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ISSUE NO.60 DECEMBER, 2013

RNM ALERT

Thinking of the Bottom Line – Think of Us

Dear Readers, We are proud to be celebrating the release of our 60th issue of the RNM Alert. Hope you have been enjoying reading the monthly issues of the RNM Alert as much as our Team has enjoyed in putting it together for you these past 5 years. We as always look forward to receiving your comments and reactions to our latest issue.

Team RNM represented by Mr. Raghu Marwah, Partner attended the Global Excellence Mission to Myanmar by Yi– CII from the 16th to 18th of January 2014. As part of the delegation, meaningful interactions were held with Deputy Director of the Ministry of National Planning & Economic Development, Govt. of Myanmar; Deputy Chief of Mission, Embassy of India; President, Myanmar Young Entrepreneurs Association; Professor & Head at Yangon Institute of Economics Department of Management Studies and a combination of visits to renowned factories in Myanmar i.e. FAME Pharmaceuticals, United Paint Group Co Ltd, Yum Yum Noodles and the Myanmar Brewery and an informative session with the Director, Myanmar Japan Thilawa Development Ltd, one of the largest FDI funded private SEZ projects in Myanmar and lastly a visit to the Myanmar Industrial Port. Back home, the Central Board of Direct Taxes (CBDT) has notified a new PAN application forms which now accepts Aadhaar card as a valid proof of identity and address. Individuals being citizens of India now also have to furnish their proof of date of birth. These steps should go a long way in capturing more correct data with the Tax Department. The CBDT has recently also issued a Circular which clarifies that there is no obligation to withhold tax at source on the service tax component, provided such service tax has been separately charged on the invoice. This should provide a major relief to deductee’s who were prior to this being made to bear a cascading tax effect. Wishing all our readers a very happy 65th Republic Day of India on 26th January 2014.

Regards, CA U.N. Marwah

For and behalf of the RNM Alert Editorial Board

RNM ALERT

Issue No. 60: December, 2013 of 21

CONTENTS Direct Tax

- Case Laws

- Deemed Dividend 4 - Expenditure incurred in relation to income not includible in total income 4 - Profit & Loss from Business and Profession 4–5 - Losses in speculation Business 5 - Transfer Pricing 5 - Determination of tax in certain special cases 5 - Search & Seizure 5-6 - Procedure for Assessment 6 - Interest on Refund 6 - Appeal to High Court 7 - Penalties 7

Indirect Tax Service Tax

- Case Laws - Allowing use of passive infrastructure & mobile tower sites 8 to be deemed as a service & not sales - Rectification application may be filed before tribunal within 6 months 8 from date of receipt of order - Supreme Court slams dept. for levying ST penalty u/s 76 & 78, 8 grants staying on recovery - Service of providing market platform can’t be regarded 8 as clearing & forwarding agent service - Cenvat credit stands t/f to amalgamated Co. in scheme of amalgamation 9 - Person paying duty & deemed as an assessee is eligible for Cenvat credit 9 - Capital goods or inputs used at captive mines are eligible for credit 9 - Credit of packaging material is available even if final product is liable 9 to duty on tariff value basis - High court stays recovery of service tax on profit earned out of toll collection 9 - No denial of credit to recipient merely on wrong payment of duty by supplier 9-10 - Services in relation to aircraft used for business visit 10 of MD of Co. are eligible for credit


DIRECT TAX DIRECT TAX

Company Law Updates - Circular

- Clarification with regard to holding of shares or exercising power 11 in as fiduciary capacity holding & subsidiary relationship u/s 2(87) of Cos. Act, 2013 - Clarification with regard to applicability of Sec 182(3) of Cos. Act, 2013 11

RBI Updates - Circular

- FDI – pricing guidelines for FDI instruments with optionally clauses 12 - Borrowing & lending in Rs. Investment by person resident outside India 13 in tax free, secured redeemable, non - convertible bonds - ECB by holding Cos./Core Investment Cos. For the project use 13-14 in special purpose vehicles (SPVs)

Corporate Finance - Latest News

- Private Equity 15 -16 - Mergers & Acquisition 17 - 18 - Venture Capital 19 - 20


DIRECT TAX Case Laws Deemed Dividend Sec 2(22)(e) - Inter-corporate deposits (“ICDs”) are not “loans and advances” and are not assessable to tax as “deemed dividend” [Source: IFB Agro Industries Ltd vs. JCIT (ITAT Kolkata) I.T.A No. 1721/Kol/2012]

