Sunday, October 11, 1998
today's calendar
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B U S I N E S S | Sunday, October 11, 1998 |
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spotlight today's calendar |
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Punwire radio among 35
projects cleared Kar
Vivad Scheme clarified at workshop |
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Inviting industry— Economy
to grow by |
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Hosiery complex in Sonepat
Khadi
silk denied discount No
‘Saral’, this form |
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Punwire radio among 35 projects
cleared NEW DELHI, Oct 10 — The Foreign Investment Promotion Board (FIPB) today cleared 35 proposals amounting to Rs 500 crore. The major projects that were cleared include a proposal by Infrastructure Leasing and Finance Company (ILFS) for constructing and operating an eight-lane bridge connecting Noida and Delhi. Other important proposals cleared by the Board today included those of Punwire Telecommunications, Otto Burlington, Alcatel France and Boots Company Plc. For the Rs 630 Noida-Delhi bridge project, a new company — Noida Toll Bridge Company Limited — has been formed. All necessary permissions and concessions for the eight-lane bridge to be built across the river Yamuna has already been given and the competitive bidding has been awarded to Mitsui Marbeni Consortium. The toll has been linked to the consumer price index (CPI) and at current prices a toll of Rs 10 per car and Rs 30 per bus would be charged. The bridge would be constructed on Build-Own-Operate-Transfer (BOOT) basis. External Commercial Borrowings is expected to infuse $ 5 million while another $ 5 million would be raised by the consortium through the equity route. Financial closure for the project is expected to be achieved by October 15, sources in the FIPB said. Hindustan Technologies will form a joint venture company with Alcatel France and Skysat Holding of Singapore for Satellite launching in India. The foreign partners would be bringing in Rs 176 crore and pick up 49 per cent stake in the venture along with the NRIs. The total cost of the project is Rs 1100 crore with a paid-up capital of Rs 360 crore. Under the Information and Broadcasting Ministry, Mistsui Corporation of Japan and Century Direct Fund of Mauritius have been allowed to hike their combined equity in United Studios to 38 per cent from the present 4 per cent. They would be investing a total of Rs 4 core for audio visual software production. The Board also cleared the proposal of Punwire for radio paging services with an investment of Rs 64.5 lakh. Besides Bina Power has been given the nod to hike its equity to Rs 173.5 crore. The proposal of Boots
Company Plc of Britain seeking fresh royalty for new
products has also been cleared. In addition, Maersk
Medicals’ proposal to hike its equity in TTK Maersk
Medicals has also been given the nod. An additional Rs
3.35 crore would be infused by the hike in equity holding
of TTK, FIPB sources said. |
Inviting industry— Farooq
style CHANDIGARH, Oct 10 — Dr Farooq Abdullah made a dramatic, humorous but honest appeal to the industry here today to help Jammu and Kashmir recover from the ravages of almost decade-old militancy. Addressing the CII National Council members, Dr Abdullah, the State Industry Minister and top J and K officials listed the recent developments in the State on the industrial front. Pepsi is setting up a Rs 40 crore project in the State. A textile city is coming up at Kathua. An industrial growth centre is under way at Samba. Two export promotion parks and one software technology park are being set up. The Birlas are making additional Rs 30-40 crore investment. Sounding down-to-earth, Farooq said the “single-window system” is an ideal, but it doesn’t work. Corruption can be minimised.It cannot be removed altogether. Northern States must get together to clear roadblocks to development and ensure smooth movement of goods from one State to another. Allaying fears of insecurity, Farooq said: “Yamraj se mil kar aya hoon. Industry lagao, tumhe kuchh nahin hoga.” In the lighter vein he continued: “We can’t be fundamentalists. In fundamentalism you can’t tease a girl. Our boys love to tease girls”. Nor do girls in Kashmir wear a burqa. They do so when they go out with somebody and don’t want to reveal their identity, he said. The underline message was:
welcome to Kashmir. It is normal. |
Kar Vivad Scheme clarified at
