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November 2023

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Dentsu Appoints Sujit Vaidya as Chief Financial Officer for South Asia

Dentsu Appoints Sujit Vaidya as Chief Financial Officer for South Asia

Dentsu has announced the appointment of Sujit Vaidya as the Chief Financial Officer (CFO) for South Asia, effective 1 December 2023.

In this role, Vaidya will partner with dentsu’s business teams across South Asia to orchestrate the financial strategy and steer the finance function. He will also shape the financial narrative of dentsu’s evolving business model and contribute significantly to the network’s growth and innovation trajectory.

He brings over 30 years of experience as a certified chartered accountant, having previously served as CFO for Mahindra Holidays & Resorts India and Disney in India. His illustrious career includes pivotal roles at organisations such as P&G, BCG, and BP where he has consistently played a key role in financial success and strategic direction. 

Commenting on Vaidya’s appointment, Harsha Razdan said, “Sujit’s appointment aligns seamlessly with our vision for financial excellence and strategic foresight. His strategic acumen and financial leadership will play a crucial role in realizing our ambitious goal of achieving 50% of revenue from Customer Experience (CX) by 2026. We eagerly anticipate leveraging Sujit’s expertise on this exciting journey towards continued growth and success.”

Vaidya added, “In my conversations even before officially joining dentsu, what came across clearly to me is that dentsu is not just a business. The perspective is not merely about delivering services but creating outcomes and solutions for clients. My mandate, therefore, is not just managing finances but helping create strategies to invest in and create the future. I believe that dentsu has a unique opportunity to shape the future of the industry and I am excited to be a part of it.”

He steps into the role previously held by Asha Suvarna, who left dentsu to pursue new opportunities in September this year. He reports to Harsha Razdan, Chief Executive Officer, dentsu, South Asia, and Paul Koppelman, CFO APAC, dentsu.

money

RBI Invests 81.43% Of Foreign Currency Assets In Overseas Securities

The deposits kept with other central banks and the Bank for International Settlement (BIS) declined to 13.49 per cent at the end of September from 14.82 per cent at the end of March

 
 
 

The proportion of India’s foreign currency assets invested in overseas securities increased to 81.43 per cent by September, up from 80.76 per cent in March, as per the Reserve Bank of India’s (RBI) Report on Management of Foreign Exchange Reserves.

The percentage of funds held in deposits with other central banks and the Bank for International Settlement (BIS) decreased to 13.49 per cent by the end of September, down from 14.82 per cent in March 2023.

Conversely, the proportion of funds held in deposits with overseas commercial banks rose from 4.42 per cent in March to 5.08 per cent in September, as indicated in the report.

The foreign currency assets increased to USD 521.36 billion by the end of September from USD 509.69 billion at the end of March.

The RBI’s gold reserves saw an increase to 800.79 tonnes which includes gold deposits of 39.89 tonnes by the end of September, compared to 794.64 tonnes at the end of March.

The share of gold (in value terms) in total foreign exchange reserves decreased to 7.37 per cent by the end of September from 7.81 per cent in March 2023.

It’s noteworthy that 388.06 tonne of gold are held overseas in secure custody with the Bank of England and BIS, while 372.84 tonnes of gold are held domestically.

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Gross Direct Tax Collections Rise About 18% This Fiscal

The rates of Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections grew 7.13 per cent and 28.29 per cent, respectively

A total of Rs 11.07 lakh crore (gross) worth of direct taxes have been collected so far in the current financial year 2023-24, representing a 17.95 per cent increase on a yearly basis, according to provisional figures put out by the Central Board of Direct Taxes (CBDT) on Tuesday.

Tax collection, net of refunds, stands at Rs 10.60 lakh crore, which is 21.82 per cent higher than the net collections for the corresponding period of last year. This collection is 58.15 per cent of the total Budget estimates of direct taxes for the financial year 2023-24.

The rates of Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections grew 7.13 per cent and 28.29 per cent, respectively.

