Powerhouse Fitness IPO: Valuation too pricey, says expert

Powerhouse Fitness IPO scan by VS Fernando

Powerhouse Fitness: Promoters' omissions & commissions at Santowin Corporation & SVC Resources, hordes of litigations and issue manager's link to securities scam-tainted group put the IPO on weak footing.

OFFER AT A GLANCE
Issuer Name	Powerhouse Fitness and Realty Ltd
Offer Amount	Rs 7.2 cr
Offer Quantity	24 lakh shares of Rs 10 each
Offer on Total Equity	34.80%
Post-issue Promo stake	65.20%
Post-IPO Capital	Rs 6.90 cr
Offer Price	Rs 30
Application Quantity	4000 & Multiples of 4,000
Offer Opens	29-Sep-14
Offer Closes	09-Oct-14
Listing	SME Platform of BSE
Rating	Nil
Lead Manager	First Overseas Capital
Underwriters	First Overseas (15%) & Transparent Shares (85%)
Market Maker	Transparent Shares
Registrar	Bigshare Services

 

The Offer
The present offer from Powerhouse Fitness and Realty Ltd (PFRL) is the seventy-fourth IPO to hit the BSE's SME Platform. The IPO is a fresh issue of 24 lakh shares of Rs 10 each at a price of Rs 30 a piece. Investors need to apply minimum 4000 equity shares. For managing its IPO, PFRL has hired a little known investment banker from Mumbai, First Overseas Capital. Incidentally, PFRL's is the first IPO handled by First Overseas!

Whereas the issue manager has underwritten 15% (Rs 1.08 cr) of the issue, the designated market maker, Transparent Shares & Securities who is subscribing 1.28 lakh shares (Rs 38.40 lakh) in the public issue, has committed to underwrite 85% (Rs 6.12 cr) of the issue.

Issue Object

The company proposes to spend the issue proceeds of Rs 7.20 cr on the following: Setting up of 6 additional Gyms in Western and Eastern suburbs of Mumbai Rs 6.37 cr, General Corporate Purposes Rs 0.32 cr and public issue expenses Rs 0.50 cr. However, the project and funding plan has not been appraised by any external agency. The deployment of funds is entirely left to the discretion of the management.

Parentage

The promoter-family has had the two public companies viz. Santowin Corporation and SVC Resources whose track record is hardly worth speaking about. PFRL's offer document presents Gupta brothers Akshat (26), Managing Director, and   Ankush (30), Whole-time Director, along with their mother, Sushma Gupta (53), as promoters of the company. Interestingly, Sushma Gupta has resigned from the board of the company in August 2014.

In the pre-IPO capital of Rs 4.5 cr, Gupta brothers hold 27.76% each, their mother and father (Ashok Gupta HUF) hold 17.78% and 8.89% respectively. The balance is equally (4.47% each) held by the spouses of the Gupta brothers. In other words, unlike many other BSE SMEs, the entire pre-issue capital is subscribed by the promoter-family. 

The promoters claim to operate a fitness chain in Mumbai and also have the presence in Surat and Jaipur through their franchise. The gyms are reportedly operated under the brand "Powerhouse Gyms" which is owned by Powerhouse Gyms International, headquartered in Detroit, USA. The Gyms are said to be state of the art facilities with services including gyms, steam, aerobics and diet counseling amongst others.

According to the offer document, the first gym was established in May 1999, as "Q's Fitness Studio" a proprietary firm with Ashok Gupta HUF as its sole proprietor at Santacruz West, Mumbai. After the success of the Santacruz centre another centre was set up at Vile Parle, Mumbai in October 2004. "Q's Fitness Studio" claims to have signed a Master Licensing Agreement dated in 2005 with Powerhouse Licensing LLC, which provides exclusive right to set up and operate Powerhouse Gyms and to use and license of the Powerhouse Gyms and the associated trademarks in the gyms in India, Nepal, Bangladesh and Sri Lanka. The first Powerhouse fitness centre in India was reportedly set up in November 2005 at Juhu (Mumbai) subsequent to which Guptas' centres at Santacruz and Vile Parle were converted to Powerhouse.

In February 2013 PFRL was incorporated to consolidate the business and bring all the gyms into a single entity. Currently, PFRL is said to have 12 Powerhouse Gyms in Mumbai (Juhu, Vile Parle, Chembur, Ghatkopar, Mulund, Chowpatty, Prabhadevi, Andheri, Four Bunglows, Malad, Mumbai Central and Colaba. PFRL claims to operate 13 fitness centres in Mumbai and three franchisees in Santacruz (Mumbai), Surat and Jaipur. Further, it has also entered into a leave and license agreement for the opening of Gym in Thakur Complex, Kandivali (East). As on date the company claims to have approximately 9000 members in all their gyms including franchisees.

Financial Performance

Operationally, PFRL has completed just one year.  At the end of March 2014 the company had deployed Rs 4.08 cr equity and Rs 1.69 cr loan funds. Its net block stood at Rs 3.53 cr. For the thirteen and a half month period ended March 2014, it posted Rs 3.89 cr gross income on which operating profit amounted to Rs 49 lakh. OPM was none too impressive at 11%. The bottom line at Rs 8.29 lakh was too small to service the pre-issue capital of Rs 4.5 cr. What's more, the company's operations resulted in a negative cash flow of Rs 1.65 cr. Though trade receivables were nil at the end of the period, about Rs 2.66 cr was locked in `short term loans and advances' and `other current assets'.

Valuation

The promoter family has subscribed the entire pre-IPO capital at par value. The company does not have any great earned surplus to warrant a premium. Yet, it is asking for a share premium of Rs 4.80 cr!  Post-IPO, PFRL's capital would increase to Rs 6.9 cr. Obviously the company's present profitability is too insignificant to service the enlarged equity. An illustrious peer in the fitness industry, Talwalkars, despite having a net block of over Rs 400 cr, is discounted modestly 15 times its earnings.  Compared to Talwalkars' P/E, PFRL's valuation looks absurd.

HOW POWERHOUSE COMPARES WITH PEER
COMPANY NAME	Talwalkars	Powerhouse Fitness
Rs.Cr	MAR-14	PRE-IPO	POST-IPO
MARKET CAP	504.11	12.24	20.7
EQUITY	26.18	4.08	6.9
RESERVES	204.87	0.08	4.88
NET BLOCK	408.28	3.53	3.53
NET REVENUE	180.05	3.84	3.84
OPERATING PROFIT	80.63	0.49	0.49
NET PROFIT	33.4	0.08	0.08
PRICE-EARNINGS	15.1	153	258.8
PRICE/BOOK VALUE	2.2	2.9	1.8
PRICE/FACE VALUE	19.3	3	3
PRICE/REVENUE	2.8	3.2	5.4
PRICE/NETBLOCK	1.2	3.5	5.9
OPERATING MARGIN (%)	44.8	11.2	11.2
YIELD	0.8	0	0
SHARE PRICE (Rs)	192.55	30	30

 

Perception

Besides bizarre valuation, PFRL also carries the `baggage' of perception-issues. There was a complaint lodged with SEBI alleging that Ashok Gupta and his connected-entities had acquired the control of SVC Resources during June-September 2006 without complying with the open offer requirements of SEBI Regulations. It was further alleged that Gupta's family members acquired shares of Santowin Corporation and took over management control without complying with the open offer requirements of SEBI Regulations.  It was also alleged that pledged shares of SVC Resources and Santowin Corporation were done without complying with disclosure requirements.

SVC Resources and  its managing director have filed petition  before Company Law Board  against  Ashok  Gupta,  Akshat Gupta, Sushma Gupta and others seeking  that allotment of 1,08,44,426 equity shares  to Guptas and  allotment of 2,97,00,000 shares to Subhtex India  in May 2013 should be cancelled.  SVC Resources also received a letter alleging that open offer was not given for change of management, the directors had defaulted u/s. 274 (1)(g), correct annual report not submitted to BSE and to ROC amongst others. ROC has directed the Company to submit the point wise reply and documentary evidence wherever is necessary.

There was a complaint under Section 138 of the Negotiable Instruments Act by Prudent Fintrade against Akshat Gupta for cheque bouncing which was subsequently settled by the Court. SEBI notice dated June 02, 2014 alleged that Santowin Corporation provided wrong and misleading information to SEBI regarding the disclosure of acquisition of shares of Santowin by Akshat Gupta.

The name of one of PFRL's promoters, Sushma Gupta, appears on the website of www.watchoutinvestors.com in relation to loan default by Subhakti Textiles in relation to loan taken from Central Bank of India. Sushma Gupta was one of the guarantors for the said loan. No wonder, though having been on the board of PFRL since incorporation as promoter, Sushma Gupta resigned from the board in August 2014.

Raj Dadarkar & Associates have filed suit against Powerhouse Fitness for eviction, injunction and recovery of arrears of compensation (Rent) of Rs 1,18,98,000 in terms of Leave and Licence Agreement and Business Service Agreement. The Court passed an interim order dated November 19, 2013, partially allowing the application, directing Powerhouse to deposit the arrears of compensation @ Rs. 1,50,000 p.m. from September 2011 to November 2013 and further deposit Rs. 1,50,000 p.m. till the decision of suit.

