Telco posts massive Rs 500-cr loss in fiscal 2001
Mumbai-- Tata Engineering has announced the worst financial results in its history as for the first time its losses have crossed the Rs 500-crore mark for the full year.
Losses for fiscal 2001 stood at a whopping Rs 500.30 crore, against a profit of Rs 71.20 crore during the previous fiscal, and the company had to transfer Rs 353.70 crore from the general reserve to set off its losses.
The company’s board has decided to skip dividend payments for the year, after many years.
The reasons are not really all that hard to find.

Telco has been hit by poor sales in both the passenger car and commercial vehicle segment--its net sales during the last quarter fell to Rs 2,636.80 crore from Rs 2,770.90 crore last year.
Net sales for the full fiscal declined even more sharply to Rs 8,095.80 crore from Rs 8,789.90 crore.
Analysts opined that the company’s results were worse than expected. There was also little possibility of the company turning around in the current fiscal year, in the current demand situation.
Telco’s core commercial vehicles market has seen no signs of revival during the first two months of the fiscal year 2002.
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Reliance comes out on top, Tatas come second
New Delhi—The Reliance Group has emerged as the largest industrial group in the country this year. Reliance has relegated Tata group to the second place by posting total revenues of of Rs 60,177 crore ($12.9 billion). The turnover of the Tata Group is estimated at Rs 40,000-42,000 crore. The AV Birla Group occupies the third slot with revenues close to Rs 28,000 crore for fiscal year 2001.
The Reliance group is number one in terms of profits also with a net profit of Rs 4,222.6 crore against Rs 2,200-2,400 crore of the Tatas and Rs 1,700 crore of the Birlas in the last fiscal year.
The Tata figures are only indicative in nature since it has not announced the results for 2000-01 for all its companies. Against total revenues of Rs 36,616 crore and net profit of Rs 2,167 crore during 1999-00 by the Tata Group, the figures mentioned above for 20for the group are based on the assumption that it achieves a 10-15 per cent growth during 2000-01.
However, analysts who are tracking the Tatas say the group's financials on turnover and net profit could be even slightly on the lower side if one takes into account the performance of the group in the past three fiscals.
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Unknown party adds twist to Modi Rubber saga
Mumbai—Financial institutions after warring with the Modis over its share holding has found that a single group controls a bloc of Modi Rubber equity shares through different entities.
The institutions are working to estimate the actual equity holding of this party and establish links between the investment entities. The FIs -— UTI, LIC, GIC, IDBI and IFCI -— require 7 per cent of the equity to reach a 51 per cent holding. Of this, the predominant stake is with the insurance companies and UTI, while IDBI and IFCI have small holdings.
Analysts say that minor purchases by IDBI and IFCI -— well below the 5 per cent creeping acquisition trigger -— would enable the combined FI holding touch 51 per cent without activating the Takeover Code.

