NEW DELHI, Dec 30: The Confederation of Indian Industry (CII), in its pre-budget recommendations to ...more

Mobile MP3 recorders:
ready for prime time?

STUTTGART, Dec 30: The current rage in the world of MP3 players has been a standard....more

‘Cenvat rules should
be made practical,
user-friendly’

NEW DELHI, Dec 30: In its pre-budget memorandum submitted to the Government, the Federation of ....more

Call rates firm on
reporting Friday, bond rally

MUMBAI, Dec 30: The interbank call money ruled firm on sustained demand for funds, coupled with short ...more

NEW DELHI, Dec 30: Amidst exceptionally subdued oil prices globally, India failed to keep pace with promised end of price controls and phasing out of whopping subsidies, virtually averting major price hike after several round......more

Brokers flay SEBI for
banning them from holding
office in exchanges

MUMBAI, Dec 30: Stock brokers have criticised the Securities and Exchange Board of India (SEBI) for .....more

Markets continued to
reel under war frenzy

MUMBAI, Dec 30: The Bombay and National Stock Exchanges continued to remain bearish in the week amid apprehensions that the continuing stand-off between India and Pakistan might escalate into a full-fledged war. .......more

CII: Reduce subsidies, remove distortion in pricing policy

NEW DELHI, Dec 30: The Confederation of Indian Industry (CII), in its pre-budget recommendations to the Ministry of Railways, has suggested the phasing out of cross-subsidisation, removal of the distortion in its pricing policy and the reduction of subsidies.

In a six-point revival package for railways, the Confederation has emphasised on the need to phase out cross-subsidisation in the Indian Railways. Massive subsidisation of passenger fares and overcharging of certain categories of freight, despite the fact that freight comprises 70 per cent of the revenue, leads to diversion of freight traffic to road transport, according to a CII release issued here today.

CII has also recommended the correction of the distortion in the pricing policy of the railways. The freight rates should reflect the cost of the operation plus profit margin and the decision for increase of freight should be based on sound costing principles rather than on socio-political consideration.

The Confederation has also urged the Government that subsidies on transportation of essential commodities, passenger services and investment in uneconomic branches must be defined and reduced as far as possible.

It said Railways need to adopt aggressive marketing strategies to re-capture the lost market share. An important step that railways must take is to start schedule freight trains, providing guaranteed transit time.

It has also stressed that the railways should revert to the earlier practice of assisted siding where the capital cost in respect of track outside the premises of sliding holder is borne by the railways or private party can fully finance the siding and fifty per cent of the cost can be adjusted in the cost of freight in the specified time frame.

The Federation has also stressed the need to encourage multimodel transportation as only this mode of transportation could provide more safety to the customers.

It further pointed out that railways can improve its financial health by vigorously raising revenue through non-traditional sources. It has also stressed the need for right sizing of the railway staff to maximise transportation output per person.

It feels that the use of it, particularly in the areas of track and terminal management, information system on freight movement, reservation system and streamlining operations would improve the effectiveness and efficiency of the railways.

The CII has also pointed out that the scope for public-private partnership is enormous in railways, ranging from commercial exploitation of air space to private investments in railway’s infrastructure and rolling stocks. (UNI)

Mobile MP3 recorders: ready for prime time?

STUTTGART, Dec 30: The current rage in the world of MP3 players has been a standard function of cassette and minidisk players for years: the ability to record.

Until now, these tiny jukeboxes for digital music have had to be fed their MP3 files via a PC. Increasingly, however, the devices can be hooked up directly to stereo systems.

But experts have been critical of the relative poor sound quality of MP3 recorders compared with minidisk players. The differences between MP3 recorders aren’t just in the details, such as whether a particular unit has a microphone or no microphone. Sometimes the underlying design approaches of various models are completely different.

When it comes to storage media, for example, there is nothing even close to a standard format, and the same holds true for how a device connects to a PC.

