TCS CEO Chandrasekaran just got a 50% salary hike to Rs 15 lakh/month

First Post :PTI :Jun 6, 2013

Subject to approval by shareholders, Tata Consultancy Services has raised the basic pay of its CEO and MD N Chandrasekaran by 50 percent to Rs 15 lkah a month, effective from April 2014. Including benefits and bonuses, TCS CEO was paid around Rs 12 crore in the year to 31 March 2013.

Chandrasekaran, who became chief executive in October 2009, had received a pay hike of about 40 percent to Rs 10 lakh in July 2011 earlier.

In a recent filing to stock exchanges, the software company said, “The Board has revised the maximum limit of salary of N Chandrasekaran from Rs 10 lakh per month to Rs 15 lakh per month, with effect from April 1, 2014, for the remainder of the tenure of his appointment i.E. Up to October 5, 2014, with proportionate increase in the benefits related to his salary.”

Including benefits and bonuses, TCS CEO was paid around Rs 12 crore in the year to 31 March 2013

Taking into consideration increased business activities of TCS and the responsibilities cast on Chandrasekaran, the board has revised the maximum limit of salary, the company added.
The company’s annual general meeting is scheduled for June 28.

During his tenure as the chief executive since October 2009, the company has grown at a compounded annual rate of 21 percent. It posted a turnover of USD 11.6 billion last fiscal.

“At the Annual General Meeting of the company held on July 1, 2011, the members had approved the revision in terms of remuneration of N Chandrasekaran with the maximum amount of salary of Rs 10 lakh per month,” the filing added.

TCS reported 22 percent jump in net profit at Rs 3,596.9 crore for January-March quarter, meeting market expectations.

The company has also expressed the confidence of beating Nasscom estimate of 12-14 percent industry growth in 2013-14.

PF withdrawal not taxable after 5years of continuous service

Live Mint :Parizad Sirwalla :5 June 2013

As per domestic tax laws, withdrawal of PF is taxed if withdrawn before continuous service of 5 years

As per domestic tax laws, withdrawal of provident fund (PF) is taxable if it is withdrawn without rendering continuous services for five years or more with the employer. On change in employment in the past, if the accumulated PF balance has been transferred to the PF account of the current employer, then the period of previous employment is also included as part of continuous service.

If a person has rendered total continuous service for less than five years with the current and previous employers, if any, and transferred PF balance from the account maintained by the previous employer to the current employer, then the entire PF withdrawn will be taxed in the year of receipt of the accumulated PF. The total of employer’s contribution plus interest thereon, which was not been taxed earlier, will be taxed as salary. Further, the amount of tax benefit claimed under section 80C on account of your contribution shall be taxed, subject to a cap of Rs.1 lakh per fiscal if this was considered as exempt from tax in the earlier relevant fiscals. The interest on your own contribution shall be taxed as “income from other sources”. The tax rate would depend upon the applicable income tax slab.

Reliance Industries - Highlights of the AGM:

Reliance Industries chairman Mukesh Ambani today announced a Rs 1.5 lakh investment plan in various ventures over the next three years, adding that globally there are opportunities to participate  in oil and gas sectors.

 He, however, cautioned that the oil and gas sector remains “tough’.

“RIL has embarked on the largest investment plan in its history. RIL is making significant investments in all five businesses simultaneously. We are also investing in scale in all out major manufacturing sites fior the first time in our history.” Ambani told investors at its 39th annual general meeting in Mumbai today.

RIL not only clocked the highest ever turnover last fiscal but continues to be a debt free company on a net basis. RIL is also  company is scouting for opportunities across the globe.Even as the global economy is facing a major challenge, margins in core businesses are on the upswing, he said. Ambani said that most of the company’s expansion will come when global economy recovers.

He has also announced the finalisation of partnerships for the launch of RIL’s 4G services. He said the company’s telecom arm would make aggressive launches this year. Reliance Industries will also  increase staff in its telecommunications business unit to 10,000 next year from 3,000 currently. The unit, Reliance Jio Infocomm, is the only company to have nationwide permits for 4G broadband services, but is yet to start commercial services.

Ambani also welcomed the government’s move on fuel pricing.

