Passline business magazine March 31 - April 30 ,2014

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he life of Andrew Nettikadan, founder of the Nettikadan Group of Companies, is an amalgam of courage, grit and determination. He bought up the loss-laden bookshop of his uncle half a century ago and not only made it profitable and popular as one of Kerala’s but the country’s bestknown publishers of school textbooks.

He now governs an empire. His golden rule: Never sit idle with your enterprise; attempt to do something and go on experimenting; you cannot win in life without taking risks. “My publishing company, Nettikadan Corporation, now prints and sells 45 lakh-50 lakh textbooks a year and owns more than 240 titles. We have today 3,000 schools following our textbooks not just in Kerala but in Tamil Nadu, parts of Karnataka particularly in Bangalore and in the Gulf,” muses Andrew Nettikadan from his corporate headquarters on Kochi’s Karakkat Road.

Many people assume that publishing textbooks is an easy sell. But the task of selling textbooks is a tricky business, in part because you are selling a product which most people do not really need and in part you have to convince those buying them why yours should be bought. That is why Nettikadan Corporation’s performance is so remarkable. Few firms are as canny at persuading schools to buy their books.

Selling textbooks is a subtle art: to do it well, you have to tap into something bigger, wider, more abstract than the product itself.

So who is this man who could scale such great heights in a field which, he says, he entered ‘accidentally’? To understand Andrew and his quirks, a leaf of his history is turned over. It was in 1958, when he was barely 21 years of age, that his uncle P Thomason ‘invited’ Andrew to Kochi where Thomason, himself a writer of eminence in English, was running a bookshop, Joseph Thomasons & Co. Andrew was then spending his days at Meloor, a sleepy village near the bank of the Chalakudy river, learning typewriting after his SSLC exam.

A few months after Andrew relocated to Kochi and started helping Thomason in business the latter wanted to call it a day. His business was not generating enough revenue, one reason why he wanted to quit. Would Andrew take control of the business and relieve him? Andrew courageously accepted the challenge. He was gradually coming into the world of the printed word.

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March 31 - April 30, 2014

Thomason had a working partner Joseph who longed to be associated with Nettikadan. But Andrew declined his offer and wanted to go alone.

Joseph Thomasons & Co sold its business paraphernalia for Rs 13,000 plus Rs 1,500 for furniture, totalling Rs 14,500, with an offer to pay him Rs 75 a month and the capital on any day at his will and pleasure.

A lone fighter in the book business and a family crusader of tours, Andrew started his own venture with nobody’s support or a middleman at zero working capital. He proved he could spot and bag a commercial opportunity as easily as a deer. The first thing he did was to replace the kinds of books that used to be stocked there, most of them philosophy, travel, foreign books and other ‘serious’ ones, with books procured from such publishers as Vidyarthimithram and Assisi. The books from Assisi were fast-moving and were bought on credit as he hardly had any money with him. The companies used to give him 30% as commission which enabled him to rotate money for a longer period and could use it as initial capital. He also sold books published

by North Indian firms.

In 1961 he contacted schools to publish books for them and in 1962 got Government sanction for distributing its books which enabled him to push other books along with Government school books. During 1962-63, remembers Andrew, he published two dramas and a few English books too.

Though the firm prospered, Nettikadan was not a bookworm just stocking and selling books. He was impatient for doing something appealing and came to believe that for him to prosper further in business he had to operate like an entrepreneur.

The bookshop was then situated on South Railway Station Road. Sitting there he used to watch children going to the nearby Girls High School. He thought of doing something for them.

The idea of printing textbooks struck him. Taking the help of a teacher who was a relative of his Nettikadan started getting books for classes 2, 3 and 4 printed. The books conformed to the syllabus prescribed by the Government. Later Nettikadan started publishing books for first standard students also.

During those days the Government used to bring out only Malayalam books. Andrew, with the help of some

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teachers, then had books on other subjects like science, social science and mathematics printed. He paid the teachers who authored the books and paid them without credit. It enabled Nettikadan to safeguard each title from piracy.

With his decision to fully concentrate on publishing textbooks, possibilities began appearing before him. The trust

even nuns as office-bearers and himself as treasurer, aimed at setting question papers, helped further promote the business and enabled his company to compete successfully with North Indian publishers. The KPSEB Trust started competitive exams for the KG and LP students in 1964. The entire activities were managed by Nettikadan himself without raising an

The mantle-bearers

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o a question who will replace him, Andrew says that he has been at the helm of affairs of the Nettikadan business for more than 50 years continuously. “My sons Varghese and Thomas are rendering their service to bring the venture to what it is now. They are Directors of the group and know the pros and cons of the business as they are habitually engaged in the day-to-day dealings of the business. Hence both are capable of ruling the roost and have established themselves as able administrators and coordinators. They too inhale and exhale the business ideas as their father does, but, of course with modern tips.”

Varghese is a computer engineer and often suggests to his father that the business go out of the way of printed books and switch to e-books. He has made a vain attempt to substantiate his suggestion and realized to his dismay that this mode of business is yet to catch up with Indians, especially with Keralites. `` There are a few publications in our country doing this kind of business and they are doing it fairly well, but our clients are not ready to spend extra money on it. Our tryst with the e-book format ended on a sad note as the response from our school customers was very poor. Schools may vouch CDs and other online material with the books they buy from us as complimentary,” says Varghese. According to him, R and D and production costs are very high. In 1998 the company launched interactive CDs and VCDs but the demand was far below expectations. Now it is giving one CD each to schools which buy books from it, he says. Varghese has recently sidestepped into the real estate business at Panampilly Nagar in Kochi.

VargheseNettikadan

Thomas was doing business in Doha, Qatar, and now has settled down in Kochi engaged in Nettikadan Corporation’s business and visits foreign countries in connection with the business. He is a BBA and concentrates more on distribution and operates from the bookstore built near the Nettikadan Corporation office and his residence.

Varghese and Thomas have visited the US and the UK and found children there using laptops. Still, their curriculum is dependent on the physical form of books. “If this is the situation in the developed countries we think it will take years to transform the education system to e-learning in our country. Our children are `computer and internet worms’ but 99% of them use these for entertainment and fun, not for studies,” they lament.

he formed, Kerala Private School Examination Board Trust (KPSE), with teachers, eminent personalities and

iota of doubt bearing a pseudonym, ANSON. With the cooperation of his teacher friends (today Nettikadan has

links with more than 200 teachers) the trust turned out to be a big success and started functioning very actively from

Thomas Nettikadan

1964. Succumbing to pressure from his friends and well-wishers, Andrew had to become the Secretary of the

Andrew Nettikadan with family March 31 31 -- April April 30, 30, 2014 2014 March

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4 4 Junior Reader brought out in those days was an all-time hit.

Lakhs of copies of the book were printed.

Walking through his backyard trust. Besides conducting competitive exams for school students throughout Kerala simultaneously, it also conducted educational and entertainment programmes continuously from 1964 to 1976. Centred on schools and students, it was destined to change the very face of both his company and he himself.

Another path-breaking step he initiated is the preparation of syllabus to schools in six sets out of which the

organizations. Orders started pouring in for guides, course textbooks and KG texts. These were prepared and published for both Malayalam and English-medium students. Extremely cordial relations with parents were one of the reasons for his success, Andrew feels.

A stickler for principles, Andrew always insisted on giving prominence to the interests of students and wanted that whatever publication he was bringing

Andrew had also tried his hand at construction. As early as in 1991 he had a flat complex built at Edappally in Kochi. Before that he had started Antosons Sports Goods (ANSON) which was purely meant for encouraging the sports talents of students. This however had to be closed in 1992.

The closure of this as also the real estate business was meant to enable him to concentrate exclusively on the education field as its promoter.

A point Andrew makes is the way the Nettikadan Group works. It operates under a set of self-imposed financial targets that limit debt to almost nil.

“This may appear conservative, but the idea is to keep the company out of the capital markets and in control of its destiny. I don’t like to go to the banks. I want to be independent,” says

Andrew. This aversion to debt is just one reason Andrew can be described as the country’s most unusual publishing giant.

Surprisingly for an empire, which distributes lakhs of printed books, from KG classes to LP classes in many parts, there are no distributors or agents for Nettikadan. Books are sent to schools directly by the company. There is not even a branch. The only ‘agent’, if he can be called one, is a man who stays at Sivakasi in Tamil Nadu, who is an employee of Nettikadan, where most of the books are printed, to oversee the printing operations. Some printing is also done in Mumbai now.

Reminiscing about the past, Andrew says that 30 or 40 years ago most of the schools were good paymasters.

“They recognized and valued our efforts. We used to give them a month’s credit facility, which we continue to this day. They were prompt in payment.

But, I regret to say, things are not the same today.” In an industry populated by big players from the North, Nettikadan is in a league of his own. Curiously, he had never run a business, not least the publishing business, when he entered one: but then he was too young for it. That made him not only the youngest one in the field but also the least experienced. But soon he became one of the best-known and most-respected publishers.

Andrew has proved his mettle in the role of a writer too. He has penned two

Fr Abel: Founder-President

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question papers are prepared with inclusion of registration number in question papers to identify the schools and six exams are conducted, a practice the Government itself followed later.

He used to distribute question papers to 2,500 schools by his own effort of manual labour.

Then came Nettikadan Corporation’s decision to print and publish Malayalam and English books for KG classes in accordance with the syllabuses (both for ICSE and CBSE), which were prepared in association with teachers’

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out should be useful to them. No wonder his books bear the stamp of the imagination of students. The books have full of pictures of flowers, toys and birds on the covers and with numbering of lessons inside (LESSON—1A, 2 B…). It was a novelty in those days.

This, he feels, enhances their value.

The books published under the banners of Jetco, Nettikadan (Nettsway) and Sparkle have achieved the status of brands. They were in sharp contrast to those which used to be brought earlier from North India. Nettikadan’s

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r Abel, the icon of music and arts in the realm of religion, founded a `temple of fine arts’, Kalabhavan, for the lovers of stage and screen. Kalabhavan is a globally renowned insti- Andrew Nettikadan tution and many singers and artists of President Fr Abel Malayalam silver screen were toddlers of this institution. Andrew Nettikadan had associated with the thespian priest of art and religion for nearly 30 years as the treasurer of the fine arts cynosure. After the demise of Fr Abel the management of Kalabhavan was in a shambles as the inventories and instruments were whisked away by its ex-inmates.

As Nettikadan is an ardent lover of music and arts he restored the status quo of the institution. He spent money and applied professional management tactics. Thus, Kalabhavan regained its past glory and all institutions under it are running smoothly. Presently he is the President of the Kalabhavan. `` We believe that Fr Abel’s spiritual presence will always be with us and Kalabhavan pays homage to him with folded hands,” Andrew says.

Under his stewardship Kalabhavan has launched a website www.kalabhavan.org He has been Chairman of the Kalabhavan Residential School for half a decade. It is considered as a rendezvous of NRIs who always want to be at the helm of affairs. He was involved in it as a square peg in a round hole. Disgruntled he relinquished the office.

During his relentless and successful business operations he had his setbacks too. Death defied him in the form of a recovery when once both of his kidneys failed. Blissfully, the treatment not only restored his kidney function well and his bald forehead ironically started to have lustrous growth of hair.

5 5 from North Indian publishers, Andrew has stood his ground to this day—yes, for half a century. What is his secret? “Honesty, belief in God and promptness,” prompt comes his reply.

“I leave nothing to chance and very little to the imagination.” “My confidence,” recalls Nettikadan, “was unlimited.”

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Positions held

sually people have holiday travels but the septuagenarian Andrew has his days off from travel which he spends on other activities inland. He is socially committed and is a `Lion’ as the President (elect) of Lions Club of Cochin Greater. Besides being the Chairman and Managing Director of Nettikadan Group and Nettikadan Corporation, he is the Proprietor of Joseph Thomasons Co; Secretary of Kerala Private School Exam Board Trust; President, Lions Club of Cochin Greater 2014-2015, Adviser and Member of Lions Club International Dist 318 C, Ln Andrew Nettikadan MF; (He became a member of the Lions Club at the late age of 70, a record which brought him the Melvin Jones fellowship); Executive Director, Malayalee Relators Indian Ltd Cochin; President of Kalabhavan-Kalabhavan Studios Ltd; former Chairman of Kalabhavan Residential School; and Managing Trustee, Andrew Nettikadan and Unniamma Foundation (a charitable trust) which donates for the cause of kidney, dialysis and cancer patients and intends to make a corpus of Rs a Rs 1-crore charitable institution.

Andrew is a life member of the Lotus Club, Ernakulam; Senior Christian Association, Cochin; Indian Medical Association, Lagoon Club, Cochin; Catholic Centre, Cochin; Lions Hospital, Sasthamugal, Cochin; and Catholic Church, Rome.

He is also a member of Anand Bazar Owners Association, Cochin; Karakkamuri Residents Association, Cochin; and Indira Gandhi Cooperative Hospital, Cochin. books, one on Jesus Christ, Nazarethile Yesu, specially meant for children, and another, Memories of Our Travel Abroad, on his experiences as a globe-trotter. In this book he has unfolded the different vistas of the quaint cultures and lives, wonders and marvels in the nooks and crannies of the world. The books have been ac-

claimed by all people in society.

Now what next? “My efforts do not end here. Avenues continue to open before us. And many more things remain to be done. Changes are taking place in my field, as in other fields. They are needed for further growth,” says he.

At his age, Nettikadan has not lost a bit of his will to dominate. Despite challenges, the severest of them

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man who has constantly looked for daring ways to prove himself, Andrew, at 73, went in February 2010 on a tour of Antarctica. His adventure may be one of the toughest footraces on earth and the coolest on the penguins’ plateau. As the veteran traveller puts it, “I am a bit of an adventurer, and I saw something different in my itinerary. Please remember that Antarctica is a region visited by fewer than a hundred thousand people from all over the world. I feel elated that I belong to this rare class.”

But then his love for travel started at an early age. He has so far undertaken 60 trips to almost all the continents, he says proudly. ``By the grace of God we were able to see and enjoy all the wonders of seven continents in a time span of 20 years—three visits to North American countries, one to South American, four to European, seven to Asian, two to African countries and one to Australia… During most of my travels I take my family along because I believe that each visit will enrich my children and grandchildren with new knowledge and experience.”

Hard work was his ethic.

It was an 8.30 am to 8.30 pm work schedule for him until some time ago though he finds more time for rest now having handed over many responsibilities to his sons, Varghese and Thomas, two directors of the group. “But hard work alone is not enough, it sweats down to luck,” he says of his success. “Circumstances could have been otherwise.”

Among his four children, sons Varghese and Thomas work for the company.

Two daughters, Livi and Cini, are happily married.

Livi is the wife of Dr Kunjumon, a reputed cardiologist. Cini’s husband is Dr Joseph Francis, a medical college professor.

On the side of the staircase to the first floor of his mansion the visitors’ eyes fall on the photographs of 21 members of his family (in pairs) and his children and children’s children (grandchildren— in singles) numbering 11 in seniority pattern from top to bottom hung on the wall. With pleasure he tells

An ardent traveller

the names of the grandchildren—Kirti, Shilpa, Sruthi, Anto, Ann, Maria, Rose, Andrew, Sara, Anna and Andrew.

The eldest grandchild Kirti has already been married off to Dr Jose Paikada..

“Let God bless you and your gracious wife with luck and long life to witness the marriages of your great grandchild,” the PASSLINE team wishes Nettikadan.

On the floor, right down the staircase, the black and boneless fishes swish in the oval water glass pond as if to welcome the guests. The family had brought them as fingerlings (baby fish) from Africa.

Asked what the virtues they find in their dad are, Livi and Cini have almost the same answer: he is disciplined and pious, and above all a family man who is very fond of family get-togethers on Sundays. On Fridays they (the entire family) dine out and go to films; on Saturdays they go shopping and on Sundays to church before the whole family assembly at home. During Onam and Christmas vacations the family is out on a tour of foreign countries.

The first such tour was in 1966—to Singapore and Hong Kong. This schedule has continued for decades. Andrew also insists on the family’s presence at the church five minutes earlier for the Sunday Mass.

Andrew married Unniamma, who belongs to a business family of Konikkara in Thrissur, in 1965. Still very active, she helps Andrew in controlling office finance. She also pays occasional visits to the office and interacts with the staff. There are about 30 people working for the group, besides 12 marketing men. Andrew insists that his staff set apart a portion of their emoluments for savings as he is a self-made man and his experience has taught him how savings help in one’s life. He reminds them that from his initial days’ salary of Rs 50 he used to save Rs 5 and continued the habit.

“Unniamma’s help in my life has been invaluable,” acknowledges Andrew. ``It is amazing how we have been able to achieve so much in life,” she says. ``Often her words had worked as a catalyst, especially in matters related to our real estate business, which brought us some fortunes,” commends Andrew Though hale and hearty even at 76, Andrew sometimes thinks of handing over his charge of the 12,500 sq ft book store (perhaps the first in the world) to his successors and spending the rest of his life at home. Thomas looks after the distribution wing of the books and Andrew concentrates on the production division of the business.

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INBOX

AAP fabric holed

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he Aam Aadmi Party (AAP) led by Arvind Kejriwal became the hope and spirit of the people when it trounced the ruling party, the Congress, which was leading a hackneyed and corporate-fed government led

by Sheila Dikshit tutored by Manmohan Singh, Sonia Gandhi and Rahul Gandhi. But the dream of the people was shattered by the resignation of Kejriwal as Chief Minister. The people had considered AAP as the alternative which could solve the problems plaguing the country and its people.

Kejriwal should have held on to power in Delhi and proved an exemplary example for other states and the whole nation. By ditching power AAP created a perforation in its fabric. If it had continued in power and turned out good governance it would have become an ideal national entity soon.

Mahatma Gandhi was the lone crusader in India’s history who led the masses through his method of non-violence and satyagraha without wielding power. But that was for attaining Independence. In order to rule a state or country one should have power and pelf and experience. AAP would have acquired these by holding on to power in Delhi. Without power it is as good as being a toothless lion.

The currencies of a country reflect the decency and decorum of the citizens of a nation and are part of its culture. So instead of issuing a notification once in a while and extending or withdrawing it the RBI may release some ads frequently by making public aware of the dignity of the currency a person handles. One should take as much care to keep currency notes clean as one should to keep one’s dress clean.

Moreover, there should be a norm to exchange dirty, soggy, holed or mutilated notes to be exchanged at all bank counters till a deadline fixed by the regulator for creating a clean currency culture.

Prince Charles, Dubai

Nonetheless, the principles and policies of the party are still acceptable to laymen and it can make a dent in the vote bank of other coalitions in the forthcoming general elections. In a decade or so, AAP can plug the loopholes to form a government that can rule India according to the wishes and aspirations of the people.

C J Varghese, Thrissur

Currency culture

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he Reserve Bank of India (RBI) has extended the date of exchanging the currency notes printed before 2005 till January 1, 2015. Before this there was another notification that banks would not accept notes if something was written or scribbled on them. The last date was fixed as January 2014. It seems no steps were initiated on this directive as such dirty notes are still seen in circulation. Maybe India is the only country where such currencies are in circulation. The foreign currencies that come under our notice are always neat and rigid.

