| Professional
News |
| INCOME
TAX |
| CBDT ask officials to ensure M&As
do not defraud revenue |
|
Delhi : Worried over
corporates defrauding revenue by mergers and acquisitions, the
Finance Ministry has asked its officials to ensure that such
deals do not result in loss to the exchequer.The revenue
officials, CBDT said in acommunication to Chief Commissioners,
should raise concerns on tax issues while submitting their
comments on mergers and acquisition deals to the Ministry of
Corporate Affairs (MCA) so that they could be incorporated in
reports to the high court.
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| COMPANY
LAW |
| Government plans detailed FAQs on CSR
issues |
|
Delhi : To help companies
for their social welfare activities under the new legislation,
the government plans to come out with various initiatives
including a detailed set of 'Frequently Asked Questions'
(FAQs) for the stakeholders. certain class of companies are
now required to shell out at least two per cent of their
three-year annual average net profit towards Corporate Social
Responsibility (CSR) activities.
|
| Minority shareholders can block
related-party deals |
|
Maharashtra : The new
Companies Act rules have given a lot of powers to minority
shareholders, but the one creating ripples in the corporate
sector is that promoters, who are majority shareholders,
cannot vote in special resolutions in cases of related-party
transactions. The new rules under Section 188 say any
related-party transaction that is not done in the ordinary
course of business and is not at an arm’s length will need
approval of minority shareholders by way of a special
resolution. But, shareholders who are related or interested
parties in the transaction will not be able to vote in
resolutions relating to payment of brand fees or management
fees to majority shareholders.
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| CSR expenditure not a tax-deductible
expense |
|
Delhi : The revised draft of
the Direct Taxes Code 2013 ('DTC 2013') is a welcome step, as
it has incorporated a majority of recommendations made by the
Standing Committee on Finance ('SCF') on the previous version
of DTC. However, the revised version in certain critical areas
is against the general objective and intention behind
introduction of DTC.CSR is one such domain where the lawmakers
have disappointed the taxpayers.
|
| RBI |
| RBI relaxes some import/forex
rules |
|
Delhi : The Reserve Bank of
India (RBI) has liberalised the procedure for facilitating the
import of rough diamonds (termed roughs in the trade). Till
now, advance payment without any limit and without a bank
guarantee or standby letter of credit could be made only to
notified mining companies by an importer, other than a public
sector company or a department orundertaking of the Union or
state governments.Henceforth, RBI will not notify the names of
foreign mining companies from which such an importer may
import roughs by way of advance payments and without any limit
or bank guarantee or standby letter of credit.
|
| Finance & Money
Markets |
| Foreign listing to get easier for
Indian cos |
|
Delhi : Those companies not
listed in India but planning to get listed on foreign stock
exchanges won't have to comply with Sebi's disclosure norms or
that of the primary (Indian) exchange any longer. They would
only need to take into account the corresponding rules of the
foreign regulator and exchange concerned. A finance ministry
notification on an amendment to the relevant section is
expected this week, sources told FE.This would make it easier
for companies to raise capital abroad through this route and
use it for repaying their foreign debt or for overseas
operations including acquisitions. The government had allowed
unlisted companies to get listed overseas in September last
year. Earlier, a simultaneous listing on Indian exchanges was
mandatory for overseas listing.
|
| Banks burdened with rising bad loans
turn foreign loan guarantors |
|
Maharashtra : Indian banks
burdened with rising bad loans and a narrowing window to
escape providing for bad loans are making a shift to
'guarantee' overseas fund raisings by financially weak
companies, which enables them to borrow in US dollars and
repay existing loans. The guarantees, which some bankers call
a 'novel way of evergreening' stressed accounts, help
companies avoid default on their obligations and make banks
avoid providing for them as non-performing loans, said three
bankers familiar with the prctice.
|
| Commodities |
| Palladium climbs to highest level
since 2011; gold slips |
|
Delhi : Palladium, on
Friday, advanced to the highest in more than two years as the
US threatened more sanctions against Russia, the world's
largest supplier of the metal used in pollution-control
devices for cars. Gold fell. US Treasury Secretary Jacob J Lew
said the country may impose additional "significant" measures
against Russia if it continues to escalate tensions in
Ukraine.
