Wednesday, October 28, 1998
today's calendar
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B U S I N E S S | Wednesday, October 28, 1998 |
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spotlight today's calendar |
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Inter-corp investment norms
soon
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Telco net loss comes down
Exchange
in Gurgaon |
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SKF Bearings goes into red Bank
defers recovery of loans from farmers Concession
on DAP, MOP fertilisers soon
Hind
Lever net at Rs 223.37 crore HCL
Infosystems net shoots up 520 pc Corporation
Bank turnover rises Cadbury
net spurts ‘Credit
still far away from SSIs’ First
phase of Panipat refinery commissioned |
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Inter-corp investment norms soon CHENNAI, Oct 27 (PTI) — Finance Minister Yashwant Sinha today said new guidelines on inter-corporate investments would be issued soon and its focus would be on transparency in operations. “We have to lay down the ground rules. The Companies Act now permits inter-corporate loans and investments upto 30 per cent. We are going to raise these limits and the guiding principle will be transparency in operations, ” Sinha told reporters here. The Union Cabinet had yesterday cleared proposal to amend the Companies Act for permitting companies to buy back their shares and to free inter-corporate investments. “Our desire is to see that a facility made available to meet a certain situation is not misused,” Sinha said. Referring to the lukewarm response to the government’s economic package, Sinha said: “There will always be doubting Thomases,” and the government had done what needed to be done and it would now wait for markets to determine their own course. Asked whether there was a conflict between the Prime Minister’s announcement that Rs 28,000 crore would be spent on a huge national highway project, which might involve greater public spending, and the Finance Ministry’s stated aim of reducing the fiscal deficit to about 3 per cent, he said there was some misunderstanding about the issue. Sinha clarified that Mr Vajpayee did not suggest that the entire amount would be spent in a single year nor did his own aim to bring down fiscal deficit to 3 per cent mean that it would be achieved this year itself. A national highway of such a magnitude could not be built in a single year, as anyone would know, he said, adding that he had provided for Rs 500 crore this year for the National Highways Authority of India, while another Rs 800 crore would be raised through the cess on petrol. The amount already with
the NHAI could also be leveraged to start the project, on
which work would commence in 20 different places this
year, Sinha said.
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Telco net loss comes down MUMBAI, Oct 27 (PTI) — Telco has reported a net loss of Rs 18.84 crore during the second quarter of 1998-99 taking the total loss in the first half of the financial year to Rs 54.47 crore. The reduction in the net loss in the second quarter has been attributed by Telco to improvement in sales in the second quarter, tighter control on operating costs and better working capital management, the company said in a statement today. The Tata flagship witnessed a marginal improvement in sales in the second quarter of 1998-99, but the first half sales volume remained down to 53,224 vehicles from 83,363 vehicles in the corresponding period of 1997-98. Overall sales volume grew by 9.5 per cent and in value terms by 12 per cent during the second quarter of 1998-99. Telco said its total income for the first half at Rs 2,746.01 crore was 29 per cent lower than the Rs 3,881.56 crore recorded in the same period last year. Telco had earned a net profit of Rs 213.93 crore in the first half of 1997-98 and Rs 294.65 crore for April 1997-March 1998. Telco said the small car
project is on schedule and “Tata Indica” is
slated for launch in December 1998. |
Bajaj Auto net profit increases MUMBAI, Oct 27 (PTI) — Bajaj Auto Ltd has reported an increased net profit of Rs 226.20 crore for April-September 1998, against Rs 205.38 crore in the corresponding period last year. Sales, including other income, in the first half of 1998-99 was Rs 1,820.94 crore, up from Rs 1,630.79 crore in the same period of 1997-98. Bajaj’s gross profit was up from Rs 372.89 crore in the first half of last year to Rs 410.05 crore in the first half of current year. Of the total sales, exports during the period was Rs 82.71 crore as against Rs 66.14 crore during the same period last year. The Pune-based company
said it has been able to maintain its two-wheeler market
share with a volume growth of 13.9 per cent, which was
aided primarily by the launch of three new products
— Caliber, Legend and Spirit. |
