Tata Power to benefit from CERC order, says Moody's

"The tariff increase will reduce CGPL's financial losses and benefit Tata Power Company's (TPC) credit quality. CGPL is a material part of TPC group and its debt accounted for approximately 30 per cent of total consolidated debt as of 31 March 2013," Moody's Investors Service said.

Global rating agency Moody's today said CERC order on Mundra project would benefit Tata Power 's credit quality. The 4,000 MW Mundra project is being operated by Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of Tata Power.

"The tariff increase will reduce CGPL's financial losses and benefit Tata Power Company's (TPC) credit quality. CGPL is a material part of TPC group and its debt accounted for approximately 30 per cent of total consolidated debt as of 31 March 2013," Moody's Investors Service said.

Also Read: CERC ruling to bring down Mundra project losses: Tata Power

Last Friday, India's central power industry regulator issued a tariff order granting CGPL, a tariff increase retroactive from April 1, 2013 to cover fuel costs. "Central Electricity Regulatory Commission (CERC) also ordered CGPL's customers to pay back losses that CGPL incurred in the fiscal year ended 31 March 2013, via 36 monthly instalments," it added.

The CERC has allowed a compensatory tariff of Rs 0.524 for every unit of power from Mundra plant. This tariff is for the period beyond April 1, 2013. It has also directed the procurer states to pay a compensation of Rs 329.45 crore for the period from April 1, 2012, to March 31, 2013. Electricity from Mundra project is supplied to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The power purchase agreements with distribution companies (discoms) from these states is for selling electricity at a price of Rs 2.26 per unit.

Mundra project has been hurt by rise in price of Indonesian coal that is used to fire the plant. Moody's said the tariffs under CGPL's current power purchase agreements do not allow it to fully recover the cost of fuel and consequently have dragged on Tata Power's group performance.

"TPC took an Rs 18 billion (USD 331 million) impairment relating to its CGPL investment in fiscal 2012 and another impairment of Rs 8.5 billion (USD 156 million) in fiscal 2013," Moody's Investors Service said. According to the agency, CGPL can only partially pass through this coal-fired plant's fuel costs to customers, given the terms of the power purchase agreements. "Although the tariff structure for CGPL's power purchase agreements includes fixed and variable elements, only 45 percent of the variable portion relating to coal fuel costs can be passed on to customers," it added.

Tata Power stock price

On February 26, 2014, Tata Power Company closed at Rs 79.45, down Rs 1.5, or 1.85 percent. The 52-week high of the share was Rs 102.45 and the 52-week low was Rs 68.25.

The company's trailing 12-month (TTM) EPS was at Rs 4.51 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 17.62. The latest book value of the company is Rs 51.67 per share. At current value, the price-to-book value of the company is 1.54.

23.07 | 0 komentar | Read More

CSR Rules Notified

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

Published on Thu, Feb 27,2014 | 20:43, Updated at Thu, Feb 27 at 20:47Source : Moneycontrol.com 

The Ministry of Corporate Affairs has notified the Corporate Social Responsibility Rules. The Rules define net profit, provide clarity on constitution of the CSR committee; expand activities under Schedule VII, provide clarity on applicability to foreign companies and what qualifies as CSR expenditure.

Twitter

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.

23.07 | 0 komentar | Read More

Modi speech to industry may not stir market: Quantum's Dutt

In a panel discussion on CNBC-TV18, Dutt said the market was not over-leveraged on Modi, and that investors were not taking for granted a BJP victory in the upcoming polls.

BJP leader Narendra Modi's speech is unlikely to move market on Friday, feels Sanjay Dutt, Director, Quantum Securities.

In a panel discussion on CNBC-TV18, Dutt said the market was not over-leveraged on Modi, and that investors were not taking for granted a BJP victory in the upcoming polls.

On the vision outlined to industry captains at the India Economic Convention 2014 in New Delhi, Dutt said implementation was more important than familiar platitudes.

"While there's no doubt about the fact that markets would love and I also would respect Modi and would want Modi to come to power with a very good majority but we need to move beyond the platitudes. We need to move more into implementation that exactly where everyone lacks," Dutt said.

"It is very easy to say that we need to do away 10 laws and have one law but do you have the parliament mandate? Would be able to do away 10 laws, how are we going to do it? It is very easy to say to have a federal structure but how will be implement it?," Dutt asked.

23.07 | 0 komentar | Read More

Rahul Gandhi to address public rally in Gujarat on March 11

"The Congress party will begin its state-wide campaign against the BJP government's corruption from March 4 to March 11 by organising a padyatra in all the 26 constituencies," Gujarat Pradesh Congress Committee president Arjun Modhvadiya said.

