Personal finance Friday

Tata Mutual Fund floats Tata Fixed Maturity Fund Series 29 Scheme A; Kotak Mahindra MF launches Kotak FMP 370 Days Series 10; HDFC Mutual Fund unveils HDFC FMP 100D October 2010 (3); Sharekhan ties up with US-based academy to offer stock market courses

Tata Mutual Fund floats Tata Fixed Maturity Fund Series 29 Scheme A

Tata Mutual Fund has launched Tata Fixed Maturity Fund Series 29 Scheme A, a close-ended income scheme. The investment objective of the Scheme is to generate income and/or capital appreciation by investing in debt and money-market instruments having maturity in line with the maturity of the Scheme.
The Scheme offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The exit load for the Scheme is nil. The Scheme opens on 22nd October and closes on 27th October. The minimum investment amount is Rs10,000.
The benchmark index for the Scheme A (371 days maturity) is CRISIL Short Term Bond Fund Index.

Kotak Mahindra MF launches Kotak FMP 370 Days Series 10

Kotak Mahindra Mutual Fund has launched Kotak FMP 370 Days Series 10, a close-ended income scheme.
The investment objective of the Scheme is to generate returns through investments in debt and money-market instruments with a view to significantly reduce the interest rate risk.
The Scheme offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The Scheme closes on 26th October. The exit load for the Scheme is nil.
The minimum investment amount is Rs5,000. The Fund seeks to collect a minimum subscription amount of Rs1 crore.
CRISIL Short Term Bond Index is the benchmark index. Deepak Agrawal and Abhishek Bisen are the fund managers.

HDFC Mutual Fund unveils HDFC FMP 100D October 2010 (3)

HDFC Mutual Fund has launched HDFC FMP 100D October 2010 (3), a close-ended income scheme. The investment objective of the Plan under the Scheme is to generate income through investments in debt/money-market instruments and government securities maturing on or before the maturity date of the Plan. The Plan will invest 60%-100% in debt and money-market instruments having low to medium risk. The Plan will invest 40% in government securities having low risk.
The Plan offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The exit load for the Plan is nil. The Plan closes on 1st November. The minimum investment amount is Rs5,000.
CRISIL Liquid Fund Index is the benchmark index. Bharat Pareek and Anand Laddha are the fund managers.

Sharekhan ties up with US-based academy to offer stock market courses

Mumbai-based retail broking house Sharekhan Ltd has tied up with California-based financial education provider Online Trading Academy (OTA), to offer courses in stock market education in India. The curriculum will be based on OTA's hands-on coaching style to provide live trading experience to students.
All trading costs and losses, if any, incurred by the students, will be borne by OTA. The seven-day introductory course called Professional Trader India Course has been specifically designed to suit Indian trading conditions.
Sharekhan will offer brokerage discounts to students till their entire tuition fee is virtually reimbursed. It will also offer access to its recently launched Trade Tiger platform - a single online platform for multiple exchanges as well as mutual funds and initial public offerings.




7 years ago


The dark side of Coal India

We dug deep into the coal behemoth’s seamier side. Though Coal India is flying high now on the back of its big-bang IPO, it really did not come up smelling of roses

Now that the hype about Coal India Ltd's (CIL) Rs15,000-crore mega initial public offer (IPO) is dying down, now it's time to look at the company's darker side.

For instance, there are about 615 proceedings pending against employees of CIL and its subsidiaries, including investigation by the CBI and the Central Vigilance Commission, (among other regulatory bodies) relating to corruption and other charges. Still, CIL firmly believes that these proceedings will not impact its financial results. The world's largest coal reserve holder, in its red herring prospectus, has not submitted a comprehensive list of legal proceedings.

In May 2010, MP Dikshit, ex-chairman and managing director of South Eastern Coalfields Limited (SECL), a subsidiary of CIL, was arrested by the CBI for allegedly accepting about Rs1.30 crore from two private firms. In 2003, the government suspended NK Sharma, CMD of CIL, on allegations of corruption. He was charged with misappropriation in the purchase of coal and allegedly favoured Bharat Earth Movers Ltd for awarding a contract.