NaMo takes his hat off to Ambani Christy Fernandez a surprise H T

uman beings are generally ambitious. Their greatest ambition is to be he CPM choice of a national-level bureaucrat who was at the citadel of recognized and respected. This urge leads them into the forefront in power in Delhi as an independent candidate in the Ernakulam Lok Sabha their working arenas and to be rich or the richest. India is home to the fifth larg- constituency has sprung a surprise not only to the voters there but to the cadres est group of billionaires in the world and Mukesh Ambani, Chairman of Reliance of Left parties also. It may also be a surprise to Christy Industries Ltd (RIL), is the country’s richest man with a personal fortune of $18 Fernandez, the 1973-batch IAS officer of Gujarat cadre himself, because the billion. Ambani is ranked 41st in the list that is topped by Bill Gates, whose perred party invite came to him as a bolt from the blue since he is a complete novsonal net worth stands at a whopping $68 billion. ice. A possible victory of Christy, a thorough-bred in bureaucratic polInterestingly, India has a larger number of super-rich individuals than Gemaitics as Secretary to former Presiny, Switzerland, France and Japan. The combined wealth of Indian billionaires dent Pratibha Patil and Secretary (Lakshmi Mittal, Dilip Sanghvi (Sun Pharma), Azim Premji, Pallonji Mistry (Tata in various departments for almost Sons) and S P Hinduja) comes to a staggering $360 billion. India and Russia are a decade, and the elevation of growing fast in terms of billionaires. Mumbai alone has 33.

Narendra Modi as Prime Minister However these billionaires attract severe criticism from many people, espewill surely strengthen the rapport cially politicians, who accuse them of amassing wealth through dubious means. between the two.

The last few weeks have seen Aam Aadmi Party (AAP) leader Arvind Kejriwal Christy’s fight in Ernakulam unleashing a tirade against Ambani and RIL. Ambani is now treated by the Conagainst his friend and proponent of the same Latin community to which he and gress as the blue-eyed boy of Gujarat Chief Minister Narendra Modi, the BJP’s incumbent Union Minister K V Thomas, belong, will be intense as both are familprime ministerial candidate. The faceoff between the Congress and RIL and Keiar faces in the constituency as also in Delhi’s political and bureaucratic circles jriwal’s diatribe against Ambani will reflect in the corporate funding of political and either man’s victory can wield influence there. parties during the general elections. But the fact is that Ambani is not the only corporate heavyweight that political parties bank on.

Christy is a native of Clappana in Kollam district. As in Kochi, a majority of his Latin Catholic community there are fishermen.

The standoff between the Congress and the AAP will help the BJP to come He has nearly two decades of attachment to Kochi as a resident there. closer to Ambani which will turn the outcome of the poll result in favour of Narendra Modi (NaMo)

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March 31 - April 30, 2014

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From the Editor

What to inherit is the question I

Editor & Publisher

Varghese Paul Kochi RG Gireesh 9544629775 Kozhikode Vineeth Mukundan 8714986177

Chennai Augustine Joseph Ph: 09381000534 Bangalore Jayachandran 0988699331 Manager-Marketing Sajan K 09895344485

Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India.

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ndia, the largest democracy in the world, has cleared its decks for elections this month.

Even after the 67th Independence, India has witnessed 15 Lok Sabha elections so far and, out of that, the oldest political party in the country – Congress-- has emerged victorious most of the time. To be exact, intermitently 54 long years Congress has been ruling the nation. Why I narrate the above details is that recently a scribe has asked our Harvardlearned Finance Minister that what he would inherit to his successor. Mr Chidambaram promptly replied that he is going to inherit an improved economy, a more stable economy and an economy that is growing. Before we take his reply in its face value, we should have to analyze the ground realities and current economic scenario of the country.

India’s current population stood at 124 crore and as per the available data, the Nation has carrying a burden of public debt to the tune of Rs 46,06,350 crore at the end of December 2013. As per government figures, the interest servicing outgo by the end of this fiscal is expected to be Rs 4,27,011 crore or if simply put, for every rupee that the government earns 20 paise are utilized for servicing debt. To be more precise the Nation is paying Rs 1,25,684 per second as interest and the per capita interest burden is Rs 46,448. The internal borrowings from the market to bridge the fiscal deficit are another area of debt as per the 2014-15 budget. We need a gross amount of Rs 5.63 lakh crore and a net amount of Rs 4.53 lakh crore respectively.

Some of us may argue that the rising debt for a fast growing Nation is a positive sign.

Rising debt can only be good if a sovereign is able to service it. But a hike in government debt means higher outgo of revenues as the cost of borrowing is already on the higher side.

This will also effect the fiscal deficit going forward. To contain fiscal deficit and current account deficit at the cost of expenditure, the current UPA government headed by Congress is big failure as per the data given by the government itself. The manufacturing sector, especially the manufacturing of capital goods and consumer durables for the last couple of months, clearly indicates a decline. These are some of the economic figures and data which show us the Nation’s plight and heading whereto. Social scenario in the country is also not giving a rosy picture according to the data. The rampant reporting of farmers suicide, poverty, high inflation and widening gulf of disparity among the rich and poor are the starking realities of the Nation. Even after 54 long years in power the Congress party could not be able to put the Nation on the right growth path when we compare with any of the other developing Asian countries, especially China or South Korea , Indonesia for that matter.

What Chidamabaram would inherit to his successor is understood from reading the above two paragraphs of this column. One thing is sure that the Nation and its majority general public are longing for an escape from this predicament. It is not the duration or the genus of the party that ruled the nation is not the concern of the people but the quantum of wealth and welfare they bring to the nation.

www.passlinebusinessmagazine.com

Varghese Paul

March 31 - April 30, 2014

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Will Partner Kerala projects too

By R G Gireesh

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he recently held two-day Partner Kerala Meet organized by the Department of Urban Affairs ended with a lot of publicity blitz and fanfare.

The department claims that the objective of the meet was to help the cash-strapped local bodies to find partners on the public-private participation (PPP) mode for developmental activities like waste management, town beautification, shopping complexes, comfort stations, parking lots and flyovers. The meet showcased 84 projects worth Rs 6,500 crore involving 70 municipalities and urban bodies. They will be undertaken on a PPP/ BOT mode.

Some of the major projects in the list include Palayam area development costing Rs 865.60 crore and Valiyangadi area reconstruction schemes (Rs 750 crore) in Kozhikode; development of Sakthan Nagar at Thrissur (Rs 700 crore) and a shopping mall at Manapattiparambu (Rs 181.89 crore), a premium commercial hub and city centre at Kaloor (Rs 95 crore) and a regional sports complex at Mundamveli (Rs 50.19 crore), all in Kochi.

All these are excellent and soothing to the ear of an average Keralite.

But, the timing chosen by the UDF Government for the meet just before the impending parliamentary elections and the outcome of the earlier similar extravaganzas like the Global Investor Meet (GIM) and Emerging Kerala cause suspicions among the people of its intentions.

PPP mainly implies the coming together of the private and public sectors having different prescriptions and objectives but is meant for the development of the country. This partnership has become the latest method of infrastructural development and is implemented by many developed and developing countries. Top priority is given to PPP projects in the Eleventh Five-year Plan both in the Central and State’s Plan initiatives as an attempt to overcome the infrastructural lacunae faced by the country.

In 2003, then Chief Minister A K Antony organized GIM and signed MOUs worth Rs 50,000 crore. But only a few projects were implemented, most others remaining on paper. Again, in 2012, under the aegis of Chief Minis-

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Union Cabinet Minister Vayalar Ravi inaugurating Partner Kerala Meet ter Oommen Chandy Emerging Kerala was organized to push investors for major initiatives like the Rs 2,000-crore supplementary gas infrastructure project, the Vizhinjam seaport costing Rs 7,000 crore, a Rs 45,000-crore high-speed rail corridor, a Rs 53,825crore Kochi-Palakkad National Investment and Manufacturing Zone, the Rs 5,500-crore Kochi Metro Rail, the Thiruvananthapuram and Kozhikode monorail projects costing Rs 3,408 crore and Rs 1,500 crore, respectively, a Rs 750-crore Kochi electronics hub, a Rs 350-crore Kochi oceanarium and a Rs 300-crore Thiruvananthapuram life science park. Except one or two, the fate of most of the projects is in limbo and the Government is for another Emerging Kerala in 2014, since the event is serialized as a biennial programme.

Many allegations were aired by various associations and departments against the activities under Emerging Kerala held in September 2012.

Most of the projects proposed then were reportedly hazardous for the environment. Revenue Minister Adoor Prakash had given a dissent note to the Prime Minister seeking a probe to clear the fumes and dust arising after

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the event. Assertions were made by the LDF that most of the revenue and forest lands were going to be illegally surrendered to private companies. The Forest Department had also alleged that against the backdrop of Emerging the Kerala Government was planning to demolish the hills surrounding Wagmon, Nelliampathy and Peerumedu to build healthcare centres, golf clubs, resorts etc. Many projects which were presented at GIM and could not get clearance were remodelled and presented at Emerging Kerala.

Some of those were also proposed in Partner Kerala 2014.

Does the PPP model have relevance in the Indian economy?

Critics argue that the projects under this model are supervised and controlled by crony capitalists. Crony capitalism is a term describing an economy in which victory in business depends on close relationships between business people and Government officials. Crony capitalism is believed to arise when business cronyism and related self-serving behaviour by businesses or business people spill over to politics and govern-

ment, or when self-serving friendships and family ties between businessmen and the Government influence the economy and society to the extent that it corrupts public-serving economic and political ideals.

But antagonists will agree in one voice that formation of sturdy and pre-

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remain on paper?

says Prof Aravindakshan, an expert on this model of development.

Such schemes and plans will also help private companies to take over public property, he says. In the future,

mium infrastructure is a prerequisite for rapid economic development and requires sustained investment, supported well by technological innovation, skilled labour force and admirable project management. It is not always possible by the Government, especially in a country like India, to bring along all these together without private sector involvement. It may be possible by public and private sector togetherness in a mutually beneficial way in the form of public-private partnerships not only to execute infrastructure projects but also engender innovative schemes for social development.

(SEBI) has been appointed as the regulatory body for stock markets; but there are no regulators for roads and highways. It is still not clear how the Government and its private partners are going to handle the projects, how the fund is managed and how business will be done by the Government and its partners.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, is a piece of legislation that regulates land acquisition and provides laid-down rules for granting compensation, rehabilitation and resettlement to affected people. The Act came into force on January 1, 2014, and its scope includes all land acquisitions whether by the Central or any State Government, except the state of Jammu & Kashmir. The Act is also applicable when the Government acquires land with the ultimate purpose of transferring it for the use of private companies for stated public purposes.

The purpose of the Act includes PPP projects, but excludes land acquired for state or national highway projects.

Many criticisms have been raised by doubting Thomases across India. Amartya Sen, the India-born Nobel laureate in economics, claims that prohibiting the use of fertile agricultural land for industries is ultimately invidious.

“There has not been any clarity in PPPs’ work because till today there has been no regulatory body assigned for its function. PPP is also brought under the control of the Comptroller and Auditor General of India (CAG) as this will deal with the corporate move to make money in unrestrained ways.

CAG has given a set of public auditing guidelines for PPP in Infrastructure in which it states that PPPs, while bringing in private capital and experience, also involve transfer of valuable public assets as well as foregoing future revenues in the form of concessions.

To ensure that such arrangements always enjoy high credibility in the public eye, due diligence, transparency, objectivity and probity of the entire decision-making process are all paramount if these arrangements are to succeed and continue for future projects. The role of public auditors, there-

G Vijayaraghavan, Planning Board member, said at a seminar ‘Perspective 2013’, organized by the Public Works Department in 2013, that PPP projects commenced in the state in various fields have not been successful because of lack of transparency.

Accountability has been lost many a time and people will question the purpose of these. The benefits and risks should be shared and the private sector is not here for charity and hence the transparency should be adopted.

Land acquisition is one of the main problems associated with such projects and locals should be taken into confidence.

fore, becomes critical in assessing whether such arrangements are truly in public interest and are also fair and balanced in sharing risks as well as rewards. Audit of such entities poses a huge challenge and requires a change in the audit methodology as also the approach of public auditors.

The audit while promoting accountability should not discourage private sector involvement, investment and innovative management techniques,”

the Government may face big revenue deficits. It should have some lucidity in its work, and it should be with the public interest and belief. Still there is no accountability and transparency in the case whether these projects are controlled by governments or private partnerships. Therefore public auditing is the basic solution and CAG should take the responsibility to expunge the ambiguity surrounding this. The Security and Exchange Board of India

The people of Kerala are looking at such developmental projects with fear and anxiety, based on some of the previous incidents faced by them. These mega-projects may sound fascinating and will surely make Kerala one of the marvellous destinations of the country, but this needs a large area of land which is not available in a small state like ours and therefore some displacement of people also may happen to fulfil these projects. This has created doubts in the public’s mind that the authorities are making hay when the sun shines while dealing with the tourism and land mafias, who are yearning to own more lands in the state in the name of development.

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10

indications

Dr V K Vijayakumar

O

n 7th March the stock markets touched record highs: the Sensex closed at 21919.79 and the Nifty closed at 6526.65. This ferocious Bull Run took many market players by surprise. The FIIs poured Rs 9500 crores into Indian markets continuously for 17 days upto March 7. Why are the FIIs so bullish on the Indian economy?

election rally before 2014 polls. Why are the markets bullish this time?

It might appear paradoxical to many that the stock markets have soared when the economy is going through one of the most difficult years in recent times. In 2013-14 the Indian economy grew by a mere 4.5 %. This year, the growth rate is likely to be around 4.8%. This means that the economy has grown by sub 5% for two years consecutively. Such a terrible performance is for the first time in the last 20 years. Corporate earnings growth is in single digits and business confidence level is abysmally low. Why are the markets ignoring this negative news?

The simple answer is that the market is discounting ‘good news’ that is just

Markets discount the future and are driven by expectations. The expectation from an election outcome is huge, particularly when the election outcome is perceived to impact the economy and markets. This explains the preelection rallies in stock markets. Data since 1991 show that barring 2004, the markets witnessed pre-election rallies.

In 2004 the Sensex declined by 11% in the three months prior to elections.

In all other election years the markets rallied before the elections: by 24% before 1991 polls, by 7% before 1996 polls, by 6% before 1998 polls, by 14 % before 1999 polls and by 27% before 2009 polls. Most of the time, the trend continued after the elections as well. Now, we are witnessing a pre-

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around the corner. The stock market index is a leading indicator: it indicates, more often than not, what is likely to happen. In the perception of the market, the coming elections are likely to throw up a stable government. The market prefers a businessfriendly, pro-market government. This means, it will appreciate either a UPA led government or an NDA led government. Since the UPA’s track record during the last few years has been pretty bad, the market now prefers a stable government under a strong leadership. In other words, it is looking forward to an NDA dispensation under Modi. The present political developments and trends point to such a possibility. The market is discounting

March 31 - April 30, 2014

this. If the market’s expectation materialises, the bullish trend in the market is likely to sustain.

The Modi hope factor is not the only factor driving the markets. It is supported by improving economic fundamentals. The twin deficit problem – high fiscal deficit and high current account deficit – has been the bane of the Indian economy for the past two years. These deficits are now largely under control. Consequently rupee has been steady. Inflation is trending down, though slowly. The Cabinet Committee on Investment (CCI) has cleared projects worth more than 4 lakh crores. This positive environment is aiding the bullish trend. But the prime mover of the market is certainly the ‘Modi hope factor.’

All indications are that the UPA is likely to perform very poorly during 2014 elections with the congress tally diving to double digits. The UPA, after a major electoral debacle, will not have the moral authority to stake claim to form the government. Therefore, a UPA government supported by the Third Front is almost impossible. A Third Front government

supported by the UPA from outside, if at all that happens will be inherently unstable. The legacy of the Deva Gowda and Gujaral dispensations are fresh in everybody’s mind. Such a dispensation will not have the authority to implement the economic reforms which the country badly needs now.

Therefore, a badly fractured verdict leading to an unstable government under weak leadership will lead to a sell off in the stock market unleashing far reaching consequences.

Even though the Congress is credited for initiating economic reforms in India and Manmohan Singh can rightly claim to be the architect of reforms, it is a fact that the Congress has spoiled its image thanks to the serial scams

that rocked UPA 2. An insipid leadership that helplessly watched politicians and crony capitalists loot the country, inflicted severe damage on the country and impacted economic growth. .Also, unviable and unsustainable welfare programs wrecked havoc on the fisc making inflation a structural problem thereby constraining the RBI from providing a monetary stimulus to the economy by cutting interest rates.

The market feels that a stable government under a strong leader can turn the political and economic environment for the better. The Vajpayee led NDA government’s track record has been good. Particularly, its focus on infrastructure developm e n t with

projects like the Golden Quadrilateral received much acclaim. The market feels that an NDA government will push ahead with the much needed reforms. This explains the enthusiasm in the market.

Whether this enthusiasm will sustain till and beyond elections is the million dollar question. Stock markets have an uncanny ability to discount future economic developments. But they don’t have a similar track record in anticipating future political developments.

Will the markets prove right in 2014?

Let us keep our fingers crossed.

(The author is Investment Strategist, Geojit BNP Paribas)

11

growthCHEST companies - X CURRENCY

SIB: bringing the unbanked to banking T

hrissur district is globally known as the land of ‘poorams’ and considered to be the cultural capital of Kerala. But it is rarely recognized as the birthplace of three commercial private banks of the state, which have a pan-India presence now. Among the three, The South Indian Bank Ltd (SIB) has grown beyond the expectations of anyone and become one of the finest banks in the country in the private sector.

SIB came into being in 1929 during the Swadeshi movement. Its establishment was the fulfilment of the dreams of a group of enterprising men who joined together at Thrissur to provide the people with a safe, efficient and service-oriented repository of savings of the community on one hand and to free the business community from the clutches of greedy moneylenders on the other by giving need-based credit at reasonable rates of interest.

Even in its initial stages the RBI had selected SIB to open and operate a currency chest on its behalf which enabled it to reduce its cash holdings considerably.

On September 22, 1998 SIB tapped the market with an initial offer price of Rs 32 and listed the shares on the bourse on December 17 that year at Rs 18. SIB has scripted an overwhelming growth story for its investors. FIIs are holding 44.8% of the shares. The bank

grew to its present size and stature by holding the confidence of its investors and business partners.

V A Joseph SIB has been transacting general banking business of every description right from its inception and today it has surpassed the business target of Rs 75,000 crore and is gearing up for the 1 lakh crore ambitious target at the end of the current fiscal.

It has today 788 branches and 903 ATMs countrywide including the unbanked area of North East and a staff of 6,300. Dr V A Joseph, the present Managing Director and CEO, has played a pivotal role in elevating the bank to its present size and strength.

Both the bank and Joseph himself have gained national and international repute and received coveted awards and recognitions.

Even in its initial stages the RBI had selected SIB to open and operate

a currency chest on its behalf which enabled it to reduce its cash holdings considerably. On its path of growth the bank had taken over the assets and liabilities of the Kshemavilasam Banking Co Ltd, Thrissur; and the Ambat Bank Private Ltd, Chittur. It continued its shopping spree by acquiring Public Bank Ltd, Pudukkad; Suburban Bank (P) Ltd, Thrissur; Vijaya Lakshmi Bank (P) Ltd, Parur; Chalakudy Bank Ltd, Chalakudy; Mukkattukara Catholic Bank Ltd, Mukkattukara; Assyrian Charities Banking Company, Thrissur; Catholic Syarian Christian Bank Ltd, Kanjany; Malabar Bank Ltd, Thrissur; Bharath Union Bank Ltd, Thrissur; and Kozhuvanal Bank Ltd, Kozhuvanal.

