OPINION, P8 M&M, P11 FRAUD AT LISTED FIRMS Congress diatribe of no use, it needs an economic plan India needs flexible labour laws to grow, what is on offer is a very limited reform DATA BREACH SCANDAL Tyagi-led Sebi to crack down on erring auditors, valuers EDITORIAL INTERNATIONAL, P16 WhatsApp co-founder Brian Acton says it’s time to delete Facebook MUMBAI, THURSDAY, MARCH 22, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 312, 38 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 33,136.18 ▲ 139.42 NIFTY: 10,155.25 ▲ 30.90 NIKKEI 225: 21,380.97 ▼ 99.93 HANG SENG: 31,414.52 ▼ 135.41 `/$: 65.21 ▼ 0.01 `/€: 80.04 ▲ 0.19 BRENT: $68.06 ▲ $0.64 GOLD: `30,300.00 ▼ `49.00 IN THE NEWS US anti-dumping duty on India, China steel flanges THE US has decided to slap anti-dumping duty on stainless steel flanges imported from India and China after it found in its preliminary probe that both the countries provided subsidies to the exporters, reports PTI. US President Donald Trump had earlier this month imposed heavy tariffs on imported steel and aluminium, which he said were necessary to boost the US industry suffering from "unfair" business practices, a move that has sparked fears of a global trade war. RCom gets bondholders' nod for asset sale DEBT-LADEN Reliance Communications (RCom) on Wednesday said its bondholders have approved "with overwhelming majority" the sale of its certain assets to Reliance Jio Infocomm as also monetisation of other real estate properties, reports PTI. In a statement, RCom said that the bondholders also approved the release of their security on the company's assets and to accept part prepayment of their outstanding bonds. RACE BEGINS AFRESH Essar Steel lenders call for fresh bids Decision comes after bankers rejected bids by both ArcelorMittal and Numetal since they didn’t meet IBC criteria ■ CoC finds ArcelorMittal ■ ArcelorMittal, Numetal ■ Only those who submitted EOIs in earlier round can participate ■ Numetal in parallel move and Numetal bids ineligible ESSAR STEEL, WHICH had received resolution bids from ArcelorMittal and the VTB Bank-led Numetal, will soon see a second round of bidding as both the bids have been disqualified by Essar Steel’s committee of creditors (CoC) at a meeting onWednesday, bankers present in the meeting told FE. They added that only the resolution applicants who had initiallysubmittedexpressions ofinterest(EOIs)forEssarSteel would be eligible to bid in the second round. While a time frame for the secondroundofbiddinghasnot yet been finalised, it is likely to happensoon,peopleinvolvedin the decision-making said. “In today’s CoC meeting, it was decided to disqualify both the bids to end the impasse. There will be a fresh round of bidding soon,” a source said. The CoC included,among others,representatives from State Bank of India, Bank of Baroda and Bank of India. The resolution professional (RP) for Essar Steel Satish Kumar Gupta, his advisers and the CoC had been unable to reach a decision on the bids received from ArcelorMittal and Numetal. NERVES OF STEEL SHOBHANA SUBRAMANIAN New Delhi, March 21 CARICATURE: ROHNIT PHORE But he loved the subject in KBN College in Vijayawada where, not surprisingly, he was a rank holder. He still has a love for numbers as both his daughters. A self-confessed workaholic, much to his wife’s annoyance, Rao says he learnt the importance of hard work Cabinet nod for Ayushman Bharat FE BUREAU New Delhi, March 21 Consultancy firm Grant Thornton and law firm Cyril Amarchand Mangaldas were the two advisers to the RP on this matter.The bids were disqualified in the context of the amendment to the Insolvency and Bankruptcy Code (IBC), which categorically states that promoters of defaulting companies cannot bid unless they repay all the outstanding loans before submitting their resolution plan. THE CABINETON Wednesday approved the government’s ambitious Ayushman Bharat — National Health Protection Mission, a part of which promises an annual insurance coverage of `5 lakh for 10 crore families. “The target beneficiaries of the proposed schemewill be more than 10 crore families belonging to poor and vulnerable population based on socio-economic caste census database,”the government said in a tweet after the Cabinet meeting. Italsoclearedaproposalfor the continuation of the National Health Mission, with effect from April 1, 2017 through March 31,2020,with a budgetary support of `85,217 crore as the central share over the period. “AB-NHPM will subsume the ongoing centrally sponsored schemes — Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS),”an official statement read. Continued on Page 2 Continued on Page 2 applies to NCLT for upholding its eligibility SHAMIK PAUL Mumbai, March 21 CFO OF THE YEAR: SESHAGIRI RAO THE SECRET OF his slim and trim physique is a regular regimenofyogaandabriskmorning walk.No matterwhich city he wakes up in, Seshagiri Rao makessurehedoesn’tmissout on the exercise.As ayoung boy, Rao cycled five kilometres to school every day from his village Gudem, about 20 km away from Vijayawada, and he knows the secret to an agile mind is an agile body. But there’s another reason why Rao can’t afford miss out on the exercise.He has a sweet tooth and while he misses his mother’s ‘arisilu’, a Sankranti speciality, he’s happy with gulab jamuns and ice cream. Given the high levels of stress in the corporate world, it’s amazing how the group CFO and joint managing director,JSWSteel — FE’s CFO of the Year — never loses his cool, never raises his voice. But that is Rao foryou,always soft-spoken,always calm in manyways like Geetanjali Pandit’s “Buddha atWork”; that’s among the many books he devours on management philosophy. WhileRaotodayisfetedasa finance professional, what led him to pursue commerce was actually the not-so-good financial situation of his family.