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Rathi
Thermex public issue by Today is
World Consumer Day Current steel prices are
realistic: ISA ONGC
to offer price today Tax
advice Income from
business outside India taxable Tax
on FDRs Inflation
index Tuition
fee Tax
deduction
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Markets turn bearish
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Rathi Thermex public issue by year-end New Delhi, March 14 Encouraged by the buoyancy in the housing and infrastructure sector, the group has decided to enhance its production capacity from 60,000 tonnes per month at present at its three plants—two at Ghaziabad in Uttar Pradesh and one at Bhiwari in Rajasthan. In an interview with The Tribune, Mr Anurag Rathi, Executive Director, Rathi Thermex, disclosed that the company would approach the primary market to raise funds for its expansion plans. In collaboration with Hennigsford Stahl Engineering GmbH, Germany, the group has already introduced Thermex steel with features like higher strength and toughness, in addition to better welding characteristics. The Rathi Thermex group companies include Rathi Bar, Rathi Udyog and Rathi Super Steel. It has over 3,000 employees and produces steel bars and other steel products for construction purposes. Mr Rathi said: “Our Thermex steel has been well accepted in the region, and is now widely used in all big projects, especially those sponsored by the government.” He claimed that they had the exclusive rights to use that technology in north India. At the national level, two major steel plants of SAIL — at Durgapur and Bhilai — have adopted this patented technology due to its simplicity and low costs. He said with an annual turnover of over Rs 500 crore, the group was giving tough competition to the small units of Mandi Gobindgarh and Ludhiana in the supply of construction steel. He said: “In fact, there is no competition for us in our product range, as we are dealing with an exclusive product. The market for Thermex steel is growing at a substantial rate as the group has recently made an investment of Rs 50 crore to upgrade its production technology and to strengthen the marketing network. The funds from public issue will also be invested in the plants to expand production capacity.” He claimed that the Thermex steel produced by them had high strength and resistance to corrosion and high temperatures. Mr Rathi said the Thermex steel was also earthquake resistant and would take less construction time as well. Mr Rathi said some small companies in Punjab and Haryana were selling their low-quality steel bars under their brand name. “We have initiated legal action against many of them, apart from creating awareness among the consumers. The company has already tied up with over 1,000 dealers to sell this special steel. Regarding the spurt in steel prices over the past year, Mr Rathi claimed that with the increase in raw material costs, the manufacturers had been forced to increase product costs. The steel industry, he said, had passed through a critical phase during the past few years and suffered huge financial losses. It was only after the boom in construction and infrastructure sector that the demand for steel and cement had firmed up, leading to the revival of the industry. Allaying the hue and cry raised by the end users of steel, he said: “We have not passed on the entire increase in cost of raw material to them. If we can cut down our costs by improving our production efficiency, they should also make efforts to bear the increased prices. I also feel that the steel prices may increase marginally after the Lok Sabha elections due to jump in demand.” Talking about the background of the group, Mr Rathi claimed that in India, the manufacturing of high-strength deformed steel bars was pioneered by them about 50 years ago in technical collaboration with Tor Isteg Steel Corporation, Luxembourg, through its Indian representative, Torsteel Research Foundation of India. Ever since the production started, there had been constant efforts for updating the technology and expansion of capacity to meet the growing demand for concrete reinforcement steel, he said. As a socially responsible corporate, the group pays the annual expenses of a school run for the underprivileged children, besides their involvement in charity work. “We are also running a gaushala where nearly 3,000 stray cows are being kept. Besides, all our plants are also fitted with pollution-control devices and are working according to the guidelines of the state pollution control boards, he added.
