 |
| Monday, February
5, 2001, Chandigarh, India   
|
Economy bowed, not broken by quake Ind-Swift net profit climbs 44 per
cent
Capital Bank plans to
open more branches |
|
|||||||||||||||||||||||||||||||
|
Banking on Internet
Industry requires softer Budget
Concorde takes off
Q: Starting from April 17, 1985 I used to deposit Rs 1070 with the Peerless General Finance & Investment Co. every year under one of its deposit schemes for 15 years. As per scheme, I received Rs 3000 on May 1, 1990 and Rs 5000 on April 28, 95. On maturity I received Rs 15520 (i.e. Total amount Rs 16600 minus Rs 1080/- against new A/C opened with them for 7 years i.e., Rs 1080/- payable yearly under the scheme).
Book profit in over-priced
scrips ...& newsreaders
undress Left-handers die younger
|
|
Economy bowed, not broken by quake MUMBAI, Feb 4 — The devastating earthquake that took such a terrible toll in human life is unlikely to hit the economy anywhere near as hard, economists say. In fact, if Turkey and Taiwan which had suffered big earthquakes in the past two years are anything to go by, the economy should handily weather the crisis but not without some short-term pain. Already, the big oil, petrochemical, steel and pharmaceutical companies in the country's quake-hit industrial heartland have reported their plants escaped relatively unscathed, easing fears that output could suffer badly. Still, economists cautioned that the task of counting the human and financial costs of rebuilding Gujarat was only just starting. The Gujarat Government doubled its damage estimate on Saturday to more than Rs 200 billion ($4.3 billion), slightly less than 2 percent of national GDP. Even before the quake, growth in the world's second most populous nation was already slowing under a triple whammy of high global oil prices, a weak rupee and gradual easing of import restrictions. After expanding more than 7.5 percent for three straight years in the mid-1990s, the economy slowed to a 6.6 percent pace in 1998/99 and 6.4 percent the following year. This year, private economists expect growth to ease to 6.0 percent or lower. Economists say the quake has ruled out chances of a soft 2001/2002 budget to kickstart the economy. In fact, analysts and industrialists fear the budget due on February 28 will contain measures that could further depress demand. "In all probability, the provisions in the Budget for the rehabilitation of Gujarat will be huge," said Arun Kejriwal, director with independent research firm KRIS. The earthquake may also widen India's gaping fiscal deficit which jumped to 5.6 percent of GDP in fiscal 2000 from 4.5 percent in the previous year. "The big concern is whether the government will impose additional taxes in the coming Budget," said Ved Praskash Chaturvedi, Chief Executive Officer of Cholamandalam Cazenove Asset Management. Further tax increases would most likely fall on corporations, with India's top 1,346 listed companies bearing most of the brunt. Their combined tax bill is already set to rise by $162 million because of the new income tax surcharge. But the government cannily sought to mute the impact of the surcharge on financial markets by saying it would step up its drive to sell off stakes in key state firms and investors bit. "The government seems to be cornered. It will now have to go in for privatisation to raise money," said Nilesh Shah, fund manager with Templeton India. And aid that is flowing in from all corners of the globe should help strengthen the rupee. India has already asked for $1.5 billion in aid from the World Bank and the Asian Development Bank. Money is also flowing from other sources, foreign governments and expatriate Indians. Indians worried about the economy can also take heart from Turkey where economists say the country has witnessed a surprisingly rapid recovery from the quake that struck the prosperous industrial northwest in 1999, killing 17,000 people. Instead, industrial output which shrank 5.2 percent in 1999 was up 3.4 percent year-on-year in the first half of 2000, helped by a reconstruction boom. Fund investors also said they were not exiting India.
— Reuters
|
|
Ind-Swift net profit climbs 44 per
cent CHANDIGARH, Feb 4 — Chandigarh-based Ind-Swift Limited has registered a net profit of Rs 5.84 cr, a growth of 44 per cent, in the first nine months ended December 2000. During the third quarter ended December 2000, Ind-Swift recorded sales of Rs 30.54 cr and a net profit of Rs 2.28 cr, representing a growth of 63 per cent and 47 per cent respectively. Chairman A.K. Jain attributed the company’s performance to its “focus on research, introduction of new products and enhanced marketing.” Anin, the top brand of the company with a growth rate of over 15 per cent, was repositioned during the year resulting in over 60 per cent growth in sales. The Branded Generic Division is also growing at a fast pace. The company has launched two new divisions — Super Speciality and Healthcare — which have contributed 20 new products in the fast growing segments of diabetology, neurology, cardiology, anti-AIDS, anti-viral, etc. The company has planned to increase its marketing operations by inducting 200 field personnel in the next six months, thereby taking the total marketing strength to almost 750.
