From technical questions to personal ones ranging from channelling the right investments to Shivakumar's own growth story, students asked all these and more.
In today's episode two students from IIT Delhi get to interact with PepsiCo India CEO D. Shivakumar and the CFO Kimsuka Narasimhan. From technical questions to personal ones ranging from channelling the right investments to Shivakumar's own growth story, students asked all these and more.
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In first major disclosure about money held in Swiss banks, government on Friday said Rs 4,479 crore is held in the accounts owned by Indians, who figured on the HSBC List, and the Income Tax Department has initiated action against 79 of such account holders.
Besides, the tax department and other agencies including Enforcement Directorate are probing cases involving unaccounted wealth totalling Rs 14,957.95 crore within India. In case of suspected black money abroad, the disclosure relates to a list of 628 Indians, who figured on a list of account holders in HSBC's Geneva branch that India had got from the French government.
Out of these, no balance has been found in case of 289 accounts, according to a report of the Special Investigation Team (SIT) on black money which was submitted to the Supreme Court.
"Out of the 628 persons, 201 are either non-residents or non-traceable, leaving 427 persons cases as actionable cases," an official statement said while releasing "relevant portion of the second report of SIT on black money".
The amount involved in these cases is about Rs 4,479 crore. Of this, the Income Tax Department has finalised assessment for 79 entities involving more than 300 cases. "An amount of Rs 2,926 crore has been brought to tax towards the undisclosed balances in the accounts relating to these persons," the statement said, adding that taxes along with interest at applicable rates have been levied.
"Penalty proceedings under Income Tax Act, 1961 have been initiated in 46 cases. Such penalties have been levied in 3 cases so far. With regard to other assesses, proceedings are pending," it said.
The statement, however, did not disclose the names of the the account holders.
Prosecutions have been initiated in 6 cases for wilful attempts to evade taxes besides show cause notices have been issued in 10 others, it said.
"In other cases, necessary action is being expedited and substantial progress is expected in coming months," it added. Earlier in the day, Finance Minister Arun Jaitley had said at a function here that proceedings in the cases related to the HSBC list will be completed by March 31, 2015.
While suggesting steps like curbs on cash transportation beyond a level and mandatory quoting of PAN for cash and cheque payments over Rs one lakh, the SIT has flagged off mining, ponzi schemes, iron ore exports, misuse of export- import route as major areas prone to black money transactions.
It also pointed out that 'Angadias', persons carry large amounts of cash while acting as 'money couriers' in Gujarat and Maharashtra especially, were playing a key role in transfer of unaccounted money.
Giving update on various cases, the statement said that Directorate of Revenue Intelligence (DRI) has furnished information in 31 cases of iron ore export, of which 11 parties have admitted to undervaluation and paid Rs 116.73 crore.
In other cases, show cause notices have been issued and action will be taken in accordance with law.
Besides, the Directorate of Enforcement is attaching property worth Rs 400 crore and has arrested a person in a case relating to mining in Odisha.
In Karnataka, three attachment orders have been passed for assets worth a total of Rs 995.97 crore. In several cases in Goa and Jharkhand, preliminary scrutiny and investigation is in progress in connection with illegal mining.
The report also pointed out that the ED is facing difficulties in taking coercive action in ponzi chit-fund cases due to a stay order by Kolkata High Court.
In one case in Jharkhand, provisional attachment orders for properties worth Rs 452.43 crore were passed while Rs 884.13 crore worth of assets have been attached in another mining case in Karnataka.
In a similar case in Andhra Pradesh, Rs 1093.10 crore worth assets have been attached.
Giving suggestions to check black money menace, SIT said PAN should be made mandatory in every transaction of over Rs 1 lakh, either by cash or cheque.
Citing examples of European countries, it said that there should be a limit on transportation and holding of cash. Government may consider reasonable threshold which could be Rs 10 lakh or Rs 15 lakh.
"This would control holding of unaccounted money to a large extent. This would also control transfer of unaccounted cash from one destination to other, which at present is rampant, may be Angadias or by other means," it said.
