Wednesday, December 31, 2008

Several cops involved in engineer's murder, admits UP police

The Uttar Pradesh police has finally admitted that some policemen were involved in the murder of PWD engineer Manoj Kumar Gupta in Auraiya.

"Some of the local cops were involved in the murder conspiracy and investigations have also revealed direct involvement of a few in the killing," said State Additional Director General of Police (Law and Order) Brij Lal.

Gupta was lynched to death, allegedly by local ruling Bahujan Samaj Party legislator Shekhar Tiwari and his associates, who broke into the engineer's house and tortured him to death.

Tiwari's official gunners, provided to him by the state for his personal security, remained party to the entire criminal act, according to the police.

"We have reason to believe that the two police gunners provided to the MLA for personal security too were involved in the attack on Gupta's residence. While they were put under arrest on Tuesday, they would now be booked not only for criminal conspiracy but also for their direct role in the killing," Brij Lal told reporters.

"Auraiya police inspector Hoshiar Singh, who has already been placed under suspension, is likely to be arrested and booked for his passive role in the criminal conspiracy," said Lal.

"We will award the severest punishment to these men in uniform so that it acts as a deterrent for other shady policemen who indulge in criminal acts or act as abettors of crime," he added.

Singh was reportedly posted at Auraiya at Tiwari's behest, who was then a member of the Samjwadi Party.

Tiwari had dumped Gupta's body in front of the local police station. Police officials had dilly-dallied for two hours before taking Gupta's body to the district hospital, where he was declared 'brought dead'.

Senior, mid-level staff eye options outside Satyam

NEW DELHI: The shakeout in Satyam isn’t restricted to its board alone. A significant percentage of the Hyderabad-based IT major’s senior brass is

also on the lookout for new job opportunities.

Headhunters told ET that several employees from Satyam have approached them to explore options in other IT firms. These include heads of verticals — who are part of the company’s senior management team — and mid-level managers.

“We have received a number of calls in the last few days and resumes have not stopped floating in since the Maytas buyout was called off by Satyam. We have already received more than 100 such CVs so far,” said Head Hunters India CEO Kris Lakshmikanth.

“One cannot rule out the possibility that the top management in Satyam is unhappy over how the entire controversial takeover was handled, or mis-handled, which is posing a lot of problems in dealing with clients right now. If matters get worse and there is any major change in leadership, as many as 2-5% of its employees will soon be looking out for jobs,” said a Mumbai-based headhunter, who did not wish to be named.

A senior company executive with a customer-facing role recently confessed to the headhunter that he was facing difficulty dealing with clients and convincing them to renew their contracts with Satyam. The clients are in re-evaluation mood as they are ‘no longer satisfied with the intent and focus of the company’.

When asked if other IT companies would be willing to employ Satyam brass in the current market scenario, he said, “Those who are performers and have the right talent will get good opportunities. Those who specialise in certain verticals will get preference.”

However, he added that finding a job would not be easy for everyone. “It will take a few months before one actually sees employee movement from Satyam to other companies.”

Real estate: No more an attractive investment

Rags to riches’ and ‘to rags again’ — this is the current state of the real estate industry. From a high of 13848 on January 8, to a low of 1403 o
n December 2, the BSE realty index has fluctuated wildly this year and is still trading near its lows. A movement of almost 90% in one year is unprecedented.

In early ’08, land was the most coveted asset for individuals and corporates, be it textile companies, cement makers or commercial banks (which began to revalue themselves based on their land assets). Sky-rocketing property prices offered an easy route to rake in the moolah via capital appreciation or stocks of realty companies. But not anymore. Earnings capability will now come into play, rather than valuation of one’s land bank.

Companies with low borrowings do not have to bother about rising interest costs and can focus on completing projects. Developers whose business models are skewed towards mid-market or affordable housing will be better placed than those in the luxury segment. Hence, the business models of HDIL, DLF and Puravankara can work well for them.

The land-buying spree was so rampant that most builders ignored liquidity constraints. The industry’s borrowings have now shot up to a few thousand crores from a few hundred crores earlier. With sales drying up, highly leveraged companies are facing the pressure.

Cash flows are constrained, thus affecting working capital cycles. This may lead to consolidation in the industry but bigger players will be able to survive the mayhem. Amidst this chaos, one cannot ignore the mass wealth creation for promoters and investors. The primary market, which was an easy route to build equity wealth, has also helped to organise the sector. The real estate industry has matured greatly and become more transparent.

At its peak in January, DLF emerged as the fourth most valuable company and its promoter KP Singh became the world’s richest realty tycoon. The realty sector’s share in the Sensex grew to almost 4% then. But after the market crash, the sector’s outlook has undergone a 360-degree shift.

Investors have shed 50-60 % of their investments in realty stocks. Investors’ perception has been dealt a severe blow. Measures like interest rate cuts for low-value homes and correction in property prices don’t seem to be working. But a further 200-250 bps rate cut and a 20-25% price cut can spur demand. And people may once again start buying houses to live in them, rather than for investment purposes.

Neuromarketing: How the brain decides what to buy

As a marketer, are you ready for neuromarketing, the holy grail where science meets marketing to reveal the workings of the human mind, the ultima

te no-bullshit zone? For a moment, keep your prejudices and ‘learnings’ from your storied institutions in abeyance, and just fathom this.

Warnings, even gory pictorial ones, on cigarette packs actually encourages smokers to light up. Product placements in films hardly works. Fragrance and sound are more potent marketing tools than brand logos. Increasingly, rituals and religion is playing an important role in consumers’ buying behavior. Sorry to disappoint you ad folks, but sex in advertising doesn’t really work, says Martin Lindstrom in his seminal new book, buy.ology, How Everything We Believe About Why We Buy is Wrong.

It isn’t that big, street-smart global marketers haven’t known what works with their consumers. Only that in most cases their assumptions on why and how it works are wrong. For long marketers have broadly relied on just two tools to judge the efficacy of their marketing efforts—tracking sales and traditional market research of asking questions to consumers or observing them.

Nothing wrong with it, only that we know that consumers often don’t mean what they say, and sales audits merely reveals the market share dynamics, and “validates your victories and losses without really explaining why they’re happening,” as Paco Underhill, the celebrated retail anthropologist and author of Why We Buy: The Science of Shopping puts it in the foreword of buy.ology.

It took Lindstorm help of two thousand volunteers, two hundred researchers, ten professors and doctors, and the most sophisticated brain-scanning machines in the world—the functional Magnetic Resonance Imaging (fMRI) and the advanced version of the electroencephalograph which tracks rapid brain waves in real time—to conduct the most exhaustive neuromarketing experiment in history to uncover how our unconscious minds control our behaviour. buy.ology is the repository and the end of this “three-year-long, multimillion-dollar journey into the worlds of consumers, brands and science,” as Lindstrom, who describes himself as a global branding expert, puts it.

So why does warnings on cigarette packs fail to deter smokers? “Cigarette warnings—whether they informed smokers they were at risk of contracting emphysema, heart disease, or a host of other chronic conditions—had in fact stimulated an area of the smokers’ brain called the nucleus accumbens, otherwise known as “the craving spot”.

The statutory skull-and-bones warnings that the tobacco marketers grudgingly accepted in the West had infact become a “killer marketing tool” for the industry! Union Health Minister Anbumani Ramadoss, who has justifiably been at the forefront of anti-smoking movement in India, of late, has reason to pick up issue with Lindstrorm here!

There is no sure-fire way to sponsorship success, but knowing the rules of engagement may help here. Despite spending similar ad monies on Americ

an Idol, Coca-Cola and Ford walked out with very different results. Coke’s integral play in the programme’s storyline, vis-à-vis Ford’s traditional spot ads during commercial time, meant not just a better memory score for the brand, but critically for Ford, “watching a Coke-saturated show actually suppressed subjects’ memories of Ford ads.”

It seems fashion trends and fads go much deeper than simple desires. The concept of imitation—whether it is copying other consumers, brand ambassadors, even mannequins—is hardwired into our biology, and for good reasons.

Neuroscience points to the mimicking region of our brains—mirror neurons—that works in tandem with dopamine, one of brain’s pleasure chemicals. “Because consciously or not, we calculate purchases based on how they might bring us social status—and status is linked with reproductive success.” So whether it is cool gadgets like iPhones or luxury purchases in a slinky new Prada dress, all consumption is geared to our “need to attract a mate who could possibly carry our genetic line or providing for us for life”.

Coming back to cigarettes, Lindstrom’s experiments in subliminal messaging—visual, auditory, or any other sensory messages that register just below our level of conscious perception and can be detected only by our subconscious mind—provides more fodder for the anti-smoking lobby. Pushed against the wall on advertising and promotion, cigarette marketers have fast-forwarded to the future and employed underground tactics like logo-and-name free mnemonics like he Marlboro-red Ferrari, a camel riding off into a mountainous sunset et al.

The good news, for the tobacco marketers at least, is that it seems to be working better than traditional advertising! “Logo-free images associated with cigarettes, like the Ferrari and the sunset, triggered more craving among smokers than the logos or the images of cigarette packs themselves.” Speak of law of unintended consequences.

But why does subliminal cigarette advertising work? For one, since it’s devoid of any brand name and logo, the message is not construed as an ad and hence the smokers’ guard drops. And the tobacco industry’s “efforts to link ‘innocent images’—whether of the American West, purple silk, or sports car—with smoking in our subconscious minds have paid big time”.

In fact, taking the results of the cigarette experiment as a benchmark, Lindstorm even poses an existential question—is the logo-led marketing al

ready on life support, if not already dead? If cigarette makers can create stimuli powerful enough to replace traditional advertising, what stops other marketers to follow suit? A caveat here. Even though a majority of logos may be losing their power, “certain simple yet powerful icons are increasingly taking hold, creating an instant global language, or shorthand”. Think Apple’s bitten apple, McDonald’s Golden Arches, Nike’s swoosh.

Lindstorm’s most provocative research though was an inquiry into how the brain experiences religious beliefs and brands. And is there any commonality between the two? fMRI study on over 65 volunteers revealed that brain activity pattern was almost identical (not just similar) when people viewed images of strong brands (iPod, Harley-Davidson, Ferrari) as they did when they viewed religious images (the Pope, Virgin Mary, rosary beads, Mother Teresa and the Bible).

And it wasn’t that these volunteers were agnostic, but devouts who scored themselves seven (average for the group), on one-to-ten scale (ten being highest) on spirituality. “The results of the brain-study show that most successful products are the ones that have the most in common with religion ... a sense of belonging, a clear vision, power over enemies, sensory appeal, storytelling, grandeur, evangelism, symbols, mystery and rituals”.

In a visually overstimulated media environment—where logos saturate our every waking hour—the findings of buy.ology’s sight-and-smell experiment could be a godsend for marketers. “Odor activates many of the exact same brain regions as sight of a product.”

Smart marketers are already tacking on fragrance to products, like Samsung’s flagship store in New York which “smells like honeydew mellon, a light signature fragrance intended to relax consumers and put them in South Sea-island frame of mind—maybe so they don’t flinch at prices”.

And most supermarkets in the US and Europe now have bakeries close to the entrance to enable “the fragrance of just-baked bread signal freshness and evoke powerful feelings of comfort and domesticity” with shoppers to push them to a point where they discard their shopping lists and start picking up food products they had not even planned to buy.

This multi-sensory approach to marketing is being termed ‘Sensory Branding’—the term is even trade-marked. The right pairing of sensory inputs can work wonders for marketers—they can use fragrance to make you see and sound to smack you lips, all to their brand’s advantage.

But surprisingly, sensory ubiquity—like Nokia’s signature tone—may not necessarily be an unqualified brand asset. In an image-sound brain experiment, it was discovered that volunteers displayed a “across-the-board negative emotive response to Nokia’s famous ring,” even while the images of Nokia’s phones were rated favourably. “In short, Nokia’s ring tone was killing the brand.” But just why? Peering into part of the volunteers brain circuits that processes information about emotion, Lindstorm and his research partner Dr Calvert found that the respondents’ brain “connected the familiar sound with intrusion, disruption, and feeling of annoyance... (like) a romantic dinner or tropical vacation shattered by a phone call from a boss or a movie or yoga class ruined by the ill-timed ring of an unsilenced phone.”

Is there an ethical dimension to neuromarketing, of being abused to manipulate and subjugate the mind for commercial gains or political propaganda? As the discipline’s biggest researcher, Lindstrom doesn’t shy away from the question.

“I believe it is simply a tool, like a hammer. Yes, in the wrong hands a hammer can be used to bludgeon someone over the head, but that is not its purpose, and it doesn’t mean that hammers should be banned, or seized, or embargoed. The same is true for neuromarketing ... Because the more we know about why we fall prey to the tricks and tactics of advertisers, the biter we can defend ourselves against them.”

Top 10 NRI Newsmakers of 2008

Sun, Dec 28 08:59 AM

After the enthusiastic response to the first list of NRI newsmakers for 2007, here is the updated version before 2008 ends. The selection is based on news value and the degree of interest and concern to NRIs.

1. Lord Swaraj Paul: A consistent NRI newsmaker for over three decades, he just made history by being installed Deputy Speaker in the House of Lords. He is the first Indian to sit on the woolsack, the traditional seat. He has extensive investments in India for his multi-billion pound company Caparo Group. Conferred the Peerage in 1996 and honoured with the Padma Bhushan by India in 1983, 77-year-old Lord Paul is one of the most famous Indian origin entrepreneurs in Britain.

2. Sonal Shah: Appointed to the Transition Team of US president-elect Barrack Obama, she is a member of a three-person team to coordinate technology, innovation and government reform during the transition. She earlier headed the philanthropic department of Internet giant Google; and was vice president at Goldman, Sachs and Co and developed and implemented the firm's environmental strategy. Shah, who raised funds for victims of the 2001 earthquake in Gujarat through the Vishwa Hindu Parishad-America, has denied any links to this organisation.

3. Vikram Pandit: The Citibank CEO shocked everyone with his sudden appointment to the world's biggest banking company. After a year, he is right in the eye of the global financial tsunami to save his bank and spearhead its recovery. He makes news with the US government's multi-billion dollar recovery package for his bank, job losses, restructuring and reviving an icon of the American financial sector. Facing a difficult recovery, Pandit faces one of the toughest challenges ever seen in the banking industry.

4. Karpal Singh: A Malaysian-Indian veteran lawyer and human rights activist, he fought the general election as an opposition candidate for equal treatment of all Malays for government contracts, employment and appointments. He has highlighted the woes of all underprivileged for 30 years and has been compared to Martin Luther King and Nelson Mandela.

5. Sir Salman Rushdie: His long-time bestseller 'Midnight's Children' was, following a public vote, declared the Best of the Booker in the award's 40-year history.

6. Navanethan Pillay: A South African Indian judge, he was appointed for four years as the UN Human Rights Commissioner - a significant achievement for NRIs. Her grand-parents migrated from Tamil Nadu to South Africa as sugarcane indentured labourers in the late 1800s, and she became the first woman to start law practice in South Africa's Natal Province in 1968. Pillay defended several anti-apartheid activists and successfully fought for the right of political prisoners, including Nelson Mandela.

7. Lakshmi Mittal made some news for the wrong reasons this year. The world's largest steel maker after he took over Arcelor, Mittal has had to take tough decisions on staff sackings, respond to environmental concerns and acquisitions and mergers. On the positive side, he was honoured with Padma Vibhushan by India and the third Forbes Lifetime Achievement Award for heroes of entrepreneurial capitalism and free enterprise.

8. The Great Khali, Dilip Singh Rana: One of the largest athletes in the World Wrestling Entertainment and World Heavyweight Champion, Khali calls himself after the Hindu Goddess Kali. This towering giant at seven feet three inches enjoyed a hero's welcome during his visit to India this year. He also landed up film contracts.

9. Anand Jon: He was convicted of rape after a glamorous career as the fashion designer to Hollywood stars. From Beverley Hills to prison wards, he made headlines with court proceedings when he was accused of luring young women and girls, as young as 14, to an apartment where he acted out sadistic fantasies. The powerful, strident campaign for his innocence mounted by his sister Sanjana claims that he was framed.

10. Dev Patel... Dev who? Well, he is an 18-year actor in the new Hollywood hit 'Slumdog Millionaire'. Based on a novel 'Q&A' by Indian diplomat Vikas Swarup and crafted into a film by the acclaimed director Danny Boyle with music by A.R. Rehman, this film is ready to grab some awards at the next Oscars. Patel plays Jamal, a slum child who becomes a national hero after he reaches the final question on India's TV show 'Who Wants to be a Millionaire?' Watch him! He could win the best supporting actor award.

(28.12.2008 - Kul Bhushan previously worked abroad as a newspaper editor and has travelled to over 55 countries. He lives in New Delhi and can be contacted at: kulbhushan2040@gmail.com)

Tuesday, December 30, 2008

Kerala, alcohol's own country?

The Kerala Beverages Corporation is scaling new heights every year in sale of liquor.

There are no signs of economic recession at Corporation's outlet in Thiruvananthapuram. It sold Rs 55 crores worth liquor this Christmas, which is a whopping Rs 13 crores more than last year.

But the corporation is now planning to open a de-addiction centre near one of its distilleries in central Kerala. It is also planning to open a medical college and a hospital and will spend about Rs 100 crores on the ambitious project in the next four years. That is part of the corporation's social responsibility initiative.

A recent demand study done by IIM Kozhikode suggests that IMFL sales in Kerala will cross Rs 200 lakh cases by 2009.

"We need to have certain guidelines so that supply is also restricted. Such kind of law enforcement on one side and equally important is the attitudinal change. When you couple these two, you can have some amount of positive effect," said Dr Girish, clinical psychologist.

Kerala already has the dubious distinction of highest per capita alcohol consumption in the country with 8.5 litres alcohol per person.

Salaried crorepatis double in 2 years

NEW DELHI: The number of taxpayers earning more than Rs 1 crore annually has doubled in just two years, thanks to buoyant economic growth. Corpora
te sales and profits have risen by more than 30% in the last few years. That has encouraged companies to pay record salaries to their top managers, say tax experts.

According to data compiled by income-tax department, the number of salaried taxpayers earning more than Rs 1 crore (Rs 10 million) crossed 5,000 in fiscal 2008 from 2,200 in fiscal 2006. The total number of millionaires is much higher as it includes non-salaried taxpayers.

“Individual earning, especially through bonus and incentives, has seen a stupendous rise recently, especially last year. We can only hope the trend continues in the current fiscal,” said Amitabh Singh, partner at leading audit and consultancy services company Ernst & Young.

However, after two straight years of exponential increase in the number of millionaires, the pace may slow down in 2009-10. India’s GDP grew by 7.8% in the first six months of fiscal 2008 from over 9% in the previous year, and corporate bottom lines have also seen a similar dip. That will put pressure on salaries.

“With the slowdown looming large, it is unlikely that we will add as many crorepati taxpayers in the salaried category in the coming times. Compensations, especially at the senior management levels, had seen stupendous growth largely on account of long-term stocks and performance-linked bonuses. Salaries in this category particularly are expected to remain stagnant, or worse, see a drop. Frills like stock options and performance-linked bonuses will take a beating,” said Gangapriya Chakraverti, leader at HR consulting firm Mercer Consulting India.

The data on millionaires, gathered from employee tax deducted at source (TDS), shows the number of people earning between Rs 50 lakh and Rs 1 crore per annum has also more than doubled. It has increased from 4,400 persons in fiscal 2006 to 10,500 in fiscal 2008. The number of those earning more than Rs 10 lakh also increased to 2.24 lakh in FY08 from 87,000 in FY06.

The majority of Indian millionaires earn between Rs 10 lakh and Rs 20 lakh. In 2007-08, more than 1.5 lakh employees were earning in this income bracket. That is a 250% jump over 2005-06. Given their large number, these millionaires also contributed the maximum to the TDS kitty in FY08. While TDS from those earning more than Rs 1 crore was Rs 4,415 crore, TDS from those earning between Rs 10 lakh and Rs 20 lakh was Rs 5,770 crore. The number of taxpayers earning between Rs 5 lakh and Rs 10 lakh has also doubled in the last two years.

Now, pants that absorb smell of people breaking wind!

Thu, Dec 25 12:40 PM

London, Dec 25 (ANI): Fearing that too much gorging on spicy delicacies this festive season might leave you breaking the wind in front of anybody and everybody? Well, then here's a solution for the 'stinky' problem-pants that absorb the bad wind when people fart!

Scientists at a US firm have developed strips of an activated carbon fabric, called Subtle Butt, which, when secured in underwear with self-adhesive strips, can neutralise the gas.

The firm markets a range of products to tackle embarrassing human excretions, such as underarm sweat stains.

Available at 6 pounds for five sheets, the product is flying off the shelves.

A spokeswoman revealed that initially the strips were designed to combat sweat smells.

But the firm's boss got the idea of its new use after catching a plane from Mexico.

"The passengers had drunk a lot of beer and eaten too many fajitas. The owner had the idea that the fabric could be used to prevent the smells," The Daily Express quoted her as saying.

