Eight new services under tax net at 10%

Retaining the stimulus rate of service tax at 10 per cent, the Union government on Friday sought to widen the revenue base by bringing eight new services, including brand promotion, under the net and expanded the ambit of some of the services to garner Rs. 68,000 crore during 2010-11.

In effect, it will be Rs.10,000 crore more than the Rs. 58,000 crore mopped up this fiscal, as per the revised estimates.

Explaining the rationale for the changes, Finance Minister Pranab Mukherjee said that while the service sector contributed 60 per cent of the gross domestic product (GDP), its tax to GDP ratio was only 1 per cent, so there was significant potential to augment revenue. He had two options: raising the tax rate to the pre-stimulus levy of 12 per cent or bringing all services under the net.

Balanced effort to sustain growth in budget: Chidambaram

Balanced effort to sustain growth in budget: Chidambaram

New Delhi, Feb 26: Home Minister P Chidambaram on Friday described the union budget as a ‘balanced effort’ marked by a responsible judgement of the state of the economy and of the measures required ‘to sustain high and inclusive growth’. “Finance Minister Pranab Mukherjee’s budget for 2010-11 is a very balanced effort marked by a mature assessment of the state of the economy and of the measures required to sustain high and inclusive growth,” Chidambaram said in a statement. The home minister, who held the finance portfolio till the 26/11 terror strikes in Mumbai, said the underpinning of a budget lay in its fiscal consolidation. “Assistance to states for modernisation of police force has been pegged at Rs.1,975 crore, a modest increase of Rs.130 crore over the actual expenditure that will be incurred in 2009-10. However, I am confident that, if necessary, we can find additional resources through re-appropriation or through supplementaries,” he said. In the union budget, Mukherjee said immigration services had been provided Rs.155 crore and the bulk of this provision (Rs.140 crore) would be spent on setting up Integrated Check Posts. The ambitious Crime and Criminal Tracking Network and System (CCTNS) has received a generous provision of Rs.175 crore. In his budget speech, Mukherjee said there had been a decline in violence in Jammu and Kashmir last year and the government had proposed a number of confidence building measures. “As one more such measure, government proposes to recruit about 2,000 youth as constables in five central paramilitary forces in the year 2010,” he said. “The worst may be over and the finance minister has signalled that beginning 2010-11 we will move in the direction of reducing the fiscal deficit and revenue deficit.” “While these two indicators will remain high in 2010-11 (5.5 percent and 4.0 percent respectively), I am confident that we would be able to adhere to the road map laid down by the 13th Finance Commission,” he added. (IANS)

Karunanidhi hits back at Jayalalitha

Karunanidhi hits back at Jayalalitha

CHENNAI, Feb 23: Hitting back at AIADMK chief J. Jayalalithaa for slamming the DMK on its decision to boycott the Supreme Court appointed committee on Mullaperiyar dam issue, Chief Minister M. Karunanidhi on Tuesday said opposition parties were only “countering” whatever the ruling party did.

In a write-up in party mouthpiece Murasoli, Mr. Karunanidhi, without naming her, said “they had prepared a statement slamming the DMK in anticipation that it will ask the government to appoint its representative in the committee.”

“But they later changed everything and prepared a statement afresh after DMK resolved against nominating Tamil Nadu’s representative to the committee,” he said, adding opposition parties were doing such things “only to counter” whatever the ruling DMK did.

Reacting to the DMK General Council’s decision, Ms. Jayalalithaa had criticised Mr. Karunanidhi, saying the state’s absence in the committee may favour Kerala and demanded nominating a member to the Supreme Court constituted committee.

On the Parliament budget session, Mr. Karunanidhi welcomed appeals by Prime Minister Manmohan Singh and Speaker Meira Kumar for smooth conduct of the House. He said the opposition parties’ decision to stall proceedings will do no good to democracy, and those watching (the acrimonious scenes) on TV “may lose confidence in democracy”. (PTI)

Man attempts self-immolation near Parliament

Man attempts self-immolation near Parliament

New Delhi, Feb 23: An unemployed man tried to set himself on fire on Tuesday near Parliament House here, police said. He was demanding the renaming of Mumbai’s Dadar railway station after B.R. Ambedkar.

Vijay Rustum from Maharashtra attempted self-immolation around 1 p.m. at Vijay Chowk in New Delhi, a police officer said.

“He poured kerosene over his left hand and lit his hand. He was saved by security personnel and bystanders,” the officer added.

He was taken to Ram Manohar Lohia hospital and was discharged after being administered first aid.

Rustum told police that he attempted suicide to get attention for his demand. (IANS)

Budget session: Speaker hopes for smooth functioning

STAFF WRITER 11:44 HRS IST
New Delhi, Feb 22 (PTI) Lok Sabha Speaker Meira Kumar today expressed hope that the House proceedings will run smoothly during the Budget Session which began today.

"The Opposition has assured me that the proceedings will not be disrupted. I hope that the proceedings will go on smoothly," she told reporters outside Parliament.

To a question on oppositions plans to rake up several burning issues, she said the House is meant for debates as per the procedures.

Sensex up 227 pts in early trade on Asian cues

STAFF WRITER 9:45 HRS IST
Mumbai, Feb 22 (PTI) The Bombay Stock Exchange benchmark Sensex flared up by a whopping 230 points or 1.42 per cent in early trade today, driven by rallies on the Asian bourses.The 30-share index, which had lost over 237 points in the past two sessions, recovered by 229.75 points or 1.42 per cent to 16,421.38 points with metals, IT and stocks leading the rally.The wide-based National Stock Exchange index Nifty regained the 4,900-points level by rising 66.60 points, or 1.37 per cent at 4,911.50 points.Stock brokers said trading sentiments were mainly helped by a strong rally on other Asian bourses after the world markets shrugged off the US discount rate hike.The BSE metal sector index rose the most with a gain of 2.15 per cent at Rs 16,145.45 with stocks of Hindalco rising 2.70 per cent to Rs 153.80, Hindustan Zinc rose by 3.

