Oil major BP handed out a major IT outsourcing contract to five global IT companies. The deal has been awaited for long and comes at a time when deal flow has slowed down for the software sector. While the deal value was not disclosed by the companies who got the award, this story by Mint has quoted a BP spokesperson attributing the deal value at $1.5bn. BP will save about $500mn by reducing its number of vendors to 5, says the report.
Economy+Policy
New Income Tax Code: lower rates, fewer exemptions
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Finance Minister Pranab Mukherjee stuck to his promise made in his Budget speech and has put the draft Direct Tax Code in the public domain. The government is asking for comments, before it is introduced in parliament. Over the years, the Income Tax Act, 1961, has been supplemented by several amendments, interpretations and rules. Continue Reading →
Economy+Policy
India’s factory output grows by 7.3% in June 2009
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Industrial output for June 2009 is a bright spot amidst the gloom, caused by a near certain drought and a swine flu outbreak in the country. The index of industrial production (IIP) for June 2009 has increased by 7.8% over the same period last year. There was a partial base effect, as mining grew by 15% compared to a 0.1% growth in June 2008 and electricity grew by 8% compared to 2.6%.
Economy+Policy
Indian government to issue C-bills
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Short term borrowings are a part of any company’s life. These are needed to tide over temporary cash shortages or even to meet normal working capital needs. Since the needs are temporary, companies do not mind paying a slightly higher rate of interest. But when governments start dipping into the till to meet short term requirements, the consequences can be interesting, if not disruptive.
Economy+Policy
Sebi bans differential exit loads
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Sebi has issued a new circular to all mutual funds, barely a week after its rule banning entry loads came into effect. The capital market regulator has told mutual funds to charge exit loads uniformly to all investors. The move plugs any possibility of mutual funds compensating for the lack of entry loads by recovering expenses from retail investors, when they exit a scheme.
Economy+Policy
Cross border mergers, coming soon in India
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Companies
Bharti Airtel and MTN extend talks, structure to change?
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The celebrations will have to wait longer for what has been touted as a major south-south corporate alliance. Bharti Airtel and
Companies
Airlines on strike: no flights on August 18
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The opponents of free markets must be cheering. “We told you so.” Don’t hand over the skies to private players. Don’t destroy the monopoly that Indian Airlines enjoyed in domestic markets. So what if their fares were high, so what if their service oscillated between the pathetic to the barely tolerable and you were at their mercy, if your flight got cancelled.
Companies
Wockhardt sells Farex and Protinex to Abbott for $130mn
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Debt-laden pharmaceutical company Wockhardt continued its asset selling spree, handing over its nutritional foods business to Abbott. The US pharmaceutical company will pay $130mn or Rs 627 crore, for the business which will be distributed between Wockhardt, Carol Info Services, some subsidiaries of Wockhardt and associate companies. Continue Reading →
Companies
Trent’s net profit hurt by other income
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Trent’s sales in the June 2009 quarter fell by 8% over the previous corresponding period to Rs 119 crore (standalone results). The apparel retailer, promoted by the Tata group, had hived off its hypermarket business to a subsidiary effective August 1, 2008. The loss of revenue in its standalone results hit overall growth. The company runs stores under the Westside, Sisley and Fashion Yatra and also owns the Star India Bazaar stores, which are now run by a subsidiary.
Highlights