Issue Manager's Track

The controversial promoters of PFRL have gone to First Overseas Capital (FOC) whose parentage itself was tainted in the 1990s securities scam. FOC is controlled by the Dalal family of CIFCO fame in yester years. Post-penalization of the security scam, this is the first time that the CIFCO group is handling a public issue. Indeed, FOC was associated with Fineotex Chemicals when it planned its IPO in 2008. But, the company subsequently dropped FOC and hired Indbank Merchant Banking for managing its public issue in February 2011. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

23.07 | 0 komentar | Read More

Modi orders officials to clean loos on Gandhi's birthday

Prime Minister Narendra Modi has ordered government officers to work on Mahatma Gandhi's birthday, a national holiday, to clean ministries - including toilets - in a nationwide cleanliness drive.

Modi plans to honour the independence hero by launching on Thursday the Clean India campaign, which aims to solve the country's sanitation and rubbish problems within five years to mark the 150th anniversary of Gandhi's October 2 birthday.

Many cities, including New Delhi and Mumbai, are overflowing with garbage, a result of rapid economic growth, overcrowding and poor urban planning, as well as civic behaviour that rarely condemns littering.

India's shortage of toilets costs the country more than $50 billion a year, mostly through premature deaths and hygiene-related diseases, according a study by the World Bank. India suffers a greater cost than other Asian countries from the inadequate collection of human excreta, the study found.Several officials in government departments told Reuters they had been called into work on Thursday to help clean up.

"We are all buying brooms, we are going to clean up the bathrooms here," one defense ministry official said. "This is our work now."

The order to sweep and clean latrines echoes Gandhi's own insistence that his disciples carry out tasks that in India are traditionally associated with people from lower castes.

During India's campaign for freedom from colonial British rule, Gandhi spoke about the need to improve cleanliness, saying "sanitation was more important than independence."

Since taking office, Modi has repeatedly invoked Gandhi and lamented the poor state of sanitation and public cleanliness in India. He has also vowed to clean the heavily polluted Ganges river in time for Gandhi's 150th anniversary.

The drive to clean up notoriously shabby and spit-stained government offices began weeks ago and has had a noticeable impact with broken office equipment, dangling wires and tonnes of dusty files thrown away since Modi took office in May.

The latest push was met with resistance from officials who are under pressure to work longer hours and whose attendance is now closely monitored. Some complained they have been forced to cancel plans to see family on a public holiday.

"Most of the officials are enthused by the new government's focus on growth and improving work culture, but there should be a limit to the publicity stunts," an official at one ministry said. "We have been working for nearly 10 hours a day and we are now even asked to come on a national holiday."

Modi is the first Indian prime minister to make cleanliness and fixing the country's chronic toilet shortage one of his top priorities, with a target to make the nation's major cities free of rubbish by 2019.

He says a cleaner India will help promote economic growth, reduce healthcare costs and provide employment.In a speech last week, Modi asked every Indian to devote about 100 hours a year, or two hours a week, to cleaning public places of litter. Five years ago, India's then environment minister, Jairam Ramesh, shocked many Indians when he said its cities were the world's dirtiest and that "if there is a Nobel Prize for dirt and filth, India will win it, no doubt."

23.07 | 0 komentar | Read More

More hurdles for Sistema, minority investors move HC

After having met with disappointment with FIPB rejecting their proposal, the latest hurdle could come by way of a pending suit before the Rajasthan High Court.

Looking to pump in Rs 10,000 crore into its Indian subsidiary, Sistema is facing multiple challenges.

After having met with disappointment with FIPB rejecting their proposal, the latest hurdle could come by way of a pending suit before the Rajasthan High Court.

Minority investors have moved Rajasthan HC seeking an exit route for their investment, which they claim has been rightfully denied. While hearing the plea, the HC in 2008 issued orders to Sistema to provide an exit option, and in the latest setback has issued orders for maintaining status quo with respect to shareholders' interest.

This interim order came after minority investors alleged that Sistema while refusing to comply with the HC orders for providing an exit route, was hurting the minority investors by infusing capital and diluting the equity holding of the minority shareholders.

FIPB sources had confirmed that among other issues, the Rajasthan HC interim order also compelled them to reject the proposal. The HC will take up the matter for further hearing on October 10.

23.07 | 0 komentar | Read More

PM pitches India story, lists priority areas to US CEOs

Hosting a breakfast for 11 CEOs, including Indian-origin PepsiCo CEO Indra Nooyi, Google Chairman Eric Schmidt and Citigroup chief Michael Corbat, Modi said India is open-minded and want the change, which is "not one-sided".

Prime Minister Narendra Modi today said he wants to convert the Supreme Court judgment on coal allocation into an "opportunity to move forward and clean up the past", as he wooed CEOs of large American companies to invest in India in key sectors including infrastructure.

Hosting a breakfast for 11 CEOs, including Indian-origin PepsiCo CEO Indra Nooyi, Google Chairman Eric Schmidt and Citigroup chief Michael Corbat, Modi said India is open-minded and want the change, which is "not one-sided".

Listening to concerns raised by the business leaders, Modi assured them that his government will address their issues and try to make the environment in India more business- friendly.

Describing the meeting as "excellent and very good", all business leaders, including Nooyi and Corbat, said that the Prime Minister heard their concerns and listed out the priority areas of his government to take forward the India story to higher levels. "(We) want to convert the Supreme Court judgment on coal allocation into an opportunity to move forward and clean up the past," Modi told the CEOs.

The Supreme Court last week quashed allocation of 214 out of 218 coal blocks alloted to various companies since 1993 terming it as "fatally flawed" and allowed the Government to take over operation of 42 such blocks which are functional. Modi's observation comes in the backdrop of concerns that the judgment would have an adverse impact on corporate sentiments and overall business climate.

"India is open-minded. We want change. Change that is not 1 sided. Am discussing with citizens, industrialists & investors," the spokesman of the Ministry of External Affairs Syed Akbaruddin tweeted, quoting Modi as said at the meeting. The Prime Minister also told the business leaders that "infrastructure development is a big opportunity; it creates jobs and enhances quality of life of our citizens."

23.07 | 0 komentar | Read More

Srei Infrastructure launches Rs 250-cr NCD issue

The bonds with tenure of two years will offer an annual coupon of 10.75 percent to institutional and non-institutional investors, while retail investors will get 11.25 percent

Srei Infrastructure Finance  today launched a Rs 250-crore domestic bond issue as part of its Rs 1,500-crore issuance later.

The bonds with tenure of two years will offer an annual coupon of 10.75 percent to institutional and non-institutional investors, while retail investors will get 11.25 percent, the infra financier said here.

The bonds maturing in three years will offer an annual coupon of 11 per cent to institutional and non-institutional investors and 11.50 per cent to retail investors. The 5-year bonds will yield 11.25 percent to institutional and non-institutional investors and 11.75 per cent to retail ones.

The company is offering a monthly coupon payment options for bonds maturing in 3 and 5 years. It said 75 percent of the net proceeds will be used for lending or repayment of loan and the balance will be utilized for general corporate purposes. The bonds, which opened for subscription today, will close on October 31.

The bonds, rated 'AA-' by Care and 'AA' by Brickwork, are lead managed by ICICI Securities, AK Capital, Edelweiss Financial Services, SPA Capital Advisors and Srei Capital Markets.

SREI Infra stock price

On September 29, 2014, SREI Infrastructure Finance closed at Rs 48.10, up Rs 2.50, or 5.48 percent. The 52-week high of the share was Rs 57.55 and the 52-week low was Rs 17.60.

The company's trailing 12-month (TTM) EPS was at Rs 1.50 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 32.07. The latest book value of the company is Rs 53.22 per share. At current value, the price-to-book value of the company is 0.90.

23.07 | 0 komentar | Read More

Can create enough cash to handle debt: Strides Arcolab

Strides Arcolab  board has given the go-ahead to merge Shasun Pharma with itself in an all-stock deal. Shareholders will get 5 shares of strides for every 16 shares of Shasun Pharma. Strides stock rallied 9 percent in trade but Shasun Pharma stock ended with losses. 

Shasun Pharma currently has debt of around Rs 600 crore, which is unlikely to exceed, says MD and CEO Abhaya Kumar. According to Arun Kumar, founder and group CEO, Strides Arcolab the company has capacity to create enough cash to handle the debt. Merger with Shasun will give company integration which is crucial, Arun adds.

Strides Arcolab is expected to have major focus on formulations going ahead. The company will also continue focusing on its CRAMS business.

Below is verbatim transcript of the discussion:

Q: What is the rationale behind the deal?

Arun Kumar: The strategic rationale for this transaction is fairly simple. This gives us integration which is now becoming very critical. We are aware we never have the Active Pharmaceutical Ingredients (API) capabilities in Strides.

We were pure play dosage form player. This merger would potentially give us the integration which is crucial as we build portfolios and create capabilities around our institutional business as well.

It also gives us the pipeline that we desperately need post the Agila transaction. This is because Shasun has a very strong pipeline of products already filed for the US. This will give us the scale and scope that we need after the divestment of the Agila business.

So it is important from that perspective. Scale and scope is critical in our industry and this first merger between two Indian pharmaceutical companies would be critical and a trendsetter for things to happen in the industry as we believe or rather get ready for the changes that the industry is being asked to make from a regulatory frame work.

Q: You spoke about a pipeline for Shasun Pharma in the US. Can you give us a sense in terms of post the consolidation of the business what will be the main verticals that the company will operate in and will this now mark Strides' entry into API CRAMS?

Arun Kumar: In the dosage form except for injectibles where we have a non-compete we have all other dosage forms to operate on. It gives us over 160 products in pipeline with 100 plus filings in the next three years, so that is very important.

