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PDICAI Knowledge Capsule - 29/04/2014

Tuesday, April 29, 2014
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Professional News
DTC
Should the DTC be scrapped?  Article
Delhi : As part of its reform agenda, the government introduced the Direct Taxes Code (DTC) with the intent to bring about a tax legislation which is simple and reflective of the current global and Indian economic scenario. The DTC has evolved since its introduction in 2009 and currently exists in the form of the Direct Taxes Code 2013 which was released by the finance minister recently and is available for public comments. The DTC 2013 seeks to strike a balance between reining in fiscal deficit and at the same time providing a fillip to the country’s economic growth.
GST
New govt must roll out GST to raise capex: Crisil
Delhi : Expressing concerns over a fall in capital expenditure as a percentage of GDP, Crisil on Monday said the new government must speed up the process of implementing Goods and Services Tax and cut subsidies to free up more resources for productive investment. As against the 13th Finance Commission's capital expenditure to GDP target of 4.5% to be achieved by fiscal 2015, what has actually been achieved is less than half of the target, the ratio for fiscal 2014 was 1.7% and the same is budgeted for fiscal 2015," Crisil said in a report.
Misc. Corporate Laws & Other Commercial Policies
Govt for discussion paper on royalty payment ceiling
Delhi : Amid worries over a 50 per cent rise in royalty payments by Indian firms to their foreign partners or multinational parents in four years to 2012-13, the government is likely to bring a discussion paper for review of the present unbridled policy, after the Lok Sabha polls are over."The discussion paper will come in the next couple of weeks," a senior official in the Department of Industrial Policy & Promotion (DIPP) said. The last phase of elections will be over on May 12.
CCI shifts focus from 'legal form' to 'business rationale
Delhi : Since May 2011, when the merger control provisions of India's Competition Act, 2002 came into force, all mergers or acquisition of shares and assets that are above specified asset/turnover thresholds have to be notified to the Competition Commission of India (CCI) for pre-merger scrutiny. The CCI may either approve the transaction or impose structural or behavioural remedies to ensure that the transaction, when consummated, does not cause any anti-competitive harm in any Indian market. In extreme cases, the CCI is even empowered to block a transaction.
Govt frames rules for states to ensure cover for those hit by hydel projects
Delhi : The power ministry is framing guidelines for the implementation of local area development fund (LADF) to ensure state governments pass on the intended monetary benefits to people affected by hydel projects.The Centre's revenue from the sale of 1% free power to discoms goes to the LADF. (The government doesn't pay hydel stations for power given free to project-affected people, it is, in fact, entitled to get its entire share – 12% – of power procured from the hydel stations free of cost).
Power PSUs may be allowed to sell Centre’s quota in open market
Delhi : In what could turn out to be a bonanza for central generating utilities such as NTPC, the government has proposed to let them directly sell 25% of the Centre's quota of power from their projects in the unregulated market to open-access consumers.These utilities are currently required to earmark 15% of their output to the Centre, which will then use the same to meet exigencies like acute shortage of power in any part of the country. The proposal is to allow central power utilities to keep a quarter of their share to the quota with themselves for sale in the market where tariff is not regulated.
Finance & Money Markets
Cyclical stocks see buying interest as market rally broadens
Maharashtra : The market momentum appears to be broadening even as the benchmarks continue to touch new highs. Buying interest is clearly spreading towards the cyclical sectors, which have underperformed the benchmarks for most part of the last two years, given that the number of stocks outperforming the benchmark indices has jumped in the year so far. For instance, of the 348 stocks from the BSE 500 universe, which exist in the index since a decade, 204 have outdone the Sensex returns (7.2%) in 2014 compared to 105 in 2013.
Commodities
EU ban on Indian Alphonso imports leaves traders bitter
