1. Infosys Woes Reach US: SEC Probe, Class Action Suit
Infosys Ltd’s regulatory problems mounted after a US law firm filed a suit against the company on behalf of American investors, seeking damages for manipulating earnings, even as the US securities regulator started a probe into a complaint by anonymous whistleblowers.
New York-based Rosen Law Firm, which filed the class action suit against Infosys on Wednesday, said it has the backing of several hundred American depositary share (ADS) holders and named chief executive Salil Parekh and former chief financial officer M.D. Ranganath as respondents, along with the company.
(Source: Mint)
2. India Vaults to 63rd in Ease of Doing Business Rankings
India climbed 14 rungs in the World Bank’s latest ease of doing business rankings to stand at 63 among 190 countries, becoming one of the top 10 most improved countries for the third consecutive time.
The sharp rise in India’s ranking underscores the reformist credentials of the Narendra Modi-led National Democratic Alliance government and may help the country attract multinational companies looking for alternative investment destinations to China amid Beijing’s ongoing trade war with the US.
(Source: Mint)
3. SC Ruling on AGR: Telcos Will Have to Pay Rs 1.3 Lakh Crore
Incumbent telecom operators, including Airtel and Vodafone Idea, will have to cough up nearly Rs 1.3 lakh crore after the Supreme Court dismissed their plea seeking a review of what constituted adjusted gross revenue (AGR).
The biggest impact will be on Vodafone Idea, which will have to pay dues of around Rs 40,000 crore while Airtel will have to pay Rs 35,000 crore. There will be not be any significant impact on Reliance Jio.
It is not clear how the balance Rs 65,000 crore will be recovered by the Department of Telecom as most other operators, including Aircel, Tata Teleservices and Reliance Communications, have shut shop.
(Source: Hindu BusinessLine)
4. DHFL Lenders Consider Liquidating Firm's Assets to Recover Their Dues
With speculation growing on the quality of assets at beleaguered Dewan Housing Finance Corporation (DHFL), its lenders are looking at alternatives to recover their dues.
“They have turned cautious with respect to converting their outstanding debt to equity in DHFL,” said a person in the know.
It is learnt the lenders are, therefore, working on a Plan B. They are discussing liquidating or buying out the assets of DHFL in lieu of their loan dues.
Banks have total exposure of Rs 47,000 crore, including non-convertible debentures (NCDs). Other secured lenders such as mutual funds and retail NCD holders have an exposure of about Rs 17,000 crore. DHFL has assets worth Rs 90,000 crore and about half its loan book comprises retail (meaning to individuals) home loans.
(Source: Business Standard)
5. Maruti’s Profit Plunges to Lowest in 15 Quarters
Maruti Suzuki India Ltd posted a 39 percent year-on-year (y-o-y) drop in net profit to Rs 1,359 crore for the September quarter, the lowest profit in 15 quarters.
The decline was, however, softer than the 50-60 percent drop forecast by analysts. India’s largest carmaker had a year-earlier net profit of Rs 2,240 crore.
This could be because of reduced tax expenditure and higher non-operating income. Maruti Suzuki’s total tax expenses in Q2FY20 fell 78% from the year-earlier to Rs 213.4 crore.
“This is the result of the corporate tax cuts announced by the finance minister last month wherein Maruti Suzuki has adopted the new tax regime in Q2," said Mitul Shah, auto analyst, Reliance Securities.
(Source: Mint)
6. Govt Plans to Take InvIT Route for BSNL Asset Monetisation Programme
To make the asset monetisation programme of BSNL a success, the government plans to take the recently expanded Infrastructure Investment Trust (InvIT) route. This will be the first major use of the route by a public sector company and it follows last week’s announcement by the Reserve Bank of India allowing banks to invest in InvITs.
Announcing the decision to merge MTNL with BSNL, telecom minister Ravi Shankar Prasad said that both companies would monetise their assets to raise the resources to retire debts, service the bonds and finance network upgradation, among others. He has pegged the total value of assets for monetisation at about Rs 38,000 crore, which is to be carried out over four years.
(Source: Business Standard)
7. Sitharaman Promises Further GST Simplification
Finance Minister Nirmala Sitharaman on Thursday said efforts will be made to further simplify Goods and Services Tax, and expressed hope that it will help in further improving India's ranking in the World Bank's ease of doing business index.
India has jumped 14 places to rank 63rd out of 190 countries in the World Bank's Doing Business 2020 report on account of significant improvement in resolving insolvency and obtaining construction permits.
The other parameters where the country has done well include trading across borders, registering property, paying taxes, getting electricity connections and starting a business.
(Source: PTI)
8. PSU Disinvestment: Centre Invites Proposal to Appoint General Advisers
Moving ahead with its disinvestment exercise, the Department of Investment and Public Asset Management (DIPAM) in the Ministry of Finance has started the process to restructure government’s equity in five Central Public Sector Enterprises (CPSEs).
However, the Department has decided to keep the names of these companies confidential. It has invited proposal to appoint General Advisor for restructuring of government’s equity in these five CPSEs. which will help in efficiently managing the government’s investments in equity.
(Source: Hindu BusinessLine)
9. Making Efforts to Resolve Differences Between ED, Corporate Affairs Ministry: FM
Finance Minister Nirmala Sitharaman on Thursday said she is making efforts to resolve differences between the Corporate Affairs Ministry and Enforcement Directorate over attachment of properties of a company under the insolvency resolution process.
The ministry and Enforcement Directorate have locked horns over the issue of attachment of property of Bhushan Power & Steel Ltd (BPSL).
While the ED is of the opinion that it can attach the property of BPSL under the Prevention of Money Laundering Act (PMLA), the corporate affairs ministry has been maintaining that ED can not do so as the company is under the insolvency proceedings.
The case is currently being heard by the National Company Law Appellate Tribunal (NCLAT).
(Source: PTI)
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