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PDICAI Knowledge Capsule - 24/05/2014

Saturday, May 24, 2014
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Professional News
Misc. - Direct Tax
Tax sops in store for telecom sector as Modi govt looks to change investment sentiment
Delhi : The new government is likely to take a relook at all "regressive" and "anti-business" policies that have created a negative sentiment among foreign investors, especially towards the telecom sector with tax claims against UK's Vodafone Group and Nokia being prime examples, people aware of BJP's thinking said. Issues around taxation and litigation that have cast India in a negative light will be taken up by the incoming BJP led government and resolved on "priority", these people said.
CUSTOMS
Commerce Ministry proposes dumping duties on solar cells
Delhi : In what could come as relief to domestic solar cell manufacturers such as Tata Power, Moser Baer and Indosolar, the Commerce Ministry has recommended anti-dumping duties on cells imported from the US, China, Malaysia and Chinese Taipei.The penal duties proposed by the Directorate General of Anti-dumping Duty are in the range of $0.11 per watt of power produced to $0.81 per watt. The levy will be applicable on solar cells, including the ones that are assembled into solar panels, modules or on glass.
Misc. - Indirect Tax
Delhi Govt Gets Rs 1,400 cr in Taxes
Delhi : Delhi government has collected over Rs. 1,400 crore in taxes in the month of April which is 4.4% of the total revenue target of Rs. 31,571 crore for the current fiscal. The collection under VAT was Rs. 940 crore followed by Rs. 228 crore under stamps.
SEBI
Sebi writes to fund houses on breach in 25% investor cap
Maharashtra : Several large fund houses have drawn flak from the Securities and Exchange Board of India (Sebi) for breaching the 25 per cent single-investor ceiling in debt schemes. Sources said Sebi had written to about 30 mutual fund (MF) houses, saying the investment limit was sacrosanct and should always be maintained. A special analysis conducted by the capital market regulator’s investment management department revealed huge fluctuations in debt scheme assets, with some periodically crossing the 25 per cent single-investor ceiling.
FDI Policy
Ministry to retain stance on defence production FDI
Delhi : The defence ministry will maintain its stance that foreign direct investment (FDI) in defence production should be retained at 26% with the Cabinet-given leeway to raise the cap only on discretionary, case-to-case basis. This is despite the Department of Industrial Policy and Promotion (DIPP) pushing for 100% FDI in the sector with an emphasis on reducing imports while simultaneously encouraging indigenisation.The BJP, in its manifesto, has stated that with the exception of the multi-brand sector, FDI will be permitted in sectors with a focus on jobs and asset creation.
Misc. Corporate Laws & Other Commercial Policies
FIPB to decide on raising foreign investment in HDFC Bank
Delhi : The Foreign Investment Promotion Board (FIPB) will take a call on increasing foreign investment in HDFC Bank.The proposal to increase foreign investment in the bank was opposed by the Department of Industrial Policy and Promotion (DIPP) and the Reserve Bank of India (RBI) under the current foreign direct investment (FDI) policy."It (ambiguities in HDFC Bank's proposal) will be cleared in the FIPB," Finance Secretary Arvind Mayaram said.
New govt may scrap equity scheme
Delhi : The Rajiv Gandhi Equity Savings Scheme (RGESS) might be one of the first to face the axe of the incoming government, which takes charge next week. The finance ministry is planning to propose scrapping the UPA’s much-touted taxsaver scheme, as it has failed to lure equity investors.Other major programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS),
Finance & Money Markets
Govt bonds record biggest weekly gain since Nov
Maharashtra : Government bonds completed their biggest weekly advance since November, on reports that the new government would strive to bring down the fiscal deficit. The yield on the 10-year benchmark bond ended at 8.64 per cent — its lowest since January 22 — compared with the previous close of 8.71 per cent. The yield had ended at 8.83 per cent last Friday.During the week, the yield fell nearly 20 basis points.
Bonds rise to highest level in four months
Maharashtra : The benchmark 10-year bond rose to its highest level in four months on Friday as good demand at a debt sale and expectations that the new government would work towards reining in the fiscal deficit boosted sentiment. Yield on the benchmark 10-year fell 19 basis points on the week, its biggest weekly fall since the week to December 13 when it had dropped 25 bps. Sentiment has improved after two senior finance ministry officials said on Thursday that the government could bring down the fiscal deficit to around 3.8-3.9% of the GDP,
Rupee hits 11-month high before RBI intervenes
Maharashtra : The rupee retreated from an 11-month high to fall on Friday as the central bank stepped in to temper gains being sparked by continued expectations of robust foreign inflows and a rally in domestic shares.The currency still rose 0.4% for the week, posting its fourth straight weekly gain and its longest winning streak in 16 months on hopes the BJP’s landslide win last week would bring a new government willing to undertake substantial economic reforms.
Top 500 companies raise Rs 20,000-crore debt for dividend payouts in FY14
Maharashtra : Aggressive dividend payouts by top 500 companies has seen 419 of them together borrowing around R20,000 crore, while paying around R1.2 lakh crore in FY14, according to India Ratings.“Several BSE 500 corporates, excluding banks and financial services companies, adopted an aggressive dividend payment strategy in FY'14, despite a reduction in their net profit. We expect 419 of these corporates to have paid an aggregate dividend of R1-1.2 lakh crore in the fiscal and availed aggregate debt of R18,000-20,000 crore for the same,” said the rating agency.
State Bank Q4 net falls but asset quality rises
Maharashtra : State Bank of India (SBI) on Friday reported a net profit of R3,041 crore for the quarter ended March, down 7.8% from a year earlier on the back of strong top line growth, flat expenses and improving asset quality.The results cheered the Street and sent the stock surging to a three-year high of R2,755.25 on the BSE, up 9.6% from its previous close. So far in 2014, the SBI counter has gained more than 56%.
Commodities
Gold nosedives to 10-month low as premiums fall further
Delhi : Gold prices lost R300 in the national capital on Friday to hit a ten-month low of R28,250 per 10 gram as consumers deferred purchases anticipating further fall, driving down premiums further.Gold of 99.9% and 99.5% purity lost R300 per 10 gram each to R28,250 and R28,050, respectively. Gold has crashed by R1,030 in the last three sessions.The fall in prices was caused by the RBI’s decision earlier this week to allow banks to provide gold loans to jewellers and permit more entities to import gold. The measures brightened the prospects of gold supplies, dragging down premiums charged by importing agencies over the London price drastically.
Sugar output likely to drop 3.7% this year  
Delhi : Sugar output in India is expected to drop 3.7% this marketing year through September, although production would still be marginally higher than consumption, according to the Indian Sugar Mills Association (ISMA). Output will likely hit 24.2 million tonnes in 2013-14 compared with 25.14 milllion tonnes a year before, ISMA said. Consumption is expected to go up by 5.3% to 24 million tonnes, it added.
Reminders
 Tenders
Ministry Of Urban Development - New Delhi Delhi 26/05/2014
North Eastern Development Finance Corporation Limited 26/05/2014
Punjab & Sind Bank 26/05/2014
State Health Society Jaipur 26/05/2014
Forward Markets Commission - Government of India  26/05/2014
Mission For Elimination Of Poverty In Municipal Areas 26/05/2014
National Rural Health Mission Maharashtra 26/05/2014
Watershed Development Department 26/05/2014
State Project Facilitation Unit - Bhopal Madhya Pradesh 26/05/2014
Housing And Urban Development Corporation Limited - Dehradun 27/05/2014
Rajasthan Medical Services Corporation Limited 28/05/2014
Public Health Engineering Department 28/05/2014
Hospital Services Consultancy Corporation [ India] Limited 28/05/2014
Cantonment Board - Solan Himachal Pradesh 28/05/2014
Dena Bank 28/05/2014
Rajasthan State Ganganagar Sugar Mills Limited 28/05/2014
National Highway Authority Of India 29/05/2014
Karnataka State Police Housing Corporation Limited 30/05/2014
Assam Administrative Staff College 30/05/2014
Punjab Municipal Infrastructure Development Company 30/05/2014
Sarva Shiksha Abhiyan - Srinagar - Jammu kashmir  30/05/2014
General Administration Department - Patna Bihar 30/05/2014
Mahila Arthik Vikas Mahamandal Limited - Mumbai Maharashtra 30/05/2014
District Panchayat - Korea Chhattisgarh 30/05/2014
Bharat Wagon And Engineering Company Limited 31/05/2014
District Rural Development Authority - Mungeli Chhattisgarh 31/05/2014
 
