Towards 2nd Issue

An effort by Stockyard in association with Mantra Consultancy Group

10th April 2008

Issue 2

towards….

Incredible India

www.stockyard.infinites.net

A Business Magazine by Business Managers

towards….?

From Editor’s Desk Towards….Incredible India This is an attempt to seek a path….Path for a nation which is at the cross roads….Millions of years old culture, 10,000 years old history, thousands of years of legacy, 50 years of Independence ….and we are still young…Millions of inventions, epics, myths, discoveries, saga, explorations, adventures and frontiers of knowledge…and we are still Confused….. One of the oldest social institutions, political system, saga of patriotic epics and probably the most ancient national identities…one that used to say, I quote “uttarasya yat Himalayat, dakshinechav samudraye, varsham tad naam bharat, bharati yasya santati” The great

Himalayas stand whose north, and the great ocean touches whose feet, the land is called India, Bharat and its children are Indians, bharati”. And still we have not emerged as nations….We still are a loose tie-up of 30 odd states that are dieing to show-off their regional identities surpassing India as a nation. We are still first Kannadiga, Tamil, Malayali, Maharashtrian, Bihari, Punjabi, and Bangali…..and finally when time permits...Which will never ever happen, we are a secondary citizen of a loose federal system called India. So, we are the most confused nation, race and society ever existed on this planet and probably most confused compared to any other contemporary nation or society.

So…..towards-----is a quest to find the path….. And this issue of towards…? Has been dedicated to one road….or one dream…..An incredible India…. It is for you to weave this dream deep inside you…Let’s dream together, let’s breathe together...For One India…There is a famous sukta in Rgveda, I quote :sangadwachham, samvadatwam, samani mansa jaantaam, yatha bhawe deva purve, yagyahotre samdwitham” which means “We walk together, we speak alike, our minds be emphatic to each other…we explore together…like the GODS who take our offerings in Yagna and strengthen us”. This is the same belief that binds us together and would make one nation India...Which is still somewhere lost in so many hullabaloo...And sloganeering of petty political parties and stupid, ugly leader with their head less followers..Vedas are calling you…not for religion …but for people who are so apart to each other…they all almost look different nations in themselves. Call for one nation...One India……Our India…with no compulsions of caste, creed, language or

region…Lets forget we belong to our states, or languages or races or religions...Let’s call for Oneness…Amen. So...What is this incredible India..?Go to your streets, go to remote frontiers…villages…suburbs, gulli-muhallas….go to Nagaland, Assam, Mizorem..Laddakh…a village in Bihar, Bengal and Orissa…..Tanjaur, Mannaar, Rameswaram….and places where, perhaps we have forgot our Indianness..And somewhere left behind our true identity….. Lets create Incredible India…India of One billion + people…..that talks different languages but one theme…that eats different cushions but one flavor..That has different habits...but one feeling…that knows only one place India..From Kashmir to Kanyakumari..From Kutchh to Namchi Barua….that is one..Rock solid one nation…

towards….? …with an answer “ Incredible India” is in your hands.With the first issue,we have received many responses ,most of them encouraging and with genuine suggestions…and finally we are here with this second issue… This issue starts with social re-engineering...Our readers might think that we are probably overemphasizing one this one topic...But we believe we need a social reawakening and we give this utmost importance. World economy this fortnight continued to be in tail-spin although the pace seems to be slowed now...A new wave of confidence building seems to be spreading in world economy and Financial Markets…though this phase of stagnant downturn is slow enough and can not be termed as reversal of global weakness in economy ..at least at this point of crisis..we believe NO BAD NEWS IS THE GOOD NEWS. With this spirit ,we have covered the latest IMF report on World economy.We have tried to sumup some of the key inputs from the report with our bit of analysis.Thiss report has scrutinized various factors of global economy. In our section of Indian Economy,we have analysed credit and monetary scenarios with the inputs on monetary conditions from HSBC report.Our coverage on External sector and Inflation try to present the real-time economic environment in the country. In the wake of global financial crisis, our team has tried to find out the implications of this turmoil on Indian economy. We have also reported on banking sector as banks are the guardian of economic growth as well as symbolize the health of monetary and fiscal environment. In the same spirit of focusing on economy, we have presented a whole report on Indian economy in a futuristic perspective. This report tries to sketch a projected picture of the economy in coming days with inputs and logical evidences from concurrent variables. With this feeling…the issue is in your hands….. Something that I have just learned from…some one….With his blessings…I am just putting those things….Mahabharat…..the name given by Maharshi Vedvyas was actually not intended to name just a war…but it meant something else… Actually the war was for unification...Rather creating a united India…Krishna..The great visionary of all times…wanted a united India..which would entail a greater synergy of vivid potentials hidden in various sects, cultures and cults..It was meant not just for political but also a demographic unification...He purposefully eliminated all strong warlords…Be it Jarasandh,,Sishupal,Kansh…Drupad..Sakuni( Kandhahar..now Afganistan)….He united all Zanapadas and brought everything in just one fold….& That is what Vedvyas called MahaBharata..The Great India…… And perhaps this was the first reference of India….

With Love & Affection…

towards….. Social re-engineering Are you concerned?

What you look for when you scroll through news channel? What news attracts you or better to ask what news you seek to know? News about how your country performed in recent cricket match? How your Dhoni, Sahwag or may be Pathan scored? Or do you seek to know more what is happening in the lives of Rakhi Sawants, Sahrukhs, Aish-Amitabh, Saif-Kareena or you seek to know what is the latest gossip buzz in Bollywood? Or may be Formula one race, Farrari, or latest in fashion world? And if I may add, things which are so-called trendy, frenzy, stylish or fad? Or is there something in between these so-called important news clips that moves you? Is there something in between, that concerns you, bother you? I believe if your answer is that YES….there is something that bother you…something that takes away the sleepiness of your nights…if something that stirs you from deep within to revolt…to stand up and change…to take the responsibility and then…finally you realize.oofs you are so weak…You know there is something seriously wrong…something that should not have been done..Something so-called civil society should have stood against…but it didn’t dare to……and finally this wave of thoughts dies down….

weaker being beaten up on the streets of Mumbai and nasik, helpless….When I saw Tibetan people weeping and screaming for their long standing right and against atrocities done against them…..When I see some politicians going their long way to pursue their malicious way overcrossing national interests. And many more times….i can’t just number them….and at all such times I felt so helpless…. But are we helpless…I thing we are NOT… And I also believe..there are many who share this anxiety with me….There are millions…who are upset of not being able to stand up against these acts to divide humanity…barbarism…acts of dividing the nation on any A,B,C lines. And here starts a revolution….I believe…James Watt, the one who invented the steam Engine…the steam pressure is just being built up…right here,,,right now….The only necessity is to stir up more minds….to bring more people in this zone of DISCOMFORT….more people dissatisfied with the present state of affairs……

I know..it sounds ….stupid…..BUT ARE YOU READY TO REMAIN STUPID FOR A WHILE ?

