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ASSOCHAM
unveils NEW DELHI, Apr 30: NEW DELHI, Apr 30: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has prepared a blueprint for policy and.....more FICCI suggests steps for corporates restructuring NEW DELHI, Apr 30: The Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested a number of steps for facilitating corporate ...more Rs 450 cr FII, MF
investments fail to MUMBAI, Apr 30: Investments of Foreign Institutional Investors (FIIs) and Mutual Funds (MFs), together amounting to Rs 450.12 crore in equities ...more Inflation rate touches 60-week high of 5.55 pc NEW DELHI, Apr 30: Fuelled by substantial increase in mineral oil prices, the inflation rate touched its 60-week high of 5.55 per cent on April 15. . ....more TCL to invest $ 75 mln in Indian venture BEIJING, Apr 30: BEIJING, Apr 30: TCL, a leading Chinese electronics and white goods major is to pump in 75 million US dollars in a joint venture to make a range of electrical and electronic appliances in India, official sources said here today. ..more |
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Grains trade mixed NEW DELHI, Apr 30: Bullion maintained the trend in the second consecutive....more
BHEL registers all time high order booking of Rs 7214 cr NEW DELHI, Apr 30: The public sector engineering giant Bharat Heavy Electricals....more
SEBI will soon issue guidelines for licences of MF agents shortly NEW DELHI, Apr 30: The Securities and Exchange Board of India will shortly make....more |
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FICCI suggests steps for corporates restructuring NEW DELHI, Apr 30: The Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested a number of steps for facilitating corporate restructuring to take care of the deficiencies in the existing provisions. FICCI has said that incentives provided for corporate restructuring is negated by the excessive stamp duty. The rate of stamp duty varies between 10 per cent to 15 per cent on the current market value of the fixed assets regardless of the real networth of the enterprise after deducting the huge liabilities/losses that need to be simultaneously taken over. This has become stumbling block and needs to be tackled. The State Governments should be persuaded to reduce the stamp duty, it said. The chamber suggested that amalgamated company should be allowed to retain only 50 per cent and not three-fourth of the value of the assets of the amalgamating company. The amalgamated company should have the option to change the line of business or at least the present condition of continuing in the same line of business for five years should be reduced to two years. FICCI said that if the financial institutions approve any amalgamation/reconstruction, no further conditions of CBDT should apply so long as the terms set out by the financial institutions are adhered to. So called tax saving consequent to such mergers/reconstruction is not a bounty as if it is only a fraction of the corresponding much greater liability that the enterprise has to takeover and be saddled with. The limited tax relief only seeks to mitigate the losses and facilitate reconstruction of the companies which may not be otherwise viable and needs to be viewed holistically in the absence of any provision for carry backward of losses which exist in several other countries and are urgently needed in India too. FICCI has suggested that so long as the potential tax saving is credited to a reconstruction reserve which can be used only for the reconstruction/rehabilitation of the project and not for any other purposes, the benefit of carry forward and set off should be allowed. The tax authorities could always monitor the proper use of such reconstruction reserve, year to year, on the lines of the development rebate/investment allowance reserve that existed for so many years — a paradigm that wa stested and found satisfactory and successful. FICCI has said that demergers in relation to companies, means the transfer, in pursuance of a scheme of arrangement U/S 391-394 of the Companies Act should also be permitted through the approval of shareholders U/S 293(1)(A) of the Companies Act. It is stipulated that all the property (assets) of the undertaking being transferred by the demerged company immediately before the demerger becomes the property of the resulting company by virtue of the demerger. Only that part of the property which is mutually agreed upon should be required to be transferred. It has been provided that all liabilities relating to the undertaking should be transferred. Transfer of liabilities unlike transfer of assets, is not an unilateral act but also involves consent of the other parties. In any case, there are several liabilities which though relatable to the undertaking are on the company and not easily transferable separately. Only those liabilities relatable to the undertaking which