Companies & Sectors
Auto industry sees sustained recovery in May 2016
The automobile industry produced a total of 4,312,859 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April-May 2016 as against 3,875,828 in April-May 2015, registering a growth of 11.28% over the same month last year, according to a release from Society of Indian Automobile Manufacturers (SIAM).
 
The sales of passenger vehicles grew by 8.65% in April-May 2016 over the same period last year. Within the passenger vehicles segment, passenger cars, utility vehicles and vans grew by 0.50%, 39.37% and 6.69% respectively during April-May 2016 over the same period last year.
 
The overall commercial vehicles segment registered a growth of 17.12% in April-May 2016 as compared to the same period last year. medium & heavy commercial vehicles (M&HCVs) registered a growth at 21.49% and light commercial vehicles grew by 13.93% during April-May 2016 over the same period last year. 
 
Three Wheelers sales grew by 31.75% in April-May 2016 over the same month last year. passenger and goods carrier sales grew by 36.93% and 11.96% respectively in April-May 2016 over April-May 2015.
 
Two-wheelers sales registered a growth at 15.29% during April-May 2016 over April–May 2015. Within the two-wheelers segment, scooters, motorcycles and mopeds grew by 30.27%, 9.54% and 14.77% respectively in April-May 2016 over April-May 2015. 
 
In April-May 2016, overall automobile exports declined by 9.64%. While passenger vehicles and commercial vehicles registered a growth of 3.51% and 1.65%, three-wheelers and two-wheelers declined by 54.27% and 3.95% respectively in April-May 2016 over April-May 2015.
 

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SEBI orders Neesa Technologies to refund Rs5.96 crore of funds mobilised through issue of NCDs

Market regulator SEBI (Securities and Exchange Board of India) ordered Neesa Technologies and seven of its officials to refund the money which it had raised illegally from investors and also barred them from the securities market for four years. These entities had raised Rs5.96 crore through the issuance of non-convertible debentures (NCDs) in an illegal manner. They have been directed to refund the money along with interest of 15% per annum.

A SEBI probe found that the company had mobilised Rs5.96 crore from 341 investors during financial year 2013-14 under its offer of NCD and in doing so, failed to comply with the provisions of the Companies Act. The securities were issued by the firm to more than 50 people, which qualified it as a public issue that requires compulsory listing on recognised stock exchanges. The company and its directors were also required to file a prospectus, among other things, which they failed to do.

Market regulator SEBI, in exercise of the powers under section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(4), 11A and 11B thereof and regulation 28 of the SEBI (Issue and Listing of Debt Securities) Regulation, 2008 issued the following directions:

a.  Neesa Technologies Limited, and its directors, Arvind Gupta,  Yogesh  Ghisumal  Gemawat , Girishchandra Mukundram Baluni , Nimain  Charan  Biswal,  Sanjay Gupta , Kamlendra Joshi,  Manoj Singhal , jointly and severally,  shall forthwith refund the money collected by the Company through the issuance of Non-Convertible Debentures (which have been found to be issued in contravention of the public issue norms stipulated under the Companies Act, 1956 and the ILDS Regulations),  to the investors including the money collected from investors, till date, pending allotment of securities, if any, with an interest of 15% per annum compounded at half y early intervals, from the date when the repayments became due (in terms of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment.

b. The repayments to investors shall be effected only in cash through Bank Demand Draft or Pay Order.

c. The Company/its present management are permitted to sell the assets of the Company only for the sole purpose of making the refunds as directed above and deposit the proceeds in an Escrow Account opened with a nationalised Bank.

d.  The Company and its directors shall issue public notice, in all editions of two National  Dailies  (one  English  and  one  Hindi)  and  in  one  local  daily  with  wide circulation, detailing the  modalities for refund, including details  of  contact persons including  names,  addresses  and  contact  details,  within  fifteen  days  of  this  Order coming into effect.

e.  After completing the repayments, the Company  shall file a  certificate of such completion with SEBI,  within a period of three months from the date of this Order, from two independent peer reviewed Chartered Accountants who are in the panel of any  public  authority  or  public  institution.  For the purpose of this Order, a peer reviewed Chartered Accountant shall mean a Chartered Accountant, who has been categorised so by the Institute of Chartered Accountants of India.

f. Neesa Technologies Limited and its directors are also directed to provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.

g.  In case of  failure  of the company,  Neesa Technologies Limited and its directors in complying with the directions, SEBI, on the expiry of the three months period from the date of this order, -  shall recover such amounts in accordance with section 28A of the SEBI Act including such other provisions contained in securities laws;  may initiate appropriate action against the Company, its promoters/ directors and the persons/ officers who are in default, including adjudication proceedings against them, in accordance with law ;  would make a reference to the State Government/ Local Police to register a civil/ criminal case against the Company, its promoters, directors and its managers/ persons in-charge of the business and its schemes, for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds; and would also make a reference  to the Ministry of Corporate Affairs to initiate  appropriate action as deemed fit;  would also make a reference to the Ministry of Corporate Affairs to flag the names of noticee directors in its database so that information may be perused by RoC or any other regulatory authority.

h.  Neesa Technologies Limited  is directed not to, directly or indirectly, access the capital  market  by  issuing  prospectus,  offer  document  or  advertisement  soliciting money from the public and are further restrained and prohibited from buying, selling or  otherwise  dealing  in  the  securities  market,  directly  or  indirectly, from the date of this Order till the expiry of  four  years from  the date of completion of refunds to investors as directed above.

i. The directors are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner, with immediate effect.  They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. 

