Monday, April 26, 1999
today's calendar
|
B U S I N E S S | Monday, April 26, 1999 |
| weather n
spotlight today's calendar |
|
Tax sops for JK traders
|
 |
Canara Bank eyes Amitabh
house to recover dues No new Maruti models this year |
|
Probe into dumping by
Japan Hyderabad: IT destination Why women shun unionism Builders bank suggested
|
||||||
 |
|||||||
|
JAMMU, April 25 (UNI) — The Jammu and Kashmir Government has announced a major package of tax concessions on various public utility items and amnesty package for payment of electricity, sales tax and passenger tax arrears. As per the package, the sales tax on edible oil has been reduced from 8 per cent to 4 per cent, on footwear from 12 per cent to 8 per cent and on readymade garments from 8 per cent to 4 per cent. An official spokesman told UNI here today that the decision to this effect was taken at a high level meeting of senior officers of the state government and representatives of the Chamber of Commerce and Industries of Jammu and Kashmir and the Kashmir Traders and Manufacturers Federation. The meeting held under the chairmanship of the Works Minister, Mr Mohiuddin Shah was also attended by the Finance Minister Mr Mohammad Shafi. It was also decided to reduce sales tax on automobiles of all kinds from 8 per cent to 4 per cent. However this decision would be subjected to review at the next meeting of the Finance Ministers of the northern states and in case all states adopt uniform rates the same would be applied in Jammu and Kashmir also. The meeting also decided to extend the period of amnesty for clearing electricity arrears by the consumers by one year more, he said. The government also decided to extend the package of amnesty for payment of sales tax on the condition that the tax assessed admitted for years 1997-98 and 1998-99 will be paid in full up to July 31, 1999. The arrears of sales tax prior to March, 1997, will be payable in 30 equal quarterly instalments beginning April, 1, 1999. The payment of first quarter will be due before July, 31, 1999. The second quarter payment will be made up to September 30, 1999. In case the dealer, failing under amnesty, make a default in one single instalment of arrears, the same will be payable in full along with the instalment of the next quarter. Any second default will result in withdrawal of amnesty and full amount of tax along with interest and penalty will become payable. A similar amnesty will be given to the transporters for payment of passenger tax arrears. Despite acute financial crisis, Mr Shah said the government had shown magnanimity in reducing the taxes on some items of common use to provide relief to the people, he said, after feeling the problems of trading community. The government lost no time in extending amnesty for payment of sales tax, electricity and passenger tax arrears and hoped the people would respond with social commitment. The Finance Minister
said government would review the tax structure
periodically and every effort would be made to
rationalise it in consonance with the neighbouring states
to protect traders and business community interests. |
Canara Bank eyes Amitabh house to recover dues MUMBAI, April 25 (PTI) — The fortunes of former mega star Amitabh Bachchan are hinging on a sordid legal battle in which he stands in danger of being dispossessed of even his house. The next hearing on the petition for attachment of Bachchan’s house, Pratiksha, by Canara Bank will come up in the city high court tomorrow. While an out-of-court settlement is likely in the ongoing case of Canara Bank versus AB Corp Ltd (ABCL), the Bachchan-owned entertainment company, this could hardly qualify as the happy ending which he would be looking for. The ABCL, plagued with debts amounting to Rs 80 crore, is in the grip of a severe cash crunch, made worse by the fact that Bachchan’s comeback vehicles, “Mrityudaata” and “Lal Badshah” both bombed at the box office. “Tere Mere Sapne” produced by the ABCL did moderate business, while “Major Saab” for which the company had taken up distribution rights, was not the success they would have liked it to be. In a recent interview, Bachchan had said his son Abhishek was in charge of the company now. A major reason for the bank to make its move is that once the company is registered by the Board for Financial and Industrial Reconstruction (BIFR) as a sick company, it would be virtually impossible to make it pay up. Incidentally, the promoters had referred it to the BIFR on March 22, four days after a court receiver had been appointed to take possession of the company’s assets. Registering a company under Section 3(1)(O) of the Sick Industrial Companies (Special Provisions) Act, 1985 protects it from immediately paying its dues to its creditors while it also can avail of tax exemption and moratoriums on interest payments. According to persons who have been closely tracking the developments, attaching Bachchan’s residence, Pratiksha in Juhu cannot be of use as it has already been mortgaged to the Sahara Group, which was admitted by the counsel for the ABCL to the HC in the April 16 hearing. The residence has been valued at over Rs 10 crore, according to the current market prices. The bank is also seeking to attach two flats of the filmstar, which have been mortgaged with it as collateral, the resale value of the property has been estimated at around Rs 80 lakh. While the ABCL had been
