Indian corporates love to lament that they are victims of a corrupt system. They say the licence raj ensures that a bribe is the only way for getting business done in the country and if they are caught, they are prosecuted while the officials who connived with them get protected by the power of the State.A new survey by Ernst & Young’s Fraud Investigation & Dispute Services team finds shows that nearly half of the 250-odd respondents said that they had lost business because of their competitors’ unethical conduct. The top three reasons cited were weak law enforcement, numerous government ‘touch points’, and a complicated tax and licensing system, and while 75 per cent of the respondents say that they favour self-reporting of corruption, many hesitate because of a fear of backlash or victimisation. In short, their hands are tied.But a look through some of the finer points in the report reveals a need for India Inc to introspect. When the surveyors asked respondents for instances where their organisations engaged in unethical conduct purely to boost its reported profits (through advancing the reporting of revenues, under-reporting of costs, or even forcing clients to buy stock earlier than they normally would to meet short term sales targets), 60 per cent of them say they had seen at least one of the above. Contrast that with a global survey by EY that pegged similar practices at 26 per cent in rapid growth economies to get an idea of the depth of the infection. With 77 per cent of the respondents arguing that the Managing Director had to take responsibility to ensure compliance, such practices simply portray the tone at the top.Corruption at times could become a differentiating advantage to grab business, says Arpinder Singh, partner at EY who authored the report. “If the demand is from the government, the supply side is met by the private sector,” he explainsArpinder says there are several cases where investors have bargained hard for a lower price due to irregular practices in certain parts of the business they are looking to acquire The message rings loud. Come clean, or the consequences could be severe.abraham(dot)mathews(at)abp(dot)inmatabrahamc(at)gmail(dot)com (at)ebbruz
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Energy major Reliance Industries and state-run exploration firm Oil and Natural Gas have signed an initial agreement to consider sharing Reliance's offshore infrastructure at the KG basin, off India's east coast.Reliance and ONGC will conduct a joint study over the next nine months to work out a formal agreement and firm up commercial terms, the two companies said late on Saturday.Reliance, controlled by billionaire Mukesh Ambani, operates India's largest offshore gas field but has struggled with a slump in gas production over the past two years. It is estimated to have spent close to $8 billion to develop its blocks in the Krishna Godavari (KG) basin.ONGC, which has also struggled to maintain production from its aging wells off India's west coast, hopes to produce from six to nine million standard cubic metres per day (mscmd) of gas by 2017 from its offshore east coast blocks, adjacent to Reliance's blocks there.The agreement will minimise ONGC's initial capital expenditure and help in early monetisation of its deep water fields, ONGC Chairman Sudhir Vasudeva said in a statement.(Reuters)
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Why should a cricketer not cheat, particularly when the most visible entities, individuals and corporations, skate on grey and sometimes positively black areas? Then there is the comment: ‘How greedy can one get?’ Is a desire for ‘more’ a bad thing? Who is to define the difference between ‘need’ and ‘greed’? Should one not be free to define this? And are there limits or boundaries that we must ‘respect’ as individuals living in a society? Isn’t our society built on pushing boundaries, which is the cornerstone of human endeavours?Is this chase for the more, higher, better, not embedded in the educational process, conversations between parents and children, and peer exchanges at hangouts? How to avoid taxes, give and receive kickbacks, bend rules? Are not our heroes those who recognise no barriers — physical, social, economic or moral?Are not these old questions that erupt in our midst with amazing regularity? And challenge us to find answers not only to answer the questioner, but also the sacred places in our beings, where questions shelter? We hear two languages — of doing practical functions, and the other of being, a recognition of where we stand, and how? Often, these point in different directions.Studying at a British government recognised school used to be a source of valuable employment. The Depression years had sealed this perception. School, eligibility and employment became an inseparable amalgam.Schools are places that hear echoes of young voice; where this cauldron is stirred, of aspirations and lived truisms. When many gather and interact, cultures grow. But the dominant culture can be very strong and cannot be denied easily.The accent on employability that one hears from students in the case study is pernicious. Their voices echo the truth that examinations seem to determine worthiness. But with an inclusive global perspective, worthiness cannot be left to the mercy of high-stakes examinations. Equipping children for life requires attention to the fuzzy zone of attitudes, feelings and individual effort. The challenge is as much how to value diversity as to coexist intelligently and sensitively. Adult voices are often timorous, weak and do not reflect life choices. For far too long have adults spoken one thing and done another. Society wants security for its young but has not cared about the how.Talking cricket, here is an anecdote. Garfield Sobers, fielding in first slip, took a low