3G auctions may miss January date

NEW DELHI: The auctions for 3G spectrum, vital for next-generation telecom services such as video-calling and broadband Internet on mobile phone
s, are set to be delayed beyond the scheduled date of January 16 and may take place in February, according to a top official in the communications ministry.

“The auctions have been delayed as the Cabinet is yet to approve some of the key proposals regarding the auctions,” the official, who asked not to be named, said.

However, industry executives said the auction may end up being deferred for a longer time. “If the auctions are delayed by more than a month, they may not happen during the UPA regime. This is because the code of conduct for the general elections will kick in from March 2009,” said a top executive with a telecom company that is looking to participate in the auctions for third generation or 3G, spectrum.

This executive, who asked not to be named and his company not be identified, also said he had received information from government officials on the auctions being deferred.

According to this executive, the primary reason behind the department of telecom’s (DoT) move to defer the auctions was the poor response to the 3G pre-bid conference on Tuesday by new firms, including foreign players.

While DoT has allowed foreign operators to participate in the 3G auctions, most international players have indicated that they are likely to give it a miss. Global operators have also pointed out that the auction guidelines have been structured to favour only existing Indian operators and have sought several changes to the country’s 3G policy.

Another possible reason could be that foreign players and some Indian companies such as Reliance Communications and Swan have sought additional time to study the information memorandum, which contains all details regarding the auction.

Satyam asks World Bank to apologise

BANGALORE: Satyam Computer Services said it has asked the World Bank to withdraw "inappropriate" statements about the Indian outsourcer and to i

ssue an apology for harm done to the company.

The World Bank said Satyam had been declared ineligible for direct contracts with the bank for eight years, effective from last September.

New York-listed Satyam said it had asked the World Bank to issue a new statement apologising to Satyam and provide it with an explanation of the circumstances relating to its statements.

"Satyam further advised the Bank that Satyam would evaluate all possible options in view of both the Bank's inappropriate public statements and its response to Satyam's requests," it said in a statement.

The World Bank said by it stood by its earlier statement. "The Bank stands by the statement issued on its India website on 23rd December," said Carl Hanlon, a World Bank spokesman in Washington.

The Bank said that, "Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charged for its subcontractors."

Shares in Satyam, India's No 4 software services outsourcer, fell after the Bank said it had barred it from business.

The stock was already under pressure after the firm said last week it would pay $1.6 billion for two infrastructure firms in which its management held stakes.

It dropped the plan within hours after investors reacted angrily but its shares have since plunged 40 per cent.

50K Indian IT jobs may go: UNITES

BANGALORE: Over 50,000 IT professionals in the country may lose their jobs over the next six months as the situation in the sector is expected t
o worsen due to the impact of global economic meltdown on the export-driven industry, a forecast by a union of IT Enabled Services warned.

"...there would be 50,000 job losses (IT and BPO put together) over the next six months," Karthik Shekhar, general secretary of UNITES India, a politically neutral union of ITES professionals told PTI.

The job loss in the IT and BPO sector in the country topped 10,000 in the September-December period, Shekar said.

While employees of medium-sized companies bore the brunt of job losses in the September-December period, it's going to be their counterparts in the big and small firms who would increasingly face the axe in the coming six months, he said.

UNITES India, affiliated to the global union United Network International, suggested that the companies in trouble could resort to salary and incentive cuts without trying to "squeeze" the staff, rather than adopting the "layoff path".

Employees are willing to take such cuts for 12-16 months till the demand picks up again, when such benefits should be restored to them.

Shekhar said senior officials of the industry had concurred with the figure of 10,000 job loses in September-December, stating that it accounted for "bottom five per cent of the performers".

Consultations with the union's counterparts in the US and UK suggested that slowdown would continue to hit the offshore sourcing space, he said.

He said factors like continued slowdown, likely "tax application" to companies outsourcing jobs under the new US regime and tightening in regard to H1-B visas were among the key reasons cited for the acceleration in issue of pink slips.

Ghajini with English subtitles for hearing impaired

BIG Cinemas, the exhibition arm of Reliance BIG Entertainment Ltd (RBEL), will screen Ghajini with English sub-titles in select cinema halls here from next Friday for the hearing impaired and for those who don't understand Hindi.

Hot: Do not miss our Ghajini special

"We have decided to do this especially for the benefit of the hearing impaired and those who don't understand Hindi. The idea is to ensure that the movie is viewed by maximum number of people," Tushar Dhingra, COO of BIG Cinemas, said in a press statement.

According to Dhingra, BIG cinemas will continue with the sub-titles facility in the company's future releases as well.

The sub-titled digital prints of Ghajini will be screened at BIG cinema's property at Vadala in central Mumbai and at the Metro Big Cinema in South Mumbai.

"Digital cinema technology makes it easy to introduce such innovations," said Patrick Von Sychowski, COO, of RBEL's Adlabs Digital Cinema, which provides the DCI-grade digital cinema services, hard drive and optic fiber connectivity and distribution.

NU Nayak, deputy director of Helen Keller Institute for Deaf & Blind, has welcomed the initiative.

Starring Aamir Khan and Asin Thottumkal, Ghajini hit screens on Thursday.

Ghajini: Movie Review

Director: A R Murgadoss

Cast: Aamir Khan, Asin, Jiah Khan

Rating: **


Aamir Khan suffers from short-term memory loss in Ghajini, a cerebral disorder by which his memory lasts only for 15 minutes. Seemingly director A R Murgadoss suffered from the same while deriving from Memento, for he seems to have retained only about 15% of the original masterpiece and fabricated the rest as per his formulaic sensibilities.

So while you still have the Polaroid camera, post it notes and a tattooed body from Memento, the nonlinear narrative and conspiracy theory is compromised for a prolonged romance track and exaggerated revenge drama. Sadly gimmicks like 8-pack abs or trimmed hairline can’t cover up loopholes of a flawed script.

Sanjay Singhania (Aamir Khan) has been hit on the head which gives him recurring bouts of amnesia, almost every fifteen minutes. He is hunting for a person named Ghajini (Pradeep Rawat), and to remember his target, he has inscribed his initials and related clues on his body, has pasted post-it notes all across his apartment and carries a Polaroid camera to click pictures of people important to him.

An investigating officer gets hold of his daily diary that gives a background account of his character. Sanjay is an affluent industrialist and falls in love with a girl named Kalpana (Asin). The diary changes hands from the inspector to a medical student (Jiah Khan) but the flashback account continues to stretch from the first half to the second with a long-drawn-out love story between the two. With ample song-dance-romance, the story is Indianized but that’s the only redeeming factor for the director fails to exploit the psychological side of the story.

Don’t cry a spoiler when I say that Ghajini killed Kalpana since that is awfully obvious from the very start with the tattoos on Sanjay’s body and his quest to kill Ghajini. And if you still expect a twist in the tale for some suspenseful impact, be prepared to know that this one just ends up being a regular revenge drama. The action sequence in the climax is shamelessly stretched, as long as Sanjay can sustain his memory, for fifteen literal minutes.

At its core, Ghajini is essentially a romance track culminating into a revenge drama. Only externally it is sewed up with the memory loss syndrome which could have been the highlight. And even the memory loss isn’t sensibly justified in the script. The major flaw of the film is how Sanjay remembers Ghajini’s sidekicks and traces them from nowhere. Almost every scene seems to have been written to cover up the earlier penned scene.

