Corporate Snippets on March 27
Ø SEBI asks states to exempt capital mkt entities
Ø White House, Congress agree on $2tn virus rescue bill
Ø Financial services dept for unhindered banking services
Ø Eco census survey will take longer post lockdown
Ø Indian airlines may incur $ 3.6 bn loss in June qtr
Ø ONGC gas output drops as shut factories refuse supplies
Ø World Bank, IMF urge debt relief for poor nations
Ø Govt. likely to unveil Rs 1.5 trn stimulus for coronavirus downturn: Report
Ø Flipkart to resume sales of products after assurance on staff's safety
Ø ONGC, Oil India stare at steep earnings cut as crude price crashes
Ø YES Banks needs up to Rs 13,000 crore in equity in 1-2 years: ICRA
Ø Rural sector stressed as Covid-19 disrupts supplies, spikes unemployment
Ø SEBI to limit commodity futures trading till 5pm: Sources
Ø Chinese firms resume export of pharma inputs to India
Ø NTPC’s installed capacity touches 58,816 MW
Ø Suzlon postpones EGM to April 7
Ø Centre extends permission to Tata Power to operationalise Bengaluru defence SEZ unit
Ø Coronavirus: Lockdown forces 1.7 lakh Infosys techies to work from home
Ø COVID-19: South Korean firm's testing kit gets NIV’s validation for use in India
Ø IndianOil cuts refining capacity by around a third, cooking gas demand up
Ø Fiscal stimulus is new unknown for India’s jittery bond traders
Ø India’s crude steel output grows 1.5% to 9.56 million tonnes in February: worldsteel
Ø Nationwide lockdown to impact housing sales, say realtors
Ø Moody’s downgrades DIAL rating by one notch to Ba2
Ø Lenders worried: Loan repayments start drying up
Ø CBI grills three in DHFL scam
Ø Indian Bank announces additional funding facility
Ø Mylab’s gets nod for first Made-in-India Covid-19 test kit
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Ø CRISIL cuts FY21 growth estimate sharply to 3.5 per cent
Ø PSBs announce COVID-19 emergency credit line
Ø COVID-19 effect: US jobless claims hit 3.3 million
Ø United Spirits shuts down manufacturing ops in India
Ø Bank merger on track; to take effect from April 1: FM
Ø SEBI allows top 100 companies to delay AGMs
Ø Moody's warns of downgrading Tata Motors
Ø Covid-19: Rs 1.7-trn relief package welcome, but more support needed
Ø With 75% economy under lockdown, analysts see sharp fall in GDP
Ø Banks plan to shut down most branches during coronavirus lockdown: Report
Ø US Senate offers $58 bn aid to airlines as they struggle to stay afloat
Ø Centre asks states to allow manufacture, distribution of packaged foods
Ø Covid-19: Apollo Hospitals plans to set up 5,000 isolation rooms
Ø Cipla gets USFDA nod for generic acid reflux drug
Ø Centre signs agreement for sale of Kamarajar Port, THDC and NEEPCO
Ø Covid-19 impact: CII sets up a fund for MSMEs
Ø Covid-19: Govt to pay employer, employee’s PF contribution for 3 months
Ø G-20 video conference: PM pitches for new crisis management protocol on Covid-19
Ø Yes Bank to raise up to ₹5,000 crore after govt-led rescue
Ø 45 distilleries, 564 manufacturers get permission to produce hand sanitisers
Ø Coronavirus: M&M ready with ventilator prototype, to cost less than ₹7,500
Ø SEBI disposes of case against IDFC Asset Management, BNP Paribas Asset Mgmt
Ø G20 leaders pledge USD 5 trillion, ‘united’ response to coronavirus crisis
Ø Coronavirus effect: Smartphone, consumer appliance companies extend product warranties
Ø Coal India relaxes payment terms, reschedule e-auctions
Ø Rupee settles 78 paise higher against USD after govt measures to fight covid 19
Ø Singapore unveils USD 33.17 bn economic package to tide through coronavirus crisis
Ø Sensex ends 1,400 pts up, Nifty above 8,600 after FM unveils relief package
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SECTION 179 OF THE INCOME-TAX ACT, 1961 - COMPANY IN LIQUIDATION - LIABILITIES OF DIRECTORS
Scope of : Where Assessing Officer issued a notice under section 179 against assessee-director of a company seeking to recover tax dues of said company from assessee, since said notice was totally silent about fact that tax dues could not be recovered from company and, further, there was no whisper of any steps being taken against company for recovery of outstanding tax amount, impugned notice under section 179 against assessee was to be set aside - Sonal Nimish Patel v. Assistant Commissioner of Income-tax Cirlce-4(1)(2) - [2020] 114 taxmann.com 705 (Gujarat)
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✅ Website for CORONA updates. Updating every 4 hrs about CORONA virus situation in India..
