weddings and special occasions with dedicated selection of cakes, macaroons and cookies adorned with intricate and dainty henna patterns. Accompanying this is the selection of Indian sweets and savouries that includes many favourites like Kesari Boondi Ladoo, Balu Sahi, Kala Jamun, Methi Matthi, Aloo Bonda, Mirch Vada, Dhokla, Samosas, and more. The selection of petite sandwiches permeates Indian flavours like Tandoori Chicken and Tandoori Paneer. Western delights compliment the experience with an array of cakes, jams, desserts and scones, and the hard to miss Mango Minestrone soup.

MAC launches Brow Set Waterproof Collection MAC has launched a new collection of products that elevates the brow in waterproof formulas that are sweat-proof, smudge-free and humidity-resistant. Waterproof Brow Set grooms, defines and strokes brows into shape, naturally shading to create subtle or dramatic looks in seven new hues. The long-wearing, waterproof Fluidline Brow Gelcreme fills, lengthens and shapes in rich brunette, soft taupe and golden brown. Finish the look with Zoom Waterfast Lash, Splashproof Lash or False Lashes Waterproof and your brows are gorgeous to go. Choose from shades like blonde soft muted beige-taupe, dirty blonde, red chestnut gold brown with gold shimmer, brunette muted mid-tone grey brown, brunette muted blackish brown and brown ebony asphalt black.

Clinique introduces New Clinique for Men Clinique, an authority in skin care and leading dermatological brand, has launched the NEW Clinique for Men, which marries dermatological knowhow with common sense to bring men a curated portfolio of specialized skin care including cleansing, moisturizing, exfoliating, shaving, and targeted grooming products. Clinique makes it easy for men to find the right products for their grooming needs with the Clinique Skin Care Diagnostic tool. Using software exclusive to Clinique on the Apple iPad, this state-of-the art diagnostic tool assists in identifying men’s skin type, and processes numerous product combinations to precisely address their personal skin care needs. The tool also allows men to browse by category or scan a product barcode to find out more. At the end of the intuitive analysis, men may choose to print a list of custom-fit product recommendations including order of use directions, or receive an email with the information.

Salvatore Ferragamo launches the Signorina Eleganza fragrance Salvatore Ferragamo has launched Signorina Eleganza, a luxurious fragrance, which celebrates feminine grace and seduction. The perfume includes fresh head notes of grapefruit and pear, which give a vivacious and stimulating introduction. Almond powder and golden osmanthus petals create a delicate yet intense heart, adding a touch of indulgent luxury. The base notes of patchouli and white leather create a dry-down effect that leaves a lingering scent on the skin. The packaging in nude beige palette conveys a delicate and refined charm. The Eleganza logo in embossed gold adds an extra touch of craftsmanship. The precious golden base engraved with the logo in relief gives the bottle a magnificent appearance while the famous gros grain Vara bow comes in two shades of beige.

Vacheron Constantin hosts an exhibition of historical pieces Offering an authentic journey across continents, Vacheron Constantin is hosting a themed exhibition dedicated to the history of horological adornments. It showcases around 40 historical models – chosen from the 1,200 composing the private collection of the Manufacture – illustrating various major artistic movements. On the first floor of Maison Vacheron Constantin, on Quai de l’Ile in Geneva, display windows are organised around four different universes: the East, Greece, Europe, and finally the open worked architecture of the late 19th century. Wristwatches, but above all pocket watches, highlight beauty and finesse of that era. While the various enamelling techniques play a role worthy of the complexity involved in applying them, engraving, guillochage, gemsetting and glyptic art are also well represented. The visit begins in the East, with India and a delicate champlevé enamel pocket watch dating from 1831, inspired by the flamboyant style of an enamelled floral tapestry. SEASONAL MAGAZINE 127

