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Sunday,
June 2, 2002, Chandigarh, India  
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Govt
announces revised duty drawback rates Exports go
up 18 pc in April Disinvestment
Commission report on June 3 |
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SBP to
open 4 new commercial offices Ind-Swift
Labs net before tax up 35 pc Tata
Chem net at Rs 126.82
Bona
fide need
Fear of
war reduces air traffic by seven per cent
* The meteorological
department has hinted that the build up of the monsoon is encouraging.
A third consecutive year of good monsoons should re-invigorate
confidence in the economy.
Nationalised
banks yet to grow up
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Govt announces revised duty drawback rates
New Delhi, June 1 Of the 850 items, duty drawback was reduced in case of 450-500 items, revised upwards in the case of 200-250 items and unchanged in the case of over 50 items, Drawback Commissioner S. S. Renjhen told PTI here. The All Industry Duty drawback rates are revised every year 90 days after the duty changes are announced in the Budget. Though duty on non-ferrous metals was reduced by over 30 per cent cummulatively, government has ensured that decrease in duty drawback was not that steep in exportable items using these raw materials including handicrafts in view of the difficult export scenario. In addition to the revision of the existing categories, around 50 new categories have been introduced in the drawback schedule, Renjhen said. Renjhen also pointed out that no changes had been effected in the case of leather even though the import duty had been reduced from 35 to 30 per cent as leather is a major item of export. There were also no changes for bicycle components as very little imported materials were used in their manufacture. Reduction in case of knitted garments was 0.5 per cent while in case of woven garments it was 2.5 per cent, he said adding the cut in textiles drawback ranged from 0.5 per cent to 20 per cent. Following the government’s decision to levy excise duty on hank yarn, the drawback rates for handloom products had been revised upwards, he said. Asked if the government would re-consider some of the drawback rates, Renjhen said, “the drawback rates have been announced based on the inputs provided by the concerned councils”.
PTI
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Exports go up
18 pc in April New Delhi, June 1 In rupee terms, exports were Rs 18,006.29 crore, which is 23.56 per cent higher than the value of exports during April, 2001. India’s imports during the first month of current fiscal are valued at $ 4090.11 million registering a decline of 0.09 per cent over the level of imports valued at $ 4093 million in April, 2001. In rupee terms the imports increased by 4.46 per cent. Oil imports during April, 2002, are valued at $ 1296.24 million which is 8.31 per cent higher than oil imports valued at $ 1,196.83 million in the corresponding period of last year. Non-oil imports during April, 2002 are estimated at $ 2793.87 million lower by 3.56 per cent. Such imports valued at $ 2897.14 million in April, 2001. The trade deficit for April, 2002, is estimated at $ 409.22 million which is lower than the deficit at $ 978.97 million during April, 2001.
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Disinvestment Commission report on June 3 Chandigarh, June 1 Of the 74 state owned enterprises, the state government has share capital in 36 PSUs and the ACIs to the tune of Rs 3,397 crore and loans amount to Rs 5,033 Crore as on March 31 last year. The PSUs and ACIs together have incurred losses of Rs 186 crore during 2000-01. They have also accounted for accumulated losses of Rs1445 crore. The PSUs have provided employment to 1,18,624 persons (managerial 4382, non-managerial 78308, Group-D staff 18700, on contract basis 550, daily wage / work charge 12184, drivers / conductors of PRTC 2749 and tube-well operators of PSTC 1751). The public sector, in its present shape can be better characterised as over-invested with poor returns, over-employed with low productivity, excessive control with low efficiency and talent under utilized. Economic restructuring exercise necessitate major reforms in the public sector aimed at increasing its efficiency and profitability and reducing operating losses of public sector units to manage fiscal burden on the State. The general public can download the draft report of the Commission from the Punjab Government web site “http:// punjabgovt.nic.in /dcr/report.htm” On June 3 after 4.00 p.m. The procedure for making a representation against the recommendations of the Commission is explained in detail under the head “Representation” at the end of the report. Representation(s) must reach the Commission’s office in Udyog Bhavan, Sector 17, Chandigarh , on or before 4 p.m. on June 25, the Press note said.
