No mention of handling black money issues in Budget, disappointing: Mr. Amit Ray, CEO, Uflex Ltd

Amit Ray, president and chief executive officer, flexible packaging business, Uflex Limited: Within his constraints, he (finance minister) has presented a good, well balanced budget. However, the boldness and paradigm shift that was required at this juncture is missing. It is disappointing that there was no mention of handling black money issues and channelling it back into the economy to support infrastructure and social upliftment programmes. 

Read more: Economic Times

Provide 100% depreciation on new machines required for packaging tobacco products

Says Mr. R K Jain – Group President (Finance & Accounts), Uflex Ltd. 

Tax Rate  
At present corporate tax rate is 30%, which effectively comes to 33.22 %, and if DDT (Dividend distribution tax) of 16.60 % is added to it, the effective rate of outgoing comes to more than 49%.
This rate of taxation is more than the tax rate of 17% in Singapore, Hong Kong and Taiwan or 25% rate applicable in china, Indonesia and Malaysia. This takes away the Indian corporate at loss in channelising resources on R&D, New technologies and diversification, manpower growth etc.
 Dividend Distribution Tax
Normal rate of tax is paid on dividend received from foreign subsidiaries. Dividend received should be taxed at 16.60% to give the indigenous as well as foreign subsidiary at level playing field and to give further boost to ODI or
 Dividend received from foreign subsidiaries should be deducted in computing the taxable dividend for the purpose of Dividend Distribution Tax.
 Ban on Pouches etc.
New investment will be required for packaging of tobacco products as per Supreme Court guidelines. Depreciation on investment in new machines should be allowed at 100% instead of general rate of 15% and expenditure on manpower should be given a weighted deduction to neutralize the Ban on use of plastic packaging and thus encourage the packaging industry.
 Deemed Dividend U/s 2(22)(e)
In view of changed Economic Scenario and overall Business Environment, provisions of section 2(22)(e) relating to deemed dividend for Advances or loans given by closely held companies to shareholder should be modified to exclude promoters (shareholders) or companies in which such promoter shareholders have a substantial interest. This will give an opportunity for group companies to work in unison.
 Mat Rate
Minimum alternate tax rate should be restored to 15%. Moreover MAT should be restricted to zero tax companies i.e. companies availing Chapter VI A deductions. Those companies, which are, not getting deduction under Chapter VI A, the tax rate (Mat) should be nominal say 10%.
 Depreciation Rate
Higher depreciation rate of 25% should be allowed on Plant & machinery instead of 15% at present.
 This will encourage the corporate sector to adopt new technologies faster leading to increase in productivity of manufacturing sector.
 Profit Linked Incentives
At present incentives under section 80-IB and 80-IC are available in the form of deduction of profits derived from units located in notified backward areas or hilly areas.
To give an impetus to the equal growth of all parts of India, industries set up in villages or small towns areas across the Country should also be given some benefits akin to Section 80-IB or 80-IC.
 Conversion of Pvt. Ltd Companies to LLP
At Present to escape capital gain tax, turnover of Pvt. Ltd. companies should not exceed Rs sixty lakhs in any of the three previous years before converting to LLP.
 Period of three years should be restricted to one year and turnover limit of sixty lacs rupees should be increased at least Rs 50 crore.
This will open the door to many more entrepreneurs to convert this Private Limited or closely held Companies into LLP format.
 Limit of cash payment
Present limit on expenditure on cash payment of Rs 20,000/- should be increased to Rs 50,000/-.
 New limit will enable to move economy faster and will take care of inflation. New limit should also be made applicable in case of payment made for plying, hiring or leasing goods carriages from the existing limit of Rs 35,000/-.

Uflex to provide cricket scholarship to underprivileged children

Uflex Ltd is providing scholarship to the 14 students selected through a Cricket Scholarship Camp organized by Stairs

The Uflex Stairs Cricket Scholarship Camp witnessed participation of around 74 children across Delhi, of which 14 were selected for induction into various cricket academies. 

Uflex which had recently adopted cricket initiatives taken by Stairs, an NGO working towards health, education and sports of underprivileged children, will bear all the expenses of the academy, which will be near the selected candidate’s place of residence in Delhi.

News 24

Uflex to set up new plant in Poland with an investment of USD 80 million

Uflex is setting up its fifth manufacturing facility in Wrzesnia in Poland with an investment of USD 80 million, which is expected to be operationalised in June 2012. Uflex already has its manufacturing facilities in India, Egypt, Dubai and Mexico.

The new plant will have a capacity of about 30,000 tonnes and will cater to the customers of Europe and Russia.

The total capacity production of the company is expected to touch around 3.83 lakh tonne with the addition of 30,000 tonne from the plant in Poland by 2012. 

Uflex has plans to add manufacturing lines for new product categories at its existing facilities in Egypt, Mexico and India with aggregate investments in excess of USD 250 million over the next year.



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