WEDNESDAY, 20 JULY 2022

22 pages in 1 section www.business-standard.com

MUMBAI
~11.00
VOLUME XXVI NUMBER 237

THE MARKETS ON TUESDAY chg#

Sensex 54,767.6 p 246.5

Nifty 16,340.5 p 62.0
Nifty Futures* 16,347.0 p 6.4 ECONOMY & PUBLIC AFFAIRS P8 WORLD P10
Dollar
Euro
Brent crude ($/bbl)
~80.0
~81.9
110.8 ##
~80.0
~81.2 **
110.5 **
THERE’S FEAR OF LANKA CRISIS APPLE FOLLOWS FELLOW TECH
Gold (10 gm)### ~50,475.0 p
*(July) Premium on Nifty Spot; **Previous close;
# Over previous close; ## At 9 pm IST;
~11.0
SPILLOVER, SAYS JAISHANKAR GIANTS TO REIN IN HIRING
### Market rate exclusive of VAT; Source: IBJA P U B L I S HE D S I MU L T A N E OUSL Y F R O M AH M E D AB AD , B E NG AL UR U, B H UB ANE SW AR , CH AND I G AR H , CH E NNAI , H Y D E R AB AD , K OCHI, K OL K ATA, L UCK N OW , MUMBA I (AL SO P R IN TE D IN BHOP AL ), N E W DE L HI AN D P UN E

PHARMEASY PLANS
TO RAISE $200 MN AT
LOWER VALUATION
Indian drug and
medical services
start-up PharmEasy
is in talks with
investors to raise
$200 million, but at a
valuation that could
be 15 per cent or even 25 per cent lower
than last year's $5.1 billion, two people with
direct knowledge of deal talks told Reuters.
Signalling growing stress in India’s start-up
ecosystem, one source said PharmEasy,
backed by big-name investors such as
Prosus, TPG and Temasek, is in talks to
secure the new funds at a valuation as
much as 15 per cent below last year’s.
ED arrests former Mumbai
top cop Sanjay Pandey
The Enforcement Directorate (ED) on
Tuesday arrested former Mumbai Police
Commissioner Sanjay Pandey in conne-
ction with a money-laundering case
linked to the alleged illegal phone tapping
of NSE employees, officials said. The
retired 1986-batch Indian Police Service
officer was taken into custody by the
federal probe agency after more than
seven hours of questioning in the case. 8 >
Rupee breaches HUL beats estimates with
80/$ for 1st time ~2,381-cr net profit in Q1
Widespread inflation impacting consumer demand, says company
Regains ground to settle at 79.95 after RBI intervention SHARLEEN D’SOUZA
KEY FINANCIALS
Mumbai, 19 July
BHASKAR DUTTA In ~ crore % change
Mumbai, 19 July CURRENCY Hindustan Unilever (HUL), among
the country’s largest fast-moving con- Net sales
Q1FY22 Q4FY22 Q1FY23 QoQ YoY
12,004 13,490 14,357 6.4 19.6
TRAJECTORIES
T
he rupee on Tuesday weakened sumer goods (FMCG) players, beat
past 80 per dollar for the first time analysts’ estimates by posting a net PBIDT 2,960 3,437 3,523 2.5 19.0
Indian rupee has strengthened against PAT 2,097 2,304 2,381 3.3 13.5
but went on to recover lost ground profit of ~2,381 crore in the June
against the greenback owing to
major currencies except US dollar (~) quarter of 2022-23 (Q1FY23). Other operating income 190 277 267 -3.6 40.5
interventions by the Reserve Bank of India $/~ ¤/~ £/~ 70 Revenue on a consolidated basis
(RBI) and persistent sales of dollars by 79.95 too was above estimates. Other income 66 136 133 -2.2 101.5
75
2> exporters, dealers said. 74.34 80 Its net profit (attributable to Note: PBIDT: Profit before interest, depreciation and tax; PAT: Profit
after tax; Compiled by BS Research Bureau Source: Bloomberg
The rupee plunged to its lifetime low of owners of the company) rose 13.5 per
85
80.06 per US dollar in early trade before
84.21 81.87 90 cent year-on-year (YoY) compared “MARKETS, ESPECIALLY FROM THE LENS OF VOLUME, STILL
recouping all losses to close at 79.95. On
95
with ~2,097 crore in the year-ago REMAIN SOFT. INFLATION IS STILL VERY MUCH A CONCERN…
Monday, the domestic cur- period. Revenue rose 19.6 per cent YoY IT IS VERY IMPORTANT THAT WE MANAGE INFLATION”
rency had settled at 79.98 a
100.44 100 to ~14,357 crore in Q1 FY23 as against SANJIV MEHTA, CEO & MD, HUL
EDIT: dollar — an all-time closing 96.08 105 ~12,004 crore a year ago.
low. The rupee has depre- Dec 31,2021 Jul 19, 2022 According to a Bloomberg poll, ana- During the quarter, the company numbers were better than industry
CAUTION ciated 7.01 per cent against Note: Inverted scale Source: Bloomberg
lysts had estimated revenue at ~13,401 took a 12 per cent price increase across growth, with volume growth beating
OVER the dollar this year. crore and net profit at ~2,207 crore. its portfolio. Notably, HUL’s reported estimates of analysts. Turn to Page 8 >
RUPEE The government,
however, said the rupee
PAGE 11 was managed well and
there was nothing to be
“overtly” worried about the depreciation in
the domestic currency against the dollar.
The rupee had appreciated against several
FM defends GST hike on essentials
global currencies like the British pound,
Japanese yen, and Euro, and this had made
RUPEE @ 80 SHRIMI CHOUDHARY
New Delhi, 19 July
daily-use essentials and subsequent price rise.
The all-powerful GST Council, chaired
imports in these currencies cheaper com- LITTLE RELIEF ON THE CARDS by the Union minister, had last month
pared to the dollar, Economic Affairs FROM HIGH TRADE DEFICIT Union Finance Minister Nirmala decided to impose GST on some mass con-
Secretary Ajay Seth said on Tuesday. ~ FALL MAY HIT GOVT SIGNS OF LOWER Sitharaman on Tuesday said the mass con- sumption items to simplify the rate struc-
The falling rupee may adversely impact FINANCES WITH FY23 GDP AND sumption items such as pulses, wheat, rice, ture, which came into effect on Monday.
central government finances through a BALLOONING SUBSIDY BILL CORPORATE GROWTH flour, and curd will not attract the 5 per cent In a series of tweets, Sitharaman said this
higher subsidy bill, even though higher goods and services tax (GST) when sold decision was much needed to plug tax leaks.
import bill may yield additional government TOP INDIAN IT SERVICES, TECH INDUSTRY loose, and not pre-packed or pre- It was considered at various levels by officers,
revenues, economists said. FIRMS HAVE TO GET A LEG-UP labelled. The clarification came group of ministers (GoM), and finally recom-
While the rupee breached the psycho- NATURAL HEDGE amid protests and wide- mended by the GST Council. Turn to Page 8 >
logically significant 80-per-dollar mark on AGAINST FOREX DEFICIT TO HURT spread criticism by Oppo-
Tuesday, currency traders said a confluence ERODING RUPEE INDIA INC’S MARGINS sition Members of OPPN STALLS PROCEEDINGS OVER
of factors had lent support to the currency. Parliament over
Turn to Page 7 > PAGE 6-7 foisting GST on ‘UNPARLIAMENTARY’ GST HIKE P9
2 COMPANIES MUMBAI | WEDNESDAY, 20 JULY 2022

> Mindtree > Sterlite Technologies > Mahindra & Mahindra Financial > Tube Investments of India > Steel Strips Wheels
STOCKS 3,125 Partners Rubrik to 146.7 Bags ~250-crore deal 211
Partners Credgenics 2,280 Inks pact for acquisition 855 Reports lower net profit
IN THE NEWS 3,040.60
launch a unified
143.80 207.50
206 to boost digital
2,256.90 823.70
2,966.10 3,000 144.8 for building optical 2,170 of a 65% stake in 840 at ~48 crore in Q1FY23,
204.00 collections 1,989.90 843.60
2,855.50
2,875
cyber-recovery platform 142.00 network 201 lPLTech Electric 825
down 6% YoY
142.9 2,060
2,010.50
~3,040.6 CLOSE 144.60 ~143.8 CLOSE 204.20 196 ~207.5 CLOSE ~2,256.9 CLOSE 844.40 ~823.7 CLOSE
2,750 141.0 1,950 810
Jul 2022 Jul Jul Jul 2022 Jul Jul Jul 2022 Jul Jul
12 18 19 p2.5% UP* Jul 2022 Jul Jul
18 19
p1.23% UP* 12 18 19 p1.7% UP* Jul 2022 Jul Jul p12.3% UP* 12 18 19 2.4% DOWN*
*OVER PREVIOUS CLOSE 12 12 18 19
>

IN BRIEF
Review spectrum pricing DGCA grounds 2 Go First PharmEasy to
mechanism: CAG to DoT
raise $200 mn
The Comptroller and Auditor General (CAG) has pulled up the telecom
department for not finalising policy on spectrum assignment for
captive uses and flagged the absence of spectrum price review for
captive users administratively. In its report titled ‘Management of
spectrum assigned on the administrative basis to government
planes after engine snag at much lower
departments/agencies’, the CAG asked the Department of Telecom Both aircraft, with P&W engines, will fly only when cleared by the regulator
(DoT) to review the spectrum pricing mechanism for captive users to
incentivise ministries, departments, and agencies. PTI ANEESH PHADNIS
Mumbai, 19 July
n Both Go First aircraft
valuation
Ambuja Cements Q1 net profit CLIPPED reported faults in engine no. 2

T
he Directorate General of Civil
Aviation (DGCA) has ordered the
declines 14%, sales rise 15% grounding of two Go First Airbus
A320neo aircraft that suffered mid-air
Cement maker Ambuja, which was recently acquired by the Adani engine snags on Tuesday.
group, along with ACC, in a $10.5-billion deal, on Tuesday reported a A Go First aircraft operating a Mumbai-
14.2 per cent drop in consolidated net profit to ~752 crore for the first Leh flight was diverted to Delhi due to a
quarter, FY23, aganst the year-ago period. While the net profit was fault in the engine interface unit. In
ahead of Bloomberg consensus estimates, pegged at ~644 crore, another instance, a Delhi-bound plane was
sector analysts said the June quarter was impacted by a moderation forced to turn back to Srinagar due to snag.
in demand and elevated costs of power and pet coke. BS REPORTER “We are investigating the incidents.
Both aircraft will be grounded and will fly
only after clearance from the DGCA,” said
Simpliwork Offices takes on a senior executive.
The civil aviation regulator is likely to
lease 150K sq ft in Chennai seek details from engine manufacturers
about frequent snags and steps taken to
Coworking firm Simpliwork Offices on Tuesday said it had taken on rectify them. The regulator action follows
lease 150,000 square feet of office space in Chennai from DLF and its directive to airlines on Monday to
Mindspace Business Parks REIT to expand business. Bengaluru- deploy adequate aircraft maintenance
based Simpliwork Offices, which provides managed office space to engineers (AMEs) at all airports.
corporates, has taken on lease about 80,000 square feet from DLF Go First Airbus A320neo planes are
and about 70,000 square feet from Mindspace. The demand for powered by Pratt & Whitney (P&W)-geared
managed office space has increased during Covid. PTI turbofan engines. The airline has 57 air-
craft in its fleet — a majority of which are
of the A320neo variant. Around a dozen
Jio expands lead, adds 3.1 mn of its planes are already grounded as it
awaits delivery of upgraded version of
subscribers in May: Trai data engines. IndiGo has over 280 planes,
including 190 A320 and A321neos powered
Reliance Jio cemented its lead in the telecom market as it gained by P&W and CFM engines.
over 3.1 million mobile subscribers in May, according to data relea- Air India and SpiceJet’s narrow-body
sed by the regulator on Tuesday. Bharti Airtel added 1.02 million fleet of Airbus and Boeing planes are
subscribers in May, taking its mobile user tally to 362.1 million. equipped with CFM engines.
According to data by Telecom Regulatory Authority of India (Trai), Vistara’s Airbus and Boeing 737 planes
Reliance Jio’s mobile customer count went up to 408.7 million. are largely powered by CFM engines.
Vodafone Idea’s subscriber base slid to 258.4 million. PTI In the past few months, there have
been several instances of engine snags,
leading to commanded shutdowns during
Facebook co-founder’s firm flights or turn-backs to departing airports.
Last Friday, an IndiGo A320 aircraft oper-
B Capital closes $250-mn fund ating between Delhi and Vadodara was
diverted to Jaipur due to engine vibration.
B Capital, a venture capital firm co-founded by Facebook co- The incidents have prompted DGCA to
founder Eduardo Luiz Saverin and Bain Capital veteran Raj Ganguly, carry out spot checks at various airports.
said it is closing a $250 million Ascent Fund II, its first dedicated
early-stage fund. Ascent invests in pre-seed through series A
rounds globally, with an emphasis on the US and Asia. With
$6.5 billion in assets under management across multiple funds,
B Capital has backed Indian unicorns such as Byju's, Meesho,
BlackBuck and Dailyhunt. BS REPORTER Vedanta to pay ~19.50 a share as 2nd interim dividend
VIVEAT SUSAN PINTO
Passenger vehicle exports Mumbai, 19 July
jump 26% in Apr-Jun: Siam Metals and mining major
Vedanta announced a second
Passenger vehicle exports rose 26 per cent in April-June 2022 aided by interim dividend of ~19.5 per
enhanced shipments and a low base of the year-ago quarter that equity share on Tuesday, taking
was hit by the second wave of Covid-19. According to the latest data its total payout in two rounds
released by the Society of Indian Automobile Manufacturers (Siam), of dividends announced so far
passenger vehicle shipments rose to 160,263 units in the April-June in FY23 to ~18,960 crore. This is
period of this fiscal year compared with 127,083 units in the same ahead of its total dividend paid
quarter of 2021-22. Passenger car shipments saw an 88 per cent in FY22, which stood at ~16,740
year-on-year growth at 104,400 units. PTI crore, data compiled by BS
Research Bureau shows.
Vedanta's move comes close
Nasdaq-listed R1-RCM plans on the heels of the announce-
ment by its subsidiary,
to employ 3,000 by year-end Hindustan Zinc, last week of an
interim dividend of ~21 per
Technology-driven solutions provider and revenue cycle share. Hindustan Zinc had said
management company, Nasdaq-listed R1-RCM on Tuesday that its dividend payout would
inaugurated its new office in the city and has drawn up plans to add entail an outflow of ~8,873
3,000 people by end of the year, according to a top company official. crore. Vedanta has a 64.9 per
The company currently has presence in New Delhi National Capital cent stake in Hindustan Zinc,
Region, Hyderabad and Bengaluru with an employee base of over while the Government of
13,000, R1RCM Executive Vice-President-Global Operations and India India holds 29.5 per cent in the
Country General Manager, Abhijeet Pawar said. PTI company.
REUTERS
n The Mumbai-Leh flight was 19 July
WINGS diverted to Delhi
Indian drug and
n The Srinagar-Delhi flight medical services
returned to Srinagar after start-up
engine fault, mid-air PharmEasy is in
n Go First Airbus A320neo talks with inves-
tors to raise
planes are powered by
$200 million,
Pratt & Whitney-geared
but at a valuation that
turbofan engines
n The airline has 57
could be 15 per cent or even 25
per cent lower than last year’s
START-UP STREET
n Move could cut
aircraft in its fleet — a
majority of which are of the
$5.1 billion, two people with
direct knowledge of deal talks PharmEasy’s valuation for
the new funding round to
A320neo variant told Reuters.
Signalling growing stress in $3.8 billion
India’s start up ecosystem, one n Fund raising is set to see
These revealed that the cause of defects which is less than four years, and it is prob- source said PharmEasy, backed
participation from some
was not being properly identified. ably the youngest fleet in India,” the airline by big-name investors such as
Insufficient number of engineering per- had said in a statement last week. Prosus, TPG and Temasek, is in
existing investors, who
sonnel certifying planes of various carriers On July 17, IndiGo’s Sharjah-Hyderabad talks to secure the new funds have indicated they will
before take-off was another worry. flight was diverted to Karachi as a precau- at a valuation as much as 15 per commit about $115 million
It also found that airlines were giving tionary measure after pilots observed a cent below last year’s. in the new round
frequent one-off authorisations to certain defect in one engine. A second source said the n The digital pharmacy
junior-ranking engineers, flouting regula- On the night of July 16, the Calicut- company, which offers online
firm is in competition with
tions.
Before each departure, an aircraft is
Dubai flight of Air India Express was
diverted to Muscat after a burning smell
medicine deliveries and dia-
gnostic test services, has told
Reliance and Tata
checked and certified by an AME. The
DGCA has now issued guidelines for air-
in the cabin mid-air.
A live bird was found in the cockpit of
its bankers to consider even a
25 per cent reduction if needed to close the deal. That could cut
lines on the deployment of qualified AME the Air India Express Bahrain-Kochi flight PharmEasy’s valuation for the new funding round to $3.8 billion,
personnel and directed them to comply on July 15. SpiceJet is also under the and the sources said an initial public offering (IPO) first targeted
by July 28. scanner. On July 6, the DGCA issued a for 2022 has been delayed.
The spot checks also found that AME show-cause notice to SpiceJet, following Sources declined to be named as the talks on raising funds
teams of airlines are improperly identify- at least eight incidents of technical mal- were private. PharmEasy’s planned fund raising is set to see
ing the “cause of a reported defect”, the function in its aircraft since June 19. The participation from some existing investors, who have indicated
DGCA order noted. DGCA is investigating all these incidents. they will commit about $115 million in the new round, said the
P&W did not issue a statement on There have been multiple technical first source involved in the talks. API Holdings, PharmEasy’s
Tuesday’s incidents, but sources said it is malfunction incidents in planes flown by parent company which is looking to raise the funds, declined
working with Go First to address the chal-
lenges. Go First, too, did not issue a state-
Indian carriers in the past one month.
Over the past three days, Aviation
to comment. API owns other businesses including diagnostic
test provider Thyrocare.
ment on Tuesday. “For Go First, maintain-
ing the reliability of aircraft and safety of
Minister Jyotiraditya Scindia has held
multiple meetings with airlines and offi-
The company had seen its valuation jump in recent years in
a boom moment for the country’s start-ups in general and a
our passengers is our priority. Go First has cials from his ministry and DGCA officials growth surge in its own sector, where rivals include Reliance’s
a fleet of 57 aircraft — the average age of to ensure safety oversight. Netmeds, Tata’s 1mg and Walmart’s Flipkart.
The current round of div- AT A GLANCE when the dividend payout ratio
idend payout by Vedanta, on
the other hand, would entail an
Vedanta’s dividend payouts in
was 35.55 per cent.
FY23 could mirror the trend
the last six years (in ~ cr)
of outflow of ~7,250 crore, it
informed the stock exchange
seen in FY22, analysts and cor-
porate governance experts had
FY18 7,881
on Tuesday. In April, the com- told Business Standard, as
pany had announced its first FY19 7,005 some companies grappled with
interim dividend at ~31 per a lack of good investable oppor-
share, resulting in an outflow FY20 1,696 tunities, forcing them to redis-
of ~11,710 crore. tribute their profits as div-
The dividend announce- FY21 3,519 idends. Still others were
ments by Vedanta come at a FY22 16,740 looking to continue rewarding
time when Vedanta Resources, their shareholders such as the
which owns 69.7 per cent of FY23* 18,960 government, who were major-
Vedanta, has been looking to *Dividend announced so far in two rounds
ity stakeholders in their com-
deleverage its balance sheet.
Ratings agency Moody's
Compiled by BS Research Bureau
Source: Capitaline
panies. While some other
players were looking to help
had said in a recent report that
the holding company (Vedanta an outflow of ~11,710 crore (or nancing risk tied to the holding Corporation, Hindustan
their parent firms deleverage
their balance sheets.
Resources) had set a target of $1.56 billion), Moody's said. Of company’s debt maturities in Unilever, Hindustan Zinc, ITC, Vedanta shares ended trade
$4 billion (~32,000 crore based this, ~8,162 crore (or $1.08 bil- the first half of FY23,” Moody’s SBI and Reliance Industries on Tuesday at ~238.60 apiece,
on the current exchange rate) lion) was received by its holding said. among others in the top 20 list. marginally up over Monday’s
by way of deleveraging in the company Vedanta Resources. Vedanta was the top div- Cumulatively, the top 20's close of 0.51 per cent.
next three years. "The large cash dividend is idend-paying firm in FY22, fol- dividend outgo in FY22 stood Subsidiary Hindustan Zinc, on
In April, Vedanta had credit positive for Vedanta lowed by companies such as at ~1.66 trillion, translating into other hand, closed trade up 1.72
announced an interim div- Resources because it staves off TCS, ONCG, HCL a dividend payout ratio of 37.18 per cent over the previous day's
idend of ~31.5 per share, with some of the liquidity and refi- Technologies, Indian Oil per cent, higher than FY21 close, at ~298.60 apiece.

5G players get ready for long road to seamless network good thing is that ARPUs are high,
ranging from ~500-1000, much more
than generated from mobile.
But the penetration of fibre to the

Mobile operators say 5G roll-outs will be far slower
than 4G’s and will be limited to key circles at most
SURAJEET DAS GUPTA
New Delhi, 19 July
So just how big will the 5G mobile
market really be? Mobile operators are
not too bullish about the initial
numbers. They fear that
lack of killer ‘use cases’,
even globally, could stymie
the speedy conversion of
customers to the new
service and also keep
average revenue per user
(ARPU) stagnant, despite
the large incremental
investment required (about
~60,000 crore per player).
They say 5G roll outs will
be far slower than of 4G and will be
limited to key cities and circles at
most. Of course, 4G, will continue to
remain the backbone of revenue
generation, as well as subscribers, for a
long while. Operators say it could take
four to five years at least to build a
reasonable sized pan-India 5G network
with good coverage.
But there are some clear plus
WHAT PROJECTIONS many ‘use cases’ which can generate
money but that telcos have to take
home due to problems of right of way
has been pretty slow. The total number
SAY ABOUT USERS a call.
UBS points out that, based on global
of subscribers on Jio and Airtel is only
12 million.
| UBS projects around 50 million
trends, it believes that 5G will be at a 20 The other big area is services such
5G subscribers in India by 2024
points. Unlike 4G where the market per cent premium over 4G. as augmented reality and virtual
and 250 million by 2027
had to be built from scratch, for 5G Also, with Vodafone Idea unable to reality on the mobile phone for which
there is already a large addressable | Addressable market of 5G phone launch meaningful 5G services, this customers would be ready to pay. It can
market of customers with a 5G phone users is 150-170 million by would allow Reliance Jio and Airtel to be used to watch movies, shop, and
around, even before the network is the end of 2023 gain market share. play games.
built and ready to be tapped. These | The addressable market of One such ‘use case’, say telecom For this to happen, 5G mobile
customers are expected to FWA services is 110 million gear makers is Fixed Wireless Access phones need to be powered on the
number around 150-170 pay TV homes, going up to (FWA) which could accelerate the slow millimetre band (most are not) which
million by 2023, in the first 200 million overall process currently underway of offers high speeds. If chip makers are
year of the launch. | Global Data says that by 2026, deploying high speed broadband in to be believed, it is already work in
What’s more, there will 5G will account for 38% of the homes by replacing the last mile fibre progress, provided customers are
still be over 500 million total mobile revenues. In the with 5G wireless spectrum. prepared to pay a premium
more smart phones users in same year the global average from It has already become MANY STAKEHOLDERS, on the phone.
other bands who again could 5G will be 64% the most sort after use case INCLUDING CHIP Analysts say that, unlike
be nudged to shift when they for 5G with over 83 5G MAKERS AND TELECOM in many other countries,
upgrade to a 5G phone in the operators worldwide GEAR MANUFACTURERS, ARPUs will go up in India
PART-III next one to three years. total base. companies in the calendar year 2021. already offering SAY THERE ARE ALREADY not by increasing the 5G
But if anyone is thinking Research agency OMDIA is slightly But Global Data says this will hit $9 residential or business MANY ‘USE CASES’ tariff over 4G, but by
of a dramatic shift of subscribers and more optimistic, saying India can billion in 2026, which will account for FWA. WHICH CAN GENERATE increased consumption
revenue from 2G, 3G and 4G to 5G, they expect to have over 369 million 5G 38 per cent of the total mobile It could be a big market MONEY BUT THAT TELCOS due to what the new
have got it all wrong. In its latest customers by 2026 (30 per cent of total revenues. in India too. There are over HAVE TO TAKE A CALL technology can offer.
estimates a few days ago, UBS subscribers) while Global Data puts the Globally, telecom operators will 100-110 million homes Estimates by Nokia say
projected that there will be around 50 number at 329 million. generate over 64 per cent of their which have pay TV as an that the amount of data
million 5G subscribers in India by In terms of revenue share, the story revenues from 5G by the same year — addressable market to tap for usage per consumer will go up from 20
2024, accounting for only 4 per cent of is the same. Global Data projects a much higher than in India. broadband to home with GB to over 50 GB in 2027. If new uses
the total base, although this will grow marginal revenue of $2.3 billion in Many stakeholders including chip entertainment built in. cases are added, it could rise even
to around 250 million by 2027, 2023, which is a mere 7 per cent of the makers and telecom gear Then there is an even larger market further. Once again, it’s up to mobile
accounting for 20 per cent of the total gross revenue of telecom manufacturers say there are already of over 200 million TV homes. The players to seize the opportunity.

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.
MUMBAI | WEDNESDAY, 20 JULY 2022 COMPANIES 3 <

HDFC Life’s Q1 net

Grasim enters B2B
Private sector insurer HDFC Life’s net
profit surged 21 per cent year-on-year
(YoY) to ~365 crore in the April-June
profit surges 21% quarter (Q1) of the 2022-23 financial year
(FY23), aided by lower mortality reserves
ness (VNB). In the year-ago period, it had
reported a net profit of ~302 crore.
Its VNB increased by 25 per cent to
~510 crore in Q1FY23 over the same period
a year-ago and annulaised premium
~1,904 crore, also in the same period.
VNB margins, a measure of profitabil-
ity of life insurance companies, of the
insurer stood at 26.8 per cent in Q1FY23,
up 60 basis points from Q1FY22.

e-commerce in to ~365 crore and a healthy jump in value of new busi- equivalent (APE) grew 22 per cent to BS REPORTER

building material
DEV CHATTERJEE space. “The building materials segment
Mumbai, 19 July presents a huge scalable business oppor-
tunity with a proven path to profitability.

G
rasim Industries, an Aditya
Birla group company, today
approved its foray into B2B e-
commerce in the building materials
segment with an investment of ~2,000
crore over the next five years.
This investment adds a new high-
growth engine with clear adjacencies
within Grasim’s standalone businesses
as also that of its subsidiaries and asso-
ciate companies. The company is
spending ~10,000 crore in new paints
business and will launch its products
by early 2024. The group owns India's
largest cement company with a capac-
ity of 120 million tonnes per annum.
Kumar Mangalam Birla, Chairman of
the $60 billion revenue Aditya Birla
Group, said the B2B e-commerce foray
is yet another strategic portfolio choice
as it crystallises the group’s intent to
invest in the new-age, high growth digital
With this foray, Grasim would be able to
leverage the large B2B ecosystem within
the Aditya Birla Group,” Birla said.
This move will also catalyse the
growth of the MSME universe in India
and provide an impetus to the Govern-
ment’s vision of ‘Digital India’, he said.
The overall building materials pro-
curement segment in India has grown at
an annual rate of 14 per cent in the last 3
years. This industry is estimated at about
$100 billion with current digital penetra-
tion of just 2 per cent.
The platform will primarily focus on
medium- and small-sized companies in
the building materials segment with the
potential to further extend to other rel-
evant categories. The key value proposi-
tion would be an integrated procurement
solution, including on-time delivery and APPOINTMENTS
a superior product range at competitive
pricing.

Amul posts ~61K-cr

turnover in FY22
VINAY UMARJI
Ahmedabad, 19 July
Celebrating 75th year of its cooperative
movement, Amul has clocked a group
turnover of ~61,000 crore for financial
year (FY) 2021-22, further consolidating
its position as the largest food and
FMCG brand in India.
Currently ranked as the eighth
largest dairy organisation in the world,
the Gujarat Cooperative Milk Marketing
Federation (GCMMF), which owns and
markets products under the brand
name Amul, added another ~8,000
crore to its group turnover in 2021-22.
According to the federation, the
growth in its turnover came on the back
of rapid post-pandemic recovery in out-
of-home consumption and demand
from restaurants, catering, travel and
hospitality segments.
“As we move beyond the pandemic,
consumers are rewarding us by display-
ing higher preference for brand Amul.
As out-of-home consumption returns
to normalcy, restaurants are witnessing
higher footfalls, travel and tourism has
resumed and so have functions and
gatherings. The combined impact of all
these factors is resulting in high growth
across most product categories,” said R
S Sodhi, managing director of GCMMF.
According to Sodhi, while Amul’s
milk-based beverages business grew by
36 per cent in value terms, its ice-cream
business also saw 50 per cent value
growth.
4
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1
TENDERS & NOTICES
.
MUMBAI | WEDNESDAY, 20 JULY 2022 5
<

KOTAK MAHINDRA BANK LIMITED

Registered Office: 27BKC, C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai- 400051, (MH).
Regional Office: 6th, Floor, Phase: 2, 27-BKC, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, (MH).
POSSESSION NOTICE
Publication of Notice regarding Possession of Property u/s 13(4) of SARFAESI Act 2002 r/w. Rule 8(1) thereunder.
Notice is hereby given under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act) and in exercise of powers conferred under Sections 13 (2) and 13(12) read with Rule 3 of the Security Interest (Enforcement)
Rules, 2002, a demand notice was issued to the under-mentioned borrowers on the dates mentioned against each account calling upon them
to repay the amount within 60 days from the date of receipt of said notice.
The Borrowers / Guarantors having failed to repay the amount, notice is hereby given to the Borrowers / Guarantors and the public in general
that the undersigned has taken Possession of the property described herein below in exercise of power conferred on him/her under sub
section (4)of Section 13 of the SARFAESI Act read with Rule 8 of the Security Interest (Enforcement) Rules, 2002 on the dates mentioned
against the account.
The Borrower(s)/ Guarantor(s) in particular and the public in general are hereby cautioned not to deal with the properties and any dealings with
the properties will be subject to the charge of the Bank for an amount mentioned below and further interest thereon.
The Borrower(s)’/ Guarantor(s)’ attention is invited to provisions of sub-section (8) of Section 13 of the Act, in respect of time available to redeem
the secured asset.
Name of Borrower Name of Partners / Guarantors/ Description of the Property Date of Date of Amount
& Address Mortgagor etc. Mortgaged/ charged Demand Notice Possession Outstanding
M/s. Madan Traders 1) Mr. Madan Gangaram Kale Rs.69,24,207.44
Apartment No. VS-2/21/A-1,
Represented by its (Guarantor/ Mortgagor) 2) Mr. Dinesh (Rupees
adm. 32.86 Sq. mtrs of built
Partners Taware (Guarantor), 3) Mr. Sopan Sixty Nine Lakhs
up area on the ground floor,
1) Mr. Madan Yerande (Guarantor) 5) M/s. Sagar Twenty Four
Building No. VS-2/21, Plot
Gangaram Kale Enterprises (Gurantor/ Mortgagor) Thousand Two
No. 3A, Gat or Survey 108
2) Mr. Dinesh Taware, All having office at Gala No. 177, 16.08.2021 16.07.2022 Hundred Seven
part, 114 part, 115 part
having office at Gala APMC Market, Onion Potato Division, and Paisa Forty
Vashi, Navi Mumbai - 400703 and and other Land in Village Four Only)
No: 177, APMC
Residence at House No. 03188, At Juinagar, Vashi Navi Mumbai, as of 12.08.2021
Market, Onion Potato
Post Thugaon, Tal: Ambegaon, Dist.: Tal & Dist.- Thane (Owned By with further
Division, Vashi, Navi
Pune, MH-410503 Mr. Madan Gangaram Kale) interest thereon.
Mumbai- 400703.
Date: 16/07/2022 sd/-
Place: Vashi (Authorized Officer) KOTAK MAHINDRA BANK LTD.

