Passline magazine

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Events Infopark-II: Chief Minister Oommen Chandy dedicating the Rs 2,500- crore Infopark Phase-II project to the State at Brahmapuram. IT and Industries Minister P K Kunhalikutty, Minister for Fisheries, Ports and Excise K Babu, PWD Minister V K Ebrahim Kunju, Benny Behanan MLA and Infopark CEO Hrishikesh Nair are also seen.

Federal Bank signs MoU with LIC for implementing Pradan Manthri Jeevan Jyothi Bima Yojana. Seen in the picture is Antu Joseph, General Manager (Products), Federal Bank and Meenakshinathan, Divisional Manager, LIC of India exchanging the MOU in the presence of Minimole Liz Thomas, AGM, Chitrabhanu K G, AGM, Federal Bank and S Sreenivasa Rao, Marketing Manager, LIC among others.

During the official award distribution ceremony held at Rashtrapati Bhavan in New Delhi, President Pranab Mukherjee conferring the Padma Shri on Dr K P Haridas, Chairman and Managing Director, Lords Hospital, Trivandrum; for his four-decade plus service and contributions to the field of surgery and medicine. Dr Haridas is among the two Padma award recipients from Kerala this year.

Dr R N Patra, CMD, IREL and S Suryakumar, Head, IREL Udyogamandal Unit jointly receiving the award from S S Bajaj, Chairman, AERB in Mumbai.

3 From the Editor

Another `shock’ for people of Kerala!

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he people in Kerala and Tamil Nadu will get `electrocuted’ when the new electricity amendment bill becomes law after getting the nod by the parliament. Thereto , the distribution and the sale will be the right of corporate monopolies. The companies which earn the license to sell electricity they buy or generate will use the existing dedicated lines for distribution and they will pay a fee as rental to the government for using the same. The proposed bill entrusts the new licensed companies to sell electricity to high end users who are paying the charges at a premium rates. The companies will compete each other to bag their business . In each states, 30 to 50 % subscribers fall under this category and getting this business will be a gold mine for the new companies indulging in this venture.

Editor & Publisher

Varghese Paul Kozhikode Vineeth Mukundan 8714986177 Chennai Augustine Joseph Ph: 09381000534 Bangalore Gireesh Gopal +91 7204560000 Adithya +91 9538060591 54, 2nd Main, Vyalikaval Bangalore - 560003 Manager-Marketing Sajan K 09895344485 Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. www.passlinebusinessmagazine.com

The issue is that the new bill envisages the distribution companies to supply electricity to subscribers of minimum 500 mega watt of power. Most of the State Electricity Boards in the country are surviving by providing the power to this class of subscribers and the excess amount collecting from this users are being utilized to provide subsidies to agricultural and home sectors . The onus of giving subsidy is not with the new distribution companies as per new bill. Naturally electricity boards have to find some alternative to safe guard the interests of the weaker section of society. Most of the boards are financially in precarious situation and it is not possible for them to find an alternative for this.

As regards Kerala, the majority of the high end users are remitting the electricity charges regularly compared to any other state . When this class was separated from the state electricity board the board will only have the onus of providing subsidy to agricultural and residential sectors. The way for the board to come out of the dilemma is either get huge subsidy amount from the government exchequer or hike the tariff four or five times higher to provide subsidy. Presently the agriculture sector is getting electricity at the rate of Rs 1.50 per unit, for residential sector after subsidy it is Rs 2.5 and the small traders for Rs 4.5. But the tariff for the industrial sector is Rs 9 and the 30% of subscribers are from this category. Approximately, there are 4150 subscribers in this category and 43% of the income of the board is from this category.

There are total 1.10 crore subscribers in the State and we are providing subsidy for our primary subscribers from the excess income of this 30%.

The ‘shock’ arises from this additional burden for the people of Kerala, including farmers, who have already reeling under many issues like dwindling agricultural commodity prices , slow down in NRI income flow, crisis in respective business fields and with a lot more of social and political problems, will find it as the last nail driven into their coffins.

Varghese Paul

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Kerala turns a death knell for business community Passline News Service

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May 31 - June 30, 2015

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usiness community in the State is living in utter fear and depression. The dip in business volumes and spurt in expenses on one side and financial commitments to banks and other financial institutions on the other strangle the entrepreneur. The business community as a whole complain that there is no administration in the State. The prices of the agricultural commodities have nosedived into pathetically low level pushing the farmers into hunger and distress. Many of them opt for suicide as the last resort to get rid of the debt trap and dishonour they face. The Government is in neck- deep debt and its fiscal deficit is ballooning day by day due to the unproductive and indiscriminate spending. Now the things are out of their hands.

Instead of finding the solutions for the imbroglio, the rulers are sitting idle. The ministers and the bureaucrats are trying their best to push their booty of graft under the carpet. This government, from top to the bottom, has been in tainted by graft and nepotism they alleged . Apart from increasing levies and taxes in the budget, the Government is imposing anti-business measurers like changes in rent control act , hiking the fee for the business licences etc to tighten the noose around the neck of business community. Below are the excerpts of some comments by the officebearers of leading business chambers and industrial associations.

good governance in the State. The UDF ministry headed by Oommen Chandy does not have time to rule instead he is trying hard to hush up the scandals and corruption charges against him and his accomplices in the ministry . And also wasting his valuable time to settle the scores among the constituents’ in his coalition. He has to show the power of the chair. The closure of 750 bar hotels has made a dent in the tourism industry which is considered as the prime source of revenue for the exchequer.

Other few reasons that hamper the business growth are the dip in rubber price; the uncertainties in West Asia particularly in the Gulf countries. NRIs are hesitant to spend due to the uncertainties in their respective land of employment. This coupled with downfall of real estate boom drove the last nail into the coffin of Kerala business community. People do not have the purchasing power; or they are simply postponing their purchase indefinitely. That is the scenario now and the government is imposing more taxes and levies time to time to make the life more miserable. In my personal experience I have a total slump in business volume 38 to 40% during the recent one or two years but expenses and other overheads are skyrocketing.

Ramachandran President, Kerala State Small Industrial Association (KSSIA)

Mathew Kuruvithadam Chairman, Kerala Chamber of Commerce and Industry(KCCI)

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usinessmen in Kerala are finding it difficult to survive as business volume is depleting day by day and this is tough time for them to make both ends meet.

Generally in India, there is a lull in every aspect of the economy.

The initial slow pace when the NDA Government came in power is not being witnessed nowadays.

But the worst scenario is seen in Kerala due to certain reasons pertaining to the State only. The reasons can be numbered at finger tips and the prime one is lack of

rankly speaking, there are no activities going on either in trading sector or in manufacturing sector of Kerala now. During the appalling global economic meltdown in 2008, I think Kerala withstood the economic famine and we did not notice at all the signs of the slowdown. The volume of the economic activities, both in trading and manufacturing, steadily comes down today. Since I represent the small manufacturers in Kerala I can feel the pulse very well. The demand has come down for the goods and even if we procure some orders we are not getting the proper pricing for it due to high competition. Because every

manufacturers are having huge inventories and all of them are trying to push it in the market and the net result will be slow realisations of our bills from the customers. But in contrary, the cost of the raw materials are sky rocketing due to bevy of taxes and levies imposed by the government time and again.

There are many reasons for this peculiar situation. The fall of rubber price will be the one because in Central Travancore and some other areas where the rubber cultivation is rampant may have jeopardised the economic system. Another reason like hiving of NRI salaries and frequent price fluctuation in oil happening in the Middle East forced our NRIs to follow austerity measures and it will also make some impact on the buying capacity of the people . But the root cause for this alarming situation is the stagnant governance of the State.

Officials and bureaucrats are acting according to their own whims and fancies. Allegations and counter allegations have been polluting the air of the State for the last couple of months . The hooliganism perpetrated by both the ruling and opposition fronts in the secretariat during the budget presentation will not fade away soon from the memory of our people residing all over the world. The Chief Minister was the mute spectator for the entire mayhem and his selected agenda is somehow to complete the term haphazardly instead of taking action against the perpetrators of the unfortunate happenings. And he is willy-nilly trying to protect corrupt elements in his cabinet to achieve his goal. He is yet another victim of the coalition `politrics’ and the ruling front with wafer thin margin. I do not think that Kerala can cope up with our neighbouring states’ economic status, in near future. They are marching ahead with the industrialization with giant pace and we are not all giving ample attention to MSME sector which is the only stepping stone of the State after IT and Tourism.

Deepak Aswani Former Chairman, Kerala Chamber of Commerce

May 31 - June 30, 2015

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low down is now prevailing more or less all over India, especially among the trading community . There are some genuine reasons for it. The pattern of doing business nowadays has been drastically overhauled compared to olden days. Thanks to the technological development achieved by the human kind to ease the efforts by doing business in brick and mortar way. As per data India has a GDP

People are always saying about the more efficient ways of collecting tax from the traders and industrialists as a remedy for the government to get over the financial crisis.

But compared to any other state, Kerala has the less tax evasion and, in contrast, rates of taxes are very high here for most the commodities. The bank finances or the financial assistance from any government agencies are prevailing at high rate. We won’t get a loan at a rate less than 17% from the bank; and in the case of government agencies it will be minimum of 15% which is also not feasible in the changed scenario growth of 8% comprising all the spheres of the economy including retail trade and merchandise. Out of that total 8%, 40 % is constituted by the e-commerce. That means the traditional style of running business is slowly but steadily losing ground weakening the economy.

There are 200 malls in India, out of that hardly 8 or ten are running in profit and this information will substantiate the graveness of the situation. The NDA government’s prime focus is with manufacturing PASSLINE

sector. This gave a double whammy effect to already beleaguered trading community.

But the atmosphere is more worse in Kerala due to the policy paralysis and lethargy of the government.

Amazing factor is that the people are taking it lightly. Every day one or two scams and scandals are doing the rounds incriminating ministers or the government employees.

Media will celebrate it with much fanfare with front page news and channel discussions in the televisions tiill a fresh scam broke out.

I believe, the newly carved State, Telangana, with all its teething troubles are doing economically better than our State. Business turnovers are nose diving day by day and it seems to be difficult to make both e ends meet. Last year the fall was around 10 to 15 %.

But this year it has doubled. Over and above, a lot of new taxes and levies are slapped on the business community every year to make their life a hell. People and merchandise associations are attributing the scenario to rubber price crash, slow flow of gulf money to the market and real estate sluggishness.

The government is doing nothing literately and practically to overcome this stalemate, instead making statements and other sorts of lip services . If things proceed like this for some more time, the business community in the State will drown in the debt trap.

Binny Immatty President, Kerala Vypari Vyvasayi Samiti

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n Kerala, business and trade are lingering and there is no commercial activities taking place in the State except the scams of bribes to the tune of crores of rupees involving the ministers handling almost all the portfolios. The UDF Government in the State is gagging the traders by adopting unruly measures and policies . The recent changes in the rent control act, hiking of license fees enormously in trading sectors are few examples.

The policies of Modi Government inviting foreign investment in retail business and opening business cor-

May 31 - June 30, 2015

ridor for the mighty online trading companies have already ruined the small and medium traders. Above that the State Government is also trying their level best to destroy the trading community by hiking the tax rates indiscriminately. For most of the products in Kerala are having a higher rates of tax compared to our neighbouring states.

Ours is a money order economy.

The people depend totally on their kith and kin working abroad for their livelihood. The eerie conditions in the war- torn Middle East and other foreign countries bombarded the aspirations of the people who wait for the money from abroad. This has doomed the market sentiment. The purchasing power of the people has horribly dwindled. The data reveal that the flow of money has slumped to one fourth of the amount collected two three years ago.

Along with the industrial and trading sector, the agricultural sector was the first victim of this government policies. The only hope is the fishing sector. That one also will fall on bad days with the implementation of the Meenakumari Commission report by the Central Government and the State Government is not doing anything to protect the interests of the fishermen by way of conniving with the Centre to make the scenario more murkier. The flourishing areas of Kerala was agriculture and real estate. The glory of the real estate has become past history now and the sector will not regain its lost glory in the near future, according to the experts.

To save the traders and trading sector in the State , our organisation is demanding certain vital changes in the policies of the Government under compassionate ground from the ministers. Do not give permission to operate foreign retail chains in the State; regulate the online trading in the State; withdraw the newly imposed rent control act which is harmful to business community ; create an atmosphere to get financial assistance from financial institutions at lower interest rates to stop exploitations by the banks within the trade and industrial sector; evacuated traders for the purpose of developmental activities should be given proper rehabilitation and right compensations; save them from harassment of the tax department; roll back the licence fee hike; stop the exploitation of officials in the check- posts; make its operations transparent and improve the working of the welfare board etc are the main demands.

We are organising mass agitation

and rally throughout the State to make the general public aware the plight of the merchants in the State.

Amarnath Head, Aswathi Group of Companies

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0% of the industries and business are survived at the behest of the government departmental businesses. The financial crisis of the government made a havoc in the economy. The Government is not passing the bills of payments due to the vendors and the contractors in time. Bills amounting to hundreds of crores of rupees payable to government contractors are pending and the contractors are not entertaining the new works .

An industrialist like me has a lot of supplies to various government projects and since contractors are not being paid, our money with the contractors is also blocked. The government is in huge debt trap and also it does not have financial stability or professional finance management. I do not foresee a solution even in spite of a change in the guard.

People are always saying about the more efficient ways of collecting tax from the traders and industrialists as a remedy for the government to get over the financial crisis.

But compared to any other state, Kerala has the less tax evasion and, in contrast, rates of taxes are very high here for most the commodities. The bank finances or the financial assistance from any government agencies are prevailing at high rate. We won’t get a loan at a rate less than 17% from the bank; and in the case of government agencies it will be minimum of 15% which is also not feasible in the changed scenario. The business and industrial sectors must get loans below 10% nowadays, to get along with the competitions from the multinationals with thick pockets. The bureaucrats and the government are looking at the traders and industrialist as criminals or antisocial and we are in a state of fear. This should be changed and a cordial and warm relationship between the officials and the trading community must persist.

7 IN PERSPECTIVE

Modi Govt’s economic report card

Dr V K Vijayakumar

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ne year may be too short a time to judge the economic performance of a government; but it is adequate to judge the direction of economic policy.

From this perspective, how has the Modi government performed in its first year? More importantly, where does it go from here?

