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Thursday, 7 May 2020

7 May 2020 News and Updates

Corporate Snippets on May 7
 
Ø GSK selling $3.45 bln stake in Hindustan Unilever

Ø Maruti to resume production in Manesar from May 12

Ø India saves Rs 89.12k cr in 2018-19 by energy efficiency

Ø EU forecasts 'recession of historic proportions'

Ø Govt. bans exports of alcohol-based hand sanitizers

Ø Virus upends Anil Agarwal's $1 bn oil deal

Ø WHO warns of new lockdowns if transition not managed carefully
 
Ø 93% India Inc. workers stressed about returning to office: FYI Survey

Ø Petrol, diesel excise hike can add Rs 1.4 trn to Govt's coffers: Barclays

Ø Large stimulus may attract sovereign rating downgrade, say experts

Ø China's exports, imports set to post double-digit declines in April: Report

Ø Birlas infuse Rs 1,100 cr in Essel Mining to pare debt of group firm IGH
 
Ø India’s edible oil imports dropped 34% in April

Ø Global cotton consumption likely to fall 11.8%

Ø Energy efficiency schemes led to savings of around ₹90,000 crore: PWC report

Ø Jet lenders to make another attempt to find a buyer

Ø Dr Reddy’s gets USFDA’s nod for new migraine drug

Ø BSNL plans to extend validity of contentious 4G tender to May 25

Ø PNB seeks extension of loan moratorium for MSMEs from RBI

Ø Aditya Birla family to move SC against Harsh Lodha in MP Birla tussle

Ø Rating announcements on Edelweiss, Shriram firms to add pressure on debt MFs

Ø SBI to extend moratorium to NBFCs and microlenders

Ø Royal Enfield, TVS Motor resume operations
 
Ø Service activities shrink to all-time low; PMI hits near zero

Ø Indian Overseas Bank, Bank of Maharashtra cut lending rates

Ø CIL’s supply to power sector falls in March amid slump in coal demand

Ø Google Meet video calling now integrated inside Gmail to take on Zoom

Ø Oil marketing companies shares drop 13%, after hike in excise duty on petrol, diesel

Ø Coronavirus lockdown causes historic spike in layoffs in India

Ø Oil prices slide as US-China tensions offset virus hope
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👉 The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the sale of Uttam Value Steel Ltd and Uttam Galva Metallics to a joint consortium of CarVal Investors and Nithia Capital Resources Advisors for ₹2,300 crore, said a person aware of the development.

“This is among the first resolutions where the corporate insolvency resolution process (CIRP) of two companies worked in tandem. The two companies are interlinked in terms of production and therefore getting two different resolution plans for them made no sense," said the person quoted above. He added that Uttam Galva Metallics was filed in NCLT Chandigarh, the petition against the other company was filed in Mumbai.

these connected companies, the case was transferred from Chandigarh to Mumbai," the person said.

The resolution plan would allow lenders to get close to 40% of their claims for both the companies. While the resolution professional (RP) admitted ₹3,634 crore of financial creditor claims in Uttam Galva Metallics, it was at₹2,479 crore for Uttam Value Steel, as on 9 April. Union Bank of India has the highest exposure in Uttam Galva Metallics at ₹921 crore, followed by Bank of Baroda at ₹680 crore and Punjab National Bank at ₹571 crore, among others.

Union Bank of India also has the highest exposure in Uttam Value Steel, at ₹589 crore. The other lenders are Punjab National Bank at₹466 crore, State Bank of India at ₹416 crore and Bank of Baroda at ₹277 crore, among others.

While the joint resolution plan was approved by the committee of creditors (CoC) in April last year, SSG Capital, the other bidder for these assets contested the decision. The case to decide on SSG’s claims was then heard by a two-judge bench in Mumbai NCLT, where both judges took opposing views. The matter was then heard by the principal bench of the NCLT in New Delhi which dismissed SSG’s plea.


👉 The National Company Law Tribunal (NCLT) has approved the resolution plan submitted by a consortium of CarVal Investors and UK-based Nithia Capital Resources Advisors to acquire debt-laden Uttam Value Steels Ltd under insolvency proceedings.

The NCLT’s Mumbai bench, in its order on April 30, said the resolution plan submitted by a consortium of CarVal Investors LLP (Carval Funds) and Nithia Capital Resources Advisors LLP stands approved, Uttam Value Steels informed the stock exchanges.

In June 2018,  the Mumbai-based iron and steel manufacturer, along with another associate firm Uttam Galva Metallics Ltd, was admitted for resolution under the Insolvency and Bankruptcy Code (IBC).

While the corporate insolvency resolution process (CIRP) of Uttam Galva Steels was withdrawn by petitioner State Bank of India (SBI) on November 1, 2018, Uttam Value Steels continued to be under the IBC process.

Engaged in the manufacturing of steel and capital equipment products, Uttam Value Steels’ admitted claims as on August-end 2019, stood at Rs 196 crore.

In April 2019, lenders-led by SBI had approved the resolution plan of a consortium of Arcil and CarVal Investors, an arm of US-based food and agriculture group Cargill Inc., which had offered the sum for two stressed units of Uttam Galva – Uttam Value Steels and Uttam Galva Metallics.


