Gujarat Gas: Buoyant
Gujarat Gas Limited (GGL), which supplies piped natural gas (PNG) for commercial and domestic use, was formed by the amalgamation of GSPC Gas Company Ltd, Gujarat Gas Company Ltd, Gujarat Gas Financial Services Ltd and Gujarat Gas Trading Company Ltd with GSPC Distribution Networks Ltd (now GGL), in April 2013. GGL is India's largest city gas distributor, spread across 23 districts in...
Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital Access

Subscribe

Moneylife Magazine Subscriber or MAS member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • Nifty, Sensex Directionless – Tuesday closing report
    We had mentioned in Monday’s closing report that Nifty, Sensex lack trigger. The major indices were range bound  and ended with small losses. On the NSE, there were 645 advances, 1,129 declines and 339 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
     
     
    The Sensex and Nifty fell after initial gains on Tuesday awaiting a stimulus package from the government.
     
    Private lender Yes Bank fell nearly 7% following revelations of corporate fraud at CG Power and Industrial Solutions. Hit by major corporate governance issues involving unauthorised transactions and understatement of liabilities, Gautam Thapar-led CG Power and Industrial Solutions'' shares plunged 20% on the BSE.
     
    The company's Risk and Audit Committee (RAC) revealed that the firm and the group together could have under-reported liabilities to the extent of over Rs3,600 crore in FY17 and FY18. The corporate fraud, which went unnoticed for almost three years, has raised questions over regulatory oversight.
     
    Mahindra and Mahindra Financial Services has signed a joint venture with Ideal Finance, a subsidiary of Sri Lankan conglomerate Ideal Group and it will acquire 58% stake in Ideal Finance for Rs80 crore. 
     
    INEOS Styrolution India promoter, INEOS Styrolution APAC Pte, Ltd, (Promoter), expressed their intention to acquire approximately 25% of the paid-up equity shares presently held by the public and consequently voluntarily delist the equity shares from the stock exchanges.
     
    Opto Circuits India posted net profit of Rs10.79 crores for the quarter ended June 2019 (Rs12.95 crores in Q1 FY19) down 17% year-on-year. Total income declined 30% y-o-y to Rs50.70 crores (Rs71.95 crores in Q1 FY19).
     
    Moody's downgraded Indiabulls Housing Finance long term corporate family rating to Ba2 from Ba1. Moody's has also downgraded the company's foreign-currency senior secured rating to Ba2 from Ba1, foreign- and local- currency senior secured MTN program ratings to (P)Ba2 from (P)Ba1. Moody's has changed the outlook to negative from stable.
     
    Non-life insurance companies earned a premium income of Rs14,378.45 crore in July this year, up nearly 23% from a year ago, data from the Insurance Regulatory and Development Authority of India (IRDAI) showed. The seven standalone private sector health insurers witnessed a 44% jump at Rs1,116.85 crore from Rs777.01 crore premium collected a year before.
     
    Income Tax department had conducted searches at the respective Mumbai offices of Oberoi Realty and Capacit'e Infraprojects. Since Oberoi Realty deals in the luxury home segment, the department suspects benami transactions by flat buyers to hide their identities. "There was suspicion on related party transaction within Oberoi. The I-T department also suspects a difference between the sale price of housing units shown on the books and the registered prices," a senior official of income tax department was quoted by Moneycontrol.  Capacite Infra is one of the largest vendors of Oberoi Realty and recently secured Rs 400 crore-worth orders, according to reports. Capacite fell by 17.95% while Oberoi fell by only 3.65% in NSE. 
     
    The top gainers and top losers of the major indices are given in the table below:
     
     
    The closing values of the major Asian indices are given in the table below:
     
  • User

    CG Power: Unauthorised Transactions, Seemingly Conducted in a Fraudulent Manner
    CG Power & Industrial Solutions Ltd, a maker of power equipment, got locked in the lower circuit of 20% on Tuesday at Rs14.80 after its board discovered unauthorised and undisclosed transactions in the company. This was officially disclosed to the stock exchanges by the company this morning.
     
    An independent legal firm appointed by the board to conduct an investigation on certain transactions, has pointed out certain misrepresentation in financial statements of the company and unauthorized financial transactions. The key highlights from the report filed by CG power to the stock exchanges:
     
    1) The total liabilities of the company and the group may have been potentially understated by approximately Rs1,053.54 crore and Rs1,608.17 crore, respectively, as at March 31, 2018; and by Rs601.83 crore and Rs401.83 crore, respectively as at April 1, 2017.
     
    2) Advances to related and unrelated parties of the company and the group may have been potentially understated by Rs1,990.36 crore and Rs2,806.63 crore, respectively, as at March 31, 2018; and by Rs1,479.34 crore and Rs1,331.47 crore, respectively as at April 1, 2017.
     
    3) Certain assets of the company that were purportedly provided as collateral without due authority; and the Company was made a co-borrower and/or guarantor for enabling ostensibly unrelated third parties to obtain loans without due authorisation. The money so obtained were immediately and without due authorisation routed out of the Company, either by itself or from its subsidiaries or ostensibly unrelated parties to certain related parties.
     
    4) The net worth of the company was potentially understated due to unauthorised and inappropriate write-offs and charges debited to the Profit and Loss statement of the company during the year ended March 31, 2018, and April 1, 2017.
     
    5) These were purportedly carried out by identified company personnel (both current and past) including certain non-executive directors, certain KMPs and others identified employees ("CIP") in breach of the Rules of Procedure of the Company ("ROP"), and/or without proper information to or authorization.  
     
    The transactions were carried out by some key managerial personnel and other employees prejudicial to the company’s interest, according to the exchange filing. The transactions appeared to have been undertaken in a seemingly “fraudulent manner” warranting investigation, it said.
     
    In order to determine the complete and financial position and legal implications of the issues involved, the Board plans to conduct a detailed forensic investigation to establish wrongdoing accountability and any other residual implications.
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Ramesh Poapt

    1 month ago

    how was the board ignorant/in dark?

    SANDESH PAWAR

    1 month ago

    Ironic, GE power also had a news related fraudulent behaviour so does CG power.
    I had to read the news twice to see if there was a typo. They are not related just ironic.

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)