The government certainly has many achievements to its credit. The first and foremost is the macro economic stabilization that it achieved.

There is a consensus today that from the macro economic perspective, India is in a sweet spot. The government succeeded in achieving the fiscal deficit target of 4.1 %.

The current account deficit around 1% is very safe. This macro stability will stand India in good stead when the US Fed starts raising interest rates towards the end of this year.

Macro economic stability may not mean much to the lay man but it is hugely important in determining the important economic outcomes that impact the ordinary people like

the GDP growth rate, job creation, inflation rate etc.

Perhaps the single most important economic achievement of this government is its success in reining in inflation. The CPI inflation is down to 4.87 in April 2015 from 8.48 a year ago. The WPI inflation is down to - 2.85. It is a fact that the single most important factor that brought inflation down was the crash in global crude prices. But the government also contributed.

It made only a small increase of 2 % in MSP for agricultural products.

During the UPA 2 regime MSP was raised in double digits for 5 years.

This, along with programs like the MGNREGA, led to high food inflation. Also, this government, unlike the previous one, released large quantities of food grains in the open market to arrest price rise in cereals. The contribution of the RBI’s conservative monetary policy in bringing inflation down is also substantial.

There is revival of economic growth. According to early estimates the economy grew by 7.9 % in 2014-15. But this growth rate based on the new methodology of national income calculation is not comparable to previous years.

As per the old methodology, the growth rate would be around 6.5 %. There is certainly a turnaround in growth but it is a fact that the growth rate is far from robust and the trends are below expectations.

The Modi Government cannot be accused of ‘policy paralysis’ which was the bane of UPA 2. The government’s initiatives in policy are laudable. The auctioning of spectrum and coal mines were very transparent processes with huge

revenue gains. This is a welcome contrast to the spectrum and coal allocations of the UPA which resulted in huge revenue loss besides causing the worst corruption in Indian history. The new coal mining act is capable of ending the monopoly of the inefficient Coal India and in the long run this will have huge benefits for the economy.

The passing of the GST Bill in the Lok Sabha is certainly an achievement. This landmark reform will be a game changer for the economy if it is implemented. But the government can claim victory only if it manages to get it passed in the Rajya Sabha too. Whether GST will come into existence by April 2016 remains to be seen. If it does not happen the BJP should take the blame since it played politics when the GST Bill was introduced by the UPA and single-handedly sabotaged it. Credit has to be given to the Congress party for supporting the higher FDI in insurance. The BJP, while it was in the opposition, had opposed the insurance bill.

Going forward, a crucial test of the government will be its success in passing the land acquisition bill.

Passing of this bill will be crucial in accelerating economic growth in India. If Indian economy is to accelerate to 8 % growth rate and sustain it for a considerable period of time, passing the new land acquisition bill will be crucial. But, unfortunately, this has become a hugely controversial issue with great scope for politicking.

The government’s initiative in accelerating capital spending through the National Infrastructure Investment Fund announced in the last budget has the potential to kick

start the capex cycle and facilitate growth revival in the economy. But it has not yet taken off in a big way.

The focus on social security introduced last year is laudable. The Rs 2 lakh accident insurance at a premium of Rs 12 a year, life insurance at a premium of Rs 333 a year and the Atal Pension Scheme in which half the premium (maximum Rs 1000) will be paid by the government are comprehensive social security measures for the ‘aam aadmi ’. The greatest merit of this social security initiative is that it is not based on ‘freebies’ but on insurance and pension. This mix of ‘good politics and good economics’ is a step in the right direction.

On the flip side, the state of the PSU banks is alarming. The high NPLs of the PSU banks have pushed the gross non- performing loans of the banking system to above 5 percent. There were no serious initiatives from the government to recapitalize the PSU banks.

Similarly, the ‘stuck’ infrastructure projects like the power projects still await resolution.

The litmus test of this government would be its ability to get the GST and the land acquisition bills passed in Parliament. If it succeeds, the prospects for the Indian economy would improve dramatically. The government deserves appreciation on its accomplishments on the legislation front so far, particularly the transparent auctioning of spectrum and coal mines. Its intentions are ambitious and in the right direction.

Therefore, while I would give 7 out of 10 for the Modi government’s first year’s economic performance, I would give them 8 out of 10 for their intentions and plans.

May 31 - June 30, 2015

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Infosys backout may become a damper to Kerala’s Passline News Service

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ill the backout of the IT bellwether Infosys from the Technocity doom the prospects of State’s IT sector? The allegation from the side of Infosys is the non cooperation of Technopark in building up of infrastructure required by the company in the phase 1V expansion of Technopark, Technocity. Infosys PASSLINE

is country’s second largest IT company after Tata Consultancy Services (TCS) and one of the biggest employment provider in the country. Naturally, the backout of Infosys may end up in exodus of other companies also.

It will affect foreign earnings of the State as well as aspirations of unemployed youth.

Though Technopark is refuting the allegation of non – cooperation by saying that the IT park had provided all facilities to Infosys required to start the construction but something is missing between the lines. Having

May 31 - June 30, 2015

spent Rs 47.54 crore for the land, no corporate will back out from a project unless some grave reasons

P H Kurian arise. On the request of Infosys, Technopark had handed over the

49.84 acres of land, notified as Special Economic Zone (SEZ), on March 27, 2013 for its new campus in Technocity, said P H Kurian, Principal Secretary – IT, Government of Kerala. Does anybody think Infosys would have kept quite if lack of infrastructure was holding their construction plan after spending nearly Rs 50 crore ? ” asked Kurian. Quoting the Memorandum of Understanding (MoU) signed between Technopark and Infosys in April 2012, he said Infosys should have started the construction within a year from the date of lease deed (in this case at least from the date

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but was only keen on expanding its Phase-2 campus, which is under construction near Technopark.

“They promised to create as much employment opportunities in Phase-2 expansion as offered in the proposed Technocity campus, but never mentioned any dissatisfaction about the infrastructure provided by us”, he added.

K G Girish Babu Infosys main contention is that the allotted land comprises a temple that would hinder its construction. Dismissing Infosys’s allegations, Girish Babu made it clear that the temple was never under

the possession of Technopark and was not included in the tract given to the software company . “With the excellent relationship running between the top managements of Infosys and Technopark, we do not believe that the corporate would blame us for lack of support. The allegations mentioned in the letter are bereft of facts and sound like individual perceptions of the person who wrote the letter, but these need not be a considered corporate view.” optimises Girish Babu.

Technopark has so far invested Rs 5.96 crore for the construction of roads within the proposed Technocity campus, which includes the four-lane road stretching throughout the frontage of the plot given to Infosys. As much as Rs 2.73 crore for power infrastructure and Rs 17.87 crore for water supply have also been invested to support construction activities within the Technocity. Further an amount of Rs 41 crore will be invested for the 11 kv 25 MVA sub-station

to meet the power requirements of buildings once they become fully functional. The CEO reiterates, “There is nothing to prevent Infosys from starting the construction work as 11 kv power supply required for the project office is already available at the site.” .

Infosys is yet to initiate a series of activities of campus construction, including the signing of co-developer agreement (draft of which was provided by Technopark), submission of application for Co-developer approval, execution of bond-cum-legal undertaking, execution of the lease agreement and submission of drawings to Technopark for approval. According to Technopark management, they have managed to meet all the requirements of Infosys without any major glitch. Plans are also in place to support the future expansion of both Infosys and UST Global. But what made Infosys to take such a drastic step is still elusive.

IT prospects of handing over the possession along with notified SEZ status).

“Even when Technopark has provided all basic infrastructure facilities required for construction, we haven’t received from Infosys the building plans or any explanation on this delay so far. This is a clear violation of the terms and conditions mentioned in the MoU,” said K G Girish Babu, Chief Executive Officer, Technopark. The CEO also mentioned that Infosys had not replied to a reminder letter sent six months ago by Technopark. Infosys had informally indicated its reluctance to set up a new campus within Technocity, May 31 - June 30, 2015

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Legend Group Arabian success in Kochi realty Passline News Service

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his very success story may sound a similar one which you have been hearing, reading or watching on Malayalam celluloid right from the landing of the first man from Kerala in the Persian Gulf-the promising land of an average Malayalee youth to flourish. The fascination of Arabian wealth has always been the dream of each and every Malayalee in the State even today.

In northern part of Kerala, at least one member from each household will be

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May 31 - June 30, 2015

working in this desert laden land.

The protagonist of this success story is none other than Joji Mathew Chakkupurakkal, who hails from a modest Christian family from Malappuram and who has also heard and dreamed like any other youth of his age in his neighbourhood about the great possibilities and opportunities in the oil rich country. Joji’s agricultural family – Chakkupurakkal -- is originally from Kottayam as his ancestors had migrated to Malappuram in search of greener pastures suitable for farming. Born to Chakkupurakkal Mathew and Mariayamma in 1974 in Nenmani Village, Malappuram district Joji is Karate enthusiast and has secured Black Belt at the age of 17.

After completing his degree in his native place, Joji’s aspiration was to bag a MBA and get posted with a good company. But his father was reluctant to send him for MBA and he persuaded Joji to join the family business. But Joji had his own vision and ambition. So an adamant Joji went to Mumbai in search of a job and got a posting in Indian Market Research Bureau (IMRB). But his dream of a lustrous Arabian gulf was live in his mind and it was not fulfilled even after landing in

a good job with IMRB. Within a short period of time he got employed in Saudi Arabia with Saudi Oberoi Group. But to become a business man was his ultimate goal and he returned to Mumbai and started a Kerala restaurant. The success of the maiden venture boosted his confidence to achieve newer vistas and continued with his effort for it. He flew down to Dubai on a visiting visa. Unlike others he was so determined and passionate to achieve his ambitions and he sat down in the airport lounge watching people coming to airport and picking up their guests and friends. No one came to him because no one is there in Dubai to receive him. Later, a person from Nilambur came there in search of someone else and his search ended in Joji. He took Joji to his hotel.

Thereto, Joji started the Dubai life..

After exploring possibilities in Dubai thoroughly, Joji had started a small service business set up with local Emirati and he learned Arabic language by the time. It was the harbinger of a successful venture Legend which was tremendously unbelievable standing apart from the hackneyed situations narrated in a film script. Now the Legend Group of Companies started with four employees has grown into a $ 500 million conglomerate with 1600 employees spreading into 27 countries all over the world including US and Europe with diversified business interests. Out of 27

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Joji Mathew companies, 17 companies are in UAE. Joji at the age of 41 now is sitting at the helm of the affairs as CEO and Managing Director of the Group and His Excellency Salem Saif Bin Saeed Al Jari is the Chairman of the Group. We listened to the super natural success story -- synonymous to the Arabian tales-- from Joji and put his words in the format of edited excerpts: “I accomplished my dream in just 17 years. It was made possible only because of the unstinted support and cooperation extended by business partners, stake holders, employees and my family. The company which I floated initially was used to undertake electrical, plumbing, cleaning and also electromechanical work. It was a humble beginning that paved the way for the launching of our construction company and the situation in UAE 17 years ago was receptive and encouraging. There were a lot of civil works taking place at that time. That too propelled the pace of our success. Meanwhile I started HR recruitment moderately which was having very good scope at that time. But, for us it was initially difficult. Of late, the business was flourished and we expanded it to other GCC countries.

Now Legend Group is fully diversified into areas like Infrastructural Development, General Trading, Electronic Division, Hospitality Management, Electromechanical Services, HR

Consultancy, Marine Engineering and also Health Care apart from the Real Estate division. In addition to our own real estate department constructing Villas, Hospitals, Schools, Malls, Water Theme Parks we also act as Channel Partners for big construction houses like Mahindra, Tata, and Godrej etc to sell their villas and apartments in Gulf region. Legend International Real Estate Co, one of the concerns, is indulging in it.

Our Hospitality Management Division is very popular in Gulf region now. This division will place employees according to the requirements in Hotels , Schools, Hospitals , Villas and Residential apartments .The employees are trained by hardcore professionals for cleaning, janitorial services and other related services with most convenient and flexible work time that suits the clients. Handling and cleaning of delicate objects, furniture, carpets will be done by these trained employees with optimum care. We used to send people for handling parties and get-togethers with guarantee for smooth and perfect proceeding of the

party. Besides realestate and allied service, we have unique and novel businesses like hiring of baby sitter, round the clock ironing service, the pet care department and entire array of janitorial services.

We have completed 393 projects having 70 million sq ft so far. The Legend Jo-

Jessy Jai Sales Manager

May 31 - June 30, 2015

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12 swana will be the 394th one. We, with the international experience, are at par or above of any other reputed realtors of Kerala . Actually we planned our Kochi project five to six years ago. But our Indian operation was delayed; because I was not at all sure of accomplishing the project by devoting my time and sincerity to it fully. When we decided to launch our maiden project Legend Joswana our well wishers are asking us why do you choose this time to launch Joswana in Thripunithura since the industry is going through a rough patch due to the slow down. I strongly believe that their perception is wrong about it. Slow down is the apt time for buying land and it also favours many other consequent needs.

If we get the land comparatively at a lower price, we will pass the benefit to our customers. Our price for Joswana – a complete luxury apartment-- is very low compared with any other project of that kind”. Joji attributes his success to his wife Sisy Joji and the couple is blessed with two children Josna Joji , daughter and Jeswin Joji, son. An Vision To consistently and continuously expand the group by providing specialized services in diverse industries while actively seeking growth opportunities. adamant yoga practitioner Joji has done Yoga Siromani from Sivananda Yoga Vedanta Dhanwanthari

Ashram and currently is pursuing PhD in International business management from a Canadian University.

Mitzuki Corporation Limited “ In 2010, the acquisition of Mitzuki Corporation, Japan, (one of the pioneers in designing, research, development and manufacturing

group with assembling units in China, Malaysia, Taiwan and Korea in Mitzuki brand for solar water heater, CCTV camera, DVR system etc and started export to the world market. The acquisition enabled us to use high quality of solar and other electronic equipments in all our projects which will give

Mission To adhere to commitments and deliver on promises in an efficient and professional manner first time, and every time. of full range of solar, security and other electronic products) made a lot of value addition to our entire Nishanth Mandody Head Marketing Legend International Real Estate

Joji Mathew with wife Sisy Joji, daughter Josna Joji & son Jeswin Joji PASSLINE

May 31 - June 30, 2015

our customers full value for their money they invest. Our upcoming project in Kochi – Thripunithura -- Legend Joswana-- is a Hybrid building by using wind energy and solar energy in the common area for its power requirements.