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PSIDC in debt snarl-II CHANDIGARH: PSIDC MD Viswajeet Khanna says the presentation to the Chief Minister, Capt. Amarinder Singh, was by way of stock-taking. It was intended to enable the new entrepreneur-friendly government frame its policies to promote industrial growth. Keeping in view the prevailing market trends, including recession, the government is now working on yet another attractive one-time settlement (OTS) scheme as an incentive to entrepreneurs as also a leverage to the PSIDC in such a delicate situation. The PSIDC had earlier also resorted to OTS of loans in 21 cases from 1995-96 to date, thereby, sacrificing around Rs.8.43 crore. It gave in “charity” around Rs. 5.50 crore to 11 such companies in 2001-2002 alone, which were not eligible under the RBI guidelines. Even “assets clause” was deliberately deleted from OTS adopted by the PSIDC, say sources. Taking advantage of this, companies mortgaged their assets to banks and replaced PSIDC loans with bank loans. Ironically, industrialists, who owe huge sums to the PSIDC and are in a position to pay, yet take advantage of OTS, using the right connections, and get away without paying the interest to the tune of crores. Here are some such
beneficiaries having politico-bureaucratic connections: Sarna Foods Ltd. (Rs 1.07 crore), owned by a senior functionary of the Delhi Sikh Gurdwara Pabandhak Committee; Amar Singh and Sons (Rs 28.68 lakh), related to late Giani Zail Singh; Uniscans and Sonics (Rs 45 lakh), owned by Mr R.K. Gupta; reportedly of Tehelka scam; Satluj Fun Resorts (Rs 50.44 lakh), related to Mr Vinod Jain, former Chairman, PSIDC; Sterling Hotel and Investments (Rs 33.38 lakh), reportedly close to Mr Rakesh Singh, former MD, PSIDC; Parbolic Drugs (Rs 50.36 lakh), owned by Mr Pranab Gupta, son of Mr J.D. Gupta, a retired Haryana bureaucrat. In loan portfolio, influential defaulters also include: Mr Pawan Sachdeva, Asian Alloys (Rs 12.33 crore), reportedly related to an IPS officer of Punjab; Mr Gurbachan Juneja, Krishan Engineering (Rs 11crore), close to Mr S.K. Tuteja, former MD, PSIDC; Mr M.S. Bolaria, Guru Nanak Paper Mills (Rs 7.25 crore), reportedly to be politically close to Mrs Margaret Alva of the Congress; Mr Amritpartap Singh Sekhon, Banak Chemicals and Packagaing (Rs 5.25 crore), close to Punjab bureaucrats; Col. B.P.S. Deol and Lt. Col. G.P.S. Grewal, Navrattan Steels (Rs 5 crore), reportedly close to Mr R.S. Mann, former Chief Secretary; Mr Virsa Singh Sidhu, Harman Dairy (Rs 4 crore), reportedly close to Mr Parkash Singh Badal; Mr Arun Ummat, A.M. Coirs (Rs 2 crore), son-in-law of Mr Harnam Das Johar, former Speaker, Punjab Vidhan Sabha; Mr Kuldip Singh Sangha, MTI (Rs 5 crore), reportedly close to Mr T.K.A. Nair; Mr Sadhu Ram Singla, ROM Industries (Rs 4.55 crore and working capital Rs 5 crore), reportedly close to Mr D C Mahendru, ex-Additional MD, PSIDC and close to Mr Harcharan Singh Brar, former Chief Minister. At least 10 other defaulter companies owe to the PSIDC Rs 45 crore — reportedly courtesy Mr A.S. Chatha, Mr I.S. Bindra and Mr P S Bajwa, besides, famous scam of Northland Sugar Complex, which in addition to 12 IAS officers involved Karam Singh Gill, Minister, Industries, in the Beant Singh government. Interestingly, despite the unfavourable hot winds blowing against the PSIDC, the Department of Finance has always stood guarantee for the bonds and loans (secure/unsecured) of over Rs. 600 crore. It was not unaware that these were not for any “development” but to “liquidate” past borrowings. Once again Rs.100 crore bonds issue is in the offing. Mr Khanna proposes to use the money, thus raised, to retire old debt. The question is whether raising fresh bonds is the solution which will further perpetuate the debt-trap or retrieving the over due Rs 1,050 crore from 160-odd defaulters? There are reports that the PSIDC Board on May 24 approved waiver of interest of Rs. 62 lakh to Winsome Yarns — a company doing fairly well — owned by Mr Satish Bagrodia, former Rajya Sabha Member, Rajasthan. At the meeting, the PSIDC also approved release of further equity of Rs 69 lakh to Alpha Bhoj — a company of Mr Harish Bhasin and Mr Rakesh Goel, the business associates of Mr Suraj Gupta (Suraj Solvents and Diamond Agro), already a major defaulter in equity (over Rs 26 crore). Concluding part of this
series on Tuesday.