Expenditure incurred in relation to income not includible in total income Sec 14A- Onus is on AO to show how assessee’s claim is incorrect. AO has to show direct nexus between expenditure & exempt income. Disallowance cannot be made on presumptions [Source: DCIT vs. Allied Investments Housing P. Ltd (ITAT Chennai) ITA No. 305/Mds/2013]

Sec 14A - Expenditure on acquiring shares out of “commercial expediency” & to earn taxable income cannot be disallowed [Source: CIT vs. Oriental Structural Engineers Pvt Ltd (Delhi High Court)]

Sec 14A – Sec 14A disallowance applies to tax-free securities held as stock-in-trade [Source: D. H. Securities Pvt. Ltd vs. DCIT (ITAT Mumbai) (Third Member) ITA No. 5724/Mum/2011]

Profit & Gains of Business or Profession Sec 28 - Where claim of assessee regarding share trading and future options losses was substantiated by it by furnishing valid and statutorily accepted documents, merely debiting these items directly in capital account instead of in profit and loss account, could not be a ground to disregard legally acceptable claim of assessee. [Source: CIT V. NAISHAD I. PARIKH(2013) 39 taxmann.com 191 (Gujarat)] Sec 32(1)(ii) - Any right (including leasehold rights) which enables carrying on business effectively and profitably is an “intangible asset” & eligible for depreciation [Source: Tirumala Music Centre (P) Ltd vs. ACIT (ITAT Hyderabad) ITA No. 37/HYD/2012]

Sec 37(1) - Depreciation cannot be disallowed on ground that part of areas in mall remained unutilized [Source: E-CITY ENTERTAINMENT (INDIA) (P.) LTD. V. ACIT(2013) 39 taxmann.com 120 (Mumbai - Trib.)]

Sec 40(a)(ia) - Disallowance u/s 40(a)(ia) applies only to amounts “payable” at the end of the year and not to amounts “paid”.


[Source: ITO vs. M/s.Theekathir Press (ITAT Chennai) ITA No. 2076/Mds/2012]

Sec 40(a)(ia) - Disallowance u/s 40(a)(ia) would apply even to the amounts that have already been paid during the year. It is also clarified that if the High Court takes a view contrary to that taken by the CBDT, the CBDT’s view would not apply in that jurisdiction though steps should be taken to decide whether a SLP should be filed or legislative amendments made. [Source: Circular No. 10/DV/2013] Sec 41(1) - Liability outstanding for long period of time is assessable as income (despite no write-back in A/cs) if assessee is unable to prove genuineness of liability [Source: ITO vs. Shailesh D. Shah/ Yusuf R Tanwar vs. ITO (ITAT Mumbai) ITA No.7012/M/10]

Losses in Speculation business Sec 73 - Loss from shares dealing cannot be deemed to be from “speculation” under Explanation to s. 73 if company is not engaged in the “business” of shares dealing [Source: CIT vs. Orient Instrument Pvt. Ltd (Delhi High Court) ITA No. 112/2000]

Transfer Pricing Sec 92 - TNMM under Rule 10B(1)(e) contemplates ALP determination with reference to the relevant factors (cost, assets, sales etc.) of the assessee and not those of the AE or third party. Assessee’s study report cannot be discarded without showing how it is wrong. Finding that assessee is a risk bearing entity should be based on tangible material [Source: Li And Fung India Pvt. Ltd vs. CIT (Delhi High Court)ITA 306/2012]

Sec 92C -Quotation price isn’t analogous to actual price paid; former can’t be used for benchmarking under CUP method [Source: SINOSTEEL INDIA (P.)LTD. DY. CIT (2013) 40 taxmann.com 240 (Delhi - Trib.)]

Determination of Tax in certain special cases Sec 115AD - High Court verdict in Bharat Ruia 337 ITR 452 (Bom) on taxation of derivatives as speculation income/ loss is not applicable to FIIs [Source: Platinum Asset Management Ltd vs. DDIT (No. 2) (ITAT Mumbai) I.T.A.No.2787/M/2012] Search & Seizure Sec 132 -Copy of search warrant should be given to the searched person. Defects in the panchnama do not invalidate the search or the s. 153A assessment proceedings [Source: MDLR Resorts Pvt. Ltd vs. CIT (Delhi High Court)Writ Petition (Civil No. 823/2013]


Sec 132 - Search conducted in pursuance of authorization issued in absence of the eventualities mentioned in clauses (a) to (c) of sub-section (1) of section 132, cannot be said to be valid search [Source: PARMA RAM BHAKAR V. DY. CIT (2013) 39 taxmann.com 119 (Jodhpur - Trib.)]

