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highlights
Govt seeks stay on Rs 20,000cr Vodafone tax arbitration case
The Centre has moved the Supreme Court, seeking a stay on the Rs 20,000 crore Vodafone tax arbitration case, reports CNBC-TV18. The apex court will hear the government plea on December 12. The government has told the court that Vodafone cannot be allowed to invoke arbitration in the same case in two forums.
Chasing stiff rev targets, sudden surge seen in I-T prosecution notices
As tax officials chase to meet stiff revenue targets amid sluggish growth, there is a sudden surge in prosecution notices slapped by the Income Tax (I-T) Department, reports The Economic Times. Till now prosecution provision was invoked sparingly and primarily on wilful tax evaders. Now, prosecution proceedings are being initiated for not filing tax returns or for short or even delayed remittance of tax deducted at source (TDS) by business entities.
"A list of 8,000-odd non-filers (of tax return) with a past record of earnings has been compiled (by the tax department). Many in that list have been issued prosecution notices. While this may come across as somewhat harsh, notices have also gone to companies which even after deducting TDS (from salaries, rent, or other heads) have failed to submit it to the government," a senior tax official in Mumbai, which accounts for the highest income tax collection, said.
Passenger vehicle sales rise 14.29% in Nov; car sales up 4.49%
Domestic passenger vehicle sales rose 14.29% to 2,75,417 units in November from 2,40,983 units in the same month last year. Domestic car sales were up 4.49% to 1,81,395 units as against 1,73,607 units in November last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Motorcycle sales last month rose 23.25% to 9,59,122 units as against 7,78,173 units a year earlier.
Total two-wheeler sales in November rose 23.49% to 15,35,277 units compared to 12,43,246 units in the year-ago month. Sales of commercial vehicles were up 50.43% to 68,846 units in November, SIAM said. Vehicle sales across categories registered a rise of 24.05% to 19,39,671 units from 15,63,658 units in November 2016, it added.
Public sector banks gear up to list MF arms, says report
After offloading stakes in insurance companies, cash-strapped public sector banks are gearing up to raise money by diluting their stakes in mutual funds through initial public offerings, reports Hindu Business Line. The government, which announced a Rs 2.11 lakh crore bailout for NPA-hit state-run banks, had instructed them to mop up capital by selling stakes in non-core assets before seeking financial support.
The seven public sector bank-sponsored mutual funds include Baroda Pioneer Mutual Fund, BOI Axa Mutual Fund, Canara Robeco Mutual Fund, IDBI Mutual Fund, SBI Mutual Fund, Union Mutual Fund and Principal (Punjab National Bank) Mutual Fund. Some of these mutual funds have already sounded out investment banks to ascertain the market potential and prepare the groundwork for an IPO, sources said.
Led by SBI Mutual Fund, the assets under management (AUM) of these seven mutual funds were up 11% in the September quarter at Rs 2.34 lakh crore against Rs 2.10 lakh crore in the June quarter. The average AUM of the mutual fund industry was up 7% at Rs 20.94 lakh crore (Rs 19.51 lakh crore) during the same period.
Axis Bank, Bank of Baroda sell part of Essar Steel loan at discount, says report
Axis Bank and Bank of Baroda disposed of a part of their foreign currency loans in Essar Steel, selling the debt at 30-40% discounts with a foreign hedge fund acquiring it, sources told The Economic Times. Essar Steel has Rs 49,000 crore of loans outstanding, including external commercial borrowings of Rs 6,000 crore. The loans that Axis Bank and Bank of Baroda sold were part of the external commercial borrowings (ECBs).
The two banks sold the debt to Deutsche Bank, which subsequently transferred it to a hedge fund owned by Davidson Kempner, sources said. The buyer will have a say in the bankruptcy proceedings of the metal maker, they added. Axis Bank was the first to sell, bankers said. It sold $90 million (approximately Rs 580 crore) at a little less than 60 cents to a dollar, they added.