Help us build Ram temple, Gadkari tells Muslims

INDORE, Feb 18: Bharatiya Janata Party (BJP) president Nitin Gadkari Thursday called upon Muslims to help build a grand Ram temple in Ayodhya. Addressing the party’s national council here, he said the BJP was fully committed to construct the temple at the site where the 16th century Babri mosque was razed by a mob in December 1992. “Litigation is also pending for (the) resolution of this dispute, which may not offer a perfect solution because one party would lose and the other may win. “Today, I appeal to the Muslim community to be generous towards the sentiments and feelings of Hindus and facilitate the construction of a grand Ram temple. This would herald a new amity and reinforce the bond for a resurgent India.”(IANS)

Sensex ends 136 points down amid weak global cues

MUMBAI: The benchmark index for Indian equities on Friday slipped back into the red to close 136 points lower amid a slump in global bourses.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,256.53 points, shut shop at 16,191.63 points, down 136.21 points or 0.83 percent from its previous close.

RIL, SBI and ICICI Bank were among the main contributors to the weakness in the Sensex.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty ended at 4,844.9 points, against the previous close at 4,887.75 points, a loss of 0.88 percent or 42.85 points.

Broader markets were also in the red with the BSE midcap index closing 1.41 percent down and the BSE small cap index ending 1.57 percent lower.

The market breadth was negative, with 796 stocks advancing, 2,018 on the decline and 65 remaining unchanged.

There were only four gainers on the 30-scrip Sensex: HDFC Bank, up 0.94 percent at Rs.1,699.55; Maruti Suzuki, up 0.63 percent at Rs.1,370.30; ONGC, up 0.59 percent at Rs.1,105.65; and HDFC, up 0.51 percent at Rs.2,487.70.

Top losers included Jaiprakash Associates, down 4.35 percent at Rs.129.65; DLF, down 4.1 percent at Rs.291.30; Reliance Communications, down 3.37 percent at Rs.161.80; and Sterlite Industries, down 2.95 percent at Rs.745.85.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors were net sellers Friday, having sold scrips worth $6.25 million.

Other Asian markets were in the red too.

The benchmark Japanese index, Nikkei, slipped 2.05 percent to close at 10,123.58 points, while Hong Kong's Hang Seng closed 2.58 percent in the red at 19,894.26 points.

The South Korean Kospi too closed lower, dipping 1.68 percent to 1,593.9 points.

Chinese exchanges will reopen on Monday after the week-long Lunar New Year holiday.

European benchmark indices were in the red after the US Federal Reserve's decision of raising lending rates to banks made investors nervous.

The FTSE 100, the benchmark index of the London Stock Exchange, was ruling 0.35 percent lower at 5,306.41 points, while its German peer DAX was trading at 5,654.16 points, down 0.46 percent.

The French CAC 40 index was also ruling lower at 3,724.19 points, down 0.63 percent.

Soruce:TOI

India’s growth opportunity in defence

India’s growth opportunity in defence

Defence could be the next boom after the IT (information technology) and automotive sectors, hopes Wg Cdr Neelu Khatri (Retd), Manager, Defence Advisory Services, KPMG, New Delhi. “The total defence spending from 2010-2016 would be to the tune of $280 billion. Based on last five years’ average revenue, capital expenditure on major acquisition would translate into about $115 billion,” she mentions, during a recent telephonic interaction with Business Line.

BJP discards ‘untouchability’ agenda, switches to Dalit issues

BJP discards ‘untouchability’ agenda, switches to Dalit issues

INDORE, Feb 17 : Untouchability was part of the Bharatiya Janata Party’s (BJP) “political commitment”, new president Nitin Gadkari said Wednesday, indicating a significant shift in strategy for the party by bringing in issues of Dalit welfare.

Including Dalit issues in the party’s agenda, Gadkari said in the inaugural session of the BJP’s national executive meeting: “The issue of untouchability is a part of our political commitment.”

Several party leaders who attended the session were of the view that this was an indication that the BJP was no longer content to be tagged as a party of middle class urban voters. “We need to expand our base. Dalits are an important constituency and a neglected one too. No national party has taken up their cause in big way on sustained basis. We are going to do that in days to come,” a senior BJP leader who attended the inaugural session told IANS.

'1st pair of 700 MW nuke plants to be ready by 2016'

STAFF WRITER 14:13 HRS IST

Mumbai, Feb 18 (PTI) India's first set of indigenous 700 MW Pressurised Heavy Water Reactors, would be a reality in the next six years, as the excavation work at Kakrapar in Gujarat has already begun, S K Jain, Chairman and Managing Director of NPCIL said.

The Centre had last October given a financial sanction of Rs 24,000 crore for four units of 700 MW of PHWRs, two each at Kakrapar and Rawatbhata in Rajashtan, he said.

"We will begin the first 'pour of concrete' next month in Kakrapar and in Rajasthan power project site for reactor raft and wish to finish the construction of the plants within five years from that day," Jain said at the 22nd annual Heavy Water Day here yesterday.

"Since the Centre has given financial sanction for these four, we will be completing the procurement order of all components by September this year," he said.

Bengal CM admits lapse in alertness of forces

Kolkata, Feb 18 (PTI) West Bengal Chief Minister Buddhadeb Bhattacharjee today admitted that there was definite lack of alertness on the part of the forces leading to the massacre of 24 jawans by Maoists in West Midnapore district.

"There was breach in preparedness and lack of alertness," he said at the state headquarters here while announcing that an enquiry has been ordered to find out how the Maoists could carry out such an audacious attack on the Silda camp housing the Eastern Frontier Rifle (EFR) jawans on February 15.

"I decided to order an enquiry. We want to know the whole truth" including possible intelligence failure, Bhattacharjee, who holds the home (police) portfolio, said.

Terming the attack as heinous, the chief minister said "It was carried out by Maoist squads not only from our state but also from neighbouring states.

RIL, inflation pull down markets, Sensex down 101 pts

STAFF WRITER 17:38 HRS IST

Mumbai, Feb 18 (PTI) Weighed down by the market leader Reliance, the BSE benchmark Sensex snapped its two-day rally to close 101 points down amid rising food inflation.

Rising for the fourth consecutive week, food inflation inched up to 17.97 per cent for the week ended February 6, making markets nervous that the apex bank would have to push up interest rates sooner than later. This comes in the wake of the wholesale price inflation for January hitting a 14-month high of 8.56 per cent.