Has it ever happened with you? With me…YES…Many times…When I heard Gujarat Riots…When I saw….poorest of poors, weakest of

Hope I could convey..What I wanted to… With Love and Affection….

A Small piece of news which has just flashed on TV this very moment…… Telgi (Fake stamp case fame) with 3 others were acquitted due to lack of sufficient evidence.

World Economy

IMF forecast of Global Economy:

The IMF cut its forecast for global growth this year and has estimated a 25% chance of a world recession. The world economy will expand 3.7% in 2008, the slowest pace since 2002.In January, the fund projected growth of 4.1%. The reduction is the 3rd from IMF since last July when it had projected the growth to be 5.2% claiming that the world economy would cope with the US credit squeeze. The IMF urged Central banks to conduct policy as flexibly as the circumstances warrant adding that European Central Bank has room to lower borrowing costs. The financial crisis that originated in the US sub prime mortgage market in August 2007 has spread quickly, and in unanticipated ways, to inflict extensive damage on markets and institutions at the core of the financial system. The global expansion is losing momentum. The world’s biggest financial companies have reported about $ 232 billion in credit losses and write downs since the start of 2007.This is prompting banks to stop lending to all but safest borrower, undermining consumer spending and business investment. The IMF forecast is below the world economy’s longer-term trends and the

economy is slowing down quite considerably. It gave a 25% chance that global growth will drop to 3% or less in 2008 and 2009, a pace the fund described as equivalent to a world recession. The last time it happened was in 2001.Fund has lowered its forecast for US economic growth to 0.5% below a 1.5% projection made in January. The Euro Zone will expand 1.3% in 2008 down from 1.6%, the earlier projection in January. The ECB has left its benchmark rate at a six-year high of 4% as inflation runs at 3.5%, above its goal of 2% and almost the fastest pace in 16 years. The greatest risk comes from the still-unfolding events in financial markets; particularly the potential that deep losses on structured credits related to the US sub prime mortgage market and other sectors would seriously impair financial system capital and initiate a global de-leveraging that would turn the current credit squeeze into a full-blown credit crunch. Japan’s economy, the world’s 2nd largest, will grow 1.4% in 2008, less than 1.5% the IMF predicted in January. China will grow 9.3% this year, slower than the 10% projection made in January.

Volunteerism at CRY stems from our approach to child rights. We believe that no child exists in isolation and that child rights (CR) are linked to human rights (HR). Thus to address issues of concern wrt. children and their rights we need to take on a holistic approach. Volunteer Action division at CRY aims to build public action for child rights and build a voice that reachs policy makers for pro CR and HR action. For this purpose we enable volunteers to initiate issue based campaigns. We also mobilise the public to build geographical public action groups towards demanding accountability from the local administrations. Volunteers in Mumbai are campaigning on the issue of child labour and education. If you'd like to advocate for a holistic approach to address the issue of child labour, demand that every should be in school and to receive quality education, join the campaign and help build a voice loud enough to reach policy makers. Volunteers in H west ward in Mumbai covering Bandra (w) Khar (w) and Santacruz (w), have initaited a network of citizen's namely Mumbaites for Child Righgts (M4CR), to demand accountability from the local administration on child rights and human rights issues. If you'd like to collectively act with

underprivileged people and mobilise the urban priviledged public to together fight for what is right, join M4CR!And if you'd like to be part of the volunteer theatre group working towards building the theatre collective and using theatre as a medium to grow M4CR and initiating public action for child rights, join us.

We'll require you to attend a volunteer orientation meeting on the 2nd of May 2008 at 7pm, Friday at CRY office [189/A Anand Estate, Sane Guruji Marg, Mahalakshmi e, Mumbai - 11, near arthor road jail and behind punjab national bank.]. My colleague Ms. Havovi shall be orienting you on CRY's child rights approach.

Industry Watch

Entertainment & Media Industry in India Out-performing the economy

The Indian entertainment and media industry is witnessing a phenomenal growth and is slated to grow at 19 percent to US$ 18 billion by 2010 from its current size of US$ 7.9 billion. The Indian Entertainment and Media (E&M) Industry has outperformed the Indian economy and is one of the fastest growing sectors in India………An Study by FICCI and PricewaterhouseCoopers (PWC). The phenomenal growth in the E&M sector can be attributed to economic growth, rising income levels; Cinema India has the world's largest movie (film) industry, which churns out around 1,000 movies a year. It stands at an estimated $1.5 billion and is expected to grow around 20 per cent annually. It is projected to reach $3.4 billion by 2010. 1 The Indian film industry has more than 3.1 billion admissions. With a strong appetite for movies and an upward migration of household incomes in India, this segment brings out several business opportunities in this segment. The industry realizes about 85 % of its revenues from box office collections as compared with the US film industry where the box office sales account for only 27 % of the revenues. Though the number of admissions is the highest in the world, when one compares the number of screens available for India's population, the average is relatively low as compared with other countries. With around 12,000 theatres in the country that are mostly single-screen, the average screen density works out to be only 12 screens per a million populations. Hindi language films command a 40 per cent share of the Indian film market today since a large portion of the films made in India are produced in the south and east regions of India in regional languages. Ancillary revenues - earned by 1

Source: (FICCI-PWC)

consumerism combined with technological advancements and policy initiatives undertaken by the Indian government. An added boost to the industry is reduction of personal income tax over the last decade. Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends..... But efforts to increase it even slightly are likely to deliver much higher results. It is a perfect blend of creativity and commerce and provides vast investment opportunities.

film producers by selling their digital rights to mobile companies, satellite rights to TV broadcasters and distributors (cable companies and DTH players) - are estimated to increase by 20 % a year. The home video households, which currently stand at three million, are projected to increase to about 13 million by 2010 - primarily because VCD and DVD prices are falling. Multiplexes - though only 250 compared with the estimated 12,000 single-screen theatres in the country - are helping the domestic box office revenues. In India, the share of foreign films as compared with the gross box office collections of all films is relatively small at around 5-10 percent. Hollywood films are now being dubbed in local Indian languages and screened in cinema theatres. The dubbing industry has grown at 25-30 per cent over the last five years. In fact, almost 75 percent of the total international industry revenues are contributed by international content released in local languages

Cable and television India is the third largest television market in the world today. From having one public service broadcaster to over 350 channels available today, the Indian television industry has come a long way and is poised for even higher growth. Around 50 new channels are being added each year. This has given rise to the serious demand for content for these 24-hour channels. Television broadcasting companies are continually scouting for content software companies and due to this imbalance, the programming costs are raising in an unproportionate manner. This is a potential opportunity which still needs to be tapped to its fullest. There are over 119 million television households, which comprise only about 60 per cent of the total households in the country. Of these 119 million television households, about 50 million receive cable television services, leading to a penetration of only about 42 per cent cable TV households to total TV households and 25 per cent cable TV households to total households in India. These low penetration percentages show that there exists a huge untapped potential for growth in this industry. Television homes are growing at a staggering rate of 4 percent per annum - it is no wonder that today in India, the number of television homes far exceed the number of telephone-connected homes. India is set to become Asia's leading cable market by 2010, the largest satellite market by 2008, and the most lucrative pay television market by 2015, according to estimates by Hong Kong's Media Partners Asia (MPA). Turnover for multichannel video--including cable, satellite and Internet protocol television (IPTV)--