Pursuing quality, performance and innovative approaches by maintaining a clear focus on the future are paramount factors to consistently meeting and executing our clients’ expectations time and again, thereby achieving smarter, sustainable outcomes”.

Regulation in real estate sector “We welcome the decision of Kerala government to constitute a regulatory body. That is the only way to detect the fake players and clean up the mess prevailing in the industry. There are a lot of news coming up in the media about the fraudulent practices followed by certain promoters who have no track record in the industry. Umpteen number of hapless buyers, majority of NRIs, are duped by them. Their hard earned income, by working day and night in adverse climatic condition, becomes just like bubbles on the water after investing with such bogus projects which will exist only in brochures.

There should be an end for this malpractices. We are coming from an environment of strict regulations. We know the pros and cons of the regulations and we are very much adjusted to it. Real Estate Regulatory Authority (RERA) in Dubai is one of the stringent regulating bodies in the sector. Ever since we announce a project the money accrued from the buyers of particular project will be credited

13

Joji Mathew with Chairman His Excellency Salem Saif Bin Saeed Al Jari

in an Escrow account for which the promoter has no direct access.

If we want to publicise the project we must procure sanction from the agency and it is possible only by scrutinizing our work’s progress by

the authority. There is no hassles for us in any of the GCC countries, not only us, but for others those who do the legitimate business. So, in Kerala as far as I am concerned, regulation is the need of the hour”.

Legend Joswana

“ Joswana is our first apartment project in Kerala with 75 apartments in one acre plot. Both 2BHK and 3BHK apartments with 1295 and 1864 sq ft area are available in the project with the maximum available luxury at a reasonable pricing. The most important aspect of this project is that we have given utmost importance for the green living that is why we choose Thripunithura for our foray into Kerala.

The temple town – cultural and heritage hub of Kochi-- is a small town, a few kilometres away from the nerve centre of Kochi with all advantages of environmental purity. Our project – Joswana-- itself is nature friendly one with Hybrid Natural Power back-up. Before zeroing in on Thripunithura we have examined 40 plots for Joswana but we could not find a viable place like Thripunithura with fresh air and clean water and with a lot of other favourable factors coupled with the proximity to Kochi City.

We ensure that Joswana has a touch of Arabian style and the design is novel for Kerala and the apartment has three high speed lift, roof top swimming pool, health club, children’s play area, facility for car wash with sprinkler, club house with indoor games, 24-hour generator back- up, party area , yoga / meditation area on roof top, 24-hour Hybrid natural back-up, CCTV surveillance in main lobby and common area and jogging track will certainly give a feel of high class living in the land of Sree Poornathrayeesa for the privileged owners of the Legend Joswana.

The Joswana, the first project of the company’s Indian arm-- the Arabian Legend Realtors Pvt Ltd-- is aiming for a total build up area of 1 crore sq feet by 2017. The company is planning Rs 500 crore investment in the real estate sector of South India in the near future. We have already invested a large sum of money in land holdings in South Indian states including Kerala according to our plan. We expect to complete Joswana in a span of 18 months and next immediate project also will be in Kochi which will be a villa project”. (Response feature)

Elevation of Legend Joswana

May 31 - June 30, 2015

PASSLINE

14 ISSUES

Check-posts of Kerala Should we not reform?

F

requent disruption of truck movement is a unique feature in the Walayar check-post of Kerala. Towards the end of fiscal year 2014-15, AIMTC (All India Motor Transport Congress) had stopped truck movement at Walayar on the Tamilnadu-Kerala border for several days. TV channels were showing the kilometerslong queues of trucks loaded with commodities, waiting for clearance.

Regional and national newspapers were flooded with statements and counter statements by AIMTC and Kerala Government.

The Hindu of 1st April had articulated the truckers’ views as below: “Out of 1663 check- posts across the country, delay from 10 to 12 hours was experienced only at Walayar check- post, and despite repeated requisitions and agitation for the last few years, Kerala government failed to address the problem… ….Nearly 3,000 lorries cross to Kerala from this check- post carrying perishables, vegetables, eggs, chicken and electronic and electric goods valued over Rs 500 crore and lorries have to wait nearly 12 hours to get clearance, which has seriously affected the delivery schedule, due to which the vegetables and other perishables get spoiled,” AIMTC source said.

Given below are excerpts from another newspaper report: “Increasing counters at the Walayar check -post at Kerala to ten from three, installing scanning machines, PASSLINE

a green channel for goods like steel and cement, parking lot, basic amenities like drinking water and toilets are the major demands. …Presently, sales tax authorities of Kerala take a minimum of ten hours to a maximum of fifteen hours to clear a single truck at Walayar, he said. It happens nowhere else. Across 1,268 border checkposts in the country, the average clearance time is about an hour,” he added. ….Stating that about 3,000 vehicles on an average “should cross Walayar point,” he however said this often “does not happen” as vehicles get delayed at check- posts.

Kerala authorities still use “ageold” system to check consignments by piercing the bags with needle, he said, adding “we demand installation of scanners which will ensure quick clearance of vehicles.” ….Kerala Finance Minister K M Mani had urged the striking truckers that steps had already been taken to improve facilities at the check-post. He said decision has been taken to open more counters and steps have been taken to acquire 30 acres of land for providing basic facilities.”

Such long dispatches by reporters from Walayar and assurances by ministers and bureaucrats are not new. Two years ago, the then Chief Secretary Bharat Bhushan had said that Kerala government will take up construction of an integrated check-post at Walayar to end traffic

May 31 - June 30, 2015

blocks and the alleged corruption in its functioning. Talking to media persons in Palakkad he had said, once the land acquisition is cleared by the court, construction of the integrated check-post will begin. He said for speedy clearance of goods vehicles, a scanning machine and weighing machine will be set up at the check-post. (Hindu 27-10-2013) Five years ago in 2010: According to a news report of April 22, president of the Federation of Kerala Goods Transporters N A Mohammed Kutty had alleged that the then Finance Minister T M Thomas Isaac’s efforts to make the Walayar check post corruption-free have failed for want of support from other departments. He had said that vehicles coming from other States to Kerala are held up at the check- post for 10 to 12 hours. He said the system of checking goods using sharp iron rods by the excise department officials had caused several problems to the transporters.

K Vijayachandran

and two each in Wayanad and Kasaragod districts and one each in districts other than Kochi and Kozhikode which have no borders with the neighboring states. Five of them border with Tamilnadu and seven with Karnataka. (see box-1) Among the twelve check-posts, only the Walayar post near Palghat City on the NH-47 hits the news headlines, and thanks to the economic geography of the region, this check-post is most popular and accounts for the lion’s share of inter-state traffic. The high volume of traffic is liked by most officers of motor vehicle and commercial taxes departments and disliked by some, depending on their attitude to corruption at the borders. These two departments are the most corrupt of every Indian state and Kerala is no exemption.

Six years ago in 2009: I have on record, my own email letter of June 15 addressed to Dr Thomas Isaac, warning him against the proposal to build five-star facilitation centers at the check-posts, starting with Walayar. The idea is being pursued even now by the UDF ministry, as evidenced by the former Chief Secretary Bharat Bhushan and the Finance Minister himself.

Motor vehicles departments are the custodians of border checkposts in all states, and the facility is shared by the commercial taxes departments: Even other departments like excise, environment, health, home etc also make use of this basic infrastructure owned and operated by the taxation departments that substantially support the finances of state governments.

Both these departments have been computerized to the teeth with all sorts of hardware and software in most of the states. Gujarat was a pioneer in computerization.

Kerala Government maintains a dozen border check-posts: Three of them are in Palakkad district

Karnataka with its SUVEGA packages, developed in cooperation with National Informatics Center

(NIC), appears to have far more advanced features than Gujarat: However, neither has achieved any breakthrough in cost reduction, customer satisfaction or efficiency improvements. There is no indication that computerization has helped in containing corruption either and because of the numerous loop-holes corrupt practices have survived the massive computerization programs.

One of the reasons for the delay is said to be the multiplicity of counters from where the truckers have to seek clearances. Some drivers were of the view that the main reason for the delays in Kerala checkposts was that many officials did not accept bribes and insisted on proper documents. A recent newspaper report had quoted one Raju, a driver from Punjab, saying: “It’s our companies that need to give us all documents. We suffer here for days in shine and rain because they do not give us proper documents.”

Money changes hand and issues get settled across the table amicably, in the next shift or the next day!

Kerala is far less corrupt or only half-corrupt, compared to most other Indian states as revealed by studies of Transparency International ( Ref. my article in the Passline of Sept 2011). In states like Karnataka, Gujarat or Maharashtra, where the culture of single point clearances by Government agencies has come to stay: bribes are paid up at a single point and then shared by corrupt officials. This sort of institutionalized corruption, possibly, do not exist in Kerala check-posts.

Computerization should have improved the productivity of staff and brought down the operating costs of taxation departments apart from improving the quality of service. Surprisingly these objectives of computerization have been hardly achieved in any state and Kerala is not an exemption. Users of Kerala check-posts feel harassed, operating cost per unit tax yield has not shown any tendency to come down and there is a demand for increasing the number of counters

Presently, more than three-fourth of the state revenue is from the 4 strong Sales Tax department and per employee contribution was R Crore, last fiscal. Better tax yield as well as improved quality and e 15 administration are assured if the above said crucial reform is imple as in the management of check-posts. It could have ended the prevailing and staff strength and also for betsystem of presumptive or arbitrary method of tax assessment Butworking no politician wants to the risk the displeasure ofbyaofficers few thousan ter amenities for longer and encouraged the business to keep proper accounts and to file honest hours for the check-posts. returns. employees and upset the apple cart.

Transporters have rightly criticized

But there is the difficulty: More than three-fourth of state’s own revenue is the primitive methods of inspecfrom the 4700 strong Sales Tax department and per employee contribution tion that damage the consignments and the general belief is that 100 % was Rs 6.76 crore during the last fiscal. Better tax yield as well as improved computerization of documents and quality and efficacy of administration are assured if the above said basic reform is implemented. But no politician wants to risk the displeasure of a use of sophisticated scanners will few thousand employees and upsetting the apple cart. improve the quality of inspection, eliminate corruption and reduce Check Posts on Kerala borders costs. But this has not happened Box-1soCheck on Kerala In order to haveborders an effective check over the operation of inter-state veand is unlikely to happen, long Posts hicles and for enforcement the provisions of the Motor Vehicles Act,enforcement o In order to have effective check over theof operation of inter-state vehicles and for as one hundred percent physical in- an Taxation Act and theTaxation rules made 12 Motor Vehicles Check12 Motor Vehic provisions of the Motor Vehicles Act, Actthere and under, the rules made there under, spection is mandatory and insisted Postsathave been established at obtain borders.temporary Facilities topermits obtain temporary on at the check-posts. have been established borders.

Facilities to and to paypertax are provide mits and to pay tax are provided in these check posts.

These check-posts check posts. These check posts are headed by Motor Vehicle Inspectors and assisted by Assistant M Industry uses random sampling are headed byare Motor Vehicle Inspectors assisted by Assistant Motor Inspectors. check posts functioning round theand clock. methods based on well estab- These Vehicles Inspectors. These check-posts are functioning round the clock. lished statistical theories in order to reduce the volume of physical Sl Motor District High Way- Route inspection. Such methods are used No Vehicles extensively in quality control and even safety audits. Internal Revenue Check Post in Service (IRS) of USA uses the staKerala tistical random sampling techniques and subjects only 1.1 % of the tax 1 Amaravila Thiruvananthapuram Thiruvananthapuram accounts to detail audit. Random - Kanyakumari selection is made by the computer as in the case of a lottery. The ac2 Ariyankavu Kollam Punalur counts selected in random are then Thenkassi subjected to detailed investigation and there is no escape if caught 3 Kumily Idukki Kottayam - Madurai guilty. Fear of God compels the vast majority to comply and tax 4 Walayar Palakkad Palakkad leaks get minimized at very low Coimbatore costs.

.

Income Tax and Service Tax departments in the country are getting ready to adopt this system practiced in the USA and the developers of SUVEGA packages for Karnataka sales tax have been recommending the use of random sampling techniques for Karnataka checkposts. This writer had pleaded with Viswanatha Menon as well as Thomas Isaac for the switch over to random sampling techniques in the entire Sales Tax administration in Kerala, during their tenure as Finance Ministers.

5

Velanthavalam

Palakkad

Chittoor Coimbatore

6

Gopalapuram

Palakkad

Palakkad- Pollachi

7

Vazhikkadavu

Malappuram

MalappuramGudallur

8

Sulthanbathery Wayanadu

KozhikodeMysore

9

Kattikulam

Wayanadu

Mananthavady Mysore

Opposition from the department of commercial taxes and their employees were natural. The switchover would have brought in the much needed transparency in the administration of sales tax, as well

10

Iritty

Kannur

Thalassery Virajpett

11

Manjeswaram

Kasaragode

Kannur - Mangalore

12

Neeleswaram

Kasaragode

Kannur - Mangalore

May 31 - June 30, 2015

PASSLINE

16

Narendra Modi market watch

Promises still at large

V Raghavan

D

eliberations and discussion about the present economic stature of the country on the completion of one year in power by the NDA government headed by Narendra Modi are abuzz in the media. Even the common man is counting the merits and demerits of this government and comparing the situation one year before, during the UPA rule. Business people and industrial tycoons’ expectation was sky high about the reforms which promised

by Modi during the election campaign. The mercury in the stock market was also high and it was hovering above the conventional levels with a bull run in February PASSLINE

2014 on the expectation of Modi coming as Prime Minister. Though there are some opinions from certain quarters that one year period is too small to assess a government.

However, in this column, I am trying to decipher from the clamour and mess what exactly the present situation of the economy and the stock market is and how far Modi’s measurers rejuvenated the sentiments.

