Vol. 38 No. 2 July, 2018
Vol. 38 No. 2 July, 2018 Annual Subscription:Rs. 500/- Total Pages:76 A. S.Khan PUBLISHER Nisha Sharma EDITOR General Director CHIEF EDITOR Contents
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CHAIRMAN’S DESK
ur Hon'ble PM has reposed faith on Public Sector Enterprises (PSEs) to play a crucial Orole in building India’s future. Pursuant to the PM’s call for building roadmap for India 2022 and to realize their full potential of PSEs, SCOPE organized CEO Conclave recently which was attended by a number of Chief Executives, Functional Directors and Senior Executives from PSEs. The participants deliberated on the challeng- es posed by the PM to PSEs viz. Maximizing the geo-strategic reach of PSEs, Minimizing country’s import bill, Ways to integrate innovation and re- search in PSEs, Optimal utilization of CSR Fund, New development model for India by Indian PSEs. A presentation regarding the same was also made during the conclave. Besides these, a wide range of topics pertaining to the optimal functioning of PSEs were deliberated during the conclave. SCOPE would also be forwarding a consolidated report to the Government soon. Public Sector as an entity has been at the forefront of the Government’s agenda and has been at the helm of nation’s service. There has been a shift in the Government’s policy towards Public Sector and thrust is toward efficient management of invest- ments in them. Listing of more and more PSEs to increase people’s participation in them has become an integral part of the reform initiative. This calls for urgent efforts at updating the knowledge and skills of the PSE executives in the newer paradigms in financial communication and investor relations management so that they can take up their tasks more proficiently and professionally. There is also a growing need for acquainting the PSE executives
Kaleidoscope July, 2018 5 in the areas including stock market functioning, the innovation. I hope Public Sector CEOs would take process of entering the primary market, investor re- full benefit of this programme. lations, positioning of financial brands, media and We have lot more unique, innovative programmes corporate communication strategies, among oth- lined-up for the Public Sector in future. We expect ers. Considering the same, SCOPE is organizing a the same support from PSEs as they bestowed on two day seminar on Financial Communication and us in the past. SCOPE is also planning to bring out Investor Relations Management. Policy Makers, a special issue on ‘New India: Vision 2022’ and the Academicians, Stock Market Experts, Financial role Public Sector need to play for inclusive growth Media and Brand Image Experts would share of "New India" and acheive the vision of 2022. I their experience and expertise in the seminar. This hope SCOPE and PSE fraternity work in tandem so special issue of KALEIDOSCOPE is dedicated to that PSEs achieve greater heights. Financial Communication and Investor Relations and contains interesting articles from well-known academicians and professionals. Continuing its effort toward bringing excel- lence in PSEs, SCOPE will soon be conducting an Advanced Leadership Programme exclusively for Chief Executives of PSEs. SCOPE has col- laborated with University of Maryland School of Public Policy (UMD), Washington DC to conduct this programme. The program is first of its kind Ved Prakash as it is a unique amalgamation of leadership and Chairman, SCOPE
6 KaleidOscope July, 2018 ARTICLE Social Media & Investor Relations
Dr. U. D. Choubey Director General SCOPE
he world today stands comes from the lack of their per- use of social media. The use of so- at fourth Industrial formance measurement or evalu- cial media has been progressing TRevolution. First Industrial ation. With data analytics into the at a very fast speed with a new revolution (1765) was about picture, this problem will now mode being launched every day mechanization, the second (1870) soon see the back door. A lot of with Facebook, Twitter, LinkedIn, about arrival of automation, tele- IR is attributed to existing stake- WhatsApp etc. being the pioneers graph and telephone, the third holders, potential stakeholders and leaders in the social media (1969) was about rise of nuclear and regulations. When it comes space. This has compelled com- energy and electronics. The fourth to stakeholders it sums down panies to explore new avenues that we are witnessing now is to understand a comprehensive to connect with the investor so about digitization and Artificial overview of their attitude and be- as to maintain a healthy investor Intelligence. The whole world haviour that has direct impact on relationship thereby changing the is going through this churning business results. This trivial as- nature of investor relations from of a huge amount of data that pect has a complex algorithm at- reactive to proactive. comes in every day, every hour, tached to it which basically deals For a country that is considered every minute. The magnitude of with new media or popularly to be digitally new, India has it could be easily understood by known as social media. We shall done exceptionally well as far the fact that every second there talk about it in the following sec- as use of social media is consid- are 54,907 Google searches, 7,252 tions viz.: ered. As per recent newspaper tweets, 125,406 YouTube video • Internet 2.0- Social Media reports, Facebook users in India views and 2,501,018 emails sent. • Social Media Fitness of Investor have crossed 240 million by end The internet 2.0 is about data ana- Relations of 2017 which is approximately lytics and Artificial Intelligence. 18% of the Indian population in It is used to predict the outcomes • PSUs and Social Media for Investor Relations 2017. In fact, internet has become with newer tools and methods. more accessible with launch of • Social Media and the Impact on Organisations all over the globe smart phones. Statistically, a user IR are going through it, adopting it in India spends 200 minutes ev- and Investor Relations (IR) is no • Data Analytics to move forward ery day on mobile internet which different. • Artificial Intelligence (AI)- is 300 minutes in USA. Further, For far too long, IR profession was Conquering a new territory Indian mobile internet users rather considered as reactive than spend approximately 70% of time proactive. A survey of IR profes- Internet 2.0- Social Media on social media apps in compari- sionals at Fortune 500 companies Over the past two decades face of son to US mobile internet users revealed that demonstratingthe the internet has also undergone a which spend only 50% of the time value of investor relations to the rapid and a radical change. The in- on social media apps. With all the top management is one of the ternet has particularly seen a par- statistics in place, the power of so- biggest challenges which mainly adigm shift with the increasing cial media cannot be undermined.
Kaleidoscope July, 2018 7 ARTICLE
It is a strong platform which mul- Globally it has been middle life style or superannu- tiplies the reach of the user mani- ated who are looking at multiply- fold. Further, studies reveal that observed that investor ing returns on their savings) and the gap between old and middle- relations personnel the young investor (people who aged people using social apps have just begun their careers and and young people using social are a party to all key look at starting early in invest- apps is diminishing day by day. ment). Hence, the companies are decision making of the operating in an era where they Social Media Fitness of Board/ company and have a daunting task to cater to Investor Relations multiple types of investors with A dynamic digital world has are consulted actively minimum tools and a simple yet crisp financial language. paved way for fast moving com- so as to be proactive munication which if not commu- This is where social media can nicated in the right way would in understanding the play a very vital role. There is not only create an adverse im- probable movement no question that social media is pact on the financial health of now mainstream with billions of the company but also result in of market sentiments people connecting at single point heavy losses to the investors. In in time. In fact social media is be- the present-day world where so that any negativity ing widely used in B2B (business there is increasing talk about cor- can be countered most to business) and B2C(business porate governance and transpar- to customers) platforms so as to ency, need for free flow, fair and efficiently and in a provide their products a greater true information to the investors reach however, companies are yet has also become imperative to well-planned manner. to use this new communication the length that time, type and ex- PSUs have a vibrant medium for connecting with the tent of communication becomes investors. the differentiating point for in- team of financial and vestment decisions. A proactive The advent of social media and company which provides a ready technical professionals rapid proliferation of mobile de- package to the investor not only vices should be explored as a who can be formed improves its branding but also platform for communicating and increases the chances of greater into effective Investor establishing a closer and more di- investments flowing into it. rect connection with the investor. For this purpose, companies need With time and regulatory man- Relations team. to follow a three-fold mechanism dates, companies have leaped to so as to deal with strategic, struc- optimising their respective web- tural and cultural challenges. sites for investors. They have about its functioning than ever made all efforts to provide all fi- before. This has greatly benefited Foremost, digitalising investor nancial and related information the young investor who is invest- relations needs a clear strategy. that an investor may require for ing small amounts into the stock For this purpose, the concerned taking informed investment de- markets but contributes greatly to organisation and its investor rela- cisions. Infact, technology and the increase in market capitalisa- tions team should analyse its in- digitisation has contributed sig- tion. In fact, due to greater spend- vestor base along and its sector/ nificantly to simplifying the in- ing capacity, ease in information industry. They should be able to formation flow to the investors flow and greater variety of invest- identify the kind of information/ which makes it easier for the ment tools (like mutual funds, news that impacts the investor investor also to absorb. Further, ETFs etc.), investor base has also and how. The objective should due to increasing digital foot- increased. Now investors can also be to establish a correlation be- print, investors have become be bucketed into three categories- tween the kind of information more and more involved in the institutional investor, middle in- that needs to be shared and the company and are more informed vestor (people enjoying an upper investor base.
8 KaleidOscope July, 2018 ARTICLE
Once the strategy and objective only-pvt-sector-investment-can- a stand-alone and independent are clearly defined, personnel give-legup-to-economy-crisil/ar- function and accordingly develop and technical know-how needs ticle3649282.ece]. team and resources so as to make to be identified. The investor rela- Stability and good corporate gov- all efforts to keep the investors tion team proficient with financial ernance practices that the PSUs satisfied and happy. Globally it language should be made to adopt are probably the reasons has been observed that investor adept to technology and also that investors pose extreme con- relations personnel are a party trained to combine financial lan- fidence in these companies. This to all key decision making of the guage with digital innovation. can be seen from the fact that out Board/ company and are consult- They should also be developed so of 331 CPSEs, only 50 are listed ed actively so as to be proactive as to identify the frequency and on various stock exchanges in in understanding the probable movement of market sentiments type of communication that India forming a market capitali- so that any negativity can be should be established with the sation of INR 17.76 lakh crores. countered most efficiently and investor. Further, PSUs listed on BSE form in a well-planned manner. PSUs 15% of the total market capitalisa- Lastly, the approach to including have a vibrant team of finan- tion of all companies on BSE. This social media into the corporate cial and technical professionals is a staggering share given the culture should be open to innova- who can be formed into effective fact only 15% of PSEs are listed in tion and real time up-gradation Investor Relations team. if needed. For this purpose, rel- the stock market. Investor confi- PSUs also need to move beyond evant stakeholders including in- dence in the PSEs can also be seen their area of comfort and make vestor relations team should be from the response that CPSE ETF and Bharat 22 ETFs have received use of social media so as to devel- systematically involved in sur- op a formal and informal chan- veying and analyzing customer in recent years. The most recent second tranche of Bharat 22 ETF nel of communication with the data, obtaining vital information investors. Various applications to make improvements, which in has received an overwhelming response from the investors over- can be used so as to provide not turn should be incorporated into subscribing it by over 2.5 times of only financial and related infor- the design of new investor rela- the base issue size. Even various mation to the investors but also to tions tools if needed. tranches of CPSE ETF launched take a feel as to how the investors are likely to react to key projects/ in 2016-17 also received an over- PSUs and Social Media for launches of the company so as subscription of many times over Investor Relations to be better prepared to counter the base size. Public Sector Undertakings have market reactions and volatility. been the pillars for guiding the All this proves that the investors Indian economy towards growth have faith in the PSUs with re- Caution cannot be trajectory. They have time and spect to their functioning, trans- undermined parency and safety of money again proved their mettle by pro- In this era of technical advance- viding stability to the economy invested into them. However, ment and rapid movement of and individual earning. This has the question is - are PSUs doing technology social media can be been witnessed in 2007-08 global enough to actually strike a chord an effective tool for companies melt down when the private sec- with the investors or the same is to communicate with the inves- tor GDP growth slipped sharply being taken for granted? tors however, the same should from 9.7% p.a. (pre-crisis level) to Though over the years PSUs have be done with extreme caution. 6% p.a whereas the CPSEs pro- increased their interaction with Cyber risk with respect to leakage vided the much-needed cushion the investors and also introduced of information, rapid flow of neg- by growing strongly at 12.3% measures to understand their ative or fake news, over reaction resulting in overall GDP growth grievance and response with a to company news etc. needs to of India at 7.6% for the said years defined time frame however use be addressed. For this purpose, which otherwise would have of social media for doing the strong internal controls, regular been a meagre 6.2% [www.the- same is still absent. Need is to technical audits and a dedicated hindu.com/business/Economy/ recognise investor relations as risk management team need to
Kaleidoscope July, 2018 9 ARTICLE
Data Analytics to move organizations who are not al- forward ready into it are actually late. The Data Analytics can be roughly next big step that IR profession classified into three sub-catego- need to take is to get in data ana- ries viz. lytics and AI. • Collecting the data Artificial Intelligence (AI)- • Filtering the data Conquering a new territory • Generating Outcome World is already moving at a tremendous pace. Sustainability All these three steps though they of an organisation is the leading soundeasy butit’s a tough nut to cause of concern. Here comes be envisioned so as to take opti- crack. Internet is a busy place. a new solution with an age-old mal benefits of technology for the 6,000 to 7,000 tweets are shared discovery of Charles Darwin- company benefit while address- every second which equals to Survival of the fittest. The ing plausible risks associated more than 350,000 every minute, Organisation that adapts quickly with the same. The regulators 500 million per day and around to the changing circumstances have stepped-in so as to ensure 200 billion tweets every year. At will be the fittest and will ensure that the information exchange any given second there are 20,000 its longevity. AI is the new hot- on the browser was reliable and people on Facebook and during cake and to understand it and im- trustworthy. Hence, there are this time five more people open plement it in organisation across mandatory provisions of disclo- an account [http://www.daily- the function is the new task. sure of financial and related in- mail.co.uk]. Through AI it would be possible formation by the companies on In this buzzing platform, col- to extract trivial facts from the sea their respective website so as to lecting data, filtering it to your of data. It is already changing the ensure reliability of data which need and generating an outcome way IR functions and it can prove the investors would use to make comes with a bunch of codes and to be an important tool in the decisions about the health of the tech-heavy algorithms. Majority armour both operationally and company. of the Public Sector complain that strategically. AI can handle data Social media is here to stay and there is a lack of input data. In faster, analyse it quicker than it would be beneficial for compa- such circumstances, we need to humans. This is Data Analytics nies to imbibe the same as an im- come together to form a common 2.0. AI or machine learning could portant communication medium platform for PSEs to help them soon analyse the conference calls, with the investors especially the out with the complex equation video calls and meetings (physi- tech savvy new age investors. of data analytics. Using social cal and virtual) with stakeholders However, as more and more in- media for better relations is just and can present their sentiment vestors participate in social me- one aspect, but analysing the im- or behaviour. It could also predict dia, companies would be expect- pact, assessing the future change their behaviour in future. This in ed to disseminate more and more or tapping onto the market senti- turn can help IR practitioners to information through the same. ment is a different ball game. shape their communication and Though social media can provide According to a recent Greenwich strategies to an extent that they an optimal way for companies Associates report, globally could know what, when, where to be transparent and simultane- around 80% of institutional inves- and how to communicate with ously grow their investor base so tors regularly use social media. the investors in the course of a as to maximise their share valu- In addition, 30% of respondents financial year. Social Media, Data ation however growing public agreed that information provided Analytics, Artificial Intelligence spotlight on companies, constant through social media platforms are changing the course of busi- media reporting and rising com- directly impacts an investment ness and Investor Relations are plexity in business transactions decision or recommendation. no different. Adapting is the best necessitates use of this important The use of social media as a tool skill to survive and survival is the medium with caution. for IR has become passé and the best skill to flourish.
10 KaleidOKaleidOscope July, 2018 ARTICLE Government of India’s Investment in CPSEs – A Policy Perspective Kuntal Sensarma Economic Adviser DIPAM, Ministry of Finance
he Hon’ble Prime Minister (DIPAM) with an expanded man- investment of funds; and (iii) en- in the CPSEs’ Conclave date. The change in nomencla- sure best possible outcome from Theld in April, 2018 urged ture and work allocation denotes the investment made in CPSEs. the CPSEs to make a collective a paradigm shift in the thinking Some of the salient features of effort to double their contribu- process of the Government on its these Guidelines include: tion (net value addition) to GDP strategy to manage its investment • Every CPSE would pay a mini- and become the “Third Arm” of in Indian CPSEs. mum annual dividend of 30 per revenue generation for the Centre With this change in approach, cent of PAT or 5 per cent of the after Direct and Indirect taxes. In the Government recognized the net-worth, whichever is higher the light of above statement, the importance of investments in subject to the maximum divi- current policy of Government of CPSEs as an asset for accelerat- dend permitted under the ex- India on investment and disin- ing economic growth. The need tant legal provisions. vestment in CPSEs gains added of the hour is to adopt a compre- importance. hensive approach for addressing • Every CPSE having net-worth of at least Rs. 2,000 crore and In order to look at the Govern- critical inter-linked issues such cash & bank balance of over Rs. ment’s policy perspective on as (i) leveraging of assets to at- 1,000 crore shall exercise the investment in CPSEs, one has tract fresh investment; (ii) capital option to buy back its shares. to go back to a pre-Budget re- restructuring; and (iii) financial view meeting held on February restructuring. • Every CPSE shall issue bonus 6th, 2016 wherein the Hon’ble Accordingly, DIPAM after de- shares if their defined reserves Prime Minister discussed the ap- tailed deliberations brought out and surplus is equal to or more proach being followed for man- comprehensive guidelines on than 10 times of its paid up eq- aging Government’s investment “Capital Restructuring of CPSEs” uity share capital. in CPSEs. As a follow-up to this on 27th May, 2016 for efficient • A CPSE where market price or review meeting, the Government management of Government’s in- book value of its share exceeds decided to migrate from a divest- vestment in CPSEs by addressing 50 times of its face value will ment-based approach to the con- various aspects, such as, payment split off its shares appropriately cept of efficient management of of dividend, buyback of shares, provided its existing face value investments in CPSEs. The Budget issues of bonus shares and split- of the share is equal to or more speech of the Finance Minister ting of shares. The comprehensive than Re. 1. mentioned about renaming of guidelines are expected to result the Department of Disinvestment in (i) leveraging of net-worth for There is an inter-Ministerial as the Department of Investment higher investment;(ii) disincen- Committee on Management & Public Asset Management tivise parking and sub-optimal of Government’s Investment
Kaleidoscope July, 2018 11 ARTICLE
CPSEs and improve value of its enterprises for economic growth. The aforesaid transac- tion was expected to create an integrated public sector oil major having presence across the entire value chain. Exchange Traded Fund (ETF), as an asset class offers the benefits of liquidity and diversification of risk with similar tax benefits as applicable for equity. With stable and better yield than broader market index and low transaction cost, this instrument has grown very fast, especially in CPSEs (CMGIC), headed & management control; and among the new investors like Secretary (DIPAM), which con- achieve 25 per cent public retirement funds and retail. siders exemption requests from shareholding as per extant SEBI Globally also ETF is a popu- CPSEs. Implementation of these norms; while raising resources lar and fast growing asset class. guidelines has lead to a higher for the Government. Starting from January 2017, the Government started using index payment of dividend by CPSEs; • Strategic disinvestment by way based ETF to offer an investment buy-back of shares etc. The high- of sale of substantial portion opportunity in CPSEs to pen- er dividend payment has also of Government’s sharehold- sion funds and retail investors resulted into an improvement in ing in identified CPSEs up to in India. The New Fund Offer investors’ confidence in CPSEs 50 per cent or more; wherein (NFO) of BHARAT 22, consist- and their market capitaliza- the Government will exit from st ing of 22 major stocks, which tion. As of May 31 , 2018, the 52 non-strategic business; while was opened for subscription in listed CPSE stocks accounted for promoting efficiency and November 2017, had been over- a little above 10 per cent of the to- professional management of subscribed in all segments of tal market capitalization in both the company; and unlocking investors, such as, anchor in- the major stock exchanges. This optimum economic potential vestors, retirement funds, retail clearly gives scope for listing a of business enterprises. Stra- investors and others, i.e. Quali- larger number of CPSEs in the tegic disinvestment decisions fied Institutional Bidders (QIB) stock markets. are based on recommenda- /High Net worth Individuals As far as the disinvestment policy tions of the NITI Aayog on case (HNI). The Government re- is concerned, the Government to case basis. ceived Rs.14,500 crore from has certain thrust areas/ broad fo- this NFO. A Further Fund Offer cus as outlined below: The above measures were sup- plemented by new instruments (FFO) of Bharat 22 was launched • Listing of profitable CPSEs including the buy-back of shares in June 2018 with a target to which will result in unlocking by large CPSEs having huge sur- mop up Rs 6,000 crore with the value of the company; and plus; merger and acquisitions a green-shoe option of another promoting people’s owner- among CPSEs in the same sector; Rs 2,400 crore. The scheme ship and accountability of the and launch of exchange traded was oversubscribed by 2.57 stakeholders. funds (ETFs). times of the targeted issue size. The Government has realized • Disinvestment through minor- The acquisition of HPCL Rs. 8,325 crore approximately ity stake sale in listed CPSEs by ONGC is in line with from this offer. wherein the Government to Government’s policy to efficient- retain majority shareholding ly manage its investments in As a follow-up to a Budget
12 KaleidOscope July, 2018 ARTICLE announcement made on 1st (ToT) model in respect of 9 roads February, 2018, the Government The real challenge for the involving a total length of 680 is exploring the possibility of Government is to work km and has received substan- creation of a Debt-ETF to enable tial upfront payment from the CPSEs to access the debt/ bond out suitable linkages concessionaire. Infrastructure market to partially meet the among various strategies/ Investment Trusts (InvITs) and CAPEX needs by leveraging their Real Estate Investment Trusts aggregate strength. CPSE Debt- methods so that the (ReITs) could be other models ETF will be created by including overall target of achieving adopted respectively for opera- eligible CPSEs in the index. The tional assets like power transmis- a high economic growth index may include bonds issued sion lines, telecommunication by select CPSE (issuers) with con- (while keeping the fiscal towers etc. and land & buildings. sistent AAA/AA+ credit rating deficit under control) The major activities involved in and high primary and secondary this task would be the identifica- market transactions. An Inter- is achieved. Hence, it is tion of assets & relevant CPSEs; Ministerial Group (IMG) has been essential to ensure that identifying suitable models of constituted with the approval of monetisation; valuation of assets; the Finance Minister for appoint- collectively the CPSEs preparation of legal documents ment of one Advisor, one Market contribute significantly to & model contract agreements; fi- Maker and one Legal Advisor for nalization of suitable institutional creation, launch and implementa- the GDP; the productivity mechanism along with levels of tion of Debt ETF. and revenue of CPSEs approvals. Detailed consultation process with the Administrative As a result of this multi-pronged gets augmented through approach towards disinvestment, Ministries/ CPSEs concerned the Government could garner higher Capex /business and other stake holders is an essential pre-condition for start- Rs. 46,247 crore as disinvestment activities etc. The proceeds in 2016-17 vis-à-vis an ing the exercise. average annual amount of Rs. Government has a wide The real challenge for the 20,403 crore in the previous five range of options including Government is to work out suit- years from 2011-12 till 2015-16. able linkages among various the restructuring of The total realization/ receipts in strategies/ methods so that the 2017-18, was Rs. 1,00,057 crore CPSEs, greater leveraging overall target of achieving a high which is an all-time record in the of net-worth, achieving economic growth (while keeping history of disinvestment. the fiscal deficit under control) is higher capital expenditure Another new initiative to aug- achieved. Hence, it is essential to ment the resources of CPSEs by optimising return ensure that collectively the CPSEs is through monetization of se- contribute significantly to the on investment and lect assets with stable revenue / GDP; the productivity and rev- cash flow potential. Accordingly, generating more resources enue of CPSEs gets augmented through higher Capex /business DIPAM has been assigned this through disinvestment major task of working on public activities etc. The Government sector asset monetization. Asset and monetisation of the has a wide range of options in- cluding the restructuring of monetisation / asset recycling is a assets of CPSEs. way of unlocking potential value CPSEs, greater leveraging of net- of assets lying idle / unused for worth, achieving higher capital generating revenue for expansion expenditure by optimising return of projects/ new projects or for transmission lines, telecom tow- on investment and generating reducing debts of CPSEs. Assets ers, surplus land, unused build- more resources through disin- amenable to monetization could ings etc. Already NHAI has ad- vestment and monetisation of the include highways / roads, power opted a Toll-Operate-Transfer assets of CPSEs.
Kaleidoscope July, 2018 13 ARTICLE
Raising the Reporting Bar: Why Integrated Reporting (IR) Matters in the Digital
Economy Andrew Harding FCMA, CGMA Chief Executive Management Accounting AICPA*
ver the last 20 years, accountants to provide a true pic- This leads to better informed businesses have under- ture of an organisation’s value. decisions, management of key Ogone dramatic change. This is where integrated report- risks and identification of new Technology is disrupting not only ing may help. opportunities. the products we offer but also the The Harvard Business School way we earn profit. Businesses Why Integrated Reporting has collected evidence which have moved from the manufac- makes sense shows that sustainable compa- turing of tangible goods to ser- Integrated reporting, or
* Association of International Certified Professional Accountants.
14 KaleidOKaleidOscope July, 2018 ARTICLE framework supports a funda- businesses globally using
Resources to help you on your
Kaleidoscope July, 2018 15 ARTICLE Transformation of the Indian IPO market
Prithvi Haldea Founder Chairman PRIME Database
his is a story of the abun- including Ponds, Colgate and be obtained. (Many years later, dant malpractices that Hindustan Lever came to the there was the IPO demat scam Tplagued the IPO market market at prices determined in- in 2005 where thousands of fake before SEBI came into being in credibly low by the then CCI depository accounts were opened 1992 and then of SEBI enacting a (Controller of Capital Issues). by some fraudsters to increase plethora of regulations and plug- While short-term investors made their allotments). ging the loopholes, all of which decent money, long-term inves- The 80s saw the first IPO boom, has led to a huge transformation tors reaped a bonanza. This was with hundreds of companies tap- of the IPO market. the first spread of equity cult in ping the market, but mostly of My own tryst with the IPO mar- India. low-quality. But worst to come ket began in 1977, when Reliance, Of course, with each profitable was the 1992-1996 period when then a textiles company, offered listing, the demand for the fresh an unbelievable 3,911 equity IPOs its shares to the public. What re- IPOs grew phenomenally leading hit the market. A large number sulted greater interest were the to extremely huge oversubscrip- of these were from ‘fly-by-night’ FERA issues in that decade when tions, and thereby reducing the operators. SEBI had just been set the Janta government forced exercise to a lottery-kind system. up, pricing controls had been re- MNCs to dilute their equity by The era of multiple applications moved, and lack of proper regu- issuing shares to the Indian pub- and fraudulent applications be- lations and infrastructure facili- lic. Scores of such companies gan so that more allotments could tated this huge fraud on investors.
16 KaleidOscope July, 2018 ARTICLE
Let us examine some key areas Advertising of transformation, brought about The 80s saw the first IPO Those days, issuers would get mainly by SEBI aimed primarily boom, with hundreds away with any kind of advertis- at investor protection. ing…tempting headlines, use of companies tapping of models and celebrities, and Entry Norms promise of a bright future, includ- Those days, just about anyone the market, but mostly ing even assured dividends. The could just think of doing an IPO SEBI advertising code banned all of low-quality. But and then within a short period of this; now advertisements can- even launch it. Over the years, worst to come was the not use any models or make any SEBI experimented with several forward-looking statements. In entry norms, and among other 1992-1996 period when fact, the contents have to conform strict entry norms, it now requires to the disclosures made in the a track record of Rs 15 crore of an unbelievable 3,911 prospectus. profits over the preceding three equity IPOs hit the years. Non-conformity with this Institutional role norm requires greater allocation market. A large number Those days, almost all issues to institutional investors. were aimed only at the retail in- of these were from ‘fly- vestors who more often than not Prospectus by-night’ operators. became individual venture capi- Those days, prospectus used to talists, taking huge risks. This be a tabloid kind of spreadsheet, SEBI had just been set was transformed by the introduc- 6-8 pages. With SEBI mandating tion of the category of Qualified more disclosures, though pro- up, pricing controls had Institutional Buyers-comprising hibiting forward-looking disclo- of mutual funds, insurance com- been removed, and lack sures, the size of prospectus grew panies, FIIs and the like. Half of rapidly, and it has now become a of proper regulations all IPOs are reserved for them, 500+ page document. Of course, with another 15 per cent for the involvement of law firms into and infrastructure HNIs and only the balance 35 per prospectus drafting has contrib- cent for the retail. Moreover, the uted to this too. While there was facilitated this huge introduction of anchor investors now gives to the public investors little to read then, it now requires fraud on investors. great skills to cull out the mean- comfort on the issuer company ingful information. A fall-out of and the offer price. this was the overgrown size of the abridged prospectus meant were carried in advertisements Better indicator for retail for the retail investors, as the size too. Issuers could get away with investors of this too became 100+ pages. any kind of highlights. A good Those days, retail investors were Last year, SEBI redesigned the reform was to substitute these lured into IPOs by stories of grey abridged prospectus to ensure it by Risk Factors, which however market premium and high rat- does not exceed 10 pages and is over a period of time, assumed ings by some investment journals. in a reader-friendly font and lay- ridiculous dimensions and had Now, they have the comfort of out. Now, each draft prospectus to be shifted to many pages in- some indirect pointers mainly the is also released to the public for side the prospectus. With almost institutional demand in the IPOs. its comments before SEBI gives everything being described as a Here too, in the initial years, the its clearance. risk, this section has lost its mean- institutional players used to put ing significantly. However, what in huge orders on the opening Risk Factors have surely helped is the upfront day creating an impression of Those days, prospectus used to disclosures of all indictments, substantial interest and thereby carry issue highlights, and that too court cases and other liabilities in tempting the retail investors into on the cover page; and the same the Risk Factors. applying, and then withdrawing
Kaleidoscope July, 2018 17 ARTICLE
electronic form and settlement is done on a T+2 basis.
Issue Objects Those days, almost all IPOs were to part-finance some kind of a project. Now, in most cases, the initial financing is done by PE/ VC firms and more and more IPOs are for providing an exit to these investors. Other major issue objects now include raising work- ing capital, retirement of debt and general corporate purposes. Gone are the days of IPOs fund- ing greenfield projects; now are the days of seasoned offerings. or downsizing their applications. crores of application forms. Also, Now, SEBI has disallowed with- now the investor can apply from Pricing drawal or downsizing by the in- the comfort of her home. Those days, one would have only stitutional investors. fixed price IPOs. Now, in all is- Allotments sues, the price discovery takes Application Money and Those days, there was a compli- place through the book-building Refunds cated system of allotments for the process (though within a price Those days, one could apply us- retail, and it was open to huge band of 20 per cent). ing a cheque or a demand draft, manipulations. Later, proportion- and even cash, and stand in long ate allotments were introduced Stock Exchanges queues outside the few desig- but this led to even the few suc- Those days, in the 80s, India had nated bank branches to submit cessful applicants getting a very as many as 23 stock exchanges, the application form. It used to tiny number of shares. SEBI has with BSE in the lead. Every IPO take several days to reconcile the now prescribed a minimum rea- had to, by law, list on at least data, and hence the float would sonable allotment. For the institu- one regional exchange, leading be kept with the issuer on which tions, there was the questionable to assured business for all the he would enjoy huge interest. discretionary allotment system exchanges. There were a huge Moreover, in oversubscribed is- where the issuers and investment number of malpractices with sues, refund warrants would be bankers could actually oblige the these broker-run exchanges. The mailed back to the millions of preferred institutions. This has securities scam of the early 90s unsuccessful investors; many of now been changed to propor- hastened the design of an auto- these getting lost in transit lead- tionate allotment for them too. mated exchange-NSE. BSE soon ing to huge investor complaints. Moreover, a very strict KYC has followed suit by going electronic. With the introduction of ASBA, eliminated the chances of a 2005- The other regional exchanges the application money now stays like demat scam. could not update their technolo- in the investor’s account, though gies and also lost on compulsory blocked, and then is credited back Electronic shares listings, and these closed down. to her account for all refunds. Those days, shares were allot- Now, there are just 2 exchanges Besides an early listing, this has ted in paper form. This not only with nationwide terminals. resulted in huge cost savings for gave rise to several malpractices the issuers, and almost negligible like forged certificates, but also Instruments investor complaints. Gone also entailed huge costs and delays Those days, besides equity, the are the days where every issuer in subsequent transfers. Now, market witnessed several differ- had to wastefully print lakhs and shares can be issued only in ent kinds of instruments like fully
18 KaleidOscope July, 2018 ARTICLE convertible debentures, partly convertible debentures, multi- option debentures and preference shares. For years now, there have been only equity IPOs, and once in a while, issues of pure non- convertible debentures.
Underwriting Those days, all issues had to be compulsorily underwritten, assuring the issuer of the IPO amount even if the issue bombed. In good times, this led to huge underwriting commissions for banks and brokers. But several devolvements in bad times led to pressures on removing this con- of IPOs falling dramatically, there FERA dilution days, that all IPOs dition. Now, there is no hard un- are just about 50 active merchant should not only list at a premium derwriting of IPOs which means bankers. Ditto has been the fate of to the offer price but always and that if an issue fails, it has to be printers, registrars and advertis- forever trade so. They refuse to withdrawn and it does not de- ing agencies. accept that an IPO becomes a sec- volve on the underwriters. ondary market stock on the day New types of offerings of listing and will go up or down Number of investment Those days, besides IPOs, there as other stocks do. bankers were just FPOs and rights issues. What has not changed also is Those days, in the IPO boom peri- Now, there are QIPs, IPPs, SME, the fact that the fundamentals od of the early 90s, there emerged OFS and Startup platforms. alone are no guarantee for either more than 1500 SEBI-registered the success of an IPO or for its merchant bankers, most of whom What has not changed post-listing performance. Senti- actually helped fraudulent is- What has not changed is the in- ments too continue to play an im- suer tap the market. Now, with vestor expectation, built in the portant role. stricter regulations and number
Kaleidoscope July, 2018 19 ARTICLE Evolution of Financial Communication in India – Imperatives for Corporate Communication Professionals Dr. Jaishri Jethwaney Visiting Professor, Institute for Studies in Industrial Development
inancial communication mission statement from ‘Zindagi towards the investor once these has grown to be an im- ke saath bhi. Zindagi ke baad bhi’ get listed. With such changes, the Fportant part of corporate to “ We Understand India Better”. organizations in general felt the communication trajectory. The Liberalization also brought about need for interfacing with institu- seamless markets sans interna- an unprecedented spurt in media tional investors and shareholders tional boundaries, the growing growth, especially in the electron- through the primary market. The aspirational middle class, double ic segment. Out of a few hundred corporate communication de- income generating households, news channels, there are about partment works closely with the risk taking attitude, desire for half a dozen exclusive business Finance and company secretariat a secure future for self and chil- channels. In the print media, the in a company, especially when it dren should idealy contribute in most visible trend was the pro- enters the primary market. The creating a large target audience liferation in trade media. The success of an IPO (Initial Public who are expected to be interested number of financial newspapers Offering) depends a great deal on in the capital market and invest- and magazines increased con- the communication strategy and ment options. India is said to be siderably. Mainstream newspa- tactics in attracting the investor. a nation that attracts maximum pers also added special business saving in the world, but not nec- pages to satisfy the need of an Defining Financial essarily in terms of investments average reader in the capital mar- Communication Function in the stock market. The economic ket and the growing investment In general, the corporate commu- liberalization in the 1990s in India opportunities. nication department of an organi- brought with it many players With a liberalized economy in zation looks after communication from overseas. The market saw the 1990s, a number of compa- relating to “public issues” and in- FDI (Foreign Direct Investment) nies in sectors like IT, infrastruc- vestor relations. The internal de- pouring in many sectors, includ- ture and power felt the need to partment often takes the help of ing the financial sector, necessitat- expand for which they needed ad agencies and PR firms, which ing both the national and interna- finance. The Government of India have experience in handling fi- tional players to reach out to the encouraged public sector compa- nancial advertising and inves- existing customers and potential nies to explore the primary mar- tor relationship management ones with their USPs and prom- ket for financing their projects. respectively. ises of value additions. The life Successive governments have Insurance Corporation of India divested select public sector orga- What should the (LIC), an unchallenged player nizations from the 1990s to gen- Corporate Communication for about five decades in the in- erate funds on the one hand for Manager know of Financial dependent India, understood the the development agenda but at Communication? onslaught of competition as nev- the same time to increase public Experts believe that financial er before. It quickly changed its sector enterprises’ responsibility communication is an “important
20 KaleidOscope July, 2018 ARTICLE factor in reducing the cost of capital, provided the company discloses full, timely and relevant information about its financial situation. The cornerstone of fi- nancial communication policy is the signal, the managers of a com- pany send to investors”. i The corporate communication manager is expected to have a good hang of the capital market functioning, the role and scope and functions of various regula- tory bodies and institutions, and most importantly an acquain- tance with the entire process of going to primary market and the • Institutional investors (for in- investors to clear doubts and re- legal aspects of financial advertis- vestor relations) store its confidence. The early 1990s ing. A good knowledge of various • Merchant bankers witnessed shaky investor confi- dence in various scrip’s, resulting financial instruments/products is • Private investors (for investor in frantic selling of various fi- crucial for the success of a corpo- relations) rate communication manager in nancial instruments. Voltas came • Stockbrokers iii financial communication. out with an ad campaign assur- ing its investors that everything The corporate communication Post Enron and closer home, the was fine with the company. manager needs to have a working Satyam fraud, people’s exposure “Another Quiet Day for Voltas knowledge of the methods of cor- to various scams and scandals At the Stock Exchange” was porate reporting in different cor- in the corporate world has in- the headline of its print ad. In porate set ups, viz. public sector, creased. They are now expecting the copy, the ad informed the private sector and NGO sector; better accountability from organi- readers that over 90 percent how the financial information can zation where they have invested. shareholders with Voltas had be used innovatively to keep the The information sought encom- never sold their instruments, organization in positive focus in passes various areas like mea- thereby assuring the investors the media; and the role of audit- surement, disclosure, impact of that its shareholders had confi- ing and financial information in financial results on shareholders’ dence in the company. Stock ex- corporate governance. ii wealth and the options they have changes, before the transactions Key publics for financial when the market has toughened. became automated and electronic communication Corporate annual report is the were a hyperactive place with Dolphin lists the following key basic document for the purpose. thousands of people trading, cre- target audience for financial com- However, when investor con- ating a cacophony of sorts. The munication by an organization: fidence is shaken for some rea- ad appropriately had the picture son, it is important for the orga- • Analysts of a crowd of people engaged nization to touch base with its in trading at a Stock exchange, • The city shareholder community, both thus qualifying the headline”… • Financial journalists the private and institutional Another Quiet day…”.iv i www.verimmen.com ii www.cardiffac.uk iii Richard R. Dolphin, The Fundamentals of Corporate Communication, 2001 (UK:Buttersworth-Heinemann) p.95. iv Jaishri N. Jethwaney, Adrash Kumar Varma and NN Sarkar, Public Relations Concepts, Strategies and Tools, 1994 (New Delhi: sterling Publishers) pp. 169-170
Kaleidoscope July, 2018 21 ARTICLE
Many scholars feel that financial processes that precede and deter- brand often has physicality (a markets represent not just the mine these acts. refrigerator, a fridge, a car etc.); capital, numbers and figures, on the other hand, a financial which an average person can External influences on brand is some thing intangible hardly decipher, but also a very Consumer Behavior that hinges on our understand- complex social reality. What me- There are many factors that influ- ing, based on our experience with dia carries may be in bits and ence our behavior, some of which the company; its promise and the pieces, which may or may not include the influences from the market buzz. When a consumer be the whole truth. Therefore, following: invests in an IPO, he is investing it is important for listed com- into future till it is listed. The risk family; Society; social class; panies to share information is often high. A financial brand is Reference groups; Opinion lead- fully with shareholders not fluid against a solid brand. It is ers; Culture; Media only through the annual report like when you wish to purchase that is available once in a year, Consumers are rational, impul- property, where you want to live but continuously through the sive, irrational, megalomaniacs, and where you want to invest can company’s interactive website or sycophants at different times, be two separate things. direct mailers. The case of ICICI depending on who they are and bank is an apt example of how it what they wish to access and pos- One has seen established com- lost no time in interfacing with its sess. All these characteristics are panies keeping the price of the existing customers and the pub- found in consumers, but vary in bond/scrip high. The result of- lic at large, when grapevine ad- degree. ten depends on the market sen- versely affected its image in the timent. Some are able to pull it aftermath of the falling of finan- Psyche of an average others may fail. Mark Zukerberg cial behemoths in 2008. The bank Consumer was not able to pull it off. The undertook a generic customer ed- As the consumer has the pur- IPO failed miserably on various ucation campaign, which lasted chasing power, so he/she calls counts. Some analysts felt it was for months. the shots. Any purchase precedes priced high at over $200. Others felt the proposition was not at- It is important to understand with a process within the mind of tractive enough. While others felt consumer psyche, consumer be- the consumer; therefore persua- Zuckerberg was too snobbish. havior and whether the behavior sive communication through ad- According to a Forbes analysis, would be different from a brand vertising and other promotional “Company filings after the- mar that s/he picks up from the mar- avenues from various brands and ket closed on Friday night how- ket to a financial product. experience of self or those the consumer trusts also matter in the ever revealed the extent to which the banks who led Facebook’s Consumer Brands vs. making of a purchase. The think- initial public offering - in which Financial Brands ing process can be fast or long- $16bn of shares were sold to new Before we look at the consumer drawn, depending on the prod- investors - were forced to move in and financial brand differen- uct/service, the amount involved to the market and buy shares in tial, let us look at the consumer and the purchasing capacity. order to keep the price above the behavior. v Is a Traditional Brand $38 level” What is Consumer Different from a Financial People who understand the dy- Behaviour? Brand? namics of the stock market take Consumer behavior, as it is called risk, others may wait for products is the sum total of acts of indi- We pay to buy a brand that aims that are offered at par. viduals involved in obtaining at satisfying our need, want or and using economic goods and aspiration- the satisfaction may Consumer segmentation services, including the decision be immediate or futuristic. The Consumer segmentation is an v https://www.forbes.com/sites/timworstall/2012/05/20/the-failure-of-facebooks-ipo/#538212a129f4
22 KaleidOKaleidOscope July, 2018 ARTICLE important decision for reach- promoters include Birlas, Mittals, lags behind some southern states ing out to potential investors. Bajaj, Agarwals, Jains, Goyals as the following chart from the Organizations exploring the pri- and Goenkas, the Parsi promot- Hindu’s Businessline reiterates. mary market have to sub-divide ers include Tatas, Godrej and It points out a noticeable shift in the market into distinct subsets of Wadia. vi cash trading in equity. Traditional customers, where any subset may Participation of Gujarati house- trading hubs in Gujarat such as conceivably be selected as a target holds in equity investment is con- Ahmedabad, Baroda and Rajkot market to be reached with a dis- sidered better than countries like have seen their cash turnover tinct marketing mix. Let’s see the France (15 percent), Hong Kong halve in January 2014 year com- profiles of some investing com- (14 percent), Taiwan (13 percent) pared with March 2011. munities in India vii and Germany (9 percent). On the other hand, southern cities Analysts however have found a such as Bangalore and Hyderabad Investing Communities notable shift since 2011 as Gujarat have recorded a jump. viii in India India’s investor population as per media reports has plummet- Exhibit ed from the claimed 20 million (probably exaggerated) in the Cash turnover increases in Bengaluru and Hyderabad 1990s to eight million according March 2011 January 2014 Change % to the Swarup Committee report ` Crore of 2009. Ahmedabad 22,664 10,770 -52 Gujarat tops the list among all Baroda 2,856 1,370 -52 Indian states. According to SEBI Rajkot 7,479 4,046 -46 handbook- 2009, 24.1 percent Bangalore 1,737 5,517 218 Gujarati households invest di- rectly in equity. The percentage Hyderabad 4,407 11,141 153 in Gujarat is six times higher than Mumbai/Thane 1,76,154 1,80,682 3 the all-India figure of 3.7 percent Kolkata/Howrah 20,621 20,768 1 households investing in equity. A detailed community-wise anal- So the once reticent South Indians, have climbed the ladder. Analysts ysis of promoters of India Inc list- until recently perceived companies in the South as generally “conser- ed in the BSE-500 index reveals vative, non-aggressive and reactive”, while their counterparts in the that Gujaratis leave Marwaris North were considered aggressive risk-takers. The differences they way behind when it comes to often commented were sometimes so stark that they seemed like two market capitalisation of the listed different countries. companies on the Bombay Stock Exchange. Maharashtra Learning to Pick-up More than 35 percent of the stock In an effort to encourage the sons of soil to invest in the stock market, market wealth of India is with the Shiv Sena in the past has held workshops in various parts of the Gujarati People. city to give them a better idea of the share trading business. The party Top Gujarati promoters in- organised workshops in Goregaon and Borivli with the assistance of clude the Ambanis, Premji, a few local leaders to shed light on the stock markets to its cadres and Tanti, Sanghavi, Kotak and oth- Maharashtrians as reported by Mumbai mirror, 2007. ers. While the leading Marwari SEBI through its outreach program to catch people young, has been vi http://gujaratinfo.in/. vii http://www.dnaindia.com/india/report-figure-it-1-out-of-every-4-gujaratis-invests-in-equity-1537807 viii http://www.thehindubusinessline.com/markets/stock-markets/are-gujaratis-losing-interest-in-equity-trading/ article5796180.ece
Kaleidoscope July, 2018 23 ARTICLE
phases of advertising described as under, besides following strin- gent stipulation from the regula- tor, SEBI. The pre-issue phase: During this phase the companies adver- tise about the public issue in the offing, giving various details of the portfolio manager, the mer- chant bankers, the size of the is- sue, the value of the share/ price and also the risk factors. Most of the organizations however, pre- cede this with an image building campaign, which does not give encouraging universities and col- context. More and more women any indication about the ensuing leges across the country to allow are educating themselves and in- financial campaign. The compa- it to conduct free seminars on vesting online. nies through an institutional cam- their premises. How to build PSE as a robust paign aim at warming up the in- brand and make a connect with vestors about the positive aspects So what kind of Investor the consumer? of the company. emerges for a financial Issue phase: This phase of ads brand and where can he Recommended strategy in have all the details about the is- be reached? reaching out to potential sue including the closing date. He is in his 30 + investors Companies, whose issues get Has role models or friends who Investor education to build inves- oversubscribed, have to go to the have made it big tor confidence Presence in me- regulatory authorities, in case dia. An assurance of government they wish to retain the oversub- Is a risk taker backing of IPOs and other finan- scribed amount. This may or may Playing with fire gives him the cial products not be approved by the concerned kick • Reaching out where the poten- authorities, the reason being that tial investors are if there were more issues in the Has high aspirations pipeline, they would not like to • Strategic use of media, especial- saturate the market in advance. Is focused ly local media Is media savvy • Smart websites, both collective Post issue phase: In this phase, a and individual PSEs formal announcement about the Reads trade media; watches trade closure of the issue is made. Some channels. Presence on social media companies also issue “Thank Testimonial bytes from investors you” ads for the investors. Online – investing An internal multi- disciplinary community team to keep a constant watch on Financial advertising There’s a new breed of Indian in- the stock and react in real time. Financial advertising is defined as vestor – younger, more informed, paid form of communication re- more confident and well paid. Communication Process lating to various financial instru- The days of going to your bro- for lauching the IPO ments through the use of mass ker are gone. De-mat is in and Financial advertising is a term media. Hundreds of crores of with it a world of possibilities has used for communication that is rupees are spent by various com- opened up for investors. aimed at raising money from the panies and financial institutions There’s another quiet revolution, capital market. The ad campaign with a view to attract investment. one that’s significant in the Indian for an IPO has to undergo various Critics believe that financial ads
24 KaleidOKaleidOscope July, 2018 ARTICLE have become drab and lackluster issue ads could use only informa- channels broadcast them hour on thanks to the restrictions imposed tion contained in the prospectus. hour. There are other issues like by regulatory authorities from Celebrity endorsements were out. paid editorials and the practice of time to time. The three major Issuers then onwards had to deal exchanging shares for advertis- scams, viz., the Harshad Mehta, with stringent entry norms, pub- ing space. The ideal way for SEBI Home Trade and more recently lic scrutiny of offer documents would be to formulate a code of the Satyam computers fraud have and substantive due diligence by conduct for media, even probe duped the system of thousands stock exchanges. The issue of real media that colludes to mislead of crore rupees. The Indian capi- concern according to financial investors”, commented Haldea in tal market has gone from strength market expert Prithvi Haldea was his column.x to strength. Critics point out that not as much the paid advertising Interestingly, while Sachin the regulators may have become as the editorial contentix. “Issuers Tendulkar, Rahul Dravid and stringent before the launch of is- and merchant bankers often talk Kapil Dev continue to endorse sue, but there is not much to sug- to the media about matters out- products of insurers such as gest that post an issue, any mea- side the prospectus. While they Aviva, Max New York, etc., SEBI sures are in place to safeguard the can be deterred, the bigger prob- bars mutual funds from get- interests of the investors till a ma- lem is with non-company people ting celebrities to advertise their jor scam breaks out and people writing or talking about IPOs. schemes. The rub off effect on the and media raise a hue and cry. Television, for instance, is flood- mutual funds of these organiza- It has been observed that compa- ed with analysts voicing views tions can be possible through this nies create immense hype through and recommendations. Channels strategy on the issues, overlooked paid for publicity and also invite managements of issuer by the regulators so far. through third party endorsement companies. Worse, while issu- Let us now look at some of the route when the issue is open. The ers cannot talk about their day- highlight of SEBI’s regulations on media publicity through editorial to-day over-subscription details, ad campaigns endorsement is really a cause for concern as the gullible investor SEBI’s Code of Advertisements is taken for a ride, believing that what appeared in the media must “An advertisement shall be truthful, fair and clear and shall not contain any be legitimate. statement, promise or forecast which is untrue or misleading. An advertisement shall be considered to be misleading if it contains – The financial campaigns by and Statements made about the performance or activities of the Portfolio Manager in large, were quite innovative dur- the absence of necessary explanatory or qualifying statements, which may give ing the 1980s, but some became an exaggerated picture of the performance or activities of the Portfolio Manager, too ‘out-of-box’, alerting SEBI to than what it really is. An inaccurate portrayal of the past performance or portrayal in a manner which issue stringent norms. One such implies that past gains or income will be repeated in future. ad campaign that earned the ire of The advertisement shall not be so designed in content and format or in print SEBI was by West Coast Breweries as to be likely to be misunderstood, or likely to disguise the significance of any that had a bikni clad Pooja Bhatt, statement. Advertisement shall not contain statements, which directly or by a popular cine star in the 1980s in implication or by omission mislead the investor. its issue ad. Besides attracting the The publicity literature should contain only information, the details of which are contained in the Portfolio Managers scheme particulars. As the investors may attention of the readers, it also ex- not be sophisticated in legal or financial matters, care should be taken that the posed the thoughtlessness of the advertisement is set forth in a clear, concise and understandable manner. Extensive company in using glamour that use of technical or legal terminology or complex language and the inclusion of excessive details, which may detract the investors, should be avoided. in no way educated the potential The advertisement shall not contain information, the accuracy of which is to any investor about the issue per se. extent dependent on assumptions. SEBI reacted in 1996 with compre- If however, in any advertisement the Portfolio Manager, indicates any minimum hensive guidelines, which, among rate of return or yield to the prospective investors, resources to back such a guarantee shall also be indicated.” other things, prescribed that ix The Indian Express-Express Money/31st July, 2006 • x ibid.
Kaleidoscope July, 2018 25 ARTICLE
English news channels.xi The 24x7 trade channels both in English and Hindi have a variety of programs that include, expert opinion, continuous stock market update, interviews with company heads, financial aspect of events/ happenings, marketing based programs, phone-in programs with investors, financial/ invest- ment experts advice et al.
Table: Week: 8 (February 2017) Top 3 Channels - English Business News Rank Channels Impressions (000s) sum Media’s role in emergence of ‘accidental opin- 1 CNBC TV 18 530 ion makers’. Free share tips for stock market influencing 2 ET Now 255 Intraday trading, information ga- Cashing on the buoyancy of 3 NDTV Profit and 73 lore on mobile by SMS for share the stock market from the late NDTV Prime trading in BSE and NSE share Eighties, one has found a sud- All India (U+R): NCCS AB: Males 22+ markets in India, Share informa- den spurt in the trade media. Individuals tion on Facebook, Twitter and The number of financial papers what have you. Table: Week: 8 (February 2017) Top 2 increased from two to five. The Channels - Hindi Business News business magazines have also Trade media in India Rank Channels Impressions proliferated. Mainstream news- (000s) sum Trade media is indispensable for papers have also added the busi- 1 CNBC Awaaz 1787 ness pages in their dailies. With financial communication. The cir- 2 Zee Business 1204 the coming of the satellite chan- culation and reach of trade media may not be able to match to the HSM (U+R): NCCS AB: Males 22+ nels, about half a dozen trade Individuals channels also appeared. One, all level of the mainstream media in of a sudden found stocks and most of the cases, but there is no stock market news going on 24x7 denying that it commands a niche Hindi business channels as re- on these channels. a new bread readership and viewership of peo- flected from the above figures of financial analysts have also ple who are interested in the stock clearly outshine the English busi- cropped up giving advice on vari- market, besides the opinion mak- ness channels. ous financial products. ers and political class. The last one Now let us look at the top three and a half decades has witnessed English and Hindi news channels Trade channels use continuous a tremendous spurt in trade me- scrolls beneath the programmes, dia growth and access in the coun- Table: Week: 8 (February 2017) Top 3 gauging the health of the com- try. The 24x7 specialized trade Channels - Eng News pany stocks and share prices; ad- channels have changed the way Rank Channels Impressions visory programs on the channels trade media is being perceived (000s) sum exhorting viewers to buy so and now. The following tables from 1 Times Now 798 so stocks; the phone-in-programs BARC data for week 8 released 2 India Today 498 have made a general citizen inter- in March 2017 provide some in- Television ested in the stock market. There teresting glimpses in to the reach 3 CNN News 18 404 has also been a huge spurt in Net of business channels both Hindi All India (U+R) : NCCS AB : Males 22+ advises – which experts put as the and English and top Hindi and Individuals xi http://bestmediainfo.com/2017/03/barc-india-updates-tv-universe-total-tv-viewership-jumps-up-by-18/
26 KaleidOKaleidOscope July, 2018 ARTICLE
Table: Week:8 (February 2017) Top 3 to organize positive publicity at a Channels - Hindi News The corporate cost, which may go against the in- Rank Channels Impressions communication manager terests of gullible investors, who (000s) sum depend a great deal on media 1 Aaj Tak 126940 is expected to have a good about their stock options. 2 India TV 101439 hang of the capital market Cover stories on various sectors 3 ABP News 93517 or specific companies in trade HSM (U+R): NCCS All: 15+ Individuals functioning, the role magazines are valuable tools and scope and functions for corporate communication, es- Here too the contrast is too stark pecially before a company floats to be ignored. CNBC TV 18 how- of various regulatory an IPO. ever, has more reach than India Positive mention about organi- Today and CNN news channels. bodies and institutions, zations in business newspapers Both put together are no where and most importantly helps a great deal in their im- near the Hindi news channels, age build up and in equity terms but despite that Business chan- an acquaintance with when compared with public- nels, both Hindi and English have the entire process of ity generated in mainstream niche viewership, which is an im- newspapers. portant factor while deciding the going to primary market In summation, the corporate co- media mix. and the legal aspects The following table reflects the mmunication professionals need reach of business newspapers in of financial advertising. to keep a close watch on the India trade media, its editorial content A good knowledge and follow various reporters and Table: 9.6 of various financial analysts for strategic use both S. Name of Circulation in proactive and reactive times. N. publication (In Lakhs) instruments/products is In retrospect, it was trade journal- 1 The Economic Times 405,940 crucial for the success of a ist Sucheta Dalal who unearthed 2 Mint 226,000 the Harshad Mehta scam in the corporate communication early 1990s. 3 Business Standard 217,000 4 The Hindu Business 1,17,000 manager in financial The information requirements Line of trade media are slightly dif- communication. 5 Financial Express 84,000 ferent from the mainstream me- dia, hence it is important for the corporate communication pro- The readership of the financial publications has provided cor- fessionals to feed such media papers will be two/three times of porate communication manag- accordingly. the circulation figures. With digi- ers with a great opportunity to A good hang of the capital mar- tal versions of all the newspapers showcase the achievements of ket operations, company’s profit now avaialble on the Net, the their organizations and get in- and loss analysis, its financial reach can be claimed to be many terview-based programs for their instruments, how they are doing times. top management. However, in to- and market terminology comes in The proliferation of news day’s commercial and cut-throat handy while writing for the me- and trade channels and print environment, it is not impossible dia or facilitating media events.
Kaleidoscope July, 2018 27 ARTICLE Effective Investor Relations Management – an Instrumentality for Success
Ashok Mishra Company Secretary FSNL
company is an artificial someone who buys a stock are referred to as "financial public entity recognized by the both investors. An investor who relations" or "financial commu- Alaw as a legal person that owns a stock is a shareholder. nications." Investor relations is exists independently with rights (Source Wikipedia) considered a specialty of public and liability. This means that a Once we clear with the term in- relations in various countries. company is treated as a separate vestor now it’s all about building For a prudent Corporate person from its participants. Then relationship with the investors Governance many larger pub- how can artificial legal entities hence the management stream licly traded companies now have can address the issues of an in- Investor Relations (IR) comes into dedicated IR officers (IROs), who vestor who allocates capital with play. IR is a strategic management oversee most aspects of corpo- the expectation of a future finan- responsibility that is capable of rate announcements shareholder cial return? What are prerequi- integrating finance, communica- meetings, press conferences, pri- site of this essential relationship tion, marketing and securities vate meetings with investors, between the artificial legal entity law compliance to enable the (known as "one-on-one" brief- and the investor? How to cater most effective two-way commu- ings), investor relations sections the various information needs of nication between a company, the of company websites, and com- an investor? These are some of financial community, and other pany annual reports. The inves- the general questions which each constituencies, which ultimately tor relations function also often one of us exposed to in this cor- contributes to a company's se- includes the transmission of in- porate world. curities achieving fair valuation. formation relating to intangible Since the entire gamut evolves The term describes the depart- values such as the company's near the investor hence one must ment of a company devoted to policy on corporate governance understand who the investor is. handling inquiries from share- or corporate social responsibil- Investor is an outcome of invest- holders and investors, as well as ity. Recently, the field has trended ment. Investment could be by others who might be interested towards an increasingly popular way of equity, debt, securities, in a company's stock or financial movement for "interactive data", real estate, currency, commodity, stability. and the management of company token, derivatives such as put and Typically IR is a department or filings through streaming-data call options, futures, forwards, person reporting to the defined solutions such as XBRL or other etc. For being an investor there is top management. In some com- forms of electronic disclosure no distinction between those in panies, investor relations are have become prevalent topics of the primary and secondary mar- managed by the public relations discussion amongst leading IROs kets. That is, someone who pro- or corporate communications worldwide. The investor rela- vides a business with capital and departments, and can also be tions function being an important
28 KaleidOscope July, 2018 ARTICLE function must be aware of cur- role in protecting the interests of rent and upcoming issues that A company is an investors. The preamble of SEBI an organization or issuer may artificial entity describes that the basic functions face, particularly those that re- of the Securities and Exchange late to fiduciary duty and orga- recognized by the law Board of India is “to protect the nizational impact. In particular, it as a legal person that interests of investors in securities must be able to assess the various and to promote the development patterns of stock-trading that a exists independently of, and to regulate the securities public company may experience, with rights and liability. market and for matters connected often as the result of a public dis- therewith or incidental thereto". This means that a closure (or any research reports SEBI COMPLAINTS REDRESS issued by financial analysts). company is treated as SYSTEM (SCORES) through this The investor relations depart- electronic platform facilitates in- a separate person from ment is closely associated with vestors to lodge complaints on- the office of Company Secretary its participants. Then line with SEBI and subsequently on legal and regulatory matters how can artificial legal view its status. that affect shareholders. As per With introduction of SCORES current guidelines laid down by entities can address the SEBI is equipped for effective the Securities Exchange Board issues of an investor who IR and various cases are dealt of India under Regulation 30 of by the SCORES in the best inter- allocates capital with the the SEBI (Listing Obligations est of the investors namely com- and Disclosure Requirements) expectation of a future plaints pertaining to Endorse- Regulations, 2015, the listed financial return? What ment/ Consolidation/ Share splits, entities must have a Policy for Non-receipt of share transfer, Determination of Materiality are prerequisite of this Alternative Investment Funds, of Events or Information” essential relationship Bankers to an Issue, Buy back of and it must authorize the Key securities, Collective Investment Managerial Personnel name- between the artificial Schemes, Corporate Governance/ ly Managing Director, Chief legal entity and the Listing Conditions, Credit Rating Financial Officer and Company Agencies, Custodians of Securities, Secretary so that authentic in- investor? How to cater Debenture Trustees, Delisting of formation is being disseminated the various information securities, Depository, Depository to the public at large which fa- Participants, Fake and Forged mat- cilitates informed action of the needs of an investor? ters, Foreign Institutional Investors, investors. These are some of the Insider Trading, Investment When we understand that there Adviser, KYC Registration is a periodic reporting system general questions Agency (KRA), Price/Market prevalent in each of the Company which each one of Manipulation, Merchant Bankers, the question of effectiveness Minimum Public Shareholding, us exposed to in this of Investor Relations happen Mutual Funds, Portfolio Managers, to be significant for Corporate corporate world. Prelisting/Offer Document (Sha- Governance. At present the in- res), Prelisting /Offer Docu-ment vestors communicate with the en- (Debentures & Bonds), Refund/ tity either in physical mode (let- Allotment/ Dividend/ Transfer/ ters/post) or by way of electronic Bonus/ Rights/ Redem-ption in physical or electronic mode. mode (email/web or software Interest, Registrars to an Issue/ based systems) and it was seen In the Indian context the Share Transfer Agent, Stock that certain genuine issues of in- Securities and Exchange Board Brokers, Stock Brokers, Sub- vestors neither gets resolved both of India (“SEBI”) plays a vital brokers, Takeover/ Restructuring,
Kaleidoscope July, 2018 29 ARTICLE
to the potential impact of legal li- ability claims awarded by courts, and the consequential impact on the company's share price, IR often has a role in crisis man- agement, for example, corporate downsizing, changes in manage- ment or internal structure, prod- uct liability issues and industrial disasters.
Initiatives in the interest of Investors The Sarbanes-Oxley Act of 2002 has also increased the importance of investor relations in the finan- Underwriters, Venture Capital Fu- We divide the organizational life cial markets. The act established nds and others etc. cycle into the following phases: new requirements for corporate governance and regulatory com- All corporate entities are expect- • Startup (or Birth) pliance, with an increased em- ed to observe IR in letter as well • Growth Phase. This is some- phasis on accuracy in auditing as spirit. IR is not expected to be times divided into an early and public disclosure. called as effective where an inves- growth phase (fast growth) and tor is continuously writing a letter Notable provisions of the act maturity phase (slow growth or with reminders concerning his/ which apply to investor relations no growth). However, maturity her issues which may pertain to include enhanced financial dis- often leads to refund of share application mon- closures and accuracy of financial ey, rectification of data (Spelling/ • Organizational Decline. When reports, real-time disclosures, off- PAN), succession of share certifi- in decline, an organization will balance-sheet transaction disclo- cates in case of deceased share- either undergo: sures, pro forma financial disclo- holder, Non-receipt of dividend, • The Renewal Phase. Sometimes sures, management assessment of Non-receipt of Share certificate great leaders can change the internal controls, and corporate and Non-receipt of interest on se- course of the ship. responsibility for financial re- curities etc. ports. Similar to Sarbanes-Oxley • Death are the Keeping the Promise for The root cause of all these mal- a Strong Economy Act (Budget practices in IR are mainly due to Each of these phases present dif- Measures), 2002 in Canada, diverse working practices in or- ferent management and leader- Financial Security Law of France ganizations since all the organi- ship challenges that one must in France, and J-SOX in Japan. zations have a defined life cycle deal with. Hence the level of IR The European MiFID Directive, they are prone to develop their would also be dependent upon although principally concerned own system which may not be the life cycle of the entity and here with investor protection, also efficient enough. The organiza- the chances of malpractices or ir- covers regulation and compliance tions are not static, they change. regularities emerge which may for listed European companies. Like children, organizations typi- severely affect the IR. So we can cally go through different phases. interpret that one must do some- When we talk about India, the Different experts will argue on thing to detach the IR with that Indian government is doubling how many phases there are, but of changing life cycle of the orga- down on its drive towards greater there is elegance in using some- nization so that the investors are financial transparency. In the re- thing easy to remember. protected and dealt fairly. Due cent years, a number of legislative
30 KaleidOscope July, 2018 ARTICLE amendments and regulatory mea- sures have targeted shell com- panies, benami holdings, black money transactions, financial re- porting by banking institutions, and various means of tax evasion. The latest move anticipated by the Ministry of Corporate Affairs will make it obligatory for unlist- ed public companies to demate- rialize (demat) their shares. This is a vital initiative in the interest of the Investors. Parallel to this, the SEBI announced that while investors could still hold shares in physical form after December 5, 2018 – they may not be able rules come into effect or risk an the real beneficiaries of shares. to transfer them after that dead- investigation for insufficient in- line. This is to eliminate fraud by come disclosure or litigation due Conclusion share-transfer agents. to compliance failures. In common parlance the finance Further, companies in India will Complying with the newly is regarded as the lifeblood of a need to maintain a record of approved legal norms ahead of business enterprise. The success “beneficial owners”. This was official effect may prove to be of an organization largely de- introduced in the Companies conducive for firms operating in pends on efficient management (Amendment) Act, 2017 early this tightly regulated sectors, such of its finances. But in real sense year to improve corporate gov- as in aviation, print media and and considering the life cycle of ernance, and follow the norms broadcasting, multi-brand re- an organization, the investor op- set by the Paris-based Financial tail trade, banking, and private erate behind the lifeblood of a Action Task Force (FATF-GAFI) security. The demat system con- business enterprise and the life to combat money laundering. verts physical shares into an elec- and values of any organization Foreign investors doing business tronic format, thereby making are much more dependent on the in India should pay attention to it easier for tax authorities to effective management of Investor when changes in the establishment track shareholders as well as Relations.
Kaleidoscope July, 2018 31 ARTICLE
32 KaleidOKaleidOscope July, 2018 ARTICLE
Kaleidoscope July, 2018 33 ARTICLE
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34 KaleidOKaleidOscope July, 2018 ARTICLE
Kaleidoscope July, 2018 35 ARTICLE
36 KaleidOscope July, 2018 ARTICLE Investor Relations in the Digital Age
Nitin Mantri CEO, Avian Media
he digital age is upon us, informed, but also send out a and misinformation in real time. impacting all disciplines, message of transparency and Teconomies and industries. openness, two vital requirements Globalisation Though the process of digital of the digital age. In addition to Social media platforms are also transformation began decades company websites, webcasts, enabling IR companies to go be- ago, the pace of change has be- video conferences, webinars and yond their local areas and home come rapid, radical and unpre- web concerning are replacing tra- countries and expand their reach dictable in recent years, compel- ditional face-to-face shareholder virtually anywhere. Competitive ling companies to introduce new meetings. Press releases have IR companies are aggressively us- capabilities in order to thrive. The become passé as online distribu- ing Facebook and Twitter to pres- investor relations (IR) industry is tion channels are more effective. ent their key messages to a wider no different. IR has witnessed a Announcement of products and investment community, cutting paradigm shift from being a reac- services are made on company across physical borders and cus- tive industry to a proactive one websites and then amplified tomer demographics. Thinking with the widespread use of social through social media channels. international is no longer an op- media, big data and artificial in- tion but critical for growth, with telligence (AI). Social media IR companies scrambling to pro- The use of social media is a huge vide clients with the opportunity Digitised communication progression from the days when to purchase shares in corpora- Digitisation has dramatically most IR companies were wary tions around the world. changed the way IR companies of networking platforms. Today, function, enabling them to move Twitter, LinkedIn, Facebook and Big data faster and deliver better results StockTwits are standard media In this regard, big data is playing to clients. Communication with tools used by IR companies. Since a major role in helping IR compa- investors is no longer restricted IR companies are now directly en- nies keep a finger on the pulse of to telephonic conversations or gaging with customers through the market. With the help of data face-to-face meetings. Innovative, these platforms, they have first- analytics IR companies are now fast-moving companies are reach- hand knowledge of customer anticipating market fluctuations ing out to customers and build- needs. This is enabling them to and predicting events before they ing an active shareholder base conceive, design and deliver ser- even take place, thus protecting through their websites. Effective vices faster. Proactive IR compa- customer interests. Big data is IR websites have an exhaustive nies are increasingly addressing also helping IR companies under- range of information, including customer grievances through stand investors’ needs and appre- financial results and business re- social media platforms, and also hensions and tailor their products ports, to not only keep customers mitigating the threat of fake news and services accordingly.
Kaleidoscope July, 2018 37 ARTICLE
Artificial intelligence good reputation. In the next few With so much of data be- Digitisation has years, I foresee the introduction ing produced every year - the dramatically changed of rigid market regulation to pro- International Data Corporation tect investors’ interests. recently revealed that more in- the way IR companies Also, IR companies expanding formation has been produced function, enabling them their footprint worldwide will in the past two years than in all have to take into account geopo- human history, without artificial to move faster and deliver litical risk when building a port- intelligence (AI) it is not pos- better results to clients. folio. New age IR professionals sible to interpret them and take need to understand the geopoliti- action. Machine learning is help- Communication with cal landscape and assess the risks ing IR companies process data investors is no longer thoroughly before foraying into quickly and make informed de- foreign markets. cisions. Investors’ strategies are restricted to telephonic The future, despite trepidation, is now being executed based on bright for the IR industry in the data-backed knowledge and not conversations or face-to- digital age. Companies that are just speculation. AI is particu- face meetings. Innovative, leveraging digital technologies larly helping IR professionals in to drive innovation and estab- market surveillance and effective fast-moving companies are lish closer customer connection targeting. reaching out to customers are already doing well. Digital and building an active adoption has leapfrogged many Conclusion industries and done correctly, it Technology, we are told time and shareholder base through will streamline the IR industry as again, is a doubled-edged sword. well, and increase its efficiency. their websites. Used well, it opens doors of op- The way I see things, working portunities, and when misused it from the clouds will be the next spells doom. IR companies need the investor community and this big development, and soon we to be mindful of this basic tenet of demand will only increase with will have an investor eco-system. technology before adopting digi- time. The industry needs to en- The possibilities are endless and tal tools. sure integrity and transparency the developments will be no less There is a growing clamour for in all its dealings if it wants to exciting. IR is one space I will accountability and security in retain customer trust and build a keenly watch.
38 KaleidOKaleidOscope July, 2018 CPSEs need to collaborate, share ideas & resources: CEOs’ Conclave
CEOs Conclave 2018 was held at SCOPE Convention Centre, SCOPE Complex, New Delhi on June 25, 2018. It was attended by CMDs and Functional Directors of PSEs. The meeting was called on behest of Chairman, SCOPE. Chairman, SCOPE & CMD, MMTC, Sitting on the dais: Mr. Ved Prakash, Chairman, SCOPE & CMD, MMTC (Centre), Mr. D. K. Hota, Vice Chairman, SCOPE & CMD, BEML (to his Left) and Dr. U. D. Mr. Ved Prakash, Vice Choubey, DG, SCOPE (to his Right). Chairman, SCOPE & CMD, BEML Ltd. Mr. D K Hota and Director General, SCOPE, Dr. U. D. Choubey presided over the conclave.
irector General, SCOPE SCOPE also apprised the par- A team from Aon-Hewitt gave while welcomiong the ticipants about the various ac- a presentation before the Chief Dparticipants, apprised the tivities conducted by SCOPE on Executives deliberating on present about the twin agenda of the line of Government’s initia- five key issues raised by Prime the conclave. Firstly, covering the tives like Make in India, Digital Minister for PSEs viz. Maximizing PM’s Vision for 2022 and the role India, Swachh Bharat as well the geo-strategic reach of PSEs, PSEs need to play. Secondly, to as on Corporate Governance, Minimizing country’s import bill, deliberate on issues within PSEs Financial Communication, RTI, Ways to integrate innovation and that restricts their full potential. Women Empowerment etc. He research in PSEs, Optimal utiliza- Dr. Choubey offered SCOPE’s full further informed that SCOPE tion of CSR Fund, New develop- support in facilitating the con- would be conducting a one week ment model for India by Indian cerns of PSEs. leadership program exclusively PSUs. The text of presentation is Chairman, SCOPE in his address for CEOs of PSEs in collaboration attached at Annexure I. said that issues like autonomy to with University of Maryland, Following the presentation an the board, independent directors, Washington DC. interactive session with Chief interference from outside agen- Vice Chairman, SCOPE while Executives was held where chief cies etc. need to be looked upon addressing the Chief Executives executives from various PSEs pro- to strengthen the functioning of said that the best idea for evolv- vided suggestions for PM’s vision PSEs. He requested Public Sector ing PSEs shall come from cross- and PSEs’ optimal functioning. to come-up with suggestions to fertilisation, collaboration across During the interactive session it tackle the problems. Chairman, the sectoral PSEs. was opined that there are various
Kaleidoscope July, 2018 39 SCOPE News
Left to Right: Mr. Ved Prakash, Chairman, SCOPE, Mr. D. K. Hota, Vice Chairman, SCOPE and Dr. U. D. Choubey, DG, SCOPE addressing the Senior Executives of PSEs. associations across the globe that should be revised. On optimal utilization of CSR represent the organisations of It was also noted that some anon- Fund, it was suggested that PSEs their respective country and pur- ymous complaints are received should look for leveraging the ex- sue their interest. SCOPE should by CBI and action is taken di- isting model and take one theme do the same to pursue the interest rectly. Since CPSEs are well man- a year to focus on a particular of PSEs globally and in turn help aged by professional boards, it CSR project. in maximizing the geo-strategic is proposed that all complaints Issues related to MoU, RTI, reach of PSEs. Speaking on Data should be referred to the CVO of optimal utilization of the lying Analytics & Artificial Intelligence the company, if they are of below surplus and profits, focus on cre- (AI), it was said that no ready in- the board level executive(s). The ation of decentralised employ- puts or database is available for report of CVO should be submit- ment centre were deliberated. facilitating data analytics and AI. ted to the Chief Executive of the The Chief Executives were large- Chairman, SCOPE opined on it enterprise. In case it is against ly of the opinion that PSEs need that SCOPE would be creating the board level functionary, the to collaborate and promote shar- Interactive Knowledge Sharing complaint should be referred to ing of ideas, resources to emerge Portal that would cover- (i) Policy the CVO of the Administrative strong. Issues and (ii) New Developments Ministry who should submit Chairman, SCOPE thanked all the and knowledge sharing. the report to the Secretary of the Chief Executives and Directors. Chief Executives were of the Administrative Ministry. He requested them to send their opinion that in order to provide Appointment and removal of suggestions/recommendations more Autonomy to the Board, CEOs and other relevant issues within a week’s time to DG, DPE Guidelines regarding del- pertaining to lien, appointment SCOPE so that a consolidated egation of power to the Board of of Independent Directors, Size of report could be forwarded to the Directors of PSEs to incur CAPEX the Board were also discussed. Government.
CMDs and Functional Directors of PSEs attending the CEOs' Conclave.
40 KaleidOscope July, 2018 SCOPE News SCOPE Celebrates International Yoga Day
Left to Right: Mr. Ved Prakash, Chairman, SCOPE and Dr. U. D. Choubey, DG, SCOPE addressing the 4th International Yoga Day Celebrations at SCOPE premises.
COPE celebrated the 4th Mr. Ved Prakash, Chairman, Large many employees of SCOPE International Yoga Day at SCOPE said that yoga, meditation and PSUs participated in the Sits premises recently. Mr. and prayer are key to a healthy Yoga Camp. On this occasion, Ved Prakash, Chairman, SCOPE and peaceful living. He informed Yoga Guru Saurabh Samir from & CMD, MMTC and Dr. U.D. that SCOPE has been organizing Munger YogaCentre shared the Choubey, Director General, Annual Yoga Day every year be- benefits of Yoga and also dem- SCOPE highlighted the impor- cause of inspiration from Hon’ble onstrated the Asanas for a happy tance of yoga in day to day life. Prime Minister. and stress free life.
Kaleidoscope July, 2018 41 SCOPE News
Asian Development Bank (ADB) has invited Dr. U.D. Choubey, Director General, Platts Global Energy Awards SCOPE to participate in 2018 has invited Dr. U.D. international panel for Choubey, Director General, discussion on Corporate SCOPE to join prestigious Governance of State Owned panel of judges for selection Enterprises (SOEs). of awardees.
While speaking in Global Environmental Conclave, Dr. U.D. Choubey, Director General, SCOPE pleaded for general awareness, clean technology as well as compromised policy on regulation and industrial activity to protect the environment.
42 KaleidOscope July, 2018 SCOPE News
Conference Facilities at SCOPE Convention Centre
The centrally air-conditioned SCOPE Convention Centre at SCOPE Complex, Lodhi Road, New Delhi provides excellent conference facilities to PSEs, Govt. Departments, Autonomous Bodies, Institutions/NGOs etc. The Auditorium and other Conference Halls are equipped with projector and screen facilities, sound & light control room with recording & P.A. facility, etc. Details of the capacity of the Auditorium and other Halls, which are available on nominal tariff are given below.
Auditorium The chamber having capacity of 92 persons (86 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on dias, tables & podium. Bhabha Chamber
The Auditorium having capacity of 310 persons (300 Chairs + 10 Nos. Chairs at stage) capacity equipped with mikes on dias and podium on stage. Mirza Ghalib Chamber
The chamber having capacity of 44 persons (24 Nos. Chairs on round table and 20 Nos. Chairs on sides) equipped with mikes on dias, tables & podium. Fazal Chamber
The chamber having capacity of 108 persons (102 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on table, dias and podium. Tagore Chamber
The chamber having capacity of 25 persons (15 Nos. Chairs on round table and 10 Nos. Chairs on sides) capacity with board room type sitting arrangement equipped with mikes.
Kaleidoscope July, 2018 43 SCOPE News
Business Centre Annexe II
The Business Centre having capacity of 7 persons The Annexe-II having capacity of 25 Persons. equipped with multi point Video Conferencing System (1+3), at three locations at a time for National Tansen Chamber at UB & International both. Banquet Hall
The Tansen Chamber having capacity of 50 persons having stage and podium. The banquet hall having capacity of 500 Persons for the purpose of lunch & dinner. Sitting arrangement Amir Khusro Chamber at UB could be done for 90 persons. Annexe I
The Amir Khusro Chamber having capacity of 50 The Annexe-I having capacity of 25 Persons. persons having facility of stage and podium.
For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) Mr. Nitin Kulshrastha, Asst. Manager, Engineering (Elect.) Mobile: 9313375238 Mobile: 9313989067 • Email: [email protected] STANDING CONFERENCE OF PUBLIC ENTERPRISES 1st Floor, Core No. 8, SCOPE Complex, Lodhi Road, New Delhi - 110003 Phone: 011-24311747, 011-24360101 • Fax: 011-24361371
44 KaleidOscope July, 2018 SCOPE News
New and Improved Conference Facilities at SCOPE Minar Convention Centre
SCOPE Minar, an architecturally conceived in the form of two high rise curvilinear tower blocks sitting on a four storey circular Podium Block, is strategically located in Laxmi Nagar District Centre, Delhi -110092 and housing around 40 PSEs of repute. It is one of the known buildings of East Delhi. It has a very size Reception Foyer giving ambience look inside the building. There is a green environment all around the SCOPE Minar with large size planters all around. The building is also having state of art Convention Centre, comprising four halls i.e.
Convention Hall
A large sized Convention hall having sitting capacity of 300 del- egates. Various seminars, train- ing programmes, presentations, get togather etc. are conducted in Convention Hall. It provides am- bient and peaceful environment for the programmes.
VIP Lounge
VIP Lounge having sitting ca- pacity of 40 delegates. The ex- ecutives and higher level officers, Directors, CMDs can use it as waiting lounge also.
Kaleidoscope July, 2018 45 SCOPE News
Board Room SCOPE Academy of Public Sector Enterprises
Board room having “U” shaped table, with a sit- SCOPE Academy of Public Sector Enterprises ting capacity of 55 delegates with modern facilities (APSE) conducts induction level programmes for - projector, screen, table mic etc. PSEs executives. It has three training halls, one with capacity of 40 persons and two halls with ca- pacity of 30 persons each for training purpose.
Meeting Hall
Meeting hall having “U” shaped table, with a sitting capacity of 60 delegates. Most widely used for small size meetings and training programmes, group discussion, power point presentations etc.
There is a wide space for vehicle parking that cater for a capacity of 550 cars, including the newly built good quality Banquet Hall wherein 300 delegates can comfortably dine at a time, makes it special to deliver an all- round conducive meeting environment .
For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) (M) 9313375238 and Mr. Shubh Ratna, Dy. GM(Engg.), SCOPE Minar (M) 9873398242, (O) 011-22458176, 22458178 • Email: [email protected] • [email protected]
46 KaleidOscope July, 2018 SCOPE News
Scope Forum of Conciliation and Arbitration (sfca)
SCOPE had set up an Arbitration Cell known as of Supreme Court, High Court, retired Secretaries, SCOPE Fourm of Conciliation and Arbitration Joint Secretaries of Govt. of India , Chief Executives, a(SFCA) mainly to settle disputes between PSUs Directors and senior officials of Govt. of India and its associates . This was inaugurated on 9th and PSEs, besides Advocates and C.As and other January, 2004 by Shri Santosh Gangwar, the then professionals. Hon’ble Minister of State for Heavy Industries, Public Enterprises and Parliamentary Affairs, The Forum has its own infrastructure with a spa- which was attended by the then Secretary, Ministry cious Arbitration Hall having sitting capacity of 15 of Heavy Industries and Public Enterprises, Joint persons with all the modern facilities such as projec- Secretary, DPE, CMDs and other senior officers of tor for live projection of record of proceedings on a Govt. of India and PSUs. large screen with free service of mineral water, tea/ coffee and biscuits. High tea and lunch can also be SFCA has framed its own rules prescribing consoli- arranged by the Forum on request in advance at the dated fee structure and expenses with the assurance cost of the parties by authorised caterer of SCOPE. that arbitration proceedings shall be completed in the shortest possible time and shall be more eco- PSUs are requested to advise the concerned of- nomical in comparison to other institutions. A ficials to avail facilities of the Forum and re- panel of expert Conciliators and Arbitrators has fer cases to SCOPE Forum of Conciliation and also been drawn which consists of retired Judges Arbitration(SFCA).
For further details please contact For booking and tariff details please contact Mr. M.L. Maurya, General Ms. Radhika Mr. S. K. Sharma Manager (Technical) Executive - Legal (SFCA) (M) 9891781484, 24365739 Mobile No.9313375238. (M) 8920574097, 24360559 e-Mail: [email protected] e-Mail: [email protected]
STANDING CONFERENCE OF PUBLIC ENTERPRISES 1st Floor, Core No. 8, SCOPE Complex, Lodhi Road, New Delhi - 110003 Phone: 011-24311747, 011-24360101 • Fax: 011-24361371
Kaleidoscope July, 2018 47 48 KaleidOscope July, 2018 PM dedicates modernized Bhilai Steel Plant to the Nation SAIL completes its modernization and expansion with the dedication
rime Minister Mr. Narendra Modi recently dedicated PSteel Authority of India Ltd.’s (SAIL) modernized and expanded Bhilai Steel Plant to the nation at Bhilai in a mag- nificent function attended bya huge gathering of citizens and dignitaries. With this historic dedication to the nation, SAIL completed its modernization and expansion programme (MO- DEX) which enhances the steel Prime Minister Mr. Narendra Modi at the modernization and expansion programmme of SAIL alongwith Union Minister for Steel, Mr. Chaudhary Biren- making capacity of the Company der Singh, Mr. Raman Singh, Chief Minister, Chhattisgarh, MoS Steel, Mr. Vishnu to 21 MTPA. This momentous oc- Deo Sai, MoS Telecommunications (I/c) Mr. Manoj Sinha and several other casion was witnessed by Union dignitaries. Minister for Steel, Mr. Chaudhary Biren-der Singh, Chief Minister crores. It is my good fortune that an investment of more than of Chhattisgarh Mr. Raman today I have the opportunity to Rs. 18,800 Crore, Bhilai Steel Singh, Union Minister of State for inaugurate this modernized and Plant would now have an en- Steel Mr. Vishnu Deo Sai, Union expanded steel plant. Very few hanced hot metal production Minister of State for Telecomm- people know that most of the rail capacity of 7.5 MTPA from ear- unications, I/c, Mr. Manoj Sinha tracks have been built after the lier 4.7 MTPA, which will be and several other dignitaries. independence, which connect the highest among all steel Before dedicating the new plant the nation from Kutch to Cuttack plants of SAIL. The new Blast to the nation, Prime Minister also and from Kargil to Kanyakumari. Furnace no 8 – Mahamaya - alone visited Bhilai Steel Plant where These tracks are being produced has a capacity to produce 2.8 he witnessed the new and ex- from the offerings of sweat of MTPA. The new Steel Melting panded steel making facilities. yours. Definitely Bhilai has not Shop no. 3 will increase the crude During the Plant visit, Secretary only made steel, also built the steel capacity to 7 MTPA from Steel Dr. Aruna Sharma, Officer lives, decorated the society and earlier 3.9 MTPA and the new on Special Duty, Steel, Mr. Binoy made the country too. We will Bar and Rod Mill will double the Kumar, Chairman SAIL, Mr. also work to strengthen the foun- capacity to 2 MTPA. Apart from PK Singh and CEO, Bhilai Steel dation of New India as steel. In this, SAIL-BSP’s new Universal Plant, Mr. M Ravi were also pres- Bhilai and Durg, you have per- Rail Mill has enhanced total rail ent. Addressing the gathering at sonally experienced that after set- production capacity of SAIL to 2 Bhilai, Mr. Narendra Modi said ting up a steel plant, the picture MTPA. This new plant installed that, “Before coming here today, changed there. Mining of steel with cutting edge technology af- I went to Bhilai Steel Plant, which sector and iron ore has played a ter MODEX will ensure improved has been equipped with more big role in speeding up the prog- productivity, yield quality, cost modern technology and capac- ress of Chhattisgarh.” competitiveness, energy efficien- ity with expenditure of Rs 18000 Modernized and expanded with cy and environmental protection.
Kaleidoscope July, 2018 49 50 KaleidOscope July, 2018 India Gifts HAL Do-228 Aircraft to Seychelles: Yet another feather in HAL's cap
of India in further developing, Rajendra Singh, Indian Coast consolidating and expanding Guard, received the contract the comprehensive multifaceted documents from Mr. T. Suvarna cooperation between India and Raju, CMD, HAL during the Seychelles”. Mrs Swaraj also event held to mark the occasion. handed over airworthiness certifi- Speaking on the occasion, Mr. cate of the aircraft to the President Raju said for the first time, HAL of Seychelles. General (Dr) V K has entered into a contract with Singh (Retd) Union Minister of ICG that includes Performance State for External Affairs, who Based Logistics (PBL) support af- Dornier Handover was present on the occasion, ter the delivery of Helicopters for handed over the symbolic key to five years. Already, HAL’s ALH xternal Affairs Minister the President of Seychelles. Dhruv Helicopters have been Ms. Sushma Swaraj hand- Mr. T Suvarna Raju, CMD, HAL extensively deployed by ICG for ed over HAL Do- 228 air- in his welcome address hailed the various roles such as Search and E Rescue (SAR), casualty evacua- craft to the President, Republic of event as `proud moment’ for HAL Seychelles, Mr. Danny Faure at a as the aircraft has been delivered tion, armed patrol, coastal sur- ceremony in New Delhi recently. ahead of schedule and accepted veillance, VIP movement and the With this, the Maritime surveil- by the Seychelles Air Force. “We night SAR, he added. lance of the island nation received have provided hands-on training Mr. Raju said that the order re- the much needed boost. to the pilots and technical staff flects the trust on HAL’s capa- from Seychelles. We are commit- Appreciating India’s support, Mr. bilities and gives an impetus to ted to extend full-fledged sup- Faure described the `momentous Make-in-India campaign. It re- port to the teams involved with occasion’ as historical day and poses faith of the Indian Defence its maintenance and operations said the inclusion of HAL Do- Forces in indigenous ALH which of the aircraft”, he added. Vice 228 aircraft would bolster the has been serving them with dis- Admiral G. Ashok Kumar, DCNS, coastal surveillance of Seychelles tinction for a long time. Senior officials from Seychelles, and provide strategic depth to The certified helicopter deliver- MEA, MOD and HAL were pres- policing its extensive Exclusive ies are scheduled to commence ent on the occasion. Economic Zone (EEZ). The air- from 2020 onwards. HAL had craft has come at the right time Maiden Ground Run of First Green signed a contract worth around and would be flown on the forth- ALH Dhruv Mk-III for Coast Guard Rs. 5126 crore for supply of 16 coming 42ndIndependence Day Held; First Time A Contract with ALHs (Fixed Wheel) to Indian of Seychelles on June 29, signify- ICG on PBL Support Coast Guard(ICG) in five year ing the strong relations between The first green helicopter - ear timeframe in March 2017 to the two countries. marked for Indian Coast Guard boost the Low Intensity Maritime Describing the event yet another has completed its build with in- Operations (LIMO) and Coast milestone in furthering bilateral stallation of basic systems and Security capabilities. defence cooperation between had a successful maiden ground The first ALH Dhruv squad- India and Seychelles, Ms. Swaraj run recently. It was handed over ron of Indian Coast Guard was said, “The handing over of HAL to the Rotary Wing R&D Centre, commissioned in March 2002 Do 228 to Seychelles reflects the a design house of HAL for inte- with its operational base at firm commitment and continued gration and certification of 19 Indian Coast Guard Air Enclave engagement of the Government new systems. Director General (ICGAE), Goa.
Kaleidoscope July, 2018 51 52 KaleidOscope July, 2018 Minister for Railways, Coal, Finance & Company Affairs dedicates NLCIL’s Three 100 MW Solar Power Projects at various places in Tamil Nadu to the Nation
r. Piyush Goyal, Mini- ster for Railways, Coal, MFinance & Company Affairs recently inaugurated 300 MW Solar Power Projects erected at Virudhunagar and Tirunelveli Districts. It was declared for com- mercial operation and dedicated these projects to the Nation. The Solar Power projects erect- ed at Thoppalaakkarai and Sethupuram in Virudhunagar District and Sellaiya Sezhiyanallur in Tirunelveli District, with an in- stalled capacity of 100 MW each were dedicated to the Nation Mr. Piyush Goyal, Minister for Railways, Coal, Finance & Company Affairs in by the Minister, Mr. Piyush the presence of Dr. S. K. Acharya, CMD, NLCIL and Mr. Rakesh Kumar Director Goyal. These projects were ere- (Finance) dedicating NLCIL’s Three 100 MW Solar Power Projects at various places cted at a cost of Rs. 1,302/- Cr. in Tamil Nadu state to the Nation at Neyveli. which includes Operation and Maintenance cost for 15 Years. The lauding the CSR initiatives of Neyveli and Dr. S. Ganesan, Regi- power produced from these units the organization, appealed man- strar, Anna University, Chennai. are given to Tamilnadu Power agement to come up with new This signing was made to erect Generation and Distribution Co- innovative initiatives like pro- a pilot project on solar drying mpany (TANGEDCO) at a cost of viding Free wifi to the rural of lignite, in order to increase its Rs. 4.41/- per unit. masses, low cost sanitary nap- Caloric Value from 2700 Kcal to Mr. Piyush Goyal in his inaugu- kins for women and emotion- 4350 Kcal. The cost of the pilot ral address lauded the efforts of ally empowering deprived senior project is Rs.2 Crore 69 Lakhs. NLCIL Management , Employees citizens to ensure technologically, In this function, Dr. Sarath and trade unions for their un- hygienically and culturally moti- Kumar Acharya, CMD/NLCIL, stinting efforts for the growth of vated society. Mr. Rakesh Kumar, Director organization with a new vision. After this, A Memorandum of (Finance), Mr. Subir Das, Director He appealed all employees to Understanding by NLCIL and (Mines), Mr. V. Thangapandian, keep more strength and strive for Anna University was signed in Director (Power), Mr. R. Vikra- the growth of the company with the presence of Minister, CMD man, Director (HR), Mr. Nathella new vision to realize the New and other functional directors of Nagamohana Rao, Special Project India, which empowers the peo- NLCIL. This MOU was signed Officer/NLCIL, Dr. Soorappa, ple of the nation to take care the by Dr. V. Manoharan, General Vice Chancellor, Anna University, future generations. Manager/Centre for Applied Res- Senior Officials and employees Mr. Piyush Goyal while earch & Development, NLCIL, from NLCIL were present.
Kaleidoscope July, 2018 53 54 KaleidOscope July, 2018 AAI and Indian Navy collabo- Inauguration rate to enhance the Safety, of Pump Test Efficiency and Airport Capacity Bed Facility by at Goa International Airport GRSE
Rear Admiral V. K. Saxena, IN (Retd.), CMD,GRSE alongwith other senior officials at the inauguration of Pump Test Besd Facility. Inauguration of GAGAN - INRES (at new site at Goa Airport) by Mr. A. K. Dutta, Member (Air Navigation Services). ooking at huge business prospects, Garden Reach Shipbuilders and Engine- ontinuing with its con- control of Indian Navy ATC. L ers Limited (GRSE) has set-up stant endeavour to ensure Mr. A.K. Dutta, Member (Air a Pump Test Bed Facility at its Chighest level of safety, Navigation Services)and team of Taratala Unit and the same was operational efficiency and - air senior officials from Corporate Inaugurated and Commissioned port capacity, AAI has decided to Headquarters, Airport Authority by Rear Admiral V. K. Saxena, augment the existing Air Traffic of India discussed various op- IN (Retd.), CMD,GRSE recently Control facilities of Indian Navy erational issues with the Indian the presence of Mr. S. S. Dogra, at Dabolim Airport, Goa which Navy enhance safety, operation- Director(Finance), Mr. A. K. includes provision of real time al efficiency and airport capac- Nanda, Director (Personnel) & data of air traffic operating in the ity at Goa International Airport Cmde Sanjeev Nayyar, Director airspace adjoining Goa airspace. recently. (Shipbuilding) and other senior The real time processed data of In addition to multiple RADAR officials of the Company. multiple ATC RADAR feeds from Data feed from Mumbai, AAI is This Test Bed has the capability to Mumbai ATC Automation system also in the process of installing undertake trials of 30 pumps in a will be transported to Navy ATC a Next Generation Surveillance month. During the inauguration through dedicated high speed System, ADS-B (Automated speech, C&MD added that, the data link and it will be displayed Dependent Surveillance-Broad- new facility has a testing capabil- to Navy ATC Officers at Goa. This cast), at Goa Airport. The ity of a varied range of pumps in air traffic situational data display ADS-B data also will be pro- terms of discharge capacity and in Navy ATC Tower will provide cessed in Mumbai ATC sys- head, which are ranging from 5 to a complete details of inbound, tem and in case of failure of 800 Cubic Meter Per Hour and up- outbound flights operating to Goa RADARs, the ADS-B data will to 12 Kg Per Square Centimeter of as well as en-route flights under still be available to Navy ATC. discharge head respectively.
Kaleidoscope July, 2018 55 56 KaleidOscope July, 2018 Raksha Mantri inaugurates 16 MW Solar Power Plant set up by BEL at HVF, Avadi
he Raksha Mantri, Smt Nirmala Sitharaman, re- Tcently inaugurated a 16 MW grid-connected Solar Power Plant set up by Bharat Electronics Limited (BEL) at Heavy Vehicle Factory (HVF), Avadi. Mr. M. V. Gowtama, CMD, BEL, was also present on the occasion. This is one among many green initia- tives undertaken by BEL. BEL is establishing energy se- curity for the Ordnance Factory Estates under the Viability Gap Funding (VGF) Scheme by setting The Raksha Mantri, Smt Nirmala Sitharaman, speaking at the inauguration of the up utility scale grid-connected 16 MW grid-connected Solar Power Plant set up by BEL at Heavy Vehicle Factory Solar Power Plants. As part of (HVF), Avadi, recently. Mr M V Gowtama, CMD, BEL; Mr P K Shrivastava, Member this, a 16 MW (AC) Power Plant, (AVHQ), OFB; and Mr Satish Gupta, CFO, Tata Solar Power, were also present. developed in around 80 acres of land, has been set up at an ap- proximate cost of Rs.105 Cr for annual savings of Rs. 45.41 mil- regular basis. the annual captive consump- lion for both, HVF and EFA. The solar power plant will lead to tion of HVF & Engine Factory This project undertaken by BEL is reduction of SO2, NO2 and par- (EFA), Avadi, around 25 km from generating employment for pro- ticulate matter (pm) emissions Chennai, Tamil Nadu. The plant fessional, skilled and unskilled resulting in improvement in air will inject power at 110 kV to labour. In addition, various kinds quality and human health. The TANTRANSCO’s 110 kV Sub- of maintenance work will also Carbon Dioxide avoided due to Station located around 2.5 km generate employment opportuni- this Solar Power Plant would be away and is expected to result in ties for the local population on a around 26,384 tons/annum.
IREDA’S Success In Masala Space REDA has been honored with the UK-India Deal of the Year Award by India Inc. in London recently during the 2ndUK-INDIA IConclave. The recognition is bestowed to IREDA being the first issuer of green Climate Bonds Certified and Investment Grade rated bond by a financial institution. The bond was nearly two times over- subscribed – the highest in the masala space in 2017 – emphasizing the continued importance of the UK’s capital markets for India’s rap- id growth ambitions.The award was received by Mr. S K Bhargava, Director (Finance), IREDA. Issuances through Masala Bonds confirms investors’ acceptance for IREDA in the global market.
Kaleidoscope July, 2018 57 58 KaleidOscope July, 2018 Awards & Accolades to PSEs NALCO bags Kalinga CSR Award CMD NCL, Mr. P.K.Sinha, the Director (Technical/ Operations) Mr. Gunadhar Pandey and the Director National Aluminium Company Limited has bagged (Technical/Project & Planning) Mr. P.M.Prasad con- the Kalinga CSR Award-2017. The company was gratulated Team NCL and expressed hope that the conferred this award in recognition to its Best CSR team will keep the good work up by achieving in- Activities for Sustainable Development. The award clusive growth years after years. was given away during the third National Seminar on ‘Corporate Social Responsibility Initiatives-2018 Notably, Singrauli Woman Small Holders Poultry (Evaluating Sustainable Development)’ held in Producers Project is a CSR initiative of NCL under Bhubaneshwar recently. which the company gives full fledged poultry farm units to tribal women living in villages in and around operational area of NCL. The women are also pro- vided with necessary training and paraphernalia to run the poultry. The project, which is being run in collaboration with District Administration, has ben- efited 300 tribal women by far. Going by the grand success of the project in meeting objectives, the proj- ect further aims at mainstreaming 200 more tribal women in near future.
NMDC receives Best Financial Dr. Tapan Kumar Chand, CMD, NALCO receiving the award from Mr. Prafulla Samal, Minister, Dept. of MSME, SSEPD Performing PSE Award and Women and Child Development Govt. of Odisha.
The award was given by Mr. Prafulla Samal, Minister, Dept. of MSME, SSEPD and Women & Child Development, Govt of Odisha, in the presence of Dr. Tapan Kumar Chand, CMD, NALCO. On behalf of NALCO, Mr. S.K. Behera, AGM(Administration & CSR) and Mr. C.R. Bisoi, Sr. Manager (CSR), re- ceived the award. The seminar was organized by Institute of Quality & Environment Management Services, Institute of Public Enterprise, Hyderabad Mr. A.K. Padhy, GM (Finance) and Mr. P. Jaya Prakash, DGM and HR Solution. On this achievement, CMD Dr. (CC) receiving the award from Mr. Dharmendra Pradhan, Chand congratulated the NALCO Collective and MoP&NG and Skill Development & Entrepreneurship. the CSR arm NALCO Foundation for their dedicat- For its financial excellence, NMDC received ed effort to make NALCO’s CSR effective. Hindustan Ratan Award in the category of Best Financial Performing PSE. Mr. A.K. Padhy, General NCL Bags ‘Apex India CSR Manager (Finance) and Mr. P. Jaya Prakash, Deputy General Manager (Corporate Communication) re- Excellence Award’ ceived the award on behalf of NMDC from Mr. Northern Coalfields Ltd. bagged ‘Apex India CSR Dharmendra Pradhan, Minister of Petroleum & Excellence’ Award for achievements in fulfilling its Natural Gas, Skill Development & Entrepreneurship Corporate Social Responsibility (CSR). The award at a function held at New Delhi recently. This award has been conferred on the company for successful- is for strong financial performance, recognizing its ly setting up poultry farm units in villages nearby profits and huge dividend payout to shareholders and helping tribal women achieve self reliance. including Government of India.
Kaleidoscope July, 2018 59 60 KaleidOscope July, 2018 PSEs Take Lead in CSR Activities
MCL donates 80 units blood to working extensively with local communities to- wards welfare of neighboring villages and schools VIMSAR under CSR. Mahanadi Coalfields Limited (MCL) organised a The New R.O plant was inaugurated by Dr. S. K. blood donation camp at MCL Anand Vihar Hospital Acharya, CMD, NLCIL besides Samundi Building and donated 80 units of blood to VIMSAR, the big- at Isha Foundation in the presence of Sadhguru gest healthcare institute in Western Odisha. Jaggi Vasudev, Founder Isha Foundation and Mr. R. Vikraman, Director (HR),NLCIL. The newly inau- gurated RO Water Plant in Isha Foundation enables devotees to avail purified water for drinking. This modern water purifying plant costing Rs. 22 lakh of rupees can purify 2000 ltrs. of water in an hour.
Blood donation camp at MCL.
Employees and their dependents at MCL headquar- ters led by Mr. L. N. Mishra, Director (Personnel) recently participated in the blood donation camp organised by MCL Medical Services in association Dr. Sarat Kumar Acharya, CMD, NLCIL inaugurating custo- with Blood Transfusion department of VIMSAR. mized RO Plant of 2000 LPH Capacity besides Samundi Employees and family members participated in Building, Isha Foundation, Coimbatore in the presence of the blood donation camp. Dr. Debashish Gupta, Sadhguru Jaggi Vasudev, Founder Isha Foundation and Mr. Chief of Medical Services/In-charge Anand Vihar R. Vikraman, Director (HR), NLCI. Hospital himself donated blood. MCL Medical Services organises healthcare, free medical check- The devotees of Isha Foundation appreciated up and blood donation camps across its command NLCIL’s good gesture in providing RO plant and area spread over in Sundergarh, Jharsuguda, Angul contribution towards the overall welfare of the so- and Sambalpur districts of Odisha. ciety at large. Mr. R. Mohan, CGM, CSR, Edn.& Sports, officials of NLC India ltd, representatives of the foundation and many Isha volunteers par- CMD, NLCIL inaugurates ticipated in the function. Earlier, NLCIL manage- Specialized R.O plant at Isha ment under its CSR initiatives revitalized Kurichi Lake, which is a prime ground water enhancer of Foundation, Coimbatore the area at Coimbatore by desilting & deepening of NLC India Ltd. under its CSR endeavors provided 280 Acres of the lake area at a cost of Rs.1.32 Crs. customized RO Plant of 2000 Liter. Per Hour (LPH) NLCIL desilted about 3.40 lakhs cubic meters (1.2 Capacity to Isha Foundation at Coimbatore recent- cr. cubic feet) of sand to augment the storage capac- ly. NLCIL undertakes CSR in the fields of environ- ity of the lake by 34 cr. litres in addition to the ear- ment, health, education and skill Development etc., lier capacity.
Kaleidoscope July, 2018 61 62 KaleidOscope July, 2018 Inauguration of PFC Composter MoA signed between Machine in Kalkaji Mandir premises PFC and SDMC on the occasion of Ministry of Power’s ongoing Swachhta Pakhwada
Mr. Narendra Chawla, Mayor, SDMC, Ms. Shikha Rai, Chair- person, Standing Committee, SDMC, Dr. Puneet Goel IAS, Commissioner, SDMC and Mr. Rajeev Sharma, CMD, PFC during the MoA signing ceremony. Mr. Ajay Bhalla, Secretary (Power) inaugurating the PFC Composter Machine in the presence of CMD, PFC, Mr. Power Finance Corporation Limited (PFC), through Rajeev Sharma. its CSR&SD initiatives, has been undertaking proj- ects for improving the quality of life of the soci- In yet another initiative taken during the recent- ety at large since 2010. PFC’s CSR activities span a ly held Swachhta Pakhwada, under the aegis of wide range of areas from Education to Sanitation Ministry of Power, Power Finance Corporation has and Renewable Energy to Healthcare across dif- installed a Composter Machine in Kalkaji Mandir. ferent parts of India. In continuation of its efforts The Bio-waste decomposing machine was inaugu- towards sustainable future, PFC has signed a MoA rated by Mr. Ajay Bhalla, Secretary (Power), Govt. with South Delhi Municipal Corporation (SDMC) of India in the presence of CMD, PFC, Mr. Rajeev for setting up of a CNG crematorium in Delhi un- Sharma, senior officials of MCD, PFC and pundits der its CSR initiatives.Under this project total 4 of the Temple administration. The 500 kg Schnell CNG crematoria will be built at Dwarka Sector Composter is a fully automated machine which 24 and Subhash Nagar, Delhi with financial assis- transforms wet waste into organic compost in 24 tance of Rs 4.55 Cr from PFC. The Memorandum of hrs. The entire operation is fully automatic, noise Agreement was signed during ongoing observance free, odour free and does not generate any harmful of SwachhataPakwadaat Civic centre, MCD office gases or by products. The worship place is expected Delhi, in the presence of Mr. Narendra Chawla, to become free from litters and other waste materi- Mayor – SDMC, Ms. Shikha Rai, Chairperson, als. Swachhta Pakhwada 2018 was observed recent- Standing Committee, SDMC, Dr. Puneet Goel IAS, ly. This is the second installation of the machineby Commissioner – SDMC and Mr. Rajeev Sharma, PFC. Earlier, this week; a similar bio waste machine CMD – PFC. Directors and Sr officials of PFC and was also installed at Urjanidhi premises. SDMC also graced the occasion. NTC Signs MoU with Ministry of Textiles “National Textile Corporation (NTC) signed a Memorandum of Understanding with Ministry of Textiles for setting out various financial and phys- ical targets for the financial year 2018-19. The MoU was signed by Mr. Anant Kumar Singh, IAS, Secretary (Textiles), Government of India and Mr. Sanjay Rastogi, IAS, CMD, NTC Ltd. recently in the presence of senior officials of the Ministry of Textiles and NTC Ltd. in New Delhi.”
Kaleidoscope July, 2018 63
Aluminium Consumption in Kenyan India to triple by 2030: Delegation Dr. Chand in Mumbai Road Show visit to MDL
Dr. Tapan Kumar Chand, CMD, NALCO at the Mumbai Road Show organized by NALCO.
iming to increase its foot- about NALCO’s roadmap, Dr. hold in the Aluminium Chand added, ‘’NALCO shall be industry, NALCO, orga- adopting the latest technology A Cmde Rakesh Anand, CMD, Mazagon nized a Meet of customers and for its upcoming Smelter plant vendors in the Western region in which will result in more than Dock Shipbuilders Ltd presenting a Mumbai. Addressing the large two fold increase in productiv- Crest of MDL to Ms Raychelle Omamo, Cabinet Secretary (Defence), Kenya. gathering in the financial capital, ity. Our new business model Dr. Tapan Kumar Chand, CMD, and upcoming projects like ex- s Raychelle Omamo, NALCO, said, ‘’Consumption of pansion of Alumina Refinery at Cabinet Secretary of Aluminium in India will see a Damanjodi, brownfield expan- Defence, Kenya along quantum jump by 2030 and the sion of Smelter, caustic soda M with her team visited Mazagon country has to enhance its pro- plant at Gujarat etc, will help Dock Shipbuilders Ltd. recent- duction to meet the demand. ‘’ the Company’s growth momen- ly. She was received by Cmde The Meet with customers and tum.’’ Dr. Chand also provided Rakesh Anand, CMD, MDL. vendors of western region is one an overview about the global among a series of meets planned Aluminium sector and stressed The delegation was shown the across the country. that the internals of NALCO yard facilities including under Dr. Chand thanked the loyal base are strong enough to withstand construction ship, modernisation of customers and vendors for fluctuations in the business en- project, heritage gallery etc. A standing by NALCO through vironment. Dr. Chand said that detailed presentation exhibiting thick and thin and said that India the smart cities coming up in the MDL’s capabilities was also made will have more than double of country will be green cities and to the delegation. Aluminium will be in high de- the existing Aluminium con- The Cabinet Secretary of Defe- sumption per person per year mand in future. Also, concepts nce, Kenya was extremely im- by 2030. ‘’Loyalty of NALCO’s like high speed trains will use pressed with the facilities and Customers and suppliers is one large amount of Aluminium. professionalism of the workforce of the drivers of our success,’’ Dr. T. K. Chand was also felici- said Dr. Chand. It may be noted tated by the customers and ven- at MDL and conveyed her appre- NALCO has registered one of dors during the Meet. Amongst ciation for the highly informative its strongest performances in others, Mr. P. K. Mishra, Director briefing and impressive accom- 2017-18, clocking more than 100 (Commercial) addressed the plishments of the yard over the percent growth i.e., Rs. 1342.19 Meet while Mr. S. Samantray, years and expressed keenness cr. against Rs. 669 cr. in previous ED (Marketing) welcomed the to have business partnership year. Appraising the gathering delegates. with MDL.
Kaleidoscope July, 2018 65 WAPCOS observes “My Tree c<+rsgkFk] lqUnj Hkfo"; dh vksj”– Plant Tree, Save Life
APCOS Ltd. celebrated its 50th Founda- tion Day on recently. In commemo- Wration of this historic occasion, the Company observed “My Tree c<+rsgkFk] lqUnj Hkfo’; dh vksj” – Plant Tree, Save Life recently at Bhagwan Mahvir Vansthali Park, Central Ridge Reserve Forest, New Delhi, and all its offices across India and 45 Countries, as a pre event to the 50th Foundation Day. Dr. Satya Pal Singh, Minister of State for Human Resource Development and Water Resources, River Development & Ganga Rejuvena-tion was the Chief Guest. Mr. U. P. Singh, Secretary, Ministry of Water Resources was also present on the occasion. More than 1500 trees were planted by WAPCOS Family across India and all its offices abroad. WAPCOS is a technology driven consultancy and EPC Dr. Satya Pal Singh, Minister of State for Human organization with strong global presence in the fields of Resource Development and Water Resources, River Water, Power and Infrastructure Sectors. WAPCOS has Development & Ganga Rejuvenation planting a tree successfully completed/on-going consultancy assign- with Mr. R. K. Gupta, CMD, WAPCOS in the presence of Mr. U.P. Singh, Secretary, Ministry of Water Resources, ments in countries covering Asia, Africa, Middle East, River Development & Ganga Rejuvenation. WAPCOS South America and Pacific Island and is operating in celebrated its 50th Foundation Day on 26th June, 2018. more than 45 Countries, at present.
PFC sanctions Rs.10,218 Cr. to RRVUNL
ower Finance Corporation Ltd. (PFC) has extended ad- ditional financial assistance to Rajasthan Rajya Vidyut PUtpadan Nigam Ltd.(RRVUNL) to support their efforts to comply with the new emission norms of MoE&F. This fi- nancial assistance totaling to Rs.2626 cr. is mainly for installa- tion of Flue Gas Desulphurization Plant (FGD) and Selective Catalytic Reactor (SCR) as part of environmental up-gradation works at ongoing Super-critical thermal power projects at Suratgarhand Chhabra having a capacity of 2x660 MW each. With this assistance,the cumulative sanction of PFC for above two projects amounts to Rs.10,218 cr. The loan documents for the additional financial assistance with PFC were executed Mr. Rajeev Sharma, CMD, PFC and Mr. N. K. recently at PFC’s Office in New Delhi in the presence of Mr. Kothari, CMD, RRVUNL exchanging the MoU Rajeev Sharma, CMD, PFC, Mr. N.K. Kothari, CMD, RRVUNL Documents. and other Senior Officials of both the organizations.
66 KaleidOscope July, 2018 SAIL steel for world’s tallest girder rail bridge, India’s longest tunnel teel Authority of India Ltd at Durgapur, IISCO, Rourkela (SAIL) has supplied around and Bokaro steel plants. S60,000 tonnes of steel mate- The project involves the con- rial for the 111-km-long Jiribam- struction of 111-km long broad Tupul-Imphal new broad gauge gauge railway line which in- railway project. The project was cludes 9 stations along the taken up in 2008 and was declared way at Dolakhal, Kaimai Road, a National Project. Northeast Kambiron, Thingou, Khongsang, Frontier Railway (NFR) is un- NoneyTupul, Haochang Road dertaking the construction of the and Imphal, 148 bridges & 45 tun- project in Manipur, India. nels (of which Tunnel No. 12 is 11.55-km long, making it India’s SAIL has supplied mainly TMT longest tunnel). rebars and Structurals along with In addition to this, a bridge is HR Plates and Sheets, Plate Mill Jeribam-Tupul Imphal broad gauge being constructed near Noney Plates, etc. for this project, which railway project. bears the distinction of having in which will become the tallest its ambit construction of not only girder rail bridge in the world. At involves the construction of 84 India’s longest tunnel but also the 141 metres, the bridge over river kms of railway line connecting tallest girder rail bridge in the Iringriver will be as high as two Jiribam to Tupul which is on the world. SAIL’s Branch Sales Office QutubMinars stacked on top of verge of completion. The second at Guwahati has been supplying each other. section of 27 kms connecting the materials which are produced The project is being developed Tupul to Imphal is expected to be from its state-of-the-art new mills in two sections. The first section completed by 2019. Personalia
Mr. K. Alagesan Mr. Yatish Kumar Mr. Manoj Jain Mr. Suraj Prakash takes over assumes charge as CMD, assumes charge as Director is appointed as Director as CMD ITI Limited. Braithwaite & Co. Ltd. (Business Development), GAIL. (Finance), BEML.
Mr. Sanajy Kumar Mr. Arup Chatterjee Mr. Nadella Naga Mr. Aashish Sinha is appointed as Director takes over as Maheswar Rao takes over as (Network Planning & Director Engineering takes charges as Director Director, Central Bank Marketing), RAILTEL. (R&D), HAL. (Planning & Projects) of NLCIL. of India.
Kaleidoscope July, 2018 67 President felicitates students from CSR initiative ‘GAIL Utkarsh’ who cleared JEE IIT Advanced exam 99 out of 100 students clear JEE Main this year 52 qualify JEE advanced all students from underprivileged sections of society
resident of India Mr. Ram are from the ninth batch of ‘GAIL of 100 students qualified in JEE Nath Kovind recently fe- Utkarsh’, were provided one year Main, out of which 52 students Plicitated students from of free residential coaching un- qualified in IIT Advance, includ- underprivileged sections of so- der this CSR project. GAIL was ing six girls. ciety who cleared the JEE IIT the first PSU to start the coach- The students are selected on the Advance 2018 examination after ing centre at Kanpur for talented basis of written test, interview intensive coaching under GAIL but underprivileged students in and strict economic criteria. Most (India) Limited’s Corporate Social 2009-10. Conducted in partner- of them come from rural back- Responsibility initiative ‘GAIL ship with CSRL, ‘GAIL Utkarsh’ ground and their parents have Utkarsh’. The felicitation pro- started with just 23 students, small sources of income. They gramme was held at the Indian which expanded to 100 students cannot afford to pay costly fees Institute of Technology (IIT) cam- from 2011-12. Since its inception, of private institutes. So far, more pus. Also present on the occa- 679 students were enrolled in the than 150 students have got job sion were GAIL officiating CMD, initiative, out of which 591 se- placements in reputed compa- Dr. Ashutosh Karnatak and cured admission in IITs/NITs and nies, thus completing the ‘Process Center for Social Responsibility other reputed engineering col- of Transformation’ for them. and Leadership (CSRL) Director leges. The success rate of the proj- Mr. S. K. Shahi. The students, who ect is 87 percent. This year, 99 out
HCL Results for the Year Ended March 31, 2018
he audited financial result fiscal year, the profit before tax last year. Considering the capex of Hindustan Copper Ltd. has registered 29 percent growth requirement in the coming years, T(HCL) for the financial to Rs. 122 cr. from Rs. 94 cr. in the Board declared dividend to year 2017-18 was approved by its the FY 2016-17. While revenue its shareholders at the rate 30 per- Board of Directors in the meet- from operations (Gross) has reg- cent of the Profit After Tax from ing held on recently. During the istered a growth of 31 percent, continuing and discontinuing year the financial performance it was Rs. 1720 cr. compared to operation. Capex expenditure in of the Company has improved Rs. 1311 cr. in the previous year. FY’18 has increased significantly substantially on the face of strong EBDITA earnings were Rs. 308 to Rs. 590 cr. from Rs. 401 cr. in performance in first three quar- cr. compared to Rs. 246 cr. in the the previous year, thus register- ters compared to last year. In the previous year. The copper sales ing a growth of 47 percent. This fourth quarter, though the pro- volume in FY’18 has increased by year the target of capex has been duction was better than the - cor 26 percent to 36435 tonnes com- set at Rs. 700 cr. responding period of last year, pared to 28,888 tonnes in the last With the Government’s in- the sales realization has cooled fiscal year and was the best in creased focus on infrastructure, down due to unfavorable market last seven years. Copper cathode construction and manufactur- conditions, and since then, it has production during FY’18 was 39 ing sectors and renewal energy, improved and will be reflecting percent higher than the last year. the Company is confident that it in subsequent quarters of cur- Metal-in-Concentrate production shall generate greater demand for rent fiscal year. During 2017-18 was 4 percent higher than the Copper in domestic market.
68 KaleidOKaleidOscope July, 2018 PSEs Celebrates 4th International Yoga Day
NMDC celebrates 4th Ku. Nagaveni and Mr. Surendra demonstrated Asanas and Pranayam which was followed by em- International Yoga Day ployees. Employees actively involved adnd prac- Rededicates itself to the ticed Yoga Aasanas and Pranayam Kriya. Similarly with much enthusiasm the Yoga sessions were or- National Mission in its Diamond ganized in all NMDC projects and outstation offices Jubilee Year where employees, their families and common citi- zen took part.
4th International Yoga Day celebration at PDIL
Yoga Day celebration at NMDC.
MDC Ltd. joined world-wide celebration of 4th International Yoga day recently at Nits Head Office and in all its Production Projects viz., Kirandul, Bacheli, Donimalai , Panna International Yoga Day Celebration at PDIL. and outstation offices with synergy and enthusiasm in promoting Healthy India and to create a greater Projects and Development India Limited (PDIL), level of consciousness for Yoga which brings about celebrated the 4th International Yoga Day at PDIL good health among employees and positively Bhawan, Noida, Vadodara and Sindri. Mr. D. S. change the lifestyle, with a national theme on IDY Sudhakar Ramaiah, D(F) and CMD PDIL, thanked 2018- “Yoga for peace”. PM Mr. Narendra Modi for getting recognition for Mr. Sandeep Tula, Director (Personnel) motivated Yoga at International platform. He also advised the employees by their active participation in Yoga all PDIL employees to do Yoga daily for leading a Exercises spreading a message that “Yoga and healthy life. The event was conducted as per the Meditation helps to live a stress free healthy life and Common Yoga Protocol, issued by Ministry of these should be practiced as a part of our life”. Ayush, wherein a brief introduction about Yoga The company, in association with Vivekananda was given, Prayers alongwith asanas with standing Kendra Kanyakumari, organized a practical and sitting postures were performed. At the end, demonstration of common protocols of yoga at all PDIL officials and other participants took oath Khanij Bhawan Building, where in Yoga Teacher Mr. of committing to make themselves into a healthy, G. Srinivas, Head, Vivekananda Yoga Anusandhan peaceful, joyful and a loving human being by mak- Samsthan, Hyderabad along with two trainers ing yoga a part of their life.
Kaleidoscope July, 2018 69 AAI and IATA celebrate “International Yoga Day” at IATA Regional Training Centre at Madrid, Spain
CMD, BDL Mr. V. Udaya Bhaskar, Mr. S. Piramanayagam, Director (Finance) alongwith employees of the Company during a yoga session at BDL Corporate Office to mark the 4th International Yoga day celebrations. officials and employees of the Company participat- ed in the celebrations.
BEL celebrates International Officials of Airports Authority of India and International Yoga Day Air Transport Association (IATA) during celebration of International Yoga Day at IATA Regional Training Centre, Madrid, Spain.
A group of officers from Airports Authority of India who are visiting International Air Transport Association’s (IATA) Regional Training Centre at Madrid for a Workshop on SKYREV360- a com- prehensive data gathering, invoicing and realisa- tion system jointly organised an event with the International Air Transport Association (IATA)to commemorate International Yoga Day. Participants Employees and senior officers of BEL’s Bangalore Complex from Airports Authority of India shared their expe- perform Yogasanas to celebrate International Yoga Day. riences with officials of IATA about Yoga. More than 1,800 employees, trainees and volunteers During the event, a brief session on breathing exer- of BEL joined in front of the Bangalore complex to cises was conducted in which officials from AAI & celebrate the spirit of International Yoga Day 2018 IATA participated. at the crack of dawn today. Donning special blue T-shirts which were distributed on the occasion, International Yoga Day employees and senior officers enthusiastically par- ticipated in the mega event performing various observed at BDL Yogasanas and doing Pranayama along with the The 4th International Yoga Day was celebrated at all Chairman & Managing Director Mr. Gowtama M. the units of Bharat Dynamics Limited (BDL) with V., Mr. Nataraj Krishnappa, Director (Other Units) lot of enthusiasm and fervor. A lecture followed by and Mr. Koshy Alexander, Director (Finance). demonstration of ‘asanaas’ were presented by yoga The participants were guided by qualified Yoga experts. Speaking on the occasion, Mr. V. Udaya practitioners of the Company. Mr. Gowtama M. Bhaskar, CMD, BDL underlined the need of Yoga V., CMD, in his inaugural speech emphasised the in one’s life and urged employees of the Company importance of practicing Yoga in daily life, point- to make yoga a routine activity in their daily life. ing out that a “healthy employee contributes to the Mr. S. Piramanayagam, Director (Finance), Mr. G. prosperity of the Company as well as and the na- Gurudatta Prasad, Director (Production), Mr. K. tion”. The programme was organised as per the di- Divakar, Director (Technical) along with senior rectives of the Ayush Manthralaya, Government of
70 KaleidOscope July, 2018 India, under the supervision of Mr. Shivakumaran Introduction on Yoga was given by Mr. A. V. K. M., GM (HR)/BEL-Bangalore. The Corporate Ramana, Chairman (i/c) and demonstration by Office of BEL at Bengaluru celebrated the day with a Yogacharya V. S. Sudheer and team. 2-hour Yoga session conducted by the Art of Living Foundation. 4th International Day of Yoga Observance of International observed by HUDCO Yoga Day By BEML
International Yoga Day celebration at HUDCO.
Mr. Deepak Kumar Hota, CMD, BEML inaugurating the Housing & Urban Development Corporation event. (HUDCO), organised a special yoga session for its employees on the occasion of the International Day BEML Ltd. observed 4th International Yoga Day of Yoga 2018. The participants were taught vari- recently across all its Offices and Complexes. Mr. ous breathing and stretching exercises for achiev- Deepak Kumar Hota, CMD BEML inaugurated the ing physical, mental, and spiritual well being. More event by lighting the lamp at its Corporate Office in than 100 employees participated in the session. Bangalore. Speaking on the occasion, Mr. Hota said, Regular yoga sessions are also held throughout the “Practicing Yoga in daily life improves the health week for the employees. of the individual which in turn help in increasing the productivity.” The occasion marked Yoga dem- onstration and lecture programmes by Yoga experts International Yoga Day from Isha Foundation, to create awareness on the at KIOCL importance and benefits of Yoga in daily life. KIOCL employees participated in celebrating the spirit of yoga joining millions across the globe International Day of Yoga at for the 4th International Yoga Day at its units. The Cochin Port Trust mass demonstration organized at KIOCL corporate
Mr. A. V. Ramana, Chairman (i/c) addressing the employees Employees of KIOCL practicing Yoga during International during the International Yoga Day. Yoga Day.
Kaleidoscope July, 2018 71 office got enthusiastic response from the employees Khursheed, IRPF, CVO at Nishigandha hall-Anand and the inmates of township, performing different Vihar and Rajanigandha Hall-Jagriti Vihar respec- yoga postures. Demonstrating prominent asanas tively in the presence of Mr. O. P. Singh, Director of the yoga, instructor explained the importance of (Technical/ Projects & Planning) and Mr. K. R. these asana and how it helps in curing and Vasudevan, Director (Finance). healing the ailment. On the occasion of mass Vice-presidents of Jagriti Manila Mandal Ms. yoga demonstration, Mr. M.V. Subba Rao Madhoo Mishra, Ms Padmaja Singh and Ms. opined that “ Yoga is an invaluable gift of India’s Padamini Vasudevan also participated in the ses- ancient tradition. sion. Similar programmes were organised at It embodies unity of mind and body, thought company’s Basundhara Area in Sundargarh, and action, restraint and fulfillment, harmony Orient Area, Lakhanpur Area and Ib Valley Area between man and nature, a holistic approach to in Jharsuguda and Talcher Area, Jagannath Area, health and well-being. It is not about exercise but Bharatpur Area, Hingula Area and Kaniha Area to discover the sense of oneness with yourself, in Angul districts of the state with large number the world and the nature” and today the whole of executives, staff and their families participating world is celebrating as International Yoga Day. A in the sessions. lecture on “Life Style with Yoga” by Mr. Vasant Rathod, Life Spirit Yoga Foundation was organized th at Pellet Auditorium and it was pointed out that NHPC celebrates 4 yoga is a healthy way to beat stress and other health International Day of Yoga related problems.
MCL celebrates IYD with 5-day yoga programme on work place happiness
Mr. Balraj Joshi, CMD, NHPC, along with other NHPC employees and their families participating in community yoga session on the occasion of 4th International Yoga Day celebration by NHPC at NHPC Residential Complex, Faridabad.
NHPC Ltd. celebrated the 4th International Day Yoga at Jagannath area. of Yoga with full enthusiasm and gaiety recently. During the celebrations Mr. Balraj Joshi, Chairman Beginning of five-day Yoga programme on work and Managing Director, NHPC participated in place happiness today marked the International a community yoga session at Community Hall, Yoga Day (IYD) celebrations at Mahanadi Coalfields NHPC Residential Complex at Faridabad along- Ltd. (MCL), an Odisha-based subsidiary of Coal with other senior NHPC officers including Mr. M. India Ltd. Coal miners in MCL wake up to join for K. Mittal, Director (Finance), NHPC. Speaking on yoga sessions across the company units being or- the occasion, Mr. Joshi said that Yoga is highly ben- ganised on theme “yoga for good health and hap- eficial for overall human development and should piness at work place” as company joined the inter- be adopted as a lifestyle for improvement of mind national yoga day celebrations. The yoga camp at and body. The community yoga session witnessed MCL headquarters here was inaugurated by Mr. L. large scale participation of NHPC employees and N. Mishra, Director (Personnel) and Mr. Munawar their families.
72 KaleidOscope July, 2018 NLCIL celebrates International Day of Yoga-2018 NLCIL celebrated the Fourth International Day of Yoga in a big way recently with the theme of this year’s celebration “Yoga for Peace”. The main aim of this year’s celebration is to create awareness world- wide on the importance of staying fit and healthy.
NSIC’s employees celebrating International Yoga Day.
practice which would enlightens the one who prac- tices it on a regular basis and urged all NSICians to make it a Habit to lead a better life. The Yoga Sessions were held across the country in association with Industry Associations, Chamber of Commerce, Institutions, School Children. Also present on the occasion were Mr. P. Udayakumar, Director (P&M) Mass Yoga demonstration by Neyveli School Children and Mr. A. K. Mittal, Direcor (Finance). The NSIC during the International Day of Yoga 2018 celebrations, offices were also illuminated on the eve of IDY 2018 organized by NLCIL at Barathi Stadium, Neyveli. to commemorate the observance of International Dr. Sarat Kumar Acharya, CMD, NLC formally Yoga Day 2018. inaugurated the Fourth International Yoga Day celebrations at Bharathi Stadium, Neyveli. In his Oil India Ltd. celebrates 4th International Yoga Day Message, Dr. S. K. Acharya stressed on the importance of Yoga and appealed International Day of Yoga-2018 everyone to practice yoga classes to stay fit and em- brace healthy choices to lead happy life. More than 1000 students from 14 schools of Neyveli partici- pated in yoga demonstration. Mr. Rakesh Kumar, Director (Finance) Mr. V. Thangapandian, Director (Power) and Mr. R.Vikraman, Director (HR) of NLC graced the occasion. Senior officials, employees, Representatives of Trade Unions and Associations and yoga masters from institutes like Isha Yoga cen- tre, Temple of consciousness (Vedathri Maharishi Institute ) and Brahma Kumaris also joined the demonstration and encouraged the students. All Yoga Day celebrations at Oil India Ltd. the yoga gurus and representatives from the above Oil India Ltd. celebrated the 4th International Day said institutions were honored by CMD, NLCIL. of Yoga recently its Corporate Office in Noida with a number of programmes, which includ- NSIC celebrates International ed a Yoga session and an awareness session on Holistic well-being. Mr. Biswajit Roy, Director Yoga Day 2018 (Human Resources and Business Development), Led by Mr. Ravindra Nath, CMD, NSIC all the Mr. Pramod Kumar Sharma, Director (Operations) NSICians celebrated International Yoga day with and Dr. P. Chandrasekaran, Director (Exploration drill of the Common Yoga Protocol. Speaking on the and Development) led the enthusiastic crowd of occasion, Mr. Ravindra Nath, CMD, NSIC stated officers and employees of Oil India Limited who that Yoga Teaches us to be in harmony. Yoga is that actively participated in large numbers under the
Kaleidoscope July, 2018 73 able guidance of Instructor from Morarji Desai National Institute of Yoga, Delhias per the Common Yoga Protocol 2018, designed by Ministry of Ayush, Government of India.A session includ- ing talk and presentation on the topic ‘Health and Yoga’was also organized to create and in- still a sense of consciousness among Oilindians. The International Day of Yoga was also celebrat- ed across different spheres of operations of Oil India Limited across the Country.
International Yoga Day Yoga camp at THDCIL. observed in THDCIL Later on in the day a Session of “Positive Impact On the occasion of International Yoga Day recently a of Yoga” was organized in association with Bharat Yoga Camp at THDCIL Corporate Office, Rishikesh Swabhimaan Nyas Patanjali Rishikesh. The students was organized wherein Mr. D.V. Singh, CMD and of Aachaaryakualm Patanjali Haridwar also per- Mr. Vijay Goel, Director(Personnel) along with em- formed cultural presentations based on yoga in the ployees of the Corporation performed Yoga. Mr. programme. Mr. Sridhar Patra, Director(Finance) Singh also administered the oath to perform Yoga and Mr. Vijay Goel, Director(Personnel) were also to the employees and the other participants. present during the session.
Visit of OKBM, Russia to HEC Ltd
team from OKBM of Russia has been in HEC Afrom last three weeks to conduct technical audit of HEC’s plant and machineries. HEC had already signed agreement with OKBM in May’ 2018 at Russia for technical collaboration in manu- facture of nuclear power plant component of 700 MHz pres- surized Heavy Water Reactor (HPWR) to be established in the OKBM team at HEC Ltd. country. Some of the major com- ponent/equipment like Steam of HEC’s plant and machineries joint protocol in presence of Mr. Generator, Calandria, End shield which will enable HEC to manu- Avijit Ghosh, CMD, HEC. The and outlet/inlet Header will be facture these nuclear equipments. above technical tie up between manufactured at HEC with their At the concluding of their three HEC and OKBM will enable technical support. Besides these, weeks visit, a joint protocol has HEC to have a large establish- OKBM will also suggest some ad- been signed between HEC and ment in country’s nuclear power ditional component which can be OKBM. Mr. Oleg A. Bykh, Project programme and HEC shall have manufactured at HEC for nuclear Manager of OKBM and Mr. substantial contribution in the power plant. OKBM shall also Rana. S. Chakravarty, Director growth of strategic sector of the provide support in modernization (Marketing) of HEC signed the country.
74 KaleidOscope July, 2018