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Pension regulator to limit investment to index funds
Govt meets fiscal deficit estimates
Rupee gains 19 paise
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Raha regrets ‘distortion’ of ONGC performance
Reliance seeks SC guidelines on tendering process
Atlas plans to launch
battery-driven cycles
Enabler in Wipro’s kitty for Rs 231 cr
Mobile cos told to clarify lifetime plans
Arcelor ups stake
Gold, silver plunge
Hyundai Motor chief apologises in court
Arcelor stakeholders seek AGM
CORPORATE RESULTS
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Pension regulator to limit
New Delhi, June 1 The Pension Fund Regulatory and Development Authority Bill (PFRDA) Bill, which has already been vetted by the Law Ministry, will only allow contribution to the pension funds to be invested in index funds in the stock markets, interim pension regulator D. Swarup said here. Existing pension products, offered by mutual funds and insurance companies, will have to comply with new norms for the proposed pension sector, Mr Swarup said. Currently, these funds invest subscribers’ money in individual stocks too. While index funds did not provide as much returns as individual equities, these were not as prone to volatility, Mr Swarup said. However, there would also be a provision for a risk- free scheme, which would invest all its money in government securities, he said. The minimum initial paid- up capital requirement in the proposed pension sector would be somewhere between Rs 10 crore, needed for mutual funds, and Rs 100 crore, prescribed for insurance companies, he said. It was expected to be less than Rs 100 crore but more than Rs 10 crore, Mr Swarup said. As per the PFRDA proposal, there would be at least one pension fund in the public sector. But LIC, SBI and UTI MF had evinced interest in entering the pension sector, besides ICICI, Aviva, HDFC, Mr Swarup said As per the earlier proposal, there would just be six companies in the pension sector to start with. But, Mr Swarup said, all those qualifying PFRDA’s stringent conditions like the minimum paid-up capital, track record, electronic connectivity, countrywide reach and those meeting cost parameters, could be licensed. Mr Swarup said investors to pension funds could switch over from one scheme to another within one pension fund as well as from one company to the other in between. As per the proposed scheme, a subscriber could deposit his money at any collection centre at any place since all those would have electronic connectivity, he said. The PFRDA Bill will now have to wait for the monsoon session of Parliament since it could not be introduced in the recent session. The New Pension Scheme was launched by the Government for its employees joining service after January 1, 2004. — PTI
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Govt meets fiscal deficit estimates
New Delhi, June 1 The revenue deficit performance has been 2.7 per cent, same as the Budget estimate 2005-06, but higher than the revised estimate of 2.6 per cent. The deterioration in revenue deficit is largely on account of shortfall in revenue receipts. The gross tax receipts of Rs 3658.7 billion shows a shortfall of Rs 42.7 billion against the revised estimates of Rs 3,701.4 billion. This shortfall in gross tax collections has been partly due to realisation of receipts of Rs 21.1 billion pertaining to fiscal 2005-06 in April 2006. After taking credit for this amount, the revenue deficit would stand at 2.6 per cent of GDP as projected in the revised estimates for 2005-06. Primary deficit, an indicator of the current fiscal stance of the government, has shown an improvement from 0.5 per cent in Budget and revised estimates 2005-06 to 0.4 per cent. |
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Mumbai, June 1 Earlier, the Indian currency opened strong by eight paise at 46.46/47/USD as compared to the last close of 46.54/55. The rupee traded at 46.36/USD in the mid-morning session. The Reserve Bank of India fixed the rupee reference rate at Rs 46.22 per US dollar, 21 paise up from yesterday’s rate of 46.43. The cross-currency closing rate for rupee against euro was 58.83 (59.55), up by 32 paise from the previous close, for pound sterling it was up by 94 paise at 85.91 (86.85), and for Japanese Yen it was 40.80 (41.28), up by 48 paise from the previous close. — UNI
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Raha regrets ‘distortion’ of ONGC performance
New Delhi, June 1 Mr Raha shot off a letter to Petroleum Minister Murli Deora on May 23, a day before his five-year term ended unceremoniously, contesting sweeping allegations made by former minister Mani Shankar Aiyar, whose adverse comments were cited as the reasons for the denial of extention to the high- profile CEO. Referring to allegations made by the previous minister in a presentation to the Prime Minister’s Office on December 16, 2005, he said “overwhelmingly, information was suppressed or distorted or even invented to raise these allegations.” “It is disheartening that the unprecedented effort since 2001 to achieve improvements in every aspect of the ONGC, with unwavering focus on E&P, has been subjected to disparaging opinions based on deliberate distortions,” Mr Raha wrote giving a 14-page point-by-point rebuttal to each allegation. “...truth should not be drowned in prejudice,” he said. While Mr Aiyar could not be immediately contacted for comments, an ailing Raha did not take calls. The Mumbai High field output had fell to 218,000 barrels per day in 1999-00. “During 2001-05, the decline was arrested and production raised to 270,000 bpd on a sustained basis. The letter listed efforts to bring back Assam, Ahmedabad and Mehsana fields and termed it as “canard” statements that ONGC’s resources were being diverted to downstream refining and power projects or overseas oil property acquisition. “Out of Rs 31,243 crore total capex in last five years, Rs 1,475 crore (4.7 per cent) was spent on downstream business. Out of this, Rs 1,355 crore (4.3 per cent), was spent to acquire 72 per cent equity and exclusive management control of MRPL at the instance of the Oil Ministry,” Mr Raha said, adding that every