District Deputy Registrar Co-Operative Societies,

Mumbai City (3) Office of the Competent Authority
under section 5A of the Maharashtra Ownership Flats Act, 1963,
MHADA Building, Ground Floor, Room No.69, Bandra (E), Mumbai 400 051.
No.DDR-3/Mum/Deemed Conveyance/Notice/2022/2226 Date:- 18/07/2022
FORM X
[See rule 13(2)]
Form of Notice to the concerned parties.
Application u/s 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction.
Sale, Management and Transfer) Act, 1963
Application No. 77 of 2022
Dev Plaza Premises Co-op. Soc. Ltd.,
Final amalgamated Plot No.68A of TPS VI Andheri,
CTS No.596, 596/1 to 13, Ghodbunder Road,
S.V.Road, Andheri (West), Mumbai-400 058. ... Applicant
VS
1. Dr. Natwarlal D. Joshi (Since Deceased)
Through his Legal heirs,
a) Nita U. Gandhi,
th
Parvati Apartment, 4 Floor, Behind Dev Plaza,Opposite Andheri
Fire Brigade, S.V. Road, Andheri (West), Mumbai – 400 058.
b) Yogen N. Joshi
Parvati Apartment, 3rd Floor,Opposite Andheri Fire Brigade,
S.V. Road, Andheri (West), Mumbai – 400 058.
c) Sharad N. Joshi,
Parvati Apartment, 4th Floor, Opposite Andheri Fire Brigade,
S.V. Road, Andheri (West), Mumbai 400 058.
2. Hatane Premises Pvt. Ltd,
Flat No.68-A, S. V. Road, Joshi Estate, Andheri (West),
Mumbai – 400 058.
3. M/s. Dev Constructions
th
Through its sole Proprietor Mr. Vijay Thakkar, 10 Floor,
Dev Plaza, Opposite Andheri Fire Brigade, S. V. Road,
Andheri (West), Mumbai – 400 058.
4. Om Joshi Apartement Flat Owners Co-op. Soc. Ltd.,
Ghodbunder Road, S.V. Road,
Andheri (West), Mumbai – 400 058. ... (Opponent/s)
PUBLIC NOTICE
1) Take the notice that the above application has been filed by the applicant under
section 11 under the Maharashtra Ownership Flats (Regulation of the
Propmotion of Construction, Sale, Management and Transfer) Act, 1963 and
under the applicable Rules against the Opponents above mentioned
2)The applicant has prayed for grant a Certificate of entitlement Unilateral
Deemed Conveyance of the land Dev Plaza Premises Co-op. Soc. Ltd., along
with building standing thereon situated on part of property bearing Final
amalgamated Plot No.68 A of TPS VI Andheri corresponding to CTS No.596,
596/1 to 13 admeasuring about 4658.38 sq.mtrs. out of 5865.50 sq.mtrs. of
Village Vile Parle (w), Taluka Andheri in the Registration District and Sub
District of Mumbai Suburban and Mumbai City situated at Ghodbunder Road,
S.V.Road, Andheri, Mumbai favour of the Applicant Society.
3) The hearing in the above case has been fixed on 11.08.2022 at 3.00 p.m.
4) The Promoter / Opponent/s and their legal heirs if any, or any person / authority
wishing to submit any objection, should appear in person or through the
authorized representative on 11.08.2022 at 3.30 p.m. before the undersigned
together with any documents, he/she/they want/s to produce in support of
his/her objection / claim/ demand against the above case and the applicant/s
is/are advised to be present at that time to collect the written reply, if any filed
by the interested parties.
5) If any person/s interested, fails to appear or file written reply as required by this
notice, the question at issue / application will be decided in their absence and
such person/s will have no claim, object or demand whatsoever against the
property for which the conveyance / declaration / order is granted or the
direction for registration of the society is granted to the applicants or any order /
certificate / judgment is passed against such interested parties and the matter
will be heard and decided ex-parte
By Order, Sd/-
For District Deputy Registrar,
Seal Co-operative Societies, Mumbai City (3),
Competent Authority u/s 5A of the MOFA 1963
6 RUPEE @ 80
>
MUMBAI | WEDNESDAY, 20 JULY 2022

ILLUSTRATION: AJAY MOHANTY

Little relief on
the cards from
high trade deficit
SHREYA NANDI & ASIT RANJAN MISHRA
New Delhi, 19 July WIDENING GAP
Trade balance ($ billion)
A depreciating rupee, which briefly hit 80
to the dollar on Tuesday, may boost India’s
exports but price-inelastic imports of crude
oil and gold would mean limited relief on
the trade deficit, which clocked a record
$26.2 billion in June.
Due to global risk aversion on the back
of geo-political tensions and aggressive

~ fall may hit govt finances

policy tightening by the Fed, the dollar has
appreciated against most currencies,
including the rupee.
And, with other currencies depreciat-
ing, India’s comparative advantage in this
respect may be limited.

with ballooning subsidy bill

“The weakening of the rupee is good
from a trade balance perspective because
it promotes exports and discourages
imports. But that impact is likely to be very
mild because exports depend on global
demand, which is slowing, and imports are Source: Department of Commerce
ASIT RANJAN MISHRA tolerance band of the central bank of 6 rigid. The trade imbalance correction
New Delhi, 19 July
SUBSIDY BURDEN OF THE per cent for the sixth straight month. impact is very limited unless the currency the impact of currency depreciation, but
GOVERNMENT WILL INCREASE WITH The impact of excise duty cuts on depreciates very sharply,” CRISIL Chief only to a certain extent,” he added.

A A DEPRECIATING RUPEE BECAUSE A

depreciating rupee — that
touched ~80 per dollar in intra-
day trade on Tuesday — may
adversely impact central government
finances through a higher subsidy
bill, even as higher inflation possibly
increases government revenue.
With already elevated crude and fer-
tiliser prices due to the ongoing Russia-
Ukraine stand-off, an eroding rupee will
add to the import bill and subsequently
the subsidy burden on the government.
The government sells fertilisers at
subsidised rates to farmers and provides
cooking gas subsidies through Pradhan
Mantri Ujjwala Yojana (PMUY).
“Subsidy burden of the government
will increase with a depreciating rupee
because a very high proportion of
our subsidies is on fertilisers and petro-
leum products. Global shortage of fertil-
isers has already kept prices at raised
levels,” says former chief statistician
Pronab Sen.
The finance ministry has hinted that
India’s fertiliser subsidy bill for 2022-23
(FY23) could rise to around ~2.5 trillion
against Budget Estimates (BE) of ~1.05
petrol and diesel in May is expected to Economist D K Joshi said. Sabnavis said as far as gold imports
be around ~85,000 crore for the year, The Monthly Economic Report, which were concerned, imports might continue
VERY HIGH PROPORTION OF OUR while import duty cuts on other items is the finance ministry brings out and was to rise irrespective of a hike in import duty
SUBSIDIES IS ON FERTILISERS AND likely to lead to a revenue loss of ~10,000- released earlier this month, said the depre- imposed by the government, considering
PETROLEUM PRODUCTS 15,000 crore. ciation, in addition to elevated global com- the consumer sentiment associated with
Since most taxes of the central gov- modity prices, had made price-inelastic the purchase of the commodity.
Pronab Sen, ernment are ad valorem, including imports costlier, making it further difficult India raised its basic import duty on
Former chief statistician Customs duty and the goods and serv- to reduce the current account deficit. gold to 15 per cent from 10.75 per cent ear-
ices tax, higher imported inflation due “The deterioration of CAD could, lier this month, seeking to reduce demand.
THE GOVERNMENT MAY HAVE TO FURTHER REDUCE DUTIES IF to rupee depreciation should ideally however, be moderate with an increase in The country is the world’s second-biggest
boost tax revenue. service exports in which India is more consumer of the precious metal. A down-
GLOBAL CRUDE OIL PRICES DON’T DESCEND. THAT WILL ALSO HAVE A higher nominal gross domestic globally competitive as compared to mer- ward trend in the equity market owing to
REVENUE IMPLICATIONS D K Joshi, chief economist, CRISIL product due to inflation may also chandise exports,” it added. recessionary fears and the outflow of port-
cushion fiscal slippage. Since elevated Pronab Sen, former chief statistician of folio investment have dampened investor
inflation could burden the economy, India, said normally a depreciating rupee sentiment, raising demand for gold, which
trillion because of a global supply short- the exchequer ~6,100 crore per year. the upside to revenue collection may would improve “our trade deficit”, because is considered a safe investment option.
age amid the war in Ukraine. CRISIL’s Chief Economist D K Joshi be limited. imports would come down. “But now “We are seeing a large trade deficit at
Apart from the already announced says if crude oil prices rise further, they “When government revenue goes up, imports are not coming down because of this point of time because Indian industry
~1.1-trillion increase in fertiliser subsidy, may put pressure on the government to it is, in fact, equivalent to an increase in internal income distribution problems, is witnessing challenges in inventory man-
the Narendra Modi government’s deci- further cut excise duty on fuel items to tax rates. Any increase in tax rate is a and exports are going to be adversely agement due to the global supply
sion to extend the PM Garib Kalyan Anna give consumers relief from inflation. contractionary policy. This can lead to a impacted, because the rupee has appreci- chain disruption. This has pushed up
Yojana until September will increase the “The government may have to slowdown in the economy,” says Sen. ated against most other currencies such as imports in the last few months. However,
food subsidy outlay for FY23 to ~2.87 tril- further reduce duties if global crude Joshi says a higher inflation rate the euro, pound and yen,” he said. the trend is unlikely to continue. Once
lion, from BE of ~2.07 trillion. prices don’t descend. That will also have will injure purchasing power, especially Madan Sabnavis, chief economist at inventories are managed well, the demand
Additionally, the government’s deci- revenue implications,” he added. the poor’s. Bank of Baroda, said a continued fall in the for imported products will go down,” said
sion to provide a subsidy of ~200 per gas Retail inflation has remained above “On a net basis, the weakening of the rupee would put pressure on imports, Ajai Sahai, director-general and chief
cylinder (up to 12 cylinders) to over 90 the 7 per cent mark for three consecutive currency will have a more adverse resulting in the trade deficit widening. executive officer, Federation of Indian
million beneficiaries of PMUY will cost months till June and above the upper impact on the economy,” he adds. “A fall in commodity prices may offset Export Organisations.

Defence firms Signs of lower FY23 GDP, corporate growth

seek shield vs WEAK ~, WEAKER GDP GROWTH KRISHNA KANT
DEPRECIATION HITS INDIA INC GROWTH
Mumbai, 19 July
Historical trend in India’s GDP growth and rupee/dollar Historical trend in growth in corporate revenues and
nomic growth. Depreciation also
pushes up the prices of energy, food,

rate variation
AJAI SHUKLA
New Delhi, 19 July
The 6.96 per cent fall in the rupee against the dollar in
just one year is making private Indian defence firms
consider petitioning the Ministry of Defence (MoD) for
protection against exchange rate variation (ERV).
The non-manpower allocations to the three services
in 2022-23 adds up to ~2.22 trillion, 50 per cent of which,
or ~1.11 trillion, can be conservatively assumed to be
going to foreign original equipment manufacturers
(OEMs). ERV accounts for another 6.96 per cent of that,
or ~7,743 crore. If the rupee falls further, that figure will
increase. It is mainly the dollar that has appreciated
against the rupee, while the euro and the United
Kingdom pound have remained largely flat vis-à-vis the
rupee in recent years.
India’s private defence firms had last campaigned
for ERV protection after being bruised by the rupee’s
fall from ~44 a dollar in October 2010 to below ~56 just
a few months later. Even “indigenous” defence systems
contain many imported components and sub-systems,
so any depreciation in the rupee’s value raises India’s
production costs and hits profitability.
Foreign OEMs bid for MoD contracts in foreign cur-
rency. If they emerge as
If history is any gauge, the recent
depreciation in the value of the rupee
against the US dollar signals a slow-
down in India’s growth cycle. This will
translate into lower-than-expected
growth in gross domestic product
(GDP) and corporate sector growth in
2022-23 (FY23). Historically, there is a
negative correlation between the
rupee exchange rate, economic
growth, and corporate sector growth
in the country.
The correlation coefficient between
the year-on-year (YoY) change in cor-
porate sector revenue and the rupee
exchange rate is minus 0.63 since
2003-04 (FY04). The correlation is
higher at minus 0.74 for the period
prior to the Covid-19 pandemic.
Similarly, the correlation coefficient
between the exchange rate and India’s
GDP growth is minus 0.55 since FY04
and the correlation is higher at minus
0.61 for the pre-pandemic period.
Analysts say that growth is the
prime driver of this relationship.
“A decline in economic growth
exchange rate
Note: The growth in gross domestic product is at contant prices, excluding
indirect taxes
results in a decline in foreign capital
inflows, leading to currency deprecia-
tion. Conversely, faster growth attracts
capital inflows, resulting in currency
appreciation,” says Dhananjay Sinha,
managing director and chief strategist,
JM Financial Institutional Securities.
For example, there was sharp
depreciation in the rupee immediately
Source: Reserve Bank of India
after the 2008 global financial crisis as
economic and corporate sector growth
declined sharply in 2008-09.
Similarly, the rupee shed nearly 10
per cent of its value against the green-
back between 2017-18 and 2019-20
(FY20) as GDP growth declined to a 15-
year low of 3.73 per cent in FY20.
In contrast, the rupee gained nearly
rupee/dollar exchange rate
Note: Based on a sample of 977 companies across all sectors that are part of BSE500,
BSE MidCap and BSE SmallCap Index Source: Capitaline
15 per cent between FY04 and 2007-
08 as record high growth attracted for-
eign capital during the period.
Analysts also say a sharp deprecia-
tion can affect growth.
“A decline in capital inflow during
a currency depreciation hits capital
formation and corporate capital
expenditure, resulting in lower eco-
and key industrial raw material, trans-
lating into higher inflation and lower
consumer demand,” adds Sinha.
Last week, Nomura cut India’s
expected GDP growth for FY23 to 4.7
per cent, from its earlier projection of
5.4 per cent. By comparison, India’s
GDP (excluding indirect taxes and sub-
sidies) had grown 8.1 per cent in 2021-
22 (FY22). The slowdown in growth was
also evident in FY22, with GDP grow-
ing only 4.1 per cent YoY in the fourth
quarter of FY22 — the lowest in four
quarters.
Others, however, see only a mar-
ginal impact from depreciation.
“There will be a downward bias in
India’s growth forecast for FY23, but
we will wait a little longer to reach a
final conclusion before giving our final
verdict. As of now, we see only a mar-
ginal impact on GDP or corporate sec-
tor growth in FY23, given the likely
gains from recent decline in commod-
ity prices that could offset the pain
from a depreciating rupee,” says
Madan Sabnavis, chief economist,
Bank of Baroda.

Foreign vacations and education just got dearer

the lowest bidder (L1), the
India’s private
MoD pays them in foreign
defence firms had
currency. Indian OEMs
last campaigned
say the concept of “equal
for ERV protection treatment” and a anxiety is palpable.
after being “level playing field” Experts advise parents to prepare for 5-7% annual increase in costs for children going abroad Students and parents are devising
bruised by the demands that the same workarounds. Avantika Singh, a
rupee’s fall from payment methodology ANEESH PHADNIS, BINDISHA SARANG Patna-based student who will go
~44 a dollar in should be extended to & SANJAY KUMAR SINGH PAYING A PREMIUM Price of leisure tour package in ~ abroad soon, plans a few cost-cutting
October 2010 to Indian firms who emerge Mumbai/New Delhi, 19 July measures. “I plan to live in a shared
below ~56 just a US* nJune-July 2019 nJune-July 2022
as L1 in a tender. accommodation that is off campus,
few months later Indian companies With the rupee depreciating 7 per cent which is usually cheaper, and cook
169,000
160,900

165,000

140,000

144,940
130,000

compete in international against the dollar year-to-date, those myself,” she said.
90,000

contracts under signifi- planning to travel abroad, or send Amit Yadav, chief strategy officer
75,000

cant disadvantages. They must look for risk cover at their children to study in foreign and chief business officer-digital
244,900

354,000
254,000

significant cost, especially for projects that run over
three-to-five year periods or longer. This whittles away
the principles of level playing field and promoting
indigenous defence capability.
In MoD tenders, private Indian companies are
expected to compete against foreign vendors, which
are not affected by ERV; and against DPSUs, which
already enjoy MoD protection. In 2013, industry body
Ficci had sent a detailed paper to the MoD, seeking a
level playing field for the private sector against foreign
OEMs and defence public sector undertakings (DPSUs).
Ficci had suggested that all bidders, including
DPSUs, submit their commercial bids on a multi-cur-
rency format, with imported components quoted in
foreign exchange (forex), and components sourced in
India quoted in rupees. Since 2006, foreign vendors
and private Indian companies have been submitting
multi-currency bids. But DPSUs bid entirely in rupees,
while separately indicating the forex component of the
bid. The winner of a contract, i.e. the L-1 vendor, is
selected by reducing all quotes to their rupee value on
the day of opening of the bids. For this, the forex com-
ponent in the bids of foreign vendors and private Indian
companies are converted to Indian rupees at the selling
rate of State Bank of India, Parliament Street, New Delhi.
colleges, will have to shell out more.
Costs are up
International tour costs are up by as
much as 50 per cent compared to 2019
or pre-pandemic levels on the back of
pent-up demand, increase in airfares
and on-ground charges.
Compared to prices six months
ago, too, tour costs and air fares have
become dearer due to a strong
demand and a sharp surge in the price
of crude oil, which in turn has pushed
up the price of air turbine fuel (ATF).
ATF prices in Mumbai, for example,
are up at ~140 per litre in July from
around ~75 at the start of 2022 and
from ~56 last April.
The international tour package
price has components such as airfare,
hotel, ground transport, sightseeing,
meals, visa and insurance.
Airfare and insurance premiums
are denominated in rupees. Visa
charges are collected in rupees but
218,500
Europe
52
% chg 51
Note: *Without airfare; rate per person on a twin-sharing basis; data for different durations in
different countries
priced in a foreign currency.
Fluctuations in visa fees depend on
the rate of exchange. Typically, airfare
accounts for 30-50 per cent of tour
costs depending on the length of stay.
“With strong pent-up demand,
the supply side constraints, coupled
with the increase in cost of ATF,
we have seen an uptick in air
fares,” said Daniel D’souza, president
and country head (holidays),
SOTC Travel.
An EaseMyTrip spokesperson
said airfares have jumped nearly 50
per cent since 2019 due to increased
Australia Turkey Egypt
39 27 21
% change
Source: Thomas Cook India
fuel prices and demand. Hotel rates
too are up 10-15 per cent.
Rajeev Kale, president and
country head (holidays), Thomas
Cook India, said prices were unlikely
to affect people’s travel.
Cause of anxiety
Owing to rupee depreciation, the cost
of studying abroad will also rise, even
in cases where colleges have not
hiked their fees. This is especially
true for colleges in the US, as well as a
few other countries whose currencies
have appreciated against the rupee.
Singapore
20
Education consultants say that
earlier they used to advise parents to
be prepared for a 2-3 per cent annual
increase in costs, but are now
advising them to be prepared for a
5-7 per cent annual increase.
“Of the families we work with,
about 5 per cent have decided to send
their child to a college in India,” said
Neeraj Khanna, co-founder and
director of Bengaluru-based Spark
Career Mentors.
Of the balance 95 per cent, he said,
some that are financially strong are
not worried. But among the rest, the
business, Avanse Financial Services,
said, “The rupee depreciation will
work in favour of students who are
currently studying in the US and plan
to secure a job that pays in dollars.
They will have an easier time
repaying their education loan.”
If your child is already abroad,
then remit money in advance. Waiting
may raise the cost if the rupee
depreciates further versus the US
dollar. Similarly, if you plan to travel
soon, pre-booking tickets, hotels and
other services may prove helpful.
If your goals are long-term, then
invest in assets that can provide a
hedge against depreciation.
“Have 15-20 per cent of your equity
portfolio in international mutual
funds. Also have 5-10 per cent of total
portfolio in gold,” said Vishal
Dhawan, chief financial planner, Plan
Ahead Wealth Advisers. These assets
can provide a hedge against the
rupee’s depreciation.
.
MUMBAI | WEDNESDAY, 20 JULY 2022 RUPEE @ 80 7 <

Top Indian firms have natural Forex deficit to hurt

India Inc’s margins
hedge against eroding rupee Currency depreciation may
largely hit cyclical sectors
CORPORATE INDIA
SEES PAIN AHEAD
RIL, Tata group, Bharti Airtel, Aditya Birla among conglomerates that took forward positions such as metals and mining,
capital goods and infra India Inc imports more
DEV CHATTERJEE Steel's consolidated revenue. The com- than it exports
pany has $2.3 billion of US dollar debt
Mumbai, 19 July
SAFETY SHIELD and $300 million of debt serviced by its
KRISHNA KANT
Mumbai, 19 July
Historical trend in forex revenue and expenses of
BSE500 firms, ex-banks, finance & Insurance

R
eliance Industries, the Tata % of debt in dollar Indian entity's cash flows. Steel prices
Revenue earnings in forex (~ trn)
group, Bharti Airtel, and Aditya in India are determined based on The steady depreciation in the value of the Revenue expenses in forex
Birla are among Indian con- import parity and are linked to interna- rupee against the US dollar is likely to prove 16
12.3 14

80-85
glomerates that have hedged their reve- tional prices, providing a natural hedge, expensive for corporate India. The listed com-
12

60
nue and costs linked to the US dollar, according to rating firm Moody’s. panies’ revenue expenses in foreign currency
10

40-45
giving them financial cover as the rupee Almost 44 per cent of India’s foreign or imports exceed their export revenues or reve- 8.7 8

30-35
fell past 80 against the greenback on exchange debt taken by companies is nue earnings in forex. 10.0 6

Tuesday. Most top companies have
taken forward cover considering the
seven per cent fall in the rupee’s value
against the dollar since January. “All
prudent companies have taken forward
cover for the weakening of rupee versus
the dollar,” said Prabal Banerjee, former
finance director of Bajaj group.
The Aditya Birla group earns half of
its $60 billion annual revenues from
overseas. Of the group companies,
cement-maker UltraTech has a quarter
of its total debt in the US dollar and it
has taken forward cover on the entire
amount. Reliance Industries, for the
financial year ending March this year,
earned $33.6 billion (~2.54 trillion) via
exports as it reported total revenue of
~4.66 trillion ($61.5 bn). Most of
Reliance’s foreign currency borrowings
(40-45 per cent of total debt) is in the
oil-to-chemicals business, which has a
high degree of natural hedge as both
revenue and costs are denominated in
US dollar.
Tata group companies, in the finan-
cial year 2022, earned revenues of $128
billion (Rs 9.6 trillion). Half of the reve-
nues came from overseas as software
exports or sales by carmaker Jaguar
Land Rover (JLR) and Tata Steel
Europe. Most foreign currency debt of
Tata Motors is held at wholly-owned
British subsidiary JLR that generates
revenue in US dollar, British Pound and
20-30
25-30
Tata Vedanta RIL Tata Ultra- Bharti
Motors Steel Tech Airtel
Source: Moody’s
Euro. Some foreign currency debt at
Tata Motors and intermediate holding
company TML Holdings is fully hedged.
Of its total debt, almost 80-85 per cent
of its debt is in the US currency.
Tata Steel hedges its foreign cur-
rency exposure as almost 35 per cent to
40 per cent of its debt is in US currency.
Part of Tata Steel’s foreign currency debt
is in Euro and it is held by its subsidiary,
Tata Steel Europe. The continent
accounts for around 40 per cent of Tata
unhedged, as per the Reserve Bank of
India’s data till March this year. The
rupee's depreciation will impact neg-
atively to companies that generate reve-
nue in rupees but rely heavily on US
dollar debt to fund operations, as well
as for those with significant dollar-
based costs, such as raw materials and
capital spending.
Moody’s has said exporters would
benefit from a strong dollar as their serv-
ices or products become cheaper and
therefore more competitive in the global
market. However, in the current mac-
roeconomic environment, the benefit
will be likely limited amid weak global
demand and rising prices.
Vedanta’s natural hedge as revenue
is in the Indian currency but it is
also pegged to the US dollar with
import parity pricing for domestic sales
and with export revenue at the bench-
mark prices.
In their latest financial year, BSE500 com- 4.9 4
panies, excluding banks and non-banking FY12 FY22
finance companies and insurance (BFSI),
reported combined forex expenses of ~12.31 Forex gap bigger for firms,
trillion against forex earnings of around ~10
trillion. Given this, rupee depreciation will
excluding IT & pharma
result in a faster rise in expenses hurting cor- Historical trend in forex revenue and expenses of
porate margins and profitability in the forth- BSE500 firms, excluding BFSI, IT services & pharma
coming quarters. Revenue earnings in forex (~ trn)
Forex revenues or exports accounted for 21.6 Revenue expenses in forex 14
per cent of the companies’ combined net 10.1 12
sales. In comparison, imports or forex expenses 10
accounted for 31.8 per cent of their total 8
operating expenses, including raw materials 8.1 6
and energy. 4
The Indian currency has depreciated by 3.4 5.0 2
nearly 7 per cent against the dollar year to date FY12 FY22
and is currently trading at around ~80/dollar. Note: Based on standalone results for 407 BSE 500 firms, ex-
banks, NBFCs and insurance companies
The forex revenue gap is much bigger for Compiled by BS Research Bureau Source: Capitaline
companies, excluding IT services and pharma-
ceuticals. Excluding these two export-oriented of companies such as Tata Steel, Tata Motors,
sectors, the forex revenues for the rest of India Bharti Airtel, Hindalco, and Motherson Sumi,
Inc. were around ~5 trillion in FY22/FY21 against among others.
forex expenses of around ~10 trillion. The big- “A currency depreciation means that com-
gest importers are oil and gas companies, fol- panies will have spent more on their imported

IT services, tech industry to get a leg-up
SHIVANI SHINDE
Mumbai, 19 July
The Indian IT services and
technology industry has been
the biggest gainer of a depreci-
ating rupee as it earns in US
dollars and other foreign cur-
rencies. Since the US contrib-
utes more than 50 per cent of
the revenue, any fall in the
rupee increases their earnings.
This also aids their margin
performance. A 100-basis point
(bp) fall in rupee against the US
dollar means a 30 bp operating
margins benefit.
However, the US dollar
strengthening versus other cur-
rencies like GBP, Euro, Yen, and
Australian dollar negatively
impacts the Indian informa-
tion technology (IT) services
industry. After the US, UK and
Europe are the largest markets
for the sector. This impact was
evident on the margins of sev-
eral IT firms which recently
announced their Q1 numbers.
For instance, India’s largest IT
services player TCS has a 30-bp
impact of the US dollar
strengthening versus the
Indian rupee. But it could not
see a big positive impact on
margins as the dollar strength-
ened against other currencies
and the supply side pressure
eroded the profitability gains.
Samir Seksaria, chief finan-
cial officer (CFO) at TCS, after
the results, said that the cross-
currency movement and the
US dollar strengthening against
other currencies did not allow
much gains, but the overall
impact was a positive 30 bp.
Vinit Teredesai, CFO,
Mindtree, agreed that while the
dollar strengthening against
the GBP and Euro had a neg-
ative impact on revenue, the
dollar strengthening against
the rupee benefited the com-
pany’s EBITDA. “INR hitting
80 versus the USD may sound
margin-positive in the short
run, but it must be understood
that it will come with inflation,
which is not good in the
A LOOK AT REVENUE
$178 bn is 51% share of services exports,
9% relative share to India's GDP
n FY21 n FY22 ($ billion)
196 227
178
151
Revenue Exports
Source: Nasscom
medium to long run. It is Hemal Shah, partner & leader,
thought to predict where INR Corporate Treasury, EY.
will settle, but volatility is “IT companies have set real-
expected to reduce in the com- isation targets for all these cur-
ing months unless a major geo- rency pairs and would accord-
political or macroeconomic ingly stack up their hedge
event happens,” he said. ratios given the volatility in
While IT firms have expo- these pairs. They also keep a
sures in all major G5 currencies, threshold of their exposures
the majority of their exposures unhedged in extreme volatile
are denominated in USD/INR. times to benefit from higher
IT firms have a systematic spot movements. In case of
hedging programme to hedge INR, though the forward pre-
their exposures, explains mium has fallen, spot volatility
has given another set of oppor-
tunity for companies to capture
higher spot rates and in the cur-
rent scenario, psychological
level of 80 is being targeted to
stack up hedges,” said Shah.
However, the falling rupee
is not good news if companies
have a substantial part of their
business from India or reve-
49 nues in other currencies. Take
45
the Larsen & Toubro Infotech
case, which said that its con-
Domestic stant currency revenue was
impacted as the US dollar
strengthened against Euro.
“On a constant currency
basis, our revenue would have
been $586.6 million. The over-
all currency impact was $6.4
million. The US dollar strength-
ened against the GBP, mostly
the European currencies. We
have about 25 per cent of our
revenue in non-dollar denom-
inations. We have had a neg-
ative impact; we also have India
business,” said Sudhir Chatu-
rvedi, president, sales and
executive board member, LTI.
lowed by metals and mining companies.
On the other hand, the IT services and phar-
maceutical companies account for nearly half
of corporate India’s total forex revenues in the
inputs and raw materials. The
recent fall in the rupee will neg-
atively impact corporate margin
and earnings in FY23," says
latest financial but only 18.3 per cent of the over- Dhananjay Sinha, managing
all forex expenses for our sample. In all, the director and chief strategist of
companies in these sectors earned ~4.98 trillion JM Institutional Equity.
through exports but spent only ~2.25 trillion He says the company’s
on imports in their latest fiscal year. In all, specific impact will also
exports accounted for nearly 80 per cent of depend on the relative
the companies' combined net sales in these change in the prices of their
two sectors. final product and their raw
The Business Standard analysis is based materials.
on standalone annual finances of a sample of Others, however, say
407 BSE500 companies’ ex-banks, NBFCs and that the net impact of the
Insurance companies (BFSI). Of these 186 rupee depreciation will be
companies, the latest marginally positive for the
numbers are for the overall corporate earnings,
financial year 2021-22, given the bigger share of
while the rest of the export-oriented sectors
company’s latest such as IT and pharma.
number is for FY21. “Currency depreciation
Given this, the will largely hit cyclical sec-
forex revenues and tors such as metals and
expense numbers will mining, capital goods and
likely change once all infra while it is positive for
companies publish IT and pharma. But given
their annual report for the higher weightage of IT
FY22 that contains the and pharma in the overall
data on forex transac- sample, depreciation will be
tions. The data doesn’t positive for overall earn-
include the finances ings in FY23,” says
of overseas Shailendra Kumar, CIO of
subsidiaries Narnolia Securities.

