Economy
India Cements scrip slips, question mark over rejig process
The India Cements Ltd. scrip slipped on Tuesday but later recovered -- albeit partially -- as uncertainty loomed over the company's demerger of Chennai Super Kings division into a subsidiary after Justice Lodha Committee's order suspending the cricket team for two years.
 
The scrip with a face value of Rs.10 opened at Rs.94.55 at the Bombay Stock Exchange but slid to Rs.88.25 during the morning trade. The scrip later recovered to Rs.91.15.
 
The Supreme Court-appointed Justice Lodha Committee on Tuesday suspended the Chennai Super Kings team for two years from the Indian Premier League (IPL) and also suspended for life its former team official Gurunath Meiyappan from any cricketing activity.
 
Meiyappan is the son-in-law of N. Srinivasan, vice chairman and managing director of India Cements.
 
Meanwhile, uncertainty prevailed on the restructuring process and the impact on India Cements due to the investments made in Chennai Super Kings.
 
Last fiscal, India Cements transferred the IPL franchise rights to Chennai Super Kings Cricket Ltd. (CSKCL), a wholly-owned subsidiary, at its net assets value (NAV) of Rs.7.83 crore.
 
The company board in February 2015 approved the sale of entire shareholding in CSKCL aggregating to 50,000 shares of Rs.10 each to a trust called India Cements Shareholder Trust (ICST).
 
Three of the independent directors of the company were designated trustees of the new entity which was assigned the task of distribution of shares of CSKCL in due course to all non-promoter shareholders.
 
The shares that promoters were entitled to would be allotted to another trust created for the benefit of former cricketers of India Cements.
 
The company had earlier said that the IPL team was instrumental in creating awareness about its cement brands in the market.
 

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CBI searches Teesta Setalvad's Mumbai house
The Central Bureau of Investigation (CBI) on Tuesday conducted searches at three locations in Mumbai, including the residence of social activist Teesta Setalvad.
 
The CBI officials conducted searches at the office of Sabrang Communications and Publishing along with the premises of Setalvad, her husband Javed Anand and associate Gulam Mohammed Peshimam.
 
The agency took the step after it registered a case on July 8 against Setalvad, Anand and Mohammed for criminal conspiracy and illegal acceptance of foreign contributions for their company, Sabrang Communications and Publishing Pvt. Ltd. (SCPPL).
 
The three have been accused of diverting foreign funds to SCPPL by violating the provision of the Foreign Contribution and Regulation Act (FCRA), 2010.
 
The trio has also been booked under various sections of FCRA 2010 and Protection of Civil Rights Act.
 
"The allegations are of criminal conspiracy for illegal acceptance of foreign contribution without registration and prior permission from the ministry of home affairs," an official told IANS.
 
Anand, Setalvad and Mohammed are directors of SCPPL, based in Santa Cruz in Mumbai.

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COMMENTS

J Pinto

2 years ago

Assuming Teesta Setalvad has mis-appropriated part or all of 1.5 crores that is a small price to pay for putting 100 people in jail in the Gujarat pogrom or genocide.

All "sickulars" will feel hopeful of the nation's future now that political parties have seen the consequence of their murderous ways.

AS Teesta pointed out the Mumbai political party responsible for 1992 riots got away with genocide. Thanks to her intervention the likelihood of Mumbai and Gujarat being repeated is greatly reduced ?

J Pinto

2 years ago

Is CBI the normally designated authority for investigating breach of FCRA ?

If not this is shocking and deeply disturbing abuse of the law and the Supreme Court must take suo moto cognizance, particularly given that it has earlier noticed abuse of the law by authorities in Gujarat and afforded protection from arrest.


Volvo to export 'Made in India' buses to Europe
Swedish transport major Volvo will export buses made in India to Europe initially and global markets subsequently, a top company official said on Tuesday.
 
"We will be the first bus company to export to the European market from India, taking advantage of lower manpower costs and neutral duty," Volvo Buses Corporation president Hakan Agnevall told reporters
 
Volvo entered India 15 years ago, ostensibly to foray into high-end truck segment, but got into the luxury buses with first move advantage as domestic rivals Tata Motors and Ashok Leyland have been contended rolling out ordinary buses for cities and semi-luxury coaches for inter-city and inter-state routes.
 
"Besides lower manpower cost and minimal overheads, we will avail customs duty exemptions on import of engines, components and accessories used in making buses for exports at our factory near here," said Volvo Buses vice president Akash Passey.
 
Volvo's Indian subsidiary has invested an additional Rs.400 crore in doubling its installed capacity at its Hoskete plant, 40 km from Bengaluru, to 1,500 units per annum. It employs about 1,000 people.
 
"As the country's passenger transport market has been down over the last couple of years due to various factors, including recession, we could not fully utilise the production capacity as the demand or order was for 600-800 buses per annum," said Passey.
 
Volvo India has been exporting luxury air-conditioned buses to South Asian countries like Bangaldesh, Maldives and Sri Lanka since 2003 and to South Africa since 2011, for multiple services, including inter-city, inter-state, long distance and within cities.
 
Besides here, the company has a manufacturing base in Shanghai, Bangkok and Taiwan.
 
"It's a milestone for us to export buses from India to developed markets in Europe though we are a European company and has a major presence there with a couple of manufacturing plants in the continent," said Agnevall.
 
The type of luxury buses to be exported will be Euro-6 complaint for mass rapid transportation in European cities, where demand is about 5,000 units per annum.
 
"We will use India as export hub overtime for developed markets like Europe, leveraging our manufacturing presence, with a strong vendor base," Agnevall added.
 
By focusing on exports, the Indian subsidiary will also be able to face the cyclical domestic market demands, which have been linear over the years due to economic slowdown and lower orders from state-run corporations and private operators.

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