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Sunday,
September 23, 2001, Chandigarh, India
  
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Threat of
war looms over global economy RBI issues
norms on margin trading Subsidy on
LPG, kerosene to stay Bell
Ceramics records 29 pc growth Price war
hitting PC makers hard |
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PCS Aqua
launches car refrigerator
Confusion,
chaos prevail at IGIA
Demand
interest
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Threat of war looms over global economy
Washington/Islamabad, Sept 22 A growing sense of peril enveloped the financial and political worlds after US President George W. Bush threatened on Thursday to take military action if Afghanistan’s ruling Taliban did not give up the Saudi-born bin Laden and shut down extremist groups there. The Central Asian country reacted defiantly to Bush’s ultimatum. “We are not ready to hand over Osama bin Laden without evidence,” Afghanistan’s ambassador to Pakistan, Mullah Abdul Salaam Zaeef, said in Islamabad. He said the government was not bound by an edict from leading Afghan clerics on Thursday declaring Bin Laden should be persuaded to leave the country “whenever possible.” Bush’s war talk won broad support in the United States, according to polls and newspaper editorials, but Wall Street, a few blocks from where two hijacked airliners struck the World Trade Center on September 11, turned thumbs down. A third plane hit the Pentagon and a fourth crashed in rural Pennsylvania. The overall toll of missing and dead is 6,800. Wary investors dumped shares for the fifth straight day as the Dow Jones industrial index of 30 blue chip companies — the crown jewels of the US economy — lost 140 points. For the week, the market fell 14.2 per cent, second only to a 15.5 per cent drop in 1933 during the grim days of the Great Depression. The Nasdaq lost almost 48 points, down 16 per cent for the week. Congress acted late yesterday to aid another victim of the attacks: the airlines. The Senate and House of Representatives approved a $ 15 billion rescue plan for the airline industry. With many Americans terrified of flying, airlines have cut flight schedules by about 20 per cent and announced job cuts of more than 100,000 since the attacks. In a Reuters poll of 25 leading Wall Street brokers, all but one said the economy was now in recession and most did not expect a recovery before the first half of 2002. In Belgium, European Union finance officials met for the first time since the attacks to assess the damage inflicted on their already-slowing economies and the rest of the world. “The tragic events in the US have increased the uncertainties and downside risks for global growth prospects,” they said in a joint statement released after their meeting. But they added: “The EU economy maintains solid fundamentals.”
Reuters
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RBI issues norms on margin trading
Mumbai, September 22 The banks should put in place appropriate systems for monitoring the margin (40 per cent) and if the stockbroker/ client fails to meet the margin calls, the lending bank should liquidate the collateral/shares purchased immediately and adjust the loans, RBI said in its circular to all commercial banks here today. Earlier on September 18, the RBI-SEBI technical committee decided to permit banks to extend finance to stockbrokers for margin trading within the overall ceiling of 5 per cent prescribed for exposure of banks to capital market. The committee has said banks may provide finance to brokers for margin trading in actively trading scrips forming part of the NSE Nifty and the BSE sensex. RBI in its revised guidelines for bank financing of equities and investment in shares has asked the bank boards to come out with necessary safeguards to ensure that no “nexus” develops between the inter-connected stock broking entities/stockbrokers and bank in respect of margin trading. RBI said margin trading should be spread out by a bank among a reasonable number of stockbrokers and stock broking entities. Shares to be purchased should be in dematerialised mode, under pledge to the lending bank. Stockbrokers, availing of margin trading facilities from a bank should be prohibited from lending, directly or indirectly, to their own connected entities, relatives or business associates or those of the promoters/directors of the bank through this facility, the apex bank said. RBI has asked the banks to disclose the total finance extended for margin trading in the notes on account to their balance sheets.
PTI
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Subsidy on LPG, kerosene to stay New Delhi, September 22 “We had preliminary discussions today; the specifics of the dismantling of the APM regime, however, were not discussed”, Union Petroleum Minister, Mr Ram Naik told newspersons here today. The meeting was attended by Union Finance Minister, Mr Yashwant Sinha, Revenue Secretary S. Narayan, Petroleum Secretary V.N. Kaul besides Mr Naik. The Petroleum Minister said that the countdown to the dismantling of the APM has already got underway with the pricing of aviation turbine fuel (ATF) being freed from April this year. “ The same of the remaining four products ( petrol, diesel, kerosene and cooking gas) would be done by the schedule as announced earlier”, he said. The government’s primary concern revolves around the wiping of the oil pool deficit which essentially entails paying oil companies outstanding dues arising out of the subsidisation of petroleum products. It is estimated that the oil pool deficit will cross Rs 14,000 crore by the end of the current financial year. The Petroleum Minister said that even in a post-APM regime kerosene and LPG will continue to be subsidised at the rate of 33.3 per cent and 15 per cent respectively, although the entire subsidy will be borne by the government out of the General Budget. The decision to dismantle the APM by April 2002, was taken by the Union Cabinet in 1998. Mr Naik said that any decision to alter the timeframe will have to be Cabinet decision.
