No funding for Adani project, says Australia PM

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There will be no government funding for Adani’s $21.7-billion coal mine project, Australian prime minister Malcolm Turnbull said on Friday as he sought to assure a protester in fish costume that he took climate change “as seriously as you”.

Turnbull made these remarks during an election campaign in South Australia. An environmental protester dressed as a clown fish from animated movie Finding Nemo asked him to commit to no public funding for Indian mining firm Adani’s controversial project.

“Adani’s plan to build one of the world’s biggest coal mines in Australia has been hampered time and again. A federal court in August last year had revoked the original approval due to environmental concerns. In October last year, the project got a new lease of life after the Australian government gave its re-approval.

An email to Adani on Friday did not get any response. Analysts said the prime minister’s statement was a major policy shift by the Australian government as until now it had been looking at all sorts of angles to get financial support to the proposal, including the idea of the A$117-billion Future Fund stepping in. A$ is Australian dollar.

“Adani’s pivot into Australian solar project development is looking like a clear insight into how they are going to react. At least with the solar projects, they will have a multi-decade tax holiday in Australia, given they will probably end up having to write off their entire A$1.3-billion ($940 million) investment in Adani Mining Australia profit and loss to-date. This would have a major impact on shareholder equity of the listed Adani Enterprises Ltd, which stood at $2.03 billion on March 31, given Adani Mining Australia represents 46 per cent of the net book value of equity of the entire group,” said Tim Buckley, director of energy finance studies at the Institute for Energy Economics and Financial Analysis (IEEFA).

The admission from the minister that Adani’s proposed Carmichael coal mine project will receive no government money removes one of the final remote funding options for the beleaguered project, he said.

Buckley said Adani Enterprises remained relatively heavily geared, with net debt of $2.6 billion representing 1.3 times book value of shareholders equity. And taking into account the 2015 accounts filed with Australian authorities, Adani Mining Australia Pty is entirely debt-funded and is operating with negative shareholder funds. Hence, financial leverage remains an insurmountable barrier to develop the Carmichael coal proposal. “Adani appears to have no capacity to undertake the high risk A$10-billion Carmichael coal proposal, particularly since the company is now well underway on its new $5-10-billion solar investment programme in India and abroad,” said Buckley.

Apart from Adani, GVK group and Lanco group are also stuck after buying coal mines in Australia.

The Adani group had said they would go ahead with the Australian project to supply cheap coal to Indian power stations. At the same time, Coal India’s production has touched a record high to provide coal to Indian power plants. Besides, with coal-based power plants now shutting down due to high pollution in the developed world, the future of coal mines look uncertain.

Listed company’s documentation may get simpler

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The Securities and Exchange Board of India (Sebi) is learnt to be finalising a new mechanism to simplify the documentation process for listed companies wishing to issue new securities. Sources told FE that the concept of an ‘annual information memorandum’ will be introduced by the regulator, replacing the traditional offer document, if a company plans subsequent public issues via an offer for sale (OFS) or a follow-on public offering (FPO).

This memorandum is expected to provide exhaustive information about a company including financials, pending litigations and risk factors. Companies will have to file the document once a year. To incorporate the new mechanism, Sebi will amend Listing Obligations and Disclosure Requirement (LODR) regulations.

As per the current LODR regulations, a company needs to file an offer document whenever it comes up with a public offering. However, offer documents are not mandatory in the cases of private placement like preferential issue, qualified institutional placements (QIPs), etc. The documentation is also not mandatory in case of rights issue where the company plans to tap existing shareholders.

Offer documents are usually drafted by merchant bankers in coordination with legal advisers. Post introduction of annual information memorandum, a company will be able to cut on the fees paid to merchant bankers and lawyers for the issue.

“Currently, we have the concept of annual reports. The new mechanism is a step forward. Annual information memorandums would provide additional details like pending litigations, etc. The regulator would come up with a format for the memorandum soon. This will also help investors get all the information about a company at a single place,” said an investment banker who is part of the primary markets advisory committee (PMAC) of Sebi.

As per the current LODR regulations, a company needs to upload an annual report which should contain audited financial statements, cash flow statements,directors report and management discussion and analysis report. The top 500 listed entities in terms of market capitalisation should also disclose business responsibility report describing initiatives taken by them from an environmental, social and governance perspectives.

In October 2015, Sebi had introduced the concept of abridged prospectus that companies need to file for public offers. Under this mechanism, any company going for an IPO needs to file an abridged prospectus along with the regular draft red herring prospectus (DRHP). The abridged prospects would be a 10-page document which would provide all the key information to the investor about the company. The decision was taken in the interest of investors as the full DRHP of a company runs into 400-500 pages.

Source: http://www.financialexpress.com/article/industry/companies/listed-companys-documentation-may-get-simpler/273624/

Company Law Tribunal benches ‘will be fully functional’ in next few days

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All the 11 benches of the newly constituted National Company Law Tribunal (NCLT) will be fully functional in the next “couple of days”, a top Corporate Affairs Ministry (MCA) official said.

