The Elephant Speaks

Bradford and Bingley

2008-10-16T04:21:00.000-07:00

To: The Editor
Published: Asian Voice
Date: 11th October 2008
From: Nagin Khajuria FCCA

Bradford and Bingley bank nationalisation confirmed by Alistair Darling

I refer to your article “Bradford and Bingley bank nationalisation confirmed” by Alistair Darling (AV, 4 Oct 2008, p22). When banks fail, or when confidence in the banking system fails, should Governments take “quick, decisive action”?

How do you value a sinking bank with 2.7 million customers and a £21 billion deposit book? How was £612m value worked out so quickly? What is the net present value of the mortgage debt book the government took over in addition to the £612m it received?

Is it right that both Management and Government decide within hours of panic that shareholders get nothing? £21 billion deposits could make 1% net in banking activities and £21 billion of loans in non-banking activities could make 2%. Total income could be 3% on £21 billion that is £630 million every year. So has the bank been sold off at one year’s net income?

A temporary moratorium of three to six months could be imposed during which time the government could guarantee all deposits without any limit only for that particular bank to enable extraction of maximum value while a right price private buyer is sought. Government can also compete with the private sector in a final auction for disposal at a suitable date.

Commercial banks have ventured too far into non-banking activities. . Should not there be a cap on value of non-banking business? Say 25% instead of the current 50%+?

I reviewed this week the 2007 Annual Report of Capital One Financial Corporation, 8th largest commercial bank the USA.

The segmental Managed Loans, related net income/(loss) and net margins respectively were: Credit Cards US$ 52.1 billion, US$ 2,116m, 4.06%; Auto Finance 25.1 billion, ( 33.8m), ( -0.12%); and Global Financial Services 29.3 billion, 299.4m, 1.02%. Total loans 106.5b, total net income 2,381.9m, and net margin 2.24%. Whereas bank deposits book 73.3 billion, net income 574.2m, a low net margin 0.78%.

The Balance Sheet did not balance. On top of the 106.5 billion Managed Loans, there were additional Managed Loans of 49.5 billion dollars that were described as “Off-Balance Sheet Securitizations”. These involve transfer of pools of loans receivables to one or more third-party trusts and accounted for as sales, although they are not fully sales.

International finance involves global trade, Foreign Direct Investments and Foreign Institutional Investments. It is very complex. There are 77000 Multinational Companies, 770,000 affiliates, which employ 62 million people and generate US$4.5 trillion in value added.

Both Congress and the House of Representatives should not have approved the 850 billion dollar bail out. US Government should have guaranteed bank deposits without limit but only in those institutions which approach them for help while assessing their true potential over a six months moratorium period.

Strict accounting rules have been developed under Basel II, instigated by Bank of International Settlements (BIS) in Switzerland, the central bank of all central banks of key 100 countries. Under US accounting rules, they were not mandatory for Capital One Bank.

Nagin Khajuria, FCCA
Director, Simplification Made Simple Limited
Chartered Certified Accountants & Registered Auditors
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Inspired Obama

2008-10-16T04:12:00.000-07:00

To: The Editor
Published: Asian Voice
Date: 16th October 2008
From: Nagin Khajuria FCCA

Obama cites Mahatma Gandhi to back his call for change

Your article “Obama cites Mahatma Gandhi to back his call for change” (AV 11 Oct p35) is interesting in the sense the he appeals to the American nation as a whole “to rededicate themselves every day from 2 October 2008, Mahatma Gandhi’s birthday, to 4 November 2008, U S election day.”

For sure, these 33 days are becoming very painful days all over the globe. It was always believed that banks, at least, those which were known to be “first class banks” never, or hardly ever, fail. May be all nations should reflect deeply on change as current system is too costly for 60 to 70% of the world population.

Obama also had two other men he most admired: Abraham Lincoln and Martin Luther King Jr. He took a lot of inspiration from the civil rights movement and the way the movement brought ordinary people in extraordinary positions of leadership. It struck him that lasting change came from the bottom up and not from the top down according to “From Promise to Power” by David Mendel, pages 200-01.

On one hand, we have individuals, businesses and governments who have surplus cash and want to find suitable assets where they can invest their surpluses and make some return for a rainy day. On the other hand, there are individuals, businesses and governments who want to borrow money so that they can make better use of it because of their ability to create real wealth. Financial intermediaries connect these two groups.

Currently, because paper wealth is probably anything between 8 to 24 times the underlying asset and value of a business, an individual, a government, or a country as a whole, it is impossible to figure out where the weaknesses are and where the strengths are.

One solution could be if competition reform laws were passed where no business could have a larger than 10% share of the market, both in the public sector and the private sector, so that at least there are 20 players competing each other. Banks should be either fully private or fully public owned.

The cost of credit needs to be reduced drastically. This cost is not only the interest rate differential but all the hidden charges and commissions that are paid to financial intermediaries to broker between the savers and the borrowers when big money is raised.

A country’s exchange rate strength is the supply of or the demand for its currency. When exports are more than imports, the demand is higher than supply. When imports are more than exports, the supply is higher than demand. In the former case, the currency becomes stronger. In the latter case, the currency becomes weaker. However, when speculators start hedging on foreign currency rates, the fundamentals are changed. Why not settle imports and exports in the currencies your countries live in rather than use a third country’s currency to avoid the need for hedging in the first place?

Nagin Khajuria, FCCA
Director, Simplification Made Simple Limited
Chartered Certified Accountants & Registered Auditors
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India and The Global Financial Crisis

2008-10-01T15:00:00.000-07:00

To: The Editor

Published: Asian Voice

Date: 1st October 2008

From: Nagin Khajuria FCCA

I do not agree with your headline article “World markets on roller coaster, India sits pretty” (AV, Vol 37, Issue 21, 27 Sept, p1). Indian banks and Indian business have followed herd of G8 nations for too long. They now need to expand deeper into non G8 nations economies, learn other key foreign languages and their business models. The demand from G8 nations is likely to go down for Indian exports. That happened during the Asian crisis in 1997. That was a puncture in the tyre. This is engine failure.

Current events remind me of the proverb: “You can fool some of the people all of the time, all of the people some of the time, but you cannot fool all of the people all of the time.”

Some examples are:

The word “opinion” in Audit Report is fundamentally flawed. It should be “assurance”. Annual reports run into 300+ pages and are impossible to understand by shareholders. It turns out they were useless.

During the quarter ended 30 June 2008, 120 Indian companies set aside RS 8,900 crore for currency fluctuations, exotic derivative products and mark-to-market losses to hedge their exports. Surely, historical accounting is the way forward with any changes in market values (that move up and down 100% every year) to be stated by way of a note only. IFRSs need to be restructured.

By changing interest rates too frequently, central banks and their political masters have knowingly or unknowingly given wrong signals to the market economy. A culture of minute-by-minute speculation in all these products is being nurtured all the time through advanced information technology and communications.

The world financial crisis is blamed on sub-prime mortgages and very little has been said about the hyper activity of mergers and acquisitions, re-invented by private investment banks during the past 25 years with disproportionate level of debt finance as opposed to equity finance as publicly quoted company board of directors became poorer managers.

All these years a belief has been rammed down our throats that private sector is “efficient” and public sector is “inefficient”.

As a shareholder of Vodafone plc, I was able to get into their official website two years before Arun Sarin became CEO. The Balance Sheet had an asset value of £100 billion pounds that included goodwill value of £30 billion.

Based upon my understanding from the accounts, of the company’s future prospects, I sent an email to the Vodafone and the Accountancy Age Letter to the Editor, stating that the Auditor was wrong in signing off the Balance Sheet and justifying keeping the goodwill value on the Balance Sheet based on the next 10 years revenue stream forecast in Note 1.

My letter was not published. Arun Sarin became the CEO two years later and wrote off £28 billion goodwill in the following year.

Finally, as a policy holder in Standard Life, I was strongly opposed to the concept of demutualisation. Mutual building society concept is a business model India should adopt for India’s housing boom.

Nagin Khajuria, FCCA
Director, Simplification Made Simple Limited
Chartered Certified Accountants & Registered Auditors
W: www.c-o-t-m.com
E: info@c-o-t-m.com

Identity and Non Violence

2008-10-01T06:24:00.000-07:00

Letter to the Editor of Asian Voice
Published: 27 September 2008, page 4.

Dear Editor

Common thread of violent deeds and instigations

In the last Asian Voice issue (20 Sept), I read several articles that had a common thread of violent behaviour in thought word or deed on the basis of religious identity:

• Christians or Maoists killing Swami Laxmananda and his four disciples on the holy day of Janmastami on 23 August 2008 (p11);

• Indian Mujahideen claiming responsibility of 5 Delhi serial bomb blasts killing 30 innocent people last Saturday during holy Ramadan (p1);

• Fatwa issued against Salman Khan’s family for celebrating Ganeshotsav at their home (p29);

• Yorkshire Coast College changing their college calendar from the terminology “Christmas and Easter breaks” to “End of Term breaks” ostensibly in a bid to avoid offending students from other religions (p7).

All of us tend to identify ourselves by the society we live in, our culture, our religious and other values and beliefs, our civilisation, etc. There is nothing wrong with that. However, when good relations among different human beings are identified in this singular way to the exclusion of other ways, human beings are deeply miniaturized and deposited into little boxes.

We must realise that all of us have multiple or plural identities. For example, I was born into a Hindu/Jain family in Sudan, a Muslim country. I was educated there by Italian Catholic missionaries (age of 8 to 18). Then I worked up to age 25 at the U S Embassy in Khartoum under Jewish or Protestant bosses. For interests, I went to the British cultural centre to learn Scottish country dancing and to the British Council to watch or take part in plays, such as Dial M for Murder, Importance of Being Ernest, etc.

I never saw people only as Hindus, Muslims, Catholics, Jews, Protestants, Buddhists, etc. Again, I never saw them solely as Italian, American, Arab, Indian, etc. Rather I saw how interesting they were as friends, colleagues, fellow sports players, or other hobbies and interests.

My best ACCA studies friend was El Hadi El Gibriel who worked at the Ministry of Finance and we studied accountancy together in the evenings. After 40 years, I visited Khartoum in February 2007 and looked him up. He still remembered me and invited me to go to his six two-bedroom block of flats residence on the Tuti Island. This island is right in the middle of the confluence of the White and Blue Nile in Khartoum. The two rivers came from Uganda and Tanzania, joined as one river near the Tuti Island. It proceeded to Egypt from there as one river called the Nile. The view from over the bridge of the confluence was magnificent: blue colour water meeting grey colour water.

He took out a photograph of mine I had gifted to him 40 years ago within 15 minutes of our meeting from about 100 photos he had kept in a Cadburys chocolate round tin box. There were tears in our eyes and we embraced each other. His two wives and six daughters live there in the six flats. The younger wife cooked fresh lunch for both of us. Our only relation was two students helping each other in their studies.

This photograph, with my own handwriting dated on the back, is attached as a living proof of this encounter. I left for UK in that same month of September 1967.

My plea to all fellow human beings is let us embrace all races and all religions and all cultures and open up our minds and enjoy the diversity rather than use it to blow each other up. All including even the Taliban have the right to live and breathe on this planet and no one, I repeat, no one, can take this right away from them. It is the Khyber Pass rather than Taliban that has been of geopolitical interest in Afghanistan since forth century BC when Alexander the Great discovered that route. Then it was Arabs in the seventh century and Jengis Khan in the thirteenth century, followed by the British, then Russians and now Americans.

We now live a global village. All of us have plural identities. Should we not see other human beings in different ways according to the circumstances?

Oscar Wilde once made the enigmatic claim “Most people are other people”.

With suitable instigation, a fostered sense of identity with one group of people can be made into a powerful weapon to brutalise another. Actively promoted sectarian hatreds can spread like wildfire.

All people involved in the above four incidents should read economist and Nobel Prize Laureate Amartya Sen’s recent book called “Identity and Violence – The Illusion of Destiny”: they may stop their violent actions in thought, word and deed and embrace other people.

Nagin Khajuria FCCA

Director, Simplification Made Simple Limited
Chartered Certified Accountants & Statutory Auditors
Co. Reg. No. 03446745
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E-mail: info@c-o-t-m.com FCCA

Tension in Darfur and It's Relevance to Oil Supply Security

2008-10-01T04:35:00.000-07:00

Published on New York based website: https://news.glgroup.com/CM/analysis/PostDetail.aspx?pid=16044 on 4 September 2007

“Tension in Darfur and its relevance to oil supply security”

Implications

There is some truth in the fact that the Arab North looked down upon the Black South in the 1950s and 1960s when I grew up in Sudan. Then there was civil war and thousands of lives were lost and there were thousands of refugees.

But then USA, Europe or United Nations was not all that concerned. Now there is oil in Sudan. Now China is in Sudan. Partly, there is a perception that the current media and European leaders hyper concern about the plight of Darfurians is “crocodile tears”.

Where were these leaders when the same atrocities happened in the 1950s and 1960s?

Where Black Africans not important then?

The efforts to secure oil supplies should not tarnish the West’s image of fair play by harping too much on the crisis in Darfur. Yes there is some crisis. But it is not brought about by deliberate wrong doing. It is mainly brought about by scarcity of land and resources and poor people fighting with each other for share of a small pie, lack of rain and draught, poor cultivation skills.

