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39 Indian companies make to Forbes ‘Best Under A Billion’ Asia list

Tushar Mathur — Fri, 03 Sep 2010 03:07:37 +0000

With 39 Indian companies in Forbes ‘Best under A Billion’ Asia list India is placed on the second position.

India is in second place with 39 entries, 19 more than last year, this number makes India the biggest gainer. More Indian companies made the list this year as the country is less open than many other Asian economies, and was therefore, less affected by the global downturn.

From the total of 200 companies, 151 firms are new on the list, compared with 136 last year, while 49 are returnees. Firms in information technology, healthcare and electronics sectors accounted for close to half of the 200 companies on the list.

Of the entire total companies, 71 firms based in China and Hong Kong.

The Indian companies like Jindal Drilling and industries, Emami, Exide Industries, Compact Disc India, Amara Raja Industries, Everonn Education, , ELGI Equipments and ICSA (India) and others made to the list of ‘Best Under A Billion’ Asia List.

The ‘Best Under A Billion’ list is chosen from nearly 13,000 publicly-listed Asia-Pacific companies with actively traded shares and having sales in the range of USD 5 million- USD 1 billion.

The selection of the best 200 companies is based on earnings growth, sales growth, and shareholders’ return on equity in the past 12 months and over three years.

September 2010 issue of Forbes Asia Magazine will carry the “Best under a Billion” list.

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39 Indian companies make to Forbes ‘Best Under A Billion’ Asia list

India loses a whooping $65 bn yearly because of poor logistics

Tushar Mathur — Thu, 02 Sep 2010 03:05:37 +0000

A report made a revelation that every year India loses a whooping $ 65 bn due to inefficient supply chain management system. This loses happens in spite of the retail sector being in the high growth mode.

The report, which released on 1^st September 2010, said that the inefficiency could hamper the growth pace of this happening sector.

According to the report by the apex industry body titled ‘Global competitiveness of retail supply chain–Challenges, Strategies and Recommendations’, the sector is expected to touch $879 billion by 2018, but if its supply-chain system’s challenges are not addressed, its growth could get hampered

The report further said, “Since Independence only 20 per cent capacity has been added to the railway network but the traffic has increased ten times. In a sector where margins are wafer-thin, the supply- chain management is a critical enabler to profitability and this has to be improved.”

The report also maintained that the supply-chain costs in India are about 12-13 per cent of the GDP as compared to 7-8 per cent in developed countries. Hence, India loses out around $65 billion annually.

It further added that the challenge also lies in the country’s demography, geographical spread, distinct consumer preferences and differential taxation laws, which needs to be addressed.

©2009 Copyright by Invest In India
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India loses a whooping $65 bn yearly because of poor logistics

FM introduced Direct Tax Code bill in Lok Sabha

Tushar Mathur — Tue, 31 Aug 2010 03:12:37 +0000

The much talked about Direct Tax Code (DTC) bill was introduced today in the parliament by the finance minister Pranab Mukherjee.

DTC bill was cleared by the cabinet and will know be subjected to the parliamentary committee for scrutiny.

The scrutiny and replacement of the current tax norms is the need of the hour as India is marching to be the third largest economy. The purpose of the bill will be to modernise India’s direct tax laws, mainly its income tax act which is now nearly 50 years old, the government through the bill seeks to simply procedural laws and build a investor friendly atmosphere. It aims at phasing out multiple tax exemptions and deductions.

The DTC bill proposed to raise the exemption limit on income tax from the current Rs1.6 (for male)lakh to Rs2 lakh.

The bill seeks to fix corporate tax at the current 30% but without surcharge and cess. With surcharge and cess, the current tax liability on corporate comes to over 33%.

The legislation also proposes to increase MAT from 18% to 20% of book profit of a company. It seeks to levy dividend distribution tax at 15%.

The bill, introduced by finance ministry, seeks to widen income tax slabs to levy 10% rate on income between Rs2 lakh to 5 lakh, 20% on between Rs5-10 lakh and 30% above Rs10 lakh.

DTC bill was cleared by the cabinet and will know be subjected to the parliamentary committee for scrutiny.

The legislation is expected to be taken up for discussion when the parliament reconvenes for the winter session in November.

