 |
|
ADVERTISEMENT
|
HAL out of Russian Regional Jet
Gas pipeline within ADAG rights
J&K Bank to hike lending rates by 1 pc
Tata Coffee buys US co
for $220 m
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cadbury to dump 250 tonnes of chocolate
M&M to invest up to Rs 2,000 cr Punjab nod to RIL project likely today
Sensex up 11 points in special trading
Amritsar-London flight cancelled
Market scan
Tax Advice
|
|
HAL out of Russian Regional Jet
Mumbai, June 25 The consortium, christened Russian Regional Jet, plans to build passenger jets with a seating capacity of 60, 75 and 95. “We wanted to join the consortium as a risk partner. We were ready for an investment to the tune of $100 million. But if after all this, some development works cannot be done in India then we think, its not worth such a huge investment,” highly placed sources in the Bangalore-based defence aeronautics behemoth said. This was the first attempt by the public sector undertaking to join the fast-growing and increasingly crowded civilian airplane manufacturing sector. On top of that, sources said, there was not much clarity about the market and valuation. “We don’t have a clear idea about the market and partners in the project. And we believe competing with the existing players like Embraer and Bombardier would be very tough as they are already established players in the regional passenger airplane sector,” sources said. As per the original plan, leading consortium partne, Sukhoi would design the aircraft, which will be powered by a SaM 146 engine, developed by French aeroengine major Snecma Moteurs and its Russian counterpart NPO Saturn. Toulouse- based Thales will provide avionics while Boeing will manufacture the body and take care of the certification. HAL was offered a 10 per cent stake in the consortium as a risk- sharing partner and was to have produced airframe modules, which contains empennage, canopy frame and some critical components for the entire RRJ family, sources said. HAL received this offer during the Farnborough Air Show in 2004 and last year, the company had appointed SBI Capital, as its financial consultant and market advisor for market evaluation. Since its formation in 1942, HAL has been tasked with the overhaul and upgradation of military aircraft. The company has now started sourcing aircraft modules and structural assemblies for the Airbus family of airplanes and engine components for Snecma. “By joining the consortium, we thought at least we can bring in the international standards of aircraft development technology to India that will boost the nascent indigenous aeronautical industry,” sources said. The RRJ will compete with Brazil’s Embraer and Canada’s Bombardier for a leading market share in the regional passenger jet market, which according to Sukhoi estimates, is expected to grow at 25 to 30 per cent over the next five years. With a pricing 10 per cent cheaper than its competitors, the RRJ will have features not of a regional jet but of a mainline aircraft with a smaller capacity.
— PTI |
|
Gas pipeline within ADAG rights
New Delhi, June 25 Schedule-II of the said demerger agreement, even approved by RIL, stipulated that the ADA group could have a captive fuel supply pipeline and acquire gas fields for power and distribution of gas business, Reliance Energy (REL) sources said here. While RIL spokesperson could not be contacted for comments despite several attempts, sources close to the group wondered as to why ADAG was not exploring the legal and arbitration route if it felt so aggrieved by the so-called one- sided non-compete agreement. They also wanted to know as to why the lawyers and others associated with the process of formalising the settlement between the Ambani brothers are silent. REL sources said allegations are now being levelled against it to the effect that it was attempting to enter the gas pipeline business, gas exploration, and distribution of city gas in Mumbai and Delhi in violation of the non-compete agreement. “The allegation is baseless and false,” REL sources said, two days after reports appeared about the ADAG alleging violation of the said agreement by RIL through its plans to set up a captive power project and cargo airport in its proposed Rs 25,000- crore SEZ in Haryana. They said that Schedule-II had earmarked petroleum, including refining, marketing, oil and gas, exploration and production, pipelines and supply and distribution of industrial gas and retail in petroleum, for Mukesh’s group subject to certain exceptions. Under the schedule, resulting group (ADAG companies) could “farm in” for entering into JVs or partnerships with gas producers or participate in government of India process for acquisition of gas/cbm fields for its gas to power and distribution businesses, REL sources said.
— PTI |
|
J&K Bank to hike lending rates by 1 pc
New Delhi, June 25 "We will increase lending rates by 1 per cent across-the-board
from July 1 and the prime lending rate (PLR) will go up to 12 per cent
from 11 per cent," bank Chairman Haseeb A Drabu said. The floating home loan rates will go up to 10.5 per cent from 9.5 per cent for home loans of above Rs 20 lakh, however, the rate will come down by 1 per cent to 8 per cent from 9 per cent for home loans below Rs 20 lakh, Mr Drabu said. "We want to increase home loan exposure in the below Rs 20 lakh category that's why we plan to reduce the rate in this category." he
added. — PTI |
|
Tata Coffee buys US co for $220 m
Mumbai, June 25 The company said in a statement that it had signed a definitive agreement to acquire the Eight 0’Clock Coffee Company (EOC), USA, from Gryphon Investors for a total acquisition price of $220 million. EOC has over 100 years of brand history and retail coffee experience in the USA and is a leading player in the branded whole bean segment and a category leader in the value gourmet segment in the US retail market. Within the broad US retail coffee category, EOC is the third largest brand by volume behind Folgers and Maxwell House, the statement said. EOC had net sales of $109 million dollars and EBITDA of $27 million in 2005. The acquisition provides a sizeable entry platform and an established brand to Tata Coffee in the $21 billion US coffee market, the company said. The acquisition which will be financed through a combination of equity and non-recourse debt will transform Tata Coffee from a regional coffee player in the Indian market to a significant global player with strong and powerful brands in the Indian and US coffee markets, it added.
