22 May 2K20
Ø Exporters getting order enquiries from US, Europe
Ø India to add only 5,000 MW solar capacity in 2020
Ø India's GDP to see 5% contraction in FY21, says Icra
Ø Govt eases norms of PCGS to help NBFCs, HFCs
Ø Domestic flights to resume from May 25: Government
Ø USD 575 billion investment opportunity in transport infra in next 5 yrs: Kearney
Ø Bank credit grows 6.52 pc; deposits up 10.64 pc
Ø Sebi gives exit option to Franklin Templeton's mutual fund investors
Ø Cabinet approves new methodology for awarding commercial coal mines
Ø Net enrolments with EPFO dip to 5.72 lakh in March from 10.21 lakh in Feb
Ø Govt to use RBI money to support NBFCs for just three months: Union Cabinet
Ø Centre considers market borrowing for GST compensation to states
Ø Global merchandise trade volumes likely to nosedive in H1, says WTO
Ø SEBI asks firms to reveal financial impact of Covid-19
Ø Bajaj Auto profit dips 3.86% to ₹1,354 crore in March quarter
Ø Union Cabinet approves Emergency Credit Line Guarantee scheme for MSMEs
Ø Centre releases ₹15,340 crore as GST compensation to States
Ø After 16% drop in sales, UltraTech eyes ‘solid’ Q1
Ø JSW Energy puts GMR Kamalanga buy on hold
Ø RIL’s Rights Entitlement shares rise 33% as Rs53,125 cr rights issue kickstarts
Ø Jaypee Infratech resolution behind bulk of banks' Jan-Mar recoveries under IBC
Ø NCDEX to launch India's first agri-futures index on May 26
Ø UltraTech Cement Q4 profit at ₹3,239 crore, net sales ₹10,745.62 crore
Ø 15th Finance Commission's fiscal consolidation panel to meet on Thursday
Ø GDP growth in this fiscal depends on intensity of Covid-19: FinMin report
Ø Covid effect: Crude oil import to fall 8.9% in FY21
Ø PFC-REC to clear genco dues directly from discom loans
Ø Dr Reddy’s Q4 net up 76% at Rs 764 crore on greater revenue contribution from US, Europe
Ø World Bank estimates 60 million people may fall into extreme poverty due to covid19
Ø Stimulus package fails to involve banks as frontline warriors, says RBI board member
Ø Foreign investors pull out $26 billion from Asian economies, $16 billion from India
Ø Migrant workers turn towards banking for employment
Ø Indian telcos' mobile growth weakens on virus: Fitch
Ø Banks to request FinMin to extend payment moratorium
Ø Airtel, Vodafone Idea jittery about Huawei’s gear supply
Ø MNRE may now hold auctions only for RTC and hybrid projects
Ø MNRE may now hold auctions only for RTC and hybrid projects
Ø FinMin sanctions Rs 92,077 cr to states as devolution of central taxes
Ø Govt to provide one-time guarantee of Rs 10,000 cr for NBFC assets, bonds
Ø AIF investments in Mauritius, Singapore and Honk Kong under Sebi lens
Ø Sebi eases 90-day curing period norm for defaulting firms post-downgrade
Ø Corporate revenues drop over 25% during Covid-19 lockdown: Survey
Ø Strides Pharma gets DGCI approval to test potential Covid-19 drug
Ø Government notifies Safe Harbour Rules for AY 2020-21, no change in rates
Ø Zydus Cadila supplies first batch of Covid Kavach ELISA to ICMR
Ø ONGC, NTPC to set up joint venture for renewable energy business
Ø Hindustan Zinc net dips; to pay dividend of ₹16.50 a share
Ø Covid-19 fallout: JSW deal to buy Kamalanga Energy put on hold
Ø States GST collections may dip 30 per cent this fiscal: ICRA
Ø Govt calls meet to mull reforms for drug regulation amid covid
Ø CCI approves Emami Cement acquisition by Nirma arm
Ø Rajan says migrant workers need money for vegetables, cooking oil, shelter
Ø Credit growth withers under lockdown as outstanding loans drop Rs1.36 trillion
Ø Govt allows banks to buy securities of low-rated NBFCs under PCGS 2.0
Ø Aditya Birla Sun Life Mutual Fund suspends inflows into two of its debt schemes
Ø Airtel acquires 10 per cent stake in AI startup Voicezen
Ø GST Analytics wing to identify risky suppliers to exporters
Ø Rs 50 crore investment criterion should define MSMEs for export sector: AEPC
Ø India to resume domestic passenger flights from May 25
Ø Recession-hit Japan's exports, imports fall due to pandemic
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Executing Contracts Electronically in times of Covid-19 – By Adv Amit A. Tungare
Many a times, Parties to the contract are skeptical about concluding the contract via e-mail. Some believe that a contract if concluded over e-mail and left unstamped would leave major lacuna in its legal validity and the other party may challenge its validity if and when enforced. There are doubts that if the parties agree to the terms over e-mail, the contract may not be considered legal. There is always a belief that such contracts allows the party to take the terms very causally and either party can easily wriggle out of the deal without much hassle.
https://www.linkedin.com/posts/ibclaw_executing-contracts-electronically-in-times-activity-6669058387290013696-R6pg
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👉Important Due Dates For GST :
GSTR 3B ( April,2020 ) : May 20 , 22 , 24 (2020) as the case may Be .
