News Digest: Fortis probe, Birla-Piramal clash, big fall of rupee, and more

Probe reveals lapses in loans given to entities linked to Malvinder-Shivinder

1. Fortis Healthcare initiates recovery of funds from Singh brothers

A probe ordered by Fortis Healthcare has found systemic lapses with respect to loans granted to entities related to former promoters, resulting in doubtful recovery, widening of loss, and litigation. 

The hospital chain posted a net loss of Rs 9.32 billion in the fourth quarter (Q4) of 2017-18, against a loss of Rs 680 million in the same quarter last fiscal year. The loss widened due to exceptional items of Rs 8.33 billion, including Rs 5.8 billion being the provision for inter-corporate deposits (ICDs), among others. The financial result was not reviewed by Deloitte, the company’s auditor. 

The company also announced the resignation of independent director Rohit Bhasin. Read more...

2. Rupee depreciates 0.55% to near its lowest ever on China-US trade war

The rupee on Wednesday neared its all-time low, as most emerging market (EM) currencies fell to protect their relative competitive advantage vis-à-vis the Chinese renminbi after it depreciated, reacting to US tariff on Chinese goods.

The rupee closed at 68.63 a dollar, about 0.29 per cent away from its record low closing of 68.83 a dollar reached on August 28, 2013. While far from being a currency war, India does not have much of an option but to depreciate to accommodate its exports at a time when China shows its intent to let its currency depreciate. Read more...

3. Piramal-Birla friction surfaces over Binani cement acquisition at PM meet

Aditya Birla Group Chairman Kumar Mangalam Birla and Piramal Group Chairman Ajay Piramal voiced their differences on bankruptcy proceedings in a meeting with Prime Minister (PM) Narendra Modi, along with other business leaders, in Mumbai on Tuesday. 

Piramal and Birla are pitted against each other in the National Company Law Tribunal (NCLT) process for the acquisition of Binani Cement.

According to a source who attended the meeting, Piramal informed the PM that the NCLT process was being vitiated by some players who had lost the race at the bidding stage but were trying to get back into the process through other means.  Read more...

4. I-T to examine poll candidates' finances ahead of state, general elections

Ahead of both state assembly and general elections, the income tax department (I-T) has decided to scrutinise candidates’ income and wealth as declared by them in their poll affidavits.

This is part of an action plan drawn up by the Central Board of Direct Taxes (CBDT), which also includes other measures to shore up tax revenue and take action against evaders.

Until now, the CBDT, according to its arrangement with the Election Commission (EC), only scrutinised cases that were being referred to it by the EC. From this year, tax officials will look at the financial details of all candidates. Read more...