RBI allowed banks to provide loans with tenures of up to 10 years from existing one year period to exporters to help them ensure capital flows to fulfil long-term contracts
The Reserve Bank of India (RBI) on Wednesday allowed banks to provide loans with tenures of up to 10 years to exporters to help them ensure capital flows to fulfil long-term contracts. Existing norms allow banks to give loans for up to one year only.
“In view of requests received from exporters, it has been decided to permit banks to allow exporters having a minimum of three years’ satisfactory track record to receive long-term export advance up to a maximum tenor of 10 years to be utilised for execution of long-term supply contracts for export of goods,” RBI said in a notification.
This facility is available with certain conditions, including an interest rate limit of 200 basis points above the London interbank offered rate (Libor), a global benchmark.
Besides, exporters receiving loans of $100 million or above need to report the transaction immediately to the RBI.
As per the conditions, there should be irrevocable supply orders in place.
The contract with the overseas party or buyer should be vetted and must clearly specify the nature, amount and delivery timelines of products over the years and the penalty in case of non-performance or contract cancellation, it said.
Such export advances can’t be used to liquidate rupee loans, which are classified as non-performing assets as per RBI norms, the central bank said.
These exporters should have the capacity, systems and processes in place to ensure that orders over the duration of the tenure can be executed, RBI added.
Anandiben Patel was seen as a natural heir to Narendra Modi as she headed the group of ministers running day-to-day affairs in Gujarat during his hectic Lok Sabha election campaign
Following the resignation of Narendra Modi, the prime minister-designate, Anandiben Patel would take over as chief minister of Gujarat. Patel, the minister for revenues in the state cabinet would be the first woman CM of Gujarat.
Anandiben Patel was elected leader of the Bharatiya Janata Party (BJP) Legislature Party Leader, who will succeed Modi as the chief minister of Gujarat.
73-year-old Patel’s name was proposed and adopted unanimously at a meeting of the Legislature Party in the presence of Modi, who had moments earlier resigned as the chief minister.
Modi’s close aide Amit Shah and BJP General Secretary Thavar Chand Ghelot were also present.
Modi, the longest-serving chief minister of the state, who led BJP to a spectacular victory in the Lok Sabha elections, will take over as prime minister on Monday.
In her acceptance speech, Patel turned emotional and thanked Modi and others for making her the chief minister.
Patel, considered to be very close to Modi, was minister of Revenue and Urban Development in the Modi government. She was also a minister in the government of Modi’s predecessor Keshubhai Patel.
A school teacher by profession, she had left her job to join politics.
Anandiben Patel is seen as a disciplinarian and hard taskmaster who puts a premium on probity, qualities often associated with her predecessor.
The 73-year-old Modi loyalist was seen as a natural heir to the Prime Minister-designate as she headed the group of ministers tasked with the responsibility to run the state’s day-to-day affairs during his hectic Lok Sabha election campaign.
In Gujarat, Patel and Amit Shah are often described as Modi’s “left and right arms".
Known for her no-nonsense image, she is the longest serving BJP minister who joined the party in late 80s and rose steadily through the ranks.
Married to Mafatbhai Patel, a professor, she has been living away from her family since mid-1990s and they have a son and a daughter.
Adi Finechem hit its 52-week high following 123% jump in its full year net profit and bonus issue
Adi Finechem Ltd, an Ahmedabad-based speciality chemical producer, on Wednesday hit its 52-week high at Rs169.15 on the BSE, following 123% jump in its full year net profit and bonus issue of shares.
For the 12 month to end-March, Adi Finechem said its net profit surged 123% to Rs18.68 crore from Rs8.39 crore while total revenues, including sales, grew 23% to Rs151.82 crore from Rs123.10 crore, a year ago period.
Adi Finechem said its total expenditure in FY14 grew 12% to Rs121.33 crore from Rs108.10 crore. Its costs of raw material consumed increased only 6% to Rs93.49 from Rs88.02, a year ago period.
However, Adi Finechem said it paid 125% higher taxes of Rs9.71 crore to Rs4.32 crore, a year ago period.
For the quarter to end-March, Adi Finechem said its net profit surged 145% to Rs6.43 crore from Rs2.62 crore even as its total revenues, including sales, grew 50% to Rs44.32 crore from Rs29.46 crore, same period last year.
Adi Finechem's reserves and surplus increased 79% to Rs34.75 crore from Rs19.41 crore.
Adi Finechem declared dividend of Rs1.50 per share.
The company declared bonus issue in the ratio of 1:10 (1 bonus share for every 10 shares) subject to shareholder's approval. Earlier in July 2013 also it had allotted 1 bonus share for every 10 shares.
Adi Finechem closed Wednesday 4% higher at Rs167.6 on BSE, while the S&P BSE Sensex ended the day marginally down at 24,298.
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