Tamil Nadu assembly introduces bill to take over Annamalai University

Karthick S, TNN | Apr 15, 2013, 05.30 PM IST

CHENNAI: In a bid to take over the crisis-riddenAnnamalai University in Chidambaram in Cuddalore district in northern Tamil Nadu, statehigher education minister P Palaniappan on Monday introduced in the state assembly a Bill to repeal and re-enact an existing law. 

The new legislation would in effect give the state powers to run the University, once a renowned centre for education, drawing students from across the country. 

The act, when it comes into force, may be called the Annamalai University act, 2013. By introducing the bill, the state government is attempting to take control of the University from pro-chancellor M A M Ramasamy, the heir-apparent of the University founder Rajah Sir Muthaiah Chettiar. 

The new act says the minister-in-charge for higher education in Tamil Nadu shall be the pro-chancellor of the University.
 
Annamalai University in 1941

As per the new bill, all property, including movable and immovable, belonging to the University or held by a trust and their liabilities shall stand transferred to the University under the new act. The bill also paves the way for appointment of vice-chancellor, registrar and all other officials below these two ranks. The state government said, "Though the position of founder appears to be an honorary one, past experience indicates that the powers and privileges conferred on the founder has been grossly abused," the bill added. 

Justifying the need for the legislation, the minister said the provisions of the Annamalai University Act, 1928 were not similar to the provisions of other University Acts in the state. 

The peculiar feature of the university act, which vests vast powers and privileges on the founder, had led to mal-administration of the University. The composition of authorities of the University also requires changes in order to provide adequate representation for the present day stake holders, said the objectives of the bill. 

During November 2012, the Joint action council of the Annamalai University teaching and non-teaching staff association engaged in various kinds of protests. "To safeguard the welfare of the students and to allay the apprehensions of the staff, the government constituted a special local fund auditing team to assess the financial and other irregularities in the University," the bill said

About the university :

Annamalai Chettiar in 1941
Born	September 30, 1881 Kanadukathan, Madura district, British India
Died	June 15, 1948 (aged 66) Madras, India
Residence	Chettinad palace
Occupation	businessman
Spouse(s)	Rani Lady Seethai Achi
Children	M. A. Muthiah Chettiar, M. A. Ramanathan Chettiar, M. A. Chidambaram, L.CT.L.PL.Lakshmi Achi
Parents	S.R.MM. Muthiah Chettiar (father)
Relatives	Ramaswami Chettiar, Sir M. Ct. Muthiah Chettiar, P. Chidambaram

Raja Sir Satappa Ramanatha Muttaiya Annamalai Chettiar KCSI (b. September 30, 1881 - d. June 15, 1948), also known as S. Rm. M. Annamalai Chettiar, was an Indian industrialist, banker, educationist and philanthropist, who is largely remembered for his social work and endowments in Tamil Nadu. He is the founder of Annamalai University in Chidambaram.

Annamalai Chettiar was born on September 30, 1881 at Kanadukathan in the Sivaganga estate of the then Madura district in the Madras Presidency of British India.

 His father, S.R.M.M. Muthiah Chettiar and brother Ramaswami Chettiar were noted bankers and philanthropists. Ramaswami Chettiar was one of the founder of the Indian Bank of which Annamalai Chettiar later served as a director.

After his schooling, he joined his family business. During the course of his business, he visited some of the countries in Southeast Asia.

 He also spent a considerable time in England. On his return home, he became the head of the civic body of Karaikudi, also member of several local organizations and the District Board.

The Annamalai University owes its existence to the wisdom, benefaction and philanthropy of a far-sighted visionary- Dr. Rajah Sir Annamalai Chettiar of Chettinad.

 As early as 1920, he founded Sri Minakshi College in Chidambaram, a great pilgrimage centre and also a centre for South Indian traditional culture and learning. 

In 1928, the Annamalai University Act was passed and Sri Minakshi College paved the way for the establishment of Annamalai University.