facing the customary ups and downs in its activities in
terms of film production and distribution, what appears
to have tipped the scale was the Miss World pageant in
1996. |
No new Maruti models this year NEW DELHI, April 25 (UNI) — The Board of Directors of Maruti Udyog Limited (MUL) has decided not to roll out any new model in the 1999-2000 fiscal even as the company is readying three new vehicles, including variants of Baleno and Wagon-R, to be launched beginning the first quarter of the next financial year. Besides, the engine upgrades of the existing vehicles would be introduced from April 2000 in keeping with the emission norms, company sources told UNI here. Despite the three new launches planned for the next year, the company board has decided not to phase out the existing line-up, “as they are among the best in their price segment and it would be difficult to oust them’’. Suzuki Motor Corporation of Japan, which controls 50 per cent stake in MUL has agreed to provide technology for all the three models. “In fact, work has already started on developing these models, which would be creating new market segments.’’ Though the company has
shortlisted Baleno and Wagon-R to be among the three new
cars for the Indian market, it is still working towards
finalising the third car, which is most likely to be a
new small car, the sources added. |
|
NEW DELHI, April 25 (PTI) — The government has initiated an investigation into dumping of purified tetraphthalic acid (PTA) imports from Japan, Commerce Ministry sources said. The probe has been initiated on a complaint filed by Reliance Industries, which alleged that imports of PTA from Japan had caused “material injury” to the domestic industry. In its petition, Reliance said the imports from Japan at 42,000 tonnes in April-September, 1998 exceeded the total PTA import from all other countries put together at 30,000 tonnes. PTA imports from Japan
had surged three times to 78,000 tonnes in 1997-98 from
25,000 tonnes in 1996-97 compared to a drastic decline in
imports from other countries. |
|
HYDERABAD,April 25 (PTI) — Andhra Pradesh is fast emerging as one of the most favoured information technology (IT) destinations in the world as reflected by the phenomenal growth in software exports which are likely to cross Rs 1,200 crore mark this year. Software units of the state registered more than 100 per cent growth in exports for the eighth successive year during 1998-99 and future trends were also very encouraging, a spokesman of the Software Technology Parks of India (STPI), Hyderabad, told PTI here. A series of pro-active IT policies initiated by the State Government, including setting up of of hi-tec (Hyderabad information technology and engineering consultancy) city and Indian Institute of Information Technology (IIIT), has spurred the growth of software industry, he said. From a mere seven units in 1992 when STPI was established here, the industry has notched up spectacular growth with as many as 194 software units being registered by the end of March last. The software exports, mostly to the USA, Canada, Japan, the Netherlands and other European countries, had grown from a mere Rs 2 lakh in 1992 to Rs 574.12 crore last year and are likely to touch Rs 4,500 crore by 2004. The remarkable feature was that as many as 82 units were registered during 1998-99 alone and the value of software exports through datacom facilities had gone up by 80 per cent during the year and was likely to grow further with increased bandwidths and global reach. With renowned Indian and multinational companies joining the STPI scheme and many more corporate bodies, NRIs evincing keen interest to establish export houses in the city, the investments were expected to grow many fold in future. Over 77 per cent of the total exports were effected through the datacom facilities and international satellite links were presently available to several countries including the USA, the Netherlands, Belgium and Singapore. With world class infrastructure, the city based companies have developed expertise in Y2K solutions, network management client server applications, ERP and supply chain management, multimedia-related software development, euro conversion, internet-based applications, telecommunications, manufacturing, financial and banking and insurance services. Among the top 10
exporters from the State, Satyam Computers, with Rs
125.15 crore worth exports, heads the list followed by
Wipro Limited with Rs 110.35 crore, Baan Info Systems
India Limited (Rs 48.63 crore), Visualsoft (Rs 0.93
crores) and DE Shaw India Limited (Rs 28.81 crore). |
|