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Today is
World Consumer Day As
technology becomes more complex, yet increasingly necessary to preserve the industrialised world’s standards of living, the ordinary citizen is becoming dependent on products whose design and construction he/she may not understand. In this situation, assurance is an over-riding need. An assurance that the product is reliable and will meet expectations of the consumer in terms of safety, durability and other criteria. Consumers constitute the larger unorganised public body in the country and protection of their interests and rights is of vital importance in the welfare state like India. The Government’s commitment to the common consumer is amply reflected in the enactment of Consumer Protection Act, 1986 which is a bold comprehensive legislation. Another act of considerable significance to the consumer movement passed by Parliament, at about the same time, was the Bureau of Indian Standards Act, 1986. One of the major objectives of this Act was to make BIS another instrument of state to protect and promote consumer interest. The two major activities of BIS — Standardisation & Certification — encompass all the elements essential for promoting following six rights of the common consumer as enshrined in the Consumer Protection Act, 1986. (a) Right to be protected against the marketing of goods which are hazardous to life and property. The standards for products, which may have potential for creating danger to life and property during use or otherwise, prescribed built-in mechanisms for safety; domestic electrical appliances are common example. (b) Right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices — The product standards laid down by BIS invariably prescribed the information that the manufacturer should provide on their products/packing/container. BIS licensees have to necessarily provide such information on the label or the name place affixed on the product or the container. (c) Right to be assured, wherever possible, access to a variety of goods at competitive prices — Certification Marks Scheme of BIS brings certain benefits to manufacturers also who may opt for third party assurance of quality of their goods. The Bureau is constantly making efforts to attract more and more manufacturers to join the Scheme. The Bureau’s
endeavour is to provide the consumer with not only quality products but also a choice of quality products by bringing as many manufacturers of a product as possible under its Certification Mark Scheme. (d) Right to be heard and to be assured that consumers receive due consideration at appropriate forums — Form the Bureau, the apex policy -making body corporate, to various advisory committees down to the numerous technical committees, the consumer organisations have been provided a strong respresentation to enable them to actively voice the concern of the consumers. (e) Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers — To provide the consumers with prompt attention and speedy redressal of their grievances. BIS has a full-fledged public grievance officer at its Regional Office at Chandigarh. In case of any complaint about the quality of goods carrying the Standards Mark, the consumer should approach the Regional Office of the Bureau at SCO 335-336, Sector 34-A, Chandigarh. The Bureau takes complaints for speedy redressal to the satisfaction of the complainant. (f) Right to consumer education — BIS has
established a full-fledged Consumer Affairs Department to ensure intensive interaction with and provide service to common consumers and their organisations. To create awareness among consumers regarding Indian Standards and the Certification Mark Scheme, BIS is carrying out publicity through advertisements/ talks/ interview in newspapers, radio, television, etc. to the extent possible. Popularisation of Certification Marks Scheme with the help of BIS licensees is also being carried out. The author is Deputy
Director General Bureau of Indian Standards.
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Current steel prices are realistic: ISA
New Delhi, March 14 “There is sufficient supply of steel in the market and the industry has ample additional production capacity”, the ISA, which included major steel producers like Tata Steel, Essar, Ispat, Steel Authority of India and Jindal, said in a statement. The international price of coke has gone up by over 280 per cent from $ 120 per tonne in December 2002 to $ 465 per tonne in February this year. The price of iron ore has appreciated more than 300 per cent to $ 120 per tonne in February this year from $ 28 per tonne in December 2002. Similarly, freight charges have also gone up by over 400 per cent, the statement said.
— PTI
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ONGC to offer price today
New Delhi, March 14 The ONGC issue for disinvestment of 10 per cent government stake in India’s Fortune 500 company which closed yesterday had a price band between Rs 680 and Rs 750, attracting a massive six-times oversubscription. Although retail investors have not responded to the issue in a big way, they would get the ONGC share around Rs 700 even if the offer price is pegged at Rs 750.
— UNI |
Income from business outside India taxable
Q: I am a Freelance Software
Developer. I have developed software for a client in USA and I am
entitled to receive a sum of US $2000 from the said client. Please let
me know the tax implications?—Nitin Kumar,
Chandigarh Ans: The amount received by you would be taxable in
your hands as "Profits and gains from business and
profession". You would be entitled to deduct all expenses, which
have been incurred by you in connection with the development of the said
software. Further, you can also claim deduction u/s 80HHE of the Income
Tax Act as you have exported the software outside India. The deduction
for Assessment Year 2004-05 is 30 per cent of the profits derived from
export of software. However, please note that in order to avail of the
said deduction, the consideration for such services has to be received
in India in convertible foreign exchange within a period of six months
from the end of the previous year or within such further period as the
competent authority may allow in this behalf. Tax on FDRs Q: I am
earning a substantial amount of interest on fixed deposits with various
banks. The banks normally issue a TDS certificate to me at the end of
the year wherein the income that has been credited to my account is
mentioned alongwith the tax deducted at source thereof. As I have not