SKF Bearings goes into red NEW DELHI, Oct 27 (PTI) — SKF Bearings India has recorded net loss of Rs 23.9 crore in the first half of 1998-99 compared to a net profit of Rs 10.3 crore in the same period last year. The loss was on account of Rs 27 crore pay out for voluntary retirement scheme (VRS) and restructuring costs, the company statement here said today. According to unaudited financial results for first half announced its sales during the period declined to Rs 169.4 crore from sales of Rs 185 crore in April-September 1998-99 last year. The Company is implementing restructuring programme including a VRS for its employees. The cost of the VRS and
other related costs estimated at Rs 56 crore are proposed
to be written off in the current year, release said. |
Bank defers recovery of loans from
farmers JALANDHAR, Oct 27 — The State Bank of Patiala has deferred the recovery of loans from farmers, considering the recent rain and their failure to sell paddy at the support price. Announcing this today at a “farmers’ meet” in Jhingar Kalan, near Dasuya, the Director of the bank, Mr Jagjit Singh Hara, said that though the recovery of loans has been deferred, further loans will be sanctioned to farmers. Dr J.S. Kullar, Director, Extension Education, PAU, advised farmers to change the cropping pattern to avoid marketing difficulties and undertake allied activities to supplement their income. Mr A. Bhattacharya, General Manager of the bank, assured timely credit facilities to the participants. Jalandhar zone has disbursed Rs 40 crore to 10,095 farmers during the 1st half year. The bank officials handed
over the keys of 19 tractors to farmers, besides giving
cash loans. A farmers’ club was launched at Jhingar
Kalan under their Vikas Vahini Volunteer (VVV) programme. |
Concession on DAP, MOP fertilisers
soon NEW DELHI, Oct 27 — The rates of concession on decontrolled fertilisers like DAP and MOP are under consideration and will be announced shortly, the Union Minister for Fertilisers and Chemicals, Mr Surjit Singh Barnala, said here today. Addressing a meeting of the Consultative Committee of members of Parliament, Mr Barnala said for the present the prices of these fertilisers for the Rabi season have been kept at the level of the Kharif 1998 season. Since uncertainty about the concession has given rise to apprehensions, the Government was planning to monitor the situation closely. Though overall there may
not be any problems in the availability of DAP, the
supplies may remain tight during the peak months of
November and December this year in certain pockets of a
few States. The Minister assured the members that the
Government would ensure that the situation remains under
control. |
BOI net profit nosedives MUMBAI, Oct 27 (PTI) — Bank of India’s (BOI) net profit nosedived to Rs 101 crore in the first half of 1998-99 against Rs 221 crore in the corresponding period of the previous year. The bank recorded a sharply lower operating profit of Rs 277 crore during April-September 1998, compared to Rs 366 crore in the same period of 1997-98. As at September end 1998,
NPAs slipped to 13.17 per cent from 13.15 per cent at the
end of first half in 1997-98. BOI had earned a net profit
of Rs 364.51 crore for the whole of 1997-98. |
If gold does not glitter LUDHIANA, Oct 27 — A large percentage of the gold jewellery sold by India’s jewellers is not of stated purity, according to a study conducted by the World Gold Council. Hence, the need for a foolproof method of testing gold purity without damaging the jewellery which is sought to be met through the launch of a “karatmeter” — a machine that quickly and accurately measures the purity of gold. The machine, which was formally inaugurated by Mr Johnson Verghese, Group Manager, Tanishq, the jewellery division of Titan Industries Ltd. here today, uses x-rays and is the latest in German technology. It gives an accurate reading of the purity of the gold in just three minutes without damaging the product. “Consumers can now invest in gold and be sure that they get what they are paying for”, he says. Though already introduced
at Indore, Calcutta, Ahmedabad and Bangalore, Ludhiana is
the first city in Punjab to acquire the karatmeter. |
NEW DELHI (PTI): A city consumer court has penalised auto manufacturer PAL Peugeot Ltd for not delivering PAL Peugeot 309 and Fiat Uno cars to customers in time and also for not refunding the booking amount to them. Hearing petitions filed separately by 167 complainants, the district Consumer Dispute Redressal Forum, Mehrauli, has directed the company to pay a compensation of Rs 2,500 to each of the complainants for mental harassment and another Rs 1,000 towards litigation costs. The court has also directed PAL Peugeot to refund the booking amount of Rs 25,000 with 9 per cent interest from the date of booking till the date of cancellation, along with further interest of 18 per cent after the date of cancellation till the date of payment. The customers had deposited Rs 25,000 with the company in April, 1995, as