Regulations
Vijay Mallya declared proclaimed offender under Money Laundering Act
A special court in Mumbai declared business tycoon Vijay Mallya a proclaimed offender in a money laundering case following a petition by the Enforcement Directorate or ED.
 
Under law, the court naming somebody a proclaimed offender requires the person to appear at a specified place and at a specified time in not less than 30 days from the date of publishing of the order.
 
"It's an effective step towards securing the presence of Mallya and also one more chance to Mallya to come clean before the court in next 30 days. Failing which all his properties will be attached and sold by government," said lawyer Nitin Venegaonkar, representing the ED.
 
The ED has also said that it is in touch with Interpol to release a red corner notice, similar to an international arrest warrant, against Mr Mallya, who is believed to be living in the UK.

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9 out of 10 star-rated ceiling fans fail air delivery test
Nine out of the 10 five-star rated brands of ceiling fans in India that were tested did not meet the requirement of BEE on air delivery- the key performance parameter, says Consumer Voice in a report.
 
Consumer Voice, a voluntary organisation working towards consumer education, did a comparative study of ceiling fans to find the ones with the best energy efficiency. “Ceiling fans are a pretty generic product and spending time and resources to compare does seem like a bit of a waste. However when we take into perspective the millions of ceiling fans being sold annually in India, the amount of electrical energy being consumed and the potential savings in electrical energy that can be realised, the study seems quite justified,” it said.
 
The key points of the study were that the lesser known brand, Lazer, emerged as the top performer, followed by Usha and Marc. Lazer is also the value for money brand. All brands however, met the requirements of Indian standards. Air delivery was found to be less than 210m/3minutes except in the case of Lazer. In order to qualify for BEE’s star rating, it is required that air delivery be not less than 210m/ 3minutes. Higher the air delivery, better the breeze. 
 
As per the test results, only Lazer met the requirements of a five star rating in terms of service value (4.46) , power consumption (48.88 Watts) and air delivery (210/3minutes). It may be noted that higher the service value, better the energy efficiency and air delivered. Also lower the power input, lesser the electricity bill. All the brands passed in the service value test. All the brands were found to be energy efficient, consuming between 48.88 watts and 51.25 watts, Consumer Voice said.
 
It says, only two brands, Lazer and V-Guard had the ISI mark, however, while both met the requirements of Indian Standards, V-Guard did not meet BEE’s requirements for a five star rating in terms of air delivery. “None of the 10 brands provided a standard speed regulator compatible with the fan, often leading to the usage of sub-standard regulators by users and thereby possibly affecting the fan’s performance,” it added.
 
According to the study, Orient was the heaviest at 3.586kg; V-Guard weighed the least at only 2.936kg (motor with blades). The sections the fans were tested on air delivery, service value, power input, starting and running and speed. All the Ceiling fans provided complete marking information. However, Havells, Khaitan, Marc, Crompton Greaves and Orient did not come with an instruction manual. All the ceiling fans were packed in hard carton boxes with thermocol or cardboard supports.
 
Consumer Voice’s recommendations is that Indian manufacturers need to put in extra efforts to improve air delivery and service value in order to enable consumers to realise optimal energy savings. Overall, only one brand, Lazer, qualified for BEE’s five-star rating. The remaining nine were found lower on air delivery. “There is scope for making ‘super-efficient’ fans by bringing down input power by 5% to 10%. A regulator should be capable of reducing the speed of the fan to at least 50%,” it added. 
 
Consumer Voice is a voluntary action group, consisting of academicians, professionals and volunteers channelising their energies towards creating informed consumers. You can subscriber to their magazine here.
 

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COMMENTS

Vinayak Mahamunkar

5 months ago

very usefull
information.

Suresh Gopal

6 months ago

Outsourcing dilutes quality checks

Narendra Doshi

6 months ago

Surprising but USEFUL data.

suneel kumar gupta

6 months ago

Good work done

‘RBI's new norms on stressed assets won’t make an impact’ - Report
The Reserve Bank of India (RBI) has issued guidelines on sustainable restructuring of stressed assets, which would be applicable to accounts where projects have commenced operations with more than Rs500 crore debt. However, with the new norms, haircut assumptions for stressed assets will not change and the threshold of Rs500 crore for debt restructuring is too low, says a research report.
 
