RNM Alert VOL LXVIII AUGUST 2014 - Final Alert VOL LXVIII AUGUST... · AUGUST, 2014 Thinking of the...

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ISSUE NO.68 AUGUST, 2014

RNM ALERT

Thinking of the Bottom Line – Think of Us

Dear Readers, We are pleased to announce that an M&A transaction of our sister concern, RNM & Associates was successfully completed. RNM acted as the sole advisor on the sale of 51% stake in Rajshree Hospitals, Indore to Apollo Hospitals, Chennai. The said deal was announced and carried in the Economic Times. This transaction demonstrates RNM’s continued streangth in the Healthcare M&A space and our unique ability to forge

long-term relationships with clients, spanning multiple transactions, to help them achieve their growth ambitions. During the month I am sure that all of you have received the recent RNM Special: Corporate Alert on some of the urgent corporate actions required as a result of the recent regulatory changes in Corporate laws. The portal for ‘Independent Directors Repository’ has recently been launched by the three Professional Institutes under the active encouragement of the Ministry of Corporate Affairs. This will go a long way in ensuring compliance with relevant Corporate Governance requirements surrounding Board Constitution. The Institute of Chartered Accounts of India has recently issued the revised Guidance Note on Tax Audit u/s 44AB of the Income Tax Act, 1961. The said Guidance Note recognizes the additional risks and burden associated with the revised Form 3CD and assists in guiding the professionals in discharge of their attest duties. One common practical issue faced each month in regard to withholding of taxes, is that Deductors use multiple challans in a month for payment of Tax Deducted. For Deductor's convenience, Centralised Processing Cell (TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in certain circumstances. This should help ease the TDS compliance time and make it less tedious. Indian stocks saw gains for a fourth month in August of about 2.7% (data as of 28 August) in local currency and 2.4% in USD terms. Some may say “Achey Din”?

Regards, CA U.N. Marwah

For and behalf of the RNM Alert Editorial Board

Issue No. 68: August, 2014 of 17

CONTENTS Direct Tax

- Case Laws - Deemed Dividend 4 - Basic of charge 4 - Expenditure incurred in relation to exempt Income 4 - Income from House Property 4 - Profit & Gain from Business & Profession 5 - Other Sources 5 - Set off or carry forward and set off 5 - Deduction 5 - Transfer Pricing 5 - Minimum Alternate Tax 5 - Procedure for assessment 5-6 - Collection & recovery of taxes 6 - Penalties 6

- Notifications 7 - PPF Notification 7

Indirect Tax Service Tax

- Case Laws - Exempt from service tax to comm. paid to facilitate export of cotton, rice & Cashew 8 - Penalty leviable if ST collected from customers paid after receipt of letter from 8 - Excess service tax paid can be adjusted against shortfall of subsequent months 8 - Free supplies won’t form part of gross consideration 8 - Input credit wasn’t available on basis of unsigned invoice given by service provider 8 - Mere transport of goods without consignment note doesn’t amount to GTA service 9 - Person selling milk at a price fixed by suppliers is an agent & is liable to ST 9 - Revenue couldn’t allege suppression of facts by assessee when it had conducted audit 9


DIRECT TAX DIRECT TAX

Company Law Updates - Circular

- Amendment of schedule II of Cos. Act, 2013 10 - Clarification accounting standard (AS)10 – capitalization of Cost 10 - Amendment of Cos. Rules 2014 10 - Co Law settlement scheme 10 - Amendment of schedule VII of Cos. Act, 2013 10-11

RBI Updates - Circular

- Purchase & sale of securities other than shares or convertible debentures 12 of an Indian Co. by a person resident outside India

- Refinancing of ECB at lower all-in-cost-Simplification of procedure 12 - Liberalized remittance scheme for resident individuals – clarification 12

