CA Newsletter Mar18-Mar24

8/6/2019 CA Newsletter Mar18-Mar24

1/11

1 Pages 18th

MARCH 24th

MARCH 2011 www.xedintellect.com

BUSINESS NEWS

NEWS DIGEST

IN BRIEF

PERSONALITIES OF THE WE

COMPILED BY

INDIAN CEMENT INDUST

Gold Price : Rs. 20,674

BSE SENSEX : 18,350

INR/1 Pound : Rs. 72.66

ECONOMIC

INDICATORS

Finally, Indias Rupay

to replace Visa,

MasterCard

COVER STORY

INTERNATIONAL

NEWS

AT&T to buy T-Mobile

for $39bn

MISCELLANEOUS

NEWS

Goa, first to

announce dole for

jobless youth

XED NEWSLETTER a weekly news bulletin

(as on 24.03.201FATAL CORRUPTION IN INDIAN

POLITICS

Sanjeev Kapoor Subroto RoSahara


2/11

TOP 10 HEADLINES OF THE WEEK

1. Finally, Indias Rupay to replace Visa, MasterCard.2. Tata in league of top 50 most valuable global brands.3. RBI Raises Key Rates by 25 Bps to Lid Prices.4. Mumbai beats Delhi in per capita income.5. Refrigerator, AC prices up 10%, ice-creams costlier by 12%.6. Buffett Comes With Big Appetite for Indian Cos.7. AT&T to buy T-Mobile for $39bn.8. China continues to trim its US debt to avoid risks.9. Goa becomes first state to announce dole for jobless youth.10.Nine out of ten Indians ready to go overseas for jobs.

ECONOMIC INDICATORS

INSTALLED WIND POWER CAPACITY IN THE WORLD

China overtook America as the world leader in windpower in 2010, according to a new annual report by

the Global Wind Energy Council. The chart shows thefive countries that make the greatest use of windenergy. Over the past decade, China's installed windcapacity has grown exponentially, from just 0.3GW in2000 to 42.3GW last year, and now accounts for 22%of the worlds total wind power capacity. In 2010 it

installed more turbines than America. The picture fothe industry as a whole is less good, though. 2010was the first year in which less capacity was installedthan in the previous year.

The development ofwind power in India began in the 1990s,and has significantly increased in the last few years. India is theworlds fifth largest wind power producer, with an annualpower production of 11.80GW.

Renewable energy is the most sustainable andeconomically viable energy that we do not use. Hencewe need to start consciously making a change in theway we utilize fuel. This means slowly but surelytransferring the fuel burden from non-renewablesources to renewable sources, and working to fix oat least stop adding to emissions problems that leadto global warming.

Stock Market Indices as on 24thMar11 Values

BSE SENSEX 18,350Gold Price per 10 gram 20,674

Current Market Rates as on 24th Mar11 Values

Rupee / 1Dollar 44.77Rupee/ 1Pound 72.66


3/11

SADIQ BATCHAS DEATH: FATAL CORRUPTION IN INDIAN POLITICS

First casualty of 2 G scam: Sadiq Batcha the realtor and a close business associate offormer communications minister A Raja was found hanging dead at his residence. He was toboard the flight next day from Chennai to Delhi to present himself before the CBI. In thedeath note, Mr Batcha blamed nobody for his death, but was evidently embarrassed by raidsand media limelight over the 2G spectrum scam. A bunch of printouts which read: "I willbecome the richest man on earth;My son will become a businessman like Mukesh Ambani"were found pasted on the wall mirrors of his room. These were mission statements that boretestimony to the ambition that drove the man. The doctor, who conducted autopsy on the

body of Sadiq Batcha, resigned to contest the upcoming elections further fuelling speculationthat this might be a ploy by some to hide the actual details behind Batchas death that couldhave provided greater insights into the 2 G case.

The curious case of Sadiq Batcha and likes: Earlier it was Anna Nagar Ramesh and now itis Batcha. There are striking similarities in the circumstances surrounding the deaths ofBatcha and Ramesh, except that in the latter case an entire family had perished. Chennai police was allegedly afterRamesh in an extortion complaint filed by contractor Deivasigamani in which Stalin was cited as a beneficiary. Like

Batcha who was introduced to Raja by Varahur Arunachalam, an AIADMK leader. Ramesh too wasclose to AIADMK veteran S D Somasundaram before winning the confidence of Stalin. Strangely,in Rameshs case a suicide note was found containing undertones similar to the one conveyed inthe letter purportedly left behind by Batcha. DMK leader J Jayalalithaa pointed out thatAndimuthu Raja, the main accused in the 2 G case ought to be provided a protective cover.

Otherwise he could also go the Sadiq Batcha way.In another similar case Durai who grew from

strength to strength as Chennai's commissioner of police to DGP during his tenure thanks to his

proximity with DMK, was found dead at his residence in Chennai barely months after retirement

He was under pressure from the state enquiry committee in connection with some illegal land deals

which might have disclosed a few big names.

