 |
| Monday,
October 30, 2000, Chandigarh, India   
|
‘Direct selling’ turns on Haryana
youths Rules
altered; Zee withdraws from FM race New Zealand keen on buying apples
Dubai Internet
City launched |
|
|||||||||||||||||||||||||||||||||
|
Net surfing for
fun and beyond
Two nice picks: Pentamedia, Moser Baer
|
|
‘Direct selling’ turns on Haryana
youths HISAR, Oct 29 — The proverbial great “American dream” is sweeping jobless youths in Haryana off their feet with promises of making them rich in a short time. While it remains to be seen how many of them ultimately become “crorepatis”, the dream of becoming one is changing the face of rural life in the state where the jobless do not think twice before picking up a gun to earn a living. A US multinational company has roped in thousands of them for direct selling of its consumer products. The craze has caught up so much that one finds necktie-wearing youths attending typically American business and motivational meetings in remote villages sharing their experiences and learning to smile for some hardsell. The dream runs something like this. You buy a business kit generally costing Rs 4,200. This includes Rs 2,600 worth of consumer products and Rs 1600 for Product Demonstration Book, motivational audiocassettes etc. The company encourages you to use the products in your home so that you learn first-hand “how well they perform” as it makes it easier for you to tell others about them. In turn you sponsor nine others who buy the same kits. The assumption further goes to say that each of these nine sponsors six more people. Further down the line each of these six sponsors three more people. As soon as that happens, you stand to earn a minimum of Rs 5,74,560 a year at current rates and percentage of your profit for all times to come. The company says that this is just one assumption. If your “downline” keeps expanding your share of profits goes up correspondingly. What has proved especially alluring for the youth is the “low start up cost, no risk and permanent unlimited ongoing income”. The company claims to be “an international legal business which has spread to 87 countries. The company documents say it did business worth $ 7.2 billion worldwide in 1997. It has offices in several towns in India, including one in Chandigarh. The company maintains that it saves money through direct selling because on an average a product, which costs ex-factory 30 paise, sells for Re 1 because of overheads like commissions for wholesalers, retailers and advertisement. The money saved is passed on to the sponsors eliminating all intermediaries. It also claims that its products, which include home and personal care products, are “health safe, biodegradable and environment friendly”. These are in concentrated form and not available in the open market. Though initially these cost much more than other popular brands because of high concentration, in the long term these cost less because you use less quantity. Those who have used the products say the claim is not an exaggeration. However, most of these products are meant for the urban consumer. Nevertheless, the dream has attracted both rural and urban jobless. Mr Sumer Singh (not his real name) had been jobless after getting a degree in veterinary sciences before he heard of the great American dream. Six months in the job and he is hoping to soon become a Double Diamond which in company parlance means one who has reached the level of earning the highest percentage of profit. He is so motivated by the audio cassettes and other literature given to him by the company that he almost ended up selling a kit to this correspondent during a chat on his business. There is no dearth of others like him. The early birds in the business have translated the literature circulated by the company into Hindi to make things easier for those down their line. Others have produced it in the more practical Hinglish. Enquiries made by The Tribune reveal that the youths leave for work early. The routine includes regular meetings with their colleagues, their ‘downliners’ and potential sponsors. Village elders are extremely happy. “My grandson may not end up a millionaire, but, I am happy he is toiling to make a career rather than take up the easier option of wielding a gun and robbing people,” said Mr Rameshwar Singh of Kirmara village near here as his fellow villagers nodded in approval.
