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The Navhind Times I Monday June 13, 2016

Magazine for
Business &
Consumers

navhindtimes.com

vox populi

A students hopes dashed


By Adv. Jatin Ramaiya

of the Governor of Meghalaya by


filing a writ Petition in the High
Court of Meghalaya and by filing
as special leave petition in the
Supreme Court of India. Moreover they said that they are in
constant touch with Apex Learning Technology to get the issue
resolved.
Goankar in his complaint said
that he was kept in dark about
all the above issues and therefore, the act of the institute per se
constitutes deficiency in service.
He accused the institute of mental
agonies, inconvenience, travelling

he Consumer Disputes
Redressal Forum, North
Goa, recently awarded
costs, compensation and
refund to Vishal Gaonkar,
aspiring law student. Gaonkar had
gathered from various sources
that Engineers Learning Institute
was offering law degree courses
and hence approached its office
at Miramar for admissions. However despite paying the entire
fees to the institute no study
material was provided to him. The
representative of
the institute asked
him to prepare for
exam to be held in
the month of June
2013 without providing adequate
support. However
no exams were
conducted which
led Gaonkar to
approach the institute several times.
Due to the
delay tactics and
false assurances
from the institute,
Goankar lost hopes
and addressed
a legal notice to
them to recover
fees amounting
to Rs 46,800. It
expenses and irreparable loss for
was submitted by him that the
which he deserves to be compeninstitute is functioning as a inforsated. After perusing the records
mation centre for Apex Learning
and evidence the members of the
Technology Ltd who is affiliated
Forum observed that the opposite
to CMJ University in Meghalaya.
Parties have not appeared to conFurthermore the reply by Engitest the claim of the complainant.
neers Learning Institute stated
Hence, the
that they are only authorized to
deficiency in service on their
collect the fees of the courses
part is proved. While allowing the
from the prospective students
complaint the Forum observed
and then to deposit the same
that due to the cancellation of exwith Apex Learning Technology
amination, the complainant could
Ltd.
not complete his studies and fulFurther Gaonkar was informed
fill his dreams.
that somewhere in the month
of May 2013 the government
of Meghalaya noticed some
Latest
irregularities in the functioning of the CMJ University had
BSE Sensex
26,635.75
asked it to stop operations and
Nifty
8,170.05
therefore the exam could not
be conducted. CMJ University
Re/ US $
66.96
thereafter challenged the order

Rs/ UK Pound

95.46

farm produce prices


Vegetables Retail rates at Goa State
Horticulture Corporation Ltd. outlets (Rs per kg)
hLadyfinger 34.80
h

hCauliflower
h
(piece)

hCabbage
h

34.70

hChilly 62.00
h

30.80

hCluster
h
Beans

33.00

hOnion
h

hFrench
h
Beans

52.00

hPotato 26.90
h

hCarrot
h

37.00

hTomato 57.50
h

17.80

*Rate as on June 11, 2016

@navhindtimes

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If Britain leaves that will give other countries


courage

The Brexit shock


By Tensing Rodrigues

hree days from now, on


June 23 2016 Brits are
going to decide whether
they wish to continue to
remain in EU or leave it.
The polls are showing a marginal
tilt in favour of leave. A poll conducted for the Observer put Brexit
ahead by three points. Another
poll by YouGov, puts Brexit four
points ahead. Leave at 45 per cent,
remain at 41 per cent and undecided at 11 per cent. It is this last
that could swing the result either
way.
Add those things together,
the shock impact, the uncertainty
impact, the trade impact, and
Brexit would detonate a bomb
under the British economy from
which it would take years to recover, warned PM David Cameron.
Britain is already feeling the heat
of a possible exit from EU. The
pound has been swinging sharply
against the dollar, buoyed by the
uncertainty. It lost as much as 1.1
per cent against the US dollar last
week, falling to a three-week low,
even in the face of weak economic
data in the US.
One-month volatility of the
pound versus the other currencies
jumped to 21.9 the highest since
the depths of the financial crisis in
February 2009. The worst part of
Brexit is that it could be just the
first straw on the camels back. It
could trigger a cascade of events
that could fling Western Europe
and then the global economy into
a crisis.
Today I want to look at just
one aspect of the problem, viz. the