workshop CHANDIGARH, Oct 10 — The PHDCCI organised a workshop on the “Kar Vivad Scheme 1998” here yesterday which was attended by industrialists of Punjab, Haryana, Himachal Pradesh and Chandigarh. Mr S.S. Jha, Commissioner, Central Excise, Chandigarh, while explaining the scheme, said the purpose was to sort out controversies. It was decided that cases in which full duty had been paid in protest and the appeal was pending, the matter would be taken up with the higher authorities. On acceptance of the affidavit under the scheme by the designated authority, the amount of duty payable could be paid in instalments in 30 days. Mr Ashok Khanna,
Vice-President of PHDCCI, said the scheme had a
tremendous appeal and would minimise litigation. |
Economy to grow by 6 per cent: Sinha NEW YORK, Oct 10 (PTI) — The Indian economy will grow by around 6 per cent during the current financial year despite the problems posed by US economic sanctions as well as the Southeast Asian currency meltdown. “The Indian economy is slated to grow by at least 6 per cent in the current fiscal year,” Sinha told US investors at various meetings while reassuring them that the liberalisation measures would be carried forward. He said sound economic policies followed by successive governments over the last two decades saved India from bearing the brunt of the Southeast Asian turmoil which left many of the so-called “Asian tigers” gasping. Despite the general depression worldwide, the country had posted a reasonable growth rate of more than 5 per cent in the last financial year, Sinha said. At a series of meetings with top firms like Ford Motors, Ernst and Young, Lehman Brothers, Solomon Smith Barney, Goldman Sachs and Philip Morris, Sinha stressed that India was a safe destination for foreign investment and said his government was committed to further reforms. His day-long engagements included a meeting with the top officials of the New York Stock Exchange (NYSE), where he was accorded the honour of ringing the bell to start trading on Friday morning. Flanked by NYSE Chairman Richard Grasso and President William Johnston, he came to the trading hall and rang the “opening bell” amidst loud cheers. During the meetings, investors appreciated India’s reform policies but wanted the pace to be accelerated. Sinha elaborated on the
measures undertaken over the last few months to further
de-regulate the economy by de-licensing key segments of
industry like oil, coal and sugar.
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Hosiery complex in Sonepat CHANDIGARH, Oct 10 (PTI) — The Haryana State Industrial Development Corporation (HSIDC) will develop a hosiery complex over an area of 120 hectares at Bahri in Sonepat district which will be a part of the industrial complex sprawling over an area of 500 acres at Bahri near Ganaur. This was stated by Mr Shashi Pal Mehta, Industries Minister, Haryana here today. He said the industrial complex would accommodate 450 fully developed industrial plots of various sizes ranging between 450 sq mtr to 1800 sq mtr. An industrial
infrastructure development centre was also being set up
at Sirsa over an area of 30 hectares. An industrial
estate over and area of 55 hectares was being developed
in Manakpur near Yamunanagar. The corporation had also
proposed to set up an industrial estate at Palwal over an
area of 62 hectares in the first phase. |
Ispat fires over 300 workers CHICAGO, Oct 10 (IANS) — Ispat International N.V., owned by London-based non-resident Indian Laxmi Mittal, has fired more than 300 white collar workers at Inland Steel Company, one of America’s biggest steel makers. Ispat had acquired the Chicago-based Company for $ 1.43 billion in July. Company sources said Ispat laid off 36 unionised employees this week at its Indiana Harbour Works in Chicago. They said more lay-offs were expected as Ispat restructured its new properties. Most cuts were said to be
at the Harbour Works plant, though some were at two
steel-finishing plants in northern Indiana that Ispat
owns with Nippon Steel Corporation. A spokesperson for
the company confirmed that the employees had been
“discharged”, but declined to elaborate. |
Khadi silk denied discount CHANDIGARH, Oct 10 — Come October and it’s time for the 90-day 30 per cent rebate on prices of khadi items to begin. However, there is a catch this time that has robbed the sale on silk items of its sheen. There is no discount on silk fabric more than Rs 200 per metre, saris worth more than Rs 1,000 and men’s wear costing above Rs 500. This policy of the Ministry of Industries defies logic as these are the items which are most popular. So much so that customers, in this season of festivities and weddings, book material worth thousands in advance. A visit to the khadi retail outlets in Sectors 22 and 17 shows few customers at the silk counters: a far cry from last year when a day’s delay could result in you not getting the colour of your choice. A management official laments: “Last year, we did a business of Rs 7 lakh in the first five days of the sale period, while this time we have barely touched Rs 2 