We have both revenue synergies and cost synergies. We will continue to focus on the CRAMS business and Shasun is on the tipping point of that business. They have some very exciting products for partners in Phase III.

We believe those products will be very important for us to pursue as our investment. So at this time all the combined businesses are critical and in the next two-three years we will get to a very significant size both in terms of top line, EBITDA and cash flow generation.

Q: For Shasun Pharma if you look at the Q1 numbers your finance costs were still quite high. In fact they jumped 52 percent and were above Rs 11 crore in the quarter gone by. What does your debt on book stands at right now? How your UK subsidiary is also doing?

Abhaya Kumar: The debt as on today stands at around Rs 600 crore and our pipeline of products and investments that we are making in the research and expansions have been a major factor but beyond this basically all our investments will start sweating and you will see huge numbers in quarter three and quarter four. So we see quite substantial money getting generated. So debts will not exceed beyond Rs 600 crore.

Q: What would the consolidated balance sheet of the two businesses look like because the Rs 600 crore will now come on to a consolidated balance sheet? Would you use your cash on books which you received from Mylan to actually reduce the debt or do you think that the debt is manageable?

Arun: Strides is debt free. We do have cash on the books. So, we don't see this debt of Rs 600 crore which includes working capital to be anything major. It is about 1.2-1.3 times EBITDA which is perfectly normal, debt equity is very healthy – 0.27 which is very easy to manage.

So, the combined cash flows and like Abhaya mentioned we believe in future of Shasun. It will generate a lot more cash than what it used to be making in the last many quarters. Growth investments are complete at Shasun and we believe the combination can generate enough cash to handle debt.

Also, specifically, we do see the need to use much of that cash. We have already announced the intent to distribute that cash as dividend subject to board approval next week and we have also announced our intent to invest in a biotech division. I don't think that it is stressful; we are very confident and comfortable with that debt position.

Q: There will be no scaling down of debt of the Rs 600 crore that would be on the consolidated balance sheet at least in the medium to near term, right?

Arun: You are right.

Q: SeQuent Scientific has some amount of holding in Shasun Pharma which is run by the promoters of Strides Arcolab. Has there been a past relationship with Shasun which you'll have worked on and hence there was this transition in to the entire deal. Can you give us a sense on that?

Arun: SeQuent started discussions with Shasun first. Predominantly, to take some additional capacity SeQuent badly wanted to expand its business and that led to a partnership with SeQuent and Shasun in the veterinary space to make veterinary APIs.

However, then we started spending a lot more time it was obvious that the synergistic rationale fitted better for Strides and it was very compelling from that perspective.
Then the promoter group started talking in the last many months and we found this concluded solution as the most apt for stakeholders and from every aspect of value creation.

Q: Would you look to convert Shasun Pharmaceuticals into a more formulation driven company. Something which was evident in the fact that you also acquired the branded formulations business of Bafna Pharma in July itself?

Arun: Like me, Abhaya strongly believes that the future lies in formulations. We would like to be a fully integrated and controlled value chain.

You are right, you will see dramatic drops in the quantum of formulation percentage of combined sales but in absolute numbers our API sales will still continue to be big in the combination but as more and more Drug Master Files (DMFs) are being filed up for the global market it will be focused predominantly to the formulation amount.

Q: Is there any chance of merging SeQuent Scientific with the company? What can we expect in terms of a possible dividend payout for shareholders once you all meet on October 7 for the special dividend?

Arun: On the dividend we have to wait till October 7. We have guided the market about our distribution ideas but it is subject to shareholder approval.

We have indicated that we will need only USD 20 million for growth capital out of USD 150 million. So minus that subject to board approvals we would be in a position to dividend that out. So that is exactly how much it is going to be the works being done on the October 7th latest we would be able to let you know.

On your question on SeQuent it is predominantly focussed on the veterinary pharmaceutical space and in very small API manufacturing. So to answer your question there is no plans to bring SeQuent into the combined in the near term or in the future.

23.07 | 0 komentar | Read More

PVR to raise Rs 500 crore through QIP

It also approved management services agreement with its JV firm PVR bluO Entertainment. Moreover, Ajay Bijli along with five independent directors has been appointed.

Multiplex operator PVR  today said that its board has approve plans to raise Rs 500 crore through qualified institutional placement (QIP).

The board in its Annual General Meeting authorised PVR to raise the fund, PVR informed the BSE.

It also approved management services agreement with its JV firm PVR bluO Entertainment. Moreover, Ajay Bijli along with five independent directors has been appointed.

The independent directors are -- Sanjay Kapoor, Sanjay Khanna, Vikram Bakshi, Sanjai Vohra and Amit Burmam. On July 31, PVR had said that it would Rs 500 crore through QIP for any inorganic growth or acquisition. Shares of the company today closed at Rs 700.85 apiece on the BSE, down 0.34 per cent from previous close.

PVR stock price

On September 29, 2014, PVR closed at Rs 700.85, down Rs 2.4, or 0.34 percent. The 52-week high of the share was Rs 746.50 and the 52-week low was Rs 465.00.

The company's trailing 12-month (TTM) EPS was at Rs 12.15 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 57.68. The latest book value of the company is Rs 94.95 per share. At current value, the price-to-book value of the company is 7.38.

23.07 | 0 komentar | Read More

FTIL exits MCX; completes 15% stake sale to Kotak Mah Bk

"FTIL today completed the sale of 15 per cent equity stake in Multi Commodity Exchange of India (MCX) to Kotak Mahindra Bank for a consideration of Rs 459 crore. With this, FTIL's shareholding in MCX is nil," Jignesh Shah-led company said in a statement.

Financial Technologies  (FTIL) today said it has completed the deal to sell its 15 percent stake in commodity exchange MCX to  Kotak Mahindra Bank for Rs 459 crore, marking the company's exit from the bourse.

"FTIL today completed the sale of 15 per cent equity stake in Multi Commodity Exchange of India (MCX) to Kotak Mahindra Bank for a consideration of Rs 459 crore. With this, FTIL's shareholding in MCX is nil," Jignesh Shah-led company said in a statement.

Last week, FTIL concluded a long-term 10-year technology contract with MCX for providing software support and managed services on mutually agreed terms and conditions and further renewal as may be mutually agreed upon, it added.

The technology agreement with MCX paved the completing of the deal with Kotak Mahindra Bank. "I am confident that Kotak Mahindra Group will contribute as significant minority shareholders towards the growth of exchange. We look forward to a constructive partnership with MCX as their technology partner," FTIL MD & CEO Jignesh Shah said in a statement.

India's largest commodity exchange MCX was set up by its erstwhile promoter FTIL in November 2003. The exchange became the country's first exchange to be listed in March 2012. FTIL originally held a 26 percent stake in MCX. It has divested stake in MCX after market regulator FMC had declared the company unfit to run any exchange in the wake of Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL).

The regulator had asked FTIL to reduce its stake in MCX to 2 percent from 26 percent. To begin with divestment process, FTIL had sold 6 percent stake in MCX, including about 2 percent sale to billionaire investor Rakesh Jhunjhunwala, in two rounds for about Rs 220 crore, bringing down its shareholding to 20 percent.

Then in July, FTIL announced sale of 15 percent stake in MCX to Kotak Mahindra Bank and last month the company sold residual 5 percent stake in the bourse for over Rs 200 crore.

Financial Tech stock price

On September 29, 2014, Financial Technologies closed at Rs 228.30, up Rs 10.85, or 4.99 percent. The 52-week high of the share was Rs 403.60 and the 52-week low was Rs 129.95.

The latest book value of the company is Rs 522.91 per share. At current value, the price-to-book value of the company was 0.44.

23.07 | 0 komentar | Read More

Modi woos US CEOs, says India open-minded, wants change

India is open-minded and wants change, Prime Minister Narendra Modi said on Monday during the Breakfast meeting.

After addressing UN General Assembly on Saturday and Indian-American communities at Madison Square Garden on Sunday, Prime Minister Narendra Modi on Monday met top executives of American companies in New York.

India is open-minded and wants change, Prime Minister Narendra Modi said on Monday during the Breakfast meeting.

"India is open-minded. We want change, Change that is not 1 sided. Am discussing with citizens, industrialists * investors," Syed Akbaruddin, spokesperson of the external affairs ministry, in a tweet, quoted Modi as saying.

The breakfast meeting with 11 CEOs, including those of Google, Citigroup and Pepsico, will be followed by one-on-one meetings with six other CEOs of companies like Boeing, IBM, GE and Goldman Sachs.

The morning business engagement is among the most important Modi has scheduled in the US and he is expected to unveil his government's new mantra of "Come, Make in India" - to seek investment and assure them of a red carpet welcome minus the red tape.

Furthermore, regarding the recent coal scam verdict, Modi said, "We want to convert the supreme court judgment on coal allocation into an opportunity to move forward and clean up the past."

23.07 | 0 komentar | Read More

Nifty ends 10 points lower after an interesting session

Every time Nifty went down by close to around 20 points there was some buying while at the high point that is when we were higher by around 20-25 points selling pressure did come in.

An interesting trading session is what we saw today. Every time Nifty went down by close to around 20 points there was some buying while at the high point that is when we were higher by around 20-25 points selling pressure did come in. Nonetheless the Nifty ended with a cut of around 10 points odd and today in fact the volumes were on the lower side given that we have a truncated weekend that was on expected lines.

