Warner Bros. cartoon characters introduce a specially equipped Chevrolet Venture minivan, opening a four-year marketing partnership between GM and Warner Bros., at a news conference at the Warner Bros. lot in Burbank, Calif., on Thursday. — AP/PTI

BSE to punish rogues
MUMBAI, Aug 6 — The Bombay Stock Exchange has decided to severely penalise companies for poor investor services and has already approached the Company Law Board and the Union Law Minister for the same.

Kargil impact: soft now, hard later
NEW DELHI, Aug 6 —The National Council for Applied Economic Research today cautioned that Kargil conflict could have serious long-term economic implications, but would have only a marginal impact in the current fiscal.

• Re falls to new low

India’s export growth rate highest in Asia NEW DELHI, Aug 6 — The growth rate of India’s exports is estimated to be among the highest in Asia during the current year, according to the latest foreign trade trends in the major trading nations of Asia, published in the Far Eastern Economic review. Two units evade excise CHANDIGARH, Aug 6 — The Chandigarh-II Commissionerate of Central Excise has confirmed the demand of duty of over Rs 4.70 crore from two processing units of Amritsar. Tax collection up 9 pc in first four months NEW DELHI, Aug 6 — Revenue collections continued to be buoyant with direct and indirect tax recording an over 9 per cent growth in the first four months of the current fiscal year compared to last year.

Actress Valerie Harper appears at the unveiling of a billboard featuring her and others in New York's Times Square on Thursday promoting Healthy Woman, a new over-the-counter soy supplement that claims to help relieve hot flashes throughout menopause. — AP/PTI

2:1 bonus by Cipla
MUMBAI, Aug 6 — Cipla Ltd, today decided to issue bonus shares in the ratio of two bonus shares for every one held.

Kargil impact: soft now, hard later

NEW DELHI, Aug 6 (PTI) —The National Council for Applied Economic Research (NCAER) today cautioned that Kargil conflict could have serious long-term economic implications, but would have only a marginal impact in the current fiscal.

“Unless ways of raising revenue or restructuring government expenditure are found, an increase (in defence expenditure) may have serious implications for the level of fiscal deficit in the future,” the independent think tank said in its latest quarterly update.

An increase in defence expenditure to 3 per cent of GDP from the current 2.4 per cent would mean an additional expenditure of nearly Rs 10,000 crore, NCAER said.

“Though a war cess may cover the Rs 1,500 crore spent on the Kargil conflict this year, it is unlikely that it can be continued and increased in the following years to meet the step-up in defence spending,” it said.

On the impact of Kargil on the current year’s fiscal position, it said the additional expenditure of Rs 1,500 crore due to the war was quite small compared to Rs 14,000 crore expenditure overruns in the Central Government Budget in 1998-99.

The research body said prices were expected to remain stable in the current fiscal as agricultural sector was performing well and the coming elections might further improve demand in the economy.

NCAER said the long period of pessimism generated by poor demand, declining industrial profits, depressed equity markets and overall economic and political uncertainty looked like giving way to distinct optimism about an industrial recovery.

Coming quarter was expected to witness a sharp increase in expenditure, both private and public, as the country went to polls.

“With inflation at a comfortable low and industry having unutilised capacity, the increase in demand is likely to be met by an increase in output rather than in prices,” it said.

Re falls to new low

MUMBAI, Aug 6 (PTI) — Sustained corporate dollar demand continued to exert pressure on the rupee and caused it to close at a new record low against the US currency in fairly active trade at the interbank foreign exchange market (forex) here today.

The Indian unit ended at Rs 43.4650/4750 per dollar, sharply lower from the overnight finish of Rs 43.41/42 and a new low logged for the closing quote in the current calendar year. The Indian currency had slumped to an all-time low of Rs 43.48/53 on August 19, 1998.

IndusInd on the prowl to marry foreign partner
By Nirmal Sandhu
Tribune News Service

CHANDIGARH, Aug 6 — IndusInd Bank is looking for a foreign bank collaboration. It has short-listed three banks to explore the possibility of 15 per cent equity participation and launch investment banking. The collaboration deal is likely to be finalised in October.