After adjustment of refunds, the net growth in CIT collections is 12.48 per cent and that in PIT collections is 31.77 per cent.

The provisional figures for direct tax collections were up to 9 October.

Over the last few years, various efforts have been made to increase the tax base and improve compliance.

For example, in the entire financial year 2022-23, the total gross GST collection stood at Rs 18.10 lakh crore and the average gross monthly collection for the full year was Rs 1.51 lakh crore. The gross revenues in 2022-23 were 22 per cent higher on a yearly basis.

Notably, in April this year, the gross GST collection was at an all-time high of Rs 187,035 crore. (ANI)

deal

Zydus, Torrent Pharma Sign Licencing Agreement For Liver Disease Pharmaceuticals

The companies have agreed to co-market Saroglitazar Mg throughout the nation. Torrent released a statement stating that it will have semi-exclusive rights to co-market the product in India under the Vorxar brand

Torrent Pharmaceuticals and Zydus Lifesciences signed a licencing agreement to co-market a medication for the treatment of non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steato hepatitis (NASH).

The companies have agreed to co-market Saroglitazar Mg throughout the nation. Torrent released a statement stating that it will have semi-exclusive rights to co-market the product in India under the Vorxar brand. Zydus will continue to market the medication under the brand names Lipaglyn and Bilypsa, which it launched. Aman Mehta, director of Torrent Pharmaceuticals, stated that the agreement will strengthen the company’s gastroenterology business.


It also stated that Torrent will pay Zydus milestone payments contingent on reaching pre-established milestones as well as upfront licencing fees. Saroglitazar Magnesium, the only medication for NASH and NAFLD that is currently approved in the nation, is probably going to be essential in controlling and reducing the effects of these common and progressive liver diseases. As of now, no medication is authorised for the treatment of NASH and NAFLD in any other country.

tata

Tata Group Acquires 100% Equity Shares In Wistron

The deal is reported to be valued at USD 750 million in total, including a USD 550 million inter-corporate loan that the parent company provided to Wistron India

The Tata Group has entered into a legally binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong in order to obtain a 100% equity stake in Wistron Infocomm Manufacturing (India). This agreement allows the Tata Group to formally become an iPhone assembler within the Apple supply chain.

“A significant accomplishment for us is the signing of the Share Purchase Agreement to gain Wistron InfoComm Manufacturing (India). With the government’s strong support, the EMS (Electronic Manufacturing Services) sector in India is expected to grow,” Randhir Thakur, CEO and Managing Director of Tata Electronics, said in a statement.

“Our goal is to improve our position in the manufacturing industry. I appreciate all of the Wistron team’s cooperation during this process,” he continued. On 27 October, the Tata Group formally revealed its acquisition plan for Wistron India, stating that it would pay USD 125 million for a 100 per cent ownership stake in the company’s assembly lines.

The deal is reported to be valued at USD 750 million in total, including a USD 550 million inter-corporate loan that the parent company provided to Wistron India. The Tata Group began producing a semi-finished iPhone SE model in India when it opened a casings facility in Hosur, Tamil Nadu, to join the iPhone supply chain.

The Tata Group will be able to begin producing iPhones from start to finish in India with the purchase of the Wistron unit, making it the first Indian company to join the ranks of Foxconn, Pegatron, Luxshare and Wistron in the iPhone manufacturing industry.

byjus

Byju’s Lenders Wins Battle For Unit Control, $1.2 Bn Loan Default

When the company’s online learning boom of the pandemic era fizzled out, lenders have been pressing hard for the USD 1.2 billion loan to be repaid

A Delaware judge stated that the lenders to Byju’s had legitimately cited a USD 1.2 billion loan default when seizing control of a division of the education technology provider, Bloomberg reported.

Delaware Chancery Court Judge Morgan Zurn decided that the lenders, which include Redwood Investments LLC and Silver Point Capital LP, were within their contractual rights to appoint their nominee to the board of Byju’s Alpha, a special-purpose company established for financing purposes, in place of a relative of the company founder, Byju Raveendran.

