PAGE 1TMILLAN / MAY 2012

/ TMILLAN / 8th EDITION / MAY 2012

Dear Colleague,

Few of us realized that TMILL has crossed a chronological milestone this year i.e. completed its tenth year of existence on 18th January on which it was founded a decade back. While the tenth anniversary does not

call for a commonly established metallic celebration i.e. it does not have a precious name plating like silver, gold or platinum, I am sure this milestone will propel us to look more positively towards the future and grow at an attractive rate. (The dictionary / internet will tell you of the tenth anniversary as the ‘tin’ jubilee – but have you ever heard of it ? )

In the initial period of this decade, we could take advantage of the low hanging fruits and therefore fanned out to different verticals either through agglomeration of erstwhile divisions of Tata Steel or through active expansion mindsets. For the past few years there has been a pause both on the top line as well as the bottom line and probably the time has come when we need to take a ‘Wave 2’ of expansion schemes either to adjacent verticals or grow organically in the current ones. An organization remains naturally energetic if it continuously grows at a healthy rate and I am sure with the plans which we have, we should be able to bring this ‘Wave 2’ into early fruition.

Coming back to the just finished year, while we have managed to ward off some difficulties which the market and other factors brought in, overall our top and bottom lines remain more or less at the same level. Poor iron ore traffic and a mishap in the Harbour Mobile Crane brought the figures of the Indian port operations down significantly and had it not been for the Freight Forwarding and Shipping businesses compensating, we would probably have had a downward trend. Last year saw our consolidation with our Dhamra port operations and also the signing of a new terminal facility in the port of Sohar. I trust both these new areas will gain strength in the coming year.

Many of our businesses are ‘hunters’ rather than ’farmers’ and this strength helps us to compensate for any losses happening in our standard ‘farming’ business. I presume that we will

Page 2 >Events----------------------------------------------Page 3 > News from SBU’s----------------------------------------------Page 4 > Safety----------------------------------------------Page 5 > From the HR Desk----------------------------------------------Page 6 > Employee Corner----------------------------------------------Page 12 > Congratulations----------------------------------------------Page 14 > Condolence----------------------------------------------Page 14 > Corrigendum----------------------------------------------Page 14 > New Joinees----------------------------------------------Page 15 > Puzzle

MESSAGE FROM MD CONTENTS

be able to sustain this hunting spirit so that not only we compensate, but also aggressively improve and increase our tribe. But inspite of our efforts, often the effect of a tottering global economy are difficult to disregard and therefore the best practice is always to live within one’s means. While we embark on a new year’s business plan, please ensure that wastages at every step is minimized and we do not exhibit profligacy at any stage of our business plans.

TMILL has improved its focus in the journey of Safety Excellence and with the help of Corporate Safety of Tata Steel we are endeavouring for a professional approach and robust process in this area. The new safety team under Mr. Robin Pramanik will be visiting you in all areas, but this unit will only be of an enabling and support service – the initiative and attitude on safety is the responsibility of all of us. Let us not wait for an emergency to happen. Let us take steps and drills so that we are prepared now itself to combat any emergent situation.

Wishing all of you a very effective FY 13.

PAGE 2TMILLAN / MAY 2012

EVENTS

The 7th Edition of TMILL Invitational Golf Tournament was held on Saturday,4th February’12 at Tollygunge Club, Kolkata. The occasion witnessed the participation of about hundred dignitaries from India and across the world. The event has grown from strength to strength over the years and has become a platform for corporate networking in the shipping and logistics industry. Mr. M. L. Meena, Chairman, Kolkata Port Trust inaugurated the annual event with the first tee-off. Mr. Partha Sengupta, Chairman, TMILL and Mr. Dibyendu Bose, Managing Director, TMILL, lent their continuous support

A Cricket Match between the Port Owners (Haldia Dock Complex) and Port Users (SAIL, Mitsubishi and TMILL) was played in Haldia on 19th February ‘12. The TMILL team was represented by Mr. Arindam Gupta, Mr. Atanu Basu, Mr. Deep Chandra, Mr. D. Samanta and Mr. A. K. Nanda. Other employees from TMILL Haldia as well as members of the TMILL family from Kolkata office flocked in to cheer the team. The Port Users team won the exhibition match whereas the Port Owners team won the Finals in what turned out to be a nail biting end.

Team TMILL, comprising of employees and associates, won the runners up shield for the First Corporate Cricket Tournament at Haldia conducted in the month of March ‘12. We won the first two matches defeating Exide and IOC Petronas to reach the quarter finals. Team TMILL then won the semifinal match against Five Star Group, who put up a tough fight. The final was played between IOC and TMILL wherein Team TMILL secured the runner up trophy missing the spot by a mere 8 runs.