“My elder brother studied commerce so I didn’t need to buy the books,” Rao recalls. working to address eligibility issues ● MODICARE and other values from his father. He never forgets what hebelievesisthemostvaluable lesson his father taught him: Don’t do anything that hurts your self-esteem. Raowould have remained a banker, like his elder brother who retired from State Bank of India,but decided to move out of Andhra Bank because he didn’t like being transferred every three years. And since along the way he had acquired degrees in cost accountancy and also become a company secretary, he decided to move back to the corporate world at theEssarGroup.Tenyearslater he had joined the Jindals.Over the two decades at JSW Steel, Rao has negotiated many a steel cycle,always making sure the firm’s finances were in good shape. The iron ore crisis post the ban on mining in Karnataka was a terrible time for JSW Steel. With a shortage in the supplies of ore, the Vijaynagar plant was operating at just 30% capacity. Ore prices shot up even as the top line was in trouble but Rao managed to keepthecompanyafloat.Itwas as bad when steel was being dumped into India by China andJapanbutJSWSteelweathered the storm. There’s more to managing a company’s finances than book-keeping, he says, pointing out that it’s the risks that need to be closelywatched. At59,heisnohurrytohang up his boots but does have a few things in mind that he would like to do post retirement.The first is a sort of a second honeymoon with wife Shobhabecausehesayshehasn’t travelled too much except onwork,andwould like tovisit cities both in Europe and the US. And to spend a little more time with his daughters. QuickPicks ‘FM has met BBB chief several times’ Primary dealers for Bank sector could turn short-dated securities around in FY20: S&P FINANCE MINISTER Arun Jaitley is learnt to have met Banks Board Bureau (BBB) chief Vinod Rai on a number of occasions, the last one being earlier this month, and discussed banking reforms, official sources told FE, seeking to refute charges that the ministry didn't actively engage the BBB. ■ P2 IN A meeting with finance ministry officials before the finalisation of the government's borrowing calendar for the next fiscal, primary dealers are believed to have suggested issuing of more short-dated securities and floating rate bonds, in order to increase demand for government securities, sources told Bhavik Nair in Mumbai. ■ P10 MAKING A case for more concrete steps to strengthen the internal control system in PSBs, S&P Global Ratings on Wednesday said the banking sector could witness a turnaround in FY20, reports PTI. It added that the `13,000-crore fraud at PNB highlights the inherent weaknesses in the sector’s governance and transparency standards. ■ P10 BID FOR BINANI UltraTech ups the ante Birla company moves NCLT seeking CoC meeting to be declared ‘illegal and void’, says its bid is the highest MITHUN DASGUPTA & SHAYAN GHOSH Kolkata/Mumbai, March 21 ADITYA BIRLA GROUP-LED UltraTech Cement onWednesday sought the declaration of Binani Cement’s committee of creditors (CoC) meeting held on March 14 as “illegal and void”. It also asked for its offer “to be considered by the CoC and the applicant (UltraTech) be declared the highest successful bidder”. ILLUSTRATION: ROHNIT PHORE Inasupplementaryaffidavit filed before the Kolkata bench of the National Company Law Tribunal (NCLT), the company said that it was not given any notice to the CoC meeting held on March 14. “No notice was given to the applicant and they werenotcalledforthemeeting. It is submitted that despite repeated requests made by the applicanttoconsideritsrevised offer,theCoCand/orresolution professional have failed to consider and evaluate the revised offermadebytheapplicant,”its affidavit said. It added that a statement was made by the counsel appearing for the resolution professional that revised offer made by the applicant was considered in the meeting of March 14. Continued on Page 2 ● CHANGES TO IBC Homebuyers to get financial creditor tag BANIKINKAR PATTANAYAK New Delhi, March 21 WORRIED HOMEBUYERS WAITING forthe possession of their flats could soon be granted the status of financial creditors like banks and accorded similar benefits, in case their realty firm goes through insolvency proceedings,sources told FE. A14-memberpanelsetupto reviewtheInsolvencyandBankruptcyCode(IBC)willlikelyrec- WHAT IT MEANS FOR HOMEBUYERS ■ They will be part of CoC that approves the resolution plan ■ Their voting rights to be in sync with advance payments ■ They will be third in preference order to get liquidation proceeds ■ But they will also have to take haircuts ommend such an amendment totheIBC.Thismeans,incaseof liquidation of a stressed real estatefirm,thehomebuyerswill be third in the preference order togetproceeds—aftertheclearance of the cost of resolution andworkers’dues. Anysuchmovewillenshrine therightsofhomebuyersinthe IBC — which, originally, didn’t explicitlyrecognisesuchacategoryof creditors. Continued on Page 2
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