> FROM PAGE 1

Neutral impact for pharma sector: Experts
Rupee breaches SOHINI DAS
Mumbai, 19 July
impact due to dollar rising,” said one
Gujarat based formulation maker.
On the whole, the pharma industry

80/$ for first time The impact of the rupee depreciation is

likely to be largely neutral for the Indian
pharmaceutical sector, say industry
feels that the impact will be neutral. A
senior executive of a pharma lobby group
said, “Dollar gains will be neutralised by
These included the RBI’s intervention The strong defence provided by the insiders, as the benefits may be offset by price erosion, and rise in input costs.
at the 80 level, a weaker dollar RBI’s formidable foreign exchange rising input costs. Therefore, the gains will be offset.”
index, strength in domestic equities, reserves was also cited as a factor that India’s pharmaceutical sector exported Rating agency CareEdge said that the
and firm dollar sales by banks on would rein in volatility for the rupee, drugs worth ~1.8 trillion ($22.5 billion at US generic market saw a steep rise in
behalf of exporters. even in the face of a widening current INR-USD rate of 80) in 2021-22, according competition and consequent price
The US dollar index, which earlier account deficit, experts said. to the Ministry of Commerce. This was flat erosion, which also impacted the
this month had ascended to 20-year “Emerging market currencies are over the previous year. In 2020-21, profitability of the Indian pharma industry
highs, has seen a significant better placed than earlier because of however, the exports had clocked an 18 per during 2021-22. However, the negative
retracement over the last couple of forex reserves and because of the way cent year-on-year (YoY) growth. On the impact of price erosion on profitability was
trading sessions as comments by their central banks have been proac- other hand, India also imports active partly offset by the depreciation of INR
Federal Reserve officials hinted at the tive. From that perspective, we are not pharmaceutical ingredients (APIs) and against USD.
central bank raising rates by 75 basis too worried about INR,” Jayesh Mehta, other raw materials needed to CareEdge expects the profit before
points (bps) at its meeting later this India Country Treasurer, Bank of manufacture drugs, and industry points interest, lease rentals, depreciation and
month instead of 100 bps, as feared America, told Business Standard. out that bulk of these imports is from TOP 10 GAINERS IN NIFTY PHARMA taxes (PBILDT) margin of the Indian
by markets. “If dollar strengthening happens China, and in dollar denomination. CMP Change % pharma sector to decline both on YoY basis
The dollar index, a gauge for the to be so much stronger, then of India roughly imports APIs worth and sequential basis to 19-20 per cent
(As on July 18) (~) 1-mth 3-mth YTD
US currency against course, emerging mar- ~30,000 crore, and other chemicals and during the first six months of 2022-23 due
six major currencies, kets are impacted, raw materials to the tune of ~32,000 crore Granules India 308.5 27.3 3.6 -8.2 to an increase in the cost of APIs and key
was at 106.60 at the including the rupee. (total ~62,000 crore; $7.75 billion). On top of Ipca Laboratories 998.1 15.2 -2.4 -7.9 starting materials (KSMs) apart from
3:30 pm IST, much At $580.3 billion, We believe that forex this, there has been a rise in freight, and increase in the cost of packing material,
lower than 108.06 the India’s forex reserves being where power costs in recent months. Prices of key
Sun Pharma 882.8 11.3 -4.8 4.4 freight and compliance cost.
same time on Friday, reserves are they are, even if we APIs have risen in the range of 30-140 per Strides Pharma Science 343.7 11.2 -3.1 -23.1 “It is expected that the PBILDT margin
the Bloomberg data around $51 billion were to have a current cent, varying across products. Abbott India 19,867.4 10.9 14.6 2.0 should rebound in H2FY23. CareEdge
showed. lower than the account deficit, which Kunal Randeria, analyst with expects rupee depreciation to have a
With a large part of levels they were in is around 3-3.5 per Edelweiss Securities said that the rupee Torrent Pharmaceuticals 1,506.1 9.2 6.1 -7.6 positive impact of nearly 100-150 bps on
the rupee’s 7 per cent late February, cent, we will manage depreciation is a slight positive for US- Lupin 645.4 8.0 -16.2 -32.1 the PBILDT margin during FY23. On a full
year-to-date deprecia- when the Ukraine the situation, and the focused companies like Dr Reddy’s Laurus Labs 505.4 7.9 -15.5 -6.2 year basis, CareEdge expects the PBILDT
tion having occurred war started rupee will not go into Laboratories, Aurobindo, Divi’s margin to shrink by 200-250 bps during
over the last month, a free fall,” he said. Laboratories, etc. “However, this will be Dr Reddy's Laboratories 4,466.1 7.7 4.2 -9.0 FY23 over FY22 after considering the
several traders were of At $580.3 billion, blunted by input cost rise impact,” he said. Divi's Laboratories 3,740.0 7.4 -17.3 -20.1 positive impact of rupee depreciation,” it
the view that the currency might not India’s forex reserves are around $51 According to Bloomberg, companies says in a recent note.
NSE Nifty Pharma 12,713.5 7.7 -7.3 -10.6
fall much from current levels. billion lower than the levels they were that draw the highest share of revenues Based on industry aggregates that
CMP: Current market price; YTD: Year-to-date; Source: Bloomberg, exchange Compiled by BS Research Bureau
“A lot of negatives are already in late February, when the Ukraine war from the US are Strides Pharma (78.7 per represent over 85 per cent of the overall
priced in. We feel the rupee is in the started. The headline reserves, cent), Granules India (62.93 per cent), pharma market, the operating profitability
last leg of weakness. With broad com- however, are more than twice the Aurobindo (47.6 per cent), Zydus (46.6 per in the P&L because there’s a natural hedge planned, and at times hedged by the buyer, had remained stable at about 23 per cent
modity prices correcting, supply amount they were during the Global cent), Biocon (36.5 per cent) among others. between having a revenue US dollar- but there are spot costs for the pharma during the last 4 years (except for the
chains improving, and oil prices in Financial Crisis of 2008 and the Taper However, exports are mostly in US dollar dominated and lots of our operating costs companies,” said a senior analyst who did pandemic year of 2020-21), the rating
control, the dollar index is likely to Tantrum of 2013. denominations apart from some countries in the rupee. But in general, I think like not wish to be named. agency said.
make a top soon,” IFA Global’s CEO Analysts also pointed out that like Russia. most industries, everybody’s seeing When foreign buyers see that dollar As for the medical devices sector, most
Abhishek Goenka said. while the rupee had depreciated Managing Director and Chief Executive inflation, it’s something that for many of us value is rising vis-à-vis the rupee, they of India’s imports are from China, and the
Goenka was of the view that over- against the US dollar, it had strength- Officer, Syngene International, Jonathan around the world, we’ve not seen at this usually seek discounts from the Indian industry says there would not be much
seas investment flows would return to ened against certain major currencies Hunt explains: “The vast majority of our level for decades if not longer. And we have companies, said an industry insider. “The benefit by cutting down imports. “The 5-6
India in the second half of 2022, and such as the euro, British pound, and work or rather our revenue is dollar- to learn to cope,” Hunt adds. pharma companies give discounts, but per cent depreciation of rupee vs USD
that the current levels for the dollar- Japanese yen. denominated. We price our contracts in Analysts agree that operating costs and they also encash on the situation by asking should help exports and theoretically
rupee pair should encourage exporters From 84.21 to a euro on December dollars. So when we repatriate that back hedging undertaken by companies may for larger contracts, or longer term discourage imports. But in reality, the
to slowly step up sales of the green- 31, 2021, the rupee was last at 81.87 per into rupees, clearly we’re getting a benefit offset most of the gains arising from a contracts,” the person explained. imports are usually not discouraged in
back, thus protecting the rupee. euro, the Bloomberg data showed. The there and that in some ways helps us offset weaker rupee. Smaller companies, however, are likely most cases as China is the dominant
Foreign portfolio investors have rupee’s appreciation versus the British some of the local natural rupee “Most of the companies have hedged to be negatively impacted as they do not exporter of medical devices to India and
net sold more than $30 billion worth pound has been starker, with the inflationary pressure.” their dollar exposure. Dollar impact comes have long-term import contracts for APIs also lost 6 per cent to USD, so yuan versus
of Indian assets so far in 2022, the domestic currency settling at 96.08 to “Where we are sourcing locally, so we in two forms — one is topline, but also in and intermediates. “These companies do rupee (there is) hardly any change,” said
highest outflow on record, the NSDL a pound on Tuesday, as against 100.44 source in India when we can; plus, the the middle-line (like paying salaries, which not carry a lot of stock, and they have to do Rajiv Nath of the Association of Indian
data showed. on December 31. labour cost. So there’s a little bit of an offset is done on the spot prices). Sales are some spot deals. They may have a negative Medical Devices Industry.
8 ECONOMY & PUBLIC AFFAIRS
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1

Haryana DSP mowed Ex-Mumbai police chief There’s fear of

down by sand mining
Lanka crisis
mafia truck he flagged
A deputy superintendent of
police (DSP) investigating
illegal stone-mining was
arrested in NSE colo case spillover, says
SHRIMI CHOUDHARY of NSE employees by iSec services, a

Jaishankar
killed on Tuesday when a
New Delhi, 19 July company floated by him, the other is for
truck he signalled to stop in
violating the Securities and Exchange
Haryana's Nuh district drove

into him, officials said.
Tauru DSP Surendra Singh
had signalled a dumper-
truck to halt to check documents. But the driver sped
on, running over him. The officer's gunman and his
driver jumped aside to safety, but the DSP was hit. He
was rushed to hospital where doctors declared him
dead, police said. Singh, along with his team, had gone
to conduct raids to stop illegal mining in Aravalli hills
in Pachgaon area near Tauru when he spotted the
truck at 11.50 am. An officer said police teams are
conducting raids to arrest the driver.
IN BRIEF
NTPC set to award 1st coal-fired
plant order in nearly 6 years
National Thermal Power Corporation (NTPC), India’s largest power
producer, is going ahead with construction of its first coal-fired
plant in about six years, as the global energy crunch spurs demand
for the dirtiest fossil fuel. Bharat Heavy Electricals emerged as the
lowest bidder to build the 1,320 megawatt project in Odisha,
according to people familiar with the matter.
T
he Enforcement Directorate (ED)
on Tuesday arrested former
Mumbai Police Commissioner
Sanjay Pandey in a money laundering
case involving illegal snooping of
National Stock Exchange employees dur-
ing 2009-2017.
He was taken into custody following
several hours of questioning by the federal
agency on Monday and Tuesday in the
matter. Pandey is expected to be produced
before a special court under the Prevention
PTI
of Money Laundering Act (PMLA) for
remand, an ED official told
Business Standard.
“We are tracing Pandey’s and related
entities’ assets derived from the ‘proceeds
of crime’ while snooping on NSE employ-
ees,” the official said.
So far, about ~15 crore is under exami-
nation; it is the amount that Pandey
allegedly received from the former NSE
brass for ‘snooping’, he indicated.
The agency, it has been learnt, is exam-
ining transcripts of phone tapping which
BLOOMBERG
ED is tracing Sanjay Pandey’s and related
entities’ assets derived from the
‘proceeds of crime’ while snooping
on NSE employees
reflect price-sensitive information about
companies, margins, trading data, etc, to
ascertain whether they were leaked in col-
lusion with brokers for monetary benefits.
The former Mumbai top cop has been
facing investigations by both ED and
Central Bureau of Investigation. While is
for alleged illegal interception of phones
Board of India (Sebi) framework on sys-
tems audit.
The contract with iSec is learnt to
have terminated in February 2017, within
two months of Chitra Ramkrishna’s exit
as chief executive officer (CEO). The new
management came in July that year.
Ramkrishna and former NSE CEO Ravi
Narain were also booked last week by the
ED in the case under the PMLA following
alleged corruption charges levelled by
the CBI.
On July 8, following the orders of the
Ministry of Home Affairs (MHA), the
Central Bureau of Investigation (CBI) reg-
istered a fresh case in the alleged NSE co-
location scam that involves the phone tap-
ping of NSE employees.
When iSec was set up, Pandey was not
in the Indian Police Service; he quit as
director in 2006. His mother and son are
directors of the company.
iSec was one of the firms that had car-
ried out audits at the NSE when the colo-
cation case happened.
Says comparisons between India
& Sri Lanka inaccurate, misplaced
ADITI PHADNIS The situation there is
New Delhi, 19 July
unprecedented in terms of
what we are seeing and the
India has given $3.8 billion as
financial, social and political
‘humanitarian’ assistance to
Sri Lanka, making it the consequences of that. It’s our
biggest donor, External very close neighbour. So,
Affairs Minister S Jaishankar naturally the level of concern,
said after an all-party meeting
on the island nation
as well as the worry that there
on Tuesday. would be spillover to India, is
India will ‘help and facili- there. If there is instability in
tate’ the island nation in its any neighbouring country or
engagement with other mul-
tilateral funding bodies,
any violence, that is a matter
of deep concern to us
including the International
Monetary Fund (IMF) and S Jaishankar,
other debtors, Jaishankar External Affairs
said. He said the all-party Minister
meeting was held in view of
the fact that there’s a very seri-
ous crisis in Sri Lanka.
“The situation there is

FDI inflow in R&D grew RBI hikes capital adequacy ratio
sixfold to ~344 mn in ’21
India witnessed a sixfold jump in foreign direct investment (FDI)
for urban cooperative banks to 12%
equity inflow of $343.64 million in research and development (R&D)
in the calendar year 2021 as compared to the year-ago period.
Announces four-tiered regulatory framework and other changes for UCBs
According to data released by the industry department, Karnataka ABHIJIT LELE
was the top FDI equity recipient state in R&D during 2021. Karnataka Mumbai, 19 July
was followed by Telangana and Haryana. Flows into Karnataka
were up over 250 per cent in 2021 as compared to 2020. BS REPORTER The Reserve Bank of India
(RBI) has hiked the minimum
capital adequacy ratio (CAR)
ICICI Lombard’s Q1 net up 80% for urban cooperative banks
(UCBs) with deposits above
at ~349 cr on strong premium ~100 crore to 12 per cent from
the earlier floor of 9.0 per cent.
ICICI Lombard's net profit jumped 79.6 per cent year-on-year (YoY) It has provided a glide path
to ~349 crore in Q1 of FY23, on the back of a healthy growth in till March 2026 to meet revised
premium income. In the year-ago period, its net profit was to the CAR norm in phases for UCBs
tune of ~194 crore. The gross direct premium income by the insurer that don’t meet currently. It has
during the period was ~5,370 crore, up 28.2 per cent from the retained the norm of a mini-
year-ago period. BS REPORTER mum CAR of 9 per cent for tier-
1 banks (those with deposits up
to ~100 crore).
The RBI in a statement said
Canara Bank raises ~2,000 cr by it decided to adopt a simple
four-tiered regulatory frame-
issuing Basel III-compliant bonds work with differentiated regu-
latory prescriptions to
Canara Bank on Tuesday said it has raised ~2,000 crore by issuing strengthen the financial
Basel III-compliant additional tier I bonds this month. The bank soundness of the existing
came out with the issuance of ~2,000 crore of additional tier-I
bonds on July 15, 2022. “The bank received total bid amount of
~5,719 crore, out of which full issuance of ~2,000 crore was
accepted at 8.24 per cent,” the bank said in a regulatory filing. PTI
UCBs. This is based on recom-
mendations of a panel headed
by N S Vishwanathan, former
Deputy Governor set up in
February 2021.
According to the data
reported by the banks as on
March 31, 2021, most UCBs
have a CRAR of more than 12
per cent (1,274 lenders out of
1,534). The tier-2 banks are
UCBs with deposits of more
than ~100 crore and up to
~1,000 crore; Tier-3 are UCBs
with deposits of more than
~1,000 crore and up to ~10,000
crore. The final layer, Tier-4.
consists of banks with deposits
exceeding ~10,000 crore.
RBI will adopt a liberal
approach to branch expansion
by Urban banks, and will intro-
duce an automatic route for
UCBs that meet the revised
Financially Sound and Well
Managed (FSWM) norms. Such
banks will be allowed to
expand their branch network
by up to 10 per cent over the
number of branches at the end
of the previous financial year.
While the branch expansion
proposals under the prior-
approval route will also contin-
ue, the process will be simpli-
fied in order to reduce the time
taken for granting approvals for
new branches.
RBI said in order to boost
business opportunities for
housing loans, risk weights will
now be assigned on the basis
of loan-to-value (LTV) ratio
alone. This is expected to bring
capital savings, and will apply
to all UCB tiers. RBI added that
revaluation reserves will be
considered for inclusion in
Tier-I capital subject to appli-
cable discounts on the lines of
scheduled commercial banks.
unprecedented in terms of
what we are seeing and the
financial, social and political
consequences of that. It’s our
very close neighbour. So, nat-
urally the level of concern, as
well as the worry that there
would be spillover to India, is
there. If there is instability in
any neighbouring country or
any violence, that is a matter
of deep concern to us,” other
debtors, Jaishankar said.
At the all-party meeting,
two issues were flagged: that
of Indian fishermen and all
aspects of the problem that
keeps spilling over in Tamil
Nadu, separated by a 12-km
belt of water from Sri Lanka.
Jaishankar conceded that
India and Sri Lanka have
long-standing issues on this.
But, he said the economic cri-
sis and the money Sri Lanka
owes to other countries is an
immediate crisis.
He said comparisons
between India and Sri Lanka
were inaccurate and mis-
placed on all counts, includ-
ing political and economic
instability. Rahul Gandhi had
in tweets over two days, com-
pared India with Sri Lanka
and the people’s uprising
there.
Political parties from
Tamil Nadu such as the
Dravida Munnetra Kazhagam
and All India Anna Dravida
Munnetra Kazhagam had
demanded at an all-party
meet before monsoon session
began that India should inter-
vene in the crisis in the neigh-
bouring country. Jaishankar
did not mention any kind of
active intervention.
The Indian Embassy in
Colombo has denied specula-
tion that India would inter-
vene militarily, or act in any
way to shield the discredited
Rajapaksa regime.
The meeting saw the pres-
ence of many officials includ-
ing Indian High Comm-
issioner in Colombo, Gopal
Baglay, and officials from the
Ministry of Finance
who made detailed presenta-
tions to contest the proposi-
tion that India could go the
Sri Lanka way.

Supreme Court protects Nupur

India vulnerable to price volatility: Moody’s Goyal calls for
deepening
CAUTIONARY ALERT
Sharma from coercive action
INDIVJAL DHASMANA
New Delhi, 19 July
nFood nFuel and light n Overall
CPI inflation in % YoY apart from the impact of the other countries is that they
Russia-Ukraine war, such as have less fiscal space than trade ties
heat waves in India. before the pandemic’s out-
The Supreme Court Tuesday granted interim protection from
coercive action to suspended Bharatiya Janata Party (BJP)
Moody’s Investors Service has
warned that India, along with
Heat waves particularly
damaged the wheat crop in
break.
The Centre’s fiscal deficit
with Africa
spokesperson Nupur Sharma in connection with the FIRs filed the Philippines, Thailand, India, leading to a surge in is projected to reduce from 6.7
against her in several states over her remarks on the Prophet and Vietnam are highly vul- inflation in this item. It also per cent in financial year 2021-
10.67

10.39
6.95

9.54
6.07

7.04
9.32

8.73
5.58
6.01

7.79
7.52
5.43

7.68

7.01
8.31

7.97

7.75

made during a TV debate show. A bench of Justices Surya Kant and nerable to volatile food and
J B Pardiwala protected her from coercive action in the FIRs which energy prices in the Asia-
may be registered or entertained in the future about the May 26 Pacific region as the Russia-
telecast. PTI Ukraine conflict continues to
disrupt supplies and raise the
cost of agricultural products,
Oppn V-P candidate Margaret especially cereals and veg-
etable oils, as well as fertilizers
Alva files nomination papers and other agricultural inputs.
This is so because these
Joint opposition candidate for the vice presidential election countries have a higher
Margaret Alva on Tuesday filed her nomination papers for the post weighting of energy and food
and was accompanied by a host of leaders from various parties. prices in their consumer price
The vice presidential poll will be held on August 6. Alva, 80, is index (CPI) baskets, Moody’s
pitted against NDA’s Jagdeep Dhankhar, who resigned as West said in its report released on
Bengal governor after being nominated on Saturday. PTI Tuesday.
> BS SUDOKU # 3719 > FROM PAGE 1
HUL...
The company’s volume growth
stood at 6 per cent in the April-
June quarter (on a high base of
last year) as against a contrac-
tion of 5 per cent for the indus-
try. In the June quarter last
year, the company’s volume
growth was 9 per cent.
Analysts at Motilal Oswal
Securities had estimated vol-
ume growth of just 2 per cent
in Q1FY23.
“With the dollar strength-
ening, we are seeing a curren-
cy-led inflation impact,” Ritesh
Tiwari, HUL’s chief financial
officer, said in the company’s
post-results press conference.
He added consequently,
widespread inflation was
SOLUTION TO #3718 impacting consumer demand.
“Even though the correc-
Difficult: tion in some commodities like
«««« palm (oil) happened in the last
Solution tomorrow couple of weeks of June, we will
have higher cost inventories
that were contracted earlier.
HOW TO PLAY The consumption of this inven-
tory in the September quarter
Fill in the grid so that and many of the commodities
every row, every like crude oil, caustic soda and
column and every 3x3 plastics remain elevated year-
box contains on-year. September quarter
the digits 1 to 9 NMI (net material inflation)
Jan Feb Mar
Source: MoSPI
The weighting of energy
and food in overall Indian CPI
stands at over 55 per cent.
Food inflation stood at over
seven per cent for the fourth
month in a row in June,
though it declined to 7.75 per
cent from 7.97 per cent in May.
On the other hand, fuel and
light inflation entered double
digits at 10.39 per cent in June
will be higher than the June
quarter.” The company will
continue to take calibrated
pricing action.
During the quarter, the
company saw its PBIDT (profit
before interest, depreciation
and tax) increase 19 per cent
YoY to ~3,523 crore.
The home care category
increased 30 per cent while
beauty and personal care grew
17 per cent.
“Hair Care grew in high
double-digit led by strong per-
formance in premium portfo-
lio. Soaps delivered price-led
double-digit growth driven by
strong performance in Lux,
Dove and Pears,” the firm said
in its press release.
HUL’s foods and refresh-
ments category grew 9 per cent
in Q1, driven by performance
in ice-cream, coffee and food
solutions.
Against the 10-year median
price, Brent crude, caustic soda
and polyethylene and palm oil
are all inflated more than 50
per cent. And the prices are
hovering at historical highs,
Tiwari said.
Sanjiv Mehta, HUL’s chief
executive officer and managing
director, said the company was
gaining volume and value
share ahead of the market. He
also cited NielsenIQ numbers
Apr May Jun
from 9.54 per cent the previ-
ous month even as the rate of
price rise in petrol and diesel
declined after the Centre and
states announced a cut in
indirect taxes on these prod-
ucts.
The report said harvests
this year in some of the
region’s major producers will
be hit by other developments,
for the quarter, which said val-
ue growth for the industry
stood at 7 per cent while vol-
umes declined by 5 per cent.
On the firm’s outlook,
Tiwari said: “In the near term
growth will be price-led as
inflation continues to impact
consumption.”
Tiwari added prices of most
commodities had further
inflated in the June quarter and
continued to remain at very
high levels.
“This, along with the con-
sumption of higher-cost
pipeline inventories, will result
in September quarter margins
remaining under pressure.”
But he said if the recent soft-
ening in commodity prices
stayed, it would positively
impact the company’s
sequential margins in the
December quarter.
Mehta said: “The markets,
especially from a lens of vol-
ume, still remain soft. Inflation
is still very much a concern; the
markets still remain a concern.
So, those factors haven’t
gone away.”
He further added: “From a
macro perspective, it is very
important that we manage
inflation.”
Ahead of the results, the
HUL stock was 0.5 per cent
higher at ~2,566 on the BSE.
damaged other crops such as
mango, guava, and chilli.
India reported 280 heat
wave days from March 11 to
May 18 — the highest in 12
years, according to a report
titled State of India’s
Environment 2022.
Stating that there is a
growing social risk of
demands on fiscal resources
to limit the impact of price
rise and to ensure the adequa-
cy of basic supplies in the
region, Moody’s said a major
challenge for India and the
FM...
The decision, she said, was tak-
en by the Council, where all
states are represented, through
a consensus.
Explaining the rationale
behind the move, she said that
when the GST regime, which
subsumed 17 central and state
taxes, including central excise
and state value-added tax, was
rolled out in July 2017, a 5 per
cent tax was levied on ‘brand-
ed’ cereals, pulses, and flour.
“Later, this was amended to
tax only such items which were
sold under a registered brand
or brand on which enforceable
right was not foregone by the
supplier,” said Sitharaman.
“However, soon the ram-
pant misuse of this provision
was observed by reputed man-
ufacturers and brand owners
and gradually the GST revenue
from these items fell signifi-
cantly,” she pointed out.
The minister further high-
lighted that such a practice was
resented by suppliers and
industry associations that were
paying taxes on branded goods
and asked the government to
impose GST uniformly on all
packaged commodities to stop
further misuse. “This rampant
evasion in tax was also
observed by states,” she
observed.
22 (FY22) to 6.4 per cent in the
current fiscal. Even this pro-
jection is facing stress due to
the extension of the free food
programme and rising fertil-
izer subsidy.
“Compensating for domes-
tic food price increases will
entail fiscal costs for govern-
ments or state-owned com-
modity companies (in Asia-
Pacific). The pace of fiscal
consolidation in some of
these economies is likely to
slow as spending pressures
persist,” Moody’s said.
“It is in this context that the
GST Council at its 47th meeting
took the decision. With effect
from July 18, only the modali-
ties of imposition of GST on
these goods was changed, with
no change to the coverage of
GST, barring two/three items,”
she clarified. “For example,
items like pulses, cereals like
rice, wheat, and flour, etc, ear-
lier attracted GST at 5 per cent
when branded and packed in
unit containers. From July 18,
these items attract GST when
‘pre-packaged’ and ‘labelled’,”
she cleared up. However, puls-
es, wheat, rye, oats, maize, rice,
flour, sooji, besan, puffed rice,
and curd/lassi, when sold loose
(and not pre-packed or pre-
labelled), will not attract any
GST.
Non-BJP-ruled states of
Punjab, Chhattisgarh, Rajas-
than, Tamil Nadu, West Bengal,
Andhra Pradesh, Telangana,
and Kerala had agreed to
impose the 5 per cent levy, she
said. “Is this the first time such
food articles are being taxed?
No. States were collecting sig-
nificant revenue from food-
grain in the pre-GST regime.
Punjab alone collected more
~2,000 crore on foodgrain by
way of purchase tax. Uttar
Pradesh collected ~700 crore,”
she defended.
Commerce Minister Piyush
Goyal has identified four
major focus areas for the
India-Africa partnership
SHREYA NANDI
New Delhi, 19 July
Commerce and Industry
Minister Piyush Goyal on
Tuesday called for expansion
and diversification of India-
Africa economic relations
and inclusion of emerging
areas, such as solar energy,
start-ups, and digital infra-
structure for partnership.
Goyal identified four
major focus areas for the
India-Africa partnership:
solar power, military
exchanges in the context of
the security of the Indian
Ocean, physical and digital
infrastructure, health care,
pharma and vaccines, and
start-up ecosystem.
The trade has been bal-
anced with exports of trade
and services of about $40 bil-
lion and imports of $49 bil-
lion, Goyal said at the inau-
guration of 17th CII-Exim
Bank conclave here.
“India gives 27 less-devel-
oped countries from Africa
the benefit of duty free tariff
preference… It’s time we also
looked at further deepening
and strengthening the trade
partnership and possibly
looked at giving greater trad-
ing access to both the African
continent and to India so that
we can expand this trade in a
much faster and greater way.”
He said both the countries
were blessed with significant
amounts of sunlight and
solar power could be one area
of engagement between
Africa and India.
>
MUMBAI | WEDNESDAY, 20 JULY 2022 POLITICS & PUBLIC AFFAIRS 9

Labour unions step up

protest over inflation
BMS says price rise tough to tame; CITU, AITUC to agitate on I-Day eve
NITIN KUMAR
New Delhi, 19 July

W
ith the inflation rate hovering
over 7 per cent for a third
month in June, labour unions
are stepping up efforts to take on the
government on this issue.
As part of these protests, the Centre
of Indian Trade Unions (CITU), affiliated
to the Communist Party of India
(Marxist), is set to start a ‘Samuhik
Jagran’ drive, beginning on August 1,
which will conclude with an overnight
dharna (sit in) at all district centres on
the eve of the 75th Independence Day.
Umesh K N, national secretary, CITU,
said: “There will be a national
convention, jointly with All India Kisan
Sabha and other agriculture workers’
unions on September 5 at the Talkatora
Stadium, in New Delhi, where our future
programmes will be finalised.”
Other labour unions, too, are planning
to mobilise workers in the coming months.
The Indian National Trade Union
Congress (INTUC) will consider a
14-point agenda, including inflation,
unemployment, and minimum wages at
its upcoming core committee meeting
scheduled to be held next week.
“Inflation is rising through the roof
and the government is least bothered to
bring it under control. The INTUC will
fight the government on the streets,” said
Ashok Singh, vice-president, INTUC, and
governing body member, International
Labour Organization (ILO).
The All India Trade Union Congress’
(AITUC’s) working committee at its
two-day review meeting, which ended
on Monday, decided to take up workers’
issues by sectors (like banking, steel,
cement, etc.). The AITUC, too, will start
its mass awareness and mobilisation
drive from August 1 and culminate on
Independence Day.
Amarjeet Kaur, general secretary,
AITUC, said: “We have prepared our
resolution and will go to the prime min-
ister as a central trade union to demand
quashing of the labour codes. Now our
battle has to be more volatile and mili-
tant,” she added. “Wage repression and
high inflation have made conditions
worse for 90 per cent of the workforce
engaged in the informal sector.”
BMS unconvinced
Addressing the concern of rising con-
sumer price inflation numbers, Union
Labour unions are looking to mobilise on some specific issues, but there are no
immediate plans to call for a general strike
THE PROGRAMME
> CITU's ‘Samuhik Jagran’ drive will
start from August 1 and culminate
on August 14
> INTUC will take a decision on its
strategy in its upcoming core
committee meeting scheduled to
be held next week
> AITUC’s awareness and
mobilisation drive will start from
August 1 and culminate on
Independence Day
> BMS' ‘Jan Jagran’ mobilisation
drive will start from July-end and
culminate on November 17
Finance Minister Nirmala Sitharaman
recently noted that Centre is watchful of
the price situation and had already taken
necessary steps to bring inflation under
control by reducing excise duty on petrol
and diesel, banning wheat exports, allow-
ing duty free import of certain crude edi-
ble oil and revising duty structure on
steel and steel products. “Will continue
the pointed attack on inflation,” she said.
But the government’s efforts to tackle
rising prices appear not to have con-
vinced the Bharatiya Janata Party’s
(BJP’s) sister organisation, the Bharatiya
Mazdoor Sangh (BMS). The union is set
to discuss a plan of action at its central
TALBROS AUTOMOTIVE COMPONENTS LIMITED
CIN : L29199HR1956PLC033107
Regd. Office: 14/1, Mathura Road, P.O. Amar Nagar, Faridabad, Haryana -121003
Tel No.: 0129-2251482, E-mail: seema_narang@talbros.com Website: www.talbros.com
NOTICE TO SHAREHOLDERS
For transfer of shares to the Investor Education and Protection Fund (IEPF) Account
NOTICE is hereby given to shareholders of the Company pursuant to the provisions of
Section 124 of the Companies Act, 2013 read with Investor Education and Protection Fund
(IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“the Rules”) that
the Company is required to transfer the shares in respect of which dividend remains
unpaid or unclaimed for a period of seven consecutive years, to the IEPF Account
established by the Central Government. The said shares correspond to the shareholders
who have not claimed dividend for F.Y. 2014-15 and following six years thereafter.
FILE PHOTO: REUTERS The Company has already sent individual communication to concerned shareholders at
their registered addresses, inter alia, providing details of their shares liable to be
meeting in Bhubaneswar, scheduled to transferred to IEPF Account. Shareholders are requested to forward requisite documents
as mentioned in said communication to Company or Company’s Registrar & Share
be held in the last week of August.
The BMS recently concluded its
Transfer Agent to claim the unclaimed dividend amount(s). Alist of such shareholders, who
have not encashed their dividends for seven consecutive years is available on the website
district-level deliberations to raise the of the Company www.talbros.com.
issues of inflation, corporatisation of Notice is further hereby given that in the absence of receipt of a valid claim by the
shareholder, the Company would be transferring the said shares to IEPF Account without
public sector undertakings (PSUs), further notice in accordance with the requirement of said Rules. Please note that no claim
wages, and social security. shall lie against the Company in respect of unclaimed dividend amount and shares
Calling the government’s efforts to transferred to IEPF pursuant to the said Rules. Further, upon such transfer, shareholders
curb inflation insincere and dishonest, can claim the transferred shares along with dividends from the IEPF Authority, for which
details are available at www.iepf.gov.in.
BMS general secretary Binay Kumar For any information/clarifications on this matter, concerned shareholders may write to
Singh said: “The economic condition is the Company or send email at seema_narang@talbros.com or contact Registrar and
very bad and the rise in inflation is Share Transfer Agent of the Company- KFIN Technologies Limited, Selenium Tower B,
Plot Number 31 & 32, Financial District Gachibowli, Hyderabad 500032; Phone No.
becoming difficult to tame. The
government has also failed to bring
91 040 67161524; Email id: rajeev.kr@kfintech.com
petrol and diesel under the ambit of
For Talbros Automotive Components Limited
Sd/-
the goods and services tax (GST).” Place: Faridabad Seema Narang
The BMS will start a ‘Jan Jagran’ Date: 19th July, 2022 Company Secretary
mobilisation drive to create awareness on
corporatisation of PSUs, minimum wages,
and social security issues. It will organise
a national level protest in New Delhi on
November 17 to address these issues.
General strike
Though labour unions are looking to
mobilise on some specific issues, there are
no immediate plans to call for a general
strike. However, union leaders say such
nationwide protests could take place if the
government does not act fast. “National-
level general strikes are not a day-to-day
affair. But, more such protests will be wit-
nessed in the coming days,” said Tapan
Kumar Sen, general secretary, CITU.
On the question of trade unions join-
ing hands, AITUC’s Kaur said central
trade union organisations (CTUOs) will
meet over the week to discuss the matter.

