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Royalty
to SMC increased NEW DELHI, Apr 1: Having recorded a 20 per cent drop in profit after tax, Maruti Udyog Limited is likely to reduce..more NEW DELHI, Apr 1: The Board of Directors of the Gas Authority of India Limited (GAIL), which has been declared a .more NEW
DELHI, Apr 1:
ICRA has revised the rating assigned to fixed deposit
programme of Wipro Finance Limited.....more BONN, Apr 1: The European Commission forecast a slow-down in the economic ....more |
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Technology upgradation fund for textile/jute industry launched MUMBAI, Apr 1: Government today launched the much awaited technology upgradation fund for modernisation .more SC dismisses BPL petition against MRTPC order NEW DELHI, Apr 1: The Supreme Court today dismissed a petition by BPL Ltd challenging a MRTPC order restraining the ....more Mizoram will lose Rs 10 cr due to ban on lotteries AIZWAL,
Apr 1:
Mizoram, which depends on the Centre for 90 per cent of
its financial requirements, will lose ......more MUMBAI,
Apr 1:
Equities opened marginally better but failed to hold the
gains on the .......more |
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Royalty to SMC increased NEW DELHI, Apr 1: Having recorded a 20 per cent drop in profit after tax, Maruti Udyog Limited is likely to reduce the dividend payout this year to its joint owners — Government of India and Suzuki Motor Corporation of Japan. However, the royalty payment for 1998-99 to the Japanese partner has been hiked to Rs 83 crore from Rs 70 crore in the previous year. "With our bottomlines squeezing this year, logically, there will be a drop in dividend payout," senior officials in the company’s Finance Department told here today. However, the exact amount is yet to be decided. "It would be decided by the board of directors around june this year." The Board of Directors of Maruti Udyog Limited (MUL) had last year approved a dividend of 30 per cent, which amounted to Rs 40 crore. "The company had to absorb around Rs 150 crore due to the various upgradarions which it has brought about in its existing models as the entire cost was not passed on to the customers. This has also had a major effect on our bottomlines," the sources added. MUL had, during 1998-99, earned a profit after tax of Rs 522 crore, showing a drop of around 20 per cent over Rs 652 crore last year. Following a similar pattern, the profit before tax was down by 19.85 per cent to Rs 783 crore from Rs 977 crore. This is, in fact, the sharpest ever decline in the company’s 17-year history. Total income also took a dive to Rs 8,118 crore, down 4.2 per cent from Rs 8,474 crore. Faced with difficult market conditions and pressure on margins, the company’s internal generation went down to Rs 668 crore from Rs 793 crore. Despite a drastic cut in prices of most of its models, MUL’s total sales of vehicles declined to 309,094 units from 327,264 units. Production was down to 332,931 from 354,336 units. Exports too suffered and dropped to 24,410 units as against 25,994 units in the previous year. Interestingly, the company managed to show increase in its net worth by 23 per cent which improved to Rs 2606 crore from Rs 2123 crore. (UNI) |
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NEW DELHI, Apr 1: The Board of Directors of the Gas Authority of India Limited (GAIL), which has been declared a Navratna company by the Government on the basis of its sustained performamce, is expected to be restructured within a couple of months. Since it has been recognised as Navratna, four professional non-government directors will be appointed by the Government. Navratna companies are given more powers relating to financial and other matters and enjoy autonomy. The Board of Directors of Navratna companies has the power to sanction projects worth Rs 500 crore compared to that of a non-Navratna Public Sector Undertakings which has the power for sanctioning projects upto Rs 100 crore. If any project crosses that mark, the matter has be referred to the Government for approval, GAIL Chairman C R Prasad told media persons here last night. GAIL ended the 1998-99 financial year with "an excellent performance once again" by achieving the physical and financial targets under the MoU these included turnover and profit, Mr Prasad said. In 1998-99, GAIL achieved a turnover, including internal consumption, of round Rs 6,800 crore against Rs 5,736 crore in the previous year. The operating margin increased by 43 per cent to Rs 1,486 crore against Rs 1,041 crore in the proceeding year. The net profit was expected to be about Rs 1,000 crore, Mr Prasad said. GAIL maintained its track record in capacity utilisation. The capacity utilisation at the Vijapur and Vaghodia LPG plants was over one hundred per cent and the pipeline availability was over 99.9 per cent. The sale of gas during the just concluded financial year was 57,64 mmsmd against 54.93 mmsmd in 1997-98 financial year and the total production of hydrocarbon, including LPG, was 709,000 tonnes. The success was achieved despite shutting down ONGC for 22 days in April-May, floods in Gujarat and disruption in supplies in September last and the recent shut-down of the South Bassein resulting in reduced supplies for about 40 days. Enhancing the HBJ pipleline’s capacity from 18.2 to 33.4 mmscmd and increased in gas sales in the Southern region also added to the increased turnover, he added. By 2004-2005, the demand for