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SBP to open 4 new commercial offices New Delhi, June 1 SBP Chairman and Managing Director, Mr A.K. Purwar told newspersons here today that these branches will handle high-value corporate accounts offering aggregate credit facilities of more than Rs 2 crore. The commercial branches of the bank constitute 68 per cent of the total Commercial and Institutional (C and I) credit portfolio of the bank. He said that the bank currently has a network of 723
branches and 96 extension counters with 38.73 per cent of the branches being located in rural areas, 26.14 per cent in semi-urban areas and 23.65 per cent in urban areas and 11.48 per cent in metro areas. Further retail network has been strengthened with the establishment of 100 ‘Housing Cells’ for exclusive finance to housing sector. Similarly ‘business cells’ for other segments are also being established at various branches. Mr Purwar said business cells for other segments are also being established at various branches. Retail network has been strengthened with the establishment of “100 housing cells’’ for exclusive finance to the housing sector. The Managing Director said the bank would now move to the rest of the country and set up 500 branches in various parts, including South India. The licence for these branches is yet to be procured from the Reserve Bank of India. Mr Purwar said the bank was well on its way to becoming a leading technology savvy bank by technological upgradation which is proceeding at a fast pace, with 403 computerised branches out of the total 723 branches. The facility at ‘Anywhere/ Anytime Banking’ already provided at Chandigarh will be extended to all important centres. He said bank has launched a large number of new products namely Total Home Loan Scheme and Medi-Home Flexi Finance.
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Ind-Swift Labs net before tax up 35 pc Chandigarh, June 1 The turnover of the company increased by 22 per cent over the previous year figure from 922 millions to Rs 1128 millions. The 37 per cent of the revenues of the company were generated from the exports which also jumped by 12 per cent from 37.50 crore to 42 crore. Commenting on the performance Mr V. K. Mehta, Jt Managing Director said “The introduction of new molecules in the high growth therapeutic segments of Cardiology, Diabetlogy and Anti-depressants has resulted in improved performance.” “The major success has been the acceptability of the Company’s products in the international markets”, Mr Mehta added. Besides setting up a new R&D wing at the existing facilities, the company carried out a major expansion plans in its R&D Centre with an investment of over Rs 4 crore. During the year over 3.5 per cent of the Company’s turnover was contributed towards the Research and Development which resulted in the company launching 6 blockbuster drugs during the year, besides bringing in cost efficiencies and process improvements in the existing molecules. The year also saw the successful commencement of production in the company’s new multi-purpose manufacturing facility at Derabassi, Punjab set up at a cost of Rs 60 millions.
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Tata Chem net at Rs 126.82
Mumbai, June 1 Net sales/income from operations was also lower at Rs 1,481.32 crore for the period under review as against Rs 1,502.14 crore in FY-01. Tata Chem Managing Director Prasad Menon told newspersons here yesterday. In view of the interim dividend of Rs 5 per share declared this month, the company has decided not to recommend any final demand for FY-02.