Oppn stalls proceedings over

‘unparliamentary’ GST hike
ADITI PHADNIS
New Delhi, 19 July
The entire Opposition united
on Tuesday to force both the
Lok Sabha (LS) and the Rajya
Sabha (RS) to adjourn on the
issue of price rise and the impo-
sition of the goods and services
tax (GST) on packaged food like
milk and yoghurt.
The issue of the new mili-
tary recruitment scheme
Agnipath was also flagged,
even as Opposition candidate
for Vice-President Margaret
Alva filed her papers. No leader
from the Trinamool Congress
or the Aam Aadmi Party
was present during the
nomination filing of the joint
Opposition candidate.
The House adjournments
followed protests, led by
Congress leader Rahul Gandhi
and Opposition Members of
Parliament (MPs), including
Supriya Sule of the Nationalist
Congress Party, Ram Gopal
Yadav of the Samajwadi Party,
and Priyanka Chaturvedi of the
Shiv Sena. Standing before the
Mahatma Gandhi statue out-
side Parliament, Opposition
leaders demanded roll-back in
the prices of liquefied petrole-
um gas. They also held banners
and placards which read: ‘High
inflation, continuous price rise
badly affecting common citi-
zens. How will they survive?’
Congress MPs from both
the Houses took part in the
protest. They included the
Leader of Opposition in RS
Mallikarjun Kharge and the
Leader of Congress in LS Adhir
Ranjan Chowdhury. “The
imposition of 5 per cent GST
on curd, paneer, and other
commodities of daily use will
hurt the common man. We will
protest inside the House as
well,” said Kharge.
Congress Whip in LS,
Manickam Tagore, said
Opposition members led by his
party wanted a discussion on
price rise and GST, but the gov-
ernment did not allow it and
the Speaker adjourned the
House till 2 pm. The House was
later adjourned for the day. The
MONSOON
SESSION
IN THE
HOUSE
FM: Supply-side
steps taken to
cool inflation
Prices of major
essential
commodities are
monitored by the
government on a
regular basis and corrective
action is taken from time to
time, said Union Finance
Minister Nirmala Sitharaman
in a written reply to the Rajya
Sabha. The measures included
cut in import duties and cess on
pulses, rationalisation of tariffs,
and imposition of stock limits
on edible oils and oil seeds. PTI
1,000 complaints against Air India in 3 months
Around 1,000 passenger
complaints have been
received against Air India
during the past three
months related to various
issues, including refund of
fares, overbooking of flights,
protest also came after the RS
secretariat issued a circular say-
ing no protest or demonstra-
tion would be allowed inside
the Parliament complex.
“The rupee has touched
~80. Gas cylinder delivery
agent asking for ~1,000. 13 mil-
lion unemployed people in
June. GST burden on food-
grain. No one can stop us from
raising public issues. The gov-
ernment will have to answer.
Running away from discussion
and questions in Parliament is
most ‘unparliamentary’,
Mr Prime Minister,” he
tweeted in Hindi.
In a Facebook post, the
392,000 Indians gave up
citizenship in last 3 years
More than 392,000
Indians gave up their
of External Affairs,
individuals renounced
citizenship in the past
three years and 170,000
Indian citizenship for
reasons personal to them
of them, the highest, and took citizenship
took up American
citizenship, Lok
in over 120
countries.
Sabha was informed
on Tuesday. Union
A total of 3,92,643
Indians gave up their
Minister of State for
Home Nityanand Rai said
citizenship in 2019,
2020 and 2021, he said in a
that according to details written reply to a
provided by the Ministry question. PTI
Inclination towards radical
ideologies minuscule: Govt
Radicalisation by terror groups like ISIS and
Al Qaida is a major problem faced by
countries, and some foreign agencies have
been making efforts to radicalise people in
India, Union Minister Nityanand Rai said
on Tuesday. However, inclination towards
radical ideologies in India is minuscule as
compared to the population of the country, he said. PTI
and staff behaviour, last year. Aviation
Minister of State for regulator DGCA last
Civil Aviation V K month imposed a fine
Singh said on Monday. of ~1 million on it for
The Tata group in denying boarding for
January took control of Air valid tickets and not
India after winning the bid providing compensation. PTI
Congress leader also dubbed heaters, packaged wheat, but-
the government as ‘extortion- termilk, paneer, etc on which
ist’ and said, “No matter how tax was raised ‘extortionately’.
much the Prime Minister (PM) As the Supreme Court
tries to silence us by terming referred the issue of all public
many words as ‘unparliamen- interest litigations on the new
tary’, he will have to answer”. military recruitment scheme
Gandhi said when the PM Agnipath to the Delhi High
was in the Opposition, he had Court, Gohil said the country
made inflation the biggest must take cognisance of the
issue, but today he has pushed fact that military recruitment
the public into a ‘deep henceforth will be done for a
quagmire of problems, in job that will have a three and
which people are getting a half year tenure on contract,
drowned every day’. with six months of training,
Congress Spokesman no pension, no health
Shaktisinh Gohil said the facilities, and no prospect of
items on which GST had been promotion. This was nothing
hiked included solar water but exploitation.
10 WORLD
>
MUMBAI | WEDNESDAY, 20 JULY 2022

IN BRIEF
Antitrust lawsuit
Google to allow app Apple follows fellow tech over Apple Pay
Apple was hit with an antitrust lawsuit

makers to use rival giants to rein in hiring

over Apple Pay, accused of using its
market power in the mobile device
industry to fend off competition from

payment systems
other payment card issuers.
The class-action complaint was filed
iPhone maker is also looking to limit expenditure; currently, it has no plan to cut jobs Monday in federal court in San Jose,
California.
FOO YUN CHEE
Brussels, 19 July
pressure with offers of
concessions rather than
MARK GURMAN & NICK TURNER
19 July A RISING HEADCOUNT The iPhone maker “exercises its market
power in the device
embark on lengthy and Number of employees at Apple markets by requiring

A
Alphabet unit Google said it will distracting fights. pple is the latest major technology com- that consumers of its
from Tuesday cut fees to 12 per The EU rules known as the pany to rein in hiring and spending
2015 110,000 mobile devices also
cent, from 15 per cent, for non- Digital Markets Act, which will plans, adding to the evidence that even acquire its mobile
gaming app developers on its come into force next year, Silicon Valley stalwarts are worried about a 2016 116,000 wallet — Apple Pay —
Google Play App Store which require tech giants to allow app recession in the coming months. and prevents consumers
switch to rival payment developers to use rival payment The iPhone maker is looking to limit expen- 2017 123,000 from using competing mobile
systems, as it moves to comply platforms for app sales or risk ditures and job growth at some of its divisions, wallets capable of offering competing tap

FY
with new EU tech fines of as much as 10 Bloomberg reported Monday, though Apple 2018 132,000 and pay solutions,” according to the
rules. per cent of their hasn’t adopted a companywide policy. The complaint by Affinity Credit Union.
The world's most global turnover. more cautious stance mimics the approach of 2019 137,000
popular internet Apple and Google its tech peers, including Amazon.com,
search engine said are the most affected Alphabet’s Google, and Microsoft, which have 2020 147,000
the fee cut applies by this requirement. all taken steps to decelerate spending.
2021 154,000
only to European "As part of our
consumers while the Google will cut efforts to comply
The news sent stocks sliding and increased
trepidation surrounding tech earnings season, Source: Bloomberg
Antitrust violation:
freedom to use
another payment
fees to 12%
from 15% for
with these new rules,
we are announcing a
which goes into full swing this week. It may
be difficult for companies to reassure jittery expects to end the year with increased head- few hundred jobs in June, and Peloton just
Russia to fine Apple
system will non-gaming new programme to investors. International Business Machines count. But it follows a move in May to slow hir- announced plans to shutter its in-house man- Russia’s competition authority said on
eventually be app developers support billing Corp. posted better-than-expected sales ing at the Windows, Office and Teams divisions ufacturing. Tuesday it would fine US tech giant
expanded to gaming on its Google alternatives for EEA growth Monday, only to see its shares slip in “as Microsoft gets ready for the new fiscal year.” Facebook parent Meta Platforms has cut Apple for violating Russian antitrust
apps as well. Play App Store (European Economic late trading. Last month, Tesla Inc. laid off hundreds of spending and slowed hiring for some senior- laws and abusing its dominant position
The move Area ) users," Estelle For now, most of the biggest tech com- workers and shuttered a California facility level positions. In April, the company in the app store market. The federal anti-
underscores a change in Werth, Google's director for EU panies aren’t talking about eliminating jobs, devoted to its Autopilot self-driving technol- announced plans to slash expenses by $3 bil- monopoly service (FAS) said it would levy
Google's strategy since last year government affairs and public just reducing the rate of hiring. And overall US ogy, according to people familiar with the lion this year. The idea is to refocus Meta’s pro- a turnover-based fine against Apple, the
where it now prefers to bow to policy, said in a blogpost. job growth hasn’t stalled. Payrolls increased matter. duct teams on core priorities, like the meta- size of which would be determined during
regulatory and antitrust REUTERS 372,000 in June, beating the 265,000 estimate, Chief Executive Officer Elon Musk said ear- verse and its TikTok clone, Reels. the course of an administrative
with manufacturing jobs helping bolster the lier that layoffs would be necessary in an Meta also halted development on one of its investigation.
numbers. The US added 25,000 information increasingly shaky economic environment. He early smartwatch prototypes and repositioned Moscow has long objected to foreign
Rishi Sunak tops new vote jobs in June, putting that category 105,000
higher than just before the pandemic.
clarified in a subsequent interview with
Bloomberg that about 10% of salaried employ-
its in-home video device, Portal, to focus more
on business customers instead of regular con-
tech platforms' influence in the Russian
market, but the simmering dispute has
to edge closer to final spot But some tech companies are going as far
as cutting jobs. That includes Microsoft, which
ees would lose their jobs over the next three
months, though the overall headcount could
sumers.
Last week, Google CEO Sundar Pichai told
escalated since Russia invaded Ukraine in
February. “The company has abused its
Rishi Sunak (pictured) topped another round of said last week that it was eliminating some be higher in a year. staff that the company planned to slow hiring dominant position in the iOS app
voting to edge even closer to his place as one of two positions as part of a reorganization. Former pandemic highfliers like Netflix and for the remainder of 2022 — a rare move for distribution market," the FAS said in a
candidates who will go head-to-head to be elected The reduction affects less than 1% of its Peloton Interactive also have been laying off the internet giant, which typically adds tens of statement.
the new Conservative Party leader and British PM, as 180,000-person workforce, and Microsoft still workers in recent months. Netflix trimmed a thousands of employees every year. BLOOMBERG BLOOMBERG & REUTERS
Kemi Badenoch became the latest candidate to be
out of the running. The British Indian former
Chancellor received 118 votes in the fourth round of voting by his
party colleagues, just shy of the 120-mark – or one-third of
Conservative Party MPs – needed to confirm his place as one of the China yield curve Xi’s Beijing 4O0C IN LONDON & IT WILL GET HOTTER STILL
final contenders in the race to replace Boris Johnson. PTI
invite ignored
As his war on Ukraine rages,
is steepest in 2 yrs by top Europe
Putin in Iran on key visit as liquidity swells leaders
BLOOMBERG
BLOOMBERG YIELD SPREAD: 10-YEAR, 19 July
19 July 1-YEAR GOVT BONDS
(In bps) Top European leaders have
China’s yield curve has left President Xi Jinping
become the steepest in two hanging over an invitation to
years as a combination of flush meet him in Beijing later this
liquidity and speculation the year, according to the South
central bank will keep policy China Morning Post, as ten-
accommodative pushes down sions fray between Beijing
rates on shorter-maturity debt. and the bloc.
The extra yield on the But later in the day,
nation’s 10-year bonds over China flatly denied the
Russian President Vladimir Putin (left) and Iranian President one-year securities widened to report. “I don’t know what’s
Ebrahim Raisi at a meeting in Tehran on Tuesday PHOTO: REUTERS 93 basis points this week, the their source of information,”
most since June 2020, and up Chinese Foreign Ministry
Russian President Vladimir Putin visited Tehran for talks with from as little as 45 basis points spokesman Zhao Lijian said
Iranian Supreme Leader Ayatollah Ali Khamenei, the Kremlin in December. At the same on Tuesday, referencing the
leader's first trip outside the former Soviet Union since Moscow's time, longer yields are being the financial system for the report. “I can tell you that is
February 24 invasion of Ukraine. In Tehran, Putin will also hold his kept from falling due to expec- first time since June through fake news.” An ice cream vendor uses a bottle of water to cool down during hot weather in London. The
first face-to-face meeting since the invasion with a Nato leader, tations for an economic recov- raising the size of its daily The newspaper, citing a heat wave has been causing “huge surge” of fires, with temperatures in the city crossing 400C,
Turkey's Tayyip Erdogan, to discuss a deal aimed at allowing the ery and the prospect of short-term cash injection to 12 person familiar with the mayor Sadiq Khan said. The UK shattered its record for the hottest temperature on Tuesday
resumption of Ukraine's Black Sea grain exports as well as peace in additional debt issuance. billion yuan ($1.8 billion) on matter, reported that and the weather forecaster predicted it would get hotter still in the country PHOTO: REUTERS
Syria. Putin’s trip, which comes just days after US President Joe The nation’s shorter bonds Monday from 3 billion yuan. German Chancellor Olaf
Biden visited Israel and Saudi Arabia, sends a strong message to have surged since the start of Scholz, French President
the West about Moscow's plans to forge closer strategic ties with July as a consumer boycott of Very flush Emmanuel Macron, Italian
Iran, China and India in the face of Western sanctions. AP/PTI mortgage payments has fueled
speculation the People’s Bank
of China will delay any plans
The steeper yield curve may
be implying very flush front-
end liquidity and expectations
Prime Minister Mario
Draghi, and Spanish Prime
Minister Pedro Sánchez have
Yellen touts ‘friend-shoring’
Pakistani rupee drops to
as fix for global supply chain
to tighten liquidity. The secu- of more tolerance from the been invited to meet the
rities have also rallied after a PBoC, said Albert Leung, a Chinese president in Beijing
fresh low; $ bonds decline report last week showed gross
domestic product slowed to
strategist at Nomura
International in Hong Kong.
this November.
The governments of
BLOOMBERG position and financing 0.4 per cent last quarter, far Investors appear hesitant to France, Italy and Spain did BLOOMBERG
19 July conditions” and risks to the below the nation’s 5.5 per cent add longer duration due to not respond to questions on 19 July FRIEND-SHORING IS
implementation of its annual growth target. some expectations of a growth the matter, while the
Pakistan’s rupee slumped to a International Monetary Fund The PBoC responded this improvement and higher Chinese authorities declined US Treasury Secretary Janet
ABOUT DEEPENING
fresh record low and the program. week by adding liquidity into bond supply, he said. to comment and the German Yellen called on “trusted” US RELATIONSHIPS AND
nation’s stocks and dollar- “Political uncertainty is back government refused to allies to strengthen trade rela- DIVERSIFYING OUR SUPPLY
denominated bonds both fell again,” said Abdul Kadir answer, the newspaper tionships to shore up global
CHAINS WITH A GREATER
after Fitch Ratings cut the
country’s credit-rating outlook.
Hussain, head of fixed-income
asset management at Dubai-
Chinese regulators to fine Didi reported. It wasn’t reported
when the invitation was
supply chains disrupted by
Covid, worsened by Russia’s NUMBER OF TRUSTED
The rupee slid 3.2 per cent to
close at 221.99 per dollar, while
based Arqaam Capital.
“USD/PKR goes higher, default
over $1 billion for data breaches sent.
The Beijing huddle
war in Ukraine and threatened
longer term by a reliance on
PARTNERS TO LOWER RISKS FOR
OUR ECONOMY AND THEIRS"
the benchmark stock index slid risk rises, but also questions Chinese authorities are pre- ing for about 4.7 per cent of would coincide with the China. In her longest public
2.4 per cent, and dollar bond arise around the IMF deal. All of paring to impose a fine of Didi’s $27.3 billion total reve- Group of Twenty summit address during a three-stop JANET YELLEN
due in April 2024 were it is causing meltdown.” more than $1 billion on ride- nue last year. They declined scheduled to be held in Bali tour of East Asia, Yellen touted US Treasury Secretary
indicated 14.2 cents lower, the The rupee has tumbled to a hailing firm Didi Global, to be identified as the infor- from November 15-16. It her “friend-shoring” concept
biggest drop ever, at 53.15 per succession of all-time lows in people familiar with the mation was not yet made would also likely follow a as a way to reduce the vulner- deepening relationships and opment facility in Seoul run by
dollar. recent days as escalating matter said, a move that could public. The Wall Street Journal major Communist Party abilities of a supply system diversifying our supply chains conglomerate LG. “In so doing,
Fitch downgraded its political uncertainty has added bring an end to a probe into first reported the potential size congress in China, sched- badly strained over the past with a greater number of we can help to insulate both
outlook to negative Tuesday, to concern over the country’s the firm's cybersecurity prac- of the fine earlier on Tuesday. uled for the second half of two years, and as a mechanism trusted partners to lower risks American and Korean house-
citing concern over a bailout deal with the IMF, tices. The people said the fine The ride-hailing firm did not this year, where Xi is set to for reducing inflation in the US for our economy and theirs,” holds from the price increases
“significant deterioration in which it needs to avoid a would be more than 8 billion immediately respond to a be handed a landmark third and elsewhere. Yellen said, in a speech deliv- and disruptions caused by geo-
Pakistan’s external liquidity default. yuan ($1.28 billion), account- request for comment. REUTERS term in office. “Friend-shoring is about ered at a research-and-devel- political and economic risks.”

A first in 44 years: Lankan Parliament to directly elect President

PRESS TRUST OF INDIA
Colombo, 19 July
For the first time in 44 years,
Sri Lanka’s Parliament will
directly elect a president on
Wednesday in a three-way
contest, with last minute
political maneuvering
projecting a close fight
between acting President
Ranil Wickremesinghe and
Dullas Alahapperuma, a rebel
leader of the ruling party who
is backed by the opposition as
well as a majority of
lawmakers from his parent
party.
Wickremesinghe,
Alahapperuma and leftist
Janatha Vimukthi Peramuna
(JVP) leader Anura Kumara
Dissanayake were proposed
by lawmakers on Tuesday as
the three candidates for the
July 20 presidential election
to pick the successor to
Gotabaya Rajapaksa after he
resigned following a popular
uprising against his
government for
mismanaging the economy
that forced him to flee the
country.
A majority of members of
the ruling Sri Lanka Podujana
lead, the evidence of numbers
in the 225-assembly doesn’t
necessarily suggest it would
be plain sailing. Without the
ruling SLPP’s backing,
Wickremesinghe would be a
non-starter as he only has his
seat in Parliament to be in the
reckoning.
Going back to the original
A close fight is likely between acting President Ranil Wickremesinghe (left) & Dullas Alahapperuma parliamentary composition
(centre), a rebel SLPP leader. Janatha Vimukthi Peramuna’s Anura Dissanayake is also in the fray in August 2020, the SLPP
number of 145 had seen
Peramuna (SLPP) party was in principal Opposition leader Wednesday’s presidential reversals with 52 of the
favour of nominating Sajith Premadasa as the Prime election. lawmakers breaking away.
Alahapperuma, a leader of its Minister, Chairman of the Although analysts here The total of 93 later became 97
breakaway faction, for the SLPP, G L Peiris, said on believe that 73-year-old with 4 lawmakers returning.
post of the President and Tuesday, ahead of Wickremesinghe is in the Wickremesinghe needs 16
more votes to cross the
magical figure of 113 in the
225-member house. He relies
on at least 9 of the 12 Tamil
party votes plus enough
defectors from the main
opposition Samagi Jana
Balawegaya (SJB), most of
whom are his followers
having been introduced to
politics by him.
In a politically significant
move, Premadasa, the leader
of the principal opposition
party SJB, on Tuesday backed
out in favour of
Alahapperuma.
The SJB’s original 54 was
recently down to 48 and later
swelled to 50 after two
lawmakers returned. With the
SJB bag of 50, plus
Alahapperuma’s own 10
lawmakers and 28 from other
SLPP breakaways his final
tally could reach about 90. So
he needs about 25 from the
SLPP.
However, the most
decisive factor which could
swing it towards
Wickremesinghe is the
personal insecurity of the
SLPP MPs. Over 70 of them
suffered arson attacks with
one murdered.

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OPINION 11
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Volume XXVI Number 237 ILLUSTRATION: BINAY SINHA

MUMBAI | WEDNESDAY, 20 JULY 2022 cial transactions. Once it has been made operational
among these partners, it could then invite other cen-
tral banks to participate. In effect an alternative cross-
The weaker side of generosity border payment system would be established bypass-
ing the US dollar-based system. It would also permit
the bypassing of unilateral sanctions of the kind that
High dividend payouts reflect low growth expectations have been imposed on Russia in the wake of the

A
n analysis of India’s largest corporations — those comprising the Ukraine War. It is surprising that Russia has not been
BSE500 index — shows dividend payouts, which are profits repatri- invited to take part in this pilot but perhaps its par-
ticipation is taking place in a discreet manner. China
ated to shareholders, have grown steadily over the past five financial
looks to countries which are part of its ambitious Belt
years even as profit growth has faltered. The index covers every and Road Initiative to join in the M-CBDC project.
sector and includes public sector undertakings (PSUs), as well as overseas Before that a whole host of issues will need to be
subsidiaries of Indian-owned private-sector businesses. So this indicates a resolved, including the security of national financial
broad trend. data and interoperability procedures. This is still a
In each of the last five financial years, these companies have paid at least work in progress but China is way ahead of other
30 per cent of aggregate net profit as dividend. Aggregate dividend has grown major economies, including the US.
from ~1.76 trillion in 2017-18 to ~3.02 trillion in 2021-22. Cumulatively, over the China has been alarmed by the imposition of
period concerned, 34 per cent of profit has been distributed as dividend. This sweeping economic and financial sanctions against
Russia in the wake of the latter’s aggression against
is an extraordinarily high payout ratio, especially since India is classified as a

Understanding the
Ukraine. There is fear that it could be the next target.
high-growth emerging economy. America’s S&P 500, which includes the largest This has given a serious impetus to the e-yuan proj-
companies operating in the world’s largest and most mature economy, had a ect, in particular its possible role in the internation-
lower payout ratio of 30 per cent in the same period. alisation of the Chinese currency and the establish-
A trend of high dividend payouts has negative implications. The rela- ment of an alternative international payment system

tionship between corporate profit, dividend, and retained profit indicates
management expectations about growth prospects. High dividend payouts
are associated with expectations of low growth.
Profits are the cheapest form of funding available. They can be used to
pay down debt, reinvested to grow existing business lines, or used to create
revenue streams. If instead, they are being handed back to shareholders, the
implication is that the management believes it cannot re-invest in the business
itself for higher returns. When this occurs across sectors, it suggests overall
confidence in growth is low. What is more, this has been the case for the last
five financial years.
e-yuan initiative
free of the US and Western domination. Many other
countries would be attracted to this initiative because
there is a general unhappiness over the American
unilateral resort to economic sanctions in pursuit of
its geopolitical aims. Even the west European coun-
There is merit in carefully examining the recent tries are resentful of this American power to impose
punitive sanctions on adversaries and friends alike.
developments in China’s sovereign digital currency space India, too, would welcome a financial order that does
not give any particular country an inordinate
and participating in it if India’s interests are served influence and ability to inflict unilateral economic
pain on others.

There are complicating factors of course. Profit-making PSUs have always
been encouraged to hand out large dividends to shore up government finances.
They do this regardless of their growth prospects. Also, until recently, dividends
were tax-free in the hands of recipients, which meant promoters preferred to
use this tax-efficient route to reward themselves (and minority shareholders).
But the amount of dividend payout has increased since the tax law was changed
to make dividend liable to income tax. Also, it led to a spate of buyback offers
since buybacks became more tax-efficient. Companies have also paid down
debt, which is of course beneficial in that it reduces interest costs.
The broad logic remains valid. In an environment in which corporations
see prospects of high growth, they will reinvest larger shares of profits to cap-
ture that growth in the cheapest way. Since India’s promoters have not done
so, over an extended period and across a wide range of sectors, they don’t see
high growth prospects.
This is paradoxical at first glance since corporate profits in this universe
have grown from ~4.8 trillion in 2017-18 to more than ~10 trillion in 2021-22.
But while profits have more than doubled, revenues have grown only 47 per
cent. Profit margins have improved due to cost-cutting measures and lower
interest rates. Companies did not need to expand capacity much from pre-
pandemic levels. There is a limit to enhancing profit margins. The next stage
of recovery must be driven by overall demand expansion, and by capacity
expansion driven by rising demand.
Caution over rupee
RBI must keep an eye on its reserves as dollar strengthens
C
hina launched its digital currency, the e-yuan,
at the Beijing Winter Olympics in February
this year, after running a series of pilot proj-
ects in major cities. The e-yuan operates through
digital wallets, much like the Chinese digital pay-
ment platforms of Alipay and WeChat, but it is
issued and managed by the People’s Bank of China
(PBOC), the central bank.
It is reported that currently there may be over
140 million e-yuan wallets in use by individuals and
10 million by businesses. The trans-
action value achieved is about 10 per
cent of the total, compared to the 90
per cent still conducted through
Alipay and WeChat. There is inter-
operability among the platforms.
Alipay handles 544,000 transac-
tions per second (TPS) against a
mere 10,000 TPS for the e-yuan. The
digital sovereign currency still has
a long way to go. The PBOC has also
let it be known that the e-yuan will SHYAM SARAN
be developed without impacting on
financial intermediation by banks, which will con-
tinue to receive deposits and pay interest on savings.
The e-yuan does not offer any interest. There has
been a deep concern over the prospect of the tradi-
tional banking system being rendered obsolete by
digital finance, since virtually all the services offered
by banks could be incorporated in the new system.
This may eventually be unavoidable.
The current debate in China is focused on two key
issues. One is concerning the collection, scrutiny and
protection of data generated through the use of e-
yuan wallets. In theory, the state would have access
to the spending behaviour of all e-wallet users and
this would enable even more pervasive surveillance
of wallet users. The issue of privacy is being raised
both with respect to the private payment platforms
and the state-run platform. However, there is greater
concern over the state’s access to data and this may
be slowing the adoption of the e-
yuan. There appears to be greater
trust in private platforms, but then
the state has legal right to all the data
gathered by them.
Second, the digitisation of the
Chinese currency has been seen as
a relatively safer route to its interna-
tionalisation. China is averse to
adopting a fully convertible cur-
rency with no controls over capital
flows. It wants to achieve interna-
tionalisation without risking volatil-
ity and capital flight. A cross-border payment system
is currently being tested in a pilot involving China,
Hong Kong, Thailand and the UAE. It is known as
the Multiple Central Bank Digital Currency or the M-
CBDC. The objective is to permit real time foreign
exchange transfer on a 24X7 basis. The system ought
to permit no disruption, interoperability and compli-
ance with local laws and regulations relating to finan-
There is merit in studying the Chinese initiative
carefully and participating in it if our interests are
served. It would also enable India to shape the con-
tours of the new financial architecture in line with
its interests, much as we had been able to do in the
establishment of the Asia Infrastructure Investment
Bank and the BRICS Development Bank. India has
already announced its intention to create its own
digital rupee. This project should also take into
account the possibilities of its participation in an
international digital payments system, which may
reduce transaction costs but also provide a rule-
based digital global financial system. One should not
pursue a digital sovereign currency merely because
other countries are racing to adopt it. There needs
to be a careful examination of the pros and cons from
India’s perspective. Having followed the debate in
China on the subject, it appears to me that the idea
of a digital sovereign currency is here to stay. It is
also apparent that the contours of an alternative
international payments system based on digital sov-
ereign currencies are also being worked out under
Chinese lead but with the participation of some other
developing countries. Our cordial relations with the
UAE and Thailand should enable us to get a sense of
how this initiative is unfolding even if it is premature
to seek active participation in it. We should not
merely watch from the sidelines.
The writer is a former foreign secretary and a

I
n the course of the day’s trading, the rupee hit a new low of 80.06 against
the dollar on Tuesday. It soon recovered slightly, staying steady and
closed the day at 79.95 to the dollar. The currency has lost about 7 per
cent of its value since the beginning of the year. Some Asian and emerging
market currencies have done worse, a few more have done better. One index
of the dollar vs Asian currencies indicates that the general slide for the latter
against the former this year is of about 6.5 per cent, indicating that the rupee
is doing a little worse than its peers. It has, for example, lost about 1.3 per cent
against the yuan in the year to date.
Emerging market currencies have, however, in general done better in
the context of a rising dollar than some hard currencies. The Japanese yen,
for example, has lost almost 20 per cent in value against the dollar since
January 1. Analysts’ expectations for the rupee are more bearish than for
most of its peers, expecting it to underperform in the current quarter. These
predictions cite the $30 billion of foreign flows that have exited Indian equities
this year, the increasing unattractiveness of the real carry trade and the wide-
ning trade deficit in India. The forwards market is pricing in a further 3 per
cent depreciation against the dollar, and 2.5 per cent in terms of the real
effective exchange rate (REER) till the end of the year. One or two other cur-
rencies may do worse, especially the Korean won, which is also vulnerable to
shifts in global fuel prices.
The onus is on the Reserve Bank of India (RBI) to manage this fraught
moment responsibly. There are concerns in both the RBI and in the Union
finance ministry about the inflationary effect of rupee depreciation. But the
way to fight inflation is through the repo rate. Market participants have said
that the RBI has intervened heavily in the foreign exchange trade; it is to be
hoped that this is merely to ensure a managed depreciation till the rupee finds
a new and lower fair value against the dollar. The central bank data shows that
India’s foreign exchange reserves have dropped by as much as $52 billion since
March. Some of this is due to the falling dollar value of non-dollar hard currency
reserves, and the rest due to interventions in the spot market.
The erosion in the reserves might not be in quantitative terms of great
concern when it is compared to the current size of reserves in total. On July 1,
the RBI reported reserves of $588 billion, which is much larger than, for exam-
ple, during the taper tantrum of 2013. This means that there are enough
reserves in the kitty to pay for over 10 months of imports. It is when the
reserves dip below eight months of imports or so that there has been trouble
in the past. Yet there is no question that the RBI and the government should
be watchful. A further spike in global fuel prices would have a cascading effect
on the import cover of reserves. The RBI, therefore, would be wise to limit its
intervention and facilitate a calibrated adjustment in the rupee value.
senior fellow, CPR
Legislation: Intent and interpretation
T
he Insolvency and Bankruptcy Code (IBC), supervise the process of resolution but not make busi- cial wisdom while OCs may not. According to this
2016, is founded on the basic principles of eco- ness decisions. The BLRC explicitly avoided insolvency ruling, the AA has to be satisfied of the existence of
nomics. Default is an outcome of market forces as the trigger for the CIRP and chose default to reduce default and must not look into the commercials of
and it must be resolved by the market. The IBC, the burden on the AA for speedy admission. the CD in the case of an application by an OC, who
therefore, provides for a corporate insolvency res- The IBC accordingly envisages quick admission does not have commercial wisdom. However, it must
olution process (CIRP) to rescue a corporate debtor to get faster and better outcomes. Quick admission look into the commercials of the CD to ascertain
(CD) in default, or close it, as the market considers is possible if the parties and the AA use a simple test insolvency in the case of application by an FC.
expedient. This includes initiating the CIRP. It is the and default fits the bill. This seemed to be the settled Similarly, this ruling empowers the AA to reject an
market that takes the call whether to initiate the position of the law for initiating the CIRP until the application of an FC even if it is satisfied there is
CIRP in case a CD defaults, considering the reasons recent ruling of the Supreme Court in Vidarbha default, and admit an application even where there
for its default, the options available to deal with the Industries Power Limited vs Axis Bank Limited. is no default. Thus, the AA can foist the CIRP on a
default, the feasibility and viability of the business The court has interpreted section 7(5): “Where the CD that has not even defaulted. Further, a market
of the CD, etc. Adjudicating Authority is satisfied that — (a) a default economy works if a decision maker faces the con-
Section 6 of the IBC provides for initiating the has occurred … it may, by order, admit such applica- sequences of its actions. Markets fail if an FC suffers
CIRP only when a CD has defaulted. The notes on tion; or (b) default has not occurred … it may, by order, consequences where the AA does not admit an appli-
clauses appended to the IBC Bill elab- reject such application.” Relying on cation or keeps the admission in abeyance.
orate the approach and rationale of the word “may”, it held that it was The ruling has somewhat modified the basic
the provision. It explains that a sim- erroneous that there was no option premise of the IBC. It considers the CIRP to be a pen-
ple test of default for entry into the for the AA but to admit an appli- alty, which it is not. It considers the CIRP necessary
CIRP permits early intervention for cation filed by an FC where the CD only if a company is insolvent or bankrupt, which
better outcomes. is in default. Noting that no extra- excludes timely action to rescue it. The ruling
Section 7 requires a financial cred- neous matter should come in the requires the AA to examine the viability and overall
itor (FC) to provide proof of default for way of admission, the court ruled financial health of the CD, for which it is not
initiating the CIRP and the the viability and financial health equipped. The parties may present different views
Adjudicating Authority (AA) “shall” of the CD were not extraneous. on the health of the CD, which may make the admis-
ascertain default within 14 days. The Initiating the CIRP arises only if a sion process adversarial. With the simple default test
notes on clauses explain that proof of C K G NAIR & M S SAHOO company is bankrupt or insolvent today, admission is often taking years. With the test
default ensures that an FC does not and not otherwise. It is certainly of the insolvency and financial health of the CD, cou-
file applications for extraneous considerations. It not the object of the IBC to penalise solvent com- pled with the AA’s discretion to hold admission in
states that once the AA is satisfied that there is panies temporarily defaulting in repaying its finan- abeyance indefinitely, admission may take much
default, it “shall” admit the application. This ensures cial debts, by initiating the CIRP. Therefore, it is dis- longer, as against the legislative intent of 14 days.
that the parties do not abuse the legal process to cretionary for the AA to admit an application of an The IBC was enacted because of the sickness of
delay the admission. FC for initiating the CIRP. It may keep the admission the Sick Industrial Companies Act (SICA). The order
The legislative intention is a simple test of default in abeyance and there is no time limit within which on Vidarbha Industries may take the IBC to the path
to be applied for initiating the CIRP and neither the such an application has to be admitted. However, in of the repealed SICA, at an enormous cost to the
parties nor the AA must use any other consideration the case of an application by an operational creditor economy.
for initiation, which can delay the admission. This is (OC), it is mandatory for the AA to admit the appli-
in sync with the design principles devised by the cation if it is satisfied that there has been default. The writers are, respectively, director of National Institute of
Bankruptcy Law Reforms Committee (BLRC). A key With this ruling, several anomalies have surfaced. Securities Markets and distinguished professor at National
principle underlying the IBC is that the AA must The IBC rests on the premise that FCs have commer- Law University, Delhi

