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Top 10 biz headlines: IndiGo row, special audit of Jet books, and more

From Walmart Q1 to Infosys granting stock units, Business Standard brings you top stories that made news on Thursday

BS Web Team  |  New Delhi 

IndiGo
The logo of IndiGo Airlines is pictured on passenger aircraft | Photo: Reuters

IndiGo's minority shareholders approach board, question deals and contracts

Minority shareholders of IndiGo, the largest airline in the country by market share, have approached the board of directors, alleging operational mismanagement in the company, according to sources close to the matter. These shareholders have questioned contracts and deals signed by the company, it is learnt. Read more here

A fourth of India's top 1,000 listed companies of FY14 in trouble now

Nearly 25 per cent of India’s top 1,000 listed companies, excluding banks and financials, in terms of revenue have seen shareholder wealth erosion.

These firms have lost more than half their market capitalisation in the past five years and are highly indebted, raising questions on their financial and operational viability. Read more here

Q1 operating income declines 41.7% primarily due to Flipkart

Walmart, the world’s largest retailer, said its reported international operating income in the quarter declined 41.7 per cent and went down 37.5 per cent in constant-currency terms, primarily on account of Flipkart.

The Bentonville-based company (in Arkansas) is locked in a battle with US rival Amazon for dominance in India’s online retail market through online retailer Flipkart, which it acquired for $16 billion last year in May. Read more here

I-T dept to conduct a special audit of grounded books

The income-tax (I-T) department is set to appoint an independent auditor to conduct a special audit of the books in connection with the commission paid by the airline to its Dubai-based group entities for allegedly evading Rs 850 crore in taxes, according to an official privy to the development.

The move follows the tax survey report submitted by the investigation wing of the department, which had flagged discrepancies in transactions between Jet and its Dubai-based companies. Read more here

Infosys grants stock units worth Rs 10 crore to CEO Salil Parekh

Infosys’ board on Thursday proposed granting equity shares worth Rs 10 crore to Chief Executive Officer Salil Parekh as part of a new stock incentive plan aimed at retaining talent.

Chief Operating Officer and Whole-time Director UB Pravin Rao will get shares worth Rs 4 crore. In all, 50 million shares will be allocated to employees, subject to shareholders’ approval, under the initiative called ‘Infosys Expanded Stock Ownership Program 2019’. Read more here

YES Bank claws back Rs 1.44-crore performance bonus of ex-MD Rana Kapoor

YES Bank retracted the performance bonus of Rs 1.44 crore of former Managing Director and Chief Executive Officer Rana Kapoor, whose term was cut short by the Reserve Bank of India (RBI) in October last year.

“The board of directors of the bank had considered and approved clawback of 100 per cent of the performance bonus paid to Mr. Rana Kapoor for FY 2014-15 (FY15) and FY16, net of taxes. The amount of bonus subject to clawback was Rs 6.2 million for FY15 and Rs 8.25 million for FY16,” said the bank in its annual report on Thursday. Read more here

Mahindra, Tata Motors set to ride on RBI push for cash vans contracts

Mahindra & Mahindra (M&M) and Tata Motors will get a shot in the arm with cash logistics companies (CLC) set to place orders for nearly 7,000 upgraded cash vans valued at about Rs 650-700 crore. This follows a Reserve Bank of India (RBI) diktat calling for stricter security protocols for CLCs given the increasing reliance of banks on outsourced service providers and their sub-contractors. Read more here

India to frame indigenous EV charging station norms

In a first, India plans to come up with its own standards for charging stations for its emerging electric vehicle (EV) ecosystem. To start with, the Bureau of Indian Standards (BIS) and the Department of Science and Technology (DST) are working on an indigenous charging standard that will also help reduce the cost of establishing charging stations for EVs in the country, Livemint reported.

GST anti-profiteering body may get fresh lease of life

India’s anti-profiteering framework may remain in place for another two years as the country eyes more changes to the goods and services tax (GST) structure. Aimed at protecting consumer interest under GST, it was initially meant to be in place for two years, the Economic Times reported.

Smaller cities emerging as magnets for migrants

Attractive incomes, ample employment opportunities and comparatively low living costs are driving interstate migrant populations to smaller cities that are emerging as counter-magnets to megalopolis. Analysis of various reports shows that smaller cities are rapidly growing, but at the same time struggling to cope with the infrastructure demands as civic revenue resources are on decline, the Hindu Businessline reported.

First Published: Fri, May 17 2019. 06:14 IST
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