January 4, 2002

ISA Uncovers Hamas Missile Industry Plans

Canon Middle East, ACCPAC and Systronics sign regional mega-project

Lower JFTC and OFC price realisations to affect profitability of telecom cable companies

Indian Mutual Funds: IT Stocks hog the limelight

keralamonitor.com

Mumbai: A ranking of 136 mutual fund schemes on the basis of their risk-adjusted returns for the one-year, six-month and three-month periods ended December 31, 2001.On account of the political uncertainty after the gunfire in the Parliament House, which had led to a block in the Indo-Pak relations, the equity market had gone in a tailspin.

The Sensex gave a daily-annualised return of negative16% during December. Whereas, on the other hand, the IT sector moved up in December. The BSE-IT Index appreciated by 143% in Dec (daily-annualised return). Hence, those equity funds which had high exposure in IT sector gave good returns and moved up in the risk-adjusted ranking for December. e.g.: ING Growth Fund, Alliance equity Fund.

The same reason of political uncertainty had turned even the investors in the debt market cautious. On account of that, the funds, which had more investments in long-term Government papers, experienced a lot of volatility; hence turned more risky. They weighed higher on returns ranking but lower on risk ranking. e.g. Tata Gilt Securities Fund and Templeton G-Sec Fund.

For the one-year Risk-Adjusted Returns Rankings (RRRs) of mutual fund schemes, Pioneer ITI Prima Plus - Growth & Templeton India Growth Fund managed to maintain their positions as the topper & the second best respectively, even for the month of December in the Open-ended Equity funds. UTI Master Growth 1993 moved up by three notches to the 3rd rank.

In case of Closed-ended Equity funds, UTI Master Value Unit Plan 98 emerged as the topper from the 10th rank in November ended year. Canpep 92 & UTI Master Equity Plan 97 resp achieved the 2nd & 3rd rank, up from 8th & 7th rank, respectively. Thus, there were considerable changes observed in this category.

In the Balanced funds category, the topper in the November-ended year i.e. LIC Dhanraksha 1989 managed to maintain its top rank. It was followed by Prudential ICICI Premier & Cantriple, who had the same ranks last time for the year ended November 2001.

The General Debt funds had Jardine Fleming India Bond Fund - Growth as the topper, which moved up 3 notches. Reliance Income Fund - Growth managed to maintain its 2nd rank. HDFC Income Fund - Growth was on the 3rd position, which was the topper last time.

For the Gilt funds, the top slot was retained by DSP Merrill Lynch G-Sec Fund (plan B)-Growth. K Gilt - Savings - Growth & UTI G-Sec Fund-Growth were in the 2nd & 3rd position resp, which moved up from 3rd & 4th rank resp in November ended year).

In the Money Market segment, there was no change in the ranking of the top 3 funds. IDBI Principal-CMF-Liquid-Growth remained the topper, followed by Alliance Cash Manager-Growth & Sun F&C Money Value Fund - Liquid in the 2nd & 3rd slot resp.

In the Sector - Technology category, Pioneer ITI Internet Opportunity Fund & Sun F&C Emerging Tech. Fund maintained their ranks in the same order on the one-year RRRs. Alliance New Millennium Fund - Growth moved up to 3rd rank from 6th for the year ended November.

In case of Index Funds, there was no change in the ranks for the one-year period ended December 01 and IDBI Principal - Index Fund retained number one position. Franklin India Index Fund & UTI Master Index Fund were on the 2nd & 3rd slot resp.

The Mutual Funds Division of CRISIL.Com Ltd., a 100% subsidiary of Crisil, has compiled the risk-adjusted returns rankings of funds. The top performers on the Crisil RRRs Rankings for the moving one-year period ended December 2001 is attached at the end of this Press Release. The full list of the Crisil RRRs Rankings can be made available on request. Likewise, the full list of the RRR Rankings can also be accessed on the Crisil website: www.crisil.com.

From left to right : Adnan Minty - finance & operations manager, Canon ME Marc Van der Ven - Regional Manager, ACCPAC. Gordon Jones - President of Canon ME. Zareh Tutunjina, general manager of Systronics

Canon ME, ACCPAC and Systronics sign regional mega-project to automate Canon ME on ACCPAC e-business solutions, allowing Middle East and Africa operations to seamlessly integrate and exchange information with Canon mainframes in Europe. Systronics, ACCPAC partner in UAE, was hired to develop integration tools locally for deployment in Dubai and South Africa."

