OPINION, P2 EXPRESS ADDA The Republic of Impunity IDEA EXCHANGE NIRMALA SITHARAMAN ‘This govt has faced tonnes of questions, we’re continuously put on test’ Page 4 ACROSSTHEAISLE, P CHIDAMBARAM Vol XVII No 26 SK Mendiratta ‘We’re all worried about the fair name of EC... Two-three decisions have created some dent’ Page 8 LEISURE Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM COLOUR ME PURPLE NEW DELHI SUNDAY, APRIL 22, 2018 16 Pages, `10 (Patna `11, Raipur `10) SPOTLIGHT MADE IN MARATHI FINANCIALEXPRESS ON SUNDAY READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE BID FOR ESSAR STEEL CABINET TALKS TOUGH RP tells NCLT Rewant Ruia Crackdown on economic end beneficiary of Numetal offenders, child rapists ● Says Numetal set up on October 13, 2017; resolution plan submitted on October 20 FE BUREAU Mumbai, April 21 Marathi cinema is on a roll with the films getting increasingly bigger and better. Big studios are pumping in more money, new awards are being launched and even Bollywood stars are eyeing the industry with renewed interest Page 7 WORDSWORTH INFORMATION OVERLOAD The sheer amount of data today is changing decision-making, says Reinventing Capitalism in the Age of Big Data Page 5 REWANT RUIA IS one of the ultimate beneficiaries and owners of a shareholder of Numetal — one of Essar Steel’s bidders — through various holding companies and trusts, EssarSteel’s resolution professional Satish KumarGupta has told the Ahmedabad Bench of theNationalCompanyLawTribunal (NCLT). According to the NCLT’s order,inacasefiledbyNumetal and ArcelorMittal challenging their ineligibility to bid for EssarSteel,theRPhasinformed the court that Numetal “is nothing but a newly-incorporated joint venture between Aurora Enterprises, Crinium Bay,IndoInternationalLtdand Tyazhpromexport through whichitsshareholdershavethe resolution plan”. “The applicant has not submittedanyagreementorunderstanding among parties to substantiate the averment that AEL/Rewant Ruia has no managementrights,specialrights,or the ability to participate in the management of the applicant QuickPicks ‘Right to equality can be invoked if CoC violates IBC’ NATIONAL COMPANY Law Tribunal (NCLT) chairman Justice MM Kumar said on Saturday that Article 14 of the Constitution (right to equality) can be invoked if the committee of creditors (CoC) violates the Insolvency and Bankruptcy Code law while examining business restructuring plan and proposals, reports PTI. PAGE 16 GST roadblocks hit India’s export prospects in FY18 ROADBLOCKS SUCH as delay in goods and services tax (GST) refunds, and after-effects of the note ban hit India's export prospects in FY18 amid a revival in global demand in key markets of the US and the EU, a report by PHD Chamber said, reports PTI. Exports grew just 10% to $302.8 billion in FY18 against expectations of $325 billion in the last fiscal, the report said. PAGE 16 ODD & EVEN ROHNIT PHORE The Numetal trail ■ Numetal was incorporated on October 13, 2017 for the purposes of submission of the resolution plan ■ During incorporation, entire shareholding was held by Aurora Enterprises Ltd (AEL), which was in turn held entirely by Aurora Holdings Ltd, which was in turn held entirely by Rewant Ruia (through a trust and another holding company) ■ On October 18, 2017, AEL transferred 26.1% of its shareholding in Numetal to Essar Communications (ECL) ■ On Feb 12 40% of Numetal was held by Crinium Bay, 25.1% held by Indo International Ltd, 9.9% by Tyazhprom export and 25% by AEL ■ Numetal by itself does not meet the financial eligibility criteria and is relying on its shareholders’ strength either currently or going forward,” Gupta said. Headdedthattheapplicant (Numetal)wasincorporatedon October 13, 2017, for the purposes of submission of the resolutionplan.Accordingtohim, at the time of incorporation of the company, its entire shareholding was held by Aurora Enterprises Ltd (AEL), which was in turn held entirely by Aurora Holdings Ltd, which was in turn held entirely by Rewant Ruia (through a trust (` crore) Q4 FY18 Chg (%) Q3 FY18 Chg (%) Total income 21,561 25,550 18.5 24,450 4.5 Net interest income 9,055 10,658 17.7 10,314 3.3 Other income 3,446 4,229 22.7 3,869 9.3 Core NIM (%) 4.3 4.3 — 4.3 — Provisions 1,262 1,541 22.1 1,351 14.0 Net profit 3,990 4,799 20.3 4,643 3.4 Gross NPA (%) 1.05 1.3 25 bps 1.29 1 bps Net NPA (%) 0.33 0.4 7 bps 0.44 -4 bps Source: HDFC Bank FE BUREAU Mumbai, April 21 Green fashion: The way ahead Many fashion labels are taking measures to balance their growth trajectory with their social footprint brands across categories are doing their bit to create awareness regarding this, as well as playing theirpart in conserving the planet’s natural resources. One industry that has made a conscious effort over the last coupleofyearstomakeadifference is the fashion industry. For example, United Colors ofBenettonranksinDetoxrankings created by Greenpeace to recognise brands that have made progress in reducing the presence of harmful chemical substances in their production ON TUESDAY FROM FASHIONCONSCIOUS TO CONSCIOUS-FASHION processes.Inaddition,thecompany has reduced CO2 emissions generated by road transport by over 25%, reducing by 20%thenumberoftrucksused to transport its goods in Italy and Europe. Similarly, there’s H&M, another fast fashion brand that entered the Indian retail market a few years ago.It has launched its Conscious Exclusive 2018 collection and for the first time, it has introduced two sustainable materials—recycledsilverandEconyl, a100%regeneratednylonfibre from fishnets and other nylon waste. “We don't have to just look at ‘now’, but also think of what we are leaving behind for future generations,” says Elin Astrom,headofH&M’ssustainabilityprogrammeinIndia.And the report goes on to highlight that under-utilisation and lack of recycling every year result in alossofmorethan$500billion. AsperanEllenMacArthurFoundation report, the $1.3 trillion clothing industryemploys over 300 million people along the value chain globally. 