Friday, September 11, 1998
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B U S I N E S S | Friday, September 11, 1998 |
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NIIT’s plan to raise
FII stake foiled Trade
status for Sri Lanka |
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Ranbaxy awards
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Rs 50 crore bio-tech fund
set up
Captain
Cook sale stayed HSIDC
‘creates’ proof in plot case
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NIIT’s plan to raise FII stake foiled NEW DELHI, Sept 10 (PTI) — Shareholders of computer training major NIIT Ltd. today shot down a proposal by the company to hike the foreign institutional investors’ (FIIs) holding to 30 per cent from the current 24 per cent.“All small shareholders of the company voted against the resolution at the extra-ordinary general meeting (EGM),” a company official told PTI. The EGM approved the resolution to continue the services of R.S. Pawar as Managing Director of the Rs 430 crore company for another term.The agitated shareholders, mainly the employees of NIIT, told the Board of Directors of the company, that there was no need to allow FIIs to increase their stake as the share prices of the company are currently ruling at low levels. NIIT prices are ruling at Rs 1430-1450 levels as against the 52-week high of Rs 1764.The EGM decided to consider the proposal again at a later stage when the stock market picks up. “I’ll approach you again with this proposal once the prices become attractive,” Chairman Shiv Nadar told the shereholders and withdrew the resolution. “The shareholders decided to wait for the opportune time before giving the nod for FIIs to raise their stake,” the official said.The EGM also discussed NIIT’s plan to issue American depository receipts (ADRs) as part of its move to acquire software firms in the USA. The company mooted the
resolution to hike the FII holdings after receiving
requests from its present FII holders and some
prospective ones to enable wider participation and higher
liquidity. |
Ranbaxy awards for scientists NEW DELHI, Sept 10 (PTI) — Dr S.E. Hasnain of the National Institute of Immunology and Dr S.K. Panda, Professor in All India Institute of Medical Sciences (AIIMS), and four others have been selected for the Ranbaxy Research Awards for 1997. The other awardees are Dr A.S.M. Krishnarao, Co-Director of Leukocyte Biology Laboratory in Harvard Medical School (USA), Dr K.K. Talwar of AIIMS’ Cardiology Department, Prof Raman Venkataramanan of University of Pittsburg School of Pharmacy (USA) and Dr S.S. Handa, Director of Regional Research Laboratory in Jammu. The awards, comprising a
citation, a trophy and Rs 1 lakh in cash, will be
presented at a function here on October 31 |
Sri Lanka gets trade status COLOMBO, Sept 10 (PTI) — India would accord a special trade status to Sri Lanka to boost bilateral economic relations even as both countries decided to form a working group to remove all bureaucratic bottlenecks. Both countries would set up a working group to study several issues, including the “rules of origin” issue and the steps needed to help Sri Lanka exploit the removal of quantitative restrictions by India on over 2,000 items of trade, Union Commerce Minister Ramakrishna Hegde today told reporters after a meeting with Sri Lankan President Chandrika Kumaratunga. Under the rules of origin principle, which continued to be a contentious issue among SAARC nations, a product listed for trade concessions in India should have a 50 per cent manufacturing base in the exporting country.Nepal and Bhutan have been given special status because they were under developed countries. Though Sri Lanka came in the category of a developing country, India decided to accord such status in view of its close and friendly ties, he said.Asked whether this move would hurt Pakistan and isolate it in the SAARC bloc, the minister said India was prepared to extend the same to Pakistan provided it reciprocated. “Pakistan so far has
not extended the most favoured nation (MFN) status to
India, which we have done long ago,” he said. |
$ 1.5b IDB fund for Pak ISLAMABAD, Sept 10 (PTI)
— Saudi Arabia-based Islamic Development Bank (IDB)
has decided to set up a $ 1.5 billion fund to help the
Pakistan tide over its economic crisis and avoid default
on international debt repayment obligations after
Islamabad agreed to some very tough conditions to secure
the amount. |
Rs 50 crore bio-tech fund set
up CHANDIGARH, Sept 10 — The Small Industries Development Bank of India (Sidbi) has set up a Rs 50 crore bio-technology fund — first of its kind in India — for Punjab, Haryana, Himachal and Chandigarh. Announcing this at a press conference here today, Dr Sailendra Narain, Managing Director of Sidbi, said the fund would help entrepreneurs engaged in floriculture, horticulture and agriculture-based units. Efforts are on to rope in the CII and Delhi-based Bio-tech Consortium for helping entrepreneurs in asset management and training. Celebrating 1998-99 as the “techno-mission year”, Sidbi has set up a Rs 200 crore fund to promote technological modernisation, upgradation of products and processes, to strengthen R&D and provide venture capital assistance. The fund amount can be raised on demand. Earlier, Mr Deepak Singh, Chairman, CII, Small Industries Committee, called for simplification of rules and laws for the SSIs. He urged the bankers to take a liberal approach to NPAs and the small units in these difficult times. Himachal Pradesh, having
no industiral base, can opt for bio-tech enterprises.