The bank ventured into merchant banking in 1990 with supporting underwriting for 99 new issues. In 1992 it subdivided 75,26,140 equity shares issued and in 1994 extended underwriting support to 17 more public issues worth Rs 459 lakh. In 1998 the bank was listed on stock exchanges.

The comprehensive and centralized banking solution, Sibertech, which runs on the Finacle platform provided

by Infosys Technologies was launched in 2001. The bank also entered into new alliances with three exchange in the Gulf.

In 2002 SIB entered insurance product distribution in a tie-up with a leading insurance company in the country. The same year it introduced its VRS scheme named The South Indian Bank Employees Voluntary Retirement Scheme to all permanent eligible employees. The other milestones in the

year were the setting up of an ATM in Kovai, Tamil Nadu, its first online ATM outside its home state, and the starting of a rupee draft agreement with Union Exchange Co of Doha. In 2003 the present Managing Director and CEO, Dr V A Joseph, joined the bank as Executive Director. SIB also decided on a rights issue with a price band of Rs 38-Rs 45. In the same year, it opened its 401st branch at East Nada, Guruvayur, and entered into a pact with UAE Exchange and Wall Street Finance Ltd for speedy and hassle-free transfer of money from abroad.

During 2004-06, the bank entered into tie-ups with Dubai Exchange House, Al Razouki, Bahrain Financing Company, Franklin Templeton etc and also rolled out co-branded Citi credit card. Dr N J Kurian was appointed Additional Director of the bank on May 23, 2007. In 2008 bonus shares in the ratio of 1:4 were issued. ‘SIB Mahila’, the innovative savings product exclusively for women, was introdusced in 2009.

The product, linked with recurring deposits, provides 10 technological services for free, including insurance coverage for Rs 50,000 and an additional accident insurance for Rs 1 lakh.

For the exchange of expertise and services an MOU with Hatton National Bank was inked and the face value of the shares was split from Rs 10 to Re 1 in 2010. Merchant bankers were appointed in 2011, for managing its 400 million shares sold to the institutions.

In 2012 a dividend of Rs 0.60 per equity share having a face value of Re 1was declared

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12

PSU

KFC: Record performance in 60th year

Passline News Service

K

erala Financial Corporation (KFC) is inching towards a record performance in its 60th anniversary year. Started in 1951, the main objective of the corporation is rapid industrialization of the state through promotion of Micro, Small and Medium Enterprises (MSME), both in manufacturing and service sectors. Talking to Passline Joy Oommen Chairman and Managing Director said, “ we expect a 25% of growth in all the aspects including sanctions and dispersals in this fiscal. In NPA front also the corpo-

Joy Oommen

ration has gained tremendous mileage by curtailing it to bare minimum. The Corporation earned the highest ever Net Profit of Rs 66.83 crore during the FY 2012-13. The Non-performing Assets are at the lowest level of 0.36%.

The increase in growth was achieved despite KFC charging competitive rates of interest on Term Loans.

During its 60 years of existence the Corporation has given financial assistance to more 41000 units. With its innovative schemes, customer-friendly procedures, consultancy services etc, KFC has now become a single point contact for financial solutions to the aspiring entrepreneurs. The flagship scheme of the government Kerala State Entrepreneur Development Mission (KSEDM) for which KFC is the nodal agency for implementing the

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scheme. Under the scheme interest free financial assistance up to Rs 20 lakh with a repayment period of five years including one year moratorium is provided after selecting persons with aptitude, training them meticulously and providing necessary hand holding support. The efforts of KFC is bringing about a silent revolution in a state hitherto not known for its entrepreneurship efforts. More than 250 units are established and nearly 400 units are in various stages of establishment giving a new direction to the youth under the scheme.

Through KSEDM project KFC has started financing startup ventures in Technopark, Thiruvananthapurm, startup village in Kochi and at NIT, Calicut.�

Technocrats and other entrepreneurs who are desirous of launching such industrial units would be given technological and financial support. Enterprises in the areas such as food processing, information technology, apparels, handicrafts, presentation articles, agro processing, fish processing, packaging, etc. would get special attention

The CMD continued that in the coming fiscal KFC proposes to launch an innovative interest subvention scheme to manufacturing sector to give a boost to the industrial environment of the state. This scheme was announced in Kerala Budget for FY 2013-14. New ventures with technologies developed

by Central and State Research and Development Organisations as well as Agencies like Spices Board, Rubber Board, Coir Board, etc. would benefit from this scheme. Technocrats and other entrepreneurs who are desirous of launching such industrial units would be given technological and financial support. Enterprises in the areas such as food processing, information technology, apparels, handicrafts, presentation articles, agro processing, fish processing, packaging, etc. would get special attention. Enterprises requiring loan amount of less than Rs 1 crore would get interest subvention

March 31 - April 30, 2014

of 3% and others 2% from the normal rate of interest. The Government of Kerala had earmarked Rs 10 crore for providing interest subsidy. `` KFC will extend all support to prospective entrepreneurs starting with identification of new opportunities like project report preparation, facilitating clearances from other governmental agencies and

financial support by way of soft loans.

The government order on the scheme is awaited. Another milestone in the credibility aspect of the KFC is the RBI has given us the nod in principle for raising public deposits. We intend to raise deposits after completing the necessary formalities in the very near future,� Oommen added

13

TOURISM tourism

Kerala’s rich heritage tourism potential the capital city. Chinese fishing nets are one of the most-sought-after heritage tourism products and the most photographed objects in Kochi. The ongoing Muziris Heritage Tourism Project and Nila Heritage Tourism Circuit show the potential of the state.

Abin K I

H

eritage tourism is all about people visiting tourist destinations having cultural, historical and heritage significance. Heritage has always been one of the most central facets of Indian tourism, particularly in Kerala. Defined as “whatever we inherit from our past”, heritage can be natural and manmade and be in the form of mountain ranges, sacred groves, forts, palaces, museums, caves, shrines, mosques, temples, churches, wall paintings, sculptures, art objects, archaeological sites etc.

In Kerala there are many heritage attractions ranging from massive forts to petite caves in villages.

The state’s cultural diversity gives it an edge over other states, which makes heritage tourism a fast-growing industry here. Heritage tourists like to see authentic heritage monuments and know their history. Rural festivals, fairs and events are in great demand, especially among foreign tourists.

Some of Kerala’s prominent heritage attractions are the Padmanabhapuram Palace, the Sree Padmanabha Swamy Temple, the Bekal Fort, the Palakkad Fort, the Edakkal Caves, Krishnapuram Palace, Hill Palace Museum and the Chinese fishing nets. The East Fort of Thiruvananthapuram is known as the heritage zone of

Heritage tourism enables the conservation of buildings of exquisite architecture such as palaces and traditional Kerala houses like Nalukettu and Ettukettu by converting them into heritage hotels or home-stays without any major modifications. A significant number of heritage buildings and monuments are efficiently conserved through tourism.

Western Ghats, one of UNESCO’s natural heritage sites, passes through the state and has the largest number of serial sites. Kuttanad is famed for its distinctive geographical settings and typical farming practices. New forms of tourism can be promoted, such as cave tourism, tribal tourism, folklore tourism, sacred grove tourism and lighthouse tourism.

The Departments of Tourism and Archaeology should support and complement each other in implementing successful strategies for the development of archaeological and heritage tourism. Attractive heritagebased tourism circuits and packages should be launched to entice more tourists to every part and to distribute the benefits of heritage tourism in a balanced way.

Heritage tourism needs a solid policy for its effective balanced growth which leads to conservation and preservation. The valuable heritage of all forms of the state should be documented and conserved at all costs and tourism stakeholders, the host community and the De-

partment of Archaeology should be the major beneficiaries. The Department of Tourism should provide more financial assistance for preserving heritage monuments in working condition. Heritage monuments and archaeological sites can be effectively promoted through the website of Kerala Tourism in addition to the campaigns by the Department of Archaeology. Museums should be effectively managed with regard to the range of facilities they offer, entry fees and times for visitors.

One of the major hurdles in the way of protecting heritage structures and enforcing guidelines is that the civic authority does not possess the complete list of edifices that have heritage value. Kerala has one archaeological circle based at Thrissur which covers the monuments/sites in the state and some regions of adjoining districts in Tamil Nadu. Under the circle there are 28 monuments and nine sites protected by the Ancient Monuments and Archaeological Sites and Remains Act 1958 and Rules 1959. Most of the monuments and sites were earlier under the protection of former Cochin and Travancore states and they included temples, Jain monuments, churches, forts and palaces.

Interpretation centres and guide service should be made available at the heritage monuments to provide information about them. Besides archaeological museums the state also needs more museums such as those for ayurveda, tribals and historical events. Heritage walking tours are ideal in cities like Kochi for people to glimpse into their rich history and heritage, showcasing the mixed Dutch, Portuguese, British and Jewish influences

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14

current affairs

Third Front and reof Indian unity

K Vijayachandran

[This article was written five years ago as a campaign paper in support a third front of the regional parties and the left. The concept continues to be even more relevant today. The author has included this in his book, Perestroika Glasnost and Socialism published by Partridge India, reviewed in the current issue of Passline]

T

he notion of a third front of regional parties, led by the left and challenging the two fronts led by the so called national parties, had an inspiring and colorful take off during the fifteenth Loksabha elections. However, the very idea was looked down as plague by our elite classes. The main stream media had refused even to debate on the possibilities of and prospects of such an alternative. And under the heat of real politics it simply vanished like a rainbow: The protagonists of the idea were criticized and ridiculed for lack of vision and political experience. Revolutionary ideas are

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nothing but beautiful dreams, and we keep striving for their realization. The Indian State is degenerating rather rapidly and the search for an alternative system of governance for the Union Republic could hardly be postponed.

Indian National Congress had long outlived its role as the leader of national liberation: the bogus Gandhi

mantle on the person of its President has lost most of its magical powers.

BJP holds out Ram as a political trump card, but its efficacy has been greatly eroded by far lesser gods of more recent origin. Both Congress and BJP have lost most of their mass appeal, and regional parties that are close to the people at large are seen deserting these so called national parties, one after the other.

Our elite classes generally look down on regional parties: They are considered to be of little or no national importance. Regional parties even use all India labels, in order to enhance

March 31 - April 30, 2014

their repute, respectability and public acceptance. Nevertheless, relevance of regional parties has steadily increased, thanks to the failures of the national parties to live up to the expectations of common people. And today, they play a substantially large role in governing our Union Republic. Majority of Indian States are ruled, today, not by the national parties, but by re-

gional parties or political coalitions led by them. Congress and BJP, the two national parties patronized by the elite classes in order to develop a stable two party system of governance, wield political power only in fewer number of member states of the Union Republic.

Under our federal constitution, state governments are accountable for most part of development administration and governance including the delivery of public goods like policing and street level security. Division of responsibilities among Central, State and Local Self Government Institutions

is somewhat water-tight in our country, and not seamless as it should be, and as practiced in developed democracies elsewhere. As a consequence, there are numerous blind spots in our system of governance: The totally confused response to the 26/11 terror strike on Mumbai should serve as an eye opener in this regard.

Obviously, there is a gross mismatch between the responsibilities assigned to state Governments and the material resources at their disposal for discharging them. This mismatch has widened over the past years. State governments elected by the people and accountable to them, are hardly equipped to live up to their expectations regarding material and cultural development. Public institutions under them are totally ill-equipped and grossly underdeveloped compared to their counterparts at the Centre. Thanks to near total financial dependency, state governments find it impossible to launch meaningful capacity building programs and HRD projects of their own. This had precipitated a sort of self-aggravating dichotomy in Indian polity, which has now assumed alarming proportions, especially in the context of the recent economic reforms and structural adjustments.

Centralized policy making and decentralized administration are, no doubt, the golden principles of modern management; in business as well as in government. However, such a division of responsibilities in our federal constitution has not helped in developing a healthy Centre-State relationship. Due to the near-total financial dependency

15

envisioning and lack of grass-root level democracy, decentralized administration at the state and lower levels has remained a mere pipe dream. Centralized policy making, on the other hand had served to a large extent, the twin objectives of protecting the national economy from neo-colonial exploitation, as well as optimum use of internal resources.

After national independence, the Government in Delhi had substantially expanded its developmental role, by opening up new technical departments, several Central Public Sector Enterprises (CPSEs) or the so called Navaratna companies, as well as a vast network of S&T organizations: Indian Parliament, Planning Commission, the National Development Council (NDC) etc were serving as watch dogs over this large institutional network in broader national interests.

Statesmen like the great Rajaji had condemned this elaborate policy making apparatus as license-permit-quota raj: Nevertheless, it had helped the country in making rapid technological strides in several sectors and in pursuing an independent foreign policy.

However, capacity building of these magnitude did not take place at the state level due to a variety of reasons, including historical ones like bureaucratic hangover from the colonial administration in Delhi, as well as vested interests of big business houses.

These institutional arrangements intended for formulation of policies based on national consensus have been either destroyed or have undergone fundamental changes in recent times, thanks to the structural adjustment programs. Footloose bureaucrats and corrupt politicians decide on national policies and programs today, with little or no formal consultations at the national level and with state governments. The notorious nuclear deal with US was initiated by the Indian Ambassador in USA, and not by the atomic energy establishment, energy and power departments, or the Central Electricity Authority. There were no consultations, whatsoever, with the state governments either: They are

accountable for the street level supply of grid electricity and no nuclear power plant could be built on Indian soil without their permission and cooperation!

Electricity Act 2003, replacing the old act of 1948, was rushed through despite serious objections raised by several state governments. Our country has no worthwhile power policy today, and the main concern of the union power ministry is the assigning of EPC contracts for super power stations in locations finalized by it through all sorts dubious mechanisms. All these have virtually destabilized grid power development in the country, leading to widespread shortages and steep increases in electricity prices. Ministry for telecoms has given up the timetested national policy of capacity expansion based on an integrated program of technology development and local manufacture. Its only responsibility today is to auction off market rights for telecom operations and for this purpose we do not really require a union ministry in Delhi.

Signing of WTO agreement and the arbitrary withdrawal of agricultural subsidies by Central Government have destabilized our farms and led to a situation of massive farmer suicides. Several such examples of arbitrary policy changes by the central government could be cited, including those related to defense policies and defense contracts, where the central government had abdicated or misused the policy making authority vested with it in national interests.

Thanks to such numerous acts of omissions and commissions on the policy front, the very institution of central government has lost its moral authority over state governments, and along with it most of its patriotic credentials, earned and accumulated during the era of national planning and consensus, initiated under the leadership of Jawaharlal Nehru. This should be a matter of great political concern for a country like India which, as a matter of fact, is a large multinational State of continental dimensions.

The massive distortions that have crept into Centre-State relations, the working of our federal constitution and Indian polity at large, need urgent correction in the best interests of our people. Initiatives for this will not come from the so called national parties, Congress or BJP. Only a united front of the regional parties who are in real charge of governance in most parts of the country could be expected to take on such initiatives. The ten parties that have sponsored the third front in the present Loksabha elections have underlined the need for a serious review of the working of the Indian constitutions in general and Central-State relations in particular: Some of them have even published detailed discussions papers on the subject on the very eve of the elections.

These more serious a spects of Indian democracy and Indian polity are hardly discussed in our mainstream media. Pessimistic forecasts about the emerging third front of regional parties are the order of the day. Regional parties are often described as a motley crowd with no vision or ob-

jectives and without a Prime Minister candidate. They underplay the fact that, the Prime Minister candidate of Congress is not even contesting the elections. And, as alleged by the present leader of opposition in Parliament, Manmohan was the weakest among Indian Prime Ministers: It is common knowledge, that he was back-seat driven by an extensive PMO headed by a minister and controlled by numerous commissions and committees that were either unconstitutional or extraconstitutional. Five year term of UPA and Manmohan has proved beyond reasonable doubt that, our Union Republic barely needs a popular Prime Minister for its survival!

Even in the absence of a Charismatic Prime Minister, the third front Government could hold the country together in a far more satisfactory man-

ner, by making use of constitutional entities like the Inter State Council. It could be effectively in the formulation of national policies and for evolving consensus decisions on controversial issues; and its decisions need to be made binding on the Central Government. Even subject wise Inter State Councils could be established, if found necessary, as recommended in 2002

by Justice Venkitachelliah in his capacity as the Chairman of the National Committee for Reviewing the Working of the Constitution. Planning Commission could strengthen its federal character by working as the executive body of the National Development Council and making this august body accountable to the Inter State Council.

Central Government organizations could develop a federal character by establishing state level subsidiaries and affiliates, as part of a much needed capacity building program at the regional level. Major states could be invited in turn to participate in the corporate management of Navaratna companies at the board level. A third front of the regional parties, which

are already participating in the governance of the country in a big way, are well equipped to formulate such alternative policies and programs and bring the Central Government administration closer to the people, help it shed its imperial pretensions, and liberate it from the stranglehold of global monopolists.

Unity in diversity as reflected in janaganamana is the hallmark of Indian polity. Coming together of the regional parties around an alternative development perspective could be a turning point in Indian history. And, the third front that is just emerging, is sure to re-envision Indian unity in an altogether different perspective; a perspective that is far more realistic and relatively free from financial and religious fundamentalism

March 31 - April 30, 2014

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16

TRUE STORY

Instead of demons, they turned angels T

he horrific World Trade Centre crash in the US (9/11) was one of the worst tragedies the world has ever witnessed. That incident triggered anguish, anxiety and apprehension not only among US citizens but the whole world.

Many may not be knowing that the demonic act had its opposite gesture in certain other parts of the world projecting people with love and respect.

The following narration depicts the decent manners of a small population in a small town towards a number of stranded passengers who were heading for the US on the unfortunate day of September 11 and force-landed in their place. The chances are galore for those citizens to be hostile robbers, looters or even butchers of humans; instead they turned angels and hosts to over 10,000 guests (more than the host town’s population) and made their small population beneficiaries of the generosity of the guests and became well known to the world overnight. Continue reading to know all about them.

From Jerry Brown On the morning of Tuesday, September 11, we were about 5 hours out of Frankfurt, flying over the North Atlantic. All of a sudden the curtains parted and I was told to go to the cockpit, immediately, to see the captain. As soon as I got there I noticed that the crew had that “All Business” look on their faces. The captain handed me a printed message. It was from Delta’s main office in Atlanta and simply read, “All airways over the Continental United States are closed to commercial air traffic. Land ASAP at the nearest airport. Advise your destination.”

No one said a word about what this could mean. We knew it was a serious situation and we needed to find terra firma quickly. The captain determined that the nearest airport was 400 miles behind us in Gander, New Foundland.

He requested approval for a route change from the Canadian traffic controller and approval was granted immediately -- no questions asked. We found out later, of course, why there

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was no hesitation in approving our request. While the flight crew prepared the airplane for landing, another message arrived from Atlanta telling us about some terrorist activity in the New York area. A few minutes later word came in about the hijackings.