The length could surely have been trimmed for the extra runtime doesn’t add to the conviction like in a Lagaan or a Jodhaa Akbar. A R Rahman’s music is melodious and songs are choreographed with typical South Indian flamboyancy. Strangely the background theme piece sounds like Sare Jahan Se Acha.

Aamir is not bad but one expects more from the actor than Rajnikant style amplified-action sequences or anger bouts reminiscent of a hysterical Kamal Hassan from Abhay. Asin is pleasing and Jiah Khan is decent. Pradeep Rawat hams in the title role.

If you are expecting an intelligent psychological suspense thriller, watch Memento. If you are looking for an intense desi action masala watch the Tamil Ghajini. For the Hindi version doesn’t show much difference other than trimming the twin villain from the original into a single baddie. By now we are prone to digesting the exaggerated action in south cinema. It would still take some time to accept Aamir Khan doing the same. Rather, the question in first place is, would we ever want to accept Aamir in such avatar?

Border flurry on both sides

New Delhi, Dec. 25: Eyewitnesses in Barmer, Jodhpur and Jaisalmer in Rajasthan and in Ferozepur in Punjab are reporting intensified military movement on both sides of the international border with Pakistan.

But sources in Indian Army headquarters in New Delhi are insisting that there is no order for a mobilisation of forces. “Whatever movement is being reported is normal for this season,” an officer at army headquarters said. “This is the time when we have exercises and a certain amount of movement takes place.”

Senior officers of the Border Security Force have reported “unusual movement” on the Pakistani side of the border. The Pakistan Air Force’s intensified sorties are already known. The Indian Army has also deployed quick reaction teams (QRTs) on some points along the border.

In the procedure of deployments, QRTs precede the movement of bridging equipment — to cross canals in Punjab — and of heavy guns.

In anticipation of hostilities, the BSF is put under the army and so is its counterpart, the Pakistani Rangers. Across border points in Rajasthan, BSF sources said, posts held by the Pakistani Rangers are being taken over by the Pakistani army. During the 2001-02 mobilisation, the BSF was asked to report to the army through a formal order from the cabinet committee on security. No such order is known to have been issued for now.

The army’s 10 corps, headquartered in Bhatinda in Punjab, is also moving assets. The army formation is not known to be an offensive force.

Since the Indian Army adopted a new doctrine, termed “cold start”, a large-scale mobilisation of the armed forces can follow an assault. In 2001-2002 such a doctrine was not adopted and a full-scale mobilisation was ordered.

A large-scale mobilisation is difficult to conceal because it means that not only troops, but also hardware — tanks, cannons, field shelters and ambulances — are moved in railway rakes and by long convoys of road transport. Primarily, it will involve the movement of strike corps from Bhopal, Mathura and Ambala.

The army’s strike corps are its largest formations with extra-heavy contingents of tanks, artillery and troops supported by the air force.

Pakistan says it wants friendly ties with India

ISLAMABAD: Pakistan’s civilian leadership on Sunday reiterated its desire for friendly relations with India and said it would not allow the country to be used for terrorist activities. It also kept up assertions that it was prepared to respond to any military strikes by India.

Prime Minister Yusuf Raza Gilani said Pakistan “wants good relations with all its neighbours, including India and Afghanistan, and will never allow its soil to be used against any country by terrorists or non-state actors.”

Mr. Gilani said Pakistan condemned the Mumbai terror attacks in the “strongest terms” and recalled that the government had offered to cooperate with New Delhi in the investigation.

He was speaking in Naudero, the hometown of the assassinated Pakistan People’s Party leader, Benazir Bhutto, in the Sindh province ahead of the first anniversary of her December 27 assassination.

Significantly, Mr. Gilani sought world help in defusing the current tension between the South Asian neighbours. “We urge the world to help defuse the situation,” he said.

But Mr. Gilani, who was speaking to journalists after visiting Benazir’s grave at Garhi Khuda Buksh, also said that if war was thrust upon Pakistan, “there should be no doubt that the whole nation, the political leadership and the armed forces will stand united to defend the country.”

Separately, Foreign Minister Shah Mehmood, told journalists in his hometown Multan that “we are the torch-bearers of peace and remain committed to our desire for peace.”

Asked if war could be ruled out, the Foreign Minister said: ‘If you are asking me, I am not ruling out anything. But if war is imposed, we will respond to it like a brave, self-respected and self-esteemed nation.”

Meanwhile, the Indian High Commission here said it had received no word from the Pakistan government about the Indian national that intelligence agencies claimed to have arrested from Lahore in connection with a car bomb that killed a woman in the city on Wednesday.

Pakistani media said the arrested man, whose name was given out as Satish Anand Shukla, had identified himself as Munir. They reported that intelligence agencies claimed he was a resident of Kolkota and had earlier worked at the Indian High Commission in London.

Geo Television said he had been arrested with two others, but there is no official confirmation of any arrests. According to media reports, the man was said to be carrying three fake Pakistani identity cards and “explosives” on his person. He is said to have told Pakistani authorities that he had three accomplices in Pakistan and they had planned to carry out attacks against the country’s Christian community on Christmas-eve.

Apple launches new range of iPods

APPLE HAS launched a new range of iPods in India to celebrate the on-going festive season. The new collection of Apple varies from 1GB iPod Shuffle to 32GB iPod Touch. While 1GB iPod would cost Rs 2,300, the 32GB iPod Touch would cost Rs 21,100.

Those, who love colourful models will now have a wide arena to choose their iPod Nano from, as it will be available in eight different colours, including silver, purple, blue, green, orange, yellow, pink and black. It also features a curved aluminum enclosure. The 8GB or 16GB flash drive of the device can hold up to 2,000 or 4,000 songs in 128-Kbps AAC format.

The new Apple wonder will offer music playback time up to 24 hours in its full-charge mode.
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The video playback time is up to four hours. Smaller in size, the second generation iPod Touch features a thin contoured metal design, a 3.5-inch widescreen glass display, 802.11 b/g wi-fi wireless networking, integrated volume control buttons, built-in speaker and accelerometer, etc. It also has some advanced sensors.

As it has 8GB, 16GB or 32GB flash drive, it can easily hold up to 1,750, 3,500 or 7,000 songs, respectively, in 128-Kbps AAC format. It can even hold up to 10 hours, 20 hours or 40 hours of video when it is fully charged.

The Touch offers its users a music playback time of up to 36 hours and a video playback of up to six. The 120GB iPod Classic will give 36 hours of audio playback time and has a 2.5-inch colour display. It has the ability to store up to 30,000 songs, 150 hours of video and 25,000 photos.

Centre to rein in mobile operators

NEW DELHI: To check misuse of mobile phones by terrorists and other anti-national elements, the Centre has decided to rein in mobile operators not taking the verification process of SIM (subscriber identity module) cards seriously and indulging in unhealthy competition to boost sales.

After reports that the terrorists involved in the Mumbai terror attacks had procured as many as five SIM cards and earlier incidents also indicating misuse of mobile phones by terrorists, Communications and Information Technology Minister A. Raja has decided to call a high-level meeting of the Department of Telecommunications officials to review the entire procedure involved in the verification process and sale of handsets without a valid code.

