27 Feb 2009, 0725 hrs IST
Promoter groups have pledged more than 90% of their holdings in 27 companies, shows an ETIG study based on disclosures made by 467 listed firms Well-known listed companies in this category include Kirloskar Electric, JP Hydropower, ERA Infra Engineering and Micro Inks.
Promoters of another 38 companies, including realty firms Unitech and Parsvnath besides other large firms such as Tata Teleservices (Maharashtra) and India Cements Capital, have pledged over 70% of their holding in the company. When the promoter group pledges a high proportion of its shares , the firm is potentially vulnerable to a management change. However, so far there are just three cases, including Satyam, with promoters actually losing control due to share pledging.
In the case of Satyam, former chairman B Ramalinga Raju had got the IT firm’s board to approve purchasing of a company owned by his family at a phenomenal valuation. This was done at a time when almost his entire stakeholding was pledged. Following the Satyam case, market regulator Sebi has made it mandatory for listed companies to disclose details of pledged shares.
“Usually a lender gives a loan worth 60% of the value of shares and if the share price falls, a margin call is triggered. There is a risk of management change if the quantum of shares pledged is high,” says Prithvi Haldea of Prime Database, an independent market research firm. He points out that some promoters may even be tempted to manipulate profits of the company to keep the share prices inflated and avoid triggering selling of shares.
Promoters of a quarter of all the companies in the study have pledged more than half of their total stake. Most haven’t disclosed either the object or the institutions with which shares have been pledged. Shares owned by promoters are pledged either for their personal borrowings or as a collateral with banks and other financial institutions against borrowings by the company.
If the value of shares drops significantly, as is the case currently, banks ask for more shares or some other collateral. If the firm or the promoter fails to furnish the extra amount, the lenders can sell the shares in the market. Some firms, however, say there is not a significant risk of selling such shares in the market.
Consider JP Hydropower, where promoters have pledged around 59% of their total 63% in the company. “These pledged shares are only secondary securities. The primary security is the project for which finance is made available,” says a senior executive of JP Hydropower.
Moreover, these shares are not really linked to market prices and do not trigger margin call, as they are meant to ensure lenders have control over the company in case of a default. JP Hydro shares were pledged before it was listed. “There is definitely a case for more disclosure, which will bring in more transparency in the way promoters and companies function,” says Gagan Banga, CEO of Indiabulls Financial Services, an NBFC with which many promoters have pledged shares.
Mr Haldea says these are early days. “We will learn lessons as we go along. It’s debatable if companies need to disclose the object, name of lenders and even use of funds. But the focus should only be on disclosures that are relevant and useful for investors.”
There are also firms where one of the co-promoters has pledged a large part of his stake. So, even though the proportion of pledged shares of the total promoter holding is not significant, if margin calls are triggered it could see one of the co-promoters losing part control of the company.
One such example is UTV Software in which original Indian promoter group has pledged 22.7% out of 23.3% held in the company. But the majority stake in the firm is now owned by Walt Disney (59.9%) and as a result, percentage of the promoter group holding pledged would not be significant.
Among the companies, where large part of promoter’s stake is pledged, there is another set of firms where the total shares pledged is a significant proportion of the total paid up capital. Those companies include India Cements Capital, Satra Properties (India) and Micro Inks.
via: E.T
Thursday, February 26, 2009
USFDA for independent audit in Ranbaxy probe
Press Trust of India / New Delhi/washington February 26, 2009, 16:40 IST
US health regulator Food and Drug Administration has said it may seek third-party audit for drug applications from Ranbaxy's Paonta Sahib plant in Himachal Pradesh, as it has found evidence of falsified data and test results in them.
Five months after banning import of Ranbaxy's 30 drugs to the US, the regulator said in a statement late last night that it was taking "new regulatory action against Ranbaxy's Paonta Sahib plant in India" and has halted review of drug applications from the plant due to evidence on falsified data.
"To address the falsified data, the FDA has invoked its Application Integrity Policy (AIP) against the Paonta Sahib facility," it said.
Under AIP, the regulator may implement a Corrective Action Operating Plan (CAOP), which FDA said, might include seeking a third-party independent audit of drug applications associated with the plant.
The AIP is invoked when a company's actions raise significant questions about the integrity of data in drug applications. Under the AIP, FDA has asked Ranbaxy to cooperate with the agency in resolving the questions of data integrity and reliability.
Ranbaxy said separately in a statement that it would continue to cooperate with the USFDA.
US health regulator Food and Drug Administration has said it may seek third-party audit for drug applications from Ranbaxy's Paonta Sahib plant in Himachal Pradesh, as it has found evidence of falsified data and test results in them.
Five months after banning import of Ranbaxy's 30 drugs to the US, the regulator said in a statement late last night that it was taking "new regulatory action against Ranbaxy's Paonta Sahib plant in India" and has halted review of drug applications from the plant due to evidence on falsified data.
"To address the falsified data, the FDA has invoked its Application Integrity Policy (AIP) against the Paonta Sahib facility," it said.
Under AIP, the regulator may implement a Corrective Action Operating Plan (CAOP), which FDA said, might include seeking a third-party independent audit of drug applications associated with the plant.
The AIP is invoked when a company's actions raise significant questions about the integrity of data in drug applications. Under the AIP, FDA has asked Ranbaxy to cooperate with the agency in resolving the questions of data integrity and reliability.
Ranbaxy said separately in a statement that it would continue to cooperate with the USFDA.
Diamond Cables To Issue Bonus Shares
Diamond Cables Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 06, 2009, inter alia, to consider the issue of the Bonus Shares.
Hind Dorr Oliver-Bags Order For Rs 441 crore, Book rises to Rs 1000
Posted by: "Maverick"
Tue Feb 24, 2009 10:46 pm (PST)
Hindustan Dorr-Oliver Ltd has informed the Exchange that: "The Company has bagged a prestigious order for Uranium Ore Processing Plant from Uranium Corporation of India Ltd.(UCIL) worth Rs. 441 crores for their Greenfiled Ore Mining and Processing facility of capacity 3000 MTPD coming up at Tumalapalle in Andhra Pradesh on LSTK basis. The process plant shall adopt innovative Alkali Pressure Leaching process technology which will be used in India for the first time and M/s Bateman of South Africa are Company's Technology partners for this project. Execution of the above project shall be completed within a period of twenty two months.
sOURCE: From another Forum
Tue Feb 24, 2009 10:46 pm (PST)
Hindustan Dorr-Oliver Ltd has informed the Exchange that: "The Company has bagged a prestigious order for Uranium Ore Processing Plant from Uranium Corporation of India Ltd.(UCIL) worth Rs. 441 crores for their Greenfiled Ore Mining and Processing facility of capacity 3000 MTPD coming up at Tumalapalle in Andhra Pradesh on LSTK basis. The process plant shall adopt innovative Alkali Pressure Leaching process technology which will be used in India for the first time and M/s Bateman of South Africa are Company's Technology partners for this project. Execution of the above project shall be completed within a period of twenty two months.
sOURCE: From another Forum
Hindustan Dorr extends gains on order win
26 Feb 2009, 1608 hrs IST, ET Bureau
MUMBAI: Shares of Hindustan Dorr-Oliver stretched gains to Thursday, after the company Wednesday said it received an order worth Rs: 441 crs from uranium Corporation of India. The new order is significant, as the company’s existing order book is roughly Rs 700 crore.
IL&FS Investsmart, earlier this month, initiated coverage on the stock with a ‘buy’ rating and price target of Rs 55, citing healthy order book and business diversification as some of the key reasons. The report was prior to the company winning the order from Uranium Corporation.
“We believe that HDO has all characteristics to graduate to the next league and therefore the concerns reflected in the stock price is unwarranted,” the brokerage said.
At 3:25 pm on Thursday, the stock, which has risen 30% since Wednesday, was at Rs 34, up 7.1%.
MUMBAI: Shares of Hindustan Dorr-Oliver stretched gains to Thursday, after the company Wednesday said it received an order worth Rs: 441 crs from uranium Corporation of India. The new order is significant, as the company’s existing order book is roughly Rs 700 crore.
IL&FS Investsmart, earlier this month, initiated coverage on the stock with a ‘buy’ rating and price target of Rs 55, citing healthy order book and business diversification as some of the key reasons. The report was prior to the company winning the order from Uranium Corporation.
“We believe that HDO has all characteristics to graduate to the next league and therefore the concerns reflected in the stock price is unwarranted,” the brokerage said.
At 3:25 pm on Thursday, the stock, which has risen 30% since Wednesday, was at Rs 34, up 7.1%.
Short covering, Europe rebound lifts Nifty in last leg
26 Feb 2009, 1735 hrs IST,
Indian equity benchmarks pared losses in the last half hour of trade Thursday to end higher as traders settled F&O February series.Positive opening of European markets and higher US index futures also boosted sentiments. Auto and oil&gas stocks led the upmove while banks and realty ended lower.
The indices failed to break psychological levels and retreated as profit booking set in. National Stock Exchange’s Nifty ended at 2785.65, up 23.15 points or 0.84 per cent. The broader index fell short of breaking the 2800 mark as it retreated from an intra-day high of 2797.80. It touched a low of 2731.90.
Bombay Stock Exchange’s Sensex ended at 8954.86, up 52.30 points or 0.59 per cent. The index failed to cross 9000 as it slipped after touching an intra-day high of 8998.31. The 30-share index hit a low of 8788.32 in the day.
“The spurt towards the close was mainly due to short covering due to expiry. Positive opening of European markets also helped. But there is a general feeling that markets may declined in March and so most traders have gone short. One should be cautious next month as the view is bearish,” said Rajesh Baheti, managing director, Crossseas Capital Services.
The BSE Midcap Index ended up 0.09 per cent but BSE Smallcap Index slipped 0.70 per cent.
Several scrips including largecaps reacted to newsflow. Ranbaxy Laboratories was under pressure after the US FDA said the company falsified data and test results in its drug applications, prompting it to take necessary actions. The US regulator said in a statement that it has taken "new regulatory action against Ranbaxy’s Paonta Sahib Plant in India" and has halted review of drug applications from plant due to evidence of falsified data.
HDFC has been on a decline ever since the mortgage giant decided to charge its customers up to 3% of the outstanding loan, if they decide the prepay their loans by switching over to another bank. The home loan giant’s move is aimed at discouraging customers from switching over to State Bank of India, which has recently launched a special scheme with an offer of 8% interest on all home loans for the first year.
Shares of Tata Motors shot up on reports the company will launch its most awaited low-cost car, Nano, in March. The launch, in Mumbai, is scheduled on March 23. The car drew global attention for being cheapest car at Rs 100,000.
The top Nifty gainers were Tata Motors (7.03%), Grasim (4.05%), Maruti (4.04%), Hero Honda (3.48%) and Cipla (2.97%).
Ranbaxy Laboratories (-18.05%), Punjab National Bank (-5.04%), ICICI Bank (-4.62%), Reliance Capital (-4.08%) and BPCL (-4.01%) were the major index losers.
Amongst non-index stocks, Hindustan Dorr-Oliver ended 7.57 per cent higher after the company received order worth Rs 441 crore from Uranium Corporation of India. The new order is significant, as the company’s existing order book is Rs 700 crore.
Seamec was locked at the 20 per cent upper circuit after the company posted a turnaround in earnings for the fourth quarter. The company Tuesday posted a net profit of Rs 54.57 crore for the December quarter of 2008, against a net loss of Rs 15.88 crore in the same quarter a year ago. The stock has surged 42.71 per cent in the past one week.
On the data front, Indian economy is forecast to have grown 6.2 per cent in October-December from a year earlier, according to media poll. Traders will keep an eye on GDP growth announcement Friday. The economy grew 7.6 per cent in the September quarter and 7.9 per cent in the June quarter.
Elsewhere, shares in Europe continued to move higher but were off early highs after markets welcomed UK government’s insurance scheme for banks' assets. At 5:15 pm IST, FTSE 100 was up 1.06 per cent, CAC 40 moved 0.76 per cent higher and DAX gained 1.01 per cent. US stock futures also indicated a positive opening. Dow Jones was up 1.02 per cent, S&P 500 higher by 1.16 per cent and Nasdaq futures were up 1.28 per cent.
via E.T
Indian equity benchmarks pared losses in the last half hour of trade Thursday to end higher as traders settled F&O February series.Positive opening of European markets and higher US index futures also boosted sentiments. Auto and oil&gas stocks led the upmove while banks and realty ended lower.
The indices failed to break psychological levels and retreated as profit booking set in. National Stock Exchange’s Nifty ended at 2785.65, up 23.15 points or 0.84 per cent. The broader index fell short of breaking the 2800 mark as it retreated from an intra-day high of 2797.80. It touched a low of 2731.90.
Bombay Stock Exchange’s Sensex ended at 8954.86, up 52.30 points or 0.59 per cent. The index failed to cross 9000 as it slipped after touching an intra-day high of 8998.31. The 30-share index hit a low of 8788.32 in the day.
“The spurt towards the close was mainly due to short covering due to expiry. Positive opening of European markets also helped. But there is a general feeling that markets may declined in March and so most traders have gone short. One should be cautious next month as the view is bearish,” said Rajesh Baheti, managing director, Crossseas Capital Services.
The BSE Midcap Index ended up 0.09 per cent but BSE Smallcap Index slipped 0.70 per cent.
Several scrips including largecaps reacted to newsflow. Ranbaxy Laboratories was under pressure after the US FDA said the company falsified data and test results in its drug applications, prompting it to take necessary actions. The US regulator said in a statement that it has taken "new regulatory action against Ranbaxy’s Paonta Sahib Plant in India" and has halted review of drug applications from plant due to evidence of falsified data.
HDFC has been on a decline ever since the mortgage giant decided to charge its customers up to 3% of the outstanding loan, if they decide the prepay their loans by switching over to another bank. The home loan giant’s move is aimed at discouraging customers from switching over to State Bank of India, which has recently launched a special scheme with an offer of 8% interest on all home loans for the first year.