After opening lower on weak global cues, the 30-issue BSE barometer went down further to end the day 101.07 points lower or 0.62 per cent to 16,327.84. The 50-issue Nifty of the NSE, too, shed 26.25 points or 0.53 per cent to close below the psychological 4,900-mark yet again at 4,887.75.

Topping the jittery mood was a large-scale selling in the interest-senitive realty stocks, battering the index 2.

Food inflation rises to 17.97 pc for the week ended

STAFF WRITER 12:30 HRS IST

New Delhi, Feb 18 (PTI) Food inflation rose marginally to 17.97 per cent for the week ended February 6 on account of rising prices of potatoes and onions.

The wholesale price-based food inflation rose for the fourth consecutive week. In the previous week it stood at 17.94 per cent.

Potato prices were up 57.67 per cent from last year's level, while onions were dearer by 29.92 per cent.

The inflation for primary articles, which include food and non-food items in raw form, increased to 16.23 per cent during the week from 15.75 per cent a week earlier.

The price index for food articles, on weekly basis, moved up 0.1 per cent on account of higher rates of moong and poultry chicken (3 per cent each), while rates of fish marine rose by 2 per cent and barley and wheat became dearer by one per cent each.

Bharti Airtel market performer, target of Rs 315: Karvy

Karvy Stock Broking has come out with a research report on Bharti Airtel. The research firm has upgraded the stock from under performer to market performer owing to the recent fall in the stock price and believes investors can start accumulating at current levels.

The report says, "Bharti Airtel offers USD 10.7 billion for African operations of Zain Telecom, in exclusive talks with Zain until March 25, 2010; a key strategic move that gives Bharti a strong presence in the high potential African telecom

market."

"The estimated size of the deal, if it goes through is around USD 10.7 bn enterprise value (EV). This values Zain International at an EV/EBITDA of 9.2x annualised 9MCY09 EBITDA, which is higher than Bharti's valuations of 7x FY10E EBITDA. On an EV/subscriber basis, Zain is valued at nearly double Bharti's current subscriber base at US$ 255. Thus, it is apparent that Bharti is paying a premium for the African assets of Zain," according to Karvy report.

Advani blames Nehru for Kashmir and China policy

Advani blames Nehru for Kashmir and China policy

NEW DELHI, Feb 15: Veteran Bharatiya Janata Party (BJP) leader LK Advani has blamed the foreign policy of India’s first Prime Minister Jawaharlal Nehru for the “festering sores” of terrorism and Kashmir.

“His (Nehru’s) mishandling of Pakistan has left terrorism and Kashmir as two festering sores for our body politic right up to this day,” Advani, the chairman of BJP’s Parliamentary Board, wrote in his blog on Monday.

“The Congress has always projected Pandit Nehru as an exemplary helmsman of India’s foreign policy. (But) the founder of our political movement, Syama Prasad Mookerji, on the other hand, regarded Panditji’s handling of Pakistan, as well as China, as two egregious blunders of his,” wrote Advani quoting extensively from Fareed Zakaria’s The Post American World.

The remarks come a day after the BJP asked the Congress-led government to call off its proposed talks with Pakistan in the wake of the Pune bombing on Saturday that killed nine people.

27 logs seized by SSB

27 logs seized by SSB

From a Correspondent

GOSSAIGAON, Feb 14: On an intelligence report the 31st Bn of SSB, Gossaigaon sent a patrolling party around 11.00 am and raided a village Damrugaon (Border Area), Kachugaon forest under Gossaigaon subdivision and seized illegal logs, yesterday. The logs were being stored in the place for the last few days and smugglers were preparing to supply it. 20 logs having market value of around rupees four lakhs were seized from the village. Simultaneously, another patrolling team of the SSB at around 3.00 pm raided the village Nabin Nagar, Takampur under Gossaigaon subdivision and seized another seven logs of Sal which were having market value of Rs 60,000. The seized logs have been handed over to the Kachugaon Range Office.

Centre mulling Rs 1cr reward for Pune blast clues

NEW DELHI: The Centre is mulling a reward of Rs one crore to anyone who gives clues about terrorists who may have planted the bomb in the German Bakery, a favourite eating joint of foreigners.

Top Home Ministry officials said the reward proposal is being considered at the highest level and may take a decision in favour of it soon.

"If we declare the reward, we will tell the people that whoever shares any information about the perpetrators of the blast, his or her identity would be protected. We would not even ask his name but give the reward. But information has to be correct," an official said.

The move is being considered in the light of investigators still groping for vital clues about the terrorists behind the powerful blasts.

PTI

Centre to review security for upcoming sports events

STAFF WRITER 17:32 HRS IST

New Delhi, Feb 15 (PTI) The Centre has decided to review the security arrangements for four major sporting events, including the Commonwealth Games, to be held in India this year in wake of the Pune blast, the first major terror attack in the country in 14 months.

The decision to review the already elaborate security arrangements for the World Cup Hockey beginning February 28, the Commonwealth Games, besides the Indian Premier League was taken as a result of the blast in the German Bakery in Pune's posh Koregaon Park, which killed nine people.

Home Ministry sources said the main concern is over World Hockey Championship as any terror incident in the run up to the event may lead to withdrawal of participating nations.

Home Secretary Gopal K Pillai said the government has put in place a very elaborate arrangement for the tournament.

Trial of Kasab to resume on Feb 20 for arguments

STAFF WRITER 15:48 HRS IST

Mumbai, Feb 15 (PTI) The trial of Pakistani gunman Ajmal Kasab and two Indians in the 26/11 terror attack case has entered a crucial phase with the prosecution and defence lawyers gearing up to submit arguments on February 20.

The court would assemble this weekend, nearly a month after it concluded recording of evidence.

Special public prosecutor Ujjwal Nikam and Kasab's lawyer K P Pawar said they were ready to put forth their arguments. So also, the lawyer of co-accused Sabauddin Ahmed, Ejaz Naqvi, is all set to argue the case of his client.

However, the sudden killing of advocate Shahid Azmi, who represented co-accused Faheem Ansari, is likely to defer the arguments as Ansari would have to engage another lawyer who will have to go through the entire evidence which is time consuming.

Azmi was shot dead by unidentified gunmen in his suburban Kurla office last week.

Eight killed, 14 wounded in mishap in Tamil Nadu

STAFF WRITER 16:32 HRS IST

Theni (TN), Feb 15 (PTI) Eight women were killed and 14 injured when the van in which they were taking the body of a suicide victim, collided with a gravel-laden lorry while overtaking near here today.

