27th June 2K19
Economic Times
Ø RBI issues norms for interest rate derivatives
Ø Data related to payments to be stored only in India: RBI
Ø HSBC issues notice to IL&FS arm seeking its dues
Ø US-China trade war will shave off global output: Fitch
Ø DHFL to soon complete full stake sale in 2 subsidiaries
Ø UCO Bank targets Rs 8,000 crore recovery in FY20
Ø Proposals to revive BSNL, MTNL being prepared: Prasad
Business Standard
Ø American investments worth trillions waiting for India, says Pompeo
Ø India won't compromise national interest in trade talks with US: Goyal
Ø Govt can raise Rs 95,000 cr from infra bonds to boost growth: BofA
Ø ED seizes Rs 9,778-crore assets of Sterling Biotech, promoters in PMLA case
Ø Valuation gains from non-cigarette businesses likely for ITC's investors
Business Line
Ø NTPC-PGCIL joint venture to focus on improving efficiency of distribution utilities
Ø Electrosteel to invest ₹5,000 cr to double production capacity
Ø Adani Power to acquire GMR Chhattisgarh Energy
Ø 'Reliance Infra to deliver Rs 7,000-cr Versova-Bandra Sea Link project in 60 months'
Ø GST audit for small assessees to be desk-based
Mint
Ø PPF and other small savings schemes set for interest rate cut
Ø SC stays payment of ₹380 crore by IL&FS subsidiary
Ø CBDT expands areas to be covered by committee writing the new Direct Tax Code
Ø JM Financial, Suraksha ARC acquire ₹2,000 crore Unitech loans
Ø Icra cuts long-term debt rating of Piramal Capital, Edelweiss firms by a notch
Financial Express
Ø FDI in telecom sector down 43 per cent to USD 2.6 billion in 2018-19, says Ravi Shankar Prasad
Ø Government, RBI closely monitoring rupee exchange rate, says Nirmala Sitharaman
Ø US aims to restart China trade talks, will not accept conditions on tariff use
Ø Oil ministry seeks Rs 33,000 crore more for subsidy payout
Deccan Chronicle
Ø Rupee settles 21 paise higher at 69.15 to US dollar
Ø No shortage of iron ore in country: Mines Minister
Ø Britannia Industries denies speculation over resignation of its MD Varun Berry
Ø Inflation pinches much less for expats than average Indian
Ø Rising exposure of MFI loans per lender worries industry
Capital market -
Mahindra & Mahindra has acquired 11.25% stake in Swiss agri-tech company, Gamaya SA, for $4.3 million in line with its strategy to gain next generation agriculture and digital farming. Buy for the long term.
✅ Hexaware Technologies has bought USA-based Mobiquity in a $182 million cash deal. Buy selectively.
✅ Housing Development Finance Corporation has sold 4.2% stake in Gruh Finance at Rs.290/share in order to comply with the RBI guidelines. This transaction will strengthen its financials. Accumulate.
❎ Dwindling cash flows at Sintex Industries makes a case for selling its group company Sintex Plastics as the promoters may have to sell stake in order to return to track. Stay away from both the counters.
✅ Astrazeneca Pharma has discovered a novel drug to treat some types of cancer as an alternative to the complicated chemotherapy treatment. Moreover, its Q4 PAT was 3x higher at Rs.9.8 crore v/s Rs.3.22 crore in Q4FY18. A big
achievement! Buy.
✅ Yes Bank plans to raise $1.2 billion (Rs.8388 crore) to augment its capital through a mix of public and private stake sale. A good contrarian buy.
❎ JP Morgan expects Reliance Industries’ earnings to fall around 15% this year. Sell now, buy later.
✅ Jubilant Life Sciences seems under-priced considering its overall FY19 performance and expected ramp-up in the speciality chemicals business. Buy.
✅ The EPFO wants to pre-redeem 50% of its total investment in DHFL bonds. Although this may add to the current woes of the company, most of the bad news seems to have been factored in. A good contrarian buy for investors with a risk appetite.
✅ Wockhardt is looking at options to raise funds to pare its debt. It plans to sell a minority stake in the domestic formulations business in the respiratory and gastro-intestinal segments. Its future looks bright. Accumulate.
✅ Trent has planned a preferential allotment to the tune of Rs.1550 crore to its promoters (Tata Sons), which is indicative of some good news. A big buy!
✅ Bharat Forge plans to enter the electric vehicles (EV) segment. It has initiated investments in local start-ups and is in negotiation with global leaders to manufacture auto components. Buy for the long term.
✅ NMDC continues to perform well on the back of tightening metal prices. This low cost producer of iron ore deserves a place in every portfolio.
✅ Aurobindo Pharma has lined up $200 million worth R&D in the current fiscal year. Its future looks bright. Accumulate for the long term.
✅ Iron ore imports are on the rise as there is a shortage in the local market. To meet the domestic requirement, Coal India targets 1 billion tonne coal production this year. A good time to accumulate.
✅ Steel Authority of India eyes a turnover of Rs.79000 crore this fiscal on the back of rising steel demand. Its current beaten down level merits a buy.