According to a senior DoT official, Mr. Raja has decided to impose heavy penalty on defaulting mobile companies. As mobile phones are handy tools for terrorists, the strategy is to prevent misuse of this communication device.

Pointing to the unhealthy competition among operators to grab the maximum share of subscribers in the world’s fastest growing mobile market, the official said the sale of SIM cards needed to be streamlined. These chips were now readily available even at tea stalls, paan shops and grocery stores.

The availability of pre-activated SIM cards a person could use even before his identity was verified was against government norms and compromises national security. DoT has failed to penalise defaulting operators and not collected any fine (Rs.1,000 for each unverified SIM card).

Another important issue is that of the sale of cheap handsets, particularly Chinese, without having a unique identity number (International Mobile Equipment Identity – IMEI), a 14-digit code that helps in tracking a device.

The meeting will discuss the ban of such handsets. As per industry estimates, over 1.5-crore handsets in India do not have valid IMEI numbers.

A recent DoT survey revealed that identification details of 15 to 20 per cent subscribers were not verifiable. So effectively, out of the total mobile subscriber base of around 35-crore (India is the second largest mobile market), identification details of almost seven crore subscribers could not be verified or were fake.

All leading operators – Bharti Airtel, Vodafone Essar, Idea Cellular, Reliance Communications, Tata Teleservices, the state-owned BSNL and MTNL – fared poorly in the verification process. Despite this the government failed to fine them, depriving the national exchequer of crores of rupees.

Computer sales record marginal growth at 1.7 per cent : IDC Survey

New delhi, (PTI): Economic downturn seems to have impacted India's personal computer shipments too, which reached just 2.26 million units in the third quarter (July-Spetmeber), a marginal growth of 1.7 per cent over the same period a year ago.

Industry tracking firm IDC today said the desktop PC shipments fell 8.9 per cent (1,563 units against 1,717 in the Q3 of last fiscal), while notebook PC shipments grew 37.8 per cent (705 units against 512 in Q3 of last fiscal) during the period over the same quarter a year ago.

Though it may be too early to conclude that this is a sign of market consolidation, IDC believes it is a visible indicator of faster movement of 'branded' desktop PCs as compared to white box shipments, IDC said.

In the overall PC (Notebooks and Desktops combined) market, Hewlett-Packard had the highest market share of 19.7 per cent in the third quarter followed by HCL with 9.8 per cent and Dell at third spot with 9.6 per cent share.

While, in the desktop PC shipments too HP continued to lead the market in the third quarter, followed by HCL and Acer in second and third spots respectively.

HP, Dell and Acer were the top three players in notebook PC shipments in third quarter of 2008.

According to Sumanta Mukherjee, Lead Analyst, PC Research, IDC India, "The contribution of the 'Top 5' PC vendors to India Client PC shipments grew from 47.2 per cent in the third quarter of 2008."

World Bank: Satyam statement stands

BANGALORE: Even as Satyam Computer Services asked the World Bank to withdraw "inappropriate" statements about the company and to issue an apolog
y for harm done to the company, the World Bank has reportedly clarified that it stood by its statement issued earlier this week.

"The Bank stands by the statement issued on its India website on 23rd December," Reuters quoted Carl Hanlon, a World Bank spokesman in Washington, as saying.

The World Bank’s India spokesperson Sudip Mazumder also told a Daily that the bank stands by its statement issued on its Indian website.

The World Bank said Satyam had been declared ineligible for direct contracts with the bank for eight years, effective from last September.

"Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charged for its subcontractors," the statement read.

However, it said there is no evidence that Satyam was involved in malicious attacks on the Bank's information systems.

India ups diplomatic efforts, asks China to pressurise Pak

Exactly one month after the 26/11 Mumbai terror attacks, India has stepped up its diplomatic efforts to mount pressure on Pakistan to take action against terrorists on its soil.

Government sources have told NDTV that External Affairs Minister Pranab Mukherjee has had a 30 minute long talk with his Chinese counterpart Yang Jeichi and asked China to step up pressure on Pakistan to dismantle the terror infrastructure in the country. He reportedly told China that Islamabad's war rhetoric should not divert the world's attention.

New Delhi is also engaging with Pakistan's allies in the Gulf, like Saudi Arabia. Earlier on Friday, Saudi foreign minister Prince Saud Al Faisal arrived in Delhi for talks with Pranab Mukherji. After the meeting, Prince Faisal said that the global terror had to be dealt with by jointly and without delay. "Terrorists want to create conflict between countries. We are urging the UN to create a special body to fight terror."

Pranab Mukherjee added that the Saudi minister conveyed his condolences to India on behalf of the people of Saudi Arabia. "We agreed that global terror has to be dealt with jointly and without delay," he said.

Saudi Arabia has tremendous leverage with Pakistan because of the amount of funding it sends, including subsidised oil.

Official sources say the meeting was scheduled earlier, but it is believed the Saudi minister sought this meeting after the Mumbai attacks, to see how they can help ease tensions between India and Pakistan in the aftermath of the Mumbai attacks.

The United States is also a key component of the pressure-building exercise. Pakistan's constant denial that the 26/11 terrorists were its nationals is not being bought by Washington. US Assistant Secretary of State for South and Central Asia Affairs Richard Boucher in an interview with a radio network has said:

"Let's find the people responsible, let's eliminated the groups who were responsible and let's make sure we do everything we can to prevent India from suffering this kind of attack again. I think we also need to look for the possibility where India and Pakistan can jointly co-operate to get rid of these terrorists and keep them from operating in these regions."

Government issues notices on illegal mobile handsets news

Addressing security concerns, the centre has notified the customs department to only allow imports of mobile handsets after the declaration of the 'international mobile equipment identity' (IMEI) numbers of each handset.

Separately has the department of telecommunications has also directed all the cellular mobile service providers to make the provision of authentications on mobile handsets with IMEI number for GSM networks and the 'electronic serial number' (ESN) for CDMA networks.

Following the recent terrorist strikes in Mumbai, minister of state for communications and information technology Jyotiraditya Scindia told the Lok Sabha this week that henceforth all mobile handsets available in the country wouldhave to carry the IEMI number, which can be identified on the operator's network whenever a call is made from that particular handset.

Some media reports suggest that there are over 25 million handsets originating from China and many of them do not carry the mandatory IEMI numbers.

The IMEI is a unique 15-digit code that identifies individual mobiles and is used in identifying stolen handsets from making unauthorised calls by legally blocking that particular IEMI code.

In many countries an IEMI code is mandatory for all purchases of mobile handsets, but the Indian government has dithered over making it mandatory for only IMEI-coded handsets into the country, despite the spate of terrorist strikes. Security agencies say terorists have been using cheap throwaway Chinese-made handsets that do not have an IEMI number, making the call to the originator untraceable for law enforcement agencies.

DoT said in a letter to operators on 6 October, "In the interest of national security, all cellular mobile service providers in unified access service licences (UASL) are hereby directed to make provisions for EIR so that calls without IMEI or with IMEI consisting of all zeroes are not processed, or rejected."

"If switches do not have such a facility, the necessary hardware and software should be put in place within three months of the issue date of this letter and compliance reported," it added.

The network operators have asked the government for time as they would have to make additional investments in their hardware as well as time to install software since the EIR equipment has to be imported.

