Category Archives: Corporate

Let’s Debate: Farmers and Global Reset

Rajiv Lochan

There should be no fear of any global reset. The belief that big corporates will take over etc. has no bases on the ground. At the same time, the services that are needed in present times for civilised living can only be provided by corporate enterprises. No individual can run a telephone system of the kind that you need today. No government can run large scale services of the sort that we expect for civilised living.

Corporates are at the heart of the global citizen who believes in equality of all and freedom for all. Remove the corporate, big or small, and within a few weeks humans will be reduced to warring tribes in which only one or two persons per tribe have any freedom. Would love to hear any other view on how the future would be/ could be/ should be.

Think of left parties. In india and elsewhere. They are little more than tribal gangs. Anyone who holds a slightly different view is dealt with roughly; put to death even. They have failed to create even a single asset anywhere which can be used by anyone other than the privileged few. In contrast look at corporate giants like Larsen and Tubro. Fully funded by its own workers. Working single mindedly to create value for all irrespective of social origins or status. Ditto other big corporates.

On farmers

Irrespective of whether the laws (the new farm laws introduced by the Modi government) are allowed to exist or are dissolved, the farmer, in the present form, is on the death bed. That is what I have been writing for the last one year. Earlier, I have written of how the small farmer is important for our economy. But not this small farmer who is committed to archaic kind of farming. Rather the small farmer who does farming in conjunction with industry. That by the way, is true even today. Only that farmer survives. who has a jod dhanda. The rest simply lead a life of scrounging.

Rajiv Lochan is a scholar-historian, author and a popular columnist

Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies

Newsroom24x7 Network

Panaji (Goa): Government of India has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019.

This was announced by the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman during a Press Conference in Goa on Friday 20 September 2019.

The Finance Minister elaborated  further the salient features of these amendments. They are:

  1. In order to promote growth and investment, a new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.
  2. In order to attract fresh investment in manufacturing and thereby provide boost to ‘Make-in-India’ initiative of the Government, another new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess.  Also, such companies shall not be required to pay Minimum Alternate Tax.
  3. A company which does not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate. However, these companies can opt for the concessional tax regime after expiry of their tax holiday/exemption period. After the exercise of the option they shall be liable to pay tax at the rate of 22% and option once exercised cannot be subsequently withdrawn. Further, in order to provide relief to companies which continue to avail exemptions/incentives, the rate of Minimum Alternate Tax has been reduced from existing 18.5% to 15%.
  4. In order to stabilise the flow of funds into the capital market, it is provided that enhanced surcharge introduced by the Finance (No.2) Act, 2019 shall not apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP, BOI and AJP.
  5. The enhanced surcharge shall also not apply to capital gains arising on sale of any security including derivatives, in the hands of Foreign Portfolio Investors (FPIs). 
  6. In order to provide relief to listed companies which have already made a public announcement of buy-back before 5th July 2019, it is provided that tax on buy-back of shares in case of such companies shall not be charged.
  7. The Government has also decided to expand the scope of CSR 2 percent spending. Now CSR 2% fund can be spent on incubators funded by Central or State Government or any agency or Public Sector Undertaking of Central or State Government, and, making contributions to public funded Universities, IITs, National Laboratories and Autonomous Bodies (established under the auspices  of ICAR, ICMR, CSIR, DAE, DRDO, DST, Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting SDGs.

The total revenue foregone for the reduction in corporate tax rate and other relief estimated at Rs. 1,45,000 crore.

Jet Airways is grounded as consortium of lenders refuse to fund critical services

Newsroom24x7 Network

Mumbai: Late night this past Tuesday 16 April 2019, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that they were unable to consider its request for critical interim funding.

Since no emergency funding from the lenders or any other source was forthcoming, the airline would not be able to pay for fuel or other critical services to keep its operations going.

Consequently, with immediate effect, Jet Airways has been compelled to cancel all its international and domestic flights.

The last Jet Airways flight operated on Wednesday.

Through its emergency communique, Jet Airways has announced that now it shall await the bid finalisation process by SBI and the consortium of Indian Lenders.

In its response to the airline, the lenders have said, “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recip-ients today. The bid documents inter alia has solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.”

Jet Airways has assured that it will continue to support the bid process initiated by the lenders.

In the meanwhile, Jet Airways has informed all guests about the temporary suspension of flight operations via text message or email to the contact details listed in their bookings.

CLICK HERE for Message from Jet Airways CEO

Naresh Goyal

On March 25, when the Chairman of Jet Airways Naresh Goyal stepped down, the Board of Directors of the airline had approved the following:

The conversion of INR 1 of Lenders’ debt into equity by the issuance of 11.4 crore equity shares, in accordance with the RBI Circular of 12th February, 2018.
With this, the consortium of Indian lenders, led by State Bank of India (SBI), will become the majority shareholders of Jet Airways.

Reconstitution of the Board of Directors of the Company by:
Resignation of Promoter, Naresh Goyal, Ms. Anita Goyal, and Kevin Knight, nominee director of Etihad Airways from their positions on the Company’s Board.

The two nominees of the Promoter and one nominee of Etihad Airways will continue on the Board.

Two lender nominees will be inducted to its Board, subject to the receipt of requisite approvals.

As part of the Resolution Plan, the Lenders will provide an immediate interim funding support of INR 1500 crore to Jet Airways. The Company will also engage with payment intermediaries for release of trapped cash. The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner. The move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations, aiding the airline’s long term transformation to continue expansion and to regain its position as a global player.

An Interim Management Committee (IMC) has been constituted to oversee the overall financial and operational performance of the airline under the overall supervision of the Board of Directors with the support of McKinsey & Co.

Anandam International is building a global network of warehouses

Anandam International Chairman Ashok Anand, who has been running a highly successful real estate business in Bhopal, took the lead more than 10 years ago and has the credit of setting up a state of the art logistic hub at Mandideep near Bhopal the capital of the central Indian State of Madhya Pradesh, has embarked on an ambitious plan to build a network of warehouses across the globe in order to connect those willing to offer warehouse space and clients looking for logistics solutions

Anandam International runs the largest Warehouse at Mandideep near Bhopal in central India. The organisation has more than 10 years of expertise in the field of logistics and under the leadership of its Chairman, it is presently engaged in building a global network of warehouses to take care of the storage and logistics requirements of large business houses and willing clients in any part of the world!

The Anandam International Warehouse at Mandideep is presently catering to big brands like ITC, Royal Enfield and ATC.

Anand, who later this month is travelling to several countries in Europe to build the global network of warehouses, told Newsroom24x7 that the future of logistics lies in efficient management of Supply Chain and Material Distribution, coupled with Ease of Transportaion and Storage between point of origin to distribution and the final point of consumption of goods.