Delhi : The 28-member European Union has temporarily banned the import of Alphonso mangoes, the king of fruits, and four vegetables from India from May 1, sparking protests from the Indian community, lawmakers and traders.The recent decision by the grouping's standing committee on Plant Health came after 207 consignments of fruits and vegetables from India imported into the EU in 2013 were found to be contaminated by pests such as fruit flies and other quarantine pests.
Commodities futures market caught in bear grip
Delhi : The commodities futures market continues to reel under the twin impact of the commodities transaction tax (CTT) and the National Spot Exchange Ltd (NSEL) imbroglio. These developments, which have affected liquidity and discouraged trading, have led to a sharp dip in turnover in the market.In the first fortnight of this month, the turnover dropped by 70 per cent to Rs. 2.36-lakh crore from Rs. 7.87-lakh crore in the corresponding year-ago period.
INTERNATIONAL BUSINESS
Pfizer ponders next step after AstraZeneca snubs $100-bn bid
 US drugmaker Pfizer is working on its next move in a potential $100-billion battle for Britain's AstraZeneca after having two bids rejected, as deal-making grips the healthcare industry.Pfizer said on Monday it made a £58.8-billion ($98.9 billion) bid approach to AstraZeneca in January and had contacted its British rival again on April 26 seeking further discussions about a takeover.
U.S. Said to Sanction Seven Russians, 17 Companies
 The Obama administration will sanction seven Russians and 17 companies, including some involved in the financial, energy and infrastructure sectors, according to a congressional official briefed on the actions. President Barack Obama said today in Manila that the U.S. is “moving forward with an expanded list of individuals and companies that will be affected by sanctions. They will remain targeted. It will also focus on some areas of high-tech defense exports to Russia.”
Banking
Moody’s: RBI curbs on overseas loan facilities may increase NPAs
Maharashtra : The RBI’s recent restrictions on credit facilities extended by Indian banks to overseas entities of Indian companies are likely to increase the amount of reported bad loans, Moody’s said in a report on Monday.“The new regulations are likely to increase the amount of reported non-performing corporate loans. However, the increase would reflect a truer picture of bank asset quality,” the report said.
ICICI, Axis & HDFC Bank will gain most from economic revival, say analysts
Maharashtra : Getting the economy going again will be among the primary tasks of the new government, although there are few concrete signs of a turnaround amid gloomy forecasts of a possibly weak monsoon. But if and when some of the sunnier prognostications come true, the banking sector will be among the beneficiaries.Banking analysts are of the view that once the economy picks up, ICICI Bank and Axis Bank will gain on account of loan growth and HDFC Bank will benefit on account of better credit quality and margin improvement.
Notifications & Circulars
INCOME TAX
Circular No. 09/2014  (Delhi) 23/04/2014
Clarification regarding treatment of expenditure incurred for development of roads/highways in BOT agreements under Income-tax Act,1961-regarding
SEBI
CIR/IMD/FIIC/ 09/ 2014 (Maharashtra) 28/04/2014
Infrastructure facilities and submission of periodic reports
CIR/MRD/DP/ 14 /2014 (Maharashtra) 23/04/2014
Revised guidelines for Liquidity Enhancement Scheme in the equity cash and equity derivatives segments
RBI
Notification No. RBI/2013-14/575 (Delhi) 28/04/2014
Usage of Transaction Type Code (TTC) in RTGS
Notification No. RBI/2013-14/576 (Delhi) 28/04/2014
Auction of Government of India Dated Securities
Notification No. RBI/2013-14/572 (Delhi) 25/04/2014
Reporting of Cross Border Wire Transfer Report on FINnet Gateway
Notification No. RBI/2013-14/573 (Delhi) 25/04/2014
Reporting of Cross Border Wire Transfers
Notification No. RBI/2013-14/574 (Delhi) 25/04/2014
Reporting of Cross Border Wire Transfers
Economy
 India
Return to 9% growth unlikely in next 2-3 years, says India Ratings
Shipping ministry to launch new projects worth Rs 13,700 crore
IMF warns of high corporate leverage in India
NPS gave worst returns for government workers in 2013-14
NRIs invest over $2 billion in Indian realty in 2013 on weak rupee
Supreme Court may impose Goa-like mining ban in Odisha
Automobile slump stoking labour unrest at companies
Plan panel to discuss highs and lows with PM
 International
Might Be Time to Short the Euro
U.S. pending home sales jump, end losing streak
Draghi Awaits Key Inflation Data as Radical Action Eyed: Economy
Markets Today
NSE
6,715.25

