Page 3915 - Business Finance
Rupee nosedives to 68 after 2-day gains, down 30 paise
After a brief respite, the rupee once again turned shaky and plunged by 30 paise to end at a fresh 16-month low of 68 against the US currency on renewed dollar buying interest amid global macro challenges. The forex sentiment wobbled after the crude prices broke the psychological threshold of USD 80 a barrel - spurring a fresh wave of dollar demand from state-run oil marketing companies fearing a further depreciation in rupee value. Traders also reported hedging-related demand as importers rushed to pay forward premium, putting additional pressure on the local currency. The rupee selloffs accelerated last week against the grim backdrop of surging global crude prices and growing concerns over widening twin deficits even as foreign investors reduced their rupee-dominated exposures. The home currency had recovered 37 paise in the last two days after hitting a low of 68.15 on Tuesday. Massive capital outflows have largely contributed to declines despite a series of measures taken by the ..
NCLT directs JP Associates to return 759 acre land to its arm Jaypee Infratech
The National Company Law Tribunal has asked debt ridden Jaiprakash Associates Ltd to return nearly 760 acre land to its subsidiary Jaypee Infratech, declaring the transfer of the land as "fraudulent" and "undervalued". In an order, the Allahabad bench of NCLT has directed JP group's flagship firm Jaiprakash Associates Ltd (JAL) to release and discharge interest created over the patch of land to lenders including ICICI Bank. The order came over a petition filed by Jaypee Infratech's resolution professional (RP) Anuj Jain in the NCLT seeking direction over the transactions entered by the company's promoters, creating mortgage on its 858 acre to secure debt for JAL. "The impugned transactions... are declared as fraudulent, preferential and undervalued transactions," said the two member bench comprising Saroj Rajware and VP Singh. In the 77-page order, the tribunal had listed out the details of six parcels of land totalling 759 acres land in Agra and Aligarh district of Uttar Pradesh. "We
SRF shares dive nearly 14% after Q4 results
Shares of chemicals firm SRF Ltd today plunged nearly 14 per cent after the company reported a 4 per cent decline in consolidated net profit for the quarter ended March. The stock dropped 13.79 per cent to end at Rs 1,924.20 on BSE. During the day, it tumbled 17.85 per cent to Rs 1,833.35. At NSE, shares of the company slumped 13.61 per cent to close at Rs 1,924.40. SRF Ltd has reported a 4 per cent decline in consolidated net profit at Rs 124 crore for the quarter ended March. Its net profit stood at Rs 129 crore in the year-ago period, the company said in a statement. Total income rose to Rs 1,625.30 crore in the fourth quarter from Rs 1,442.37 crore in the corresponding period of the previous year. SRF Ltd is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers technical textiles, fluorochemicals, specialty chemicals, packaging films and engineering plastics.
Tata Chemicals Q4 profit jump 4-fold to Rs 1,168.6 cr
Tata Chemicals today posted nearly four-fold jump in consolidated net profit at Rs 1,168.60 crore for the fourth quarter of 2017-18 largely on the back of exceptional gains from sale of its urea business to Yara Fertilisers India. Net profit stood at Rs 310.64 crore in the same quarter of previous fiscal, the company said in a regulatory filing. Tata Chemicals said its net income remained flat at Rs 2,628.83 crore during the January-March quarter of 2017-18 financial year against Rs 2,668.72 crore in the year-ago period. However, the company reported a net exceptional gain of Rs 1,266.72 crore on account of sale of its urea business to Yara Fertilisers India. The company has also entered into an agreement to sell its Haldia plant to the Netherlands-based Indorama Holdings by way of slump sale for Rs 375 crore. But the effect of the transfer will be reflected in the financial information for the period in which the deal is completed, the filing added. The board has recommended a ...
Tata Steel completes $5.2 billion purchase of bankrupt Bhushan Steel
(Reuters) - India's Tata Steel Ltd said on Friday it had completed the acquisition of a 72.7 percent stake in Bhushan Steel Ltd, which was in bankruptcy court over unpaid loans.
India to continue bond borrowing without interruption - official
NEW DELHI (Reuters) - India will continue its bond market borrowing programme without any interruption, a top finance ministry official said on Friday, amid worries about a lack of demand in its bond auctions.
