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Cabinet nod for Rs 24,000 cr FDI in HDFC Bank

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HDFC Bank

New Delhi, June 13: The Cabinet on Wednesday approved Rs 24,000 crore foreign direct investment (FDI) into HDFC Bank, Finance Minister Piyush Goyal said here.

“Even with this infusion the foreign equity will remain capped below 74 per cent,” Goyal said at a press conference while announcing Cabinet decisions.

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GST implementation an example of tax terrorism: Chidambaram

On whether the Goods and Services Tax is flawed despite amendments, Chidambaram said that it proved that it was implemented in a wrong manner.

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P Chidambaram

New Delhi, Aug 19 (IANS) Former Union Finance Minister P. Chidambaram on Sunday attacked the Modi government on the falling value of rupee and said the manner of implementation of the GST is an example of tax terrorism.

The senior Congress leader also said that stagnant investment, fiscal deficit under pressure and the state current account deficit is having an impact on the macroeconomic stability.

Asked if absence of a regular Finance Minister in the Modi government is responsible for the economic slowdown, Chidambaram said: “I thought there were three Finance Ministers — one is de facto, one de jure, and one invisible.”

On the falling rupee, the former finance minister said:”The investment is stagnant at 28.5 per cent. You cannot expect the GDP to grow more than 7 per cent.

“There is something known as Implemental Credited Output Ratio (ICOR). In India, we normally take four ICOR. You divide investment by Incremental Capital Output Ratio. It gives you an indication of the growth. If investment is 28.5 per cent and you divide it by four you will get a growth of only 7 or 7.1 per cent.

“Fiscal deficit is under pressure. The current account deficit in 2017-18 has already touched two per cent and I am told that in the current year, it will cross 2 per cent. All this is having an impact on the macroeconomic stability,” he added.

On whether the Goods and Services Tax is flawed despite amendments, Chidambaram said that it proved that it was implemented in a wrong manner.

“I think, there are still grievances, there are still complaints. GSTR 2 and GSTR 3 have not been notified. Tax liability is being decided by temporary GSTR form called GSTR 3A. If you speak to business persons… they still face numerous difficulties in complying with GST laws,” he added.

Chidambaram said that extraordinary powers have been given to various tax departments and humongous numbers of notices are sent out by every department.

“It only creates fear among the individuals as well as business persons,” he said.

“Somebody who runs a medium-sized business gets a notice practically every third month… what is he supposed to do? Does the department have the capacity to deal with one lakh notices and two lakh notices? They don’t have the capacity. Yet these notices are sent.”

Chidambaram said that since this government had a majority in Parliament it should have repealed the so-called Vodafone amendment to the Income Tax Act.

“Far from that, they have sent Retrospective Tax demands to many other transactions. Vodafone did not turn out to be one-off case. There are several other cases where demands for tax retrospectively have been levied, which is frightening away investors.

“The way the GST is implemented is an example of tax terrorism… you ask someone to file 37 returns in a year in a single state. If he has all-India business, he has to file over 1,000 returns. What else is tax terrorism?” he asked.

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Infosys CFO Ranganath resigns, search for successor soon

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Ranganath

Bengaluru, Aug 18 (IANS) Infosys Chief Financial Officer (CFO) M.D. Ranganath has resigned and will continue in the executive post till November 16, the IT major said on Saturday.

“The Board of Directors accepted the resignation of Ranganath as the CFO and key managerial personnel. He will continue in the post till November 16. The Board will soon search for the next CFO,” said the city-based software firm in a statement here.

Claiming that he resigned to pursue professional opportunities in new areas, Ranganath said he had an 18-year successful career in the $10.9-billion global firm and as its CFO for the past three crucial years.

“I am grateful to the iconic firm for giving me an opportunity to serve as CFO. I am also proud that during its critical phase, we delivered strong financial outcomes, strengthened its competitive position and enhanced the value of its stakeholders,” said Ranganath in the statement.