Companies to watch in E&M Space HT Media Ltd. Cyber Media (India) Ltd Zee Telefilms Ltd. Sri Adhikari Brothers. G V Films Ltd. Crest Communication Ltd. Radio Mirchi Cinevistaas Ltd. Dainik Jagran Sun TV Ltd. Jain Studios Ltd. Shringar Cinemas Ltd. Prime Focus Ltd. PVR Cinemas

will jump to $7.2 billion from $3.6 billion by the end of the decade, a study by MPA showed. Directto-Home (DTH) satellite television service, hitherto the domain of Zee Group's Dish TV and Doordarshan through its free-to-air (FTA) channels, is seeing increased interest on the part of large business houses and has emerged as a major challenge to the established cable TV. DTH has seen the Tatas, along with Star, launch Tata Sky last month and even the Reliance-ADAG Group and Sun TV have announced their intention to enter this segment. From the current market size of around 3.5 million connections, by 2015, DTH will reach 30-35 million. The increasing popularity of DTH services will stir up not only growth within the segment, but also in the cable TV system. Cable operators, especially multi-system operators (MSOs), are gearing up with their offering of digital cable to compete against the DTH services.

Music Indian Music sector, dogged by problems of piracy, could see a revival of sorts with the growth of 'mobile music' and licensed digital distribution services. The sector with a size of $155 million would grow to $165 million by 2010 with a CAGR of merely 1 per cent. According to another section of

the market analysts, the music sector is estimated to be about US$ 149 million in legitimate sales of music cassettes and CDs and is pegged to grow at 3 per cent over the next five years. Exact figures are not available on account of the piracy.

Radio Indian radio reaches out to 99 percent of the population and is currently the most cost-effective mass communication medium in the country. The segment is estimated to be a $67 million industry. It is estimated to garner a share of about two per cent of the total ad spending in India. As many as 338 FM Radio licenses are now available for bidding for the private players. These cover about 91 cities, most of which till now were being serviced only by the State Broadcaster. There will be a boom in the radio Print Media

industry with 22 per cent growth and rationalizations of the license framework will treble its size to about US$ 145.9 million by 2009. India's private FM radio sector is expected to get foreign investments of US$ 111 million in the next 12 to 18 months. Worldspace, the only player in the satellite radio sector, has about 47,000 subscribers in India (globally, it has around 115,000 subscribers). In India, its target was 100,000 by March 2006.

The market highly fragmented with approximately 1900 news publications for a circulation figure of just 200 million. As per the latest readership survey NRS 2005, the reach of the print media (dailies and magazines combined), as a proportion of the reading population (i.e. 15 years and above) is only 27 per cent. The global average readership is estimated to be over 50 per cent. This highlights the Animation

significant potential of the print media market in India. The print media with current size of $1.5 billion is gradually opening up to foreign investment due to a booming Indian economy, growing need for content and government initiatives. The sector with a CAGR of 12 per cent is estimated to grow to $4.3 billion by 2010.

National Association of Software and Services Companies (NASSCOM)'s Study on Animation and Gaming Industry in India, released in December 2005, estimates the global opportunity in this sector at $55 billion today, with the Indian market taking

$285 million in 2005. It sees the opportunity rise to $950 million by 2009. The total cost for making a full-length animated film in America is estimated to be $100 million to $175 million. In India, it can be made for $15 million to $25 million.

Advertising Indian Advertising spending, as a percentage of GDP is only 0.34 percent, which is way below the percentages for both developed and developing countries. This provides an immense potential for growth since advertising revenues are key to every segment in the Indian entertainment and media industry. The television advertising market in India today is estimated at about US$ 1,067 million. Advertising revenue for cable television was $1.02 billion in 2005, and is forecasted to grow to $1.8

billion by 2010. The size of the radio market in India is currently estimated at US$ 53 million and is expected to have the highest growth at a CAGR of 22 per cent in the coming years. With an estimated 28 million Indians already hooked on to the internet, internet advertising in India is presently worth $22 million. With the broadband slowly becoming popular, the segment would show a compound annual growth rate (CAGR) of 50 per cent.

Animation Sector

Animation industry is nascent at $285 millions. The animation industry, along with gaming and VFX, is projected to grow at the CAGR of 25%,second only to online advertising in the entertainment and media industry, for the next 5 years, according to FICCIPriceWaterHouseCoopers report. The animation industry was pegged at Rs 1,300 crore in 2007,up 24% from the previous year’s Rs 1,050 crore.

FM Radio Business

The radio business is poised to grow much ahead of the 24% growth rate that has been estimated by PWC. According to Mr Prashant Pandey………………..CEO, Radio Mirchi, If the TRAI recommendations to allow broadcasting on radio and to allow broadcasters to operate multiple channels in a city are implemented, there could be at least one year of 100% growth for the radio industry in Fiscal 2009-10. More niche channels would be introduced operating multiple channels within a city. The Indian media and entertainment industry is one of the fastest growing sectors of the Indian economy. It has benefited from the economic growth and rising income levels in the country, and is in a crucial phase of transformation. The year 2006 was a good year for the industry and it was characterized by consolidation, realignment and growth in most segments of the industry. Further, the industry is expected to grow faster than India's GDP growth and consequently more expenditure is expected in media and entertainment. The whole industry is expected to grow at the rate of 18% each year through 2011. The Indian entertainment and media industry will touch $27 billion by 2011.

Despite the impressive growth rate, the size of the Indian entertainment and media industry will be the smallest among BRIC countries at $27.09 billion within the next three years. The advertisingsupported sector of entertainment in India recorded the fastest growth of 22 percent in 2007 was would experience a major shift, as digitally interactive mediums gain popularity. The report estimated that Internet advertising would hit $104 million in 2008 to touch $272 million in 2012, while the film industry will top $4.35 billion from $2.37 billion during the period as players discover new revenue streams. The television industry, that attracts the most foreign investment, is forecast to grow from $5.59 billion to $14.8 billion in the period as it undergoes major transformation with digital distribution networks.

How is future? With over 700 million people below the age of 30 and a middle-class of over 300 million, huge potential audience has brought all major M&E companies to India. SONY, Paramount, Disney, Fox and Time-Warner all establishing their operations here. With high ROI, 100 percent FDI on automatic basis, co-production treaties, vast opportunities for investing in theatre/ multiplex infrastructure, increasing number of cable & satellite homes and opening up of foreign investments even in the print media, this segment is all set to script its own blockbuster in the days ahead. These are being driven by the spectacular growth of the television industry, the new formats for film production and distribution, the privatization and growth of radio in the country, the gradually liberalizing attitude of government towards the sector, easier access to and for international companies. With a host of factors contributing to the double-digit growth of the industry and an added easing of the foreign investment norms, the E&M Industry in India thus is a sunrise opportunity that presents significant avenues for investment.