Lower JFTC and OFC price realisations to affect profitability of telecom cable companies

keralamonitor.com

Operating profits of cable producers are expected to decline in 2001-02, due to a significant decline in the operating profits of their jelly-filled telecom cable (JFTC) divisions.

According to CRIS INFAC, operating profits of the JFTC divisions are expected to decline, as a marginal increase in offtake, would be offset by the decline in operating profit per core kilometre (ckm). JFTC accounts for 80 per cent, while OFC accounts for 20 per cent of the aggregate turnover of the telecom cable manufacturers in India.

However, net sales of JFTC division of cable companies are expected to increase by 2.7 per cent, as the growth in offtake would be significantly offset by a decline in the average JFTC price realisation. In 2001-02, the price realisations on BSNL's JFTC tender are estimated to have declined significantly by 16 per cent, to around Rs 616 per ckm over those in 2000-01. The net increase in offtake would depend upon an additional order of around 70 lakh ckm from BSNL, in January 2002. If the JFTC offtake is lower due to a delay in the placement of the additional order, net sales of the cable producers will decline by over 3.5 per cent.

Offtake of OFC from BSNL and private telecom operators is expected to increase by around 80 per cent, in 2001-02. However, OFC prices have declined by 47 per cent in the bidding for BSNL's tender for 2001-02, as compared with those in 2000-01. The decline may be partly attributed to a decline in the prices of optical fibre, the main raw material, and to a more competitive bidding by some of the cable manufacturers for the 2001-02 tender.

Since April 2001, the prices of optical fibre have been declining, due to a slow-down in the network roll out plans of major international service providers. Optical fibre prices have declined from a high of around $ 80 per km in November-December 2000, to $22 per km by mid-December 2001. However, in 2002-03, the optical fibre prices are expected to increase and stabilise at around $30 per km.

During the April-September 2001 period, net sales of cable producers declined, due to a significant decline in the offtake of JFTC and OFC. There was some offtake of JFTC during the first quarter, due to the extension of the delivery period of BSNL's order, for 2001. However, there were no supplies to BSNL during the second quarter of the year. BSNL's orders for JFTC and OFC were placed in September 2001 and October 2001 respectively. Operating profits of the cable companies declined, as the companies manufactured cables in anticipation of orders, but had lower actual sales.

Jerusalem, 2 January 2002

ISA Uncovers Hamas Missile Industry Plans

keralamonitor.com

The ISA (Israel Security Agency) has recently arrested a member
of the Hamas from the Gaza Strip command who was sent overseas to
arrange funding for the Kassem missile project, and transfer of
the funds to Judea and Samaria.

Documents were found on the emissary describing in great detail
the development of the Kassem missile industry in the Gaza Strip,
those behind these activities, financial costs and the intentions
of the command in Gaza to transfer the accumulated knowledge and
experience to Hamas operatives in Judea and Samaria.

The emissary, Osama Zohadi Hamed Karika, born in 1974, resident
of Sejayeh Turkaman, was arrested on December 18, 2001, at the
Rafiah crossing. Under questioning, he admitted that during the
month of August 2001 he was recruited by Nidal Fathi Rabah
Farhat, a senior Hamas operative in the Gaza Strip. Farhat asked
Karika to leave on a mission to Saudi Arabia in order to
coordinate activities with members of the organization that he
would meet there. Farhat directed Karika to say that he intended
to make a pilgrimage to Mecca.

In September 2001, Karika departed for Saudi Arabia, where he
met, by prior arrangement, a Hamas member and passed on the
messages in return for which he received money earmarked for
activities of terrorist cells in the field.

At the beginning of December 2001, Karika was again asked to go
on a mission for Farhat. For the purpose of his departure, Karika
was furnished with medical documents testifying that the trip was
for medical treatment. During the course of the security check at
the Rafiah border crossing, he raised suspicions and was arrested
and handed over to the ISA for questioning.

Karika turned over to his investigators classified internal
documents that he had been asked to convey.

Security sources stated that the activities of Nidal Farhat, and
his intentions to copy the missile industry to Judea and Samaria,
are known to the Palestinian security mechanisms, which have
taken no action against him so far.