|
|
Rules
altered; Zee withdraws from FM race NEW
DELHI, Oct 29 (PTI) — Media giant Zee’s radio company New Media
today accused the government of abruptly changing rules of the fm
radio licensing process and said it was withdrawing from the arena. New Media, which had
bagged the largest number of 29 stations of the total 108 fm stations, has now asked the government to refund the earnest money deposit as well as the advance licence fee amounting to about Rs 7 crore. “We will not be taking part in the fm business now. The government has changed rules of the game and repeated attempts to negotiate have failed”, Chief Operating Officer (CEO) of New Media Deepak Shourie told
PTI. Zee’s withdrawal comes close on the heels of Star TV's announcement that it would tie up with Ispat group’s Music Broadcast for providing content for the latter’s fm ventures. The announcement by Zee comes amidst reports that other leading licensees, including Reliance and Nimbus, were also opting out of the fm race, but officials of the two companies could not be contacted for comments. Earlier this month Zee, Reliance, Nimbus along with other licensees had complained to the government against inconsistencies in the licensing process and demanded remedial measures even as the government asked applicants to furnish bank guarantees for their licence circles within the stipulated period. Shourie said that there were substantial differences between tender conditions and those mentioned in the letters of intent but declined to give details. Denying reports that the Information and Broadcasting Ministry had resolved Zee’s grievances, Shourie said “We are not interested in the licence now, specially after the government did not even reply to our repeated requests to reconsider the changed rules”. In a letter to the I&B Ministry last month, a group of licensees had objected to a clause which empowered the government to take possession of all of the licensee’s assets. “The licensor may, without prior notice, take possession and control over all the licensee’s assets in the event of termination of the licence pursuant to breach by the licensee and may issue a licence to fresh party. The tender condition did not envisage this,” it said. According to the licence holders, the government cannot take over their property or assets after termination of the licences without paying any compensation. Yet another bone of contention was the prohibition to assign the licence in any manner whatsoever to another party and the letter clarified that this restriction would
severely impact financing of the business as the lenders would normally require a pledge of the licence in their favour. Such a restriction was not contemplated in the tender, the licence holders
quipped. |
|
New Zealand keen on buying apples NEW
DELHI, Oct 29 (UNI) —New Zealand, a major apple producing country, wants to buy Indian apples to meet its domestic demand during the off-season period. Mr Adrian Simcock, New Zealand High Commissioner, told
UNI that he was keen to promote an India-New Zealand two-way trade in this highly traded fruit variety. India has emerged as a significant buyer of New Zealand apples in the face of a poor crop last year. About 20 containers of New Zealand apples were imported this year to meet the domestic short supply. Mr Simcock said the Indian apple producers and exporters should take advantage of the emerging liberal trade
opportunities and cater to the New Zealand market, which buys lot of apples from South Africa and France during the months just before Christmas. However, the Indian exporters would have to adhere to New Zealand’s quality specifications and packaging norms, he pointed out. Mr Peter Healy, New Zealand Trade Commissioner in Delhi, said that there could be good seasonal complementarity in the apple trade between the two countries as the crop in each country gets ready in different months. The apple crop in India is harvested in September-October when New
Zealand depends on apples from other countries. Likewise, the New Zealand apples are harvested in February-March when apples are absent in the Indian market. Mr Healy pointed out that New Zealand firms would provide the necessary technological back up for growing, grading and exporting of apples from India. Some of those companies are world leaders in this business. This would also help India to export its apples to other sophisticated markets like the Europe and Japan, he added. |
rc
Dubai Internet City launched DUBAI, Oct 29 (UNI) — Dubai Internet City (DIC), the world’s first free trade zone for electronic business, was launched here last night as part of the emirate’s initiative to become a regional hub for technology firms. At a glittering ceremony last night, Sheikh Mohammed Bin Rashid al Maktoum, Dubai crown prince and UAE Defence Minister, formally inaugurated the Internet city, spread over an area of 25 sq km. “In future all commercial actions will be in
cyberspace. But the cyberworld will need a ground base in this physical world. Internet companies will need physical offices, a community and on the ground technology I want Dubai to be the best location in the world for any and every individual company — Sheikh Mohammed said. The city built at an astounding cost of more than 270 million US dollars has taken just 364 days to be completed.
