Relief for BSNL, MTNL users: Prepaid validity extended till April 20


State-owned telecom operators and will extend validity period of their prepaid mobile services till April 20 and offer Rs 10 additional talktime even after zero balance, to enable users, especially poor and underprivileged, to stay connected during the 21-day nationwide


“This will enable poor people make calls for help even if they don’t have any balance left,” Communications Minister Ravi Shankar Prasad said in a tweet.



The minister also took stock of performance of essential services under the Department of Telecom (DoT) and Department of Post, with heads of circles from all states through a video-conference on Monday.


“During the video conference, took feedback on functioning of their essential services during #21daysLockdown from heads of circles of and India Post. Exhorted them to rise to the occasion and set new benchmarks in public service as #IndiaFightsCorona,” the minister tweeted.


In a statement, Bharat Sanchar Nigam Ltd (BSNL) said it will offer free validity extension for prepaid mobile subscribers who were unable to recharge after their validity expired during the period, and also provide free talktime worth Rs 10 to those with zero

Read More

What is Company Voluntary Administration?

Company Voluntary Administration, or CVA, is a legal agreement settled between a company and its creditors.

Essentially, what CVA does is it helps companies repay their debt without going into to administration, thus avoiding declaring bankruptcy. The company will pay debts over a set period of time.

The agreement between the two parties is based on having a vested interest in preserving the company, rebuilding sales and profits and then, of course, the company will repay the creditors over the set period.

It must be the case that 75 per cent of creditors need to be in agreement and in full support of the CVA.

Once the agreement has been made, the company can carry on trading as they usually would, the directors can conduct their usual duties and the personal guarantees usually will not get called in, which will give the business the chance to survive.

Who can get a CVA?

A CVA can only be proposed if a company is insolvent or contingently insolvent. It will be monitored by a supervisor who will be a licensed insolvency practitioner. The arrangement will usually last between 3 to 5 years, depending on a number of factors. It is therefore

Read More

Discoms’ outstanding dues to power gencos rise nearly 32% in January


Power producers’ total outstanding dues owed by distribution firms rose nearly 32 per cent to Rs 88,311 crore in January 2020 over the same month previous year, reflecting stress in the sector.


Distribution companies (discoms) owed a total of Rs 67,012 crore to power generation companies in January 2019, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).




The portal was launched in May 2018 to bring in transparency in power purchase transactions between the generators and discoms.




In January 2020, the total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 76,192 crore as against Rs 51,453 crore in the same month of the preceding year.




According to the latest data on the portal, outstanding dues in January has decreased over the preceding month. In December 2019, the total dues of discoms stood at Rs 86,948 crore.




However, the overdue amount in January increased over the preceding month, from Rs 75,930 crore in December 2019.


Power producers give 60 days to discoms for

Read More

Defaulting promoters may get lifeline, lenders may defer pledged share sale


Several promoter entities that are facing a deadline of March 31 to either repay loans or lose control over their companies, are likely to get a lifeline with public sector lenders planning a “deep restructuring” of their loans.


A banker said loan restructuring may be needed for some firms whose shares have been pledged as security for credit, and are finding it difficult to meet regulator norms like maintaining cover. “But this is not a blanket policy and will be implemented on a case-by-case basis,” he added.



A senior State Bank of India official said whatever changes in repayment done in restructured cases will not be considered as second restructuring. “There is case of disruption for three months due to which lenders may tweak schedules on case-by-case basis,” the official said.


Further, accounts granted relief will undergo supervisory review for justifiability on account of the economic fallout of Covid-19. “The intention is very clear not to push any non-performing asset under the carpet. Wherever there is genuine need, can go ahead with whatever they want to do,” SBI executive said.


ALSO READ: Hundreds of migrant workers defy

Read More

Don’t be complacent over Inheritance Tax warn accountants

Tax experts are reminding families and individuals not to neglect the importance of Inheritance Tax (IHT) planning, despite changes to the way it is taxed.

According to the latest data from HM Revenue & Customs (HMRC), the Treasury collected approximately £5.3 billion in IHT last year – up 13 per cent on the amount collected in 2016.

News of the rise comes just months after the residence nil rate band (RNRB) – an additional tax-free IHT allowance available to individuals and families who wish to pass property to their direct lineal descendants in their Wills – was increased from £100,000 to £125,000.

Peter McMahon, Tax Partner at Grunberg & Co said: “Individuals in England and Wales will normally incur IHT at a rate of 40 per cent on all estates valued at above £325,000. But by taking advantage of the RNRB, individuals can effectively increase this tax-free threshold to £450,000 if they intend to pass on property to children or grandchildren in their Wills,” Justin said.

“The new changes to the RNRB are even better news for married couples and those who are in a civil partnership.

“This is because such individuals can combine their allowances – meaning that couples

Read More