Regulations
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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Airlines offer discounted fares to attract flyers
 Various airlines on Tuesday announced discounted fares to attract flyers during the lean travel season.
 
National passenger carrier Air India through its scheme “Monsoon Sale” announced discounts on select sectors in the economy class for travel on both domestic as well as on the international sectors.
 
“Under this offer, available from 9th to 15th August 2016, Air India flyers can book tickets at amazingly low fares starting at INR 1,199/- (all-inclusive one-way fare) and INR 15,999/- (all inclusive) on its select domestic and International sector respectively,” the national carrier said in a statement.
 
The airline cited that the offer can be availed on more than 250 domestic sectors for travel between August 22 and September 30, both days inclusive.
 
“On the International network, the sale is valid on select return flights (ex India only) for a travel period from September 15th to December 15th 2016 (both days inclusive) for commencement of journey,” the statement added.
 
Apart from Air India, budget passenger carrier SpiceJet too came out with discounted air fares under its “Great Independence Day sale” scheme.
 
The low cost carrier (LCC) said under this scheme, it will offer one-way fares as low as Rs 399 base fare (surcharge and taxes extra as applicable) for travel to select destinations on its domestic network and the international fares start at Rs 2,999 base fare (surcharge and taxes extra as applicable) for non-stop direct flights.
 
According to the budget carrier, the three-day sale launched on Tuesday will be open till midnight August 11 and the travel period covered is from August 18 to September 30.
 
The airline added that it is also offering attractive fares on various direct flights across the network.
 
Another LCC IndiGo announced its discounted air fares offer starting at Rs 806 for travel on its domestic network. 
 
Sharat Dhall, President of Yatra.com said: “With the long rakhi weekend coming up, it is a great time for a quick getaway for Indian travellers and that's the reason the airlines have launched sales."
 
"These fares are definitely going to be a hit with customers.”
 
Airlines offer these kinds of special fares not just to stimulate demand, but also to increase load factors during the lean seasons. The periods between January-March and July-September are considered to be lean travel seasons.
 
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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Incumbent telcos accuse RJio of choking their networks; appeal to Dept of Telecom, not TRAI
What has been till date a closed group discussion has now come out in the open as a war with incumbent service telecom providers accusing Mukesh Ambani-led Reliance Jio (RJio) of choking their network through heavy voice call traffic. What is more surprising in this matter is, industry body Cellular Operators Association of India (COAI), instead of raising this matter with the telecom regulator, has requested intervention from the Department of Telecommunications (DoT). RJio is also a member of the industry body. This shows that the incumbent telcos are not happy with the Telecom Regulatory Authority of India (TRAI) as far as the competition and allowing extended trials to RJio is concerned.
 
Incumbent operators alleged that RJio is offering full-fledged services under the garb of testing, thus violating rules governing interconnection, pricing and competition.  
 
In a letter to Telecom Secretary JS Deepak, the COAI said, "This is no test. This is the provisioning of full-blown and full-fledged services, masquerading as test, which bypass regulations and can potentially game policy features like the interconnection regime, non-predatory pricing and fair competition.” 
 
RJio has been conducting trials of its 4G services since December last year. In the first stage, it offered connections to its employees. In the second stage, RJio allowed these employees to invite 10 people to test the network. 
 
COAI alleged that RJio users are consuming about 25-30 times more data than the average Indian user and 8-10 times the global benchmark as its services are free. In addition, the voice traffic emanating from RJio is burdening points of interconnet (PoIs), which is affecting subscribers of other telcos, the industry body alleged. 
 
But RJio countered it by saying, despite keeping the regulator and the DoT informed about the points of inter-connect, it was not being provided with adequate access to terminate the calls/data -- an issue, which was raised at various forums. "In fact, during the test trial process, there have been severe quality issues on termination of calls from RJio's network to other operators' network, precisely owing to this issue," it said, counter-accusing the existing players of deliberate attempt to muzzle such access.
 
The industry body also demanded RJio should cut all connections (about 15 lakh) for the extended trials. 
 
