Category: Business

Srinagar: At a place where youth are scared of taking to entrepreneurship, young women in Kashmir are taking lead by setting up boutiques to earn their livelihood and support their families. Shazia (name changed) started her boutique in 2009 at her home with almost no money. She started her journey with just two suits. With mere commitment and hard work, today she has a full-fledged boutique and supplies her products to many garment stores in Valley. “I started with just two suits and I had no capital in hand. Today I supply material to many of the known shops in Fairdeal shopping complex,” says Shazia. Shazia found refuge in entrepreneurship after bracing up many problems at home. “I had so many family problems and my life was shattered.  This business helped me forget all my worries and I have become financially independent. Now am feeding my family too,” says Shazia. Though many disapprove of women working in Kashmir however Shazia found dignity in her business. “The boutique has brought me dignity and also I do not have to go out. I have set up my unit at my home.” These women entrepreneurs have not only created jobs for themselves but also provide society with solutions. Beenish, who has done masters in business administration, set up boutique by the name ‘Panache’ at MA Road Srinagar to keep herself busy and be financially independent. “I didn’t have any financial problems but I just wanted to be busy. I was into the world of fashion since beginning and I found this business of my taste and very innovative,” says Beenish. Beenish’s family is happy with her business venture and they fully support her. Another girl is Mehvish who is pursuing masters in Sociology. Mehvish has established Labia-a Lucknow chicken art garment shop-in Abi Guzar area of Srinagar to support her family. “I lost my father 13 years ago. I have two sisters and my mother is the only one who earns for the entire family. When I completed my graduation and there were less job opportunities I came up with an idea of establishing my own business,” said Mehvish. “This is just the beginning and I hope I will be financially independent,” Mehvish added. Gazala Amin who has earned her name in the business and is first women to be office bearers of oldest trader’s body- Kashmir Chamber of Commerce and Industry- says nothing can be better than a business for women operated from her home. “Now-a- days when it is difficult to balance your personal and professional life nothing can be as good as starting a business from your home. Boutiques are a good source of income and growth for women,” says Gazala Amin who is dealing with essential oils.

Threatens public agitation if killings don’t stop

Srinagar: Kashmir Economic Alliance – a constituent body of various traders, hoteliers and transporters’ organizations, Saturday threatened to call for a public agitation against the government “if killing of innocent people in Kashmir does not stop.”

Chairman, KEA, Muhammad Yaseen Khan while condemning the killing of Bashir Ahmad, a Downtown youth who was shot dead by CRPF on Wednesday, said: “If the cycle of killing of innocent people does not stop, we will have no alternative but to urge the people to take to roads and protest against the government.”
Talking to Greater Kashmir on the margins of KEA executive committee meeting here today, Khan said: “The KEA could smell a big conspiracy in the killing of innocent people in Kashmir. There are agencies both in the state as well at the centre who want to weaken  and are weakening Kashmir economy.”
“The boy (Bashir Ahmad) was killed when the elections were over. He was working for the entire day at his home and just when he came out to have a walk after a daylong work, he was killed. This shows that there are elements who want to keep the things on boil in Kashmir and hit its economy,” Khan said.
Khan appealed the world community to take cognizance of the recent killing and put pressure on Indian government to stop the wanton killings in Kashmir.
About elections he said: “These aren’t credible elections nor are they fair.”
About the working of the present government he said, ““We have lost all hopes with this government. After every killing this government orders magisterial probes which everybody knows never reach to any conclusion,” he said.
KEA spokesperson, Siraj Ahmad said: “The balance sheet of the present government does not reflect even a single promise which has been met by it.”
He said: “Should the lower voter turnout in elections give any reason to the forces to kill our youth,” Khan said.
He said the KEA won’t allow any further killing or arrest of “our children. If the forces continue with it, we will issue a call to the people to come on roads and agitate against the government.”
“No democratic state uses such repressive measures on its people and it is shame for Indian government to even call themselves democratic,” Siraj said.
Economy in doldrums
Khan blamed the government of damaging the economy and tourism sector in Kashmir. “If we see the contribution of National Conference-led government in the state towards economy, they have nothing to show,” he alleged and added that the hollow promises of the state government had aggravated the problem of people in Kashmir.
He alleged the economy of Kashmir was being weakened “deliberately by the agencies.”
Earlier, the KEA held its executive committee meeting. Representatives of its constituents from districts of Kashmir attended the meeting.
In the brainstorming session held during the EC meet, the members put forth various suggestions for promoting trade and commerce in Kashmir.
The members expressed dismay that the government and its ministers were not paying any heed to the genuine demands of the traders.
President KHARA Showkat Chowdhery said: “The business community in Kashmir despite forming the majority portion of the population is being ignored by the government.”
“Whenever we go with our demands to the government, the ministers hardly bother to address our problems.”

