NEW DELHI:
This could spell double trouble for tax-evading companies.
The ministry of corporate affairs (MCA) has sought details from the
Income-Tax
department of companies against whom tax-evasion charges have been
framed. The ministry feels that scanning those records could unearth
cases of violation of company law.
While tax evasion can be settled through payment of penalty, many
offences under company law are punishable as imprisonment for top
managers.
A proposal to establish a system wherein the ministry is kept updated
on corporate I-T defaults is under consideration. Officials say the
move will require setting up an information- sharing network between
the two departments. The idea is to leverage on the I-T department's
data network to identify defaulting companies, and then examine if
they have breached company law provisions.
Experts do find logic in the move as evasion of taxes often results in
distortion of numbers in the company's financial results, an activity
which constitutes an offence under the company law.
Many companies, on being caught evading taxes, pay the penalty to the
authorities and then shift the burden of it to their shareholders by
fudging their financial records. A recent instance is the case of
Mumbai-based Elder Pharma where the ministry procured details from the
I-T department to initiate action against the company.
The company, which is now being probed by the ministry's Serious Fraud
Investigation Office (SFIO) for altering its financial records, was
earlier caught evading taxes.
Officials feel that the proposal, if effectively implemented, could
lead to a reduction in the number of tax evasion in the long term.
While tax evaders in most cases shell out a penalty to move out of a
prosecution, officials feel the present move might deter them from
effecting similar offences
.
Company law provisions prescribe stricter punishment for offences, and in many cases carry an imprisonment for the offenders
courtesy: The Economic Times
wish you ALL and Your Family and your other busiess associates A HAPPY, and a PEACE FUL days to come
S.NARAYANASWAMY.D.Com (costing), B.Com, M.COM. AICWA. FCS., (Bachlor of Admn Laws) Dip in Business Management , Data Mgt , ERP
RASHTRA BHASHA PRAVEEN, HINDI SAHITHYA VISHARAD,
Ph:+91-044 32 42 84 02 , I
--- On Tue, 4/11/08, SUBRAMANIAN NARAYANASWAMY <snswa...@yahoo.co.in> wrote:
From: SUBRAMANIAN NARAYANASWAMY <snswa...@yahoo.co.in>
Subject: STRATEGY - ABHIMANYU , brain storming session - offing
To: "rao vi" <ra...@vijex.co.in>, "kalyanaraman V [PP ICWAI]" <compuca...@hotmail.com>, "VINEET K SAINI" <vineet...@rediff.com>, "RCM SIRC Om Prakash A" <omp...@gmail.com>, "kunal" <kunal.b...@gmail.com>, "sect acs" <secr...@icsi.edu>, "Neeraja" <neeraj...@gmail.com>, "Ramachandran Mahadevan" <ramacha...@yahoo.co.in>, "saravana sno" <sara...@rediffmail.com>, "avila1 BPO" <avila....@yahoo.com>, "avila EE" <pmgba...@hotmail.com>, "vikas chandra" <vika...@yahoo.com>, "laxmi AYN" <alaxm...@yahoo.co.in>, "RAVI AYN" <sra...@hotmail.com>, "krishnan lpg" <chenn...@yahoo.com>, "mast tech"
<mast...@satyam.net.in>, "madras1 broad1" <balaji...@yahoo.com>, krish....@indiatimes.com, "ramesh kumar bafna" <bafn...@gmail.com>, "mohan -- ramaswamy" <moh...@rediffmail.com>, "venkat hef" <venka...@hefindia.com>, "CMA.Siva Rama Krishna Srirangam" <ssr...@gmail.com>, "rama samy" <r...@cameoindia.com>, "durga ccm" <dp.an...@gmail.com>, "great meera" <gm...@yahoo.co.in>, "gobal atma" <ad...@globalply.in>, "kamlsh ramsh" <kam...@gmail.com>, "rajan ch1" <comt...@hotmail.com>, "Rajgop mand" <ndraj...@yahoo.com>, "sudesh" <sudes...@rediffmail.com>, "Rajes mun" <rmun...@gmail.com>, "aaykar google" <aaykar...@googlegroups.com>, "anand aud" <anand_b...@yahoo.com>, "nashiCAs google" <nash...@googlegroups.com>, cac...@googlegroups.com, Than...@yahoogroups.com, "Prakash PK" <p_k_p...@hotmail.com>, "vasu rox"
<va...@roxaane.com>, "vasuki hr" <va1...@yahoo.com>, "mushtq ahmd" <tro...@tromboo.com>, "CA yahoo" <Chartered_...@yahoogroups.com>, "vineet Cs" <cs_company...@yahoogroups.com>, "gopal ccm" <mgop...@gmail.com>, "gopal cma" <gopala....@gmail.com>, "raju cma" <p_raj...@vsnl.net>, "anraman ccm" <anr...@gmail.com>, "venta ccm" <gnv...@gmail.com>, "sarah icsi" <saraharo...@hotmail.com>, "snsingh maya" <sn_sin...@rediffmail.com>, "sreramulu sri" <p.sree...@gmail.com>, "CMA Santosh Puthran" <santosh...@managementaccountant.in>, "cma group" <CMA_...@yahoogroups.com>, "axn pra" <axnp...@rediffmail.com>, rb...@airtelmail.in, "somu" <somu...@gmail.com>, "bharat ia" <iam...@yahoo.co.in>, snswamy...@indiatimes.com
Date: Tuesday, 4 November, 2008, 3:07 AM
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DEAR ALL
PL READ the following
