Samsung faces about Rs 70 cr alleged duty evasion charge

DRI had last month issued the notice to Samsung India for allegedly evading duty worth about Rs 70 crore while importing the tablets from South Korea between April 2012 and February 2013

Electronics goods giant Samsung has been slapped with a notice by Directorate of Revenue Intelligence (DRI) for allegedly evading import duty to the tune of Rs 70 crore.

Samsung India had allegedly imported tablets valuing about Rs 460 crore by declaring them as mobile phones and evaded import duty on the consignment, official sources said.

Also Read: Google, Samsung ask China to limit Microsoft-Nokia deal

A duty of about 12 percent was applicable for import of tablets as against one percent on mobile phones, they said.

DRI had last month issued the notice to Samsung India for allegedly evading duty worth about Rs 70 crore while importing the tablets from South Korea between April 2012 and February 2013, the sources said.

When contacted, a company spokesperson said the notice was being reviewed by it. "We are currently reviewing the notice in question. We would like to assure our customers that we have always adhered to the laws and regulations of all countries in which we operate.

"Samsung has always acted in the matter after consulting the respected legal experts in the concerned area of practice," the company's spokesperson said in a statement.

In the show cause notice issued to Samsung, the DRI has asked why the consignment should not be seized by it for alleged import duty evasion, they added.

21.03 | 0 komentar | Read More

Infra investment to push growth to 8% in 3 years: Montek

"We are working to revive the pace of investment in infrastructure, which we believe can provide the basis for a return of growth back to eight percent over a three year period," says Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Attributing declining growth to global and domestic factors, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said efforts to revive infrastructure investment would help in reverting to 8 percent growth in next three years.

"We are working to revive the pace of investment in infrastructure, which we believe can provide the basis for a return of growth back to eight percent over a three year period. Our economic fundamentals are strong and we believe that a return to high growth is possible," Ahluwalia said while addressing the Strategic Economic Dialogue (SED) forum. In the October-December quarter, India's economy grew below expectations at 4.7 percent on falling output in the manufacturing sector.

Growth in the first nine months (April-December) was 4.6 percent.

The economy must expand by 5.7 percent in January- March quarter to achieve the estimated GDP expansion of 4.9 percent in 2013-14.

"GDP growth in India has slowed down to around 5 percent over the past two years, partly because of the global downturn but also because of the certain domestic constraints, which we have been addressing," he said.

Ahluwalia congratulated China for achieving 7.7 percent growth, which was above than the targeted 7.5 percent. "Whatever be the outcome of the general election (in India), I am confident that the objective of strengthening bilateral economic relations with China will not be altered," he said.

Also read:  Clean energy investment of $36 tn to attract private sector

21.03 | 0 komentar | Read More

Tech Mahindra to manage IT infra for Volvo Car group

The scope of the partnership, which was signed in February, covers 2,800 servers across Volvo Cars' regional offices, global factories, global data centre, R&D and manufacturing IT, Tech Mahindra said.

IT firm Tech Mahindra  on Tuesday said it will provide end-to-end IT infrastructure support and services to Volvo Car Group in various countries, including Sweden, China and Belgium.

Also Read: Tech Mah in talks for offering IT services in Saudi Arabia

The scope of the partnership, which was signed in February, covers 2,800 servers across Volvo Cars' regional offices, global factories, global data centre, R&D and manufacturing IT, it said in a statement.

The service also covers 4,000 factory devices in Sweden, Belgium, China and 30,000 end users and their work devices, including parts of the Volvo Cars dealer network, it added.

Financial details of the deal were not disclosed.

The partnership also encompasses application maintenance and development, including the introduction and management of a hybrid cloud strategy.

"Volvo Cars values and goals strongly emphasise reliable products and services in all operations. The vision outlines IT as a competitive advantage for all Volvo Cars business units. Tech Mahindra is excited to be supporting and sharing that vision for quality in each business area," Tech Mahindra Head Europe (Enterprise) Vikram Nair said.

Volvo Cars will be supported by Tech Mahindra's Infrastructure Management Services (IMS) practice team.

The IMS team covers data centres, end user computing, networks, security and IT operations management to over 190 customers across industries including telecom, banking, manufacturing, insurance, retail and healthcare.

Tech Mahindra stock price

On February 25, 2014, Tech Mahindra closed at Rs 1836.70, up Rs 6.65, or 0.36 percent. The 52-week high of the share was Rs 1906.00 and the 52-week low was Rs 895.25.

