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Sunday,
December 22,
2002, Chandigarh, India  
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Simplify Saral form, says industry
RBI’s relaxations for forex markets
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Pharma industry set for major jump
Garment exports record 7 pc growth
Fiat sells stake in GM for $ 1.16 billion
AirTel launches ‘Bid N Buy’
GlaxoSmithKline to pay 37 pc
Global summit on SMEs concludes
Hold TVS Motor shares
Offer of same pay
Now buy aircraft without delay
Sunil Mittal gets award
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Simplify Saral form, says industry New Delhi, December 21 In the pre-budget recommendations to the government , industry has stated that world over countries are providing incentives to promote savings, investments and development of their backward areas. The success of tax reforms would greatly depend on simultaneous studies made in regard to changes introduced to see whether the same are as per the conceived perspectives. Emphasising on the simplification of the Income Tax ‘Saral’ form, industry representatives have recommended that it should be modified and made really simple so that the assesses can fill it without the help of any tax advocate or chartered accountant, feel industry experts. Advocating the need for stability in tax laws, industry experts, in their recommendations for the forthcoming Budget, have stated that the government should frame a Long Term Fiscal Policy (LTFP) for five years. Stating that the taxation structure should help the nation to move forward with the reforms, the pre-budget memorandum by the Federation of Indian Chambers of Commerce and Industry recommends that the policy must support rapid expansion of productive employment in the country. “It is important to look at the structure of taxes and also assess the direction in which we should move forward with reforms to further the fundamental objectives of growth and social justice”. Regarding the economic policy, experts say that the growth, maturity and complexity of our economy calls for a much more integrated approach to economic policy and its management. “Effective co-ordination of different dimensions of economic policy - Fiscal Policy, Monetary Policy, Industrial Policy and Trade Policy will be facilitated by a long term perspective to policy making.” Pointing out the urgent need to widen the tax base, the memorandum says that the step would correct imbalance in tax collections on one hand and on the other, help plough back sufficient resources. “Commercial operations under agriculture should be brought under the purview of tax net”, industry has recommended highlighting the need to tax the urban rich. Other recommendations relating to direct taxes include efficient and effective tax administration and a policy decision on the issue whether a large number of changes should be brought in the Acts through Finance Acts or through the Amendment Acts after examination by Department related Standing Committee. |
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RBI’s relaxations for forex markets Mumbai, December 21 The corporates will also have full freedom to freely rebook cancelled contracts relating to exposures falling due within one year without any limit as against the earlier cap of $ 100 million dollars per financial year, the RBI said in a statement here. Taking into account the stable market conditions, the RBI said banks would now have the freedom to offer hedging facility to foreign direct investments and will be able to freely invest in overseas money and debt market instruments. RBI said foreign banks would not be required to spread their requirement of hedging their tier-I capital over six months. All these facilities would be available upto March 31, 2003, subject to review, it added. On the foreign-currency rupee swaps, the RBI pointed out that controls were being eased to facilitate customers to hedge their foreign currency liabilities. Banks were earlier permitted to access the market up to $ 50 million only while offering this product to customers. Referring to booking of forward contracts, the apex bank said exporters and importers were now permitted to book forward contract upto an average of past three years turnover, without documentary evidence, subject to the condition that outstanding contracts shall not exceed 25 per cent of eligible limit and a cap of USD 100 million. The RBI said corporates, to avail the facility of rebooking cancelled contracts, would now be required to furnish details of unhedged exposure to the banks. Earlier, this facility was available subject to a cap of $ 100 million per financial year. Banks would also have freedom to offer forward cover facility to non-resident entities in respect of amounts deployed in India after 1993 by way of foreign direct investments. Earlier, such hedging required prior approval of RBI on a case to case basis. Banks would be permitted to invest in the overseas money market or debt instruments any amount as decided by its management as against the earlier stipulation investing only upto 50 per cent of their unimpaired Tier-I capital or $ 25 million (whichever is higher) in the overseas market, the apex bank added. PTI |