catch off Nari Contractor’s bat. There were loud appeals, and the umpire gave out. But Sobers signalled ‘not out’; that the ball had touched the ground. The match continued. Only Sobers knew! But it was important for him to be fair, decent, and to strive hard, truthfully. Sir Garfield Sobers is not only recognised as a specially gifted cricketer but also as a human being who played fair. Is such a thing conceivable in today’s cricket? Has the space for truth and decency vanished with the bright colours, glitz, prizes, money and advertisement sponsorships? Is it surprising that the young are internalising abandonment to the marketplace where success equals money?The younger generation unerringly catches the discord between uttered words and lived actions. Adults quiver and wonder what to point towards — Sobers saying not out? Gandhi and Mandela saying non-violence? Or the glitzy, glass-walled offices, shiny cars and success? Money, a lot of it, as soon as possible?The ends-and-means discourse has always been acute. Possibly, we don’t speak to our children enough. Possibly, the language of success is louder, clearer and more definite. One may ask, as Janardhan David does in the case: do we care enough for the new generations? Or, should we listen to Chief Seattle’s more disturbing words: ‘He walks on the graves of his forefathers and does not care! He tramples on the rights of his unborn children and he does not care!’? The author is director-secretary, The Chennai Education Centre, KFI, Pathashaala & Outreach. He is a former principal of The School KFI(This story was published in BW | Businessworld Issue Dated 12-08-2013)
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Madras High Court on 26 July' 2013 directed CBI to conduct a probe into appointments made in the prestigious Indian Institute of Technology-Madras between 1995 and 2000 for its correctness and legality. The court further directed the agency to prosecute the persons responsible, if it was found that any case of illegality had been committed. Justice S Nagamuth gave the direction on a batch of petitions from W B Vasantha and others, seeking to quash the selection for certain teaching positions by an advertisement issued in 1995 and to further direct the Chairman and Board of Directors and the IIT(M) Director to select her as Associate Professor in a duly constituted selection committee following the reservation for OBC. The judge said the petitioner should be treated as having been appointed as Associate Professor from July 27, 1995 and as a Professor from December 18, 1996. He said the pay and allowances for Vasantha from July 27, 1995 as Associate Professor till December 17, 1996 should be calculated notionally for fixing her future salary. But for this period she would not be entitled for back wages. For the period commencing from December 18, 1996, pay and allowance of the petitioner should be notionally calculated for the post of professor as of date for purpose of fixing her future salary, he said. However, on such fixation of salary for the post of Professor from December 18, 1996 till today, she should not be entitled for back wages. For the period between Dec 18, 1996 to till date, she should be given pay and allowances equivalent to the post of Associate Professor and she would be paid the differential amount, the judge said. Vasantha, who is from the OBC community contended the selection in 1995 was 'arbitrary, illegal and discriminatory,' since reservation for OBC was not followed despite the Apex Court's rulings. She said her candidature was ignored despite possessing required qualifications and experience, while her juniors were granted promotions at each and every stage.(PTI)
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With an aim of fastracking infrastructure development, the Prime Minister's Office has set deadlines for steps to implement key projects covering sectors like railways, highways and power.The deadlines were earmarked at the first meeting of the steering group appointed by Prime Minister Manmohan Singh to accelerate infrastructure investment."The progress on the intermediate steps will be monitored on a regular basis. The deadlines will ensure that ministries /departments are clear about not just the overall deadline but also all the intermediate steps that need to be completed so that there are no slippages," a PMO statement said.The Principal Secretary to Prime Minister has directed all ministries/departments to nominate a nodal officer each, of the rank of a Joint Secretary or above, who will report on a weekly basis on the progress of their department's projects.Contracts for the construction of 17 identified projects will be awarded between September 2013 and March 2014.Projects which are to be awarded in 2014 include Mumbai Rail Corridor, Navi Mumbai Airport, Loco Project, Delhi-Meerut Expressway, Mumbai-Vadodra Expressway and UMPPs Cheyyar (TN), Bedabahal (Odisha).Those to be awarded in 2013 include Eastern Peripheral Expressway, Eastern Region transmission strengthening VI and VII, Southern system strengthening for import of power from Eastern region.As per the statement, Transmission system from Kudgi TPS (3x800 MW), Transmission system for connectivity of NCC power project and Baira Siul HEP Sarna D/C line too would be awarded in the remaining months of 2013.With regard to the Mumbai Elevated Rail Corridor Project, it was decided in the meeting that the issue of whether the RFQ will be reissued is to be resolved by Railways within a week.Railways will also provide exact timelines on completion of the Khurja-Kanpur, Kanpur-Mughalsarai and Mughalsarai- Sonnagar stretches.Regarding the Ludhiana-Dadri stretch for which funding has yet to be fully tied up, the PMO said the Steering Group will review the matter in four weeks, after the committee on financing projects in Railways completes its work.In the meeting it was also decided that Power Ministry will try to award 13 identified transmission projects as per the agreed timelines.The PMO statement further said that in addition to Navi Mumbai, the Ministry of Civil Aviation will make efforts to move ahead on Goa (Mopa) airport as well.(PTI)
