rnm alert vol lxxi november 2014

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ISSUE NO.71 NOVEMBER, 2014

RNM ALERT

Thinking of the Bottom Line – Think of Us

Dear Readers, It is that time of the year, when all of us reflect on the year gone past and make our resolutions for the next year. Expectations amongst India Inc. and also in the international community that 2015 would be better than 2014 for India are high. Mr. Dominic Barton, the CEO of consulting firm, McKinsey, recently said that India is back on the priority list of CEOs after Narendra Modi's ascension to power. According to the

International Monetary Fund (IMF), the focus on governance and financial inclusion measures taken by the Government are positive signs taking India back on the growth track. Having a positive outlook on India, the IMF expects the economy to grow at a rate of 5.6% in 2014, as compared to a growth rate of 4.7% seen in 2013. The Cabinet Committee on Economic Affairs (CCEA) and the Government have approved the key proposals for the solar power sector. The proposals include:

Providing USD 160 mn to central public sector units to set up over 1,000 MW grid-connected solar photovoltaic power projects;

Setting up of 25 solar parks each with a capacity of 500 MW with the Government allocating USD 650 mn for the same;

Setting up of over 300 MW of solar power projects by defence establishments;

Setting up 25 solar parks and Ultra Mega Solar Power Projects to accommodate over 20,000 MW of solar power from 2014-15 to 2018-19;

RNM is currently working on an active Mandate in the solar power generation sector and this recent proposal is in our view likely to give a good fillip to this sector. There are considerable hurdles still in the power sector, and assistance in setting up solar parks and for domestic solar PV manufacturers will go a long way in India’s objective of building more clean energy sources of power. Wishing all our readers a Merry Christmas and a Happy New Year.

Regards, CA U.N. Marwah

For and behalf of the RNM Alert Editorial Board

Issue No. 71: November, 2014 of 25

CONTENTS Direct Tax

- Case Laws - Disallowed Expenses 4 - Capital Gain 4 - Profit & Gain from Business & Profession 4 - Unexplained Expenditure 4 - Minimum Alternate Tax 5 - Procedure for Assessment 5 - Tax Deduction at Source 5 - Penalties 5-6

Indirect Tax Service Tax

- Case Laws - Appeal couldn’t be considered as time-barred without determining the Date of Delivery 7 - Delay Filing appeal due to accident of staff of representative wasn’t condonable 7 - Dept. can’t adjust unconfirmed demand against refund payable to assessee 7 - ESIC wasn’t liable to service tax; CESTAT sets aside demand of Rs. 1945 crores 7 - Hiring & renting of cab aren’t distinguishable; ST leviable 7 - Institute providing coaching in mathematics through ‘Abacus’ ; exempt from ST 7 - Levy of service tax on restaurant & hotels accommodation is unconditional 8 - Marketing or promotion of products of Foreign principal in India; export of service 8 - Mere receipt of summons in Calcutta from Authorities of Kerala 8 - No ST refund on services used for export assessee correlates services 9 - Penalty had to be waived off if assessee had paid ST under confusion 9 - Prior to 23/8/2007, sub-contractors weren’t liable to ST circular levying 9 - Proprietorship firm is also a ‘Concern’ for Service Tax purpose 9 - Sale of inputs while providing services amount to ‘Removal of input as such’ 9 - SC transfer various appeals pending before CESTAT benches to full bench 9 - Assess can use CENVAT credit to pay ST under reverse charge 10 - Welding electrodes used in repair or maintenance of P&M are eligible for credit 10


DIRECT TAX DIRECT TAX

Company Law Updates - Circular

- Extension of time for holding AGM u/s 96(i) of Cos. Act, 2013- Cos. regd. in J&K 11 - Co. Law Settlement Scheme, 2014 (CLASS – 2014) 11 - Issue of FCCBs & FCBs – Clarify on applicability of prov. of Chap. II of Cos. Act, 2013 11 - Clarification on matters on the Cos. Rules, 2014 11 - The Cos Law Board Amendment Rules, 2014 12

RBI Updates - Circular - ECB Policy – Parting of ECB Proceeds 13

Corporate Finance - Latest News

- Private Equity 14-15 - Mergers & Acquisition 16-20 - Venture Capital 20-24


DIRECT TAX Case Laws Disallowed Expenses Sec 37(1) - Compounding fee paid to municipality on deviation from sanctioned plan was in nature of penalty, disallowable. [Source: Nahar Spinning Mills Ltd. vs. CIT, 49 taxmann.com 565 (Punjab & Haryana)] Sec 40(a)(ia) - No disallowance for non-payment of TDS can be made if payee has paid tax thereon. [Source: Shri G. Shankar vs. ACIT (ITAT Bangalore), ITA No.1832/Bang/2013]

Capital Gain Sec 54 - Purchasing the undivided share of a co-owner in a new flat constitutes a "purchase" & is eligible for exemption. [Source: ITO vs. Narinder Kaur Bhatia (ITAT Mumbai), ITA No. 1791/Mum/2011]

Sec 2(47) – Assets taken over by secured creditors - Where secured creditor took over possession and control of assets of assessee due to default committed in repayment of loan, it did not amount to transfer of assets within meaning of section 2(47). [Source: Rajasthan Petro Synthetics Ltd. vs. ACIT, (2014) 49 taxmann.com 599 (Delhi-Trib.)]