Shares of Tata Motors shot up on reports the company will launch its most awaited low-cost car, Nano, in March. The launch, in Mumbai, is scheduled on March 23. The car drew global attention for being cheapest car at Rs 100,000.
The top Nifty gainers were Tata Motors (7.03%), Grasim (4.05%), Maruti (4.04%), Hero Honda (3.48%) and Cipla (2.97%).
Ranbaxy Laboratories (-18.05%), Punjab National Bank (-5.04%), ICICI Bank (-4.62%), Reliance Capital (-4.08%) and BPCL (-4.01%) were the major index losers.
Amongst non-index stocks, Hindustan Dorr-Oliver ended 7.57 per cent higher after the company received order worth Rs 441 crore from Uranium Corporation of India. The new order is significant, as the company’s existing order book is Rs 700 crore.
Seamec was locked at the 20 per cent upper circuit after the company posted a turnaround in earnings for the fourth quarter. The company Tuesday posted a net profit of Rs 54.57 crore for the December quarter of 2008, against a net loss of Rs 15.88 crore in the same quarter a year ago. The stock has surged 42.71 per cent in the past one week.
On the data front, Indian economy is forecast to have grown 6.2 per cent in October-December from a year earlier, according to media poll. Traders will keep an eye on GDP growth announcement Friday. The economy grew 7.6 per cent in the September quarter and 7.9 per cent in the June quarter.
Elsewhere, shares in Europe continued to move higher but were off early highs after markets welcomed UK government’s insurance scheme for banks' assets. At 5:15 pm IST, FTSE 100 was up 1.06 per cent, CAC 40 moved 0.76 per cent higher and DAX gained 1.01 per cent. US stock futures also indicated a positive opening. Dow Jones was up 1.02 per cent, S&P 500 higher by 1.16 per cent and Nasdaq futures were up 1.28 per cent.
via E.T
Tuesday, February 24, 2009
Third stimulus: Govt cuts excise, service tax by addl 2%
February 24, 2009, 15:17 IST, BS Report
Finance Minister Pranab Mukherjee today announced an across-the-board cut in excise and service tax rates, as a part of the third stimulus package to boost the domestic economy.
In his reply to the interim budget speech, Mukherjee announced a two percentage point cut in service tax rates to 10 per cent.
Mukherjee also announced that on goods that attract 10 per cent excise duty will now be charged at 8 per cent. However, excise rates on items that attract 8 per cent and 4 per cent excise duty will not be changed.
The cut in excise duty have been extended beyond March 31, 2009. But Mukherjee did not specify the date till which the excise cut has been extended.
Excise duty on bulk cement has been fixed at 8 per cent or Rs 230 per tonne.
Mukherjee announced that customs duty exemption on Naptha will continue beyond March 31, 2009.
VIA: B.S
Finance Minister Pranab Mukherjee today announced an across-the-board cut in excise and service tax rates, as a part of the third stimulus package to boost the domestic economy.
In his reply to the interim budget speech, Mukherjee announced a two percentage point cut in service tax rates to 10 per cent.
Mukherjee also announced that on goods that attract 10 per cent excise duty will now be charged at 8 per cent. However, excise rates on items that attract 8 per cent and 4 per cent excise duty will not be changed.
The cut in excise duty have been extended beyond March 31, 2009. But Mukherjee did not specify the date till which the excise cut has been extended.
Excise duty on bulk cement has been fixed at 8 per cent or Rs 230 per tonne.
Mukherjee announced that customs duty exemption on Naptha will continue beyond March 31, 2009.
VIA: B.S
DLF cuts prices in Chennai by up to Rs 13 lakh
Press Trust of India / New Delhi February 24, 2009, 17:58 IST
Realty giant DLF today announced up to Rs 13 lakh cut in the prices for the existing and new customers of its residential project in Chennai on account of fall in input costs and slump in property demand.
The company's decision to cut rates up to 19 per cent in the 53-acre Chennai project has come on the heels of similar reductions in affordable housing projects in Hyderabad and Bangalore.
"The unprecedented events in the global economy have affected the realty sector in the country, bringing quantum changes in raw material cost, home loan rates and property values. Considering this, we are extending Superior value proposition to our existing customers," DLF spokesperson said.
DLF Vice Chairman Rajiv Singh had said last month that the company would reduce its property prices by 15 per cent to beat its falling sales.
"The reduction in prices would benefit customers between Rs 3.5 lakh and Rs 13 lakh per unit depending upon the size of an apartment," the spokesperson said.
The affordable housing project in Chennai, comprising 3,500 units, was launched last year. The company has so far sold 2,000 units costing between Rs 2,800 and Rs 3,200 per sq ft.
via:B.S
Realty giant DLF today announced up to Rs 13 lakh cut in the prices for the existing and new customers of its residential project in Chennai on account of fall in input costs and slump in property demand.
The company's decision to cut rates up to 19 per cent in the 53-acre Chennai project has come on the heels of similar reductions in affordable housing projects in Hyderabad and Bangalore.
"The unprecedented events in the global economy have affected the realty sector in the country, bringing quantum changes in raw material cost, home loan rates and property values. Considering this, we are extending Superior value proposition to our existing customers," DLF spokesperson said.
DLF Vice Chairman Rajiv Singh had said last month that the company would reduce its property prices by 15 per cent to beat its falling sales.
"The reduction in prices would benefit customers between Rs 3.5 lakh and Rs 13 lakh per unit depending upon the size of an apartment," the spokesperson said.
The affordable housing project in Chennai, comprising 3,500 units, was launched last year. The company has so far sold 2,000 units costing between Rs 2,800 and Rs 3,200 per sq ft.
via:B.S
Sensex shrugs off S&P rating,indirect tax cut
24 Feb 2009, 1544 hrs IST, ET Bureau
Indian benchmarks ended volatile session flat ahead of February F&O series discounting Standard & Poor’s negative credit rating outlook on India and indirect tax cuts by the government.
The Finance minister Pranab Mukherjee reduced excise duty by two per cent while the general excise duty was reduced 8 per cent from 10 per cent. The rate of service tax was cut from 12 per cent to 10 per cent. Four per cent excise cut announced earlier in the stimulus package in December will continue beyond March 31. Duty on bulk cement was reduced from 10 per cent to 8 per cent.
Standard & Poor's has revised India's sovereign credit rating outlook to negative from stable. At the same time, Standard & Poor's affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India, which are investment grade ratings. The rating agency has justified its stance on the grounds that India's fiscal position has deteriorated to a level that is unsustainable in the medium term.
Bombay Stock Exchange’s Sensex was at 8810.49, down 32.72 points or 0.37 per cent. The 30-share index slipped after touching an intra-day high of 8856.52. It touched an intra-day low of 8619.22.
National Stock Exchange’s Nifty closed at 2733.90, down 2.55 points or 0.20 per cent. The broader index touched a high of 2740.15 and low of 2677.55.
Second rung stocks continued to remain under pressure. BSE Midcap Index was down 1.83 per cent and BSE Smallcap Index slipped 1.38 per cent.
BSE Metal Index was down 2.54 per cent, BSE Bankex was down 1.44 per cent and BSE Capital Goods Index fell 0.62 per cent.
Biggest Sensex gainers were Mahindra & Mahindra (4.96%), Ranbaxy Laboratories (3.85%), Grasim Industries (2.81%), DLF (1.81%) and Reliance Communications (1.55%).
Tata Steel (-5%), HDFC (-4.78%), Sun Pharmaceuticals (-2.21%), Sterlite Industries
(-2.13%) and Wipro (-1.86%) were the losers.
Market breadth on BSE remained negative through the day with 1604 declines against 783 advances.
(All the figures are provisional)
via: E.T
Indian benchmarks ended volatile session flat ahead of February F&O series discounting Standard & Poor’s negative credit rating outlook on India and indirect tax cuts by the government.
The Finance minister Pranab Mukherjee reduced excise duty by two per cent while the general excise duty was reduced 8 per cent from 10 per cent. The rate of service tax was cut from 12 per cent to 10 per cent. Four per cent excise cut announced earlier in the stimulus package in December will continue beyond March 31. Duty on bulk cement was reduced from 10 per cent to 8 per cent.
Standard & Poor's has revised India's sovereign credit rating outlook to negative from stable. At the same time, Standard & Poor's affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India, which are investment grade ratings. The rating agency has justified its stance on the grounds that India's fiscal position has deteriorated to a level that is unsustainable in the medium term.
Bombay Stock Exchange’s Sensex was at 8810.49, down 32.72 points or 0.37 per cent. The 30-share index slipped after touching an intra-day high of 8856.52. It touched an intra-day low of 8619.22.
National Stock Exchange’s Nifty closed at 2733.90, down 2.55 points or 0.20 per cent. The broader index touched a high of 2740.15 and low of 2677.55.
Second rung stocks continued to remain under pressure. BSE Midcap Index was down 1.83 per cent and BSE Smallcap Index slipped 1.38 per cent.
BSE Metal Index was down 2.54 per cent, BSE Bankex was down 1.44 per cent and BSE Capital Goods Index fell 0.62 per cent.
Biggest Sensex gainers were Mahindra & Mahindra (4.96%), Ranbaxy Laboratories (3.85%), Grasim Industries (2.81%), DLF (1.81%) and Reliance Communications (1.55%).
Tata Steel (-5%), HDFC (-4.78%), Sun Pharmaceuticals (-2.21%), Sterlite Industries
(-2.13%) and Wipro (-1.86%) were the losers.
Market breadth on BSE remained negative through the day with 1604 declines against 783 advances.
(All the figures are provisional)
via: E.T
Monday, February 23, 2009
MTNL, DLF among 150 cos inspected by MCA
23 Feb 2009, 1818 hrs IST, PTI
NEW DELHI: The government-owned Mahanagar Telecom Nigam Ltd (MTNL) and real estate major DLF figure in the list of 150 companies in which the government has ordered inspection of books of accounts after receiving complaints from certain quarters.
Of the four regions- east, west, north and south- there are 14 listed companies from the northern region apart from 51 unlisted companies. They include Ansal Housing and Construction, Cyber Media India, Triveni Infrastructure development company, Eicher Motors, Bhushan Steels Ltd among others, official sources said.
Various pharma companies too figure in the list including Novartis India Ltd, Glenmark Pharmaceuticals, J B Chemicals and Pharmaceuticals, the sources added.
The government had ordered inspection under section 209 A in the accounts of these companies after receiving certain complaints and adverse remarks from auditors in certain cases. It had also ordered probe in six public sector units after receiving adverse qualifications from their auditors.
Section 209 A of the Companies Act, 1956, allows the registrar of companies (RoC), directors or members to inspect the accounts of the company.
NEW DELHI: The government-owned Mahanagar Telecom Nigam Ltd (MTNL) and real estate major DLF figure in the list of 150 companies in which the government has ordered inspection of books of accounts after receiving complaints from certain quarters.
Of the four regions- east, west, north and south- there are 14 listed companies from the northern region apart from 51 unlisted companies. They include Ansal Housing and Construction, Cyber Media India, Triveni Infrastructure development company, Eicher Motors, Bhushan Steels Ltd among others, official sources said.
Various pharma companies too figure in the list including Novartis India Ltd, Glenmark Pharmaceuticals, J B Chemicals and Pharmaceuticals, the sources added.
The government had ordered inspection under section 209 A in the accounts of these companies after receiving certain complaints and adverse remarks from auditors in certain cases. It had also ordered probe in six public sector units after receiving adverse qualifications from their auditors.
Section 209 A of the Companies Act, 1956, allows the registrar of companies (RoC), directors or members to inspect the accounts of the company.
Consolidated Finvest, Jindal Powertech rework merger ratio
23 Feb 2009, 1311 hrs IST, ET Bureau
MUMBAI: The Composite Scheme of Arrangement between Consolidated Finvest & Holdings Ltd, Jindal India Finvest & Holdings Ltd and Jindal India power tech Ltd has been approved by the shareholders and still pending with the high court for sanction.
Since, Jindal Powertech was in urgent need of money , the board has called Rs. 2 per share from its shareholders making its paid up Share of Rs. 4 per share. Following this, Consolidated Finvest and Jindal Powertech have decided to amend the ratio or merger between the two from 5:1 to 2.5:1.
MUMBAI: The Composite Scheme of Arrangement between Consolidated Finvest & Holdings Ltd, Jindal India Finvest & Holdings Ltd and Jindal India power tech Ltd has been approved by the shareholders and still pending with the high court for sanction.
Since, Jindal Powertech was in urgent need of money , the board has called Rs. 2 per share from its shareholders making its paid up Share of Rs. 4 per share. Following this, Consolidated Finvest and Jindal Powertech have decided to amend the ratio or merger between the two from 5:1 to 2.5:1.
Friday, February 20, 2009
India's fiscal deficit to be highest: Goldman
20 Feb 2009, 1945 hrs IST, PTI
India's fiscal deficit, including the Centre and states, would be among the highest in the world and likely to be 10.3 per cent of GDP in the current fiscal and 10 per cent in the next fiscal, financial services firm Goldman Sachs said on Friday.
The deficit would not come down substantially over the next few years due to increase in spending, especially on higher wages and unemployment benefits as well as a large increase in the government’s interest burden, it said in a research report.
It further said that the country's interim budget envisages a large increase in central government spending, both in current and next fiscal, making the central deficit rise to 6 per cent of GDP in 2008-09 and 5.5 per cent in the next fiscal.
The gains from a reduction in commodity prices and therefore in the subsidy bill, will be more than neutralised due to substantially weaker revenues and election-related spending pressures, it added.
The report further said the government stimulus measures came at an right time for the rapidly slowing economy, but the government spending may be permanently increased.
The government's borrowing program will also rise dramatically to a budget estimate of USD 65 billion in 2009-10 from USD 28 billion in 2008-09, and will likely remain at elevated levels, it added.
via:E.T
India's fiscal deficit, including the Centre and states, would be among the highest in the world and likely to be 10.3 per cent of GDP in the current fiscal and 10 per cent in the next fiscal, financial services firm Goldman Sachs said on Friday.