GOLF CRICKET MATCH AT HALDIA BETWEEN PORT OWNERS & PORT USERS

FIRST CORPORATE CRICKET TOURNAMENT AT HALDIA

in making the event a grand success. Mr. Sanjeev Mehra,GM Projects, CESC Infrastructure, won the overall tournament championship & Mrs. Sonia Barman was the winner for the ladies category. Mr. Martin Verbrugge, MD, Verbrugge Zealand Terminals & Mr. Randy Teo Kekboon, Director ECL (Singapore) Pte. Ltd. were the winner & the runners up respectively in the Overseas Participants category. Mr. Partha Sengupta, Chairman TMILL along with Mrs. Rajasi Bose felicitated the winners with trophies.

Team TMILL gearing up for the tournament

Mr. Sanjeev Mehra receiving the overall winner award from Chairman TMILL

PAGE 3TMILLAN / MAY 2012

ANNUAL PICNIC OF TMILL

The Annual Picnic of TMILL Kolkata was held on the 14th of January in the picturesque location of Mooncity, Kolkata. Employees of TMILL, TKM and TMHSPL, Kolkata along with their families made it a fun-filled occasion with more than 160 people attending the same.  Games such as ‘Hit the Wicket’,

‘Bucket the Ball’ and ‘Mouth the Candy’ were organized. Both children and adults wholeheartedly participated in the events including MD, TMILL who even won the runner-up award in ‘Hit the Wicket’. A cricket match and a number of boat rides were followed by foot-tapping music and dance session. A sumptuous lunch and the prize distribution ceremony wound up the highly enjoyable Annual Picnic for the year 2012.

EVENTS NEWS FROM SBU’S

We congratulate the Dhamra team for a record Discharge of 98,119 MT of non coking coal within 24 hours from MV. Alpha Friendship on 28th March’ 12. The effort of team Dhamra is commendable and we wish them all luck for many more such milestones to come.

On 31st March 2012, TKM India created a history of sorts by airlifting 38 tons of plastic moulding machinery from Mumbai International Airport to Sabiha Gokcen International Airport in Turkey.

The consignment was unusual. All packages consisting over-dimension cargo had to move together on a single flight. Owing to the lack of direct flight services to the Sabiha

One of the biggest problems of this century is climate change, a phenomenon that is occurring at a pace and intensity so rapid that it threatens the very existence of our planet and us, as a species. It is imperative that we arm ourselves with information on what climate change is and what we can do in our own small ways to make a difference. As a part of the Climate Change Initiative, ISL, has taken some steps to measure the Carbon Footprint and mitigate the extent of Carbon emissions:

� Speed Reduction: ISL had performed on slow speed on some of its chartered Vessels to ensure a reduced level of Carbon emission.

� Underwater Hull cleaning: ISL had undertook an Underwater Hull cleaning process for one of its chartered vessel owing to long stay, which in turn assisted in better performance of the vessel & also effected a reduction in the Carbon emissions

� Fuel supplier selection: All Bunker supplies have been routed from reputed bunker suppliers around the globe; thus ensuring elimination of substandard/off spec products not in compliance with international standards.

� Voyage routing services: ISL also employed internationally recognised weather routing services to assist the vessels to use shortest routes possible (according to the prevailing weather patterns). This helped in reducing the fuel consumption for the voyages and hence the emissions were also limited to a certain extent.

PORT OPERATIONS : RECORD DISCHARGE AT DHAMRA

TKM MUMBAI : OUT OF THE BOX AIR LIFTING SOLUTION

ISL : GREEN INITIATIVE

PAGE 4TMILLAN / MAY 2012

NEWS FROM SBU’S

TKM had organized a Vendor Meet at Tuticorin on 22nd February 2012 ,which was well attended by the delegates from the Shipping Lines & CHA Houses. Representatives from various Shipping Lines namely: Pacific Interanational Line, ZIM Line, Evergreen Line, OOCL etc. were present. Also,other Vendors like PSTS, Villavarayar were also well represented.

Mr. Juzar Mustan, Country Head, TKM Global,chaired the meet. Apart from the officials of TKM, the representatives from the Tuticorin trade desk participated as well. Mr. Govindasamy,

TKM -TRADE MEET AT TUTICORIN

Gokcen International Airport; the best available option was an Air-Road multi-modal movement via Paris. But it came at a prohibitive cost – unacceptable to the Shipper.

It was figured that an air charter was the best method to move this freight. Finding a carrier and an aircraft of this capacity was a challenge. However, a Russian-made Ilyushin Transport Airplane Type IL-76 was identified as available and a door-to-door transportation plan was conceived.

Soon after receiving the freight order, TKM’s Mumbai team reinforced the plan. The team visited the Shipper’s factory site, recorded the consignment’s physical characteristics and prepared a detailed plan which elaborated on loading/unloading (with special heavy lift cranes), sourcing of 40’ trailers, export documentation formalities, customs clearance and mapped the liaisoning thereby required with the carrier. They also chalked-out a similar last mile delivery detail plan with the preferred overseas partner- agent in Turkey.

