 |
Accordingly, L&T Triple Ace Bond Fund will be managed by Shriram Ramanathan,
L&T Liquid Fund will be jointly managed by Shriram Ramanathan & Jaipan Shah,
L&T Flexi Bond Fund and L&T Gilt Fund will be managed by Vikram Chopra,
L&T Ultra Short Term Fund will be jointly managed by Vikram Chopra & Jaipan Shah,
L&T Cash Fund, L&T Floating Rate Fund and L&T Low Duration Fund will be jointly managed by Vikram Chopra & Richa Sharma.
For Tesco, the key to success will be the potential to scale up the investment already approved.
Multi-brand retail companies are hoping that the Budget will deliver new expansion opportunities for them - this despite the BJP's staunch opposition to FDI in the sector-but British retailers remain cautiously optimistic.
For Tesco, the key to success will be the potential to scale up the investment already approved.
Amit Tulsian, Partner-international markets, KPMG says, "In terms of Tesco, if you look at Trent today, it is a regional play. They will be aspirant in making it a much larger play in order to bring in scale to their business either in form of distribution which is the front-end or building up a supply chain backend which is robust enough to help grow the front-end and economies of the business as such."
Many big companies are prepared to take into account BJP sensitivities over protecting traditional retail.
Simon Moore, director-international, Confederation of British Industry says, " I think multi-brand retailers would very much welcome relaxation of the rules, a broadening of the rules, acceptance of a wider group of products being delivered to the Indian consumer and the ability to establish and build those partnerships with Indian companies and India as indeed they have been doing.
So, it is more of the same and more liberalisation inline with the messages we are already hearing about the pro business stance from the government."
The Tesco adventure in India may not be sustainable long term as it stands. Companies are hoping that the Budget will deliver new possibilities for multi-brand multiplication even if they don't quite get all that they would like to see.
ICICIdirect.com is bullish on Canara Bank and has recommended buy rating on the stock with a target price of Rs 510, in its research report dated June 30, 2014.
"The share price of Canara Bank signalled a medium term trend reversal during late May 2014 as it steered past the most dominating overhead trendline drawn off 2010 highs. A strong volume led breakout past a four year supply line indicated strong come back by the bulls in the present scenario.
Over the last five weeks the stock is seen consolidating sideways in a narrow range of Rs 415-495 levels. This sideways consolidation preceded by the strong breakout rally from March low of Rs 212 to May 2014 high of Rs 491 is seen as a healthy breather taken by the bulls to work off short term overbought conditions. We believe this consolidation is likely to act as a launch pad for further northward journey and therefore provides a decent entry opportunity with a good reward/risk set-up to ride the next upmove.
We expect the stock to conclude the current consolidation and head towards Rs 536 levels in the medium term. The price projection is based on equality of the current move from June 2014 low of Rs 416 with the late May 2014 rally which measured 120 points (416+120 = 536), which also coincides with the June 2013 high of Rs 533 levels", says ICICIdirect.com research report.
Strategy: Buy Canara Bank in the range of Rs 450.00-Rs 440.00 for a target of Rs 510.00 with a stoploss of Rs 417.00
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings.
Seeking to boost household savings, the Finance Ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh. Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income-Tax Act.
Sources said the revenue department is assessing the burden on the exchequer in case of increase in the benefit limit. The announcement is expected in the Budget.
The Budget for 2014-15 will be presented by Finance Minister Arun Jaitley in the Lok Sabha on July 10.
Also Read: Clarity on GST likely in Budget; bullish on banks, says Nomura
There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The savings rate has come down from over 38 percent of GDP in 2008 to 30 per cent in 2012-13.
The hike in the exemption limit, sources said, would provide much needed relief to the salary earners who are reeling under the impact of high inflation. The Direct Taxes Code (DTC) too has recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per annum.
The financial instruments which enjoy exemption include life insurance premium, public provident fund, employees provident fund, National Savings Certificates, repayment of capital on home loan, equity linked saving schemes sold by mutual funds and bank FDs of five year maturity.
The cyclonic circulation near the coastal parts of Odisha and Andhra Pradesh will continue to bring good Monsoon rain over Odisha and Andhra Pradesh. Due the influence of the system, no dry spell is in the offing for East and Northeast India. According to latest weather update by Skymet Meteorology, here's a list of top ten rainiest cities in India on Friday, 27th of June.
Cities State Rainfall (in millimetres) Malda West Bengal 189 Pasighat Arunachal Pradesh 132 Jagdalpur Chhattisgarh 72 Cherrapunji Meghalaya 39 Balurghat West Bengal 38 North Lakhimpur Assam 32 Dibrugarh Assam 26 Ambikapur Chhattisgarh 24 Jalpaiguri West Bengal 23 Nellore Andhra Pradesh 22
By: Skymetweather.com
IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.
Non Convertible Debentures (NCDs) have recently become the preferred route of investment for multilateral agency International Finance Corporation (IFC) in debt for non banking financial companies (NBFCs).
"Recently we have started debt financing through NCDs to NBFCs. The first one is AU financiers, a Rajasthan-based NBFC of USD 25 million. We are looking at more opportunities through this route," IFC senior investment officer A K Agarwal said here today on the sidelines of a financial markets conclave by CII.
IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.
Asked about the reason for NCDs as the new preferred route for debt financing, Agarwal said this instrument was an option due to restrictions on ECBs for NBFCs. "As per ECB guidelines, NBFCs were not allowed to raise Dollars. IFC can only invest in Dollars as we do not have an India balance sheet. But under the NCD guidelines Dollars can be converted in spot market and can be invested in rupee lending as FIIs," Agarwal said.
He said IFC remained committed to MFIs and will continue to invest in the sector. Agarwal declined to comment on whether the agency was planning any hike in its stake in the MFI Bandhan once it was converted to a bank.
Bandhan, a city based MFI had received in-principal approval for a banking licence and IFC had close to 11 percent stake. Total exposure of IFC in India was roughly USD 4.5 billion. Of that around 1/3 was equity and 2/3 debt. Financial sector exposure is estimated to be around 30-35 per cent. "We have been investing more than a billion dollar year-on-year," Agarwal added.
The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.
In his first visit to Tamil Nadu after becoming Prime Minister, Narendra Modi will make a brief stopover here tomorrow enroute to Sriharikota to witness the launch of ISRO's PSLV C-23 rocket.
Modi has no official engagements in the city even as state BJP sources said they have not planned any function for the leader at the airport so far. Security has been beefed up at the airport in view of Modi's visit, police said.
The Prime Minister's special aircraft from New Delhi is expected to land at around 3.55 pm after which he is scheduled to reach Sriharikota by a helicopter following a brief stopover.
Four helicopters have been stationed here for use by the Prime Minister and his entourage, police said.
The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.
The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday.
Five persons were killed and ten others injured after an explosion occurred at the Alang ship breaking yard in Bhavnagar district in Gujarat.
The blast was triggered by a gas leak at plot no 140, where ship breaking working was in progress.
The injured labourers have been shifted to a hospital.
The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday .
The fire in the incident had also hit nearby houses, shops and coconut plantations.
GAIL stock price
On June 27, 2014, GAIL India closed at Rs 456.10, down Rs 3.65, or 0.79 percent. The 52-week high of the share was Rs 469.55 and the 52-week low was Rs 273.00.
The company's trailing 12-month (TTM) EPS was at Rs 34.49 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 13.22. The latest book value of the company is Rs 225.49 per share. At current value, the price-to-book value of the company is 2.02.
IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.
Non Convertible Debentures (NCDs) have recently become the preferred route of investment for multilateral agency International Finance Corporation (IFC) in debt for non banking financial companies (NBFCs).
"Recently we have started debt financing through NCDs to NBFCs. The first one is AU financiers, a Rajasthan-based NBFC of USD 25 million. We are looking at more opportunities through this route," IFC senior investment officer A K Agarwal said here today on the sidelines of a financial markets conclave by CII.
IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.
Asked about the reason for NCDs as the new preferred route for debt financing, Agarwal said this instrument was an option due to restrictions on ECBs for NBFCs. "As per ECB guidelines, NBFCs were not allowed to raise Dollars. IFC can only invest in Dollars as we do not have an India balance sheet. But under the NCD guidelines Dollars can be converted in spot market and can be invested in rupee lending as FIIs," Agarwal said.
