The Tribune, Chandigarh, India

To boost Re, RBI to sell bonds worth Rs 22,000 cr weekly
Tribune News Service & PTI

Mumbai, August 8
Faced with a weakening rupee, the RBI today announced it will sell government bonds worth Rs 22,000 crore every Monday to check volatility in the forex market. The measure is a part of a continuing effort to arrest the slide in the rupee, which hit a record intra-day low of Rs 61.80 against the dollar on Tuesday.

"Over the past two months, the RBI has instituted several measures to contain the volatility in the foreign exchange market," the central bank said.

"On a review of the impact of these measures and for effective liquidity management, it has been decided that the RBI will auction Government of India Cash Management Bills for a notified amount of Rs 22,000 crore once every week on Mondays," it said.

The duration of the auction will be announced one day prior to the date of auction, it added.

The rupee today recovered from an all-time closing low, adding 42 paise to end at 60.88 against the dollar. Yesterday, the rupee closed at 61.30 against the greenback.

To pay Rs 33,100 cr dividend to GoI

The RBI has more than doubled the dividend payout to the Government of India this year.

The RBI's Board, which held its meeting here today, approved the payment of Rs 33,100 crore dividend to the Government for the financial year ending June 30, the central bank said. Last year, it paid just 16,100 crore by way of dividend to the government.

No sovereign bonds

The government would not sell sovereign bonds in foreign markets anytime soon, Economic Affairs Secretary Arvind Mayaram, who was here to attend the Board meeting, told reporters.

"The government hasn’t said that we are going to launch a sovereign bond, so why is this question coming again and again,” Mayaram told reporters.

New Governor optimistic

Raghuram Rajan, who will take over as the governor of the Reserve Bank on September 5, admitted the country's economy was going through challenging times. "It is a challenging environment and we will overcome the challenges," Rajan said.

The governor-designate, who was also here to attend the Board meeting, has been appointed as officer on special duty ahead of his former appointment to the top job.

Pay service tax or face action, FM tells defaulters
Launches Voluntary Compliance Encouragement Scheme
Tribune News Service

New Delhi, August 8
Finance Minister P Chidambaram today said around 10 lakh service tax defaulters have been identified and he asked them to take advantage of the voluntary compliance scheme.

"Pay your service tax. This is an opportunity to put the past behind you and come clean," he said while unveiling the Voluntary Compliance Encouragement Scheme campaign which will run up to December 31, 2013.

Chidambaram said the scheme offering “no penalty, no interest”, provides one-time opportunity to the defaulters to come clean. The minister hoped that the scheme would result in substantial disclosure by non-filers. He exhorted the service tax assessees to make use of this opportunity and pay their tax dues to avail immunity from interest, penalty and other proceedings.

About 10 lakh non-filers or stop filers of service tax “are in a way defaulters and they are liable to punishment”, he said, adding, the government in the Service Tax Act has already provided for monetary penalty and punishment.

“Those who have collected service tax in excess of Rs 50 lakh and not deposited to government faces punishment of imprisonment up to 7 years,” the minister said.

Under the scheme, defaulters have to pay at least 50 per cent of arrears for the 5-year period ending 2012 and the balance in another six months without interest.

As of today, he said, 1,400 declarations have been filed and they have declared that they are liable to pay Rs 650 crore to government. It is working out to be Rs 50 lakh per declaration.

The scheme

Under the scheme, defaulters have to pay at least 50% of arrears for the 5-year period ending 2012 and the balance in another six months without interest
As of today 1,400 declarations have been filed and they have declared that they are liable to pay Rs 650 crore to govt

Rs 8,000-crore subsidy for oil retailers in Q1

New Delhi, August 8
The Finance Ministry today agreed to give Rs 8,000 crore cash subsidy to fuel retailers IOC, BPCL and HPCL to make up for less than a third of losses they incur on selling diesel and cooking fuel below cost.

Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) lost Rs 25,579 crore on selling diesel, domestic LPG and kerosene below cost in the April-June quarter.

Of this, the Finance Ministry issued a letter sanctioning Rs 8,000 crore, officials said.

The subsidy support sanctioned is way short of Rs 11,451 crore that the Oil Ministry has sought for the first quarter of the fiscal.— PTI

RS passes new Companies Bill
Will improve corporate governance, says India Inc
Sanjeev Sharma/Girja Shankar Kaura
Tribune News Service

New Delhi, August 8
The Rajya Sabha today approved the much-awaited new Companies Bill that replaces the nearly six-decade-old parent legislation and makes it mandatory for profit-making companies to spend on activities related to Corporate Social Responsibility (CSR).

The new measure seeks to enhance compliance, transparency and encourages self-regulation. Those companies not spending on CSR would have to explain the reasons for shortfall and also face penalty.

The companies would have to spend 2 per cent of their average net profit on CSR activities. However, only companies reporting Rs 5 crore or more profit in the past three years have to make the CSR spend.

With the new Companies Bill having been cleared by both Houses of Parliament, it will now go to President Pranab Mukherjee for his assent. The new legislation will come into effect with the relevant notification by the Corporate Affairs Ministry after the Presidential assent.

The new Bill was introduced in the Rajya Sabha on Tuesday after the Lok Sabha had passed it in December last year. The old Companies Bill has been in force since 1956 after the country’s first Companies Bill was brought into force by the British in 1919.

Industry has welcomed the passage of the Companies Bill in Rajya Sabha which will improve corporate governance, transparency in business and protect the interests of minority shareholders.

SN Ananthasubramanian, president, Council of the Institute of Company Secretaries of India (ICSI), said the new law promises improved corporate governance norms, enhanced disclosures and transparency, facilitation of responsible entrepreneurship, increased accountability of company managements and auditors, protection of interest of investors particularly small and minority investors, better shareholder democracy, facilitation of corporate social responsibility (CSR) and stricter enforcement processes.