MUMBAI, April 25 (PTI) — The daily grind of life, lack of strong family support system, lopsided gender bias and secondary position of female workers has resulted in women displaying very little inclination towards participating in the trade union activities. While the changing work pattern and economic conditions altered everyday lives of workers, including changes in rigid work divisions, these were more “coping mechanisms” rather than attitudinal changes, according to a paper published in “The women workers rights in India: issues and strategies”. Under a project sponsored by the ILO. Though men came forward to “lend a helping hand” in household chores, the major chunk of domestic work is still tackled by women, resulting in very little time to spare for union activities, it said. Participating in the union activities was still perceived as “unfeminine” and the fear of being labelled “bad” often prevented women from coming forward for union work. The practice of transferring active members of the union to other places as punishment also dissuaded women often from joining unions. Transfers often meant setting up of a new family support system again and coping with new problems at the new place of work. Discrimination in wages often relegated women to the position of a supplementary bread earner thus depriving them of the position of a “real worker” and minimising their role in trade union activities. The rigid nature of union elections further acted as a deterrent for women, the paper said adding women are found to have less access to finances and information compared to men. Industries employing women in large numbers have declined in recent years adversely affecting the number of women in unions. Moreover, most women
work in informal or unorganised sector, which falls
outside the purview of legislation. |
|
NEW DELHI, April 25 (PTI) — In the absence of any financial institutions extending credit to builders, there is an urgent need to create an ‘exclusive builders bank’ to facilitate easy flow of long-term credit to builders, an apex chamber has said. Stating that the National Housing Bank (NHB) was not lending money to builders, PHDCCI has said with the Budget offering a lot of incentive to the housing sector, it was imperative on the part of the government to ensure easy access of funds for builders. It said the HUDCO was
very restrictive in lending to builders and to the banks,
building industry was not a priority sector. |
JCT I deposited Rs 10,000 with JCT Ltd, New Delhi vide FD Receipt No. JIV 0003 109105 dated 11.9.97 for one year and its maturity date was 11.9.98. I forwarded the original receipt four weeks in advance on 11.9.98 for repayment. Till todate I have not received the money back despite reminders. Jeevan Asha
Dhawan I deposited Rs 10,000 with JCT Ltd, New Delhi vide FD receipt No. ANS 0034/104898 dated 10.2.97 for two years and its maturity date was 31.1.99. I forwarded the original receipt in advance on 21.1.99 for repayment. Till todate I have not received the money back despite reminders. Anshu Mittal Kuber MF I have not received the payment of FDR No. KMBL-93928, 27,29 and 30 matured on 14.1.99 by Kuber Mutual Benefits Ltd, -32 Greater Kailash, Part-I , New Delhi. I submitted the FDR duly endorsed for redemption well in time. Anil Kumar
Sharma UTI US-64 I have not received the dividend of US-64 due on June 30,’98 for certificates No. 400 970 200 5926 28 and 29, 47311317800 and 400950140 234012. Reshma Devi |
Market ignores good results DURING the last fortnight, many companies have announced good results but the market has ignored them. Political stalemate continues to depress the market. The blue-chip equities seem to have suffered more than the rest. Glaxo has come down from Rs 805 to Rs 706, Novarties from Rs 915 to Rs 744, Pfizer from Rs 1291 to Rs 1010. Satyam Computer, in spite of the announcement of a bonus issue in the ratio of 1 for 1 held, has moved down from Rs 1330 to Rs 1150. Infosys has, however, been able to maintain its market price, but its annual results were very good and its net profit doubled. The market also ignored the news that the Budget proposals have now been approved by both the Lok Sabha and the Rajya Sabha, thanks to the initiative of the President which resulted in all political parties approving the BJP-led government’s Budget in toto without any discussion. The Reserve Bank’s cut in the Cash Reserve Ratio (CRR) by 0.5 per cent went almost unnoticed by the market. Political uncertainty is the main factor in keeping the market depressed. The Congress has also failed to form a minority government with support from its allies from the outside. There is also little possibility of the allies forming a government without the Congress. There is some remote chance of the BJP-led government being formed again, for at least this grouping has been able to maintain its cohesiveness better than the Congress-led groups of opposition parties. So far the corporate results are concerned, those announced during the last fortnight are by and far good. Hindustan Lever’s net profit during the first quarter is up by 24 per cent. Rhone-Poulenc’s net profit for the accounting year 1998-99 is up by 134 per cent (from