Procedure for Assessment Sec 143(1) - CBDT Relaxes Time Period For Issue Of Refund Intimations. [Source: Instruction No. 18/2013 dated 17.12.2013]

Sec 147 - In case of retrospective legislative amendment, rectification under section 154, as well as reopening of assessment under section 147 are permissible as they are not mutually exclusive. [Source: ESTER INDUSTRIES LTD. V. UNION OF INDIA(2013) 39 taxmann.com 107 (Delhi)] Sec 153A/ 153C -Important principles of law relating to search assessments explained:

a) the satisfaction u/s 153C has to be recorded by the AO of the searched person and not by the AO of the assessee

b) the scope of assessment u/s 153A & 153C depends on whether the original assessment proceedings are pending or concluded. If a s. 143(1) intimation is passed and the time limit for issue of a s. 143(2) notice has lapsed, the assessment is concluded. In such cases, the s. 153A/ 153C assessment has to be based only on incriminating material found in the search

c) S. 153A/ 153C permits the AO to issue a notice for six AYs preceding the AY in which the search took place.

[Source: V. K. Fiscal Services Pvt. Ltd vs. DCIT (ITAT Delhi) ITA No.5465/Del/2012]

Interest on Refund Sec 244A - Assessee is entitled to interest on cash appropriated during search even if refund is directed in appeal proceedings [Source: Chironjilal Sharma HUF vs. UOI (Supreme Court) Civil Appeal No. 10601/2013]


Appeal to High Court Sec 260A(4) -High Court has power to hear the appeal on questions not formulated at the stage of admission of the appeal. [Source: CIT vs. Mastek Limited (Supreme Court)CC 3075/2013]

Penalties Sec 271(1)(c) - Penalty cannot be levied if the assessee discharges the primary burden by a cogent explanation and the AO is unable to rebut it. MAK Data (SC) explained [Source: CIT vs. M/s. Gem Granites (Karnataka) (Madras High Court) ITA No. 504/2009]


INDIRECT TAX Service Tax

Case Law CENVAT Allowing use of passive infrastructure and mobile tower sites to be deemed as a service and not sales Providing passive infrastructure along with mobile tower site and maintenance services to various mobile operators on sharing basis doesn't amount to transfer of right to use such infrastructure; it is not a deemed sale but a service liable to service tax. [Source: Indus Towers Ltd. vs Union of India, [2013] 39 taxmann.com 37 (Delhi)]

Rectification application may be filed before Tribunal within six months from date of receipt of order Rectification application before Tribunal may be filed within 6 months from receipt of order; not necessarily within 6 months from date of order Argument that precedent decision of Tribunal was wrongly applied is a legal submission and does not amount to mistake apparent from record [Source: Comm. of Cent. Ex., Meerut vs Sarang Foods (P.) Ltd., [2013] 39 taxmann.com 65 (New Delhi - CESTAT)]

Supreme Court slams department for levying ST penalty under Sections 76 and 78; grants stay on recovery As per section 78 if penalty is payable under this section, penalty cannot be imposed under section 76; further, in adjudication order, there was finding that assessee had not indulged in fraud, collusion or wilful mis-statement, hence, demand of penalty was stayed [Source: British Airways PLC India Branch vs Comm. of Ser. Tax, New Delhi, [2013] 38 taxmann.com 414 (SC)]

Services of providing market platform can’t be regarded as Clearing & Forwarding agent Service Where, assessee, a co-operative society, was acting as a selling platform where sellers were bringing goods and buyers were buying goods, assessee could not be held to be Clearing and Forwarding Agent, as he was not engaged in collecting goods from seller (clearing) and dispatching goods to buyers (forwarding) [Source: Comm. of Cent. Ex. vs Salem Starch & Manufacturers 'Service Industrial Co-operative Society Ltd., [2013] 39 taxmann.com 69 (Madras)]


Cenvat Credit stands transferred to amalgamated company in Scheme of Amalgamation In case of amalgamation, Cenvat credit pertaining to amalgamating company stands transferred to amalgamated company but at same premises where amalgamating company was located; amalgamated company cannot transfer credit to new premises without actually transferring input/capital goods [Source: Heubach Colour (P.) Ltd. Vs Comm. of Cent. Ex, Surat, [2013] 38 taxmann.com 420 (Ahmedabad - CESTAT)]

Person paying duty and deemed as an assessee is eligible for Cenvat Credit Where, despite process not amounting to manufacture, by retrospective amendment of rule 16 of Central Excise Rules, 2002, wire drawing units were deemed to be assessee for certain period in respect of duty paid by them, said units were eligible for Cenvat credit as per CENVAT Credit Rules [Source: Raajratna Metal Industries Ltd. Vs Union of India, [2013] 39 taxmann.com 75 (Gujarat)]

