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Industrial production rises 3.7 per cent in June 2023-Telangana Today

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India’s industrial production rose by 3.7 per cent in June, according to the official data released on Friday

Published Date – 08:00 PM, Fri – 11 August 23


Industrial production rises 3.7 per cent in June 2023



New Delhi: India’s industrial production rose by 3.7 per cent in June, according to the official data released on Friday.

Factory output measured in terms of the Index of Industrial Production (IIP) grew by 12.6 per cent in June 2022.

The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output increased by 3.1 per cent in June 2023.

Mining output rose 7.6 per cent during the month under review. Power output grew 4.2 per cent in June 2023.

The IIP grew by 4.5 per cent in April-June 2023 compared to 12.9 per cent in the same quarter in 2022.

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RBI Governor pitches for global debt data sharing platform-Telangana Today

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Reserve Bank of India Governor Shaktikanta Das on Friday pitched for a global debt data-sharing platform as part of the solution

Published Date – 08:35 PM, Fri – 11 August 23


RBI Governor pitches for global debt data sharing platform

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Mumbai: Stating that high and unsustainable debt levels have severely constrained the fiscal capacity of many countries, Reserve Bank of India Governor Shaktikanta Das on Friday pitched for a global debt data-sharing platform as part of the solution.

At a seminar held under the G20 Finance Track National Event titled ‘Global Economy: Challenges, Opportunities and Way Forward’ organised by the Ministry of Finance and the Reserve Bank of India, Das, while explaining the benefits of global public goods said, risk sharing should be an important design element in fostering private financing for global public goods.

In this endeavour, Multilateral Development Banks (MDBs) could catalyse private sector investment through risk-sharing mechanisms, Das said.

High and unsustainable debt levels have severely constrained many countries, limiting their fiscal capacity, he said, giving an example how an absence of seamless access to Covid-19 vaccines hurt many countries.

He made three specific suggestions, one of them being the creation of a global debt data-sharing platform.

First, it is essential that Debt Sustainability Analysis (DSA) for countries is realistic on growth and fiscal projections are fully founded on accurate and comprehensive debt data. A global debt data-sharing platform can help in this regard. Establishing such a platform could be very challenging and may take several years. Among others, he suggested consideration for a multilateral debt relief program providing targeted assistance to low-income countries with high debt levels.

In his third suggestion, taking into consideration the crucial role of the International Monetary Fund (IMF) and the World Bank in addressing global debt vulnerabilities, he called for more support for countries in debt distress.

“These institutions are at the centre of the international monetary and financial system. Hence it is incumbent upon them to do more for countries in debt distress. At present, the IMF’s precautionary programmes such as the Precautionary Lending Line are available for countries with sound macro-fundamentals; however, there is little reason for countries with strong macro-fundamentals to seek Precautionary Lines.” Summing up all his observations, he said the key point he was trying to stress is that corrective measures, including financing, should be put in place on a timely, non-stigmatised and more open access basis.

As part of his concluding remarks, he said it is important to focus on people-centric transformative changes taking place in member countries like the UPI and the financial inclusion initiatives in India.

Wider adoption of such models would make the world a better place for everyone, he said.

UPI payments system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.

Unified Payments Interface (UPI) is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.

So far, Sri Lanka, France, UAE, and Singapore had partnered with India on emerging fintech and payment solutions.
A key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only, but other countries, too, benefit from it.

Business

Oil prices up in July by 16 per cent; highest since January 2022-Telangana Today

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The oil market witnessed a significant surge in prices by 16 per cent in July, the highest since January 2022

Published Date – 08:55 PM, Fri – 11 August 23


Oil prices up in July by 16 per cent; highest since January 2022

Photo: IANS

New Delhi: The oil market witnessed a significant surge in prices by 16 per cent in July, the highest since January 2022, as per a report by Motilal Oswal Asset Management Company.

Silver and gold prices also rose by 8 per cent and 3 per cent, respectively. The crypto market was an exception to the green wave, as Bitcoin & Ethereum fell by 4 per cent, followed by the collapse of FTX, one of the largest global cryptocurrency exchanges.