Zurn denied Byju’s claim that Timothy Pohl, chosen by lenders to manage the special-purpose company, lacked the right authorization to assume control. The judge stated in a 41-page decision that Pohl was “effectively seated” as the only director of Byju’s Alpha as a result of the defaults.

When the company’s online learning boom of the pandemic era fizzled out, lenders have been pressing hard for the USD 1.2 billion loan to be repaid. Government agents searched Byju’s offices this year while the company worked to sell assets and resolve the loan issue. Some investors have also sold their shares in one of the biggest ed-tech companies in the world as a result of the lender dispute.

Earlier this year, an attorney representing the lenders stated that Byju’s Alpha was meant to act as a holding company to safeguard their interests in the lawsuit. In a May court hearing, Brock Czeschin, an attorney representing Red Tree and Silver Lake, stated that the lenders had no intention of taking over the entire ed-tech business.

The lenders’ default arguments are unfounded. According to Zurn’s 2 November ruling, the loan terms permitted lenders to seize pledged Bjyu’s Alpha shares in the event of a default. An announcement of the judge’s decision in March revealed that the lenders had received a notice of default from a company unit when it was unable to secure the Indian government’s support as a loan guarantor.

house

NRI Investments To Hit 20% Of All Investments In Real Estate Sector By 2025: Report

The survey report states that this percentage has risen steadily, to 15 per cent as of now and predicts that NRIs will account for 20 per cent of the Indian real estate market by 2025

The share of Non-Resident Indians (NRIs) in the Indian real estate market has increased dramatically over the last five years due to their consistent investment growth, according to ‘The NRI Real Estate Report 2023’ published by NoBroker.

NRIs made up about 10 per cent of all real estate investments in India between 2019 and 2020. Still, the survey report states that this percentage has risen steadily, to 15 per cent as of now and predicts that NRIs will account for 20 per cent of the Indian real estate market by 2025.

“A number of factors, including higher rental yield, the Indian rupee’s ongoing depreciation, supportive government policies and the real estate industry’s tenacity in the face of hardship are primarily responsible for this surge. In addition to financial considerations, the emotional ties that the NRIs have with their home country play a significant role in these investments,” said Saurabh Garg, co-founder and chief business officer of NoBroker.com.

Thanks to their vibrant startup ecosystems, dynamic real estate markets and cosmopolitan lifestyles, Bangalore and Mumbai have become popular choices for foreign direct investment (NRI) buyers. Bangalore is the top choice for 29 per cent of NRI investors, with Mumbai coming in second with 24 per cent of NRI buyers.

The desire for larger living areas is evident in the demand for 3BHK apartments, which has outpaced that for 1BHK and 2BHK apartments. Over the past year, there has been a rise in demand for vacation homes and property management services have become more popular. It’s interesting to note that 26 per cent of NRI purchasers look for homes with budgets over Rs 1 crore, suggesting a growing preference for upscale and luxurious real estate options.

Due to technology, higher rental yields and emotional connections to India, NRI interest in Indian real estate has increased. Technology has also facilitated the purchase, sale and management of real estate, lowering dependency on outside parties and fostering transparency. Overall, there is an increasing need for property management services to give NRIs hassle-free property management.

raid

ED Continues Raid On Kerala’s Kandala Service Cooperative Bank

 The ED  raided the residence of N Bhasurangan, a local leader of the CPI and the bank’s former president, as well as several other locations near Kattakada

The Enforcement Directorate (ED) raid continued for the consecutive second day on Kandala Service Cooperative Bank in the district of southern Kerala. In addition to this location, the ED also raided the residence of N Bhasurangan, a local leader of the CPI and the bank’s former president, as well as several other locations near Kattakada.

Local CPI leader Bhasurangan was kicked out of the Left party’s primary membership as the raids went on. A Thiruvananthapuram district committee member of the party informed the media of his expulsion. A member of the CPI’s district committee stated that the party had previously taken action against Bhasurangan.

