rnm alert vol liii may 2013 - top ca firms in delhi alert vol liii may 2013.pdf · the central...

Dear Readers, The recently notified VCES, 2013 pursuant to the announcement of the Hon’ble Finance Minister of India on the floor of the House during the Budget 2014, is of much significance and offers defaulters of service tax a good amnesty scheme. RNM would recommend all readers who may have defaulted on service tax dues to avail of the benefits of this scheme.

The Central Board of Direct Taxes has recently come out with a web based TDS facility for all users for making payment of TDS required under a transaction for sale of immovable property. The volatility of the Rupee has reached an all time high with many importers and companies with unhedged External Commercial Borrowings (ECB) coming in for a severe beating. The Rupee declined by almost 5.60% during the month of May 2013 which is of concern for the overall health of the economy and for the achievement of the expected GDP numbers for the year.

Regards,

CA U.N. Marwah

For and behalf of the RNM Alert Editorial Board

www.rnm.in

ISSUE NO.53 MAY, 2013

RNM ALERT Thinking of the Bottom Line – Think of Us

Issue No. 53: May, 2013 of 23

CONTENTS Direct Tax

- Case Laws

- Income which do not form part of Total Income 4 - Disallowance u/s 14A 4 - Profit & Loss from Business and Profession 4 - Capital Gain 4 - Set off or Carry forward 5 - Deduction 5 - Transfer Pricing 5 - Income Escaping Assessment 5-6 - Important update for TDS -194IA 6

Indirect Tax Central Excise

- Case Laws - Third party information under RTI Act 7 - Duty on CFL 7 - Clandestine Removal 7 - Shortage not always Clandestine Removal 7 - Prohibition of rebate if availing benefit of notification no 94/2004 7-8

Service Tax

- Notification/Circular - Last date for filing of ST–3 for Oct’12 to March’13 8 - Two rates of abatement for construction of complex etc 8 - Voluntary compliance encouragement scheme 9

- Case Laws

- Credit of Commission 9 - Wrong issuance of show cause notice 9 - Cenvat credit of business Auxiliary Service 9-10 - Cenvat Credit of job work 10 - Penalty 10


DIRECT TAX DIRECT TAX

Company Law Updates - Circular/ Notification/ Guidance

- Power of ROC to obtain declaration/affidavits from 11 Subscriber / first director at the time of incorporation

RBI Updates - Circular

- Liberalized remittance scheme for resident individuals – reporting 12 - Export of goods & software–realization of repatriation of export proceed–liberalization 12 - FDI in India-issue of equity shares under FDI scheme allowed 12 under the Govt. route against pre-operative/pre-incorporation expenses - Scheme of arrangements under the Cos. Act, 1956 – revised requirements 13 for the stock exchange & listed Cos. – clarification

Corporate Finance - Latest News

- Private Equity 14-15 - Mergers & Acquisition 16-19 - Venture Capital 19-22


Case Laws Income which do not form part of total income Sec 10(5) - LTC is exempt from tax only when employee has utilized LTC for travel within India. Nothing in Rule 2B provides assessee with a liberty to claim exemption where part of his package is spent on his overseas travel and part of his journey has been performed within India. [Source: Om Prakash Gupta vs. ITO [2013] 33 taxmann.com 169 (Chandigarh - Trib.)]

Disallowance u/s 14A Sec 14A – A.Y. 2004-05 - If no expenditure is incurred in relation to exempt income, no disallowance can be made under section 14A. [Source: Torrent Power Ltd. v. Deputy Commissioner of Income-tax [2013] 33 taxmann.com 287 (Ahmedabad - Trib.)]

Profit & Gain from Business & Profession Sec 28 - During assessment proceedings, Assessing Officer treated rental income derived by assessee from business centre (I.T. Park) as income from house property - Whether in view of order passed by Tribunal in assessee's own case relating to assessment year 2005-06, assessee's claim that income in question was to be treated as business income was to be allowed - Held, yes. [Source: Krishna Land Developers (P.) Ltd.v. ACIT [2013] 32 taxmann.com 325 (Mumbai - Trib.)]

Sec 40(a)(i) - Provision of sec. 40(a)(i) would be deemed to have been substantially complied with if taxes withheld from payment made to non-resident were deposited subsequent to the previous year in which expenditure was claimed by assessee. Hence, concealment penalty would not be leviable. [Source: Dynatron (P.) Ltd. v. DCIT [2013] 33 taxmann.com 603 (Mumbai - Trib.)]