Corporate Finance - Latest News

- Private Equity 13-14 - Mergers & Acquisition 14-15 - Venture Capital 15-16


DIRECT TAX Case Laws Deemed Dividend Sec 2(22)(e) - Where assessee received certain inter-corporate deposits from its sister concern, in view of fact that one of shareholders was holding shares in excess of 20 per cent in both companies but assessee itself was not a registered shareholder of sister concern, amount in question could not be brought to tax as deemed dividend under section 2(22)(e) [Source: CIT v. G.T. Z. Securities Ltd. [2014] 46 taxmann.com 448 (Jammu & Kashmir)/[2013] 359 ITR 345 (J & K)] Basic of Charge Sec 4 - Association of persons --Essential features--Must be constituted by two or more persons--Constituent members must have come together for a common purpose--Association must move by common action--Co-operation and association amongst constituent members must not be perfunctory or merely in form--Association amongst members must be real and substantial. [Source: CTCI Overseas Corporation Ltd. v. DIT (International Taxation) (Delhi) [2014] 45 taxmann.com 445] Sec 9 - Income arising to NR from facilitating export of goods without buying them in its name isn't chargeable to tax [Source: DIT v. Mondial Orient Ltd. [2014] 48 taxmann.com 263 (Karnataka)] Expenditure incurred in relation to exempt income Sec 14A - Investments in subsidiaries to be excluded while computing disallowance. [Source: EIH Associated Hotels Ltd vs. DCIT (ITAT Chennai) I.T.A. No. 1503/Mds/2012] Sec 14A – It cannot be applied in a mechanical manner. Disallowance cannot exceed expenditure claimed as a deduction [Source: ACIT vs. Iqbal M. Chagala (ITAT Mumbai) ITA No. 877/Mum/2013] Sec 14A - No disallowance can be made if there is no exempt income. Cheminvest (SB) & CBDT Circular are not good law [Source: ACIT vs. M. Baskaran (ITAT Chennai) I.T.A.No.1717/Mds/2013] Sec 14A - For Rule 8D(2)(i) only expenditure relating to investments resulting in tax-free income can be considered. For Rule 8D(2)(iii) all investments, whether yielding tax-free income or not, have to be considered [Source: Bellwether Microfinance Fund Pvt. Ltd vs. ITO (ITAT Hyderabad) ITA No. 1743/Hyd/2013] Income from House Property Sec 23(1) - AO isn't bound to follow municipal valuation of property to determine its Annual Value, rules HC [Source: CIT v. Tip Top Typography [2014] 48 taxmann.com 191 (Bombay)]


Profit & Gain from Business & Profession Sec 43(1) - ITAT follows AS-10 to include one-time vehicle tax in cost of vehicle treating it as capital expenditure [Source: M. Dinshaw & Co. (P.) Ltd. v. DCIT [2014] 48 taxmann.com 190 (Mumbai - Trib.)] Other Sources Sec 57(iii) - Interest paid on a loan taken to avoid premature encashment of a fixed deposit is deductible against the interest earned on the fixed deposit [Source: Raj Kumari Agarwal vs. DCIT (ITAT Agra) I.T.A. No.: 176/Agra/2013] Set off or Carry forward and set off Sec 71 - Business losses can be set off against undisclosed income under sec. 68, says ITAT [Source: K.R. Automobiles v. ACIT [2014] 47 taxmann.com 383 (Ahmd - Trib.)/[2014] 161 TTJ 39 (Ahmd - Trib.)] Deductions Sec 80-IB - An “industrial undertaking” can be formed by taking P&M on hire. Not necessary for the assessee to “own” the P&M. Dept’s tendency to try to unsettle matters strongly disapproved [Source: CIT vs. Jyoti Prakash Dutta (Bombay High Court) ITA No. 540/2012] Transfer Pricing Sec 92 - Share application money, though not allotted into shares for a long time, cannot be treated as a “loan” for taxing notional interest [Source: Allcargo Global Logistics Ltd vs. ACIT (ITAT Mumbai) I .T.A. No.4909/Mum/2012]