Medical help for quake victims Ind-Swift has provided medical help to the earthquake victims which includes mobile medical vans, doctors, volunteers, medicines and water. Mobile medical vans of the company are plying 24 hours. These vans, each accompanied by two doctors, eight volunteers from the medical field and containing medicines and food articles, ply in Ahmedabad, Palampur and Bhuj areas. The company has earmarked Rs 5 lakh for this purpose. The group employees are also contributing their one-day’s salary towards the relief fund amounting to almost Rs 2 lakh.
Alternative to Viagra Developed by Super Speciality Division, Vigorvit, a herbal alternative to Sildenafil Citrate (salt used in Viagra), has registered record sales of Rs 1.5 crore in the first six months of its launch. Dr G. Munjal, Joint Managing Director of Ind-Swift Limited, said: “This is a result of the exact placement of the drug in the specific diabetes and hypertension segments where ED cases are maximum.” The total sales of Vigorvit are projected to be Rs 10 crore by the year 2003. The company expects the sales to reach Rs 3.5 crore by the end of the financial year 2000-2001. Capital Bank plans to
open more branches CHANDIGARH, Feb 4
— Capital Local Area Bank Limited, the first such bank in North India operating in the districts of Jalandhar, Hoshiarpur and Kapurthala, has made profit capital in the very first year of its operations. Opening its first branch at Nakodar on January 14, 2000, the bank’s second branch became operational at Samrai on February 12 and the third at Phagwara on April 8, 2000. Last month the bank’s branch at Hoshiarpur started functioning which also provides 24 hour ATM facility like the Phagwara branch. Set up under the patronage of Mr Amarjit Singh Samra, ex-Chairman of Markfed, the bank is managed by a qualified board. Mr A.S. Pooni, former Chief Secretary, Punjab, is the Managing Director and Mr S.S. Samra is the Chairman. Set up after the RBI announced guidelines for local area banks in August, 1996, Capital Bank bridges gaps in credit availability in the rural areas. Chairman Sarvjit Singh Samra told TNS that within a year, the total business of the bank has multiplied to Rs 25 crore. To expand its branch network in the area, the bank will open its branches at Mahilpur and Mehatpur later this month. Two more branches at Kapurthala and Malsian will be opened before March 31, 2001. The bank plans to establish around 25 branches by the end of the third year of its operations. The bank will shortly start new facilities like an ATM network, tele-banking, mobile-net banking and set up information kiosks. The bank’s management and staff have contributed Rs 50,000 for the Gujarat earthquake victims. The bank has waived charges on demand drafts made for the earthquake relief fund. |
|
Banking on Internet CHANDIGARH, Feb 4 — Internet banking is catching on Several account holders now access their accounts through the Internet. The service is offered by ICICI Bank, HDFC Bank, Federal Bank, Bank of Punjab, Induslnd Bank etc. While ICICI Bank has more than 5,000 users registered in Chandigarh, HDFC Bank has above 12,000 users in the region. Internet banking means that one can get account details, including an account statement fund transfer, balance enquiry, details of fixed deposits and loans through the Internent. The user can also pay utility bills, interact with bank officials through a secure mail box facility and request for demand drafts, cheque books etc. Some banks offer demat and share trading facilities. The user can also lock or freeze his account for a certain period. The facility of applying and making payments for mutual funds etc. is also provided by certain banks. Online shopping is another facility where one can make payments through a bank account. “These services provided free of cost and multi-layered security architecture ensures security of transactions”, said Mr Varinder Gulati, Branch Manager, Federal Bank. An account opening form can be downloaded from the website of the bank concerned. When the application is accepted, a password is allotted. Internet transactions are often restricted to one’s bank. In the absence of a common gateway interconnecting the banks, full utility of the Internet remains to be
realised.