By 15:00 hours on 31st March, the consignment was fully cleared for loading on-board and in less than 4 hours the entire operations was completed. The flight took off without any veritable delay, landed as per schedule at its destination and the final delivery to Consignee’s door was completed the day after. The entire project was calibrated by the smooth end to end detailing and effective execution & adherence to the conceived Logistics plan and the Shipper’s nod of approval was another feather in TKM’s cap.

Branch Manager, TKM Chennai welcomed the gathering.

Speaking on this occasion Mr. Mustan stated that the company accorded a very high value to “Partnership”- he added that TKM believes in long-term partnerships & a dual profitability approach to trade growth amongst partners.

SAFETY

TMILL is continuously striving to achieve excellence in safety in all its business areas with a major emphasis in the ports. To take the initiative further, a Safety Audit was conducted in Dhamra by Corporate Safety, Tata Steel on 30th and 31st January 2012. The Audit Report was circulated to the concerned parties. The representatives of Corporate Safety met MD, TMILL in person to discuss the short term and long term action plans for ensuring a safe working environment at TMILL. Additionally, an Apex Safety Council along with Apex Safety Sub committees are being formed to improve the Safety Management Systems of TMILL. Mr. Robin Pramanik has been appointed as Chief Corporate Safety w.e.f. 01.04.2012 in an effort to streamline safety initiatives at TMILL.

A training programme on “Safety for Plant Manager” was conducted by Corporate Safety, Tata Steel from 22nd to 24th March 2012 in Kolkata and Haldia. This was done in an effort

SAFETY INITIATIVES

SAFETY TRAINING

PAGE 5TMILLAN / MAY 2012

FROM THE HR DESK

TOWNHALL MEETING

A town hall meeting is an American English term given to an informal public meeting. There are no specific rules or guidelines for holding a town hall meeting. They are especially effective in case of companies which employ a large number of staff in dispersed locations - who do not have the opportunity to interact with the Senior Leadership on a daily basis. TMILL, being of a similar structure, the objective of the meeting was to give as many people a possible opportunity to speak to the

SLT & voice their concerns, views and opinions. TMILL’s first Town Hall Meeting was conducted on 3rd February 2012 at the 17th Floor Auditorium at Tata Centre, Kolkata. MD and the SLT attended the same with employees from other locations joining in through Audio Conferencing. A number of issues were highlighted & discussed in the meeting & the medium seemed to click with the employees. In the current context, there is no medium of communication better than a mass address & therefore it was decided to conduct the Townhall meeting on a bi-annual basis.

HRIS GO LIVE

SAFETY

Safety has always been of prime importance for the TMILL Group. The National Safety Day was celebrated at Tata Centre, Kolkata & across various Port Locations on 4th March 2012 wherein employees took the Safety pledge and participated in various Safety related events such as Safety Quiz and Best Safety Slogan. The Senior Leadership Team (SLT) including MD,

THE NATIONAL SAFETY DAY CELEBRATION

to build competency amongst the senior leaders and line managers regarding safety. The programme witnessed the participation of MD, TMILL along with some of the members of the senior leadership team as well as line managers from the port locations. This was the second time that such a training programme had been conducted following the success of the first “Safety for Plant Manager” training session held in Jamshedpur in August 2011.

TMILL took part in this initiative to increase safety awareness across the workforce. At Dhamra, TMILL, along with DPCL celebrated the National Safety Day with huge participation. Various competitions related to Safety were organised wherein TMILL employees participated and won prizes. It was also celebrated at Berth No.12, Haldia where employees took the Safety Pledge and discussed various Safety Issues.

The HRIS portal ‘ITMATTERS’ went live on 1st January ‘12 in TMILL, Tata Centre. The portal was inaugurated by MD, TMILL, who was the first user to log in. Other locations were also

PAGE 6TMILLAN / MAY 2012

EMPLOYEE CORNER

Any rice-eating, Maa Kali-fearing Bengali would swear by three tourist spots - Digha, Puri and Darjeeling. Although I am a Bengali (hard-core rice-and-everything-else eating and to an extent Maa Kali fearing) I had not really done justice to any of the above-mentioned places till about last year. Till 2011 I had been to Digha only once and as luck would have it I landed up in the beaches of Digha at the same time as the cyclone Aila did (in 2009) leaving little option for me to do anything else besides being cooped up in the hotel room for the next two days. My first trip to Puri was undertaken when I was only three. Hence, the only things taking me back to the Puri expedition are the faded pages of the family album accompanied by the ‘let’s go down memory lane’ narratives that my parents occasionally love rewinding. The Darjeeling-Sikkim-Gangtok trip again was a fast planned and faster executed three day ‘blink and you miss it’ journey that I had made in October 2010 along with my parents. So, coming back to the point, when the idea of a trip to Darjeeling was floated on one soon-to-become unbearable summer afternoons in March, it was vetoed by all participants leaving no scope for discussion.

