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BHEL, LT gain on increase in govt expenditure

Written By Unknown on Kamis, 28 Februari 2013 | 21.03

Feb 28, 2013, 11.22 AM IST

Engineeing majors Larsen & Toubro and BHEL gained 1.6 percent to Rs 1433.90 and 1.16 percent to Rs 208.85 on Thursday on Bombay Stock Exchange, respectively.

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BHEL, L&T gain on increase in govt expenditure

Engineeing majors Larsen & Toubro and BHEL gained 1.6 percent to Rs 1433.90 and 1.16 percent to Rs 208.85 on Thursday on Bombay Stock Exchange, respectively.

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BHEL, L&T gain on increase in govt expenditure

Engineeing majors Larsen & Toubro and BHEL gained 1.6 percent to Rs 1433.90 and 1.16 percent to Rs 208.85 on Thursday on Bombay Stock Exchange, respectively.

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To download current article in Word format, click here.
Engineeing majors Larsen & Toubro and BHEL gained 1.6 percent to Rs 1433.90 and 1.16 percent to Rs 208.85 on Thursday on Bombay Stock Exchange, respectively.

The government plans expenditure of Rs 5.53 lakh crore for the financial year 2013-14.


To download current article in Word format, click here.

highlights

  • No case to revise direct tax rates, slabs
  • Super rich tax: 10% surcharge on income above Rs 1 cr
  • Increase excise duty on SUV's from 27% to 30%
  • No change in standard rate of excise duty, service tax

flashes

  • Budget Reaction: Fitch Says Policy Implementation To Be Key Driver Of India Rating
  • Budget Reaction: Fitch Says Believe Policy Execution Will Be Challenging
  • Budget Reaction: Fitch Says Public Finances Vulnerable To Further Growth Slowdown
  • Budget Reaction: Fitch Says Commitment To Fisc Cons, Despite Poll, Encouraging
more »

InterpretationS

  • GAAR-Presumes tax benefit unless proved contrary
  • MFs covered for deductions u/s 80CCG
  • Excise duty increased on mobile phones of Retail Sale Price (RSP) more than Rs 2000
  • ED on readymade garments exempted: positive textile sector
more »

SECTOR IMPACT

Select Sector to see impact

  • Auto - Cars & Jeeps
  • Auto - LCVs/HCVs
  • Banks - Private Sector
  • Banks - Public Sector
  • Cigarettes
  • Computers - Hardware
  • Computers - Software - Training
  • Construction and Contracting - Real Estate
  • Electricals
  • Engineering - Heavy
  • Finance - General
  • Finance - Investments
  • Infrastructure - General
  • Leather Products
  • Media & Entertainment
  • Mining/Minerals
  • Miscellaneous
  • Personal Care
  • Pesticides/Agro Chemicals
  • Power - Generation/Distribution
  • Refineries
  • Shipping
  • Sugar
  • Textiles - Denim
  • Textiles - General

Textiles - General

18:52 pm

Exice Duty on readymade garments exempted +ve for textile sector

TAX AND YOU

Salaried Person

REACTIONS

reaction on: Business

Subhrakant Panda

NULL | Indian Metals & Ferro Alloys

reaction on: Policy

Naresh Takkar

MD | ICRA

reaction on: Business

K Ullas Kamath

Joint MD | Jyothy Labs

reaction on: Policy

Kaushal Sampat

CEO | Dun & Bradstreet

reaction on: Markets

Rajesh Sud

MD & CEO | Max Life

What got Cheaper / costlier?

Download E-book free!

Get the moneycontrol
e-book

Everything you want to know about BUDGET 2013

Download Now FREE


21.03 | 0 komentar | Read More

Live Budget 2013-14: Educomp up 4% on 17% hike in allocation for education

Feb 28, 2013, 11.28 AM IST

Education stocks rallied quite sharply after the Finance Minister P Chidambaram hiked allocation for education programme by 17 percent in Budget.

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Live Budget 2013-14: Educomp up 4% on 17% hike in allocation for education

Education stocks rallied quite sharply after the Finance Minister P Chidambaram hiked allocation for education programme by 17 percent in Budget.

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Live Budget 2013-14: Educomp up 4% on 17% hike in allocation for education

Education stocks rallied quite sharply after the Finance Minister P Chidambaram hiked allocation for education programme by 17 percent in Budget.

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To download current article in Word format, click here.
Education stocks rallied quite sharply after the Finance Minister P Chidambaram hiked allocation for education programme by 17 percent in Budget.

Educomp Solutions rose 4 percent to Rs 88.30 while Everonn Education gained 5.78 percent to Rs 68.60.

CORE Education went up 6.8 percent to Rs 64.40 while NIIT rose 4.44 percent to Rs 24.70.

Aptech rallied 5.36 percent to Rs 50.10. 


To download current article in Word format, click here.

highlights

  • No case to revise direct tax rates, slabs
  • Super rich tax: 10% surcharge on income above Rs 1 cr
  • Increase excise duty on SUV's from 27% to 30%
  • No change in standard rate of excise duty, service tax

flashes

  • Budget Reaction: Fitch Says Policy Implementation To Be Key Driver Of India Rating
  • Budget Reaction: Fitch Says Believe Policy Execution Will Be Challenging
  • Budget Reaction: Fitch Says Public Finances Vulnerable To Further Growth Slowdown
  • Budget Reaction: Fitch Says Commitment To Fisc Cons, Despite Poll, Encouraging
more »

InterpretationS

  • GAAR-Presumes tax benefit unless proved contrary
  • MFs covered for deductions u/s 80CCG
  • Excise duty increased on mobile phones of Retail Sale Price (RSP) more than Rs 2000
  • ED on readymade garments exempted: positive textile sector
more »

SECTOR IMPACT

Select Sector to see impact

  • Auto - Cars & Jeeps
  • Auto - LCVs/HCVs
  • Banks - Private Sector
  • Banks - Public Sector
  • Cigarettes
  • Computers - Hardware
  • Computers - Software - Training
  • Construction and Contracting - Real Estate
  • Electricals
  • Engineering - Heavy
  • Finance - General
  • Finance - Investments
  • Infrastructure - General
  • Leather Products
  • Media & Entertainment
  • Mining/Minerals
  • Miscellaneous
  • Personal Care
  • Pesticides/Agro Chemicals
  • Power - Generation/Distribution
  • Refineries
  • Shipping
  • Sugar
  • Textiles - Denim
  • Textiles - General

Textiles - General

18:52 pm

Exice Duty on readymade garments exempted +ve for textile sector

TAX AND YOU

Salaried Person

REACTIONS

reaction on: Business

Subhrakant Panda

NULL | Indian Metals & Ferro Alloys

reaction on: Policy

Naresh Takkar

MD | ICRA

reaction on: Business

K Ullas Kamath

Joint MD | Jyothy Labs

reaction on: Policy

Kaushal Sampat

CEO | Dun & Bradstreet

reaction on: Markets

Rajesh Sud

MD & CEO | Max Life

What got Cheaper / costlier?

Download E-book free!

Get the moneycontrol
e-book

Everything you want to know about BUDGET 2013

Download Now FREE


21.03 | 0 komentar | Read More

Budget 2013: 0.01% transaction tax on non-agri futures trade

In a major setback to commodity exchanges, finance minister Chidambarm today proposed a transaction tax of 0.01 percent on non-agri futures traded on the bourses.
The commodity transaction tax (CTT), which is in similar lines of Securities  Transaction tax (STT), would work out to Rs 10 for transaction worth Rs 1 lakh.
"There is no distinction between derivative trading in the securities markets, and derivative trading in commodities markets. Only the underlying asset is different. It is the time to introduce commodity transaction tax in a limited
way," Chidambaram said while presenting Budget for the 2013-14 fiscal in the Lok Sabha.

"Hence, I propose to levy CTT on non-agricultural commodities futures contracts at the same rate as in equity futures, that is at 0.01 percent from the price of the trade," he said. However, Chidambaram said trading in commodity derivatives  would not be considered as speculative transaction and hence CTT would be allowed as deduction if the income from such transaction forms part of the business income.

Reacting to the development, the country's largest commodity bourse MCX managing director and chief executive officer Shreekant Javalgekar said, "CTT on selected items is not good. It will increase the hedging cost by 310 percent. It will reduce our global competitiveness."

He said the government has "targeted small segments and not currency futures." Much of non-agricultural items such as gold and silver are traded on the MCX. It may be recalled that Chidambaram had announced CTT of 0.017 percent while presenting the 2008-09 Budget. However,  the proposal was not operationalised due to apprehensions aired by then consumer affairs minister Sharad Pawar and PMEAC.

Amid speculation that the finance minister would impose CTT in the 2013-14 Budget to curb gold demand in view of high current account deficit, commodity exchanges and brokerage firms had made several representations opposing such a tax saying it will adversely impact the nascent market.
"With the imposition of CTT, the turnover will come down.
 It will negatively impact the market, especially MCX where
maximum of non-agricultural commodities are traded," brokerage
 firm SMC Comtrade Chairman and Manging Director D K Aggarwal
told PTI.

However, he said that the finance minister has provided some respite to traders by treating CTT not as speculative trade but as business profit/loss. The turnover from futures trade in farm items contributed only 13 percent of the total Rs 144.17 lakh crore during first 10 months of the current fiscal. The remaining 87 percent business came from bullion, metals and energy items.



