Category: Economy, Markets and Macro Views

You must have always noticed that whenever the Congress Government is in power, Indians have to face the wrath of a Financial Scam. Be it the Bofors Scam or the 1994 – Securities Scam or 2005 – SEZ Land Scam.

To your left you can see a Rs 2 coin made of Cupro-Nickel which weighs 6 gram and is 26 mm in diameter. Scamsters have been collecting coins of Rs 2 denomination and smuggling out of the country, mainly to Bangladesh where they are melted and re-minted to form statues and other metal articles. Why only coins of Rs 2 denomination ?

Because you get 6 gram of Cupro-Nickel. While in coins of Rs 5, the weight is only 9 gram, proportionately it should have been 15 gram but they aren’t because the coins of Rs 5 came into circulation when the prices of Cupro-Nickel had already appreciated and thus they have just 9 gram of Cupro-Nickel.

It is the duty of the Central Government of India to protect its currency. Instead the Government has asked RBI to pump 900 Million fresh pieces of coins in May-2007. I overheard some folks talking that for every Rs 100 of these Cupro-Nickel coins, their is a kingpin who is paying Rs 160 in Cash. Imagine the depth of the racket and our government doing nothing.

Tags: India, Scam, Currency, Coins

Amtek Auto has acquired the entire assets of U.K. based J L French’s (Witham) (JLF), a company engaged in the business of manufacturing of HPDC aluminium for automotive application. JLF’s business has been developed to offer die-casting solutions including product design, simulation, testing, rapid prototyping, high pressure die-casting, precision machining and assembly. This is predominantly aimed at the European automotive industry. The company supplies its products to Land Rover, Jaguar, Trellborg, Ford and PSA (Peugeot).

JLF’s current sales revenues are pegged at about $ 60 Million with 60% capacity utilization.

Amtek Auto is likely to fund the acquisition through $250 million foreign currency convertible bonds (FCCBs) it issued in May 2006.

Net profit of Amtek Auto rose 47.78% to Rs 65.32 crore in Q3 March 2007 as against Rs 44.20 crore in Q3 March 2006. Sales were up 35.97% to Rs 314.64 crore ( Rs 231.41 crore).

In March 2007, Amtek Auto had inked a 50:50 joint venture with VCST Industrial Products of Belgium with headquarters in Sint Truiden, Belgium, to set up a state-of-the-art manufacturing facility for powertrain components in India. The JV will primarily focus on the manufacture of gears and shafts for automotive on- and off-road applications.

Tata Motors announced that its May 2007 sales slipped 4% to 42,558 units, as compared to previous year. May 2007 commercial vehicle (CV) sales declined to 20,675 units from 21,903 units in May 2006. May 2007 passenger vehicle sales were down 3% at 17,580 units, from previous year.

Tata Motors net profit rose 25.89% to Rs 576.72 crore in Q4 March 2007 from Rs 458.11 crore in Q4 March 2006. Sales rose 20.11% to Rs 8267.00 crore in Q4 March 2007 from Rs 6882.75 crore in Q4 March 2006.

The net profit rose 25.15% to Rs 1913.46 crore in the year ended March 2007 (FY 2007) from Rs 1528.88 crore in FY 2006. Sales rose 33.31% to Rs 27535.24 crore FY 2007 as against Rs 20654.35 crore in FY 2006.

As per reports, Tata Motors has more than doubled its stake in Automobile Corporation of Goa, one of its major suppliers. The move underlines Tata Motors’ plan to increase control of the growing bus body business. Tata Motors, a co-promoter of Automobile Corporation with a stake of 10%, has upped its stake to 21% through a rights issue.

You are reading this first here…
ICICI in an internal announcement just a while ago have introduced a new brokerage slab for Intraday Options Trading. ICICI is moving towards flat brokerage with effect from May-1st. That’s right effective May-1st. New slabs are as follows.

ICICI trading interface is far better than Reliance Money which is full of software glitches and fund transfer has been a headache. ICICI is getting more serious on preserving existing customers as well. For more details read here.

As per reports, the $1-billion Amtek Group’s flagship Amtek Auto is believed to be clinching the deal to take over the foundry business of the UK-based auto component major JL French Castings.

The acquisition is estimated between Rs 150 crore and Rs 160 crore and includes the company’s operations in Whitham in the UK. Amtek Auto would fund the acquisition through $250 million foreign currency convertible bonds (FCCBs) it issued in May 2006. The company is eyeing the US firm to gain a foothold in the aluminium case components business and to gain market access to the European Union.

The US firm will also help bring expertise to Amtek Auto in the manufacturing of cylinder heads, transmission case and engine blocks.

The turnover of JL French Castings’ foundry business is Rs 240 crore ($70-80 million) and expected to touch $150 million in the next three years. The company has a capacity of about 20,000 units and services original equipment manufacturers like Jaguar, Land Rover, Ford and Peugeot among others.

Net profit of Amtek Auto rose 47.78% to Rs 65.32 crore in Q3 March 2007 as against Rs 44.20 crore in Q3 March 2006. Sales were up 35.97% to Rs 314.64 crore ( Rs 231.41 crore).

In March 2007, Amtek Auto had inked a 50:50 joint venture with VCST Industrial Products of Belgium with headquarters in Sint Truiden, Belgium, to set up a state-of-the-art manufacturing facility for powertrain components in India. The JV will primarily focus on the manufacture of gears and shafts for automotive on- and off-road applications.

The Karnataka Police have unearthed an International Drug Scandal involving Rs 20 crore. Anil Dhirubhai Ambani group (Reliance ADAG) holds 44% stake in DTDC Couriers the company which carried and transported banned Drugs between Belgaum and international destinations Scotland, UK, Zambia, Finland, Seychelles, USA, Costa Rica, UAE and South Africa.

The Karnataka Police have arrested 4 persons in this connection and have recovered a Mercedes Benz, an imported Bike and Drugs worth several crore rupees. The peddlers packed the drugs in the frame which was so solid that it could not be traced by X-ray machines. All their drug consignments were being sent through DTDC courier to foreign countries having fake self addresses.