Announcing the changes in a parliamentary statement on Thursday, immigration minister James Brokenshire said:
London, Apr 2,2016 : The beleaguered Tata Steel may shut its British plants in six weeks if it does not find a buyer soon even as it is in talks to buy steel assets of one of German’s largest producers.
The Indian steel giant is only “going through the motions” of a sale and has privately given up hope of finding a white knight to rescue the loss-making unit and save 15,000 jobs, the Financial Times reported today, citing people familiar with the company’s internal plans.
“Tata Steel could mothball plants in as little as six weeks. They have to go through the motions. But if they have not found a buyer by the next board meeting at the end of April, they will close it and they are not expecting anyone to come forward now,” it said, citing a person.
The company is likely to appoint bankers to run through the sale process in the next few days.
The Daily Telegraph said Tata is in talks to buy the steel assets of one of Germany’s largest producers after quitting its operations in the UK. It has entered into discussions to merge its European business with ThyssenKrupp, to create one of Europe’s biggest industrial companies.
Tata Steel had in January announced laying off 750 workers in a desperate bid to salvage its ailing Port Talbot steel plant in South Wales – the UK’s biggest.
This week, Tata Steel announced plans to sell its entire UK business as the company battles to control its “deteriorating financial performance”, nine years after it had acquired Corus to become Europe’s second-largest steel maker.
The board of one of the world’s largest steelmakers met earlier this week to decide on the future course of action in a bid to steer its embattled operations in Europe out of the rut, which face supply glut, increase in cheap imports amid a continued weakness in demand in European markets.
The board noted with “deep concern the deteriorating financial performance of the UK subsidiary in the last 12 months”.
Tata acquired Corus, now Tata Steel Europe, in April 2007. The European behemoth was formed by a merger of British Steel and Dutch firm Koninklijke Hoogovens in 1999.
In its 2007-08 annual report, Tata Steel said it has completed the long-term financing programme for Corus acquisition.
Of the total enterprise value of USD 14.2 billion, at the close of Corus acquisition process on April 2, 2007, the financing included about USD 10.5 billion as bridge funding, the balance being applied out of Tata Steel’s own cash and borrowings.
However, shortly after the deal, an economic slowdown and continued weakness in European markets hit the company’s sales, from which the steel maker is still trying to recover.
While the global steel demand, especially in developed markets like Europe remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently.
This is mostly due to structural factors such as global oversupply of steel, increase in third-country exports into Europe, high manufacturing cost, continued weakness in domestic steel demand and a volatile currency.
@ Agency report.
According to a notification, public institutions like post offices, employees provident fund organisation (EPFO) will be required to assess the unclaimed amounts and transfer them to ‘Senior Citizens Welfare Fund’ before March 1 every year.
The money will be utilised to promote financial security of senior citizens, old age pension, healthcare, health insurance and welfare of elderly widows. It will also fund schemes related to old-age homes, day care of senior citizens and research activities related with ageing.
Finance Minister Arun Jaitley in Budget 2015-16 had announced creation of a fund using unclaimed deposits of about Rs 3,000 crore in the PPF, and Rs 6,000 crore in the EPF corpus.
The Fund, he said, “will be used to subsidise the premiums of vulnerable groups such as old age pensioners, BPL card-holders, small and marginal farmers and others”.
The number of senior citizens in the country is over 10.5 crore, out of which over one crore are above the age of 80 years. 70 per cent live in rural areas and a large number are in the BPL category.
As per the notification, the unclaimed amounts will be transferred from small savings and other savings schemes of the central government including the Post Office Savings Accounts, Recurring Deposit Accounts, Time Deposit Accounts, Monthly Income scheme, Senior Citizens’ Savings Scheme Accounts, Kisan Vikas Patra, National Savings Certificates, Sukanya Samriddhi Accounts and discontinued Small Savings Schemes.
Besides, unclaimed deposits in Public Provident Fund (PPF) and accounts of Employees Provident Fund will also be transferred to the newly created Fund.
