New Delhi, October 15
Reliance Industries Ltd (RIL) today reported nearly 16 per cent rise in net profit for the second quarter this fiscal as higher earnings from oil refining and petrochemicals business helped it offset a dip in natural gas production.

The net profit was up 15.8 per cent at Rs 5,703 crore during July-September - RIL's highest quarterly profit since 2007, the company said. RIL said its showpiece Krishna Godavari basin D6 gas fields have seen a sharp drop in production "mainly due to reservoir complexity".

KG-D6 fields output dropped 20 per cent to 147.2 billion cubic feet or an average of just over 45 million standard cubic meters per day during the quarter.

The drop led to revenue from oil and gas exploration business fall 17.2 per cent to Rs 3,563 crore and pre-tax segment profit by 10.2 per cent to Rs 1,531 crore.

But this was more than made up by good performance by its twin adjacent refineries at Jamnagar in Gujarat with a combined capacity of 1.24 million barrels a day.

RIL said it earned $10.1 on turning every barrel of crude oil into fuel in the quarter as compared to $7.9 per barrel gross refining margin (GRM) a year ago. Higher GRM helped the firm earn 40.3 per cent higher pre-tax profit of Rs 3,075 crore.

The company's refining margins were better than Singapore average of $6.18 per barrel.

Higher volumes and prices helped the firm's petrochemical business post a 10.2 per cent rise in pre-tax profit to Rs 2,422 crore.

Even though the company had received at least two instalments, of the $7.2 billion it is getting from UK's BP Plc for selling 30 per cent interest in 23 oil and gas blocks including the prime KG-D6, its debt has risen. RIL had an outstanding debt of Rs 71,399 crore on September 30 compared to Rs 67,397 crore as on March 31, 2011.

It was expected that the company would use proceeds from BP to pre-pay its debt and reduce its interest outgo. It had cash of Rs 61,490 crore ($ 12.6 billion), up from Rs 45,775 crore as on June 30, 2011. RIL Chairman & Managing Director Mukesh D. Ambani said: "The increase in profits was largely driven by improved performance in the refining and petrochemicals business. All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110 per cent. "RIL has strong balance sheet and sustained earning base to pursue growth opportunities."

Turnover was up 34.7 per cent to Rs 80,790 crore. Increase in volumes accounted for 3.5 per cent growth in revenue and higher prices accounted for 32.5 per cent growth in revenue. Exports were higher by 52.2 per cent at Rs 101,872 crore as against Rs 66,936 crore in first half (H1) FY10-11. — PTI

Paris, October 15
Concerned over soaring oil and commodity prices resulting in high inflation, India today asked G-20 member countries to evolve a mechanism for stabilising the volatile price movements.

"The best way to cool soaring prices is to boost output with better technology, more competition among more producers and better information," India's Finance Minister Pranab Mukherjee said at meeting of G20 finance ministers and central bank governors on commodities and energy. He said the volatility emanates from the developed countries as prices quoted by them act as benchmark. This becomes a concern for emerging markets which are the major commodity importer. "...Excessive volatility suppresses price signals that equilibrate demand and supply in the real economy and are consequently very destabilising. The G20 needs to develop a consensus on dealing with this threat to strong and sustainable growth," he said.— PTI

New Delhi, October 15
The Empowered Committee at a meeting held yesterday has decided to levy value added tax (VAT) on sugar and textile. The VAT may be imposed 4-5 per cent on these items from April 1 next year.

The meeting was held under the chairmanship of Deputy Chief Minister of Bihar Sushil Kumar Modi. Besides, Delhi Chief Minister Sheila Dikshit, who looks after the Finance Department of the Delhi government, Finance Minister of Haryana, Punjab and other states attended the meeting.

Briefing reporters after the meeting, he said till 2005-2006, the Union Government was collecting additional central excise duty on tobacco, sugar and textile and the states were getting one per cent more in their share from the central divisible pool of the total tax proceeds. However, the central levy was abolished as recommended by the 13th Finance Commission and hence, the states too suffered losses on revenue. 