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The rupee and bonds opened stronger on Friday, 26 July following comments from Chief Economic Adviser Raghuram Rajan, but traders will now await the auction of Rs 15,000 crore worth of bonds for further direction.Rajan said all options were being considered to fund the country's record-high current account deficit. He said policy measures were geared to stabilise a weak rupee in a way that only does "minimal damage" to growth. Rajan called for a clear distinction between the need to steady the rupee and the way forward for the Reserve Bank of India's monetary policy, in an interview to a business news channel. The RBI has taken slew of measures recently in its efforts to protect the rupee by making cash conditions tighter for lenders including by lifting short-term rates. The lead adviser to the finance ministry also said there was no intention to fix the rupee at a particular level. The Indian rupee had hit a record low of 61.21 to the dollar on 8 July.Also Read: Bonds Gain Most In Three Years; Friday's Debt Sale EyedTraders said gains in the euro and other Asian currencies also helped the rupee with sentiment having changed after the recent central bank measures. At 9:06 a.m., the partially convertible rupee was trading at 58.85/86 per dollar compared to its Thursday's close of 59.11/12.The benchmark 10-year bond yield was down 6 basis points at 8.13 per cent. (Reuters)
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The rupee strengthened to a five-week high on 25 July' 2013 as the central bank's measures to drain liquidity started to show impact, although demand for the greenback from importers towards late trade meant the unit closed just marginally stronger. The rupee has now gained for a second session following the Reserve Bank of India's additional cash draining measures on Tuesday, after its initial steps on July 15 to defend the rupee had failed to have much of an impact. The RBI also paid high yields in its 52 billion rupees sale of cash management bills on Thursday, which followed a 120 billion rupees sale of treasury bills on Wednesday, showing the central bank's commitment to drain cash. "The measures are finally starting to have some impact but how long and at what levels will the rupee stabilise is the question. We need to see where INR heads in the coming week," said Paresh Nayar, head of fixed income and foreign exchange trading at First Rand Bank. "I won't be surprised if various support levels right from 58.80 down towards 58.20 are taken out. There could be some more announcements in store, which could be supportive of rupee, possibly a USD bond sale, in what shape I don't know," he added. The partially convertible rupee closed at 59.11/12 per dollar compared with 59.13/14 on Wednesday. The unit rose as high as 58.76, its strongest since June 19. Traders said good receiving was seen in the onshore forwards with the one-year rate, which climbed to a 15-year high of 519.25 points, falling sharply to 480 points. The rupee was also lifted by good dollar sales from corporates, particularly Essar Oil, which traders said was tied to an external commercial borrowing, and a large engineering firm. Foreign banks were also spotted selling dollars, dealers said. However, demand from importers, particularly oil refiners, to meet month-end import commitments pulled the rupee off highs. In the offshore non-deliverable forwards, the one-month contract was at 59.56 while the three-month was at 60.40. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 59.10 with a total traded volume of $3.2 billion.(Reuters)
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Swiss cement maker Holcim said on Wednesday, 24 July it would increase its stake in Ambuja Cements Ltd as part of a restructuring of its operations in India.Holcim will increase its shareholding in Ambuja to 61.39 per cent from its current stake of just over 50 per cent, the Zurich-based firm said in a statement.Ambuja will in turn acquire Holcim's 50.01 per cent stake in ACC Ltd. Both Ambuja and ACC will continue to operate as separate entities."The transaction is expected to be neutral on Holcim's earnings per share in the first full year following the completion of the transaction and accretive thereafter", said Chief Executive Bernard Fontana.(Reuters)
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The rupee posted its biggest single-day gain in nearly a month on 24 July' 2013 as the Reserve Bank of India's renewed efforts to shore up the currency by tightening cash conditions began to yield results. The RBI took new steps on 23 July' 2013 to support the rupee, including making it even harder for lenders to access funds with measures such as lowering the amount banks can borrow under its daily liquidity window. The efforts signal the RBI will stay the course with its defence of the currency despite the risks to economic growth. "I think these measures will stay in place for at least three to four months. These are not temporary," said Param Sarma, chief executive at NSP Forex. "These steps will only eliminate volatility from the market but for real appreciation bias to set in we need real flows, which can come in through an overseas bond sale. The rupee will hold between 58.50-60 band as long as these measures stay,". The partially convertible rupee closed at 59.13/14 per dollar compared with 59.76/77 on Tuesday. It rose to as high as 59.0150, its strongest since July 1. The unit