Police said they were taking the body of Prabhu (27), who died after consuming poison last night, at the Government Medical College Hospital, 12 km from here, to Devathanapatti, the victim's native place.

The injured were also women.

All the victims were travelling in the van, police said.

Police said the overloaded van rolled over several times due to the impact. The driver of the van is absconding, they said.

Inflation rises to 8.56 per cent in January this year

TAFF WRITER 12:34 HRS IST

New Delhi, Feb 15 (PTI) Wholesale price-based inflation rose to 8.56 per cent in January, shooting past the RBI's forecast of 8.5 per cent for this fiscal end, as food items such as sugar, potatoes and pulses turned costlier.

Overall inflation in December was 7.31 per cent.

Sugar prices rose by 58.96 per cent in January year-on-year while potatoes turned costlier by 53.39 per cent and pulses by 45.64 per cent.

On monthly basis, prices of masur increased by 9 per cent, arhar by 6 per cent and wheat by 4 per cent.

Fuel index rose by 1.8 per cent due to higher prices of naphtha that rose 21 per cent. Furnace oil rose 6 per cent while bitumen, non-coking coal and light diesel oil rose 3 per cent each.

To tame inflation, the RBI, in its quarterly monetary review, had asked banks to keep aside more cash with them.

Market: Funds chant caution mantra

MUMBAI: Fund managers seem to be in no hurry to load up on shares, notwithstanding the 10% correction in stock prices over the last couple of

Money Matrix

Some sectors with potential

Why currency keeps fluctuating

Check out top gainers, losers and recommendations from analysts

weeks. While awaiting the upcoming Budget proposals before firming up their near-term investment strategies, most money managers expect the market to consolidate for the next six months at least.

Fair valuations, a long line-up of share issuances, an upward trend in interest rates and nervous world markets could neutralise positives like a steadily growing domestic economy and reasonably good fund flows from overseas players. At the same time, investors will be keenly eyeing corporate earnings while assigning an earnings multiples to the market.

“Fundamentals rather than (capital) flows will drive the market over the next six months; we are in for a phase of consolidation,” says Nilesh Shah, deputy managing director and chief investment officer, ICICI Prudential AMC, adding, “the market is fairly valued at 14.5-15 times forward (FY11) earnings.” BSE’s 30-share Sensex shed 120 points to close at 15,922 on Wednesday, and NSE’s 50-share Nifty fell 35 points to close at 4757.20.

Create new avenues of growth, development: Shashi Tharoor

Create new avenues of growth, development: Shashi Tharoor

Thiruvananthapuram, Feb 13: Asia should take into account the changing world economic scenario and leverage its comparative advantage to create new avenues of growth and development, Minister of State for External Affairs Shashi Tharoor said on Saturday. “Our endeavour should be to leverage our comparative advantage to build alliances, develop partnerships, create new avenues of growth and development and strengthen the existing ones,” said Tharoor while inaugurating the Asian Development Dialogue (ADD) on Asian Trade: The Way Forward. “We need to enhance our mutual investments, joint ventures and project participation,” he said. The conference debated on the present status of Asian trade and the road ahead for Asian countries in the trade and commerce scenario.

Amnesty to Kashmiri militants in Pakistan accepted: government

NEW DELHI, Feb 11: In a big confidence building measure for Jammu and Kashmir, the central government has accepted the state’s proposal of amnesty to Kashmiri militants in Pakistan who want to return home without weapons and want to join the mainstream, Home Minister P Chidambaram said on Thursday.

“The idea of granting amnesty to Kashmiri youth in PoK (Pakistan-occupied Kashmir) has been accepted. The idea must be translated into action now,” Chidambaram told reporters here.

The Home Minister said that the government was now considering how to carry out the process of their return which involves many points to be looked into. “There are many points for their travel back. Like identification, debriefing, rehabilitation and reintegration into the system,” he said.

The announcement will bring cheer to hundreds of families in the Kashmir Valley and other Muslim-dominated areas in Jammu region whose male members had crossed over to Pakistan-administered Kashmir for arms training in the early 1990s and were now willing to return without weapons. In Pakistani Kashmir they are living in pathetic conditions, doing petty jobs, many of them even begging, according to people who visit the area. They are craving to return home if government gives them amnesty but are fearing legal action in India.

India's IT-BPO market may touch $285 bn in 2020: Report

MUMBAI: India's IT-BPO market (including exports) could touch USD 285 billion in 2020 growing at a CAGR of 15 per cent.

The IT-BPO industry in India has achieved impressive growth rates over the past decade and stood at USD 71.6 billion in 2009, said the report prepared by KPMG and ASOCIO (Asian-Oceanian Computing Industry Organisation).

The report, `Asia-Oceania Vision 2020: Enabling IT Leadership Through Collaboration' was released here today at NASSCOM India Leadership Forum 2010.

The Bt Brinjal saga, when emotions ran high

The Bt Brinjal saga, when emotions ran high

New Delhi, Feb.9: India’s controversial Bt Brinjal saga has been a prickly issue confronting its agriculture when emotions ran high before the Government put the brakes today. And never since the days of the Green Revolution in the 1970s has a food crop aroused the curiousity of the Agriculture community as much as the country’s first genetically modified vegetable. For the man in the hot seat, Jairam Ramesh, who determines whether the country is ready to embrace genetically modified food crops, it was jumping out of the frying pan into the fire. Just few weeks back in December, he was involved in tortuous negotiations at the World Climate Change summit at Copenhagen.

Caught between pro and anti-Bt Brinjal groups, the silver haired minister wa

Emmbi Polyarns coming with an IPO of 95,74,000 shares

Emmbi Polyarns

* Emmbi Polyarns Limited is coming with a 100% book building; initial public offering (IPO) of 95,74,000 shares to raise about Rs 45 crore. The equity shares of Rs 10 each are being offered in a price band of Rs 40-45 per equity share.
* Up to 50% of the issue will be allocated to Qualified Institutional Buyers (QIB), including the 5% to mutual funds. Further, 15% would be available for non-institutional bidders and the remaining 35% for the retail investors.
* The issue will open on February 1, 2010 and will close on February 3, 2010.
* The shares will be listed on the BSE as well as NSE.
* The face value of the share is Rs 10 and is priced 4 times of its face value on the lower side and 4.5 times on the higher side. Minimum order quantity for bidding has been fixed at 150 shares and thereafter in multiples of 150 shares.
* Book running lead manager to the issue is Keynote Corporate Services
* Company Secretary and Compliance Officer for the issue is Ashvini Godbole.