PTI
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rc
by Praful R. Desai Bona fide need Q: Simply because husband doing consultancy work at Ajmer, can’t be said that the landlady and her husband had no intention to shift at Udaipur? Ans: Rajasthan H.C. in Subhash Siahwant v Madhulika Agarwal (2002 (1) RCJ 268) was dealing with this point. Landlady and her husband living at Ajmer. Landlady having house at Udaipur and husband at Jodhpur. Husband had retired and now wants to shift to Udaipur. Merely doing some consultancy work at Ajmer, cannot be a ground to hold that the plaintiff and her husband had no intention to live at Ajmer. It is also not expected from the husband of landlady to remain idle after retirement and is also not expected that the landlady should immediately shift from her place to service to different place and start some work at the place where he is seeking eviction of the premises. The purchase of the immovable property and construction of the residential house are sufficient grounds and they matter very much because when having choice to own the property at different places, as in this case, at Udaipur, Ajmer and Jodhpur, the landlord when purchased the residential house at a particular place by investment of huge amount, that factor itself is sufficient indicative of intention of the landlord to reside at that place. The plaintiff and her husband had full opportunity to purchase the house at Ajmer but they did not choose to do so. When the plaintiff stated on oath that she and her husband wanted to shift to Udaipur, no suggestion has been given by the defendant-tenant in cross-examination that the shifting from
Ajmer itself was not bona fide and in case they want to shift, they should shift to Jodhpur. The above fact only shows, in the opinion of the H.C., that the defendant also was not in a position to suggest the alternative accommodation for shifting at Jodhpur or remaining at Ajmer though in view of the various judgements, this right is not available to the tenant to suggest how and where the plaintiff would live. So far as the question of comparative hardship is concerned, it is clear from the evidence of the plaintiff, observed the H.C. that her husband had retired, she wants to live at Udaipur since her mother, brothers, sisters and her brothers-in-law are all living at Udaipur. She has no other accommodation at Udaipur. Therefore, in case of refusal of decree of eviction, the plaintiff will naturally suffer greater hardship, whereas the defendant failed to prove any hardship except the natural hardship due to the eviction of any tenant and in view of the reasons given by the trial court, the H.C. also concurred with that opinion and held that in case decree of eviction if not granted favour of the plaintiff, the plaintiff will suffer greater hardship than the defendant. With the result, the H.C. dismissed the appeal and confirmed the decree of eviction. |
ty
by K.R. Wadhwaney Fear of war reduces air traffic by seven per cent The aviation and tourism industries’ hopes of recovery have been thwarted. As war fears have escalated, the USA and some other countries have advised people that they should think twice before travelling to the subcontinent. The statistics show about 6 to 7 per cent of traffic has been reduced. According to travel agents, several bookings have been cancelled and more are likely to be cancelled because of war clouds. “May is generally low on traffic and it has become worse”, said two agents. The outgoing traffic has also not grown much though vacations in schools and colleges have already started. In view of drop in traffic, airlines have been offering discounts. Different airlines have been following different yardsticks for advance purchase excursion (APEX) system. This is causing instability in the market. Some airlines have walked out of adhering to the APEX system since, according to them there is no uniformity. There is virtually ‘open house’ as rules are more flouted than adhered to by airlines. The ticket on the Delhi-London-Delhi sector for example can be had from Rs 32,000 to Rs 43,000. As traffic — in-bound and out-bound — has not picked up and as climate is not conducive in the subcontinent, several airlines have held in abeyance their expansion plans. It is not certain whether Air-India will be able to translate its plans of operating flights to Frankfurt, Paris and Chicago or wait for the situation to improve. The two national carriers, Indian Airlines and Air-India, have once again hit air pocket in regard to expansion of fleet. Amidst this uncertain scenario, Air-India pilots have expressed their inability to train Afghan pilots for the three aircraft that are being presented to it. Maybe, retired pilots will be inducted to undertake training there. Travel worldwide has become risky. But it’s more so for Indians who find skies unfriendly. During the past two months, several Indians, with valid and proper documents, have been questioned. Some of them have even been detained. The Indian Chamber of Commerce has confirmed that the Indian travellers are being treated shabbily. While the External Affairs Ministry has taken the issue with concerned authorities, the immigration authorities in Hong Kong and other places maintain that there is no racial discrimination.