Sec 40(a)(ia) – It covers not only the amounts which are payable as on 31st March of a particular year but also amounts payable at any time during the year. The language used in such provision doesn’t convey that such amount must continue to remain payable till the end of the accounting year. [Source: CIT V. Sikandarkhan N Tunvar [2013] 33 taxmann.com 133 (Gujarat)]

Sec 43B - “Due date” in s. 36(1)(va) for payment of employees’ Provident Fund, ESIC etc contribution should be read with s. 43B(b) to mean “due date” for filing ROI. [Source: CIT vs. Kichha Sugar Company Ltd. (ITA No. 20 of 2009)]

Capital Gain Sec 54 - Exemption claimed by assessee under section 54 cannot be denied on ground that assessee has not utilized sale consideration received from sale of flats itself, in purchasing a new residential house [Source: Smt. Pushpa Devi Tirbrewala v. ITO[2013] 33 taxmann.com 305 (Hyderabad - Trib.)]


Set off or carry forward Sec 72 - Brought forward unabsorbed depreciation can be set off against income from capital gain [Source: CIT v. Kisan Engineering Works Ltd. [2013] 33 taxmann.com 328 (Allahabad)]

Deductions Sec 80IB - Disallowance for non-deduction of TDS liability would increase profit of assessee from business of developing housing projects and ultimate profit would qualify for deduction u/s 80-IB. [Source: ITO vs. Keval Construction [2013] 33 taxmann.com 277 (Gujarat)] Transfer Pricing Sec 92C - Where lower turnover filter had been applied for selection of comparables, application of upper turnover filter was also warranted. [Source: NDS Services Pay-TV Technology (P.) Ltd. v. ACIT [2013] 33 taxmann.com 414 (Bangalore - Trib.)] Sec 92C - Where assessee-company sold its stake in an Indian company to its foreign associate company, discounted cash flow method could be used for valuation of shares sold, due to non-applicability of other methods prescribed u/s 92C(1) [Source: Ascendas (India) (P.) Ltd. V. DCIT [2013] 33 taxmann.com 295 (Chennai - Trib.)]

Income Escaping Assessment Sec 147 - Retrospective amendment to any provision cannot be a ground for making reassessment. [Source: Vodafone West Ltd.v. Assistant Commissioner of Income-tax [2013] 33 taxmann.com 67 (Gujarat)]

Sec 147 - Non-disclosure of primary facts [To tax cash credits] - Assessment year 2002-03 - A notice u/s 148 was issued for reopening of assessment beyond period of four years - Purported reasons to believe that income had escaped assessment were that a special information had been received from Director (Investigation) that assessee-company had received a sum from certain companies - Entries were in nature of accommodation entries and in reality it was assessee's own unaccounted money which had been shown in books of account as a receipt from aforesaid companies - Whether there was no mention in purported reasons that assessee had not made a full and true disclosure of material facts necessary for assessment;


on the contrary purported reasons indicated that amount mentioned therein had been shown in books of account as receipt from companies mentioned therein - Held, yes - Whether, therefore, issuance of notice under section 148 was bad in law and so, too, all proceedings pursuant thereto - Held, yes [Source: Comm. of Income-tax v. Viniyas Finance & Investment (P.) Ltd. [2013] 33 taxmann.com 86 (Delhi)]

Important update for TDS-194IA The Central Board of Direct Taxes (CBDT) has come out with an online form for making TDS payment on property transactions. The form has to filled online at: e-Payment of TDS on Sale of Property From June 1st 2013, transfer by a resident of immovable property (other than agricultural land) where consideration exceeds Rs 50 lakhs would attract TDS @ 1% u/s 194 IA. The person is required to deduct tax and would not be required to obtain a Tax Deduction Account Number. This form requires mandatory quoting of PAN which is verified with the IT Department's website. It also asks for address of the transferor and transferee along with the address of the property transaction.