The new science of a lost art response to the obstacles to progress.
The core, therefore, is to discover the
critical obstacles and to design a
coherent set of actions to overcome
those obstacles.
He had also articulated what good
BOOK REVIEW strategy is not. Good strategy is not an
overarching vision, nor the high
R GOPALAKRISHNAN ambition of a leader. It is not about the
motivation of people. Think about the
rarily seducing, but is not of any
permanence, because it represents
legitimate and great ambition, but it is
not strategy.
Identifying the key obstacles to
achieving ambitions is essential before
a management can think of actions to
overcome them. In his second book, Dr
Rumelt has devoted his writing to this
process. Borrowing the term crux from
tions, simultaneous with the day-to-
day operations working effectively in
their silos. The methodology is not
intellectual, it is tedious. It involves: (i)
widespread consultation, (ii) distilla-
tion to the most important amidst
many important obstacles; (iii) articu-
lating the obstacles unambiguously;
and (iv) designing actions that will
untangle the crux.
From my own observations, I imag-
ine the crux that must have been identi-
fied by Hindustan
The Crux: How
shareholding under the Foreign
Exchange Regulation Act and mis-
guided labour unions were both seen as
crux. Between T Thomas and Ashok
Ganguly, the battle with policy was
waged relentlessly for over a decade
until Unilever was permitted 51 per cent
and the labour difficulties were untan-
gled by dispersed manufacturing.
Susim Datta faced the challenges of
liberalisation. He addressed the crux of
growth and quality challenges and
adopted appropriate
about how it stacked up against peers.
The warts in the reflection delivered
the message for action. Dr Rumelt is
persuasive against the corruption of
real strategy. Fluffy words, inspiration,
motivation, catch phrases, all have a
role, but should not be confused with
strategy, he argues.
Recently, one of my client com-
panies requested advice on how the
company can execute a strategy of
growing revenue by 3X within five
years. I explained that growth is the

R
ichard Rumelt is a senior aca-
demic and an emeritus chair at
the UCLA Andersen School of
Management. He is considered by
McKinsey to be the “strategist’s strate-
gist”, suggesting that he is a strategy
guru. This book is a sequel to his ear-
lier book, Good Strategy, Bad Strategy,
published in 2011. Judging purely from
his writing style and content, he comes
through as a thinker, sans the flair and
flamboyance that some academics
display in spades. For a subject like
strategy, this is a positive trait.
His articulation and approach
resemble, in my view, the style of a
Clayton Christensen.
In his 2011 book, Dr Rumelt had
declared what a good strategy is. A
good strategy is a specific and coherent
strategy sessions that you may have
participated in. Most likely, many were
rich with words such as vision, mission,
goals. They perhaps were so artfully
packaged in jargon and so intellec-
tually seductive that unless you are
willing to admit that you had not
understood, the words could pass off as
great strategic thinking.
Think of British Airways several
years ago adopting a strategy to be “the
most respected company in their field
through global leadership, growth, and
high shareholder return”. Outside of
business, think about national-level
“strategies” such as doubling farmers’
income, rooting out black money,
vocal for local, and you will see how
alliterations, catch phrases, bombast
and fluff play out. Bombast is tempo-
mountaineering, Dr Rumelt argues
that it represents the most critical
challenge to the desired progress. For
any organisation, the list of obstacles
and challenges is labyrinthine, thus
masking what the author calls the
“gnarly challenge.”
Gnarly challenges share certain
characteristics. They retard a clear def-
inition of what the real obstacle is, and
hence, they invariably attract a bundle
of ambitions as possible solution.
Further, the connection between the
proposed actions and the outcome are
unclear. This valid statement exem-
plifies why gnarly problems have to be
distilled down to a crux in a disci-
plined methodology. Gnarly chal-
lenges require focused coordination of
multiple activities across many func-
Lever in its journey methodologies to sig- consequence of strategy, it is at best an
over eight decades. I
Leaders Become nificantly enhance ambition, but it is not a strategy.
was not the strategist
Strategists quality of products Strategy is like breathing. Good breath-
in the cases mentioned Author: and processes. ing and good strategy both require
here, but was an active Richard Rumelt Similarly, as India lib- leaders to learn techniques, and engage
player in teams of Publisher: eralised, Ratan Tata with disciplined practice. Ask Baba
strategic execution. In Profile Books identified the crux for Ramdev or read James Nestor’s recent
the 1930s, the crux was Pages: 368 the Tata Group after book on breathing. If you breathe well
to develop an Indian the six-decade chair- or adopt a crux-overcoming strategy,
cadre of management. Price:: ~699 manship of an iconic you improve the chances of a success-
Untangling this crux J R D Tata as trans- ful outcome, which may approach your
took 25 years before Prakash Tandon forming to global competitiveness. The ambitions — no assurances.
was appointed chairman, the first first step was awakening the leadership I like James Nestor’s description of
national in any overseas Unilever com- to squarely face the real challenge of good breathing as “a new science of a lost
pany. In the 1950s, raw material supply corporate excellence. He did this by art.” Dr Rumelt’s non-fuss, deep book
was identified as the crux. This led to advocating the adoption of the Tata perhaps merits the same descriptor for
the setting up of a research centre, the Business Excellence Model and the strategy as a new science of a lost art.
first for Unilever in any overseas coun- Tata Code of Conduct. On an annual
try, under Cambridge-educated S basis of measurement, the exercise The reviewer is an author and corporate
Varadarajan. In the 1970s, Unilever held a mirror to every Tata company advisor business commentator
 The Smart
QUICK TAKE: MULTIPLE TRIGGERS FOR OBEROI REALTY “If the recession is mild, then much
of the decline has already occurred.

Investor
The stock of Oberoi Realty was up 4.9 per cent in trade If the recession is deeper,
on Tuesday. YES Securities, which has a ‘buy’ rating on then there is a risk of
the company, believes that with strong demand and another 15% decline “
consolidation, the company will have an edge backed
MUMBAI | by quality products, delivery track record, debt-to- PAUL NOLTE
WEDNESDAY, 20 JULY 2022 equity ratio of 0.26 times Portfolio manager, Kingsview
Investment Management
<

Investor mood in dire straits: BofA

I’M SO BEARISH, I’M BULLISH : Growth optimism low, mood stagflationary
FPIs PULLED OUT
$225 MN A DAY IN 2022
SUNDAR SETHURAMAN
ILLUSTRATION: BINAY SINHA
Benchmark indices up The rupee, which breached 80 against the US dollar,
intraday, on Tuesday, has faced sustained pressure on
account of selling by overseas funds. Foreign portfolio
Thiruvananthapuram, 19 July
for third straight day investors (FPIs) have sold at an average of $225 million
(~1,720 crore) each day from domestic stocks so far this

I
nvestors have scaled back their
allocation to equities as pessimism
has reached ‘dire’ levels due to
cloudy economic outlook, according to
the latest Bank of America (BofA)
monthly global fund manager survey,
which sees participation of nearly
300 money managers (with combined
assets of $800 billion).
The survey revealed that expecta-
tions of global growth and profits are
at an all-time low, and cash levels at
their highest since the 9/11 attacks.
Interest-rate hikes by central banks,
unwinding of an easy monetary regime,
disruptions in global supply chains,
and fears of recession have heightened
market volatility since the beginning of
the year. China’s zero Covid policy, a
raging war in Ukraine and its impact on
commodity prices, too, have made
things worse for the global economy
and equities. The survey showed while
inflation was seen falling, investor
mood was still stagflationary.
Meanwhile, recession expectations are
at their highest since May 2020.
Fund managers said corporates
should look to shore up balance sheets,
not increase capital expenditure or buy-
backs as safeguards against downturn.
Investors expect the US Federal
Reserve (Fed) to hike benchmark rates
by 150 basis points (bps). Most said
inflation will be lower next year, which
will lead to the Fed to push pause.
The Fed’s commitment to tame infl-
ation led to rate hikes by major central
banks across the globe. The Fed raised
its interest rates 75 bps in June — its
biggest increase since 1994. Some inves-
tors expect a 1 per cent hike at its next
meeting after consumer inflation in the
US hit a 40-year high at 9.1 per cent.
Low-interest rates and monetary
easing by central banks have led to a
record-breaking rally in equities the
world over since 2020. Shrinking bal-
ance sheets and hike in interest rates to
rein in inflation have rattled markets.
The survey said investors are taking
year. The intensity of selling is the highest-ever the
ON THE RISE Indian market has
witnessed as FPI selling Outward-bound
this year has neared $30 FPI selling tally has
billion (~2.3 trillion).
16,278.5 neared a record
Besides weighing on the $30 billion so far this year
rupee and stocks, the Net FPI flows ($ bn)
54,521.2
sharp FPI selloff has 10
0.3
deteriorated the 0
16,340.6
macroeconomic
-10
54,767.6 situation. India’s balance -29.7
of payments (BoP) deficit -20
was $16 billion during the -30
Source: Bloomberg, exchanges Compiled by BS Research Bureau March 2022 quarter, the -40
TESTING TIMES PRESS TRUST OF INDIA “Domestic indices witnessed
second-most ever after
the global financial crisis.
Jan 3,’22 Jul 15,’22
Lastest survey shows dire level of investor pessimism
Mumbai, 19 July bouts of volatility amid weakness The rupee is down over 7 per cent year-to-date, while
Most crowded trade Biggest tail risk in global markets, IT and pharma the benchmark equity gauge, the Nifty50, has
Equity indices overcame a wobbly sectors. But it was well countered declined 6 per cent. However, it could have been
nRespondents (%) nRespondents (%) start to clock gains for a third by recovery in banking, auto and worse if not for the support of domestic investors. MFs
Long US dollar 41 Inflation 33 session on the trot on Tuesday, metal stocks. have invested close to ~1.5 trillion into stocks so far this
propped up by banking, metal and “Developed markets traded neg- year. Among emerging market (EM) peers, the FPI
Long oil/commodities 23 Global recession 24 energy stocks amid a mixed trend atively due to slow hiring plans pullout from India is the worst after China and Taiwan.
Long ESG assets 12 Hawkish central banks 17 in global markets. announced by blue chip MNCs like
Large commodity exporters such as Brazil and
A recovery in the rupee also bol- Apple Inc in anticipation of global
Long Cash 6 Systemic credit events 10 Indonesia have seen positive foreign flows this year
stered sentiment, traders said. economic slowdown. However, due
Short US Treasuries 6 Russia-Ukraine conflict 7 The 30-share BSE Sensex to the Indian economy's strong fun-
despite a hawkish US Federal Reserve. SAMIE MODAK
Long China stocks 0.4 Civil unrest 4 advanced 246.47 points or 0.45 per damentals, we believe that the
cent to settle at 54,767.62 after start- immediate impact of the slowdown WORST HIT
Covid-19 resurgence 4 ing the trade on a weak note. In a in the domestic economy will be India has seen one of the highest FPI selling in the
MOST BULLISH & BEARISH ON... volatile session, the benchmark hit milder than of global peers,” said EM universe (in $ million)
Cash I Alternative investments I Commodities I Real estate I Bonds I Equities a high of 54,817.52 and a low of Vinod Nair, Head of Research at
54,232.82 during the day. Geojit Financial Services.
China* -116,788
Source: BofA Global Fund Manager Survey
On similar lines, the broader In the broader market, the BSE Taiwan -35,025
lower-than-normal risk, and the risk ring due to a rare event. Regarding NSE Nifty climbed 62.05 points or smallcap gauge jumped 0.88 per India -29,665
appetite is even below levels seen since liquidity, a net 17 per cent of investors 0.38 per cent to close at 16,340.55. cent and the midcap index climbed
the global financial crisis (GFC) of think the conditions are abysmal and Axis Bank topped the Sensex 0.68 per cent. Among BSE sectoral South Korea -15,526
2008. It further showed that the most- feel a liquidity shortage is as acute as it gainers' chart, spurting 2.35 per indices, realty jumped 2.66 per South Africa -1,413
crowded trade at the moment was to was during the GFC or Covid-19 crash. cent, followed by IndusInd Bank, cent, followed by bank, auto and Philippines -857
increase long US dollar bets, followed Investor allocation has been the most Mahindra & Mahindra, Tata Steel, basic materials. Oil and gas index
by long oil and commodities. Both defensive since May 2020. UltraTech Cement, Bajaj Finserv, was the only laggard. Vietnam -115
trades have yielded good results so far When it comes to sectoral exposure, SBI and Bharti Airtel. Ajit Mishra, VP — Research, Sri Lanka -8
this year as the greenback strength- investors are most bullish on health care However, Nestle India, HCL, Religare Broking Ltd, the recent
Japan 813
ened sharply against most global stocks and extremely pessimistic on Sun Pharma, Kotak Mahindra bounce in laggards like IT and
currencies, while oil prices have been firms producing discretionary items. Bank, Dr Reddy's, Infosys and metal has eased pressure on Malaysia 1,442
on the boil due to disruptions caused Interestingly, the BofA survey usu- Asian Paints were the biggest lag- domestic markets. Thailand 3,460
by the Russia-Ukraine stand-off. ally acts as a contra-signal, where exces- gards, dropping up to 1.37 per cent. “We maintain our positive yet
The survey said investors consider sive bearishness is considered as bull- The market breadth was posi- cautious stance and prefer sectors
Indonesia 3,949
sticky inflation as the biggest tail risk. ishness. As a result, the title of the latest tive, with 19 of the 30 Sensex con- like auto, FMCG and banking for Brazil 9,805
Tail risk is the chance of a loss occur- survey is I’m so Bearish, I’m Bullish. stituents closing higher. long opportunities,” he added. *As on March 31, 2022 Source: Bloomberg

Fertiliser stocks may wilt PNB Housing, directors shell out
on subsidy pull-back fears ~73 lakh to settle case with Sebi
HARSHITA SINGH
New Delhi, 19 July
Investors lapped up shares of
fertiliser companies earlier
this year, as expectations of a
good monsoon and the gov-
ernment’s subsidy support
drove the bullish sentiment
on the bourses.
Shares of Mangalore
Chemicals & Fertilizers,
Madras Fertilizers, Gujarat
Narmada Valley Fertilizers &
Chemicals, Coromandel
International, Agro Phos
(India), Deepak Fertilisers
and Petrochemicals
Corporation, and Gujarat
State Fertilizers & Chemicals
have surged 16-78 per cent so
far this year, compared to a 6
per cent decline of the
benchmark indices — S&P
BSE Sensex and NSE Nifty50.
After companies
reportedly hiked prices of
unregulated non-urea fertil-
isers in April due to rising
global prices, the govern-
ment had increased fertiliser
subsidy to ~60,939 crore until
September — up 45 per cent
from 2022-23 (FY23) Budget
Estimates for this group.
However, the risk of a
breach of the government’s
fiscal deficit target could play
spoilsport as it could prompt
the Centre to cut back on
subsidy support, observe
analysts.
In June, while highlight-
ing that India is currently
staring at a twin deficit prob-
lem due to cuts in fuel excise
duties, the government
batted for rationalising non-
capital expenditure, or capex
(wages, subsidies, interest)
amid risks of fiscal slippage.
“There is a lot of pressure
on the government to slash
subsidies, so there’s risk of
subsidies being converted
into bonds. Alternatively,
there can also be a delay in
payment, which can create
working capital problems for
fertiliser companies. It’s
better to avoid fertiliser
stocks,” says Chokkalingam
G, founder and chief invest-
ment officer at Equinomics
Research & Advisory.
Moreover, with the recent
softening of global commod-
ity prices — including fertil-
isers — due to recession
fears, the government said its
UNCERTAINTY AHEAD
CMP( ~)
As on July 19 /close
DeepakFertilisers & Petrochem 659.9
Mangalore Chemicals & Fertilizers 115.9
Madras Fertilizers 46.1
Gujarat Narmada Valley Fertilizer 654.9
Coromandel International 1,001.1
Agro Phos India 31.7
Gujarat State Fertilizers 141.4
S&P BSE SENSEX 54,767.6
Nifty50 16,340.6
* till June 30; compiled by BS Research Bureau
expenditure on fertiliser sub-
sidies declined in the first
quarter (Q1) of FY23.
Disbursements of urea
subsidies are regular, but the-
re are delays in the disburse-
ment of nitrogen, phospho-
rus, and potassium (non-urea)
subsidies, noted analysts at
IIFL Securities in a result pre-
view. Besides, the sharply
elevated input cost is another
headwind for the sector.
While India imports
almost entirely its phosphatic
and potassic fertilisers, either
as finished goods or raw
material, global prices of
these nutrients shot through
the roof after March as supply
from major exporters —
Russia and Belarus — fell
short. Other key inputs, such
as natural gas and ammonia,
also followed suit.
In the April-June quarter
(Q1FY23), prices of ammonia,
rock phosphate, and phos-
phoric acid were up 32 per
cent, 23 per cent and 17 per
cent, respectively, from the
fourth quarter of 2021-22.
Elevated input prices not-
withstanding, companies
may log steady revenue in
the recent quarter on the
back of government subsidy
aid, say analysts.
“Fertiliser companies may
continue to benefit from
Change YTD % Change %*
76.9 59.4
62.8 50.3
60.2 51.5
48.6 29.7
32.5 26.1
31.8 36.2
16.4 8.6
-6.0 -9.0
-5.8 -9.1
Source: Bloomberg
higher fertiliser prices, but
may see pull-back in volumes
in the recent quarter due to
weak sowing activity. Capex
done towards backward
integration into phosphoric
acid will incrementally add
to margin support, while
high prices of ammonia and
gas will continue to hurt
earnings before interest, tax,
depreciation, and amortisa-
tion per tonne,” wrote ana-
lysts at B&K Securities in a
results preview note.
All this will remain an
overhang on the sector’s for-
tunes in the short to medium
term, says Gaurang Shah,
head of investment strategist,
Geojit Financial Services.
Although Shah is positive
on the sector from a long-
term perspective due to the
government’s focus on the
agrichemical space, the
recent supply constraints due
to the Russia-Ukraine stand-
off, he says, will keep the per-
formance of companies and
their stocks under check.
“Good monsoon has
always been a positive for fer-
tiliser firms and the policy
efforts favourable as well, but
investors need to be careful of
what they buy from the space
and be stock-specific if they
want to invest from a long-
term perspective,” he adds.
SAMIE MODAK
Mumbai, 19 July
PNB Housing Finance and its board
of directors paid nearly ~73 lakh to
the Securities and Exchange Board
of India (Sebi) to settle a case around
preferential allotment of shares to
the Carlyle Group and other inves-
tors. The payment was made under
the settlement regulations, which
allow an alleged wrongdoer to settle
a matter without admitting or deny-
ing the guilt.
This puts an end to the case
involving high legal drama, which
saw the market regulator and mort-
gage lender at loggerheads on
whether articles of association (AoA)
should gain precedence over Sebi’s
regulations around share pricing.
The case saw Sebi move the apex
court after getting an unsatisfactory
verdict from the Securities Appellate
Tribunal (SAT).
In May 2021, PNB Housing
Finance announced a preferential
allotment of shares worth ~3,200
crore and ~800 crore worth of war-
rants to the Carlyle Group, Aditya
Puri’s family investment vehicle
Margin pressures in near term for Jindal Steel & Power
Captive coal availability and zero-debt
target by the end of the year are positives
DEVANGSHU DATTA
Jindal Steel & Power (JSPL)
delivered a positive surprise in
terms of higher-than expected
operating profit in the first
quarter of the 2022-23 financial
year (Q1FY23). It has also
received four capital coal
blocks, which will ensure that
it can meet demand for ther-
mal coal from internal sources,
once these are operational.
However, costs also esca-
lated in Q1, and working cap-
ital costs rose, due to higher
inventory levels. Given the
expectations of lower steel
prices going forward and the
negative impacts of export
duty, and rising inflation,
some analysts are giving
‘reduce’ recommendations
while others remain ‘positive’
on the stock.
Delhivery
up 8%, at its
highest ever
in the company’s AoA. The regulator
had directed the company to get its DEEPAK KORGAONKAR
valuation done from an independent Mumbai, 19 July
valuer as mandated under its AoA.
The mortgage lender then had Shares of Delhivery surged 7.96 per cent
moved SAT, challenging the regu- to end the day at ~640 on the BSE on
lator’s directive. On October 16, 2021, Tuesday, healthy business growth outlook
PNB Housing decided not to proceed aiding the stock. This is the highest level,
with the preferential issue. Later, the the share of the logistics services provider
Supreme Court dismissed Sebi’s has touched since listing on May 24, 2022.
appeal declaring it as “infructuous”. In the past one month, the stock has
Meanwhile, in a letter dated June zoomed 36 per cent, as compared to 6 per
25, 2021, Sebi had asked the company cent rise in the S&P BSE Sensex. At current
and its board to explain as to “why it levels,
should not be construed that the Delhivery is FAST RUN
directors have failed to discharge the 30 per cent Price in ~
Salisbury Investments, General responsibility cast upon them under higher over its 592.8
Atlantic and Alpha Investments at law, including the statutory respon- issue price of
~390 apiece. Following the sibility towards minority share- ~487 per share.
announcement of the deal, shares of holders, and consequently why The stock had 640
PNB Housing had topped ~800 from appropriate actions in terms of law hit a low of
~400 levels. be not considered for such failure.” ~474 on its
Proxy advisory firm SES had Following Sebi’s letter in June, debut day.
called the deal “unfair” to public PNB Housing and its board filed an Delhivery is the largest and the fastest
shareholders of the company and application before Sebi to settle the growing fully-integrated logistics
shareholders of PNB. matter through the consent route. Of services player in India by revenue as of
Taking note of the report by a the total penalty, ~44 lakh is towards FY22. It provides supply-chain solutions
proxy firm, Sebi had directed the legal fees. to a diverse base of 23,613 active customers
company to halt preferential allot- Shares of PNB Housing have more such as e-commerce marketplaces,
ment of shares as it was not in accor- than halved in the past one year. Its direct-to-consumer etailers and
dance with the applicable provision shares last closed at ~338. enterprises and various SMEs.
THE COMPASS
ed greater quantum of delev- Domestic steel prices have
Base=100
180 eraging. JSPL continues to corrected by over 20 per cent
target becoming net debt free in the past two months.
by end of FY23. JSPL has also Further price corrections are
Jindal Steel & Power
JSPL reported a consoli- maintained capital expendi- expected. But the costs of iron
dated operating profit of 140 ture guidance of ~22,400 crore ore and coal are also declining,
~2,999 crore primarily due to (including GST) over the next which may lead to margins
higher realisations per tonne. two to three years with annual being maintained. It’s hard to
Inventory increased by ~1,780 capex of ~6,000-7,000 crore. answer the key question: Will
crore during the quarter. The 100 Blended realisations are at steel prices correct more or
standalone profit was at ~73,842 per tonne, up 11 per less than the input cost defla-
~2,866 crore (adjusted for
SENSEX cent QoQ but costs increased tion? For what it’s worth, this
forex gains of ~450 crore), to ~57,378/tonne, which is 58 is a capital-intensive business
which was down 8.4 per cent 60 per cent higher year-on-year and interest rates are rising,
quarter-on-quarter (QoQ). July 1,‘21 July 19,’22 (YoY), and 11 per cent up QoQ. implying finance costs may
Compiled by BS Research Bureau
The standalone reported steel The profit from international rise, with elevated working
sales (incl. pig iron) were of despite the export duty. JSPL subsidiaries, mainly coal capital needs, despite the
1.74 million tonnes (down 16.3 maintains guidance of mining, was up, QoQ, to $57 deleveraging.
per cent QoQ). The share of between 8.2 to 8.4 million million from $27 million in There’s good long-term
exports decreased to 26 per tonnes of production during Q4FY22. prospects for JSPL given the
cent in Q1, vs 29 per cent in 2022-23. The company has won ongoing expansions and the
Q4FY22. The net profit The consolidated net debt four domestic coal blocks, captive coal availability. But
increased 6.2 per cent QoQ to reduced by ~1,150 cr to ~7,700 and once operational, these there will surely be near-term
~1,940 crore. crore, down from ~8,900 crore will meet the entire thermal margin pressures. The share
The management guid- in March 2021. There was a coal requirements. Timelines price has moved up from
ance was that JSPL would receipt of ~3,000 crore from are around 12-15 months, with around ~315 a month ago to
maintain an export mix at the JPL divestment. But the the first mine to become oper- ~352 after the results came in.
about 20 per cent, mainly via working capital build of ational by the end of the cur- Target prices and valuations
a value-added product mix, around ~3,000 crore prevent- rent fiscal. vary from ~360 to ~430.
>
MUMBAI | WEDNESDAY, 20 JULY 2022 ECONOMY 13

US’ return as leader in ‘PNB’s short-term bond holdings

are less prone to rising yields’
remittances to India Punjab National Bank’s bond portfolio will be less
impacted by interest rate hikes as the lender’s
fair assessment?
Although rising inflation, currency deprecia-

mirrors pre-2008 level

exposure is skewed towards shorter duration tion and rising interest rates may likely have
papers, its managing director ATUL KUMAR GOEL an impact on the profitability of corporate
tells Nikunj Ohri and Abhijit Lele in an interview. sector, the way the government is going
Edited excerpts. ahead with the reforms, India will remain the
fastest growing economy in the world. Our
North America had a 44% share before the global financial crisis With the Federal Reserve anticipating more
interest rate hikes, will RBI measures be
domestic consumption is our strength. The
public capex outlay in the Union Budget is at
SACHIN P MAMPATTA effective in stemming the impact on rupee? around ~7.5 trillion which is sharp increase
Mumbai, 19 July IN NUMBERS The rupee has been one of the best perform-
ing Asian currencies. However, it cannot
over the last year. Credit revival in capital
intensive sectors augments well for economic

T
he US accounted for nearly a
quarter of India’s total remit-
tances in 2020-21, marking a
return to the trend that existed
before 2008. The US accounted for
23.4 per cent of the total money sent
back by Indians living abroad,
SHARE IN TOTAL TOP RECEIVING STATES (share in %) remain immune to overseas outflows from the growth as it has a trickle-down effect on other
emerging markets. RBI is ensuring that there sectors as well. With rising interest rates and
REMITTANCES (in %) n2016-17 n2020-21
35.2
is no extreme volatility and there is orderly weakening rupee, External Commercial
nGulf countries movement in the rupee value. The measures Borrowings which are an important source of
nNorth America that have been announced are fundamentally financing to corporates are now losing attrac-
good to attract more inflows in debt capital, tiveness and companies will now approach
19 but may take some time to have an impact, as banks for credit requirement. The economy is
16.7

according to the Reserve Bank of the pressure on the rupee is coming from the out of pandemic induced stagnation and I

15
India’s (RBI) latest remittances sur- large sticky current account deficit, and not expect credit to infrastructure and corporate
10.2

9.7

9.3
vey for 2020-21. just capital outflows. The launch of interna- loans to revive in this financial year. Public
The RBI has conducted similar tional trade in Indian rupee will save our for- investment will continue to take the lead and

5.9
8

5.2
surveys in the past. North America eign exchange reserves and bring in more pump-prime the private investment and
44

38

accounted for as much as 44 per global trade partners. All these measures demand in this financial year.
34
24

37
27

cent of the remittances before
2008, shows reports available
between 2006-07 to 2012-13 which
had a regional rather than a coun-
try-wise breakup.
This, then, largely shows a
declining trend as gulf countries
stepped in with increased remit-
tances amid a lower share of North
American inflows. The share of gulf
countries rose from 24 per cent to
37 per cent between 2006-07 to
2012-13. North America’s share
dropped from 44 per cent to 34 per
cent in the same period.
The US replaced the United
Arab Emirates (UAE) as the top
source of remittances amid the
pandemic. “…the share of Gulf
countries has declined, reflecting
slower pace of migration and pres-
ence of Indian diaspora in informal
sectors which was hit the most dur-
ing the pandemic period…,” said
the RBI survey.
The RBI remittance report noted
that India’s historical migration pat-
tern has been towards the Gulf
Cooperation Council (GCC) region
but there has been a decline in
emigration clearances since 2015.
The clearances are issued to
unskilled or semi-skilled workers
and women seeking overseas
employment. Migration from India
to the region slowed down over the
last five years because of slower eco-
2006-07 2009-10 2012-13 Maharashtra Tamil Nadu Karnataka
Source: RBI Kerala Delhi
Source: RBI
INCREASE IN SMALLER TRANSACTIONS
n2016-17 n2020-21
Less than or 2.7
equal to $200 6.0
Between 27.0
$200 and $500 25.7
Greater than or 70.3
equal to $500 68.4
Source: RBI
nomic growth, oil prices remaining remittances, and the support to
sluggish and labour laws becoming families back home inflicted by the
stricter among other reasons. delta variant and related travel
Meanwhile economies like the restrictions in India during the
US and the United Kingdom and summer of 2021,” noted the World
Singapore have emerged as major Bank group’s Migration and
sources of remittances. “(They Development Brief, which came out
accounted)…for 36 per cent of total in May 2022.
remittances in 2020-21…This cor- This has resulted in Maharashtra
roborates with the World Bank replacing Kerala as the state with
report (2021) citing economic recov- the highest remittance share. Kerala
ery in the US as one of the impor- historically has had a high share of
tant drivers of India’s remittances remittances from the gulf region.
growth,” said the RBI note. The difference between the
“After the lull in 2020, remit- income levels may also be seen in
tance flows to India grew at 8 per- the changing size of the transac-
cent in 2021 to $89 billion. The spike tions. Smaller size transactions of
was an outcome of a strong eco- under $200 accounted rose from 2.7
nomic recovery in the United States, per cent of remittances in 2016-17
which accounts for a fifth of India’s to 6 per cent in 2020-21.
taken by central bank and the Government
might protect the steeper fall in rupee
Will the steps taken by RBI help in increasing
non-resident dollar deposits? Do you think an
increase in NR dollar deposits at PNB?
(in %) The steps announced by RBI are primarily
aimed at arresting the rupee deprecation
through higher foreign currency inflows. The
Foreign Currency Non-Resident Bank
[FCNR(B)] and Non-Resident (External)
Rupee deposits have been exempted from
the CRR and SLR requirements. The interest
ceiling on these deposits have also been dis-
pensed away temporarily. We have a network
of 230 authorised dealer (AD)
branches out of 10,098 branches
in the country. Bank offers var-
ious facilities to NRI customers.
With RBI’s dispensation, PNB
will be able to offer higher inter-
ATUL KUMAR GOEL above the RBI’s target level since
est rates to non-resident deposi-
tors and this will enable better Managing Director,
inflows of NRI deposits.
Punjab National Bank
How are rising bond yields affecting treasury
income of PNB? Have banks sought special
dispensation from RBI to provide for losses?
The yields are expected to remain volatile in
the coming months. This will largely be
impacted by the movement in crude oil prices
due to geopolitical tensions, the Federal Open
Market Committee’s decisions, MPC’s deci-
sions, trend in GDP growth, FPI flows, and
inflation numbers, among others. Though
most of the expected future rate hikes have
been priced in, there will be some upward
bias. SLR AFS portfolio of the bank is skewed
towards shorter duration papers which are rel-
atively less sensitive to rate hikes. We are tar-
geting to keep Maturity duration of SLR AFS
around 2, which indicates that the Bank’s AFS
portfolio is less sensitive to rising interest
rates. We have not sought any special dispen-
sation from RBI to provide for the MTM losses.
What are your expectations from the next
RBI policy?
RBI has carried out a very balancing act by
normalising the liquidity position in a cali-
brated manner. The repo rates
have been hiked twice towards
the start of this financial year. The
current repo rate is at 4.90 per
cent. CPI Inflation has remained
January 2022. Though CPI infla-
tion has moderated from last 2
months from peak of 7.8 per cent
in April 2022, inflation is now a
persistent problem globally and can deter
growth. Inflation will start moderating in the
second half of this financial year with new
supply capacity and as impact of other meas-
ures taken by government starts unfolding. I
expect RBI to hike rates in the next monetary
policy meeting in August. However, further
inflation data will decide the next rate hikes.
With inflation rising, there is expectation of
less demand in the economy which may delay
private capex and hit corporate loans. Is that a
What is the investment required to
strengthen IT systems, and join the AA sys-
tem? What investments have been planned on
the digital front?
PNB is the second PSB to go live on the AA
ecosystem acting as financial information
provider (FIP) and financial information user
(FIU). PNB has partnered with one of the
known Technology Service Providers (TSP) to
implement the technology stack as per the
Reserve Bank Information Technology
(ReBIT) guidelines on the bank’s premises.
The development was completed in a record-
breaking time of under 5 weeks. The solution
implemented by the bank is highly scalable
with capability to process large number of
requests and uses very high standard of data
encryption for security. We are working on
multiple business use cases and collaborating
with fintech players to leverage on the AA eco-
system and offer interesting products.
What is the PNB’s future strategy for PNB
Housing, and when will you reduce the stake?
PNB doesn’t have any plans to sell its stake in
PNBHFL presently. PNBHFL is in the
process to raise up to ~2,500 crores through
rights issue. The amount is sufficient for
growth of loan book up to FY25. With RBI’s
approval, PNB intends to infuse capital up to
~500 crore to retain the its shareholding in the
mortgage lender at 30 per cent or below but
above 26 per cent. Rights issue is expected to
be launched in Q3FY23.
More on business-standard.com