21.03 | 0 komentar | Read More

Suzlon tanks 44% as promoters sell some stake for CDR

Suzlon Energy , one of the world's largest wind turbine suppliers, fell as much as 44 percent intraday to touch a new 52-week low of Rs 13.55 on Thursday after promoters raised funds for corporate debt restructuring (CDR) via stake sale.

Promoters sold 10.995 crore equity shares, representing 6.19 percent stake for total consideration of approximately Rs 240.4 crore.

"Part of the funds would be infused into the company under CDR mechanism and balance funds would be utilised to release pledged shares by repayment of loans taken by promoters," the company said in its release sent to exchanges.

After this stake sale, promoters' holding in the company stands reduced to approximately 44.46 percent.

At 15:09 hours IST, shares dropped 40.62 percent to Rs 14.40 amid large volumes on Bombay Stock Exchange.

Trading volumes increased more than 21 times to 15,11,26,341 equity shares as against five-day average of 72,35,813 shares.



21.03 | 0 komentar | Read More

Budget Reactions: FY14 Budget a mixed bag for automobile sector: SIAM

Budget 2013-14 has turned out to be a mixed bag for the automobile industry, according to RS Sandilya, President Society of Indian Automobile Manufacturers. While increase in tax of imported Completely Built Units (CBU) is likely to promote domestic auto manufacturers, hike in excise duty on sports utility vehicle was completely unanticipated.

However there still not absolute clarity on what category of SUVs will face higher excise duty. "We need to go to the fine prints to find out which are the vehicles which are impacted but I am happy that he has not distinguished between diesel and petrol,"  Sandilya told CNBC TV18

Below is the berbatim transcript of his interview.

Q: As far as the auto sector is concerned, excise stays; the tax on sport utility vehicle (SUV) is gone up from 27 percent to 30 percent. Some exemptions being continued as far as electric vehicles are concerned. But on imported vehicles and that is where we need clarity whereas on the bike side it is very clear, engines over 800cc will be taxed higher. What are you picking up as far as the clarity on the imported vehicles are concerned?

A:  He said imported Completely Built Units (CBUs) will be taxed and the increase in tax has been announced around 75-100 percent. To some extent the auto industry has always been saying that the imported vehicle duty should be increased as far as custom duty is concerned because we want to promote manufacturing in the country. So, from that point of view, it is a welcome move from the auto industry perspective, it will improve manufacturing and people will not get CBUs in.

Q: But a big negative as far as SUV makers are concerned?

A: As far as SUV excise duty is concerned, it is totally unexpected, from 27 percent to 30 percent is an increase, which is unanticipated. We need to go to the fine prints to find out which are the vehicles which are impacted but I am happy that he has not distinguished between diesel and petrol though most of the SUVs are diesel but not made a distinction from fuel perspective but the increase is still not necessarily a welcome move, we need to find out.



21.03 | 0 komentar | Read More

R Swaminathan, CFO Lupin on expectations from Budget

Written By Unknown on Rabu, 27 Februari 2013 | 21.03

Wed, Feb 27, 2013 at 18:00

Ramesh Swaminathan, President, Finance and Planning, Lupin Ltd shares his opnion on the upcoming Budget and also what expects from the union finance minister from a industry perspective.

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R Swaminathan, CFO Lupin on expectations from Budget

Ramesh Swaminathan, President, Finance and Planning, Lupin Ltd shares his opnion on the upcoming Budget and also what expects from the union finance minister from a industry perspective.

Like this story, share it with millions of investors on M3

R Swaminathan, CFO Lupin on expectations from Budget

Ramesh Swaminathan, President, Finance and Planning, Lupin Ltd shares his opnion on the upcoming Budget and also what expects from the union finance minister from a industry perspective.

Share  .  Email  .  Print  .  A+A-
To download current article in Word format, click here.
Ramesh Swaminathan,  President,Finance and Planning, Lupin Ltd shares his opnion on the upcoming Budget and also what expects from the union finance minister from a industry perspective.
To download current article in Word format, click here.

highlights

  • Economic slowdown a wake-up call for stepping up reforms
  • Future shift in RBI policy stance would be desirable.
  • Tight RBI policy led to sharper-than-expected slowdown
  • April-December data shows 5.3% fiscal gap aim 'achievable'.
more »

flashes

  • Economic Survey in favour of widening tax base and prioritising expenditure
  • WPI inflation may decline to 6.2-6.6% in March
  • Indian economy likely to grow at 6.1-6.7% in FY14
  • FY13 GDP growth seen at 5%
more »

InterpretationS

  • Railway minister has done a commendable job in meeting competing demands of improving services and controlling expenditure: PM
  • It is a reformist and forward- looking Budget: PM
  • If you look at the overall Budget, it was relatively muted and there was nothing exciting and no steps were taken, which would make the market happy: ICICI Direct
  • There is no major capex from the civil construction on the freight corridor, though some investments are coming on the metro side: KEC International
more »

SECTOR IMPACT

Select Sector to see impact

  • Cement - Major
  • Infrastructure - General
  • Mining/Minerals

EXPECTATIONS

expectation on: Markets

Anup Bagchi

MD & CEO | ICICI Securities

expectation on: Markets

Arindam Ghosh

MD & CEO | Blackridge Capital

expectation on: People

Saurabh Mukherjea

Head of Equities | Ambit Capital

expectation on: Markets

Ridham Desai

MD and Head Of India Research | Morgan Stanley

expectation on: Markets

Ashok Wadhwa

Group CEO | Ambit Holdings


21.03 | 0 komentar | Read More

BSNL cash reserves plunge 96% in 2 yrs to Rs 1,214cr

State-owned telecom major BSNL's cash reserves declined by a whopping 96 percent to Rs 1,214.44 crore in 2011-12 from Rs 29,355.5 crore 2009-10.

The company had a cash reserve of Rs 29,355.5 crore in 2009-10 fiscal, which declined to Rs 1,733.35 crore in 2010-11 and further slipped to Rs 1,214.44 crore in 2011-12, Minister of State for Communications and Information Technology K Kruparani said in a written reply to the Lok Sabha.

The loss-making company has drawn a blueprint to monetise its vast real estate as well has hiving off its tower arm over the next five years to increase revenues.

The proposals include utilisation of its real estate, monetising of towers assets, utilisation of its factories for revenue generation, providing broadband connectivity to schools and leasing out its CDMA network.

Telecom Minister Kapil Sibal has asked BSNL to submit plans that will help the company turn profitable.

Also read: Airtel to launch 4G services in Chandigarh by March-end

BSNL's losses have more than tripled to Rs 5,997 crore crore during 2010-11. The company had registered a net loss of Rs 1,823 crore during 2009-10.

In real estate, BSNL has about 4,400 hectare of total land bank. It also has seven telecom factories, where it plans to set up manufacturing facilities of electronic equipment in partnership with other manufacturers.



21.03 | 0 komentar | Read More

HDFC Bank to raise $500m from overseas markets

Country's second largest private lender HDFC Bank today hit the foreign debt markets with a USD 500-million bond issue, according to merchant banking sources.

"HDFC Bank is raising USD 500 million through a five- year US dollar denominated bonds (senior unsecured notes). The final pricing guidance has been fixed at 235 basis points (2.35 percent) above the US treasury," a merchant banking source, who did not wish to be identified, told PTI here.
The bank had on Monday launched a road-show in Hong Kong, Singapore and London for this, the source added.

Meanwhile, global rating agency Standard & Poor's said it has given a BBB- rating to the HDFC Bank senior unsecured notes.

It can be noted that 2013 saw many large corporates like Reliance Industries, ICICI Bank , Exim Bank, PowerGrid, Tata Communications , raising foreign debt.

While on January 7 this year, Exim Bank had raised USD 750 million in a European bond sale at the cheaper ever rate of 4 per cent for a 10-year money, which got an over-subscription of 8.5 times, within a week, the state-run distribution utility PowerGrid had raised USD 500 million at 3.87 percent for a 10-year USD issue which received an over-subscription of 19 times.

Also read: SBI raises fixed deposit rates by 0.25%

In the same week, the largest private lender ICICI Bank mopped USD 225 million from a seven-year Singapore bond sale programme on January 10.

The last week of January saw Reliance Industries hitting the market with a USD 800 million perpetual bond issue, the first by a domestic company.

The last week of the past month also saw Tata Communications becoming the first domestic un-rated corporate to tap overseas financial markets by selling bonds worth 250 million Singaporean dollars at a coupon of 4.25 percent, which got an over-subscription of 14 times the offer. This makes the overall fund raising by leading domestic corporates USD 2.525 billion this year so far.

Last Monday, the largest telco Bharti Airtel had hit the overseas market with a road-show to mop up USD 1 billion. Interestingly more and more domestic companies are raising funds from Asia as investors in the region have high regard for Indian debt, say merchant banking sources. Last year, domestic corporates had raised USD 8.15 billion from Asian markets, while the rest of Asia mopped up a record debt of over USD 208 billion through 353 deals.

Also more domestic borrowers are expected to access overseas markets for their funding needs as the rupee funds are still a costly affair.



21.03 | 0 komentar | Read More

Probe report on graft charges against Walmart by Apr: Govt

A government appointed one-man committee that is investigating alleged corruption charges against the retail giant Walmart in India will submit its report by April, Parliament was informed today.

