 |
Monday,
July 21, 2003, Chandigarh, India  
|
Re-rolling
mills violating Pollution Act Punjab
Tractors selloff at last stage COAI
refutes reports on prosecuting TRAI BIS raids
to curb fake ISI mark HP land
use policy discouraging investors |
|
|||||||||||||||||||||||||||||
|
Hero
Honda, Bajaj, TVS, LML bike sales up SBI’s
personal banking advances rise PSB net
profit down to Rs 4.43 crore
Book
profit and wait for results
KVPs
|
|
Re-rolling mills violating
Pollution Act Chandigarh, July 20 According to officials of the Department of Industry, Punjab, there are about 150 re-rolling mills working in Mandi Gobindgarh and Khanna. About 80 per cent of rolling mill owners have now installed pulverizers and burn steel grade coal to heat the raw material and ingots. Though furnace oil is the approved fuel for the industry, most of the units are using coal to save money. It has caused the pollution. Some Municipal Councillors have raised the issue with state government officials but to no avail. The officials admitted that after the introduction of the self-certification scheme under the New Industrial Policy, no official had the courage to enter a factory. Consequently, most of the units are using coal in contravention to the Pollution Control Act. The industrialists, however, maintained that they were using coal partially and to meet the challenge of increasing prices of furnace oil. Mr Sham Sunder, Mandi Gobindgarh said the cost of furnace oil fuel had substantially increased recently. For instance, he said: “While coal was available at about Rs 4/kg, the furnace oil has to be procured at Rs 14/litre. We have to use about 40 litre of furnace oil costing Rs 560 to produce one tonne of steel. On the other hand, about 70 kg of coal costing Rs 280 will be used for the production of one tonne steel. The use of coal will save about Rs 280 per tonne, thus encouraging the industry to use it.’’ According to an estimate, say officials in the Central Excise and Customs, every unit working for eight hour was saving Rs 17,000 every day by using low quality fuel. The insiders point out that the rolling mills are illegally procuring steel grade coal from brick-kiln owners. The units have installed coal grinding machines which are used to grind coal to make it powdered fuel for burning/heat the furnaces. Enquiries revealed that some units are selling furnace oil in the black market after purchasing it from the oil depots of IOC, HPCL, BPCL in Mathura, Delhi, Panipat and Ambala. Some are allegedly claiming refunds of excise duty from the Central Excise and Customs Department. Senior officials in the Excise Department though denied the allegation, insiders claimed that since field staff did not insist upon the octroi receipts to verify the claims of use of the furnace oil, the industrialists were able to take claims worth lakhs of rupees.
|
|
Punjab Tractors selloff at last stage
New Delhi, July 20 Punjab Tractors, having a capacity to manufacture 60,000 tractors annually, commands an 18.4 per cent market share, second only to Mahindra & Mahindra. The deadline for the submission of the financial bids, which was earlier fixed for tomorrow, was postponed to July 25 by the Punjab State Industrial Development Corporation (PSIDC). Sources said while around 10 companies were shortlisted for the bidding process, major players in fray are Mahindra & Mahindra, Commonwealth Development Corporation (CDC), New Holland, Escorts and Eicher and Newbridge who have submitted a joint bid. Though a lucrative offer, a major dampener in the entire process is the issue of management control. The sources say aggressive bidding seems unlikely as many bidders are not convinced about securing an absolute control on Punjab Tractors’ 12-member board. The PSIDC has around three members on the board of PTL, the rest being from FIs and independent directors. Given this scenario, the acquirer would have been dependent on the FIs for critical decisions. The Board of Directors of Punjab Tractors though recently recommended amending the company’s Articles of Association whereby the acquirer of the PSIDC’s entire equity stake will be entitled to nominate for the appointment of two directors on the board of company in place of the PSIDC. The financial year 2002-03 was a rough one for Punjab Tractors as the company’s net profit fell by almost 58 per cent to Rs 42.3 crore from Rs 100 crore in the previous year.