Capital goods or inputs used at captive mines are eligible for credit If mines are captive mines so that they constitute one integrated unit together with concerned factory, capital goods/inputs used at such mines would be eligible for credit [Source: Tata Steel Ltd. Vs Comm. of Cent Ex, BBSR-II, [2013] 39 taxmann.com 36 (Kolkata - CESTAT)]

Credit of additional duty of custom is available even if paid through debit in DEPB Scheme Debit of any amount under DEPB Scheme is a mode of payment of duty on imported goods; therefore, assessee was entitled to Cenvat credit of additional duty of customs paid through debit in DEBP scheme [Source: Comm. of Cent Ex, Chennai 1 vs SPIC Heavy Chemicals Division Manali, [2013] 39 taxmann.com 47 (Madras)]

Credit of packing material is available even if final product is liable to duty on tariff value basis Where final product, being garments, are liable to duty based on tariff value, such tariff value is deemed to be inclusive of all charges including packing and, therefore, cost of packing used therein is eligible for 'input' credit [Source: Comm. of Cent Ex, Surat vs Rajhans Yarn Processors (P.) Ltd., [2013] 39 taxmann.com 64 (Ahmd - CESTAT)]

High Court stays recovery of service tax on profit earned out of toll collection High Court stays demand of service tax on amount retained by assessee from out of 'toll charges' after payment to NHAI, treating such retained amount as 'commission' [Source: Skylark Securitas (P.) Ltd vs Union of India, [2013] 40 taxmann.com 61 (Delhi)] No denial of credit to recipient merely on wrong payment of duty by supplier Officers having charge over recipient of inputs cannot be allowed jurisdiction to determine whether each of suppliers have rightly paid excise duty or not because if this is allowed it would lead to chaos; hence,


denial of credit to recipient of inputs on ground that supplier need not have paid duty was without jurisdiction [Source: Comm. of Cent Ex, Faridabad, Delhi-IV vs Synmedic Lab, [2013] 39 taxmann.com 46 (New Delhi - CESTAT)]

Services in relation to aircraft used for business visit of Managing Director of Company are eligible for credit Maintenance of aircraft owned by assessee and used by its Managing Director in course of its business activity is eligible for input service credit [Source: Lakshmi Machine Works Ltd vs Comm. of Cent Ex, Coimbatore, [2013] 39 taxmann.com101 (Chennai- CESTAT)]


COMPANY LAW UPDATES Circular/Notification/Guidance Clarification with regard to holding of shares or exercising power in a fiduciary capacity - Holding and Subsidiary relationship under Section 2(87) of the Companies Act, 2013 The Ministry of Corporate Affairs (MCA) has hereby clarified that the shares held by a company or power exercisable by it in another company in a 'fiduciary capacity' shall not be counted for the purpose of determining the holding-subsidiary relationship in terms of the provision of section 2(87) of the Companies Act, 2013. [Source: General Circular No. 20/2013 dated 27th December, 2013] Clarification with regard to applicability of section 182(3) of the Companies Act, 2013 Ministry has received representations seeking clarification on disclosures to be made under section 182 of the companies Act, 2013. The same have been examined. With the coming into force of the scheme relating to 'Electoral Trust Companies' in terms of section (24AA) of the Income Tax Act, 1961 read with Ministry of Finance Notification No. S.O.309(E) dated 31st January, 2013 it will be expedient to explain the requirements of disclosure on part of a company of any amount or amounts contributed by it to any political parties under section 182(3) of the Companies Act, 2013. It is hereby clarified as under:

1) Companies contributing any amount or amounts to an Electoral Trust Company for contributing to a political party or parties are not required to make disclosures required under section 182(3) of Companies Act 2013. It will suffice if the Accounts of the company disclose the amount released to an Electoral Trust Company.

2) Companies contributing any amount or amounts directly to a political party or parties will be required to make the disclosures laid down in section 182(3) of the Companies Act, 2013.

3) Electoral Trust Companies will be required to disclose all amounts received by them from other companies/sources in their Books of Accounts and also disclose the amount or amounts contributed by them to a political party or parties as required by section 182(3) of Companies Act, 2013.

