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No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine

Leave a Comment / By / Governance Community

Infosys is facing a substantial tax challenge from the Indian government, which has refused to reduce a ₹32,000-crore ($4 billion) tax demand related to GST regulations. The demand, issued last month, pertains to services received from Infosys’s overseas branches between July 2017 and the fiscal year 2021-22. This amount represents about 85% of Infosys’s revenue for the quarter ending June 30. Infosys has requested a ten-day extension to respond after recent discussions with Indian Income Tax department officials. Despite this, the Indian authorities have indicated they will not ease the demand. In a recent update, Infosys confirmed that the tax demand for the 2017-18 financial year, totaling ₹38.98 billion, has been resolved. The company maintains it has met all tax obligations and adheres to both central and state regulations. In addition to this domestic issue, Infosys has also faced scrutiny from Canada. In May 2024, the Canadian government imposed a fine of CAD 134,822.38 (₹82 lakh) on Infosys for underpaying the employee health tax for the fiscal year ending December 31, 2020. Infosys disclosed this penalty in a regulatory filing received from Canada’s Finance Ministry on May 9. The broader IT sector has also been impacted, with significant declines in stock prices for other major players like Tata Consultancy Services and Satyam Computer Services. This downturn follows Infosys’s stock performance, which saw profit-taking after meeting market expectations and experiencing a prior price surge. Reference by Mint

Investmint Halts Trading Operations to Focus on Merger and Acquisition Strategy

Leave a Comment / By / Human Resource Community

Investmint, a signal-based trading app, has ceased its trading services to concentrate on merger and acquisition (M&A) opportunities, as reported by Entrackr. The company is actively exploring acquisitions with wealth management firms after withdrawing Investmint as a product due to the inability to develop a reliable business model. A spokesperson for Investmint confirmed to Entrackr, “We’re in late-stage talks with a few big players for M&A.” Should these talks fail, the company may return the remaining capital to its investors. Despite achieving significant traction and retaining funds from its previous fundraising, Investmint struggled to convert these resources into revenue. In October 2022, Investmint secured $2 million in seed funding, led by Nexus Venture Partners. Founded in February 2022 by Aakash Goel and Mohit Chitlangia, Investmint aimed to simplify stock market operations for regular investors through data-driven and scientifically-backed trading and investment products. The decision to halt operations follows a pattern seen among start-ups unable to achieve a sustainable business model or product-market fit. For instance, fashion start-ups Fashinza and Virgio returned investor capital in March after altering their business models. Similarly, digital health start-up Nintee shut down in April, with founder Paras Chopra announcing the return of most raised funds to investors.

Government Announces 3.5% Stake Disinvestment in NHPC, Stock Dips 4%

Leave a Comment / By / Governance Community

In a strategic move, the government has unveiled plans to disinvest a 3.5% stake in NHPC (National Hydroelectric Power Corporation) through an offer for sale (OFS), causing a notable dip in the company’s stock value. The floor price for the OFS has been set at Rs 66 per share, and this development has triggered a 4.33% decline in NHPC shares during Thursday’s trade on January 18. As of 9:26 a.m., NHPC shares were down by Rs 3.16, trading at Rs 69.9 apiece on the Bombay Stock Exchange (BSE). The market capitalization of NHPC at the same time was recorded at Rs 70,214.79 crore. Investors and market analysts are closely monitoring the situation, evaluating the potential impact of the government’s disinvestment decision on NHPC’s market dynamics. NHPC, a prominent public sector power company, plays a crucial role in the country’s power generation landscape. The government’s move to divest a portion of its stake in the company is part of its broader disinvestment strategy, aiming to optimize resources and streamline the public sector. Market experts suggest that while disinvestments can unlock value for the government, the immediate market response indicates investor caution. The floor price set for the OFS will be a key factor influencing investor sentiment and determining the success of the disinvestment plan. As the news of the government’s decision spreads, market participants are likely to closely watch NHPC’s performance, analyzing the potential implications for the energy sector and the broader stock market. The development adds an element of uncertainty to NHPC’s short-term outlook, creating a dynamic situation in the financial landscape.

ZEE Entertainment Shares Rebound After Initial Plunge on Director’s Exit Ahead of AGM

Leave a Comment / By / Media Entertainment & Art Community

ZEE Entertainment Enterprises Ltd (ZEE) witnessed a brief setback as its shares tumbled by 9% during Thursday’s trading session following the unexpected exit of non-executive non-independent director Adesh Kumar Gupta from the board. However, the stock demonstrated resilience, recovering most of its losses as the session progressed. Gupta, who served as a crucial member of the audit committee and chairman of the risk management and stakeholders relationship committees, cited personal reasons and commitments for his departure ahead of the upcoming annual general meeting (AGM). The initial market reaction led to a decline of 8.79%, with the stock hitting a low of Rs 284.10 on the BSE. In his resignation letter, Gupta expressed regret for being unable to continue as a director due to personal reasons and commitments. He withdrew his re-appointment at the AGM but extended his best wishes for the company’s success, particularly emphasizing the completion of the pending merger with Sony. ZEE Entertainment responded by confirming Gupta’s exit from key committees after the AGM. The company’s 41st AGM is scheduled for Saturday, December 16, at 4:00 pm (IST). ZEE has announced that the AGM will be conducted through video conferencing and other audio-visual means, adhering to circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Investors, initially concerned about the sudden exit, regained confidence as the trading session progressed, reflecting the market’s anticipation of a smooth AGM and positive outcomes for the pending merger with Sony.