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Corporate debt restructuring refers to the reformation of a business entity that is in financial trouble. The main aim refinances its existing debt obligations in order to gain more flexibility in the short term and make their debt load more manageable.
This process is usually done by the creditors and the management of the company, which is in distress. It is outside the purview of BIFR (Board for Industrial and Financial Reconstruction), DRT and other legal proceedings.
What is Debt?
Debt is money borrowed by one party from the other to meet the financial need. Many organizations use debt to purchase goods and services that they cannot pay for in cash.
The objects of the CDR mechanism
The objective of the Corporate Debt Restructuring (CDR) framework is to;
“To ensure a timely and transparent mechanism for the restructuring of corporate debts of viable entities facing problems, for the benefit of all concerned.”
“To aim at preserving viable corporates that are affected by certain internal and external factors”.
“To minimize the losses to creditors and other stakeholders through an orderly and co-ordinated restructuring programme”.
How to Achieve Debt Restructuring:
Companies can achieve debt restructuring by negotiating directly with creditors to restructure their loan payment terms. Debt restructuring is sometimes imposed on a company by its creditors if it cannot make its scheduled debt payments. In CDR financial institutions and/or banks restructure the debt of companies who facing financial distress. Here are some ways in which this can be achieved:
1. Debt for Equity Swap:
This is usually the case with companies with a large base of assets and liabilities. Where the creditors feel that bankruptcy is not a beneficial step for the company as well as the creditors. Creditors can agree to forgo a certain amount of outstanding debt in exchange for equity in the company. Where forcing the company to go bankrupt would create little value for creditors.
2. Bondholder Haircuts:
Companies with outstanding bonds can negotiate with their bondholders to offer repayment at a “discounted” level. This can be achieved by reducing or omitting the payment of interest or principal.
3. Informal Debt Repayment Agreements:
This is a more economical and favorable method. This can be done by reaching out to creditors directly and negotiating new terms of repayment. The debt restructuring company may request for lenient repayment terms and even allow some part of its debt to be written off.
A relative of mine just bought a new Android tablet a while back during Amazon’s festival offer. I was later told about this purchase that this new Android tablet is also not expensive, and it has a good configuration along with having a big screen. If you want to watch any of your favorite movies on TV, then for this you have to go to your drawing room and look in a particular posture, but at such time Android tablet is best suited for watching drama and listening to music in bed. You can use it as a portable screen when needed.
In my relative’s view, today’s Android tablet is a pure entertainment product. The old-fashioned application optimization problem limits the performance of this type of device. A tablet that shares a set of application ecology with a mobile phone will always lag behind in optimization priority. Yes, there are still a large number of applications that are not compatible with tablets.
Android 12L Launch
Last month at the end of October 2021, Google announced the launch of Android 12L.
What’s in 12L?
12L is an operating system update that will work better on bigger screens. The 12L refined the UI on the larger screen in notifications, quick settings, lock screen, overview, home screen, and more. For example, on screens above 600dp, the notification shade, lock screen, and other systems use a new two-column layout to take advantage of Surface screen area. System apps are also optimized.
Large screen layouts display more content in a two-column layout.
L stand for?
The “L” in Android 12L stands for “device with a larger screen” – but Google hasn’t confirmed that yet.
Android 12L availability?
Google said that Android 12L will be released to consumers in early 2022.
An Android 12L beta?
Yes. A developer preview is available for people to test.
Devices support Android 12L?
According to Google they said they are already working with OEM partners to bring these features to their big screen devices – watch out for the developer preview of the 12L coming soon to the Lenovo P12 Pro. With more features coming to devices in the coming few months, now is a great time to optimize your apps for the bigger screen.
Google 12L vs iPad
According to Google, there are already over 250 million large screen devices equipped with the Android system, and the launch of Android 12L at the moment is indeed a good opportunity for that.
The recovery of the tablet market has prompted Android tablet maker manufacturers such as Xiaomi, Huawei and Realme to make a comeback. The global tablet market will continue to improve in the times to come.
