Agriculture
Rainfall spread `satisfactory'
WHILE the groundnut growing areas of Gujarat have received timely monsoon rains, the regions of Rayalseema in Andhra Pradesh, where the legume is widely cultivated, are starved of rain.

Airlines
IA net loss for May touches Rs 14 cr
THE State-owned domestic carrier, Indian Airlines' (IA) woes on the financial performance front continued in May this year, with a net loss of Rs 14.85 crore during the month. This has taken the cumulative net loss of IA during the first two months for t he current fiscal to Rs 32.60 crore.

Aquaculture
HC makes prior permission mandatory for aquaculture in AP
IN a significant judgment with far reaching consequences, the Andhra Pradesh High Court has directed the State authorities on Thursday not to allow anybody to carry on the activities of shrimp culture or prawn culture or any type of acquaculture in the S tate without obtaining the prior permission of the competent authority.

Automobiles
Yamaha Motor launches new bike
YAMAHA Motor India Ltd (YMIL), the wholly-owned subsidiary of Yamaha Motor Company of Japan, has launched a new 106cc, four-stroke motorcycle, in the form of an upgraded, redesigned version of its present 100cc bike - `Crux'.

Banking and Finance
RBI seeks details of deals routed through OCBs
THE Reserve Bank of India has asked banks to submit details of various transactions that are routed through overseas corporate bodies (OCBs). The RBI also asked banks to confirm if they were following rules and regulations with regard to OCBs.

Commodities
Financial aid to brown fibre sector goes up
THE Coir Board's financial assistance to the brown fibre sector had gone up substantially during the last fiscal.

Online trading of cotton, oilseeds futures soon
FOR the first time, India's two premier exchanges --the East India Cotton Association (EICA) and the Bombay Commodity Exchange (BCE) -- are going to kick off online futures trading in cotton and oilseeds very shortly. The exchanges are in the process of commencing mock trading next month.

Commodities bourse: No decision yet on location
THERE is still delay over finalising the location for the much-awaited National Commodities Exchange (NCE).

Corporate
Boehringer and Scherring to sell German Remedies stake to Zydus
GERMAN companies, Boehringer Ingelheim AG and Scherring AG, are to sell their stake in German Remedies to Zydus Cadila. Both companies each hold about 4.62 per cent stake in German Remedies.

Phillips Carbon Kochi unit shut down
KOCHI: The 100-tonne per day Phillips Carbon Black unit at Kochi was shut down on Thursday after a large contingent of people in the vicinity stormed its gates alleging pollution from the factory premises.

Berger to brush more with automotive paints
BERGER Paints India Ltd has identified automotive paints as a thrust area, according to Mr K.S. Dhingra, Chairman of the company.

Prosecution in Amara Raja case
MUMBAI: The Securities & Exchange Board of India (SEBI) has launched criminal prosecution against Mr Harinarayan Bajaj and his son Rahul for creating artificial market in the shares of Amara Raja Batteries Ltd.

TTK-LIG delists from Madras SE
CHENNAI: TTK-LIG Ltd has delisted itself from the Madras Stock Exchange with effect from July 13, according to a company press release.

Vedika Securities offers new facility
KOLKATA: Vedika Securities, a depository participant, has offered a facility to investors wherein shares can be sold and the proceeds collected on the same day after market hours.

Great Eastern not hopeful of smooth sailing ahead
THE Great Eastern Shipping Co Ltd (Great Eastern) which reported on Thursday its highest ever quarterly net profit of Rs 61.70 crore, is ``unlikely'' to repeat the performance through the remaining part of the fiscal, Mr Bharat K. Sheth, Managing Directo r of the company said here today.

ECS to tap potential in life sciences
ECS Ltd, formerly known as Eicher Consultancy Services Ltd, a 50:50 joint venture of Eicher with the US-based management consultancy major, Strategic Decisions Group (SDG), plans to focus on extending its services to life sciences sector in India.

NIIT FII limit at 49%
FOREIGN institutional investors (FIIs) can now purchase equity shares and convertible debentures of NIIT Ltd up to 49 per cent of its paid-up capital through primary and secondary markets in the country under the Portfolio Investment Scheme, according to an RBI press release.

