Bank of India eyeing acquisition in Indonesia

5th January 2005: Bank of India is planning to acquire a bank in Indonesia, its chairman M Venugopalan said today. The bank also plans to raise more than one billion rupees through a public issue of shares in July, he added. Venugopalan also said that the net profit for the financial year to March 2005 will be lower than the previous year.

Taxman wants to inspect M&As

4th January 2004: M&A proposals should be examined and approved by the IT authorities. The income-tax department wants a bigger role in corporate mergers and acquisitions (M&As). It has suggested to the government that all corporate and banking M&A should be routed through the department. In other words, M&A proposals should be vetted and approved by the income-tax authorities before they are put up for shareholder approval and, subsequently, for the approval of high courts. The income-tax department has recommended that either the Companies Act should be amended or legal provisions should be clearly laid down, making it mandatory for the companies and banks opting for mergers or amalgamations to get clearance from the income-tax department.

According to sources, banks and companies pay hefty taxes, depending on their profits. While the exemptions accorded to M&A cases are meant for loss-making units, most of the M&As is designed to take advantage of tax benefits. In some of the cases, M&A activity even amounts to clear tax evasion, income-tax officials contend. The department wants to plug this hole. The issue is significant against the backdrop of the big mergers that are being planned in the public sector banking sector. Income-tax department sources said once M&A deals were cleared, the tax department could hardly act even if it had a valid tax claim. Moving court was no solution as it took time, said a department official.

Eveready to merge Guindy plant with another TN unit

30th December 2004: Eveready Industries India Ltd has decided to merge its battery-making Guindy plant with the bigger Tiruvottiyar plant in Tamil Nadu. The company is also planning to build an office complex in Chennai once the plant is relocated. So far, the company operated two plants in Tamil Nadu. While the plant at Tiruvottiyur high road in north Chennai was set up in 1952 and has an output of about 210 million batteries per annum, the other at industrial estate in Guindy, near Chennai airport, was established in 1971 and currently has a production capacity of 240 million batteries per annum.