Today's Hot Stories - December 26, 2012
10 Headlines for Today
(1) Delhi rape: Traffic restrictions eased as protests calm down
(2) Rs37 lakh spent on room President Pranab Mukherjee used just for an hour
(3) World's longest bullet train service in China
(4) JLR China to recall cars for fixing brakes
(5) Federal Bank ups deposit rates by 0.50%
(6) Mahindra's joint venture plan with Rafael rejected
(7) T20I: Pakistan crush India by 5 wickets
(8) Rathore wins gold in shooting nationals
(9) Golf: Kapur crowned champion of Champions
(10) Eight Indians among world's best performing CEOs
5 Stories for Today
(1) Narendra Modi begins 4th innings as Gujarat CM
(2) Egypt constitution passes with 63.8% in referendum
(3) Royalty to parent companies earns investors' ire
(4) ArcelorMittal writes down Europe business by $4.3 billion
(5) Media & entertainment and NGO/social services sectors exhibit the highest sectoral growth
(1) Narendra Modi begins 4th innings as Gujarat CM
Narendra Modi took oath as the chief minister of Gujarat for the fourth time at the Sardar Patel Stadium here on Wednesday.
Governor Kamala Beniwal administered the oath of office and secrecy to Modi.
BJP top brass including LK Advani, Nitin Gadkari, Arun Jaitley, Sushma Swaraj, Rajnath Singh, Venkaiah Naidu, Ananth Kumar, Ravi Shankar Prasad, Madhya Pradesh chief minister Shivraj Singh Chauhan attended the swearing-in ceremony. Former Rajasthan chief minister Vasundhra Raje, Shahnawaz Hussain, Mukhtar Abbas Naqvi, Anurag Thakur, Smriti Irani, Prakash Javadekar and Navjot Singh Sidhu were also present to witness Modi's crowning moment.
Tamil Nadu chief minister J Jayalalithaa, Punjab CM Parkash Singh Badal, Maharashtra Navnirman Sena chief Raj Thackeray, Indian National Lok Dal leader Om Prakash Chautala and Shiv Sena chief Uddhav Thackeray also attended the ceremony.
A host of other non-political faces, including Bollywood actor Vivek Oberoi, his father Suresh Oberoi and actor Kirron Kher also attended the swearing-in ceremony.
Narendra Modi led the BJP to a comprehensive win in the assembly elections winning 115 of the 182 seats. The Congress emerged victorious in 61 seats. The Gujarat Parivartan Party (GPP) of former chief minister Keshubhai Patel could bag only two seats.
(2) Egypt constitution passes with 63.8% in referendum
The head of Egypt's election commission says the new constitution has passed with a 63.8% "yes'' vote in a referendum.
According to official results announced on Tuesday, 32.9% of voters participated.
The announcement turns the Islamist-drafted charter into the country's first constitution after the uprising that forced Hosni Mubarak out of office after nearly 30 years of authoritarian rule.
The opposition had campaigned against the constitution, charging that it will usher in Islamic rule in Egypt and restrict freedoms. It has vowed to challenge the results.
Judge Samir Abou el-Maati, the head of the electoral commission, denied allegations that judicial supervision was lacking in the vote.
The official results closely mirror unofficial results announced by the Muslim Brotherhood, the main group that backed the charter.
(3) Royalty to parent companies earns investors' ire
Huge royalty payouts by Indian subsidiaries are being termed an 'unfair' corporate practice, drawing increasing concern and attention from investors and shareholders. Since the liberalization in royalty fees and payments for foreign technology collaborations three years ago (December 2009), payouts by these subsidiaries have increased significantly, while their sales and margins have not grown proportionately.
The recent high royalty outgo by ACC and Ambuja Cements to parent Holcim has again brought the issue into the spotlight. An analysis of the 25 highest royalty-paying companies reveals that these payments more than doubled over five years, while sales have grown by just over 70%. As against this, the BSE 100 companies have, by far, performed much better than these 25 companies.
Concerns have been raised by shareholder advisory firms on high royalty payouts, given the fact that their local competitors are growing faster and earning higher margins. The analysis done by shareholder advisory firm, Institutional Investor Advisory Services (IiAS), since 2007-2008, shows that three companies with the highest royalty remittance of Rs 2,495 crore had paid Rs 784 crore as these fees in 2007-08. While remittance has gone up 3.2 times, their revenues have gone up by only 1.8 times. The top 20 royalty-paying companies now remit Rs 3,601 crore as royalty payments, up from Rs 1,196 crore five years ago. Total royalty for the 25 companies in the study increased to Rs 3,635 crore in 2011-12, up from Rs 1,528 crore in 2007-08.
Interestingly, four ( 3M India, Timken India, Whirlpool of India and Asahi India Glass) of the 25 companies have not paid any dividend in the last five years, but have paid royalty of Rs 385 crore since 2007-2008 (excluding one-off dividend payments).