DCA orders inspection against 94 companies
THE Department of Company Affairs (DCA) has ordered inspection of books of accounts and other records of 94 companies based on the preliminary investigation report of the Securities and Exchange Board of India (SEBI) on price manipulation.

SRF board okays Tyrecord merger
THE board of directors of SRF Ltd on Thursday approved a restructuring scheme that envisages the merger of Tyrecord Fabrics Ltd (TFL), a 100 per cent subsidiary of SRF, with the company.

Jindal Aluminium refutes Govt clarification
JINDAL Aluminium today described the clarification of the Union Finance Ministry as incorrect and has maintained its stand on the issue of the revision of the import duty to 25 per cent being the decision of the present Government. The Government had reb utted the company's allegation of having increased the import duty on aluminium to favour a big company.

Godrej meet today to take up unit revamp
A MEETING of the board of directors of Godrej Industries Ltd is scheduled to be held on July 28 to consider a proposal to restructure Godrej Foods Ltd by demerging its manufacturing business into Godrej Industries Ltd. When contacted, company officials d eclined to provide details.

TI to sell cycle unit in Chennai
TUBE Investments of India Ltd proposes to sell off its cycle plant at Paruthipet, here. ``We have almost finalised the buyer,'' the company's Managing Director, Mr V.A. Raghu, told Business Line. He, however, did not want to divulge the name of the buyer .

Jhunjhunwalas to become major shareholder -- Jindals to sell part Shalimar stake to partner
THE Rs 4,500-crore O.P. Jindal group has decided to sell a part of its stake in domestic paint major Shalimar Paints to their foreign partners, the Hong Kong-based Girish Jhunjhunwala Group of Companies. This will make the Jhunjhunwalas the major shareho lder in the Rs 140-crore domestic paint major.

Rare brush with an academic
THERE was an unlikely questioner at today's annual general meeting of Berger Paints India Ltd.

Economy
Concern over falling Japanese FDI in India
DIRECT investments from Japan to India has been declining over the past two to three years and trade between the two countries has been flat, according to Mr Jiro Aiko, Chairman of the Standing Committee of Japan-India Business Cooperation Committee (JIB CC), and Advisor, Sony Corporation.

Govt pre-pays high-cost IBRD loans
NEW DELHI: The Government has pre-paid eight high-cost IBRD loans during fiscal 2000-01. Over the last two years, the Union Finance Ministry has attempted to identify some of the high-cost multilateral loans contracted by the country over a decade ago, a s part of an active external debt management strategy.

Course of corporate profit rate in US
THE Bureau of Economic Analysis of the US periodically presents data on national income, capital stock, international investment position, and so on. With some of the best technical economic experts on its staff, it regularly publishes surveys of the cur rent businesses of the US. The information is also up to date.

Monsoon weakens; South facing intense dry spell
IF last year, it was Rajasthan, Gujarat and Madhya Pradesh, this year it is the turn of virtually the whole of southern India and the North-East to reel under the stress of deficient monsoon rains.

Editorial
Welcome WTO steel ruling
THE RECENT RULING by a WTO appellate body that the US had acted illegally in increasing duties on Japanese steel imports should be seen as a shot in the arm for a host of steel exporters penalised in recent times by the US Administration on dumping groun ds. Indeed, going by the specifics of the case in hand -- namely, that the US Administration had not acted as per the WTO rules when it levied the anti-dumping charges after ``refusing to consider information from three Japanese steel companies because t heir submissions had arrived late'' -- the outlook for roughly similar complaints lodged by other steel exporters, including India, has turned decidedly bright.

Fast track
DSQ Soft, VSNL take a knock
THE past fortnight saw some stocks touch their all-time lows. Though the market is going through a tough phase, the decline in these stocks has been due to company-specific factors.

Fertilisers
LNG: No panacea for fertiliser woes
FOR almost two decades, natural gas has occupied the centrestage in the Indian energy scene in view of its being the most preferred feedstock/fuel in various industries. This is mainly due to the lower investment required for setting up plants based on g as vis-a-vis other sources of hydrocarbons, such as naphtha, fuel oil, LSHS and coal, on the one hand, and the lower energy consumption, on the other. Its being a clean fuel, and therefore environment-friendly, further adds to its charm.

