Corporate Snippets on Dec 2
Ø New SEBI framework to boost depository receipts
Ø FPIs net buyers for 3rd month; invest Rs 23K cr in Nov
Ø RCEP: Japan says efforts on to address India's concerns
Ø 12 companies want to shift base from China: FinMin
Ø Telcos to gain Rs 36,000 cr/month from rate hike: Cong
Ø Nissan, Renault, Mitsubishi Motors form a new venture
Ø India considers investing $1.39 trn in infrastructure to spur economy
Ø Sep quarter Debt MFs see Rs 5000-crore outflow over rating downgrades
Ø Airtel, Voda Idea and Jio to hike mobile, data tariffs by up to 40%
Ø Maruti Suzuki India sales down 1.9% in November at 150,630 units
Ø DBT increased interest cost of fertiliser firms: FAI
Ø SAIL likely to start manufacturing of speciality rails in 2 years: Official
Ø LG Electronics India posts ₹1,534-crore profit in FY19
Ø Mahindra & Mahindra total sales down 9 per cent in Nov
Ø WTO: 163 countries agree to make changes in rules governing trade dispute resolution
Ø GST collection recovers to ₹1.03 trillion in November
Ø Tata Motors’ November wholesales drop 25%
Ø 'India is about competencies, biz prospects; discovering new opportunities'
Ø SBI Mutual Fund writes down its entire exposure to Reliance Home Finance
Ø Funding gap slows down startups aiming for global robotics club
Ø LIC earns over Rs 14,000 crore profit from stock markets in current financial year
Ø Axis Bank more than doubles loan provisions for troubled sectors
Ø Jio boxed into corner; CII, FICCI join cause to seek relief for telcos
Ø Deadline for filing returns with NFRA extended
Ø Investors seek proactive steps to guard against broker default
Ø Indian car buyers becoming less price conscious: JD Power
Ø Estimates of 2020 sugar production, exports vary
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SEBI:
MANDATES ALL LISTED ENTITIES TO DISCLOSE LOAN DEFAULTS W.E.F. JANUARY 1
SEBI mandates all listed entities to disclose to the stock exchanges, default in payment of interest/installment obligations on loans including revolving facilities like cash credit, from banks/financial institutions and unlisted debt securities, w.e.f. January 1, 2020; Highlights that this move aims at addressing the critical gap between the availability of information to investors regarding loans obtained/defaulted on by listed entities; Defining the term ‘default’ as non-payment of interest or principal amount in full on the date when the debt has become due and payable, clarifies that for revolving facilities, an entity would be considered to be in ‘default’ if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power, whichever is lower, for more than 30 days; States that listed entities shall disclose any default on loans including revolving facilities from banks, which continues beyond 30 days, within 24 hours from the 30th day, and adds that in case of unlisted debt securities, disclosure shall be made within 24 hours from occurrence of default; SEBI also lays down the disclosure formats for - (i) loans including revolving facilities, and (ii) unlisted debt securities (like NCDs and NCRPS) and for each instance of default and specifies the format for quarterly disclosures to be made within 7 days from end of each quarter, in specified cases: SEBI
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Update on disciplinary action as per the Chartered Accountants Act 1949
In all the below matters action can be taken by ICAI if reported or even suo Moto by Disciplinary Committee:
List of violations (The list is illustrative only):
1. Director in a company without informing to the Institute, while holding Certificate of Practice.
2. Director in a company in which the member has "substantial interest" while holding Certificate of Practice and not obtained permission.
3. Acceptance of assignments of audit without communicating with previous auditor.
4. Issued different certificates for different purposes.
5. Issued / signed financial statements for the same period with different numbers.
6. Doing business in the name of spouse or children.
7. Being a sleeping partner in a business enterprise without obtaining permission from ICAI.
8. Has been in police custody for more than a night and not informed to ICAI about the fact.
9. Allowed a person /some persons to use the name, not being a practicing members.
10. Shared fee with non practicing members.
11. Accepted profits from a person who is / was not a member of ICAI.
12. Issued advertisements and solicited professional work.
13. Not informed the change in employment / address with in stipulated time to ICAI.
14. Charged fee in percentage or as a share of profit or on contingency result.
15. Holding CoP and conducting coaching classes either in individual capacity or as director and holding more than 2% of capital along with relatives(relative defined as per IT Act of 1961).