23.07 | 0 komentar | Read More

Oswal Overseas: Outcome of board meeting

Oswal Overseas at its meeting held on September 22, 2014, has decided to increase the paid up capital by issuing preference shares of Rs. 300,00,000/- (Rupees Three Crores Only) divided by 30,00,000/- (Thirty Lakhs Only) preference shares of Rs. 10 (Rupees Ten Only) each through private placement.

Oswal Overseas Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 22, 2014, has decided to increase the paid up capital by issuing preference shares of Rs. 300,00,000/- (Rupees Three Crores Only) divided by 30,00,000/- (Thirty Lakhs Only) preference shares of Rs. 10 (Rupees Ten Only) each through privateplacement.Source : BSE

Read all announcements in Oswal Overseas

23.07 | 0 komentar | Read More

Dalmia Bharat Sugar and Industries: Outcome of AGM

Dalmia Bharat Sugar and Industries has informed that the 22nd Annual General Meeting (AGM) of the Company was held on August 30, 2014.

Dalmia Bharat Sugar and Industries Ltd has informed BSE that the 22nd Annual General Meeting (AGM) of the Company was held on August 30, 2014.Source : BSE

Read all announcements in Dalmia Sugar

To read the full report click here

23.07 | 0 komentar | Read More

Shyamkamal Investments: Outcome of AGM

Shyamkamal Investments has informed that the 32nd Annual General Meeting (AGM) of the Company was held on September 22, 2014.

To read the full report click here

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Sanghi Industries: Outcome of AGM

Sanghi Industries has informed that the 27th Annual General Meeting (AGM) of the Company was held on September 22, 2014.

To read the full report click here

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Nucleus Software Exports: Outcome of board meeting - Appointment of Woman Director

Nucleus Software Exports at its meeting held on September 20, 2014, in terms of Section 149 and 150 of the Companies Act, 2013 read with relevant Rules and in compliance of listing agreement, appointed Mrs. Elaine Mathias as Additional Director (Independent Director) of the Company with immediate effect.

Nucleus Software Exports Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 20, 2014, in terms of Section 149 and 150 of the Companies Act, 2013 read with relevant Rules and in compliance of listing agreement, appointed Mrs. Elaine Mathias as Additional Director (Independent Director) of the Company with immediate effect.Source : BSE

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Vippy Spinpro's board meeting of Sept 30, 2014

Vippy Spinpro board meeting will be held on September 30, 2014, to consider appointment of CFO Re - Appointment of Whole time Director.

Vippy Spinpro Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 30, 2014, inter alia, to consider following matters:1. Appointment of CFO.2. Re - Appointment of Whole time Director.Source : BSE

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Asian Paints' Q2 results on Oct 22, 2014

Asian Paints board meeting will be held on October 22, 2014, to consider and approve the Audited financial results of the Company for the quarter and half-year ending September 30, 2014 (Q2). Unaudited consolidated financial results of the Company for the quarter and half year ending September 30, 2014.

Asian Paints Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 22, 2014, inter alia, to consider and approve the following:1. Audited financial results of the Company for the quarter and half-year ending September 30, 2014 (Q2).2. Unaudited consolidated financial results of the Company for the quarter and half year ending September 30, 2014.Further, as per "Asian Paints Limited - Code of Conduct for Prevention of Insider Trading" the trading window of the Company will be closed between September 23, 2014 to October 23, 2014 (both days inclusive) for publication of the audited financial results of the Company for the quarter and half-year ending September 30, 2014. The same is being informed to the Directors, persons belonging to the Promoter Group and Designated employees of the Company.Source : BSE

Read all announcements in Asian Paints

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Shakti Pumps India's EGM on Oct 10, 2014

Shakti Pumps India has informed that the Extra Ordinary General Meeting (EGM) of the Company will be held on October 10, 2014.

To read the full report click here

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Exide Industries' Q2 results on Oct 20, 2014

Exide Industries board meeting will be held on October 20, 2014, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ending September 30, 2014 (Q2).

Exide Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 20, 2014, inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ending September 30, 2014 (Q2).Source : BSE

Read all announcements in Exide Ind

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NSE Fin Wiz Season 2: Curtain Raiser

With each passing year India's workforce is incessantly on the rise. With over 12 million youth joining the job brigade every year their every day exposure is primarily limited specifically to their job profiles, thus ignoring their monthly chances of adding additional values to their earnings.

The Indian workforce is strong but needs to become stronger with respect to their financial understanding. With each passing year India's workforce is incessantly on the rise. With over 12 million youth joining the job brigade every year their every day exposure is primarily limited specifically to their job profiles, thus ignoring their monthly chances of adding additional values to their earnings.

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Ind-AS: Widening GAP

Published on Mon, Sep 15,2014 | 20:45, Updated at Mon, Sep 15 at 20:45Source : Moneycontrol.com 

By: Keyur Dave, Director - Grant Thornton India

The world is getting smaller and flatter. Globalisation has made it possible to accept that the world is one market. For better understanding of the business reporting and consistency in accounting policies, there was an urgent need to align to one global accounting language. Application of a single set of accounting requirements would increase the comparability of different entities' accounting numbers. This is the main reason for more than 120 countries to follow global accounting standards, i.e., International Financial Reporting Standards ("IFRS").  

India, one of the most prominent emerging markets is also converging to the IFRS. The Ministry of Corporate Affairs (MCA), based on the recommendation of the Institute of Chartered Accountants of India (ICAI), has issued 35 converged Indian Accounting Standards (Ind-AS). Recently, the Finance Minister in his budget speech proposed to make Ind-AS mandatory from FY 16-17 & stressed on the necessity and urgency of convergence with global standards. With ICAI already submitting a Ind-AS implementation roadmap to MCA, awaiting its final nod.  

Ind AS is not "adoption" of IFRS and includes certain modifications to the IFRS as issued by International Accounting Standard Board (IASB), generally referred as 'carve-outs'. Notably, owing to the carve-outs companies will not be able to make a compliance statement i.e. financial statements comply with IFRS as per IASB. However, from the international stakeholders perspective, Ind-AS will provide a significant leap from the existing standards and can be made IFRS compliant much quicker than moving from the current standards, basically, eliminating the effects of "carve-outs" Let us now discuss about these "carve-outs" and my perspective thereon.

Major carve-outs:  

• Foreign exchange fluctuations:

Ind-AS provides an option to recognise exchange differences arising on translation of certain long-term monetary items directly in equity. Under IFRS, such exchange difference is charged to the income statement. This carve-out was obligatory during the period of 2010-2011under Indian context, since volatility between exchange rates for commonly traded currencies such as US Dollar, Euro, Pounds, etc. was at its peak and companies' statement of profit and loss would reflect unnecessary movement of such currencies and in substance created volatility without any true change in underlying business.

Since then, as demonstrated in the chart above, exchange rates have become quite stable[1]. MCA and ICAI may consider eliminating this carve-out, given that such accounting treatment will not have any acceptance under any globally recognised GAAP. It is imperative to understand other countries' accounting treatment to justify such carve-out which may represent adequate accounting treatment for countries experiencing extreme exchange rate volatility.

• Foreign currency convertible bonds (FCCB):

  IFRS provides guidance that where the conversion of bond into equity shares is fixed, but since exercise price for such conversion is defined in currency other than the functional currency of the entity, the conversion aspect is to be accounted as embedded derivative. Under Ind-AS, it is stated that where the exercise price for the conversion of the FCCB is fixed, irrespective of any currency, it is to be classified as an equity rather than embedded derivative. Indian Companies have issued significant amount of FCCBs' and this carve-out may provide significant gap in recognition, measurement and disclosure as compared to IFRS. From the period August 2013 till July 2014, Indian companies have issued 812 million USD[2] (Approximately INR 48 billion) worth of FCCBs. This is quite a significant number which might impact acceptability of Ind-AS.

• Financial liabilities at Fair Value Through Profit and Loss (FVTPL):

  Ind-AS provides exemption from recognition of change in fair value due to entity's own credit risk. Indeed, recognition of own credit risk was a debatable issue and IASB had a detailed discussion to firm up its view on its recognition. Finally, IASB had issued IFRS 9 "Financial Instruments" which suggest that entity should recognise change in fair value due to its own credit risk in other comprehensive income. This carve-out also challenges the methodology of fair value of the financial liability, since by not recognising own credit risk the fair value of the instrument would not reconcile from the perspective of the market participants. Indian companies' instruments would not be comparable with global parameters of fair value.

Guidance not issued under Ind-AS:

Keeping in mind the Indian practices and its adverse impact on reporting, regulators have not issued guidance relating to agreements for the construction of real estate (IFRIC 15). The concept of transfer of significant risk and reward under construction contract and sale of completed contracts are critical to understand under such guidance. Accounting under IFRIC 15 was a debatable issue. Arguments were floated with respect to when an entity satisfies a performance obligation, like when did obligation for transfer of land accounted? When did obligation for underlying construction of property on that land was accounted? I must say, it is worth to understand the arguments before any act and appreciate the obstacles faced by emerging economies.

Agricultural accounting (IAS 41) has not been adopted due to difficulties in determining the fair value of the biological assets. However, Exposure draft on Ind-AS 41 has been issued. It is a surprising element that there is no guidance of agricultural accounting in an agricultural country.

Guidance deferred under Ind-AS:

Ind-AS coverage has deferred few relevant guidance, like IFRIC 4 and IFRIC 12.

