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Private sector employees have an annual pastime, speculate on how much interest their provident fund balances will earn. This year, they know it at the beginning of the year itself. They have been given some good news, ahead of the budget. The Central Board of Trustees (CBT) has recommended to the government, to continue with last year’s interest rate. They will get an interest rate of 8.5% on their provident fund balances.
Continue ReadingThe railway minister has made up her mind to lean on the centre in the next few years to support her growth plans. In 2009-10, the budgetary support has been increased by Rs 5,000 crore over the interim budget figure. But its reliance on the government for funds is expected to increase, putting pressure on the government’s already strained resource position.
Today, the Railway Budget 2009-10 was presented by the railway minister Mamata Banerjee. It was her maiden budget and she left no stone unturned to announce populist schemes, the hallmark of every rail minister. When the times were mostly good, as in the previous government’s tenure, it didn’t pinch but in a slowing economy, it is undoing the strong position the railways made for itself in the past five years.
Hindalco Industries, a producer of aluminium and copper, announced relaxations in covenants of a $982mn loan taken by it to finance the acquisition of Novelis Inc., a Canadian aluminium producer. Hindalco had taken the loan in November 2008.
Continue ReadingIt is not the first time that the government has hiked petrol and diesel prices in the run-up to the budget. On July 1, the government announced a Rs 4/litre increase in petrol prices and Rs 2/litre for diesel. That amounts to a price hike of 10% and 7% respectively.
Continue ReadingWhen Tech Mahindra emerged as the successful bidder for the scam-ridden software company Satyam Computer Services, it seemed like the subsequent open offer would be a success.
But Satyam’s share price rose significantly, in the interim, as investors began to regain some confidence in its future, especially after its provisional results for the third quarter were made public. The company’s profitability was much better than what was feared. While the open offer was at Rs 58 the share closed today, the last day of the offer, at Rs 74.
When Wockhardt decided to sell its animal health business, it expected to get about Rs 150 crore for it. When the business was actually sold, to a French company Vetoquinol, the consideration remained undisclosed. So, if it met its target or fell short of it since exceeding it seems unlikely. The pharmaceutical company is selling non-core businesses in a bid to raise cash and lower its bloated debt.
Vetoquinol and what it gets
Continue ReadingThe South-West monsoon rainfall not only brings relief to people from the summer heat, but is eagerly awaited by farmers. Their crop output depends on it, in a country where irrigation infrastructure is still pitiful, well into the 21st century. For them, the revised monsoon forecast is a dampener. The weather bureau (www.imd.gov.in) has revised its South-West monsoon forecast.
Continue ReadingDilip Shanghvi, chairman and managing director, Sun Pharmaceutical Industries, and Sudhir Valia, director held a conference call held to discuss the FDA raid on its US subsidiary Caraco Pharmaceutical Laboratories. This event has come as big blow for Sun. It has withdrawn its current guidance and will issue a revised one, in due course. The issue is expected to have a significant short term impact on Caraco and some adverse impact on Sun’s short term performance too.
Continue ReadingCaraco issued a statement on Friday, clarifying its financial position after the FDA raid on its facilities. The company said that the inventory that has been seized by the regulator has a value of about $15-$20mn. It does not affect products sold by Caraco under third-party distribution agreements (such as with Sun Pharmaceutical Industries, its Indian parent company) and also products sold under the Caraco brand, but made by other companies.
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