Aditya Birla Sun Life AMC Limited(Investment Manager for Aditya Birla Sun Life Mutual Fund) Registered Office: One World Center, Tower 1, 17th Floor, Jupiter Mills, Senapati Bapat
CIN:L36992MH1948PLC014083 Marg, Elphinstone Road, Mumbai - 400 013. Tel.: 4356 8000. Fax: 4356 8110/8111. CIN: L65991MH1994PLC080811

Extract of Statement of Financial Results for the quarter ended 30 June, 2022
Record Date for Distribution
(` in crores)
Particulars Quarter ended Quarter ended Quarter ended Year ended
30 June, 31 March, 30 June, 31 March, NOTICE IS HEREBY GIVEN THAT the Trustees of Aditya Birla Sun Life Mutual Fund have
2022 2022 2021 2022 approved Monday, July 25, 2022*, as the Record Date for declaration of distribution under the
Unaudited Audited Unaudited Audited Income Distribution cum Capital Withdrawal (IDCW) option in the following schemes, subject to
1. Total income from Operations 862.78 507.54 740.51 2,603.93 availability of distributable surplus on the Record Date:
2. Net Profit for the period 90.34 (16.24) 109.17 222.48
(before Tax, Exceptional and/or Extraordinary items)
3. Net Profit for the period before tax 90.96 (16.24) 109.17 222.48 Quantum of Distribution NAV as on
(after Exceptional and/or Extraordinary items) Name of the Scheme Plans/Option per unit# on face value July 18,
4. Net Profit for the period after tax 67.47 (14.13) 82.42 164.27 of Rs.10/- per unit 2022 (Rs.)
(after Exceptional and/or Extraordinary items)
5. Total Comprehensive Income for the period 66.25 (13.66) 78.99 163.62 Aditya Birla Sun Life Balanced Regular Plan – IDCW 0.110 22.01
[Comprising Profit for the period (after tax) and Other Advantage Fund
Comprehensive Income (after tax)] (An open ended Dynamic Asset
6. Equity Share Capital 19.45 19.45 19.45 19.45 Direct Plan – IDCW 0.121 24.17
Allocation fund)
7. Reserves (excluding Revaluation Reserve as shown in the Balance 1,677.21
Sheet of previous financial year) Aditya Birla Sun Life Pure Value
8. Basic and diluted earnings per share (of ` 1 /- each) 3.47 (0.73) 4.24 8.45 Fund Regular Plan – IDCW 1.712 28.5360
Notes: (An open ended equity scheme
a. The above is an extract of the detailed format of the Unaudited Financial Results for the quarter ended 30 June, 2022 filed with following a value investment
the Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full Direct Plan – IDCW 3.044 50.7406
strategy)
format of the Unaudited Financial Results for the quarter ended 30 June, 2022 is available on the Stock Exchanges websites viz.
www.nseindia.com and www.bseindia.com and on the Company’s website www.rallis.com. Aditya Birla Sun Life Focused
b. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 19 July, Regular Plan – IDCW 1.144 19.0665
Equity Fund
2022. The statutory auditors have expressed an unqualified review opinion. (An open ended Large cap Equity
c. Financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles Scheme investing in maximum 30
of Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time. Direct Plan – IDCW 2.618 43.6299
stocks)
d. The Company’s business is seasonal in nature and the performance can be impacted by weather conditions and cropping pattern.
e. The Company has one reportable business segment viz. ”Agri-Inputs”. Aditya Birla Sun Life Digital India
f. Exceptional item as disclosed in the column (Quarter ended 30 June, 2022) comprises profit on sale of land (net of costs). Fund Regular Plan – IDCW 2.140 35.67
g. The figures for quarter ended 31 March, 2022 are the balancing figures between audited figures in respect of the full financial year (An open ended equity scheme
and the published year to date figures upto nine months ended 31 December, 2021. Also the figures upto the end of the third quarter investing in the Technology,
had only been reviewed and not subjected to audit. Telecom, Media, Entertainment
h. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company and other related ancillary Direct Plan – IDCW 2.815 46.91
towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social
Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the
sectors)
Ministry. The Company will assess the impact and its valuation once the subject rules are notified and will give appropriate impact
in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact The NAV of the schemes, pursuant to pay out of distribution would fall to the extent of
are published.
payout and statutory levy (if applicable).
For and on behalf of
Rallis India Limited
#As reduced by the amount of applicable statutory levy. *or the immediately following Business Day
Sd/- if that day is a non-business day.
Place: Mumbai Sanjiv Lal
Date: 19 July, 2022 Managing Director & CEO
All unitholders whose names appear in the Register of Unitholders / Beneficial owners under the
Registered Office: 23rd Floor, VIOS Tower, New Cuffe Parade, Off Eastern Freeway, Wadala, Mumbai - 400 037
Tel: +91 22 6232 7400 Email: investor_relations@rallis.com
IDCW option of the said schemes as at the close of business hours on the Record Date shall be
Website: www.rallis.com eligible to receive the distribution so declared.

For Aditya Birla Sun Lif e AMC Limited

(Investment Manager for Aditya Birla Sun Life Mutual Fund)
Sd/- Date : July 19, 2022
Authorised Signatory Place : Mumbai
Mutual Fund investments are subject to market risks, read all scheme
related documents carefully.
14 STOCKS
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1

> OFSTOCK
IN THE > GE Power India > AIA Engineering > MRF

NEWS Top gainer

among A-group
Hits new all-time
high at ~2,457
Snaps 9-day
winning THE DAY
companies on BSE streak Maharashtra Seamless
~124.6 PREVIOUS CLOSE ~2,362.5 PREVIOUS CLOSE ~80,567.3 PREVIOUS CLOSE Hits new all-time high
~149.15 CLOSE ~2,429.4 CLOSE ~79,932.5 CLOSE at ~722; Up 30 per cent
p 19.7% UP p 2.8% UP q 0.8% DOWN this fiscal

NIFTY 50
Company Close (~) % Wt PE Company Close (~) % Wt PE
ADVANCES/DECLINE F&O SNAPSHOT DAY’S TOP GAINERS DAY’S TOP LOSERS
19 Jul ’22 Chg (%) Con Std 19 Jul ’22 Chg (%) Con Std Futures Cash Premium Futures Cash Discount Company Day’s high Close % chg* 3mth high 52 wk high Company Day’s low Close % chg* 3mth low 52 wk low
Adani Ports 749.0 1.3 0.7 33.3 397.5 ITC 294.6 -0.2 4.9 23.9 24.2 price price (%) price price (%)
Apollo Hosp 4020.2 1.9 0.6 54.8 86.9 JSW Steel 584.9 -0.2 1.1 6.8 8.5 RBL Bank 92.3 91.5 6.5 132.5 221.2 GAIL 137.4 140.2 -2.7 129.1 125.2
MOST BULLISH MOST BEARISH
Asian Paints 3019.1 0.0 1.9 95.6 92.4 Kotak Mah Bank 1835.0 -0.6 3.7 30.1 42.5 Escorts Kub 1791.9 1756.3 5.4 1791.9 1930.0 TV18 Broadcast 38.3 38.5 -2.4 34.9 33.1
Axis Bank 700.6 2.4 2.6 15.2 16.5 Vodafone Idea 9.0 9.0 0.6 Tech Mahindra 978.6 1007.7 -2.9 Oberoi Relty 905.0 898.0 4.9 987.1 1051.9 Indus Towers 217.6 221.4 -2.2 181.2 181.2
L&T 1729.8 0.1 3.3 28.0 33.1
Bajaj Auto 4002.0 0.5 0.7 18.8 23.1 Rain Inds 153.0 152.3 0.5 NIIT Techno 3353.6 3411.6 -1.7 Raymond 1029.5 1024.6 4.5 1280.0 1280.0 Max Fin Sre 828.0 831.3 -2.2 697.1 697.1
Mah & Mah 1186.3 2.0 1.6 22.4 29.9
NBCC 31.8 31.6 0.5 SAIL 72.0 73.2 -1.6 Polycab India 2259.0 2249.4 4.4 2820.1 2820.1 NBCC 30.9 31.7 -2.0 26.7 26.7
Bajaj Fin 6066.0 0.1 2.2 52.3 57.8 Maruti Suzuki 8715.9 0.1 1.6 67.9 69.9 City Union Bk 158.8 158.0 0.5 M & M Fin 204.6 207.4 -1.3 Bank of Baroda 113.0 112.7 4.3 117.3 122.7 Muthoot Finance 1029.1 1036.9 -1.9 961.1 961.1
Bajaj Finsrv 12444.8 1.6 1.1 43.5 466.8 Nestle India 18377.7 -1.3 0.9 - 82.9 Bosch 16485.2 16407.7 0.5 L&T 1709.4 1729.8 -1.2 Canara Bank 223.6 223.2 4.0 238.5 272.8 Maha Gas 780.8 785.1 -1.9 666.4 666.4
Bharti Airtel 672.9 1.5 2.2 88.0 - NTPC 150.8 0.6 1.0 8.8 9.1
BPCL 316.6 0.2 0.4 5.9 7.8 Federal Bank 107.5 107.0 3.9 107.5 107.7 ONGC 124.6 127.5 -1.9 119.8 108.5
ONGC 127.9 -1.5 0.9 3.5 4.0
Britannia 3787.5 0.3 0.6 59.8 56.9 BSE NSE Info Edge 4145.0 4128.9 3.6 4860.0 7463.0 GMR Infra 34.5 34.7 -1.7 31.7 27.3
Cipla 960.7 -0.7 0.7 30.8 26.2
Power Grid 210.0 -0.1 1.0 8.7 8.6 Index Stock Index Stock PUT-CALL RATIO Poonawalla Finc 277.5 275.4 3.5 335.0 343.8 Firstsource 104.4 105.0 -1.7 93.0 93.0
Reliance Ind 2437.1 0.6 11.4 27.2 42.2 Birlasoft 328.6 327.6 3.1 440.6 585.9 Tata Comm 989.5 994.9 -1.7 856.0 856.0
Coal India 198.3 1.4 0.6 7.0 10.9 FUTURE (Open Interest in Mn) Put Call PC Ratio
SBI 498.0 1.6 2.6 12.6 14.0 Rain Inds 154.3 152.2 2.9 185.0 272.9 InterGlobe Avia 1770.0 1777.9 -1.5 1513.3 1513.3
Divis Lab 3753.3 0.4 0.6 33.7 33.8 Contracts - - 388328 929799
SBI Life Ins 1170.0 -0.6 0.7 - 77.7 Market 1503.0 2313.1 0.6 HAL 1829.0 1823.5 2.8 1970.0 1970.0 Syngene Intl 609.4 614.6 -1.5 511.5 508.1
Dr Reddys 4447.9 -0.4 0.7 33.9 45.6 Open Int.(000) - - 16918 4985770
Shree Cement 20068.2 0.1 0.4 - 30.5 Indiab Real 68.5 67.9 2.6 101.6 195.9 HDFC Std Life 535.0 535.9 -1.4 521.3 497.3
Eicher Motor 3077.7 1.4 0.6 50.2 53.0 Shares(In Mn) - - 15.1 1441.9 Top 5 PC Ratio Bottom 5 PC Ratio
Sun Pharma 875.3 -0.8 1.3 64.2 458.9 Indiabulls Hous 99.2 98.3 2.6 164.1 297.7 Nestle India 18233.4 18382.0 -1.3 16000.0 16000.0
Grasim Ind 1442.2 1.0 0.7 12.6 31.1 Value(~ crore) - - 32926 60175
Tata Consumer P 787.3 -0.9 0.6 77.5 81.9 ACC 1.6 Honeywell A 0.0
HCL Techno 889.7 -1.2 1.3 17.8 22.2 OPTIONS * Ranked on the basis of percentage gain/loss on previous close
Tata Motors 449.1 -0.4 1.1 - - Titan Company 1.3 Ramco Cements 0.1
HDFC 2217.7 0.6 5.5 17.8 29.3 Contracts - - 120803293 3597740
Tata Steel 919.5 1.7 1.0 2.8 3.6 Asian Paints 1.2 Atul 0.2
HDFC Bank 1348.1 0.0 8.0 19.7 19.5
HDFC Std Life 535.9 -1.3 0.7 85.3 93.8 TCS 3074.3 0.4 4.2 29.0 29.2
Open Int.(000)
Shares(In Mn)
-
-
-
-
329169
4283.6
3486914
4783.2
Chola Inv 1.2 MCX 0.2 MOST TRADED TOP M-CAP TRENDS
Tech Mahindra 1007.7 0.0 0.9 17.6 19.9 Bajaj Finsrv 1.1 JK Cement 0.2
Hero MotoCorp 2801.2 -0.6 0.5 24.2 22.6 Value(~ crore) - - 10237941 242729 Value Volume Rank Company Mcap (~ cr) Company % change Company % change
Hindalco 368.0 0.2 0.7 6.0 15.0 Titan Company 2241.2 0.2 1.3 91.6 91.3 BSE+NSE BSE+NSE
UltraTech 6085.9 1.7 1.0 23.9 24.9 1 Reliance Ind 1651506.0 BS200 DOWN 7 DAYS
HUL 2568.0 0.6 3.1 68.0 68.4 (~ crore) (Mn shrs)
ICICI Bank 780.7 1.1 7.4 21.6 23.3 UPL 684.4 -0.1 0.5 14.4 44.5 ACTIVE CALLS ACTIVE PUTS Reliance Ind 1929.6 7.9
2
3
TCS
HDFC Bank
1125209.8
748632.2 UP 3 DAYS Scandent Imagin -29.8
IndusInd Bank 868.1 2.0 0.8 - 14.6 Wipro 405.7 0.2 0.8 18.2 18.3 Expiry Strike Traded Open % Chg Expiry Strike Traded Open % Chg HDFC Bank 1092.2 8.1 4 Infosys 624789.5 Poonawalla Finc 14.5 Rose Merc -29.6
Infosys 1484.2 -0.4 7.4 28.2 29.4 Nifty 50 16340.6 á0.4 100.0 22.1 24.7 MARKET OVERVIEW (In Million) Date Price Qty Interest (OI) (In Million) Date Price Qty Interest (OI)
ICICI Bank 1070.3 13.8 5 HUL 602907.4
L & T Infotech 11.3 Harish Text -23.2
INDEX PE SHRS TRDS 1 YR Index Index Tata Steel 835.1 9.1 6 ICICI Bank 543063.1
DCM -16.3
S&P BSE SENSEX AGGREGATES C/S MN ‘000 ADV DEC RETURN Nifty
Nifty
21/07/22
21/07/22
16300
16400
198.5
142.0
4.3
5.3
4.6
18.7
Nifty
Nifty
21/07/22
21/07/22
16200 142.9
16300 136.4
7.7 32.2
5.0 151.1
Axis Bank 754.9 10.8
7á
8â
SBI
LIC India
444445.1
435634.4
Chola Inv 11.0
UP 3 DAYS
SENSEX 24.3/27.0 6.9 193 19 11 4.2 Bajaj Fin 614.1 1.0 Federal Bank 10.0
Asian Paints 3018.1 0.0 2.2 95.5 92.3 Mah & Mah 1186.2 2.0 1.9 22.4 29.9 Nifty 21/07/22 16500 134.9 5.7 8.4 Nifty 21/07/22 16000 87.3 6.2 -3.6 9 HDFC 402272.6
NIFTY 50 22.1/24.7 222.6 3726 32 18 3.7 Mindtree 9.2 Leading Les Fin 58.0
Axis Bank 700.6 2.4 3.1 15.2 16.5 Maruti Suzuki 8714.6 0.1 1.8 67.9 69.9 Nifty Bank 21/07/22 35500 114.1 1.5 -31.5 Nifty Bank 21/07/22 35500 85.4 2.5 362.3 TCS 603.3 2.0 10 Bharti Airtel 374375.5
C = CONSOLIDATED; S = STANDALONE
Bajaj Fin 6062.5 0.1 2.5 52.2 57.8 Nestle India 18382.0 -1.3 1.0 - 82.9 Nifty 21/07/22 16600 101.8 7.8 36.0 Nifty 21/07/22 16100 80.9 4.2 -18.2 SBI 603.1 12.2 11 Bajaj Fin 367054.1 Escorts Kub 8.8 Orient Bev 36.7
Bajaj Finsrv 12445.3 1.6 1.2 43.5 466.9 NTPC 150.7 0.6 1.1 8.8 9.1 CASH DERIVATIVES Stock Stock HDFC 587.7 2.7 12 Kotak Mah Bank 364060.2 Super House 32.0
TURNOVER BSE NSE BSE NSE
Indiab Real 8.7
Bharti Airtel 673.0 1.4 2.6 88.0 - Power Grid 210.0 -0.1 1.1 8.7 8.6 Federal Bank 28/07/22 110 110.8 7.4 85.5 Federal Bank 28/07/22 100 41.1 6.8 61.4 Tata Motors 556.5 12.4 13 ITC 363822.4
Dr Reddys 4448.7 -0.4 0.9 33.9 45.6 DOWN Bhartiya Int 31.8
Reliance Ind 2441.2 0.8 13.2 27.2 42.3 VALUE(IN ~ CRORE) 2821 44549 -10573771 Federal Bank 28/07/22 105 89.4 6.0 -16.5 Bank of Baroda 28/07/22 105 19.3 5.9 75.2 Bharti Airtel 552.5 8.2 14 Adani Trans 337831.7
HCL Techno 890.1 -1.1 1.5 17.8 22.2 Vodafone Idea 28/07/22 9 53.7 63.1 -9.2 Bank of Baroda 28/07/22 110 16.5 5.0 150.9 15 Adani Green En 333921.4 LIC India -3.3 OM Infra Ltd 29.1
SBI 498.0 1.6 3.0 12.6 14.0 SHARES(IN MN) 468.2 1761.8 - 10523.9 Infosys 543.9 3.7
HDFC 2217.1 0.6 6.3 17.8 29.3 TRADES(000) 2357 15656 - 45787 Coal India 28/07/22 200 42.4 20.3 4.8 Federal Bank 28/07/22 95 15.2 4.7 -12.9 16 Adani Total Gas 311600.8 Omaxe 28.8
Sun Pharma 874.9 -0.9 1.5 64.1 458.7 Kotak Mah Bank 541.1 2.9 Dr Reddys -2.9
HDFC Bank 1347.6 0.0 9.3 19.7 19.5 PNB 28/07/22 32 40.1 15.7 10.6 ONGC 28/07/22 125 14.1 4.1 -2.5 17 Asian Paints 289491.4
Tata Steel 919.3 1.7 1.2 2.8 3.6 Bajaj Finsrv 535.2 0.4 Others Manorama Inds 27.2
HUL 2566.0 0.5 3.6 67.9 68.4 MARKET-CAP (~ CR) TRADED TOTAL 18 Adani Enter 279362.7
ICICI Bank 780.7 1.1 8.5 21.6 23.3 TCS 3075.1 0.5 4.9 29.0 29.2 DOWN 3 DAYS
Vedanta 519.0 21.8 19 Maruti Suzuki 263250.6 UP 7 DAYS
Tech Mahindra 1007.6 -0.1 1.0 17.6 19.9 BSE 25,678,049 25,830,507
IndusInd Bank 868.5 2.1 0.9 - 14.6
Infosys 1484.9 -0.3 8.5 28.3 29.4 Titan Company 2239.7 0.1 1.5 91.5 91.2 NSE 25,411,479 25,477,321 SPURT IN VOLUMES Polycab India
L & T Infotech
504.8
496.0
2.3
1.2
20
21á
Avenue Supermar
L&T
254576.8
242839.6
PC Jeweller 68.0 Alan Scott Inds -19.0
UltraTech 6080.1 1.6 1.1 23.9 24.8 DERIVATIVES 18,202,043 18,202,043 National Oxy 54.2 AF Enterprices -14.2
ITC 294.5 -0.2 5.7 23.9 24.2 Company Days 2-week Avg Change Close *Price 22â HCL Techno 241528.4
Escorts Kub 488.0 2.8
Kotak Mah Bank 1833.7 -0.7 4.2 30.1 42.5 Wipro 405.6 0.2 0.9 18.2 18.3 Volume Volume % price %chg 23 Wipro 222364.1 Panth Infi 40.7 KACL -14.2
L&T 1728.2 0.1 3.8 28.0 33.1 BSE SENSEX 54767.6 á0.5 100.0 24.3 27.0 TRADING ACTIVITY Birla Nifty ETF 4131883.0 24688.8 16635.8 18.3 0.1
Mah & Mah
Bank of Baroda
487.4
486.8
4.1
43.9
24á Axis Bank 215170.4 Modis Navnirma 40.6 Amalgamated Ele -14.2
C = Consolidated; S = Standalone (~ crore) FIIs MF 25â Sun Pharma 209914.8
GE Power India 4260867.0 97485.8 4270.8 149.1 19.7 ONGC 462.4 35.6 Shrigang Ind 40.5 Duro Pack -14.1
Equity Debt Equity Debt 26 Titan Company 198836.1
Net Net Net Net Omaxe 6127878.0 162951.1 3660.6 109.8 17.6 HCL Techno 456.3 5.1 27 Bajaj Finsrv 198054.5 Deep Diam 40.2 Bhatia Communic -14.1
WORLD INDICES On 18 Jul 220 561 - - Sarveshwar Food 1020800.0 28644.4 3463.7 50.0 4.9 Adani Green En 452.0 2.2 28 Nestle India 177239.2 High Street 40.1 BFL AFL -14.1
On 15 Jul -1635 74 - - Aro Granite 709258.0 28294.3 2406.7 49.9 13.4 Maruti Suzuki 449.6 0.5 29 UltraTech 175514.2
Indices Close % Chg* Indices Close % Chg*
On 14 Jul 363 -890 - - Megastar Foods 109849.0 4579.5 2298.7 178.8 5.0 30 ONGC 160335.7 (T+2) cycleStocks which rose/fell continuously
Info Edge 448.0 1.1
Americas (Jul 18,22) Asia/Pacific (Jul 19,22) On 13 Jul -2721 -551 - - Jeena Sikho LC 117000.0 4888.9 2293.2 152.4 8.1
S&P/ TSX Composite 18595.6 1.1 Jakarta Composite 6736.1 1.2 On 12 Jul -1457 79 - - Advanced Enzyme 876863.0 49654.3 1665.9 294.6 7.0
Jul till date -8586 -59 - - Repco Home 2652329.0 151567.5 1649.9 147.9 10.8
Dow Jones
Nasdaq Composite
31072.6
11360.1
-0.7
-0.8
Shanghai Se Comp
Kuala Lumpur Comp
3279.4
1428.8
0.0
-0.1 2022 till date -226450 -16529 140725 -12246 G E Shipping 3915773.0 254677.4 1437.5 441.5 6.9
BOARD MEETINGS INTRA-DAY
Europe/Africa (Jul 18,22) Straits Times 3117.8 -0.1 Quarterly Chandra Prab Ramkrshn Frg Coforge Group T
IBEX 35 8063.3 1.3 Taiwan Taiex 14694.1 -0.2 FIIS IN DERIVATIVES 52 WEEK NEW HIGHS/LOWS Results DEL Group B HDFC AMC Andhra Cem
JULY 20 India Stel W Happiest JSW Steel Dharani Sug
FTSE 100 7238.9 0.2 Kospi 2371.0 -0.2 Company Price Company Price Company Price Company Price
(~crore) Index Stock Index Index Stock BS 200 Kiran Syntex Minds Reliance Ind Group X
DAX 12980.4 0.2 Stock Exchange of Thai 1533.4 -0.7 NET Net Fut OI Opt OI OI Havells I Sunil Health Meghmani Fi- UltraTech Duncan Engg
HIGH *Elecon Engin . . . . . . . 335.0 *Osiajee Texfab . . . . . . . 68.0 LOW
CAC 40 6096.6 0.1 Volatility (Jul 18,22) BS 200 *Super House . . . . . . . . 254.8 *Gala Global Pro . . . . . . 65.7 BS 200 IndusInd Bank Taaza Intern nech Group A Orosil Smiths I
On 18 Jul 2736 202 0.1 1.4 2.4
Asia/Pacific (Jul 19,22) CBOE Dow Jones 22.0 4.2 On 15 Jul 3408 61 0.2 1.2 2.4 *Eicher Motor . . . . . . 3088.0 *Rajnish Welines . . . . . 250.5 *Shrigang Ind . . . . . . . . 65.1 NONE Oracle Fin Group XT Orient Bell Finolex Ind Pharmaids
Nikkei 225 26961.7 0.7 CBOE S&P 500 24.6 -2.8 On 14 Jul 6435 -549 0.2 1.0 2.4 *Siemens . . . . . . . . . . 2749.0 *BLS Intl Ser . . . . . . . . . 245.7 *Galactico Corpo . . . . . . 63.6 Others Rel Ind Infra Genomic Valley Pioneer Dist Greenpanel Inds Shetron
On 13 Jul -3352 -26 0.2 1.4 2.4 *ABB India . . . . . . . . . 2638.0 *Atam Valves . . . . . . . . 242.5 Acemen . . . . . . . . . . . 57.9 Hind Urban . . . . . . . . . 2350.0 Syngene Intl RLF Quick Heal HFCL Ushdev Intl
Hang Seng 20661.1 -0.9 * Change over previous close
On 12 Jul -4371 -952 0.2 1.4 2.4 *Adani Enter . . . . . . . . 2459.0 *Shuubham Poly . . . . . 222.5 *VCU Data . . . . . . . . . . . 56.4 Assam Entrade . . . . . . 365.0 Tata Comm Zenlabs Ethica Rajratan Glb Huhtamaki India Zenotech Lab
*TVS Motor . . . . . . . . . 888.8 *Shish Inds . . . . . . . . . . 205.1 *Sreechem Res . . . . . . . 55.9 Race Eco Ch . . . . . . . . 150.0 Wipro JULY 21 Rane Madras Mahindra CIE Group XT
MAJOR INDICES Jul till date
2022 till date
14286
258437
878
27440
-
-
-
-
-
- *Varun Bever . . . . . . . . 884.0 *Arex Inds . . . . . . . . . . . 198.9 *Panth Infi . . . . . . . . . 53.6 Softsol Ind . . . . . . . . . . 115.7 Group A BS 200 Tokyo Plast Supreme Pet- ABVL
M & M Fin . . . . . . . . . . . 209.2 *Shukra Pharmace . . . 182.4 *PC Jeweller . . . . . . . . . . 52.2 *ICICI P Silver . . . . . . . . 56.4 Agro Tech Fd Can Fin Home Group IF roch Kesar Term
Previous Close Open High Low Close Change % chng OI in number of contracts(million)
Others *GTV Engg . . . . . . . . . . 175.0 *AKI India . . . . . . . . . . . . 49.5 Rithwik Facilit . . . . . . . . 50.0 CEAT IndiaMART Int Embassy Office Tinplate Co Yash Trading
S&P BSE Sensex 54,521.2 54,251.9 54,817.5 54,232.8 54,767.6 246.5 0.5 *Timken India . . . . . . 2828.8 *Royal Orchid . . . . . . . . 157.5 *High Street . . . . . . . . . . 49.5 *Bhatia Col . . . . . . . . . 40.0 Century Ply Persistent S Group T Vardhmn Text Group Z
*AIA Engg . . . . . . . . . . 2457.0 *Ganesh Benzo . . . . . . 142.6 *Lynx Mach . . . . . . . . . . 44.5 ACML . . . . . . . . . . . . . . . . 30.0 Gland Pharma PVR DRC Systems Group B Easy Fincorp
S&P BSE Sensex 50 17,091.1 17,015.5 17,176.2 17,007.2 17,158.3 67.1 0.4 S&P BSE SECTORAL INDICES *Tube Inv of Ind . . . . . 2317.9 *Sanrhea Tech . . . . . . . 141.5 *Polymac Thermo . . . . . 43.9 *Shristi Inf . . . . . . . . . . . 29.4 Hath Cable RBL Bank Group X 20 Microns JULY 23
*Meghmani Finech . . 1626.6 *Maruti Interior . . . . . . 135.0 *Sonal Adhes . . . . . . . . . 41.9 *Adeshwar . . . . . . . . . . . 25.0 Newgen Soft Tec SRF Frankin Inds Arihant Cap BS 200 Kewal Kiran Group XT Century Tex Supreme Ind Divyashakti
S&P BSE-100 16,653.3 16,581.6 16,736.3 16,574.0 16,718.4 65.0 0.4 Prev cls Close % Chng
*Safari Ind . . . . . . . . . 1195.0 *Titagrh Wgns . . . . . . . 131.1 *Khandwala S . . . . . . . . 41.4 *Suumaya Corp . . . . . . . 21.1 Sasken Comm Group A Osiajee Texfab Ashapuri Gold ICICI Bank Nahar Cap Raunaq EPC Intl Craftsman Swaraj Engin Garnet Intl
S&P BSE-200 7,109.2 7,082.1 7,149.1 7,077.8 7,141.3 32.1 0.5 Auto 28,504.2 28,756.3 0.9 *Shanti Edu Init . . . . . 1107.8 *ICICI ETF AUto . . . . . . 126.5 *Respons Info . . . . . . . . 41.3 *Shantai Inds . . . . . . . . 19.2 Group B CRISIL Prismx Glob Bharat Gears Kotak Mah Bank Nahar Poly Group Z Auto Tanla Soluts Johnson Pharma
Bankex 40,907.1 41,297.4 1.0 *Insectcides . . . . . . . . . 985.0 *Sera Inves . . . . . . . . 122.8 *Deep Diam . . . . . . . . 36.5 *Palm Jewels . . . . . . . . . 11.4 CyberTech CSB Bank Samkrg Pist Gokaldas Exp Navin Fluo Nahar Spg Suraj Produc GSK Pharma Tejas Networks National Oxy
S&P BSE-500 22,277.6 22,201.2 22,407.5 22,187.8 22,384.0 106.4 0.5
Cons. Durables 38,815.6 38,975.9 0.4 *Rajratan Glb . . . . . . . . 872.0 *Captain Pipes . . . . . . . 120.0 *Ashiana Isp . . . . . . . . . . 36.3 Helpage Fi . . . . . . . . . . . 8.1 JSW Ispat Speci Cyient Group XT Imagicaworld En YES Bank Sportking India JULY 24 IIFL Wealt Group B Relic Techno
S&P BSE IPO 9,091.5 9,075.5 9,150.0 9,071.7 9,135.6 44.2 0.5 Cap. Goods 28,175.5 28,302.0 0.4 *Orient Bell . . . . . . . . . 815.1 *IndiaNivesh . . . . . . . . . 99.1 Mansi Financ . . . . . . . . . 36.0 *Starlit Power . . . . . . . . . 7.7 Lloyd Steel Elecon Engin Guj Cotex Ind Bank Hsg Group A Steel Exchng BS 200 Jindal Stan Aurionpro Sl Saven Techno
FMCG 15,085.3 15,102.4 0.1 *Gensol Engg . . . . . . . . 752.3 *Orient Bev . . . . . . . . . . 98.0 *Karna Fin . . . . . . . . . . . 33.2 *Aryavan Enterpr . . . . . . . 7.5 Menon Bear GSFC Swastik Safe Indbank Merc Karnataka Bk Surana Tele Infosys KPIT Techno Jindal Drill Shree Gan Bio
S&P Dollex-30 5,598.2 - - - 5,626.1 28.0 0.5 Rane Eng Val Himadri Sp Chem Vivanza Bios JTL Infra Group B
Healthcare 22,630.1 22,650.9 0.1 *Maha Seamles . . . . . . 722.0 *IFL Enterprises . . . . . . . 96.9 *ABC Gas Int . . . . . . . . . . 32.8 Fraser & Co . . . . . . . . . . . . 6.7 Group T JULY 25 Lakshmi Ma- Kamdhenu Swastik Inv
Nifty 50 16,278.5 16,187.1 16,359.5 16,187.1 16,340.6 62.0 0.4 Infra 268.8 269.4 0.2 *VRL Logistics . . . . . . . 698.1 *Kamadgiri . . . . . . . . . . . 84.9 *Parshrti Inv . . . . . . . . . . 29.4 *Regency Invest . . . . . . . 6.2 Sagar Cem Hind Zinc Group Z Meghmani Or- Arih Superst Shish Inds Axis Bank chine RPEL Group XT
IT 27,955.1 27,986.2 0.1 *PSP Projects . . . . . . . 672.0 *Ambar Proteins . . . . . . 81.7 *Bloom Indust . . . . . . . . 25.6 *KBC Global . . . . . . . . . . . 3.0 Group T ICICI Securitie Trade Wings gani Bhagynagar Uttam Galva Canara Bank Maha Scoot Shanthi Gear Sadhna Broadcas
Nifty next50 39,466.8 39,347.7 39,733.6 39,308.2 39,657.7 190.9 0.5 Metal 16,357.3 16,489.8 0.8 Integra Essenti IDBI Bank JULY 22 Seshasa Pprs Prop
*TD Power . . . . . . . . . . 557.2 *Supreme Ho . . . . . . . . . 81.2 *Davangere sugar . . . . . 23.3 Sea coast . . . . . . . . . . . . 2.4 Group X Tata Steel Maha Seamles Tatva Chintan JULY 26
Nifty 500 13,984.4 13,922.6 14,067.8 13,922.4 14,051.7 67.3 0.5 Oil & Gas 18,295.0 18,235.2 -0.3 *Eurekaforbe . . . . . . . 462.0 *Kranti Inds . . . . . . . . . . 79.0 *Dhruva Capital . . . . . . . 19.8 *Shree Gan Bio . . . . . . . . 2.2 Mehai Tech IIFL Wealt BS 200 Sigachi Inds Compucom Sft Evexia Tech Mahindra Orient Ele Vimta Labs BS 200
Power 4,445.4 4,468.8 0.5 G E Shipping . . . . . . . . 459.2 *Alpine Hsg . . . . . . . . . . 74.8 *Sadhna Broadcas . . . . 14.7 Abcrspdg . . . . . . . . . . . . 1.6 MIC Electr JSW Energy Atul Ugro Cap DCM Nouvell ISL Consul Group A Sharda Crop VSSL Asian Paints
India VIX 17.2 17.2 17.7 16.4 17.2 0.0 0.2 PSU 8,249.5 8,310.6 0.7 *KLK Elect . . . . . . . . . . . 71.8 *Tirupati Tyres . . . . . . . . 14.4 Group X Kajaria Cer Bandhan Bank Vikas Ecotech D-Link India Jasch Ind Apollo Tricoat Sonata Soft Group X Bajaj Auto
*Steelcast . . . . . . . . . . 431.0 07Gpg . . . . . . . . . . . . . . 1.1
Nifty CPSE 2,436.8 2,435.5 2,459.7 2,424.1 2,437.9 1.1 0.0 Realty 3,386.0 3,475.9 2.7 Benares Htl PCBL CGCEL Wendt eMudhra Ontic Finserv Astec Life Sterlite Tch Archit Organosy L&T
m m w w

