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HONG KONG, Nov 7: Asia pacific companies have reacted to the global economic downturn this year by offering lower......more S
P classifies Indian NEW DELHI, Nov 7: International rating agency Standard and Poor’s has classified Indian banking system as a ‘high risk’.....more TCS
and WIPRO BANGALORE, Nov 7: IT majors TCS and WIPRO have bagged a major multi-million dollar annual.....more Excelsior Correspondent NEW DELHI, Nov 7: Neva Garments Ltd, the company which pioneered the concept of Thermal inner-wear in India has now launched ESANCIA—a new .......more |
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Assocham seeks changes in provisions for ownership change NEW DELHI, Nov 7: The Associated Chambers of Commerce and Industry of India (Assocham) has.........more Swaminathan calls for THIRUVANANTHAPURAM, Nov 7: Renowned agriculture scientist M S Swaminathan today called.......more New fleet management system with Israeli collaboration NEW DELHI, Nov 7: More States have started showing interest in a modern fuel and fleet manage....more Planning Commission NEW DELHI, Nov 7: Confronted with the challenging task of doubling per capita income and accelerating ....more |
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HONG KONG, Nov 7: Asia pacific companies have reacted to the global economic downturn this year by offering lower salary increases or freezing pay, even as the Indian Information Technology (IT) sector recorded the strongest wage increase of 16.4 per cent this year, a survey revealed today. India was followed by the Philippines, China, Korea and Indonesia which offered average salary hikes of between 6.4 per cent to almost 10 per cent, the survey conducted by consulting firm Hewitt Associates showed. The most widespread wage freezes this year were experienced in Hong Kong where 45 per cent of companies held pay steady, followed by Indonesia with 33 per cent. China and Thailand had the lowest number of firms imposing salary freezes with seven per cent and eight per cent respectively. "The relatively higher average salary increases witnessed in China, India and Korea reflect the rapid development of these economies and continued foreign investment, despite the global downturn." Companies from the developed economies of Hong Kong and Singapore followed the trend established over the past two years, by offering the lowest average salary increases ranging between 0.6-1.8 per cent and 2.1-2.9 per cent respectively. Most companies surveyed projected a slight rise in salary increases next year, except South Korea which expected salaries to remain flat overall. Indonesian employers were the most optimistic with salaries tipped to soar almost 12-14 percent next year, compared with gains of 6.4-9.7 percent in 2002. Around one in four of all companies in the region expressed concerns about attracting and retaining suitable employees. Companies in mainland China were the most affected with some 52 per cent of respondents concerned about their ability to attract quality employees to fill sales, marketing and engineering positions. Other countries deeply affected by the issues of attraction and retention were India, Korea and Thailand. "There is still a talent crunch in countries with developing economies such as China, India and Korea," said Bennett. Hewitt surveyed 1,007 foreign, locally-owned and joint-venture firms between July and September in 13 countries. (AFP) |
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S P classifies Indian banking system a ‘high risk’ sector NEW DELHI, Nov 7: International rating agency Standard and Poor’s has classified Indian banking system as a ‘high risk’ sector among the Asia-pacific countries, though China, Vietnam and Indonesia come under the ‘highest risk’ category. Also joining the high risk category with India are the Phillippines and Thailand, according to the S P’s latest economic and industry risk profiles of the banking systems in the Asia-pacific region. "Risk escalates significantly in the banking systems of India, the Philippines, and Thailand, which are classified as high risk," it said. However, the systems in mainland China, Indonesia, and Vietnam have the highest risk of all, it said. The agency said the Indian economy was marked by the tension between market forces and bureaucratic indolence, giving rise to inefficiency not only in the economy but also in the banking sector, which remains largely state-owned. "While there have been several initiatives to speed up legal and regulatory reform, the pace remains slow. Conversely, the system’s inertia does lend it a degree of stability compared with other socialist-inclined banking systems, such as those in China and Vietnam, which are becoming more commercially-oriented, with all risks implied in such a re-orientation," it said. "Not surprisingly, the economic and industry risks of the Asia-pacific banking systems vary widely," said Ian Thompson, managing director, financial services ratings. "The banking industries in Australia, New Zealand, and Singapore stand out as having the lowest risk among the Asia-pacific systems, while Hong Kong is next with a moderate risk profile," Mr Thompson said. The banking sectors of Japan, Korea, and Taiwan have better economic risk than they do industry risk and hence have moderate to moderately high risk profiles. They are followed by the banking sector of Malaysia, which has higher economic risk. The review said transition of China and Vietnam from command to socialist-market economies implies a high degree of economic