She added: "The strips are simply attached to underwear and will filter flatulence all day. Some of our customers say they have waited their whole lives for this product." (ANI)

Monday, December 29, 2008

Satyam employees caught unawares

CHENNAI: It was bad enough when Rohit, working with Satyam in Chennai, read about Chairman B Ramalinga Raju’s move to acquire his son’s property and infrastructure companies sans shareholder’s approval.It was even worse when a week later he read about World Bank blacklisting Satyam on charges of data theft. But of late things are getting scary with rumours about Raju’s resignation and possible dilution of promoter’s stake. Surrounded by panic and uncertainty, he did the obvious: registering in a slew of online job portals.Like Rohit, thousands of employees across the globe are groping under amplified fear and are likely to relook at their long-term commitment with the company.This, in the wake of the ongoing recession in US and UK markets have made the situation worse.“We were asked not to panic and the rumours about Chairman’s resignation are baseless. All said, Satyam, as a corporate brand, is losing steam and no one with the skill set would like to be associated with it for long,” says Archana Shukla* an entrylevel employee based in Hyderabad.A BT-Mercer-TNS Best Employer Survey in 2006 ranked Satyam as the third best place to work for in India. Similarly, a study conducted by Hewitt Associates in partnership with The Wall Street Journal Asia in 2007 ranked Satyam as one of top three employers in India. “It was one of the top five Indian IT employers but I am not sure if that’s true anymore. Attracting top quality talent across the levels will be difficult in the near future,” said Manish Sabharwal, Chairman, Teamlease Services, a manpower and temping services company in Bangalore.In September 2008, it was named the Most Admired Knowledge Enterprise (MAKE) for the third year in a row by a panel of Asian Fortune Global 500 business executives. But whether it will retain the honour in 2009 remains to be seen. “The recent incidents will impact all the stakeholders including employees, whose services are vital for the company’s growth.The strategic team should gather as much confidence as it can to revive its position,” said Kaustubh Dhavse, Deputy Director- ICT Practice, Frost and Sullivan, South Asia and Middle East.Meanwhile, the company is pulling out all stops to allay fears among associates and other stakeholders. “We are doing all we can, in every possible way to restore confidence. We have gone through many ups and downs and survived them all,” said a senior Vice President, Satyam Computer Services.

Why did Sensex crash from 20K to under 10K?

Had the Sensex been at 30,000 today, we might have justified the level by quoting many facts and statistics. Some of them could have been: The
interest rates are on their way down and back to the levels of two years ago. Inflation is down to nearly 6.5%. The rupee is at an all time low of 50 against the dollar. The crude prices are below $50 a barrel.

With the new pay commission for the central government employees and significant pay hike just announced for the PSUs, the urban purchasing power should be strengthening. The year has had its standard quota of monsoon. The last quarter ended fairly well, at 7.5% growth. Nearing elections, the government has been bending backward, easing up on an array of policies. The government has already announced its continuing commitment to invest heavily in infrastructure.

Real estate prices are down to more realistic levels and home loans are headed southwards as well. The worst hit suffered by an Indian bank by the subprime crisis is the ICICI Bank, according to which the hit is a mere $32 million that has been accounted for by the bank. Our foreign exchange reserves remain a healthy $260 odd billion. The Mumbai terror attack has unified the country like never before. Mumbai is on the move again.

But Sensex is not at 30,000. It is closer to 10,000. Not counting the Mumbai terror attacks, which were a later phenomenon, our gloom about the financial crisis is all about the Sensex plummeting below 10,000. So our financial crisis is really a crisis of Sensex rather than any real effect of the subprime related crisis.

Why did Sensex crash from 20,000 to under 10,000 within a year? Not because our economic fundamentals have crashed overnight. Why did Sensex climb from 10,000 to 20,000 earlier in the first place (a question rarely asked)? Not because our economy had performed some unheard of miracle. The Sensex soared because some foreign institutions, with their home markets hardly offering any investment opportunities invested heavily in our market. And it plummeted when they took a big hit back home, needed their money real bad and fast and pulled back their investments. Soon they will have no option but to bring the investment back to our doorstep.

It is strange that when prices fall in general, we are all happy because goods are now better value. But when stock prices fall, we shed copious tears. Exactly the same stocks with exactly the same economic fundamentals were great buys with Sensex at 20,000; but they are bad investments today with Sensex at some 10000 odd!

I think ours is a crisis of confidence, and an imagined one at that. Consider this. Last month, a young graduate I know received an offer through a large recruiting process, as an executive in one of the leading software companies of the country.

They gave him 48 hours to join with a set of documentation an inch thick, including an “agreement” that he will serve for a minimum of two years backed by a surety of Rs 1,25,000. As this had to be provided by me and I was travelling, I asked him to seek three days time, which he did. During the week when all this was happening , the story of Lehman Brothers folding up and other related stories from the west hit the news-stands.

On the third day, with all documentation complete, when the lad appeared before the company to join, all the offers had been put on hold and then effectively withdrawn , on account of “the financial crisis” ! Now what kind of national company would do that, except as a knee-jerk reaction? Incidentally, this is not the only company to do so.

Only last year, as the rupee was under 40 to the dollar, our IT companies were crying hoarse for the government to weaken the rupee. And today, when the rupee is down 25% from a year ago, we only get to hear about loss of contracts. Assuming that there are cancellations in some contracts for these IT companies, doesn’t the rupee devaluation of the tune of 25% in less than a year even partially offset that fact?

Doesn’t the slowdown also open up a greater case for some more outsourcing for greater competitiveness in the US and Europe? This is not to say that some individual sectors have not been hit severely by the slowdown in the western economies. But they hardly account for the entire economy. Besides, isn’t the Indian market big enough? If steel, cement and hotel prices are down today, did they not see a phenomenal rise in tariffs the last few years?

Today, our only cause for concern should be the issue of dealing with Pakistan. Whatever the attributed reasons for systemic failure leading to the attacks, the issue is being dealt with some degree of maturity by the government. So let us be more upbeat.
Our financial crisis is only in our minds. So let us not over-react irrationally. Look at the brighter side of the crisis — namely some of the best jokes that are coming our way. My own favourite is: “This is worse than a divorce. I lost half my money and still have my wife.”

(The author is CEO, GMR Varalakshmi Foundation)

India targets $58 billion software export this fiscal

The ninth edition of the largest IT global networking event in India, INDIASOFT 2009, to be held in Kolkata, is targeting the new emerging markets of South Africa, Spain, France and Germany for software exports and services.

Last fiscal, the country exported software worth $45 billion and the target this fiscal is around $58 billion. Out of this, $3.6 billion has been earmarked for electronics hardware and $55 billion for software and services.

"The software market in South Africa is estimated to be around $12 billion and we want to tap this potential market. At present, we export 0.7% of it only and want to increase it," said DK Sareen, executive director of Electronics and Computer Software Export Promotion Council (ESC).

INDIASOFT 2009 will have around 120 buyers from these focus regions and also from Latin America, he said. The event will be held in Kolkata on February 26 and 27, 2009.

Around 80 domestic exhibitors will participate in the event. When asked about the last fiscal figures of the IT industry, Sareen said the industry did a business of $25 billion from April to September, involving $2 billion in the electronics hardware and $23.65 billion in software services segment.

"We have already achieved 45% of the total target of $58 billion in the first six months and let us see how we fare in the coming months," Sareen said. The first six months recorded a growth rate of 30%.

West Bengal IT minister Debesh Das, who was present in the curtain raiser of the event, made it clear that INDIASOFT 2009 is a big opportunity for the city's small and medium scale enterprises in the IT sector. "IT SMEs in the city are surpassing the SMEs of Hyderabad, Pune and Chennai in quality," Das told reporters.

Now, a machine that will make wine hangovers history

Fri, Dec 26 12:25 PM

London, Dec 26 (ANI): Even the most cautious wine drinkers wake up with what one can call post-Christmas hangovers. But a new invention by a South African company provides a magical cure to the headache, nausea and shaking associated with excessive drinking.

What's more, the technology improves the taste of the drink in the process.

Headaches after drinking wine are usually caused by sulphites - sulphur dioxide added to the bottle to kill off unwanted microbes and yeasts and limit oxidation.

Now, a new machine by L'Ormarins, near Stellenbosch in the Western Cape wineland, work towards reducing greatly the volume of sulphites by using ultraviolet rays to do the job.

Called Surepure, the technology is being tested by a many South African wine estates including Steenberg, Alluvia Stellar Organics, Clarius, Bouchard Finlayson and L'Ormarins, as well as winemakers in California, Chile, New Zealand and Australia.

According to Neil Patterson, cellar master at L'Ormarins, a wine that is almost free of sulphites cannot come too soon.

Patterson has a sulphur intolerance, causing blotchiness around his eyes, and was looking for a solution before hearing about Surepure.

"I'm lucky that I work for someone who is keen to embrace new technology. The use of sulphites in wine is a problem. It does control microbacterial activity and prevents oxidation but it also kills nonharmful elements which can add to the taste and flavour of a wine," Times Online quoted Patterson, 28, as saying.

Guy Kebble, CEO of Surepure, said: "We think this will change the way wine is made. It is a conservative industry but people's attitudes to sulphites and demands for a healthier diet and lifestyle are making winemakers look at alternatives."

Roughly the size of two fridge-freezers, the new machine, has wine piped in and out through two pipes, while the passing liquid is exposed to UV-ray lamps.

This way, Surepure can process 4,000 litres in an hour and the process can be repeated as many times as the winemaker wants.

"Using this technology we can cut down the need for sulphites and improve the quality of our wine," said Patterson. (ANI)

BSP MLA an extortionist, alleges engineer

There's mounting evidence against BSP MLA Shekhar Tiwari arrested for the murder of a PWD engineer in UP.

The engineer's predecessor in the public works department C D Rai says Shekhar Tiwari would regularly extort money for party funds along with his supporters.

Tiwari has been charged the National Security Act and the Gangster Act for the murder of engineer Manoj Gupta but his boss Mayawati denied that it was because of party pressure to raise funds.

Shekhar Tiwari and his supporters were booked for murder after a Public Works engineer Manoj Gupta was beaten to death. The engineer had reportedly refused to pay a donation for chief minister Mayawati's birthday.

"They were banging the door, and when I asked them who they were they said they were from the CID. I woke my husband and when he asked who they were, they said they were from the CID. When he asked them why they had come, they broke open the door and came inside. My husband locked me up in the bathroom, and they took my husband away," said Shashi Gupta, wife of Manoj Gupta.

Sunday, December 28, 2008

KPIT staff sent on compulsory leave without pay

PUNE: The cheer traditionally associated with the festive season at this time of the year is missing in many IT companies. Local companies are
feeling the heat of the economic slowdown in the West where companies and their employees are taking longer-thanusual holidays.


Technology solutions provider KPIT Cummins Infosystems is one of these. It has sent some employees on compulsory leave and is weighing a salary cut for all employees next year. Sending employees on leave without pay is an effort to reduce operational costs. While a company spokesperson said there was no compulsion in sending employees on leave, some employees told ET: “We have been told to go on a fortnight’s leave without pay,” thus indicating the compulsion behind the leave.

These employees added that they have been told the ‘bench’, which is a group of employees reserved for emergency work, would be reduced next year because revenues from clients has fallen.

The company spokesperson said, “We are restructuring the business because of the global recession. We are working out how to reduce operational costs in order to sustain the business if conditions worsen in the next few months. The only step we have taken regarding employees is warning them of the possibility of a reduction in the variable pay, although a decision on this has not yet been taken. There are no plans to reduce the number of employees.”

The Pune-based KPIT had a market cap of Rs 210.20 crore as on December 24. Among its investors are the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which invested $2.5 million in 2006. This was preceded by an investment of $8 million for an 8% stake by LB 1 Group Inc, an affiliate of the now defunct investment banker Lehman Brothers.

This preferential allotment had brought down promoter share holding to 42%. The IFC investment was in addition to its prior commitment of $11 million long term debt to KPIT Cummins. Cargil Ventures and Cummins Inc are the other strategic investors in the software company.

KPIT Cummins’ moves now follow a 2% across the-board salary cut by Persistent Systems, a Pune-based outsourced software product developer.

IT job losses in India can top 50000 in '09

Over 50,000 IT professionals in the country may lose their jobs over the next six months as the situation in the sector is expected to worsen due to the impact of global economic meltdown on the export-driven industry, a forecast by a union of IT Enabled Services warned.

"There would be 50,000 job losses (IT and BPO put together) over the next six months," Karthik Shekhar, general secretary of UNITES India, a politically neutral union of ITES professionals said.

The job loss in the IT and BPO sector in the country topped 10,000 in the September-December period, Shekar said.

While employees of medium-sized companies bore the brunt of job losses in the September-December period, it's going to be their counterparts in the big and small firms who would increasingly face the axe in the coming six months, he said.

UNITES India, affiliated to the global union United Network International, suggested that the companies in trouble could resort to salary and incentive cuts without trying to "squeeze" the staff, rather than adopting the "layoff path".

Employees are willing to take such cuts for 12-16 months till the demand picks up again, when such benefits should be restored to them.

Shekhar said senior officials of the industry had concurred with the figure of 10,000 job loses in September-December, stating that it accounted for "bottom five per cent of the performers".

Consultations with the union's counterparts in the US and UK suggested that slowdown would continue to hit the offshore sourcing space, he said.

He said factors like continued slowdown, likely "tax application" to companies outsourcing jobs under the new US regime and tightening in regard to H1B visas were among the key reasons cited for the acceleration in issue of pink slips.

Santa guns down three in LA, hunted

Los Angeles: At least three people were found dead after a man dressed as Santa Claus started shooting at a Christmas Eve party in suburban Los Angeles, police said Thursday.

An 8-year-old girl and a woman in her 20s were hospitalised with gunshot wounds that authorities do not consider life-threatening.

Crews took a third person to a hospital with an injury that wasn't life-threatening and wasn't caused by gunfire, said police in Covina, a city about 20 miles east of downtown Los Angeles.

The shooting started around 2330 hrs (local time) on Wednesday.

When police arrived at the two-story house, they discovered a fire that caused "significant damage." Authorities found three people dead inside but said they do not know how the three died. Their identities had not been released Thursday morning.

"There was some source of ignition that caused the fire," Covina police Lt. Pat Buchanan said at a news conference Thursday morning. "We've not been able to identify it yet."

Covina police identified "a person of interest" in the assault as Bruce Jeffery Pardo, 45. Pardo was described 6 feet 3 inches and 250 pounds with brown hair and blue eyes.

Authorities said Pardo's name was given to them by people who were at the party.

Buchanan said Pardo was "going through some type of marital problems."

Police believe the residence where the shootings occurred belongs to one of Pardo's relatives, Buchanan said.

According to police, the gunman arrived at the party wearing a Santa Claus outfit but changed into regular street clothes before leaving. The gunman is considered armed and dangerous, Buchanan said.

Friday, December 26, 2008

The lack of female Einsteins is all down to numbers

Why are there so few female Einsteins? Many people share a belief that while women can do science, there are far fewer women than men at the very top of the science hierarchy because women just aren't as innately good at science as men. Others feel this view is wrong but cannot easily put their finger on why.

They should be able to now. There are few women at the top of science because there are so few women in science. It's simple statistics.

The absence of women at the top in scientific endeavour is real. There is not one woman in New Scientist's list of scientific heroes for 2008, for example. And in chess, which is arguably as intellectually rigorous, there has never been a female champion, and fewer than 1% of grandmasters are women.

But chess has something science doesn't: a clear ranking system based on performance in competitions from school age up. Using the records of the German chess federation, Merim Bilalic of the University of Oxford and colleagues found that statistics can explain the absence of women at the top. "More extreme values are found in larger populations," she says.

Those rare exceptions

Individuals at the top are, by definition, rare. In two groups with the same average performance and variability, the larger group is simply more likely to have more of these rare individuals, just because it is larger. The greater the difference in group size, the greater the chance the bigger group will have more exceptional individuals.

To test this idea, Bilalic's team checked the records of the German chess federation – in which males outnumbered females 16 to one. They found that the statistical effect of this difference in numbers accounted for 96% of the observed difference in performance between the sexes. "There is little left for biological differences to explain," says Bilalic.

While statistics may explains the absence of females at the top, they don't explain why there are fewer females in the first place. If this is due to any innate differences in chess ability between the sexes it would have to influence whether children start to play the game at all, because the dropout rates for girls and boys once they do start are similar.

Many other factors might keep girls from ever getting into chess, such as cultural expectations, the difficulty of breaking into an activity dominated by boys, or just having been told they're less good at it. "But you can no longer cite the greater number of men among the most successful people as evidence of innate differences until the effects of participation rates have been allowed for," says Bilalic.

In short, it's hardly surprising that there are so few women Einsteins when there are so few male ones – and so many more men are trying.

Journal reference: Proceedings of the Royal Society, DOI:10.1098/rspb.2008.1576

Thursday, December 25, 2008

Meltdown aftermath: No takers for GRE?

In the last seven years, the most foreign students in the US were from India. That was a record 94,563 in 2008. But economic recession, bleak job prospects in the US and increase value of dollar against the rupee seems set to bring that down by more than 20 per cent.

Those taking the mandatory Graduate Record Exam (GRE) this year is down 22 per cent and in colleges that train students for GRE, the dip is more than 50 per cent.

Archana Kamalakar, MSc Microbiology Gold Medalist 2007 from Osmania University, took the exam last year hoping to pursue a doctorate degree in the US. Now she has changed her plans.

"Primarily because of the recession and there is a job crunch. So there was a lot of apprehension from my parents point of view whether I will be able to survive there in terms of paying my rent for the house, food all the expenses," she says.

A student on an average spends 60,000 to one lakh rupees to take the GRE and complete formalities for admission to a US university. College fees add up to anywhere between 17 and 21 lakh rupees.

Jaideep Chowdhary, National Programming Head GRE, says: "US education has become much more expensive because last year the dollar was around 40-42 rupees. Now it has gone up to 49-50 rupees. So in the immediate term the impact on the economic condition of the family also plays a role.''

According to a recent report of the Educational Testing Service in the US, the number taking the GRE in India has dropped from 74,000 to less than 58000. Some say it is not because the US has become any less attractive as a study destination.

Anoop Kumar of Visu Consultants says: "There has been a career shift among engineering and science students. Many are going for MBA and hence people are taking GMAT than GRE.''

Interestingly, in the last 7 years, India was topping the number of foreign students admitted in US universities.

Now it seems the grass is looking greener on this side as many now feel that India presents loads of opportunity in a more secure social and economic environment.

Satyam shares pull back on takeover talk

MUMBAI: Satyam Computer shares plunged as much as 18.3 per cent to a five-year low of Rs 114.65 after it was barred from business with the World Bank for eight years, dealing another setback for the No 4 Indian outsourcer following a botched move into the construction industry. However by close, the stock, which had fallen 13.6 per cent on Tuesday, clawed back to limit losses to 3.9 per cent at Rs 134.95 as some investors termed the loss “excessive” after the stock fell nearly 50 per cent in just six trading sessions.

Speculation was also rife that the company could soon come under a takeover move as the stock valuation is now considered very cheap. “The promoter stake is low at around 8-9 per cent. It’s easy for any acquirer with deep pockets to mount a takeover of the IT company. Given its weak reputation, I don’t think other shareholders will object,” said BSE dealer Pawan Dharnidharka.

Mutual funds, insurance companies and FIIs together hold around 61.5 per cent stake in the company. As per the current Sebi guidelines, an acquirer will have to purchase 15 per cent before making an open offer for 20 per cent from shareholders. Who would be interested in Satyam? “It can be a foreign company also,” said a dealer.

Satyam has fallen 41 per cent in the last one week while Maytas Infra has crashed over 60 per cent to Rs 181.25 in a week. Market capitalisation of Satyam has fallen Rs 6,000 crore and Maytas Infra by Rs 1,800 crore, leading to a total loss of Rs 7,800 crore for their shareholders.

There was no Christmas cheer on Dalal Street on Wednesday. Stocks skidded for a third day, falling 1.2 per cent on Wednesday to their lowest close in more than two weeks, as investors braced for poor quarterly earnings due next month. The main 30-share BSE Sensex shed 118.03 points to 9,568.72, its lowest close since December 8. The market, which is closed on Thursday for Christmas, has lost 5.3 per cent this week after rising 4.2 per cent last week.

Understanding the psyche of acid attackers

Srinivas, an engineering college dropout in Warangal town of Andhra Pradesh, attacked a girl who spurned his love, with acid. The reason -- he could not take no for an answer. Some undergraduate college students also helped him in the act.

Hours before being killed, the accused said they had plotted the attack for one month. Srinivas said he practiced throwing water on a doll 17 times over 10 days to get an accurate throw and cause maximum harm.

Srinivas's father disowned him and even refused to take his son's body for last rites.

"Whenever someone seems abnormal, parents also have to take some responsibility, monitoring the person's actions and may be getting psychiatric help. Otherwise this will not stop," said a local.

Parents of Swapnika who suffered 55 per cent burns said they empathised with the parents of the accused but say there is a lesson there for other parents.

"Parents have to take at least 50 per cent responsibility. The parents need to monitor what the child is upto. When he does something wrong, you should not continue supporting him. The child needs to know that he is doing wrong," said Sreelatha, mother of the acid attack victim.

But, could parental and societal monitoring of the activities of youth to stop them from taking a road to nowhere minimise acts of violence? And are there any warning signals that one can get from the personality profile of such youth?

"They are selfish, very demanding and self-centred. They want all wishes fulfilled immediately. They want immediate gratification, low frustration-tolerance, so they resort to these acts. When their wishes are not fulfilled, they have extreme anger and hatred. They would like to ruin somebody else's life. We hear of people sending bad SMS, letters to defame, they show anti-social traits," said Dr Gowri Devi, Superintendent at the Institute of Mental Health.

Behaviour patterns and habits get set over time; the earlier the intervention, the better.

