OPINION, P8 MONEY & MARKETS, P11 FUNDRAISING EDITORIAL Adopting digital/tech can help improve learning outcomes Stepping up defence procurement can give a boost to FDI in manufacturing INTERNATIONAL, P14 POSITIVE OUTLOOK Reliance Jio in talks with three Japanese banks for $500 million Tesla to be profitable in Q3, Q4; no need to raise money: Musk NEW DELHI, SATURDAY, APRIL 14, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 37, 32 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 34,192.65 ▲ 91.52 NIFTY: 10,480.60 ▲ 21.95 NIKKEI 225: 21,778.74 ▲ 118.46 HANG SENG: 30,808.38 ▼ 22.90 `/$: 65.22 ▲ 0.04 `/€: 80.34 ▲ 0.24 BRENT: $72.37 ▲ $0.35 GOLD: `30,874 ▼ `139 MALAYSIA'S IHH HEALTHCARE has offered `160 apiece to acquire Fortis Healthcare shares, reports PTI. The offer is higher than Manipal Health Enterprises' `155 per unit by valuing the company at `6,061 crore. ■ Binani Cement resolution hearing in NCLT Kolkata on April 16, 2018 ■ Binani Industries appealed at the SC to terminate resolution process under IBC questionedBIL'surgencyinthe matter when the National Company Law Appellate Tribunal (NCLAT) was scheduled to hear the matter on April 19. “What is going to happen till then... Why should we interfere? UltraTech, the second highestbidderwhowasoutbid, has put you up.Now the owner is taking a loan from UltraTech to repay the lenders so that it can come back,”the judge said. Senior counsel CA Sundaramcontendedthecodebars promoters and the company acting in consort with it from making any offer.“Here is the promoter who has defaulted, windinguppetitionagainstitis alreadypendingintheCalcutta High Court and has siphoned off `2,400 crore. Now he has broughtafailedbidder.Theyare barred from giving any resolution plan. I have gone through thewhole process and myresolution plan has been approved bythecreditors,”hesaid.Senior counsel NK Kaul,appearing for Dalmia Bharat, argued that it was an “unholy alliance betweenapromoterandafailed bidder... They can’t introduce settlement in this manner.” In early April, the NCLAT had instructed the NCLTto follow the IBC guidelines while resolving the Binani Cement case.OnMarch16,theCoChad approved the resolution plan submitted by Dalmia Bharatcontrolled Rajputana Properties.Alargefinancialcreditorto Binani Cement said, on condition of anonymity, the out-oftribunalofferhadbeenconsideredbecausetheKolkatabench of the NCLT had asked the CoC to do so.“If the tribunal gives the CoC directions, we will meet,”he said. INFOSYS, THE COUNTRY'S second largest IT services exporter, registered a 28.2% sequential decline in net profit for the three months ended March 2018 as the previous quarter received a one-time income-tax reversal boost of $225 million, but on an adjusted basis the bottom line was almost flat.The net profit performance of Infosys was in line with market expectations at $571 million for the fourth quarter of FY18 compared with $796 million in the three-month period ended 1,180 18,083 FE BUREAU Bengaluru, April 13 1.6 April 13 1,190 OPM (%) 1,169 1,174.50 1,170 24.3 3,690 1,160 24.8 1,150 1,140 28.1 « claims worth `6,469.36 crore from financial creditors of Binani Cement Net profit (` cr) 5,129 ■ NCLTadmitted Infosys (Intra-day on BSE, `) December 2017. However, Infosys provided awarning in terms of the operating profit margins (OPM) for FY19 with a guidance range of 22-24%comparedto23-25% for the previous fiscal. The companyattributed this lower margin range to its digital push and higher investments forgrowth.The ITmajorended the fourth quarter with an Prev. close: 1,162.25 Open Close OPM of 24.8%, up from 24.3% in the sequential threemonth period. The revenue forthe quarter came in at $2.80 billion which was a sequential growth of 1.8%, in line with market expectations.The quarter witnessed a volume growth of 1.2% while price realisations were mostly flat. However,the company pro- Trade deficit at 5-year high FE BUREAU FY18 exports cross $300-bn mark Goods exports rose 9.8% in FY18 from a year earlier but the trade deficit widened more than four times faster. Exports in March, however, dropped a tad, although non-bullion and non-oil exports increased 4.6%. Services exports fell 3.8% in February, while such imports grew 3.1%. 