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Reliance Power IPO ADAG chairman Anil Ambani speaks at a press conference in New Delhi on Sunday.
— Tribune photo by Manas Ranjan Bhui
To foray into equipment manufacturing
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Despite hurdles, we will succeed: Anil
Tribune News Service
New Delhi, January 6 "SEBI has not responded to our complaint... But the best response has come in the form of their approval for the IPO," he said when queried about the market regulator's response to the complaints lodged by his group alleging that many officials of elder brother Mukesh-run Reliance Industries, including key executive Manoj Modi, were sabotaging the IPO. On whether he expected further troubles before the IPO that is hitting the market on January 15 for raising up to Rs 11,700 crore, Anil said: "There will be hurdles... Our challenge is to cross those hurdles and proceed with further growth and value creation." Without naming anyone who was named in Reliance Energy's complaint to SEBI, he said complaints from 40-50 Members of Parliament against the IPO were sent to government and other agencies. "All the complaints were identical in draft and even in spelling mistakes... Those behind it should have thought of preparing at least 25-30 different drafts," he quipped. In the run up to the clearance for IPO, the finance ministry had sent a number of complaints received by it to the corporate affairs ministry and SEBI. At the same time, ADA group company Reliance Energy had written a letter naming 13 officials and associates of Reliance Industries alleging their involvement in sabotaging the initial public offer. Asked if the IPO could make him India's richest man ahead of elder brother Mukesh, he said: "These reports and figures amuse me. These are all financial indicatiors... These keep us on our toes and sometimes awake even during the night." As per the Forbes latest listing, Anil Ambani's wealth was put at $45 billion as on November 2, 2007 while Mukesh was ranked ahead with $49 billion. On the prospects of he becoming the richest man by virtue of promoters holding in Reliance Power, Anil Ambani talked about the legacy of his father and Reliance founder Dhirubhai Ambani who had created wealth for shareholders. He said promoters holding in Reliance Power would be close to about $22 billion if the company is listed at the lower end of the price band of Rs 405-450. Reliance Power is jointly promoted by Reliance Energy and AAA Ventures of Reliance Innoventures Pvt Ltd, a 100 per cent family-owned entity.
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To foray into equipment manufacturing
New Delhi, January 6 "We are in dialogue with two-three of world's major equipment manufacturers for a cooperation agreement... This could be in the form of joint venture or sourcing of equipments like turbines and boilers," chairman Anil Ambani said. There would be some development in the next couple of months, he told reporters while announcing details of the company's initial public offer from January 15 to raise up to Rs 11,700 crore. Identifying availability of quality equipment and their timely delivery as one of the major constraints in power generation, Ambani said the proposed move would ensure large scale availability of equipment at competitive rates to meet the ambitious targets.
— PTI |
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Chandrasekhar to head Ficci
New Delhi, January 6 Chandrasekhar would succeed Habil Khurakhiwala, who headed the Ficci from January 2007. Chandrasekhar would assume the office at the conclusion of the 80th annual session of the chamber, which is likely to be held in the end of this month or early February. Chandrasekhar has been member of the Prime Minister's Council on Trade & Industry (1999-2003), member of the Advisory Committee in the ministry of information technology, Government of India (1999-2002), chairperson of Infrastructure Task Force (1999-2002), Government of Karnataka, and director, Karnataka Power Corporation Ltd. He founded BPL Mobile in 1994 and was one of the earliest investors to spot the Indian telecom opportunity and invest in it. Chandrasekhar's flagship company, Jupiter Capital, is one of India's leading venture development, management and investment companies, focusing on infrastructure, media and technology ventures of the future.
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What to expect in 2008?
by J.C. Anand The year 2007 (calendar year) was highly rewarding, both for the Indian industry and shareholders. According to MSCI, international equity indices data (as on December 17) in terms of value and growth, India was the second best for the global market with 77.33 per cent in terms of value and 45.38 per cent in terms of growth, higher than China and Brazil. Only Peru’s indices was higher than India’s. It was another excellent year for the stock market. The Sensex posted an annual return of 46.6 per cent in December 2007 as against 47.67 per cent in 2006. BSE 500 was even higher by 62.6 per cent. The BSE metal index gained 120 per cent. The capital goods indices recorded returns of 116 per cent. BSE IT index was the only loser among the sectoral indices. What to expect in the year 2008? Foreign analysts are almost unanimous in forecasting depression in the US economy and slow-down in the global economies. Various indices relating to the US economy support this view of lingering depression in the US. Even if the Federal Reserve lowers interest rates, it would not go long to check depression. High international crude prices, at present $100 per barrel, would affect both the US and the global economies. The US depression would cut down net profitability of Asian economies which have high incomes based on exports to the US. This would apply to China, other southeastern Asian economies as well as to Japan. Indian economy is likely to suffer less for its exports to the US are much lower. Analysts, however, are upbeat about the Indian economy in 2008. Our finance minister stated last week that Indian economy was on track for 9 per cent growth in the current financial year. According to a poll among top local and foreign brokerage houses by a top financial daily, no major impact in India due to the possible US slow-down is likely. In fact, it may encourage more and more foreign funds to invest in the Indian stock market. Two-third of the brokerages predict 19,000-20,000 range in the Sensex in 2008. Two brokerage houses even expect the Sensex to move up to 25,000. There are also many other indications indicating high economic growth and good stock market returns in 2008. There are huge funds investing in the Indian stock market like the LIC, mutual funds and inflow of Arab investment funds from the West Asian countries. The negative factors which may affect the Indian economy are: high international crude prices, cut in subsidy and raise in petro prices, high interest rates, and rising input costs of the corporate sector. It appears that the year 2008 will maintain good economic growth in the Indian economy and stock market returns, but it is likely to be somewhat less than 2007. The slowdown in the global and the Southeast Asian economies is likely to affect Indian economy to some extent. Indian exports are expected to be lower and the gap between exports and imports is likely to widen considerably. This column always calls for long-term gains and many of its recommendations are tailored to that end. Short-term profit and trading does not bring gains as much as long-term investment. Long-term investors should invest in the following sectors in the next financial year: power sector, construction and infrastructure sector, banking and financial service sectors. Last fortnight this column had recommended investment in Oswal Chemicals, quoting around Rs 53. Now it is quoting Rs 75. It still has good potential to rise and may be retained as a long-term investment.