His meteoric rise and spectacular fall: Batcha hailed from Raja's constituency Perambalur insouth Tamil Nadu. First he tried to sell clothes, suit pieces and saris, music systems, andelectronic goods, door-to-door. Peddling his wares which were stocked on the back on his bicycle.Batcha initially floated his real estate business in Dindigul and Karur, Tamil Nadu, and graduallyexpanded it across the state. Green House Promoters, a firm that was founded barely four monthsafter Raja became a cabinet minister, allegedly became one of the firms from where the kickbacksfrom the 2G scam that Raja & Co. made were routed into other ventures. Batcha along withShahid Balwa of DB Realty was accused of making investments for the DMK MP in real estate.

Green House Promoters which was started with a paltry initial investment of Rs 1 lakh grew into acompany worth several hundred crores by 2010.

Controversies surrounding the man: In 2007, as Raja became the telecom minister, BatchasCompany Green House opened its branch in Singapore. It was reported that Foreign Exchange Management Act(FEMA) and Reserve Bank of India guidelines were relaxed regarding the setting up of the foreign arm and thesubsequent money transfers between them. The company also entered into an MoU with the tyre manufacturer MRF

for selling land for a Rs 900-crore tyre project. It bought land cheap from villagers and sold it to MRF at exorbitantprices.

The mess of 2G, Swan telecom, DMK and Underworld: The CBI investigating the 2Gcase might be targeted by D-Company in a bid to destroy the documents that relate to theirregularities in allocation of 2G spectrum. Intelligence agencies are looking into the allegedunderworld connection of Shahid Usman Balwa, who is under arrest in the 2G scam. Swantelecom is a joint venture between Etisalat, a state-controlled telecoms group of UnitedArab Emirates and Balwas D B Realty. It bagged 2G licenses for 13 of the 22 circles acrossIndia, circles that included crucial Mumbai and Delhi areas, for a paltry Rs. 1,537 croreWithin months it sold 45% stake to Etisalat for Rs. 4,500 crore. Swan Telecom has nowbeen re-named as Etisalat DB Telecom India Pvt. Ltd. Tracing where the money had gonefrom the 2 G scam, investigations revealed that there was a transaction of about Rs 214

crore from Balwas Cineyug Films to DMK-owned Kalaignar TV in 2009. However in its defence Kalinagar TV said thatthere were differences over the evaluation of shares, and it had returned the Rs 200 crore it received from CineyugFilms till August 2009 with an interest of Rs 31 crore.

Message to the Masses:There are many people out there dreaming of power and pelf - who see politics as a way to

get rich quick. Batcha indeed amassed huge wealth; he didnt bother when his driver ran away with his Rs 6 Cr. His

association with power earned him money. However he did not realize that power comes at its own price. That it

might be as expensive as his life.


4/11

PERSONALITIES OF THE WEEK

SANJEEV KAPOOR: The Kitchen KingSanjeev is a Chef Extraordinaire, TV show host, author of best selling cookbooks,restaurant consultant and winner of numerous culinary awards. He has launchedbrand Wonder chef which promotes a range of cookware, kitchen tools andaccessories. He has more than 15 outlets of hisThe Yellow Chillichain of restaurantsin India and abroad.

Background: Sanjeev Kapoor was born on April 1964. He is married to Alyona

Kapoor and has two sons. He holds a Diploma in Hotel Management from the IndianInstitute of Hotel Management (IIHM) Pusa. He started his career in the IndianTourism Development Corporation under their kitchen management scheme. Later hebecame the Executive Chef of the Centaur Hotel in Mumbai.

Khana which brought khazana: He shot to fame with his cookery show KhanaKhazana which was an impromptu show on television. It has won Best Cookery Show award by Indian TelevisionAcademy and Indian Telly awards year after year and is also longest running TV show in any category on any channel.

Food is entertainment: Sanjeevs television company Turmeric Vision Pvt. Ltd in association with Malaysia's leadingcross-media group Astro All Asia Networks (Astro) has come up with a 24 x 7 Food Channel Foodfood. The channelwill feature shows about food and food lifestyle. Home Shopping channel, HomeShop18 is presenting Chef KapoorSuper Tandoor.The innovative tandoor is an Italian product developed specially by Sanjeev Kapoor to meet thedemands of lowering consumption of oil in cooking.

Icing on the cake: Sanjeev Kapoor is on the panel of Ministry of Tourism, Govt of India, made specifically todocument Indian Cuisine and release an authentic version of it. He has also been conferred the award for Best Chef othe year by the Ministry. He has won several awards including Brand Leadership award for Marketing Excellence in2006 and the Hall of Fame Award for excellent contribution to the field of hospitality. He was one of the chief

speakers/presenters at the Worlds of Flavor, 2005 International Conference & Festival organized by The CulinaryInstitute of America. As a speaker at IIT Chennai he covered 30 Indian things to eat before you die. Sanjeev was anintegral part of the catering team for the 1982 Asian Games and the SAARC summit at Shillong.