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Pharma industry set for major jump Chandigarh, December 21 Presenting a paper ‘Forging New Alliances and Parternships,’ at the two day ‘Higher Education Summit’ jointly organised by the CII and National Assessment and Accreditation Council (NAAC), he claimed that the Indian pharmaceutical industry was set for a major jump in the next few years. He said, ‘‘At present Rs 25,000 crore worth Indian industry is growing at a rate of 10 to12 per cent per annum. However, the total world market is above $ 410 billion, and is growing at a steady rate. The companies in the region like Ranbaxy have registered an impressive growth, however, the potential still remain untapped in the international market.’’ Mr Chawla called upon the regional universities to identify niche areas of expertise relevant to the industry. At present, about 15,000 students were coming out of over 600 institutes. However, there was a need to increase the flow of quality manpower for the industry. About 300 companies in the organised sector in India were producing about 60 per cent share of the market. The market of generic drugs, worth $ 40 billion was growing at 12-15 per cent rate. Due to cheap labour and inherent advantages, the domestic companies could capture the market. Big players like Ranbaxy, Cipla, Dr Reddy's lab, Sun Pharma, wockhardt and Lupin were investing a lot of money into the generic market. Commenting upon the growing market of herbal products, Mr Chawla said, use of herbal extracts in treatment of certain diseases like viral infections, cancer and multi-drug resistance was gaining
acceptance. However, India's share in this market was barely 3 per cent, against 30 per cent share of the China. |
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Garment exports record 7 pc growth
New Delhi, December 21 In quantity terms, exports of garments to restricted countries touched 83.6 million pieces compared to 82 million pieces in the corresponding period a year earlier, it
said. Cummulatively, exports during the first eleven months of the calendar year 2002 registered an increase of 9.35 per cent in quantity terms and a growth of 7.81 per cent in terms of value over the previous year. In terms of the fiscal year 2002-03, exports to quota countries during the April-November period grew by 11.01 per cent in quantity terms to 704.9 million pieces while registering a growth of 14.24 per cent in value terms to $ 2.64 billion. The double-digit growth rate this fiscal can be largely attributed to good demand in the US market. Exports to US during April-November 2002-03 registered a growth of around 40 per cent in terms of
quantity and 17.17 per cent in terms of value over the previous year. Ready-made garment exports to the EU during April- November 2002-03, however registered a decrease of one per cent in terms of quantity, though it went up by 14.67 per cent in terms of value. A similar trend was witnessed in the case of Canada, where exports during the first eight months of the current fiscal, declined by over 6 per cent in terms of
quantity and 13 per cent in terms of value. During November 2002, exports to US have shown an increase of 6.53 per cent in terms of quantity while registering a decrease of 8.98 per cent in terms of value.
PTI |
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Fiat sells stake in GM for $ 1.16 billion New York, December 21 A statement released by Fiat USA said yesterday the company had sold 32.05 million shares of GM stock, “representing Fiat’s entire stake in GM,” to an unnamed US investment bank. “These transactions were fully reviewed with GM prior to being executed and will have no impact on the industrial relationships or contractual arrangements between Fiat and GM,” the statement said. “This transaction will allow Fiat to substantially improve the net financial position of the group.” A spokeswoman for GM said the company waived the right to buy back the stock that it used in an exchange to buy its stake in Fiat in 2000.
AFP |
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AirTel launches ‘Bid N Buy’ Chandigarh, December 21 Mr Vinod
Sawhny, CEO, Bharti Mobile Ltd, Northern Region, in a press release issued here today, said, ‘‘To participate in the Bid N Buy, the customer would have to register for the online auction programme by sending the key word as an SMS on 700. After that they can send a word ‘Bid’ to procure information about the product on the day and shelf price. After that they could send the amount through
SMS. All participating subscribers participating in the bid will receive updates on the current bid price as an SMS every hour,’’ he added. |
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GlaxoSmithKline to pay 37 pc
New Delhi, December 21 Despite sluggish business conditions, the aggregate of the dividends announced till date for 2002 amounts to 70 per cent, which is the same as last year, the company said in a statement here today. The statement said the sluggishness in the demand at the market place has affected the higher utilisation of the newly-installed state-of-the-art spray drier plant at Sonepat.