Rs 12.91 crore to Rs 34.71 crore). The company has declared a dividend of Rs 12.50 per share. Exide’s net profit for 1998-99 is higher by 70.6 per cent (from Rs 23.36 crore to Rs 39.86 crore). Sterlite Industries has announced a 20 per cent rise in net profit for the third quarter ended March 31, 1999. Philips India’s has announced a net profit of Rs 4.4 crore for the first quarter ended March 31, 1999 as against a loss of Rs 10.6 crore a year earlier. TVS Electronic’s net profit for the first quarter (ended March 31, 1999) is Rs 1.54 crore as against the total net profit of Rs 1.09 crore for the nine months period, ended December 31, 1998. The company is now on its way up and no profit taking is recommended at the present market price of Rs 65 per share. HDFC Bank and ICICI Bank have also announced improved results. In general, the FMCG equities like Hindustan Lever, Cadbury, Britannia and Nestle have maintained their market prices during the last fortnight. Bata and Hindustan Lever Chemicals have, however, not shown good results. Astra IDL’s net profit has also dipped by 9.73 per cent for the accounting year ended March 31, 1999. ISPL’s fourth quarter results are also lower. The market is unlikely to improve unless the present political stalemate is resolved. In case the Congress-led or alternatively BJP-led government is formed, the market is likely to move up. In case a Left-party dominated government is formed, the market will plunge down. Both the Congress and the BJP are jockeying for the role of a “caretaker” government in case the present Lok Sabha is dissolved. The best advice for the
long-term investor is to mark time and not sell off
blue-chip equities in a huff. Some blue-chip equities may
even be picked up to keep and wait for the good time to
return. One good company which appears to have a bright
future is Global Tele. It has good fundamentals and
prospects. But I am recommending it for its new
connections with the international giants like GEC
Information Service and Microsoft. The latter has
certified Global Tele as “competent centre” on
Internet and e-commerce business the only Indian company
to be so designated. Microsoft has committed itself to
support and provide appropriate technologies (including
core and upcoming technologies) on an ongoing basis to
meet the objectives jointly decided by them. |
New Air carrier flying low to woo passengers NEW YORK-based New Air carrier has decided to have low fares to woo passengers. The airline’s think-tank holds the view that profit is possible only when maximum seats are occupied. It has decided to go in for all new airbus industry fleet of A-320 to fly with as low fares as possible. The airlines will initially operate seven leased A-320s in January 2000. Then the new aircraft will be pushed into service. Airbus Industry’s President (India) Kiran Rao has said that the A-320 family has been going from strength to strength. He feels that this aircraft will fill a void existing in India. Tentatively called “New Air”, the airline will soon announce its identity. Managed by proven and experienced officials, it will operate its flights from John Kennedy airport. The fares will be lower than offered by other airlines. Seats snapped British Airways claims that seats are being snapped up in millennium rush as passengers seen to be eager to celebrate the year 2000 in style. According to the airline’s hand-out, about half a million seats have been booked on the airline’s jets for the period between Christmas and New Year. This is about 150 per cent more than the sales of last year. The routes, like Johannesburg and Barodos are more in demand than others. BA also joined the Khalsa tercentenary celebrations. The donation of Rs 300 on every ticket sold in Punjab will continue for three months until July 21. The collections through this donation are expected to be sizeable. In Jalandhar, Ludhiana and Chandigarh, the airline provided facility to every one to make a three-time telephone call on April 13 to friends and relations in the UK, the USA and Canada to wish them happy Baisakhi. Another facilities Indian Airlines has provided additional 10 kg of baggage to passengers returning home on domestic and international routes. The facility will be available to passengers flying even in economy class. The facility is not valid to passengers flying on tiny Dornier aircraft in which an additional baggage is not possible. The validity of
excursion fares has also been extended until May 15. |