 
Economy
 India
First lot of rescue for road builders
Seamless transfer of coal linkage to new power units on the anvil
Odisha to renew some iron ore mining licences in about 2 months
Forex reserves up $1.09 bn; back to April level
Coal import rises by 18% to 171 million tonnes
 
 International
US wins car import duties trade case against China
US new home sales rebound
Putin seeks better ties with West, slams US over Ukraine
China admits economy facing pressure, policy fine-tuning needed
 
Corporate Watch
M&M to establish a 4,000 Cr plant in Chennai to build new range of vehicles
Delhi : Mahindra & Mahindra is not far away from the announcing its plans to establish its new automotive plant. The proposed manufacturing facility is slated to come up in Tamil Nadu.Financial Express reports that the plant could come up at Cheyyar, near Chennai and would be responsible for manufacturing new range of Mahindra vehicles that are under development. The formal announcement of the plant is expected to be made in June after the melee of Lok Sabha elections subsides.
ITC Q4 profit rises 18% on price hikes
West Bengal : ITC, which has a presence in cigarettes, FMCG, hotels, paper boards and agri-produce, on Friday beat street estimates to post an 18% jump in net profit to R2,278.01 crore for the January-March quarter. The bottomline was boosted largely by price hikes and a pick-up in sales of low-cost cigarettes. Net sales during the period rose 12% to R9,145.14 crore. ITC generates about half its revenues from cigarettes, but also owns hotels and makes products such as soaps and shampoos. It said revenue from the non-cigarette consumer business grew 13.6% to R2,314.5 crore.
PepsiCo to source cashew, benefit 15,000 Indian farmers
Delhi : Global foods and beverages major PepsiCo will source cashew from small farmers in Maharashtra under its new partnership with the Clinton Foundation that will benefit up to 15,000 growers.Cashew will be sourced from more than 2,000 small farmers in 2014, with plans to scale the opportunity to as many as 15,000 of them over the next five years for the company's local juice business requirement, PepsiCo said in a statement.
NBFC CORNER
A single window for auditors of non-banking finance companies
 
Tenders & Assignment
Assam State Rural Livelihood Mission Society
Description :Expression of interest for Conducting of Statutory audit of ASRLMS.