The SIT has also suggested setting up of an institutional mechanism to examine mismatch between export/import data with corresponding data of other countries on a quarterly basis to unearth black money.
Also, the shipping bills should include the international market price of goods and machinery sought to be exported. "This suggestion is under consideration and is likely to be implemented within short time," the statement said. The SIT also suggested that the tax evasion of Rs 50 lakh or more be made a 'predicate offence' so that action can be taken under Prevention of Money Laundering Act.
In case it is found that an individual or entity owns a property abroad in violation of the law, a provision should be made in the FEMA to provide for seizure and confiscation of property of equivalent value within the country.
Also, there should be a dynamic interaction between different stakeholders like reporting entities, Financial Intelligence Unit and law enforcement authorities.
In cases where ED has attached a property and there are income tax dues to be collected, the SIT said that the former should be open to recovering dues from the attached property.
It also suggested setting up of a central KYC registry to weed out use of multiple identities for financial transactions.
SIT said that at least five additional chief judicial magistrates courts should be set up in Mumbai to deal with 5000 pending IT prosecution cases.
Parrikar, who assumed charge of Defence Ministry a month ago, said having representatives with a very clear method of payment and fees was a better solution to the defence forces than delaying the procurement procedures.
Defence Minister Manohar Parrikar today said the government is planning to legalise representatives of various foreign arms companies in the country, for speedy purchase of military hardware. "We will allow company representatives.
They will be middlemen. When I say middlemen it doesn't mean commission agents or 'dalals'. He will be a company representative in India," Parrikar told PTI. The Minister said the company representative can work on a fee basis. "He will be the information provider," he added. "Several times we require feedback and also someone who can get us information.
There are some foreign companies which want to come to India... they can't go on sending their people here," Parrikar said. He said the concept of legalising middlemen has not been given a final thought. "I am throwing this idea open, its not a decision.
This is loud thinking. Reactions and feedback is invited from public," he said. The Minister said middlemen can be permitted to charge expenses from parent companies for representing them in the country. Yesterday, Parrikar had said that a "clear-cut" policy will be unveiled next month on engaging representatives for arms purchases that will also provide for punitive action against firms found involved in kickbacks.
"We should be in a position to have a very clear cut policy by January on representatives and on blacklisting," he had said, promising a raft of measures to ensure transparency and at the same time speeding up such purchases to modernise the armed forces.
Parrikar, who assumed charge of Defence Ministry a month ago, said having representatives with a very clear method of payment and fees was a better solution to the defence forces than delaying the procurement procedures.
India's military procurements have been dogged by long delays and allegations of graft and many defence experts had suggested legalising "agents" for speedy purchase of military hardware.
Murali Vijay gave good company to Kohli as India were cruising at one stage with the score on 242 for 2. Nathan Lyon gave Australia the all important breakthrough by trapping Vijay right in front of his stumps as India succumbed in front of an average Aussie attack.
Virat Kohli was the star of the show as he showed tremendous skill and counter-attacking punch to give India more than a chance to win the Test match in Adelaide but as is the case with most of the Indian teams, India fell short by 48 runs owing to some insipid batting and poor match awareness.
Murali Vijay gave good company to Kohli as India were cruising at one stage with the score on 242 for 2. Nathan Lyon gave Australia the all important breakthrough by trapping Vijay right in front of his stumps as India succumbed in front of an average Aussie attack.
Rohit Sharma and Wridhimman Saha both got out cheaply which gave Australia a sniff into the Indian middle-order and once the Aussies were able to smell victory there was no looking back.
Insipid batting lets Virat Kohli down as Nathan Lyon spins Australia to victory over India.
Kohli became only the second player in Test history to score a century in both innings on his debut as captain but the stupendous feat was completely overshadowed by the shockingly inept performance by his other batting colleagues, who seemed bent on committing harakiri.
Off-spinner Nathan Lyon was the pick of the Australian bowler as he exploited the rough on the track to good effect to finish with figures for 7/152 for an overall haul of 12 wickets in the match. Lyon was adjudged Man of the Match for his superlative effort.
The result will come as a huge disappointment for the Indians, who virtually lost the match in the very last session when eight wickets fell in quick succession.