The jukebox recorder from French manufacturer archos appeared in europe a few weeks ago. At a weight of around 300 grams, it is more slender than older Walkman models, yet it can replace a fair-sized collection of records. The six gigabyte hard drive can record the contents of 100 CDs, the company claims from its headquarters in Paris.

It also differs from other MP3 recorders in the way it transmits tone signals. It houses not only the typical analog input port but also a digital one, minimising the chances for a dilution of sound quality. The device retails for around 400 dollars.

Most MP3 recorders offer much less storage space than the colorful archos model, however. Typically, 32 or 64 megabytes of storage are standard. That’s enough to hold an hour or so of music in MP3 format.

MP3 players are well-suited for activities such as jogging. They weigh less than 100 grams and, unlike CDs, their storage cards won’t skip when jostled. Devices in this class include Aiwa’s MMF-X500, Mediencom’s MP3/WMA dual player and encoder, and the YEPP 30S from Samsung.

The current crop of devices on the market can draw enough power from their energy sources to provide several hours of musical enjoyment. One small battery will allow for up to ten hours of playback and five hours of recording, according to manufacturers.

Because many of the MP3 recorders also include built-in microphones, a number of models can also serve as dictation devices. They can record between four and eight hours of speech, depending on the quality of the recording.

A higher quality is needed to record music, though, so only an hour of data at the standard 44.1 kilohertz and 128 kilobits per second rates can be achieved.

The mediacom device, also offered as the microboss MP3 dance in many places, can even transmit music recorded at the maximum quality rating of 320 kilobits per second, although the total recording time sinks to a more humble 20 minutes with higher quality MP3 files.

In terms of dimensions, the mediacom model is an exception to the rule. Costing around 220 dollars, it has the same dimensions as a cassette and can be put into any cassette player, including car models. The built-in sound heads pass the mp3 music signal to the sound heads of the "host device," allowing any cassette deck to function as an MP3 player.

A test of MP3 recorders conducted recently by the independent european consumer product testing group stiftung warentest ended with judges showing little enthusiasm for the current MP3 recorder technology. Judges hooked up the devices to hi-fi equipment and found that the tone quality was "relatively poor".

"Even the operating instructions had mistakes and were not fully comprehensible," the group reported.

There’s also a catch with the devices from Samsung and Aiwa. Their so-called SDMI mechanism is intended by the manufacturers to prevent the distribution of illegal copies of music. At the same time, however, this technology also means that personal music recordings cannot be further remixed on one’s home PC.

Digital audio expert hans-ulrich fessler of the industry magazine "Stereoplay" sees another problem. "The MP3 encoder that is built into these devices is in general significantly worse than what’s available on a PC."

A perceptible quality loss is the result. There are also problems during the analog to digital conversion. "You can hear unintended noises. This is no alternative to the established minidisk recorders that are much cheaper and which can record more," Fessler says.

Still, the portable MP3 players have found their supporters. "They are for people who want to listen to music on the go, and who also at the same time want a dictation device, for speech notes, for example," says Fessler. (DPA)

‘Cenvat rules should be made practical, user-friendly’

NEW DELHI, Dec 30: In its pre-budget memorandum submitted to the Government, the Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested that Cenvat rules should be made practical and user-friendly.

Rule 3(4) which provides for removal of inputs or capital goods on which Cenvat credit has been availed from the premises of the manufacturer, on payment of excise duty at the specified rate is not justified. It should be amended so as to enable the assesses to return capital goods by payment of excise duty equivalent to the amount of Cenvat credit taken by the assess. Alternatively in such cases, balance 50 per cent cenvat credit should be allowed in the subsequent financial year irrespective of whether the assess is in possession of such capital goods or otherwise, FICCI said.

A close comparison of mandatory requirement under the Central Sales Tax Act, 1956 and Central Excise Act, 1944 will lead to contradiction between these two acts as far as sale in transit is concerned. Both the acts are central legislation’s and as such there should not be any anomaly or contradiction on the same issue. When sale in transit is recognised or accepted under Central Excise Act, 1944, the same should have been allowed under Central Sales Tax Act also as per central excise requirement.

