Financial Briefing
Capital-indexed bond subscription opensThe capital-indexed bond, which opened for subscription on Monday provides a superior post-tax return compared to other government securities of comparable maturity, according to a report by I-Sec. The bond offers a fixed coupon of six per cent, with indexation on the principal at the time of redemption. Care assigns PR1+ to Grasim Industries' CP plan Care has assigned a PR1+ rating to the Rs 35 crore commercial paper programme of Grasim Industries. The rating indicates the instrument is of a superior quality. Graism Industuries is the AV Birla flagship. Icra downgrades Paam Pharma's NCD plan Icra has downgraded the NCD rating of Paam Pharmaceuticals Ltd from LA to LC indicating substantial risk. The revised rating indicates there are inherent elements of risk and timely servicing of debts. IDBI clarifies IDBI has clarified its position with regard to the assets leased out to REPL Engineering Ltd and the depreciation claimed
on it as reported by the Financial Express on December 24, 1997. "The correct position is that REPL, an assisted unit of IDBI, was granted lease assistance of Rs 347.20 lakh in December 1992 for acquisition of 16 items of specialised equipment for manufacturing heat shrinkable products of cable jointing. After due compliance of the various formalities, disbursement of the assistance was made in four instalments by crediting supplier's account with Bank of Baroda. Bulk of the assistance has been repaid by the company and the present outstanding is Rs 86.02 lakh," said an IDBI clarification. It further stated that "an IDBI officer, who visited REPL and physically verified the position of leased assets had reported that all the equipment were in working condition excepting few items, which were not being utilised in its fabrication programmes at that point of time and were found in dismantled condition." "The income tax department had raised certain objections on the aforesaid transaction early this
year and the disallowed depreciation in the assessment year 1994-95. IDBI has gone on appeal against the said order," said an IDBI note.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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