tag:blogger.com,1999:blog-126172622024-03-16T17:27:28.377+05:30Investment GuruRajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.comBlogger334125tag:blogger.com,1999:blog-12617262.post-89875612634843097792011-05-21T18:06:00.001+05:302011-05-21T18:06:21.546+05:30Enjoy PF Interest @9.5% tax free<p>Millions of PF account holders got a bounty of 9.5% interest for the year 2010-11. However there was a lack of clarity on the taxability of the Interest over 8.5% as the finance ministry had notified a interest exemption on PF deposits @8.5%. </p> <p> </p> <p>In its notification No. 24/2011 dated 13th May,2011, the ministry of finance has revised the rate of interest notified under rule 6(<em>b</em>) of Part A of IVth Schedule to the Income tax act,1961 to 9.5%.</p> <p>This clears the way of tax exemption on Interest Income from PF deposits @9.5% for the financial year 2010-11.</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com138tag:blogger.com,1999:blog-12617262.post-65944113204435510582011-04-24T15:21:00.001+05:302011-04-24T15:22:02.257+05:30DDA Housing Scheme 2010 Waiting List<div dir="ltr" style="text-align: left;" trbidi="on"><span style="font-family: Verdana, sans-serif;">DDA has announced the list of wait listed applicants who may be alloted flats, if flats alloted in the scheme are surrendered . The waiting list is valid only for a period of 9 months. A draw will be held only once after six months, from date of issue of demand letters, for allotment of the surrendered flats to the wait listed registrants as per the priority decided initially. Only those flats which are surrendered within six months from date of issue of demand letters would be included for allotment to waitlisted registrants.</span><br />
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<span style="font-family: Verdana;">Click <a href="http://www.dda.org.in/tendernotices_docs/april11/WAITING_LIST_DDA_HOUSING_SCHEME%202010.pdf"><strong>here</strong></a> to see if you are among one of the applicants in the waitlist.</span></div>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com61tag:blogger.com,1999:blog-12617262.post-69745136292764837552011-04-18T18:13:00.001+05:302011-04-18T19:01:39.392+05:30DDA HOUSING SCHEME 2010 DRAW RESULTS<div dir="ltr" style="text-align: left;" trbidi="on">DDA has announced the results of Housing Scheme 2010. Click the link below to check your allotment status.<br />
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<a href="https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B3-kK5dY849FM2Y4ZTYzNDAtZTFiYy00YWU4LThjMjctMTY5ZjgzYTY3YmFi&hl=en&authkey=CJHpnXw">DDA Housing Scheme 2010 Draw Results</a></div>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com48tag:blogger.com,1999:blog-12617262.post-53047295584614791692011-03-27T10:58:00.003+05:302011-04-16T12:36:18.132+05:30DDA Housing Scheme 2010 Allotment Status<div dir="ltr" style="text-align: left;" trbidi="on"><span style="font-family: Verdana, sans-serif;">The draw for DDA Housing Scheme 2010 is expected to happen between 15th to 20th April,2011. This draw will determine the lucky 16000 applicants out of the 7.5 Lacs applications received for the scheme.</span><br />
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<span style="font-family: Verdana, sans-serif;">DDA will also post the status of applicants eligible for the draw on 29th March,2011. Applicants will get a chance to submit the corrrection, if their forms are found to be filled incorrectly /for missing information. Applicants should ensure that they check the eligibility status of their forms and submit corrections, if required, to qualify for the draw.</span><br />
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<span style="font-family: Verdana;"><strong><u><span style="color: blue;">Update</span></u></strong>: The Draw for DDA Housing Scheme 2010 will be held on Monday,18th April,2011. However, the results of the draw would be available on DDA website only on Tuesday, 19th April,2011. The results will also be published in the newspapers.</span></div>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com30tag:blogger.com,1999:blog-12617262.post-29656197815145746852011-03-18T23:24:00.001+05:302011-03-18T23:24:56.992+05:30Can I claim 80G deduction through my employer ?<p>Section 80 G of the Income Tax act provides for deduction from  Taxable income in respect of donation made to funds and charitable institutions. These institutions must have obtained the required approval from Income Tax department.</p> <p> </p> <p>I am covering two aspects in relation to the 80 G deduction :</p> <p>1. Can I claim 80 G deduction through my employer so that it forms part my Form 16 ?</p> <p>2. What are the important points to be kept in mind while donations to the trusts and institution ?</p> <p> </p> <p><strong>Claiming 80G deduction through employer permissible</strong> </p> <p>As per clarification provided on Income Tax department website, deduction under Section 80G can be claimed through employer only in case of contribution to the institutions specified.</p> <blockquote> <p>No deduction should be allowed by the employer/DDO, from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible u/s 80G will have to be claimed by the taxpayer in the return of income. However, DDOs, on due verification, may allow donations to the following bodies<strong> to the extent of 50%</strong> of the contribution:</p> <p>a) The Jawaharlal Nehru Memorial Fund;</p> <p>b) The Prime Minister's Drought Relief Fund;</p> <p>c) The National Children's Fund;</p> <p>d) The Indira Gandhi Memorial Trust;</p> <p>e) The Rajiv Gandhi Foundation, </p> <p><strong>and to the following bodies to the extent of 100% of the contribution:</strong></p> <p>1) The   National   Defence   Fund   or   the   Prime Minister's National Relief Fund;</p> <p>2) The Prime Minister's Armenia Earthquake Relief Fund;</p> <p>3) The Africa (Public Contribution-India) Fund;</p> <p>4) The   National   Foundation   for   Communal Harmony;</p> <p>5) The Chief Minister's Earthquake Relief Fund, Maharashtra;</p> <p>6) The National Blood Transfusion Council;</p> <p>7) The State Blood Transfusion Council;</p> <p>8) The Army Central Welfare Fund;</p> <p>9) The Indian Naval Benevolent Fund;</p> <p>10) The Air Force Central Welfare Fund;</p> <p>11) The Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996;</p> <p>(12) The National Illness Assistance Fund;</p> <p>(13) The Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund, in respect of any State or Union Territory, as the case may be, subject to certain conditions;</p> <p>(14) The University or educational   institution   of national eminence approved by the prescribed authority;</p> <p>(15) The National Sports Fund to be set up by the Central Government;</p> <p>(16) The National Cultural Fund set up by the Central Government;</p> <p>(17) The Fund for Technology Development and Application set up by the Central Government;</p> <p>(18) The national trust for welfare of persons with autism, cerebral palsy mental retardation and multiple disabilities.</p> </blockquote> <p>For donations made to fund/institutions other than mentioned above, you cannot claim the deduction through your employer.Hence you have to claim it while filing your return.</p> <p> </p> <p><strong>Keeps following in mind while making donations</strong></p> <p>1. Ensure that the fund /institution is approved by the Income tax department for deduction under this section. For check this, please ask for a photocopy of 80G eligibility certificate from the fund/institution.</p> <p>2. Always ensure that the Receipt issued by the fund /institution carries the Name and address of the trust, your name, registration number issued to the trust and the validity period of the Registration. Also make sure to tally the the amount written in words and in figures.</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com26tag:blogger.com,1999:blog-12617262.post-67050862438650559092011-03-05T15:31:00.005+05:302011-03-05T16:23:41.449+05:30Stock Review : Power Grid Corporation<div dir="ltr" style="text-align: left;" trbidi="on"><span style="color: #444444; font-family: Verdana, sans-serif; font-size: large;"><strong>Safety Grid for your Portfolio</strong></span><br />
<span style="font-family: Verdana, sans-serif;"><img align="left" alt="powergrid" border="0" height="104" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjxgWl6IAfZlOyltyRIGWuUTzON8IkeT7wt9dd2IKPxK5OJjss0jU3du8jBp8zGZHGkIYUo5HmmJScT2UAmuQZdEJWajBuKQihLQ2cqRW-Q3h49pbUpZ4HPB8L9kJoBVbShWc/?imgmax=800" style="border-bottom: 0px; border-left: 0px; border-right: 0px; border-top: 0px; display: inline; margin: 5px 0px;" title="powergrid" width="104" /></span><br />
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<span style="font-family: Verdana, sans-serif;">Power Grid Corporation was incorporated as National Power Transmission corporation limited on October 23rd 1989 with an objective of forming a Nationwide Power Grid which would pave the way for integrated operation of central and regional transmission systems. </span><br />
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<span style="font-family: Verdana, sans-serif;">In line with this objective, the transmission assets of power generation companies such as NTPC,NHPC,NEEPC,Neyveli Lignite, NPCL,THDC were transferred to Power Grid Corporation at various points in time. On 31st Dec.1998, the company was notified as Central transmission utility by the government of India pursuant to takeover of all the regional load despatch centres.</span><br />