Sec 48 – Computation of LTCG - Capital asset acquired by the assessee through succession, the indexed cost of acquisition has to be computed with reference to the year in which the previous owner first held the asset. [Source: CIT vs. Smt. Daisy Devaiah, 2014 (11) TMI 944]

Sec 2(47)(vi) - A mere Power of Attorney which does not enable enjoyment of property does not result in a "transfer". [Source: CIT vs. C. Sugumaran (Madras H.C), Tax Case (Appeal) No. 840 of 2014]

Profit & Gain from Business & Profession Sec. 28/37(1) - Even if the business is illegal, a loss which is incidental to such business has to be allowed u/s 28 and the Explanation to s. 37(1) has no bearing. [Source: Bipinchandra K. Bhatia vs. DCIT (Gujarat H.C), Tax Appeal No. 107 of 2004]

Unexplained Expenditure Sec. 69C - Purchases cannot be treated as bogus solely on the ground that suppliers are not traceable if the assessee has paid by a/c payee cheques and produced the income-tax and sales-tax documents and bank statements of the suppliers. [Source: Ganpatraj A Sanghavi vs. ACIT (ITAT Mumbai), ITA No. 2826/Mum/2013]


Minimum Alternative Tax Sec. 115JB - MAT Companies aren't liable to pay interest under sec. 234B and sec. 234C for non-payment of MAT in advance. [Source: Rockline Developers Pvt. Ltd. vs. ITO, [2014] 49 taxmann.com 391 (Mumbai - Tribunal)]

Procedure of Assessment Sec. 143(2) – Notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late. [Source: Shri G.N. Mohan Raju vs. ITO, ITA No. 242 & 243/Bang/2013]

Sec. 147 - Reopening on the possibility that the assessee AOP may or may not be a taxable unit is based on surmise and presumption & is invalid. [Source: Investeringsforeningen BankInvest vs. DDIT (ITAT Mumbai), ITA No. 3721/Mum/2014]

Sec. 147/151 - Sanction by the CIT with word "approved" without recording satisfaction note renders reopening invalid. [Source: ITO vs. N.C Cables Ltd. (ITAT Delhi), ITA No. 4122/Del/2009]

Sec. 148 - Reopening based on re-appreciation of same material on record not valid. [Source: Global Signal Cables (India) Pvt. Ltd. vs. DCIT (Delhi High Court), W.P.(C) 747/2014, Judgment]

Tax Deducted at Source Sec. 194A - Liability for TDS u/s 194A does not arise if the beneficiary is not ascertainable and the person in whose name the interest is credited is not person liable to pay tax. [Source: Circular No. 08/2011]

Sec. 195 – Reimbursement of share of costs towards administrative and management support services in connection with technology updates etc. is not taxable. [Source: DCIT vs. Ernst & Young Pvt. Ltd., ITA No. 1159/Kol/2012 ]

Sec. 195 - Export commission paid to foreign agent won't attract TDS if such agent didn't have PE in India. [Source: Asst. Director of Income Tax vs. Sumit Gupta, 50 taxmann.com 60 (Jaipur – Tribunal)]

Penalty Sec. 271(1)(c) - No Penalty on claim of Provision for Doubtful Debts. In case assessee fails to add back the provision for doubtful debts in computation of income by mistake and A.O during assessment add backs the same, penalty u/s 271(1)(c) will not be leviable on the same. [Source: DCIT vs. NEPA Limited, ITA No. 683/Ind/2013] Sec. 271(1)(c) - Explanation that bona fide mistake was committed on advice of CA is a reasonable one as per Explanation 1B of s. 271(1) and does not attract penalty. [Source: ACIT vs. Cecilia Haresh Chaganlal, ITA No. 2661/Mum/2013]


Sec. 271(1)(c) - Apart from falsity of the explanation, the department must have cogent material or evidence from which it could be inferred that assessee has consciously concealed particulars of income or deliberately furnished inaccurate particulars of income. [Source: G.K Properties Pvt. Ltd. vs. ITO (Hyderabad), ITA No. 1803/Hyd/2013]

Sec. 271(1)(c) - Penalty initiated without specifying whether it is for concealment or for furnishing inaccurate particulars it invalid. [Source: DCIT vs. Nepa Ltd. (ITAT Indore), ITA No. 683/Ind/2013]


INDIRECT TAX

Service Tax

Case Law Appeal couldn't be considered as time-barred without first determining the date of delivery of order to assessee In order to attract deeming provision regarding service of order under Section 37C(2) of Central Excise Act, date of tendering/delivery of order sent by post has to be ascertained; failing which appeal cannot be dismissed as time-barred [Source: Ram Pyare Yadav v. Union of India [2014] 50 taxmann.com 362 (Allahabad)]

Delay filing appeal due to accident of staff of representative wasn't condonable without medical certificate Delay caused due to accident of staff of Chartered Accountant cannot be condoned when assessee could not name said staff and no medical certificate evidencing injury was filed [Source: A.B.T. Kumar & Company v. Commissioner of Central Excise & Service Tax, Jamshedpur [2014] 51 taxmann.com 112 (Kolkata - CESTAT)] Department can't adjust unconfirmed demand against refund payable to assessee While confirmed demand can be adjusted from amount of refund, there is no provision to adjust unconfirmed demand from amount of refund [Source: Bharat Sanchar Nigam Ltd. v. Comm. of Cent. Ex., Jaipur [2014] 51 taxmann.com 10 (New Delhi - CESTAT)] ESI Corporation wasn't liable to service tax; CESTAT sets aside demand of Rs. 1945 crores No service tax can be collected in respect of services provided by the Employees' State Insurance Corporation set up under the Employees State Insurance Act, 1948 [Source: Employees State Insurance Corporation (ESIC) v. Commissioner of Service Tax, New Delhi [2014] 51 taxmann.com 113 (New Delhi - CESTAT)]

Hiring and renting of cab aren't distinguishable; ST is leviable irrespective of who enjoys control over vehicle Renting of cabs is liable to service tax irrespective of whether control over vehicle is of service provider or of service recipient and irrespective of whether it is 'hiring' of cabs or 'renting' of cabs; therefore, supplying vehicles for transportation of papers/answer sheets, examiners, staff etc. on distance travelled basis also amounts to rent-a-cab services [Source: Commissioner of Service Tax v. Vijay Travels [2014] 51 taxmann.com 72 (Gujarat)] Institute providing coaching in mathematics through 'Abacus' was recreational training institute; exempt from ST Imparting coaching in mathematics based on ancient Japanese methods of mathematical calculation with help 'Abacus' amounts to 'recreational training institute' and is exempt from service tax under notification no. 24/2004-S.T., dated 10-9-2004.