Due to the larger than life media reports about Modi and his ability to rule the country comparing his ten- year regime in Gujarat raised high hopes among the common people and the economy. The speeches made by Modi and his

May 31 - June 30, 2015

party men fuelled the aspirations and it was reflected in the stock market. But the maiden Budget

by Arun Jaitely , the Finance Minister of Modi Government on February disappointed the industry and the market. The issuing of notices to foreign institutional investors ( FIIs) on minimum alternative tax (MAT) spoiled the sentiments of euphoric FIIs who are the largest investors in the country . When Prime Minister Modi, globe- trotting to invite foreign fund flow here, foreign investors were exiting from Debt and Equity Investments. The government did some damage control exercises by appointing a committee to look into the matter and review the MAT issue , but overall market confidence has come down drastically.

One who is not biased about Modi and his rule can find some good

initiative from his side. The Jan Dhan Yojana – opening bank accounts to poor with an insurance guard , the direct credit of subsidies in beneficiaries bank accounts - due to this, the government saved around Rs 5000 crore till the date , clean India campaign are few good measurers taken by the government. The reforms like FDI limit increase in Insurance, Defence, Diesel price de control, new road projects and Coal Block & 2G-3G auction etc will benefit the country in coming years. The novel idea like Make in India aiming foreign investments will certainly merit the country . To augment growth in small industry sector, the implementation of Mudra Banks will enrich the cash strapped small entrepreneurs. New Visa issuing policy – Visa on Arrival -- will help tourism sectors too.

The overall economic atmosphere in the country is conducive to unroll another set of reforms.

Fall in global crude price helps government to earn more tax and cut subsidiary burden. This year monsoon forecast is below average; still the country is expecting better rain fall than last year. Also crude price is expected to stabilize present level for some more time without much volatility. These two factors enable the government to control the inflation. If inflation is under control , RBI will reduce the base interest rates and this helps overall growth of the economy.

Presently tax collection is satisfactory, subsidies are controlled and disinvestment programmes are also

17 doing well which will give a fillip to revenue deficit.

In last budget, there was a gold scheme announcement; but it was not clear and nothing was heard about it further. The recently announced scheme says that general public and other large possessors of gold or jewellery can deposit with banks and the people will get an interest according to the value of the jewellery . Whenever the depositors need the gold , they will get it either by gold or by cash according to the prevailing market value with same quantity and purity also with interest. The people will get the choice between the gold or cash in this scheme according to their requirement. This scheme will enable to convert unproductive gold and jewellery into productive purpose. For government, this scheme will help to save huge foreign currency by reducing the gold import.

The pricking issue for the government is lack of majority in the Rajya Sabah. This will hamper the aspirations of the government to speed up the reforms. Though the government’s ambitious project Make In India has been grabbing a lot of space and time in media , nothing has materialised so far. Industrial output is very low and also there is no substantial improvement as regards unemployment. The financial results of the companies are below the expectations and this is reflecting in the stock market.

To fuel the industrial growth, the government should take measures to improve the rural demand and living standard. Commodity prices are somehow stable now. Due to sluggish industrial production metal prices are still at lower rates and oversupply of Shell Gas from the US is pulling back the crude prices globally. If OPEC countries heitate to cut production of crude, the prices will never go above 70 dollar per barrel in near term. Gold prices are now trading 1200 dollar range per ounce. India and China are main importers of the yellow metal. Due to recent rise in stock market in China, gold investment in that country is coming down and its gold import stands 9 months low now. If gold monitoring scheme of India becomes a success, import from India also will come down. This will affect gold price in the country . So it is better to sell gold on rise and don’t invest huge amounts in gold at least for two three years Globally all economies are facing difficulties right now. China’s industrial production is coming down drastically every month and

fall of crude price affects middle east countries and Russia etc. For controlling expenses most of the countries are cutting down developmental projects, this affects employment opportunities.

Euro nations are not showing any recovery till now. Overall the US economy is in better shape. If the Federal Reserve decides to hike the interest rates , there will be an exodus of funds from emerging nations to the US likely.

Indian stock market is now on fair value. If we have good monsoon,

the inflation rate will come down . This coupled with interest rates reductions and Make in India campaign success will certainly boost the sentiments of the Indian stock market. A bull run is expected if the half yearly results of companies come up to the expectations.

It is better to keep on investing in quality company stocks. Keralabased companies like Federal Bank, South Indian Bank, SBT, Wonderla, Muthoot etc are best for investment in long term. Add small sum of investment on every fall of

the market and keep as long as a term investment. Large cap shares like Tata Steel, Coal India, SBI, Bajaj Auto and mid cap shares like Dishman Pharma, KEC, Sintex, Trident etc are also good. Generally Private sector banks, Cement, Infra-Construction, Agro, Chemical sectors expect to show better performance in coming years. Investment in good companies in these sectors helps to get more returns.

(Raghavan is the Regional Head—Kerala of Nirmal Bang Securities)

May 31 - June 30, 2015

PASSLINE

18 CAPITOL MALL

TAKING SHOPPING, ENTERTAINMENT, DINING

TO A WHOLE NEW LEVEL

Passline News Service

S

hopping malls, modern man’s trend setter, is a hub of entertainment and fashion that fulfills all requirements under one shade.

In redefining the landmark, it has exquisitely redefined the life style of the people.

Capitol Mall, the biggest project of Emad Builders, Kannur, has indeed redefined the landmark of Kannur adjoiningly changing their lifestyles too. Inaugurated by the District Collector of Kannur, Shri. P Bala Kiran IAS, on 16th June 2014, in the presence of District Panchayat President Prof. K A Sarala, Municipal Chairperson Roshini Khalid and prominent personalities. Capitol Mall is nearing to celebrate its first anniversary. A mall is not just a shopping space but a place to spend quality time with family.

One of the largest malls in Kannur, it offers diverse retail outlets, food court, big anchor shop, and game zone. Stretching upto 6 floors and 2 basement parking floors, the mall has been structured and designed to enhance the convenient shopping experience of the people.

Ground plus two floors of retail outlets and the food and game zone of the 3rd floor shape space for a healthy consumerist atmosphere. 4th and 5th floors are presented with health club, prayer hall, conference hall, board room, office space etc.

Encompassing a huge list of brands, it has enhanced the accessibility to almost all major brands under one roof in their own city. Max Fashions, Naturals Beauty Salon, Women (W), V. (Van Heusen), Louis Philip, US Polo Assn, Planet Fashion, People, Reebok, Adidas, Archies, John Players, Basics Life, Bata, Lee, Scullers, Urban Touch, 1st Step, Indigo Nation, Portico, DC Books, Basel Watches, Euphoria, Four

K P Muhamed Ashraf PASSLINE

May 31 - June 30, 2015

R, My Bags, Lee Foot, Royal Gold, Sangeeth Mix N Match, Momaiz, Adora, Zara Abaya, Capital Sports, 3G Mobile World are the major brands opened for the unique shopping experience. Greens Hypermarket and Foodies Food Court have enriched the shopping experience at Capitol Mall. Chiking, Rahmaniya Chicken, Noodle King, Dosa Tawa, US Pizza, Arabian Bites, Malabar Bites. Merriboy Icecream etc tickle the taste buds of food lovers. 7D Motion Picture Fun for big and little and many new games at the game zone entertain kids and adults alike.

Emad Builders, pioneering promoters of commercial building in Kannur, has completed two main projects including Capitol Mall and Emad Tower, Fort Road, Kannur.

Company established in 2007 is treading towards the growth of the city with an upcoming project, Kannur Central at MG Road, Thavakkara and a shopping complex at Payyannur.

Creative in thinking and judicious in planning, the company has a bench of 8 Directors – E K Mohammed Ashraf, P M Mohammed Shareef, K Mohamed, A Hyder Ali, P P Musthafa, Najeeb Kadiri, P M Rasheed, with K P Muhamed Ashraf as the Managing Director leading its members to the full score. Enthusiastic and effective in their effort towards core, the company has wide ranging plans including Micro-malls in other major cities and towns of the state, equally welcoming the interested to join hands with them.

E K Mohammed Ashraf

P M Mohammed Shareef

K Mohamed

A Hyder Ali

19

EMAD TOWER

P P Musthafa

Najeeb Kadiri

P M Rasheed

COMMERCIAL COMPLEX PAYANNUR May 31 - June 30, 2015

(Response feature)

KANNUR CENTRAL

PASSLINE

20

By Rajiv

W

Warren Buffet’s 10 lessons for success

arren Buffett is undeniably the most successful investor in history. His success is attributed by some to his sharp business acumen, understanding of businesses while others call it luck. Numerous books have been written in an attempt to analyse the factors which led to his extraordinary success. However, replicating similar results is no cake walk.

to make the business grow and sustain. If earnings are taken home as dividends from a flourishing business, it does not help the very business which helps you earn, to grow. Dividends are popular but they shouldn’t be the only thing one must have an eye on. It is important to track the utilisation of funds back into the business to continue growing.

Success at Buffett’s rate is not a result of following a set formula.

It was a continuous process which was followed. Almost like a way of thinking. Discipline, perseverance and effective execution play a pivotal role in his success story.

When it comes to investments, figure out the cash in hand and the fixed income sources one may invest in. The returns must be enough to sustain your current lifestyle. After this is sorted, money can be invested in other options which have a possibility of high returns against high risk. The strategy adopted must ensure that investment options are balanced.

Chalk up a plan While making an investment, it is important to set a goal. Invest in value and then be patient. Quoting Buffett’s famous words, “the stock market is a device for transferring money from the impatient to the patient.” So once your homework is done and a choice is made, stick to the plan.

Strategise and execute

As Buffett said, do not put all your eggs in the same basket.

Time is money and has to be managed accordingly

“Price is what you pay, value is what you get”, said Buffett. Whether it is going in for an investment or making any other purchase, these words ring true. Looking for value is the underlying principle to be followed.

Warren Buffett said, the rich invest in time and the poor invest in money. Indeed time is one commodity which is equally distributed to everybody. Tasks which are not related to his investment process were either delegated or eliminated.

Time and energy spent on trivial tasks can be channelised on the ones topping the priority list.

Plough back to reap benefits

Develop managerial skills

Retain the earnings and invest it back in the business. The idea is

A manager sets goals for the team and drives them to achieve those.

Invest in value

PASSLINE

May 31 - June 30, 2015

Keeping the team motivated, providing appropriate financial incentives and addressing any other concerns to the team’s satisfaction are where managerial skills are tested. Not everybody is born as a good manager but these skills can definitely be developed.

Learn, Read, Think Warren Buffett said that investing in yourself is the best thing you can do. Nobody can take away talent from a person. Irrespective of the economic conditions, talent will always fetch proportionate returns.

The value does not deteriorate.

Hence, it is important to invest in developing one’s skills. Staying updated helps in making intelligent decisions. Buffett’s wise words: You can’t reach success in investment if you do not think independently.

Everyday advice Create more than one source of income. Do not depend on your job alone. Make investments to create a second source of income. Think twice before buying anything. Retail therapy does not really help in the long run. If one continues to buy things which are not needed, there will be a stretch situation someday for making necessary purchases.

Investment advice Diversify the portfolio. It is important to balance investments on the basis of fixed income, returns and risks. Also, while taking risks, tread cautiously. Like Buffett said, never test the depth of water with

both feet. Only invest in businesses which you understand completely.

Remember, it is your hard earned money invested there and you need to be absolutely sure about how it will be utilised to fetch returns.

Be your own advisor Many people make investment decisions based on other people’s opinions. This kind of an investment is the most risky investment and we are not even considering the inherent risk of the option chosen here. The investment option chosen by a friend may be best suited for their lifestyle and future plans. But that does not necessarily make that option a good fit for you. So think for yourself, seek clarity on your goals and then make a wise investment choice. Like Buffett said, a public opinion poll is no substitute for thought.

While we hope that these rules inspired by Warren Buffett will help you in making choices, we leave you with the two golden rules quotes by Buffett. #1 Never lose money. #2 Never forget rule number 1.

(The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India’s first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.)

21 INSURANCE COVERAGE

Many companies are yet to include this in their coverage plans because of several complexities involved

S

eetha, a 44-year-old IT professional was suffering from chronic back pain which developed out of her lifestyle. She was advised by a friend, who was also a doctor, that Ayurvedic treatment would be very effective for her. She consulted an Ayurvedic practitioner and came to know that the treatment requires ten sittings and would cost her around Rs 75,000.

As Seetha had a health insurance with a sum insured of Rs 600,000, she went ahead with the treatment, comforted by the fact that the sum insured more than covered her treatment cost. It was only later that she came to know about a fact that had escaped her all along -- her plan would not cover expenses incurred from Ayurvedic treatments.

Several alternative treatments like Ayurveda, Sigdha, Acupuncture, Homoeopathy etc are very popular in India and have proven cures for many diseases. Many people who prefer these traditional therapies are now faced with a situation where in their health insurer routinely denies coverage for such treatments.

IRDA Regulation for Health Insurers An IRDA regulation issued in 2012-13 suggested that health insurance companies should cover non-allopathic and alternative treatments. But many companies are yet to include this in their coverage plans because of several complexities involved. Some insurers cover alternative treatments undertaken in government hospitals and medical colleges. But many government

hospitals do not have the facilities for alternative treatments. Also, most insurers who cover these treatments come with conditions and caps on the amount of money allocated towards it.

Why insurers are reluctant to cover alternative treatments Many health insurers still consider alternative treatments to be outside mainstream healthcare and do not cover them. However, there are some good reasons for this reluctance. Treatment costs vary a lot in various non-allopathic treatments.

Without a central governing body for all alternative systems of medication, there is a lack of clarity about the procedures. This makes it difficult for health insurance companies to underwrite policies in this sector.

Secondly, many patients are adopting alternative medications in combination with allopathic treatment.

Costs vary here too, making it very difficult for insurance providers to offer coverage. To tackle these situations, insurers have decided to put a cap and cover only certain selected procedures in alternative treatments.

Also, most health insurers do not cover outpatient treatments. This is also a reason why alternative medication systems were left out of the ambit of health insurance cover.

tive treatments, one will have to buy a standard health insurance cover which will also cover nonallopathic medication after reading all conditions like amount, clinic or hospital networks, inclusions and other terms carefully.

Health insurance companies however strictly do not cover Ayurvedic treatment if undergone in institutions not recognised by the government or accredited

by Quality Council of India or National Accreditation Board on Health.

Some health insurance plans to consider for alternative treatments Here is a look at some popular health insurance plans which offer coverage for non-allopathic treatments.

New India Insurance Mediclaim Policy: New India Insurance Mediclaim Policy covers Allopathy, Ayurveda, Homoeopathy, and Unani systems of medicine.