Financial Performance
Colgate-Palmolive net up 18% in Q1
MUMBAI: Colgate-Palmolive (India) Ltd has reported an 18 per cent increase in net profit at Rs 15.8 crore for the first quarter of 2001-2002 as compared to Rs 13.4 crore in the year-ago period.

ITC Bhadrachalam Q1 net declines
HYDERABAD: ITC Bhadrachalam Paperboards Ltd (ITC-BPL) has suffered a significant fall both in operating profit and net profit for the first quarter of current fiscal ended June 30, 2001 despite having achieved a marginal growth in total turnover.

Morepen Labs Q1 net up 11 pc
NEW DELHI: The turnover of Morepen Labs went up by 12.31 per cent during the first quarter of the current financial year to Rs 117.42 crore compared to Rs 104.55 crore in the previous quarter.

Novartis Q1 net dips
MUMBAI: Novartis India Ltd has reported a dip in net profit at Rs 9.15 crore in the first quarter ended June 30, 2001 as against Rs 10.15 crore in the corresponding period last year.

NMDC turnover, net up
HYDERABAD: National Mineral Development Corporation (NMDC) has posted a sales turnover of Rs 241.34 crore, other income of Rs 17.42 crore and a net profit of Rs 52.58 crore during the quarter ended June 30.

DSQ Biotech net loss at Rs 15.67 crore
CHENNAI: DSQ Biotech Ltd has reported a net loss of Rs 15.67 crore on a sales and income from operations of Rs 17.31 crore for the quarter ended June 30, 2001 against a profit of Rs 8.02 crore on a sales and income of Rs 27.62 crore, according to a compa ny press release. Interest was Rs 18 lakh (Rs 1 crore) and depreciation Rs 38 lakh (Rs 41 lakh).

Nava Bharat Q1 net doubles
HYDERABAD: Nava Bharat Ferro Alloys Ltd has posted a turnover of Rs 48.97 crore, other income of Rs 28.52 lakh and a net profit of Rs 3.06 crore during the first quarter of the current fiscal.

48 pc increase in BILT net
BALLARPUR Industries Ltd (BILT) has reported a 48 per cent increase in its net profit for the year ending June 2001 at Rs 101.28 crore as compared to Rs 68.04 crore achieved during the previous year.

ITW Signode net up
HYDERABAD: ITW Signode India Ltd, an industrial packaging solutions company, has earned a net profit of Rs 3.99 crore for the quarter ended June 30 as against Rs 3.82 crore netted for the corresponding period of the previous fiscal.

TNPL Q1 net up 25%
CHENNAI: Tamil Nadu Newsprint and Papers Ltd (TNPL) has reported a profit after tax of Rs 16.53 crore on a net sales of Rs 128.10 crore for the quarter ended June 30, 2001 against a profit after tax of Rs 13.23 crore on a net sales of Rs 128.96 crore dur ing the corresponding quarter in the previous year, according to a company press release.

Nicholas Piramal post-merger Q1 net at Rs 20.8 cr
THE post-merger net profit of Nicholas Piramal India Ltd, has amounted to Rs 20.85 crore for the first quarter ended June 30, 2001.

BHEL net loss at Rs 125 cr
NEW DELHI: Bharat Heavy Electricals Ltd (BHEL) has registered a net loss of Rs 125.18 crore on a net sales of Rs 963.56 crore for the quarter ended June 30. For the corresponding period last year, the company registered a net profit of Rs 2.02 crore on a net sales of Rs 931.11 crore.

Bharat Petroleum net up 18.8 pc
MUMBAI: Bharat Petroleum Corporation Ltd has posted a 18.8 per cent increase in net profit at Rs 222.9 crore for the quarter ended June 30, 2001 against Rs 187.6 crore in the year-ago period.

Tata Tea PAT at Rs 15.23 crore
TO enhance its presence in tea, Tata Tea Ltd (TTL) ``would like to try the same model'' as Tata Coffee's recent equity participation in Barista Coffee Company, Mr Homi Khusrokhan, Managing Director, TTL, said here on Friday.