Kohli was left to rue yet another India's infamous batting collapses after putting the team in a rather comfortable position right up till the tea session with a career-best knock. He was dismissed by Lyon.
For Kohli, it was his eighth career hundred even though he was left a disappointed man on his debut as captain. He got good support from Murali Vijay who was unlucky, missing out on what could have been his fifth Test hundred by just one run.
The umpiring was below average as Shikhar Dhawan and Ajinkya Rahane had to bear the brunt of it as India from the heights of Everest came down to ashes to lose the Test match.
The next Test match will start from the 17th of December at Gabba, Brisbane with the hosts leading the 4 match series 1-0.
India permits 51 percent FDI in multi-brand retail and 100 percent overseas investments in single retail sector.
There is no proposal to impose restrictions on foreign direct investment (FDI) in the retail sector, Parliament was informed Friday.
"There is no proposal to impose restriction of FDI in retail and agriculture sector in the country," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.
The reply assumes significance as the minister had earlier said that the government will not "entertain" foreign direct investment in multi-brand retail trading.
India permits 51 percent FDI in multi-brand retail and 100 percent overseas investments in single retail sector.
Replying to a separate question on free trade agreement, she said that India and the European Union are presently negotiating a bilateral Broad based Trade and Investment
Agreement (BTIA).
"So far 15 rounds of negotiations have been held. The last engagement between both sides was held in May 2013 in New Delhi. Since then, EU had largely disengaged from the negotiation. However, recently a meeting was held between both sides to take stock," she said.
Brokerage house Dolat Capital has recommended a reduce rating on Voltas with a target price of Rs 225 in its November 18, 2014 research report.
"Voltas reported in line results, which was a function of better revenue mix with higher contribution from the UCP segment. While revenues were 11% below estimates, better product mix led to EBITDA and profitability in line with our estimates. Revenue for the quarter declined 9% YoY to `9.8 bn led by the EMPS (projects business) and EPS (agency business) segment. Current quarter performance has been in line with previous few quarters wherein the UCP segment has been the contributor of growth and profitability. Order flows during the quarter was also muted at `4 bn leading to an order book of `36.8 bn (-3% QoQ). With delayed improvement in the EMPS segment coupled with expensive valuations (post recent run-up) we downgrade the stock to REDUCE."
Valuation: "UCP segment continues to be growth driver for the company. Current quarter performance has also been driven by the UCP segment, while the EMPS segment continues to be a laggard. Recovery in margins in the EMPS segment (in the wake execution delays faced by the company) remains our key concern. The stock has also run-up recently which caps any meaningful upside over the medium term. The stock trades at P/E multiple of 24.5x based on our FY16 EPS estimate of `11.4 per share. While we maintain our target price of Rs 225 per share, we change our rating to REDUCE from ACCUMULATE earlier", says Dolat Capital research report.
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Sharekhan is bullish on Cox & Kings (CKL) and has recommended buy rating on the stock with a target price of Rs 395 in its November 17, 2014 research report.
"Cox & Kings (CKL) registered a 12% revenue growth and an 8% growth in the operating profit on a like-to-like basis (excluding the hived-off camping business' financials). The Indian business' revenues and operating profit grew by 17% each while the education business revenues grew by 10% and profits grew by 19% on a Y-o-Y basis. The international leisure travel business was a drag on the profitability with its OPM declining by above 400BPS (due to higher promotional and technology expenses).
With improving consumer sentiment, CKL's management expects the domestic outbound tourism segment (accounts for more than 50% of the Indian business) to grow by at least 25% in the near term. The capacity utilisation at the education and Meininger businesses is expected to improve in the coming years. This should help in expanding the OPM of CKL's consolidated business to 40% in the coming years.
CKL's net debt has reduced by Rs 730 crore from Rs 4,205 crore in March 2014. The company will further reduce its debt by about Rs250 crore by the end of FY2015. Going ahead, the management targets to reduce the debt by Rs500 crore each in FY2016 and FY2017 through internal accruals (which would result in savings of Rs 40 crore in interest cost each year).