17.7%y-o-yto `10,658 crore. The bank’s provisions rose 22% y-o-y to `1,541 crore in the March quarter. HDFC Bank’s net interest margin — a key measure of profitability — in Q3 remained unchanged at 4.3% from the end of December 2017 and March 2017. Its asset quality remained stablewith a 1 basis point (bps) rise in gross non-performing assets (NPAs) ratio — bad loans asapercentageoftotalloans— to 1.3% in Q4 FY18. However, on a y-o-y basis, the gross bad loan ratio rose 25 bps. FE BUREAU New Delhi, April 21 cleared a proposal to promulgate an ordinance to attach assets of fugitive economic offenders like jeweller Nirav Modi, after efforts to get Parliamentaryapprovalforthe Fugitive Economic Offenders Bill (FEOB) in the recently-concluded Budget session failed. The ordinance will make it easierto attach all the assets of economic offenders fleeing India to escape the reach of law,evenwithout a conviction. Offences with a value of `100 crore or more will be covered by it. Ironically, the FEOB,which was introduced in the Lok Sabha on March 12, could not be passed due to frequent disruptions over issues, including the $2-billion fraud at state-run Punjab National Bank, involving Nirav Modi and his uncle Mehul Choksi. The ordinance, modelled after the FEOB, will come into effect after the assent of the President. Continued on Page 11 Continued on Page 11 PRESS TRUST OF INDIA Mumbai, April 21 Q4 FY17 ● Clears proposals to promulgate ordinances against both crimes which is an indirect wholly owned subsidiaryofVTB Bank, and AEL transferred its 13.9% shareholding to Crinium Bay, 25.1% shareholding to Indo International Ltd and 9.9% to Tyazhpromexport,” Gupta said. According to the RP, on the date of submission of the Numetal Resolution plan,(Feb 12,2018),the shareholding of theapplicantwas:40%heldby Crinium Bay, 25.1% held by Indo International Ltd, 9.9% byTyazhpromexport and 25% byAEL. Numetal, he explained, by itselfdoesnotmeetthefinancial eligibility criteria and is relying onitsshareholders’strengthfor satisfying the requirements of the process documents.At the stage of submission of EoI, he added, it met the tangible net worth requirement prescribed under the advertisement by relying on the networth of ECL and for purposes of the NumetalResolutionPlan,itsatisfies the minimum tangible networthcriteriaonaccountof Crinium Bay. Aadhaar link must for accounts under KYC norms: RBI Report card reporteda20.3%year-on-year (y-o-y) growth in net profit for the March quarter of 2017-18 to `4,799 crore on the back of higher net interest income (NII), coupled with a rise in otherincome.Its otherincome rose 22.7% y-o-y to `4,229 crore in Q4. The bank’s net interest income (NII) — the difference between interest earned and interest expended — rose MEGHNA SHARMA Mumbai, April 21 and another holding company). Further, on October 18, 2017,AELtransferred26.1%of itsshareholdingintheapplicant toEssarCommunications(ECL) and on October 20, 2017, Numetal submitted its expressionofinterest(sevendaysafter its incorporation) pursuant to the advertisement. “I understand that ECL transferred its entire shareholding in the applicant to one Crinium Bay Holdings Ltd, HDFC Bank Q4 net up 20% at `4,799 crore HDFC BANK ON Saturday WITHEARTHDAY approaching, From runways to red carpets, mobile phones to interiors,colour of the year purple is taking the world by storm Page 9 THE RESERVE BANK of India (RBI) has made linking of national biometric ID Aadhaar to bank accounts mandatory as part of its updated ‘know your customer’ (KYC) guidelines. This, however, will be subject to the final decision of the Supreme Court on making of Aadhaarmandatory,RBIsaidin a circular late Friday night. Till now, an officially valid document foraddress proof togetherwith Permanent Account Number (PAN) issued bythe income tax department and a recent passport size photograph were the key KYC documents. But in the amended customer due diligence procedure, RBI said, “The Aadhaar number, the PAN or Form No. 60 need to be obtained from an individual who is eligible for applying for the biometric ID.” THE CABINET ON Saturday NO EASY GETAWAY Ordinance to cover offences of `100 cr or more ■ All assets of fugitive offenders to be attached, even without conviction ■ PMLA currently allows confiscation of assets made from crime proceeds only Death for raping girls below 12 PRESS TRUST OF INDIA New Delhi, April 21 THE UNION CABINET Saturday approved an ordinance to provide stringent punishment, including death penalty,for