Liquidated damages in contracts will attract GST: AAR
Liquidated damages, the penalty imposed on contractor for delay in execution of projects, will attract GST, said the Authority for Advance Rulings (AAR). The Mahashtra bench of AAR passed the order on an application filed by Mahashtra State Power Generation Company (Mahagenco). The company, which is engaged in power generation, sought the opinion of the AAR on whether Liquidated damages (LD) would attract GST and, if so, at what rate. "... GST would be applicable on the Liquidity Damages," AMRG & Associates Partner Rajat Mohan said, adding LD charges are a mandatory clause in high-value construction and maintenance contracts. "By construing it as a service and subjecting it to a levy of GST at 18 per cent could have momentous impact on innumerable businesses. Due to this ruling, most of the contractees are looking at colossal tax demands since July 2017 and the credit of which may also be in jeopardy," Mohan said. EY India Tax Partner Abhishek Jain said as per the AAR order, LD ..
67 Indian companies to participate in US investment summit
A total of 67 Indian companies would be participating in the 2018 SelectUSA Investment Summit next month to look for opportunities to invest or expand their business in the US, a senior US diplomat said here on Friday.
Sebi exempts govt from open offer for Allahabad Bank post capital infusion
Markets regulator Sebi today exempted the central government from making an open offer for the shareholders of Allahabad Bank following capital infusion. In January this year, the government had proposed capital infusion to the tune of Rs 1,500 crore in the public sector lender. According to a Sebi order, the infusion of additional capital by the government is stated to enable Allahabad Bank to meet regulatory capital norms. It would also provide the public sector lender with an additional leverage for raising further equity capital at a later date, as and when the need arises, the regulator said. Following the capital infusion in the public sector lender, the government's stake would rise in it by 7.03 per cent. Under Sebi norms, if the shareholding of an entity in a listed company goes beyond a particular threshold, then it has to make an open offer. As per Sebi, there would be no change in control of the lender pursuant to the proposed acquisition of additional shares by the ...
HUL becomes most valued FMCG firm in m-cap, surpasses ITC
Hindustan Unilever Ltd (HUL) today went past ITC in market valuation to become the most valued FMCG firm. At close of trade today, HUL commanded a market capitalisation (m-cap) of Rs 3,47,212.06 crore, which was Rs 2,867.88 crore more than that of ITC's Rs 3,44,344.18 crore valuation. With this, HUL also became the fourth most valuable Indian company. HUL was the top gainer among the 30-Sensex scrips. HUL yesterday briefly surpassed ITC in market valuation ranking to become the fourth most valued firm. Shares of HUL rose by 2.22 per cent to end at Rs 1,604.10 on BSE. Intra-day, it jumped 2.45 per cent to Rs 1,607.85. ITC's shares ended 1.13 per cent higher at Rs 282.15. During the day, it rose by 2.29 per cent to Rs 285.40. Tata Consultancy Services is the country's most valued firm with a valuation of Rs 6,70,450.51 crore, followed by Reliance Industries Ltd (Rs 5,91,353.05 crore), HDFC Bank (Rs 5,22,745.23 crore), HUL and ITC in the top five list. Diversified group ITC Ltd on ...
Precision Camshafts acquires 51% in Emoss for Rs 58 crore
Auto component maker Precision Camshafts (PCL) today said it has acquired 51 per cent stake in electric vehicle manufacturer Emoss Mobile Systems for Rs 58 crore. PCL, through its wholly-owned Dutch subsidiary PCL (International) Holding, acquired 51 per cent equity shares of Emoss Mobile Systems Netherlands for Rs 58 crore, the company said in a statement. The acquisition has been funded through a combination of loan sanctioned by Bank of Baroda, London and investments made by PCL through its internal generation in PCL Netherlands, according to the release. "Emoss has visibility to scale business five times in the next four years," it said. This is the third strategic acquisition by PCL in the last eight months. "With the strings of recent acquisitions, PCL is now poised for a positive growth trajectory by entering into a niche electric market segment," said Yatin Shah, chairman and managing director, PCL. Emoss manufactures and supplies complete integrated electric ...
Sebi extends time for comments on reducing listing time for public issue of debt securities
Markets regulator Sebi today extended the deadline till May 30 for public comments on proposed norms to drastically cut the timeline for listing of debt securities to six days from 12 days at present . The last date has been extended after taking into consideration, representations from various quarters as the initial deadline ended on May 14. In a statement issued today, Sebi said it has decided to extend time till May 30 for submission of public comments on the consultation paper regarding reduction in timelines for public issue of debt securities. Under the proposed norms, the regulator would reduce the timeline for listing of debt securities to six days from 12 days at present. Besides, the Securities and Exchange Board of India (Sebi) has proposed to make ASBA (Application Supported by Blocked Amount) mandatory for all the investors applying in a public issue of debt securities. The mandatory ASBA facility would reduce the time taken for collecting banks to commence clearing of ..