possible effect of Brexit on gold


price. Economists had predicted
that gold could rise as high as Rs
46,000/10gms if the Grexit had
occurred. Similar could be likely
in the event of a Brexit when gold
could easily touch Rs 32,000 per
10 gms and possibly go beyond.
With US rate hike not likely to happen any time soon probably nothing could stop
golds ascent.
Metals analyst James
Steel at HSBC feels that
gold prices could explode
if Britons decide to vote
for leaving the EU. Gold
has already rallied massively this year given the uncertainties of the global economy; the
first quarter of the year has been
its best in nearly three decades,
gaining around 18 per cent to the
end of March. Steel feels that the
uncertainty surrounding the referendum could push the rally even
further. A falling dollar and only a
modest recovery in oil prices could
add further to the sheen of gold.
The outcome of the referendum

is difficult to predict. Britain is


caught between the deep sea and
the devil. That is between economic consequences of leaving EU and
the mounting pressure of immigration on public services.
George Osborne, the British
Chancellor of the Exchequer has
been an outspoken critic of Brexit.
He feels Britain would lose
control of its economy if
it left the European Union.
Analysis from the OECD,
International Monetary
Fund, Institute for Fiscal
Studies, National Institute
for Economic and Social Research and Bank of England
have all warned that Brexit would
have a negative effect on Britains
economy. Essentially, it would put
away the biggest slice of Britains
export and tourism market hurting
incomes and employment.
The EU is the UKs most important trade partner, accounting
for half of all British exports and
imports. EU membership ensures
lower trade barriers, which makes
goods and services cheaper for

British consumers and boosts its


exports. According to a London
School of Economics study in 2015
the Brexit could reduce Britains
income by anything between 1.1
per cent and 3.1 per cent by about
50 billion per year.
But that seems to be a distant
problem in the face of the immigration threat, which hurts the
common voter day in and day out.
According to a report by Migration
Advisory Committee the arrival of
one million low-skilled workers in
a decade has increased pressure
on public services such as the NHS,
schools and transport. The report
also found that the British education system has failed to prepare
children for low-skilled jobs, placing them at a disadvantage against
foreign workers. Employers prefer
to hire immigrants because their
literacy and numeracy is better
than British candidates.
And the latest bolt from the
blue. Whopping 88 per cent of
people in Holland polled by a
Dutch newspaper said they would
be in favour of an in or out vote
along British lines. They hope
Nexit will follow Brexit. According to Harry van Bommel, MP
for Hollands Socialist Party, If
Britain leaves that will give other
countries courage. We cannot go
on the way we are. The eurozone
will break up eventually. People
distrust Europe and some people
even hate Europe. It is an existential crisis. Is it time already to
grab the gold?
(The author is an investment
consultant. Readers can send their
comments and queries to investment.ideas.shop@gmail.com}

Airlines wings cropped

aking serious note of the indiscriminate policies of domestic airlines on


flight cancellations and refunds, the
Civil Aviation Ministry proposed a
number of steps to rein them in.
Civil aviation minister, P Ashok Gajapathi
Raju said that the proposals, which will be
finalised soon. The proposal will be put up
on the ministrys website for 15 days during which stakeholders are free to give their
suggestions and comments. After this, the
ministry will finalize the proposed amendments and implement them very soon, an
official statement said.
The minister outlined the proposals. All
taxes, levies and user and airport development fees shall be refunded in case of noshow and cancellations. The compensation
has also been significantly enhanced to up to
Rs 20,000, in case of denied boarding due to
over-booking.
In case of flight cancellations announced

within 24 hours of departure the compensation amount has been enhanced to up to Rs


10,000. This apart refunds will also be applicable on all fares including promotional and
special rates.
It shall also be the prerogative of passenger
to decide whether to get cash refund or hold
the amount in credit. Also taking note of arbitrary levy on excess baggage, the charges
for up to 5 kg beyond the 15 kg limit can be
no more than Rs 100 per kg, it is proposed.
The regulations are also being amended to
ensure significant improvement in the facilities to persons with disabilities.
The proposals evoked mixed reactions. It
is not a good idea for the government to get
into the pricing mechanism of an industry
which is already very competitive, said
Amrit Pandurangi, senior director, Deloitte in
India.
These are positive proposals, but they are
expected to impact very few passengers only.