Both emerging and developed markets delivered positive performance, with South Africa emerging as a standout performer, surging by an impressive 13 per cent. Within the US market, the NASDAQ 100 and S&P 500 indices recorded gains of 4 per cent & 3 per cent, respectively.

IT sector dominated S&P 500’s gains, the report said. Nifty Smallcap 250 outperformed all major indexes clocked gain of 7.69 per cent, followed by Nifty Midcap 150 at 5.51 per cent. Realty, Metals & Energy led the charge, rising 9 per cent each. On the flip side, IT lagged with a modest 1 per cent rise, the report said.

All sectors, excluding the Diversified sector, contributed positively to the NIFTY 500 returns, with the financial services sector making the most substantial impact.

Business

NCLAT stays insolvency against Coffee Day Global till the next hearing on Sep 20-Telangana Today

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The NCLAT order came over a petition filed by Malavika Hegde, the suspended Director of CDGL and wife of late VG Siddhartha

Published Date – 09:07 PM, Fri – 11 August 23


NCLAT stays insolvency against Coffee Day Global till the next hearing on Sep 20

The NCLAT order came over a petition filed by Malavika Hegde, the suspended Director of CDGL and wife of late VG Siddhartha

New Delhi: In a relief to Coffee Day Global Ltd (CDGL), which owns and operates popular Cafe Coffee Day chain, the National Company Law Appellate Tribunal (NCLAT) on Friday stayed an order of NCLT that directed initiation of insolvency proceedings against the company.

Passing an interim order, a two-member tribunal of the Chennai bench of the appellate tribunal, issued notices to the Interim Resolution professional and its financial creditor IndusInd Bank and stayed the operations of the order passed by the Bengaluru Bench of the National Company Law Tribunal (NCLT).

The NCLAT said it has “found that there are arguable points involved in this appeal, therefore, we issue a formal notice to the Respondents who are already on caveat, enabling it to file its reply.” It has directed IRP and IndusInd Bank to file a reply within two weeks up to August 25, 2023, and a rejoinder, if any, be filed by CDGL within two weeks and directed to list the matter for hearing on September 20, 2023.

“In the meanwhile, till the next date of hearing, operation of the impugned order shall remain stayed,” said the bench comprising Justice Rakesh Kumar Jain and Shreehsa Merla.

The NCLAT order came over a petition filed by Malavika Hegde, the suspended Director of CDGL and wife of late VG Siddhartha.

Earlier on July 20, the Bengaluru bench of the NCLT passed an order over a plea filed by IndusInd Bank, a financial creditor of the company, claiming dues of Rs 94 crore.

The NCLT also appointed Shailendra Ajmera as the interim resolution professional after suspending the board.
During the proceedings, the counsel for Hegde disputed the date of default, which has been preponed.

It was argued that the `date of default’ in `Form– I’, `Part–IV’ is specifically mentioned as April 30, 2020, and even in the rejoinder filed by the IndusInd Bank is mentioned that the `date of default’ has been backdated from June 30, 2022, to April 30, 2022, as June 30, 2022 is the date of NPA.

It was argued that the date of default has never been February 28, 2020, but it has been brought on record during the pendency of the Application before the NCLT and has been relied upon by the Tribunal.

However, the private sector lender submitted that the `date of default’ dated February 28, 2020, has been uploaded on `Form–D’ in terms of an Order of the NCLT dated April 3, 2023. It submitted that February 28, 2020, is uploaded in the Information Utility i.e., NeSL after giving six opportunities to the CDGL to respond.

CDGL had requested a short-term loan of Rs 115 crore in February 2019.

In 2022-23, CDGL’s consolidated total income was Rs 920.41 crore. It had reported a loss of Rs 67.77 crore in the year.
As per the annual report of its parent firm Coffee Day Enterprises Ltd for FY22, CDGL owns 495 cafes in 158 cities and 285 CCD Value Express kiosks. There are 38,810 vending machines that dispense coffee in corporate workplaces and hotels under the brand.