We have marginally reduced our earnings estimate for FY2015 to factor in the lower margins in the international leisure travel business. However, we have broadly maintained our earnings estimates for FY2016 and FY2017. The stock is currently trading at 11.4x its FY2016E earnings and EV/EBIDTA of 8x. We maintain our Buy recommendation on the stock with a price target of Rs 395", says Sharekhan research report.
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Homegrown automobile major Mahindra & Mahindra is close to striking a deal with the parent company (NEVS) of Swedish carmaker Saab, according to a recent Dow Jones report, which cited court documents submitted in the parent's bankruptcy case pointing to the Indian company.
If the deal comes through, M&M will become the fourth owner of Saab in as many years (GM, Spyker and current parent NEVS), not counting a near-complete deal when Spyker had to call off its sale to two Chinese automakers at the last moment.
Even as Saab -- best remembered as a automaker that made premium cars with names starting with the number 9 (9-3, 9-5 and so on) and which was said to inspire a small but loyal followers of "intellectuals" -- may have seen some of its brand appeal erode due to the turbulence over the past few years, it is obvious what Mahindra's strategy is here.
For one, it is NEVS's focus on electric vehicles that has likely caught the Indian automaker's attention. As can be seen from M&M's 2010 buyout of Bangalore electric carmaker Reva, it appears it is one area the company is extremely bullish on. Saab, with an electric prototype of its renowned 9-3 sedan ready, slots right into M&M's plan.
That said, it also Saab's former brand appeal, which may have also attracted M&M. A marketing study once labeled Saab's small but passionate group of owners as having traits it called 'Snaabery'; another expert said a typical Saab owner was 10 times as passionate about their vehicle as the average Volkswagen owner. (It must be remembered that M&M had also bid to acquire Saab when it was put up on the block in 2012.)
Chairman Anand Mahindra was quoted in a Financial Times interview about his focus on acquiring brands thus: "We need brands, because the one thing you cannot build, if you want to grow globally at least—something that can take a lifetime, and we are in a hurry—is brands."
However, Mahindra also needs to re-look at its aggressive M&A strategy.
In M&M's previous buys, Reva does not appear to have made significant strides at least on the sales side, though it must be added that the size of the electric car market itself is inhibiting.
Korean automaker Ssangyong, which the carmaker acquired in 2011, continues to bleed though the company is hoping a turnaround takes place after several models planned for launch over the next two years come to the market.
M&M bought out Kinetic in 2008 to gain a foothold into the two-wheeler market but Kinetic's refurbished scooters Stallio, Rodeo and Duro were not that successful. So much that the company decided to go back to the drawing board and recently launched the Gusto on an all-new non-Kinetic platform.
Recently, it also picked up a majority stake in French Peugeot's two wheeler company but it is too soon to judge the acquisition.
Previously, M&M had tried, and failed, to buy brands such as Aston Martin, Jaguar Land Rover, Ducati and Saab.
M&M stock price
On December 11, 2014, Mahindra and Mahindra closed at Rs 1265.65, up Rs 0.35, or 0.03 percent. The 52-week high of the share was Rs 1421.00 and the 52-week low was Rs 847.00.
The company's trailing 12-month (TTM) EPS was at Rs 58.92 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 21.48. The latest book value of the company is Rs 270.60 per share. At current value, the price-to-book value of the company is 4.68.
Kushal Tradelink Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 11, 2014, has unanimously ratified the investment made in the equity share capital of its Wholly Owned Subsidiary beyond the limit decided in the board meeting held as on December 24, 2013.
Kushal Tradelink Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 11, 2014, has unanimously ratified the investment made in the equity share capital of its Wholly Owned Subsidiary beyond the limit decided in the board meeting held as on December 24, 2013.The board noted that the said investment was made due to business exigency for release of newly sanctioned credit facilities and after considering the same, unanimously in the today's board meeting i.e. December 11, 2014 have decided to increase the investment limit towards the equity share capital of its Wholly Owned Subsidiary, Kushal Impex Pte Ltd. and approve to invest, from time to time, upto an amount of Rs. 1,000,0000 (Rs. One Crore only) or (equivalent amount required in Foreign Currency).Source : BSE
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