SUBROTO ROY SAHARA: India Ka SaharaBorn to a sugar mill worker, Subroto Roy founded Sahara in 1978 with 5 and aLambrettascooter which was used to zip between clients in the poor northern state ofUttar Pradesh. Sahara is now one of Indias largest savings groups and forms thebedrock of a sprawling conglomerate worth more than 5 billion. Subroto Roy has

received the award TV Icon of the Year- Indian Television Awards 2007.He has alsoreceived the Global Leadership Award in 2004.

Where he came from:Subroto was born on 10th June 1948 at Araria, Bihar to ShriSudhir Chandra Roy and Smt. Chhabi Roy. He holds a diploma in MechanicalEngineering from Government Technical Institute, Gorakhpur and is married to Swapna.His company Sahara is based upon Subroto Roy Saharas belief in the ethos of a family(Pariwar).He has also written two books 'Shanti, Sukh & Santushti and Maan,Samman, Atmasamman on the philosophy of life.

What he achieved:Maharashtra Cricket Association has announced to name its ultra modern Stadium at Pune asSubroto Roy Sahara Stadium. Subroto recently had a meeting with Japanese Prime Minister where he sought hisassistance for converting his ambitiousAamby Valley Cityproject into an environment and energy efficient model othe world. Sahara was termed by the Time magazine as the second largest employer in India after the Indian

Railways.

On the flip side: The steep rise of Subroto Roy as a property business tycoon is rumored to be the result of his closeassociation with the leader of Samajwadi Party Amar Singh and its founder, Mulayam Singh Yadav. In the recent spatof controversies it was alleged that the company failed on its promise to develop 217 townships all over the countryunder the scheme Swarna Yojna. In a bid to rescue its image the company offered a meager compensation to peoplewho had enrolled in the scheme.

Samaaj Seva: Subroto Roy is involved in philanthropic activities like monthly financial assistance to the families of

the Martyrs of the Mumbai Nov '08 terror attack and to the families of Kargil War Martyrs. He also overseas

programmes for education and nutrition of children and women, adult literacy and mass marriage ceremonies of 101

underprivileged girls on an annual basis. In this emotionally integrated family nobody ever felt the need of a trade

union which is the most profound example of corporate discipline.


5/11

BUSINESS NEWS

1. Finally, Indias Rupay to replace Visa, MasterCard-TNN Mar 22After almost two years of planning, the National Payments Corporation has at last finalizedthe proposed unique India Card which once commercially launched would be an domesticalternative to the global real-time payment processing firms like Visa and MasterCard. Theleading financial consultancy firm Ernst & Young (E&Y) will develop and roll out the entirearchitecture, including the design and software for the Rupay card, name given to IndiaCard.

In 2009, the RBI had asked the Indian Banks Association to launch a not-for-profit companyand design a rival card, then tentatively called India Card, that meets the requirements o

the domestic banks. Domestic banks now have no option but to tie up with Visa or MasterCard for connectivitybetween cardholders, merchants and issuing banks not just within the country, but across the globe in the absence oa domestic card. But now the Rupay card would eliminate the need for this connectivity.

2. Tata in league of top 50 most valuable global brands- BT Mar 23The home-grown Tata brand has been ranked as the first Indian brand to be in the top 50 club ofglobal brands as per the latest Brand Finance's Global 500 report. The group's brand value ispegged at $15.8 billion as compared to $11.21-billion in 2010, a press release issued here todaysaid.

As per the Brand Finance's Global 500 2007 report, the brand value of Tata was $7.38 billion,indicating there has been an 100 per cent appreciation for its brand value. There has been a

steady progress in Tata brand value to reach the 50th position among other global brands. In2007, Tata brand was ranked 103 and now in 2011 it is ranked among the top 50, the release said.

3. RBI Raises Key Rates by 25 Bps to Lid Prices- ET Mar 18The Reserve Bank of India raised policy rates for the eighth time in a year by theexpected 25 basis points to tackle inflation that is running disproportionately higher witha potential to whittle down the governments cherished 9% economic growth. ComeApril, borrowers will pay more per month on their home and car loans. Companiesinterest expenses will go up as banks raise their lending rate to pass on higher cost ofdeposits in the last two months.

The central bank said economic expansion is at risk as soaring commodity and oil pricesdue to civil strife in North Africa and West Asia could affect investments even as it pursues anti-inflationary policyRepo rate, the rate at which the RBI lends to banks, has been raised 25 basis points to 6.75% which is still 1.55

percentage points lower than the inflation rate. A basis point is 0.01 percentage point. All other rates remainunchanged. The next monetary policy review is scheduled for May 3.

4. Mumbai beats Delhi in per capita income- TNN Mar 23Lakh The per capita income (PCI) of the countrys financial capital is a modest Rs 8,000more than that of the national capital. Mumbais PCI for 2009-2010 stands at Rs 1.25 lakh,up Rs 15,000 from Rs 1.10 lakh in 2008-09, according to the state economic surveyreleased on Tuesday.

