Economy
S&P cautions India of rating downgrade; retains negative outlook

“We may lower the rating if we conclude that slower government reforms than we currently expect would not lead economic growth to recover to levels experienced earlier this decade,” S&P said in a statement

 
Global ratings agency Standard & Poor's (S&P) today cautioned that it may downgrade India’s sovereign rating to junk grade if the government fails to pursue reforms and check deterioration in fiscal and current account deficits.
 
While retaining India’s sovereign rating at “BBB-” with a negative outlook, S&P said there is at least a one-in-three likelihood of a downgrade within the next 12 months.
 
“We may lower the rating if we conclude that slower government reforms than we currently expect would not lead economic growth to recover to levels experienced earlier this decade,” S&P said in a statement.
 
“BBB-” is the lowest investment grade and a downgrade would mean pushing the country’s sovereign rating to junk status, making overseas borrowings by corporates costlier.
 
“High fiscal deficits and a heavy government debt burden remain the most significant constraints on our sovereign ratings on India. Nevertheless, the government has regained control of public finances and embarked on fresh structural reforms since September 2012,” S&P credit analyst Takahira Ogawa said.
 
S&P said although part of this slower growth in India is cyclical, rigidities in the labour and product markets and inadequate infrastructure constrain the country's medium-term growth prospects.
 
“Despite the initiatives from the Cabinet Committee on Investments to cut red tape on infrastructure and power projects, that committee's success in raising investment growth remains uncertain,” it said.
 
Last month during a meeting with S&P representatives, finance ministry officials had pitched for a ratings upgrade arguing that the government has been taking steps to contain fiscal deficit and promote investments.

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COMMENTS

Nilesh KAMERKAR

4 years ago

When nation's wealth gets plundered, how can the ratings outlook be positive.

Harish

4 years ago

Ratings by this cheater Rating Agencies, Who cares

BSE to shift 29 scrips to T group category for failure to comply with demat norms

According to a BSE notification, these firms have not achieved 50% public shareholding in dematerialised or demat form as per “the shareholding pattern submitted by the companies for the quarter ended March 2013, or have not submitted the shareholding pattern

 
The Bombay Stock Exchange (BSE) has imposed restrictions on trading of 29 stocks for failing to convert at least half of the public shareholding into dematerialised format.     
 
The bourse would shift these scrips to the trade-to-trade segment or ‘T’ group category with effect from 23 May 2013.     
 
According to a BSE notification, these firms have not achieved 50% public shareholding in dematerialised or demat form as per “the shareholding pattern submitted by the companies for the quarter ended March 2013, or have not submitted the shareholding pattern, or submitted incorrect shareholding pattern for the quarter ended March 2013”.     
 
As per Securities and Exchange Board of India (SEBI) norms, shares of all listed companies having less than 50% public holding in demat form need to be traded only in the “Trade-for-Trade” segment of the exchanges.     
 
In the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.     
 
The stocks which would be shifted to the segment include Aadhaar Ventures India, Avon Corporation, Shree Krishna Paper Mills & Industries and SR Industries.     
 
Moreover, the exchange said as many as 409 scrips will continue to remain in ‘T’ group since they have not complied with the demat criteria.     
 
These companies include Count N Denier (India), Filmcity Media, Hindustan Housing Company and Sunday Exports.     
 
“The companies will remain in ‘T’ group till the next quarterly review,” BSE said.     
 
Besides, BSE has retained 481 stocks in the ‘T’ group “for reasons other than demat criteria”. However, the bourse would move 42 stocks out of the ‘T’ group to normal settlement mode from 23rd May, as they have achieved at least 50% public holding in demat form.     
 
Companies such as Cochin Malabar Estates & Industries, Regency Trust, Precision Electronics, Gujarat Sidhee Cement would be shifted to the normal trade category.     
 
On the NSE, while 14 scrips would remain in the restricted segment for non-compliance with demat norms, stocks of two companies would be shifted to normal trading segment from 23rd May.
 

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COMMENTS

Fairy gada

4 years ago

thank you for d news. can u pls tell me where can i get the whole list of these scrips?

Sun TV Networks announces 11% jump in its net profit

The company has reported steady ad revenues as well as increase in DTH subscribers. It has also reported decent net profit and net sales

Sun T V Networks, a south India based media and broadcasting company, has reported Rs472.67 crore net sales for the quarter ended March 2013, up 11% year-on-year (y-o-y) when compared to Rs427.01 crore for the corresponding quarter last year. It reported 6% y-o-y jump in operating profit at Rs348.57 crore. Meanwhile, its net profit increased 11% y-o-y to Rs177.5 crore.

According to the Moneylife database, the latest sales figure growth is better than its three-quarter average y-o-y growth rate of 7%, while operating profit grew at 6% y-o-y which is also higher than the paltry 2% average. The company’s return on net worth and return on capital employed are pegged at 26% and 27% respectively. The company’s market capitalisation is valued at nearly 12 times its operating profit.
Sun TV has maintained its advertising momentum as advertising revenues went up 15% during the quarter ended March 2013, at Rs269.40 crore. Direct-to-home (DTH) subscription revenues were up 16% on a quarter-on-quarter basis and 12% on a y-o-y basis. FM radio operations posted a strong turnaround with revenues increasing by 26% y-o-y.

According to the company, the weekday prime time advertisement rates on its flagship channel, Sun TV, are being increased with effect from 15 July 2013. These are hiked at an average of 19% and consequently the telecasts fees from producers will also be hiked proportionally.


Additionally, Sun TV has issued a notice to the Bombay Stock Exchange (BSE), notifying the exchange of its IPO proceeds, as per clause 43 of the listing agreement. It said, “Against the total projected utilisation of Rs572 crore (net of issue expenses) from the initial public offering (IPO) funds, an amount of Rs355.77 crore has been utilised towards capitalisation of subsidiaries, Rs136.23 crore towards launch of new channels and purchase of new equipment and up-gradation of existing equipment and Rs62.34 crore towards construction of owned corporate office. The balance proceeds from the IPO after meeting IPO expenses, pending utilisation have been invested in fixed deposits with banks.”


The board of directors has recommended a dividend of 40% i.e. Rs2 per equity share of face value Rs5 each. The final dividend claims for 2012 stood at 190%.

The stock is currently quoting at Rs429 on the Bombay Stock Exchange (BSE).

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