lakh.” The standard KVIC products — khes, durries, blankets, mattresses, jackets, salwar kameezes, kurta pyjamas, miniature wood panels, metal artefacts, leather shoes and bags, herb-based shampoos, henna, soaps, detergents, chywanprash, honey etc — are all there for the buyer to pick. While most of them are being basically produced by rural artisans in a manner adopted years ago by Gandhji , using the humble charkha, some efforts to modernise the concept are apparent. The single-spindle charkha has given way to the eight-spindle one. The KVIC trains artisans in the use of new technology. Khadi is available in brighter colours and prints and the interweaving of polyester, terry and silk yarns gives a finish that is comparable to the material rolling out from mills. Buying hand paper and
envelopes and file covers made of it that are more
durable than plastic and made in a “pollution
free” way gives you the satisfaction of contributing
your mite to eco-friendliness. |
No ‘Saral’, this
form CHANDIGARH: The Central Board of Direct Taxes has issued notification No. S.O. 794 (E) dated 9.9.98 in respect of income tax return form popularly known as “Saral”. This has been introduced for the first time in Finance (No. 2) Act, 1998. The return form so called simple is not meant for corporate and other assessees like charitable/religious trusts or institutions claiming exemption under Section 11 of the Income Tax Act. The form has been numbered as Form No. 2D Saral and added after form No. 2C prescribed under the Income Tax Rules. The assessees concerned have now option to file either of the form No. 2, 2A, 2B and 2C whichever is applicable or Form No. 2D Saral. The time for filing of income tax return in the applicable cases has been extended to 31st. Oct., 1998 vide Order No. nil (F.No. 220/2/98-IT (A-II) dated 9.9.98 issued by CBDT. Saral, a two page return form contains 31 items and also requires the assessees to attach details on separate sheets as annexures which may be more than the two page return form. The following instructions in brief should be noted while filling form No. 2D Saral:- 1. The Form is required to be filled, in duplicate. 2. In case of salary income attach Form No. 16. 3. Attach other documents supporting the Income shown and exemption/reliefs etc. claimed in the return and taxes paid viz. Advance-tax challans, TDS certificates. 4. The assessee should give name of the bank, account number, to facilitate Credit of refund, if any due. 5. Give details on a separate annexure wherever required in respect of the followings:- (i) Income from house property. (ii) Income from business or profession, attach computation of income statement along with profit & loss account for income and expenditure account) and auditor’s report wherever required. (iii) Regarding capital gains, location of asset/property, sale amount and expenses etc. and the year of purchase with value etc. (iv) Income from other sources, to show interest invoke and income from units etc. separately. (v) Admissible deductions or relief claimed under Chapter VI-A from the income. (vi) Income claimed exempt. There will be six to seven
detailed annexures which are required to be attached with
the income tax return on Form No. 2D Saral in case the
assessee has income under all heads. The form, therefore,
does not remain “Saral”. |
With the death of Dr Inderjit Singh, aged 87, on October 4, 1998, the country in general and Punjab in particular has lost a top banker. Born on January 11,1911 in Musakhel (now in Pakistan) and initially named Hira Lal, Dr Inderjit Singh did his B.Com (Hons) from Hailey College of Commerce, Lahore. He became a fellow of the Institute of Chartered Accountants of India. He joined the Central Bank as an accountant in 1932 and stayed there till 1944 when he joined UCO Bank. In 1960, Dr Balbir Singh, a brother of the famous Punjabi poet, Bhai Vir Singh, offered him the post of General Manager of Punjab and Sind Bank, which was then a small entity with only 13 branches and a business of Rs. 2 crore. Dr Inderjit Singh accepted the challenge and achieved tremendous success. He rose to be the bank’s Chairman-cum-Managing Director. When he retired on January 2,1982, the bank had 550 branches and a total business of Rs 1,000 crore with more than 11,000 employees. Dr Inderjit Singh was a philanthropist, a sensitive and loving human being who tirelessly worked towards the uplift of the not-so-fortunate sections of society. He was President of Guru Nanak Foundation and also founded a chain of schools and other institutions. Known for his philanthropic activities, Dr Inderjit Singh was also President of Bhai Samund Singh Gurmat Sangeet Trust. He was widely respected by Punjabis for his selfless contribution to the economic and social upliftment of the community. He remained