BPL Sanyo still in red
BPL Sanyo Technologies managed to narrow the slide in its net loss only marginally during the first quarter of the current fiscal year as compared to the same period in 1999-2000. Its loss for the quarter was Rs 2 crore as compared to Rs 2.06 crore in th e same quarter, last year.

GE Shipping net soars to Rs 61.70 cr
MUMBAI: Great Eastern Shipping Company Ltd has reported the highest ever quarterly net profit of Rs 61.70 crore for the quarter ended June 30 as against Rs 48.52 crore in the year-ago period.

Indian Hotels net down 18 pc
INDIAN Hotels Company Ltd (IHCL) will spin off its air catering division into a separate company by September 30, 2001, to facilitate the proposed joint venture with Singapore Airport Terminal Services Ltd, Mr Zubin Dubash, Executive Director, IHCL, said here today.

J.K. Industries net down
NEW DELHI: J.K. Industries Ltd has reported a 62.18 per cent decline in net profit for the quarter ended June 30, 2001 to Rs 3.96 crore against a net profit of Rs 10.47 crore recorded in the same period the previous year. -- Our Bureau

Kakatiya Cement backs to black in Q1
HYDERABAD: Kakatiya Cement Sugar & Industry Ltd has posted a net profit of Rs 2.15 crores during the first quarter of the current fiscal as against a net loss of Rs 68.86 lakhs it had incurred during the corresponding period in the previous year. The com pany had posted a turnover of Rs 27.82 crores and other income of Rs 38.99 crores. As per the unaudited results, the company's basic and diluted earnings per share stood at Rs 2.91. -- Our Bureau

SKB Consumer: Truly healthy?
THE 20.8 per cent growth in net sales achieved by SmithKline Beecham Consumer Healthcare (SBCH) for the half year ended June 2001, may appear impressive, at a time when other fast moving consumer goods (FMCG) companies have been struggling to notch up si ngle digit growth rates.

Pentasoft Technologies income, net decline
PENTASOFT Technologies Ltd has posted a net profit of Rs 21 crore on a total income of Rs 116 crore for the quarter ended June 30, 2001. Income from software services and products accounted for Rs 114 crore - Rs 78.2 crore from overseas operations and Rs 35.8 crore from domestic operations.

Lower revenues hit VSNL net
VIDESH Sanchar Nigam Ltd has ended the first quarter of the financial year with a 4.5 per cent fall in net profit at Rs 365.5 crore, compared with the net profit of Rs 382.9 crore of the previous corresponding quarter.

Foreign Trade
Ministry moots study on impact of NTBs on exports
THE Commerce Ministry plans to carry out a further analysis of non-tariff barriers (NTBs) of important WTO members and trading partners of India, as part of a new exercise to quantify their impact on the country's exports.

Health
Free emergency care by Apollo
HYDERABAD: The Emergency Ambulance Network -- Hospital on Wheels of Apollo Hospitals has completed two years of free service here.

Information Technology
Globalisation motivates people to compete: Premji
ONE of the greatest advantages of globalisation is that there is motivation to compete to be the best in the world, according to Mr Azim H. Premji, Chairman of Wipro Corporation.

Insurance
Pvt insurance cos find the going tough -- Ex-PSU staff find the grass isn't greener
EVEN before private sector insurance companies have begun full-fledged operations, the shakeout in the sector is slowly beginning.

Miscellaneous
Star power
An astrologer wearing several rings demonstrating against the West Bengal Government in Kolkata on Friday for not introducing astrology as a subject in the universities of the State.

Mutual Funds
Separate fund manager for each UTI scheme planned -- Measures launched to win back trust
AS part of its revamp strategy, Unit Trust of India (UTI) plans to adopt the global practice of placing each scheme under a separate fund manager.

Banks may lend Rs 3,000 cr to UTI against scrips held
A CONSORTIUM of banks led by the State Bank of India plans to lend around Rs 3,000 crore against shares held by UTI to help it face unit redemptions starting August 1.