it seems , there is a roll play for you as well, in one way or other , to do something , or to mitigate something
in tamil
thunpam varum velayile siriyinge
enru valluvaru , solli vachhan , saringhe
-------------
are we ready
YOUR WELL WISHER
S.NARAYANASWAMY
EXIT STRATEGY
Abhimanyu's Progenies
Bhartendu Sood
The other day, while we were sitting over a cup of tea, the focus
shifted to the free fall of equities on the bourses. One of us
remarked, "We Indians are feeling hurt because we are the
descendants of Abhimanyu." Baffled, we asked him to elaborate. He
said, "Arjun's son Abhimanyu was a great warrior and fought a great
battle with Kauravas but was killed in the end because he entered
the chakravyuh without knowing how to come out of it. The condition
of Indians who dabble in equities is the same; they enter into the
market but don't know when to exit, unlike foreign investors, who
know when to enter and when to exit. Can't you see, they come, make
money and say goodbye when Sensex is at its peak and leave the
undesired and painful baggage for us to carry till such time the
market revives again, which is as uncertain as life and death."
There was truth in what he said. We Indians by nature are
hoarders, quick to acquire but loathe at parting with. I became
friendly with one Japanese engineer about 20 years ago while working
on a project. When he saw my suitcase packed with share
certificates, he was in splits. "These aren't for hoarding. Always
remember, these are like tiger cubs, if reared for too long they can
eat you too." When it comes to shares, we saw our elders only buying
and rarely selling. But at that time there were few companies and
with proven credentials. And our elders were frugal, restrained,
content and pragmatic in managing their finance portfolios,
qualities we lack. They would look at credit like an infectious
disease, whereas we are regularly motivated to take loans. Driven by
avarice, we continue to chase shares, prices of which had sometimes
already become ridiculously high. Then, instead of using our own
judgment in the face of the aforementioned virtues, we
listen to a
bunch of experts who, till six months ago, were saying that the best
was yet to come and expected the market to touch 25000. The same
experts are now saying that the worst is not yet over. The lesson is
that experts in this field are weathercocks who move with the wind.
Things are not as gloomy as they appear to be, nor are they as
bright as projected. We need to be circumspect to be in this
market.
wish you ALL and Your Family and your other busiess associates A HAPPY, and a PEACE FUL days to come
S.NARAYANASWAMY.D.Com (costing), B.Com, M.COM. AICWA. FCS., (Bachlor of Admn Laws) Dip in Business Management , Data Mgt , ERP
RASHTRA BHASHA PRAVEEN, HINDI SAHITHYA VISHARAD,
Ph:+91-044 32 42 84 02 ,
--- On Tue, 4/11/08, SUBRAMANIAN NARAYANASWAMY <snswa...@yahoo.co.in> wrote:
From: SUBRAMANIAN NARAYANASWAMY <snswa...@yahoo.co.in>
Subject: DO WE all have anything to offer in this juncture, brain storming session - offing
To: "rTuesday, 4 November, 2008, 2:38 AM
|
DEAR PROFESSIONALS
GOOD MORNING
pl read the following
do we have as a specialists and as a class , as such, any thing to offer for this kind of , things , ahead, for many
if so, are we ready , to address the same
what is our prepared ness
with kind regards
your WELL WISHER
S.NARAYANASWAMY
Global companies suffer as recession rears ugly head
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By Patrick Fitzgibbons and Mike Peacock
NEW YORK/LONDON (Reuters) -
Corporate results and outlooks worsened as government officials around the globe pressed efforts to bolster weakening economies, which claimed fresh victims from banks to retailers to manufacturers.
While use of the much-dreaded "R" word (recession) has been avoided by economists and government officials for the past months, officials acknowledged on Monday the severity of the current global crisis.
In Europe, the European Commission confirmed that the 15-nation euro zone was in a technical recession and economic growth would come to a virtual standstill next year, and called for coordinated action to prevent further collapse.
And in the United States, factory activity contracted sharply in October, falling to its lowest point in 26 years, according one widely watched index.
"Pretty grim. It means we're in a recession. It's as simple as that ... a pretty solid manufacturing recession," said Robert Macintosh, chief economist at Eaton Vance Corp. "The question is how long or deep is it going to be? Where is this group of economists that is charged with declaring a recession?
In addition, U.S. construction spending fell again in September on weaker private home building and public construction.
