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PDICAI Knowledge Capsule - 28/05/2014

Wednesday, May 28, 2014
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Professional News
INCOME TAX
Mauritius for automatic exchange of tax info with India
Delhi : Visiting Mauritius PM Navin Ramgoolam on Tuesday offered support to India's efforts to curb unaccounted wealth of some Indians returning in the guise of legitimate investment, by ensuring that investing entities in Mauritius are not fronts for tax evaders.“We gave additional proposals to reassure India that we will not allow anyone to abuse or misuse provisions of the treaty (Double Tax Avoidance Convention signed between the two countries in 1983),” Ramgoolam said at a media briefing.
SEBI
Sebi finds large-scale violation of norms in some MF schemes
Delhi : Market regulator Sebi has found large-scale violation in several schemes of select mutual fund houses where norms regarding minimum 20 investors and maximum 25% single investor exposure have been breached repeatedly. These fund houses have been asked by Sebi to immediately take redressal measures, failing which penal actions can be taken, a senior official said.
Diageo gets Sebi nod on Rs 11,449-cr open offer for United Spirits
Maharashtra : Global liquor giant Diageo Plc has received market regulator Sebi’s clearance for an open offer to acquire additional 26 per cent stake in United Spirits Ltd for Rs 11,448.91 crore. This is the second open offer made by Diageo to gain majority control in India’s number one liquor firm.As part of the deal to buy 53.4 per cent stake in Vijay Mallya-led UB group’s USL, Diageo has made a Rs 11,448.91 crore open offer for purchase of 26 per cent stake in the company from non-promoter shareholders.
After private companies, Sebi wants PSUs to have 25% public float
Maharashtra : Having successfully implemented the 25 per cent free-float norm for private companies, the Securities and Exchange Board of India (Sebi) now wants the government to pare its holdings in public-sector undertakings (PSUs) to below 75 per cent.According to sources familiar with the developments, the securities market regulator has already written to the finance ministry proposing the minimum public shareholding (MPS) be raised from 10 per cent to 25 per cent, to level the playing field. The regulator is likely to set a three-year timeframe for PSUs to meet the 25 per cent MPS requirement to avoid crowding out.
FDI Policy
No FDI in multi-brand retail, says Sitharaman
Delhi : Reiterating BJP's stand in its election manifesto that FDI will be allowed in all sectors barring multi-brand retail, the new minister of state (Independent charge) for commerce and industry Nirmala Sitharaman on Tuesday said it is best not to open up floodgates of FDI "now" in the retail sector as it will affect small traders and farmers.The new minister also said boosting exports through a new Foreign Trade Policy for the period 2014-19, enhancing economic and trade ties with all the countries as well as creating more jobs will be priority areas for the new government.
Private life insurers pitch for raising FDI limit to 49%
Delhi : As the Narendra Modi-led Government hits the ground running, private life insurers are quite confident that the new dispensation would get the FDI limit in insurance sector hiked to 49 per cent from 26 per cent.They see foreign direct investment (FDI) limit hike as a low-hanging fruit that the new dispensation would be inclined to pick to bring back some energy in the insurance sector.The main hurdle is getting the pending insurance Bill — which would pave the way for hike in FDI limit to 49 per cent — passed in Parliament.
Finance & Money Markets
Infra, realty and power stocks see highest volumes in last one month
Maharashtra : With the new government fuelling hopes of an economic recovery, stocks of realty, infrastructure and power companies within the BSE 500 universe have seen the highest average daily volumes over the last one-month period.Real estate developer Unitech tops the list as the counter has seen daily average volumes of 9.2 crore shares over the last one month, which is 69% higher than daily average volumes seen on the counter in CY14. Within the infrastructure space, GMR Infrastructure’s one-month average daily volumes are 78.63% higher than the average volumes seen in CY14.
Run up to monetary policy: Hawkish stance to weaken rupee
Maharashtra : It is widely expected at its second bi-monthly policy review on June 3, the Reserve Bank of India (RBI) will maintain status quo on the policy rate. In case the central bank adopts a hawkish stance, it is likely the rupee will weaken, though bond markets might remain range-bound.Market participants say a hawkish stance could dim any possibility of a rate cut in the near future. This will hit inflows, a key determinant of the direction of the domestic currency.
Current market rally may give India more MSCI weightage: Analysts
Maharashtra : India's weightage on MSCI and FTSE Emerging Market indices is expected to increase significantly in the next revamp as more stocks could find their way to these gauges in the wake of the recent rally on Dalal Street. Many foreign institutional investors (FIIs), mainly exchange traded funds (ETFs), benchmark their Indian portfolios to these indices.
RBI asks Kotak Bank to trim promoter's stake to 40% by September
Maharashtra : RBI has directed Kotak Mahindra Bank's promoter Uday Kotak to pare holding of promoters to 40% by September. "The RBI has directed the bank to bring down its promoter shareholding to 40% by September 30, 2014, as per estimates provided by the bank. The next estimate is 30% by December 31, 2016," the bank said in a statement to the stock exchange. The promoter holding in the bank is 43.58%; Uday Kotak directly holds 39.76%. An email query sent to the lender remained unanswered.