Industry requires softer Budget The Prime Minister has indicated that the coming Budget will be tough. Even before the assessment of loss in Gujarat there were talks of levying special surcharges. The earthquake area of Gujarat has to be rehabilitated. There is an ample evidence of a spontaneous outburst of public sympathy and tangible support even as the loss is not fully ascertained. Talk of tough Budget smack of a cynical manipulation of public sympathy to impose additional taxes to meet the concerns of fiscal deficit. The industry has to meet the growing challenge of the WTO. While meeting the disasters we have to keep our industry competitive. It requires softer Budget for the better health of the industry. The Prime Minister has announced Rs 500 crore to Gujarat marked to the National Calamity Contingency Fund (NCCF). The eleventh Finance Commission has recommended that the government should contribute Rs 500 crore and this fund be replenished by levy of surcharge when withdrawals are made. Earlier Rs 434.11 crore were released to 11 states. So the government would use to mop up close to Rs 1000 crore. There is a talk of surcharge on all indirect taxes like Central Excise and service tax. This will hurt the industry adversely. Can we avoid it while meeting the requirement of funds to rehabilitate Gujarat? Our NRIs are very eager to extend help in such disasters. Unfortunately our laws and procedures are a great hurdle. The foreign donations are controlled by Foreign Contribution (Regulation) Act, 1976. This Act applies to all foreign contributions from any foreign source. Section 6 of the Act puts further restrictions on the recipient. Prior permission is required for foreign contributions. Help for the disaster requires promptness. So the Act may be suitably amended. It is quite unfortunate that top companies enjoy lot of exemption and pay very low tax. For instance Larsen and Toubro paid income tax of Rs 40 crore on a pre-tax profit of Rs 367 crore in 1999-2000. This works out to be just 11 per cent. Raymond paid a tax of Rs 4 crore on a pre-tax profit of Rs 67 crore. This rate is just 6 per cent. Multinational companies also enjoy such concession. Software companies pay tax at about 5 per cent rate. Earlier many top companies were zero tax payers. So instead of surcharge on indirect taxes unwanted exemptions to top companies should be diluted instead of making the smaller companies unstable with additional tax burden. Many economists have assessed that if deposits of our country men in foreign countries are brought back the country’s entire debt burden can be discharged. The government should allure such depositors through amnesty schemes so that vast amounts of money are brought back to the country. Government should assess the loss and then proceed in rehabilitation. It should not burden the industry in haste.
|
rc
Concorde takes off British Airways has begun modifying Concorde. The airline will invest more than £ 30 million to ensure its delta — winged aircraft can resume flying safe. Of this £ 17 million will be spent on safety related modifications, and £ 14 million on new seats, cabin interiors and other customer service improvement. Alpha Foxtrot is the first of its seven to be adapted. It is currently in the Concorde hangar at Heathrow, where engineers are preparing it for new linings to its fuel tanks. After the modifications, Alpha Foxtrot, the first British Airways Concorde, will then be used for in-flight providing. Data will be analysed to verify the operational effects of the tank liners, on the aircrafts fuel transfer systems and fuel gauges etc. Provided that no unforeseen issues arise from the investigation into the Paris tragedy, it is expected that the aircraft’s certificate of airworthiness will be returned.
New Company European Aeronautic Defence and Space Company (EADS) and BAE Systems announced that all conditions required for the Airbus deal had been fulfilled. The Airbus Company will be formally set up by the end of February this year. Airbus will be owned 80 per cent by EADS and 20 per cent by BAE Systems. The new company had
proform 1999 consolidated turnover of 15.7 billion and employs some 40,000 people.