UNI |
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Global summit on SMEs concludes
New Delhi, December 21 Mr Vepa Kamesam, Deputy Governor, Reserve Bank of India addressed the business session on SME Finance and Regeneration.
TNS |
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by Ashok Kumar Hold TVS Motor shares Q. Should I hold or sell the shares of TVS Motor?
— Joseph Masih, Chandigarh With the exit of Suzuki Motor Corporation in November last year, the independent TVS Motor has got the much-needed freedom to design and develop new motorcycles and upgrade existing products to meet the changing customer requirement in the Indian markets. The divorce has also allowed TVS Motor to procure parts and subsystems from competitive sources from any part of the world, apart from saving in royalty payments and export commissions. It has provided an opportunity to the company to utilise its core competence in design, development, manufacture and marketing of two-wheelers in Asia. The company aims to become a significant player in South-East Asia. As the supplies constitute more than 60 per cent of the cost of sales, the company has decided to take this best practice to the supplier-level to reduce cost of supplies. It is in talks with 25 suppliers for implementation of this practice. The current year marked the launch of TVS Motor’s indigenous TVS Victor that was well received by the market. Between forthcoming January and June 2003, the company plans to launch new variants of TVS Victor, and will also relaunch Fierro as the current style of Fierro has not gone well with customers as against competitors’ products. TVS Motor holds a 60 per cent stake in Lakshmi Auto Components (LAC). However, as the market capitalisation of LAC is very low, and as there are no significant advantages, a merger is not on cards. For the fiscal ended March 2002 sales were Rs 1930.5 crore, PBIDT was 7.8 per cent, net profit was Rs 54.3 crore and the EPS was Rs 22.6. For the quarter ended September 2002 sales were Rs 705.1 crore, PBIDT was 9.3 and net profit was Rs 30.9 crore. Hold on to the shares of this company. Q. What is your opinion about the prospects of
BRPL? — Tejwant Pal, Shimla Bongaigaon Refineries & Petrochemicals Ltd (BRPL) exhibited a strong performance in Q1 of the current fiscal on the back of better refinery margins and excise concessions granted in the Union Budget. This is despite a lower throughput in last quarter compared to corresponding quarter. Favourable prices of refinery products and crude oil in Q1 resulted in better refinery margins. The government has granted 50 per cent relief in excise for refinery products cleared from refineries based in the North-east region, including that of BRPL. This has resulted in a benefit of Rs 27 crore for BRPL in Q1 and has been credited as other income. This benefit, granted by the Budget would continue till the notification remains in force. Majority of refinery products of the company go out of the North-eastern region and as such requires the company to bear under-recovery of freight and sales tax. This had an impact of Rs 12 crore in the last quarter. BRPL has to recover Rs 20 crore from OCC with regard to APM period as at the end of last quarter. This is after adjusting a one-time claim of Rs 6.49 crore by OCC during the last quarter on account of crude pipeline freight of earlier years. BRPL is setting up a LPG bottling plant with a capacity of 22,000 tpa. It is undertaking modernisation of refinery automation, installing addition boilers to cater to enhanced requirement of steam and power. Though IOC markets BRPL’s petroleum products, the latter is planning to establish a modern retail outlet on the national highway between Guwahati and Shillong. Other products are marketed by BRPL on its own though its retail nationwide network. For the fiscal ended March 2002 sales were Rs 1070.2 crore, PBIDT was -22.2 per cent, net loss was Rs 198.6 crore. For the quarter ended September 2002 sales were Rs 466.4 crore, PBIDT was 14.7 per cent and net profit was Rs 30.8 crore. Overall, the prospects for this company appear satisfactory. |