The deficit would not come down substantially over the next few years due to increase in spending, especially on higher wages and unemployment benefits as well as a large increase in the government’s interest burden, it said in a research report.
It further said that the country's interim budget envisages a large increase in central government spending, both in current and next fiscal, making the central deficit rise to 6 per cent of GDP in 2008-09 and 5.5 per cent in the next fiscal.
The gains from a reduction in commodity prices and therefore in the subsidy bill, will be more than neutralised due to substantially weaker revenues and election-related spending pressures, it added.
The report further said the government stimulus measures came at an right time for the rapidly slowing economy, but the government spending may be permanently increased.
The government's borrowing program will also rise dramatically to a budget estimate of USD 65 billion in 2009-10 from USD 28 billion in 2008-09, and will likely remain at elevated levels, it added.
via:E.T
Credit Suisse maintains 'sell' on DLF, target Rs 124
20 Feb 2009, 1620 hrs IST, ET Bureau
MUMBAI: Credit Suisse has maintained 'sell' rating on DLF, while reiterating its cautious outlook on the real estate sector.
According to the investment bank, the New Delhi-based realty major's third quarter results confirmed a significant slowdown in property sales and construction activity in India.
"We push back our medium-term development pipeline projections and lower our property price assumptions," Credit Suisse said in a report.
The investment bank has lowered its earnings per share (EPS) estimates for FY2009-FY2011 by 29%-62% and cut its 12-month target price to Rs 124 from Rs 203.
"We believe the recent strength in the share price, up about 20% from its recent trough post weak 3Q numbers, presents a profit taking opportunity," Credit Suisse said.
The share touched a low of Rs 124.15 on February 4. On Friday, DLF shares ended at 155.05, down Rs 1.30 or 0.83% from Thursday.
via:E.T
MUMBAI: Credit Suisse has maintained 'sell' rating on DLF, while reiterating its cautious outlook on the real estate sector.
According to the investment bank, the New Delhi-based realty major's third quarter results confirmed a significant slowdown in property sales and construction activity in India.
"We push back our medium-term development pipeline projections and lower our property price assumptions," Credit Suisse said in a report.
The investment bank has lowered its earnings per share (EPS) estimates for FY2009-FY2011 by 29%-62% and cut its 12-month target price to Rs 124 from Rs 203.
"We believe the recent strength in the share price, up about 20% from its recent trough post weak 3Q numbers, presents a profit taking opportunity," Credit Suisse said.
The share touched a low of Rs 124.15 on February 4. On Friday, DLF shares ended at 155.05, down Rs 1.30 or 0.83% from Thursday.
via:E.T
Nifty ends off lows; bounces back from 2700
20 Feb 2009,
Indian equities ended sharply lower on Friday but off lows as traders covered shorts at crucial support levels. Banks , IT and metals ended with maximum losses.
National Stock Exchange’s Nifty closed at 2745.40, down 43.95 points or 1.58 per cent. The index held on to its major support of 2700 and bounced back from lows of 2709.30.
Bombay Stock Exchange’s Sensex was at 8850.02, down 192.61 points or 2.13 per cent. The 30-share index hit an intra-day low of 8762.58 and a high of 8943.78.
BSE Midcap Index was down 1.56 per cent and BSE Smallcap Index slipped 1.60 per cent.
Amongst the sectoral indices, BSE Bankex was down 3.32 per cent, BSE IT Index fell 2.67 per cent and BSE Metal Index tripped 2.39 per cent.
Maruti Suzuki (0.76%), ACC (0.44%) and DLF (0.1%) were the only gainers in the 30-share index.
ICICI Bank (-7.03%), Reliance Communications (-4.39%), Mahindra & Mahindra (-3.62%), Tata Consultancy Services (-3.05%) and Reliance Industries (-2.99%) were the losers.
Market breadth was negative on the BSE 1627 declines and 784 advances.
European markets extended losses as FTSE 100 declined 2.84 per cent, DAX fell 3.53 per cent and CAC 40 plunged 3.53 per cent.
(All the figures are provisional)
Indian equities ended sharply lower on Friday but off lows as traders covered shorts at crucial support levels. Banks , IT and metals ended with maximum losses.
National Stock Exchange’s Nifty closed at 2745.40, down 43.95 points or 1.58 per cent. The index held on to its major support of 2700 and bounced back from lows of 2709.30.
Bombay Stock Exchange’s Sensex was at 8850.02, down 192.61 points or 2.13 per cent. The 30-share index hit an intra-day low of 8762.58 and a high of 8943.78.
BSE Midcap Index was down 1.56 per cent and BSE Smallcap Index slipped 1.60 per cent.
Amongst the sectoral indices, BSE Bankex was down 3.32 per cent, BSE IT Index fell 2.67 per cent and BSE Metal Index tripped 2.39 per cent.
Maruti Suzuki (0.76%), ACC (0.44%) and DLF (0.1%) were the only gainers in the 30-share index.
ICICI Bank (-7.03%), Reliance Communications (-4.39%), Mahindra & Mahindra (-3.62%), Tata Consultancy Services (-3.05%) and Reliance Industries (-2.99%) were the losers.
Market breadth was negative on the BSE 1627 declines and 784 advances.
European markets extended losses as FTSE 100 declined 2.84 per cent, DAX fell 3.53 per cent and CAC 40 plunged 3.53 per cent.
(All the figures are provisional)
Thursday, February 19, 2009
Markets end flat
19 Feb 2009
Markets ended on a flat note with buying seen in IT and consumer durable stocks. Easing inflationary figures failed to lift the market morale. India`s benchmark wholesale price index (WPI), inflation dropped to over 14 months low, falling below 4% to stand at 3.92% for the week ended Feb. 7, 2009.
Major gainers amongst the sectoral indices were BSE IT (2.45%), Teck 1.71%) and Consumer Durables (1.12%).
Meanwhile Capital Goods (0.95%), Realty (0.63%) and Bankex (0.56%) featured in the list of laggards.
BSE Midcap and Smallcap ended on a negative note down by 0.21% and 0.37% respectively.
Asian stocks ended positive. as a weaker yen improved the earnings prospects for Japanese exporters and China stepped up measures to bolster its economy. Japanese benchmark index Nikkei gained 23.21 points, or 0.31%, to end at 7,557.65 while China`s Shanghai Composite climbed 17.26 points, or 0.78%, to close at 2,227.12.
European markets edged marginally higher. Germany`s benchmark index DAX rose by 32.49 points or 0.77% to trade at 4,237.45
Meanwhile UK`s benchmark index FTSE 100 and French benchmark index CAC 40 gained over 40% to trade at 4,024.76 and 2,888.12 respectively.
The Sensex ended the day with a gain of 27.45 points, or 0.30% at 9,042.63 after touching a high of 9,111.95 and a low of 8,977.66. The broad-based NSE Nifty climbed 13.20 points, or 0.48% at 2,789.35 after hitting a high of 2,802.15 and a low of 2,767.60.
Major gainers in the 30-share index were Wipro (5.41%), Infosys Technologies (2.50%), Grasim Industries (2.43%), Maruti Suzuki India (2.37%), Housing Development Finance Corporation (2.08%), and Mahindra & Mahindra (1.97%).
On the other hand, Hindalco Industries (3.49%), ACC (2.43%), ICICI Bank (2.13%), Larsen & Toubro (2.05%), Hindustan Unilever (1.66%), and DLF (1.48%) were the biggest losers in the Sensex.
Overall market breadth was marginally negative. Out of the total 2,476 shares traded at BSE, 1,073 advanced, 1,299 declined while 104 remained unchanged.
Markets ended on a flat note with buying seen in IT and consumer durable stocks. Easing inflationary figures failed to lift the market morale. India`s benchmark wholesale price index (WPI), inflation dropped to over 14 months low, falling below 4% to stand at 3.92% for the week ended Feb. 7, 2009.
Major gainers amongst the sectoral indices were BSE IT (2.45%), Teck 1.71%) and Consumer Durables (1.12%).
Meanwhile Capital Goods (0.95%), Realty (0.63%) and Bankex (0.56%) featured in the list of laggards.
BSE Midcap and Smallcap ended on a negative note down by 0.21% and 0.37% respectively.
Asian stocks ended positive. as a weaker yen improved the earnings prospects for Japanese exporters and China stepped up measures to bolster its economy. Japanese benchmark index Nikkei gained 23.21 points, or 0.31%, to end at 7,557.65 while China`s Shanghai Composite climbed 17.26 points, or 0.78%, to close at 2,227.12.
European markets edged marginally higher. Germany`s benchmark index DAX rose by 32.49 points or 0.77% to trade at 4,237.45
Meanwhile UK`s benchmark index FTSE 100 and French benchmark index CAC 40 gained over 40% to trade at 4,024.76 and 2,888.12 respectively.
The Sensex ended the day with a gain of 27.45 points, or 0.30% at 9,042.63 after touching a high of 9,111.95 and a low of 8,977.66. The broad-based NSE Nifty climbed 13.20 points, or 0.48% at 2,789.35 after hitting a high of 2,802.15 and a low of 2,767.60.
Major gainers in the 30-share index were Wipro (5.41%), Infosys Technologies (2.50%), Grasim Industries (2.43%), Maruti Suzuki India (2.37%), Housing Development Finance Corporation (2.08%), and Mahindra & Mahindra (1.97%).
On the other hand, Hindalco Industries (3.49%), ACC (2.43%), ICICI Bank (2.13%), Larsen & Toubro (2.05%), Hindustan Unilever (1.66%), and DLF (1.48%) were the biggest losers in the Sensex.
Overall market breadth was marginally negative. Out of the total 2,476 shares traded at BSE, 1,073 advanced, 1,299 declined while 104 remained unchanged.
Wednesday, February 18, 2009
India could be hit as foreign remittances dry up
18 Feb 2009, 1508 hrs IST, IANS
BANGKOK : India would be among the hardest-hit nations as the remittances sent home by its people working in the Middle East begins to dry up following the economic downturn.
There are an estimated five million Indian migrant workers in six Gulf nations, transferring more than one-fifth of India's total overseas remittances.
While the Ministry of Overseas Indian Affairs insisted the situation is not alarming, there are reports of job losses and wage cuts in the United Arab Emirates and Bahrain during the slump in oil prices and in the construction, real estate and tourism sectors because of the financial crisis.
"Remittances are a catalyst in India's growth as they make up 3 percent of the country's GDP," a ministry official said. "A drop in the figures could act as a drag on the economy."
The Indian consulate in Dubai has said construction firms there had bulk-booked planes next month to fly 20,000 to 30,000 workers home on long leave or to re-deploy them on projects in Gulf nations like Qatar.
An estimated $260 billion of real estate projects are reported to have been delayed or shelved in the Emirates alone. Dubai's construction boom has crashed, sending thousands of workers back home and causing thousands of them to leave cars at the airport that they have stopped payments on.
Over the past three to four years, one of Asia's fastest growing industries has been exporting workers, especially to the oil-driven, construction-crazed economies of the Middle East.
Remittances have become a major contributor to foreign exchange earnings and gross domestic products (GDPs), peaking at an estimated $116 billion in 2008.
This year, the money flows were expected to slow as construction projects are shelved and other jobs dry up in Gulf nations, such Abu Dhabi, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, which have employed up to 13 million foreign workers, 11 million of whom hailed from Asia.
The remittances have saved millions of families from impoverishment and boosted the region's economies.
Last year, remittances to Asia amounted to $8.9 billion for Bangladesh, $27 billion for China, $30 billion for India, $6.5 billion for Indonesia, $2.2 billion for Nepal, $1.8 billion for Malaysia, $7 billion for Pakistan, $16.4 billion for the Philippines, $2.7 billion for Sri Lanka, $5.5 billion for Vietnam and $1.8 billion for Thailand, according to International Labour Organisation estimates.
The inflows accounted for 9.5 percent of Bangladesh's GDP, 2.4 percent of India's, 15.5 percent of Nepal's and 11.6 percent in the Philippines, the UN agency said.
But recession and plummeting oil prices were expected to take a deep bite out of the remittance flow in 2009.
The World Bank estimated remittances from South Asians in the Gulf could decline by nine percent in dollar terms in 2009, compared with a 38 percent increase in the previous year.
Pakistan - with 24 percent of its remittances coming from the US and 56 percent coming from the Gulf - was expecting to be hit in the second half of 2009.
In Nepal, where remittances sustained the economy during the recent years of civil war and political turbulence, fears abound that mass layoffs abroad this year would mean more than economic instability at home.
"If hundreds of thousands of people employed in foreign countries are sent home, it could lead to social problems," Nepalese economist Shankar Sharma said.
In the Philippines, where remittances have been the lifeblood of the economy for decades, the government is looking for new, riskier markets for its chief export: English-speaking labour and managers.
The government is reviewing deployment bans to risky destinations such as Iraq, Lebanon and Nigeria to find alternative jobs for retrenched Filipino workers.
Remittances from Indonesian workers, who are more dependent on the export-driven economies of Malaysia and Singapore, were expected to slump to around $3 billion this year, said Fauzi Ichsan, an economist with Standard Chartered Bank.
The Indonesian government expected that at least 100,000 Indonesian workers in Malaysia would have to return home this year.
In more affluent Asian countries, there is mounting political pressure to send Asian migrant workers home.
Japan, with its exports falling, has been laying off Brazilian workers of Japanese ancestry. Since September, planes to Brazil have been fully booked with returning labourers.
South Korea has promised subsidies to companies that hire only South Korean labourers over foreigners.
Such trends bode ill not just for remittances but also for the employment conditions of the legions of Asian workers desperately seeking jobs in a shrinking market.
"The danger is that migrant workers who invested their meagre assets at home to find work abroad will be laid off first and will seek to stay at whatever cost to try to recoup their investments," said Manolo Abella, chief technical adviser for the International Labour Organisation on labour migration. "Many will become illegal and be vulnerable to abuse."
