Admitting petitions of DLF directors, the SAT directed SEBI to submit responses to this new bunch of petitions on 6th December and directed the petitioners to file their rejoinders
The Securities Appellate Tribunal (SAT) has bundled petitions of DLF promoter-chairman KP Singh and four others with the main petition that the realty major has filed with the quasi-judicial body on 22nd October and put off the hearing on the matter to 10th December.
DLF Chairman Singh, his son and Vice-Chairman, Rajiv Singh, younger daughter and whole-time director at DLF, Pia Singh, company directors TC Goyal and Ramesh Sanka, had earlier moved the tribunal challenging the Securities and Exchange Board of India (SEBI)'s 10th October ban on them.
The market regulator had banned DLF and six of its senior officials, including the chairman, from accessing the capital markets for three years for alleged non-disclosure of three of its hundreds of subsidiaries in the 2007 IPO filing.
Admitting their petitions, the quasi-judicial body SAT directed SEBI to submit responses to this new bunch of petitions on 6th December and directed the petitioners to file their rejoinders on the 8th, and fixed 10th December for hearing on their petitions along with the main case.
On 5th November, the tribunal had allowed DLF to redeem Rs1,806 crore from its mutual fund investments to meets its working capital requirements and to service its debt, till 31st December.
DLF had sought permission to redeem money locked in MFs after being slapped with the three-year ban by SEBI.
The final hearing in DLF’s main appeal against the order would commence on 10th December, prior to which SEBI and the company will have to file their replies with the SAT.
As an interim measure, SAT has allowed the company to redeem mutual funds worth Rs767 crore in November and further funds worth Rs1,039 crore in December.
According to the ratings agency, entry of Reliance Jio will intensify competition in the data segment, and may cause data tariffs to decline by at least 20%
Ratings agency Fitch on Tuesday said, the entry of Reliance Jio Infocomm in the Indian telecom space will intensify competition and may bring data tariffs down by at least 20%.
It, however, said no tariff wars are expected as witnessed during the 2009-2013 period.
“The likely entry of new telco Reliance Jio, which is a part of Reliance Industries Ltd (RIL), will intensify competition in the data segment, and may cause data tariffs to decline by at least 20%,” Fitch said in its 2015 outlook for Indian telecommunications services.
Reliance Industries had announced that it would launch commercial 4G telecom service of RJio in 2015 entailing an investment of Rs70,000 crore.
Fitch said Jio will focus largely on data and may have a limited impact on the incumbents’ core voice business, given a weak “voice-over-LTE” technology ecosystem and lack of affordable 4G-compatible handsets in India.
“We do not foresee a re-run of the tariff wars of 2009-2013, which led to a severe decline in industry tariffs,” Fitch said.
Fitch expects the top four Indian telcos — Bharti Airtel Ltd, Vodafone India, Idea Cellular and Reliance Communications — to increase their revenue market share to around 83% by 2015 from the current 79% in the $30-billion industry.
“Industry revenue will grow by at a mid-single-digit rate in 2015, driven by data services. The top four telcos’ 2015 average operating EBITDA margin will be mostly unchanged at 32%-33% (2014: 32%) as a decline in data tariffs will offset a gradual rise in voice tariffs,” it said.
Fitch said the top four telcos will generate a minimal free cash flow margin due to higher capex and flat EBITDA; the 2015 industry capex/revenue ratio could rise as fast-growing data traffic requires supporting investment.
While YS Chowdary is extremely wealthy, the shares prices of his three listed Sujana companies are down by 93-97% while being bailed out by banks
Prime Minister Narendra Modi on Sunday inducted 21 ministers in his cabinet. This includes Telugu Desam Party (TDP)'s YS Chowdary, popularly known as Sujana Chowdary. He is an industrialist and one of the richest members of Parliament (MPs) in Rajya Sabha with assets of about Rs190 crore. However, the Sujana group headed by Chowdary is also one of the biggest bank defaulters. Should not PM Modi, who talks about 'cleanliness' in public life all the time, ask his minister to clean his slate before serving in the government?
Citing a release issued by Central Bank Employees Union last week, Congress general secretary Ajay Maken alleged that Chowdary had defaulted on repayment of Rs316 crore taken from Central Bank of India.