He said IFC remained committed to MFIs and will continue to invest in the sector. Agarwal declined to comment on whether the agency was planning any hike in its stake in the MFI Bandhan once it was converted to a bank.
Bandhan, a city based MFI had received in-principal approval for a banking licence and IFC had close to 11 percent stake. Total exposure of IFC in India was roughly USD 4.5 billion. Of that around 1/3 was equity and 2/3 debt. Financial sector exposure is estimated to be around 30-35 per cent. "We have been investing more than a billion dollar year-on-year," Agarwal added.
If Nifty do break 7480 we should move lower to 7400 may be even 7350, says Technical Analyst, Mohit Gaba.
The Nifty is holding up above the 7480 level, this level is proving to be a good support. We could be in for a few more days of consolidation unless we have a strong trend day (a day where we close at the highs of the session after a 2 percent plus move on the index).
On the other hand if we do break 7480 we should move lower to 7400 may be even 7350.
The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.
In his first visit to Tamil Nadu after becoming Prime Minister, Narendra Modi will make a brief stopover here tomorrow enroute to Sriharikota to witness the launch of ISRO's PSLV C-23 rocket.
Modi has no official engagements in the city even as state BJP sources said they have not planned any function for the leader at the airport so far. Security has been beefed up at the airport in view of Modi's visit, police said.
The Prime Minister's special aircraft from New Delhi is expected to land at around 3.55 pm after which he is scheduled to reach Sriharikota by a helicopter following a brief stopover.
Four helicopters have been stationed here for use by the Prime Minister and his entourage, police said.
The indigenous PSLV-C23 rocket, carrying satellites of France, Germany, Canada and Singapore, will be launched from Satish Dhawan Space Centre (SHAR) in Sriharikota.
The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday.
Five persons were killed and ten others injured after an explosion occurred at the Alang ship breaking yard in Bhavnagar district in Gujarat.
The blast was triggered by a gas leak at plot no 140, where ship breaking working was in progress.
The injured labourers have been shifted to a hospital.
The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday .
The fire in the incident had also hit nearby houses, shops and coconut plantations.
GAIL stock price
On June 27, 2014, GAIL India closed at Rs 456.10, down Rs 3.65, or 0.79 percent. The 52-week high of the share was Rs 469.55 and the 52-week low was Rs 273.00.
The company's trailing 12-month (TTM) EPS was at Rs 34.49 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 13.22. The latest book value of the company is Rs 225.49 per share. At current value, the price-to-book value of the company is 2.02.
There was a formal meeting that took place between the Secretary of Corporate Affairs and the Additional Secretary of Corporate Affairs with members of the Confederation of Indian Industry (CII) and company law experts in Delhi.
The report on the Companies Act 2013 review is likely to be finalized on Monday and the suggestions on the same will be put up for consultation post that, say sources in the Corporate Affairs Ministry.
There was a formal meeting that took place between the Secretary of Corporate Affairs and the Additional Secretary of Corporate Affairs with members of the Confederation of Indian Industry (CII) and company law experts in Delhi.
Also read: Govt proposes relaxing Companies Act for private firms
In view of the representation that they had submitted within a period of 10 days, the Ministry of Corporate Affairs (MCA) has already started work on notifying and issuing certain draft clarifications and by Monday it is expected that the formal draft report is going to be ready.
The report is going to be put up for consultation following which we are going to be seeing changes being introduced to the Companies Act of 2013 in three phases- the first could be in the form of clarification; the other in terms of amendments and the third then depending upon the requirements of the industry.
There is also going to be a clarification issued by the MCA as far as the various certifications are required by directors under the New Companies Act which includes certification for fraud. It also includes certification that proper measures were taken by the company to avoid any kind of misuse the directors have been seeking clarity on the scope of the applicability of the companies act and that is something that is likely in the days to come
If you thought Robert Vadra was the only real estate wizard in the Gandhi family, think again. Mom-in-law and bro-in-law Sonia Gandhi and Rahul can also teach the Damaad a thing or two on profitable realty moves.
The facts of the case are simple – as previous stories by Firstpost in 2012 show. The Congress party lent Rs 90 crore to Associated Journals Ltd (AJL), a defunct media company that once published National Herald, which then got taken over by Young Indian, a non-profit company under section 25 of the Companies Act owned largely by Sonia Gandhi and Rahul for Rs 50 lakh. In the process, the loan given to Associated Journals became a loan to Young Indian, and the latter got full control over Associated Journals and all its assets.
But here's the interesting bit that will have Robert Vadra gnashing his teeth: Associated Journals owns real estate valued at over Rs 1,600 crore, including Delhi's Herald House on Bahadur Shah Zafar Marg.
In essence, with just Rs 50 lakh of their own, a private section 25 non-profit controlled by mother and son now owns property worth Rs 1,600 crore. Or so it is alleged. Maverick politician Subramanian Swamy, who filed the complaint against Sonia and Rahul, estimates their value at over Rs 2,000 crore now.
With very little money of his own Robert Vadra managed to make crores from properties in Gurgaon and Rajasthan (read here , here and here ). His in-laws appear to have done just that too.
So it is not surprise that metropolitan magistrate Gomati Manocha issued a summons to Sonia and Rahul to turn up on 7 August to answer charges of "cheating" and "misappropriation of property". As noted in this Firstpost report today (27 June), the magistrate observed that "Complainant has established a prima facie case against the accused under section 403 (dishonest misappropriation of property, 406 (criminal breach of trust) and 420 (cheating) read with section 120B (criminal conspiracy) of IPC... Hence, let the accused Sonia Gandhi, Rahul Gandhi, Moti Lal Vohra, Oscar Fernandes, Suman Dubey and Sam Pitroda be summoned for August 7, 2014. Let the Young Indian be summoned through its authorised representative for the same date."
This is a political disaster for the Congress, even though it is likely to allege political vendetta on the part of the ruling BJP.
It is not going to be easy for the dynastic duo to wriggle out of this one, for the facts clearly show that Sonia and Rahul owned 3,800 shares - 1,900 each - out of the issued capital of 5,000 shares of Young Indian – at least at the time the controversy broke cover in 2011-12. Motilal Vora, Congress Treasurer, and Oscar Fernandes, owned 600 shares each of the remaining capital of Young Indian. Why should Congress party office-bearers own what should be a party asset created through a loan given by the party? The impropriety - to the extent it was one - of Sonia and Rahul applies equally to Vora and Fernandes, unless there is some other explanation we haven't heard of as yet.
According to a story by Raman Kirpal for Firstpost in November 2012, once Swamy made his allegations, Congress General Secretary Janardhan Dwivedi jumped in to claim that the party had lent Rs 90 crore to Associated Journals Ltd (AJL) "to enable AJL to pay off its liabilities and revive its defunct newspapers, including National Herald and Qaumi Awaaz." He claimed the money was used to pay off employees of Associated Journals who lost their jobs when the publications had closed down. "We are proud that not only the salary dues of these 700 employees were paid off but even the VRS was given with all the benefits to those who opted for it and their provident funds were also paid."
Kirpal noted at that time : "The evidence on record, however, suggests that the money could not really have gone to pay workers' dues, or even to revive the newspapers. The money was simply given indirectly to Young Indian, the section 25 (non-profit) company 76 percent owned by Sonia and son, to enable them to take over Associated Journals ( as Firstpost noted )."
"This how it happened. Once the loan was given, Motilal Vora, AICC Treasurer and one of the three directors of Associated Journals, got it converted to equity. The loan then went into Young Indian's books. Seeking the board of directors' approval for issuance of 9.02 crore shares to Young Indian, Motilal Vora said: '9,02,16,898 equity shares of Rs 10 each be allotted to Young Indian in consideration of the extinguishment of the amount of Rs 90,21,68,980 due to Young Indian under loan facility available by the company from All India Congress Committee which loan facility and all the benefits thereunder was subsequently transferred by the All India Congress Committee in favour of Young Indian which was approved by the board in the board meeting held on 21.12.2010 and by the shareholders by a special resolution in the extraordinary general meeting of the members held on 21.01.2011.'''
"Young Indian obliged and readily took over the loan of Rs 90 crore from Associated Journals in order to acquire it. This money is unlikely to have been used to pay the dues to employees of National Herald and Qaumi Awaaz. Reason: their dues were largely settled much earlier."
The simple point is this: Congress party funds were used to transfer a property worth possibly a couple of thousand crore to a private entity controlled by Sonia and Rahul – and their trusted lieutenants.