Minimum Alternate Tax Sec 115JB - Profit from sale of agricultural land can’t be included in book profit for the purpose of MAT [Source: ACIT v. Nilgiri Tea Estate Ltd [2014] 47 taxmann.com 329 (Cochin - Trib.)] Procedure of Assessment Sec 144C - Where DRP instead of clearly adjudicating issue relating to existence of assessee's PE in India, remanded matter back to Assessing Officer to decide said issue after taking into consideration various evidences filed by assessee, order so passed being in violation of provisions of section 144C(8), was to be set aside [Source: Swiber Offshore Construction Pte. Ltd. v. ADIT (Intl. Taxation) [2014] 48 taxmann.com 131 (Mum - Trib.)] Sec 148 - Reassessment notice held valid as foreign co. was doing business in India via subsidiary PE but didn't file its return [Source: Principal Officer, LG Electronics Inc. v. ADIT, Intl. Taxation [2014] 48 taxmann.com 130 (Allahabad)] Sec 147 - If “reasons to believe” are not based on new, “tangible materials”, the reopening amounts to an impermissible review [Source: Madhukar Khosla vs. ACIT (Delhi High Court) W.P.(C) 1320/2014, C.M. NO.2744/2014 & 2745/2014]


Sec 147/ 148 - Writ Petition challenging lack of jurisdiction to issue s. 148 notice on the ground that it is based on ‘change of opinion’ & preconditions of s. 147 are not satisfied is maintainable. [Source: Aroni Commercials Ltd vs. ACIT (Bombay High Court) WRIT PETITION NO. 1327 of 2013] Sec 153A - AO is required to assess the “total income” and is not confined only to income which was unearthed during search. Law laid down in All Cargo Global Logistics disapproved [Source: Canara Housing Development Co vs. DCIT (Karnataka High Court) ITA No. 38/2014] Sec 153A: No addition can be made in respect of an unabated assessment which has become final if no incriminating material is found during the search [Source: CIT vs. Murli Agro Products Ltd (Bombay High Court) INCOME TAX APPEAL NO.36/2009]

Collection and Recovery of Taxes Sec 195 - Payment of export commission for services rendered outside India couldn’t be deemed as FTS to attract TDS [Source: ACIT v. T. Abdul Wahid Tanneries (P.) Ltd. [2014] 47 taxmann.com 133 (Chennai - Trib.)] Sec 199 - Upon issue of Form 16A TDS certificate, TDS credit has to be given to the payee even if there is Form 26AS mismatch or deductor is at fault for non-deposit of TDS with Govt. [Source: Sumit Devendra Rajani vs. ACIT (Gujarat High Court) SPECIAL CIVIL APPLICATION NO. 2349 of 2014] Sec 234E - High Court grants ad-interim stay against operation of notices levying fee for failure to file TDS statement [Source: M/s Shree Builders vs. UOI (Madhya Pradesh High Court) WRIT PETITION (WP) 11831/2014] Penalties Sec 271(1)(c) - No S. 271(1)(c) penalty for failure to compute capital gains as per s. 50C. Direct judgements on the topic have to be followed [Source: Harish Voovaya Shetty vs. ITO (ITAT Mumbai) ITA NO.6383/MUM/2012]


Notifications Due date for e-furnishing of tax audit report under Section 44AB for AY 2014-15 extended to 30-11-2014 [Source: ORDER [F.NO.133/24/2014-TPL], DATED 20-8-2014] Govt. notifies India-Fiji DTAA [Source: NOTIFICATION NO.35/2014 [F.NO.503/11/2005-FTD-II]/SO 2049(E), DATED 12-8-2014] Revised India-Malta DTAA - Enlarged scope of PE, tax on royalties at 10% and 'Limitation Of Benefits' clause introduced [Source: [2014] 48 taxmann.com 158 (Article)]

