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Monday,
November 5, 2001, Chandigarh, India  
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Property prices rise on periphery
FII net buyers in equities at 715.7 cr
Slowdown affects Q2 results |
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Bank deposits
a good option Post-retirement plan How to invest
TDS deduction
Overlook seniority, pay damages
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Property prices rise on periphery DESPITE the ongoing slump in the real estate , property business in the periphery areas is flourishing. The increasing number of builders starting new projects in these areas and increasing prices in and around Chandigarh are a witness to this. While trading in real estate has declined, those in business say the market has stabilised and there are genuine buyers in the market. “Today we are finding genuine buyers. And though trading is not very popular as it was earlier, the prices are increasing at a satisfactory pace”, said Mandeep Rahi of Silver City Constructions where plots are being offered on the Chandigarh-Ambala highway, NAC Zirakpur. A majority of the societies and builders are preferring area near Zirakpur and few in Kharar — these being in close proximity to Chandigarh. Silver City, for instance, a PUDA approved Indo-UK joint venture is located on Ambala Highway in Zirakpur. There are two plans in this case where plots are being offered 147 square yard and 700 square yards. There are others in and around Zirakpur including NK Sharma Enterprises, Gulmohar Estates, New Generation and Shivalik. “More people are buying houses in the periphery due to reasons like prices, and now better facilities available in these areas and proximity to the city”, said Mr Anil Bhardwaj, Project Engineer of Gulmohar Housing . Market stabilisation Several builders who had undertaken one project , are venturing into more projects stating market stabilisation as the reason. Raglan Constructions, for instance, have sold out houses under Gulmohar Complex project on Shimla Highway. Now they have started another project Gulmohar Estates where independent houses will be sold. Similarly, Swastik Constructions also are also offering flats in the third phase with houses in the first and second phase having been completely sold out. N.K. Sharma Enterprises have started two projects Defence Enclave in NAC Zirakpur and Savitri Enclave near the same area. “Recession discouraged trading. But the buyers are preferring the areas in periphery and price rise is satisfactory. It is not an unprofitable venture, if the location is right, it offers good returns to the buyer as well”, said Mr Sharma of N.K. Sharma Enterprises Similarly Shivalik Promoters and Developers which had earlier sold plots on Kharar Landran road are also into new project of selling plots there. “Situation has improved tremendously,” said Er Amardeep Singh Hira. The rates are fixed for each project and in the last 2-3 years also there has been an increase in the land rates in periphery . An increase of Rs 200-300 has been witnessed in this area around Zirakpur in the last two- three years, says Mr Sharma. The previous plots we sold out are today commanding premium between even more than Rs 300 per square yard within almost a year”, said Mr Hira of Shivalik Developers and Promoters. Now they are selling at Rs 2,100 per square yard , he said. Loan availability Availability of loans at easy terms and conditions has improved the situation — say builders. Almost all the builders and promoters are today offering flats, plots etc at easy financing facility. Most have tied up with banks and finance companies where loans are granted at easy terms and conditions. For instance, Shivalik Developers, Raglan Constructions and many others have tie ups with ICICI Bank, HDFC and other banks. ICICI Home Finance is offering home loans between Rs one lakh and Rs one crore . The banks are offering to finance even as much as 85 per cent of the cost of property or the cost of construction applicable. “Easy financing has helped the real estate industry improve a lot. In the ongoing recession, loans that are easily available are essential to boost the economy and initiatives by the banks, housing companies are really proving to be very helpful”, said Mr
Hira.
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FII net buyers in equities at 715.7 cr
Mumbai, November 4 The mutual funds (MFs) bought equities worth Rs 751.43 crore while offloading to the extent of Rs 1,425.84 crore, thus netting sales of Rs 674.41 crore in the reporting month, according to the data available with SEBI here. On the debt front, FIIs and MFs remained net buyers at Rs 168.7 crore ($ 35.4 mn) and Rs 977.16 crore respectively, it added. The foreign funds were net buyers in equities for 15 days with the highest being on October 11 at Rs 132.3 crore ($ 27.8 million) followed by Rs 94.2 crore ($ 19.8 mn) on October 8.
