• Up to 20% reduction in call rates
• Select sectors may get more seasonal discount on interest
• ICAI tightens auditing norms
• Share transfer agents under SEBI scanner
• SC issues notice to British Airways
• United Spirits promoters pledge 32.82%
• TRAI has asked mobile service providers to slash the fee they pay each other for moving calls between networks by a third STD as a result of which local calls from cellphones will become up to 20% cheaper from April 1. The lower tariff will also apply to 3G services when they are launched. However, calls made to India from overseas will cost a bit more (less than a cent/minute) from next month as TRAI has allowed Indian telecom companies to charge foreign operators up to 33% more for terminating overseas calls in the country. (ET)
• According to sources, Govt may consider a further interest subsidy on loans to co.s in select sectors as part of moves to engineer their revival by getting bank credit flowing into them. The committee of secretaries (CoS) led by Cabinet secretary KM Chandrashekhar will hold a series of meetings with public sector bank chiefs next week to identify sectors where banks are reluctant to provide credit because of high risk of default. Sectors which could gain most from the proposed govt intervention include gems & jewellery, automobile components and some categories of textiles, which are most exposed to the downturn in global trade. Centre will seek Election Commission’s permission to provide the additional incentives, as the model code of conduct in place doesn’t allow govt to make a major policy announcement. (ET)
• The Institute of Chartered Accountants of India (ICAI) has issued two revised accounting standards — SA 500 and SA 720 —to enhance the quality of audits. The SA 500 will become effective from April 1, 2009 and lays down norms for obtaining and evaluating audit evidence, on which the final audit findings are based. The second standard — SA 720 —a first of its kind standard to be issued by ICAI has introduced guidelines for auditors to vet annual reports and other documents. It requires the auditor to read such other information to identify any material inconsistencies vis-a-vis the audited financial statements since these can undermine the credibility of those financial statements and the audit report. (BS)
• According to sources, Share transfer agents (STAs) have come under SEBI scanner after SEBI received several complaints about their misconduct and after it was found that some of them were continuing their operations even after their registrations expired. SEBI has dragged Calcutta-based AMI Computers to court for fraudulently operating as an STA. AMI Computers was banned by SEBI in October 2007 on charges of operating as an STA even after the required registration had expired for over ayear. Criminal proceedings against AMI Computers and its directors Ratan Kumar Mishra, Kundal Mal Jain, V K Jain, Kundan Mal Banthia and G S Prasad were initiated by SEBI on persistent efforts by Right to Information Act (RTI) activist Satish Chaudhary. (BS)
• Supreme Court has issued notice to the British Airways Plc. on a petition filed by the income-tax department stating that the airline failed to deduct tax at source on various allowances paid to its employees. Delhi high court had earlier dismissed the department’s pleas on the ground that the proceedings were initiated against the assessee (British Airways) beyond a reasonable period of four years. (Mint)
• United Spirits has said that its promoters have pledged over 3.28 crore shares, representing 32.82 % stake in the company, for an undisclosed amount. The promoter group comprises Vijay Mallya, United Breweries (Holdings), Kingfisher Finvest India, Mallya Private, Devi Investments, Vittal Investments and Rossi & Associates Private, the company has told the Bombay Stock Exchange. Meanwhile, UB Group promoters have marginally revoked their pledged shares to the tune of 1.09 %. (BS)