[Source: Abacus Brain Study (P.) Ltd. v. Comm. of Cent. Ex. (A), Hybd [2014] 51 taxmann.com 12 (Bangalore - CESTAT)]

Levy of service tax on restaurants and hotel accommodation is unconstitutional, says Kerala High Court Levy of service tax on : (1) service forming part of supply of goods in a restaurant, as well as, (2) short-term accommodation services in hotels, inns, etc. is unconstitutional being violative of Entries 54 and 62, respectively, of State List Under works contract, only 'transfer of property in goods' is liable to VAT/sales-tax, therefore, service portion can be charged to service tax; however, in case of restaurants, entire supply of food (even as a part of service) is deemed to be sale and therefore, consideration therefor cannot be charged to service tax. [Source: Union of India v. Kerala Bar Hotels Association, Cochin [2014] 51 taxmann.com 365 (Kerala)]

Marketing or promotion of products of foreign principal in India would amount to export of service Marketing/Promotion in India of products belonging to foreign principal amount to export of services and is not liable to service tax [Source: Microsoft Corp. (India) (P.) Ltd. v. Comm. of Ser. Tax, ND [2014]51taxmann.com 104(ND - CESTAT) (TM)]

Mere receipt of summons in Calcutta from authorities of Kerala won't give arise to cause of action in Calcutta Where assessee having centralized service tax registration at Kolkata received summons from Central Excise Intelligence, Kerala, no integral part of cause of action arose in Kolkata; therefore, Calcutta High Court did not have jurisdiction to hear writ there against [Source: Magma Fincorp Ltd. v. Assistant Director, DGCEI, Kochi [2014] 51 taxmann.com 108 (Calcutta)]


No ST refund on services used for export unless assessee correlates services with export/import code In order to claim refund of service tax paid on services used for export goods, it is incumbent upon assessee to produce necessary documents before adjudicating authority alongwith invoices indicating IEC number so that activities of export could be correlated with documents and notifications [Source: Heritage Impex Worldwide v. Comm. of Ser. Tax, Delhi-IV [2014] 51 taxmann.com 65(New Delhi - CESTAT)] Penalty had to be waived off if assessee had paid ST even when there was confusion regarding manner of its payment When there was confusion as to manner of payment of tax and assessee had acted honestly by paying service tax, without further delay, on being pointed out, penalties were liable to be waived [Source: Commissioner of Service Tax, Delhi v. Bajaj Travels Ltd. [2014] 51 taxmann.com 106 (SC)]

Prior to 23-8-2007, sub-contractors weren't liable to ST circular levying ST liability was issued thereafter Department had, vide Circular dated 23-8-2007, clarified that sub-contractors are also liable to service tax; therefore, prior thereto, prima facie, there was doubt about taxability of services provided by sub-contractors [Source: K.N.D. Engg. Tech. Ltd. v. Cust., Ex. & Ser. Tax Appel. Trib, Kolkata [2014] 51 taxmann.com 11 (Calcutta)]

Proprietorship firm is also a 'concern' for the purposes of service tax Proprietary organisation is also a "concern" and if it is engaged incommercial activity of security services, it is a commercial concern liable to service tax. [Source: World Wide Security Org. v. Comm. of Cent. Ex., Bhopal [2014] 50 taxmann.com 432 (New Delhi - CESTAT)]

Sale of inputs while providing services amounts to 'removal of input as such'; Cenvat credit to be reversed If, while providing services there is sale of raw materials/inputs, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004 [Source: Aims Industries Ltd. v. Comm. of Cent. Ex. Daman [2014] 50 taxmann.com 434 (Ahmedabad - CESTAT)]

SC transfer various appeals pending before CESTAT benches to full bench to ensure uniform order Supreme Court directed that various cases pending at Bangalore, Hyderabad and other places, be heard together by a Full Bench, presided over by President CESTAT so that in ultimate eventuate, uniform order is passed [Source: IVRCL-JL (JV) v. Comm. of Cent. Ex., Cust. & Ser. Tax, Hyderabad-II [2014] 51 taxmann.com 67 (SC)]


Assessee can use CENVAT credit to pay ST under reverse charge in respect of GTA services Assessee can pay service tax under reverse charge on inputs services of Goods Transport Agency's Services using balance lying in Cenvat Credit [Source: Commissioner of Central Excise & Customs v. Banco Aluminium Ltd. [2014] 51 taxmann.com 175 (Gujarat)]

Welding electrodes used in repair or maintenance of plant and machinery are eligible for credit Repair and maintenance of plant and machinery, though by itself not a manufacturing activity, has to be treated as an activity in relation to manufacture and inputs/welding electrodes used therein are goods used in relation to manufacture and are eligible for credit [Source: Kisan Cooperative Sugar Factory Ltd. v. Commissioner of Central Excise, Meerut-I [2014] 51 taxmann.com 33 (New Delhi - CESTAT)]