State-run Bank of Baroda got a better deal at 71 cents to a dollar, but the amount of loan it sold wasn’t immediately known. Lenders, including IDBI Bank and ICICI Bank, are also contemplating to exit Essar Steel’s foreign currency loans and are evaluating a few proposals, sources said. HDFC Bank, ICICI Bank and Indian Overseas Bank had sold their domestic loans to Essar Steel to Edelweiss Asset Reconstruction Company.
Foreign airlines may be allowed to bid for Air India, says report
India is likely to change rules to allow foreign airlines to bid for Air India as long as they have a local joint venture with an Indian partner as the government seeks to increase the number of suitors for the debt-laden national carrier. “Foreign airlines will be allowed to bid as per the current policy that’s applicable on all domestic airlines. That much we can confirm,” an official told Mint. Existing rules allow foreign airlines to own as much as 49% in an Indian airline, with the exception of Air India.
With the change in rules, the government expects to make the sale of Air India, which has drawn interest from companies including the Tata group and InterGlobe Aviation (IndiGo), more competitive. The Civil Aviation Ministry has conveyed the proposal to a Group of Ministers looking into Air India’s stake sale in a recent meeting. The panel led by finance minister Arun Jaitley also includes Aviation Minister Ashok Gajapathi Raju, Transport Minister Nitin Gadkari, Railways Minister Piyush Goyal and Commerce Minister Suresh Prabhu.
The government will have to make several changes to existing rules before foreign airlines can bid for the national carrier. First, the Department of Industrial Policy and Promotion’s Press Note No. 6 (2012 Series) has to be amended to remove a clause that bars foreign investment in Air India. Second, international flying rights negotiated between two governments require respective airlines to have local effective control to avail of these rights. A change in control to a foreign airline will invalidate these rights.
To ensure Air India does not face any issues, the government will retain a clause that says Air India cannot be 100% foreign-owned (even though foreign entities can own 100% of a private Indian airline, stakes of foreign airlines are capped at 49%). This, the Aviation Ministry believes, will allow “effective control” to be retained in India as the majority ownership will be with an Indian entity.
Firms, lenders ask RBI to extend Dec 13 insolvency deadline, says report
With time running out for a resolution of the second list of non-performing assets (NPAs) on the Reserve Bank of India (RBI) list, lenders and corporate bodies have approached the central bank for extending the December 13 deadline, reports Business Standard. If debt resolution is not finalised by December 13 for the 28 companies on the list, insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will be initiated.
The debt exposure of these companies would be more than Rs 1 lakh crore. “No major progress has been made so far in debt resolution for the 28 accounts. Hence, some banks have sought an extension of the deadline,” said the head of a public sector bank. “If the deadline is not extended, most of the cases will go to the National Company Law Tribunal (NCLT). The kind of deadline being put on the table is not acceptable to the banks. So, decision-making is very difficult at this stage,” he said.
Suzuki’s electric vehicle tie-ups to aid Maruti Suzuki India, sans risks
Suzuki Motor Corporation is trying to insulate its Indian unit from the risks involved in developing electric vehicles even as the outcome of such efforts will benefit Maruti Suzuki India directly, reports Mint. Driven by a policy push in India and a desire to keep its market share intact, Suzuki has formed two crucial partnerships—one where it will produce lithium ion batteries in collaboration with Denso Corporation and Toshiba Corporation; and another with the world’s largest automaker Toyota Motor Corporation to introduce electric vehicles in India by 2020.
In both cases, while there is no direct involvement of Maruti in any manner, the fact that the Indian company does not have any equity participation means that it is unlikely to face any risk even if India’s electric vehicle drive fails to take off. The role of Maruti in these partnerships may best be limited to that of a procurer of lithium ion battery packs (from the tripartite joint venture) and of electric vehicle platforms from the Toyota-Suzuki partnership. It will, of course, sell those to Indian customers if the electric vehicle market takes off in the country.
“The whole tie-up between Suzuki and Toyota is specifically for the Indian market. Hence, it is solely going to benefit Maruti. The Gujarat plant is also operated (and owned) by Suzuki but it has benefitted only Maruti,” RC Bhargava, Chairman of Maruti Suzuki, said.