"The government has decided to appoint one-man committee regarding media reports concerning Walmart vide resolution dated 31.1.2013. The committee has been asked to submit its report within three from months from issuance of the resolution," Minister of State for Commerce and Industry S Jagathrakshakan said in a written reply to the Rajya Sabha.

In January, the Union Cabinet had decided that the probe would be conducted by a retired judge of Supreme Court or Chief Justice of a High Court.

The committee was mandated to probe whether US retail giant Wal-Mart had indulged in lobbying activities by violating Indian laws to gain access to its market.

Also read: StanChart Bank wary of govt's ambitious growth targets

It was also mandated to inquire into recent media reports on disclosures of Walmart before the US Senate regarding their lobbying activities and details (and) whether Walmart undertook any activities in India in contravention of any Indian law.

As per the lobbying disclosure reports filed by Walmart with the US Senate, the company has spent close to USD 25 million (about Rs 125 crore) since 2008 on its various lobbying activities, including on the issues related to
enhanced market access for investment in India.



21.03 | 0 komentar | Read More

India offers opportunities for all: TataChem

Hello and welcome to the Forbes India Show. Over the last few years, one of India's oldest and most respected business groups, the Tatas, has been appointing a number of young CEOs to head some of its most prominent companies. We have one of them on our show today - Ramakrishnan Mukundan, who was appointed CEO of the Rs 13,000-crore, Tata Chemicals Limited (TCL), in 2009 at the age of 42.

Note: This piece was originally published on Sep 15, 2012

Below is an edited transcript of the interview on CNBC-TV18.

Q: Were you briefed about a plan to have younger executives lead companies across the group?

A: I think the group has gone through a lot of transformational changes and I could'nt tell if there was a grand design because I was part of the process. But now in hindsight, it looks like there was probably a grand plan.

Q: You took over a company in the middle of transforming from a largely commodity company to a consumer-oriented one. Is that that one of your ambitions for the company?

A: I think I would like to add a lot more consumer-oriented products to the table. We certainly believe that we will do well as a we have evolved a formula that works in the market place. So clearly, the transformation is part of an conscious initiative to highlight the company's presence in the public eye. A chemical company is an invisible entity, but we emerged to the fore thanks to a brand called Tata Salt which gave us tremendous consumer presence,

Q: So you realised that Tata Salt was an unique brand?

A: Yes, and we decided to build on that. And the journey has been exciting and the team has worked to get new products off the table. I think the team has learned and is still in a process of learning.

Q: I can understand the move into food which is a bigger market thanks to Tata Salt which is available at all grocery stores. So, your foray into pulses is a natural fit. But what were the synergies in your water purifier brand Swach?

A: It is mainly around technology. I think we found a technical, low cost solution that did not require electricity, water supply and yet purified water. Though the product was thought to be a fit for a consumer-durable company, there were no takers. So we had to take this to the market place ourselves.

Q: So you did actually look around for a consumer-durable company?

A: We debated a lot at that point of time and realised that at the end of the day that when we were selling the water purifier, that what we were actually selling was the replacement cartridge which, like any replacement cartridge, is a non-durable.

Q: How many have you sold?

A: We have sold over a million now in two years and I think we selling about half a million a year. So, we are selling half of our target of selling a million every year.

Q: And how big is the opportunity in the food sector? The packaged food segment has been touted as a big opportunity for a long time. Has the segment attained significant size?

A: We find the sector very interesting - from loose to packaged to processed. We have decided to start with packaging items that are today sold loose and give it an assurance of quality assurance and brand value. So after salt, we have entered the pulses category. It's the single-largest loose product being sold in retail stores today. So our effort is to sort, package it, brand and give it the quality assurance it needs.

Q: But is it getting the traction you estimated?

A: The foray is growing slowly because of the difficulty in establishing a price. Commodity food prices witness regular fluctuations and it is tough to keep changing the price of a packaged product with brand value. So, we want to solve this problem before we expand.

Q: Where do you see Tata Chemicals in 5-10 years? What will it be- a commodity or consumer retail or a technology company?

A: We have always articulated that we will always be a chemicals company. But the proportion of the non-commodity or specialty chemicals and branded products arm has grown over the last six-to-seven years. In 2004, they were about 11%. Seven years later the proportion is at about 22% and in another seven years it will probably double and become 40-50% of the company.

Q: Can you give us a break-up of the growth regarding growth abroad and in India? The company's earns a total revenue of about 40% from overseas. Are you seeing a larger growth of branded products in India or overseas?

A: We understand the Indian consumer so I think we want to focus on the consumer side of the business in India and adjacent markets. I think the Indian diaspora may extend the reach of some of our products into Africa.



21.03 | 0 komentar | Read More

NTPC Board okays Rs 12,953cr investment for expansion plans

Written By Unknown on Selasa, 26 Februari 2013 | 21.03

State-run NTPC today said the company's Board has given investment approvals to expansion projects involving Rs 12,953.12 crore.

"Board of Directors of the company have accorded investment approval for the Chatti-Bariatu coal mining project having production capacity of 7 MTPA (million tonnes per annum) in Jharkhand at an appraised current estimated cost of Rs 1,314.57 crore," NTPC said in a regulatory filing to the stock exchanges.

The Board also approved the appraised current estimated cost of Rs 11,638.55 crore for the Gadarwara Super Thermal Power Project, Stage-I (2x800 MW) to be implemented in Madhya Pradesh.

Also read: Coal India sure of NTPC signing FSA; warns of price hike

The project is subject to environmental clearance of Ministry of Environment and Forests.

Meanwhile, the company today also signed a Memorandum of Understanding (MoU) with Chhattisgarh Renewable Energy Development Agency (CREDA) to explore the potential of geothermal resources and subsequently implement geothermal project at Tattapani in Chhattisgarh.

Geothermal generation is the harnessing of the geothermal energy or the vast reservoir of heat energy stored in the earth's interior for generating power.

Shares of the company closed at Rs 151, up 0.73 percent on the BSE.



21.03 | 0 komentar | Read More

Railway Budget 2013: Focus should have been on freight corridors, says Kalindee

Railway Minister Pawan Kumar Bansal did not hike passenger fares today, but said that fuel-adjusted component for freight tariff would be implemented, which would raise freight by average 5 percent.

Reacting to the Railway Budget 2013, AP Verma, Director- Finance, Kalindee Rail  said, the railway minister should have given importance to freight corridors . The contracting for Dedicated Freight Corridor (DFC) projects is underway; some concrete steps to fast-track the implementation of this project would have given a huge boost to railways.

Also, there was no mention about high speed trains, which according to Verma is need of the hour.

Post the Railway Budget shares of companies supplying equipment to the Railways fell quite sharply as no big orders are seen coming into these companies from what was proposed today.

Below is the edited transcript of AP Verma's interview with CNBC-TV18

Q: Freight charges may go up by about 5 percent, passenger fares not to be raised and somehow the math is not adding on whether they will really be able to make up 30 percent more from the passenger traffic it is assume to be 30 percent or 28 percent higher?

A: There is no emphasis on freight corridor. People were expecting some announcement on that front because this was the election year, and there should have been more push. We are much behind. They have projected work that is to be done in freight corridor, which has the potential to change our entire economy. Also, there was no mention of high-speed trains.

China has high speed trains, I don't know when we will reach that level.We are still lagging behind, even as far as normal trains are concerned. They have identified seven corridors, but I don't think there was any mention in the Budget.

Q: What is your sense for your stock from what was announced? Is there any company wise gain that you see?

A: I think the market has overreacted. The Budget is not as bad as far as we are concerned. The addition of 500 lines is not a very encouraging figure, but in the signaling sector we are one of the leading players in the country and we are also operating in mines connectivity and connectivity segment. These are mainstream business today. The Budget is not as bad as people think rather our order position is nice and we will continue to add to that in times to come.



21.03 | 0 komentar | Read More

Rail Budget 2013-14: Gateway Rail upset with only freight rate increase

Railway Minister PK Bansal today announced a somewhat populist  Railway Budget . He did not hike passenger fares, as that was done in January this year. However, he announced that a fuel-adjustment component will be introduced on freight rates from April 1, which will result in less than 5 percent increase in rates.

Sachin Bhanushali of Gateway Rail Freight told CNBC-TV18 that increase in freight rate alone is not a good thing to happen and he was expecting a bit of fuel surcharge on the passenger fare as well.

Below is the verbatim transcript of his interview to CNBC-TV18

Q: One did not hear much about containerization or those kinds of projects in speech itself? What are your thoughts?

I am a bit confused because the Budget speech started with the resource mobilization and trying to balance the difficult act of meeting expenditure out of the revenue. The operating ratio is reportedly down to 88.8, but how has this been achieved despite an increase in the operating cost. This has not been explained.

Increase in freight rate alone, is not a good thing to happen to all of us. I was expecting that at least a bit of a fuel surcharge on the passenger fare would also come in. however, that does not happened.

In addition to that, one more thing which comes to my mind is that railway accounting practices have always been on the cash basis. They have never followed the balance sheet approach, wherein accruals are considered. One has accounts receivables and accounts payables as a part of the balance sheet.

So, it is possible to have a lower operating ratio by not paying your expenses during the current financial year. I hope that is not the case here.