COMPANY LAW UPDATES Circular/Notification/Guidance Extension of time for holding Annual General Meeting (AGM) under section 96 (1) of the Companies Act, 2013-Companies registered in State of Jammu and Kashmir In view of the exceptional circumstances, Registrar of Companies Jammu and Kashmir is advised to exercise powers conferred on him under the third proviso to section 96 (1) of the Companies Act, 2013 to grant extension of time upto 31/12/2014 to those companies registered in the state of Jammu and Kashmir who could not hold their AGMs (other than first AGM) for the financial year 2013-14 within the stipulated time. [Source: General Circular No. 45/2014 dated 18th November, 2014] Company Law Settlement Scheme, 2014 (CLASS-2014) In continuation to the Ministry’s General Circular No. 34/2014 dated 12.08.2014 and 40/2014 dated 15/10/2014 on the subject cited above, this Ministry has, on consideration of requests received from various stakeholders, has decided to extend the Company Law Settlement Scheme (CLASS 2014) upto 31st December, 2014. [Source: General Circular No. 44/2014 dated 14th November, 2014] Issue of Foreign Currency Convertible Bonds (FCCBs) and Foreign Currency Bonds (FCBs)- Clarification regarding applicability of provisions of Chapter III of the Companies Act, 2013 The Ministry has been receiving references from stakeholders seeking clarity on applicability of provisions of Chapter III of the Companies Act, 2013 (act) to the issue of Foreign Currency Convertible Bonds (FCCBs) and Foreign Currency Bonds (FCBs) by Indian companies exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions. The matter has been examined in the Ministry in consultation with Ministry of Finance and SEBI. The issue of FCCBs and FCBs by companies is regulated by the Ministry of Finance’s regulations contained in issue of FCCBs and Ordinary shares (through Depository Receipts Mechanism) Scheme, 1993 (scheme) and Reserve Bank of India through its various directions/regulations. It is accordingly, clarified that unless otherwise provided in the said Scheme or the directions/regulations issued by Reserve Bank of India, provisions of Chapter III of the Act shall not apply to an issue of a FCCB or FCB made exclusively to persons resident outside India in accordance with the above mentioned regulations. Clarification on matters relating to the Companies (Cost Records and Audit) Rules, 2014 Ministry of Corporate Affairs (MCA) has decided to extend the date of filing of Form CRA-2 without any penalty/late fee up to 31st January, 2015.Form CAR-2 will be made available on the MCA website soon. It is further clarified that the companies which have filed Form 23C for appointment of Cost Auditor for the financial year 2014-15 need not required to be filed Form CRA-2 afresh for the financial year 2014-15. [Source: General Circular No. 42/2014 dated 12th November, 2014]


The Company Law Board (Fees on Applications and Petitions) Amendment Rules, 2014 In exercise of the powers conferred by section 642 read with sub-section (2) of section 637A of the Companies Act, 1956 (1 of 1956) and the removal of difficulty Orders issued by the Central Government under section 470 of the Companies Act, 2013, the Central Government hereby amends the Company Law Board (Fees on Applications and Petitions) Rules, 1991 and these rules may be called as the Company Law Board (Fees on Applications and Petitions) Amendment Rules, 2014. [Source: Notification No. G.S.R. 772(E) dated 03rd November, 2014]


RBI UPDATES Circular/Notification/Guidance External Commercial Borrowings (ECB) Policy – Parking of ECB proceeds With a view to providing greater flexibility to the ECB borrowers in structuring draw down of ECB proceeds and utilization of the same for permitted end uses, it has been decided to permit AD Category -I banks to allow eligible ECB borrowers to park ECB proceeds (both under the automatic and approval routes) in term deposits with AD Category- I banks in India for a maximum period of six months pending utilization for permitted end uses. The facility will be with the following conditions:

a) The applicable guidelines on eligible borrower, recognized lender, average maturity period, all-in-cost, permitted end uses, etc. should be complied with;

b) No charge in any form should be created on such term deposits i.e. to say that the term deposits should be kept unencumbered during their currency;

c) Such term deposits should be exclusively in the name of the borrower; d) Such term deposits can be liquidated as and when required;

[Source: RBI/2014-15/309 A.P. (DIR Series) Circular No.39 dated 21st November, 2014]


CORPORATE FINANCE

Latest News Private Equity Piramal invests $16M across two projects of Skylark in Bangalore Piramal Fund Management, the real estate private equity arm of Piramal Group, has invested Rs 100 crore ($16 million) across two projects of Bangalore-based developer Skylark [Source: VCCircle, Nov 27, 2014] WestBridge invests $16M in housing finance company Aptus Value Private equity investor WestBridge Capital Partners has closed its Rs 98 crore (around $16 million) investment in equity in Chennai-based affordable housing finance company Aptus Value Housing Finance, according to a press release. The investment was made through its WestBridge Crossover Fund. [Source: VCCircle, Nov 27, 2014] Shishir Bajaj Group sells 8% in FMCG co Bajaj Corp to Temasek for $52M Shishir Bajaj Group which broke off from the rest of Bajaj family a few years ago, has sold a small stake in its flagship group firm Bajaj Corp for a little over Rs 320 Crore ($52 million) to Singapore's sovereign wealth fund Temasek. This brings down the promoter holding in Bajaj Corp from 75 per cent to 67 per cent. [Source: VCCircle, Nov 25, 2014] Reliance AIF, IndoStar Capital put in $32M in Alliance’s Chennai project Bangalore-headquartered real estate player Alliance Infrastructure Projects Pvt Ltd has raised Rs 200 crore ($32 million) from Reliance AIF Asset Management and IndoStar Capital Finance through senior secured non-convertible debentures [Source: VCCircle, Nov 20, 2014] Broadband services provider Tikona raises $45M from IFC, existing investors Mumbai-based broadband services provider Tikona Digital Networks Pvt Ltd has raised $45 million in a fresh round led by World Bank's private sector investment arm International Finance Corporation (IFC) with participation of its existing investors. [Source: VCCircle, Nov 20, 2014] Reliance AIF invests $16M in Fortuna's Bangalore project Viva Bangalore-based developer Fortuna Projects has raised Rs 100 crore ($16 million) from Reliance AIF. This marks one of the first few deals of Reliance AIF which hit first close at $65 million recently. [Source: VCCircle, Nov 13, 2014] Amplus Capital invests $6M in North Bangalore project of Jain Heights Real Estate focused private equity firm Amplus Capital Advisors has backed an upcoming residential project of Bangalore-based developer Jain Heights. The firm has put in Rs 36.8 crore ($6 million) at