the booking amount for their cars. But PAL Peugeot failed to deliver the cars on time and also did not refund the booking amount despite cancellation. Trendy launched CHANDIGARH (TNS): LML’s first offering in the scooterette segment, Trendy, with a 60 c.c. engine, automatic transmission, a standard electric-start, an optional stepney, has been launched in Punjab. “Trendy is a product of indigenised non-Piaggio technology,” says Mr R.K. Caprihan, Executive Director, Marketing, LML Limited. Trendy is being initially marketed in Uttar Pradesh, Punjab and Haryana. LML expects to sell 1,00,000 vehicles in the first year of Trendy’s all-India launch. Trendy is available at a price of Rs 17,500 (Chandigarh ex-showroom price.) Ambassador NEW DELHI (PTI): Hindustan Motors (HM), a C.K. Birla group company, is investing Rs 80 crore for the upgradation of the Ambassador, an adaptation of the 1950 Morris Oxford, and will introduce the car in December this year, Executive Director A. Sankara Narayanan has said. The new Ambassador will sport a new body, suspensions and other latest features. However, there will not be any change in the price. Contessa too will get a facelift. The car is equipped with power steering, power windows and central locking. Diesel Gypsy NEW DELHI (UNI): Maruti Udyog Limited is in no hurry to launch the diesel versions of its mid-size car Esteem and Gypsy, says Managing Director R.S.S.L.N. Bhaskarudu. “We are awaiting a good feedback from the market towards the recently-launched diesel Zen before putting the same heart in other models,” Mr Bhaskarudu told UNI. Though the diesel Zen has been well accepted, he said, the company will watch the market for some more time before deciding on the launch schedule for the other two diesel variants. The Zen’s Peugeot-fitted diesel version is selling about 250 to 300 cars every month and the company has kept the output low. Sedan Lancer NEW DELHI (UNI): Hindustan Motors is likely to sign a memorandum of understanding under the new automobile policy with the Directorate General of Foreign Trade (DGFT) for importing certain components of its luxury Sedan Lancer next year. “We are looking at volume sales of the Lancer next year. We may go in for large-scale imports and therefore the need to sign the MoU. We are in regular touch with the DGFT on the matter,” HM Executive Vice-President R. Santhanam told UNI here. The company has achieved
close to 50 per cent localisation level with its Lancer
as the engine and transmission are being produced at a
unit in Indore. Over the next one year, the level is
likely to be increased to 70 per cent. |
Exchange in Gurgaon GURGAON, Oct 27 — An “Industrial sub-contracting exchange,” first of its kind in Haryana, has been set up here. Approved by the Union Ministry of Industries and the Development Commissioner, Small Scale Industries (SSI), the exchange proposes to create and maintain a database of industries for offering unutilised manufacturing capacities to meet requirements of other industrial units. The exchange, which has been set up by the Udyog Vihar Industrial Association (UVIA), Gurgaon, is equipped with computers. Its primary objective is to direct buyers to suppliers. According to Mr AP Jain, General Secretary of the UVIA, the project was granted sanction in July this year and Rs 2.5 lakh was released by the Development Commissioner, SSI, for this project in August. After inter-connecting
industries in Gurgaon, the exchange will soon put itself
on the worldwide web and assist industry to reach out to
potential customers through the Internet. |
Hind Lever net at Rs 223.37 crore MUMBAI, Oct 27 (PTI) — Hindustan Lever Ltd (HLL) reported a net profit of Rs 223.37 crore for the third quarter ended September 30, 1998, and Rs 576.33 crore for the first nine months, as it announced its intention to divest the animal feeds and dairy businesses. The fast moving consumer goods (FMCG) major also disclosed its decision to create one or more joint ventures for the speciality chemicals business, with international know-how and technology providers. “To provide greater focus to categories where it has strength and competence, the company has reviewed its existing portfolio of businesses,” HLL Chairman K B Dadiseth said. “Subject to commercially attractive terms, HLL will seek to divest the animal feeds and dairy businesses,” he said. HLL’s results for the third quarter incorporate the results of the erstwhile Pond’s (India) Ltd (PIL), amalgamated with HLL effective January 1, 1998. The amalgamation has boosted the current year’s figures. HLL export strategy of opening new markets, value-addition and branding has paid off, with export turnover soaring by 60.7 per cent to Rs 1,350 crore in the first nine months of 1998. “An integrated
exports strategy is clearly paying rich dividend and is
helping the company to be resilient against turbulent
trading conditions and competitive against international