Profile of the company:

Emmbi Polyarns was incorporated on November 29, 1994 under the Companies Act, 1956 as ‘Emmbi Polyarns Private Limited’. Emmbi first started off with trading activity i.e. trading in woven polyethylene and polypropylene bags. It subsequently backward integrated into manufacturing in the year 1997 and installed its first extrusion plant. Emmbi is premier and an established manufacturer of a wide range of woven polyethylene and polypropylene bags. It is an ISO 9000: 2008 certified company, with a legacy of over fifteen years of presence in the industry. It is the first non-European FIBC manufacturing company to be a part of European FIBC Manufacturing Association.

The company is engaged in the manufacture and sale of FIBC (Jumbo Bags) and woven sacks and various woven polymer based products like container liners, protective irrigation system, canal liners, flexi tanks, car covers, etc. It is promoted by the first-generation entrepreneurs, Makrand Appalwar and Rinku Appalwar. The company is one of the well established brands in the field of woven polyethylene and polypropylene product manufacturing industry. It has a track record of business in the field of woven sacks and Flexible Intermediate Bulk Container (FIBC) container liners, canal liners, protective irrigation systems, flexi tanks, car covers, which find large-scale application in the segments like cement and fertilizer. The manufacturing facility is located at Silvassa.

The company specializes in high strength, low GSM FIBC with high safety factor. It is among the first few global manufacturers to offer Jumbo Bags (FIBCs) with 130 GSM Bags, 5:1 safety factor for 1000 KG Safe Working Load and 160 GSM Bags, 6:1 safety factor for 1500 KG Safe Working Load. In addition to FIBC, the company manufactures various woven polypropylene products including small bags, box woven bags, roofing underlayment fabric, courier bags, ground covers, silt fence and geotextiles. It offers woven bags and fabrics in both PP and HDPE.

IPO Grading

CARE has assigned an 'IPO Grade 2' rating, indicating below average fundamentals, to the initial public issue of the company.

Proceeds is being used for

* Expansion of the present facility, to increase the present installed capacity from 5,000 MTPA to 17,800 MTPA;
* To meet the expenses towards market development; and
* Meet the working capital requirements of the company.

Industry Overview

The plastic industry in India has made significant achievements ever since it made a modest but promising beginning by commencing production of polystyrene in 1957. The potential Indian market has motivated Indian entrepreneurs to acquire technical expertise, achieve high quality standards and build capacities in various facets of the booming plastic industry. Phenomenal developments in the plastic machinery sector, coupled with matching developments in the petrochemical sector, both of which support the plastic processing sector, have facilitated the plastic processors to build capacities to service both the domestic market and the markets in the overseas.

The Indian packaging market is currently worth Rs 65,000 crore (approx $14 billion), which represents 2.3% of the world market with growth rate varying from 5% in some sectors to as much as 20% in sectors like flexible packaging, compared to 3% in developed countries. The packaging machinery sector involved in making packaging converting machines, product packaging machines and allied equipments have adopted modern technology are exporting the machines even to developed economies of the world. Over 40% of export is done by small and medium sector industries where the packaging industry has its major presence.

The Indian packaging industry is a combination of organized large Indian and International companies and the unorganised small and medium local companies. The organized sector of the industry may be less than 5% of the companies in the overall industry but it nevertheless controls over 70% of the market by volume. The organized sector operates in the laminated product segment such as form-fill-seal pouches, tetrapacks, and lamitubes.

Pros and strengths:

Good relationship with established players in the industry - The company enjoys a credible relationship with Hindustan Unilever, Tata Chemicals, ITC and Godrej Industries. It is well poised to benefit from this strong relationship with the industry players enabling the company to provide better services to its customers.

Multiple products - The company distributes a wide range of products such as flexible intermediate bulk containers, PP & HDPE woven sacks, box bags, woven polypropylene sheets and PP fibrillated twisted yarn. This allows the company to cater to the diverse demands of its customers and to consolidate and establish its presence across regions giving an edge over other players who are in one or few product.

New Products in pipeline - The company is in the process of entering new technical textile applications consisting of geotextiles, pond liners, canal liners, flexi-tanks, etc. these value-added products are well accepted in the western world and offer good realizations and margins as compared to its PP-based woven packaging products. Also, there is a good potential for concept products like rain water pond and woven PP canal liner in India, at the backdrop of water scarcity, drought, etc.

Wide selling and distribution network - The company has spread its operations in 11 states & Union Territories of the country. The sales and distribution of end product is directly handled from Mumbai and logistics is handled from Silvassa, while on the export front the company has a spread of customers in 14 countries in the four continents across the globe. All the material is dispatched from the NSCIT/JNPT Port.

Risks and concerns:

Raw material prices prone to price fluctuations - The company’s primary raw material for its products is petrochemical based and hence the prices are linked with international crude oil prices. Crude oil prices behave much as any other commodity with price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply. Any volatile fluctuations in the demand and/or supply of any and/or all such raw materials may impact the purchase price of the raw materials and will adversely affect the profitability of the company

Risk of customers using alternative product - The company’s products are used mainly by manufacturing companies, which require packaging materials. Demand for woven bags will reduce in the event that the customers decide to seek alternative packaging materials. This, coupled with the development of more alternatives, will adversely affect the business and profitability if the company is not able to respond to these changes. The products are also subject to the risks generally associated with new product introductions and applications, including lack of market acceptance and delays in product development. Any failure on its part to forecast and/or meet the changing demands of packaging businesses and manufacturing companies will have an adverse effect on their business, profitability and growth prospects.

Stiff competition - The company faces stiff competition, both from domestic as well as international fronts. In the domestic market its nearest competitors are Shankar Packaging, Flexituff, KCP Karur, JumboBag, and Jai Corp situated in different parts of the country. Apart from this, the company also faces competition in overseas market. In Europe -- there are companies like Ishbir, Unsa, Sunjut, Storesack, etc. These companies have size anywhere from $200 million to over $1 billion. Competition from existing domestic producers and potential entrants to the industry may adversely affect the competitive position and profitability.