Via:E.T
BANGKOK : India would be among the hardest-hit nations as the remittances sent home by its people working in the Middle East begins to dry up following the economic downturn.
There are an estimated five million Indian migrant workers in six Gulf nations, transferring more than one-fifth of India's total overseas remittances.
While the Ministry of Overseas Indian Affairs insisted the situation is not alarming, there are reports of job losses and wage cuts in the United Arab Emirates and Bahrain during the slump in oil prices and in the construction, real estate and tourism sectors because of the financial crisis.
"Remittances are a catalyst in India's growth as they make up 3 percent of the country's GDP," a ministry official said. "A drop in the figures could act as a drag on the economy."
The Indian consulate in Dubai has said construction firms there had bulk-booked planes next month to fly 20,000 to 30,000 workers home on long leave or to re-deploy them on projects in Gulf nations like Qatar.
An estimated $260 billion of real estate projects are reported to have been delayed or shelved in the Emirates alone. Dubai's construction boom has crashed, sending thousands of workers back home and causing thousands of them to leave cars at the airport that they have stopped payments on.
Over the past three to four years, one of Asia's fastest growing industries has been exporting workers, especially to the oil-driven, construction-crazed economies of the Middle East.
Remittances have become a major contributor to foreign exchange earnings and gross domestic products (GDPs), peaking at an estimated $116 billion in 2008.
This year, the money flows were expected to slow as construction projects are shelved and other jobs dry up in Gulf nations, such Abu Dhabi, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, which have employed up to 13 million foreign workers, 11 million of whom hailed from Asia.
The remittances have saved millions of families from impoverishment and boosted the region's economies.
Last year, remittances to Asia amounted to $8.9 billion for Bangladesh, $27 billion for China, $30 billion for India, $6.5 billion for Indonesia, $2.2 billion for Nepal, $1.8 billion for Malaysia, $7 billion for Pakistan, $16.4 billion for the Philippines, $2.7 billion for Sri Lanka, $5.5 billion for Vietnam and $1.8 billion for Thailand, according to International Labour Organisation estimates.
The inflows accounted for 9.5 percent of Bangladesh's GDP, 2.4 percent of India's, 15.5 percent of Nepal's and 11.6 percent in the Philippines, the UN agency said.
But recession and plummeting oil prices were expected to take a deep bite out of the remittance flow in 2009.
The World Bank estimated remittances from South Asians in the Gulf could decline by nine percent in dollar terms in 2009, compared with a 38 percent increase in the previous year.
Pakistan - with 24 percent of its remittances coming from the US and 56 percent coming from the Gulf - was expecting to be hit in the second half of 2009.
In Nepal, where remittances sustained the economy during the recent years of civil war and political turbulence, fears abound that mass layoffs abroad this year would mean more than economic instability at home.
"If hundreds of thousands of people employed in foreign countries are sent home, it could lead to social problems," Nepalese economist Shankar Sharma said.
In the Philippines, where remittances have been the lifeblood of the economy for decades, the government is looking for new, riskier markets for its chief export: English-speaking labour and managers.
The government is reviewing deployment bans to risky destinations such as Iraq, Lebanon and Nigeria to find alternative jobs for retrenched Filipino workers.
Remittances from Indonesian workers, who are more dependent on the export-driven economies of Malaysia and Singapore, were expected to slump to around $3 billion this year, said Fauzi Ichsan, an economist with Standard Chartered Bank.
The Indonesian government expected that at least 100,000 Indonesian workers in Malaysia would have to return home this year.
In more affluent Asian countries, there is mounting political pressure to send Asian migrant workers home.
Japan, with its exports falling, has been laying off Brazilian workers of Japanese ancestry. Since September, planes to Brazil have been fully booked with returning labourers.
South Korea has promised subsidies to companies that hire only South Korean labourers over foreigners.
Such trends bode ill not just for remittances but also for the employment conditions of the legions of Asian workers desperately seeking jobs in a shrinking market.
"The danger is that migrant workers who invested their meagre assets at home to find work abroad will be laid off first and will seek to stay at whatever cost to try to recoup their investments," said Manolo Abella, chief technical adviser for the International Labour Organisation on labour migration. "Many will become illegal and be vulnerable to abuse."
Via:E.T
Bata plans to open 240 new outlets by next three years
18 Feb 2009, 2151 hrs IST, Sutanuka, ET Bureau
Shoe major Bata India Ltd is expanding its national footprint in Tier I and Tier II cities. The company, which is a subsidiary of Canadian shoe major Bata Shoe Organisation, on Wednesday announced it will open 40 new retail stores
across the country in the first quarter of 2009.
These new stores will be based on Bata's international format and will have an average size of 3000 sq ft.
These new stores will primarily be located in Tier I and Tier II cities like Sonepat, Kota, Jodhpur, Ludhiana, Kakinada, Berampur, Mandya, Gangtok, Hassan, Hubli, Ahmednagar, Nasik, and others, apart from the metros.
This will help Bata offer its contemporary and trendy footwear range to potential customers in the small towns. These products are currently available in Bata's international format outlets.
Announcing this, Mr Macelo Villagran, managing director at Bata India Ltd said: "Bata India has opened over 150 new large format stores since 2006 and will continue to open 60 new outlets every year.
Our retail expansion plans are aimed at meeting the shoe requirements of our customers across India. We thank our customers for their continued brand loyalty, which has helped us get this recognition from the industry."
Bata India plans to open 240 new outlets across the country over the next three years with an investment commitment of up to Rs 480 crore.
According to the company, the cost of a new outlet would typically vary between Rs 1.5 crore and Rs 2 crore. Further, the company also plans to use the surplus cash for expansion and upgradation of 60 to 80 existing outlets.
Bata is the largest footwear retailer in India with more than 1,200 stores. The company is focusing on manufacturing shoes for defence and paramilitary personnel, as well as airlines and hospitals to increase institutional selling.
The Indian footwear market is pegged at roughly Rs 10,000 crore in value terms and is growing at 10% annually.
Via: E.T
Shoe major Bata India Ltd is expanding its national footprint in Tier I and Tier II cities. The company, which is a subsidiary of Canadian shoe major Bata Shoe Organisation, on Wednesday announced it will open 40 new retail stores
across the country in the first quarter of 2009.
These new stores will be based on Bata's international format and will have an average size of 3000 sq ft.
These new stores will primarily be located in Tier I and Tier II cities like Sonepat, Kota, Jodhpur, Ludhiana, Kakinada, Berampur, Mandya, Gangtok, Hassan, Hubli, Ahmednagar, Nasik, and others, apart from the metros.
This will help Bata offer its contemporary and trendy footwear range to potential customers in the small towns. These products are currently available in Bata's international format outlets.
Announcing this, Mr Macelo Villagran, managing director at Bata India Ltd said: "Bata India has opened over 150 new large format stores since 2006 and will continue to open 60 new outlets every year.
Our retail expansion plans are aimed at meeting the shoe requirements of our customers across India. We thank our customers for their continued brand loyalty, which has helped us get this recognition from the industry."
Bata India plans to open 240 new outlets across the country over the next three years with an investment commitment of up to Rs 480 crore.
According to the company, the cost of a new outlet would typically vary between Rs 1.5 crore and Rs 2 crore. Further, the company also plans to use the surplus cash for expansion and upgradation of 60 to 80 existing outlets.
Bata is the largest footwear retailer in India with more than 1,200 stores. The company is focusing on manufacturing shoes for defence and paramilitary personnel, as well as airlines and hospitals to increase institutional selling.
The Indian footwear market is pegged at roughly Rs 10,000 crore in value terms and is growing at 10% annually.
Via: E.T
Reliance Infra down on reports of ED probe
18 Feb 2009, 1537 hrs IST, ET Bureau & Agencies
MUMBAI: Reliance Infrastructure lost more than 4% on reports that it violated overseas borrowing norms by investing funds raised abroad in the domestic capital market. At 3:21 pm, the stock was at Rs 500.55, down 3.54%. Earlier in the day, it touched a low of Rs 496.25 and later recovered to Rs 529.50. Over 34 lakh shares changed hands on BSE.
According to a Bloomberg report, the violation relates to overseas loans of $360 million raised by Reliance Infrastructure in July 2006. Quoting the junior finance minister Pawan Kumar Bansal, the report said that the Directorate of Enforcement is now examining the violation for necessary action.
The case goes back to April 26, 2007, when the company brought $300 million into India and invested it in debt mutual funds. It then remitted $500 million, including the "proceeds of the $300 million brought into India" in March 2008 to invest in an overseas subsidiary, Mr Bansal said.
The minister said that the country's External Commercial Borrowing (ECB) rules in force at that time required funds raised overseas to be kept outside India until actually needed and they couldn't be used for investing in the capital market.
India's central bank had imposed a penalty of Rs 1.25 billion ($25 million) on the company, the minister said without giving a date. Reliance Infrastructure had "contested" the penalty, according to a Financial Times report on December 24, said the report.
via:E.T
MUMBAI: Reliance Infrastructure lost more than 4% on reports that it violated overseas borrowing norms by investing funds raised abroad in the domestic capital market. At 3:21 pm, the stock was at Rs 500.55, down 3.54%. Earlier in the day, it touched a low of Rs 496.25 and later recovered to Rs 529.50. Over 34 lakh shares changed hands on BSE.
According to a Bloomberg report, the violation relates to overseas loans of $360 million raised by Reliance Infrastructure in July 2006. Quoting the junior finance minister Pawan Kumar Bansal, the report said that the Directorate of Enforcement is now examining the violation for necessary action.
The case goes back to April 26, 2007, when the company brought $300 million into India and invested it in debt mutual funds. It then remitted $500 million, including the "proceeds of the $300 million brought into India" in March 2008 to invest in an overseas subsidiary, Mr Bansal said.
The minister said that the country's External Commercial Borrowing (ECB) rules in force at that time required funds raised overseas to be kept outside India until actually needed and they couldn't be used for investing in the capital market.
India's central bank had imposed a penalty of Rs 1.25 billion ($25 million) on the company, the minister said without giving a date. Reliance Infrastructure had "contested" the penalty, according to a Financial Times report on December 24, said the report.
via:E.T
Tuesday, February 17, 2009
Every Indian to have debt of Rs 30,000 by March 2010
17 Feb 2009, 1900 hrs IST, PTI
NEW DELHI: Viewed from an angle, the average debt of every Indian has been estimated to soar to about Rs 30,000 in about a year with the government stepping up it borrowing programme in the next fiscal to fund public expenditure and stimulate the economy.
The average debt of a citizen would nearly be equal to his 10-month income, which on an annual basis has recently been estimated at Rs 38,000 by the Central Statistical Organisation (CSO) for a population of 115.4 crore.
With the government adding about Rs 3,00,000 crore to the public debt annually in the last few years, the total public debt is estimated to zoom to a whooping Rs 34,06,322 crore by March 2010, nearly double the amount recorded seven years ago.
In order to fight the impact of the global financial meltdown on the Indian economy, the government substantially increased its market borrowing programme in 2008-09.
According to budget papers, as against the target of Rs 1,00,000 crore, the government would end up raising Rs 2,62,000 crore during 2008-09, more than two and a half times the original estimate.
Part of the increase in borrowings can be attributed to the stimulus packages raising expenditure and reducing revenues through slashing duties.
For the next fiscal, the government has pegged the market borrowing target at over Rs 3,00,000 crore, which is expected to be revised upwards at the time of the regular budget in July.
India's public debt includes market borrowings, external debt and other liabilities like small savings and provident funds.
Funds raised through market borrowing programmes and issuing treasury bills account for a major portion of the public debt.
Of the total of Rs 34 lakh crore, about Rs 22.7 lakh crore will be internal debt, the amount raised through the borrowing programme.
The external debt, which comprises funds raised from multilateral and bilateral lending agencies, is expected to be about Rs 1.38 lakh crore by the end of March 2010, while the other liabilities will account for the remaining Rs 10 lakh crore.
NEW DELHI: Viewed from an angle, the average debt of every Indian has been estimated to soar to about Rs 30,000 in about a year with the government stepping up it borrowing programme in the next fiscal to fund public expenditure and stimulate the economy.
The average debt of a citizen would nearly be equal to his 10-month income, which on an annual basis has recently been estimated at Rs 38,000 by the Central Statistical Organisation (CSO) for a population of 115.4 crore.
With the government adding about Rs 3,00,000 crore to the public debt annually in the last few years, the total public debt is estimated to zoom to a whooping Rs 34,06,322 crore by March 2010, nearly double the amount recorded seven years ago.
In order to fight the impact of the global financial meltdown on the Indian economy, the government substantially increased its market borrowing programme in 2008-09.
According to budget papers, as against the target of Rs 1,00,000 crore, the government would end up raising Rs 2,62,000 crore during 2008-09, more than two and a half times the original estimate.
Part of the increase in borrowings can be attributed to the stimulus packages raising expenditure and reducing revenues through slashing duties.
For the next fiscal, the government has pegged the market borrowing target at over Rs 3,00,000 crore, which is expected to be revised upwards at the time of the regular budget in July.
India's public debt includes market borrowings, external debt and other liabilities like small savings and provident funds.
Funds raised through market borrowing programmes and issuing treasury bills account for a major portion of the public debt.
Of the total of Rs 34 lakh crore, about Rs 22.7 lakh crore will be internal debt, the amount raised through the borrowing programme.
The external debt, which comprises funds raised from multilateral and bilateral lending agencies, is expected to be about Rs 1.38 lakh crore by the end of March 2010, while the other liabilities will account for the remaining Rs 10 lakh crore.
Investors continue pull out from India; Asia sees inflows
17 Feb 2009, 1641 hrs IST, PTI
NEW DELHI: Global investors continued their flight from India-focused equity funds for the fourth week in a row, even as inflows into Asia tripled to $219 million in the second week of February, a latest report says.