care mutually agreed upon should be required to be transferred. The condition that the consideration should be paid only to the shareholders of the demerged company and not to the demerged company itself is unwarranted. A company hiving off its non-core business to help enable it to reinvest in the core business will not be able to do so because no consideration would be paid to. It should be provided that not only the shareholders but also the demerged company is eligible to receive considerations. FICCI is of the opinion that provisions of Section 43 B of the Companies Act needs to be amended to provide that statutory liabilities to the resulting company on actual payment basis. It needs to be clarified that the tax exemption would be available where consideration is paid party by way of issuance of shares and partly by way of cash payments or through other instruments owned by the resulting company to the shareholders of the demerged company to allow flexibility in this regard. The chamber suggested that the exemption as given to foreign companies under Section 79 (carry forward and set off of losses in the case of certain companies) should be extended to Indian holding companies also. Genuine business restrictions should be exempted from the purview of Section 79 of the Income-Tax Act. In the case of demerger, FICCI said that the period of holding of shares for computation of long term capital gains is not clear. It has to be clarified as to from which date the period of thirty six months shall be reckoned with whether from the date of incorporation of the company or the date of commencement of business or the date of the trial production or the date of start of the commercial production, a press release here said. (UNI) |
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Rs 450 cr FII, MF investments fail to lift market sentiment MUMBAI, Apr 30: Investments of Foreign Institutional Investors (FIIs) and Mutual Funds (MFs), together amounting to Rs 450.12 crore in equities during the last five trading sessions could not lift market sentiment as represented by the benchmark BSE sensex, which went up by a meagre 13.82 points. FIIs remained net buyers in the equities market to the tune of Rs 319.4 crore (USD 73.2 million) during the five sessions, when the benchmark BSE sensex was up only 13.82 points — from 4665.81 points on April 19 and 4679.63 points on April 27. But they unwound positions in the debt market by Rs 108 crore (USD 24.7 mn), bringing the total inflow of FII funds into the country during the period down to Rs 211.5 crore (usd 48.5 mn), according to the latest figures provided by the SEBI. FIIs have supported the market by pumping in Rs 370.9 crore (USD 85.1 million) into the equities even as mutual funds have unwound their positions by Rs 249.18 crore during the week ended April 19. Mutual funds have invested Rs 140.72 crore in equities and Rs 240.06 crore in debt market during the five sessions. FII investments during the month till April 27, 2000 touched Rs 2586.7 crore (USD 593.4 mn), while their total investment during the year, so far, was Rs 7,066.2 crore (USD 1620.8 mn). Their total investment since 1993, from when they were allowed to invest in the country, touched 42,533.9 crore (USD 11.8 billion based on the monthly average forex rates). (PTI) |
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Inflation rate touches 60-week high of 5.55 pc NEW DELHI, Apr 30: Fuelled by substantial increase in mineral oil prices, the inflation rate touched its 60-week high of 5.55 per cent on April 15. A week earlier, it had already reached a 55-week high of 4.64 per cent however ,it was just 3.42 per cent during the corresponding week ended April 16 in 1999. The latest inflation rate was calculated on the revised base of Wholesale Price Index 1993-94. The inflation rate of 5.55 per cent was the highest recorded since February 27,1999 when it had touched 5.59 per cent(base 1981-82). The 0.91 per cent climb was the sharpest in 197 weeks surpassing the previous increase of 0.77 per cent on July 13,1996. Uptrends witnessed in the inflation rate recently wa attributed to hike in prices of moong, raw jute, mineral oils and soft drinks. But fish, masur, biscuits, maida, atta, rice bran oil, rectified spirit and glass sheets became cheaper during the week under review. Many financial experts have opined that freight rate hikes coupled with budgetary proposals which came into effect from april one this year might push the industrial production cost resulting in still higher inflation rate in the coming months. A sharp jump in the index for fuel, power, light and lubricants was mainly responsible for Wholesale Price Index for all commodities(base 1993-94)rise for the third consecutive week by 0.9 per cent to 150.2 on April 15 from 148.9 in the previous week. The final Wholesale Price Index for all commodities(base 1993-94) stood at 146.1 on February 