Institutional circles refused to disclose the identity of the party in question. The FIs, who have refrained from making any statement after their counter offer threat, are now watching how the numbers unfold.
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JB Chem in talks with US firm for licensing drugs
Mumbai--JB Chemicals & Pharmaceuticals is in talks with US firm NeoTherapeutics to license two drugs for which it owns product patents. The products are a sustained release form of ulcer drug ranitidine and a new formulation of anti-infective drug, metronidazole.
While the drug delivery system of ranitidine was patented in December 1998, the metronidazole formulation patent came later in July 1999. The company had appointed a consultancy to scout for licensing partners as it does not have the wherewithal to market its product in the US.
NeoTherapeutics is a development stage biopharmaceutical company engaged in the discovery and development of novel therapeutic drugs intended to treat neurodegenerative diseases and conditions such as memory deficits associated with Alzheimer's disease, aging, stroke, spinal cord injuries, Parkinson's disease, migraine, depression and obesity.
In 2000-01, J B Chemicals clocked sales of Rs 237.53 crore, up 36 per cent from Rs 174.63 crore in the previous year. Net profit was up 42 per cent to Rs 31.23 crore from Rs 22.02 crore in the previous year.
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TCS, Infosys and Wipro top software exporters in 2000-01
New Delhi—Infosys and Tata Consultancy Services and Wipro have emerged as the leading Indian software exporters during 2000-01, clocking exports worth Rs 2,870.26 crore, Rs 1,852.94 crore and Rs 1,756.39 respectively.
The overall software exports of India were better than expected at Rs 28,350 crore ($6.2 billion) during the year. Nasscom chairman Phiroz Vandrevala released these figures on Thursday.
In the fourth and fifth place stand Satyam Computer Services and HCL Technologies at Rs 1,241.22 crore and Rs 1,126.92 crore, respectively. Cognizant, Silverline, NIIT, Pentasoft and Pentamedia bring up the next five slots in the top 10 IT exporters category.
The US accounted for 62 per cent of business followed by Europe with 24 per cent, Japan with 4 per cent and the rest of the world with 10 per cent.
Pitching in to the total software revenues was the domestic market for software at Rs 9,410 crore during 2000-01 with the growth rate slipping to 31 per cent as against 45 per cent in 1999-00. In 1999-2000, the domestic market had notched Rs 7,200 crore.
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IBM launches new Linux-enabled servers for mid-size firms
New Delhi--IBM Inc says its new range of integrated mid-market servers and operating systems software will be available worldwide and this software can bring down the cost of e-business infrastructure by up to 25 per cent.
According to a company release, the new IBM e-server models are powered with enterprise server management solutions aimed at helping customers manage infrastructure complexity and reduce their costs by up to 25 per cent.
The IBM e-server I-series systems with OS/400 versions five release would ensure robustness in e-business critical processing besides rapid deployment, administartive-interface simplicity, it said.
The new servers also include native support for Linux in a logical partition, allowing customers to benefit from i-series robust scalability while integrating their core business applications with Linux.
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Satyam launches ‘Expressmeet’
New York—Satyam Webexchange, a subsidiary of Satyam Infoway, has launched a virtual conferencing tool named Expressmeet.
The tool, which has been developed in association with Tachyon Technologies, facilitates communications using multi-point data exchange, digital images and an integrated chat with white board to discuss, draw and annotate in real time. Expressmeet does not require any special software to be installed on the client's machine. It facilitates collaboration by allowing members to arrange online meetings, post images, discuss them and even make presentations.
Features include provision for uploading multiple images, annotation tools, zoom in and zoom out facility, a discussion module and a text box for posting comments on images.
The company says that Expressmeet is a platform for corporates and organisations to communicate effectively online and is more powerful than tele-conferencing or videoconferencing as it additionally offers the facility to draw and annotate online at asignificantly lower cost.
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FIs block Binani's plans to hive off zinc unit
Mumbai—The financial institutions have blocked the Binanis plan to hive off their zinc division into a separate company.
A senior FI official said this was done to recover the dues that Binani Industries owes to the FIs by way of interest. The official did not divulge the amount that Binani owes to the institutions.
Binani's net profit for fiscal 2000-01 fell to Rs 19.7 crore against Rs 21 crore in the previous year. Binani Industries has attributed its lower profit to high interest charges that rose 50 per cent to Rs 33.4 crore.
On Wednesday, FIs had vetoed the company's move to recommend a dividend payout of 20 per cent to their shareholders, again on the same grounds.
The company board had taken the decision on forming a separate subsidiary at its meeting in October '00, "with a view to raising resources for expansion by part disinvestment of the equity investment to be held by Binani Industries in Binani Zinc," a company statement had said. This was under a scheme of arrangement under Sections 391 to 394 of the Companies Act.
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VST gives BAT the green signal to raise stake
Hyderabad-- VST Industries has given British American Tobacco the go ahead to increase its stake in the tobacco major citing its "long association and commitment to VST".
BAT with a 32.1 per cent stake in the Hyderabad-based company, had on June 11 made an offer to increase its shareholding further in the company.