The 25 companies paid on an average about 25% of profits as royalty to foreign parents in FY12. ABB and Maruti Suzuki topped the list with this ratio at over 200% and 100% respectively. Other companies such as Nestle India, Procter and Gamble, Alstom T&D and BASF India paid royalty in the 30-40% range of net profits. A note from IiAS says, "Data indicates that foreign sponsors are less concerned about the impact royalty payments have on the bottom line of Indian subsidiaries."
Says Shriram Subramanian, MD of proxy firm InGovern Research, "We recommend that institutional investors be very concerned when companies make high royalty payments to parents or group companies that cannot be justified."
(4) ArcelorMittal writes down Europe business by $4.3 billion
ArcelorMittal, the world's biggest steelmaker, is to write down the value of its European business by $4.3 billion, underscoring gloom about prospects for the region's recession-hit manufacturers.
The group, formed in 2006 when India-born Lakshmi Mittal's steel business bought European peer Arcelor for $33 billion, said on Friday demand had fallen about 8% in Europe this year and there was no sign of a quick recovery.
As a result, it will write down the goodwill - the value of intangible assets such as brands rather than physical assets such as machinery - of its European operations by 87%.
(5) Media & entertainment and NGO/social services sectors exhibit the highest sectoral growth
Around 16 of the 27 industry sectors monitored by the Monster Employment Index registered expansion in online recruitment activity between November 2011 and November 2012. Media & entertainment and NGO/social services sectors(up 36%) exhibited the highest annual growth among sectors.
In contrast, production and manufacturing(down 24%) showed the steepest annual decline.
"The Monster Employment Index India is carrying slightly less upward momentum than in October, but double digit gains on the year signal ongoing confidence by Indian businesses in the current economy. Sectors like engineering, construction; education, auto, healthcare have shown positive annual growth," said Sanjay Modi, managing director, Monster.com (India/ Middle- East/ South East Asia) in a release.
Online demand improved in eight of 13 occupational groups monitored by the Monster Employment Index between November 2011 and November 2012. Arts/creative(up 28%)followed by legal(up 14%) charted the most substantial annual gains amongst the occupational groups. Finance & accounts(down 8%) exhibited the steepest annual decline among occupation groups.
In terms of geography, online recruitment activity was up during the year for 12 of the 13 locations monitored by the index. Kochi(up 35%) followed by Jaipur(up 27%) led all cities in annual growth. Among major metro areas, Bangalore and Hyderabad(up 14%) registered the highest annual growth. Delhi-NCR(down 3%)exhibited steepest annual decline amongst occupational groups.
(1) Delhi rape: Traffic restrictions eased as protests calm down
(2) Rs37 lakh spent on room President Pranab Mukherjee used just for an hour
(3) World's longest bullet train service in China
(4) JLR China to recall cars for fixing brakes
(5) Federal Bank ups deposit rates by 0.50%
(6) Mahindra's joint venture plan with Rafael rejected
(7) T20I: Pakistan crush India by 5 wickets
(8) Rathore wins gold in shooting nationals
(9) Golf: Kapur crowned champion of Champions
(10) Eight Indians among world's best performing CEOs
5 Stories for Today
(1) Narendra Modi begins 4th innings as Gujarat CM
(2) Egypt constitution passes with 63.8% in referendum
(3) Royalty to parent companies earns investors' ire
(4) ArcelorMittal writes down Europe business by $4.3 billion
(5) Media & entertainment and NGO/social services sectors exhibit the highest sectoral growth
(1) Narendra Modi begins 4th innings as Gujarat CM
Narendra Modi took oath as the chief minister of Gujarat for the fourth time at the Sardar Patel Stadium here on Wednesday.
Governor Kamala Beniwal administered the oath of office and secrecy to Modi.
BJP top brass including LK Advani, Nitin Gadkari, Arun Jaitley, Sushma Swaraj, Rajnath Singh, Venkaiah Naidu, Ananth Kumar, Ravi Shankar Prasad, Madhya Pradesh chief minister Shivraj Singh Chauhan attended the swearing-in ceremony. Former Rajasthan chief minister Vasundhra Raje, Shahnawaz Hussain, Mukhtar Abbas Naqvi, Anurag Thakur, Smriti Irani, Prakash Javadekar and Navjot Singh Sidhu were also present to witness Modi's crowning moment.
Tamil Nadu chief minister J Jayalalithaa, Punjab CM Parkash Singh Badal, Maharashtra Navnirman Sena chief Raj Thackeray, Indian National Lok Dal leader Om Prakash Chautala and Shiv Sena chief Uddhav Thackeray also attended the ceremony.
A host of other non-political faces, including Bollywood actor Vivek Oberoi, his father Suresh Oberoi and actor Kirron Kher also attended the swearing-in ceremony.
Narendra Modi led the BJP to a comprehensive win in the assembly elections winning 115 of the 182 seats. The Congress emerged victorious in 61 seats. The Gujarat Parivartan Party (GPP) of former chief minister Keshubhai Patel could bag only two seats.
