In an interview to CNBC-TV18's Reema Tendulkar, Pankaj Mathpal of Optima Money Managers answers investors' queries regarding personal finance.
In an interview to CNBC-TV18's Reema Tendulkar, Pankaj Mathpal of Optima Money Managers answers investors' queries regarding personal finance.
The management says that the funds from this deal will be used to reduce debt.
We felt it was the right and appropriate time to sell subsidiary.
Peter Kerkar
Group CEO
Cox & Kings (India)
Travel firm Cox & Kings has sold the camping division of its European subsidiary for Rs 892 crore of which 855 crore is payable in cash on completion of the deal. The management says that the funds from this deal will be used to reduce debt, which currently is around Rs 4,200 crore.
Also Read: Cox & Kings posts net loss of Rs 46 crore in Q4 FY14
This copy will be updated shortly
Cox & Kings stock price
On June 02, 2014, Cox & Kings closed at Rs 182.10, up Rs 13.35, or 7.91 percent. The 52-week high of the share was Rs 193.50 and the 52-week low was Rs 84.50.
The company's trailing 12-month (TTM) EPS was at Rs 8.27 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 22.02. The latest book value of the company is Rs 83.41 per share. At current value, the price-to-book value of the company is 2.18.
Published on Mon, Jun 02,2014 | 16:18, Updated at Mon, Jun 02 at 16:18Source : Moneycontrol.com
By: Aasheesh Arjun Singh, Member - ICAI
April 1, 2014 will be remembered as a very significant day for corporate India. On this date, 184 sections of the Companies Act, 2013 ('the Act') came into effect, and with it completely changed the Indian corporate landscape. The landmark act included sweeping changes that are unlikely to be seen most lifetimes and will impact the way the way business is done in India through companies- promoter owned, multinational, large, medium and small.
Amongst the many changes, are a set of sections and rules that govern companies and their auditors, with the view to altering what many regulators believe are over- comfortable and long standing relationships between auditors and their audit clients. Relationships that threaten their objectivity to opine independently on the truth and fairness of those financial statements.
The law now requires defined companies to rotate their audit firm every 10 years. For the initial transition, corporates whose auditors that have already completed the defined period, have 3 years to make the change to a new auditor i.e. until the year ending 31 March 2017. It is good to note that the Act and its accompanying rules are very prescriptive to ensure that Indian companies and audit firms do not work around this requirement by setting up alternate structures and therefore defeat the substance behind this regulation.
It is estimated that the number of companies that potentially need to make this change in the next 3 years to be between 12,000 and 14,000, and these numbers merely represent listed companies. The Act has widened the coverage and included unlisted public companies and private companies to change auditors provided they meet certain size thresholds on share capital, prescribed as ? 10 cr and ? 20 cr in private and unlisted public companies or borrowings in excess of ? 50cr. Effectively, making every listed company, private equity backed company and Indian subsidiary of global multinationals, a part of this mandatory rotation process. This triggers an unprecedented revolution in the Indian audit profession which thousands of audit firms.
As management and corporates boards look to make this change, what should they be looking out for in their new auditor? Is it institutional acceptance, the size or the potential global reach of the auditor, knowledge and skills or ability to understand the business? There is a research study in the US that indicates that the maximum restatements in company financial statements happen in the year following the change in an auditor. Therefore it is imperative for companies to break down their assessment of the new auditor into the quantitative and qualitative aspects, to give themselves adequate comfort on the appropriateness of their choice.
Firstly, technical competence of the auditor is important but in today's world can be taken as table stakes. Every auditor must know the technicals of his job, just as every CFO must know his. Same for institutional acceptance. Today a large number of auditors and firms are accepted by boards and institutional investors and that is not a differentiator as corporates make the decision. However, companies should make that individual assessment and it may be erroneous to believe that size equates technical depth.
Secondly, auditors need to have a very robust mechanism to monitor independence with their audit clients. The law has significantly expanded restrictions on the non- audit services that auditors can provide and any misstep would result in independence being impaired. Similarly the law has very extensive restrictions on audit firm partners or their relatives holding securities in their clients. Does the prospective auditor have a real time system to capture this information and ensure that breaches are identified/ cleared, no matter how potentially revenue generating these could be?