[Source: General Circular No. 19/2013 dated 10th December, 2013]


RBI UPDATES Circular/Notification/Guidance Foreign Direct Investment- Pricing Guidelines for FDI instruments with optionality clauses In terms of the extant instructions only equity shares or preference shares/debentures are eligible to be issued to persons resident outside India under the Foreign Direct Investment Scheme in terms of Regulation 5 (1) of Foreign Exchange Management (Transfer and Issue of shares by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000. It has now been decided that optionality clauses may henceforth be allowed in equity shares and compulsorily and mandatorily convertible preference shares/debentures to be issued to a person resident outside India under the Foreign Direct Investment (FDI) Scheme. The optionality clause will oblige the buy-back of securities from the investor at the price prevailing/value determined at the time of exercise of the optionality so as to enable the investor to exit without any assured return. The provision of optionality clause shall be subject to the following conditions:

1) There is a minimum lock-in period of one year or a minimum lock-in period as prescribed under FDI Regulations, whichever is higher (e.g. defence and construction development sector where the lock-in period of three years has been prescribed). The lock-in period shall be effective from the date of allotment of such shares or convertible debentures or as prescribed for defence and construction development sectors, etc. in Annex B to Schedule 1 of Notification No. FEMA. 20 as amended from time to time;

2) After the lock-in period, as applicable above, the non-resident investor exercising option/right shall be eligible to exit without any assured return, as under:

a) In case of a listed company, the non-resident investor shall be eligible to exit at the market price prevailing at the recognized stock exchanges;

b) In case of unlisted company, the non-resident investor shall be eligible to exit from the investment in equity shares of the investee company at a price not exceeding that arrived at on the basis of Return on Equity (RoE) as per the latest audited balance sheet. Any agreement permitting return linked to equity as above shall not be treated as violation of FDI policy/FEMA Regulations. Note: For the above purpose, RoE shall mean Profit after Tax / Net Worth; Net Worth would include all free reserves and paid up capital.

c) Investments in Compulsorily Convertible Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS) of an investee company may be transferred at a price worked out as per any internationally accepted pricing methodology at the time of exit duly certified by a Chartered Accountant or a SEBI registered Merchant Banker. The guiding principle would be that the non-resident investor is not guaranteed any assured exit price at the time of making such investment/agreement and shall exit at the price prevailing at the time of exit, subject to lock-in period requirement, as applicable.

[Source: RBI/2013-14/436 A.P. (DIR Series) Circular No.86 dated 09th January, 2014]


Borrowing and Lending in Rupees - Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds Regulation No. 6 (2) of Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 (Notification No. FEMA 4/2000-RB dated May 03, 2000) imposes restrictions on person resident in India who have borrowed in Rupees from a person resident outside India to the effect that such borrowed funds cannot be used for any investment, whether by way of capital or otherwise, in any company or partnership firm or proprietorship concern or any entity, whether incorporated or not, or for relending. On a review, it has been decided to permit such resident entities / companies in India, authorised by the Government of India, to issue tax-free, secured, redeemable, non-convertible bonds in Rupees to persons resident outside India to use such borrowed funds for the following purposes:

a) for on lending / re-lending to the infrastructure sector; and b) for keeping in fixed deposits with banks in India pending utilization by them for permissible end-uses.

[Source: RBI/2013-14/416 A.P. (DIR Series) Circular No.81 dated 24th December, 2013] External Commercial Borrowings (ECB) by Holding Companies / Core Investment Companies for the project use in Special Purpose Vehicles (SPVs) In order to strengthen the flow of resources to infrastructure sector, it has been decided to permit Holding Companies / Core Investment Companies (CICs) coming under the regulatory framework of the Reserve Bank to raise ECB under the automatic route/approval route, as the case may be, for project use in Special Purpose Vehicles (SPVs) with the following terms and conditions:

1) The business activity of the SPV should be in the infrastructure sector where “infrastructure” is defined as per the extant ECB guidelines;

2) The infrastructure project is required to be implemented by the SPV established exclusively for implementing the project;

3) The ECB proceeds is utilized either for fresh capital expenditure (capex) or for refinancing of existing Rupee loans (under the approval route) availed of from the domestic banking system for capex as per the extant norms on refinancing;

4) The ECB for SPV can be raised up to 3 years after the Commercial Operations Date of the SPV; 5) The SPV should give an undertaking that no other method of funding, such as, trade credit (if for

import of capital goods), etc. will be utilized for that portion of fresh capital expenditure financed through ECB proceeds;

6) The ECB proceeds should be kept in a separate escrow account as per the extant guidelines on parking of ECB proceeds pending utilization for permissible end-uses and use of such proceeds should be strictly monitored by the ADs for permissible uses;

7) In case of Holding Companies that come under the Core Investment Company (CIC) regulatory framework of the Reserve Bank, the additional terms and conditions for raising ECB for project use in SPVs will be as under:


a) The ECB availed is within the ceiling of leverage stipulated for CICs, i.e., their outside liabilities including ECB cannot be more than 2.5 times of their adjusted net worth as on the date of the last audited balance sheet; and

b) In case of CICs with asset size below Rupees 100 crore, the ECB availed of should be on fully hedged basis.