"It becomes a habit and behaviour pattern. When I demand, I cry, scream and threaten for it. As a result, I get it. When parents identify such violent behaviour, breaking articles, sulking when wishes are not fulfilled, they have to be taken to psychologist. Go for behaviour modification. Limit-setting of behaviour. How much parent should accept? How child should develop frustration-tolerance. But this is not being screened, identified or accepted. Only when behaviour becomes very destructive, attacking parents, other children, by that time it is generally too late," Dr Gowri said.

Wednesday, December 24, 2008

Wipro buys Citi Technology Services for $127 mn

In a move that can well send out a signal to the industry about the state of the affairs in the captive delivery centres of global banking giants in India, Wipro Technologies, the flagship business of consumer care to IT major Wipro, has announced to acquire Citi Technology Services, the captive delivery centre of IT services and solutions centre of Citigroup in India, for a consideration of $127 million (around Rs 609 crore) in an all cash deal.

This is Citigroup's second India-based asset which is being sold out to one of its service provider, after the company recently sold its captive BPO arm Citigroup Global Services to TCS for about $505 million.

While acquiring Citi Technology Services along with 1,650 odd employees working across its four delivery centres in Mumbai and Chennai, Wipro has managed to get a revenue commitment of about $500 million over the next six years, what Citi's Global Technology Head Jagdish Rao termed as 'minimum commitment' to the buyer.

Citi Technology Services which started its operations in India in 2004, has reported a revenue of $53 million in the calendar 2007, and the company is expecting to corner a revenue of $80 million in the ongoing calendar.

"It is just the starting point. We feel there will be greater demand for their services as we go forward. This ($500 million of committed revenue) is what the minimum commitment we are making at this point of time," Rao told media persons on Tuesday.

Citigroup has been working with Wipro for technology services during the last four years. The present commitment along with a BPO service contract what Citi has awarded to Wipro in the ongoing quarter, will make Wipro the 'top service provider for the company from anywhere in the world', he added.

Wipro's BFSI practice which was one of the largest revenue earning vertical for the company with contribution of about 27 per cent to the company's consolidated revenue is under pressure much in the same way like most of its peers owing to global financial turmoil, which has hit the BFSI sector the hardest. The committed revenue from Citi as a part of the transaction is supposed to be the driving factor for going after the deal, according to industry analysts.

Girish S Paranjpe, Joint CEO, of Wipro's IT Business, however, said the company decided to acquire the unit because of the values it brings to the table.

"We acquired it because of the quality of the unit that has been set up; and the knowledge and expertise of the people there. A very few global banks actually have done this kind of sophisticated works out of India. This brings us a unique capability which is not only in terms of people, but the experience on how to run a global operation like this. More than that, it also gives us the chance to scale it up and take it to the next level. I think this is a wonderful opportunity," Paranjpe told Business Standard.

Wipro said that the Master Services Agreement that they have signed with Citi does not restrict them from serving other clients out of the centres. "We are under obligation to make sure that the works for Citi does not suffer," Soumitro Ghosh, senior vice president, Finance Solutions, Wipro said. Wipro will provide technology infrastructure service and application development & maintenance services to Citi as part of the transaction.

Wipro has a cash reserves of close to $1 billion, including a short-term loan of close to $500 million it raised in March last year.

Engineer killed for not 'funding' Maya's b'day party

An executive engineer of Public Works Department (PWD) was allegedly beaten to death by some unidentified persons, believed to be supporters of the local BSP MLA here, about 100 kms from Kanpur.

Uttar Pradesh Engineers Association has gone on an indefinite strike to protest the incident.

According to a report lodged with the police by Shashi Gupta, wife of deceased M K Gupta, two unidentified men entered their house in Gail Vihar in Dibiyapur forcibly yesterday night and started beating her husband badly.

They locked Shashi in a bathroom and continued beating the engineer, injuring him seriously, the report said.

Later, local BSP MLA Shekhar Tiwari allegedly reached the spot and left the seriously injured engineer at a nearby police station, from where he was rushed to the hospital, the wife said, adding that he was declared dead at the hospital.

ADGP (Law and Order) Brij Lal said in Lucknow that police were looking for Tiwari who is absconding. The role of Tiwari is under the scanner, according to police.

Tiwari is believed to have demanded a huge amount of money in connection with the birthday celebration of party leader Mayawati from the engineer, who is understood to have turned down the demand.

According to Shashi, the two unidentified men were addressing each others as Tyagi and Bhatia, police said.

"We have registered an FIR in this connection and probing the entire matter", Additional Superintendent of Police, Sureshwar Mishra said.

While the motive of the crime is being ascertained, police is not ruling out the possibility of the extortion angle being behind it. Mawayati's birthday falls next month.

When asked about it, Mishra said that it was matter of investigation.

Senior police officers including the IG and the DIG have rushed to the spot.

World Bank Admits Top Tech Vendor Debarred for 8 Years

For months, the World Bank has been stonewalling and denying a series of FOX News reports on a variety of in-house scandals, ranging from the hacking of its most sensitive financial data to its own sanctions against suppliers found guilty of wrongdoing.

But last week the world's most important anti-poverty organization suddenly came clean — sort of — in its tough sanctions against a vitally important computer software service supplier that has been linked not only to financial wrongdoing but also to the ultrasensitive data heists.

A top bank official, FOX News has learned, has admitted that a leading India-based information technology vendor named Satyam Computer Services was barred last February from all business at the bank for a period of eight years — and that the ban started in September.

The admission confirms what FOX News reported from its own bank sources on October 10 — a report the World Bank officially disparaged at the time.

The World Bank's revelation of the ban on Satyam comes at a watershed moment for the $2 billion (sales) outsourcing giant, which boasts more than 100 Fortune 500 companies as clients and which trades on the New York Stock Exchange. Last week, India's securities commission announced that it would investigate Satyam.

The move came after the company's founder-chairman suddenly announced the company would spend $1.6 billion to buy two distressed real estate and infrastructure companies that are run and partially owned by his two sons. After Satyam's stocked dropped 55 percent in value, the company reversed course.

The World Bank debarment — the harshest sanction the world's largest anti-poverty agency has imposed on any company since 2004 — was meted out for "improper benefits to bank staff" and "lack of documentation on invoices," according to Robert Van Pulley, the top World Bank information security official.

True to its secretive ways, the bank did not make the admission in public. Instead, Van Pulley made the comments in a meeting and two telephone conversations with officials of the Government Accountability Project (GAP), a 30-year-old whistle-blowing organization based in Washington.

One of the phone conversations was recorded, and FOX News was allowed to listen to the tape after the World Bank backed away from its initial insistence that the conversation remain unreported.

Even so, when asked to comment on the recorded conversation, Van Pulley did not return telephone calls from FOX News. But in a conversation last Thursday with GAP, he conceded the Satyam case had been turned over to the Justice Department in 2006 — as FOX previously reported — as well as to the U.S. Treasury Dept.

It is not known if a case against Satyam or World Bank officials is being pursued by either government agency.

Van Pulley was recently named acting head of information security of the World Bank Group, as part of a management shakeup in the wake of a FOX News series about cyber breaches, corruption and cover-ups at the bank. He is also in charge of the bank's procurement department, where he oversaw the Satyam contract.

From 2003 through 2008, as FOX News reported, the World Bank paid Satyam hundreds of millions of dollars to write and maintain all the software used by the bank throughout its global information network, including its back-office operations. That involved overseeing data that ranges from accounting and personnel records to trust funds administered for many of the world's richest nations.

But at the same time, Satyam was straying badly across the bank's ethical warning lines. In 2005, the bank's chief information officer, Mohamed Muhsin, was ousted after being accused of improperly buying preferential stock options from Satyam, even as he awarded the firm major contracts. A top-secret investigation led to Muhsin being banned permanently from the bank in January 2007. But for reasons that remain unclear, Satyam was allowed to remain in control of the bank's information network until early October 2008.

Van Pulley initially agreed to talk with GAP only off the record after the organization raised questions based on the FOX News reports with World Bank president Robert Zoellick. But GAP international program director Beatrice Edwards, a participant in the talks, objected.

"In this investment climate, there is really very little tolerance for maintaining secrecy about malfeasance at high levels of publicly traded companies," she warned Van Pulley. "And if your own vendors are engaged in bribery of high-level bank officials, and that is secret and off-the-record, that is a problem."

Van Pulley then reversed himself and allowed GAP to make his remarks public — but still refused to provide a written version of his admission. At press time, however, an anonymous World Bank spokesman conceded to FOX News that Satyam was "suspended" in February, declared a "non-responsive vendor" and then "made ineligible to be a bank corporate vendor" until the year 2016.

To date, the World Bank boasts it has banned 343 individuals and companies from doing business with the bank — in many cases permanently. A list of the debarred firms is on the bank's website, but Satyam's name is not included.

In October, Satyam declined to speak with FOX News about anything related to the World Bank, including any ban. But during a press conference several days after the article was published, a Satyam board director and senior executive, Ram Mynampati, denied the company had been banned from future work.

Securities lawyers contacted by FOX News say the debarment by the World Bank — one of Satyam's largest and most important customers — should have been announced by the company to its shareholders immediately and also filed with the U.S. Securities and Exchange Commission.

The World Bank's denials and quiet admissions about its troubled relations with Satyam also refocuses attention on an earlier set of bank denials, after FOX News in October reported that the Satyam-supervised computer network of the World Bank Group had been hacked repeatedly by outsiders for more than a year.

According to FOX News sources, one of the worst breaches apparently occurred last April in the network of the bank's super-sensitive treasury unit, which manages $70 billion in assets for 25 clients — including the central banks of some countries.

Sources told FOX News that bank investigators had discovered that spy software had been covertly installed on workstations inside the bank's Washington headquarters — allegedly by one or more contractors from Satyam. "I want them off the premises now," Zoellick reportedly told his deputies. But at the urging of the bank's then-chief information officer, Satyam employees remained at the bank through early October while it engaged in a "knowledge transfer" with two new contractors.

The bank has vociferously denied that any breaches of its treasury unit took place. And, in his discussion with GAP's officials Thursday, Van Pulley denied that Satyam was behind any of the bank's security breaches. Asked by GAP's Edwards who is responsible for the breaches, Van Pulley stated, "I'm not in a position to tell you," adding that "we're confident" it wasn't Satyam.

Tuesday, December 23, 2008

Satyam's credibility in line of fire







BANGALORE/NEW DELHI: Concerns surrounding corporate governance and the decision-making capabilities of the management of Satyam Computer Services

could adversely affect the way the company is viewed by potential customers such as Australian phone firm Telstra and existing clients such as Applied Material, IT industry insiders and analysts say.

While customers look at the consulting and technical capabilities of a vendor, any ambiguity around management and corporate governance will send the wrong signals, especially when an outsourcing decision is being taken, an expert familiar with outsourcing decisions at Telstra and several other customers said, requesting anonymity.

India’s fourth largest software exporter faced a backlash from financial investors after it announced a decision to buy companies run by the sons of Satyam founder-chairman Ramalinga Raju for $1.6 billion. Within a few hours, a chastened Satyam called the deal off. Satyam, which ironically won Golden Peacock Award for corporate governance this year, might have some explaining to do while bidding for large deals worth $50-$100 million.

Existing customers such as Applied Material, which awarded a $200-million contract to Satyam last year, are also concerned. “In fact, Applied Material earlier thought Satyam was acquiring an IT infrastructure company. After they got the true picture, they are concerned,” said a person familiar with decision-making at Applied Material. The company itself could not be reached for comment on Wednesday. A Satyam spokesperson did not reply to an email query by ET.

Many large customers, including US conglomerate GE, are expected to review and plan their IT budgets over the next two months, and several others will be looking to renegotiate their existing contracts. “We fear collateral damage as Satyam defends its customer base from predatory attacks from competition, and perhaps pricing will get even weaker,” said Bhavtosh Vajpayee of CLSA.

While any ambiguity will send the wrong signals to potential customers and existing clients of Satyam, there are concerns that the rest of the Indian IT industry may be tarnished with the same brush. “When a company such as Satyam attempts to do something like this, it also raises questions about the industry as a whole in the minds of customers,” said Sabyasachi Satyaprasad, founder of outsourcing advisory firm Mindplex.

“Customers planning to reduce the number of vendors they work with will also think twice before retaining Satyam,” he added. A Mumbai-based investment banker said the knee-jerk reaction demonstrates that Satyam is losing interest in the IT business. “Why will any client give its IT contract to Satyam? At a point when growth is the single most challenge, the move sends a wrong signal to the market.’’

Analysts such as James Friedman of Susquehanna Financial Group, described the developments as “reckless behavior with regard to corporate governance and cash balance usage for other considerations while its (Satyam’s) peers instead are contemplating and/or pursuing share repurchases.” In a note on Wednesday, Mr Friedman observed that that it will be a hard grind to restore management credibility at the company, “but we believe a share repurchase would go a long way.”

Anil Advani, research head at SBICAP Securities, said that customers might reconsider their decisions fearing a possible takeover of the company and a potential management change. Meanwhile, industry veterans such as Raman Roy, who helped outsourcers such as GE establish their IT offshoring programs in India, said the impact might not be severe for Satyam.

“Corporate governance is a hygiene issue, which is significant in cases where the relationship is strategic and larger than a simple client-vendor relationship. In a normal vendor-client relationship, the impact will be less significant,” said Mr Roy, who is now the managing director of Quatrro BPO Solutions.

(With inputs from Shelly Singh in Delhi)

Recession hits liquor sales in Kerala

Sun, Dec 21 11:30 AM

Thiruvananthapuram (Kerala), Dec 21 (ANI): The ongoing global economic meltdown has pulled down liquor sales in Kerala, one of the highest liquor consuming states of the country.

The beeline at counters of beverages corporation during peak hours in the evening has dried up. Barely more than five to six people are seen at leading shops in Thiruvananthapuram.

Biju Ramesh, owner of the leading liquor giant in the state, owing about 20 bars here, said that he is facing about 20 per cent decline in his sales.

"We are not getting the medium segment and cheap segment liquor. It's not available in the Kerala State Beverages Corporation. Now in December, we are facing a lot of problem. There is very scarcity in the medium segment also," said Ramesh.

According to figures, in the last month, the sales of Indian Made Foreign Liquor (IMFL) dropped by 22.23 per cent. The sales might increase in December due to Christmas and New Year.

Residents feel that as the purchasing power of common man has gone down. They think twice before purchasing liquor.

"Liquor sector has the dubious distinction that Kerala stands first in the consumption of alcoholic beverages. The purchasing power or spending capacity of the common man has come down drastically. The daily bread earner is thinking twice on pending so much money on liquor," said Prakash, a resident.

In September last year, the sale of liquor was 4.8 billion rupees, but this year it went down to 3.81 billion rupees.By K S Ashik (ANI)

GM equity may be wiped out: Credit Suisse

General Motors SUV's are displayed in an autosales lot in Troy, Michigan in this June... Enlarge Photo General Motors SUV's are displayed in an autosales lot in Troy, Michigan in this June...

Mon, Dec 22 07:58 PM

Reuters - General Motors Corp's equity may be largely if not entirely wiped out as it complies with the restructuring targets laid out in the federal auto bailout, an analyst at Credit Suisse said, cutting his price target to $1 and his rating to "underperform."

GM shares were down about 7 percent at $4.19 in trading before the bell Monday.

"Over the next two months...it will become increasingly clear that the enormous sacrifice of value on the part of the union and bondholders will require the complete or near-complete elimination of the existing GM equity," analyst Christopher Ceraso wrote in a note titled "Game Over for Existing Equity."

The U.S. government on Friday came to the rescue of U.S. automakers with $17.4 billion in emergency loans, some $13.4 billion of which will be made available in December and January, taken from a $700 billion Wall Street bailout fund originally designed to rescue struggling financial institutions.

The government attached a string of conditions to the three-year loans and set a deadline of March 31 for the automakers to prove they can restructure enough to ensure their survival or have the loans called back.

As part of the rescue, GM is required to reduce debt by two-thirds via debt-for-equity swaps, pay half of the contributions to a retiree health care trust using stock, make union workers' wages competitive with foreign automakers and eliminate the union jobs bank, which pays laid-off workers.

"If GM and its stakeholders can navigate through a tricky set of negotiations, and all parties can agree to sacrifice value in a manner consistent with the targets laid out by the government, we still arrive at a discounted cash flow-derived equity value of less than one dollar per share," Ceraso said.

If the bondholders and unions cannot come to an agreement over the amount of value to be sacrificed, GM may still end up in bankruptcy court, Ceraso said.

Ceraso previously rated the stock "neutral" with a price target of $2.

Monday, December 22, 2008

Satyam's big guns may run out of ammunition

18 Dec 2008, 0413 hrs IST, Jessica Mehroin Irani & Dev Chatterjee, ET Bureau


MUMBAI: Satyam’s abortive bid to acquire Maytas Properties and Maytas Infrastructure has given rise to some uncomfortable questions on the

actions of the Satyam board. As it happens, some of the independent directors on that board have storied reputations which are likely to take a knock in the wake of the bizarre episode.

Despite attempts by this paper, some of the big guns on the board were not reachable at the time of going to the press. Vinod K Dham, famously known as `father of Pentium’ and an ex-Intel employee, when contacted by ET in the United States first refused to talk, saying that it was midnight in the US. Early morning, calls were forwarded to an answering machine.

ET’s detailed mail to Krishna G Palepu, a famous Harvard professor, also remained unanswered at the time of going to press. Mr Palepu and Mr Dham attended the board meeting via conference calls as both were in the US Tuesday evening. The board was again consulted over the telephone to revoke the decision early Wednesday. The board was alerted late on Tuesday after investors, in the course of the now-famous conference, made it clear what they thought about the decision.

The dean of the Indian School of Business, Mr Mendu Rammohan Rao, chaired the infamous meeting whose decisions, and their rapid reversal in the wake of shareholder fury, is now part of India’s corporate history. Mr Rao did not respond to repeated calls to his mobile by ET.

Other directors were more forthcoming, and defended the board’s decisions. Two independent directors on the board of Satyam Computers defended the Maytas acquisition, saying it was in the best interests of all shareholders as margins from the infotech business was falling whereas they saw a huge upside in the infrastructure and realty sector.

“Even your uncle will not sell you the land at the price Maytas was selling it to Satyam,” said T R Prasad, an independent director on the board of Satyam Computers and former cabinet secretary of India. He spoke to ET from Visakhapatnam.

The land was valued at Rs 1 crore an acre, Mr Prasad said, thus giving a valuation of Rs 6,500 crore for the entire 6,500 acre owned by Maytas. E&Y, Mr Prasad said, had given a report on Maytas which was considered by the board. However, in a statement to ET, E&Y denied doing any work for Satyam in relation to the deal. An E&Y spokesperson said that the firm had “no connection of any kind with the transaction”.

“We used common sense in this deal as prospects for infotech industry is not looking very bright and we think that realty prices have now bottomed out,” Mr Prasad said. “Infrastructure has great potential and Maytas Infrastructure could be compared to tomorrow’s L&T or Punj Lloyd,” he said.

Mr Prasad said all directors were unanimous in their decision to acquire Maytas Infrastructure and Maytas Properties and there was no dissent note. A Satyam spokeswoman said that Ramalinga Raju and Rama Raju, the promoters of the IT firm, were not present at the meeting when the other seven directors were voting on the deal. V S Raju, another independent board director and Mr Prasad, told ET that the two promoters did not take part in the voting.

The deal wasn’t sprung on the board of directors as they had been informed of the meeting’s agenda earlier. Mr Raju, a former director of IIT-Delhi and currently the chairman of the Naval Research Board, Defence Research and Development Organisation (DRDO), said that it was a well considered decision and that the agenda for the meeting had been circulated ‘well in advance’.

“It (decision) was done with all good intentions. We were surprised the market did not see it in the same light as us. We expected a normal or flat response, but not this,” Mr Raju said. Mr Raju was in agreement with Mr Prasad on the falling margins of Satyam. It was difficult for Satyam to reach its targets with its core IT business and hence they believed the acquisition would have helped them achieve those targets in the long-term, Mr Raju added. Mr Prasad said the company’s board had done its due diligence properly and adds the valuation looks reasonable considering the home prices in Hyderabad are at around Rs 3,500 to 4,000 per square foot while Maytas’ cost of building homes will be around a maximum of Rs 1,500 a square feet. “I still think it was a good deal for Satyam’s acquisition cost as land prices at Rs 300 a square feet was based on the state government’s notified prices,” Mr Prasad said.

On the conflict of interest, Mr Prasad said the board gave precedence to common sense and business potential rather than looking at promoter’s family connections.

Bankers pointed that valuers normally also look at the cash flow and the earnings report. On the question of the land value, normally a report from a real estate consultant is used for decision-making. Though there were reports that another bank was appointed for a fairness valuation, this could not be confirmed. The fairness valuation informs the board if the proposed transaction is fair to the shareholders.

Madoff scandal may be biggest in Wall Street history

1 Dec, 2008, 1924 hrs IST, AGENCIES


NEW YORK: When Bernard Madoff allegedly admitted that his investment company was a "big lie," few realized just how big -- and even now, as repor
ts of damage spread, no one is quite sure.


The alleged multi-billion-dollar Ponzi scheme revealed with Madoff's arrest December 11 may be the biggest in Wall Street history.

Already the scandal has sent shockwaves through Madoff's ex-clients worldwide and underlined systemic problems at the heart of the US financial industry and the government agency meant to watch over it.

As the investigation enters its second week, no one can tell where the damage will end.

The list of victims is already staggering, ranging from a charity run by Hollywood mogul Steven Spielberg to Japanese bank Nomura and European banks, where exposure ran into the billions of dollars.