They have also said that many genuine customers had to be enlightened that software costing a meagre Rs100 can be downloaded into the handset for an IEMI number to be added to the handset.

The Chinese make of handsets are popular with many people due to thei low cost as most of them are made in the factories near the Pearl Delta river where no R&D has gone into the making of these handsets as well as extremely low cost chips are used and are rolled out by the millions to be sold to third world countries.

Many official vendors in India like Nokia, Sony, Motorola and others have often asked the Indian government to regulate the Chinese imports of low-quality handsets in the past, that affect their own sales

Satyam shares pull back on takeover talk

MUMBAI: Satyam Computer shares plunged as much as 18.3 per cent to a five-year low of Rs 114.65 after it was barred from business with the World Bank for eight years, dealing another setback for the No 4 Indian outsourcer following a botched move into the construction industry. However by close, the stock, which had fallen 13.6 per cent on Tuesday, clawed back to limit losses to 3.9 per cent at Rs 134.95 as some investors termed the loss “excessive” after the stock fell nearly 50 per cent in just six trading sessions.

Speculation was also rife that the company could soon come under a takeover move as the stock valuation is now considered very cheap. “The promoter stake is low at around 8-9 per cent. It’s easy for any acquirer with deep pockets to mount a takeover of the IT company. Given its weak reputation, I don’t think other shareholders will object,” said BSE dealer Pawan Dharnidharka.

Mutual funds, insurance companies and FIIs together hold around 61.5 per cent stake in the company. As per the current Sebi guidelines, an acquirer will have to purchase 15 per cent before making an open offer for 20 per cent from shareholders. Who would be interested in Satyam? “It can be a foreign company also,” said a dealer.

Satyam has fallen 41 per cent in the last one week while Maytas Infra has crashed over 60 per cent to Rs 181.25 in a week. Market capitalisation of Satyam has fallen Rs 6,000 crore and Maytas Infra by Rs 1,800 crore, leading to a total loss of Rs 7,800 crore for their shareholders.

There was no Christmas cheer on Dalal Street on Wednesday. Stocks skidded for a third day, falling 1.2 per cent on Wednesday to their lowest close in more than two weeks, as investors braced for poor quarterly earnings due next month. The main 30-share BSE Sensex shed 118.03 points to 9,568.72, its lowest close since December 8. The market, which is closed on Thursday for Christmas, has lost 5.3 per cent this week after rising 4.2 per cent last week.

Shareholders may take legal action against Satyam

MUMBAI: Shareholders of Satyam Computers can take legal action against the company even after Satyam backtracks from its plans to acquire Maytas
Properties and Maytas Infrastructures, according to legal experts.

Anoop Narayanan, partner of Majmudar & Co, feels that the Satyam shareholders ‘paid a price’ for the board decision and this provides them sufficient ground for initiating legal action.

“The unfavourable impact of the called-off deal and the criminal act (criminal breach of trust) behind that may be sufficient grounds for legal action even after the deal has been called off,” says Mr Narayanan. The Satyam stock lost more than 30% or Rs 68.45 on Wednesday, to close at Rs 158.05 on the BSE. Mr Narayanan feels a “criminal action can also be taken for breach of trust.”

Legal experts feel at least 100 shareholders, or shareholders with a combined 10% stake, can come together and file a case for breach of trust and mis-management as it is clear that the company board did not act in the best interest of the shareholders. This is in accordance with Sections 397 and 398 of the Companies Act 1956.

It is also alleged that the deal was deliberately valued in a fashion to avoid obtaining shareholders’ approval. Edelweiss Securities, in a report released on Wednesday, says that the Section 372A of the Companies Act, 1956 empowers a board to make any investment without passing a special resolution by the shareholders if the value is either 60% of the aggregate of the paid up capital and free reserves or 100% of its free reserve, whichever is more.

“Around 60% of the company’s paid-up capital and free reserves stand at $1 billion while its free reserve is $1.64 billion, which is extremely close to the transaction consideration of $1.6 billion,” notes the report.

According to another partner of a corporate legal firm, who did not wish to be named, said that it is amply clear that the deal was designed to use the company’s fund to help a section of the promoters for their personal gains. “I would not be surprised if the stock exchanges
at the behest of Sebi ask for an explanation from the promoters. In the US, promoters cannot get away easily after such acts,” he says.

Satyam's promoters lose Rs 597 cr in a day

NEW DELHI: The failed move to buy Maytas Infra through Satyam has cost the Rajus dearly. As per an analysis by ETIG, the Raju family (B Ramlinga
Raju, chairman, Satyam Computers, Rama Raju Jr, promoter of Maytas Properties and B Teja Raju, vice-chairman, Maytas Infra) lost nearly Rs 597 crore in a day due to a fall in the stock value of Maytas and Satyam on the Bombay Stock Exchange (BSE). While the Rajus lost nearly Rs 397 crore of their shareholder wealth in Satyam, they lost another Rs 200 crore due to crash in the Maytas scrip.

The Maytas stock fell by 25% to Rs 388.25 on the BSE on Wednesday compared to its previous close of Rs 485.30 on Tuesday. On the other hand, the Satyam stock fell to its 52-week low on the BSE to Rs 158.05, a fall of 30% from its previous day’s close of Rs 226.50. Satyam chairman Ramalinga Raju had announced the deal after closing of the markets on Tuesday.

The ETIG analysis is based on the direct shareholding of the Raju family in Maytas and Satyam, as on September 30, 2008, which incidentally remains the same as of today. Promoters’ holding in Maytas Infra stands at 36.6% while it’s pegged at 8.6% in Satyam.

Interestingly, besides the 36.6% promoter holding in Maytas, some shareholders who appear to be related to the Raju family hold another 17% but do not figure among the promoters.

They include B Rama Raju, son of Satyam chief B Ramalinga Raju, who figures among both promoters and public shareholders. He holds 8.74% as part of public shareholding, besides being part of promoters with a shareholding of 2.52% in Maytas Infra.

If we include the holding of these three large shareholders, B Rama Raju, Radha Raju Byraju and B Suryanarayana Raju, with the promoters stake, the Rajus have lost another Rs 100 crore as part of their shareholding in Maytas Infra. This takes their total erosion in wealth to around Rs 700 crore($140 million).

Meanwhile, on Tuesday, Satyam ADR closed at $5.7, registering a fall of 55% on Nasdaq, post announcement of the buyout. The ADR has, however, recovered to $8.05, post the company calling off the deal.

Interestingly, the Maytas Infrastructure stock has been trading in the range of Rs 355–518, in the past six months. On the other hand, other infrastructure stocks like IVRCL Infra, Gammon, Nagarjuna, HCC, have crashed up to almost 80% in the same period.

Govt orders probe into Satyam's Maytas deal

NEW DELHI: The government is understood to have ordered a probe into Satyam Computers' controversial decision to buy two group-promoted companies
Satyam

B Ramalinga Raju
All about Satyam-Maytas deal |
Deal dropped due to investors reaction
and then reversing the deal within a few hours under pressure from investors. ( Watch )

According to official sources, the government will examine if the company had any malafide intention to influence the stock market.

Satyam Computers had on Tuesday announced that it will acquire two group firms - Maytas properties and Maytas Infra for $1.6 billion (about Rs 8,000 cr) as part of its diversification strategy, a move that sparked a row over alleged violation of corporate governance laws.