— UNI
|
|
COAI refutes reports on prosecuting TRAI
New Delhi, July 20 Telecom Regulatory Authority of India (TRAI) Chairman P Baijal had strongly reacted on Friday to the reported threat by the Cellular Operators Association of India (COAI) that it will prosecute the telecom regulator over the issue. However, COAI Director General T V Ramachandran refuted reports in a section of the media in this regard. “ We have never made such a statement and anything relating to prosecution of TRAI never came up for discussion in COAI,” Mr Ramachandran told UNI here. A war of words had broken out between COAI and TRAI after the telecom regulator issued a consultation paper on the unified licensing regime, a move that cellular operators said would legitimise WLL (M). Reacting strongly to cellular operators’ threat of taking the government and TRAI to court over the issue of the unified licensing regime, Mr Baijal had said it would submit its recommendations to the government by August 30. He had said the recommendations would be given after discussions with all the stakeholders. “I have read that cellular operators will prosecute TRAI for bringing out the consultation paper and I am surprised that an issue for consultation can bring out such strong responses,” Mr Baijal had said while addressing Wireless India 2003 conference here. “It is not only bureaucracy who revels in consulting and in not going forward ...There are people in polity and economy who revel in looking back and looking sideways and not dealing with the issues in front of them.”
— UNI
|
|
BIS raids to curb fake ISI mark
New Delhi, July 20 According to a BIS spokesperson four factories found engaged in illegal production of packaged drinking water include Gyan Food Industries, Sikandra under the brand name “Delta Pure”, K.M.P. Beverages, Balajipuram using the brand name “Sheetal”, M.P. Food Beverages making “Aqua Pure”, all from Agra. Action is also being initiated under the BIS Act, 1986, against Amrit Mineral Water of Mathura which was producing water under the brand name “Thunder-Up”. Raids were also conducted in coordination with Delhi Police here on the premises of three firms dealing with spuriously ISI marked motors and pumps. These include Arora Machinery Store, City Market Ajmeri Gate which was selling motors and pumps under “Plano” brand name. Shivam Bearing and Machinery was selling pumps with “Jyoti, Crown, National, Asian, Sagar, Shiva and Vikrant” brand names and Sapra Machinery Store under “EMCO, Rajdoot and Crown” brands. The crime is punishable by imprisonment upto one year or a fine upto Rs 50,000 or both, he said. In Shakurpur village here, a factory was found engaged in production of electric switches and sockets bearing spurious ISI mark having “Plaza and Rose” brands.
— PTI
|
|
HP land use policy discouraging investors
Chandigarh, July 20 Mr R.P. Malhotra, President, Samadhan — a pressure group for social justice — claimed that a number of industrialists, who wanted to invest in Baddi, Parwanoo and other towns were discouraged due to bureaucratic hurdles. He said as per the existing policy, purchase of agricultural land in the state was banned for non-agriculturalists and outsiders, but after getting the permission from the authorities to change the land use for industrial purpose, the ownership of land could be changed legally. However the industrialists had to spend three or four months to get that permission. In the meantime, the sellers and property dealers would ask for an additional price for the land thus discouraging them to buy land.
— TNS
|
|
Hero Honda, Bajaj, TVS, LML bike sales up
New Delhi, July 20 A total of 12.39 lakh units were sold in the country during April-June, 2003, against 12.02 lakh units sold a year ago, data compiled by the Society of Indian Automobile Manufacturers (SIAM) showed. The moderate growth can be attributed to the motor cycle and step-thru segment which lost steam and recorded a 7.39 per cent rise to 9.74 lakh units even as scooters and mopeds suffered negative growth. Sales of Hero Honda Motors grew by 8.29 per cent to 4.53 lakh units while that of the second-biggest Bajaj Auto increased by 5.76 per cent to 2.32 lakh units. TVS Motor Company posted a 7.8 per cent growth at 1.74 lakh units on the back of growing sales of the indigenously-produced 110cc motor cycle Victor. However, the wholly-owned subsidiary of Yamaha Motor suffered a 50.2 per cent drop to 41,834 units. Sales of LML jumped by over seven times to 55,295 units, mainly due to a strong demand of the 110cc motor cycle Freedom. According to analysts, two-wheeler sales started slowing down from the last quarter of 2002-03 due to deficient monsoon, hike in petrol prices and deadlock on issues related to the implementation of the VAT structure.