Jet Airways Jet Airways has recommenced its scheduled flights to Bagdogra from Delhi, Calcutta and Guwahati from January 5. However, flights to Bagdogra will be limited to three days a week from each of the cities Jet Airways had suspended all its flights to and from Bagdogra following the closure of the Airport for maintenance works. |
ty
Q: Starting from April 17, 1985 I used to deposit Rs 1070 with the Peerless General Finance & Investment Co. every year under one of its deposit schemes for 15 years. As per scheme, I received Rs 3000 on May 1, 1990 and Rs 5000 on April 28, 95. On maturity I received Rs 15520 (i.e. Total amount Rs 16600 minus Rs 1080/- against new A/C opened with them for 7 years i.e., Rs 1080/- payable yearly under the scheme). Kindly let me know as to how I should account for such income in my income-tax return. Santosh Sharma, Panchkula Ans: The amount received in excess of investment made by you in Peerless will be treated as your income and liable to payment on Income-tax. Q: 1. Rs 80,000 can now be invested u/s 88 during the current F/Y 2000-2001. How much out of it could constitute towards LIC, PF, CTD, NSCs and Int. on old NSCs deemed reinvested etc. and how much cold form part of Govt. approved equity shares and mutual funds? 2. Complete amount of Int. on NSCs deemed reinvested (say Rs 13,000) forms part of income. Does the complete said quantum of reinvested Int. qualifies towards investments u/s 88 or is there any ceiling limit on the same? 3. SC on IT of income exceeding Rs 60,000 is payable @ 10%. On income of Rs 1 lac would such SC work out Rs 800 or Rs 900 when no IT rebate u/s 88 has been earned? Ranjit Singh, Jalandhar Ans: Out of the total tax rebate permissible on Rs 80,000 u/s 88 the amount which is eligible for tax rebate in respect of payments for LIC, PF, CTD, NSC, accrued interest on old NSC is to the exent of maximum of Rs 60,000. Please note that the amount of interest on SNCs forms part of the eligible amount for tax rebate u/s 88 within the above-mentioned limit of Rs 60,000. Surcharge on Income-tax is payable in the case of income exceeding Rs 60,000. The total surcharge payable on I.T. on income of Rs 1.00 lakh would be Rs 900. Q: Is it necessary for a Charitable Organisation, which is already Regd. under the Societies Regn. Act, 1860, to get itself registered with the I.T. Commissioner? Is it mandatory for it to file I.T. Returns? What are the slabs of I.T. rates for it? Which income & how much income is exempt from income tax? 2. In case it is registered with I.T. Commissioner which income & how much income would be exempt from Income Tax? 3. What is the purpose of Corpus Fund? How, when & where it can be spent? R.K. Jain, Jagadhri. Ans:
To get registered in Income-tax one must apply for Income-tax registration. The registration is once in life. If the income of the charitable organisation is much below the exemption limit, then it need not file Income-tax return. However, from a practical angle it is suggested it is better to file Income-tax return of charitable organisation even when the net taxable income is much below the exemption limit. The corpus donation received by a charitable trust is exempted in Income-tax and it can be utilised for any purpose as deemed fit by the charity trust. The tax liability on charity trust where the income exceeds Rs 50,000 is just like an individual. The tax rates which are applicable to an individual are equally applicable to the charity trust.
 |
sti
Book profit in over-priced scrips The stock market has weathered the Gujarat earthquake shock but the corporate sector will have to face many harsh realities in the next financial year. A majority of companies may report reduced profitability and at least 25 per cent of the companies are likely to cut down their dividend pay-outs. It is, therefore, suggested that the long-term investors should book profit in such scrips which are over-priced and are not expected to do well during the next financial year. The corporate sector is already heavily taxed and the industry was pleading for some relief in the next Budget. No relief is now likely. Already 2 per cent surcharge on income and corporate taxes has been announced by the Prime Minister but he has also announced that the surcharge is not enough, keeping in view the vast devastation in Gujarat, and so some additional taxes may be announced. The corporate sector may have to face stiff competition during the next financial year due to lifting of quantum restrictions on imports on the consumer and many other category of goods. The high rate of inflation as well as poor agricultural output would add to the cost-side of industrial production. At least 70 per cent of the corporate sector is likely to report lower profits. Cement and steel industries may, however, stage some recovery in view of the larger investments in environment projects and house-building in Gujarat. There is also a threat of global slowdown in the industrial growth. Even in the USA, the threat of economic depression has not been averted despite the recent reduction in interest rates. These factors are bound to affect the Indian economy too. During the last week, the market made a modest recovery, partially due to the report that the interest rates in the USA have been further slashed and partially due to the report that the government has decided to accelerate the disinvestment process in a number of public sector enterprises. The market is likely to move