Commodities
Sugar industry body seeks hike in import duty to 40% from 15%
Delhi : Sugar industry body ISMA expected that the new government would provide a stable policy for the sector that supports 50 million farmers and sought hike in import duty of the sweetener to at least 40 per cent.Import duty currently stands at 15 per cent. Industry has been demanding an increase in import duty to boost sales of domestic sugar as the country has surplus production."The sugar industry has great expectations from the new government as it is facing financial difficulties for a long period and needs stability.
Brent Trades Near 4-Day Low After Ukraine; WTI Is Steady
Delhi : Brent crude traded near its lowest closing level in four days amid speculation that heightened discord between Russia and Ukraine following weekend elections won’t impact oil supply. West Texas Intermediate was steady before economic data.Futures were little changed in London even as President-elect Petro Poroshenko said there will be an increase in the efficiency of operations against eastern separatists amid tensions with Russia, the second-largest net oil exporter.
INTERNATIONAL BUSINESS
Foxconn makes 4G play with $390M stake in Taiwan telecom
 Apple supplier Foxconn plans to secure a roughly 15% stake in Asia Pacific Telecom as it expands to 4G communications.Hon Hai Precision Industry, also known as Foxconn, plans to buy a stake in Taiwanese mobile telecoms operator Asia Pacific Telecom in order to strengthen its position within the 4G telecoms industry.The manufacturer, which supplies Apple with components for its iPhone and iPad mobile devices, is planning to shake hands on a deal with Asia Pacific worth T$11.6 billion ($390 million).
MERGER & ACQUISITION - NATIONAL
Motherson Sumi buys auto wiring business of US company Stoneridge for $66 million
Delhi : Motherson Sumi Systems (MSSL), India's largest auto component maker by turnover, has announced the acquisition of USbased Stoneridge's wiring harness business for $65.7 million (around Rs 385 crore) becoming one of the largest players in the vehicle wiring business. MSSL, the flagship company of the $5.4-billion Samvardhana Motherson Group, has acquired Stoneridge through a wholly-owned subsidiary.
Pension/Provident Fund
Provident funds stuck on beaten path, miss investment windfall
Maharashtra : Nearly 3,000 standalone provident funds have missed investment opportunities in highyielding debt securities over the past few months since they have been following the old investment pattern since 2004 that is supposed to change soon. The new pattern was expected to be notified by March-end after a bit of dilly-dallying, but later it was further postponed due to the Election Commission's model code of conduct that was in place till May 16.
Banking
Basel III: banks may raise Rs 3 trillion in non-core capital by FY17
Maharashtra : Rating agency ICRA on Tuesday said banks would have to mop up Rs 3 trillion (Rs 3 lakh crore) in non-equity debt over the next three years as they migrate to the capital intensive Basel-III framework. "Banks both public and private sector ones, are expected to issue non-equity capital bonds of Rs 2.5-3 trillion over the next three years till FY17," it said in a statement.
Notifications & Circulars
EXCISE
Circular No. 982 / 06 / 2014 – CX (Delhi) 15/05/2014
Regarding classification of rice par-boiling machinery
SEBI
CIR/IMD/DF/10/2014 (Maharashtra) 22/05/2014
Circular on Mutual Funds
CIR/MRD/DP/ 16 /2014 (Maharashtra) 16/05/2014
Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement
CIR/MRD/DP/15/2014 (Maharashtra) 15/05/2014
Risk management framework for Foreign Portfolio Investors (FPI) under the SEBI (Foreign Portfolio Investors) Regulations, 2014
RBI
Notification No. RBI/2013-14/615 (Delhi) 28/05/2014
Lending to Public Sector Undertakings
Notification No. RBI/2013-14/607 (Delhi) 27/05/2014
Issue of Pre-paid Payment Instruments-UCBs
Notification No. RBI/2013-14/608 (Delhi) 27/05/2014
RRBs - Need for Bank Branches/ATMs to be made accessible to persons with disabilities
Notification No. RBI/2013-14/609 (Delhi) 27/05/2014
Rounding off transactions to the Nearest Rupee by NBFCs
Notification No. RBI/2013-14/610 (Delhi) 27/05/2014
RRBs - Opening of Bank Accounts in the Names of Minors
Notification No. RBI/2013-14/611 (Delhi) 27/05/2014
RRBs - Levy of penal charges on non-maintenance of minimum balances in inoperative accounts
Notification No. RBI/2013-14/612 (Delhi) 27/05/2014
Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans
Notification No. RBI/2013-14/613 (Delhi) 27/05/2014
Risk Management and Inter Bank Dealings
Notification No. RBI/2013-14/614 (Delhi) 27/05/2014
The Depositor Education and Awareness Fund Scheme, 2014 –Section 26A of Banking Regulation Act, 1949- Operational Guidelines
Notification No. RBI/2013-14/603 (Delhi) 26/05/2014
Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans
Notification No. RBI/2013-14/604 (Delhi) 26/05/2014
Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/ Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – Harmonization of KYC norms for Foreign Portfolio Investors (FPIs) – Primary (Urban) Cooperative Banks (UCBs)
Notification No. RBI/2013-14/605 (Delhi) 26/05/2014
Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR
Notification No. RBI/2013-14/606 (Delhi) 26/05/2014
Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFCs
Notification No. RBI/2013-14/602 (Delhi) 23/05/2014
CCTV Coverage of all cash handling operations in Currency Chests
 