CMP 08 (Jan to Mar 2020) : july 07th , 2020 .
GSTR-1 (Apr,2020) : May 11th, 2020 ( if Turnover exceeds rs 1.5 cr. or Opted to file monthly Returns.
GSTR-1 (Apr-Jun,2020) : Jul 31st, 2020 ( if Quarterly return for registered persons with aggregate turnover upto Rs 1.5 Crores)
GSTR-4 (2019-20): Jul 15th, 2020 .
GSTR-9 (2018-19) : Sep 30th, 2020
GSTR-9A (2018-19) : Sep 30th, 2020
GSTR-9C (2018-19) : Sep 30th , 2020
👉NOTE : In relation to GSTR1 and GSTR 3B there is no change in due Dates but if these are filled up to 30th June 2020 , then govt. has provided relief from late fees and penalties.
👉NFRA invites comments from regulated entities on
The Draft Procedure for Submission of Audit Files to NFRA by 31st May, 2020. - (19-05-2020) .
https://www.icai.org/new_post.html?post_id=16522&c_id=240
👉The last date for submission of applications for the posts of AGM, Manager and Assistant Manager in NFRA on deputation/ short term contract basis 15-05-2020 to 30-05-2020.
http://www.mca.gov.in/Ministry/pdf/AGM_11052020.pdf
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👉 The National Company Law Tribunal (NCLT), Bengaluru, has ordered the winding up of Super Royal Holidays India Pvt. Ltd., Bengaluru, by declaring that the incorporation and conduct of business of the company was for “fraudulent objects” of ponzi scheme in the guise of offering holiday tour packages by collecting membership fees.
The Ministry of Corporate Affairs (MCA) sought the winding up of the company following the outcome of an investigation carried out after noticing that the company had deposited and withdrawn around ₹10 crore during the period of demonetisation in 2016.
“On perusing the financial statements of the company, it is clear that the money they collected by way of membership fees etc. was largely being pocketed by agents and director-cum-shareholders by way of commission, awards, dividends for directors, etc., leaving paltry remains for the so-called service [tour packages] for their members. Therefore, it is established that the company is running a ponzi scheme, as rightly contended by the MCA,” the tribunal held.
The tribunal also said that the company was “established exclusively for the benefit of the three promoters-cum-directors-cum-shareholders and their agents” and hardly any service was provided to most its customers.
The company enrolled members by collecting ₹11,000 for single membership, ₹22,000 for triple membership, and ₹33,000 for family membership. This life membership fee carried an offer of free tour packages for two nights/three days, to be availed within the next three years by paying a package cost ranging ₹375 to ₹4,800, depending upon location. The company claimed that it had around two lakh members, but could not produce the complete membership details before the authorities.
On examination of the company’s business model, the MCA found that the company was running “nothing but a ponzi scheme by collecting deposits under the guise of membership fee/enrolment fee from the general public”.
👉 The last quarter (January-March) of financial year 2019-20 was quite fruitful for banks in terms of stressed asset resolution and recovery under the Insolvency and Bankruptcy Code (IBC), realising 64% of their dues. This was primarily led by ₹23,223 crore coming from the resolution of Jaypee Infratech Ltd.
While Jaypee's insolvency proceedings began in August 2017, the resolution plan was approved just two months ago, state-owned NBCC emerging as the successful buyer of the troubled company. The resolution plan approved in Jaypee Infratech has been challenged before the National Company Law Appellate Tribunal (NCLAT).
The realisation ratio (realisation as a percentage of dues) in the March quarter is higher than the total realisation ratio since the beginning of IBC at 46% and also higher than that of the December quarter of FY20, showed data from the Insolvency and Bankruptcy Board of India (IBBI). It was at 12.16% in the December quarter. These realisation numbers are based on resolution plans approved by bankruptcy tribunals and do not necessarily mean that banks have recovered the dues.
The average time taken for competition of the resolution process is 375 days, showed IBBI data. But last-minute litigations have plagued the system. Take the instance of Essar Steel. While IBC prescribes for asset resolution to happen within 330 days, Essar Steel’s resolution and sale to Arcelor Mittal took 866 days.
This resolution plan of Jaypee Infratech has almost single-handedly increased the aggregate realisation for financial creditors or lenders. Then there were assets resolutions that have led to frugal recovery for banks. For instance, in the case of Zion Steel Ltd, banks will recover ₹15 crore of the outstanding debt of ₹5,367 crore.