Already, over 190 companies, including Microsoft, Oracle, Compaq, Commerce One and Mastercard, have been licensed to operate in the Internet city. More than 3000 qualified professionals are expected to function from this complex. Officials at the Internet city said the DIC would offer foreign companies 100 per cent ownership and long-term land leases, and would be essentially a free-trade zone for e-commerce. They said plans for the city included the establishment of an Internet university — offering short courses in e-commerce, design and management — a research and development centre, as well as a science and technology park. The Internet City would enable the smallest of the companies to sell into hundreds of markets without having any physical presence there. With zero bureaucracy, the city would have hassle- free registration laws, company laws and a business-friendly legal framework. Net surfing for
fun and beyond NEW
DELHI, Oct 29 — Though they were late in coming, they have invaded the cyberworld. Indian dotcoms have virtually entered every field — from art to pornography and from astrology to matrimony — in less than a year. Most came after the fear of the Y2K bug disappeared. Surfing the Net is a revelation in itself as the Net seems to be serving even fields beyond one’s imagination. There are at least 10 sites for mouth-watering Indian recipes or simply getting a table at your favourite restaurant, five or six sites for booking cinema tickets in theatres, more than a dozen matrimonial match-making portals, and almost 10 on astrology, not to forget several “yellow pages” and the specialised telephone directories. “Vedicprediction.com” actually has a diy (do it yourself) section where those surfing the Net can feed their personal information and get forecasts, births and deaths, lucky numbers and so on. The site set up by Aakriti Infotech and its Chief Executive officer A.K. Kohli with the help of some renowned vedic scholars, also gives details about the effects of the solar system and the stars, herbal remedies for common ailments, matchmaking services and even a facility to send Vedic messages to others. “Bridegrooms4U.com” is not just a site where one can look for the right bride or groom, but gives important tips on beauty, jewellery, garments, honeymoon spots. This marriage portal designed by Sanjay Jani and Sunil Gauri of Ellora Advertisers, also gives information about free honeymoon packages. “Ekhwabs.com” is a multi-purpose site which not only gives information about
Indian and neighbouring countries, but provides over 100 services, including a marriage portal for inter-continental marriages. A youth specific entertainment portal, “Apunkachoice.Com” is the latest among over 50 Bollywood-based web sites that not only give you reviews, previews, photographs, and music, but also a peep into the private lives and times of the stars of the silver screen. Set up by Indiaexpress.com, it enables the surfer to set up a homepage, send messages to others and get answers to questions sent to stars. In an attempt to create greater community feeling based on trust, “Andhernagri.com” enables people to share their views and opinions on listed issues, products and services and make transactions more convenient for people. The Mindshare Technologies site also has a member stock ownership plan. The site “Indianartcircle.com” is a comprehensive window for promoting Indian arts and crafts globally and has been set up by prominent artists. — UNI |
sti
By J.C. Anand Two nice picks: Pentamedia, Moser Baer THE downward trend in the stock market has been halted but there are no prospects of any bull rally in the coming
months. The Divali trading lacked warmth and sparkle. It presaged a weak market in the coming
months. The market sentiment is low due to the poor results announced by many sectors of industry, the depreciating exchange value of the rupee against the dollar and the very high price of the petroleum in the international
market. The West Asian crisis is deepening, and any further deterioration would lead to escalation in the oil
prices. The third quarter results may be even lower than the second half
results. The old economy shares have received an almost unprecedented drubbing and only about 10 per cent of the old bluechip scrips have been able to keep afloat. Any investment made at this time should be on long term plans and future
returns. The term “long-term” should be taken to mean at least one to two years
time. Larsen & Toubro, Mahindra & Mahindra, Tata Tea and HLL are some of the scrips which can reward a long-term investors with good
returns.TISCO may also be added to the list. As indicated in the last week’s
column,Vikas WSP should cross Rs 600 even during the current financial year. Two other scrips are being recommended this week for
investment. The first one is Pentamedia Graphics. It is the acknowledged leader in animation, special effects and
graphics. With an equity capital of Rs 39.94 crore, the Rs 10 face value scrip has a book value of Rs 323.99 on the basis of its second quarter results. Its first six-month results indicate a net profit of Rs 66.63 crore as against Rs 46.82 crore for the corresponding period last year. It had net profit of Rs 170.33 crore for the accounting year ended March 31, 2000. This may be exceeded for the year ended March 31, 2001.EPS for the current half year is Rs 16.68 (not annualised). Recently, Pentamedia has entered into a contract for a 51 per cent holding in equity with Film Roman, a leading player in television animation in
