Companies & Sectors
Suzlon shareholders' wealth plunges by Rs4,100 crore in a year

Suzlon Energy, which has failed to get more time to repay overseas debt worth $221 million, has taken a severe beating in the past many months resulting in investors' wealth plunging by around Rs4,123 crore

 
New Delhi: Investors in debt-laden Suzlon Energy saw their wealth erode by a staggering Rs4,100 crore in less than a year, as value of the wind turbine maker's shares more than halved from its 52-week high of Rs39.10, reports PTI.
 
Shares of Suzlon Energy, which has failed to get more time to repay overseas debt worth $221 million, has taken a severe beating in the past many months.
 
The scrip that touched the 52-week high of Rs39.10 on October 2011 has since then tumbled to close at Rs15.90 on 12 October 2012 on the BSE.
 
The steep slide in value of Suzlon shares has resulted in investors' wealth plunging by Rs4,123 crore in a year.
 
While the company's market capitalisation currently stands at Rs2,826 crore, it was valued at Rs6,949 crore when Suzlon shares touched 52-week high last year.
 
The price of Suzlon shares reached a 52-week low of Rs14.75 on 31st August this year.
 
One of the world's largest wind turbine makers, Suzlon is grappling with high debt levels, sluggish market conditions and stiff competition in recent times.
 
On Thursday, Suzlon shares plummeted over 5% in intra-day trading in the wake of bondholders rejecting a proposal to extend the time to repay $221 million debt.
 
The shares slumped over 5% to Rs15.70 before paring the losses to close at Rs16.20, still down 2.11% on that day. On Friday, it shed another 1.8%.
 
The wind turbine maker has a debt burden of $2.2-2.3 billion. Suzlon is one of the major Indian companies to default on debt obligations. The company's foreign currency convertible bonds (FCCBs) worth $220.8 million (about Rs1,172 crore) were maturing on 11th October and the company was hoping to get bondholders' nod for more time to repay the debt.
 
Suzlon had issued $200 million zero coupon convertible bonds (ZCCBs) and $20.8 million 7.5% Convertible Bond. The company on 18th September had sought extension for redeeming these bonds.
 
"We are continuing our engagement with bondholders and expect to have an acceptable solution at the earliest," Suzlon Group Chief Financial Officer Kirti Vagadia had said on Thursday.
 
Regarding bondholders' refusal to extend repayment period, Ambit Capital said in a report that it does not bode well for the company's financial position and hence is negative even for the equity shareholders.
 
Meanwhile, State Bank of India, which has a total exposure of Rs3,500 crore to Suzlon, had said the entity should look at leveraging the balance-sheet of its German subsidiary REpower.
 
Suzlon posted a loss -- after shares in associates’ profit and minority interest -- of Rs848.97 crore at the end of June 2012 quarter.
 

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RBI most known regulator among Indians: Survey

About 74% of those who know these regulatory agencies have reported benefiting directly or indirectly from their regulations, says the survey

New Delhi: The Reserve Bank of India (RBI) is the most known regulator followed by electricity and telecom sectoral watchdogs, Telecom Regulatory Authority of India (TRAI) and Central Electricity Regulatory Commission (CERC), reports PTI quoting a study by CUTS International.

 

"Awareness regarding regulatory bodies is limited to recognition of their names and knowledge about their basic mandate," according to the study prepared by CUTS International, a non-governmental organisation (NGO) with support of the Consumer Affairs Ministry.

 

Geography-wise, the awareness regarding regulatory agencies is highest in northern and western region as compared to other three regions, it said.

 

The study also observed that "about 74% of those who know these regulatory agencies have reported benefiting directly or indirectly from their regulations, while the remaining 26% respondents do not agree to this".

 

The survey "State of Indian Consumers 2012' conducted in 22 states and union territories with a sample size of 11,499 highlighted that among eight regulators, RBI was widely known among people with 40% respondents saying they recognise at least the name of the regulator.