✅ Corporation Bank plans to raise Rs.5000 crore by issuing shares and debt instruments to address its liquidity issues. A rights issue is also likely. Buy.
✅ Bharat Heavy Electricals has obtained orders worth over Rs.800 crore in the solar energy segment. A good long-term investment bet.
✅ Dilip Buildcon is in talks to sell some of its highway projects for over Rs.2500 crore in an attempt to pare its debts. A value pick.
✅ Heavy investment buying seen in Harish Textile Engineers, which is expected to notch an EPS of Rs.11+ for FY20. Buy for the long term.
✅ Pokarna, which is on an expansion spree, is expected to notch a consolidated EPS of Rs.30-32 for FY20. The stock is likely to cross Rs.200 again.
✅ Analysts expect Shemaroo Entertainment to cross Rs.420 on FY20E EPS of Rs.35.
✅ Kovai Medical Center & Hospital is likely to notch an EPS of Rs.55 for FY20. A reasonable P/E of 17.5x (industry P/E: 42x) will take its share price to Rs.960+ in the medium term.
✅ Indiabulls Housing Finance has clarified that its GNPA stands at just 0.88% and there is no liquidity crisis. The stock is likely to cross Rs.650 in the short term.
✅ Mawana Sugars, which posted an EPS of Rs.11 for FY19, is on a debt reduction drive. It may notch an EPS of Rs.14+ for FY20. Buy for about 20% returns.
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Reopening of assessment merely on Investigation Wing report without independent application of mind was invalid. Case Name : M/s. Key Components (P) Ltd. Vs ITO (ITAT Delhi)
GST Council extended the tenure of the anti-profiteering authority by two years to November 2021, in what went against its past assertions that the body will have only a transient existence and a non-intrusive character. The council also decided that in cases of profiteering, firms will have to pay a penalty of 10% of the amount cornered by not passing on benefits of GST rate cuts to consumers.
Monetary Policy Committee meeting minutes reveal that the change in RBI's policy stance will deliver more rate cuts in the future. Governor Shaktikanta Das had limited himself to say that the shift in stance of the policy to "accommodative" must be seen as there being no rate hikes in future, speaking after the policy review on June 6.
SEBI has tightened the rules for usage of client funds by brokerages. As per the new rules, brokers have been asked to transfer the securities to their client accounts within one day of receiving payment. In case if the client defaults on the payment, brokers have been asked to hold the securities up to five days post which they can liquidate the securities in the market and recover dues
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GST Gyan-Soon file CMP-02 for availing Composition Scheme in 2019-20 till 31.07.2019 & ITC-04 (for job work) for period July 2017 to June 2019 by 31.08.2019.
MCA Update- 29.06.2019 (Saturday) is the last date to file one time return in form DPT-3. MCA Notification dated 30th April, 2019.
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CLARIFICATION ON CONDONATION OF DELAY FOR E-FORM INC-20A:
1. Form INC-20A is required to be filed within 180 days of the date of incorporation of the Company;
2. If you try to file the form after the above mentioned period then it gives the error "Please file form INC-28 for condonation of delay and then proceed to file form INC-20A"
3. Form INC-28 is an eform to be filed for filing of "Notice of Order of the Court or any other competent authority". So the process of condonation can not be completed with the said eform;
4. As per Section 460 of the Companies Act the applications which could not be filed within the time specified therein than CG may for the reasons record in writing can condone the delay;
5. An application under the said Section shall be filed in E-form CG-1; but for the application of condonation of delay for delay in filing the form INC-20A the form CG-1 is giving the error "Form Filing is not allowed since Declaration for Commencement of Business is not filed in form INC-20A. Please file form INC-28 for condonation of delay and proceed to file form INC-20A";
6. As per the current scenario there is no procedure or process under the Companies Act, 2013 for the said condonation;
7. As per our opinion, currently there is no solution except waiting for MCA clarification or a new revised form being deployed which shall allow filing of the said form with additional fee, because the condonation of the said form will impose another time period of a couple of months which could be harmful for the new startups as they would not be able to conduct the business and it would not be a good example of ease of doing business.
8. As per the resolution of a ticket and discussion the said resolution or clarification might be received within next 10-15 working days.
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GST Council to consider reducing tax on electric vehicles:
READ MORE- https://www.gststation.in/gst-council-to-consider-reducing-tax-on-electric-vehicles/
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CBDT has issued Circular in which it has provided important clarification regarding the non-allowability of set-off of losses against the deemed income under Section 115BBE of the Income-tax Act, 1961 prior to assessment-year 2017-18.
Taxmen could carry out ‘mock purchases’, visit premises and check invoices issued by top 20 goods and services suppliers as part of anti-profiteering investigations in their respective areas under the new tightened framework under Goods and Services Tax.
SEBI is likely to come out with guidelines on differential voting rights (DVR), new norms for buyback and pledging of shares by promoters. Apart from superior DVRs and buyback of shares by high debt companies, high financing deals involving loan against shares to promoters by mutual funds and NBFCs.