“There is tremendous potential in this field. Inert
sugar, (used in ice-creams and soft drinks, potatoes,
chillies, drugs and pharmaceutical have tremendous
potential to grow”, he said. |
Sidbi vs CII Who is right — Sidbi or the CII? The CII’s 13th “Business Outlook Survey” for July-August’98 covering 405 small units from all over the country paints a dismal picture of the SSI sector. According to the survey, 62 per cent of the units feel the general business situation has deteriorated, 30 per cent find the situation unchanged and 8 per cent find an improvement in the scenario. The SSI growth is limited by outdated technology, delayed payments, lack of finance, shortage of infrastructural facilities, export difficulties, inadequate marketing facilities and raw material shortage. SSI exports are inhibited by high prices, lack of credit, outdated technology and lack of information on markets abroad, besides other factors. The Sidbi MD, Dr Sailendra Narain, on the other hand, sounded optimistic on the performance of the SSI sector. And his optimism was based on facts and figures. According to the latest Economic Survey, annual industrial growth in the country was 4.2 per cent. However, SSIs registered a growth rate of almost 14 per cent. “That shows the SSI was the most resilient and dynamic sector,” he remarked. Even during the next one year this sector would maintain its growth rate of 14 per cent, Dr Narain said, contradicting the CII assessment.Sidbi has spent Rs 900 crore on infrastructure development. This would further prop up
industrial development. Sops given to SSIs in the recent
export-import policy would further boost the SSI sector,
he said. |
Captain Cook sale stayed NEW DELHI, Sept 10 (PTI) — The sale of Captain Cook trade mark by DCW Home Products Ltd to a US multinational has been restrained by a Haryana court. In an ex-parte interim order recently Sonepat Civil Judge A.K. Aggarwal said: “The defendant (DCW Home Products Ltd) is directed to maintain the status quo regarding selling, mortgaging, leasing etc the company’s brand name, Captain Cook, till the next date. ” DCW, last month, announced that it had decided to sell Captain Cook brand name to Corn Products Company (India) Ltd, a subsidiary of US-based $ 8.4 billion Bestfoods INC. The court order came on a
petition filed by a supplier of flour to DCW, Trinetra
Builders Pvt Ltd, which claimed that they had a three
year contract for the supply of atta under the brand name
of Captain Cook. |
HSIDC ‘creates’ proof
in plot case GURGAON, Sept 10 — The Additional District Judge, Dr Bharat Bhushan Prasoon, has said that the Haryana Industrial Development Corporation resumed a plot of Jindal Dyechem Industries Private Ltd without issuing any notice to the company and “created evidence” to justify its step. The case had come up in the form of an appeal by the HSIDC challenging a judgement and decree by the Civil Judge, Gurgaon, providing relief to the firm. Dismissing the appeal with costs, the judge affirmed the decree of the lower court. The company was allotted a plot in November, 1985. The entire price was paid in two instalments in August and October, 1986. The firm was informed by the HSIDC about resumption of the plot for not undertaking construction work by March, 1990. The firm contended that no notice was ever issued to it asking it to seek extension of time to which it was entitled on payment of the prescribed extension fee. It also argued that the remedy of resumption was an extreme penalty and could be resorted to in exceptional circumstances only. The HSIDC, however, contended that as the firm had neither set up the unit within the time given as extension nor applied for further extension, it issued show cause notice to it on May 15, 1990. The firm was asked to explain its position within 30 days. As the firm did not reply, the HSIDC resumed the plot on September 10, 1990. The court rejected the
contention of the HSIDC and charged that it was not able
to substantiate its submission that the show cause notice
was sent to the firm “under registered cover”. |