special purpose vehicle (SPV) level for the upcoming residential project of the developer located in North Bangalore. The proceeds will be used by the developer to fund purchase of land. [Source: VCCircle, Nov 11, 2014] BanyanTree invests in Kolkata's hospital firm GPT Healthcare GPT Healthcare Pvt Ltd, a Kolkata-based company which operates a chain of hospitals, has raised an undisclosed amount in private equity funding from BanyanTree Growth Capital, [Source: VCCircle, Nov 11, 2014] Temasek buys 10.16% stake in Intas Pharma from ChrysCapital Singapore’s sovereign fund Temasek has bought 10.16 per cent stake in Intas Pharmaceuticals Ltd from PE firm ChrysCapital, for an undisclosed amount by way of a secondary PE deal [Source: VCCircle, Nov 10, 2014] Amtek Auto's international business arm raising $293M in debt funding from KKR Amtek Global Technologies, Singapore-based arm of Indian automobile parts maker Amtek Auto Ltd, has signed definitive agreement with alternative assets manager Kohlberg Kravis Roberts & Co (KKR) for a long-term loan facility of €235 million (around $293 million) to replace its existing bridge loan and consolidate all of the company's existing debt. [Source: VCCircle, Nov 10, 2014] Temasek invests around $45M in Mahindra & Mahindra's NBFC arm Temasek, one of the two sovereign wealth funds of Singapore, has picked up a minority stake in Mahindra & Mahindra Ltd's (M&M) non-banking finance company Mahindra & Mahindra Financial Services Ltd (MMFSL) [Source: VCCircle, Nov 05, 2014]


Merger & Acquisition Online grocery store EkStop in talks with Godrej, Birlas & an e-com firm for a merger Mumbai-based Buy Daily Retail Pvt Ltd., which runs online grocery and daily essentials shopping store ekstop.com along with Ekstop Shop Pvt Ltd, is in advanced talks with four companies including offline retail ventures run by business houses for a possible merger. [Source: VCCircle, Nov 28, 2014]

Avantha Group sells 8.3% in Crompton Greaves for $162M Avantha Holdings, the privately held holding company of Gautam Thapar-led Avantha Group, has sold 8.3 per cent or a fifth of its 42.67 per cent stake in the group's most valuable asset, public listed engineering company Crompton Greaves for Rs 1,001.57 Crore ($162 million) on Thursday. [Source: VCCircle, Nov 27, 2014] Cloud solutions firm 8K Miles buys electronic health record co SERJ California-headquartered cloud solutions provider 8K Miles Software Services Ltd has acquired SERJ Solutions, which provides electronic health record (EHR) consulting, custom applications and support solutions, for an undisclosed amount. [Source: VCCircle, Nov 27, 2014] Rane Holdings hikes stake in Bangalore-based aerospace component maker SasMos to 45% Rane Holdings, the public listed holding company of Chennai-based auto component manufacturer Rane Group, has hiked its stake in Bangalore-based SasMos HET Technologies Ltd to 45.24 per cent, as per a stock market disclosure. [Source: VCCircle, Nov 26, 2014] Panacea Biotec plans to sell hospital in Gurgaon Panacea through its subsidiary NewRise Healthcare Pvt Ltd is setting up a hospital in Gurgaon and has invested around Rs 50 crore on the project to date. The project has also been part-funded by way of secured loan of Rs 101 crore from Bank of Baroda. The project could not be completed due to shortage of funds. [Source: VCCircle, Nov 26, 2014] PE-backed KIMS acquires majority stake in Al Shifa Hospital in Kerala Thiruvananthapuram-based Kerala Institute of Medical Sciences (KIMS) has acquired Al Shifa Hospital located at Perinthalmanna in north Kerala as part of its inorganic expansion, as per a company release.The deal value was not disclosed but a company spokesperson said it involves acquisition of 51 per cent stake at an enterprise value of Rs 300 crore (under $50 million). The debt level and hence the transaction value could not be ascertained. [Source: VCCircle, Nov 25, 2014]


Nissan buys 38% in Ashok Leyland's engineering services arm Hinduja Tech Hinduja Group flagship Indian company Ashok Leyland Ltd, the second largest commercial vehicle maker in the country, has sold 38 per cent equity holding in its wholly-owned subsidiary firm Hinduja Tech Ltd to a strategic investor through fresh issue of securities, it said in a stock exchange disclosure. The company however did not reveal the name of the strategic investor and the amount for which the stake has been sold. [Source: VCCircle, Nov 25, 2014] Narayana Health acquires Howrah's Westbank Hospital for $24M Devi Shetty-promoted Narayana Health (formerly known as Narayana Hrudayalaya) has acquired Westbank Hospital in Howrah, West Bengal, for Rs 150 crore ($24.27 million), the company said in a release. This is the second acquisition by Narayana Health Group in West Bengal this year after it acquired Jubilant’s hospital business in Barasat & Berhampore in March. [Source: VCCircle, Nov 25, 2014] Papa John's acquires Pizza Corner chain Om Pizza & Eats Pvt Ltd, the Indian master franchisee of global pizza chain Papa John’s, has acquired bigger local rival and the arguably the third-largest pizza chain in India Pizza Corner, for an undisclosed amount. [Source: VCCircle, Nov 25, 2014] Milk Mantra acquires Westernland Dairy for $1.6M Dairy startup based in Odisha Milk Mantra Dairy Pvt Ltd has acquired Sambalpur-based Westernland Dairy Pvt Ltd for about Rs 10 crore (about $1.6 million), The Economic Times reported citing Milk Mantra's managing director and chief executive Srikumar Misra. [Source: VCCircle, Nov 24, 2014] Mahyco picks up 60% stake in Zimbabwean seed firm Quton Leading agri-biotech company Maharashtra Hybrid Seeds Company (Mahyco) today said it has acquired 60 per cent interest in a Zimbabwe-based seed firm, Quton Seed Company, for an undisclosed sum. Quton is the largest cotton seed company in Africa with presence in Zimbabwe, Malawi and Tanzania. [Source: VCCircle, Nov 24, 2014] Urban Ladder acqui-hires curated marketplace for furniture & home decor BuyNBrag Bangalore-based Urban Ladder Home Decor Solutions Pvt Ltd, the company behind the online furniture shop Urban Ladder, has acqui-hired BuyNBrag.com, a curated online marketplace for furniture and home decor, from Gurgaon-based Social Scientist E-commerce Pvt Ltd. [Source: VCCircle, November 21, 2014] Ahmedabad-based Hester Biosciences acquires Gujarat Agrofarm Ahmedabad-based Hester Biosciences Ltd, a poultry vaccines manufacturing company, has acquired Gujarat Agrofarm Ltd for Rs 0.52 crore, as per a stock market disclosure.