Non-banking financial companies (NBFC) want the Reserve Bank of India (RBI) to relax the timeline to implement the minimum LCR norms by a year, and ease the glide path to implement LCR to 25% from the RBI’s proposed limit of 60%.
Nasscom has proposed that special provisions for virtual testing of fintech products be created in the capital market regulator’s proposed regulatory sandbox, as some startups may not have the scope to test their products offline.
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Centre proposes to integrate FASTag bank mechanism with E-way bill to check GST evasion:
READ MORE- https://www.gststation.in/centre-proposes-to-integrate-fastag-bank-mechanism-with-e-way-bill-to-check-gst-evasion/
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Blocking of E-Way Bill for GST Non-filers to be implemented from August: CBIC [Read Notification]
Read more at: https://www.taxscan.in/blocking-e-way-bill-gst-non-filers-implemented-august-cbic/36592/
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(DPT-3:Auditor's Certificate) Clarification on Auditor’s Certificate on Return of Deposits pursuant to Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014
This has reference to Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014 and further amendments.
In this regard, the Ministry of Corporate Affairs vide its letter no. File No: P-01/08/2013- CL-V Vol. VI dated June 24, 2019 has clarified on the matter as under:
The Auditor’s Certificate is mandatory only in case of return of deposits.
For filing particulars of transactions not considered as deposits information contained therein as on 31st March of that year need not be from the duly audited Financial Statement.
Only in case of Return of Deposit information contained therein as on 31st March of that year should be from duly audited financial statement of the company.
Also in order to provide guidance to members, the Auditing and Assurance Standards Board of ICAI has issued Illustrative Auditor’s Certificate on Return of Deposits, which is available on the below cited link:
Illustrative Auditor’s Certificate on Return of Deposits as at [state the year end] pursuant to Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014, as amended : https://resource.cdn.icai.org/55581aasb250619b.pdf
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Importers do not need state-wise registration under GST regime:
READ MORE- https://www.gststation.in/importers-do-not-need-state-wise-registration-under-gst-regime/
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GST evasion: Authorities arrest two foreign nationals in Chennai:
READ MORE- https://www.gststation.in/gst-evasion-authorities-arrest-two-foreign-nationals-in-chennai/
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👉ITR Alert: Income Tax Dept modifies Return Preparation Software and Schema and the same is available for filing now.
👉Concerned over the "lackadaisical attitude" of I-T Department officers in dealing with Taxpayers' Grievances, the CBDT chief has shot off a stern letter asking the officials to ensure Timely Redressal of thousands of such pending cases. CBDT Chairman P C Mody, in a recent letter to Regional Heads of the Department across the country, has told the officials to take urgent steps and reduce problems and grievances of the taxpayers.
👉The Centre will soon bring services provided by the office of a company in one state to an office in another state under the purview of the GST. The Finance Ministry has put out a draft circular clarifying the taxability of services provided by head office, located in one State, to the branch office located in another. Technically, it is called cross charges and the issue is how tax can be calculated in such a case.
👉RBI launches Complaint Management System(CMS) to lodge Complaints against Entities regulated by Reserve Bank like Banks, NBDCs, Payment Banks etc.. It is a software application to facilitate RBI’s Grievance Redressal Processes.
👉SEBI board plans to tighten rules for Pledged Shares by Promoters. It will address issues around shares encumbered by promoters and the mutual fund industry’s exposure to these structures.
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UDIN (Unique document Identification Number) for CMA
Read more https://www.expertmile.com/articles/2949
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GST: Budget may set stage for new Income Tax Act:
READ MORE- https://www.gststation.in/gst-budget-may-set-stage-for-new-income-tax-act/
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👉🏻MCA asked NFRA to review Auditing and Assurance Standards for Auditors
(MCA has asked NFRA to review Auditing and Assurance Standards for auditors, people familiar with the development said)
👇🏻 👇🏻 👇🏻
http://bit.ly/2IJyXqh
👉🏻Sharing of information with Public Sector Banks in case of loan defaulters
(CBDT is of the view that sharing of information with Public Sector Banks in respect of assets held by defaulters of loans, so as to enable recovery of loans from such defaulters)
👇🏻 👇🏻 👇🏻
http://bit.ly/2WYpEqo
👉🏻Govt to launch new KYC norms to weed out fraud CA, CS and CMAs
(The development follows several complaints that the ministry has been receiving with regard to the functions of chartered accountants, cost accountants and company secretaries being fraudulently carried out by unqualified people)
👇🏻 👇🏻 👇🏻
http://bit.ly/31T5PED
👉🏻CBIC reveals GST Audit Plan / Strategy for the year 2019-20
( Directorate General in association with DGARM has developed a Risk Assessment programme, wherein list of taxpayers with risk scores will be generated and made available to each Audit Commissionerate through DDM Portal)
👇🏻 👇🏻 👇🏻
http://bit.ly/2RBecjB
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Lowering GST on automobiles would help the economy: Anand Mahindra:
READ MORE- https://www.gststation.in/lowering-gst-on-automobiles-would-help-the-economy-anand-mahindra/