Ranbaxy Q1 net loss narrows to Rs186 crore

During the June quarter, Ranbaxy posted a net loss of Rs186 crore compared with Rs524.24 crore recorded in same quarter last year


Pharmaceutical company Ranbaxy Laboratories Ltd on Tuesday reported a narrower loss for the June quarter despite fall in sales.


For the quarter to end-June, Ranbaxy said its consolidated net loss narrowed to Rs185.92 crore from a net loss of Rs524.24 crore while its total revenues, including sales fell 8% to Rs2,372.24 crore from Rs2,583.94 crore, same period last year.


Ranbaxy said, its branded and OTC category drugs accounted for 58% of total sales during the quarter at Rs1,370 crore. Generics and others category recorded Rs1,000 crore of sales during the June quarter, it added.


In the US, the company posted sales of Rs700 crore for the quarter primarily driven by Absorica with a market share of 20%, it added.


The India business of the company recorded 12% growth as against the Indian Pharma Market (IPM) growth of 10%. The company expects to continue the momentum in the months ahead, Ranabaxy said.


On the regulatory issue faced by the company over manufacturing norms violations at its Toansa plant, Ranbaxy said on 5 June 2014, EU authorities reinstated the EU GMP certificate for the Toansa facility after a joint inspection by multiple European Agencies, including UK, Ireland, Germany, Switzerland and TGA Australia which was completed during March 2014 with no critical observations.


In an exemplary judgement, Bombay HC exposes Income Tax department’s tax terror

The Court has imposed a fine of Rs1 lakh for filing frivolous appeal asking the department to recover it from the officials involved and also take disciplinary action against them


Dismissing an appeal filed by Income Tax (I-T) department, the Bombay High Court levied a penalty of Rs1 lakh on the department and directed it to recover this from the official responsible for filing such a frivolous appeal.

In an exemplary order passed on 10 July 2014, the Bench of Justices BP Colabawalla and SC Dharmadhikari, said, "The Revenue officers must realize that just like other powers a executive power conferred in them is in the nature of a Trust. They hold office as trustees of the public at large. They deal with public revenue and public money and that cannot be wasted in such frivolous litigation. We, therefore, dismiss these appeals with costs quantified at Rs1 lakh­ each".

The case related with an appeal filed by Commissioner of I-T (CIT-2) against Larsen & Toubro Ltd (L&T). The I-T department had levied a penalty on L&T, which was set aside by the Tribunal. This was challenged by the I-T department in the High Court.

The Bench said, "We are surprised if not shocked that such appeals are being brought before us and precious judicial time is being wasted that too by the Revenue. We have found that merely expressing displeasure orally is not serving any purpose. The least and minimum that is expected from the Revenue officers is to accept and abide by the Tribunal's findings in such matters and when they are based on settled principles of law."

"We do not understand why higher officials do not have the courage to take bold decisions particularly of not pursuing such matters up to this court or higher. Because the Assessee is a leading Public Limited Company should not act as a deterrent for them to take an informed, rational decision and subserving larger Public Interest. The biggest litigant, namely, the State ought to be aware of the Pendency of Cases in High Courts of Bombay, Madras, Calcutta and Allahabad for example. If their policies particularly on litigations are not aimed at reducing frivolous and speculative litigations, then, the least that can be said is that the State has failed to act for public good and in Public Interest," the High Court added.

The HC said, “It would be open for the superior/ competent authority to recover the costs personally from the officer responsible and equally take disciplinary action against him if the power to decide about filing such appeals is abused or the decision making authority is utilized to harass innocent Assessees. Every case must be dealt with on its merit and no routine exercise ought to be undertaken merely because the Revenue impact is higher or the status or financial position of the Assessee is influential and strong. That cannot be the only yardstick or criteria.”

The Income Tax department, in trying to meet its steep “collection” targets have been terrorising tax payers indiscriminately.

An ‘Office Memorandum’ dated 20 March 2014 issued by the under secretary to the government of India, ministry of finance, following a video conference held on the same day. The memorandum appears to be addressed to the officers of the income-tax department and highlights the following:

“There is a shortfall of more than Rs50,000 crore in net revenue collection for the current year that will end on 31st March, 2014.

An analysis with reference to collections in respect of each CCIT (CCA), the growth trend till date and the growth trend with reference to minor heads suggested that the target could be reached provided there is no slacking of efforts. In order to achieve the Budgetary Targets, all officers across the country should show commitment to work 24 X 7 hours for remaining 11 days of the financial year.