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No tax on interest credited to PPF a/c
by S.C. Vasudeva Q. Kindly clarify whether the interest of PPF which automatically stands re-invested is eligible for tax benefits under Section 80-C just like under the NSE 8 issue which is not paid but treated as invested and qualifies for deduction. Previously, the interest credited in the PPF account was not treated as re-investment for the purpose of Section 88 of the Income-tax Act as it was totally tax-free and did not form part of the taxable income. Now, when Section 88 is no more operative and Section 80-C allows a deduction for sums paid or deposited in the PPF account, should such interest therefore qualify for the deduction? — V.N. Bhatia A. The interest credited to Public Provident Fund Account is exempt from tax. Such interest is not treated as reinvestment for the purpose of section 80C of the Income-tax Act, 1961 (The Act). The deduction allowable under the aforesaid section is limited to the amount deposited in Public Provident Account. Rebate on tuition fee
Q. My daughter got admission in a dental college during 2004 and deposited Rs 1.50 lakh as tuition fee provisionally with the assurance from the college authority that excess fee will be adjusted in the following year as and when finalisation of fee with the government. Now, this issue has been settled. Now college authority is kind enough to adjust excess fee, i.e. (1,50,000-80,000)=70,000 during year 2007-08 and has charged Rs 10,000 as tuition fee. My question is whether can I take benefit of whole amount of Rs 80,000 of tuition fee or just of Rs.10,000. Virtually I have deposited Rs 80,000 for tuition fee during year 2007-08. —
Suraj Bihani A. Section 80C of the Act provides that in computing the total income of an assessee, being an individual or Hindu Undivided Family, there shall be deducted, in accordance with provisions of the aforesaid section, the whole of the amount paid or deposited in the previous year, being the aggregate of sums referred to in the aforesaid section, as does not exceed Rs 1 lakh. The requirement of the section is that the assessee has "paid or deposited the amount in the previous year". On a strict interpretation of the provisions of the aforesaid section, it may not be possible to claim the deduction of Rs 80,000 in the assessment year 2008-09, towards the tuition fee paid in two installments i.e. Rs 70,000 in the year 2004 and Rs 10,000 in the year 2007. However, it may also be possible to argue that the college authorities should have refunded the amount of Rs 70,000 instead of making adjustment. If such a course would have been adopted by the college authorities, the actual payment in the year 2007 would have been Rs 80,000 and on the said basis, the deduction of Rs 80,000 would have been allowable. You can thus make a claim for Rs 80,000 on the contention that the adjustment of Rs 70,000 avoids the necessity of receiving the amount and in return making the payment of the said amount towards the fee. The appellate authorities would definitely be considerate while taking into account the argument relating to the refund of the amount. Tax liability
Q. I regularly filed return up to 31.03.2003. But after that I left that job and being busy with my house construction, could not file my I.T. returns up to date. My working periods are as under: 01.04.2003 to No work 31.05.2004 01.07.2004 to Worked @ 21,000 (Total 14.03.2005 income = 1,78,500 & TDS paid 9,350 15.03.2005 to No work 10.08.2005 11.08.2005 to Worked @ 15,000 (Total 31.03.2006 income 1,15,000 & TDS paid 5,888) 01.04.2006 to Total income 1,86,000 Kindly calculate my income tax on the above mentioned income and how I can regularise my income tax return. Is there any penalty to me? Note: I am paying Rs 5,000 as housing loan per month. — Balwinder Singh, Jalandhar A. The answer to your queries is as under: The tax liability for the various years is given below. While computing the tax it has been presumed that the income earned by you is income from salary.
You cannot file a return for assessment year 2005-06 in view of the time limit having expired. Such return can be filed in response to a notice under Section 148 of the Income-tax Act 1961 (The Act) which can be issued by the assessing officer. You can file return for assessment years 2006-07 and 2007-08 upto 31st March 2008. The department can levy penalty for not filing the return for assessment year 2005-06. In case the return for assessment year 2006-07 is filed by 31st March, 2008, the delay for filing the said return would also attract penalty. |
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DoT doubts Spice eligibility
New Delhi, January 6 Spice is an existing licensee in two circles — Punjab and Karnataka. According to sources in the Department of Telecom, the company had accumulated losses of Rs 657.25 crore as per its annual accounts on March 31, 2006. This will bring down the net worth of its promoters to Rs 514.23 crore. "In view of their inability to meet net worth requirement as on date of application they (Spice) are not eligible for Unified Access Service (UAS) Licence for 20 areas. They may be eligible for some service areas depending on the net worth of the company and their promoters if they provide the correct picture of their Profit & Loss Account," DoT said. — PTI
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New Delhi, January 6
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