Analysis

If USA and Europe are not extremely truthful in the words and deeds in Darfur, then their efforts will be discredited and they will not achieve the objectives they are hoping to achieve. It will be another Iraq and it will bring discredit to US and Europe.

Nagin Khajuria FCCA

Director, Simplification Made Simple Limited

Chartered Certified Accountants & Statutory Auditors
Co. Reg. No. 03446745
T: +44 (0) 20 8346 3033
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Congratulations to Asian Voice

2008-10-01T03:42:00.000-07:00

Editor: Asian Voice

From: Nagin Khajuria

I want to congratulate the Asian Voice editorial team on the amazing variety of topics covered every week for a £30 yearly subscription. It must be the best value for money of any weekly newspaper in the UK by far.

The two articles (p20-21 & p24-25, Careers in Accountancy July 2008, AV 2 Aug) on non-domiciled persons in the UK and tax guidelines on how to cope with the new annual flat rate of £30,000 tax levy to continue having the privilege in living in the UK without declaring their worldwide income makes useful reading.

By sheer coincidence, the above Asian Voice articles published on 2 August were preceded by Accountancy Age weekly magazine leader article “Hartnett gunning for tax haven advisers” on 31 July. The outgoing chairman of H M Revenue & Customs warned there that HMRC would launch criminal prosecutions against accountants who have slashed clients’ money in offshore tax havens to duck paying UK taxes.

These new rules after 90 years of tax holiday may have indirectly influenced both doms and non-doms, to re-consider their rights and responsibilities in the overseas countries and/or their use of tax havens. It may be fairer to pay their due taxes in the foreign land that is bestowing upon them that income and/or capital gains.

After all, if they pay their taxes overseas, then the foreign tax would be available globally as a credit or offset against UK tax liabilities. Even a U K tax refund is feasible under these circumstances.

£30,000 flat rate grossed up at 40% works out at £75,000 income or capital gain. Up until now, the non-dom has not paid any tax in the foreign country. Suppose the tax is 20% on this £75,000 overseas. The taxpayer pays this £15,000 overseas.

As a dom, his gross income in UK is, let us say, also £75,000; he adds another £75,000 as his foreign income. He claims £5,000 personal tax allowance, pays 20% on the first £40,000, and 40% on the next £105,000. Total tax payable in the UK is £8,000 plus £42000 that is £50,000, less foreign tax credit of £15,000; he pays £35,000 in the UK and £15,000 overseas.

As a non-dom, the same individual would not declare his income overseas, and pays on UK income of only £75,000. This works out at £5,000 tax free, 20% on the next £40,000 and 40% on £30,000. He pays a total of £20,000 plus a non-dom flat rate tax of £30,000. He ends up again paying £50,000, but with the additional possibility of tax, penalties and interest overseas when he gets found out overseas.

In any case, now is the time to urgently open four separate bank accounts overseas and four separate bank accounts in the UK: 1. Accumulated trading Income overseas up to 5 April 2008; 2. Accumulated capital gains overseas up to 5 April 2008; Accumulated Interest Income overseas up to 5 April 2008; 4. accumulated other savings etc. overseas that cannot be clearly classified for the time being. Same corresponding accounts should be opened in the UK. Movements in subsequent years should strictly follow the above four mirror bank accounts in the UK in future tax years.

Consideration should be given to equalisation of all income, savings and capital overseas among all family members up to 5 April 2008 and a decision taken that the entire family members no longer wishes to consider themselves non-doms. Their next tax returns would confirm that they no longer wish to be in the non-dom category. As income and capital gains are spread over several persons, and as full advantage is taken of personal allowances as well as annul capital gains tax exemption for each family member, the family as a whole may end up paying far less tax than ever before even if they declare all their worldwide income and assets.

Finally, there is a distinction between adults who are under 18 and those over 18. Those under 18 lose personal allowance and capital gains tax exemption but do not have to pay the £30,000 flat rate if a decision is taken to pay the £30,000 for those who are over 18.

Each tax payer or each nuclear or extended family circumstance is unique but the above are at least some useful tax planning guidelines.

Nagin Khajuria, FCCA
Director, Simplification Made Simple Limited
Chartered Certified Accountants & Statutory Auditors
Co. Reg. No. 03446745
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"Deal" Wins

2008-10-01T03:15:00.000-07:00

Letter to the Editor Asian Voice

Published on 2 August 2008 on Page 5.

by Nagin Khajuria

‘Deal’ wins

I am really glad that the United Progress Alliance under Manmohan Singh has won over the Bhartiya Janata Party and Communist Party Alliance to get the Indo-US Nuclear Accord ratified by the Indian Parliament.

Originally I was against this Accord. On reflection, I am now in favour. My reasons are as follows:

• India has never been part of the Club of powerful nations. It can now use its influence by being an insider rather than an outsider.

• There are 8 to 9 countries that have nuclear weapons. Other 20 nations could develop such weapons if they wanted to. By agreeing to have India’s nuclear facilities to be inspected by the international community, India is effectively discouraging nuclear weapons proliferation, which is a good thing.

• India knows the damage it can inflict upon itself if it does not realise that there will always be nations who will try to break it by the well known method of divide and rule. Recent bombings in Ahmadabad and Banglore remind us of that. May be we should have a few states in India where meat is prohibited a) to encourage other nations to follow India and b) to discourage violence to animals in addition to humans.

• That is ALSO why the inquiry into vote rigging, bribery of MPs, bullying tactics, should be dropped otherwise those who may have tried to divide and rule India may have succeed sooner than later.

• The bribery charges against MPs in this voting reminds me of the joke that when other countries complained to God why He had bestowed so much upon India, God responded and told them: “Do not worry; I shall put more corrupt people there.”

• All parties should now stand united about this historic decision and make the most it by expanding its power generation capacity through nuclear reactors.

• The important aspect they should remember is health and safety. The explosion in Chernobyl story is not over yet. Currently they are building a huge aircraft hanger like construction costing 800 million dollars to cover reactor number 4 remains that had exploded 20 years ago. No 1, 2 and 3 were decommissioned in year 2000.

• India must now also concentrate on all other sources of power generation.

• It should get on with power generation through more advanced capture of biomass (plant and animal waste).

• Sea based and lands based wind farms can generate a fair amount of electric power. In Denmark, wind generates about 20% of all its electricity.

• Panels covered with photovoltaic cell capture the sun at a solar park near Leipzig, Germany. With 33,500 panels, it is one of the planet’s largest arrays.

• Solar energy costs have gone down a lot over the past 30 years and further reductions are likely. Some countries have laws requiring new building to have solar energy.

• When we drove extensively in Andalucía, Spain, a couple of years ago, we so hundreds of wind mills generating electricity for people and/or mass production of tomatoes in hundreds of small green houses, one after another for miles and miles.

• Readers of Asian Voice need to study three very interesting articles I recently came across that argue some of the above points in more depth that I can do here.

• “Powering the Future: where on earth our energy-hungry society can turn to replace oil, coal, and natural gas? By Michael Parfit; and

• “Living with the Bomb: it has been 60 years since Hiroshima and Nagasaki. Today nuclear weapons stoke nations’ dreams of power and give their citizens nightmares” by Richard Rhodes; (National Geographic August 2005)

• “Inside Chernobyl plus Nuclear Power Reconsidered” by Richard Stone (National Geographic April 2006).

• They all make a lot of sense and we should learn from them.

Nagin Khajuria, FCCA

Director, Simplification Made Simple Limited
Chartered Certified Accountants & Statutory Auditors
Reg. Off. 54a Granville Road, London N12 0HJ
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Rethink Merger Approval

2008-10-01T03:03:00.000-07:00

Letter to the Editor of Accountancy Age

Published on 10 July 2008 on page 12:

Rethink merger approval

I fully agree that the 10th anniversary of the merger between Price Waterhouse and Coopers and Lybrand should make us rethink how such mergers are approved (26 June page 1).

At that time I felt very strongly that those from small audit firms should be allowed to also review the 700-page justification document sent to the EU Competition Commission and the fact that Financial Reporting Standards were not fully in place to address global issues and these FRSs should be addressed before merger could be considered.

The recent credit crunch where banks have written off more than US$ 400 billion on long term loans in the past six months indicates that the Big Four, because of their size, have not been able to discover all these weaknesses over the past ten years.

It is not a healthy audit environment. We need about ten big audit firms, especially as the Big Four audit 97% of the world’s major companies.

Nagin Khajuria FCCA

The Shorter and Simpler the Better

2008-10-01T02:47:00.000-07:00

Letter to the Editor of Financial Times

Published on 24 January 2008

From Nagin Khajuria

The letter from D. R. Myddelson, emeritus professor of finance and accounting (January 21), calling for much shorter annual accounts and reports makes a lot of sense. Apart making them shorter and including only historical data, companies should use percentages instead of absolute numbers so that ordinary shareholders understand them better.

Nagin Khajuria FCCA

Director

Simplification Made Simple

London N12 0HJ
www.c-o-t-m.com

PWC merger

2008-10-01T00:56:00.000-07:00

From: Nagindas Khajuria

Sent: 01 July 2008 13:54

To: 'Accountancy Age Editor'

Subject: Boyle brands PwC merger 'unfortunate'

Sir

I fully agree with Mr Boyle, CE of Financial Reporting Council, that the 10th anniversary of the merger between Price Waterhouse and Coopers and Lybrand should make us re-think how such mergers are approved. At that time, I felt very strongly that outsiders like myself who are from smaller audit firms should be allowed to also review the 700-page justification document that was sent to the EU Competition Commission.

I then argued that the Financial Reporting Standards then were not fully in place to address the global issues, etc. and those should be addressed first and the mergers could be considered a few years later. KPMG and Ernst & Young had also applied at the same time.

The recent credit crunch in the banking sector where hundreds of banks have written off over 400 billion U S Dollars on long term loans, just in the past six months, indicates that the Big Four, because of their size, have not been able to discover all these weaknesses over the past 10 years. It is not a healthy audit environment. We need about 10 big audit firms, esp. as the Big Four audit 97% of the entire world’s major firms.

Your paper may wish to publish my letter dated 7 February 1998 and the EU Competition Commission reply dated 12 March 1998 verbatim in your newspaper. It may make interesting reading for all. Both are attached in PDF format.

Regards

Nagin Khajuria, FCCA

Director, Simplification Made Simple Limited

Chartered Certified Accountants & Statutory Auditors

Reg. Off. 54a Granville Road, London N12 0HJ

Co. Reg. No. 03446745

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Education,Tax and Culture

2008-09-04T09:31:00.000-07:00

Published: Asian Voice

I refer to your editorial “Another young victim of gang culture” on Page 3, 30 August 2008. The death once again of a young person in Hackney, falling from the 7th floor of a block of flats, to escape from a hooded gang, makes us wonder what has gone wrong.

Some recent statistics and social trends may provide some clues:

OECD (Organisation for Economic Cooperation and Development) carries out assessment of 15-year olds. The UK dropped from 4th to 14th place in science and mathematics in 2006 compared to 1998.

It may not all be bad schools and bad teachers. It could also be the excessive use of the Internet and video games. Parents need to switch off that television and video games and spend more time with their children.

Again it could be both parents working to make ends meet. Western economies should be restructured so that it should be possible for the idea of a male being the sole bread winner and the female being the housewife and the mother economically viable if that is what the young family wishes to chose to do. This is not something that should be discouraged by media or business or government as unthinkable or unworkable.

Almost 50% of young people never read any books. Reading on the Internet is not the same as real reading. And even on the Internet, only one out of 8 Americans read news on the Internet. Approximately, half of men from 18 to 34 spend nearly three hours a day playing video games. The same trend may come to the UK.

In a recent survey in America, two thirds of young people were unable to tell where Iraq was in a world map with all the countries of the world clearly marked. Nearly half of them think it is not necessary to know where a country in which important news is being made.

According to Susan Jacoby, whose book called The Age of American Unreason is being published this month, there is a severe intellectual crisis in America and UK.

Finally, the idea of independent taxation should be revisited and joint tax return for husband and wife should be re-introduced. In India the tax laws have the concept of a Hindu Family joint tax burden structure which could be copied in the UK that includes all family members. Individually, we have become too selfish.

Vote of Confidence to Decide UPA's Fate

2008-07-29T14:29:00.000-07:00

Date: 26th July 2008

Published: Asian Voice

Vote of Confidence to Decide UPA's Fate

I refer to your editorial comment article “Vote of confidence to decide UPA’s fate” (AV 19 July p3) on the decisive vote in the Indian Parliament as regards the Indo-US civilian nuclear accord.

What is the better option for India?

In the eighties, Rata Tata, Jamshyd Godrej, Rahul Bajaj and Tarun Das, the Head of Confederation of Indian Industries used to go every year to the USA and try to meet CEOs there to get business. It took them one year to meet Jack Welch, CEO of General Electric who initially said he was not interested in India. India was corrupt. He did not want to do business with India.

It turned out that GE was one of the first American companies that started outsourcing work to India and now India is a world leader in information technology, business processes and knowledge processes outsourcing. A lot of credit goes to USA Inc.