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👉🏻Govt plans pre-packaged IBC deals to ease caseload
(The plan to bring pre-packaged IBC has been in the works for some time and experts said the current crisis may be a good time to implement it)
👇🏻 👇🏻 👇🏻
https://bit.ly/2WyUeZx

👉🏻Govt appoints Tarun Bajaj as Director on RBI Central Board
(Govt  has appointed Economic Affairs Secretary Tarun Bajaj as a director on the central board of Reserve Bank of India)
👇🏻 👇🏻 👇🏻
https://bit.ly/2WwffUE

👉🏻Unique Document Identification Number for Bank Audit
(Mandatory requirement of Generation of UDIN at the time of Bank Audit with reference to FAQs of ICAI)
👇🏻 👇🏻 👇🏻
https://bit.ly/3doU79H

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👉 The National Company Law Tribunal has cancelled the summer vacation at all its Benches for the year 2020.

The President of the National Company Law Tribunal on Tuesday passed an order regarding this stating the Summer Vacations falling in the months of May, June and July 2020 as according to the calendar of the respective NCLT Bench stand cancelled. All Benches of NCLT will therefore remain functional during the said period.

The functioning of National Company Law Tribunal had previously been restricted along with suspension of all judicial work since the lockdown has been imposed in the Country due to outbreak of the COVID-19 pandemic.

In view of the lockdown announced by several State and Central Government in COVID-19 affected districts, all Benches of the National Company Law Tribunal had ordered its closure for judicial work. According to the Notice issued on, it was also notified that for unavoidable urgent matters, an application can be filed through email to the registry NCLT after service of notice to the other side.

In a more recent development the National Company Law Tribunal, also appealed to the stakeholders and litigants under Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016 to file Joint Memo of Written Submissions, in order to expedite the virtual hearings.


👉 The dedicated bankruptcy court has approved the revival plan for Mumbai-based Trimax IT Infrastructure & Services from the local subsidiary of Nasdaq-listed Ebix Inc.

Ebix Software India (ESIPL) will pay upfront Rs 75 crore to acquire the company. The company owed over Rs 1,918 crore to its lenders, including about Rs 1,700 crore to financial creditors.

“It is made clear that the resolution applicant (Ebix Software) shall takeover the corporate debtor (Trimax IT) with all its assets and liabilities as per terms of the approved resolution plan,” said a Mumbai-bench of National Company Law Tribunal (NCLT) comprising BSV Prakash Kumar and V Nallasenapathy in its 16-page order.

On May 4, while approving the resolution plan, the tribunal also said, “we approve the resolution plan...which shall be binding on the corporate debtor and its employees, members, creditors, guarantors, resolution applicant and other stakeholders involved in the resolution plan.”

Last year in November, lenders approved the revival plan submitted by Ebix Software with 75.22% voting in favour of the company. Avil Menezes, the resolution professional (RP) was not immediately available to comment on the NCLT’s ruling.

The liquidation value of the company was about Rs 103 crore while the fair market value of the company was Rs 197 crore.

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GST: Validity of E-way generated till 24.03.2020 which expired from 20.03.2020 to 15.04.2020, extended till 31.5.20. Notification 40/2020-CT of 5.5.2020. 

GST: Notification No. 41/2020-Central Taxissued to extend the time limit for furnishing of Annual Return and Reconciliation Statement for the Financial Year 2018-19 till 30th September, 2020. 

Delhi High Court has allowed tax credits thru GST Trans-1 to all dealers upto the period of limitation of 3 years, writ petition no.WP(C) 9575/2017 pending before the Court( Being Regularly pursued)finds a categorical mention in para 15 on page 15 of this path breaking judgment. 

Insolvency regulator IBBI has come up with a novel initiative of seeking public and stakeholders comments on all the regulations framed by it so far since the enactment of the Insolvency and Bankruptcy Code in 2016. The idea is to enable the Insolvency and Bankruptcy Board of India (IBBI) get an universe of ideas based on which the extant regulatory framework could be fine-tuned.

RBI has cleared the fog on ‘special provisioning’ of loans which are under moratorium — a clarification that has come as a relief to many banks. In a recent conversation with bank CEOs, senior regulatory officials have spelt out that provisioning should be considered only for loans where principal or interest payments are overdue between 61 and 90 days as on March 1, 2020. Such loans are categorised as SMA2 — or, special mention accounts (SMA) -2.

ICAI: Advisory for Statutory Bank Branch Auditors w.r.t. Specific Considerations while conducting Distance Audit / Remote Audit / Online Audit of Bank Branch under current Covid-19 situation. https://resource.cdn.icai.org/59391aasb48345.pdf

ICAI invites applications from eligible members of the Institute having a flair for academic activities including evaluation of answer books and willing to undertake confidential assignments as a dedicated examiner, for empanelment as an examiner of the Chartered Accountants Examinations. http://examinerspanel.icaiexam.icai.org

Application for empanelment as Examiner can be submitted online at: http://examinerspanel.icaiexam.icai.org


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