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Bell Ceramics records 29 pc growth Chandigarh, September 22 Bell has a strong presence in the northern region having a unit each in Chandigarh, Delhi, Ghaziabad and Lucknow. Chandigarh unit is taking care of supplies of four states and Chandigarh Union Territory itself through effective and efficient supply chain management system. Bell has managed to post this impressive performance with a carefully focused approach in the retail segment and by clear and distinctive positioning of its wide product range in various segments of the market. The company has decided to have the Bell Tile Mela at 105, Phase 3B2, Mohali, from September 21 to 23.
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Price war hitting PC makers
hard London But not all the problems are due to the downturn in the economy or the bursting of the Internet bubble. Much of the suffering has been caused by Dell Computer, which started a price war to gain market share. According to Gartner Dataquest's figures for this year's second quarter, PC sales slipped by 1.9 per cent — ``the first negative growth rate since 1986''— but Dell increased its shipments from 3.3m to 4m units. As a result, Dell gained 20.2 per cent in market share, while Compaq lost 14.4 per cent, HP lost 8.5 per cent, and IBM lost 6.9 per cent. One result is the HP-Compaq deal, but this is not the only sign of trouble. IBM, which launched the IBM PC 20 years ago and was the largest PC manufacturer until 1994, has already retreated from its losses in the retail PC market to concentrate on direct sales and its profitable ThinkPad notebooks. Gateway, which used to be the biggest direct supplier in the USA, is withdrawing from the UK, Ireland — where it has a factory — south eastern Europe and Africa, and is now talking to employees in France. All this will have an impact on the high street. British buyers who used to be able to choose machines from Compaq, Gateway (which had its own shops), HP and IBM could find their choice of top American brands reduced to one: HPaq. Things could be even worse in the USA, where HP and Compaq have more than 80 per cent of the retail market, according to figures from the research company, NPD Intelect. But it won't all be bad news. Smaller British and European PC manufacturers could benefit from the thrashing Dell is giving its main rivals. Bob Garrett, marketing director at the computer suppliers Andrew Walwyn, managing director of Tiny Computers, says: ``I never wish for people to lose their jobs, but the market is up for grabs, and that is good news. I think there is opportunity at any time and in any climate: it's the people who seize that opportunity who come out on top.'' Like Gateway, Tiny is retrenching. It is closing its stores in the USA and moving manufacturing from China to Scotland. Still, everyone knows that the PC industry's best days have gone. Companies such as Compaq, Dell and HP used to be able to charge $ 2,000 to 3,500 for PCs and still see sales grow by 30-40 per cent a year.
The Guardian |
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PCS Aqua launches car refrigerator Chandigarh, September 22 Mr Chugh said it works with thermo electric chip i.e., electronically, hence no gas or compressor and its CFC free, which is environment friendly. Its unique temperature controlling system can obtain from -5°C to 20°C for cooling and 30°C to 60°C for warming. The “Tropicool” has an adjustable thermostat for temperature control. Mr Gopi Nath Senior Vice-President of the company said the company has tied up with U-Long Ltd, Taiwan, and an ISO 9002 company for the new range of car refrigerators (car cooler and warmer) for the Indian market in the name and style of “Tropicool”. The product has been supplied worldwide by U-Long and as OE for Ford, Toyota, Mitsubishi, Mazda, etc. Tropicool comes in two models with a capacity of 12 litres each which can be used in cars, ambulance, trucks, hospitals, offices etc said Col G.S. Jeryal of Balaji International. It will cost between Rs 12,000 and Rs 12900 in Chandigarh.
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by R.N. Lakhotia Commuted pension Q: With regards I have the following queries: — It was written under one question that “while computing your taxable salary income the commuted value of pension will be included in the gross salary amount”. — However, uncommuted pension is taxable as salary under Section 15 in the hands of government employee as well as non-Government employees. — However, commuted pension received by an employee of the Central Government, State Government, Local Authority of Statutory Corporation is wholly exempt from tax under Section 10(1)(A) (i). I have been recently retired from the bank. Please advise me that. — Whether I should opt for commutation of pension. — Whether commuted portion of pension would be included in the yearly computation of the “Income under the head salaries” or only the uncommuted portion i.e. the monthly pension actually received would be included in the yearly computation of Income under the head salaries. — Sushil Singal, Panchkula. Ans: The commuted value of the pension is exempted as per Section 10(10A) (ii) of the Income-tax Act, 1961. However, if the commuted value of the pension is in excess of the amount as mentioned in the above section, the same will be included in the gross salary income of the employee. The un-commuted pension continues to be assessed as salary income of all types of employees. The commuted pension received by the employees of Central Government or State Government or Local Authority, etc. is fully exempt under income-tax. It is recommended that you should ask for commutation of the pension. The commuted portion of the pension is not required to be added under the computation of income from salaries. Only the uncommuted portion i.e. monthly pension received will be included under the head ‘Salary’.