actually received the said income, is the interest income taxable in my
hands when I receive the certificate or not? Ans: As per Section 145 of the Income Tax Act, income
from other sources is computed either on cash basis of accounting or
mercantile system of accounting which is regularly employed by the
assessee. In other words, you have an option of getting the interest
income assessed to tax either in the year in which you actually receive
the said interest or get the same taxed in the year in which the
interest income accrues to you. In the absence of the information
regarding how this income has been subjected to tax in the earlier
years, it is advisable that the interest income is offered for taxation
on accrual basis. This will thus enable you to claim the adjustment of
the entire amount of tax deducted at source against the tax payable for
the year. Inflation index Q: I have sold certain shares during
the current financial year on which I am liable for paying capital gains
tax. The shares were purchased by me in financial year 1994-95. Please
let me know the cost inflation index for financial year 1994-95 and
financial year 2003-04. Ans: The cost inflation index for financial year 1994-95 and financial year 2003-04 is 259 and 463, respectively. Tuition fee Q: I have a son
who is studying in class 8th. His annual tuition fee is Rs 18,000, which
I pay on an A/c Payee Cheque directly to the school. Am I eligible for
any deduction on the amount paid by me as tuition fees? Ans: W.e.f. Assessment Year 2004-05 i.e. financial
year 2003-04, Section 88 of the Act has been amended, as a result of
which tuition fees (excluding any payment towards any development fees
or donation or a payment of a similar nature) is eligible for rebate
under the said section. Accordingly, you are eligible to claim rebate
u/s 88 from the tax payable by you. However, the maximum eligible amount
in respect of tuition fees is Rs 12,000 and, therefore, you would be
entitled to a rebate at the applicable rate. (depending upon gross total
income) on Rs 12,000. Tax deduction Q: I am an architect by
profession and have my own sole proprietorship concern. My gross
receipts for the year ending 31st March 2004 would be approximately Rs
12 lakh. I am told that I would be required to get my accounts audited
by Chartered Accountant. Please advise me on this matter. Ans: Under Section 44AB of the Act in case of a
person carrying on a profession whose gross receipts exceed Rs 10 lakh,
then he is under an obligation to get his accounts audited by a
Chartered Accountant. Therefore, you have been correctly advised in this
regard. Please also note that such audit report has to be furnished
alongwith your return of income on or before the 31st day of October
2004 i.e. the due date for filing the return of income. Readers can
send their queries by e-mail to the following address: info@scvasudeva.com |
Markets turn bearish
Substantial
selling across sector by all categories of investors led to a sharp reversal in the and the indices nose-dived during the last week, even though some value buying at lower levels on Friday helped the indices recover some ground. The Sensex lost 3.1 per cent to close at 5700 whereas Nifty closed lower by 2.5 per cent at 1812. While the week largely witnessed selling pressure across sectors, one sector that came particularly under bear hammering was the software sector. This was due to four days of continuous losses on tech heavy Nasdaq and concerns playing at the top of investor minds about the 60-odd Bills, which have been passed in the US Senate to date. These are aimed at curbing outsourcing of US work to developing economies like India, which is, to some extent, being cited as being responsible for the jobless recovery being witnessed by the US economy. Market volumes continued to be on the lower side while breadth too remained negative as retail investors showed lack of interest with their money frozen in the spate of public issues. As a result, most of the sectors like auto, steel, technology, banking and FMCG stocks ruled weak while PSU shares ended flat. Lack of any positive triggers in the immediate term seems to be affecting market movements. The market technically looks weak and there are chances that the market may not find support at the 5,550-level. If the Sensex breaks the 5,550-level, then it may dip to the next support at 5,200-5,300 mark. Lack of buying from investors will keep the market subdued in the short term, as institutional investors are only expected to take a call after the March 2004 quarterly results start pouring in during the second week of April 2004. On dips investors should go bargain hunting with long term perspective.
GlaxoSmithKline Shares of GlaxoSmithKline Pharmaceutical (GSK Pharma) and Burroghs
Welcome (BWL) surged after the two companies announced that their boards would consider a proposal for merger of BWL with GSK Pharma. Though Glaxo and Burroghs welcome have been functioning as a single unit operationally, but non-acceptance of VRS by the Burroghs personnel had stalled the merger move. Now that Burroghs
welcome personnel have accepted the VRS, the decks have been cleared for the merger. Looking at Glaxo’s last year’s strong performance and the benefit that would accrue to Glaxo from the merger, the stock is once again recommend for long term capital gains. The stock has had a sharp run up to the announcement of merger, such gains may be difficult to come by in the short run, but over a longer term perspective the Glaxo growth story remains intact.
Hero Honda Shares of Hero Honda plunged last week by 10.9 per cent to close at Rs 475. The stock plunged on market rumors that Honda’s 100 per cent subsidiary Honda Motorcycles and Scooter India (HMSIL) is working on a new bike and it would launch a new bike in the lower-and mid-range segment, Hero Honda’s forte, it would hurt Hero Honda. Hero Honda is an equal joint venture between Honda Motor Company of Japan and India’s Munjal group. The stock has more than doubled in the last one year and investors holding the stock can book profit and re-enter at lower levels. If future developments indeed point to HMSIL actually launching a new bike, the investor may refrain for retaining the stock in its portfolio.
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The Rathi Thermex group, a major
private player in the medium-scale steel sector, has announced to bring
its public issue by the end of the year as part of its expansion plans.
Two companies of the group — Rathi Ispat and Rathi Udyog — are
already listed on the Bombay Stock Exchange.