SAJJAD BAZAZ

Bad cheques, good solution

Incredible! But true. You can withdraw money from your account despite having insufficient balance.

One of the oldest banking instruments which has so far successfully negotiated the information technology revolution has been Cheque. This piece of paper infuses a kind of empowerment to a holder that holds its worthiness beyond being a mere piece of paper. Numerically speaking its use in the day to day banking transactions has of course gone down, but it’s not yet outdated. The way it has survived in the modern banking system makes us believe that the cheque is going to remain an inevitable part of the system.
How do we define a cheque? Cheque is a written order of an accountholder upon a bank to pay to or to the order of a designated party or to bearer, a specified sum of money on demand. The person who draws the cheque is called drawer, the bank on which the cheque is drawn is called drawee and the person to whom payment is to be made is called payee. It is an order of the accountholder (customer) without condition. The banker has always to pay it on demand. Precisely, it is payable to a certain person or to his nominee or to the bearer of the instrument.
The parties involved in a financial transaction through cheque are governed by certain rules to uphold its image as instrument of credibility. The first and foremost thing is that a cheque should not bounce once issued by a drawer in favour of a payee. This means, the accountholder who issues a cheque must have sufficient balance in the account to meet the liability of the cheque. On the dishonour of a cheque, one can file a suit for recovery of the cheque amount along with the cost and interest and can also file a Criminal Complaint u/s 138 of Negotiable Instrument Act for punishment to the signatory of the cheque for having committed an offence.
Precisely, it’s a criminal offence.
In order to enforce discipline among bank customers, the Reserve Bank of India (RBI) has asked the banks to take certain steps while dealing with incidents of frequent dishonour of cheques. The banks have been told to make it clear to its customers that in the event of frequent dishonour of a cheque for want of sufficient funds in the account, no fresh cheque book would be issued. In case of current accountholders, the bank has the discretion to close the account. Meanwhile, if cheques drawn on a particular account are dishonoured four times during a financial year for want of sufficient funds, banks are allowed to deny a fresh cheque book to the customer.
Another important thing to note is that the validity of the cheque is only three months. The banks are under regulatory directions not to accept cheques having age beyond three months. After the stipulated period, the cheque loses value and remains a mere piece of paper.
There’s also a regulatory direction on writing on the cheque. No alteration or modification in cheques is allowed even if an authorized signature has been made at the place of alteration. The banks will dishonour any kind of altered cheques. So, if a drawer makes some mistake in writing a cheque, he should simply cancel the cheque leaf and write new one. Otherwise, the banks will only dishonour the cheque.
Among all the things, dishonouring of a cheque is a serious lapse on account of being a criminal offence and slapping punishment to the drawer is inevitable. Innumerable instances are on record where an account holder issued cheques for a certain amount despite knowing that the balance in his/her account was insufficient. But instances also galore where drawer was not aware that his/her account is short of funds to meet the liability of the cheque. But in both cases, intentionally or unintentionally, dishonouring of a cheque is offence.
Amid the incidents of dishonouring of cheques, banks started developing products where an account holder can withdraw amount and issue cheque despite having insufficient balance in his/her account. Once such product is Smart Saver Scheme introduced by J&K Bank. If you are seriously thinking to be on safer side and avoid dishonouring of cheques, this is the financial product on which you can bank upon.
The mechanism of the scheme is amazing. You have to deposit Rs. 25,000 or more but in multiples of Rs.1,000 in a core term deposit for a period of one to ten years. Simultaneously you have to open either a savings bank account or a current deposit account which has to be linked to the core term deposit. You can operate your linked accounts (savings or current account) like a normal account. This facilitates you to deposit more money under the scheme. You don’t have to deposit it in the core term deposit, but in the linked savings bank account or current account. Whenever balance in these accounts will cross a threshold limit (which is Rs.5,000 in savings bank account & Rs.25,000 in current account) fixed deposit (FD) instruments of Rs.10,000 and Rs.25,000 respectively would automatically be booked through auto sweep and even liquidated through reverse sweep facility on their own. These term deposits are created for a pre-determined tenure of 180 days.
It’s through reverse sweep facility that whenever there is a shortfall of funds in your account and you wish to withdraw a greater amount, the fixed deposit is swept back into the account to meet your requirement. You can withdraw the amount even through ATM. In case you have issued a cheque, it wouldn’t be dishonoured for short of funds. One more benefit is that you would be getting the benefit of interest differential, as the fixed deposits offer higher interest than savings. In current account you don’t get any interest.
So smart saver option allows you to withdraw amount or issue a cheque even though there’s insufficient balance in your account. In short, credibility of cheque as a bond of trust among a drawer, drawee and the payee is maintained.
(The views are of the author & not the institution he works for. Feedback at [email protected])