The 12L will have a better chance of trying it out on a folding screen mobile phone. However, it has been 3 years since Samsung’s first Galaxy Fold folding screen mobile phone was launched. Such products have now become more popular as they become more mature.
Multinational Corporations may be subject to minimum tax of 15% from 2023. It may be an important and major step of OECD towards in reform of the worldwide tax system.
The system, sponsored by 136 nations, including India. In this reform it was tried to ensure an honest sharing of Taxes for nations where multinationals and worldwide advanced organizations, like Netflix, Google acquire incomes.
The Landmark deal assented by 136 nations and jurisdiction addressing over 90% of worldwide GDP. Most useful MNCs are round the world and it was also ensured in landmark deal that these corporation pay a fair share of tax wherever they operate and generate revenue.
The two-pillar solution is expected to come out in the G20 Finance Ministers’ meeting in Washington DC on 13 October, then at the end of the month at the G20 Leaders’ Summit in Rome.
It is also said in OECD statement, with effective implementation in 2023 various countries are aiming to sign a multilateral convention during 2022.
An enterprise or corporation in India which owned by the government, and in which the government has a majority stack of 51% or more, can be classified as a public sector undertaking (PSU) or public sector enterprise.
All government owned corporations, statutory corporations and a nationalized company is called PSU. These enterprises or corporations are wholly or partly owned directly by the Government of India or by one or both of the other State or Territorial Governments together.
The following terms are used for Public Sector Undertakings:
CPSU : Central Public Sector Undertakings
CPSE : Central Public Sector Enterprises
SLPE/SLPU : State Level Public Enterprises/Undertakings
1. CPSU : Central Public Sector Undertakings
Companies in which the majority stack is either 51% or more with the Central Government or any other CPSE.
As of March 2019, there were a total of 348 CPSE companies in India. However, this count does not include the count of insurance companies. If we talk about operational enterprise then this number is about 249.
CPSU companies are like National Thermal Power Corporation (NTPC), National Hydro-electric Power Corporation (NHPC), Nuclear Power Corporation (NPC), Neyveli Lignite Corporation (NLC), North-eastern Electric Power Corporation (NEEPCO), Damodar Valley Corporation (DVC), Power Grid Corporation (PGCIL), Coal India Limited (CIL), and the Railways, and includes their respective successors, assigns and permitted substitutes, BSNL.
2. CPSE : Central Public Sector Enterprises
Companies in which the Central Government holds 100% shares.
The Government of India approved the introduction of the “Maharatna” category for Central Public Sector Enterprises (CPSEs) on 2009. The main objective of CPSEs is to empower, emerge as global giants and expand their operations globally.
Can invest Rs. 5000 crores in one project.
Maharatnas companies are like NTPC Limited, Steel Authority of India Limited, Indian Oil Corporation Limited, Oil & Natural Gas Corporation Limited etc.
Navratna
The Government of India the “Navratna” category for Central Public Sector Enterprises (CPSEs) in 1997. The main objective of CPSEs is to gain comparative advantage as global giants and expand their operations globally.
The Government of India introduced the ” Miniratna” category for Central Public Sector Enterprises (CPSEs) in 1997. The main objective is to further turning the public sector into a profit making enterprise by making it more efficient and competitive.
Miniratna Category – I
Category-I companies are such Miniratna, which have made consistent profits in the last three years. The pre-tax profit should have been greater than or equal to Rs 30 crore at least once out of three years and the company should have a positive net worth.
Category-I companies are like Airports Authority of India, Indian Railway Catering & Tourism Corporation Limited etc.
Miniratna Category – II
Category-II companies are such Miniratna, which have made consistent profits in the last three years. The company should have a positive net worth.
Category-II companies are like Bharat Pumps & Compressors Limited, Broadcast Engineering Consultants (I) Limited etc.
3. SLPE/SLPU : State Level Public Enterprises/Undertakings
Companies in which the majority stack is either 51% or more with the State Government or any other CPSE.