Luxury Jaguar to build F-Type Project 7 F-T ype Pr ojec F-Type Projec ojectt 7, the la lattest model aguar’s ac claimed F-T ype acclaimed F-Type in JJaguar’s spor ar rrange ange ec en tly made it sportts ccar ange,, rrec ecen ently itss debut a 14 Goodw ood att the 20 2014 Goodwood Festiv al o stival off Speed. F-T ype Pr ojec st F-Type Projec ojectt 7 is the fir first e vvehicle om Jaguar per perfformanc ormance from ehicle fr Jaguar LLand and R over’s Special Ro Oper ations tteam, eam, and will be Opera pr oduc ed in a limit ed-edition run produc oduced limited-edition of up tto o 250 unit s. It tiv e units. Itss distinc distinctiv tive body pa e tto o one o payys tribut tribute off the most ffamous amous and ic onic rracing acing iconic Jaguar s: the thr ee-time LLe e Mans aguars: three-time winning D-t ype 14 is D-type ype,, which in 20 2014 er sar celebr ating it elebra itss 60th anniv anniver ersar saryy year ype Pr ojec ear.. F-T F-Type Projec ojectt 7’s name pa o JJaguar’s aguar’s se payys homage tto sevven outright LLe e Mans wins. F-T ype F-Type Pr ojec wer ccome ome om Projec ojectt 7’s po pow omess fr from Jaguar’s 5.0-litr e super char ged V8 5.0-litre superchar charged

engine w in 575PS/680Nm fform, orm, engine,, no now enabling the all-aluminium-bodied ccar ar to achie celer ation fr om 0achievve ac acc elera from 60mph in 3.8-sec onds (0-100km/h in 3.8-seconds 3.9-sec onds) and an elec tr onic ally3.9-seconds) electr tronic onicallylimit ed ttop op speed o limited off 186mph (300km/h). F-T YPE Pr ojec F-TYPE Projec ojectt 7 is fully road-legal with a rremo emo oo emovvable rroo ooff.

YSL launches Manifesto and Manifesto L’Elixir fragrances Luxury brand YSL is launching two new feminine fragrances which celebrate a woman’s attitude and beauty. In the image of the women who wear it, Manifesto reveals a sleek silhouette and a strong personality in which jasmine is the thread in fusion with white corollas. The green, translucent notes of lily of the valley add their springtime happiness to the allure. A bright, light ribbon of blackcurrant entwines with a tangy, fruity accent. Among the essences of cedar core and sandalwood, an accord of sensual woods envelops it like a second skin and releases the mellow luminosity of vanilla and tonka bean. Like a prism catching the light in a play of lines and reflections, the Manifesto bottle resembles a multi-faceted, amethystcolored jewel, associated at Yves Saint Laurent with ultimate seduction and bewitching passion. Paired by Yves Saint Laurent with fuchsia in the 1960s for a shock of monochromes in the pop spirit, it is a powerful violet shade. Manifesto L’Elixir is a Florential white flower woody fragrance. It has 128 SEASONAL MAGAZINE

the tangy, fresh crispness of bergamot and mandarin top notes, echoing a sensual heart of jasmine sambac absolute, heliotrope blossoms accord and tuberose absolute that extends the velvety base notes of cashmeran, vanilla bean and ambroxan. A brighter and stronger version of the Manifesto bottle, Manifesto L’Elixir sparkles even more powerfully!

La Martina launches in India India has opened its doors to La Martina, a luxury brand based in Buenos Aires, Argentina, with the opening of a store at DLF Emporio Mall, New Delhi. The 1,800 sq feet standalone store will offer a comprehensive range of aesthetically tailored clothing, eyewear, technical equipment, leather goods, fragrances and accessories by the brand. Ms. Eliana Koulas, Director of Luxus Retail and the Indian Franchisee for La Martina says, “At La Martina, we approach our business in

Luxury Connect launches India’s first and only luxury Business School Luxury Connect, a boutique consulting organization based in India, has recently launched India’s first and only ‘Luxury B School’. Designed on a unique ‘Boutique School platform ’, the campus has been created in the Gurgoan region of Delhi NCR. Spread over 10,000 sq ft, the same way that a high-goal player approaches the challenge of polo: with passion, devotion and total commitment to excellence. Our products go well with New Delhi’s image as a luxury destination. La Martina has strong association with vacations and leisure. It, therefore, makes great business sense for La Martina to be at the DLF Emporio Mall.” Customers at the store are assisted in building a personalized wardrobe including the finest made-to-measure and custom made clothing. All elements integrate beautifully to create the La Martina store and to elevate the experience of selecting clothes. La Martina’s new retail store in New Delhi is a beautiful and richly decorated venue where customers can browse and shop in an ideal living-room environment. The La Martina store features black and white marbled floor tiles, vintage chandeliers contemporized through the use of black lampshades and antique furniture.

