Vinyl Chemicals to consider dividend on May 19, 2014

Vinyl Chemicals (India) Ltd has informed that a meeting of the Board of Directors of the Company will be held on May 19, 2014, to consider the Audited Financial Results for the year ended March 31, 2014 and to recommend dividend, if any, on the equity shares of the Company.

Vinyl Chemicals (India) Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 19, 2014, inter alia, to consider the Audited Financial Results for the year ended March 31, 2014 and to recommend dividend , if any, on the equity shares of the Company.Source : BSE

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Carborundum Universal recommends final dividend

Carborundum Universal at its meeting held on April 30, 2014, has recommended a final dividend of 50 paise per equity share (on a face value of Re 1) for the year.

Carborundum Universal Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2014, have recommended a final dividend of Re. 0.50 (Paise Fifty only) per equity share (on a face value of Re. 1/-) for the year. It may be recalled that an Interim Dividend at Re. 0.75 per equity share was declared by the Board at its meeting held on January 31, 2014 and paid in February 2014. With this recommendation, the total dividend for the year ended March 31, 2014 aggregates to Rs. 1.25 (One Rupee twenty five paise only).The dividend warrants, upon approval of the final dividend by the shareholders at the 60th annual general meeting, will be posted on August 05, 2014. In case of shareholders opting for ECS/NECS, the dividend would be credited to their accounts on August 05, 2014.Source : BSE

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Poly Medicure to consider final dividend

Poly Medicure has informed that a meeting of the Board of Directors of the Company will be held on May 15, 2014, to consider the Audited Annual Financial Results of the Company for the quarter and year ended on March 31, 2014 and the recommendation of Final Dividend, if any, for the Financial Year 2013-14.

Poly Medicure Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 15, 2014, to consider the following business:1. The Audited Annual Financial Results of the Company for the quarter and year ended on March 31, 2014.2. The recommendation of Final Dividend, if any, for the Financial Year 2013-14.Source : BSE

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CMI's board meeting on May 07, 2014

CMI has informed that a meeting of the Board of Directors of the Company will be held on May 07, 2014, to consider issue of equity shares on preferential basis to Promoter, Promoter group, associates and others and to decide the relevant date for the purpose of preferential issue.

CMI Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 07, 2014, to transact the following business:- To consider issue of equity shares on preferential basis to Promoter, Promoter group, associates and others and to decide the relevant date for the purpose of preferential issue.Source : BSE

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Book profits in SKS Microfinance: SP Tulsian

SP Tulsian of sptulsian.com is of the view that one may book profits in SKS Microfinance.

SP Tulsian of sptulsian.com told CNBC-TV18, " SKS Microfinance Q4 numbers have been good; consistently they have been showing improvement every quarter. But if I take a call for Q4 the EPS was Rs 2.50. If I take FY15 estimation I don't think that EPS is likely to exceed Rs 13-14 and may be share is ruling at a P/E multiple of 20. Honestly, I see more of a momentum play may be because of the strong hands and FII holding is quite high at 35-36 percent."

He further added, "One may start for the profit booking. I don't think that the concentrated holding is really desired and advisable in this market."

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Tata Chemicals: Updates on scheme of amalgamation

The Hon�ble High Court at Judicature at Bombay has vide its order dated March 7, 2014 sanctioned the Scheme of Amalgamation of Homefield International Pvt. Ltd., (Mauritius) with Tata Chemicals. The Scheme has become effective from April 29, 2014.

Tata Chemicals Ltd has informed BSE regarding "Scheme of Amalgamation of Homefield International Pvt. Ltd., (Mauritius) with the Company". The Hon�ble High Court at Judicature at Bombay has vide its order dated March 7, 2014 sanctioned the Scheme of Amalgamation of Homefield International Pvt. Ltd., (Mauritius) with Tata Chemicals. The Scheme has become effective from April 29, 2014.Source : BSE

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India's taxi king transforms transport landscape

The rickety black-and-yellow taxis and auto rickshaws are long-standing icons of India`s chaotic streets - but Neeraj Gupta, managing director of the country`s largest radio cab service, Meru Cabs, wants to change that.

Launched in the financial capital of Mumbai in 2007 with just 45 taxis, Meru Cabs has grown exponentially in terms of fleet size and geographical presence, boasting a fleet size of around 7,000 taxis across eight cities today.

And India`s taxi king isn`t stopping there.

"We now want to expand and have our presence across as many cities as possible in the country. In this financial year, we want to go to another 4-6 cities," Gupta said in an interview with CNBC. "In fact, we have hired a person to evaluate whether we can go into some international markets."

Gupta, a first generation entrepreneur, came up with the idea to run a fleet of modern, air conditioned cabs equipped with GPS - previously a rarity in India - as his earlier venture - a staff transportation business - started to stagnate.

In 2006, the government of Maharashtra invited tenders for 10,000 radio cabs, competing with traditional black-and-yellow taxis in Mumbai.

"We thought it was a good opportunity, and we should apply for this license. We bid for that and got it," Gupta said.

Meru was offered a license to operate taxis in the city, with the condition that existing black and yellow taxi drivers were absorbed.

Since then, Gupta has expanded the company beyond just running a taxi fleet. Meru has established a training academy where new drivers are put through an intensive program, learning about customer service, hygiene and safe driving habits.

What`s at the nerve center of the business, however, is its call center where some 400 staff work across three shifts, executing 25,000 bookings daily.

"We do a lot of analytics, checking and auditing the trends that we see or the patterns of the customers. So based on our prior experiences for the previous days, weeks and months, we`re able to predict what the number of cabs that will be available for the next few weeks," he said.

And as Meru has evolved, it has also added a mobile app, which today accounts for 35 to 40 percent of their overall bookings.

Gupta is an embodiment of the entrepreneurial spirit prevalent in India - where around half the workforce is self-employed.

"I think Indians inherently, genetically, have that kind of entrepreneurial mindset, they want to do things on their own," he said.

"They are ready to go the extra mile, and put in the extra effort to make their dreams come true. And now, the opportunities have [grown] because companies [are] prepared to back you with VC [venture capital] funding and private equity funding," he said.

Copyright 2011 cnbc.com

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Prefer Hindalco over Sesa Sterlite: SP Tulsian

SP Tulsian of sptulsian.com is of the view that one may prefer Hindalco Industries over Sesa Sterlite.

SP Tulsian of sptulsian.com told CNBC-TV18, "If you see the business model of Sesa Sterlite , it is deriving its strength from Cairn India and Hindustan Zinc. If you take their standalone business operation that is iron ore, maybe copper or maybe the other aluminum kind of business they have, I don't think that they have much of the income coming in from that."

"If you see the EBIT of the company, 90 percent is derived from the Hindustan Zinc  and Cairn India . So I don't think that one can take a very positive call on the stock beyond a level, which is about Rs 200 or so. That is in fact the reason if you take this 56-57 percent holding in Cairn India and 64-65 percent holding in Hindustan Zinc, the valuation of both comes to about Rs 72,000 crore while the marketcap of Sesa Sterlite itself is at Rs 57,000 crore. So it is ruling at a discount because of high debt of Rs 72,000-73,000 crore in the company on a consolidated basis," he added.

"I am not very comfortable with this stock. So I will advise that one should look to move to  Hindalco which seems to be a better non-ferrous play. So I will not advice to remain invested in Sesa Sterlite."

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SEBI's New Clause 49!

Published on Mon, Apr 28,2014 | 16:18, Updated at Mon, Apr 28 at 16:29Source : CNBC-TV18 

Our top story this week- India's new Clause 49! It is that Clause in the Listing Agreement that first ushered in corporate governance norms in India. That was in 2000. This year we have a new Clause 49 that not only aligns SEBI's corporate governance norms with those laid out in the Companies Act, 2013 – but in some cases even goes beyond. Payaswini Upadhyay reports on the top 3 changes that will impact listed companies in India

Excessive promoter remuneration, higher royalties to foreign parent companies, loans to wholly owned subsidiaries at low interest rates, intra-group transfers- time and again, minority shareholders have been short changed by such related party transactions by companies and their managements. 

The Companies Act, 2013 has sought to address this by mandating that all related party transactions need audit committee approval. SEBI's new Clause 49 adds prior approval.