Dinesh Kanabar, Deputy CEO, KPMG, said there were several significant provisions in the new Companies Bill which affect various stakeholders.

He said the Bill seeks to considerably enhance the current levels of corporate governance. The Bill provides a tenure of 10 years for a Director and also provides maximum number of directorships. It also makes directors accountable for the financial statements.

Industry body CII said the Companies Bill is commensurate with global standards vis-à-vis disclosure requirements, increased democratic rights for shareholders, self-regulation and accountability.

Hero MotoCorp eyes Rs 60,000-cr turnover by 2020
Tribune News Service

Gurgaon, August 8
Country’s largest two-wheeler manufacturer Hero MotoCorp today said it was aiming at a turnover of Rs 60,000 crore by 2020 and launch a fully indigenous product in the coming few years.

Having recently kick-started three internally developed engines, Hero MotoCorp is also looking at achieving an annual production capacity of 12 million units by 2020.

Speaking to reporters on the sidelines of a function held to celebrate the rollout of the 50-millionth two-wheeler from its Gurgaon plant, Hero MotoCorp chief executive Pawan Munjal disclosed the company’s future plans which include regaining the 50 per cent market share that it held till recently.

He said the company was looking at starting 20 manufacturing facilities around the globe and by the year 2020 will sell its products in over 50 countries. The company is also aiming at achieving an annual turnover of Rs 60,000 crore from the present Rs 25,000 crore.

Further, the auto major is aiming to achieve an EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin of 20 per cent, he said adding the company would launch products developed 100 per cent in India in the next few years.

The company has been selling products developed through technical tie-ups with Honda earlier and now with the US-based EBR.

“The idea of tying up with such companies is to get technologies in place and develop 100 per cent indigenous products from India. Give us few years, we will do it,’’ Munjal said.

DoT examining proposal of taking fingerprint for new SIM card
Tribune News Service

New Delhi, August 8
The increasing security concerns by the country’s security agencies may force the telecom companies to take fingerprints or other biometric records of subscribers in future. This was disclosed by Minister of State for Communications and IT Milind Deora in a written reply to a question in the Lok Sabha yesterday.

He said the DoT was examining the proposal sent by the Home Ministry, which seeks making compulsory for mobile operators to take fingerprints or any other biometric feature of the subscriber at the time of receiving application for a new mobile connection.

The Home Ministry has also sought maintaining of a central database by the DoT of all subscribers on the same parameters as that of biometric parameters akin to the 'Aadhaar' system.

Deora said, "As per the proposal, it would entail taking fingerprint/thumb impression or any other unique biometric feature of the subscriber when he/she applies for a mobile connection".

He added the suggestion "is presently being examined by the DoT and decision on the same is yet to be taken".

Country’s security agencies have been repeatedly raising concerns with the Home Ministry about the loopholes being exploited by the subversive elements in the rules for issuing SIM cards for mobile phones.

In an attempt to strengthen rules for taking a new mobile connection, the DoT had last year come out with tough guidelines which called for physical verification of facts provided by the subscriber.

The guidelines also made operators responsible for inaccurate information provided by subscribers for taking new pre-paid and post-paid mobile connections.

The new rules specify that the authorised person selling SIM cards would have to give an undertaking that he has seen the applicant and matched the photograph attached on the application form.

Retailers and franchisees selling mobile SIM cards have to register police complaint against subscribers if they submit forged documents to get the connections. Seeking fingerprints or a biometric record would only go further in strengthening the rules surrounding the issuing of SIM cards to unwanted elements.

CAG: Imprudent decisions by 4 insurers caused Rs 122-cr loss

New Delhi, August 8
Four state-run insurers, including National Insurance and Oriental Insurance, suffered loss of Rs 121.81 crore due to their "imprudent" decision to enter into business pact with private player Star Health and Allied Insurance Company, official auditor CAG said today.

National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company suffered loss during the four-year period ending June 2012, said the CAG report, tabled in Parliament. — PTI

Jet Airways posts net loss of Rs 355 cr in Q1

Mumbai, August 8
Jet Airways today reported a net loss of Rs 355.38 crore for the first quarter ended June 30, 2013, compared to a profit of Rs 24.7 crore in the same period a year ago. This is Jet's second consecutive quarterly loss.

Total income from operations declined to Rs 4,005.15 crore in the June quarter from Rs 4,587.27 crore in the year-ago period, the company said.

Adani Enterprises in the red

Hit by mark-to-market losses on account of rupee depreciation, Adani Enterprises has plunged into a consolidated net loss of Rs 278.30 crore during the first quarter ended June 30, 2013.

The flagship firm of the Adani group had posted a net profit of Rs 402.88 crore in the corresponding quarter of the previous fiscal.

Its consolidated net sales, at Rs 11,524.94 crore, was up 4.54 per cent during the quarter vis-a-vis Rs 11,024.59 crore of the Q1 FY13.

GE Shipping profit up 35%

Great Eastern (GE) Shipping today reported a 35.36 per cent rise in its consolidated net profit to Rs 244.98 crore for the quarter ended June 30, 2013, largely due to lower operating costs and decline in interest outgo.

Besides, the company Board today also approved buyback of shares "up to an aggregate amount of Rs 279 crore, being 5.53 per cent of the total paid-up equity capital plus free reserves" at a maximum price of Rs 279 per share, GE Shipping said.

Its total income from operations, however, declined by 8.75 per cent to Rs 736.42 crore during the quarter vis-a-vis Rs 807.02 crore of the Q1 FY'13. — PTI