risk. ‘Economic checks and balances, including established market price mechanisms, are much less likely to be developed to the extent that they have been in more mature market systems," it said. Given the residual level of loans extended on a non-commercial basis by state-owned banks in China and Vietnam, the inherent asset quality risk in both banking systems is very high. "The state-owned banks in both systems, especially China, are seeking to correct this by becoming more commercial, but as banks are highly-leveraged entities, the capital bases of such banks do not permit a rapid resolution of nonperforming loans by way of write-offs,"it said. Standard Poor’s defines economic risk, in the context of a banking system, as the risk level of a country’s economy as it affects financial institutions, as opposed to the country’s own credit quality. Included in IT are the economy’s strength, diversity, and volatility the financial health of the corporate and individual sectors and the government’s ability to manage the economy through boom and recessionary periods. The industry risk category contains many elements, and for any system there will be both positive and negative factors. While it is difficult to say which factors will outweigh others in any one system, generally Standard Poor’s gauges the dynamics of the financial service industry and to what extent those dynamics lead to more or less risk from the debtholders’ or counterparties’ point of view. (UNI) |
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TCS and WIPRO win multi-million outsourcing order BANGALORE, Nov 7: IT majors TCS and WIPRO have bagged a major multi-million dollar annual outsourcing order from Blue Chip global investment banker Lehman Brothers, a top WIPRO official said today. The deal came about last week, president, Finance and Insurance, WIPRO Technologies, Girish S Paranjpe, told PTI here. He said the investment banker would outsource IT work annually to both TCS and WIPRO and it would be split between the two. Paranjpe declined to comment on reports that it’s a USD 50 million to USD 70 million annual order, saying "it’s an internal matter" of Lehman. Lehman Brothers’ main outsource work was application-related and infrastructure management, he said. TCS sources said it was an open-ended agreement and the potential was huge, noting that TCS has been working with Lehman Brothers for sometime. The sources, however, declined to comment on the value of the deal.(PTI) |
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Excelsior Correspondent NEW DELHI, Nov 7: Neva Garments Ltd, the company which pioneered the concept of Thermal inner-wear in India has now launched ESANCIA—a new range of international quality Thermal innerwear for men and women in the J&K state. According to Chairman of the Company Mr N K Jain, positioned as the perfect safeguard against shivering cold, Neva new range is made of polyfill sandwiched between two layers of cotton using the special CPS Technology in technical assistance with Euro Max Clothing Company Inc of USA. ESANCIA is more warmer than even woolen thermals , yet very light weight and highly comfortable. But silicon finish makes it more comfortable. The new range with its standards of premium quality , affordable prices and superb performance is all set to change the face of thermal innerwear market in India. It is targeted at the middle class segment and will offer these flannel with quality product at an affordable price. Neva thermal innerwear is made of high quality material ribbed ribbed with Lycra. Specialised treatments are given to the fabric to ensure that thermal is warmer yet very light weight and highly comfortable. It is also available in Jammu, Srinagar and Katra. Mr Jain said the company with its aggressive marketing strategy and thrust on quality has created a niche for Neva range of thermal innerwear in India. The company has also a complete range of high quality summer inner wears like briefs, Ves’ts, Panties, Crewshirts, boxer, camisoles and socks targeted at premium and upper middle segment |
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Assocham seeks
changes in provisions for NEW DELHI, Nov 7: The Associated Chambers of Commerce and Industry of India (Assocham) has suggested replacement of the current provisions in the companies act restricting change of ownership of companies by anti-abuse measures such as mandatory continuity of business with assets including substance tests for ownership change. The chamber stated that under the current provisions entities enjoying tax incentives under section 10a and 10b of the income tax act, 1961 stand to lose these incentives, if there is a change in ownership interest by 49 per cent or more. This anti-abuse measure has been partially relaxed in the union budget but in most cases of change in ownership, even pursuant to a court approved merger or demerger, the entire tax incentive stand forfeited. Further, under the prevailing tax laws, past tax losses of companies not owning ‘industrial undertakings’ are lost in a merger. On the other hand, past losses of companies owning ‘industrial undertaking’ are given a fresh lease of life for a further period of eight years. Industrial undertakings are defined in the income-tax act, 1961 in a restrictive sense. Although the apex court has tried to interpret this term liberally, as the law currently stands, service companies, trading companies and non-manufacturing entities lose their past tax losses if they merge. The restriction greatly hampers any effort for restructuring of these entities. Assocham