Coffee Day Enterprises is in trouble after the death of founder Chairman V G Siddhartha in July 2019. It is paring its debts through asset resolutions and has significantly scaled it down from the time the trouble started.

Business

Rupee falls 16 paise to 82.82 against US dollar amid losses in local equities-Telangana Today

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The rupee depreciated by 16 paise to settle at 82.82 against the US dollar on Friday amid weak sentiment in the equity markets

Published Date – 10:15 PM, Fri – 11 August 23


Rupee falls 16 paise to 82.82 against US dollar amid losses in local equities



Mumbai: The rupee depreciated by 16 paise to settle at 82.82 against the US dollar on Friday amid weak sentiment in the equity markets and a strong dollar against major rivals overseas.

Foreign fund inflows and softening crude prices, however, supported the Indian currency even as investors were awaiting India’s industrial output number, to be released later in the day, said analysts.

At the interbank foreign exchange market, the local unit opened at 82.75 against the US dollar. It touched the peak of 82.73 and hit the lowest level of 82.87 during intra-day trade before settling at 82.82 against the greenback, 16 paise lower from its previous close.

“Indian rupee depreciated on a positive US dollar and weak domestic markets. However, FII inflows and overnight decline in crude oil prices cushioned the downside,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

On Thursday, the rupee rebounded 19 paise to close at 82.66 against the US dollar after the RBI asked banks to set aside a larger part of incremental deposits under the cash reserve ratio (CRR) as part of measures to take out excess liquidity from the banking system.

The Reserve Bank of India in its bi-monthly monetary policy review also decided to keep key interest rate unchanged, but hinted at tighter policy if food prices drive inflation higher.

In the overseas currency market, the dollar strengthened after US consumer price inflation showed moderation in July, raising hopes that the US Federal Reserve would pause rate hike.

Choudhary said the rupee is expected to trade with a “negative bias on risk aversion in global markets and elevated crude oil prices. However, fresh inflows by FIIs may support Rupee at lower levels”.

“Traders may take cues from India’s industrial production and US PPI and consumer sentiment data. We expect the USDINR spot to trade in the range of 82.40 to 83.30 in the near term,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.11 per cent to 102.64.

Global oil benchmark Brent crude was trading 0.19 per cent lower at USD 86.24 per barrel.

On the domestic equity market front, the 30-share BSE Sensex closed 365.53 points or 0.56 per cent lower at 65,322.65. The broader NSE Nifty fell 114.80 points or 0.59 per cent to 19,428.30.

Foreign Institutional Investors (FIIs) turned net sellers in the equity markets on Friday as they offloaded shares worth Rs 3,073.28 crore, according to exchange data.

Business

India’s forex reserves drop USD 2.42 bn to USD 601.45 bn-Telangana Today

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India’s forex reserves dropped for the third consecutive week, declining by USD 2.417 billion to USD 601.453 billion as of August 4

Published Date – 11:15 PM, Fri – 11 August 23


India’s forex reserves drop USD 2.42 bn to USD 601.45 bn



Mumbai: India’s forex reserves dropped for the third consecutive week, declining by USD 2.417 billion to USD 601.453 billion as of August 4, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had dropped by USD 3.165 billion to USD 603.87 billion.

For the week ended August 4, the foreign currency assets, a major component of the reserves, decreased by USD 1.937 billion to USD 533.40 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were down by USD 224 million to USD 44.68 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by USD 171 million to USD 18.274 billion, the apex bank said.

The country’s reserve position with the IMF was down by USD 86 million to USD 5.099 billion in the reporting week, the apex bank data showed.

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World Bank mulling local currency lending in countries like India: Official-Telangana Today

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World Bank is mulling local currency lending in countries like India to help borrowers save on costs, a senior official said on Friday

Published Date – 06:40 AM, Sat – 12 August 23


World Bank mulling local currency lending in countries like India: Official

World Bank is mulling local currency lending in countries like India to help borrowers save on costs, a senior official said on Friday

Mumbai: The World Bank is mulling local currency lending in countries like India to help borrowers save on costs, a senior official said on Friday.