— PTI |
|
Cadbury to dump 250 tonnes of chocolate
London, June 25 The company said more than a million chocolate bars and Easter eggs recalled from shop shelves and warehouses would be buried at landfill sites across Britain. Government food watchdogs will begin an investigation this week as to why Cadbury took five months to report that a rare strain of the food poisoning bug - salmonella montevideo - had been found in its chocolates. Cadbury discovered a leaking waste-water pipe had infected a chocolate mix at its factory at Marlbrook, Herefordshire, in January, reports Daily Mail. It then called in a private laboratory which told the HPA of its findings within days. Yet this information was not shared until nine days ago. Last Monday the FSA called in Cadbury and ordered the chocolates off the shelves. Last night, MPs called for a thorough government inquiry into the delay. Cadbury, which has been making chocolate for 182 years, insisted that the recall was ‘purely precautionary’.
— ANI |
|
M&M to invest up to Rs 2,000 cr
New Delhi, June 25 The company is currently scouting for a location to set up the new facility which, among other vehicles, is likely to be used for manufacturing a new multi-utility vehicle, Ingenio, that Mahindra plans to launch in 2008.
— PTI |
|
Punjab nod to RIL project likely today Chandigarh, June 25 The meeting to be chaired by Chief Minister Amarinder Singh is also likely to take a decision on abolishing octroi, the sources said. There has been a long-standing demand from several quarters for abolishing the levy. The Mukesh Ambani-led Reliance Industries Limited (RIL) has proposed to set up procurement centres and rural commercial hubs on panchayat lands at various places for its farm-to-shelf project, the sources said. The state government's decision to give land to RIL for the project had sparked a debate in political circles about the terms and conditions on which offers were made by the administration to the business house. — PTI
|
|
|
Sensex up 11 points in special trading Mumbai, June 25 The Sensex ended the day at 10,413, while the Nifty gained 8 points to close at 3,050. The Sensex opened higher at 10,443.60 and touched 10,510.07 before dipping to 10,367.04 shortly afterwards. The scrips that closed higher included Bajaj Auto, Cipla, Dr Reddy's Labs, ONGC, Ranbaxy and Tata Steel. Losers included HDFC, HDFC Bank, Gujarat Ambuja, Reliance Energy, SBI and ACC. |
|
Amritsar-London flight cancelled
Amritsar, June 25 Jet Airways had announced its direct flight to London from here last month.
— OC |
|
Gujarat NRE Coke a good buy
by J.C. Anand Last week Sensex was up by 404 points (4.04 per cent), closing at 10401.30 points. In fact, during the past five trading days, Sensex went down only on June 20; on other days the market kept its upward ascend. Normally, the Indian stock market pursues the path of the Asian and global markets but last week the Indian stock market was positive while the Asian markets were generally negative on most of the trading days. It is, however, difficult to say that the Indian stock market has stabilised. Many brokers expect a fresh spell of correction. The stock market is very bumpy and is marked by a high degree of volatility. The market may open with 150 points down on Sensex and later close at the end with more than 200 points up. Retail investors have no place in this kind of market; and the market players comprise FIIs, traders and mutual funds. During June so far, FIIs have already purchased stock worth Rs 4,480 crore. The US Federal Reserves will meet shortly and it is possible that the interest rates may be hiked. This may affect the flow of foreign FII and NRI funds to India. There are many foreign analysts who are of the view that FII funds for the emerging stock markets would be thinner than in the previous year. It is difficult to recommend any scrip for long-term investors in this choppy and uncertain market. Even companies which have announced bonus shares have suffered fall in their market prices during the last fortnight. Larsen & Toubro (1:1), Atlas Copco (1:1) Gujarat NRE Coke (1:1) are some of such scripts. Gujarat NRE Coke, however, deserves attention as a good and safe investment at the present price level. Its present equity capital (of Rs 10/- face value) is Rs 2907.82 lakh. Its share “premium reserve” stands at 15211.51 lakh and its “general reserve, including profit and loss amount”, stands at Rs 13140.90 lakh. In its 18-month annual report ending March 31,2006, the net profit (after tax) is Rs 311.99 crore. The Directors have recommended a final dividend of 5 per cent in addition to 3 per cent interim dividend aggregating 45 per cent during the period under review. It totals to 50 per cent dividend. It has announced a bonus issue of 1:1. The AGM will be held on July 3, 2006. The company is the only Indian company exporting coke to foreign countries. It has also acquired two coal mines in Australia. The first coal mine has already started coal production while the second one is expected to start operating during the second half of 2007. Coke is used in all iron and steel manufacturing companies. Last Friday, the Gujarat NRE Coke scrip closed around Rs 72. Inflation rate is now at 5.24 per cent (previously, it was 4.72 per cent). It is disturbing news and the Union Finance Minister has attributed it to high fuel prices raised recently. It is expected that the RBI may also raise both repo rates and allow the banks to raise interest rate for depositors. Some foreign analysts have sounded an alarming note that after 10 to 15 months, the international crude prices may move around $ 100 — 120 per barrel.