Dr. Rajah Sir Annamalai Chettiar, during his tenure as Pro-chancellor for 19 years, paid great attention to the growth and development of the University and took immense care to appoint able Vice-Chancellors of extraordinary calibre and learned and enlightened staff members who were scholars and scientists of great repute as Professors and Heads of Departments.

The Annamalai University is a unitary, teaching, and residential university. It was founded by the munificence of the farsighted and noble hearted philanthropist and patron of letters the late Hon’ble Dr. Rajah Sir Annamalai Chettiar of Chettinad, Kt, LL.D., D.Litt. He started several colleges, and ultimately, the University in 1929. 

Since its inception, it has progressively tried to realize the aims of the noble Founder Pro-Chancellor. After him, his illustrious son, Padma Bhushan Dr. Rajah Sir Muthiah Chettiar of Chettinad, was the Pro-Chancellor from 1948 to 1984, and he sedulously nurtured the growth and development of the University. The present Pro-Chancellor Dr. M.A.M. Ramaswamy, a philanthropist and a patron of sports, is the distinguished son of Dr. Rajah Sir Muthiah Chettiar. 

The University has had the unique good fortune of having a succession of eminent Vice-Chancellors to guide its destinies. During the last eighty two years the University has grown rapidly and has consolidated its position as a unitary and residential University with forty-nine Departments of Study and over 3240 members on its teaching staff. Annamalainagar is already a busy and full-fledged University town, east of Chidambaram, the abode of Lord Nataraja. The University campus, including the colleges, hostels, and playgrounds, occupies an area of about thousand acres.

Takeover tycoon R P Goenka dies at 83

BS Reporters  |  Kolkata  April 15, 2013 Last Updated at 00:54 IST

RP Goenka established RPG Enterprises in 1979, which included Phillips Carbon Black, Asian Cables and Murphy India

Rama Prasad Goenka, one of the country’s earliest takeover tycoons, died here today, leaving behind a Rs 31,000-crore empire. He was 83.

He was unwell for a while. The cremation was held at the Keoratala ghat. The baithak will be today.

After graduating in history from the elite Presidency College, Goenka attended an advanced management programme at Harvard.

He joined Duncan Brothers, then a managing agency, in 1951 on Rs 350 a month. Later, in a coup of sorts, Keshav Prasad Goenka, Rama Prasad’s father, took control of Duncan Brothers. The appetite for acquisition was possibly passed on from father to son. After the family settlement — that entailed dividing Keshav Prasad’s empire among three sons, Rama Prasad embarked on a buying spree, and the title of takeover tycoon stuck to him for life.

RPG Enterprises was formed in 1979, with an annual turnover of Rs 105 crore. In 1981, Ceat was acquired. There was no looking back since then. At the insistence of Sanjiv Goenka, CESC was bought. The other acquisitions include KEC, HMV, Spencer and Harrisons Malayalam.

Dunlop was a separate story. Goenka acquired a minority stake in the company, along with Manu Chhabria. Differences with Chhabria led Goenka to sell his stake, though only after turning it around.

Among the aborted attempts were Premier Automobiles Ltd (PAL) and Haldia Petrochemicals. The attempt to acquire PAL was apparently put off on a request from Indira Gandhi.

His proximity to Gandhi was well known, as was the fact that his loyalties were with the Congress. He was elected as Rajya Sabha member in 2000.

It could be foresight or personal experience but Goenka drew up the blueprint for one of the most amicable settlements in India Inc, that formalised a division of assets between his sons about three years ago.

The settlement was the genesis of a new entity for the Sanjiv Goenka-controlled companies, the RP-Sanjiv Goenka Group. The Harsh Goenka companies are under the aegis of RPG Enterprises, though both sons have the right to use the RPG name.

People in the know say Goenka had learnt early in life that this was the best way to nip in the bud any possible settlement disputes.

Keshav Prasad had divided his empire — spread across tea, automobiles, tyre, jute, cotton textile and electric cables — among three sons in his lifetime.

Gita Piramal’s book, Business Maharajas, says according to the settlement drawn up by Keshav Prasad, brothers Jagdish, Gouri and Rama started out with a clutch of companies with roughly the same turnover. Each group contained a carbon black company but varied in profitability and potential. It was decided that inheritance should be such that there was least disturbance to the management of the companies.