NEW CLAUSE 49!

Related Party Transactions

Companies Act, 2013

- Audit Committee approval for all RPTs

SEBI - Prior approval by Audit Committee for all RPTs

Amal Ganguli
Independent Director

"In the case of SEBI guidelines, now, even if the transaction is in the ordinary course of business and at arms length – that still has to be pre-approved by the Audit Committee; of course if it is material. But the pre-approval is going to cause enormous difficulties because in a lot of cases, subsidiaries are spread all over the world. I am myself on the Board of a company which has 57 or so subsidiaries spread all over the world. Pre-approving related party transactions between the parent and those subsidiaries – whether they are at arms length or not- I can't imagine how it will be done."

The Companies Act requires all RPTs not in ordinary course of business and not at arms length to be approved via special resolution. SEBI says all material RPTS need approval via special resolution.

Companies Act defines related party transactions mostly in connection to directors, relatives and KMP. SEBI extends the definition to include those in control or joint control or having significant influence.

NEW CLAUSE 49!

Related Party Transactions

Companies Act, 2013

-          Special resolution approval for all RPTs not in ordinary course of business & not at arms length

-          Applicable to companies with paid up capital of more than Rs 10cr + prescribes transactional thresholds

-          Defined in connection to directors, relatives, KMP

SEBI

-          All material RPT's need special resolution approval

-          Material: Transaction exceeding 5% of annual turnover or 25% of networth

-          Extended to those in control/ joint control/having significant influence

Umakanth Varottil
Professor, National University of Singapore

"The concept of control, we know, has been subject to quite a lot of issues. If you were to take a scenario where an entity has a small shareholding in another company and if they have Board rights, negative veto rights so on and so forth, those contractual right may also give rise to an element of control. What this does is, it gives room for a lot of interpretation, discretion to be exercised by SEBI which may then be taken to Appellate authorities etc. So I see this giving rise to a lot of interpretational issues and disputes than the Companies Act does which is both clear and streamlined

SEBI's related party definition extends to entities related to a company if they are members of the same group; if one entity is an associate or joint venture of the other; and if both entities are joint ventures of the same third party.

NEW CLAUSE 49!

Related Party
Companies Act definition

+

Person who has control/joint/control/significant influence
Members of the same group
Associate or joint venture
Joint ventures of the same third party

Shardul Shroff
Managing Partner, Amarchand Mangaldas
"In a two party joint venture- if it's a contract between a company and say one of the shareholders, you can identify but what if it is a party contract between two joint ventures- who is the counter party, whose vote has to be taken on one side and whose vote has to be taken on the other side. You can never be in a situation where no vote is to be taken  So when there is a majority-minority kind of situation- a promoter and a minority- the concept of who is the party related is very clear but if the only two shareholders are counter parties, then who will vote? Take a hypothetical example- one partner is GE, other partner is SBI and let's assume there are two JVs in such a situation- in one, GE has the majority and in the other, SBI has a majority- now if there is a contract between two JVs, and in one, one of them is a related party and in the other, majority is the counter party- what vote will take place?"

Listed companies would feel the pinch in executing related party transactions not just on account of a wider definition but also because of an element of retrospectivity that Clause 49 brings in. It says that all existing material related party transactions that are likely to continue beyond March 31^st 2015 will need shareholder approval by a special resolution.

Shardul Shroff
Managing Partner, Amarchand Mangaldas
"If a contract has been entered into and it's executed partially, it would be an extremely strange principle of law that subsequent to the contract being performed, you are asking for a minority vote and if the minority doesn't approve it with a requisite majority, you can cause cancelation or even damages being raised by the counter party. So that could become a very serious problem in terms of contract law."  

SEBI's Clause 49 has also introduced new requirements for material un-listed subsidiaries – material being defined as that in which the parent's investment exceeds 20% of its net worth or that which contributes 20% to the parent's consolidated income.

The new provisions include- at least 1 Independent Director of holding company should be present on the subsidiary's Board. And the audit committee of listed holding company to review financial statements & investments of the subsidiary

NEW CLAUSE 49!

Material Subsidiary

-          Defined as one in which parent's investment exceeds 20% of its net worth/contributes 20% to parent's consolidated income

-          One ID of holding company to be on subsidiary's Board

-          Parent company's Audit Committee to oversee financial statements & investments

Amal Ganguli
Independent Director
"Overseeing the business will mean the parent company getting involved to a much greater extent and actually passing judgment on the business decisions that are taken in those subsidiaries and that fits in with the law that says each company has its own Board and its own shareholders and its run as a separate entity If, for example, a subsidiary says to the parent we want to go in a particular line of business or a contract and we think it's a good business risk, there are good prospects of profit but we need to borrow a large amount of money- is it possible for parent Board to evaluate and say that you can't go ahead with it. Now that can give rise to all kinds of conflict immediately."

The Companies Act says the sale of 20% or more of an undertaking of a specified size, must be approved via a special resolution. SEBI extends that to material subsidiaries as well – saying a sale of shares that results in loss of control of the subsidiary or a sale of 20% and more of the assets of the subsidiary needs special resolution approval.

NEW CLAUSE 49!

Material Subsidiary

Companies Act, 2013

- Sale of 20% or more of undertaking's asset needs special resolution approval

SEBI

- Special resolution approval requirement applicable to material subsidiary as well

- Applicable if it results in loss of control/sale of 20% and more of subsidiary's assets

In 2012, executives were paid 85 times compared to their average employee; reveals a study by proxy advisory firm- IIAS. In promoter-run Sensex companies, the median ratio was 190 times. The Companies Act, 2013 requires companies to disclose remuneration of directors and key managerial personnel. It also requires listed companies to disclose the ratio of the remuneration of each director to the median employees'  remuneration. Clause 49 takes this disclosure requirement one step further. Listed companies must disclose all elements of remuneration package of individual directors namely, salary, benefits, bonues, stock option details, pension, service contracts, notice period, severance fees etc.

Umakanth Varottil
Professor, National University of Singapore
"In other countries where this has been implemented, it has also resulted in several unintended consequences. There have been studies in the United States that suggest that more disclosures around Executive compensation, it drives the market for compensation further up which was not what governance specialists had thought of when this was suggested. In other markets, there have been issues as to whether this is competitive information that may be sensitive from a human resources hiring perspective. So putting this information out in the market may lead to several unintended consequences."

These were the Top 3 impact areas where SEBI has raised the bar for the listed company universe. There is one more important change that most people come to terms with but it still requires a special mention and that has to do with the tenure of independent directors – the Companies Act gives independent directors 2 terms of 5 years each. SEBI's Clause 49 says an Independent Director who has already served on a company's board for 5 years can serve only one more term of 5 years. It also places restriction on the number of Boards they can sit on and requires them to offer reasons for their resignation. There are stricter conditions for audit committee's too- Companies Act requires majority of the members to be independent; Clause 49 increases it to 2/3. To implement this new avatar of Clause 49, corportate India, you have time till October 1^st.

In Mumbai, Payaswini Upadhyay

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Companies Act: Incorporation, Management KMP Remuneration

Published on Mon, Apr 28,2014 | 16:18, Updated at Mon, Apr 28 at 16:23Source : CNBC-TV18 |   Watch Video :

Last week, we gave you an overview of how life will change; thanks to India's new company law. This week onwards, we kick off our Chapter-wise analysis.

Up for discussion today -

Ch II: Incorporation of Companies & Matters Incidental… Ch VII: Management & Administration Ch XIII: Appointment and Remuneration of Managerial Personnel

CNBC-TV18's Menaka Doshi speaks to M&M's Narayan Shankar, Great Eastern Shipping's Jayesh Trivedi and Khaitan's Sharad Abhyankar.

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Buy Zee Entertainment: Pritesh Mehta

According to Pritesh Mehta, senior technical analyst at IIFL, one may buy Zee Entertainment with a target of Rs 285.

Pritesh Mehta, senior technical analyst at IIFL told CNBC-TV18, " Zee Entertainment is an ideal bottoming out stock. Just a few months back it had a sharp rally from Rs 200 levels to Rs 300. Thereafter it retraced 50 percent of this upmove and then found support and moved higher gradually."