‘The tax norm is also expected to update tax rates and administration for foreign institutional investors, for whom India is a top destination.

©2009 Copyright by Invest In India
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FM introduced Direct Tax Code bill in Lok Sabha

Sensex may touch 30,000 points in next copule of years

Tushar Mathur — Sun, 29 Aug 2010 12:17:30 +0000

Here is some good news for us Indians and especially for the stock market investors

Madhusudhan Kela, fund manager, of country’s renowned Anil ambani group has predicted that the benchmark sensex will cross 30,000 points in the span of 3 -5 years down the line.

Though the has hinted caution about the market outlook in the next three months, Kela told PTI that he optimistic about the market figure in the longer term.

“I am bullish about the stock market’s performance in the medium to long term and expect the Sensex may even go beyond 30,000 level in the next 3-5 years. FII inflows are also expected to be robust in the long term,” Kela said.

From January to August, the Sensex has been moving mostly in the range of 16,000-17,000 levels, though it had touched its highest level of 18,475 points for the first time since February 2008 on August 19.

Currently the sensex is at 18,000 odd points and going by the prediction of Madhusudhan Kela if sensex achieves 30,000 points it will be an increase of 100 per cent.

Kela thinks the stock market may be impacted if FIIs start selling amid uncertainty in global markets.

“I expect the stock market may see a correction of around 10 per cent in the next three months if FII inflows, which are fuelling the stocks at present, become subdued. And there is not enough demand from domestic investors to keep the market afloat,” Madhusudhan added.

Foreign Institutional Investors (FIIs) have poured in as much as Rs 11, 447.60 crore so far in August, according to data available on the Securities and Exchange Board of India (Sebi) website.

With improving global economic conditions, the FII investments have been robust this year with their total inflows close to Rs 60,000 crore so far in 2010.

©2009 Copyright by Invest In India
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Sensex may touch 30,000 points in next copule of years

Cheaper loan rates to woo customers this festive seasons

Tushar Mathur — Sat, 28 Aug 2010 19:15:16 +0000

PSUs are planning to attract customers by offering them loans at a cheaper interest rate.

In order to increase the customer in their loan registers banks are planning to woo individuals with cheaper loans even as interest rates are on the rise.

Considering Ganesh Chaturti and Diwali round the corner public sector banks are trying to instill the festive spirit and drive people to take loans.

Consumer loans could be now available even at 150 basis points less than they were for the next few months as banks unveil special offers.

KR Kamath, CMD, PNB, “We are planning to lend at lower rates to small borrowers. Car loans will be cheaper by 50 basis points and will be available at 10%, while home loans for up to Rs 50 lakh will be available at a fixed rate of 8.5% across maturities whereas these are now being at 10-10.5%.”

OP Bhatt, chairman, SBI, says, “Our festive offers for retail borrowers will be out soon and we believe that if we bring down rates, consumers will borrow because typically people do buy cars or houses during the festive season.’’

However this strategy of attracting customers by reducing the rate is not in swing among the private banks.

Pralay Mondal, Head, Retail assets, HDFC bank, said, “There is no question of reducing interest rates for consumers even if it is the festive season. In a rising interest rate regime, funds are not going to become cheaper.”

PC John, of Federal Bank, adds, “We are not planning to bring down interest rates either on auto or home loans. Those banks with surplus liquidity may want to cash in on the festival season.We have just enough liquidity.”

©2009 Copyright by Invest In India
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Cheaper loan rates to woo customers this festive seasons

Majority of India’s ‘middle class’ earns between 1000 to 2000: ADB

Tushar Mathur — Mon, 23 Aug 2010 04:46:42 +0000

India is growing at a pace never seen before and its corporate are makes millions and waves in the business arena across the globe.

Indian middle class is the engine of India’s growth.

As per the Asian Development Bank report most of this middle class earns between Rs 1,000 and Rs 2,000 per person per month.

Only 0.0009% of Indians earn more than Rs 10,000 per month.

The ADB’s Key Indicators for Asia and the Pacific 2010 report released this is the projection that the Asian middle class will dominate the next two decades (including crossing a billion in India alone by 2030), the report says that Asia’s emerging consumers are likely to assume the traditional role of the US and European middle classes as global consumers, and to play a key role in rebalancing the world’s economy.