INDIRECT TAX

Central Excise Case Laws Third party Information under RTI Act Right to Information Act, 2005, Annual Confidential Report of Member, CESTAT- Inspection of adverse entries and follow up action taken on question of integrity- Sought by Editor of a law reporter- HELD: Information sought pertained to third party who may plead defence of privacy- Procedure under Section 11(1) of Right to Information Act, 2005 was mandatory and includes notice to officer whose ACR was sought- If that officer pleaded private defence, decision has to be taken whether overriding public interest whould outweigh it- For that purpose, remission of mattter to Chief Information Commissioner, upheld- Section 8 of Right to Information Act, 2005 [Source: R.K. Jain v UNION OF INDIA, 2013(291) ELT 3(SC).] Duty On CFL Anti-dumping duty- Imposition of- Notification No. 138/2002-Cus. Imposes duty on all CFLs, irrespective of whether they are contained in lamp or not. [Source: Royal Enterprises v Commissioner of Customs, Cochin, 2013 (291) ELT 46 (Tri-Bang.)] Clandestine Removal Bill books, issued to customers, date wise entires in register titled “rent receipt register” and loose sheets- Authorized Signatory did not dispute recovery of these documents from factory, and explained that they pertained to sale of chewing tobacco to customsers, removed without payment of duty- His statement affirmed by proprietor of the firm, and both of them were not retracted- Hence, assessee’s plea that bill book contained supply orders placed be customers, rent receipt register/ loose sheets did not pertain to clearances of non-duty paid tobacco, rejected- Clandestine removal found to be established by preponderance of probabilities- Rules 11 and 25 of Centrla Excise Rules, 2002. [Source: RAVI & Co. v Commissioner of Central Excise, Lucknow, 2013 (291) ELT 46 (Tri-Bang.)] Shortage Not always Clandestine Removal Shortage or raw material found on verification of stock – HELD: Shortage of inputs based upon the statement of representative- No inventories prepared by the revenue for arriving at the shortage – No evidence of clandestine removal of the inputs – revenue failed to make out the clandestine removal of short found inputs- Section 11A of Central Excise Act, 1944. [Source: Puran Sons Alloys P Ltd. V Commissioner of Central Excise, Jaipur, 2013 (291) ELT 65 (Tri-Del)] Prohibition of Rebate if Availing Benefit of Notification No. 94/2004 Export- rebate of duty on goods exported under advance authorization for annual requirements in terms of Notification No. 94/2004- Cus. – HELD: Since goods are exported in discharge of export obligation in terms of Notification No. 94/2004- Cus., the rebate claim under Rule 18 of Central Excise Riles, 2002 is highly inadmissible, as Condition No. 8 of Notification No. 94/2004- Cus. Prohibits the availment of rebate of duty paid on exported goods under Rule 18 ibid – Section 35EE of Central excise Act, 1944 and Rule 18 of Central Excise Rules, 2002. [Source: In Re: Alcobex Metals Ltd., 2013 (291) ELT 129 (G.O.I.)]


Service Tax Notification/Circular/Order Last Date for filing of ST-3 for Oct. 12 to March, 13 Vide ORDER NO: 3/2013-Service Tax, dated the 23rd April, 2013, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3, for the period from 1st October 2012 to 31st March 2013, from 25th April, 2013 to 31st August, 2013. [Source: http://www.servicetax.gov.in/st-notfns-home.htm]

Two Rate of Abatement For Construction of Complex Etc Vide Notification No.09/2013 - Service Tax, 8th May, 2013 two rate of abatement have been provided to Construction of a complex, building etc. (i) taxable value 25% for a residential unit having (a) the carpet area of the unitless than 2000 square feet; and (b) the amount charged for the unit is less than rupees one crore and (ii) taxable value 30% for the other than the (i) above. Common conditions for both (i) and (ii) are (a) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004; (ii) The value of land is included in the amount charged from the service receiver.”. [Source: http://www.servicetax.gov.in/st-notfns-home.htm]


Voluntary Compliance Encouragement Scheme Vide Notification No.10/2013 - Service Tax, dated 13th May, 2013 “Service Tax Voluntary Compliance Encouragement Scheme,2013” has come into effect from 13th May, 2013. – The declaration in respect of tax dues under the Scheme shall be made in Form VCES -1. The tax dues payable under the Scheme along with interest. The CENVAT credit shall not be utilised for payment of tax dues under the Scheme. [Source: http://www.servicetax.gov.in/st-notfns-home.htm]

Case law: Credit of Commission Cenvat Credit- Input Services- Credit denied on Service Tax paid on commission agents’ services for promotion of sale of steel tubes & pipes, structural pipes and PVC pipes- Issue already decided by Tribunal in favour of company in Final Order No. 292/2012-SM (BR) in own case on similar facts- “Sales promotion” specifically included as ‘Input Service’ in Rule 2(1) of Cenvat Credit Rules, 2004- Precedent decision followed- Section 11A of Central Excise Act and Rule 2(1) of Cenvat Credit Rules, 2004 [Source: Vishal Pipes Ltd. V Commissioner of Central Excise, Noida, 2013 (30) STR 378 (Tri-Del.)] Wrong Issuance of Show Cause Notice issuance of- Credit of Serviec Tax- On being informed that assessee was not eligible to take it, they promptly paid that amount with interest- no case made out of suppression or fraud or misdeclaration, or dispute of payment of service tax and taking of credit on proper documents- HELD: Issue of Show Cause Notice was wrong- Section 11A (2B) of Central Excise Act, 1944. [Source: Astral Pharma Ltd. V Commissioner of C. Ex. Vadodara, 2013 (30) STR 397 (Tri-Ahmd.)]