Script to Watch: M&E

Sanra Soft: Animation and Gaming Company Firm is planning acquisition of studios in India and Abroad. Received a SEBI approval for a GDR issue of upto $27.5 million. Plan to set aside $10-15 million for investments to make one or two strategic acquisitions in gaming and animation space. Company is looking at expanding its services business with participation in international trade conferences and forging marketing tie-ups with overseas companies. Company has received orders worth $ 3 million recently and would expand its business to around $ 6 million next year. Two full length animation movies are expected to be completed by 2009, one in 3D and another in 2D format. It earned Rs2.8 crore in 2006-07, and expects to finish FY08 with revenues of Rs 15 crore. The company currently has 150 persons on the rolls at its Chennai and Bangalore centers, and plans to ramp up the headcount to 500 in the coming financial year. It expects a CAGR of around 40% and is looking at achieving a turnover of around Rs 100 crore in the next 45 years. Company, has signed a memorandum of understanding (MoU) with the University of Portsmouth in the United Kingdom to deliver two new media courses starting October this year in Creative and Cultural Leadership (M.A. degree) and Creative and Cultural Entrepreneurship (B.A. degree), according to a press release .

Raj TV Planning to launch 3 overseas channels (Malaysis, US, UK), three 24 hr news channel in different languages and 1 music channel soon. Company is also planning to enter into film making by producing a Tamil movie. The company is planning to invest around Rs 300 crore on expansion and movie production. The company has tied up with Nokia, BSNL and BigFlicks. a part of ADAG, for its content – sharing requirements. RAJ TV is also setting up a studio at a cost of Rs 20 crore on 26,000 sq ft close to its corporate office in Chennai.

ENIL Total Income: Rs 237.6 crore against Rs 138.9 crore last year. A growth of 71%. EBITDA: Rs 45.3 crore against Rs 40.8 crore. EBITDAM= 19 %. PAT Rs 25.1 crore against Rs 21.2 crore.PATM= 105% MCap on 30th March 07 Rs 1577 crore. Financials Equity 47.6 crore Reserves 243.9 crore Net worth 291.5 crore Loan 113.8 crore Income 170 crore (OI 33 crore). EPS Rs 6.11 The company has 50 to 60 % market share in all the cities, it operates. It currently operates in around 32 Cities. The industry (E & M) is expected to grow at a CAGR of over 18% for next 5 years. Currently the industry is of Rs437 billion ($10.92 billion). The low advertising to GDP ratio, currently at just 0.4% (compared to other developing countries like China at 0.6% and Malaysia at 0.9%) indicates that the advertising industry is likely to outgrow the GDP for several years to come. Radio was the fastest growing segment within the advertising industry. The radio industry recorded a growth of nearly 58% in 2006. This took the share of radio up from 2.4% to 3.1% of the total advertising industry. This is further expected to increase to 5.5% by 2011. The radio industry, as per a PriceWaterhouseCoopers report is likely to grow by more than 3 times from its current size of Rs. 5 billion to nearly Rs. 17 billion in 2011.

Goldstone Technologies: IT services company Goldstone Technologies has tied up with BSNL, television channels and production houses to launch Internet protocol Television (IPTV) services to all BSNL customers in India. A similar tie up is on the cards with MTNL. The Hyderabad based company has invested about $8 million in India and abroad on IPTV business. Over half of the projected revenues of Rs 500 crore for the current fiscal will be from IPTV services, a key driver for growth. The company has launched IPTV services in Thailand and is now looking at tieups with telecom companies in 11 European and South East Asian countries. The company is confident of marketing the services as its IP technology can stream videos at a low internet band-width of 600 kilobits per second (kbps).Company believes that their’s is the best technology available in the world compared to that of the Microsoft ,which can stream the videos only at 1.2 megabits per second internet bandwidth. Goldstone’s streaming is more suitable to the bandwidth available in India. Goldstone plans to offer the services through subscription model wherein about 50 TV channels will be transmitted through a set top box. The customer will be charged

a monthly rental of Rs 50.The charges for video in demand will be Rs 39 per movie. The company has conducted a pilot project in 7 locations in Hyderabad. The services will be offered in other cities in the state within four months. Another 10 TV channels will be added by the year end. TV channels and movie content production houses that have tied up with Goldstone will be paid per access. The company also plans to include advertisements within the movies to generate revenue. Goldstone currently has about 2,000 Indian movie titles, 3,500 Hollywood titles. Another 5,000 Indian titles will be added this year. Company is also set to invest about $20 million on its media division that converts black and white movies into color in India and abroad. The company has 275 people working with IPTV division and another 200 with Media division. It plans to raise the headcount to over 750 in the next few months. The company’s revenue stood at Rs 100 crore in 2007-08 and expects revenues to cross Rs 500 crore this fiscal. Income through the IPTV services will contribute to 50% of the revenues. About 20% will come from Biometric services and the rest will be from Media services.

Full Year (200703)

TTM (200712)

NP - Latest 4 Qtrs

FV

BV

Div(%)

MCap

NP

EPS

P/E

NP

EPS

P/E

LQ

LQ-1

LQ-2

LQ3

10

24.4

0

380.3

7.8

4.2

48.2

8.98

4.78

40.23

2.5

2.14

2.33

2.01

Company on Radar Screen

Nagarjuna Construction A robust order, consistent operating margins and diversification in new verticals along with the growth in the infrastructure sector seem to be working in the favour of the company. The company currently has an order book of Rs 10,000 crore. Total inflows during the year so far have been at Rs 6000 crore. 46.4% revenues

of the company find its source in the new order book. The company is venturing into new areas of business to safeguard against any single sector exposure and downturn. Company is currently into new verticals like irrigation (26% order book), roads (24%), power (T & D, 6%), buildings (22%), oil and gas, and plant.

P E Player in Company: Blackstone On account of the high estimated order intake during FY08, the construction company’s OPM would remain under pressure as initial costs on new projects would be high and over a period of time would cause the company’s margins to remain subdued during that period. Higher depreciation costs and interest charges would OPM as on December07 was 11% and NPM is 5%, Sales Rs 779 crore, PAT Rs 39 crore.

impact the company’s operational performance. Company is planning to put up capital for its core construction business as well as BOT ventures and real estate. This would bring about a necessary cushion to the interest costs, considering the fact that the company is planning to put up capital and not debt.

KS OILS KS Oils has acquired 20,000 hectares (50,000 acres) of palm plantation in Indonesia, where it will invest Rs 230 crore over a period of three years. The plantation will yield 80,000 tonne of palm oil annually. The acquisition will help it secure raw material supplies and avoid global price volatility. KS Oils imports palm oil to refine and sell in north and east India along with mustard oil, its main product. The move will substantially bring down the raw material costs for the company. The investment in the plantation has been routed through the company’s wholly owned subsidiary in Singapore. The plantation yield of 80,000 tonne represents 2.5% of India’s palm oil imports that stands at 3.6 million tonne annually.