Dependence on transport providers - The company is dependent on third-party transport providers for the supply of raw materials to its manufacturing units and delivery of the products to its customers. Disruption in services of third-party transport providers may affect the business operations thereby causing an adverse effect on the timely receipt of supplies of raw materials and the company’s ability to deliver its finished products to the customers on time, thereby adversely impacting our business.

Delay in the implementation of the project - The company proposes to purchase plant & machinery worth Rs 1739.15 lakh from the proceeds of this issue. But it is yet to place orders for plant & machinery required for its proposed expansion project and the implementation of the project is at a very preliminary stage. Any delay in procurement of plant & machinery, equipment, etc may delay the implementation schedule and may increase the capital cost and also affect returns from the project.

Outlook:

Emmbi is one of the well established brands in the field of woven polyethylene and polypropylene product manufacturing industry. It is the first non-European FIBC manufacturing company to be a part of European FIBC Manufacturing Association. The company has constantly shown growth in production and sales. It holds good relationship with its clients and has a wide variety of products and lots of products are in pipeline. The other advantage with the company is its wide selling and distribution network.

On the concern side, the company’s business is raw material price prone, its primary raw material is petrochemicals, whose prices are highly volatile and are largely governed by the OPEC countries, and this disadvantage also brings the risk of currency fluctuation. The company will always be facing the risk of its customers using the any alternative products. Apart from this the company faces stiff competition from domestic as well as the international players.

The shares are being offered in a price band of Rs 40-45, the issue would constitute 55% of the post issue paid-up capital of the company and the net issue to public would constitute 54.72% of the fully diluted post issue paid up capital of the company. The EPS of the company as per March 31, 2009 stood at 4.35, based on this the P/E of the company at its lower price band of Rs 40 stands at 9.20 while for the upper price band of Rs 45 it stands at 10.34, anyway better than the industry average P/E of 11.30. For the year ended March 31, 2009, the company reported net profit of Rs 1.36 crore up by 151.86% from Rs 53.81 lakh in the previous year. The company has reported net profit of Rs 1.21 crore in the first six month of this fiscal, though it cannot be the measure of the company’s future performance but still the growth can be said a healthy one. Still our view will be neutral for the issue keeping in mind the various short comings of the sector risky growth prospect.

Live Mint

Hathway Cable and Datacom coming with an IPO of 277.5 lakh shares

Hathway Cable and Datacom, cable television services provider, is coming with an initial public offering (IPO) of 277.5 lakh equity shares of Rs 10 each. The company is planning to raise about Rs 735 crore from the issue.

The issue will open on February 9, 2010 and will close on February 11, 2010. CRISIL has assigned IPO Grade 3/5 to the proposed issue, indicating average fundamentals of the IPO.

The company will be using the issue proceed to fund customer acquisitions; investment in the development of digital capital expenditure, services and set top boxes; investment in the development of broadband infrastructure, capital expenditure and services; repayment of loans; and fund expenditure for general corporate purposes

The book running lead managers to the issue are Morgan Stanley India, UBS Securities and Kotak Mahindra Capital Company.

Livemint

Texmo Pipes and Products coming with an IPO of 50,00,000 equity shares

Texmo Pipes and Products is coming with an initial public offering (IPO) of 50,00,000 equity shares of Rs 10 each in a price band of Rs 85-90 per share.

The issue will open on February 16, 2010 and will close on February 19, 2010. CARE has assigned IPO GRADE 2, indicating below average fundamentals to the Initial Public Offering of the company.

The company will be using the issue proceed for expansion of product range; setting up manufacturing facilities for injection mouldings/fittings and woven sacks; meeting long term working capital requirements and for General corporate purposes.

The book running lead manager to the issue is Almondz Global Securities Limited.

Source:http://money.livemint.com/

Rupee gains six paise against dollar in early trade

MUMBAI: The rupee today appreciated by six paise to 46.75 a dollar in early trade largely in line with other firm Asian currencies. At the Interbank Foreign Exchange (Forex) market, the rupee appreciated by six paise to 46.75 a dollar. The rupee ended lower 8 paise at 46.81/82 in the previous session.

Forex dealers said dollar's losses against other Asian currencies mainly supported the Indian rupee.

Dollar fell amid lower demand from oil refiners as the crude oil prices declined below 72 dollar a barrel in Asia.

Meanwhile, the benchmark Sensex fell 71.54 points, or 0.44 per cent to 15,864.07 points in early trade today.

TOI

Nitin Gadkari formally elected BJP President

STAFF WRITER 15:50 HRS IST

New Delhi, Feb 9 (PTI) Nitin Gadkari, who was acting President of the BJP since December, was today unanimously elected to the top post in the presence of the party brass, making him the youngest leader ever to occupy the chair.

Gadkari, 52, was the only candidate to file nomination for the post.

Nominations in his favour were received from 13 state party units while one proposal came from BJP Parliamentary Party.

BJP General Secretary Thawar Chand Gehlot, who was in-charge of the organisational elections, handed over the election certificate to Gadkari.

Though the poll process was a mere charade - as Gadkari has been propped up by the RSS - the party went by its constitution in completing elections to 19 state units to meet the criteria of holding polls in half of the states

Sensex up 90 points after initial losses at BSE

TAFF WRITER 11:20 HRS IST

Mumbai, Feb 9 (PTI) Reversing early trend, the Bombay Stock Exchange benchmark Sensex moved up nearly 90 points in late morning trade good buying in stocks, primarily IT shares, on the back of recovery in the Asian market.

The 30-share Sensex initially dropped to 15,862.90 after the US markets suffered a severe setback yesterday with the Dow sliding below the 10,000 mark. However, recovery in Asian markets cushioned any sharp fall.

The Sensex recovered afterwards to quote at 16,022.63 at 1110 hours, rising 87.02 points from its last close.

The NSE-50 share Nifty also looked up by 28.35 points to 4,788.75 at 1110 hours from yesterday's close.

IT stocks rose on bargain hunting after the recent fall.

However, banking shares declined on fears of a hike in interest rate following inflationary pressures in the domestic economy.

Asian indices were trading mixed in early today.