gained 1.1 percent on the day, its biggest single-day gain since June 28. Rates and equity markets, however, reacted negatively to the further tightening of liquidity with the benchmark 10-year bond yield rising to a 14-month high of 8.50 percent while the 1-year overnight swap rate rose to a near 5-year peak. Traders will continue to monitor any comments from policymakers for near-term direction. "Rupee is likely to strengthen further towards 58-57 levels in the coming days as the central bank's actions are giving some strength to the local currency," the head of foreign exchange trading at a private bank said. Expectations of further tightening of domestic rupee liquidity pushed up onshore forward rates. The one-year onshore forward premium rose as high as 518.75 points, its highest since August 1998. Traders said the spot rupee was also helped by some long unwinding seen in the offshore non-deliverable forwards. The one-month NDF contract was at 59.57 while the three-month was at 60.46. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 59.13 with a total traded volume of $3.3 billion.(Reuters)
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At first sight, it didn’t appear threatening. Almost like a puffed up cushion. So far, so good, I thought to myself. It was a lazy Sunday morning and while most people were still planning their day, I was at FitnessFirst, a state-of-the-art gym that I visit every once in a while to check out the latest trends in fitness. The puffed up cushion was actually the Bosu ball, short for Both Sides Utilised, a fitness training device to make an already tough day at the gym tougher. It’s amazing the consistency with which fitness enthusiasts in their zest to make the world a fitter place keep coming up with new tools! The Bosu ball was invented in 1999 by one such devotee — David Weck. It consists of an inflated rubber hemisphere attached to a rigid platform. It almost looks like a stability ball (another one of those devices) cut in half and gets its name from the fact that it can be positioned in two ways. But the non-threatening, almost likeable appearance of the Bosu ball is meant to lull you into a false sense of comfort — as I found out soon enough. What it does actually is make exercise extra challenging. With a platform on one side and a rubber dome on the other, the tool adds instability to your workouts, forcing you to use your core to remain steady. Even a simple exercise like a lunge puts more pressure on your thighs and calves as you put one foot on the unstable rubber dome. “Use the dome-side up for cardio, lower body strength or core moves,” says Prandeep Bordoloi, my extremely fit trainer as he jumps up and down on the Bosu ball, landing perfectly each time. I give it a shot. I jump and land on the squishy dome…well almost. My foot slips and I land on my backside on the polished wooden floor. Oh well, may be I ought to start with stepping up and down and start jumping only after I’ve got my balance right, I say wearily. “That’s where the Bosu ball is going to help you,” says Prandeep as he sees me rubbing my back gingerly. The Bosu ball helps improve your strength and balance which is important for preventing injuries, he explains. The Bosu ball requires you to maintain your centre of gravity over a surface that is constantly changing. I find just standing on it a challenge as my body moves and shifts in and out of balance. “To keep yourself in place you have to constantly engage the stabiliser muscles in your upper and lower body,” says Prandeep even as I perch perilously atop the dome. I realise that concentration helps. My body is more aligned and balanced if I concentrate hard. It’s a bit like holding a yoga pose, the minute you stop concentrating on your breathing, you lose control of the pose. I’m still coming to terms with the squishy side, when Prandeep flips it over. “You can use the platform side for upper body exercises, like push-ups or more core moves, like planks,” he explains, again giving a perfect demonstration. He makes me do the forearm plank which targets the core, glutes, shoulders and the lower body. I place the Bosu ball dome-side down and then hold it with both arms (shoulder-width apart), with my forearms and upper arms at 90 degrees. Then I slowly raise my hips so that my body is in a straight line from head to heel. I’ve done the same exercise previously on a flat surface and have found it tough. But doing it while managing an unstable surface is more difficult and, therefore, more effective, he informs me. Thirty minutes on the Bosu ball is equivalent to 45 minutes in the gym, doing a series of exercises such as walking on the treadmill, cycling and doing weights. That’s the other thing. Everybody is in a hurry nowadays so any device which helps you save time becomes popular. A Bosu ball workout is good for the core, glutes, quadriceps, balance and strength, explains Prandeep. And to drive home his point, he asks me to do the Superman pose. I’m intrigued. Will I start flying like the Man of Steel, I joke. Unlikely, he says with a smile. But with regular exercise and holding on to the pose longer, I’ll become a whole lot fitter and stronger. The Bosu ball is put dome-side up and I sit on it with my knees bent and hands on the sphere. Then I slowly lift my right arm and left leg straight (parallel to the ground) to do the Superman flying pose. Hold for 30-60 seconds and then switch to the other arm and leg. After three sets, I’m near collapse; thankfully, Prandeep calls it a day. Is the Bosu ball worth it? I think so. Will I be using it regularly? I hope so, but going by my track record, it’s unlikely. smitatripathi(at)bworldmail(dot)in Twitter: (at)smitabw(This story was published in BW | Businessworld Issue Dated 12-08-2013)
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