FPIs net outflow from equities at Rs 4,000cr in Dec so far
Foreign investors have pulled out more than Rs 4,000 crore from the country's stock markets this month so far, mainly due to rising crude prices and widening fiscal deficit. The outflow comes following an eight month high inflow of Rs 19,728 crore in November, mainly due to the government's plan to recapitalise PSU banks and surge in India's ranking in the World Bank's ease of doing business.
This was the highest net investment by FPIs since March, when they had poured in Rs 30,906 crore in the equity market. According to the depositories’ data, Foreign Portfolio Investors (FPIs) withdrew a net amount of Rs 4,089 crore ($634 million) from equities till December 8. However, such investors had put in over Rs 2,200 crore in the debt markets during the period under review.
"Rising crude prices and widening fiscal deficit prompted FPIs to adopt a cautious stance for now. As per the recently released data, India's fiscal deficit rose to 96.1% of the full-year target by the end of October. The fiscal deficit data, which was released on November 30 overshadowed a resounding GDP growth of 6.3% for September quarter, which was also released on the same day. In addition to that, appreciating rupee and rising domestic markets too provide a good profit booking opportunity to FPIs, especially before Christmas and new year," Morningstar India's senior analyst manager (research) Himanshu Srivastava told PTI.
Even if there are net outflows in December, we will end the year with higher net inflows from FPIs compared to the last two years, he added. Overall, FPIs have invested over Rs 53,000 crore in equities so far in 2017 and another Rs 1.5 lakh crore in debt markets.
MFs log Rs 1.26 lakh cr inflow in Nov, AUM at a record Rs 21.8 lakh cr
Investors have pumped in Rs 1.26 lakh crore into mutual funds in November, driving industry assets under management to an all-time high of Rs 21.8 lakh crore. With this latest inflow, total infusion in MF schemes reached Rs 3.8 lakh crore in the first eight months (April-November) of the current fiscal, latest data with Association of Mutual Funds in India (Amfi) showed.
According to the data, investors have poured in a net of Rs 1.26 lakh crore in MF schemes last month as compared to an investment of over Rs 51,000 crore in October. The latest inflow has been mainly driven by contributions from equity, equity linked saving schemes and liquid funds.
Individually, liquid funds or money market category - investments in cash assets such as Treasury Bills, certificates of deposit and commercial paper for shorter horizon - witnessed an inflow of over 77,000 crore. Besides, equity and equity linked schemes attracted over Rs 20,300 crore. In addition, more than Rs 7,600 crore was invested in balanced funds. Further, over Rs 9,300 crore was put in the debt funds. In contrast, gold ETFs continued to see net outflow of Rs 89 crore.
Here are the top headlines at 12 pm from Moneycontrol News' Anchal Pathak
Govt seeks stay on Rs 20,000cr Vodafone tax arbitration case
The Centre has moved the Supreme Court, seeking a stay on the Rs 20,000 crore Vodafone tax arbitration case, reports CNBC-TV18. The apex court will hear the government plea on December 12. The government has told the court that Vodafone cannot be allowed to invoke arbitration in the same case in two forums.
Chasing stiff rev targets, sudden surge seen in I-T prosecution notices
As tax officials chase to meet stiff revenue targets amid sluggish growth, there is a sudden surge in prosecution notices slapped by the Income Tax (I-T) Department, reports The Economic Times. Till now prosecution provision was invoked sparingly and primarily on wilful tax evaders. Now, prosecution proceedings are being initiated for not filing tax returns or for short or even delayed remittance of tax deducted at source (TDS) by business entities.
"A list of 8,000-odd non-filers (of tax return) with a past record of earnings has been compiled (by the tax department). Many in that list have been issued prosecution notices. While this may come across as somewhat harsh, notices have also gone to companies which even after deducting TDS (from salaries, rent, or other heads) have failed to submit it to the government," a senior tax official in Mumbai, which accounts for the highest income tax collection, said.