|
| Rising stocks, slow exports to
pressure palm oil prices |
|
Maharashtra : Despite the
emerging scenario of weakening fundamentals, crude palm oil
prices have held well at Malaysia ringgit 2,650-2,750 a tonne
levels in recent weeks, because of the dry spell in South-East
Asia and Brazil. The situation has been exacerbated by the
looming threat of El Nino.Latest inventory figures from
Malaysian Palm Oil Board are instructive. March-end palm oil
stocks were up 2 per cent month-on-month at 1.7 million tonnes
(mt); and higher than market expectation of 1.6 mt. Export
data, too, are far from encouraging. March shipments were 8
per cent lower than the previous month and close to a fifth
lower than in the previous year. Aggregate exports in the last
two quarters were down 10 per cent compared with similar
period the previous year.
|
| MERGER &
ACQUISITION - NATIONAL |
| How beneficial are mergers for
shareholders? |
|
Delhi : If there's a quick
way to expand a company's scale of operations, widen its
product portfolio, expand into new geographies and add to its
technological capabilities, it's through mergers and
acquisitions (M&As). However, while companies are able to
gain and expand their balance sheets, shareholders might not
always be able to make money from such deals. If the past is
an indication, M&As might not always turn out as
anticipated. Experts say shareholders must always watch for
the price and strategic intention. They reckon in the coming
years, mergers, domestic and foreign, will increase; so should
the scrutiny of such deals.
|
| Banking |
| Banks sell Rs 10,000 cr of bad loans
to ARCs in March |
|
Maharashtra : Faced with
unprecedented levels of stressed assets, banks led by the
country's largest lender SBI sold over Rs 10,000 crore of bad
loans to asset reconstruction companies (ARC) in March
alone."This single-month figure is higher than any other
yearly number from the past," an industry source told PTI,
wishing not to be named.Due to the high accretion of NPAs in
the recent past — the total NPAs stood at 4.2 per cent as of
September 2013 — the banks are being nudged to sell bad assets
to the 14 ARCs. Together with restructured assets the total
stressed assets in the system touched 10.2 per cent as of the
December quarter. Banks have recast nearly a Rs 1 trillion
worth of loans in the past fiscal alone, taking the total CDR
book to over Rs 4 trillion.
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|
 |
| Economy |
| India |
| Govt may set eight-year life cap for
CVs |
| International debt raising soars, touches $5.6
billion this year |
| Pharma sector expects strong
FY15 |
| Difficult choice: For ONGC, it is US shale or
Iran gas |
| Behind the industrial growth
numbers |
| Indian IT firms making headway in continental
Europe where large corporations are turning to
them |
| US, EU oppose India’s local sourcing norms in
telecom |
| Rs 6,700 crore coal linkages revived in Odisha,
Chhattisgarh and Jharkhand |
| How PSUs can be put on a high-growth
path |
| |
| International |
| IMF reforms hit deadlock: G20
official |
| Further euro strengthening would trigger looser
monetary policy: ECB |
| Tensions over money flows bode poorly for global
economy |
| Cementing Europe’s recovery |
| |
| Markets
Today |
| NSE |
6,776.30
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| BSE |
22,628.96
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| NASDAQ |
3,999.73
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| USD |
60.17
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| EURO |
83.16
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| JPY(100) |
59.15
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| GBP |
100.59
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| |
| Corporate
Watch |
| Microsoft finds no safe harbour in tax row
rerun |
|
Delhi : After being told it
understated its income by Rs 5,135 crore for FY06-09,
Microsoft has got another tax notice, this time for
understating its FY10 income by Rs 400 crore, or around 33%.
Apart from the money involved, the case is important as tax
talks between India and the US have got badly stuck on the
issue of what kind of profit margins US firms need to declare
for Indian tax authorities to accept them at face value —
there are 200 cases of US firms that are under
dispute.
|
| MRF to invest Rs 1,000 cr for capacity
expansion |
|
Tamil Nadu : Unfazed by the
sluggishness in the automotive sector, tyre major MRF said it
will continue to grow at 20% per annum and expand capacities
at its Hyderabad and Trichy plants for an estimated investment
of R1,000 crore in current fiscal (October-September 2014).