16. Carried out Tax audits being a part time practitioner.
17. Being a office bearer of ICAI, submitted wrong claim / statement of claim.
18. Carried out audit / assignment negligently.
19. Used brand name for procuring professional work.
20. Holding CoP, bounced cheques issued towards loans.
21. Utilised clients money for personal / other purposes.
22. Conducted internal audit and external audit of an enterprise for the same periods.
23. Accepted to carry out internal and external audits.
24. Violated any of the Council guidelines issued in 2008 and CA Regulations.
25. Not submitted information sought by ICAI on different occasions.
26. Not informed ICAI w.r.t professional details, change in status, address etc etc.
27. Not paid dues to Government authorities which are not disputed.
28. Working abroad but being a partner in Indian firm.
29. Holding CoP and working in an enterprise, not being a CA firm, as a consultant
Defacto employee but dejure a member in practice.
Do evaluate yourself whether you have done any violation of above nature. Than beware
Above is shared with purpose to educate ourselves. Any one has any other points to add can send it. Just for caution. Today environment we don't know what will happen and we should not become scapegoat to system, so better to educate and be cautious.
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👉BMW India gets clean chit from NCLAT over dominance abuse charge.
👉NCLAT held that the time spent for SARFAESI Proceedings can be excluded for computing limitation under IBC.
👉Ambit of the Insolvency and Bankruptcy Code expanded to include personal guarantors.
👉Personal insolvency framework will be the "beginning of a new learning" and the next big thing in insolvency reforms, IBBI chief M S Sahoo has said.
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Income Tax Section 271B Penalty Not Leviable for Undisclosed Turnover Of the Company. Case Name : Vinay Agrawal Vs ITO (ITAT- Indore)
Finance Commission Chairman NK Singh said the Goods and Services Tax is an iconic taxation reform that will improve compliance. “GST was a far-reaching iconic reform related to sharing of resources between the Central and State governments. It is indeed a radical tax reform,” Singh said at the India Economic Forum Skoch event here.
Delhi Court convicts a Director for holding Directorship of More than 20 Companies. Under the Rule 16 of The Companies (Appointment and Qualification of Directors) Rules 2014, the accused has the responsibility being Director to forward to the Registrar copy of resignation along with the applicable fees in Form DIR-11 within 30 days of such resignation. ROC Vs Sh. Roop Kishore Madan (Tis Hazari Court, Delhi)
ICAI last date for payment of Membership /COP fee for the year 2019-20 up to 31st December 2019. It has been further decided to waive off condonation fee on delay of filing of application forms related to Members, Firms and Students, if respective transaction date in application forms falls between 1st April 2019 to 31st December 2019.
ICAI Application Form for the Information Systems Audit (ISA) Assessment Test - December, 2019 - (25-11-2019)
Online Application Form
Hard Copy Application Form
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◆The US has formally requested the extradition of British tech billionaire Michael Lynch to face charges for 17 counts of securities fraud, wire fraud and conspiracy. Lynch had sold his software startup Autonomy to HP for $11.1 billion in 2011. HP is currently suing Lynch and former Autonomy CFO for allegedly inflating the value of the firm before selling it.
◆The domestic sales of Tata Motors in the month of November declined by 25% year-on-year to 38,057 units. The automaker had domestically sold 50,470 vehicles in the same month last year. It witnessed negative year-on-year growth in sales across all categories, including the passenger vehicles sales, which fell by 39% during the month to 10,400 units.
◆The number of transactions made through the Unified Payments Interface (UPI) crossed the 1.22 billion mark in November. However, the value of such transactions during the month witnessed a decline of 1.1% to 1,89,224 crore compared to the previous month. In October, UPI transactions had for the first time crossed the 1 billion mark, with 1.15 billion transactions carried out.
◆Union Oil Minister Dharmendra Pradhan on Sunday said that the current economic slowdown is "temporary" and a result of the ongoing US-China trade war. The fall in the GDP growth is "cyclical in nature," he added. His statement comes after official data on Friday showed that India's GDP growth fell to a 6.5-year low of 4.5% in the July-September quarter.