Cenvat Credit of Business Auxiliary Service Cenvat Credit- Input service- Service Tax paid under business auxiliary service of arranging loan for business- Definition of ‘input service’ under Rule 2(1) of Cenvat credit Rules, wide enough to include all services relating to business activity- Expression ‘such as’ in definition held to be inclusive and not exclusive in various decisions- service without which business not possible is ‘input service’- Service of


arranging finance for running business is included in examples of ‘input service’ given in definition in Rule 2(l) ibid- Entitled to benefit of Cenvat Credit. [Sourece: Rico Castings Ltd. V Commissioner of Central Excise, Delhi-III, 2013 (30) STR 374 (Tri-Del.)] Cenvat Credit of Job Work Service tax paid for job worker services and cargo handling- As decided in ‘Multi-Organic Pvt. Ltd.- 2010 (253) ELT 804 (Tribunal) Job worker and services of job worker entitled to option of exemption under Notification No. 8/2005-ST or to avail Service Tax Credit- Invoice issued by CHA clearly proving cargo handling services provided to appellant- Credit admissible- Rule 3 of Cenvat Credit Rules, 2004. [Source: Royal Touch Aluminium Pvt. Ltd. V Commr. Of C. Ex., Ahmedabad, 2013 (30) STR 375 (Tri-Ahmd.)] Penalty Adjudicating authority confirmed demand but dropped penalty under Section 76 of Finance Act, 1994- Commisisoner in Review proceeding imposed penalty under Section 76 ibid- Subsequently Commissioner (Appeals) dropped the demand- Department did not produce any evidence challenging the aforesaid order-in-appeal- HEDL: Once the demand itself has been set aside, the penalty is not warranted- Section 76 of the Finance Act, 1994. [Sourece: Sinhal Engineering Enterprises v Commissioner of C. Ex., Bolput, 2013 (30) STR 406 (Tri- Kolkata)]


COMPANY LAW UPDATES Case Laws Power of ROCs to obtain declaration/affidavits from subscribers/first directors at the time of incorporation It is clarified that in exercise of the powers under the Companies Act, the Registrar of Companies may obtain declaration/affidavits from subscribers/first directors first at the time of incorporation and from directors, subsequently whenever company changes its objects, to the effect that company/directors shall not accept deposits unless compliance with the applicable provisions of the Companies Act, 1956, RBI Act, 1934 and SEBI Act, 1992 and rules/directions/regulations made there under are duly complied and filed with the concerned authorities. [Source: General Circular No. 11/2013 dated 29th May, 2013]


RBI & SEBI Updates Circular/Notification/Guidance Liberalized Remittance Scheme for Resident Individuals – Reporting It has now been decided, to collect the LRS data in soft form only and to dispense with the submission of hard copies of the monthly statements by the AD banks. Accordingly, with effect from July 01, 2013, AD Category – I banks are required to upload the data (LRS data of June 2013) in Online Returns Filing System (ORFS) on or before fifth of the following month. Where there is no data to furnish, AD banks are advised to upload ‘nil’ figures in the ORFS system. [Source: Notification No. RBI/2012-13/504 A.P. (DIR Series) Circular No. 106 dated 23rd May, 2013] Export of Goods and Software – Realization and Repatriation of export proceeds – Liberalization It has been decided, in consultation with the Government of India, to bring down the realization period from twelve months to nine months from the date of export, with immediate effect, valid till September 30, 2013. [Source: Notification No. RBI/2012-13/503 A.P. (DIR Series) Circular No. 105 dated 20th May, 2013] Foreign Direct Investment (FDI) in India - Issue of equity shares under the FDI scheme allowed under the Government route against pre-operative/pre-incorporation expenses It has now been decided to amend condition at (c) in Para 3 (II) of A.P. (DIR Series) Circular No. 74 dated June 30, 2011 read with A.P. (DIR Series) Circular No. 55 dated December 9, 2011. The amended condition is given hereunder:- c.f. A.P.(DIR Series) Circular No. 74 dated June 30, 2011

Earlier Condition

Revised condition

Para 3(II)(c)

Payments should be made directly by the foreign investor to the company. Payments made through third parties citing the absence of a bank account or similar such reasons will not be eligible for issuance of shares towards FDI; and

Payments should be made by the foreign investor to the company directly or through the bank account opened by the foreign investor as provided under FEMA Regulations; and

[Source: Notification No. RBI/2012-13/502 A.P. (DIR Series) Circular No. 104 dated 17th May, 2013]


Scheme of Arrangement under the Companies Act, 1956 – Revised requirements for the Stock Exchanges and Listed Companies - Clarification This is with reference to SEBI Circular No. CIR/CFD/DIL/5/2013 dated February 4, 2013 on the captioned subject. SEBI Circular No. CIR/CFD/DIL/5/2013 dated February 4, 2013 is applicable to all listed companies undertaking a Scheme of Arrangement under Part IV and Chapter V of Part VI of the Companies Act, 1956, (Amalgamation/ Merger/ Reconstruction/ Reduction Of Capital, etc.). Thus, it is hereby clarified that the Circular referred to above and this Circular are applicable even to cases where no exemption from Rule 19(2) (b) of Securities Contracts (Regulation) Rules, 1957 is sought from SEBI.

1. Requirement of submission of Valuation Report from Independent Chartered Accountant:- (i) All listed companies undertaking a Scheme of Arrangement under Part IV and Chapter V of Part

VI of the Companies Act, 1956, (Amalgamation/ Merger/ Reconstruction/ Reduction Of Capital, etc.) are required to submit a valuation report in terms of Para (I) (A) read with Part A, Annexure I of the SEBI Circular No. CIR/CFD/DIL/5/2013 dated February 4, 2013.