Indigenous plane The first indigenous aircraft ‘Saras’ has received the air-worthiness certificate. It is poised to take to skies before the year is out. If and when the aircraft flies, it will be a great achievement for country’s aviation experts. The small Indian aircraft will provide as a ‘fourth level’ feeder in executive transport, border patrol, air ambulance and will have a seating capacity of 14. The Rs 1.31 billion aircraft is the collaborative effort of several Indian agencies. About 10,000 components have been used in the aircraft. |
sti
* The meteorological department has hinted that the build up of the monsoon is encouraging. A third consecutive year of good monsoons should re-invigorate confidence in the economy. * While speculations are ripe as to whether the current fluid situation would mount to a war, such an eventuality could be futile both financially and functionally. * As investors are looking for assured eagerly, they may seek refuge at the IPCL counter. Considering that there is 50 per cent chance of acceptance during the open offer, there could be another 10 per cent return in the short run, even assuming a conservative post offer price of around Rs 100. * In these uncertain conditions, Grasim tops the list of many fundamental as well as technical analysts. * The market is abuzz with rumours that ITC could buyout or take a stake in Wimco. There is definitely some quick money to be made at this counter. * The Polaris scrip seems to have caught the fancy of many analysts who are predicting better days ahead. The merger with OrbiTech Solutions has been warmly welcomed. * At current valuations, McDowell is an attractive FMCG stock in the Indian markets, says a brokerage house. * Impressed by Ashok Leyland’s (All) performance under tough market conditions, a foreign brokerage has initiated coverage on ALL with an overweight rating. * Balaji’s stream of fast growing new launches along with mature products adds strength to its business model. With popularity at a high, Balaji is constantly improving its realisation on its hit serials. However, profit booking may restrict the stock from gaining further ground, says a renowned brokerage. * Bharat Electronics is expected to benefit in a big way from defence orders. The counter might see some profit booking but should move up, says a prominent broker. * It has been high voltage drama once again at the Shyam Telecom counter. Bears seem to have been caught unawares by the FDI clearance for foreign equity participation in subsidiary Shyam International. * Two wheeler major Hero Honda can recover, as fund houses seem willing to consider the stock at declines, though there is a reluctance to chase the stock at higher levels. * The Zee stock has been on a sharp downslide. A technical rebound looks to be round the corner, according to a technical
analyst. — Ashok Kumar
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DFI exodus There is a buzz that the biggest sellers in the markets of late have been the DFIs & not the FIIs. So much so for the constantly raised bogus of FII hot money exodus !
FMCG bonanza The grapevine has is that whereas the FMCG major that liberally paid out a hefty dividend to compensate the differential in the post-budget scenario is being applauded, analysts are worried about this machismo at a time when the company’s bottomline refuses to grow.
Written-off The grapevine has it that a prominent institution turned bank has just written off a whopping figure from its asset base on the insistence of its auditors. There is considerable speculation whether this is just the tip of the iceberg.
Shipping story The buzz in the corporate cocktail circuit in the business capital is that a private sector shipping player half the size of the shipping PSU on the block is the frontrunner for a strategic stake. Watch the action as it unfolds. |
cr
Nationalised banks yet to grow up Off late our nationalised banks have woke up to the competition posed by private banks. They have started declaring certain facilities to the citizens but “conditions apply”. In fact they have not fully grown up yet. They are still working on toddlerlollipop relationship. They are demanding lollipops for giving the facilities otherwise provided heartedly by private banks. Last week, I happened to visit the Leela Bhawan, Patiala branch of State Bank of Patiala. The main entrance prominently displayed (1) Extended working hours (2) Seven days working (3) Single window clearance (4) ATM facility. Since I was already getting these facilities in Bank of Punjab, I decided to open an account here also and went inside to try my luck. Here came the hurdles. The person incharge laid down the conditions for opening a Savings A/c. (1) Minimum balance of Rs 5000 (2) A fixed deposit of Rs 5000 (3) An introduction by a customer of the same branch. I returned empty handed, realising why private banks are getting more and more business. Bank of Punjab is giving all these facilities to me without any of these restrictions. If they can survive and thrive without these restrictions, why not our nationalised money mobilising institutions. Will the Head Office of the concerned bank (SBOP) care to explain. Hemant Goyal, Patiala |
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Milkfed Wills Sports TVS sales |
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