Chola MS raises additional Rs50 crore capital for business growth and expansion

Chola MS’ networth, which was Rs257 crore in March 2011, has increased by Rs50 crore through this infusion by its promoters

Cholamandalam MS General Insurance Company Ltd, a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group Japan has enhanced its capital base by Rs50.05 crore through a rights issue for growth and expansion plans. The networth of the company which was Rs257 crore in March 2011 has increased by Rs50 crore through this infusion by its promoters.

SS Gopalarathnam, managing director, Chola MS said, “This additional capital infused in our business will be utilised for our business growth and expansion. We are well on our way to achieve our business plan of Rs1,200 crore for the current year.”

Chola MS has achieved a gross written premium (GWP) of Rs546 crore during the April-August 2011 period thereby registering a growth 36.9% over the same period last year. In 2010-11, the company achieved a GWP of Rs968 crore. It has 96 branches and over 7,500 agents across the country.

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Government considering raising FDI cap in single-brand retail

“We are seriously considering to raise the bar further—that means to allow increased FDI,” commerce and industry minister Anand Sharma said. However, he did not elaborate on how much percentage it needs to be raised

New Delhi: The government is ‘seriously’ considering raising the 51% cap in foreign direct investment (FDI) in single-brand retail business, reports PTI quoting commerce and industry minister Anand Sharma.

“We are seriously considering to raise the bar further—that means to allow increased FDI,” he said at a CII event on Indian luxury market here.

At present, the government allows 51% FDI in single-brand retail businesses run by global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci.

However, he did not elaborate on how much percentage it needs to be raised. “How much it is, only when we take the decision you will get to know.”

He promised that the government would create an enabling environment for investors. “You bring in FDI or partnership, surely it will be a game-changer.”

Mr Sharma said he would ask the finance ministry to lower tariff barriers as well. “It’s the domain of the finance ministry. I will be meeting some (officials) of them today and we will see what we can do.”

On India-EU free trade agreement, Mr Sharma said the chief negotiators are engaged. “This has taken us long. I have spoken to the EU Trade Commissioner. We must bring it down to a closure... Once the FTA is signed, it will open a pathway for greater cooperation among the nations.”

India is in talks with the EU, its biggest trading partner, since June 2007 for liberalising trade in goods, services and investment through a Broad-based Trade and Investment Agreement (BTIA). Already 13 rounds of talks have taken place.

Dismissing Crisil’s lower GDP forecast of 7.6% for 2011-12, he said: “India will definitely have 8% growth because of its consumption patterns and higher saving rates.”

Crisil has scaled down the growth projections for India in view of the deteriorating global economic scenario and “grim investment climate in India on account of the policy environment”.

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Companies Bill has final shape, Cabinet to take view soon: Khurshid

The new Companies Bill, which was tabled in the backdrop of the Rs14,000 crore Satyam fraud, promises greater shareholder democracy and stricter corporate governance norms. The Bill has introduced ideas like mandatory corporate social responsibility, class action suits and a fixed term for independent directors

New Delhi: Law minister Salman Khurshid today said the Companies Bill, 2009, which seeks to replace a half-century-old Act, has taken final shape and Cabinet will soon take a view on it, reports PTI.

"I think he (corporate affairs minister Veerappa Moily) has sent the Cabinet note. It takes a while for the Cabinet note to go through various processes and then come to the Cabinet. I think the final shape has been given and it should come to the Cabinet soon," Mr Khurshid said on the sidelines of an event to mark the formation of the Corporate Knowledge Foundation here.

Mr Khurshid, who earlier held the corporate affairs portfolio, also expressed hope that the Bill would be passed in the Winter Session of Parliament.

The Parliamentary Standing Committee on Finance had given its observations on the Bill in August 2010.

The new Companies Bill, which was tabled in the backdrop of the Rs14,000 crore Satyam fraud, promises greater shareholder democracy and stricter corporate governance norms.

For the first time, the Bill has introduced ideas like mandatory corporate social responsibility (CSR), class action suits and a fixed term for independent directors.

Among other things, it also proposes to tighten the laws for raising money from the public. The Bill also seeks to prohibit any insider trading by company directors or key managerial personnel by treating such activities as a criminal offence.

Further, it has proposed that companies should earmark 2% of their average profit of the preceding three years for CSR activities and make a disclosure to shareholders about the policy adopted in the process.

The Companies Bill (2008), which lapsed with the dissolution of the 14th Lok Sabha, was re-introduced in August 2009.

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COMMENTS

Nagesh Kini FCA

5 years ago

This Bill has been hanging fire. The Final Draft ought to be put on public domain to enable Co. Law professionals like SD Israni, Narayan Varma, Kanu Doshi to meet at ML Foundation to file Final suggestions on Auditors' Report, Corporate Governance, Auditors' rotation etc. Earlier the better.

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