(ii) However, 'Valuation Report from an Independent Chartered Accountant' need not be required in cases where there is no change in the shareholding pattern of the listed company / resultant company.

(iii) For the limited purpose of this Circular, 'change in the shareholding pattern’ shall mean: (a) change in the proportion of shareholding of any of the existing shareholders of the listed

company in the resultant company; or (b) new shareholder being allotted equity shares of the resultant company; or (c) existing shareholder exiting the company pursuant to the Scheme of Arrangement

[Source: Circular CIR/CFD/DIL/8/2013 dated 21st May, 2013]


CORPORATE FINANCE

Latest News Private Equity NSL Renewable Power Raises Investment From ASD NSL Renewable Power has signed agreement with The Asian Development Bank for $30 Mn equity investment. The Asian Development Bank is investing $30 Mn in NSL Renewable Power to support hydropower and wind power projects that will generate 530 gigawatt-hours every year, and reduce carbon dioxide emission by 400,000 tons annually from 2017 onward. NSL Renewable Power will use the investment proceeds to partially finance the construction of the 100-megawatt Tidong run-of-river hydropower project in Himachal Pradesh, and the 75-megawatt Chilarewadi wind project in Maharashtra. [Source: Deal Curry, May 2, 2013] Tata Capital Raises Funds From Foreign Investors Tata Capital has raised $600 Mn from institutional investors from North America, Asia and the Middle East for a PE fund to invest in India, BL stated. The investors can choose to co-invest directly into portfolio companies alongside the fund on a mutually discretionary basis. The investors include sovereign investors, financial institutions, global corporates and high net-worth families. [Source: Business Line, May 2, 2013] CLSA Partner Buys Stake In Camson Bio Technologies Bio Harvest Pte a part of CLSA Capital Partners is acquiring 19.6% stake in Camson Bio Technologies for $10 Mn. The company will issue of 41,95,513 equity shares at $1.1 per share for a total of $4.6 Mn and 16,74,327 convertible warrants at $3.21 per warrant for a total of $5.37 Mn. Post the conversion of the warrants into equity the stake would aggregate upto 19.6%. Founded in 1993 Camson is an agricultural biotechnology company. Headquartered in Bangalore Camson produces biopesticides, biofertilizers and hybrid seeds. [Source: Vccircle, May 6, 2013] Piramal Invests In Shriram Transport Finance; TPG Capital Exits Through a block deal Piramal Enterprises bought TPG Capital's 10% equity stake in Shriram Transport Finance Company. Piramal has acquired 2,28,47,468 shares of Shriram Transport at R723 per share for a total amount of R1652 Cr from TPG. With this block deal, Piramal plans to enhance its presence in financial services sector as earlier it announced its foray into financial service business which includes an NBFC for lending to real estate and education sector. [Source: Financial Express, May 11, 2013]


Goldman Sachs Invests In BPL Medical Technologies Goldman Sachs has made R110 Cr equity investment in BPL Medical Technologies to further expand the company’s medical device business. As apart of deal, Ankur Sahu and Harsh Nanda, an Executive Director at Goldman Sachs, will join the Board of BPL Medical. BPL Medical Technologies is a group company of BPL Limited. BPL Ltd was founded by T P G Nambiar in 1963 to manufacture precision electrical instrumentation. [Source: Times of India, May 13, 2013] Goldman Sachs Exits From Vatika Group Goldman Sachs has exited its investment in Vatika Group, a Delhi-based realty firm by selling its stake to the promoters of the group. The settlement has been reached between the two parties and the exit will be in two parts - a part in cash and another as stake in a project of Vatika. Promoted by Anil Bhalla, Vatika Group is engaged in real estate development, including commercial, residential and hospitality sectors and operates primarily through Vatika Limited and Vatika Hotels Private Limited. [Source: Indiainfoline.com, May 14, 2013] Everstone Capital Raises Funds To Build Industrial Warehouses Everstone Capital has raised $250 Mn (over R1350 Cr) from global investors to build industrial warehousing in the country. Everstone is developing a network of warehousing centres through IndoSpace Logistics Parks. The IndoSpace parks are managed by Realterm Everstone Development Management, a JV between Realterm Global and Everstone. Realterm Global is an industrial real estate firm that manages approximately $2.5 Bn across over 300 operating and development properties (around 33 Mn sq. ft) in North America, Europe and India. [Source: Times of India, May 20, 2013]