BSE
22,466.19

NASDAQ
4,074.40

USD
60.47
EURO
83.87
JPY(100)
58.83
GBP
101.63
Corporate Watch
Slowdown hits HUL, net up 11%
Maharashtra : FMCG major Hindustan Unilever (HUL) on Monday reported a 11% jump in standalone net profit at R872.13 crore in the fourth quarter of FY14.A year ago, the company had reported a profit of R787.20 crore in the March quarter. Volumes grew was subdued at 3% y-o-y and revenues rose 10% y-o-y at R7,094 crore indicating the company’s dependence on price hikes.Spending on advertisements as a percentage of sales was down 11.8% in the fourth quarter of FY14 compared with 12.7% in March quarter of FY13, and 11.2% in the third quarter of FY14.
Godrej Consumer net falls 29% at Rs 236 cr
Delhi : FMCG major Godrej Consumer Products (GCPL) on Monday reported a 29.28% fall in consolidated net profit at R236.28 crore in the March quarter of FY14 due to exceptional items in the corresponding quarter of FY13. The company had reported a net profit of R334.14 crore in the corresponding period last year, Godrej Consumer Products said in a BSE filing. GCPL had reported exceptional item of R128.90 crore in the quarter ended March 31, 2013.
REC to raise Rs 30,000 cr via debentures
Delhi : State-owned Rural Electrification Corporation will issue debentures of up to R30,000 crore during the current financial year. “The board of directors of the company has approved issuance of non-convertible debentures up to R30,000 crore through private placement during the current fiscal (2014-15),” REC said in a regulatory filing. NCDs can't be converted into shares or equity. They are used for raising long-term funds by companies through public issue.
Snapdeal begins 'Launchpad', an e-window for Indian innovators
Delhi : Online marketplace Snapdeal is launching a platform that will allow innovators to showcase consumer products designed by them on the portal. The Delhi-based ecommerce company hopes to provide entrepreneurs building products access to its over 2.5-crore users. It will help in marketing and provide access to its payment gateway, distribution and reverse logistics services.
Daimler displaces Eicher Motors as third biggest truck manufacturer in Indian heavy truck market
Delhi : German commercial vehicle maker Daimler has displaced Eicher Motors to become the third biggest truck manufacturer in India, less than two years after its debut in the country. Daimler India Commercial Vehicles, the Stuttgart-based company's wholly-owned subsidiary, now commands a 4.3 per cent share of the domestic heavy duty truck market, according to sales data for the quarter to March compiled from the Indian Automotive industry.
Indian IT firms come under greater scrutiny as US implements new risk-mitigation rules
Maharashtra : Indian information technology firms are facing greater scrutiny from financial sector clients in the United States, following the new risk-mitigation rules they have been asked to adhere to by regulatory agencies. Over the last six months, the Office of the Comptroller of the Currency and the US Federal Reserve have issued new directions on how financial firms should consider risk — both in terms of the companies they outsource to and the operations that are being outsourced.
NBFC CORNER
A single window for auditors of non-banking finance companies
Announcements
Professional Development Committee is organising live Webcast on "Clarification of MEF issues & Recent Development/Initiative of Professional Development Committee" on 2nd May, 2014 at 2 P.M. onwards.
Tenders & Assignment
Army Public School
Description :Expression of Interest for Empanelment of Chartered accountant firm for a period of three years for carrying out annual audit of the school account, verification of employees TDS & deposit the same with concemed authority, various tax matters & allied activities, or any other matter relating to tax or accounts or book keeping etc

Last Date : 05/05/2014

Address :Jodhpur - Rajasthan
Rajasthan Housing Board
Description :Proposals invited from Chartered accountant firms for Appointment of Tax advisor.

Last Date : 15/05/2014

Address :Rajasthan Housing Board
Jaipur Rajasthan
Indian Institute Of Management
Description :Engagement of Chartered Accountant firm.

Last Date : 17/05/2014

Address :Indian Institute Of Management,M.D.U. Campus Rohtak – 124001, (Haryana)

Phone :01262-228503
State Health Society Jaipur
Description :Selection of Concurrent auditors – Request for Proposal for Hiring services of Chartered accountants firm(s) for Concurrent audit of rajasthan state health society (RSHS) & district health societies/district rural health societies

Last Date : 26/05/2014

Address :jaipur-Rajasthan
Reminders
 Tenders
Zilla Panchayat - Bijapur Chhattisgarh 30/04/2014
Hindustan Copper Limited 30/04/2014
Singhbhum District Central Co-Operative Bank Limited 30/04/2014
Housing And Urban Development Corporation Limited 01/05/2014
Urban Administration And Development - Sagar - Madhya Pradesh 05/05/2014
Urban Administration And Development - Bhopal - Madhya Pradesh 05/05/2014
Urban Administration And Development - Ujjain - Madhya Pradesh 05/05/2014
Department Of Health Services - Lakshadweep  05/05/2014
Urban Administration And Development - Jabalpur - Madhya Pradesh 05/05/2014
Urban Administration And Development - Rewa - Madhya Pradesh 05/05/2014
Urban Administration And Development - Gwalior - Madhya Pradesh 05/05/2014
Urban Administration And Development 05/05/2014
Panchayat And Rural Development Department - Kolkata West Bengal 05/05/2014
Urban Administration And Development - Indore - Madhya Pradesh 05/05/2014
National Institute Of Fashion Technology 06/05/2014
Punjab Land Records Society 06/05/2014
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