Page 4 - Business Finance
SpiceJet to be watched after launch of new international flights
SpiceJet announced the launch of eight new non-stop international flights from the country's busiest metros of Mumbai and Delhi. SpiceJet will service Mumbai-Riyadh-Mumbai, Mumbai-Dhaka-Mumbai, Delhi-Dhaka-Delhi and Delhi-Jeddah-Delhi with daily non-stop flights. The announcement was made after market hours yesterday, 25 June 2019.
US Fed 'grappling' with need for rate cut: Powell
America's grinding trade wars are darkening the economic horizon and could justify a decrease in interest rates, Federal Reserve Chairman Jerome Powell said Tuesday. But Powell also insisted the central bank was "insulated" from political pressures despite President Donald Trump's persistent criticism of the Fed chairman. Powell's speech in New York amplified the central bank's recent message that policymakers are ready to step in to protect the world's largest economy, which next week will mark its longest expansion on record but is showing increasing signs of strain. Markets overwhelmingly expect the Fed to cut rates next month as Trump's trade battles drag on and the global economy slows -- both factors that have begun to dent business confidence and investment in the United States. But Powell was careful to temper this message, warning that the central bank would not "overreact" to individual data points and short-term swings in sentiment that could quickly evaporate. "The ...
US Fed to look 'carefully' at Facebook virtual coin Libra
Federal Reserve chairman Jerome Powell said Tuesday the US central bank will be closely scrutinizing Facebook's newly announced cryptocurrency Libra with an eye toward potentially regulating the virtual coin. Powell became the latest official to voice concern over the global virtual currency unveiled last week by Facebook and an array of partners which aims to lower transaction costs and bring more services to people without access to the banking system. "We're looking at it very carefully," Powell said at an event sponsored by the Council on Foreign Relations. "Given the possible scale of it, I think that our expectations from a consumer protection standpoint, from a regulatory standpoint, are going to be very, very high." The Libra coin plan, backed by financial and nonprofit partners, represents an ambitious new initiative for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream. But the plan has already prompted ...
Bombardier sells regional jet division to Mitsubishi for $550 mn
Canadian manufacturer Bombardier announced Tuesday the sale of its CRJ Series regional jet program to Japan's Mitsubishi Heavy Industries (MHI) for USD 550 million, effectively exiting the commercial passenger aircraft sector. The deal with Mitsubishi, which has been seeking to break into aviation, comes after Bombardier recently sold a majority stake in its new medium-range C Series jetliners to Airbus, which has been renamed A220, and its Q Series turboprop line to a Canadian investment fund. The sale of the 75- to 100-seat CRJ line -- along with its service and support networks in Montreal, Quebec City and Toronto; Bridgeport, West Virginia; and Tucson, Arizona -- is expected to close by the end of 2020. In a statement, Bombardier said Mitsubishi will also assume liabilities totalling USD 200 million, and take over all maintenance, support, refurbishment, marketing and sales activities for the aircrafts. Mitsubishi president Seiji Izumisawa said the CRJ will compliment the ...
Adani Power to acquire GMR Chhattisgarh Energy
Adani Power Tuesday said it will acquire GMR Chhattisgarh Energy Ltd (GCEL) as the consortium of lenders has approved its resolution plan. The consortium of lenders, led by Axis Bank, to GMR Chhattisgarh Energy Ltd (GCEL), has issued a Letter of Intent dated June 24, 2019, approving Adani Power's (APL) resolution plan to acquire controlling equity stake and restructure debt in GCEL, Adani Power said in a regulatory filing. "Post the transaction, Adani Power Limited shall hold 100 per cent equity stake in GCEL. Of this, 52.38 per cent stake is to be acquired from the lenders, and the balance 47.62 per cent is to be acquired from the GMR Group," it said. GCEL owns an operational 1.370 megawatt (MW) supercritical thermal power plant in Raikheda, Raipur district, Chhattisgarh. The plant consists of 2 units of 685 MW each, commissioned in June 2015 and April 2016 respectively. "Successful acquisition of GCEL and Korba West Power Company (KWPCL) will consolidate APL's position as India's .