(2) Egypt constitution passes with 63.8% in referendum
The head of Egypt's election commission says the new constitution has passed with a 63.8% "yes'' vote in a referendum.
According to official results announced on Tuesday, 32.9% of voters participated.
The announcement turns the Islamist-drafted charter into the country's first constitution after the uprising that forced Hosni Mubarak out of office after nearly 30 years of authoritarian rule.
The opposition had campaigned against the constitution, charging that it will usher in Islamic rule in Egypt and restrict freedoms. It has vowed to challenge the results.
Judge Samir Abou el-Maati, the head of the electoral commission, denied allegations that judicial supervision was lacking in the vote.
The official results closely mirror unofficial results announced by the Muslim Brotherhood, the main group that backed the charter.
(3) Royalty to parent companies earns investors' ire
Huge royalty payouts by Indian subsidiaries are being termed an 'unfair' corporate practice, drawing increasing concern and attention from investors and shareholders. Since the liberalization in royalty fees and payments for foreign technology collaborations three years ago (December 2009), payouts by these subsidiaries have increased significantly, while their sales and margins have not grown proportionately.
The recent high royalty outgo by ACC and Ambuja Cements to parent Holcim has again brought the issue into the spotlight. An analysis of the 25 highest royalty-paying companies reveals that these payments more than doubled over five years, while sales have grown by just over 70%. As against this, the BSE 100 companies have, by far, performed much better than these 25 companies.
Concerns have been raised by shareholder advisory firms on high royalty payouts, given the fact that their local competitors are growing faster and earning higher margins. The analysis done by shareholder advisory firm, Institutional Investor Advisory Services (IiAS), since 2007-2008, shows that three companies with the highest royalty remittance of Rs 2,495 crore had paid Rs 784 crore as these fees in 2007-08. While remittance has gone up 3.2 times, their revenues have gone up by only 1.8 times. The top 20 royalty-paying companies now remit Rs 3,601 crore as royalty payments, up from Rs 1,196 crore five years ago. Total royalty for the 25 companies in the study increased to Rs 3,635 crore in 2011-12, up from Rs 1,528 crore in 2007-08.
Interestingly, four ( 3M India, Timken India, Whirlpool of India and Asahi India Glass) of the 25 companies have not paid any dividend in the last five years, but have paid royalty of Rs 385 crore since 2007-2008 (excluding one-off dividend payments).
The 25 companies paid on an average about 25% of profits as royalty to foreign parents in FY12. ABB and Maruti Suzuki topped the list with this ratio at over 200% and 100% respectively. Other companies such as Nestle India, Procter and Gamble, Alstom T&D and BASF India paid royalty in the 30-40% range of net profits. A note from IiAS says, "Data indicates that foreign sponsors are less concerned about the impact royalty payments have on the bottom line of Indian subsidiaries."
Says Shriram Subramanian, MD of proxy firm InGovern Research, "We recommend that institutional investors be very concerned when companies make high royalty payments to parents or group companies that cannot be justified."
(4) ArcelorMittal writes down Europe business by $4.3 billion
ArcelorMittal, the world's biggest steelmaker, is to write down the value of its European business by $4.3 billion, underscoring gloom about prospects for the region's recession-hit manufacturers.
The group, formed in 2006 when India-born Lakshmi Mittal's steel business bought European peer Arcelor for $33 billion, said on Friday demand had fallen about 8% in Europe this year and there was no sign of a quick recovery.
As a result, it will write down the goodwill - the value of intangible assets such as brands rather than physical assets such as machinery - of its European operations by 87%.
(5) Media & entertainment and NGO/social services sectors exhibit the highest sectoral growth
Around 16 of the 27 industry sectors monitored by the Monster Employment Index registered expansion in online recruitment activity between November 2011 and November 2012. Media & entertainment and NGO/social services sectors(up 36%) exhibited the highest annual growth among sectors.
In contrast, production and manufacturing(down 24%) showed the steepest annual decline.
"The Monster Employment Index India is carrying slightly less upward momentum than in October, but double digit gains on the year signal ongoing confidence by Indian businesses in the current economy. Sectors like engineering, construction; education, auto, healthcare have shown positive annual growth," said Sanjay Modi, managing director, Monster.com (India/ Middle- East/ South East Asia) in a release.
Online demand improved in eight of 13 occupational groups monitored by the Monster Employment Index between November 2011 and November 2012. Arts/creative(up 28%)followed by legal(up 14%) charted the most substantial annual gains amongst the occupational groups. Finance & accounts(down 8%) exhibited the steepest annual decline among occupation groups.
In terms of geography, online recruitment activity was up during the year for 12 of the 13 locations monitored by the index. Kochi(up 35%) followed by Jaipur(up 27%) led all cities in annual growth. Among major metro areas, Bangalore and Hyderabad(up 14%) registered the highest annual growth. Delhi-NCR(down 3%)exhibited steepest annual decline amongst occupational groups.
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