German auto major Volkswagen rolled out its 1-millionth car from its Pune facility, which was commissioned in 2010. The 20,000 cars per annum Pune plant produces four models --the Polo, Ameo and Vento and the Skoda Rapid. Besides meeting the local demand, the facility also exports to some 50 countries across Asia, Africa, North America and South America. The German auto giant is the world's largest auto company by volume.
Jet Airways is in talks with the International Air Transport Association (IATA) to clear some refunds from the money lying in the billing and settlement plan (BSP) account. The global lobbying body on Thursday suspended all ticketing activities and transactions of Jet Airways via its clearing house. This means travel agents would immediately suspend all ticketing activities on behalf of Jet Airways including the use of all automated systems for processing of refunds or other credit/debit transactions on behalf of the airline. Thousands of passengers whose tickets have been cancelled will have to wait indefinitely for refunds.
Investors across the country are alarmed at the Income Tax Department’s move to seek details of investments made in unlisted companies in the tax return forms. The IT department has asked individual assesses to provide details of their investments in private companies or directorship in such companies in the new tax return forms. Investors are wary of the taxation problems that may arise in the future amid intense scrutiny by the department. Many of them are rushing to sell or transfer the shares and resign from the boards before they file their returns.
State-owned Air India is staring at debt repayments of Rs 9,000 crore in the current fiscal year but lacks the funds to service them. No decision on a possible government bailout package is likely until the elections are over. The Ministry of civil aviation and the airline have escalated the concern to the finance ministry. Air India has been losing about Rs 6 crore daily on international flights to Europe and the US due to airspace closure by Pakistan in the wake of border tensions. The losses have forced the airline to cancel a few overseas flights.
More than a day after Jet Airways announced that it would temporarily cease operations from April 17 amid a severe fund crunch, passengers across the globe have been left in the lurch. The sudden grounding of Jet Airways has hit budget travellers the most because there is no clarity on when the refund would be processed and there is also a spike in air fares. The 15-day advance fares have gone up by 5-10% while three-day advance fare levels have shot up by 25-30%.
Insurance Regulator IRDAI last week in a circular, has asked general and life insurers to provide clear and transparent communications and enable a tracking mechanism. The regulator has directed all insurers to send all communication relating to issuance and servicing of insurance policies in the form of a letter, an email, SMS or any other electronic mode. All insurers have been asked to notify about the status of the claim at various stages of its processing such as inclusions/exclusions, documents required for processing claims, timeline on servicing claims and finally rejection of proposals and reasons for the same.
Unfazed by the ban on TikTok in India, the popular Chinese short video app's parent firm ByteDance remains very optimistic and plans to invest $1 billion in the country over the next three years. SoftBank backed ByteDance is touted to be among the world's most valuable startups. The company would also be increasing the number of employees in India to 1,000 people by the end of this year. TikTok, which allows users to create short videos and share them, has more than 120 million users in India and is popular among youngsters.
Amazon and Google on Thursday announced a partnership that would allow each other's streaming media applications to work on their platforms. Following the agreement, official YouTube apps will be available on Amazon's Fire TV in the coming months, allowing users of the Amazon platform to access music videos, movies, shows and other content from the Google-owned service. Fire TV users will be able to sign in to their existing YouTube account and access their full library of content.
The Competition Commission of India has cleared acquisition of 7.30% equity stake in Kishor Biyani-led Future Retail by Future Coupons Ltd (FCL) through conversion of equity warrants. FCL will be allotted 3.96 crore equity warrants of Future Retail, priced at Rs 505 apiece aggregating to over Rs 2,000 crore. Each warrant will be convertible into one equity share of a face value of Rs 2 each within a period of 18 months.
The income tax department on April 18 proposed change in the methodology for taxing multinational companies, including digital firms, having permanent establishment in India. MNCs that are incurring global losses or a global profit margin of less than 2% and have continuing operations in India will be deemed to have made a profit of 2% of Indian revenue or turnover and will be taxed accordingly. An MNC having a fixed place of business in India is considered as having Permanent Establishment (PE) in India.
National carrier Air India on April 18 offered special fares to stranded international passengers hit by the abrupt grounding of Jet Airways. The "special stranded" fares have been offered to passengers at overseas airports such as Paris, London Heathrow, Singapore, Dubai, Hong Kong, Abu Dhabi, Jeddah, Dammam, and Muscat, among others. Passengers holding confirmed RT tickets on Jet Airways will be allowed to avail special stranded passenger fares from the destinations common with Air India.
Haldiram Snacks has submitted its expression of interest to acquire the debt-laden Kwality Dairy, which is facing insolvency proceedings. The bidders include TPG Capital, JK Group’s LVP Foods, IndiaRF — a joint venture between Piramal Enterprises and Bain Capital Credit. Private equity firm KKR, which invested Rs 520 crore in 2016 to finance Kwality Dairy’s foray into the consumer segment, initiated bankruptcy proceedings against the dairy maker in October last year. The resolution plan has to be submitted by May 15 and the total financial creditor claim submitted is Rs 2,100 crore.
Infrastructure firm Larsen & Toubro (L&T) on Thursday said its heavy engineering arm has won various contracts for supply of critical reactors, equipment and systems for Process Plant sector. The company did not provide value of the contracts but said the orders fall under "significant" category which ranges between Rs 1,000 crore and Rs 2,500 crore as per its classification of contracts. The company said orders from international clients are mainly from the US, Europe, Middle East and South East Asia.
Ace investor Rakesh Jhunjhunwala says India will record its best ever economic growth over the next 10 years due to the long-term economic benefits arising from GST, demonetisation and other big economic reforms. He also expects huge growth in capital expenditure and foreign investment in the coming decade. However, Jhunjhunwala said he was surprised by the recent rally in stock markets globally. Foreign institutional investors (FII) have poured over Rs 61,000 crore in Indian equities so far this year as against an outflow of Rs 32,600 crore in 2018.
An arbitrage fund is a category of equity mutual fund that exploits the price differential between the cash and derivatives market to generate returns. The fund manager simultaneously buys shares in the cash segment and sells futures in the derivatives segment of the same company as long as the futures are trading at a reasonable premium. Arbitrage funds are treated as equity funds for taxation purpose since they maintain an average exposure of more than 65% to equity. Their holding period for long-term capital gain is one year.