As a part of the party's campaigning for the 2014 general elections, Congress vice-president Rahul Gandhi will address a public rally on March 11 at Balasinor town of Kheda district in Gujarat. "Congress vice-president Rahul Gandhi will address an election rally at Balasinor on March 11," Gujarat Pradesh Congress Committee president Arjun Modhvadiya announced here today.

Also Read: BJP will eliminate archaic laws if it comes to power: Modi

"The Congress party will begin its state-wide campaign against the BJP government's corruption from March 4 to March 11 by organising a padyatra in all the 26 constituencies," Modhvadia said. "On the last day, Rahul Gandhi will address the people about the achievements of the UPA government and welfare schemes introduced during two terms," he said.

"Congress will make people aware about the Centre's welfare initiatives like the Right to Food, Mahatma Gandhi National Rural Employment Guarantee (MNREGA), Right to Information and the Forest Rights Act," he said. "During the one week padyatra programme in all the 26 constituencies, the Congress will approach people from both rural and urban areas to expose the BJP's corruption to them," the party leader said.

The Congress would also hold a public awareness campaign against former MLAs who quit the party to join BJP. "Prior to that, on March 2, Congress party leaders and workers will visit the Abdasa and Mandvi assembly seats of the Gujarat assembly to expose MLAs who switched over to the BJP," party spokesperson Manish Doshi said. "We will inform the masses that leaders who betray the party are betraying the people," Doshi said.

23.07 | 0 komentar | Read More

Truck financier Shriram Transport enters used-car space

Used-truck financier Shriram Transport Finance (STF) today said it has entered the pre-owned car segment through its 'auto malls'.

Used-truck financier  Shriram Transport Finance (STF) today said it has entered the pre-owned car segment through its 'auto malls'.

"We were financing passenger vehicles under our commercial vehicles business, but now we have started doing passenger cars exclusively, wherein an individual can buy or sell using our auto malls," STF Managing Director and Chief Executive Umesh Revankar told PTI.

The business kicked-off about six months back and STF is clocking Rs 50-crore turnover a month, which it aims to ramp up to Rs 100 crore by September, he said, adding at present the average ticket size per transaction was around Rs 2 lakh.

However, he clarified that entering the used car space had nothing to do with the slump in the truck business due to economic woes and called it an expansion of overall business.

The mall will act as a catalyst for bringing together the buyer and the seller, Revankar said, adding once the deal is sealed, the company will help the buyer with financing.

STF is primarily looking at institutional sellers like manufacturers/dealers, banks who have taken possession of the car for non-payment of loan by a borrower and fleet owners.

Buyers largely consist of individuals buying their first car manufacturers like Maruti ,  M&M and Hyundai already have a presence in the used-car selling space, while there are other dedicated chains and online portals as well.

Revankar, however, said unlike the fixed prices for vehicles, the malls have a system of buyers bidding at a pre-determined time after checking the vehicle. "We offer full transparency and genuine price discovery," he said, adding the company is also tying up with many existing sellers.

Additionally, the company is also partnering with car makers for a deeper penetration.

"Car dealers offer a 'buyback' when someone is upgrading car. They can come to the mall to sell the used car at any time. Our idea is to tie-up with the manufacturers so that their dealers can associate with us," Revankar said.

He said the company has already tied up with one car manufacturer and was in talks with some others. He did not name the manufacturer.

In FY'13, the company earned a post-tax profit of Rs 13 crore from the auto mall vertical, which Revankar said will be flat in FY'14 but rise considerably in FY'15.

STF is planning to double the number of auto malls to 60 by March 2016 from the current 31, he added.

Shriram Trans stock price

On February 26, 2014, Shriram Transport Finance Corporation closed at Rs 590.40, down Rs 0.5, or 0.08 percent. The 52-week high of the share was Rs 841.80 and the 52-week low was Rs 465.20.

The company's trailing 12-month (TTM) EPS was at Rs 58.38 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 10.11. The latest book value of the company is Rs 317.11 per share. At current value, the price-to-book value of the company is 1.86.

23.07 | 0 komentar | Read More

Real-estate cos' ponzi scam worth over Rs 45,000 crore: CBI

CBI today claimed the documents recovered by it during searches at the premises of Delhi-based business groups PACL and PGF show they allegedly used ponzi scheme to cheat nearly five crore investors of Rs 45,000 rpt Rs 45,000 crore.

In its case against PACL and PGF, CBI has named PGF DirectorNirmal Singh Bhangoo andn PACL Director Sukhdev Singh besides six other directors of the companies.