As far as the overall numbers for the Budget 2013-2014 are concerned, they look impressive.  But, so did the numbers for 2012-2013 look when the last Budget was presented.

So we will have to see what are going to be the revised estimates or the Budget estimates which had been given for the next year.

Q: I wanted to check with you on this coal mine connectivity projects and the port mine connectivity where Rs 4000 crore and Rs 9000 crore has been disbursed respectively. How much of a positive do you think that would really be going ahead?

Traditionally railways have been servicing both power as well as coal sector right up to the door. I don't think there has ever been a problem of port connectivity as well as the mine connectivity.

There are some new ports which are coming up. There the rail connectivity is not available, for instance on western coast we have Hazira Port which doesn't have rail connectivity. So, I am sure by investing in port connectivity projects and particularly attracting private capital into these projects, there will be a relief. As far as a resource mobilization effort of Indian Railways for network expansion and getting more freight traffic is concerned, it will definitely take place.

The container sector seems to have been spared because we have already been given two doses of rate increase in December and February. This in any case was expected.

Infact we were expecting that there would be some kind of relief which will be given to the container transport operation sector, train operator sector. That hasn't come through. As far as dedicated freight corridor is concerned. I feel that after six years we are still in the stage of giving tenders. So, the gestation period here is going to be much longer than what we expected.



21.03 | 0 komentar | Read More

Rail Budget 2013 Live: Electrification of 1200 km positive says KEC Intl

Railway Minister PK Bansal today announced the Rail Budget for 2013. The main highlight was the passenger fares which were kept unchanged despite railways suffering huge losses.

In the Budget there was mention about electrification of about 1200 kilometers (km). Bansal also spoke about construction work for 1500 km on two corridors to be started by 2014 end.

Speaking to CNBC-TV18 Ramesh Chandak, MD, KEC International said there were two positives for them. One is the electrification of 1,200 km. Two, the increased investment on signaling, he added.

He further added that overall there is no major capex on the civil construction on the freight corridor and other things, though some investments are coming on the metro side.

Chandak was disappointment on the capex front because if that would have come, the overall investment would have increased. The amount of investment which goes in the signalling and electrification is not very large. "We were expecting a lot of investments on the dedicated freight corridor and other railway lines, which were not to our expectations," he added.



21.03 | 0 komentar | Read More

Plants commissioned before Mar 2009 not under price pooling

Power plants commissioned up to March 31, 2009, will get coal at Coal India 's notified prices, which would address concerns of states over 'price pooling' of the dry fuel, the government said today.

"In the CCEA (Cabinet Committee on Economic Affairs) has decided that in respect of plants commissioned up to March 31, 2009, domestic coal will continue to be supplied as hitherto at CIL's (Coal India) notified prices," Coal Minister Sriprakash Jaiswal said in a written reply to the Lok Sabha.
    
"This addresses the major concerns of states with regard to price pooling," the minister added.
    
The minister further said that some of the state governments had expressed reservation on the mechanism and in meeting held with power utilities "five power utilities agreed to the price pooling, while 10 power utilities opposed it."
    
"A detailed note on pooling of price of imported coal with domestic coal was sent by the Ministry of Coal to Cabinet Committee on Economic Affairs. The CCEA considered the note ... and has decided on certain guidelines for pooling of price," the minister said.

Also read: Railways plan Rs 4,000cr invst for coal mines connectivity
    
A report on the mechanism was prepared by Central Electricity Authority (CEA) in consultation with CIL.
    
CIL had said price pooling is a mechanism to implement fuel supply agreement (FSA) that it has to sign with power companies. If price pooling is approved, then 15 percent supply of imported coal "will be not in the cost plus method, but in pooling mechanism", it had said.
   
The CIL board had earlier approved the modified FSA without price-pooling, for assured supply of 65 percent through domestic sources and 15 percent from imports at cost plus basis.
   
Many state governments, including West Bengal, have voiced their opposition to the price pooling issue as they fear that this will lead to increase in electricity tariffs.



21.03 | 0 komentar | Read More

HCL Infosystems outsources manufacturing facility to Astra

Written By Unknown on Senin, 25 Februari 2013 | 21.03

HCL Infosystems today said it has outsourced its manufacturing facility located at Ambattur,Tamil Nadu to Goa-based Astra Global.

Through this partnership, Astra will supply products manufactured in the Ambattur facility to HCL for its internal requirements as well as to HCL's customers, HCL said in a statement.

"The partnership will enable both HCL and Astra to focus on their respective core competencies," it added.

The manufacturing facility specialises in networking racks, specialised custom designed sheet metal enclosures, ticketing and self service kiosks and subsystems for medical and aerospace products.

Also read: Why is HCL Tech's PE multiple not reflecting good earnings?

"Through this partnership with Astra, our customers will get the best of both HCL's strengths in design and service and Astra's manufacturing prowess," HCL Infosystems CEO and Whole Time Director Harsh Chitale said.

Astra is engaged in the business of manufacturing precision assemblies for medical and engineering industries. "We look forward to our association with HCL where we will bring our manufacturing capabilities to leverage HCL's
product design and customer specific solutions design. We intend to have a pan-India presence through this venture," Astra Global Managing Director Satish Shinde said. Shares of HCL Infosystems closed 1.74 percent down at Rs 33.85 apiece on BSE.



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Sistema India only applicant for March airwaves auction

Russian conglomerate Sistema's Indian mobile phone unit is the only company that has applied to bid in an airwaves auction due next month, a senior government official said on Monday.

Earlier, Sistema Shyam TeleServices Ltd had said it had applied to participate in the sale of spectrum in the 800 megahertz band, used by carriers operating on the CDMA (Code Division Multiple Access) platform.

India is planning to sell airwaves worth at least Rs 43,000 crore in three frequency bands in the auction due to start March 11. The sale is seen as crucial to helping the Indian government cut it fiscal deficit.

Also read: Vodafone India selects Mycom for network performance

($1 = 54.2000 rupees)



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SC refuses to grant more time to Sahara to refund Rs 24K cr

The last hope of Sahara group to get more time to refund Rs 24,000 crore to its investors was today dashed in the Supreme Court which dismissed its plea and pulled it up for not complying court's earlier order to return the money by first week of February.

A bench headed by Chief Justice Altamas Kabir, which had earlier extended the deadline to two companies of the group for refunding the money from November end to first week of February, refused to grant more time.

"If you have not refunded the amount as per our order then you have no business to come to court," an angry Chief Justice said adding that it had earlier granted time only to ensure that investors get their money back.

Two companies of Sahara group--Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)--who along with Sahara Chief Subrata Roy are facing contempt proceeding in the apex court before another bench which had on February 6 allowed SEBI to freeze accounts and seize properties of its two companies for defying court orders by not refunding the money to investors.

Also read: SEBI free to seize properties of Sahara Group companies: SC

As soon as the matter was taken up for hearing the Supreme Court Bar Association President M Krishnamani stood up and objected that the bench headed by the CJI should not hear the case as the order for refunding the amount to investors was passed by another bench.

"As a Bar leader I have to say keeping with the tradition of this court and this bench should not have heard this matter and the matter should go to the same bench for the modification of the order. Instead of going to hear, the proper recourse would be for the other bench to hear it.I am at pains to hear different types of rumours," he said.

Justice Kabir then got angry and said that he is making statements without knowing anything about the case and asked him to sit.

"How do you know what is going to happen in the case. If something happens then you say. Kindly take your seat," he said.



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Asia to get almost 10,000 planes over 20 years: Airbus

Asia-Pacific carriers will take delivery of 9,870 new passenger and cargo aircraft valued at USD 1.6 trillion over the next 20 years, European plane manufacturer Airbus said.

The region will account for 35 percent of aircraft deliveries worldwide and 40 percent of the market in terms of value during the period, putting it ahead of Europe and North America, Airbus said in a statement.

Airbus expects a total of 28,200 new aircraft deliveries globally with a market value of USD 4.0 trillion in the next 20 years.

"Everything is going to grow, but the shift to Asia-Pacific in terms of market share and market presence is going to be enormous," said Airbus chief operating officer John Leahy.

Also read: Why are airlines keen to offer seats at throwaway price?

"Growing economies, bigger cities and increasing wealth will see more people flying, driving the need for larger and more efficient aircraft," he told journalists in Singapore. Emerging markets like China and India as well as the growing middle class in the region are powering demand for new aircraft, Leahy said, with Asia-Pacific carriers favouring wide-body models.

The size of the middle class in the Asia-Pacific region is expected to increase fivefold from 746 million in 2011 to 3.4 billion in 2031, according to estimates cited by Airbus.

In contrast, the number of people making up the middle class in North America is expected to drop while a modest increase is predicted for Europe during the 20-year period. Domestic travel in the United States, which currently holds the largest share of world passenger traffic, is also expected to be matched by travel within China in 2031 at 10.4 percent of the global total.



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Expect order on Tata Power, Adani Power cases soon: CERC

Pramod Deo, chairperson, CERC, says that the orders on petitions moved by Tatas and Adanis seeking higher tariff for electricity generated from their imported coal-fired projects in Gujarat will be announced soon.

He also pointed out that, currently all State Electricity Board (SEBs) are not in bad shape, only 4-5 of them need to be re-looked at.         

Below is the edited transcript of his interview to CNBC-TV18.