Infrastructure is ready in all the 10 cities where the NCLT benches are being set up. The human resources aspect has also been taken care of and adequate steps are being taken to start work immediately.

To begin with, NCLT will handle all pending cases before the Company Law Board and other matters not assigned to any other Court, the official said.

“There will be no transition problem for existing CLB cases,” the official added.

As on date, as many as eight members have joined NCLT, out of approved 25 members. “The remaining members are expected to join in the next few days. They will be posted in various benches,” the official said.

The MCA has also planned a 10-day colloquium in July for the NCLT members, the official added. Asked about the status of cases before High Courts (company cases), the MCA official said the High Court will be the second stage of transfer.

“We will let the CLB cases transition to stabilise for some time and then, in discussion with NCLT Chairman, decide on the High Courts related matter,” the official said.

The creation of NCLT from June 1 is expected to speed up delivery of justice in corporate cases. Sai Venkateshwaran, Partner and Head, Accounting Advisory Services, KPMG in India, hailed the MCA move to set up NCLT and NCLAT.

“We can expect to see the new Companies Act become a reality in its entirety in the coming months,” Venkateshwaran said. The time required for setting up of the NCLT and NCLAT was one of the key reasons for the Companies Act 2013 not being fully operationalised, he said.

However, with the setting up of these tribunals, the way has been paved for operationalising most of the remaining parts of the Companies Act 2013, he added. .

Meanwhile, the Company Law Board hearing in the Financial Technologies’ Board removal case did not take place on Thursday as the CLB stood dissolved on May 31 by virtue of the government move to set up NCLT from June 1.

Indications are that an NCLT bench will hear this matter in the coming days, sources said.

Source: http://www.thehindubusinessline.com/todays-paper/tp-news/company-law-tribunal-benches-will-be-fully-functional-in-next-few-days/article8688161.ece

Corporate Affairs Ministry again extends statutory filing deadline amid MCA21 woes

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Extending the deadline for the third time, Corporate Affairs Ministry has now given time till July 7 for companies to submit their statutory filings as issues related to MCA21 portal are yet to be fully resolved.

MCA21 is used for making electronic filings under the Companies Act and is managed by Infosys  for the ministry.

The upgraded system went live in the last week of March and stakeholders have been facing issues in using the portal.

The Ministry has extended the filing deadline for the third time in less than two months.

Initially, the extension was till May 10 and later the deadline was fixed for June 10.

Giving more time, the Ministry has extended the time limit for making the requisite filings under the companies law to July 10.

“…keeping in view, requests received from various stakeholders, it has been decided to extend the period for which the one time waiver of additional fees is applicable to all e-forms which are due for filing by companies between March 25 to June 30, 2016 as well as extend the last date for filing such documents and availing the benefit of waiver to July 7, 2016,” it said in a communication dated May 31.

While the communication does not mention anything about MCA21, Ministry officials expect to resolve the issues related to the portal soon.

On April 6, an Infosys spokesperson had said it was working with the Ministry to resolve the “minor teething problems” related to MCA21.

The portal is designed to fully automate all processes related to enforcement and compliance of legal requirements under the Companies Act.

Meanwhile, the Ministry has also extended the time limit for submitting Form 11 of LLP in respect of 2015-16 financial year without any additional fees to June 30.

Form 11 is for filing annual returns LLPs.

Source: http://economictimes.indiatimes.com/articleshow/52556624.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

Rs 3,770-cr nod for Chennai Metro project

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The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an investment of Rs 3,770 crore for development of the first phase of the Chennai Metro Rail project.

The 9.051 km corridor between Washermanpet and Wimconagar will be executed by Chennai Metro Rail Ltd (CMRL), the existing special purpose vehicle (SPV) of the centre and the state government with equal share of equity.

“The project is scheduled to be completed by March 2018. This extension will provide improved access to public transport for dense population comprising predominantly industrial workers to move towards the central business district of the city for work,” said an official statement.

The centre will have a share of Rs 713 crore in the total project cost while the state government’s share would stand at Rs 916 crore.The state’s share includes Rs 203 crore as cost of land acquisition and resettlement and rehabilitation (R&R).

The balance amount of Rs 2,141 crore for the project would be sourced as loan from domestic or multi-lateral funding agencies. The project is estimated to have a ridership of 160,000 passengers per day in the first year of operation.

Source: http://www.business-standard.com/article/economy-policy/rs-3-770-cr-nod-for-chennai-metro-project-116060101427_1.html

 

Danish companies keen to take part in Make in India

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Denmark-based companies such as Danfoss, Grunfdfoss, sRamboll, Novo Nordisk and Novozymes are eyeing the benefits of Narendra Modi’s Make-in-India programme to set up their base in the country.

