Economy
Public debt falls to Rs.55.73 lakh crore at fiscal-end
India's public debt declined marginally to Rs.55.73 lakh crore at the end of the last fiscal in March, registering a fall over the previous quarter of 0.04%, an official statement said on Monday.
 
Government debt (excluding liabilities under the Public Account) was at Rs 55.75 lakh crore at the end of December 2015, said the quarterly report on debt management released by the finance ministry.
 
Government's domestic borrowing for 2015-16 have been revised downwards, it said.
 
"Government issued dated securities worth Rs.84,000 crore to complete its gross borrowings of Rs.5,85,000 crore for FY 16.
 
"Gross and net market borrowing requirements of the government for FY16 were revised lower to Rs.5,85,000 crore and Rs.4,40,608 crore, which were lower by 1.18% and 2.75%, respectively, than Rs.5,92,000 crore and Rs.4,53,205 crore in FY15," it said.
 
"The cash position of the government during Q4 of FY16 was comfortable and remained in surplus mode during the quarter. The issuance amount under Treasury bills was also broadly as per calendar," it added.
 
The outstanding internal debt of the government at Rs.5,130,179 crore constituted 37.8% of GDP at end-March 2016, as compared to 38.7% of GDP at end-December 2015.
 
Central government dated securities continued to account for a dominant portion of total trading volumes in the fourth quarter of 2015-16, it said.
 
Net inflows in the form of foreign direct investment during the quarter in question were robust and more than sufficient to fund the external financing requirements, the report added.
 
During 2015-16, there has been an accretion of $18.54 billion to the foreign exchange reserves which touched $360.1762 billion at end-March 2016. 
 
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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Nifty, Sensex weak; may make an effort to stabilise – Monday closing report
We had mentioned in Friday’s closing report that Sensex, Nifty were under pressure. The major indices of the Indian stock markets moved up during the day, but got slammed again the in the late afternoon session and closed with minor losses over Friday’s close. The trends of the major indices over Monday’s trading are given in the table below:
 
 
Key Indian equity market indices that opened in the green on Monday were trading flat in the afternoon session. Good buying was observed in fast moving consumer goods (FMCG) and telecom sectors, while selling pressure was seen in realty and energy sectors. There was no fresh macro-economic stimulus and the market is in a wait and watch mood until there is clarity in interest rates from the US Federal Reserve. Trading volumes were also on the lower side on the NSE.
 
Upcoming derivatives expiry, combined with March quarter results and position of foreign investors vis-a-vis India, will guide the domestic equity markets during the week ahead, feel market analysts. Besides, trends in global crude oil prices, movement of the Indian rupee and further announcements on the monsoon will influence investors' sentiments. On the domestic front, a key event to be watched is the results of some of the large companies in the capital goods sector. The expectation is negative, which is likely to put additional pressure on the markets. Major firms like ONGC, IOC, HPCL, Power Finance Corporation, Bajaj Auto, Ashok Leyland, Tata Steel, GAIL, India Cements, BHEL, Crompton Greaves, Cipla, Abbott India, GSK Pharma are expected to announce their Q4 results in the coming week.
 
Reserve Bank of India (RBI) Governor Raghuram Rajan on Saturday said despite two droughts and a weak international market scenario, the Indian economy has recorded 7.5% growth. He said India is largely protected from global volatility. "The Indian economy has recorded 7.5% growth, which suggests we have macro stability, which is desirable and need to continue to preserve it," Rajan said at the Mahtab memorial lecture.  "There is a lot of uncertainty as to what Japan will do or what China will do. But, the way to maintain our growth is really to start with a strong policy. Today, we are largely protected from the volatility," the RBI governor said. He, however, said India needs to be vigilant against the global market. "We need to grow. But, we need to grow with macro stability. We need to ensure we grow in a sustainable way. For that, we have to keep in mind the fiscal consolidation, control of inflation and clean-up of banks," Rajan said. He said the policy framework and macro stability would help gain the trust of outside investors and they would then be interested in lending to India. He batted for lighter regulation for small scale industries and easier business environment for start-ups in order to foster job creation. Overall, we can infer that RBI policy would be in favour of fiscal consolidation, inflation control and creation of jobs, rather than a policy to encourage a bull run in the stock market by making things attractive for FIIs (foreign institutional investors).
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Fraud in Ricoh. What was the role of exchanges, SEBI and rating agencies?
Imaging solutions and IT services company, Ricoh India's case is identical to the Satyam fraud as its revenues, receivables and inventories appear to be padded up, alleges Anil Singhvi, chairman of Ican Investment Advisors in a television interview. Despite several discrepancies in following regulatory practices, none of the exchanges, market regulator or even credit ratings agencies have shown interest in the affairs of Ricoh India. The company, a unit of Japanese Ricoh, not only failed to file its September quarter results for several months, but also changed its auditors several times.  
 