those convicted of rape of girls below 12 years. New fast-track courts will be set up to deal with such cases and special forensic kits for rape cases will be given to all police stations and hospitals in the long term,according to the Criminal Law Amendment Ordinance. It stipulates stringent punishment for perpetrators of rape, particularly of girls below 16 and 12 years. Death sentence has been provided for rapists of girls under 12 years, officials said quoting the ordinance. The minimum punishment in case of rape of women has been increased from rigorous imprisonment of seven years to 10 years, extendable to life imprisonment, they said. Continued on Page 11 US-China trade war to hurt global growth: EIU PRESS TRUST OF INDIA New Delhi, April 21 AHIGH-OCTANE trade dispute between the world’s two largest economies — China and the US — will harm global trade this year as it would give rise to protectionism, an EIU report says. AccordingtotheEconomist Intelligence Unit (EIU) report, while global trade will be overshadowed by the ongoing dispute between China and the US,appetite for new free-trade dealswillcontinueintherestof the world, including those involving India. “Our assumption that protectionism will rise, but that a tradewarwillbeaverted,means that global trade growth will continue to slow in 2019-22, to an average of 3.5% a year,” the EIU report said. As per the World Trade Organisation (WTO),the global trade growth recorded in 2017 stood at 4.7% and is estimated at about 4.4% for 2018. The report, however, noted that a “full-blown tradewar”—where there is an exchange of tariff or non-tariff barriers that causes WTO also warns of threat to economic expansion PRESS TRUST OF INDIA Washington, April 21 A BREAKDOWN IN trade relations among major players could threaten the ongoing economic expansion and put many jobs at risk, the World Trade Organization has said, amid an escalating US-China trade war. Noting that global cooperation will be essential in easing tensions and safeguarding the strong growth that they are being seen now, Roberto Azevedo, director general of the WTO, said the trade body will play its proper role in significant economic pain to both sides — will be averted,for “both economic aswell as political reasons”. With the US turning away frommultilateraltradeliberalisation, after Donald Trump pulledthecountryoutofthe12member Trans Pacific Partner- this process. "The improved outlook for trade is welcome news, but there are a number of downside risks threatening the world economy and the recovery of world trade. Economic factors include the expected tightening of monetary policy in developing nations and the reining in of credit and fiscal expansion in large emerging market economies," Azevedo told the annual spring meeting of the International Monetary Fund. Continued on Page 11 ship (TPP), China now has the opportunity to help to set the rulesofengagement,itsaid.The EIU,however,noted that China doesnothave“thewillingnessor thecapabilitytotakeonthefreetrade mantle fornow”. Continued on Page 11 No more nuclear tests,promises North Korea Says nuclear development successful, to mothball nuclear site; will pursue ‘active dialogue’ with others BLOOMBERG April 21 NORTH KOREA HAS achieved its goal of developing a nuclear arsenal and is suspending further tests of atomic weapons or intercontinental ballistic missiles, its state-run media reported, citing leader Kim Jong Un. Kim said the regime’s nuclear test site will be shuttered, according to the Korean Central News Agency. Punggye-ri, built in a secluded mountain valley northeast of Pyongyang and the site for all six of the regime’s nuclear blasts, has already been in doubt amid signs of structural weakness,and some observers People watch a TV screen showing Kim Jong Un during a news programme in Seoul on Saturday have said it would be unsafe to do more tests there. “I solemnlydeclare thatwe have accomplished credible weaponisation of nuclear forces,”Kimwas quoted as saying at a Friday ruling party meeting.“Our decision to sus- pend nuclear tests is part of the world’s important steps for nuclear disarmament and our republic will join global efforts to completely suspend nuclear tests.” The comments come ahead of his talks on April 27 with South Korean President Moon Jae-in and a planned summit with US President Donald Trump in May or June. While Kim’s statement that he has achieved his desired deterrent is largely a reiteration of prior claims — and he made no commitment to giving up the weapons he has already acquired — the pledge to mothball the test site suggests he’s seeking to further ease tensions ahead of those meetings. A spokesman for Moon said Kim’s statement was a positive sign, while Trump praised it in a tweet, calling it “very good news for North Korea and the World”. “Big progress!” he added. “Look forward to our Summit.” In a later tweet he noted that North Korea would “shut down a nuclear test site in the country’s Northern Side to prove the vow to suspend nuclear tests”. North Korea has already effectively halted weapons tests for about five months, after firing a missile on November 29 believed to be capable of reaching any city in the US.
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