This time the US has come to India to export their nuclear fuel processing technology. Should India say no? Or should it say yes and pay billions of dollars only recently saved up in dollar reserves? Is it a luxury or a necessity? I believe it is a luxury India does not need at this stage of its industrial development.

What if the next Albert Einstein is an Indian scientist? India could then export civilian nuclear fuel processing technology rather than import it, or at least do both.

Will this accord also help Indian national security and its borders from invasion?

The Indian government’s Kirit Parikh report on integrated energy policy for India has forecast that even if a 20-fold increase takes place in India’s nuclear power supply by 2031-32, the contribution to India’s energy mix is at best expected to be 4-6%.

Should India put all its eggs in one basket? Apart from US, France, Sweden and Finland currently have the latest technology in civilian nuclear fuel technology. Why not join the European Organization for Nuclear Research (CERN) based in Switzerland whose members include USA, most EU members, Israel, Japan, Russia and Turkey in lieu of a bilateral agreement with USA and the International Atomic Energy Agency?

The West has been wasteful in the use of energy for 50 years. Western habits at home, in modes of travel by car, train and plane, consumerism, over zealous production of manufactured goods are likely to change drastically as society becomes more caring towards the planet earth. The savings in the West may cushion the increased energy demand in the East.

Let India not hurry or be pushed into an agreement where its Parliament appears to be split in the middle. This is non-partisan issue and all MPs should vote in India’s long term national interest when they meet to ratify or reject this accord.

Nagin Khajuria FCCA

Time Management

2008-07-29T05:27:00.000-07:00

Time Management

Stephen R Covey became famous when he wrote “Seven Habits of Highly Effective People” on simple principles of prioritising tasks and time. He also founded, with his co-founder, Hyrum Smith, “Franklin Convey”, an international time management business with annual sales of $650 million. Some 50,000 people attend its seminars each month.

Time is the only resource that renews itself daily, yet once lost can never be replaced. Samuel Smiles was probably the first author who wrote about time management in 1859, with his phenomenal bestseller called “Self-Help”. This book has never been out of print since its publication 145 years ago.

As Smile put it: “Lost wealth may be replaced by industry, lost knowledge by study, lost health by temperance or medicine, but lost time is gone forever.

In children’s literature, a tale called “The Crown of Success”, portrayed hours and minutes as silver and copper coins that could be invested well or badly, or stolen by “procrastination”, “the thief of time”.

Arnold Bennett wrote “The Old Wives’ Tales” in 1908. In the same year, he sold a publisher the idea of a book called “How To Live on 24 Hours a Day”. In it, he advises how to carve out another day in a week in which you spend five and half days commuting and working. This extra day could be used for various improving exercises, such as training the memory, learning philosophy, studying music or economics, or reading classics.

On other side of the Atlantic, to-day’s re-engineering processes, lean production techniques and globally standardised products, such as the Big Mac, are all part of the legacy of time guru Frederick Winslow Taylor. It was in 1911, that he published his findings about the “one best way” to perform manual tasks in a series of academic papers.

Frank and Lillian Gilbreth, the husband-and-wife team who used early moving-picture technology to develop “time and motion studies” were both engineers and great contributors to scientific time management.

In 1975, Claus Moller founded TMI, Time Management International, and was the first to offer a comprehensive time management system. It has grown into a “global learning” consultancy with independent companies licensing its programmes and products in 36 countries.

Work-life balance, the underlying issues such as heavy workloads, email overload---too much to do and too little time---and people struggling with goal setting, fire fighting and managing interruptions are still the same as they used to be.

Learning about time management is not a waste of time. Making time and learning to make the most of your time in 2005 could change your life in more than one way is our message to readers. Best Wishes for a Bright Future.

Nagin Khajuria

Exxon Mobil: Understanding "Record Profits"

2008-07-29T05:23:00.000-07:00

From: Nagindas Khajuria

To: The Editor Business

Sent: Monday, 31 January, 2005 9:02:10 AM

Subject: Exxon Mobil Profit Record Profit of $24 billion

Sir

I read your headline article on Exxon Mobil record profit of $24bn in 2004 with great interest having worked as an accountant in the oil industry for 12 years. This figure is meaningless as petroleum accounting is very complex and can easily produce misleading results: the accounting postulates (going concern, periodic determination of income and financial position and monetary unit), the accounting principles (matching principle, realisation principle, cost principle and conservatism) and the accounting standards (revenue versus capital expenditure, deferred tax and many others) applied by various oil companies are wide apart and there are no universal petroleum accounting practices that all of them adhere to.

In addition, there are always annual accounting adjustments every year for one reason or another that would make Exxon Mobil’s past six years’ average perhaps only slightly more meaningful at $16 billion pa. But even that is meaningless except as a % of average turnover or average capital employed. Just one year before Enron collapsed, Mac Kinsey Quarterly Report stated that Enron was then growing at 20% p. a. over the previous five years and it was a company “to buy in” and how misinformed such a prestigious Consultancy Firm was? Their research was not thorough enough.

One example I would give you is petroleum reserves. I do not dispute that it is a major asset of a company, nor do I dispute that its value should be measured. However, firstly estimation of the quantity of reserves is a highly subjective process: a) because several years of operating a reservoir may be required and b) equally competent engineers may still arrive at substantially different estimates. Secondly, under present ‘proration practices’ (laws and/or agreed practices where quotas are made not to produce more than demand on a rolling monthly basis), a reservoir may produce as long as 50 years into the future at varied, and sometimes unknown, price levels. This alone makes the application of ‘value principle’, rather than ‘realisation principle’ a technique of limited use.

In its simplest form, the objective of standard accounting practices is accomplished by three closely related processes: (1) measurement of the effects of transactions, (2) arrangement of related data, and (3) communication of the results to interested parties. Exxon Mobil’s record to date on these issues has not been adequate.

Nagindas Khajuria

Big Brother and the EU Art of Double Speak

2008-07-29T05:19:00.000-07:00

From: Nagindas Khajuria

Publication: The Business

Date: Wednesday, 30 June, 2004

Subject: Big Brother and the EU Art of Double-Speak

Sir

Your article by Allister Heath (Page 16 27/28 June) raising concern by business about EU charter, esp. about the Charter of Fundamental Rights, is preposterous.

What is wrong with the six articles of the charter that he mentions as of particular concern to business? Namely, "right to work", "worker's right to information and consultation", "rights of collective bargaining and action", "protection in the event of unjustified dismissal", "fair and just working conditions" and "the right to reconcile family and professional life"?

If business does not understand that these rights go hand in hand with higher productivity and accelerated economic growth, then business does not understand the difference between being authoritarian and being democratic. For the last 25 years, the Conservatives and now Labour have peddled the wrong policies and wrong message to the business community, bringing down UK productivity from being 6th in world league tables to 23rd.

Finally, UK is controlled by US 60% of the time and by EU 20% of the time. Why is he bothered so much about EU control and not US control?

Nagindas Khajuria

Oil Reserves

2008-07-29T05:15:00.000-07:00

From: Nagindas Khajuria

Publication: Asian Voice

Date: Friday, 27 April

Subject: Oil reserves

Your article on oil reserves and discovery of oil in Gujarat is interesting (Asian Voice 28 April to 4 May, 2007). My belief is that the Gujarat/Mumbai quantities would be quite small by world standards to result in strife, war, etc. like elsewhere.

The latest available statistics for 2000-01on India are: Oil reserves: 674, on-shore production 11.7 and off-shore production 16.6 Mn. tonnes respectively. India's energy use (oil equivalent) for that year was 531.5 Mn tons. The entire world's energy use for that year was 10,009.6 Mn tons. India thus used 5.3% of world energy produced. USA used 2,281 Mn tonnes (23%) and China 1,139 Mn tonnes (11.4%).

Worldwide oil reserves 2005, according to BP statistical review of world energy, were: Africa: 8%; Middle East 57%; US and Canada: 15.5%; Latin America: 9%; Former USSR: 6%; Asia Pacific: 3% and Europe: 1.5%.

World conflicts arise principally because the ratios of what is already produced to what still is remaining underground and what is yet to find are so different. E.g. US reserves were just over 28 billion tonnes, but 26 billion have already been produced. Iran's reserves were just over 18 billion tonnes and only 7 billion have been produced to date. Saudi Arabia has 40 billion tonnes out of which 12 billion has already been produced. What is yet to find is very little by comparison to what has already been found.

Exploration activity is becoming very expensive in the sense that companies are desparately trying to find the last trace of oil trapped underneath as the discovery rate is falling much faster then the production rate. Over the past 20 years, the discovry rate has fallen from about 80% of production rate to about 20% according to Dr Mamdouh G Salameh, an international oil economist (1999 OPEC review).

Nagin Khajuria

Caste Wars in the UK

2008-07-29T05:11:00.000-07:00

From: Nagindas Khajuria

Published: Asian Voice

Date: Saturday, 15 September, 2007

Subject: Caste Wars

Anuja Preshar's article (AV, Page 15, Sep 3) is extremely interesting. She is writing about the efforts being made by UK, US and German governments, 16 UK members of parliament and charities such as Christian Solidarity Worldwide, CARE, Christian Aid, Konrad Adenauer Foundation, Christian Democrats and the International Democratic Union to target "Scheduled Castes and Scheduled Tribes" in India. Their objective would be to "help them and give them aid" with a view to convert them Christianity and/or just to improve their lives and their future.

It is unfortunately still true that the upper classes, Hindus, Muslims, Christians and others still ill treat and discriminate against the lower and/or poorer classes, although not to the extent practised in the past. This is a challenge to this group to care and uplift these people in competition with the Europeans who could unwittingly destabilise the nation.

It is also unfortunately true that most of the above as well as others, who are now known as "Other Backward Classes" (OBCs) do not know how to read or write. Those known as "SCs" are scheduled caste, mainly harijans and, those known as "STCs" are scheduled tribal castes, also known as "adivasis".

Fortunately, our leaders had more vision than the above Europeans when India became independent. Part X of the Indian Constitution relates to "The Scheduled and Tribal Areas". Schedule V applies to the administration and control of Scheduled Areas (backward areas) and Scheduled Tribes in any other state other than the States of Assam, Meghalaya, Tripura and Mizoram per article 244. The provisions of Schedule VI applies to the latter four states per article 245.

The Constitution enabled the Central and State Governments to implement positive discrimination in education, welfare, politics, health, etc. This has been practised for almost 60 years and the above groups size of those below the poverty line has been reduced from about 50% to 60% to 20% to 30%. There have been annual or periodic reports on their conditions and there are two Commissions, one for scheduled tribes and one for scheduled castes who regularly monitor their welfare.

Recently, there have been some problems when illiterate persons are granted seats in parliaments and state governments because of the reservation system, and some of these people are now known as "vote banks" and are being manipulated by the more educated or wealthier members of parliament, etc. Those who engage in such practises should surely be prosecuted and punished heavily. Still this should not let us lose the wider benefits the lower castes have benefited from overall. Minorities, esp. black and brown skinned, continue to be discriminated against specially in Europe and U S, Canada, and Australia. Perhaps it is time they introduce some positive discrimination in their favour to counter balance the prejudice.

Finally, I believe the Indian Constitution has provided for abolition of affirmative action and reserved seats for scheduled castes and tribes 60 years from the inception of the Constitution. So time may be coming soon when all Indians will be equal in the eyes of the law in India.

Nagin Khajuria

Glimmer of Hope on Indo US Nuclear Deal

2008-07-29T05:08:00.000-07:00

From: Nagindas Khajuria

Published: Asian Voice

Sent: Saturday, 3 November, 2007

Subject: Glimmer of hope on Indo-US nuclear deal

Sir,

Your Comment article (P3, AV 3 Nov) refers to senior figures in the Opposition BJPmaking soothing noises about the Indo-Nuclear Deal to Congress sees a glimer of hope. AV editorial continues to take the view that Indian growth is severely handicapped by shortage of power and that this deal is in the national interest. My belief is that both BJP and Congress are naive and mistaken in not realising that the deal is against India's national interest, whether you look at it from any of the political, economic, social, environmental, military or technology dimensions.

Political: Britain has a "special relationship" with USA. India will be perceived to have entered into a "special relationship" with USA. India is still 137th in terms of human development index compared to USA. Do we need a big brother at this stage of our development? India is not Iraq or Iran, but if we sign the deal, 100 years own the line, our fate will be similar to Iraq or Iran.

Economic: France now gets close to 80% of its electricity from 59 nuclear plants operated through the state owned Electricite de France and a private partner. USA has 104 plants but none ordered since 1970s. Finland is now building its 5th nuclear plant, the largest in the world. Did these countries sign a "bilateral nuclear deal" with USA?

Social: India currently scores on all three counts. Politically it is free and democratic. Economically, it is prosperous and is making itself more equitable. And socially, it is relatively peaceful and cohesive. Most Western countries have democracy and prosperity, but they suffer from social disintegration. The nations in the East have prosperity and social cohesion, but they suffer under political authoritarian regimes. If the deal is signed, we shall lose this unique position scoring all the three counts forever.

Environmental: The key advantage of nuclear power is give cleaner fuel and bridge the gap between fossil fuels and alternative energy sources. Current annual CO-2 footprint is 25.9 tonnes (US resident), 11.6 tonnes (UK resident) and 0.9 tonnes (African resident). With such high foot print, it makes sense to have nuclear plants in US and Europe, but not so in India or Africa. To improve India's energy needs and control pollution in India, there are at least 15 other alternative energy sources apart from nuclear that India could implement.