IN the last few months, I have come across many cases where consumers have failed to get compensation from consumer courts only because they did not know how to gather evidence or present them in support of their claim. I would therefore like to quote two judgements of the National Commission here to drive home the importance of collecting supporting documents while fighting a legal battle. In the first case, a company making tents had taken two insurance policies against burglary from two insurance companies. Following rejection of its claim by both the insurers, the tent manufacturer filed two cases before the State Commission — one against National Insurance and the other against Oriental Insurance. The case against Oriental Insurance came up before the State Commission first and it directed the insurer to pay Rs 5 lakh. However, the National Commission before which both filed appeals, said there were gaping holes in the evidence regarding the occurrence of the theft itself which led to the suspicion that the claim may not be genuine. It then set aside the order of the State Commission, leaving the parties to pursue their claim through state investigative agencies and the courts of law. So when the second case pertaining to the same burglary filed against National Insurance came up, the State Commission dismissed it on the basis of the National Commission’s order in the earlier case. However, this time, when the case came up in appeal (New Jaipur Dyeing and Tent Works vs The National Insurance Company and another, first appeal No 255 of 1992), the National Commission held that there was no doubt of the burglary having taken place at all and remanded the case back to the State Commissioner for disposal of the complaint in accordance with law. It even awarded Rs 5,000 as costs to the insured. The reason for this change of opinion was a detailed report of another independent investigator, a retired IPS officer, filed as evidence in this case. The investigator, appointed by National Insurance, had confirmed burglary. This led the National Commission to remark that the State Commission ought not to have dismissed this case purely on the basis of its earlier order. Said the Commission: “Every case depends upon its own facts and the manner in which it is presented.” This is something that every consumer should remember. The second case that I wish to mention pertains to an insurance claim against accidental death. (Shankar Prasad vs The Peerless General Finance Investment and another, revision petition No 535 of 1994). The complainant’s father, Mr Sita Ram Lal had an accidental fall from the staircase of his residence as a result of which he suffered head injuries and eventually died in a hospital. The Insurance company rejected the claim after three years on the ground that the death of the insured was neither reported to the police nor any post-mortem examination conducted. Besides, the admission of the patient in the hospital and later his death, could not be found in hospital register. Both the District Forum and the State Commission dismissed the complaint filed by the nominee on the ground that no evidence, either oral or documentary was produced by the complainant to establish that his father died as a result of the accident, in the hospital. The death certificate issued by the hospital and filed by him was not considered as evidence in the absence of an affidavit. The National Commission, before which the nominee filed a revision petition, pointed out that the complainant had filed a number of documents, but unfortunately had made no attempt to prove them either because of being illiterate or unaware of the procedure involved. The District Forum should have pointed it out and given an opportunity to the complainant to provide evidence, either by way of affidavits or summoning an official of the hospital where the insured died, to prove the death certificate on record. Said the Commission: It is true that the orders of the quasi-judicial bodies have to be based on acceptable evidence which may be either direct or circumstantial, but the proceedings under the Act should be titled against hyper-technicalities. While that’s certainly an advice that consumer courts should follow, these two cases also underscore the urgent need for the government to provide legal aid cells or legal assistance at the consumer courts to help consumers overcome these kind of problems. The government need not