Q: Central Electricity Regulatory Commission (CERC) hearings on both Tata Power and Adani Power pleas have gone on for over three months and there are some unconfirmed media reports which indicate that a final verdict is likely by the end of this month. What is your view by when there could be final judgment on these cases?

A: We have completed the hearing and in last hearing both the lawyers of Adani and buyers Gujarat and Haryana were directed to file their written arguments in a week's time and now the commission will deliberate. I definite timeframe cannot be given as there are certain issue involved. Very soon we will come out with the order on both Tata Mundra and Adani cases.      

Q: Will this be the final judgment or do both the parties have the option of further litigation in higher courts?

A: I do not think one can be categorical that it will be binary and it cannot be appealed. The order can be appealed. We have to see the gamut of arguments which have been given in this case, why it should be re-looked.

First, change in law, change because of fuel cost it is a forced measure and the impossibility of executing this contract due to rising prices and they are demanding that financial equilibrium should be restored, because in both the cases the sister concerns own mines in Indonesia, so when the Indonesian government has decreed that the coal should be sold at a rate which they will notify every month than what the sister concern gave.       

When we talk about financial equilibrium how that benefit will be passed on that is what they are referring to. These things have to be considered and based on it we can see if we can intervene.

Q: While all states have responded encouragingly to the State Electricity Board (SEB) restructuring package, nothing much has happened by way of actual groundwork either by additional states signing on for restructuring or by way of increasing tariffs. By when do you think we could see a material turnaround in the financial health of discoms?

A: Fortunately, not all states are in similar position. We are referring to only five-six states where the situation is alarming. Interestingly, as a forum of regulator we are directed to frame a Financial Responsibility Act and come out with a draft distribution sector responsibility so that the states can be bound by a statute to follow certain practices. We are working on that but it should be enacted by different states. So, the issue is limited to few states. Things are moving at its own pace as it is a process between the Center and the state.        

Q: Both coal price pooling as well as finalization of case-II bidding norms are imperative steps for the revival of power sector and yet again there have been some amount of direction to another advisory committee for finalization of modalities, etc. By when can we hear final announcements on these two very important reform measures which are imperative to the power sector?

A: We are not directly involved in that as a regulator. The first issue will have to go through full cabinet, so always there would be argument for and against it. We have to see what will be the time frame for the second issue. The minister has conducted a meeting of advisory committee for standard bidding documents (SBD) which he has set up.

This issue was raised in the meeting and the minister said that more consultation will be conducted before going to group of ministers. So, based on this consultation, group of minister will decide on final documents for case-II bidding.



21.03 | 0 komentar | Read More

SAIL to invest Rs 72,000 crore: CS Verma

Written By Unknown on Minggu, 24 Februari 2013 | 21.03

State-run steel maker SAIL would invest Rs 72,000 crore to increase its overall capacity from 13.82 million tonnes to 23.46 million tonnes and enhance its iron ore production, company Chairman C S Verma said here today.

"A sum of Rs 72,000 crore is being invested to increase the overall capacity from 13.82 million tonnes to 23.46 million tonnes and we have already placed orders worth Rs 58,000 crore till January last," he said.

Out of Rs 72,000 crore, Rs 10,284 crore would be used for development of SAIL mines under Raw Material Division (RMD) to increase the production of iron ore. The RMD, which runs seven captive iron-more mines at Kiriburu, Meghahatuburu, Gua and Chiria in Jharkhand, and Bolani, Barsua and Kalta in Odisha, is working on the modernisation and capacity expansion of mines in the Eastern part of the country, Verma said. SAIL will invest Rs 10,284 crore for development of mines under RMD as well as Bhillai to cater to its increased iron-ore requirements, he said.

Of the total investment, he said, SAIL will pump in Rs 940 crore to increase the capacity of Kiriburu mines from 4.25 million tonnes per annum to 5.50 million tonnes per annum. Another Rs 900 crore will be invested on adjoining Meghahatuburu mines in West Singhbhum district of Jharkhand to increase capacity from 3 million tonnes per annum (MTPA) to 6.50 million tonnes per annum. Rs 1091 crore will be invested for enhancing the capacity of the Bolani Mines from 4 MTPA to 10 MTPA.

He said jobs for most of the packages of these projects have already been awarded and are likely to be completed by 2013-14. Besides, the mining in Gua Mines in West Singhbhum district, which remained closed since 2011, is likely to resume soon, Verma said. Gua Mine will be developed up to 10 MTPA capacity along with installation of beneficiation and pelletisation facilities with an investment of Rs 3,000 crore, Verma said after visiting Kiriburu and Meghahatuburu mine for the first time.



21.03 | 0 komentar | Read More

Budget 2013-14: Hope govt ups FDI cap for insurance to 49%: Royal Sundaram

Ajay Bimbhet
Royal Sundaram Alliance Insurance Company Ltd

Royal Sundaram's wish list from the impending 2013 budget

FOR CUSTOMERS-

Measures to increase insurance penetration:

It is a fact that the Non-Life Insurance penetration (Premium as a percentage of GDP) as well as per capita Insurance Premium is very low.  Non-Life Insurance segment has a very high potential to grow.  However, in the absence of incentives, individual prefer saving instruments, wherein they will get back the amount saved with interest or at least to the extent where there is a Tax savings incentive available.

Service Tax

a) Considering the abysmally low penetration of insurance in our country, there needs to be a concerted effort to make insurance all the more affordable and attractive for the common man. The Government should consider waiving off service tax on insurance premium paid, or at least exempt health insurance products, RSBY, Crop Insurances, Senior Citizens Policy and Long term insurance products such as property and other exempt categories from the purview of service tax.

b) To promote insurance penetration Government can consider giving SOPs to certain sectors like SME's for providing Health Insurance Cover to all employees.

Income Tax

d) The Government must consider incentivising people with increasing the limit of section 80C from the current limit of Rs. 1 lac to Rs. 2 lac at least.

e) Further, given the high cost of medical care and to encourage more people to purchase health insurance, the limits under section 80 D of Income Tax Act, 1961 should be raised to Rs. 50,000/- from the current level of Rs. 15, 000/- . {Currently, under this section, health Insurance Premium paid in accordance with a scheme framed by any insurer approved by the Insurance Regulatory & Development Authority (IRDA) can be deducted up to Rs.15,000 from taxable income. If the policy is taken on the health of a senior citizen, the limit gets enhanced to Rs. 20,000/-}.

FOR INSURANCE COMPANIES

Increase FDI limit

With the Finance Minister's discussions held on the issues concerning the regulatory environment in the financial sector, and passing of Insurance Amendment Bill in Lok Sabha, we are hopeful to see the increase in the FDI limits from 26% to 49%. Infusion of additional capital can fuel the growth of insurance companies, help them in further geographical expansion to more tier II and tier III cities, cater to the requirements of rural markets and help Insurers to augment solvency positions.

Reinsurance payments not to be liable for tax deduction at source

As of today, the income tax department seeks deduction of tax at source for all premium cessions to reinsurers.  General Insurers, as part of their overall risk management, cede a part of the premium received by them to the foreign reinsurers apart from the national reinsurer (GIC Re). These foreign reinsurers generally do not have any permanent establishment in India and hence do not attract the provisions of Section 9 of the Income Tax Act (Income deemed to accrue or arise in India).

Withholding of tax would discourage the Re-insurers and could also lead to a situation of the reinsurance prices hardening and impacting availability of reinsurance capacity. The budget should pave the way for Central Board of Direct Taxes to issue appropriate circulars clarifying that payments to Reinsurers would not be liable to tax deduction at source.

Exemption from IT for profit on sale of investments
 
In order to encourage general insurance players to be active participants in the capital markets, there is a requirement for specific exemption from income tax on profit on sale of investments. Alternatively, general insurance companies to be placed on par with other industries on applicability of capital gains tax provision.

Minimum Alternate Tax (MAT):

The General Insurance companies have also been brought under the ambit MAT. However, Section 115JB of the Income Tax ACt starts from the premise where corporate have prepared their financial statements in accordance with Schedule VI of the Companies ACt, 1956.  Insurance Companies compile their financials in accordance with the Regulations prescribed by the Regulator IRDA.  Hence, for insurance companies since Schedule VI is not applicable, it is only appropriate that they be kept outside the purview of MAT, like life insurance companies.

The issue of admissibility of UPR (unexpired premium reserves) as per IRDA regulations rather than as per Income Tax Act only, for IT deductions.

The UPR (unexpired premium reserves) is at present restricted to the extent of limits specified in rule 6E of the income tax rules due to which insurance companies need to pay income tax beyond their profit disclosed in their audited accounts. Hence, the UPR created as per IRDA regulations should be exempted from the purview of rule 6E. In other words, limits of reserve for unexpired risks should be permitted in line with the IRDA regulations.



21.03 | 0 komentar | Read More

Mayur Shah, MD, Marathon Group expectations on the Budget

Sat, Feb 23, 2013 at 16:48

Mr. Mayur Shah, Managing Director, Marathon Group

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Mayur Shah, MD, Marathon Group expectations on the Budget

Mr. Mayur Shah, Managing Director, Marathon Group

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Mayur Shah, MD, Marathon Group expectations on the Budget

Mr. Mayur Shah, Managing Director, Marathon Group

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Mr. Mayur Shah Managing Director of Marathon group, one of Mumbai's leading real estate groups with projects across the length and breadth of Mumbai voices his opinion on the upcoming budget 2013.