Indonesian palm plantations are among the most efficient and productive plantations across the world. Keeping the spiraling commodity and raw material prices it seems to be a prudent strategy to de-risk in the long term. KS Oils, is among the top 5 edible oil companies and the largest processor of mustard seeds in India, is headquartered in Morena in Madhya Pradesh. Company is backed by private equity firms CitiGroup Venture Capital that own 10.38% and Baring Private Asia 6.81% equity stake.The company reported net sales of Rs 1,373 crore and net profit of Rs 82 crore for the 9 months ending December.

BEML BEML pegged its growth on the booming business of mining and Sales (provisional) for fiscal 2007-08, 15.5% higher construction. Expects its contract sales of Rs 3,005 crore mining foray to fructify during the PBT Rs 350 crore up 11% YOY. current fiscal with 2-3 blocks Announced 55% interim dividend. coming to its joint venture. Order book Rs 3,795 crore Company’s M & C business, its Expects 18-20 % growth during the current year traditional focus, has grown 10 % With sustainable potential for business growth in all over the last year to nearly Rs business segments, in particular mining – 1,800 crore and is poised to grow construction and rail and metro,BEML Ltd is poised further with contract mining. A to achieve 18 to 20 % growth on yoy basis 2007 McKinsey report on The It has a 50th year target of reaching a turnover of Indian Earth moving industry has Rs5, 000 crore by 2013. forecast a six-fold growth in the The company is expected to sustain a net profit equipment business from $2.3 growth similar to the 9.6% growth it saw in the billion to swell to $15 billion by previous year ended March 31, 2007. 2015. The company has signed a Planned Capital Expenditure Rs 450 crore for 3 MoU with SAIL to supply mining years equipment worth Rs 400 crore for It has invested Rs 250 crore and the remaining is in 3 years, including a maintenance the pipeline for machinery upgradation and others. and repair contract (MARC) Exports grew 132% to Rs 257.72 crore. The same MARC model would be replicated for coal and other contracts. Its strategy of having 21 mining equipment dealers across the country had paid off with sales of Rs 275 crore for 717 equipment, almost doubling sales yoy. Company is planning to tap the huge market of mine blocks allocated to some 80-100 PSUs and is in the process of JV with some of them. It hopes to have 2-3 blocks to coming to its JV with Midwest by 2009.

Growth Area: The rail and metro business, its second growth area, grew 159 % to Rs 272 crore and has an order books at Rs 1700 crore. The Delhi Metro Rail Corporation has placed an Rs 1366 crore for 192 coaches.BEML has forayed into railway spares with orders worth Rs 102 crore. They expect to be supplying for the Bangalore, Mumbai, Kochi and Hyderabad projects. We are very bullish on the metro rail sector and expect to touch Rs 500 crore this year, quote Mr. V.R.S.Natarajan, CMD. Beml, makes the Tatra trucks for the armed forces and has taken over the tipper business from Tatra Vectra, Hosur, and will make and sell the Hemang brand of tippers and engines from its Mysore facility-which contributes 25% of the turnover.

The News Section

Indian Railways raised the

Rs may reach a decade high of 38.61 a dollar by June 30 as the

freight rate for iron ore by as much as 4 percent starting today, the Financial Express reported, citing officials it didn't identify. The railway ministry also imposed a congestion surcharge of 100 percent on iron ore to be transported to the ports, it said. The levy is much higher than the 60 percent congestion tax so far charged on such traffic. Freight costs for iron ore will increase by 15 rupees a ton to about 185 rupees a metric ton.

nation's interest-rate advantage over the U.S. attracts investors, according to Morgan Stanley. The currency has rebounded almost 1.5 percent from a six-month low touched on March 17 as the Federal Reserve cut its benchmark rate further, widening the differential to 5.5 percentage points, from 2.5 percentage points in early September. The central bank is likely to allow gains in the rupee to rein in inflation that reached a 10-month high. The local currency may advance almost 4 percent by the end next quarter, Morgan Stanley forecasts. In carry trades, investors get funds in a country with low borrowing costs and invest in one that offers higher returns, earning the spread between the two. The risk is that currency fluctuations can erase the profit. Japan's benchmark rate is 0.5 percent and the Fed's 2.25 percent, compared with India's 7.75 percent. A 12.3 percent rally in the rupee last year, the most since at least 1974, helped cool inflation to a five-year low of 3.07 percent in October. A surge in commodity prices, including crude oil, has prevented the Reserve Bank of India from cutting the interest rate. Policy makers will meet next on April 29.

India's manufacturing grew at the slowest pace in eight months in March as demand for goods eased because of high costs, a key gauge showed. ABN Amro Bank NV's Purchasing Managers' Index fell to 57.5 last month from 59.5 in February, according to a report released. A reading above 50 indicates factory output gained.

ECB cap to be relaxed: The government and RBI are expected to raise the ECB ceiling for the current fiscal year from $22 billion to $ 28 to $30 billion.

Inflation Break-up for Week ended March 22, 2008 WPI

22-Mar

15-Mar

% change

Primary articles

234.6

230.5

1.8

Fuel,power

341.4

341

0.1

Manufactured proucts

195.4

195

0.2

Food products

201.4

200.2

0.6

Edible oils

197.6

194.5

1.6

Cement

221.2

221.2

unchanged

Pulses

245.7

242.2

1.4

Vegetables

200.2

190.8

4.9

Minerals

594.8

430.5

38.2

Total

224.8

223.6

0.5

Automobile Industry: Rising input cost Since December, the input costs such as steel, alloys, Auto Sales in March 08 crude oil, copper, aluminium among have 2006-07 2007-08 Growth % sharply increased. Rise is Maruti Suzuki India 6,35,629 7,11,818 12 most likely to dent the TATA Motor 2,26,893 2,14,758 -5 General Motor India 66,543 38,857 71 operating margin of HONDA Siel Car India 62,802 61,325 2.4 automakers in the current March07 March 08 Growth % quarter.Prices of alloy Maruti Suzuki India 64,556 64,421 -0.2 steel has gone up by 8-12 TATA Motor 25,760 24,737 -4 % (nearly Rs 7,000 per General Motor India 4,542 6,836 51 tonne) Aluminium by 18% HONDA Siel Car India 8,487 8,895 4.8 to $2,842 per tonne(Rs113,680),Copper up to record high of $ 8,890 per tonne(Rs 355,600) up by 31%. A 10% rise in steel price may result in around 2% rise in overall mpact of 6th Pay Commission on PSU’s profit margin cost of small car.To make matters

I

worse,metal players expect a surge of around 15-65% in prices of steel,iron,coking coal,copper. Two Wheeler: Hero Honda registered a growth of 15% in sales in March at 3, 20,594 units. Its total sales in FY 07-08 ENDED FLAT AT 33, 37,142 UNITS.TVS Motors, posted 16.83% dip in sales in March at 60,908 units. Sales of Honda Motorcycle and Scooter India Ltd. Grew by 5% to 79,944 units in March.