Prosecutors allege that Madoff has confessed to losing upward of 50 billion dollars over years of running a pyramid scheme, where new investors were secretly fleeced to pay returns to existing investors.

What investigators don't know is where all that money went. This will be one of the main focuses this week, as victims clamor for compensation.

Other key questions include whether Madoff acted alone, and why the Securities and Exchange Commission failed to nail his alleged scam.

There were numerous red flags, not least the eerily consistent returns he provided investors and the bizarre fact that accounting for the huge enterprise was handled by a three-person office at an obscure firm outside New York.

Not only this, but the SEC actually opened an enquiry in 2006, following explicit accusations by a rival investor to Madoff, yet dropped the matter shortly after.

"I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations," SEC chairman Christopher Cox said.

The probe will "include all staff contact and relationships with the Madoff family and firm, and their impact, if any, on decisions by staff regarding the firm," he said.

According to the Wall Street Journal, SEC investigators will be looking into Madoff's niece and a former SEC official she married in 2007.

The actions of Madoff's family members are an integral part of the extraordinary drama.

According to prosecutors, the affair first came to light when Madoff bared all to select employees. The Wall Street Journal says these were in fact Madoff's two sons.

But just a week later, Madoff was apparently unable to rely even on his sons for help.

Madoff, former pillar of Wall Street, former chairman of the Nasdaq stock market and a mainstay of the powerful American Jewish community, had been required by the court to sign up four bail guarantors.

He could only find two -- his wife and brother.

Following that humiliation, a court ordered Madoff to wear an electronic tag and to remain confined to his seven-million-dollar Manhattan apartment.

The mess has soured a public already disgusted with Wall Street as the source of the rotten practices that brought down a string of financial institutions in September.

In some quarters on the Internet that anger has emerged as crude anti-Semitism that the Anti-Defamation League on Friday called "deeply offensive."

"Jews are always a convenient scapegoat in times of crisis, but the Madoff scandal and the fact that so many of the defrauded investors are Jewish has created a perfect storm for the anti-Semites," said Abraham Foxman, ADL national director.

Sunday, December 21, 2008

South Africa beat Australia after record chase

December 21, 2008 13:42 IST
Last Updated: December 21, 2008 14:31 IST

AB de Villiers hit an unbeaten century to guide South Africa to a successful record-breaking run chase of 414 -- the second biggest run chase in Test history against Australia at the WACA in Perth on Sunday.

De Villiers was unbeaten on a cracking 106 and debutant JP Duminy was not out on 50 as South Africa produced a great batting display on the fifth and final day to win the opening Test by a comfortable six-wicket margin.

Captain Graeme Smith had given them a perfect start in their second innings with a magnificent 109, adding 153 runs for the third wicket with Hashim Amla (53)

Mitchell Johnson , who took eight for 61 in the first innings, continued chipping away at the wickets in the second innings but the South African middle order came to the party in fine style.

Resuming on 227 for three, veteran Jacques Kallis hit a timely half-century (57) and was involved in a 124-run partnership for the fourth wicket with de Villiers to give the visitors the upperhand.

But the wicket of Kallis, with South Africa needing another 111 runs for victory, left the match evenly poised.

De Villiers then took centrestage and he along with Duminy scored runs at will as the Australian bowlers seemed completely clueless.

De Villiers hit nine boundaries in 186 deliveries, his seventh Test century, as South Africa coasted to the victory target in 119.2 overs in the post lunch session.

Incidentally, the highest run-chase in Test cricket had come also against Australia when the West Indies chased down a mammoth 418 for seven at St John's in 2003.

Highest run-chases in Test cricket:

West Indies418-7v AustraliaSt John's2003
South Africa414-4v AustraliaPerth2008-09
India406-4v West IndiesPort of Spain1975-76
Australia404-3v England Leeds1948
India387-4v EnglandChennai2008-09

Schwarzenegger orders mass layoffs

WASHINGTON: California's Governor Arnold Schwarzenegger has ordered mass layoffs and unpaid furloughs for state workers starting February to addr

ess the states' fiscal crisis.

Over two lakh employees will be compelled to take off two unpaid days every month through June 30, 2010. The managers will have to bear receiving either the furlough or an equivalent salary reduction during the same span, Los Angeles Times reported today.

The mandatory time off is the equivalent of about a 9 per cent pay cut for affected workers and the furloughs would save the state more than USD 1.2 billion, the report quoted HD Palmer, spokesman for Schwarzenegger's finance department as saying.

The number of people losing their jobs was unclear. Schwarzenegger had earlier also attempted to unilaterally reduce the pay of state employees, but nothing happened at that time as the state's payroll system was incapable of carrying it out.

The governor's order was, however, condemned by the officials of state employee unions, who vowed a legal challenge.

"Our state's fiscal crisis has worsened dramatically in the past few weeks without legislative action to address our budget crisis," the paper reported Schwarzenegger as saying in a letter to state employees yesterday, after he declared another fiscal emergency and called a new special session of the legislature.

Minister doubts who killed ATS chief Karkare

New Delhi: Union Minorities Affairs Minister A R Antulay suspects the truth behind Maharashtra Anti-Terror Squad chief Hemant Karkare’s murder is being suppressed.

Karkare was leading the investigation into the Malegaon blast and was shot dead during the Mumbai terror attacks on November 26. Antulay told CNN-IBN he was not sure whether Karkare was a victim of terrorism “or something else”.

“Karkare was a very bold officer. I know his acumen was great. He had vision and was prepare to lay down life for country at any time. Now how come instead of going to the Taj (Hotel) or the Oberoi (Hotel) he went to such a place where there was nothing?” said Antulay.

“He was also making an independent investigation. (in which) he found that there were non-Muslims who were terrorists. Whether he was just a victim of terror or something (else), I don’t know. I knew him personally; I salute him.”

Karkare, Additional Commissioner of Police Ashok Kamte and Inspector Vijay Salaskar were shot dead by the terrorists who had hijacked a police vehicle and were speeding away toward the Cama Hospital.

Karkare had come under attack from Hindu groups for arresting Hindus for the Malegaon blast and was accused of working under political pressure. At least two Hindu seers and a serving officer have been arrested for the blast, which killed five persons in the communally sensitive Maharashtra town on September 29 last year

Saturday, December 20, 2008

Upaid Requests Depositions of Top Satyam Executives in Connection with Maytas Transaction Asset-Stripping Attempt in Advance of Texas Trial Judgment

LONDON, Dec 18, 2008 (BUSINESS WIRE) -- Online and mobile payment services leader, Upaid Systems, announced it is filing today a motion in Collin County, Texas district court requesting depositions of Satyam Computer Services' Chairman, Chief Financial Officer and Global Head of Corporate Governance in connection with the attempt earlier this week to strip all surplus cash from the company in a $1.6 billion related-party transaction benefiting the family of Satyam's founder and Chairman.

Satyam is facing suits in U.S. Federal and State Courts filed by Upaid claiming fraud, forgery and breach of contract, as a result of which Upaid has suffered damages to its business and prospects in excess of $1 billion. The Federal Court proceeding is currently scheduled for a Texas jury trial in June of 2009, and Satyam is facing the potential of a very sizable judgment against it. At present, Satyam has cash resources to pay a $1 billion plus judgment or the liquidity to support a supersedeas bond. However, on December 16, 2008, Satyam announced a plan to strip $1.6 billion of cash out of the company, an amount that exceeds its cash, in a transaction to acquire Maytas Properties and Maytas Infra, whereby the large majority of this cash would go to the family of Satyam's Chairman, Ramalinga Raju. That Satyam would proceed with a transaction that seems so clearly designed to deplete its assets in advance of a judgment, rightfully concerns Upaid that Satyam may be willing to engage in fraudulent transfers to avoid its legal obligations.
Satyam has put its reputation in the business community squarely at issue in court proceedings it has filed against Upaid. The Satyam executives whose depositions are being requested, Ramalinga Raju, (Chairman) Srivinas Valdamani (CFO) and G. Jayaraman, (Global Head - Corporate Governance) are in the best positions to know Satyam's reputation in the business community and the events that have drawn such widespread criticism in the marketplace as underscored by recent news reports. The evidence of Satyam's poor corporate governance and business practices has been mounting, harming Upaid, other customers and now Satyam's shareholders. The Maytas transactions further damaged Satyam's reputation, sparking widely-reported outrage among Satyam's shareholders and a fire sale on Satyam's stock that resulted in a 55 percent one-day decline in the company's market value.


For a copy of the Motion to take Depositions, please contact Skywrite.

About Upaid
Upaid is the mobile and online payments specialist. Applications range from the recharge of prepaid accounts via SMS, to electronic bill payment and presentment, to billing for mobile content. The Upaid platform supports a complete eco-system for mobile commerce, giving users the choice of an operator-driven or independent billing system.
Upaid holds a portfolio of over 1,000 granted patents in the arena of e- and m-commerce. We work with Brazil's leading mobile operators and banks to enable recharge transactions, serving a user base of over 50 million consumers, processing 2 million transactions per month. Upaid holds the franchise for VISA Mobile Service in the CEMEA region. Upaid has offices in the US, UK, and Brazil. Upaid is a registered trademark of Upaid Systems, Ltd.
For more information, please visit www.upaid.net.
SOURCE: Upaid

IIMs appear to be heading for clash with Centre

The Indian Institutes of Management and the Central government could be heading for another round of confrontations on the key issues of autonomy and fee structure for the premier institutions.

The institutes have rejected recommendations by the Bhargava Committee set up by the HRD Ministry to review the functioning of IIMs.

They say the recommendations if implemented would have compromised the standard of India's premier business schools.

  • The IIMA disagrees with the recommendation of the Committee to create a Pan-IIM Board. Instead, wants greater autonomy to the IIMA Board.
  • IMA disagrees on faculty compensation, proposes that faculty compensation be de-linked from the government compensation structure. IIMA will find its own resources to pay the faculty.
  • IIMA disagrees with the government proposal to set up new IIMs that would be mentored and supported by the existing IIMs.
  • Instead, IIMA would propose that it should be permitted to set up campuses in new locations, both within and outside India.

    PTI adds:"The IIM-A board meeting was held to deliberate on the recommendations of the R C Bhargava Committee. We have not arrived at any final decision on the subject," IIM-A director Samir Barua told reporters after the meeting.

    Some of the 22 recommendations put forward by the Bhargava committee, submitted to the central government on September 25 this year, have been opposed by the IIMs.

    The committee has recommended constitution of a pan-IIM board, i.e. one board for all the IIMs and deciding the structure of fee of IIMs and faculty compensations and shortage.

    However, the IIMs are understood to have disagreed with the pan-India board and instead pressed for greater autonomy to the premier business schools.

    On the Bhargava committee's suggestion for delinking faculty compensation from the government the IIMs want permission to raise their own resources and set up campuses in and out of India.

    The Bhargava committee has also recommended changes in the admission procedure of the IIMs.

    Earlier, the IIM-A under the directorship of Dr Bakul Dholakia was locked in a showdown with the Union Human Resource Development ministry over the autonomy of IIMs.

    "In the report which we are going to submit to the central government, we will explain why we agree or have reservations on the recommendations of Bhargava committee," Barua said.

    An IIM-A board member, who was also present in the meeting said, "We have taken views of all the board members, even of those who were not present, by e-mail. We had a detailed discussion on recommendations but have not arrived at any final conclusion."

    He added that if need be the board will meet again before forwarding its report to the ministry."
    IIM-A is likely to convene another board meeting in a week or ten days, sources in the institute revealed.

    The Indian Institutes of Management and the Central government could be heading for another round of confrontations on the key issues of autonomy and fee structure for the premier institutions.
  • Wipro denies making lay-offs

    Wipro Technologies has laid off a number of workers without notice, according to a source close to the company. Employees said they were suddenly asked to leave.

    The move was especially upsetting for staff who were recently awarded quality achievements. Termination has become more unpredictable, with one employee dismissed on "person to person behavioural front" - believed to be a miscommunication between the worker and a senior official long before. Another commented, "I have no regrets, since getting laid-off doesn’t actually count back my fault."

    One employee still within the company said, "We don’t protest any amount of job, or any kind of harsh behaviour these days, since all we strive is to survive in the organisation.”

    When asked to comment, a spokesperson told IT Examiner , "We have not laid off anybody, ever, and we are not here to justify such matters with the media."

    Rs 50 crore offer for shoes hurled at Bush

    A Saudi man has offered to pay $10 million (about Rs 50 crore) for the pair of shoes that an Iraqi journalist hurled at US President George W Bush during a press conference in Baghdad.

    Mohamed Makhafa, a retired school teacher, says he considers the size 10s a "medal of freedom and more valuable than everything he owns", Al Jazeera news channel reported.

    Muntazer al-Zaidi, the Iraqi journalist who became a hero overnight in the Arab world, had thrown his shoes at President Bush during a joint press conference of the US leader with Iraqi Prime Minister Nuri al-Maliki in Baghdad on Monday.

    "It is more precious than all my property. I will bequeath it to my children and display it in a museum and call it the Medal of Freedom," Makhafa told AlArabiya.net. Makhafa said the combined value of the land and property he owns exceeds the price he is offering for Zaidi's shoes, adding if the journalist's lawyer manages to reclaim the infamous pair he will buy them.

    Makhafa said he does not look at it from a commercial point of view and said his offer was the start of an auction. The 60-year-old stressed that he does not hold a grudge against the US, but said he hates its foreign policies that have humiliated the Muslims. Announcing his offer on the Internet, Makhafa, an activist who has raised voice on various issues, said tribesmen and public figures in the Arab world had expressed their support and many showed interest in taking part in the auction.

    Friday, December 19, 2008

    AstraZeneca outsources IT to India's Infosys

    AstraZeneca has inked a big outsourcing deal with India's Infosys, which will maintain IT systems for manufacturing, supply chain, finance, human resources and more. It's a five-year, multimillion-dollar deal that Astra hopes will improve its operational efficiencies and help it bring new products to market faster.

    The deal is part of AstraZeneca's overall restructuring, and, said Infosys CEO Kris Gopalakrishnan, will help the company focus on its "core competencies" rather than on the nitty-gritty of business processes. Said AstraZeneca's Global CIO Richard Williams, "The combination of Infosys' outsourcing expertise, technology leadership and proven record in rationalizing and standardizing business process were all contributing factors to our decision." No word on exactly how much money will be changing hands.

    Astra's outsourcing to Infosys comes at a time when more and more pharma companies are looking to hand off parts of their operations to outside firms. Drugmakers increasingly use contractors to handle the nuts and bolts of their business, in everything from supply-chain management and bookkeeping to manufacturing to clinical trials. With the economy going south, drugmakers are likely to continue to look to outsourcing as one way to streamline their businesses and cut costs, even as contractors themselves watch their portfolios of business dwindle.

    CBI plagued by acute staff shortage

    CBI is plagued by a staggering 23 per cent vacancies in its sanctioned strength, especially in investigations and legal department, resulting in unusually longer probe and pending trials.

    Top sources in CBI said the country's premier investigating agency has 1402 vacancies of the total sanctioned strength of 5960. While 3209 officers are available in the executive cadre which investigates the cases handed over to the agency, its actual sanctioned strength is 4077.

    Similarly, while the legal department of the CBI has a sanctioned strength of 230, the agency only has 156 legal heads at its disposal.

    "Yes, the vacancies are a problem as the number of cases that we are investigating is too large in comparison with our strength. Many a times, a single Investigating Officer ends up heading 4-5 different cases which ideally he should not," a senior CBI official said.

    The toll of the vacancies can also be seen in the CBI annual performance report. While in 2006, 650 cases were disposed off and 8293 were pending, in 2007, 674 cases were disposed off and the pending cases rose to 8730.

    Similarly, as per the latest data available for 2008, while 537 cases were disposed off, the pending cases have risen to 8871.

    "The legal strength was sanctioned when we used to handle about 1400 cases but now we are handling over 8000 cases and hence our endeavour is to increase its strength by three times," the official said.

    Thursday, December 18, 2008

    India: One of the 5 worst bribe-payers in the world

    December 10, 2008 09:16 IST

    Indian companies have been perceived as one of the worst bribe-payers while engaging in business abroad, ranking along with firms in other BRIC countries - Russia and China - according to anti-corruption organisation Transparency International 2008 Bribe Payers Index, released on Tuesday.

    Though India has improved its BPI score of 6.8 out of 10 this year compared to the last BPI survey in 2006, when it was ranked last with a score of 4.62, it still remains one of the five worst countries in the world, as bribery by emerging exporters is still on the high side. The lower the average score, higher the corruption.

    "The BPI provides evidence that a number of companies from major exporting countries still use bribery to win business abroad, despite awareness of its damaging impact on corporate reputations and ordinary communities," said TI Chair Huguette Labelle in a press statement.

    Belgium and Canada shared first place in the 2008 BPI, with a score of 8.8, indicating that Belgian and Canadian firms are seen as least likely to bribe abroad. The Netherlands and Switzerland shared third place on the index, each with a score of 8.7. On the other end of the spectrum is Russia, which is ranked last with a score of 5.9, just below China (6.5), Mexico (6.6) and India (6.8) (see table).

    The BPI also shows that public works and construction companies are the most corruption-prone when dealing with the public sector, and most likely to exert undue influence on the policies, decisions and practices of governments. In the first of two new sectoral rankings, companies in public works contracts and construction; real estate and property development; oil and gas; heavy manufacturing; and mining were seen to bribe officials most frequently.

    BRIBE PAYERS INDEX (BPI) SURVEY

    Top five 2008

    Top five 2006

    CountryScoreCountryScore
    Belgium8.8Switzerland7.8
    Canada8.8Sweden7.6
    Netherlands8.7Australia7.5
    Switzerland8.7Austria7.5
    Germany8.6Canada7.4

    Worst five 2008

    Worst five 2006

    Brazil7.4Taiwan5.4
    India6.8Turkey5.2
    Mexico6.6Russia5.1
    China6.5China4.9
    Russia5.9India4.6
    Source: Transparency International

    The cleanest sectors were identified as information technology, fisheries, and banking & finance. While most of the world's wealthiest countries already subscribe to a ban on foreign bribery, under the Organization for Economic Co-operation and Development's anti-bribery convention, there is little awareness of the convention among the senior business executives interviewed in the Bribe Payers Survey.

    Transparency International recommends the Indian government to sign the international anti-corruption conventions, ratify the United Nations' convention against corruption and also exhorts it to pass laws like the US Foreign Corrupt Practices Act of 1977.

    "The unfolding financial crisis has shown us just how integrated the world's markets have become. Accountability must be guaranteed across borders, include improved risk management and reach all the way down a company's supply chain," said Cobus de Swardt, managing director, TI.

    "Businesses face a complex challenge, but efforts to improve labour practices, for instance, by working with intermediaries, suppliers and affiliates, show that there is no excuse to not extend anti-bribery standards globally in a similar fashion."

    The BPI is a ranking of 22 of the world's wealthiest and most economically-influential countries according to the likelihood of their firms to bribe abroad. These countries are - Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, Italy, India, Japan, Mexico, the Netherlands, Russian Federation, Singapore, South Africa, Spain, South Korea, Switzerland, Taiwan, the UK and the US.

    The survey asked two questions: whether the respondents had business dealings with companies in the list of 22 countries. If so, how often the companies, having their headquarters outside, pay bribes in their own country. The index was then composed based on the reply to these two questions. Around 2,742 executives in 26 countries were part of the latest survey.

    Satyam clients likely to re-evaluate contracts

    Companies dissatisfied with ‘intent and focus’ of tech major.

    Around six to eight strategic clients of Hyderabad-headquartered IT services major Satyam Computer Services are understood to be thinking of re-evaluating their contracts as they are "no longer satisfied with the intent and focus of the company".

    IT outsourcing contracts of over $200 million (around Rs 960 crore) is up for renewal. Some of the major clients who have long-term strategic relationship with Satyam include Unilever, Nestle, DuPont, Cisco Systems, GE, Sony and Applied Materials. The current move by Satyam could trigger a possible review of their relationships with the company.

    "It's not just the investors, but also Satyam's clients who have not reacted positively to its move to get into the infrastructure and real estate business. They are questioning the long-term intent of the company in terms of supporting clients' requirement in the IT and BPO sector. Even though the acquisitions of the two companies have been called off, some of them are of the opinion that the intent of the management is under question," highly-placed sources familiar with the development told Business Standard.

    Besides, many clients are seriously considering a vendor consolidation, and Satyam is expected to lose out to its competitors in India, including Tata Consultancy Services, Infosys Technologies and Wipro. The current economic environment has spurred majority of the clients of domestic IT services company to ask for a re-negotiation of contracts.

    Driven by many external and internal factors in the wake of a global recession, most clients are going in for a major cost-cutting exercise, which is adversely affecting the Indian IT outsourcing industry.

    While volatility on part of the clients was already present in the mind of the most of companies, the recent move by Satyam has only added to the rising discontentment and "has painted a very negative picture for the entire IT community", a leading analyst said on condition of anonymity.

    "If the focus of the company is going to change, there will be a significant risk for the clients. While outsourcing the IT contracts to vendors, overseas clients take decisions based on the reliability of the vendors. The long-term sustainability of a service provider is a very critical factor for any client before they start engagement with them. This, of course, is the reason why a service provider is required to their clients take into confidence before making any strategic decision, which might deviate from their long-term goal," said Sabyasachi Satpathy, an expert in outsourcing advisory services, and co-founder of Mindplex Consulting.

    It might be quite a while before Satyam's management can bring back the confidence not only into the market, but also its client base and in the process of which "there might be a major churn in the key management", Satpathy added.