He furter added, "In the last few days it has come down a bit but it has given signs of bottoming out, reversing out because it is attempting to breakout from a falling wedge pattern which is bullish in nature. So, buy the stock for a target of Rs 285."

At 15:15 hrs Zee Entertainment Enterprises was quoting at Rs 269.65, up Rs 1.30, or 0.48 percent. It has touched an intraday high of Rs 272.85 and an intraday low of Rs 267.35.

The share touched its 52-week high Rs 300.55 and 52-week low Rs 248 on 13 January, 2014 and 28 August, 2013, respectively. Currently, it is trading 10.28 percent below its 52-week high and 8.73 percent above its 52-week low. Market capitalisation stands at Rs 27,597.91 crore.

Disclosure: Analyst may have recommended the stock ideas to his clients but has no personal holdings.

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Holcim + Lafarge = India Tax Bill?

Published on Mon, Apr 28,2014 | 16:18, Updated at Mon, Apr 28 at 16:22Source : CNBC-TV18 |   Watch Video :

This month two global cement giants decided to combine to create the world's largest cement company with a total revenue of USD 44 billion and 470 million tonnes in capacity.

HOLCIM + LAFARGE = INDIA TAX BILL?

April 2014 Announcement

Swiss cement company Holcim & French cement company Lafarge to merge

Combined Revenue: $44bn

Combined Capacity: 470 mtpa

Holcim and Lafarge describe it as a merger of equals with each company having seven directors on the combined board. A transaction structured as a public exchange offer initiated by Holcim with an exchange ratio of one Holcim share for one Lafarge share - the offer would be subject to Holcim holding at least two third of the share capital and voting rights of Lafarge on a fully diluted basis.

HOLCIM + LAFARGE = INDIA TAX BILL?

April 2014 Announcement

 

'Merger of equals'

Each company to have 7 directors on combined board

Exchange Ratio: 1 Holcim share for 1 Lafarge share

LafargeHolcim would be listed in Zurich and Euronext Paris and would continue to be domiciled in Switzerland with central corporate functions in France and Switzerland.

HOLCIM + LAFARGE = INDIA TAX BILL?

April 2014 Announcement

 

LafargeHolcim to be listed in Zurich & Paris

Domiciled in Switzerland

Central corporate functions in France & Switzerland

How will the global mega-merger impact India? 

Well in India, Holcim is the controlling shareholder in Ambuja cements and ACC – both listed. That's a combined annual capacity of over 58 million tonnes. Lafarge India is an unlisted subsidiary of Lafarge with a 10.5 million tonne capacity. The 3 together will have 69 million tonnes of capacity making it India's largest cement group.

HOLCIM + LAFARGE = INDIA TAX BILL?

India Impact?

 

Holcim: 206 mtpa Ambuja Cements: 28 mtpa  } 15-16% of Holcim Revenue                                   

                                                                          } 13-14% of Holcim Operating Profit

ACC: 30 mtpa  } Approx 30% of Holcim Net profit                                                                       

 

HOLCIM + LAFARGE = INDIA TAX BILL?

India Impact?

 

Lafarge                221 mtpa

Lafarge India*     10.5 mtpa

 

*Unlisted so no disclosure of Revenue and Profits

That is likely to raise competition concerns and the global merger may result in some asset sales in India. That is one impact that's already been much discussed. But today we are going to discuss the other – undiscussed impact – taxation! Could this global merger be facing an Indian tax bill? To answer that question CNBC-TV18's Menaka Doshi spoke to ELP's Rohan Shah & EY's Amrish Shah.

HOLCIM + LAFARGE = INDIA TAX BILL?

India Impact?

 

Ambuja Cements             28 mtpa

ACC                                        30 mtpa

Lafarge India*                   10.5 mtpa

 

COMPETITION CONCERNS

MAY LEAD TO ASSET SALES IN INDIA

Doshi: Can a global merger at all attract tax in India by virtue of both companies who are merging having assets here in India?

Rohan: The factor of just having assets in India will not trigger a tax event but you ultimately have to see it in the context of the threshold of what is substantial. And at this point in time we have no definition of what is substantial and that is what is causing the worry. If you looked at it in the context of this transaction - assuming this was Lafarge merging into Holcim, given the nature of what Lafarge has in India as assets, it seems quite innocuous. It doesn't seem to meet this threshold of being substantial. The worry that people have is that we just don't have a definition. And if we don't have a definition, their worries stems from the fact that you hear of anecdotes where in case of one business, because the headcount or the number of people employed is largest in India- even though the income attributable is low, even though the asset base is low- we will see it as substantial. So the worry right now is coming from some irrational interpretation of substantial.

 

HOLCIM + LAFARGE = INDIA TAX BILL?

Income Tax Act, 1961

 

Sec 9. Income deemed to accrue or arise in India

Explanation 5: …an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or indirectly, its value substantially from the assets located in India

Doshi: There could be two-three tax opportunities here. One is the global merger in itself. The second is if at all Lafarge in India is merged into Ambuja India in a sense to try and create a unified entity, then that merger might attract some tax scrutiny and that is a fairly standard process in India so there is not much to talk about on that count.

Third is if there are any asset sales in India on competition concerns those sales might have some capital gains involved in them. The last two instances that I have spoken off are well tested situations in India so we don't need to spend time talking about them.

This parent merger that we are talking about, Rohan says it is unlikely to attract any tax scrutiny in India, do you agree with that?

HOLCIM + LAFARGE = INDIA TAX BILL?

Potential Tax Events

 

Global merger of Holcim & Lafarge?

Subsequent combination of Indian assets?

Sale of Indian assets?

Amrish: The first thing that one needs to see is what is the subject matter of transfer as far as India is concerned. And if you look at this transaction, as I have understood it, Lafarge is going to merge into Holcim- so I don't think we need to look at the Holcim assets because neither they are not going to be subject matter of transfer nor the Holcim shares are getting transferred by the Holcim shareholders. So what is getting transferred is Lafarge shares which are held by the Lafarge shareholders at a global level. So that is the first thing that one needs to look at.

Then just stepping back before going to substantial, we need to look at whether there is a treaty protection available to those shareholders. Since Lafarge is in France, it is listed there and if the shareholders are from France then potentially there is a treaty benefit that is available on an indirect transfer and we have this case of Sanofi which as of now is in favor of the taxpayer and obviously pending before the Supreme Court. That is the second point that one needs to get into.

Let us look at one more thing- may be because it is listed, some shareholders are not in the treaty jurisdiction or protected jurisdiction, then we need to go to what is substantial. And there, we will have to look at what is the Lafarge's value in India versus Lafarge value outside India. And substantial again, while it is not defined, there has been a pendulum swing as I see it. It started with 50 percent in the original DTC; when the law came, it was ambiguous and which is a case today also. It moved to 50 percent again in the Shome Committee recommendations but when the last DTC came it was 20 percent. So one doesn't know where this will end and therefore since the law today is not talking of any of these percentages therefore again there is a lot of ambiguity. But I would think if it is less than 20 percent then by all counts it should not be substantial is how I look at it. If you look at different provisions in the Act, there are lot of provisions where 20 percent and substantial has been put together.

Doshi: Don't foreign mergers get any protection under the Income Tax Act?

Amrish: If this merger is going to be the way we understand mergers in India whereby the merging entity needs to go out of existence, so that is the other element, which one will have to look in this transaction. Is it that the Lafarge entity is going to go out of existence and therefore the shares and if it is a direct holding by Lafarge into India and I don't know their holding pattern but if it is a direct holding then there is a direct clear provision in the Act that the transfer of shares of an Indian company is not subject to tax provided two conditions are met. One is that 75 percent of the Lafarge shareholders become shareholders of Holcim, which will be the case as we know the deal and what has come in the public domain.Second is that it is not subject to taxation in the host country.

Rohan: You really have to see the home jurisdiction of the amalgamating company. So in which case you would have a sort of see what happens in France but the particular provision which is 47(vi)(a) says that the two conditions are cumulative and ultimately therefore the Indian tax position in a way is actually dependent upon the French taxation.

HOLCIM + LAFARGE = INDIA TAX BILL?

