QBiz: Mistry Shuns Top Posts at Tata; Tea Exports to Iran May Dip
Top business news of the day on The Quint.
1. Cyrus Mistry Shuns Top Posts at Tata Companies, Seeks Board Seat
Ousted Tata Sons Ltd chairman Cyrus Mistry on Sunday said he will not seek to return to the post despite his victory in an appeals court, likely ending protracted uncertainty over the conglomerate’s leadership trajectory.
In a statement issued a fortnight after the National Company Law Appellate Tribunal (NCLAT) reinstated him, Mistry said he would not seek executive chairmanship of the group holding company Tata Sons Ltd, nor directorship of three group companies.
2. DHFL Gets Creditors’ Nod to Resume Lending Operations
The committee of creditors (CoC) to Dewan Housing Finance Corp Ltd (DHFL) has approved a plan under which the mortgage lender will resume advancing home loans beginning with Rs 500 crore a month to arrest the decline in its loan book.
A document from the central bank-appointed administrator showed DHFL is recovering Rs 1,700-1,800 crore from past loans every month and, after setting aside money for securitization payments and operational expenses, it can restart disbursements of Rs 500 crore per month. The company has not disbursed loans in more than six months, due to a liquidity crunch that also led to a series of defaults in repaying debt.
3. CBDT Notifies ITR-1 and ITR-4 for AY 2020-21
In a first, Central Board of Direct Taxes (CBDT) has notified income tax return (ITR) forms for the financial year (FY) well in advance before end of it.
The ongoing FY 2019-20 will end on 31 March 2020, and taxpayers will need forms to assess and file the return in the assessment year (AY) 2020-21.
As of now CBDT has issued two forms—ITR-1 and ITR-4— for the AY 2020-21.
4. Govt May Ask Unlisted Firms to Submit Financial Statements Every Quarter
Unlisted companies might soon be required to submit their financial statements to the government on a quarterly or half-yearly basis, according to an official.
There are more than 1.1 million unlisted companies that are active in the country and the proposal also assumes significance against the backdrop of instances of financial woes at some large unlisted entities.
5. Six of India's Top 10 Firms Lose Rs 26,624 Cr in M-Cap; ICICI Bleeds Most
Six of India’s 10 most-valued companies together lost Rs 26,624.10 crore in market valuation last week, with ICICI Bank hurting the most.
Reliance Industries Limited (RIL), HDFC Bank, Hindustan Unilever Limited (HUL), Kotak Mahindra Bank and State Bank of India were other blue chips that saw a drop in their market capitalisation (m-cap) for the week ended Friday, while Tata Consultancy Services, HDFC, Infosys and ITC ended in the green.
6. DSP's Gamble to Go Long on Bonds Pays Off After RBI's Operation Twist
An asset manager’s decision to load up on long India sovereign bonds at a time when the government’s record debt sales were scaring others, is turning prescient.
DSP Investment Managers, which manages about Rs 77,600 crore ($10.8 billion), had been betting since August that longer yields would decline.
The strategy paid off when the Reserve Bank of India surprised investors by embracing a US Fed-style Operation Twist, buying long-end debt and selling short-end bonds.
7. CBIC Asks DGFT to Tighten Accreditation Process of Star Exporters for Curbing Tax Fraud
The Central Board of Indirect Taxes and Customs (CBIC) has asked the Directorate General of Foreign Trade to make the accreditation system for star exporters more robust to curb tax fraud.
"Since an exporter enjoying 'star' status is allowed many facilities, including reduced customs inspections, it makes for a strong case for DGFT to continuously (or annually) seek a compliance and verification report from other regulators or obligate the exporters to produce statutory records of compliance, including certifications from the banks of No NPAs," the CBIC said in a letter to the DGFT earlier this month.
8. Heightened US-Iran Tensions May Hit Tea Exports to Tehran
The tea industry has expressed concern over the possibility of exports to Iran taking a hit in the wake of spiralling tensions between the US and the Persian country.
Iran's Major General Qasem Soleimani was killed in a US drone attack on Friday, which ratcheted up acrimony between the arch-enemies and sparked fears of a new war in the Middle East.
"There will be an impact if there is a conflict between the US and Iran. Orthodox tea exports will suffer," Tea Board Chairman PK Bezbaruah told PTI.
9. UCO Bank Optimistic of Coming Out of PCA in FY'20
UCO Bank is on track to come out of RBI's Prompt Corrective Action (PCA) framework in the current fiscal, a top offical of the lender has said.
The bank is hopeful of bringing down the net NPA below 6 per cent in 2019-20 from 7.34 per cent as on Sepetmber 2019, Managing Director and CEO A K Goel said.
The framework is used to put lenders with high non- performing assets, weak return on assets and low capital adequacy ratio on a short leash.
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