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<strong><span style="font-family: Verdana, sans-serif;">Business of PGCIL</span></strong><br />
<ul><li><span style="font-family: Verdana, sans-serif;">The core business of the company being transmission of electric power, it owns, operates and build a large network of transmission lines and related infrastructure. </span></li>
<li><span style="font-family: Verdana, sans-serif;">The company has also diversified into Telecom sector. It is only company having Optic Fiber network using Optical ground wire on power transmission lines. It has an all India Broad Band Telecom Network of about 20,733 Kms connecting more than 129 cities across the country. </span></li>
<li><span style="font-family: Verdana, sans-serif;">The company has license under Infrastructure provider category, NLD license for end to end Bandwith and ISP Category ‘A” license to provide internet services.</span></li>
<li><span style="font-family: Verdana, sans-serif;">Power grid corporation also provides engineering services in power transmission business internationally</span></li>
<li><span style="font-family: Verdana, sans-serif;">The company provides consulting services to clients in power sector in terms of building and maintenance of transmission lines.</span></li>
</ul><span style="color: #555555; font-family: Verdana, sans-serif;"><strong>Performance Analysis</strong></span><br />
<ul><li><span style="font-family: Verdana, sans-serif;">PGCIL’s earnings are directly related to its capex plans for laying the transmission lines. It commissioned projects worth INR 6,800 crore in first 9 months of FY 11 out of the target of 9000 crore. The company targets capitalisation of 10,000 crore in FY 12.</span></li>
<li><span style="font-family: Verdana, sans-serif;">The company has announced its plan of commissioning 1.2Lac Crore of projects in the 12th Plan which is twice the capex target of 11th Plan.</span></li>
<li><span style="font-family: Verdana, sans-serif;">For the 9 month of FY 11 the company posted Revenue of 6178 Crore and Net profit of 1946 Crore. For FY10 the company posted revenue of 7127 Crore and Net profit of 2041 Crore.</span></li>
</ul><strong><span style="font-family: Verdana, sans-serif;">Investment Rationale</span></strong><br />
<ul><li><span style="font-family: Verdana, sans-serif;">The company provide an excellent way to invest in the Power story of India.</span></li>
<li><span style="font-family: Verdana, sans-serif;">Aggressive Capex plans would translate into better future earnings for the company. The past trends indicates that the company has met its targets set earlier.The FY12 guidance on capitalization provides visiibility into continued momentum of strong earnings growth.</span></li>
<li><span style="font-family: Verdana, sans-serif;">PGCIL should prove to be an ideal stock to provide the safety grid to an investor portfolio</span></li>
</ul><strong><span style="font-family: Verdana, sans-serif;">Additional Readings</span></strong><br />
<strong><a href="http://www.powergridindia.com/"><span style="font-family: Verdana, sans-serif;">Power Grid Website</span></a></strong><br />
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<span style="font-family: Verdana, sans-serif;">Disclosure : I have a long position in this stock.</span></div>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com22tag:blogger.com,1999:blog-12617262.post-57458691561396774072010-09-26T14:18:00.001+05:302010-09-26T14:18:30.513+05:30Stock Review:Karuturi Global<h3>Roses for greetings and Food for thought</h3> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJuwC3Zs9l36iN1e86VZqZDvG8qUJnvomtfqDHIyWiFgK1P9X-eJpvsqzrKdN0_4PGkETa5asA1G3xBFbJr38KLpzud2zVFqd3hOUJKNl7TjC34CHumGCrDJa1z_V05RQBJPM/s1600-h/karuturilogo4.jpg"><img title="karuturi logo" style="border-top-width: 0px; display: inline; border-left-width: 0px; border-bottom-width: 0px; margin: 0px 20px 0px 0px; border-right-width: 0px" height="82" alt="karuturi logo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgOEVzeOwNmV2rbzuO3rZLlI6qh_NuUmRQCUwlOt6ddlFnY-3zeUFOqJX33CKrUclPsRVEimXGRnGu0SKxvZ-hWql4971JA2P1UNtbyzO8u0MHfIZijJj5TtXTScVcvrARHe4/?imgmax=800" width="82" align="left" border="0" /></a> Founded by SRK (Sai Ramkrishna Karuturi) in the year 1994, Karuturi Global has matured into a leading producer of cut roses and has aggressive expansion plans  in the area of production of premium cereals to covert itself into a Complete Agriculture production company. </p> <p> </p> <h4>About Karuturi’s Business</h4> <p>1. Company grows roses on  an area of 239 hectares and has a capacity to produce 555 million Rose stems annually. It has operations in India, Kenya and Ethiopia which are low cost production bases. US, Europe and Japan are the key markets served by the company. Europe is the largest consumer for Roses and the company has 9% share in this market. </p> <p>2. The game changer proposition however is company’s entry into cultivation of premium cereals, Edible oils and processed foods. Karuturi has acquired 3.11 Lac Hectares of land parcel on lease in Ethiopia for this purpose. </p> <p>3. Out of above 3.11 Lac hectares, company has already started operations on 11 K hectares for maize and Rice cultivation. On the 3 Lac hectares, the company proposes to grow cereals and Oil Palm. The company plans to cover a major area of the above in cultivation in the next two years. </p> <p>4. The agriculture business will primarily cater to the COMESA (Common market for Eastern and Southern Africa) which has a population base of 400 Million. Hence there is a ample market for company’s produce.</p> <h4><strong></strong></h4> <h4><strong></strong></h4> <h4>Positives</h4> <p>1. With ever increasing population and reducing area of cultivation due to conversion of agriculture land for habitation, there is a concern of acute food shortage in the coming future. Hence Agriculture as a business class would have excellent growth prospects. Karuturi has chosen a location which provides access to large area for cultivation at reasonable cost of access to land as well as low cost of production. Another added advantage is proximity to the consumer base.</p> <p>2. The floriculture business continue to grow and is a good margin business. With recessionary trends still seen in US and European countries, Roses may provide alternatives to costly gifts. This may provide resistant to recessionary pressures of these economies.</p> <p>3. The foray into agriculture would provide a significant boost to the Revenue and profits of the company and has the potential to make it a major player in this segment in next couple of years. </p> <h4> </h4> <h4>Major concern Areas</h4> <p>1. The company has embarked upon a rapid expansion plan and as such has execution risks associated with it. Any delay in execution or not being able to cultivate two crops in a year as per the plan may reduce the attractiveness of this expansion.</p> <p>2. This expansion would require major capital expenditure and hence the company would need to demonstrate highly efficient use of funds. </p> <p>3. Promoter stake in the company is comparatively lower at 27% and may come further down as the company would require to infuse funds for its expansion program. Lower stake of promoter in a fast expanding business may not be a looked upon as a good indicator.</p> <h4> </h4> <h3></h3> <p>The investment in Karuturi can turn out to be multi-bagger if the company is able to effectively execute its foray into the Agri business. The investment in this company may be suitable for those investors who have <strong>high risk apatite</strong> and are willing to hold on to the stock for a couple of years to reap the benefits as the company converts itself to a agriculture powerhouse. At  the same time it is important for investors to monitor the developments in the stocks  and take suitable actions to switch out  in case of any major failure in the company’s growth plans.</p> <p><font color="#0000ff"><strong>Disclosure & Disclaimer</strong> : I have a small position in this stock and I can buy further or exit my position, fully or partly, based on my investment needs and may not communicate the same on this blog. This article is my opinion on the stock and should not be construed as a Buy or sell recommendation. </font></p> <p><strong>Further Readings</strong></p> <p><a href="http://www.karuturi.com/">About Karuturi Global</a></p> <p><a href="http://www.karuturi.com/images/pdf_new/karuturi_corporate_fact_sheet.pdf">Corporate Fact Sheet</a></p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com31tag:blogger.com,1999:blog-12617262.post-33051768134926674492010-09-25T23:24:00.001+05:302010-09-25T23:25:11.008+05:30IPO Update –Cantabil Retail India Ltd.<h3>Dressed up for the Show</h3> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9dIBWMfT2y2kRsV0CN5gFVrZ5z3CtbF1MO2O51vb1etCvIXgjbt7bZeTt-mD0647KtqnP-HyFUZykpZDPOyKsp2Kme0R2Mp4UVJPQoHv2YT7dOCgMkNw-AyNsHo2pKEX9OOs/s1600-h/cantabil%5B4%5D.jpg"><img title="cantabil" style="border-right: 0px; border-top: 0px; display: inline; margin: 0px 20px 0px 0px; border-left: 0px; border-bottom: 0px" height="122" alt="cantabil" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHzgnQd77wYi4GBKrvYJzresp_rm18EP44MHG5MXctLTYNcf8qsZbBYRXDqEJmvJAdSvDX33Kjeso0sMMWA5jYrLMUYpJzSddAyGEL-K98j-PWfEThKK52SwAF3JU6-Jvd7Bw/?imgmax=800" width="60" align="left" border="0" /></a> Cantabil has eneterd the capital markets with an offering of shares in the price band of Rs.127-135 to garner 105 crores for its expansion plans.