Income Tax Act, 1961

 

Sec 47. Transactions not regarded as transfer (via) any transfer, in a scheme of amalgamation, of a capital asset being a share or shares held in an Indian company, by the amalgamating foreign company to the amalgamated foreign company, if— (a) at least twenty-five per cent of the shareholders of the amalgamating foreign company continue to remain shareholders of the amalgamated foreign company, and (b) such transfer does not attract tax on capital gains in the country, in which the amalgamating company is incorporated

Doshi: So you are the French expert because you did the Sanofi deal and won it at least at the High Court level. Would a merger of this nature be exempt from tax in France?

Rohan: I am not the jurisdictional experts but we have spoken to firms from France, they have been seeking opinions and the view there is that it will not attract capital gains in France in the context of how they are proposing this merger.

Doshi: So we are now only down to the substantial test?

Amrish: Yes, primarily.

Rohan: And if you do satisfy everything under section 47(vi)(a), then the substantiality test in that manner is less relevant because your first issue is would I come in the fold of Section 9. If I did, I still would have the 47(vi)(a) to fall back upon. So even if the substantiality parameter- for some reason, somebody interprets it to say it applies- then this is your fallback position.

Amrish: I think your indirect transfer will still exist. The reason is that the 47(vi)(a) exemption is to the merging company, it is not to the shareholders of the merging company.

Doshi: Let us examine what does substantial mean? You have put 50 percent, 20 percent, now Lafarge's capacity in India is 10.5 million tonnes per annum- that is the only number we have because it is unlisted and we don't have a revenue figure and that is a fraction of Lafarge's global capacity which is 221 million tonnes per annum. So you have got 10 million tonnes and 221 million tonnes. Just by this figure, you know that Lafarge India does not contribute substantially to Lafarge's global business in anyway; it cannot if the capacity is just a fraction. So would that mean that therefore Lafarge has no reason to worry?

Rohan: I started out by saying that I don't think they will meet and come within the substantial parameter but the worry that everybody is carrying is that this is just so open-ended. Even if you see our definition what we are looking at in terms of the DTC, one threshold is 20 percent but we also have a right to prescribe a certain amount, which we can then say as Government of India we consider to be substantial. So even in that 20 percent is not the only parameter.

Doshi: This is 5 percent of their global capacity?

Rohan: And the question to ask is why are people still worried? One, because this is undefined. Second, in terms of the approach taken by the tax department in the past, they have brought up issues like headcount, turnover and different streams of income.

Doshi: There is 0.1 percent chance that in fact there is a tax claim that can be raised on this. Who would have to pay that tax?

Amrish: If you go back to what has happened in the famous indirect transfer case of Vodafone, they will want to go to Holcim because it is very difficult to catch a Lafarge shareholder.

Rohan: Incidentally they just have the larger footprint in India also.

Doshi: On on what would they end up paying the tax? How would the tax department figure out what portion of this deal must be attributed to India and therefore how it must be taxed? That is the other complex leg to this, isn't it?

Rohan: And taken to its culmination where you cannot administer the mechanics of a demand or a tax, the tax should fail but I don't think that is going to stop our guys if they think there is a tax.

Amrish: The issue is not going to be how you are going to administer. The issue for them is going to be how you are going to recover and that is how they will look at it.

Doshi: That is precisely the reason why I thought this might be a discussion worth doing on the show; not because the taxability of this transaction is a given but because it is not a given. There is 99.9 percent chance of there being no taxability and yet thanks to our track record we are unable to do away with the fear and doubt that there could be a tax claim.

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Watch: Ads that jumped on to the election bandwagon

Now, there are many brands that have jumped on to the election bandwagon. While some are urging consumers to vote, some are talking elections without even referring to them. Here are some that caught our eye.

Now, there are many brands that have jumped on to the election bandwagon. While some are urging consumers to vote, some are talking elections without even referring to them. Here are some that caught our eye.

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Vikram Sakhuja’s ambition for Maxus

Media agency Maxus continues to dominate headlines. According to the latest RECMA reports released earlier this month, the agency retained its position as India's most dominant media agency, and has been named the world's fastest growing media agency network.

Media agency Maxus continues to dominate headlines. According to the latest RECMA reports released earlier this month, the agency retained its position as India's most dominant media agency, and has been named the world's fastest growing media agency network. It's global CEO, Vikram Sakhuja speaks about how he plans to take Maxus to the top five globally.

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There's change at Leo Burnett India

The big news from Indian advertising this week was the change of creative guard at Leo Burnett India. Former ECD of BBDO India, Raj Deepak Das will now take over from KV Sridhar as the new Chief Creative officer of the agency. This, nearly six months after the agency got a new CEO in Saurabh Verma.

The big news from Indian advertising this week was the change of creative guard at Leo Burnett India. Former ECD of BBDO India, Raj Deepak Das will now take over from KV Sridhar as the new Chief Creative officer of the agency. This, nearly six months after the agency got a new CEO in Saurabh Verma. Storyboard Editor Anant Rangaswami spoke to Verma on the implications of the decision to bring in new blood.

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Rain likely in North and Northeast; rest of India swelters under intense heat

The Western Disturbance brought light rain in Jammu & Kashmir where Gulmarg recorded 9.6 mm of rain. Srinagar, Batote and Pahalgam also received some rain. As the system is moving away, rain will decrease in the state. In the next 24 hours, Himachal Pradesh, Uttarakhand, Haryana and Delhi might receive thunderstorms with squally winds accompanied by light rain.

The associated cyclonic circulation over west Rajasthan is also expected to moving east-northeastwards and bring some relief from the hot and dry conditions in the northwest plains. According to the latest weather update by Skymet Meteorology Division in India, Northeast India will heave a sigh of relief as rain is expected here from tomorrow.

Weather in East India

In East India, temperatures have been on the rise. Heat wave conditions are being experienced in some pockets of south West Bengal like Purulia and Burdwan. Kolkata is experiencing extreme heat wave conditions and recorded 41.2°C as maximum yesterday, which is 6°C above normal average.

Weather in Central India

In Maharashtra, Nagpur touched 44°C today afternoon. Several other places like Wardha, Malegaon and Bhira are above 43°C and will maintain levels in the next 24 hours.

Weather in South India

The discontinuity line across north Odisha, south Chhattisgarh, coastal Andhra Pradesh and Telangana region could witness some thunderstorms in next 24 hours. South Kerala and Karnataka could also receive some isolated thundery activity. As rain will not be significant and commence only in the later part of the day, temperatures will not be affected much.

By: Skymetweather.com

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YT: Uber betting big on India

Uber launched by Silicon Valley Maverick Travis Kalanick. Uber's application has become quite popular in the high-end radio cab market. This week Uber went live in Mumbai and did so with style offering free rides to senior citizens to help them caste their votes, just as they did in Delhi, Mumbai, Bangalore, Chennai and Hyderabad.

Uber launched by Silicon Valley Maverick Travis Kalanick. Uber's application has become quite popular in the high-end radio cab market. This week Uber went live in Mumbai and did so with style offering free rides to senior citizens to help them caste their votes, just as they did in Delhi, Mumbai, Bangalore, Chennai and Hyderabad.

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YT: Elections 2014 catches the digital fever

The major highlight of this year's election is the use of social media by political parties. As we prepare to elect a new government, we are seeing a rise in political parties using tech tools, providing online information to voters and politicians reaching out to a growing middle-class using the internet.

The major highlight of this year's election, apart from being a sharply personality-driven battle, is the use of social media by political parties. As we prepare to elect a new government, we are seeing a rise in political parties using tech tools, providing online information to voters and politicians reaching out to a growing middle-class using the internet.

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YT: Elections 2014, the Know Your Vote way!

Know Your Vote focuses on educating the youth to make informed decisions, spread political awareness and demand accountability from the government.

Know Your Vote launched by Dhruv Sarin in 2010, focuses on educating the youth to make informed decisions, spread political awareness and demand accountability from the government. Having reached at over one lakh individuals through social media platforms and campaigns, this largely self funded venture has already won awards from its unique business model and received a seed funding grant from the Ashoka Foundation.  