The company's trailing 12-month (TTM) EPS was at Rs 98.45 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 18.66. The latest book value of the company is Rs 183.70 per share. At current value, the price-to-book value of the company is 10.00.

21.03 | 0 komentar | Read More

3 out of 4 insurance policies to be sold online by 2020

As many as three out of every four insurance policies will be sold online by 2020, says a Google study.

"It is estimated that three in every four insurance policies sold by 2020 would be influenced by digital channels during either the pre-purchase stage, purchase or renewal stages," according to the report prepared by Google in collaboration with Boston Consulting Group (BCG).

Also Read: Reliance Life eyes Rs 1,800 cr new business in FY14

The report 'Digital@Insurance-20X By 2020' asserts that not only will insurance sales from online channels grow 20 fold from today by 2020, but overall Internet influenced sales would be Rs 3,00,000-4,00,000 crore.

"The exploding popularity of smart phones and Internet has become a core part of life for many consumers across the globe and in India," the report said.

The influence of Digital is already 'big' and is getting 'bigger', exponentially in terms of user growth and time taken. The connected online population of over two billion users forms a brand new market that cuts across borders, it added.

"As insurers seek new avenues to grow profitably, they have a unique opportunity to embrace and benefit from the digital wave, which also addresses many key issues that plague the offline world today," it said.

"The digital adoption could result in potential savings of 15-20 percent of total costs in the case of life insurance and 20-30 percent in the case of non life, thereby showing the path towards profitability for the industry", said Alpesh Shah, a BCG Senior Partner also the author of the report.

"While online purchases represent a small component of insurance activity in India today, the overall influence of Internet on insurance product purchase in India is already 6x and growing rapidly," said, Vikas Agnihotri, Industry Director, BFSI, Travel Google India.

21.03 | 0 komentar | Read More

7 telcos to share infrastructure in Africa, Middle East

The seven operators include Bharti Airtel, Etisalat Group, MTN Group, Ooredoo Group, Orange, Vodafone Group and Zain Group.

Seven major telecom operators across Africa and Middle East, including  Bharti Airtel and Vodafone Group, will share their network infrastructure, with the objective of providing Internet to rural communities and driving down the cost of mobile services.

"Senior leaders from seven major mobile operator groups, serving 506 million customers across Africa and the Middle East, plan to cooperate on network infrastructure sharing initiatives," global telecom body GSM Association (GSMA) said in a statement.

Also Read: Telecom user base rises to 92.20 cr in Jan: Trai

The seven operators include Bharti Airtel, Etisalat Group, MTN Group, Ooredoo Group, Orange, Vodafone Group and Zain Group.

The participating operators have made this commitment to providing Internet and mobile broadband access to unserved rural communities and driving down the cost of mobile services for all sections of the population.

"Unique mobile subscriber penetration is only 40 percent in Africa and the Middle East, lower than the global average of 47 percent, so we need to work together to expand the reach of mobile," GSMA Director General Anne Bouverot said.

The operators collectively manage 76 mobile network operations across 47 countries in Africa and the Middle East, where many of the unconnected population live in rural areas, it said.

"This cooperation demonstrates that the industry is committed to innovating in order to serve the billions living in the rural areas," Bharti Enterprises MD and Chair of the Public Policy Committee of the GSMA board Manoj Kohli said.

Bharti Airtel stock price

On March 18, 2014, Bharti Airtel closed at Rs 295.30, up Rs 0.20, or 0.07 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 266.95.

The company's trailing 12-month (TTM) EPS was at Rs 14.07 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 20.99. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company is 2.18.

21.03 | 0 komentar | Read More

Industry appeals for slashing rates grow stronger

For the first time in nine months, inflation based on Wholesale Price Index, slipped below the psychological mark of 5 percent in February on easing prices of onion and potato.

India Inc's appeal for easing of Reserve Bank's key interest rates grew stronger as inflation declined to 9-month low of 4.68 percent in February.

"The moderation in inflation should induce the RBI to make a shift towards a more accommodative monetary policy stance to revive investment and propel demand especially as investment demand is declining and consumer durables are in the red," CII Director General Chandrajit Banerjee said.

For the first time in nine months, inflation based on Wholesale Price Index , slipped below the psychological mark of 5 percent in February on easing prices of onion and potato.

Industry officials believe that this has created headroom for RBI to cut interest rates in the monetary policy review on April 1 so as to boost the sagging economic growth.