• Determining whether an arrangement contains a lease (IFRIC 4) issued by Interpretation committee is an extended arm of standard on "Leases". This interpretation assists in identifying an arrangement which is in substance leases but not in form. Deferment of such guidance under Ind-AS would certainly scope out such arrangement from lease accounting and they might be accounted in the same form as they are accounted currently under Indian GAAP.

• Service Concession Arrangements (IFRIC 12) issued by interpretation committee usually applies to infrastructure entities engaged in public-to-private partnerships arrangements that are on Build-own-operate-transfer (BOOT). As a consequence of application of IFRIC 12 the entity is required to recognise an intangible asset or a financial asset or both based on its right to collect revenue over the period of the arrangement. Since the ownership gets transferred to the grantor at the end of the arrangement, control cannot be established and thus PP&E is not recognised in the financial statement. Deferment of such guidance may result in recognition of PP&E as compared to financial asset or an intangible asset. This would be a bigger challenge on acceptance from framework perspective, given that "control" is not yet established, while entity recognises PP&E in the financial statement. 

Major Carve-outs relevant for first-time adoption:

• Presentation of Comparatives and Reconciliations:

  At transition, IFRS mandates entities to present the comparatives and reconciliation. However, Ind AS 101 requires an entity to provide comparatives as per the existing notified Accounting Standards. Entities have an option to present Ind-AS comparatives on a memorandum basis. Entities which do not exercise this option, they need not provide reconciliation at transition but are expected to disclose significant differences pertaining to total comprehensive income. However, entities that provide comparatives would have to provide reconciliations. Interesting to observe that entities which prepare the comparatives, they need to provide justification of transition by reconciliation. Is this adequate approach towards transition? This might tend all the entities not to prepare comparatives under Ind-AS and avoid reconciliation. Though, ICAI road map to MCA suggested having comparatives under Ind-AS.

• Property plant and equipment (PP&E):

  To facilitate smooth convergence with Ind-As and to reduce operational difficulties on first time adoption, Ind AS 101 provides the option to carry forward the existing carrying values of all the items of PP&E as opening balances under Ind AS. Indian companies might have added foreign exchange movement to the cost of asset under existing notified accounting standards, which will get depreciated over the remaining useful life of the asset. This might be a smooth starting point for Ind-AS, however this would not certainly be a good indicator to represent Ind-AS as a global standard with such carve-out.

New standard:

IASB has issued IFRS 9 and also permitted its early application. Regulator might consider accepting similar standard under Ind-AS. Considering the cost-benefit analysis, it may provide options to transit directly to standard similar to IFRS 9 or to Ind-AS 39. This might save cost of transiting initially to Ind-AS 39 and later to standard similar to IFRS 9. Regulator may think of accommodating similar stand for IFRS 15 "Revenue from Contracts with Customers".  

One more step:   

There is no doubt that we are moving towards better accounting standards which would certainly enhance the reporting which is based on substance. Indian companies financial would positively attract the global investors and raise its bar to the global standards; however carve-outs might act as hurdles. Many companies would not be able to gain the advantage of dual compliance and they might need to provide further adjustments to comply with IFRS. It is in favour of Indian companies; if we can narrow down the gap between Ind-AS and IFRS, so that at one go companies may get dual compliance.

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Indian Hotels Company change in director

Indian Hotels Company has informed that Mr. Guy Crawford has stepped down as Director of the Company with effect from September 08, 2014.

Indian Hotels Company Ltd has informed BSE that Mr. Guy Crawford has stepped down as Director of the Company with effect from September 08, 2014.Source : BSE

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Tata Elxsi's chief financial officer Sudha Madhavan resigns

Tata Elxsi has informed that Mrs. Sudha Madhavan, Chief Financial Officer, has resigned from the services of the Company to seek other opportunities. She will be relinquishing her position on and from September 19, 2014.

Tata Elxsi Ltd has informed BSE that Mrs. Sudha Madhavan, Chief Financial Officer, has resigned from the services of the Company to seek other opportunities. She will be relinquishing her position on and from September 19, 2014.Mr. Ramaseshan K, who currently heads the Business Finance, will look after the entire Finance function of the Company.Source : BSE

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Delta Corp: Outcome of allotment committee meeting

Delta Corp has informed that the Allotment Committee of the Board of Directors of the Company at its meeting held on September 15, 2014 has made allotment of 1,94,750 Equity Shares of Re. 1/- each to the employee of the Company and its subsidiaries under

Delta Corp Ltd has informed BSE that the Allotment Committee of the Board of Directors of the Company at its meeting held on September 15, 2014 has made allotment of 1,94,750 Equity Shares of Re. 1/- each to the employee of the Company and its subsidiaries under "Delta Corp ESOP- 2009" Scheme.The paid up Equity Share Capital of the Company has accordingly increased from 22,95,76,854 Equity Shares of Re. 1/- each to 22,97,71,604 Equity Shares of Re. 1/- each.Source : BSE

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SEBI Amends Clause 49: Quick Highlights!

Published on Mon, Sep 15,2014 | 20:58, Updated at Mon, Sep 15 at 21:29Source : Moneycontrol.com 

SEBI's Clause 49 that lays down governance requirements for listed companies was amended in April this year. The changes were brought in to align the governance norms with those laid out in the Companies Act, 2013 – but in some cases SEBI went beyond and laid down higher thresholds for listed companies. Today SEBI eased some of those thresholds by way of an amendment to its April Circular. CNBC-TV18's Payaswini Upadhyay reports on the highlights.

First the not so-good news. Since the time SEBI had put out this Circular in April, industry was lobbying hard to have the effective date deferred. That hasn't happened- Clause 49 will become effective in 15 days from today i.e. October 1st.

SEBI Amends Clause 49!

New Clause 49 to be effective October 1st, 2014
No delay in implementation date

But by all means, this is a much diluted version and industry should find it easier to comply with.

The key changes lie in two buckets- Independent Directors and Related Party Transactions.

Let's first go over the changes related to Independent Directors. SEBI April Circular said an Independent Director who has already served on a company's board for 5 years can serve only one more term of 5 years. SEBI has eased this requirement and brought it in line with the Companies Act that gives independent directors 2 terms of 5 years each.

SEBI Amends Clause 49!
Independent Directors: Tenure

Cos Act, 2013: 5years + 5 years + 3 years cooling off
April Circular, SEBI: One more term of 5 years if 5 yrs already served
Amended Circular, SEBI: In line with Cos Act

The second change relates to who can be considered Independent. The April Circular gave a wide meaning to it to say that a person who has or had a pecuniary relationship with the company, its subsidiary, associate, promoters, directors etc will not be considered as independent. SEBI has amended this to say that there should not be any material pecuniary relationship. Curiously, the Companies Act still doesn't talk about materiality- so the MCA may need to clarify that for companies to benefit from the dilution under amended Clause 49. 

SEBI Amends Clause 49!
Who Is An Independent Director?

April Circular, SEBI: No pecuniary relationship with company. Subsidiary, promoter etc
Amended Circular, SEBI: No material pecuniary relationship…
Cos Act, 2013: No concept of materiality

The third independent director related change is with regards to women directors. Listed companies have now been given time until April 2015 to induct at least one woman director on their Boards

SEBI Amends Clause 49!
Woman Director

April Circular: All listed companies to have 1 Woman Dir effective Oct 1st, 2014
Amended Circular:  All listed companies to have 1 Woman Dir effective Apr 1st, 2015

Let's come to thechanges on the related party transactions or RPT front.

First is on the definition of RPT- The Companies Act defines related party transactions mostly in connection to directors, relatives and KMP. SEBI extended the definition in its April Circular to include those in control or joint control or having significant influence. That created a lot of confusion among companies who said the concept of control in itself is vague and this would just lead to interpretational issues. SEBI has paid heed to it and has aligned its RPT definition to that under Companies Act and Accounting Standards.

SEBI Amends Clause 49!
RPT: Definition

Cos Act, 2013: Defined in connection to directors, relatives, KMP
April Circular, SEBI: Extended to those in control/ joint control/having significant influence
Amended Circular: Cos Act + Accounting Standards definition

Two, SEBI has diluted its materiality thresholds for shareholder approval. In its April Circular, SEBI defined material to include transaction exceeding 5% of annual turnover or 25% of networth. SEBI has removed the networth requirement and increased the turnover to 10%. This translates into lesser number of RPTs going to shareholders for approval.

SEBI Amends Clause 49!
'Material' RPTs

April Circular, SEBI: Exceeding 5% of annual turnover OR 25% of networth
Amended Circular: Exceeding 10% of annual turnover

Last RPT related change is with regards to transactions between two government companies or transactions between a holding company and its subsidiary- both have been exempted from the requirement of prior audit committee approval and special shareholder resolution. Here again, the Companies Act is silent on exemption to government companies…so MCA may issue a clarification to this effect soon.
 
SEBI Amends Clause 49!
Exempted RPTs

No Audit Committee approval or special resolution for

- Transactions between 2 government companies

- Transaction between Holding Co & its Wholly-owned subsidiary

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Pokarna: Outcome of AGM

Pokarna has informed that the 23rd Annual General Meeting (AGM) of the Company was held on September 15, 2014.

To read the full report click here

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Signs of recovery? Advance tax for 14 cos up 19%

CNBC-TV18 learns that most public sector banks, who've been facing NPA concerns, have surprisingly seen an increase in their advance tax payments.

The initial trend for the second quarter (Q2) advance tax payment is indicating a healthy trend, suggesting a 19 percent increase for the top 14 companies. CNBC-TV18 learns that most public sector banks, who've been facing NPA concerns, have surprisingly seen an increase in their advance tax payments.