Vadra will be wondering why he didn't think of that.
The writer is editor-in-chief, digital and publishing, Network18 Group
Public governance was one the key issues around which the recently concluded parliamentary election was fought and rightly so because cross-country empirical research suggests that quality of governance has a strong correlation with economic growth and also the overall well-being of the people.
The PMES is a system to both "evaluate" and "monitor" the performance of government ministries/departments by comparing their actual achievements against predetermined annual targets. A performance agreement is the most common accountability mechanism adopted by countries globally to improve quality, transparency, and effectiveness of public governance. Along with introducing the PMES, the government of India also set up a Performance Management Division (PMD) within the Cabinet Secretariat to introduce, execute and supervise the PMES.
At the core of the PMES is a result framework document (RFD), which is prepared at the beginning of the fiscal year by each ministry/department in consultation with an ad-hoc task force which consists of outside experts. The RFD contains the objectives, priorities and deliverables of each ministry/department for that year. It includes financial, physical, quantitative, qualitative, static efficiency and dynamic efficiency parameters.
Presently, the PMES covers 80 departments and ministries of the union government and around 800 responsibility centres (attached offices/subordinate offices/ autonomous organisations). Many state governments have also come forward and implemented the PMES. As at end February 2014, 13 Indian states had adopted PMES and it is currently at various levels of implementation in each of these sates. Seven other states have shown interest in implementing PMES.
Considering that the overall objectives of the PMES are in sync with the new government's focus on 'minimum government and maximum governance' and also in line with international best practices, Ind-Ra expects the new government to not only continue with the existing PMES but also to improve and strengthen it.
Ind-Ra believes that the PMES needs to be publicised extensively so that stake holders can be made aware of this effort. In a bid to create transparency in governance and make people believe in PMES, the latest performance evaluation reports along with the RFD documents of various ministries/departments should be uploaded on the PMD website. Moreover, to improve the effectiveness of PMES, Ind-Ra would suggest – (a) inclusion of stakeholders' suggestions/feedback at the time of RFD formulation/assessment of ministries/departments, and (b) a central law on the lines of the 'Right to Public Services Act' introduced in Bihar in April 2011.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
We kicked off the July series today and in fact volumes were on the lower side. However that is on expected lines given that it is the first day of the series.
The Nifty ended more or less flattish while we did see some bit of outperformance on the midcap space itself.
Friday: 10.30 pm, Saturday: 11.30 am
Sunday: 9:30am & 11.00pm
Published on Thu, Jun 26,2014 | 18:04, Updated at Thu, Jun 26 at 18:04Source : Moneycontrol.com | Watch Video : 
Former Solicitor General of India and senior lawyer Gopal Subramanium on Wednesday withdrew his candidature for his appointment as a Supreme Court judge. In an Interview with CNN-IBN's Bhupendra Chaubey, Subramamium said that he did so because the present government has apprehensions that he will not toe their line.
For More, Please watch the full interview…
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.
The deadline to implement the Act was on July 5, but the inability of some states to implement it has delayed its roll out, Ram Vilas Paswan told reporters on Thursday.
India has pushed back by three months the roll out of the Food Security Act that mandates selling subsidised wheat and rice to two out of three of its 1.2 billion people, the food minister said, in a blow to the plan worth nearly USD 20 billion.
The deadline to implement the Act was on July 5, but the inability of some states to implement it has delayed its roll out, Ram Vilas Paswan told reporters on Thursday.
The Act was pushed through last year by the previous government led by the Congress party. The ruling Bharatiya Janata Party of new Prime Minister Narendra Modi had called the welfare scheme too narrow to tackle the widespread malnutrition among India's millions of poor.
The loan portfolio of India's microfinance sector is set to grow at a compounded annual rate of 35 per cent, to reach Rs 450 billion by end-March 2016, according to a report by rating agency CRISIL.
Unlike in the period prior to the Andhra Pradesh crisis, the microfinance institutions' (MFIs') current growth phase is more resilient, supported by stronger building blocks and a rebound in stakeholder confidence. But to sustain the current pace of growth, MFIs will have to raise equity. To do so, they will need to address challenges associated with low promoter shareholdings and a near-term decline in profitability, the CRISIL report says.
Says Mr Pawan Agrawal, Senior Director, CRISIL Ratings, "The sector is far more resilient today than it was in the past. Greater clarity from the Reserve Bank of India's guidelines, deeper penetration of credit bureaux, and increasing use of technology to improve collections are distinctive features of the current phase of growth in India's MFI sector".
From the CRISIL report:
In addition, improved geographical spread of assets has raised stakeholder confidence and improved funding availability. No state now accounts for more than 20 per cent of loans from the MFIs, down from 35 per cent at the time of the crisis. Over the past three years, MFIs have raised Rs.20 billion as equity, and Rs.240 billion as additional funds from banks. Notably, bank funding to the MFIs is eligible for priority sector lending status. However, the MFIs' dependence on bank loans, specifically from the top five banks, is expected to remain high over the medium term.
The MFIs are adequately capitalised for their current scale of operations. However, three years of rapid growth have skewed the sector's gearing to 5.4 times, from around 3 times in the past. A CRISIL analysis indicates that the MFIs need to raise equity of at least Rs.18 billion over the next two years to maintain growth momentum and gearing at current levels.
For this, the sector needs to address the following two elements: First is promoter shareholding, which has declined significantly following repeated infusions of capital. For the 10 leading MFIs, the promoter stakes are as low as 20 per cent. Says Ms Rupali Shanker, Director, CRISIL Ratings, "Low promoter stakes, and the absence of a dominant shareholder could disrupt strategic direction and decision making, and constrain the quantum of equity that MFIs raise".
Second is a potential reduction in investor appetite because profitability of the large players is set to decline by around 30 basis points annually over the next two years. With interest margin capped at 10 per cent from April 2014, interest spreads could fall by up to 120 basis points. CRISIL expects MFIs to offset this partially by increasing their fee incomes especially, from banking correspondent activities, and by cranking up scale of operations and operating efficiencies.
Friday: 10.30 pm, Saturday: 11.30 am
Sunday: 9:30am & 11.00pm
Published on Thu, Jun 26,2014 | 18:13, Updated at Thu, Jun 26 at 18:14Source : Moneycontrol.com
Following closely on the footsteps of the recent observations1 by U.S. Securities and Exchange Commission (SEC) that there are several disconnects between "what [general partners] think their [limited partners] know and what LPs actually know", the Indian Securities Exchange Board of India has issued a circular that consolidates guidelines on disclosures and reporting that alternative investment funds ("AIFs") have to make. The Circular also provides certain clarifications on the interpretation of the provisions of the AIF Regulations. For more, please read the attached report by Nishith Desai Associates.
Disclaimer: The information/opinions expressed in this report/newsletter are those of the author. This website has not verified the accuracy of the claims made in the report/newsletter, nor does it agree or disagree with, or endorse any information/opinions contained therein.
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.
CARE Ratings has come out with its report on Retail Asset Securitization market in FY14. The demand for priority sector loans continued to be the driving force of the retail asset securitization market in India, but the recent RBI circular may reduce demand for priority sector assets going forward.
Indian retail asset securitization market rated volumes have decreased marginally by around 6% to Rs. 283 bn1 in FY14 as against Rs. 303 bn in FY13. In FY14, although there was greater clarity with the introduction of a new tax regime in Union Budget, the market started moving towards 'direct assignment' route due to a combination of factors making it an attractive proposition for both the originators as well as the investors. The demand for priority sector loans continued to be the driving force of the retail asset securitization market in India, but the recent RBI circular may reduce demand for priority sector assets going forward.
ABS continues to dominate: Asset Backed Securities (ABS) volumes stood at Rs. 240.3 bn in FY14. The share of ABS in total market volume stood at 84.9% in FY14. CV/CE/PV continued to be dominant asset classes, representing around 74% of total ABS issuances in FY14.
Direct assignment route finds favor with investors again: Securitization market was primarily driven by direct assignments till FY12. But, after the introduction of new RBI Guidelines in FY13 which stipulated that no credit enhancement may be provided for direct assignment transactions, the market started moving towards SPV/PTC route as investors were more comfortable with the safety of credit enhancement provided in the SPV/PTC route vis-Ã -vis a direct assignment. But, it has been observed that direct assignment route has recorded buoyant growth in FY14. Some of the factors contributing to direct assignments regaining favour are:
1. Taxation on PTCs – With the introduction of the new tax regime for PTC transactions, tax on income distributed by securitization trusts which was earlier charged as a part of the investor's income became taxed at the time of distribution, which meant that investors could not adjust any expenses incurred against such income anymore.