    The practice of corporate governance by most Indian companies are also under question, despite the restriction of Sebi and other controlling bodies.

    However, most of the IT services companies, including Infosys and TCS, are known for their strong focus on corporate governance. According to an estimate, many Indian listed companies skip their annual general meeting, and don't take shareholders' approval before taking major decisions.

    "The percentage of people who have invested in IOP or secondary market is very low in India. The large number of investors in India are retail, public and small investors who are highly unorganised, and are being taken for a ride in India. This is not sign of good corporate governance," said Diptarup Chakraborti, principal analyst, Gartner India.

    Satyam: Incredible!

    By entering into related-party deals without shareholder approval, the firm has done irreparable damage to India Inc's reputation.

    Minority shareholders of Satyam Computer have every reason to feel short-changed. Without so much as by your leave, the management has decided to enter into related –party transactions using the company balance sheet.

    Satyam will spend $1.3 billion to acquire the entire stake in Maytas Properties, an unlisted firm owned by the promoters of Satyam. It also plans to buy 51 per cent in Maytas Infrastructure, a listed firm in which the promoters of Satyam own 36 per cent, for around $300 million.

    The Hyderabad-based tech major’s total disregard for corporate governance and shareholders is shocking -- the company does not plan to take the proposal to minority shareholders. Remember that Mr. Ramalinga Raju himself has a very small stake in the company .

    It’s outrageous that the management is enriching the promoters of Satyam at the cost of other shareholders. Indeed, if the company believed that any acquisition in the IT space would not have made sense at this juncture as it would carry the same risks as the existing business, it could have returned the money to shareholders, done a buyback or simply left it on the balance sheet.

    The management has tried to sell the India infrastructure and real estate stories; sure they may be opportunities but this is hardly the way to go about playing the property theme. It would have been more appropriate to take the shareholders into confidence especially when it is spending $1.3 billion (Rs 6,200 crore) for a real estate company even if it owns 245 million sq ft of land.

    The management points out that DLF’s market capitalisation is Rs 47,250 crore and that the company has approximately 750 million sq ft of land. But the two can hardly be compared---DLF has an established track record and brand. For that matter, the market capitalisation of Unitech, which has close to 650 million sq ft of land, is Rs 6,234 crore.

    The management is valuing Maytas Infrastructure, which has a market capitalisation of Rs 2,856 crore and has bagged orders worth $5.7 billion, at Rs 2,740 crore in line with SEBI guidelines. However, the deal will be earnings dilutive. It won’t be surprising if shareholders block the deal---Templeton has indicated that it will go to any lengths to stop this transaction from going through. The move is bound to shock foreign investors and will badly hurt India Inc’s reputation.

    Wednesday, December 17, 2008

    TCS may stretch working hours by half an hour

    Policy yet to be finalised; new timings from next year.
    Extra time

    Constantly looking at ways to improve productivity, says spokesperson

    Earlier, Accenture said employees have to work an extra hour starting January 1


    Adith Charlie
    Remya Nair

    Mumbai, Dec. 12 IT professionals working with Tata Consultancy Services (TCS) will now spend more time at their workplaces, possibly as a fallout of the global economic crisis. The country’s largest software exporter has increased its work hours by 30 minutes — from the existing nine hours a day, to nine-and-a-half hours a day — two persons familiar with the development told Business Line.

    In doing so, TCS has become the second IT major to stretch its work hours, starting next year. Earlier, Accenture, in an internal communication, told its employees that they would have to work for an extra hour starting January 1.

    A spokesperson for TCS who was approached for a response said the company is “constantly looking at ways to improve productivity and efficiency”. On the increase in working hours, no policy has been finalised or communicated yet to the employees, he said.

    Productivity score

    Though every employee at TCS may not have received an official communication on the new working hours, Business Line has learnt that a formal communication has already been despatched to the heads of the various business units within TCS. Employees down the line could be briefed in a few days, sources said.

    An increase in working hours could help the company improve overall productivity, as there will be an increase in the average revenue that each employee generates, according to Mr Harit Shah, IT Analyst, Angel Broking. “Since TCS has over one lakh employees, the productivity improvement for the company could be very significant,” he said.

    Indian IT companies have been going slow on their hiring plans and are hence trying to extract the most out of their existing employees, said another IT analyst who did not wish to be identified. In most cases, increase in work hours is not compensated by salary revisions or extra days of leave, the analyst added.

    US Fidelity seeks to sell Indian tech services unit: report

    NEW DELHI (AFP) — US financial giant Fidelity Investments has put its captive Indian technology services unit up for sale as part of a cost-cutting move, India's Economic Times newspaper reported Monday.

    The successful bidder would get a multi-year outsourcing contract from Fidelity, the newspaper said, citing two unnamed people it said were involved in the sale process.

    Fidelity is one of the world's largest mutual fund, brokerage and wealth management services.

    The newspaper quoted a Fidelity spokesman as saying the possible sale was part of the company's "global business transformation strategy" and that the company was "exploring options."

    Potential suitors for the information technology unit included top Indian outsourcing companies such as Infosys, Wipro and Satyam or foreign companies such as IBM or Accenture, the Economic Times said.

    The move was part of Fidelity's cost-cutting efforts against the backdrop of the global financial crisis, the newspaper said.

    The report comes after both British insurance giant Aviva and Citigroup sold their own Indian back office operations in similar deals earlier this year.

    The IT group is part of Fidelity Research and Management Co India, which provides back office support to Fidelity in the United States.

    The newspaper said the IT unit has 2,000 employees and represents around 70 percent of Fidelity Research and Management Co's employee strength, the Economic Times said.

    The sale would not include those Indian Fidelity employees working in areas such as business analytics, the newspaper said.

    Tuesday, December 16, 2008

    You might soon have 500 TV channels

    December 12, 2008 10:00 IST

    Nowhere in the world have television viewers been spoilt with so much choice as in India -- there are over 360 television channels on air in the country and applications for another 160 await the government's nod.

    With this the number of television channels in the country could go from 360 to over 500.

    Every genre, be it general entertainment, movies, sports, religion, news, music or kids, has over half a dozen options in every conceivable language.

    Is it a recipe for disaster? The unequivocal textbook answer should be, yes. But the facts suggest something else -- no channel, so far, has shut shop, though a great many of them are faced with an unprecedented resource crunch.

    Clearly, the demand for television entertainment is huge. There are about 80 million cable & satellite homes in the country, in addition to another 50-52 million connected by the terrestrial network.

    Annually, some 12-14 million television sets are sold in the country. At least one state, Tamil Nadu, has given out free televisions to people. (It is now learnt to have firmed up plans to hand out another 4 million sets.) It is only natural that for a television-crazed nation, broadcasters will forever stay busy.

    On the other hand, the electronic media gets advertisements worth Rs 8,000 crore (Rs 80 billion) in a year, though over half of this money is cornered by about half a dozen general entertainment channels. The revenue for most channels therefore is not high.

    Still, the low-cost business model, thanks to zero entry barriers, helps them make money. Like their counterparts in most other industries, broadcasters have learnt to make do with less.

    "It's only a handful of channels that fall in the high-risk, high-returns category. And we tend to put the business of all the 360-plus television channels under the scanner," says Sanjay Salil, former television anchor and now the managing director of Mediaguru, a media consultancy.

    According to Salil, a large chunk of the channels have small operations which require an annual expenditure of Rs 1-4 crore (Rs 10-40 million) or even less. "These tend to make money over a period of 2-3 years. While others with mid-sized operations tend to recover their investments in 3-5 years," says he.

    Industry estimates suggest that nearly 60 per cent of all the channels fall in the small to medium category. And these are mainly in genres like religion, music, lifestyle and regional including news and entertainment. Low investments make early break-even possible.

    Only 12-15 per cent of the total can be termed as 'serious' players -- both in the news and entertainment genres, industry sources say.

    The genre which has registered over 100 per cent growth is news. Experts say that a national-level news channel requires a capital expenditure of Rs 60-70 crore (Rs 600-700 million) and a monthly recurring expenditure of Rs 5-7 crore (Rs 50-70 million). A regional news channel requires about half of it. And news channels catering to smaller regions or states can get going with an investment of Rs 3-15 crore (Rs 150 million) and monthly expenses of Rs 1-2 crore (Rs 10-20 million).

    "For a national news channel or a regional channel, investments can be recovered in 3-5 years," says a research-analyst working for a Mumbai-based financial consulting firm.

    However, there have been instances of media firms diluting their stake and getting investors in channels, especially in the news genre. "Dainik Jagran did with Channel 7 (now called IBN 7) or Janmat was acquired by a construction firm," Salil says.

    Clearly, the sector sees no signs of a slowdown. "For the masses, the only source of entertainment is these cable channels and their daily dose of soaps and reality shows. Funds will always come where the masses are the biggest consumers," says Ashish Kaul, executive director & business head of UAE-based Credence International, which is set to launch a number of specialised TV channels in the country next year.

    Realtor sells 262 housing units within 48 hours in Chennai

    Mon, Dec 15 09:10 PM

    Chennai, Dec 15 (IANS) Despite slowdown in real estate sector, Alliance Group, a private real estate firm, sold 262 housing units within 48 hours of the launch of its premium housing colony in the northwest suburbs here, company officials said Monday.

    'We attracted a few thousand customers of whom 262 turned buyers, creating a sort of history. A combination of three factors - price, location and product's quality - is the reason for this success,' the company's chairman and managing director Manoj Namburu told IANS.

    While it refused to divulge the banked inflow from down payment details, a spokesman said the amount collected from buyersit was in tens of millions of rupees.

    The company admitted that the success was due to its hefty 45 percent discount to 'early bird' buyers.

    Named 'Orchid Springs', the premier housing colony has 2,000 housing units, whose carpet areas range from a simple 500 square feet one-bed studio flat to 1,920 square feet penthouses whose prices were between Rs.1.7 million and Rs.5.75 million, a press statement said.

    Located at a distance of 10 km from the city centre in its northwest suburbs, the colony has all modern amenities, including a gym, club, multiplex, swimming pool and a 100-room business hotel. It is within the easy reach of a railhead and top hospitals, the statement added.

    Besides another major project in Chennai's southern outskirts, the company is promoting projects in Bangalore, Hyderabad and other south Indian cities, according to its website.

    Monday, December 15, 2008

    Swiss bank secrecy in toughest test since Nazi gold

    Thu, Dec 11 01:51 PM

    More than a decade after holocaust survivors won compensation from Swiss banks for emptying Jewish accounts that had lain dormant since the war, the pressure is on again to dismantle Swiss banking secrecy.

    This time, the tax collector is leading the charge.

    With Washington joining Germany to press for an end to a code they believe helps tax dodgers, many see it as only a matter of time before the Swiss lift the cloak guarding the secrets of the world's wealthy.

    "The challenge to bank secrecy is a thunderstorm which has been brewing since the holocaust money," said Sebastian Dovey of consultancy Scorpio Partnership. "It is a hot potato and I don't think the heat is going to be turned down."

    Nearly one-third of wealth kept abroad globally is in Swiss banks: the Swiss Bankers Association and consultants estimate this at $2.2 trillion, making the Alpine state the globe's biggest offshore centre ahead of Britain and Luxembourg.

    But its code of secrecy -- which local myth inaccurately claims was introduced to protect fleeing Jews -- is as controversial as it is protective.

    Laid down in a 1934 law, it has spawned plots for bestselling thrillers, but also real-life intrigues such as that of Gizella Weisshaus.

    Shortly before her father was murdered by the Nazis during the war, he told his children about gold coins and jewellery he had stowed away as Germany's army marched towards their home in Romania.

    "I found the money and his gold watch hidden in the roof of my house," she told Reuters by telephone from New York. "And there were some pieces of paper. It didn't mean anything to me."

    Decades later, the Auschwitz survivor was still trying to unravel the riddle of those long-discarded papers which likely contained the numbers of Swiss bank accounts.

    But like many others who travelled to Zurich to trace her father's money, she was turned away repeatedly.

    She later became central to a series of legal actions taken against the banks and in the mid-1990s under pressure from Washington and Jewish community group the World Jewish Congress, they finally paid $1.2 billion for accounts they had sucked dry.

    Now Switzerland faces its toughest assault since. In an escalation of a U.S. investigation into its biggest bank, Raoul Weil, head of UBS's wealth management business, was recently charged with helping Americans hide billions.

    "With the UBS case, Switzerland is under huge international pressure and pretty much back in the situation it was then," said Swiss Social Democrat party official and historian Peter Hug.

    "Holding onto bank secrecy is not going to work in the long term. Switzerland is small and it cannot afford to help tax evasion in its neighbouring countries."

    POLITICAL PRIORITY

    Germany, which at the start of the year paid an informant for the names of tax dodgers who parked money at LGT bank in smaller hideout Liechtenstein, is also pushing for change.

    "In the end, Switzerland will have no way around declaring who its foreign bank account holders are," said Hans Eichel, who as German Finance Minister between 1999 and 2005 tried to tackle offshore havens.

    "This is a business based on a criminal activity -- dodging tax in a neighbouring country."

    The Swiss have already made some concessions: introducing, for example, a tax on income earned by European Union citizens in Swiss accounts.

    Stuart Eizenstat, U.S. Deputy Secretary of the Treasury under Bill Clinton, said the dormant accounts case he helped negotiate prompted the Swiss to cooperate on other fronts.

    "I do think it had a catalytic effect of making the banks more open," he said. "They became strong supporters, for example, of the anti-terrorist financing measures. It did spur them to become more open on money-laundering."

    But with demands from Germany that Switzerland be blacklisted by the Organisation for Economic Cooperation and Development, pressure is rising for more.

    "The Americans said that if you do not cooperate, then we will make sure you cannot do business here," said Eichel. "European neighbours of Switzerland such as Germany have to consider similar measures."

    Many believe an agreement between Liechtenstein and the United States this week to drop bank secrecy in cases of tax evasion could force Switzerland into similar concessions.

    Prince Nikolaus, the brother of Liechtenstein's ruling monarch and the country's ambassador to Brussels, said UBS's problems and Germany's probe of his family's bank, LGT, sent a clear message to offshore havens.

    "It was these two banks -- the biggest in their respective countries -- which were turned into a big case," he told Reuters by telephone from Brussels. "It has symbolic value. It shows the political priority."

    AIR THINNING FOR ELITE

    The pressure from Washington is unlikely to let up. As a senator, U.S. president-elect Barack Obama introduced legislation early last year to make it easier to probe and prosecute tax dodging in offshore locations.

    As president, he will need to fund an economic stimulus plan that analysts estimate could cost at least $500 billion.

    Hug believes Liechtenstein's move shows the air is also getting thinner for the Swiss elite. And he sees the first cracks appearing in the country's usually unshakeable facade.

    "There is a conflict of interest between Swiss industry and the banks," he said. "Industry wants compromise on bank secrecy so that the country's image is not spoilt."

    Switzerland's banks -- the liabilities of its two largest are more than seven times the country's Gross Domestic Product -- have been talking up the services they offer beyond hiding customer identity.

    "This is not all we have," said Urs Roth, Chief Executive of the Swiss Bankers Association. "We do have a number of traditional advantages, like the economic, monetary and social stability."

    Ultimately, however, it may not be the industry but Swiss pride that is the biggest hurdle to dropping bank secrecy. A nationwide vote would likely be needed to change the rules.

    Few speak out publicly on the subject. No major Swiss bank wanted to discuss it with Reuters.

    "The Swiss are so brainwashed, that the bank there is untouchable," said Maram Stern, who as Deputy Secretary General of the World Jewish Congress oversaw negotiations with the Swiss banks about dormant accounts.

    "This was what the normal person on the street was not capable of understanding. There were people asking me: how can you question the bank?"

    (Additional reporting by Lisa Jucca)

    'The BBC cannot see the difference between a criminal and a terrorist'

    December 14, 2008 18:10 IST
    Last Updated: December 14, 2008 18:50 IST

    The British Broadcasting Corporation, a state-sponsored but independently run, media organization has attracted sharp criticism for having "double-standards" in its coverage of the Mumbai terror attacks. Most times the BBC reporters referred to the terrorists who attacked Mumbai as "gunmen" or "militants".

    Well-known thinker and editor-in-chief of Covert magazine, MJ Akbar has taken up the issue seriously. Since November 27, Akbar has refused to appear on BBC to speak about the Mumbai attacks.

    Many British politicians have also taken up the issue with the BBC management. Steve Pound,a British Parliamentarian who represents North Ealing, has issued a strong statement against BBC's biased policy by saying that it was "the worst sort of mealy-mouthed posturing."

    Akbar, had gone a step ahead and has written a strongly-worded e-mail to Richard Porter, head of Content, BBC World News. On December 6, Akbar wrote to Porter that, "I just want to let you know that after decades of friendship and association with the BBC, I refused to give an interview to the BBC over the terrorist outrage in Mumbai. The reason is simple: I am appalled, astonished, livid at your inability to describe the events in Mumbai as the work of terrorists. You have called them 'gunmen' as if they were hired security guards on a night out."

    Akbar further argued that, "When Britain finds a group of men plotting in a home laboratory your government has no hesitation in creating an international storm, and the BBC has no hesitation in calling them terrorists. When nearly two hundred Indian lives are lost, you cannot find a word in your dictionary more persuasive than 'gunmen'.

    Akbar articulated many Indian fans of the BBC when he said," You are not only pathetic, but you have become utterly biased in your reporting. Since we in India believe in freedom of the press, we can do no more than protest, but let me tell you that your credibility, created over long years by fearless and independent journalists like Mark Tully (I am privileged to describe him as a friend), is in tatters and those tatters will not be patched as long as biased non-journalists like you and your superiors are in charge of decisions. Shame on you and your kind."

    Akbar's e-mail was not ignored by BBC. A courteous and very British response did arrive in his mailbox on December 11. Porter had argued that, "The guidelines we issue to staff are very clear-we do not ban the use of the word terrorist, but our preference is to use an alternative form of words. There is a judgement inherent in the use of the word, which is not there when we are more precise with our language. "Gunman", or "killer", or "bomber", is an accurate description which does not come with any form of judgement. However, the word is not banned, and is frequently used on our output-usually when attributed to people. I heard it being used on numerous occasions during our coverage from Mumbai." BBC staffers have guidelines which are a public document

    Without going into specifics Porter claimed, "There is no inconsistency in the way the BBC has reported the attacks in Mumbai, compared to what we have done with events in the UK. If we are to be serious about upholding our policy, then we cannot make a distinction between events in any country."

    In India most critics have pointed out that how BBC termed the July 7, 2005 attackers in London as "terrorists" without hesitation. While in case of Mumbai they used "gunmen" and at odd places "suspected terrorist."

    However, Porter, journalist of 27 years standing, argues, "This policy is the opposite of bias...but it is a difficult one to uphold and is the subject of many discussions within BBC headquarters. Clearly we had the discussion once again in the wake of the Mumbai attacks--and comments like yours are taken very seriously by my editorial colleagues."

    In short, the BBC wants its viewers and readers to use their own brains. Porter wrote, ' I believe those audiences can make their own mind up about the people who carried out the attacks in Mumbai and don't need us to give them any label to reach that judgement."

    Obviously, Akbar has not accepted these arguments. After thanking "courteousness" of Porter's e-mail to him Akbar asked, " But your response does not answer my question: how does the BBC find it easy to define a terrorist when trains and buses in London are attacked, but must slide towards "non-judgmental" definitions when there is a blatant and murderous display of terrorism in Mumbai? Are you serious when you say that you leave it to audiences to make up their own minds? Then why did you not leave it to audiences to make up their own minds after 9/11? "

    Akbar, wrote, "I assume the makers of BBC policies, such as they are, understand English. There is a clear distinction between gunmen and terrorists. Criminals use guns, and can be called gunmen; criminals use guns in the service of crime. Terrorists use guns and worse in the random killing of innocents in pursuit of a political agenda or personal agenda. The killers who came to Taj and Oberoi and the Chatrapati Shivaji railway station and a home where Jewish people lived, did not come to steal art, or railway property or money. They came with the declared purpose of murder and mayhem."

    When Akbar was in London, the tabloids were full of headlines about young people being knifed. Akbar says , " that was crime committed by "knifemen". Al Capone was a "gunman" and I am sure the East End of your city once used to produce "gunmen" who committed crimes.

    Akbar told Porter, " It is a shame that the BBC cannot see the difference between a criminal and a terrorist, and chooses in fact to protect the terrorist by giving him the camouflage of a criminal. This is not a matter of semantics. Terrorists are always happy to fudge the definition."

    Sunday, December 14, 2008

    US atheists want God out of homeland security

    FRANKFORT (KENTUCKY): A group of atheists filed a lawsuit on Tuesday seeking to remove part of a state anti-terrorism law that requires Kentucky’

    s office of homeland security to acknowledge it can’t keep the state safe without God’s help.


    American Atheists Inc sued in state court over a 2002 law that stresses God’s role in Kentucky’s homeland security alongside the military, police agencies and health departments.

    Of particular concern is a 2006 clause requiring the office of homeland security to post a plaque that says the safety and security of the state “cannot be achieved apart from reliance upon almighty God” and to stress that fact through training and educational materials.

    The plaque, posted at the Kentucky Emergency Operations Center in Frankfort, includes the Bible verse: “Except the Lord keep the city, the watchman waketh but in vain.”

    “It is one of the most egregiously and breathtakingly unconstitutional actions by a state legislature that I’ve ever seen,” said Edwin Kagin, national legal director of Parsippany, New Jersey-based American Atheists Inc. The group claims the law violates both the state and US constitutions.