Recovery on track: GDP to grow at 7.2%

India’s gross domestic product (GDP) — the total income of all economic entities in the country — will grow at 7.2 per cent in 2009-10, an official forecast said on Monday, confirming signs of a turnaround amid worries about the drought-hit farm sector. Turning the corner

The GDP forecast put out by the Central Statistical Organisation (CSO), however, is a shade lower than projections by the Reserve Bank of India (RBI) and the Finance Ministry.

The ministry, in its mid-term review of the economy in December, had pegged the current year’s growth at 7.75 per cent while RBI had projected the economy to grow at 7.5 per cent.

“This is an advance estimate,” finance secretary Ashok Chawla said. “What we normally see when the final numbers come out for the third and fourth quarters (in May) is an upward bias and we are sure that the same is going to happen this year too.”

The latest data could set the tone for withdrawal of stimul-us measures announced last year to counter the downturn. All eyes will be on Budget 2010, to be presented later this month.

“In terms of what the future policy framework is going to be, I think you will have to wait for the budget,” Chawla said.

The bad news: agricultural production is expected to shrink by 0.2% as a result of last year’s drought.

Growth of the Indian economy slowed to 6.7% in 2008-09 after growing at close to 9% for four straight years before the meltdown hit home in September 2008.

A Chinese official said India had the potential to overtake China as the world’s fastest growing economy. China’s GDP grew by 8.7 per cent in 2009.

“India attaches more importance to knowledge and technology innovation in the development of the new-and-high tech industries,” said Dai Xianglong, chairman of China’s National Council for Social Security Fund, while speaking at the DSP Merrill Lynch Investor Conference in New Delhi. “In future, the economic growth rate of India is likely to exceed China’s.”

India Inc said it is too early to roll back the stimulus package.

“It is important to maintain the policy framework so as not to throttle the growth momentum,” said FICCI's President Harshpati Singhania.

Chief Economic Advisor Kaushik Basu said the data confirms the economy has turned round the corner. “It (advance estimate) confirms what earlier was a matter of speculation, that the country has clearly turned from the downturn,” he said.

The percentage growth under the eight categories of business activities for this fiscal are as under, with figures for previous fiscal in brackets:

- Overall gross domestic product: 7.2 (1.6)

- Agriculture, forestry and fishing: -0.2 (1.6)

- Mining and quarrying: 8.7 (1.6)

- Manufacturing: 8.9 (3.2)

- Electricity, gas and water supply: 8.2 (3.9)

- Construction: 6.5 (5.9)

- Trade, hotels, transport and communication: 8.3 (7.6)

- Financing, insurance, real estate business services: 9.9 (10.1)

- Community, social and personal services: 8.2 (13.9)

HT

Economy to grow at 7.2%, says CSO

NEW DELHI: The Indian economy will grow at 7.2% in 2009-10, said the Central Statistical Organisation (CSO) on Monday in its advance estimate, compared to the finance ministry's and RBI's projections of 7.75% and 7.5% respectively. In 2008-09, the economy grew at 6.7%.

The manufacturing sector is estimated to grow at 8.9%, compared to 3.2% in the last financial year. This, many economists feel, may push the government to phase out stimulus package in the coming Budget.

"We should say stimulus has succeeded and we should begin to phase it out now," Planning Commission deputy chairman Montek Singh Ahluwalia said even as the domestic industry strongly pitched for continuation of the tax concessions.

CSO's estimate — which is a bit lower than the finance ministry's projection — has not dampen the mood in the government. Even the sensex, which fell in the initial trading, recovered later and closed 20 points up at 15,936 after the announcement of GDP growth figure.

To achieve 7.2% growth in 2009-10, the economy is expected to grow at 7.4% in the second half as against a growth rate of 7% in the first half. This suggests the economic activities are picking up. Officials in the finance ministry are hoping that their projection of 7.75% will come true. Finance secretary Ashok Chawala said the current estimate of CSO is likely to be revised upward when the figures for third and fourth quarters will be released. He argued that this had happened earlier also.

The main reason behind the economy is estimated to grow at a lower pace is the negative growth in the agriculture, forestry and fishing and slowdown in the services. According to CSO, these sectors, which constitute 14.6% of the economy, will grow at -0.2% as against 1.6% in 2008-09. Community, social and personal services, which had grown at 13.9% in 2008-09, is estimated to grow only at 8.2% in 2009-10. Similarly, financing, insurance, real estate and business services also slowed down a bit to 9.9% as against 10.1% in 2008-09.

However Ahluwalia said that economy is back on 7% plus growth rate and expected it to clock better growth rate of 8% next fiscal.

TOI

Sensex fails to regain 16000-mark, ends in green

MUMBAI: In highly choppy trade, the BSE benchmark index Sensex failed to regain the psychological 16,000-mark today, despite ending in the positive terrain for the second day with a gain of 20 points, as funds continued to their selling spree in heavy-weight counters.

Tracking Asia, the Sensex opened 95 points down and shuttled between 16,061.41 and 15,651.99 before shutting the shop for the day up a paltry 19.96 points at 15,935.61, as Reliance and Infosys bucked the general downtrend. These two stocks alone carry nearly 23% weight in the index.

While the market remained low at the outset, a last-hour buying on better GDP projection and higher opening in European markets saved the market from any major fall.

The wide-based National Stock Exchange index Nifty ended almost flat gaining a paltry 3.15 points to 4,760.40, after swaying between 4,799.05 and 4,675.40 points. The index opened 26 points down following poor Asian cues.

The gains were led by capital goods, tech, bank and realty indices which rose between 0.56 to 0.31%; while metals, auto and healthcare counters lost between 1.38 to 0.11%.

The metal index suffered the most by shedding 1.38% to 15,392.80, after Tata Steel slipping by Rs 24.90 to Rs 533.80 and the biggest aluminum producer Hindalco sinking by Rs 5.30 to Rs 136.10. PTI RS SUN DP KPS BEN BEN 02081625 NNNN.

TOI

MCI threatens de-recognition of 11 medical colleges

NEW DELHI: The fate of 11 medical colleges is now hanging in the balance.

On Saturday, the Medical Council of India issued showcause notices to the college authorities, threatening them with de-recognition for failing to adhere to MCI norms despite repeated warnings.

These 11 colleges, which have two months to rectify their shortcoming or else get de-recognised, have among them over 1,300 MBBS seats.

