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Sunday, 14 July 2019

15 July 2019 Updates

©orporate Updates on July 15, 2019

Ø DHFL warns investors it may not survive as a going concern

Ø Tatas may have to take a call on debt-heavy TCL

Ø  'Govt to pay damages to consumers for load sheddings'

Ø Tata Steel's Q1 steel output grows 9% to 7.61 MT

Ø Ceat lines up Rs 3,500 crore capex to ramp up production capacity

Ø As IndiGo faces turbulence, regulators intensify scrutiny of governance lapses

Ø Lenders wary of using IBC for debt resolution over creditors' parity

Ø Balance sheet of India Inc weakens; net debt-equity ratio inches up in FY19

Ø After RInfra and RPower, lenders to rejig debt of 2 more Anil Ambani firms

Ø Torrent Pharmaceuticals manages to improve Unichem's FY19 profits

Ø Sterlite's closure hits Vedanta copper earnings; revenue drops by 57%

Ø Stop steel exports at lower than domestic price: Consumers’ associations

Ø IOC hires foreign flagged VLCC at day rate of $31,950 for seven years

Ø Solar energy body seeks capping tariff at ₹ 3/unit under NTPC, SECI auctions

Ø BHEL bags ₹100-cr order from NTPC to set up solar power plant

Ø Lupin aims to launch new products across geographies this fiscal

Ø Guidelines for PSU banks to pick pooled assets of NBFCs likely this week

Ø LIC new premium more than doubles in June

Ø Unicorn India Ventures launches ₹400 crore tech-focused fund

Ø Govt says Deloitte misreading law in challenging government's call for ban

Ø Nine of top-10 firms lose ₹88,609 crore in m-cap, HDFC Bank, TCS top losers

Ø E-commerce: Reliance Jio not to take on Amazon and Flipkart, readies platform to wire kirana stores

Ø Relief for power firms: Govt. asks Aptel to crack down on ‘regulatory assets’

Ø Unprepared UK facing highest risk of recession since 2007

Ø Warning shot to world economy as Singapore slumps, China exports drop

Ø Farm credit may exceed Rs 13 lakh crore in FY20: Nabard

Ø Crude oil demand growth to remain stable

Ø State Bank of India removes online fund transfer fee

Ø DPIIT to soon float draft national retail policy to seek stakeholders' views

Ø FPIs remain net buyers in July so far, infuse Rs 3,551 cr in Indian markets

Ø Govt wants ONGC to sell golf course in Ahmedabad that has oil wells
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CBI books former ED and current GST officer in Hyderabad for illegal properties:

READ MORE- https://www.gststation.in/cbi-books-former-ed-and-current-gst-officer-in-hyderabad-for-illegal-properties/
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GST: Consumer goods firms hope for fiscal stimulus:

READ MORE- https://www.gststation.in/gst-consumer-goods-firms-hope%e2%80%8afor-fiscal-stimulus/
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Sitharaman’s first Budget gives breather for delay in payments towards GST:

READ MORE- https://www.gststation.in/sitharamans-first-budget-gives-breather-for-delay-in-payments-towards-gst/

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RBI update
In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019 for convenience of reporting this year.
For more info, please follow: https://flair.rbi.org.in/fla/faces/pages/login.xhtml

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👉Income tax department has now made available Prefilled XML of ITR 1, 2, 3 and 4 for AY 2019-20 at Income Tax Portal.

👉Government seeks information from the SEBI about the origins of those Foreign Portfolio Investors (FPIs) that use the Trust Structure and the assets that they manage. It also asked for data on the tax liability of each of the structures employed by FPIs — Trusts, Companies and LLPs

👉Income Tax (IT) Disputes pending as on 31st March 2019 for the CBDT aggregated to Rs 5.71 Lakh Crore.

👉CBDT wants the Income Tax (I-T) Department to recover at least Rs 5.11 Lakh Crore in Outstanding Tax Demands in 2019-20 alone, according to its central action plan of fiscal 2020. The Total Outstanding Tax Demand Arrears of the I-T department stands at Rs 12.77 Lakh Crore as on April up over 14% from a year ago.

👉UCO Bank hopes to reduce its Net NPA or bad debts to under 6% in the current fiscal, enabling it to get out of the RBI’s curbs on lending through PCA. It aims to returns to profits by lending to home-buyers and small businesses.

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CBDT has issued Clarification regarding taxability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment  Fund.

Govt has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 lakh crore, a task that the CBDT chief said is difficult but achievable. He also said that the government can only think of further "lowering" corporate tax rates once the exemptions and deductions in this sector are phased out.