VST chairman Abhijit Basu told reporters after the meeting, that, "They (BAT) are our promoters and have been with us for the last 70 years. They should be allowed to increase stake in the company."
Asked whether there was any possibility of BAT increasing its stake in VST by infusing fresh capital, the chairman said that as of now, there was no such proposal.
BAT had raised 3.98 million to subscribe to the rights issue in 1998 subsequently converted into external commercial borrowing loan due to the withdrawal of rights issue, he said.
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Crompton Greaves imports electrical parts from China
Mumbai--Crompton Greaves, an LM Thapar group company has begun importing electrical components from China for its consumer products division in a bid to reduce manufacturing costs,
SM Trehan, Crompton Greaves managing director however said that his company would not join its peers in the industry to source final products like fans and appliances from China.
Other companies like Bajaj Electricals and Jaipan Industries are currently importing fans and toasters from China to meet local demand.
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BSES wants to set up transmission projects outside Mumbai
New Delhi—BSES, the Mumbai-based power utility is scouting for power transmission business opportunities outside Mumbai and in keeping with this has filed bids for distribution circles in Kanpur and Delhi and has also submitted bids to takeover the offered stake in Kanpur Electricity Supply Company and Delhi Vidyut Board. The latter is to be trifurcated into three separate distribution companies. Buoyed by its successful venture in Orissa BSES plans to bid in Kanpur and Delhi areas.
In Kanpur, BSES plans to pick 74 per cent of the Rs 60 crore equity, while the balance 26 per cent would be held by KESCO. KESCO's transmission and distribution losses are reported to be at around 35 per cent, while the non-receivables are pegged at 20 per cent.
DVB plans to privatise the three distribution companies—the first catering to south and west zones, the second to east and central zone and the third catering to the north and northwest zones.
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Kale Consultants makes loss of Rs 6.73-cr
Mumbai—Kale Consultants has posted a net loss of Rs 6.73 crore for the financial year ended March 31, 2001, compared to a net profit of Rs 8.62 crore in the previous fiscal.
According to a company release the board of directors of the company has decided not to recommend dividend said that it has made necessary provisions on a conservative basis for potential loss on investments as well as doubtful debts.
Total income for the year under review was higher at Rs 35.08 crore against previous year’s income of Rs 30.43 crore while other income stood at Rs 48.3 lakh (Rs 6.71 crore).
Export revenue for 2001 showed a growth of 62.9 per cent at Rs 27.94 crore (Rs 17.15 crore previous year).
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Glaxo gets govt nod for Hepatitis-C vaccine
New Delhi—Glaxo India has recieved the Drug Controller General of India's nod for its recombinant technology-based Hepatitis-C vaccine, a top company official said.
The company plans to introduce its vaccine under the brand name – Twinrix and is slated for launch in the next six months.
Glaxo India is also planning to introduce an anti-diarrhoeal drug by the next year and has sought DCI's approval for it.
The company introduced its smoking cessation pill Zyban recently plans to enhance its presence in niche segments.
The company recorded a net profit of Rs 70.54 crore over a turnover of Rs 934.62 crore.
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Bhel gets order to set up captive power plant from AV Birla group
New Delhi—Bharat Heavy Electricals, Bhel, has bagged an order for setting up a 23 MW captive power plant for Aditya Cements, an AV Birla group company at Udaipur in Rajasthan.
According to a statement from Bhel, the engineering procurement and construction-based order is to be executed in 15 months and scope of work comprised designing, manufacturing, supply, erecting and commissioning steam turbine generator set of 23 MW capacity to cater to the power requirements of Aditya Cement located at Shambhupura at Udaipur
The order also included matching boiler and balance of plant, apart from state-of-the-art distributed control systems (DCS), 'Max 1000', which offered fast response time resulting in higher efficiency, reliability, low operating costs and safer plant operation, it said.
The generator set and boiler would come from Bhel's Hyderabad and Trichy plants respectively, while DCS would be manufactured at its electronic division in Bangalore, it said.
The commissioning and erecting work would be undertaken by its power sector (western region), Bhel added.
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NLC posts Rs 728-cr profit in 2001
Chennai-- Neyveli Lignite, the public sector company posted a net profit of Rs 728.10 crore on a turnover of Rs 2,199.03 crore in 2000-01 as against a profit of Rs 390.49 crore registered in the previous financial year, said a company release on Thursday.
The board of directors of NLC has recommended payment of 10 per cent dividend, subject to the approval of shareholders.
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Another power deal heads for trouble
Washington—After the Enron debacle another US-based power firm, CMS Energy, is threatening to pull out of the $1.4-billion 1,600 mw Ennore Power Plant Project citing lack of cooperation and support as the factors behind the move.
A senior official in the company said that after being selected by the government to execute the project, the company had been "negotiating for several years with various government entities." He adds that the company was promised central credit support equivalent to the counter-guarantee by the Central government and by the ministries and leaders because the state electricity board could not provide the credits for it.
Adding that the various authorities have not delivered on their promises in India, the project may be in some jeopardy.
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Icra-CARE merger shelved
Mumbai—The mega merger between Icra and Credit Analysis & research has been deferred.

