India’s Income Tax department has collected documents related to sales and purchase made by Reebok during the last financial year and few others, including trade receipts processed by the company
New Delhi: The Income Tax department has begun scrutiny of financial documents and transactions of global sportswear manufacturer Reebok after its owner Adidas recently announced commercial irregularities in its India operations, reports PTI.
The I-T department has collected documents related to sales and purchase made by Reebok during the last financial year and few others, including trade receipts processed by the company.
"Certain government/regulatory bodies were seeking clarifications about Reebok India Company in regards to the announcement made on Monday (2nd May). We have shared the required details with them," the Adidas group said in a statement.
The I-T authorities, who visited the corporate office of Reebok in Gurgaon few days back to obtain certain documents, are also scrutinising TDS payments made by the company, sources said.
On 2nd May, German sportswear maker Adidas had said it found some commercial irregularities to the tune of 125 million euro in Reebok India. The details of the irregularities have not yet been disclosed.
Adidas is also in the process of restructuring Reebok India's business which might cost the company 70 million euro.
As a part of the restructuring the group might shut down one-third of its 900 Reebok stores in India.
"The implementation of new commercial initiatives and terms could result in a reduction of our Reebok franchise store base by about one-third, as we focus on maximising our future returns in the market," Adidas Group CEO Herbert Hainer had said earlier.
I-T sources said during the course of investigations, they may summon the officials and accountants of the firm for explaining transactions to them.
While Gold recovered smartly on renewed buying interest, silver also shot up due to frantic speculative demand from industries
MUMBAI: Gold prices recovered smartly at the bullion market on Saturday on renewed buying interest from investors and stockists amid good jewellery off take, reports PTI.
Standard Gold (99.5 purity) rose by Rs100 to conclude the week at Rs29,310 per 10 gm from Friday's closing of Rs 29,210. Pure gold (99.9 purity) also went up by a similar margin to end at Rs29,440 per 10 gm from Rs29,340 a day ago.
Silver also shot up on the back of frantic speculative demand amid higher industrial support.
Silver ready (.999 fineness) surged by Rs400 per kg to close at Rs56,450 as against Rs56,050 yesterday.
In New York, gold futures jumped on disappointing US job data, reigniting possibility of further monetary easing measures amid political uncertainties in euro-zone.
Gold for June delivery added $10.40 to $1,645.20 an ounce on the Comex division of the NYMEX late yesterday.
Silver for July contract gained 42 cents to settle at $30.43 an ounce.
Zuckerberg, who held a total of 533.8 million shares, may garner over $1 billion in cash and stocks worth $17.6 billion, post the Facebook IPO
New York: Facebook Inc's initial public offering (IPO) will vastly increase the wealth of its 27-year-old co-founder Mark Zuckerberg, leaving him with over $1 billion in cash and stocks worth $17.6 billion, reports PTI.
In a filing to the US Securities and Exchange Commission, Facebook said it will sell 337.41 million shares and the IPO price will be between $28 and $35 per share. At this range, the company will be valued at between $77 billion and $96 billion.
Mr Zuckerberg, who held a total of 533.8 million shares, would sell 30.2 million shares garnering over $1 billion in cash at the high end of the range. His remaining 504 million shares will make him worth $17.6 billion if Facebook hits the top of its IPO range.
The pricing indicates Mr Zuckerberg's total holding is worth about $18.7 billion making him richer than Microsoft Corp's Steve Ballmer and Wipro's Azim Premji.
The IPO would further enhance Mr Zuckerberg's financial position. According to Forbes 2012 list, Facebook's co-founder scored 35th rank with a wealth of $17.5 billion.
Mr Ballmer had net worth of $15.7 billion, while Mr Premji's was $15.9 billion, as per Forbes.
Mr Zuckerberg, who started Facebook from Harvard dorm room in 2004, would retain voting control of 58.8% of the company after the IPO and plans to use the proceeds to cover taxes.
In 2011, Mr Zuckerberg took home $1.49 million. He had a base salary of $483,333 in 2011, but it would decline to just $1 next year, on his request.
Besides, the social network's early investors James Breyer of the venture capital firm Accel Partners is also offering 38.2 million shares. Other stockholders who would be offering shares would pocket $1.33 billion.
In addition, Goldman Sachs is unloading 20% of its stake, or 13.2 million shares to take home $462 million.
Facebook, which is expected to go public on 18th May is likely to raise about $11 billion through the IPO at the upper end of the price band. The stock would be listed on Nasdaq under the symbol 'FB'. With 901 million users as of 31 March 2012, Facebook is the most popular social networking site in the world and a magnet for advertisers.
"With Facebook's user base approaching 1 billion it is safe to say the consumer base of the social networking site is close to 1/6th of the global population. This being said, interest levels and demand will drive the price of the stock are very high and with limited supply one can make the assumption that those who are allocated shares of Facebook at the Initial Public Offering price will stand to benefit. Those who are not allocated shares of Facebook should proceed with caution for their investment decisions. On the first day of trading anything can happen, " said Neel Pujara, co-founder and chief executive of DuniyaTrade.com. DuniyaTrade, a US-based brokerage is offering Indian investors to invest in the Facebook IPO.
"Drastic price movements in the stock could cause a market order to execute at a price significantly different from the time an investor enters an buy or sell order. A limit order allows one to set a price at which they wish to purchase or sell a predetermined lot of shares. A market order will execute at the price at which the stock trades the moment the market receives the order," he added.
It's much anticipated IPO is expected to shadow that of other tech giants like Google which had raised $1.9 billion and valued the company at about $23 billion when it went public in 2004. As of 4th May, Google has a market cap of $194.6 billion, while Apple's market cap is $528.5 billion.