Military: After the Indo-Nuclear Deal, US and Western Europe, want to sell fighter bombers to India with nuclear war heads as a counter measure to the threat of invasion from China. This fear is instilled in Indian minds, but then why could the Chinese not think, that if India had such nuclear military power, India may not invade China? This is a old divide and rule tactic on a very grand scale. 170 million people were killed in the 20th century in wars. Do we want to continue this in the 21st century?

Technology cooperation: For the past 50 years, USA may have cooperated, for example, in computer software and business process outsourcing services extensively with India, but so it has in computer hardware, in electronics, and manufacturing with China. Why or how come suddenly India needs an Indo-Nuclear Pact to somehow continue this technology transfer, while China does not. Hardware and software go hand in hand and we are no where near making any dent in our technical know how simply by signing such a deal. All we shall do is pay them a lot of money for what we could accomplish much more cheaply by learnig over time by ourselves or in collaboration with other nations who do not want to charge an arm or leg or tie as as their "poodle". A lot of countries now think UK is USA's poodle when it comes to UK's foreign policy.

The solution? Different parts of India will need different solutions to its energy needs. Apply and work in all directions. Some ideas are: harness energy produced by alternative sources in a more efficient manner. Some examples given by Pacala and Socolo are as objectives to achieve by 2054: Double vehicle fuel economy and cut distance travelled per car in half; install fluorescent bulbs in all the world's 50 billion light fixtures; improve the efficiency of coal-fired power stations from 40% to 60% and cut in half the energy lost when fossil fuels are extracted, processed and delivered to those plants; there are currently 30,000 wind turbines worldwide of the standard one-megawatt size, increase them to 2 million; a 700-fold expansion of photovoltaic (PV) solar energy; a 50-fold expansion in ethanol; halt current deforestation and double the current rate of reforestation; make farmers avoid ploughing and thus reduce the amount of CO-2 escaping from tilled soil; add 700 one-gigawatt nuclear plants; quadruple the use of natural gas in power plants to replace equal number of coal-fired plants and finally capture carbon emitted by large fossil-fuel plants and store it underground. My own addition would be to harness biomass generated by house and garden waste, cattle dung, etc. more scientifically to generate more electricity, stop electricity generating board employees in India stealing sometimes about 40% of the electricity generated due to poorly managed financial controls, etc.

Nagin Khajuria

Tibet

2008-07-29T05:01:00.000-07:00

From: Nagindas Khajuria

Publication: Asian Voice

Sent: Tuesday, 20 May, 2008

Subject: The Rape of Tibet

The invasion of Tibet by China in 1950. Was it really "the Rape of Tibet?". I am referring to the article by Mr Gandhi to you (AV, 17 May, P4) on the plight of Tibetans. I do not think so at all.

World Bank economists, Shaohua Chen and Martin Ravallion, estimated that roughly 1.1 billion people were living in extreme poverty in 2001, down from 1.5 billion in 1981. United Nations has long used a complicated statistical standard-income of $1 per day per person, measured at purchasing power parity to define extreme poverty.

China and East Asia accounted for 800 million of those in extreme poverty in 1981. This group, mainly China, managed to reduce this figure to 260 million by 2001. Surely Tibetans would have benefited along with all other Chinese in this area as well as in all it progress and prosperity in every direction: e.g. average GDP growth rate of 6-8% every year for 50 years.

By comparison, India and South Asia accounted for 470 million in extreme poverty in 1981. This group, mainly India, managed to reduce this figure to a still a very high 415 million in extreme poverty by 2001.

Which ideology is better? Capitalism or Communism? In the former, man exploits man, In the latter, it is the other way round: man exploits man. Recent history has proved that none of the two systems are superior to the other. Let us not forget that Russia until recently was the second most powerful country in the world. Now China has proved with their "system of communism" that in many ways they are the most successful country in the world, BUT only to a certain level. In the Human Development Index (HDI) prepared by the U N Development Programme on a scale of 0-1, measured by three key components-longevity, knowledge and income, each measured by several parameters, China still comes 81st and India 126th in descending order among 177 countries. Recent events are beginning to prove that the entire world financial system, as the backbone of capitalism, could be fundamentally flawed.

China's and India's population growth will hamper their progress for generations to come and there is no way they can catch up with the West unless they work together with the West and ensure that the West also progresses and continues to buy their goods and services. In a sense the world is flat now and either everyone grows or every one falls behind. After all, China would not have been given a permanent seat at the Security Council of the UN, if that were not the case.

While it may be true that some Tibetans who want autonomy or independence may be suppressed, the Chinese culture, values and beliefs are as strong, if not stronger, that the Tibetans or the Indians. That is why they have outpaced both the Tibetans as well as the Indians. That is why they are not likely to ethnically cleanse the Tibetans nor invade neighbouring countries because they are wiser than that and also because in any case, the other countries all all protected by the Himalayan mountain range thick impenetrable border. Again, China has a separate Minister in charge of Ethnic Affairs. Which other country has such a minister?

Some of the factors that has enabled China to succeed so well and so fast are:

The Chinese culture: "the key factor is actually a country's cultural endowments, particularly the degree to which it has internalised the values of hard work, thrift, honesty, patience and tenacity, as well as the degree to which is is open to change, new technology and equality for women" according to economist David Landes, in his book The Wealth and Poverty of Nations". In U N Gender Empowerment Index, the Chinese rank 0.5 in the range of 0-1 while India does not even feature in this Index.

The Chinese values and beliefs: the Chinese believe in the fusion of three great religions: Confucianism, Buddhism and Taoism. They account for over 700 million people worldwide. They have believed in this for the past two and half thousand years. In that sense, they are no inferior to the Buddhists of Tibet. Confucianism, rather than a religion, is a set of moral and social values designed to bring the ways of the citizen and governments into harmony with each other.

The five Confucian virtues are benevolence, righteousness, propriety, wisdom and trustworthiness. Instead of God, it has five hierarchical relationships as the prerequisites in a well educated society: ruler to the ruled, son to father, younger brother to elder brother, wife to husband and the only relationship which is equal--friend to friend. The Government may be atheist, but the people are not.

Tao literally translates as the "Way". It implies the Way of Nature whose underlying principle and source of all being is the bond that unites man and nature. Its message is to take no action that runs against nature.

The Chinese economic policy: under the vision of Deng Ziaoping, vice chairman of the CCP, the Chinese Communist Party, from 1976 and again in 1992, China followed an "open door policy" for foreign investment and collaboration as opposed to Tibet that had historically closed its doors to outsiders all along until the Chinese came along and conquered them. The latter opened up the country to the whole wide world and has definitely improved the lives of the Hans, who represent 92% of the Chinese population, as well as all ethnic minorities who represent the remaining 8% including the Tibetans.

One should not forget that the massive Tibetan plateau at an average height of 4500 metres above the sea level, is guarded on all sides by towering mountain ranges: the Himalayas separate Tibet from India, Nepal and Bhutan to the south, the Karakoram from Pakistan to the west and the Kunlun from Xinjiang to the north. The plateau is the birthplace not only of the Indus, Brahmaputra and Sutlej rivers, but also the Yangzi, Mekong Yellow and Salween rivers in the east. Mr Gandhi's article fails to mention the Chinese rivers.

Finally, let us not follow the war mongering language or the divide and rule policy of splitting communities and countries which have shown that working together they could achieve far more than working as two independent countries entangled into an imaginary battle of ideology. The Tibetans are better off within China rather than without China. India also better make best use of the huge market potential of Chinese middle class so close to it by healthy cooperation and competition rather than taking a confrontational attitude without due reflection on its long term objectives, values and beliefs.

Nagin Khajuria

Israel at 60

2008-07-29T04:58:00.000-07:00

From: Nagindas Khajuria

Publication: Asian Voice

Date: Monday, 26 May 2008

Subject: Israel at 60

Sir

I refer to your editorial on Israel at 60 (AV 24 May p3). While I agree that India should foster stronger ties with Israel in all areas, one cannot put the blame on stalemate in Jewsih Patestinian relations more on the Arabs. Both group are equally to blame and Israel has often been ruthless in its treatment of Palestinians during those 60 years. It has also ignored many U N resolutions simply because of their strategic presence near all the oil rich Arab countries and have got away with it because of West's geo-political interests in that region.

I beg to disagree that the "Arabs repaid India with indifference laced with contempt" in return for India delaying the exchange of diplomatic missions with Israel until January 1992, even though India reconginsed Israel 58 years ago as a soverign state.

Currently there are virtually thousands of Indian citizens and/or persons of Indian origin (PIOs) who work, do business and live in Arab states: Indian citizens :Kuwait 294,000; Oman 311,000; Qatar 130,000; Saudi Arabia 1,500,000, UAE 900,000 compared to 300 in Israel.

In addition, PIOs or Persons of Indian origin who work, do business and live in Arab or Muslim states are: Malasia 1,600,000; UAE 50,000, Yemen 100,000 compared to 45,000 in Israel.

Private remittances to India in 2004-05 were 14,494,000,000 US Dollars. Some of this was surely from Arab countries. In Sudan, India has invested just under US $1 billion in equity in oil exploration and production activities. India imported petroleum, oil and lubricants to the value of 29,844,000,000 US Dollars in 2004-05. Some of it is surely again from Arab states.Current imports from U.A.E in 2004-05 were 4,582,000,000 US Dollars and exports to U.A.E. were 7,098,000,000 US Dollars.

In these hundreds of thousands who go abroad to work for India, there will be Muslims as well as Hindus and others. While a minority may be terrorists, the silent majority could be decent law abiding citizens or PIOs loyal to their Indian homeland.

Israel is not the only democracy in that region. Most Arab states treat their national and foreign workers fairly, have central and local governments, municipalities, rule of law, etc. etc. and not despotic or autocratic as Western media like us to believe. I worked and lived in Libya for four years in and oil exploration and production company and me and my family were treated with the utmost respect as Hindus.

Nagin Khajuria

Nuke Deal Jitters

2008-07-29T04:52:00.000-07:00

From: Nagindas Khajuria

To: Editor, Asian Voice

Sent: Sunday, 29 June

Subject: Nuke deal jitters

Dear Ms Dutta

Your leader article “Nuke Deal Jitters” (AV p1 28 June) advises that the Left-UPA (United Progressive Alliance) Joint Committee will meet on Wednesday 2 July 2008 to discuss the United States-India Peaceful Atomic Energy Cooperation Agreement. The world community will perceive it to be both a peaceful and military cooperation agreement. A hundred years later, historians will be able to condemn or praise their vision.

USA’s military or ‘hard’ power is strongest in the world. In addition, its “soft” power is Hollywood, McDonalds, Microsoft, American universities, Boeing, Intel, MTV, Coca Cola, Kodak, etc. With the help of its European and Far East allies, it has become widely accepted as a way of life among the developed world.

India’s military or hard power is enough to defend itself against any aggression without the need to become a U S protégé such as Israel. India’s soft power is its rich heritage since 3012 BC, Bollywood, pluralism, democracy, cuisine, fashion, vegetarianism, non-violence, scriptures, pluralism, yoga, meditation, spirituality, etc. Currently India has a Roman Catholic ruling political party President, a Sikh Prime Minister and until recently a Muslim Head of State.

USA and Europeans belong to developed, wealthier 50 or so nations with some degree of inner superiority complex. India belongs to the developing or under developed group of 150 or so nations representing the less fortunate group as a whole. The latter group’s way of life is superior in maintaining the biodiversity and beauty of this planet and is more sustainable and sensible all way round.

When you watch Wimbledon tennis, or the European League Football Championships, you cannot fail to realize the over-representation from the former 50 countries and the under-representation from the latter 150 countries.

Although the latter group belong to a body called “The Commonwealth”, the wealth is more common among some nations and less common among other nations.

At this time in the history of India, members should remember and reflect upon the following:

· OECD (Organisation for Economic Cooperation and Development) was formed in 1961 to assist member states to develop economic and social policies aimed at high sustained economic growth with financial stability. Its 29 members are Canada, European Union members, Japan, Luxembourg, Mexico, New Zealand, Switzerland, Turkey, Korea and USA. It has helped these countries become so successful in 50 years. It is based in Paris.

· OECD started as OEEC (Organisation for European Economic Co-operation) in 1948 after World War II. Its name was changed to OECD when non-Europeans were allowed to become members from 1961.

· NSG (Nuclear Suppliers Group) was founded in 1975 after India carried out a nuclear test in 1974. Its 45-member nuclear supplier group includes Argentina, Australia, Brazil, Canada, China, Cyprus, Japan, Kazakhstan, Malta, New Zealand, Russia, South Africa, South Korea, Switzerland, Turkey, Ukraine, all European Union members and USA.

The protest rally in Mumbai last Tuesday by Jammat-E-Islam against India’s possible civilian nuclear deal and the Communist Party members are right to throw this baby out of the water. The main parties should be grateful to them to open their eyes. Why should Israel have nuclear weapons and not Iran?

USA and European foreign policies have been misguided for the past 50 years. They have concentrated more on the weapons of mass destruction and less on the weapons of mass salvation.

