ManPasand is only Promoters pasand as board meet turns into war zone
In what can only be described as the theatre of the absurd colliding with the world of surreal, developments at the embattled ManPasand Beverages over the last few days have left shareholders and people at large gaping. One needs to hear more from the regulators though! The level of jogger pokery at a new level.
 
Curiously on September 9, Batliboi and Purohit recently appointed statutory auditors of the company wrote to the Audit Committee and Board of Directors of ManPasand informing them that their audit team was not allowed to enter the Vadodara factory for conducting the statutory audit. 
 
Security informed the audit team that they had no permission to enter the factory premises. This comes against the backdrop of Batliboi and Purohit being appointed as the auditor by ManPasand replacing Mehra Goel & Co who resigned. 
 
Prior to this in May, 2018 Deloitte Haskins and Sells had also resigned on the eve of the comany's earnings report day. The company has been going through a cycle of pain with the MD and CFO being arrested in the past for GST violations and evasion. 
 
The Vadodara incident comes immediately after another fiasco. On September 6, Independent Director Bipin Rathod intimated the two exchanges that a board meeting had been scheduled in Mumbai at 1.30 p.m., which at the request of an independent director was rescheduled for 2.15 p.m. 
 
The meeting convened at 2.13 p.m., and was attended by all board members barring Abhishek Singh, a whole time director. 
 
The board was informed by the newly appointed statutory auditor Batliboi & Purohit that they have discovered innumerable discrepancies in the books of account in the main under sales and purchase, GST returns, subsequent reversal of sales by the suppliers, capital advances, sundry debtors and sundry creditors, operating expenses and non availability of bank statements and other relevant documents and data for conducting the statutory audit. 
 
The auditors have expressed their suspicion on the said transactions to be fraudulent in nature, accordingly to ascertain the true and fair statement of the affairs of the company, the board has decided to appoint an independent forensic auditor for carrying out the same over the last three financial years. 
 
Financial Solutions who had sanctioned loan of Rs 100 crore to the company has also informed the board that an independent study conducted by them has reiterated the above findings.
 
At this juncture, CMD Dhirendra Singh refused to continue as part of the proceedings further. This is when the rest of the board decided to take a break to reconvene at 5.30 p.m. 
 
The new meeting continued to see Dhirendra Singh missing; Abhishek Singh Bharati Naik, Shailika Soni newly appointed Company Secretary also refused to be part of the meeting. 
 
All this now openly contravening Companies Act and Sebi regulations. 
 
Meeting concluded at 6.02 p.m. after the board was informed that a lender Finquest Financial Solutions had entered into a call option agreement dated 19.7.2019 with promoter Dhirendra Singh and ManPasand. 
 
Dhirendra Singh had agreed in the agreement to irrevocably grant a call option on the call option shares 2,53,65,000 shares equivalent to 22.16 per cent of the paid up capital to sell the same in favour of Finquest Financial Solutions.
 
Complicating the issue and clearly showing that the board is a house divided with heated arguments taking place, Dhirendra Singh on September 12, intimated the exchanges that -- we wish to clarify and affirm that the promoter does not have any intention to sell the stake held by them. 
 
At the time of writing, the share price was at Rs 12.15.
 
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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    RBI reduces risk weight for consumer credit
    To ease liquidity and boost demand, the Reserve Bank of India on Thursday notified the reduction in risk weightage for consumer credit, excluding credit card receivables.
     
    The risk weight for consumer credit, including personal loans, but excluding credit card receivables was reduced from 125 per cent to 100 per cent. 
     
    The consumer credit, including personal loans and credit card receivables excluding educational loans, attracted a higher risk weight of 125 per cent or more.
     
    Effectively, the move will free up capital from the banking sector which would have been set aside while extending such loans.
     
    Last month, the RBI in "Developmental and Regulatory Policies" changes had announced: "Under the standardised approach for 'Credit Risk Management', consumer credit, including personal loans and credit card receivables attract a higher risk weight of 125 per cent or higher, if warranted by the external rating of the counterparty."
     
    "On a review, it has been decided to reduce the risk weight for consumer credit, including personal loans, but excluding credit card receivables, to 100 per cent."
     
    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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    RBI panel for govt role in housing finance securitisation
    The Reserve Bank of India's committee on the development of 'Housing Finance Securitisation Market' has recommended setting up a government sponsored intermediary to "enable market making and standard setting".
     
    The committee, in its report to the RBI, has recommended that "an intermediary to promote housing finance securitisation with the primary functions of standard-setting and market making should be established by National Housing Bank". 
     
    "It is also proposed that this entity would have 51 per cent ownership by the government through the NHB initially. The government ownership in the entity would then be gradually reduced to 26 per cent over a period of 5 years.
     
    "The entity will start with Rs 500 crore of initial capital... the intermediary would be allowed to invest in each pool it securitises to the extent of 5 per cent of the pool or 5 per cent of its own capital base, whichever is lower," it said in the report.
     
    The committee also pointed out the need to develop standards for "loan origination, loan servicing, loan documentation, and loans to be eligible for securitisation, including standardised formats for data collection and aggregation".
     
    Besides, it called for a separation of regulatory guidelines for "direct assignment transactions and transactions involving pass through certificates" as well as for mortgage-backed securities (MBS) and asset-backed securities (ABS).
     
    "Relaxation of regulatory norms for minimum holding period (MHP) and minimum retention requirement (MRR) for MBS; amendments and/or clarifications for registration and stamp duty requirements and tax guidelines to reduce the transaction costs for securitisation as also to encourage investments in pass-through-securities," were also recommended.
     
    The committee was set up to review the existing state of mortgage securitisation market in India and make recommendations to address various issues relating to investors as well as market microstructure.
     
    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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