Additionally, Bhasurangan lost his job as convenor of the Kerala Co-operative Milk Marketing Federation’s (KCMMF) Administrative Committee. KCMMF is a company that sells goods under the Milma brand.

The ex-president and a few other bank officials were allegedly accused of committing irregularities totalling several crores, which prompted the ED raids that have been going on for more than a day.

building

IT Hub Drives Home Rent Up By 30% In First 9 Month Of 2023: Anarock

The Bengaluru neighbourhood of Whitefield saw the largest increase in home rent, at 31 per cent and the percentages that followed were 27 per cent in Hyderabad’s Sarjapur Road and 24 per cent in Gachibowli

The top seven Indian cities’ home rent increased by 30 per cent in the first nine months of 2023 compared to the same period the previous year, driven primarily by IT hubs, according to data released by real estate consultancy Anarock on Thursday. Pune, Hyderabad and Bengaluru saw the biggest rent increases.

The Bengaluru neighbourhood of Whitefield saw the largest increase in home rent, at 31 per cent. The percentages that followed were 27 per cent in Hyderabad’s Sarjapur Road and 24 per cent in Gachibowli. Bengaluru, Hyderabad, Pune, National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata and Chennai are the top seven cities according to the data. The Wagholi area of Pune saw an 18 per cent increase in rent, which drove the overall increase.

One of the most amazing recovery stories of the post-pandemic housing sector is residential rents, according to Anuj Puri, chairman of Anarock Group, following an almost terminal decline during the first and second Covid-19 waves.

Bengaluru remains distinct among the top seven cities, having already gained attention for its outrageous rental prices following the Covid-19 pandemic. Notwithstanding industry efforts to tighten restrictions, the fact that the next two cities with the highest growth rates in rental values are also heavily focused on IT/ITeS highlights the core resilience of the Indian infotech sector.

Bengaluru was the top city in terms of rental yield or the annual return on capital invested in a property. At the end of the September quarter, it reported a 4.35 per cent rental yield. In Mumbai and Gurgaon, it was followed by 4.05 per cent and 4 per cent, respectively.

The yield exceeded the 3 per cent reported before the Covid-19 pandemic. Due to the low hiring in the final quarter of the year, rent in Indian cities has stabilised as of late. However, they should start to pick up in 2024’s first quarter, the report added.

vi

Bombay HC Orders Tax Refund Of Rs 1,128 Cr To Vodafone Idea

A division bench of Justices KR Shriram and Neela Gokhale also expressed strong opposition to the assessing officer’s actions, citing laxity and lethargy in failing to issue the final order within the allotted period of 30 days, resulting in significant financial losses for the public and exchequer

Bombay High Court ordered the Income Tax department on Thursday to reimburse Rs 1,128 crore to Vodafone Idea, paid by the telecom operator during the assessment year 2016–2017.

In its ruling, the HC said that the assessment order issued by the department in August of this year was time-barred and therefore could not be upheld.

A division bench of Justices KR Shriram and Neela Gokhale also expressed strong opposition to the assessing officer’s actions, citing laxity and lethargy in failing to issue the final order within the allotted period of 30 days, resulting in significant financial losses for the public and exchequer.

The Vodafone Idea petitioned the court, arguing that the I-T department had not reimbursed it for the money it had paid for the assessment year 2016–2017, which exceeded the actual tax that was owed on its income. The court granted the petition.

In its ruling, the bench observed that the Vodafone case was fairly straightforward and that it was obliged to take into account the assessing officer’s total apathy and negligent actions in carrying out his duties in compliance with the Income Tax Act.

The order stated that any dereliction or remissness on the part of the officials tasked with upholding the strict contours and spirit of the law impacts the exchequer and has a major impact on the prosperity and economic stability of the country.

It further stated that any effective system established by the government for the transparent and efficient administration of tax laws and regulations has the propensity to be destroyed and rendered ineffective by laxity in this regard.

The court advised that a thorough investigation be started into the assessing officer’s alleged disregard for the Income Tax Act’s provisions.

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