Suven Life Sciences gets product patents from India, US
Suven Life Sciences has secured a product patent each from India and the US for treatment of disorders associated with neurodegenerative diseases. These patents are valid through 2029 and 2033 respectively, the company said in a BSE filing.
"We are pleased by the grant of these patents to Suven for our pipeline of molecules in the CNS (central nervous
system) arena, which are being developed for cognitive disorders with high unmet medical need with a huge market potential globally," Suven Life CEO Venkat Jasti said.
Suven Life said the granted claims of the patents are being developed as therapeutic agents and useful in treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer's disease, Parkinson and Schizophrenia.
Rhizen receives USFDA fast track designation for cancer drug
Drug firm Alembic Pharmaceuticals said the US health regulator has granted fast track designation to its associate company Rhizen Pharmaceuticals SA's RP6530 (tenalisib), used in treatment of cancer. "The US Food & Drug Administration (USFDA) has granted Fast Track Designation for RP6530 (tenalisib)...for the treatment of patients with relapsed/refractory peripheral T-cell lymphoma (PTCL)," Alembic Pharmaceuticals said in a BSE filing. Fast track designation is awarded to drugs that treat a serious condition and fill an unmet medical need, it added.
Unitech stock jumps 20% as NCLT allows govt to appoint 10 nominees
Shares of Unitech surged as much as 20% in trade today after the NCLT authorised the government to appoint its 10 nominees on the board of the realty firm. On December 8, the National Company Law Tribunal (NCLT) suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds, while authorising the government to appoint its 10 nominees on the board. Today's rally is the fourth consecutive one for the stock. On December 8, the Unitech scrip had jumped 20%.
In a rare move, the government approached the NCLT to take over the management with a view to protecting the interest of nearly 20,000 home buyers. The tribunal's order came after the government filed a petition arguing that Unitech was a fit case for winding up but considering the interest of thousands of home buyers and small depositors, it wanted to take over company management. The company has over Rs 6,000 crore debt with more than 16,000 undelivered units from a total of nearly 70 projects.
Infosys severance pay plea: Matter of legality for Sebi, not emotions, says former CFO
Former Infosys Chief Financial Officer V Balakrishnan said it was not a matter of whistleblower's emotions, but of legality for Sebi to decide on denying company's consent plea in connection with former-CFO Rajiv Bansal's severance payment case, reports PTI. "The whistleblower has said whatever he wants to say as per his viewpoint. These are legal issues decided based on merits and not individual's emotions.. What Securities and Exchange Board of India (Sebi) as a regulator thinks and decides is all that matters," Balakrishnan said.
Earlier this year, a whistleblower had written to the market regulator over alleged lapses in the Panaya deal and Bansal's severance pay. The letter had stated that the package was decided by the then CEO Vishal Sikka and then general counsel David Kennedy. The whistle-blower had asked why Infosys was reluctant in disclosing answers surrounding the "hush money."
The letter has brought allegations of poor corporate governance to the fore again after Infosys filed an application for settlement. This has spurred Balakrishnan and another former CFO TV Mohandas Pai to launch an attack against the company, whose board is now led by co-founder Nandan Nilekani. Balakrishnan has demanded the resignation of board members, Roopa Kudva and Ravi Venkatesan in the matter.
On Sunday, board member Kiran Mazumdar-Shaw had exchanged barbs with Pai on twitter, saying, "The matters were reinvestigated (a)n(d) no wrong doings were found by new Chairman.. Let's bring this to a closure and move on.. It helps no one."
SC dismisses plea against bail to trustees of Ryan International Group
The Supreme Court has dismissed a plea challenging the anticipatory bail granted to three trustees of the Ryan International Group in connection with the killing of a student in the school premises, reports PTI. A bench of Justices RK Agrawal and AM Sapre said the "petition is dismissed."
The court had earlier reserved the order on the plea of the father of 7-year-old boy, who was found dead in Ryan International School in Gurgaon, challenging the anticipatory bail granted to the trustees of the group. Pradhuman, a Class II student, was found with his throat slit in the school washroom in Gurgaon on September 8.