Announcing this in an interview here today, the bank’s Managing Director, Mr K.R.Maheshwari, said the foreign bank selection will be based on two conditions: it should have no presence in India. (This is to avoid conflict of business interests). Secondly, the bank should have expertise in investment banking.

Mr Maheshwari told The Tribune that IndusInd Bank plans to focus on infrastructure financing, venture capital, mergers and acquisitions. Internet banking is another area which is actively pursued.

For the benefit of its customers, the bank plans to install 100 to 120 ATMs at public places next year. Customers need not visit bank branches for withdrawals or deposits.

For senior citizens, the bank proposes to announce on August 15 a special scheme under which banking services will be offered at half the charges. Besides, Mr Maheshwari added, half a per cent higher interest will be given on deposits by senior citizens.

The Hindujas-run IndusInd Bank has the highest rate of NPAs at 7.2 per cent among the private banks. Mr Maheshwari attributed to this recession, liberalisation of imports, inactive primary market, political uncertainty and the bank’s desire to grow very fast. He hopes to bring down the NPAs rate to 5 per cent by the year-end.

Mr Maheshwari said the bank has set up an asset management department headed by the Vice-President of the bank to deal exclusively with the NPAs. Besides, the bank has initiated a compromise policy to settle outstanding dues. In certain cases the bank will insist on security.

The bank, which plans to open new branches at Phagwara and Gurgaon shortly, has started focussing on retail banking.

After taking over as Managing Director in October last year, Mr Maheshwari, who was earlier with the State Bank of India, found that wholesale banking was risky and raised the cost of deposits to 12.5 per cent. The thrust on retail banking has substantially reduced the cost of deposits.

India’s export growth rate highest in Asia

NEW DELHI, Aug 6 (UNI) — The growth rate of India’s exports is estimated to be among the highest in Asia during the current year, according to the latest foreign trade trends in the major trading nations of Asia, published in the Far Eastern Economic review.

According to this date, during February to April 1999, India recorded a growth of 5.8 per cent followed by Malaysia at 3.7 per cent, Philippines registered 15.2 per cent growth during January-March this year.

The comparable figures for the same period (February-April 1999) for seven other countries in the region have been negative.

They are China (March-May 2.3 per cent), Hong Kong (March-May 7.6 per cent), Indonesia (March-May 2.2), Singapore (Feb-April 9.7), S.Korea (March-May 1.3), Thailand (March-May 2.2), and Australia (Feb-April 9.9).

During the first quarter (April-June 1999) according to the provisional data available from DGCI and S. Calcutta, India’s export at $ 7.0 billion have been 6.50 per cent higher than the level of exports in April-June 1998.

Exports during the month of June this year were valued at $ 2.6 billion which was 11.14 per cent higher than the level of $ 2.3 billion in June 1998.

However, India’s imports came down during February-April this year to 5.8 per cent over that of the same period in 1998 at $ 9.9 billion.

Two units evade excise
Tribune News Service

CHANDIGARH, Aug 6 — The Chandigarh-II Commissionerate of Central Excise has confirmed the demand of duty of over Rs 4.70 crore from two processing units of Amritsar which indulged in the clandestine processing and removal of processed fabrics valued at Rs 53 crore during the period 1993-94 to 1995-96.

According to Mr Inder Raj Soni, Commissioner, Central Excise, Chandigarh-II, the scrutiny of the seized incriminating documents, correspondence with various government departments and balance sheets of these two units revealed that they had suppressed information about the use of machinery, steam and power for the processing of textile fabrics.

Mr Soni said these units neither obtained Central Excise licence nor filed statutory returns with the department during the period of 1993-94 and 1995-96.

Mr Soni revealed that these two companies were floated by the managing director of a registered textile processing unit for the evasion of Central excise. The two units carried dutiable processes on the man made fabrics with the aid of electricity, steam and machines for processing but they suppressed these facts from the department.

Besides the confirmation of demand for Excise duty of Rs 4.70 crore, the Commissionerate has also decided to impose a penalty of Rs 4.70 crore on these two units as well as a personal penalty of Rs 50 lakh on the managing Director and Rs 25 lakh on another registered textile unit, which connived with the above unit. Mr Soni did not rule out the connivance of local Central excise officers for which action is under way.