Sebi bans GV Films, 5 others from securities markets for GDR manipulation
Market regulator Sebi Tuesday barred GV Films Ltd for five years from the securities market for manipulating the issuance of global depository receipts (GDRs). Besides, the regulator has also barred Mahadevan Ganesh, A Venkatramani, R Gopalan, V Subramonian for two years, while P Raghuraman was banned for five years as per Sebi's order. According to the order, Raghuraman was a whole-time director in the company, while Gopalan, Ganesh and Venkatramani were non executive directors and Subramonian was president-corporate affairs of the firm at the time of the violation. Sebi had conducted an investigation in issuance of GDRs by GV Films and observed that the firm had issued 6.4 million GDRs for USD 40 million on April 27, 2007. All the 6.4 million GDRs were subscribed by only one entity, Whiteview Trading Corporation, the regulator observed. The subscription amount for GDRs was paid by Whiteview after securing a loan from bank Banco Efisa S.A. However, GV Films had pledged the GDR ...
Hong Kong Market falls on profit booking
The main event this week (Fri-Sat) is the G20 meeting in Japan and in particular the potential meeting between Presidents Donald Trump and Xi Jinping on the sidelines. The two leaders are expected to discuss the protracted trade fight between their two countries. China and the U.S. have already slapped tariffs on billions of dollars worth of each other's goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods. The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U.S. if the two countries fail to arrive at a deal.
Persistent Systems to acquire Youperience GmbH for up to 6.8 mn euros
IT firm Persistent Systems Tuesday said its German subsidiary will acquire Youperience GmbH for up to 6.8 million euros (about Rs 53.6 crore). Youperience GmbH is focused on Salesforce-related implementation services. Its revenues were estimated to be 3.5 million euros for the 12 months ended March 31. "The proposed acquisition strengthens Persistent's Salesforce practice in Europe and in the Salesforce Marketing Cloud domain," Persistent Systems said in a BSE filing. The filing added that the enterprise value payable for the acquisition of 100 per cent shares of Youperience is about 4.8 million euros. "Additionally, an amount up to 2 million euros to be payable over two years, which is contingent on performance and retention of key management employees," the filing said. The consideration would be in cash. "Persistent Systems Germany GmbH, through this acquisition of Youperience, has also acquired 30 per cent shareholding in Youperience Ltd, UK, affiliate of Youperience as a part of .
BMW to launch 25 new EVs by 2023
Advancing the auto industry's move towards electronic vehicles, luxury car maker BMW has announced that it would launch 25 new electrified models by 2023.As Cnet reports, 12 models will be full EVs. Harald Kruger, BMW's chairman of the board of management, had earlier announced the release year to be 2025. However, now the cars will be launching sooner than expected.The company will be releasing its next full EV, the iX3 SUV, in 2020. In addition to the BMW brand, Mini will also be introducing electrified versions with the 2020 Cooper SE arriving later this year.
China Market falls ahead of Trump and Xi meeting at G20
The main event this week (Fri-Sat) is the G20 meeting in Japan and in particular the potential meeting between Presidents Donald Trump and Xi Jinping on the sidelines. The two leaders are expected to discuss the protracted trade fight between their two countries. China and the U.S. have already slapped tariffs on billions of dollars worth of each other's goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods. The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U.S. if the two countries fail to arrive at a deal.