Highlights of the AGM:

•Reliance accounts for 14 percent of India’s exports
•Reliance highest tax payer in the country as it contributes 4.8% of India’s total indirect tax revenues
•Co returned Rs 3360 crore to shareholders via buyback
• RIL enjoys highest rating for domestic rating and continues to remain debt free on a net basis
• Most of company’s expansion plans depends on global recovery
• India’s petrochem demand per capita remains low at 26 killos  vs global average of 88 killos
•margins in core businesses are on upswing
• Petrochem capacity to expand from 15 mtpa to 25 mtpa, projects under implementation
• Silvassa petrochem plant to be operational this year
• Paraxylene capacity at Jamnagar will be doubled
•Gross refining margins improved to $9.2 per barrel from $8.6 last year
• Throughput at Jamnagar refinery 68.5 million tonne, capacity utilisation 110 percent
• Investment in manufacturing and retail will spur growth
• East coast full of geological challenges in sustaining production
• KG-d6 oil and gas output substituted $30 billion of imports
• Have doubled revenues, ebitda from US shale gas
• Recent gas discovery 2-km below currently producing gas field in KG-D6 block, has potential to significantly add to resource base
• production of shale gas will be one-third of aggregate production this year
• RIL aiming to begin producing from Sohagpur CBM blocks in Madhya Pradesh in 2015
• RIL’s retail business has achieved cash breakeven
•Reliance Retail added 184 new stores across formats. RIL now operates 1500 stores through India
• Retail business has crossed revenue of Rs 10,000 cr
• Retail is a value generator for shareholders
• Strong belief Reliance Jio will transform Indian’s life. Ambani sees a new India and is bullish on the digital space
• Reliance Jio has finalised key vendors for launch of 4G services
• Ambani’s Reliance Jio to make aggressive launches this year

Reliance  has been under pressure from investors over its slowing gas business and its drive into consumer-focused sectors such as telecoms and retail.

Shares in Reliance Industries were trading down 1.4 percent at Rs 791.40 as Ambani did not spell out any concrete plans about its 4G rollout.

First Post :FP Staff Jun 6, 2013

Disclosure: The Reliance Group has funded the promoter of  Network18, which publishes Firstpost

No leniency for banks that are flouting norms: FinMin official

The Finance Ministry today asserted there is no question of showing any flexibility or giving benefit of doubt to banks found to have indulged in irregularities following an expose by a portal.

MUMBAI: The Finance Ministry today asserted there is no question of showing any flexibility or giving benefit of doubt to banks found to have indulged in irregularities following an expose by a portal. 

"There is absolutely no scope for benefit of doubt to be given to anybody who violates fundamentals like KYC norms and cash transaction limits, does not report suspicious transactions, advise customers to make Rs 49,999 transactions (to avoid quoting PAN and their reporting), and a dozen of them in one day, there is absolutely no scope for that. This is absolutely not done," Financial Services Secretary Rajiv Takru said here. 

Takru said the extent of irregularities, which came to light following the expose by portal Cobrapost, is something which causes him "great trouble". 

Late February, the investigative portal had come out with sting operations purportedly showing the readiness of executives at top private banks -- ICICI BankHDFC Bank and Axis Bank -- in not following standard know your customer (KYC) guidelines. 

This resulted in a probe by the RBI, which revealed a slew of discrepancies in the banks' functioning. 

The portal later came up with another set of sting operations showing officials at 20 other lenders indulging in similar practices. 

In the past, officials from the Reserve Bank have called them "minor aberrations" which need to be corrected. 

"There is no point in saying that these are minor aberrations here and there. The financial sector is founded on the principle of probity and trust. There is no scope whatsoever for any flexibility, any adaptability," Takru said. 

Takru said one of the deterrents for banks might be raising the Rs 1 crore fine currently levied for violation of certain norms. He suggested hiking the amount to Rs 500 crore. 

"The small fine is not the issue, the graveness of the offence is the issue," said the Secretary, who was here for a banking summit. 

Yesterday, RBI Governor D Subbarao had told that the penalties for domestic banks are "peanuts" and he wants the Government to hike it to "reasonable limits".