‘Global Initiative’ to protect Pashmina eco-system launched

Srinagar:  The death of Pashmina goats in large numbers in the Indian Himalayas during past some years is threatening supply of silky cashmere wool. Thousands of nomads rear these goats in the inhospitable terrain of Ladakh, a high-altitude desert known for its dramatic landscape of towering mountains and arid plains. “For past few years, a large number of goats have died of starvation in the Changthan region as the fodder remains buried under heavy snow,” said Babar Afzal, a Pashmina activist while apprising Divisional Commissioner Jammu, Shantmanu, about the situation today.  Afzal, who is working for the rights of the Pashmina community and for saving the Pashmina goat, said a global initiative to protect the Pashmina Eco-System has been launched. He said the initiative is aimed to protect the rights of Pashmina goats, shepherds, people associated with Pashmina and their families, yarn weavers , manufacturers, craftsmen and buyers. Afzal said under the initiative, the Himalayan Abstract Artist & Social Entrepreneur has been hosting art exhibitions, press conferences, conclaves, talks and personal interactions with the stakeholders in an attempt to sensitize them towards the specie and ensure that a larger community participates and celebrates this magnificent specie. Afzal informed the Div Com that the “incredible” initiative was becoming a “National Voice.” Afzal said the initiative works on three point program viz. to preserve the Pashmina Goat, create awareness about the fake Pashmina and create a retail fair trade platform for Pashmina industry. He said the fake Pashmina was destroying the real Pashmina industry in Jammu and Kashmir and under the initiative “we are working to eradicate this menace.” He said the retail fair trade proposed under the initiative would represent over 3,00,000 strong community of shepherds, weavers and craftsmen linked with the Pashmina eco-system, a statement here said. The divisional commissioner Jammu appreciated the work and initiative of Afzal and assured his support to the initiative, the statement said. Babar informed the Div Com that the initiative has a full-fledged program aimed to promote Pashmina goat campaign, Pashmina fair trade expositions, Pashmina goat conclaves and Pashmina testing service for purity. “All these initiatives are being put together to ensure that the Pashmina Eco-system is enhanced,” he said, adding that it would help everyone linked with Pashmina trade. Afzal informed Shantmanu that he will hold a number of Pashmina goat conclaves under the initiative across Jammu, Kashmir and Ladakh. “All the stakeholders including the Department of Animal Sheep Husbandry, Industries Department, Handloom and Handicrafts Department, Tourism Department, Municipalities of J&K, Academic Institutions, Scholars, Chambers of Commerce & Industries and WWF India would be invited to participate and work towards developing the landscape and future of the Pashmina Eco-System,” he said.  “Shantmanu extended his full support to the initiative,” it said. Pertinently, Afazal had recently been in news for serving a legal notice to Kumar Mangalam Birla for stopping the airing of a misleading advertisement regarding Pashmina. On the conclusion of the meeting Afzal presented to Div Com, Jammu an emblem “Care for Pashmina Goat”.