— PTI
|
|
SBI’s personal banking advances rise
Mumbai, July 20 The rise has been driven by housing, automobiles, two wheelers and loans against securities, a senior SBI official told PTI here today. The share of the personal banking segment in total credit of SBI has grown from 18.56 per cent as on March 2003 to 19.95 per cent in Q1 of the current fiscal, he said. Housing loans accounted for Rs 764 crore in the period under review, he added. Last month, the bank re-introduced the five years bracket for home loans at 8 per cent floating rate of interest to target high networth individuals and customers seeking loans for repairs and reconstruction. At present the floating rates for upto 10 years is 8.75 per cent and for 10 years and above it is 9.25 per cent while that on fixed basis it stood at 9 per cent and 9.5 per cent respectively. SBI official said other personal loans, such as auto and loans against securities, witnessed a 10 fold rise at Rs 424 crore as against Rs 43 crore in Q1 of last fiscal. The country’s largest commercial bank has an arrangement with Maruti Udyog Ltd and Tata Engineering and Locomotive Company Ltd for auto loans. The SBI official said the bank generally witnesses a substantial increase in advances during the last quarter of the financial year. In the January-March quarter of 2003-04, the bank expects a credit offtake of Rs 1,000 crore per month, he added.
— PTI
|
|
PSB net profit down to Rs 4.43 crore
New Delhi, July 20 The bank registered a growth of 71.55 per cent in operating profit to Rs 280.84 crore from Rs 163.70 crore in 2001-02 but the provisions for outstandings brought the net profit down, PSB Chairman N.S. Gujral said in a statement here. In 2002-03 the bank has managed to bring down cost of funds to 6.78 per cent from 7.59 in 2001-02, the Chairman said. During the last fiscal bank’s deposits grew by 5.92 per cent year-on-year to touch Rs 13,223 crore. Gross advances in 02-03 grew by 7.93 per cent year-on-year to touch Rs 6478.86 crore.
— UNI
|
rc
Book profit and wait for results A long overdue correction finally materialised this week as the two-and-a-half month rally lost steam on the back of mixed earnings from software companies. As a result, the benchmark BSE Sensex registered its first weekly drop after rising for seven consecutive weeks. The 30-share BSE Index lost 29 points during the week to close at 3648. The S&P CNX Nifty shed 21.65 points to close at 1,140. Hind Lever was a big drag on the Sensex after three major foreign brokerage houses came out with negative reports on the company. Software stocks took the biggest hit after Mastek, NIIT and Wipro reported disappointing results. Commodity stocks continued to gain ground on firm international prices. Given the fact that the market is currently in overbought position, fresh gains for the market in the near term do not seem likely. The market may continue to correct itself in the current week and the activity is likely to turn stock-specific. A number of companies, including Tisco, Telco, ITC, Ranbaxy, SBI, ACC, Digital GlobalSoft, ICICI Bank, Satyam Computers, are slated to announce their results this week, but huge outstanding of about Rs 6,000 crore in the derivative segment will ensure that little buying may happen in the cash market. On technical charts, the markets seems to have hit a bottom of 3625 and should see a bounce back. But at the same time if Sensex closes below 3615, the correction may continue. Investors will be better off, if they book profits and sit on the sidelines and see how the corporate India declares its first quarter results this week.
Banking Banking stocks continued their ascent on expectations of strong earnings, soft interest rates and growing retail business. The SBI spurted by over 6 per cent to close at a 10-year high on rumours of a hike in the FII limit. UTI and Bank of Punjab gained on rumours of foreign banks acquiring stake in these banks, whereas Indian Overseas Bank and Andhra Bank gained ground on announcement of good results. The banking sector has seen a lot of activity since November last and it will only be wise to keep only the fundamentally strong scrips in one’s folio with a long-term perspective and sell the weaker players in the industry.
Cement Expectations that cement prices will firm up following the latest consolidation in the sector have fuelled the rally. Gujarat Ambuja and Grasim now emerging in the cement sector, undercutting in cement prices will diminish, as the bargaining power will shift to these two suppliers. The two combines will together control over 42 per cent of the domestic large cement capacity.