PPF Notification Public Provident Fund (Amendment) Scheme, 2014 - Amendment In Paragraph 3 And Form-A In exercise of the powers conferred by sub-section (4) of Section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government has made amendments to the Public Provident Fund Scheme, 1968, namely:- in paragraph 3, in sub-paragraph (1), for the letters and figures "Rs.1,00,000", the letters and figures "Rs.1,50,000" shall be substituted In Form-A, in paragraph (iv), for the letters and figures "Rs.1,00,000", the letters and figures "Rs.1,50,000" shall be substituted [Source: NOTIFICATION NO. GSR 588(E) [F.NO.1/2/2014-NS.II], DATED 13-8-2014]


INDIRECT TAX

Service Tax

Case Law Exemption from Service Tax to Commission Paid to Facilitate Export of Cotton, Rice, Cashew Commission relating to cotton, rice, cashew and sesame viz. agricultural produce is, prima facie, exempt; and corporate guarantee commission is not covered under 'bank guarantee' referred to in section 65(12) 'Banking and Other Financial Services' [Source: Olam Agro India Ltd. v. Commissioner of Central Excise, Delhi-II [2014] 47 taxmann.com 179 (Delhi)]

Penalty Leviable if ST Collected From Customers Paid After Receipt of Letter from Department Service Tax : Where assessee was collecting service tax from its customers, but, neither paid service tax nor filed returns and paid service tax with interest only after receipt of letter from department, penalty was leviable even if amounts were paid prior to issuance of show-cause notice [Source: Time Ads & Publicity v. Comm. of Cent. Ex., Cust. & Ser. Tax, Cochin [2014] 47 taxmann.com 97 (Bgl - CESTAT)]

Excess Service Tax Paid Can be Adjusted against shortfall in payment of tax of subsequent months Service Tax : Excess payment of service tax during a particular month arising due to estimation of tax liability must be adjusted against short payment during other months, as there is no unjust enrichment involved [Source: General Manager, Bharat Sanchar Nigam Ltd. v. Commissioner of Central Excise, Raipur [2014] 47 taxmann.com 226 (New Delhi - CESTAT)]

Free supplies won’t form part of gross consideration for abatement purposes; ratio of ‘Bhayana Builders’ followed Service Tax : In G.D. Builders, Delhi High Court merely upheld validity of abatement Notification No. 1/2006-ST but did not interpret it; therefore, in view of interpretation of said Notification in Bhayana Builders (LB), free supplies will not form part of gross consideration for grant of abatement ATR Constructions (P.) Ltd. v. Commissioner of Central Excise, Ghaziabad [2014] 47 taxmann.com 222 (New Delhi - CESTAT)

Input credit wasn’t available on basis of unsigned computer generated invoice given by service provider Cenvat Credit : CENVAT Credit of input service can be taken only on basis of invoice issued by provider of input service which means original invoices signed by service provider and not computed-generated/electronic copies of invoices [Source: Sky Net Work v. Commissioner of Service Tax, Bhavnagar [2014] 47 taxmann.com 220 (Ahmd - CESTAT)]


Mere transportation of goods without issuance of consignment note doesn’t amount to GTA services Service Tax : Consignment note issued by GTA represents its liability to : (a) transport consignment to destination, (b) undertake delivery to consignee, and (c) temporarily store it till delivery; therefore, transport of goods by individual truck owner without issue of consignment note, GR's & billties etc. does not amount to GTA service [Source: Nandganj Sihori Sugar Co. v. Comm. of Cent. Ex., Lucknow[2014] 47taxmann.com 92 (New Delhi- CESTAT)]

Person selling milk at a price fixed by supplier is an ‘agent’ and is liable to ST under ‘BAS’ Service Tax : Where price of goods (milk) was fixed by supplier and assessee was not at liberty to sell milk at a higher rate or lower rate, assessee was acting as agent of supplier and liable to service tax under 'Business Auxiliary Service' [Source: Erode Milk Consumer Co-op. So. Ltd. v. Comm. of Cent. Ex., Salem [2014] 47taxmann.com 7(Ch - CESTAT)]