SAJJAD BAZAZ

Dancing stock prices
Though there are certain economic and financial indicators like inflations, interest rate scenario etc that contribute to the movement of stock prices, a lot remains hidden behind this price movement game.

All of us know about the unpredictable and ever changing nature of stock market. It’s the market which lives with a life of its own, reacts to situations and leaves investors either reaping profits or with nothing at all..A range of factors affect the market, starting from company related news to macroeconomic trends like inflation, rupee gaining or weakening, oil prices etc.
One of the most frequent and visible changes taking place in the stock market is the stock price. Market forces lead to fluctuations in the demand and supply of shares, which in turn trigger change in share prices. We hardly see stock price remaining stagnant and it always remains swinging. The prices move up when more people want to buy a stock than to sell it. This situation triggers demand. Prices witness fall when more people resort to selling of a stock than buying it.
So, the theory of supply and demand leads to swinging of stock prices continuously. While looking closely at the demand and supply theory, it becomes visible that greed and fear among the investors plays a major role in driving the stock prices. Investor psychology is that they buy when they feel the stock is affordable and off-load it when they feel the stock is already over-valued. They resort to selling of stock mostly to buyback when the price drops later.
One of my acquaintances raised some interesting queries about the stock prices. What ignites change in demand and supply of stocks? Why do stock prices change? When we try to find an accurate answer to these queries we find a section of believers who believe that it isn’t possible to predict how stock prices will change. While others think that by drawing charts and looking at past price movements, we can determine when to buy and sell a stock. Amid this confusing situation, the only thing we know is that stocks are highly volatile and exposed to rapid change in prices. Precisely, there is no consensus as to why stock prices move the way they do. Though there are certain economic and financial indicators like inflations, interest rate scenario etc that contribute to the movement of stock prices, a lot remains hidden behind this price movement game.
Here let me tell you something about market psychology. There are analysts who link pricing of a stock to the performance of a company. But it is also a fact that stocks of companies with good numbers see their stock price falling. This means, the market psychology has nothing to do with the strong fundamentals of a company. The problem is to know what the market psychology is for a particular stock. Things like the state of affairs of the company & the industry can help you to make an educated guess on market psychology, but it is impossible to know how each and every factor will affect a stock price. Market psychology cannot be read into a chart pattern.
Meanwhile, one of the most common queries about stock price is regarding its impact on the company. Most of the people get confused when the company shows concern over the performance of its stock in the secondary market. Notably, the company that issues the stock does not participate in any profits or losses resulting from trading of its stock. Then, why companies are so obsessed with their stock prices? After a company has issued shares, why should it care about pricing of its stock in the market?
After the shares of a company are listed in the stock markets, it’s the buyer and the seller who make profit or loss out of the trading of shares. During the transaction they set the price of the stock. But this pricing has a profound effect on the company and determines health of the company. Stock analysts say that among many factors influencing stock prices, the most important is earnings by the company which has issued the stock.
Normally a falling price can severely hit morale of a company. There are basically two kinds of falls in shares – general fall and specific fall. If there is a fall in general share prices then the company would not get impacted too much. In a volatile environment, rise and falls in the share prices won’t affect overall business of the company directly. But in a specific fall shares of a particular company witness fall, which may see a sharp fall in share price relative to other companies or rest of the stock market. Why companies witness specific fall of its shares? Of course, the fundamentals of the company may have weakened and investors show their shaky optimism about prospect of the company to perform its businesses in the given situation. In this specific fall in share price scenario, the company becomes vulnerable to a large scale shakeup. Notably, a large fall in share prices could cause wider economic problems.
(The views are of the author & not the institution he works for)