According to Jeffrey D Sach, he says on page 287 of his book called “Economics for a Crowded Planet – Common Wealth”:

“The Middle East has experienced a century of Western imperial meddling. Britain and the United States toppled governments (Iran in 1953, Iraq in 1968), supported wars (Iran-Iraq in 1980-87), tolerated tyrants when convenient (Saddam Hussein in the 1970s and 1980s), and toppled them when inconvenient (Saddam Hussein in 2003). The United States supported Osama bin Laden and his mujahedeen in the Afghan civil war (against Soviet Union) only to help create Al-Qaeda”.

Some of the US Government's policies are now in need of change. Their military and overseas spending in 2007 was US $572 billion in military, 11 billion on international security, 14 billion in overseas development aid and 11 billion for diplomatic functions. Can they explain the rationale behind such behaviour?

In the 21st century, the country that spends more on development aid will steal the march from US to be the next world leader.

Nagin Khajuria, FCCA

Amarnath - The Politics of Religion

2008-07-29T04:46:00.000-07:00

From: Nagindas Khajuria

To: Asian Voice

Sent: Sunday, 6 July, 2008

Subject: Land of Amarnath Yatris trigges political tremors

I feel very sad about the events described in your article “Land of Amarnath Yatris triggers political tremors” (P1 & 30, also P4, .AV 5 July). While holy places have spiritual energy, our entire life is a pilgrimage and the real temple is a place of inner worship.

The tit for tat subsidy dispute between the Amarnath Cave Shrine for Hindu pilgrims and Haj flights for Muslims in Kashmir is a symptom, not the disease. The immense potential in the state will continue to remain unutilised until a permanent solution is reached.

The disease is the inability of both countries peoples to resolve the issue while their leaders continue to bury their heads into the sand.

Pakistan invaded the state on 22 October 1947 and secured 78,114 sq. km (35%). China invaded the Aksai Chin part of Ladakh and managed to secure 42,839 sq.km (19%) and India has ended up keeping 101,283 sq.km (46%) out of the original 222,236 sq. km (100%). Maharaja Hari Singh had signed the instrument of Accession to India on 26 October 1947 and that should have been honoured by Pakistan and China.

The population facts are: Pakistan 150 million Muslims (12%), Bangladesh 138 million Muslims (11%) and India has 138 million Muslims (11%) and 828 million Hindus (66%). Total sub-continent population is 1,254 million excluding Shri Lanka. Overall about 34% Muslims and about 66% Hindus live side by side. All originally “Indians” over 2000 years.

Nargis Dutt (real name Fatima A Rashid), Madhubala (real name Begam Mumtaz Jehan Dehlavi, Mohammed Rafi, Shah Rukh Khan, and many more are cherished and enjoyed with equal force by both Hindus and Muslims.

The ethnic, religious and linguistic conflicts of 10 million people in Jammu and Kashmir have had most damaging repercussions on the welfare of 1,254 million people over the past 60 years.

In the 2004 general elections, in Jammu and Kashmir, of a total of 87 seats, Jammu and Kashmir National Conference won 28, Indian National Congress 20, Peoples Democratic Party 16 and Independent Party 13.

Across India, in 2004 Congress and its allies won 218 seats; National Democratic Alliance won 187 seats, Left and its allies 60 and others 64.

It is incomprehensible why these political parties are fighting among each other on religious, ethnic and linguistic grounds while they should be fighting on social justice issues such as literacy skills, education, health, equal opportunity, clean drinking water, shelter, etc. Surely the latter should be the battleground for the coming general elections in 2009.

Punjab-Haryana-Delhi (PHD) Chamber of Commerce based in Delhi now covers 10 states and one union territory, namely Chhatisgarh, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Madya Pradesh, Punjab, Rajasthan, Uttar Pradesh, Uttaranchal and the Union territory of Chandigarh. It is known as PHDCCI. It was formed in 1905. These states together account for 40% to 45% of India's GDP. "PDH" became an accronym for Progress-Harmony-Development since 1981 when other states joined the Chamber.

It has compiled important data on Jammu and Kashmir and how it compares with other Indian states. Please visit www.phdcci.in. Its per capita income in 20005-06 was Rs 17,463 compared to the national average of Rs 21,005. Its urban population is 25%. Its literacy rate 55%. It has 75 towns and 6,653 villages.

The principal crops are rice, barley, apples, and saffron. Major industries are handicrafts, sericulture, horticulture and tourism. I flew to Srinagar from Delhi in 1976. The view below from the aircraft was like heaven on earth: Switzerland multiplied by 1000 times.

In Srinagar, I and my wife were received by Mr & Mrs Lal. Mr Lal was then the Governor. We had become their friends during the previous two years when Mr Lal was First Secretary at the Indian Embassy in Tripoli, Libya and I was working for Umm Al-Jawaby Petroleum Company as an Internal Auditor for four years.

Both countries have lost billions of dollars of tourist revenue because of this bitter greed on both sides to hang on to status quo and/or rely on a feeble United Nations to resolve the issue which they themselves can easily resolve if they had a modicum of common sense.

My message to both countries is: stop dithering on the Heaven on Earth piece of land and get cracking on attracting tourists after a permanent solution is implemented by mutual long lasting agreement.

Nagin Khajuria

Gordon Brown -- Is he a Charlie?

2008-07-29T04:30:00.000-07:00

From: Nagindas Khajuria
To: Asian Voice
Sent: Monday, 16 June, 2008
Subject: Gordon Brown -- Is he a Charlie?

Dear Ms Anjana Dutta

I refer to “Gordon Brown – is he a Charlie? Article (Kapil’s Khichadi, AV 24 May p11) and Arun Vaidyanathan response (AV 7 June p 4) on the 10P fiasco, etc and whether we should continue the voting system of first past the post (FPTP) or move in the direction of proportional representation.

It is my firm belief that reform of the electoral system is urgent now. The FPTP voting system and the predominance of the two parties over the past 40 years has meant that the country was run in a divided rather than a united way as far as long term investment in key areas is concerned.

Primary and secondary school system, world class vocational training institutes, integrated transport system, utilities companies, affordable housing, energy policy, health prevention, pollution, unhealthy market supremacy of supermarkets has suffered so badly that UK is well behind most developed countries in all these areas. Such plans should be agreed jointly by all three parties for at least 25 to 30 years ahead.

This has not been possible because of the 70% safe seats, 35% each of Conservative and 35% Labour constituencies which have not changed for 40 years. The former believe in the efficiency of the market system and a lean minimum government. The latter believes in protecting the working class. None of this is relevant to a good government.

Government’s role and ethos of its representative should be that of serving the public or “service”. The market system’s ethos should rightly be the pursuit of “profits”. The proliferation of quangos in lieu of either fully fledged private institution or fully fledged public sector body, the intrusion of the market system in NHS and PPPs (public private partnerships) has meant that MPs, MEPs, Councillors are lured in to going into politics sometimes for financial gain and sometimes to serve the public. Once they are there, they want to keep their positions for much longer that is warranted.

If you start from the first British Prime Minister 1721 to 1742, Sir Robert Walpole, Earl of Oxford to the 71st current British Prime Minister, Mr Gordon Brown (2007 onwards), 49 of them were educated mostly at Oxford and a few at Cambridge Universities.

Most other developed countries have already adopted some degree of proportional representation system of voting for decades by now. Only that way more people and their ideas can filter through the machinery of government at central and local levels.

The Conservatives have their right leg in the US and their left leg in Europe. Labour has its right leg in Europe and left leg in US. The Liberal Party has been winning votes but not seats. As a result foreign policy, immigration and defence have got into a right muddle.

Between 30 to 40 per cents of MP, MEP and Local Councillors seats have been “safe” seats for generations after generations between Conservatives and Labour. The other 20 to 40 per cent of those voting keep floating between these three parties based upon short term propaganda, intensive publicity, deliberate exaggeration and obfuscation of facts to gain an upper edge over the other party.

The most recent example of this is the 10P fiasco. In fact it was not a fiasco at all. Nor did it hurt the poor so badly. It was a very clever use of hype, hyperbole and obfuscation. The true situation was about 18 million poor people earned taxable income of about £17,000 per year in 2006/07. Their approximate tax bill was: first £5,000 no tax, on the next £2,300 the tax @ 10% was £230 and the next £9,700 @ £22% was £2,134, making total tax payable of £2,364. (18 million included 6 million part timers with 2 jobs, 6 million women and 6 million household joint incomes).

In tax year 2007/08, the same 18 million again earned about £17,000 per year (£1400 per month or £325 per week). They paid no tax on the first £5,000 and on the balance of £12,000 they paid or will pay 20% that is £2,400.

The extra tax these 18 million individuals paid was £36 per year or £3 per month (£2,364 in 2006/07 and £2,400 in 2007/08. Yet the hype was so dramatic by the media barons that wool was pulled over the eyes of 18 million people and Mr Brown fell from grace, a hero of the past decade, turned into a zero of the new decade.

In 1983, 43.5% of voters voted for Conservatives, 28.3% voted for Labour and 26.1% for Lib-SDP, and 2.1% others. Conservatives won 397 seats, Labour 209 and Lib-SDP 23 seats and 4 others. If it was based upon proportional representation, the seat allocation would have been 277 seats Conservatives, 180 Labour 166 Lib-Lab, and 9 seats others.

In 1983, the population eligible to vote, that is over 18 was about 45 million. Those who voted totalled 30 million that is 67% of the population. If you multiply 67% by 43.5% you get the true votes the Conservatives got in that year. It was 29% of those eligible to vote. They formed a majority Conservative government based upon this 29% on the First- Past- The- Post system. How can you call this true democracy?

50% to 60% of social classes A, B and C1 voted about Conservatives in 1983, 1987 and 1992 elections. 60% to 70% of social classes C2, D and E voted Labour in 1983, 1987 and 1992.

The following are the current voting systems available to the general public in the UK:

First past the post system: the current system used to elect MPs—whoever gets the most votes in a constituency wins, even if they secure a minority of all votes cast.

Alternative Vote (AV): a system whereby candidates are ranked by electors and redistributed until a candidate with 50% support emerges.

AV plus system: this is what Lord Jenkins recommended when he was asked to examine changes to the electoral system in May 1997. Here a small top-up list of MPs with no specific constituencies would be elected according to their share of vote in different areas.

Single Transferrable Vote (STV): multi-member seats elected by proportional representation—system favoured by Liberal Democrats.

In substance, there are really two systems: the list system and the single transferrable vote system. The case against it is that it does not produce a majority government, but unstable coalitions and breaks the bond between MPs and their constituencies.

I do not believe that is the case. Coalitions can be sensible and stable and can act in the long term interest of the country. India is a prime example currently with 85 political parties. Minority parties can bring in fresh ideas, diversity and challenge decisions that are taken so often for political gain, reversed when the next party comes, and again reversed back the first party comes back in power. Such activities waste billions of pounds which the public would otherwise see in fairer wealth, jobs and income distribution.

Finally, there is hardly any bond between the members of a constituency and an MP. They are normally too high headed and almost impossible to meet up informally. All you can do is to communicate with them in an impersonal way. Most citizens’ experience is going once every five year to vote and then all is forgotten until next 5 years elapses.

Nagin Khajuria

Bollywood Retold

2008-07-29T04:24:00.000-07:00

Publication: Asian Voice

Date: Tuesday, 5 June, 2007

From: Nagin Khajuria

I beg to differ in several respects with The Guardian's Edward Marriot book review: "Bollywood: A History by Mihir Bose" (p.36, AV, 2 June 2007).

Mr Marriott writes "that while the Indian film industry began in 1896, the genuine cross-over success did not happen until Lagaan was produced in 2001". This is not true. While a greater number of Indian films may have been average or mediocre, Bollywood has indeed produced umpteen number of outstanding master pieces throughtout the decades from 1900 onwards. These have long been popular not only in India, but also all over the world, esp. Russia, former Union of Soviet Socialist Republics, the entire Middle East, North, East and South Africa, etc. Western media had just chosen to ignore this success until of late.

The book review says "the Indian film industry is rich in irony and it is hypocritical for India to forbid lovers kissing on the screen while producing master pieces like Kama Sutra and the erotic statutes of Khajuraho". There is no irony or hypocrisy in that at all. Not only on the screen, but in real life, both in cities and villages, kissing in public by lovers is considered indecent. Kama Sutra describes the pursuit of love or pleasure, both sensual and aesthetic, as necessary for life, but only if restrained by considerations of dharma according to Hinduism. That is why Khajuraho is a group of 20 Hindu temples, constructed mainly of sandstones, in 950-1050, where the internal and external wall structures are embellised with masterpieces of erotic art. It is also why it is considerd a world heritage site.

Again, the article says "to Western eyes, the peculiarity of Bollywood is surely its eclecticism. Eclectic merely means diverse, general, broad, varied, comprehensive, extensive, wide-ranging, selective, diversified, manifold, heterogeneous, catholic, all-embracing, liberal, many sided, multifarious and even amateurish. But not just the last meaning. So what is wrong with its eclecticism? In Mother India, for example, the money lender verbally agreed to charge one-quarter of the farm produced by the illiterate village heroine borrower as interest, but made the old heroine put her thumb on a written document where he changed the one-quarter to three-quarters. The village tribunal was relied on the written evidence and the lender but not illiterate borrower and dismissed the latter appeal for redress. Such powerful messages were given subtly as early as 1957 in our films. A largenumber of Indian films encourage higher moral and religious values, nomally with a happy end.