But Mumbai bewarethe Delhi state budget, also presented on Tuesday, estimates thatthe rajdhani's per capita income for 2010-11 will rise to Rs 1.36 lakh from Rs 1.17 lakh in2009-10. Pune and Thane, the other two economic powerhouses that make up Maharashtras golden triangle, werenfar behind Mumbai, both crossing the Rs 1 lakh threshold. Punes grew by about Rs 15,000 to Rs 1.11 lakh in 20092010 while Thanes went up Rs 12,000 to Rs 1.05 lakh.

5. Refrigerator, AC prices up 10%, ice-creams costlier by 12%-ET Mar 19Be prepared to pay more for some cool comfort this summer. Summer temptations such as buyingan air conditioner or refrigerator, and stocking ice creams and juices may cost more becausemarketers have increased prices on soaring input costs. Home appliance majors such as LG andSamsung have increased the prices of air conditioners and refrigerators up to 10%, while Amuland Vadilal have made their ice creams up to 12% costlier, to offset rise in prices of raw materialssuch as milk and sugar as well as packaging materials.

Prices of aluminium, copper and steel, which are key raw materials for air conditioners andrefrigerators, have surged up to 60% in the last six months, putting pressure on the profit margins

of companies. Even modern retailers have resorted to such a trend for their private labels. The country's top retailerFuture Group has increased price of its Tasty Treat mango drink by 5% to 62 for a bottle of two litres.


6/11

6. Buffett Comes With Big Appetite for Indian Cos-ET Mar 23Billionaire investor Warren Buffett said he is looking forward to using the enormous cash pile offlagship firm Berkshire Hathaway to acquire companies in India, which he described as a large,and not an emerging, market. The Omaha, Nebraska-based Berkshire has made two largeacquisitions in the past one year, buying chemicals additive firm Lubrizol for about $9 billion afew days ago and railroad firm Burlington Northern Santa Fe for about $26.5 billion last year.The cash pile on its books is estimated at $38.2 billion.

Buffett will also use the India visit to join his billionaire friend and Microsoft founder Bill Gateson a mission to push wealthy Indians to pledge money for a global philanthropic drive called the Giving Pledge.

Witty, down-to-earth and very unassuming, he showered praises on Ajit Jain, the Indian head of Berkshires reinsurance business who, Buffett said, had made more money for the company than the legendary investor himself.

7. HCL Infosystems bags `300-crore order from IAF-BS Mar 18Information technology hardware company HCL Infosystems today said it had baggeda `300-crore order from the Indian Air Force (IAF) to deploy portable wirelessnetwork across various Air Force stations.

According to the contract, HCL Infosystems will deploy Wideband CDMA-basedPortable Wireless Network (WCDMA), which will ensure video interactivity for video

calls, cross connectivity with other communication platforms within the Air Force Network (AFNET), the company saidin astatement. The WCDMA network will be integrated with AFNET, which was deployed by the same company.

8. Fall in global sugar prices discourages exports- BS Mar 17Falling sugar prices in the recent weeks in international markets have made exports anunviable proposition. Sugar prices have come down to nearly $675 per tonne in internationalmarket from over $850 per tonne in January. In india, at present sugar prices are in therange of `2550 to 2,700 per quintal which leaves hardly any margin for exporters at thecurrent international prices. Similarly wheat prices are quoted at `1300 per quintal in Delhimarket and in other markets it is ranging between 1100 and 1200 per quintal.

Sugar industry believes that Brazil has started offloading sugar from the global market heavily affecting the price onexchanges and now it appears to be a missed opportunity for Indian sugar mills and exporters. Due to the delays inthe government decision on allowing 500,000 tonnes of sugar for exports and the drastic fall in sugar prices in theglobal markets, industry sources believe that exports are now non lucrative.

9. HM Scripting Popular Twist to Ambassador Story-ET Mar 19The quintessential Ambassador is set to get its most radical makeover in the six

decades of its history. The oldest face of Indian automobiles, which carries the legacyof the British Raj on its wheels, will undergo a complete changefrom structuradesign to aerodynamics to aesthetics. The car's manufacturer, Hindustan Motors, ishoping that a new-look Amby will be able to compete with today's modern cars andthus stop a slide into oblivion.

The last significant makeover of the Amby took place in 2004 when HM launched are-designed version. Branded Avigo, the car drew influences from the Mini and the

Porsche. HM will be hoping that the current revamp works as this may well be the last chance the company gets tokeep the country's oldest car factory running.

10.TIL-Nimbus bags IPL media rights- TNN Mar 22Eagerly looking forward to a bigger and even more exciting IPL but worried that your hecticschedule may not always allow you to follow the action? Dont worry, you can catch all the

exciting moments on Internet, mobile phone and radio, thanks to a ball-by-ball coverageand analysis provided by Times Internet Limited (TIL).

A consortium of TIL and Nimbus Communication has acquired the IPLs global Internet,mobile and audio rights, along with TV rights in specific territories outside India, for thenext four years. The consortium bagged the rights with a bid of Rs 261.6 crore in Chennaion Sunday. While TIL will own the net, mobile and audio rights, Nimbus will control TV rights in specific territoriesoutside India. However, Set Max will continue to hold TV broadcasting rights in the Indian subcontinent and severaother regions. TIL is the Internet and mobile venture of Indias largest media house, the Times Group. Its flagshipportal, Indiatimes.com, commands over 575 million page views per month.