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🍒 RBI imposes INR 1.50-cr penalty on Corporation Bank : The Reserve Bank of India (RBI) has imposed a monetary penalty of ?1.50 crore on Corporation Bank for non-compliance with certain provisions of directions issued by it on prudential norms relating to income recognition, asset classification and provisioning pertaining to advances - divergence in NPA (non-performing asset) accounts and advances, among others. The central bank also referred to non-compliance by the public sector bank with certain provisions of directions issued by it relating to prudential norms for classification, valuation and operation of investment portfolio by banks; framework to revitalise the distressed assets in the economy - rectification and restructuring; end use of funds - monitoring, discounting/rediscounting of bills by banks; and frauds classification and reporting by commercial banks and select FIs. The RBI, in a statement, said statutory inspection of the Bank with reference to its financial position as on March 31, 2017 and the Risk Assessment Report (RAR) revealed non-compliance with the above-mentioned directions issued by it. - Business line
🍒 Chanda Kochhar moves High Court against ICICI Bank over termination : Former ICICI Bank chief executive, Chanda Kochhar, has moved the Bombay High Court against her ex-employer for terminating her when the bank had accepted her request for an early retirement. Kochhar, one of India’s most prominent woman CEOs, said that Sandeep Bakshi was named her successor only after ICICI Bank had accepted her request for an early retirement.She pointed out that her retirement request was accepted by the bank in October 2018 and in February 2019, the bank issued her a termination letter. Kochhar, in her petition, has challenged the ‘purported termination’ and denial of the agreed remuneration, said two people familiar with the development. ICICI Bank didn’t respond to ET’s mailed queries.Kochhar has termed her termination “illegal, untenable, and unsustainable in law”, and has sought the court's intervention.The division bench of Justice Ranjit More and Justice MS Karnik has posted the matter for hearing on December 2.“She (Kochhar) has filed a writ petition against the bank for terminating her service without prior approval from the Reserve Bank of India (RBI) in breach of a statutory obligation,” said one of the people cited above. “The bank took this step after having accepted her request for early retirement with effect from October 4, 2018, by the board of the bank.” - Business Standard
🍒 Yes Bank Board to raise $2 billion through preferential allotment of shares : Private sector Yes Bank plans to raise about $2 billion dollar through preferential allotment of shares. “The Board of Directors … has taken note that the following investors have individually expressed their agreement/ willingness to subscribe to equity shares of the bank for an aggregate amount of $2 billion which shall be undertaken on a preferential allotment basis,” it said in a late night regulatory filing on Friday. Canadian billionaire Erwin Singh Braich or SPGP Holdings is interested in buying $1.2 billion. “Discussions with investor ongoing and expected to be concluded shortly. In the meantime the Binding Term Sheet extended till December 31,” Yes Bank said. - Business Line
🍒 Yes Bank invoked 6.5 mn shares of Reliance Infra between November 25-28 : Private sector lender Yes Bank has invoked 65 lakh pledged shares of Reliance Infrastructure's promoter between November 25 to 28, the company has said in a BSE filing. These shares, representing 2.57 per cent of the share capital of Reliance Infra, were held by one of the company's promoters Reliance Project Ventures and Management Ltd.With this, the holding of Reliance Project Ventures and Management Ltd in Reliance Infra has come down from 30.05 per cent to 27.58 per cent, as per the filing. Other promoters, including Anil Ambani, hold 6.98 per cent in RInfra. - Business Standard
🍒 Kerala govt set to get its own bank as HC allows merger of co-op lenders : The Kerala government's long pending dream of setting up its own bank, by merging the district co-operative banks, is set to become a reality with the High Court dismissing a batch of petitions filed against it. Minister for Cooperation Kadakampally Surendran said the setting up of the bank opens up a huge potential for the development of the state."I believe this indeed is a revolutionary step and will change the face of banking sector in Kerala.Kerala Bank - as the name suggests, it is Kerala's own Bank," Surendran tweeted.The court granted permission to the Kerala bank after evaluating that its intervention in the merger procedures was not needed.According to government sources, 13 district co- operative banks (DCBs) would be merged with the Kerala State Co-operative Bank for forming the proposed Kerala Bank. - Business Standard
