Money & Banking
HDFC bank denying zero balance accounts to Gurgaon villagers
A few branches of HDFC Bank in the rural areas of Gurgaon are declining to open accounts with zero balance for students, farmers and labourers under Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme, applicants said here.
 
HDFC Bank has stopped opening accounts with zero balance in Gurgaon's Manesar, Sohna, Pataudi and Taoru regions.
 
At least 10 new branches of HDFC Bank were opened in the rural belt of the district including in Sikanderpur (Badha), Shikohpur, Hayatpur and nearby villages a few years ago to provide banking facilities to the villagers.
 
Villagers said they were denied an account with zero balance even before the PMJDY scheme was launched.
 
"We opened accounts under PMJDY scheme till October last year (2015) but currently opening of accounts with zero balance has been stopped till further orders from the headquarters," a senior HDFC Bank official said on the condition of anonymity.
 
"Accounts under HDFC's bank schemes number (section) 174 and 171 (for farmers and labourers) have been banned," he said.
 
Said Paramveer, a student: "I had deposited all required documents over three months ago at Sikanderpur (Badha) branch to open an account with zero balance. But bank officials are forcing me to open the account with minimum Rs 5,000 or 2,500 balance."
 
"The bank imposes fine on the account holder if the accepted minimum balance is not maintained," added an accountant.
 
"I had applied for an account under PMJDY but was denied," said a farmer from Hayatpur.
 
"We have received dozens of applications for such accounts and we are forwarding 'genuine cases' to circle head office to seek permission to open accounts with zero balance," Praveen Mehta, a senior executive at Sikanderpur (Badha) branch, told IANS.
 
When contacted at PMJDY's national helpline number (18001801111), the call attendant said: "One can open an account under PMJDY at any bank after providing required documents and can avail benefits provided under the scheme."
 
Satish Yadav, a senior official with a government bank, told IANS: "Private banks usually refuse to open such accounts because they don't want to give benefits awarded under PMJDY scheme to the customers."
 
PMJDY is a national mission on financial inclusion to ensure access to various services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections -- weaker sections and low income groups. 
 
Accounts can be opened in any bank branch or business correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with zero balance. However, if the account holder wishes to get a cheque book, she/he will have to fulfil minimum balance criteria.
 
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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Tata Chemicals sells its urea business for Rs 2,670 crore
Tata Chemicals on Wednesday said it has sold its urea business to Yara Fertilisers India Private Limited for a consideration of Rs2,670 crore.
 
"The Board of Directors has accepted the transfer of the business of sale and distribution of urea and customised fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited," the company said in a filing to BSE.
 
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs2,670 crore, the filing said.
 
The company said divestment of the urea business would unlock value for the company, strengthen its balance sheet and would help to pursue growth potentials and opportunities in line with its strategic directions.
 
"This marks a decisive move on the part of the company to move forward on its strategy to build consumer business while maintaining leadership in inorganic chemicals business and focusing the farm business through its subsidiary Rallis and Metahelix," said the company's MD R. Mukundan.
 
Yara India is the Indian arm of Norway's Yara International ASA and it imports, sells and distributes plant nutrition products in the country.
 
"The urea business will now have the benefit of international network of Yara and its global expertise... The company will continue to own the brands Paras, TKS and Daksha. This transaction does not include specialty products and complex fertilisers," the filing said.
 
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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SEBI provides relaxations for listed entities covered under IND-AS
In order to facilitate smooth transition during the first year of India accounting standard (IND-AS) implementation, market regulator Securities Exchange Board of India (SEBI) issued a circular (No. CIR/CFD/FAC/62/2016) on 5 July 2016 (the Circular). The Ministry of Corporate Affairs (MCA) had issued the Companies (Indian Accounting Standards) Rules, 2015 (IND-AS Rules) (notification no. G.S.R. 111(E) dated 16 February, 2015). According to IND-AS Rules, companies and their auditors are mandated to comply with the IND-AS Rules in preparation of their financial statements and auditor’s reports respectively. 
 
