HCL wins income tax case
New Delhi: Providing relief to Shiv Nadar-owned HCL Corporation, the Income-Tax Appellate Tribunal (ITAT) has set aside the Rs804-crore demand raised by the Income-Tax Department in a dispute relating to capital gains computation on sale of shares.

HCL Corporation has termed the Tribunal's order as a vindication of its stand.

A few years ago HCL Corporation had approached the ITAT in appeal against the Commissioner of Income-Tax (Appeals) order that only gave marginal relief on the Assessing officer's demand of Rs804 crore raised on Slocum Investments (now HCL Corporation).

In January 2002 the I-T department had, after conducting search in the HCL Group premises had concluded that there was a concealment of capital gains in the transaction of sales of shares of HCL Consulting (now HCL Technologies) to Mauritius-based Wintech Investments (Overseas Corporate body). HCL Corporation, Slocum Investments and Shiv Nadar investments sold 7 million shares of HCL Consulting to Wintech Investments. However, HCL Corporation and Shiv Nadar investments were merged into Slocum Investments in August 2001.

While the sale of shares of HCL Consulting were effected at Rs50 per share (Rs10 face value) in the year 1999, the I-T department contended that `arm's length pricing' was not adopted in this transaction. It was pointed out that shares of HCL Consulting were later in December 1999 offered to public at Rs580 per share (Rs4 face value) at the time of listing.

The income-tax assessing officer held that Rs1,807 should have been the actual price per share at which the transaction should be assessed and thereby sought to bring additional income of Rs1,229 crore (7 million shares multiplied by Rs1,757) to tax. As this was under block assessment, the demand raised (at 60 per cent tax rate) with surcharge led to a demand notice of Rs804 crore.
Back to News Review index page  

Oracle acquires 4 per cent more in i-flex for Rs394
Mumbai: Oracle Global has acquired 28.20 lakh shares of i-flex Solutions on the NSE at Rs1,397.54 per share scaling its stake in the latter by 3.71 per cent.

Oracle Global Mauritius, the arm through which Oracle holds 43.08 per cent stake in the city-based i-flex, purchased this additional stake for a total consideration of Rs394 crore.
After the acquisition, Oracle's holding went up to 46.79 per cent.

Oracle had bought 41 per cent stake in i-flex from OrbiTech Ltd, a Citigroup Venture Capital International, for $900 million last year.

After the acquisition, Oracle Global came out with the mandatory 20 per cent open offer which managed to collect only 517,375 shares, representing 0.68 per stake.
Back to News Review index page  

M&M's SEZ to come up at Pune
New Delhi: Tractors and sports utility major Mahindra and Mahindra (M&M) will set up its third Special Economic Zone (SEZ) at Pune. The SEZ which is likely to see investments of Rs9,000 crore will be the company's third such facility.

The company already has a SEZ in Chennai, while a second one is coming up in Jaipur in Rajasthan. The new SEZ at Pune is expected to generate employment for around 75,000 people. The proposal has already received approval from the Commerce Ministry.
Back to News Review index page  

General Motors to invest Rs100 crore in Gujarat operations
Chennai: The word's largest automobile company General Motors will invest Rs100 crore in its manufacturing facility at Halol in Gujarat, for penetrating into the Indian small car segment, the company's vice president P Balendran said.

The company has recently launched Chevrolet Aveo, a small car and plans to roll out two other new cars — Aveo-U-VA and Optra SRV— to cater to small car segments in the next six months.

The company also plans to expand its dealership network from the present 77 to 110 besides two new parts distribution centres, one each at Maharashtra and Delhi. The company also plans to expand its car manufacturing capacity from the present 65,000 a year to 86,000.
Back to News Review index page  

R-ADAG likely to merge power, financial ventures by July
Mumbai: The Reliance-Anil Dhirubhai Ambani Group plans to merge Reliance Energy Ventures and Reliance Capital Ventures. The merger process would be completed by July this year. The companies would file petitions with the High Court seeking sanction of the scheme shortly after the April 26 meeting, REVL and RCVL informed stock exchanges separately.