U.S. auto sales for October, expected to be lowest in two decades, began to trickle in at midday on Monday, with Ford Motor Co reporting a 30 percent drop in vehicle sales for the month.
In Jerusalem, Jeffrey Lacker, president of the Richmond Federal Reserve Bank, said the U.S. economy was contracting. Data last week showed it shrank at a 0.3 percent annual rate in the third quarter, its sharpest contraction in seven years.
"I think it's definitely a recession at this point. How deep, how steep and long it's going to be is uncertain," said Lacker, who will become a voting member of the Fed's interest rate-setting committee next year.
More evidence of troubles in the United States came from consumer electronics retailer Circuit City Inc, which said it is closing 155 stores and cutting jobs as liquidity problems deepened and vendors tightened credit terms.
While the economic upheaval continued to be the focus of markets worldwide, U.S. investors on Monday were bracing for Tuesday's U.S. presidential election.
COMPANY BY COMPANY
Company results continued to look gloomy.
French bank Societe Generale reported an 83.7 percent drop in third-quarter net profit.
Net profit fell to 183 million euros ($234 million) with losses from the collapse of U.S. bank Lehman Brothers and other writedowns costing it 1.208 billion euros in pre-tax income.
Germany's No. 2 bank, Commerzbank, said it would take an 8.2 billion euro capital injection from the state and another 15 billion to secure refinancing. It posted a third quarter net loss of 285 million euros.
Britain's top home lender, HBOS Plc, raised its hit from the value of risky assets and bad loans to more than 5 billion pounds ($8.14 billion) as takeover partner Lloyds TSB predicted a sharp profit fall.
Lloyds stepped in to buy HBOS in a government-brokered deal after HBOS was hit by the crisis and concerns about its exposure to Britain's weakening housing market.
In the United States, Midwest Banc Holdings Inc posted a $159.7 million third-quarter loss, and said it obtained preliminary approval to sell preferred stock to the the U.S. Treasury in return for $85.5 million of capital.
Washington, Berlin, Paris and London have all offered to inject capital into their banks to prevent systemic meltdown.
French Prime Minister Francois Fillon was quoted by Le Figaro newspaper as saying that if banks did not use the money to lend to businesses, then the government could take direct stakes in them, as Britain has.
The credit crunch, which stemmed from a collapse in the U.S. housing market, has prompted banks to severely reduce lending to each other, businesses and households for more than a year now.
Interbank lending rates fell, extending last week's decline, reflecting ongoing central bank efforts to add liquidity rather than banks lending to each other.
Banks deposited a record 280 billion euros with the European Central Bank on Monday rather than making it available to peers.
RECESSION PROMPTS STIMULUS
While trillions of dollars in bailouts may have averted a banking collapse, the economic outlook is grim, prompting governments to put together fiscal stimulus packages to ease a recession born of the worst financial crisis in 80 years.
"The horizon that this forecast offers is dark ... recession is a real risk," EU Monetary Affairs Commissioner Joaquin Almunia said after the European Commission forecast euro zone growth of just 0.1 percent next year.
A technical recession is defined as two successive quarters of contraction.
Official data supported Almunia's prognosis.
Euro zone manufacturing activity sank in October to a record low. The Markit Eurozone Purchasing Managers Index slumped to 41.1 -- the lowest in the survey's 11-year history.
Berlin aims to safeguard 1 million jobs with pump-priming measures to be agreed in cabinet on Wednesday, by spending more than 30 billion euros.
South Korea announced plans to pump an extra $11 billion into its economy next year. Finance Minister Kang Man-soo said economic growth could fall to its lowest in more than a decade without the stimulus, which will need approval by parliament.
Policymakers will gather again to plot their next moves.
Euro zone finance ministers meet in Brussels to discuss reform of institutions that manage the global financial market and bodies such as credit rating agencies, accounting rules-setters, banks and their management.
And finance chiefs from the "Group of 20" nations gather in Brazil later this week to prepare for a U.S.-hosted Nov. 15 summit of world leaders to chart a way out of the crisis.
RATE CUTS COMING
Central banks will also put their shoulders to the wheel.
Following rate cuts from the Fed, China and Japan last week, the European Central Bank, Britain and Australia are expected to cut interest rates by at least 50 basis points this week.
The efforts to buoy the world economy encouraged some investors to shop for bargains after world stock markets fell 20 percent in October, their worst month ever.
The MSCI index of stocks in the Asia-Pacific region outside Japan rose 5.9 percent, European shares were flat and U.S. stocks were slightly higher in afternoon trade.
wish you ALL and Your Family and your other busiess associates A HAPPY, and a PEACE FUL days to come
S.NARAYANASWAMY.D.Com (costing), B.Com, M.COM. AICWA. FCS., (Bachlor of Admn Laws) Dip in Business Management , Data Mgt , ERP
RASHTRA BHASHA PRAVEEN, HINDI SAHITHYA VISHARAD,
Ph:+91-044 32 42 84 02 , 93806 33209
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