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Durex India makes a bold statement

This week we are putting up the latest commercial from Durex India on Noticeboard. Finally, there's an ad that takes a liberal view of sex - casual and unapologetic. The actor Ranveer Singh starrer video has already gone viral notching up over 2 lakh 50,000 views within 2 days of release. Take a look.

This week we are putting up the latest commercial from Durex India on Noticeboard. Finally, there's an ad that takes a liberal view of sex - casual and unapologetic. The actor Ranveer Singh starrer video has already gone viral notching up over 2 lakh 50,000 views within 2 days of release. Take a look.

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Looking to invest in MFs? Pankaj Mathpal guides

Pankaj Mathpal of Optima Money Manager answers all the personal finance queries in an interview to CNBC-TV18's Sumaira Abidi and Nigel D'Souza.

Pankaj Mathpal of Optima Money Manager answers all the personal finance queries in an interview to CNBC-TV18's Sumaira Abidi and Nigel D'Souza.

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India's growth prospects dim regardless of election outcome

Prospects for a strong economic rebound in India are dim as industry remains weak, and although a business-friendly opposition party looks likely to form a new government, its ability to pass sweeping reforms is in doubt, a Reuters poll showed.

An anticipated victory for the Bharatiya Janata Party's (BJP) at the conclusion next month of an ongoing election in the world's largest democracy has pushed India's stock market to a record high.

Also read: Asian economic growth to languish this year, China a worry

But many worry that its power to drive change will be muted if it has to form a coalition with other parties, which in the past have held policy hostage to local agendas.

The latest Reuters poll of over 20 analysts taken this week showed Asia's third-largest economy likely grew 4.7 percent in the fiscal year that ended this March, with growth seen picking up to 5.5 percent in the current fiscal year.

Growth slumped to a decade-low of 4.5 percent in 2012/13 - less than half the almost double-digit rates in 2010.

Anubhuti Sahay, senior economist at Standard Chartered Bank, said that against that backdrop, and with chances of even higher inflation, a strong government with the ability to legislate change is needed to put the economy back on track.

"If we get into a situation where again the government, because of coalition politics, is not able to implement good policies, that is the biggest risk. We have seen such situations since 2010," she added.

India's economic gloom deepened in the first quarter of this year. Industrial output shrank and exports fell, underscoring the enormous challenges awaiting whatever new government takes over in May.

The current government has been heavily criticized for not implementing economic reforms and for being unable to control persistently high inflation -- both leading to reduced foreign investment and low consumer demand.

The Reserve Bank of India (RBI), which recently shifted its focus to retail price inflation, aims to bring that down from 8.31 percent at present to 6 percent by January 2016.

But the poll shows inflation only coming down to 7.5 percent by then. That would leave a 1.5 percentage point gap to close.

The RBI is expected to keep its key repo rate steady for another year before a modest cut in the second half of 2015, the poll also showed.

A weak economic outlook for China and the euro zone, India's two biggest trading partners, does not help the outlook for exports, either.

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Axis Bank Q4 net up 19% to Rs 1842 cr, approves stock split

Moneycontrol Bureau

Private sector lender  Axis Bank beat street expectations with the fourth quarter (January-March) net profit rising 18.5 percent year-on-year to Rs 1,842 crore on higher other income and net interest income.

According to CNBC-TV18 poll estimates, analysts had estimated net profit of Rs 1,676 crore and net interest income of Rs 3,096 crore for the quarter.

Net interest income during the quarter jumped 18.8 percent to Rs 3,165 crore while non-interest income (Other income includes fee income, commission, gains from securities' transactions etc) climbed 10.3 percent to Rs 2,213 crore year-on-year.

Net interest margin of the bank expanded sequentially to 3.89 percent from 3.71 percent during January-March quarter.

Asset quality improved sequentially. Gross non-performing assets (NPA) declined marginally (up 16 basis points year-on-year) to 1.22 percent while net NPA stood at 0.40 percent as against 0.42 percent quarter-on-quarter and 0.32 percent year-on-year.

In absolute term, gross NPA stood at Rs 3,146.4 crore in March quarter, up 4.6 percent compared to previous quarter and 31.5 percent compared to same quarter last year. Net NPA rose 2 percent Q-o-Q  (45.5 percent on yearly basis) to Rs 1,024.6 crore in the quarter gone by.

Provisions and contingencies were Rs 505.2 crore in the quarter ended March 2014 as against Rs 202.5 crore in previous quarter and Rs 595.4 crore in corresponding quarter of last fiscal.

Capital adequacy ratio (as per Basel-III norms) improved to 16.07 percent in fourth quarter from 15.50 percent in third quarter FY14.

The board of directors has declared a dividend of Rs 20 per share and also approved the sub-division of one equity share of the bank having a face value of Rs 10 each into five equity shares of face value Rs 2 each.

Meanwhile, its rival ICICI Bank 's net profit rose 15 percent (missed estimates) to Rs 2,652 crore in the quarter ended March 2014 year-on-year supported by non-interest income , higher retail advances and operating profit but impacted by higher provisions.

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Have political parties found ways to fool EC?

R Jagannathan
Firstpost.com

Have political parties found a way to fool the Election Commission?

There is good reason to think so since many of the Commission's time-tested rules and norms for the conduct of the elections are now set in stone, and smart cookies are now beginning to game the system. This may not actually affect the final outcomes significantly, but everyone – political parties, the media and even voters - has now figured out how to fool the Election Commission. Worse, many of them may suspect that the Commission is a paper tiger, whose bark may be worse that its bite.

The key elements of the Commission's approach are now well understood: the nation always has multi-phase polling; there is a code of conduct that kicks in roughly a month or 35 days ahead of the first day of polling; all voting is done through electronic voting machines (EVMs); campaigning has to end 48 hours before polling date; etc.

But as the ongoing elections showed, the vulnerabilities of the system have been tested and taken advantage of.

The BJP managed to produce its election manifesto on the first date of polling, 7 April. It got free publicity even though campaign rules mandate that once polling starts, there can be no campaigning.

On April 24, even as the sixth phase of polling was on, Narendra Modi made a media event out of his filing of nomination papers in Varanasi. That's an easy way to gain voter traction in the states that went to the polls even without violating the poll code.

In the current general elections, opinion polls have been held after the first phase of polling. NDTV concluded one after polling began. The Election Commission only forbids the publishing of exit polls, but who can monitor whether the survey was done pre-poll or exit?

Parties are managing to make strategic leaks on internal or doctored opinion/exit polls in the early phases of polling – which may have their impact on voting trends in the later phases.

Parties have learnt to inundate an overloaded Election Commission with so many code of conduct violations that effectively most violations cannot be acted upon.

Politicians have also tested the limits of the Commission's tolerance. A mea culpa from Amit Shah was enough to let the Commission pardon his "badla" remark.

Parties have also learnt to intimidate the Election Commission while claiming to respect it. Trinamool chief Mamata Banerjee raised a shindig about the transfer orders issued to some officials in West Bengal, but even while complying, she sent a tough message to the Commission: don't mess with me. So did Samajwadi strongman Azam Kham, who refused to apologise for his communal statements on Kargil, thus forcing the Commission to look unbalanced vis-�-vis Amit Shah. Once parties make a strong issue, the Commission can well feel intimidated by it.

Many voters also get to vote twice, thanks to the gaps in the system. I have been told of one person who voted in his village which had its election in the early phases, and then returned to Mumbai to vote again today. This is possible only because of multi-phase polling, where it is possible to let the black ink-mark fade in two weeks – or even get it removed – and vote twice. Maybe, Sharad Pawar's advice to supporters to vote twice was not a joke after all.

There is no foolproof way of ensuring EVMs are not tampered with. Though no one suspects major hanky-panky as of now, one needs safeguards that can be publicly monitored without compromising the process.

So what are the remedies?

First, multi-phase polling cannot be taken to extremes – like this time. The country should use all its police forces and administrative personnel to ensure that polling is completed in two or maximum three phases. Nine phases is simply too long to wait for a verdict, and for governments to sit in limbo.