[Source: RBI/2013-14/397 A.P. (DIR Series) Circular No.78 dated 03rd December, 2013]


CORPORATE FINANCE

Latest News Private Equity Accel Partners, Ventureast Acquire Stake In Portea Medical Delhi-based Portea Medical which was acquired by K Ganesh and Meena Ganesh has divested over 30% stake in the company to US VC firm - Accel Partners and Ventureast for $8 Mn. Portea Medical is the provider of home healthcare services in India. Its clinical procedures were developed in consultation with leading home healthcare professionals in the United States. It undertakes more than 2,000 home visits in four cities at present, but will expand operations to the top 10 cities in the next few months. It has over 150 doctors, nurses and physiotherapists on rolls currently. [Source: Next Big What, December 2, 2013] CX Partners Invests In Natco Pharma CX Partners has invested around $18 Mn in Natco Pharma by subscribing to 17 lac equity shares at R638.40 per scrip. The investment would help Natco to augment its manufacturing capacities, broaden its product portfolio and target new markets. [Source: Deal Curry, December 2, 2013] Xander Group To Invest In Nitesh Estates Xander group is investing R300 Cr into a project being developed by Bangalore based Nitesh Estate. The project is focused on the retail segment across a prime 8-acre land in Koramangala, a retail and commercial hub in Bangalore, the land for which was acquired for R380 Cr. [Source: Business Standard, December 3, 2013] Warburg Pincus, Faering Capital Invests In BIBA Apparels Warburg Pincus and Faering Capital have invested around R300 Cr in girls’ ethnic wear- BIBA Apparels Pvt. Ltd. providing an exit to the existing investor, Future Lifestyle Fashions. This transaction is the largest PE investment in the Indian ethnic wear market. The investment will enable the Company to evolve into a ‘Fashion House’ catering to all ethnic wear requirements of women and girls across income levels, in India and abroad. [Source: Deal Curry, December 5, 2013] Council Capital, Baird Capital Invests In emids Technologies Healthcare focused technology service firm, emids Technologies has raised $13 Mn from US based Council Capital and Baird Capital to fund its acquisition plans. The company plans to use the funds for acquisitions mainly targeting healthcare consulting firms to strengthen its foothold and expertise in healthcare subject matter and hard technology skills. Founded by Saurabh Sinha, emids provides high quality consulting, information technology and business process management solutions to the healthcare industry. [Source: Next Big What, December 6, 2013]


TechMed Healthcare Secures Investment From Matrix Partners Matrix Partners has acquired a minority stake in Chennai-based TechMed Healthcare for an undisclosed amount of investment. Founded in 2009 by TG Rajaramanan and Wasim Mohideen, TechMed Healthcare is a Hospital Lab Management pathology chain in South India. It aims to provide faster and accurate pathology test results within hospital premises at affordable costs while eliminating operational and commercial hassles for hospital management. [Source: Startup Central, December 10, 2013] Actis Exits Sterling Hospital Actis has exited its investment in Sterling Hospital by selling its 82% stake to Addlife Investment Private Limited, a company promoted by Girish Patel, Chairman of Sterling. [Source: Deal Curry, December 12, 2013] Quadria, DEG, Swedfund Invest In Medica Synergie Quadria Capital along with German and Swedish Development finance has invested an undisclosed amount in Medica Synergie for a majority stake. The investment will be utilized to facilitate the growth of Medica's hospital network to over 1,300 beds and provide greater access to high-quality medical care in the region. [Source: Deal Curry, December 19, 2013]

