FICCI demands delay in implementation of IFRS

NEW DELHI: Industry body FICCI has asked the government to delay implementation of international accounting norms, IFRS, beyond April 2011, saying the deadline is "highly unworkable" and "unfair".

In a representation to the Corporate Affairs Ministry , FICCI has said that the transition should be brought in when companies are better equipped to deal with the new envisaged accounting concepts and standards.

"Industry (should) be provided at least one year's preparatory time from the date when the harmonised, notified and legislated converged accounting standards and other related matters are in place," FICCI said.

It pointed out that at the current juncture, global standards themselves are up for revision.

Listing the changes, FICCI said that financial instruments, like derivatives, loans, and investments, accounting and reporting framework, accounting for income taxes, revenue recognition, and accounting for employee benefits, are undergoing a major revamp.

FICCI noted that the new Companies Bill is pending finalisation, and so is the Draft Tax Code.

Further, it said that there seems to be some thinking on asking companies to prepare dual set of financial statements, one as per erstwhile Indian GAAP and another as per IFRS.

"This would lead to immense confusion and increase the hardship and cost for these companies," it said.

According to the roadmap laid out by the MCA , companies with a networth of over Rs 1,000 crore will have to prepare their account books as per the IFRS by April 2011.

Further, while scheduled commercial banks and urban cooperative banks will adopt it from April 1, 2013, all insurance companies will convert their opening balance sheets with IFRS from April 2012, while large listed non-banking finance companies (NBFCs), will converge their opening books of accounts with IFRS norms from April 1, 2013.

Lakshya Media bags ad rights at Delhi Airport's T3

NEW DELHI: A private media organisation, which owns exclusive advertising rights at airports in Colombo and Hyderabad , has been awarded these rights at the new Terminal-3 at Delhi airport .

Laqshya Media has been granted rights for promotions at T3, which is the eighth largest airport terminal of the world, a company statement said here.

It quoted company CEO Indrajit Sen as saying that the Laqshya Media understood how flyers move through airport networks and the advertising they engage with.

"Having profiled distinct flyer groups to identify mood, mindset, activities, dwell time and media engagement, we will provide advertisers with highly targeted opportunities".

The marketing campaigns will primarily target business travellers and professionals by engaging them at a time and place where they have the time to truly experience the product, Sen said.

T3 has outlets of most of the leading global luxury brands in its 20,000 square feet duty-free area, selling a wide range of items -- from chocolates and confectionery to liquor, tobacco, confectionery, perfumes, cosmetics and destination products.

Laqshya owns exclusive advertising rights at Rajiv Gandhi International Airport in Hyderabad) and the Bandaranaike International Airport at Colombo, the statement added.

BHEL eyes overseas markets for exports

TIRUCHIRAPALLI: PSU power equipment manufacturer BHEL is eyeing overseas markets for exports, a top company official today said.

"BHEL is looking at the markets of South Africa, Zambia, Belarus, Indonesia, Libya and Bangladesh", Executive Director of BHEL Trichy Complex A V Krishnan told reporters here.

"We have participated in the tenders," he said, adding that Indonesia was a big market.

To a query, he said that BHEL was looking at inorganic and organic growth.

"We do not want to enter into any JV with any other company for boiler manufacturing," he said.

Krishnan said that the Trichy complex of BHEL, which manufactures boilers, was eyeing a turnover of Rs 12,765 crore during the current fiscal, and Rs 16,000 crore by 2011-12.

He said that BHEL's Trichy complex was currently undergoing a capital expenditure of Rs 750 crore.

Krishnan said that the third boiler unit would be ready by March 2012, adding that annual capacity would rise to 15,000 MW at Trichy from 10,000 MW at present.

Overall, BHEL's total annual capacity would rise to 20,000 MW by 2012, the balance 5000 MW of which would come from solar, hydel, and nuclear. Besides this, BHEL was also coming up with a new piping plant at Thirumiyam near Trichy and upgrading its steel tube manufacturing plant.

Krishnan said that BHEL was also outsourcing some components to reduce costs and importing non-critical items from China

L&T's subsidiary bags Rs.2,503 crore-worth orders

NEW DELHI: Construction and engineering major Larsen & Toubro's (L&T) subsidiary Electrical and Gulf Projects Operating Company has bagged orders worth Rs.2,503 crore for transmission, substation and railway construction projects during the third quarter of 2010-11.

"Electrical & Gulf Projects Operating Company (E&GP OC) has secured orders aggregating to Rs.2,503 crore from transmission, substation and railway construction projects in the domestic and international markets during the third quarter of 2010-11," the company said in a regulatory filling.

According to the filling, the company secured orders worth Rs.1,516 crore in the domestic markets, which included projects for laying down of transmission lines, manufacturing of electrical equipment used in energy generation and railway construction activity.