A look at the split between the Sanjiv Goenka group of companies and Harsh Goenka shows the underlying theme was common in the method for separation: A near-equal share of sales turnover between the segregated group of companies and least disruption to management, as the brothers have bagged the companies that they managed.

Rama Prasad Goenka will always be known for his business mettle. But he once told a close aide that his greatest achievement was the temples that he built, including the Mahalaxmi temple in Kolkata. He was especially happy that he had not built a “Goenka Temple”.

Will Infosys’s next CEO be an outsider?

S.D. Shibulal is the last of the Infosys founders to helm the IT company. Photo: Aniruddha Chowdhury/Mint
Live Mint :Pankaj Mishra  |  Anirban Sen :Sun, Apr 14 2013. 11 58 PM IST

With hunt for successor to Shibulal beginning, some board members want search to include external candidates 

Bangalore: Infosys Ltd, India’s second biggest software firm, has started the hunt for a chief executive officer (CEO) when the last of its founders, S.D. Shibulal, retires in two years. Some directors on its board want the search to include external candidates because the company’s current management is struggling to regain its past glory.

Jeffrey Sean Lehman, the New York University Shanghai vice-chancellor and chairman of the nominations committee at Infosys’s board, is leading the process, said two people directly familiar with the development. Lehman led the hunt for Infosys’s chairman when the company’s iconic founder N.R. Narayana Murthy retired in August 2011.

Infosys’s 15-member board has nine independent directors, two co-founders and four leaders from the management. Of these, some are of the opinion that Infosys needs to make bolder decisions, especially while selecting the next CEO as part of the company’s biggest management transition.

“The board is duty-bound to look for the best possible candidates, both internally and from outside. Given recent performance, a more thorough hunt that includes candidates from outside too is something high on the agenda,” said one of the people. Both requested anonymity because these are confidential details and nobody is authorized to comment.

Founded in 1981 by Narayana Murthy and six others, including Nandan Nilekani, S. Gopalakrishnan and Shibulal, Infosys was considered the bellwether of India’s $108 billion information technology (IT) sector until three years ago.

In the past two years, the company has missed its revenue and profit growth forecasts several times and has been overtaken by Cognizant Technology Solutions Corp. in annual revenue. It also pursued the new 3.0 strategy doggedly in an environment when outsourcing customers are only looking to save costs.

Last year, Infosys missed the lower end of its revenue forecast at least twice and stopped giving quarterly forecasts. The sluggish growth rates and increasingly impatient investors prompted Infosys to re-examine its strategy and it started cutting prices for select clients. The company also entered into revenue-sharing agreements with companies such as IPsoft Inc. to drive up business volumes, even at the cost of margins.

On his part, Shibulal admitted that the new strategy that aims to generate one-third of total revenue from Big Data solutions, products and platforms may have been ill-timed.

“There’s no doubt that the volatility impacted our revenue, which did not allow us to benefit from 3.0. The strategy is all about creating two other new growth engines. That should be done at any point of time—there’s no good time or bad time for that. We cannot wait for the world to be stable before we say we’re going to create a new growth engine,” Shibulal said in an interview after the company announced its earnings for year ended 31 March, which fell short of the 5% revenue growth prediction.

When asked about his views as a board member on Infosys’s next CEO and the ongoing succession planning, Shibulal said that was being done by the nominations committee.

Experts such as Partha Iyengar, who heads research at Gartner Inc.’s India office, said Infosys’s pessimistic stance at the beginning of the year is a cause for concern and it’s time the board gets aggressive.

“If you’re in a position of strength and you’re making changes, then it’s alright. But when your position is weak, you should not be making drastic changes. They made those changes at a time when they came to the realization that the market doesn’t see them at a premium,” said Iyengar.

“I don’t think the board of Infosys will significantly shake things up now. They should take a long hard look at the company and get back some mid-course sanity,” Iyengar added.