Thirdly, what is the prospective auditor's quality control system and how does the auditor ensure compliance with the stringent quality standards demanded by the regulators? Was the audit firm or audit partner involved in any regulatory action in the past?
These quantitative measures will ensure that the auditor will get the job done and also be in compliance with the law. But these are the bare minimum that every auditor must have and what should be the differentiating factors in this selection? As the perception grows that audit services are potentially commoditised, it is the qualitative aspects that could drive decisions. Corporate demand value for money and what could be that value?
To start, an auditor's understanding of the industry and how it could impact their audit process. As businesses have become more complex, global and innovative, so have the accounting and financial reporting frameworks. A service provider who understands a company's business is more likely to be able to interpret and relate that to the accounting framework. An auditor who understands the business is more likely to do a more focused audit and actually provide value to corporates in the process – potentially ensuring that misstatements are minimised but also adding value by making the audit more efficient and also highlight areas of improvement in the process.
Secondly, who would constitute the immediate team that would service the company? While an audit firm may have hundreds of employees, it is the immediate service team that management will interact with on a regular basis. Does that team have the understanding to manage a company of the size and unique nature of its operations? Do they have prior experience to understand corporate expectations and can they deliver to what they promise?
Thirdly, is the incoming auditor proactive or reactive? Does he work towards a solution or does he leave the company to find its way through the maze? Independence is sacrosanct but auditors should be able to discuss a solution within the overall independence framework.
Lastly, is the auditor able to service the needs of a corporate? Every one promises to reach for the stars but can they balance their various commitments and still exceed a corporate's expectations? Are they agile enough to give their views on a timely manner which may not necessarily be what the company would like to hear?
Companies have three years in the transition period and they could use this time wisely to make their choice. Companies and Audit Committees could do well by thinking of a potential shortlist, the process for selection, and if appropriate, consider a switch at some subsidiaries in order to work with multiple firms and assess which firm best meets with their assessment before making the change at the group level.
An audit is a necessity but whether it ends up becoming a burden for the Company or a process for adding value, will depend on advance planning and on managing this transition in the midst of this Audit revolution.
Investing in fixed income instruments for example provides you a steady income along with investment diversification as well as safety and that's exactly what Harsh Roongta of apnapaisa.com will tell us about.
If you are anything like the majority of retail investors, chances are that the bulk of your savings would be lying in a bank. However, there are people who want to invest money but are too scared to lose it but not all investments are risky. Investing in fixed income instruments for example provides you a steady income along with investment diversification as well as safety and that's exactly what Harsh Roongta of apnapaisa.com shares best fixed income investment options.
We have HSBC India Manufacturing PMI on Monday (April reading 51.3) and on Wednesday we have both the HSBC India Services PMI (April reading 48.5) and HSBC India Composite PMI (April reading 49.5).
The key event, however, would be the RBI Credit Policy Review on Tuesday. I believe that RBI would maintain the status quo as far as repo rates are concerned and would also not temper with liquidity parameters as the over-night rates in the recent past have indicated ample liquidity in the system.
Other reasons apart, RBI may pursue with the hawkish policy also because of 60 percent probability of El Nino striking India this monsoon season which, when it struck India last time in 2009, led to an increase of some 2.5 percent in inflation parameters.
Nevertheless, the tone and language of the RBI Governor Rajan is to be keenly watched in a sense, that due to recent change in the government which has its agenda skewed towards growth, how does Rajan wish to pursue his agenda on controlling inflation as his primary priority and balance his views between his priority of controlling inflation and the newly elected governments' priority of growth.
As far as the markets are concerned, I believe they have bottomed out and we may see a fair chance of markets moving up in the week ahead. There is a huge interest within the FII community for India after Modi getting elected as the leader – India being termed now as part of "Fabulous Five" instead of being in "Fragile Five" just a month back. Second, although the budget, expected sometime in July, is a key trigger, but I believe we would keep on hearing upon reformist announcements and policies continuously especially with the 100-day agenda of Modi government.