“How do we do local currency lending for a country like India is also something we are trying to think of at a price which is advantageous to this country,” Anshula Kant, the Managing Director and Chief Financial Officer of the World Bank, said.

Speaking at the event on global economy organised by the Ministry of Finance and the Reserve Bank of India (RBI) as part of India’s G-20 presidency, Kant said the Indian government has a “huge advantage” in local currency borrowing as compared to the World Bank, even though the Washington DC-based multilateral bank is rated AAA.

In some countries like the ones in Africa, which do not possess market infrastructure from where the bank can borrow, the bank may not adopt the local currency lending strategy, Kant said.

At the event, Chief Economic Advisor to the Government of India V Anantha Nageswaran said global inflationary pressures are easing more than expected.

He said persistence of core inflation globally continues to be a cause of concern and added that there is a need for coherence between fiscal and monetary policies.

Ashima Goyal, an academic who is also an external member on the monetary policy committee of RBI, said it is important for the monetary policy to address the financial stability needs.

Business

Toyota recalls around 168K vehicles over fire risk-Telangana Today

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Japanese automotive giant Toyota has recalled around 1,68,000 recently manufactured vehicles in the US over a potential fire risk

Published Date – 07:20 PM, Sat – 12 August 23


Toyota recalls around 168K vehicles over fire risk



San Francisco: Japanese automotive giant Toyota has recalled around 1,68,000 recently manufactured vehicles in the US over a potential fire risk. The recall involves certain 2022 and 2023 model-year Toyota Tundra and Tundra Hybrid vehicles.

“The subject vehicles are equipped with a plastic fuel tube which could move and rub against a brake line and develop a fuel leak. A fuel leak in the presence of an ignition source could increase the risk of fire,” Toyota said in a recall notice.

“For all involved vehicles, Toyota dealers will replace the fuel tube with an improved part and additional clamps at no cost to customers,” it added. Moreover, the automaker said that it is “currently preparing the remedy parts for this recall”.

Customers will receive free installation of protective materials and a clamp on the fuel tube as a temporary measure until the final remedy parts are available. Toyota said that it will notify affected owners about this issue by early October 2023.

Last year, eight automakers, including Toyota voluntarily recalled more than 1,00,000 vehicles to fix faulty components. The eight firms — Toyota, Kia, Ford Sales and Service Korea, Volkswagen Group Korea, Jaguar Land Rover Korea, BMW Korea, Dasan Heavy Industries Co and Motostar Korea — recalled a total of 1,02,169 units of 52 different models, the Ministry of Land, Infrastructure and Transport said in a statement.

The problems that prompted the recall include a faulty assistant heating system in Kia’s Sorento SUV, a faulty transmission system in Ford’s Fusion sedan and software problems in the Audi A6 Premium 45 TFSI quattro sedan imported by Volkswagen Group Korea.

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Tata Motors launches Punch iCNG car in Hyderabad-Telangana Today

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The new car is powered by a 1.2 liter Revotron iCNG engine, has voice assisted electric sunroof and more boot space. One kg of CNG gives a mileage of 26 km and the ex-showroom price is Rs.7,09,900, a press release said.

Updated On – 08:03 PM, Sat – 12 August 23


Tata Motors launches Punch iCNG car in Hyderabad

Tata Punch Car

Hyderabad: Tata Motors launched its twin-cylinder Punch iCNG car at Venkataramana Motors showroom in Kushaiguda here on Saturday. The new Tata Punch iCNG car was launched by Kushaiguda ACP Venkat Reddy, Tata Motors Regional Manager Gopi Gopu and VVC Group Managing Director VV Rajendraprasad.

The new car is powered by a 1.2 liter Revotron iCNG engine, has voice assisted electric sunroof and more boot space. One kg of CNG gives a mileage of 26 km and the ex-showroom price is Rs.7,09,900, a press release said.