Analysts at brokerage firms, some of which had upgraded Infosys after better-than-expected earnings announced for the December quarter, were shocked to see their own forecasts of a recovery go wrong.

“Infosys’s extremely poor result across top line and margins should take the stock back to its pre-December 2012 report levels. This volatility in Infosys’s financial performance is even worse than a tier II IT company and the Street will rightly punish it with a massive de-rating,” CLSA analysts Nimish Joshi and Arati Mishra wrote in their 12 April note.

While Infosys management blamed macroeconomic uncertainties for providing a weak 6-10% revenue growth forecast for year ending March 2014, experts are not convinced.

“There is a lot of clarity in their key markets, especially in the US. There’s clarity in decision-making on the political front, whether it’s the H1B visa issue or immigration. Infosys’s performance in this quarter isn’t justified by the broader economic conditions,” Iyengar of Gartner said.

The challenge for the Infosys board is to ensure that the company does not become an outlier in an industry where top firms including Tata Consultancy Services Ltd, HCL Technologies Ltd and Cognizant continue to gain market share in the same industry, serving similar customers.

“It’s not just the board; the transition at Infosys is seminal with all founders set to go. The board, especially independent directors who have operated under the shadow of the founders for long, will also get more active,” said the second person familiar with succession planning.

The question is whether Infosys has enough time to trust the strategy being executed by the current management.

“As far as the leadership is concerned, they need someone with a vision. Infosys specifically is at a stage where they need someone like that. This is not the right time for detail-oriented management,” Iyengar said. “So they need someone with a vision, someone who’s not afraid to take risks, and someone with charisma. Infy has been weak on all those counts.”

After EMIs, Samsung offers cash back to woo smartphone buyers

Indiatoday:PTI  Mumbai, April 15, 2013 | UPDATED 17:07 IST

Samsung is now offering 15 per cent cash back on its flagship 'Galaxy' range.

After launching EMI scheme, Korean electronic giant Samsung is now offering 15 per cent cash back on its flagship 'Galaxy' range, as it tries to induce customers to upgrade to high-end phones.

"The strong success that we are garnering with zero per cent finance-based offers encouraged us to offer the 15 per cent cash back offer with Standard Chartered and ICICI Bank," Samsung Vice President (Mobile) Asim Warsi said.

The offer will be valid on Galaxy Note 2, Galaxy S3, Galaxy Grand, Galaxy Tab2 as well as Galaxy Camera, he added.

The company has been promoting its Galaxy smartphone models through finance offers since the beginning of the year, following a similar move by iPhone maker Apple.

Apple saw a strong uptake in the Indian market, following the introduction of EMI scheme.

For Samsung, EMI offer helped it more than double its finance-linked sales in January-March period.

Samsung, which has over 43 per cent share of the Indian smartphone category, has sold more than one crore Galaxy devices in the country in 2012.

According to CyberMedia Research (CMR), more than 221 million handsets were shipped to India in 2012.

Though smartphones comprised a small chunk of the overall handset market at about 7 per cent, the high-end category grew at a robust 35.7 per cent to 15.2 million devices in 2012 from 11.2 million units in 2011.

Feature phones sales, on the other hand, grew 19.9 per cent to 206.4 million in 2012 from 172.2 million in the previous year.

Samsung was the category leader, followed by Nokia (13.3 per cent) and Sony (8.2 per cent), CMR said.

Investors rush to sell Kerala banks’ stocks

Since 28 March, shares of Federal Bank have dropped 8.31%. Photo: Sivaram V/Mint

Live Mint :Dinesh Unnikrishnan :|  Joel Rebello : Mon, Apr 15 2013. 10 09 AM IST

Saudi Arabia’s law against illegal migrant workers is likely to affect flow of NRI deposits, remittances to Kerala

Kerala-based lenders have seen a sharp erosion in the value of their shares in the past fortnight after Saudi Arabia initiated a clampdown on illegal immigrant workers and brought in regulations that stipulated reservation of 10% of jobs for citizens. The new rule, known as Nitaqat, is likely to impact over 300,000 low- and semi-skilled Indian workers, most of whom are from Kerala.

