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“In India, companies may fall sick, but promoters rarely do!”

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May 20, 2009

Aftek begins moving from sub Rs 10 to now Rs 11.50…Expect Fireworks

Simply cannot figure out why Aftek is ‘kept’ this low at Rs 6 to Rs 10 range for a long time…Key word here  is ‘kept’.Today it broke to Rs 11.50 with fairly strong volumes of over Three lakh and Six Lakh Shares on BSE and NSE respectively.

With over Rs 30 cash/share , as over Rs 300 crs in cash,most of it lying in a Portugese bank as a Dollar Deposit or in a Current A/c and with little debt and a high Book Value of Rs 90, what is holding Aftek back at Rs 10 levels ?

One would suspect that the Company has no control over the Cash ,although the auditors,had accepted the management’s assurance that there was no remittance restriction on these funds….The Funds do exist,unlike the Satyam Saga….At the last AGM,the MD,Ranjit Dhuru was asked by an irate shareholder about this situation…He was unable to give any convincing answer… there is clearly a Corporate Governance and lack of Tranperancy issue here

I wonder how RBI allows Aftek to keep such large Monies for years in Portugal,when the Company has no operations there !

Aftek earns no significant Income on these Funds,but has shown a Rs 89 crores FX gain this year as US Dollar has appreciated 25% on the Rupee in 2008/9…It has used this to provide for Rs 130 crs for it’s Investment and loan to it’s German Venture which has been wound up

It’s a controlled scrip,although the shareholding pattern does not reveal it and Promoters  hold under 20 % and have not increased their shareholding….giving credence to the suspiscion that they do not control the Company’s Funds lying in Portugal…Who does then ? 

Expect fireworks in Aftek…It’s 52 Week High/ Low is Rs 56/Rs 6…so we are yet at the Lower End…..Surely expect fireworks 

Firstsource Solutions…up 23% today from Rs 17 to Rs 21 + on Exceptional Volumes

NSE saw Volumes of 32.7 million shares and BSE of 19 million shares as Firstsource Solutions climbed smartly 23 % to Rs 21 + today even as Indices corrected 1.7 %

I’ve covered in detail FSL in earlier blogs on January 30,2009…  saying it presented a buying opportunity at Rs 9/10 and if Dollar fell to Rs 42 the price would rise to Rs 25+.The Dollar is down only to Rs 47.50 and FSL is up strongly

On February 5,2009 I commented on their Q 3 results and suggested some financial restructuring to reduce FCCB $ Exposure

The rising price and Exceptional Volumes tell us something strong is brewing….

Just caught Padmasree Warrior,Cisco’s CTO on NDTV Profit’s Unstoppable Indian Show….truly inspiring !

It’s 5 pm and an inspiring talk just ended on NDTV Profit’s Unstoppable Indian Show….Padmasree Warrior,Cisco’s Chief Technology Officer was featured…She’s at the heart of Exciting Innovation in Technology

You had the Anchor,Manvi, in the Cisco,New Delhi Office interviewing, by way of High Quality Telepresence Technology, Padmasree Warrior in San Jose,USA

Some of Padmasree’s Inspiring Answers to Manvi’s Interesting Questions….brought out the depth and humility in Padmasree

  • Cisco’s Focus is three pronged…Video…Collaboration (Inter Company…earlier there were cross functional teams within the same organisation)….Virtualisation 
  • Lines are getting Blurred between Life and Work
  • Internet Mobility will be pervasive
  • Enterprise Applications across multiple device platforms
  • Most Satisfying Professional Moment is when I’m able to make a difference to someone in my organisation…help them in decision making,advise them and see that I’ve made a difference in their Life and Career
  • I was born in the small town of Vijaywada in Andhra Pradesh and had a happy and loving childhood….shifted to male dominated IIT Delhi…barely knowing any Hindi and being just one of five women among a batch of 250…..was just 16 or 17 when i met my husband in the first year at IIT…we shall be celebrating 20 years of happy wedded life next month
  • Cannot comment on getting any feelers but was flattered to be part of the rumour mill that President Obama was considering me to be the CTO in his is a new and welcome post created
  • Already working with the Government…Obama has send the Agenda and Healthcare,Broadband Expansion and Smarter and Greener Cities are his Technology aided priorities
  • I don’t like the word ‘Balance’ when it comes to Life and Work…It would mean they are in conflict with each other….I prefer the word ‘Integration’….When my son was born,I was running a Factory…I felt guilty about not being at work when I was at home…and felt guilty that I was not with my son,when I was in Office !…taught me a lesson…it is the guilt associated with making the decision that gives the stress….there is no such thing as a perfect decision…you make a decision ,you feel appropriate at the time…you should just flow with it
  • Be approachable,transperant,genuine…give them the true facts….never say anything that does not come from your heart
  • As CTO of a big Organisation,my day is predefined and structured…I know who I’m going to meet and when and why…The role of a Leader is changing dramatically…A Leader needs to have Peripheral Vision…That’s why I blog and twitter and thus communicate with many ,who otherwise I would not have
  • Others see the Downturn as to stop what they’re doing…..we see it as a time to accelerate and look for opportunities for acquisitions
  • Cisco is redifining  Innovation to be on par with Operational Excellence…very rarely does an Organisation excel in both 
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