    Kentucky isn’t the only state dealing with religious issues, but Ed Buckner, president of American Atheists, said it’s alone in officially enlisting God in homeland security.

    British Muslims must follow law of the land: Sir Ghulam Noon

    LONDON: Muslims settling down in the UK must not demand parallel Sharia law in the country and follow the law of the land instead, leading NRI ent

    repreneur 'Curry King' Sir Ghulam Noon has said.

    "Those who are complaining about Sharia law, should follow the rules of the land. If you want Sharia law then go to the country where it is prevailing. This is my message," Noon said at the launch of his autobiography, 'NOON, With a View'.

    The 72-year-old Sir Noon, who narrowly survived the recent terrorists' attack in Mumbai, said the UN should deal with the scourge of terrorism and cautioned that unless something drastic was done, the country which is harbouring terrorists would have to pay a heavy price.

    He also said that religion does not sanction violence and terrorists have no religion.

    "Quran says if you kill one human being, you are killing humanity and if you save one, you are saving the humanity," said Sir Noon.

    Narrating his brush with death when terrorists struck the Taj Mahal Hotel in Mumbai on November 26, Sir Noon said he, his brother and two others were to dine at the Hotel's restaurant which came under attack but they decided at the last moment to have their dinner in their room.

    He said this was the fourth time he had narrowly escaped death. He had earlier escaped a road accident as a 22 year old in India before surviving an aircrash in Baghdad in 1972.

    Subsequently, he also survived a bomb blast in a taxi near the same Taj Hotel in Mumbai.

    Saturday, December 13, 2008

    MTNL launches 3G services in Delhi

    Thu, Dec 11 03:34 PM

    New Delhi, Dec 11 (IANS) Ushering in a new era in the Indian telecom sector, Prime Minister Manmohan Singh Thursday launched the state-run Mahanagar Telephone Nigam Ltd's (MTNL) third generation (3G) mobile service 'Jaadu' here.

    Communications and IT Minister A. Raja, who was also present on the occasion, made a video call, demonstrating the capabilities of 3G services.

    Launching the services, the prime minister said: 'I congratulate MTNL and the communications minister for launching the 3G service.'

    'Competition has to be the major propeller of the Indian economy and it has to be a sustainable one,' he said while demonstrating the mobile TV facility available with 3G services.

    'However, effective objective and impartial regulations have to be an integral part of all these processes for investors to invest further,' he added.

    Added Raja: 'BSNL (Bharat Sanchar Nigam Ltd) and MTNL have already been allotted 3G and broadband wireless access spectrum with a view to ensuring early rollout of 3G and Wi-max services in the country.'

    While MTNL has rolled out its 3G services only in Delhi Thursday, BSNL will launch its services in Chennai next month.

    Talking about the revenues generated through licensing fees and sale of spectrum, Raja said: 'After migrating to revenue sharing regime, this sector has contributed Rs.500 billion (Rs.50,000 crore) through licence fee, entry fee and spectrum charges till the end of last financial year.'

    'During this financial year alone, it is expected that about Rs.160 billion (Rs.16,000 crore) will be collected from the licence fee and the spectrum charges,' he added.

    The minister also said mobile number portability (MNP) would be implemented in metros and category A circle by the middle of 2009 and the entire country by end of next year.

    MNP will enable mobile users to retain their telephone numbers when changing from one network to another.

    'This will promote competition among service providers,' he added.

    Wal-Mart to pay $54.25mn to settle US lawsuit

    MINNEAPOLIS: Wal-Mart Stores Inc will pay up to $54.25 million to settle a class-action lawsuit that alleged the discount giant cut workers' brea

    k time and allowed employees to work off the clock in Minnesota.


    Wal-Mart and attorneys for the plaintiffs announced the settlement on Tuesday.

    The class includes about 100,000 current and former hourly workers who were employed at Wal-Mart Stores and Sam's Clubs in Minnesota from Sept 11, 1998, through Nov 14, 2008.

    Wal-Mart has also agreed to maintain electronic systems, surveys and notices to stay compliant with wage policies and Minnesota laws.

    In July, a Dakota County judge ruled against Wal-Mart in the lawsuit, saying the Bentonville, Arkansas-based retailer violated state labor laws two million times by cutting worker break time and "willfully" allowing employees to work off the clock.

    Court proceedings had been scheduled for next month to determine punitive damages.

    Captured terrorist Kasab my son, says father

    ISLAMABAD: Though LeT and JuD may disown him, the father of the lone Pakistani gunman arrested for the Mumbai terror attacks has admitted that th
    Ajmal Kasav

    e young man whose picture was beamed by media across the world, is his son.


    Amir Kasab, the father of Ajmal Amir Iman alias Ajmal Kasab, broke down as he made the admission to the influential Dawn newspaper in the courtyard of his house in Faridkot, a village of about 2,500 people in Okara district of Punjab province.

    "I was in denial for the first couple of days, saying to myself it could not have been my son... Now I have accepted it. This is the truth. I have seen the picture in the newspaper. This is my son Ajmal," Amir said in his first interview to the media since his son's arrest.

    Britain's Observer newspaper and BBC had earlier reported that Iman belonged to Faridkot and had joined the Lashker-e-Taiba some time ago.

    The Observer's correspondent had located Iman's home and got hold of the voters' roll which had the names of his parents Amir Kasab and Noor as well as the numbers on their national identity cards.

    Reports had said that Iman left home as a frustrated teenager about four years ago and went to Lahore in search of a job. After a brush with crime in that city, he reportedly joined the LeT.

    Amir Kasav, a father of three sons and two daughters, said his son disappeared from home four years ago. "He had asked me for new clothes on Eid that I couldn't provide him. He got angry and left," he said.

    Facebook under fire from Australian users for racial slur

    Fri, Dec 12 05:10 PM

    Sydney, Dec 12 (ANI): Social networking site Facebook has come under fire from Australian users for ignoring racial vilification on the site and allowing in racist groups which have been marked as offensive.

    Alex Gollan, a Sydney-based Facebook user, who campaigned against the racist groups, has been threatened with violence, and he now fears that the site will be used to rally people for violence.

    This week the site permanently banned one offender, but only after the racism issue came under the spotlight after revelations that Scots College and Kambala students had created anti-Semitic groups on the site.

    Some of the racist Facebook groups are, "F--- Islam", "I hate Israel", "You're in Australia ... Speak English!", "Aussie Pride! Love it or Get The F--- Out", "Learn the Aussie Language, Respect Our Way Of Life, It's Not Hard!", "Respect Australia or F--- Off!", "Asian drivers should be forced to display A-Plates" and "I cannot tolerate South African Accent".

    Some of the postings that were posted were full of racial epithets, derogatory remarks and threats and taunts for Muslim users to blow themselves up or leave the country.

    "I have personally had groups which have been set up for the appreciation of where I live ... which have had rude and racial pictures uploaded by members in a hope to spark some sort of 'online fight' where people become all hard and tough behind their computer screens and say things they would never say if they were put in person," the Sydney Morning Herald quoted Sydney Facebook user David Cohen as saying.

    Aboriginal Facebook user Chris Bonney and several of his friends tried for months to convince Facebook to shut down the group "I'm not apologizing for shit u f-- abo's - this is our country now!", however, he received no response from the site.

    Bonney said he eventually resorted to contacting people who appeared on the friends list of the group's moderator, informing them of the racism.

    "He eventually closed down the site because of our work ... but the main issue is Facebook didn't do one thing to stop this sort of behaviour," Bonney said.

    Asked to respond to the claims that it was not doing enough to stamp out racism on the site, Facebook said it took all complaints by users seriously and there was a "dedicated team" investigating such complaints, which can be made through the "report" function on any page of the site.

    "Facebook is a platform, and as such we sometimes see users posting about, debating and discussing controversial issues," the company said.

    "However, this alone is not a reason to disable a group. Facebook will investigate, and will remove any content that violates our Terms of Use," the company added. (ANI)

    Friday, December 12, 2008

    Krishnaiah murder: Former MP's death row commuted to lifer

    PATNA: In a major respite to former Lok Sabha MP Anand Mohan and six others convicted in the former Gopalganj district magistrate G Krishnaiah mu

    rder case, the Patna High Court on Wednesday commuted his death sentence to life imprisonment and acquitted the others.

    A division bench comprising Justices Shiv Kirti Singh and S M Mafooz Alam converted the death sentence into life imprisonment. Six others, including Mohan's wife Lovely Anand, also a former Lok Sabha member, were acquitted for lack of evidence.

    "Since Mohan has been accused of inciting the mob to kill the victim and had not personally murdered him, the case does not fall in the category of rarest of rare cases and so his death sentence is converted into life imprisonment," the court said.

    With regard to six others convicted of murdering Krishnaiah in 1994, the bench said, "since the prosecution failed to establish the charges against the appellants beyond reasonable doubt, they stand acquitted."

    Besides Lovely Anand, Former minister Akhlaq Ahmed, former MLA Arun Kumar, MLA (JD-U) from Lalganj Vijay Kumar Shukla alias Munna Shukla, Shashi Shekhar and Harendra Kumar were acquitted.

    Mohan, former MP from Sheohar, was awarded life term under sections 302 (murder) and 109 (abetment of offence).

    Additional district and sessions judge R S Rai had, on October 3, 2007, awarded the death sentence to Mohan, Ahmed and Arun Kumar and life imprisonment to Lovely Anand, Munna Shukla, Shashi Shekhar and Harendra Kumar.

    India ranks third in rape cases

    NEW DELHI: India stands third, leaving behind countries like Sri Lanka, Jordan and Argentina, when it comes to rape cases, latest data of the home

    ministry suggests.

    Ahead of India are only the United States and South Africa.

    According to the data, 18,359 rape cases were registered in India in the first three quarters of this year while in the US, 93,934 and in South Africa 54,926 rape cases were registered respectively.

    The lowest number of rape cases were registered in Jordan (78), Latvia (260), Bulgaria (403) and Finland (596).

    Some of the other countries where a large number of rape cases were reported include Germany (8,133), Thailand (5,060), Sweden (3,787) and Argentian (3,447).

    Altogether 44,159 cases of different sex offences were registered across India in the said period. In such cases too, India stands third after England and Germany where 62,100 and 47,070 cases were registered respectively.

    Four other countries where the numbers of sex offences were high include Canada (26,044), Australia (17,516), Sweden (7,924) and Argentina (3,473).

    According to the data, the incidence of various crime per one lakh population in India are -- murder (3), sex offences (4), rape (1.7), serious assault (24.6) robbery and violent theft (2.1), breaking and entering (8.2) and theft of motor cars (7.8).

    Thursday, December 11, 2008

    Dream houses become affordable in Chennai

    A dream home in Chennai has become a lot cheaper. Hit hard by the financial meltdown, the construction industry is trying hard to get back to brisk business through affordable housing.

    Now, the new price tags are a little over Rs nine lakh for a 450 sq ft single bedroom apartment and Rs 14 lakh for a 900 sq feet two bedroom apartment.

    "Every builder has to re-look both the pricing, the size of the apartments and who are they targetting. Then the volume can never fall down, at least for another five years," said Padam Dugar, Director, Dugar Housing Developments Pvt Ltd.

    The offer, promoters say, is a sell out. All the 240 flats on offer have been booked.

    "It's affordable. The EMIs will be around Rs 12,000 to 15,000," said a happy prospective buyer.

    Industry insiders say the price could drop further by 25 per cent if the government reduces loan rates and waives a slew of taxes that account for forty per cent of the price.

    "If the government reduces that, the cost will also come down substantially. Promoters will build lots of houses, and the common many can buy," said C Subba Reddy, from Ceebros Property Development Pvt Ltd.

    Affordable housing is becoming a priority for the construction industry to survive the economic slowdown. And for the large middleclass this could be the right time to own their dream home

    Indian IT and the Obama regime

    India — the world’s largest democracy — had monitored the presidential race in the United States — the world’s oldest democracy — very closely, an
    d with good reason. It was a historic election in many respects, and Barack Obama’s inauguration in January will mark several new beginnings.

    There is no doubt, with the economy struggling in the US and elsewhere, Mr Obama has his work cut out for him. He has often spoken of reviving America’s competitiveness, and he has repeatedly promised to “change” its course. Doing so while balancing the needs of three key stakeholders — consumers, workers and investors, both at home and abroad — will be challenging. A judicious approach in not undermining the opportunities for the 150 million working class, while balancing the expectations of more than 50% of the US households that own stocks or have stayed invested in mutual funds and the 300 million consumers will be called for.

    Why? Because so much of the economy has become truly global. There are fewer and fewer “American” or “British” or “Indian” companies now. There are more and more multi-national or global companies that happen to be based in the US or Europe or India. Consumers, suppliers, workers and investors are to be found everywhere in the world.

    Historically, American investments in global economies and corporations have spurred and sustained growth. This is not about to change easily. (An emerging economy like India imports goods worth $250 billion from the US, while it exports about $160 billion annually. It is pertinent to note that American-owned investment companies by far have the largest investments in most of the large India-based IT companies).

    We may see a demand for more protectionist US trade policies. Many industries — certainly information technology services — have long been global. As already mentioned, customers and suppliers are located all over the world. Projects are priced from a global perspective, rather than a local one, and new sources of growth emerge daily from developing economies. It has become clear: the surest path to sustainable prosperity is to be globally competitive, rather than locally subsidised.

    Restrictive practices or misjudged decisions can be counter-productive and create a global backlash for US-made products and services, apart from increasing the cost of products and services to the consumers in the US and harming their investor community.
    Several of the changes we foresee in the next four years present exceptional opportunity for the IT industry, while some may pose short-term hurdles.

    From an opportunity standpoint, the US government is likely to increase its regulation of several industries, notably financial services, healthcare and energy. In addition, the restructuring that is already taking place in these sectors will probably continue. These moves could prove to be advantageous to Indian-based professional services providers as many US companies will need help with their systems and processes to comply with more stringent governmental oversight.

    Additionally, the new administration will likely focus more on environmental issues. As such, carbon emission reduction and carbon credit trading will come to the fore. Both of these represent opportunity for Satyam, which has an established track record in green engineering and sustainability.

    US companies — like everyone else — rely very heavily on global expansion for their growth and competitiveness. A recent survey highlighted the clear benefits of globalisation to the growth of US Fortune 500 companies. Moves to restrict the worldwide flow of talent to the US could prove to be detrimental.

    From a tax standpoint, Obama’s administration may favour more redistributionist policies and increased taxes for those who rely on external markets. It would be good to look deeply at the global learning in this regard — both in developed and developing economies — before arriving at a firm go-forward plan. Today’s approach, which encourages and enables entrepreneurship and wealth creation, has always proved to be much more successful.

    I believe the President-elect recognises just how global the economy has become, and that his first priority must be to get the US economy back on track by helping companies to transform their businesses, improve productivity and enable value creation. Doing so — by synergising and harnessing the collective intent, which he has demonstrated so effectively during the campaign — will benefit investor and consumer confidence, global growth, sustainability and prosperity — not only for the US, but for the world at large.

    NYC taxi driver with MBA pastes resume in back seat

    NEW YORK: A recent graduate with a master's degree in business administration who can't find work has pasted his resume on the yellow taxi he's be

    en driving around New York City to help pay his bills.

    James Williamson earned his MBA at Philadelphia's La Salle University. Then he spent four months going to interviews while looking for work troubleshooting electronics, doing technical sales or writing advertising copies. When that didn't pan out he got his taxi license a month ago.

    The Durham, North Carolina, native says he pasted his resume in the back of his taxi as a last resort and he's hoping one of his customers might become his employer.

    He says he's received a couple of business cards and supportive comments but no job offers.

    Wednesday, December 10, 2008

    Made in India grooms are a big hit with NRIs

    MUMBAI: When Neha Shah’s parents zeroed in on a bridegroom based in India, disregarding at least three suitors based in the West, the choice took
    Marriage
    her by surprise.

    For the US-born Ms Shah, and thousands like her born to Indian parents based in the country or living overseas, the ‘arranged marriage’ drill is a familiar one. Typically, Indian parents prefer US and UK-based grooms for their daughters, convinced they are securing the future of their offspring.

    But the credit crunch and the resultant economic gloom sweeping across much of the western world is not just causing a meltdown in financial markets; India’s marriage market too is seeing a meltdown in long-held beliefs — a ripple effect of the recession in western economies.

    Single men based in India are in demand in the marriage market as the global financial crisis forces a fundamental reappraisal of one long-held notion: West is best.

    “My parents now believe that job security is much higher in India compared to that in the US, UK and Europe. The recession in the West is not only leaving people jobless, but there is also no certainty in terms of future growth,” says the 27-year-old Shah, who grew up in the US.

    A management graduate, Ms Shah agrees with her parents’ checklist for a potential groom. He should have a good, secure job and must belong to a decent family. He should be open-minded and modern in his outlook, which she thinks many
    well-educated Indian men are. But her motivations are also partly economic: she too has a better chance of getting a job in India than in the US.

    India’s economy is expected to keep growing, albeit at a slower pace of about 7%, at a time when much of the developed world, led by the US, Japan and many countries in western Europe, will suffer from rising unemployment and stagnant wage growth in a deep recession. India’s economy has expanded by 9% in the past three years.

    With salaries in India having risen many times in the past few years, young men in India can make more-or-less the same amount of money as their peers overseas.

    Moreover, a lot of the comforts previously only available abroad are now easily available in India.
    With the concept of the nuclear family having taken root in India, a young bride too needn’t be forced to stay and cope with demands of joint families anymore, says Anil Patel, a New Delhi-based businessman, who is looking for a groom for his daughter.

    Meanwhile, the Manhattan-based Shah family which has camped in India for the past two months, has finalised their daughter’s marriage to Swapan Parekh, a 34-year-old Mumbai-based executive with the Indian unit of an UK-headquartered pharmaceuticals company. The marriage is expected to take place early next year.

    The Shah family is not alone. “In the past one month, inquiries on prospective Indian grooms from Indian families based abroad have increased by at least 200%,” says Dilip Saxena, founder of Infinity Matchmaking, a ‘marriage consultant’.
    Niche firms such as Infinity had expected a slowdown in business as people put aside marriage plans during the economic downturn, but the shifting trend in matrimonial preferences has come to their rescue.

    “The craze for NRI (non-resident Indian) grooms... particularly Indians hunting for NRI grooms has significantly reduced,” Vivek Khare, senior vice-president of Jeevansathi.com, a marriage portal.

    In the past decade, India’s ‘arranged marriage’ culture has spawned several so-called matrimonial websites which make money by listing matrimonial and other advertising. These internet sites allow people to post their details online, allowing prospective partners to link up.

    Mr Saxena says, with the changing trend in the marriage market, the profiles of potential grooms posted on marriage portals have changed. Job roles are dressed up to look meaty and the companies that the eligible bachelors work for are portrayed as bastions of stability.

    In the country’s marriage bazaar, the fortunes of a potential husband are intimately linked to the state of the economy.

    The wealthy landowner in pre-industrial days, the civil services officer in the command economy and the software engineer during the technology boom have at various times been top dogs in the marriage market. The professional employed abroad has also had his day in the sun. Now, the sun may be setting in the West.

    Australia's ANZ bank to cut 800 jobs before Christmas: Reports

    SYDNEY: Australia's fourth biggest bank, ANZ, will cut a total of 800 jobs before Christmas because of the global financial crisis, reports said o

    n Saturday.

    Chief executive Mike Smith made the announcement to staff in Melbourne on Friday and most of the cuts will be from middle management, the Australian Broadcasting Corporation said. "The fact that they continue to roll out job losses so close to Christmas is completely unacceptable," said Financial Services Union spokesman Leon Carter.

    "This is simply about using the financial crisis as cover to get people to lose their jobs, save costs and maximise money for shareholders. "They continue to be a very profitable organisation," he said.

    ANZ Bank in October posted a 21 percent fall in annual net profit, its first drop in a decade, after it was hit by growing bad debts and turmoil in global financial markets. The bank, which was positioning itself as a major power in Asian banking, said net profit for the year ended September 30 stood at 3.32 billion dollars (2.15 billion US), down 21 percent from 4.18 billion a year earlier.

    Reacting to the reported job cuts, Prime Minister Kevin Rudd urged Australia's banks to maintain their employment levels. "This is a very difficult set of economic circumstances for everybody. It's very difficult for families as well," Rudd told reporters.

    "Each individual bank's circumstances is different. We would encourage and urge the banks to continue to provide maximum employment for the workforce. That's the right thing to do." Rudd said the government was doing all it could to stimulate the economy but there was no "silver bullet solution" to the current global economic crisis.

    IT slowdown? Cognizant bags $100 mn US contract

    BANGALORE: Cognizant Technology Solutions, which competes with Indian offshore biggies such as TCS, Infosys and Wipro, continues to win new
    contracts from its existing customers, including Astrazeneca and Merck, even as the industry prepares to cope with lower information technology spend in top markets of the US and Europe.

    According to sources, Cognizant has won a $50-100 million contract from one of its existing customers last month, which is among the top five American pharma companies. “This initiative involves new Oracle Fusion work, both application development and maintenance, and is described as ‘a big engagement’, with an estimated 200-400 employees working on the project that will start billing the second week of December,” said James Friedman, an analyst at Susquehanna International Group (SIG).

    The company has also won $100-million (total contract value) deals from Deutsche Telekom and Healthnet during the past few weeks.

    During the past few quarters, Cognizant has won 5-6 deals every quarter, with each contributing up to $50 million in annualised revenues. “In the past few months, Cognizant hired away a number of group managers from competitors. Some of the deal flow may be attributed to these new employees, many of whom brought clients with them,” Mr Friedman added in his report.