 

The next in terms of people's awareness were the TRAI (27%), CERC (26%), Pension Fund Regulatory and Development Authority-PFRDA(25%), Insurance Regulatory and Development Authority-IRDA (24%).

 

The least known regulators were Securities and Exchange Board of India (SEBI) and Food Safety and Standards Authority of India (16% each) and Forward Markets Commission-FMC (8%), the study revealed.

 

On awareness about government laws that seek to protect consumers, the study said, only about 20% were aware of the Consumer Protection Act or had heard about the act.

 

Awareness regarding consumer protection and related acts is highest in southern region as compared to other regions, it added.

 

"It is the best known act followed by Weights and Measures Act and Food Safety and Standards Act. Legal Metrology Act, Contract Act and Competition Act are the most uncommon acts recognised by least number of respondents," the study said.

 

The purpose of the study was to understand the real status of the common consumers at grassroots with regard to level of awareness and in terms of realising the basic consumer rights, it added.

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ED attaches property, bank accounts of doctor, CA in Delhi

ED unravelled a maze of dubious and false transactions done by the doctor to allegedly defraud a number of financial organisations in the national capital region on the pretext of building a hospital in Ghaziabad with the help of the CA

 
New Delhi: The Enforcement Directorate (ED) has attached properties and bank accounts of a doctor and a Chartered Accountant for allegedly laundering and defrauding on a Rs6.5 crore loan taken from the State Bank of India (SBI), reports PTI.
 
The order, under the stringent provisions of the money laundering Act, has been issued by the Delhi zone office after the ED unravelled a maze of dubious and false transactions done by the doctor to allegedly defraud a number of financial organisations in the national capital region (NCR) on the pretext of building a hospital in Ghaziabad, near Delhi.
 
According to the ED, which registered a case under the Prevention of Money laundering Act (PMLA) last year, it took over the case from the Central Bureau of Investigation (CBI), which had earlier filed a forgery case in this regard after the doctor had taken a land for developing a project called Raghubir Hospital Pvt Ltd and had applied for project loan of Rs20 crore from SBI by submitting "forged proforma invoices and receipts." 
 
The doctor, according to ED, applied for the loan with the help a CA and subsequently the State Bank of India (Nehru place branch) sanctioned him a term loan of Rs6.5 crore in 2006.
 
This loan amount, the ED attachment order sent to various banks involved in the case said, was "misappropriated (by the doctor) by submitting fictitious documents, bills towards purported supply of material and medical equipments" through non-existent suppliers.
 
The ED found that the doctor "defrauded the bank by siphoning a sum of Rs4.92 crore by withdrawing the money in cash or transfer to other accounts" including payments made to an insurance company and a bank against re-payment of loan he had taken from them and to the CA for providing services to get the loan on "fictitious documents." 
 
The agency, in its 22-page order, stated that the CA garnered "proceeds of crime" of Rs70 lakh from the doctor for helping him in the deal and he subsequently utilised this money to purchase property and deposited the rest of the amount in his account in ICICI bank in Nehru place.
 
The ED attachment ensures that the freezed properties cannot be used by the accused and he cannot take any benefits from these assets, but the order can be challenged by the accused at the adjudicating authority of the PMLA which is a quasi-judicial body.
 
Amongst the attached immovable properties are the doctor's house and hospital building located in Ghaziabad (against the Rs6.5 crore SBI loan), office property of the CA and his account in ICICI bank.
 

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COMMENTS

nagesh kini

4 years ago

I'm not surprised.
Transgressions by professionals like doctors and CA's are given a go bye, just because their Regulators like the MCI and ICAI are lax toothless watch dogs that neither bark nor bite.
Surely in this racket are also lawyers who would have vetted the documents and the bank officials who ought to have carried their due diligence. They also should be investigated.

nagesh kini

4 years ago

I'm not surprised.
Transgressions by professionals like doctors and CA's are given a go bye, just because their Regulators like the MCI and ICAI are lax toothless watch dogs that neither bark nor bite.
Surely in this racket are also lawyers who would have vetted the documents and the bank officials who ought to have carried their due diligence. They also should be investigated.

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