Teesta Rangeet Confluence

connected via VC. Mr. Debjit Sarkar of TCS was awarded for winning the naming competition for coining the name ”ITMATTERS” for the HRIS portal. The HRIS Payroll module is due to GO-Live by mid June’ 12.

Prior to embarking on the TBEM application writing exercise- an action planning workshop was organised at Tollygunge Club on Sunday, 5th February, 12. The programme was conducted by Tata Quality Management Systems (TQMS) faculty, Mr. Subir Chowdhury. The workshop saw the participation of 36 participants who were divided into groups of six. The groups were then assigned the six of the TBEM categories namely: Leadership; Strategy Planning; Customer & Market focus; Measurement, Analysis & Knowledge Management; Workforce Focus; Process Management. Further to a brainstorming session, the broad Action Points for each category were enlisted. An action plan summary presentation was prepared by each team and presented. A drilled down detailed version of the Action Plans with the assigned responsibilities & timelines was thereafter formulated by the teams and vetted by the Category leads by the first week of April’ 12. As a follow through of the Action Planning timeline - the TBEM Application writing has begun from first week of May’ 12.

TBEM ACTION PLANNING EXERCISE

As a part of TMILL’s Evaluation & Improvement process in the Employee Benefits Spectrum, we have now taken a Group Personnel Accident Policy from Bharti Axa covering all employee groups & contract workers. The policy has come into effect from 01-03-2012 for a period of one year. The details of the Policy are available in the HRIS portal.

...when the idea of a trip to Darjeeling was floated on one soon-to-become unbearable summer afternoons in March, it was vetoed by all participants leaving no scope for discussion...

GROUP ACCIDENT POLICY

FROM THE HR DESK

MOODS, MEMORABILIA AND MEANDERINGS OF A DARJEELING TRIP

By Ms. Sreejita Basu,Asst Manager,HR

PAGE 7TMILLAN / MAY 2012

EMPLOYEE CORNER

Farmhouse at Bara Mangwa

The four day trip to be executed in the first week of May was divided into two parts - the first day in a village called Bara Mangwa - a village towards the western side of the Kalimpong hills followed by the next two and a half days in Darjeeling and its vicinity. The plan to head to Bara Mangwa was aided by Mr. Animesh Panda (Territory Manager - East, TKM Global Logistics Ltd.) who had founded a charitable trust in this region back in 2005 with the objective of helping the local community of the village. Since then, the trust has begun organic farming, animal husbandry and flower cultivation in this region. Besides this, there is also a small school where children from the village are educated and trained along with a healthcare centre. One could say that we were not in the highest of spirits after a night-long train journey, a two hour bus ride and a forty five minute bumpy drive. But a refreshing drink of orange squash (straight from the nearby orange orchard) and a cold water shower and we were sprinting to explore the almost virginal beauty of Bara Mangwa. Accompanying us on our trek was Tyson - a distant relative of the Kumaon Mastiff and Rahi, a six month old German Shepherd. This was not quite to the liking of one of our companions for whom the word ‘dog’ spells dread, disaster, and possibly doom but she managed well given the cool temperament of both Tyson and Rahi. A quick spell of unexpected rain, endless servings of piping-hot momos served with the tantalizing Tibetan chilli

dip, the strumming of the guitar and the spine-chilling (and sometimes comical) versions of ‘bhooter golpo’ made our stay at Bara Mangwa a more than ‘just perfect’ affair.

Hailstorm in Darjeeling

We started for Darjeeling early next morning where our plan was to first dig into the famed breakfast (and if I may add, a tad overrated) at Glenary’ before doing anything else. After some debate over which way to take (one can go to Darjeeling from Bara Mangwa either via Peshok or Tagda), we set off. The first stop was the Teesta-Rangeet confluence - the meeting of the two largest rivers of Sikkim. Local guides of this region love to regale tourists with the anecdote of the ‘Lover’s Point’ with Teesta as the woman and Rangeet as her lover. Having lapped up the stories and the breathtaking beauty of the region we were on our way to Darjeeling again when the surprise package of the tour presented itself before us. The pleasant morning breeze had turned into a nippy wind and before we knew it a hailstorm had struck the mountains with such gusto that all the roads leading upto Darjeeling were jammed for a good forty five minutes before the traffic showed any signs of movement. But this was no ordinary hailstorm...Voila! This, believe it or not (even we did not until the newspapers announced it the next morning) was snowfall in the month of April! Although our feet were on the verge of developing

...The plan to head to Bara Mangwa was aided by Mr. Animesh Panda (Territory Manager- East, TKM Global Logistics Ltd.) who had founded a charitable trust in this region back in 2005 with the objective of helping the local community of the village...