This is despite a Moody’s Investors Service (Moody’s) team currently touring India.
IDBI and Moody’s were the prime movers behind this business combination that would have created India’s largest credit rating agency in incremental market share terms.

Currently there are rumours making rounds that Moody’s, which holds an 11 percent stake in Icra, is planning to set up its own subsidiary in India.

Moody’s officials dispelling the rumours said, "We are happy with this association and would like to consider opportunities to increase our investment in Icra rather than set up own subsidiary here," said Moody’s senior managing director Raymond W McDaniel.
However, Icra is one of the rare breed of rating agencies around the world with a strong local brand and high quality intellectual capital.
Moody’s plan on hiking its stake in Icra from its present 11 per cent may also be delayed because IFCI the largest shareholder is unwilling to reduce its controlling stake in the entity.
Other shareholders too are not keen to reduce their stake in the profitmaking venture.
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SBP declares 23.27 percent growth in net profit
Chandigarh—The State Bank of Patiala, SPB, has registered a growth of 23.27 per cent in net profit at Rs 161.10 crore against Rs 130.69 crore last year, despite incurring additional expenditure on account of the voluntary retirement scheme.
The total income of the Bank increased by 13.42 per cent against an increase of 12.35 per cent in total expenditure during the last fiscal.
The Bank's earning per share improved from Rs 528 to Rs 651 and the book value of Rs 100 share improved from Rs 3156 to Rs 3760. The return on assets and return on equity have improved to 1.12 per cent and 17.31 per cent respectively from 1.06 per cent and 16.73 per cent.
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UTI declares Rs 12 per unit payout
Mumbai--UTI G-Sec Fund has declared an income distribution of Rs 12 per unit on a face value of Rs 100, which can be reinvested on or before 22nd June '01, said a UTI release.
The book closure for the scheme has been fixed for the period of 23rd June '01 to 1st July '01. UTI G-Sec Fund, launched in August '99, invests only in Central and State government securities and the call money market.
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BNP Paribas sets up arm in Mumbai
Mumbai--BNP Paribas, the French financial group has set up a wholly owned subsidiary in India to provide processing support for its commercial operations, including corporate and retail account management in the country.

According to company officials, "The bank has set up a call centre for retail banking business and intends to establish world-class operations at Mumbai, benchmarked against the best in the banking and financial services industry."
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MSEB registers increase in revenue by Rs 1,063cr in 2001
Mumbai—The Maharashtra State Electricity Board has registered an impressive increase of Rs 1,063 crore in revenues at Rs 11,689 crore.
Last year MSEB’s revenues stood at Rs 10,626 crore. However, despite the increase in revenues, the board's losses are likely to be in the region of Rs 2,000 crore in 2000-01.
For the last six months, MSEB has been recovering its dues on a war footing. However, all that the drive has accomplished so far is to reduce the growth rate of arrears, though the absolute quantum of arrears increased in the last fiscal.
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Titan takes employee to court for joining rival firm
Bangalore--Titan Industries has taken a former senior-level employee, Vasanth Nangia, CEO Jewellery division a to court for joining competitor company Oyzterbay. Titan obtained a stay from a civil court preventing Nangia from joining Oyzterbay, a Bangalore-based jewellery store start-up. Titan says Nangia violated an employment contract signed with the company.
Nangia resigned with two others last year and set up Oyzterbay in June 2000. Oyzterbay specialises in designer jewellery aimed at youngsters, a segment which Titan’s jewellery brand Tanishq has not ventured into till now.
The stay order becomes significant as Titan is planning in the next two weeks to come out with its own range of jewellery catering to the younger segment of the Indian populace, in direct competition with Oyzterbay.
Oyzterbay’s jewellery is priced in the average range of Rs 200 to Rs 5000 while the average price band of the Tanishq range of jewellery is around three times more.
The case says that the employment contract signed by Nangia prohibited him from taking employment or offering consultancy for a company engaged in business which is in direct competition with Titan.