within a narrow range during the current week. I do not expect any fireworks in the pre-Budget week too for no relief is expected in the income and corporate taxes. The post-Budget period is expected to lower the market indices considerably. During the last week, a number of companies announced their third quarter results. BASF India and the Vardhman group companies just maintained their precious results with a moderate rate of growth. Vardhman Spinning, however, reported a lower net profit (Rs 1.04 crore as against Rs 10.1 crore) for the third quarter but this was due to lower quantum of “other income” and the teething troubles in a new unit at Baddi. The company is, however, expected to maintain its dividend at the rate of 42 per cent. Balmer Lawrie has reported a net loss of Rs 208 lakh (as against profit of Rs 105 lakh) during the third quarter. The
company is likely to cut down its rate of dividend. Reliance has improved its net profit by 21 per cent but analysts expect greater competition during the next accounting year. Reliance Petro has done well and some analysts expect maiden dividend. This may or may not come true. Telco is in deep trouble and it will take some time for the company to return to profitability. The pharma companies are doing well. The Indian pharma companies surprisingly are doing much better than multinational pharma companies. |
co
...& newsreaders undress LONDON: At first sight, it might be any one of a hundred bland North American television news programmes. A handsome dame in a business suit displays a set of teeth as faultless as tombstones in a pet crematorium. "I’m Carmen Russo," she announces. This is the international report". The camera pulls back to reveal a background picture of the two Libyans accused of the Lockerbie
bombing. The next item is about people being injured when a Japanese airliner swerved to avoid a mid-air
collision with another plane. ‘The passengers were hurt,’ explains Carmen, ‘when the pilot yanked the controls of the airliner...’ At the word ‘yanked’ she unhitches her skirt and steps demurely out of it to stand attired in bra and G-string. When she reached a story about Zapatista rebels, there was a moment when one wondered feverishly whether she would set fire to her bra. But, alas, she merely removed the garment, discarding it with casual abandon. Welcome to www.nakednews.com, an enterprising Toronto-based start up. It is a news channel in the same way as British `tits and bum’ tabloid The Sunday Sport is a newspaper. Its business model is the original, brain-dead e-business idea that if you can attract enough eyeballs to your site then there must be a way of making money from them. According to the Boston Globe, NakedNews.com, which is owned by a private Canadian company and has been "on air" for more than a year, is also attracting more upmarket advertisers like Sony and Universal Records promoting bands such as the Headstones and the Barenaked Ladies (sic). The most interesting thing about Nakednews, apart from the absurdity of seeing nude ladies awkwardly wondering what to do with their hands, is the way it highlights the irrelevance of the UK’s systems for regulating televised content in a broadband world. There may even now be executives in commercial TV who would be willing to contemplate scantily-clad newsbimbos as a way of boosting ratings, but there is no way they could swing that with the industry regulator. In five years’ time, though, who knows?
— The Observer Left-handers die younger LONDON: They live in a world where nothing seems right. With everything from golf clubs to can openers developed with right-handed people in mind, left-handers have long complained that they face discrimination at every turn. Now the biggest study into the mortality rates of left-handed people has found they are more likely to die young than right-handers. Professor Lee Ellis, of Minot State University in North Dakota, monitored the death rates of 5,743 people in Canada and the United States over nine years. He calculated the average age of death compared with the degree of left or right `handedness’. He found that the average age of death of someone who was generally right-handed was 68.7 years old. For people who were generally left-handed, the average was 65. The possible causes of the difference remain a mystery. One theory holds that because left-handed people live in a world designed for the right-handed, they are more prone to accidents. However, Ellis, who is himself left-handed, believes the explanation lies inside the neurology and physiology of the human body. `It seems that left-handed people and right-handed people are just wired slightly differently,’ he said. Though the field is highly controversial and inconclusive, some scientific research has previously linked lefthandedness with problems with the human immune system, thyroid disorders and difficulties giving birth. All could go some way to explaining a lower life expectancy. One of the strangest aspects of the new research is that it showed that the lower age of death applied only to people who were `generally’ left-handed. People termed as `extremely’ left-handed recorded an average of 67.4 years, which is not statistically different from those who are right-handed. In fact, people who were ambidextrous had the longest lives, notching up an average age of death of 69.7.
— The Observer |
bb
Textile schemes 7-day banking NIC GM |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
