1.Rupee falls for 7th day, closes just shy of 72 a dollar.
2 .Relaxation of additional fees and extension of last date of filing Form BEN-2
3.The Ministry of Corporate Affairs has received several representations regarding *extension of the last date for filing of e-Form BEN-2 without additional fees* on account of Companies (Significant Beneficial Owners) Rules, 2018 notified vide G.S.R. No. 561(E) dated 13.06.2018.
4.LIMIT FOR FILING SUIT IN DRT INCREASED FROM 10 LAKH TO 20 LAKH
5.100% Deduction not available u/s 80-IC If Substantial Expansion in Manufacturing was carried out after 5 Years:
6.GST Evasion: First Arrest Recorded in Karnataka
7.Red Corner Notice issued against Nirav's executive
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Attention Taxpayers! 15.09.2018 is last date for payment of your second instalment of Advance Tax. Non/short payment will attract levy of interest.
Due Date is Sept 11, 2018 for GSTR1 for Assessees having turnover exceeding 1.5 Cr. In the FY 2017-18.
Union government doubled the pecuniary limit to Rs. 20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce pendency of such cases.
SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.
MCA has issued the much awaited circular w.r.t Relaxation of additional fees and extension of last date of filing of Form BEN-2 under the provisions of the Section 90 of the Companies Act, 2013.
The rupee crossed the 72-a-dollar mark on Thursday, but retreated on intervention by the Reserve Bank of India (RBI). The currency fell to 72.07 a dollar in intra-day trade, but closed just below the 72-mark.
RBI has notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2018 which shall come into force with effect from the 1st day of September, 2018.
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Expenditure on Interest-bearing Loans acquired for making Investment in Agricultural Land not allowable as Deduction: ITAT [Read Order]
Read more at: http://www.taxscan.in/expenditure-interest-bearing-loans-acquired-making-investment-agricultural-land-deduction-itat/28061/
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CBDT Reminds Taxpayers to Pay 2nd Installment of Advance Tax by 15th Sep
Read more at: http://www.taxscan.in/cbdt-reminds-taxpayers-pay-2nd-installment-advance-tax-15th-sep/28067/
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Import of ‘Cargo Sling’ exempted from Customs Duty: CESTAT [Read Order]
Read more at: http://www.taxscan.in/import-cargo-sling-exempted-customs-duty-cestat/28053/
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Gujarat High Court dismisses PIL Challenging GST Late Fee [Read Order]
Read more at: http://www.taxscan.in/gujarat-high-court-dismisses-pil-challenging-gst-late-fee/28070/
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Restoration and Painting of Cylinders not subject to Tax as ‘Maintenance and Repair Service’: CESTAT [Read Order]
Read more at: http://www.taxscan.in/restoration-painting-cylinders-tax-maintenance-repair-service-cestat/28081/
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Capital Market Updates
1. 📜 It is mandatory for new car owners to take a 3-year insurance cover and new 2-wheeler owners to take a 5-year insurance cover September onwards. GIC Housing Finance to benefit significantly.
2. 🏍 Bajaj Auto plans to expand its 3-wheeler and quadricycle capacity following the government's decision to exempt electric vehicles (EVs) and automobiles run on alternative fuel from permit requirements. An excellent BUY.
3. 💻 I.T. services major Wipro has obtained a $1.5 billion 10-year deal from Alight Solutions. A big POSITIVE for the company.
4. 🕳 Coal India reported a 3.2% rise in output at 38.8 MMT last month. Coal prices are also on the rise on the back of higher demand. To meet the government’s financial targets, the company is likely to pay a hefty dividend this year as well. BUY.
5. 🎛 Jindal Steel & Power plans to break up its business into different entities and trim its ₹42000 debt by selling its Oman unit. This move may turn out to be a wealth creating opportunity for investors.
6. 🚗 Maruti Suzuki India reported marginally lower sales in August. A good opportunity for investors to accumulate the stock if its share price falls. BUY.
7. 🏭 Food major Britannia Industries is showing signs of a breakout on the back of higher sales and improving EBITDA. The stock may touch ₹7250.
8. 🍶 Manpasand Beverages, which was beaten down due to adverse news, seems to be recovering. Investors with a risk appetite may enter.
9. 🏭 FMCG major Marico expects a double-digit volume growth in the next 3-5 years. BUY for the long-term.
10. ⛽ GAIL, the country’s largest gas transportation and marketing company, plans to set up battery charging stations for EVs. BUY for the long-term.
11. 🚐 Mahindra & Mahindra has introduced Marazzo (a multi-utility vehicle) priced at ₹10,00,000 in an attempt to compete with Toyota’s Innova and Maruti’s Ertiga. A POSITIVE for the company.
12. 💊 Aurobindo Pharma is close to acquiring Sandoz’s US portfolio dermatology business for $1 billion. A big POSITIVE for the company.
13. 🥛 ITC plans to compete with Amul, Coca Cola and Britannia Industries with the launch of its milk-based drinks. ACCUMULATE.
14. 💰 Reports suggest that some foreign investors are keen on buying a stake in Reliance Home Finance. The stock has corrected sharply. ACCUMULATE.
15. ⚙ Unconfirmed reports about falling prices of aluminium have pulled down the share price of National Aluminium Company (NALCO). The stock will recover soon.
16. 🥌 Sagar Cements reported 24% higher consolidated cement sales at 2,47,051 tonnes in August 2018 over August 2017. A worthy BUY.
