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The board meeting of Dhampur Sugar Kashipur, which was scheduled on 29 December 2008, now the company informed that all the items of the agenda of the board meeting could not be taken up including approval and adoption of annual audited financial results for the year ended 30 September 2008 and has been postponed till 30 December 2008.
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Section 2(41) of the Income Tax (IT) Act, 1961, defines a "relative" to mean husband, wife, brother or sister or any lineal ascendant or descendant of the individual. Lineal ascendant/descendent means in a straight unbroken line of descent from parent to child. Thus, lineal descendant of the brother/sister is not covered.
A brother means "a male with the same parents as someone else". So the term brother will not include cousins in its natural sense. Section 2(15B) extends the definition of child to stepchild and adopted child as well. It does not include illegitimate child.
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During the bull-run of 2003-2007, stock-pickers concentrated on profit generated by companies. Investors rated companies based on valuation ratios such as price to earning (P/E) and return on equity (RoE). These are derived and dependent on profit reported by companies. Moreover, companies tend to diversify into various businesses — related or unrelated — to their present business activities during an economic boom.
It is during an economic slowdown, however, the focus gradually shifts to core business activities. In the present scenario of tight liquidity in the domestic and global markets, a strong and profitable business operation is the key to survival and growth for Indian companies.
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Dr. Reddys Laboratories has entered into agreements with Schering and Sepracor which will allow Dr. Reddy's to manufacture and market generic versions of the CLARINEX-D -12 Hour and CLARINEX D - 24 Hour products, with six months marketing exclusivity, and the CLARINEX REDITABS product, with six months marketing co-exclusivity, starting in 2012. Dr. Reddy's will also market a generic version of the CLARINEX 5 milligram tablet six months after the launch of the first generic version of that product.
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Piramal Healthcare, one of India's largest pharmaceutical and healthcare companies and Minrad International, Inc., a provider of generic inhalation anesthetics, jointly announced that they have signed a definitive merger agreement for Piramal to acquire Minrad. Under the terms of the agreement, Minrad will merge with a newly incorporated wholly-owned subsidiary of Piramal. If the merger is completed, stockholders of Minrad will receive $ 0.12 per share in cash. In connection with the merger agreement, Piramal has also agreed to acquire Minrad's 8% senior secured convertible notes from the note holders. Total consideration for the merger and acquisition of the notes, in cash plus the assumption of debt, will be approximately $ 40 million. The transaction is conditioned upon approval by Minrad's stockholders and other customary closing conditions. It is not subject to any financing contingency and is expected to close in the first quarter of 2009.
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Bajaj Hindusthan reported net loss of Rs 87.46 crore in the quarter ended September 2008 as against net profit of Rs 90.54 crore during the previous quarter ended September 2007. Sales rose 7.13% to Rs 463.11 crore in the quarter ended September 2008 as against Rs 432.30 crore during the previous quarter ended September 2007.
For the full year, net loss reported to Rs 50.17 crore in the year ended September 2008 as against net profit of Rs 51.01 crore during the previous year ended September 2007. Sales rose 2.53% to Rs 1756.28 crore in the year ended September 2008 as against Rs 1713.01 crore during the previous year ended September 2007.
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Fortis Healthcare is reportedly looking to buy a majority stake in Wockhardt Hospital. The deal size could be as big as over $100 million. Religare is likely to be the advisor for the deal and the deal is likely to be funded via internal accruals, the reports added.
Meanwhile, Wockhardt is looking for potential buyers for its French subsidiary Negma Laboratories to repay its debt to investors. It had bought the Paris-based firm for $265 million in May 1997.
The board of K Sera Sera Productions has approved raising up to $100 million through equity or debt.
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Tata Motors is reportedly undertaking a block closure of its commercial plant in the western Indian city of Pune for three days from 29 December 2008. High interest rates and unavailability of finance had depressed demand for its vehicles, the reports added.
Thomas Cook India priced its rights issue of shares at Rs 35.50 each. The shareholders will get 35 shares for every 100 held, the company said in a statement.
Titan Industries may reportedly look at spinning off its precision engineering division into a joint venture company. The division has a top line of around Rs 75 crore.