|
|
|
KVP can’t be had in the name of HUF
by S.C. Vasudeva Q. I purchased KVP (Kisan Vikas Patras) on behalf of HUF being the Karta on 18.09.1999. They stand matured on 18.09.2005, but postmaster said you can’t purchase KVP on the name of HUF so he is not making the payment. I want to know that is there any notification regarding that and are they right? If yes, then from which date HUF can’t purchase KVP? Whether at the time of my purchase is there any such restriction? Please clear it with notification, circulars, rules and to whom I shall approach? — Gurpreet Singh A. It is correct that KVP cannot be purchased in the name of HUF. However, the funds of HUF can be invested in KVP in the name of ‘Karta’ and the income arising on such KVPs will be taxable in the hand of HUF. However, the Post Master can refuse the payment in the name of HUF on the maturity of KVPs. He should, however, make the payment in the name of Karta. Section 16
Q. I am working as a lecturer. Recently, I had a chance to visit Europe to attend a science workshop. The air ticket was amounting to Rs 49,000. Rs 20,000 were sponsored by the Indian Government Agency, while the rest Rs 29,000 I had to pay from my own pocket. Kindly let me know if there is any provision so as to deduct this Rs 29,000 from my taxable income since I went to attend an educational conference. — Vikas Gupta A.
There is no provision in Section 16 of the Act which details the deductions allowable against salary income. It may thus not be possible to get the deduction of Rs 29,000 contributed by you for attending the science workshop. Section 80C
Q. My total salary income during the year 2005-2006 is Rs 3,09,000, I intend to deposit Rs 1,00,000 towards ICICI Prudential Tax Plan. I want to know my tax liabilities. — Ajay Sandhu, Mohali A. You need to ensure that the above plan is notified under Section 10(23D) of the Act. If it is so notified, then the same would be covered under Section 80C of the Act and deduction under the said section would be allowable to the extent of Rs 1,00,000 under the said section. Wrong IT return
Q. I wrongly filed my income tax return for Assessment Year 2003-04 in July, 2003 as Rs 1,50,000 though my total annual income from all sources was barely Rs 15,000. On 20.09.2005, a letter was posted by Mr. K.L. Sharma T.R.O. Range, Hoshiarpur, initiating recovery proceedings vide ITCR-1 served on 01.10.2004 for claiming outstanding arrears of Rs 5,171 whereas my present earning from law-practice/farming is only Rs 500 p.m. which I spend on bus fare to reach the court. My wife is 10+2 and non-earning member of my family and in her family way. My parents are aged and depend on me for care and affection, but cannot financially assist me from his meager pension of Rs 900 p.m. after deducting loan on pension Rs 3300+3000=6300 p.m. till August, 2006 for marriage of my two younger sisters. I have permanent account number. My query is how do I get out of my tax liability as I am feeling mentally harassed by use of coercive measures by ITO, Hoshiarpur Range, to collect income tax which I am not liable to pay due to having filed wrong tax return, though ITO has sealed my Punjab National Bank Bhunga A/c No. 13989 in December, 2003, and withdrew Rs 865 in my balance. Now I don’t have any money/regular earning and no bank balance or landed property in my name as on 04.10.2005. Kindly advise. — Parvinder Singh A. It would have been advisable for you to file an appeal before the Commissioner of Income tax (Appeal) so as to explain the inadvertent error in the filing of return. It seems the period of one month from the date of receipt of Assessment Order has already expired. In the circumstances, the only remedy available would to file an application under Section 264 of the Income tax Act 1961 (The Act) requesting the Commissioner of Income tax to revise your assessment. The application can be filed within one year from the date on which the Order of the Assessment was communicated to you and has to be accompanied by a fee of Rs 4,500. Tax liability
Q. My salary income plus defence pension income for the financial year 2005-06 will be Rs 2.45 lakh. My contribution to GPF would be Rs 90,000. I am a disabled defence pensioner and re-employed in Govt. service. (Defence pension service element and disability pension element is exempted from income tax vide letter no. FNO200/51/99-ITA-I Govt. of India Ministry of Finance Department of Revenue CBDT) that exemption is Rs 38,520. Please let me know what will be my tax liability. — Darshan Singh Rana A. It is not clear from your query as to whether the amount of Rs 38,520 is included in the total income of Rs. 2.45 lakh indicated in the query. Presuming that the same is so included, the total income would thus be Rs 2,06,480. After deducting the contribution to General Provident Fund, the net taxable income would work out at Rs 1,16,480 on which a tax of Rs 1,681 including education cess would be payable. |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