Finally, out of estimated total households income of 1881.9 lakh rupees earned in India, 1,347.1 lakh rupees (71.6%) was earned by rural India in 2001-02. And again, out of this 1347.1 lakh rupees rural income, 1,107.5 (82%) was earned by households that earn less than 90,000 rupees (or £1,058) per anum each. That is just under £3 or under 250 rupees per day. The raison d'etre of Indian movies has been escapism to the urban and rural poor historically speaking. One needs to be very careful when re-writing this history so that future generations are not mislead.

Nagin Khajuria, FCCA

Is UK now half-baked US and half-baked EU?

2008-07-10T04:23:00.001-07:00

Some of our fundamental laws and practices are based upon the membership of EU and our 57% external trade with EU. Other fundamental beliefs, trade, investment, ties, etc. lean more towards US connections and the U S Dollar. We seem to be on a seesaw but sitting in the middle and not really moving forward with full force. I genuinely believe that either we should join the EURO and be whole hearted in the EU or we should get out altogether and follow the American system of capitalism wholeheatedly.

For example, SMEs in Germany make up about 30% of all the businesses in terms of market share that are very strongly supported by local, regional and national German government and commercial banks. In the UK, SME's "equivalent" market share is only about 10%. In the US, the bottom 10 per cent of the work force is 10 times worse off than the bottom 10 per cent of the work force in EU which has a fundamentally different kind of capitalism.

My recent visit to Paris and use of the Metro with a packet of 10 tickets for 10 Euros convinced me that if we subsidised our tube by 100's of millions of pounds, we would gain billions of pounds extra in tourism. We must look back 200 years and look forward 200 years before jumping to a conclusion just based on five economic tests and one political test. Does anyone have views on this?

It is not money we need to spend to persuade the public on which way we should go. It is deep thought and profound debate on these issues.

Changing the Finance Act

2008-07-10T04:21:00.000-07:00

Are we too stubborn to move forward?

I read your article (Comment, 16 November, page 2) by Sir Geoffrey Howe, ex-chancellor, with great interest.

I have been involved with UK taxes for the past 25 years. I find that we all enjoy the annual ritual of the red book (Budget) and the amusement that we get from the very complexity of tax structure and tax law, the semantics, the nuances, the case law, etc. etc.

We have become creatures of habit. We must now reflect upon this behaviour for the past 25 years, and realise that partly because of this complexity and bureaucracy, we have lagged behind in productivity compared to USA (40%), Germany (10%) and France (20%).

Our standard of living is also below these countries. It will require many ruthless reformers to break this culture.

I believe the annual Finance Act should be changed to every three years.

So should the Budget and the Spending Review.

We shall than have less of a boom and bust scenario.

Nagin Khajuria, FCCA, London

Big Accountancy Firms

2008-07-10T04:19:00.001-07:00

Date : 01 July 2004

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Big Accountancy Firms

BIG ACCOUNTANCY FIRMS

Your lead article and comment on the big four going back into consultancy by 2005 (17 June, page 1 and 12) runs counter to the fundamental reasons why they were asked to hive it off.

Their income broadly comes from four areas, consultancy and business advice, human resources advice, taxation compliance and planning and audit assurance, probably in equal revenue streams.

Hiving off IT consultancy is a red herring. Most large companies are so deeply computerized that business advice cannot be separated from IT.

The big four have wasted too many years encouraging financial engineering and short-termism, rather than reporting on the long-term strengths of company.

They cannot give business advice, help with management selection, set up computer systems, give tax-planning advice, then help with account production and tax returns and finally certify that the business is run well, paying the right amount of tax and give a true and fair view of its annual results.

I hope the securities and exchange commission and or the EU's new constitution will make sure they are never allowed to wear more than two hats-ideally, auditing and taxation or preferably one hat only-auditing.

Small vs BIG

2008-07-10T04:18:00.001-07:00

Date : June 2004

To : The Editor, The Director

From : Nagindas Khajuria

Subject : Small vs Big

SMALL vs BIG

Banking

Your article on SMEs and banks highlighted the fact that although banks make billions of pounds every year, they don't really help SMEs and sometimes overcharge them.

We should consider the help growing business get in Germany, where small local authorities not only lend to SMEs, but also invest in them. They therefore have intimate knowledge of the local businesses.

Here, the big banks hardly have any trading knowledge of SMEs. Local banks and local authorities working with business in clusters, exploiting informal networks and with storage incentives to develop the local economy cannot be achieved by the big four banks dictating from their head offices miles away.

Iraq: The US Link

2008-07-10T04:16:00.000-07:00

Date : 16 May 2004

To : The Editor, The Business

From : Nagindas Khajuria

Subject : IRAQ Wars

IRAQ WARS

Ditch the US link

Sir - I agree with your editorial ("Iraq: the uncomfortable truth" 18/19 April) that the Bush administration does not understand the long-term nature of the war against terrorism and is not willing to listen to seasoned advice from the British. Perhaps it is time to abandon the special relationship with the US that was born in 1945. It does not mean much based upon 60 years' experience, and the time may be ripe now to build a special relationship with Europe. With the letter, we have shared our civilization for 2000 years. The US has been following a unilateralist policy for over 25 years. It needs to be counter-balance by another bloc like the EU, but without the UK on its side, the EU does not stand a change to rise to the occasion.

It is the intelligence that is shared between Israel and US that probably brought about the Iraq war in the first place.

In the long term, unless the UN takes over and unless Resolution 242 of the United Nations is observed and implemented where Israel has to withdraw to pre-1967 borders, the situation could escalate into world war 3. The acronym MAD come to mind: mutually Assured Destruction. It is the Palestine issue that is the crux of the matter and the sooner this is understood the more peaceful the world will be.

Blind Terror

2008-07-10T04:14:00.000-07:00

Date : 21 March 2004

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Terrorism

TERRORISM

Blind terror

Sir - Your editorial "How to fight the new terrorism", 14/15 March, makes the same recommendations as the official UK and US government policies and actions to date. With respect, it appears more like the blind leading the blind. Surely, more energy and resource must be diverted towards making this planet a better place to live in harmony on a wider scale.

The past 60 years may have seen peace, but it has also been the period when the group of 8 countries have done their utmost to ensure economic domination of the world's other nations by often not very fair and legitimate means.

Attitudes and institutions such as United nations, International Monetary fund (IMF) and the world bank need to change and re-direct their focus, not by instilling fear and force to combat terrorism. The IMF has often changed exorbitant interest rates and insisted on wrong, unworkable policies of privatization and market forces in countries that did not have the infrastructure or the institution to support such a system with the result that these countries are still where they were 60 years ago.

Nagin Khajuria, FCCA

Tax Targets

2008-07-10T04:13:00.000-07:00

Date : 19 March 2004

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : UK Fiscal Policies

UK FISCAL POLICIES

Tax targets

I disagree with the majority of FDs who feel a big tax rise would hurt Labour beyond repair (11 March. page 2 ). As a percentage of income, middle and high earners pay less tax now than they have for 30 It is the low paid who are getting a raw deal.

A low-paid worker earning £9,500 a year (there are about six million of them) was almost exempt from income tax until the early 1970s but now pays about 22% A middle-class income worker earning £37,128 paid between 32% to 35% for 15 years after 1974 and since 199 is paying between 27% to 29%. Fat cats were historically paying 50% to 60% during 1950s to 1980s. Since 1990s they have been paying 38%. The latter two groups have never had it so good.

Labour would do much better in the next election if they raised taxes on middle and higher income groups and lowered them on lower paid groups. Otherwise there will be no difference between themselves and the Conservatives.

That way they could achieve their target of a £4bn surplus by 2007.

Wasting Public Money

2008-07-10T04:12:00.000-07:00

Date : 29 February 2004

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Wasting Public Money

WASTING PUBLIC MONEY

Sir - Your editorial (The Roar of a Tory Mouse, 22/23 February) shows your newspaper has more vision than policy drivers at the Conservative Party. Their plans to "diminish public spending as a share of national income from 41.9% of GDP in 2005-06 to 39.9% in 2011-12" is neither here nor there. There is always a margin of error of a few percentages in forecasting over so many years.

Over 36 years, I have followed and observed UK politicians plans, policies and manifestos. Most of them have put too much emphasis on perception and too little emphasis on substance.

Sometimes developed countries should learn from underdeveloped or developing countries' experts on how to reduce public spending drastically without sacrificing the quality or quantity of public services.

Wasting Public Money: What a Waste

2008-07-10T04:11:00.000-07:00

Date : 06 November 2003

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Wasting Public Money

WASTING PUBLIC MONEY: What a waste

Anne Redston at E&Y is right about the complex tax credit system being a waste of public money (23 October, page 3). The 1% NI introduction above a certain level is another nightmare when a simpler system could have been introduced.

A further example of waste of money is pouring billions into motorway widening. The only industry to benefit is the motor industry that is owned by foreign companies.

Money could have been much better spent on railways that are falling apart after privatization. Our 659 MPs should make a better job of preventing waste. Very often they just go along with whatever government proposes.

Big Accountancy Firms: Conflict Zone

2008-07-10T04:10:00.000-07:00

Date : 19 October 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Big Accountancy Firms

BIG ACCOUNTANCY FIRMS

Conflict zone

Sir - The article on the Big Four accountancy firms ("Fires that won't go out for the Big Four", 12/13 October) raises interesting issues about the need for a new business model for them. Their dominance of 78% market share in audit services, probably worldwide, should be curtailed to around 50% by giving opportunity to second-tier accountancy firms, who who could bring in better and fresher ideas. Internal audit should be abolished, and all work relating to internal audit should be done by the audit firms as part of better quality external financial and operational audit procedures by the Big Four.

Tax compliance and tax planning; corporate finance; management consultancy and human resources; and external audit are mutually exclusive disciplines. The Big Four should be split again so that they would be allowed to provide only one of these. As there is so much cross-holding between large companies, the problem of conflict of interest will not go away simply by allowing the Big Four to continue offering the other services to non-audit clients.

The same audit firm is auditing the same client often of 30 to 50 years. One firm should never be allowed to audit for more than five years. What's more., too many government contracts are also given to the Big Four firms as opposed to second-tier firms. That should also change.

Attempts to issue International Accounting and Audit Standards are a dog's breakfast, and do not go to the root of the problem which is not principles, nor practice, but conflict of interest.

Wrong Numbers

2008-07-10T04:08:00.000-07:00

Date : 12 October 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Wasting Public Money

WASTING PUBLIC MONEY

Wrong numbers

Sir - The letter from Nagindas Khajuria last week regarding the waste in the state benefit system, following Bill Jamieson's article, "Boom time in welfare land" on 7/8 September, was replete with common sense. Of course the state benefit system is not real employment. It is a giant job creation scheme. Why otherwise does the UK government employ thousands to take telephone calls to administer the new means tested pension credits?

Personal incomes are no secret to government. Surely the additional benefit could be applied universally with a cut-off point to those on incomes above the poverty level or whatever level it chose.

This telephone work being created in the benefits system is the type of employment that private industry is currently transferring to India at huge cost savings, a fact that seems to have escaped the government's attention. The cost of millions of phone calls will be borne by the most impoverished people in the land - pensioners - simply in their efforts to secure what is supposedly their right. That is a salutary thought when one considers that many of the telephone companies which will receive these new cash streams from these calls are the same ones responsible for squandering countless billions (£30bn on3G licences) in building and creating overcapacity.

Wasting Public Money: Keep it Simple

2008-07-10T04:07:00.001-07:00

Date : 05 October 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Wasting Public Money

WASTING PUBLIC MONEY

Keep it simple

Sir - Bill Jamieson's article on the jobs boom in the public sector - a 3.9% increase in two years to 2003 Q1 ("Boom time in welfare land as Brown's billions flood in", 7/8 September) - highlights waste and duplication of public funds on a massive scale that could bankrupt the UK in 20 years time.

What the public sector needs is drastic streamlining of the entire government machinery, its systems and procedures.

For example, to claim state benefits you have to fill in numerous forms that run to more than 50 pages, which humiliates many potential applicants too proud to be means tested and who lose out on the benefits to which they are entitles. One simple annual tax return system could be used where drawings, mortgage payments, car ownership, house ownership etc could be filled in only once each year to provide realistic data on whether an individual or a household's lifestyle is consistent with income and the need for state benefits.

Currently we use thousands of tax and benefits staff to vet thousands of forms and records which are conducive to tax evasion and fraudulent benefit claims. There are also contradictions in the system. For instance, if you do not claim benefits, then you do not need to declare your partner's income but, if you do [claim benefit], you need to declare your partner's income.

The Finance Act makes a few minor changes to tax rates and tax laws, yet the UK taxation system is horrendously complex. Rates could be set for three years with one Finance Act every three years.

Such unnecessary bureaucracy and form-filling has permeated through all government departments in the past 20 years where no real work is done and everyone is checking and ticking boxes to verify one another's work. A huge amount of glossy brochures and leaflets are published that no one reads.

One can go on and on. When you spend £50 to process an order to purchase a £3 hammer, of course you are going to need ever more government staff to handle the systems and procedures. It is all waste and it is not real employment with growth potential for any country.