natural gas in the country was expected to be 183 million cubic metres a day against the current estimated availability of 68 million cubic metres per day from indigenous sources. It was therefore one of major concerns of the GAIL which had started discussions with petronet LNG on marketing arrangement for the gas from the lng terminals. Besides, GAIL was involved with the import projects from West Asia and the Eastern region. GAIL was also looking at exploration and non-conventional sources for increasing availability of natural gas and other energy resources. It was examining the possibility of participation in exploration and production opportunities announced under the new exploration licensing policy by the Government it would endeavour to take up small areas for exploration in association with some international firms of repute, including the ONGC, Mr Prasad said. (UNI) |
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NEW DELHI, Apr 1: ICRA has revised the rating assigned to fixed deposit programme of Wipro Finance Limited (WFL) from MA" (under rating watch with negative implications) to MA (SO). The rating watch has now been removed. ICRA had placed the fixed deposit rating of Wipro Finance Ltd (WFL) on rating watch with negative implications in June 1998 following sharp deterioration in its operating and financial performance. WFL which was primarily operating in the lease and HP business with large exposures to the corporate segment was faced with the problem of sharp deterioration in its asset quality leading to rise in NPAs. As on March 31 1998, WFL had a gross NPA level of 31.3 per cent of total assets up from 15.9 per cent as on March 1997. ICRA had placed the rating under watch to evaluate the structured payment mechanism for repayment of fixed deposit obligations that was proposed by WFL. The revised rating takes into account the unconditional and irrevocable guarantee offered by Wipro Limited for repayment of entire FD obligation of WFL. The guarantee also includes a structured payment mechanism incorporating an Escrow account which is monitored by an independent trustee. Meanwhile an A1" rating indicating highest safety has been assigned to the enhanced Rs 12.75 crore commercial paper programme of Birla 3M Limited. Birla 3M is a subsidiary of 3M, USA. The company has a manufacturing facility near Bangalore, but is primarily engaged in trading of various products. The company recorded a profit after tax of Rs 4.05 crore on a gross future turn over of Rs 101.44 crore during 1997-98. The company’s growth which had slowed down in FY’98 is expected to be better in the medium term with the increase in product range and diversification of applications. The rating factors in the operational advantage that Birla 3M has in being a 3M company in terms of product range, credit period and managerial practices. The rating also factors in the financial flexibility that Birla 3M enjoys in terms of unutilised CC and other lines of credit. ICRA has also assigned an A1" rating to Rs 15 crore commercial paper programme of Goodrick Group Limited (GGL), indicating highest safety. The prospect of timely saving of debt/obligation is the best. The rating reflects the superior profitability and high cash accruals of GGL from a sustained period of buoyant tea realisations, conservative capital structure and comfortable liquidity position. The tea industry has witnessed period of growth in production coupled with high prices since mid 1997. The resumption of CIS buying, growth in domestic demand and low carry-over stocks kept the prices high during 1998. The company’s overall realisations increased significantly by 19 per cent in 1997 and further by 22 per cent in 1998 to Rs 96.6 per kg. With a projected drop in world production in 19999, ICRA does not expect a sharp decline in the realisations of GGL in the short term. (UNI) |
EC forecast slow-down of economic growth BONN, Apr 1: The European Commission forecast a slow-down in the economic growth in the eleven nation Euro currency zone but predicted that the economy will pick up later in the year. The Commission, the executive body of the 15-member European Union (EU), scaled back its 1999 growth forecast for Euroland to 2.2 per cent from the 2.6 per cent made six months ago. The Commission in its spring economic forecasts released in brussels attributed the fall in the projected growth of the GDP to the impact of recession in Asia, Latin America and Russia. After robust growth of three per cent last year, the Commission forecast that the economies of the eleven Euro zone countries would grow 2.2 per cent in 1999 and 2.7 per cent in 2000, down from the 2.9 per cent foreseen last October. Equivalent growth figures for the entire 15-member EU were 2.1 per cent in 1999 and 2.7 per cent in 2000 compared with the Commission’s October forecasts of 2.4 per cent and 2.8 per cent respectively. The Commission blamed the weaker 1999 outlook on global economic problems which have reduced investment and export volumes in Europe. (PTI) |
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Technology upgradation fund