PTI
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by J.C. Anand Slowdown affects Q2 results THERE have been glamorous results declared by some top software companies. Even otherwise, leaders in various corporate sectors have done well. But when the results of corporate sectors as a whole are analysed, it appears that the picture is not very rosy. 1700 companies have so far declared their results for the July-Sept quarter so far. The results of 1500 companies have recently been analysed by Business Standard. For the first time in the last 14 quarters, sales of the corporate sectors have dropped by about 2.07 per cent. Net profit has gone down by 9.35 per cent. In many cases, the net profit was boosted by “Other Income”. If this excluded, the picture would be gloomier. It is quite on the cards that recessions will eat into the corporate sector profitability and sales would be much more. It has been estimated that the global trade will move down from 12 per cent to 2 per cent during this financial year. The Economist, the well-known British Weekly, has stated that the global “recession may well be deeper and longer than expected”. NIIT’s net profit has fallen by 57 per cent, but the management is hopeful of ending the current year at the same level of operating profit as last year. The textile companies in Punjab have not done well. While Vardhman Poly has suffered a loss in net profit, Vardhman Spinning’s net profit has been reduced to 2.16 crores from 5.58 crores (as it was in the second quarter last year). Mahavir Spinning’s net profit is also lower by more than 50 per cent at 8.07 crore, as against 16.30 crore (during the second quarter last year). Nahar Spinning has, however, more or less maintain its profitability with net profit of 1502.34 lakh, as against 1567.10 lakh, as it was during the second quarter last year. Nahar Exports have also not done well with its net profit down by 50 per cent. In order to provide more funds to the banks, the RBI, has cut CER from 6.5 per cent to 5.5 per cent, and bank rate have been reduced by half a point to 6.5 per cent. This is meant to provide more funds to the industry at a cheaper rate of interest. But this will help industry only if the industry undertakes expansion. Not many companies are
anxious to increase their production or to enter into the new ventures. It is quite clear that the corporate sector, as a whole, would be declaring lower dividends. The investors should keep away from the market for long term investments for the worst is still to come. The USA war against the Talibans is going to be a long-drawn affair and USA has already announced that major ground operations will be undertaken only during the spring season. This would deepen and prolong global recession. It would be good for investors to avoid export-oriented companies accepting the top software companies, which would just maintain their profitability. SEBI should take action against such delinquent companies as Vikas WSP and Pentasoft Graphics. Vikas WSP’s second quarter results are quite good but it has not paid 50 per cent interim dividend, which it had declared earlier. Nor has this company written to the shareholders and it has been remiss in this respect. The Pentasoft Graphics has paid dividend to a part of the shareholders only. Many Shareholders have not received it. |
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Bank deposits a good option Mr A.C. Antony, Assistant Manager, Accounts, Max Speciality Products, who has put in 15 years of service says he has transformed from an aggressive to a patient and careful investor. While at one time, he had even put in more than half of his savings in the equities, today he prefers keeping this percentage at around 10 per cent or so. This, only because of market conditions. He infact did not loose even after the major recessions in the market . He spoke to TNS about his investment planning. Initial investments
It was only after one- two years of my service that I started investing the equity market. There was no proper investment planning though, I bought a few scrips as I was interested in the share market. Old economy shares like Reliance, L&T were my major buys that time. I started studying in depth about the share market only around 1995 onwards.
Investment in equities
In 2000 I had major gains in shares like Global Tele which I had bought for around Rs 75 and sold off at even as high as Rs 3,200, then there was Himachal Futuristics (HFCL) which also
I sold off for almost Rs 1,400 a share that was bought for around Rs 70 . I also gained in DSQ and several other technology shares. Today I am holding DSQ, Infosys, PTL (which I am planning to dispose off as the tractor industry is not performing well), Global Tele and Sterlite. The main reason why I did not loose much in the share market despite the stock market crash was that I reduced trading during that period. I also don’t believe in holding a scrip for a very long time. I keep trading in them, though
of course the better ones, I sell a few shares and prefer keeping the remaining depending upon the company’s performance. Before investing one must keep in mind that the company’s should have strong fundamentals including good management and market sentiment should also be kept in mind. There are companies which perform opposite even if one of the two is negative but one should see both the aspects though I personally have not strictly adhered to the same.