The groups had allegedly raised investments from over five crore gullible investors through collective investment scheme under the garb of sale and development of agricultural land, CBI spokesperson said here today.

She said that after preliminary analysis of documents the agency came to know of the enormity of the scam.

In Ponzi schemes, returns are given to investors from the money collected from other depositors in a pyramid-like structure.

"Initial investigation by CBI has revealed an alleged scam to the tune of Rs 45,000 crores in a case relating to an alleged fraud by Delhi-based private company and others through raising investments...through collective investment scheme under the garb of sale and development of agricultural land," CBI said.

PACL and PGF did not respond to emails sent seeking their comments.

The sources said CBI at first did not realise the gravity of the scam and it was only when some laptops were opened they came to know that their earlier estimates about the size of the scam were just a tip of the iceberg. CBI sources said the agency had carried out an inquiry, on the orders of the Supreme Court, into allegations that the companies had collected crores of rupees through deposits from public at large through their ponzi scheme promising land.

CBI sources said that during the searches it has recovered documents which show benami properties worth crore in India and abroad. The investments made by the company in a hotel in Gold Coast, Australia, have also come under the scanner of CBI.

The spokesperson said CBI has found prima-facie evidence which shows that PGF, having an office in Pashchim Vihar in West Delhi, has raised investments by issuing bogus land allotment letters to induce the investors.

"It was revealed that PGF, on being directed by the High Court of Punjab and Haryana to wind up the scheme and refund the money to the investors, a similar fraudulent scheme was operated under the name of PACL with office at Barakhamba Road," CBI alleged.

It is alleged that funds collected from new investors of PACL were used to repay the earlier investors of PGF to stave off criminal prosecution. The agency has carried out searches at the offices of PGF and PACL at their offices in New Delhi, Chandigarh,
Mohali, Ropar and Jaipur.

CBI sources said the accused persons have been called to appear for questioning even as a preliminary round of interrogation has been done by the sleuths. "Funds have been raised by the two companies through a vast network of lakhs of commission agents spread all over the country who were being paid hefty commissions for luring the investors," the spokesperson said.

The searches were conducted at the premises of Directors Harcharan Singh, Chandra Bhushan Dhillon, Prem Chand, Gurmeet Singh, Subrato Bhattacharya among others.

23.07 | 0 komentar | Read More

Bosch reports 19% fall in profit for Oct-Dec

Leading automotive component manufacturer Bosch today posted over 19 percent decline in net profit to Rs 138.98 crore for the October-December quarterof 2013 due to slowdown in the auto sector. The company had reported a net profit of Rs 172.05 crore for the same period of 2012.

"The prolonged slowdown of the automotive industry in 2013 coupled with weak consumer demand has impacted the overall industry as well as our growth," Bosch Managing Director Steffen Berns told reporters here. "Our non-automotive business has been doing very well with its share increasing steadily as we continue to expand our operations in this sphere," he added.

Total income rose to Rs 2,162 crore during the quarter under review, from Rs 2,131.80 crore in the year-ago period, according to a BSE filing by the company. For the whole 2013 year, Bosch reported a net profit of Rs 884.64 crore, down from Rs 958.27 crore in 2012 fiscal. Total income from operations (net) rose to Rs 8,820.06crore in 2013, from Rs 8,659.07 crore in the previous year, the filing said.

"Our cumulative measures on cost control throughout this year helped us to limit the decline in profitability despite the unutilised capacity," Berns said. Exports grew by 12.5 percent to Rs 1,058 over 2012. In view of the company's results, the Board of Directors recommended a dividend of Rs 55 per share for 2013, he added. The automotive business of the company registered a marginal decline of 0.7 percent compared to Indian automotive market, which declined by 3 percent on the production volume (excluding 2-wheeler segment).

Diesel systems was affected by the insistent decline inthe domestic sales of commercial vehicles and passenger cars. "However, the division retained its market share despite this extended slump, while the division of Gasoline Systems grew moderately," he added. Starter Motors and Generators registered double-digit growth driven by the significant increase in domestic sales and exports of the New Base Line Generators, Berns said. "Automotive Aftermarket had a low growth owing to the slowdown and tough market conditions," he added.

"Overall, we are positive of the mid-and long-term growth prospects. In particular, we expect to see the situation improve following this year's general elections," Berns said. On the non-automotive business, he said the segment grew by over 19 percent. Power Tools and Packaging Technology division registered double-digit growth for 2013.

On expanding company's broad-based footprint, Berns said: "We are committed to expanding and strengthening our already broad-based footprint here. Last September, we broke ground in Bidadi on a new manufacturing unit for diesel injection components." This year, the company will be further augmenting its existing facility at Adugodi which will be transformed into a research and development hub.