MTNL BEML Engineers India BHEL SAIL

Employee cost as % of EBITDA 169.6 106.7 102.8 59.3 47.4

Employee cost as % of PBT 478.3 114.2 107.6 65.2 55.3

There are many PSUs where employee cost accounts for a small proportion of their operating profits. GAIL, NALCO, PFC, IDBI and CONCOR are a few companies in this category.

Crude oil rose for a third day in New York as U.S. gasoline supplies fell more than forecast and refiners cut production on lower processing profits. New York gasoline futures rose to a record yesterday after the U.S. Energy Department said inventories fell 3.29 million barrels to 229.2 million barrels last week. A 2 percent cut in refinery runs potentially means a 10 percent gain in prices.' Imports dropped 6 percent to 8.9 million barrels a day, the lowest since March 2007. Crude oil will average $92.30 a barrel this year, according to Sanford C. Bernstein & Co., as declining reserves increase extraction costs. Iraqi Prime Minister Nuri al-Maliki gave militants loyal to Shiite Muslim cleric Moqtada al-Sadr 72 hours to surrender as fighting in the southern oil city of Basra and Baghdad left more than 60 dead.

Indian Economy

Credit Growth: With the RBI indicating that steps would be taken to curb inflation, banks are expected to witness a sharp slowdown in credit growth. Credit grew at about 21% in 2007-08 and may witness a deceleration in the current financial year as interest rates are set to rise. Credit growth in 200607 was at 31%. Growth in credit could drop to a level of 15-16%, if RBI decides to take stringent monetary steps to rein in inflation. Infrastructure and exports are likely to drive credit in 2008-09.The demand for real estates and consumer durables will decline.

HSBC Report: Rs to touch 36 against US$ by 2009

HSBC Global research projects the Indian rupee to touch Rs 36 against the US$ during CY 2009. During the period Oct -8 to Dec 08, rupee is expected to slip to 39.5 though is likely to remain at the level of 40.5 for period April-Sep 08.According to JP Morgan, US$/Rs will stay under pressure owing to likely weakness in the capital inflows. It expects $/Rs to remain at a level of 40-41 range in the very near term with a possibility of breaking above 41 if foreign equity outflows persist. Partly based on expectations of improvement in the US in the second half, it maintains that Rs will strengthen thereon.The report notes that the peak of the investment/capital goods cycle is behind and therefore one could see a gradual softening through 2008 even as the export downturn and lagged effect of the higher interest rates begin to take their toll.The report also notes that, small caps and mid cap firms are expected to see their net incomes clock a growth rate of 34.8% and 32.5% respectively. The 12 month forward P/E is pegged at 8 and 10.2 for the small and mid-caps respectively while for large caps it is 14.2 and the BSE-500 as a whole it is kept at 13.4 times with a net earnings growth rate of 25.9%.

Export India’s export grew 35.25% in dollar terms to $14.23 billion and 21.7% in rupee term to Rs 56,569 crore, the fastest in 4 months. This was partly due to depreciation in Rupee from 39.4 to 39.9 at February end. Various sops dolled out by the Government have also aided fast pace recovery. In January, exports grew 20.5 % gain. Exports accounts for about 15% of Indian economy. For April 07-Feb 08 was at $ 138.43 billion as against $ 112.63 billion, a growth of 22.9% in dollar terms and 8.94% in rupee terms over the same period last year. However, export will fall short of $160 billion target as is expected to stand a $ 155 billion. While the 24.6% External Sector

growth of merchandise trade in the April-December period of 2007-08 was marginally higher than that in the corresponding period last year, service sector exports decelerated by nearly a third to 17.1%. The overall export shortfall was less neutralized by a 42.5 % increase in remittances. The current account deficit rose by 14.5% in dollar terms. Net inflow went upto $81.9 billion in April – December period far overshooting $ 30.1 billion same period last year. Foreign Exchange reserve increased by $67.2 billion in 9 months. Outward FDI from Indian firms stand at $ 10 billion range.

Net foreign exchange earnings from software and other services rose by nearly 50 % in the quarter ended December 07 compared to the same period last year (from $6.167 billion to $9.270 billion).

Net software export contributes $ 2.4 billion. Private transfers from individuals and corporate entities showed a similar near 50% rise. Portfolio investment $14.56 billion ($ 3, 56 billion last year same quarter)

FDI Investment in India

FDI inflow in February 08 was $ 5.67 billion (up by 712%). FDI in April- February 2007-08 were $ 20.13 billion (up 70% from $ 11.88 billion in the same period a year ago). The $ 20.13 billion is the highest FDI in the country during any year. From August 1991 to December 2007, the total FDI received by the country was worth $ 67.32 billion. Mauritius has been the top source of FDI with it accounting for around 45% of the total FDI inflows and $20.1 billion worth FDI coming into India from that country from April 2000-December 2007 period. USA is the next with $4 billion (9.12%) during the same period

and UK $3.4 billion (7.8%). The service sector (both Financial and Non-Financial) received the maximum FDI worth $8.9 billion (19.84%) during April 00-Dec 07), followed by computer software and hardware sector with $7 billion (15.65%) during the same period. In February 2008, China received $ 6.928 billion worth FDI, an increase of 38.31% over the same month last year. In January and February 2008, FDI flowing China was $ 18.12 billion. The actual FDI inflows into China on a YOY in January was $112 billion, an increase of 109.78%.In 200607,China got $ 63 billion worth FDI.

Inflation in India

If one dissects the inflation numbers, the rally is lead by basic metals, alloy and metal products group, which rose by 6.7%,due to higher prices of blooms and billets and slabs(30% each),wire (all kinds 25%), skelps (23%), oromild steel and tensile plates(20%),crude oil(19%),etc. In

contrast, the price index of food articles has gone up only by 0.3%. Government has lowered the import duty on edible oils from 75% to 27% on most of the refined oils, and to 20% for crude oils.

Global financial turmoil and impact on Indian Growth The effect of tighter domestic monetary policy and rupee’s outsized and sudden appreciation against the UD$ and an already mature stage of economic cycle were poised to set the stage for a mild slowdown in economic activity. The recent intensification of the global economic and credit woes has further increased the downside risk to India’s growth outlook. Full year GDP growth in 2008-09 is poised to moderate to be in the 7-8% range, after averaging slightly less than 9% annually in last 4 years. India is likely to be least affected Possible RBI defense:

Asian economy owing to lesser integration and exposure to variations in global growth dynamics. We have a far lesser Export/GDP ratio compared to other Asian economies. However local equity markets are heavily influenced by changes in global risk appetite and FII inflows. Some Indian banks have reported losses on credit derivative exposures necessitating more capital provisioning. Hence credit flow to non-blue chip borrowers like SMEs will be hit. Credit growth is already slowing down.

Options to RBI against this credit crunch are unwinding the MSS bonds Keeping dollar inflow unsterilized Reducing CRR Relaxation of curb on External Commercial borrowings. Infrastructure investment and large corporate capex being largely unrelated to interest rates should continue. However all EMI related consumer demand like housing, automobile, housing materials, white goods and construction and other services are would slowdown. The unfolding global economic woes will probably fail to derail the Indian growth momentum. At worst, India will experience a brief slowdown in the upcoming fiscal year, and recover in the subsequent year.

