OPINION, P8 COMPANIES, P6 JULY-SEPTEMBER EDITORIAL The Ruias’ offer for Essar Steel can, and should, be refused UGC mustn’t gag academics by bringing university professors on a par with bureaucrats INTERNATIONAL, P16 MANHUNT INTENSIFIES Bharti Airtel’s consolidated net profit rises 22.69% More bombs: Former US VP Biden, actor De Niro recipients NEW DELHI, FRIDAY, OCTOBER 26, 2018 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL.XLIV NO. 204, 28 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: 33,690.09 ▼ 343.87 NIFTY: 10,124.90 ▼ 99.85 NIKKEI 225: 21,268.73 ▼ 822.45 HANG SENG: 24,994.46 ▼ 255.32 `/$: 73.28 ▼ 0.12 `/€: 83.60 ▼ 0.22 BRENT: $76.69 ▲ $0.52 GOLD: `31,736.00 ▲ `44.00 Drama outside Verma’s home AS THE CBI deals with an unprecedented internal crisis, all eyes are on the Supreme Court on Saturday when its director Alok Verma's plea against the Centre's order divesting him of duties and sending him on leave is slated to come up, amid drama Thursday over the presence of IB officers outside his residence in Delhi, reports PTI. THE RUIAS ON Thursday offered to paylenders `54,389 croretoretainEssarSteelhours after the committee of creditors (CoC) voted on the bid by ArcelorMittal. TheRuiasofferedtopaythe dues under Section 12A of the Insolvency and Bankruptcy Code (IBC),introduced in 2018 byway of an amendment. Meanwhile, sources said 90% of the lenders on the CoC had voted in favour of the bid by ArcelorMittal, which has promised at least `39,500 crore byway of cash upfront. Eminent lawyer Shardul Shroff, founder, Shardul Amarchand Mangaldas, said Section 12 A would not be applicableinthiscase.“Section 12A is valid only before the October 4 SC asks Numetal and ArcelorMittal to resubmit revised bids February 12, 2018 ArcelorMittal, Numetal submitted bids October 24 CoC votes on Arcelor Mittal proposal to pay `50,000 cr August 2, 2017 NCLTadmitted Essar Steel's insolvency case We believe our proposal will provide 100% recovery to secured creditors and lenders, and maximum recovery for unsecured creditors. — PRASHANT RUIA, DIRECTOR, ESSAR EoIs come in.But here not only have the EoIs come in,the CoC has finished voting on the two proposals as mandated by the Supreme Court,” Shroff explained. Shroff, who was speaking to FE only in his personal capacity, observed that on a reading of the Supreme Court order, it was very clear therehastobeare-submission by Numetal and Arcelor, and Essar by itself was not a party or a bidder. Continued on Page 2 Continued on Page 2 95.3% H1 fiscal deficit against FY19 target 7.5% Growth rate in net tax receipts in H1FY19 versus 19% budgeted `1,62,629 cr H1 capex, up 11% y-o-y Chg (%) 3,677 2,484 2,240 3,431 11,863 12,544 Operating Net Material Ebitda revenue profit cost « 3 9.8 5.7 6.7 Ebitda margin Sales volume (%) (units) 16.9 160 4,92,118 bps 4,84,848 1.5 « September 10 Both parties appealed in SC against NCLAT order March 23 CoC declared both bids ineligible and invited fresh bids SLOWER-THAN-PROJECTED growthinrevenue,especiallytax and disinvestment receipts, resulted in the Centre’s fiscal deficit in the first six months of thisfiscaltobeabout`5.95lakh crore,or 95.3% of the full-year target, according to data released by the Controller GeneralofAccountsonThursday.In the corresponding period last year, the deficit was 91.3% of the relevant annual target and the government finally had to allow a 33 basis points slippage from the targeted deficit of 3.2% of GDPforFY18. Q2FY19 « September 7 NCLAT holds Numetal's 2nd bid eligible but asks Arcelor to first pay dues MARUTI SUZUKI INDIA (MSIL) on Thursday reported a near 10%year-on-yeardeclineinnet profit to `2,240 crore for the quarter ended September, mainly due to a flat top line, higher commodity costs and a weaker rupee. Operating revenues jumped 3% y-o-y to `22,433 crore. Maruti chairman RC Bhargavablamedtherisingcrudeoil prices and insurance costs for poor sales. “It was a peculiar quarter for us. Our sales were lowerbutthefinancialsarebetterthan in Q1FY19.The impact Q2FY18 22,433 March 26 ArcelorMittal moved NCLT challenging rejection of its bid FE BUREAU New Delhi, October 25 (` cr) « FE BUREAU Mumbai, October 25 April 28 ArcelorMittal moved NCLAT challenging Numetal's eligibility FE BUREAU New Delhi, October 25 « GOLD PRICES rose by another `125 to trade at an over six-year high of `32,625 per 10 grams on Thursday, buoyed by a pick-up in festive and wedding season demand by local jewellers amid firm global trends and a weakening rupee, reports PTI. Silver remained weak and fell by `130 to `39,600 a kg. April 19 NCLT Ahmedabad asked RP, CoC to consider first set of bids Maruti net falls 10% on commodity costs, weaker ` « IN THE NEWS Gold hits over six-year high Ruias’`54,389-cr bid will work if SC allows Essar to opt out of IBC using Sec 12A. Law says this can take place only before bidding begins Centre’s H1 fiscal deficit at 95.3% of annual target Q2 PERFORMANCE « Ruias make last-ditch attempt to keep Essar ● SLOW TAX GROWTH 21,768 ESSAR STEEL 15.3 Continued on Page 2 ● IL&FS PMO reviews crisis, board's revival plan on October 31 FE BUREAU Mumbai/New Delhi, October 25 THE GOVERNMENTAPPOINTED board of Infrastructure Leasing & Financial Services (IL&FS),which met in Mumbai on Thursday, will submit a revival plan with the National Company Law Tribunal (NCLT) on October 31. of the rise in prices of crude oil has been quite significant.Also, the long-term insurance has increasedvehiclecostby`9,000 which has impacted buyer sentiments,” Bhargava said. The automaker also expressed concernsaboutthemuteddemand in the ongoing festival season. “Themarkethaschangedfor theworseinthelastfewmonths. It doesn’t seem to be showing the kind of buoyancy expected in the festival period. Usually there is a 10-15% rise in sales during the festival season but there is no such indication this year,” Bhargava told reporters. The board hasn’t sought a bailout by the government; instead, it plans to monetise some assets for revival, an official source said. Meanwhile, the Prime Minister’s Office (PMO) is learnt to have held a meeting onThursdayto review the crisis at IL&FS, another source told FE. Continued on Page 2 Special Feature ‘SBI aims to be the preferred bank for urban youth’ ■ BrandWagon, P13
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