CCI approves merger of subsidiaries with Reliance Infrastructure

The companies are either directly or indirectly wholly-owned subsidiaries of RInfra and the ultimate control over them remains with it

Competition watchdog CCI has approved the proposal of Reliance Infrastructure (RInfra) to merge five wholly-owned subsidiaries with itself.
It has also approved the demerger of the container business of Reliance Infrastructure Engineers Pvt Ltd (RIEPL) from the company.  

The five subsidiaries are Reliance Energy Ltd (REL), Reliance Energy Generation Ltd (REGL), Reliance Goa and Samalkot Power Ltd (RGSPL), Reliance Infraventures Ltd (RIVL) and Reliance Property Developers Ltd (RPDPL), the Competition Commission of India (CCI) said in its order.

"...it is observed that for the financial year 2010-11, the turnover of REL, REGL, RGSPL, RIVL, RPDPL and RIEPL from business operations is either nil or negligible," the order said.

It added that these companies are either directly or indirectly wholly-owned subsidiaries of RInfra and the ultimate control over them remains with it.

All these five companies are currently not carrying out any business activities, the order said, however, RIEPL is engaged in engineering, design and consultancy services and in container train operation business.

"Considering the facts on record and the details provided in the notice given under section (2) of Section 6 of the Act (Competition Act, 2002) and the assessment of the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination under sub-section (1) of Section 31 of the Act," it said.

RInfra is engaged in generation, transmission and distribution of electricity and in undertaking engineering, procurement and construction contracts for the power stations and related activities, it added.

In the early afternoon, Reliance Infra was trading at around Rs575.80 per share on the Bombay Stock Exchange, 1.12% down from the previous close.

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Central Bank hopeful of maintaining NIM at 2.53% in Q4

“Net interest margin will be the maintained (at the same level of the last quarter). But, the NPA level may not see a dramatic change during the current quarter,” the Central Bank official said

The Central Bank of India (CBI) is hopeful of maintaining its net interest margin (NIM) at the current level of around 2.53% in the current quarter, a top bank official said. However, the official said the bank may not see drastic changes in the non-performing asset (NPA) quality during January-March quarter.

“Net interest margin will be the maintained (at the same level of the last quarter). But, the NPA level may not see a dramatic change during the current quarter,” the official told PTI. During the last quarter (September-December), the gross NPA of the bank rose to 3.69% from 2.34% a year earlier. Similarly, its net NPA rose to 2.04% from 0.71% reported a year ago.

Earlier, the bank had said as it is in the process of monitoring loan accounts up to Rs5 lakh through the system by March, it may add some fresh slippages in the last quarter. However, the official maintained the NPA level would begin to come down from the first quarter of the next fiscal.

“The NPA movement will stabilise and start coming down from the first quarter of next financial year.” The public sector bank posted a 72% drop in its net profit to Rs113.24 crore in the third quarter against Rs404 crore a year ago. Its total income grew 21.9% to Rs5,099 crore during the period.

In the early afternoon, Central Bank of India was trading at around Rs96.85 per share on the Bombay Stock Exchange, 1.48% down from the previous close.

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Rs2.73 trillion of I-T dues locked up in disputes: Govt

There were 1,159 company cases where the dues are more than Rs10 crore, involving a net outstanding demand of Rs1,00,836 crore, Minister of State for Finance SS Palanimanickam informed.

As much as Rs2.73 trillion of outstanding income tax dues are locked up in tax disputes at various levels, Parliament was informed.

“As on 30 September 2011, a net amount of Rs3,50,000 crore approximately is outstanding as income tax dues, out of which Rs2,73,000 crore approximately is locked up in tax dispute at various levels,” Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.

On the question of steps being taken to recover the pending dues and reduce unnecessary litigation, he replied that the “Income Tax department was using all measures for the recovery... as per the provisions in Income Tax Act, 1961.”
There were 1,159 company cases where the dues are more than Rs10 crore, involving a net outstanding demand of Rs1,00,836 crore, he informed.

On a question on any company from whom tax worth more than Rs1 crore is due for recovery, he said, “The details ... are not being centrally maintained and ... this shall involve substantial manpower and may affect the core functions of the department.”

Explaining the steps taken to reduce unnecessary litigation, Palanimanickam said the threshold limits for filing appeals before Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court have been enhanced.

On recovery target on pending dues for 2011-12, the minister said the target for cash collection out of arrear demand for 2010-11 and 2011-12 are Rs13,906 crore and Rs16,954 crore respectively.

To another question on the amount of revenue collection till December 2011, finance minister Pranab Mukherjee, in written reply, said, “Total direct taxes realised during April-December last year were Rs3,23,955 crore, up by 8.4%, over the corresponding period of previous year.”

Similarly, total indirect taxes realised during April-December were Rs2,65,448.15 crore, up by 17% over the corresponding period of the previous year, he added.

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