Central Bank's Q4 net loss widens over 3-fold to Rs 2,114 cr
Central Bank of India today said its net loss widened more than three-fold to Rs 2,114 crore in the March quarter due to higher provisioning for bad loans. The bank had reported a net loss of Rs 592 crore in the January-March quarter of the previous fiscal, 2016-17. Its total income during the fourth quarter of 2017-18 also declined to Rs 6,301.50 crore, from Rs 7,121.05 crore in the year ago period. "For the financial year ended March 31, 2018, the bank has incurred net loss of Rs 5,105 crore as compared to net loss of Rs 2,439 crore during previous financial year primarily due to higher NPA provisions, higher slippages/ageing and additional provision in NCLT accounts, significant decline in trading profit on investments, decline in net interest income etc," the bank said in a statement. Income during the year was also down at Rs 26,659 crore against Rs 27,537 crore in previous fiscal. The net interest income of the bank stood at Rs 6,517 crore in 2017-18, down from Rs 6,574 crore in
Inditrade Capital to exit equity broking business
South-based agri-commodity financier, Inditrade Capital, today announced its exit from equity broking business and will invest Rs 24 crore to buy additional stake in non banking finance company, JRG Fincorp. "Our focus for the last few years has been clearly on NBFC and microfinance. We have decided to exit our equity broking business. This move acted as a win-win situation for both entities allowing them to strengthen their southern presence and allowing us to concentrate on our lending business," the company's group chairman Sudip Bandyopadhyay said in a statement. It will acquire additional shareholding of up to 10 per cent for Rs 24 crore in JRG Fincorp. The company has divested its equity broking business to Choice Equity Broking, part of the Mumbai-based Choice group of companies. It plans to expand and introduce organised finance to benefit borrowers from unserved or underserved segments of the financial sector. "We plan to foray into housing finance with special
RBI allows NRIs to raise stake in Parag Milk to 24 pc
The Reserve Bank (RBI) has allowed non-resident Indians (NRIs) to raise their stake in Parag Milk Foods up to 24 per cent from earlier limit of 10 per cent. The Non Resident Indians (NRIs) investment limit under Portfolio Investment Scheme in Parag Milk Foods Ltd has been increased from 10 per cent to 24 per cent of its paid up capital, RBI said in a notification. FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS. The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling. Parag Milk Foods shares closed 5.79 per cent down at Rs 350.85.
Forex reserves fall by $1.237 bn to $417.702 bn
The country's foreign exchange reserves decreased by USD 1.237 billion to USD 417.702 billion in the week to May 11, on account of a fall in foreign currency assets, the Reserve Bank data showed today. In the previous week, the country's foreign exchange reserves had fallen by USD 1.426 billion to USD 418.940 billion. The reserves had touched a record high of USD 426.028 billion in the week to April 13, 2018. It had crossed the USD 400-billion mark for the first time in the week to September 8, but has since been fluctuating. In the reporting week, the foreign currency assets, a major component of the overall reserves, declined by USD 1.262 billion to USD 392.453 billion. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves. Gold reserves rose by USD 26.2 million to USD 21.687 billion in the reporting week, the data showed. The special drawing ..
Japan Nikkei gains to three and half month high on weak yen
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Oil prices set for sixth week of gains, India sounds alarm
LONDON (Reuters) - Brent oil prices rose on Friday and were set for a sixth straight week of gains, boosted by strong demand, looming sanctions on Iran, plummeting Venezuelan production and Nigerian disruptions, as Saudi Arabia moved to assuage supply concerns.
Despite challenging times, global business growth is on the rise, finds Epicor
Globally, manufacturing business growth has increased by 3.7 percent (to 103.7 index points) despite the fact that half of manufacturers admit they have grown under challenging circumstances. This is one of the key findings of the annual Global Growth Index, launched today by Epicor Software to promote business growth.Contributing to this score is a significant growth in the number of manufacturers reporting strong sales or turnover in the last 12 months up five percent from last year to 70 percent overall. A similar trend was observed with profits and product ranges, with a 3 percent boost in the number of businesses growing in each of these areas compared to last year.Comparing figures on a global scale, the Global Growth Index shows a solid performance from India - with manufacturers in this country outperforming global average figures in terms of expanding product ranges (75%), profits (83%), workforce (61%), geographic expansion (65%), and exports (also 65%).Apart from India, ...