single investment was made with the approval of the Board, which had nominees of the Ministries of Petroleum and Finance. The letter, a copy of which was also marked to the Principal Secretary to the Prime Minister and the Cabinet Secretary, said natural decline of 6-8 per cent per year had been arrested in most fields and the ONGC brought one offshore and 14 onshore fields into production since 2001. On ONGC’s low success ratio, he said the company followed the Society of Petroleum Engineers (SPE) code and reported a discovery only when “for the first time, clean, cased hole flow of hydrocarbons at stabilised rate and pressure in commercial quantities has been obtained.” The ONGC earned the dubious distinction because it followed stricter and conservative approach and not the oil regulator DGH’s definition of “finding a deposit of petroleum hitherto unknown, which can flow to the surface and be measured by conventional testing.” — PTI
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Reliance seeks SC guidelines on tendering process
New Delhi, June 1 Reliance counsel Mukul Rohtagi said the privatisation of Delhi and Mumbai airports was only the beginning of the public and private sector partnership in the development of infrastructure in the country and there were over 40 such projects, including other airports and mining industry in the pipeline of the government. “Today it was the airports, tomorrow it could be mining and these are huge public assets for which the tendering process could not be like any other normal tendering on unilateral decision of authorities. There has to be some clear guidelines for competitive bidding,” the Reliance counsel told a Bench of Mr Justice Arijit Pasayat and Mr Justice C.K. Thakker. He was arguing on Reliance appeal against the Delhi High Court order upholding the government decision to award contracts for the modernisation of Delhi and Mumbai airports to two consortia of GMR Industries Ltd and GVK Industries Ltd respectively, and dismissing its petition. Reliance’s main contention was that the contracts were granted to the consortia by changing the rules just hours before opening of the tenders even when its group company Reliance Airport Development Ltd (RADL) was the highest bidder for Delhi airport. “In the matter of such a nature, where huge assets of the nation were involved, needed laying down of some special guidelines for global tendering,” Mr Rohtagi argued. The Bench, which will be sitting up to June 9, expressed its inability to complete the hearing on Reliance appeal and deferred it till July 3 with the direction that the matter be placed before the Chief Justice to decide a new Bench and fixing a further date to expedite the hearing.
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Atlas plans to launch
battery-driven cycles
New Delhi, June 1 “A company delegation headed by Joint President Sanjay Kapur is leaving for China, Taiwan and Korea to finalise a tieup with one of the leading group manufacturing such bicycles,” said Mr Salil Kapur, President, Atlas Cycles (Haryana) Limited, told The Tribune today. Such a battery-driven bicycle could hit the market in three months, if all things go as per the plans. “It would be a state-of the-art bicycle, which would enable the rider to drive for 40-50 km on the city roads without sweating, after charging the battery with normal electricity connection,” he said, adding that it would also have the option to drive by paddling as well. Mr Kapur said its price would depend on the portion of imported components and customs duties. However, it would definitely be below Rs 10,000. Atlas Group, which manufactures about two lakh cycles a month, enjoys a market share of about 25 per cent in the domestic market. The company is exporting about 25 per cent of its production, besides focussing on high-end bicycles. As part of the diversification plan, he said: “We are investing about Rs 55 crore for adding CDW and cold rolling mills in the second phase. The present two mills will also be modernised at the new premises in Bawal, Rewari district,” he said. |
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Enabler in Wipro’s kitty for Rs 231 cr
Bangalore, June 1 The acquisition includes upfront cash payment of approximately 41 million euros (which includes actual cash and cash equivalents on the balance sheet), on closure of transaction as well as earn-outs on achieving agreed financial targets over a two-year period. Wipro Technologies Enterprise Solutions President Sudip Banerjee said the Portugal-based Enabler, is a preferred integrator of Oracle Retail (Retek) solutions and provider of retail consulting services for global retailers. The acquisition will bring to Wipro "strong relationships with some of the Europe's best-known retailers and wholesalers, expand its geographical footprints and add two new delivery centres in strategic locations like Portugal and Brazil," Mr Banerjee said. Enabler CEO Antonia Murta, who will henceforth handle Wipro's global retail, described the deal as a "win-win partnership, where Enabler's clients will benefit from Wipro's scale, range of complementary services and proven global services delivery capability. — PTI
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Mobile cos told to clarify lifetime plans
New Delhi, June 1 This is aimed at making the operators disclose key issues as well as reveal to the public any hidden cost in the announcement, so that the consumers are informed before choosing any tariff plan. "We have told the operators that tariff announcement have to be transparent.. the in-between, unspoken lines should be notified as is done in case of the prospectus filed by companies when they go for public issues," TRAI Chairman Nripendra Misra said. Mr Misra said the operators have been asked to clarify the entire lifetime plan before the consumers like what the operator in question's lifetime of the licence period and how much that period have passed and added operators are already doing the same in that direction. "No tariff plans shall be offered, presented or marketed or advertised in a manner that is likely to mislead subscribers," TRAI said in one of its latest circulars to the companies.