From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


21.03 | 0 komentar | Read More

No rush to grow; hope Budget cheers on rates, mood: Toyota

Hiroshi Nakagawa, MD and CEO, Toyota India says the Asian auto giant will grow in India step-by-step and hopes the Budget will reduce interest rates, taxes and cheer consumer sentiment.

Toyota India has seen a number of firsts. The most recent is the design and development of the Etios and Liva for India by Indian designers and the rolling out a car-model for under Rs 5 lakh.

Below is an edited transcript of the show on CNBC-TV18

Q: The Etios and Liva are cars designed very much for India. How happy are you with the sales that they have recorded?

A: These models are one of our first that have been designed for India. These models are part of Toyota global range focusing especially on emerging markets. For the first time, we have begun to focus on the Indian consumer and the Indian market. Every aspect of India has been studied for the development of the Etios. Simultaneously we would expand this Etios model to other emerging markets. In terms of Indian market sales, I am very happy as the customers have acknowledged the challenges that we overcame.

Q: When you launched it a year and half ago I think your company said you were looking at 100,000 cars in 2012. Was that target achieved?

A: Yes. Two years ago we launched the Etios. Firstly, we launched a sedan model following a hatchback model and then followed it up with a diesel variant. In total, we achieved the original target of 100,000 cars.

Q: Could you have brought a small car into India a little earlier? You were a pioneer in the Indian market and introduced lots of segments. With the Qualis and the Innova you have really cracked open a new segment. Did you ignore the small car market for too long because that is a fast growing market?

A: Yes. The pioneers in the Indian auto industry are Maruti Suzuki , Tata Motors and Mahindra and Mahindra . We are challengers. We are still small compared to these giants. The Toyota philosophy is to grow step by step.

Q: You saw a gap in the Indian market and you introduced Qualis and Innova and then you decided to move into the small car market. Is that correct?

A: Yes. We have a kind of responsibility towards not only to customers, but also to employees, suppliers and dealers. Once we commit, we have to slowly rise and grow step by step.

Q: What do you feel about the industry today? The year 2012 was difficult. The data for the automobile industry in January revealed a highly negative picture. Toyota saw a 23 percent drop in January. When will things get better?

A: According to my understanding, India is a very promising market offering stable growth in the mid-and long-term. It is difficult to judge from last year or beginning of this year. Though the market is shaky, there is growth. However, interest rates are still high, there are difficulties related to exchange rates and a slowdown in customers' perception to buy cars.

Q: Do you expect anything from this Budget? What would you want and what do you expect?

A: I have observed that a lot of people visit our outlets but they do not, waiting for the right moment.

Q: How can the government help you turn that interest into a purchase?

A: The government can help by contributing to the increase in the consumer's buying power. So I look forward to some interest rate adjustment in the Union Budget.

Q: When will you say it is a good Budget?

A: The Budget will be good if it boost the customers' buying sentiment, supports with taxation and announces measures that will enhance the auto industry.

Q: Has the downturn in the last two years affected any of your investment plans? You have two factories at the moment. There were reports that you are planning a third factory. Are you planning a third factory, do you have any investment plans in the next year or two years and are these factories running to full capacity?

A: Yes, we built an additional plant after the first reached full capacity. Now the second plant has almost reached full capacity as per plan. Together both plants rollout 310,000 units.

Q: So that is about 100,000 in the first plant and about 200,000 in the second plant?

A: Yes. We have no plan to increase investment or initiate capacity expansion.

Q: Are you planning a third plant? When will the third plant be set up, if you say that your two plants are near full capacity?

A: There are rumours, but we have no plan for a third plant.

Q: Are you going to launch any improvements in the Etios and Liva? A few customers opine that though they are good models, they do not look as luxurious inside. So, are you planning a revamp of these two models?

A: Toyota's culture calls for continuous improvement or Kaizen. So, every moment and chance we get, we try to improve our models.



21.03 | 0 komentar | Read More

ZipDial connects clients with customers through missed call

Marketers are in the business of wooing customer loyalty, but very often what may seem like a winning marketing idea fails, because of the sheer complexity of the reward loyalty program.

Set up in 2010, ZipDial essentially addresses this problem. ZipDial was started by three graduates from Indian Institutes of Management (IIM), Indian Institutes of Technology (IIT) and Stanford University in 2010 Valerie Wagoner, Sanjay Swamy and Amiya Pathak. They have developed a powerful and innovative suite of marketing solutions based on the simplicity of dialling a toll free number.

ZipDial helps brands connect with customers through a missed call. The client has given a toll free number that consumers can dial into, but instead of having to wait endlessly to connect with a call center executive or punching multiple options the call rings once and disconnects and then the consumer receives an SMS with more information on the marketing campaign.

ZipDial's clients leverage these number for sending promotional messages or information. Services include mobile number verification for e-commerce ventures, mobile banking polls and customer feedback surveys.

"We came up with the idea for ZipDial in a late night brainstorm as entrepreneurs do. By the time we came up with about 300 different applications we said, okay, now it is time to put a business around this.At the time I contacted a couple of smaller businesses who I thought might be interested in using such a service and literally in the first conversation they were trying to hand me cash over the table for their first month subscription because they were so excited about the service," says Valerie Wagoner.

Between 2010 and now ZipDial has been steadily adding clients. Today its mobile engagement and analytics platforms is used by companies like Procter & Gamble (P&G), Hindustan Unilever (HUL), Cadbury, Disney, MakeMyTrip, Ola Cabs, Snapdeal, Puma, Amnesty International and a lot more. Businesses pay annual or biannual subscription plus usage fee based on success. Valarie claims that compared to Facebook, ZipDial drives between 2-5 times more engagements across all customers and in a time period that is at least twice as fast.

"Cafe Coffee Day is an example of a retail customer that we work with. They have done campaigns where they are promoting a coupon opportunity and users ZipDial to earn coupons and those are then redeemed when the person walks into the Cafe Coffee Day outlet. We have also looped in a feedback survey where consumers can rate their experience at Cafe Coffee Day by Zip Dialling for happy or unhappy," Wagoner says.

In April 2011 the venture raised Rs 3.6 crore in funding laid by Mumbai Angels. This maiden brand also saw participation from Blume Ventures and the partners at AngelPrime. In December 2012 Silicon Valley based incubator cum seed fund 500 startups invested another Rs 2.5 crore. The funds were used to scale up and get the wheels turning on international expansion plan. Times Internet is the latest investor in the venture.

"The ZipDial has created engagement for 100 percent of consumers. So compared to something like QR codes which is limited to smart phone users or even SMS which fewer than half of Indian mobile phone owners like to send or know how to send. Zip Dialling is a 100 percent accessible interaction. So we see fantastic results like makemytrip.com increasing their feedback responses from less than 0.5 percent to more than 10 percent," Wagoner says

With revenues of Rs 5.5 crore in just first year of operations Wagoner and team at ZipDial seemed to be dancing all the way to the bank. Wagoner is now looking to leverage ZipDial's relationship with its global brands to expand across countries in Asia and Africa. Not only is ZipDial creating value for large brands but it is also helping Small and Medium Enterprises (SME) use mobile engagement and analytics for a starting package of Rs 1,000 a month. Wagoner claims this important segment will continue to scale up in India.



21.03 | 0 komentar | Read More

FinMin to consider amicable solution to Vodafone case

Written By Unknown on Jumat, 22 Februari 2013 | 21.03

The government today said it is considering the request of British telecom major Vodafone for amicable settlement of the over Rs 11,217 crore tax dispute.

The Income Tax Department had issued a letter in January to Vodafone International Holdings BV (VIHBV) stating that the company is required to pay tax demand of Rs 112,17,94,68,800 along with interest.

Also Read: Vodafone India public issue not this year, says CEO

"Subsequently, VIHBV has made a request to settle the issue in amicable manner, which is under consideration," Minister of State for Finance S S Palanimanickam informed the Lok Sabha in a written reply.

Finance Minister P Chidambaram had yesterday said that the Cabinet is likely to take a view on the Vodafone tax case next week. Vodafone is facing the tax liability for purchase of Hong kong-based Hutchison Whampoa's stake in Indian telecom business Hutchison Essar in 2007.

The tax liability arose due to amending of the Income Tax Act, 1961 with retrospective effect during the tenure of the then Finance Minister Pranab Mukherjee to undo the Supreme Court judgement that was ruled in favour of Vodafone.

Recommendations of the Shome panel on retrospective amendments to tax laws are under consideration of the government. Among other things, the panel had suggested that either the government withdraw the retrospective tax amendment or waive interest and penalty in case it had to recover the taxes.

Replying to another question, Palanimanickam said investigations on allegations of evasion of tax against "a manufacturer of mobile handsets in India" is in progress. He, however did not provide details saying "since the investigation is in progress, it is premature to conclude on the fact of evasion and to quantify it".



21.03 | 0 komentar | Read More

Budget may cut withholding tax on debt instruments: Sources

In the upcoming Budget the Finance Minister P Chidambaram may rationalize the withholding tax on debt instruments, sources told CNBC TV18.

Also read: What to expect from the Union Budget 2013-14

In the 2012-Budget, the withholding tax was cut from 20 percent to 5 percent on foreign borrowing. FM is likely to replicate this in upcoming Budget across other debt instruments, which include non-resident Indian (NRI) investments and rupee denominated debt.