However, the definitions used to arrive at such conclusions scarcely fit with the traditional definition of the middle class, as those who have not inherited wealth, hold regular jobs and enjoy a degree of financial security that allows them to consume and save and support the maintenance of law and order. The ADB report defines the middle class as those earning between $2 and $20 per person per day, measured in international dollars, ie adjusted for purchasing power parity. The ADB does add further nuance by splitting the middle class into three sub-sections : lower middle class ($2 – $4), middle middle ($4 – $10) and upper middle ($10 – $20).

The vast majority of the Indian middle class 82% of it, or 224 million people – however, fit into the first category. Since $1 PPP is Rs 17.256, this means that the vast majority of the Indian middle class earns between Rs 1035 and Rs 2070.

The ADB report shows that middle-class Indians systematically define themselves as poorer than they actually are in surveys. Even by this fairly stingy definition, in all of developing Asia, only Uzbekistan , Lao, Nepal and Bangladesh have a middle class that is a smaller proportion of the total population than in India . China’s middle class is 63% of its population, Sri Lanka’s 59% and Pakistan’s 40%.

©2009 Copyright by Invest In India
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Majority of India’s ‘middle class’ earns between 1000 to 2000: ADB

Taxpayers may get relief in terms of tax rates

Tushar Mathur — Fri, 20 Aug 2010 11:32:45 +0000

Here is good news for the tax payers.

As per the PTI news the taxpayers may get respite in terms of tax rates in the proposed Direct Taxes Code (DTC), which is likely to replace the 50-year-old Income Tax Act from the next fiscal.

The DTC bill is likely to be presented in this session of Parliament so that it could replace the archaic Income Tax Act from April 1, 2011.
At the same time, the government would take measures so that the flight of revenue from India can be checked.

At an Assocham tax conference, Central Board of Direct Taxes (CBDT) Chairman S S N Moorthy said, ”We are in the process of reducing the rate of tax and DTC will be a good example in that direction.”

He added that India is coming down to a realistic platform where the rates will be almost in line with international standards. “We are in the process whereby we have to be taxpayer friendly, we have to be in tune with international standards.”

In the first DTC draft, the government had proposed a substantial widening of the tax base. It had suggested imposing 10 per cent tax on income of Rs 1.6 lakh-Rs 10 lakh, 20 per cent on income of Rs 10 lakh-25 lakh and 30 per cent beyond Rs 25 lakh in a year.

The proposed tax slabs were even substantially wider than the increase in the Budget 2010-11. The Budget imposed 10 per cent tax on income of Rs 1.6 lakh-5 lakh, 20 per cent on Rs 5 lakh-8 lakh and 30 per cent on over Rs 8 lakh in a year.

Moorthy further said that direct tax collections of Rs 4.3 lakh crore for the current fiscal are on track.

“The target for the current year is about Rs 4.30 lakh crore. Fortunately we are on track. We are growing at the rate of 15 per cent,” he added.

He further said tax deduction at source collection, which constitute a major chunk of direct tax, is not adequate but it would pick up. “This year we are going at the (TDS) rate of about 37.5 per cent which is not adequate enough but anyways it will pick up.”

Last year, TDS collection touched around 38 per cent of the total revenue. It was about Rs 1.40 lakh crore.

©2009 Copyright by Invest In India
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Taxpayers may get relief in terms of tax rates

Sebi may increase limit upto 2 lakh for retail investors

Tushar Mathur — Thu, 19 Aug 2010 09:03:52 +0000

Securities and Exchange Board of India (Sebi) has intended to increase the investment limit for retail investors in public issues. This move by Sebi will be welcomed by the investment banking and broking community.

The market regulator said in a discussion paper released on Wednesday that the limit could be increased from the current cap of Rs1 lakh to Rs. 2 lakh.

Market investors have been asked to submit comments on the proposal before September 3.

There was a debate in the recent past regarding the Rs 1-lakh. The investors’ are of the opinion that the low investment limit requires lakhs of applications from small investors for the retail portion to be fully subscribed, making it a logistical nightmare.