One final example is dividend income. Thousands of shareholders now have very few shares in privatized companies which continue to issue cheques and dividend vouchers for a few pence every six months. Surely any cheque issued for less than £10 is a complete waste if you count all the processing costs involved. Again, the entire country's financial accounting and reporting system without making the slightest difference in the results.

Education: Entrepreneurship

2008-07-10T04:06:00.001-07:00

Date : October 2003

To : The Editor, The Director

From : Nagindas Khajuria

Subject : Entrepreneurship

Education

While I agree that education should be geared more towards business (Editorial, September), the advent of large companies is also partly to blame for a lack of entrepreneurial spirit in our youngsters.

In almost every industry sector, five or fewer companies control 75 per cent of the UK market. For example, over the last 25 years, the five main supermarkets have increased their market share from 50 per cent to 75 per cent. Perhaps this explains why food sold in supermarkets is so bland and monotonous. Yet the Competition Commission does nothing to stop this harmful development of multinationals in all market segments.

In such circumstances, youngsters will always be encouraged to be employees rather than employers.

Iraq

2008-07-10T04:04:00.000-07:00

Date : 19 January 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : IRAQ

Iraq

Sir - Your editorial suggests that the UN resolution clearly puts the onus on Iraq to make "a currently accurate, full and complete declaration of all aspects of its programmes to develop chemical, biological and unclear weapons, ballistic missiles and other delivery systems". Yet we should consider what is also precipitating the US into war and dragging Britain with it.

First, the US has spent an average of around 5% of its GDP on military aircraft, submarines, missiles, rockets and so on for the past 50 years to counter the threat of communism. As the cold war is over now, it wants to prove that such expenditure is warranted over the next 50 years. In 1991, military equipment revenues accounted for a substantial part of US companies turnover: Boeing (20%), General Dynamics (84%), Grumman (89%), Lockheed (50%), Martin Marietta (43%), McDonnell Douglas (48%) and Northrop (10%). A lot of this arsenal was never deployed and was wasted as technology kept changing. Germany and Japan were wiser: they spent 1% and 0% of GDP on defence during the same period.

Second, 55% of world oil reserves are concentrated in Saudi Arabia (25%), Iran (10%), Iraq (10%) and the Gulf states (!)%). US oil companies are already losing influence there due to emerging non-US oil companies.

Third, homo sapiens likes the sound of warring drums. Maybe there is no enemy, no threat - we just like to fight.

Big vs Small: Great Idea

2008-07-10T04:03:00.000-07:00

Date : 16 January 2003

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Big vs Small

Great Idea

Congratulations on introducing your excellent new Adviser section (see Services, back pages, every edition) for small practitioners.

Classical economics defines economics as a dual system: on the one side, big enterprises which are strong in public perception and sustaining them, on the other the thousands of small manufacturers, artisans, services enterprises, merchants and other entrepreneurs and the rural masses.

Alice in Euroland

2008-07-10T04:01:00.000-07:00

Date : 12 January 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK & The EURO

Alice in euroland

Sir - Nagin Khajuria (Letters, 5/6 January) refers to your editorial a fortnight earlier in which you set out the ideal interest rates for certain euroland countries. Khajuria suggests that this is a pointless exercise since each country has the same exchange rate, via the euro, with the result that there has to be one interest rate set across euroland as a whole (it currently stands at 2.75%).

Khajuria is missing the point. Where a Euroland country's actual interest rate is significantly different to the optimum interest rate for that country's economy, the country concerned will suffer economic damage - typically, either unemployment will be too high or inflation will be too high as a result of having the wrong interest rate.

I currently compute that the UK needs an interest rate of 4.4%, and euroland 2.8% - close to the actual rates of 4% and 2.75%, respectively. I use the well-respected Taylor Rule, which expounds that the current interest rate for an economy at any given point in time is a function of that economy's inflation rate and output gap. I estimate that Germany currently needs an interest rate of 0%, putting the country in broadly the same position as Japan, which apparently needs (and, indeed, has) an interest rate of around 0%.

Germany's actual current interest rate of 2.7%, therefore, is hopelessly map propriate. The resulting economic damage being wrought - with the Germany economy barely growing at all and with soaring unemployment must be clear for all to see.

UK and The Euro

2008-07-10T04:00:00.000-07:00

Date : 05 January 2003

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK & The EURO

UK & THE EURO

Sir - In your editorial (An unhappy birthday for the euro, 22/23 December), you mention that ideal interest rates for Germany would be 1.7%, for Ireland 12.5% Portugal 9.9%, Italy 5.2%, Spain 7.8% and France 3.8% because of their differing levels of inflation and output.

Such research is ludicrous, for a number of reasons. Historically, central banks have used several methods to expand or contract the economy or aggregate demand: interest rates, open market operations and reserve ratios. National banks will continue to engage in open market operations and standing facilities on low, medium and high levels, as they have been doing for years.

Second, the governors of the 11 national central banks and the six executive board members of the European Central Bank comprise the governing council of the ECB and these 11 national banks will continue to play a vital role in monetary policies of the euro. This is quite different from the centralized control of the US Federal Reserve.

Third, prices or inflation in the above countries is only marginally higher than in the UK. Unemployment may be higher partly because of the way statistics are prepared.

Fourth, growth could be slightly lower in the Euro countries than the UK, but for decades their public sector services have been superior in quality and far cheaper in price than in the UK.

Fifth, it is nonsensical to have different interest rates applicable to countries which have the same exchange rates. Finally, there has never been one interest rate that fits all in the EU: there has always been base rate, Lombard rate, short-term rate, long-term rate, real interest rate, nominal interest rate and effective exchange rate, all different for individual EU member countries.

It is high time your paper acknowledges the positive aspects of the far sighted vision that the euro encapsulated, rather than just lingering on its short-term difficulties. The UK media, by playing all the time the tune the reader wants to hear, is doing a great disservice to this country.

University Fees

2008-07-10T03:59:00.000-07:00

Date : 27 October 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : University Fees

UNIVERSITY FEES

Sir - Seventy per cent of university mega-mergers have failed, so it's best to concentrate on quality rather than quantity. According to 1997 OECD statistics, 24% of UK females and 19% of males aged 16 to 24 were inactive or unemployed. In other EU countries (apart from Italy) and the US, the percentages were much lower.

These issues should be addressed before university mergers. Mahatma Gandhi said : "I do not want mass production, I want production by the masses."

Reliable Statistics

2008-07-10T03:57:00.000-07:00

Date : 09 June 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Reliable Statistics

RELIABLE STATISTICS

Statistics rethink

Sir - I agree with many of the points made in your article UK growth data points to flaws in statistics (2/5 June). However, I do not believe ONS plans to follow American statisticians' lead and introduce "chain-weighting" to measure UK output more accurately is a wise move. ONS still relies too much on survey evidence rather than actual input figures by business and government.

A much better idea would be to rely on income tax, corporation tax and Vat returns and make it mandatory that each return contains one main industrial classification. Then there would be no need to send compulsory survey forms requesting statistical information. Some companies just throw away such questionnaires.

Tax under Labour

2008-07-10T03:56:00.000-07:00

Date : 07 April 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Tax under Labour

Tax under Labour

Sir - Your article on the MPC's dilemma was very interesting. The 2.5% per annum inflation target was set in 1997, when interest rates were generally higher than now. I believe the MPC should now urgently seek new guidelines from the chancellor in his next budget, for several reasons.

Firstly, UK GDP is only about 5% of the world's GDP. Germany's is 10%, Japan's is 20% and the USA's is 30%. Historically, all these countries have lower interest rates than the UK. To compete, we also need to keep interest rates low.

Secondly, there are signs of unease in the public sector, and wage demands are now surfacing more regularly. Increasing interest rates will only fuel cost-push, rather than demand-pull, inflation.

Thirdly, your article suggest that mortgage borrowing is rising at the rate of 10% per annum. But so are house prices - at a similar rate. The increased borrowing may be partly for luxury goods and construction and the improvement of properties, and so it is good for the economy.

Fourthly, UK competitiveness in manufacturing has risen very slowly compared with the rest of the world. If we take relative export prices as 100 in 1990, the 1998 prices were 117.2. By contrast, the relative import prices in 1998 were 108.6.

Fifthly, if sterling has risen against the euro since the euro's inception, it will rise more if interest rates increase, and our competitiveness will be even worse hit. One idea could be to "aim" for 0% inflation in five years time by reducing the inflation target of 2.5% by 0.5% each year so that we reach the goal by year five.

For all these reasons, I believe interest rates should remain consistently low for at least the next five years.

Scary Pound

2008-07-10T03:55:00.001-07:00

Date : 07 April 2002

To : The Editor, Sunday Times

From : Nagindas Khajuria

Subject : UK Monetary Policies

UK MONETARY POLICIES

SCARY POUND : I disagree with David Smith (Economic Out look, last week). The pound is scary if you look a few years ahead. The trade deficit in the past was cushioned by a surplus in net interest, dividend and investment income. This is not likely to happen in the future judging by the reductions in forecast pension-fund values, equity returns and so on.

The record current account deficit of £7.6 billion in the final quarter of 2001 should be seen in the light of the cumulative 1995-2000 trade deficit of £113 billion offset by a cumulative invisible surplus of £94 billion.

The next five years could see a similar cumulative trade deficit but a much smaller invisible surplus. The chancellor may just find a "yes" answer to the five economic tests for joining the euro rather than a "no" answer for all these reasons.

The newly industrialized countries are coming up fast and to keep up our competitiveness we shall have to act fast on long-term low interest rates, low inflation and a lower pound.

UK Monetary Policies: Interest Dilemma

2008-07-10T03:52:00.000-07:00

Date : 14 April 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK Monetary Policies

UK Monetary Policies

Interest dilemma

Sir - I found your article (31 March/2 April) very interesting which examined the monetary policy committee's dilemma when consulter demand and private borrowing is rising fast, making them inclined to raise interest rates to deflate the economy and also presented the counter arguments by Shushill Wadhwani that the increase may inflate rather than deflate the economy.

The 2.5% a year inflation target was set in 1997 when interest rates were generally higher than now. I believe the MPC should now urgently seek new guidelines from the chancellor in his next budget for several reasons.

First, UK GDP as part of the world GDP is only about 5%, Germany's being 10%, Japan's 20% and the US's 30%. Historically, all the latter countries (except the UK) had lower interest rates. To compete with them, we also need to keep interest rates low.

Second, there are signs of unease in the public sector and wage demands are now surfacing more regularly. Increasing interest rates will only fuel cost-push rather than demand-pull inflation.

Third, your article suggests that mortgage borrowing is rising at the rate of 10% a year. But house prices are rising at a similar rate. The increased borrowing may be partly for excesses, but partly for durable goods and construction and improvement of properties. So it is good for the economy.

Fourth, UK competitiveness in trade in manufacturing has risen very poorly compared with the rest of the world. If we take relative export prices as 100 in 1990, the 1998 prices were 117.2. By contrast, the relative import prices in 1998 were 108.6.

Fifth, if sterling has risen against the euro since the euro's inception, it will rise more by an increase in interest rates and our competitiveness will be even worse.

One idea could be to "aim" for 0% inflation in five years time by reducing the inflation target of 2.5% by 0.5% each year so that we reach the goal by year five. Long-term measures are far better than short-term measures. Whether we join the euro or not, our import-export trade with the European Union is 57% of our total international trade. It makes sense to aim to counteract the 25% appreciation of sterling since 1996 by a 25% depreciation of sterling against the euro by 2007. For all these wider reasons, I believe interest rates should remain very low constantly for at least the next five years.

UK Fiscal Policies

2008-07-10T03:46:00.000-07:00

Date : 10 February 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK Fiscal Policies

UK Fiscal Policies

Sir - Bill Jamieson's article (Taxing time 3/4 February) is Worthy of great scrutiny as it looks at almost every feasible type of increase in taxation the chancellor might introduce in the budget on 17 April.

Lower direct taxes encourage enterprise and the creation of wealth. Higher indirect taxes punish the poor. Whether poor or rich, we have not been able to change people's spending habits by change people's spending habits by changes in taxation.

So, the true reason for increasing the taxes must be for better public services. The election manifesto pledge in 1997 was fundamentally flawed. No government should play the tax or race card. In fact, manifestos stifle new ideas and are best used in a very limited fashion.

The chancellor will probably need £5bn to £7bn extra every year for the next few years as both consumption and growth are likely to be very low for a number of years. The markets have reached saturation point. Prime minister Tony Blair and Gordon Brown could kill two birds with one stone by introducing a new 5% lower rate and abolish personal allowances altogether.

At the same time, they could reduce the basic rate of tax of 22% to 20% and introduce a third rate and fifth rate of 30% and 50% so that Middle England at the lower earnings level would effectively pay lesser taxes at lower levels and higher taxes at higher levels more equitably.

The Treasury and IFS computer models could look into these proposals. I reckon it would bring in about £3bn extra income tax revenue.

In addition, the chancellor could introduce a new 20% Vat rate on luxury goods, such as cars. That would bring in another £3bn extra Vat income without hurting the poor.

Finally, Mr. Brown should be honest about reporting on how much public money may have been wasted during the last fiscal year by giving specific examples which with hindsight may not seem to have been the best course of action.