The merger scheme is expected to be sanctioned during the week beginning June 5 and the companies would file the court order with Registrar of Companies for bringing the scheme into effect in the subsequent week. The record date for merger would be in the week of July 10 and the resulting companies would get listed on the bourses a week later.
Back to News Review index page  

Jaypee, Shree and Birla vie to form jt venture with SAIL
New Delhi: Jaypee Cement, Shree Cement and Birla Cement are vying with each other to form a joint venture with state-owned Steel Authority of India (SAIL) to set up a 2.5 million tonne cement plant.

SAIL would have 24 per cent stake in the joint venture, while the majority 76 per cent stake would be owned by one of the three bidders, sources said.
Back to News Review index page  

BSNL nets 2.5 lakh users under One India plan
New Delhi: Bharat Sanchar Nigam Ltd (BSNL) has netted 2.5 lakh subscribers under the One India Plan, which offers STD calls at Re 1 a minute. Private operators too said that the response to the scheme was good since the tariff plan was launched from March 1 onwards.

Operators said that One India plan, along with the lifetime validity pre-paid card offers, was set to take the subscriber growth in March to a higher level. Operators have been reporting additions of over four million new subscribers every month and this month, the numbers are expected to be close to five million.

The Department of Telecom has already said that the growth levels being witnessed by India in the mobile segment is unparalleled in the world.

Operators, including BSNL, said consumers will get further rebates in tariffs and more value-added services. One India tariff plan had also brought down the ISD rates by over 60 per cent.
Back to News Review index page  

BP opts out of Indian HPCL refinery joint venture
New Delhi: BP Plc has opted out of a joint venture with Hindustan Petroleum Corporation to build a $3 billion refinery, company officials said. According to HPCL chairman M B Lal, the British company did not find India's refining and retailing sector attractive enough.

"If I were in BP's position, I would perhaps do the same," Lal told a news conference in New Delhi.

Petroleum refining companies in the country have been vociferously demanding a hike in transport and cooking fuel prices in line with international costs.

BP has given no details on the reasons for its withdrawal. The company had signed a letter of intent in October to form the 50-50 joint venture with HPCL to build a 180,000 barrel-per-day (bpd) refinery in Bhatinda in northern India and create a network of service stations.

A BP official said late on Thursday that it would not take the letter of intent any further. HPCL said this would not affect its plans of building the refinery in Punjab state. Lal said HPCL would go ahead with the refinery as it is very important for the company.
Back to News Review index page  

IOC's losses mount
New Delhi: Indian Oil Corporation (IOC) said it is losing Rs2.40 per litre on petrol and Rs4.40 per litre on diesel, as domestic fuel prices have not moved up along with global price rises.

Company officials said the company had lost Rs1,700 crore in revenues on sale of petrol, diesel LPG and kerosene in March alone. For the full year, IOC's under-realisation is estimated at around Rs23,000 crore. The company said it is selling LPG at a loss of Rs243 per cylinder and kerosene at a loss of Rs13.10 per litre.
Back to News Review index page  

Ranbaxy offers relief to asthma patients
Mumbai: Ranbaxy Laboratories has launched its Asthma relief product Osonide (Ciclesonide) inhaler that has a once-a-day dosage. The inhaler available in HFA (Hydroxy Fluoro Alkane) based pressurised metered dose inhalers in two strengths - Osonide 160mg and Osonide 80 mg, the leading pharmaceutical company informed the stock exchanges.

This inhaler is also environment friendly as opposed to the conventional CFC (chloro fluoro carbon propellant) inhaler and ensures better delivery in patients by being activated only in the lungs, there by reducing side effects.
Back to News Review index page  

Stone India signs technical agreement with Italian firm
Mumbai: Stone India that manufactures and supplies high quality brake systems and other technical accessories for the railroad industry has entered into a technical collaboration agreement (TCA) with MZT Hepos AD, a subsidiary of Italy's Poli Construzione Materiali Trazione SpA. The agreement would help upgrade the Italian company's distributor valve, used in air brake system of railways, in compliance with the latest specifications by the Union of International Railways, said Stone India.