New Delhi, October 15
The National Stock Exchange has received formal approval from market regulator SEBI to set up a new SME platform.

"The new platform would not only make capital available to large number of companies but will also act as a catalyst for venture capital in the country as it will provide exit opportunities to early stage risk investors, NSE said.

The National Stock Exchange has been in touch with leading SME financing institutions, rating agencies and venture firms among others, to bring them together on the new platform.

"We are committed to providing a credible and efficient market place for young and growing enterprises to raise capital from informed investors," NSE CEO Ravi Narain said. — PTI 

In response to recent water-logging at the Terminal-III, the GMR's corporate communications department says it was an unprecedented cloudburst that caused flood at the new terminal which is otherwise functioning to the satisfaction of all departing and arriving passengers.

It says: "The storm water drain design is based on standards of the Indian Road Congress (IRC). The standard mandates that the drain be capable of handling 55 mm of rainfall per hour. However, Delhi International Airport Limited (DIAL) has proactively implemented a design which can handle 98.11 mm of rainfall per hour (this is an event which is likely to occur once in 100 years in Delhi). This is 78 per cent more than the standards mandate. However, the recent rain was 117 mm per hour which is 19 per cent more than even the extended provisioning made by the DIAL".

The corporate communications further says: "The entire water flow from the Radisson hotel junction was towards Terminal-III, which led to the water stagnation".

The hotel is at least 4 km away from the T-III. If the water flows for 4 km and floods T-3, it certainly amounts to an "engineering disaster".

According to latest inquiry, the authorities are determined to plug this loophole so that similar occurrence does not hinder operations at the Rs 9000-crore new T-3.

The DIAL has secured another world record. The announcement for departing passengers is made in 11 languages at the Indira Gandhi International Airport's (IGIA) Terminal-III.

Worldwide, electronic board does all the relevant talking. It displays vital information as to which flight would depart from which gate.

Aviation analysts are of the view that the announcement in 11 languages is one too many. After all these passengers are able to fill in their disembarkation and embarkation cards in the prescribed language/languages, then where is the need for making announcement in 11 languages.

No wonder, a contemporary newspaper, in its editorial, has raised questions. It asks:

"One, can the British or American accent that the voice over PA (public address) is dunked in and (2) can someone please change the horrendous carpet that spreads across the T-3 like a fungal growth gone hard?"

With the change at the top in Air India, there is re-thinking whether time is ripe to buy bulk of the Dreamliners 787 from Boeing. Maybe, the national carrier will opt for a few until its financial belly improves. In the meantime, however, the airline has discontinued training of the pilots on this luxury airliner.

Q: This is with reference to your column “Investors Guidance” in The Tribune dated August 7, 2011. My son has recently accepted employment abroad & hopes to continue & shall be in NRI category during this year. He had four savings bank accounts before he left India.

- One is SB A/c Linked to car loan A/c

- The second is SB A/c Linked to home loan A/c and in which ELSS maturity is periodically credited.

- Third is SB A/c linked to Demat A/c

- The last SB A/c where his superannuation pension is credited periodically.

Hence he is not in a position to close any of the accounts except for the third one above.

Further, the car loan A/c & home loan A/c are occasionally credited with EMI by me from my sources & hence the need to maintain these A/c’s.

Under the above circumstances, my son proposes to open a separate NRO A/c at my place of residence (Bhatinda). He further plans to remit EMI to his outstanding car & home loan directly from abroad.

Will the arrangement planned by my son be in keeping with the law? — KD Uppal

A: As per the law, an NRI cannot maintain and operate any resident savings bank or fixed deposit accounts.

On becoming an NRI, the person is required to inform the bank about the change in status. The bank will then redesignate the existing residential accounts as NRO. The NRI can continue to use these accounts as he was using them earlier.