Rating models for MSMEs need to be revisited amid Covid-19 crisis: Experts

The credit rating models for

micro, small and medium enterprises should be revisited in the wake of the crisis as these companies are currently facing the problem of capital erosion, financial experts said on Thursday.

Speaking at a webinar organised by Indian Chamber of Commerce, credit information company TransUnion CIBIL managing director and CEO Rajesh Kumar said the play an important role in the economy and their rating models should be looked into afresh.

“All rating models have to be revisited in the present scenario arising out of the pandemic. This is more so because capital erosion of the entities has taken place,” Kumar said.

He also called for the availability of data from the GST system and payment history of the MSMEs, which would help the rating firms to estimate the probability of defaults.

According to him, access to GST database will be helpful in getting the invoices and understanding the production cycles, supplies, cash flows and bank statements.

“All this information will help estimate the probability of default,” he said.

Of the 50 million in India, only ten

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Tata Steel BSL slips into red, posts Rs 650 cr net loss in June quarter

Ltd on Thursday reported a consolidated net loss of Rs 650 crore in the quarter ended June 30, mainly on account of reduced income.

The company had posted a net profit of Rs 111 crore during the same quarter a year ago, said in a BSE filing.

Total income fell to Rs 2,710 crore during the quarter under review from Rs 4,359 crore in the year-ago quarter.

The company’s total expenses stood at Rs 3,360 crore as compared with Rs 4,318 crore in April-June of 2019-20 fiscal.

further said the outbreak of Covid-19 pandemic and ensuing mobility restrictions to ensure the health and safety of employees and other stakeholders impacted the company’s crude steel production during April, May, and part of June 2020.

Crude steel production during June quarter stood at 0.66 million tonnes.

“During the quarter ended June 30, 2020, the company incurred fixed production overheads (including depreciation) amounting to Rs 681 crore,” it said.

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Italy Senate Paves Way For Salvini Migrant Trial

Italy’s Senate voted on Thursday to strip far-right chief Matteo Salvini of his parliamentary immunity, paving the way for him to face trial, for a second time, over allegedly illegally detaining migrants at sea.

Salvini, a senator, now looks set for a potentially career-derailing case on charges that could see him serve up to 15 years in jail if convicted.

The Senate voted 149 to 141 to strip Salvini of his immunity, with one abstention.

“I am proud to have defended Italy. I would do it again and I will do it again, also because just this July the arrivals are six times those seen in the same period a year ago, with the League party in government,” a defiant Salvini told the Senate after the vote.

The head of the anti-immigrant League party is already set to stand trial in a separate but similar case.

Prosecutors in the Sicilian city of Palermo accuse Salvini of abusing his powers as then-interior minister in August 2019 to illegally prevent more than 80 migrants, rescued in the Mediterranean, from disembarking from the Open Arms charity ship.

Ministers cannot be tried for actions taken while in office unless their parliamentary immunity is revoked

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Govt extends deadline for filing income tax returns for FY19 till Sept 30

The government on Wednesday extended the deadline for filing returns for 2018-19 fiscal by two months till September 30.

“In view of the constraints due to the Covid pandemic & to further ease compliances for taxpayers, CBDT extends the due date for filing of Returns for FY 2018-19 (AY 2019-20) from 31st July, 2020 to 30th September, 2020, the Department said in a tweet.

This is the third extension given by the government for taxpayers to file both original and revised tax returns for 2018-19 fiscal.

In March, the due date was extended from March 31 to June 30. Later in June, it was again extended by a month till July 31.

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