Infosys Tech On the day, the shares of Infosys Technologies got listed on the Nasdag Exchange in USA, its price at the Indian bourses went through the roof. However, the euphoria was short-lived and once it became clear that the discounting being accorded to this scrip was too high, its price plummeted on the Nasdag. The Indian market too soon took the cue, and its price has been plummeting ever since. But are we close to its price bottom now? UTI on HLL Board UTI has apparently expressed a desire to have one of its nominees on the board of HLL. The grapevine has it that this proposal has been uniformly rejected by HLLs management, fearing that it might trigger off demands from other claimants like the GIC etc. There is also a school of thought that UTI would be better off trying to place its own disorganised house in order. Cipla sellout The grapevine is agog with rumours that the management of Cipla is not averse to selling off its stake in the company to a MNC provided the offer price is right? Could this be possible? Watch this space for any further developments. Pentafour Software The grapevine has it that Pentafour Software is on the verge of bagging a large Hollywood contract, the proceeds from which should exponentially enhance its bottomline and earnings. Yet another southside software success story. Premier Auto It is no secret that
this numero uno in the auto segment in the bad old days
is now down and out for the count. But wait a minute and
hang on if you are a shareholder. The grapevine has it
that a takeover bid could be in the offing. |
It’s a dangerous drive with seat belts LAST autumn, the American Automobile Association complained that Hollywood wasn’t setting a good enough example as far as the wearing of seat belts was concerned. Too many movies advocate the James Bond school of crash survival, it said, while in the real world, seat belts save lives. So it might come as something of a shock to the AAA to learn that habitual seat belt-wearers tend to drive more dangerously than their unbelted counterparts. That, at least, is the conclusion of Dr Tony Reinhardt-Rutland of the University of Ulster, in Northern Ireland, who presented his findings at the British Psychological Society’s annual conference in Belfast at the weekend. And the reason, he says, is that seat belts eradicate an effect known as “looming”. Looming is what happens to you when, unrestrained by a belt, you slam your foot on the brake to avoid hitting something. You are thrown forward and the world — the dashboard, the windscreen, and the scene beyond it — rushes up to meet you. That visual expansion is frightening and, not surprisingly, acts as an incentive to drive more cautiously. “Looming is a primitive response and creatures, including man, find it very uncomfortable,” says Dr Reinhardt-Rutland. “It’s something that will have an effect on their behaviour. They will learn from it.” Consequently, in the absence of looming, people tend to drive less cautiously: they don’t leave as much space behind the car in front, they overtake in trickier conditions. And that, says Reinhardt-Rutland, is why seat belts save fewer lives than they should. — The Guardian E- commerce India is set to emerge as the next stop after the USA and Europe for global software vendors vying for a share of the electronic commerce (e-commerce) business worldwide, which is expected to grow into a trillion dollar industry by the end of the century. Software majors, Microsoft, Oracle, IBM, Intel and Hewlett Packard have all chalked out India-specific business plans to tap this huge potential. “E-commerce is the new buzzword in business. We expect to generate one billion dollars every month and hope the major chunk will come from India,” says Rob Chapman, Product Line Manager of Intel’s Network Systems. IBM has already taken a leadership position in this business in the country with a tie-up with the Tatas (Tata-IBM). — PTI Farm trade The European Union has begun drafting laws to implement a hard-fought farm accord designed to boost world agricultural trade amidst doubts on whether the proposed treaty would succeed in meeting the desired goals. The move elicited adverse comments from agricultural experts who said the 15-member EU should spare itself the ambitious effort as the accord would fall far short of its stated goals and would only complicate matters. Economists at the Centre for European Agricultural Studies and the centre for European policy studies said the plan would heighten global farm trade problems, complicate EU expansion and necessitate a complete overhaul of all laws. The accord was reached last month at a special EU summit in Berlin after protracted negotiations lasting over one year as part of EU’s overall budgetary reforms Under the accord, the EU will slash cereal, beef and dairy prices by 20 per cent during the five-year period and by way of compensation raise direct cereal and beef subsidies and introduce direct dairy subsidies. — PTI BT, AT & T Japan Telecom Co said on Sunday it would sell 15 per cent stakes to British Telecommunications Plc (BT) and AT&T Corp for $1.85 billion in the first large investment by foreign majors in the country’s deregulating telecoms sector. Under the partnership
agreement announced by Japan Telecom, the two companies
will pay a total of 220 billion yen ($ 1.85 billion) for
the stakes, which will be acquired through a new share
issue. — PTI |
 |
 |
| Nation
| Punjab | Haryana | Himachal Pradesh | Jammu & Kashmir | | Chandigarh | Editorial | Sport | | Mailbag | Spotlight | World | 50 years of Independence | Weather | | Search | Subscribe | Archive | Suggestion | Home | E-mail | |