In the note, Religare Capital Markets Ltd, says, "The guidelines should benefit companies which are under severe stress and have very high leverage. Haircut assumptions for stressed assets will not change; in fact, they will get recognised early resulting in high credit cost for banks in FY2017 and first half of FY2018. We do not rule out the possibility of companies adopting this route for debt reduction, which are otherwise viable."
 
The RBI guidelines ask banks to follow asset classification or provisioning requirement as per the strategic debt restructuring (SDR) or outside SDR scheme, in case the resolution involves a change in promoter. In other cases, an account can remain standard, if banks have either provided greater than 40% towards debt held in Part B or 20% towards the aggregate debt (Part A and B). Accounts, which have slipped into non-performing assets (NPAs), will continue to be classified as NPA and can be upgraded to standard after one year of satisfactory performance of Part A loans. After this, banks can reverse excess provisions post one year of implementing the resolution plan. Mark to market (MTM) provisions on Part B loans would need to be spread over four quarters. 
 
Existing debt will be divided into Part A and B. Part A loans would be the portion of debt that can be sustained with existing cash flows from operations. There would be no moratorium, relaxation or reduction of interest on Part-A loans and these loans should form at least 50% of current debt, the RBI says.
 
Part-B loans would be the difference between current outstanding debt and Part-A loans. These loans will get converted into equity, convertible preference shares, or optionally convertible debentures. Equity shares would need to be marked to market on weekly basis, while preference shares and debentures would be valued on discounted cash flow (DCF) basis. The guidelines state that the discount rates on preference shares and debentures should be 1.5% higher than lending rates. When preference dividends are in arrears, the value of preference shares should be discounted further by 15% for the first year, 25% for the second year and so on.
 
Religare says, existing promoters of large borrower companies are allowed to continue if they give up their stakes in the same proportion as that of Part B to total dues. This will create a moral hazard as equity write-off always precedes debt. Overall, the new norms from RBI on stressed asset are not a game changer, it added.

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COMMENTS

B. Yerram Raju

6 months ago

The problem with all restructuring exercises - whether large,small, medium - is that it lacks incentive for a banker to engage in the exercise. This one-way street does not lead to the desired destination. It is high time that the RBI modifies its policy stance: if the bank recognises a particular asset as worthy of restructuring and capable of recovering the NPAs in a desirable time-frame and backed by certain fundamentals and compliance that asset can fall between the two stools - NPAs and Standard Assets for a period of one year with mandatory half-yearly review to be submitted to the regulator in the case of all large corporate entities and to the Board of the Bank in regard to all the Medium enterprises.In regard to the micro and small enterprises such restructuring done according to RBI norms, the review mechanism can be with the zonal committees set up under the RBI circular No.338 of the 7th March 2016. After all several NPAs are like spreading a thin cloth on a fence and the cloth has to be taken out without being torn. Dexterous handling by bankers with a positive inclination is the need of the hour. There is no use crying over split milk. Hold the glass well and gulp the milk by sweetening it '' is my advice to the bankers and the RBI should help the process.

SuchindranathAiyerS

6 months ago

Bad Debts have moved from Non Performing Assets to Stressed Assets. The great contribution of a Madison Avenue driven USA and its MBA driven Banking system and Princeton, Wharton, Harvard, Columbia driven Junk Bond Economics is "change but no change" through the invention of Jargon. The Bretton Woods worshiping RBI dare not differ.

Indian Banking has evolved though Nationalization and Neta-Babu-Judge-Cop-Crony Kleptocracy intervention from CAIIB and AIB to MBA.

Why can Indian Banking not move from Hair Cuts to Tirupathi? A scalp shave might be the right place to begin. After hanging all the Kleptocrats, of course.

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