2. Low yield of PTCs – Due to high demand for priority sector assets, the PTCs backed by such assets have very low yield compared to similar rated other market instruments. Hence, investors have to bear markto- market losses which affect their profitability.
3. The originators do not have to provide any credit enhancement in direct assignment transactions as per the new guidelines. Hence, they save on the capital requirement for securitised assets. Direct assignment cannot be placed below base rate unlike PTCs. Hence, investors get a higher yield.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Prime Focus stock was buzzing in trade today after the board approved merger of its creative services subsidiary Prime Focus World with Double Negative which is one of the world's foremost visual effects companies. Prime Focus World contributes nearly 65 percent of revenues to Prime Focus.
In a conversation to CNBC-TV18, Namit Malhotra, founder, Prime Focus says the merger of Prime Focus World with Double Negative will create a consolidated group of visual effects services, 2D to 3D conversions and animation services.
Prime Focus will continue to hold 80 percent in the new entity post merger. The company currently holds nearly 94 percent in Prime Focus World.
Below is the transcript of Namit Malhotra's interview with Menaka Doshi, Senthil Chegalvarayan and Varinder Bansal of CNBC-TV18.
Menaka: If you could just take us through the details of the deal first. What exactly are you selling, how and for how much?
A: This is not a sale. This is clearly a merger of our international visual effects business which is traded under the name of Prime Focus World which is a subsidiary of the listed company in India. We are looking at merging our visual effects business with Double Negative which is one the worlds foremost visual effects companies to create what will be a consolidated group of visual effects services, 2D to 3D conversions and animation services. That would form part of this new enlarged entity.
Senthil: What percentage of revenues comes from Prime Focus World?
A: Almost 65 percent.
Menaka: What are you getting in exchange for merging this business, cash, shares or what?
A: This is going to be a stock swap. There will be a consideration paid to the current holders of Double Negative and their stock will then be merged into Prime Focus World.
Q: What exactly is the merger ratio, who will be managing that combined company? Right now it is not clear on whether they are buying out your business and merging it and your using your arm to sort of takeover their business?
A: The visual effects business that we own in the international sector is being merged. That currently trades as part of our global operations, so there is no sale from Prime Focus's standpoint. It will continue to be almost 80-85 percent subsidiary of the parent company which is listed here. There will be cash and stock consideration paid to the current holders of Double Negative.
The new trading name will be traded under Double Negative as part of our international operations and that is basically the construct of this deal. It is not like we are selling out or exiting that business in any shape or form.
Q: Will the revenue of the merged company now flow back into Prime Focus, the Indian listed company?
A: Yes.
Varinder: How much are you valuing the company at Prime Focus World, in this transaction?
A: Prime Focus World has bench mark valuation from last year when we have done financing with Macquarie Capital at USD 253 million and that continues to be consistent with the current deal.
Varinder: What could be the share holding pattern of Prime Focus World post the merger with Double Negative?
A: We would continue to hold about 80 percent of company.
Varinder: Down from 94 percent?
A: Yes.
Senthil: Is there any cash outflow from Prime Focus World?
A: Yes, there will be a cash and stock consideration that has been made as part of the overall financing and the details of which we are under firm negotiations and so, we will be able to disclose that shortly.
Menaka: What are the combined valuations? What will be the burden on Prime Focus World in the process of merging this arm with Double Negative?
A: This merger is being contemplated on the basis of new equity and debt being financed across all our current investors and we are literally at the last stage of closing.
Menaka: New equity and debt being financed all our investors, can you just simplify that?
A: Our current investors such as Standard Chartered Private Equity and other stakeholders would be putting in additional equity into this overall transaction and we would be raising some amount of debt as part of this overall financing.
Menaka: What would putting in additional equity into this overall transaction exactly mean?
A: Into Prime Focus World, into the subsidiary.
Menaka: So they are likely to put in more money, invest more money. Is that what you are looking at?
A: Yes, there will be some amount of cash, stock and earn out structure over the course of next few years.
Sanjay Matai
Public issues of Tax-Free bonds came to an end with the end of Financial Year 2013-14. And due to the delayed budget, fresh issues of such bonds for the FY 2014-15 if any, are unlikely to hit the markets before Nov/Dec 2014.
So what should the investors with surplus money, and interested in Tax-Free bonds, do during this inordinately long gap?
Simple, they can buy them from the secondary market. Equity shares are not the only securities listed and traded on the stock exchanges; bonds and debentures too can be bought and sold on the NSE and BSE.
You must, however, note the following points before hitting the 'buy' button.
1. Liquidity of such bonds is quite limited and poor. Therefore, you must be reasonably sure that you won't need this money for the next 8-10 years, till these bonds mature.
2. Since the liquidity is poor, there could be a significant difference between the bid and offer prices. As such, be extremely careful of the price that you pay for such bonds. Too high a price would directly and sharply curtail your returns.
3. Look for issues with large corpus sizes as these are likely to provide better liquidity than small-sized issues.
4. When buying from secondary markets you don't have to look at the coupon rate. Rather you have to consider the YTM (i.e. Yield to Maturity). Currently the average yields are at around 8% per annum.
5. Given these yields, such bonds make sense for investors in the higher tax brackets only. Other investors, in the nil / low tax brackets, could earn better post-tax returns from their all-time favourite bank FDs.
6. Tax-Free bonds issued in FY 2012-13 had a step-down clause, wherein the investors buying these bonds from the secondary market would get 0.5% lower interest rate than the original allottees in the public offer. Issues in FY 2013-14 (and earlier in 2011-12) had no such step-down clause. So make sure that you buy the bonds issued in 2013-14 / 2011-12. And if buying the 2012-13 bonds, ensure that the price suitably compensates for the lower interest rate.
7. You will need demat and broking accounts to buy bonds from the secondary market, which was not a necessity when buying physical bonds during the public offer.
8. Important: Only the interest earning is tax free. But, if you buy and sell in the secondary market, the gains would be taxed as capital gains. Short-term gains would be taxed as per your slab rate; while long-term capital gains will attract 10% tax (without indexation).
9. Normally, credit rating of the bonds matter a lot. However, since nearly all issuers of Tax-Free bonds are Public Sector Companies, the risk of default is pretty low. We can expect the Govt. of India to pitch in, should there be any financial problems with these companies.
10. If the inflation cools down and the interest rates soften, you would also benefit from the capital appreciation in the bond prices.
So, lack of public offers, does not mean lack of investment opportunities.
Sanjay Matai is a personal finance advisor, author and blogger.
Karvy Commodities has come out with its report on metals. The research firm believes that the commodity might decline further today so one can sell at higher levels.
Base metals traded mostly mixed to bullish on last trading session except nickel which has been moving into a bearish correction. On average prices ended on a positive note while this morning most of the metals are trading marginally lower. However, we believe as the day progresses possibly the select commodities may trade positive for the day. Among the base metals we believe aluminum which has been into a bullish trend backed by lower inventory and higher demand may continue to trade higher, lead looks to turn positive as there has been slight change in the global stock performance at LME and prices were undervalued for last few weeks so buying would apt for the day. However, we believe zinc might show a marginal decline in the prices while the overall scenario holds bullish.
For today we are avoiding to buy the metal however short term trend remains bearish. Talking off copper we believe some more buying potential may be noticed in the market so we suggest buying the red metal for intraday while in the US session the gains might fade due to expected negative GDP number from the US. Lastly, nickel prices have been declining for the past few sessions and that is basically due to rise in the stocks at LME at 0.305 million tons. We believe the commodity might decline further today so we suggest selling from higher levels.
Economic data- US GDP, durable goods order
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The banking industry, vital to India's growth, has suffered from low credit offtake and worsening asset quality as slowing economic growth took a toll. Here is an analysis by CRISIL.
- Aggregate bank credit growth slowed to 12.8 percent y-o-y as on May 30, 2014, from 14.2 percent as on May 31, 2013 due to sluggish investment demand, and increased risk aversion due to the deterioration in asset quaility of public sector banks (PSBs). Growth in bank credit to industries such as mining, textiles, petroleum, pharmaceuticals, engineering and construction has decelerated over the past one year.