Non-allopathic forms of treatment come with a cap. All such claims are covered only to the extent of 25 per cent of sum insured.

Further, the policyholder needs to avail such treatments at a government hospital to be eligible for the claim.

Chola Individual Healthline Insurance Policy: Chola MS Individual Healthline is a comprehenThe growing popularity of alternasive health insurance policy that oftive medicine is putting a pressure on fers cover for a range of healthcare insurance companies to offer coverneeds, including Ayurvedic treatage for them under standard health ments. The policy offers cashless covers. While some companies hospitalization at over 2,600 hospioffer cover for alternative treatments tals and a direct claims settlement in their group policies on request, through Chola MS Help with no some others have started offering third party administrator involved. protective cover in independent For Ayurvedic treatments, benefits policies. To get coverage for alternaare offered up to 7.5 per cent of Coverage of Alternative Treatments

the sum insured (specific treatments only) and with a 20 per cent copayment clause.

TATA AIG Medi Prime -- Cashless Health Insurance: This plan offers comprehensive hospitalisation coverage without any sub-limits and cashless hospitalisation at about 3,000 hospitals. The policy offers Ayush benefit for covering nonallopathic in-patient treatments like Ayurvedic, Unani or Homeopathywith a condition of coverage of up to Rs 20,000 if the sum assured is less than Rs 500,000, and Rs 25,000 if the sum assured is over Rs 500,000.

HDFC Ergo Health Suraksha: This plan offers cashless claim service at about 4,800 network hospitals, with coverage for prehospitalisation expenses up to 60 days and post-hospitalisation up to 90 days. It covers inpatient treatment medical expenses under Homeopathy, Sigdha, Ayurveda or Unani, but treatments under both allopathic and alternative medicine for an ailment will not be covered for the same disease.

Conclusion If someone is specifically opting for non-allopathic covers in any preunderwritten policy, the premium turns out to be higher than that of a regular health care policy. In most cases, if you are approaching any alternative systems after consulting an allopathic doctor, you will have to get a remark from the allopathic doctor allowing you to proceed with alternate treatments. So, if you believe in the powers of alternative medicine, it is a good idea to check this coverage at the time of buying a health cover. However, this cover need not be the main criteria for zeroing in on a health insurance policy.

May 31 - June 30, 2015

PASSLINE

22 PROJECT OPPORTUNITIES

COLOURED METAL ROOFING SHEETS Prof Job K T

T

he concept of roofing was driven by human need for protection against climatic conditions, protection of personal belongings, production processes etc. Roofing accounts for 25- 30% of total building construction cost.

The roofing options available and their market shares include Corrugated Galvanized Iron (CGI) Sheets (13.5%), Colour Coated Metal Sheets (0.4%), Aluminium Corrugated Sheets (11.%), Asphaltic Roofing (0.70%), Red Mud Plastic (0.1%), PVC (1.70%), Reinforced Cement Concrete (RCC) (55.0%) and Clay Tiles at (17.6%). Coloured metal roofing is seen growing popularity today and besides the obvious use in industrial structures, manufacturers are positioning these for residential and retail buildings as well. The market size for coloured metal has grown from 45,000 tonnes per annum to about 200,000 tonnes per annum in a short span of a few years. Growth rate is estimated at 15-20%.

Colour Coated Galvanised PASSLINE

Steel(PPGI),Pre-painted Aluminium – Zinc Alloy Coated Steel(PPGL) and Galvanised Iron(GI) Sheets are popular among coloured metal roofing sheets.

These have excellent corrosion resistance, these sheets have become the most preferred material for various construction purposes, particularly roofing and walling.

Coated steel sheet is a unique building material that combines the strength of steel with excellent corrosion protection of zinc or zinc/aluminium alloy coatings.

It can be punched, pressed, roll – formed and joined into a countless number of structural and decorative building, PPGL sheets are available in various colours--sky blue, royal blue, azurite blue, terra cotta red, off white and mist green.

They are widely used as the wall or roof of factory, warehouse, garage, exhibition center, cinema theatre and workshop sheds, godowns etc. Industrial roofing includes: Industrial buildings and sheds, warehouses and logistic centre, airports and aircraft hangers, barracks and makeshift habitats, cold storage chain, insulation for boilers, cladding and wall panels, insulated sandwich panels, etc. In Kerala coloured metal roofing sheets are used widely on roof tops of RCC roofing to reduce heat and water proofing purposes. The coloured metal (aluminium) roofing sheets have certain inherent advantages such as: • Long Life: Aluminium roofing sheets can withstand the harshest of climatic conditions. Being

May 31 - June 30, 2015

•

•

•

•

•

corrosion-resistant (when used with aluminium alloy) these sheets offer unmatched protection and peace of mind for a lifetime.

No maintenance: Aluminium roofing sheets do not require any maintenance irrespective of the climatic or environmental conditions. Anti-corrosive properties keep them unaffected… even during the monsoons.

100% rust-proof: Aluminium never rusts due to its innate unique properties. Hence, Aluminium roofing sheets are widely used in aggressive and corrosive atmospheres in preference to galvanized steel.

Looks like new forever: Due to its anti-corrosive property, aluminium roofing sheets offer an everlasting shine. This feature ensures to get a unique combination of everlasting protection and lasting aesthetic appeal.

Light, but tough: Aluminium roofing sheets epitomize one of aluminum’s outstanding properties as a building material, due to their lightness. They are about one third the weights of corrugated galvanized steel sheets and one seventh that of standard asbestos corrugated sheets. Thus they are quite easy to handle and install. Moreover, they can easily be installed on a reasonably light supporting structure.

Better thermal insulation: Another unique feature of aluminium roofing sheets that makes them ideal for roofing is

•

•

•

•

their thermal insulation property. Though aluminium is a good conductor of heat, its very high reflectivity of radiant heat & light (75%-80%) keeps the temperature 6° C cooler in summer, while its low emissivity cuts the heat losses in winter.

No creep damage: Unlike heavier materials like lead and zinc, aluminium supports its own weight in widely varying temperatures without creep or damage to the roofing sheet. It is therefore suitable for both low and high pitched roofs. Due allowance should however be made for thermal expansion and contraction which is more for aluminium than for galvanized iron.

Non Toxic: Premises intended for the storage, handling and preparation of food & beverages demand non-toxic, nonabsorbent and clean surfaces.

Aluminium roofing sheets satisfy all these requirements, and are hence preferred. Moreover, aluminium roofing sheets are also devoid of bacterial and fungus infections.

Easy and fast fabrication: Structures using aluminium roofing sheets can be dismantled, transported and re-erected at a different location with ease.

Since aluminium is not brittle, aluminium roofing sheets do not break or crack during or after erection.

Safeguards against wind & lightning: Aluminium roofing sheets

Sl. No.

Particulars

Cost (Rs in lakh) 23

1

Land

Own

The approximate investment requirement for setting up a 6.0 lakh sq m of corrugated coloured metal roofing sheet per annum will cost Rs 565.00 2 Buildings 30.00 lakh as indicated below:

Sl. No.

3

machinery & Equipment

4

miscellaneous fixed assets

100.00

Particulars

Cost

(Rs in10.00 lakh)

1

5 Land Preliminary and pre-operative expenses

11.00Own

2

6 Buildings Contingency@ 10%

30.00 14.00

3

7

4 5

machinery & Equipment st

100.00

working Capital- (1 Year)

miscellaneous fixed assets

42

400.00 Total

Preliminary and pre-operative expenses

10.00

565.00

11.00

6 Contingency@ 10% 14.00 are strong enough to resist wind forces. They offer the safest possible st shelter during electrical storms, provided there is adequate earthing. It is expected financial institutions provide term loan to the extent400.00 of 75% of the 7 that working Capital- (1willYear) • High resale value: Even after years of usage aluminium roofing sheets this, the unit is also eligible for 565.00 don’t lose their value. Since they do not suffer any wear and tear, you fixed assets amounting to Rs 115.00 lakh. apart from Total can, at any time, recover up to 50% of the money you’ve paid for them. working capital loan of Rs 300.00 lakh( 75% of working capital) in the first year). The • Fire resistance: Aluminium roofing sheets are non-combustible and It isthat expected that financial institutions will provide termtoloan the extent It is expected financial will provide term loan thetoextent of 75% of the non-flammable. They are also non-sparking. promoters are expected to institutions bring in Rs 150.00 lakh capital. of 75% of the fixed assets amounting to as Rsequity 115.00 lakh. Apart from this, unit is alsoto eligible for working of this, Rs 300.00 lakh(is75% • Green metal: Aluminium is a green metal that’s extremely eco-friendly. fixed assetstheamounting Rs 115.00 lakh.capital apartloan from the unit alsoof eligible for working capital) in the first year). The promoters are expected to bring in It’s recyclable. working capital loanlakh of Rs 300.00 lakh( 75% of working capital) in the first year). The Rs 150.00 as equity capital.

The proposed unit will manufacture coloured metal roofing sheets mainly The financial viability of setting up 6.0 squpm 6.0 roofing sheets per annum is provided below: Theexpected financialto viability of Rs setting roofing sheets per annum is Pre-painted Aluminium – Zinc Alloy Coated Steel(PPGL) and Colour promoters are bring in 150.00 lakhsqasmequity capital. provided below: Coated Galvanised Steel (PPGI) roofing sheets.

The PPGL roofing sheets are made in the corrugation process. In this process, sheet metal is pulled off huge rolls and through rolling dies thatfinancial Sl. The viability of setting up 6.0 sq m roofing sheets per annumamount is provided below: Particulars form the corrugation. After the sheet metal passes through the rollers it is automatically sheared off at a desired length. The standard shape of No. ( Rs in lakh) corrugated material is the round wavy style, but can be easily modified to a Sl. Particulars amount variety of shapes and sizes by simply changing the dies. In Automatic41 Roll 1 Sales income from roofing sheets 4800.00 Forming Line, while the coil stock is passing through succession contouredNo. ( Rs in lakh)

rolls the material bends to its desired shape, after final shape is achieved 2 Cost of raw materials, salary, power, 4600.00 x Green metal: aluminium is a green metal that's extremely eco-friendly. It's recyclable.

1 Sales income from roofing sheets 4800.00 profile straighter gives straightness to out going profile. depreciation, sales commission, interest on term ISThe 1254 covers quality requirements of corrugated sheets in 2 proposed unitthe will manufacture coloured metal roofing sheetsaluminium mainly Pre-painted Cost of raw materials, salary, power, 4600.00 India. aluminium – Zinc alloy Coated Steel(PPGL) and Colour Coated Galvanised Steel (PPGI) loan, administrative expenses etc.interest on term depreciation, sales commission, The rawsheets. materials required for the production of corrugated roofing roofing sheets are PPGL and PPGI. Sheets having the specifications of aluminium administrative 3loan,Operating Profit expenses etc.

200.00 – The zincPPGL alloyroofing coated steel combination (PPGI) and Pre-painted aluminium sheets are made in the corrugation process. In this process, sheet metal is 3 Profit 200.00 – zinc alloy coated steel(PPGL) are used for corrugation. These materials 4Operating Break even point 60% pulled off huge rolls and through rolling dies that form the corrugation. after the sheet metal can be either imported from China or sourced from Hindalco, Balco etc.

4 Break even point 60% passes through the rollers it is automatically sheared off at a desired length. The standard 5 Pay Back Period Less than 3 years The actual cost of project would depend upon the site selected for the shape of corrugated material is the round wavy style, but can be easily modified to a variety 5 Pay Back Period Less than 3 years project, the type and size of buildings considered, the facilities and feaof shapes and sizes the by simply changing the dies.

In automatic Roll Forming Line, whileconthe 6 Internal Rate of Return 30% tures proposed, sophistication of technologies and equipments 6 Internal Rate of Return 30% coil stock isHowever, passing through succession the material bends its lakh desiredsq m templated. a typical unitcontoured havingrolls a plant capacity of to6.0 ofshape, corrugated coloured metal roofing sheet annumto out is proposed after final shape is achieved profile straighter givesper straightness going profile.in the PPGI and PPGL corrugated coloured metal roofing sheets have certain product opportunity. The project particulars are given below: advantages like aesthetic look, climate resistance, fire-proof, vivid colours, Sl. No. Description Requirement maintenance free, long life, anti-corrosion and simple tohave install.

PPGI and PPGL corrugated coloured metal sheetshave certain advantages PPGI and PPGL corrugated coloured metal roofing roofing sheets certain advantages like like 1 Land 50 cents The climate market for colouredfire-proof, metal has grown from 45,000 tonnes(100free, lakhlong life, antiaesthetic look, resistance, vivid colours, maintenance 2 Buildings 2000 sq ft aesthetic look, vivid colours, maintenance free, long sq m) perclimate annumresistance, to about fire-proof, 200,000 tonnes (450 lakh sq m)per annum in life, a anti3 Complete plant & machinery consists of sheet roll forming Rs 100.00 lakh short span to ofinstall. a few years. Growth is estimated at 15-20%. corrosion and simple corrosion and simple to install. machine( cladding) with computer control, de-coiler, The requirement of coloured roofing sheets in Kerala is estimated to be crimpling machine, corner tile roll forming machine, around 20 lakh sq m by 2015. A growth rate of 20% per annum is forecorrugated sheet bending machine, slitting machine, casted. There are two units functioning in Kerala to meet the requirement of the State with a combined capacity of 10 lakh sq m. manual sheet bending machine etc.

4 Raw materials required are Colour Coated Galvanised 6.5 lakh sq.m The proposal to set up manufacturing facilities for 6.0 lakh sq m of coloured roofing sheets per annum is found to be viable. The financial Steel(PPGI),Pre-painted aluminium – Zinc alloy Coated projections are found to be attractive to plan for investment in Kerala.

Steel(PPGL) 5

Direct employment potential

12 persons

6

Power requirement

30 kw

The entire plant & machinery are available from China, Germany, USa etc. There are The entire plant & machinery are available from China, Germany, USA etc. importers the machinery Indiamachinery from whom theinunit can purchase the machinery.

There areforimporters forin the India from whom the unit can purchase the machinery.