The company's international segment bagged Rs.987 crore in the middle east region for seven substation projects and 153 km of transmission line projects.

The company's shares closed at Rs.1,979.05 at the Bombay Stock Exchange (BSE), 0.35 per cent higher than Thursday

After Dabur, Pepsi faces raids in Nepal

KATHMANDU: Four days after Dabur India’s factory in Nepal was raided by anti-corruption watchdogs over allegations of manufacturing irregularities , another Indian multinational’s corporate office and factory in Kathmandu were raided by revenue officials .

Varun Beverages , the bottler of Pepsi and related soft drinks in India and Nepal, and an associate company of India’s RKJ Group chaired by Ravi Jaipuria, was raided Friday by the newly-formed flying squads under the finance ministry that have begun scrutinising corporate houses for evasion of VAT (Value-added Tax), excise duty and other taxes.

Along with Varun, its subsidiary company and the distributor of Budweiser Beer in Nepal, Arctic International, was also raided. However, the raids failed to unearth any incriminating evidence.

“Our factory in Sinamangal and corporate office in Baluwatar were raided Friday,” Surajan De, CEO of Varun, said. “The factory was given a clean chit and is functioning as usual. Though the search at the corporate office continued till late at night, the squad could not find anything incriminatory.”

De said that since raids had started on many other companies, Varun was not taking it as an untoward incident. However, given the recent campaign against Indian multinationals, that led to the raid by the Commission of Investigation of Abuse of Authority on the godown of Dabur Nepal Monday, Indian investors were watching the developments closely to see whether it was a routine move or an attack targeting Indian companies.

Last year, Varun and another of its subsidiary companies, Devyani International, opened the first international fast-food chain outlets in Nepal with the inauguration of Pizza Hut and KFC in the capital. But just a month later, their plans to take the chains to Pokhara city and other locations had to be put on hold after labour unrest fomented by the opposition Maoist party’s trade union.

DTH industry to rev up as subscribers rise, costs ease

MUMBAI: After years of depressed growth, the direct-to-home industry is likely to improve over the next two years as costs decline, companies aggressively increase their subscriber base and the market leader nears breakeven.

However, profits at loss-making DTH providers, bogged down by high subscriber acquisition costs, selling and marketing expenses and low revenue per user, might take longer, analysts said.

"Like in a lot of businesses, the first round of economic destruction has happened, the business has bled, but from here on, the industry will take off," IDFC Securities analyst Nikhil Vora said.

Salil Kapoor, chief operating officer at Dish TV, said the Indian DTH industry should have 33 million subscribers by the end of this fiscal and expects it to be the largest globally, overtaking the U.S., much earlier than analysts' projections of 2012.

The historically high subscriber acquisition costs -- cost the DTH provider records for each subscriber -- have stabilised over the last one year.

Subscriber acquisition costs, which were initially as high as 6,000 rupees, have now stabilised at somewhere between 3,000 rupees and 4,000 rupees, Anil Khera, chief executive at Videocon D2H, a unit of Videocon Industries , said.

Subscriber acquisition costs should fall by 20 per cent in the next two years, an analyst, who did not wish to be named, said.

"Subscriber acquisition costs should definitely come down because of stabilisation in price war and reduction in the price of set-top boxes," the analyst added.

Dish TV launched its DTH services in 2005, becoming the first entrant in the Indian market. Tata Sky, Sun TV Network's Sun Direct, Reliance Big TV, Bharti Airtel's Airtel Digital TV and Videocon D2H jumped in later, setting off a price war to gain subscribers in an analog-dominated market.

Prices of set-top boxes, a large chunk of the subscriber acquisition cost, have dropped considerably over the years, especially in markets such as China and Taiwan. Service providers such as Videocon D2H are also manufacturing their own set-top boxes to cut down on costs and avoid import duty.

Additionally, the rupee's appreciation against the dollar is also pushing the cost down. The rupee has appreciated 3.2 per cent against the dollar so far this year.

MUTED ARPUs COULD EDGE UP

Cut-throat competition has so far kept average revenue per user (ARPU) subdued, but going forward DTH companies could see ARPU rising to 225-260 rupees in the next three years from the current 140-150 rupees, Vora said.

Changes in the content sharing agreements between broadcasters and service providers are also helping DTH companies reduce costs to a certain extent.

Earlier, the broadcasters' fee would change depending on the DTH companies' total subscriber pool, but of late, many DTH providers have worked out fixed-pay agreements with broadcasters.

Dish TV, which recently crossed the 9-million-subscriber mark, is leading the way to recovery. The company is aiming at profitability in the coming months and analysts expect the firm to break even in calendar year 2011.