</p> <p><strong>Positives</strong></p> <p>1. Cantabil has a network of 411 exclusive retail outlets spread across India of which 141 outlets are exclusively for its brand “La Fanso” an rest for “Cantabil” brand.</p> <p>2. It offers complete range of formal wear, party wear and casual wear for Men, Women and Kids .</p> <p><strong>Concerns</strong></p> <p>1. Cantabil depends on third parties for a considerable portion of sales as well as manufacturing  of its products. It makes it vulnerable to performance issues.</p> <p>2. Centralization of manufacturing facilities at Delhi exposes company to issues related to local unrest or disturbances.</p> <p>3. The apparel segment has many established players and hence the company has intense competition on this front to keep its brand value flying high. Some of the competitors include Raymonds, Gini and Jony, Provogue,Koutons and Arvind brands.</p> <p><strong>Financials</strong></p> <p>Cantabil posted a Topline of Rs. 263.6 crores for year ending March.2010 and a profit after tax of Rs. 14.68 crores. Company’s revenues and profit have grown significantly over past four years as it added the Women and Kids wears as a part of its offerings.</p> <p><strong>Valuations</strong></p> <p>At the upper band of the offer price, the company is seeking a PE multiple of more than 15 while peers like Koutons is quoting at PE of 12 and Kewal Kiran at 14 times. The issue seems fully priced as compared to its peers. However, the booming markets may still put premium on listing. I am planning to put some token money to taste the waters.</p> <p>Issue Opens : 22-09-2010</p> <p>Issue Closes: 27-09-2010</p> <p>Registrar: Beetal Financial & Computer services</p> <p>Current Grey market premium : Rs.12</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com6tag:blogger.com,1999:blog-12617262.post-55790312778721696322010-09-21T22:50:00.001+05:302010-09-21T22:50:00.530+05:30IPO Update : Electrosteel Steels Limited<h3>New Baby in the world of Steel</h3> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9pRLvF_tRv-xm95UN5-aNdPZZ6WOeF3gef_eBh9C8q6bwGMG9WYuSYM7JxqDSdqkZPB7ldK07IfEKA8gegXZxEEivmC_tcNoWHvGvwgbnTyl1cTHq_rrPCgXF65CvD41Idis/s1600-h/electro%5B4%5D.jpg"><img title="electro" style="border-right: 0px; border-top: 0px; display: inline; margin: 0px 15px 0px 5px; border-left: 0px; border-bottom: 0px" height="80" alt="electro" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiedSdAlg8zh0lcGidIe2pdDWihayPbPaqVu0n_12myaF0yTFVR7QzvBwBUNb_RgMln567Kps01_JaoSd8xSidkSVeTGgG0cLoqSkVj92T3vDxvLTNRfHrYnyINkr_FRHu_AlA/?imgmax=800" width="80" align="left" border="0" /></a> I have nothing exciting to write about this new kid on the block. The company is promoted by Electrosteel Castings Limited , which is a leader in Cast Iron pipes and Ductile Iron Spun pipes and I could find this as the only silver lining.</p> <p>The company is in the process of setting up 2.2 MTPA Steel plant in the state of Jharkhand. It does not have any operating history. It will take a couple of years for the operating performance of the company to unfold and hence I would prefer to avoid the IPO. Only those investor who would like to take a long term view may think of applying at the lower band of the offer price.</p> <p>Registrar : Karvy Computershare</p> <p>Issue Closes : 24-Sep-2010</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com8tag:blogger.com,1999:blog-12617262.post-11831853600380515692010-09-20T22:42:00.001+05:302010-09-20T22:42:26.664+05:30IPO Update: Eros International media limited<h3><font color="#ff0000">Full Entertainment for Investors too !</font></h3> <p><img title="eros_logo" style="border-right: 0px; border-top: 0px; display: inline; margin: 0px 10px 5px 5px; border-left: 0px; border-bottom: 0px" height="66" alt="eros_logo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiL5Qfpi2SNMhzqONC8DCkrpi5miQVcqPHc2x3G4nmcJGlNL5dgPUFR9p7z-Yfv8xjT4jOkzeDqnFxPkhy5zX-7k7fg34-iTmCwt-2-2FFI9dtlTHDjpvSUp3FwAbS-R3GSEWw/?imgmax=800" width="118" align="left" border="0" /> Eros International IPO is offering shares @ 158-175 to raise up to Rs. 350 crore. A quick look at the positives and concerns. </p> <h5> </h5> <h5> </h5> <h5>Positives</h5> <p>1. Eros has a content library of over 1000 films and the company is yet to milk these effectively.</p> <p>2. Diversity and segmentation of revenue- Eros derives revenue from Theatre release of new movies, sale to channels and music rights. Further a large portion of revenue is generated from overseas releases which ensures good geographical segmentation. </p> <h5> </h5> <h5>Concerns</h5> <p>1. Failure to provide super hit movies in future may turn the tide.</p> <p>2. Not competent to make its own movies. The only production “Aa dekhen Zara” was a big flop. </p> <p>On valuations the issue is priced at a PE of 21 on the higher end which is in line with valuation enjoyed by peers such as UTV software. With good going of “Dabang” and few good movies lined up for release the stock is all set to provide full entertainment to investors on the stock markets too . I am applying with a view to book listing gains.</p> <p>Current Grey Market Premium :  Rs. 35</p> <p>Registrar : Link Intime</p> <p>Issue Closes : 21-Sep-2010</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com10tag:blogger.com,1999:blog-12617262.post-90619005465157716092010-09-18T17:05:00.001+05:302010-09-18T17:06:34.311+05:30IPO Update : Career Point Infosystems<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsETFNVqKoMoeIyuV_tdU6qFDYUJRjA6UU4FTtTGwCAKG0V0NVsAyVikJX_LwSnTk1T9keIxGvidUu3KUkU5EdGNp2PF3TgcgCfYmYVcAyCuXA_n_0V-A9YhDnR1Vu5V0urHo/s1600-h/cp_logo%5B6%5D.png"><img title="cp_logo" style="border-right: 0px; border-top: 0px; display: inline; margin: 0px 10px 5px 0px; border-left: 0px; border-bottom: 0px" height="59" alt="cp_logo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjw5rEdK93j0jxgB7rmGGYcbz2l6_mK9L1ryrksTXgffU8GquGjEuMePESuTWm7GHQ3tiX5MQKOd-X0nIu20RftegG7d0kSMOmeMFGi8lrm0pp1sOG62AScQQnGgmT_cECxtYM/?imgmax=800" width="82" align="left" border="0" /></a> This IPO may not be comparable to the likes of Everonn Edu which has given 400% return since its listing and it may not repeat the euphoria created by Educomp solution since its listing, but Career Point info systems definitely offer a opportunity to participate in a public offering of a new class of business – Education –Tutorials.</p> <p>At the same time it also presents a potential risk as we do not have a comparable listed entity. The company needs no introduction as neither Kota as a hub for engineering tutorials. It provides tutorial services to high school and post high school students for various competitive entrance examinations including AIEEE,IIT-JEE, PMT and PDT through its 17 company operated and 16 Franchisee centres. </p> <h4> </h4> <h4>Positives</h4> <p>1. Being first issue of its kind of a education tutorial company, the IPO will set precedent for the other companies in this sector who aspire to get listed. </p> <p>2. The education tutorial has been a highly un-organized industry and the listing of career point will enable people to have shareholding in such companies as education is considered to be a highly lucrative and promising industry.</p> <p>3. Career point has earned a good brand name in its field. In education sector, reputation matters a lot and the company is poised to reap benefit of the same.</p> <p>4. Presence across 13 states provides Career point an edge to target the wide consumer base of students preparing for the engineering exams.</p> <p>5. The company plans to foray aggressively into ECAMS (Education consultancy and management services) and is exploring to extend it to private-public schools as well as government school.</p> <p>6. The company also runs Global public school and Career point University.</p> <h5> </h5> <h4>Concerns</h4> <p>1. Education industry witness rapid changes and with ever increasing competition it would a challenge for the company to maintain its competitive edge. </p> <p>2. The company has a history of negative Cash flows from Operating and Investing activities on account of its rapid expansion plans. </p> <p>3. A search and seizure operation was carried at company premises and premises of the promoters last year by income tax department. One of the promoter had accepted unaccounted income of the company, promoters and relatives of INR 60 Million. There were series of notices served on the company by other departments based on above . The management needs to show more honesty and transparency and better standards of corporate governance as they serve the industry which runs on credibility.</p> <p>4. The training center at Kota contributes more than 58% of  revenue and hence any disruption of any sort at Kota may lead to significant loss of revenue for the company.</p> <h4> </h4> <h4>Financials & Valuations</h4> <p>Career point reported a Top-line of Rs. 65.8 crore for year ending 31-Mar-2010, up 37% against last year. Net profit stood at 17.8 Crores, up 18.7% against last year. As per a recent interview, the management has shown confidence of a growth rate of 25% .