23.07 | 0 komentar | Read More

No respite from winter chill for North America

The spring season officially commences on the 20th of March in the Northern Hemisphere. Various weather activities around that time give us a feeling that winter is saying us good bye. However, this time round, the cold spell of winter does not seem to be in a hurry to leave, specially over the central and eastern states.

There are already signs of polar vortex and freezing temperatures coming to an end for many areas of the Midwest, but this year will definitely see a slow spring as cold wave will take few more weeks to subside and might stay till the third week of March. The Midwest and eastern states will see a chilly spring this year.

Various places including Minneapolis, Chicago and Detroit have been recording temperatures 6°C to 8°C below normal average. The coming weekend, arctic air is expected to shift to the Midwest and bring temperatures nearly 30°C below normal average. The maximum temperature at Minneapolis on Tuesday was only (-14°C) and the spell of cold air will cover cities like Green Bay, Fargo, Chicago and Traverse City. This cold air is expected to shift to southern and eastern states by next week.

The Polar jet stream along with the moist jet from the Pacific will bring some more winter storm in U.S to set an end to the winter season. Northern Rocky mountains, central plains, parts of Midwest and northeast will receive a long spell of snowfall before winter finally bids farewell.

picture courtesy-  NY Daily News

By: Skymetweather.com

23.07 | 0 komentar | Read More

Sugar production estimated to decline in SY14: ICRA

Apart from lower sugar production in UP, lower rainfall in Tamil Nadu is likely to impact sugar production and the output is expected to decline by 15 percent, ICRA said. Further, there has been a delay in the commencement of crushing across the country due to a delay in the fixing of the cane prices.

Domestic sugar production is estimated to decline in SY'14 (sugar year beginning October) due to excessive rains in Uttar Pradesh and previous year's drought in Maharashtra, according to a report by ICRA. "ICRA expects the domestic sugar production to decline in SY'14 following a lower sugar production in UP on account of excessive rains and diversion of crop to alternate sweeteners while sugar production in Maharashtra is likely to get affected by the previous year's drought," the report said.

In addition to this, lower rainfall in Tamil Nadu is likely to impact sugar production and the output is expected to decline by 15 percent, ICRA said. Further, there has been a delay in the commencement of crushing across the country due to a delay in the fixing of the cane prices.

However, high opening stock of 8.5 million tonnes coupled with limited scope for exports with continuing low global prices are likely to result in continuation of sugar surplus in the country in SY'14, the agency said. "Notwithstanding the expected decline in the domestic sugar production during SY14 and lower imports, surplus sugar in the market coupled with the suppressed export scenario due to low global sugar prices, ICRA expects the domestic sugar prices to remain subdued in the near term," ICRA Senior VP, Co-head corporate sector ratings Sabyasachi Majumdar said.

He said even as the government has announced export subsidy of Rs 3,333 per tonne for 4 million tonnes of raw sugar for February - March 2014, ability of the sugar mills to sell the raw sugar in the international markets remains critical as the global prices are declining. Going forward, with the continuing cost pressures and declining sugar prices in the international markets, the rationalisation of the cane costs remains critical for the profitability of the sugar mills.

23.07 | 0 komentar | Read More

Lanco Infratech bags Rs 3,960 cr contract

Lanco emerged as the successful bidder for the contract which has been awarded by Tamil Nadu Generation and Distribution Corporation Ltd. With this contract, the group's order book now stands at Rs 27,005 crore.

Diversified  Lanco Infratech has won a contract worth Rs 3,960 crore related to a power project in Tamil Nadu. The Engineering Procurement and Construction (EPC) contract for 660 MW super critical Ennore thermal power station expansion project is worth Rs 3,960 crore, the company said in a statement.

Lanco emerged as the successful bidder for the contract which has been awarded by Tamil Nadu Generation and Distribution Corporation Ltd. With this contract, the group's order book now stands at Rs 27,005 crore.

According to the statement, Tamil Nadu Chief Minister Jayalalithaa handed over the confirmation letter to Lanco Infratech's Executive Chairman L Madhusudhan Rao. "The Letter of Intent would be issued shortly as confirmed by Tamil Nadu Generation and Distribution Corp Ltd," it added.

Lanco Infratech stock price

On February 26, 2014, Lanco Infratech closed at Rs 6.31, up Rs 0.01, or 0.16 percent. The 52-week high of the share was Rs 14.25 and the 52-week low was Rs 4.96.

The latest book value of the company is Rs 15.09 per share. At current value, the price-to-book value of the company was 0.42.

23.07 | 0 komentar | Read More