Madras HC dismisses Cognizant's plea challenging Rs 2,912 cr dividend distribution tax
The Madras High Court Tuesday dismissed a batch of petitions from IT major Cognizant challenging the recovery proceedings initiated by the income tax department for non-payment of Rs 2,912.25 crore dividend distribution tax. Justice K Kalyanasundaram granted liberty to the petitioner to raise all the issues before the Dispute Resolution Panel (DRP) within two weeks. "If objections are made within the time, the DRP shall consider the same on merits and in accordance with law," the judge added. The tax issue pertains to unpaid dues around share purchases done by Cognizant Technology Solutions India, which had bought back shares from foreign owners -- Cognizant Mauritius and the US-based parent Cognizant Technology Solutions (CTS). Cognizant Mauritius and the US-based IT firm had also challenged the recovery proceedings. The issue pertains to payment of tax at the rate of 15 per cent while remitting Rs 19,415 core to its non-resident shareholders in the US and Mauritius towards buyback ..
Nestle introduces Asian flavour inspired noodles under Maggi brand
FMCG major Nestle has introduced MAGGI Fusian, a range of Asian flavor inspired noodles, to cater to evolving consumer preferences. MAGGI Fusian will be launched in three flavours -- Bangkok Sweet Chili, Hong Kong Spicy Garlic and Singaporean Tangy Pepper, a statement said. "This unique range has been specially crafted for our loving consumers. With this range consumers will be able to experience, the thrill of tasting flavours from all over Asia with the simplicity, trust and convenience that MAGGI brings in our lives," Nestle India Director, Foods & Confectionary, Nikhil Chand said. Nestle India's instant noodles brand Maggi has attained over 60 per cent market share and almost touched the pre-crisis level in value terms.
MP govt to bring e-vehicle policy soon
The Madhya Pradesh government will soon come up with e-vehicle policy in a bid to increase facilities for electric vehicles and bring down pollution levels, Urban Administration Minister Jaivardhan Singh said Tuesday. The government would also emphasise on introducing electric buses and vehicles in public transport in future. The minister said electric vehicles would be initially operated in big cities like Indore and Bhopal. The upcoming policy would also regulate e-rickshaws and other vehicles besides developing required facilities for such vehicles, he said. Meanwhile, the Bus Operators Confederation of India (BOCI) has said 90 per cent of 19 lakh public transport buses in the country are being run on tradition fuel - diesel. "According to our estimation, 19 lakh buses, including 1.5 lakh buses in the government sector, are being run in the country, and 90 per cent of them operate on diesel engines, but the number of electric vehicles is very less," Prasanna ...
Kerala to seek extension of moratorium on farmers loans till
Kerala, which faced the worst deluge in 100 years in August last year, resulting in severe crop loss, Tuesday decided to seek extension of moratorium on farmers loans till December 31. The decision in this regard was taken at the meeting of state officials and State Level Banker's Committee (SLBC), which met here Tuesday. Kerala Chief Minister Pinarayi Vijayan , who attended the meeting, saidthe state would approach the Reserve Bank, seeking extension of the moratorium. In the SLBC meet, Vijayan urged the banks to be more considerate and make things less complicated for the farmers availing agricultural loans. "Banks must accept the reality and should avoid technicality when it comes to matters regarding the sufferings of farmers. Banks have a social responsibility to support those who are financially backward in the society," Vijayan said in a Facebook post. He said the state had borne the brunt of multiple natural calamities in the last two years. "Due to these natural
15th Finance Commission speaks of "enigma of two Karnatakas"
There is an enigma of two Karnatakas with the existence of both high per capita income and high poverty numbers in the state at the same time, the 15th Finance Commission said on Tuesday, as it stressedon the need for closer attention on the matter. Also,the debt to GDP ratio in Karnataka is rising and the state needs to be mindful of this going forward,the Commission cautioned,though it is aligned with the targets set as of now. Commission Chairman N K Singh said it was somewhat ironic that as one speaks of Karnatakaas India's engine of growth, the home of technology and startup industries and where entrepreneurialinstincts come naturally,per capita income was significantly higher than that of the nation, but poverty numberswere unacceptably high. "In a sense as what many have said there is not one Karnataka, there are two Karnatakas," he said. One was a prosperousKarnataka and alongside it one far less prosperous and which really demonstrated how intra-state ...