Carlyle Group Acquires Stake In Global Health The Carlyle Group has acquired a minority stake in Indian hospital and healthcare provider Global Health Private Ltd. Avenue Capital, which holds a 27.96% stake in the company, was exploring a potential exit from Medanta. Led by cardiac surgeon Dr Naresh Trehan, Global Health operates a 900 bed hospital in the National Capital Region of Delhi. It is engaged in the business of establishing, owning and managing hospitals to provide healthcare, pathology and other medical services. [Source: Deal Curry, December 20, 2013] Madhya Bharat Phosphate Secures Growth Funding From SEAF Fund Bhopal based fertilizer manufacturer, Madhya Bharat Phosphate Pvt Ltd has raised an undisclosed amount of funding from SEAF India Agribusiness Fund, an India focused fund investing in agriculture related businesses. The funding which marks the first of its kind PE Investment in the Indian fertilizer sector would be utilized for expanding the company’s current capacities as well as for inorganic growth. [Source: Deal Curry, December 17, 2013] Wildcraft Secures Investment From Sequoia Capital Sequoia Capital has invested R70 Cr in the outdoor gear retail chain Wildcraft. The funds will be used to increase its production capacity over the next four years. Wildcraft started in 1992 by Dinesh KS is today an internationally recognized brand. It manufactures outdoor gear like rucksacks, backpacks, travel gear, camping gear, tents, sleeping bags, camera bags and accessories. [Source: Times of India, December 17, 2013]


Merger & Acquisition Al Dahra Invests In Kohinoor Foods Abu Dhabi based Al Dahra International Investment LLC has made an investment of R112.77 Cr in Kohinoor Foods by subscribing to 70.48 Lac shares of the company at R160 each on a preferential basis. Al Dahra International Investment LLC is a subsidiary of Al Dahra Holding LLC, which has invested in food production in various countries such as the US and Spain. Al Dahra Holding deals with production and distribution of products such as wheat, rice, potatoes, corn, olives, dates and grapes. Kohinoor Foods makes an extensive range of food products like basmati rice, ready-to-eat products, cook-in sauces, cooking pastes, spices, seasonings and frozen food. [Source: BSE Filings, December 6, 2013] EDF Energies, EREN Pick Up Stake In ACME Solar EDF Energies Nouvelles (EDF EN), the renewable energy arm of state-run electricity utility Electricite de France S.A, and EREN a French renewable energy company have picked up 25% stake each in ACME Solar Energy Private Limited, a wholly owned subsidiary of ACME Cleantech Solutions. The subsidiary which will be now turned into a JV between ACME Cleantech, EDF Energies Nouvelles and EREN intends to set up large scale solar power plants in India with an initial portfolio of 200 MW of solar projects in various phases. As part of the deal, the French companies will invest R550 Cr over three years in ACME’s plans. ACME has a current capacity of 17.5 MW of solar generation and is developing a 25 MW project in Madhya Pradesh and another 25 MW in Odisha. [Source: Economic Times, December 6, 2013] Avan Projects Acquires Majority Stake In Papa John's India Avan Projects has acquired over 80% stake in OM Pizza & Eats, Papa John’s franchisee in India taking over the day-to-day operations of all Papa John’s restaurants in India, and development rights for certain regions of the country. Headquartered in Louisville, Kentucky, Papa John's International, Inc. (PZZA) is the world's third largest pizza delivery company. [Source: Livemint, December 10, 2013] Torrent Buys Elder Pharma's Domestic Formulation Biz Torrent Pharmaceuticals is acquiring the branded domestic formulation business of Elder Pharma in India and Nepal for a total of R2004 Cr. The transaction which has received the consent of both the shareholders is


expected to conclude in H1 of 2014. Elders India business which comprises a portfolio of over 30 brands across various segments which include women women's healthcare, pain management, wound care and neutraceuticals therapeutic segments is sold as a going concern on a slump sale basis. [Source: Deal Curry, December 13, 2013] Clariant To Acquire Masterbatch Biz From Plastichemix Clariant Chemicals is acquiring the masterbatch business from Gujarat based Plastichemix Industries for a total consideration of R135 Cr. The acquisition which has received the approval of shareholders is expected to be concluded in Q1 2014. Post the acquisition Clariant would be the largest masterbatches business producer in India. Plastichemix started out as manufacturer of polyethylene masterbatches for blown film extrusion, however now it covers all the major polymers and applications. [Source: BSE Filings, December 16, 2013] Alstom T&D Sells Bangalore Property Alstom T&D India, an arm of French multinational conglomerate Alstom has sold its land in Bangalore which was previously used for manufacturing instrument transformers to a large Indian Business Group Company for a total consideration of R120 Cr. Alstom T&D India Limited (ATDIL), formerly AREVA T&D India Limited is engaged in power generation, power transmission and rail infrastructure, and technologies. [Source: BSE Filings, December 17, 2013] DHFL Acquires DLF's Stake In DLF Pramerica Realty firm DLF has divested its 74% stake in JV DLF Pramerica Life Insurance to Dewan Housing Finance for an estimated R250-300 Cr in a move to divest its non-core assets. [Source: BSE Filings, December 19, 2013] Welspun Corp Buys Out JV Partner Leighton Group Welspun Corp has announced the acquisition of the entire 39.88% stake of Leighton Group in the JV Leighton Welspun Contractors India Private Limited through its subsidiary Welspun Infra Projects for $99 Mn. Post the stake sale, the JV will be renamed as Leighton India. Welspun’s decision to exit the venture was aimed at repositioning itself in the infrastructure space. The net proceeds received by Welspun will primarily be utilised to deleverage its balance-sheet. [Source: BSE Filings, December 26, 2013] Brigade Group Acquires Hindustan Coca-Cola's Bangalore Land Real estate developer Brigade Enterprises has acquired 2.25 Acres of land at Bangalore from Hindustan Coca-Cola Beverages for R68.83 Cr for developing a prime real estate project. Established in 1986 is a Brigade Group has a portfolio that covers property development, property management services, hospitality and education. [Source: BSE Filings, December 27, 2013]