However, before transferring the Fund, the institutions will try to contact each of the account holder of the unclaimed amount, including by way of written notice, e-mail and telephone, twice within a period of 60 days.
The institution will display the list prepared for the general information of the public, on the notice boards of the relevant offices and on the website of the Institution concerned for at least a period of 60 days, inviting claims, if any, the notification said.
The Fund, to be set up under the aegis of Ministry of Social Justice and Empowerment, will be managed by a committee headed by the Secretary of the Ministry. It will have representatives from Ministries of finance, labour, health, rural development and Housing and Urban Poverty Alleviation. The Committee will meet at least twice a year.
@ Agency report.
New Delhi, 2016 ,Apr 1 : Consumer loans today became cheaper with banks moving to a new way of setting lending rates following RBIs diktat to ensure faster and effective transmission of its policy rate cuts to borrowers. A number of banks, yesterday said that they would move to new methodology for setting lending rates from April 1.
RBI had asked banks to price fixed rate loans of up to three years based on marginal cost of funds from April 1. The lending rate based on marginal cost of funds is lower than base rate in some cases resulting in lower EMIs for borrowers. Most of the banks were deciding lending rates based on their average cost of funds. Experts have said implementation of Marginal Cost of Funds-based Lending Rate (MCLR) would bring down lending rate by up to 1 per cent in some cases. ICICI Bank in a statement said that it has fixed lending rate of 9.10 per cent for three-month loan, 9.15 per cent for six months and 9.20 per cent for one year loan. The base rate or the minimum lending rate of ICICI Bank is 9.35 per cent. Similarly, after implementing MCLR, Kotak Mahindra pegged lending rate at 9.60 per cent for one-year loan and for 3 years at 9.65 per cent. Kotak Mahindra Bank has fixed its base rate at 9.50 per cent. The MCLR is expected to address the RBIs primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates, ratings agency Ind-Ra has said.
@ Agency report.
New Delhi : Majority of corporates expect to spend more on social welfare activities in the next financial year as CSR increasingly becomes part of strategic decision making process, says a survey.
However, the survey by industry body Ficci also revealed that companies find lack of clarity on laws and tax related regulations along with some other factors as obstacles in implementing Corporate Social Responsibility (CSR) projects.
Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least 2 per cent of their three-year average annual net profit towards CSR activities. The norm came into effect from April 2014.
Ficci said 83 per cent of the participating companies anticipate an increase in their CSR spending in 2016-17.
“While 6 per cent participants expected a decline, another 9 per cent cited no change. The remaining 2 per cent of the companies said that they have made a CSR allocation in their budget for the first time,” it noted.
The findings are based on a survey conducted between January and February covering 150 responses. The respondents include public sector undertakings, private firms and foreign multinational companies, had a turnover ranging between Rs 1.7 crore and Rs 75,000 crore.
As much as 77 per cent of the companies surveyed reported that an increase in their CSR budget in 2014-15 compared with 2013-14 period.
On the other hand, the survey found “inadequate clarity on laws and tax related regulations”, among others, was seen as an obstacle by firms in implementing CSR projects.
When it comes to motivation, majority of the respondents indicated ethical considerations as the primary factor behind adoption of CSR activities.
“Companies are increasingly looking at integrating their businesses with the community to create shared value. About 49 per cent of the respondents stated creation of shared value as a motivation factor, followed by social good compliance,” Ficci said.
Around 95 per cent of the participants said their CSR projects are aligned with the government’s development initiatives, including Swachh Bharat Mission, Skill India and National Health Mission.
“It is encouraging to note that companies have continued to base their CSR programmes according to community needs aligning with the national development agenda, especially those impacting women and children,” said Rajashree Birla, Chairperson, Ficci-Aditya Birla CSR Centre for Excellence.
@Agency report.