</p> <p>The EPS for year ending Mar-10 stood at 14.71 and the Return of net worth stood at 14.6%. At the upper price band of 310, the PE works out to be 28 which is aggressive considering Everonn trading at current PE of around 21 and Educomp at a PE of 25. The stock is quoting at a premium of Rs . 90 in Grey market .</p> <p>I am considering applying for the IPO and if the stocks lists at a good premium, I plan to book listing gains. </p> <p>Issue Opens : September 16,2010</p> <p>Issue Closes: September 21,2010</p> <p>Registrar : Link Intime</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com4tag:blogger.com,1999:blog-12617262.post-23588131792152429812010-01-01T14:48:00.001+05:302010-01-01T14:51:02.576+05:30Happy New year 2010<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhi8Yq4xBXAtLK3e9vAOJj1tIarYhUcU_kt5yuo1hLJthM0Y9C0QpeWEqbB1CI3TSt93E3fibsVOAAh4bXf_rUeVu_X7kVjM7R5NKGyxVDEqUk9EQA-9ILUUQ1tO-gEcluLeBg/s1600-h/newyear28.jpg"><img title="new year 2" style="border-top-width: 0px; display: inline; border-left-width: 0px; border-bottom-width: 0px; margin: 0px 10px 10px 5px; border-right-width: 0px" height="117" alt="new year 2" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWA000BpQ4g83ZDAXzt-C7q8IK1lZsyalFgxFPycEa2VMrQCWod0QqMqrXuQXk_he4IWvhFVKcm0Gcz9d6GiYHRF7-PKrEvLO28uUIaR9RjBEkryN1wxLlNSmSeMdX4kH_SNA/?imgmax=800" width="124" align="left" border="0" /></a> </p> <p>Dear Friends,</p> <p>I wish all of you a very Happy and Prosperous New year. The last year has been a mixed year in terms of stock market movement. It started with a doom of recession but recovered as the fear of recession receded and economies across the globe started showing signs of recovery. Year 2010 should prove to be a period of consolidation in the markets. The extreme volatility of 2009 would be missing this year and the markets will bank on Inflationary trends, Decisions on Stimulus exit and Earnings season for direction. Liquidity would continue to drive the Asian markets stronger.</p> <p>With 2009 providing a big jump to the valuation across companies, searching for value picks would be more difficult in the new year. Investor would flock to Mid caps and Small caps stocks that have not recovered fully from the beatings of 2008 and where the fundamentals do warrant a correction in valuations.</p> <p>I have been absconding from the blog for last few months and I do not see any improvement in frequency of updates on the blog in the new year.  You may not see many updates on the blog as my job wants more of my time, but I promise you at least few powerful posts that would make you feel good about spending time on this blog.</p> <p>Once again, all the best for the new year and Happy Investing !!</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com12tag:blogger.com,1999:blog-12617262.post-10457181801638563832009-11-29T17:06:00.003+05:302010-01-04T18:43:36.683+05:30HUDA Scheme: Residential Plots in Faridabad<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjt1cf9DH_LHhfKZGwNGu2QtK04D_zzvNaB3DzPWpjgt-EAKlYB5ddxFnV-0lKWuB8gkNKJ16u2PJhcnYNxq-Mxz0CyJ5q8hiIstl-1srphI6C6DwnJrukUEX8sw7smjwrc6f0/s1600-h/huda%20logo1%5B3%5D.png"><img title="huda logo1" style="BORDER-RIGHT: 0px; BORDER-TOP: 0px; DISPLAY: inline; MARGIN: 5px 30px 5px 5px; BORDER-LEFT: 0px; BORDER-BOTTOM: 0px" height="92" alt="huda logo1" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOrFOJeNqTlD73Ow-gnXQf0uhCeYE_kApWy28LZroEe05vFsad1woloR3HktAgGZI5TKmcSqxi658ckwq_mDybk9hkmEY-ebHX4ggVNI3VBLy41c0VCQnWJXKjPrqw47oHo-k/?imgmax=800" width="125" align="left" border="0" /></a> Haryana Urban Development Authority has launched a scheme to allot freehold residential plots in Faridabad and other areas like Sonipat, Rohtak, Bahadurgarh, Ambala, Jind, Hisar and Palwal.</p><p>Though the scheme is launched for various urban areas, the center of attraction is the allotment of 1,969 plots of various sizes in Faridabad.</p><p></p><h4><strong><span style="color:#0080c0;">Salient Features of the Scheme</span></strong></h4><ul><li>Faridabad is an integral part of the NCR region and has good connectivity and proximity to Delhi. Though the region has been sluggish as compared to other NCR regions like Gurgaon is terms of appreciation in real estate prices, it does offer ample scope as there are talks of modernization of Mathura Road and work on Badarpur flyover as well as access to Metro in near future will provide facelift to the area.</li><li>Crime Rate in Faridabad is far less as compared to other popular regions in terms of real estate development like Noida and Ghaziabad.</li><li>The Rates offered in HUDA Scheme are quite competitive and offer even a good long term investment opportunity for those who want to invest in real estate to create wealth.</li><li>HUDA Scheme offers facility of payment in Installments. 10% Payable at application, 15% within one month of allotment and balance in Six equal Annual Installments.</li><li>Interest @5.5% per annum on the amount of earnest money for period beyond six months of closing date of scheme if the draw is not held and earnest money not refunded within this period.</li><li>Allotment will be made through draw of lots.</li><li>Any Individual can apply under the scheme provided he has not been allotted a plot of land directly by HUDA in the concerned Area. If you want to apply under reserved category, you must be a domicile of Haryana. </li></ul><h4><span style="color:#0080c0;">Concerns on the Scheme</span></h4><ul><li>You earnest money could be stuck with HUDA for as long as Six months without interest and thereafter @ 5.5% p.a. interest.</li><li>Development on Delhi-Mathura Highway and completion of Badarpur Flyover/ Access to metro is the key to next phase of price appreciation in the region and any delay on this front can take the sheen away for the investors.</li><li>Faridabad is grappling with pollution like other NCR regions. All the areas of the Faridabad including residential areas, industrial areas and silence zone are in the grip of air pollution. A part of it can be blamed to its initial planning as an Industrial township. Even the quality of water is a area of concern as a recent study has found water levels to be highly polluted and unfit for drinking.</li></ul><h5><span style="color:#0080c0;">Conversion of Marla in Sq. Mtr., Sq. Yard and Sq. feet</span></h5><p>Since the HUDA brochure talks in terms of Marla , you can refer the table below to see the equivalent size of plot in various dimensions</p><p><img title="conversion" style="BORDER-RIGHT: 0px; BORDER-TOP: 0px; DISPLAY: inline; MARGIN: 0px 0px 0px 70px; BORDER-LEFT: 0px; BORDER-BOTTOM: 0px" height="283" alt="conversion" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-5oi96zdwPa3SDWKj9xq-ZhKkGbF27fuoMTmRaFx446tSn9nwssjyzgDliUuxhIsA-X1AEpZYMfxSjy8-s-TodDPVCBhUkYqKSZaDITHDufnx6JMX3U8YD8udDrjYjVylz5k/?imgmax=800" width="283" border="0" /> </p><p>Download <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FYWVjNGI5ZTctOTIxNC00ZDlmLTg2Y2EtOTIzZjRiYmQ3Mjkw&hl=en" target="_blank"><strong>HUDA Application Form</strong></a> (remember to include additional Rs.100 while preparing the earnest money draft if you are using the downloaded version of application form)</p><p>Download <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FYzE3YWYxNzItYTYzMC00OWJiLWJiNDEtODg0N2UzODVlOTUx&hl=en" target="_blank"><strong>HUDA Scheme Brochure</strong></a></p><p><strong>Last date of Application : 05-01-2010</strong></p><p><strong><span style="font-size:130%;color:#cc0000;">Update : 04-01-2010</span></strong></p><p><strong>The Last date of Application has been extended to 06-01-2010</strong></p>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com81tag:blogger.com,1999:blog-12617262.post-53825413089332269092009-10-11T18:26:00.001+05:302009-10-11T18:28:20.019+05:30IPO Update: Indiabulls Power Ltd.<h2>In Quest for Power “full” India</h2> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisHGWnT4SW1y36TwK8oKye11NZzF9xhV3KMRPteRsTdD_F46T1N-HMQ4K4dhYRY1IkV34hUhNlHue55yeLT0YmSAJBT7TePaEv7WHr1PEhO6vEJ9vZfgo6vKv50pBsQNMip0E/s1600-h/indiabullspowerlogo%5B4%5D.gif"><img title="indiabullspowerlogo" style="border-right: 0px; border-top: 0px; display: inline; margin: 5px 10px 5px 5px; border-left: 0px; border-bottom: 0px" height="60" alt="indiabullspowerlogo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdKQ_1GSbgAMqrxqnEOzG-I2ptG6JUCY0VYbAU0fdKAdIR-7CU0rOVq_563L5leqWZ9c4OEaGTL_pZwUBbkHPw-oVvFjQmYUc-uXtrXiVhRBwer436faocelcWKBWc5ljOwEo/?imgmax=800" width="184" align="left" border="0" /></a> Indiabuls Power Ltd. has entered the capital markets with an issue of 33.98 Crore shares of Rs. 10 each at a price band of Rs. 40-45 per share. Investment Guru is of the view that India Bulls is just another player trying to leverage the India Power Story like Adani, Reliance and Tatas. The company is currently in the process of setting up its power plants will take 3-4 years to start commercial operations. It’s a story similar to Adani power and hence it’s more of a long term play.</p> <ul> <li>The Company is a subsidiary of IBREL, a part of the Indiabulls Group.</li> <li>IBPL is currently executing five power projects: 1,320 MW Amravati Power Project – Phase I, 1,335 MW Nashik Power Project, 1,320 MW Bhaiyathan Power Project, 1320 MW Amravati Power Project – Phase II and 1320 MW Chhattisgarh Power Project.</li> <li>The company expects to sell 75 per cent of the power generation via a long-term power purchase agreement (PPA) and balance through trading of power.</li> <li>Since the company has not yet commenced the operations, there is no financial performance to compare with other players.