players,” HLL’s Exports Director V. Balaraman
said. The export growth has been achieved in the backdrop
of difficult trading conditions in South-East Asia, Japan
and Russia, besides, the consumer goods major graduated
from being a exporting commodities to value-added branded
products, HLL said in a statement here today. HLL’s
tea export business has grown by over 80 per cent during
the first nine months. |
HCL Infosystems net shoots up 520 pc NEW DELHI, Oct 27 (PTI) — HCL Infosystems Ltd has recorded a 520 per cent growth in its net profit in the first quarter of the current fiscal at Rs 12.5 crore. The turnover of the company also grew by 47.4 per cent in the first quarter compared to last year at Rs 207 crore. The corresponding figure
for net profit and turnover for the same period in
1997-98 were Rs 2 crore and Rs 140.4 crore. Ajay
Chowdhry, President and CEO of HCL Infosystems, said the
quarter was marked by business gains spanning hardware,
high-margin services, software exports and enterprise
solution sales. |
Corporation Bank turnover rises CHENNAI, Oct 27 (PTI) — Public sector, Corporation Bank has reported a turnover of Rs 28,732 crore during the first half of 1998-99, compared to Rs 26,098 crore in first half of last year, its Chairman and Managing Director R S Hugar said. The bank’s deposits and advances during September 97 to September 98, totalled Rs 11,559 crore and Rs 4,941 crore, respectively, registering a total business of Rs 16,500 crore, despite economic and market conditions, he told reporters today. Mr Hugar said Corporation
Bank has set an ambitious plan of reaching Rs 18,500
crore in total business during 1998-99, and by next
fiscal year, the business might even cross the Rs 20,000
crore mark. |
Cadbury net spurts MUMBAI, Oct 27 (PTI) — Cadbury India Ltd has reported a net profit of Rs 20.35 crore in the first six months of the fiscal year. This is above the net profit figure of the full year ended on January 3, 1998 at Rs 18.57 crore, the company said in a statement today. Net sales during January
4-October 10, 1998, stood at Rs 323.36 crore, compared to
Rs 354.14 crore for the previous full year. |
‘Credit still far away from
SSIs’ NEW DELHI, Oct 27 — The Minister of State for Industry , Mr Sukhbir Singh Badal, today called for more frequent interaction between the government and the industry. Inaugurating a seminar on the small scale sector organised by the PHDCCI here, Mr Badal said timely and adequate availability of credit was still a problem for the SSIs. “The quantum of working capital at 8 per cent of their annual production is nowhere near the 20 per cent of their projected annual turnover as recommended by the Nayak Committee in 1992”, he said. Referring to the Kapoor
Committee report , the Minister said its recommendations
envisaged special treatment to the smaller among the
small industries, enhancement of composite loans, removal
of procedural delays, sorting out issues relating to
mortgaging of land, allowing access to low cost SIDBI
funds. |
First phase of Panipat refinery commissioned CHANDIGARH, Oct 27 — Panipat Refinery has commissioned its first phase by running the crude distillation unit, vacuum distillation unit, Naphtha splitter unit, viz breaker unit and bitumen blowing unit. Mr Surinder Singh Saini Executive Director of the refinery said that the refinery has taken adequate care in pollution control measures in all the important areas such as water, air, affluent and other wastes by providing environmental management systems. About the rehabilitation measures of Baholi village where the refinery has been constructed, Mr Saini informed that the landloser’s village has been relocated at Sithana. As regard employment of landlosers, he said it may be quite pertinent to mention here that the Panipat Refinery has very sophisticated machinery and equipment which are required to be handled by technically qualified persons. The IOC has agreed to sponsor wards of landlosers families who are matriculates for ITI training and accordingly, IOC has deposited Rs 1 lakh with the local ITI for providing ITI training to 26 wards. However, the response from the eligible candidates have not been forthcoming. The refinery will be fully
operational in the current financial year. |
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| Divali Bumper CHANDIGARH, Oct 27 (TNS) — Mr P.S. Mand, Director, Punjab State Lotteries said that its Maa Lakshmi Divali Bumper-1998 had recorded an all time high sale since the start of lottery bumpers by Punjab State Lotteries. Under the Directorship of Mr P.S. Mand, last year in 1997 also the Divali Bumper of Punjab State had recorded an all time high sale figure. This year in Maa Lakshmi Divali Bumper-1998, Punjab Lotteries has broken its own previous record of 1997. Check JCT bonus Forex rates US$ Rs 42.25/26 The RBI reference rate was Rs 42.26. Gold steady |
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