The Centre is also fully aware about CIL and its subsidiaries' illegal practices but it looks like the government, and indeed, the coal behemoth itself, do not seem to be concerned, since the entity accounts for more than 80% of India's coal output.

Recently, Union coal minister Sriprakash Jaiswal had told reporters that the Centre has taken "adequate efforts" to curb corrupt activities in the coal sector, which had built up over the past 30 years. However, he did not miss the chance to blame state governments, saying that the Centre is "not getting help" from them in eradicating corruption.

As on 10 September 2010, nine public interest litigations, three criminal and ten income-tax cases have been filed against the company. Despite being a government undertaking, CIL is also facing allegations from other government departments. The Department of Central Excise and Customs has raised a claim of Rs6.40 million against the company (CIL did not provide the detailed information in its red herring prospectus).

There are 16 arbitration matters and 10 civil cases, which account for about Rs268.69 million and more than Rs100 million respectively, involving the company.

Additionally, there are about 160 cases relating to sales and marketing disputes filed by CIL's consumers. The company has also been charged for alleged encroachment of land for carrying on mining activities and 236 service matters have been filed by its employees.

CIL's subsidiaries are one step ahead as far as pending litigation goes. More than 250 criminal cases have been filed against Bharat Coking Coal Limited (BCCL), another subsidiary of CIL. One notable case has been the criminal case filed by the directorate general of mines safety, against BCCL officials, alleging that certain company officials had failed to take timely action to repair or replace badly-deteriorated pipelines which resulted in the death of three workers.

Six public interest litigations and a whopping 448 tax cases, relating to sales tax, service tax, royalties, rural employment and primary education cess, and bank guarantees which involve Rs5,696.27 million, have been filed against BCCL. A total of 868 civil, 843 service cases and 71 arbitration petitions have also been filed against BCCL.

Central Coalfields Limited, which has lost 11.26 lakh tonnes in production till June this year, is also facing allegations for illegally dumping hazardous waste, forceful occupation of land, violating environmental norms, evading electricity duty and various tax cases. The total amounts involved in tax cases and arbitration cases are Rs29,423.42 million and Rs478 million respectively. The directorate general of mines safety has also slapped accident cases against a few CCL employees.

Central Mine Planning and Design Institute Limited (CMPDIL), Eastern Coal Fields Limited (ECFL), Mahanadi Coalfields Limited (MCL), Northern Coalfields Limited (NCL), South Eastern Coalfields Limited (SECL) and Western Coalfields Limited  (WCL) - all CIL subsidiaries - are facing thousands of cases relating to criminal, tax, encroachment and environmental issues amounting to billions of rupees. A molestation case has also been filed against a senior official of NCL.

A media report says that despite the company's safety and health measures, the situation is still poor. Major accidents were in the New Kenda Colliery (54 deaths) in 1994, Gaslitand mine (65 deaths) in 1995, and Bagdiggi mine (29 deaths) in 2001 and there is also a steady toll of smaller accidents. In the case of units under CIL, the annual number of deaths run at an average of 190, added the report.

Despite the company and its subsidiaries being charged with serious allegations, almost all market pundits and research firms have gone ballistic over the IPO citing the company's strong balance sheet, rapidly growing production and reserve capacity and increasing demand for the company's products.



Shibaji Dash

7 years ago

Col India touched a high of Rs 357- gain of Rs 112/-. Just wait for a few days to know who have bought up the shares off loaded by the HNIs , the retail buyers of the IPO. and to whose domain and control these shares have passed on directly or indirectly. It would be some of the top 5 multi national mineral companies. Incidentally, that is and would not be story in the case of the No.1 Chinese company owning the highest amount of coal reserve in the world.


7 years ago

corruption and misuse of power is universel,see the listing

Shibaji Dash

7 years ago

Mr Matade may consider requisitioning Information from the IT Dept. at Kolkata or CBDT about the outcome of the massive raid on the coal mafia of Dhanbad in 1988/1989(with CRPF protection) to add more factual back up to his research.

Sonali Bankar

7 years ago

This is really eye-opening report. This could have been highly impacted, if reporter would have come up this report before IPO.

Satish Kasturkar

7 years ago

This helps us to understand Coal India very well.
The report is commendable.