Merger & Acquisition Section Smith & Nephew To Buy Adler Mediequip And Sushrut Surgicals Smith & Nephew Plc, the London listed firm engaged in medical technology business has announced to acquire Adler Mediequip Private Limited and with it, the brands and assets of Sushrut Surgicals Private Limited, producer of orthopaedic trauma products. The acquisition will give Smith & Nephew a well-established platform to provide and develop products for the mid-tier market in India and for export as well as entry point to India's trauma segment. [Source: Deal Curry, May 3, 2013] HCC To Sell Non Core Asset To Repay Debt HCC aims to raise up to R1,000 Cr by selling stake in real estate and non- core infrastructure assets for paring some of its debt and reducing the strain on its balance sheet. The company has been under duress due to the slowdown in business and burden of high interest rates. Last year, the company got approval to restructure term loans of R3,200 Cr. [Source: Economic Times, May 6, 2013] Wipro Buys Minority Stake In Opera Solution Wipro has signed an agreement to enter into a strategic partnership and take a minority position for $30 Mn in Opera Solutions, LLC a global big data science company. With this deal, Opera Solutions aims to capture the increasing demand for big data analytics. [Source: Economic Times, May 8, 2013] Servion Global Buys JAMS UK Servion Global Solutions has entered into definitive acquisition agreement with JAMS UK and JAMS India, which develops software products used in contact centres. The acquisition will enable Servion to widen its footprint and network in UK and it will also give a new development center in Pune. Post acquisition JAMS becomes a fully owned subsidiary of Servion. JAMS Technologies is a software development company engaged in developing software products used in Call Centers that are integrated with Cisco IP Contact Centers Product Suite. JAMS provide services in all the aspects of Software Development Life Cycle. [Source: Livemint, May 8, 2013] Ceebros Hotel Acquires Chennai Project Divison From Viceroy Hotel Ceebros has acquired the entire 'Chennai Project Division' comprising of 'Chennai Hotel Project’ and 'Chennai Residential Project' from Viceroy Hotel, Chennai for a total consideration of R480 Cr. The hospitality chain has been in the process of reducing its debt by roping in strategic partners for couple of its projects and divesting stake in others. Hyderabad based, Viceroy Hotels develops hotels, restaurants, and food and beverage concepts. The company owns and operates luxury hotels under the Marriott Hyderabad, J W Marriott Chennai, Renaissance Bangalore, and Renaissance Vizag names; and a business hotel under the Courtyard Hyderabad name. [Source: Business Standard, May 9, 2013]


Allied Blenders Acquires Wales Distilleries Allied Blenders & Distillers has acquired the Wales Distilleries based in Bengal for an undisclosed amount. The acquisition will strengthen Alleid Blenders presence in the Eastern markets it is also part of a strategy to increase inhouse production. [Source: Economic Times, May 10, 2013] Avantor Sells Product Line Of Its Medical Diagnostic Div To WBM Health Science Avantor Performance Materials, a company engaged in the business of manufacturing and marketing of laboratory chemicals and consumables and diagnostic products has sold product line of its medical science group diagnostic business division to WBM Health Science Private Limited., for an undisclosed amount. WBM Health Science is engaged in the business of sales and marketing of Instruments/ Equipments/ Systems, Software, Chemicals, Consumables used in Life Science Research, Diagnostics and Medical diagnosis and treatment including surgery. [Source: Deal Curry, May 10, 2013] DLF Sells Hyderabad Property To Suvarnabhoomi Developers As part of its strategy to exit from the non-core assets and reduce debt, DLF has sold 32 acre of land in Hyderabad for about R650 Cr to Suvarnabhoomi Developers. From 2010 till last December, DLF has raised about R8,000 Cr by divesting its non-core assets such as hotel plots, IT parks and SEZs. [Source: Economic Times, May 12, 2013] Manipal Hospitals Invests In Ankur Healthcare Manipal Hospitals has invested growth capital in Ankur Healthcare, a speciality Centre, focused in delivering comprehensive services in the areas of Reproductive Medicine -IVF, Andrology and Men’s Health, IIFL stated. ET stated that Manipal invested R40 Cr for 51% stake in Ankur Healthcare. [Source: Times of India, May 15, 2013] JSW Acquires Cement Grinding Unit From Heidelberg Cement JSW Ispat is acquiring cement grinding facility of Heidelberg Cement India Limited located at Raigad, Maharashtra, adjacent to the company's steel plant. The acquisition will enable JSW Ispat Steel to develop a stable outlet for the evacuation of slag, a waste generated during the smelting and refining of ore, and create additional grinding facility for its consumption and disposal, mint stated. For Heidelberg Cement, the disposal of cement facility is in line with company’s philosophy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India where the company had recently expanded its cement capacity from 2 to 5 Mn tpa. [Source: Mint, May 22, 2013] Mitsubishi-Hitachi Buys Concast India Mitsubishi-Hitachi Metals Machinery, Inc. has acquired Concast India Limited to expand its business in India. Through this deal Mitsubishi plans to increase sales and accelerate global business expansion, thereby aiming at being among the top supplier for metals machinery in the world. With this deal