President of the International Punjabi Society for many years. He was also associated with the Chief Khalsa Dewan. When economic liberalisation began, the banking industry was thrown open to the private sector. Dr Inderjit Singh was among the first few to be granted a licence to open a bank in the private sector by the RBI. Thus the Bank of Punjab started its operations on April 7,1995, fulfilling his dream of providing world-class banking services to the people of India. (TNS) A school is born At his interaction with the CII National Council members, Mr Parkash Singh Badal did some plain-speaking. Reacting to a CII representative’s demand for better hotels and flights, Mr Badal told industrialists: “You should adjust yourself in 3-star hotels if 5-stars are not available, given the prevailing economic conditions in the country.” He said: “You can’t imagine the extent of poverty in villages where one room is shared by an entire family – father-in-law and daughters-in-law , brothers and sisters, kitchen and even goats all in one room.” He asked industrialists to leave crowded cities and reach out to villages. Help villagers, he pleaded. Moved by the speech, the CII top brass rose to the occasion and announced that the CII would contribute money for setting up a girls school at Padhri Saidan – a backward village in Amritsar district adopted by the Punjab Government for its over-all development. (TNS) Yogic tea It was like a Bollywood plot set in Hollywood.From a part time worker at a restaurant in western Hollywood, Ranbir Singh Bhai today has many Americans waking up to his blend of “yogic” tea. Ranbir Singh migrated to the USA in 1972 and started working part-time in a restaurant in Western Hollywood. After a few years the restaurant floundered due to mis-management. Ranbir Singh negotiated the debt in return for ownership and managed the restaurant for 13 years. He initially introduced yogic tea as a item in the menu list of the restaurant. Even though it is called tea, the beverage is actually made of 24 different herbs and spices which includes dal chini, ginger, cardamom, cloves and coriander among others. In 1984, he and two other friends, dared to experiment,and invested $ 185 to manufacture the product in granular form — that is to make it available in the same form as that of instant coffee. And the results were there for all to see. By 1989, the annual sales figure reached $ 250,000. The annual sales figure currently is in the range of $ 18 million. (TNS) Tearful onions Their reputation of a tearjerker is being reinforced in New Delhi in a hugely ironic manner, housewives are now bidding a tearful adieu to onions as their price is crashing through the roof. Though menfolk are displaying an unusual chivalry to woo them back to kitchens by sweating it out in a milling crowd to buy a kg of onion at the subsidised rate of Rs 10, the price of this till-now-plentifully-available vegetable appears to have plateaued at around Rs 50 in the open market. Also, the part-pungent,
part-aromatic smell of onions, as these were being
sauted, which wafted from the kitchen and appeased your
olfactory nerves and satiated your plates, is all
becoming a matter of fond remembrance. (UNI) |
Q: Does the expression “such candidate” in Rule 20 of Bihar Judicial Service Rules means to include only SC/ST candidates in supplementary list? Ans: S.C. was dealing with the issue in Surendra Narain Singh v State of Bihar (1998-II-LLJ. 342). Appellants in this appeal have raised the question relating to the interpretation of Rule 20 and in particular the words “such candidates” occurring therein. Seniority list of the Munsifs in the Bihar Judicial Service was the subject-matter of the present appeal. The appellants claimed seniority over Respondents 3 to 34 by reason of their appointments as Munsifs being earlier in point of time to the said respondents. They were selected and appointed Munsifs in the 15th examination held under 1955 Rules. Upon careful consideration of rival contentions on the interpretation of Rule 20, the S.C. took the view that the expansion “such candidates” in Rule 20 could not be given the restricted meaning to include only SC/ST candidates in the Supplementary list. Once the merit list was prepared the same list could not modified and the same had to remain in force until the supplementary list was prepared but without any compromise as regards merit. In conclusion, the S.C. observed that Respondents 3 to 34 who were appointed to vacancies of 15th examination would have to be given seniority list over appellants although they came to be appointed later than 23-5-75 but against 33 vacancies which were then existing to which appellants had no right. Admittedly, the appellants were below the respondents 3 to 34 in the merit list. Consequently, the S.C.