The government is also seriously considering rationalising securities transaction tax. Sources said that this will depend on short term capital gains which might also be capped by the government.

The government is also contemplating whether foreign institutional investors (FIIs) income should be treated as business income or capital gains, sources said. If it is treated as business income, the tax rate is much higher compared to the capital gains tax. The government is also contemplating on whether income of FII having permanent establishment in India should be treated as business income.

Also read: Recommendations on retro-tax laws under examination: Govt



21.03 | 0 komentar | Read More

RBI issues guidelines for new banking license

Moneycontrol Bureau

The much-awaited norms for new banking license are finally out. The Reserve Bank of India (RBI) on Friday issued the final guidelines for licensing of new private sector banks wherein entities both from private and public sector shall be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC).

"The NOFHC shall be wholly owned by the promoter / promoter group. The NOFHC shall hold the bank as well as all the other financial services entities of the group. Entities / groups should have a past record of sound credentials and integrity, be financially sound with a successful track record of 10 years. For this purpose, RBI may seek feedback from other regulators and enforcement and investigative agencies," RBI said in a release.

A business group, which is keen on applying for a license should have a minimum paid up equity capital of Rs 500 crore. At the start of banking operations, NOFHC should hold a minimum of 40 per cent of the equity capital of the bank with a lock-in period of 15 years. Later, it has to be brought down to 15 percent within 12 year from that onwards.

The NOFHC will be registered as a non-banking finance company with the RBI while the bank will be governed by the prudential regulations by RBI. 

"The NOFHC and the bank shall not have any exposure to the Promoter Group. The bank shall not invest in the equity / debt capital instruments of any financial entities held by the NOFHC," RBI said.

However, the banking regulator put a stricter condition of having 25% of its branches in unbanked rural areas with population upto 9,999. Many believe, for a new banking entity, it will be stumbling block as the brick and mortar model especially in rural areas take time to turn profitable.

After a span of around 10 years RBI is set to issue fresh banking license. In 2003-04, it had last issued license to Yes Bank and Kotak Mahindra Bank . Prior to that, the central bank had introduced the first round of licenses to 10 private sector banks.

In line with existing domestic norms, the new bank should also achieve priority sector lending target of 40%. Interestingly, most of the existing banks are failing to meet the target.

However, the regulator seems to be committed to reach banking services in remote places of India. A back-of-the-envelop calculation suggests, 60% of the population does not have basic banking facilities.

"The business plan should be realistic and viable and should address how the bank proposes to achieve financial inclusion," RBI said.

More updates follow...



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Cabinet to take a call on UG coal gasification policy soon

With the country facing acute fuel shortage, the Cabinet Committee on Economic Affairs (CCEA) may soon take a call on forming a new policy on underground coal gasification.

"CCEA may soon take a call on formation of a policy for converting the coal at the depth of below 300 metres to gas,"said a source. Underground coal gasification is a method of converting coal still in the ground to a combustible gas that can be used for various uses, including power generation.

Also Read: PwC to help CIL to develop pact for supply of imported coal

The Coal Ministry earlier this month moved a Cabinet note on a policy for underground coal gasification and has received comments from the various ministries on the same. After the policy is finalised, the blocks for coal gasification would be identified and expression of interest for allocating the blocks to the companies would be invited, the source said on the conditions of anonymity.

Only those companies having a net worth of at least Rs 200 crore would qualify to apply for those blocks, the source added. Coal Minister Sriprakash Jaiswal had also earlier sought cooperation of countries like South Africa for underground coal gasification technologies.

Earlier, the minister had hinted that there was a proposal to bring out appropriate guidelines for implementing underground coal gasification projects in the country. The gap in the demand and supply of coal which widened to 161.5 million tonne (MT) in the last fiscal, is likely to touch 200 million tonne by 2016-17.



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Govt expects Rs 43,000 cr from spectrum sale at base price

The government will get Rs 43,011 crore if all the spectrum is sold at at the base price in the auction, Minister of State for Communications and IT Milind Deora said today.

The government has announced starting auction in March for 2G spectrum that remained unsold in November auction. Also, spectrum held by existing operators Airtel, Vodafone and Loop Mobile through licences that are due for renewal in 2014 will also be auctioned.

Also Read: SSTL to bid for spectrum, shut down operations in 10 circle

"The estimated realisation from this auction assuming that all spectrum put to auction is sold at the reserve price is of Rs 43,011 crore," Deora said in a written reply to the Rajya Sabha.

In the second round of auction, the government will put unsold GSM spectrum in 1800 Mhz band and airwaves held by telecom licences in 900 Mhz band that is coming for renewal starting 2014 onwards.

The government slashed base price of CDMA spectrum by 50 per cent and unsold GSM spectrum by 30 per cent. The price of spectrum in 900 Mhz has been fixed at two times the price of airwaves in 1800 Mhz.

According to the auction guidelines, auction for 1800 Mhz and 900 Mhz band, currently being used for GSM services, will be conducted simultaneously and auction of 800 Mhz band, being used for CDMA services, in 21 out of 22 service area will be conducted separately. The bids for spectrum will start from March 11 for which companies can apply by February 25.



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Expect passage of Food Bill; all states on board: Thomas

Written By Unknown on Rabu, 20 Februari 2013 | 21.03

Union food minister KV Thomas is optimistic about the Food Subsidy Bill being passed in the upcoming Budget Session. Speaking exclusively to CNBC-TV18, the food minister asserted that most state-governments were in agreement regarding the proposals in the Bill.

"We intend to table this Bill in the Parliament by the end of the first half of the Budget Session to ensure its enactment in the Budget Session itself."

"Fortunately even Chief Ministers from BJP-ruled states like Bihar have supported this Bill. The Bill's key objective is to reach out to 75 percent of the population out of which 46 percent, equivalent to the population below the poverty line, would be catered to on a priority basis."

"The Bill proposes to reach out to 50 percent of the urban population out of which a minimum of 28 percent will be catered to on a priority basis. The Standing Committee has shifted its point of view dismissed the various clauses in the Bill on inclusion, exclusion and priority and suggested that 75 percent of the rural population and 50 percent of the urban population, which altogether comes to 67 percent, be covered by the Bill."



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Cabinet to take call on Vodafone tax dispute: Chidambaram

Finance Minister P Chidambaram today said the Union Cabinet will take a final call on settlement of the Rs 11,200-crore Vodafone tax case after seeking opinion of the Attorney General.

"As far as Vodafone is concerned, they had written to us proposing conciliation. We have written back saying that yes your request will be considered by the competent authority. So the matter will go to the Cabinet," Chidambaram said.

Also Read: Vodafone challenges govt's move to auction its spectrum

Vodafone, which is facing a tax liability of Rs 11,200 crore for purchase of Hutchison Whampoa's stake in its Indian telecom business in 2007, had written to the Finance Ministry seeking settlement of the tax issue.

This follows Finance Ministry's reminder notice to the UK-telcom giant Vodafone in January for payment of tax. Replying to queries on tax notice to Shell in the transfer pricing case, Chidambaram said such cases involving transfer of domestic assets in overseas deals have been referred to Attorney General G E Vahanvati for his opinion.

"So far as Shell is concerned and number of cases similar to that, there are order that have been passed. There is order of the tribunal in one.

"So what is the scope and interpretation of Chapter 10 to a case of this nature where shares have been allotted by a subsidiary to the parent company? That question has been referred to the Attorney General few days ago and we are awaiting the advise of the AG. We are approaching all these cases in a purely professional manner," Chidambaram said.

The income tax department has charged Shell India with under-pricing a share transfer within the group by Rs 15,220 crore, and consequently evading taxes. The order relates to the issue of 8.7 crore shares by Shell India to an overseas company Shell Gas BV in March 2009.

The government is likely to announce some steps to deal with the complex issue concerning indirect transfer of Indian assets through overseas deals in the Budget for 2013-14 which will be unveiled in the Lok Sabha on February 28.

The Vodafone tax liability arose due to amending of the Income Tax Act, 1961, with retrospective effect during the tenure of the then Finance Minister Pranab Mukherjee to undo the Supreme Court judgement that had ruled in favour of the company.

The government is working towards a solution based on recommendations of the Parthasarathi Shome panel which suggested that either the government withdraw the retrospective tax amendment or waive interest and penalty in case it had to recover the taxes.

MNCs like Shell and Nokia have expressed concern over the letters being sent by the tax authorities with regard to duty evasion.

Last month, I-T department officials had conducted a survey operation in the premises of the Finnish cellphone major Nokia in Chennai on charges of alleged tax evasion. Taxmen are reportedly seeking up to Rs 3,000 crore from Nokia for alleged duty evasion.



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AirAsia's India foray good news; see more competition: KPMG

Asia's leading low-fare airline AirAsia Bhd is looking to enter the Indian aviation market along with the Tata group and Telestra Tradeplace, the firm said on Wenesday. This comes in the backdrop of the Indian government easing rules to allow overseas carriers to invest upto 49 percent in local carriers late last year.

Amber Dubey, head (aviation), KPMG India told CNBC-TV18 that he is extremely positive on AirAsia's plan to invest in India. "After the policy (FDI) change in September, we had predicted that there will be at least two-three equity infusions in existing airlines and there could also be one or two start ups," Dubey says.

