Hi Folks
Derived from the Latin “agito” or “I move”, the symbol of the Paralympic Games is composed of three ‘agitos’ coloured red, blue and green encircling a single point on a white background. ‘Spirit in Motion’ is the motto of the recently concluded games in London, 2012. It signifies the winning spirit of the disabled or ‘differently enabled’ sportspersons, against all odds and obstacles. For many, their life itself is an obstacle but they have converted it into an opportunity, due to sheer determination, never-say-die attitude and above all self-belief.
“Obstacles are what we see when we take our eyes off the goals” said Joseph Cossman. Let us invoke the blessings of the ‘Remover of all Obstacles’, the elephant-faced Lord Ganesha to help us stay focused on our goals, whatever they may be.
In pursuance of its goal of knowledge sharing, Lexspeak continues to focus on delivering comprehensive, authentic & reliable news updates and useful, practical business information every fortnight.
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Lex Valorem Team

Due date for filing e-form 23AC and 23ACA (non XBRL) extended upto 15th October, 2012 or within 30 days from the date of AGM, whichever is later.
Currently Reserve Bank of India (RBI) has granted general permission for non-resident guarantee in respect of domestic loans raised and discharge of liability by such non-resident under the guarantee made on behalf of the principal debtor. Now such non-resident guarantee facility has been extended to non-fund facilities such as letter of credit/ guarantee/ letter of undertakings, the other provisions relating to discharge of liability by the non-resident guarantor under the guarantee and the subsequent repayment of the liability by the principal debtor remaining same.
In order to encourage the holding of Demat Account and to protect the interest of investors in securities, SEBI has made Basic Services Demat Account (BSDA) facility available to all depository participants.
Foreign direct investment (FDI) from Pakistan was permitted into India recently. The corollary i.e Overseas direct Investment (ODI) by Indian parties into Pakistan is permitted with the prior approval of the Government.
Advance pricing agreement scheme involving pre consultation filing in respect of persons proposing to enter into international transactions has been notified vide Income tax (10th Amendment) Rules, 2012
Refinancing of Bridge Finance (buyers’ / suppliers’ credit availed of), with an External Commercial Borrowings (ECB) under the automatic route for the infrastructure sector allowed subject to certain conditions.

The limit of External Commercial Borrowings (ECB) raised to:

  • 75% of the average foreign exchange earnings realized during the immediate past three financial years´┐Żor
  • 50% of the highest foreign exchange earnings realized in any of the immediate past three financial years, whichever is higher;
  • Maximum External Commercial Borrowings (ECB) restricted to USD 3 billion.
E Payment of Custom duty is mandatory, where Custom duty per Bill of Entry is Rs. 100,000 or more.
Companies in Infrastructure sectors can raise External Commercial Borrowings (ECB) and avail trade credit upto maximum period of 5 years for import of capital goods subject to certain conditions

  • Short term roll overs not allowed
  • Issue Letters of Credit/Guarantees/Letter of Undertaking (LoU) /Letter of Comfort (LoC) in favour of overseas supplier or bank not permitted beyond 3 years.
Continuing the series on Accounting Standards, the article focuses on AS 7 relating to Revenue recognition for construction contracts.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

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