QBiz: Tata Motors’ Profit Tanks, Yash Birla in Tax Evasion List
Here is The Quint’s round-up of the top business stories.
1. Tata Motors Q4 Net Dips 56% to Rs 1,716 Cr
Homegrown auto major Tata Motors today reported a 56.19 % decline in consolidated net profit at Rs 1,716.50 crore for the fourth quarter ended March 31, as its domestic business continue to drag, while British arm Jaguar Land Rover also witnessed weak demand.
The company had reported a consolidated net profit of Rs 3,918.29 crore in the same quarter previous fiscal.
2. Offset Clause May be Eased to Speed Up Defence Deals
The government will allow defence procurement contracts to go through even if negotiations for offset agreements linked to them are not sealed, in a landmark change in rules aimed at cutting down the time taken in closing purchases, Economic Times reports.
The defence ministry has, however, mandated that winners of contracts must seal offset arrangements, under which they are required to set up local manufacturing units or enter into sourcing deals locally , within a year of signing the main deal.
3. Retail Stake in NSE Cos Zooms to 6-yr High
Retail investors’ holding in NSE-listed companies has hit a 6-year high of 21.35 per cent at the end of March 2015, with a valuation of nearly Rs 8 lakh crore, primarily due to a sharp jump in equity markets.
Interestingly, retail investors opted for smaller companies to invest as institutional investors typically gave them a miss.
4. Premium Fails to Deliver for P&G
The world’s largest consumer products company, Proctor and Gamble lost market share in more than two-thirds of its product categories in India during 2014-15 as rivals such as Hindustan Lever with lower-priced alternatives found more takers, according to the Economic Times.
Experts said this resulted from P&G’s lack of innovation and focus on higher margins amid aggressive strategies adopted by its rivals to increase their own market share.
5. Industrialist Yash Birla, 6 Others Named in Swiss Tax Evasion List
Industrialist Yash Birla and Gurjit Singh Kochar are among seven Indians whose names have been disclosed in Switzerland’s official gazette.
Kochar is the son-in-law of realty and liquor baron Ponty Chadha. The names have been made public with regard to the ongoing tax evasion prove in India.
Sayed Mohamed Masood and Chand Kauser Mohamed Masood, named in the famous City Limousines scam, Delhi-based businesswoman Ritika Sharma and two others -- Sneh Lata Sawhney and Sangita Sawhney-- are the other Indians whose names have been made public.
6. India, Japan to Resolve Transfer Pricing Disputes
India is set to sign agreements with Japan to resolve as many as 15 transfer pricing disputes. These agreements follow the one recently signed with the US. The agreements will be for cases that fall in the ambit of the mutual agreement procedure (MAP). Indian tax officials will travel to Japan next month to sign the MAPs.
The tax disputes involve Japanese companies in the automobile and auto ancillary sectors, as well as large trading houses. There are about 30 transfer pricing disputes between India and Japan; these pertain to determining royalty, tax dues, profitability of trading houses, and the commission paid.
7. Out of 5/25 Net, Punj Lloyd Seeks Rs 3,000 cr More
The cash-strapped diversified engineering, procurement and construction conglomerate Punj Lloyd is looking to reach out to banks for an extra Rs. 3,000 crore, says the Financial Express.
The firm is pursuing what is called a corrective action plan — a scheme by which a consortium of banks will supplement the existing lines of credit to help the company meet its reassessed working capital needs.
8. Record Rs 2.5k Cr Loss Seen on Cotton Buying
The government will likely incur record losses of around R2,500 crore on its cotton procurement operations, aimed at preventing distress sales by farmers, in the current marketing year through September, according to textile minister Santosh Kumar Gangwar.
The state-run Cotton Corporation Of India (CCI) procures the fibre from farmers at minimum support prices (MSPs) and sells the stocks later in the market. Any losses out of the procurement operation is reimbursed by the government.
9. ICICI, Axis Banks Cut Employee Headcount
After close to doubling their headcount in the past few years, leading private sector banks, ICICI and Axis Bank, have reduced their employee counts, the Business Standard reports.
Rajiv Anand, group executive (retail banking), Axis Bank, said that with more customers shifting to digital channels, the size of branches was declining. Therefore, these branches required fewer employees.
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