Net cash taken in by offshore Asian funds tripled week on week to $219 million in the second week of this month, according to data complied by international fund tracking firm EPFR Global.
However, India and Taiwan dedicated funds remained alienated and witnessed redemptions for the consecutive fourth week, with the combined amount rising 20 times from the last week of January.
Global investors pulled out over $22 million within a week from India-focused funds taking their total outflows in the past four week to nearly $52 million, the report revealed.
Besides, Taiwan funds saw an outflow of 17.6 million dollar in the reviewed week.
Inflows into Asia (excluding-Japan) equity funds were broadly based, with Korea, China, Greater China and Hong Kong equity funds all taking in between 40-145 million dollar.
All four of the major emerging markets equity fund groups tracked by EPFR Global recorded modest inflows during the week ended February 12.
NEW DELHI: Global investors continued their flight from India-focused equity funds for the fourth week in a row, even as inflows into Asia tripled to $219 million in the second week of February, a latest report says.
Net cash taken in by offshore Asian funds tripled week on week to $219 million in the second week of this month, according to data complied by international fund tracking firm EPFR Global.
However, India and Taiwan dedicated funds remained alienated and witnessed redemptions for the consecutive fourth week, with the combined amount rising 20 times from the last week of January.
Global investors pulled out over $22 million within a week from India-focused funds taking their total outflows in the past four week to nearly $52 million, the report revealed.
Besides, Taiwan funds saw an outflow of 17.6 million dollar in the reviewed week.
Inflows into Asia (excluding-Japan) equity funds were broadly based, with Korea, China, Greater China and Hong Kong equity funds all taking in between 40-145 million dollar.
All four of the major emerging markets equity fund groups tracked by EPFR Global recorded modest inflows during the week ended February 12.
Sell-off continues; Nifty ends below 2800
17 Feb 2009, 1535 hrs IST,
MUMBAI: Key indices ended in deep red on Tuesday after extending losses for second straight day. Traders unwound positions in sectors like realty, banks and metals space after interim budget turned out to be a non-event. Weakness in global markets also dampened sentiments.
National Stock Exchange’s Nifty ended at 2776.65, down 71.85 points or 2.52 per cent. The broader index bounced back from intra-day lows of 2757.30.
Bombay Stock Exchange’s Sensex ended at 9041.68, down 263.77 points. The index broke the crucial support of 9000 to hit an intra-day low of 8994.34 but crawled back as some buying emerged at lower levels.
None of the stocks from the 30-share index managed to brave the tide.
Tata Steel (-6.85%), Hindalco Industries (-5.19%), DLF (-5.19%), ICICI Bank (-5.11%), Mahindra & Mahindra (-5.1%) and HDFC (-4.83%) dragged the indices lower.
Market breadth on BSE remained extremely weak through the day with 1760 declines outnumbering 619 advances.
(All the figures are provisional)
Via:E.T
MUMBAI: Key indices ended in deep red on Tuesday after extending losses for second straight day. Traders unwound positions in sectors like realty, banks and metals space after interim budget turned out to be a non-event. Weakness in global markets also dampened sentiments.
National Stock Exchange’s Nifty ended at 2776.65, down 71.85 points or 2.52 per cent. The broader index bounced back from intra-day lows of 2757.30.
Bombay Stock Exchange’s Sensex ended at 9041.68, down 263.77 points. The index broke the crucial support of 9000 to hit an intra-day low of 8994.34 but crawled back as some buying emerged at lower levels.
None of the stocks from the 30-share index managed to brave the tide.
Tata Steel (-6.85%), Hindalco Industries (-5.19%), DLF (-5.19%), ICICI Bank (-5.11%), Mahindra & Mahindra (-5.1%) and HDFC (-4.83%) dragged the indices lower.
Market breadth on BSE remained extremely weak through the day with 1760 declines outnumbering 619 advances.
(All the figures are provisional)
Via:E.T
Monday, February 16, 2009
Pranab Mukherjee presents Budget 2009-10
No election goodies, no major changes in prices.
Highlights
Rs 11,842 cr allocated to Jawahar Nehru Urban Renewal Mission
Food, fertiliser, petroleum subsidies to go up
Allocation of Rs 14,1703 cr for defence sector
Rs 4,900 cr allocated to Bharat Nirman Scheme
Rs 8,300 cr for mid-day meal scheme
Rs 1,200 crore for Total Sanitation Programme
Rs 6705 cr allocated for child development schemes
Tax collections in 2008-09 to exceed that of 2007-08
FY09 fiscal deficit seen at 6% of GDP vs 2.5 %
Tax collections down by Rs 60,000 crore over estimates
Plan expenditure revised to 3 lakh crore
Revenue deficit revisied at 4.4% of GDP
Custom duties rates steadily reduced in UPA rule
Tax collection to increase in 2008-09
Govt expenditure estimate revised to over 9 lakh crores
Pranab Mukherjee resumes Interim Budget speech
Kerala MP falls ill; session adjourned for 10 minutes
Part of NIF proceeds also to be used for capital investment
PSU turnover up 84%
Centre has pumped in Rs 652 cr into Regional Rural Banks
Personal Income tax structure has been rationalised
Tax rates must fall during the time of crisis
Turnover of PSUs rose by 84% in 2003-08
Young widows to get priority in ITI admissions
The RIDA corpus was hiked from Rs 5,500 to Rs 14,000 cr
Indira Gandhi National Widow Pension Scheme for widows
Govt to provide subsidy to farmers in 2009-10
Six new IITs started in 2008-09
Educational loan schemes revised
2 new IITs in MP and Rajasthan in 2009-10
Rs 65,300 crore in loans loans waived off for farmers
Industrial production fell by 2 pct in 2008 on a YoY basis
Govt took prompt stimulus packages to curb slowdown
Allocation to agriculture increased by 300%
Outlay for higher education increased 900 per cent
Govt took prompt stimulus packages to curb slowdown
Govt approved 37 infrastructure projects
Tax to GDP ration risen by 12.5%
60.12 lakh houses built under Indira Awaas Yojna
Highest priority to rural development
Per Capita income grew by 7.4% in UPA regimen
Agri revival package implemented in 25 states
Employment generation schemes to be expanded
Economic growth has to be sustainable and inclusive
Manufacturing and agriculture sector are the growth drivers
FRPM targets being relaxed
Export growth for the first 9 months of the current year down to 17.1%
Export growth slowed down to 17.1% for the last 9 months
Export growth at 26.4% annually in the last 4 years
Government has approved 37 new infrastructure projects
Serious chocking of credit due to global downturn
Export growth at 26.4% annually in the last 4 years
India second fastest growing economy at 7.1% growth
Agriculture annual growth rate 3.7%
Savings rate up to 30.7% in 2008
Farmers real heroes of our success story
Investment rate has grown to 39%
Fiscal deficit down by 2.7%
Focus to maintain growth rate of 7-8%
After a popular Railway Budget by Rail Minister Lalu Prasad Yadav, the government is all set to present the Interim Budget. Ahead of the general elections, UPA government's interim Budget is likely to provide more focus on sectors like rural development and infrastructure facilities like roads and ports.
Highlights of Railway Budget - 22% more capacity in passenger trains. Two per cent fare cut across the board. 43 new trains to be introduced in FY-2010.
With the government focusing on ways to battle slowdown by providing stimulus to the industry, some of the sectors like the higher education and the health are likely to be pushed to the back-burner in the interim Budget.
Taxes
Govt leaves personal and corporate taxes untouched.
Rs 40,000 cr relief extended through tax cuts.
Rs 40,000 cr relief extended through tax cuts.
Tax collections down by Rs. 60,000 crore over estimates.
Personal Income tax structure has been rationalised.
Distortions in tax structure have been reduced.
Tax rates must fall during the time of crisis.
Tax to GDP ration risen by 12.5%.
Highlights
Rs 11,842 cr allocated to Jawahar Nehru Urban Renewal Mission
Food, fertiliser, petroleum subsidies to go up
Allocation of Rs 14,1703 cr for defence sector
Rs 4,900 cr allocated to Bharat Nirman Scheme
Rs 8,300 cr for mid-day meal scheme
Rs 1,200 crore for Total Sanitation Programme
Rs 6705 cr allocated for child development schemes
Tax collections in 2008-09 to exceed that of 2007-08
FY09 fiscal deficit seen at 6% of GDP vs 2.5 %
Tax collections down by Rs 60,000 crore over estimates
Plan expenditure revised to 3 lakh crore
Revenue deficit revisied at 4.4% of GDP
Custom duties rates steadily reduced in UPA rule
Tax collection to increase in 2008-09
Govt expenditure estimate revised to over 9 lakh crores
Pranab Mukherjee resumes Interim Budget speech
Kerala MP falls ill; session adjourned for 10 minutes
Part of NIF proceeds also to be used for capital investment
PSU turnover up 84%
Centre has pumped in Rs 652 cr into Regional Rural Banks
Personal Income tax structure has been rationalised
Tax rates must fall during the time of crisis
Turnover of PSUs rose by 84% in 2003-08
Young widows to get priority in ITI admissions
The RIDA corpus was hiked from Rs 5,500 to Rs 14,000 cr
Indira Gandhi National Widow Pension Scheme for widows
Govt to provide subsidy to farmers in 2009-10
Six new IITs started in 2008-09
Educational loan schemes revised
2 new IITs in MP and Rajasthan in 2009-10
Rs 65,300 crore in loans loans waived off for farmers
Industrial production fell by 2 pct in 2008 on a YoY basis
Govt took prompt stimulus packages to curb slowdown
Allocation to agriculture increased by 300%
Outlay for higher education increased 900 per cent
Govt took prompt stimulus packages to curb slowdown
Govt approved 37 infrastructure projects
Tax to GDP ration risen by 12.5%
60.12 lakh houses built under Indira Awaas Yojna
Highest priority to rural development
Per Capita income grew by 7.4% in UPA regimen
Agri revival package implemented in 25 states
Employment generation schemes to be expanded
Economic growth has to be sustainable and inclusive
Manufacturing and agriculture sector are the growth drivers
FRPM targets being relaxed
Export growth for the first 9 months of the current year down to 17.1%
Export growth slowed down to 17.1% for the last 9 months
Export growth at 26.4% annually in the last 4 years
Government has approved 37 new infrastructure projects
Serious chocking of credit due to global downturn
Export growth at 26.4% annually in the last 4 years
India second fastest growing economy at 7.1% growth
Agriculture annual growth rate 3.7%
Savings rate up to 30.7% in 2008
Farmers real heroes of our success story
Investment rate has grown to 39%
Fiscal deficit down by 2.7%
Focus to maintain growth rate of 7-8%
After a popular Railway Budget by Rail Minister Lalu Prasad Yadav, the government is all set to present the Interim Budget. Ahead of the general elections, UPA government's interim Budget is likely to provide more focus on sectors like rural development and infrastructure facilities like roads and ports.
Highlights of Railway Budget - 22% more capacity in passenger trains. Two per cent fare cut across the board. 43 new trains to be introduced in FY-2010.
With the government focusing on ways to battle slowdown by providing stimulus to the industry, some of the sectors like the higher education and the health are likely to be pushed to the back-burner in the interim Budget.
Taxes
Govt leaves personal and corporate taxes untouched.
Rs 40,000 cr relief extended through tax cuts.
Rs 40,000 cr relief extended through tax cuts.
Tax collections down by Rs. 60,000 crore over estimates.
Personal Income tax structure has been rationalised.
Distortions in tax structure have been reduced.
Tax rates must fall during the time of crisis.
Tax to GDP ration risen by 12.5%.
Budget disappoints: Sensex slides 329pts, RIL sheds 5%
The Sensex opend almost unchanged at 9,637 - up two points. The index, thereafter, soon slipped into red and was down around 75-odd points before the acting finance minister Pranab Mukherjee started his Interim Budget Speech.
The index extended losses during the course of the Speech, and finally plunged to a low of 9,279 as investors were dis-appointed from the non-eventful Budget.
In today's Interim Budget the UPA government did not announce any major changes in the Budget, nor lowered any taxes and neither the much talked about stimulus package. However, the government did increase spendings on the rural and defence front.
The Sensex finally ended with a loss of 329 points at 9,305.
The BSE Metal index shed 4.8% at 5,031. The Realty, Capital Goods indices and the Bankex dropped around 4.5% each to 1,519, 6,249 and 4,795, respectively.
The market breadth was fairly negative - out of 2,482 stocks traded, 1,598 declined, 776 advanced and the rest were unchanged today.
INDEX SHAKERS...
Jaiprakash Associates slumped nearly 8% to Rs 70. Reliance Infrastructure tumbled 6.3% to Rs 533.
ICICI Bank and Reliance Communications plunged 5.8% each to Rs 409 and Rs 171, respectively.
Tata Steel, Reliance and Larsen & Toubro shed around 5% each at Rs 184, Rs 1,319 and Rs 666, respectively.
SBI and Sterlite dropped nearly 5% each to Rs 1,136 and Rs 263, respectively.
BHEL slipped 4.5% to Rs 1,401. Wipro declined 3.6% to Rs 216.
Ranbaxy and HDFC Bank were down 3.3% each at Rs 205 and Rs 915, respectively.
Hindalco, DLF, HDFC, ACC, NTPC, Infosys and Tata Power were the other major losers.
VALUE & VOLUME TOPPERS
Reliance topped the value chart with a turnover of Rs 240 crore followed by Educomp Solutions (Rs 207.60 crore), DLF (Rs 145.70 crore), Reliance Infrastructure (Rs 119.50 crore) and Reliance Capital (Rs 118.20 crore).
Unitech led the volume chart with trades of around 2.40 crore shares followed by Satyam (2.01 crore), Cals Refineries (1.46 crore), DLF (91.95 lakh) and HDIL (83.77 lakh).
The index extended losses during the course of the Speech, and finally plunged to a low of 9,279 as investors were dis-appointed from the non-eventful Budget.
In today's Interim Budget the UPA government did not announce any major changes in the Budget, nor lowered any taxes and neither the much talked about stimulus package. However, the government did increase spendings on the rural and defence front.