We decided to LIE to the passengers while we were still in the air. We told them the plane had a simple instrument problem and that we needed to land at the nearest airport in Gander, New Foundland, to have it checked out. We promised to give more information after landing in Gander. There was much grumbling among the passengers, but that’s nothing new!

Forty minutes later, we landed in Gander. Local time at Gander was 12:30 pm! (that’s 11 am EST).There were already about 20 other airplanes on the ground from all over the world that had taken this detour on their way to the US.

come in over the aircraft radio and for the first time we learned that airplanes were flown into the World Trade Centre in New York and into the Pentagon in DC. People were trying to use their cell phones, but were unable to connect due to a different cell system in Canada. Some did get through, but were only able to get to the Canadian operator who would tell them that the lines to the US were either blocked or jammed.

Sometime in the evening the news filtered to us that the World Trade Centre buildings had collapsed and that a fourth hijacking had resulted in a crash. By now the passengers were emotionally and physically exhausted, not to mention frightened, but everyone stayed amazingly calm. We had

airport told us that our turn to deplane would be 11 am the next morning. Passengers were not happy, but they simply resigned themselves to this news without much noise and started to prepare themselves to spend the night on the airplane.

Gander had promised us medical attention, if needed, water, and lavatory servicing. And they were true to their word. Fortunately we had no medical situations to worry about. We did have a young lady who was 33 weeks into her pregnancy. We took REALLY good care of her. The night passed without incident despite the uncomfortable sleeping arrangements. About 10.30 on the morning of the 12th a convoy of school buses showed up. We got off the plane and were taken to the

After we parked on the ramp, the captain made the following announcement: “Ladies and gentlemen, you must be wondering if all these airplanes around us have the same instrument problem as we have.The reality is that we are here for another reason.” Then he went on to explain the little bit we knew about the situation in the US. There were loud gasps and stares of disbelief. The captain informed passengers that Ground Control in Gander told us to stay put. The Canadian Government was in charge of our situation and no one was allowed to get off the aircraft. No one on the ground was allowed to come near any of the aircraft. Only airport police would come around periodically, look us over and go on to the next airplane.

In the next hour or so more planes landed and Gander ended up with 53 airplanes from all over the world, 27 of which were US commercial jets.

Meanwhile, bits of news started to

March 31 - April 30, 2014

only to look out of the window at the 52 other stranded aircraft to realize that we were not the only ones in this predicament.

We had been told earlier that they would be allowing people off the planes (one plane) at a time. At 6 pm, Gander

terminal where we went through Immigration and Customs and then had to register with the Red Cross.

After that we (the crew) were separated from the passengers and were taken in vans to a small hotel. We had no idea where our passengers

17 were going. We learned from the Red Cross that the town of Gander has a population of 10,400 people and they had about 10,500 passengers to take care of from all the airplanes that were

forced into Gander! We were told to just relax at the hotel and we would be contacted when the US airports opened again, but not to expect that call for a while. We found out the total scope of the terror back home only after getting to our hotel and turning on the TV, 24 hours after it all started.

Meanwhile, we had lots of time on our hands and found that the people of Gander were extremely friendly. They started calling us the “plane people”.

We enjoyed their hospitality, explored the town of Gander and ended up having a pretty good time. Two days later, we got that call and were taken back to the Gander airport. Back on the plane, we were reunited with the passengers and found out what they had been doing for the past two days. What we found out was incredible.

Gander and all the surrounding communities (within MATCH about a 75-km radius) had closed all high schools, meeting halls, lodges and any other large gathering places. They converted all these facilities to mass lodging areas for all the stranded travellers.

Some had cots set up, some had mats with sleeping bags and pillows set up.

All the high school students were required to volunteer their time to take care of the “guests.” Our 218 passengers ended up in a town called Lewisporte, about 45 km from Gander where they were put up in a high school. If any women wanted to be in a women-only facility, that was arranged. Families were kept together. All the elderly passengers were taken to private homes.

Remember that young pregnant lady? She was put up in a private home

right across the street from a 24-hour Urgent Care facility. There was a dentist on call and both male and female nurses remained with the crowd for the duration.

Phone calls and e-mails to the US and around the world were available to everyone once a day. During the day, passengers were offered “Excursion” trips. Some people went on boat cruises of the lakes and harbours.

Some went for hikes in the local forests. Local bakeries stayed open to make fresh bread for the guests. Food was prepared by all the residents and brought to the schools. People were driven to restaurants of their choice and offered wonderful meals. Everyone was given tokens for local laundry mats to wash their clothes, since luggage was still on the aircraft. In other words, every single need was met for those stranded travellers.

numbers, addresses and email addresses.

And then a very unusual thing happened. One of our passengers approached me and asked if he could make an announcement over the PA system. We never, ever allow that. But this time was different. I said “of course” and handed him the mike.

He picked up the PA and reminded everyone about what they had just gone through in the last few days.

He reminded them of the hospitality they had received at the hands of total strangers. He continued by saying that he would like to do something in return for the good folks of Lewisporte.

He said he was going to set up a Trust Fund under the name of DELTA 15 (our flight number). The purpose of the trust fund is to provide college scholarships for the high school students of Lewisporte.

As I write this account, the trust fund is at more than $1.5 million and has assisted 134 students in college education. I just wanted to share this story because we need good stories right now.

It gives me a little bit of hope to know that some people in a faraway place were kind to some strangers who literally dropped in on them. It reminds me how much good there is in the world. In spite of all the rotten things we see going on in today’s world this story confirms that there are still a lot of good people in the world and when things get bad, they will come forward.

(Jerry Brown is a flight attendant on Delta Flight 15. The article was written following 9-11)

Your mobile is now your passbook.

Passengers were crying while telling us these stories. Finally, when they were told that US airports had reopened, they were delivered to the airport right on time and without a single passenger missing or late. The local Red Cross had all the information about the whereabouts of each and every passenger and knew which plane they needed to be on and when all the planes were leaving. They coordinated everything beautifully.

It was absolutely incredible. When passengers came on board, it was like they had been on a cruise. Everyone knew each other by name. They were swapping stories of their stay, impressing each other with who had the better time. Our flight back to Atlanta looked like a chartered party flight. The crew just stayed out of their way. It was mind-boggling. Passengers had totally bonded and were calling each other by their first names, exchanging phone

He asked for donations of any amount from his fellow travellers. When the paper with donations got back to us with the amounts, names, phone numbers and addresses, the total was for more than $14,000! The gentleman, an MD from Virginia , promised to match the donations and to start the administrative work on the scholarship. He also said that he would forward this proposal to Delta Corporate and ask them to donate as well.

Presenting the FedBook app. All the info of your passbook, now on your smart phone.

Real Time Updates Offline Access Transaction Tags 4 Digit PIN log in Easy to Download Easy to Install To learn what Federal Bank’s perfect banking innovations can do for you, just walk in to your nearest branch.

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www.federalbank.co.in

March 31 - April 30, 2014

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18 NEW VENTURE

Passline News Service

based on the subscription of the user.

The main advantages of this version are it has superfast email delivery, reducing costs by almost 50%. There is no load of IT staff and no need for any software setup.

Capstocks in its publication Capstocks Infoline states: “Finahub Kinship Platform is a unique service that enables us to email relevant research reports and investment advice to the clients. With its report category and user subscription features, Finahub helps Capstocks to customize its research report service to the needs and wants of the individual customer.”

limited company with 10 team members.

I

n the stock market history of India the biggest crash was in 2008.

Following this unpleasant incident, many people lost their money and their dreams were shattered. This made thousands of investors exit from the stock market.

But two youngsters and engineering graduates, Ajith K George and Rajesh Sukumaran, who were also victims of the 2008 havoc, thought of a different plan where people could team up and invest together so that there would be better possibilities of success. First they came up with a public social network exclusively for Indian investors, but that didn’t work.

They then developed a customer management platform for retail brokers, which paved the way for the formation of Finahub, which started operations in 2012 as Finahub Internet Services LLP in Thiruvananthapuram with Hedge Equities as its first client and Capstocks and Securities (India) Pvt Ltd as another. In November 2012, they moved to Startup Village in Kochi and in 2013, were listed among the top 10 startups. Another feather in their cap came when Finahub was selected

by NASSCOM among 4,000 startups across India. This helped Finahub get financial aid for expansion, networking facilities etc. This year(2014), they registered their venture as a private

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“Finahub is a technology service company providing capital market players with services which will make their customer-management efforts trouble-free and efficient,” says Rajesh, CEO of the company. Ajith, COO, adds that Finahub’s product, Kinship Platform, is a unique service that enables broking firms to send research reports and investment advice that are relevant to customers. With its report category and user subscription features, Kinship enables broking firms to customize its research report service to the needs and wants of individual customers. Kinship Platform comes with superfast email delivery that ensures time-sensitive news and reports for customers in time so that they can make maximum profit. It reduces the manual effort involved in sending out reports so that the team can spend more time servicing the needs of customers. The platform stores all the reports published by broking firms on the cloud and serves them to customers on demand. It allows the firm to track the interest and needs of customers so that it can serve them better. The platform provides a stock market portal with login access to customers so that they can access all the research reports published by the firm, edit their report subscription and maintain a watch list of securities. “We have a light version of Kinship Platform named Kinship Data Express which replaces broking firms’ bulk emailing solutions with far better alternatives. This helps broking firms to communicate all kinds of research or news to their clients in real time

March 31 - April 30, 2014

“The Kinship Platform and Finahub’s customer support have been really commendable. In fact the team have been able to take the inputs I gave as guidance to improve their product further. Their dedication and passion will be the key assets to hold on for the days to come,” says Alex Babu, Managing Director, Hedge Equities Ltd. “Finahub charges its customers on pay-per-use basis and monthly billing will vary depending on the number of users the customer adds to the platform and the number of modules used.

The company’s present turnover is around Rs 72 lakh,” says Ajith.

“The clients can reinforce their research team by selecting expert analysts from our network and they can manage stock market up-and-down cycles effectively. A network of wellqualified technical and fundamental analysts helps retail broking firms in capital market research. This service helps the firms to keep fewer people on payrolls, to reduce their operational costs by having control over payroll costs and get information within two seconds,” says Rajesh.

“The company has planned to expand business to Mumbai and we have given a trial of our service to Nirmal Bang for 30 days. We give our services for free trial to every new customer, so that they have full freedom to accept or reject our services. And we don’t have a perfect competitor in India; still there are some companies which are doing bulk emailing services to customers on share markets,” says Ajith. “e-KYC (Electronic Know Your Customer) solution from Finahub, launched in December 2013, is a turnkey solution that helps business

houses to take advantage of the Aadhaar-based KYC services provided by UIDAI (Unique Identification Authority of India). The solution makes implementation of e-KYC services hasslefree and efficient. e-KYC Aadhaar service will enable individual customers to authorize service providers like banks/ stock brokers/insurance providers etc to receive electronic copies of address proof and their proof of identity. As this is a real-time solution, business houses can provide instant on-boarding services to customers as their KYC details are verified and retrieved from UIDAI servers in real time. The service can be accessed via hand-held devices too. This enables on-boarding of customers even on customer premises,” said Rajesh.

Finahub has developed an eKYC server which is an integral part of the Aadhaar eKYC service offering. The eKYC server is designed to be highly configurable so that integration with any customer information system can be easily achieved. The server comes with integrated fraud detection mechanism that will monitor and report suspicious activities. Apart from that, Finahub is spearheading the open source project Ektha, which is the open source implementation of the Aadhaar Authentication Server. Aadhaar card and the Aadhaar-based Authentication Service provided by the Central Government is a giant step forward in providing financial inclusion to the poor and underprivileged. To make it a reality Aadhaar authentication needs to be widely adopted across sectors. The Aadhaar-based authentication server that follows the standards and guidelines laid down by UIDAI is a prerequisite for any successful implementation of Aadhaar-based Authentication Service. We want to build a server that will comply with all the audit and security guidelines formulated by UIDAI. “Availability of such server in open source will help the implementation team to concentrate on solving their domain-specific problems rather reinventing the wheel. Apart from that, Finahub as a company has immensely benefited from the open software and this is our effort to pay back to the community. Ektha Open source Aadhaar Authentication Server is unique in the sense that it enables us to contribute the open source as well as provide a helping hand in our country’s financial inclusion and poverty alleviation efforts,” says Ajith

19

PROJECT ESTIMATE

Hospitals—potential growth sector

Job K T

I

ndia’s hospital sector today has an investment of Rs 50,000 crore which is expected to grow to Rs 1,75,000 crore by 2023. The compound average growth rate (CAGR) of healthcare for the next 11 years has been estimated at 21%. However, India’s healthcare spend is significantly low compared with that of developed and other emerging economies.

Private-sector contribution to the healthcare sector is almost 75% in terms of investment. These figures indicate the tremendous potential for the hospital sector in the country.

By 2013, the revenues from the healthcare sector had reached 7% of GDP and employed over four million people.

The Central and State Governments cannot provide the huge investments needed in the healthcare sector and here comes the role of the private and cooperative sectors. Theirs will continue to be the largest investment and they will likely fund another Rs 25,000 crore in 2014.

The reasons for growth of hospitals in India are: increase in population; shift in demographics; rise in disposable income; increase in incidence of lifestylerelated diseases; rising literacy; tax benefits; medical tourism; and insurance coverage.

The private sector in Kerala has risen to meet the demand for hospitals. It now contributes more than 87% of investments and 60% of beds availability.

There are about 4,000 hospitals with 24,400 doctors under the private sector. The strength of nurses available for healthcare services under the private sector is 20,164 and paramedical staff 12,910.

What is the feasibility of establishing a hospital in Kerala with general and speciality departments like general medicine, paediatrics, dental, casualty, pharmacy, general surgery, gynaecology, ortho, neurology, physiotherapy, clinical laboratory, operation theatres and labour room, blood bank and ambulances?

A built-up area of about 60,000 sq ft will be required to set up a moderate hospital. It will require around 30 doctors including 15 specialists, paramedical staff and nurses to provide high-quality treatment.

The major pieces of equipment required for a hospital are X-ray machine, infusion pump, defibrillator, syringe pump, multipara monitor, semi-auto analyser, nebulizer, physiotherapy equipment, pressure stabi-

lizer, BP apparatus, pulso-oxymeter, surgical diathermy, foetal monitor, phototherapy machine, microscope, ventilator and colour doppler.

The estimated cost of the equipment and furniture and fittings comes to Rs 300 lakh. Another Rs 100 lakh will be required for setting up a pharmacy, laboratory and blood bank.

A hospital with 250 beds and having general and speciality departments is introduced for the potential investors. The project particulars are shown below: S.N.

Description

The project can expect a term loan of Rs 1,200 lakh from financial institutions. The promoters have to bring in Rs 955 lakh as equity.

S.N.

Land

5 acres

2

Building

60,000 Sq. ft

3

Hospital equipment, operation theatre equipment, Rs 300.00 lakh Hospital furniture, fittings, ambulance etc

4

Pharmacy, Laboratory,and Rs 100.00 lakh Blood Bank

5

Direct Employment Poten100 people tial

6

Power Requirement

120 HP

Amt (Rs. In lakhs)

1

Land @ 5.0 acres

2

Building including site development, landscaping, Internal 1500.00 roads, water supply, effluent treatment etc

3

Hospital equipment

4

Pharmacy, Laboratory Equip100.00 ment and Blood Bank

5

Miscellaneous Fixed Assets

6

Preliminary & Pre-operative 30.00 Expenses

7

Contingency@5%

8

Margin Money for Working 75.00 Capital

Requirement

1

Particulars

Total

Own

300.00

50.00

100.00

2155.00

The approximate investment required for setting up a 250-bed hospital will be Rs 370.00 lakh, as shown below. However, there may be minor variations in the cost depending upon the location and facilities.

Sl. No.

Amount

The hospital sector is projected to grow at 21% per annum. A hospital having 250 beds with general and speciality departments will require an investment of Rs 2,215.00 lakh. The enterprise can be formed as a society or a company. It will be eligible (Rs,in lakhs) for a term loan of Rs 1,200 lakh from any of the financial institutions.

1

Income from registration, consultation, Op Tickets, Ip Tickets, rent from wards, 2400.00 medicines, operation theatre

2

Cost of medicines, salary, consultation fees, Operation fees, power, water, de- 2000,00 preciation, interest on term loan

3

Operating Profit

400.00

4

Break Even point

60%

5

Pay Back Period

5 years

6

Internet Rate of Return

40%

The economic indicators of the project are found to be attractive. It is a good proposition to invest in the hospital industry in Kerala. However, a detailed study should be carried out before taking a final investment decision.

(Prof Job is a retired senior faculty member of Centre for Management Development, Thiruvananthapuram. He offers training and consultancy services to small and medium enterprises. He can be contacted at mob: 9847135571 or email: jobkt012@gmail.com) March 31 - April 30, 2014

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20

INDUSTRY

20

V-BELL—chiming Passline News Service

Y

ou thought that the era of the grandfather (grandmother) clock was over? That only few would again pay money for it and bring it home or to their office?

Wrong. The chiming of the rosewood, winding clock has again started bringing a smile not only to the faces of grandmas and granddads but to the young also. It also peals in the richly appointed offices of companies, event halls and church halls.

Though the incessant marking of time might seem intrusive, it’s fitting and exhilarating having one in your home or in the office. This has been made possible now thanks to the efforts and enterprise of V-International Imports and Exports of Kochi, which manufactures the V-BELL brand of clocks and watches.

Time was when these clocks adorned the interiors of our churches and many homes. Made of rosewood, they had fine finish, accuracy and long-lasting lustre. Above all, they were beautiful, elegant and majestic. Though costly, by standards of those times, they were the darlings of their owners—and a delight to watch and to hear.

Larger in size than other clocks and artfully carved, they were considered symbols of prestige and affection by people everywhere, particularly by those in Europe

Tomy Joseph

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March 31 - April 30, 2014

where the product took birth. It was they who called them grandma and grandpa clocks and pampered and polished them just as they cared about or cared for their grandfathers and grandmothers with affection and love.

Keralites who have always been fond of quality items, though they may be a bit costlier, naturally have long been ardent lovers of these rosewood clocks. This perhaps explains why many still continue to exhibit them in their houses prominently and proudly proclaim their superiority over presentday makes. They always talk about the longevity and accuracy of old clocks and also the durability of the wood of which they used to be made.

Of late, laymen, like the elite in society, too have cultivated a profound liking for decorated rosewood clocks.

They consider the possession of these as a symbol of prestige and affection.

Even a modest family living in a below1000 sq ft house goes for a rosewood clock as a fancy item of tradition, style and status in society.

It is this slot that V-International Imports and Exports entered some years ago. A professionally managed company, it manufactures, exports and imports clocks and watches. It also undertakes servicing of all types of rosewood clocks, winding timepieces, wooden clocks and other related products. “We have a showroom named after our brand V-BELL at Holy Tuesday Shopping Mall at Kaloor, Kochi, which is the first showroom in Kerala for rosewood clocks,” says Tomy Joseph, founder and mentor of the firm, which has 25 years of experience in the clock business.