Venture Capital Eventifier Secures Funding From Accel Partners, Kae Capital Accel Partners along with the existing investor Kae Capital has invested $500,000 in Bangalore-based startup Eventifier. The amount will be used to hire data scientists and push up the sales and marketing efforts. The platform helps event organizers, collects and arranges all the related content from that event from social streams like Twitter, Facebook, Instagram, etc. event information is then displayed on a unique event page. [Source: Next Big What, December 3, 2013] Career Planning Platform iDreamCareer Secures Angel Funding Delhi-based career planning platform iDreamCareer has raised an undisclosed amount of funding from an Indian investor based out of Middle East. The company would use the funds for product development and to set up distribution networks for its recently launched career planning kit in India, Nepal, Bhutan, Sri Lanka, Dubai and Pakistan. Founded by Ayush Bansal and Pravesh Dudani, iDreamCareer aims to equip school children with tools and resources which provide effective career guidance and can help them make a better career choice. [Source: Iamwire, December 5, 2013] Traffline Receives Funding From Matrix Partners Mumbai-based traffic info startup Birds Eye Systems has raised an undisclosed amount of Series A funding from Matrix Partners, NextBigWhat states. Birds Eye Systems is a startup which offers real-time traffic and travel information for Indian cities. Apart from its product Traffline which was launched in 2012, it also provides software and mobile applications, for transport related applications. [Source: Next Big What, December 7, 2013] Spire Technologies Secures Series A Funding To fuel product development and company expansion plans, big data analytics & contextual search technology firm Spire Technologies and Solutions has raised $8 Mn in Series A funding from an unnamed institutional investor. Spire offers solutions that can help companies with hiring fresh talent, providing market intelligence, customer relationship management (CRM), and preventing of employee frauds. [Source: TechCrunch, December 13, 2013] Welcare Health System Secures Investment From Unitus Seed Fund


Chennai based affordable eye screening services company, Welcare Health Systems Private Limited has raised an undisclosed amount of funding from seed stage VC fund Unitus Seed Fund. The eyecare solution provider who currently serves in Amritsar and Vijaywada apart from Chennai plans to use the funds to expand its presence across the country. [Source: Economic Times, December 18, 2013] Ennovent, Ankur Capital Invests In ERC Eye Care Assam-based ERC Eye Care has raised funds form Ennovent Impact Investment Holding and Ankur Capital along with participation from angel investor Sadeesh Raghavan and Ennovent Circle. Founded by Parveez Ubed, ERC-eye care center provides low-cost, high-quality eye care and surgical procedures to the marginalized population. It also offers Consultation, Pharmacy, Diagnostic tests, Optical retail and Surgery. [Source: Economic Times, December 18, 2013] IndiaProperty Raises Series B From Bertelsmann Real estate online portal IndiaProperty.com has raised $12 Mn in Series B round of funding led by Bertelsmann, with participation from existing investors Canaan Partners and Mayfield Fund, BL states. The company plans to use the proceeds to improve technology to accommodate more home searchers on its Website, widen in brand reach, and expand into tier-II markets. [Source: Business Line, December 20, 2013] Dental Chain Fine Feather Secures Second Round Of Funding Vanamo Care owned dental healthcare chain Fine Feather has raised second round, divesting 18% stake. The funds will be used to launch 20 additional clinics over next couple of years and expand its market presence. Founded by Manish Jobanputra, Manish Sharma and Keval Shah, Gujarat based Vanamo Care Private Limited specializes in dental healthcare and operates a chain of dental clinics under the brand Fine Feather. It provides treatment to all dental ailments through service delivery like dental warranty. Currently the healthcare chain runs 6 clinics in Ahmedabad. [Source: Deal Curry, December 26, 2013]


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