Shareholders have chosen “not” to re-appoint MAM Ramaswamy, the majority stakeholder, as director of Chettinad Cement, one of the popular companies in South India
Shareholders of Chettinad Cement Corp has rejected the proposal to re-appoint MAM Ramaswamy, noted industrialist and promoter of Chettinad Group of companies, as director of the company.
“Resolved that Dr MAM Ramaswamy, Director, who retires by rotation pursuant to Section 152 of Companies Act 2013, be and is hereby not reappointed as Director of the Company”, the resolution moved in the company's annual general meeting (AGM) said.
Ramaswamy has been chairman of Chettinad Cement while his adopted son MAMR Muthiah serves as its managing director. At the 51st Annual General Meeting of Chettinad Cement in Chennai, a resolution seeking his non-appointment as director of the company was moved, according to shareholders.
Ramaswamy holds 24% of the flagship company Chettinad Cement, while his adopted son Muthiah holds 15% and his wife, Geetha Muthiah has 18% stake in the company.
Ramaswamy’s non-election as director of Chettinad Cement comes a day after the Central Bureau of Investigation (CBI) arrested Chennai's Registrar of Companies (RoC) for allegedly demanding and accepting Rs10 lakh as bribe from Ramaswamy.
The Registrar M Manu Neethi Cholan was nabbed red handed by CBI for allegedly demanding and accepting Rs10 lakh as illegal gratification from Ramaswamy to declare “null and void” the resolutions adopted at Wednesday’s meeting, where the rival group within the Chettinad Group management was planning to take control over the companies.
However, CBI which registered a case of bribery against Ramaswamy, did not arrest him considering his age.
With shareholders rejecting Ramaswamy’s reappointment as director, the post of chairman of Chettinad Cement Corporation would become vacant.
Apart from cement business, the Chettinad group is engaged in activities in granite, engineering, silica, garnet, Information Technology, education, healthcare, plantations, shipping, transportation.
Ramaswamy was also Pro-Chancellor of Annamalai University at Chidambaram in Tamil Nadu, but it was taken over by the State government due to alleged ‘financial irregularities’.
Large-cap companies as per Moneylife’s classification reported a 11% growth in net profits for the June quarter but enjoyed a 68% jump in valuation
Companies classified by Moneylife as large-cap (market-cap between Rs2,000 crore and Rs10,000 crore) reported a 9% growth in aggregate sales and a 11% growth in net profit for the quarter ended June 2014 compared to the quarter ended June 2013. As many as 140 companies, of the 241 large-cap companies, reported an increase in net profit.
Interestingly, the market-cap of these 241 companies shot up by a 37% during the quarter. From the end of the June quarter till date, the aggregate market-cap has fallen by -1.67%.
Moneylife tracks a database of 1,294 companies, of which 1,222 companies have declared their results for the June 2014 quarter. Of these 1,222 companies, 241 are large-caps. The aggregate revenues of the large-caps form a share of 16% of the total revenues of the 1,222 companies. The aggregate net-profits of the large-caps form 11.63% of the total net profits.
Among the top performers from the large-cap sample, PTC India, Atul, PI Industries, Kajaria Ceramics and VST Industries have reported an average of 23% growth in sales for the June 2014 quarter, compared to the same period last year. The net profits of these companies have grown by an average of 51%. Companies such as Bhushan Steel, Dish TV India, Fortis Healthcare, Hathway Cable & Datacom and Indian Hotels, reported a profit for the June quarter last year, but have reported a net loss in the latest quarter. These companies have reported a drop in operating profits as well.
As many as 152 large-caps have reported a growth in operating profit and 126 companies have reported a higher operating profit margin. However, the aggregate operating profit margins were marginally lower at 14.51% for the June 2014 quarter, compared to a margin of 14.94% in June 2013. Aggregate net profit margins increased marginally to 5.38% in the quarter ended June 2014 from 5.28% in the quarter ended June 2013.
Valuations of the 241 large-caps measured by market-cap to operating profit (latest quarter annualised) increased by 68.47% to 8.5 times on 18 August 2014 compared to a year ago, when valuations were at five times. The market-cap to net profit increased by 60.85% to 22.9 times from 14.2 times over the same one-year period. Out of the 241 companies as many as 79% or 190 companies are quoting a higher valuation compared to a year ago.
A Committee comprising PM and the Leader of Opposition, recommends CICs names. Since, at present there is no Leader of Opposition, a recently-retired CIC has not been replaced. How to get around it?
There is some discussion about the fact that the replacement for the Chief Information Commissioner who retired last week cannot be appointed since the Leader of Opposition is missing. This is flawed since Section 12 (3) of the RTI Act clearly says :
(Shailesh Gandhi served as Central Information Commissioner under the RTI Act, 2005, during 18 September 2008 to 6 July 2012. He is a graduate in Civil Engineering from IIT-Bombay. Before becoming a full time RTI activist in 2003, he sold his packaging business. In 2008, he was conferred the Nani Palkhivala Memorial Award for civil liberties.)