Rohinton Khambata

7 years ago

Excellent piece of Journalism. How I wish you had published same before its IPO issue.


7 years ago

Market eventually discounts these factors in price. Not (sur) prised correctly.

Shadi Katyal

7 years ago

I agree with Mr.Prasan that we must get some details of Coal Mafia as it is well known that tons of coal along with trucks is stolen daily.
As for Indian coal the unfortunate part is that it has more ash and since it is PSU the cost to customer is much higher as prices are manipulated. If there is no PSU and no hanky panky is done Coal could be king .
The Indian PSU are well known of corruption but now we saw right under the throne much larger thievery in CGW.
One should ask the quesion why are we allowing PSU even to exist.
Look at Air India and hotels


7 years ago

nice and good information but why u didnt publish in-between Ads of IPO thanks to spread awareness and make public to open their mind in dis regard

k a prasanna

7 years ago

Coal India being a PSU there is bound to be corruption, malpractices and misuse of power etc.,in the set up. Is there any PSU out fit in the country which is totally non corrupt? Also, there is bound to be litigation, accidents, considering the scale and area of operation. These are trivial matters. More importantly, the entire coal business is controlled and managed by COAL MAFIA. Instead, readers would welcome an in-depth article, on 'mafia' control of coal business.

Shadi Katyal

7 years ago

Why is PIO allowed when there are so many cases pending. Off course this is a PSUand there will never be any judgment against the employees.
Who will invest in such PSU???


Narendra Doshi

7 years ago

It is unfortunate that Sharad Matade could not come out with this excellent 'graveyard backlog heap of dirt information' befor or during the IPO period.
What do you recommend to retail investors who get the allotment ??

TCS shares hit new high after good Q2 results, Wipro slips

Mumbai: Tata Consultancy Services (TCS), the country's largest software services exporter, climbed to a new high in early trade today after the company's profit growth outpaced that of Infosys Technologies Ltd and Wipro Ltd. The stock price gained 5.8% to Rs1,043, the highest since the shares started trading in August 2004 after the company posted a more than 30% jump in quarterly net profit and said it expected strong demand for outsourcing towards the end of the year.

Wipro, the third-largest outsourcer, lost nearly 4% to Rs455 after it announced a 10% growth in Q2 profit, which was below market expectations. The stock price of Infosys - the second-largest exporter - gained up 1.6% to Rs3,084.

TCS yesterday announced a 32.1% jump in net profit at Rs2,169 crore in the quarter to September 2010 and a 24.9% growth in revenues year-on-year at Rs9,286 crore, reports PTI. "It has been a quarter of superior performance across the board, driven by volume growth of over 11%," N Chandrasekaran, managing director and CEO of TCS, said. "In uncertain economic conditions, our results are a milestone on the path to a strong demand recovery."

Mr Chandrasekaran said that the growth achieved in the past quarter makes the company positive about its outlook for global demand. He refuted pricing concerns, saying that the company expects pricing to rise towards the end of the year. Last week, Infosys also raised its guidance, suggesting an increase in corporate spending on information technology.

TCS added 30 new clients and won eight large deals, including five large deals from the US, in the second quarter. The company also saw significant deal closures across sectors and the deal pipeline is expected to be good, he said. 

All major markets grew in double-digit terms with Europe leading the pack. The company's North American revenues crossed $1 billion. All emerging markets also grew with India and APAC leading the pack. All grew registered double-digit growth, Mr Chandrasekaran said. "Given the growth we have achieved across all industry units, we are very positive about the global demand recovery going forward while being watchful in view of the macro environment."

The Tata group company sees discretionary spending by clients and expects an increase in clients' budgets next year. It also expects increase in IT spends by customers in FY12.

Mr Chandrasekaran pointed out to the appreciation of the rupee as a "big headwind" in the next quarter. The company reported a Rs47 crore foreign exchange loss in Q2. "With our major operating currencies continuing to be volatile, we remain vigilant on this front," S Mahalingam, chief financial officer of TCS, said.

During the quarter under review, TCS was granted two patents. Till date, the company has applied for 380 patents and has been granted 64 patents.




7 years ago

send me two days free trial

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)