The above directions shall come into force with immediate effect and shall continue to be in force from the date of this Order till the expiry of four years from the date of completion of refunds to investors, as directed above.  The above directions shall come into force with immediate effect.

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Indian PSBs need Rs 1.2 lakh cr capital infusion: Moody's
Indian public sector banks (PSBs) will require a capital infusion of Rs 1.2 lakh crore by 2020, in view of the heavy losses reflected in their balance sheets in 2015-16, global credit rating agency Moody's Investors Service said in a report on Friday.
 
This is far higher than the additional Rs 45,000 crore capital infusion planned by the government by 2018-19.
 
"After the release of their results for FY2016, our analysis suggests capital requirements of about Rs 1.2 lakh crore for the 11 rated PSBs, far higher than the remaining Rs 45,000 crore included in the government's budget for capital distribution to the banks until 2020," Moody's Investors Service said in its report titled "Weak Financial Performance Highlights Banks' High External Capital Needs".
 
The agency said the capitalisation profile of the PSBs will further deteriorate lest the government provides additional capital support.
 
The government in the budget allocated Rs 25,000 crore for capitalisation of banks during the current fiscal.
 
The government has in total planned a capital infusion of Rs 70,000 crore till 2018-19, out of which it has already spent Rs 25,000 by March 2016. Apart from the Rs 25,000 crore in the current fiscal, it has planned to spend Rs 10,000 crore each in 2017-18 and 2018-19.
 
"If additional capital is required by these banks, we will find the resources for doing so. We stand solidly behind these banks," Finance Minister Arun Jaitley had said in this year's budget speech.
 
The Moody's report said the banks' asset quality is expected to remain under pressure over the next 12 months on account of bad loans to steel and power sector.
 
As a result, the elevated provisioning expenses will continue to constrain profitability and limit internal capital generation, the report said.
 
The PSBs suffered suffered losses of Rs 18,000 crore in 2015-16 because of high non-performing assets (NPAs).
 
Most bank shares are trading below book value, which constrains their ability to use public offerings to raise capital, the report said.
 
The asset quality review mandated by the Reserve Bank of India in the second half of the fiscal year 2015-16, in an effort to clean up the banks' balance sheets, has adversely affected their profitability.
 
Nevertheless, the banks also reported improved capital levels on the back of new RBI rules that have broadened their capital base. The rules, amended in March 2016, allow them to recognise revaluation reserves, deferred tax assets, and foreign currency reserves as common equity tier 1 capital, in turn, resulting in a one-off boost to capital levels.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Tikam Patni

6 months ago

It is all the after effects of Bank Nationlisation, Loan Melas, crony socialism and crony capitalism , 365 days 24/7 election fever and a defective system of governance called Parliamentary democracy.

REPLY

B. Yerram Raju

In Reply to Tikam Patni 6 months ago

Why blame democracy for the solution for democracy lies in more of it. As long as voter population is with the poor and illiterate the results will be as we have been witnessing. Indian Constitution that has over 120 amendments needs to be re-written and the election pattern has to change for better India.

B. Yerram Raju

In Reply to Tikam Patni 6 months ago

Why blame democracy for the solution for democracy lies in more of it. As long as voter population is with the poor and illiterate the results will be as we have been witnessing. Indian Constitution that has over 120 amendments needs to be re-written and the election pattern has to change for better India.

B. Yerram Raju

6 months ago

If the PSBs recover 20% of the NPAs this much capital is not required and the tax payer is spared. It is not just in the hands of the banks. Once the NPAs turned bad debts, the recovery lies in the Courts that decide the cases at will. The entire NPA cases lodged in the Courts had a recovery rate of 20% during the last three years.
Why blame it on the RBI for ordering the clean up of the balance sheets? Several NPAs under the carpet have come to surface with this exercise. Both the powerful PSBs and corporates are aggrieved over the efforts of the RBI and now the rating agencies also echo the sympathy for the delinquent!!

Ramesh Poapt

6 months ago

'most of the banks trading below their book value' actually, considering NPA, net worth has become negative in some PSU banks. And NPA figures are yet not fully disclosed yet.
Hidden/restructered NPA, if included fully,will make most of the PSU banks networth negative..

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