19 as against the provisional index of 145.9. The inflation rate based on final index worked out to 3.32 per cent in contrast to 3.18 per cent based on provisional index. However, the inflation rate based on Consumer Price Index for Industrial Workers, which is the real barometer of Indian economy, rose sharply by 1.22 per cent to 4.83 per cent in march as against 3.61 per cent in the previous month. It was 8.95 per cent in corresponding month last year. It had touched its lowest in November last year when it stood at zero per cent. The index for food articles, under the primary articles group, remained unchanged at its previous week’s level of 172.6 because the increase in prices of moong by three per cent, fruits up by two per cent, rice, gram, arhar, vegetables, fish (marine) and condiments and spices by one per cent. All this was neutralised with the decline in prices of fish(inland) by eight per cent, masur prices by three per cent, barley and eggs prices by two per cent, wheat, bajra and and maize price by one per cent each, The index for non-food articles rose by 0.2 per cent to 140.4 from 140.1 because raw jute became dearer by whopping 16 per cent, raw tobacco prices by two per cent, gingelly seed, linseed and fodder prices by one per cent. But the prices of rapeseed, mustardseed and copra prices fell by two per cent each. Hefty 10 per cent jump in the prices of minerals oils pushed up the index for minerals by five per cent to 182.3 from 173.6. With sugar prices up by two per cent, salt, coconut oil, groundnut oil and oil cakes up by one per cent each, the index for food products, under the manufactured products group, went up by 0.4 per cent to 151 from 150.4. But the prices of biscuits declined by four per cent, maida, atta and rice bran oil became cheaper by three per cent each, sooji, rapeseed oil, mustard seed prices dropped by two per cent each and bran prices dipped by one per cent each. Due to a sharp 18 per cent decline in the prices of rectified spirit, the index for beverages tobacco and tobacco products fell by by one per cent to 174.1 from 175.8. But the prices of soft drinks rose by whopping 10 per cent and Indian made foreign spirit prices moved up by two per cent. The index for textiles slid by 0.1 per cent to 117.2 from 117.3 because hessian cloth became cheaper by two per cent, hessian and sacking bags prices dipped by one per cent. But the the prices of tyre cord fabrics moved up by two per cent. Two per cent rise in the prices of acids( all kinds)jacked up the index for chemicals and chemical products by 0.1 per cent to 160.5 from 160.4. But the liquid chlorine prices declined by two per cent. The index for non-metallic mineral products rose by 0.3 per cent to 126.1 from 125.7 because railway sleepers became costlier by two per cent and cement prices went up by one per cent. But the glass sheets became cheaper by whopping 14 per cent. The index for basic metals, alloys and metals products went up by 0.1 per cent to 137.3 from 137.2 because the prices of pipes and drums rose by one per cent. But the LPG cylinder prices fell by one per cent. The indices that remained unchanged at their previous week’s level were minerals, wood and wood products, paper and paper products, leather and leather products, machinery and machine tools and transport and equipment. (UNI) |
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Grains trade mixed NEW DELHI, Apr 30: Bullion maintained the trend in the second consecutive week and moved northwards followed by sugar and oils while grains traded mixed at the local commodity markets during the week ended April 29. Gold and silver continued to loose glitter following reports of expected sale of gold by the Swiss Bank and amid increased arrivals. Demand for the ongoing marriage season was also over and prices in the international markets moved in a very narrow range during the week under review. Gold, standard, ornaments and bittur, declined by Rs 95 per ten grams at Rs 4,370 Rs 4,170 and Rs 4,310 respectively as against the previous week’s closing price range. Silver .999 ready moved down by Rs 83 at Rs 7,642 per kg and weekly delivery by Rs 108 at Rs 7,642 per kg during the week. Sovereign remained stable at Rs 3,800/3,825 per eight grams. Silver coins prices also did not also shed Rs 100 per 100 pieces at Rs 10,700 for buyers and Rs 10,900 for sellers as against the last week’s price band. Sugar: Sugar mill delivery and spot prices suffered a setback on mounting inventories coupled with lack of matching demand amid easy availability. Khandsari traded mixed during the week under review. Sugar mill delivery lost Rs 25 to Rs 35 at Rs 1400-1450 per quintal. As a result, spot prices for sugar (M-30) moved down by Rs 25 to Rs 30 to settle at Rs 1550-1570 and S-30 by Rs 20 to Rs 40 at Rs 1540-1550 per quintal as compared to last week’s closing price range. Khandsari bold lost Rs 20 at Rs 1470/1500 