The approximate investment requirement for setting up a 6.0 lakh sq m of corrugated coloured metal roofing sheet per annum will cost Rs 565.00 lakh as indicated below:

(Professor JOB K T is a retired Senior Faculty of Centre for Management Development, Thiruvananthapuram. Presently he is the Director, Enterprise Development Service, Thiruvananthapuram, offering training, consultancy, asset valuation and Quality Management System services to small and medium enterprises. He can be contacted at Mob: 9847135571 or e-mail: jobkt012@gmail.com).

May 31 - June 30, 2015

PASSLINE

24

BEHIND INDIA’S ‘EPIDEMIC’ OF

FARMER SUICIDES

By Beenish Ahmed

A

bout every 30 minutes, a farmer in India is said to commit suicide. The unreasonably heavy rains and unexpected hailstorms that have pounded down across the country threaten to up that alarming figure.

According to one expert, a sudden downpour of hail in the Indian state of Maharashtra laid waste to more than $150 million worth of crops.

One farmer there didn’t even wait for the March storm to abate. After seeing his crops collapse into the mud, 27 year old Sandeep Shindae hung himself from a tree in his field, leaving behind his wife and two young children.

I cannot even afford milk for the children, his widow, Shobha, told the Times of India.

In 2013, Germanwatch’s Global Climate Risk Index ranked India as one of the three countries affected by the most extreme weather events in 2013. The sort of sudden downpours that has wrought havoc on the country’s cotton belt, are on the rise. Scientists have found that they have increased by 50% over the last 50 years.

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May 31 - June 30, 2015

Farmer suicides are doubly devastating because they mark the death of a bread winner, and often mean the loss of a season of crops as well. While the Indian Prime Minister Narendra Modi increased compensation to farming families who’ve lost a loved one to suicide, the vast majority of those promised government aid claim they haven’t received it, even 20 years on.

According to state government records, there have been 40% more suicides in Maharashtra in the last seven months than during the same period last year. Similarly harrowing reports have come from other parts of India.

So far this year, twelve farmers in the state of Bengal and more than 36 farmers in Uttar Pradesh have killed themselves.

In the 20 years since the Indian government first started keeping track of farmer suicides, about 300,000 farmers have ended their own lives. According to the 2011 census, the suicide rate for farmers is 47% higher than the national

average. That rate is even higher in the United States where male farmers are twice as likely to commit suicide than the general population.

While the phenomenon is oftdiscussed in India, it’s not limited to the South Asian state. Farmers around the world have turned to the suicide amid crops failures and livestock diseases. A recent Newsweek article called the phenomenon an `international crises`. Its author, Max Kutner, pointed to several countries where farms have been devastated by suicide.

In France, a farmer dies by suicide every two days. In China, farmers are killing themselves to protest against the government’s seizing of their land for urbanization. In Ireland, the number of suicides jumped following an unusually wet winter in 2012 that resulted in trouble growing hay for animal feed. In the UK, the farmer suicide rate went up by 10 times during the outbreak of foot- and- mouth disease in 2001, when the government required farmers to slaughter their animals. And in Australia, the rate is at an all-time high following two years of drought.

While the increased rates Kutner cited for farmer suicide are often tied to exceptionally difficult years for farming experts, advocates, and industry leaders have all put forth their own reasons to attribute India’s `epidemic’ of farmer suicides to one issue or another. But in reality, the driving force behind the bleak phenomenon is a complex array of intertwining issues make farming an increasingly precarious vocation in India.

Vandana Shiva, india’s most prominent environmental activist, believes genetically- modified seeds-- specifically, those sold by the agricultural behemoth Monsanto-- are driving farmers to lose control of their own farming practices. She’s claimed that the frustrations over Monsanto’s proprietary policies which forbid

25 farmers from planting, selling, or even accidentally growing seeds from Monsanto’s patented crops push farmers to the brink. Shiva and other environmental activists have come to Monsanto seeds as` suicide seeds’.

In 2013, she explained her argument, citing one of Monsanto’s genetically modified cotton seeds as an example. ‘’Monsanto’s seed monopolies, the destruction of alternatives, the collection of super profits in the form of royalties, and the increasing vulnerability of monocultures has created a context for debt , suicides and agrarian distress which is driving the farmers’ suicide epidemic in India’’, Shiva wrote. ``This systemic control has been intensified with Bt cotton. That is why most suicides are in the cotton belt.

But many researchers have started to take issue with the notion that genetically- modified crops like Monsanto’s Bt cotton are to blame for India’s epidemic of farmer suicides. Some have pointed out that Indian farmers continued to purchase Monsanto seeds even as activists railed against them --and for good reason: because it proved profitable to do so.

For its part, Monsanto has argued that its crops require less pesticide purchase and less los of yield-meaning that farmers who opted for its genetically- modified seeds would be more successful than those who use traditional seeds.

But Shiva has countered, claiming that Monsanto drove up the price of seeds 8,000%-- and that the high costs of purchased seed and chemicals have created a debt trap’’.

Since debt is a major cause to farmers’ despair, however, it’s not just agriculture companies like Monsanto who are responsible.

For those seeking loans to pay higher upfront costs for Monsanto seeds, unfair lending practices increase their financial woes.

Anoop Sadanadan, a professor of political science based at Syracuse University, has argued that farmer suicides should be attributed not to agricultural practices but rather financial ones. In a paper published last year, he noted that farmer suicides were concentrated in five of India’s 28 states-- and that those five offered the least institutional credit to farmers, forcing them to take out private loans at interest rates as high as 45 per cent.

Government policies towards agriculture may also bear a part of

the blame for imposing additional hardship on farmers-- or rather, for suddenly stopping to insulate them from it. The rate at which farmers committed suicide saw a spike in 1997-- the same year that the government removed subsidies for cotton.

Climate change has increasingly been cited as a major culprit to farmer suicides in India. Although it’s a difficulty trend to measure, farmer suicides tend to increase along with extreme weather phenomenons. And extreme weather is becoming more and more common in India.

In 2013, Germanwatch’s Global

Climate Risk Index ranked India as one of the three countries affected by the most extreme weather events in 2013. The sort of sudden downpours that has wrought havoc on the country’s cotton belt, are on the rise. Scientists have found that they have increased by 50% over the last 50 years. Scientists believe that such devastating events will only increase. India’s Intergovernmental Panel on Climate Change has predicted that rainfall patterns in peninsular India will become more and more erratic, with a possible decrease in overall rainfall, but an increase in extreme weather events’’.

Often years with the most calami-

tous weather mean hikes in farmer suicide. In 2009, for example, more than17,000 farmers killed themselves-- a six year high according to the National Crime Records Bureau. That year India saw the worst drought it has seen since 1972.

Its affects may still be felt by farmers. Devinder Sharma, of the New Delhi- based Forum for Biotechnology and Food Security told the Wall Street Journal in 2009, ``The severe drought has pushed back the household economy of farmers in the rural areas by 10 years’’.

Six years later its effects may still be felt in unbearable ways—Third World Network Features.

May 31 - June 30, 2015

PASSLINE

26 BANKING

Winds of change

in Asia

By Martin Khor

The birth of new development banks led by developing countries and the United States failure to block them are signs of rebalancing of economic power, especially in Asia.

PASSLINE

May 31 - June 30, 2015

I

n the last month, the international media has been carrying articles on the fight between the US and China over the formation of the Asian Infrastructure Investment Bank (AIIB) Influential Western economic commentators have supported China in its move to establish the new bank and judged that President Barack Obama made a big mistake in pressurizing US allies to shun the bank. The US is seen to be scoring an `own goal’ since its close allies the United Kingdom, Australia and South Korea decided to be founding members, as well as other European countries, including Germany and France, and most of Asia.

The US also rebuked the United Kingdom for policies `appeasing China’, but the latter did not budge. The US did not give any credible reason why countries should not join the AIIB. Treasury Secretary Jack Lew said the new bank would not live up to the `highest global standards’ for

governance or lending.

But that sounded like the pot calling the kettle black, since it is lack of fair governance in the International Monetary Fund (IMF) and World Bank that prompted China to initiate the formation of the AIIB, and the BRICS countries (Brazil, Russia, India, China and South Africa) to similarly establish the New Development Bank.

For decades, the developing countries have complained that the developed countries have kept their grip on voting power in the Breton Woods institutions by clinging to the quotas agreed upon 70 years ago. These do not reflect the vastly increased shares of the world economy that the emerging economies now have.

Even the mild reform agreed upon by all --that the quotas would be altered slightly in favour of some developing countries-- cannot be implemented because of US Congress opposition.

The big developing countries have been frustrated. They had agreed

27 to provide new resources (many billions of dollars each) to the IMF during the financial crisis, but were rewarded with no reforms in voting rights. In addition, the unjustifiable `understanding’ that the heads of the Word Bank and IMF would be an American and a European respectively remains in place despite promises of change.

ments, especially the Trans-Pacific Partnership Agreement (TPPA) It seemed suspiciously like a policy of containment or partial containment of China. The US combines cooperation with competition and containment in its China policy, and it retains the flexibility of bringing into play any or all of these components.

So much for legitimacy of lectures about good governance, meritbased leadership and democratic practice, which are preached by the Western countries and by the IMF and World Bank themselves.

China last year announced its own two initiatives, a Silk Road Economic Belt (from Western China through Central Asia to Europe) and a 21st century Maritime Silk Road (mainly in South-East Asia The first initiative will involve infrastructure projects, trade and public-private partnerships, while details of the second initiative are being worked out.

The BRICS countries then set up the New Development Bank, which will supplement or compete with the World Bank, while China created the AIIB to supplement the Asian Development Bank (ADB), which also has a lopsided governance system.

The new banks will focus on financing infrastructure projects, since developing countries have ambitious infrastructure programmes and there is gross underfunding.

Critics anticipate that the new banks will finance projects that the World Bank or ADB would reject for not meeting their environmental and social standards. But that is attacking something that hasn’t yet happened. True, it would be really bad if the new banks build a profile of `bad projects’ that would devastate the environment or displace millions of people without recognizing their rights.

It is thus imperative that the new banks take on board high social, environmental and fiduciary standards, besides having good internal governance and being financially viable. The new institutions should be as good as or better than the existing ones, which have been criticized for their governance, performance and effects. It is a high challenge and one that is worthy of taking on. There is no certainty that the new banks will succeed. But they should be given every chance to do so. The AIIB, in particular, is being seen as part of the jostling between the United States and China for influence in the Asian region.

A few years ago, the US announced a `pivot’ or rebalancing to Asia. This included enhanced military presence and new trade agree-

The AIIB can be seen as a financial arm (though not the only one) of these initiatives. China is also part of negotiations of the RCEP (Regional Comprehensive Economic Partnership) that does not include the US. Last year, it also initiated a study to setup a Free Trade Area of the Asia Pacific, which will include the US. These two intended pacts are an answer to the US-led TPPA. It is still uncertain whether the TPPA will conclude, due both to domestic US Politics and to an inability to reach a consensus yet among the 12 countries on many contentious issues.

the bank rather than pressuring others not to.

The real US concern is that China might establish institutions that weaken its influence on the global economy, said Wolf. He added that this is wrong since reforms in influence in global financial institutions are needed and the world economy would benefit from more long-term financing to developing countries.

China’s money could push the world in the right direction. In a devastating conclusion, Wolf said the world needs new institutions.

``It must adjust to the rise of new powers. It will not stop just because the United States can no longer engage. If the results are not to the United States’ liking, it has only itself to blame.”

The winds of change are blowing in the global economy and many in the West recognise and even support this.—Third World Network Features.

(Martin Khor is executive director of the South Centre based in Geneva, Switzerland)

Meanwhile, prominent Western opinion makers are urging the US to change its policy and to accommodate China and other developing countries. Former Us Treasury Secretary Larry Summers said this past month will be remembered as the moment the US lost its role as the underwriter of the global economic system.

Summers cited the combination of China’s effort to establish a major new institution and the failure of the US persuade dozens of its traditional allies to stay out of it.

He also called for a comprehensive review of the US approach to global economics, and to allow for substantial adjustment to the global economic architecture.

Martin Wolf of the UK-based Financial Times said that a rebuff by the US of China’s AIIB is folly.

This is because Asian countries are in desperate need of infrastructure financing, and the US should join May 31 - June 30, 2015

PASSLINE

28

Kerala

The caged parrot

By C P Jose

D

espite 100% literacy and high social awareness standards, Kerala is a laggard as far as development and industrialization are concerned. The social awareness index of Kerala could be compared to some of the East European countries including the erstwhile East Germany.

Tourism sector, despite having a romantic and mesmerizing scenic beauty, enchanting flora and fauna, the healing touch of Ayurveda, the rejuvenating effects of Yoga, Kerala still could not make it as the must see Number One tourist destination. We have every potential to outsmart the Bahamas or Switzerland or Thailand or for that matter any other tourist savvy destination in the world. Our feudalistic social inhibitions and stigmas, political meddling, trade union highhandedness etc. are all taking the state backwards at a lightning speed.

Kerala economy is always referred to as the “Money Order” economy because of its money order remittances sent by non resident Keralites from abroad to their homes back in Kerala. The mode of remittance might have undergone a PASSLINE

rapid change due to overall technological advancements, but Kerala economy basically is the same. Why there is brain drain from Kerala to all parts of the globe is a question basically to be answered by the diverse political and trade union czars who rule and ruin the State from time to time. The so-called “nokukooli” (money collected by trade unions for allowing other labourers to do the job) is not only a shame but a barbaric act unbecoming of a civilized society. Since all concerned are sharing the booty, leaders and power brokers are reluctant to stop this social evil.

How much investment has taken place in Kerala, other than the much hyped Kochi Metro, is a worthless question as far Kerala is concerned. The industrial unrest, monthly hartaals and all other forms of strikes/agitations are strangulating the industrial sector here.

If we put in a jovial way, we can say that Kerala is a State where husband and wife can’t sit in the same seat in a public transport or unload his goods with his own labourers without paying “nokkuk-

May 31 - June 30, 2015

ooli” or exorbitant rates charged by recognized trade unions. An artist who came to participate in the recently concluded Kochi Biennale destroyed his art works to protest against the high rates demanded by the trade unions for transporting/unloading his artworks. What image a foreign tourist will carry back home about Kerala is not the concern of politicians. But these are clearly worrying facts for an ordinary citizen.

Do we have all weather motorable quality roads? The available public roads and other public places are all highjacked by politicial parties.

