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CARE Ratings places NDTV’s bank facilities on ‘credit watch’, shares gallop

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The shares of Adani group’s takeover target satellite channel company New Delhi Television Ltd (NDTV) continued to hit the upward circuit on Monday with the price touching Rs 540.85.

The 52-week low price for the scrip was Rs 72.

Meanwhile, credit rating agency CARE Ratings has placed ratings assigned to NDTV’s bank facilities on credit watch with developing implications following takeover decision by the Adani group.

NDTV, which had postponed its 34th annual general meeting (AGM)to September 27 from the earlier fixed date of September 20, said it has completed the dispatch of notice for the shareholders meeting on September 3, 2022.

Due to change in the date of the AGM, the Register of Members and the Share Transfer Book of the Company will now remain closed September 20-27 (both days inclusive), NDTV had said.

The scrip has been on the upswing since August 23, the day on which the Adani group’s AMG Media Networks announced its subsidiary Vishvapradhan Commercial Private Ltd’s (VCPL) decision to exercise its rights to acquire 99.5 per cent of equity shares of RRPR Holding Private Ltd, the investment company of NDTV promoters – Prannoy Roy and Radhika Roy.

The VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into 99.99 per cent stake in the latter.

The VCPL has exercised its option in part, resulting in acquisition control of RRPR Holding — 1,990,000 equity shares or 99.50 per cent.

RRPR Holding holds 29.18 per cent stake in NDTV that has three national television channels.

This triggered the issue of open offer to acquire shares of NDTV from the public as per SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Placing the credit ratings of NDTV’s bank facilities on credit watch with developing implication, CARE Ratings said it will continue to monitor the developments in this regard and will take a view on the ratings once the exact implications of the acquisition on the credit risk profile of the company are clear.

According to CARE Ratings, the ratings continue to remain constrained by high exposure towards group companies and revenue concentration risk as the company majorly generates revenue from advertisement which in turn exposes the company’s revenue profile to the business cycle of the advertisers.

“The ratings are also constrained on account of uncertainty over ongoing litigations against the company and its promoters especially pertaining to tax demand, hence the impact of the same on operational and financial risk profile of the company is not clear,” CARE Rating said.

According to CARE Ratings, NDTV had a total investment of Rs 335.13 crore in its subsidiaries/joint ventures/associates as on March 31, 2022 (Rs 325.03 crore as on March 31, 2021) as against its tangible net worth of Rs 345.09 crore as on March 31, 2022, majority of which are in NDTV Networks Limited, having an investment of Rs 315.70 crore as on March 31, 2022 (NDTV Networks Limited have a negative net worth of Rs 28.48 crore as on March 31, 2022).

“There are a number of ongoing litigations against the company especially pertaining to tax demand, the outcome of which will be crucial, particularly in the matter pertaining to transaction with Universal Studios International BV (a General Electric company) wherein a tax demand of

Rs 450 crore had been raised against the company for AY 2009-10,” CARE Ratings said.

“Further, the company had also received demand notice from SEBI for alleged non-disclosure of tax demand dated November 22, 2019, against which the company filed an appeal and matter is likely to be listed on September 12, 2022. Company also received show cause notice from the Directorate of Enforcement (ED) for the alleged contraventions under Foreign Exchange Management Act, 1999 (“FEMA”),” the credit rating agency said.

The CARE Ratings said the company also received notice dated August 20, 2018, from SEBI in regard to alleged violation of Clause 36 of erstwhile Listing Agreement for non-disclosure of loan agreements entered into by Prannoy Roy, Radhika Roy and RPRR Holding with VCPL in 2009-10.

“Further, the investigation by CBI is also pending with respect to the FIR registered against the company, promoters and other officials on August 19, 2019, in a case of alleged violation of foreign direct investment rules in one of their companies under section of Indian Penal Code, 1980 and Prevention of Corruption Act, 1988. In addition to this, there are few other investigations also pending w.r.t. income tax demand. Any adverse developments in relation to these ongoing legal cases having a material impact on the operational or financial risk profile of the company shall remain negative from the credit perspective,” CARE Ratings said.

National

Ashish Shelar Orders Timely Honorarium Disbursal And SOP Reinforcement For Senior Folk Artists

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Cultural Affairs Minister Adv. Ashish Shelar on Tuesday directed the department to re-communicate instructions to all District Collectors regarding the Standard Operating Procedure (SOP) for disbursal of honorarium to senior folk artists. He also instructed that every senior artist must receive a written response to their application within the prescribed timeframe.

A review meeting was held at Mantralaya to assess the remuneration process for senior artists, during which Cultural Affairs Minister Ashish Shelar issued key directives. The application process for this year’s honorarium disbursal began today.