The Sensex finally ended with a loss of 329 points at 9,305.
The BSE Metal index shed 4.8% at 5,031. The Realty, Capital Goods indices and the Bankex dropped around 4.5% each to 1,519, 6,249 and 4,795, respectively.
The market breadth was fairly negative - out of 2,482 stocks traded, 1,598 declined, 776 advanced and the rest were unchanged today.
INDEX SHAKERS...
Jaiprakash Associates slumped nearly 8% to Rs 70. Reliance Infrastructure tumbled 6.3% to Rs 533.
ICICI Bank and Reliance Communications plunged 5.8% each to Rs 409 and Rs 171, respectively.
Tata Steel, Reliance and Larsen & Toubro shed around 5% each at Rs 184, Rs 1,319 and Rs 666, respectively.
SBI and Sterlite dropped nearly 5% each to Rs 1,136 and Rs 263, respectively.
BHEL slipped 4.5% to Rs 1,401. Wipro declined 3.6% to Rs 216.
Ranbaxy and HDFC Bank were down 3.3% each at Rs 205 and Rs 915, respectively.
Hindalco, DLF, HDFC, ACC, NTPC, Infosys and Tata Power were the other major losers.
VALUE & VOLUME TOPPERS
Reliance topped the value chart with a turnover of Rs 240 crore followed by Educomp Solutions (Rs 207.60 crore), DLF (Rs 145.70 crore), Reliance Infrastructure (Rs 119.50 crore) and Reliance Capital (Rs 118.20 crore).
Unitech led the volume chart with trades of around 2.40 crore shares followed by Satyam (2.01 crore), Cals Refineries (1.46 crore), DLF (91.95 lakh) and HDIL (83.77 lakh).
RCom promoter pledges one-fifth of its equity
16 Feb 2009, 1307 hrs IST, PTI
MUMBAI: Shares of Anil Ambani-led Reliance Communications on Monday plunged by over five per cent, after one of its promoters—AAA Communication pvt ltd.- pledged more than one-fifth of its equity in the company.
In a disclosure made to the stock exchanges, Reliance Communication said that one of its promoter entities, AAA Communication Pvt Ltd, has pledged 27.23 crore shares, which account for more than 20 per cent of the overall promoter holding and 13.19 per cent of the company's total equity capital.
Based on the current share price, the pledged shares are worth about Rs 4,684 crore.
The shares were trading at Rs 172.10, down 5.26 per cent on the Bombay Stock Exchange.
As of December quarter, AAA Communication Pvt Ltd held 63.38 per cent stake in the company, while total promoter holding in the company stood at 66.12 per cent. Besides the Anil Ambani family members, the company's promoters also include Reliance Capital, Sonata Investments Ltd, Reliance Innoventures Pvt Ltd, Reliance General Insurance Company.
The disclosure of the pledged shares follows market regulator SEBI's directive which mandates promoters of all listed companies to disclose information about shares pledged by the promoter group.
MUMBAI: Shares of Anil Ambani-led Reliance Communications on Monday plunged by over five per cent, after one of its promoters—AAA Communication pvt ltd.- pledged more than one-fifth of its equity in the company.
In a disclosure made to the stock exchanges, Reliance Communication said that one of its promoter entities, AAA Communication Pvt Ltd, has pledged 27.23 crore shares, which account for more than 20 per cent of the overall promoter holding and 13.19 per cent of the company's total equity capital.
Based on the current share price, the pledged shares are worth about Rs 4,684 crore.
The shares were trading at Rs 172.10, down 5.26 per cent on the Bombay Stock Exchange.
As of December quarter, AAA Communication Pvt Ltd held 63.38 per cent stake in the company, while total promoter holding in the company stood at 66.12 per cent. Besides the Anil Ambani family members, the company's promoters also include Reliance Capital, Sonata Investments Ltd, Reliance Innoventures Pvt Ltd, Reliance General Insurance Company.
The disclosure of the pledged shares follows market regulator SEBI's directive which mandates promoters of all listed companies to disclose information about shares pledged by the promoter group.
Saturday, February 14, 2009
Forex speculation drives corporate losses
http://www.thehindubusinessline.com/2009/02/14/stories/2009021450600600.htm
Forex speculation drives corporate losses
S. Balakrishnan
Apart from the poor operating results of manufacturing companies in Q3 of 2008-9, there was a nasty surprise. Practically all, be they giants or SMEs, have incurred large foreign exchange losses.
What is peculiar is that even companies with predominantly rupee income and expense streams have not been spared.
There is much more here than meets the eye. The only plausible explanation is that they have been trading in forex markets much beyond what was necessary just to hedge their business exposures (because of imports, forex liabilities and exports).
One must be clear about the difference between a trading loss and an opportunity loss. An Infosys selling its dollar income forward when the dollar was Rs 40 on the view that the rupee would appreciate could have earned more had it not done that as the rupee is now nearly Rs 49. This is a case of a view or forecast going wrong, which happens often to the best of market players.
On the other hand, a company which sells non-existent dollar revenues loses real money if the dollar rises and it is forced to square its position at a higher exchange rate. One suspects most of the forex losses of corporates belong to the latter category.
Not new
Of course, all this is not new news. Much has been reported and written about the derivative losses of small, medium and large companies and businesses. Again, these involved complex products and structures in foreign currencies. So you had a small hosier-exporting proprietary firm in Tirupur dabbling in binary, touch, knock-in and knock-out (this has a nice touch to it!) currency options in yen, Swiss franc and euro without in the least realising what it was in for. Expectedly, huge losses were the result. (Not that corporates with supposedly savvy Treasuries fared any better).
It is not as if the Reserve Bank of India allows businesses without underlying currency risk to operate in the forex markets. The central bank’s guidelines and regulations in this matter leave no room for doubt. Still, it cannot escape responsibility and blame, because, besides the mandatory reporting on derivative trades and contracts from banks, the market was abuzz for quite some time about the volumes in exotic derivatives and the major players.
The boards and top managements of companies have an important responsibility to rein in financial transactions and activities which violate the RBI’s regulations (quite apart from their potential destruction of shareholder value). Otherwise, they run the risk of being culpable.
Audit panels’ role
Obviously, we need to revisit the role and functioning of audit committees. Is more hidden from them than disclosed? How well are external directors grounded in management and corporate finance and financial risks — commonplace in any large and medium company — which will enable them to ask the right questions?
As usual, basic questions still seeking satisfying answers.
via:Business line
Forex speculation drives corporate losses
S. Balakrishnan
Apart from the poor operating results of manufacturing companies in Q3 of 2008-9, there was a nasty surprise. Practically all, be they giants or SMEs, have incurred large foreign exchange losses.
What is peculiar is that even companies with predominantly rupee income and expense streams have not been spared.
There is much more here than meets the eye. The only plausible explanation is that they have been trading in forex markets much beyond what was necessary just to hedge their business exposures (because of imports, forex liabilities and exports).
One must be clear about the difference between a trading loss and an opportunity loss. An Infosys selling its dollar income forward when the dollar was Rs 40 on the view that the rupee would appreciate could have earned more had it not done that as the rupee is now nearly Rs 49. This is a case of a view or forecast going wrong, which happens often to the best of market players.
On the other hand, a company which sells non-existent dollar revenues loses real money if the dollar rises and it is forced to square its position at a higher exchange rate. One suspects most of the forex losses of corporates belong to the latter category.
Not new
Of course, all this is not new news. Much has been reported and written about the derivative losses of small, medium and large companies and businesses. Again, these involved complex products and structures in foreign currencies. So you had a small hosier-exporting proprietary firm in Tirupur dabbling in binary, touch, knock-in and knock-out (this has a nice touch to it!) currency options in yen, Swiss franc and euro without in the least realising what it was in for. Expectedly, huge losses were the result. (Not that corporates with supposedly savvy Treasuries fared any better).
It is not as if the Reserve Bank of India allows businesses without underlying currency risk to operate in the forex markets. The central bank’s guidelines and regulations in this matter leave no room for doubt. Still, it cannot escape responsibility and blame, because, besides the mandatory reporting on derivative trades and contracts from banks, the market was abuzz for quite some time about the volumes in exotic derivatives and the major players.
The boards and top managements of companies have an important responsibility to rein in financial transactions and activities which violate the RBI’s regulations (quite apart from their potential destruction of shareholder value). Otherwise, they run the risk of being culpable.
Audit panels’ role
Obviously, we need to revisit the role and functioning of audit committees. Is more hidden from them than disclosed? How well are external directors grounded in management and corporate finance and financial risks — commonplace in any large and medium company — which will enable them to ask the right questions?
As usual, basic questions still seeking satisfying answers.
via:Business line
Sebi slaps 1-year ban on Shankar Sharma for fictitious trading
BS Reporter / Mumbai February 14, 2009, 0:21 IST
The Securities and Exchange Board of India today barred First Global Director and Chief Global Strategist Shankar Sharma from buying, selling or dealing in securities and from associating in the securities market for one year for fictitious trades during early 2001.
The order comes into effect “immediately after four weeks” from the date of communication of the order.
Sebi has, however, disposed the showcause notice against Sharma’s wife Devina Mehra, who is also a director of First Global. TV channel reports quoted Mehra as saying that First Global will appeal against the Sebi order against Sharma.
Sharma was earlier banned by the regulator for one year in 2001 but the order was set aside by the Securities Appellate Tribunal in 2004 on the ground that it was passed beyond the 30-day period prescribed under the then Regulation 29(3) of the Securities and Exchange Board of India (Stock Brokers and Sub Brokers) Regulations, 1992.
Today’s Sebi order, passed by M S Sahoo, wholetime director, said Sharma indulged in fictitious synchronized trading.
It said during the relevant period, Sharma executed huge quantities of trades as a client of Bang Equity. These trades of Sharma were matched through synchronized trades executed by Vrudhi Confinvest, which is a 100 per cent owned company of the Sharma and his wife, Devina Mehra, as a client of FGSB.
The details of these trades showed that there were hardly any time/quantity/price difference between the buy and sell orders for most of the trades. Sebi also observed that in most of the cases, the rate, the quantity and the timing of buy orders matched or were very close to those of sale orders. Therefore, the parties engaged in synchronized deals.
“These trades were nothing but fictitious trades and involved no change in beneficial ownership. Therefore, these created appearance of artificial market and distorted price discovery process in the exchange,” Sebi said.
It added that there was no doubt that that Bang Equity had executed the above trades for Sharma wherein the counter party broker was First Global. “In this regard, it is pertinent to mention that these transactions have already been examined by SAT in the matter of Nirmal bang Securities and Others.
SAT, while disposing of the said appeal, had held these trades to be synchronized in nature. SAT had recorded that these transactions executed by Bang Equity for Sharma as a client, were synchronized with counter party trades for client Vrudhi, executed through First Global.
The order said there was no room for doubt that Sharma indulged in fictitious trading by taking opposite positions at First Global and Bang Equity and by giving false orders for purchase and sale of securities, the execution of which involved no change in ownership.
“ We further find that the trading pattern of the noticees through Bang Equity and First Global was of a highly irregular nature and establishes that Sharma had indulged in a concerted attempt to interfere with the smooth functioning of the market and acted in a manner, which erodes the confidence of the investors and adversely affects the integrity and the healthy growth of the market,” the order said.
Referring to objections raised by Sharma that Sebi’s fresh showcause notices have become infructuous as it is based on a non est order, Sebi said that the notices had been issued under Section ii and 11B of the Sebi Act, 1992. The notices were not entirely based on the findings of the Sebi order dated September 12, 2002.
RelCap promoter pledges 4.03%; no pledging in RelPower, RNRL
13 Feb 2009, 1725 hrs IST, PTI
MUMBAI: Anil Ambani-led Reliance Capital on Friday said one of its promoters has pledged 4.03 per cent stake in the company with lenders.
In a disclosure to the Bombay Stock Exchange, Reliance Capital said its promoter AAA Enterprises has pledged 98.93 lakh shares representing 4.03 per cent stake in the firm.
As of December quarter, the promoters held 53.49 per cent in Reliance Capital, wherein AAA Enterprises held a 51.45 per cent, as per the information on the BSE website.
Calculated on the basis of today's market price of Reliance Capital, the pledging of shares may have fetched an amount of Rs 426.69 crore to the promoter.
Meanwhile, in separate regulatory filings to the stock exchanges today, two other ADAG firms -- Reliance Power and Reliance Natural Resources -- said none of its promoters has pledged any share with the lenders.
"The promoter group has not pledged any share of the company out of a total promoter holding of 84.78 per cent," Reliance Power said.
The disclosure follows market regulator SEBI's directive, which mandates promoters of listed companies to disclose their details of pledged shares in the wake of Satyam fiasco.
Shares of RelCap closed at Rs 431.30, up 3.43 per cent, while RelPower was up five per cent at Rs 108.20. RNRL rose 1.25 per cent to Rs 48.75 on the BSE.
MUMBAI: Anil Ambani-led Reliance Capital on Friday said one of its promoters has pledged 4.03 per cent stake in the company with lenders.
In a disclosure to the Bombay Stock Exchange, Reliance Capital said its promoter AAA Enterprises has pledged 98.93 lakh shares representing 4.03 per cent stake in the firm.
As of December quarter, the promoters held 53.49 per cent in Reliance Capital, wherein AAA Enterprises held a 51.45 per cent, as per the information on the BSE website.
Calculated on the basis of today's market price of Reliance Capital, the pledging of shares may have fetched an amount of Rs 426.69 crore to the promoter.
Meanwhile, in separate regulatory filings to the stock exchanges today, two other ADAG firms -- Reliance Power and Reliance Natural Resources -- said none of its promoters has pledged any share with the lenders.
"The promoter group has not pledged any share of the company out of a total promoter holding of 84.78 per cent," Reliance Power said.
The disclosure follows market regulator SEBI's directive, which mandates promoters of listed companies to disclose their details of pledged shares in the wake of Satyam fiasco.