- The pace of new loan sanctions has also decreased significantly over the past couple of years as corporates have postponed their capacity expansion plans in the wake of the overall slowdown in the economy and continued global uncertainty.
- CRISIL Research expects credit growth to improve to 16-18 percent in 2014-15, especially in the second half, given the decisive mandate in the recently concluded elections.
- On an aggregate basis, deposits grew by 13.8 percent y-o-y as on May 30, 2014, compared with 13.5 percent y-o-y as on May 31, 2013, led by a surge in foreign currency non-resident (FCNR) deposits. Banks garnered almost USD 26 billion (Rs 1.5-1.7 trillion) during September-November 2013 under FCNR deposits.
- Overall deposits are forecast to grow by around 15-16 percent in 2014-15, a tad higher than in 2013-14.
- Net interest margins will improve by a marginal 5-10 basis points in 2014-15 with improved credit offtake and re-pricing of deposits raised at high interest rates in previous years.
- Aggregate GNPAs of all banks rose to about 4 percent as of March 2014 from 3.3 percent as of March 2013. The public sector banks (PSBs) had very high GNPA of around 4.2 percent, while the GNPA of private sector banks was around 1.7 percent in 2013-14.
- CRISIL Research expects banks' GNPAs to remain at similar levels till March 2015 due to slippages from loans restructured in 2012-13, and continued stress in the infrastructure sector (especially power) and construction segment. Weak assets which includes reported GNPA + 30 percent of outstanding restructured advances (excluding state power utilities) + 75 percent of investments in security receipts are expected to remain in the range of 5.5 to 5.7 percent, a level similar to 2013-14.
A slowdown in virtually all cyclical sectors meant order books for the capital goods industry as a whole de-grew in FY14. As economic growth is expected to pick up, will it mean reviving fortunes for the industry? Here are CRISIL's views.
A slowdown in virtually all cyclical sectors meant order books for the capital goods industry as a whole de-grew in FY14. As economic growth is expected to pick up, will it mean reviving fortunes for the industry? Here are CRISIL's views:
- The capital goods industry has experienced significant headwinds in the past few years due to the slowdown in the investment cycle caused by muted economic growth. Project execution has also been sluggish on account of delays in government clearances, land acquisition and cash flow constraints in end-use sectors.
- The order book of capital goods (linked to power sector) companies fell by about 9 percent (y-o-y) in 2013-14. Power sector investments slowed on account of fuel availability issues and weak financial health of state distribution companies, which adversely hit segments such as boiler turbine generator (BTG) as well as transformers and switchgears. Road sector investments have also slowed due to delays in government approvals, muted traffic growth and funding constraints of developers, which has put downward pressure on construction and earthmoving equipment.
- Revenues fell by 10 percent (y-o-y) in 2013-14 due to a lower order book coupled with slowdown in execution.
- Competitive intensity in the capital goods space also remained high because of low capacity utilisation levels and aggressive participation from Chinese and Korean players.
- Operating margins declined by about 400 bps (y-o-y) to 9 percent in 2013-14 due to escalation in project costs, low capacity utilisation and write-off of receivables.
- Net margins declined by 250 bps (y-o-y) to 5.5 percent on account of low operating profits and high interest costs. Short-term borrowings increased owing to delayed payments and capital invested in stalled projects. However, this was partially offset by higher other income and lower tax liability.
- In 2014-15, we expect the capital goods sector's revenues to stabilise led by expansion of the industry's footprint to international markets such as Africa and the Middle East.
- However, the growth in the domestic market is expected to remain under pressure as infrastructure investments are expected to see an uptick only in the second half of the fiscal. In terms of profitability, CRISIL Research expects the downward pressure to continue with weak demand and high competition. However, over the long term, CRISIL Research expects growth to be robust on the back of the governnment thrust on infrastructure and improving electricity access.
Wholesale sugar prices rose by upto Rs 2 per kg in the national capital and taking cues from the wholesale market, retail prices also increased by Rs 2 per kg to Rs 39-40 per kg.
Sugar prices today further rose by up to Rs 2 per kg to Rs 33.40 at the wholesale market in the national capital following a slew of measures by the government including hike in import duty to bail out the industry.
Taking cues from the wholesale market, retail prices also increased by Rs 2 per kg to Rs 39-40 per kg. Traders said that prices may further go up in the coming days as millers are not releasing the stock in anticipation of better returns.
Also read: Sentiment to drive sugar prices from now: Balrampur Chini
There is more than 60 percent drop in arrivals to 5,000 bags of 100 kgs in the wholesale market today as against 13,000 bags yesterday, they added. Traders mentioned that prices are on the rise alsobecause of increase in summer demand for the sweetener by ice-cream and soft drink makers.
In the mill gate section, Bulandhshar traded Rs 2 higher at Rs 33.40 per kg, followed by Sakoti by Rs 1.45 to Rs 32.70 per kg, Simbholi by Rs 1.15 to Rs 33.40 per kg. In the spot market segment, M-30 rose by Rs 1.20/1.40 to Rs 34.50-36.00 per kg and S-30 moved up by Re 1/Rs 1.20 to Rs 34.00-35.50 per kg.
Mill delivery M-30 edged higher by 70 paise to Rs 32.30-33.70 per kg and S-30 by Re 0.60-Rs 1.10 to Rs 32.00-33.50 per kg. In order to bail out sugar mills that are unable to pay Rs 11,000 crore dues to sugarcane growers, the government had yesterday decided to hike import duty on sugar to 40 per cent from the current 15 per cent, while it extended export subsidy of Rs 3,300 per tonne till September this year.
That apart, the government decided to provide additional interest-free loans of up to Rs 4,400 crore especially for clearing cane arrears. Yesterday, the wholesale price of sugar rose by Rs 60 paise per kg following the government's decisions.
India is the world's second largest sugar producer but the largest consumer.
SLIDESHOW
Tue, Jun 24, 2014 at 18:27
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"The management of the bank is still cautious in its growth strategy over the next couple of quarters at least. Asset quality should remain under control and we believe that despite having reasonable exposure to the infrastructure segment the bank has done well in keeping its stressed assets pool at 3.6%. As the investment cycle and money flow within the economy improves, the bank can see a reasonable amount of deflation in its stressed assets pool. However, this is unlikely to be immediate and can take some time to pan out. The bank in our view can be a significant beneficiary of softening of bulk deposit rates as bulk deposit forms 22% of total domestic deposits and the bank is not averse to raising this proportion moderately if it is beneficial and warranted."
"The bank continues to maintain its balance sheet growth targets and believes that it would take some time before the high growth phase is resumed at the bank. An improvement in loan growth is expected mostly towards the end of FY15. We expect that the bank's overall loan book to grow at CAGR of 21% during FY14-16E."
"The bank expects the traction in retail and SME loans to continue and to grow at faster than overall loan growth. The bank's proportion of retail loans had over the past 2 years shown a significant improvement forming 32% of loan book in March 2014 from 22% in March 2012. Going forward the growth in retail portfolio would be driven by both; increasing the branches offering retail products as well as introducing newer retail product offerings. While 71% of its branches offer retail products, all branches do not offer the entire product suit and there is a scope of expanding the portfolio from the current branches itself. Over the next couple of years the proportion of SME and retail loans will continue to form the major pie of the entire loan book."
"While the bank has been able to maintain its average CASA since the past 12 quarters now, improvement in productivity at the new branches and the existing branches which are in the high CASA catchment areas will continue to drive the CASA growth. The management also plans to increase the salary account additions. Branch network is expected to reach 2650 + by March 2015 as the bank plans to add another 250 branches this year."
"The bank has always been conservative in guiding its core NIM trajectory which it places at 3.5%+. In our view the banks reported NIM for FY15 is likely to remain stable YoY at around 3.8% and any pressure is likely to be marginal and temporary."
"Asset quality is likely to remain stable and the stressed assets accretion is likely to plateau before its starts to trend down expectedly towards the end of FY15. While the new government is expected to improve the investment cycle, it could take some time for the improvement to reflect on the ground. Some companies which were in need of capital would be able to raise equity as the conditions improve, and the resultant improvement in the stressed assets at the bank can become noticeable after some lag."
"As at March 2014, 47% of the bank's exposure to the power generation sector comprised of operational projects. While there have been cases of extension of Commissioning Dates for some projects, the management expects almost 65% of the power sector exposure to comprise of operating assets by March 2015. The bank does not foresee any major asset quality stress in this portfolio. We believe that as the proportion of operating assets moves towards higher levels, the comfort level shall rise giving support to the valuations."