    Cognizant, which serves leading drugmakers such as Astrazeneca, Merck and Pfizer, could not offer specific comments about whether the company has won any new contract with one of them. However, when contacted, an Astrazeneca spokesperson said the company has recently partnered with Cognizant.

    “I can confirm that our recently announced contracts with Cognizant and Infosys did include application maintenance, but I couldn’t respond regarding itemised applications,” said Christopher Sampson, spokesperson for London-based Astrazeneca. At a time when other Indian rivals are seeking inorganic growth in Europe, Cognizant partnered with a local service provider, T-Systems, for addressing the lucrative German market.

    “For a cost of only $11m, Cognizant gained an offshore center with 1100 FTE focused on the German and European market,” Peter Schumacher, president and chief executive of Value Leadership Group told ET in an email interview.

    “Cognizant won the deal because they have the right approach for the European market. As a result the company is growing significantly faster in Europe than the top 5 Indian firms.”

    According to Gartner, none of the Indian offshore players are among the top 15 service providers in Germany in terms of market share. Cognizant partnered with T-Systems, which has a market share of 16%, ahead of rivals IBM and Accenture with 6% and 3% of the market respectively.

    “Cognizant’s industry leading revenue growth for the last five years—with a CAGR of 56.2 percent—and a revenue growth guidance of 32 percent in

    calendar 2008,” said a Cognizant spokesperson.

    Meanwhile, the company’s six of the existing financial customer including Lehman, Wachovia, Bear Stearns, HBOS and IndyMac are currently merging, which might put company’s revenues from the segment at risk. However, analysts such as Ashish R. Thadhani of US-based Gilford Securities say the company does not have high revenue exposure with such customers.

    “Direct exposure to impacted Financial Services clients is limited to 5% of total revenue with work ongoing and not likely to end abruptly,” Mr Thadhani said in his November report.

    Denmark to enter recession in 2009: Govt

    COPENHAGEN: The Danish government on Monday slashed its growth forecasts for 2008 and 2009, predicting that the economy would contract by 0.2 per

    cent in 2009 after growing 0.2 per cent this year.

    "Financial turbulence and the weak international growth outlook will along with the wavering housing market and weakening competitiveness lead to weak GDP (gross domestic product) growth in coming years," the Finance Ministry said in a statement.

    In October, the Danish government had already trimmed its growth forecast to between 0.75 and 1.0 per cent for this year from a previous estimate of 1.1 per cent growth, and to between 0.0 and 0.5 per cent in 2009 from a previous forecast of 0.5 per cent growth.

    Denmark's economy is not expected to grow before 2010, when its GDP should rise by 0.7 per cent, the Finance Ministry said Monday.

    The government also said it now expected Danish unemployment to double from this year's 1.7 per cent to 3.5 per cent in 2010.

    The country's public sector surplus would meanwhile slip from 4.4 per cent last year to 3.0 per cent this year before transforming into a slight deficit in 2009. In 2010, the deficit would widen to 1.2 per cent, the ministry said.

    Monday's dire forecasts echoed analyst reports that Denmark, which earlier this year became the first European country to enter recession, would again see its economy contract after briefly flirting with growth in the second quarter.

    "The Danish economy can not avoid being affected by the global financial crisis and the poor outlook abroad. Our economic growth is now suffering too," Finance Minister Lars Loekke Rasmussen said in the statement.

    "But fortunately, our starting point is good, and much better than in many other countries," he added.

    Fin Crisis: Too late and too little done in US

    AHMEDABAD: Its too late and too little done in the US to come out of the financial turmoil, a crisis of 240 trillion $ cannot be stemmed with bail
    out packages of 1 to 10 trillion $, Arun Kumar, professor at Jawaharlal Nehru University said here on Thursday.

    "When the US president elect Barrack Obama assumes office in January, the crisis will still be bigger," Kumar said while delivering lecture on Current Financial Turmoil and Lesson for Future at Ahmedabad Management Association today.

    "150 billion $ tax cut package for the housing sector was too little and too late to stem the collapse of a much higher magnitude," Kumar said adding "Every aspect of financial sector got sucked into the financial turmoil."

    "In last two decades the financial markets in US got deregulated, under the guidance of Alan Greenspan as he worked on assumption that markets are self stabilising, but in a recent testitmony Greenspan admitted he was wrong for 16 years," Kumar said while quoting a US leading daily.

    This deregulation led to the collapse of Lehman Brothers, Bear Stern and other troubled entitites, he added.

    "Government has intervened, crisis has slowed down, but there is crisis of confidence now amongst the banks. The financial and money markets work on certain degree of trust and confidence and this should not be shattered at any cost," he added.

    "Collapse in US was so sharp against the gradual rise because the banks were interlocked in deals. Due to deregulartion there were instruments promising much higher returns and even a marginal fall in assest pricing triggered it all," Arun Kumar said.

    US economy was thriving on borrowed funds, so post crisis countries such as Japan, China, Iceland, Ukraine and others are in deep trouble. China is finding ways to delink from dollar, after corporate profits began falling showing early signs of heading into recession, Arun Kumar said.

    Now protectionism of economy has creeped in due to lack of confidence, that too is dangeorus, he cautioned. So when the US President-elect Barrack Obama joins office he would prioritise job creation in sectors like BPO and call centres, Kumar said adding, in the past 1.5 billion job loss has been reported in US.

    So at this historic juncture a out-of-box re-architecturing is required for the $ 600 trillion financial sector, he added.

    In the backdrop of such a scenario the G-20 initiative is important and extensive coordination between the government's including Indian should be evolved to come over it, Kumar added.

    Tuesday, December 9, 2008

    Will not hand over Dawood, Memon, Masood, says Pakistan

    Pakistan today rejected India's demand to hand over three terrorists and criminals, including underworld don Dawood Ibrahim, saying that action would be taken against individuals found involved in terrorist activities under Pakistani law.

    Islamabad's response to a demarche from India seeking the handing over of the three came hours after security forces launched a crackdown on Lashker-e-Toiba, arresting suspected Mumbai attack mastermind Zakiur Rehman Lakhwi and eight other militants.

    India had made the demand in the second demarche handed over to Pakistan in the wake of last week's terror attacks in Mumbai that killed over 180 people and injured dozens more.

    Pakistan's response, handed over by Foreign Secretary Salman Bashir to Indian High Commissioner Satyabrata Pal during a meeting this evening, indicated that Islamabad would itself take action against individuals if information provided by New Delhi proved they were involved in terrorism, diplomatic sources told PTI.

    The sources said the reply stated that action would be taken against such individuals "with the ambit of Pakistani law".

    The response also stated that Pakistani authorities would act on any information provided by India on the Mumbai attacks, they said.

    The response also reiterated Pakistan's offer to conduct a joint investigation with India into the Mumbai attacks and for full cooperation, including intelligence sharing, the sources said.

    'I'd prefer a dog visiting my house' - Mumbai protests



    http://specials.rediff.com/getahead/2008/dec/05slide1-id-prefer-a-dog-visiting-my-house.htm

    Monday, December 8, 2008

    Tamil Nadu is India's best e-governed state: Study

    Fri, Dec 5 04:25 PM

    New Delhi, Dec 5 (IANS) Tamil Nadu has emerged the best e-governed state in India in 2008-09, according to the findings of a study by a leading information technology market tracker, IDC India.

    The fifth such IDC India study conducted for publishing major CyberMedia's flagship fortnightly Dataquest found that Tamil Nadu has climbed three spots over last year's ranking, to emerge as the No. 1 state in e-governance.

    Another southern Indian state, Andhra Pradesh, too climbed three spots over to reach the No. 5 spot.

    The north Indian states of Himachal Pradesh, Delhi and Haryana are placed second, third and fourth, respectively. Delhi has slipped two ranks from No. 1 last year, while Himachal Pradesh and Haryana have climbed up five and 14 places respectively, a CyberMedia press release said.

    'West Bengal, Jharkhand and Bihar make up for the worst three in terms of e-governance,' the statement said quoting the study.

    West Bengal, that has traditionally been slow to catch up on computerisation, had covered a lot of ground in the last few years but it still has much catching up to do, the study said.

    It is among the last three in terms of ranking on six of the 12 citizens parameters and seven of the 15 business parameters.

    'Some may argue that West Bengal at No. 19 cannot expect any better with a per capita allocation of Rs.13.78 on information technology (IT) - way down at No. 17 in the country,' the study said.

    'However, IT spend is not the sole criterion as proved by the best e-governed state in the country - Tamil Nadu's per capita spend at Rs.8.31 puts it at No. 20 in IT spend in the country,' the study added.

    Not unexpectedly, Bihar, a first time entrant in the list, is among the bottom three on 27 of the 27 combined parameters for citizen and business services.

    Jharkhand is among the bottom three in nine of the 12 citizen parameters and 15 out of 15 in the business parameters.

    The only three parameters where the state does not find a mention in the bottom three is agriculture, healthcare and employment exchanges.

    'E-governance has a long way to go in India. There are good projects, but there's too much duplication of good work in the government,' said Dataquest's chief editor P.K. Roy.

    'Central departments are duplicating work by building multiple citizen databases - census, voter IDs, PAN records, food and civil Supplies - and wasting thousands of crores. And yet they cannot tap onto a common view of the 'customer', the citizen,' Roy added.

    'India's federal structure also gives a great deal of autonomy to the states, so they guard their turf, and are distrustful of too much information visibility to central departments,' he said, adding: 'This makes it even more challenging to replicate good projects.'

    The results of the survey will be published in the Dec 15 issue of Dataquest, a CyberMedia statement said.

    Sunday, December 7, 2008

    Terror protests gather steam

    Support for a black ribbon protest on Bakr-Eid on Tuesday, December 9, against the Mumbai terror attack has gathered more momentum. Eminent
    Mohammad Azharuddin
    Mohammad Azharuddin, a cricketer.
    Muslims from the corporate world, cinema, theatre, media and advertising have registered their strong protest against the destruction of India’s secular values in the name of Islam.

    “We the Muslims of India condemn terror in every land, in every divisive form,” is the emphatic message. The issue has brought together Muslims across sects and factions. Several groups of imams have already come out strongly against the attacks.

    Many citizens from the minority community believe that the larger purpose behind the 26/11 strikes was to trigger communal violence. They hope the event will mark a historical moment, one that empowers ordinary Muslims and brings them freedom from being either suspect or victim.

    Mohammad Azharuddin | cricketer | The protest will send out a strong message to the world. Everyone wants to live in a safe environment, and terrorism in the name of Islam has gone on for too long. If we love each other, we can tackle any kind of calamity. Respect for one another at every step can make sure no hatred breeds among people. To that end, the unified symbolism on Bakr-Eid across the nation is a movement of sorts.

    Feroz Khan | theatre personality | The conflict is between values of ‘live and let live’ and those who want to die and kill. The young terrorist caught saw no hope in life and saw fortune in death. It’s a battle between civil society and barbaric forces that want India to erupt in violence. A shattered civil society becomes easy hunting ground for terrorists. 26/11 could have polarized the nation. To that end, the black ribbon gesture on Bakr-Eid is significant.

    Waheeda Rehman | actress | Indian Muslims are together at last. India has seen terrorism for many years, but we are together in protesting on this scale for the first time. It is easy to break a single stick, but all together, the bundle of sticks will not break. If we all think we are first human beings then Indians, and then let religion and family come in, no one can harm our nation.

    Mohammed Khan | adman | India’s Muslims are expressing complete contempt and abhorrence for the dastardly attack. The silent majority among Muslims is making itself heard. The protest is an outpouring of the community’s outrage at the crimes perpetrated in the name of Islam. It may be overdue but now the moment is upon us. Shias, sunnis, maulvis and maulanas of all sects and factions of Muslim society are speaking in one voice.

    Qari Md Mian Mazhari | journalist | The government can continue to do whatever it is doing, but we, the people, will do our bit as citizens. Mulk ki security ke liye hum kissi se samjhauta nahin karenge . The issue is not only about a community but of the nation. For national integration, the role of the dargahs is essential. Religious leaders are coming forward at the nation’s hour of need to express unified solidarity with the people.

    SM Rahman | corporate honcho | The movement is in response to the growing realization that this brand of professed Islam is not our religion. The sheer scale of the protest, cutting across all strata, shows unequivocal solidarity. In no uncertain terms, we are saying, first as Indians, then as Muslims, how reprehensible this wanton act was.

    Salim Khan | screenplay writer | The protest will strengthen ordinary Muslims who face the brunt of a terror attack’s fallout. Veteran cops such as Hemant Karkare and others have marvellously dealt with the underworld. But in Mumbai, they were attacked. The attackers didn’t just keep bombs and run away. They meant to attack humanity, face to face. They killed and destroyed. How dare these men call themselves Muslim? Islam has peace woven into its greeting, how can terrorists call themselves followers of Islam? They don’t bother with the Prophet’s words, so they have no right to call themselves Muslim. This is not our religion.

    Jaaved Jaffrey | actor | There is nothing Islamic about terrorism. Terrorists completely misrepresent Islam. What’s happening around the world is terrorism, not Islamic terrorism. In fact, the first of the Prophet’s traits that greets the reader is that he is benevolent and merciful. Our religion has to be protected from terrorists and that’s the message of the protest.

    Syed Kalbe Rushaid Rizvi | cleric | We can’t bring back the lives lost or restore grieving mothers their children after the attacks. But we can express enmity for the enemy. The black ribbon appeal is in empathy and solidarity with the grieving families of those attacked and to demonstrate our hatred for the killers. Our appeal has been received by Muslims across India’s 7 lakh and more villages, cutting across the many sects and followings. Bakr-eid will see the world’s first such protest on this scale.

    Russell Peters

    http://au.youtube.com/watch?v=24Ryj1ywoqw

    Saturday, December 6, 2008

    ICICI home loans of Rs 20 lakh and below cheaper

    December 06, 2008 15:26 IST

    Private sector lender, ICICI Bank, has reduced its interest rate for home loans of Rs 20-lakh and below to 11.5 per cent."We have revised our interest rate by 1.5 per cent from 13 per cent to 11.5 per cent," an ICICI Bank spokesperson said.This cut will, however, be applicable for only new home loans, the spokesperson said."Priority sector lending has always been one of our key focus areas and we have a differential offering for these customers. This is our pricing to promote the priority segment and offer affordable housing," he added.

    Rediffmail aggregates activity updates news feeds from social networking sites in India

    Wed, Dec 3 02:45 PM

    Mumbai, Dec 03 (ANI/ness Wire India): Rediff.com India Limited, India's leading online portal, has introduced a new aggregator service. Users can now log into their favorite social networks through Rediffmail and receive updates from their friends in one place.

    This service is currently available for Orkut, Facebook, Hi5 and Linkedin. Rediffmail users can also use this service to access their Orkut scrapbooks. Users can sign into Rediffmail through http://www.rediff.com

    Rediff.com is one of the premier worldwide online providers of news, information, communication, entertainment and shopping service. (ANI)

    Faced with shortage, Canada woos skilled Indian workers

    Wed, Dec 3 11:15 AM

    Chandigarh, Dec 3 (IANS) Here's good news for engineers, technicians and other skilled workers wanting to work abroad. Canada is trying to attract young talent from countries like India by relaxing norms for visas in this category, says a Canadian immigration expert.

    'There is an acute shortage of skilled workers in Canada and the situation will worsen in the next 5-10 years unless the government makes an effort to attract talent from a young country like India,' said Curtis Panke, director of global operations for the Ontario-based Global Placement Services.

    Pointing out that the retirement age for most occupations in Canada is 55 years, he said in the next five years, more than 20 percent of the country's engineers, doctors, professors and geologists would retire.

    'This huge void cannot be filled with domestic talent alone. If we do not attract the talent from outside, there will be a talent vacuum of up to 70 percent in the next 10 to 15 years,' Panke told IANS.

    Keeping all this in mind, he said, the Canadian government has made vital changes in its immigration policy and relaxed certain norms for a Canadian visa in the skilled worker category.

    The latest fast track processing of visa applications in the federal skilled worker category ensures a Canadian visa in a shorter period of just 6-12 months, pointed out Panke.

    The Canadian government has issued a list of 38 high-demand occupational categories, including health, finance, engineers, heavy-duty mechanics, industrial technicians, food service managers and other skilled trades.

    Panke is in Punjab to gauge the talent pool available and to conduct seminars all over the state in collaboration with the city-based World Wide Immigration Consultancy Services (WWICS), which has sent over 60,000 families and around 250,000 individuals to Canada till date.

    'There are thousands of Punjabis in Canada, who are doing extremely well in their professions and contributing to the country's economy. Comparatively, we have more applicants from this region if we compare it with other states in India,' stated Panke.

    Asked about the impact of global recession on the Canadian economy, Panke said a majority of the organisations and companies there would be unaffected in the long run.

    'There is some impact but all this is a temporary phase and will pass very soon. Moreover, there is no impact on the openings available under skilled category there and Canada is looking forward to employ skilled workers in a big way.'

    Talking about Canada's federal investor category for permanent residency in the country, Lt Col (retd) B.S. Sandhu, chief managing director of WWICS, said: 'An investor is only needed to invest Rs.5 million in some flourishing trade in Canada and can relocate there under the Canadian Investor Program.'

    The applicant, under this category, only needs to have a work experience of two years and no language proficiency test like IELTS is required, he added.

    Friday, December 5, 2008

    Satyam plans to send staff on sabbatical to trim costs

    HYDERABAD: Satyam Computer Services, the country’s fourth-largest services exporter, is taking a cue from its rival Infosys to trim costs as the g

    lobal slowdown could impact revenues.

    The company is looking at sending its employees on a sabbatical, but will take a final decision depending on the third-quarter results. Satyam has already scaled down its hiring projections for the current fiscal to around 8,000-10,000 compared to 15,000 that it had earlier projected.

    “We are looking at various options to reduce costs and sabbatical is one such option. We will be able to shift our employees to take up social activities relating to our own corporate social responsibility programmes. Employees can also look at working with NGOs during the time of sabbatical. But, they will have to compromise on their salary during sabbatical as the pay structure will be lower than what they are currently drawing,” said SV Krishnan, global head (HR), Satyam Computer Services.

    According to him, the firm will finalise a decision depending on its third-quarter result. “If the result is in line with our expectations, we may not adopt any drastic cost-cutting measures,” he said.

    Currently, Satyam employs 47,000 people in the IT services segment. Inclusive of the BPO arm, the overall headcount is around 53,000. “It is not a viable option to shift IT employees to the BPO subsidiary as it is engaged in specialised works,” said Krishnan.

    Infosys, Satyam’s peer, had issued letters to its employees saying they could opt for a one-year sabbatical to engage themselves in philanthropic activities. Infosys had said the employees would continue to draw 50% of their salary during the sabbatical.

    Though Infosys’ move coincided with the global financial meltdown and likely slowdown in the growth rate of the IT industry, the firm said that the option would be entirely voluntary for employees.

    Industry observers reckon programmes of this kind will help IT firms cut down their costs as their major market, the US, is facing recession. “Visibility from the US market is still not clear and firms are under pressure to cut costs. It has triggered IT firms to look at ways to trim costs,” said Harit Shah, analyst (IT, telecom), Angel Broking.

    At present, wage bill accounts for over 60% of Satyam's revenues. Belt-tightening measures could help the firm cushion the impact of the global economic meltdown on its profitability.

    SV Krishnan had earlier told ET that the company could take a relook at the guaranteed component of the variable pay given to its employees.

    “Employee-related expenses account for almost 55-60% of an IT firm’s total spending cost. They have tried to cut that expenses by scaling down hiring projections. Sabbatical programmes will help reduce costs further,” said Shah.
    But the challenge would be in managing utilisation rates as they will have to manage projects with existing employees. This may put additional burden on them.

    “Considering that most IT firms have a utilisation rate of about 75-80%, there is not much room left for manoeuvre. It may not be possible for firms to increase it beyond 85-90%. This, in another way, can be an indication of their order pipeline getting dried up and renewal of projects becoming difficult,” said another industry analyst.

    Consumer court rules in favour of accident victim

    Mon, Dec 1 06:52 PM

    New Delhi, Dec 1 (IANS) A Delhi court has ruled that if an insured dies due to heart attack during an accident, then insurance cover can be claimed.

    The Delhi State Consumer Disputes Redressal Commission presided by Justice J.D. Kapoor ruled: 'If any person meets with an accident, including vehicular accident, and if death occurs due to myocardial infarction consequent to coronary artery disease, precipitated during vehicular accident, it amounts to accidental death and entitles the insured for accidental claim benefit.'

    The court's intervention came while dealing with a case of Jagdish Lal, who was covered under the Life Insurance Corporation of India (LIC) policy for a sum of Rs.50,000.

    As per the policy, the insured was entitled for double the sum assured and not exceeding Rs.500,000 in case of death due to accident.

    The insured met with a vehicular accident on Jan 10, 2004, and died.

    LIC took the plea that the accident was caused due to his own negligence as during the accident, he first hit a rickshaw and then hit a pole.

    Rejecting this plea, Justice Kapoor said that it is an accident and asked the insurance company to compensate Rs.50,000 as the insurance cover along with Rs.10,000 for mental agony and harassment and Rs.3,000 as cost of litigation.

    Explaining the meaning of accident, Justice Kapoor said that 'accident means an unfortunate event, especially one causing physical harm or damage, brought about unfortunately'.