Shares of RelCap closed at Rs 431.30, up 3.43 per cent, while RelPower was up five per cent at Rs 108.20. RNRL rose 1.25 per cent to Rs 48.75 on the BSE.
Friday, February 13, 2009
Railway Budget-2009 (Interim)
Railway Minister Lalu Yadav on Friday (13th Feb-09)presented an interim budget this time as elections are due soon and by convention the presentation of the regular budget in an election year is left to a new government.
Highlights
Passenger trains will have 22% more capacity.
Two per cent cut in AC-Fares.
43 new trains to be introduced in FY-2010.
Feasibility study for Delhi-Patna Bullet train going on.
Rail passenger growth up 14%.
43 new trains to be introduced in FY-2010.
Freight rate to remain unchanged.
Railways to spend Rs 4000 crore on pensions.
To invest Rs 2.3 cr in the next five years.
Railways has invested Rs 38,000 crore in 2008-09.
6th Pay Commission implementation to hike expense by Rs 13,500cr.
Railways cash reserves touch Rs 90,000 crore .
4 call centres set up for rail enquiry.
Customers can now book tickets online.
Profits registeres without hurting the common man.
Railways managed 8 per cent growth in freight loading.
Freight capacity up by 78%.
Railways got loans at 4%.
Mishap rate has dropped drastically.
Lalu: Our Rail Budget has always been for the poor.
This would be UPA's last railway budget during this term.
The budgetary support to the railway plan will be about Rs 10,800 crore, representing a significant step up of 37 per cent compared with Rs 7,874 crore in 2008-09.
Government officials said the minister was keen on gifting lower fares to the janata in an election year despite resistance within the ministry.
Expectations are that Lalu Prasad's populist budget for 2009- 10 will include a substantial investment of Rs 12,000 crore for the ambitious East-West freight corridor.
Lalu Prasad Yadav looks all set to keep his date with history when he rises to present the interim rail budget in Lok Sabha.
Highlights
Passenger trains will have 22% more capacity.
Two per cent cut in AC-Fares.
43 new trains to be introduced in FY-2010.
Feasibility study for Delhi-Patna Bullet train going on.
Rail passenger growth up 14%.
43 new trains to be introduced in FY-2010.
Freight rate to remain unchanged.
Railways to spend Rs 4000 crore on pensions.
To invest Rs 2.3 cr in the next five years.
Railways has invested Rs 38,000 crore in 2008-09.
6th Pay Commission implementation to hike expense by Rs 13,500cr.
Railways cash reserves touch Rs 90,000 crore .
4 call centres set up for rail enquiry.
Customers can now book tickets online.
Profits registeres without hurting the common man.
Railways managed 8 per cent growth in freight loading.
Freight capacity up by 78%.
Railways got loans at 4%.
Mishap rate has dropped drastically.
Lalu: Our Rail Budget has always been for the poor.
This would be UPA's last railway budget during this term.
The budgetary support to the railway plan will be about Rs 10,800 crore, representing a significant step up of 37 per cent compared with Rs 7,874 crore in 2008-09.
Government officials said the minister was keen on gifting lower fares to the janata in an election year despite resistance within the ministry.
Expectations are that Lalu Prasad's populist budget for 2009- 10 will include a substantial investment of Rs 12,000 crore for the ambitious East-West freight corridor.
Lalu Prasad Yadav looks all set to keep his date with history when he rises to present the interim rail budget in Lok Sabha.
Wednesday, February 4, 2009
Tata Motors fails to pay vendors, suppliers
5 Feb 2009, 0732 hrs IST, Chanchal Pal Chauhan, ET Bureau
NEW DELHI: India’s largest automobile company Tata Motors, which is grappling with declining sales and the financial burden of acquiring British brands Jaguar and Land Rover, has run into payment problems with vendors and suppliers.
The $8.8-billion company that has operations in the UK, South Korea, Thailand and Spain owes more than Rs 1,200 crore in unpaid dues to its suppliers accumulated over the past few months, though the exact amount could not be ascertained.
“The situation was already tense due to the uncertainty over the Nano small car project. It got worse when the company stopped making payments in the past few months. Now, we are in deeper trouble, as Tata Motors’ orders have dropped drastically in the past three months with vehicle sales nosediving,” said an executive with a Delhi-based supplier that sells electrical components to Tata Motors. “We are yet to receive our dues of over Rs 80 crore,” he said.
A senior official with Delhi-based Automotive Component Manufacturers’ Association (ACMA), the apex body of auto component makers, said the total amount due to its members from Tata Motors is in excess of Rs 450 crore.
A Tata Motors spokesman said the company is trying to cope with this extraordinary situation with some help from its vendors. “Tata Motors is working with vendors in these hard times. We cannot share any details since terms between vendors and Tata Motors are internal, but the company will abide by the partnership approach with vendors and suppliers,” he said.
Vendors said they are negotiating for part payments to tide over working capital needs. A Tata Motors’ vendor from the South said payments in excess of Rs 100 crore are pending and no supplementary bills have been paid in the past two months. “We are facing a cash crunch due to falling demand and are finding it difficult to meet our working capital needs,” he said.
While major vendors can carry on for some months, owners of smaller ancillary units said they are on the verge of defaulting on bank loans, as their bulk payments are pending with Tata Motors.
Jamshedpur-based Adityapur Small Industries Association (ASIA) that supplies components to Tata’s truck and bus plant in the same city claimed that Tata Motors owes over Rs 500 crore to its members.
“It’s a scary situation. We have taken loans from banks to fund our liquidity and working capital needs and the rising interest rate, which needs to be paid every month, has increased our burden. If the company fails to pay us on time, many of the units will not be able to pay their loans and may have to shut down,” said a top ASIA official.
Tata Motors had posted a loss of Rs 263 crore for quarter ended December 2008, its first in seven years. The company is negotiating with its suppliers for more time to make payments.
According to automobile industry insiders, the payment problem was aggravated after Tata Motors shifted its Nano car facility to Sanand in Gujarat from Singur in West Bengal. A large number of its vendors had put up factories at the vendor park that was being developed by Tata Motors at Singur. They are now awaiting reimbursements from Tata Motors, which, too, are yet to be paid.
“We are negotiating for compensation for our Singur facility along with our outstanding payments with Tata Motors. The company has assured us of some measures, but nothing has come out of it yet,” said a vendor.
Meanwhile, Tata Motors is looking at raising money from banks to make part-payments to the suppliers, said a top executive with a large private bank. The company started feeling the pinch about four months ago when demand for vehicles plunged. Its sales for the October-December quarter declined by 32% to 98,760 vehicles from 1,44,608 units in the corresponding quarter last year.
The company operates five large commercial vehicle and passenger car plants in India and has an upcoming plant at Sanand in Gujarat that will produce Nano, the world’s cheapest car.
via:E.T
NEW DELHI: India’s largest automobile company Tata Motors, which is grappling with declining sales and the financial burden of acquiring British brands Jaguar and Land Rover, has run into payment problems with vendors and suppliers.
The $8.8-billion company that has operations in the UK, South Korea, Thailand and Spain owes more than Rs 1,200 crore in unpaid dues to its suppliers accumulated over the past few months, though the exact amount could not be ascertained.
“The situation was already tense due to the uncertainty over the Nano small car project. It got worse when the company stopped making payments in the past few months. Now, we are in deeper trouble, as Tata Motors’ orders have dropped drastically in the past three months with vehicle sales nosediving,” said an executive with a Delhi-based supplier that sells electrical components to Tata Motors. “We are yet to receive our dues of over Rs 80 crore,” he said.
A senior official with Delhi-based Automotive Component Manufacturers’ Association (ACMA), the apex body of auto component makers, said the total amount due to its members from Tata Motors is in excess of Rs 450 crore.
A Tata Motors spokesman said the company is trying to cope with this extraordinary situation with some help from its vendors. “Tata Motors is working with vendors in these hard times. We cannot share any details since terms between vendors and Tata Motors are internal, but the company will abide by the partnership approach with vendors and suppliers,” he said.
Vendors said they are negotiating for part payments to tide over working capital needs. A Tata Motors’ vendor from the South said payments in excess of Rs 100 crore are pending and no supplementary bills have been paid in the past two months. “We are facing a cash crunch due to falling demand and are finding it difficult to meet our working capital needs,” he said.
While major vendors can carry on for some months, owners of smaller ancillary units said they are on the verge of defaulting on bank loans, as their bulk payments are pending with Tata Motors.
Jamshedpur-based Adityapur Small Industries Association (ASIA) that supplies components to Tata’s truck and bus plant in the same city claimed that Tata Motors owes over Rs 500 crore to its members.
“It’s a scary situation. We have taken loans from banks to fund our liquidity and working capital needs and the rising interest rate, which needs to be paid every month, has increased our burden. If the company fails to pay us on time, many of the units will not be able to pay their loans and may have to shut down,” said a top ASIA official.
Tata Motors had posted a loss of Rs 263 crore for quarter ended December 2008, its first in seven years. The company is negotiating with its suppliers for more time to make payments.
According to automobile industry insiders, the payment problem was aggravated after Tata Motors shifted its Nano car facility to Sanand in Gujarat from Singur in West Bengal. A large number of its vendors had put up factories at the vendor park that was being developed by Tata Motors at Singur. They are now awaiting reimbursements from Tata Motors, which, too, are yet to be paid.
“We are negotiating for compensation for our Singur facility along with our outstanding payments with Tata Motors. The company has assured us of some measures, but nothing has come out of it yet,” said a vendor.
Meanwhile, Tata Motors is looking at raising money from banks to make part-payments to the suppliers, said a top executive with a large private bank. The company started feeling the pinch about four months ago when demand for vehicles plunged. Its sales for the October-December quarter declined by 32% to 98,760 vehicles from 1,44,608 units in the corresponding quarter last year.
The company operates five large commercial vehicle and passenger car plants in India and has an upcoming plant at Sanand in Gujarat that will produce Nano, the world’s cheapest car.
via:E.T
Tuesday, February 3, 2009
Raju shell cos want Satyam money back
4 Feb 2009, 0113 hrs IST, Sreekala G & Hema Ramakrishnan, ET Bureau
HYDERABAD: In an ironic twist to the ongoing Satyam saga, a clutch of front firms promoted by the founder of Satyam Computer services, Ramalinga Raju, and his family, have demanded repayment of Rs 1,230 crore that they lent to the software firm.
A senior police official, who is a part of the AP police’s investigation team said the firms, about 36 of them, made the demand immediately after Raju’s stunning confession on January 7.
“The matter is now pending before the newly-inducted board,” he added. The firms, Pavitravati Greenfields, Vishnupadi Greenfields, Vindhya Greenfields and Narmada Greenfields, are owned or controlled by Ramalinga Raju and his family.
It is not known when the firms lent the money
to Satyam. According to Mr Raju’s letter to the company’s board on January 7, the liabilities of the company were understated. The police have also claimed that Mr Raju had told them that he had brought in about Rs 1,230 crore into Satyam by pledging shares of his family members with non-banking financial service companies.
Nandini Raju, the wife of Ramalinga Raju, B Suryanarayana Raju, the younger brother of Ramalinga Raju, Jhansi Rani, wife of Suryanarayana Raju, Rama Raju, the youngest sibling of Ramalinga Raju and his wife Radha Raju are among the directors in many or all of these firms.
This development has left the police in Hyderabad intrigued. They are wondering why the family of the accused, some of whom are also being investigated for their role in the falsification of accounts at Satyam, are making such a demand. The timing of the letter is also raising suspicions. It was written barely a day after January 7, raising the possibility of an attempt by some members of the extended Raju family to plead ignorance about the affair.
The Satyam board is also perplexed. A senior official said that they have nothing much to say about the demand. “We are currently in the process of verifying the outstanding liabilities of Satyam. Our plan is to make arrangements to repay only genuine loans given to the firm,” a Satyam official involved in the verification process said. He added that only those liabilities which are genuine will be honoured. Police officials say that there is another reason to suspect the intentions behind the demand.
“These front firms were involved in land dealings and some of them have raised loans aggregating to Rs 1,500 crore to fund property purchases. The money has been raised from financial institutions. The Rajus floated several firms mainly to grab farm land, as the current land ceiling regulation allows an individual to hold only up to 55 acres of agricultural land,” said the official.
According to him, the Rajus have bought land even in other states as well, mainly Pune in Maharashtra, Tamil Nadu, Orissa and Karnataka. The state police has now sought information from the department of registration and stamps in these states.
HYDERABAD: In an ironic twist to the ongoing Satyam saga, a clutch of front firms promoted by the founder of Satyam Computer services, Ramalinga Raju, and his family, have demanded repayment of Rs 1,230 crore that they lent to the software firm.
A senior police official, who is a part of the AP police’s investigation team said the firms, about 36 of them, made the demand immediately after Raju’s stunning confession on January 7.
“The matter is now pending before the newly-inducted board,” he added. The firms, Pavitravati Greenfields, Vishnupadi Greenfields, Vindhya Greenfields and Narmada Greenfields, are owned or controlled by Ramalinga Raju and his family.
It is not known when the firms lent the money
to Satyam. According to Mr Raju’s letter to the company’s board on January 7, the liabilities of the company were understated. The police have also claimed that Mr Raju had told them that he had brought in about Rs 1,230 crore into Satyam by pledging shares of his family members with non-banking financial service companies.
Nandini Raju, the wife of Ramalinga Raju, B Suryanarayana Raju, the younger brother of Ramalinga Raju, Jhansi Rani, wife of Suryanarayana Raju, Rama Raju, the youngest sibling of Ramalinga Raju and his wife Radha Raju are among the directors in many or all of these firms.
This development has left the police in Hyderabad intrigued. They are wondering why the family of the accused, some of whom are also being investigated for their role in the falsification of accounts at Satyam, are making such a demand. The timing of the letter is also raising suspicions. It was written barely a day after January 7, raising the possibility of an attempt by some members of the extended Raju family to plead ignorance about the affair.