Last Date : 05/06/2014

Address :Guwahati - Assam
 
Assam Gramin Vikash Bank
Description :Empanelment of Concurrent auditors for its branches.

Last Date : 05/06/2014

Address :Assam Gramin Vikash Bank, Head Office, G.S.Road, Bhangagarh, Guwahati 781005

Phone :0361-2131604
 
West Bengal State Marketing Board
Description :Expression of interest for Engagement as internal auditors of Board for its head office.

Last Date : 06/06/2014

Address :Kamal Guha Krishi Bipanan Bhavan
729,Anandapur P.O.Anandapur,P.S.Tijala,Kolkata-700107

Phone :033-24430025
 
Urban Development Agency - Patna Bihar
Description :Selection Of Chartered Accountant Firms For Audit Of Urban Development Agency For The Financial Year 2011-12, 2012-13 & 2013-14.

Last Date : 06/06/2014

Address :Urban Development & Housing Department, GoB Room No-159 New Secretariat, Bailey Road, Patna-15
 
District Magistrate - Medinipur West Bengal
Description :Expression of Interest for MGNREGS Fund Audit for 2013-14.

Last Date : 10/06/2014

Address :Government of West Bengal Office of the District Magistrate Paschim Medinipur (MGNREGA CELL)1st floor,Sahid Kshudiram Parikalpana Bhawan,Zilla Parishad Com plex,Midnapore
 
Department Of Education - Lucknow Uttar Pradesh
Description :Empanelment of Chartered Accountant Firms for Audit of Accounts.

Last Date : 10/06/2014

Address :Lucknow - Uttar Pradesh

Phone :0522-2239115

E-Mail :rmsaup.spo@gmail.cim
 
Himachal Pradesh Power Corporation Limited
Description :Expression of Interest from firms of Chartered Accountants for empanelment for Appointment as internal Auditors for the Financial year 2014-15.

Last Date : 10/06/2014

Address :Himfed Bhawan, Panjri, (Below Old MLA Quarters), Shimla-171005.

Phone :0177-2633589
 
District Rural Development Agency - Kullu Himachal Pradesh
Description :From the Chartered Accountants of Himachal Pradesh who are empanelled with C&AG / State AG to provide their services for conducting audit of MGNREGA , other centrally / State sponsored schemes for the year 2013-14 & 2014-15.

Last Date : 11/06/2014

Address :Kullu - Himachal Pradesh

Phone :01902-222296

E-Mail :drdakulluhp@gmail.com
 
Department Of Horticulture And Food Processing - Dehradun Uttaranchal
Description :Tender for The Appointment of CA Firm for Audit of HMNEH, NMMI Schemes.

Last Date : 13/06/2014

Address :Dehradun - Uttaranchal
 
Jammu And Kashmir State Forest Corporation
Description :Appointment of statutory auditors for conducting audit of accounts for the period of 2012-13 and 2013-14.

Last Date : 15/06/2014

Address :Jammu And Kashmir State Forest Corporation,H/O Behind Silk Factory Road,Rajbagh,Srinagar-190008
 
Jaipur Development Authority
Description :Request for proposal for Appointment of Statutory auditor/CA firms for six laning of ring road from road to road section at Rajasthan on DBFOT toll basis.

Last Date : 18/06/2014

Address :Jaipur Development Authority
Jaipur Rajasthan

Phone :0141-2563234
 
Delhi Pollution Control Committee
Description :Requisition of Chartered Accountant for Internal Audit For the Period 2009-10 to 2012-13.

Last Date : 20/06/2014

Address :Delhi Pollution Control Committee,4th Floor.ISBT Building,Kashmere Gate,Delhi-06
 
 
Notifications & Circulars
RBI
Notification No. RBI/2013-14/601 (Delhi) 22/05/2014
Reporting to Central Repository of Information on Large Credits (CRILC)
Notification No. RBI/2013-14/597 (Delhi) 21/05/2014
Export of Goods - Long Term Export Advances
Notification No. RBI/2013-14/598 (Delhi) 21/05/2014
Need for Bank Branches / ATMs to be made accessible to persons with disabilities
Notification No. RBI/2013-14/599 (Delhi) 21/05/2014
Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 – Bharatiya Mahila Bank Limited
Notification No. RBI/2013-14/600 (Delhi) 21/05/2014
Import of Gold by Nominated Banks / Agencies / Entities
 
 
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