Other investments
While I saved almost 30-40 per cent of my total income I invested half of it in the share market. The remaining around 20 per cent in bank deposits and the rest in Life insurance Policies and PPF. I also invested in mutual Funds and debentures. I had Kothari Pioneer (technology- growth option) and
Templeton. However, these days if one as to invest in Mutual Funds, debt funds are a better option that equity funds. If you are to invest in equity you should rather invest in them directly after studying the market.
Insurance
It is true that the primary purpose of buying an insurance policy should not be returns, but one can definitely try to go in for policies which offer good risk cover as well as good returns. This matters as the interest rates in the coming days are likely to fall.
Real estate
Real estate is not liquid and not a good investment option. So is gold. One should buy these for using hem and not for trading purposes.
Post-retirement plan
To have a regular income post retirement I have taken insurance policies like Jiwan Suraksha, where I will opt for the pension scheme. I have also put money in bank Fixed deposits. My children are school going so liabilities are yet to arise . However, major liabilities like a house, I have already met.
How to invest
Almost 40 per cent can be put in equities atleast during the first few years of ones service. This should be in blue chips or Indian Technology companies which I believe have a bright future. Bank deposits are a good option despite lowering of interest rates due to the security and liquidity factor attached to them.
(As told to Shveta Pathak) |
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by R.N. Lakhotia TDS deduction Q: I have received Rs 5000 interest on the principal amount of Rs 5000 on the maturity of Bonds in the financial year 2000-01. Rs 550 has been deducted at sources by the company under sections 193 interest on securities. Some one has told me that the TDS has been wrongly deducted. I have reported the matter to my employer. They have issued the form 16 on the basis of my salary. They have not included Rs 5000 in my Form 16 stating that my TDS has already been deducted by the company. Please clarify:- 1. Is the TDS deducted by the company is right? If no, how to claim refund. 2. How to fill the Saral form? In which columns I have to show this figure of Rs 5000 and other subsequent figures in the Saral form (Form No. 2D). Kuldeep Kaur, Ludhiana Ans: You should file your income-tax return and claim refund of the excess tax which wrongly been deducted. Your employer is not duty bound to include this amount in Form No 16.
Senior citizen Q: At what man and woman become senior citizens? I am told that man becomes senior citizen on completion 65 years age and a woman becomes senior citizen on attaining the age of 60 years for the purpose of Income-tax. Please clarify. (b) What are Standard Deductions and Income-tax rate + L.T. surcharge rates for various income slabs for Financial Years 2000-2001 and F.Y. 2001-2002. Also please clarify Income-tax exemption + I.T. rebate under various sections like 80L, 88A, 88B, 88C, 80U, 80G and tax rebate for senior citizen (man & woman) separately. Balwant Singh, Barsar (HP) Ans: The woman tax payers become a senior citizen just like men at the age of 65 years and not 60 years. The exemption amount of income from income-tax is Rs 50,000 for all individuals during the F.Y. 2000-2001 as well as F.Y. 2001-2002. The deduction u/s 80L is Rs 15,000 inclusive of interest on government securities during the F.Y. 2000-2001 and Rs 12,000 inclusive of interest of Government Securities during the F.Y. 2001-2002. The deductions u/s 80G and 80U are the same for both the years. Similarly, the tax rebate for both the years is the same.