www.covid19india.org
✅ ICAI Learn to earn Free Structured cpe hours
https://www.icai.org/onlineresources/
✅ MCA - Special Measures under Companies Act, 2013 (CA-2013) and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak
http://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf
✅ CARO 2020 dated 24.03.2020
http://www.mca.gov.in/Ministry/pdf/Notification_25032020.pdf
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👉🏻Extension of Statutory Audit of Annual Accounts of Public Sector Banks
(Department's Letter of even number, dated 10-02-2012 regarding the above subject is hereby withdrawn. Now Due Dates postponed and will be as per SEBI timeline (which has relaxed by a month)
👇🏻 👇🏻 👇🏻
https://bit.ly/3aoXhcs
👉🏻FinMin writes to RBI for relaxing NPA norms for farm loan
( Finance Ministry has asked the RBI to relax asset classification norms for farm loans extended by banks following the stress faced by the agriculture sector)
👇🏻 👇🏻 👇🏻
https://bit.ly/33QnGh0
👉🏻PM announces WhatsApp helpdesk number for providing Coronavirus information
(PM announced that the Centre has tied up with WhatsApp to create a helpdesk for providing credible information on coronavirus. The number is 9013151515)
👇🏻 👇🏻 👇🏻
https://bit.ly/39kEcqH
👉🏻Benami Law and its interplay with other Laws
(Benami Law and its interplay with other Laws explained by CA (Adv) Ashwani Taneja, Ex Member - ITAT.)
👇🏻 👇🏻 👇🏻
https://bit.ly/33Tt7vC
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Finance Minister announced a slew of measures ranging from extension of deadline for filing income tax returns to waiving cash withdrawal fee for using automatic teller machine (ATMs) of other banks and relaxing threshold for insolvency proceedings to Rs 1 crore. The relaxations announced by the finance minister came in the backdrop of lockdown in numerous cities to contain the spread of deadly coronavirus.
Finance Minister said that the deadline for filing income tax returns for the financial year 2018-19 has been extended to June 30, 2020 from March 31, 2020. The interest rate on delayed payment of returns has also been cut to 9 per cent from 12 per cent. The government also extended the last date for linking PAN with unique biometric ID Aadhaar to June 30 from March 31.
GST: it is extending the filing of Return for the month of March, April and May 2020 and composition returns under GST June 30. Now 30th June as the date, specific regions will have dates like 27, 29 or 30th. Significantly, the FM also said companies which have less than Rs 5 crore turnover will not have to pay interest, late fee or penalty. For bigger companies late fee and penalty will not apply and only interest at a reduced rate of 9% will be charged.
Sebi said the entities providing capital and debt market services will remain operational during the nationwide lockdown for 21 days, announced by Prime Minister Narendra Modi as part of efforts to curb spread of COVID-19 pandemic.
Finance Minister said that companies' expenditure to fight the coronavirus (COVID-19) pandemic will be considered valid under corporate social responsibility (CSR) activities. The coronavirus outbreak will be treated as a disaster.
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FM Sitaraman Package of 1.7Cr Lakh
1. Pradhan Mantri Ann Yojna- 5 Kg Cereals (Rice or Wheat) and 1 Kg Pulses for Next 3 Months in addition to what they are Getting Write now through PDS. This they can take in two Instalments.
2. Cash Transfer- Person who will be covered -Farmers, MANREGA, Poor Widows, Poor Pensionors, Poor Handicap, Women Having Jan Dhan Accounts, Ujwala Scheme Beneficeirys, Women in Deen Dayal Upadhya Schemes, Construction Workers.