Subramanyam bail plea rejected
THE CBI Special Court of Mr A.R. Mehra today rejected the bail plea of Mr P.S. Subramanyam, former UTI Chairman, and extended his remand till August 3.

PSU
HZL presents dividend cheque
NEW DELHI: Hindustan Zinc Ltd (HZL), a public sector undertaking, has declared Rs 52.82-crore dividend for the financial year 2000-2001.

PPCL unions want early restructure
WORKERS unions at the public sector Pyrites, Phosphates & Chemicals have urged the Government to undertake immediate restructuring of the company to restore viability.

HCI hive-off hinges on hotel sale prior to AI divestment
THE Government plans to hive off Hotel Corporation of India (HCI), the wholly-owned subsidiary of Air India (AI), in case the sale of the hotels is not completed ahead of the airline disinvestment.

Policy
Panel to patch up Defence Ministry, union row on FDI
THE Government has decided to set up a committee headed by the Additional Secretary (Defence Production and Supplies) in an effort to defuse the tension between the Union Defence Ministry and trade unions over the move to open up the defence production t o foreign direct investment (FDI).

Bill on advocates' welfare fund introduced in Lok Sabha
THE Advocates' Welfare Fund Bill, 2001 has been introduced in the in Lok Sabha in order to make Central legislation applicable to the Union Territories and the States which do not have their own enactments for welfare fund for the benefit of advocates.

Politics
After Agra
THAT the Agra Summit would not deliver favourable results for New Delhi was a foregone conclusion -- even when the Prime Minister, Mr Vajpayee, sprang his `Summit surprise' on the nation on May 23. (Incidentally, since it was a total surprise, there was no question of the Prime Minister having consulted `important people' before the decision was taken, as is now being clarified in defence of the decision.) Clearly, the basic reason for the Summit's utter failure from the Indian point of view was the tot al absence of any conditions at the `ground-level', so to speak, for not just the success of the Summit but also holding one in the first place.

Power
Demand for DPC power only at `particular' price
THE Godbole panel today conveyed the power-offtake proposals of six States to Dabhol Power Company (DPC) officials. The company was told that there was combined demand for 800-1000 MW power at not more than Rs 2.50 per unit.

Rubber
Kerala traders oppose rubber MSP
THE Cochin Rubber Merchants Association has demanded the Union Government to desist from the move to declare minimum statutory prices for rubber as it will not benefit rubber growers in the State.

SSI
Assam: Industrial directory of small-scale units
GUWAHATI: All Assam Small Scale Industries Association (AASSIA) is planning to publish a comprehensive Directory of Industries of the North Eastern Region.

States
AP Govt announces contingency plan
HYDERABAD: The State Government has announced a Rs 140-crore contingency plan to meet the impact of the adverse seasonal conditions in the State.

Govt's role in children's rights
HYDERABAD: The Governments and societies have a moral responsibility to recognise the rights of children who have equal status with adults but have no ability to articulate their rights, said Dr C. Rangarajan, Governor of the State.

Gujarat: Budget deficit at Rs 293 cr
GANDHINAGAR: The State budget for 2001-02, with an uncovered deficit of Rs 292.95 crore, has made provisions to the tune of Rs 7,293.26 crore for earthquake relief and rehabilitation. This comes out of the budgetary provision for expenditure at Rs 36,466 .71 crore for the current fiscal while the estimated revenue for the period has been put at Rs 36,102.75 crore.

Bright scope for air-taxi services in East
LACK of appropriate knowledge and understanding of the aviation business among entrepreneurs and reluctance on the part of financial institutions to fund aviation projects-- which in any case are capital-intensive-- are the prime reasons hindering realis ation of the potential of regional airlines and air taxi operations across the country.

Caught between Govt doles and NGOs
IT is six months since the January quake devastated Gujarat, particularly most of the Kutch district. So far there are no roofs over the heads of the displaced thousands as the State Government continues to quibble with the various NGOs on the finer aspe cts of adopting villages and towns. And the rain gods have chosen the wrong moment to bless the arid region, inundating the region, transforming the sandy stretches that marked the region with green cover.