Passenger vehicle sales rise 14.29% in Nov; car sales up 4.49%
Domestic passenger vehicle sales rose 14.29% to 2,75,417 units in November from 2,40,983 units in the same month last year. Domestic car sales were up 4.49% to 1,81,395 units as against 1,73,607 units in November last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Motorcycle sales last month rose 23.25% to 9,59,122 units as against 7,78,173 units a year earlier.
Total two-wheeler sales in November rose 23.49% to 15,35,277 units compared to 12,43,246 units in the year-ago month. Sales of commercial vehicles were up 50.43% to 68,846 units in November, SIAM said. Vehicle sales across categories registered a rise of 24.05% to 19,39,671 units from 15,63,658 units in November 2016, it added.
Biryani, vanilla ice cream for Dilip Kumar on 95th birthday
As legendary actor Dilip Kumar turns 95 today, his wife Saira Banu plans to treat him to his favourite delicacies - biryani and vanilla ice cream – on the occasion, reports PTI. Banu says she is not planning to throw a birthday party this time as Kumar is still recovering from pneumonia. "He loves biryani and that will be made for him but I will give him only little as he is unwell. He is also fond of vanilla ice cream, I will ask the doctors if we can give him a little bit of that too. Then we will have a birthday cake," Banu said in an interview.
"We will not have a grand birthday party as he is not keeping well. The immune system is not so good after he was down with pneumonia. I cannot let him exert now," she added. Banu also plans to buy Kumar a new pair of shirt and trousers. "Dilip Sahab is fond of good and simple clothes. He likes cotton shirts and trousers and matching shoes and socks. He has a huge collection of shoes, which he has from world over. Every year I order things of his choice. He is not a materialistic man. He doesn't like expensive gifts. My one consistent gift to him every year is my love, which keeps intensifying," she said.
Public sector banks gear up to list MF arms, says report
After offloading stakes in insurance companies, cash-strapped public sector banks are gearing up to raise money by diluting their stakes in mutual funds through initial public offerings, reports Hindu Business Line. The government, which announced a Rs 2.11 lakh crore bailout for NPA-hit state-run banks, had instructed them to mop up capital by selling stakes in non-core assets before seeking financial support.
The seven public sector bank-sponsored mutual funds include Baroda Pioneer Mutual Fund, BOI Axa Mutual Fund, Canara Robeco Mutual Fund, IDBI Mutual Fund, SBI Mutual Fund, Union Mutual Fund and Principal (Punjab National Bank) Mutual Fund. Some of these mutual funds have already sounded out investment banks to ascertain the market potential and prepare the groundwork for an IPO, sources said.
Led by SBI Mutual Fund, the assets under management (AUM) of these seven mutual funds were up 11% in the September quarter at Rs 2.34 lakh crore against Rs 2.10 lakh crore in the June quarter. The average AUM of the mutual fund industry was up 7% at Rs 20.94 lakh crore (Rs 19.51 lakh crore) during the same period.
Three militants killed in north Kashmir encounter
Three militants were killed in an encounter with security forces in Handwara area of north Kashmir, police told PTI. Director General of Police (DGP) SP Vaid said the slain militants were ‘apparently Pakistanis’. Security forces launched a cordon and search operation in the early hours in Unisoo village of Handwara following specific intelligence inputs about the presence of militants in the area, a police official said.
He said the search operation turned into an encounter as the hiding militants fired upon the forces conducting the searches. During the gunfight, three militants were killed, the official said. He said their bodies along with three weapons have been recovered from the encounter site.
