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ADB no to FM’s demand for lower interest rates
Indian MoU with ICICI Bank for funding acquisitions
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HP formulates new industrial policy
Shimla, May 7 The Himachal Government has formulated an investor-friendly industrial policy to accelerate the growth of industrial sector, which contributes about 15 per cent to the state domestic produce.
Analjit to go for probate of Bhai Mohan Singh’s will
India tops in global retail development
Inflation down
Nabard MD
Market
Update
Corporate
Results
Tax Advice
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ADB no to FM’s demand for lower interest rates
Hyderabad, May 7 “We lend at about LIBOR+10, which is extremely low when explained in the long- term nature of these loans,” Asian Development Bank President Haruhiko Kuroda said here yesterday. Earlier in the day, Mr Chidambaram had asked the Manila-based ADB to reduce its loan charges to the levels prevailing before year 2000, saying that financial parameters of the bank had been robust and the cost of funds was critical to its business. To a question on the Finance Minister’s suggestion, Mr Kuroda said because of strong financial conditions of the bank, it had reduced charges on loans by lowering cost of funds in many ways. Mr Chidambaram, who is also the chairman of the ADB’s Board of Governors, said the commitment fee should either be eliminated or substantially reduced through improvements in operations and internal efficiency of the bank. Mr Kuroda said ADB’s lending had some borrowing cost, including interest payment and commitment fee. He said since the bank’s lending was based on London inter- bank offer rate (LIBOR), interest rates fluctuate on the basis of market rates. “We could borrow at very low rates, and adding administrative costs to that, we lend. The bank’s lending rates are very low,” he said. On the Finance Minister’s another suggestion that the ADB shift its focus to facilitate private investment in the region, Mr Kuroda said the bank’s yet-to-be-unveiled medium term strategy would show the private sector had a key role to play in poverty eradication and development in developing countries. Mr Kuroda said the ADB had been very active in developing bond markets in Asia for the past three years so that savings in the region could be channelised for its investment needs and global imbalances reduced. On Mr Chidambaram’s suggestion for the ADB to be inclusive in its initiatives for financial integration, Mr Kuroda said the bank’s efforts at regional cooperation included monetary cooperation as well. Mr Chidambaram’s suggestion was in view of initial talks among ASEAN+3 countries (of which India is not a part) for a common currency unit in Asia. “The ADB is prepared to assist any country or sub-region in Asia. In this respect, we are helping ASEAN+3 Finance Ministers process of monetary integration. It means that we will cooperate with any sub-region,” he
said. — PTI
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Indian MoU with ICICI Bank for funding acquisitions
Mumbai, May 7 The funding arrangement for PDPs would be a syndicated external commercial borrowing
(ECB) of $152 million, with ICICI Bank acting as the sole arranger and underwriter, the airline said here today. The agreement would be spread over four years from June, 2006, to January, 2010. In addition to PDP funding, ICICI Bank has also agreed to provide assistance to Indian in applying to export credit agencies
(ECA) for long- term funds with ECA comfort. The MoU was inked by Indian CMD Vishwapati Trivedi and Joint Managing Director of ICICI Bank Kalpana
Morparia. On February 20 this year, Indian had signed an agreement with Airbus Industrie for the purchase of 43 Airbus A320 family aircraft — comprising 19 A319s, four A320s and 20 A321s — at an estimated cost of $2 billion. This acquisition will allow Indian to step up growth, expand market and improve the quality of its services, besides replacing some of its existing Boeing 737 and Airbus A300 aircraft, the airline
said. — PTI
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HP formulates new industrial policy
Shimla, May 7 The new industrial policy focuses on ensuring inter-sectoral co-ordination and planned industrial development throughout the state. To ensure balanced industrial development and encouraging local enterprise, new areas such as agro-horticulture produce-based industries, local resources-based industry have been identified. Special economic zones (SEZs) are being set up in Kangra, Una and other districts of the state at an estimate cost of over Rs 5,000 crore. There are a number of fiscal incentives available to industrial units in the form of subsidies: concessional rate of electricity duty and deferment of the VAT depending on their locations. All eight tribal development blocks, 15 other backward blocks and all backward panchayats of the state have been included in "C" category area. They have been declared as tax- free zone and units located in these areas are exempted from payment of VAT and other levies for a period of 10 years. Border belt of Sirmaur and Solan districts have been put in "A" block, where industries will be entitled to deferment of VAT for a period of 5 years.