``V-BELL entered the Kerala market with clocks made of plastic and quartz clocks along with winding clocks,” says proprietor Tichu Tomy, father of Tomy Joseph. ``Till 1985-86, clocks available in the market required systematic winding once a week. It was VBELL which introduced quartz clocks for the first time in Kerala. We started with plastic clocks and then slowly introduced wooden quartz clocks in the market. During a business trip to Delhi,

for 25 years my father came across quartz clocks and brought the item here. It then became part and parcel of our business and of the people”, adds Tichu.

A product turning its own brand ambassador is the history of wooden boat wheel clocks. V-BELL introduced boat wheel clocks nearly eight years ago.

Now, along with boat wheel clocks, conch shell, Kathakali mascot, sword and shield and sun, nearly 40 models are available in the market with a price tag of Rs 1,500 to Rs 5,500. There are different types of quartz clocks with needle-sweep movements.

Rhythm, a Japanese company, manufactures the machines for this model of V-BELL. Another type of lovely clocks is the cuckoos. Cuckoo clocks are considered to be aristocratic stars among clocks. “Children are fans of cuckoo clocks. Cuckoos jut out opening the door and withdraw to their nest by humming out to the inmates, especially to the delight of children. Children are enticed by cuckoos eating their food on time at the behest of feeders who fail to cajole or coax them to it. Similarly cuckoo clocks with one year’s warranty are not sold by any other clock dealers except V-BELL. This silver oak wood clocks in 12 models are available from Rs 5,800 to Rs 12,000,” says Tichu.

Again, those who want luxury but do not want to spend much money can go for the 8-kite V-BELL clocks which bring to the minds of Malayalees the sweet memories of the erstwhile era.

These clocks are made with German technology. Even with a single winding

it functions non-stop for one month.

This clock is available at Rs 6,000 to Rs 7,000. Similarly, if the winding process causes any inconvenience, its quartz type is also available at a price range of Rs 3,500 to Rs 5,500.

Grandpa and granny clocks remind us of the tradition and nobility of the old days. These clocks are a symbol of the love of grandpas and grandmas.

These are available in sizes of 6.50 ft to 7.50 ft. They work by means of a

21 21

ny is also there. To express one’s love of and care for one’s grandmother, grandma clocks are also on display at V-BELL, though they are slightly shorter than grandpa clocks. These varieties are priced from Rs 14,000.

V-BELL makes clocks to suit the architectural design of your houses.

Moreover, for mementos or gifts there are clocks etching the logo of the company based on orders.

In line with the times VBELL has diversified into wrist watch-making. Wrist watches of 500 models of V-BELL with Miota Citizen machines are available in the market at a price range of Rs 500 to Rs 5,000. Along with this, winding alarm timepieces of Rs 600 to Rs 1,200 are also being marketed. ``Besides our showroom in Kochi, V-BELL is opening showrooms at Thrissur, Kozhikode and Thiruvananthapuram. Today we have factories at Piravom and Ernakulam. We are also planning to connect our business chain with South Indian states through franchisees.

We have called for franchisees for this purpose,” says Tichu.

Tichu Tomy

pendulum swinging by a German technique (These are imported from Germany). V-BELL was the first to market these.

Grandfather clocks made of rosewood and oak are priced from Rs 25,000 to Rs 1.5 lakh. Among them chain-pulling clocks are also stocked at V-BELL. As the mascot dragon is super-embossed on the clock it may also be called the dragon clock.

While affection still lingers for these grandpa clocks regard for gran-

V-BELL believes that maintaining and developing technology and innovative designs is the company’s mantra. “People today want quality. They also want value. We always provide customers with highquality products, excellent services and the most favourable prices,” says Tichu.

V-BELL has a team of skilled technicians, professional designers and experienced management talents. According to the management, maintaining and developing technology and innovative designs is the company’s first priority. Tillu Tomy, youngest son of Tomy, is also assisting his father and elder brother

Youngest son Tillu Tomy with his father

March 31 - April 30, 2014

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March 31 - April 30, 2014

23 FOCUS ON SAVINGS

Late for retirement savings: pull back the lost time

Y

ou may be brooding over the time lost during your service period without saving much for your post retirement needs. Need not worry. You may patch the gap left and catch up for the lost time. Find out how you can make up.

Start saving early. This is the best financial advice we often hear. All of us are not so lucky, and most of the Indians think serious about retirement savings only around the middle age.

There can be several reasons which desist you to start early savings . Perhaps you didn’t have a high income in your early years. Maybe you made the wrong investment choices or some female dependants to marry off or sacrificed for the best education of your kith and kin.

this is by opting for a higher deduction in the Voluntary Provident Fund (VPF).

If you are not covered by the EPF, you can opt for a PPF account, which has an annual investment limit of Rs 1 lakh. If you need to put away more than this, you could consider the New Pension Scheme (NPS). The government–backed scheme works just like a mutual fund except that you cannot easily withdraw before 60 and must compulsorily use 40% of the corpus to buy an annuity.

Some experts might argue that the returns from these debt options will never be able to beat inflation, and if

ings is not easy if you don’t have an investible surplus. This is where you need to bring in certain lifestyle changes and cut down on wasteful expenses.

It doesn’t mean that small savings that come from giving up dining out or putting your electronic gadgets on standby mode to save electricity. Instead, you need to think several times before you upgrade to a new car or buy that sleek smart phone launched last week.

An investment expert says that if you buy things you don’t need, you may soon have to sell the things you need.

If you are a spend thrift, it is better to put your credit cards in the locker and use cash when you make purchases

Whatever be the reason, there is no need to be panic.

You can make up for the bygone days and put your retirement back on track if you follow some strategies explained here. Of course, this will require you to invest in a disciplined manner but, you must be ready to forget a few lifestyle and even redraw your retirement graph.

If you can do all this, you have fairly good chance of retiring the way you have always dreamt about it.

You can notice that when the risk goes up, the required investment per month goes down. Your choice of the investment option should be guided by your ability to save the required amount and the risk you are willing to take.

Everybody longs to earn high returns from the investments. But if the savings are not too much and the period for saving is only 12-15 years to go for retirement, your focus should not be returns, but the quantum of your savings. You can’t afford to gamble in order to make up for the lost time.

You have to act safe that means you are to content with lower returns. Just tighten your belt and start saving aggressively.

A golden rule of financial planning says you should put away at least 1015% of your income into retirement savings every month. Given your situation, you might have to put away a bigger portion to reach your target. Make sure that whether you have the necessary discipline to save month after month. One effective way of ensuring

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the same amount is invested in equities, the returns would be much higher. Indeed, if you put the Rs 10,000 a month in the VPF, your corpus would grow to Rs 18.94 lakh in 10 years. If you put the same in an equity fund that gives 5% annualised returns, it would be significantly higher at Rs 27.86 lakh.

However, unlike the PF, there is an uncertainty in the case of returns from an equity fund . Because it is not assured but linked to the performance of the stock markets. Besides you can’t expect a fund to consistently deliver high returns over the longer term. Over time, even a good fund tends to slip.

Experts say you should not rely on factors you can’t control. But, reducing the risk does not mean you shun stocks completely. Equities are a volatile, yet rewarding, asset class, and there should be good quality, largecap stocks, not risk mid and smallcaps. For best results, you can opt for a large-cap diversified equity fund or go for the low-cost NPS. Increasing the quantum of sav-

March 31 - April 30, 2014

in a mall next time. When cash empties your pocket, it punches more than if you were to swipe you card. Though you end up paying the same amount, the very thought of cash going out of your hands reins you in, while the credit card unbridles you to spending.

This mode of transcations bring a change in your lifestyle and now might be a bit difficult. But they will be far less painful than the hardship that might be undergoing in 10-20 years if you don’t do this now. Going out to a mall on a purchasing spree may seem like a dream retirement. However, it may be heart-rendering that your wife is dropped at the mall for a part-time job and you go ahead to work as a manager of the elite club to make both ends meet.

You may have planned for a certain income level during retirement, but if your savings are not enough, you must scale down your expectations. Chennai - based finance professional Ranjit Lal and his wife Carol Lal, a bank

employee had planned to save Rs 3 crore for their retirement. However, Ranjit has lost his earlier contributions to the PF due to bungling by his former employer. So, the Lals have had to reschedule their retirement plan. The couple is now looking at saving Rs 2 crore over the next 10 years.

If the retirement goal is still far away it is ideal to put off the retirement target by a few years. This can make a significant difference in the income because the longer you work, the more you are able to save. Extending retirement is not always possible as it will depend on whether there is demand for your skills and the condition of your health when the time comes. To ensure gainful employment after retirement, keep in touch with the latest developments in your industry and develop a network of people who matter. Above all, maintain good health so that you can shoulder the burden of work as a senior citizen.

One of the most common reasons people are not able to save in the early years is that they put all their life’s savings into property. They might be living in houses worth cores of rupees, but their standard of living is quite modest in comparison. Reverse mortgage helps unlock the value of the property. It is just the opposite of a home loan. In a loan, a person buys property with money given by the bank and repays it with EMIs. In reverse mortgage, the bank starts giving the owner a monthly payment as a loan against his house.

His heirs will have to repay the reverse mortgage loan taken by him against the properly.

The finest part is that the money received from the bank is actually loan and is, therefore, tax free. The government has recently made reverse mortgage annuities from insurance firms tax-free as well. “Reverse mortgage is the most tax efficient way of earning a pension,”says a renowned tax practitioner.

Though the concept is very common in the West, it has not picked up in a country where property also has emotional value. People love their homes so much that they cannot bear the thought of leaving it for ever. However, it’s the last option worth considering for seniors if they enter their sunset years with an insufficient investment

24

P C Cyriac

24

ISSUES

Gadgil, Kasturirangan

N

ames like Madhav Gadgil and Kasturirangan have become all of a sudden house-hold names in Kerala, evoking strong feelings.

While some see these luminaries as the noble knights fighting to save the ecology of the Western Ghats,others look upon them as the messengers of doom for the millions who inhabit the area producing the foreign exchange earning cash crops As everyone knows, the Western Ghat is the magnificent mountain range running North-South along the six States of Gujarat, Maharashtra,Karnataka, Goa, Tamilnadu and Kerala, almost parallel to the West Coast of India.

The southern half of the Ghats lying in Karnataka and Kerala is the home of many rare and endemic species of plants and animals and the ecology here, is under threat due to the onslaught of man. Much has been written about the real estate ventures of Lavasa and the Iron ore mining operations in Goa and Karnataka, and the quarries and deforestation in Kerala.

So, when the Environmentalists shed tears over this, they had a sympathetic listener in Jairam Ramesh, the then Environment Minister, who ordered the appointment of a 15 member team with Madhav Gadgil as the Chairman to study the situation in the Western Ghats and suggest the areas to be declared as ecologically sensitive areas where restrictions and control measures listed under the Environment( Protection) Act, 1986 would be imposed in order to conserve,protect and rejuvenate the ecology of the region,’ following a comprehensive consultation process involving the people living there’.

The Gadgil Committee recommended the entire Western Ghat re-

PASSLINE

gion covering an area of 129,000 sq km to be declared as Eco sensitive zones where different degrees of controls were to be brought in.

He had divided the entire WG area into 9 km x 9 km size squares and assessed the bio diversity and bio richness and the eco-sensitivity of each square on the basis of criteria like the presence of endemic and rare species, the slope of the land, rainfall, the fragmented nature of the forest area, proneness of the area to natural disasters like land slips and assigning marks to each criterion and then arrived at the ranking of each taluk on the basis of the marks secured by all the 9 km x 9 km squares in each taluk. Based on all this , the taluks were classified into three varieties of eco sensitive zones.

Surprisingly, Gadgil and others visited Kerala only thrice- once they visited Trivandrum for a discussion with the top Kerala Govt officials, and then made a visit to Peechi, for a discussion with Environment experts and a visit to the Kerala Instt of Local Administration , Trichur and the Athirappally project area. He never visited the farmers and other residents in the Western Ghat region of Kerala. Yet, many of his recommendations would put restrictions on the normal life of these people. This is in spite of the specific govt instruction that the recommendations should be made following a comprehensive consultation process involving the local people.

Even the way in which the Gadgil Report attempted to justify the clamping of the Eco sensitive Zone(ESZ) restrictions on the entire Western Ghat area was very amateurish. Gadgil says,’ the Pronab Sen Committee has said that the ‘area of occurrence of every endemic species should be

March 31 - April 30, 2014

protected ‘ and here, the Western Ghats harbor well over 2000 endemic species. So, the Western Ghat region qualifies as ESA and so, the entire Western Ghats should be ESA’! While Gadgil has taken a casual observation

by Pronab Sen as sacrosanct, he has chosen to ignore completely a principle that Pronab Sen had clearly laid down: A Committee should know that the eco sensitive areas identified by it would receive protection under the Environment (Protection) Act, 1986.This awareness has two major implications. First, a balance has to be struck between the protection of eco sensitive areas and the needs of development, especially in a country with low incomes and high poverty. Pronab Sen had further stressed the importance of wide public consultation on the nature and manner of regulation of economic activities in the identified areas. Yet, Gadgil chose to simply ignore all this and held on to Sen’s comments on endemic species.

When the Gadgil Report which was kept confidential by the Govt in the beginning, was got released through a court order, there was a spate of complaints. The people living in this area strongly protested and the State Govts as well as the Central Government’s Commodity Boards like the Rubber Board, Spices Board and Coffee Board also pointed out that the production/ export of these commodities would be affected if the recommendations were to be implemented.

Thereafter the Govt decided to appoint the Kasturirangan Committee to make a holistic review of the Gadgil Report and to work out a practical action plan for implementing the recommendations.

Kasturirangan Committee decided that the Western Ghat region covered

In Kerala alone , the area of the ESA is more than the area of the Natural landscape. In other words, in Kerala, a part of the cultural landscape has been included in the ESA; It is clear that a part of the people’s habitation and farmlands has got included in the ESA, against the principle laid down that only natural landscape will be classified as ESA.

more area (an area of 165,000 sq km), but criticized Gadgil for declaring the entire WG as eco sensitive, even in the absence of clinching data and evidence. The Committee found that the Western Ghats was the home of 5 crores of people and that the Cultural landscape which included their habitation areas, farmsteads and plantations should be separated from the Natural landscape covering the Protected Areas, Reserve forests and grasslands,sacred groves and denuded forest areas . Kasturirangan wanted the Cultural landscape to be left to the people, while rigorously protecting

25 25

and the Western Ghats the Natural landscape, which would form the ESA(eco sensitive area). And he wanted further a buffer zone covering a distance of 10 km from the ESA limits, where the restrictions will apply.

How to separate the Cultural landscape from the Natural landscape? Dr Kasturirangan, the renowned space scientist chose the remote-sensing technology, but he was fair enough to accept the limitations of this technology. Here, the basic unit of demarcation was the village, as against the taluk in Gadgil’s case.

Please see the table below, giving the details of the Cultural landscape, Natural landscape and the Area of ESA in the Western Ghat States as worked out by the Kasturirangan Committee:

Kasturirangan estimated the natural landscape as about 41 % of the total WG area and identified the eco sensitive area as about 60,000 sq km, (approximately 37% of the total geographical area of WG) Satellite derived spatial layers on vegetation type and landscape level indices were used by him as the basis for identification of the ESAs. In Kerala, the ESA area covered 123 whole villages.

On the basis of the express recommendation by Kasturirangan, the Govt of India notified the areas proposed by the Committee as ESA and issued a Direction to the State Pollution Control Boards and other agencies not to permit certain types of activities like Mining, quarrying, sand mining and setting up of the ‘red’ category industries and

declared as ESA and land prices dropped to very low levels in all these places. Who will be ready to spend money and buy a piece of land where many types of activities are banned?

People who had plans to set up businesses or conduct marriages after selling their land were frustrated as the buyers had backed out. Imagine a situation where your assets lose their worth overnight! Obviously mistakes have crept in identifying the cultural landscape and separating it from the natural landscape. Kasturirangan’s Report itself has admitted that the Remote sensing technology has limitations and a plantation area could very well be misclassified as a natural forest.

State

Area of State

Western Ghat area

The State Govt of Kerala formed an expert Committee to study the problem and suggest soluNatural landscape ESA tions.

Gujarat

196,000 sq km

5,980 sq km

2,553 sq km

Maharashtra

307,700

55,345

21,185

Karnataka

191,790

44,450

21,530

Goa

3,702

1,749

1,558

Tamilnadu

130,058

27,069

8,947

Kerala

38,863

29,691

12,477

In Kerala alone , the area of the ESA is more than the area of the Natural landscape. In other words, in Kerala, a part of the cultural landscape has been included in the ESA; It is clear that a part of the people’s habitation and farmlands has got included in the ESA, against the principle laid down that only natural landscape will be classified as ESA.

businesses in the ESA areas as identified by Kasturirangan..

This created a huge uproar of protests from the people living in these areas . A substantial part of the Districts of Idukki, Wayanad, Calicut and some pockets in Ernakulam, Trichur, Palghat , Malappuram, Calicut, Kannur, Kottayam, Pathanamthitta, Quilon and Trivandrum had suddenly been

They visited the Ghats, 17,340 met the farmers and the 20,668 other inhabitants of the 1,461 Ghat area and also the envi6,914 ronmentalists 13,108 at about 30 different centres in Kerala and interacted with the local residents and understood the issues which generated anxiety. The Committee called for a physical verification of every plot of land in all the 400 villages in the Western Ghat region of Kerala to ascertain whether it is a habitation centre or agri land or plantation or forest area or other areas requiring to be protected . This way, the habitation , farm lands and plantations can be identified and

449 sq km

kept out of the ESA, and thus implement faithfully Kasturirangan’s principle of separating the cultural landscape from the natural landscape.

To get the physical verification completed within a week’s time in all the WG villages simultaneously, it was suggested that there should be a separate Committee for each village, consisting of the local Panchayat President, Panchayat Secretary, the Agricultural officer of the local Krishi Bhavan, the local Village Officer and the local Forest Officer. With the other locally available Panchayat members also joining to assist the team, the exercise can be completed in time, in a transparent manner.

The Kerala Govt accepted this recommendation and ordered this physical verification in all the 123 ESA villages alone, leaving out the rest of the WG villages. After the successful completion of this physical verification, the ESA areas in each village have been re-drawn eliminating the habitations and agri lands.

The Govt of India has accepted this proposal and issued a draft notification revising the ESA areas in respect of Kerala , on the lines proposed after the physical verification. Of course, the final Notification would be issued only after examining all the suggestions and proposals and objections received. It is hoped that the practical solution proposed without violating the fundamental principles laid down by Katurirangan will help the people to carry on peacefully and help in protecting the eco sensitive areas which require protection. Both the people and the ecology have to be saved .

(The writer is a former Principal Secretary to the Tamilnadu Government’s Industries Department.)

March 31 - April 30, 2014

PASSLINE

26

26

MONEY

Chits are a good option for small businesses

Sanjeev Kumar G

H

ussain was running a fancy store. He started the business two years ago and is able to make a profit of about Rs 15,000 a month.

His store is near a college. He learnt that he could develop his business by stocking educational books and other study materials. He wanted about Rs 3 lakh to invest in this. He approached many banks. They wanted three-year IT returns and three-year account statements certified by a chartered accountant.

He had not filed IT returns as his income was less than the taxable limit.

Finally he went to a local lender who gave the amount at an interest rate of 5% a month, which is about 60% a year. Though he could increase the sales the high interest rate had taken away all the profit.