🍒 RBL Bank to raise Rs 826 cr via preferential allotment to five investors : Private sector lender RBL Bank is raising Rs 825.79 crore in equity capital from five investors by issuing shares through preferential allotment. The investors are Bajaj Finance, East Bridge Capital Master Fund I, FEG Mauritius FPI, Ward Ferry Management-controlled hedge fund WF Asian Reconnaissance Fund, and Asia-focused stock hedge fund lshana Capital. The bank’s board has agreed to allot 24.24 million shares at Rs 340.7 a piece on a private-placement basis in accordance with the provisions of the Companies Act, 2013, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. On July 9, RBL Bank told shareholders at its annual general meeting that it would raise equity capital not exceeding Rs 3,500 crore. As on September 30, the bank’s capital adequacy ratio had slipped from 13.7 per cent to 12.3 per cent in the same period a year ago. - Business Standard
🍒 Ujjivan SFB raises Rs 304 crore from anchor investors ahead of IPO : Private sector lender Ujjivan Small Finance Bank (USFB) has mopped up Rs 303.75 crore from anchor investors ahead of its initial public offering (IPO), which starts on December 2. The banks want to raise Rs 750 crore to bolster its Tier-I capital. It has fixed a band of Rs 36-37 per share for the IPO.The allocation of 82.1 million shares at Rs 37 apiece to 18 anchor investors has been finalised, the bank said in a statement on Saturday.The Government of Singapore, the Monetary Authority of Singapore, CX Partners Fund, Aberdeen, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Sundaram Mutual Fund, Goldman Sachs India, and ICICI Prudential participated in the bidding.The bank caters to the unbanked urban poor and young middle class customers.The portion of the issue, aggregating up to Rs 75 crore, has been made available for the eligible Ujjivan Financial Services (UFSL) shareholders, on a proportionate basis. The shareholders of Ujjivan Financial Services will get shares at a discount of Rs 2 per share to the final issue price.UFSL, the promoter of Ujjivan Small Finance Bank, had commenced operations as a non-banking financial company in 2005. - Business Standard
🍒 MobiKwik, Aditya Birla Health Insurance to offer affordable Cancer Protect Cover : Aditya Birla Health Insurance Co. Limited (ABHICL), has entered into a strategic alliance with MobiKwik, a fintech platform, to offer simple sachet health insurance products. An innovative Cancer Protect Cover is the first product launched under this partnership between MobiKwik and ABHICL.ABHICL and MobiKwik are looking to expand their markets, creating affordable insurance solutions for mobile-first middle-class Indian consumers who have previously never had access to insurance.This offers the most comprehensive protection from diagnosis of all major stages of cancer. The policy’s protection cover allows guaranteed cash value, guaranteed savings benefits to ensure adequate protection as well as value-added services to promote preventive care. - Business Standard
🍒 Dharamshi-Jhunjunwala Consortium: NCLT okays Ricoh revival plan : A dedicated bankruptcy court has accepted the resolution plan submitted by a consortium led by investor Kalpraj Dharamshi and Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala, for the revival of Ricoh India, the largest player in printing and document solutions. The local subsidiary of the Japanese firm had filed voluntary insolvency last year. It had drawn bids from Kotak Investment Advisors Ltd, Bengaluru-based WeP Solutions and Karvy Data Management Systems.Late Thursday, the Mumbai bench of the National Company Law Tribunal (NCLT) uploaded its order where the tribunal had approved the resolution plan submitted by the consortium led by Dharamshi and Jhunjhunwala. The company was admitted for insolvency resolution in January 2018.“The resolution plan is binding on the corporate debtor (Ricoh India) and other stakeholders so that revival of the company shall come into force with immediate effect and the ‘moratorium’ imposed…shall cease to have any effect henceforth,” said a bench of MK Shrawat and Chandra Bhan Singh, passing the order. - Business Standard
🍒 HDFC Bank’s share in outstanding credit cards comes down to 25% : HDFC Bank’s share in the number of outstanding credit cards dropped to 25% at the end of September 2019 from 30% in March 2016, as rivals SBI Card and ICICI Bank increased their share over the same period. A report compiled by Citi Research from Reserve Bank of India (RBI) data shows that the share of the SBI group in the number of credit cards stood at 18% at the end of Q2FY20, up from 15% in March 2016, while that of ICICI Bank was steady at 15%. ICICI Bank’s share had dipped to 13% in March 2018 from 15% in March 2016. It recouped share in the next two years. In terms of volume and value of transactions made using credit cards at point of sale (PoS) terminals, HDFC Bank continued to lead the market, with shares of 26.4% and 28.1%, respectively. SBI gained market share in outstanding debit cards as well between March 2016 and September 2019, increasing its share to 36% from 29%. Bank of Baroda (BoB) held on to the second spot with a 6% share. Interestingly, Paytm Payments Bank broke into the top three among debit card issuers within 16 months of its launch, gaining a 5% share by the end of March 2019 and expanding it to 6% over the next six months. - financial express