> BS 200
WHAT THIS STOCK PAGE CONTAINS AND WHY The third sub-set of The table also contains the (F&O) section a wide set of an option may be exercised. becomes valueless while compared with the previous XD after the traded quotes M
BSE NSE BSE NSE
information is the stock’s company’s price-earnings data has been provided. An option is “in-the-money” futures contracts are close, the close price is indicate that the scrip has
market capitalisation. The (P/E) multiple. The P/E Open Interest: OI is the if the market price exceeds compulsorily settled on underlined. A significant gone ex-dividend after that l ~100 q ~3 Aarti Inds< ABB IndiaH
BS 200 stocks account for over paid-up value . Four
market capitalisation is multiple is arrived at by number of contracts open at the SP (in case of a call option) expiry. On NSE, it is the last change means a 3 per cent date; XB denotes ex-bonus, PCLose (735.4) (735.6) (2588.0) (2586.6)
85 per cent of the volume of categories of information are m ~50 H ~2 Open 735.0 733.0 2567.6 2570.0
shares, value and trades on provided: First, the basic shown in ~crore and is arrived dividing the day’s closing end of day in the futures and and the market price is below Thursday of every month. rise or fall in scrips whose XR ex-rights; XO ex-indicator
High 741.5 742.0 2638.0 2638.7
the Bombay Stock Exchange information on the day’s at by multiplying the closing price by its reported earning options segment. OI thus SP (in case of a put). Put/call ratio: The ratio of market values are over 10 for other corporate actions n ~20 « ~1
Low 728.7 728.0 2559.5 2556.0
and National Stock Exchange. trading. Information is also prices of shares with equity per share (EPS) for trailing 12 indicates traders’ Otherwise it is “out-of- open interest in put options & times paid-up value or 15 per like AGM/EGM/ preference u ~6 Face value Close 735.7 735.6 2591.1 2590.9
For BS 200 stocks, the given on the number of capital. It changes either months. EPS is calculated on expectations. High OI is money” call options. cent for the rest of the shares. shares/mergers and others . M of scrips is Shares 11249 411K 10046 211K
because more shares have the basis of consolidated typical when traders see a Expiry date: The date on ABBREVIATIONS: When a The letters H or L appended denotes volume of shares in < ~5 ~10 in all PE 20.7 20.7 73.1 73.1
company name is followed by shares traded, and also the 52 Wk H/L 1168/669 1168/669 2638/1619 2639/1618
been issued (or extinguished) earnings wherever available. continuing trend. which a derivative expires . significant change occurs in to prices indicate a new high million, L in lakhs & K in cases if not
its BSE group in brackets and price trend with 52-week Q ~4 specified. Mcap 26667 26664 54905 54901
the symbol indicating the highs and lows. or the price has moved. In the futures and options Strike Price: The price at which An unexercised option the day’s closing value or low in the scrip; the letters ‘000’.

BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE
Abbott India ACC Adani Enter« Adani PortsH Adani Power Aditya Bir Fa m m H m H m « m mH H < « « « « m
(19857.9) (19867.3) (2171.3) (2174.0) (2424.0) (2423.6) (739.7) (739.8) (289.7) (289.9) (261.5) (261.5)
O 19711.1 19864.0 2168.6 2170.0 2413.5 2407.0 736.0 737.0 287.9 287.0 262.5 260.9 O O
19983.3 19980.0 2184.9 2184.9 2459.0 2459.3 751.8 751.8 294.8 294.9 266.8 266.8
w 19701.4 19700.0 2161.5 2100.4 2405.0 2405.0 735.3 734.1 285.2 285.3 259.9 260.0 w w
19824.1 19825.6 2168.7 2168.8 2450.6 2451.3 748.6 749.0 293.4 293.4 264.6 264.6
233 8099 2564 203K 51062 843K 82229 2864K 383K 6703K 85045 2019K K K K K K K K K K K K K
52.7 52.7 30.1 30.1 359.7 359.9 33.3 33.3 23.0 23.0 - -
W 23902/15525 23934/15514 2588/1901 2589/1900 2459/1339 2459/1336 925/652 925/652 345/70 345/70 322/190 322/189 W W
M 42126 42129 40726 40728 279363 279448 158131 158215 113163 113143 24828 24823 M M

Aurob Pharma« Axis BankH Bajaj Auto Bajaj FinH Bajaj Finsrv< Balkrishna IH Balram Chini« Bandhan Bank Bank of BarodaH Bata India< Berge Paint« Bharat Elctn« Bharat ForgeH Bharti Airtel< BHELH Biocon< BirlasoftH Bosch
(553.1) (553.4) (684.5) (684.5) (3985.2) (3984.1) (6056.5) (6059.8) (12246.7) (12250.0) (2291.3) (2291.3) (367.2) (367.0) (280.8) (280.8) (108.0) (108.0) (1810.3) (1810.6) (575.8) (575.8) (254.5) (254.4) (655.2) (655.5) (663.5) (663.0) (50.5) (50.5) (332.1) (332.5) (317.9) (318.0) (16357.0) (16366.2)
O 551.6 548.2 680.0 678.6 3986.0 3977.1 6040.0 6040.0 12200.0 12200.0 2272.6 2280.0 O 368.0 365.0 280.3 281.8 107.9 107.6 1812.3 1815.0 578.9 573.7 251.0 253.6 O 651.2 654.8 673.4 675.0 50.4 50.4 332.2 332.3 315.5 317.0 16420.1 16366.2
564.5 564.5 703.8 703.9 4034.0 4036.0 6096.8 6098.2 12468.2 12470.0 2297.0 2298.5 372.7 372.7 288.6 288.6 113.0 113.0 1829.6 1829.6 580.8 581.0 258.6 258.7 669.9 669.9 675.8 677.0 51.6 51.7 341.5 341.7 328.6 328.7 16462.3 16500.0
w 549.6 548.2 679.4 678.6 3966.4 3966.0 6004.3 6002.1 12107.7 12093.1 2266.2 2265.6 w 363.3 365.0 277.0 277.0 107.1 107.1 1806.8 1806.1 570.5 570.0 251.0 252.1 w 651.2 652.0 663.4 663.1 50.3 50.3 327.8 327.7 315.5 315.9 16266.4 16256.0
556.7 557.0 700.6 700.6 4002.3 4002.0 6062.5 6066.0 12445.3 12444.8 2290.7 2292.0 369.4 369.8 287.8 287.8 112.7 112.7 1823.4 1824.1 579.0 579.0 255.1 255.2 668.5 668.6 673.0 672.9 51.2 51.2 328.8 329.1 327.6 327.8 16381.4 16407.7
36701 1223K 672K 10171K 34433 512K 35508 979K 10416 423K 7763 146K 67524 1142K 269K 7347K 2290K 41577K 5079 239K 35898 903K 694K 10118K 25100 1212K 393K 7836K 1837K 17327K 89413 3776K 89913 3214K 1352 18990
12.3 12.3 16.5 16.5 18.8 18.8 57.8 57.8 43.5 43.5 31.4 31.4 14.6 14.7 368.5 368.5 8.0 8.0 232.3 232.4 75.0 75.0 22.4 22.4 28.9 28.9 88.0 88.0 43.5 43.5 60.9 60.9 19.8 19.8 39.7 39.8
W 978/503 978/503 867/618 867/618 4047/3028 4050/3027 8044/5236 8050/5220 19320/10777 19325/10727 2724/1682 2724/1691 W 526/298 526/298 350/230 350/230 123/73 123/73 2262/1550 2262/1550 872/544 873/544 261/162 261/162 W 848/596 848/595 782/513 782/513 79/41 80/41 414/305 414/305 586/307 586/307 19245/12940 19250/12932
M 32614 32632 215170 215186 115813 115806 367054 367263 198054 198047 44278 44304 M 7536 7543 46359 46350 58255 58281 23434 23443 56233 56238 62158 62170 M 31125 31130 374376 374348 17828 17828 39476 39506 9173 9178 48309 48386

BPCL Britannia« Can Fin HomeH Canara Bank CGCELH Chambal Fert Chola InvH CiplaH City Union Bk« Coal India Coforge Colgate« Containr Crp< Coromndl Int« Cummins (I)H Dabur India« Dalmia BharatH Deepak NitrtH
(315.7) (315.8) (3774.9) (3774.9) (505.5) (505.6) (214.5) (214.5) (391.0) (391.2) (303.6) (303.4) (670.9) (670.4) (966.5) (967.3) (154.1) (154.1) (195.8) (195.6) (3442.0) (3441.6) (1553.3) (1552.9) (670.5) (671.0) (1003.2) (1000.3) (1154.3) (1153.6) (550.5) (550.1) (1489.4) (1490.4) (1754.1) (1754.6)
O 315.4 314.9 3775.3 3775.0 506.5 507.4 214.0 214.2 392.7 391.0 303.7 303.3 O 663.6 668.0 963.9 958.2 153.9 153.8 194.5 195.0 3430.0 3435.0 1559.9 1551.0 O 670.6 670.7 995.0 1000.0 1164.0 1157.0 551.8 551.7 1485.9 1494.1 1750.0 1754.6
317.7 317.8 3796.4 3797.1 510.3 511.7 223.6 223.8 401.5 401.6 305.8 306.0 685.6 685.5 973.9 974.0 159.2 159.5 199.5 199.6 3431.5 3435.0 1567.2 1567.4 681.3 681.2 1008.0 1008.0 1166.8 1168.0 553.2 553.4 1522.5 1523.0 1778.3 1779.9
w 312.9 312.5 3745.4 3742.3 500.5 500.4 212.5 212.4 389.9 390.0 300.6 300.5 w 663.1 663.2 955.6 955.4 153.1 153.0 194.5 194.0 3366.0 3364.1 1542.3 1542.0 w 670.4 669.7 988.0 987.1 1138.2 1138.4 545.3 545.1 1485.9 1480.4 1745.2 1745.0
316.7 316.6 3785.6 3787.5 507.5 507.3 223.2 223.2 394.9 395.2 303.2 303.4 683.9 683.9 960.7 960.7 157.4 158.0 198.3 198.3 3411.1 3411.6 1564.4 1563.5 673.1 673.7 1001.1 1000.9 1153.3 1150.3 548.8 549.5 1512.3 1514.7 1770.3 1769.6
59369 2505K 3657 229K 14390 683K 956K 15552K 24076 1971K 55753 1108K 61968 1996K 22714 1163K 59660 2169K 549K 9914K 12164 485K 9137 136K 68447 1654K 12433 292K 19583 598K 38245 987K 3477 142K 20850 485K
7.8 7.8 59.8 59.8 14.3 14.3 7.1 7.1 42.2 42.2 9.8 9.8 26.2 26.2 30.8 30.8 15.3 15.4 7.0 7.0 31.4 31.4 39.5 39.4 38.6 38.6 19.2 19.2 36.1 36.0 55.9 56.0 24.8 24.8 49.7 49.6
W 503/294 503/293 4152/3050 4153/3050 721/408 722/407 273/142 273/142 512/312 513/312 516/261 516/261 W 770/470 768/469 1083/850 1083/850 184/109 184/109 209/133 209/133 6133/3224 6135/3218 1823/1376 1823/1376 W 754/554 754/554 1019/710 1019/709 1182/822 1182/822 659/482 659/482 2547/1213 2548/1213 3020/1682 3020/1681
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.
MUMBAI | WEDNESDAY, 20 JULY 2022 15
<

KIRLOSKAR ELECTRIC COMPANY LIMITED.,

Registered Office: No. 19, 2nd Main Road, Peenya 1st Stage,
Phase -1, Peenya, Bengaluru – 560 058;
CIN: L31100KA1946PLC000415
Tel No.: 080 28397256; Fax No.: 080 28396727;
E mail: investors@kirloskarelectric.com;
Website: www.kirloskarelectric.com

75TH ANNUAL GENERAL MEETING OF KIRLOSKAR ELECTRIC COMPANY LIMITED

The 75th (Seventy-Fifth)Annual General Meeting ("AGM") of the members of the Kirloskar Electric
Company Limited (“the Company”) will be held on Friday, August 12, 2022 at 11:00 A.M. through
Video Conference ("VC")/ Other Audio Visual Means ("OAVM"), in compliance with all the
applicable provisions of the Companies Act, 2013 and the Rules framed thereunder and the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 read with all applicable
Circulars on this matter issued by the Ministry of Corporate Affairs ("MCA") and the Securities and
Exchange Board of India ("SEBI"), to transact the business set forth in the Notice of theAGM.
In view of the COVID-19 pandemic situation, social distancing is a norm to be followed and in
compliance with the provisions of the Companies Act, 2013 (“Act”), SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and the aforesaid
Circulars, the AGM of the Company is being held through VC / OAVM. Hence, Members can
attend and participate in the ensuing AGM through VC/OAVM.
The Notice of the 75th AGM along with the Annual Report for the Financial Year 2021-22 will be
sent electronically to all those members, whose email addresses are registered with the
Company/ Registrar and share transfer agent/Depositories/Depository Participants. The
requirement of sending physical copies of the Annual Report has been dispensed with. However,
physical copies of the Annual Report for FY 2021-22 will be sent to those Members who
specifically request for the same. The Notice of the AGM and the Annual Report will also be made
available on the website of the Company i.e., www.kirloskarelectric.com and the website of
Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at
www.bseindia.com and www.nseindia.com respectively and on the website of CDSL at
www.evotingindia.com.
The VC/OAVM facility is being availed by the Company from Central Depository Services (India)
Limited (“CDSL”). Members can join and participate in the AGM through VC/ OAVM facility only.
Members attending the meeting through VC/ OAVM shall be counted for the purpose of quorum
under Section 103 of the Companies Act, 2013. The instructions for joining and the manner of
participation in the AGM are provided in the Notice of the AGM.
Members will have an opportunity to cast their votes(s) remotely on the business, as set forth in
the Notice of the AGM, through remote e-voting. The manner of remote e-voting for members
holding shares in dematerialized mode, physical mode and members who have not registered
their email addresses will be provided in the Notice of the AGM. The facility for e-voting will also
be provided at the AGM and the members attending the AGM who have not cast their votes by
remote e-voting, will be able to vote at the meeting.
Members are requested to contact the Depository Participants (‘DP’), in case of shares held in
electronic form or Integrated Registry Management Services Private Limited, Company’s
Registrar & Share Transfer Agent (“RTA”), in case the shares are held in physical form, for
validating/updating their e-mail addresses and mobile numbers. Members who have not
registered their e-mail addresses may temporarily get their email addresses and mobile
numbers registered with the RTA. In case of any queries, members may write to
irg@integratedindia.in. Alternatively, members may send an e-mail request to the e-mail id
irg@integratedindia.in along with scanned copy of the signed request letter providing the e-mail
address, mobile number, self-attested PAN copy and client master copy in case of electronic folio
and copy of share certificate in case of physical folio. Further, Members who are holding shares
in physical mode and have not updated their KYC details are requested to submit form ISR-1 to
the Company’s RTA for updating PAN and other KYC details. The said form is available on the
website of the Company at https://kirloskarelectric.com/investors/investors-
information/investor-service-request.html.
Members are requested to carefully read all the notes set out in the Notice of the AGM, which
shall be circulated in due course, and in particular, instructions for joining the AGM, manner of
casting vote through remote e-voting or through voting during the AGM.
By order of the Board of Directors
For Kirloskar Electric Company Limited
Sd/-
Place: Bengaluru Mahabaleshwar Bhat,
Date: July 19, 2022 Company Secretary & Compliance Officer
16
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1
.
MUMBAI | WEDNESDAY, 20 JULY 2022 17 <

BANK OF INDIA - KHED BRANCH

TEENBATTI NAKA, AT / Post : KHED,
DEMAND
TAL : KHED, DIST : RATNAGIRI. Phone No. 02356-264001
Email : callcentre@bankofindia.co.in NOTICE
The Authorised Officer of the Bank has issued demand notice on 21/10/2021 in compliance of section 13(2) of SARFAESI Act,
2002 to the below mentioned Borrower demanding outstanding amount within 60 days from the issue of the said notice,
mentioned as per details. However, notice issued to the Borrower is returned unrespondent. Hence this publication of the
notice is made for notice to the following Borrower:
Name of the Borrowers Nature of Outstanding Details of
and address Facility Dues Secured Asset
1. Mr. Rizwan Sayed Ali Term Loan EQM of House - Residential house no.114/3 (New
Husaini, (Home Loan) No.032000361) admeasuring 231.80 sq.mtr., ground
2. Mr. Sayyad Ali Ahmed Sanctioned Limit floor+first floor on land bearing S. No. 87 Hissa No.7,
Hussaini Rs. 16,50,000/- Rs.17,55,915.24/- bearing CTS No. 3015/10 situated at village Khed, Dak
Banglow, Tal- Khed, Dist Ratnagiri
At Post-Dak banglow, (Plus UCI from
Khed, Near Money wise 17/10/2021)
Center of Suresh More,
Dist-Ratnagiri-415709
Borrowers is hereby informed that Authorised Officer of the Bank shall under provision of SARFAESI Act, take possession
and subsequently auction the Secured Assets as mentioned above if the Borrowers do not pay the amount as mentioned
above within 60 days from the date of publication of this notice. The Borrowers is also prohibited under Section 13(13) of
SARFAESI Act to transfer by sale, lease or otherwise the said secured assets stated above without obtaining written consent
of the Bank. This public notice is to be treated as notice u/s 13(2) of the SARFAESI Act, 2002.
Borrowers is advised to collect the original notice issued under Section 13 (2) from the undersigned on any working day by
discharging valid receipt.
Place : Khed, Ratnagiri
PUBLIC
Sd/-
Date : 19/07/2022 Authorised Officer Bank of India NOTICE
NOTICE is hereby given that we, 1) Sukanraj C. Jain, 2) Kiran C. Jain, residing at 26A,
Bazar Road, near Jain Temple, Bandra (West), Mumbai – 400050 and 3) Dr. Prakash
C. Jain, residing at A/6, Liberty, Hill Road, opp. Bandra Police Station, Bandra (West),
Mumbai – 400050, owners of the land more particularly mentioned in the schedule
below have filed an Application to Tehsildar, Andheri to remove the name of
“Sanvrakshit Kul” in the other rights of the property situated at Village Chakala, Taluka
Andheri bearing Plot Survey No. 79A/1/1, and CTS No. 122, 122/1 to 31. With regards
GARODIA NAGAR JYOTI CO-OP. HOUSING SOCIETY LTD. to the said application, the hearing is scheduled by Tehsildar, Andheri on 01/08/2022
Regn No. BOM/HSG/4796/YEAR 1976, Date - 09/04-1976 at 11.30 a.m. Kindly take the same into consideration please.
Jyoti, Plot No. 143, Garodia Nagar, Ghatkopar (E), Mumbai-400 077
DEEMED CONVEYANCE PUBLIC NOTICE
Notice is hereby given that the above Society has applied to this office under Section 11 of Schedule of the Property
Maharashtra Ownership Flats (Regulation of the promotion of construction sale, management &
Transfer) Act, 1963 for declaration of Unilateral Deemed Conveyance of the following properties. Plot of land bearing Survey No. 79A/1/1, C.T.S. No. 122, 122/1 to 31, at Village
The next hearing in this matter has been kept before me on 02/08/2022 at 03:30 pm at the office Chakala, Taluka Andheri, Mumbai Suburban District Andheri (East), Mumbai – 400093
of this authority.
Respondent No. - (1) Smt. Parmeshwaridevi Gordhandas - Plot No. 143, Survey No.
249/3/1/143 C.T.S. No. 195/143, Garodia Nagar, Ghatkopar (E), Mumbai-400 077 (2) M/s. Jyoti Sd/- Sd/- Sd/-
Builders- A Partnership Firm- 288, Narshi Natha Street, Chandr Bhauvan, Mumbai-400 009 and
those, whose interests have been vested in the said property may submit their say at the time of Sukanraj C. Jain Kiran C. Jain Dr. Prakash C. jain
hearing at the venue mentioned below. Failure to submit any say shall be presumed that nobody
has any objection in this regard and further action will be taken accordingly. Place: Mumbai
DESCRIPTION OF THE PROPERTY :-
Bldg. of the Garodia Nagar Jyoti CHSL along with land as mention Jyoti, Plot No. 143, Garodia Date: 16-07-2022
Nagar, Ghatkopar (E), Mumbai-400 077
Survey No. Hissa No. Plot No. C.T.S. No. Claimed Area
195/143 Total Area
249/3/1/143 -- 143
(C.S.O. Ghatkopar) 619.70 sq.mtr.
Ref. No. MUM/DDR(2)/Notice/1941/2022 Procter & Gamble Hygiene and Health Care Limited
Place : Konkan Bhavan, CIN: L28931MH1984PLC267130
Competent Authority & District Dy. Registrar, Regd Office: - P&G Plaza, Cardinal Gracias Road, Chakala, Andheri (E), Mumbai - 400099
Room No. 201, Konkan Bhavan, Sd/-
(Pratap Patil) Tel: (91-22) 2826 6000; Fax: (91-22) 2826 7337; Email ID: investorpghh.im@pg.com; in.pg.com
C.B.D. Belapur, Navi Mumbai-400614.
Date : 18/07/2022 Tel.: 022-27574965 SEAL
Competent Authority & District NOTICE TO THE EQUITY SHAREHOLDERS
Dy. Registrar Co.op. Societies (2), Sub: Transfer of equity shares of the Company to Investor Education
Email : ddr2coopmumbai@gmail.com East Suburban, Mumbai
and Protection Fund (IEPF)
Pursuant to the provisions of Section 124 of the Companies Act, 2013 read along with the Investor
Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF
RANDHIR VIHAR SRA SAHKARI GRUHNIRMAN SANSTHA MARYADIT Rules”) notified by the Ministry of Corporate Affairs (“MCA”) on 28th February, 2017, the Company is
Regn No. SRA/ENG/773/S/PL/LOI, Dt. 06/07/2006 required to transfer all shares in respect of which dividend has not been paid or claimed by the
Lalasheth Compound, Tembipada Road, Astok Kedare Chowk, Village Kanjur, Bhandup (W) shareholders for seven consecutive years or more in the name of Investor Education and Protection
Mumbai -400078. Fund Suspense Account (“IEPF Suspense Account”) with one of the Depository Participants to be
DEEMED CONVEYANCE PUBLIC NOTICE identified by the Investor Education and Protection Fund Authority (“IEPF Authority”).
Notice is hereby given that the above Society has applied to this office under Section 11 of Adhering to the various requirements set out in the Rules, the Company has communicating individually
Maharashtra Ownership Flats (Regulation of the promotion of construction sale, management & to the concerned shareholders whose shares are liable to be transferred to the DEMAT Account of the
Transfer) Act, 1963 for declaration of Unilateral Deemed Conveyance of the following properties. IEPF Authority, at their latest available address registered with the Company and has uploaded full
The next hearing in this matter has been kept before me on 02/08/2022 at 03:45 pm at the office
details of such shareholders and shares due for transfer to the DEMAT Account of the IEPF Authority
of this authority.
Respondent No. - (1) (a) Smt. Sharadadevi Shivrama Singh (e) Shri. Shivshankar on its website at in.pg.com
Shivram Singh, (f) Shri. Randhir Shivram Singh (g) Shri. Sachin Shivram Shingh (above In case the Company does not receive any communication from the concerned shareholders by October
are Developers) above (1) (a) to (g) having add- Shop 1, Plot No. 2, Sanmanshri Co-operative 15, 2022, or such other date as may be extended, the Company shall, with a view to complying with
Housing Society, M. Sanmansingh Marg, Bhandup (W), Mumbai -400078 (2) Shri. J. Amarkor
the requirements set out in IEPF Rules, transfer the shares to the DEMAT Account of the IEPF Authority
(As per PR Card) Address Not known (3) Shri. Sanmansingh (As per PR Card) Address Not
known (4) (a) Smt. Sharadadevi Shivramsingh (e) Shri. Shivshankar Shivramsingh (f) Shri. by the due date as stipulated in IEPF Rules, without any further notice as per procedure stipulated in
Randhir Shivramsingh (g) Shri. Sachinsingh Shivramshingh (i) Smt. Suchitra Shivramsingh IEPF Rules which are as under:
above (4) (a) to (i) having add- Shop 1., Plot No. 2 Sanmanshri Co-Operative Housing Society, i) In case shares held in physical form: by issuance of duplicate share certificate(s) and thereafter
M. Sanmansingh Marg, Bhandup (W), Mumbai 400078 5) Shri. Rajiv Banwarilal Gupta (6) by informing the depository by way of corporate action to convert the duplicate share certificate
Shri. Kisan Hanbans Gupta above 5 & 6 having Address Not known and those, whose interests
into DEMAT form and transfer in favour of the IEPF Authority.
have been vested in the said property may submit their say at the time of hearing at the venue
mentioned below. Failure to submit any say shall be presumed that nobody has any objection in ii) In case shares are held in demat mode: by informing the depository by way of corporate action,
this regard and further action will be taken accordingly. where the shareholders have their accounts for transfer of the shares in favour of the IEPF Authority.
DESCRIPTION OF THE PROPERTY :-
The Concerned shareholders may note that, upon such transfer, they can claim the said share(s) along
Randhir Vihar SRA Sahkari Gruhanirman Sanstha Maryadit along with land as mention Lalasheth
Compound, Tembipada Road, Astok Kedare Chowk, Village Kanjur, Bhandup (W) Mumbai -400078. with the dividend(s) from IEPF Authority after following the procedure prescribed under IEPF Rules.
No claim shall, however, lie against the Company in respect of the said unclaimed dividends and the
Survey No. Hissa No. Plot No. C.T.S. No. Claimed Area shares transferred as above.
187, 42 B, 187/1 Total Area For any queries on the subject matter, you may write/contact to the Company’s Registrar and Share
-- -- --
(C.S.O. Mulund) 2045.60 sq.mtr. Transfer Agent, Link Intime India Private Limited, C 101, 247 Park, L B S Marg, Vikhroli West, Mumbai
Ref. No. MUM/DDR(2)/Notice/1961/2022 400 083 Tel No: +91 22 49186000 Fax: +91 22 49186060, e-mail : rnt.helpdesk@linkintime.co.in and/or
Place : Konkan Bhavan, to the Company at abovementioned registered office.
Competent Authority & District Dy. Registrar,
Sd/- For Procter & Gamble Hygiene and Health Care Limited
Room No. 201, Konkan Bhavan,
C.B.D. Belapur, Navi Mumbai-400614. (Pratap Patil) Sd/-
Competent Authority & District Place: Mumbai Ghanashyam Hegde
Date : 18/07/2022 Tel.: 022-27574965 SEAL
Dy. Registrar Co.op. Societies (2), Date: July 19, 2022 Director and Company Secretary
Email : ddr2coopmumbai@gmail.com East Suburban, Mumbai
18
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1