This is the plight of all small businessmen in our state. The banking system does not support small businesses and many businessmen fail and leave just because they can’t bear the cost of finance.

Not only small businessmen, even those who do not have a salary slip or salary credited through banks will not get loans easily. Therefore many common people who foresee requirements of money join chit funds. They might want to source funds to construct a house or for a daughter’s marriage or for business purposes. Sometimes people use proceeds from chits to buy vehicles and consumer goods. Most of them believe it to be a cheaper option also. Is it so?

Let us analyse if it is better to take a bank loan or to go for chit funds. First we’ll consider a short-term chit and a short-term bank loan.

According to KSFE, for a chitty lasting 30 months, the total repayment will be 90% of the sala amount.

PASSLINE

Rajan who is a small trader wants about Rs 42,000 for business purposes. He joins a KSFE chit with sala of Rs 60,000 for a term of 30 months.

The instalment amount is Rs 2,000.

The first instalment is not available for bidding. Let us assume that he bid in the second month and got 75% of the sala as prize money which is about Rs 45,000. The maximum reduction

that will be more or less equal the loan processing charges and documentation charges of the bank. So what should we understand from this?

possible according to the Chitty Act is 25%. The total repayment for a 30month chit is expected to be 90% of the sala. This means that he will pay up a total Rs 54,000 to KSFE.

If the bank interest rate is lower than 16.25%, then the bank loan will be better. For example, a salaried person can get a personal loan at 14% to 15% interest. His total repayment will be less by Rs 700 to Rs 1,300 than the chitty. If there was vigorous auction during most of the months, then the total chit payment will be low which makes it look attractive. But you will not know how fierce will be the biddings, at the time of joining.

Let us assume that he went to a bank for a trade loan of Rs 45,000.

At an interest rate of 16.25% for 29 months the EMI will be Rs 1,861 and the total repayment will be about Rs 53,969 which is close to Rs 54,000 mentioned earlier.

To get the bid amount which he has won, he should either give gold or property as pledge or get Government servants as guarantors. In the case of a bank also he needs to do the same.

In the case of a chitty, foreman’s commission will be the additional cost and

March 31 - April 30, 2014

The chit will be better if the bank interest rate is higher than 16.25%.

It will also be better if the reduction due to bidding is less than 25% of the sala. In the case of the chitty, if there is more than one person ready to bid for the maximum reduction rate of 25% of sala, then KSFE will conduct a draw and the lucky one will get the bid amount. This means that you luck also at the time of urgency to get the chit amount.

Now let us see the case of a longterm chitty. According to KSFE, for a chit of Rs 1.8 lakh for a term of 90 months the total repayment will be about Rs 1.35 lakh.

A home loan of Rs 1.35 lakh for a term of 90 months at an interest rate of

10% will have an EMI of Rs 2,138. The total repayment will be Rs 1.92 lakh.

Suppose a person joins a KSFE chit with sala of Rs 1.8 lakh for a term of 90 months. He wins the bid in the second month at a reduction of 25%.

He gets about Rs 1.35 lakh. His total repayment is Rs 1.35 lakh which means that the interest rate is zero.

This is not believable. This will happen only when every bid is won at the maximum reduction of 25%. The maximum total payment to a chitty is expected to be 90% of the sala according to KSFE. If so, for the above-mentioned chitty, the total payment will be Rs 1.6 lakh which is equal to a home loan at 4.62% interest per annum.

Therefore it can be fairly assumed that for longer periods the chitty will be a low-cost borrowing option compared to bank loans. The only drawback is that you are not sure if you will win the bid when you require the money. All the above analyses were done on the basis of winning the bid at the beginning of the chit. But if you win the bid after a few months, then you have to take into account the interest that you would have got if you had saved the instalment amounts in a bank RD account. So if you have taken the chit for borrowing, then you should try to win the bid at the very beginning as it will be profitable for you.

(Sanjeev Kumar is Managing Director, Progno Financial Planning Systems (P) Ltd)

27 27

LEISURE

P D Johnny

“I

f there is a heaven on earth, it must be here” — these are the words used to describe Kashmir Valley in one sentences. If Kashmir Valley is called thus, it is only due to its beautiful natural endowments – the Dal Lake, snow-clad mountain ranges, unique vegetation and eye-catching gardens where all kinds of flowers bloom. Conversely, Las Vegas in United States of America also is called “paradise on earth” for different reasons. This city, located in the Nevada state of USA, can be described as such, considering the ample opportunities made available to the rich and famous in the world, to enjoy life, by catering to every imaginable need of its visitors. Unlike our own Kashmir, natural endowments hardly exist in Las Vegas. Historically a desert like place it has been converted into a man-made paradise to attract those pleasure-seekers who can fulfill the needs by spending money lavishly.

The creation of infrastructure for entertainment in Las Vegas is of relatively recent origin during the last quarter century and is attributed to the imaginative entrepreneurs, ably aided by the state and federal governments. The most important and noticeable feature is the existence of basic means of hospitality, namely the largesized hotels and posh restaurants in the city. Most of the hotel chains in the world have made their presence in Las Vegas. But mind you, these hotels and restaurants here are not meant for simply staying alone. Here the visitors are not doing business; they flock into the city to enjoy life in every possible manner. It is a ‘no holds-barred’ place where nothing is illegal except perhaps crimes like theft and murder. Gambling in public, which is banned in most of civilized countries, is legally permitted here. In fact, when you enter any hotel or restaurant, the first noticeable feature are the facilities for gambling.

Poker, roulette, etc. are only some of means of gambling there.

These Casinos with all facilities for gambling are an integral part of all hotels and restaurants as also are the main attraction here. This author had an opportunity to have a glimpse of

the dream city of Las Vegas recently.

Having seen many cities in Europe and Asia [and also major cities in USA itself], this dream city unfolded an unbelievable, dreamlike experience. On exiting from the airport itself, one gets a fair idea of what is in store for the visitors. The ambience just outside the airport provides a replica of the types of entertainment awaiting the tourists.

The publicity materials displayed there on behalf of the hotels, restaurants, night clubs, bars, rock shows, etc. are so inviting and tempting, even for a discerning tourist. What attracts the millions of tourists to Las Vegas can be fathomed at the very first entry itself.

Of all the means of entertainment, the night-life which is the most attracting and revealing, takes the cake. In fact, the city gets livened up in the late night. By moving around the city at that time, one can find the streets getting more and more crowded and noisy as the night progresses. People from around the world, in weird attires, many of them semi-clad, are found loitering, singing and dancing in the streets. Some of their acts may seem to be vulgar and obscene for us Indians. Even in the middle of streets, we can find men and women in drunken state, singing and dancing to the loud music, mainly rock music. Past midnight, the activities reach the climax and many of the singers and dancers shed whatever little clothes they wear without any inhibitions. Blinding lightings and deafening music, provide colour and verve the atmosphere, continuing till wee-hours.

All hotels provide facilities for their customers for drinking, dining and gambling. They also arrange rock music concerts performed by famous groups. The affairs in the casino or gambling pool, usually located on the ground floor for easy access, are managed by the conductors who help guide and control the gambling activities. For facilitating settlement of money transactions, large number of counters, resembling those in banks, function for 24 hours. In lieu of hard cash, tokens are used. These tokens can be collected from the counters

by paying cash or using credit cards.

At the end of the game, the retiring players can exchange the tokens at the same counters. If one is not lucky enough in any one particular game, he can move over to another and so on.

The disputes, if any, in the course of the game, will be settled at the intervention of the conductor who acts as umpire. Drinks and food are served during the course of the game itself to avoid interruption.

Las Vegas has a very effective communication and transport network.

Open top buses are plying within the city for the benefit of budget tourists to visit various attractions in the city. In addition, the Vegas Monorail connects the major hotels, restaurants, night clubs, casinos and shopping malls located in different parts of the city.

Some of the hotel chains provide their own monorail service for their customers to facilitate their quick and smooth movement. This author stayed in Hotel Excalibur which formed part of a hotel chain including two other hotels helped us in quick movement between them.

There are ample facilities of shopping for the tourists. Every hotel has a shopping area, normally on the lower floors where one can shop for high end products like designer brands of dresses, cosmetics, watches, bags, fashion accessories, souvenirs, etc, needed usually by celebrities. Common people may be inhibited by the exorbitant prices which, however, do not deter the rich and famous class

of society from going for such articles.

As the city is invaded throughout the year by millions of such customers and shopping is a main item on their agenda, ample facilities are provided in the outlets. Budget tourists can afford to do window-shopping.

Other attractions include Madame Tussaud’s wax museum where one can see (and even touch and photograph with) the life-like wax statues of many celebrities. The adventure-seekers can try sky-diving from helicopters.

By opting for a helicopter ride, one can see the highlights of the city at night.

The Grand Canyon, the world famous natural wonder, is located not very far from Las Vegas and regular visits by helicopters and coaches are arranged by hotels and tour operators.

Many hotels arrange shows in the evenings for the visitors free fo change. Those shows include musical water-fountains, light and sound shows, tec. The luxurious ambience of the major hotels itself is eye-catching and therefore, worth seeing. After visiting many nature-endowed tourist locations around the world, the Las Vegas experience is a different one. There are more such locations – Genting Highlands near Kuala Lumpur in Malaysia is another example of man-made paradise. A one- time visit to such ‘heavens on earth’ will also give an idea on how the rich and famous people spend their leisure time and easy money for pleasure.

March 31 - April 30, 2014

PASSLINE

Skilling: Driving force of economic growth 28 A Amalgam of politics and economics BOOK REVIEW

sia Pacific region in poverty reduction. Several initiatives of Govt. of effective, based on recruitment forecast organisais the engine of Kerala in skill development has become model for tions can recruit the required numbers and put them global economic growth in the other states, one of such preventive initiatives through the skill development programs under the recent years, India plays ASAP (Additional Skill Acquisition Program) which NSQF with organisation specific customised plug in a major role in the re- helps the students at the Plus 2 level and Gradu- module to make the program more effective. This gional as well global eco- ation level to get trained on the inudstry oriented helps the organisations to reduce recruitment cost nomic growth. Innovative sector specific skills which will bridge the gap of em- and attrition rate.our multi-national country, ruled by an find answers to the counter-questions vakia in the early 1960s the author approach towards skill ployability, this program also addresses generic asked bythe Einstein in 1998 while pubexplains how enterprises reforms, the influEmergence ofanti-people IT industrycoalition is one ofunder the great exdevelopment paves way employability skills like communication and presenlishing Why Socialism? The author inspired by Khrushchev, weakened ence of global monopoly capital”. amples of economic growth through skills.

As India for the high growth busitation skills.

Another curative under the does not hide hisLaintention to remind grassroots-level democracy and led initiative has the skill edge over other turning countries which made ness environment which Virtually Peter Drucker’s bour department provides opportunity for the unemto the hegemony of the outsourcing industry to target India for all their knowledge worker to professional creats large employment ployed youth to acquire employability skills under a self-seeking intellioutsourced activities, moreVijayachandran than cost advantage worker, points skill out potential.

- Kerala Academy for Skills Excellence.

KV Vinayarajan gentsiaKASE over socialist plays a very important role to become anofoutsource how such theories are relevance society, its economy, The accreditation of With all these initiatives to skill 500 million people destination. The to IT the skillsconcept of India way forparIT of paved public-private government and vocational training providers and certification plays focusing on the future requirement is a great initiaindustry growth which in turn changed the lives ticipation in the Indian context.

He even political system. a very important role in making the skill developtive in making If thethe drive to skill 500 million analyses practice of corporate soVijayachandran ap- India becoming the skilled workforce of millions of youth.

Khalid ment systemMalippuram more effective.

India as on date preciates has supplier to the world.

Forecast projects requirement youths is properly implemented then it opens door cial responsibility from a political perBolsheviks devised a strong mechanism to addres this issue 56 million workforce across globe whereas for industrial growth, creates ample employment opspective.

Being an authority he deals for the of liberation of skilled a through the NSQF(National Skills Qualification in detail with the Indian power sector, India will have 46 million surplus skilled workforce, portunities which leads to higher per capita income hundred big and small giving a separate chapter for nuclear Frame Work). erestroika, Glasnost and So- nationalities this is an from India advantage position to be the skilled and economic growth.

Let us all in the skilling eco power development.

For the developforce supplier to the globe. system, involved directly or indirectly put in all our oppression as cialism published by Patridge Czaristwork Sector skill council for various sector has been ment of Indian railways he pleads an efforts to make the skilling industry more effective India, the well-known Penguin Random a corollary conducive formed to coordinate with corresponding sectors to The issues which needs attention as on date in and productive toaltogether new track which is highly make our country an economic company, presents an altogether new to socialism. He looks understand the industry requirement job role wise the skilling space is coming together of all the stake super power. refreshing. perspective on topics analysed and back to the unprecto make the skill training more effective and inudstry holders to make the skilling eco system more effecis sure to draw the attention of social edented socialist exon the toofficial agricultural oriented, co-certification under NSQF with sector tive and productive. Without the effective participaAt SB Global, we Also, look forward serve the indusscientists, economists and engineers. periment from 1917 development programme he makes skill councils has made the programme more valution of the industry in the skilling initiatives, we may try by addressing the specific skill gap issues they Though fellow-travellers are plenty, and explores how provocative theorizations.

Anti-corable to allnone stakehas holders. not realize the required outcome.

Industry is to come face as on date and help them to drive the business so far dealt with the subject these experiences— ruption activists will find the chapter forward to beofan effective partner in skilling initiatives better and grow faster. of the title of the book so intensely and the establishment on historical perspective of corrupStructured skill development programs will en- by associating with the training partners. “Pre- Hire” interestingly. Perhaps the tenure of a multinational socialtion interesting. Pleading for a sure creating skilled work force which in turn helps training to be the mantra to make the system more (Author is CEO of very SB Global). engineering training in Czechoslova- ist state encompass-

P

ing a truly diverse multitude of peoples tion could be to stimulate an interest in and its industrial and self employment or entrepreneurship. social development— (From page 26 ) Kudumbasree has blazed a new trail in Job could seekers job be of to great rel-givers Knowing the author may help one evance to a country women’s empowerment and in creating Kerala has a deep rooted culture of self help groups. This model needs to istered withtothe SSCS and only them understand his radical views in the like India. He makes its people wanting government jobs. A be encouraged amongst all those who can they train for those pro-a degree rightpeople perspective.

Afterjob getting his views clear on a classic indicator thefederal huge number of are opting for some of these skill deflying colours was the selected as genuinelyistrue files. What with is pertinent here he is that applicants appearing for the PSC tests velopment programmes. The start Up an engineer on by all-India same curriculum will betrainee followed all basis set-up of governance for BHELacross and remained in Czechosloand aspiring for aofclerical job. The ironyPerestroika, training providers India. There in place the highly and Socialism village atGlasnost Kalamassery is a role model vakia forevaluation most of theand training of the situation is thatauthoritarthe applicants in- for the centralized By:youths K Vijayachandran are standardised as- period. of Kerala. The state has While working at as Tiruchi powerclude boil- Mian Phil, Postgraduates rule now existing inand even [ISBN: E-book 978-1-4828-1352-4; sessment methodologies wellonthat also responded and set a new trend by ers, he was shifted to Delhi as the co- However Delhi.

Soft cover 078-1-4828-1353-1] MBAs. much the government are conducted by independent agenallotting 1 % of the state budget to enordinator for a clean coal technology cies. Logically, the respective indus- tries, it just cannot provide jobs for the courage startups. As the CM of Kerala As pointed out in the preface the programme. He initiated a campaign the readers, his co-patriots, of the unin Kerala. Hence, one optries have assured that they would give multitudes mentioned, one of the desirto against the long-term broadbased col- author makes an earnest attempt recently finished task of “national liberation of preference laboration for hiring proposal from thiswith poola offortrained manpower. eign multinational. This was a the time-tested The gapdeviation betweenfrom industry partners policy of need-based technidirect participation in the skilling activcal collaborations and the proity and the real time scenario is huge longed struggle led to his resigand has to be filled. Industry players nation. Later he settled in Kochi should be with moreindependent proactive in indicatresearch deing their requirements and encourag-He velopment and consultancy. ing pre- hire training.

Most companies had in the meantime served the want to reduce the time andof costs Left governments Keralaofon training after hire.

If one were to in look three different occasions variat the examples of Infosys , Wipro, ous capacities. kia would have come in handy for the author, K Vijayachandran, to study the socialistic pattern being subjected to change at close quarters.

Companies want to cut time and cost

paradigm shift for industrial development of Kerala, he shares his valuable experience as Chairman of the able goals of the state is to transform Kerala State Industrial Development the youths from being mere job seekThe chapter ersCorporation. to job givers.

That wouldon be‘Rapid a real Loss of Capacity to Govern’ should game changer for this small state. serve as an eye-opener for planners and in Kerala and SB administrators Global, as thealike NSDC partner in other states as well.

Eyebrows may Kerala, has taken on the challenge of be raised many while reading the Skilling and by Upskilling over 1,00,000 chapter on the new apartment culture people and is actively involved in supwith an porting theeconomic efforts ofrationale. the government of

India as as the State government Thewell book deserves a thorough in locations across Kerala. study by everyone, political enthusi( Balachandran is CMD, SB Global, asts as well as social activists.

Kochi) (malippuram@gmail.com)

TCS etc, the gap becomes obvious.

The bookspend contains 20toarAll these big IT majors close ticles, of which 11 appeared for USD 5000 on re-training the hires. This the first time in PASSLINE. The is in spite of the fact that the cream of lead article, ‘Reaction Strikes each college are thewas ones whoon arethe seEurope’, written eve lected to these companies.

So skilling of the disintegration of the Sois not just cialist for trades enhanceCampalone, and collapse of the ment of skill sets are required for EnUSSR. Quoting documents and gineers, MBAs, andpersonal many other basedCAs on his expericategories ence as well. of the Eastern European situation while in Czechoslo-

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March 31 - April 30, 2014

Jan 31 - Feb 28, 2014

PASSLINE

29

ON THE ROAD

HYUNDAI SANTA FE – EXTREME STYLE STATEMENT

By Maneesh T M

S

anta Fe has been adorning the role of Hyundai’s flagship since the launch in India. It was the second generation of the SUV which came to India in 2010. By the way, we received each and every car from Hyundai without any forgone conclusion. But, being an Indian customer and when the choice list pointed towards SUVs with a limitless budget, we preferred luxury brands. Hence, the past SUV models from Hyundai never reached their specified sales targets here. Santa Fe is back with a big bang. Let’s go for the drive.

The name Santa Fe comes from a city of Mexico with the similar name.

From the beginning stage itself, this full size sports utility vehicle became a hot cake in the US market. While evaluating the exterior look at a glance, it is clear that the fluidic design has got a complete impact on the body shape of Santa Fe. From Verna to Grand i10 and from i20 to Elantra and Sonata, now the design language is successfully united as a family seal. The exterior became not just a bit more stylish, but the overall structure shows vigour styling. The basic design has achieved a round shape and flow of its kind.

Height of the vehicle is lowered by 45 mm and comparatively increased the length too. The hexagonal family grille is one of the trademarks of Hyundai model range now a days. Three vertical chrome slats are bold and beautiful. Headlamps, which are designed in a swept back manner and the large fog lamps with honey comb covering has again increased the style statement of the SUV. The bottom part of the front bumper is left unpainted and a silver skid plate is also given. The lines running through the body seems soft and feels light. For giving a rugged look, plastic body cladding is given to the wheel arches. Door handles are also gifted with chrome to take up with the chrome theme. To suit for the sloping roofline, the third row quarter glass is designed in angular mode.

