 |
|
Reliance board to discuss mass resignations next week
Left opposes opening of foreign sector to domestic airlines |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Govt considers exporting
Influential persons block
Pharma
scrips recommended for profit-booking Tax
advice Keep IT
records for 6 years, at least
|
|
Reliance board to discuss mass resignations next week Mumbai/New Delhi, November 28 Apart from discussing the six resignations, the board would also discuss related matters, the BSE has been told. Reliance Energy, formerly known as BSES, is in the business of generation, transmission and distribution of power in Mumbai. The company is also into the business of distributing power in other parts of the country. Reliance Energy’s greenfield project also includes a Rs 10,000 gas-fired power plant at Dadri in Uttar Pradesh, which will go into operation in 2007-08. Last week, six of the 11 directors on the board quit without giving any reasons. These included Mr Satish Seth, Executive Vice Chairman of Reliance Energy, and Mr K.H. Mankad, Director (Finance), Mr S.C. Gupta, Director (Operations), Mr J.P. Chalasani, Director (Business Development), Mr J. Ramachandran, Independent Director, and another director Amitabh Jhunjhunwala from Reliance Industries Ltd. The board of Reliance Energy also has representatives of the LIC and General Insurance Company. Former Army Chief General V P Malik is also on the board. None of the directors who quit have given reason for their decision. However, sources, here say Mr Anil Ambani may request them to continue on the board during next week’s meeting. It is believed that all of them are close to Mr Anil Ambani.
Anil e-mails
Caught in a row with elder brother Mukesh, Reliance Energy Chairman and Managing Director Anil Ambani today sought to enlist support of all 25,000 strong workforce of the company saying like them he was a professional and had “no personal shareholding in REL.” “For me professionalism is a value system, a state of mind and above all a culture of respect for all,” Anil said in an impassaionate appeal through a personal e-mail to employees of Reliance Energy, where the parent company Reliance Industries Limited has majority stake. Anil sought to align himself with the professional workforce as against Mukesh who had sought to establish his supremacy by sending an e-mail on Tuesday last to all employees of Reliance group saying “there is no ambiguity in his (Dhirubhai’s) legacy that CMD is the final authority on all matters concerning Reliance.” Trying to assuage fears and uncertainty among REL employees following resignations of six directors on Thursday last in the face of the tussle between the two brothers, Anil said “I have requested each of the six directors to continue to serve the company, and to carry out their assigned roles and responsibilities as before.” “This development (resignations) has left all of you with a sense of anguish and uncertainty. I fully understand and appreciate these concerns,” Anil said and added “it will be of great support to me to receive your valued inputs and comments.”
|
|
Mulayam goes on
defensive
Lucknow: The family feud of the Reliance Group has forced the Uttar Pradesh Chief Minister Mulayam Singh Yadav to go on the defensive. Visibly nervous at the power struggle amongst the brothers, Mr Mulayam Singh Yadav has assured that it would not cast its shadow on the future power scenario of the energy-starved state. With the state adopting an Energy Policy inviting private capital in the power sector, Reliance Energy Limited (REL) was the first group to sign a ‘state support agreement’ with the government for setting up a Rs 10,000 crore 7000 MW gas-based power plant in Dadri in Ghaziabad district. According to government, it is the biggest gas-based power plant in the world. The state government has provided many concessions, including land at special rates and tax relief to REL for this. Work has already begun on the project. With the completion of the first phase by 2007-08 the state is expected to get 1500 MW of the 3740 MW generated in this phase. All of the state’s future development projections take into account this additional energy resource provided by the REL.
— TNS
|
|
|
Left opposes opening of foreign sector to New Delhi, November 28 We want “the government to reconsider this move seriously before taking any decision. There are number of reasons why such a proposal should not be proceeded with at present,” the four Left parties in a statement said today. It said the government should immediately expedite the fleet acquisition/leasing arrangements for Air-India and Indian Airlines so that our national carriers are strengthened and conditions created for providing a level playing field for them. The proposal for allowing private domestic airlines to operate to more foreign destinations may be considered later. The government announced plans to allow private domestic airlines to expand their international operations to more destinations. At present they are allowed to operate international services to the SAARC countries. The statement said it was not wholly correct to say that there was spare capacity in the domestic sector and under capacity in the international sector. The under capacity in the international segment has arisen due to the delay in the approval for the fleet renewal/acquisition plans of the two national carriers. On the ground that private domestic carries have to be compensated for the losses suffered by them, the Left parties said the losses have come about in a period that was particularly bad for airlines worldwide. The Left parties said underutilisation of bilateral
entitlements available to the Indian side is another reason cited for allowing private airlines to operate
international services. “Private airlines were originally granted licenses to operate only scheduled domestic air services. Their licenses have since been altered to allow them access to market that should logically be the preserve of the national carrier,” it said. On the argument that allowing more Indian carriers to operate internationally will result in the development of tourism, the Left parties said “development of tourism does not need many airlines to operate against a country’s entitlements.” “France, which attracts the largest number of tourists in the world, has just one international airline that operates outside the EU,” it said.