Noting that several complaints are received annually regarding delays and inconsistencies, the Minister instructed the Director of Cultural Affairs to ensure time-bound redressal of all grievances. He emphasized that every senior artist must receive a written response to their application within the stipulated timeframe to build trust and transparency in the system.

Minister Shelar also pointed out that the formation of remuneration committees for senior artists is still pending in many districts. In light of this, he stressed the need to re-communicate the Standard Operating Procedure (SOP) to all District Collectors to ensure uniformity and accountability in the implementation of the honorarium process across the state.

Deputy Secretary of the Cultural Affairs Department Mahesh Vavhal, Director of the Directorate of Cultural Affairs Bibhishan Chavare, Joint Director Shriram Pande, and other senior officials were present on the occasion.

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Ravindra Chavan, Trusted Lieutenant Of Maharashtra CM Devendra Fadnavis, Appointed BJP State Unit President

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Mumbai: Ravindra Chavan, known as a trusted lieutenant of Maharashtra Chief Minister Devendra Fadnavis, will take over as BJP’s state unit president on Tuesday.

The incumbent, Revenue Minister Chandrashekhar Bawankule, will hand over charge at a party conclave in Mumbai. The mantle is being handed to Chavan, whose grassroots planning ensured BJP’s impressive electoral performance in Thane and the Konkan belt, with an eye on the coming elections to the local bodies, according to party sources.

Chavan was the only candidate who filed his nomination papers on Monday at BJP state headquarters in the presence of Fadnavis, Bawankule and the party’s Maharashtra in-charge Arun Singh. Union minister Kiren Rijiju was present as the central observer.

Chavan represents Dombivali for the fourth term in the Assembly. He was a member of the Fadnavis cabinet between 2014 and 2019 and the Eknath Shinde-led government from 2022 to 2024. There was speculation of his elevation to the key party post started when he was denied a Cabinet berth after last year’s Assembly elections. He has been officiating as the working president of the state unit for the last few months.

The BJP is eyeing maximum number of municipal bodies in the Mumbai Metropolitan Region (MMR) comprising 8 municipal corporations. With the elevation of Chavan, known for his aggressive politics, BJP seems to be sending out a message to deputy CM Eknath Shinde-led Shiv Sena, which is likely to ask for lion’s share of seats for the civic polls. As an experienced leader, Chavan will shoulder his responsibilities with vigour and strength, Fadnavis asserted.

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Hyderabad Chemical Factory Blast: Death Toll Rises To 32 After 15 Succumb Overnight

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Hyderabad: The death toll in the explosion in a pharmaceutical unit at Pashamylaram near Hyderabad rose sharply to 32 on Tuesday, with about 15 injured succumbing at hospitals overnight.

The death toll in the worst industrial disaster in Telangana may go up further as the rescue workers continued searching for the bodies in the debris of a three-storey building, which collapsed under the impact of the blast.

A massive explosion had rocked Sigachi Industries Limited’s pharmaceutical factory at Pashamylaram industrial area in Sangareddy district, about 50 km from Hyderabad, on Monday morning.

The explosion in the Microcrystalline Cellulose (MCC) drying unit also left 35 workers injured. The condition of 11 of them is stated to be critical.

According to officials, 27 workers were still missing. They were feared trapped under the debris.

Personnel of the State Disaster Response Force (SDRF), Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), Revenue and police continued clearing debris.

The majority of the victims were migrant workers from states like Bihar, Uttar Pradesh and Odisha.

As many as 108 workers were at the factory at the time of the blast, which could be heard about five km away. The explosion triggered a huge fire, and 15 fire engines were used to douse the flames.

According to eye-witnesses, such was the impact of the explosion that workers were tossed in the air and fell several meters away.

As the bodies of some victims were blown to pieces or charred beyond recognition, the authorities were conducting DNA tests to establish their identity.

Chief Minister A. Revanth Reddy will be visiting the accident site on Tuesday. He will also call on the injured at a government hospital.

Health Minister Damodar Raja Narasimha told media persons at the spot on Monday that the cause of the explosion was not yet known. The company, which is 40-45 years old, manufactures Microcrystalline Cellulose, he said.

Labour Minister G. Vivek said prima facie it was not a reactor blast. Some problem in the air dryer system is believed to have resulted in the explosion and fire.

The state government appointed a high-powered committee to probe the disaster and its underlying causes.

The committer comprises the Chief Secretary, Special Chief Secretary (Disaster Management), Principal Secretary (Labour), Principal Secretary (Health) and Additional DGP (Fire Services).

According to the Chief Minister’s Office, the panel would also make recommendations to prevent the recurrence of such accidents.

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