7/11

11.FBs virtual currency may become real for Indians too- BS Mar 21Facebook Credits, a virtual currency which enables the users of the social networking site to watchfilms and buy various applications, may become available in India too. Beam, a mobile-commercecompany, has sought the Reserve Bank of Indias permission to make Facebook Credits available

in India. Facebook has over 600 million global members. It has six million users in India.

Facebook gives points to subscribers based on usage and lets users buy virtual stuff on the site. Itretains 30 per cent as fee. Facebook introduced the concept two years ago in the US. Thecurrency can also be bought at retail stores such as Walmart, Best Buy and Target by paying reamoney. Ten Facebook Credits can be bought for $1.Facebook Credits reached anew level of

popularity earlier this month when Warner Brothers decided to stream Batman: The Dark Knight on the site.

12.TCS, Infosys, Wipro and HCL see 5% rise in pricing on higher salary costs- ET Mar 22For the first time since the Lehman crisis that forced customers to shelve projectsand bargain for lower billing rates, Tata Consultancy Services (TCS),Infosys, Wipro and HCL are beginning to see an uptick of up to 5% in pricing, drivenby higher salary costs and improved business environment.

Rising wages, inflation, and attrition of key staff are some of the reasons driving upbilling rates for outsourcing contracts. Most new contracts now come with clausesthat address the risks of future salary hikes, foreign currency fluctuations, andinflation in countries such as India. Improving employment scenario and shortage of trained manpower is leading tohigher wages in the technology sector in the US. As wage hikes lead to IT costs for companies rising internally theyare more likely to increase prices for vendors.

13.Amazon.com sued by Apple over App Store-Bloomberg Mar 22Apple sued Amazon.com, saying the online retailer is using Apples AppStore trademark for a mobile software developer program. Apple, in acomplaint filed March 18 in federal court in northern California, accusedAmazon.com of trademark infringement and unfair competition and asked foa judges order to prevent the company from using the App Store name, as

well as for unspecified damages.

Amazon also plans to use the name with a mobile-software download servicethe complaint states. Amazon began using the App Store designation around

the beginning of this year, according to the lawsuit. Apple claimed that Amazon has been advertising on its website aprogram called Angry Birds Rio that will be offered soon. Angry Birds is the name of a popular program in Apples App

Store.

14.I-T department freezes accounts of Mahindra Satyam-ET Mar 22The Income Tax department Tuesday froze the bank accounts of Mahindra Satyam afterthe IT firm failed to pay a tax demand of Rs.616 crore (Rs.6.16 billion/$137 million). Thedemand notice was issued on the basis of the income declared by the company during thetime of Ramalinga Raju. The department refused to buy the line that Satyam hadfictitious income and insisted it was real income. Mahindra Satyam, the new brandidentity of Satyam Computer Services Limited, has moved Andhra Pradesh High Courtchallenging the demand notice and seeking a stay on the proceedings.

The Mahindra Group company said that it is surprising that the Central Bureau ofInvestigation (CBI) and other government agencies were prosecuting former Satyam chiefB. Ramalinga Raju for showing fictitious income, but the CBDT made the same fictitiousincome a basis for demanding the taxes. The development could hamper the recovery of

the fraud-hit company , which was once the country's fourth largest IT firm.

15.Emami looking for more celebrities; signs on Kangana-PTI Mar 21Homegrown FMCG major Emami Ltd, which boasts of over 25 celebrity endorsers, is expandingthe list with the addition of Bollywood actor Kangana Ranaut as brand ambassador for its skincare products.

It is now adding 'Tanu Weds Manu' star Kangana to endorse the skincare range ofproducts. Already Kareena Kapoor endorses 'Boroplus' brand, while Basu was recently roped into promote other skincare products. Beyond celebrities from celluloid, Emami is now alsolooking to widen its list of sportspersons. The company spends about Rs 250 crore onmarketing initiatives including television commercial, celebrity endorsements and other below

the line activities.


8/11

16.Bottling up expenses -TNN Mar 21Vijay Mallya-led United Spirits (USL) will invest around Rs 600 crore to set up glassmanufacturing plants, as the worlds largest liquor firm by volume tries to rein in volatileinput costs. USL is probably the biggest user of glass bottles by tonnage with its volumesales crossing 112 million cases (of 9 litre each) in the current financial year. Indias glassindustry, which is dominated by players like Hindustan National Glass (HNG), has increasedthe prices by 10-12% in the last few months. The groups flagship USL controls around 55%share of Indias branded spirits industry.

Glass is probably the second most key input after molasses in the production of packaged spirits brands. USL has

experimented with tetra packs for some of its regular-priced brands in states like Andhra Pradesh and Karnataka. Butthis has been limited to smaller 180 ml packs and regular brands. Besides, the cost of investment in tetra packs isrelatively higher.