Stockholm: From left, Nobel Laureate in Physiology or Medicine Jeffrey Hall, Nobel Laureate in Physiology or Medicine Michael Robash, Nobel Laureate in Physiology or Medicine Michael Young, Nobel Laureate in Literature Kazuo Ishiguro and Nobel Laureate in Economics Richard Thaler attend the 2017 Nobel prize award ceremony at the Concert house in Stockholm on Sunday. AP
Bitcoin futures surge past $18,000
The craze for cryptocurrencies entered a new chapter on Monday as bitcoin futures rocketed by one-fifth of their value at a closely-watched launch, reports Reuters. The most-traded contract on the Chicago-based CBOE Global Markets exchange XBTc1 opened at $15,460 in New York on Sunday evening, before leaping to a high of $18,700 - a gain of 21%. They were last quoted at $17,550 a premium of more than $1,600 to the price on Gemini Exchange.
The futures are cash-settled contracts based on the auction price of bitcoin in dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss. The cryptocurrency has boasted a gravity-defying 15-fold gain since the start of the year, attracting institutional interest and no small amount of question marks.
Here are the top headlines at 10 am from Moneycontrol News' Anchal Pathak
Axis Bank, Bank of Baroda sell part of Essar Steel loan at discount, says report
Axis Bank and Bank of Baroda disposed of a part of their foreign currency loans in Essar Steel, selling the debt at 30-40% discounts with a foreign hedge fund acquiring it, sources told The Economic Times. Essar Steel has Rs 49,000 crore of loans outstanding, including external commercial borrowings of Rs 6,000 crore. The loans that Axis Bank and Bank of Baroda sold were part of the external commercial borrowings (ECBs).
The two banks sold the debt to Deutsche Bank, which subsequently transferred it to a hedge fund owned by Davidson Kempner, sources said. The buyer will have a say in the bankruptcy proceedings of the metal maker, they added. Axis Bank was the first to sell, bankers said. It sold $90 million (approximately Rs 580 crore) at a little less than 60 cents to a dollar, they added.
State-run Bank of Baroda got a better deal at 71 cents to a dollar, but the amount of loan it sold wasn’t immediately known. Lenders, including IDBI Bank and ICICI Bank, are also contemplating to exit Essar Steel’s foreign currency loans and are evaluating a few proposals, sources said. HDFC Bank, ICICI Bank and Indian Overseas Bank had sold their domestic loans to Essar Steel to Edelweiss Asset Reconstruction Company.
Prime Minister Narendra Modi and Congress Vice-President Rahul Gandhi’s roadshows in Ahmedabad have been denied permission by the police, reports NDTV. The police have cited law and order and public inconvenience as reasons for denial of permission.
South Korea imposes new sanctions on North Korea
South Korea says it has added several North Korean groups and individuals to its sanctions list as part of efforts to cut off funding for the North weapons programs, reports PTI. South Korea's government says the sanctions on 20 North Korean groups and 12 individuals took effect from today. Seoul is among the first to respond to North Korea's November 29 missile launch with fresh sanctions.
The Max India stock will be in focus today after the Delhi government on Friday cancelled the licence of Max Hospital, Shalimar Bagh post market hours. Max India is the holding company for Max Healthcare. The Delhi government’s decision came nearly a week after one of the premature twins born on November 30 and declared dead was found alive by the parents while being taken for last rites. (Photo courtesy: PTI; A view of Max Hospital, Shalimar Bagh)
Foreign airlines may be allowed to bid for Air India, says report
India is likely to change rules to allow foreign airlines to bid for Air India as long as they have a local joint venture with an Indian partner as the government seeks to increase the number of suitors for the debt-laden national carrier. “Foreign airlines will be allowed to bid as per the current policy that’s applicable on all domestic airlines. That much we can confirm,” an official told Mint. Existing rules allow foreign airlines to own as much as 49% in an Indian airline, with the exception of Air India.
With the change in rules, the government expects to make the sale of Air India, which has drawn interest from companies including the Tata group and InterGlobe Aviation (IndiGo), more competitive. The Civil Aviation Ministry has conveyed the proposal to a Group of Ministers looking into Air India’s stake sale in a recent meeting. The panel led by finance minister Arun Jaitley also includes Aviation Minister Ashok Gajapathi Raju, Transport Minister Nitin Gadkari, Railways Minister Piyush Goyal and Commerce Minister Suresh Prabhu.