Assessing officers/Addl. CIT/CIT/CCIT involved in assessment work and collection of taxes shall not leave headquarter up to 31.03.2014. In case of any emergent requirement, permission for leaving Headquarter by any officer mentioned above is to be taken from respective Zonal Members.”

Another example of the kind of pressure that is exerted on the tax officers which forces them to adopt high-handed tactics is a letter from by the chairman of the Central Board of Direct Taxes (CBDT) to the highest-ranking officers of the tax department on 7 February 2012.

In that letter, the then chairman, CBDT, Laxman Dass, told senior officials that their career prospects would depend on their success in meeting targets for tax collection, emphasising the government’s desperation to raise revenues to plug the rising fiscal deficit. He sent out a clear message to the top 100 officials that tax revenue targets are ‘non-negotiable’.

In one of the recent tax terror cases, a transfer-pricing related issue involving Bharti Airtel, the income-tax officer disallowed a sum of Rs57,39,60,05,089 (to make it simple for you—it means Rs5,739 crore!). This was done, despite the fact that it was obvious that there was no need for such a disallowance. To get into the details of the case would entail a special issue of Moneylife.

Suffice it to say that the disallowance was, prima facie, absurd and unwarranted. The officer who passed the order would definitely be aware of this. His boss would also be aware as well, since such a large order could not have been issued without the knowledge of the higher authorities. While hearing the appeal, the members of ITAT have come out heavily against the officer who passed the order.

The tax officers of the country have become so brazen and insensitive because of the policies of the finance ministry. If the chairman of the CBDT can tell his officers that their appraisal depends on how much tax they collect, one need not be a nuclear scientist to understand why taxpayers find themselves in the condition that they are today.

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Tax torture



Dipakkumar J Shah

2 years ago

In one of my client's case A C I T passed the order for a demand of Rs 75,000 Instead of Refund of Rs 75000 !!!/\. My client had to file Special Civil Application directly to Hon. High Court of Gujarat. This action of A C I T was completely against Income Tax Act. A notice has to be given to Assesses before making any changes in the amount of Income Tax Refund.!! Ignoring the same passed the order. For more than 3 years the assessment order was not served to the assessee !!! All doors for filing an application for rectification , Appeal to C I T , Revision Petition to C I T for the client !!!! All doors for the aseessee were closed by such manipulation!!!! The return was filed by one chartered accountant taking Fee Rs 750 and Rs 10000 for passing the Order!! When the same C A was approached he refuted his liability to get the order !! The assessee was also N R I Chartered Accountant in Manchester. He gave the example of mine to many C A in England , Manchester , that there is one person to fight with Income Tax Department with my intelligence!!!
He was my close relative.

Ramesh B Mhadlekar

2 years ago

Colaba-based architect Sudhir Diwan who once undertook renovation of the Reserve Bank of India (RBI), has slapped a legal notice on it. Diwan alleged that the bank used and displayed a mural designed by him in the form of a painting without his permission. Alleging an offence under the Copyright Act, 1958, Diwan has now sought Rs 2.5 lakh in compensation. The Reserve Bank has spent Rs.15,97,507 till October 2013 as per an RTI information Jan.2014 and is continuing to pay further lawyer fees on the ongoing case in High court. I hope based on the above said judgement of the Hon. Bombay High Court their officials who have wasted the said amount will be recovered from them and the ex-chequer would not be put to loss. For a matter of 2.5 lacs Public money is put to waste.

Nagesh Kini

2 years ago

The Parliamentary Standing Committee on Taxation needs to commission a study on the extent of taxation-related appeals pending in the higher judiciary and how many need to be withdrawn after reviewal to ensure release of the amounts as well as declog the courts.