</li> <li>The projects are expected to be funded through a D/E ratio of 75:25. </li> <li>It is also developing four medium size Hydro Power Projects in Arunachal Pradesh aggregating to 167 MW. Indiabulls has also entered into MoUs with the Govt. of Madhya Pradesh and Jharkhand for setting up of 2640 MW & 1320 MW Thermal Power Projects in each of these States respectively.</li> </ul> <p>Investment Guru is of the view that we have already seen what happened to the Adani and NHPC issues and there is no reason why Indiabulls should get different treatment. The stock is currently commanding a premium of Rs. 4-5 in grey markets but for that matter even Adani commanded a premium in grey matter. This is a pure long term play and the stock will become dull after listing sensations until news of developments on the operational front starts coming in. For those who are looking for listing gains, if the promoters decide to price at a lower band , you can look for a 10% gain otherwise you would have to pray for your luck .</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com18tag:blogger.com,1999:blog-12617262.post-26324426399181817172009-10-08T09:44:00.001+05:302009-10-08T09:54:16.239+05:30Reliance declares 1:1 Bonus and Rs.13 Dividend<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOXM3NxssfNPr9hdSxjMaCUmd-mhfmsxabboQcNGAJwsG6tVNBdj4_U_M68Kf9Rs8GCRf77OtoFruzhhM1-PizzRC7tvlUc41F02b9ADTFcCshGjC27sjteMP_cTxPct4f-BQ/s1600-h/ril%5B4%5D.jpg"><img title="ril" style="border-right: 0px; border-top: 0px; display: inline; margin: 0px 20px 5px 5px; border-left: 0px; border-bottom: 0px" height="83" alt="ril" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj76OcpT18GPZ2szr8almme__CJdKTK1WMFdvFQRq5BivqNtgOAajeNjT7QLDM26zomnEH1IcHtfcg59XdgBzjipFykjboDnx0HPuupfzZ3DNQ2nd4_UGhWOMZUYzRG1DFwwlE/?imgmax=800" width="127" align="left" border="0" /></a> For those who thought that days are gone for this once evergreen stock , it’s time to be taken aback. Reliance Industries has added to the diwali celebrations of its shareholders by announcing a combo of a liberal 1:1 Bonus issue (after a gap of 12 years) and Rs. 13 per share dividend.</p> <p> </p> <h4>What does this Bonus means for Reliance Shareholders ?</h4> <ul> <li>The Bonus issue is an attempt by Reliance Industries to instill confidence in the shareholders towards the tradition of this company to bestow Investor friendly measures.</li> <li>Bonus Issues doesn’t change anything in terms of Financial performance & fundamentals of the company and hence is EPS neutral. However, it does have an indirect impact in terms of improving the sentiments for the stock and brings in more liquidity. Historically , we have seen run up in the stocks after Bonus announcements and stocks have given better returns post Bonus adjusted prices. So, essentially, it is a sentiment booster measure.</li> <li>The timing cannot be more right for the company to announce a bonus as the stock price of reliance Industries has been a laggard as compared to sensex performance due to the ongoing tussle between Mukesh Ambani and his younger brother Anil Ambani over the Gas supply pact. The Bonus issue will provide some impetus to the investor sentiments which was clouded by the ongoing dispute.</li> <li>The Bonus issue has been on account of two major milestones achieved by the company i.e., successful commencement of Gas production from its KG6 Basin and building of new refinery at reliance Petroleum.</li> <li>The Bonus issue is also applicable to shareholders of Reliance Petroleum shares pursuant to recent amalgamation of the company with RIL. The company has fixed Record date of 29th September for reckoning the members entitled to receive 1 Share of Reliance Industries for every 16 Shares held in Reliance Petroleum. </li> <li>The Record date for Bonus has not been announced yet.</li> </ul> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com22tag:blogger.com,1999:blog-12617262.post-70464666611882607742009-09-29T12:18:00.000+05:302009-09-29T12:19:41.594+05:30OIL India : Listing StrategyOIL India is going to list on NSE and BSE on Wednesday,30th September,2009.<br />There was a good response from QIB and HNI segment. However, the retail segment was oversubscribed 1.76 times. The Current Grey market premium for Oil India is in the range of Rs. 50-60.<br /><br />Investment Guru is of the view that the stock may list at a modest premium of Rs. 50-100 against its issue price of Rs. 1050. Though the fundamentals of the company are quite strong, it has the inherent limitations of sharing of Subsidy Burden and inadequate geographical spread which would keep a tab on its performance. Though the company has a impressive track record on On-shore drilling, it has yet to prove its expertise in off-shore segment.Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com11tag:blogger.com,1999:blog-12617262.post-21961860956308203202009-09-06T18:46:00.001+05:302009-09-06T18:46:48.767+05:30Stock Review : Uttam Galva Steel<h3><font color="#ff0000">Will Mittal factor change the fortunes for Uttam Steel ?</font></h3> <p>Stock : Uttam Galva Steel</p> <p>CMP : 113</p> <p>Book Value: 71.04</p> <p>EPS (Trailing) : 9.49</p> <p>As the performance of the stock suggest, Markets had a clue about it ! Uttam steel has already risen by 83% in just One month.  The stock has more than doubled in last 3 months. So what’s the buzz !!!  Global Steel King L.N. Mittal is making a debut in India by acquiring 35% stake in Uttam Steel.</p> <p>Mittal’s company Arcelor Mittal is all set to become the Co-promoter of the company. The promoters have signed an agreement to sell 5.6% stake in Uttam steel.  Arcelor Mittal will launch an open offer on September 7 to acquire balance 29.4% stake in the company. Mittal is offering a price of Rs. 120 per share for acquiring this stake.</p> <p>If the offer by Mittal remains unsubscribed, the promoters would transfer further stake to Mittal so that both have equal stake in the company.</p> <p> </p> <h5>How will this deal help Uttam Steel ?</h5> <p>Apart from giving foothold to Arcelor Mittal in Indian Steel sector, the deal would be a facelift for Uttam steel. The association with Mittal is surely going to be big boost to the brand name of Uttam steel.</p> <p>Uttam steel is set to get better availability of Raw Material. The company already sources around 50% of its raw material from Arcelor Mittal.</p> <p>It will also have an opportunity to transform itself from a galvanized steel producer to a integrated Steel major. It will have access to latest technology from Arcelor Mittal and access to new product segments and geographies.</p> <h4> </h4> <h4><font color="#ff0000">Demerger of Power Biz</font></h4> <p>Another important development is that recently  the Bombay high court has sanctioned the scheme of arrangement between Uttam steel and power and Uttam Galva Steel for the demerger of the power division of Uttam Steel and power into the company. The Scheme has got effective from 21st August,2009. </p> <p>The demerger of power division will help separate listing of this entity and help shareholders to unlock the value of their investment in the company.</p> <p> </p> <h5>Current Financials</h5> <p>For the Year ended 31st March, 2009 company posted a top line of Rs. 4372 Crore and Net profit of 100 Crore.  Though this was a growth of  over 38% over last year, the profit were lower by 24 Crore on account of high interest outgo and higher operating costs.</p> <p>Uttam steel clocked a turnover of 1073 Crore for the first quarter of the current year and a Net profit of 34.57 Crore.</p> <p>Investment Guru is of the view that both the developments i.e., Acquisition of 35% stake by Arcelor Mittal @ 120 per share and Demerger of power division hold good omen for the company and would not only boost its brand image but also enable it to log a impressive growth in coming years. </p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com36tag:blogger.com,1999:blog-12617262.post-84122234320649173552009-08-30T19:10:00.001+05:302009-08-30T19:10:34.704+05:30IPO Update : Jindal Cotex Ltd.<h3><font color="#ff0000">Too pricey to fit the bill – Avoid</font></h3> <p>Company : Jindal Cotex Ltd.</p> <p>Issue Price : Rs. 70 – 75</p> <p>Outlook : Avoid</p> <h5><font color="#ff0000"></font></h5> <h5><font color="#ff0000">About Jindal Cotex</font></h5> <p>Jindal cotex is engaged in the business of manufacturing of Acrylic, Polyester, and Polyester- Viscose, Polyester Cotton, combed and carded yarns, which are appropriate for apparels, suitings & knitted fabrics. Company has current installed capacity of 23,472 spindles for acrylic, cotton blended and polyester yarns. It manufacture and sell yarns under the trade name ‘JINDAL’. </p> <h5> </h5> <h5><font color="#ff0000">Objects of the Issue</font></h5> <p>The Company is setting up a new facility to manufacture cotton yarn with a capacity of 28,800 spindles in Ludhiana in Phase I.</p> <p>It will further add 21600 Spindles, Yarn dyeing facility and a Garment unit with capacity of 3000 pcs. per day in Phase II.</p> <p>The company would use the funds to invest in Subsidiary Jindal Medicot which manufactures Medical Textile products. It would also invest in another subsidiary Jindal Specialty textiles which manufactures PVC Laminated products.