After India’s independence in 1947, only five central public sector enterprises were left, which were formed by the British government in India and by 2019, the number of PSUs was around 348.
This Rent Agreement is made on this —- Day of —- 2021 by – (Name of Landlord) S/o __(Fathers Name) R/o (residential address of Land Lord), herein after called the Lessor / Owner, Party Of the first part
AND
(Name Tenant) S/o (Father name of Tenant) R/o (residential address of Tenant) herein after called Lessee/Tenant, Party of the Second Part.
Whereas the expression of the term, Lessor/Owner and the Lessee/Tenant Shall mean and include their legal heirs successors, assigns, representative etc.
Whereas the Lessor /Owner is the owner and in possession of the property –(address of Property to be given on) — and has agreed to let out the one office Room, one Toilet & Bathroom Set on said property, to the Lessee/Tenant and the Lessee/Tenant has agreed to take the same on rent of Rs. _____ (Rupees ______ Only) p.a..
NOW THIS RENT AGREEMENT WITNESSETH AS UNDER:
That the Tenant/Lessee shall pay as the annually rent of Rs. _____/- (Rupees _____ Only) p.a.
That the Tenant /Lessee shall not sub–let or let rented property to anyone else under any circumstances without the consent of Owner.
That the Tenant / Lessee shall abide by all the byelaws, rules, and regulation, of the local authorities in respect of the rented property and shall not do any illegal activities in the said demised premises.
That the Tenant/Lessee shall not be entitled to make structure in the rented premises except the installation of temporary decoration, wooden partition/ cabin, air conditioners etc. without the prior consent of the owner
That the Tenant/Lessee shall permit the Lessor/Owner or his Authorized agent to enter in to the said tenanted premises for inspection/general checking or to carry out the repair work, at any reasonable time.
That the Tenant/Lessee shall keep the said premises in clean & hygienic condition and shall not do or causes to be done any act which may be a nuisance to other.
That the Lessee shall pay the ____ month’s advance rent to the Lessor the same shall be adjusted in monthly rent.
That both the parties have read over and understood all the contents of this agreement and have signed the same without any force or pressure from any side.
In WITNESS WHEREOF the lessor/Owner and the Tenant / Lessee have hereunto subscribed their hand at __(City) on this ___ day of ____, 2021 above Mentioned in presents of the following Witnesses.
If you have investment in Cryptocurrency, then this Could Be the Most Important Article For You.
Most Experts agree that profit or loss in digital currency like BIT COIN and other Crypto Currencies, must be accounted for in your Income Tax Return (ITR). Although, there is no clarity on whether the cryptographic money must be accounted for in ITR regardless of whether there has been no gain or loss from the same.
According to current Income Tax Law, an individual is needed to report all of his/her foreign Assets irrespective of his/her Income Level. So, do you need to report your cryptographic money Investment while you filing your ITR for the Financial Year 2020-21?
Here is the rule that the current Income Tax Rules state about reporting of cryptographic money belongings in your ITR:
1) If a Individual’s Net Taxable Income exceeds Rs 50 lakh, then, at that point, he/she should report their Assets and liabilities in schedule AL of the ITR.
2) Similarly, if an individual is holding foreign assets for example, stocks listed in the US, then, at that point, he/she needs to report all of his assets and liabilities irrespective of total income Financial Year. An individual having foreign assets or who is a beneficiary of any assets or having signatory authority in any record situated outside India is compulsorily needed to report in ITR even his/her gross income is below the basic exemption limit.
Your account gets locked for multiple unsuccessful attempts. Income Tax Department is unlocking the accounts from time to time. You will receive a popup message and you will also receive an email notification when the account is unlocked. The account can be unlocked by contacting the helpline number at
18001801961, 08:00 hrs – 22:00 hrs (Monday to Saturday)
Will my account get locked if I enter an incorrect password?
Yes, the account will be locked after registering 5 unsuccessful attempts to log in. The account can be unlocked using the “Unlock Your Account” functionality or it will be automatically unlocked after 30 minutes.
When will the problem be solved?
