Mumbai, August 28
Capital market regulator Securities & Exchange Board of India is looking to bar audit firms from certifying accounts of listed companies for a certain period if accounts of books, certified by them earlier, are found to have been manipulated.

SEBI’s decision follows a recommendation to this effect by its primary market advisory committee (PMAC) to improve disclosure norms for companies coming out with public offer of shares.

"SEBI should penalize audit firms that have certified the books of accounts of companies which were later found to have been manipulated, including debarring them for a specified period from certifying the accounts of listed companies," the advisory committee had suggested.

The role of audit firms came under the scanner following the country's biggest accounting scam at the erstwhile Satyam Computer over three years ago. Along with the company's then top management team, auditors were also accused for their lack of oversight in certifying it books of account.

Earlier this month, SEBI asked all listed companies to submit separate filings with adverse audit observations made against them, in a move aimed at tightening noose around companies trying to hide issues raised by auditors in their voluminous annual reports.

In a circular issued on August 13, the market regulator also asked the bourses to conduct immediate scrutiny of issues highlighted in these documents and seek necessary clarifications from the concerned companies about the observations made by auditors.

If the auditors' observations are found to be serious, SEBI can ask the companies to restate financial accounts and to inform shareholders about it.

All listed firms are required to submit the copies of annual reports containing audited financial statements to the stock exchanges. The new norms will be applicable to all annual audited financial results submitted by companies for the period ending on or after Dec 31, 2012. — PTI

New Delhi, August 28
Shares of HCL Infosystems surged more than 20% after a media report that China's Lenovo Group is in talks to buy a 50.1% controlling stake in the Indian company for around Rs 5 billion. The report cited unnamed senior officials at personal computer maker Lenovo and investment bankers familiar with the development.

HCL Infosystems' corporate communications head Ashutosh Bhattacharya told Reuters in a text message that the company would make a statement later on Tuesday.

For the quarter ended June 30, HCL Infosystems reported consolidated profit of Rs 20 million compared with Rs 115 million a year earlier. Sales for the quarter rose to Rs 27.2 billion from Rs 26.2 billion.

HCL Infosystems also makes its own branded personal computers including laptops, desktops and tablets. The company decided in June to streamline its computer products business into a separate wholly owned subsidiary. — Reuters

No plans to sell stake to any firm: HCL

With reference to media reports, Noida-based HCL Infosystems has clarified to the BSE that the promoter (HCL Group) has no intentions to sell stake in the firm. It went on to add HCL Info was not aware of any such development about it being in talks with any company.

New Delhi, August 28
Reiterating its commitment to Haryana, India’s largest carmaker Maruti Suzuki India Ltd, on Tuesday said it was committed to continue its operations in the state and will not cut back on any planned investments.

At the company’s 31st annual general meeting here, the first after unprecedented violence hit its Manesar facility in Haryana last month, Maruti Suzuki chairman R.C. Bhargava, while stating the plant would continue to be under security cover for some time, assured the shareholders that the plant would be back to normal production in a short time.

The meeting started after observing a minute's silence in memory of slain general manager (HR) Awanish Kumar Dev.

"Manesar plant violence was pre-meditated. It was unprecedented, not only in Maruti Suzuki’s history, but also in the industrial relations history of India," Bhargava said while adding the plant would remain under security cover till the workers feel safe.

"We’ll continue to have security at the Manesar plant till the time our people feel secure and think it can be done away with it," Bhargava said.

Visiting chairman of Suzuki Motor Corp, Maruti Suzuki's Japanese parent, Osamu Suzuki, was also present at the meeting.

"This AGM isn’t being held in the happiest of circumstances because of what happened on July 18, unprecedented not only in Maruti’s history but that of industrial India," Bhargava, said. "Only one died but many more could have because of the way the attacks were carried out."

Workers armed with steel rods and car parts rampaged through the factory in Manesar on July 18, assaulting supervisors and setting fire to parts of the plant.

"Suzuki is supportive of Maruti and we will continue operations in Manesar, there is no cut back in planned investments," Bhargava said.