17. 💊 Sun Pharmaceutical Industries derives a major portion of its revenue from exports. The strengthening of the US dollar will augur well for the company. BUY.
18. 📑 JK Paper has lifted the lockout at one of its plants. Now with its routine operations back on track coupled with bright industry prospects, better profitability can be expected. BUY for the long-term.
19. 💸 Yes Bank is expected to post an EPS of ₹23 in FY19. The stock trades at a forward P/E of 16.52x and P/BV of 2.9x. A reasonable P/E of 20x will take its share price to ₹460. The stock trades cheap compared to RBL Bank, which trades at a forward P/E of 37.73x and P/BV of 3.86x.
20. Reports suggest that Page Industries may enter the women’s innerwear market. BUY.
21. 🔋 Amara Raja Batteries, India’s second largest traditional battery maker, plans to build a lithium-ion assembly plant in Andhra Pradesh to increase its market share. ACCUMULATE.
22. 🌡 Meghmani Organics is expected to notch an EPS of ₹11 in FY19 and ₹14 in FY20 post expansion. A reasonable P/E of 10.80x (industry P/E is 39.93x) will take its share price to ₹137.5 in the medium-term and ₹175 thereafter.
23. 📑 Based on its Q1FY19 EPS of ₹11, International Paper APPM is expected to notch an EPS of ₹50 in FY19. A reasonable P/E of 15x will take its share price to ₹750.
24. 🎚 Based on its Q1FY19 EPS of ₹104, Honeywell Automation is expected to notch an EPS of ₹390+ in FY19. The stock is poised to cross ₹25000.
25. 🏭 Patel Engineering has posted a consolidated EPS of ₹10 in FY18 on an equity capital of just ₹15.7 crore. The stock is poised to touch ₹75.
26. 🍫 Some analysts are very bullish on Nestle India, which posted 50% higher PAT in Q2CY18. The stock is poised to touch ₹12500.
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‘All’ matters under Companies Act 1956 to be transferred to NCLT: Calcutta HC
While interpreting provisions of the old and new Companies Act, a division bench of the Calcutta High Court has held that all matters that were pending before High Courts under the old law will be transferred to the NCLT.
The division bench comprising Chief Justice Jyotirmay Bhattacharya and Justice Shekhar B. Saraf has upheld the single judge bench ruling in the same matter.
The case in question is of oppression and mismanagement, which was filed under provisions of the Companies Act, 1956.
In 1988, the 1956 Act was amended to transfer cases to the Company Law Board. Cases which were pending before the High Court prior to enforcement of 1988 amendment, were however retained with the High Courts.
The Companies Act, 2013 (which repealed the 1956 law) then inserted Section 434 which expressly transferred, “all proceedings under the Companies Act, 1956, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court” to NCLT.
The appellants argued that the legislature did not intend to transfer the proceedings pending prior to 1988, which are the ones which were saved by the 1988 amendment. They argued that only proceedings which were filed before the CLB would be transferred to the NCLT.
And while Section 434 expressly transfers ‘all’ proceedings under the 1956 law to the NCLT, the appellants sought to take advantage of the language that follows in the provision, which limits those proceedings to those of compromise, arrangements and winding-up. They then asserted that the word ‘all’ in several instances has been interpreted in a restrictive manner depending on the context and subject, and also sought to apply a restrictive meaning to the term ‘includes’.
The appellants also argued that Section 68 of the Amendment Act, 1988 being a transitional provision, which stands independently, would remain as long as the matters contemplated therein are not heard and disposed of by the High Court.
With this backdrop, the division bench bucketed the dispute into the following four issues:
(a) Whether the ouster of the jurisdiction of the High Court in relation to company matters needs to be express or the same may be ousted by implication?
The Court held that the no express repealing of the jurisdiction is required and the same can be repealed by implication. It said the jurisdiction of the High Court in company matters being a special jurisdiction conferred by the 1956 Act, and not being a civil jurisdiction under the Code of Civil Procedure,1908, can always be ousted by the amendment of the enactment that conferred the said jurisdiction.
(b) Whether parties to a lis can insist on continuing their dispute in the forum the same was initiated or have to bow down to the wishes to the legislature for transfer of the said jurisdiction to another forum?
On this point, the Court ruled that a change of forum is not a choice of parties, but is the choice of the legislature. It further said the parties cannot contend that they have a vested right to continue in the forum the lis was initiated.
“Forum is a matter of procedure and change of the same does not result in change of substantive rights of parties”, the Court ruled.
(c) Whether the term “all” and “including” in Section 434(1)(c) of the 2013 Act are expansive in nature or the same is to be read in a restrictive manner?
The Court found the term ‘including’ used in Section 434 of the 2013 Act to be expansive and not restrictive in nature. Accordingly, it ruled that all matters, without any exception, pending before the District Courts and High Courts would have to be transferred to the NCLT.
(d) Whether Section 68 of the Amendment Act, 1988 continues to subsist regardless of the coming into force of Section 434(1)(c) of the 2013 Act in relation to matters that were filed in the High Court prior to coming into force of the Amendment Act, 1988?
“The moment a new enactment comes into the statutory books, dealing with the same subject matter and specifically dealing with the same issue, and the transitional provision becomes inconsistent with the new enactment, the transitional provision has to go due to repugnancy”, the Court ruled.
Accordingly, it ruled that Section 68 of the Amendment Act, 1988 would be (impliedly) repealed in view of the clear inconsistency.
