Companies & Sectors
TDSAT directs DoT to return Videocon Telecom's bank guarantee

TDSAT asked the government the return bank guarantee of Videocon Telecom in Himachal Pradesh, Orissa, Rajasthan, UP (West) and Karnataka circles

New Delhi: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed the government to return the performance bank guarantee (PBG) submitted by Videocon Telecom at the time of spectrum allotment in five circles, reports PTI.
The TDSAT said: "this Tribunal is of the opinion that the Respondent (DoT) cannot take advantage of its own wrong".
"These petitions are, therefore, allowed. The Respondent (DoT) is hereby directed to return the PBGs, in respect of the aforementioned circles," said the Telecom Disputes Settlement and Appellate Tribunal.
The circles are Himachal Pradesh, Orissa, Rajasthan, UP (West) and Karnataka. Videocon was alloted licences for 22 circles.
The firm had approached the TDSAT for revision of its bank guarantee after completing its roll-out obligations.
According to the company, it has completed the mandatory 50% and PBG should be reduced. However, because it was not done, it approached the TDSAT.
TDSAT said the DoT can not keep the bank guarantee alive for years after years as the operators have to incur certain expenditures. "Failure on its part to do so cannot be taken into consideration for opining that the Petitioner (Videocon) would not be rendered just relief to which it is entitled to," said the TDSAT bench headed by Justice SB Sinha.
It further said that Telecom Enforcement, Resource and Monitoring (TERM) Cells of DoT has already issued certificate from July 2010 till May 2012.
"It is also not in dispute that the TERM cell while issuing the said certificate would send a copy thereof to the DOT. The DOT was to act thereupon. It has an obligation to act within a reasonable time," TDSAT said.
It also said it did not agree with the submissions of the DoT that the Central Government is required to take a final decision in bank guarantee issue, hence, it could not be mere returned after getting report from TERM Cell.
"Keeping in view the fact that it had an obligation under the licence agreement, which is a contract within the meaning of the provisions of the Indian Contract Act, DoT was required to discharge its contractual liabilities, in absence of a time fixed within a reasonable period.
"It is difficult to comprehend that why in certain cases, as indicated heretobefore, it could not complete its verification as regards fulfilment of the roll out obligation process by the Petitioner for a period of more than two years or three years," said TDSAT.


Mirza International doubles operating profit; stock up nearly 10%

One of the reasons for this impressive turnaround is because the company purchased less material, perhaps anticipating less demand in face of global economic difficulties 

Mirza International, a small-cap leather-oriented company, posted a stellar operating profit which saw its share price zoom nearly 10% on the Bombay Stock Exchange (BSE). Despite a benign increase in net sales, which was up 7% year-on-year (y-o-y), Mirza International’s operating profit nearly doubled, y-o-y, to Rs34.67 crore on back of sales of Rs166.74 crore. Net profit was Rs13.40 crore for the quarter ended September 2012 when compared to Rs11.27 crore recorded in the same period a year ago. One of the reasons for this impressive turnaround is because the company purchased less material, perhaps anticipating less demand in face of global economic difficulties. 
To read about results of other companies, click here.
We peeked into the details more closely and found out that net sales have been steadily increasing and not one declining quarter was recorded. Mirza International’s current quarter net sales growth nearly matched historical three-quarter y-o-y growth average of 11%, signifying consistency. This year Mirza International’s operating profit seems so impressive that it could either be a turnaround or an abnormality. Hence, it remains to be seen whether this, perhaps deliberate planning, will translate to better results going forward. Its valuations are extremely cheap with market capitalization 1.18 times operating profit with a fairly solid return on equity (RoE) of 17%. 
Mirza International manufactures mainly leather footwear and exports leather.  It owns brands such as Red Tape as well as develops a range of leather shoes for ladies, kids and citizens of various age groups. The company has 70 retail outlets of Red Tape and has planned to achieve a target of about 150 stores over a period of three years across India. The company sources its cowhides from Europe and manufactures leather in stringent adherence to international norms, ensuring that no banned chemicals are used in the production process. Apart from Red Tape, it owns Oaktrak and Red Tape Gal brands.
Mirza International’s stock price, at time of writing this piece, zoomed 9.04% to Rs19.30, on the Bombay Stock Exchange (BSE).
You can read more about Mirza International here.


Nilam intensifies into severe cyclonic storm

Nilam is expected to intensify further into a severe cyclonic storm and move northwestwards and cross north Tamil Nadu and adjoining south Andhra Pradesh coast between Puducherry and Nellore, close to Chennai by Wednesday evening

Chennai: Cyclone 'Nilam' on Wednesday intensified into a severe storm with extremely heavy rainfall expected over North coastal Tamil Nadu and Puducherry even as the weather department warned of extensive damage to huts, standing crops and power lines, reports PTI.


The cyclone is expected to cross between Puducherry and Nellore in Andhra Pradesh close to Chennai this evening.


"The system would intensify further into a severe cyclonic storm and move north-westwards and cross north Tamil Nadu and adjoining south Andhra Pradesh coast between Puducherry and Nellore close to Chennai by this evening, the Indian Meteorological Department (IMD) said in its latest bulletin.


Gusty winds with a maximum surface wind speed of 45 kmph to 110 kmph is expected, it said.


Extremely heavy rainfall of over 25 cm or more is expected over north Coastal Tamil Nadu and Puducherry in the next 24 hours.


Rainfall at most places with isolated heavy to very heavy falls would occur over south coastal Andhra Pradesh, Rayalaseema and north interior Tamil Nadu in the next 48 hours with gale speeds of 90-100 kmph, gusting to 110 kmph along and off north Tamil Nadu, Puducherry and adjoining south Andhra Pradesh coasts.


The sea condition would be "high to very high" along and off North Tamil Nadu, Puducherry and South Andhra Pradesh coast, the Met office said.


Storm surge of about 1-1.5 metre over the astronomical tide is likely to inundate low lying areas of Chennai, Kancheepuram, Tiruvallur and Nellore districts, it said.


The Met office also advised total suspension of fishing operations and for coastal dwellers to move to safer places.


Danger signals ranging from seven to five have been hoisted at Chennai, Ennore, Cuddalore, Nagapattinam, and Puducherry ports.


Local cautionary signal number three has been hoisted at Pamban and Thoothukudi ports, it said.


The latest satellite image of Cyclone Nilam as provided by US Naval Research Lab's Tropical Cyclone page suggests the "eye" beginning to form.

(Image Courtesy:



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