50 45.3 40 -10 March 2018 ● PRIVACY ISSUES Data portability likely soon: Trai’s Sharma Colonising galaxy is hard.Why not send bacteria instead? A number of scientists reckon a more modest approach towards spreading life to other star systems might be possible — send bacteria to take hold, jump-start evolution. ■ Science & Tech, P13 FE BUREAU New Delhi, April 13 QuickPicks JLR to cut output and jobs due to Brexit, diesel slump BRITAIN'S BIGGEST carmaker Jaguar Land Rover will cut around 1,000 jobs and production at two of its English factories due to a fall in sales caused by uncertainty around Brexit and confusion over diesel policy, a source said, reports Reuters. Output will be cut at its central English Solihull and Castle Bromwich plants, affecting some 1,000 agency workers, the source said. A JLR spokesman declined to comment on the number of jobs that would be lost but the firm said it would be making changes to its output plans. PAGE 7 HDFC Bank plans to raise `50,000 cr via bonds in FY19 HDFC BANK said on Friday it plans to raise `50,000 crore through bonds in the next 12 months to fund business expansion, reports PTI. The decision to this effect will be taken in the board meeting on April 21, the private lender bank said in a regulatory filing. The funds will be raised by issuing perpetual debt instruments (part of additional Tier I capital), Tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total of `50,000 crore in next 12 months through private placement, it said. “The bank shall appropriately inform the exchanges after the conclusion of the board meeting," the lender said. RIL to buy 73% stake in Embibe, plans to invest $180 m in 3 years RELIANCE INDUSTRIES (RIL) said on Friday it has entered into agreements to acquire close to 73% stake in education technology provider Indiavidual Learning Private (Embibe) and will invest $180 million into the company over the next three years, reports PTI. RIL said this investment in education technology is in line with its commitment to invest and grow the education sector in India, and digital and technology businesses. The transaction is expected to be completed in two months. PAGE 6 Protecting the weird A Mary River Turtle is seen in this 2008 photo. It is 30th on a new list of endangered reptiles from the Zoological Society of London CHRIS VAN WYK/VIA REUTERS DEPLETING RESOURCE Nabard’s water atlas of India to aid crop planning ready PRABHUDATTA MISHRA New Delhi, April 13 INDIAWILLSOONhaveawater atlas, thanks to an initiative by National Bank for Agriculture and Rural Development (Nabard).The facility will help thecountryimprovecropplanningforjudicioususeofwater,a rapidlydepleting resource. The Organisation for Economic Co-operation and Development had estimated that about 80% of India’s total available freshwateris used for agriculture.Itisestimatedthat 50-55%oftheirrigationwater across India is used up by just two crops: Rice and sugarcane. The Indian Council for ResearchonInternationalEco- 80% of India's fresh water used for agriculture, says OECD 50-55% of the country's irrigation water used up by rice and sugarcane Every 1 kg of rice produced in Punjab & Haryana uses 5,000 litre of irrigation water nomic Relations (Icrier) has just completed mapping the physical and economic productivity of water available in India. Rice, wheat, maize, chana, tur, groundnut, mustard, sugarcane, cotton and potato are the crops whose water use has been mapped. NabardchairmanHKBhanwala told FE:“Icrier,which has estimated water productivity of 10 important agricultural crops, is almost ready with its report...It is expected to be out in a month.” Cultivation of rice and sugarcane is the biggest contributor to depletion of groundwaterinPunjabandMaharashtra. Continued on Page 2 AFTER MOBILE NUMBER portability, data portability maybe in the offing.The Telecom Regulatory Authority of India (Trai) is likely to recommend as part of its consultative process on data ownership and privacy that consumers should be allowed to port their data, which would end data monopoly by a few big players as is the case today. Speaking at the Idea Exchange programme of the Express Group, Trai chairman RS Sharma said data portability means that a subscriber who's the owner of the data that is shared on any social media site can authorise another such site to take the data for purposes assigned. “This way any major social PRESS TRUST OF INDIA WASHINGTON, APRIL 13 Continued on Page 2 -0.7 March 2017 Source: Ministry of commerce Special Feature US declares review for India Continued on Page 2 Exports 0 Continued on Page 2 Interview with Group CEO, Dalmia Cement, on Page 6 ● GSP ELIGIBILITY media site would not have a monopoly on data and startups can benefit hugely,” Sharma said. However,there'sacatch.Trai regulates only telecom players and as such does not have powerstoregulatedata,whichisnot in the domain of telecom operators. However, it can certainly makearecommendationtothe government,which may frame laws to this effect. 