Revenue couldn’t allege suppression of facts by assessee when it had already conducted detailed audit Service Tax: Where detailed audit has been conducted by department itself in year 2009 and audit objects were met out by assessee by paying service tax demanded, then, show cause notice issued in October 2010 cannot allege suppression of facts by assessee, as regards other matters [Source: Space Age Associates v. Comm. of Cent. Excise, Pune-III [2014] 47 taxmann.com 13 (Mumbai - CESTAT)]


COMPANY LAW UPDATES Circular/Notification/Guidance Amendment of Schedule II of the Companies Act, 2013 In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes amendments to the Schedule II of the Companies Act, 2013. [Source: Notification No. G.S.R. ____ (E) dated 29th August, 2014]

Clarification Accounting Standard (AS) 10- Capitalization of Cost regarding Accounting Standards AS-10 and AS-16 prescribe the principles of capitalization of various costs based on the underlying concept that only such expenditure should be capitalized as form a part of the cost of fixed assets which increase the worth of the assets. Cost incurred during the extended delay in commencement of commercial production after the plant is otherwise ready does not increase the worth of fixed assets. Such costs cannot, therefore, be capitalized. Accounting Standard AS 16, inter alia provides guidance with regard to part capitalization where some units of a project are complete. In case one of the units of the project is ready for commercial production and is capable of being used while construction continues for the other units, costs should be capitalized in relation to that part once the part is ready for commercial production. It is further clarified that AS 10 and AS 16 are applicable irrespective of whether the power projects are ‘Cost plus Projects’ or ‘Competitive Bid Projects’. [Source: General Circular No. 35/2014 dated 27th August, 2014]

Amendment of Companies (Meetings of Board and its Powers) Rules, 2014 In exercise of the powers conferred under sections 173, 175, 177, 178, 179, 184, 185, 186, 187, 188, 189 and section 191 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes amendment in the Companies (Meetings of Board and its Powers) Rules, 2014. These rules may be called the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2014. [Source: Notification No. G.S.R. 590 (E) dated 14th August, 2014]

Company Law Settlement Scheme Government has launched the 'Company Law Settlement Scheme 2014. As per the scheme the defaulter entities can make statutory filings for a period of two months, starting August 15, without attracting any prosecution. The scheme would come as a relief for defaulting companies as the new companies law provides for strong action against such entities and even directors can be disqualified for failing to make necessary annual filings. The latest move comes against the backdrop of a large percentage of companies failing to file their statutory documents making them liable for penalties and prosecution. [Source: General Circular No. 34/2014 dated 12th August, 2014] Amendment of Schedule VII of Companies Act, 2013 In Schedule VII, after item (x), the following item and entry shall be inserted, namely:- “(xi) slum area development.


Explanation — For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.” [Source: Notification No. G.S.R. 568 (E) dated 06th August, 2014]


RBI UPDATES Circular/Notification/Guidance Purchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India With a view to providing flexibility in regard to the manner in which government securities can be acquired by eligible investors, it has now been decided to remove any stipulation as to the manner of acquisition from the said Regulations. Consequently, the eligible investors can acquire such securities in any manner as per the prevalent/approved market practice. [Source: RBI/2014-15/197 A.P. (DIR Series) Circular No.22 dated 28th August, 2014] Refinancing of ECB at lower all-in-cost – Simplification of procedure It has been decided to simplify the procedure by delegating powers to the AD Category – I banks to approve even those cases where the Average Maturity Period of the fresh ECB is exceeding the residual maturity of the existing ECB under the automatic route subject to the following conditions:

1) Both the existing and fresh ECBs should be in compliance with the applicable guidelines; 2) All-in-cost of fresh ECB should be less than that of the all-in-cost of existing ECB; 3) Consent of the existing lender is available; 4) Refinancing is to be undertaken before the maturity of the existing ECB; 5) Borrower should not be in the default / Caution List of RBI and should not be under the

investigation of the Directorate of Enforcement (DoE); 6) Overseas branches / subsidiaries of Indian banks will not be permitted to extend ECB for

refinancing an existing ECB; and 7) All requirements in respect of reporting arrangements like filing of revised Form 83, etc. are

followed. This facility will be available even in those cases where existing ECBs were raised under the approval route subject to the amount of new ECBs being eligible to be raised under the automatic route. [Source: RBI/2014-15/196 A.P. (DIR Series) Circular No.21 dated 27th August, 2014] Liberalized Remittance Scheme for resident individuals-clarification In terms of A.P. (DIR Series) Circular No. 5 dated July 17, 2014, it was clarified that the Scheme can also be used for acquisition of immovable property outside India. In the light of the above clarification, the requirement of post facto reporting stipulated in terms of A.P. (DIR Series) Circular No.32 dated September 04, 2013, (Sr. no. 4 of Annexure to the Circular) stands withdrawn. [Source: RBI/2014-15/171 A.P. (DIR Series) Circular No.19 dated 11th August, 2014]


CORPORATE FINANCE

Latest News Private Equity IL&FS PE exiting Batanagar residential project IL&FS Investment Managers Ltd (IIML) or IL&FS PE has started exiting from a residential project [Source: VC Circle, AUGUST 29,2014] Paytm looking for $100M in fresh funding Paytm, the digital goods and services marketplace owned by Noida-headquartered One97 Communications Ltd, is looking to raise $100 million in fresh funding, according to founder Vijay Shekhar Sharma. [Source: VCCircle, AUGUST 14,2014] SAIF Partners invests around $8M afresh to raise stake in Manpasand Beverages SAIF Partners has raised its stake in Gujarat-based juice manufacturing and marketing company Manpasand Beverages Pvt Ltd by infusing an additional capital of Rs 45 crore ($7.5 million) [Source: VC Circle, AUGUST 26,2014] Shubham Housing Development Finance raises $20M from investors Housing finance provider Shubham Housing Development Finance Company has raised Rs 122 crore ($20 million) in its recent round of funding from Motilal Oswal Private Equity (MOPE) and existing investors. [Source: VC Circle, AUGUST 19,2014] BlackSoil Realty’s maiden fund invests $5M in Sheth Developers BlackSoil Realty Fund, a private equity fund focused on residential real estate, has invested $5 million (Rs 30 crore) at company holding level in Mumbai-based Sheth Developers through mezzanine structure. [Source: VC Circle, AUGUST 19,2014] ASK invests $9M in Paranjape’s Pune township project ASK Property Investment Advisors (ASKPIA), the real estate private equity arm of financial services firm ASK Group, has invested $9 million (Rs 55 crore) in a township project by Pune-based Paranjape Schemes (Construction) Ltd. [Source: VCCircle, AUGUST 14,2014] Multiples PE in talks to invest $26.1M in Delhivery Renuka Ramnath-led private equity firm Multiples Alternate Asset Management is in advanced discussions to invest Rs 160 crore ($26.1 million) in e-commerce logistics services company SSN Logistics Pvt Ltd which runs the portal Delhivery. [Source: VC Circle, AUGUST 13,2014]


Reliance Capital raising upto $163M realty fund Reliance Capital Asset Management (RCAM) has launched a new real estate fund under Alternative Investment Fund (AIF) norms - Reliance Yield Maximiser Alternative Investment Fund Scheme I (RYM AIF) – with a target of corpus of up to Rs 1,000 crore ($163 million). [Source: VC Circle, AUGUST 11,2014] Prateek Group raising $16M from Xander, in talks with others for same project North-based property developer Prateek Group is raising Rs 100 crore (around $16 million) from global investment firm The Xander Group for one of its under construction projects in Delhi NCR. [Source: VC Circle, AUGUST 6,2014] Shakti Pumps to raise up to $33M in PE funding Submersible water pumps manufacturer Shakti Pumps India Ltd is planning to raise around Rs 150-200 crore (up to $33 million) from private equity firms to support its growth plans. [Source: VC Circle, AUGUST 5,2014] Now Snapdeal looking to raise $300M in fresh PE funding It was just waiting to happen. After Flipkart announced its $1 billion fundraising and Amazon went one up by committing $2 billion investment in India, Delhi-based Jasper Infotech Pvt Ltd, which runs the online marketplace Snapdeal.com, has asked its financial advisor Credit Suisse to scout for $300 million from private equity investors [Source: VC Circle, AUGUST 1,2014]