Black roof rails and audio antenna are standard equipment. The large windows still maintain the ruff and tuff look of a full size SUV. From the back view, we feel that this is the right way to design Santa Fe’s rear in an appearance which blends equally with the face and sides. At present, this vehicle owns an aggressive looking spoiler with stop lamps. In the case of build quality and paint finish, Santa Fe achieves a noble image in all means.

The cabin calls you to a new world of

luxury. Dash is made of beige-brown useful. The second row seats too are duotone soft plastic material. Rather adjustable with sliding features. Foldthan the leather upholstery, you can ing cup holders come along with the see wooden inserts on the dash and arm rests. The third row is designed door pads. A/C vents are constructed for short journeys and children. In the in angular style. The steering wheel segment including a group of major gained every type of multifunction rivals, Santa Fe scores inch by inch controls. Seats are also made in high for the safety features and finest build quality leather. A touch screen colour quality and finish. display is included Hyundai offers for the multimedia three variants for the Hyundai offers three information. With all new Santa Fe. 2 variants for the all new Sandual tone climate ta Fe. 2 Wheel drive manuWheel drive manual, control, the rear al, 2 Wheel drive automatic 2 Wheel drive autoseat passengers and 4 Wheel drive automatmatic and 4 Wheel get air vents on ic versions are available drive automatic verthe B-pillar. A sinin India. The vehicle which sions are available gle CD mp3 unit we selected for the drive in India. The vehicle comes as standard was the top end four wheel which we selected equipment with the drive automatic. for the drive was the radio. For phone top end four wheel and wireless Bludrive automatic. etooth streaming, USB, AUX and Bluetooth connectiv- This huge mill under the hood gives ity features are available. Automatic out 194 bhp@3800 rpm and an eftransmission stick comes in leather ficient torque of 445 nm@1800-2500 with elegant glossy finish. Driver seat is rpm. The three variants listed above electrically adjustable for height, reach carries a 2.2 liter CRDI diesel engine. and slope. But for the front passenger The manual variant is mated with a six seat, it can be adjusted manually. The speed manual gear box while, in the large front seats give support enough automatic versions, a six speed auto for the shoulders and under thigh. The gear box is fixed up with the engine. lockable centre storage box between After igniting the engine with a button the front seats and a glove box which start, you will sure recognize the reis built with cooling function seems finement of the engine at first. Outside

noise never disturbs the cabin and the Korean brains had worked hard to make the cabin super silent. Pure and sudden power delivery makes this vehicle ease to drive in tough roads as well as rocky regions. It can be driven in three various modes such as comfort, normal and sport modes. For hilly areas, sports mode will make your drive highly enthusiastic and on highways and cities, comfort mode is more better. You can increase the steering weight up to 20% by the help of ‘flux steer system’ in accordance with the mode you are driving. Safety features like differential lock, stability control, traction control, 6 airbags etc casts Santa Fe in the list of safe Sports Utility Vehicles. ARAI figures says that the 2.2 liter manual engine would give a mileage of 14.74 kmpl and the automatic variant would bear 13.01 kmpl.

Kochi ex-show room price for the base 2 wheel drive variant costs Rs 26 lakh and the 4 wheel drive automatic version costs Rs 29 lakh. To conclude, if these offerings are true, just expel from the ‘brand value’ superstition.

Then, who is the rival to fight against Santa Fe? Vee Tee Jay Motors (P) Ltd and MGF Hyundai are the dealers of Santa Fe in Kochi (The writer can be contacted at maneeshtmtlc@gmail.com)

March 31 - April 30, 2014

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I

n today’s fast-moving world, it is more significant than ever to endorse recognition of a product or service. Branding is a great way to promote this recognition because people are busy and have a propensity to stick to familiarity. If consumers distinguish and remember the product they have used once and they are satisfied with the used product, then they will choose the same product again and again.

The process of branding is mainly done by an organization, business or product to identify goods or services provided by them and to propagate a message to customers that only their services and products can suit their needs. A company or product is identified by its unique logo or image it uses for its branding and it separates competitors and help consumers remember the product. This increases the product’s visibility and hence increases its sales by making it more desirable to consumers. More than a logo or a product, branding is becoming a promise of quality and status. It covers everything about a company, sometimes good and sometimes bad, depending on the public’s perception.

Throwing light on the advantage of and need for branding and how branding can be done successfully, the Confederation of Indian Industry (CII), Aruna Sundararajan Kerala Chapter, recently organized the Brand Summit 2014 in Kochi. Inaugurating it, Aruna Sundararajan, Managing Director of Kerala State Industrial Development Corporation (KSIDC), said “branding is all about identity and values. It gives a distinct identity to the product and a deeper set of values to it. In our

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country the tourism sector has already created a brand like ‘Incredible India’ and in Kerala ‘God’s Own Country’.

But improvement and branding should be promoted in other sectors also. The State Government’s plan is to promote Kerala as a national and international brand, and the seed capital for the new strategy has been provided in the state budget. The new policy would influence the ‘green and clean’ image of the state to promote industrial growth.”

The strategy, Sundararajan said, would focus on promoting environment-friendly industries such as organic fabrics, organic packaging materials and knowledge- and technology-based industries. “The state is following the best labour practices and values and the Government will soon set up startup villages exclusively for women entrepreneurs,” she said.

“Every brand has a unique characteristic. It creates user loyalty, and it motivates the buyer and connects with the customer.

Differentiate is the key characteristic of a brand like Superstar Rajinikanth. He himP C Balasubramanian self emerged as a brand and he has done his branding like no other stars. He had done 55 films in just four years and 20 in 1978 and has always created his own unique style to grab people’s attention. So I prefer the Rajinikanth way of branding. Focusing on the compelling aspect of human character, the emotional branding is done to attract people,” said P C Balasubramanian, Executive Director and President of Matrix Business Services India Pvt Ltd and co-author of Grand Brand Rajini-

March 31 - April 30, 2014

-Brand Management, the Rajinikanth Way. “What makes a brand? Each brand is like DNA, which makes the brand strong and never changes the history of the brand.

Brands should replicate Manish Saksena themselves in each cell exactly as DNA does. The reason for the existence of each brand has a purpose and it gives an assurance to the customer to deliver the perfect product,” said Manish Saksena, co-founder and President, LimeRoad. com and Adviser, Tommy Hilfiger.

About digital marketing, Joe A Scaria, journalist, speaker and trainer, said that idea and technology were going to bed like never before in history.

“Some drastic innovations and changes in digital marketing will soon hit the country.

Joe A Scaria Today most people are tech-savvy and that itself is a good thing for digital branding.”

“Branding can be done in a better way through digital marketing, which makes use of electronic devices such as personal computers, smartphones, mobile phones and tablets. Digital marketing applies technologies or platforms such as websites, e-mail, apps and social networks. The consumer can access information from anywhere and whenever possible. Also there are many challenges while doing digital marketing such as proliferation of digital channels and a variety of digital devices make it hard to manage digi-

tal marketing,” said K P Sunny, Deputy General Manager (IT and Operations), Federal Bank.

Shyam Srinivas Bank.

“Brand is all about socially relevant, ethically right and environmentally sensible,” said Shyam Srinivas, Chairman of CII Kerala and Managing Director, Federal

“The Sobha brand has already created a strong branding and today it is one of the largest real estate players in the country.

We have so far built 58 million sq ft or around 20,000 homes.

From construction to delivery of P Ramakrishnan a project we do everything and also we are planning to build 70 million homes in the next seven to eight years. Once you bring or develop a brand you have to monitor it regularly,” said P Ramakrishnan, Deputy Managing Director, Sobha Developers ltd.

“More than 25,000 new products are introduced every year in the world. Therefore it is really tough to maintain a brand, so you have to be up-to-date with the customers and always active and in touch with C P Mammen the outside world. Only then can the branding be successful,” C P Mammen, Managing Director, Mr Butlers and CCS Technologies Pvt Ltd, said

31

SNM IMT Bringing out talents S

ree Narayana Mangalam Institution of Management and Technology (SNM IMT) is one of the pioneers among the self-financing institutions in Kerala. Approved by the All India Council for Technical Education (AICTE) and affiliated to M G University, SNM IMT is run by the Hindu

tronics and Communication, Instrumentation and Control and Computer Science, Recently, the Department of Mechanical Engineering of SNM IMT has organized AIME14 --Advances in Mechanical Engineering—a national level conference and Gyaan-14—a

HMDP Sabha, also spoke. T S Sreejeev, President,HMDP Sabha, A R Vijayakumar, Secretary, HMDP Sabha, K S Balasubrmaniam, Man-

A R Vijayakumar

Matha Dharma Paripalana Sabha (HMDP Sabha) which was established in 1882 under the guidance of Ashtaavadhaani Parisuddha Visishta Adwaitha Paramatha Venkatagiri Sasthrikal, a Telugu theologist who pioneered the Hindu Maha Parishath Movement. He was the founder president of HMDP Sabha. Motivated by the teachings of the great reformer, Sree Narayana Guru, a number of educational institutions were established and run by the Sabha.

In its 12 years of existence, SNM IMT has grown with excellent and well developed infrastructural facilities, offering 6 undergraduate programmes, namely BTech Mechanical, Civil, Electrical, Elec-

technical fest. The fest brought together researchers from academia and industry which provided an excellent opportunity to explore advances in areas related to mechanical engineering. This fest provided a platform to showcase and observe the latest researches, ideas and development in the mechanical engineering. In addition to paper presentation, keynote address by experts was the highlight of the event. Prof George Thomas, HoD, Mechanical Department, SNM IMT welcomed the gathering. T S Sreejeev, President, HMDP Sabha presided over the function. Dr Sreejith P S, Director IHRD, delivered keynote address. A R Vijayakumar,Secretary,

T S Sreejeev

P A Rajan

ager, SNM IMT were the patrons of the meet. P A Rajan, Principal,SNIMT was the chairman of the conference, N K Sidharthan, Vice-principal,SNM IMT was the co-chairman, George Thomas, HoD ME Department, was the Chief Convener, Arunkumar N D, Asst Professor, was the Organizing Secretary.

Prizes were distributed for best presentations on Mean Machine- Rs 15,000; The Mechanic—Rs 6,000; CAD Maestro-- Rs 4,500, Brain Bites—Rs 3,000.

There was auto exhibition and fun zone programmes as part of the fest.

Motivated by the teaching of the great social reformer Sree Narayana Guru, the Sabha has established a number of educational institutions since its inception—SNM College, SNM Training College, SNM M Ed Center, SNM High School, SNM Higher Secondary School, SNM Teachers’ Training Institute, SNM Elementary Teachers’Training Institute, SNM Private ITI, SNM Lower Primary School and SNM Public School. “ The Sabha has been relentlessly supporting the downtrodden and outcaste sections of society through educational institutions by providing fee concession and other privileges,”says A R Vijayakumar, Secretary, HMDP Sabha.

Situated in a sprawling 45-acre site the institute is at Maliankara, a village 3 km from Moothakunnam, on NH 17 between North Paravur and Guruvayoor. The serenity of the atmosphere and the greenery make the institute an ideal destination for education of the highest standards. The institute is just 25 km from Kochi and 45 km from Thrissur.

March 31 - April 30, 2014

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NEWS

All new Chevrolet Beat from GM

G

eneral Motors India launched the all-new Chevrolet Beat hatchback priced between Rs 4.12

LPG engine. Top variants come with front dual air bags, anti-lock brakes (ABS), and Electronic Brake Force

INJACK to connect Kerala SMEs with Japan

J

apanese ambassador to India Takeshi Yagi, inaugurated IndoJapan Chamber of Commerce Kerala (INJACK), a new not-for-profit organization to connect the small and medium enterprises (SMEs) in Kerala with Japan. The organization would spruce up SMEs in the state cutting across all sector including manufacturing and services such as information technology and tourism. The organization will have both corporate and individuals as members.

T Balakrishnan, President of the Chamber, said that the organization will act as a catalyst for strengthening trade relations, promote bi-lateral trade, facilitate investment and technology transfer, joint ventures, business collaborations and strategic tie-ups. INJACK will focus on strengthening opportunities for businesses in Kerala to form strategic partnerships and joint ventures with business entities His excellency Takeshi Yagi (Japanese in Japan. The genesis of Ambassador to India) inaugrating Indo Japan the organization lies in the Chamber of Commerce Kerala vast potential Kerala has in companies in India has reached 1,072 the SME sector.

“The economic relation between Japan and India has been expanding consistently. The number of Japanese

lakh and Rs 6.21 lakh (ex-showroom, Kochi) in ten variants and with three fuel options.

The Beat is available with a choice of eight exterior colours such as Super Red, Cocktail Green, Sandrift Grey, Switch Blade Silver, Summit White, Misty Lake, Linen Beige and Caviar Black. Also it is offered with a choice of three fuel options (petrol, diesel, LPG), has an ARAI-certified (The Automotive Research Association of India) fuel economy of 25.44 km/L, 18.6 km/L for the petrol engine and 13.3 km/L for the

Distribution (EBD). “The Chevrolet Beat is GM India’s best selling model.

We are confident that with the new aggressive styling and added features for convenience and comfort, the Beat will continue to standout in the market against the competition. The all new Beat has refreshed styling that sets a new standard for the hatchback segment. A trendy new chrome-accentuated front grille with Chevrolet’s aggressive dual-port design theme highlights the upgraded exterior,” said P Balendran, Vice-president, General Motors India.

Lulu Mall completes one year in Kochi

L

ulu Mall, the most favoured shopping destination in the city, has completed one year of its operation. The mall has already paid 34

crore as tax and nearly 2 crore people has visited mall according to a press release issued by Lulu. The mall is currently home to 176 outlets comprising 52 international brands and it directly employs 4,600 people and employs 6000 indirectly.

“The group has also planned to launch ten new shopping malls both in Kerala and outside the state. To strengthen its retail and export busi-

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ness, the company will start a logistics centre and cold storage facility in Aluva. Lulu presently has 109 hypermarkets and shopping malls across West Asia, plans to open 42 more hypermarket within next two years in UAE, Oman, Qatar, Kuwait, Bahrain, Egypt and in Saudi Arabia.

Also we are planning to start more business in Indonesia, Iraq, Algeria, Morocco and Libya. With the end of this year the number of Malayalees working with the group will reach 30,000,” said M A Yousuf Ali, Managing Director of Lulu, inaugurating the first anniversary of the mall.

As a part of the anniversary, a week-long celebration was launched in Lulu, followed by Lulu retail awards for the best performing retailers across 20 categories and also a ‘shop and win’ contest for the customers till March14.

March 31 - April 30, 2014

in 2013. Though there are 15 Japanese companies operating in Kerala, the number of branches set up by Japanese companies has almost doubled from 53 to 105 in the past one year.

This shows that Japanese companies are establishing stronger foothold in recognizing its vast potential. However, Indo-Japanese bi-lateral trade is a paltry $ 20 billion or 2% of India’s total trade, which is far below the potential,” said Takeshi.

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Super Fibre Glass: mulling for diversification T

he spirit of entrepreneurship, it seems, is inborn. Otherwise how will one after getting much experience in his employment would venture to his own enterprise. This interpretation is much akin to T Unnikrishnan of Super Fibre Glass Industries(P) Ltd in Kannur, started in 1989 as a proprietorship concern. Unnikrishnan has to undergo various time-tested experiments before arriving at his niche area. He was a low profile entrepreneur by starting Shankar Shutters in 1985 with a financial assistance of Rs 25,000 from Syndicate Bank and Rs 25,000 from his own pocket. The low capital and low turnover did not satiate his urge of striving for something bigger. Then, he trod on different terrain by taking up distribution of Festel water tanks from three destinations- Kannur, Mananthavady and Kasaragod. His distribution network was fast and fastidious as the supply side could not cope up with the demand. In order to overcome the lacuna he committed himself to manufacturing his own water tanks under the brand name Suprimo. As diversification is his motto he sidestepped in the manufacture of doors, frames besides water tanks. His brand is now one of the well known brands in Kerala.

He is also a franchisee of Idea Cellular from 2010 in Kannur district and started manufacturing Malabar flex in 2012.

In 2013 started another unit of flex in Sreekandpuram.

by working in a couple of companies leveraged his calibre in entrepreneurship.

After his education in ITI, Polytechnique holding a diplo-

ma in engineering (DME) he worked in different companies in Bombay during the years from 1978 to 85.

T Unnikrishnan

Unnikrishnan is a workaholic . As the early bird catches the worm, Unnikrishnan is an early riser at the wee hours of the day to ride his Bullet to reach his customers to secure the orders first for his business. Known as a reputed business man he is also

a socially committed person. He is president of the NRI Relief and Welfare Cooperative Society, NSS Kannur Karayogam president and Block panchayat member.

As a man bent upon diversification he is mulling on diversification always in new areas. His family comprises wife Deepika, daughter Anjali , son Arjun son-in-law Mukesh

The turnover of the company is now running Into crores of rupees distributing products outside Kerala in Managalore,Coimbatore, Mysore with the able support of nearly 100 employees in different units.

The experience he gained as an employee March 31 - April 30, 2014

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34

Krishna Jewels inherited gold business I

CVR is a person of simple living magine Lord Krishna visits your abode. How ecstatic will you be! and humble dealings that is why he The people of Kannur view Krishna steers the gold dealings in a small room Jewels with such a mind. Lord Krishna away from the mansion and manages may hug you, bless you. Let it be juve- his crores of rupees business without nile Kannan (Kunhikannan).You may a computer or mobile phone by humlong to cuddle and coddle the cute ming to the romantic voice of the late boy. Krishna Jewels first appeared in Kishore Kumar of Bollywood and the Kannur as Kunhikannan Jewellery in thrilling songs of the late Sounder Ra1985. Kunhikannan had only a stock jan of Kollywood. of mere 700 grams of gold in a 200 It is his sq ft show room. wife Sudha People pampered CV Ravindranath man with who manages and fed KunhiMidas touch the house in kannan to be accordance Krishna Jewels C V Ravindranath was born in with the tastes to grow with 300 Colombo, Sri Lanka, in 1954, to an of CVR. Ravkg of gold jewelaffluent family doing gold business. indranath is lery in a 24,000 He is an alumni of St Michael’s Anproud of his sq ft seven floor glo Indian High School, Kannur, PSG three daughshowroom built in College of Technology – Coimbatore, ters who are April 2013 withInstitute of Hotel Management – part and parout using a single Mumbai, School of Hotel Adminiscel of his enlog, stands as tration – Cornell University, USA, deavour. Elan architectural Gemological Institute of America, dest daughter marvel of Tantric USA, Indian Institute of ManageSunitha, the design to imbibe ment, Ahmedabad and Indian School CEO of Krishthe spiritual enof Business, Hyderabad. He has got na Jewels, ergy. It was a three post graduate degrees to his is the wife of dream come true credit: Hotel Management, PhilosoRajeesh Nair, for CVR alias C phy & Religion, and Peace Making & music director V Ravindranath Gandhian Thought. and an alumni who gave a Midas of Chennai touch to all the inLoyola Instiventories in Krishna Jewels sustaining tute of Business Administration holdits hallmark for three decades without ing PhD in Spiritual Management. compromising purity and quality.