Responding to the allegations, RJio said, the extensive tests being carried out for Jio 4G services before a full-fledged launch not only have legal sanctity, but are also aimed at ensuring a high quality offering in a market, where call drops have become common place. “At the outset, the contents of the said letter from COAI are malicious, unfounded, ill-informed, and frivolous and are contrary to actual facts," said two letters from the company, one addressed to the Telecom Commission and the other to TRAI.
 
The company also quoted what it thought were relevant portions of its licencing pacts. "In view of the above said provisions of the unified license, it is reiterated the test trials being conducted by RJio are well within the scope of the terms and conditions of the unified license," said the letters from RJio.
 
COAI also accused the telecom regulator TRAI of favouring the Mukesh Ambani-led telco. In a press release, the industry body said, “….the bias is also evident from the fact that TRAI, in an unprecedented move, reduced the block size of 2,300MHz band spectrum from 20MHz to 10MHz, only to accommodate existing BWA holders who would have otherwise crossed the band-specific cap beyond 30MHz.”
 
RJio is the only operator that has pan-India 2,300 MHz band. 
 
“A clear, stable and predictable policy environment is the cornerstone of any regulatory regime that fosters industry growth and customer services. Over the past few months, the industry has seen an unprecedented deluge of discussion papers from TRAI. Some of the consultation papers appear to be heavily loaded in favour of new players and point towards a bias against the existing operators. We hope that TRAI will take a more balanced view on issues impacting the entire industry and ensure a level playing field,” the release from COAI says.
 
In the release, the industry body also cited some instances, like regulation of charges for termination of internet telephony calls, and call drops regulation, which was set aside by the Supreme Court.
 
RJio said, "We state that all steps taken by COAI, in last few days by issuing press releases, alleging unfounded biases with the regulator, and by writing letters against the test trials are in fact attempts to sabotage the market entry of RJio, a new player, and malign its name."
 
It has also sought the intervention of the authorities, and the COAI, in ensuring that existing players comply with licencing agreements and augment the points of inter-connect with RJio -- as it would otherwise be tantamount to a breach of regulations.
 

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COMMENTS

Mahesh S Bhatt

4 months ago

Sir Badabhai hai Dadagiri is in blood Congress & BJP are his dukaans.

I am not saying Mukeshbhai is saying.Nira Radia tapes case is Subjudice and shall be forever be forgetten to be there.

Sad truth is there is no National Level quality monitoring Network Monitoring Center from DoT & Ministry of Telecom to handle Rs.3,77,683 Crore ...2014.

Kapil Sibal then Telecom Minister toned down budget from 2000 crores to 200 crores at peak of 2G scam where 176000 crores CAG losses were reported & 122 licences cancelled.

Today Ravi Shankar Prasad was branded as Call Drop Minister in Bihar & his replacement is equally same.No Change call drops happen/overbilling is norm,largest legal manipulation sector.

Nixi ( National Interconnect Exchange which connects all telcos /ISP's traffic & offers POI 's they donot know their own internal IP/MPLS data traffic statistics in IP & MPLS ( Virtual layers) Cisco/Juniper & MNC's donot share information.

We are independent Software Defined Networks vendor with top 3 telcos/1 major Ministry & 2 BFSI clients use our tools but neither DoT /Ministry wants true picture.

Its 6 blind man and Elephant stories each one is correct without TRUTH.

God also doesnot support liars.Not to talk on SOC ( Security Operating Centers ) of Indian State few months back most advanced state Maharashtra had Ransomeware attack & got paralysed.

Amen & Lets enjoy rains Om Namah Shivah on 70 year of independence next week.Take is easy sab chalta hai.

As India is Highly Developed Global Economy is Beautiful State of innately inherently Legally Illegal State of ever progress.

Mahesh

Ralph Rau

4 months ago

Time to apply for MTNL and BSNL landlines !

Hiren Patel

4 months ago

Present service providers should not be worried at all if they are efficient, consumer friendly. But everybody knows their approach and how they looted the people

SuchindranathAiyerS

4 months ago

Interesting. I can say this, as a frustrated Airtel customer, the call drops on incoming calls are phenomenal when I am at home since years and complaints to Airtel have led to no solution. I thought I might be in a air wave shadow, but there is a lot of Reliance in the vicinity too.

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