USA.This US company has been a recipient of 10 Emmy Awards and 23 nominations. This
investment would embark Pentamedia on international conquests and make it a leading player in the global market. Last week, this scrip was quoting around Rs 316, 332 but now it is available around Rs 353.This scrip holds the promise of short-term market appreciation as well as handsome returns as long-term investment. The second share to be recommended this week is Moser
Baer, which as the management claims, is one of the world’s largest makers of optical and magnetic storage
media. It has an equity capital of Rs 311.80 million with reserves of Rs 1556.91 million. Its second quarter results have been excellent; it has declared a net profit of Rs 321.80 million as against Rs 80.50 million for the corresponding period last year. Its equity capital has, however, increased now to Rs 468.06 million due to the issue of 1,249,998 equity shares of Rs 10 each at a premium of Rs 330 per share and 1,600,002 convertible warrants (Rs 34 paid) warrants to Bloom Investment and two other investment companies which are affiliates of E.M.Warburg Pincus and Co. It has also entered into a contract with an international leader for the sale and production of audio cassettes with the “BASF” brand. The scrip is quoting around Rs 330 or so, though it has been fluctuating during the recent weeks in the range of Rs 320 to Rs 430.It appears to have great future and is able to compete with Taiwan producers on more favourable terms.The management is striving to make it as one of the three top companies in the world in optical and magnetic storage media. |
ty
by R. N. Lakhotia * House building loan * MIS account * Leave encashment Q: I am working in PSEB and my wife is working in Punjab Government. We have taken house building loan from LIC Housing Finance Ltd. in our joint name. The amount of loan to be paid by us in the financial year 1999-2000 comes out as under: Towards principal amount Rs 20,000. Towards Interest Rs 6,857. Out of above I want to claim the rebate on interest amount paid as I have already crossed saving limit of Rs 60,000 and comes in the tax slab of 30 per cent and my wife wants to take the rebate of principal amount as her saving is less that Rs 60,000. Please clarify whether we can claim the rebate as above separately on the same receipt of loan issued in our joint name by LIC. — Surinder Kumar, Patiala Ans: Strictly speaking, the tax rebate will be available to both of you on equal amount on account of principal amount as well as interest amount because you are both co-owners of the property and the loan is also in the joint names. It is recommended that in joint property and joint loan the repayment, etc. should be made jointly of equal amount so that there is no case of direct or indirect gift. Q: I am a Government pensioner and my wife is a housewife having no income. We have jointly opened an M.I.S. account in the Post Office with first name of mine and second name of my wife. In this connection kindly clarify as to whether the liability of income-tax on this income will be mine or will be shared by us fifty fifty. In case it is to be shared by us how will it be reflected in the I.T. Return. — Raminder Singh, Patiala Ans: On the facts stated by you, the income from post office MIS Account should be shown in your income and should be fully treated as belonging to you because your wife is merely housewife and she does not have her sufficient funds to prove the investment made in MIS Account. Therefore, it is advised to you that the entire income accruing of MIS Account in the post office should be shown by you in your income-tax return. Q: I am a bank employee. I have encashed one month leave in Nov.’ 99. Please advise whether it is taxable or not. We come to know that it is not taxable from Aug. 1999. Please clarify. 2. I am a bank employee. I live in my own house which I constructed with the bank loan. Bank pay me house rent @ Rs 9.5 per cent on my basic pay. Please advise whether it is taxable or not. — Mohinder Kumar Mittal, Doda Ans: The encashment of leave will be taxable for you. Only at the time of retirement, leave encashment is exempted subject to certain limit and conditions. In your case it is fully taxable. The HRA received by you will be fully taxable in your case because you have not paid any house rent from this amount as you are staying in your own house. |
co
By K.R. Wadhwaney More BA flights for London ANY stick is good enough to attack Air India and Indian Airlines. Both carriers are indeed overstaffed in ratio of fleet. They have earned a lot of negative publicity and even when politicians and others err, they are taken to task. Apart from real estate in this country and other parts of the world, Air India’s intrinsic wealth lay in bilateral flying rights which Air India has been unable to cash in on because of the paucity of aircraft. But the powers that-be have “cleverly” given away flying rights to other carriers without properly highlighting Air India’s potential and capacity. The Ministry has defended its move in giving away these lucrative rights to foreign carriers. The bilateral agreements, which are virtually one-sided, will lead to heavy losses to the airlines. But what is cause of