Economy
 India
Smriti Irani aims to increase spend on education to 6% of GDP
Finance ministry for divestment through follow-on offers and open offer for sale in PSUs
Decision on rail fare hike after talks with PM: Gowda
Subsidised LPG finds its way to commercial users
Fiscal deficit within 4.6% in FY14: Finmin report
 
 International
Euro Lures Asia After Record Dollar Debt Splurge: Credit Markets
Bank reforms slowed by fierce industry pushback: Lagarde
Spain should increase tax revenue, bring debt down, says IMF
South Africa economy contracts for first time since 2009
 
Markets Today
NSE
7,329.65

BSE
24,556.09

NASDAQ
4,237.07

     
USD
58.87
 
EURO
80.35
 
JPY(100)
57.81
 
GBP
98.90
 
 
Corporate Watch
Infosys sales from telecom, energy may double by 2017
Karnataka : Infosys aims to more than double revenues from the energy and telecoms verticals by 2017, as it looks to tap opportunities in the upstream oil and gas segment in the United States and grow its presence in the European telecoms market. In the energy space, Infosys is betting on rising IT spends in the US by energy giants, including ExxonMobil and BP, as it also tries to help firms mine petro-technical data and come up with solutions for pipeline integrity management, said a senior executive.
Restaurant chain Olive Bar plans to raise Rs 200-Crore from private equity investors
Maharashtra : Restaurant chain Olive Bar & Kitchen, in which Aditya Birla Private Equity fund is an investor, is looking to raise Rs180- 200 crore from other private equity investors to fuel its expansion plans, three people with direct knowledge of the development said. The deal signals the continued interest of PE investors in the fine dining and quick service restaurant chains.
Jet to take tough calls as quarterly loss zooms to Rs 2,465 cr
Maharashtra : Stung by a record Rs 2,465-crore loss in the March quarter — the biggest ever by a private Indian airline in a quarter — Jet Airways on Tuesday said it would take tough decisions and follow a three-year business plan to clean its balance sheet, beside adopting a new network-and-fleet strategy.At Rs 4,129 crore, Jet’s annual loss in 2013-14 was second only to Air India’s estimated Rs 5,400-crore loss last financial year.
Adani in realty push, lines up projects
Maharashtra : The Adani group is on a fast track. It announced a Rs 4,400-crore acquisition of the Dhamra port the day election results gave Prime Minister Narendra Modi a superlative win. Just over a week later, the Rs 50,000-crore group’s real estate arm, Adani Realty, announced the launch of a luxury residential project in Mumbai’s posh Four Bungalows area, a western suburb.
NBFC CORNER
A single window for auditors of non-banking finance companies
 
Tenders & Assignment
Government Of Bihar
Description :Request for Expression of Interest for Appointment of Chartered Accountant for Making of Balance Sheet.

Last Date : 06/06/2014

Address :Patna - Bihar
 
Municipal Corporation Of Kota
Description :Requirement of Chartered accountant for Chartered accountant service like income tax, sale tax, royalty, service tax, PF etc work & financial year 2014-15 last accounts with bank reconciliation & audit work.