Dubey feels that the deal will expand connectivity into regional routes on the tier 3-tier 4 sectors. "Passengers will see yet another fare war and ultimately over the next one or two years we may also see some consolidation in the Indian aviation sector," he told the channel.

Below is the verbatim transcript of Amber Dubey's interview on CNBC-TV18

Q: What is your reaction to the news involving the Tata Group as well as Air Asia?

A: Extremely positive. Not unexpected. When the policy change happened around September, we had predicted that there will be at least two-three equity infusions in existing airlines and there could also be one or two start ups. One or two start ups, because it is easier to start an airline on a clean sheet of paper rather than investing into an existing airline where there could be various challenges and debt issues.

When you go beyond 24 percent in an existing airline, there has to be an open offer and instead of pumping money into the airline, the money will have to be paid to the existing shareholders. A start up always makes more strategic sense and this is just fantastic and now there will be some exciting competition. We will expand the connectivity into our regional routes on the tier 3-tier 4 sectors.

Passengers will see yet another fare war and ultimately over the next one or two years we might also see some consolidation in the Indian aviation sector given that our flyer base is very small and the regulatory challenges, our cost structures are very high. Unless some of those regulatory changes are made, we might see some consolidation. Some airlines may not survive in this battle for the fittest. Just like the US and Europe, we will see consolidation over the next one-two years.

Q: Looking at the way the whole Jet-Etihad deal is happening, there is so much time involved in this deal. What needs to be changed given the low cost carriers (LCC) and how this joint venture (JV) is going to work because it still seems that Air Asia is going to hold 49 percent? What needs to be clarified if they will go ahead and seek the foreign policy initiative (FPI) approval?

A: A lot of backroom homework must have already been done by both the airlines. Both Air Asia and Tata are responsible and famous companies. They know the lay of the land and have been around and are operating. They are doing about 63 odd flights every week to India. Now that the policy is there, there is no way this can be prevented because the government would encourage only equity investment in the existing airline. But nowhere in the fine print it is mentioned that this policy change was only for existing airlines.

Any new company can be set up. It will take some time and that's why we have projected that it will take at least 6-12 months for some of these deals to fructify and flights to start. Whenever there is a regime check, such delays and clarifications will be required. The biggest issue here would be the 5/20 rule. Very often we have been raising the issue that when we open up the FDI, this 5/20 rule should be scrapped as in five years and 20 aircrafts because for this 5/20, the original objective was to keep flying by night operators. Here we have a global brand and global airlines, very well renowned airlines with a perfect track record.

If they come to India, surely we cannot make them wait for five years and 20 aircrafts fleet to start flying. Also the aircrafts, pilots, engineers, everybody is going to be certified by the Directorate General of Civil Aviation (DGCA) so what's the reason to keep them from flying. These are some of the clarifications which over a period of time, the ministry, DGCA and some of the other agencies will clarify and this deal should go through.

Q: While several low-cost carrier (LCC) names have been doing the rounds, whether it is GoAir, or Indigo saying that they are looking for foreign direct investment (FDI) approval, you are saying this international LCC coming into India and seeking to connect India, do you think it will open the market up? How will things change for other LCCs in India?

A: Definitely. This will now create the second wave of LCC resolution. The first round started about 4-5 years back when the LCC culture first came in India pioneered by Captain Gopinath, but this will be second round and will open up new centers in tier-3, tier-4 cities. It will create point-to-point rather than all flights coming to those metro hubs.

AirAsia will bring in all the wealth of knowledge, information and experience that is gathered in other equally comparative markets in India. That coupled with Tatas who have been around for centuries who have the presence of the entire country, I think it will be a fantastic deal. In this competition given the low flyer base in India, regulatory challenges and the fact that we have a very high cost structure will lead to some consolidation, because India cannot afford more than four strong national airlines given the constraints at the moment.



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Shubhra Mehandirata firmly takes her firm ahead

By Julie Sam

The show may have ended, followed by a thunderous applause. However, the work isn't over yet for Shubhra Bhardwaj Mehandirata and her ilk who operate several functions behind the scenes like a puppeteer, inconspicuously. Founder of Ferriswheel Entertainment Pvt. Ltd., a creative agency that handles events in five verticals-sports, productions, festivals, large-scale events and cultural exchange programs-Mehandirata has been at it for over a decade.

Quick start
Ferriswheel was founded in September 2009 after Mehandirata decided to branch out from Rangpuhar, her maiden venture which was a creative agency co-founded by her husband Sanjay Mehandirata.

Her career at Rangpuhar started by taking Indian folk dancers out of the country to international festivals to showcase local talent. She played the role of a co-founder for a decade and a half. "I never really worked as an employee to begin with; I began my career as an entrepreneur with Rangpuhar. As business grew, I was very clear about the kind of agency I wanted to build, and that is exactly what we have managed to accomplish," she affirms.

Once Mehandirata moved out of Rangpuhar to create Ferriswheel, there was no looking back, with the latter turning into an all-consuming entity. The 38-year-old is quick to point out that though it may seem like an event management company from the periphery, it essentially holds five verticals under one umbrella, which then function as separate models. Mehandirata says this distinction between each vertical helps keep the agency healthy financially.

Making her mark
Given her experience at Rangpuhar, it was easier for Mehandirata to create a niche in this space and it helped Ferriswheel bag larger tenders for the company. 'Ticket to Bollywood-Tour of China Shanghai Expo 2010รข€² in July was one of the biggest breaks headed by her production team which helped her gain ground.

Commissioned by Indian Council for Cultural Relations (ICCR) and India Trade Promotion Organisation (ITPO), in New Delhi, Ticket To Bollywood is a 90-minute production which encompasses the sights and music of Indian folk dance rooted in tradition through Bollywood. This production opened to an audience of 8,000 people at the expo. It has since then toured the US, Canada, the Caribbean in 2011 and Japan in 2012.

The year 2010 saw Mehandirata as a consultant to the Organizing Committee for Mass Cast for the Commonwealth Games 2010 held in New Delhi. Ferriswheel was responsible for backstage management, costumes, make-up and security, among others. Ferriswheel also undertakes WorldFest -in association with IIT-Bombay's annual festival Mood Indigo-a youth fest for cultural exchange by bringing together young dancers from different countries to perform on a single platform. The second edition, which took place in December 2012, witnessed students from Puerto Rico, Sri Lanka, Serbia and Italy, among others.

The closing ceremony at the 34th National Games, Ranchi 2011 needed a ten-minute show to showcase and represent the state of Kerala (the next host for the National Games in December 2013). Mehandirata took over the responsibility of handling the creative aspect, production logistics, creation of audio visuals among others.

Anil Kumar, Coordinator for the 35th National Games Kerala 2013, says, "We received last-minute intimation about the event slot where we had to showcase the nuances and the culture of the state. Shyamaprasad Rajagopal, the acclaimed Kerala filmmaker recommended Ferriswheel and we got them on board. Ferriswheel conceptualized, executed and delivered an impressive show in a month." Kumar points out that it requires more than just talent to amalgamate a ten-minute slot in a two-and-a-half hour ceremony and bind it together with the entire slot (which was handled by another event management company). "They got everything right-from planning, coordinating, music composition, getting dancers and setting logistics in place," he adds.

Straight cut
Mehandirata has given freedom to her core team to make important decisions for the company, which also includes bidding for tenders for high-profile (large-scale) events as she feels this ensures a smoother workflow between each vertical. She believes there is a need to be democratic in the way work is implemented.

"I have outlined clear roles for the heads of departments to handle the verticals. It has been a learning growth for each of the heads. It keeps the team motivated," says Mehandirata.

Placing trust in the core team is essential for the company to grow, she says. "If bidding has been approved and the tender procured, I let the head of the departments take control of the events. I pitch in during the final proposal; say, to see if there is a way we could reduce costs on operations, or if there is a method to invest efforts, without overshooting on the budget."

If there's a department that Mehandirata has deliberately done away with, it is the Human Resources department. The teams take account of the HR process-be it for leave or recruitment. She explains: "Where payrolls are concerned, the team heads work with the team members and are aware of the minute details like compensatory offs, for instance. I make sure I interview aspiring employees, since hiring is a very crucial part of building your team. It helps to have a flexible system in place to help employees work up to their capabilities. We'd rather become a firm like Infosys-where people drive the company."

The future
Ferriswheel is self-funded since inception and has been sailing smoothly. It has managed to make a mark in three years, with each vertical expanding, the company breaking even and claiming to be "healthy in profits." There is even a possibility of a private equity player picking up a stake, but Mehandirata is not ready to talk about it right now.

Talking about competitors, she says her niche has helped them through, and though there's been healthy competition, that hasn't been a problem. Is there a challenge being a woman entrepreneur? Mehandirata refuses to believe challenges are gender-specific. She explains, "As a woman, I face many challenges that a man would face. I have been trained to think in a non-gender way. When I am out to do something, I don't think of myself as a man or a woman; rather, I see whether I can do the job or not. I prefer to see the good parts rather than dwelling on the smaller issues." The year 2013 will see Ferriswheel getting into TV production and a design line.

Till then, working class heroes may stand out to be more than a metaphor-at least when the lights go off. The show's not over for them yet.

© Entrepreneur India January 2013



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