BSE to punish rogues

MUMBAI, Aug 6 (PTI) — The Bombay Stock Exchange (BSE) has decided to severely penalise companies for poor investor services and has already approached the Company Law Board and the Union Law Minister for the same.

“The BSE has proposed to restrict the period for transfer of shares to 21 days from the present 60 days and this is a feasible proposition given the success of dematerialisation”, BSE president Anand Rathi said in his address at a seminar on investor protection and awareness here today.

For delays in transfer as well as non-despatch of bonus or rights shares, the exchange would impose a penalty of Re 1 per share of Rs 100 or part thereof per week”, Rathi said.

In a landmark move, the country’s oldest stock exchange has also sought to penalise companies for non-payment of dividend at a rate of 2 per cent per month on the amount of the dividend.

Delays in despatching annual reports would also not be spared and will attract a penalty of Rs 100 per shareholder, he added.

BSE, which has filed winding up petitions on a number of companies for failure to meet obligations under the listing agreement, has also sought the setting up of a special bench in the Mumbai High Court to dispense with these petitions within six months of its admission.

Tax collection up 9 pc in first four months

NEW DELHI, Aug 6 (PTI) — Revenue collections continued to be buoyant with direct and indirect tax recording an over 9 per cent growth in the first four months of the current fiscal year compared to last year.

Total revenue collection, including both direct and indirect tax collections upto July this year stood at Rs 39,665 crore as against Rs 36,385 crore in the same period of last year, registering 9.02 per cent growth.

Indirect tax collections maintained its upsurge with excise collections touching to Rs 17,241 crore during the period, Rs 3,077 crore higher than last year. The excise collection during April-July was 21.72 per cent higher compared to last year.

Customs revenue collections grew by 10.99 per cent in the first four months to Rs 14,232 crore.

Total indirect taxes including those other than excise and customs was Rs 32,354 crore upto July this year as compared to Rs 27,901 crore in the same period last year, representing an increase of 15.96 per cent.

There was, however, fall in direct tax collections at Rs 7,311 crore as against Rs 8,483 crore last year in the four month period, mainly on account of a sharp decline in corporate tax collections.

2:1 bonus by Cipla

MUMBAI, Aug 6 (PTI) — Cipla Ltd, today decided to issue bonus shares in the ratio of two bonus shares for every one held. The bonus issue would, however, be subject to the approval of shareholders at the extra-ordinary general meeting to be held on September 3, immediately after the annual general meeting, the company announced following a board meeting here today.

The board also decided to increase the authorised share capital of the company from Rs 25 crore to Rs 65 crore, subject to the shareholders’ approval. The record date/book closure would be fixed in consultation with the concerned stock exchanges for determining the entitlement for bonus shares, a statement here said.

Bullion
Gold Std Rs 4020
Gold 22-Ct Rs 3870
Silver Ready Rs 8015
Silver delivery Rs 8015

FCI chief dead
NEW DELHI, Aug 6 (PTI) — Mr B. Narashimhan, Chairman of the Food Corporation of India, died here today following a brief illness. He was 57. Mr Narasimhan, who had been admitted to hospital with an heart ailment, is survived by his wife and two daughters, an FCI release said. He belonged to the Gujarat cadre of the IAS and had taken over as Chairman of the FCI in February, 1998.

Essar roaming
NEW DELHI, Aug 6 (UNI) — Essar Cellphone said today it has now agreements with 90 international and 24 national cellular networks to provide roaming services.

HOCL profit
NEW DLEHI, Aug 6 (PTI) — Hindustan Organic Chemical Ltd (HOCL) today announced a Rs 1.13 crore profit during the first quarter of the current fiscal as against a net loss of Rs 8.49 crore reported during the same period last year.

Contact lenses
CHANDIGARH, Aug 6 (TNS) — Bausch & Lomb has launched new Soflens Selective disposable contact lenses. Designed to suit all activities and lifestyle needs, the new contact lenses give the consumer the flexibility to select from a day to a seven day wear.