The other key event for the week would be Thursday's meeting of ECB in which there are high expectations that Draghi would cut the interest rates as well as resort to some sort of broad based asset buying, the QE, a hint of which he has been throwing around in the recent past.
Such expectations from ECB have also increased because of the success of far right parties in the recently concluded European parliamentary elections and Draghi would like to act before the elected members of the far right parties start exerting their influence.
Other key marking moving global events are: China – Sunday: Chinese Manufacturing PMI; Tuesday: China HSBC Manufacturing PMI / U.S. - Monday: ISM Manufacturing PMI; Wednesday – ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI; Friday – Nonfarm Payrolls, Unemployment Rate.
Aviral Gupta, Investment Strategist, Mynte Advisors)
The GDP numbers for last year were as bad as expected but will they move the inflation-hunting RBI governor Raghuram Rajan to give a rate cut.
Rajan will formally roll out his red carpet for the new Modi government as he announces the Credit Policy on June 3. Expectations are that the governor may keep it simple this time.
Also Read: RBI rate decision key for shares
A CNBC-TV18 poll of bankers and economists show that 90 percent of bankers and economists expect RBI to keep repo rate unchanged at 8 percent and only 10 percent expect a 25 basis points cut. However, the market is divided over the future policy changes.
While 50 percent expect RBI to hold rates for the rest of the year, 20 percent see a hike and another 30 percent a rate cut before the year ends.
On growth, the Street is in consensus with RBI's FY15 guidance of 5-6 percent. Eighty percent of the bankers and economists expect GDP growth at 5-5.5 percent, while the remaining 20 percent see it between 5 percent and 6 percent.
On inflation, the market is in line with RBI's glide path of 8 percent by March 2015. Again, 80 percent of those polled see CPI inflation at 8 percent or below and the remaining 20 percent expect it to be above 8 percent.
While only 50 percent expect RBI to sound hawkish in the policy, the other half see the central bank to strike a neutral tone. But the market is all ears for any indication of RBI softening its hawkish stance and its position on inflation targeting.
V Srinivasan, ED, Axis Bank , said Budget will be the key event as it will show how exactly the new government is approaching the finances in the fiscal deficit situation.
"Clearly, I would think the externals sector situation is broadly under control. We need to see how the government looks at finances and because there is a question in terms of when the capex cycle is going to start, who is going to kick start it and what role will the government play. Post this, you can take a call in terms of exactly what will happen to interest rates," he said.
Srinivasan thinks interest rates will stay stable for the next quarter or so.
Soumya Kanti Ghosh, Chief Economic Advisor, SBI , doesn't see a softening in the policy rates this year.
"Our hope is RBI will very minutely watch movements in rainfall pattern. It has already indicated that CPI numbers could head down because of possibility from the base effect. That has been taken into consideration. If economic growth picks up, there are possibilities that there is a little softening of the rates at the mandi market. But as such we don't see a change in policy rates this year, " he said.
Jayesh Mehta, MD & Treasurer, BoFA-ML India, too doesn't expect much change from the April 1 policy.
"I think the governor's theme on inflation will remain, that's the priority at this juncture. Though we don't expect hawkishness or rate hikes. there is some probable built-in expectation that it might be a little bit more dovish than April 1. Maybe after Budget, the August 1 policy could be more dovish. The June policy will be a non-event," he added.
Zydus Pharmaceuticals USA, a unit of the company, is recalling 10,200 bottles of promethazine hydrochloride tablets that contain foreign tablets, according to information on the US Food and Drug Administration (FDA) website.
Cadila Healthcare is recalling over 10,000 bottles of an anti-allergy drug in the US because of a mix-up in tablets.
Zydus Pharmaceuticals USA, a unit of the company, is recalling 10,200 bottles of promethazine hydrochloride tablets that contain foreign tablets, according to information on the US Food and Drug Administration (FDA) website.
The recall is due to the "presence of atenolol 25 mg tablet mixed into promethazine 25 mg tablet bottles," the FDA said. The nationwide recall was initiated on May 8. The 25-mg tablets in 100-count bottles were manufactured by Cadila Healthcare and distributed in the US market by Zydus Pharmaceuticals, it added.