provide lawyers to fight the case. In fact the attempt
should be to encourage consumers to fight their own
battle. Legal aid cells can guide consumers on gathering
evidence for the case and presenting it. These legal aid
cells should be attached to every consumer court at the
district, state and the National level so that consumers
who wish to file cases can take advantage of them. |
Modern Food net falls NEW DELHI, Sept 10 (TNS) — The government is likely to rope in ANZ Grindlays Investment Bank as the global adviser for the disinvestment of Modern Food Industries (India) Limited. An agreement with ANZ Grindlays for the strategic sale of 50 per cent stake of MFIL is expected within 15 days, MFIL Chairman-cum-Managing Director Mahesh C. Jain said at a press conference here today. IDBI has already appointed consultant. MFIL, which is engaged in the production of breads, cakes and fruit juices, recorded a turnover of Rs 180 crore during 1997-98 as against Rs 166.82 crore in the corresponding period last year. It has recommended a lower dividend of 8.5 per cent during 1997-98 as against 20 per cent in the previous year as it suffered a dip in the net profit at Rs 3.5 crore against Rs 6 crore in the previous year. Reacting to the Delhi Municipal Corporation standing committee’s decision asking the CBI to probe the Rs 5.25 crore mid-day meal scandal, reported in a section of the Press, Mr Jain said that the allegations were false and baseless. Kotak Securities’distinction NEW DELHI, Sept 10 (TNS) — Kotak Securities, part of the Kotak Mahindra Group, has been ranked number one amongst top 100 brokers by Primary Market Monitor (Prime) in the number of applications procured in the public issues for the last financial year. Kotak Securities had collected a total of 1,88,278 applications in 13 equity and debt issues representing a 12.28 market share. Kotak Securities has also bagged the number one position by the All-India Ranking of Stock Brokers on the basis of the amount mobilised in pure debt issues. It procured Rs 114.825 crore spread across 3 issues with a market share of 12.11 per cent of the total amount mobilised. Gillette products launched NEW DELHI, Sept 10 (TNS) — Indian Shaving Products Limited (ISPL), a subsidiary of the Gillette Company, today announced the launch of Gillette Series — an integrated line of personal care products for men. The series includes foams, shave gels, shave gel concentrates, after shave lotions, splashes, deodorants and body sprays. Announcing the launch, Vice President, Marketing of ISPL Mr Prakash Nedungadi said that the products are targetted towards estimated 20 million consumers who use shaving cream. 200 crore for Ceat expansion MUMBAI, Sept 10 (PTI)
— Ceat Limited would be investing Rs 200 crore in
creating new radial manufacturing facilities and would
upgrade its existing facilities, Vice Chairman Harsh
Goenka said here today. The capital expenditure is likely
to be financed through debt having a five to six year
maturity at 16 to 17.5 per cent interest he said adding
it would be a private placement with financial
institutions. During the first five months of the current
financial year, Ceat has achieved a gross turnover of Rs
451.10 crore and a net turnover of Rs 377.55 crore. The
company has targetted a two-fold increase in net profits
during the year. |
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| Info policy NEW DELHI, Sept 10 (TNS) — The Minister of State for Information and Broadcasting, Mr Mukhtar Abbas Naqvi, said today that a high- powered group comprising ministers, bureaucrats, corporate captains and academicians was working on a national informatics policy, which was now being given the final shape. Speaking at the inauguration of the All-India Ingres Users Conference here, he said the recent Budget had announced a series of tax concessions for computer professionals. Various incentives were being offered for the development of software parks. PSUs Vishnu Cement Gold recovers Road show Office-bearers |
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