As per the agreement Stone India would manufacture the distributor valve for railway rolling stock from the second quarter of the financial year 2006-07.
Back to News Review index page  

Diamond Cables bags orders worth Rs46 crore
Mumbai: Diamond Cables which manufactures aluminium alloy conductors and has an installed capacity of 48,000 tonnes per annum for different types of power transmission cables, has received orders worth Rs46 crore from GUNVL, ABB, Siemens, MSEB and JITOC Exports for supplying aluminium alloy conductors. The orders would be executed between March and December 2006, the company said.
Back to News Review index page  

Jain Irrigation raises $60 million from global markets
Mumbai: Jain Irrigation Systems which manufactures and exports quality irrigation systems, pipes and fittings and plastic sheets, has raised $60 million from the international market through the issue of 60,000 foreign currency convertible bonds (FCCBs).

The company has raised the amount by way of 60,000 FCCBs of $1,000 each, having a conversion price of Rs345.50 per share. The bonds, to be listed on the Singapore Stock Exchange, have a yield to maturity of 6.75 per cent and tenure of five years, it added. Also, the company would issue 77 lakh equity shares of Rs10 each, if all the FCCBs were converted into equity shares.
Back to News Review index page  

Vimta Labs to allot 40.64 lakh shares
Mumbai: Vimta Labs, which provides multi-disciplinary contract research and testing services, will allot 40, 64,690 equity shares on a preferential basis to investors. The board of the company will allot the shares of Rs2 each at a premium of Rs188 per share to the investors as approved by the shareholders at the EGM held on March 18.
Back to News Review index page  

ONGC-Reliance-BG to get additional revenue
New Delhi: ONGC-Reliance-British Gas will get $70 million additional revenue from the sale of gas from the Panna-Mukta and Tapti Fields next year. ONGC holds 40 per cent stake in the fields while Reliance and British Gas have 30 per cent each.

This is because the gas price from the fields has been raised by about a dollar to $4.75 per million British thermal unit, resulting in increased revenue for the joint venture partners, an ONGC company official said.
Back to News Review index page  

Jet offers to pay Rs500 crore for Sahara acquisition immediately
New Delhi: Jet Airways has committed to pay Rs500 crore for the acquisition of Air Sahara to its promoters, even as the two airlines agreed to extend the transaction tenure by 90 days. The decision to pay Rs500 crore against the final payment, apart from an advance payment of Rs120 crore that Jet Airlines made in January was taken at a high level meeting between Jet Airways chief Naresh Goyal and Sahara Group chief, Subroto Roy here last night.
Back to News Review index page  

Datamatics to expand operations in Nasik, recruit 500 people
Mumbai: Datamatics Technologies Limited (DTL) that provides business process outsourcing services in the non voice segment plans to expand its operations in Nasik by recruiting 500 people in the next one-year. The company offers a knowledge associates model of employment for people who cannot commit themselves to full-time employment.

Nasik with its added advantage of abundant quality manpower will play a key role in Datamatics' growth plans, said Manish Modi, CEO and managing director, Datamatics Technologies.
Back to News Review index page  

Petronet LNG looks at gas from Australia
New Delhi: Petronet LNG (PLL), jointly promoted by PSU energy majors, hopes to sign a long term agreement by May with Australia for supply of 2.5 million tonne of liquefied natural gas (LNG) for its upcoming terminal in Kochi, while it is negotiating with other countries for more supplies.

The company says it is willing to pay at international prices for the LNG. The supply of LNG could come either from Gorgon in Australia, or an ongoing North West Shelf LNG project there.

Though the company has commitments from Qatar for 2.5 million tonne LNG for the Kochi terminal, expected to be ready by 2010, it is planning to divert the longterm committed supplies that will begin from 2009 to its 5.0 million tonne capacity terminal at Dahej, Gujarat.
Back to News Review index page  

Emco increases cap on foreign investment to 49 pct
Mumbai: Emco's board of directors had decided to hike the foreign investment limit in its share capital to 49 per cent from 30 per cent. The board also said it would raise $50 million through shares, bonds or global depositary receipts.
Back to News Review index page