PAGE 8TMILLAN / MAY 2012

EMPLOYEE CORNER

DIRECT TAX: COMPILATION OF SOME OF THE MAJOR AMENDMENTS BY UNION BUDGET

2012-13By Mr.Sumit Agarwal, Assistant Manager, F&A

� Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh

� Interest from savings bank accounts deductible up to Rs.10,000; deduction of up to Rs.5,000 for preventive health check-up

� Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore

� STT(Security Transaction Tax) reduced from 0.125% to 0.1%

� Senior citizens without business income exempt from advance tax

� 15% rate for dividends from foreign companies extended for FY 2012-13

� TCS (Tax collected at source)on cash purchase of bullion and jewellery

� TCS (Tax collected at source)on cash purchase of immovable property above specified limit

� Withholding tax rate on interest on ECB reduced from 20% to 5% for 3 years for specified sectors

� General Anti Avoidance Rule being introduced to counter aggressive tax avoidance

� Re-opening of tax assessments up to 16 years in case of overseas assets

� White paper on Black Money to be introduced in the current session of Parliament

� Tax @ 30% on unexplained credit or investment (slab rate benefit not available)

� No change in corporate tax rate and tax structures

� Cascading effect of DDT (Dividend Distribution Tax) in a multi-layer corporate structure removed

� 82 Double Taxation Avoidance Agreements and 19 Tax Information Exchange Agreements finalised: FM

� A number of measures proposed to deter generation and use of unaccounted money

� Alternate Minimum Tax (AMT) on all persons other than companies

� TDS (Tax Deducted at Source )on remuneration to a director

� TCS (Tax collected at source) on sale of certain minerals

frostbites and our luggage (which had been fastened to the top of the jeep) was soaked to the core, this was serendipity indeed!

The next two days in Darjeeling were just as much fun. The endless trips to Mall Road (our quaint little hotel was a mere ten minute walk), the haggling over the silk scarves and the woollen caps (this particular woman’s instinct is hard to harness, no matter how much you try), the meals at Keventer’s (alas, they do not serve pork ribs anymore, a sore disappointment), the visit to the Ghoom monastery, the casual walks through the lanes of Chowk Bazaar (recently in the news for a massive fire in the marketplace), the posing for the shutterbug (we boasted of a very talented amateur photographer amidst us), the cosy feeling of sporting woollens long stacked in naphthalene scattered suitcases, the headiness of sipping freshly brewed Darjeeling tea (one of the three best beverages in the world along with champagne and cognac) - images like this and many more are well stacked in our cameras and our heads. We did not have the luck of catching a sight of the Kanchenjunga in its morning glory (blame the rain gods for it) or the time to take a ride in one of the heritage toy trains. But no one is complaining. For, as Lao Tzu very succinctly put it, “A good traveller has no fixed plans and is not intent on arriving”.

*Photo Credits: Subhadip Dutta

...The endless trips to Mall Road (our quaint little hotel was a mere ten minute walk), the haggling over the silk scarves and the woollen caps (this particular woman’s instinct is hard to harness, no matter how much you try), the meals at Keventer’s (alas, they do not serve pork ribs anymore, a sore disappointment), the visit to the Ghoom monastery...

PAGE 9TMILLAN / MAY 2012

EMPLOYEE CORNER

� Share premium in excess of the fair market value to be treated as income

� Relief from long-term capital gains tax on transfer of residential property if invested in a manufacturing small or medium enterprise

� Reduction of the eligible age for senior citizens for certain tax reliefs

� Rationalization of Tax Deducted at Source (TDS) and Tax Collected at source (TCS) Provisions

� Disallowance of business expenditure on account of non-deduction of tax on payment to resident payee

� Prohibition of cash donations in excess of ten thousand rupees

� Eligibility condition for deduction in respect of life insurance policies

� Time Limits for Assessments

Details of Proposed Amendments relating to some Important Provisions: Alternate Minimum Tax (AMT) on all persons other than companies:In order to widen the tax base vis-à-vis profit linked deductions, it is proposed to amend provisions regarding AMT contained in Chapter XII-BA in the Income-tax Act to provide that a person other than a company, who has claimed deduction under any section (other than section 80P) included in Chapter VI-A under the heading “C – Deductions in respect of certain incomes” or under section 10AA, shall be liable to pay AMT. Under the proposed amendments, where the regular income-tax payable for a previous year by a person (other than a company) is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of such person and he shall be liable to pay income-tax on such total income at the rate of eighteen and one-half per cent. Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land):In order to collect tax at the earliest point of time and also to have a reporting mechanism of transactions in the real estate sector, it is proposed to insert a new provision to provide that every transferee, at the time of making payment or crediting any sum by way of consideration for transfer of immovable property (other than agricultural land), shall deduct tax, at the rate of 1% of such sum, if the consideration paid or payable for the transfer of such property exceeds :

(a) fifty lakh rupees in case such property is situated in a

specified urban agglomeration; or(b) twenty lakh rupees in case such property is situated

in any other area.