In the second installment, where the companies have to pay 30 percent  as advance tax, the country's largest lender  State Bank of India (SBI) is likely to shell out Rs 1390 crore, which is over 20 percent higher than what it paid last year. Other PSU banks like BoI , BoB ,  Central Bank and  IDBI are not too far behind.

Even private lender like  HDFC is likely to shell out Rs 650 crore versus Rs 560 crore as advance tax in Q2. The IT and the pharma sector maintained their earlier growth momentum, with  TCS paying around Rs 1390 crore as advance tax payments and  Lupin shelling out around Rs 231 crore compared to Rs 166 crore earlier. Surprisingly,  BPCL bucked their earlier trend and paid double the amount at around Rs 487 crore as advance tax versus Rs 202 crore it paid the year before.

The laggards this quarter have been the auto sector yet again as slowing sales, especially in the commercial vehicle segment.  Tata Motors have not made any advance tax payment this quarter. While  Bajaj Auto has paid around Rs 325 crore, lower than what it paid last time.

While top 14 companies are showing a 19 percent increase in numbers, for all 100 companies experts say it may come down to 13-15 percent. It will be interesting to see once all the numbers come out whether they meet the growth of 17 percent overall to reach a target of Rs 7 lakh crore.

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CCI clears Zuari's open offer for MCFL shareholders

Paving the way for competing open offers for Mangalore Chemicals and Fertilizers ' shareholders, fair trade watchdog CCI has cleared Zuari 's proposal to buy additional 26 per cent stake in the Vijay Mallya group firm. Deepak Fertilizers , which is also in the fray to snap up stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), last month received the green signal from the Competition Commission of India for its Rs 190-crore open offer.

Zuari entities' Rs 211-crore offer for 26 per cent stake in MCFL is supported by the existing promoters and would be "a competing open offer" to Deepak Fertilizers' offer. Giving its green signal, the Commission said the "proposed combination is not likely to have appreciable adverse effect on competition in India".

Zuari Fertilisers and Chemicals is currently setting up a Single Super Phosphate plant in Maharashtra and does not yet manufacture or trade in any fertiliser products. The entity is a wholly-owned subsidiary of Zuari Agro Chemicals, which is  into manufacture and trading of fertilisers.

The public announcement for the open offer was announced on May 12.

Citing information provided by the acquirers, the Commission said that the "parties have overlaps in the fertilisers, pesticides and chemicals and organic products". "However, it is observed that the overlap in pesticides, chemicals and organic products is minimal," CCI said in its order dated September 4 and made public today.

Capital market regulator Sebi, which had given its go-ahead to the proposed stake purchase by Deepak Fertilizers and Zuari Group in MCFL, had also ruled that their respective open offers can commence only after CCI nod.

Either of the two open offers can start only within 12 working days from receiving CCI approval for the second deal. According to the Commission, it is observed that apart from a few fertilisers which Zuari entities manufacture, they are largely involved in trading of fertilisers.

"Further, the composite market shares of the parties in primary nutrients, as well as in overlapping straight and complex fertilisers such as urea (straight nitrogenous fertiliser), MOP (straight potassic fertiliser), SSP (straight phosphatic fertiliser) and NPK (complex fertiliser), except for in Calcium Nitrate, are not substantial.

"Also the incremental change in the market share is minimal in most cases. With respect to most of the remaining overlapping fertiliser products, including Calcium Nitrate, the parties' presence is only through trading," it noted.

In May, UB Group joined hands with the Zuari to ward off a hostile takeover bid by Deepak Fertilizers for MCFL. The watchdog also said most of these overlapping products also fall under the OGL, and therefore, any person with requisite approvals can import them into India.

Noting that there are significant competitors in the market, the Commission mentioned names such as Indian Farmers Fertiliser Cooperative Ltd, National Fertilisers Ltd, Fertilizers & Chemicals Travancore Ltd, Coromandel International Ltd, DCM Shriram Consolidated Ltd, Nagarjuna Fertilizers & Chemicals Ltd, Deepak Fertilizers and Petrochemicals Corporation Ltd.

The notice seeking approval for the proposed deal was submitted to the Commission on June 11. In June, Zuari Fertilisers and Chemicals and Zuari Agro Chemicals had entered into a pact with UB group comprising of United Breweries (Holdings) Ltd, Kingfisher Finvest India Ltd and McDowell Holdings Ltd.

The battle for MCFL between Deepak Fertilizers and Zuari Group was triggered in April 2013 when the latter bought about 10 per cent stake in Vijay Mallya firm through open market. Later, Deepak Fertilizers acquired 24.46 per cent stake in MCFL in July 2013. Then, Zuari group increased its stake to 16.43 per cent in the same month.

Earlier this year, Deepak Fertilizers further hiked its shareholding in MCFL to 25.31 per cent -- thereby triggering the mandatory open offer clause under  Sebi norms. Since Saroj Poddar-led Zuari group along with UB Group is looking to purchase 26 per cent in MCFL, they have to make an open offer under Sebi rules.

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MCX-SX gets conditional 1-year renewal; Sebi seeks biz plan

As crisis at its erstwhile promoter group continues to cast a shadow,  MCX Stock Exchange today got a one-year conditional renewal to function as a bourse and regulator Sebi asked it to submit a long-term sustainable business plan and take other remedial actions. Besides, the exchange would not be allowed to introduce any new contract till it meets minimum networth requirement of Rs 100 crore, for which it has been given three-months time.

The current recognition of MCX-SX, which was set up by Jignesh Shah-led Financial Technologies group, expired today, but Sebi has now decided to extend it for a period of one year, commencing tomorrow and ending on September 15, 2015.

The renewal is subject to five specific conditions and compliance to other conditions specified by Sebi from time to time, the Securities and Exchange Board of India (Sebi) said in a statement.

"The exchange shall  build its networth (undisputed) to the level as prescribed in Sebi (SECC) Regulations 2012 within a period of three months from the date of renewal of recognition. Further, the exchange shall also submit a business plan to satisfy the regulator about the long term sustainability of the exchange," the regulator said.

While the exchange has been claiming to have a networth of Rs 100 crore, the regulator does not share the same view and pegs the figure at about Rs 56 crore, sources said. Sebi further said that MCX-SX "shall not introduce any new contracts till fulfilment of networth requirement" and it would have to comply with Sebi's directions with regard to entities which have been declared not 'fit and proper' person.

The regulator also asked the exchange to "take immediate steps to rectify the deficiencies pointed out in the systems audit as well as special audit." Besides, the exchange will have to take necessary steps for compliance with shareholding requirement by all the shareholders as per SEBI (SECC) Regulations 2012, Sebi said.

Earlier in March this year, Sebi ruled that Financial Technologies group was not "fit and proper" to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities.

This order followed Shah-led group coming under scanner of various agencies, including CBI, for alleged irregularities in the grant of license to MCX-SX, as also for the payment crisis worth thousands of crores at National Spot Exchange (NSEL), also set up by the same group.

While FTIL group has challenged the Sebi order on their 'fit and proper status', they no more qualify as 'promoter' in MCX-SX and some other entities such as Multi Commodity Exchange (MCX).

Last year also, while granting a one-year renewal to MCX-SX, Sebi had asked the exchange to strengthen its governance structure to continue remaining a recognized bourse. Sources said that it might be difficult for MCX-SX to meet some of the conditions set by Sebi for the latest renewal.

The bourse earned total revenue from operations of Rs 91.83 crore for the latest fiscal 2013-14, down from Rs 155.23 crore in the previous year.

It incurred a loss of Rs 154.53 crore for the last year, as against a profit of Rs 21.42 crore in 2012-13. The exchange has attributed the loss to commencement of new segments and fall in volumes in the currency derivatives segment.

"The sentimental fallout of the defaults in another Exchange floated by the erstwhile promoter and introduction of zero pricing by competitor among other events leading to negative publicity also contributed to the fall in volumes," MCX-SX said in its annual report.

"With the management and Board level changes as well as relaxations in the regulatory regime for CD Segment, your Directors feel the company would be able to see better volumes in the CD segment and consequently improve its financial performance in the coming years," it informed its investors.

MCX-SX was notified a 'recognised stock exchange' on December 21, 2012. Its shareholders include top public sector banks, private sector banks and domestic financial institutions who, together hold over 88 per cent stake. It offers trading in Capital Market, Futures & Options, Currency Derivatives and Debt Market segments. It has also received in-principle approval from Sebi for operationalizing SME trading platform.

It commenced operations in the Currency Derivatives Segment on October 7, 2008. It launched Capital Market Segment, Futures and Options Segment and flagship index 'SX40' on February 9, 2013 and commenced trading from February 11, 2013.

The Debt Market Segment was launched on June 7, 2013, and trading commenced from June 10, 2013. The Exchange started live trading in cash-settled Interest Rate Futures (IRF), on 10-year Government of India security, in its Currency Derivative Segment from January 20, 2014.

MCX-SX had first got a license from Sebi to operate as a stock exchange in September 2012 and this permit was to expire on September 15, 2013, before getting extended by a year.

The bourse began operations in February 2013. However, the trading volumes of the exchange has been quite low as compared to rivals BSE and NSE, while problems at group entity NSEL in July 2013 further worsened the situation.

While Sebi has decided to renew its license twice now, the regulator has been asking MCX-SX to work towards strengthening its governance practices and comply with all applicable regulations to operate as a stock exchange. Sebi also previously warned that the licence can be withdrawn in case of any non-compliance to its directions.