17.GM faces labour unrest again, indefinite strike at Halol Plant- ET Mar 18General Motors India is again facing a labour unrest, the second time in the last 14 monthsat its mother plant in Halol. Production has come to a standstill, and over 700 workers have

joined an indefinite strike at the company's Halol plant near Vadodara. Till Thursday evening,there was a production loss of 285 vehicles. GM India employs 1,600 people at its Halol plantof which 1,000 are workers.

The striking workers have formed a new union under INTUC and have alleged that they weresubjected to excess workload. The workers alleged they were facing health hazards and the

company has violated PF Act, gratuity norms and rules of Industrial Safety and Health Act. The striking workers

alleged that some of their colleagues, who voiced their grievances about health issues, were shunted to dealer andsub-dealer outlets across Haryana, Gurgaon and Andhra Pradesh. The company has termed the strike illegal

18.GMR boss pledges $340m for edu- TNN Mar 23GMR Group chairman Grandhi Mallikarjuna Rao, a first-generation entrepreneur hailing fromSrikakulam in Andhra Pradesh, on Tuesday pledged $340 million (Rs 1,540 crore), which isequivalent to his personal share in the infrastructure conglomerate, to improve education amongthe undeserved sections of the society. Rao has committed his funds to the groups charitablewing GMR Varalakshmi Foundation, which has a presence in India and abroad, focuses oneducation and vocational training for the underprivileged.

The 60-year-old G M Rao, who started as a jute trader three decades ago, went on to create a Rs5,000-crore enterprise spread across energy, airports and roads. HCL founder Shiv Nadar gifted Rs 580 crore to hisfoundation that works to strengthen the countrys education framework. While these new-generation entrepreneurs

are ploughing back a part of their wealth for the society, traditional conglomerates such as Tatas and Godrejs havegifted some of their holdings to charitable trusts engaged with learning institutes and hospitals.

19.Nippon Life agrees to 5-yr lock-in- TNN Mar 23Japanese insurer Nippon Life has agreed to lockin investment for 26% stake in Reliance LifeInsurance for a period of five years. In return for the stake, the company will get onepermanent board seat and will also get to recommend one independent director forconsideration on the board.

Interestingly, although there is government proposal to increase foreign direct investment ininsurance to 49% there is no clause providing for a higher stake. Both the partners havedecided that if higher FDI is indeed permitted they will commence discussions afresh in goodfaith. If Nippon Life does not increase its stake Reliance Life can bring in a financial investoror sell shares through an initial public offering.

20.Gorkha blockade to hit Darjeeling tea companies-ET Mar 21Darjeeling tea companies can see losses brewing after the Gorkha Janmukti Morcha(GJM) has put an embargo on movement of teas. The first flush tea, which is entirelyexported and fetches the maximum revenue, cannot be shipped if the GJM embargocontinues. Incidentally, the first flush teas fetch price anything between Rs 2,000 andRs 12,000 per kg.

GJM's agitation in the Darjeeling hills took a new turn with its trade union wing in thetea sector calling for an embargo from March 4 on the despatch of manufactured orthodox tea from the gardens in theregion. The GJM-affiliated Darjeeling, Terai, Dooars Plantation Labour Union is, among other things, demanding theintroduction of variable dearness allowance for tea workers and an upward revision in their daily wages from thepresent Rs 67 to between Rs 120 and Rs 154.


9/11

INTERNATIONAL NEWS

21.AT&T to buy T-Mobile for $39bn-TNN Mar 22AT&T said on Sunday that it will buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion that would make it the largest cellphone company in the US.AT&T would finance the cash part of the deal with new debt and cash on its balance sheet andwill assume no debt from T-Mobile.

AT&T is now the countrys second-largest wireless carrier and T-Mobile USA is the fourthlargest. The acquisition would give AT&T 129 million subscribers, vaulting it past Verizon

Wireless 102 million. The combined company would serve about 39% of US cellphones. T-Mobile USA customers would get access to AT&Ts phone line-up, including the iPhone

22.China continues to trim its US debt to avoid risks-ET Mar 18China, the biggest foreign holder of US debt has trimmed its portfolio to $1.15 trillion todiversify its foreign reserve portfolio to avoid risks. China reduced its US Treasuries portfolioby $5.4 billion to $1.15 trillion in January, according to the data released by the US TreasuryDepartment on Wednesday. It is the third straight month of net selling after China's holdingsof US debt reached a peak of nearly $1.18 trillion in October 2010.

The $5.4 billion cut in China's holdings doesn't seem large by itself, but when China's ever-growing foreign exchange reserves are taken into account it translates into a sharp decline inthe proportion of US debt in China's foreign exchange investment portfolio, said Lu Zhengwei,chief economist at Industrial Bank.

23.Ford wants to raise its game in ASEAN- Reuters Mar 23Ford Motor Co said on Wednesday it planned to introduce eight new vehicles intoSoutheast Asia over the next five years as part of its effort to win market share in thefast-growing region. The second-largest U.S. automaker has had a "favorable" yearso far with sales across the region over the past two months rising 175 percentdriven by sales of its Fiesta small cars, Peter Fleet, president of Ford ASEAN, toldReuters.

