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Generic drugs to carry quality mark
Chandigarh, August 1
In a move to regulate quality in the Rs 35,000-crore generic drug market, the government now proposes to introduce quality mark for these drugs. The move will help consumers distinguish between quality and substandard medicines.

Auto makers continue uphill drive in July 
New Delhi, August 1
Defying fears of a deficient monsoon affecting sales, major auto makers in the country registered a healthy growth rate in domestic sales in July, thereby continuing with the positive trend that began this year.

Power cuts plague hosiery industry 
Ludhiana, August 1
The hosiery industry of Ludhiana is a victim of frequent power cuts and voltage fluctuations. For less than a dozen large-scale units, the city houses approximately 12,000 small and medium enterprises. The industry employs about five lakh workers and accounts for more than Rs 1,200-crore exports annually out of a total of more than Rs 8,000-crore business.


EARLIER STORIES



The prices of diesel and gasoline is seen at a Chevron gasoline station in California on Friday. Chevron Corp posted a 71 per cent drop in profit on weaker energy prices and fuel demand due to the economic slump, but it raised estimated 2009 output and said cost cuts were on track.
The prices of diesel and gasoline is seen at a Chevron gasoline station in California on Friday. Chevron Corp posted a 71 per cent drop in profit on weaker energy prices and fuel demand due to the economic slump, but it raised estimated 2009 output and said cost cuts were on track. — Reuters

Corporate Results
GMR Infra Q1 net dips 70%
Mumbai, August 1
Infrastructure company GMR Infrastructure today said its consolidated net profit declined by 69.92 per cent to Rs 22.53 crore for the first quarter ended June 2009, over the same period last year. On a standalone basis, the company has posted a decline of 91.50 per cent in net profit of Rs 3.56 crore for the quarter ended June, over the same period last year.

Investor Guidance
Retired liable to pay advance tax

Q For a retired person is it necessary to pay quarterly advance tax on the earnings out of investments in the FDs, securities and postal schemes or can he pay yearly tax once only in March every year?

Aviation Notes
Allow AI free hand & see  it fly high
The aviation analysts are of the firm belief that the proposed bailout will not help the Air India to stage a come-back in its image, reputation and profitability. Instead, the mammoth induction of money will spread complacency and politician and bureaucrats will continue to misuse funds and perks.

 

 





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Generic drugs to carry quality mark
Ruchika M Khanna
Tribune News Service

Chandigarh, August 1
In a move to regulate quality in the Rs 35,000-crore generic drug market, the government now proposes to introduce quality mark for these drugs. The move will help consumers distinguish between quality and substandard medicines.

According to sources in the Ministry of Health and Family Welfare, the proposal has been mooted in order to check the growing incidence of spurious generic drugs being detected in the market. “Since generic drugs are not patented, these can be manufactured without paying royalty. Since food items and almost all other manufactured goods get a quality certification (Agmark or BIS certification), we have proposed that generic drugs, too, should get quality certification as these are life-saving,” said the official, requesting anonymity. He said this was part of the efforts being made by the ministry to monitor the quality of drugs sold in the country.

The idea of introducing quality mark for generic medicines was first proposed by the Pronab Sen Committee. It had said a number of small scale units were manufacturing generic medicines, often ignoring quality. The proposal was also supported by the Planning Commission in its earlier recommendations for the 11th Five-Year Plan.

The move, however, has not been taken too kindly by the 5,000-odd small scale pharma companies. These companies see the move as being pro-big pharma units and as to eliminate competition being provided by them. These firms say since they have little expense at their disposal, they would not be able to implement good manufacturing practices (GMP) or apply for and get certification. If big companies get the quality logo, they will get major chunk of the business and SMEs will have to close shop.

The SME Pharma Industries Confederation has now taken up the matter with the government. In a letter to the Prime Minister, the confederation has said small pharma companies would not be able to afford the certification. “We are already working with thin margins, especially after the mandatory upgradation as per GMP; increase in regulatory expenses; and, being deprived of supplying medicines for government orders on the pretext that the turnover is less that Rs 50 crore. Instead of turning us out of business, the government should upgrade its own vigilance mechanism for checking spurious drugs,” said Jagdeep Singh, president of the Punjab Drug Manufacturers’ Association. 

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Auto makers continue uphill drive in July 

New Delhi, August 1
Defying fears of a deficient monsoon affecting sales, major auto makers in the country registered a healthy growth rate in domestic sales in July, thereby continuing with the positive trend that began this year.