Mrinal Kanti Ganguly

2 years ago

Country Club, Begumpet

It was on 8th September’2012; I received a phone call, informing me that, I have won a 1st prize in some lucky draw for some shopping I made in a mall and inviting me to Country club, Begumpet, Hyderabad to receive it. Although I was not very keen initially, but after some pleading by the caller, I agreed to attend, with a promise that it will take only 30 minutes. Once there, they started their presentation. They offered Membership card for my Entire family including to-be-spouses of my 2 sons(Total 6 cards). It was cleared to the Sales person that my children's age were 27 and 28. When we asked them some time to think about it, they told us that, it was the last day at a discounted price of only Rs.1,30,000 and told that the membership is transferable at a premium price anytime.
But they delivered only 2 cards. 1 for me and 1 for my spouse. And along with a letter that Children only up to the age of 25 would only be provided cards.
That time I was looking for a suitable venue for my son’s marriage, which was to be held in November’2012. They offered us 11 rooms in Country Cool almost for free(only taxes to be paid), function hall for free and so on.
Since I made my transaction, Sales person and his supervisor's attitude seemed to change completely. They did not answer calls anymore. I had to visit them multiple times and enquire about the status of my Room bookings at Cool Club, Begumpet. After toying around with me for a week or so, they told me that it is not possible to get 9-10 rooms in Begumpet and offered me 9-10 rooms at Amrutha Castle, Hyderabad. I agreed to that and asked them to make the booking for me. They kept me waiting for days and then told me, that too is not possible. They could only give me 1 or 2 rooms, that too not continuously for 3-4 days.
As we reside near Begumpet, we thought Country club would be the most convenient place for us and fallen in their trap. That’s not all, now we are called regularly demanding AMC and also for buying plots from them. But when we offer to sale our membership, either they don’t reply or tell us to approach some Time Share company. I agree, it was my mistake, but is there no agency to stop this modus operandi to fool innocent people like us and make easy money for themselves. I demand that the Country club refund my entire money with interest as none of the services has been utilized.


Jayashree Ganguly, A-301, Villa Heights,
Brahmanwadi, Begumpet, Hyderabad
Cell no: 9160179151 emai id : [email protected]


2 years ago

Alas! One swallow does not a Summer make:

Arun Mehta

2 years ago

Not withstanding the fine,The teflon coated,hide skinned,tax men will still continue the old ways.It's asking too much to expect them to change.


Nagesh Kini

In Reply to Arun Mehta 2 years ago

On the contrary Arun, according to a news report politeness will be their new mantra. They are directed to be 'more polite and courteous in tone and tenor - use more of "gentle reminder", "please" and "warm regards" to be "more customer by addressing by name with proper salutation instead of the routine "Dear Sir/madam".

manhar kothari

2 years ago

It is good judgement and incometax officers who are responsible for raising such demand must be punished.


2 years ago



2 years ago

congrates to bombay high cout to pronounce such a landmark judgement.


Nagesh Kini

2 years ago

This is only the tip of the iceberg. The CBDT now seems to have woken up to come out with certain basic'norms' to stem hyped demands brazenly disallowing left right and centre or adding back making a mockery of assessment. It has been noticed that all of these are invariably set aside with strong strictures from courts.The asssesses win in almost all cases and the percentage of departmental appeals being set aside is extremely high all leading to the awakening.

Flipkart gets $1 billion fresh funding, taking its value to about $7 billion

It is estimated that the online retailer has, so far, raised over $1.7 billion from investors, including the current transaction


India's largest e-Commerce firm Flipkart on Tuesday said it has raised $1 billion (over Rs6,000 crore) in fresh funding from a group of investors, the largest so far in the fiercely competitive online shopping segment in the country.


This round of funding has now valued Flipkart at around $7 billion. Flipkart's valuation was estimated between $2.5 billion to $3 billion in May, when it had its previous funding round. In May, Flipkart had raised $210 million. It is estimated that the firm has, so far, raised over $1.7 billion from investors, including the current transaction.


"The funds will be used to make long-term strategic investments in India, especially in mobile technology," Flipkart co-founder and CEO Sachin Bansal told reporters.


Flipkart was rumoured to be considering an initial public offering (IPO) for raising capital but that has now been put to rest with this successful round of funding. "By 2020, India will have more than half a billion mobile Internet users. Our intense focus on mobile and technology puts us in a unique position to take advantage of this massive opportunity," Bansal added.


"IPO is not in consideration at all, we are not thinking about it. We have not settled on a business model that we can take public," Bansal said.


The Bangalore-based firm, founded by Sachin Bansal and Binny Bansal, counts Accel Partners, Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital among its other investors.


For a business with relatively lower brick and mortar investments, it has proven to be hugely capital intensive and Amazon itself has been a perpetually capital thirsty company. With Amazon's entry in India last year, the competition in the online retail market became exceedingly fierce. Consolidation seems to be on the cards with Flipkart's recent buyout of Myntra, another online fashion retailer. The home-grown e-retailer had acquired online fashion retailer Myntra in May in what is estimated to be a Rs2,000-crore deal. It had also announced an investment of $100 million (around Rs600 crore) in its fashion business over the next 12-18 months.




2 years ago

The growth in Indian online retail is phenomenal.Foreign PE funds are picking up stake in these Companies.The Chinese smartphone by Xiaomi was sold out in a few hours.However the challenge is many Indian shoppers check for products online and pick them from brick and mortar stores.

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