Finance minister Arun Jaitley defended inclusion of Chowdary in the Modi cabinet. "They said TDP representative Chowdary has non-performing assets of his company. One of his many companies -- he is a well-known industrialist -- was making losses. One account was in difficulty. The bank restructured it; he is paying back all the instalments (and) has a regular account today," Jaitley told the Times of India.
The All India Bank Employees' Association (AIBEA), which released a list of top 50 defaulters in the country, had identified one of Chowdary's companies. The list released in December 2013, shows that Sujana Universal Industries Ltd (erstwhile Sujana Industries) with dues of Rs330 crore was one of the biggest defaulters. Of this, Rs203 crore pertained to a loan taken from Bank of India and Rs127.42 was taken from Central Bank of India.
Earlier in July 2014, while releasing list of 1,129 'wilful' bank defaulters whose loan dues were about Rs54,000 crore in Andhra Pradesh alone, P Venkataramaiah, general secretary of Bank Employees Federation of India (BEFI), has said, "Most of the companies mentioned in the list are still being run by politicians, bureaucrats and other influential persons who are blocking the recovery."
As of March 2014, Sujana Universal had long-term borrowings of Rs176.62 crore, down 7.63% from Rs191.11 crore in FY2013. However, its short-term borrowing increased by Rs23.14 crore to Rs380.01 crore from Rs356.86 crore during the same period.
Sujana Metal Products Ltd has a long term borrowing of Rs940.1 crore as of March 2014, up by Rs135 crore from Rs805.9 crore as on March 2013. Its short-term borrowing also increased to Rs687.36 crore from Rs536.53 crore, same period a year ago.
According to Sujana Towers Ltd’s annual report for FY2014, this unit was on a borrowing spree. Its long term borrowing has increased by Rs595.04 crore to Rs1,038.64 crore as on March 2014. The company attributed the huge increase in borrowing to working capital term loan (WCTL) and interest on WCTL converted as funded interest term loan (FITL) taken from banks and increase in promoter's contribution as per corporate debt-restructuring (CDR) package it obtained. Its short-term borrowing decreased 6.8% in March 2014 to Rs648.52 crore due to decrease in working capital loans following conversion to WCTL as per the CDR package.
Chowdary's Sujana group’s three companies, Sujana Universal, Sujana Metal and Sujana Towers listed on the stock exchanges. Their stock prices tell us the story of these three companies. All three have reported losses during FY2014.
For the year to end-March, Sujana Metal reported a net loss of Rs20.57 crore from a net profit of Rs41.62 crore while its total revenues fell to Rs3,394.9 crore from Rs4,247.1 crore, same period a year ago. Same is the story of the company's share price. From a high of Rs149.2 in May 2007, Sujana Metal is currently trading at just Rs3.78 on the BSE – a fall of 97%.
These companies have been trouble for decades and have been merrily taking advantage of government ownership of banks and complete lack of accountability. In 2003, Sujana Metal, the then Rs412 crore loss making steel re-rolling and casting company, obtained a corporate debt-restructuring (CDR) from its lenders. Lenders led by Industrial Development Bank of India (IDBI), sanctioned an ad hoc debt restructuring facility as well as deferred repayment of principle and interest up to March 2005 for Sujana Metal.
Industrial Finance Corporation of India (IFCI), Bank of Baroda, Bank of Rajasthan, IndusInd Bank and the South Indian Bank were part of the lenders who permitted the CDR package to Chowdary's group company.
Sujana Universal said its net loss widened to Rs6.30 crore from a profit of Rs3.4 crore during FY2014. During 2013-14, the company's total revenues increased marginally to Rs3,465.75 crore from Rs3,367.66 crore a year ago period.
Sujana Universal traded at Rs42.7 in August 2005, its highest over the past nine years. Currently, it is trading at about Rs2.55 on the BSE a fall of 93% over nine years.
During the year ending March 2014, Sujana Towers' net profit tumbled to Rs2.66 crore from Rs6.56 crore, while its total revenues declined to Rs1,823.5 crore compared with Rs1,827.1 crore in the 12-months to end-March 2013.
Sujana Towers' share price movement is also not different from its two group companies.
On January 2008, Sujana Towers traded at Rs354.3 and tumbled to a low of Rs19.4 in February 2009. In April 2014, Sujana Tower touched its lowest level of Rs7.46 over the six years. At present, the scrip is trading at around Rs16.5 level, a fall of 95% from the peak.