|
|
Govt considers exporting cotton to Pak New Delhi, November 28 In this regard, Union Textiles Ministry has approached the Ministries of Agriculture and External Affairs to explore the possibility of exporting raw cotton to Pakistan through the Wagah border. Talking to reporters here last night, Textiles Minister Shankar Sinh Vaghela told that he had written to both the ministries that Indian cotton would be a cheaper import for Pakistan, particularly, because land route could be use. India can also be in a better competitive position as it can make supplies to the neighbouring country from Punjab, Haryana and Rajasthan, which grew bumper crop this year. These three states are likely to produce 40 lakh bales of cotton this year, twice than last year’s average output. The Textiles Ministry controls the Cotton Corporation of India (CCI), which awards contracts for import and export cotton. Farmer organisations have also welcomed the move. Since the cotton prices in Punjab and Haryana have fallen to around Rs 1,600-1,700 per quintal recently from Rs 2,700-2,800 per quintal prevailing about a month ago.
|
by J.C. Anand
Pharma scrips recommended for profit-booking
The stock market has been moving up during the past fortnight despite alarming signals from many analysts that the market was ripe for a major correction. What now adds to these alarms is the management crisis in the Reliance Group companies due to open rift between the two Ambani brothers. The stock market has not only crossed 6,000 points mark on the Sensex but many blue chip equities have climbed up to very high levels. ABB, which was quoting around Rs 750 a month back, is now moving around Rs 942. Multinational pharma shares like Glaxo (quoting around Rs 750), Novartis (quoting around Rs 675) and Pfizer (quoting around Rs 595) have scaled to new heights, though there are some substantial reasons for these gains. Parliament will be meeting for its winter session in the first week of December and the past experience is that the market gets subdued when Parliament is in session. There has also been a boost in the market prices of many textile companies. This applies not only to Vardhman Group but also to Arvind Mills, Nahar Spinning, Vardhman Polytex, GTN and even Eurotex. It is time to make selective profit-booking in the companies which have moved up more by the bullish flavour in the market than by their inherent strength and future prospects. It has to be selective for some of the companies, which have registered new high levels, are likely to maintain their price level and may even improve upon them. In this category, I would place multinational pharma companies. (Glaxo, Pfizer, Novartis, E-Merck, Wyeth). ABB scrip which has gained about Rs 200 in the market price since October, 2003 has also good prospects. Fred Kindel, ABB’s CEO-designate, who was on his maiden visit to India, said on November 22 that ABB India had tremendous opportunities for further growth and would continue to report strong, profitable and sustainable growth. The company has a comprehensive 3-year investment programme in India with an outlay of around $ 100 million for capacity and range expansion.
|
by S.C. Vasudeva Keep IT records for 6 years, at least Q. For
how many years should old account books be kept to avoid taxation
complications? Is it necessary to keep IT return, assessment order,
any other paper for the period for which account records have not been
maintained? I am now 65 years of age. What benefit can I avail on tax,
bank interest etc.? P.N. Bala, Ambala Cantt A. According to the provisions of the Section 149 of the Income Tax Act, 1961, a notice in case where an income has escaped assessment can be issued, within a period of six years from the end of the relevant assessment year if the escaped income is likely to amount to Rs 1 lakh or more for that year. The books of account in the case of the person other than a company, therefore, must be kept at least for the aforesaid period. In case of companies, the provisions of the Companies Act, 1956, apply and, therefore, the company is required to maintain its books of account in accordance with such provisions. A copy of the return of income, the assessment order in original and the proof of payment of Income Tax and copy of financial statements (i.e. profit and loss account and balance sheet with relevant schedules) for each year should, however, be kept permanently to avoid any problem at a later stage. A senior citizen, i.e. a person of 65 years of age or above, is entitled to a rebate of Income Tax, which is deductible from the income tax chargeable on his total income for any assessment year. The rebate allowable is an amount equal to 100 per cent of the IT payable on the total income or an amount of Rs 20,000, whichever is less. There is no other rebate allowable to a senior citizen under any other provisions of the Act. Agriculture land Q. Has the amendment regarding the sale of urban agriculture land been passed in the last Finance Bill, 2004 or not? Please let us know. — T.S. Dhindsa, Patiala A. The Finance Act, 2004, has exempted the compensation received in respect of compulsory acquisition by law of an urban agricultural land owned by an individual or the HUF. This has been done by insertion of a new sub section in Section 10 of the Act. According to the new sub-section, the capital gain arising from the transfer of urban agricultural land, which was being used for agricultural purposes by such individual or his parents, during the period of two years immediately preceding such transfer shall not be chargeable to tax. Sale and renovation Q. I am a retired
Haryana Govt. employee residing at Khanna (Punjab) in my own house.
There is another plot in the name of my wife at Khanna. She is a
housewife and has no income of her own. I have an allotted plot in
urban estate, Panchkula, and want to dispose of the same. The present
house is not in a good condition and needs a lot of renovation,
involving huge expenditure. Kindly advise if the sale proceeds of
Panchkula plot be safely spent on renovation of my old house, or
constructing a new house on the plot owned by my wife and, thereby,
avoiding my income tax in the shape of capital gains. Can I also
purchase a constructed house with this amount? The time limit may also
be indicated. — Sant Singh, Khanna A. It is not clear from your query whether the house is in the name of your wife or whether she is a name lender, you being the actual owner. The answer to your query is being given on the presumption that the plot held in the name of your wife has been declared as your property in the return of income and your wife is only a name lender. The exemption from capital gain on sale of ‘Panchkula plot’ can be claimed only if the ‘Khanna plot’ is held to be your property. The exemption can be claimed only if the amount is spent for the construction of a new house. You can also purchase a constructed house with this amount, within a period of one year before or two years after the date on which the transfer takes place. The construction of a new house can however be completed within a period of three years from the date of transfer.
|
bb
FIIs STPs’ share MTNL Toy Train |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