Delhi Apartment Ownership Bill, 2001 introduced in LS
A BILL seeking to provide a comprehensive framework for management of multi-apartment buildings to secure the title and rights of apartment owners with simple procedure of transfer and registration of titles has been introduced in the Lok Sabha.

Stocks
Tata Chemicals rises on buy-back news
THE stock markets continued to be in doldrums during the course of Friday's trading. There was some sporadic buying interest in a few technology stocks. However, the refusal of bail to the former UTI chairman seems to have created an uneasy thaw between the bulls and bears with either party waiting for the other to break out of the shackles.

Lyons Range
KOLKATA: THE Calcutta Stock Exchange on Friday saw the DSQ Software stock, which has continuously been falling following suspension of its trading at NSE, move up on a favourable court order.

Tata Tea scrip traded at `unrealistic' price
THE Calcutta Stock Exchange got a jolt on Friday following transactions in Tata Tea at Rs 22.40 per share. The exchange later notified the annulment of such transactions. It also issued a general warning that severe disciplinary action would be taken aga inst the members involved.

G.P. Muniappan on SEBI board
THE Government has appointed Mr G.P. Muniappan, Deputy Governor of Reserve Bank of India (RBI), to the board of the Securities and Exchange Board of India (SEBI).

Brokers upset over SEBI circular on client code
STOCKBROKERS are upset over a SEBI circular that makes it mandatory for all of them to use unique client codes for all clients. The brokers have been asked to collect and maintain the permanent account number (PAN) allotted by the Income-Tax Department, from their clients.

BSE shifts 11 B2 scrips to B1
THE Bombay Stock Exchange (BSE) has shifted 11 scrips from the B2 group to B1 group. Similarly, 101 scrips have been shifted from the B1 group to B2 group. The revision would be effective August 6.

Taxation
Foreign food
A RECENT Customs circular focusses on the testing of food items before Customs clearance so as to ensure that the Prevention of Food Adulteration Act is not violated.

On the fringe of unfairness
T. C. A. Ramanujam says that the new rules for valuation of perquisites go against the recommendations of the Chelliah Committee.

Income from unapproved investments -- Not all is lost for trusts
WHERE a charitable trust earns income by virtue of the provisions contained in Section 13(1)(c) or (d), then that relevant income is chargeable to tax at the maximum marginal rate. Section 13(1)(c) deals with any part of the income of the trust enuring f or the benefit of certain categories of persons. The persons include author or founder of the trust or institution, members of his family, relatives of the author, founder, trustee, manager or any concern in which they have substantial interest.

Nuts and bolts -- II
A TAX deduction is recognised as a tax expenditure or subsidy which should be available only in respect of disclosed income. Those who come to the Revenue with unclean hands cannot obviously demand a tax incentive from it.

Deadline thoughts
THE Income-Tax Act, 1961 relies upon voluntary compliance on the part of taxpayers to meet their obligations. An obligation for filing returns exists merely because they may have taxable income, even if they do not have any tax to pay, especially when ad equate tax has been deducted at source. Even when they may have no taxable income, returns have to be filed if they satisfy any one of six rules: have more than the specified area under occupation of immovable property, whether as owner or tenant, within the notified city or town; own a motor vehicle; subscribe to a telephone; have incurred expenditure on foreign travel; hold a credit card; or are members of a club with entrance fees of Rs 25,000 or more. Senior citizens are exempted from two of the six criteria -- occupation of minimum space in area and owning a telephone.

I-T dept comes to assessees' doorstep
IN an effort to help the salaried class Income Tax assessees from the blues of last minute rush in filing IT returns, the Income Tax department in Coimbatore is offering collection of bulk IT returns at the door step of the assessees.

Tea
CTCs steady at Kochi auction
A GOOD general demand has resulted in the spurting of prices of almost all varieties of tea at the Kochi tea auction.

Technical Analysis
Mild bear domination
INITIAL hours of Friday's trading witnessed a bull domination. Later on, the bears took over and wiped out the gains made by the bulls. The movement in the index was around 15 points. It closed for the week with a loss of two points with respect to Th ursday's close.

Source:Business Line