Always crowded Kunhikannan Jewellery’s change in name and location to Krishna Jewels became the footfall of more customers because there was no difference in the` old is gold’ trust reposed in CVR by the people.

Second daughter Sanitha is an MBA in Hotel Management with distinction. Made higher studies in Toledo University in the US. Youngest daughter Shuba Ravindranath is a student of MBA in Manipal University,

a winner of gold medal in jewellery management and designing. Krishna

Jewels has the ornaments designed

by Shuba.

C V Ravindranath with his family

For excellence in business and social commitments, he was awarded Rajiv Gandhi National Unity Award, Udyog Pragati Award, India Forward Award, Jaycees Millennium Young Businessman Award and the North Malabar Chamber of Commerce’s Outstanding Trader Award-2003. He was India’s first jeweler to obtain BIS certification for Hallmarked gold jewellery.

C V Ravindranath

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March 31 - April 30, 2014

March 31 - April 30, 2014

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35

Achieve your goal by financial planning Passline News Service

M

alayalees know how to make money but a majority don’t know how to manage it. It is everybody’s wish to spend their hard-earned money in a wise manner. Financial planning helps one to utilize one’s money in a proper way. Financial planning may appear to be an unfamiliar term to many but if we grasp its meaning properly it would become an inevitable part of our life. Should not we live comfortably without others’ help after fulfilling our responsibilities like providing good education to our children? Financial planning is a system of finding ways to lead such a life. One need not be scared of this term. What we have been practising unknowingly so far, we can do knowingly now.

Our forefathers were really great financial planners or financial consultants. It is because of their financial planning that we, their children or grandchildren, are able to live a rich life. They looked after us well forsaking

many comforts in their lives. They gave up many good things in life and toiled very hard to provide us with a comfortable living. We are therefore enjoying every moment of our life. We are able to give our children good education; marry them off pompously; build mansions; own cars...all without tightening our belts. Financial planning will help you to have them all. The first step towards preparing for financial planning or becoming rich is to set a goal.

Financial planning to make your dreams come true: We might have different aims in life. And to achieve them it requires money. Money flows in from one side and rushes out from the other. Financial planning is the use of this money in a fruitful manner. Whatever your virtues, if you don’t know how to manage money there will be no peace and calm in life.

It’s not that only we have ambitions in life; our family too has them. If tomorrow we won’t have any source of income we will still have to meet the

it. You might wish to dine out with your family, but could not. Life moves at a mechanical pace. Such people might get a substantial amount at the time of retirement. In fact their life may go on smoothly only after retirement. But by this time, a major chunk of life might have already been spent. Moreover, many might have fallen into the grip of ill health. needs of our family. Should not your children have to acquire good education even in your absence? Should not your spouse fend for the family?

To find the means of running a family then, you need what is called financial planning. Financial planning is leading a life of austerity but enjoying life by saving money. Now let’s think for a moment how our life is now. Are you listed in the middle-income group having a fair income? Then, after all deductions, your take-home pay will surely be paltry. Most of you may be leading a frugal life. You may wish to wear a good shirt but you may not buy

If we can forecast what our future needs will be and how much amount we may need, then we need not lead a miser’s life. The main advantage of financial planning is that it will help us to foresee unnecessary expenses and find the ways to curtail them.

You can enjoy each moment of life with financial planning. Every penny is spent with full awareness. You will not lose any money without your knowledge.

(Courtesy: Dhan ikanaakaan Oru Margarekha (Malayalam) by Sanjeev Kumar G)

March 31 - April 30, 2014

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36

COLLEGE OF COMMERCE C Anilkumar, a pioneer in the field of Higher Education

ing, Journalism, Language and Literature.

C Anilkumar

L

iving by the wisdom drawn from experience and observations, C Anilkumar, Chairman of the College of Commerce, Kannur Institute of Management and Technology and Techno Campus, Kannur, has been a guiding spirit behind the enviable success and reputation of the great educational institution.

College of Commerce, the preeminent private college in Kerala, was founded in 1990 by Anilkumar in collaboration with a group of dedicated teachers. Right from his formative years, Anilkumar had a dream that would help him to contribute to the field of higher education. As a visionary and pioneer in the field of education, he took up the task of promoting the field and providing the necessary infrastructure needed to realize the dream from scratch. He had only his qualification and willpower to make his dream a reality. No challenge in the way dampened or reduced his spirit and enthusiasm.

Besides, the group has plans to start a B-school with global facilities, paramedical studies and a law school.

cation and Business Excellence Award 2013-14 instituted by ITM College, Mayyil, Kannur.

His aims and plans are at the budding stage of starting an online live education centre in association with reputed institutions in India and abroad like the Institute of Cost and Works Accountants of India, Institute of Company Secretaries of India and premier business schools.

From the achievements listed, it is easy to understand why the College of Commerce and allied institutions spearheaded by Anilkumar are considered as the top institutions in Kerala. It is this inexhaustible treasure of experience, knowledge and dedication that has helped shape the College of Commerce and KIMT into what they are today - a harmonious blend of technology and tradition.

He holds the position as Patron of the State Parallel College Association (SPCA) and Managing Trustee of Kannur International Educational Trust (KIET).

Along the line of social responsibility, he has managed to create 300 educational scholarships for financially backward students. He has formed a blood donation forum which could help more than a thousand seriously ailing people. He runs a free hostel for students as well.

Facilities: The College of Commerce, Kannur Institute of Management & Technology and Techno Campus, Kannur, will be pre-eminent insitutions formed to meet the pressing need for higher education. Now nearing itssilver jubilee year, the college has its own building with 70 classrooms accommodating a digital work station, science lab, digital library and computer lab with 400 computers with latest li-

Present status: The Colleges of Commerce and KIMT-Kannur are the frontrunners in Kerala with regard to infrastructure, student enrolment, quality of education and experienced faculty. At present the number of students enrolled is around 4,500. The variety of computer courses offered are matchless. Building facility and well-stocked library are peerless in every sense. The courses of Kerala University, IGNOU, Bharathiar University, Kannur University, C-Dit, KILE and Government of Kerala are offered here.

Aim and objective: To create the landscape of higher education by providing quality education and expanding the reach of higher education in the northern region of Kerala is the institution’s topmost objectives. The institution is dedicated to the cause of empowering the rural people by providing them with better access to quality higher education. The higher rate of literacy in Kerala and the increasing number of students opting for higher academic pursuits have been creating a wide gap between the demand and availability of seats in Government and aided colleges. In such a scenario, the one and only option available for a large chunk of middle-class people is to depend on private colleges. It is here that the College of Commerce serves society, cares for others and addresses the needs and problems of the academic sector.

Vision: The world is fast changing.

The college got tremendous response. It started growing, aided by proper care, nursing, hard work and perspiration.

Anilkumar devoted his career to applying his evidence-based educational wisdom to the newly emerging needs.

An examination of his career shows that he has made vital contributions to higher education such as defining the educationist’s role, serving as a teacher/mentor/network builder and friend to educators. In addition, he has created a house and career path for many professionals.

Considering the acute need to have an internationally reputed educational institution in Kannur, he, along with like-minded friends, started Concord Public School and KIET Arts and Science College at Chalod, Kannur, very near to the upcoming Kannur airport.

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A welfare fund (Karunya Nidhi) is being operated successfully at the College of Commerce for poor and needy people with the help of staff and students. He took the responsibility of organizing the state convention of the Kerala Federation of the Blind twice. This visionary and pioneer in the field of higher education has received awards and achievements including the Indo-Global Award for Outstanding Achievement in the field of Education, the Award of Sooryakantham Social Welfare Society for the unmatched contribution to the field of higher edu-

March 31 - April 30, 2014

censed software like Windows, Linux, Microsoft, Tally, Management software and Broadband facility with Wi-Fi connectivity. The college has separate hostels for boys and girls. The girls’ hostel can provide accommodation for 300 students and the boys’ hostel 60.

The college has its own cab for students’ travel. There is a canteen also.

Courses: The institution offers diverse courses and coaching classes at the graduate and postgraduate levels in Commerce, Management, Science, Hotel Management, Fashion Design-

It requires a great vision to keep pace with changes around us. The collective wisdom of the management, enriched by vision and foresight, does everything possible to stay one step ahead of the time. It shall be the earnest endavour of the management to introduce the most relevant courses in this college and make the passouts ‘industry-ready’ . The managementcshall ever remain solemnly committed to proving the best to the student community at affordable and unprohibitive cost

37

COVER STORY

Sailors Cove: celebrate beach-side living every day P

oised along the shimmering shores of Payyambalam beach, Kannur’s first and only gated and guarded township ‘Sailors Cove’ is the epitome of beach-side luxury.

Mir Realtors’ upcoming township, Sailors Cove showcases a gorgeous beachfront lifestyle that is the first of its kind in Kannur, the city of looms and lores. Unobstructed views of the beach are the main attraction of Sailors Cove which is sure to please those who wish to create a secluded, secure compound for friends and family.

Featuring the tallest 27-storey twin tower apartments in Kannur, panoramic sky villas, ultra-modern duplex, luxurious villas and stylish pool villas, this beach-front, self-contained township captures the essence of a gated and guarded community. Just a few steps away from Kannur’s pristine and sandy beach, Sailors Cove is one of the rarest gems along the seashore. Featuring a vast array of first-class facilities and amenities, it is the largest project of its kind in the Malabar region, blending the carefree spirit of a seaside retreat with the comfort and convenience of city living.

Anyone arriving at Sailors Cove cannot help being charmed by the close-to-nature influence in design.

Beyond the magic that begins the moment you enter its secure gated courtyard, its appeal gets better and better across the 5.5 acres of greenery and magical blue sea. Construction has been restricted to less than 50 percent of the 5.5-acre area, giving more emphasis to open space. The apartments and villas within Sailors Cove are designed to allow in ample sunshine, natural ventilation and pic-

ture-perfect views of the serene sunsets. Every room is enhanced with an enchanting view of nature’s bounty and the interiors are well-crafted to include every single detail without a cluttered feel. The interiors are spacious and meticulously planned so as to optimize natural ventilation, to provide ample lighting, enchanting views from the balconies and fittings of the highest quality. Residents will enjoy utmost privacy as none of the

benefits of living by the beach. Once the entire phase has been completed, Sailors Cove will be the best address in Kannur for those who desire luxury without stepping out of their home.

Mir Realtors is an ISO-certified, eco-friendly builder that pioneered the concept of self-contained, ‘green’ townships in Kerala. The company is the housing development and construction vertical of Mir Group, one

All Mir townships have unique features such as large open space, green surroundings, ambient air quality, rainwater harvesting, waste management, sewage treatment plants and energy conservation system.

windows of the apartments look into each other. A spacious parking lot, unique to each block, is included on the ground floor. Construction is in full spring at Phase I and bookings are open for those who desire the

of the fastest-growing, multi-faceted business houses in South India.

Spearheaded by Indian businessmen with NRIs in Russia and the Middle East, the group is into diverse business sectors: consultancy, hospitality,

infrastructure, life science and energy solutions. Headquartered in Kochi, the group enjoys a wide network of operations in India and abroad.

Established in 2006, Mir Realtors is the first builder to pioneer the selfcontained township concept in Kerala. Within a short span, the company has carved a niche as a key player in the housing development sector.

Mir Realtors is currently engaged in developing housing projects across Kerala on 2 million sq ft. Mir’s signature 6-acre township ‘Green Metropolis’ in Kochi is the first eco-friendly self-contained township in Kerala and features the tallest 32-storeyed twin tower apartment complex in South India. Mir is also constructing the largest township in Thiruvananthapuram, ‘The Greens’, on 12 acres.

All Mir townships have unique features such as large open space, green surroundings, ambient air quality, rainwater harvesting, waste management, sewage treatment plants and energy conservation system. Largescale amenities are part and parcel of Mir Realtors’ townships. The expansive club house proposed within Mir townships, crèche, amphitheatre, cafeteria, supermarket, guest suites, drivers’ accommodation, medical clinic, bank ATM, conference hall and business centre are all designed to enhance the lifestyle of residents

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Capitol Mall

One stop shop for all in Kannur

K

erala is nurturing a culture of malls. Almost all districts in Kerala are endowed with malls. Kannur extols its glory with the presence of the unique retail resort Capitol Mall. The prestige of Kannur is enhanced with 2 lakh sq ft built-up area of Capitol Mall because it was launched

by Emad Builders, the renowned builder in Kannur with an illustrious seal of quality, virtues and values.

One of the largest malls in Malabar, it will offer diverse retail outlets, food court, big anchor shop and kids’ entertainment zone. The mall has been designed to ensure high footfall and the architect behind this is U Mohammed Associates, Kannur. Normally malls are built in a racing lap design, but Capitol Mall design is concentric, which allows shoppers to get around much quicker and easier.

It is also segmented, for example, those shopping for women’s or men’s fashions will find all the relevant stores are located conveniently close to each other. Visitors arriving at the mall by car will find two levels of basement parking for over 200 cars with easy access.

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with space for conference/ board room. Present day corporate meeting will find the Board Room suitable for business affairs. The communication facility is made easy by the Wi-Fi Internet facility.

K P Muhammed Ashraf Managing Director The two-levels of basement parking with convenient driveway makes the visitors’ access to the mall very easy as the person at the wheel can avert much of the detour for parking his vehicle. The Integrated Building Monitoring System alerts the Security to be present to direct the visitors as and when needed. As the ground floor and two upper floors are sketched for Retail Space as the visitors’ first choice for retail outlets.

For top-up purchases Hyper Market is there. Kids can frolic in Kids Coner.

As also the 4th and 5th floors are provided with Game zone and branded health club respectively. Apart from the health club, 5 th floor is also provided

March 31 - April 30, 2014

Not-carrying-enoughmoney does not perturb you as the mall is facilitated with ATM. No hassles of a power cut as the Backup Generator lightens up the mall. The movement to any floor is made easy by the Elevator, Escalator or warm up through the Stair Case.

Away from the hectic schedules of the young generation; for some time the old may retreat in the Prayer Hall and the youths may flex the muscles in the Health Club or fresh up in the Swimming Pool and dine at the Party Area beside the pool.

P M Muhammed Shareef

K Muhammed

E K Muhammed Asharaf

A Hyder Ali

P P Musthafa Najeeb Kadiri The third floor of the mall is particularly designed ey, Indian Terrain, Royal Gold & Diafor Food Court and restaumonds etc. Emad Builders, pioneering rant where the space is occupied by promoters of commercial building in major brands like “Chicking”, Noodle Kannur is treading towards the growth King, Marhaba, DosaTawa, of its city. Established in Spoon and many 2007, the Builders other variants. has extended It is also segThe sanity their endeavof the wamented, for example, ours harmoter is no those shopping for women’s niously in concern or men’s fashions will find all the precedas there the relevant stores are locat- ing years. is SewerCreative in age Treated conveniently close to thinking and ment Plant. each other. judicious in Whether it’s planning, the combusiness, fun or pany has a bench of eight game it’s all in an Air-ConDirectors—E K Mohd Ashraf, P M ditioned ambience toned up with CenMuhammed Shareef, K Muhammed, tralized Music. Visitors can enjoy the international ambiance and presence A Hyder Ali, P P Musthafa, Najeeb of leading brands in garments, foot- Kadiri, late P Moideen, with K P Muwear, lifestyle, Jewellery & Watches, hammed Ashraf as the Managing DiMobiles & Accessories, Toys & Games rector leading its members to the full score. Decades-long experience make and many more. the Directors triumphantly effective in Ensuring branded outputs, finest their effort towards its core. Including products and refined services, it has its completed project ‘Emad Tower’Fort at its disposal leading brands like Max, road, Kannur and forthcoming project Greens Hyper Market, Foodies, Wood- ‘Kannur Central’, M G Road Thavakaland, Louis Philip, US Polo, People, ra, the company has wide ranging Planet Fashion Gold, Peter England, plans including micro-mall concept in Scullers, Indigo Nation, Basics Life, the suburbs Lee, Naturals Spa, Archies, Bata, JockMarch 31 - April 30, 2014

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Five things to know while buying a car A

uto manufacturers are promising fabulous discounts for those planning to make a purchase.

Go through these pointers before you avail of sops.

New year, old model Car companies usually offer big discounts in December to clear their inventories before they hike prices and launch new models in January. If you buy now, your vehicle will bear the registration date of December 2013, and in a few days, it will be last year’s model. This should not matter if you are planning to use the car for at least 7-8 years. However, if you plan to change the car in 3-4 years, the registration date will matter. A 2013 model will fetch a lower resale price four years down the line. Hence, it will be prudent to wait till January to buy it. Remember that a new car should be used for at least 8 years to get a full return on investment. Sell it earlier and you could lose out on its value.

Buy within your means The bigger the car, the fatter the discounts being offered. However, don’t let the freebies entice you into what you can’t afford. The golden rule is that the price of a car should not be more than 60% of your annual take home income. If your take home salary is Rs 60,000 a month, don’t think of buying a car priced at more than Rs 4.32 lakh (60% of Rs 7.2 lakh annual

income). Another time- tested principle is that the car loan EMI should not be more than 15% of your post-tax monthly income, or 40% of your investible surplus after all expenses and mortage payments. Follow these rules diligently when you choose the car model and you won’t regret the decision.

Consider the offers closely While you should not look a gift horse in the mouth, when it comes to freebies from car dealers, a closer look is necessary . They tend to inflame the value of free accessories to make the deal seem more attractive. This is why

it’s better to go for cash discounts rather than free accessories. Don’t fall for the exchange offers as well. Most car dealers offer to buy your old car, but the price they quote is usually much lower than the one you would get elsewhere.

A bit of market research will tell you can expect for your car, and you won’t

have to run around to find buyers. Avail of portals like Olx. In which they have made it easier to self used stuff.

Transfer the no-claim bonus All car owners know that if you don’t make a claim in a year, the next

year’s premium fetchers a discount.

However, few know that a no-claim bonus can be transferred to another vehicles, bringing down the insurance cost of a new car. You will have to submit the photocopies of the sale agreement, transfer documents, insurance note and the car’s registration certificate, along with a letter requesting the policy’s termination, to the insurer.

They later issues a no-claim certificate, which will get you the discount on the new car’s insurance. If the insurance of the new car works out to Rs 15,000, a 50% no-claim bonus will reduce it to Rs 7,500. This certificate is valid for three years from the date of issuance, but you will have to make things clear to the buyer since it is assumed that the old car comes with insurance.

Petrol, Diesel, or CNGT Petrol is the costliest car fuel, but petrol cars are cheapest. Diesel is in expensive, but the diesel variants of cars are costlier by Rs 75,000-1 lakh.

They also require higher maintenance.

Your choice should depend on how much you travel in a day. If you drive more than 80 km a day, go for a diesel car. You will be able to recover the extra cost within two years. This assumes that the gap between petrol and diesel prices will not narrow down further. CNG is a clean and cheaper fuel, but its availability can be an issue.

Morever, the CHG cylinder takes up a lot of boot space

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RN 65561/94 Reg. No. KL/EKM/116/2009-2011

Nettikadan Corporation Nettikadan Building, Karakkat Road, Cochin - 682 016

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