Mitsubishi has also acquired Concast’s casting technologies which they did not have before and would getter a better access in Middle East, Africa markets where Concast is well established. [Source: Vccircle, May 22, 2013] Dentsu Acquires Webchutney From Network18 Capital18, the venture capital arm of Network18 has entered into an agreement with Dentsu India Group to divest its stake in Webchutney – a digital ad and consulting agency. Capital18 was a majority shareholder of Webchutney and the investment has generated a return of over 300%. This is in line with its stated objective of profitably monetizing investments to create value for the shareholders of Network18. [Source: Business standard, May 24, 2013] Gaursons Acquires Land In Noida For Township Project Gaursons India has acquired 300 acre land from Jaypee Group located at Yamuna Expressway in Greater Noida for around R1500 Cr to develop integrated township. Gaursons plans to construct about 15,000 apartments in affordable segment and launch the township by end of this year. It has fund the acquisition through bank loans and internal accruals. [Source: The Hindu Business Line, May 24, 2013] Cigniti Tech Buys Gallops Group Cos Cigniti Technologies has approved and signed the agreement for acquisition of Gallop group companies which are engaged in software testing activities. The Gallop group companies include India based Gallop Solutions and USA based Gallop Solutions Inc. The acquisition will enable Cigniti Tech to augment testing capabilities and bring in new clients and geographical areas. [Source: Deal Curry, May 29, 2013] Sumitomo Rubber Set To Take Over Apollo Tyres South Africa Sumitomo Rubber Industries would be taking over Apollo Tyres South Africa including the Ladysmith Tyre plant and Dunlop Brand rights in Africa. The acquisition would cost Sumitomo $60 Mn and the deal is expected to conclude in next four months. Sumitomo Rubber Industries is a Japan based manufacturer of automotive tyres and industrial rubber products. It has factories in Japan, China, Indonesia, Malaysia, Vietnam, Thailand and Brazil. [Source: Livemint, May 30, 2013] Healthcare Global Acquires Majority Stake In BACC HealthCare Global Enterprises has made an investment and has acquired a majority stake in Bangalore Assisted Conception Centre, a leading provider of fertility care for undisclosed amount. Post deal, BACC will be known as Milann – The Fertility Center. The new entity will now expand into many towns and cities, including Tier-II and Tier-III towns. Founded in 1990 by Kamini A. Rao, BACC operates four fertility centers across Bangalore. In addition to an accredited fellowship program, Milann also runs CREST, the only training centre for embryologists and fertility specialists in India. It has treated over 15,000 patients.


[Source: Business Standard, May 30, 2013] TVS Logistics Buys Wainwright Industries TVS Logistics has made its second acquisition in US by acquiring Wainwright Industries for R50 Cr. With this deal, TVS has equipped itself with complete end-to-end production supply chain solutions such as 'cross docking' and sub-assembly for manufacturers and will be able to offer complete outsourcing model to its customers. [Source: Economic Times, May 31, 2013]

Venture Capital Bluegape Recieves Seed Funding New Delhi based Bluegape, an online fan merchandising store has raised a seed round from Aniket Khera, Rahul Bhatia and one more internet entrepreneur. The funding will be used to sign up with more brands for their fan merchandising rights and also improving on logistics & warehousing. [Source: yourstory.in, May 3, 2013] Bakery Chain - Ovenfresh Raises Funds From Kalaari Capital Ubiquitous Foods, which runs bakery chain Ovenfresh has raised undisclosed amount from Kalaari Capital. The investment has been made from the Kalaari Capital Partners II fund and the transaction was advised by Vichar Partners. As a part of deal, Rajesh Raju and Sampathkumar Pudhukottai from Kalaari Capital join the company’s board. Founded in 2007 by Rajiv Subramanian, Ovenfresh is a bakery chain that serves a wide variety of products including wraps and cutlets, birthday and other cakes, burgers and sandwiches and biryanis and kebabs. This invested capital is primarily utilized for customer acquisition, market validation, product development and hiring [Source: startupcentral, May 6, 2013]