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CCI approves 10.16% stake buy in Intas by Temasek

Under the proposed deal, Dunearn Investments (Mauritius) Pte. Ltd -- a indirect subsidiary of Temasek -- would acquire the stake from Mozart Ltd -- a wholly owned subsidiary of ChrysCapital III LLC.

Fair trade regulator CCI has cleared Singapore government investment arm Temasek Holding's proposed acquisition of 10.16 per cent stake in Indian firm Intas Pharmaceuticals, saying the deal will not raise anti-competition concerns.

Under the proposed deal, Dunearn Investments (Mauritius) Pte. Ltd -- a indirect subsidiary of Temasek -- would acquire the stake from Mozart Ltd -- a wholly owned subsidiary of ChrysCapital III LLC.

In an order released today, the Competition Commission of India (CCI) said "that the proposed combination is not likely to have an appreciable adverse effort on competition in India". The Commission said that "there are no horizontal overlaps between the products and services of Intas and the rest of the Temasek group".

"...Temasek has some minority investment in the companies engaged in the pharmaceutical and health sector in India including Medreich Ltd, a pharmaceutical company in India," CCI said.

Among others, CCI said that "in respect of the overlapping products of Intas and Medreich Ltd, the combined market share is of minimal nature". "Further, as stated in the notice neither Temasek nor any of its subsidiaries, associates or joint ventures has any significant vertical linkage with any of the business activities of Intas or its subsidiaries in India," CCI added. Intas, incorporated in India, is a vertically integrated pharmaceutical company with global operations.

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Dabur India's director Albert Wiseman Paterson resigns

Dabur India has informed that Mr. Albert Wiseman Paterson, a non executive independent director of the Company has submitted his resignation w.e.f. September 08, 2014, from the Board due to preoccupation with his increased international role in other Companies.

Dabur India Ltd has informed BSE that Mr. Albert Wiseman Paterson, a non executive independent director of the Company has submitted his resignation w.e.f. September 08, 2014, from the Board due to preoccupation with his increased international role in other Companies.Source : BSE

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KIFS Financial Services: Outcome of AGM (Clause 35A, Scrutinizer Report)

KIFS Financial Services has informed that the 19th Annual General Meeting (AGM) of the Company was held on September 06, 2014, under Clause 35A. In this regards, the Company has submitted to BSE a copy of Scrutinizer Report.

KIFS Financial Services Ltd has informed BSE that the 19th Annual General Meeting (AGM) of the Company was held on September 06, 2014, under Clause 35A.In this regards, the Company has submitted to BSE a copy of Scrutinizer Report.Source : BSE

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Eastern Sugar Industries' board meeting on Sept 16, 2014

Eastern Sugar & Industries board meeting will be held on September 16, 2014, to consider the allotment of 70,00,000 equity shares of Rs. 10/- each issued at par on preferential basis and 52,50,000 equity shares against 5,25,000 cumulative convertible preference shares at par in terms of special resolution passed on October 03, 2013.

Eastern Sugar & Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 16, 2014, to consider the following business:1. To consider the allotment of 70,00,000 equity shares of Rs. 10/- each issued at par on preferential basis and 52,50,000 equity shares against 5,25,000 cumulative convertible preference shares at par in terms of special resolution passed on October 03, 2013 and in-principle approval received from BSE on September 04, 2014.2. To consider seeking approval of shareholders for the following:a. Resolution u/s 180 (1) (a) for authorizing board to create security.b. Resolution u/s 180 (1) (c) for authorizing board to borrow money.c. Others.Source : BSE

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Dabur India's consider interim dividend

Dabur India's board meeting will be held on September 15, 2014, to consider the declaration of interim dividend on the equity shares of the Company for the Financial Year 2014-15. Further, in terms of provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992, the

Dabur India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 15, 2014, inter alia, to consider the declaration of interim dividend on the equity shares of the Company for the Financial Year 2014-15.Further, in terms of provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992, the "Trading Window" for trading in the equity share of the Company shall remain closed from September 09, 2014 to September 16, 2014 (both days inclusive).Source : BSE

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Jayshree Chemicals: Outcome of board Meeting

Jayshree Chemicals in its urgent meeting held on September 08, 2014, has approved sale of the Company's Chlor Alkali business, comprising of manufacturing facilities at Ganjam, Odisha and Salt Works in Andhra Pradesh to Aditya Birla Chemicals (India) Ltd.

Jayshree Chemicals Ltd has informed BSE that the Board of Directors of the Company at its urgent meeting held on September 08, 2014, has approved sale of the Company's Chlor Alkali business, comprising of manufacturing facilities at Ganjam, Odisha and Salt Works in Andhra Pradesh to Aditya Birla Chemicals (India) Ltd for a cash consideration of Rs. 212 Crores (Rs. Two Hundred & Twelve Crores only). The transaction will be done by way of slump sale of the business undertaking and is subject to approvals of the shareholders of the Company and other necessary approvals of various Government Agencies.Source : BSE

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Barak Valley Cements: Outcome of AGM

Barak Valley Cements has informed that the 15th Annual General Meeting (AGM) of the Company was held on September 08, 2014.

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Sand Plast (India): Outcome of board meeting

Sand Plast (India) at its meeting held on September 05, 2014, has decided to make an application to Registrar of Companies, Rajasthan, for extension for holding the Annual General Meeting of the Company.

Sand Plast (India) Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 05, 2014, has decided to make an application to Registrar of Companies, Rajasthan, for extension for holding the Annual General Meeting of the Company. Upon receiving the approval from the Registrar of Companies, Rajasthan, the Company shall accordingly intimate the Stock Exchanges and other departments, wherever required.Source : BSE

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To launch SUV in H12015; hopeful on Guj plant vote: Maruti

In an exclusive interview, CNBC-TV18's Shereen Bhan spoke with RC Bhargava, chairman of Maruti Suzuki India , to discuss the company's upcoming plant in Gujarat, which attracted some controversy early this year, as well as its business plans with respect to new products and markets.

Below is the transcript of the interview on CNBC-TV18.

Q: Let me get you to address the news that is making headlines today and that is the fact that the Haryana government has halted everything at your R&D facility in Rohtak due to the lack of an environment clearance. This is not a new issue but do you believe that a resolution is now only possible post the Haryana elections once the new regime is in place?

A: I think a resolution is partly in the courts. The matter is sub judice so it is difficult to talk about the merits of the case. However, the answer ultimately will lie in some amendment to the environmental rules and regulations that were made by the previous government, which gave rise to this kind of situation.

Q: Let me ask you about the other issue which created controversy a couple of months ago and now of course is perhaps going to be voted on (by minority shareholders) very shortly from hereon -- the Gujarat contract agreement between you and Suzuki. I understand that you have been meeting investors: FIIs, domestic institutions. Where do things currently stand, have you been able to generate enough support?

A: We have met investors all over the world. All the major investors we have met in the US, UK, Hong Kong, Singapore and of course in India, mostly in Mumbai and Chennai. No investor has anything to say adverse against the proposed arrangement.

Q: So you have been able to convince them?

A: Foreign investors are almost 100 percent positive on this. Some of the Indian investors came up with two interesting things. One is they said we cannot believe that any arrangement of this kind can be a win-win for both parties because in this business, we think it is always a zero-sum game. They don't believe that it can be a win-win, which actually it is a win-win because it leverages the low cost money available in Japan.

Q: Are they expressing this reservation even after the reworked agreement that has been put out?

A: They just don't like to believe. The second thing is some of them think this gives us an opportunity to apply a little pressure on Maruti and do a little arm-twisting. So, while the main issue they won't contest but for example they say, we want you to give higher dividend , declare a dividend policy and do something with Suzuki on royalty rates.

So, that kind of pressure is being brought. It has nothing to do with the subject of vote but the opportunity is being used to put pressure in other areas.

Q: Did you agree to revision as far as the royalty rates are concerned or on the dividend issue because, as you said, pressure is being built on you?

A: Suzuki had changed the royalty policy earlier because we had been discussing this for a long time. For all licence agreements of new products which we will sign hereafter, royalty will be expressed in rupees on the Indian price of the car. It means that what has been happening over the last four years in terms of the royalty being exposed to the yen fluctuation will cease. We will have certainty on the amount of royalty to be paid.

The second change that has also been made is that to the extent any future model there is an Indian content in the development -- in other words the Rohtak R&D will put in efforts into it -- to that extent, the royalty will be adjusted downwards.

Q: What kind of downward revision because now most of the products are being co-developed?

A: It will depend how much work is done here. For each product, this will have to be assessed and the amount worked out.

Q: Going back to the point that you mentioned that the royalty rate will now be determined on rupee terms as opposed to yen terms, again there are question marks on the decision because the view is that on account of what is happening with the yen versus the US dollar, this is a decision being taken once again to benefit Suzuki?

A: I don't think any company wants to take exchange rate risk. What we are doing by expressing the royalty in yen is that we are assuming the exchange rate risk. Nobody can predict where exchange rates will move over the long term. So the question is who should take the exchange rate risks? Early on, Suzuki was assuming the risk. When the government allowed a change in royalty, Suzuki went to the system of charging royalty in yen on the grounds that their R&D costs were in Yen and therefore they would like to get royalty in yen because the royalty is a kind of deferred payment on the cost of doing R&D.