RBI has maintained a hawkish interest rate regime to tame inflation. Industry, on the other hand, has been demanding a cut in interest rates to boost economic growth, which has slowed to a decade-low level.

"The decline in inflation will hopefully create some space for monetary policy easing by the RBI. This is imperative as the sentiment of caution continues to weigh heavy on the minds of investors," Ficci President Sidharth Birla said.

Food inflation dropped to 8.12 percent in February, compared to 8.8 percent in January, as the rate of price rise slowed in almost all items, except fruits and milk.

"A cut in repo rate at this juncture would pave the way for economic recovery to become more visible and sustainable," President of PHD Chamber of Commerce Sharad Jaipuria said.

Inflation, which is on a decline since December, was 5.05 percent in January. Prior to February, the lowest WPI was recorded in May 2013 at 4.58 percent. In June, it had inched up again to 5.16 percent.

Assocham President Rana Kapoor said: "Drop in inflation sets the stage for the Reserve Bank to go in for cut in the policy interest rates in wake of the sharp deceleration in industrial demand."

21.03 | 0 komentar | Read More

Kalyan Grp in talks with investors to sell $200-250mn stake

The company has annual revenues of 94 billion Indian rupees and hopes to touch 150 billion rupees next year. It also plans to expand into Malaysia and Singapore next year in anticipation of a potential listing in 2-3 years, Kalyanaraman said.

Indian silk and jewellery retailer Kalyan Group is holding separate talks with Blackstone, TPG Capital Management and Temasek Holdings to sell a minority stake for USD 200- USD 250 million, two sources with direct knowledge of the matter told Reuters.

The sources said the talks with the private equity firms were ongoing, and no decisions had been made as to the exact amount of the stake sale.

"At this point in time, we cannot give a time frame for the conclusion of the deal," said one of the sources.

When contacted, Ramesh Kalyanaraman, executive director of Kalyan Group, told Reuters the company is in talks with various investors, but declined to name them or provide details.

Temasek, TPG, and Blackstone Group LP each declined to comment.

Kalyan Group, based in southern India, runs silk and jewellery retail chains across the country.

The company has annual revenues of 94 billion Indian rupees and hopes to touch 150 billion rupees next year. It also plans to expand into Malaysia and Singapore next year in anticipation of a potential listing in 2-3 years, Kalyanaraman said.

21.03 | 0 komentar | Read More

Sahara investors untraceable, search empties Sebi coffers

Watchdog Sebi's quest to locate genuine Sahara investors may be turning largely futile, but the entire process has become a very costly affair for the regulator and its expenses may rise further next year from about Rs 60 crore estimated for the current fiscal.

Also Read: Sahara chief challenges detention by SC

In the high-profile case involving refund of over Rs 24,000 crore and additional interest of 15 percent per annum, the Supreme Court had asked Saharas in August 2012 to submit all documents and refund money to Sebi for further repayments to genuine investors after verifying the documents.

Sebi feels that the storage cost payable for the documents submitted by Saharas will go up further in the next fiscal 2014-15 due to receipt of additional documents, such as property title deeds submitted by Saharas, as also due to storage of scanned images, sources said.

The Supreme Court had ordered that all expenses incurred by Sebi in the refund process would be incurred by Saharas.

The regulator has now sought a permission to use a portion of Rs 5,120 crore -- deposited by Saharas for refund to investors -- for settling expenses incurred or to be incurred in the matters for carrying out directions of the apex court.

After months of delay, Saharas finally submitted 5.28 crore documents to Sebi without providing "any authentic database and the documents were dumped at Sebi in a totally haphazard fashion," according to the latest status update of the Special Enforcement Cell set up by the regulator for Sahara case.

Sebi has completed the work of scanning all these documents and has created computer files running into a total size of 70 terabytes (about 20 crore images). A hard disc with such a storage capacity can contain more than three crore songs.

While the scanning job is over, the work relating to data entry may be still continuing, sources said.

While Saharas have denied the charges that the documents submitted to Sebi were "hopelessly mixed up", Sebi felt it necessary that all the documents be scanned and a proper database be created to move ahead with the investor verification and refund process.

It was felt that the database would also make the work of refund processing much more manageable, besides covering the risk of damage to the documents.

In this context, Sebi had awarded a contract to Stock Holding Corporation of India Ltd (SHCIL) for storage, digitisation, scanning etc, for an annual contract value of Rs 25.96 crore and to UTI Infrastructure & Technology Services Ltd (UTI-ITSL) for refund related activities for an annual contract value of Rs 29.87 crore.