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Analjit to go for probate of Bhai Mohan Singh’s will
New Delhi, May 7 The move has already been challenged by Mohan Singh’s eldest son Parvinder Singh’s
children —Malvinder and Shivender, the current owners of Ranbaxy and Fortis Hospital. “We will file for probate in the court sometime in this week but have not decided as to which court will we move but largely it has to be in a lower court,” Mr A.K. Sharma, counsel for Analjit Singh, said. Mr Sharma said the move was being opposed by Malvinder and Shivender. “They have filed a caveat against executing the will and have already issued notice against the executers,” he said. He, however, said a settlement through dialogue was still an option.
— PTI
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India tops in global retail development
New York, May 7 India was given the top ranking in management consulting company A.T. Kearney's 2006 Global Retail Development Index (GRDI). "The Indian retail market is gradually but surely opening up, while China's market becomes increasingly saturated", said Fadi Farra, a principal in A.T. Kearney's Consumer Industries and Retail Practice and leader of the GRDI study. Much to the surprise of market observers, China was ranked fifth in this year's tally, declining one more place since 2005.
— PTI
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Market may climb further
by Lalit Batra Strong data on automobile sales for April, 2006, and continued buying by foreign institutional investors (FIIs) propelled the markets further. Sensex jumped by 317.14 points to settle at a lifetime closing high of 12,359 while Nifty moved up by 2.9 per cent to settle at an all-time closing peak of 3,663. Intra day volatility continues to remain extremely high. Markets have continued to exhibit exceptional strength on the back of strong global and domestic liquidity. Morgan Stanley Capital International Inc. (MSCI) is slated to announce the next quarterly revision in its indices for various markets across the world, including India, on May 10. The inclusion of Indian stocks in the MSCI Asia Index will be a big positive for the Indian markets which may rally further. Technical charts indicate a further upside to the market with small resistance at 12,450 on Sensex. IDFC The IDFC (Infrastructure Development Finance Corporation) was established in 1997 as a private sector enterprise by a consortium of public and private investors. The IDFC operates as a professionally managed infrastructure-financing entity with focus on energy, telecom, transportation and industrial and commercial projects. Its expertise in the infrastructure sector and strong relationship with the government and infrastructure sponsors provides it with a platform to facilitate private investment and public-private partnerships in infrastructure projects in sectors where market structures, government policy and regulations are evolving. India is currently spending a miniscule proportion of the required outlay. One analysis indicates that China spends seven times as much as India on infrastructure (excluding real estate) in absolute terms. Private sectors players needs to fill the void as the government funding cannot satiate the investment requirement. This indicates significant opportunities for further infrastructure development and financing in India, particularly as regulatory, legal and market frameworks evolve and become more supportive of private investment. The IDFC’s strong relationship with its chief promoter, the government, gives it access to decision-makers in government entities and multilateral development agencies. As a consequence, the IDFC is able to play a significant role in the direction of infrastructure policy in the country, thus placing itself ideally to cater to the infrastructure-financing requirements. Being the largest private sector infrastructure-financing player in the country makes the rationale for IDFC’s growth uncontested. Nonetheless increasing penetration of banks in this segment and their cost advantage (due to the ability to raise low-cost deposits) has intensified competition for the IDFC over the past few years. However, having the domain expertise for project appraisals, the highest operating efficiency in the financial sector and sufficient equity capital to support growth makes the IDFC well positioned to capitalise on the opportunities. Investors with a three-year perspective may buy the stock at the current levels.