3. Farmers- Already Receiving 6000 annually. Out of this 2000 will be given upfront now.
4. MANREGA- Wage increase and will benefit 5cr Families. Daily Wages increased from 182 to 202. Annual benefit of Rs 2000.
5. Old Age People, Disabled and Widow- Additional Exgrasia of Rs 1000 in two instalments will help 3cr Person will get benefited.
6. Women Jan Dhan Account Holder Exgratia Amount of Rs 500 per Month for next 3 Month. Will benefit 20cr Womens.
7. Ujwala Scheme Beneficiary- 8Cr of BPL Family will Be given Free Cylinders for Next 3 Months.
8. Women Self Help Group 63 Lakh SHG - Will Get Colletral Free Loan of 20 Lakh earlier it was 10Lakh. These SHG impact 7cr Households.
9. Organised Sector- Govt of India will pay the EPF Contribution of Employer and Employee that comes to 24% for Next 3 Months. This is for all those organisation having are less than 100 Employees and out of those 90% of employee are drawing less than 15000/- salary. And For the benefit of 80 Lakh Employees EPFO regulation will be amended to allow non refundable advances* of 75% of EPFO account Balance or Equivalent to 3 Month of Wages whichever is Less. So All Workers can withdraw money from EPFO Account. This will benefit 4Cr Workers registered with EPFO.
10. Construction Workers- We have 3.5Cr Registered workers in a Central Act specifically made for Construction workers. The govt have 31000cr of Fund in it. Govt to use this fund. Govt to give direction to state govt to utilise this fund for the benefit of construction workers.
11. District Mineral Fund- Will be utilised for Medical Testing Facility, Medical Screening, Providing Health attention. Distt have been given direction to utilise this fund.
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Corona Impact on Ind AS Reporting:
1. Impairment of non-current assets and goodwill – e.g. impact on future cash flows due to low demand for products or services.
2. Provisions for Onerous contracts – e.g. Delay in fulfilment of contractual obligations may also result in penalties to be provided for.
3. Valuation of inventory – e.g. impact of decline in net realisable value.
4. Expected Credit Losses (ECLs) – e.g. understanding of credit risk, timing and uncertainty of future cash flows such as impact on recoverability of trade receivables including estimate of expected credit losses
5. Deferred tax assets – e.g. recoverability of deferred tax assets in future.
6.Insurance claims – e.g. estimate possible compensation surrounding loss of profits and business disruption including timing of recognition of such claims.
7. Fair value measurement – e.g. considering significant change in the assumptions used to measure fair value of the assets and liabilities of a company at the end of the reporting period.
8. Revenue Recognition – e.g. revision of estimates of variable consideration and also timing of revenue recognition including assessment of whether consideration is probable in case of sales to customers in COVID-19 affected states in India.
9. Leases – e.g. determination of lessee’s incremental borrowing rate on account of change in its borrowing costs consequent to decline in its credit rating, assess the right-of-use assets for impairment, etc.
10. Employee benefits – e.g. changes to remuneration policies, modifications to share-based payment arrangements, etc.
11. Govt. Grants – e.g. monitor government actions and legislation to identify all assistance given by the Govt. that may meet the definition of a government grant, etc.
12. Going Concern – e.g. assess whether the current events and conditions cast significant doubt on the company’s ability to continue as a going concern.
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RBI Governor Presser Highlights :
1. Repo rate reduced by 75 basis points to 4.4%
2. Rev repo reduced by 90 basis points to 4%
3. GDP growth for Q4 19-20 and FY 20-21 to be affected
4. Aggregate demand may weaken
5. Future outlook uncertain and negative
6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores
7. Min daily CRR balance reduced from 90% - 80% till 30/06/2020
8. 3.74 lakh crore liquidity injected
9. 3 month moratorium on payment of instalments of Term Loan outstanding
10. Interest on WC facilities to be deferred by 3 months
11. Such deferment not to be considered for NPA
12. Revised DP calculations by reassessing WC cycle
13. All measures not to effect credit history
14. Total liquidity injection 3.4% of GDP
Regards
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