7.2 20 27.6 Continued on Page 2 Infosys promises disbursal of another $2 billlion to shareholders, Page 6 BASED ONTHE market access concerns it has with India,the US on Fridayannounced eligibility review of India for the generalised system of preferences (GSP). The US also announced eligibility review of Indonesia and Kazakhstan, which it said was based on concerns about thecountries’compliancewith the programme. GSPisthelargestandoldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. Congress last month had voted to renew the GSP through 2020. For India, the GSP country eligibility review is based on concerns related to its compliance with the GSP market access criterion, said the office of the US Trade Representative (USTR). For Indonesia, the review is basedonconcernsrelatedtoits compliance with the GSP marketaccesscriterionandtheGSP services and investment criterion. Kazakhstan’s eligibility review is based on concerns related to its compliance with theGSPworkerrightscriterion. The USTR said the reviews are based on Trump administration’s new GSP country eligibility assessment process aswell as GSPcountryeligibility petitions. Imports 30 10 vided a slightly upbeat revenue growth guidance of 6-8% in constant currencyand 7-9% in reported currency for FY19. In FY18,therevisedrevenueguidancewas5.5-6.5%.Therevenue guidance of Infosys remains shortofthenumberprovidedby Nasscom, Indian IT industry’s trade body,aftercollatingviews from leading players,at 7-9%. Expressing satisfaction over the performance of the company, Infosys CEO Salil Parekh said,“Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees.”For Parekh, who took over as the CEO in January this year, the fourth quarter of FY18 represent his first full three-month term. RS Sharma, Trai chairman 15TH FINANCE COMMISSION Now Odisha opposes terms of reference, wants SCS tag PRASANTA SAHU New Delhi, April 13 THE 15TH FINANCE Commission’s (FC) terms of reference (ToR) have put fetters on its remit and its use of 2011 Census data would hit Odisha, whichisalreadybelowreplacement rate of 2.1, the state’s chief minister Naveen Patnaik wrote in a letter to Prime MinisterNarendra Modi on Friday, joining in the chorus of the southern states who have articulated similar concerns. In what would make the commission’s task difficult, Odishahasalsoreneweditsplea forspecialcategorystatus(SCS). Neighbouring Andhra Pradesh has been strident in its demand Share in India's population (%) 4.04 3.53 1971 2011 Odisha's share in Centre's divisible tax pool between 11th and 14th Finance Commissions (%) 11th for the tag, while the Centre’s policy is clearly trying to progressivelydoawaywithsuchdistinctions (the SCS is now confined to the eight states in the 12th 13th 14th 4.64 IHH offers `160 a share for Fortis ■ CoC approved Dalmia Bharatcontrolled Rajputana properties' bid on March 16, 2018 % growth 4.80 FOREIGN EXCHANGE RESERVES rose by $503.6 million to touch a lifetime high of $424.864 billion in the week to April 6, reports PTI. In the previous week, it had surged to $424.366 billion. valued at `6,600 crore Revenue (` cr) Q4FY18 5.16 Forex reserves at record high WITH THE SUPREME Court unwillingtointerfereintheproceedings under the Insolvency and Bankruptcy Code, 2016 (IBC),Binani Industries (BIL) on Friday withdrew its appeal for termination of the insolvency process under the IBC. BIL was hoping to pursue an out-ofcourt settlement for the sale of its subsidiaryBinani Cement. With this,Dalmia Bharat is set to take control of the lossmakingcementmanufacturer, subject to clearance by the National Company Law Tribunal (NCLT). Dalmia Bharat’s resolution plan was approved by the committee of creditors (CoC) in March and it is believed to have submitted a bid of about `6,600 crore. The apex court’s verdict assumessignificancefortheIBC process as it will deter bidders from seeking resolutions outside of the purviewof the IBC. Abenchcomprisingjustices AK Goel and Rohinton Nariman was unimpressed with BIL’s plea to terminate insolvency proceedings. Nariman ■ Dalmia Bharat's bid likely Q3FY18 5.06 THE GOVERNMENT SAID on Friday it will launch the first tranche of sovereign gold bonds for the current fiscal on April 16, offering a 2.5% annual interest to investors, reports fe Bureau in New Delhi. Applications for the bond will be accepted from April 16 to April 20. The bonds will be issued to eligible applicants on May 4. INDU BHAN, MITHUN DASGUPTA & SHAMIK PAUL New Delhi/Kolkata/ Mumbai, April 13 Comes in at $571m; revenue guidance at 6-8% for FY19; warns on OPM « IN THE NEWS Govt to launch next gold bond tranche on Apr 16 Supreme Court unwilling to interfere in IBC proceedings; Dalmia Bharat set to take control Infosys net meets expectations « Binani withdraws termination plea FOURTH QUARTER 17,794 RACE FOR BINANI CEMENT northeast and the hillystates of JammuandKashmir,Himachal Pradesh and Uttarakhand). 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