Govt tightens ECB norms with immediate effect

In what is being seen as a move to rein in a rising rupee, the government announced restrictions on external commercial borrowings, or ECBs. It hopes that this will reduce the flow of dollars into the country. 

 

The new norms state that a company can raise up to USD 20 million dollars through the ECB route after getting RBI's approval.

 

But ECBs over USD 20 million can only be spent overseas. This move comes after India has seen unprecedented dollar inflows through ECBs. In the period from April-July, India has received ECBs to the tune of USD 9 billion.

L&T has said that the rupee expenditure on capex will get curbed after the new ECB norms. They added that the new ECB norms are seen as impacting borrowing by 75-100 bps and they are unclear on the impact on the infrastructure sector.

Mahindra & Mahindra has said that the cost of funds may now be slightly higher than borrowing in dollars on a fully hedged basis. The cost of borrowing would depend on rating of the borrower, the company added.

 

Tata Motors said that the guidelines may result in borrowing cost for industry at large to increase to some extent. It will certainly help industry, if these guidelines are a short-term measure, it added.

Bankers have commented that the dollar may jump to Rs 40.75-41.00 tomorrow.

Software to track all your bank dealings

The finance ministry has asked banks to install software to track all bank transactions so that any suspicious dealing can be detected and reported to the Financial Intelligence Unit (FIU). Banks are talking to software companies for developing in-built alert systems to detect suspicious transactions to keep a tab on money laundering and terror financing. So, each time a customer transacts with a bank, it would be scanned and an alert will be issued if it falls within the parameters of being suspicious.

"Suspicious transactions are being identified manually but there is a need to further streamline the process to make it more efficient," a government source said. The matter is being treated with lot of urgency as in the recent past, bank dealings have given key leads to security agencies in nabbing offenders in a drug racket case and a Maharashtra bomb blast case. This would make the system more efficient and information could be given to the concerned agencies well in time for their use.

Detecting suspicious dealings is a cumbersome and time-consuming process and makes it a difficult proposition for banks as it would require dedicated manpower in every branch. At times, agencies are unable to do much because details do not reach them in time. Software alerts can be sent out immediately to FIU. Some banks have already moved quickly on this.

For example, Punjab National Bank (PNB) has roped in TCS for a data warehousing project that will take off in six months. According to PNB GM (IT) RIS Sidhu, "We have developed an in-house software to track suspicious transactions based on abnormal findings with respect to the observed history of the account." If a customer can explain the discrepancy in a transaction to the FIU, he will not be implicated, he added.

"Most new accounts are classified based on the risk perception of the bank about the account holder, but the old accounts are not classified in this way. For such accounts, the history of transactions becomes important. There are in-built alarms in the software that throw up transactions that are inconsistent with the pattern of the account. Factors such as quantum and source of funds determine a suspicious transaction. Hawala transactions, terrorist financing and unaccounted NRI remittances can be detected by the software. Know-your-customer (KYC) norms are also crucial in giving leads for such transactions."

All banks have to mandatorily submit cash transaction reports to FIU. The reports have data about cash withdrawals and deposits above Rs 10 lakh. Around 13 lakh such cash transactions have been tracked by banks in the last year.

The provisions under the Prevention of Money Laundering Act requires the entities to maintain a record of transactions: all cash transactions of a value greater than Rs 10 lakh or equivalent foreign currency, series of cash transactions that have taken place within a month (integrally connected to each other) and total value of more than Rs 10 lakh, cash transactions where forged or counterfeit currency notes have been issued as genuine and all suspicious transactions whether or not made in cash.

It may be noted that in April, RBI had notified that all scheduled commercial banks will implement better procedures and systems to track wire transfers both domestic as well as cross-border. India — which got observer status in global force against money laundering, the Financial Action Task Force, in February — is keen to become its member.

It recently became a member of the Egmont group that will allow FIU to share information with other such bodies globally. Membership of FATF requires tightening of the monitoring mechanism in the financial sector as also giving more teeth to PMLA.

Rupee shines against dollar

It had to be a good day for the rupee right from the word go, because the dollar has had an extremely weak day globally. It is weak against all majors practically against the Yen, Euro and the pound particularly. Early morning it was a no-brainer to expect the dollar to take quite a badgering and the woes of the dollar-rupee was compounded by the fairly decent performance of the Indian equity markets especially in the early morning session. And whatever the cause of the equity markets, the amount of dollars coming into the system is not funny. It is almost as though the FIIs are marching into the country like a tidal wave.

And the bigger concern for the dollar has been the manner in which Indian companies especially exporters have been selling. The forward dollar crashed so sharply over the last three weeks which was something around Rs 1.50 or Rs 1.60 about 3 weeks ago whereas yesterday it had crashed all the way to Rs 0.45.

So when you are losing Re 1 in just three weeks, people were just coming in and selling dollars at every spike. So it was really dollar selling all the way but there was this one bastion of support coming from RBI. Solid support was seen coming from PSU banks, buying dollars. Some market estimates say that RBI could have bought something like USD 1 billion today. That was the kind of solid support they were giving the dollar.

Money markets had a huge ride in early morning trades on Monday. So it was profit-taking time today. Also, as you get closer to the credit policy, which is due next Tuesday, a week from now, people become wary and want to book their gains and that's what you saw. But there can't be too sharp a fall either for the bond markets because there is so much of cash in the system and if theRBI has indeed bought USD 1 billion, it has put in Rs 4000 crore into the system. With the call giving like a 0.25% and even less, banks have to push their money somewhere. So even if T-bills give you 5% and 6% you will see them coming in and buy. You can't see bonds falling for a very long time.

Life cos on mortality tables

The much-awaited new mortality tables for the life insurance market, which have been pending for more than a year now, are likely to come out in the next six months.

These tables are almost a decade old and the industry, as a whole, has been asking for revised mortality tables to give an accurate picture of life graph on today's consumers.

LIC chief actuary GN Agarwal said, "We arrived at an agreement in today's meeting with the life insurance council and the Institute of Actuaries of India to form a governing committee. This committee will carry out the collection and procession of data, which would help in the computation of new mortality tables for the life insurance industry."

The agreement has been signed by both parties after having arrived at some consensus, he added. In recent years, there has been a move to have an industry-level body to compute life expectancy levels. This has resulted in the creation of the Mortality and Morbidity Research Institute (MMRI), an arm of the Institute of Actuaries of India.

This institute will collect data and relevant statistics from insurers. However, the data and insurers' individual experiences would be highly confidential. Every insurer can have an access only to its individual information and industry-related experiences.

"Everybody in the insurance industry welcomes this move. In fact, the confidentiality of information has comforted insurance players to share their experiences and data with the research institute," said sources.

One of the main reasons for proposing changes in mortality tables is the steady increase in longevity. As per industry estimates, the average life expectancy of Indian men has increased to 63.87 years from 59.7 in 1991 and that of women to 66.91 years from 60.9 in 1991. An increase in longevity usually prompts insurers to revise premium charges once in a few years. Prices are based on a `mortality table' which is computed based on historic data on life expectancy rates at different ages.

The research institute will carry out fresh calculation on mortality rates, life expectancy and relevant numbers for mortality tables in different consumer pockets in the country, said Life Insurance Council secretary general SV Mony. Mortality tables are used to calculate the premium of an insurance policy. For now, private insurers use LIC's mortality tables as a base and combine that with their own claim ratios for calculating the premium. One of the main reasons why insurers depend on LIC's mortality tables is that mortality calculations require some historical data. However, once the MMRI releases the revised mortality tables, insurers will use them as a base, along with their own claim ratios, to compute the premium.

Is India losing its IT edge?

High costs and high attrition could drive Indian software companies to set up shop in other countries. That's what Infosys CEO Gopalakrishnan believes.

Well, Malaysia could be one of them. The Malaysian government is gearing up to take advantage of India 's problems.

 

The information technology park in Kuala Lumpur could rival the dozens of India's IT parks. Called the Multimedia Super Corridor or MSC, this 15 kilometre wide IT park was set up by the Malaysian government a decade ago to herald its presence in the IT space.

 

And the initiative is starting to pay dividends. The IT park has attracted over 1800 domestic and multinational companies on the back of zero corporate tax, unrestricted employment of foreign workers, single window government clearance and of course, the world class infrastructure, both inside and outside the IT park.

 

The MSC strategy is to promote Malaysia as a low cost, low attrition center for outsourcing. MSC officials say the high costs in India are unsustainable, and the high attrition rates, unacceptable. The only problem here is the availability of local quality talent. And to address this issue, MSC has tied up with Infosys to train Malaysian graduates.

 

Dato Narayanan Kanan, Sr VP -  Industrial Development, Government of Malaysia said, "We are learning from the problems India is facing. That is why we do not encourage poaching. It then becomes a vicious cycle."

 

Satyam already has a presence in MSC. And it seems pleased with the experience so far.

 

P Kunda, Satyam Malaysia said, "The Malaysian government response, be it to infrastructure, or helping us out with resources, is just fantastic. It's a long term growth story."

 

And while the recent Frost & Sullivan survey still ranks India as the no.1 choice for outsourcing, experts believe this advantage could quickly disappear.

 

Aroop Zutshi, Sr Partner, Frost & Sullivan said, "We ourselves are facing 30-35% attrition. It's a huge issue and could lead to many companies looking at other countries."

 

It may be then be just a matter of time before Indian IT giants move to greener pastures.

Yahoo buys 35% stake in Tyroo Media

Yahoo Inc on Wednesday said it will buy over 35 per cent in Gurgaon-based Tyroo Media Pvt Ltd. Tyroo, a part of Smile Interactive Technologies Group (Smile Group), is an ad-network, which offers services for advertisers and publishers.

The investment is expected to enable Tyroo to access Yahoo's knowledge of Internet advertising and help Tyroo in expansion. Yahoo, however, did not divulge the quantum of the investment.

"Through this investment, Yahoo would act as a catalyst for the entire ad-network industry in India, which is still in a nascent stage. It would also signify our increasing focus in Indian online advertising networks," Mr George Zacharias, Managing director of Yahoo India, told reporters here.

The cash infusion by Yahoo would be used to invest in technology and sales network to reach out to small and medium sized advertisers and publishers in India. Tyroo plans to offer newer ad-formats, enhanced customer support and flexibility to advertisers and publishers in managing campaigns. Tyroo is planning to to set up sales offices across the country and recruit more people by the year end. Yahoo will get a seat on the board of the company.

Re climb not all bad news; loans get profitable

The rupee may be the devil for IT companies, but a pleasant surprise for many others.

For much of India Inc that has dollar and yen loans, first quarter results may actually show a sharply higher 'other income', as Indian companies are spinning profits out of loans in their Q1 results.

Large amounts of ECBs, 16 billion in FY07 and 6.6 billion in the Jan-March quarter.

Much of these are yen loans taken when the  dollar was at Rs 44 and at 118 yen.

From March 31 to June 30, the dollar has slipped from Rs 43.45 to Rs 40.60,  a fall of 7%.

While the yen has slipped from 117.75 to 122.40, that's a drop of 4%. For Indian companies, this means their yen loans in rupee terms, will get smaller by 12%, QoQ. And if these loans are unhedged, the fall in the rupee value of the loan will show up in the loan revaluation account in their Q1 results.

It will be included in the net forex gain and get added to other income. The list of companies that took loans in the Jan-March quarter include marquee names like Rel Comm, Reliance Industries, Bharti Telesystems, JP Associates, HDFC, Jet Airways, HPCL, Rajesh Exports, Bajaj Hindustan, GMR and NTPC.

While strictly, these gains can acrrue to anyone who has taken a foreign loan last year, it is likely that loans taken in 2006 were hedged. But companies, that took their forex loans in the Jan-March quarter are unlikely to have hedged and may hence report gains to the extent of 12% of their loans in their forex account.

India's forex reserves at $214.835 bn

The forex reserves as on July 6 are up by USD 51.57 billion on year, and stand at USD 214.83 billion, Network-18 reports.

The WMA to the government has been Rs 31,949 crore as on July 6, up by Rs 16,790 crore on week basis, the report added.

BSNL switches focus to CDMA mobile

With its GSM cellular project stuck in controversy, Bharat Sanchar Nigam Ltd is pushing its CDMA-based mobile services. It has launched a pre-paid SIM-card based service on the CDMA platform for Rs 200 a month.

Over 80% of BSNL's cellular user base is on the pre-paid platform. However with the company running out of capacity on its GSM network, BSNL is hoping to get a significant part of the new subscribers on its CDMA platform. The tariff plans for the CDMA pre-paid card is similar to BSNL's GSM tariff schemes.

The capacity crunch in the GSM segment has resulted in BSNL losing significant market share over the last two months with just about 3 lakh new wireless subscribers being added every month compared to a million new users earlier. BSNL has about 27 million GSM subscribers and 3.5 million CDMA users. Since the company has so far been focusing on the GSM space, it has some unused capacity on its CDMA network. BSNL had ordered a network for 2 million CDMA subscribers in 2006 while the last GSM equipment order was done in 2005. According to industry sources, BSNL is finalising plans to issue a fresh tender for procuring CDMA equipment.

BSNL has also decided to launch data services on CDMA 2000 IX which will provide Internet surfing at 44 kbps. The company is also deploying EVDO technology, which is a third generation wireless platform. Until now, BSNL has been primarily using CDMA technology to connect last mile in rural and remote areas through wireless in local loop platform. According to sources the company may now expand the service to make it a full-fledged mobile service as it does not cost much to upgrade the network.

Will voting Taj among 7 wonders help tourism?

The Taj might get voted in as one of the New Seven Wonders of the World. CNBC-TV18 finds out what it will mean for the travel and tourism industry.

Even though it is the most photographed tourist attraction in India, the Taj Mahal attracts only 2.4 million of the 5 million foreign travellers who visit India.

If the Taj Mahal becomes one of the new wonders of the world, it could help boost the number of visitors the monument receives. But if the government wants capitalise on the opportunity, it will have to make more efforts to improve road and air links to the city that hosts it - Agra.

Mercury Travels' CEO Aashutosh Akshikar says, "Again, we get back to the basic - it is a combination of doing things right outside and on the ground in terms of infrastructure, which will help get the numbers up. There are no two ways about it."

While the Taj Mahal is the 50th most visited tourist site in the world, it fares badly when compared to other candidates for the New Seven Wonders list.

Last year, the Great Wall of China had over ten million visitors, while the Eiffel Tower and the Statue of Liberty got over six million tourists each.

India's travel and tourism industry is expected to generate USD 6.1 billion this year and is likely to account for 5.4% of India's GDP. And, being one of the new seven wonders of the world can always help these numbers go up.

Cadbury India launches Bubbaloo bubble gum

The Rs 10,000 crore chocolate company, Cadbury India, is taking another shot at the confectionary space.

 

After withdrawing its mass-market gum brand, Bilkul, the company has launched a new bubble gum - Bubbaloo from its global portfolio. The competition is stiff and the company aims to capture 5% of the gum market in the next two years.

Rate war of telecom cos moves to handsets

The rate war of telecom companies has moved now to handsets. Contract manufacturing in bulk, by countries like China, has a big role to play. CNBC-TV18 finds out if this could be a threat to the branded mobile manufacturers.

 

Vodafone is expected to enter the Indian market with a Rs 666 handset or at least that is the buzz in the market. But  a handset for Rs 777 and Rs 888 is a reality. Contract manufacturing of handsets, in countries like China, Taiwan and Korea, are helping telecom companies to offer these price points.

 

Reliance managed to sell over a million handsets in a month - business that would have otherwise gone to the big guys like Nokia or Motorola, whose USP is usually great design. But that would cost Reliance at least 25% more for the brand, as the Abhishek Bachchan ads do not come cheap.

 

So, it makes sense for operators to keenly look at contract manufacturers, especially for large orders of low-end handsets. The big guys are not particularly worried. They are convinced that their innovation will continue to draw buyers.

 

"We also sell branded aspiration. We do not entirely want to give up that. People buy Motorola for the design,etc. and we would not compromise on that," said Lloyd Mathais, Marketing Director, Motorola.

 

Experts said that currently of the over 50 million handsets sold in India in a year, unbranded phones account for just about 5% of the market. This could go up to 15% if more telecom players can offer dirt-cheap, feature-heavy phones.

 

But they added that the bulk of the market will continue to be with the branded guys since the look, feel and the cool-factor of a phone are increasingly becoming important for the Indian consumer.

RIL's world's 182nd corp giant, says FT survey

The Financial Times, or FT has released its latest survey of the world's corporate giants.

Here is how India fared. Reliance emerged as the highest ranking Indian company at 182nd position compared to 284th last year. ONGC now stands at 187th, down from 158th position last year. Bharti sits at 257th position, up from 443rd.

NTPC is at 313th. TCS bagged the 319th spot, Infosys is at 345th and Wipro is ranked 500th.

MF sector fears losing out to ULIPs

The requirement of having a Permanent Account Number, or PAN, for investing in a mutual fund may have been deferred till December. But the mutual fund industry fears losing out to unit linked insurance plans, or ULIPs,.

 

Just when the Indian mutual funds were hoping to grow their investment portfolios, they face a bigger challenge. While market regulator Sebi has made it mandatory for mutual funds to allow only those investors who have a PAN card to invest, come December, insurance ULIPs have no such requirement. And since ULIPs almost mirror mutual funds in their structure, funds fear big money flowing away from them to the ULIPs.

 

"On the one hand, it is good to know your customers and to take all the precautions. But at the same time, it should be made applicable across financial service industries, because the challenges are the same," said Mukul Gupta, CEO, Birla Sun Life MF.

 

With Sebi's rule on PAN card requirements for investments in mutual funds, fund managers fear ULIPs may now attract more equity from their potential lower-income customers. Out of the total customers buying ULIPs, only 20% submit a PAN card for identification. But insurance companies say that 40% of their customers come from small towns compared to 2-3% for mutual funds. But those fund houses launching micro systematic investment plans, or SIPs, and wanting to penetrate deep into the lower income groups in smaller cities, may get hit hard.

 

"There is a concern - a situation where there is in a way discriminatory treatment. I hope the government appreciates it and this is harmonized," said AP Kurian, Chairman, Association of Mutual Funds in India, or AMFI.

 

Mutual funds say a higher commission structure and the advantage of being able to use celebrities to endorse products, already puts ULIPs at an advantage. And now, PAN could be the latest and perhaps the most potent threat to them in their fight for investor wealth.

May exports up 18% at $11.86 bn

   

The exports for the month of May are up 18% at $11.86 bn, reports CNBC-TV18.

The trade deficit for the month stood at $6.22 bn Vs $4.26 bn. Imports for the month were up 26.4% at $18.08 bn.

Who's winning - Honda City or Maruti Suzuki's SX4?

     

India's largest small carmaker is finally making a dent in the premium mid-size market.Maruti Suzuki's SX4 has broken Honda City's stranglehold and the fight promises to intensify. However, Honda is hitting back to regain market share.

 

Honda City's six-year dominance of the mid-size premium car segment has been dented by Maruti-Suzuki's latest offering, the SX4. According to June sales figures, the SX4 and Maruti Esteem sold almost 4000 units vs 2656 of the Honda City.

 

From 14.7 per cent in May last year, Maruti's market share in the A3 segment has virtually doubled to 25.2 per cent in may this year. During the same period, Honda City's market share has fallen from 22 per cent to 14.2 per cent. Reports suggest that Honda recently circulated a 12-page document to its sales force, giving eight reasons why the City is a better buy than SX4. Maruti sees this as an acknowledgement of the SX4's success.

 

In FY '06-07, Honda City was the market leader in the mid segment selling over 40,000 cars, followed by Ford India. Honda is targeting a sales growth of 5 per cent for the City and hopes to sell 42,000 units this year. Honda says the disturbance is only 'transitional'.

 

Suzuki introduced the SX4 at a very competitive price, keeping the base variant Rs 50,000 cheaper than Honda City.

 

The battle for supremacy between the Japanese automakers is likely to intensify with both sides expected to increase their sales tempo in the coming months. Honda is gearing up to upgrade its city by October this year to fight for its leadership position. But for Suzuki, it will be a fight to create a presence in the premium sedan category, a segment in which the company hasn't had much success.

Deadline for PAN card for MF investors extended to Dec

Market regulator SEBI has changed the rules again.

 

Now you don't need to possess a PAN card by the 2nd of July, if you want to invest in Mutual Funds. That deadline has been pushed to the end of December. But now, you must show that you have applied for a PAN card. But if you're applying for micro-pension, you don't even need to show that.

 

But the mutual fund industry feels the need for proof of application will dampen retail interest. 

 

AP Kurian, Chairman, AMFI says, "This would impact the momentum and interest of the common investors particularly the low income group and those who live in the tier two and tier three cities."

 

The mutual fund industry had been lobbying hard for a relaxation of the deadline, as it feared it would lose out heavily to ULIPs who have no such requirement. Moreover, with the industry trying hard to penetrate deeper into lower income groups, a mandatory pan would have been a deterrant.

Women's wear looking westwards?

Women's outfits seem to be looking westwards. After floundering for years, the Rs 400 crore Western women's wear segment seems to be ready for takeoff. It could triple in three years.

 

It's not just workwear. Mudra Garments' Van Heusen brand has garments for various occasions in its eight-month-old Western women's wear range. The revenues are small, but the company is betting big with exclusive outlets for women and selling its brand at department stores.

 

Hemu Javeri, President, Madura Garments said, "For Van Heusen, we would like it to be 5-7% in the next year or two, in the overall business. The main hurdle is distribution and if we get more distributors, I do not see why in five-seven years' time, the women wear is as big as men's wear. That is how it is abroad."

 

And as more female wardrobes give space to western wear, brands like Excalibur, Proline and Zodiac are sewing up entry plans.

 

In the past four to five years, men's wear brands like Allen Solly and Arrow, which expanded into women's wear, have not quite taken off. Experts say that is because the fits and styles were stuck in the trappings of men's wear.

 

Other players like ITC Wills and Benetton pinch the pocket. Retailers like Westside and Shoppers' Stop offer in-house labels for this price-conscious customer

 

Neeti Chopra, Head, Marketing, Westside said, "They have to keep thinking of the value of what they are buying because always at the back of their minds, they want to buy more. Consequently, price plays a very big factor in their minds."

 

A Technopak study shows that Western suits, coats and blazers grew best value wise in the segment. Trousers, skirts, tops and T-shirts followed.

 

It is a tough task for women's apparel companies. They need to constantly launch fresh designs as many women prefer exclusive designs to mass-produced ones. Besides, women are more prone than men to switch brands if an outfit catches their fancy.

Mumbai, a global financial hub?

Maharashtra become the first Indian state to hold its own investment forum in New York this week, reports CNBC-TV18.

Many Mumbaikars say they feel at home in New York, finding common ground in geography, soaring skylines, the daily bustle and of course, the frenetic pursuit of money. And some prominent Mumbai residents currently in the Big Apple for the Maharashtra Investment Forum held at the Metropolitan Club, found the admiration is mutual.

Said Vilasrao Deshmukh, Chief Minister, Maharashtra, "They feel it is a second home. That feeling is already there because of the cosmopolitan culture of Mumbai and English speaking population."

Over 180 delegates grilled the state government officials and industry experts on some of the major hurdles faced by foreign investors in Maharashtra.

Ajit Ranade, who is the Chief Economist, Aditya Birla Group emphasised on the need for infrastructure. He said that, "The main focus is on infrastructure, power, roadways, ports - everybody seems to be aware of port congestion at JNPT."

And on the question of Mumbai emerging as a global financial hub, Maharashtra's Chief Minister acknowledged there was still work to be done.

Said the CM, "We have to do more on infrastructure. Slums and lot of encroachments need some time and some more money."

Maharashtra is the first Indian state to hold its own Investment Forum in New York, on the lines of the annual India Investment Forum.

When the organisers started marketing the Maharashtra Investment Forum a few months ago, some investors who'd never heard of the state, wanted to know if Maharashtra was a developing country. Now thanks to the positive response, the event is likely to return to New York next year.

M&M to partner Nissan Renault' for $3K car project

Nissan Renault's Carlos Ghosn said today that Mahindra & Mahindra would be the natural partner for the company's 3000-dollar car. The project was at a preliminary stage, and for now, it remains focused on selling its low cost Logan in India.

Atlantis Lands Safely in California - The landing coverage

The following events took place prior to the start of today's landing
coverage:

At 10:25 a.m. EDT, Atlantis was given the go-ahead from Mission Control to
close the 60-foot-long payload bay doors in preparation for landing.

Astronaut Steve Lindsey is in the air to provide weather reconnaissance at
the Shuttle Landing Facility at Kennedy, relaying weather information to
Mission Control in Houston. Astronaut Scott Altman is ready to take off in a
T-38 jet aircraft at Edwards to monitor the weather conditions for the
secondary landing site.

Atlantis commander Rick Sturckow was instructed to go for "Ops 3" at 10:42
a.m. This action transitions the software to the onboard computers that is
used for entry and landing.

The Atlantis crew members donned their orange launch-and-entry suits and
after suiting up, will take their assigned seats for reentry. Commander
Sturckow and Pilot Lee Archambault have been seated and are going through
their checklists.

Mission Control is discussing the "go/no go" for fluid loading. This means
the astronauts will drink large amounts of fluids to aid them in their
re-acclimation into Earth's gravity. Each crewmember will drink
approximately 40 ounces of water -- about eight ounces every fifteen minutes
-- and take salt pills to help them increase their fluid volume. Crewmembers
will drink chicken consume, orange-aid or water.

12 p.m. - Welcome to the coverage of the landing of Space Shuttle Atlantis,
coming to you from the NASA News Center at Kennedy Space Center in Florida.
The orbiter is set to land today after a challenging but successful mission
to the International Space Station.

Both landing opportunities were waved off yesterday due to possible
thunderstorm activity over the Florida landing site. There are five landing
opportunities today; two at Kennedy and three at Edwards Air Force Base in
California.

12:07 p.m. - Mission Control has waved off the first landing attempt at
Kennedy. There are potential showers in the area of the landing facility
violating weather constraints.

12:10 p.m. - The second landing opportunity at Kennedy would be at 3:55 p.m.
and 3:49 p.m. EDT at Edwards. The flight controllers are weighing both
options with Kennedy being the preferred landing site.

12:20 p.m. - Space Shuttle Atlantis is 213 statute miles above the Pacific
Ocean in orbit around the Earth.

12:53 p.m. - Astronauts Steve Lindsey and Scott Altman have taken to the
skies on the east and west coast to monitor weather conditions for both
Kennedy and Edwards landing opportunities.

Atlantis has two different runway options when landing at Kennedy: Runway 33
at the Shuttle Landing Facility is used when the orbiter comes in from the
southeast and Runway 15 is used when it comes in from the northwest. The
runway determination is largely based on wind direction and speed.

1:11 p.m. - Altman is flying a Shuttle Training Aircraft, a modified
Gulfstream business jet. The aircraft is built to mimic the orbiter's glide
to Earth. He can then relay to Atlantis what to expect if the orbiter should
land at Edwards today.

1:25 p.m. - If landing is scheduled for Edwards Air Force Base, a ferry
flight to bring the orbiter back to Kennedy for processing could take place
after about 7 days.

1:35 p.m. - Mission Control has given the crew the go ahead for fluid
loading.

1:50 p.m. - After assessing the weather data flight controllers had to wave
off the second landing opportunity for Kennedy. The forecast for Edwards
appears to be clear.

1:55 p.m. With NASA planning to land Atlantis at Edwards Air Force Base in
California, the orbiter would fire its Orbital Maneuvering System engines at
2:43 p.m. EDT, 11:43 a.m. PDT.

1:57 p.m. - The landing time for Edwards would occur at 3:49 EDT, 12:49 PDT
with deorbit burn a little less than an hour prior.

2:12 p.m. - Fifty space shuttle missions have landed at Edwards Air Force
Base. The most recent was STS-114, when Discovery landed at the California
base in 2005.

The orbital maneuvering system engines are crucial for entry. The two
engines housed in the pods at the end of the orbiter, act as a brake in
space that allows the orbiter to fall into the atmosphere back to Earth.

2:16 p.m. - Atlantis will shortly be given the command for deorbit burn
scheduled for 2:43 p.m. EDT. The deorbit burn will slow Atlantis by 200 mph,
causing it to fall out of orbit and begin the descent for landing.

2:19 p.m. - Mission Control has given Atlantis the go for deorbit burn!

2:23 p.m. - There are less than 20 minutes until the deorbit burn for
Atlantis. The orbiter is being reoriented so its tail is in the direction of
travel.

2:30 p.m. - With less than 15 minutes left to go before the deorbit burn,
Mission Control is in constant communication with astronaut Scott Altman,
who is flying the Shuttle Training Aircraft, regarding the weather at
Edwards.

2:43 p.m. - DEORBIT BURN! Flight control confirms Atlantis' two engines are
burning normally as the vehicle begins its descent toward Earth. During the
burn, Atlantis flies upside down and backwards to decrease its speed.

2:46 p.m. - The orbiter will perform a series of roll maneuvers, banking
first to the right and then to the left to help slow down its speed as it
descends for a landing.

2:48 p.m. - The convoy of landing support vehicles is moving to the staging
point on the runway at Edwards.

2:53 p.m. - The Atlantis crew is now maneuvering the shuttle to the best
position for landing on Runway 22 at Edwards. The orbiter is less than an
hour from touchdown.

2:56 p.m. - The crew of STS-117 will be dumping excess fuel overboard.

3:05 p.m. - After nearly two weeks in space, Atlantis and the crew are
headed home.

There are six main events in the landing sequence: deorbit burn, entry
interface, maximum heating, exit blackout, terminal area and approach and
landing.

3:10 p.m. - All APUs, or auxiliary power units are working normally. These
units power pumps used to power Atlantis' hydraulic systems.

3:18 p.m. - Atlantis is approaching entry interface, which usually takes
place at an altitude of about 80 miles and more than 5,000 statute miles
from the landing site. At this point in the landing phase, the orbiter
begins to feel the first effects of the Earth's atmosphere.

Sunita Williams is riding back to Earth lying on her back. She has lived in
the weightless conditions aboard the International Space Station since
December. It is common for astronauts returning from long-duration missions
to recline during the return to Earth to ease the transition back to
gravity.

3:23 p.m. - Atlantis is traveling 25 times the speed of sound.

3:25 p.m. - Atlantis is traveling at 16,500 miles per hour and will perform
a series of roll maneuvers, banking first to the right and then to the left
to help slow its speed as it descends toward landing. Early in this segment
of reentry, the orbiter's orientation is controlled by the aft steering
jets.

3:29 p.m. - During reentry and landing, the orbiter is not powered by
engines and flies like a high-tech glider, relying first on its steering
jets and then its aerosurfaces to control the airflow around it.

3:35 p.m. - Atlantis is traveling at a speed of 15,000 miles per hour.

3:38 p.m - Atlantis is at 165,000 feet and traveling at 10,000 feet per
second.

3:43 p.m. - Commander Rick Sturckow is now controlling Atlantis and he has
Runway 22 in sight.

3:49 p.m. - Touchdown! Atlantis has safely landed at Edwards Air Force Base
in California.

3:50 p.m. - Atlantis' wheels have come to a stop. Welcome home, Atlantis,
after completing a journey of more than five million miles.

3:53 p.m. - The crew will now work through a checklist for shutting down the
orbiter and "safing" the vehicle.

3:58 p.m. - The external tank umbilical doors have been opened.

4:02 p.m. - The crew has been given the okay to begin powering down the
onboard computers and will be able to depart the orbiter in about 45
minutes.

4:06 p.m. - The orbiter's three APUs have been shut down.

4:08 p.m. - The astronauts have been cleared to remove their orange
flight-and-entry suits. Work to safely shut down Atlantis' systems is
continuing.

4:11 p.m. - The recovery operations convoy has arrived. When the vehicle is
considered safe from all potential hazards and free of toxic gases, the
purge and coolant umbilical access vehicle moves into position at the rear
of the orbiter.

4:16 p.m. - The crew transport vehicle has pulled up to the orbiter. There
are beds and comfortable seats inside so the astronauts can receive medical
checks immediately after returning to Earth.

4:22 p.m. - The main gear (rear wheels) touchdown was at 3:49:38 p.m., nose
gear was at 3:49:49 p.m., wheels stop was at 3:50:48 p.m. for a total
mission time of 13 days, 20 hours, 12 minutes and 44 seconds.

Now that Atlantis has landed, it will have about six months to be readied
for its next flight: STS-122. It will again fly a new segment to the
International Space Station.

4:43 p.m. - Once Atlantis is determined "safed," all crew members will exit
the orbiter and enter the crew transport vehicle, a modified "people mover."
There will be a physician on board to facilitate the brief medical exams.

4:56 p.m. - The crew has entered the crew transport vehicle and are
undergoing their medical checkups.

5:10 p.m. - Some of the crewmembers will take their typical walk around the
orbiter for one last look at the ship.

The astronauts and their families will be flown to Houston, Texas, for their
well-deserved reunion after a very successful mission.

'Sivaji' is box office boss

It was the biggest ever release in recent times. Touted to be the most expensive Indian film ever – the recently released Rajinikanth starrer 'Sivaji' created a lot of noise. And as the earnings at the box office shows, the hype might have been worth it.

 

A week after the release of 'Sivaji', there are still no tickets available at some theatres in Chennai. As the boards outside declare, tickets are sold out till June 26. This despite the fact that 'Sivaji' has released in a record 18 screens in the city.

 

Mahesh a Rajini fan said, "Tickets are not available. But we'll try to get it somehow and watch it."

 

Another Rajni fan, Christopher said, "You have to wait for at least three hours to get hold of a ticket and you have to book it at least two days in advance."

 

Yet another Rajni fan, Imtiaz said, "I went to three theatres, but still no tickets."

 

'Sivaji' opened at over 850 screens and so the expectations from the producers are already high. The movie opened with a record 600 plus prints in Tamil Nadu alone.

 

Meanwhile, 160 of them were distributed in the US, the UK, Malaysia, Singapore and Australia. Over 320 prints have been released in Telugu for Andhra Pradesh.

 

According to reports, 'Sivaji' has become the first-ever Tamil film to find a place in the UK Top 10 at No. 9. Filmed at a budget of Rs 85-90 crores, the revenue figures projected for 'Sivaji' from Tamil Nadu alone is 60-70 Crores. It's estimated to have grossed over 25 crores over the last one week in the state.

 

Overall, the film could be expected to gross over 150 crores from ticket sales alone. The producer's strategy to release a large number of prints, so as to rake in revenues within the first few weeks of release, seems to have paid off.

 

MS Guhan, the producer of 'Sivaji' said, "Our role-model here is not to run for a long time to take revenues the way Kollywood or Bollywood is doing today. We want to change the perception and say, if you run it for so many days, it doesn't make a difference, but it's how the revenue comes back to the distributors and exhibitors."

 

It's a week after the movie hit the theatres and 'Sivaji' is still running to packed houses even now. Moreove, by the looks of it, the film is sure to break some records at the box office.

Six Indian companies make it to BusinessWeek's top-100

Six Indian companies have made it to the 2007 Information Technology 100, BusinessWeek's ranking of the top 100 global technology performers. The list includes companies in Web retail, telecom, wireless, and technology product and software services.

The Indian companies are: Bharti Airtel, Tata Consultancy Services, Infosys, Wipro, Satyam Computer Services and HCL Technologies. The US-based Cognizant Technology Solutions, which has most of its development centres in India, is also in the list. This year cable companies that expanded into telecom were also included, says BusinessWeek on its Web site.

Bharti was the top ranking Indian company in the list, but dropped to 14th this year from the 10th place last year. Satyam dropped to 73 from 48 last year while Infosys, TCS and Wipro have moved up, and HCL made it to the list this year.

TCS moved to 23rd position from 34th last year; Infosys moved 12 places ahead to 30th and Wipro eight places ahead to 49. Cognizant was ranked this year at 70, up from 84th position last year, says the report to be published on July 2 issue of BusinessWeek.

Tata Indicom launching Net radio

Tata Teleservices said it will be offering Internet radio services with its Tata Indicom mobile phone service.

As many as 41 international and domestic radio stations will be available on Tata Indicom phones across all Tata Indicom circles, even in those markets where FM services have not commenced, said a statement from the company.

This service is currently available on the Motorazr V3C, Samsung Wideo and Motorola World Phone handsets, at a subscription charge of Rs 25 for 15 days.

`Tata Indicom Mobile Internet Radio', will offer live streaming world radio-casts in English, Hindi, Telugu, Tamil and other international languages with MP3 quality sound, according to the company.

The product is easy to use and the wireless technology doesn't even get in the way of a musical experience, said Mr Pankaj Sethi, President of value added services, Tata Teleservices Ltd.

"We have identified mobile entertainment as a key growth driver and we are confident that this service will help deliver an amazing radio experience to our customers," he added.

The service offers international music, news and sports radio stations, including Bloomberg, BBC, CNN, Fox Radio, ESPN Radio and Seattle WM.

Is SBI losing the top spot?

SBI may be fighting a losing battle to retain the spot as India's largest bank with the government. Is SBI losing the top spot?

 

SBI is already second in market capitalization. The pre-issue net worth of ICICI stands at Rs 24,313 cr ore. Its post-issue net worth will be Rs 45,000 crore.

 

The net worth of SBI for FY07 stands at Rs 31,300 crore. The SBI may soon cease to be the largest bank in assets as well, given capital crunch.

 

SBI's current CAR is 12.33% and its current capital is Rs 46,000 crore. Its requirement for Basel-II is 1% or Rs 6,000 crore.

 

The government's stake in the SBI is 59.7%. However, it can be cut to 55%. Its fresh shares issuable are 4.5 crore shares. Its capital at current market price is approximately Rs 6,000 crore.

 

SBI's additional loans that may be sanctioned, stand at Rs 48,000 crore and its loan growth in FY07 is Rs. 75,000 crore

Tata Motors launches Winger, Magic

Tata Motors made an entry into the small capacity rural and urban passenger transportation segment with the launch of two new products. The first, a passenger version of the Tata Ace christened Magic and the other, a maxi-van modelled on Renault panel van `Traffic' called the Winger.

While the two new vehicles are diesel products, a CNG version of the Magic will come into the market before the end of the fiscal, Mr Prakash Telang, Executive Director, (Commercial Vehicles), Tata Motors said.

The Magic is a frills-free, last mile affordable transportation solution for the rural commuter that can transport four to seven passengers and baggage. The 9-13 seat Winger, on the other hand, modelled on the smart maxi-van and comes in four basic versions ranging from the Standard to Luxury. It can have applications for both rural and urban transportation as well as be used as ambulances and carrier vans.

Phased launch

Asserting that Tata Motors wanted to change the way people travelled in the country, Mr Telang said the company had decided to introduce the vehicles in a phased manner, starting with Maharashtra and Gujarat initially and subsequently rolling them out nationally.

The Magic has a tubular construction, rexine windows and two gates, one at the back and another on the left side. It meets BS III emission norms and is backed by a 36,000 km/12 month warranty and is currently available in a single model priced at Rs 2.6 lakh (ex-showroom, Pune). It will currently be sold through the existing chain of commercial vehicle dealerships.

Dealership chain

"One cannot rule the option of selling the product through the passenger car dealership chain in the future," Mr Telang added.

The larger Winger offers four basic variants - Standard, Deluxe and Luxury in the flat roof variant and a High Roof deluxe model. It has a `monocoque' construction (for better ride comfort) and a flexible seat configuration that can seat nine to 13 passengers. The vehicle comes with a 1.5 lakh km/18 month warranty, meets BS III norms and comes at an ex-showroom price tag ranging from Rs 4.70 lakh to Rs 6.55 lakh.

 

'Sivaji' to net Rs 25 cr in profit: Pyramid Saimira

    

P S Saminathan, MD, Pyramid Saimira Theatre, is a happy man today with the film Sivaji releasing in 200 screens in India and 52 screens in Malaysia.

The movie is being released in Andhra Pradesh, Karnataka, and Tamil Nadu with around 6.78 lakh seats per day. Swaminathan believes that going by the advance reservation, this film is a blockbuster. "In fact, the first screening is around 5 am in the morning instead of 9 am due to the amount of pressure from moviegoers," he added.

The company has made an investment of more than Rs 26 crore in the film. "Going by the advance reservation, we are expecting a topline of Rs 50 crore from this film," he said.

Swaminathan expects the film to run for more than 100 days going by the audience response. As for Malaysia, we will have an additional Rs 15 crore.

On whether Pyramid Samaira has introduced premium pricing, Swaminathan said the company has not introduced premium pricing because in south India, especially in Tamil Nadu, deferential pricing is not allowed. Nevertheless, black markets do run because of the demand supply problem, he added.