Since finance minister Nirmala Sitharaman announced that there will be no fresh cases in the IBC for the next one year, bankers have been worried about drop in resolutions. Mint reported on 18 May that lenders are concerned over deteriorating asset quality post covid-19 and also hamstrung with regard to resolution in the absence of IBC.
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ICAI extends time-period for
commencement-of-practical.
training-for-CA Students
https://www.icai.org/new_post.html?post_id=16526&c_id=347
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👉 Lockdown has put final clearance from National Company Law Tribunal (NCLT) for NHPC limited to take over insolvency hit 120MW Rangit Stage IV hydroproject in Himalayan state Sikkim to a halt. But the Mini Ratna PSU has started its homework on the project to minimize cost and time overrun.
“After official clearance from NCLT, NHPC also needs formal nod from Public Investment Board (PIB) and Consultative Committee of Economic Affairs(CCEA) to start working on the project. This lockdown is undoubtedly for a greater cause. But it is delaying all these proceedings making things harder,” said D. Chattopadhyay, Executive Director, NHPC.
After emerging out as the highest bidder under a resolution plan for insolvency bound Hydropower Company Jal Power Corporation’s ‘Rangit stage IV’ HE Project, with its bid of Rs 165 crores.
“While waiting for the clearances, we have started preparing our tender award documents to avoid delay in initiating field work. These homework includes civil mechanical as well as electrical all the three main sectors. This can minimize cost or time overrun for the project.
Any delay in execution pushes up the load of IDC (Interest During Construction) for the capital borrowed by us,” said Chattopadhyay.
👉 The last quarter (January-March) of financial year 2019-20 was quite fruitful for banks in terms of stressed asset resolution and recovery under the Insolvency and Bankruptcy Code (IBC), realising 64% of their dues. This was primarily led by ₹23,223 crore coming from the resolution of Jaypee Infratech Ltd.
While Jaypee's insolvency proceedings began in August 2017, the resolution plan was approved just two months ago, state-owned NBCC emerging as the successful buyer of the troubled company. The resolution plan approved in Jaypee Infratech has been challenged before the National Company Law Appellate Tribunal (NCLAT).
The realisation ratio (realisation as a percentage of dues) in the March quarter is higher than the total realisation ratio since the beginning of IBC at 46% and also higher than that of the December quarter of FY20, showed data from the Insolvency and Bankruptcy Board of India (IBBI). It was at 12.16% in the December quarter. These realisation numbers are based on resolution plans approved by bankruptcy tribunals and do not necessarily mean that banks have recovered the dues.
The average time taken for competition of the resolution process is 375 days, showed IBBI data. But last-minute litigations have plagued the system. Take the instance of Essar Steel. While IBC prescribes for asset resolution to happen within 330 days, Essar Steel’s resolution and sale to Arcelor Mittal took 866 days.
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👉🏻RBI cuts repo rate, extends moratorium on term loans by 3 months
(RBI announced that it has decided to cut the repo rate cut by 40 basis points from 4.4 per cent to 4 per cent, adding that the reverse repo rate has been reduced to 3.35 per cent)
👇🏻 👇🏻 👇🏻
https://bit.ly/2zVWOBl
👉🏻Appointment of Internal Auditors for Noida Metro Rail Corporation
(Noida Metro Rail Corporation intends to appoint a consultant for providing internal audit services for a period of one year)
👇🏻 👇🏻 👇🏻
https://bit.ly/36omqTf
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Announcements: RBI Governer: 22/05/2020
1. Term loan moratorium extended till August 31, 2020 - The loan moratorium will be extended till August 31, 2020. This makes it a six months moratorium.
2. Deferement of Interest on Working Capital - Interest on working capital is deferred by another 3 months i.e. till 31st August, 2020.
3. Conversion of Interest on working capital to interest term loan - Lending institutions are being permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan (Repayable before 31st March, 2021).
4. Margin for Working Capital - Drawing Power - Lending institutions are being permitted to restore the margins for working capital to the original level by 31st March, 2021.
5. Reduce repo rate by 40 bps to 4 percent - Accordingly, Interest rate would be reduced.
6. Export Credits - Maximum permissible export credit (Pre and Post Shipments) extended from 12 months to 15 months.
7. Payment against Imports - Extension of time limit for making payments against imports from 6 months to 12 months
8. Support to EXIM Bank - Facility of Rs 15,000 crore line of credit for 90 days for US dollar swap facility will be provided to EXIM Bank.
9. Extension of Resolution Timelines - Deferement or moratorium period shall excluded while calculating 180 days resolution period.
10. Group Financing- Group exposure extended from 25% to 30%
10. Support to SIDBI - In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will be offered.
11. Assets Classification - Loan Moratorium shall not have any implications on changes in assets classification, credit history and ageing norms etc.
12. Trade Impact - Volume of world trade can shrink by 13%-32% this year.
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