Companies & Sectors
Tata Chemicals sells its urea business for Rs 2,670 crore
Tata Chemicals on Wednesday said it has sold its urea business to Yara Fertilisers India Private Limited for a consideration of Rs2,670 crore.
 
"The Board of Directors has accepted the transfer of the business of sale and distribution of urea and customised fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited," the company said in a filing to BSE.
 
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs2,670 crore, the filing said.
 
The company said divestment of the urea business would unlock value for the company, strengthen its balance sheet and would help to pursue growth potentials and opportunities in line with its strategic directions.
 
"This marks a decisive move on the part of the company to move forward on its strategy to build consumer business while maintaining leadership in inorganic chemicals business and focusing the farm business through its subsidiary Rallis and Metahelix," said the company's MD R. Mukundan.
 
Yara India is the Indian arm of Norway's Yara International ASA and it imports, sells and distributes plant nutrition products in the country.
 
"The urea business will now have the benefit of international network of Yara and its global expertise... The company will continue to own the brands Paras, TKS and Daksha. This transaction does not include specialty products and complex fertilisers," the filing said.
 
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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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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