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Satyam Computer Services has called off the Matytas Infrastructure acquisition deal following negative reactions by investors. Satyam Computer's American depository receipt (ADR) fell 54% to $5.7 overnight. After market hours yesterday, (16 December 2008), Satyam had announced it will acquire 51% in Maytas Infra and 100% in Maytas Properties. The company had said the acquisition of Maytas' two companies would cost it $1.6 billion.
The board of Jaiprakash Associates will meet on 22 December 2008 to consider amalgamation of companies having synergy with itself.
The board of Colgate board has approved merging the wholly owned subsidiary SS Oral Hygiene Products with itself.
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The board of Dollex Industries has accepted the resignation of Somesh Bansal, executive director with effect from 12 December 2008.
This was decided at the board meeting held on 15 December 2008.
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The board of Vista Pharmaceuticals has allotted 42,71,395 shares of Rs 10 each at a premium of Rs 3.60 subsequent to exercise of option by the warrant holders.
These shares were allotted at the board meeting held on 15 December 2008.
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India's biggest private sector firm and oil refiner, Reliance Industries (RIL) advance tax outgo declined 15.2% in Q3 December 2008 over Q3 December 2007. However, the figures are not comparable because of a huge minimum alternate tax payment of over Rs 400 crore that had boosted the Q3 December 2007 advance tax figure.
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Firm Asian markets, expectations of a second tranche of fiscal sops from the government and hopes of additional interest rate cuts by the central bank to shield the domestic economy from the global economic recession, took the domestic bourses to intraday high in mid-morning trade. The S&P CNX Nifty marched past the psychological 3,000 mark. The BSE 30-share Sensex was up 236.19 points, or 2.44%.
The market witnessed a bout of volatility. After an initial surge, the market pared gains before bouncing back again in morning trade.
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The board meeting of Sanraa Media proposed to be held on 11 December 2008 has been adjourned to 12 December 2008.
The company made this announcement after the trading hours on 10 December 2008.
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Financial Technologies India group has inked a deal to acquire 60% stake in Botswana-based Bourse Africa, which has been licensed by government of Botswana, to set-up spot / derivative multi-asset exchange for trading in commodities, currencies, bonds and diamonds.
The balance equity in Bourse Africa will be held by other African financial institutions, banks, global multi-lateral developmental ventures, exchanges and other strategic investors.
The exchange will offer participants an efficient, cost-effective and secure trading platform, supported by a world-class regulatory framework of the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) to ensure market integrity, systemic stability and investor protection.
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State Bank of Bikaner & Jaipur has announced that R Sridharan, deputy managing director & GE (A&S) has taken over as director of the bank with effect from 29 November 2008.
The company made this announcement after the trading hours on Monday, 08 December 2008.
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The committee of Dr Reddys Laboratories has approved the grant of 20,000 stock options at fair market value to an employee of the company, pursuant to Dr. Reddy's ESOS, 2002.
The committee has allotted 21,109 equity shares of Rs 5 each of the company to employees who have exercised their stock options, pursuant to Dr Reddy's ESOS, 2002.
The committee has allotted 300 ADRs of Rs 5 each of the company to US employee of the company who has exercised her ADR Stock Options, pursuant to Dr. Reddy's Employees ADR Stock Option Scheme, 2007.
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Stringent cost cutting measures and a pursuit of operational efficiency helped the Tata Steel group (including Corus UK) report a two-fold rise in the Q2 September 2008 quarter. Tata Steel's consolidated net profit soared 215.77% to Rs 4703.64 crore on a 36.17% increase in total income to Rs 44283.34 crore in Q2 September 2008 over Q2 September 2007.
Indiabulls Securities is reportedly up for sale and is looking for an overseas buyer.
Oberoi-Trident, owned by EIH and Taj of Indian Hotels Company, damaged by the terror attacks in Mumbai last week, will get up to Rs 750 crore each as claim payments from the official reinsurer of the country which manages the terrorism pool set up exclusively to hand terror insurance.
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On BSE, 41517 shares were traded in the scrip. The stock hit a high of Rs 132.75 and a low of Rs 125 so far during the day.