The government will have to make several changes to existing rules before foreign airlines can bid for the national carrier. First, the Department of Industrial Policy and Promotion’s Press Note No. 6 (2012 Series) has to be amended to remove a clause that bars foreign investment in Air India. Second, international flying rights negotiated between two governments require respective airlines to have local effective control to avail of these rights. A change in control to a foreign airline will invalidate these rights.
To ensure Air India does not face any issues, the government will retain a clause that says Air India cannot be 100% foreign-owned (even though foreign entities can own 100% of a private Indian airline, stakes of foreign airlines are capped at 49%). This, the Aviation Ministry believes, will allow “effective control” to be retained in India as the majority ownership will be with an Indian entity.
Firms, lenders ask RBI to extend Dec 13 insolvency deadline, says report
With time running out for a resolution of the second list of non-performing assets (NPAs) on the Reserve Bank of India (RBI) list, lenders and corporate bodies have approached the central bank for extending the December 13 deadline, reports Business Standard. If debt resolution is not finalised by December 13 for the 28 companies on the list, insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will be initiated.
The debt exposure of these companies would be more than Rs 1 lakh crore. “No major progress has been made so far in debt resolution for the 28 accounts. Hence, some banks have sought an extension of the deadline,” said the head of a public sector bank. “If the deadline is not extended, most of the cases will go to the National Company Law Tribunal (NCLT). The kind of deadline being put on the table is not acceptable to the banks. So, decision-making is very difficult at this stage,” he said.
Suzuki’s electric vehicle tie-ups to aid Maruti Suzuki India, sans risks
Suzuki Motor Corporation is trying to insulate its Indian unit from the risks involved in developing electric vehicles even as the outcome of such efforts will benefit Maruti Suzuki India directly, reports Mint. Driven by a policy push in India and a desire to keep its market share intact, Suzuki has formed two crucial partnerships—one where it will produce lithium ion batteries in collaboration with Denso Corporation and Toshiba Corporation; and another with the world’s largest automaker Toyota Motor Corporation to introduce electric vehicles in India by 2020.
In both cases, while there is no direct involvement of Maruti in any manner, the fact that the Indian company does not have any equity participation means that it is unlikely to face any risk even if India’s electric vehicle drive fails to take off. The role of Maruti in these partnerships may best be limited to that of a procurer of lithium ion battery packs (from the tripartite joint venture) and of electric vehicle platforms from the Toyota-Suzuki partnership. It will, of course, sell those to Indian customers if the electric vehicle market takes off in the country.
“The whole tie-up between Suzuki and Toyota is specifically for the Indian market. Hence, it is solely going to benefit Maruti. The Gujarat plant is also operated (and owned) by Suzuki but it has benefitted only Maruti,” RC Bhargava, Chairman of Maruti Suzuki, said.
Earthquake of 4.5 magnitude hits Jammu & Kashmir
A medium intensity earthquake measuring 4.5 on the Richter Scale hit Jammu & Kashmir early on Monday, the IMD said. According to the National Seismology Centre of the India Meteorological Department (IMD), the earthquake occurred at 4:28 am at a depth of 33 km, reports PTI. There were no immediate reports of loss of life or property.
Japan big manufacturers' mood improves in Oct-Dec
Large Japanese manufacturers turned more optimistic about economic conditions in the October-December quarter, a government survey showed on Monday, in another upbeat sign for an economy on a record run of growth. The business survey index (BSI) of sentiment at large manufacturers stood at plus 9.7, up from plus 9.4 in July-September, according to the joint survey by the Ministry of Finance and the Economic and Social Research Institute, an arm of the Cabinet Office. The mood was brightened by a weaker yen and a 12% jump in the Nikkei stock average since the previous survey period, while sales and profits were up led by auto manufacturers and makers of electronic parts for smartphones, reports Reuters.
Durham: A snowman and dog on a bench in Worcester, England on Sunday as heavy snow falls across parts of Britain. Snow is causing travel disruptions across central England and northern Wales, grounding flights, shutting down roads and causing traffic accidents. AP