</p> <p><strong><font color="#ff0000">Financials</font></strong></p> <p>The company has put up an impressive top-line growth of 39% for year ended 31st March,2009. However the same momentum was not visible in the bottom line which grew only by 2.3% which suggest that operating cost increased in much bigger proportion.</p> <h5> </h5> <h5><font color="#ff0000">Overall Assessment</font></h5> <p>The company is a again a classical case of greedy promoters who are asking for more than their  worth. This a trend visible in Indian markets that as the stock markets gain momentum the promoters start flooding the capital markets with issue at a aggressive premium. I strongly believe that market regulators should do something about it in the interest of at least retail investors.</p> <p>Coming back to Jindal cotex, the company is asking investors to invest at a Pre issue P/E of 20.23 at lower band and 21.68 at the upper band while the Industry average is just 9.10</p> <p>Investment Guru is of view that investors should give this IPO a miss.</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com10tag:blogger.com,1999:blog-12617262.post-75292075075110094322009-08-26T12:19:00.002+05:302009-08-28T11:25:46.297+05:30NHPC IPO Allotment Status & Listing Strategy<p><img title="nhpclogo" style="BORDER-RIGHT: 0px; BORDER-TOP: 0px; DISPLAY: inline; MARGIN: 5px 5px 0px 0px; BORDER-LEFT: 0px; BORDER-BOTTOM: 0px" height="71" alt="nhpclogo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx64WG1im_oOLNklMPd09DOY7BXRFAt9q-6H83W6w0V-O89k0IspWnEOH4JTBSwZP9vbMDEvgOpVaYJZ5BdMVbpzci2iJfg0-YRqYKLyPR-w9Dx1r0jAzCfYME8d5jc_LdbiY/?imgmax=800" width="124" align="left" border="0" /> NHPC IPO allotment status is out. Click <a href="http://www.karvy.com/ipoStatus/">Here</a> to check your application status. NHPC IPO got overwhelming response similar to that of Adani power. The IPO got subscribed 23.5 times with retail segment subscribed by around 3.8 times. NHPC basis of allotment can be seen in table below. Though both Adani and NHPC IPO’s have generated tremendous response from the QIB segment, the retail oversubscription has been moderate and shows that IPO investors are still shy in applying for the IPO’s.</p><p><img title="nhpc boa" style="BORDER-RIGHT: 0px; BORDER-TOP: 0px; DISPLAY: inline; MARGIN: 5px; BORDER-LEFT: 0px; BORDER-BOTTOM: 0px" height="285" alt="nhpc boa" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtUjCx4931LWf-4B8ncVnryoEneGKAiT5AtR8UPcqEqcQNA7DI22V_oD7LE0jBlZwSG8xRu9N53yWrfRsAHrdXWhCw_EDCNYxS1RGshVno531tLSdk9dRe4ecnSR7NCBgu4ew/?imgmax=800" width="207" align="left" border="0" /> </p><p>The lukewarm or say powerless listing of Adani power has actually validated the fears of retail Investors. Both Adani and NHPC IPO’s were considered to be priced aggressively and Adani stock has already been punished. Now is it turn of NHPC IPO ? Let’s see. NHPC stock is expected to list in first week of September.</p><p>Government has fixed NHPC offer price at Rs. 36 per share, i.e., on the higher band of the offer price. Prior to listing of Adani power, the Grey market premium of NHPC was quoting at Rs. 12-14 per share. However, the latest grey market premium is in the range of Rs. 4-5 which shows that listing for NHPC might be lackluster.</p><p>NHPC is the largest Hydro power generator in the country with substantial experience in design, development, execution and operation of Hydro-Electric Projects (HEP). The company has 13 HEP plants in operation with an installed capacity of 5,175 MW. It is currently undertaking construction of 11 HEP plants with a total installed capacity of 4,622 MW and 8 of these projects totaling 1492 MW are scheduled for completion by the year 2011-12. NHPC generated 16,582 Million Units (MUs) in 2008-09 as against 14,811 MUs in 2007-08. </p><p>On consolidated basis, NHPC reported an Operating Income (OI) of Rs 34.94 billion and Profit After Tax (PAT - excluding minority interest) of Rs 12.44 billion in 2008-09 as against an OI of Rs 29.31 billion and PAT of Rs 12.07 billion in 2007-08.</p><p>NHPC’s projects are located in India’s Northern and North-Eastern regions, which have favorable hydro resources, thereby ensuring sufficient water availability for power generation. There has been comparison between NTPC and NHPC over the valuations but one clear advantage that NHPC has is that its operation does not have fuel requirement unlike NTPC which makes its operating cost very competitive.</p><p>Another advantage of NHPC is that not only are its plants located in High energy deficit areas which ensures consistent demand, NHPC sale of Electricity is backed by LC’s from banks which can be used in case of delay in payments. Further, it is supported by a tripartite agreement between the customer state,RBI and GoI, whereby NHPC can recover the payments from the central plan assistance given to the state by GoI. As a result of these measures, NHPC, for the last few years has reported almost 100% collections against the billing to the respective states. </p><p>On the Risk aspects, NHPC projects have long gestation period and hence the the proposed projects would start operating only from 2010-11 onwards. Talking of the Financials, NHPC ROCE stands at 10.18% and RONW stands at just 6.58% due to its large equity base. </p><p>Investment Guru’s overall assessment is that NHPC is a stock which may provide good returns over long term (2 Years time frame) based on its fundamentals. The stock may list in the range of Rs. 39-42 and may remain in this range from short term perspective. </p><p><strong>Update: NHPC is going to list on NSE and BSE on Tuesday, 1st September,2009</strong></p>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com31tag:blogger.com,1999:blog-12617262.post-78513811341388348602009-08-22T13:04:00.001+05:302009-08-22T13:04:39.718+05:30File your ITR-V form till 30th September,2009<p>The Income Tax department has extended the time limit for filing of ITR-V form.  The ITR-V form relating to returns which have been filed electronically (without digital signature) on or after 1st April, 2009 can now be filed on or before the 30th September, 2009 or within a period of 60 days of uploading of the electronic return data, whichever is later. </p> <p>The ITR-V should continue to be sent by ordinary post to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100.</p> <p>To assist taxpayers, a limited call center service with two agents has been established at ITD-CPC, Bengaluru. Taxpayer queries on status of ITR-V receipt at CPC, Bengaluru will be answered on 080-43456700 between 9:30 AM to 6 PM between Monday to Friday. The service will be available in English, Hindi and Kannada.</p> <p> </p> <h4>Check your E-filing Processing Status online</h4> <p>If you have e-filed your Income tax return and have already submitted the ITR-V through ordinary post, you might be interested in checking the status of your e-filing. Now you can login in to your account on Income Tax department website and check the status of your filing.</p> <p>Go to <a title="https://incometaxindiaefiling.gov.in/portal/index.jsp" href="https://incometaxindiaefiling.gov.in/portal/index.jsp">https://incometaxindiaefiling.gov.in/portal/index.jsp</a></p> <p>Log ton to your account using your PAN No. and password.</p> <p>Once you log in Go to “ MY Accounts”</p> <p>In “My Accounts” you will find a option of “E-Filing Processing Status”…Click this.</p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIi_b0escfOn5nLcSW4pOxP1IkQaAgApg9EC6AIMKkRe4i3l27Z22d34C0GHOXBAnWYvhdcmzCpzKXqFT-__VVwOxEhGyR_SscVYi7lSZ9Ssdr26X6NtzUGG3nSAu1JV0Rl4Q/s1600-h/e-file%5B4%5D.jpg"><img title="e-file" style="border-right: 0px; border-top: 0px; display: inline; margin: 10px 10px 5px 5px; border-left: 0px; border-bottom: 0px" height="175" alt="e-file" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkalTaCmHzF3DDdnMQjUmwImx6fxqDEgukqACl-7kc4e7jicGgjnhbrYwvWy65lSzUq0y5L6ncVd4iADfjuyhZGsDoW1_fgSohafjctles8Fvjhbm410Vi6sHFemxnpnkgl8c/?imgmax=800" width="281" align="left" border="0" /></a> </p> <p>Now enter your E-filing Acknowledgement number (This can be found from the ITR-V form that was generated when you uploaded your return online. A copy of the same was also sent to the email Id mentioned in your return) and Assessment Year to get the status of your ITR-V form.</p> <p> </p> <p>You can also call up  the Call center numbers given above to find status of your ITR-V submission.</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com0tag:blogger.com,1999:blog-12617262.post-12150691552317321382009-08-19T17:43:00.001+05:302009-08-19T17:43:16.870+05:30Stock Review: South Indian Bank<p><img title="siblogo" style="border-right: 0px; border-top: 0px; display: inline; margin: 5px; border-left: 0px; border-bottom: 0px" height="81" alt="siblogo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH4n_o0gy_Wn-Ev_YHy_CJFBWXqq6PlAU1Q3yjKFXxzoZv2EGKMJSC4oByP1SeTImQ4SbABOSdmNpI8LcgFyHQWKEsKwteDiEqYYyna3T8SXd65ADfDBGcP3dVQJgKGrheKyM/?imgmax=800" width="111" align="left" border="0" /> </p> <p>Stock : South Indian Bank</p> <p>CMP: Rs 108.5    Book Value : Rs 113.76</p> <p>Industry : Banking – Private Sector</p> <p> </p> <p>Creation of the Swadeshi movement in India to help the business community from the clutches of greedy moneylenders, South Indian Bank has travelled a long distance in converging itself to a next generation banking destination. </p> <p>Investment Guru is of the view that South Indian Bank is a good buy from short term as well as medium to long term perspective.</p> <ul> <li>SIB has put up a good show on a consistent basis. The advances have grown from Rs 5300 Crore  to 11800 Crore in last 4 years.