held that these appellants could not claim seniority over
Respondents 3 to 34. The claim of the appellants was held
to be without any merit. Finding no merit, the S.C.
dismissed them.
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Q: I have got relief u/s 80DD. If my younger brother (Mentally retarded) wholly dependent Rs 15000 at sources. Now my brother is expired on November 9, 1997. Please advise me whether I am eligible for full amount or on Pro-rata base. — M.L. Garg, Swarghat Ans: In respect of medical treatment of your brother you would be entitled to a tax deduction u/s 80DD of the Income-tax Act, 1961. The total deduction for the Assessment Year 1998-99 in Rs. 15,000 per annum. The deduction is permissible not on the basis of the period for which the expenditure was incurred for such medical treatment and this expenditure namely Rs 15,000 is for one year. Hence, if your brother expired in the month of November, ‘97 you will be eligible to take full deduction u/s 80DD for the Assessment Year 1998-99 if you spent the sum upto Rs 15,000. If, however, the amount spent by you is less than Rs 15,000 the deduction would get reduced to the actual amount so spent by you. Q: Kindly clarify whether the amount withdrawn from NSS 92 including its interest upto the date of its withdrawal in 1997 is not to be added to the total income or only the NSS 92 deposit. Kindly also specify under what government notification or legal proof NSS 92 is exempted from the income tax, so that it can be mentioned in the tax return to convince the Assessing Officer. —Dr. Sahab Singh, Nawanshahr. Ans: In respect of investment under the National Savings Scheme-1992 the interest accruing during the whole year is to be added to the income of the tax payer. However, the principal amount is not to be added to the total income. The qualifying amount for deduction in respect of the interest from NSC is Rs 12,000 within the overall limit of exemption u/s 80L. The refund of NSS amount is exempted from Income-tax which is very clear from the scheme itself. The principal amount was taxable in respect of the earlier scheme of NSS investment. Q: It is submitted that I was sponsored for 3-year special degree course by my Department from 1.9.96. I applied for the study leave+earned leave+half pay leave in the month of 9/96. The leaves were sanctioned by the department in the month 3/97. The arrear of pay from 9/96 to 3/97 was paid to me in 4/97. The department has now asked me to submit the Income Tax return. Please guide me whether the arrear of pay of the year 1996-97 from 9/96 to 2/97 which was paid to me in the year 1997-98 (in 4/97) is to be counted in the income of 1997-98 or in the income of 1996-97. An early reply is expected please. — Punnu Kamboj, Kurukshetra Ans: The arrear salary received by you has been shown in the accounting year in which the income was due. Please remember for the purpose of taxation of salary income, salary not only actually received but salary due but not received is also liable to Income-tax. If, however, at the time of submission of the return you were not aware of the likely receipt of arrear salary income by you, then you may show the arrear salary income in the year in which it has been actually received by you. Your office must have already deducted income-tax on such arrear salary received by you. It is now obligatory to file Income-tax return if your net taxable income exceeds the maximum exemption limit even when tax payable may be nil due to tax deduction at source. It is, therefore, suggested that you must file your Income tax return. Q: I am serving government employee (College Lecturer) in Haryana. Can I claim tax exemption from the NSCs VIII Issue purchased during 1997-98 in the name of my wife or minor daughter u/s 88 of the Income Tax Act 1961? My wife is also a college lecturer. Does the interest received from the maturity of NSCs received during F.Y. 1997-98 qualify for tax exemption u/s 80L? — Balram Chawla, Palwal Ans:
Investment in NSC in the name of your wife and minor
daughter will not bring you any tax rebate u/s 88 of the
Income-tax Act, 1961. The Interest received from the
maturity of the NSC will, however, qualify for tax
exemption u/s 80L of the Income-tax Act, 1961. The
maximum amount exempted is Rs. 12,000 within the overall
limit of other exempted investment income. |
Reckitt & Coleman A 51 per cent subsidiary of the British giant, Reckitt & Coleman, Reckitt & Coleman of India has diversified interests in toiletories, household products, pharmaceuticals, etc. Household products contribute the maximum to the sales which amounts to nearly 34 per cent. The company markets its products under popular brand names like Dettol, Dettol Soap, Cherry Blossom Shoe Polish, Disprin, etc. Dettol can be considered its premier brand given the fact that it commands 85 per cent of the share in the liquid antiseptic market. On the financial front, the company’s track record appears satisfactory. The company has now set its sights on the rural market and to tap the same it plans to resort to aggressive brand marketing. Recently, the company introduced a myriad range of products which include, Dettol Shaving Cream, Lizol, Woolite, etc. The company plans to resort to rapid indigenisation of raw materials, which could prove beneficial for its future prospects. Backed by strong parental support, it now appears poised for excellent growth in the future. The same render its medium to long term prospects encouraging and investors with a long term perspective could consider investing in this scrip. Krebs Biochem WITH a virtual monopoly in the anti-asthmatic products segment viz. ephedrine and pseudoephedrine, Krebs Biochem is riding the ongoing boom in its segment. This company initially started off as a 100 per cent EOU, before starting to cater to the domestic market. This is all the more important, as more than 90 per cent of its exports reach the US market, with the rest going to Canada, Hong Kong, Thailand, Ghana, Japan etc. Although this company will be adversely affected by the 4 per cent surcharge on imports levied in the latest Union Budget, and the non-utilisability of the 5 per cent Modvat credit, its high level of exports should compensate for the same, especially in the light of the recent depreciation of the value of the rupee. Finally, one must also note that this company is engaged in a highly competitive segment, where margins are getting thinner by the day. Hence, though an investment in this scrip is not inadvisable, it should ideally be done at price declines. Cadbury CADBURY India Ltd is a
dominant player in the chocolate and malt food segment.
The company has several reputed brands such as Dairy
Milk, Eclairs, Perk etc. due to which it dominates the
chocolate segment with a market share of 70 per cent. In
the chocolate-based drinks segment, its brand Bournvita
enjoys over a 50 per cent market share. On the financial
front the company’s performance has been
satisfactory. The company has set up new processing
plants at Pune for crumb, chocolate making and moulding
capacity expansion for wafer products. The future
prospects of the company appear to be fairly secure. |
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| Gold falls NEW DELHI, Oct 10 (PTI) — Silver continued to roll down on the bullion market today on persistent selling by stockists against the increased arrivals from neighbouring states and closed with further losses. Gold also plunged on lack of buying support despite the festival season. The quotations: Silver .999 (ready) 7,450, delivery 7,450. coins — buyer 11,000 and seller 11,100. Standard gold 4,350, ornaments 4200 and sovereign 3650. Telebox ICRA |
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