However, the Circular neither draws reference to Regulation 52 of Listing Regulations nor to SEBI Circular dated 27 November 2015. Therefore, the Circular will apply only to companies having its specified securities listed on stock exchanges. Non-convertible debentures (NCD) or non-convertible redeemable preference shares NCRPS listed entities may await similar circular from SEBI.
 
IND-AS Rules are aligned with the International Financial Reporting Standards (IFRS) and are mandatorily applicable on the following class of companies from 1 April 2016:
 
(a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of rupees five hundred crore or more; 
 
(b) companies other than those above and having net worth of rupees five hundred crore or more; 
 
(c) holding, subsidiary, joint venture or associate companies of companies covered by sub-clause (a)  and (b) above;
 
Companies required following IND-AS Rules from 1 April 2016 are in the process of finalizing accounts for the quarter ended 30 June 2016. The Circular facilitates smooth transition and provides certain relaxations to listed entities. Further, the listed entities mandatorily required to follow IND-AS in subsequent years shall avail the benefit of transition in the same manner as provided in the Circular.
 
Major Changes
 
Reporting under existing format
Listed entities can continue to report their financial results in the format prescribed under SEBI Circular dated 30 November 2015 till the period ending 31 December 2016. Hence, financial results shall be prepared in the existing format for the quarter ended June 2016, September 2016 and December 2016.
 
For period ending 31 March 2017, the Circular prescribes following the format under Schedule III to Companies Act, 2013 (Act, 2013) for submission of unaudited or audited quarterly financial results i.e. statement of profit and loss and the unaudited or audited half-yearly balance sheet.
 
However, please note that there is a clear contradiction between the language of para 2.1 and point (v) of para 2.6.1. On one hand, para 2.1 of the Circular prescribed to use the existing format of balance sheet prescribed in SEBI Circular dated 30 November 2015 for half-yearly ended 30 September 2016, on the other hand, for the same quarter, point (v) of para 2.6.1 of the Circular prescribed to use the format of Schedule III of the Act 2013. Since, the format of balance sheet provided under Annexure IX of the earlier circular dated 30 November 2015 and the format prescribed under Schedule III of the Act 2013 are almost similar, the contradiction between the languages does not make much difference.
 
Banking and insurance companies will follow the formats as prescribed under the respective Acts and Regulations as specified by their regulators.
 
Due date of submission of financial results
The existing due dates for submission of financial results for the quarter ended June 2016 and September 2016 has been extended by one month. The deadline for submission of the quarterly results of June 2016 and September 2016 is 14 September 2016 and 14 December 2016, respectively. No such extension has been provided for quarter ended December 2016 and March 2017.
 
Extension for submission of consolidated financial result
Regulation 33(3)(b)(i) of the Listing Regulations mandates intimating the stock exchange regarding its intention to additionally submit quarterly/ year-to-date consolidated financial results in the first quarter of the financial year and the option cannot be changed during the financial year.
 
The Circular extends this period for listed entities required to comply with IND-AS and permits intimating the decision in the second quarter instead of first quarter. The option intimated continues for the rest of the year.
 
Revised format for publishing the financial results in newspapers
 
The format of newspaper publication in case of financial results as required under Regulation 47 (1) (b) was prescribed under Annexure XI of SEBI Circular dated 30 November 2015. 
 
Segment Reporting
 
The Circular necessitates the Quarterly / Annual Segment Information published in compliance with the requirements as prescribed under Accounting Standard (AS) 17/ IND-AS-108 of the AS Rules/ IND-AS Rules, as applicable, following minimum information: - 
 
(a) Segment Revenue (including inter-segment revenue); 
(b) Segment Results; 
(c) Segment Assets; 
(d) Segment Liabilities. 
 
Unallocated items, wherever applicable, shall be shown separately in respect of the above information. Aggregate inter-segment revenue shall be shown as a deduction from the segment revenue.
 
Details to be provided for following period:
 
 
Relaxation from providing comparable figures and other changes
 
The SEBI Circular provides relaxation from providing comparable figures. The details have been shown below in the tabular form:
 
 
 
(Jyoti Srivastva is a Company Secretary by qualification and works in the Corporate Law Services Division at Vinod Kothari Consultants Pvt Ltd)
 

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