…& when storm settles down…would Indian elephant still be dancing..? Macro Economic Environment in India: India is growing with a rate of 8.5 % for past 4 of 87GW capacity is needed in next 5 years. In years, second only to China.1 billion + country has terms of steel consumption, India stands among the an economy of the size $913 billion. India needs last in world, a mere 37 kg steel per capita around $500 billion in 11th plan and further $350 compared to 247kg in China and 400kg in th billion in 12 plan in order to support its economy developed nations. Country is expanding very fast in keep growing at a rate of 8%+ in next 10 years. This terms of capacity expansion, employment amount has to be spent only on infrastructure generation, inclusive growth, infrastructure expansion and capacity up gradation for sustaining development and industrial production. These growth. It leads to huge growth in sectors like road initiatives, on the line of PPP model are supposed to transport, freight transport, Electricity, yield results resulting in very high growth and communication and other basic amenities. India has standard of living. huge demand –supply gap of electricity. An addition India is currently facing problem of high inflation and infrastructural bottleneck: Reasons for high inflation are: A very slow Agriculture sector contributing 18% of GDP and growing by mere 2.7%.We believe, one more green revolution is needed in the sector. Eventually, consequent to high food inflation and higher value realization per unit of food in India and also globally, farm sector would start attracting bigger players, corporate and farmers back to the farm sector expansion. Farm sector in India holds immense potential in it and is about to show dramatic changes. We believe, more and more investment is about to follow farm sector and in medium term, within 2-3 years, the face of Indian agriculture is about to change. We are expected to see more productivity and investment in farm sector which would not only cater to domestic demand, but also likely to earn export profits in terms to farm goods. One more lucrative sector would be food –processing and cold-storage.

Another reason of higher inflation is the higher mineral prices which challenge productivity and growth in infrastructure, capital goods and manufacturing sector very heavily by making several sectors and industries unattractive. As Indian corporate is hunting globally, this could tam raw material prices. China, which is often attributed to high mineral consumption, thus driving their prices in world market, has already started showing signs of a slowdown. Chinese steel industry is already producing more than domestic demand and country is cooling down from nearly 11 % growth rate to 9.5% in last year. Hence a reduced demand for industrial inputs from China will ease off price pressure of minerals and metals in world market, making them cheaper for next growth driver, i.e.India.

Monetary Outlook of India: Benchmark Interest rates in India are at all time high at 7.5%.All the rates, like REPOs, Mibor, CRR, SLR and other are at their peak. This show, RBI and the Government has kept monitory discipline very tight. This is very significant in a way that, consequent to various fiscal and monitory policy initiatives, Inflation, the prime concern is likely to

cool off in about 2 quarters. Global easement of prices of core commodities, both farm and industrial, as predicted by IMF, in 2-3 quarters, slower demand from China and USA, supported by a better farm production in India will automatically ease down inflation in India

. Two tricky steps taken by Government here are very crucial. They are Fiscal expansion and monetary contraction. Policy makers in India are aware that growth as well as Inflation control is two equally important factors for India’s economic health and sustainability. By fiscal expansion, Government tries to increase public and private expenditure, more investment, capacity and infrastructure expansion and easy borrowings. As a monetary contraction, RBI is trying to regulate money flow in the system, managing the foreign inflows to optimum level and also handling Rs against US$ to a level which eases domestic inflation with farm import in short term …and also making key export unit competitive by providing subsidies and incentives. RBI is well placed in the monitory scenario to handle any downside risk in the country in the wake of global slowdown. Now, while the inflation control measure mostly related

to fiscal steps, it gives a greater head-room to RBI keeping its monitory tools in tact for a later part of economic expansion. A virtual scenario is expected wherein; inflation could be cooled off without much tinkering with interest rate.i.e keeping rates high. If the economy sustains a growth rate of 7.5+ percentage point in a scenario of world slowdown, and higher inflation with a nominal interest rate 14.75%+…it is in deed a very promising scenario. We believe, after taming inflation to a comfort zone of 5% around, RBI will cut rates to boost economic growth to higher level. This is expected to be done in the 3rd quarter of current fiscal where global commodity prices will show a downward movement.

Reasons to believe that global commodity prices will cool down by year end: Global economic slowdown will start showing its anti-inflationary effect by the end of year. Crude oil rates, one of the most important factors for Indian economy will settle to 85-90 US $ per barrel.US, EU and Chinese slowdown will ease demand pressure on crude. Better refining capacities and new installations will add to supply boost. Already above average prices, fueled by speculations will come to equilibrium levels. Higher usage of alternative and renewable energy along with better prudence on energy savings will also add to lower fuel prices. Newer capacities in Brazil, Canada, Venejuela, Australia and Russia will substantially increase the supply. Global food prices, however pose a great risk and challenge. However, provided proper policy initiatives taken in India, there is a good chance that, in India, farm output can substantially

be increased. This is because our per acreage output in India is much below the world average and developed countries. Consequent to food shortage, country is supposed to take initiative to increase its productivity per acreage. The same phenomenon is to be observed in all developing countries where a poor per acreage yield indicates that farm output can be substantially increased without increasing agricultural land. There is a 3rd important observation to be made in world, in the last part of CY08.US dollar will substantially devalue compared to major currencies of the world. In Indian scenario, it means a lower cost of import; especially crude oil import. This has already hedged to an extent the rising crude prices in Indian Scenario.

Guest Column: Nav Bhardwaj (Equity Analyst)

Investment in the Indian Market today: These words “Somewhere ages and ages have hence: Two roads diverged inspired in a wood, and I—. I took many a the one less travelled by,. men, And that has made all the who difference. ...”- Robert ventured Frost 1920. into the wilderness where many wouldn’t dare and proved a point that immortalized their names in the annals of history. But I wonder if Mr Frost (God rest his soul) would state the same thing if he were in the present financial fiasco in our Indian markets. When caught in a stampede it won’t be categorized as bravery if we choose to run against the mob!! The SENSEX closed 490 points down and the NIFTY’s 124 in the red, but nobody is actually scared to death (as the case would have been a year or two ago). Volatility is the name of the game. While traders and punters go short or long on the drop of a cue from the international markets! While orders accumulate through the roof as soon as the trading hour begins! The market does everything to prove the average local sentiment wrong and a lot of money is lost......... Talk of the IPO market...... Does anybody any longer even read the prospectus before investing (read betting!!!) his money on the nascent scrip? I doubt it..... IPO’s had become a sure shot money multiplying mechanism and anybody and everybody not related to the

capital market for miles together had begun to believe in this dictum of unprecedented unimaginable irrational gains on the very first day of listing!!! Until the bubble burst and the coach suddenly turned into the pumpkin! Coming down to our very own stocks........ Where research analysts used to be acknowledged for predicting the top, suddenly became hero’s if they would predict the bottom!! On the other side of the table said somebody..!!!! The Price/ Earnings ratios are on getting corrected to newer levels. Estimating (guessing) the correct levels are the name of the game. Valuations are getting to more realistic levels. 2008 has robbed close to 30% of the markets sheen. While the indices are nothing but a gamut of 30 to 50 stocks, but the ones outside this gamut have been behaving no different. As the market prices plummet, while some stocks come down to their real value, others depreciate only to be available at a discount to the real value..... Diamonds in the dust I would call them! But, doesn’t it seem to be a little simple that all one needs to do is hunt for these ‘diamonds in the dust’ put your capital into it and watch it grow! On the contrary this is where the frustration begins! A lot many factors go into deciding the destiny of the stocks. If you are reading this article probably you already know a lot about these external factors influencing the `Current/ Future Market Price’ of the stock.