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i-flex net up, declares 100 pc dividend
Mumbai, May 7 The revenues of the company increased 37.43 per cent to Rs 372.30 crore for the fourth quarter of 2005-06 from Rs 270.90 crore in the year-ago period. For the year ended March 31, the company has posted a net profit of Rs 240.70 crore as compared to Rs 197.70 crore a year ago and revenue increased to Rs 1,153.80 crore for 2005-06 from Rs 902.90 crore in 2004-05, i-flex informed the BSE. The Board has recommended a dividend of Rs 5 on equity share of Rs 5 each (100 per cent) subject to shareholders approval. Usha Martin
Wire and wire-rope manufacturer Usha Martin Ltd has posted a profit after tax of Rs 84.35 crore up 68.43 per cent and is looking at both inorganic and organic growth to boost its future profitability. The company's turnover for the fiscal ended March 31, 2006, stood at Rs 1,969 crore. Usha Martin's global operations contributed nearly Rs 600 crore of the total turnover. Company’s Joint Managing Director P. Bhattarcharya said that cost saving on this count would be Rs 180 crore on an annual basis.
J K Cement
JK Cement Ltd announced an increase of 165 per cent in its net profit for the quarter ending March 31, 2006, at Rs 16.4 crore as against Rs 6.2 crore in the same period last year. Company's gross turnover increased by 10.5 per cent at Rs 304.3 crore as compared to Rs 275.5 crore in the corresponding period last year. Its profit before depreciation, interest and tax (PBDIT) increased by 60 per cent in Q4 at Rs 48.9 crore as against Rs 30.6 crore last year during the same period. JK Cement's net profit stood at Rs 32.6 crore in the financial year 2005-06. Besides, the Board of Directors have declared maiden dividend of 15 per cent.
Travel House net up
Travel management company International Travel House today reported a 52.83 per cent year-on-year increase in net profit at Rs 7 crore for the financial year 2005-06. The turnover of the company during the fiscal was up 22.3 per cent to Rs 490.33 crore from Rs 400.85 crore in 2004-05, a release said
here. — Agencies
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Section 80C does not cover SCSS
by S.C. Vasudeva Q. As per the Finance Bill 2005, rebate U/s 88 in respect of LIC, PPF, NSC and another prescribed/ specified schemes is available U/s 80C to the extent of maximum Rs 1 lakh. Please advise me whether savings under Senior Citizens Savings Scheme (SCSS) - 2004 is also covered under this section. And please clarify whether education cess of 2 pc is payable by all assessees irrespective of the income amount. — O.P. Makhija, Ambala Cantt A. The answers to your queries are as under: (i) The savings under Senior Citizens Savings Scheme — 2004 are not covered under Section 80C of the Income-tax Act 1961 (The Act). (ii) The education cess is payable by all persons who come within the taxable limit. Section 80 CCE
Q. Annual tuition fees of our daughter is Rs 55,000 and of our son is Rs 25,000, both being students. This adds up to Rs 80,000 per annum. If I save Rs.20,000/- in this financial year 2005-06 in my provident fund, then the tuition fees and the provident fund together make a total of Rs 1 lakh. Will I be then eligible for a deduction of Rs 1 lakh from my taxable income under the new Section 80CCE of income tax? If my wife also wants to get the above benefit of Rs 1 lakh deduction from her taxable income, will she also be eligible for the same? Please clarify. — Paramjit Singh,
Ludhiana A. The answers to your queries are as under: (i) You would be entitled to a deduction of Rs 1 lakh (80,000 + 20,000 from your total income under Section 80C of the Act if the institution in which they are studying was situated in India. (ii) In case your wife has independent income and contributes to various schemes as specified in Section 80C of the Act, she will be entitled to a deduction to the extent of Rs 1 lakh from her taxable income.
Tax liability
Q. I retired on 31.08.2005. My total income (salary + pension) is Rs 1,97,400 (approx) per annum. My only savings are GIS Rs 360 and PLI Rs 4860. Kindly let me know my tax liability as per the new slab for Financial Year 2005-06. — Prem Singh, Patiala A. It is presumed that your contribution towards GIS and PLI are covered within the provisions of the Section 80C of the Act and you are not a senior citizen. On that basis tax of Rs 13,705 would be payable by you on the total income of Rs 1,92,180 (Rs 197,400 - Rs 5,220 ).
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In video: Exhibition in Hyderabad at 39th annual
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