The withdrawal was classified as a Class-II recall, which the FDA defines as "a situation in which use of or exposure to a violative product may cause temporary or medically
reversible adverse health consequences or where the probability of serious adverse health consequences is remote."
Comments from Cadila Healthcare could not immediately be obtained.
Cadila Healthcare shares today closed at Rs 931.40 on the BSE, up 0.37 per cent.
Cadila Health stock price
On May 12, 2014, Cadila Healthcare closed at Rs 1000.25, up Rs 7.80, or 0.79 percent. The 52-week high of the share was Rs 1079.00 and the 52-week low was Rs 631.00.
The company's trailing 12-month (TTM) EPS was at Rs 43.13 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 23.19. The latest book value of the company is Rs 186.33 per share. At current value, the price-to-book value of the company is 5.37.
Just as temperatures drop a little in parts of Rajasthan, Madhya Pradesh and Vidarbha snatched its position of the hottest region. On Friday thunderstorm activity was observed over north Rajasthan, Punjab, Haryana, Delhi and parts of west Uttar Pradesh.
According to the latest weather update by Skymet Meteorology Division in India, moisture laden south westerly winds favoured the abating of heat wave from most parts of Rajasthan but such conditions prevailed at a few places over Gujarat, Rajasthan, east Uttar Pradesh, Madhya Pradesh and Vidarbha.
Maximum temperature of 46°C or more has been recorded at several places including Nowgong, Chandrapur, Kota, Damoh, Khajuraho, Wardha and Brahmapuri.
Weather in Northeast India and West Bengal
Meanwhile, West Bengal and Northeast India continues to remain cool and comfortable with maximums hovering around 32°C. Silchar in Assam received 14 mm, while Cherrapunji received 21 mm of rain on Friday.
In West Bengal, Bankura received 34.4 mm of rain, Asansol received 10.6 mm, Burdwan 33 mm, Sriniketan 28 mm, Bahrampur 21 mm, Malda 24 mm of rain. In most of the places temperatures have come down to comfortable levels. Thundershowers will continue in the state and Northeast India for the next 48 hours.
According to the latest weather update by Skymet Meteorology Division in India, the cyclonic circulation over Gangetic West Bengal and a trough extending from the system up to Telangana is responsible for bringing such heavy showers.
By: Skymetweather.com
The GDP numbers for last year were as bad as expected but will they move the inflation-hunting RBI governor Raghuram Rajan to give a rate cut.
Rajan will formally roll out his red carpet for the new Modi government as he announces the Credit Policy on June 3. Expectations are that the governor may keep it simple this time.
Also Read: RBI rate decision key for shares
A CNBC-TV18 poll of bankers and economists show that 90 percent of bankers and economists expect RBI to keep repo rate unchanged at 8 percent and only 10 percent expect a 25 basis points cut. However, the market is divided over the future policy changes.
While 50 percent expect RBI to hold rates for the rest of the year, 20 percent see a hike and another 30 percent a rate cut before the year ends.
On growth, the Street is in consensus with RBI's FY15 guidance of 5-6 percent. Eighty percent of the bankers and economists expect GDP growth at 5-5.5 percent, while the remaining 20 percent see it between 5 percent and 6 percent.
On inflation, the market is in line with RBI's glide path of 8 percent by March 2015. Again, 80 percent of those polled see CPI inflation at 8 percent or below and the remaining 20 percent expect it to be above 8 percent.
While only 50 percent expect RBI to sound hawkish in the policy, the other half see the central bank to strike a neutral tone. But the market is all ears for any indication of RBI softening its hawkish stance and its position on inflation targeting.
V Srinivasan, ED, Axis Bank , said Budget will be the key event as it will show how exactly the new government is approaching the finances in the fiscal deficit situation.
"Clearly, I would think the externals sector situation is broadly under control. We need to see how the government looks at finances and because there is a question in terms of when the capex cycle is going to start, who is going to kick start it and what role will the government play. Post this, you can take a call in terms of exactly what will happen to interest rates," he said.
Srinivasan thinks interest rates will stay stable for the next quarter or so.
Soumya Kanti Ghosh, Chief Economic Advisor, SBI , doesn't see a softening in the policy rates this year.
