Retirement
Employees provident fund rate to be 8.80 percent
Chennai : The Central Board of Trustees of Employees' Provident Fund Organisation (EPFO) on Tuesday recommended an interest rate of 8.80 percent for 2015-16 on its retirement funds of employees, said a member.
 
"The interest rate recommended is 8.80 percent while the employee representatives at the meeting wanted at least 8.95 percent," Prabhakar J. Banasure, a board member and secretary, Bharatiya Mazdoor Sangh (BMS), told IANS.
 
The board meeting held here was chaired by union Labour Minister Bandaru Dattatreya.
 
"The minister said the rate is interim interest rate. This is something of a new procedure followed by EPFO," Banasure added.
 
According to him, the interest rate could have been declared after the 2015-16 balance sheet was audited.
 
He said if the interest rate is fixed at 8.95 percent, the surplus will be around Rs.91 crore but at 8.80 percent, the surplus would be around Rs.673 crore.
 
"The chairman said the market is going down and hence higher rate cannot be recommended now," Banasure said.
 
He said Rs.31,844 crore was the amount available to be distributed as interest to the EPFO subscribers.
 
Incidentally, EPFO's financial audit and investment committee earlier said there is potential to offer 8.95 percent interest rate.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nissan sends JV termination notice to Ashok Leyland
Chennai : Japanese automobile major Nissan Motor Company has sent a notice to Ashok Leyland Ltd terminating its technology development joint venture Nissan Ashok Leyland Technologies Pvt. Ltd over non-payment of royalty, said a source.
 
The joint venture company is owned in 50:50 by the two partners.
 
Curiously, the termination notice comes soon after Ashok Leyland Ltd sent a legal notice to Nissan for using the equipment owned by another joint venture company to roll-out cars instead of light commercial vehicles (LCV).
 
"It is true that we have issued a legal notice to Nissan. As the matter is sub-judice, I cannot comment further," chief financial officer Gopal Mahadeven said here on February 12.
 
Indian commercial vehicle-maker Ashok Leyland and Nissan Motor Company had formed three joint ventures.
 
The first joint venture is to make LCV's under the name Ashok Leyland Nissan Vehicles Pvt. Ltd. in which Ashok Leyland owns 51 percent while Nissan owns the rest.
 
The two warring partners have two more joint ventures -- Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company owned 51 percent by Nissan and 49 percent by Ashok Leyland; and Nissan Ashok Leyland Technologies Pvt. Ltd., the technology development company owned 50:50 by the two partners.
 
Nissan has sent its termination notice for scrapping the joint venture Nissan Ashok Leyland Technologies Pvt. Ltd.
 
According to a top source, the Japanese group decided to exit the joint venture as Ashok Leyland has not paid royalty totalling over Rs.200 crore.
 
The Japanese company has decided to stop supply of parts and other aspects to the joint venture/Ashok Leyland.
 
Ashok Leyland had turned out four vehicle models from its partnership with Nissan -- Dost, Mitr, Partner and Stile -- while for Nissan it was only Evalia.
 
While Nissan put a halt to Evalia, Ashok Leyland stopped production of Stile later as the vehicle was not doing well in the market. However, Dost has been doing well for Ashok Leyland.
 
According to the source, Nissan wanted to be friendly and settle the issues amicably but was surprised at the legal notice from Ashok Leyland relating to another joint venture.
 
Last year, Nissan Ashok Leyland Technologies went to the Board for Industrial and Financial Reconstruction (BIFR).
 
The company's net worth was eroded and the accumulated losses were around Rs.172.37 crore.
 
Senior Ashok Leyland officials were not available for comments.
 
"We are working with Ashok Leyland for a mutually agreeable solution. We have no further comments on the subject," a Nissan spokesperson told IANS in an email.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex in no-man’s land – Tuesday closing report
Nifty has to go back above 7,100 for the rally to continue
 
We had mentioned in Monday’s closing report that Nifty, Sensex were to rally and that Nifty will have to stay above 7,050 for the rally to continue. The major indices of the Indian equity markets suffered a sharp correction in Tuesday’s trading to close more than 1.50% lower than Monday’s close. 
 
 
Profit-booking, coupled with doubts over the central government's ability to push through key economic legislations during the upcoming parliament session, dragged the Indian equity markets lower on Tuesday. The weak exports figures for January 2016 and the dwindling rupee value also subdued investors' sentiments. The BSE market breadth favoured the bears -- with 1,967 declines and only 569 advances. Initially, both the indices of the Indian equity markets opened on a positive note, in-sync with their Asian peers and Monday's sharp gains. However, profit booking on the back of gains made on last Friday and Monday dragged the markets lower. Moreover, investors' confidence was eroded due to continuing conflict between the ruling NDA (National Democratic Alliance) and the opposition, which is seen as having a bearing on some key economic legislations. The upcoming session of Parliament assumes significance as major economic legislations like bankruptcy code and Goods and Services Tax (GST) Bill will be taken up for approval by the Rajya Sabha. In addition, dwindling exports numbers and a weak rupee dented the equity markets. The Indian rupee opened on a weak note, down seven paise to 68.14 against a US dollar from its previous close of 68.06-07 to a greenback. On the exports front, Monday's late evening macro data release showed a slump of 13.6% in January in dollar terms over the same month a year ago. Chinese shares surged on Tuesday and regained the 2,800-point mark, joining a rebound across global capital markets. The benchmark Shanghai Composite Index gained 3.29% to close at 2,836.57 points while the smaller Shenzhen index surged 3.89% at 10,045.37 points, Xinhua reported. 
 
The Supreme court on Tuesday asked the Reserve Bank of India to furnish a list of the companies which are in default of loans by the banks and financial institutions in access of Rs500 crore or whose loans have been restructured under corporate debts restructuring scheme. While asking the RBI to file an affidavit, the apex court bench headed by Chief Justice G.S. Thakur directed that the list be furnished to it in a sealed cover. The court said this as one of the counsel told the court about commercial confidentiality of the companies. The court order came in the course of the hearing of a public interest litigation pointing to loans given by HUDCO in 2003 to some of the companies with questionable track records. The Bank Nifty closed at 14,166.45, down 1.93% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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