The Satyam board is also perplexed. A senior official said that they have nothing much to say about the demand. “We are currently in the process of verifying the outstanding liabilities of Satyam. Our plan is to make arrangements to repay only genuine loans given to the firm,” a Satyam official involved in the verification process said. He added that only those liabilities which are genuine will be honoured. Police officials say that there is another reason to suspect the intentions behind the demand.
“These front firms were involved in land dealings and some of them have raised loans aggregating to Rs 1,500 crore to fund property purchases. The money has been raised from financial institutions. The Rajus floated several firms mainly to grab farm land, as the current land ceiling regulation allows an individual to hold only up to 55 acres of agricultural land,” said the official.
According to him, the Rajus have bought land even in other states as well, mainly Pune in Maharashtra, Tamil Nadu, Orissa and Karnataka. The state police has now sought information from the department of registration and stamps in these states.
Satyam Raju owned 321 shoes, 310 belts, 1000 suits
4 Feb 2009, 0625 hrs IST, TNN
HYDERABAD: At the height of her fame, the deposed Filipino dictator’s wife Imelda Marcos had more than a thousand pairs of shoes, 888 handbags and 508 gowns. As it turns out, had ex-Satyam Computer boss B Ramalinga Raju not been locked up and his fraud exposed, he may have given Imelda a run for her money in the next few fashion
seasons.
Raju’s penchant for high fashion had led him to collect more than a thousand designer suits, if sources in the Enforcement Directorate are to be believed. According to documents prepared by Andhra Pradesh police and given to ED, the disgraced IT czar had 321 pairs of shoes and 310 belts.
Apart from leading a lavish lifestyle, Ramalinga Raju visited various big temples in Andhra Pradesh regularly and donated huge amounts of gold, which collated would approximate about two tonnes. His stargazing pursuits led him to buy a telescope, which valued at more than Rs 1 crore would be the most expensive in any Indian home.
Like many other multi-billionaires, Raju too liked to collect trophy properties around the world. Sources said he had “palatial mansions and villas” in 63 countries.
HYDERABAD: At the height of her fame, the deposed Filipino dictator’s wife Imelda Marcos had more than a thousand pairs of shoes, 888 handbags and 508 gowns. As it turns out, had ex-Satyam Computer boss B Ramalinga Raju not been locked up and his fraud exposed, he may have given Imelda a run for her money in the next few fashion
seasons.
Raju’s penchant for high fashion had led him to collect more than a thousand designer suits, if sources in the Enforcement Directorate are to be believed. According to documents prepared by Andhra Pradesh police and given to ED, the disgraced IT czar had 321 pairs of shoes and 310 belts.
Apart from leading a lavish lifestyle, Ramalinga Raju visited various big temples in Andhra Pradesh regularly and donated huge amounts of gold, which collated would approximate about two tonnes. His stargazing pursuits led him to buy a telescope, which valued at more than Rs 1 crore would be the most expensive in any Indian home.
Like many other multi-billionaires, Raju too liked to collect trophy properties around the world. Sources said he had “palatial mansions and villas” in 63 countries.
India expects to add four nuclear power units
Tue, Feb 3 08:27 PM
New Delhi, Feb 3 (IANS) India hopes to start four nuclear power plants, which could add 1,660 MW capacity to the national energy basket by the end of this year.
'We expect three units to come on stream this year,' Atomic Energy Commission chief Anil Kakodkar told reporters on the sidelines of an awards ceremony here.
'Two units in Rajasthan and one in Kaiga and later this year one of the Kudankulam units may also come upstream,' said Kakodkar.
The Kudankulam plant in Tamil Nadu is being built with Russia's assistance and is seen as a symbol of Indo-Russian civil nuclear cooperation.
'Nuclear energy constitutes only three percent of the total electricity generated in the country. We want to increase it. It is a long process, now the process will be speeded up,' Kakoadkar said while stressing that the India-US nuclear deal will spur up atomic power generation in the country.
Alluding to the India-specific safeguards agreement singed between India and the International Atomic Energy Agency (IAEA) in Vienna Monday, Kakodkar said: 'That was an important step. It is one of the steps in implementing the international civil nuclear cooperation.'
Earlier, Kakodkar, Indian Space Research Organisation (ISRO) Chairman G. Madhavan Nair, social activists Aruna Roy, Nikhil Dey and Shankar Singh, Indian Institute of Management Calcutta (IIM-C) Director Shekhar Chaudhari and Shiv Sena MP Bhavna Gavali were honoured with the Bharat Asmita National Awards.
New Delhi, Feb 3 (IANS) India hopes to start four nuclear power plants, which could add 1,660 MW capacity to the national energy basket by the end of this year.
'We expect three units to come on stream this year,' Atomic Energy Commission chief Anil Kakodkar told reporters on the sidelines of an awards ceremony here.
'Two units in Rajasthan and one in Kaiga and later this year one of the Kudankulam units may also come upstream,' said Kakodkar.
The Kudankulam plant in Tamil Nadu is being built with Russia's assistance and is seen as a symbol of Indo-Russian civil nuclear cooperation.
'Nuclear energy constitutes only three percent of the total electricity generated in the country. We want to increase it. It is a long process, now the process will be speeded up,' Kakoadkar said while stressing that the India-US nuclear deal will spur up atomic power generation in the country.
Alluding to the India-specific safeguards agreement singed between India and the International Atomic Energy Agency (IAEA) in Vienna Monday, Kakodkar said: 'That was an important step. It is one of the steps in implementing the international civil nuclear cooperation.'
Earlier, Kakodkar, Indian Space Research Organisation (ISRO) Chairman G. Madhavan Nair, social activists Aruna Roy, Nikhil Dey and Shankar Singh, Indian Institute of Management Calcutta (IIM-C) Director Shekhar Chaudhari and Shiv Sena MP Bhavna Gavali were honoured with the Bharat Asmita National Awards.
Reliance sent cargo ships of Fuel to Iran in JAN-09
Tue, Feb 3 07:58 PM- REUTERS
Reliance Industries exported more than 750,000 barrels of fuel to Tehran in January, trade sources said on Tuesday.
Reliance had stopped selling fuel to the Islamic Republic last year after French banks BNP Paribas and Calyon stopped offering credit on the deals, after pressure from Western nations that believe Tehran is trying to develop nuclear weapons.
"They sent one 36,000-tonne (306,684 barrels) gasoline cargo, and two 27,000-30,000 tonne (223,200 barrels) gas oil cargoes for Bandar Abbas port in January," said one of the traders. The company itself declined comment.
Tehran has not renewed its term supply deal with Reliance, said a Middle East-based source familiar with the Islamic Republic's fuel import supply programme, but the source declined to provide more details.
An Asian-based trader said Reliance continued to ship out refined oil products to Iran.
"How can they stop trade on one side? It is difficult to believe that they continue to buy significant quantity of Iranian crude and stop selling products," the trader said.
He said Reliance had exported two cargoes each of diesel and petrol to Iran in December, but in the following month two diesel cargoes and one petrol cargo were shipped out.
In January, India's Mangalore Refineries and Petrochemicals Ltd looked unlikely to renew its term deal to supply gas oil to Iran following a price dispute.
The Business Standard newspaper early last month reported that Reliance had decided to stop gasoline supplies to Iran after fulfilling all contractual obligations.
The report said that decision came after eight U.S. congressmen wrote to the U.S. Export-Import Bank to suspend all financial assistance to Reliance until it agreed to halt sales to Iran.
Reliance operates a 660,000 barrels per day refinery at Jamnagar in western India and its subsidiary Reliance Petroleum Ltd commissioned a new export-focused 580,000 bpd plant adjacent to the existing refinery.
After reaching full capacity, the $6 billion new refinery and the existing plant will make the Jamnagar complex the world's single-biggest supplier of fuels to the global market, pumping out 1.24 million bpd.
(Additional reporting by Luke Pachymuthu in DUBAI)
Via:Yahoo
Reliance Industries exported more than 750,000 barrels of fuel to Tehran in January, trade sources said on Tuesday.
Reliance had stopped selling fuel to the Islamic Republic last year after French banks BNP Paribas and Calyon stopped offering credit on the deals, after pressure from Western nations that believe Tehran is trying to develop nuclear weapons.
"They sent one 36,000-tonne (306,684 barrels) gasoline cargo, and two 27,000-30,000 tonne (223,200 barrels) gas oil cargoes for Bandar Abbas port in January," said one of the traders. The company itself declined comment.
Tehran has not renewed its term supply deal with Reliance, said a Middle East-based source familiar with the Islamic Republic's fuel import supply programme, but the source declined to provide more details.
An Asian-based trader said Reliance continued to ship out refined oil products to Iran.
"How can they stop trade on one side? It is difficult to believe that they continue to buy significant quantity of Iranian crude and stop selling products," the trader said.
He said Reliance had exported two cargoes each of diesel and petrol to Iran in December, but in the following month two diesel cargoes and one petrol cargo were shipped out.
In January, India's Mangalore Refineries and Petrochemicals Ltd looked unlikely to renew its term deal to supply gas oil to Iran following a price dispute.
The Business Standard newspaper early last month reported that Reliance had decided to stop gasoline supplies to Iran after fulfilling all contractual obligations.
The report said that decision came after eight U.S. congressmen wrote to the U.S. Export-Import Bank to suspend all financial assistance to Reliance until it agreed to halt sales to Iran.
Reliance operates a 660,000 barrels per day refinery at Jamnagar in western India and its subsidiary Reliance Petroleum Ltd commissioned a new export-focused 580,000 bpd plant adjacent to the existing refinery.
After reaching full capacity, the $6 billion new refinery and the existing plant will make the Jamnagar complex the world's single-biggest supplier of fuels to the global market, pumping out 1.24 million bpd.
(Additional reporting by Luke Pachymuthu in DUBAI)
Via:Yahoo
Ispat Industries' director resigns
Ispat Industries has announced that Manu Chadha, director of the company has resigned with effect from 29 January 2009.
The company made this announcement after the trading hours on 03 February 2009.
The company made this announcement after the trading hours on 03 February 2009.
SC allows Sebi to question Raju
NEW DELHI: The Supreme Court today allowed Securities and Exchange Board of India (Sebi) to question Ramalinga Raju in the Satyam case.
The market regulator had approached the apex court after being denied permission by the lower courts in Andhra Pradesh to question Raju.
The apex court allowed Sebi to question Raju, his brother Rama Raju and ex-CFO of Satyam Srinivas Vadlamani at the Chanchalguda jail in Hyderabad. The questioning can be held over three days - from February 4 till February 6.
PTI adds: A bench headed by Chief Justice K G Balakrishnan directed the superintendent of Chanchalguda central prison to allow Sebi's investigating officer Sunil Kumar to question the Raju brothers.
Sebi had, since January 8, the day after Ramalinga Raju disclosed the Rs 7,800 crore fraud in Satyam, been trying to quiz the two brothers. The Rajus were arrested by the state CID on January 9, and since became inaccessible.
The regulator then approached a local court for permission to interrogate the Rajus, but the plea was rejected on technical grounds.
When the hearing of its appeal in the Andhra Pradesh High Court was repeatedly deferred, Sebi moved the apex court for "urgent relief."
The Supreme Court today also said that Kumar will intimate the jail authorities in advance as to who will be accompanying him for the interrogation of the Raju brothers.
Sebi would be probing if there was any insider trading angle to the fraud since Raju had disclosed falsifying profits for years, which would have helped inflate share prices.
Arguing on behalf of Sebi, Solicitor General G E Vahanvati claimed interrogation and recording of statement was necessary to verify facts as documents were going out of the country. He clarified that the regulator was not seeking custody of the Rajus, but only permission to quiz them.
The 6th Additional Chief Metropolitan Magistrate, Hyderabad, had refused permission on the ground that Sebi was not an investigating agency, and there was no provision in law under which it could interrogate the Raju brothers.
The Supreme Court today directed Sebi to also intimate the jail authorities about the duration of the interrogation. In its petition before the apex court, the regulator said
the high court should have seen that the Raju brothers cannot use judicial custody as a shield to avoid probe by expert agencies.
The market regulator had approached the apex court after being denied permission by the lower courts in Andhra Pradesh to question Raju.
The apex court allowed Sebi to question Raju, his brother Rama Raju and ex-CFO of Satyam Srinivas Vadlamani at the Chanchalguda jail in Hyderabad. The questioning can be held over three days - from February 4 till February 6.
PTI adds: A bench headed by Chief Justice K G Balakrishnan directed the superintendent of Chanchalguda central prison to allow Sebi's investigating officer Sunil Kumar to question the Raju brothers.
Sebi had, since January 8, the day after Ramalinga Raju disclosed the Rs 7,800 crore fraud in Satyam, been trying to quiz the two brothers. The Rajus were arrested by the state CID on January 9, and since became inaccessible.
The regulator then approached a local court for permission to interrogate the Rajus, but the plea was rejected on technical grounds.
When the hearing of its appeal in the Andhra Pradesh High Court was repeatedly deferred, Sebi moved the apex court for "urgent relief."
The Supreme Court today also said that Kumar will intimate the jail authorities in advance as to who will be accompanying him for the interrogation of the Raju brothers.
Sebi would be probing if there was any insider trading angle to the fraud since Raju had disclosed falsifying profits for years, which would have helped inflate share prices.
Arguing on behalf of Sebi, Solicitor General G E Vahanvati claimed interrogation and recording of statement was necessary to verify facts as documents were going out of the country. He clarified that the regulator was not seeking custody of the Rajus, but only permission to quiz them.
The 6th Additional Chief Metropolitan Magistrate, Hyderabad, had refused permission on the ground that Sebi was not an investigating agency, and there was no provision in law under which it could interrogate the Raju brothers.
The Supreme Court today directed Sebi to also intimate the jail authorities about the duration of the interrogation. In its petition before the apex court, the regulator said
the high court should have seen that the Raju brothers cannot use judicial custody as a shield to avoid probe by expert agencies.
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