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Far-reaching ruling
The ruling by the Income-Tax Appellate Tribunal (ITAT) that the protection money paid by a builder was an allowable expenditure has far reaching implications and should be widely welcomed in a situation where manufacturers and businessmen find it expedient to pay protection money rather than suffer heavy losses. While this, obviously, is an indictment of the law and order machinery generally, surrendering to the harsh ground realities in this manner is to be preferred to the kind of embarrassment the tea industry in Assam has been subjected to for long years.
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Exercise right option
The SEBI chairman has in recent utterances stated that stock options to employees at a discount is a step in the right direction. This line of thought is definitely the need of the hour, atleast in the Indian context. It would indeed be better to issue the stock options which would help inculcate an attitudinal change in the workforce, rather than face some of the dire consequences.
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Will Reserve Bank's prescription work?
In its effort to contain the Asian contagion from touching the shores of the subcontinent, the Reserve Bank of India has finally swung in action using its multi-edged brahmastra to stem destabilising speculation in the forex market and stabilise the rupee. The increase in the bank rate from 9% to 11% and raising the CRR pushed the cost of funds up in the short term money market and did the trick of pulling up the sliding rupee.
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End of the honeymoon with FIIs
Foreign institutional investment, it has been proposed, should be subjected to a six-month lock-in period. This may or may not be a good idea. But the context in which it has been mooted is important. The background is the east Asian currency crisis, which has thrown up an awesome truth: every country is vulnerable to the flu, and strong economic fundamentals are no prophylactic.
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In death do they serve a purpose - for parties at least
Mutyalapati Sivaiha, who swallowed a bottle of pesticide recently, could well be chief minister and TDP president N Chandrababu Naidu's political nemesis. Though he survived the attempt, what is shocking and significant is that the debt ridden cotton farmer used none other than Naidu's election meeting at Markapur in Prakasam district to resort to the extreme step after handing over a memorandum to the chief minister on his plight.
The Index -- Garware Polyester
Garware Polyester's proposal to hike its polyester film capacity from 40,000 tpa to 1,00,000 tpa is highly ambitious. First, there is glut in the domestic market as the users like Flex Industries have set up capacities in excess of their requirements. This is amply reflected in production figures of the company which have increased from 11,186 tonnes in 1994 to 13,933 tonnes in 1996, a growth of just 8.5 per cent.
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