per quintal on increased offerings while desi variety managed to gain Rs 20 per quintal at the higher level at Rs 1400/1445 per quintal. Dust prices remained stable. Oil: Industrial and edible oils suffered a setback on increased import arrivals while oilseeds also lost ground on lack of support from bulk buyers while oilcakes recorded some gains and vanaspati remained stagnant during the week under review. In non-edible oils, palm fatty lost Rs 50 at Rs 1650/1850 per quintal on increased offerings while castor, linseed, mahuwa, rice bran, acid oil and neem remained stable as demand matched supplies. In edible oils, groundnut and palmolein declined by Rs 150 each at Rs 4050 and Rs 2370 respectively, followed by sesame, rice bran and soyabean degummed by Rs 100 each at Rs 2600, Rs 1750 and Rs 2350 per quintal respectively on increased import arrivals. Cottonseed, mustard expeller and soyabean also shed Rs 70 per quintal each at Rs 2350, Rs 2380 abd Rs 2280 per quintal respectively for the same reasons as compared to last week’s closing price range. In oilseeds, mustard was down by Rs 25 to Rs 30 at Rs 1100/1140 and sesame by Rs 200 at Rs 2100/2400 per quintal on mounting inventories. In oilcakes, cottonseed gained Rs 20 to Rs 35 at Rs 820/850 and mustard was up by Rs 35 to Rs 50 at Rs 575/600 per quintal while sesame remained stable under the week under review. Vanaspati did not witness any change as demand matched supplies. Grains: Wheat suffered a setback while rice and pulses registered gains during the week under review. Wheat desi moved down by Rs 50 at the lower level and Rs 25 at the higher level at Rs 800/1050 and dara slipped by Rs five per quintal at the lower level on increased arrivals coupled with lack of matching demand. As a result prices of atta, suji and maida also subdued. Rice parmal gained Rs 75 at Rs 925/1125 and parmal sela was up by Rs 50 at the higher level to settle at Rs 900/1100 per quintal on emergence of demand from despatchers. In pulses, gram recovered by Rs 30 at the lower level and Rs five at the higher level at Rs 1350-1420 and gram dal by Rs 50 at the lower level at Rs 1550/1900, urad flared up by Rs 200 at the lower level and Rs 175 at the higher level at Rs 1700/2500 and urad dhova by Rs 200 at the lower level at Rs 3000/3600 per quintal. Moong went up by Rs 150 at the lower level and by Rs 50 at the higher level at Rs 1950/2250 and masoor also gained by the same margin at Rs 1650/1850 and arhar gained Rs 50 at the higher level on tight supply position and emergence of demand from stockists as compared to last week’s closing price range. Coarse grains prices did not witness any change as demand matched supplies under the week under review. (UNI) |
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BHEL registers all time high order booking of Rs 7214 cr NEW DELHI, Apr 30: The public sector engineering giant Bharat Heavy Electricals Ltd (BHEL) has registered an all time high order booking of Rs 7214 crore during 1999-2000, a surge of 23.6 per cent over the previous year. This has been achieved despite a depleted market and intense competitive pressure in domestic and international markets. The company’s order inflow was worth Rs 5835 crore during 1998-99. The cumulative outstanding order book was around Rs 11,000 crore at the beginning of the current financial year. BHEL achieved a quantum jump in physical exports, recording the highest ever export order inflow of Rs 703 crore against Rs 250 crore in 1998-99, an increase of 181 per cent. This is considered significant as the market was witnessing structural changes and consolidation of major power equipment manufacturing companies, worldwide. It has also bagged most of the power plant orders placed during the year under open international competitive bidding in the country. Despite non-finalisation of several power project orders during the year, the company booked orders worth Rs 4008 crore against Rs 3281 crore last year in this category. It has won 86 per cent of its bids for power plant orders under this category in the domestic market since 1978 demonstrating its international competitiveness. BHEL’s bids have become benchmarks for MNCs to follow. Similarly, in BHEL’s industry sector business segment which contributes half of its turnover retained an over all success rate of more than 60 per cent during the year. In the overseas market, BHEL secured orders for prestigious gas-based and hydro projects. These orders included one from Iraq, which will be implemented after UN clearance. BHEL has also made an entry into large utility segment with turnkey orders for large size gas turbine based power plants from Oman and Bangladesh. (UNI) |