Ranganath, 55, is the third CFO to leave Infosys in the last six years after then CFO V. Balakrishnan was elevated to the Board as a Director and head of the company’s back office operations (Infosys BPO) in October 2012.

Balakrishnan left Infosys subsequently in December 2013.

Rajiv Bansal, who succeeded Balakrishnan in November 2012, resigned from the high-profile executive post in October 2015 amid a raging controversy over governance issues between the company’s co-founders and previous Board of Directors.

Infosys co-founder N.R. Narayana Murthy also objected to the hefty severance package given to Bansal, who was a party to the “costly” acquisition of the US-based Panaya software firm in February 2015 under the company’s first non-promoter Chief Executive Vishal Sikka, who too resigned on August 18, 2017.

According to the company’s 37th annual report, Ranganath’s annual compensation in fiscal 2017-18 was Rs 7.98 crore, including Rs 7.03 crore as salary, Rs 24 lakh as retrials and 71 lakh shares as stock options.

Ranganath, who owned 9,256 shares at the beginning of fiscal 2017-18, exercised 7,662 shares and held 16,918 cumulative shares at the end of last fiscal.

Commenting on the CFO’s contribution, co-founder and Board Chairman Nandan Nilekani said Ranganath had played a pivotal role in the company’s growth and success.

“During his 18-year long stint, I have seen Ranganath in leadership roles and delivering results with distinction. With him as CFO, the company had resilient financial performance, implemented capital allocation policy and earned respect of stakeholders for enhanced value creation,” said Nilekani.

Chief Executive Salil Parekh said that he worked with Ranganath over the past few quarters in shaping the company’s strategic direction.

“I admire Ranganath’s financial acumen, understanding of the company’s business and ability to deliver results. He played a crucial role and provided leadership. I am confident he will ensure a smooth transition,” added Parekh.

In a separate statement, Narayana Murthy said that Ranganath had worked with him for over 15 years and found him to him to be one of the best CFOs in the country.

“Ranganath’s ability to take tough decisions in challenging situations, his financial expertise, strong value system, unfailing courtesy and flawless execution always distinguished him as an exemplary leader and a key asset for Infosys,” said Murthy.

Lauding Ranganath for raising investor confidence in the company during the last five years by managing costs and margins, Murthy said the outgoing CFO was a rare individual who understood all stakeholders, including clients, delivery teams, employee aspirations, finance, investors, governance, law and the role of an ethical business.

“Ranganath is everything the idea of Infosys has always stood for. His departure is an irreplaceable loss for the company at this critical juncture. I wish him the best in his future endeavours, Murthy said.

As part of the leadership team, Ranganath has played key roles in consulting, finance, strategy, risk management and M&A (mergers and acquisitions) and worked with the board and its committees in formulating and executing the firm’s strategic priorities.

Ranganath was also the company’s chief risk officer from January 2008 to July 2013.

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Back series GDP calculation proved UPA years best: Chidambaram

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P Chidambaram
P. Chidambaram (File Photo)

New Delhi, Aug 18: Former Union Minister and senior Congress leader P. Chidambaram on Saturday challenged Prime Minister Narendra Modi’s government to match up with the UPA’s GDP rate in its fifth year and said that back series calculation of GDP has proved that the best years of economic growth were the UPA years 2004-2014.

Quoting figures of the recently released Ministry of Statistics’ data, Chidambaram said: “Truth has triumphed. The back series calculation of GDP has proved that the best years of economic growth were the UPA years 2004-2014.”

“The average growth rate under four governments since 1999 were– NDA I – 5.68 per cent, UPA I – 8.36 per cent UPA II – 7.68 per cent and NDA II – 7.35 per cent (four years),” Chidambaram tweeted.

“I wish the Modi government well in its fifth year. It can never catch up with UPA I, but I wish it catches up with UPA II,” he added.

Chidambaram said that the UPA governments delivered the best ever decadal growth and lifted 140 million people out of poverty and thanked the people for the opportunity to serve them for 10 years.

IANS

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