 

Indian ambasssador to Copenhagen Rajeev Shahare said Denmark has embarked on a number of steps to be ahead of the curve in doing business with India. “The Danish Confederation of Industries (DI) has an office in Mumbai; the Danish Trade Council (part of its Ministry of Foreign Office) has a strong representative office in Bangalore; Asia House in Copenhagen has commissioned a study on how to effectively participate in the Smart Cities project in India,” the ambassador told FE.

 

While many big companies like Danfoss and Carlsberg already have their units, some others are in the process of doing so. “One company is setting up a unit in Hyderabad for manufacturing of ocean cleaning pumps and equipment; another consulting company is exploring Mumbai for its regional office,” he said.

 

The Scandinavian country is keen on setting up production facilities in India taking advantage of India’s low cost of production, availability of technical and English speaking manpower and a compatible working environment, he added.

 

India can also partner Denmark and learn from its best practices in areas like health services, food technology, dairy management, agro services, solid waste management and waste water management.

 

There are around 125 Danish companies in India and probably all top companies have a strong presence — the shipping giant Maersk (AP Moller) which also developed the Pipavav port and is now looking for investments in ports on the eastern coast; Danfoss, Grunfdfoss, Ramboll, leading pharma company Novo Nordisk etc. The Danish companies operating in India are directly or indirectly providing around two lakh jobs to locals here.

 

According to Statistics Denmark, the Danish FDI in India was $854 million in 2014, $731 million in 2013 compared to $931 million in 2012 (up from $877 million in 2011). Major Danish investments in India have been made in sectors such as manufacturing, trade and transport, financial and business services.

 

On the other hand, the Indian investment in Denmark were $71 million in 2014, $89 million in 2013 compared to $103 million in 2012 (up from $112 million in 2011) (Source: Statistics Denmark). Around 30 Indian companies have a presence in Denmark. Of them, 24 are IT companies, two belong to life sciences field and four are diversified mainly in the renewable space.

 

There are some major success stories of companies from Denmark that need to be highlighted. “The largest Danish bank- Danske Bank has all its back end operations in India; the entire Kommune (municipal) operations of KMD are handled by an Indian software company,” according to Shahare.

Source: http://www.financialexpress.com/article/industry/companies/danish-companies-keen-to-take-part-in-make-in-india/269514/

Japanese investors keen on India’s infra growth story: Arun Jaitley

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TOKYO: Japanese conglomerate SoftBank and a number of investors here have shown keen interest in investing in India’s “infrastructure growth story”, Finance Minister Arun Jaitley said today as he kicked off his 6-day visit to Japan aimed at attracting investments from Asia’s second biggest economy.

After a meeting with Jaitley, SoftBank Group CEO Masayoshi Son said he is also interested in Internet companies as well as solar energy sector, where he has already announced $20 billion investment through a joint venture.

“There are people who want to participate in infrastructure growth story. For example, at the SoftBank meeting we just had, they are looking at one of the biggest investments in solar power already,” Jaitley said after meeting Son.

“There are people who want to participate in infrastructure growth story. For example, at the SoftBank meeting we just had, they are looking at one of the biggest investments in solar power already,” Jaitley said after meeting Son.

In June last year, SoftBank announced that the group was forming a joint venture with Bharti Enterprises and Taiwan’s Foxconn Technology Group to invest about $20 billion in renewable energy in India. The JV would aim to generate 20 gigawatts of electricity.

“They have made considerable headway and have identified location. It will probably be one of the largest investment in those areas,” Jaitley said.

The Japanese telecom and Internet giant has made a string of tech investments in India, amounting to $2 billion in the past two year. SoftBank is looking at accelerating the pace of investments in the future.

“India has a great future… We are interested in investing for Internet companies, also for solar energy. We would make a strong commitment,” Son said.

He had previously said that India’s market is poised for massive growth, making it an important destination for investors.

SoftBank’s investments in the past two years include $627 million in online-retailing marketplace Snapdeal and leading a $210 million funding round in taxi-hailing app Ola Cabs.

It paid $200 million for a 35 per cent stake in InMobi, an Indian mobile-advertising network, starting in 2011.

SoftBank also has a JV with Bharti Group, Bharti SoftBank, the investments of which include the mobile application Hike Messenger. Its other investments include real-estate website Housing.com, hotel-booking app Oyo Rooms and Grofers.

Son had previously predicted that India’s e-commerce industry would become a $500 billion business in the next 10 years.

SoftBank, which owns one of Japan’s biggest mobile carriers and a controlling stake in US-based Sprint Corp, has been moving quickly to expand its Internet and media holdings.

As the largest shareholder in Alibaba Group Holding Ltd, the Chinese e-commerce company, SoftBank has ample resources to deploy for acquisitions.

Source: http://economictimes.indiatimes.com/articleshow/52491788.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst