Thursday…not some stray thoughts !

It’s another Thursday..the last in January 2011…and as Derivatives settle themselves for the routine monthly close,I’m trying to settle a few not so stray thoughts……

…..An Additional Collector is burnt to death by the Kerosene Mafia near Nasik…an Activist seeking Information under RTI on a Builder is beaten up badly by the builder’s goons accompanied by a local Political Party MLA….FIRs are recorded reluctantly after some pressure….Methinks the Government Law Enforcement Machinery is unwilling and unable to protect honest people who do their jobs…..because somewhere or the other they are involved…..not a good sign of the times

…..Final CA Results were announced last week…and they have been quite disastrous….Intermediate Rankers have failed both Final groups…those who thought they had done exceptionally well and were planning parties to celebrate their passing have flunked…..the morale is extremely low and increasing frustration is evident…I know quite a few of those who appeared…..Methinks the ICAI needs to revist and rethink their  approach in controlling and regulating the number of successful candidiates lest they be termed as sadistic !…..the Relative Marking too is causing agony and is not viewed as being fair.….An Intermediate Ranker gets just 8 in IT ! after having self assessed that the Paper went of  very well !…..Frustrated Youngsters,many of them really brilliant,lose self esteem and most  will increasingly shun and switch from CA as a career on Failing ….My advice to Youngsters is to stay off CA if they do not have the ability and willingness to devout to serious stuides for months before appearing for Exams…these are not College Exams…this is a Professional Qualification and is therefore bound to be tough….and do not take it personally if you Fail….it’s not that the ICAI is out to get you…it’s just that the number of successful candidates will always be controlled at low levels…this time it was just under 15% of all those who appeared…that’s 1 in 7 passing…some centres it was 1 in 12….and when I talk to practising CAs they complain of a shortage of professional staff !…so what’s with the Balance !….if the objective is to preserve or up the worth of a CA by limiting the number of successful candidates,it may just end up in CA being seen as a Worthless Option !…Ask the Youngsters      read more

A subdued looking Anil Ambani addresses ‘Share Owners’ at the Reliance Capital AGM this morning

Just saw Live Coverage on TV of  Anil Ambani addressing his ‘Share Owners’ at the Reliance Capital AGM this morning

Imagine a serious looking Gentleman presenting some very good looking Group and Company and Business Potential Statistics in a dull,monotone…that’s what I felt Anil Ambani was doing this morning

Dressed in a Black Suit and even a Dark (Black?) Tie probably reflected his subdued and sombre look…looked as if he has not slept well last night….There was not even a flicker of a smile and he was lacking his usual confident and aggressively positive demeanour…..There was a person who created a mild sloganeering disturbance as Anil spoke,but was quickly whisked away from the Indoor Auditorium.

2008 and 2009 so far have been challenging years for Anil Ambani….His Reliance Power issue in Feb 2008 took Rs 427.50/share from Retail alottees and a face saving bonus dropped the holding Price to just over Rs 267…The share had listed marginally positive ,but then the decline began and the holding price has yet to be reached again…It’s currently Rs 168 levels…and yesterday in the continuing RIL v/s RNRL war for the former not honouring the MOU between the Ambani Brothers for supplying 28 mmtu of Gas daily from the KG basin to the latter ,the Supreme Court allowed rival brother’s RIL to continue it’s Gas Sales to third Parties as per the Jan 2009 agreements  

Anil Ambani desperately needs his woo his shareholders to stay with his Group….and so now we have the personal touch….Addressing Shareholders as ‘Share Owners’….His ‘Share Owners’ would have appreciated more if he had only priced his Reliance Power Issue below Rs 200 and not at Rs 427.50….Maybe Anil,you can make amends by issuing Reliance Life Insurance at Par to the original allottees,who yet hold the shares, of Reliance Power !

Another interesting part of the AGM Address was Anil’s revelation that they are planning to unlock value for shareholders of Reliance Capital by going for an IPO or a strategic Investor sale or a combination of both of the wholly owned subsidiary,Reliance Life Insurance Ltd….Some value of this Insurance Subsidiary is already embedded in the Current Share Price of Rs 890 of Reliance Capital…last Three Months,the share Price has surged by over 70% from levels of Rs 500

Some very Interesting Points from Anil Ambani’s Presentation are below read more