Second, no state should have multi-phase polling. One wonders why Uttar Pradesh and Bihar need to have six-phases of polling for districts that are just a bus-ride away. Every state should poll only on one day even if we have three-phase polling for the whole country. If it can be done for Tamil Nadu, Kerala, Karnataka and Gujarat (all completed in one day), one wonders why other states need multi-phase polling, where leaked trends (even doctored information) from one phase can be used to influence the voter in the next phase. Reducing the number of phases will also reduce chances of the same person voting twice – once in his urban place of work, and again in his rural home.

Third, the Commission needs to restrict frivolous complaints regarding the code of conduct and focus instead on attempts to bribe or intimidate voters and extreme hate speech. Amit Shah's "badla" remark, Sonia Gandhi's "khoon ki kheti" or Modi's references to Shehzada are, in my opinion, are all borderline cases. Any close election will invite strong language from politicians, and the Commission should really be concentrating on the big abuses – and not just innuendo and name-calling.

Right now, the Commission gets inundated with all kinds of pointless complaints. In Tamil Nadu, for example, the Commission had received 55,000 complaints on the misuse of public and private properties for putting up election messages and posters. Obviously, this is a serious problem for the owners of these defaced properties, but they have little to do with the conduct of the elections. Can the Commission really act on 55,000 complaints with its kind of skimpy staffing? Defacement of public property should be left to the state administration or the courts to deal with.

Fourth, a more foolproof system of updating and deleting names from electoral rolls needs to be introduced, especially in urban areas, where people change addresses frequently and tend to get enrolled either multiple times, or get deleted because they have moved elsewhere. Some form of digital registration based on PAN numbers, Aadhaar numbers or any unique ID-based system should used to enable voters to update their addresses electronically – with automatic deletions of previous enrolments.

Fifth, at some point EVMs need to be replaced with foolproof digital voting – where votes are registered in polling booths with digital signatures or unique ID numbers. EVMs, once a huge innovation in our democracy, are now an anachronism in the digital age. Votes should now be cast digitally. This will also allow for remote voting – which could improve polling percentages of the urban middle class.

Sixth, every party violates the spirit of the code of conduct by using government money to advertise schemes before polling dates are announced. A simple rule, which bans any government-financed advertising six months before an election, might help. In the run-up to the 5 March announcement of polling dates, the central and state governments spent crores in advertising the parties in power.

The Election Commission usually gets high marks for its successful conduct of fairly peaceful polling in the world's largest and most raucous democracy. With 814 million voters, huge regional and national diversities, difficult terrain, and an aggressive political class that is always testing the limits of tolerance, merely ensuring fair polling is a huge triumph.

But its existing ways of working have become old hat and all parties have now learnt to work their way around it. Time to change the rules.

The writer is editor-in-chief, digital and publishing, Network18 Group

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Is investing in ELSS best option for long term horizon?

Juzer Gabajiwala
Ventura Securities

We always see a surge in investments related to tax-saving during the end of the financial year. In fact the last quarter of the financial year ie Jan-Mar witnesses nearly 50% of the investment and the balance 50% is in the remaining 9 months. We believe that it is best to undertake tax planning in the beginning of the year and not wait till the very end. Investors should stagger their investments from the start of the financial year itself; specifically when it comes to Equity Linked Saving Scheme (ELSS) ie. follow SIP route.

Over the years, many individuals have started investing in ELSS under Section 80C. This is because along with the tax deduction, the investor also enjoys the potential upside of investing in the equity markets. But wherever there is a potential for an upside, there is also the possibility of a downside.

However, quite often ELSS is not looked at as an investment product that should be held for the long run, beyond the 3 years lock-in period which enables a tax break. Investors tend to withdraw their funds after getting the tax break. Although, ELSS is a great way to save taxes, staying invested in equity for just 3 years does not usually deliver the best possible returns. Time and again, studies have shown that to get the best benefits from equity, the longer the investment term, the better the returns and the lower is the possibility of negative returns. Hence it is ideal to look at this product for at least 10-15 years.

To draw an analogy (please note it is not a comparison): We are comfortable putting money in PPF for a fixed return (which has a 7 year lock-in and tenure of 15 years). We also purchase insurance policies, wherein we pay yearly premium and our money is locked-in for the term of the policy ranging from 10-20 years.

So then why not look at equity as a part of your long term corpus? This asset class has proven to be the best performer over the long term. The icing on the cake is that no tax is levied on the long term capital gains from equity funds and dividends are tax free too.

Given below are the returns of the ELSS category over different time horizons:

ELSS Category	1 Yr	3 Yrs	5 Yrs	10 Yrs	15 Yrs
Average Returns	35.02	16.22	11.02	12.91	12.91
Best Performer	62.74	25.06	15.81	17.88	27.18
Worst Performer	25.04	4.94	(0.44)	2.04	10.88
CNX Nifty	26.37	14.38	9.60	12.59	16.12

Source: Accord Fintech %CAGR Returns as on 17-Apr-2014. Investments assumed as a SIP for the period.

Ideally, you should choose a fund for investment purposes based on different investment time frames and fund corpuses. In many cases investors tend to exit an ELSS investment once the lock in period is complete because they suffer notional losses due to market fluctuation or due to poor selection of funds. While the three year milestone can be used to review the performance of an ELSS investment, it should not be used as an automatic exit point.

Holding ELSS for a period of 10-15 years, as the data clearly shows, is better than stepping out at the end of 3 years. It is not only more fruitful for investors in terms of returns but it reduces the probability of facing negative returns as well. A minimum of 10-15 years is an ideal horizon for any ELSS investments, mainly because it gives the fund manager the room to take a long term view on the market and invest accordingly, as is clearly reflected from the long term returns.

My question to all investors is - If we are comfortable with PPF and Insurance products for 10-15 years why not ELSS? 

Below table shows the performance of existing tax-saving funds across different time periods.

Scheme Name	AUM (in Crs)	1 Yr	3 Yrs	5 Yrs	10 Yrs	15 Yrs
ICICI Pru Tax Plan	1,704.59	31.59	10.04	24.59	20.95	-
Quantum Tax Saving Fund	18.87	23.44	9.51	22.54	-	-
HDFC Long Term Adv Fund	925.81	27.30	8.81	21.97	18.47	-
Canara Rob Equity Tax Saver Fund	668.96	19.66	8.36	21.90	-	-
Reliance Tax Saver (ELSS) Fund	2,208.33	31.05	10.41	21.60	-	-
Religare Invesco Tax Plan	152.89	24.79	9.44	21.50	-	-
HDFC TaxSaver	3,710.86	27.48	6.50	21.04	20.86	19.90
Franklin India Taxshield	1,086.65	23.27	9.13	20.63	17.66	25.05
DSPBR Tax Saver Fund	757.94	23.19	7.91	19.91	-	-
Sahara Tax Gain Fund	10.51	29.88	7.58	19.82	17.94	18.63
L&T Tax Advt Fund	1,209.71	22.03	5.91	19.74	-	-
HSBC Tax Saver Equity Fund	180.73	24.67	9.80	19.23	-	-
BNP Paribas Tax Adv Fund	184.18	23.88	11.58	18.99	-	-
IDFC Tax Advt(ELSS) Fund	185.51	25.12	8.79	18.70	-	-
ING Tax Savings Fund	22.55	16.55	3.40	18.37	12.36	-
Birla SL Tax Relief '96	1,470.76	25.39	6.50	18.27	-	-
BOI AXA Tax Adv Fund	33.53	24.18	6.20	17.92	-	-
SBI Magnum TaxGain'93	4,163.09	24.42	8.74	17.72	-	-
Birla SL Tax Plan	128.89	24.54	7.69	16.85	-	-
JPMorgan India Tax Advantage Fund	5.60	19.92	5.22	16.79	-	-
Taurus Tax Shield Fund	88.31	14.92	3.90	16.73	14.15	-
Edelweiss ELSS Fund	29.73	23.32	8.78	16.29	-	-
L&T Tax Saver Fund	27.74	28.28	3.84	16.21	-	-
UTI ETSP Fund	436.97	18.54	5.48	15.73	-	-
Sundaram Tax Saver	1,139.10	15.87	5.78	15.30	-	-
Kotak Tax Saver Scheme	353.17	10.91	2.56	14.98	-	-
DWS Tax Saving Fund	41.86	20.84	5.17	13.72	-	-
LIC Nomura MF Tax Plan	30.36	20.44	4.02	12.83	7.88	8.38
JM Tax Gain Fund	29.98	22.18	3.90	11.40	-	-
Escorts Tax	2.46	19.34	-6.09	6.87	6.36	-
Axis LT Equity Fund	1,172.72	34.76	15.09	-	-	-
Union KBC Tax Saver Fund	62.04	19.20	-	-	-	-
S&P BSE SENSEX		20.81	5.27	15.46	14.45	13.62
CNX Nifty Index		19.17	5.18	14.90	13.75	13.85

Source:Accord Fintech, %CAGR Returns as on 17-Apr-2014. AUM figures for the month of March 2014. Returns are sorted on 5 year basis. All growth schemes have been considered.