However since we kept telling Suzuki that we are less able to handle this exchange rate risk, you have global operations and you are better able to sort of diversify your risks, we feel it is better you take the risks rather than us. So they finally agreed. Actually we have been discussing this with them for about one and half years that this exchange risk to us is…

Q: (Interrupts) what has been the reaction from investors as far as this particular change is concerned?

A: They are happy with this because at least they know what it is. The main thing in most of these investors is they want certainty about what is going to happen. They don't like volatility and a situation where they are not able to project what the margins would be or what the earnings will be because you can't do it if there is an exchange risk involved. At the moment, the yen has weakened but not all that much. It has gone from 100 to 105 today but what will happen three years from today, who can predict?

Q: So as far as the issue of royalty and dividend is concerned since you clearly said that that is being used to arm-twist you to get the support of domestic institutions. Minus that do you believe that you are going to be in trouble as far as domestic institutional support is concerned for Gujarat?

A: No, there is no issue raised. Almost everybody accepts that this is very much beneficial to Maruti. Nobody can actually point out a reason why it is not. All that they (domestic institutional investors) say is, yes, we recognise it is beneficial but we can't believe it is a win-win, so there must be something else which we don't know.

Q: So when does this come up for vote. I believe you are looking at the possibility of October?

A: It is one of the possibilities but it is not yet decided. We have yet to take a view on when would be the right time.

Q: What are you waiting for? Are you waiting to try and muster up more support?

A: No, we don't think there is more support. We have met everybody, so that story is over.

Q: The LICs of the world are onboard?

A: We have had three meetings with LIC and they seem to be quite onboard.

Q: If the minority vote goes against you -- and we have seen a fair degree of activism especially in the last couple of months -- is there a plan B?

A: We haven't made a plan B yet.

Q: But don't you think you may need to keep a plan B in place in case the minority vote goes against you?

A: No, I don't think we need a plan B. I don't think it will go against us.

Q: You are absolutely certain about that?

A: That is our judgement. That it can't go against us. It will be too perverse to go against us.

Q: So if not October, what is the earliest that we can actually see this go to vote?

A: I can't give you a date yet.

Q: Any particular reason why there is still some doubt on when this is actually going to go to vote?

A: No, but we have to see what the correct timing for doing this is going to be.

Q: Are you pushing back the plans as far as commissioning Gujarat is concerned?

A: No, that is carrying on as we had planned. In any case Maruti can continue to invest there and when the vote takes place after that we will just transfer all that to Suzuki and they will reimburse the money.

Q: But you are not reviewing your plans on commissioning Gujarat at this point in time. It is on track and on schedule?

A: No. The recent news report was strange news because we have said we should commission it by 2017 at least for the last year and half. So why suddenly somebody would say we postponed it by a year now, I am not sure. In any case earlier date was 2015. So if we postponed it is two years, not one year.

Q: Do you believe that there is a fear that you may be spreading yourself to thin in light commercial vehicles (LCVs), sport utility vehicle (SUVs)? You are of course the small car specialist, that is where your bulk of money comes in from.

A: SUV is very much a part of our car segment. So that is natural course of development for us

Q: Except that you had a disastrous launch, the relaunch in that segment with the Vitara?

A: Sorry, we have never been in the SUV segment.

Q: Why, the Vitara is an SUV?

A: That is a 100 percent imported SUV at a price the same on par with the Honda CRVs and how many do they sell. But the big domestic market for SUVs is over 500,000 today. It constitutes about 21 percent of the car market. So we are number one player in India. Can we afford not to be in 21 percent of the market and leave it to anybody who wants to get in the market? People are getting into it, the domestic and foreign players. So what is special about Hyundai or a Ford or a GM that they should get into the SUV market and we shouldn't.

Q: So, how soon are we going to see the Maruti SUVs localised, priced for the Indian market out in the market?

A: The first SUV we will see in the first half of next year.

Q: And what kind of pricing are you looking at?

A: It will be in the same segment as the Duster. So it has to be priced competitively with the Duster.

Q: What kind of margins will you enjoy on those kind of products?

A: I don't know at this point. A second SUV will happen one year after that which will be the compact SUV and that being in the same segment as the Honda Mobilio. We will have to price competitively that way. So pricing has to be competitive.

Q: Let me ask you about the light commercial vehicle (LCV) plans and how soon we are actually going to see you put that out into the market as well and what the strategy is going to be there?

A: The LCV is due again early next year, first half of next year but our marketing strategy there is still being evolved I don't think we are going to launch the SUV across the country in one go. We are going to go a little bit gradually in spreading its coverage because it is a product and a segment, which we have never entered before.

The sale of LCVs is to a different class of customer. It requires the sales and service organisation a different mindset and we need to learn that.

So we don't think we should in that area spread ourselves too thin by trying to cover all parts of India in one go.

Q: So you will set up specific dealers so on and so forth?

A: We will go slowly and keep acquiring knowledge and skills on how to sell this product and ensure that when we give the product to a customer he remains a happy customer after that. So it will take a little time to cover all of India. It is not something we are going to rush into.

Q: But again, what is the strategy as far as these new markets are concerned in terms of profitability?

A: We never do a product -- knowingly at least -- which is not profitable and the SUV will conform to our minimum standards of profitability, we will always look for that.

The Gypsy was also in a sense in the SUV segment. But it had a very limited market, it was four wheel drive, it was petrol.

The problem in India is that the SUV segment is totally diesel. We couldn't enter this segment earlier because we didn't have diesel options. So the reason we have delayed entry into the SUV is not that we didn't recognise that this is a sector we should be in.

Suzuki is in the SUV sector the world over, but they couldn't succeed in India because of the fuel issues. But now that the diesel issue has been sorted out and we have a diesel engine, we are entering the SUV segment. The only new segment is that LCV.

Q: On the LCV again, because it is already a business where there are a lot of entrenched players in the market. So you are not going to be the first mover in that sense. What kind of profitability can you expect there?

A: Again the same question of getting the minimum return on our investment. We won't enter a segment if we didn't think we could make a profit. So we will aim to get the kind of profit we are getting on other products but as I said we will go slowly in this segment.

So it may take a little time to get to the full profit levels but we don't see any reason why once we have fully got the hang of this business, the SUV segment should not be as profitable as the car segment.

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SAT stays Sebi penalty on Satyam's Raju; upholds ban

Sebi on July 15 this year barred Ramalinga Raju and the four others from accessing the market for 14 years and asked them to return Rs 1,849 crore in unlawful gains with 12 percent interest, in total a disgorgement amount of over Rs 3,000 crore.

The Securities Appellate Tribunal today stayed the Rs 1,849-crore penalty that Sebi had slapped on the founder-chairman of Satyam Computer Services, B Ramalinga Raju and four others, but upheld a ban on them from accessing the markets.

The tribunal posted the matter for further hearing in December, when it will decide whether to admit the pleas of the Raju brothers and others against Sebi order.

The tribunal asked Sebi to explain why such a large amount was imposed as part of a disgorgement order and to file an affidavit stating its position by November 7. The tribunal also asked Raju and four others named in the scam to file counter-affidavits by December 15.

The four others facing the prohibitory orders are Raju's brother B Rama Raju (the then managing director of Satyam), Vadlamani Srinivas (ex-chief financial officer), G Ramakrishna (ex-vice president) and VS Prabhakara Gupta (ex-head of internal audit).

Following the Sebi order, the Raju brothers had moved the SAT last Friday.

Sebi on July 15 this year barred Ramalinga Raju and the four others from accessing the market for 14 years and asked them to return Rs 1,849 crore in unlawful gains with 12 percent interest, in total a disgorgement amount of over Rs 3,000 crore.

Sebi asked them to pay up within 45 days of the order, closing five-and-a-half year long probe into the country's biggest corporate fraud.

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Coalgate: No objection to de-allocation, govt tells SC

Government today left it to the Supreme Court to decide the fate of 218 coal blocks allocation held as illegal by it while stating that about 40 blocks are operational and another six are ready to produce 50 million tonnes coal in the current year.

The affidavit filed by the Ministry of Coal incorporated the statements made by the Attorney General Mukul Rohtagi on September 1 that the Centre has "no objection" to the cancellation of allocations declared as illegal by the apex court and was also not insisting on any particular course of action.

Giving details as directed by the Court about the 40 producing blocks and six likely to come under production during the year 2014-15, the affidavit said they "are estimated to produce about 50 million tonnes of coal in the current year."

The ministry placed before it the gist of information about mining lease, commencement of production and linked End-Use Production (EUP) investment received from allocatees of these 40 productional coal mines and six on verge of production.

Out of 40 functional mines, two are allocated to an Ultra Mega Power Project (UMPP), which has not been declared as illegal by August 25 judgement, it said.

Further, the affidavit said the six coal blocks which are likely to come under production were determined by the Coal Controller's Organization (CCO), as they have received mine opening permission under Rule 9 of the Colliery Control Rules, 2004 (framed under MMDR ACT, 1957), which is the final step towards opening of the mines.

The ministry, which gave details of information of 15 lignite blocks received from the allocatees, also stated some of the hurdles it was facing as a result of the apex court judgement and sought suitable directions.

It said the numbers of allocatees have acquired title of the land in respect of coal blocks which were allocated and now are held as illegal and on re-allocation those previous allocatees be directed to "re-convey" the land to Central government.

"Upon cancellation of the coal block, the title of the land would still remain with the allocatee. In the event of subsequent grant of the coal block, it may not be possible for the grantee to obtain title of the land from the earlier owner," it said.

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