</li> <li>Interest Income has grown at a CAGR of 33.5% over the period of last 4 years.</li> <li>SIB has also shown consistent growth in net profits with a CAGR of 100% over last 3 years.</li> <li>The stock offers an attractive dividend yield 2.78% in addition to growth prospects which creates a good combination for investors.</li> <li>SIB commands strong brand loyalty among its NRI customers.</li> <li>With EPS of 19.14 the stock is currently quoting at a Price to Book Value of 0.95 and a PE of 5.64 which shows that the stock has a strong potential to move up based on its recent performance as compared to its peers which are quoting between PE multiples of  8 to as high as 35.</li> <li>The Q1’09 results of the bank were encouraging with bank reporting 60 Crore Net profit and quarterly EPS of 5.32. Net NPA’s fell to 0.39% as compared to 0.49% recorded in Q1’08.</li> <li>FII’s hold 36.22% stake in the company as compared to 42.7% last year. However, there is no promoter holding which is partly a reason for comparative lower valuations assigned to the bank. On the other hand, this makes it a hostile takeover target and provides investor a possibility of windfall gains if that happens.</li> </ul> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com14tag:blogger.com,1999:blog-12617262.post-9224333177296415842009-08-18T11:33:00.001+05:302009-08-18T11:58:56.988+05:30ASBA- Welcome step for IPO Investors<p>Gone are the days when IPO investors had to worry about getting back their refunds in time and loosing on the interest income for the money they invested in the IPO during the period from application to getting back the refund. SEBI has introduced the mechanism of ASBA which would act as a right step in providing relief to the IPO investors from worries of delay in refunds and loss of interest income.</p> <p> </p> <h5>What is ASBA ?</h5> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoSjkp6TVGnit0ot_45eOG0Ib8ltYcWD8GrWiOcf7qWM3uqoV82hvR5GdgvFVg6w9fKHSrEewN2EO5kbx5JXyKY5pAv4_F2ifAfIQBk0H_0AO859GAVuiuGagllC1rviY-d4s/s1600-h/asba%5B5%5D.jpg"><img title="asba" style="border-right: 0px; border-top: 0px; display: inline; margin: 5px 5px 0px; border-left: 0px; border-bottom: 0px" height="117" alt="asba" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgvsYjKxtu7w_Pq5hmcJ7QUxY-rQbfNaXK2wYrGrWFbRe5gOAGJKE5AmZ1h8qx4JEgs0lp9Nr6POG98q_cylw9SR1-a5DLydSps_euFnswMRNjb76obHJLvZb2KODujuxp6sk8/?imgmax=800" width="128" align="left" border="0" /></a> ASBA means “Application Supported by Blocked amount”. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed.</p> <p>To put it in more simpler words, when you apply for an IPO now,  you don’t have to pay the amount upfront. You just give an instruction to the bank to block the amount in your bank account to the extent of your application amount. So you don’t pay anything to the company. The application amount remains in your bank account and you continue to earn interest on it . The hold will be released once the allotment is made by the company. If you have got allotment, the amount to the extent of shares allotted would be debited to your account and the hold on balance of amount would be released. You cannot withdraw the amount of money blocked against an IPO application till the blocked amount is released on allotment/refund.</p> <p>Currently the facility is available only to IPO’s with Book Building route. SEBI has issued a list of Self Certified Syndicate Banks (SCSB) who are authorized to accept ASAB application forms. Currently 10 banks have enrolled for providing this facility. Others are expected to enroll soon. </p> <p>For those who apply for IPO through Online trading and their Banks are classified as SCSB, the option of applying through ASBA has been activated by default so you don’t need to take any additional steps.</p> <p>Detailed Guideline from <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FNzY1ZjEzOGYtZDJhMS00NmI2LWJkY2ItMzFjZDBiMjM4MDY4&hl=en">SEBI</a></p> <p>List of <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FNGY3MWI4YzItZDczNC00M2FiLTllYzItODE5MjE5YmIyYzMw&hl=en">SCSB’s</a></p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com15tag:blogger.com,1999:blog-12617262.post-78008843833166602952009-08-17T13:53:00.002+05:302011-03-07T13:20:45.800+05:30NBCC offers affordable flats around NCR for 6.75 Lac<div dir="ltr" style="text-align: left;" trbidi="on">Are you looking for a One bedroom flat with Balcony, Tiled flooring in living & Bed rooms, Kitchen with ceramic walls and brass fittings and all these at a price of 6.75 Lac ? NBCC has launched the “NBCC town” to materialize your dreams.<br />
<img align="left" alt="nbcc logo" border="0" height="73" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwdiBYoE7SW-Krk7QpEAfMgEVibEw1zPiMnPTI-Fbka0Jo2hKjRAAFANhpN2TjF2b0JdG-Q4v_zHjvyc0mrESO48dHbbStREy7obIHTKdPIDLHBVwldVaEVR2Ot-q5_Gr-3-0/?imgmax=800" style="border-bottom: 0px; border-left: 0px; border-right: 0px; border-top: 0px; display: inline; margin: 5px 10px 0px 5px;" title="nbcc logo" width="88" /> After Tata Housing, its the turn of National Buildings Construction Corporation(NBCC) Limited to launch affordable housing scheme. NBCC has launched “NBCC Town” scheme at Khekra on Delhi – Sharanpur Highway. 19 Km Away from the ISBT, the flats start at a price of 6.75 Lac for One Bedroom Flat (493 Sq. ft.) at 4th Floor of Lotus Apartments. The scheme opens from 25th August,2009.<br />
NBCC has come up with four type of apartments. The Lotus apartments (4 Storey) will house One bedroom Flats. Lilly apartments (4 storey) will house 2 bedroom flats. Tulip Apartment (4 storey) will house 3 Bedroom and Marigold Towers (7 storey) will also house 3 Bedroom flats but will have facility of stilt Car parking. You can check the prices of different flats on offer here.<br />
If you are a working or retired Government / PSU Employee then you are eligible for a special discount of 5%.<br />
<img align="left" alt="nbccplan" border="0" height="277" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRJulJvW0oPM7RAJA63VZYo41IS2ikqw4uWb6nFnjMvy1eoXUIh-joWdHdhRD0D0NzY8g-ie7vYbjkGZhtiQbxT38s96nvx42idnjqto5yfL-8l2TkITQdIZDbRBjwSvD2-HE/?imgmax=800" style="border-bottom: 0px; border-left: 0px; border-right: 0px; border-top: 0px; display: inline; margin: 5px;" title="nbccplan" width="285" /> <br />
The payment schedule and plan has also been designed in a reasonable manner. The application form is available at the NBCC Bhawan at Lodhi Road and Sector 41 Noida at a price of Rs 100.<br />
The application form for NBCC Town can be downloaded <a href="http://www.nbccindia.com/nbccindia/public/jsp_pub/loni_details.jsp#">here</a>.<br />
The forms are also available at designated branches of HDFC Bank, Union Bank, Corporation Bank and Axis Bank.<br />
<br />
The costliest flat in the scheme is located at the First Floor in the Marigold Towers with an area of 1100 Sq. Ft. and is prices at 17.8 Lac for 3 Bedrooms with 2 Balconies. Car parking will cost additional 1.25 Lac for flats at Marigold Towers.<br />
Optional Open parking space is available for other apartments at a price of Rs. 50,000.<br />
NBCC is also going to launch 2/3/4 Bedroom flats apartment and 4/5 bedroom flats with Penthouse at Gurgaon shortly.<br />
Location Map of <a href="http://www.nbccindia.com/nbccindia/public/pdf_data_pub/Loni/LOCATION.pdf">NBCC Town</a><br />
<a href="http://www.nbccindia.com/nbccindia/public/pdf_data_pub/Loni/site%20plan.pdf">Master Plan</a><br />
Detailed Price <a href="http://www.nbccindia.com/nbccindia/public/pdf_data_pub/Loni/Payment.pdf">Schedule</a><br />
<br />
<strong>Update on 06th March,2011</strong><br />
<a href="https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B3-kK5dY849FZTVhYjYxZWYtOTU1Mi00YTAyLTgwMTktYzQyNDg2ZDZmOThk&hl=en&authkey=COezqqcP">List of Applicants</a> who are eligible to apply for <strong><span style="font-family: Arial; font-size: x-small;">'NBCC Heights' at Sector-89, Gurgoan</span></strong><br />
<span style="font-family: Arial; font-size: x-small;">The Scheme is open from 25th February to 16th March, 2011</span><br />