It is further proposed to provide that where the consideration paid or payable for the transfer of such property is less than the value adopted or assessed or assessable by any authority of a State Government for the purposes of payment of stamp duty, the value so adopted or assessed or assessable shall be deemed as consideration paid or payable for the transfer of such immovable property.

For better compliance, it is also proposed to provide that a registering officer appointed under the Indian Registration Act, 1908 (Registrar) shall not register the transfer of any immovable property where taxes are required to be deducted under this provision unless the transferee furnishes proof of deduction and payment of TDS. TDS on remuneration to a director:There is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary. It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director, which is not in the nature of salary, at the rate of 10% of such remuneration.

This amendment will take effect from 1st July, 2012. [Clause 71] Tax Collection at Source (TCS) on cash sale of bullion and jewellery:In order to reduce the quantum of cash transaction in bullion and jewellery sector and for curbing the flow of unaccounted money in the trading system of bullion and jewellery, it is proposed to provide that the seller of bullion and jewellery shall collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery if sale consideration exceeds two lakh rupees and the sale is in cash. This would be irrespective of the fact whether buyer is a manufacturer, trader or purchase is for personal use.

...the seller of bullion and jewellery shall collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery if sale consideration exceeds two lakh rupees and the sale is in cash...

PAGE 10TMILLAN / MAY 2012

This amendment will take effect from 1st July, 2012. [Clause 79] TCS on sale of certain minerals:In order to collect tax at the earliest point of time and also to improve reporting mechanism of transactions in mining sector, it is proposed that tax at the rate of 1% shall be collected by the seller from the buyer of the following minerals: (a) Coal; (b) Lignite; and (c) Iron ore.

However, the seller shall also not collect tax on sale of the said minerals if the same are purchased by the buyer for personal consumption. Further, the seller of these minerals shall not collect tax if the buyer declares that these minerals are to be utilized for the purposes of manufacturing, processing or producing articles or things.

This amendment will take effect from 1st July, 2012. Share premium in excess of the fair market value to be treated as income:Section 56(2) provides for the specific category of incomes that shall be chargeable to income-tax under the head “Income from other sources”. It is proposed to insert a new clause in section 56(2). The new clause will apply where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares. In such a case if the consideration received for issue of shares exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to income tax under the head “Income from other sources”. However, this provision shall not apply where the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund. Turnover or gross receipts for audit of accounts and presumptive taxation:It is proposed to increase the threshold limit of total sales, turnover or gross receipts, specified under section 44AB for getting accounts audited, from sixty lakh rupees to one crore rupees in the case of persons carrying on business and from fifteen lakh rupees to twenty five lakh rupees in the case of persons carrying on profession. It is also proposed that for the purposes of presumptive taxation under section 44AD, the threshold limit of total turnover or gross receipts would be increased from sixty lakh rupees to one crore rupees.

These amendments will take effect from 1st April, 2013 and will, accordingly, apply to the assessment year 2013-14 and

subsequent assessment years. [Clauses 13, 14] Exemption for Senior Citizens from payment of advance tax:Under the existing provisions of Income-tax Act, every assessee is required to pay advance tax if the tax liability for the previous year exceeds ten thousand rupees. In case of senior citizens who have passive income of the nature of interest, rent, etc., the requirement of payment of advance tax results in raising compliance burden. In order to reduce the compliance burden of such senior citizens, it is proposed that a resident senior citizen, not having any income chargeable under the head “Profits and gains of business or profession”, shall not be liable to pay advance tax and such senior citizen shall be allowed to discharge his tax liability (other than TDS) by payment of self assessment tax. This amendment will take effect from the 1st April, 2012. Accordingly, the aforesaid senior citizen would not be required to pay advance tax for the financial year 2012-13 and subsequent financial years. [Clause 80] Relief from long-term capital gains tax on transfer of residential property if invested in a manufacturing small or medium enterprise:The Government had announced National Manufacturing Policy (NMP) in 2011, one of the goals of which is to incentivise investment in the Small and Medium Enterprises (SME) in the manufacturing sector. It is proposed to insert a new section 546B so as to provide rollover relief from long term capital gains tax to an individual or an HUF on sale of a residential property (house or plot of land) in case of re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery. Reduction in the rate of Securities Transaction Tax (STT):Securities Transaction Tax (STT) on transactions in specified securities were introduced vide Finance (No.2) Act, 2004. It is proposed to reduce STT in Cash Delivery segment from the existing 0.125% to 0.1%. The proposed new rates along with details of old rates are given in the following table. 