"Our hope is RBI will very minutely watch movements in rainfall pattern. It has already indicated that CPI numbers could head down because of possibility from the base effect. That has been taken into consideration. If economic growth picks up, there are possibilities that there is a little softening of the rates at the mandi market. But as such we don't see a change in policy rates this year, " he said.
Jayesh Mehta, MD & Treasurer, BoFA-ML India, too doesn't expect much change from the April 1 policy.
"I think the governor's theme on inflation will remain, that's the priority at this juncture. Though we don't expect hawkishness or rate hikes. there is some probable built-in expectation that it might be a little bit more dovish than April 1. Maybe after Budget, the August 1 policy could be more dovish. The June policy will be a non-event," he added.
The buzzing social media network that allows only 140 characters per tweet is practically the world's town square, says Twitter India hear, Rishi Jaitly.
Speaking to CNBC-TV18, Jaitly says India witnessed its first Twitter elections this year.
"Our biggest contribution in this space, first of all television, it was very difficult to watch television coverage during the election and not feel the impact of Twitter. Twitter is now the second screen for TV in India," he adds.
Also read: Modi most mentioned politician in 2014 poll-related tweets
And this couldnt be farther from truth. There were more than 58 million tweets on the Indian election this year. BJP leaders like Sushma Swaraj and Mukhtar Abbas Naqvi chose Twitter to express dissent with the party, while Prime Minister Narendra Modi used the micro blogging site to announce his victory.
Below is the edited transcript of the interview.
Q: Let me start by asking you this, that from verifying celebrity accounts to dodging political curve balls describe to me a day in Rishi Jaitly's life?
A: I wake up and I check Twitter. My day is full of evangelizing this service, that is Tweeting across partners, whether you are in the media business, the mobile business, entrepreneurs, brands and others and the day of course ends with Twitter. Before I go to bed I am usually checking Twitter, tweeting back to people.
Q: Is it difficult, you follow about 900 accounts?
A: I have vowed that I will not follow more than 1000 people. So, if you follow me on Twitter you see that I am always hovering in the 990s.
Q: Unlike your larger social networking rivals you have entered India just two years ago. You are now competing with the likes of Facebook and Google in this very fierce competitive advertising space and you are the managing director and your role is to basically turn India into Twitters largest market. How are you planning to do that?
A: I researched the history of Twitter in India. Lot of people talk about the 26/11 attacks in Mumbai as one of the first times they heard of Twitter. You can still find tweets of people tweeting from Colaba saying I am trapped at the Inox theatre, what is happening? All the way through the protests in Delhi in 2012, India's victory in the World Cup in 2011, the state elections last year, IPL, this Lok Sabha election, what we are trying to do is drive growth. So, what we are doing is immersing ourselves in India's media business. We are working with television broadcasters, public figures, news organizations, political parties, government agencies, cricket federations, cricketers and helping everybody in the audience business understand that Twitter can be your mobile microphone. It can be your way to connect with in real time your fans and your audiences.
Q: Talking about the general elections what according to you are the top three things that would not have happened if there was no Twitter?
A: It is safe to say this was a Twitter election. It was India's first Twitter election. Our biggest contribution in this space, first of all television, it was very difficult to watch television coverage during the election and not feel the impact of Twitter. Twitter is now the second screen for TV in India. It is indispensible when you are watching TV to have Twitter open, so, whether it was Arnab Goswami reading tweets on air, Rajdeep Sardesai saying #AskRajdeep, Rahul Kanwal hosting a Twitter debate show every Friday night at 9 pm or Barkha Dutt on Counting day saying tweet to us and we will give you the election results, things like that. Twitter SMS, both Narendra Modi and the Congress party used Twitter SMS. You could actually dial a phone number and leave a missed call and you would receive their tweets via SMS.
So, we made Twitter more accessible and then finally news broke on Twitter. We all know that first thing Narendra Modi did was tweet then sought his mothers blessings. When we was deciding where to contest from the first thing he did was tweet. We now see him engaging in diplomacy with world leaders. Tweeting with Prime Ministers and Presidents. So, those are some of our contributions.
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