Osamu Suzuki while calling on Haryana Chief Minister Bhupinder Singh Hooda said given a similar assurance and said that the State would remain the first home for the company. He had also requested him to find the actual cause of the violence at Manesar, and Hooda has promised to do so, he added.

New Delhi, August 28
Having got the deadline extension from the Supreme Court for completing the auction of 2G spectrum vacated following the cancellation of licences, the department of telecom on Tuesday came out with an “information memorandum” that listed the details of how the auction would progress.

According to the memorandum, which the spectrum auction will start from November 12, the notices to invite applications will be issued on September 28. As had been noticed during the auction of the 3G spectrum in 2010, it could take days for the auction to finally end.

While in the 3G auction the government netted more than Rs 63,000 crore, the more precious 2G spectrum may bring in greater revenue for the national coffers.

On Monday the Supreme Court had extended the timeline for completing the auction of spectrum by January 11, 2013, from earlier deadline of August 31.

Notices to invite applications to be issued on September 28 would be for two different airwaves band used for mobile telephony. The companies interested in auction will have to submit their applications by October 19. DoT has already appointed an auctioneer and the auction is being conducted as per the schedule worked by the auctioneer. 

Bangalore/New York/Seoul, Aug 28
Apple Inc is seeking speedy bans on the sale of eight Samsung Electronics phones, moving swiftly to translate its resounding court victory over its rival into a tangible business benefit.

The world's most valuable company wasted no time in identifying its targets on Monday: eight older-model smartphones, including the Galaxy S2 and Droid Charge. While Apple's lawsuit encompassed 28 devices, many of those accused products are no longer widely available in the world's largest mobile market.

Although Samsung's flagship Galaxy S III phone was not included in the trial, the jury validated Apple's patents on features and design elements that the U.S. company could then try to wield against that device. Apple may not have to seek a new trial over the S III, but can include it in a "contempt proceeding" that moves much faster, according to legal experts.

Many on Wall Street believe Apple now has momentum behind it in the wake of its near-complete triumph over the South Korean company on Friday.

"The evidence and weight of the case are heavily in Apple's favor," said Jefferies & Co analyst Peter Misek. "We expect there's a two-thirds chance of an injunction against Samsung products."

An injunction hearing has been set for September 20. If U.S. District Judge Lucy Koh grants sales bans, Samsung will likely seek to put them on hold pending the outcome of its appeal.

Samsung said it will take all necessary measures to ensure the availability of its products in the US market. A source familiar with the situation said Samsung has already started working with US carriers about modifying infringing features to keep products on the market should injunctions be granted.

Apple's win on Friday strengthens its position ahead of the iPhone 5's expected Sept 12 launch and could cement its market dominance as firms using Google Inc's Android operating system — two-thirds of the global market — may be forced to consider design changes, analysts say.

Apple was awarded $1.05 billion in damages after a US jury found Samsung had copied critical features of the iPhone and iPad. The verdict could lead to an outright ban on sales of key Samsung products. Apple's stock scored another record high on Monday. — Reuters

New Delhi, August 28
The Geneva-based, Global Subsidies Initiative (GSI) in partnership with the National Institute of Public Finance and Policy (NIPFP) and Tata Energy Research Institute (TERI) has prescribed a roadmap for reducing fuel subsidies.

The report says the plan should be implemented in stages, so as to reduce price shocks to the economy and consumers. It adds a communication plan that aims to raise awareness about costs and benefits of subsidies and informs the public about how and when the reform plan will be implemented can help overcome some of the political barriers to reform.

On diesel prices, the study has recommended progressively decontrolling diesel prices by eliminating under-recovery over a period of around one year. This could be at a fixed rate of around Rs 1 per litre each month.

The other measures that could be looked at are reducing state taxes, reforms in vehicle taxation. The long term objective of this exercise should be to liberalize diesel pricing. On cooking gas, the report suggests there should be small price increase for LPG cylinders this year. In the medium term, systems should be put in place so that a cap of 8 cylinders per household can be introduced for 2013 and entire subsidies should be phased out in 3 to 5 years.