Medical expenditure Q: I shall be very grateful if you kindly reply to the following queries at the earliest in The Tribune:- (a) Is it necessary to incur that much expenditure on medical treatment of a neurological disease, or would it suffice if only some travel expenses are incurred in connection therewith for availing the benefit of deduction of Rs 40,000 each u/s 80 DDB and 80-U; and (b) Would it make any difference if expenses are incurred but its major part is re-imbursed by the Punjab Government. (c) What is the minimum percentage of disability for becoming eligible to avail the benefit of deduction u/s 80DDB and 80U? (d) Is D.D.O. competent to allow the above mentioned deductions? Manjit Singh, Chandigarh. Ans: For claiming the tax deduction in respect of section 80DDB the amount should be spent for medical treatment of specified diseases or ailments as are prescribed in Rule 11DD(1). Similarly, in respect of section 80U, the deduction in case of permanent physical disability including blindness will be available if the disability falls in the categories mentioned in rule 11D of the Income-tax Rules. Please go through in greater details the above rules to get full idea about the percentage of disability for becoming eligible to avail the tax deduction under the above sections. The DDO is competent to allow the above mentioned deduction. If some reimbursement is received in respect of expenses and the assessee incurs expenses over and above the amount of reimbursement, he can still claim deduction under the above section. |
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by Pushpa Girimaji Overlook seniority, pay damages HERE is some positive news for students who are unfairly denied admission or a subject of their choice in a school or a college. In an order of far-reaching significance, the apex consumer court has directed a college that overlooked the seniority of a student in the merit list to pay the affected student Rs 18,000 as damages. The order throws open the process of admission in education institutions to the scrutiny of consumer courts. As per the order, Ms Deepa Ravi had applied to Mercy College,
Palakkad, Kerala, for admission to the B.Sc in mathematics. When she was called for an interview, she was told that seats for B.Sc mathematics had already been filled as per the merit list. However, since she was eighth in the merit list and the first seven had been admitted to the mathematics course, she would be the first student to qualify if a vacancy arose or if the college increased the number of seats in mathematics. In either case, she would be the first to be offered the seat. On this assurance, she got admission to B.Sc chemistry course offered by the college. However, she found soon after that the college had admitted five more students to mathematics, while she was not given that option. Her father then met the principal, reminded him of his promise and sought admission in the mathematics course for his daughter. The college did not accede to his request, forcing him to move Deepa to another college in
Ottapalam, where the subject of her choice was available. The father’s contention was that Mercy College had ignored his daughter’s seniority in the merit list and as a result he had to get her admitted in a college situated in
Ottapalam, thereby, incurring huge expenses for his daughter’s travel to the college, which he calculated at Rs 500 per month for three years. He also complained that the Mercy College had retained Rs 250 when he asked for refund of the fees paid by him towards his daughter’s admission there. When his complaint came up before the district Consumer Disputes Redressal Forum, the college argued that to meet the demand for seats in mathematics, the college had applied for marginal increase of 10 seats in the mathematics group to the university and in anticipation of the sanction, admitted some students under the management quota. Deepa was also offered a seat, but she declined it. The district forum, however, found on examination of the admission list that the college had not followed the university rules pertaining to admission. On of 24 seats the college had admitted nine students in the open merit list and here the sequence followed was not according to the list and students who below the rank of Deepa had been admitted. Even when the college announced its second list, Deepa was not given admission in the mathematics group. Holding the college guilty of deficiency in the service provided by it, the forum directed the college to pay Deepa Rs 18,000 as compensation and also refund the remaining amount of Rs 250 kept with them. The Kerala State Consumer Disputes Redressal Commission before which the college filed an appeal, set aside the order of the district forum on the ground that matters pertaining to education did not fall within the ambit of the consumer courts. The National Consumer Disputes Redressal Commission before which the father filed a revision petition, however, agreed with the findings recorded by the district forum. It, therefore, restored the order of the district forum and set aside that of the state commission. Be it a case of delivery of vehicles booked by consumers, allotment of plots houses or reservations pertaining to travel by air or rail, consumer courts have held that overlooking the seniority in the booking list is a clear case of unfair trade practice. It also constitutes deficiency in service and a consumer who suffers as consequence is entitled to compensation. But this is the first time that the national commission has looked at such deficiency with regard to admissions in education institutions. Even though the consumer Protection act came into being in 1986, till last year, the issue of applicability of the CP Act to education institutions had remained uncertain, thereby putting a big question mark on whether students and parents could use the provisions of the CP Act for redress against deficient services rendered by them. Finally last year, the apex consumer court’s order in the case of Bhupesh
Khurana. The Vishwa Buddha Parishad settled this issue when the court held that imparting of education for a consideration falls within the scope of “service” under the Consumer Protection Act. Since then, the national commission has given relief to students and parents in a number of cases involving education institutions. |
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Inflation falls CII team Luxury bus |
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