There is no option if the system pops-up message as “Your e-filing account has been locked, try again after four 30Minutes”. You have to wait for a popup time, after end a popup time you can update the new password using the forget facilities on the e-filing portal.
Despite having a hefty salary, the bank refuses to give loans to many customers. And when we ask the reason for the bank, the bank’s answer is that your CIBIL score is not good or it is negative. The bank checks the CIBIL score of the customers even before issuing the credit card. Actually, in this world of digital transactions, all kinds of facilities are now available online. Any transaction you do with the bank is seen at the time of taking the loan. Often the bank gives the loan to the customer only on the basis of the credit score.
The CIBIL score can be anywhere between 300 and 900, with 900 indicating the maximum creditworthiness. A CIBIL score of 750 or above in your credit report is ideal and will help you qualify for personal loans and credit cards.
Moreover, banks will not hesitate to give you a loan. Often people do not take loans and make payments on time. Late payment of EMI, non-payment of credit card on time, such steps adversely affect the CIBIL score.
Financial discipline means having a good credit score and it should not be a hindrance if you apply for any type of loan. For example, if you are going to marry a partner who is a defaulter on a credit card or personal loan and you want to take a joint home loan with him for a new house. Now a very difficult situation may arise for you. Might be possible, because of the partner’s credit score, the dream of your own house may remain incomplete.
What and Why credit score is important in CIBIL report:
CIBIL is the largest and oldest credit bureau in the country, having entered the market in the year 2000. It controls about 90 percent of the credit information market.
CIBIL or Credit Information Bureau (India) Limited is a credit bureau that calculates and maintains credit scores. CIBIL is the oldest, but there are three more credit bureaus that create your credit report – Experian, CRIF highmark and Equifax. Each credit bureau calculates your credit score on its own based on the data that banks provide to them from time to time.
Click Here to KnoW about EXPeriaN
ExperiaN is a leading global information services company, providing data and analytical tools throughout the world.
Experian is a secure and universally recognized credit announcement agency that provides professional credit assistance. Its services are ideal for users who need to increase their credit score by building a solid credit outlook. www.experian.in
A good credit score increases the chances of your loan application being approved.
But there is no guarantee that you will get a loan on the basis of a good credit score. Apart from the credit score, the loan income ratio of the applicant i.e. what percentage of your income is you paying towards current EMI (if any), job record, profession etc., also before the bank sanctions or rejects the loan is checked.
Needy of money but low CIBIL score
There are several ways in which you can choose to raise your low CIBIL score to a high CIBIL score.
You can start paying your credit card bills and loan EMIs on time. You should avoid making late payments under any circumstances. You can avoid excessive reliance on credit and keep the credit utilization ratio below 25%. If you find any incorrect information on the credit report, report it to the credit bureaus as soon as possible. For this, keep checking your credit score from time to time and if it is low, see if there is any wrong information in the report. You should not apply for a loan or credit card multiple times in a short period of time. It is advised to apply once after six months.
You shouldn’t close your oldest credit card. The longer your credit history, the more trust the bank has on you.
Maintain a balance in credit between secured credit (home loans, card loans, etc.) and unsecured loans (personal loans, credit cards, etc.).
Credit card limit is decreasing in COVID pandemic, know what you should do?
Due to the COVID pandemic, many challenges have come in the lives of common people. The biggest problem in this is about cash. The figures of withdrawing money from Provident Fund show that people are struggling with lack of money. However, all efforts have been made by the Reserve Bank to overcome this crisis.
The credit card limit is being reduced primarily for those customers who are availing the three-month moratorium on loan repayments. Banks believe that such customers will be short of money. In such a situation, the customer will use the credit card to meet the financial needs and there will be a delay in payment. Similarly, the limit is being cut for customers not using their credit cards.
If you want to maintain the credit card limit, then pay the credit card bill on time as soon as you spend the card money. If you spend more than 50% of the amount for a few months and pay on time, your credit limit will never be in trouble. With this your CIBIL score will also be correct.