Speaking with CNBC-TV18, Singhvi said, "There are only one or two points which one has to just look at it. The total borrowing two years back in March 2014 was Rs367 crore which went up Rs716 crore last year, that is March 2015. And now, it is Rs1,300 crore. `A company which does not incur a single rupee as a Capex, the loans going up from Rs300 crore to Rs1,300 crore. In addition, the parent has provided Rs500-Rs600 crore. They have given Rs200 crore of non-convertible debentures (NCD) and Rs270 crore of commercial papers (CP). I have yet to come across many companies in India where parent and particular in multinational company (MNC) will be giving a CP of Rs270 crore for a profit making company."
 
Bengaluru-based InGovern Research Services that provides proxy-voting advisory has also raised concerns on the operations of Ricoh India, in which auditors have pointed our several financial inconsistencies. Seeking appointment of government nominated directors on the board of Ricoh India, the proxy advisory firm, put the onus on market regulator Securities and Exchange Board of India (SEBI) to intervene in the matter as a pro-active regulator, says a news report.
 
Last week, after several months delay, Ricoh India filed is results for the September 2015 quarter. The company has reported a loss of Rs147 crore for the second quarter of FY2016 even as its total revenues jumped to Rs661.6 crore from Rs374 crore, same period last year. 
 
In a regulatory filing on 18 February 2016, the company said that it is about to finalise its accounts and will file it in a short time. Further, the reason for the delay in filing was cited as the change in statutory auditors last year, which led to the new auditors taking longer than usual to furnish the signed reports to the Audit Committee. The company’s Board meetings have also been repeatedly postponed from 5th November to 10th November, and later to 14th November 2015.
 
According to report from LiveMint, PricewaterhouseCoopers (PwC) through Amarchand Mangaldas & Co conducted a forensic audit of Ricoh India. On 10 July 2015, the Company’s Board appointed BSR & Co as its new statutory auditors for five years in place of retiring auditors Sahni Natarajan and Bahl. Ricoh India’s regulatory filing on 7 December 2015 says that the company has considered and taken note of the recommendations of its statutory auditors. However, there is no mention of key recommendations from the statutory auditors.
 
In April 2016, Ricoh India had informed the exchanges that an independent agency has been appointed to assist the Audit Committee to better understand certain areas where the auditors had emphasized further review. This agency was conducting a review, which will be completed soon. It comprises of an independent law firm and accountants. Interestingly, some members of the top management including the CEO and CFO, have been asked to be on leave during the said review process. These include, Manoj Kumar, Managing Director and Chief Executive Officer, Arvind Singhal, Chief Financial Officer and Anil Saini, Senior Vice President and Chief Operating Officer of Ricoh India.
 
Earlier, the company had sent a communication to the exchanges on 18 February 2015 stating that 'The Company has not yet received the signed limited review report from the auditors and the audit committee would take up again the matter with the Statutory Auditors to submit their limited review report on an immediate basis.' Further, the filing stated, 'In order to assist the audit committee, the audit committee has sought the opinion of an Independent Agency in this regard.'
 
“Most importantly, the entire replacement of auditors raises a lot of doubt. They also could not figure out. It was not clear whether the parent company knew about the issue. If they knew it, they should have immediately informed the stock exchanges,” the report from LiveMint says quoting Shriram Subramanian, managing director of InGovern.
 
"Class action suit should be taken. At the end of the day, they (the government) did it in the Satyam case. Government-appointed directors should be there on the board. Not one director but all the directors,” he told the newspaper.
 
Ricoh India also filed a police complaint saying it has detected massive financial irregularities and fraud in the company after a forensic investigation revealed wrongdoing.
 
While the company was struggling with its audit reports, ratings agencies were too not concerned. In January, India Ratings and Research Pvt Ltd (Ind-Ra) upgraded Ricoh India’s Rs200 crore long-term non-convertible debenture (NCD) to Ind-AA from Ind-A. The ratings agency, a unit of Fitch, also upgraded long-term issuer rating of the company to Ind-AA from Ind-A, with a stable outlook.
 
According worried investors, Ricoh India first needs to fix its governance issues. What is more shocking in this case is silence from the exchanges and regulators. Despite all the incidents taking place in Ricoh India, there is no record of the stock exchanges having posed any questions to the company.
 
Ricoh India closed Monday 5% down at Rs269 on the BSE, while the 30-share benchmark ended the day marginally down at 25,230.

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COMMENTS

Sat Anand

2 months ago

Outside India, Ricoh is well-known a global technology company specializing in office imaging equipment, production printing solutions, document management systems and IT services. Ricoh Group operates in about 200 countries and regions The majority of the company's revenue comes from products, solutions and services that improve the interaction between people and information. Ricoh also produces award-winning digital cameras and specialized industrial products. Ricoh is known for the quality of its technology, the exceptional standard of its customer service and sustainability initiatives.
I am impressed with the trendsetting THETA 360° cameras, it’s more feature-packed, and it’s called RICOH THETA SC.

RICOH's multi-function printers 9003SP/ 7503SP/ 6503SP are very advanced and efficient.

Ramesh Poapt

9 months ago

fraud,ok! but premature to say it was malafide or not willful, unnoticed by board.

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