    'Even if we accept the version of the rickshaw puller, which even otherwise neither is fortified by any further evidence as any person who suffers injury due to some vehicular accident will lodge a report with the police and such a report cannot take the accuser from outside the ambit of accident.'

    Ex-Pak Armymen trained 26/11 terrorists: NYT


    New York: Former Pakistani army officials trained the terrorists who went on rampage last week in Mumbai, The New York Times said on Wednesday quoting unnamed Pentagon officials.

    "A former Defense Department official said on Wednesday that American intelligence agencies had determined that former officers from Pakistan's Army and its powerful Inter-Services Intelligence agency helped train the Mumbai attackers," The New York Times said in its news report from Washington.

    "But the official, who spoke on condition of anonymity, said that no specific links had been uncovered yet between the terrorists and Pakistani government," it said, without providing any further details.

    Pakistan has so far refuted Indian allegations, supported by the US, of having harbored these terrorists, who killed 183 people, several of whom were foreign nationals, and claimed that they are non-state actors.

    The revelations by a former Defence Department official comes at a time when India has said that it has strong evidence and intelligence information that indicates the Mumbai attackers and their trainers came from Pakistan. It has also asked Pakistan to arrest and send to it 20 people wanted in India for terrorist activities. Pakistan has said that it would not extradite terror suspects.

    US Secretary of State Condoleezza Rice, who was in New Delhi Wednesday to demonstrate American support to India, urged Pakistan to take on terrorists within its borders.

    "We believe Pakistan has a central role to play in this, to make certain that these terrorists cannot continue to operate and operate in this fashion," Rice said in New Delhi.

    Thursday, December 4, 2008

    Why the dollar is getting stronger?

    3 Dec, 2008, 0400 hrs IST, BusinessWeek

    Investors have every reason to hate the US dollar. The rising deficit. The deteriorating economy. The plunging stock and bond markets. But rather
    BSE

    than getting hammered by the financial crisis, the greenback is soaring. Since July the dollar is up 19% against the euro and 24% against the British pound.

    Whether it’s a boon or a burden depends on perspective. US companies with huge exports aren’t thrilled, since a strong dollar hurts sales even as US consumers travelling to Paris will find their cash buys more than before.

    What’s behind the dollar’s surprising strength? First, there’s the fear factor. During tough economic times, investors often flee foreign currencies and other risky assets for safe havens like the US dollar. The euro, the pound, and emerging-market currencies may also have been inflated after a six-year run-up.

    A basket of foreign currencies rose 25% between 2002 and mid-2008 versus the dollar. The euro jumped 45%. But earlier this year some investors started betting the bubbles would burst, driving down the price of the currencies and conversely benefiting the dollar.

    After its recent strong performance, the dollar is currently trading at about $1.28 to the euro, what some figure is a fair price based on the current buying power of consumers.

    “When the stresses start to abate, people will be forced to think about whether they want to invest in the US,” says Thomas Stolper, an economist at Goldman Sachs. But if the global economy continues to sour, the dollar may rise even more.

    The European currency markets may also feel the stress from the global slowdown. The euro zone lacks a strong central government that can adjust rapidly to crisis. For example, the ECB has been criticised for not recognising the severity of the crisis early enough: It raised interest rates in July before cutting them in October and November.

    Says Stephen Jen, an economist at Morgan Stanley: “The dollar’s rise is genuine and more deserving than many sceptics have in mind.”

    The 'mouse' turns 40!

    Mon, Dec 1 10:05 PM

    London, Dec 1 (ANI): One computer device could be called as being most 'in touch' with humans -the mouse, which celebrates it's 40th birth anniversary today.

    The first computer mouse, developed 4 decades ago, was a little wooden box with a single red button on top and a wire hanging from the back, because of which it was likened to a rodent.

    And while computers have transformed from big white boxes to cool flat screens and laptops, the mouse has, more or less, stayed the same.

    But, its designer, Douglas Engelbart, is not a rich man giving orders in a huge IT firm.

    The 83-year-old American, who worked on the mouse at California's Stanford Research Institute, never got any royalties because the patent expired before it became a must-have.

    It was in 1981 that Xerox included a mouse with their Star computer system, followed by Apple, which offered one with their Macintosh system, a few years later.

    And then Microsoft made it the standard device for navigating their Windows system.

    With more and more innovations- like a second, third and fifth button- the mouse today has bid adieu to the rubber trackball to be replaced by more accurate infra-red technology.

    Now many of the devices are cordless too, doing away with the reason they were called a mouse in the first place.

    However, Apple's innovative touchscreen technology on its iPhone and iPod Touch gadgets might just send the mouse into oblivion.

    "I very much doubt that we'll be using the mouse in 40 years' time," the Sun quoted Steve Prentice, an analyst at Gartner Research, as saying. (ANI)

    Wednesday, December 3, 2008

    Kerala CM winces, says sorry to commando's family

    Thiruvananthapuram: Wilting under pressure from the opposition, Kerala Chief Minister V S Achuthanandan on Wednesday apologised for his remarks against the family of Major Sandeep Unnikrishnan, who was killed fighting terrorists in Mumbai.

    "I am sad that Sandeep's family was hurt by my remark. I apologise for that," Achuthanandan said at a press conference here.

    Earlier in the day, Achuthanandan had denied having made derogatory remarks against Unnikrishnan's family and had accused the media of misinterpreting his statement.

    "The media and opposition parties have twisted my statement,” Achuthanandan said in the state assembly.

    “I have not made the dog remark. People who made it can swallow it,” he added.

    A day after Unnikrishnan's grieving father chased away Achuthanandan from his Bangalore house, the chief minister told a TV channel in Malayalam: "Is there any rule that both the Karnataka and Kerala chief ministers should go together to his home? If not for Sandeep's house, not even a dog would have gone there."

    Unnikrishnan, from the elite National Security Guard (NSG), was killed in fierce gun battles with terrorists who seized the Taj hotel in Mumbai in a terror drama that left 183 people dead.

    Winding up his speech in the assembly, the chief minister said he was sad that the people of Kerala had been misled.

    This led to uproarious scenes in the assembly, with opposition members shouting slogans against the chief minister and demanding his resignation. Speaker K. Radhakrishnan ended the day's session amidst the chaos.

    After leaving the house, Opposition leader Oommen Chandy told mediapersons that Achuthanandan had turned senile and must apologise for his remarks against Unnikrishnan's family before resigning.

    Achuthanandan later called a press conference and apologised for his earlier remarks. However, he accused Chandy of having misquoted him.

    "Oommen Chandy twisted what I said in the floor of the assembly. I am here to clarify that," the chief minister said.

    Despite a volley of questions, he stormed out of the room after making his statement.

    On Tuesday, CPI-M general secretary Prakash Karat had described Achuthanandan's remark against Unnikrishnan's family as "regrettable" - a view that was echoed by several Communist politicians.

    "Certain remarks made by Achuthanandan are regrettable," Karat said in a brief statement issued in Rajasthan where he is campaigning for assembly elections due Thursday.

    Communist Party of India (CPI) general secretary A.B. Bardhan made it clear that the chief minister should not have said what he said.

    "Politicians should avoid such controversies. It proves that age is a factor in politics too," T J Chandrachoodan of the Revolutionary Socialist Party (RSP) told IANS about the 85-year-old Achuthanandan.

    Forward Bloc national secretary G. Devarajan also called it an "old man's response".

    40 sacked for fudging travel bills: Satyam

    Tuesday, 02 December , 2008, 11:14

    40 sacked for fudging travel bills: Satyam

    Hyderabad: Close on the heels of giving pink slips to a few hundred of its associates, Satyam Computer Services has sacked 40 employees on the allegations that they fudged travel bills.

    “We take a strong view on this issue. We reimburse employees’ travel costs as they go on trips and relocate. When they are not using the bookings done at the company offices, they submit bills given by the service providers,” a Satyam spokesperson said.


    “In this case, we found that the bills were fudged over a period of three months,” the spokesperson added.

    The idea is to send a strong message to the staff on this issue, keeping in mind the increasing travel costs.

    In the quarter ended September 30, 2008, the company spent $28.70 million (4.4 per cent of the revenues) on travel expenses as against $26.30 million in the same quarter last year, a growth of about 9 per cent.

    Tuesday, December 2, 2008

    Kerala CM not sorry for insulting slain NSG major

    New Delhi: A day after Kerala Chief Minister VS Achuthanandan insulted the family of martyred NSG Commando Sandeep Unnikrishnan, he refused to apologise for the denigrating remark.

    “No, no,” is all he said when journalists confronted him with the question.

    Achuthanandan on Monday heaped scorn on the family of NSG Major Sandeep Unnikrishnan – slain in the Mumbai terror attack during commando operations - after smarting under the snub from the father of the angry officer.

    "If it had not been (Major) Sandeep's house, not even a dog would have glanced that way,” he said when turned away at the door by Unnikrishnan’s father.

    The octogenarian CPI-M leader was turned away from the Bangalore home of Sandeep, a Keralite, on Sunday for what K Unnikrishnan perceived as Kerala government ignoring his son's supreme sacrifice.

    'But for slain major, not even a dog will visit his house'

    December 01, 2008 20:39 IST
    Last Updated: December 01, 2008 20:42 IST

    'If it had not been (Major) Sandeep's house, not even a dog would have glanced that way.'

    This was how Kerala Chief Minister V S Achuthanandan heaped scorn on Monday on the family of NSG Major Sandeep Unnikrishnan, who was killed in the Mumbai terror attack during commando operations, igniting a controversy after smarting under the snub from the father of the angry officer when he went to Bangalore to offer his condolences.

    The octogenarian Communist Party of India-Marxist leader was turned away from the Bangalore home of Sandeep, a Keralite, on Sunday for what K Unnikrishnan perceived as Kerala government ignoring his son's supreme sacrifice by not making a condolence call in time.

    'He (Sandeep's father) says that the Kerala chief minister did not come whereas the Karnataka chief minister came in the morning itself, and that Kerala has ignored him.

    He got all worked up over this,' Achuthanandan told television channel Times Now in Thiruvananthapuram.

    The chief minister asked, 'Is there a rule that the chief ministers of Kerala and Karnataka should be there at the same time?'

    After a pause, the chief minister went on to say, 'If it had not been Sandeep's house, not even a dog would have glanced that way.'

    'It is Sandeep's family and that is why we went. A soldier's father should have had the sense to understand that,' the chief minister said.

    But Sandeep's father said politicians were under 'compulsions and duress' to express solidarity with the terror victims in an apparent attempt to get political mileage and 'I did not want to respond to them.'

    Maran brothers patch up with Karunanidhi

    A huge political development in Tamil Nadu has taken everyone by surprise. The estranged Maran brothers have finally patched up with the family of their granduncle DMK chief M Karunanidhi.

    DMK president and Tamil Nadu Chief Minister M Karunanidhi, accompanied by his family members, on Monday met his estranged grand nephews Kalanidhi Maran and his brother Dayanidhi in Chennai.

    The Marans had fallen out with Karunanidhi's elder son Azhagiri after they had published a controversial survey on the DMK chief's successor.

    Soon after, Dayamidhi Maran had to resign as the Union Telecom Minister in May last year.

    On Monday, they finally made peace. But the DMK chief says he has not though about Dayanidhi Maran's re-induction into the Union Cabinet.

    The family members of Karunanidhi, including his second son M K Azhagiri, who was reportedly opposed to any patch-up efforts with Maran brothers, were present in the meeting at which the Marans had explained their position.

    Karunanidhi later told reporters that the initiative for the meeting came from Azhagiri, the Madurai-based elder son and his brother and Local Administration Minister M K Stalin.

    During the past one year, both the families were locked in a bitter fight after the death of Murasoli Maran. The differences came to the surface when Maran Brothers owned Dinakaran, a Tamil newspaper, published a survey, projecting Stalin as a political successor to Azhagiri. (With PTI inputs)

    India among 20 most dangerous places to visit

    Sun, Nov 30 04:41 PM

    London, Nov 30 (PTI) The three-day long terror strike in its financial capital Mumbai has pushed India to be among the 20 most dangerous places to visit on Earth, a British report has said. Listing India among the world's 20 most dangerous places after the Mumbai terror strike that claimed close to 200 lives, UK daily The Telegraph said in an online report noted that the British government was currently advising against all, but essential, travel to Mumbai.

    India has been listed along side places like Pakistan, Iraq, Afghanistan, Israel and the Occupied Palestinian Territories, Mexico, Thailand and South Africa in this list. Chechnya, Jamaica, Sudan, Colombia, Haiti, Eritrea, Democratic Republic of Congo, Liberia, Burundi, Nigeria, Zimbabwe and Lebanon have also been named among the 20 "most dangerous places to visit on Earth.

    " Writing on India, the report said, "Although the Foreign Office is currently advising against all but essential travel to Mumbai, most of the rest of the country is considered safe. Exceptions include the rural areas of Jammu, Kashmir (other than Ladakh) and the border area with Pakistan.

    There remains a high threat from terrorism throughout India." Meanwhile, pointing out that there is a high threat of terrorism and sectarian violence throughout Pakistan, The Telegraph said, ".

    There are regular suicide bombings and attacks on positions of authority and locations frequented by foreign nationals in September this year a major explosion destroyed the Marriott Hotel in Islamabad, killing more than 50 people and injuring more than 250." PTI.

    Mumbaikars speak up against terror

    Hundreds gather at Gateway to pay tributes.

    People lit candles, paid floral tributes and spoke their feelings in as many words through the placards they were holding.

    Manu P. Toms

    Mumbai, Nov 30 “When will this carnage stop? We want an answer” “What is the Government’s action plan?” “Mr Politician, do you think this is a small thing?” were some of the placards held by the citizens of Mumbai who gathered at the Gateway of India on Sunday morning.

    The venue in front of the terror-ravaged Taj Mahal Hotel, which witnessed the anxious wait by the media and public while the encounter and rescue operations were going on, turned out to be a platform for the residents of Mumbai to demonstrate their sympathy, anger, frustration and national solidarity.
    Tribute to the dead

    They protested against the security lapses that led to the terrorists’ infiltration, they vented their frustration against the lack of political will to combat terror, they paid homage to the commandos and police who laid down their lives, and they paid tributes to all who lost their lives to terror.

    Hundreds gathered at the Gate Way of India and Marine Drive in white clothes and with black band on their right arm. They lit candles, paid floral tributes and spoke their feelings in as many words through the placards they were holding. “We organised among ourselves through phone calls and SMS,” said Mr Amit Jain, a 20-year old Colaba resident.

    “I have been living here for 35 years. Taj is like second home for us. I had breakfast here on the day of terror attack. I know every waiter here,” said Mr Jagdeep Saxena, another local resident. His business associate, the London-based Sir Gulam Noon was trapped inside the Taj, but was lucky to escape the tragedy.

    Not only the residents in the immediate neighbourhood who gathered in Colaba and Marine Drive (where The Trident-Oberoi stands), but also people from far-flung suburbs including Borivli and Thane came to South Mumbai on Sunday to pay homage to the terror-victims. “I came on my own, thinking if they would allow I would light a candle. I did,” said Ms Vijayalaxmi who came from Thane.
    Brickbats to lapses

    Public put up questions through placards which read – “When will we wake up?” and advised the political class “Please do not politicise this”. “Mumbai - Mighty Undefeated Mumbaikars Being brave Against Intolerance”, proclaimed one poster. Another placard seemed to have found immediate resonance in the corridors of power – “Send back home the Home Minister”.

    Monday, December 1, 2008

    Exports dip 12%, imports up 10% in Oct

    Exports, imports, jobsReeling under the impact of global slowdown, India's exports declined by 12.1 per cent in October this fiscal causing concerns of job losses in export-oriented manufacturing units.

    Exports dropped to $12.82 billion in October from $14.58 billion a year ago.

    However, imports grew by 10.6 per cent to $23.36 billion in October compared to $21.12 billion in the same month last year.

    Concerns have been raised over large scale job losses in several export-oriented industries like textile, handicraft and gems and jewellery

    Slovenian Proverb

    "Speak the truth, but leave immediately after."

    Editorial: A bundle of contradictions

    Business Standard / New Delhi November 30, 2008, 0:12 IST

    Most politicians are a combination of idealism, deviousness and cold-blooded calculation. So why was Vishwanath Pratap Singh, who became prime minister for 11 months in 1989-90 and who died last week at 77, different? The answer is that he had more in him of each of those elements, making the contradictions in him more pronounced even as he talked of “managing contradictions” in society, and engineering the right “collectivities”.

    He became chief minister of Uttar Pradesh in 1980, when such appointments were decided by Sanjay Gandhi. He lived that down with a remarkable sequence of events two years later, when he launched a determined, target-driven assault on dacoits, ended up killing a raft of innocents as policemen chased numbers, and then quit in a show of morality without showing remorse for what he had unleashed. In a curious play of media-driven celebrity-hood that was to repeat itself, his reputation was established.

    So when Rajiv Gandhi won his landslide electoral victory at the end of 1984, he turned to Mr Singh as his finance minister. The lieutenant decided early on that his naïve boss could be upstaged—and set about that task with a typical combination of idealism, target orientation and deviousness, plus of course cold-bloodedness. He launched tax reform, lowering the peak income tax rate from 69 per cent to 50 per cent in his first Budget, and then launched a "raid raj" as he went after transgressing businessmen (of whom there was no shortage, given the laws on the books), arrested even a respected octogenarian like SL Kirloskar, and hogged the headlines. He also launched the most determined assault before or since on Reliance Industries, bringing Dhirubhai Ambani's enterprise to its knees by applying a financial squeeze. His image as a lion-tamer had been built, but it was whispered into Mr Gandhi’s ear that his finance minister was inquiring into the financial affairs of not just his friends (the Bachchan family among them) but Mr Gandhi’s too. Mr Singh found himself shifted from finance to defence, but he released a bombshell: money had been made on a defence deal. He never disclosed which, but when the Bofors scandal broke weeks later, in a typical act of contrariness he denied that that was what he was talking about. Soon he walked out of the government and Parliament, launched the Jan Morcha, won a by-election and fought the Congress in the 1989 general elections—dubbing the original Mr Clean as an agent of Bofors and emerging as Mr Super-Clean himself (he had, after all, gifted his land during Vinoba Bhave's bhoodan movement). He insisted right through that he did not want to be prime minister, declaring that he would be a disastrous PM, but was happy to be sworn in after the elections and soon proved the disaster that he had said he would be.

    He survived on support from the BJP, which by then had launched its campaign on Ram Janmabhoomi. To sidetrack growing communal tension, he pulled out the decade-old Mandal Commission report on Other Backward Classes and announced 27 per cent reservation for OBCs. An almighty protest erupted, students in Delhi burnt themselves on the streets, the BJP withdrew support after Mr Advani was arrested in Bihar and his rath yatra stopped, and that was the end of Mr Singh’s government. However, the 27 per cent reservation for OBCs is now a settled fact of life, as VP Singh's permanent legacy to the country.

    Mr Singh took up the odd cause after that, but did not try to revive his political career, spending time on his twin leisure pursuits—painting and poetry, both of forgettable quality. He fought cancer for a decade, and succumbed at a time when the passions that he aroused in the eventful 1980s have mostly been forgotten. Still, VP Singh deserves his niche in contemporary Indian history.

    Terrorists used Google Earth

    November 30, 2008 12:42 IST

    Slowly but surely pieces of the jigsaw puzzle of the conspiracy behind Mumbai terror attacks are falling into place.

    In a first in terror strikes in the country, all the 10 terrorists involved in the Mumbai attack got familiar with the terrain of the city by using the Google Earth service, according to sources in the Maharashtra home ministry.

    The 10 terrorists left Karachi in a boat around one week back. After arriving on the Indian coast near Porbandar in Gujarat, they raised white flag on their boat and anchored it outside Porbandar.

    The occupants of a fishing trawler in the area saw the white flag and decided to approach the boat to find out whether the men needed any help.

    But as they approached the boat, two or three terrorists, in the garb of asking for help, entered the trawler and killed three of its four-member crew. Then the terrorists shifted their arms, ammunition and other equipment to the fishing trawler and forced the remaining member of the crew to sail the trawler in Mumbai's direction.

    After coming within four nautical miles of Mumbai, they killed the lone crew member and shifted their arms and ammunition to two dingy boats and landed on the coast near Koliwada. The abandoned fishing trawler � Kuber - was subsequently ceased by the Coast Guard.

    From the communication intercept made by intelligence agencies during the operation, satellite phone records recovered from Kuber and revelations made by arrested terrorist Mohammed Ajmal Kasam (21), a resident of the Faridkot district in Punjab province of Pakistan, it is clear that these terrorists have a Pakistani connection.

    "However, we have to ascertain whether their operation had any sanction from the Pakistani establishment, what was the involvement of the ISI, which group of Islamic militants these terrorists belonged to, and whether underworld don Dawood Ibrahim [Images] financed this attack," the sources said.

    They added that for carrying out such an operation, one needed to go for a rigorous commando training of two years. "The skills shown by these terrorists were almost comparable to that of the NSG," a source said, adding, "Such kind of training can only be provided by a body like the ISI."

    Kasam, along with Abu Ismaili Khan, was involved in the attack on the CST station, where almost 50 people died. Abu got killed in the encounter with the police at Marine Drive [Images].

    All the terrorists were in the age group of 19-21 and they were carrying the ID cards showing them as the students of different colleges in various cities across the country.

    So far, the police have recovered 10 AK-56 rifles, automatic pistols, unspecified numbers of hand grenades and two bombs with 8 kg of explosives. Besides, Rs 6,200 in Indian currency was recovered from the terrorists.