Merger & Acquisition Aster DM Healthcare acquires Prime Hospitals for $6.8M Aster DM Healthcare, which runs a hospital chain in Middle East and India, has acquired Sri Sainatha Multi Speciality Hospital for $6.8 million as a part of its expansion strategy. [Source: VCCircle, AUGUST 21,2014] Adani to buy Carmichael coal project's royalties rights from Linc for $145M Adani Enterprises Limited has agreed to buy out Australian firm Linc Energy’s rights to future royalties from its Carmichael coal project for A$155 million ($145 million). [Source: VC Circle, AUGUST 29,2014]


Shree Cement to acquire Jaiprakash Associates' Panipat cement unit for $60M Shree Cement Ltd has signed a deal to acquire a cement grinding unit of Jaiprakash Associates Ltd located at Panipat in Haryana for Rs 360 crore (around $60 million). [Source: VCCircle, AUGUST 25,2014] Muthoot Finance acquires 30% stake in Sri Lanka's Asia Asset Finance for $2.1M Muthoot Finance Ltd, India's largest gold financing company, has acquired 29.98 per cent equity stake in Sri Lankan finance services company Asia Asset Finance (AAF) for $2.1 million. [Source: VC Circle, AUGUST 25,2014] Adani Power buys Lanco’s Udupi power plant at an enterprise value of $1B Adani Power has bought Lanco Infratech’s 1,200 MW thermal plant in Udupi (Karnataka) at an enterprise value pegged at a little over Rs 6,000 crore or around $1 billion. [Source:VCCircle, AUGUST 13,2014] Filipino telco PLDT picking 10% in Rocket Internet for $445M Rocket Internet has raised $445.1 million by selling 10 per cent stake to Philippine Long Distance Telephone Company (PLDT) which sets a valuation of around $4.45 billion ahead of a rumoured public float of the company. [Source: VC Circle, AUGUST 7,2014] Japan’s Tsubaki hikes stake in Mahindra Conveyor Systems to 51% Tsubakimoto Chain Co has raised its holding in Mahindra Group’s privately held conveyor systems business from 8.5 per cent to 51 per cent. [Source: VC Circle, AUGUST 4,2014] Cura Healthcare acquires ultrasound device company DE Healthcare Cura Healthcare Pvt. Ltd has entered ultrasound equipment devices business through its acquisition of DE Healthcare (formerly Delta Equipments). [Source: VCCircle, AUGUST 1,2014]

Venture Capital Online meal service co iTiffin started by former Flipkart exec raises $1M Bangalore-based iTiffin Inc., which runs online tiffin service venture iTiffin.in, has raised $1 million (Rs 6 crore) from a large Indian family office in a seed round. [Source: VCCircle, AUGUST 28,2014]