[Source: VCCircle, November 21, 2014] Future Consumer buys Actis-controlled Nilgiri's convenience stores chain Future Consumer Enterprise Ltd (FCEL), the food and FMCG arm of Kishore Biyani-led Future Group, has acquired convenience stores chain Nilgiri's run by The Nilgiri Dairy Farm Pvt Ltd in south India for an undisclosed amount. It has acquired 97.97 per cent stake of The Nilgiri Dairy Farm and its subsidiary companies as part of the transaction. [Source: VCCircle, November 21, 2014] Kotak Mahindra to buy ING Vysya Bank in $2.4B all-stock deal Kotak Mahindra Bank and ING Vysya said in a joint statement on Thursday that their boards have approved a merger through an all stock transaction worth over $2.4 billion. [Source: VCCircle, November 20, 2014] IndiaHomes.com acquires UK-based property advisory firm Unesta for $2M Gurgaon-based India World Technologies Pvt Ltd, the company behind the real estate broking portal IndiaHomes.com, has acquired UK-based Unesta Homes Ltd, which offers residential sales, property management and commercial investment services to non-resident Indians (NRIs) and persons of Indian origin (PIOs), in a deal worth $2 million. [Source: VCCircle, November 20, 2014] Indiabulls buys office park in Chennai for close to $100M Indiabulls Distribution Services Ltd, a subsidiary of Indiabulls Securities Ltd, has bought a commercial complex measuring 10 acres in Chennai for Rs 600 crore ($97 million). [Source: VCCircle, November 19, 2014] Rocket Internet-backed Foodpanda buys online food ordering venture TastyKhana Foodpanda.com, a Rocket Internet-backed global, multi-location online food ordering marketplace (which operates under Hellofood brand in some markets) with operations in 40 countries including India, has acquired domestic rival TastyKhana.in from Pune-based Trinket Info Services Pvt Ltd, for an undisclosed amount. [Source: VCCircle, November 17, 2014] JSW Energy signs deal to buy Jaypee's hydro power assets for $1.57B Sajjan Jindal-led JSW Energy has agreed to acquire two of the three hydroelectric projects of Jaiprakash Power Ventures Ltd (JPVL) in Himachal Pradesh at an enterprise value of about Rs 9,700 crore (approximately $1.57 billion), in one of the biggest infrastructure M&A deals in the country to date. [Source: VCCircle, November 17, 2014] Warren Buffett swapping $4.7B P&G stake to acquire its battery unit Duracell US-based Berkshire Hathaway Inc, the firm run by billionaire value investor Warren Buffett, has agreed to acquire consumer products company Procter & Gamble Co's (P&G) Duracell battery business in an innovative tax efficient split transaction. [Source: VCCircle, November 14, 2014]


Ant Farm getting into local delivery business, buys Mumbai's Meals on Wheels for $2M Mumbai-based hybrid startup incubation platform Antfarm Business Incubator Pvt Ltd (Ant Farm) has acquired city-based food delivery venture Meals on Wheels, run by Meal O Wheel Pvt Ltd, in a stock-and-cash deal worth Rs 11-15 crore ($1.7-2.4 million) [Source: VCCircle, November 13, 2014] Widjaja family promoted Golden Agri buying 75% stake in Ruchi Soya arm for $25.6M Singapore-based Golden Agri-Resources, the world's second-largest palm oil plantation company promoted by Indonesian billionaire Widjaja family, has inked a deal to buy 75.02 per cent stake in Gemini Edibles and Fats India (GEFI) for $25.6 million, it said on Wednesday [Source: VCCircle, November 12, 2014] Mumbai Angels- and YourNest-backed BookMyCab acquires CabonClick in Hyderabad Mumbai-based LiveMinds Solutions Pvt Ltd, the company behind the online cab booking service BookMyCab.com, has acquired CabonClick.com, another online cab booking venture focused on Hyderabad and surrounding areas, from ASPM Mobility Ventures Pvt Ltd. The transaction details remain undisclosed. [Source: VCCircle, November 11, 2014] Keywords buys video game development services provider Lakshya Digitalfor $4M Dublin-headquartered Keywords Studios Plc, which provides technical services to the global video games industry, has acquired outsourced Gurgaon-based art services provider for the video games industry Lakshya Digital Pvt. Ltd for $4 million (Rs 25 crore). [Source: VCCircle, November 11, 2014] Times Internet acquires cricket news portal Cricbuzz.com Times Internet Ltd, the digital arm of BCCL (parent of The Times of India and a host of other news properties), has acquired cricket news and information portal Cricbuzz.com from Bangalore-based Akuate Internet Services Pvt Ltd. Post acquisition, Cricbuzz will be merged with Times Internet’s cricket news portal GoCricket. [Source: VCCircle, November 10, 2014] Johnson & Johnson acquires Jagdale's electrolyte drink brand ORSL Global healthcare products major Johnson & Johnson (J&J) has acquired the ORSL ready-to-drink electrolyte brand from Jagdale Healthcare, as per a press release. Financial details of the aforesaid transaction however remained undisclosed but media reports pegged the transaction value at around Rs 700-750 crore, citing sources. [Source: VCCircle, November 10, 2014]