EMPLOYEE CORNER

...The Finance Act, 2011 amended the effective age of a senior citizen being an Indian resident from sixty-five years of age to sixty years for the purposes of application of various tax slabs...

PAGE 11TMILLAN / MAY 2012

Reduction of the eligible age for senior citizens for certain tax reliefs:The Finance Act, 2011 amended the effective age of a senior citizen being an Indian resident from sixty-five years of age to sixty years for the purposes of application of various tax slabs and rates of tax under the Income Tax Act, 1961 for income earned during the financial year 2011-12 (assessment year 2012-13). Deduction for expenditure on preventive health check-up:It is proposed to amend section 80D to also include any payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parents(s) during the previous year as eligible for deduction within the overall limits prescribed in the section. However, the proposed deduction on account of expenditure on preventive health check-up (for self, spouse, dependent children and parents) shall not exceed in the aggregate Rs.5, 000. It is further proposed to provide that for the purpose of the deduction under section 80D, payment can be made – (i) by any mode, including cash, in respect of any sum paid on account of preventive health check-up and (ii) by any mode other than cash, in all other cases.

These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment years [Clause 25]. Deduction in respect of interest on deposits in savings accounts:Under the proposed new section 80TTA of the Income-tax Act, a deduction up to an extent of ten thousand rupees in aggregate shall be allowed to an assessee, being an individual or a Hindu undivided family, in respect of any income by way of interest on deposits (not being time deposits) in a savings account with:

(i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or

(iii) a post office, as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).

However, where the aforesaid income is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed in respect of such income in computing the total income of any partner of the firm or any member of the association or body. This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment years. RATIONALIZATION OF TAX DEDUCTION AT SOURCE (TDS) AND TAX COLLECTION AT SOURCE (TCS) PROVISIONS

Deemed date of payment of tax by the resident payee:In order to provide clarity regarding discharge of tax liability by the resident payee on payment of any sum received by him without deduction of tax, it proposed to amend section 201 to provide that the payer who fails to deduct the whole or any part of the tax on the payment made to a resident payee shall not be deemed to be an assessee in default in respect of such tax if such resident payee:

(i) has furnished his return of income under section 139;(ii) has taken into account such sum for computing

income in such return of income; and(iii) has paid the tax due on the income declared by him

in such return of income, and the payer furnishes a certificate to this effect from an accountant in such form as may be prescribed.

The date of payment of taxes by the resident payee shall be deemed to be the date on which return has been furnished by the payer.

It is also proposed to provide that where the payer fails to deduct the whole or any part of the tax on the payment made to a resident and is not deemed to be an assessee in default under section 201(1) on account of payment of taxes by the such resident, the interest under section 201(1A)(i) shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such resident payee.

These amendments will take effect from 1st July, 2012. Disallowance of business expenditure on account of non-deduction of tax on payment to resident payee:In order to rationalise the provisions of disallowance on

...any payment exceeding a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash....

EMPLOYEE CORNER

PAGE 12TMILLAN / MAY 2012

account of non-deduction of tax from the payments made to a resident payee, it is proposed to amend section 40(a)(ia) to provide that where an assessee makes payment of the nature specified in the said section to a resident payee without deduction of tax and is not deemed to be an assessee in default under section 201(1) on account of payment of taxes by the payee, then, for the purpose of allowing deduction of such sum, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee. These beneficial provisions are proposed to be applicable only in the case of resident payee. These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment years.

Threshold for TDS on payment of interest on debentures:In order to reduce the compliance burden on small assessees and companies, it is proposed that no deduction of tax should be made from payment of interest on any debenture, (whether listed or not) issued by a company, in which the public are substantially interested, to a resident individual or Hindu undivided family, if the aggregate amount of interest on such debenture paid during the financial year does not exceed Rs.5,000 and the payment is made by account payee cheque.

This amendment will take effect from 1st July, 2012. Prohibition of cash donations in excess of ten thousand rupees:It is proposed to amend sections 80G and 80GGA so as specify therein that any payment exceeding a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash.

These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to assessment year 2013-14 and subsequent assessment years. Eligibility condition for deduction in respect of life insurance policies:The existing provisions contained in section 80C(3) provide that the deduction for life insurance premium shall be allowed for only so much of any premium or other payment made on an insurance policy as is not in excess of 20% of the actual capital sum assured.

It is proposed to amend the provisions to provide that the deduction for life insurance premium as regards insurance policies issued on or after 1st April, 2012 shall be allowed for only so much of the premium payable as does not exceed 10% of the actual capital sum assured.

These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year2013-14 and subsequent assessment years.