Ford would be using its manufacturing base in Thailand as the hub for that growth incountries of the Association of Southeast Asian Nations (ASEAN). Ford has less than 2

percent of the ASEAN and Thai markets. Toyota Motor Co had by far the biggest share of the vehicle market inThailand in 2010 with 40.7 percent. Thailand is home to Ford's largest sales operation in ASEAN.

24.India, China, Russia oppose air strikes on Libya- ET Mar 21India, China and Russia Sunday opposed the Western air strikes on Libya, withMoscow demanding a dialogue to end the "bloodshed". The Indian foreign ministrysaid nothing should be done that aggravates the worsening situation for the people ofLibya, where a revolt erupted in February against the four-decades rule of MuammarGaddafi.

It said the Indian government hoped that the air attacks would not lead to greaterharm to innocent civilians, foreigners and diplomatic missions and their personnel stillin Libya. New Delhi urged all parties "to abjure use of or the threat of use of force and to resolve their differencesthrough peaceful means and dialogue in which the UN and regional organisations should play their roles". Russia andChina echoed similar sentiments. India, China and Russia were among five countries that Thursday abstained fromvoting on the UN resolution which authorised the use of force and the creation of a no-fly zone in Libya.

25.France fines Google in Street View data case- Reuters Mar 21The Commission nationale de l'information et des libertes (CNIL) told Google in May2010 to stop the practice and asked it to turn over a copy of the information it hadcollected. Google's problems with data collection within Street View, which lets usersclick on maps to see photographs of actaul roads and their environs, started last year.

At that time, Google disclosed that its Street View cars around the world had collectedprivate data, such as emails and Internet surfing records, from unsecured wirelessnetworks. That led to the regulatory authorities in a number of countries, includingFrance, the United States, Switzerland, the UK and Singapore to look into Street View

"We are profoundly sorry for having mistakenly collected payload data from unencrypted WiFi networks," said PeteFleischer, Google's global privacy counsel, in an emailed statement.


10/11

MISCELLANEOUS NEWS

26.Goa becomes first state to announce dole for jobless youth-ET Mar 18Goa on Thursday became the first state in the country to announce a dole for theunemployed. Chief minister Digambar Kamat presenting the state budget alsoannounced pension for senior citizens and a package for farmers, the girl child and otherweaker sections.

The monthly dole will be applicable only to unemployed under-graduates, who havebeen registered with the state employment exchange, and will be provided for a

threeyear period. The government has proposed a monthly unemployment subsistenceallowance of a maximum of Rs 1,200 to those who have passed Class XII. The less qualified will receive less.

27.Nine out of ten Indians ready to go overseas for jobs-PTI Mar 21As many as nine out of ten Indian employees surveyed are willing to move out for the right

job, with people even ready to relocate to another country or continent, according to KellyServices. A survey by workforce solutions provider Kelly Services revealed that 89 per cent ofIndian employees were willing to move out for the right job. Of them, 49 per cent wereprepared to relocate to another country or continent to get the job of their choice. As per thefindings, men are more willing to move out than women.

Among the Indian jobseekers, 36 per cent preferred Europe as their favourite place foremployment, followed by Asia Pacific (20 per cent), North America (19 per cent) and the

Middle East (7 per cent). "Oil & gas and hospitality sector witness maximum global relocation (81 per cent and 73 per

cent, respectively)," the survey said. The observations are based on a survey of about 2,000 people in India.

28.Black money case: Hasan Ali's income multiplied in 6 years to Rs 54,268 cr, says CAG report-ET Mar 18Income of Pune-based stud farm owner Hasan Ali Khan multiplied by over 100 timesin six years from Rs 529 crore to Rs 54,268 crore in 2006-07, reveals CAG reporttabled in Parliament today. Khan, who is presently in custody of the EnforcementDirectorate, has not filed returns for several years despite earning crores,Comptroller and Auditor General of India (CAG) said.

His taxable income, according to the assessment made by Income Tax Authorities, jumped from Rs 528.9 crore in 2001-02 (assessment year) to Rs 5404.7 crore in2002-03. Thereafter, it soared to Rs 54,268.6 crore in 2006-7. The report furthersaid that Hasan Ali did not file income tax returns for five assessment years from 2001-02 to 2003-04 and 2005-07. However, he filed the tax returns for these years in May 2007 after IT notice following search operations.

29.Enrolment in primary schools plunges 2.6 million in 2 years- TNN Mar 21It is a lesson in misplaced enthusiasm. While the Centre has been busy tom-tommingits efforts to send more children to school, enrolment in primary classes in thecountry has, in actuality, dropped since 2007. The biggest setback was witnessed inUttar Pradesh, where admissions plummeted by over a million in the last two years,according to the latest data released by the human resource development ministry.

Ironically, it was last year that the Centre cleared the Right To Education Act makingeducation a fundamental right. Experts are at a loss to accurately explain the drop inenrolment in northern states, where birth rates have essentially remained the same.

In some southern states, where population planners had predicted a slowdown in birth rate, primary schoolenrolments have unsurprisingly declined.