SEBI Approves Startup Village's Angel Fund Telecom incubator, Startup Village has received SEBI’s approval to raise a $10 Mn for Startup Village angel fund which could go upto $20 Mn with a 'Green Shoe' (over-allotment) option. Once the initial close of $2 Mn is received the angel fund will target telecom and internet sector. The fund plan to invest $20,000 and $250,000 USD into startups and might also co-invest with other early stage funds for higher amounts. [Source: Economic Times, May 7, 2013] Varthana Raises Funds From Accion's Venture Lab Varthana, which provides finances to low cost private school has received investment from Accion’s Venture Lab. Founded by Steve Hardgrave and Brajesh Mishra, Varthana, provides loans and support to affordable private schools in India, promoting access to and affordability of quality education for India’s poor and emerging middle class. [Source: Business Standard, May 7, 2013] GenY Medium Receives Angel Investment GenY Medium, a social media marketing services company in Hyderabad has received angel investment from Srinath Devireddy for minority stake. As a part of deal, Devireddy will join the board of the company and will mentor the team, especially the next line of the management, and help in developing the business model for overseas clients. Founded in 2012 by Yashwant Kumar, Richa Sethia and Ravi Jain, GenY Medium is in the business of managing perceptions of brands – online. It uses proprietary analytics and online reputation management tools to give brands an edge versus their competition [Source: Business Standard, May 10, 2013] Online Jewellery Portal CaratLane.com Receives Series C Investment Caratlane Trading, which runs online diamond and jewellery portal - Caratlane.com has received $15 Mn in Series C funding. In 2011, Caratlane raised $6 Mn from Tiger Global which was followed by another $6 Mn from the same investor in 2012. Caratlane was founded in 2008 by Srinivasa Gopalan and Mithun Sacheti. It offer more than 1,40,000 loose diamonds, and over 1000 ready-to-choose diamond jewellery online like diamond rings, pendants, earrings, bracelets, bangles and gold coins for all budgets. [Source: Nextbigwhat, May 14, 2013] 500 Startups Invests In Pricebaba 500 Startups has invested undisclosed amount of seed funding investment in Shopping intelligence engine – PriceBaba. Existing angel investors - Karamveer Singh and Dinesh Tejwani also invested in the seed round. Following the 500 Startups investment, PriceBaba joins the firm’s business accelerator in Mountain View. With this round of funding, Pricebaba plans to expand it services to 10 cities by the year end. [Source: Deal Curry, May 15, 2013]


Ravi Gururaj Launches Startup Incubator- Frictionless Ventures Former V.P of Cloud Platforms at Citrix Systems, Ravi Gururaj is going launch an incubation centre for cloud computing ventures - Frictionless Ventures. Frictionless Ventures will serve as platform through which he could freely innovate, ideate, incubate, and invest in disruptive new technology ideas. [Source: Economic Times, May 16, 2013] Rainmaker Receives Seed Investment Rainmaker, a learning, content and test management company focused on India's legal ecosystem has raised seed funding of $3 Mn across three rounds from a mix of family, friends and angel investors. [Source: Economic Times, May 17, 2013] Mayfield India Adds Beer Cafe To Its Portfolio Beer Cafe, a QSR chain managed by BTB Marketing Pvt. Ltd. has raised funding from Mayfield India Fund. With this investment Vikram Godse of Mayfield has joined the board of BTB Marketing. The five-year-old Beer Cafe currently operates four outlets in and around Delhi/NCR. [Source: Deal Curry, May 17, 2013] Sequoia Capital Invests In Hector Beverages Hector Beverages has raised $8 Mn in a second round of funding from Sequoia Capital and existing investors. Sequoia Capital has led the round with $5 Mn investment, while existing investors Catamaran Investment and FootPrint Ventures have invested the remaining amount. Hector will use the funds primarily for marketing and expansion of production capacity. [Source: Economic Times, May 20, 2013] Kae Capital Invests In CultureAlley.com Kae Capital has invested an undisclosed amount in Jaipur-based Intap Labs Private Limited for a minority stake. The company plans to use the raised funds for product development. Launched in November 2012 by Nishant Patni, Intap Labs runs a language-learning platform CultureAlley.com. The platform enables interactive language learning through self-paced audio-visual lessons and can help one learn any language including English, Spanish, Mandarin, Hindi, Japanese, Italian, French and Korean. [Source: Mint, May 22, 2013] Unicommerce Raises Funds From NVP SaaS based order management and fulfillment provider – Unicommerce has raised funds from Nexus Venture Partners. The funds raised will be utilized to increase sales and marketing efforts and build its product and infrastructure, nextbigwhat stated. Unicommerce flagship product- Uniware is a web based solution that manages the complete order fulfillment lifecycle. In order to maintain exact and complete information of every single product in warehouse, Uniware assigns unique serial number to every unit that enables etailers to track various details such as vendor, purchase date, product expiry and unit specification. [Source: Deal Curry, May 28, 2013]


Navam Capital, Aarin Capital Invest In Invictus Oncology Invictus Oncology Pvt. Ltd has raised R10.5 Cr for development of platinum chemotherapies from Navam Capital and Aarin Capital in its first round of fund-raising. Platinum chemotherapies is used in the treatment of several types of cancer, including lung, testicular, colorectal, and childhood cancers. [Source: Vccircle, May 28, 2013] Inventus Capital, Mumbai Angels Invest In eDreams Edusoft Inventus Capital Partners along with existing investor – Mumbai angels has invested $2 Mn in eDreams Edusoft, an education technology company in Bangalore. This year in January, eDreams Software raised R5 Cr from Mumbai Angel. Founded in 2010 by Rajeev Pathak, eDreams provides educational software products. It flagship offering Funtoot is a personalized tutor that teaches children in a fun and interactive manner. [Source: yourstory.in , May 30, 2013]


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