Valuation: "Current valuations of 2.1x FY15E ABVPS forecasts still provides reasonable room for further upsides as the bank is well placed to capitalize on the change in the economic cycle. We maintain our preference for Axis Bank in our top picks with a target price of Rs 2264 based on PABR of 2.5x on FY15 ABVPS forecasts", says Dolat Capital research report.
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Chana may remain under pressure for the near - term but eventually it may gain support from September onwards due to upcoming festivities. Therefore, we recommend accumulating long positions from lower levels, says Karvy Commodities.
In the month of February when we had come out with our seasonal report on Chana the price had declined by 40% while today in June the losses have extended to 50% and trading at Rs. 2800. Until today the physical spot prices are incessantly trading well below the minimum support price pegged by the government. While we look at the spot prices of the major physical market of chana we have noticed that the kantewala variety chana which is mostly traded across Madhya Pradesh markets declined drastically by 16 % to Rs. 2700 per quintal from last year. Such price fall was basically driven by higher carry forward stocks and lower demand. Even the crop quality was hampered this year owing to rains and hailstorms during its maturity stage. In the similar lines, the spot prices at Delhi and Akola market also fell by 13 % at Rs. 2790 and Rs. 2600 per quintal from last year. Generally the Rajasthan Chana prices which remain in premium over other markets had also declined and traded near other market prices. As of today i.e. 20th June Bikaner chana prices are quoted at Rs. 2600 to Rs. 2650 per quintal. In this regard, farmers' were lenient in selling their produce to government at MSP to realize better returns.
Chana made a historical high of more than Rs 4800 in August 2012 and since then, prices have been incessantly declining and as of 20th June, 2014, prices are trading near Rs 2800 per quintal, registering a negative growth of around 50 %. The major reason for the price fall is the sheer abundance of supply until 2013-14. But in 2013-2014, production declined and quality deteriorated owing to the vagaries of weather. The consumption is estimated to decline by 20 % to 10.16 million tons from the previous year. According to our study and as stated below in the commodity balance sheet, we believe that the demand and supply may remain near equilibrium this year. However, if any unprecedented demand arises than prices may likely to track the bull rally.
Another interesting fact which we would like to bring to notice is that in the last four years, chana's minimum support price (MSP) has been hiked from Rs 1760 to Rs 3100 per quintal till 2013-2014. Now, the query is whether Government will fix the minimum support price (MSP) of chana lower than previous year as we have mentioned in the beginning of our report that since 10 months spot prices were trading below MSP. According to our view, if consumption exceeds production then Government may take measures to encourage the farmers to increase the production so in that case we don't expect that Government should lower the MSP than existing levels as there is a likely possibility of consumption exceeding the production levels. Meanwhile, we expect that prices may also gain support in the coming months especially from September onwards due to upcoming festivities. Besan which is a derivative of Chana is used to prepare sweets and spicy food items and during the festival season consumption of besan generally increases due to which the crushing activities of chana also increases thereby supports the chana prices.
We believe that Chana may remain under pressure for the near - term but eventually it may gain support from September onwards due to upcoming festivities. Therefore, we recommend accumulating long positions from lower levels.
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Among the wish-list that the telecom industry has from finance minister Arun Jaitley is a proposal to increase depreciation that could be claimed for batteries used for commercial purposes.
Among the wish-list that the telecom industry has from finance minister Arun Jaitley is a proposal to increase depreciation that could be claimed for batteries used for commercial purposes.
A note prepared by industry body Federation of Indian Chambers of Commerce and Industry (FICCI) says that batteries used in telecom infrastructure get clubbed in the plant and machinery category along with towers and shelters and are eligible for 15 percent depreciation as per rules.
"However, batteries have an economic life of approximately three years and after which they need to be compulsorily replaced. As a result these companies are able to claim only 38.6 percent depreciation (15 percent tax on written down value method for three years)," it says, calling for allowing depreciation to be charged at 65 percent to allow for cost recovery.
The industry body also called for tax benefits under section 35AD of the Act by providing investment linked incentives for tower infrastructure service providers (TISPs). "This will lower the cost of services offered by TISPs and would thus help in achieving the government's goal of providing affordable telephony."
Further, the industry wants no tax to be deducted at sources for payments of service fee made by telecom operators to TISPs.
"The TISPs provide 24x7 power supply, air-conditioning and access to tower sites on shared basis to multiple telecom operators in return for service income. However, the payment for such fees by the telecom operators to the telecom infrastructure service providers has not been specifically covered under the existing TDS provisions and thus creating ambiguity on its applicability. As a result, tax is deducted at source by the telecom operators at a higher rate of 10 percent under section 194-I of the Act to avoid penal provisions under the Act in case of noncompliance of stringent provisions of TDS and resultant disallowance of expenditure."
Shares of Mahindra CIE Automotive (earlier known as 'Mahindra Forgings) shot up 20 percent on Monday after the company, on June 20, said its shareholders approved merger of five subsidiaries with itself.
Shares of Mahindra CIE Automotive (earlier known as 'Mahindra Forgings) shot up 20 percent on Monday after the company, on June 20, said its shareholders approved merger of five subsidiaries with itself.
"Public shareholders by voting through postal ballot and e-voting approved the scheme of amalgamation between Mahindra Hinoday Industries (MHIL), Mahindra Ugine Steel Company (MUSCO), Mahindra Gears International (MGIL), Mahindra Investments India (MIIPL) & Participaciones Internacionales Autometal Tres SL (PIA 3) and the company," said the company in its filing.
It further says shareholders also approved the scheme of amalgamation between Mahindra Composites and the company.
Participaciones Internacionales Autometal Dos SL holds 79.09 percent equity stake in Mahindra CIE Automotive and 61.74 percent in Mahindra Composites .
Shares of Mahindra CIE Automotive closed at Rs 143.90, up 19.97 percent while Mahindra Ugine Steel Company rose 20 percent to Rs 359.55 and Mahindra Composites gained 5 percent at Rs 94.55 on the BSE.
Sukanya Kumar
RetailLending.com
Many people jump at the first opportunity to pay off their mortgage, and while it may seem like a great financial relief, a closer look can help us uncover the advantages of holding on to a mortgage until the end of its tenure.
There may be a belief that paying off a mortgage delivers peace of mind, financial freedom and a sense of financial security, but this belief may be short-lived once you compare it to the benefits of holding on to your mortgage. Many of my clients start off with this view, and it's surprising how many of them don't consider the benefits of not paying off your mortgage early. For a person unaware, it is an astonishing eye opener as its counter intuitive to their thinking. Let take a closer look at these benefits.
#1 It's the cheapest loan available in India
With the current interest rate levels of home loans, it is certainly the cheapest form of credit available in India. Other financial lending products such as personal loans, educational loan, credit cards and business loans are significantly more expensive than home loan products. So this begs the question, why pay off the cheapest loan? Rather, it's better to pay off the other types of loans and hang on to your mortgage.
#2 Maximise on the retirement premium
Over the years with increase in inflation and cost of living, it is scary, at the least, to imagine living without a regular inflow of funds post retirement. Understanding this fear, retirement products to secure your future are available form banks today. In case of extra funds, it would make logical sense to invest this surplus into retirement products allowing one to have access to funds post retirement. It is advisable that people invest into these products rather than using them to repay the mortgage.
#3 It's a tax saving investment
Sections in the Income Tax Act, namely 24(b) and 80EE, allow for significant deductions on the interest payable on a housing loan. These deductions are major advantages of not paying off your mortgage early. Why pay it off and lose the tax benefit?
# 4 Saving for emergencies
We live in a world of uncertainty, and the need for surplus funds may arise at any time. It is always a good idea to keep a contingency fund for unplanned medical, repair, and accidental expenses that may just pop up their ugly head every once in a while. Surplus funds should be used as a contingency corpus for these types of expenses that none of us can predict.
# 5 Enjoying your retirement
After working for most of your life, we all deserve to enjoy our post-retirement phase. Saving for traveling the world, spoiling your grand kids, and just plain enjoying your life is a great idea. Most people spend 25-30% of their lifetime's earning post-retirement, why spend it in a cash-poor and miserable way? Invest into enjoying this phase of your life from now, and avoid using free funds in foreclosing your mortgage.