Rajendraprasad said Venkataramana Motors was running with good Tata car sales. Venkataramana Motors CEO Mahender, General Manager Ravinder, showroom staff and customers participated in the event.

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Deloitte resigns as auditor of Adani firm-Telangana Today

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Deloitte has been the auditor of APSEZ since 2017. In July 2022, it was given another five-year term.

Updated On – 09:31 PM, Sat – 12 August 23


Deloitte resigns as auditor of Adani firm



New Delhi: Deloitte has resigned as auditor of the Adani group’s port company, with the firm run by billionaire Gautam Adani saying the auditor wanted a wider remit over other firms in the conglomerate following the report of a US short seller.

The resignation comes weeks after Deloitte raised concern over certain transactions flagged in the report of Hindenburg Research.

In a statement, Adani Ports & Special Economic Zone (APSEZ) confirmed the resignation and appointment of M S K A & Associates as the new auditor.

Deloitte has been the auditor of APSEZ since 2017. In July 2022, it was given another five-year term.

“In Deloitte’s recent meeting with APSEZ management and its Audit Committee, Deloitte indicated a lack of a wider audit role as auditors of other listed Adani portfolio companies. The Audit Committee was of the view that the grounds advanced by Deloitte for resignation as
Statutory Auditor were not convincing or sufficient to warrant such a move,” it said.

APSEZ conveyed that it was not within the remit of the firm and its Board to recommend group-wide appointments as other listed Adani portfolio companies are completely independent, with separate boards, executive teams and minority shareholders.

“Following this, Deloitte was not willing to continue as APSEZ’s statutory auditor and, therefore, it was agreed to amicably end the client-auditor contractual relationship between APSEZ and Deloitte,” it said.

Deloitte Haskins & Sells LLP in May flagged three transactions, including recoveries from a contractor identified in the Hindenburg report, in issuing a qualified opinion on the accounts of APSEZ.

In the auditors’ report on the audit of the fourth quarter and 2022-23 financials, Deloitte highlighted transactions with three entities, which the company said were unrelated parties.

Deloitte however said it could not attest to the company’s statement as no independent external examination has been done to prove the claims.

Following this, it wanted a wider conglomerate-wide audit which the Adani group firm refused.

Hindenburg Research in its January 24 report that levelled allegations of fraud, stock manipulation, and money laundering against the Adani group, had also flagged inadequate disclosures of related party transactions. Adani group has denied all allegations.

Deloitte had stated that the Adani group did not consider it necessary to have an independent external examination of these allegations because of their evaluation and the ongoing investigation by the Securities and Exchange Board of India (SEBI).

“The evaluation performed by the Group does not constitute sufficient appropriate audit evidence for the purposes of our audit,” Deloitte had said in notes to APSEZ’s financial statement.

In the absence of the independent external examination and the pending completion of investigation by SEBI, the auditor had said it cannot comment if the company was fully compliant with the law and if the transactions flagged may result in possible adjustments and/or disclosures in the financial statement in respect of related parties.

The six-member expert panel appointed by the Supreme Court in May found no regulatory failure or signs of price manipulation in the Adani Group stocks in its interim report.

The transactions flagged by Deloitte included engineering, procurement and construction (PEC) purchase contracts with a subsidiary of a party identified in the Hindenburg report.

Also, the group “re-negotiated the terms of sale of its container terminal under construction in Myanmar” to Anguilla-incorporated Solar Energy Ltd. The sale consideration was revised from Rs 2,015 crore to Rs 246.51 crore and an impairment charge was taken. The group told the auditor these are not related parties.

APSEZ in a statement on Saturday said, “In response to a query by the Audit Committee, Deloitte confirmed that they have received all the

APSEZ information from the management of the company.

“The same has been confirmed by Deloitte in their resignation letter dated August 12, 2023, to the company,” it added.

Without disclosing the contents of the resignation letter, APSEZ said, “The ‘other matters’ highlighted in the auditor’s resignation are adequately disclosed and addressed in our FY23 financial statements. We are fully confident that these matters will be appropriately resolved in our September’23 filing.”