Kerry Taste and Beverage opens new state-of-the-artfacility
Leading nutrition company Kerry Taste and Beverage Tuesday opened its new state-of-the-art facility at Tumakuru, about 120 km from here. Inaugurating the facility, Irish Ambassador to India Brian McElduff said, "The investment serves as a welcome vote ofconfidence in India, and further supports growing businessrelations and bi-lateral trade between the two countries." The company, which serves the food, beverage and pharmaceutical industries, said the new facility spread over 40,585 sq metre was its fourth significant investment in India. "Our Tumkur facility will enable Kerry to offer a broader range of technologies, and more comprehensive scientificresearch and innovation and application expertise acrossKerry's Taste & Beverage Systems, to our customers at unrivalled speed," said Kerry's vice-president and general manager (South West Asia) Scott Scharinger.
GST superintendent booked by CBI in DA case
The CBI has booked a superintendent of GST and his wife for allegedly amassing assets disproportionate to known sources of income by 47 per cent which included a Mercedes Benz sports cars, a high-end bike and properties, officials said Tuesday. S K Swaminathan has been named along with his wife Christine for amassing assets during 15 years period from April 1, 2003 to January 8, 2018, they said. The CBI alleged that the couple was in possession of disproportionate assets to the tune of Rs 87.5 lakh -- which included properties, bank balance, a high-end Hyosung GT250RC motor bike, Mercedez Benz GLA 200 sports car, Corolla Altis -- while he earned a total salary of Rs 58.4 lakh during the period. The agency has alleged that Swaminathan had made assets worth Rs 1.18 crore during the 15 year period while his income was Rs 1.84 crore with an expenditure of Rs 1.54 crore. Hence the savings should have been Rs 30.66 lakh but they have Rs 87.52 lakh, it alleged.
World Bank to provide $31.58 mn loan for financial systems management project in Uttarakhand
The World Bank has signed an agreement to provide USD 31.58 million (about Rs 221 crore) loan for a project to improve Uttarakhand's financial systems and better utilisation of development resources in the state. A tripartite agreement was inked between the central government, the Uttarakhand government and the World Bank for Uttarakhand Public Financial Management Strengthening project, Finance Ministry said in a release on Tuesday. The loan will improve state's ability to manage its financial systems and lead to better utilisation of development resources, it said. The project will support the state government's initiative to build and modernise technical and financial management capabilities of its local bodies and state-owned enterprises. "The government of Uttarakhand has worked over the last decade to strengthen its public financial management systems," Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance said. He said the World Bank ...
CESC to raise Rs 350 cr via securities
CESC Ltd will seek shareholders' approval to raise Rs 350 crore through various modes of securities next month. The annual general meeting (AGM) of the company will be held on July 19, 2019, as per the annual general report of the company. According to the report, the company will also seek shareholders approval to get term loan of Rs 200 crore from Union Bank of India and Rs 300 crore each from State Bank of India and Bank of Baroda to part finance its capital expenditure. Under the special resolution, the company also sought shareholders' nod to avail incremental working capital facility of Rs 150 crore from Bank of Baroda and Rs 30.65 crore from State Bank of India.
15th finance panel stresses on dialogue with GST council
Finance Commission Chairman N K Singh Tuesday stressed the need for a dialogue between the commission and Goods and Services Tax (GST) council to address various concerns on the taxation regime. He said the Commission had requested the Finance Minister, who is the Chairman of the GST council, regarding this, and has received a favourable response. "One of our areas is how do we engage, how purposeful can the finance commission engage with the GST to be able to bring the concerns to the notice of that constitutional body- that what can done to improve the outcome of the GST, and what can be done to improve the quality of compliance , also fixation of rate structure," Singh said. Speaking to reporters here, he said the mechanism fordialogue between the finance commission and the GST council was an area that deserves greater attention. The chairman said he had written to the previous finance minister Arun Jaitley about the need for suitable consultative mechanism between ...