India's largest commercial vehicle maker by sales had hit a 52-week high of Rs 816 on 3 January 2008 and 52-week low of Rs 122 on 20 November 2008.
Tata Motors' American depository receipt (ADR) fell 17.58% to $3.75 overnight after the company reported a 30% decline in total vehicle sales to 32,696 units in November 2008 over November 2007. The company unveiled the monthly sales data after trading hours in India on Monday, 1 December 2008, and before trading hours in the United States.
Meanwhile, the company is borrowing from the public and will pay up to a maximum of 11% annual interest on three-year deposits as the credit crunch limits its ability to refinance loans used to acquire the luxury brands, Jaguar and Land Rover, in June this year.
The company, which met with cold response from investors in its two recent separate rights issues to raise Rs 4,147 crore for part funding JLR deal, said in a newspaper announcement on 1 December 2008 that it would offer 10% interest on a minimum public deposit of Rs 20,000 for a year, 10.5% for two years and 11% for three years.
This is the first time since 1995 that Tata Motors is borrowing from public. The company did not mention how much amount it was looking to raise throught this scheme.
As per reports, Tata Motors needs fund to replace the $3 billion bridge loan it had taken to acquire Jaguar and Land Rover, the transaction for which was completed in June 2008.
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Tax deduction at source (TDS) on car-hire charges has raised a controversy. Is tax is to be deducted under Section 194C (for payment made to contractor) or under Section 194I (for payment of rent) of the Income Tax Act, 1961. Under section 194C, tax at 2% is to deducted at source if a single payment exceeds Rs 20000 or if the aggregate payments made to a person in the financial year exceed Rs 50000. Under Section 194I, tax at 10% is to be deducted at source if the rent paid/payable exceed Rs 120000 per annum.
From 13 July 2006, rent under Section 194I means any payment by whatever name — lease, sub-lease, tenancy or any other agreement or arrangement — for the use of (either separately or together) of any land or any building (including factory building) or land appurtenant to a building, machinery, plant, equipment, furniture or fittings, irrespective of any/all such owned by the payee.
Car-hire falls under renting of machinery and, hence, covered under Section 194I. Prior to the amendment, the definition of ‘rent’ did not include rent for machinery. Hence, prior to 2006, car-hire was not covered under Section 194I.
Provisions of Section 194C are applicable only where the contract is either a "work contract" or a "contract of supply of labour for works contract". Under Secction 194C, expression "work" includes advertising, broadcasting/ telecasting/ production of programmes, carriage of goods and passengers by any mode of transport other than by railways, and catering. So car-hire would fall under, "Carriage of goods and passenger by any mode of transport other than by railway".
As per circulars No 715, dated 8 August 1995, and 713, dated 2 August 1995, payment made for purchase of ticket would not be subject to TDS. But when any mode of transport is chartered, then Section 194C will get attracted.
It was argued that car-hire is a hire contract and not a service contract and cannot be covered under Section 194C. However, the Central Board of Direct Tax (CBDT), in its circular No 558, dated 28 March 1990, examined the following terms and conditions governing the contract between the owner of the buses and the State Road Transport Corporation (SRTC):
* The owner of the bus has to give his bus on hire to the corporation for plying on notified routes. * The owner has to provide a driver, with a valid licence and badge for the vehicle supplied by him. He will have to follow the instructions of the authorised officials of the corporation. * The owner has make available the bus for 14 hours a day and complete the schedules given to him for the day. * The owner has to keep the bus road-worthy by carrying out necessary maintenance and repairs. l The owner has to submit his claim twice a month. * The corporation will pay the owner a fixed cost per day in addition to per km cost, operated as variable cost.
Consequently, the CBDT has advised that although the contract may appear to be a single-hire contract, it is actually a service contract (for carrying out any work) entered into between the SRTC and the owner of the bus for plying certain buses on certain routes and subject to certain conditions. In such cases, the provisions of Section 194C are applicable.
TDS on hire charges of taxi/car charges can be covered under both Sections 194C and 194I and is a debatable issue. Clarification on the issue is awaited.
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