Case in point is, in a Rs 5,000-crore issue, a 35 per cent reservation for retail investors would require Rs 1,750 crore to be raised through small investors. Assuming every retail investor submits a bid for Rs1 lakh, it would require 175,000 applications for the segment to be fully subscribed. Not surprisingly, quite a few recent issues that were subscribed more than one time saw the retail portion remaining undersubscribed.

The discussion paper by Sebi says, “This could be a daunting task, considering that in the case of well oversubscribed issues, the number of applications received from retail individual investors was in the range of 35,000 to 70,000.”The issue of attracting retail investors in public issues has been high on the regulator’s agenda. Only recently, it allowed issuers to close the bidding for qualified institutional buyers one day prior to retail investors. The premise was that retail investors would get enough time to make investment decisions based on the appetite of institutions.

“It is more than five years since the limit of Rs 1,00,000 for defining a retail individual investor was stipulated. It is felt that the aforesaid limit… needs to be enhanced,” notes Sebi’s discussion paper.

©2009 Copyright by Invest In India
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A lucrative option waiting abroad

Tushar Mathur — Wed, 18 Aug 2010 04:40:04 +0000

What dream you are chasing? Is it to go abroad for studies and gain international exposure? Do you have the funds? Don’t know how to get started? Here’s a little help!

Reasons for studying abroad:

Students, nowadays have a variety of reasons to study abroad. The destinations being United States, Australia, New Zealand, France or any other which fits the requirements of the students. Students gain enormous self confidence when they move out from the protected environment of their families. They develop independence and multiple skills to face the competitive and global environment.

International universities help to opt for courses not available in home universities or gain credits for home universities. It gives an exposure to diverse cultures and languages and also helps to make many global friends. A mention of foreign university on resume helps in securing competitive advantage over other applicants.

Planning for the place of study

It can depend on your knowledge of foreign language, subject/course to be pursued, the duration of the course, culture, environment/location, food and the people of foreign country like New Zealand is favoured due to its peaceful location and the cost involved in studying.

What is needed?

Admission to a foreign university or college.

Passport and visa.

Minimum education grade.

Financial assistance

Planning for finances for studying abroad

The finances need to be planned for housing, food, local travel and other day to day activities apart from the course fees and air fare. Sometimes, discounts or scholarships are available in respect of course fees to students having academic excellence. There are various options available to secure finances if you do not have enough savings or money to plan for studying abroad.

Education loans are available to students at reasonable interest rates to help students pursue career of their choice if the course offers promising job opportunities. This may cost less than funding from foreign land’s sources.

Students are offered loans by the institutions abroad if they pursue courses from their country. The students can get help from the financial advisor of their university or college. The exchange rates need to be considered.

Students can also look for part time jobs in the host country to finance their studies, though it’s not easy to work due to the restrictions of the host country.

©2009 Copyright by Invest In India
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A lucrative option waiting abroad

Loans to get costlier as PSU’s increased their base lending rate

Tushar Mathur — Tue, 17 Aug 2010 03:07:45 +0000

State Bank of India (SBI), the country’s largest banking player on Monday beefed up its benchmark lending rate by 50 basis points to 12.25%.

This increase in the base lending rate by the SBI signals the dripping down of the Reserve Bank’s policy of tight money.

State Bank, which along with its associates control a quarter of bank loans and deposits in India, said it was raising its benchmark prime lending rate (BPLR) 50 basis points to 12.25% effective from 17^th of August 2010.

This will make home, vehicle and corporate loans to existing customers costlier. However, for new borrowers the base rate, which became effective from 1 July this year, stands at 7.5 per cent.

SBI also raised its fixed deposit rates by up to 150 basis points across various maturities.

The decision comes days after RBI increased its key rates to control rising prices.

The Reserve Bank of India has increased its main short-term lending rate by 100 basis points since mid-March and the borrowing rate by 125 points, to curb inflation that has stayed in double-digits for 5 months.

Meanwhile, other public sector banks (PSU) have also revised their money lending and deposit rates. Punjab National Bank, the country’s second largest lender, has increased its benchmark prime lending rate by 75 basis points. This is the sharpest increase among all lenders.

Bank of Baroda, Corporation Bank and Oriental Bank of Commerce have also increased their standard lending rates by 50 basis points.

©2009 Copyright by Invest In India
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Loans to get costlier as PSU’s increased their base lending rate