The FII’s – today’s market makers and breaker’s. We should certainly watch out for what their international monetary pressure they are facing. The monetary policy of our central banks, the demand supply scenario, the levy’s and duty cut changes an industry faces..... all this and much more..... But what I would suggest is that if you have done your due diligence and find your

diamond in the dust..... Buy it and ape `Rip Van Winkle’ (who went off to sleep for twenty years!!!).well may be if twenty sounds a bit too long wait for a year at lest by then the dust would have settled and your diamonds shall certainly be shining. And if you are still not convinced about anything and stand confused depending on your risk appetite go for an apt debt equity mix and simply wait till the dust settles!!!

towards….. Political awareness

India, China and Left A difference between US and THEY…is not just what WORLD is observing now. This is also not what we as mute captives of farcical democracy, are being witness to….But rather this is the difference…our future generations…our fore-children will pay

for…and will definitely ask us the answers…Answers to questions which neither I and you have nor our people ,at the helm of affairs,have.People like,Prakash Karat,Pranab Mukharjee or National Security Advisor Mr. M.K.Narayan has…..

What is the difference….? The difference between two countries…India and China…..I am not talking about the differences on development or economic grounds. Though they are also part and parcel of it…This difference is what made a Chinese to call our ambassador at 2.30 A.M.in the night, summoned and being harshly And what in turn New Delhi gets in return…

scolded about the lame position, this country of 100 billion has.It also gets reflected when our government takes all the pain and brutally to suppress the rightful demand and peaceful protest of Tibetan just to appease the Chinese God Fathers.

Arunachal Pradesh in the official map of China….C.M.of Sikkim and Arunachal Pradesh not being allowed in China. A large 32,000 square Kilometers of Indian Territory. All this just because we are weak..Much much weak country than anybody on the planet. Let me put few facts here. China has for years armed, trained, supplied and supported logistics to armed militants in Assam, Nagaland, Manipur and Mizoram. According to a report from our own internal affairs ministry documents. There are strong evidences that China supports, arms and trains all the Nexal groups in India. They are funded and trained to run naxalite movements in the country to de-stabilize Indian homeland. This is the report of Internal Affairs Ministry based on RAW and IB documents. China has long given political asylum to many militant leaders in North-East. China has never accepted Jammu and Kashmir, an Indian territory. In fact Pakistan has given thousand of kilometers of Indian

land, that too very sensitive, strategically, in Siyachin to China. China is the one country, which has opposed, vociferously, India’s entry to Security Council. One more crucial input….Chinese Congress of Communist Pary of China,the apex body has passed a resolution that talks about the word….”Aksaai Chin”..The meaning of this word is Greater China,that typically includes entire northEast,Bhutal,Nepal,Mongolia in Northern front,part of Myanmar and far –eastern islands.And this is not just a theoretical concept…China is moving strategically and tactically to the Aksaaichin ambition.To know the ground realities you can talk to people in the border areas, how each day China is moving ahead into Indian Territory and is eating up our crucial lands and posts without our Government in the Air-conditioned Parliament and power corridors to even take a pinch of.

Now the bigger question….Is Tibet a Chinese territory? No… if you go by the Historical evidences….Tibet has never been a Chinese part…It is as an independent nation as Nepal or Bhutan would be…..It was not even a Chinese territory in the

British colonial rule. It has always maintained its independence and exclusivity in the world political map..

Now, is Tibetan independence important for India? Yes…Strategically an independent Tibet is very Himalayan region.Bottom line is to understand crucial and important for India. It would act as a that Chinese ambitions and intentions are very natural cushion to India diplomatically. It is also lethal and dangerous for the sovereignity and important for India from ecological point of view as existence of India.We need to well. Our important river glaciers, Gangotri, strategically,economicall and even militarily Yamunotri and other, are in Tibetan region. As prepare ourselves against Chinese might.China is statistics says…China can any day create ecological the most important danger India faces disturbances in the region whose repercussions today…..And China is never your friend…it can would be felt on India. I and you can not even never be….It has always seen India as a competitor imagine the scale of damages to entire Northern ,through skeptical eyes.It has already taken Indian gangatic plane where any ecological strategic and military advances in the nearing disturbances in Glaciers region can collapse our regions covering whole of Indian territory.It has agriculture and bring in huge flood and damages to tie-ups with Myanman,Nepal,Pakistan and even entire north India. Do not take these things as day Bangladesh…and these are diplomatic as well as dream as already China has shown ,few indications military.It has its huge fleet in Bay of of these sort by building a road to Mount Bengal..covering India through sea as well. Averaest,through ecologically, extremely sensitive So what our Government is doing..literally nothing as usual… Now comes our Glorious LEFT..CPM..Communist Party of China…opps ,sorry Communist Party of India, Marxist. On not a single occasion they have shown their solidarity for India nation. You know..why there are two parties..CPI and CPM..Actually there was only one party CPI, before Chinese invasion in 1962...After invasion, one side…and the bigger side..Has supported China..Literally against India…Now that is CPM They are the one, who were the only creed to oppose Pokharan bomb blast in 1974 and in 1998.Now they are the same, who are championing the cause of national sovereignty against nuclear deal with USA and NSG. The underline..China, their Godfather, which not only ideologically feeds them but also funds them, does not want India at the We are a country…which used to give our nuclear map of the world. They land,,jewels,,daughters,,and money to appease the intruders are the people who always have through ages..Tamoor, Zanjess, Gazanies, and most recently been against Israel in Palestine, britishers….And we are probably repeating the same..trying to USA in Afghanistan and appease china Iraq and on number of occasions have vociferously cried against USA, West or any other nation, for that matter. And what is their response, when it comes to atrocities against Tibetans by China..We can understand where their human rights and equity goes, when it comes to their Ideological homeland-China. And to make the History, little brushed up in your minds…Indian Communists were the only creed in the world that supported China against massive killing of more than 10,000 students in Thiamine square. I quote Mr Prakash Karat and Sita Ram Yechuri… “Happenings in Tibets are an internal affair of China. India or Indians must not meddle with the issue against China” Mr Prakash Karat “ Dalai Lama must not speak against China from Indian Soil. He should learn to behave himself” Mr SitaRam Yechuri.. This article is personal opinion of Mr Akshar Prem and he is sole responsible opinions/views stated herein. Magazine may, or may not vouch his ideas and views.

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