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by Praful R. Desai Offer of same pay Q: When the driver of a vehicle was injured and became unfit for driving, whether offer of another post of lower cadre but with same pay, would amount to reversion? Ans: M.P.H.C. was considering this point in Awadesh Narain Mishra v M.P. State Road Transport Corporation (2002-III-LLJ 800) as under. It is not disputed that the petitioner was initially appointed on the post of driver in 1964. He had met with an accident while driving the vehicle which caused personal injury to the petitioner. On account of infirmity, his licence was cancelled. The case of the petitioner in that way was referred to for change of cadre. It was recommended to post of Vehicle Inspector. However, that post was abolished. Therefore, he was offered the immediate lower post of Fuel Attendant and the salary which he was drawing was also guaranteed in the aforesaid order of offer itself. The learned Single Judge while dismissing the W.P. observed that instead of submitting to the option, the petitioner stopped attending the duties and the offer was also not challenged immediately after the order was passed. Since the respondents have submitted that the wages already paid to the petitioner shall not be curtailed even on the post of Fuel Attendant, this cannot be treated an order of reversion. Since option was called in 1995. The petition itself was filed after two years from the offer, which was highly belated. The petitioner’s contention is that even his previous salary was not paid to him and in no case he can be compelled to join on the post, which is lower in cadre. However, the H.C. was of the considered opinion that the respondents, after the petitioner was found unfit for the post of driver, could have very well terminated the services on medical grounds, instead it is on compassionate grounds that he was offered another post carrying same pay. The offer, in the opinion of the H.C. does not amount to an order of reversion. Consequently, the H.C. held that the appeal has no force and was dismissed accordingly. However, it was clarified that in case previous arrears of pay are pending, the appellant is free to make a representation with regard to it to the authority concerned.  |
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by K.R. Wadhwaney Now buy aircraft without delay WORLDWIDE, aircraft are purchased on the basis of technical evaluation. But in this country this golden principle is pushed behind because of political considerations. The aircraft acquisition becomes murkier as Airbus Industries and Boeing inject their own bit of politics because each is eyeing for lion’s share in the
multi-crore deal. The Civil Aviation Ministry has sent the proposal for acquisition of 43 aircraft for Indian Airlines and 17 for Air India to the Cabinet Committee on Security (CCS). Why the CCS has been involved for the purchase of aircraft. It is not a convincing move but the government holds the view that the CCS should take the decision owing to “geo-political and geo-strategic considerations”. Whatever may be the government’s reasoning, aviation experts opine that technical evaluation should get precedence over political considerations. But this will be possible only when Airbus Industry and Boeing are prevented from putting their own political pressures. Both AI and IA Boards have approved the purchase of aircraft on the basis of technical evaluation. Their recommendations should be respected and aircraft acquisition undertaken without further delay. AI and IA are already lagging behind and further delay will push them behind in the race, where only the fittest can survive. Soon, there will be a new Board of Directors for Air India, as suggested by the Parliamentary Committee on Public Undertakings. One hopes that new Board of Directors do not scuttle the proposal pertaining to the aircraft acquisition. Sensible move Owing to the
foggy season, which is about to hit the northern belt, China Airlines of Taiwan has re-scheduled its flights. The rescheduling of fog over IGIA will be considerably reduced. Several other airlines are also taking precautionary measures so that they do not face undue disruptions. The Airports Authority of India (AAI) has issued a release saying that the installation of ILS (Cat IIIA) will improve the runway visibility for pilots airing fog. The AAI will also put into service special cell to apprise passengers about the latest flight timings. Through this latest device,
aircraft can land when the runway visual range is 200 metres and decisor height is 15
metres. |
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Tepco gets ISO Landmark Apollo Hospitals UTI Bank AirTel point |
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