Announcing the changes in a parliamentary statement on Thursday, immigration minister James Brokenshire said:
The changes include a higher salary threshold for a British company employing a non-EU professional, an “Immigration Skills Charge” of £1,000 per non-EU professional hired per year, and an “Immigration Health Surcharge” for those under the ICT category.
Brokenshire said: “We will increase the Tier 2 minimum salary threshold to £30,000 for experienced workers. This change will be phased in, with the minimum threshold increased to £25,000 in autumn 2016 and to £30,000 in April 2017.”
Those migrating under the ICT category will be required to qualify under a single visa category with a minimum salary threshold of £41,500, Brokenshire said.
“To provide some further flexibility within the streamlined intra-company transfer category, we shall lower the minimum salary threshold for intra-company transferees working in the UK for between five and nine years from £155,300 to £120,000,” he said.
Britain will also remove the one year experience requirement for all applications where the worker is paid over £73,900. These changes will take effect from April 2017, Brokenshire added.
Indian professionals were given the largest number of visas under Tier 2 in the year ending September 2015. Indian IT workers accounted for 90% of visas issued under the ICT route.
Indian IT majors have several offices in Britain, mostly staffed by Indian employees.
The changes are based on recommendations made by the Migration Advisory Committee (MAC) of the Home Office, which had, in a report in January, specifically mentioned India and its strengths in the IT sector to suggest new curbs.
“(Immigration) is not serving to increase the incentive to employers to train and upskill the UK workforce. Ready access to a pool of skilled IT professionals in India is an example of this,” it said in the report.
“We did not see any substantive evidence of long-standing reciprocal arrangements whereby UK staff are given the opportunity to gain skills, training and experience from working in India.”
The MAC noted that “some of the heaviest users of the intra-company transfer route are Indian companies, and the top ten employers using the intra-company transfer route are all largely employing IT workers from India”.
It said: “The evidence indicates that multinational companies with a presence in India have developed a competitive advantage in delivering IT projects in the UK.”
New Delhi: To help investors get a clearer picture on their returns, markets regulator Sebi plans to encourage listed companies to put in place their own dividend distribution policies.
The proposal forms part of Sebi’s Plan of Action for the next fiscal, beginning next month, which was approved by the regulator’s board this weekend.
The capital market watchdog would seek to strike a balance between investor interest and not being prescriptive in terms of regulations for dividend payment.
While dividend payment has been in vogue for many decades, having a clearly defined policy in this regard would help investors identify and understand the potential of returns on investments made in a company, a senior official said.
Sebi board has identified dividend distribution policy as a focus area for the regulator in 2016-17 period and efforts would be made to encourage listed entities to work in this regard.
In this regard, Sebi is looking to ensure that listed firms can state circumstances under which investors can or cannot expect dividend payouts.
Late last year, there was furore over InterGlobe Aviation, which operates the no-frills carrier IndiGo, doling out hefty dividends to promoters before its listing as the payout had resulted in the company’s net worth turning negative for a brief period.
Though on the anvil for quite sometime, a decision on making dividend distribution policy must for publicly traded companies would be made only after extensive stakeholder consultations.
The capital market regulation might also ask companies to disclose a broad formula for dividend calculation.
At the same time, the Sebi would steer clear of any directive being given to the companies to pay any particular dividend amount as it wants to focus on disclosures rather than being intrusive into financial decisions of the companies.
Earlier, Sebi’s International Advisory Body had suggested that companies as a policy should not be forced to pay dividend and it is a better idea to explore mandating a dividend distribution policy for corporates.
A number of companies in India already have dividend distribution policy in place, but it is not mandatory under any regulation and therefore there is no uniformity in such policies of different corporates.
Dividend payouts used to be a major attraction for stock market investors, but as many companies are more focussed on higher share prices they have also cut down on dividend amounts.
In recent times, there have been concerns among investors that listed firms are not paying dividend despite sitting on huge cash piles.
Globally too, investors have been raising their voice against the companies that are hoarding cash and not distributing their extra profits among shareholders.
@ Agency report.