At present, the industry faces hardship in cases of sale in transit under central sales tax as documents of title to goods are to be endorsed during the course of voyage whereas the Central Excise Act requires such endorsement for such sale in transit to be done before commencement of such voyage. Provisions of Section 3(B) of the Central Sales Tax Act may suitably be amended in consonance with the provisions of the Central Excise Act, the chamber said. As regards extension of Cenvat credit on capital goods used for manufacturing exempted capital goods within the premises of the manufacture, Rule 6(4) should be amended. The rule should enable the assessees to avail cenvat credit on the capital goods (plant and machinery) which are used in the manufacture of exempted dies and tools.

The treatment of electricity under the central excise law should be made available both on inputs and capital goods when at least 50 per cent of the total generation of such energy is used in the factory of generation. In view of the dire crisis of electric energy throughout the country, the Government should come out with a transparent policy.

Under Rule 7(2), the manufacturer has to ensure that the inputs or capital goods in respect of which he has taken the Cenvat credit are goods on which the appropriate duty of excise, as indicated in the documents accompanying the goods, has been paid. It is difficult for manufacturer to ensure this duty is paid on fortnightly basis. It is suggested that this provision should be deleted.

Interest paid on differential duty arising out of finalisation of provisional assessment be allowed for Cenvat credit to those assessees who use such inputs in the final dutiable products. Re-introduce the comparable goods valuation method only for those assessees where the goods transferred from one unit to another unit of the same manufacturer, subsidiary, holding company, are used in the manufacture of final dutiable products. This will avoid unnecessary provisional assessment with revenue neutral exercise and reduce interest burden on the assessee. Wherever the captively consumed goods are used in the manufacture of exempted final products, then the present method of valuation on manufacturing cost plus 15 per cent be made mandatory, FICCI suggested. (UNI)

Call rates firm on reporting Friday, bond rally

MUMBAI, Dec 30: The interbank call money ruled firm on sustained demand for funds, coupled with short supply during the second week of the reporting fortnight ended December 28, 2001.

Call rates opened at 6.75-7.00 per cent, slipped briefly to the week’s low of 6.40 per cent towards the close of thursday, but again moved up sharply on Friday to close the week higher 8.50-9.00 per cent as uncovered banks rushed for funds to meet the reserve requirements. While most of the lending banks stayed away from the market, focusing on the forex market where the rupee was falling continuously, few other banks quoted higher rate in double digit on Friday.

Reflecting the tight liquidity crunch, the Reserve Bank of India (RBI) after a gap of few weeks, did not receive any bid in its daily repo auction in all the four market days of the week. The central bank infused liquidity of Rs 250 crore on friday through reverse repo auction at 8.50 per cent.

According to dealers, the mismatch in demand and supply on account of last-minute covering by banks on reporting Friday, pushed the call rates up on Friday.

Government securities witnessed dull and range-bound trading initially during the week as fear of war continued to dampen the market sentiment. Further, the fall of the rupee against US dollar and tight liquidity in the money market also affected the bond market.

However, towards the week-end, bond prices staged a smart rally on fresh buying interest by banks and mutual funds at the relatively lower levels. Gilt prices gained about Rs 4.50-2.00 on Thursday and friday as State Bank of India (SBI) and other banks started buying securities. The bench-mark ten year bond 11.5 per cent 2011, ended the week Rs 1.30 higher at Rs 122.30 as compared to Rs 121 of the previous week-end.

Volumes, however, remained relatively thin, with many foreign banks and primary dealers staying off the market ahead of the year-end, dealers added. (UNI)

Oil: Slipping on decontrol and subsidies
in easy global market

NEW DELHI, Dec 30: Amidst exceptionally subdued oil prices globally, India failed to keep pace with promised end of price controls and phasing out of whopping subsidies, virtually averting major price hike after several rounds of consultations between Petroleum and Finance Ministers in 2001.

Breathing easy with sliding crude prices, from peak of 37 dollars a barrel last year to about 18-20 dollars now, the Petroleum Ministry for once did not create a scare of yet another hike in prices of petroleum products, hoping that easy global trends would limit oil pool deficit to just about Rs 12,000 crore by the end of current fiscal.

Yet differences surfaced on phasing out of subsidies, in accordance with roadmap of dismantling administered pricing mechanism finalised wayback in 1997, despite declining consumption levels on account of domestic slowdown.

After a series of meetings, Finance Minister Yashwant Sinha and Petroleum Minister Ram Naik decided that phasing of subsidies on kerosene and cooking gas (estimated at over Rs 12,000 crore a year) would be prolonged to five years, virtually averting a steep hike in prices projected by earlier schedule.

Sinha said "in some areas we might deviate from the 1997 cabinet resolution for deregulation of petroleum sector in view of the changed circumstances,"

The subdued markets also put a strain on oil companies both in terms of business expansion as also refinery margins at a time when they were seeking investments to prepare for the free oil market scheduled from April 1, 2002.

Beginning the year well with deregulation of pricing and import of jet fuel (aviation turbine fuel) from April one, Government finally cleared decks for first ever privatisation in the oil sector and IBP Co is slated to be a private entity next month.

However, it dragged feet at allowing companies which met the Rs 2,000 crore investment criteria in oil infrastructure in petro retailing in the penaltimate year to dismantle of APM.

Though Government committed to allowing private sector in marketing of controlled petro products from April next, hitches on sharing of existing infrastructure on common carrier principle basis and Ministry’s preference for back seat driving through a state administered regulator kept private and foreign companies from unveiling major plans.

Oil sector was prehaps the only sector which had windfall gains from the September 11 terrorist strikes in US with crude oil prices slumping from 26-28 dollars a barrel to historic lows of 18 dollars per barrel in the aftermath. This proved a boon as the Indian economy was experiencing globalisation blues in export slowdown and industrial recession.

The country’s showcase privatisation in oil exploration -the Panna-Mukta and Tapti Oil and Gas Fields - was again in spot light when the present operator Enron, the bankrupt US energy trader, could not resolve its exit option with joint venture partners Oil and Natural Gas Corporation and Reliance.

Though British gas put a fair price of dlrs 388 million for buying Enron’s 30 per cent stake, the deal expired as ONGC faulted on accession of operatorship of the fields to the new buyer.

The year 2001 also saw a proposal for mega merger of four state owned oil and petrochemcial companies - Indian Oil, ONGC, Gas Authority of India and Indian Petrochemcials - to create an integrated oil company with an annual turnover of over Rs 150,000 crore.

The proposal however could not move beyond the Secretary level as Naik put spokes for being kept in dark. While Petroleum Ministry wanted the prospective acquirer to give a bank guarantee of Rs 2,000 crore - the minimum investment criteria for entering petro marketing, the DoD was of the view that such stipulations would drive away even serious players. Finally the bank guarantee was waived but absence of clear cut marketing guidelines and post-apm regime discouraged invitation of price bids. French oil major Totalfina suspended its Rs 2,300 crore LNG import project at Trombay as Petroleum, Finance, Power and Shipping Ministeries debated on what should be the mode of LNG import and what concessions were needed.

The year gone by would also be remembered for Supreme Court’s order on converting Delhi’s entire transport fleet to only CNG mode. Having spent Rs 12,000 crore in bringing out low sulphur/lead petrol and diesel, Centre said not enough gas was available while commuters were grounded. (PTI)

Brokers flay SEBI for banning them from
holding office in exchanges

MUMBAI, Dec 30: Stock brokers have criticised the Securities and Exchange Board of India (SEBI) for delaying the demutualisation process and merely going against brokers by barring them from holding office in any exchange.

Talking to UNI, former Bombay Stock Exchange (BSE) Vice President, Ms Deena Mehta, said that it was expected that the SEBI would clear the entire demutualisation issue at its meeting held here yesterday and bring back the BSE to its original position.

But by merely announcing the decisions in respect of brokers, the capital market regulator has delayed the process of corporatisation of the BSE which has been run by public nominees after the resignation of the elected members from the BSE’s board, she said.

In the absence of directors on the BSE board, decisions on various issues were pending for want of due deliberations which had ultimately hampered the growth of the bourse, Mehta claimed and added that if no efforts were made on an urgent basis towards the demutualisation of the BSE, the very survival of Asia’s oldest exchange would be in danger.

The SEBI Board which met here yesterday discussed the issue of demutualisation of the stock exchanges and decided that no stock brokers will hold any position on the stock exchanges hereafter.

It also decided against nominating any SEBI official on the board of any stock exchange.

SEBI announced that the other administrative and legal modalities for the corporatisation and demutualisation of the stock exchanges are being worked out but did not gave any time frame for the samed. Another leading BSE member Motilal Oswal advocated a fast movement towards demutualisation by SEBI as well as the Government.

However, he did not offer his comments on the decision by the SEBI Board barring brokers from becoming office bearers of stock exchanges.

Former founder Managing Director of the National Stock Exchange (NSE), Dr R H Patil, expressed satisfaction on the SEBI Board decision and complemented the market regulator for taking the bold step.

‘At the last SEBI accepted my views that no broker should be allowed to run the bourse and it should be run by the professionals,’ he said.

Meanwhile, on condition of unanimity, a member of nse has pointed out to the discriminatory stand taken by SEBI.

He questioned that if NSE shareholders can be the directors on the Exchange Board then why cannot the same rule be applied to other exchanges.

He further said that if a provision has been made for the appointment of an Executive Director from outside at the exchange to look into the day-to-basis activities, then why has been the NSE exempted from this rule.

He said that there should atleast be a uniformity in the rules governing the exchanges.

Another broker pointed out that SEBI should have addressed the issue of strengthening the vigilance system at the stock exchanges by suggesting a separate vigilance agency rather than only barring brokers participating in the governing board. (UNI)

Markets continued to reel under war frenzy

MUMBAI, Dec 30: The Bombay and National Stock Exchanges continued to remain bearish in the week amid apprehensions that the continuing stand-off between India and Pakistan might escalate into a full-fledged war.

Uncertainty about the direction that these tensions might take have made the investors edgy and they opted to wait and watch before taking any position in the market, dealers said.

The 30-stock benchmark Bombay Stock Exchange (BSE) sensex closed 51.05 points lower at 3,184.44 on Friday compared to 3,235.49 of the last week’s close.

The S P CNX nifty of the National Stock Exchange (NSE) declined by 25.75 points to 1,025.10 against last Friday’s close of 1,050.85.

In the United States, the SP 500 rose 1.4 per cent for the week, the NASDAQ gained 2.1 per cent while the Dow Jones added one per cent in the week.

According to market sources, the fall during the week might also be attributed to the absence of foreign funds due to holiday season for Christmas.

However, towards the end, the nervousness in the market did appear to abate gradually as the market has already declined by about six per cent since the terrorist attack on Parliament on December 13.

The indices have shown a strong downward resistance at the present level and and as soon as markets fall there is a technical rebound in the markets, said a broker.

Among technology scrips, Infosys Technology gained Rs 66.40 at Rs 4,039.40, Satyam Computers rose by Rs 8.90 to Rs 223.30 and NIIT Ltd was up by Rs 15.60 at Rs 227.65.

Shares of cement companies were earlier down on profit-selling but they gained on the last trading day following an announcement of price hike in Maharashtra.

ACC was down by Rs 6.00 at Rs 144.05, Grasim shed Rs 17.55 to Rs 263.50 and Larsen & Tubro (L&T) fell Rs 7.15 to Rs 184.25.

Pharmaceutical and automobile shares also showed declines.

Cipla was down by Rs 42.20 to Rs 1131.40, Ranbaxy closed Rs 16.10 lower to Rs 672.55 while Dr Reddy Lab rose Rs 8.20 to Rs 916.10.

According to sources, the market is expected to see some activity during the next week as investors may like to pick some undervalued scrips. (UNI)

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