Companies & Sectors
Sahara pays tax dues, Aamby Valley 'unsealed' after five hours

The company also subsequently circulated the latest photos and videos of unrestricted entry-exit at its prestigious project near Lonavala hillstation in Pune district this evening

 

Barely five hours after the Maharashtra government sealed the Sahara India Pariwar's flagship Aamby Valley Resort for non-payment of tax, the company paid up the outstanding non-agriculture tax dues and the seal was broken here on Tuesday afternoon.
 
The company also termed as "illegal and high-handed approach" the sudden move to seal and close the resort's gates by the revenue department officials earlier this morning.
 
In a statement, the Sahara Group also contested the state government's claims of outstanding dues of around Rs.4.50 crore and said it has already paid up Rs.4.25 crore for the past two financial years, with a small outstanding of Rs.27,27,740 left.
 
For the current fiscal (2015-2016), it said that the outstanding amount was only Rs.2,26,13,870 for which it had 30 days time (till March 31).
 
However, at the insistence of the revenue department officials who sealed the project main gate and its administrative offices, Sahara Group made the full outstanding payments (Rs.2,53,41,610) by cheque on Tuesday itself.
 
The company also subsequently circulated the latest photos and videos of unrestricted entry-exit at its prestigious project near Lonavala hillstation in Pune district this evening.
 
Earlier, a team of officials swooped on the township to seal the property's main gates and its administrative sections, but the back entrance was kept open for the staffers and residents.
 
The officials also served a notice to the resort authorities to clear the alleged two-year old dues by March-end, failing which the government would initiate legal proceedings.
 
Aamby Valley, labelled a hill city paradise for the rich and famous, is spread across around 4,300 hectares of lush green hills with a large natural lake and three artificial lakes on the property in Pune district.
 
Constructed in 2003, it boasts of a private airstrip, an 18-hole golf course, premium chateaus, villas and bungalows, shopping plazas, boating and a good all-year round weather.
 
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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RBI amends banks' regulatory capital norms in line with Basel III

India's central bank began implementing the Basel-III norms from 2014

 

The Reserve Bank of India on Tuesday amended the treatment of certain balance sheet items in determining banks' regulatory capital, towards further aligning these to the international Basel III capital standards.
 
RBI said in a release here that among the salient changes made, following a review of the existing capital adequacy guidelines, is that "revaluation reserves arising from change in the carrying amount of a bank's property on its revaluation would be considered as common equity tier 1 capital (CET1) instead of tier 2 capital as hitherto".
 
Further, "foreign currency translation reserves arising due to translation of financial statements of a bank's foreign operations to the reporting currency may be considered as CET1 capital".
 
The RBI also said that deferred tax assets "arising due to timing differences may be recognised as tier 1 capital up to 10 percent of a bank's CET1 capital".
 
These amendments apply with immediate effect, the release added.
 
India's central bank began implementing the Basel-III norms from 2014.
 
The standards, applied after the US financial crisis of 2008, aim at improving the banks' ability to absorb shocks from financial and economic stress, risk management and governance, and strengthening their transparency and disclosure standards.
 
Continuing government efforts to deal with the high levels of non-performing assets (NPAs), or bad debts, of state-run banks, Finance Minister Arun Jaitley on Monday allocated Rs.25,000 crore towards their recapitalisation in the next fiscal.
 
He made the announcement while presenting in parliament the union budget proposals for 2016-17.
 
Jaitley plans to provide Rs.25,000 crore capital each in the current and next fiscal years, while Rs.20,000 crore would be provided during 2017-18 and 2018-19.
 
As per estimates, public sector banks (PSBs) would need additional capital of up to Rs.240,000 crore by 2018 to meet the Basel III capital adequacy norms.
 
The quantum of exposure of Indian scheduled banks in terms of gross NPAs, re-cast loans and write-offs was Rs.9.5 lakh crore as of September last year
 
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

MG Warrier

12 months ago

Hidden reserves add to the strength of balance sheets of banks, corporates, individuals and institutions including governments. As a nation, India is blessed with a large amount of such reserves, which fortunately remain out of reach of ‘exploiters’. There is nothing ethically wrong in drawing from such reserves in times of need.
I remember, when Goenka was confronted by media when The Indian Express was not able to keep due dates for repayment of certain deposits, he kept his cool and responded that only ‘liquidity’ was a problem and assets like Express Towers were there and depositors will be paid back by the company. More recently, there was a report about thousands of crores worth gold and jewellery with Sreepadmanabha Temple in Thiruvananthapuram. Referring to some old records a representative of the Trustees had told media that Maharaja of Travancore who had taken care to keep his assets untouched had also indicated that it was also the intention of ancestors to draw from those assets in times of need like famine and later replenish it in good times.
It is not a crime to productively re-deploy or to ‘account’ hidden wealth, whether it be land with Railways, real estate properties with PSUs, undervalued items in the balance sheets of banks or GOI’s stakes in institutions. But that should be done with a realistic Asset-Liability- Management approach.

Manufacturing conditions improve in February: PMI

Despite faster expansion in new business and growth of new work with Indian manufacturers' production volumes rising in the month under review, the rate of expansion was marginal

 

Manufacturing conditions in India improved for the second consecutive month in February with the rise of new orders, exports, output and purchasing activity, key macro-economic data showed on Tuesday.
 
In February, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single figure indicator of manufacturing performance - remained unchanged from January at 51.1. An index reading of above 50 indicates an overall increase in the economic activity, and below 50, an overall decrease.
 
"The Indian manufacturing economy edged further in the right direction during February, eking out modest gains in new orders and output," said Pollyanna De Lima, economist at Markit, which compiles the survey.
 
Despite faster expansion in new business and growth of new work with Indian manufacturers' production volumes rising in the month under review, the rate of expansion was marginal.
 
Though February saw a loss in growth momentum, underlying demand improved along with new business from overseas.
 
According to the index, weaker rise in costs lead to the first reduction of selling prices in February since September 2015.
 
For the first time in five months, Indian manufacturers' reduced average selling prices lead by softer increase in input costs and on efforts to get new work. However, the rate of discounting was only marginal.
 
According to the sub-sector data, consumer goods emerged as the best performing category where output growth rates and new orders outperformed intermediate goods firms.
 
"Concurrently, the investment goods industry saw a deterioration in business conditions, with output and new orders remaining in contraction territory," said the index.
 
Though input costs rose for the fifth month at a stretch in February, it happened at a weaker rate.
 
The gains made by low oil prices were offset by higher prices paid for imported raw materials like metals along with the effect of rupee depreciation against the US dollar.
 
"Goods producers continue to benefit from lower crude oil prices in global markets, which put a brake on inflationary pressures. In light of these numbers, the RBI has scope to loosen monetary policy to spur the economy," De Lima said.
 
In February, employment across Indian manufacturing sector was broadly unchanged with anecdotal evidence indicating that companies avoided hiring due to cost consciousness and relatively soft demand conditions.
 
For the second successive month, manufacturers' buying levels increased, but at a weaker pace along with input stocks while finished goods declined for the eighth month at a stretch.
 
Delayed client payments resulted in work backlogs accumulation in February.
 
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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