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SEBI will soon issue guidelines for licences of MF agents shortly NEW DELHI, Apr 30: The Securities and Exchange Board of India will shortly make it mandatory for agents of mutual funds to obtain licences from the regulator, SEBI Executive Director Ashok Kacker has said. Talking to mediapersons after addressing a seminar on capital markets, organised by the Delhi Stock Exchange here last night, Mr Kacker, however, did not give any time frame in this regard. He said currently there is no eligibility criteria for appointing these agents. SEBI will issue guidelines to remove these loopholes, he added. Though SEBI has not constituted any committee to go into the subject, it is looking into the issue under its mutual funds division headed by Mr Kacker. Addressing the seminar, Mr Prithvi Haldea of Praxis Consulting and Information Services said unless new methods of valuation of IT industry are evolved, primary market cannot be revived in India. He called upon SEBI to ask companies entering into the primary market to give details of its future acquisition plans. "At present though companies state that funds are raised for future acquisitions, the term acquisition is not clearly defined in prospectus," he lamented. He warned that unless these steps are taken, it boom will burst like that of non-banking financial companies in mid-nineties. Mr J Bhagwati, Finance Joint Secretary, said valuation in the Indian stocks market is not alarming. It is 50 per cent in India against 40 per cent at DoW Jones and 98.41 per cent at Nasdaq. However, Mr M M Kapur, Unit Trust of India Executive Director, said volatility in the Indian market cannot be minimised so long as the current imbalance between delivery based and carry forward trading is not reduced. At present the ratio between delivery based and carry forward trades stands at 18:85, he said. Mr P N Vijay, Managing Director of P N Vijay Financial Services, called for setting up of an investors’ protection fund to help hapless retail investors. (UNI) |
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TCL to invest $ 75 mln in Indian venture BEIJING, Apr 30: TCL, a leading Chinese electronics and white goods major is to pump in 75 million US dollars in a joint venture to make a range of electrical and electronic appliances in India, official sources said here today. TCL is expected to sign a Letter of Intent (LoI) with Baron International during the visit of a high-level Chinese delegation to India starting on May 1, a senior official told PTI here. TCL, as part of its expanding global business strategy, plans to make colour televisions, washing machines and air conditioners in India in a tie-up with the Baron International, led by Kabir Mulchandani. The signing of the LoI would be the highlight of the visit of the Chinese delegation from Guangdong province, the powerhouse of China’s rapid economic growth. The 35-member business delegation led by Guangdong’s Governor Lu Ruihua, is looking at India positively for investments and business opportunities, counsellor (commercial), Indian Embassy, Gautam Bambawale, said. Any tie up between Indian and Chinese enterprises reached during the visit could be a win-win situation for both sides as mutually beneficial cooperation would further boost India-China trade relations, he said. Indian Ambassador to China, V K Nambiar, who recently met Lu in Guangzhou city, welcomed the visit of the high-level Chinese delegation to India to explore business opportunities. Lu is scheduled to meet with Commerce and Industry Minister Murasoli Maran and is keen to have a meeting with the Information Technology Minister Pramod Mahajan. Maran, who has already announced plans to set up Shenzhen-style special economic zones in India, after his visit to Beijing in February, is expected to probe possibilities of cooperation with the richest Chinese province of Guangdong where Shenzhen is located, official sources said. Apart from Delhi, the delegation is scheduled to visit Mumbai and hold talks with the Chief Minister of Maharashtra and leading businessmen there. The Chinese delegation is comprised senior executives from Guangdong-based major firms like Konka, TCL and Kelon. The sources said the Chinese delegation is looking at increasing investments in India especially in the infrastructure sector. The Chinese side also wants Indian businesses, especially the Information Technology (IT) sector to venture into China, considered the world’s biggest potential consumer market. The visit of the Chinese delegation comes close on the heels of the successful visit to Beijing by Maran in February to revive the India-China Joint Economic Group (JEG) meeting and sign the market access agreement on China’s entry into the World Trade Organisation (WTO). During the JEG meeting, the two sides had decided to further explore business opportunities between India and China, which remains untapped due to various reasons, including the communication gap between the business communities, lack of direct air links as well as banking facilities. (PTI) |
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