However, the company had to reverse the decision within a few hours after its scrip nosedived more than 55 per cent on the US bourses.

Sources said the government will examine whether the company indulged in any short selling and whether it wanted to cover its position after the stock prices plummeted.

The Ministry of Corporate Affairs had said it will look into whether the company violated any corporate governance laws while entering into such a deal involving share holders' money.

Satyam calms nerves, plans buyback

HYDERABAD/MUMBAI: Satyam Computer on Thursday attempted to reassure angry investors and jittery employees. While the markets were told that the company board would consider a share buyback, the staff were reassured of its commitment to the IT services business.

The move comes a day after it called off a controversial $1.6-billion deal to buy two firms, Maytas Properties and Maytas Infrastructure, run by the sons of Satyam founder-chairman B Ramalinga Raju. The proposal, if cleared by the Satyam board on December 29, could lead to a 1% hike in the promoter’s stake (currently at 8.5%), according to Rashesh Shah, chairman, Edelweiss Capital.

A company can buy back a maximum of 10% of its paid-up capital at one go, with the board’s approval. “Satyam is expected to use the permissible limit to the full extent,” Mr Shah said.

Meanwhile, the government is understood to have ordered a probe into Satyam Computers’ decision to buy the two companies and then reverse the deal within a few hours under pressure from investors. According to sources, the government will examine if the company had any malafide intention to influence the stock market.

Satyam may be “generous” in fixing the buy-back price, said a stock market analyst. Ram Maynampati, whole-time director of Satyam, however, said the probability of a hostile takeover of the company is “almost nil.” On Thursday, Mr Raju also sought to reassure 50,000 employees of the country’s fourth-largest software exporter of his commitment to the IT services business.

Satyam’s commitment to its core business came into question after it announced what it called a “diversification and de-risking strategy”, by acquiring a real estate company and an infrastructure provider.

In a letter addressed to employees, Mr Raju said, “I want to reassure you that Satyam remains fully committed to the IT services business and continues to reinforce its leadership position in this space.” He emphasised to the staff that the scuppered bid to buy companies run by his sons did not constitute a breach of corporate ethics.

“Please be assured that our intent to acquire Maytas was well within the framework, and not compromised in any way. We strongly believed that this move would yield significant value for our shareholders and contributed to the strength of the company,” the letter said.

“I share your disappointment that the recent developments have caused to us. We have always placed significant value on the interests of our associates, customers and investors. We are in conversation with many of our key stake-
holders individually to correct the perceptions.”

Upaid seeks Satyam officials' testimony

HYDERABAD: Upaid Systems, a UK-based mobile payment services provider, on Thursday said it is asking a US court to seek a testimony from top
Satyam officials in connection with the Indian company’s abortive attempt to buy two firms linked to its founder.
Upaid said it is making the move because of the possibility of Satyam depleting its assets by acquiring the firms for $1.6 billion ahead of a judgment in a legal battle it is fighting against the Indian IT firm.

Satyam declined to comment, saying the matter was sub-judice.

Satyam board of directors' role comes under spotlight

HYDERABAD: Satyam’s move to acquire Maytas has now been stymied thanks to shareholder activism, but has put the spotlight on the board of
directors of the $2 billion plus company. The board approved the deal “unanimously’ ’ against which the shareholders virtually revolted and Satyam chairman B Ramalinga Raju had touted this clearance as the basis to go ahead with the deal.

According to TOI’s investigations , seven of the nine members of Satyam’s board were physically present at the meeting, while two others were on conference call. All the independent directors said “yes” to the deal and only two family directors abstained because they were “interested parties’’ . It is understood that the company’s board had been deliberating on this issue for the last three months.

Members of the company’s audit committee were also present at the latest board meeting. India’s fourth largest IT company’s board is star-studded . Besides Ramalinga Raju, his brother and co-founder Rama Raju, the board has the inventor of Pentium Vinod Dham, former union cabinet secretary T R Prasad, Dean of Indian School of Business Rammohan Rao and former director of IIT Delhi U S Raju among others as members.

Krishna Palepu who teaches at the Harvard Business School, retired professor from many US universities M Srinivasan along with fulltime executive Ram Mynampati also sit on the board. “Forget experts. Even laymen like me realise that there was something not correct with the deal. How is it that the directors did not question the deal?’’ asked an angry corporate executive K Suresh.

Award for corporate governance :

Satyam had in September this year received ‘Golden Peacock Global Award for Excellence in Corporate Governance’ from the World Council for Corporate Governance . A Satyam release posted on its website said: “The honour is especially relevant given that corporate governance best practices are considered key benchmarks by stakeholders who evaluate corporations . In fact, their importance is magnified in difficult economic environments.’’

Satyam shares pullback on takeover talk

BANGALORE: Shares in Satyam Computer Services pulled back from steep losses on Wednesday on market talk the outsourcer may see a takeover bid
after its valuation plummeted on corporate governance concerns.

Satyam's shares have plunged 40 percent since the firm said last week it would pay $1.6 billion for two infrastructure firms in which its management held stakes and after it emerged it had been barred from business with the World Bank for eight years.

The company dropped the plan to buy the two firms within hours after investors reacted angrily.

Shares in Satyam, India's No. 4 software exporter, ended down nearly 4 percent at 134.95 rupees in a Mumbai market that fell 1.2 percent. The stock shed as much as 18 percent during trade to its lowest in five years.

Asked what led to the pullback, R.K. Gupta, managing director of Taurus Mutual Fund which holds Satyam shares, said there were rumours in the market Satyam may see a takeover bid.

"The promoter stake is very low and therefore it can become an easy takeover target," Gupta said.

A spokeswoman for Satyam said as a policy the company did not comment on speculation. Satyam director Ram Maynampati said in a newspaper last week the company could not rule out a hostile bid.

Satyam's market value has plunged 40 percent to 91 billion rupees ($2 billion) since it announced plans to buy the sister firms, as a slew of brokerages downgraded the stock and worries grew about its business prospects.

The firm's promoters, headed by its chairman B. Ramalinga Raju, held just 8.74 percent in Satyam as on March 31, 2008, while institutional investors owned 61 percent of the company, according to information available on Satyam's website.

"At this level, Satyam is an interesting candidate for takeover because fundamentally it's a strong company," said Harit Shah, sector analyst with Angel Broking. "Valuations are cheap but the management needs to be changed."

BUSINESS PROSPECTS

Analysts say while the World Bank's decision was not linked to Satyam's botched attempt to buy the sister firms, the information had come at a time when investors were worrying about its prospects, already being hit by the economic slowdown.

"Going forward acquiring new clients is going to be more difficult for Satyam," said Kevin Trindade, a sector analyst with brokerage KR Choksey Shares and Securities, which has a hold rating on the counter.

"Satyam will face pricing decline given the dent in corporate governance," he said.

The World Bank said in a statement on Tuesday its decision to bar New York-listed Satyam took effect from September.

"Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charged for its subcontractors," it said.

Satyam specialises in business software and offers back-office services, but the size of its business with the World Bank was not available, and a company spokeswoman has said the Hyderabad-based firm does not comment on individual clients.

The company, whose clients include General Electric, Nestle and Qantas Airways, cut its sales forecast in October.