Software Technology stocks bore the brunt of the sell-off after Mastek’s fourth quarter net profit fell by 85 per cent. The scrip nosedived to an 18-month low of Rs 200 on Friday. Wipro was another big loser after the company reported 9 per cent fall in its first-quarter net profit, while revenue fell by 3 per cent sequentially. The software stocks are back to form where they started before Infosys had declared better than expected results. As already stressed, investors should stay away from these volatile software scrips for the time being till a clearer picture emerges about the industry as a whole.
|
ty
by R.N. Lakhotia KVPs Q: I had purchased K.V.P. during 2002. The K.V.P’s interests are not being paid, will be paid after 6½ years completion. Is there any liability at me to pay my income-tax monthly. Please further clarify whether K.V.Ps are exempted from the Income-tax after six/half year or not? — V.N. Sharma, Patiala Ans: Yes, you should make payment of Income-tax every year in respect of accured interest on Kisan Vikas Patra. The principal amount received on maturity is exempted from Income-tax.
Standard deduction Q: I would be receiving in the current financial year, pension amounting to Rs 1,64,267 and interest income of 29,650. I want to know whether standard deduction benefit available to me is 25,000 or 30,000 and exemption u/s 80L is 12,000 or 15,000. — Madan Lal, Panchkula Ans: The standard deduction available to you would be Rs 25,000. The deduction u/s 80L for the financial year 2002-03 is Rs 15,000.
House rent allowance Q: I am a Central Government, drawing basic pay Rs 990 (Oct. 2002) +HRA Rs 1980. I am living in my ancestral house at Panchkula. The house was owned by my late father, who died on 29.11.1994. I am the only living issue of my parents at that time besides my mother. My mother also expired on 4.6.1999 leaving myself, my wife and my four children (eldest unmarried daughter D.O.B. 29.10.1978, elder son D.O.B. 12.10.1979, younger son D.O.B. 11.11.1984 and minor daughter D.O.B. 24.2.1988). Kindly clarify if I am entitled for any HRA rebate under Income-tax (Financial year 2002-03) if I pay any house rent to my wife and children for sharing their share of said house. If yes, what is the exact amount. — Surinder Pal, Chandigarh Ans: You can get tax deduction from the amount of House Rent Allowance received by you from your employer if you actually make payment of rent to your wife and children. However, the first issue that needs to be clarified is whether wife and children are even owners of the House Property? In case they are not owners of house property then no tax deduction can be claimed by you from your HRA payment. Did your mother leave behind her a will to make them as co-owners? If no Will has been left by your mother, then you alone would be owner of the house and then you cannot pay rent to your wife and children.
Form 15H Q: This is with reference to views on issue regarding deduction of tax on source from bank interest and other interest for A.Y. 2002-2003. In his view, declaration (Form No. 15H) for non-deduction cannot be filed if the income of declarant exceeds Rs 50,000. With due respect to Counsel the views expressed do not seem to represent correct position of law. In my opinion this declaration can be filed if the total interest payment is less than 50,000 and tax on total income is NIL. This view is supported by CBDT Circular NO. 8/2002 dated 27.8.2002 reported in 124 Taxman Pg. 71,127. Even the amended Form No. 15H requires an assessee to declare that his income from Dividend, interest on securities, other interest, units, NSS payments shall not exceed maximum amount which is not chargeable to income tax i.e. Rs 50,000 and total tax due on income would be NIL. Thus in my opinion an assessee can submit Form No. 15H if tax due on his total income would be NIL after claiming rebates and his total income from units, dividend, interest, NSS payments do not exceed Rs 50,000. — Arun Jain C.A., Amritsar Ans: The Form 15H for the A.Y. 2003-04 could be given only when the total income does not exceed Rs 50,000 in a year. For the current financial year this form for Senior Citizens can also be given when the gross income exceeds Rs 50,000 but the tax payable is Nil.
|
bb
FIIs net buyers
in equities Inflation falls HPSEB systems Tax on petrol Maruti-SBP Oriental Bank Vizag steel Cement output up |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 123 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
