Corporate Snippets on April 7
Ø Urjit Patel has a grim warning for India's financial sector
Ø Yes bank can't declare co NPA for unpaid loan: HC
Ø India's growth may slip below 3% in FY21: KPMG
Ø 'Metals & mining sector to be hit if lockdown persists'
Ø Petrol sales shrink 15.5%, diesel 24% in March
Ø Japan PM Abe announces $1 trillion stimulus package
Ø Govt. frees exports of all APIs and formulations
Ø Life insurers will not invoke 'force majeure' clause for Covid-19 claims
Ø NHAI constructs highest ever total of 3,979 km national highways in FY20
Ø Rupee payments allowed for exports to Bhutan under RBI guidelines: Expert
Ø Rajan calls Covid-19 'economic emergency', advises Govt. to invite experts
Ø Covid-19: SEBI curtails cut-off timings for mutual funds from 3 pm to 1 pm
Ø Rolls-Royce to ditch profit, delivery targets, suspend dividend: Report
Ø Labour Ministry orders Bengal jute mills to extend lockdown
Ø CII-Kerala calls for action plan to strengthen industry
Ø ‘Aviation sector’s expectation of govt bailout unrealistic’
Ø Drug regulator pulls up Bione for selling unlicensed home testing kits
Ø India Ratings gives `stable’ outlook to IndiGrid’s market-linked debentures
Ø Power Ministry warns discoms to pay bills on time, promises more funding
Ø WHO warns masks 'no silver bullet' for ending coronavirus pandemic
Ø Japan's Shinzo Abe unveils 'massive' coronavirus stimulus worth 20% of GDP
Ø Volkswagen loses 'damning' dieselgate UK class lawsuit
Ø COVID-19: IMF sees early signs of recovery in China
Ø Fitch downgrades Cairn India to ‘B+’ on lower oil prices
Ø Bacardi to produce 70,000 litres of hand sanitisers
Ø Post-lockdown FMCG industry ready to scale up production
Ø Insurers cannot decline covid19 death claim settlement
Ø Mukesh Ambani's net worth down to 17th on Global Rich List
Ø India's March gold imports hit 6.5 year low
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✅SEBI gives India Inc more time for Q4 filings – deadline is now 30 June
✅Applicability of Companies Auditor’s Report Order (CARO) deferred by a year to FY 2020-2021
✅No additional fees shall be charged for late filing during a moratorium period from 01 April to 30 September 2020
✅Additional six months given to newly incorporated companies for filing declaration
for commencement of business which is presently six months
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👉 NCLAT has said that the period of lockdown will be excluded from the 90-day deadline set for the completing the debt resolution process of IL&FS.
"The period of lockdown/shutdown ordered by the Central Government and the State Governments shall be excluded for the purpose of counting the period of 90 days as has been ordered by this Appellate Tribunal vide judgment dated 12th March, 2020," it said. Justice Bansi Lal Bhat, along with Justice Anant Bijay Singh and Ashok Kumar Mishra, Member (Technical) stated that as per the previous orders of appeals coming up for listing on April 14, the same will not be applicable now. Next date of hearing will be notified later, NCLAT said.
The issue on hand relates to the insolvency proceedings of IL&FS. On March 12, NCLAT rejected the objections raised by creditors over distribution of funds under the revised distribution framework. Justice S J Mukhopadhyaya rejected the opposition of creditors saying that the money invested in IL&FS by SBI, LIC, the ILFS Employees Welfare Trust and others be constituted as public money and hence the distribution framework under the Insolvency and Bankruptcy Code (IBC) should not be followed. In accordance, it set a time limit of 90 days for concluding the resolution process.
IL&FS has a total debt of ₹94,215 crore and resolution plans amounting to ₹40,000 crore have been approved for various group entities.
👉 New Delhi:The government has extended the tenure of acting President of National Company Law Tribunal BSV Prakash Kumar for another three months. The Ministry of Corporate Affairs (MCA) has informed the NCLT about the decision to extend the tenure to another three months or till the joining of new President, whichever is earlier.
"... it has been decided to extend the tenure of Shri BSV Prakash Kuamr as acting President for a period of another three months with effect from 5th April, 2020, or till joining of new President, or until further orders, whichever is earlier," the MCA said in an intimation issued to Registrar, NCLT.
"A notification for the same would be issued in due course."
Earlier, Kumar was appointed as acting President for a period of three months from January 5 after the retirement of Justice MM Kumar as the NCLT President.
This three months tenure was set to expire on April 5.
Presently hearing of all the NCLT benches across India is closed, following the lockdown declared by the government to contain Covid-19 pandemic.
The NCLT was set up under section 408 of the Companies Act, 2013 on June 1, 2016.
Besides a Principal Bench at New Delhi, it has fourteen other benches across India in cities, including Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Cuttack, Jaipur, Kochi, Amravati and Indore.
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👉🏻Suggestions are welcomed for better implementation of Vivad Se Vishwas scheme - CBDT
(Govt is open to suggestions from stakeholders for better implementation of the direct tax 'Vivad Se Vishwas' scheme, CBDT Chairman P C Mody said)
👇🏻 👇🏻 👇🏻
https://bit.ly/2V6dUmW
👉🏻32 FAQs on Companies Fresh Start Scheme, 2020
(MCA issued 32 FAQs on Companies Fresh Start Scheme, 2020, Hope all stakeholders will get answer of their query from the FAQs)
👇🏻 👇🏻 👇🏻
https://bit.ly/2xbWMnA
👉🏻Whether an Auditor can file Tax Returns of the Company in which he is Auditor?