Demand apology, Rs 15 crore for damages

Srinagar: Kashmiri Pashmina artisans have served a legal notice to Idea Cellular asking the company to immediately withdraw its controversial advertisement on Pashmina, demanding Rs 10 crore compensation for “loss of business and reputation” and Rs 5 crore for “suffering pain and agony.”
It has asked the company to publish an apology to the shawl dealers of Jammu and Kashmir and the whole nation about the matter in print and electronic media within 15 days, failing which legal action would be initiated against it.
The notice served has in detail discussed the ways of testing Pashmina and authorized body to test it.
“The only authorized body to test and certify purity of Pashmina is the “Pashmina Testing And Quality Certification Center” which is a certified and authenticated laboratory set up by Craft Development Institute Bagh-i-Ali Mardan Khan, Srinagar, Kashmir,” the notice reads.
“Apart from the above tests there is no such test that is applied to determine the purity/ quality of Pashmina. It is apt to mention here that no certified authority or facility recommends or applies the “Ring Test” that is widely projected by the advertisement of your company,” it added.
According to contents of the notice, the entire visualization of advertisement not only made shawl vendors victim but also misled the entire nation and world. “Traditionally it was the now prohibited Shahtoos shawl that due to its softness and master weaving used to pass through a ring. Again this was neither any test for its authenticity nor genuineness but a feature that demonstrated its fine quality. What is more dangerous is that the synthetic and semi-synthetic low grade shawls manufactured in other parts of India and abroad can pass through a ring sometimes. Thus the entire visualization of your advertisement not only made shawl vendors victim but also misled the entire nation and world,” it adds.
Kashmir Pashmina, according to the notice “has a registered Geographical Indication having number 46 and Certificate number 97 in the classes of Goods 23; Yarns and Threads for Textile use , 24; Textile and Textile goods including bed and table covers and 25; Clothing, as on December 9, 2005.”
The notice has been served through Advocate Syed Sibtain Qadri and Associates.

Banks posting an increase of 16.93 percent over previous year

Srinagar: Jammu and Kashmir has witnessed a tremendous increase in the bank branches across the state with the figures revealing that he people here have more accessibility to banks than in India.

The details received by KNS informed that one bank is available per eight thousand people at present where as In India one bank is available for every ten thousand persons.

Also from the last eight years, the number of bank branches (Public and Private sector) has almost doubled in number.  In the year 2006, the number of bank branches in the state was 856 with the deposits of 19,281 crores. In 2007 the number reached to 867 with the deposits of 21956 crores. The details informed further that the number of bank branches here reached 1002 in the year 2010 with the cash deposits of 34233 crores and also the credit percentage was 46.88. At present the state has more than 1638 branches of different banks with the cash deposits of 64480 crores and 36.51 percent credits per hundred deposits.

The details with the KNS informed that the deposits in the financial institutions (banks) are posting an increase of 16.93 percent over the previous year. In aggregate, the share of private sector banks is 66.12 percent while as the next highest share is claimed by public sector banks of 25.19 percent. Also the share of the scheduled commercial banks in deposits is 95.72 percent and surprisingly only 4.28 percent contributions belong to central and state cooperative banks. (KNS)

Hold protest against government apathy

Srinagar: Police on Saturday detained many civil contractors when they tried to march towards City Centre, Lal Chowk, after staging an anti-government demonstration here at Press Enclave.
Under the banner of J&K Central Contractors Coordination Committee (JKCCCC), scores of contractors led by general secretary Farooq Ahmad Dar gathered at the Press Enclave and shouted anti- government slogans.
Carrying placards, the contractors demanded release of outstanding bills worth Rs 300 crores. They alleged that government is totally ‘insensitive’ towards them.
However, Police swung into action against protesting contactors after they tried to march towards Lal Chowk.
At least six contactors, including Dar, were bundled in police vehicles.
Earlier, Dar flayed the authorities for withholding a whipping amount of Rs 300 crores. He added that official apathy has not only worsened the contractors’ condition but halt many developmental works owing to the paucity of funds in the treasuries here.
Dar alleged that treasuries in Kashmir have been running dry from last 15 days. He added that the money is being withheld for the election purposes while as the contractors have been left to run from pillar to post.
“Bills of hundreds of contractors working with different departments have not been cleared. The money is being drained out for the elections process,” Dar alleged adding that bills worth Rs 300 are pending with the government.
Dar accused Finance Minister Abdul Rahim Rather for creating a financial crunch “just to keep financial commission of India in good humor”. “If our bills are not cleared at the earliest, all the developmental projects will come to a halt,” Dar cautioned.
He added despite completion of works certificate allotted to the contractors by the departments including Finance, Planning and Works in time, hundreds of bills are still pending clearance. Dar threatened that contractors would strike work if the outstanding bills are not cleared soon.