These might also lead to overall ticket price


increase as airlines will seek to compensate
this loss of revenue by passing it on, told
Sharat Dhall, president of Yatra.com. Though
the steps are well meaning, the government
should rather focus on long term objectives
like development of infrastructure and regional connectivity -- to give a boost to passenger traffic and expand the market which is
still hugely under-penetrated, he said.
A look at the terms of flag carrier Air India
revealed that the airline, on a one-way ticket
to Mumbai with a base fare of Rs 2,527
charges Rs.2000 towards cancellation if
made more than 24 hours before departure.
But if it is within 24 hours, the levy comprises basic fare plus airline fuel charge. IANS

investors guide

Buy on dips

uy on dips till Nifty holds above 8000 levels. At the same


time it is advisable to keep leveraged positions partially
hedged considering the possibility of rise in volatility in days
to come.
The India Meteorological Department last Wednesday announced the arrival of the monsoon rains in Kerala. It marks
the beginning of the four month June-September southwest
monsoon season in the country. IMD has forecast above normal
rains for 2016. The government is counting on above-normal
precipitation this year to help control food prices and boost farm
production.
Meanwhile upcoming US
Federal Reserves two-day
policy meeting startingon
Wednesdayand followed
by UKs referendum on EU
membership onJune 23have
the potential to roil markets. Brexit is weighing down on the markets globally and thats
pretty much weighing on the Indian markets as well. Until such
time this event is behind us we will continue to see some kind of
pressure on the market. Anxiety over the outcome of upcoming
global events will keep our markets on the edge.
Among key macro economic datanext week, the release of
consumer price index (CPI) data for the month of May 2016is on
Mondaywhile inflation based on wholesale price index (WPI) for
the month of May 2016 is scheduled to be releasedon Tuesday.
Apart from macroeconomic data and trend in global markets,
the movement of rupee against the dollar and crude oil price
movement will dictate market trend in the near term. Other
global events in the coming week includes Bank of Japans
monetary policy statement on the factors that affected the most
recent interest rate decision and Bank of Englands monetary
policy committee members vote on where to set the rate.

weekly
market
outlook

Vijay Singhania, Trade Smart Online

sector watch

scrip tip

Full-scale recovery
to take time

Sales set to plateau

eak consumer demand in the


FMCG sector has bottomed out.
However full-scale recovery
is still several quarters away. Prohibitive valuations are also a deterrent to
investing in FMCG stocks. During the
latest quarter companies like Asian
Paints, Marico and Godrej Consumer
Products reported strong volume
growth. On the other hand Hindustan
Unilevers faced marginal increase in
volumes while GSK Consumer reported
flat business. Bajaj Corps also disappointed with drop in volumes and
Titans watch business plunged by 19
per cent. Looking ahead improved
operating leverage is expected to drive
profit margins in future. Monsoons are
vital for demand in FMCG goods but revival in rural demand is of paramount
importance to the industry. India is
expected to receive excess rainfall
especially in September and so the
agriculture sector will certainly get the
much needed solace. Recovery in rural
consumer demand remains the key to
growth for FMCG players. But they will
have to strive to ensure fair share of
rural markets after consumer demand
picks up. As of now the rural consumer
wallet is mostly deployed towards loan
repayment, ensuring food security and
other discretionary spending.
Reliance Securities

HOLD

rindwell Nortons (GWN) fourth quarter revenues and gross profit surpassed estimates riding on robust ceramics sales. However abrasives
segment that comprises 65 per cent of salescontinued to underperform. As such the sales growth of the company is tapered due to peaking
of market share in certain segment, pricing pressure and double digit fall
inexports. GWN is well placed structurally in the long term with capacity
utilisation at 65 per cent and robust new product portfolio which is 30
per cent ofsales. However on account of delayed cycle uptick the growth
potential of the company is limited.

Edelweiss

Picture perfect

ROS Internationals fourth quarter performance is better than expectations. It has substantially brought down receivables due to realignment
of catalogue. In the current year the company is confident of containing
receivables days at current levels. EROS has healthy movie slate for 2017
of Hindi and regional movies which is expected to be strengthened further
during the year. Importantly EROS has been able to pre-sell satellite rights
for most of its key movies. EROS: US would now pay EROS 40 per cent of
the production cost of a movie and a 20 per cent mark-up on the same as
against 30 per cent of the cost and 30 per cent mark-up earlier). EROS will
also take stake in EROS: USs global digital business at a nominal value.
Higher revenue from catalogue sales, new content sharing agreement with
EROS:US, lower interest cost will result in higher earnings. The best period
for content monetization for EROS is yet to come. 
IDBI Capital

Restricted upside

rompton Greaves (CG) fourth quarter performance was marred with


multiple write-offs from sale of overseas subsidiaries and demergerrelated adjustments. Though discontinuation of loss-making overseas
business is seen as a near-term positive trigger in the long-term the
stock will be impacted by delayed recovery in power system business
and low margin profile. 
Reliance Securities

Target Price

` 700

Current Price

` 674.00

Grindwell Norton

buy
Target Price

` 285

Current Price

` 212.10

Eros International Media

SELL
Target Price

` 59

Current Price

` 70.90

Crompton Greaves

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