All the major carmakers such as Maruti Suzuki India, Mahindra & Mahindra and Honda Siel Cars saw their sales for July moving northwards.

In the two-wheeler segment as well, all the major players, led by market leader Hero Honda, witnessed a rise in their sales.

Domestic sales of the country's largest auto maker Maruti Suzuki grew 33.36 per cent to 78,074 units in July from 58,543 units in the same month last year.

Mahindra & Mahindra's total sales were up at 22,463 units as against 17,302 units in the year-ago period, up by 26.90 per cent.

Carmaker Honda Siel Cars India posted a 11.99 per cent rise in its sales at 4,857 units in July as against 4,337 units in the same period last year.

In the two-wheeler segment, market leader Hero Honda's total sales jumped by 30.39 per cent at 3,66,808 units in July compared with 2,81,317 units in the same month last year.

Chennai-based TVS Motor Company reported a 2.07 per cent increase in its total two-wheeler sales at 1,20,994 units as against 1,18,545 units in the same month last year.

However, TVS Motor reported a 20.44 per cent fall at 42,998 units in motorcycle sales last month as compared to 54,042 units in the same month last year. Suzuki Motorcycle India saw its sales climbing by 20.35 per cent at 12,585 units compared with 10,457 units in the same month last year. — PTI

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  Power cuts plague hosiery industry 
Sanjeev Singh Bariana
Tribune News Service

Ludhiana, August 1
The hosiery industry of Ludhiana is a victim of frequent power cuts and voltage fluctuations. For less than a dozen large-scale units, the city houses approximately 12,000 small and medium enterprises. The industry employs about five lakh workers and accounts for more than Rs 1,200-crore exports annually out of a total of more than Rs 8,000-crore business.

Sudershan Jain, director of the Ludhiana Integrated Textile Park, said: “Except a makeshift arrangement devised by certain local service providers, there is no permanent solution to snags in the cards and panels of the machines. These carry a blueprint of the design, pattern and colour scheme of the final product. A repair costs between Rs 80,000-Rs 1,00,000.”

The affected machinery being employed for the hosiery production includes a stall, a German flat bed computerised knitting machine and a Chinese circular knitting machine. Versions of these machines also come from Switzerland and Japan. "Following make-shift local repairs, companies have to contact the offices abroad who provide the final solutions. Certain repairs take more than a week", Narinder Miglani, an entrepreneur said.

Venod Thapar, president of the Ludhiana Knitwear Club, said: “Besides, software losses, sudden power tripping and fluctuations also cause heavy mechanical losses. Besides a regular power supply, the government also needs to cut power tripping and big fluctuations.”

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Corporate Results
  GMR Infra Q1 net dips 70%

Mumbai, August 1
Infrastructure company GMR Infrastructure today said its consolidated net profit declined by 69.92 per cent to Rs 22.53 crore for the first quarter ended June 2009, over the same period last year. On a standalone basis, the company has posted a decline of 91.50 per cent in net profit of Rs 3.56 crore for the quarter ended June, over the same period last year.

Suzlon Energy

Wind power major Suzlon Energy has reported a consolidated net loss of Rs 452.67 crore for the first quarter ended June 30. The company had a net profit of Rs 9.3 crore in the same period last year. It reported a total income of Rs 4,171.35 crore in the latest quarter. It had a total income of Rs 3,126.97 crore in the same quarter previous fiscal.

Adlabs Films

Anil Ambani-led Adlabs Films has said its consolidated net loss stood at Rs 63.69 crore for the first quarter ended June 2009, while it had a net profit of Rs 2.32 crore in the same period last year. Total income stood at Rs 104.79 crore in the latest quarter, against Rs 228.97 crore in the same period last year, Adlabs Films said. — PTI 

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Investor Guidance
Retired liable to pay advance tax
by A.N. Shanbhag

Q For a retired person is it necessary to pay quarterly advance tax on the earnings out of investments in the FDs, securities and postal schemes or can he pay yearly tax once only in March every year?

YM Wadia

A All taxpayers are required to pay advance tax in spite of the fact that most of their income is subject to TDS.

If the tax payable for the year is Rs 5,000 or more (raised to Rs 10,000 by the recent FA09), advance tax is payable without having to submit any estimate or statement of income to the ITO in three instalments during each FY as follows:

On or before September 15: 30% of estimated tax.

December 15: 60% less tax already paid.

March 15: 100% less tax already paid.

TDS is treated as advance tax paid.

