NDTV did not disclose Rs450 crore tax notice to exchanges and argued that the matter was “sub-judice” and that it has received a stay. Was this the reason for the resignation of its compliance officer?
Prannoy Roy-led New Delhi Television Ltd (NDTV), which did not disclose the Rs450 crore demand notice it received from the Income Tax department to bourses on Monday said, its company secretary and compliance officer has resigned.
In a regulatory filing, NDTV said, "Anoop Singh Juneja has resigned from the services of the Company. The Company has accepted his resignation and relieved him of his responsibilities w.e.f. 31 May 2014."
As pointed out by Moneylife last week, the company argued with BSE and National Stock Exchange (NSE), that the demand notice was "without any basis or justification and contrary to provisions of Income Tax Act, 1961 and had resulted only due to erroneous and incorrect view taken by the tax department". Hence, it saw it fit not to disclose anything about it.
Although all listed companies are mandated to provide every piece of information relating with them through regulatory filings, NDTV had said, "it was felt that the disclosure of these events in isolation, without any reference to the steps proposed to be taken by the Company, was not desirable. In the event of ongoing proceedings before Income Tax Appellate Tribunal (ITAT), where a stay has been granted by ITAT, the claim made by the tax department cannot be deemed as an enforceable tax demand against NDTV due and payable by it. The demand has resulted only due to erroneous and incorrect view taken by the tax department."
As per the listing agreement, companies are required to submit documents like annual reports, shareholding pattern data, quarterly and full-year financial results, as also corporate governance compliance reports within stipulated time periods.
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During May, inflation was a mixed bag, with input prices easing and output prices rising, therefore RBI is likely to retain its hawkish stance on Tuesday, but may pause for more clarity on inflation risks, says HSBC
Led by higher order flows from both domestic and external sources, the HSBC India's manufacturing Purchasing Managers Index (PMI) improved marginally in May at 51.4 points compared with 51.3 in April.
However, output was unchanged at 51.7 points due to power shortages that forced firms to accumulate backlogs at a faster pace.
New export orders also bounced in May (53.7 vs. 53.0 in April), which also helped employment pick up slightly (50.6 vs. 50.2 in April) in light of strengthening order flows, HSBC said in a release.
In May, the quantity of purchases (51.8 vs. 53.0 in April) was weaker, despite the improvement in order flows. Meanwhile, stocks of purchases (49.9 vs. 52.1 in April) were drawn down and stocks of finished goods (51.0 vs. 52.7 in April) accumulated at a slower pace.
“Inflation was a mixed bag, with input prices easing and output prices rising. The outlook for inflation is complicated by risks from El Nino and possible pro-growth policies from the new government. The Reserve Bank of India (RBI) is likely to retain its hawkish stance on Tuesday, but may pause for more clarity on inflation risks,” HSBC said in a statement.
Overall, retail level inflation is far too high for comfort and the outlook remains challenging. Potentially weak rainfall due to El Nino could push up food inflation. Moreover, if the government decides to loosen its purse strings and follow a pro-growth strategy, it could fan inflation further. The RBI, therefore, is likely to remain on hold in June, waiting for more clarity.
HSBC further said that manufacturing momentum may be more or less stable, but it is stuck at a relatively depressed level. Incrementally, demand may be strengthening from both external and domestic sources. However, capacity constraints in the economy including from energy shortages are hampering growth.
With last month's election result, momentum should tick up in the coming months as previously pent-up consumer and investment spending starts flowing again. Still, risks linger, including potentially poor rainfall in the coming months.
Encouragingly, input price pressures eased further, but with output prices still rising the RBI will remain vigilant, the release added.