After analyzing the benefits, it's easy to see why you should resist foreclosing your home loan sooner than required. There are much better ways to use your surplus funds, and these methods are bound to give you true financial security, peace of mind and happiness. Maybe counter intuitive, but definitely the smarter move!
Arnav Pandya
Salaried individuals often find themselves in a bind because some of their financial details have changed and they find that the tax that is deducted each month is actually higher than what it should be. One of the ways in which they can tackle the position is through the use of the investment declaration form as this would allow them to ensure that they have mentioned the right points to their employer who would take this into consideration and hence ensure that a lower amount of tax is actually deducted. Here is a closer look at the issue and what the individual can actually do.
Actual process
There is a certain amount of income that is earned by the employee and this is distributed under various heads. Depending upon the figures here plus the various tax saving investments that would be undertaken by the employee during the year the employer works out the annual tax liability and then ensures that the required amount of tax is deducted each month on the salary that is paid out. Thus there are two main factors that are at play here. One is the income amount and the heads under which this is received while the other is the investments that are actually done by the individual which will lead to the benefit of a lower tax for them.
Changes
The ideal situation for the individual taxpayer would be that the details of the investments and other processes that they do is available right at the start of the financial year so that these details are provided to the employer in the investment declaration form. This would ensure that the entire figure is considered by the employer right from day one and the maximum possible tax savings are considered in the workings and the action is taken accordingly. However this is not always the case as there might be some steps that happen in the middle of the year which might not have been present earlier. This could be something like a home loan taken after a few months from the start of the financial year so this might not have been present in the earlier workings but would now have to be included because the impact can be quite significant.
Prompt action
Whenever there is any such change that is actually witnessed then the individual should ensure that they transmit these details to their employer. This might require the filling in of the investment declaration form again with the updated details and giving of some other details that would help the employer in ensuring that the right amount of deduction is done on the tax front. The employee should ensure that they consider this aspect and finish this process because there is a need to ensure lower tax deduction and this opportunity should not be missed. If this is not done immediately then there could be a higher tax deduction which they would need to claim later from the tax department as refund.
Need
The need to ensure that there is some action taken on this front is important because this is to ensure that while the issue is still with the employer before the end of the financial year in terms of the amount of the tax deducted at source the right details are considered. If this chance is missed out then there would be a position where the individual would find that they have to take the refund from the government which can only be done when the return is to be filed and hence this will have a long time lag. This would mean that the amount involved during this time would not be recoverable but early action could lead to adjustments in future tax deductions during the year.
In marked contrast to other cities, the dynamics of luxury housing in Mumbai have changed dramatically over the last decade. Delhi, Kolkata and Chennai continue to have location-specific premiums, which have risen consistently. Boat Club Road in Chennai, Jor Baug in Delhi and Ballygunge in Kolkata continue as the most premium areas of these cities, while Cuffe Parade, Marine Drive, Pedder Road and other premium locations in Mumbai have witnessed a slowdown in demand and price appreciation.
In Mumbai, with the CBD shifting to BKC for all practical purposes, even the most attractive parts of the city have not witnessed increased action in terms of sales, relative appreciation and leasing over the last 5-7 years.
With the CBD and even the Diamond Market moving to Bandra Kurla Complex (BKC), there has been a dramatic shift of preferences for luxury housing in Mumbai. South Mumbai residents now show increasing preference for moving to complexes in Mahalaxmi and Jacob Circle, giving up the standalone buildings they have been occupying since security and parking have become a challenge.
The shift towards Worli reflects that a desire to be close to the Sea Link for faster access to BKC is another important market trend. The Bandra-Khar-Santacruz belt and specifically BKC have become the best options for corporate employees who wish to live closer to their workplaces. Diamond traders are also shifting to these areas and to Worli for the same reason.
The Media, Pharma, FMCG and SME sectors are the key residential property drivers in the Andheri-Malad-Goregaon-Powai belt. With HUL, P&G, Glenmark, Sun Pharma and many other larger names shifting their headquarters to the Andheri-Powai belt, we have seen a sudden increase in demand for premium and marquee properties in this market. The wish to reside closer to the airports, highways and Metro stations are the key drivers for this preference.
Denizens of the media world (i.e. television and film artist) prefer living in the Andheri-Malad-Goregaon belt, as these areas are closer to the major studios. With the sudden increase of channels and programs over the last 5-7 years, there is now an unprecedented demand for good premium and marquee properties in this belt.
South Mumbai properties that have perennial demand:
| Building Name | Location | Reason | Indicative Price Points in the Re-sale space | |
| 1 | Samudra Mahal | Worli | Sea Facing/Profile of Occupants | Starting from Rs.1 Lac per square feet |
| 2 | Kalpataru Horizon | Worli | Sea Facing/Profile of Occupants | Starting from Rs. 70,000 per square feet |
| 3 | Godrej Bayview | Worli | Sea Facing/Profile of Occupants | Starting from Rs.75,000 per square feet |
| 4 | Raheja Vivarea | Mahalaxmi | Race Course /Sea Facing / Profile of Occupants | Starting from Rs.60,000 per square feet |
| 5 | Jolly Maker Chambers (Cluster) | Cuffe Parade | Sea Facing / Profile of Occupants | Starting from Rs.65,000 per square feet |
| 6 | Signature Island | BKC | Only Luxury Project inside G Block of BKC & Profile of Occupants | Starting from Rs.55,000 per square feet |
| 7 | Oberoi Woods | Lokhandwala | Preferred by Media world | Starting from Rs.25,000 per square feet |
Mumbai's new alternate luxury locations:
A family living in South Mumbai that wants to upgrade from a 2 BHK to 3 BHK or 4 BHK usually operates with a limited additional budget after selling its existing home. After a prolonged stint in South Mumbai, very few locations provide comparable appeal – or, indeed, comparable options.
Such families will consider options in Mahalaxmi, Parel, Lower Parel and Worli, and tend to be open to locations such as Mazgaon and Byculla as secondary options. The additional investment for exploring these alternatives is usually between Rs. 2-4 crore. Reputed developers like K Raheja Corp., Kalpataru and Runwal have luxury projects in these areas and are actively catering to the demand coming from erstwhile residents of South Mumbai.
South Mumbai residents who cannot stretch their budget to accommodate their new space requirement are looking at Wadala as alternate option. With the arrival of the Eastern Freeway and the Monorail, Wadala has in fact become a hot destination for South Mumbai residents whose children study in Cathedral, G D Somani Memorial and other reputed schools. Currently, Dosti Group's projects are clear leaders in this location, thanks to the superior social infrastructure they provide.
In the CBD area, the BKC belt has surprised most market pundits over the last decade. With the robust development in this prime location of Mumbai, many families from South Mumbai have been able to move into luxury projects there with just marginal budget additions. In the process, they have gained the advantages of additional bedrooms as well as significantly enhanced luxury living experience. The BKC luxury residential market is being serviced by developers like Sunteck, Kalpataru and Hubtown.
'Affordable Luxury' locations:
In a city like Mumbai, the concepts of luxury and affordability tend to be mutually exclusive concepts. Given the ever-escalating shortage of land in the city, coupled with the skyrocketing cost of construction, property price increases and multiple new taxes introduced in the last budget have conspired to push up the consumer cost of buying homes.
The new trend 'affordable luxury' does address the traditional clientele for luxury homes in Mumbai, but applies to local residents of suburban and far-suburban areas who are seeking to upgrade their lifestyles within their current localities. Developers who cater to the demand for affordable luxury are constrained upon to ensure that their offerings meet the actual requirements as well as affordability of these buyers, as well as the interest of investors who are seeking to capitalize on the trend of 'localized upgradation'.
Currently most suburbs have multiple choices in this category. A few areas that rank high on factors such as overall living standards and growth are:
According to the latest weather update by Skymet Meteorology Division in India, good Monsoon showers will continue over most parts of Northeast and East India. Konkan, Goa and Karnataka along the west coast of peninsular India will also continue to receive good amounts of rain. As predicted, Southwest Monsoon has covered east Uttar Pradesh and is likely to cover central parts of the state in next 24 hours.