— PTI |
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Arcelor ups stake
London, June 1 Arcelor said it had, together with a group of investors, transferred its stake in Sonasid to an ad hoc holding company at a price of 1,350 Moroccan dirhams ($157) per Sonasid share.
— UNI |
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Gold, silver plunge
Mumbai, June 1 Silver recorded the maximum fall of Rs1015 at Rs19,240 per kilo followed by in Delhi by Rs 600 at Rs 18,700. It lost Rs 560 at Rs 18,760 in Mumbai and Rs 450 at Rs 18,200 in Kolkata. The market also weakened in the absence of any retail buying due to off marriage and festival season.
— PTI |
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Hyundai Motor chief apologises in court
Seoul, June 1 “I only rushed forward to make a global car company and failed to look back, causing several legal problems,” Chung Mong-Koo, told the panel of judges in a court-room packed with reporters and Hyundai officials. “I have deep regrets, and will correct the wrongs if given an opportunity this time,” said 68-year-old Chung. He was arrested in late April after an investigation into allegations that Hyundai Motor and its affiliates had created slush funds to offer cash for political favours. The probe, which officially started on March 25, has touched on how the country’s sprawling family-run conglomerates, or chaebol, shift money within group companies, using complex share ownership networks to control their business. He was indicted in May on charges of breach of trust and embezzling 103.4 billion won ($109.4 million) in company funds, some for personal use, and for incurring losses at group companies by forcing them to support weaker affiliates. Chung did not enter a plea — not a requirement in South Korea’s judicial system. Prosecutors said they were opposed to his request for bail. He has been held in a detention centre near Seoul for more than a month. The trial is expected to run for weeks. Some analysts are concerned that lack of direction at the top could hurt the ambitious global expansion plans of Hyundai, the world’s seventh-largest auto maker by sales volume with its affiliate Kia Motors Corp. Hyundai has previously apologised for the scandal and said its Chairman’s family would donate their $ 1 billion stake in car shipping affiliate Glovis to charity. Embezzlement and misappropriation of corporate funds involving more than 5 billion won can each carry life jail terms in South Korea. — Reuters
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Paris, June 1
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BHEL net profit up 62 pc
Mumbai, June 1 It has posted a net profit of Rs 1,679.16 crore for the year ended March 31, 2006, (FY 05-06) as compared to Rs 953.40 crore for the year ended March 31, 2005, (FY 04-05). Total Income has increased from Rs 9,977.36 crore in FY 04-05 to Rs 13,820.02 crore for FY 05-06. The Board of Directors has recommended a final dividend of 20 per cent of equity of the company, making it to a total of 145 per cent of the equity share capital of the company for the financial year 2005-06. This includes the interim dividend of 40 per cent and special dividend of 85 per cent already paid during the year. Sterlite Industries
Sterlite Industries India Ltd has posted a net profit after tax and extraordinary items of Rs 240.71 crore for the quarter ended March 31 as compared to a net loss of Rs 39.34 crore for the same quarter in 2004-05. Total income (net of excise) increased two- fold to Rs 2551.98 crore for the fourth quarter in 2005-06 from Rs 1194.46 crore in the year-ago period, the company said The Board has recommended a dividend of Rs 1.25 per share of Rs 2 each (62.50 per cent) for the financial year 2005-06. For the year ended March 31 the company registered a net profit after tax and extraordinary items of Rs 511.12 crore as against Rs 106.42 crore for the year 2004-05. Simbhaoli Sugar Mills
The Board of Simbhaoli Sugar Mills Limited (SSML) has recommended a dividend of 30 per cent for financial year ended March 31, 2006. The company has reported a 10.94 per cent growth in net revenue of Rs 438.59 crore in the financial year ended March 31, 2006, as against Rs 395.33 crore in the previous financial year. Simbhaoli Sugar's net profit during the year increased by 149.69 per cent to Rs 29.60 crore as compared to Rs 11.85 crore in the previous financial year. NHPC net up
National Hydroelectric Power Corporation today reported an 8.5 per cent rise in net profit at Rs 742.75 crore in 2005-06 as against Rs 684.58 crore in the previous fiscal. The Board of Directors has recommended a dividend of Rs 223 crore, of which Rs 64 crore has already been paid to the government, NHPC said. Sales of the company rose marginally to Rs 1,714 crore compared to Rs 1,668 crore in 2004-05, it said. JCT net down
JCT Ltd today reported a 67 per cent dip in net profit for the quarter ended March 31, 2006, at Rs 2.21 crore as compared to Rs 6.87 crore in the year-ago quarter. Net sales increased marginally at Rs 134.56 crore in the period under review from Rs 134.15 crore in the fourth quarter of 2004-05, the company said.
— Agencies |
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