Disability Q: I am semi-government employee. I have gone physically handicapped and my disability is permanent in nature. Kindly inform under which Section I can apply for tax rebate and the amount of enhanced exemption rebate limit. Secondly, please inform whether is it necessary to submit medical certificate issued from Civil Surgeon to the income tax officer for getting rebate. — Ramesh Kapoor Ans: For permanent physical disability a deduction in terms of Section 80U of the Income-tax Act, 1961 is granted for an amount of Rs 40,000 while computing the total income of an individual. The benefit of this tax deduction can be given by the employer. In the first phase please go through Rule 11D of the Income-tax Rule, to find out whether a permanent physical disability which you are suffering from the duly covered in the said rule or not. Only when your physical disability comes within the purview of the said rule 11D, then you will be eligible for the above mentioned deduction. To claim tax deduction in view of permanent physical disability you should obtain a certificate from an Oculist or a physician or Surgeon or Psychiatrist working in Government Hospital and submit the same in the income-tax return. |
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by K. R. Wadhwaney Confusion, chaos prevail at IGIA Confusion, occasionally chaos, is witnessed at the Indira Gandhi International Airport (IGIA) where international passengers have to jostle around to avail of their flights even after reporting four hours in advance. Three-tier security check has been introduced for international passengers. They frisked and their belongings checked at the entrance; they undergo another check after immigration and customs clearance. They are subjected to third check before getting into the aircraft. Even after x-ray examination of the checked-in baggage, it is manually checked and hand-bags examined. All this causes irritation but what causes concern to passengers when they are stoutly and vulgarly frisked by crude security inspectors. There have been occasions when passengers have made complaints. But their protests are over looked. In the name of security of the country and safety of passengers anything and every thing can be explained away. All this vex scenario has surfaced because the citadel of the ‘Super International Aviation Cop’, known as America, has been breached. The reputation of the Federal Aviation Administration (FAA) has been tarnished. Airports in USA have become as vulnerable as any where else. To hijack an aircraft is one thing but to take charge of three-four aircraft on one morning is shocking. The FAA will not be the authority that it has been for decades. It is FAA’s laxity that has left America (New York and Washington in particular) wounded and thousand people killed. The security measures are indeed essential. They may succeed in reducing incidences of hijackings. But a few fanatics, who are prepared to sacrifice their lives, can play havoc, as done by a team of terrorists on Tuesday, September 11. America, with all sophisticated gadgets and wherewithal, has yet to identify who the criminals were. The Ministry of Civil Aviation has done well in cancelling 250 airport access passes issued to the personnel of the airlines that have stopped operating ex-India. There are, however, many more touts and others whose passes should be confiscated. Cancelling of passes is one thing but guarding airports is quite another. There is duplicity of authority existing at airports. Even at the IGIA, which should always be in a state of high alert, there are some other security agencies in addition to the Bureau of Civil Aviation security. Airports Authority of India officials do monitor the functioning of all these agencies but there is no trouble-shooter who can coordinate the functions of diverse security agencies.
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by Praful R. Desai Demand interest Q: Whether Recovery Officer under the EPF Act is competent to demand interest on amount specified in the certificate? Ans: In Indian Drilling and Mining (Private) Ltd v Regional Provident Fund Commissioner (2001-II-LLJ-450) Calcutta H.C. was opining thus: In this writ application before the H.C., an employer has challenged an order dated 20-9-2000 passed by the Recovery Officer demanding amount of interest and costs under the provision of S.7-Q of the Employees’ Provident Fund Act, in addition to the amount mentioned in the certificate. Therefore, the only question that fell for determination in this writ application was whether a Recovery Officer is vested with the authority under the aforesaid Act to impose interest on the amount mentioned in the certificate notwithstanding the fact that such interest has not been included in the certificate. The petitioner submits that the position of the Recovery Officer under the aforesaid Act is exactly that of an executing Court and as such, unless the authority under S.7-A of the Act has included the amount of interest in the certificate, the Recovery Officer cannot on his own add to the certificate any such amount. The H.C. held therefore, that the aforesaid provision makes it clear that the Recovery Officer can recover only the amount specified in the certificate. The provision contained in S.7-Q of the Act merely enables the authorised Officer U/s 7-A to impose interest, but if such interest is not included in the certificate, it is beyond the competence of the Recovery Officer to demand such interest. In that way, the H.C. set aside the order impugned as the same is without jurisdiction. The writ application in that way was allowed. |
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Miracle cure Indian pharma companies seem to have become the miracle cure for beleaguered investors whose portfolio values started eroding by the minute ever since the great American disaster of September 11. Fund managers seem to be in a tearing rush to pick up these stocks as an antidote to the poisonous effect of the TMT stocks on their portfolios.
Unkind cut or hike? The grapevine has it that the Government might consider hiking taxes and fuel prices under the garb of the ongoing crisis. Now, that would be a most unkind cut for the public at large which is still struggling to come to terms with the harsh recessionary winds.
Star gazing The grapevine has it that the Pune based astrologer with the penchant for predicting stock price and index movements is still sticking to his prediction that the markets will swing upwards post-Divali. Well, if wishes were
horses... |
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Jewellery show Bank of Punjab SBI adalat Lucky coupon |
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