Confirming this to TOI, MCI president Dr Ketan Desai said, "It is true that these colleges are facing de-recognition. When we carried out inspections, several deficiencies were noticed in these colleges in terms of teaching staff, number of resident doctors, patient load of the resident hospital and infrastructure."

Explaining the circumstances, Dr Desai said once medical colleges get recognition, they are reviewed by MCI every five years on whether the colleges are maintaining standards as stipulated by the MCI and upgrading their facilities.

If found lacking, the colleges are given a maximum of two years to rectify the shortcomings. A final showcause notice is issued when colleges don't adhere to the norms even at the end of the two years.

"In the next two months, if the 11 colleges don't put in place the required norms, we will recommend the withdrawal of recognition of the MBBS degree of these colleges to the Union health ministry," Dr Desai said.

The list of colleges under fire include GSVM Medical College (Kanpur), SN Medical College (Agra), MLN Medical College (Allahabad), Guru Gobind Singh Medical College (Faridkot), LLRM Medical College (Meerut), Maharashtra Institute of Medical Sciences (Latur), J N Medical College (Aligarh), BM Patil Medical College (Bijapur) and Vinayaka Missions Medical College Hospital (Pondicherry).

Meanwhile, MCI has also sent reminders to 30 other medical colleges across India for renewal of permission to run an MBBS course, failing which they will not be able to admit students in the 2010-2011 academic session. Under MCI norms, till a medical college gets recognised, it has to take permission every year for five years to admit MBBS students.

MCI, after inspection, recommends permission to the government of India to allow continuance of MBBS courses in such colleges.

"Around 30 medical colleges have been sent letters to apply for renewal of permission immediately or else the will not be able to admit students in the coming academic year," Dr Desai told TOI.

The maximum number of colleges in question in this category are from Kerala (7), followed by Uttar Pradesh (6) and Orissa (3).

Dr Desai added, "We have also sent notices to seven medical colleges regarding increasing of seats. While some of them have increased seats from 50-100, others want to increase it to 100-150. Colleges for five years are required to take renewal permission from MCI over this increased intake of students."

TOI

Economy to grow by 7.5% in 2009-10: PM

Prime Minister Manmohan Singh today said the economy is expected to register a growth rate of 7.5 per cent in this financial year (2009-10), up from 6.7 per cent a year ago.

In the current financial year, the growth rate of economy is likely to be 7.5 per cent," he said while addressing a meeting of the Chief Ministers on price rise here.

The economy, which had been growing at over 9 per cent, slipped to 6.7 per cent in 2008-09 following the impact of the global economic crisis triggered by the fall of investment bank Lehman Brothers in September 2008.

Driven by stimulus packages and easing of monetary policy, India's economy during the second quarter (July- September 2009-10) expanded by 7.9 per cent, much more than anticipated by any analyst or thinktank.

The RBI in its recent review of the monetary policy too projected a growth rate of 7.5 per cent for the current fiscal.

Finance Minister Pranab Mukherjee, while presenting the Mid-Year Review of the Economy had said that economy could grow in excess of 7.75 per cent despite the impact of drought and floods on agriculture output.

PTI

Indiabulls to develop 2,500-acre SEZ near Nashik

Nashik, Feb 6 (PTI) Diversified entity Indiabulls Group will develop a Special Economic Zone (SEZ) at Sinnar near Nashik in association with the Maharashtra Industrial Development Corporation.

The SEZ, which is to be located in the industrial corridor of Nashik, Sinnar and Igatpuri, will be spread over 2,500 acres, Kishore Gajabhiye of Indiabulls, who is heading the project, told reporters here last evening.

The multi-product enclave will have units related to auto components, medicine production, food, engineering and IT among others. It will also house an international trading centre, hotels, schools, entertainment park and hospital, he said.

The company, however, did not give the estimated investment or timeframe of the project. This will be Indiabulls' third SEZ after Mumbai and Pune.

The group's proposed 1,335 MW Thermal Power Project in Sinnar is likely to see investments of Rs 25,000 crore and create thousands of jobs, Gajabhiye said.

Markets breathe easy on US cues

STAFF WRITER 13:56 HRS IST

Mumbai, Feb 6(PTI) After two days of mayhem, the markets got a reprieve today on a special 90-minute session with the benchmark Sensex gaining 125 points on all-round buying driven by positive cues from the Wall Street overnight.

The Bombay Stock Exchange benchmark Sensex resumed higher by 142 points and touched an intraday high of 15,951.07 points before ending at 15,915.65, a net rise of 124.72 points or 0.79 per cent from its last close, when it crashed by 434 points on global cues.

Significantly, all the sectoral indices ended in the green, with the worst hit sectors in the past two sessions-- realty, metals, oil & gas and IT counters-- leading the rally.

The National Stock Exchange's 50-share Nifty also shot up by 38.60 points or 0.82 per cent to finish at 4,757.25 from its previous close, after opening over 42 points.

Shiv Sena burns effigies of Aamir, Shahrukh

The Shiv Sena has gone a step further after criticising Bollywood superstars Aamir Khan and Shahrukh Khan for supporting the inclusion of Pakistani cricketers in IPL. The police said that Shiv Sena workers have exposed their wrath against the actors by burning their effigies and toring their films posters at Regal Square in Mumbai.

Buzz up!
However, no arrest has been made in spite of the violent protest by the Shiv Sena. The party has also sent out a strong warning to the theatres in the city not to screen Shahrukh’s film My Name is Khan.

Siemens aims to raise market share in India to 10%

FRANKFURT (MarketWatch) -- Siemens AG /quotes/comstock/11e!fsie (DE:SIE 65.61, -0.47, -0.71%) , the German electronics and electrical-engineering conglomerate, said Tuesday it will invest more than 250 million euros ($348 million) in India over the next three fiscal years through 2012, thereby doubling its current annual investments. A major part of the money will be invested in renewable energy and value-priced products business, Siemens said. The company wants to increase its market share in India to 10% by 2012. Siemens said it has recently signed orders totaling over 500 million euros, primarily for energy technology. "Like many other nations around the globe, India is facing a green revolution. We have the products and solutions for the country and we want to further expand our position as a green infrastructure provider in India," said Peter Loescher, president and CEO of Siemens AG.