Hence, equity can be a risky investment if you're investing for a short period of time, but with time on your side, equity is extremely rewarding.

As per AMFI's data, it has been seen that for the financial year 2013-14, in April 2013 only 6% of collection was done, whereas in the month of March 2014, 28% of sales took place for the ELSS category. Thus, we can say that most of them start their tax-saving at the end of the financial year instead at the start of the financial year.

It is beneficial that one should start their tax-saving at the start of the financial year and invest in ELSS category with a long term horizon.

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Poll dance: Mumbai votes as Bollywood, India Inc show the finger

SLIDESHOW

Thu, Apr 24, 2014 at 15:50

| Source: Moneycontrol.com

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.

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Maha: Moderate turnout, Bollywood, India Inc take lead

Nearly 15 percent turnout was recorded in the first few hours in 19 seats across Maharashtra in the third and final phase of elections in the state today with the tribal-dominated Nandurbar recording the highest 20.60 percent polling.

Mumbai recorded an average of 15.18 percent polling across all six parliamentary constituencies in first four hours. In Mumbai, known for subdued turnout in polls, Bollywood celebrities and India Inc honchos gave a head start to voting in the morning hours.

Celebrities like Rekha, Vidya Balan, Sunny Deol, Sonam Kapoor, Dharmendra, Aamir Khan and Prasoon Joshi cast their votes in the morning hours, so did Adi Godrej, Anil Ambani, SBI chairperson Arundhati Bhattacharya among others. "It's my responsibility to vote. To point fingers at others and (if) I face a problem, I need to have this on my finger," Balan said displaying her inked finger outside a booth in suburban Chembur.

Actor Aamir Khan, who cast his vote in suburban Bandra, said, "Voting is an important process in democracy. It is my duty as an Indian to vote". Actress Sonam Kapoor, who was among early-morning voters, said, "It is good to vote for those who make legitimate promises".

Cricket legend Sachin Tendulkar cast his vote along with wife Anjali around noon at a polling booth near their residence in suburban Bandra. The sports legend posted a selfie showing his inked finger on Twitter and said, "I have voted..Have U ? A wonderful start to my birthday as a responsible citizen of our great nation."

Among corporates, Anil Ambani walked into a polling booth in the tony Cuffe Parade locality, not far from his residence at the 'Sea Wind' tower at 0715 hours. Godrej chairman Adi Godrej too exercised his right to franchise in the morning hours.

However, HDFC chairman Deepak Parekh reportedly could not cast his vote as his name did not figure in the voters list. Other corporates who voted today were N Chandrasekaran of Tata Consultancy Services, HDFC vice chairman and chief executive Keki Mistry and Ajit Gulabchand, the chairman of infrastructure major HCC.

Among politicians, NCP chief Sharad Pawar cast his vote for the first time in Mumbai. Congress nominees and sitting MPs Priya Dutt, Milind Deora, BJP candidate Poonam Mahajan, Leader of Opposition in Legislative Council Vinod Tawde also exercised their right to franchise in Mumbai.

Shiv Sena president Uddhav Thackeray cast his vote in suburban Bandra. "I am voting for the first time without Balasaheb and am feeling his absence. However, the party is following the
path laid down by him. His absence will always be felt," he said.

Uddhav's estranged cousin and MNS president Raj Thackeray also cast his vote at Shivaji Park which falls in the Mumbai South Central seat. Earlier, voting began on a brisk note in Mumbai and rest of the state with most of the voters seemed keen to avoid sweltering heat as mercury has risen to 39 degree Celsius in the last two days.

In neighbouring Thane, polling began on a good note in morning hours with a large number of women voters too turning out to exercise their right to franchise. Enthusiasm among voters was also seen in Marathwada and North Maharashtra regions.

The polling percentage so far is:  Nandurbar-ST (20.60%), Dhule (16%), Jalgaon (14.83%), Raver (13.82%), Jalna (16.27 %), Aurangabad (13.69 %), Dindori (ST) 19%, Nashik (18.40 %), Palghar (9.32%), Bhivandi (10.25%), Kalyan (9.50%), Thane (9.13 %), Mumbai North (18 %), Mumbai North West (16.70%), Mumbai North East (15.20 %), Mumbai North Central  (15.50 %), Mumbai South Central (12.50%), Mumbai South (13.20%), Raigad (19 %).

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ADB to realign operations in Asia-Pacific to tackle poverty

Manila based multi-lateral funding body Asian Development Bank (ADB) today said it would realign its operations in the Asia-Pacific region to give a thrust to inclusiveness, saying the region continues to face huge poverty challenges.

"The Asia-Pacific region is changing fast- and so must ADB.  The challenge for ADB is to help developing member countries eradicate remaining poverty, support greater inclusiveness to address inequalities, and become more relevant and effective in middle-income countries," ADB President Takehiko Nakao said.

He was speaking during the release of ADB's mid-term review report on its long-term strategic framework -Strategy 2020.

Also read: India forecast to grow 5.5% this year: ADB 

"The report shows that extreme poverty in the region can be eliminated by 2025. However, this may not be enough. Poverty in Asia and the Pacific is understated on the current poverty threshold of USD 1.25 per day...this threshold is too low for poor populations in the region to subsist," Nakao said.

He said ADB would realign its operations to emphasise on inclusiveness, building resilience and strengthening support for middle-income countries. Citing the report of mid-term review, ADB said the region continues to face a huge poverty challenge and more than 700 million people live below the extreme poverty line of USD 1.25 per day.

It said inequalities within and between countries in the region are also increasing. The report has identified 10 strategic priorities.

The report said there is a need to sharpen and re-balance ADB operations, strengthen responsiveness to the changing business environment as well as increase capacity and effectiveness.

ADB said it will continue to focus on infrastructure  development as it plays a critical role in reducing poverty and promoting inclusive growth. The funding body said it will also double its investments in health and education sectors.

Among others, the report also outlines ADB's new approaches in mobilising resources, simplifying processes, strengthening staff skills, and using information and communications technology, Nakao said.

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CCI Order: Third Party Appeals?

Published on Sat, Apr 19,2014 | 18:15, Updated at Sat, Apr 19 at 18:15Source : CNBC-TV18 |   Watch Video :

When can a third party appeal against CCI's decision? The Jet-Etihad merger became the test case for this question when former Air India Executive Director Jitendra Bhargava appealed against CCI's approval order. Last week, the Competition Appellate Tribunal dismissed Bhargava's appeal saying he is not an aggrieved party. Has the COMPAT taken a narrow view of the situation? Payaswini Upadhyay puts that question to experts.

Europe's competition regime allows for third parties such as competitors, customers and suppliers to comment on a merger transaction. In fact, the Commission is mandated to invite third parties to submit their comments. Individual or groups affected by the transaction can also appeal a regulatory approval in court. This liberal regime has facilitated successful third party interventions in the UK- one such was Ryanair's attempt to acquire Aer Lingus

Paku Khan

Partner, Khaitan & Co.

Former Case Officer, Irish Competition Authority

"Even before the notification was formally filed, the European Commission required Ryanair to provide contact information for key customers, competitors and suppliers at every affected airport. The moment the notification was filed the European Commission sent out an information request to all of those interested parties and gave them a short time period to provide their responses. And the reason for that was the European Commission wanted to have as much information as possible. They asked the interested parties what do you think about the transaction which then helped them decide what they would do next- whether they would do a more exhaustive investigation which is what they did in this case or whether they would clear it which is what they didn't do in this case."

