Corporate Announcement

The Finance Bill has expanded the definition of income that is taxable under the Income Tax Act, 1961, by inserting a sub-clause on subsidies, grant, cash incentive and duty drawback, etc. Subsidies, tax concessions and incentives that add to business income such as the one given for setting up plants in certain states may be taxed now, following a provision in the Finance Bill passed by the Lok Sabha recently. This could trigger yet another controversy pertaining to taxes.

India's manufacturing sector grew at a slower pace in April on weak domestic orders, an HSBC survey said, raising hopes for a rate cut by the RBI. The contraction in factory growth rate also resulted in some job losses and companies adopted a cost-cautious approach to hiring. The headline HSBC India Purchasing Managers' Index (PMI), compiled by Markit, stood at 51.3 in April, down from 52.1 in March, pointing to a weaker improvement in operating conditions across various industries.

Mutual fund managers pumped in over Rs 76 Bn in equity markets in April, making it their highest net inflow in more than seven years, mainly on account of positive investor sentiments and the government's reforms agenda.

Holcim Ltd, a Swiss company, and Lafarge SA, which is based in Paris, won US antitrust approval to merge after they agreed to divest assets. The companies agreed to divest plants, terminals and a quarry to gain approval of their $25 bn deal, the FTC said.

In a bid to make homes more affordable for people in Maharashtra, the state government is planning to start a 'housing fund' in which one can contribute a fixed amount of monthly earning for a certain period.

Under the new strategic plan, GM envisions capitalising on the relatively low labour costs in India and making the country its new global manufacturing and exporting hub, taking some strain off South Korea, where the labour costs have inflated by nearly a half over the past five years.

To facilitate better and efficient evacuation of coal from North Karanpura coalfield area of Central Coalfields Limited, the Ministry of Coal (Moc) signed a tripartite memorandum of understanding (MoU) with state government of Jharkhand and Ministry of Railways (MoR). The MoU is for the formation of a joint venture to undertake project development, financing and implementation of identified projects on equity basis.

SAIL and National Mineral Development Corporation (NMDC) would set up an ultra mega steel plant (UMSP) in Chhattisgarh's Bastar region.

Kishore Biyani's Future Retail Ltd and Bharti Retail Ltd have decided to combine their retail operations to create Rs. 150 Bn company in a move that accelerates the consolidation of India's organized retail trade.

An association of top energy firms like Reliance Industries, Cairn and BP has demanded separation of oil field contract administration from regulation and policy making to bridge the trust deficit between companies and the government.

DLF to raise about Rs 36 Bn this quarter through the issue of securities, backed by its IT-SEZ, as part of strategy to replace costlier debt.

Auto components maker Spark Minda, Ashok Minda Group formed a joint venture with US-based Vehicle Access Systems Technology (VAST) with an aim to widen global presence.

GMR Infrastructure said its parent firm GMR Holdings has pledged 14.41 percent stake in the company with IL&FS Trust Company (ITCL).

Larsen & Toubro has made a renewed bid to secure mining rights over Sijimali and Kutrumali bauxite deposits across Kalahandi and Rayagada districts after the enforcement of the Mines & Minerals (Development & Regulation) Act, MMDR Act, 2015. 

The Institute for Energy Economics and Financial Analysis has said the Adani group's coal, rail and port project in the Queensland province of Australia does not fit into India's changed energy policy climate. 

IDFC keen on raising rupee denominated offshore ‘Masala’ bonds and plans to increase provisioning till transition to bank.

State Bank of India is all set to launch an early warning system (EWS) to detect stress and help the bank tackle the issue before it becomes an NPA.

Uttam Galva seeks refinancing under RBI’s 5/25 scheme.

Bank of India’s rate cut to dent bank’s margins by 2-3 bps.

L&T Finance Holdings plans to raise Rs. 600 Cr via preferential shares.

BHEL has commissioned a thermal unit of KBUNL in Bihar.