The deadline to implement the law, originally set for late March, was extended by three months but panic has gripped Indian workers in that country. The Kerala government had moved the centre to address the matter.

Any job losses can have ramifications on the flow of non-resident Indian (NRI) deposits and remittance funds to the southern state, routed primarily through Kerala-based lenders such as State Bank of Travancore (SBT), Federal Bank Ltd, South Indian Bank Ltd (SIB) and Dhanlaxmi Bank Ltd.

Stocks of these lenders have been declining since late March when the new labour norms became known.

Since 28 March, shares of Federal Bank have dropped 8.31%, SIB by 7.33% and Dhanlaxmi by 3.72%. Shares of SBT, a relatively illiquid stock, have dropped marginally.

During this period, the Bankex, the index of major bank stocks, fell 0.32%.

On Friday, SBT ended 0.92% down, Federal Bank lost 0.88%, SIB dropped 0.44% and Dhanlaxmi Bank fell 1.34%, while the Bankex gained 0.96%.

Among these lenders, SBT has Rs.19,200 crore in NRI deposits—the largest among the four lenders—followed by Federal Bank (Rs.12,900 crore) and SIB (Rs.6,000 crore). Dhanlaxmi Bank’s NRI deposits are at about Rs.1,000 crore. These banks typically offer 7-9% interest on NRI deposits.

Most of these banks generate about 10% of their fee income from the remittance business.

SBT managed Rs.31,000 crore of remittances from the Middle East in the fiscal year ended 31 March. “We are yet to ascertain the impact of the new regulations. According to official estimates only 500-600 people have returned from Gulf but the actual number is not known,” said Bhanu Murthy, deputy general manager, NRI services, at SBT.

Analysts and bankers ruled out any major impact on remittance and NRI deposit mobilization by these banks, saying the clampdown will primarily impact the unskilled, illegal immigrants but not regular employees. They attributed the fall in bank shares to a panic reaction by investors.

“There may not be too much of an impact on the remittance-related fee income and NRI deposits as banks typically fulfil the know-your-customer procedures while accepting such depositors,” said Abhishek Kothari, research analyst at Mumbai-based brokerage Violet Arch Securities. According to him, banks don’t accept deposits from the kind of illegal immigrants who may now be forced to come back.

Abhraham Chacko, executive director, Federal Bank, said the fall in stock prices was just a “knee jerk” reaction to the change in the Saudi law.

“It is true that Kerala would be impacted most because they have the largest share of migrant workers but it is also a fact that these workers do not have accounts in Federal Bank alone. Also, the 10% job quota that Saudi is enforcing will impact labour from other countries like Pakistan and Bangladesh, besides India,” Chacko said.

Chacko said about 7% of total remittances to India from the world are through Federal Bank. India was the top receiver of global remittances in 2012, getting $70 billion, ahead of China, which got $66 billion, according to the World Bank.

“About 25% of our deposits come from NRIs but more than 80% of them don’t stay with us —people spend the money. I think even if there are job losses in Saudi, it won’t be big numbers,” Chacko said.

Federal Bank had total deposits of Rs.51,607 crore as of December 2012.

Dhanlaxmi Bank too ruled out any significant impact. “Major part of the remittances are maintenance remittances (money sent for household expenditure). Such remittances contribute a relatively small portion of our deposits,” said P.G. Jayakumar, managing director and chief executive officer of Dhanlaxmi Bank.

Migration to the Gulf countries from Kerala is on the decline, according to a study conducted by K.C. Zachariah and S. Irudaya Rajan of the Centre for Development Studies in Kerala.

The number of Kerala migrants was estimated at 2.28 million in 2011, up from 2.19 million in 2008, 1.84 million in 2003 and 1.36 million in 1998.

“Kerala is going to be out of the emigration picture in future,” Rajan said. Kerala’s Gulf connection could reach its inflexion point in a matter of four-five years, the study said.

Muslims comprised 44.3% of Kerala migrants compared with a 26.5% share of the state’s population.

dinesh.n@livemint.com

PTI contributed to this story.