The Foundation has nearly tripled its member base in the past 365 days to almost 21,000. Workshops on topics as diverse as the Right to Information Act, the evils of the Aadhaar scheme, food adulteration and Wills & Nominations, along with numerous financial literacy seminars allowed it to surpass 150 events a few weeks ago over the last three years
Moneylife Foundation has completed three years educating savers about the various financial products and their risks, giving them the knowledge to make independent decisions about money and life. Its membership, which is free, has reached almost 21,000 today from 7,388 a year ago.
Aside from various workshops on financial literacy, the Foundation organised events on issues of deep public interest, such as biometric identification, the draconian Section 66A of the IT Act, food adulteration, property taxes and medical malpractice. Each of these were conducted by experts such as former IPS officer and now activist lawyer YP Singh, Col Mathew Thomas, a missile scientist from Bengaluru and Advocate Godfrey Pimenta. While the majority of the events were held in Mumbai, the Foundation also travelled to Kochi, Mangalore and Pune this last year. But this is not all the Foundation is up to. A major chunk of its work is related to advocacy.
A couple of weeks ago, for example, the Foundation was able to get justice for a barely literate ticket collector from Solapur—Arvind Injamuri. He had been fraudulently mis-sold insurance polices work Rs12 lakh by Reliance Life Insurance. The regulator forced Reliance Life to pay back the money plus Rs1.5 lakh in interest. The Foundation, by filing an RTI application, managed to get the performance of Portfolio Management Schemes to be disclosed and, eventually, was able to get an order asking SEBI to put all the information out on its website from April this year.
Moneylife Foundation has also been working towards the removal of arbitrary regulations governing mutual fund distribution and the tens of thousand unregulated pyramid and Ponzi schemes that are beggaring people around the country.
In the next year, it plans to widen its counseling initiative to areas such as Wills & Nominations and other legal issues. It intends to launch counselling in at least two new areas in the coming year and to extend this to members across India through webchats, email and video links. The Foundation also plans to take up issues relating to credit scores and credit history as well as senior citizens’ issues in the coming year.
To mark the occasion of its third anniversary, Moneylife Foundation has organised an event in Mumbai today, 15 February 2013, at which CAG Vinod Rai will speak on “Government Accountability is the key to a Vibrant Democracy”.
Vinod Rai, the first Comptroller & Auditor General of India (CAG) to show us that the government and politicians can be made accountable, if statutory bodies simply do their job, will address a packed audience on the need for an accountable government in building a vibrant democracy
Moneylife Foundation has organised a lecture by Comptroller and Auditor General of India (CAG) Vinod Rai, to be followed by a question and answer session to be moderated by the Foundation’s trustee Sucheta Dalal, at Swatantryaveer Savarkar Rashtriya Smarak in Dadar (Mumbai) at 6:30pm this evening.
CAG Vinod Rai’s relentless audit and fearless disclosures have told the story of the massive real and potential losses in the sale of 2G telecom spectrum, the Commonwealth Games, allocation of captive coal blocks and irrigation projects. Mr Rai has managed to remain unflappable under extraordinary political pressure, making him no less a national hero than anyone else in recent memory.
His fearlessness has shaken up government and unsurprisingly attracted detractors, mostly from the government. Even the prime minister, on more than one occasion, has said that the CAG is going beyond his mandate. Mr Rai hasn’t backed down, of course. Just last week, addressing Harvard’s prestigious Kennedy School, he criticised the Manmohan Singh government for attempting to reduce the federal auditor to a mere accountant with no real role in auditing policy.
Mr Rai took over as the Comptroller & Auditor General of India on 7 January 2008. He has a Masters Degree in Economics from Delhi University and Masters in Public Administration from Harvard. A 1972 batch IAS from the Kerala cadre, he was the Additional Secretary, Banking and later, Secretary, Department of Financial Services, in his previous assignments.
About ML Foundation: For three years now, Moneylife Foundation has been spreading financial literacy all over India. Its member base now exceeds 21,000. The Foundation has conducted over 150 seminars on topics as diverse as Right to Information, Wills and Nominations and Pyramid Schemes. It was set up by Sucheta Dalal, Debashis Basu and Dr Nita Mukherjee.
The company hopes to add $20 million in revenues in FY13 and improve its focus on client retention and acquisition on its non-core client base. Nomura thinks the company is worth Rs110 per share
Nomura Equity Research, which hosted Hexaware non-deal roadshow, reports that the management of the company seemed optimistic and bullish of its future prospects. The company’s revenue is expected to grow at 10% in dollar terms, mainly driven by BFSI, healthcare and insurance verticals. However, Nomura reports that Hexaware management is concerned about its lack of focus on its non-core clients (non top-20 clients). The report said, “Among clients, the management is confident about growth from Hexaware’s top 20 clients but acknowledges that its focus on non top-20 clients has been insufficient in the past, which will need refocusing.” It also hopes to make acquisitions in order to focus on the manufacturing/retail space with SAP capabilities.
Despite the focus on top clients, the Nomura report mentions that revenues of its top clients (i.e. top 20) had declined 21% quarter-on-quarter in the fourth quarter because of work stoppage in a particular project.
Hexaware management is not only confident of delivering on the revenue front but also on the EBITDA front. Nomura states that the management expects EBITDA margins to be in the range of 18%-20% range once it gets to steady utilization rate. The management also reiterated that not much hiring would be required. EBITDA margins have been plummeting in recent times but Nomura has forecasted that it would increase and stabilize. Check the graph below:
Most information technology companies rely on the US dollar for revenues and hence hope that Indian rupee will remain ‘weak’. Hexaware is no stranger to this. It has hedged at least 80% of its 2013 receivables at Rs53-Rs53.50 per dollar.
Despite the expected optimism amidst challenging economic circumstances and volatile currency rate movements, the company remains upbeat and is likely to maintain dividend payouts. According to Nomura, the company has indicated that 50% dividend payout will be maintained and translates to an impressive 6% dividend yield.
Based on the road show, Nomura has fixed a target price of Rs110 per share and has maintained a BUY recommendation.
For our analysis on other Nomura reports, check here.