(Whether an Auditor can file Tax Returns of the Company in which he is Auditor discussed by CA. Vivek Khurana)
👇🏻 👇🏻 👇🏻
https://bit.ly/3bWGxtl
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Section 234E under Income Tax Act is not violative of Constitution of India. Qatalys Software Technologies Private Limited Vs Union of India (Madras High Court)
High Court of Gujarat gave an important ruling regarding detention of goods of the assessee in case of Vivan Steel (P.) Ltd. V. State of Gujarat [2020] 113 taxmann.com 346 (Gujarat) that Goods and vehicle to be released after paying tax and penalty.
RBI has allowed the foreign remittances from Non-Residents to PM-CARES Fund to fight against the COVID-19 pandemic. The RBI has directed Authorised Dealer Category – I (AD Cat – I) banks is invited to Paragraph 4 of the Master Direction – Opening and Maintenance of Rupee/Foreign currency Vostro Accounts of Non-Resident Exchange Houses dated January 01, 2016 (as amended from time to time), regarding permitted transactions under the Rupee Drawing Arrangement (RDA) channel.
Bombay High Court stayed the bail granted to former MD and CEO of Infrastructure Leasing and Financial Services (IL&FS) Financial Services Ltd (IFIN) Ramesh Bawa and former Vice Chairman Hari Sankaran, observing that they have been accused of offences punishable with more than 7 years, making them ineligible to be released on parole. Justice AK Menon noted that the said case does not fall under the category of "extremely urgent matter" which is what the Chief Justice of the High Court has mandated special benches to hear during this lockdown period.
Supreme Court has observed that the burden is on the person who alleges that the property is a joint property of an HUF to prove the same. Not only jointness of the family has to be proved but burden lies upon the person alleging existence of a joint family to prove that the property belongs to the joint Hindu family unless there is material on record to show that the property is the nucleus of the joint Hindu family or that it was purchased through funds coming out of this nucleus.
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SME bodies urge Centre, state for immediate measures to fight looming slowdown:
READ MORE- https://www.gststation.in/sme-bodies-urge-centre-state-for-immediate-measures-to-fight-looming-slowdown/
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Mitra writes to FM Sitharaman on ‘disappointing’ release of funds under 15th FC:
READ MORE- https://www.gststation.in/mitra-writes-to-fm-sitharaman-on-disappointing-release-of-funds-under-15th-fc/
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👉 Bidders for taking over the troubled housing finance company, Dewan Housing Finance Corporation (DHFL), will have to wait longer to know the fate of their bids. The last date for the submission of bids for the company has since been extended till May 7, according to the Financial Express. The last date was April 16. The 21-day extension matches the 21-day lockdown announced by the government with to curb the spread of coronavirus.
Incidentally, the Insolvency and Bankruptcy Board of India (IBBI) had already made an announcement that for there will be across the board amnesty for all cases involved and the 21 days of the lockdown will stand excluded from any deadline. There are number of days mandated under the IBC code where the insolvency resolution process is going on. The present extension of the last date for filing the bids for DHFL by 21 days is also part of this decision only.
The lenders to DHFL are prepared to sell the entire operations of the company to one buyer or to split the assets and sell in parts. The bids were also invited on those lines. 24 bids were received by the Committee of Creditors (CoC). After preliminary scrutiny, 22 of these 24 bids have been shortlisted. It is understood that 14 of these 22 are for taking over DHFL in its entirety. Some of the bidders for complete takeover included KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital, ARCIL Asset Reconstruction Company and Bain Capital. All of them have sent in their expressions of interest in acquiring the complete stake in DHFL. The case is with the National Company Law Tribunal, Mumbai branch.
👉 NEW DELHI: With multi-pronged strategies in place for IL&FS resolution, the government expects "substantial recovery" against the group's Rs 94,000 crore external debt and the recovered amount could be much more than the sum realised under the insolvency law so far.
Apart from the exercise of recasting the financial statements, an SFIO probe report regarding an IL&FS subsidiary is nearing completion and some matters are before the National Company Law Appellate Tribunal (NCLAT) and the Bombay High Court.
In late 2018, the problems at IL&FS came to light after some group companies defaulted on loan repayments resulting in concerns about overall impact on the financial system. The group's board was superseded by the corporate affairs ministry and various entities, including auditors and independent directors, came under the regulatory scanner for the alleged lapses.
While noting that the maze of transactions between hundreds of subsidiaries within the IL&FS group created a veil that concealed the real picture, Corporate Affairs Secretary Injeti Srinivas said timely intervention of the government prevented value destruction.
"Broadly, if you look at, against the Rs 94,000 crore external debt (around Rs 73,000 crore secured and Rs 21,000 crore unsecured), we expect substantial recovery. Far more than the average 43 per cent recovery we have had from the IBC (Insolvency and Bankruptcy Code) so far," Srinivas told PTI.
The NCLAT has approved the entire proposal of the government, which is in the "final stages of resolution".
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Taxpayers fear paying for GST ‘glitches’ through audits and litigation:
READ MORE-https://www.gststation.in/taxpayers-fear-paying-for-gst-glitches-through-audits-and-litigation/
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Release GST arrears to enable effective management of crisis: Amarinder:
READ MORE- https://www.gststation.in/release-gst-arrears-to-enable-effective-management-of-crisis-amarinder/
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