It said revenue would grow between 19 percent and 21 percent in U.S. dollars in the year to March 2009, slower than the 24 to 26 percent growth seen in July.

The firm may try to placate shareholders by buying back shares, a move its board will consider next week, but analysts said it would have to do more to restore investor confidence.

"I don't think any buyback or dividend, even if they are substantial, are going to change the mood of investors now," said an analyst with a Mumbai brokerage, who didn't want to be named as he was not authorised to speak to the media.

"What is required now is an independent board of directors and professional management. The promoters can stay there as pure shareholders," he said.

Satyam plunges 15% as WB declares it ineligible for 8 yrs

HYDERABAD: The World Bank on Wednesday said Satyam Computer Services was debarred from getting direct contracts from it under its corporate
procurement programme for eight years from September this year.

But it clarified there was no evidence of Satyam being involved in malacious attacks on the bank's information system. The company was declared ineliglible for contracts for providing improper benefits to bank staff and for failing to maintain documentation to support fees charged for its subcontractors, the bank said in a statement on Wednesday.

Satyam shares slid 15% to Rs 119 per share during the course of trading on Wednesday, the lowest since September 2003.

The World's Bank's disclosure has become an embarrassment for Satyam that is embroiled in an unrelated controversy after its aborted bid to buy two firms linked to its promoter B Ramalinga Raju.

The country's fourth largest software exporter faced a major shareholder rebellion last week after it announced plans to buy two firms linked to the promoter for $ 1.6 billion. The decision was endorsed by the Board. However, within a few hours Satyam called off the deal to buy Maytas Infra and Maytas Properties. It has, however, been tight-lipped on key questions on who did the valuation of the real estate firm.

Satyam-Maytas deal fiasco puts focus on independent directors

NEW DELHI: The Satyam-Maytas fiasco has drawn the attention of Government towards the role of independent directors, especially when the new
Companies Bill provides for 33 per cent of such directors in boards of companies.

"In the longer run, it needs to be seen what is the problem with the role taken by independent directors," official sources said.

The Satyam deal certainly raises the question whether the independent directors of the company failed to carry their duties, they added.

India's fourth largest software company Satyam Computer Services last week decided to buy two firms -- Maytas Properties and Maytas Infra -- promoted by Satyam chief R Raju's two sons for USD 1.6 billion (about Rs 8,000 crore), but called off the deal within few hours following investors' wrath.

The IT major's decision to buy out the two firms also raised the larger issue of corporate governance.

Satyam's Board, including independent directors, had unanimously given a go-ahead to the deal.

The listed companies are already bound by SEBI's Listing Agreement, which calls for certain proportion of independent directors in the board for keeping a check on the management of companies and work as an oversight mechanism.

Apart from value addition they are also entrusted with the task of representing the financial interests of others investors.

Satyam's buyback plan is a ploy to take away funds: Upaid

MUMBAI: Ramalinga Raju’s problems just don’t seem to end. After the unprecedented furore over Satyam Computers’ aborted plan to buy into Maytas
Satyam

B Ramalinga Raju
All about Satyam-Maytas deal |
Deal dropped due to investors reaction
Infrastructure and Maytas Properties — controlled by the Raju family — for a whopping $1.6 billion, the UK-based Upaid Systems has alleged that Satyam’s buyback proposal is yet another ploy to divert resources out of the company.

Upaid, a UK-based mobile services payment company with 40 employees and 1,000 patents, has already filed a motion in the Texas district court, seeking depositions of top Satyam officials in connection with the Maytas deal
. Upaid and Satyam are locked in a two-pronged legal battle. One, a forgery case filed by Upaid against the Satyam management seeking damages of over $1 billion; second, a disparagement case levelled by Satyam against the little-known British company for allegedly besmirching its reputation.

“The manoeuvrings by the Satyam management this week has been outrageous. I would say that any action by the Satyam management which takes cash out of the company is a cause of concern for us,” Simon Joyce, CEO and founder, Upaid, told ET.

“As per Satyam policy, we will not comment since the matter is sub-judice,” said a Satyam spokesperson. The fresh set of allegations clearly weighed on investor sentiments as the stock fell 4%, giving up half the gains that it made after the share buyback proposal was announced on Thursday.

Analysts feel that Upaid’s motion is clearly aimed at weakening Satyam’s case as disgorgement, now that their conduct — especially relating to the related-party transaction in the Maytas deal where bulk of Satyam’s reserves would have been transferred to promoters — has come under severe criticism from investors and industry leaders alike.

Some are also questioning why Satyam has not provided for any contingent liability, although the charges in the fraud case — in case it goes against them — could add up to a huge liability for the country’s fourth-largest IT company. The next hearing for the case is scheduled in June 2009.

“I am astonished that no such provision has been made in this regard,” Mr Joyce said. Some legal experts, however, say that it’s up to the Satyam auditors — PricewaterhouseCoopers in this case — to take a call on the need for a provision for contingent liability on the forgery case, depending on when the liability could arise.

The forgery case, it may be mentioned here, dates back to early 2000, when Satyam was working on a contract job for Upaid. Upaid says that it ran into problems with Qualcomm and Verizon and had to settle the case with them under grossly unfavourable terms, what it describes as forgery by Satyam officials. “We lost out on a huge opportunity, which is in excess of a billion dollars,” Mr Joyce claims.

However, what’s interesting is that Satyam Computers was a shareholder in Upaid, holding around 25% some eight years ago. Although the parting was “cordial”, the two erstwhile partners are surely in for some ‘not so cordial’ times ahead.

Best and Worst

As the tumultuous 2008 comes to an end, here is a snapshot of the top 5 and bottom 5 performing stocks for the last 12 months.

Hindustan Unilever Ltd. 1-year returns (%): 20

Hero Honda Motors Ltd. 1-year returns (%): 16

Castrol India Ltd. 1-year returns (%): 12

GlaxoSmithKline Pharmaceuticals Ltd. 1-year returns (%): 9

Godrej Consumer Products Ltd. 1-year returns (%): 6

Asian Electronics Ltd. 1-year returns (%): -956

Prajay Engineers Syndicate Ltd. 1-year returns (%): -94

Orbit Corporation Ltd 1-year returns (%): -93

Lok Housing & Construction Ltd 1-year returns (%): -92

Ashapura Minechem Ltd 1-year returns (%): -91

Funds dial IT czars for Satyam deal

NEW DELHI/BANGALORE: Some large investors in Satyam Computer Services are understood to have approached rival firms and buyout funds to sell
Satyam

B Ramalinga Raju
All about Satyam-Maytas deal |
Deal dropped due to investors reaction
their stakes and even push for its takeover, putting more pressure on the management of India’s fourth-biggest software exporter that has been hauled over the coals after the two botched Maytas acquisitions.

Institutional investors led by Aberdeen Asset Management, Fidelity and ICICI Prudential hold a 61% stake in Satyam, several times the 8.3% stake held by the family of the company’s founder and chairman, Ramalinga Raju. This makes the company vulnerable to a hostile takeover, especially since several funds are upset at Satyam’s founders for trying to use the company’s cash pile to buy the two Maytas firms run by Mr Raju’s family members.

But given Satyam’s reputation problems and the challenging global environment, getting a buyer may not be easy, analysts say. However, at least two people familiar with the developments told ET that bankers acting on behalf of some funds had approached Satyam’s rivals such as Wipro, Infosys, large overseas IT companies and financial players in the past few days.

Infosys and Wipro declined to comment as they are in a “silent period” before quarterly results next month, but informed sources indicated that these companies did not show interest in pursuing a deal.

Private equity investors are rumoured as another set of potential buyers, although analysts say Satyam is more likely to attract interest from IT firms as a financial buyer would need to have a top management team in place before moving in to do a deal.

Texas Pacific Group, which counts former Wipro vice-chairman Vivek Paul among its top executives, has in the past explored a Satyam buyout, but persons close to the US fund now say it is not interested in pursuing a deal.

“While this might seem to be a difficult transaction on the face of it, things can be executed, especially with value of promoters’ holding being anywhere between $150-160 million,” said an official at one fund that is looking to sell its stake in Satyam, requesting anonymity.

Satyam’s shares have fallen 40% since it announced and later abandoned its plans to acquire the two Maytas companies - Maytas Infrastructure and Maytas Properties. The company has seen some Rs 6,100 crore lopped off its market value since the deals were unveiled a week ago.

Besides facing allegations of poor corporate governance, Satyam's reputation suffered a further blow after news emerged that the World Bank had blacklisted the company for eight years over charges of bribery. Satyam, which serves customers such as GE and General Motors, has been declared ineligible by the World Bank “for contracts for providing improper benefits to (World) Bank staff and for failing to maintain documentation to support fees charged for its subcontractors”.

A top executive at a leading Indian technology company told ET that while Satyam might appear to be a good acquisition target, especially at its prevailing stock price, “the recent questions about corporate governance and cancellation of the World Bank contract might discourage other rivals to make an acquisition because of the reputation risks”.

Satyam promoter loses Rs 2,373 crore in 8 months

HYDERABAD: The price of the beleaguered Satyam Computer share plunged by 19% on Wednesday, hitting a 52-week low of Rs 114.65, but narrowed down
the losses by closing higher at Rs 134.95 on the Bombay Stock Exchange. This was in the wake of the news on Tuesday that the World Bank had barred the company from all its contracts for eight years.

At Wednesday's closing price, the stock has lost 75% of its value from its May 2008 peak of Rs 544. For promoter Ramalinga Raju and his family members, who hold 8.61% (5,80,05,946 shares) in the company, this means a loss of a whopping Rs 2,373 crore in market capitalisation in just eight months.

On Wednesday, Raju and his family members were only worth Rs 783 crore by their shares__a far cry from the Rs 3,155.52 crore in May.

Satyam shares quoted at Rs 236.60 on December 16, when the company made its abortive attempt to acquire Maytas Infra and Maytas Properties. On December 17, the share value dipped to Rs 158.05. The weakness continued, and the share lost another 15 per cent touched a 52-week low on Wednesday.

Many analysts feel that the continued presence of Raju may have a negative impact on the company, as investors will lose confidence in a promoter who has himself lost so much wealth. These analysts are, however, aware that in India it is rare for a promoter group to get pushed out of the management of its own company. ``Like the World Bank, other prospective clients might also walk away from Satyam, so the company may not only lose future contracts, but also have a problem with renewals,'' says Ashutosh Gupta, vice-president, investment research, Evalueserve.

Market analysts say Ramalinga Raju and his team will have to work extremely hard to rebuild the confidence they have lost. ``Destruction of wealth is a part of collateral damage of any company, but the events of the past two weeks could certainly have been avoided. Trusting those same hands who led the company to its current low will be a difficult task,'' said Gaurav Dua, head of research at Sharekhan.

What war with India could mean for Pakistan

Reuters

War between nuclear-armed India and Pakistan over last month's militant attacks on Mumbai is seen as highly unlikely.

Nevertheless, with tension high and fiery rhetoric coming from various quarters on both sides, conflict between the neighbours who have fought three wars since 1947 cannot be ruled out.

Here is a look at some possible senarios for Pakistan in the event of war:

War would bring a wave of patriotism and national unity, analysts say. However, the authority of the civilian government that came to power this year after nine years of military rule, and had been trying to improve ties with India, would be undermined as the military would take charge of key decision-making. - At the end of a war, assuming the country has not been flattened by Indian nuclear strikes, the government would be under huge pressure to deal with the economic consequences.

Efforts to establish stable and sustainable civilian rule could be a set back years.

Afghans could revive calls for a greater "Pashtunistan" (Afghanistan has never recognised the border with Pakistan, imposed by British colonialists in the 19th century, which divided ethnic Pashtuns). Such developments in Baluchistan and the Pashtun-dominated northwest would revive deep-seated Pakistani fears of the break-up of their country.

The Pakistani military would effectively give up its part in the US-led war on terrorism, analysts say, as it pulls troops off the western border with Afghanistan, where they have been battling militants, and deploys them on the eastern border with India. - Pakistani Taliban militants have already said they would rally to help the Pakistani military in the event of war against India.

Pakistani efforts to rein in militant groups would likely be reversed and the groups would be given a green light, or official support, to raise funds, recruit fighters and infiltrate India.

Public sympathy and support for militant groups would soar as they would be seen as national defenders against the "real enemy", India. - That would be the death knell for government attempts to convince a sceptical public that militancy has to be rooted out, and efforts to tackle it are for the good of the country and not just doing America's bidding.

The economy was rescued from the brink by a $7.6 billion IMF loan agreed last month. The benchmarks and reforms involved in the IMF package, as well as lower fuel and food prices, have offered a glimmer of hope of recovery in 2009/10 but war would dash that hope and the slowdown would be prolonged.

Several economic analysts said war was highly unlikely but even greater fear of war would lead to a flight of capital as both Pakistani and foreign investors get their money out of the country. There would be no hope of attracting much-needed foreign investment which is required to bridge a current account deficit. The Indian navy would most likely try to block Pakistan's main port at Karachi to choke off imports including fuel, though that would also disrupt supplies bound for U.S. forces in Afghanistan.

Analysts said they doubted authorities would freeze foreign currency accounts, as they did in 1998 after Pakistan conducted nuclear tests, in the absence of full-scale war because the country's reserve position as well as external account situation was improving with the IMF programme. However, that could not be ruled out if war broke out.

The top 10 Asia Pacific property markets for 2009

Real estate sector is facing a worldwide slump during the current financial turmoil, with the properties in Asia Pacific being no exception. However, despite a dramatic change in the investing landscape, Asian economies have shown resilience. “The trend will see more traditional players shop for quality assets in major locations and investors will also be rebalancing portfolios to take advantage of better economic prospects in Asia,” according to the Emerging Trends in Real Estate Asia Pacific 2009 report, released by the Urban Land Institute and PricewaterhouseCoopers recently.

For 2009, therefore, the new mantra for real estate investing is “focus, focus, focus,” the report says, advising investors to be picky about markets and partners. The report also recommends not to stray from one’s area of expertise and geography.

But in terms of investments, which are the top 10 Asia Pacific property markets for 2009? Here goes the list:

Tokyo

In terms of investments, Tokyo is the leading city in the region. However, the local economy has slowed and exports are down. The city ranks first for investment and ninth for development prospects. However, Tokyo has the best risk rating throughout the Asia Pacific region.

Singapore

Singapore’s central gateway earned it the number two spot for investment, but seventh overall for development. The city has to reconcile itself to slower growth and less demand, but has the second best risk rating after Tokyo.

Hong Kong

Hong Kong moved up from fifth place for investment and sixth for development prospects. Demand is projected to slow from the rally of the past five years.

Bangalore

Cyber city Bangalore is a new kid on the block, which catapults from 12th to fourth place for investment and number one for development prospects.

Shanghai

Shanghai drops to fifth place for investment and eighth for development prospects.

Seoul

Seoul ranks sixth for investment and tenth for development prospects. Industrial growth will play a large role in keeping the real estate market healthy.

Mumbai

Mumbai continues to experience unprecedented growth and spirals into seventh place for investment and third for development prospects. But, the city is also ranked the third riskiest for investment.

Taipei

Taipei leaps from 16th into eighth position for investment and fifth-best for development opportunities. A strong office market with decreasing vacancies and increasing rents. All property sectors ranked as hold.

New Delhi

India’s capital city New Delhi rises to ninth place for investment and fourth for development. Current property investments earn a hold, but buy opportunities can be found in the hotel sector.

Kuala Lumpur

Kuala Lumpur slides into tenth position for investment prospects with tourism as its main economic driver.

Boom to gloom: Indian economy saw it all in 2008

No other year in recent times saw such wild mood swings in the Indian economy than 2008, which started on a strong note but ended on a weak
Cash
2008 turned financial heroes to zeroes
2008: Year of financial crisis

Countries in recession
wicket in the wake of a general global slowdown and severe recession in some of the richest countries like the US and Japan. From economic expansion to performance of equity markets, and from export growth to industrial production, all indicators had the same story to tell: The year had started with a strong economic performance, but the momentum was lost as the months passed, as India faced the ripple effects of the gloom in the global economy
.

The indicator that captured the trend best was the 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), often seen as a barometer not only for investor mood but also the overall performance of the Indian economy and its corporate sector.

On Jan 10 this year, the Sensex was ruling at an all-time intra-day high of 21,206.77 points. But as the year is drawing to a close, it is languishing at around the 9,000-point mark - a fall of over 50 percent in the year. Last year, the index had gained nearly 50 percent.

The Sensex apart, exports fell in October for the first time in seven years. Indirect tax mop up was down eight percent in October. Industrial production, which was among the main drivers of the economy, fell 0.4 percent. The rupee fell below 50 to a dollar in November to an all-time low. And, as per the government's own admission, some 65,000 jobs were lost between August and October.

The high cost of crude oil, which jumped from under $40 per barrel a year ago to nearly $150 per barrel in August, added to the country's woes in terms of higher import bill and accentuated the losses of state-run fuel retailers, which had to bear the burden of having to sell hydrocarbon products below cost.

As a result, the United Progressive Alliance (UPA) government, led by Prime Minister Manmohan Singh, which at the beginning of the year said the Indian economy would continue to grow at over nine percent this fiscal, had to tone down its target sharply, hoping to achieve an overall increase of 7-7.5 percent in gross domestic product (GDP).

"Two key sectors, agriculture and industry, were unable to maintain the pace due to the global economic slowdown. This will have a serious effect on our overall growth," said Dalip Kumar, head of projects at the National Council of Applied Economics Research, an economic think-tank.

The only notable saving grace was on the price front, where the annual rate of inflation fell from a 16-year high of 12.63 percent for the week ended Aug 9 to 6.84 percent for the week ended Dec 6 - but not without taking a toll on industrial growth on account of the tight monetary policy of the central bank
during the months before.

"Inflation is not a concern any more. If the Indian government does not think in terms of long- term measures to contain the slowdown, the medium-term growth projection of 8-9 percent will be difficult to achieve," said Biswa N. Bhattacharyay, Tokyo-based special adviser with the Asian Development Bank (ADB).

As India Inc. cried hoarse, saying the credit squeeze due to the policies of the central bank was affecting its day-to-day business, policymakers appeared to be in a denial mode initially, with the prime minister maintaining that India remained largely insulated from the goings-on in the world economy.

Pakistan: Bomb-rigged Truck Kills One

A bomb-rigged truck with government plates exploded in Lahore on Wednesday, killing one person in a heavily guarded neighborhood in the eastern Pakistani city where many government officials live. The target of the blast was probably a police officer who ran an operation that led to the death of a leader of Lashkar-e-Jhangvi, a militant group linked to Al Qaeda, in 2002, said Umer Virk, who is in charge of the Crime Investigation Department. The officer escaped the explosion near his home, but it killed a woman and wounded four of her relatives. The family was driving to a Christmas function. A police officer, Pervez Rathore, said the truck apparently gained access to the neighborhood because of its official plates. Lashkar-e-Jhangvi is a Sunni Muslim militant group blamed for killing scores of minority Shiites across Pakistan. Its members have also been accused of attacks against Westerners in Karachi, the killing of the American journalist Daniel Pearl in 2002 and the September truck bombing of the Marriott Hotel in Islamabad. (AP)

Pak hacker attacks E Rlys site, threatens cyber war on India

Thu, Dec 25 02:39 AM

In the first instance of cyber attack on Indian government websites, the attack on Eastern Railways site on Wednesday popped open vulnerability of government websites in the country.

While Eastern Railway took almost two and half hours to restore the site to normalcy, visitors to the site continued to be attacked by Trojan virus. ER officials could only primarily trace the roots to Toronto in Canada after repeated top-brass meetings all through the day.

As spotted by FE in the morning, the official site of the Eastern Railway-www.eastern railway.gov.in—was hacked on Wednesday. When opened, the scroll on the site— which normally consists of official announcements—had unusual notes. The first note read: "Cyber war has been declared on Indian cyberspace by Whackerz- Pakistan (24 Dec-2008)." This was followed by two other notes: "Indians hit hard by Zaid Hamid" and "We are f**ked up Indians. You are hacked."

When clicked, the scroll opened into a new window which claimed that 'Mianwalian of Whackerz" has hacked the site in response to the air violation of Pakistan. It also claimed that it will continue to hack more Indian military and government sites. The threat note also claimed that servers of Indian financial institutions will also be hacked with the help of the group's members working in computer departments of "foreign companies". Data belonging to "Indian nationals (only Hindus)" will be destroyed eventually, it added.

Another threat note asked the visitors of the website to watch the real Indian conspiracy in Mumbai attacks on the website-www.brasstacks.pk. Brasstacks claims to be "a unique Pakistani think tank devoted to the study of regional and global political events and their implications for Pakistan's security and interests." The note ended with the slogan "Long live Pakistan".

The third note, which showed the hackers' apathy towards India, Israel and USA, challenged Indians to save their 'motherland' from turning into pieces.

When contacted, ER officials seemed unaware of the entire incident and the site remained as it is for almost an hour, till 11.40am, after which ER blocked it. The website resumed to normalcy after 12, when the threat notes in the scroll as well as in the news and events section were removed.

"Our sites have cyber security certificate from US-based Thawte," said an ER official. "We have informed the service provider and will get a detailed response from them only after 24 hours," he added.

According to a cyber security expert, similar attacks can be done through SQL injection method. In case of a SQL injection attack, webpages with active content like feedback forms are used. Attackers can write malicious commands in the forms through a rich text format and get control over the database of the target site.