The fluttering of trade union flags/ other party propaganda materials on all available public spaces/ government offices/ in front of factories all indicate the level to which our society has stooped down. Probably Kerala will be the only place where public roads are allowed to be highjacked by political parties/other social-religiouscaste organizations for their meetings/demonstrations etc. Rail-road blockades are a common thing in Kerala. When the rest of the world talks about development and

technological advancement, we are busy indulging in “politricks’ and corruption.

Besides tourism, Kerala has all the potential to become the number one state in education & IT hub, high tech industries, world class medical facilities (including Ayurvedic treatment), modern high tech organic farming and Yoga, to name a few. Kerala’s own coir and handloom sector should be given a face lift by modernizing with appropriate changes and adaptation in technology and fashion trends.

Fashion industry and Sport are two areas where the State can have clear lead over others with upwardly mobile, educated and smart youngsters.

We only need to release the parrot from the cage to become one of the most prosperous places in this part of the earth. We should change the rules of the game. We have education but lack sophistication.

I suggest the following measures : 1. Ban Hartaals, rail-road blockages, sit-ins, and all other forms

29 29 of strikes/agitations except those strikes for which legal notices have been served on the authorities concerned.

2. Change the labour rules in such a way that we have a 15-20 page booklet describing the Factory/Labour/Industrial Rules. I understand that China’s labour rules are described in a small booklet unlike our innumerable volumes of various Acts/Rules.

3. Fix hourly rates for hiring labourers.

4. People should be free to bring in/hire any labourer of his/her choice by paying the hourly rate fixed by the Government.

5. Convert Kerala into an investment friendly State by replacing the existing system by a single window fast track clearance with minimum time, say, e.g. one weeks. Fix time limit for submitting application forms and one time correction, if any, for applying Government clearance for any project and afterwards it should be the responsibility of the concerned government office/r to deliver the relevant clearance Certificate/NOC online to the applicant within the stipulated time period.

6. Allow self certification for starting own business to cut down delays. Checking/verifications can be done later. Violations or fraudulent applicants should be dealt with firmly in such cases.

7. Upgrade our infrastructure to international standards.

8. Convert Kerala to a full-fledged modern tourist destination with an aim to make it the number one must-see tourist spot. Being the front line ambassadors of tourism, our auto/cab/bus drivers-cleaners should be given proper training on how to interact with people from diverse cultural/linguistic/racial/ religious backgrounds without hurting anybody’s sentiments.

Rope in college lecturers and school teachers to enroll people at large and other stake holders in diverse fields to take care of the interface so that fast track high end tourism gets a fillip and gets assimilated into our social fabric.

9. Ban all forms of strikes/agitations by Government employees.

10. Convert all Government offices – from Panchayat Office to Secretariat – as Public Relation Of-

fices of the Government where people (read voters) get 100 % sincere, efficient and corruption free fast track service.

11. Remove all ads/hoardings/banners/party flags/news boards etc. etc. from all public places.

12. Ban all students-teachers Unions based on party politics from educational institutions.

However, each educational institution can have one students’ and one teachers’ union without having any political affiliations. However, no strikes/ agitations should be allowed in educational sector.

13. Give ratings for colleges and schools for which Government should pre-fix the criteria.

14. Make digitalized meters compulsory for all vehicles meant for hire., i.e. autos/cabs etc. and ensure that government allowed rates are only charged by them like private buses.

15. Enforce effective/modern way of removal of waste (including e-waste)/garbages.

16. Ensure 24 x 7 uninterrupted supply of water and electricity.

17. Treat women on par (not reservation) with men in all walks of life.

18. Abolish VIP culture. A VIP is none other than the ordinary voter who braving scorching heat and torrential rains stand in the queue and participate in the election to elect a leader of their choice. Except the visiting foreign Heads of States, the President, Vice President, the Prime Minister and the State Chief Minister, no other politician should be treated as VIP. 19. Encourage/assist students who pass out from our colleges to start their own entrepreneur-

ship – either individually or collectively - and give employment to a few fellow citizens rather than hunting jobs. Change the policies.

20. Wipe out corruption. A public

servant receiving bribe should be treated as the enemy of the Government or a traitor and should be dealt with accordingly.

This cleansing operation should start with our leaders to instill confidence among the people.

May 31 - June 30, 2015

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30

FISAT— Education Destination with international standards

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ederal Institute of Science And Technology, popularly known as FISAT, has emerged as one among the most sought-after engineering colleges in South India. The brand name FISAT has high acceptability in the professional educational sector and among corporate within a decade of its existence. After the completion of final allotments of engineering seats under Government quota in 2014-15, the cream of students with top ranks in entrance examinations have opted FISAT for admission. In Management quota admissions too, many students with top marks have joined FISAT. The Institute has attracted students from all over the state, as well as from the other parts of the country and abroad.

In a competitive world, students are looking for quality educational institutions. FISAT has been envisaged and developed to become a ‘Centre of Excellence’ in professional education. From its first batch in 2006 onwards, FISAT had glittering academic performance by producing Top Ranking Students in MG University and outstanding results. This year, FISATians have achieved a land mark by bagging seven top ranks in MTech examinations. FISATians have also brought laurels by setting new records in placements.

Many major multinational companies and commercial banks visited the campus for recruitments and over 357 job offers were received through these placement drives. The Placement and Training Centre grooms students through a series of skill enhancement programs to be the best with the right knowledge, skills and winning attitude.

Research and development activities are considered as an essential component of higher education. The Management aims to develop FISAT as a Centre for Doctoral and Post Doctoral Research in near future. Research activities in the campus are taking wings on this direction. ECE department and CSE department have already received funding from AICTE under Research Promotion Scheme for strengthening their research activities. FISAT Science & TechPASSLINE

nology Park and Research Centre is an ambitious project launched for promoting research.

FISAT is the only self- financing engineering college in Kerala having a super computing system developed in-house. The research team CHPC has partnered with Tata Elxsi, to successfully complete a project under the Industry Institute Partnership programme. They have developed and contributed twenty five projects to IIT Mumbai for bettering the performance of Aakash Tablets. Recently FISAT has developed software named Open Judo which was successfully tried out in the 35th National Games Judo competitions.

FISAT could become a proud five-star partner of the “Ekalavya” Project by IIT Bombay, a program funded by Ministry of Human Resources, Government of India.

The Centre for Continuing Education (CCE) established in this connection has received five- star rating from IIT Mumbai. FISAT has been selected by IIT Kharagpur also as their Remote Centre for implementing the project ‘Eklavya’. FISAT is an approved RESOURCE Centre of IITB for carrying out Spoken Tutorial project, an initiative of NMEICT. The campus vibrates with top class curricular, co-curricular and extracurricular activities like National and International Conferences, Technical Fests, Workshops,

Paul Mundadan Cultural and Sports events. Professional student bodies like ISTE, IEEE, ISA and CSI and Technical Forums like Thyra, Echo, Electra, Idea, Matrix, Forum, MCA Association, Rolling Stone and FFSC are very active in the college. CSI

May 31 - June 30, 2015

Student Chapter, ISTE Student Chapter and IEEE Student Chapter were selected for Best Student Chapter Awards in the past on the basis of their excellent performances. FISAT is now an online examination centre for GATE, MAT, CMAT, VIT, AIEEE, TCS, TOI etc.

The college has been carrying out outreach activities with students’ participation that enhance the quality of life. Anti alcoholic, anti drugs, road safety campaigns, literacy programmes, fund raising for charity, treatment of persons with terminal illness, blood donation programmes, social visits to orphanages and special schools, are carried with much enthusiasm among students.

Students are encouraged to do project works in developing assistive devices for differently abled students. Electronic walking system recently developed for visually challenged is a project work undertaken by group of students. A Day to Remember, Sneha Sangamam are few of the star programmes carried out by the students demonstrating their social commitment.

The nature club SWAN aims at creating a new generation of youth, which recognizes the importance of preserving nature and creates

eco friendly and green solutions.

A high Tech Green House farming project with central and state subsidies is implemented in the campus to inculcate and propagate the modern pollution and chemical free agriculture in society.

FISAT is the first engineering college to implement AICTE tuition fee waiver scheme in the State for economically backward meritorious students. Further the Management offers full fee concession to top rankers up to Entrance rank 2000.

Over 150 students here in FISAT are studying under various scholarships in the college. Managed by a trade union on a ‘not-for-profit’ basis, FISAT has an unwavering commitment to serve society with a focus on excellence.

Federal Institute of Science And Technology was established in 2002 under the aegis of Federal Bank Officers’ Association Educational Society, an initiative of Federal Bank Officers’ Association.

Situated in Hormis Nagar, Mookkannoor near Angamaly, forty acres of green lush campus, the institute is a class apart with magnificent infrastructure and has an ambience that kindles creativity and encourages innovation. A team of eminently qualified faculty with rich experience and high exposure is the backbone of the college. Principal Dr K S M Panicker is heading the academic administration. The management team is truly visionary and inspirational. Superb guidance and support by the team led by Mr Paul Mundadan, Chairman, Ms P Anitha, Vice- Chairperson and other office- bearers.

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Types of inflation that affect our daily finances

``Price hike is the only constant phenomenon”, goes a famous adage. Financial experts feel that controlling food inflation in India is a tough task. When prices are rising, it essentially means the value of the currency is eroding, thereby losing its purchasing power is called inflation. This is the biggest deterrent to any financial planning and drag on your personal finances. From the finance minister, who has to manage the nation’s finances, to a homemaker who manages the finances of home, inflation affects everyone in one way or the other.

Inflation has an effect on all aspects of life and calls for a proactive approach to bypass its impact.

Here is a look at different types of inflation and how they affect your financial planning.

Food Inflation

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he cost of food has constantly been on the rise, pinching the pockets of aver age buyers. Everything from food grain to dairy products and from fruits and vegetables have witnessed a price increase over the years. As per the data released by Ministry of Statistics and Program Implementation, the cost of food in India has increased 5.11 per cent in April of 2015 over the same month in the previous year.

Financial experts feel that controlling food inflation in India is a tough task, as the country is reliant of the monsoon rains for agricultural growth.

Moreover, the policy of raising import tariffs in times of surplus and implementing export bans during shortages has not helped as it has resulted in a closed food economy. Food inflation gnaws at the very core of the common investor’s finances by causing his monthly household expenses to balloon. This reduces the disposable income and may affect monthly payments and liabilities if adequate buffer has not been factored in while taking on those liabilities.

Housing Inflation

Housing is one of the three basic necessities of life. Everything from raw materials to labour and production costs have increased multifold, leaving builders with no option but to escalate the price of real estate projects.

Real estate prices have deflated in the preceding two years because of market disinterest and unsold inventory. Reserve Bank of India data show that the Residential Property Price Index, which measures housing inflation, has been declining since the start of 2014.

Consequently, squeezed for margins, builders have attempted to hang on to prevailing property prices and negotiating downwards only when they are amply sure of the buyer’s seriousness. As a result, property buyers have been confronted with higher purchase costs. This is an indirect effect of inflation on property buyers’ plans.

Medical Inflation

The government has embarked on a serious drive to curb the skyrocketing medical costs in India. Restrictions on drug price rise and technological innovation are part of these. However, this will take some time for the benefits to trickle down to the average individual. For an average household, medical and hospitalisation bills continue to streak upward, straining home budgets and gnawing away at savings each time there is a medical emergency or hospitalisation.

These expenses are only expected to inflate as you grow older, and health insurances, which are a must today, are not getting any cheaper. Only radical surgery of the healthcare industry, aided by targeted health reforms and subsidy interventions by the government, can provide a semblance of succour to the common man.

Retail Inflation

Retail inflation affects every product and service available in the retail market. From an increase in service charges to increasing prices of life-

style goods and services, inflation impacts every individual as his basket of goods to be purchased day in and day out are bound to cut across a vast swathe of products and services that have seen persistent inflation.

Retail inflation is measured by the Consumer Price Index (CPI) which is calculated by taking a weighted average on a specific basket of goods and services.

Lifestyle Inflation

Ten years ago, a simple Sunday exercise to watch a movie with your family of four would have set you back by Rs 200. Today, with rising inflation, the cost of one ticket for a weekend show is Rs. 200. Throw in lunch and your bill for the weekend is easily tenfold what it was a decade ago. That is the effect of inflation -- specifically lifestyle inflation.

Be it an imported paperback, the latest gadget or your favourite pizza -- no category of lifestyle products have been spared the withering influence of lifestyle inflation, causing your monthly entertainment and comfort spends to balloon. As our income increases, our lifestyle too changes -- a bigger house, branded clothes, a more expensive car among other things become de rigueur. These additional expenses too are bucketed under lifestyle inflation.

Education Inflation

When everything from school stationery to tuition fees to transportation charges mount, the overall cost of educating your child swells. During phases of increased inflation, the RBI is forced to up the repo rates, which in turn increases bank base rates for retail loans, including education loans.

As a consequence, you would be shelling out more in terms of interest outgo on the education loan you would take to give your child quality education.

Suppose a degree today costs Rs 500,000 per annum in tuition fees.

Considering that education inflation is around 7-8% per annum, the same course would cost almost Rs 20 lakh (Rs 2 million) in 20 years. So, if you are saving for your child’s higher education, ensure that you account for inflation.

Inflation and financial planning for your family

Considering all these, your expenses increase not just on account of the rise in prices, but also due to an aspiration for a better lifestyle. Although we calculate inflation at a rounded up 5-6 per cent per year, in fact, inflation for different segments vary. Also, since the rise in prices are different for different families and is dependent on their finances, a common number that is applicable to all may not work always. For this very same reason, the financial plans made by your colleague or friend for his family may not work for you. A good practice is to identify how inflation affects your family specifically and factor only that into your financial planning.

May 31 - June 30, 2015

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Neogen Corporation acquires Sterling Test House

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eogen Corporation (NASDAQ: NEOG) has announced that it has acquired the assets of Sterling Test House, a leading commercial food testing laboratory and that the acquired laboratory will serve as a base for the company’s new operations in India. Sterling Test House was incorporated in 1990, and its business has grown to include virtually all of the food safety and water quality testing for major hotels and restaurants in its home region, as well as safety and quality analysis for the country’s expanding nutraceutical market, and growing food export businesses. The laboratory is located in Cochin in the State of Kerala, which is India’s leading region for the export of spices, tea, and fresh fruits and vegetables.