🍒 YES Bank climbs 3% after Edelweiss upgrades stock to ‘Buy’ : Shares of YES Bank advanced over 3 per cent in early trade on Friday after Edelweiss Securities upgraded the lender to ‘Buy’ with a target price of Rs 101, indicating an upside of 40 per cent from the current market price. The brokerage house perceives YES Bank as a high risk-return potential candidate as base-case holds out the bank is here to stay, braving the known and unknown challenges and a temporary lull in earnings.“At its current 0.8 times FY21E P/B, the stock factors in multiple challenges and a clear under-valuation of its liability franchise. The m-cap-to-deposit at sub-10 per cent – lowest among peers – starkly reflects the under-appreciated franchise value. Once it navigates the challenges, the revamped business model would emerge stronger, sustainable and less volatile,” Edelweiss said in a report. - Economic times
🍒 Corporate frauds trebled in first seven months of FY20: SBI : orporate frauds at the State Bank of India (SBI) trebled in the first seven months of FY20 (2019-2020) as against the whole of FY19 (2018-19). The big scams to the tune of Rs 26,757 crore between April and November this year were reported by the country's biggest mass-lender to the regulators in comparison to Rs 10,725 crore in FY19, according to data revealed in the initial public offering (IPO) document of SBI cards cited by the Economic Times.The FY18 (2017-18) fraud disclosures by the SBI were at just Rs 146 crore which makes the comparison look starker. The scam cases have increased to 48 so far in FY20 from 25 in FY 19, and 8 in FY18. The value of frauds in the SBI data is at a minimum of Rs 100 crore, the report added. - Business Today..
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GST, RERA to benefit listed real estate companies:
READ MORE- https://www.gststation.in/gst-rera-to-benefit-listed-real-estate-companies/
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GST: Govt says no proposal to reduce taxes on petrol, diesel:
READ MORE- https://www.gststation.in/gst-govt-says-no-proposal-to-reduce-taxes-on-petrol-diesel/
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⛳ No GST on Discount and Incentives of Purchase: AAR Karnataka
🌴 In a recent case the applicant M/S Kwality mobikes, the Authority for Advance Ruling in Karnataka held that the volume discount received on purchase and retail in the form of credit note without any adjustment of GST is not liable for GST.
🌴 The brief fact of the case is that the applicant is in the business of supplying motor vehicles. The applicant in its regular course of business purchases the vehicles from the authorised supplier and it charges 28% GST plus applicable cess.
🌴 The authorised supplier allows the credit period of 30 days and also fixes sale targets to the applicant. Besides the purchase of the vehicle which is over and above the limit fixed on the regular purchase, the applicant is also eligible for a volume discount, which is paid on a monetary basis.
🌴 The authorised supplier issues a credit note and this credit note is not affecting the purchase price or sale price and hence no effect on GST collected in the invoices. The question involved in this application is whether the volume of discount received on purchases and retail is liable for GST.
🌴 The applicant submitted that the authorised supplier is issuing a tax invoice on the supply of goods to the applicant is taking credit of the input tax charged in the invoice.
🌴 The applicant when making more purchases is eligible for the volume discount on purchases and also the applicant when sells more than his target is eligible for the incentive and credit note is issued by the authorised supplier and no adjustment of price and GST is done either by the applicant or the authorised supplier. Hence the amount received in the form of incentive and does not affect the sale price of the goods already sold and hence there is no liability to charge GST on the same.
🌴 The credit note is issued as a post-sale event and which is not covered under section 15(3) of the CGST Act, 2017.
🌴 The authority comprising of members Harish Dharmia and Dr. Ravi Prasad.M.P held that the volume discount received on purchase and retail in the form of credit note without any adjustment of GST is not liable for GST. And also the amount received in the form of the credit note is actually a discount not supplied by the applicant to the authorised supplier, the applicant need not issue a tax invoice for this transaction.
Thanks for reading