concern is that the Ministry, in order to achieve this “ dubious distinction”, has adversely affected the team-work among the senior officials of the airlines. The government should have exercised caution before privatisation instead of going berserk. What is the urgency to effect uncalled for transfers before disinvestment. Bird hits The Nepal Government has been accused of bird menace obtaining at Tribhuvan International Airport. About half-a-dozen aircraft have been grounded because of bird hit during the last one month. The Pacific Asia Travel Association (Nepal chapter) at a meeting recently, issued a threat to the government that airlines would stop operating flights if the conditions were not improved. New schedule British Airways will operate three weekly non-stop services from Calcutta to London with new state-of-the-art aircraft, wide-bodied jets, the Boeing 777, from October 30. With these additional flights, BA will operate as many as 19 flights a week from four Indian airports to Heathrow (London). Delhi and Mumbai will, however, be served with daily flights. |
cr
Net-linked double suicide TOKYO: A Japanese dentist and a young woman who met over an Internet site that provides information on how to kill yourself, have apparently committed double suicide. The man, a 46-year-old dentist, and the woman, a 25-year-old former company employee, met through a chat room on the suicide web site about a month ago and were found dead at the dentist’s home in the Sea of Japan prefecture of Fukui, according to newspaper reports on Saturday. The man and the woman apparently watched each other die as they both took lethal doses of sleeping pills. They were found together by a relative of the dentist. The two met for the first time a few days before their deaths after exchanging scores of e-mail in which they asked for the support of the other in committing suicide. “If we have a common purpose, we have nothing to fear,” the national daily Yomiuri Shimbun reported one e-mail as saying. The woman had recently resigned from her job and the man was suffering from a chronic disease. “At this point there have been numerous reports about a Net double suicide but we have not made any statements on the matter,” a police spokesman told Reuters. The suicide web site where the two met provides free registration, information on committing suicide and a chat room. The Internet had featured in a Japanese suicide earlier when in December 1998, a woman died after receiving a lethal dose of potassium cyanide sent to her by a Net suicide service. In addition, one of the top grossing domestic movies at the Japanese box office over the past two years “Bayside Shakedown” used a plot twist that centres on a suicide web site.
— Reuters New Daewoo
Chairman SEOUL: bankrupt Daewoo Motor Co’s new Chairman starts work tomorrow ahead of a cost-cutting campaign, expected to include major job losses, to boost takeover talks with us giant General Motors Corp. Daewoo Motor elected Lee Jong-Dae as its new Chairman yesterday in a reshuffle following the resignation of 30 per cent of the company’s top executives. Lee had previously helped the bankrupt Kia Motors Corp find a new owner. One of his first jobs will be to implement a rescue package for South Korea’s No. 2 auto-maker, expected to be announced on Tuesday. Seoul newspapers said Daewoo Motor’s creditors want a 15 per cent cut in its 17,000 production workforce in South Korea, the suspension of some assembly lines at home and abroad, and the spin-off of parts makers and sales outlets. The company is in deep crisis with huge debts and sales falling each month as it battles for survival. Creditors have pressed Daewoo Motor to reduce costs through redundancies in return for a fresh bailout that might encourage a takeover by General Motors (gm). Daewoo Motor had 18 trillion won ($ 16 billion) in debt and 12 trillion won in assets at the end of 1999. Analysts warn creditors risk heavy losses as the debt mounts. Lee, who has a us doctorate in economics, took over Kia Motors Corp in 1998 and launched a sweeping restructuring so it could be sold to Hyundai Motor Co. That also involved widespread job cuts. Daewoo Motor has already laid off around 1,500 office staff since Daewoo group collapsed in august 1999 with $ 80 billion in debt — the world’s biggest bankruptcy.
— AFP No check on whale killing NEW
DELHI: When hundreds of whale sharks visit the Gujarat coast this year between November and April, at least a thousand will not return to deep sea but land up on dinner plates in South East Asian countries. The fishermen of Gujarat slaughter between 800 and 1000 whale sharks or rhineocodon typus every year in the most inhumane manner and export meat and fins to Taiwan, Korea, Singapore and Hong Kong where it is a sought-after delicacy, says Ms Fahmeeda Hanfee, a senior researcher with the World Wildlife Fund for Nature-India. Ms Hanfee, who has been studying whale shark for the past three years with a grant from the Rufford Foundation, will submit the final report in November recommending the government for imposing a complete ban on killing and trade of the largest mamal in the world. The species is not protected under the Wildlilfe Protection Act of 1972 nor by any other world body.
— UNI |
bb
IOC net dips FII buying Inflation falls |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 120 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