Medical reimbursement

Q I am a senior citizen, doctor and govt pensioner. I am suffering from intestinal cancer and underwent surgery at the PGI, Chandigarh. I incurred expenses over Rs 1,00,000 on treatment. Thereafter, I have to go to Chandigarh periodically for treatment and follow up with one attendant (driver) who drives my personal car. Please clarify the following:

a) During the year I underwent operation and claimed deduction of Rs 60,000 under Section 80DDB in my IT return and ITO raised no objection. Now my tax adviser says since ITO had not raised any objection and the claim stands allowed, ITO cannot disallow deduction of Rs 60,000 under Section 80DDB in subsequent years. Please clarify whether the version of my tax adviser is correct? If not, what is the correct method? Which is to be deducted from total income the exact amount spent on medicines or Rs 60,000?

b) If the cost of medicines is reimbursed by the government, can I still claim the deduction of amount spent on medicines or Rs 60,000 be claimed under Section 80DDB?

c) Whether expenditure on my travel by car, including driver and hotel stay charges, can be claimed deduction under Section 80DDB?

— RL Parmar

A Section 80DDB states that a resident assessee shall be allowed a deduction of Rs 40,000 if he has, during the previous year, actually incurred an expenditure for the medical treatment of such disease or ailment as may be specified in the rules for himself or a dependent relative in case of an individual or for any member of an HUF, in the case of an HUF. The assessee has to furnish a certificate from a prescribed authority. Senior citizens are eligible for higher deduction of Rs 60,000.

The amount of deduction is ‘Rs 40,000’ and not ‘up to Rs 40,000’. We feel that the deduction allowed would be Rs 40,000 irrespective of whether the actual expenses incurred are less or more. However, be guided by the fact that the assessee is required to ‘actually incurred an expenditure for the medical treatment of such disease or ailment’. Again we feel that the expenses incurred by you for travelling to and fro between your residence and hospital is an expense incurred for treatment.

IT return

Q I am a chief engineer with a foreign shipping company. Till last year I was with Shipping Corporation of India, so I was filing return and paying income tax only for the salary received in Indian currency and that too if the stay in Indian waters was for more than 182 days. If I have to file my return this year, as I have received my salary in my NRE account, and my stay in India was for about four months. If so, which form needs to be filled?

— PS Dhami

A Since your stay in India in the current year is four months or around 120 days, you will be an NRI this year. As an NRI, only your Indian income will be taxable and not what you earn on ship as an NRI. Therefore, if your Indian income is not more than the basic exemption limit of Rs 1,60,000, then you need not file the tax return.

The authors may be contacted at wonderlandconsultants@yahoo.com

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Aviation Notes
Allow AI free hand & see  it fly high
by K.R. Wadhwaney

The aviation analysts are of the firm belief that the proposed bailout will not help the Air India to stage a come-back in its image, reputation and profitability. Instead, the mammoth induction of money will spread complacency and politician and bureaucrats will continue to misuse funds and perks.

The in-depth study of the health of the airline reveals that most of the 'blues', particularly dwindling of financial muscle, are on account of the politicians and bureaucrats who have been having the best of sailing in high and low flights.

1) Enormous ratio of more than 200 persons per aircraft instead of about 125 exists.

2) Injudicious buying of aircraft and thoughtless route functioning.

3) If non-entity officers are enjoying lucrative postings, perks and facilities, it is because of the politicians and bureaucrats and not because of departmental heads.

4) Over-head expenses have been jacking up at jet speed.

5) While the deserving staff is deprived of the legitimate travelling in specified class, the politicians, bureaucrats and their families have been availing freebies, luxurious flights, expensive lodging, cars and other facilities with monotonous regularity.

6) The airline has been flying on uneconomic routes after needlessly withdrawing from flying on lucrative routes at home and abroad, it is at the behest of these politicians and bureaucrats and caring little of the data provided by marketing and commercial experts.

There are dozens of other factors which have stood between the airline and its progress. In all aspects, the experienced and competent staff have no say. The fall of the airline from 'grace' to 'disgrace' has been, according to experts, because the airline is not an independent, commercial and professional vehicle’ but a 'personal property’ of a few at the helm.

As said before, it is repeated that the airline should be given complete freedom to run its affairs freely. It will, then, make a grand 'somersault' from struggling at ground in dirt to open and refreshing skies, Indian and foreign.

The ball is in the court of the government. This is the challenge, thrown by commanders, engineers, commercial and marketing directors, members of cabin crew, public relations officials and the unions.They plead for a chance to help bring about transformation in the airline and Indian aviation industry. 

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