Govt has ruled out a rollback of the ‘super-rich’ tax on foreign portfolio investors (FPIs) organised as trusts or AOP. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge.The move will hit 40% of the FPIs.

About 2 lakh individuals/business entities withdrew amounts in excess of Rs 1 crore each from their bank accounts in FY18, aggregating Rs 11.31 lakh crore. Such large-scale cash withdrawals, most without any legitimate economic/ commercial rationale, are what prompted the government to impose a 2% TDS on such withdrawals.

Supreme Court has held that the inter-state sales between two successor states cannot be treated as intra-sales for the purpose of sales tax exemption granted to industries prior to bifurcation. Madhya Pradesh v/S Lfarge Dealers Association held that though the creation of a new state is an unforeseen event and could give rise to unusual situations, this cannot be a ground and reason to treat inter-state sales between the two successor states as intra-state sales.

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👉🏻Delhi Govt cancels GST registration of 1,282 traders for fraud
(In addition, “show cause notices for cancellation have been issued to 3,221 dealers, of which proceedings are still underway)
👇🏻 👇🏻 👇🏻
http://bit.ly/2G9aXvd

👉🏻Income Tax disputes of Rs 5.71 lakh crore pending with CBDT
(Income Tax disputes pending as on 31st March 2019 for the CBDT aggregated to Rs 5.71 lakh crore)
👇🏻 👇🏻 👇🏻
http://bit.ly/2Y3qRRK

👉🏻PAN not linked to Aadhaar card will become invalid from September
(Govt will invalidate all PAN cards that are not linked to Aadhaar by September 1)
👇🏻 👇🏻 👇🏻
http://bit.ly/2xKGgrw

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Govind Agrawal, tax consultant who was facing probe regarding GST evasion racket, commits suicide:

READ MORE- https://www.gststation.in/govind-agrawal-tax-consultant-who-was-facing-probe-regarding-gst-evasion-racket-commits-suicide/
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🏦 TOWER TALK🏦
July 15 - 21, 2019

✅ REC’s exit from Nifty CPSE triggered a sharp fall in its share price. However, its working remains good. Its current beaten down level merits a buy.

✅ Glenmark Pharmaceuticals has obtained USFDA approval for its Ranolazine tablets for the treatment of chronic angina. A positive for the company.

✅ The Budget proposals to boost electric vehicles (EVs) and affordable housing will, in turn, boost the aluminium sector. Buy National Aluminium Co.

✅ Although Tata Consultancy Services has missed the Street estimates, the management is confident of a double-digit growth this year. Continue to hold.

✅ The management of Godrej Propertiesbelieves that the Budget proposals for the realty sector are beneficial to them. Accumulate.

✅ Ashok Leyland is set to launch EV light commercial vehicles soon. A positive for the company.

✅ Power Finance Corporation is likely to declare a good dividend at its upcoming AGM. Accumulate.

✅ Mahindra & Mahindra Financial Services has informed the media about its financial soundness. A safe bet at a time when most NBFCs are facing liquidity issues. Accumulate.

✅ Gulf Oil Lubricants (India) has become investor-favourite given its rising volumes and increasing market share. Accumulate.

✅ Production cuts have spoilt the sentiment in the Maruti Suzuki (India) counter. A good time to accumulate in small lots.

✅ EID-Parry (India) plans to expand its ethanol facilities. The rising demand for ethanol coupled with favourable government initiatives will boost the company’s profitability. Buy.

✅ Gujarat Gas is reportedly faring well this year and is ramping up in new areas. At FY20E EPS of Rs.17, it appears to be a safe investment bet for the next one year.

❎ The entire ADAG group is in a big financial mess. Stay away from Reliance Industrial Infrastructure.

✅ Himachal Futuristic Communications has received a purchase order worth Rs.186.9 crore from BSNL. Buy selectively.

❎ The auditor of Manpasand Beverages has resigned. It may be prudent to stay away from this counter for some time.

✅ Aquaculture company, Waterbase, is available at rock bottom levels despite an improved YoY performance and a higher dividend pay-out. Accumulate.

✅ NTPC has received a pan India licence for inter-state trading of power. The stock hovers around its share bookvalue. This high dividend yield stock deserves a place in every portfolio.

✅ Housing Development Finance Corp. plans to raise Rs.3000 crore via 7.99% coupon bonds to meet its long-term capital needs. There is ample room for its share price to rise.

✅ At a time when auto stocks are tumbling, Mahindra & Mahindra stands strong. This may be the best time to accumulate this auto giant.

✅ Kridhan Infra, which fell sharply over the last few months, has started moving up. It seems all the bad news surrounding the company has been factored in. Investors with an appetite for risk may accumulate selectively.