The company will explore inorganic growth in Asean and African
countries, said Koshy K Varghese, executive vice-president
(marketing), MRF.
|
| Another deal from turnaround
expert |
|
Delhi : Following the announcement
that Sun Pharma would acquire Ranbaxy, we upgrade Sun Pharma
from Neutral to Buy with a revised PO (price objective) of
R680 (24xFY16e). Sun Pharma is to buy Ranbaxy for $4 bn in an
all share swap (16.2% dilution for Sun Pharma), valuing
Ranbaxy at 2.2xLTM (last twelve months) sales. While the deal
will be earnings dilutive in the near term (-4% in FY16), we
see significant synergies over the next three-four years which
we believe will lead to 10-12% incremental EPS (earnings per
share) in year three from the acquisition.
|
| Local impact of foreign
merger |
|
Delhi : The boards of global cement
majors Holcim and Lafarge have unanimously agreed to merge
their global operations (in 1:1 ratio) to create the world’s
largest building materials entity, to be called LafargeHolcim.
In India, Holcim is present through ACC and Ambuja Cement,
while Lafarge is present through Lafarge India Pvt. Ltd
(LIPL).The gigantic merger will see three possible scenarios
in India: (i) ACC, Ambuja, LIPL will continue to function as
independent entities in India. Indirect consolidation will
make it a positive for industry if the Competition Commission
of India (CCI) approves; (ii) objection by CCI may result in
cement assets’ sale to third parties, and hence neutral for
industry.
|
| Ranbaxy may have to pay huge fine,
again |
|
Delhi : Ranbaxy Laboratories, set
to be merged with Sun Pharmaceutical Industries, might again
have to pay a hefty penalty to the US authorities for alleged
violations at its Toansa factory in Punjab. The facility is
currently banned from supplying products to the American
market. According to a regulatory source, an administrative
subpoena issued recently to Ranbaxy's active pharmaceutical
ingredient (API) manufacturing unit in Toansa has been
triggered through an investigation into alleged fraud and
violation of manufacturing norms.
|
| Future Group to acquire Nilgiris for up to
Rs 175 cr |
|
Delhi : Future Group is set to take
over southern supermarket chain Nilgiris for Rs 150-175 crore,
according to two people with direct knowledge of the deal. It
has in principle agreed to acquire the stake of private equity
firm Actis Capital along with the minority shareholding of the
promoters in a transaction that could give Kishore Biyani led
Future the extensive footprint in southern India he's been
looking for.
|
| London based billionaire among bidders for
Financial technlogies’ MCX stake |
|
Maharashtra : An entity
representing the interests of London-based Lord Bagri family
has bid for the 24% stake of Financial TechnologiesBSE -0.75 %
(FT) in Multi Commodity Exchange (MCX), two sources close to
the deal said.The Bagri family is led by billionaire Raj Kumar
Bagri, the former chairman of London Metal Exchange and a peer
in the House of Lords.
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| |
| Tenders
& Assignment |
Department Of Information Technology
 |
Description :Hiring the
services of an Agency to provide Two Chartered Accountants(one
with three years of work experience and another with one year
of work experience) for Setu Maharashtra, Directorate of
Information Technology, Govt. of Maharashtra
Last Date : 29/04/2014
Address :Mumbai - Maharashtra
Phone :022-22024177
E-Mail :sonia.singh@semt.maharashtra.g
ov.in
|
| Housing And Urban Development Corporation
Limited |
|
Description :Appointment Of
Statutory Auditors For Audit Of Accounts Of Hudco Employees
Cpf Trust For The Financial Year 2013-14.
Last
Date : 01/05/2014
Address :
HUDCO Bhawan (Ist Floor), IHC, Lodhi Road, New Delhi-110003
|
| |
| Reminders |
| Tenders |
| Rural Development And Panchayati Raj Department -
Chickballapur Karnataka 15/04/2014
|
| Rural Development And Panchayati Raj Department -
Haveri Karnataka 15/04/2014
|
| Chief Commissioner Of
Income-Tax,Bangalore-1 15/04/2014
|
| Rural Development And Panchayati Raj Department -
Davanagere Karnataka 15/04/2014
|
| Rural Development And Panchayati Raj Department -
Bangalkot Karnataka 15/04/2014
|
| Uttarakhand Compensatory Afforestation Fund
Management And Planning
Authority 15/04/2014
|
| Security Printing And Minting Corporation Of
India Limited Dewas 15/04/2014
|
| Headquarters Western
Command 15/04/2014
|
| Rural Development And Panchayati Raj Department -
Tumkur Karnataka 15/04/2014
|
| Eastern Coalfields Limited - Burdwan West
Bengal 17/04/2014
|
| Sarva Shiksha
Abhiyan 21/04/2014
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