For example, £4bn was spent on burning 4m animals suspected of having foot-and-mouth disease. It may or may not have been a good thing to have done.

There may be other examples. By admitting their mistakes, they could win more respect for their endeavors.

Big Accountancy Firms: Separate Ways

2008-07-10T03:45:00.001-07:00

Date : 27 January 2002

To : The Editor, The Business

From : Nagindas Khajuria

Subject : Big Accountancy Firms

Separate ways

Sir - As an accountant for 40 years, I read your leader articles (20/21 January) with great interest. The Securities & Exchange Commission study that found the Big Five earning $2.69 in consultancy for every dollar in audit is interesting, but the idea just to split the five firms two ways is not the answer.

The commonly quoted and known consultancy, or non-audit, fees is generally further divided into tax planning, tax compliance, financial consultancy and operational, including HR, consultancy. The two divisions should be audit and tax planning, financial and operational consultancy as another.

There should be no cross-ownership of these two entities.

Auditing: Stretching a Point

2008-07-10T03:43:00.000-07:00

Date : 17 January 2002

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Auditing

Auditing: Stretching a point

I read your article on Lord Sharman's review of central government accounting ('Sharman fights burial' page 2. 10 January).

I wonder whether wider investigator powers for the National Audit Office, including access to private sector bodies that receive public money, is feasible.

It would be more practical to ensure that public money is guarded better before it leaves the public purse.

The analogy I would like to draw is as follows. Suppose I want to touch my right ear lobe with my hand. I could touch it by raising my right hand. Alternatively, I could raise my left hand which would go over my head, and touch it with my left hand.

UK Monetary Policies

2008-07-10T03:41:00.000-07:00

Date : 07 September 2001
To : The Editor, Sunday Times
From : Nagindas Khajuria

Subject : UK Monetary Policies

UK Monetary Policies

Exchange Rate : Geoffrey Dicks nightly highlighted the most fundamental problem we have - how to maintain a balance between exchange rate, interest rate, inflation rate and consumer demand (Business last week).

My view is that we should do whatever it takes to bring the British real effective exchange rate back to a realistic, sustainable level.

We could allow interest rates to fall further and further, even below the EU rate. Or we could reduce our target of a 2.5% inflation rate to 1.5%.

Alternatively, we could use the harmonized index that the European Central Bank (ECB) tracks. The Treasury could introduce this in the next budget.

And to limit consumer demand, we could introduce indirect import curbs such as discouraging imports f out-of-season fresh fruits and vegetables and so on.

Britain and the Euro - Reader's Response

2008-07-10T03:29:00.000-07:00

Date : 12 July 2001

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Britain & The EURO

Britain and the Euro

The letter from Nagindas Khajuria (Britain and the euro, page 15, 21 June) is all too typical of those who wish to railroad the voters of the UK into accepting the inevitability of increasing immersion in Europe. Far from this being the 'time for action' we still need to have a full debate about the euro, and not just on the short term economic benefits.

His statement that Europe is a local market with a 2000 year old cultural and civilization background similar to us is breathtaking in its ignorance of the last 400 years of British history. We have in fact spent much of this period resolving bloody wars caused by fundamental European ethnic and political problems.

Are we really ready to surrender our sovereignty to a German super state and set aside so casually the sacrifices made by so many? Yes, the economic arguments set out by Mr. Khajuria are persuasive, but our national strengths have always been multi-faceted, open to the entire world and free of bureaucratic constraints. If we submerge our identity in a club dominated by France and Germany, the principal axis of which is moving further east, we shall become within 50 years a peripheral blob bobbing largely ignored off the coast of this vast incompetent and impenetrable mass.

UK Trains: Hidden Costs

2008-07-10T03:24:00.000-07:00

Date : 21 October 2001

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK Trains

UK Trains: Hidden Costs

Sir - I agree with Nagindas Khajuria's view that Railtrack spent too much time developing its station rather than its tracks (Letters, 14 October). Some of our stations, such as Liverpool Street and Paddington in London, have improved immensely in appearance, but the primary role of stations is to be points of departure.

I believe the management of Railtrack became bewitched by the example of BAA, which after privatization set about turning its airports into shopping malls. The City should carry some of the blame. After Railtrack's privatization, we heard lots of talk from analysts about the "hidden property assets" in the company and little about hidden infrastructure costs.

UK Trains: Off The Rails

2008-07-10T03:22:00.000-07:00

Date : 14 October 2001

To : The Editor, The Business

From : Nagindas Khajuria

Subject : UK Trains

UK Trains: Off the rails

Sir - The government plan to set up a not-for-profit trust in the place of Railtrack should be reconsidered. To gauge their interest in talking a stake in the new group, the government should approach all the 25 Tocs (Train Operating Companies) for a vertically-integrated operation. Your front page story (7 October) states that it has already approached, probably National Express for exactly such an operation.

These Tocs should be reduced to four private successful rail companies with responsibility for tracks and signals over the next 25 years. Railtrack's mistake over the past five years was that it spent too much time, money and effort in developing stations rather than tracks. The mistake of the Tocs was to create 25 companies from one (British Rail), company instead of, say, four or five. The result is a jungle of complex fare structures, lack of punctuality, fatal accidents, blaming each other, etc.

The government has neither the time, the money nor the managerial ability to run Railtrack. Why should be infrastructure not be released to the Tocs?

Tongue Firmly in his Cheek

2008-07-10T03:20:00.000-07:00

Date : 16 August 2001

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Britain & The EURO

Tongue firmly in his cheek

What a fabulous letter from Nagindas Khajuria (page 13,26 July), There must an anagram in there to describe my feelings.

As I read it I enjoyed his selective view of European history but thought his tongue was in his cheek.

When I got to the bit where he describes the modern Europe as 'vibrant, fast moving, efficient powerhouse...' I collapsed on the floor, rolling around in agony of laughter, It was when I recovered that I realized the whole letter was a brilliantly conceived that I realized the whole letter was a brilliantly conceived joke (rather like the EU).

Well done, Nagindas, More power to your pen.

USA vs Europe

2008-07-10T03:14:00.000-07:00

Date : 15 March 2001

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : USA vs Europe

U.S.A. vs Europe

I have felt for a long time that the long hours syndrome is a typical British and American style of working.

Management perceives you to be more loyal when you work long hours, when in most cases you are just less productive.

We should lean more towards Europe than the US to learn more about a balanced life style.

The US has colonized us a coca-cola-isation has taken place with McDonald's, Kentucky Fried Chicken and Dominos Pizza.

One third of Americans are obese. One fifth of are obese. One fifth of British people are obese. It is all junk food with 2,500 calories per meal rather than 2,500 per day.

There is really no need for our prime ministers to rush to the US every time there is change of government. They have no more interest in our welfare than Europe has.

Trainspotters know best

2008-07-10T03:09:00.000-07:00

Date : 28 October 1999

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : UK Trains

UK Trains

Trainspotters Know Best

Your leader an Anglia Polytechnic University's article on rail delays and rail finance, (14 October) deserve careful scrutiny. There are acronyms galore: SPAD, TOC, TAC, MEAV, RAB and ATP. There are also percentages galore: 5%, 23% and 61% uplift on the value of Railtrack shares. Finally, there are rail companies galore: 25 of them.

SPAD means 'Signals Passed At Danger'. If there is sun or glare, the driver does not see the signal properly, so he cannot tell whether it is green, yellow, double yellow or red. I hope he errs on the safe side in future and stops.

TOC means 'Train Operating Companies'. The 25-odd companies ought to merge by April 2001 into a maximum of four: South East, South West, North East and North West.

TAC means 'Train Access Charges'. The new charges from April 2001 should be lower. They should have been based from April 2001 on operating costs, historical cost depreciation and a 5% return on factual asset base. While Railtrack's profits have been too high, the TOC's profits have been too low.

MEAV means 'Modern Equivalent Asset Values'. Current cost accounting is a misleading system. In any one year, the maximum replacement of assets would probably be only 1/30th of the asset base rather than 100% of the asset base.

RAB means 'Regulatory Asset Base'. This is to work out what Railtrack's reasonable return on capital employed should be to compensate shareholders fairly for their investment. There are so many variations in percentage uplift on market capitalization it may be best to drop this method. A net profit before tax falling between 5% and 10% of turnover would compare favorably with historical net profits in the motor industry.

ATP means 'Automatic Train Protection'. Computer software failure in signaling systems was blamed for the delay in completion of the Jubilee line extension. We shouldn't rely unduly on ATP.

I don't believe fines are the real answer to train delays, poor maintenance of signals and tracks, bad management, blaming one another, etc.

I have studied the causes of train delays. During the six months ended 30 September 1997, they were as follows: in 2,500,000 loaded train movements, there were 301,974 delays (12%) of 3 minutes or more; 36,726 (1.5%) due to maintenance and renewal causes; 265,248 (10.5%) due to other causes, signalman being late for work, etc.

The total number of minutes delay was 9,708,349 (3.88 minutes per train movement) during the six months; other causes were 7,160,383 (2.86 minutes per train movement).

While there were sub-divisions of the former types of causes, such as track and structures, power supply, control system and acts of God/Vandalism, there were no sub-divisions for other causes. Statistics for other causes should be developed into specific sub-division data rather than lumping it all under than lumping it all under other causes. Only then can we attempt to improve the rail industry as a whole.

Put an end to jingoism

2008-07-10T03:08:00.001-07:00

Date : 26 July 2001

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : Britain & The EURO

Put an end to jingoism

I refer to the letter from Geoff Wood (letters, Page11, 12 July). One is reminded of the Cold War, Star Wars, Entente Cordial, Splendid Isolation, Sick Man of Europe, King Henry of France from 12th to 18th century, non alignment, and so on.

The euro has come about as a result of the vision of European leaders going back about 60 years. They then had just come out of two world wars.

Had it not been for their gradual efforts and achievements in terms of moves towards a tariff-free market, more stable exchange rates, common agricultural policy, common defense policy, better social conditions for workers, and so on, we would already have witnessed a third world war by now. These 60 years have not seen any cultural or national diminution of the very distinct German, French, Italian or British cultures.

What has changed is that common economic interests have increased prosperity and reduced the chances of past ethnic or political problems.

The bureaucracy in the United Kingdom, if anything, is far greater than the bureaucracy in the rest of Europe.

The living proof of that is that the standard and cost of living in the UK is much higher than in several European countries. Europe, as it stands, is not a vast incompetent and impenetrable mass, as Mr. Wood says.

Europe is in fact a vibrant, fast-moving, efficient powerhouse of what is best in art, science, medicine, cuisine, fashion, technology, high quality public sector services, and the manufacture of goods.

The euro is merely a commodity that is used for settlement of transactions. It is nothing more. There is a costly waste of about 10% just in the spread between buying rate and selling rate when you convert and then reconvert from and to the same currency.

It is a fallacy to believe that somehow the sure reduces our sovereignty and our ability to manage our own economy.

Britain and The EURO

2008-07-10T03:02:00.000-07:00

Date : 21 June 2001
To : The Editor, Accountancy Age
From : Nagindas Khajuria
Subject : Britain & The EURO

Britain and the Euro

The time for surveys should now be over (In brief, page2, 7 June). It is time for action.

The benefits of joining the European single currency should be staring us in the face. Our exports to Europe and our imports from Europe are about four to five times our exports and imports from the American Free Trade area. Europe is a local close by market with 2000-year-old cultural and civilization background similar to us.

As an economic concept in action, the European single currency, will have about five times as much impact as the internet, as it will bind 300 million Europeans to genuinely work together in a price-transparent environment, free from exchange rate conversion costs, in a spirit of mutuality and co-operation.

In this century, it will be the Europe single currency that will be the most significant event surpassing the internet as the second most significant. Our pound already has two exchange rates: one for domestic sales and one for export sales.

Export sales are effectively achieved by discounting the exchange rate by 10 to 20% or quoting in US dollars. Going in at about three DM to the pound is quite reasonable even if the euro has now depreciated by about 30% in terms of US dollars.

Conversion costs at £36bn are exaggerated. With advances in computer software technology, it would be much less. There would be an instant market for British goods overnight when we change to the euro. The benefits would be in hundreds of billions of pounds.

Our economy is fundamentally stronger than many European countries and we would end up as one of the leaders in the pack.

IT and Outsourcing

2008-07-10T02:55:00.001-07:00

Date : 29 November 2001

To : The Editor, Accountancy Age

From : Nagindas Khajuria

Subject : IT & Outsourcing

IT and Outsourcing

I wonder why the Inland Revenue is not wising up after all those past IT contract failures.

For example, why don't they consider tendering piece meat, so that each contract is worth, say, one-hundredth of £4bn? As for national security, I do not believe that is an issue here at all.

Apart from IT, they also need to change their basic procedures. One example is to insist that tax returns are submitted without any supporting accounts and schedules.

These can even be submitted only for those boxes that are applicable. What a waste of papers and UK woodlands and national resources. What a waste of storage space.

Welcome to my blog

2008-07-10T02:47:00.000-07:00

Over the past few years I have had several articles published in the newspapers on a wide variety of topics. This blog has been created to share these with you. Please feel free to comment and start a discussion forum.

Best wishes
Nagin Khajuria