Bizbits

Bizbits

WTO to probe auto policy
Geneva: The World Trade Organisation has set up a dispute settlement panel on Friday to investigate European Union complaints that certain measures under India's auto import policy violate free trade rules. The panel was established at a meeting of the Geneva-based WTO's Dispute Settlement Body (DSB), four months after another dispute settlement panel was set up following an identical complaint by the United States.

The EU says that India is in breach of WTO rules with its system requiring manufacturers of automobiles to sign a memorandum of understanding as a condition for obtaining licences to import automotive products that are subject to import restrictions. The same rules also require the companies to establish production facilities in India, to make a minimum investment and to export a certain amount of automotive products.

Sterlite Industries
MUMBAI: The Board of Sterlite Industries on Saturday approved the company's proposal to acquire 100 per cent of the equity capital of two copper mines in Australia for a cash consideration of up to $43.5 million. This is subject to final negotiations and all statutory approvals as may be necessary.

The company had appointed Ernst & Young to conduct a due diligence study which has been completed and the report has been submitted to the board, which the board has approved. The two mines in Australia will be 100 per cent subsidiaries of the company. The acquisition will be funded through internal accruals, the company today informed the BSE on this decision.

HOC downgraded
MUMBAI: State-owned Hindustan Organic Chemicals (HOC) has been downgraded by Crisil, the leading credit rating agency. It downgraded its Rs 100 crore non-convertible bonds and Rs 50 crore bonds from `BB+' to `C' indicating inadequate safety towards repayment of principal and interest.

The rating revision reflects the constraints on the debt servicing ability of the company due to a large loss of Rs 105 crore incurred in 1999-2000, continued stress on profitability, increase in gearing to 1.32 times and poor interest coverage ratio. The loss occurred due to provision for income and expense for previous years and higher discounts. The company reported a loss of Rs 13.7 crore for the first quarter of 2000-01.

Sarita Software
MUMBAI: Sarita Software & Industries, a 100% export oriented unit, has been selected by the Andhra Pradesh government for the `best export performance award' under the category `overall third and first in textile sector' for the year 1999-2000. The AP government instituted the award to encourage EOUs for more higher exports.

CFRS in 15 scrips
Mumbai: The Bombay Stock Exchange is to introduce the much awaited carry forward rolling settlement (CFRS) in 15 scrips identified by the SEBI from November 21. The scrips are Aftek Infosys, BFL Software, Chambal Fert, Essar Steel, GAIL, Global Trust Bank, IndusInd Bank, Kotak Mahindra, Lupin Lab, Morepen Lab, Orchid Chemicals, Pentafour Communications, Shri Adhikari Brothers, Sundaram Clayton and Visual Technologies.

Some of the salient fatures are: CFRS session would beheld on the day following the trading day of any settlement, that is for transactions done on Monday (called T day, CFRS session would be held on Tuesday T+1 day). This session would be concurrent with the normal trading session. The system would have option to carry forward the position for one to five days and all members, whether type I or II are allowed to carry forward their position, the release said.