In the United States, though the merger control guidelines do not codify the process for third party interventions, the regulators call for information as a best practice. In addition, the United States competition law- Clayton Act- permits private parties who have suffered injury as a result of any antitrust violation, or are threatened with injury, to seek equitable relief from the courts, including, injunctive relief.

Ian Conner

Partner, Kirkland & Ellis

"Typically, they do need standing or evidence that they will be aggrieved by the merger but by and large the mergers that are going to be challenged in the US by private citizens- they would typically be able to meet the standing requirement which is not that high for a merger. Here there argument would be that if prices go up on an airline ticket and they buy those airline tickets, they would be injured and since mergers are looking forward, they just need to show that there is a probability that they will be injured and not that they have been injured by the merger."

In India, the law allows for third party representation before the CCI only if the regulator initiates a phase 2 i.e. a detailed investigation against a merger. If, however, the CCI takes a prima facie view that a merger will not have an appreciable adverse effect on competition and clears it in Phase 1, third parties get no opportunity to represent their case of their own volition. The Act however provides for an appeal.

It says any person, aggrieved by any direction, decision or order of the CCI may prefer an appeal to the Appellate Tribunal. CCI's merger approval of the Jet-Etihad deal became a test case to determine who would qualify as an aggrieved person. A former Air India official approached the Competition Appellate Tribunal alleging that the merger will eliminate competition in the international air passengers market and adversely impact Air India's operations and consumers. Last week, the Tribunal dismissed Bhargava's appeal saying that he does not pass the test of an aggrieved person and the fear of increase in fares is pre mature.

Amitabh Kumar

Partner, JSA

"The way it works today is that third parties come to know of a merger only once its approved and the order has been uploaded on the website of the CCI. And in any place in the world where you don't have chance to go upfront and object to a proposed merger, post merger it becomes more difficult because courts will not like to upset something which has been done. Getting out of the merger process is a very costly thing for the corporations. So courts would normally like to put a very high standard. So it seems there is a gap in the law as it has been framed that while the law wants third parties to object if they are going to be affected but at the same time, they won't get a fair chance to object unless the matter goes to a Phase 2 investigation."

Gopal Subramanium

Senior Counsel Former Solicitor General

"The expression 'person aggrieved' has been interpreted by the Supreme Court in so many decisions. But when you look at the right of appeal under a statute, then you have to interpret the words strictly because the Tribunal is a creature of the statute whereas a court is quite different. In a court, the jurisdiction is different- a High Court has wide plenary jurisdiction. It can entertain any person, it can allow any person to implead himself, it can allow any person to intervene. Now all this is not available in respect of a Tribunal. If it were to decide that I will allow an appeal at the instance of a person when it is only Phase 1- where the public has not interposed because Phase 2 has not come- in that case the order of the Tribunal itself will be open to serious challenge and it would delay the process of genuine approvals."

That's once concern that all the experts in this story voiced to me i.e. if the expression aggrieved person is interpreted widely, it would be open to widespread abuse. At the same time, they also believed that if this appeal had been filed by a group- for instance Air Passengers Association- it would have probably passed the test of aggrieved person.

In Mumbai, Payaswini Upadhyay

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Reebok India's comeback strategy

Recovering from the Rs 870 crore scam that hit the sports goods maker Reebok in 2012, it has restructured its business and repositioned the brand. This week, the sportswear brand kicked off a marketing campaign that debuts its new logo, as well as two new brand ambassadors in John Abraham and Nargis Fakhri.

It's been a year of change for Reebok in India. Recovering from the Rs 870 crore scam that hit the sports goods maker in 2012, Reebok has restructured its business and repositioned the brand. This week, the sportswear brand kicked off a marketing campaign that debuts its new logo, as well as two new brand ambassadors in John Abraham and Nargis Fakhri. Here's the MD of Reebok India, Eric Haskell on the company's growth strategy and new positioning.

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India Inc. 'CAG'ed! Telecom Who Else?

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

Published on Sat, Apr 19,2014 | 18:15, Updated at Sat, Apr 19 at 18:19Source : CNBC-TV18 |   Watch Video :

This week the Supreme Court said that it is the duty of the Comptroller & Auditor General of India to audit all transactions of the Union & State as also to audit all receipts payable to the Consolidated Fund of India. And hence the apex court ruled that CAG's examination of the accounts of private telecom service providers in a revenue sharing contract is extremely important to ascertain whether there is an unlawful gain to the service provider and an unlawful to loss to the Union. Is it just telecom companies that can now be audited by CAG or does the application of this judgment extend to all situations where the government has a revenue share? To discuss the scope & enforcement of this order, CNBC-TV18's Menaka Doshi speaks to Rajeev Uberoi, Group General Counsel & Group Head - Legal & Compliance, IDFC and Vikram Nankani of ELP.

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Companies Act: How Will Life Change?

Published on Sat, Apr 19,2014 | 18:29, Updated at Sat, Apr 19 at 18:58Source : Moneycontrol.com |   Watch Video :

Hello & Welcome to this brand new series – Companies, Act! Over the next many weeks we will analyze the impact of the new company law on incorporation, capital raising, governance, board management, accounting and audit, M&A, litigation and bankruptcy. On this first episode we start by giving you the big picture view on how life has changed for companies, their management, their boards, auditors and their shareholders. And to that I have with Bharat Vasani, Cyril Shroff, Jamil Khatri & D M Muthukumaran.

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Jay BharatMarut standalone Mar '14 sales at Rs 329.64 crore

Apr 19, 2014, 03.15 PM IST | Source: Moneycontrol.com Jay Bharat Maruti has reported a standalone sales turnover of Rs 329.64 crore and a net loss of Rs 3.70 crore for the quarter ended Mar '14 Like this story, share it with millions of investors on M3 Jay BharatMarut standalone Mar '14 sales at Rs 329.64 crore Jay Bharat Maruti has reported a standalone sales turnover of Rs 329.64 crore and a net loss of Rs 3.70 crore for the quarter ended Mar '14 Jay Bharat Maruti has reported a standalone sales turnover of Rs 329.64 crore and a net loss of Rs 3.70 crore for the quarter ended Mar '14. Other income for the quarter was Rs 1.07 crore. For the quarter ended Mar 2013 the standalone sales turnover was Rs 329.03 crore and net profit was Rs 9.68 crore, and other income Rs 2.30 crore. Jay BharatMarut shares closed at 64.95 on April 16, 2014 (BSE) and has given 55.01% returns over the last 6 months and 32.42% over the last 12 months. Jay Bharat Maruti Standalone Quarterly Results -------- in Rs. Cr. -------- Mar '14 Dec '13 Sep '13 Sales Turnover 329.64 303.86 296.07 Other Income 1.07 0.97 0.28 Total Income 330.71 304.83 296.35 Total Expenses 301.69 276.67 268.05 Operating Profit 27.95 27.19 28.02 Profit On Sale Of Assets -- -- -- Profit On Sale Of Investments -- -- -- Gain/Loss On Foreign Exchange -- -- -- VRS Adjustment -- -- -- Other Extraordinary Income/Expenses -- -- -- Total Extraordinary Income/Expenses -14.41 -- -- Tax On Extraordinary Items -- -- -- Net Extra Ordinary Income/Expenses -- -- -- Gross Profit 29.02 28.16 28.30 Interest 5.79 5.40 5.61 PBDT 8.81 22.75 22.69 Depreciation 12.07 11.27 11.33 Depreciation On Revaluation Of Assets -- -- -- PBT -3.26 11.48 11.36 Tax 0.44 3.90 3.82 Net Profit -3.70 7.58 7.54 Prior Years Income/Expenses -- -- -- Depreciation for Previous Years Written Back/ Provided -- -- -- Dividend -- -- -- Dividend Tax -- -- -- Dividend (%) -- -- -- Earnings Per Share -- 3.50 3.48 Book Value -- -- -- Equity 10.83 10.83 10.83 Reserves -- -- -- Face Value 5.00 5.00 5.00 Source : Dion Global Solutions Limited

Buy & sell politicians on Power Play - the political stock exchange video of the day Chandra says satisfied with TCS' FY14, FY15 to be better

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