In addition to these contracts, Sebi has incurred significant expenses under other heads also with regard to the Sahara case, including towards legal costs and the in-house refund handling expenses, sources said.

21.03 | 0 komentar | Read More

IFC raises Rs 2,000 cr more in international Re bond sale

International Finance Corp, an arm of the World Bank, today raised Rs 2,000 crore through sale of 5-year global rupee bonds, with a yield of 7.8 percent, making it the largest offshore rupee bond issuance till date.

This takes IFC's total fund raising to Rs 4,971.5 crore since November, when it had issued the first such bonds.

Also Read: Are emerging market bonds a better deal than stocks?

The aim of the issuance, which is the fourth reopening of the November issue - when it sold Rs 1,000 crore worth rupee bonds, is to develop capital markets and attract more overseas investors into the country, IFC said in a statement.

"IFC's five-year global rupee bond comes to market at a time when foreign investors are seeing renewed opportunity in the country's capital markets," its vice-president and treasurer Jingdong Hua said.

"The bond supports this momentum while providing a unique bridge that links international investment with India's private sector financing needs," Hua added.

The order book of the bond issue has reached close to Rs 2,500 crore.

More than two-thirds of IFC's subscribers consist of US and European asset managers, insurance companies, private banks and real money investors.

This issuance brings nearly USD 815 million of notes issued under IFC's USD 1-billion global rupee bond programme, launched last November, the statement said.

IFC global rupee bonds are denominated in rupees but settled in US dollars, with all principal and coupon payments tied to the US dollar/rupee exchange rate.

IFC converts bond proceeds from dollars into rupees on the domestic spot exchange market, and uses the rupees to invest in the country.

Under the programme, IFC also has a three-year outstanding bond of Rs 3,000 crore.

India accounted for USD 4.5 billion of IFC's committed investment portfolio as of June 30, 2013 - more than any other country.

In FY'13, IFC invested USD 1.38 billion into the country to achieve several strategic priorities such as promoting inclusive growth in the country's low-income states, addressing climate change, and supporting global economic integration.

21.03 | 0 komentar | Read More

Hospitality sector ruled MA deals in Feb: Grant Thornton

Sector wise, among mergers and acquisitions, Raja Lahiri believes hospitality tops the chart as there were two big deals including Aman Resorts buying Silverlink Holdings and Thomas Cook buying Sterling Holidays in February.

We are seeing good amount of interest in the e-commerce sector. eBay bought Snapdeal along with other private equity sectors

Raja Lahiri

Partner

Grant Thornton

Despite USD 4.2 billion deals in just January and February, the sentiment and momentum remains sluggish at this point in time, says Raja Lahiri, Grant Thornton in an interview to CNBC-TV18's Elan Dutta.

Sector wise, among mergers and acquisitions, Lahiri believes hospitality tops the chart as there were two big deals including Aman Resorts buying Silverlink Holdings and  Thomas Cook buying Sterling Holidays .

Also Read: Hotel Leela to renegotiate with lenders for bridge loan

Below are excerpts from the interview:

Q: Your report suggests that even though the overall deal value is actually lower,  M&A deal volume has managed to remain steady?

A: The deal volumes are fine but again if you see the underlying sentiment and the momentum, it is still moderated. However, if you look at the month of February we still had USD 2.6 billion of deals. If you look in the first two months, we had USD 4.2 billion which is not a bad number but again important point is that the sentiment and the momentum still remains sluggish at this point of time.

Q: What caught your attention for the month of February, sector wise?

A: Sector wise from an M&A perspective we saw hospitality as a key sector. We saw Aman Resorts buying out Silverlink Holdings which is basically a clutch of resorts that DLF had bought which they have kind of sold off to Aman Resorts; USD 300 plus million transaction. The second was Thomas Cook buying out Sterling Holidays.

From a private equity perspective the good news is we see some interest in the infrastructure side. We saw Canadian Pension Investment Board putting in a good sum of money in Larsen and Toubro infrastructure and  IDFC and Temasek parking their money in GMR Infrastructure . It was a transaction where they swap their stake in GMR Energy into GMR Infra and so, these are the top deals.

Thirdly, we are seeing good amount of interest in the e-commerce sector. eBay bought Snapdeal along with other private equity sectors. Fourthly, from a telecom perspective we saw  Bharti Airtel buying Loop Mobile which again is an emerging trend of consolidation in the Indian telecom sector.

21.03 | 0 komentar | Read More