<span style="font-family: Arial; font-size: x-small;">Download <a href="http://nbccindia.gov.in/nbccindia/public/jsp_pub/gurgaon_form.jsp">Application Form</a></span></div>Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com208tag:blogger.com,1999:blog-12617262.post-46911171373139975392009-08-16T18:43:00.001+05:302009-08-16T22:21:10.357+05:30Adani Power- IPO Allotment & Listing Strategy<p>If you have applied for the Adani Power IPO, by now you would have become owner of this yet to be operational power generation company which is part of Adani Group. Check Allotment Status for <a href="http://mis.karvycomputershare.com/ipo/">Adani Power</a>. </p> <p> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsOfRSXtZwIlnGZhuhyphenhyphen1V5FBVTHX7dNfZ9TphxljuIZ_1tDUOR-pRHPMe_854VxHn99w0Tx1j4LVsEX5MJ-GPnhUynywySm-5TAyD3xnERj97lTkClcG0wPj804njQKZlZHtQ/s1600-h/adani_logo%5B9%5D.gif"><img title="adani_logo" style="border-top-width: 0px; display: inline; border-left-width: 0px; border-bottom-width: 0px; margin: 5px 15px 5px 5px; border-right-width: 0px" height="91" alt="adani_logo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguGNm_-4sxL_Nngl0thOSJ07gNyiWCPg1Wqy7OHzG6b7GKHIXMAwfgtsLwDsqm_U2NDbdrDKwYeYWgfO8GcGOtFunSo5cW_c_GexatdVNMAvYtEx8uUbbLy8Hgl7FH_YI2P2o/?imgmax=800" width="70" align="left" border="0" /></a> The Adani IPO has brought life back to the ailing primary markets. It has received tremendous response from the Qualified Institutional Buyers who have shown huge apatite for the stock. The QIB portion was subscribed more than 39 times. The Retail Investor segment got oversubscribed by just 3 times. A similar pattern was also seen in NHPC IPO. This trend shows that retail investor has still not come out openly and is still licking the old wounds caused by turmoil in stock markets as well as dismal performance of IPO’s. However, on a positive note it shows that the interest in primary markets is building back and it speaks of better prospects for the upcoming issues. </p> <p><img title="adani basis ipo" style="border-top-width: 0px; display: inline; border-left-width: 0px; border-bottom-width: 0px; margin: 0px 10px 5px 0px; border-right-width: 0px" height="294" alt="adani basis ipo" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7kTvW-qkAGWY6ViiH7jCc-2o9VAYis6Z_hltjTeA2plKhAx-0DkkkNLpVqztpi6f9ypHqX6SluZwOyfEYfEN4p_bDwKTRL3hSYp0fDILCdrVrLO-oMUrTPn3G7gPU3lnrNW4/?imgmax=800" width="230" align="left" border="0" /> </p> <p>Another thing which was quite evident from the subscription pattern was that the investing community rates India as a good investment opportunity and in particular the pace at which  infrastructure reforms are expected to take place has aroused significant interest in Power sector. In India the generation of power is far less than the demand which is estimated to rise at  a far greater rate than in last 5 years.</p> <p>According to the 17th Electric Power Survey, India’s peak demand will reach approximately 152,746 MW with an energy requirement of approximately 968 billion units by fiscal year 2012. By the fiscal year 2017, peak demand is expected to reach 218,209 MW with an energy requirement of 1,392 billion units. Currently we have a Peak Availability of just 97,669 MW. This shows the tremendous scope available to companies in power sector. </p> <p> </p> <h4><font color="#ff0000"></font></h4> <h4><font color="#ff0000">Listing Strategy for Adani Power</font></h4> <p>The stock is expected to list on August 20th,2009. We have been hearing a lot about overpricing of the IPO by the Adani’s. Whether the issue was overpriced or not will be finally decided by the markets. The company has not started operations yet and hence doesn’t have any earnings data.  At Rs 100 per share the company would quote at a Price to Book Value of 2.8. NTPC, an existing profit making company is currently priced at 2.8 times its Book Value. This shows that Adani Power has been priced aggressively. However, one should remember the fact that Adani has certain impressive operational advantages such as location of projects in areas where peak time shortages is maximum, leverage of  presence of Adani group in Coal mining, Shipping as well as power trading. </p> <p>From a long term prospective the stock looks very promising. However from the current perspective the stock is priced aggressively. The current grey market premium is ruling at  Rs. 8-10. The stock is expected to list in the range of  Rs 110-115 and may go up or down depending on the buying by the QIB’s to cover for the shortfall in allotment.  Investment Guru is of the view that Investors may book profits at a price above Rs 115 and take advantage of listing euphoria. Long term Investors can re-enter the stock at lower levels once the listing sensation is over.</p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com13tag:blogger.com,1999:blog-12617262.post-13852603648320389762009-08-15T16:11:00.001+05:302009-08-15T16:40:55.572+05:30New Tax Code 2009 : Rewiring the Taxman<h4><font color="#ff0000">New Code aims to make tax laws and rates, Tax payer Friendly</font></h4> <p><img title="taxfriendly" style="border-top-width: 0px; display: inline; border-left-width: 0px; border-bottom-width: 0px; margin: 5px 15px 5px 5px; border-right-width: 0px" height="84" alt="taxfriendly" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidN4rplKnbbLXhYeKXqvskhrJjTpfnhBfHPaQbDTjbmU9Blm_iBpM1vKKrw3quH0cMJiiEurDkmaZDvfznRNLlk0vhkJRV_dpdfSqR1IX-G6Jkih6L50RVyIGHb3qXunEs3QI/?imgmax=800" width="92" align="left" border="0" /> I was recently discussing with a group of friends that the Indian tax rates structure needs a definite shift if the government wants voluntary compliance of tax laws and wants to increase the number of tax payers in the country. One of the discussion points was that government should introduce single tax rate of say 10% on the taxable income for individual tax payers and should do away with so many slabs and deductions. One suggestion was that income beyond 5 Lac should be taxed at 10% with no rebates or deductions whatsoever.</p> <p>And here comes the New Direct Tax Code Bill, 2009  which attempts to simplify the lives of the tax payers.  Though the bill does not fulfill the wish-list of our discussion, it is surely a step towards providing a more tax-payer  friendly and simplified tax structure.</p> <p>Following are the brief highlights of the New Direct tax code Bill,2009</p> <ul> <li>The objective of the new tax code is to establish an efficient , effective and equitable direct tax structure in the country. </li> <li>All direct taxes like Income Tax, Dividend distribution tax (DDT), Fringe benefit tax (FBT) and Wealth tax will be covered under this single tax code. </li> <li>New Tax Rates will be applicable w.e.f. Financial year 2011 as under </li> </ul> <p><img title="newtaxrate1" style="border-top-width: 0px; display: block; border-left-width: 0px; float: none; border-bottom-width: 0px; margin-left: auto; margin-right: auto; border-right-width: 0px" height="223" alt="newtaxrate1" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu7IK2lRIzoSIATbmo0uO4Ch3whBM7R99z1NjF1P-gignxFJF_pUI69GRZ6UzJ4OL39tryCWsl4ksUAKErCGVSMCCmiAFKl-YRw24IrNK4Mk_P2fb3AhEAygTDMCEyiQqECjA/?imgmax=800" width="443" border="0" /> </p> <p><img title="newtaxrate2" style="border-top-width: 0px; display: block; border-left-width: 0px; float: none; border-bottom-width: 0px; margin-left: auto; margin-right: auto; border-right-width: 0px" height="197" alt="newtaxrate2" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8mynl0Z1mRi1GCoMlNcjEj_kZV07S_z1cM9Lw8LXOFG6PB9NsTC2ZEmejbSSVvr8FmxzD7RiA9qlX2xyQ3r2D3QjIwiLzFUy0U44dEGnOsHBQk_SSmFw1lTFeungts7TnTxI/?imgmax=800" width="445" border="0" /> </p> <p><img title="newtaxrate3" style="border-top-width: 0px; display: block; border-left-width: 0px; float: none; border-bottom-width: 0px; margin-left: auto; margin-right: auto; border-right-width: 0px" height="186" alt="newtaxrate3" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBu646LhFmIu_sfD632hseE2TLIDbphNYBNg2oksqUfES-9vYO6cGk_LJZ_u-eHKxjVWZjrCdyxBrj6BWsERBKrfwSVmqDdRDiApYseTuAF9x4SOEf8l4aKoicUgcWGvB2vDU/?imgmax=800" width="450" border="0" /> </p> <ul> <li>Savings will now be taxed on EET basis. This means that Savings when done under designated schemes would be exempt from tax in the year the saving is done (First ‘E”). It will continue to be exempted together with the accumulations/accretions till the time they remain invested (that means till they are not withdrawn, this is Second ‘E’). The savings will be taxable at normal tax rates in the year in which withdrawal is made (this is ‘T’). </li> <li>However, accumulated balances as on 31st March,2011 in the Provident Fund will not be taxed. </li> <li>Deduction on account of savings has been increased from current 1 Lac to 3 Lac. However, since the new code doesn’t mention deduction in respect of Housing loan, the same may go. </li> <li>Dividends will continue to remain tax free in the hands of Investors. </li> <li>Capital Gains would now be taxed as income. The concept of short term and long term capital gains has been removed from tax perspective. Indexation benefit would be available on asset held for more than one year. </li> <li>The indexation base has been changed from 1981 to 2000. </li> <li>Since all capital gains are now taxed, Securities Transaction Tax (STT) has been abolished under the new tax code. </li> <li>Salary received in form of perks, perquisite, LTA, Rent free accommodation, Medical reimbursement will now form part of Income and will be taxable. </li> <li>Wealth Tax has been Re-introduced. Net Wealth in excess of Rs. 50 Crore  will be taxed @0.25% </li> <li>In addition to deduction of Rs 3 Lac for notified savings schemes, Rs 15,000 deduction will be available for Medical Insurance Premium for self and family , and another Rs 15000 for parents. Up to Rs 50,000 can be claimed as deduction for treatment of disabled dependant , Rs 40,000 for prescribed diseases. Rs. 50,000 deduction would be available to handicapped and Rs 75000 for person with severe disability. </li> </ul> <p>The New tax code is in discussion stage. You can give your comments and suggestions on the same by writing an email to <a href="mailto:directtaxescode-rev@nic.in">directtaxescode-rev@nic.in</a></p> <p>Keep a watch on this blog for posts related to implications of new tax code.</p> <p>Download <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FOTZmMjkxMmUtN2Y1Ny00MWM4LWFmMjgtY2EyNDA0ZDE0YmVm&hl=en">Discussion Paper</a> </p> <p>Download <a href="http://docs.google.com/fileview?id=0B3-kK5dY849FZGVlODdlMDQtODRkMS00YzdjLWIxZTYtNmU4MmQ1NGMwMjNl&hl=en">Direct Taxes Code Bill, 2009</a></p> Rajesh Sonihttp://www.blogger.com/profile/14651028830972119144noreply@blogger.com7