Last Date : 09/06/2014

Address :Municipal Corporation Of Kota
Kota Rajasthan
 
Assam State Rural Livelihood Mission Society - Guwahati - Assam
Description :Expression of Interest for Internal Audit.

Last Date : 10/06/2014

Address :State Mission Director,ASRLMS
Shivanath Gogoi Path,Nabajyotinagar Panjabari,Guwahati-37
 
Public Health Engineering Department - Patna Bihar
Description :Expression of Interest (EOI) for Selection of Chartered Accountant Firm for the Statutory Audit of Bihar State Water and Sanitation Mission.

Last Date : 10/06/2014

Address :Bihar State Water and Sanitation Mission(Public Health Engineering Department, Government of Bihar)First Floor, PHED Building, VishweshvariyaBhawan, Bailey Road, Patna

Phone :0612-22545705

E-Mail :edir_pmu@yahoo.co.in
 
Panchayat And Rural Development Department - Raipur Chhattisgarh
Description :Audit work by chartered accountant firms.

Last Date : 12/06/2014

Address :Panchayat And Rural Development Department Raipur Chhattisgarh
 
Department Of Higher Education - Agartala Tripura
Description :Expression of interest from the charted accountant firms empanelled with C & AG and having turnover of RS 25 lakhs / year to conduct internal audit for the work bank project.

Last Date : 16/06/2014

Address :Directorate of Higher Education.Old Secretariat.Complex,Agartala,Tripura (W),799001

Phone :0381-2314402

E-Mail :rupanjalmyself@gmail.com

Department Of Institutional Finance
Description :Appointment of statutory auditor for audit works.

Last Date : 20/06/2014

Address :Department Of Institutional Finance,Vindhyachal Bhawan, C-Wing, First Floor, Bhopal - 462004

Phone :91 755 2551199/2552003
 
Department Of Medical And Health Service - Kavaratti Lakshadweep
Description :Hiring Services Of Chartered Accountant Firm For Statutory Audit Of State Health Society. Under NHM.

Last Date : 20/06/2014

Address :Department Of Medical And Health Service,Kavaratti - Lakshadweep

Phone :04896-263748

E-Mail :rchlakshadweep@gmail.com
 
School Of Good Governance And Policy Analysis - Bhopal Madhya Pradesh
Description :Empanelment of chartered accountant – invited from the registered chartered accountants/firms for empanelment for conducting statutory audit of books of accounts of atal bihari Vajpayee lok prashasan sansthan.

Last Date : 23/06/2014

Address:Bhadbhada Chouraha,T.T.Nagar,Bhopal-462003,

Phone :2777316

E-Mail :sushasank@gmail.com
 
 
Reminders
 Tenders
National Highway Authority Of India 29/05/2014
Karnataka State Police Housing Corporation Limited 30/05/2014
Punjab Municipal Infrastructure Development Company 30/05/2014
Assam Administrative Staff College 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
State Health Society,NRHM -Jammu kashmir 31/05/2014
District Rural Development Authority - Mungeli Chhattisgarh 31/05/2014
Public Works Department 04/06/2014
Vijaya Bank 04/06/2014
Ahmedabad Cantonment Board 04/06/2014
 
Notifications & Circulars
INCOME TAX
Notification No. 26/2014 (Delhi) 16/05/2014
The principal rules were published vide Notification S.O. 969 (E),
CUSTOMS
Notification No.24 /2014-Customs (ADD) (Delhi) 24/05/2014
Seeks to levy definitive anti-dumping duty on imports of Methylene Chloride, originating in or exported from the European Union, United States of America and Korea RP for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, 21st October, 2013
ORDER (Delhi) 16/05/2014
Appointment of Common Adjudicating Authority
Notification No. 21/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to extend the validity of notification No. 41/2009-Customs dated 29.04.2009 for a further period of one year i.e. upto and inclusive of 28.04.2015.
Notification No. 22/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to levy definitive anti-dumping duty on imports of persulphates, originating in or exported from Taiwan, Turkey and USA for a period of five years.
Notification No. 23/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to levy provisional anti-dumping duty on imports of phenol, originating in or exported from Chinese Taipei and USA for a period of six months.
Notification No. 41/2014 - Customs (N.T.) (Delhi) 15/05/2014
Rate of exchange of conversion of each of the foreign currency with effect from the 16th May, 2014
Notification No.42/2014 - Customs (N.T.) (Delhi) 15/05/2014
Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001
Notification No.39/2014 - Customs (N.T.) (Delhi) 07/05/2014
Amends Notification No.62/1994-Cus.(N.T.) dated 21.11.1994
 
 
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