GVK Biosciences buying pre-clinical contract research firm Vanta Contract research firm GVK Biosciences Pvt Ltd, which operates under the GVK BIO brand, has signed a definitive agreement to acquire Vanta Bioscience for an undisclosed amount, as per a press release. [Source: VCCircle, November 06, 2014] Associated Stone buys UAE-based limestone quarry & stone crusher Al Rawasi for $6M Mumbai-based stone mining firm Associated Stone Industries Kotah Ltd through its Mauritius-based subsidiary ASI Global Ltd (ASIGL), has acquired Al Rawasi Rocks and Aggregates LLC, Fujairah UAE, for $5.9 million, the company said in a stock market disclosure. [Source: VCCircle, November 05, 2014] Warburg Pincus-backed QuEST buys engineering services business of NeST Group Bangalore-based QuEST Global Engineering Pvt Ltd has acquired NeST Software Pvt Ltd, an engineering and embedded services arm of Kochi-based NeST Group, for an undisclosed amount, the company said in a release. [Source: VCCircle, November 04, 2014]

Venture Capital Online local services delivery venture Delyver raises over $1M in funding Bangalore-based Delyver Retail Network Ltd, the company behind Delyver.com, an online platform that connects offline retailers with customers in a neighbourhood, has secured over Rs 6.5 crore (over $1 million) in funding from an undisclosed VC fund based out of the city. The startup will use the funds to expand operations to 20 cites by next year, its co-founder Afsal Salu told VCCircle. [Source: VCCircle, November 28, 2014]


Aavishkaar exits consulting & training services co for the disabled N-syst; nets 3x Social venture investor Aavishkaar has exited its nine-year-old investment in Net Systems Informatics (India) Pvt Ltd, which provides knowledge management besides training and other services to bring accessibility for the disabled [Source: VCCircle, November 28, 2014] Landmark IT’s online coupons venture GrabOn grabs $250K funding GrabOn, an online coupons and deals venture launched by Hyderabad-headquartered e-commerce products company Landmark IT Solutions (LMIT), has secured $250,000 in funding from an unnamed high net-worth individual (HNI) in the US, a top executive of LMIT told VCCircle. [Source: VCCircle, November 28, 2014] Sequoia buying 33.3% stake in dermatology firm Curatio Healthcare Venture capital firm Sequoia Capital is picking 33.36 per cent stake in Curatio Healthcare (I) Pvt Ltd, a Chennai-based healthcare venture. This would be one among a dozen odd deals by the VC firm in the larger healthcare domain but one among a handful in the products or pharma space. [Source: VCCircle, November 28, 2014] IAN backs IoT-based energy management solutions startup LoudCell Indian Angel Network (IAN), a national network of angel investors that invests in startups and early-stage ventures, has invested an undisclosed amount in Delhi- and US-based LoudCell Inc., a startup that develops solutions to save diesel cost and reduce wastage/inefficiency for diesel generators in India and other emerging economies. [Source: VCCircle, November 27, 2014] Discovery engine for hobby class seekers FindURClass gets angel funding Mumbai-based FindURClass Pvt Ltd, the company behind FindURClass.com, an online search and discovery platform that connects class seekers of extracurricular activities and hobbies to educators, has received an undisclosed sum in funding from VentureNursery’s angels [Source: VCCircle, November 27, 2014] Lightbox commits fresh money to PayMate's planned $30M funding round Mumbai-based PayMate India Pvt Ltd, which provides B2C mobile payments solutions, is retuning its focus to provide B2B solutions to the small and medium businesses (SMBs) in India, a top executive of the firm told VCCircle. [Source: VCCircle, November 26, 2014] Payments solutions firm Oxigen Services in talks to raise $50M funding Gurgaon-based payments solutions provider Oxigen Services India Pvt Ltd is in advanced talks to raise $50 million in fresh funding from a mix of strategic and PE investors, besides multi-national agencies, a top executive of the company told VCCircle. [Source: VCCircle, November 25, 2014]


Doctor appointment booking site Qikwell raises $3M from SAIF Bangalore-based Qikwell Technologies Pvt Ltd, the company behind the online doctor appointment platform Qikwell, has secured $3 million (over Rs 18 crore) in funding from multi-stage private investment firm SAIF Partners, according to a report by The Economic Times, quoting its co-founder Raghavendra Prasad. [Source: VCCircle, November 24, 2014] Online designer jewellery marketplace Velvetcase gets $1M from Chennai Angels Mumbai-based Bodhi Brands Pvt Ltd, the company behind the online designer jewellery marketplace Velvetcase.com, has secured $1 million (over Rs 6 crore) in funding from The Chennai Angels (TCA), with participations from Arihant Patni, co-founder of Nirvana Venture Advisors; and Jacob Kurian, partner at New Silk Route Advisors; and Jerry Rao; former CEO of MPhasiS. [Source: VCCircle, November 24, 2014] CADashboard in talks to raise up to $2M in VC funding Pune-based IT services and consulting firm, MindChipps Consulting Pvt Ltd, which is behind a web-based dashboard connecting chartered accountants, company secretaries and tax professionals with their clients under CADashboard.com, is in talks to raise up to $2 million (Rs 12.5 crore) in venture capital funding, a top executive of the firm told VCCircle. [Source: VCCircle, November 21, 2014] MadRat Games grabs $1M funding from co-founders of Flipkart and GlobalLogic Bangalore-based offline gaming products startup MadRat Games Pvt Ltd has secured $1 million (around Rs 6.2 crore) in funding from a clutch of investors, including Sachin Bansal and Binny Bansal (not related), co-founders of home-grown e-commerce giant Flipkart.com. Other investors who participated in the round are Pine Labs, a provider of payments, loyalty and retail automation solutions, besides Rajul Garg, Sanjay Singh, Manoj Agarwala and Tarun Upadhyay -- founders of GlobalLogic. [Source: VCCircle, November 20, 2014] Tea e-tailer Teabox raising up to $7M in Series A; Accel buys out Horizen's stake Bangalore- and Singapore-based AsianTeaxpress Pte Ltd, which runs the speciality tea e-tailer Teabox.com, is in advanced talks with four international funds to raise $5-7 million in its Series A round of funding, its founder Kaushal Dugar told VCCircle. [Source: VCCircle, November 19, 2014] Data backup solutions firm SysCloud raises $2.5M from Inventus, Kae Capital US- and Chennai-based SysCloud, Inc., which provides data backup and disaster recovery solutions to enterprises, has secured $2.5 million in its Series A round of funding led by Inventus Capital Partners, with participation from existing investor Kae Capital. [Source: VCCircle, November 18, 2014]