Section 27 of Contract Act says "every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void."
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Star India not interested in NDTV World
New Delhi—Star India reviewing its relationship with NDTV says it is not interested in distributing the proposed infotainment channel, NDTV World.
Peter Mukerjea CEO Star India refused to divulge details, especially on Star having an editorial say vis-a-vis Star News, sources indicated that among the many proposals discussed was one to have an independent editorial board comprising noted Indian professionals and personalities.
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Mascon Global, Maars merger soon
Mumbai--Mascon Global says it will merge operations with Chennai-based Maars Software International. The merger is likely to take place in August. Mascon Global at present is working on its proposed $40 million global depository receipt issue.
Company officials said the board has decided on the share swap as well at 1:9 (one share of Mascon for every nine shares held by Maars).
Although both the companies have already started working together, they are currently in the process of completing the necessary formalities and obtaining statutory approvals.
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Six Satyam overseas subsidiaries post losses
Mumbai--Satyam Computer Services’ six overseas subsidiaries reported an aggregate net loss of Rs 298.44 crore during the financial year ended March 2001. The losses would have been higher but for other income of Rs 47.11 crore.
In 1999-2000, these companies had posted net loss worth Rs 82.67 crore.
Gross revenue touched Rs 217.39 crore (Rs 69.69 crore). Income from domestic operations accounted for 59.9 per cent of gross revenue, while exports contributed 40.1 per cent.
Satyam Infoway topped the list of loss-making subsidiaries, with its net loss ballooning to Rs 220.68 crore (Rs 28.25 crore).
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Satyam Infoway dotcom ventures depreciate
Channai--High profile investments made by Satyam Infoway in various dotcom ventures have bombed.

The India World Communication investment of Rs 501.48 crore has depreciated to Rs 399.64 crore, while its Rs 168.25 crore investment in cricket site Cricinfo Ltd depreciated Rs 20.13 crore to Rs 148.12 crore by the end of March 2001, the company has reported in its annual report.
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ABN Amro appoints JM Morgan for acquisitions
Mumbai--ABN Amro Bank has appointed JM Morgan Stanley to scan the market for a bank that fits in with the Dutch financial powerhouse’s acquisition and expansion ambitions in India.
This makes ABN Amro Bank the first multinational bank with considerable Indian interests to formally appoint an advisor on this front after the Centre’s recent decision to allow foreign direct investment of 49 per cent in the country’s banking sector.
ABN Amro Bank’s particular decision is seen infusing steam to the bank merger and acquisition juggernaut in the country: this time around from the relatively shy universe of foreign banks. The moot point, however, is that even a 49 per cent stake in a local banking entity does not allow the investor proportional voting rights as laid down under the Banking Regulation Act (1935). It is not clear, sources observed, as to what extent this will temper ABN Amro Bank’s acquisition initiatives.
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Efforts on to bring DPC-MSEB stand-off to amicable end
Mumbai--The Maharashtra State Electricity Board (MSEB) and Dabhol Power Company (DPC), now seem to be inclined to work out an amicable settlement to solve the Dabhol imbroglio.
Thus a "secret" meeting is said to have been held between MSEB chairman Vinay Bansal and Enron India managing director K Wade Cline on Wednesday evening.
Sources said both parties have agreed to weigh various possibilities for an amicable settlement as suggested by the Bombay High Court recently in view of the high liabilities involved.
Both sides are said to be of the view that the proper forum for this would be the Madhav Godbole renegotiations committee slated to meet on June 29 and 30 and that the centre will have to pay a major role in arriving at a comprehensive amicable settlement.
MSEB made it clear that the question of payment of the April bill of Rs 134 crore does not arise at this point of time as the DPC refused to accept it "under protest" and also its bank, the Bank of America, declined to deposit MSEB cheque.
As far as the May bill of Rs 140 crore is concerned, MSEB said the due date was May 25. It may not pay the May bill as the power purchase agreement stands revoked since May 23. The DPC was quite keen to know MSEB’s stand in this regard.
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DPC power could be bought by power deficit states
Ahmedabad--Delhi, Rajasthan, Karnataka, Tamil Nadu and Gujarat are among the key contenders for power from the Dabhol Power Company. But that is provided tariffs are brought down to sustainable levels.
Most of these states, facing a power shortage and are not averse to shelving some of their plans of putting up new capacities and instead buy power from DPC.
They are clear on one aspect though and that is the benchmark for the sale of power will have to be in the region of the tariffs offered by central power utilities which is around Rs 2.80 per Kwh.

Thus the maximum rate at which the Dabhol power could be affordable would be about Rs 3 per unit. But this would have to be inclusive of the transmission charges, sources said.
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