"Others should be able to breakeven by FY13 or FY14 because you need to have more subscribers to breakeven faster," K.R. Choksey analyst Rohit Maheshwari said

Sony India eyes 54% sales growth to Rs 5700 cr this fiscal

NEW DELHI: Consumer electronics giant Sony India today said it expects to witness a 54 per cent jump in sales to Rs 5,700 crore this fiscal on the back of its enhanced distribution network, aggressive marketing campaign and newly launched products.

The company said it clocked sales worth Rs 2,600 crore in the first half of the 2010-11 financial year, a 46 per cent increase compared to the same period last fiscal.

"Sony aims to clock a turnover of Rs 5,700 crore this financial year, which would be a 54 per cent increase over the last fiscal," the company said in a statement. Sony India had reported sales worth Rs 3,700 crore last fiscal.

The key strategic pillars of growth include sales channel expansion, service operation enhancement, aggressive brand promotion and introduction of an innovative product line-up, it said.

The company said a major chunk of its overall sales revenue during the first six months of the current fiscal came from its 'Bravia' range of televisions and 'Vaio' computers and laptops. It also witnessed a 54 per cent surge in sales during the festive season this year vis-a-vis the year-ago period.

"All key categories of Sony have achieved very aggressive growth figures, with 'Bravia' registering 65 per cent growth from corresponding period last year, 'Vaio' growing by 160 per cent and digital imaging ('Cyber-shot' and 'Handycam') by 20 per cent," the firm said.

It also attributed the robust growth to expansion of its distribution network to 4,000 channels in the first half of FY'11, compared to 3,000 at the end of the previous financial year.

"India is amongst the top 10 priority markets for Sony and we eagerly look forward to expand our operations here... We aim to attain No 1 position in terms of market share, brand value and customer satisfaction in the Indian market," Sony India Managing Director Masaru Tamagawa said.

Sony also undertook an aggressive advertising campaign this year, which featured Bollywood superstar Kareena Kapoor in its 'Go Vivid' campaign to promote the Vaio range of laptops and computers and Deepika Padukone for the 'Superzoom' campaign promoting its Cyber-shot range of digital cameras

NTC raises Rs 1.46 bn via land auction

MUMBAI: India's state-run National Textile Corporation has raised 1.46 billion rupees ($32.46 million) by selling two of its surplus mill lands in the western Indian city of Gujarat via e-auctions.

NTC had fixed a reserve price of 687.4 million rupees for both the assets.

Gujarat-based firm Ahmedabad Advance Mills Ltd paid 1.18 billion rupees for a 33,222 sq meters plot while Lok Prakashan paid 412.7 million rupees for a 61,040 sq meters plot, the firm said in a statement to the exchange.

It has so far raised 19.79 billion rupees via two auctions earlier.

NTC, which has about 1,300 acres of land in various cities across India, is modernising 24 mills at a total estimated cost of 91.02 billion rupees.

An improvement in demand for textile products and apparel has prompted the federal government to spend more on reviving and modernising dormant textile mills

After Honda split, Munjals to focus on exports

NEW DELHI: Hero Honda managing director Pawan Kumar Munjal has told vendors that exports will get sharp focus after the formal split with Japanese partner Honda Motor Company. “Work hard. We are planning to build a new brand and market it internationally," Munjal told vendors on Tuesday.

Exports account for a meagre 2.6% of Hero Honda's production of 34.48 lakh units as the 26-yearold joint venture put restriction on entry into key overseas markets. The Hero group will compete with partner Honda in global markets once the definitive pact to dissolve the partnership is signed in four weeks. A Hero Honda spokesperson declined comment.

Executives from key suppliers such as Rico Auto, Motherson Sumi, Sandhar Technologies, Minda Industries , Sunbeam Auto, Lumax Industries , Omax, Excide Batteries, Sriram Pistons, MRF Tyres, and Falcon Tyres attended the first vendors' conference after the announcement of split. The Munjals will buy 26% stake from Honda, taking their total stake in Hero Honda to 52%.

The Hero Group will export bikes and scooters under its new global 'Hero' brand in places such as Latin America, Africa, East Europe and Asia. It now sells in countries such as Nepal, Bhutan, Bangladesh, and Myanmar.

"The company is yet to harvest its full potential of 5.4 million capacity. Hero Honda aims to be a major players in exports," said a Delhi-based supplier.

"Exports to emerging markets like Africa and Latin America are more lucrative in terms of margins, but would be a challenge to find space in the crowded South East Asia which is one of the largest block in terms of sales. Brand visibility and product positioning would be a challenge for the Hero Group," Mahantesh Sabarad, a Mumbai-based analyst at Fortune Equity said.

TVS Motors December sales up 42% y-o-y

MUMBAI: TVS Motor Co Ltd , India's No. 3 two-wheeler maker, said on Saturday total sales for December rose 42 percent to 171,790 units.

Total two-wheeler sales alone for the month stood at 168,359 units from 119,701 units a year ago, it said