Property management system for hotels Hotelogix gets $1.8M from Accel, Saama Capital Noida-based HMS Infotech Pvt Ltd, which owns and operates Hotelogix, a SaaS-based property management system (PMS) for small and medium scale hotels, has secured $1.8 million in fresh funding from existing investor Accel Partners, with participation from Bangalore-based early-and-growth-stage VC fund Saama Capital. [Source: VCCircle, November 14, 2014] T-shirt design crowd-sourcing platform VoxPopClothing gets $1M from Blume, others Mumbai-based 21 Trends Pvt Ltd, the company behind VoxPopClothing, a community-driven platform to crowd-source t-shirt designs by individuals across the country, has secured $1 million in bridge funding from existing investor Blume Ventures, with participations from a few other unnamed investors. [Source: VCCircle, November 14, 2014] On-demand logistics services startup Blowhorn gets funding from Unitus Seed Fund, others Bangalore Blowhorn Ltd, the startup behind Blowhorn, an online marketplace for last mile logistics services, has received an undisclosed amount in seed funding from impact investor Unitus Seed Fund, with participation from Tim Draper, founder and managing partner of Draper Associates. [Source: VCCircle, November 13, 2014] Data centre solutions firm Arkin Net raises $7M from Nexus, others Pune- and California-based Arkin Net Inc., a provider of data centre solutions for enterprises, has secured $7 million in funding led by Nexus Venture Partners. The round also saw participations from BV Jagadeesh, former CEO of NetScaler; Alan Cohen, chief commercial officer of Illumio; and Semil Shah of Haystack Fund. [Source: VCCircle, November 13, 2014] Travel startup Tripoto raises $400K from Outbox Ventures, Palaash Ventures & others Delhi-based Tripoto Travel Pvt Ltd, which owns and operates Tripoto.com, a platform that enables users to crowd source travel itineraries and share their experiences, has raised $400,000 (Rs 2.46 crore) in seed funding led by Outbox Ventures. Palaash Ventures, a Delhi-based early-and-growth-stage VC fund also participated in the round. [Source: VCCircle, November 13, 2014] Sports365 to raise over $1M in bridge funding round ahead of up to $8M in Series A Live Sports 365 e-retail Pvt Ltd, the Bangalore-based company behind the online store specialising in sports goods and fitness equipment, Sports365, is set to raise a little more than $1 million in a bridge funding round. [Source: VCCircle, November 11, 2014]


Fashion news portal POPxo.com gets under $500K from Rajan Anandan, others Luxeva Ltd UK, the company behind POPxo.com, a digital publication for women’s fashion, beauty and lifestyle, has secured Rs 3 crore (just under $500,000) in funding from a group of investors, including Google India chief Rajan Anandan and CaratLane.com’s Mithun Sancheti, who invested through Chennai Angels. [Source: VCCircle, November 07, 2014] Mobile dating venture Vee raises $1M in pre-Series A funding from Lightspeed GetVee Technologies Pvt Ltd, a mobile-based dating venture launched by Nitin Gupta, founder of Coinjoos, an e-commerce platform that was acquired by HomeShop18.com in 2011, has received $1 million in its pre-Series A round of funding from Lightspeed Venture Partners, an early- and growth-stage VC fund. [Source: VCCircle, November 07, 2014] Online recharge & mobile wallet co MobiKwik close to raising up to $30M Gurgaon-based One MobiKwik Systems Pvt Ltd, which runs online recharge platform and mobile wallet venture MobiKwik.com, is in advanced talks with more than three large VC funds in India, Southeast Asia and the US to raise $20-30 million in a Series B round of funding. [Source: VCCircle, November 06, 2014] Cbazaar.com raises Series B funding from Forum Synergies, Inventus & Ojas Chennai-based Fashionista Retail Pvt Ltd, which runs Indian ethnic wear e-com site Cbazaar.com focused on the international market, has secured an undisclosed amount in its Series B round of funding led by Indian private equity fund manager Forum Synergies. Existing venture capital investors Inventus Capital Partners and Ojas Venture Partners also invested in the round. [Source: VCCircle, November 05, 2014] Job search portal Wisdom Jobs in talks to raise $6.5M from Gaja Capital, Helion Hyderabad-based Wisdom IT Services India Pvt Ltd, which runs the online job search portal Wisdom Jobs is in talks to raise Rs 40 crore ($6.5 million) in its Series A round of funding from Gaja Capital and Helion Venture Partners. [Source: VCCircle, November 04, 2014] Test prep site Testbook raises under $250K from LetsVenture, ah! Ventures, others Mumbai-based Share Infotech Pvt Ltd, the company behind Testbook.com, an online test preparation platform for competitive exams like GATE and CAT, has secured Rs 1.5 crore (under $250,000) through LetsVenture, an online platform to connect startups with accredited investors, and ah! Ventures, the angel network of Club Ah!. [Source: VCCircle, November 03, 2014]


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