Here are the top ten rainiest cities in India on Friday, 20th June-
Cities State Rainfall (in millimetres) Cherrapunji Meghalaya 232 Gorakhpur Uttar Pradesh 84.4 Darjeeling West Bengal 84.1 Karwar Karnataka 70.2 Bokaro Jharkhand 67 Agumbe Karnataka 68.4 Honnavar Karnataka 59.3 Burdwan West Bengal 59 Coochbehar West Bengal 51 Barpeta Assam 50
By: Skymetweather.com
In marked contrast to other cities, the dynamics of luxury housing in Mumbai have changed dramatically over the last decade. Delhi, Kolkata and Chennai continue to have location-specific premiums, which have risen consistently. Boat Club Road in Chennai, Jor Baug in Delhi and Ballygunge in Kolkata continue as the most premium areas of these cities, while Cuffe Parade, Marine Drive, Pedder Road and other premium locations in Mumbai have witnessed a slowdown in demand and price appreciation.
In Mumbai, with the CBD shifting to BKC for all practical purposes, even the most attractive parts of the city have not witnessed increased action in terms of sales, relative appreciation and leasing over the last 5-7 years.
With the CBD and even the Diamond Market moving to Bandra Kurla Complex (BKC), there has been a dramatic shift of preferences for luxury housing in Mumbai. South Mumbai residents now show increasing preference for moving to complexes in Mahalaxmi and Jacob Circle, giving up the standalone buildings they have been occupying since security and parking have become a challenge.
The shift towards Worli reflects that a desire to be close to the Sea Link for faster access to BKC is another important market trend. The Bandra-Khar-Santacruz belt and specifically BKC have become the best options for corporate employees who wish to live closer to their workplaces. Diamond traders are also shifting to these areas and to Worli for the same reason.
The Media, Pharma, FMCG and SME sectors are the key residential property drivers in the Andheri-Malad-Goregaon-Powai belt. With HUL, P&G, Glenmark, Sun Pharma and many other larger names shifting their headquarters to the Andheri-Powai belt, we have seen a sudden increase in demand for premium and marquee properties in this market. The wish to reside closer to the airports, highways and Metro stations are the key drivers for this preference.
Denizens of the media world (i.e. television and film artist) prefer living in the Andheri-Malad-Goregaon belt, as these areas are closer to the major studios. With the sudden increase of channels and programs over the last 5-7 years, there is now an unprecedented demand for good premium and marquee properties in this belt.
South Mumbai properties that have perennial demand:
| Building Name | Location | Reason | Indicative Price Points in the Re-sale space | |
| 1 | Samudra Mahal | Worli | Sea Facing/Profile of Occupants | Starting from Rs.1 Lac per square feet |
| 2 | Kalpataru Horizon | Worli | Sea Facing/Profile of Occupants | Starting from Rs. 70,000 per square feet |
| 3 | Godrej Bayview | Worli | Sea Facing/Profile of Occupants | Starting from Rs.75,000 per square feet |
| 4 | Raheja Vivarea | Mahalaxmi | Race Course /Sea Facing / Profile of Occupants | Starting from Rs.60,000 per square feet |
| 5 | Jolly Maker Chambers (Cluster) | Cuffe Parade | Sea Facing / Profile of Occupants | Starting from Rs.65,000 per square feet |
| 6 | Signature Island | BKC | Only Luxury Project inside G Block of BKC & Profile of Occupants | Starting from Rs.55,000 per square feet |
| 7 | Oberoi Woods | Lokhandwala | Preferred by Media world | Starting from Rs.25,000 per square feet |
Mumbai's new alternate luxury locations:
A family living in South Mumbai that wants to upgrade from a 2 BHK to 3 BHK or 4 BHK usually operates with a limited additional budget after selling its existing home. After a prolonged stint in South Mumbai, very few locations provide comparable appeal – or, indeed, comparable options.
Such families will consider options in Mahalaxmi, Parel, Lower Parel and Worli, and tend to be open to locations such as Mazgaon and Byculla as secondary options. The additional investment for exploring these alternatives is usually between Rs. 2-4 crore. Reputed developers like K Raheja Corp., Kalpataru and Runwal have luxury projects in these areas and are actively catering to the demand coming from erstwhile residents of South Mumbai.
South Mumbai residents who cannot stretch their budget to accommodate their new space requirement are looking at Wadala as alternate option. With the arrival of the Eastern Freeway and the Monorail, Wadala has in fact become a hot destination for South Mumbai residents whose children study in Cathedral, G D Somani Memorial and other reputed schools. Currently, Dosti Group's projects are clear leaders in this location, thanks to the superior social infrastructure they provide.
In the CBD area, the BKC belt has surprised most market pundits over the last decade. With the robust development in this prime location of Mumbai, many families from South Mumbai have been able to move into luxury projects there with just marginal budget additions. In the process, they have gained the advantages of additional bedrooms as well as significantly enhanced luxury living experience. The BKC luxury residential market is being serviced by developers like Sunteck, Kalpataru and Hubtown.
'Affordable Luxury' locations:
In a city like Mumbai, the concepts of luxury and affordability tend to be mutually exclusive concepts. Given the ever-escalating shortage of land in the city, coupled with the skyrocketing cost of construction, property price increases and multiple new taxes introduced in the last budget have conspired to push up the consumer cost of buying homes.
The new trend 'affordable luxury' does address the traditional clientele for luxury homes in Mumbai, but applies to local residents of suburban and far-suburban areas who are seeking to upgrade their lifestyles within their current localities. Developers who cater to the demand for affordable luxury are constrained upon to ensure that their offerings meet the actual requirements as well as affordability of these buyers, as well as the interest of investors who are seeking to capitalize on the trend of 'localized upgradation'.
Currently most suburbs have multiple choices in this category. A few areas that rank high on factors such as overall living standards and growth are:
Jun 21, 2014, 05.14 PM IST | Source: Moneycontrol.com
Investors looking for an exposure to small and mid cap funds can consider this as a part of their portfolio. It is suitable for slightly aggressive investors who are comfortable with a slightly higher amount of risk.
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Review: DSP Blackrock small and mid cap fund
Investors looking for an exposure to small and mid cap funds can consider this as a part of their portfolio. It is suitable for slightly aggressive investors who are comfortable with a slightly higher amount of risk.
Inception: November 2006
Assets under Management: Rs 1148 crore at the end of May 2014
Fund Managers: Apoorva Shah and Vinit Sambre
Analysis:
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Expect heavy FII interest in Indian midcap story: Ambit
Arnav Pandya
Salaried individuals often find themselves in a bind because some of their financial details have changed and they find that the tax that is deducted each month is actually higher than what it should be. One of the ways in which they can tackle the position is through the use of the investment declaration form as this would allow them to ensure that they have mentioned the right points to their employer who would take this into consideration and hence ensure that a lower amount of tax is actually deducted. Here is a closer look at the issue and what the individual can actually do.
Actual process
There is a certain amount of income that is earned by the employee and this is distributed under various heads. Depending upon the figures here plus the various tax saving investments that would be undertaken by the employee during the year the employer works out the annual tax liability and then ensures that the required amount of tax is deducted each month on the salary that is paid out. Thus there are two main factors that are at play here. One is the income amount and the heads under which this is received while the other is the investments that are actually done by the individual which will lead to the benefit of a lower tax for them.
Changes
The ideal situation for the individual taxpayer would be that the details of the investments and other processes that they do is available right at the start of the financial year so that these details are provided to the employer in the investment declaration form. This would ensure that the entire figure is considered by the employer right from day one and the maximum possible tax savings are considered in the workings and the action is taken accordingly. However this is not always the case as there might be some steps that happen in the middle of the year which might not have been present earlier. This could be something like a home loan taken after a few months from the start of the financial year so this might not have been present in the earlier workings but would now have to be included because the impact can be quite significant.
Prompt action
Whenever there is any such change that is actually witnessed then the individual should ensure that they transmit these details to their employer. This might require the filling in of the investment declaration form again with the updated details and giving of some other details that would help the employer in ensuring that the right amount of deduction is done on the tax front. The employee should ensure that they consider this aspect and finish this process because there is a need to ensure lower tax deduction and this opportunity should not be missed. If this is not done immediately then there could be a higher tax deduction which they would need to claim later from the tax department as refund.
Need
The need to ensure that there is some action taken on this front is important because this is to ensure that while the issue is still with the employer before the end of the financial year in terms of the amount of the tax deducted at source the right details are considered. If this chance is missed out then there would be a position where the individual would find that they have to take the refund from the government which can only be done when the return is to be filed and hence this will have a long time lag. This would mean that the amount involved during this time would not be recoverable but early action could lead to adjustments in future tax deductions during the year.