for MUMBAI, Apr 1: Government today launched the much awaited technology upgradation fund for modernisation of textile, silk and jute industries, whereby it would provide a five per cent interest reimbursement and five per cent cover for exchange risk. The five-year open-ended scheme would target technology upgradation in existing units and setting up of new high-tech units to bring about qualitative improvement in production, productivity and quality by adoption of higher technologies, Textile Minister Kashiram Rana said at the lunch function at Industrial Development Bank of India (IDBI) headquarters here. The scheme expiring on March 31, 2004 would be operated by Government through designated nodal agencies—IDBI, SIDBI and Industrial Finance Corporation of India (IFCI). IDBI has been designated nodal agency for textile industry (excluding SSI sector), SIDBI for SSI textile sectors and cotton ginning and pressing sector and IFCI for jute industry. Rana said the procedure for the disbursement of interest reimbursement to the nodal agencies would be decided by the Textiles Ministry in consultation with the Ministry of Finance. Loans sanctioned till the last date of the scheme would be eligible for interest reimbursement and foreign exchange risk cover till they are repaid as per the normal lending period of the nodal agency. Normal prudential financial norms of project evaluation and funding of the lending agency would apply subject to technological parameters of the scheme, he said. (PTI) |
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SC dismisses BPL petition against MRTPC order NEW DELHI, Apr 1: The Supreme Court today dismissed a petition by BPL Ltd challenging a MRTPC order restraining the company from advertising its alkaline batteries as the longest lasting in the world. A three-judge bench comprising Justice S P Bharucha, Justice S P Kurdukar and Justice R C Lahoti dismissed the petition after hearing BPL counsel T R Andhiarujina who contended that MRTPC did not take into account the Swedish laboratory tests which were in favour of his client. The bench observed that if the Swedish laboratory tests were in its favour, the company better raise the matter before the MRTPC which has passed only an interim order restraining the company from publishing the claim on the battery jackets and advertisements. The MRTPC in December last year had granted an interim injunction on a complaint filed by Duracell India which said the advertisement by its competitor BPL was misleading and without basis amounting to unfair trade practices. Duracell, anticipating moving of the Supreme Court by BPL against the MRTPC order, had already filed a caveat application thus ensuring that the competitor did not get any ex-parte order from the Apex Court. (PTI) |
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Mizoram will lose Rs 10 cr due to ban on lotteries AIZWAL, Apr 1: Mizoram, which depends on the Centre for 90 per cent of its financial requirements, will lose Rs ten crore of its revenue earnings after the implementation of Union Cabinet’s decision to ban all state lotteries. The sale of lottery tickets is one of the main sources of income for Mizoram as sales tax was abandoned a decade ago. Though Chief Minister Zoramthana refused to comment on the Union Cabinet’s decision before studying it closely, sources in the Government claimed that he would raise the issue in New Delhi on April 9 with Deputy Chairperson of the Planning Commission as well as senior members of the Union Cabinet. The Chief Minister would leave for New Delhi on April 5. According to Finance Secretary C Lalchuma, while this year Mizoram earned Rs 1.5 crore from the sale of lottery tickets, the expectations for the next financial year were to the tune of Rs ten crores. According to sources, Chief Secretary H V Lalringa had directed the Finance Department to look for alternate means of raising additional revenue. Recently the State Governnment had revised the premium on lottery tickets by reducing prices to boost sales. During fiscal 1996-97 the state had earned Rs 16 crores from the sale of lottery tickets. Sales tax was suspended in the state a decade ago as most people could not paying tax on commodities which are available at almost double the price since most of the essentials are transported from neighbouring states. The Government’s bid to re-introduce sales tax had met with protests from various quarters, including the state business chamber. (UNI) |
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Equities open better but fall back on selling MUMBAI, Apr 1: Equities opened marginally better but failed to hold the gains on the stock market today due to profit taking in the form of squaring up by operators on the last day of the current settlement. The BSE sensitive index opened up at 3750.22 and moved in a restricted range of 3754.73 and 3720.07 before being quoted at 3720.49 at 1054 hours as against yesterday’s close of 3739.96. Reacting to the Government’s modified EXIM policy announced yesterday, dealers said initially the market had not responded to the fresh measures for the export turnaround in view of the concluding session of the current account that was shortened to only three trading days on account of two holidays, one on March 29 and other on April 2. Dealers, however, expect the market to rally sharply in the next settlement in response to fresh reforms and had not rule out possibility of the sensex touching the 4000-mark in the near future. Among the top ten gainers, Indian Rayon high the circuit breaker at the initial stages. Sun Pharma shot up by 7.90 per cent followed by supreme (5.74 per cent) and Satyam Computers (5.36 per cent). Punjab Tractor, however, dropped by 4.91 per cent, Guj Alkali by 3.29 per cent and Indogulf Fert by 3.23 per cent. (PTI) |
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