CONGRATULATIONSEMPLOYEE CORNER

Our heartiest congratulations to Mrs. Sulochana Ghosh for having been blessed with daughter Saisha

Congratulations to Mr. Murtaza Sabir on the birth of his beautiful daughter - Husaina

Congratulations Mr. Deep Chandra for having been blessed with Aarush, his new-born

PAGE 13TMILLAN / MAY 2012

CONGRATULATIONS

Congratulations to Mr. Pratyush Ranjan Khan of TMILL Kolkata on his wedding. We wish him all the best for a prosperous life ahead

Heartiest congratulations to Mr. Saubhagya Ranjan Sahu of Dhamra on his wedding and wish him the very best for his future

Congratulations to Mr. Amitabha Majumder - His photograph has been selected and published in the Smart Photography journal (as shown above in the concerned page from the magazine).

We look forward to more of his photographic ventures.

ACHIEVEMENTS

Ms. Aditi Bhowmick, D/O Mr. K. L. Bhowmick has been awarded the prestigious Tata Scholarship for admission in the Cornell University, Undergraduate course for Liberal Arts.

We congratulate her and wish her the best for her future endeavours.

PAGE 14TMILLAN / MAY 2012

Mustaque Ali Khan TMILL, Dhamra

Dandapani  Swain TMILL, Dhamra

CONGRATULATIONS CORRIGENDUM

Name Ratanjeet Singh

Month February 2012

Place Kolkata

SBU TMHSPL

It is with deep regret that we mourn the sad demise of two of our dear colleagues:

Mr. R. N. Swain, Senior Manager, aged 44 of Port Operation, Dhamra Division. He met with a fatal road accident on 16th January ’12 at Bhubaneswar, Orissa. He is survived by his daughter and wife - our condolences to his family.

Mr. R. Khuntia, Senior Stenographer, aged 50 of Port Operation, Paradip Division. He passed away on 21st February ’12. He is survived by his wife and two children - we offer our heartfelt condolence to the bereaved family. Please know that our thoughts and prayers are with you during this tragic time.

Mr. R. N. Swain Mr. R. Khuntia

CONDOLENCE

NEW JOINEES

In our last issue we had published a report on the Cultural Program organised at TMILL on 30th September ’11 before the Puja break. We express our heartfelt apology for having missed out on mentioning a very important member of the team, without whom, conceiving the programme would have been very difficult. A sincere thanks to Mr. Arnab Maity

& we hope that he will provide us with his unhindered support in many such programmes to come.

Mr. Ratanjeet Singh joined us in February 2012 as Assistant General Manager in the Business Development team and will be based out of the Kolkata office.

Mr. Singh is an MBA from XLRI, Jamshedpur and a BE from REC, Durgapur. His last stint was with Damco- an A.P. Moller – Maersk group company. Prior to that, Mr. Singh has been associated with TRF Limited, Steel Authority of India Limited (SAIL) and National Aluminium Company Limited.

His exposure spans over a period of eight years with functional expertise in Corporate Planning & Strategy, Product Marketing & Business Development and Logistics & Supply Chain Management.

We take this opportunity in congratulating Mr. Shamik Dutta from TKM Global Logistics Limited, who had participated in the 3rd Eastern India & 9th West Bengal State Trap & Double Trap Shooting Championship held in Midnapore from 9th - 12th February, 2012. Mr. Dutta has made us proud by winning medals in three different categories:

� Gold medal in Eastern India (amongst the participating states of Bengal, Bihar, Jharkhand, Orissa & Assam)

� Silver medal in the All Bengal State Level. � Bronze in the State Level team.

Name Dipti Ranjan Nayak

Month March 2012

Place Paradip

SBU Port Operations

ALSO JOINING US

PAGE 15TMILLAN / MAY 2012

PUZZLE

Dear Friends,

Here is a game which will help you enhance your knowledge about the Sea Ports spread across the Indian Coastline.

It is a word jumble The Words are in straight lines, but may be forward, backward, diagonal, up & down but does not skip any letter You can use some letters more than once Once you find a Port, you need to mark it in the puzzle

There are a total of 16 Indian Ports hidden in this Jumble Puzzle, let’s see how many you can find - All the best!

K R C X P S M P K O Z X K C V

I J C H E N N A I L K N A B I

L M F V K M T I E P R T N Y S

W D U F L K H D L O A I D U A

E V B M A H R L K O S V L G K

C N O A B N V A A F W I A S H

P Y N G P A J H K L M Z N V A

M I K O C H I C I F U H J N P

U P D A R K O C N V N I T P A

M I O A P E M A A U D N M K T

B P A R R C H E D N R J I O N

A K O L K A T T A G A A P C A

C T U T I C P E N N E M E C M

A H A L D N M U N D E S O I M

T A R F J V T U T I C O R I N

If you can find all the names, highlight the letters in red in the puzzle and mail in the solved puzzle to us at: sohini_dasgupta@tmilltd.com / sbasu@tmilltd.com.

The names of the first three early bird winners will be published in the next edition of TMILLAN.

Please send your suggestion/feedback to

sohini_dasgupta@tmilltd.com / sbasu@tmilld.com