PLANTATIONS: A QUESTION OF Rs1000 CRORE
Article Abstract:
About 3,599 plantation companies, registered with the Registrar of Companies (ROC) in India, are estimated to have raised Rs10,000 crore from investors. Fabulous returns had been promised by the plantation companies. The returns offered by these companies have made tax-free. The absence of any monitoring authority encouraged these companies. A few schemes of these companies offered returns of 24-30 percent through post-dated cheques. The schemes commenced with negative cash flows. The promoters also did not have the required expertise or experience to carry on the business. To strengthen the regulatory framework, the `securities contracts' bill was introduced to empower the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) to deal with these companies. According to prevalent SEBI guidelines, no company shall raise funds without a rating by the credit rating agencies. About 21 companies have obtained ratings which are below the investment grade. The genuine plantation companies face the problem of liquidity. Plantations have to be nursed to ensure adequate returns. The present disclosure standards are lax and need to be improved with strict regulation. The viability of a project also needs to be checked before investments are made in the schemes of plantation companies. (uh)
Comment:
India: Securities contracts bill has been introduced to empower SEBI & RBI to deal w/ cos who have raised funds w/ no rating
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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USHA MICROPROCESS CONTROLS
Article Abstract:
The sick Usha Microprocess Controls has been referred for dissolution after being under the BIFR net for some time. But the company has already received a stay order from the Delhi High Court against the dissolution though it was approved by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). In 1996-97, the company recorded total income of Rs0.08 crore and incurred loss of Rs1.71 crore with a higher interest component of Rs1.35 crore. (gsh)
Comment:
Is referred for dissolution after being under BIFR net for some time.
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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YOGI PHARMACY: A PSEUDO YOGI
Article Abstract:
Yogi Pharmacy Ltd, a producer of ayurvedic medicines and formulations, has been suspended from trading on the Delhi Stock Exchange for having violated listing agreements. Its net sales decreased to Rs7.69 crore in 1996-97 against Rs18.02 crore in 1995-96. It showed a net loss of Rs0.03 crore in 1996-97 against a net profit of Rs1.08 crore in 1995-96. The company's scrip was last traded in December 1997 at Rs2.30 on the Bombay Stock Exchange. (khr)
Comment:
Has been suspended from trading on the Delhi Stock Exchange for having violated listing agreements
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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