this wi fi enabled campus boasts of state of the art learning facilities with luxurious classrooms, lectureshops, library, resource centre, language and personality development facilities. Faculty includes Indian and international industry experts, practicing veterans and educationists. The school has collaborated with International University of Monaco and has twinning programs in place where LCBS students spend one semester at the IUM campus. Specially designed programs would guide students towards various fields of luxury sectors. Management programs include full time student education leading to a ‘Post Graduate Diploma in Luxury Management (PGDLM)’. Those wanting to specialise in the art of luxury customer handling, could enroll into the ‘Customer Service & Experience Culture (CSEC)’ diploma program. Executive education section has also been expanded to offer an online program for busy or remote based executives. This one month ‘LBM – OL’ program is a condensed capsule model of the existing six month ‘Executive Diploma in Luxury Management (EDLM)’. SEASONAL MAGAZINE 129

Luxury

Vacheron Constantin launches Métiers d’Art Hommage à l’Art de la Danse Vacheron Constantin has unveiled three new one-of-a-kind additions to its Métiersd’Art Hommage à l’Art de la Danse collection, based on the highlights of a ballerina’s daily life: learning, training and performance. These creations revisit the ancestral art of Grand Feugrisaille enamelling to highlight the art of classical ballet by reinterpreting the works of Edgar Degas. These three new Métiersd’Art Hommage à l’Art de la Danse watches crystallise the magic and subtle alchemy between three arts: that of the ballerina, the enameller, and the watchmaker. Within a white gold frame, Degas’ ballerinas glide

gracefully beneath the ever-dancing hands. The master enamel artist drew inspiration from three paintings by the master and represent three highlights in the life of a ballerina: dance school with Dancers Practicing at the Barre, dated 1877 and on show in the Metropolitan Museum of Art (New York, USA); the backstage of a dress rehearsal with Dancers near a Set, dated 1888 and belonging to a private collection; and the pinnacle of a ballerina’s life with Two Dancers Entering the Stage, painted circa 1877-1878 and exhibited at the Fogg Art Museum (Cambridge, USA).

Zoya launches the Fire collection Zoya, a diamond boutique from the house of TATA, has launched its Fire Collection, inspired by, as the names says, fire. The collection enraptures different aspects of fire giving it an artistic turn. Inspired by the subtle nuances of dancing fire tendrils, breathtaking colours and shapes of flames that reflect in the jewellery design, the pieces are embellished with bright sapphires, radiant gold and delicate diamonds. A necklace crafted in fiery yellow gold, studded with diamonds and yellow and orange sapphires brings to mind the dance of the flames. A diamond pendant studded with black onyx creates an unforgettable statement while a ring promises the power and purity of fire.

Gucci presents its Cruise 2015 collection for women Gucci’s Cruise 2015 collection explores sheer beauty and inner strength with optical and tactile illusions. Designs reveal repurposed materials, trompel'œil effects, and a new abstraction of the House’s iconic print. The redefined Flora pattern embodies the collection’s feminine plurality. Nocturnal blossoms – each alluding to a unique Roman story – revolve around the moonflower and reach their height at night, dawn or dusk. The silhouette is boyish yet graceful with linear graphics. Defining the lines of the body, the ladylike chemisier dress features a knee-length silhouette that gives way to pleats. Outerwear essentials are in the shape of the deconstructed trench, the nautical peacoat, the double-breasted overcoat, and exotic jackets. A low waist outlines new bermuda shorts and Sixties-style pants, while oversized sailor-inspired trousers contrast with fitted blazers and feminine knitwear. Detailing includes python collars and 130 SEASONAL MAGAZINE

marine buttons. Meanwhile, a new foulard punctuates the neckline – in unexpected nappa, as soft as silk, to layer and knot as a scarf. Pearl, soft pink, chamomile, citrus yellow, mimosa, eucalyptus green, and shades of blue alongside neutrals – almond, rosy beige, camel, black – and orange feature in the colour palette. Classic materials combine with technical treatments. The peacoat is in either wool or wool crepe bonded with jersey. In double wool, the trench becomes as supple as a robe. Denim takes on different finishes to become the stonewashed vintage-style shirt, the lightweight indigo sleeveless dress, and distressed dockside trousers. Threedimensional embroideries embellish the stretch jean skirt or the boat-neck cashmere sweater. Ultra-feminine, plongé leather is used for a chemisier dress, boasting an unlined effect, or the above-the-knee skirt cinched at the waist with a nappa scarf.