30.4 of 10 med students in state flunked last year- TNN Mar 22The class of 2010 has recorded the lowest-ever pass percentage among aspiring doctors.The failure rate has doubled, with about four out of every 10 students failing to clear theexam. An analysis of the results provided by the Maharashtra University of HealthSciences (MUHS) reveals that, in the recently concluded exam, the overall passpercentage stands at 68.68%, an embarrassing dip from the times when the universityused to record a pass percentage of over 80%.

All through the early years of the decade that went by, most health science students cleared their examinations righin the first attempt. Now, not only has the number of shots at taking the test gone up but even the overall marksscored by candidates have fallen, say faculty. Whether its the course structure or the load that a professionaprogramme brings with it, faculty at many private colleges feel there is a huge mismatch in the students selected andthe demands of the course, which has now resulted in a poor outcome.


11/11

INDIAN CEMENT INDUSTRY

India is the second largest cement producer in the world after China with a totalcapacity of 151.2 Million Tones (MT). Cement production in India is expected torise to 236.16 MT in FY11 and 262.61 MT in FY12.The cement industry comprisesof 125 large cement plants with an installed capacity of 148.28 million tonnes andmore than 300 mini cement plants with an estimated capacity of 11.10 milliontonnes per annum. The industry saw government control in the year 1956 toensure fair price model for consumers and manufacturers. A couple of years later,government introduced a three-tier pricing system with different pricing on

cement produced in high, medium and low cost plants. There is a huge scope forgrowth in the industry as per capita consumption of cement in India is lowest inthe world with 125 kg.

The total cement production during April-September 2010 reached 81.54 MT ascompared to 77.22 MT over the corresponding period last fiscal. Cementdispatches also witnessed an upsurge from 76.50 MT during April-September2009-10 to 81.10 MT during April-September 2010-11. The Ministry of Road Transport and Highways has planned to

invest US$ 354 billion in road infrastructure by 2012. Housing, infrastructure projectsand the nascent trend of concrete roads would continue to accelerate theconsumption of cement. Cement and gypsum products have received cumulativeforeign direct investment (FDI) of US$ 1,971.79 million between April 2000 andSeptember 2010 further highlighting governments intention of liberalization. Thetotal utilization of cement in a year is used as an indicator of economic growth.

An FDI of 100 per cent is permitted in the cement industry to make it competitive inthe international market. The industry however seeks slight boost from thegovernment in terms of reduction in VAT. Steel which is another important inputcomponent of construction attracts 4 % VAT, while for cement it is as high as 12.5%The cement industry has also requested the government to abolish import duty oncoal, pet coke, gypsum and other fuels.

ACC CEMENT: ACC Limited is the largest producer of cement in India. In 1936 tencement companies belonging to Tatas, Khataus, Killick Nixon and F E Dinshaw groups

were merged to form a single entity, The Associated Cement Companies. Its name was later changed to ACC LimitedThe management control of the company was taken over by Swiss cement major Holcim in 2004. The company is theonly cement company to getSuperbrandstatus in India. It is spread throughout the country with 16 modern cemenfactories and more than 40 Ready mix concrete plants. It has a large countrywide distribution network of over 9,000

dealers. The company is the largest user of limestone, used as a manufacturing input and the biggest customers ofthe domestic coal industry and Indian Railways. ACC has started delivering cement in bulk tankers a welcomechange from the conventional cement bag. It even surpasses BIS Specifications on compressive strength levels whichspeaks volumes about the quality of its cement. The company has started a Greenfield project by setting up a cementmanufacturing plant in the scenic Kudithini village of the iron-rich Bellarydistrict of Karnataka.

AMBUJA CEMENT: Ambuja is the second largest cement company in Indiawith an annual plant capacity of 16 million tonnes including Ambuja CementEastern Ltd and revenue in excess of Rs.3298 crores. Ambuja Cement exportsalmost 17% of its production and remains Indias highest exporter of cement.Ambuja set up its first plant in 1986 in less than 2 years when the acceptedtime period for installing a plant was 3 years. Ambuja installed its second plantin a mere 13 months, the quickest time for setting up a one million tonne

cement plant. It is the first company in India to introduce bulk cementmovement by sea. A dedicated port at the Gujarat plants, capable of berthing40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka,and seven special bulk cement vessels facilitate its transportation through thesea route.

Ambuja holds the credit to brand cement. Cement was considered acommodity, sold largely on price. Ambuja created a brand out of cement andcommand a premium in the market. It was also the first to introduce a special cell, providing technical services toconsumers and masons. The pollution levels at all its cement plants are even lower than the rigorous Swiss standardsof 100 mg/NM 3. At its Gujarat plants, Ambuja has introduced scraping of the mine surface as a move towards saferenvironment practices thus ensuring that all the mining is totally blast free. Ambuja has been conferred NationalAward for Outstanding Pollution Control and The Eco-Gold Star award by Tata Energy Research Institute (TERI).

CA Newsletter Mar18-Mar24

Documents

Transcript of CA Newsletter Mar18-Mar24