Attero raises $16.5M in Series C from Forum Synergies, existing investors Noida-based Attero Recycling Pvt Ltd, which is into e-waste disposal and management, has raised $16.5 million (Rs 100 crore) in its Series C round of investment led by private equity fund Forum Synergies (India). [Source: VCCircle, AUGUST 28,2014] E-com logistics services firm Holisol raises $1.5M in funding Delhi-based Holisol Logistics Pvt Ltd, a provider of back-end logistics services to e-commerce companies, has received $1.5 million in venture funding from Sundeep Bhandari, director and CEO of Datavision, a software development and data processing company [Source: VCCircle, AUGUST 25,2014] Location-based food ordering startup TinyOwl raises $3M funding from Sequoia, Nexus TinyOwl Technology Pvt Ltd, a Mumbai-based startup that offers a location-based mobile app for food ordering, has secured $3 million in its Series A round of funding from Sequoia Capital and Nexus Venture Partners [Source: VCCircle, AUGUST 22,2014] Healthkart in talks to raise up to $30M in Series C funding Gurgaon-based Bright Lifecare Pvt Ltd, the company behind the online health store Healthkart.com and drug search marketplace Healthkartplus.com, is in talks with multiple investors to raise up to $30 million (about Rs 180 crore) in its Series C round of funding. [Source: VCCircle, AUGUST 14,2014] IT bigwigs’ VC firm makes final close of maiden Exfinity Technology Fund at $20M Reservoir Investment Managers, an early stage venture capital firm floated by IT industry bigwigs including former Infosys execs V Balakrishnan and Mohandas Pai among others, has made its second and final close of its maiden fund Exfinity Technology Fund - Series I (ETF-I) at Rs 125 crore (around $20 million). [Source: VCCircle, AUGUST 8,2014] Refurbished goods e-tailer GreenDust in talks to raise $50M in Series B funding Delhi-based Reverse Logistics Company Pvt Ltd (RLC), which operates under the brand GreenDust, an e-commerce platform for refurbished goods, is in talks to raise $50 million in its Series B round of funding, according to Sandeep Murthy, partner at Lightbox Ventures, an investor in GreenDust. GreenDust, which has offices in the Middle East, will use the money to expand its footprints into various markets in Southeast Asia and Africa. [Source: VCCircle, AUGUST 4,2014]


HEAD OFFICE: CA. U.N. Marwah, Managing Partner 4/80, Janpath New Delhi-1100 01 (India) Tel: +91-11-43192000 Fax: +91-11-43192021 E-mail: [email protected] BRANCH OFFICE: CA. Rathna Kumar 813 Oxford Towers, 139 Airport Road, Bangalore-560 008 E-mail: [email protected] AFFILIATE OFFICES: Mumbai CA. Ashish Bairagra, F11, 3rd Floor, ManekMahal, 90 Veer Nariman Road, Church Gate, Mumbai-400 020

OUR OFFICES Tel. +91 22 6117 4949 Fax. +91 22 6117 4950 E-mail: [email protected] Pune CA. Nitin Khangaonkar 9 ‘B’ & ‘C’ Wing, Supriya Gardens, Aundh, Pune- 411 007 Tel: +91 98230 81701 E-Mail: [email protected] Coimbatore Mr. D. Purushthoman Kaanchan, No. 6, North Hozur Road, Coimbatore- 641 018 Tel. +91 422 2212548, +91 422 2215407 Fax. +91 422 2201206 E-mail: [email protected]

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R.N. Marwah& Company (hereafter referred as RNM) has taken due care and caution in compilation and presenting factually correct data contained herein above. While RNM has made every effort to ensure that the information /data being provided is accurate, RNM does not guarantee the accuracy, adequacy or completeness of any data/information in this newsletter and the same is meant for the use of the recipient and not for circulation. Readers are advised to satisfy themselves about the merits and details of each article and the information contained therein, before taking any decision. RNM does not hold themselves liable for any consequences, legal or otherwise arising out of the use of any such information/data and further states that it has no financial liability whatsoever to the recipient/readers of this newsletter. RNM nor any of its partners/employees/representatives do not accept any liability for any direct or consequential loss arising from the use of information /data contained in this newsletter or any information /data generated from this newsletter. Any dispute arising in future shall be, subject to the court(s) at Delhi.

RNM Alert VOL LXVIII AUGUST 2014 - Final Alert VOL LXVIII AUGUST... · AUGUST, 2014 Thinking of the...

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