Vashind Branch: Durvankur Opp. Telephone Office, Shriram

Nagar, Vashind (W), Taluka - Shahapur, Dis - Thane, Pin - 421604
India. Email- VASHID@bankofbaroda.com, Web. www.bankofbaroda.
NOTICE TO BORROWER
(UNDER SUB-SECTION (2) OF SECTION 13 OF THE SARFAESI ACT, 2002)
To, Date: 01.07.2022
Prabhakar Devram Warghade
Flat No.302, 3rd Floor,Building No. 2-C, Maitri Housing Society,
Shubh Vastu Khativali, Taluka Shahapur Dist:- Thane
Dear Sir / Madam,
Re: Credit facilities with our Vashind Branch.
1. We refer to Housing Loan facility & Top-Up Loan facility sanctioned to you by Bank of Baroda,
Vashind Branch. Pursuant to the above sanction you have availed and started utilising the credit
facilities after providing security for the same, as hereinafter stated. The present outstanding in
various loan/credit facility accounts and the security interests created for such liability are as under:
Nature and Limit Rates of Interest O/s as on 29/04/2022 Security agreement
type of facility as of date of NPA (inclusive of interest upto with brief description of
29/04/2022) securities
Housing 10,82,868.00 7.35% Rs.10,58,294.68 Equitable Mortgage of Flat
Loan No.302, 3rd Floor, Building
no. 2-C, Maitri Housing
Top Up 3,80,000.00 8.90% Rs.3,73,621.19 Society, Shubh Vastu, Village
Loan Khativali, Tal-Shahapur,
Dist-Thane 421601
Total 14,62,868.00 Rs.14,31,915.87
2. As you are aware, you have committed defaults in payment of interest on above loans/outstanding
starting for the quarter ended Jan 2022. You have also defaulted in payment of instalments of term
loan/demand loans which have fallen due for payment on Feb 2022 and thereafter.
3. Consequent upon the defaults committed by you, your loan account has been classified as
non-performing asset on 04.04.2022 in accordance with the Reserve Bank of India directives and
guidelines. Inspite of our repeated requests and demands you have not repaid the overdue loans
including interest thereon.
4. Having regard to your inability to meet your liabilities in respect of the credit facilities duly
secured by various securities mentioned in para 1 above, and classification of your account as
a non-performing asset, we hereby give you notice under sub-section (2) of section 13 of the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002, and call upon you to pay in full and discharge your liabilities to the Bank aggregating
Rs.14,31,915.87 as stated in para 1 above, within 60 days from the date of this notice. We further
give you notice that failing payment of the above amount with interest till the date of payment, we
shall be free to exercise all or any of the rights under sub-section (4) of section 13 of the said Act,
which please note.
5. Please note that, interest will continue to accrue at the rates specified in para 1above for each
credit facility until payment in full.
6. We invite your attention to sub-section 13 of section 13 of the said Act in terms of which you are
barred from transferring any of the secured assets referred to in para 1 above byway of sale, lease
or otherwise (other than in the ordinary course of business),without obtaining our prior written
consent. We may add that non-compliance with the above provision contained in section 13(13) of
the said Act, is an offence punishable under section 29 of the Act.
7. We further invite your attention to sub section (8) of section 13 of the said Act in terms of
which you may redeem the secured assets, if the amount of dues together with all costs, charges
and expenses incurred by the Bank is tendered by you, at any time before the date of publication of
notice for public auction/inviting quotations/tender/private treaty. Please note that after publication
of the notice as above, your right to redeem the secured assets will not be available.
8. Please note that this demand notice is without prejudice to and shall not be construed as waiver
of any other rights or remedies which we may have, including without limitation, the right to make
further demands in respect of sums owing to us. Yours faithfully,
Sd/-
Authorised Officer, Bank of Baroda

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Regd.Office: 203, Embassy Centre, Nariman Point, Mumbai-400 021.
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B/01/2022-23 pkuksa [kwnZ cYcw ¼ca/kw½ Vksyh ds chp 23126000.00 462600.00 10000.00 12 ¼ckjg½ ekg UGRO CAPITAL LIMITED NOTICE
pkSM+h unh ij iqy fuekZ.k Corporate Identification Number (CIN): L67120MH1993PLC070739. NOTICE is hereby given pursuant to Regulation 29 and 47 of the
Registered Office: Equinox Business Park, Tower -3, 4th Floor, LBS Marg, SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2- osclkbV esa fufonk izdk”ku dh frfFk & 25-07-2022 Off BKC Road, Kurla (West), Mumbai 400070. 2015 that a meeting of the Board of Directors of the Company
3- bZ&fufonk izkfIr dh vafre frfFk ,oa le; &fnukad 01-08-2022 vijkg~u 5%00 cts rd Tel: +91-22-48918686; Website: www.ugrocapital.com is scheduled to be held on Thursday, July 28, 2022, to inter-alia,
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jk¡ph esa fufonk 'kqYd] vxz/ku dh jkf”k ,oa Affidavit tek djus dh vafre frfFk ,oa le; 02-08-2022 vijkg~u 05%00 cts and Consolidated) of the Company for the First Quarter ended June
rd NOTICE OF ANNUAL GENERAL MEETING 30, 2022.
This notice can be accessed on the Company’ s website
5- fufonk [kksyus dk LFkku & eq[; vfHk;ark dk;kZy;] xzkeh.k fodkl fo”ks"k iz{ks=] ,Q0 ,Q0 ih0 Hkou] /kqokZ] jk¡ph Notice is hereby given that the 29th Annual General Meeting (“AGM”) of the www.lkpsec.com and can also be accessed on the stock exchange’s
6- fufonk [kksyus dh frfFk ,oa le; &03-08-2022 vijkâu 2%00 cts members of UGRO Capital Limited (‘the Company’) will be held on Friday, website at www.bseindia.com.
7- fufonk vkeaf=r djus okys inkf/kdkjh dk uke ,oa irk %& dk;Zikyd vfHk;ark] xzkeh.k fodkl fo”ks"k izeaMy] gtkjhckx 12th August, 2022 at 11.00 a.m., through Video Conferencing (“VC”)/ Other For LKP Finance Limited
8- bZ&fufonk izdks"B dk nwjHkk"k laå & 8986648686 ¼lacaf/kr dk;Zikyd vfHk;ark dk nwjHkk"k uEcj½ Audio Visual Means (“OAVM”) to transact the business specified in the Notice Sd/-
9- fufonk 'kqYd jk"Vªh;d`r cSad }kjk fuxZr Mªk¶V ;k cSdlZ psd tks dk;Zikyd vfHk;ark] xzkeh.k fodkl fo”ks"k izeaMy] convening the AGM of the Company. The Company has sent the Annual Girish Innani
gtkjhckx ds inuke ls ns; gks] nsuk gksxkA Report of the Company for the Financial Year 2021-22 along with the AGM Place : Mumbai General Manager (Legal) &
Notice and E-voting procedure on Tuesday, 19th July 2022 through electronic Date : July 19, 2022 Company Secretary
foLr`r tkudkjh ds fy;s osclkbZV www.jharkhandtenders.gov.in ,oa dk;kZy; dh lwpuk iê ij ns[kk tk ldrk gSA
means to Members whose e-mail address were registered with the Company/
dk;Zikyd vfHk;ark the Registrar and Transfer Agent/ Depositories in compliance with the
PR 274038 Rural Development(22-23).D xzkeh.k fodkl fo’ks"k izeaMy]gtkjhckx applicable provisions of the Companies Act, 2013, (“the Act”), Circular Nos.
20/2020 dated 5th May 2020 and 02/2022 dated 5th May 2022 issued by the
Ministry of Corporate Affairs and in accordance with Circular No. SEBI/HO/
CFD/CMD2/CIR/P/2022/62 dated 13th May 2022 issued by the Securities and
Exchange Board of India.
In terms of Section 108 of the Act, read with Rule 20 of the Companies
(Management and Administration) Rules, 2015 and Regulation 44 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the
Company is providing the facility to its members to exercise their right to vote
by electronic means on any or all of the businesses specified in the Notice
convening the Twenty Ninth AGM of the Company through e-voting services
of Central Depository Services (India) Limited (“CDSL”). The details pursuant
to the act are as under;
a) Members holding the shares either in Physical form or dematerialized
form, as on the cut-off date i.e. Friday, 5th August, 2022 are (“eligible
Members”), to exercise their rights to vote by the remote e-voting and
e-voting system in the AGM on any or all of the businesses specified in the
Notice convening the AGM of the Company.
b) The Register of Members and Share Transfer Books of the Company will
remain closed from Saturday, 6th August, 2022 to Friday, 12th August, 2022
(both days inclusive).
c) The remote e-voting will Commence on Tuesday, 9th August, 2022 at
9.00 A.M. (IST);
d) The remote evoting will end on Thursday, 11th August, 2022 at 5.00 P.M. (IST);
e) The remote evoting module shall be disabled for voting thereafter and
once the vote on a resolution is cast by the Member, he/she shall not be
allowed to change it subsequently or cast the vote again;
f) The Members can participate in the AGM even after exercising their right to
vote through remote e-voting but shall not cast their vote again in the AGM;
g) The facility for evoting will also be made available during the AGM and
those members present in the AGM through VC Facility, who have not
cast their vote on the resolutions through remote e-voting are otherwise
not bared from doing so shall be eligible to vote through the e-voting
system during the AGM.
h) Only a person whose name is recorded in the Register of Members or in
the Register of Beneficial Owners maintained by the Depositories as on
the Cut-off date i.e. Friday, 5th August, 2022, shall be entitled to avail the
facility or remote e-voting as well as evoting during the AGM;
i) Members who are holding shares in physical form or who have not
registered their email address with the Company/Depository or any
person who acquires shares of the Company and becomes a Member
of the Company after the Notice has been sent electronically by the
Company, and holds shares as of the cut-off date, i.e. Friday, 5th August,
2022, such Member may obtain the User ID and password by sending a
request at helpdesk.evoting@cdslindia.com or rnt.helpdesk@linkintime.
co.in However, if a Member is already registered with CDSL for e-voting
then existing User ID and password can be used for casting vote;
j) The Annual Report for the financial Year 2021-22 along with the Notice
of the AGM is also available on the Website of the Company, i.e;
www.ugrocapital.com, website of the Stock Exchanges i.e; BSE Limited
and National Stock Exchange of India Limited and also on the website of
the CDSL at www.evotingindia.com
In case of any queries/ grievances relating to e-voting, Members may refer
to the Frequently Asked Questions (FAQs) and e-voting Manual for Members
at the HELP Section at the Website of the CDSL, i.e: www.evotingindia.com
or write an email to helpdesk.evoting@cdslindia.com or call on toll free no.:
1800 22 5533.
By Order of the Board of Directors
For UGRO Capital Limited

Sd/-
Shachindra Nath
th
Date: 19 July, 2022 Vice Chairman and Managing Director
.
MUMBAI | WEDNESDAY, 20 JULY 2022 19 <

MULUND AMBE MAHAL CO-OP. HOUSING SOCIETY LTD.

Regn No. BOM/WT/HSG/TC/1244/1984
Plot No. 823, P. K. Road, Mulund (W), Mumbai -400080.
DEEMED CONVEYANCE PUBLIC NOTICE
Notice is hereby given that the above Society has applied for rectification of Deed Of
Assignment order of following properties passes on 15/10/2015 by this authority in favour
of applicant society under Section 11 of Maharashtra Ownership Flats (Regulation of the
promotion of construction sale, management & Transfer) Act, 1963. The hearinu in this
matter has been kept before me on 22/08/2022 at 04.15 pm at the office of this authority.³
Respondent No. - (1) M/s. Shivshakti Builders, Through its Partners, (a) Rajesh
Gopal Yadav (b) Kantaben G. Yadav (c) Minaben Ashok Yadav above 1 (a) to (c) Having
address – Prakash Kunj, Shop No. 2, N. S. Road, Mulund (W), Mumbai-400080 (2) Smt. Nalini
Thakkar C/O Rupal Thakkar having add- D-202, 2nd floor, Mount Classis, Yogi Hills, Mulund
(W), Mumbai-400080 (3) Shri. Pratap Odhavji Anjaria alias Daiya having add- E-702, Pain
wood, Vasant Garden, N.E.S. International School, Mulund (W), Mumbai-400080 (4) Shri Praful
Sanjay Kotocha having add- D-3, Sumati Dham, Ground floor, Vina Nagar, Phase-2, Mulund
(W), Mumbai-400080 (5) Shri. Ashwin Odhavji alias Daiya Having add- 117/91, Hindusthan
Chauk, Mulund Colony, Mumbai-400082 (6) Smt. Urmila Dhiraj Thakkar Having add- 117/91,
Hindusthan Chauk, Mulund Colony, Mumbai-400082.
and those, whose interests have been vested in the said property may submit their say at the
time of hearing at the venue mentioned below. Failure to submit any say shall be presumed that
nobody has any objection in this regard and further action will be taken accordingly.
DESCRIPTION OF THE PROPERTY :-
Mulund Ambe Mahal Co-op. Hsg. Soc. Ltd. along with land as mention below Plot No. 823, P. K.
Road, Mulund (W), Mumbai -400080
Survey No. Hissa No. Plot No. C.T.S. No. Claimed Area
938, 938/1 to 28 area 1093.40 sq.mtr.
1000 -- 823 (C.S.O. Mulund) area 574.7 sq.mtr.
Total Area 1668.8 sq.mtr.
Ref. No. MUM/DDR(2)/Notice/1965/2022
Place : Konkan Bhavan,
Competent Authority & District Dy. Registrar,
Room No. 201, Konkan Bhavan, Sd/-
C.B.D. Belapur, Navi Mumbai-400614. (Pratap Patil)
Competent Authority & District
Date : 19/07/2022 Tel.: 022-27574965 SEAL
Dy. Registrar Co.op. Societies (2),
Email : ddr2coopmumbai@gmail.com East Suburban, Mumbai

Kandivali (W) Branch

Address: No.6, Manek Nagar, M G Road, Kandivali (W), Mumbai - 400 067
Off: +8433988401/ 402/403
BREAK OPEN LOCKER
To All Concerned
Dear Sir/Madam,
The Below mentioned customers are hereby notified that the Locker not operated for more than 3 years
& Locker Rent mentioned against their names are over due have not been paid the locker rent shall be
immediately vacated on account of the above we therefore notify them that if the entire overdue rent is not
paid/ non operation of Locker within 15 days from the date of publication in the newspaper, the locker will be
broken open as per the Locker Agreement executed by them and the rent will be recovered by selling the
articles found in the locker, if any, as per the Locker Agreement. All expenses for breaking open of the locker
shall have to be borne by the customers in addition to the overdue rent.
Therefore they are advised to make the payment of the overdue rent / operate the Locker without fail within
the period mentioned above.

LOCKER RENT OVER DUE FOR MORE THAN 3 YEARS

Locker
Locker Over due
Sr. Locker Holders name & Type &
Locker Holders address Rent Over Locker
No. branch Locker
due since Rent
No.
1 Hiraben Ramanlal Mehta 75, Dinanath Apartment M C/254 25.07.2015 Rs. 23554/-
, Sheetal B Mehta & G Road, Kandivali West
Ms. Chhaya R Mehta Mumbai 400 067
KANDIVALI-W
2 Mr. Ajit Natwarlal Shah G-318, Kamla Nagar , M A/357 01.11.2018 Rs.7433/-
& Ms. Deepa Ajit Shah G Road, Kandivali West
KANDIVALI-W mumbai 400 067
3 Mr. Kamalkant Anant K,103 RNA Regency A/421 11.12.2018 Rs.7234/-
Banodker & Mrs. Minaxi Park CHs Ltd, M G Road,
Kamala Banodker Kandivali West, Mumbai
KANDIVALI-W 400 067
4 Mr.Anil Tricumdas Parekh Assumption View, M G Road, C/62 Locker not
& Saryu Anil Parekh Kandivali West Mumbai 400 operated
KANDIVALI-W 067 since
16/07/2010
5 PRAJAKTA RAKESH A2/301, 3RD FLOOR, D/152 31/1/2017 Rs.32269/-
TERSE & RAKESH P YUGANDHAR SUDAMA
TERSE DOMBIVALI CHS, OPP NANA NANI
EAST PARK, MANPADA ROAD,
DOMBIVALI EAST, 421201.
6 POONAM B THAKUR- BLG NO 5, FLAT NO-4, A/443 17/11/2018 4391/-
MAHAKALI CAVES RD SHER E PUNJAB CHS,
MAHAKALI CAVES RD,
ANDHERI (E). MUMBAI
-- 93
7 MAX MELKYN A/303,ASHWIN A/567 16/10/2018 4440/-
DSOUZA,MABEL, IDA-- NAGAR,DEEWAN MANN,
MAHAKALI CAVES RD VASAI (WEST)THANE
THANE 401202
8 Mrs. Shilpa Rajesh Patel/ 1/24, Kailash Kiran, F/672 27/09/2019 30701/-
Mr. Rajesh Raghavji Tilak Road,Ghatkopar
Patel--Ghatkopar East East,Mumbai 400077
9 Mr. Nirav Nalin Shah/ B-43, Ground Flr., D / 591 2/3/2019 15745/-
Mrs. Neelam N Shah/Mrs Sindhu Baug B,Tilak
Sadhana Haria-Ghatkopar Road,Ghatkopar East
East ,Mumbai 400077
10 BAJAJ NARAINDAS C 1 / 1 LAXMI SADAN B/118 4/3/2017 5637/-
KHUSHIRAM - KALYAN NEAR OLD JAI HIND
SCHOOL ULHASNAGAR 3
421003
11 SONTAKKE KUSUM N - 7, GEETA NIWAS, B/180 10/3/2017 5322/-
KALYAN RAMBAUG LANE NO.5 ,
KALYAN
12 Thakkar Ashok Nanji 304, Ashirwad, P K Road, A/111 21.11.2015 11721
/ Thakkar Meena A / Mulund West, Mumbai
Thakkar Laxmiben Nanji 400080
Mulund West

13 Sawhney Santosh G / 2994/12, Opp. Blocl No. A/186 01.11.2017 8945

Sawhney Gurmukh Singh 134, Hindustan Chowk,
Mulund West Mulund Colony, Mulund
West, Mumbai 400080
14 Haseja Manoharlal A 35, Vimal Apts, 7th Floor, A/281 03.06.2016 10942
Phagunmal / Haseja Bhakti Marg, Mulund West,
Bhavana Manoharlal Mumbai 400080
Mulund West
15 Joshi Vijay B / Joshi Flat No. 5, Nilgiri CHS, A/5 30.03.2015 12641
Bharati V / Joshi Sanjay Panchpakadi, Thane 400604
Vijay / Joshi Jigna Sanjay
Mulund West
16 Gulati Surendrakumar M 3, Madam Niwas, RHB A/55 23.03.2013 15518
/ Gulati Anurita Surendra Road, Mulund West,
Mulund West Mumbai 400080
17 Vora Sapna Kalpesh / A/4, Shivganga Apartment, B/444 12.04.2019 8166
Vora kalpesh Dalsukhbhai Zaver Road, Mulund West,
Mulund West Mumbai 400080
18 Powar Vijaya / Powar Maruti Enclave, 2nd Floor, E/456 23.03.2014 32617
Pooja Mulund West B 206, Sector 8, Airoli, Navi
Mumbai, 400708
19 Bombino Video Pvt. Ltd. 8, Shilay Industries, A/126 29/12/2018 Rs.7405/-
GOREGAON WEST 8, Udyog Nagar, S. V.
Road, Goregaon-W,
Mumbai-400062.
20
>
MUMBAI | WEDNESDAY, 20 JULY 2022 1
.
MUMBAI | WEDNESDAY, 20 JULY 2022 TAKE TWO 21 <

TMB looks back SKM brass questions MSP

of the Sterling stake. But by 2011, Katra exit-
ed by selling its stake to Standard Chartered,
this too not without controversy.
The transaction had attracted show-

panel mix, to give it a miss

cause notice from the Enforcement

to the future
Battered by three decades of controversy, the
storied bank hopes to put its troubles behind it
with its impending IPO
TMB: BANKING ON GROWTH
nGross NPA* nNet NPA*
Directorate (ED) to TMB and Standard
Chartered Bank, among others, for
contravention of the Foreign Exchange
Management Act. The bank’s cases are
before various agencies including the Farmers’ grouping has also been roiled by factional However, differences have
RBI and ED. By the end of 2021-22, 4,871 cropped up after the repeal of
cases were pending against the bank or disputes since year-long agitation was called off the Acts and the end of the agi-
its directors, of which around 4,554 are
valued at about ~6,209 crore. The bank SANJEEB MUKHERJEE
tation on whether members
should join active politics.
did not respond to questions from New Delhi, 19 July A section of the SKM, largely
Business Standard. composed of groups from
Meanwhile, the RBI instructed TMB’s The three slots that the Centre Punjab (the biggest in terms of
management to get the bank listed by has kept vacant for the Sam- manpower and resources),
December 31, 2021. This process has yukta Kisan Morcha (SKM) in moved out when some from this
been delayed because the bank’s AGMs the high-powered panel form- faction — composed of mem-
could not be held on time. Sources indi- ed to make the Minimum Sup- bers Gurnam Singh Chaduni
cate that the listing is likely within the port Price (MSP) mechanism and fronts like BKU (Rajewal) —
next few months. more effective and transparent contested the Assembly polls.
If these controversies were not enough, are unlikely to be filled by the A few days ago, the organi-
the DRHP filing in September 2021 drew farm grouping. The reasons members of the panel. Yadav said Choudhury had sation split again with two core
more controversy, this time from behind this are reservations Farmer leader Darshan Pal been part of the Bhartiya Krishak committee members of the SKM
Institutional Investor Advisory Services over the composition of the 29- betrayed a lack of belief in the Samaj and recently joined the — Jagjit Singh Dallewal and
(IiAS), an influential proxy advisory firm member committee. committee, saying its terms and BJP; Chaudhury is a member of Shivkumar Sharma “Kakkaji” —
that provides voting recommendations on The vacant slots will be filled references aren’t clear. Farmer the national working committee holding a convention of about
shareholder resolutions of listed compa- when the SKM, which spear- leaders from Punjab and Hary- of the RSS-affiliated Bhartiya 30 farmers’ organisations.
nies. IiAS approached Sebi stating that the headed the year-long protest ana also rejected the panel. Kisan Sangh (BKS); Patel has The duo claimed their effort
IPO should be allowed only after legal against the three farm laws the That apart, Yogendra Yadav, been a BJP MLC from Mahara- was to “depoliticise” the SKM
issues are sorted. Despite these objections, Centre introduced in 2020, a prominent leader of the agita- shtra; and Patil has been linked and announced a parallel group
Sebi approved TMB’s IPO. sends the names. tion, questioned the credentials with Shetkari Sangathana and is in response to the former’s call
How will the IPO help this controver- Prominent voices in the SKM of some of the non-SKM farmers’ a votary of the World Trade for protests against the Centre
sy-ridden bank? People close to the oper- have questioned the commit- representatives roped in by the Organization. Meanwhile, Pra- from July 18. Kakkaji is a former
(in %) ations of the bank believe that the listing tee’s composition and its terms government for the panel in a kash is the Haryana unit presi- leader of BKS, while Dallewal is
will draw a line under the long-standing of reference, alleging that it vio- lengthy note on Monday. He said dent of a faction of the Bhartiya president of Bhartiya Kisan
nDeposit growth nAdvance growth
disputes since it could offer some investors lates one basic assurance of the the five such representatives Kisan Union that is known for Union Ekta-Sidhupur.
9.67
12.1

price discovery to exit. It could also, said government — looking into the were strong advocates of the its favourable views on the Acts. The new grouping is reported
11.44

11.26
8.35
8.18

officials, enable the bank to raise fresh modalities of making MSP a repealed laws and loyalists of the Yadav also said the chairman to have targeted the left-leaning
7.8

capital and expand. legal right. government. of the committee, former agri- All India Kisan Sabha (which has
The IPO consists of a fresh issue of “Today, we held a meeting of They, Yadav said, have been culture secretary Sanjay been part of the SKM) and said
4.64
4.81
4.32

15,827,495 equity shares and an offer-for- non-political leaders of the Sam- either directly linked to the rul- Agarwal, had framed the three farmers’ groups should not have
3.44
3.62
3.6

sale of up to 12,505 equity shares by share- yukta Kisan Morcha. All leaders ing Bharatiya Janata Party laws and was a strong advocate any political affiliations.
1.98
2.4
2.16

1.69

holders. The lender plans to use the pro- rejected the government’s panel. (BJP) or its ideological parent, of them; as was NITI Aayog The duo has also reportedly
1.8

0.95
0.74

ceeds of the fresh issue towards The government has inducted the Rashtriya Swayamsevak member Ramesh Chand who been opposed to allowing the
augmenting its Tier-I capital base to meet so-called farmer leaders in the Sangh (RSS), or have supported drafted the laws. Punjab-based outfits that split
2017-18 2018-19 2019-20 2020-21 2021-22 future capital requirements. Axis Capital, panel, who didn’t have anything their policies. The SKM has been a divided ahead of the state polls to rejoin.
221.9 258.5 407.6 603.3 821.9 Motilal Oswal Investment Advisors and to do with our agitation, against The other farmers’ represen- house and the consensus that Even within Rakesh Tikait’s
SBI Capital Markets are the book running the three farm laws at the Delhi tatives picked for the panel are existed on several issues during Bhartiya Kisan Union, which
Profit after tax (~/cr) lead managers. borders,” farmer leader Abhim- Gunwant Patil, Krishan Bir the agitation is no longer pres- led the agitation at Delhi’s bor-
* percentage of total advances Source: TMB
According to industry experts, TMB has anyu Kohar told PTI. He alleged Choudhury, Pramod Kumar ent. At one point, it boasted a ders with Uttar Pradesh, a splin-
put in a good performance despite these the government has also made Chaudhary, Guni Prakash and conglomeration of over 300 ter section is calling itself the
SHINE JACOB known as Nadar Bank, set up to serve this disputes. “The quality of their assets is some corporate executives Sayyed Pasha Patel. farmers’ groups. BKU (apolitical).
Chennai, 19 July tightly knit entrepreneurial community — good. The bank management always
and changed its name to the current one proved that the rise in litigation never

J
une was a memorable month for the in 1962. Its troubles began in 1994 when affected the functioning of the bank. It is
101-year-old Tamilnad Mercantile 67 per cent of its shareholders sold stakes like the HDFC of the 1990s, with tremen- KERALA WATER AUTHORITY e-Tender Notice
Bank (TMB). Last month, the to the Mumbai-based Essar Group for ~28 dous growth potential,” said V Nagappan, Tender No : 79 & 80 /2022-23/KWA/PHC/D2/TVM
Thoothukudi-based bank witnessed two crore, precipitating a rift between the a Chennai-based market expert. JJM (2023-24) – Thiruvananthapuram District -Providing pipeline extension &
new landmarks in a history in which the Nadar community and the oil-to-infra- The numbers back Nagappan’s state- FHTCs to households of Athiyanoor & Venganoor Grama Panchayath. EMD:
last three decades could easily qualify for structure Ruia-owned group. ment. Out of the 509 branches Rs. 1,00,000/-. Tender fee: Rs. 7,500/-. Last Date for submitting Tender:
a Kollywood blockbuster. First, it held three With the Reserve Bank of India (106 rural, 247 semi-urban, 80 09-08-2022 03:00:pm. Phone: 0471-2322303. Website:
annual general meetings — the 98th, 99th (RBI) withholding approval for
The lender plans urban and 76 in metropolitan), www.kwa.kerala.gov.in, www.etenders.kerala.gov.in
and 100th — all on the same day (June 9). the sale, NRI C Sivasankaran, a
to use the only around 40-50 are report- Superintending Engineer
proceeds of the KWA-JB-GL-6-563-2022-23 PH Circle,Thiruvananthapuram
Second, it received approval from the serial deal-maker, stepped in. His edly loss-making. Of the over-
Securities and Exchange Board of India Sterling Group bought the Essar
fresh issue all customer base of 4.93 mil-
(Sebi) to go ahead with its initial public Group shares in 2003 for an
towards lion, 69.96 per cent comprised
offering (IPO), to raise around ~1,000 crore. undisclosed amount.
augmenting its customers who had been asso-
Behind both events lie boardroom bat- But the controversy had left
Tier-I capital ciated with the bank for over
tles, legal tussle and public conflicts as its mark on the community. One
base to meet five years. The financials have
well as many critical questions about cor- section resisted Sivasankaran’s
future capital been decent, too (see chart).
porate governance and community-based buyout. It was after a reported
requirements Experts indicate that it may
banks that remain unanswered. The truce meeting overseen by for- also need a makeover, similar
headline-grabbing part of these develop- mer Deputy Prime Minister L K Advani to the way CSB Bank, formerly the Catholic
ments lie in the fact that 37.61 per cent of that Sivasankaran agreed to sell his shares Syrian Bank that went through its own
TMB’s paid-up equity, or 53.59 million back to the Nadar community in 2004. A share of controversy and is now owned by
shares, are subject to legal proceedings group called the Nadar Mahajana Bank the Canadian billionaire Prem Watsa’s
between Indian and overseas shareholders. Share Investors’ Forum joined hands to Fairfax group, changed its brand identity
In its draft red herring prospectus (DRHP), buy back Sivasankaran’s shareholding but after an IPO in 2019. “Nobody holds beyond
the bank had said to incoming sharehold- failed to mobilise the requisite amount. 5 per cent in TMB, which is why it is still
ers that it will not be able to hold AGMs In 2007, a consortium of 18 foreign considered a community-based bank. To
without court clearance. investors led by Katra Holdings owned by grow further, it will have to come out of
That partly explains the reason for the Ramesh Vangal, former high-profile coun- the shell and go for a makeover,” said an
delayed AGMs that ended up being a three- try head of PepsiCo India, and other people industry expert. The IPO could well be its
in-one affair. The bank was originally from the Nadar community acquired part best chance to do that.

Gujarat industry estimates over

~5,000-cr losses due to heavy rain
VINAY UMARJI
Ahmedabad, 19 July

Stakeholders of industry in Gujarat have

estimated losses of ~5,000-6,000 crore,
even as the state government surveys
the impact of torrential rain and floods
in several parts.
According to the Gujarat Chamber of
Commerce and Industry (GCCI), heavy
rainfall leading to flooding and disruption
of goods movement and factory production
have been severe in southern, western and
parts of central and northern Gujarat.
Heavy rains have already caused 207
major dams and reservoirs — including the
Sardar Sarovar Dam — in the state to reach not only due to rains damaging roads but Ahmedabad and Bharuch have seen a
over 50 per cent capacity, according to a also because more than 5,000 trucks were decline in production. “Gujarat Mineral
state government communiqué. Of these, stuck on highways in parts of Maharashtra Development Corporation, which is the
42 dams and reservoirs are either 100 per and south Gujarat. “The turnaround of major supplier of lignite, has not been able
cent full or overflowing, leading to the state trucks has been disturbed with inter-state to dispatch due to heavy rains last week
government issuing high alerts. movement between Maharashtra and (July 11-17) thereby impacting production
On July 10 alone, several parts of Gujarat getting delayed by an average of of units across sectors,” Vakharia added.
Ahmedabad were inundated with the city three to four days due to rains and even The GCCI has written to the Insurance
receiving a record 115 mm rainfall in just landslides in crucial places like Dharampur Regulatory and Development Authority of
three hours. The Indian Meteorological and Saputara in Gujarat through which the India to direct general insurance companies
Department (IMD) had forecast- north-south corridor passes. The to release at least 75 per cent of claim dis-
ed heavy to very heavy rainfall Transporters in freight transport in Gujarat alone bursals immediately and the rest after
in Ahmedabad and other parts the state, too, could be facing losses of over paperwork and review is over. “Moreover,
of Gujarat for the last week. have estimated ~500 crore,” said Dave. given the extent of the impact of rains, we
Already, Gujarat has received a loss of more Several micro, small and have also requested for more surveyors to
over 50 per cent of the average than ~500 crore medium enterprises (MSMEs) be deployed for quicker assessment of loss-
seasonal rainfall of 850 mm. during the July have also been impacted by a es for swift claim disbursals,” Patwari added.
“The industry had earlier esti- 11-16 week lack of fuel such as lignite. “With However, according to S G Savalia, prin-
mated losses to the tune of ~1,000- flooding in Kutch, there has been cipal and dean-agriculture of Junagadh
1,200 crore in Ahmedabad alone. With hardly any loading of lignite on trucks and Agricultural University, a detailed survey
southern Gujarat, especially industrial cen- dispatches, and connectivity between of the state government is awaited for
tres like Surat, Vapi and Navsari, continuing Kutch and the rest of Gujarat has been ham- assessing the impact on crops. “Wherever
to be battered by heavy rains and flooding, pered. Overall, the Mumbai-Ahmedabad pre-monsoon sowing has taken place, espe-
the losses could be even higher at ~2,000 route sees on average 11,000 trucks a day cially in crops like groundnut, and where
crore. In addition, western and northwestern but 50-60 per cent of movement was ham- there hasn’t been any flood-like situation,
Saurashtra regions, too, may have seen sim- pered last week. With rainfall subsiding the rains have been largely beneficial.
ilar impact,” said Pathik Patwari, president now over the weekend, things are getting Nonetheless, the real impact will only be
of GCCI, estimating the total losses at a back to normalcy since Monday,” he added. known when the government completes
cumulative ~5,000-5,200 crore. According to Jitu Vakharia, president its survey,” Savalia added.
Similarly, transporters in the state, too, of South Gujarat Textile Processors Prime Minister Narendra Modi has,
have estimated a loss of more than ~500 Association, with lignite mining taking a meanwhile, assured assistance to Gujarat,
crore during the July 11-16 week. According hit due to heavy rainfall this year, more while Chief Minister Bhupendra Patel car-
to Akhil Gujarat Truck Transport than 1,000 textile, chemical and other units ried out an aerial survey of Chhota Udepur
Association president Mukesh Dave, this is that use the fuel across cities like Surat, and Narmada districts recently.
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MUMBAI | WEDNESDAY, 20 JULY 2022 1