recommended that it is essential to widen the ambit of this definition. Alternatively, such losses may be transferred to the merged entity and allowed to be carried forward for their remaining duration (if a fresh lease of eight years is considered by the government as an incentive to be restricted to a new identified sector) in a manner similar to that prescribed for demergers. The chamber felt that to prevent trading in tax losses, the Government had introduced provisions restricting carry forward of tax losses, in a situation where there is a change of more than 49 per cent shareholding of a closely held company. This anti-abuse provision, when applied en-masse, sweeps in its ambit a whole host of genuine restructuring. Assocham said that it is clear that transanctions within the same group, often with the same parent entity were clearly not intended to be covered within the anti-abuse provision. Although, this provision provides for an exception for change in shareholding of companies on parent company restructuring, this benefit is available only to foreign parents. The Government should consider extending this to indian companies as well, the chamber suggested. (UNI) |
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Swaminathan calls for national
commission THIRUVANANTHAPURAM, Nov 7: Renowned agriculture scientist M S Swaminathan today called for constituting a national commission on genetic modification for food security to ensure transparency in research objectives and outputs. Delivering the C V Raman Memorial lecture at the 12th Swadeshi Science Congress, he said modern biotechnology could help in meeting various challenges in a socially meaningful manner. "Unfortunately, the pace of progress in the evolution of new technologies is much faster than the evolution of societal understanding of their implications. This mismatch beteen technological progress and societal understanding of change is at the heart of the ongoing conflict between the "do" and "doom" environmentalists," the expert said. This can be resolved only through dialogue, transparency in research objectives and outputs, and mutual learning and respect. A broad-based national commission on genetic modification for food security, with representation to public and private sector scientists, civil society and consumer action groups, women’s associations, environmental NGOs, business and industry, Government agencies and mass media, could solve these problems, he added. Stating that global agriculture was in a state of transition, he said several issues like demographic changes, technology, ethics, equity and ecology needed attention in the overall strategy for managing change. Noting that youth constituted the majority of the population of developing countries, Dr Swaminathan said "if educated young men and women are to be attracted to farming, agriculture has to be both intellectually stimulating and economically rewarding. For this, agriculture has to become more knowledge and not chemical or capital intensive." Challenges in this area of technology revolved around steps designed to help bridge the growing digital and genetic divides. For this purpose, there has to be an agreed and transparent mechanism for assessing risks and benefits in relation to genetically-modified crops. The economic challenge with reference to a level paying field in trade was increasing because of the two farming cultures seperating the industrialised and developing worlds. The revised WTO agreement in agriculture, following the doha ministerial conference held in November 2001, should ensure that trade was not only free but also fair. The ethical challenge relates to an expanding intelsectual property rights environment in scientific research. Patents would make vital discoveries exclusive and will result in social exclusion with refernece to sharing the benefits of discoveries important in food and health security. This would further increase the rich-poor divide. The ethical aspects also relate to farmers’ rights, prior informed consent and benefit sharing with reference to biodiversity. "If these issues are not resolved, accusations of biopiracy will grow. We need to foster mutually beneficial biopartnerships and eliminate biopiracy. "We should work towards an ever-green revolution rooted in the principles of ecology, gender and social equity, economics and employment generation," he added. (UNI) |
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New fleet management system with Israeli collaboration NEW DELHI, Nov 7: More States have started showing interest in a modern fuel and fleet management solution project being implemented with Israeli technical collaboration. Triad Fleetcontrol Pvt Ltd, an Israeli joint venture with Andhra Pradesh Industrial Development Corporation Venture Capital Ltd is offering a cost effective Automated Fuel Management System(AFMS), which involves the convergence of various technologies including radio frequency, communication, electronics, and computing, besides digitalisation of existing functions of fuel and fleet management. This enables the collection, storing and tabulation of data leading to improved efficiency of fleets, reduced wastage and saving on fuel costs. The company has completed the first stage of a pilot project in Andhra Pradesh and Karnataka. The Governments of Punjab, Kerala, Rajasthan and Tamil Nadu have shown keen interest in this system, Triad Director Bunty Pasricha told UNI. The mining industry and oil industry also have shown interest in this, besides transport companies, he said. Named Autoring, the system also covers fuel management in vehicles and storage bunkers, preventive maintenance programmes and data on driver patterns and practices. The system aids in planning preventive maintenance schedules and monitors drivers’ speeding patterns in the form of histogram or tachograph, whch can be used in drivers’ education programmes. Autoring generates information on quantity of fuel received from tankers, current stock of fuel as well as water content in the bunker thereby enabling effective management of supply and quality. The system offers fleet managers a tremendous saving from fraud, pilferage, spillage and poor vehicle maintenance, Mr Pasricha said. The fuel monitoring at different stages avoids chances of manipulation. The benefits help the fleet operator to increase km per litre, he said. The readings on kilometres run and engine hours logged can provide a well-planned preventive maintenance programme, he said. The results in reduced breakdowns, reduction in spares inventory costs and reduced disruption of schedules. This system, developed by roseman of Israel, has been successfully operated in Isarel, Brazil, Singapore and North America, he said. (UNI) |
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Planning Commission for 18 pc hike in GBS for next fiscal NEW DELHI, Nov 7: Confronted with the challenging task of doubling per capita income and accelerating GDP growth to 8 per cent per annum, Planning Commission is understood to have sought a whopping 18 per cent increase in gross budgetary support for the 2003-04 annual plan. Urging for a quick approval of Rs 1,34,064 crore of Gross Budgetary Support (GBS) as against the level of Rs 1,13,600 crore for the current (2002-03) annual plan, the commission said any shortfall in the GBS would affect public investment. Deputy Chairman of Planning Commission, K C Pant, in a letter to Finance Minister Jaswant Singh is understood to have asked the latter to approve the hike by the first week of December as the budgetary support to the plan has to be communicated to both the Central ministries/departments and the State Governments. Stating that the process of recovery of the economy from a prolonged slowdown hinged upon a sustained increase in public investments, Pant said any shortfall could affect investments in the key infrastructural sectors like power, roads and irrigation. Pant is understood to have cautioned Singh of a setback in the process of recovery and difficulty in accelerating growth in case the hike is not approved. In the approach paper approved by the National Development Council (NDC), the GBS for the entire tenth plan (2002-07) has been estimated at Rs 7,06,000 crore at the base year (2001-02) prices. This was also ratified by the full Planning Commission meeting headed by Prime Cinister Atal Bihari Vajpayee on October 5, this year. Though indicative annual allocations of GBS for the tenth plan have been computed in a manner so as to obviate fiscal stress, greater allocations are necessary to achieve the social and human indicators as approved by the NDC, Pant is understood to have told the Finance Minister. The mandated objectives for the tenth plan include doubling of per capita income in ten years and growth rate of GDP of 8 per cent per annum, pant said adding this could be possible only by injecting larger public investments in infrastructure sectors. The proposals of the union ministries and departments would be discussed together for both the central sector plan and state plans around december and January, he is understood to have told Singh. This, he said, is to ensure that the process is completed in time for incorporation in the Union budget and the scheduled launching of the annual plan 2003-04 on April 1, 2003. (PTI) Wipro along with TCS wins BPO deal from Lehman BANGALORE, Nov 7: Wipro Technologies along with Tata Consultancy Services has bagged a 70 million-dollar Business Process Outsourcing (BPO) project worth about 70 from global investment banker Lehman Brothers. Considered to be a major outsourcing tie-up, the win not only involved software outsourcing but also offshore management of IT infrastructure of Lehman Brothers, Wipro Technologies President (Finance and Insurance) Girish Pranjpe told UNI here. He said the deal covered the entire global operations of Lehman Brothers. Mr. Pranjpe said Lehman Brothers took about six months to decide on the deal after wipro along with other companies in the reckoning offered pilot projects. Asked about the nature of joint operations with TCS to execute the project, he said it was yet to be decided. Another Indian software major Infosys Techgnologies was also in the race. However it lost out as it did not make the grade on the sales front, according to reports. Stating that it was a very happy situation for Wipro to win the deal, Mr Pranjpe said that it also highlighted the end to end capability of Wipro. (UNI) State to purchase power from Enron MUMBAI, Nov 7: The Democratic Front (DF) Government in Maharashtra has decided to purchase 83 per cent of the total 658 megawatt electricity generated from the first phase of Enron’s Dabhol Power Project at Rs 2.80 per unit to tackle the current power crisis being faced by the state. The decision was taken by the State Cabinet in a meeting held here today, which has approved the ‘passing through’ of the fluctuation in the price of ‘naphtha’ fuel to the customer. Hence, the fluctuations in the price of naphtha in the international market will reflect in the electricity tariff. (UNI) |
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