Linkfest:May 28, 2012

Some stuff I am reading today morning:

Tales of Indian economy twistier than Kama Sutra (Bloomberg)

Understanding Jagan Reddy-A tale of dynasty and megabucks (ET)

Japanese model retains below normal rain outlook (BusinessLine)

Hackers attack RBI website-crash it for a day (FinancialExpress)

How a hedge fund manager outsmarted JP Morgan (Mint)

NRIs likely to be allowed to invest through new route (BS)

Are IPO “pops” a good thing? (BusinessInsider)

Bollywood gossip of the week (RajeevMasand)

Voltas sinking deeper in Qatari quicksand

Voltas Ltd is the global airconditioning and engineering services provider for the TATA group.

For FY 12, their revenues were flattish-Rs.5175 Crores as compared to Rs.5177 Crores last year.

However their Net Profits took a huge hit-Rs.162 Crores as compared to Rs.352 Crores last year.

One big reason for falling profits despite flattish sales is an “Onerous Contract”

Voltas is executing around 1000 Crores of work for the Sidra Medical and Research Centre Hospital Project in Qatar.There have been significant upward revision in the estimated cost due to design changes and delay in execution.

As per their press release,

“There have been several impediments and constraints arising from delay in designs,frequent changes in architectural/interior layouts,ceiling height restrictions and abortive engineering /rework.Uncertainties exists on variations/additional revenue claims and costs to come till the completion of the project due to the complex nature of the ‘design and build’ project , changes in the design still made by the client and delay in completion of this project.”

Hmmm…is this corporate speak for “We don’t know when this nightmare will end and how much it will cost us !!”

What was that again?

‘In our country if we combine diesel, kerosene and LPG Rs1,90,000 crore is the amount of subsidy given. The budget of the entire rural development and drinking water ministries in comparison is Rs99,000 crore. What kind of a country is this?Taxes had to be imposed on sale of petrol so that development work could be carried out in the country. Where does the tax go? Where does the money come for NREGA? Where does the money come for Prime Minister’s Gramin Sadak Yojana? It comes from taxes,’  said rural development minister Jairam Ramesh