“Sterling’s excellent reputation and 25-year history of providing

exceptional service to the food and nutraceutical industries align perfectly with our goal of establishing a solid presence in India,” said Dr Jason Lilly, Neogen’s vice-president of corporate development. “Much as we did in China, this acquisition is intended to bolster our long-term strategy of accelerating our revenue growth in critical global foodsafety markets. India’s rapidly expanding middle class is increasingly demanding more, higher quality foods — which is an exact match with Neogen’s mission.”

Sterling Test House was one of the first testing companies in India to earn full National Accreditation Board for Testing and Calibration Laboratories accreditation, which enables the laboratory to perform services for the full range of testing customers, and is fully compliant with the Indian Food Safety Stan-

dards Act for food safety testing. The business has 40 employees, who will be continuing with the acquisition. Sterling will be a part of Neogen’s wholly owned subsidiary, Neogen Food and Animal Security (India) Private Limited.

“We are immensely pleased to be joining Neogen,” said Shivdas Menon, managing director of Sterling Test House. “The timing for expansion in India in the food safety market is perfect for Neogen to provide leadership to the Shivdas Menon public and private sectors in their efforts to strengthen the food chain in its entirety.” “ Sterling Group will be now scaling up their other activities like fertilizers, special agro inputs, exports, hi- tech agriculture and agricultural products”, he added.

Federal Bank unveils mobile-based payment application Scan N Pay

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ederal Bank launched Scan N Pay, a mobile application that allows customers to instantly transfer money to any of the Federal Bank accounts through android phones. According to Federal Bank authorities, the hassle free Scan N Pay is a first of its kind mobilebased payment Application which is a world class utility developed in house by Federal Bank. It is currently enabled on android phones and will shortly be made available on iOS, Windows and Black Berry phones.

The customers can make any kind of payments, be it payments at retail stores, restaurants, hotels, home delivery, e-commerce, bill payments or even person to person payments, through this application which can be freely downloaded from App stores. The payee/recipient will key in the transaction amount in his/ her Scan N Pay App and generate

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a dynamic QR code. The payer of the fund will scan the QR code using the Scan N Pay App installed in his/her mobile phone, feed in his/her MPIN and initiate the payment. The transaction is processed instantly with both payer and payee receiving the confirmation instantaneously. This payment system comes in with a lot of advantages.

Through Scan N Pay will be initially available for Federal Bank customers, the bank has plans to onboard customers of other banks that offer General IMPS service from NPCL. Scan N Pay represents the mission of Federal Bank to revolutionise business payments in the country, said Shyam Srinivasan, MD &CEO of Federal Bank. A P Hota, MD and CEO, National Payments Corporations of IndiaNPCl, launched the application at a function held at Federal Experience Centre, Nedumbassery, Kochi.

May 31 - June 30, 2015

A P Hota (MD & CEO, National Payments Corporations of India -NPCI) launching Federal Bank Scan N Pay in the presence of Shyam Srinivasan (MD & CEO, Federal Bank)

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Startup Village wins national award

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Startup Village Chairman Sanjay Vijayakumar and CEO Pranav Kumar Suresh jointly receiving the National Award for Technology Business Incubator from Union Minister of Science and Technology Dr Harsh Vardhan.

10th Biennial meet of Federal Bank legal officers held

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he 10th Biennial conference of Legal officers of Federal Bank was conducted on April 20, 2015 at Federal Knowledge and Development Centre, Aluva. Justice of High Court of Kerala V Chitambaresh inaugurated the session. The bank is convening Legal Officers’ Meet every two years with the objective of providing an opportunity to its legal officers to interact, update their knowledge and to have deliberations on contemporary legal topics.

UAE Exchange India wins award

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AE Exchange India grabbed the prestigious India Travel Awards - South for the category “Best Travel Management Company” at an award ceremony conducted on April 16, 2015 at Novotel, Visakhapatnam. Ganta Srinivasa Rao, Minister of Human Resource Development, Government of Andra Pradesh, was the chief guest at the award ceremony. Indian Travel Awards aim at appreciating the initiatives and developments in travel and tourism industry with utmost dedication. Akula Sreenivas, Branch Head of Srikakulam branch, UAE Exchange India, received the award from the delegates on behalf of Managing Director V George Antony. Sunderraju, Bhaskar and Prashanth, other higher officials of the company, were also present at the function.

tartup Village in Kerala won the National Award for Technology Business Incubator for displaying unparalleled speed of execution by supporting 530-plus nascent firms in three years.

The award consisting of Rs 3 lakh and a trophy was received by Sanjay Vijayakumar and Pranav Kumar, the chairman and the CEO respectively of the Kochi-based business incubator, from Union Minister of Science and Technology Dr Harsh Vardhan at a function in New Delhi, for their not-forprofit firm that is planning to now expand as an electronics incubator.

Official sources said the achievement was “phenomenal” consider-

ing that firms need to be three years old to contest for the award (being conferred on National Technology Day), May 11 has been officially declared as National Technology Day in India to commemorate the first of the five nuclear tests that were carried out on that date in 1998.

The day is celebrated by giving awards to various individuals and industries in the fields of science and industry while Startup Village is only a fortnight more than the requisite qualification.

Today, the state has a Startup Mission to its credit, its 1% budget is kept aside to assist entrepreneurs, and there is an Entrepreneurship Day organized every September 12.

INKEL moots Rs 1,000 cr investment in `Greens Park’

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NKEL Limited has initiated talks to bring an investment of Rs 1,000 crore from the country’s large industrial houses and educational institutions to its mega park being promoted jointly with Kerala State Industrial Development Corporation(KSIDC) aiming at developing Kerala as an educational and industrial hub.

Top-level discussions are on with major industrial houses, and the public-private partnership initiative will invest an additional Rs 50 crore at its park ‘INKEL GREENS’ in Panakkad, Malappuram to ready it for the companies to move in.

“We are targeting Rs 1,000-crore investment; discussions are on with other major companies and educational institutions for setting up

their facilities at the park spread across 168 acres of land.

We have set 2018 as deadline year to achieve the target,” said INKEL Managing Director T Balakrishnan. “We have so far invested Rs 20 crore for developing infrastructure facilities and an additional Rs 50 crore will be made for allied infrastructure and support facilities,” he added.

The 2007-established PPP initiative INKEL has been developing Inkel Greens with an industrial zone called ‘SME Park’ and an educa-

tional zone called ‘Edu City’.

While 17 companies have already lined up an investment of Rs 80 crore in the SME Park, six major educational groups have started to set up their institutions at the Edu City with an investment of 50 crore.

Eastern Treads declares maiden dividend

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astern Treads Limited (ETL), a member of the Eastern group and market leader in tyre retreading materials, has made a profit before tax of Rs 2.41 crore for the financial year 2014-15. ETL Chairman Navas Meeran said the board of directors has recommended its maiden dividend of 5 per cent to its investors for the FY 14-15. “We are happy to announce the company’s first dividend this year; this will be the beginning,” he said.

The company, based in Oonukkal, Kerala, will start techno-advanced retreading units across India as its process evaluation and training centers to support the domestic

Navas Meeran market and domestic retreaders. “We are active in the markets of African Sub-continent, South America, Bangladesh, Bhutan, Nepal, and Middle East. We’ll soon establish our own overseas retreading facility soon,” Rajesh S (Vice

President,Operations & CFO) said.

The retreading facility, according to him, would be up and running by December 2015.

ETL aims to cater to the major road transport corporations (RTC) in the country, Rajesh said. “We’re already catering to the needs of KSRTC, MSRTC, TNSTC and RSRTC. This will further consolidate our position as a major player in the domestic market,” he said.

ETL is also upping its stake in the industry by setting up a Retread Training Institute to train its own workforce and of all its business associates.

May 31 - June 30, 2015

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34

WE Mission Kerala: KSIDC initiative to support women entrepreneurs

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SIDC’s WE Mission Kerala initiative was launched offering encouragement and support for the State’s women entrepreneurs.

Minister for Industries & IT P K Kunhalikutty launched the initiative

in Malappuram. The Minister asserted that advancement of women entrepreneurs and industrialists will lead to the accelerated overall progress of the nation. According to him, the Government. will give

priority to green initiatives and startups by women.

WE Mission aims to identify, promote and provide support for prospective women entrepreneurs from concept to commissioning of their business venture.

Additionally it is also envisaged to provide mentoring support to women entrepreneurs through regular trainings and site visits to established entrepreneurial units in the State. In this context, a five pronged strategy as below, has been envisaged towards taking forward the Women Entrepreneurship Mission namely Meet your Mentor: for continuous Mentoring Support, See to feel: Regular Exposure Visits to Successful Units, Source the Fund: Easier finanP K Kunhalikutty (Minister for Industries & IT) launching KSIDC cial support, Launch WE MISSION in the presence of B Jyothikumar (ED, KSIDC), Dr Beena IAS the venture: Incubation (MD, KSIDC), Ubaidulla (MLA, Malappuram) & Valsalakumari

Bajaj Auto launches new sport series Pulsar in Kochi

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ajaj Auto unveiled the Pulsar Adventure Sport series with Pulsar AS 200 and Pulsar AS150 together with the fully faired Pulsar RS 200. This new range offers a world class styling and performance which is unmatched by any other competitive product offering.

“The new age Pulsars are showcase of the R&D prowess of the company. We have constantly innovated to ensure that the Pulsars stayed well ahead on performance, technology, styling and class leading features. The development of range of such differentiated superlative products within a short span of time is a rare phenomenon in this industry,” said Aswin Jaikant, General Manager South, Bajaj Auto Ltd. He further added, “Today Pulsar range sells more than 55,000 units every month in the domestic sports motorcycle market with a leadership market share of 43% making it India’s no.1 Sports bike for 14 years in a row. We are confident that this new offerings will enable us to take that share closer to 50%.”

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The Pulsar Adventure Sport comes with a distinct style combining a muscular fairing and extended visor, both of which help it tackle long distance riding and wind resistance with aplomb. It is mounted on a perimeter frame with a monoshock absorber to provide rock solid stability and control at high speeds.

Both Adventure Sports bikes come with projector headlamps which is another first in the segment.

The Pulsar AS 200 comes with a 199.5 cc Triple Spark, 4-Valve Liquid Cooled DTSi engine, while the Pulsar AS 150 will run on a 149.5 cc Twin Spark, 4-Valve Air Cooled DTSi engine. The AS200 and AS150 belt out 23.5 and 17 PS of power respectively which makes them more powerful than any other competition bike in their category.

The Pulsar AS 200 is priced at Rs 93,752 and the Pulsar AS 150 at Rs 80,977ex-showroom Kerala. They are available in three colours – Red, Black and Blue.

May 31 - June 30, 2015

& infrastructure support, Market connect: Networking support.

KSIDC in its efforts to build a proenterprise ecosystem in Kerala had initiated various activities such as Young Entrepreneurship Summit (YES), KSIDC Business Incubation Centers, The Startup-Boot Camp, KSIDC Seed Funding Support, etc. WE Mission Kerala is the latest such initiative from KSIDC in continuation of the enterprisefriendly policy. KSIDC has also formulated attractive funding package for women entrepreneurs. P Ubaidulla, Malappuram MLA, Dr M Beena IAS, MD KSIDC; B Jyothikumar and Valsalakumari were also present at the WE Mission launch event.

Further to the launch of the event, an interactive session with representatives from Industry bodies and industrial houses were also arranged. In addition, an exposure visit was organized to a successful industrial unit owned and operated by a woman entrepreneur (Sumix Kidwear (P) Ltd, Malappuram).

Geojit declares 175% dividend

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eojit BNP Paribas Financial Services has announced its audited financial results for the quarter ended March 31, 2015 and for the fiscal year 2014-15, following the meeting of its Board of Directors in Kochi. The Board has proposed a dividend of Rs 1.75 per share (175%) on the paid-up value of Re 1 per share for 2014-15. For the quarter under review, the highlights are:

crore in 2014 - 15.

Consolidated Revenues of the company increased by 40% to Rs 82 crore from Rs 59 crore for the same quarter of the previous fiscal.

Consolidated Profit Before Tax has increased by 58% to Rs 26.5 crore from Rs 16.75 crore compared to the corresponding quarter last year.

of its subsidiary to National Spot Exchange Limited (NSEL) payment crisis. A net provision of Rs 128.26 crore was made in 2013-14.

The Consolidated Revenues of the company has gone up by 40% from Rs 233 crore in 2013-14 to Rs 326

Consolidated Profit Before Tax has gone up by 82% from Rs 66 crore in 2013-14 to Rs 120 crore in 2014 - 15.

Consolidated Net Profit for the fiscal is Rs 77 crore as against a loss of Rs 73 crore in 2013-14. The company had reported a net loss for the year 2013-14 due to the provision against the exposure of one

Speaking about the results, Geojit BNP Paribas MD C J George said, “Improved sentiments and higher volumes in the capital market have helped the company perform much better than last year.”

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Nadella No 1, Nooyi No 19 in top paid US CEOs’ list

Microsoft CEO Satya Nadella With a pay package of $84.3 million (Rs 525 crore) a year, technology firm Microsoft’s Indian-origin

chief Satya Nadella has emerged the top-paid CEO in the US, as per a new list. The Equilar 100 CEO Pay Study, an analysis of CEO salaries at the 100 largest listed US companies as measured by revenue, was last year topped by Oracle’s Larry Ellison, who has been now

PepsiCo CEO Indra Nooyi pushed by Nadella to the second position Another Indian-origin CEO, Indra Nooyi of PepsiCo, is ranked 19th with $19.08 million.

Legendary investor Warren Buffett of Berkshire Hathaway is ranked last at 100th position with a total compensation of $464,011 million.

Ellison ($67.3 million) is followed

Larry Ellison

Warren Buffett David Cote (Honeywell International) and Kenneth Chenault (American Express).

by Steven Mollenkopf of Qualcomm at the third place on the list with $60.7 million.

Others in the top-ten include Robert Iger (Walt Disney), Larry Merlo (CVS Health), K Rupert Murdoch

(Twenty-First Century Fox), W James McNerney, Jr (Boeing), James Gorman (Morgan Stanley),

Equilar said the median pay for 100 CEOs was $14.3 million, a rise of 5 per cent, in the past year, while base salaries ranged from $7.1 million for Rupert Murdoch at 21st Century Fox to nil for Richard Fairbank at Capital One

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May 31 - June 30, 2015

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