Vendors face indemnity papers, blocked payments as firms try to ringfence them from defaults.
The possibilities include listing some of their Indian entities or creating a holding structure outside India. These companies and their tax consultants are studying ways to minimise their tax outgo, experts said.
Amidst liquidity crunch due to Covid, businesses face risk of frauds, round tripping and evergreening of loans: PwC report
Unstable cashflows and low reserves, coupled with a restricted ability to seek additional debt or equity financing, can create immense pressure on businesses to divert funds between entities for non-permissible or surreptitious purposes, said the PwC report titled ‘Rethinking Fraud and Economic Crime.’
Tata Sons, PepsiCo, Flipkart, Walmart, Vivo India, Larsen & Toubro and TikTok, among others, came forward to donate ventilators, personal protection equipment, masks, medical gowns and testing kits.
Companies see impact on future revenues, costs and contracts due to Covid-19 crisis
Small and medium enterprises are consolidating labour, using innovative incentive schemes and even redesigning assembly lines to tide over a labour crisis brought on by the Covid-19 pandemic and the resultant migration of jobless workers.
With prospects of almost zero recovery over the next few months, banks are worried that buyers may call off deals or reduce valuations significantly if the final approvals are delayed due to stalled economic activity.
The Department of Science & Technology (India) had recognised Dynapar QPS for the successful commercialisation of indigenous technology by rewarding it with TDB (Technology Development Board) National Award in the year 2015, the company statement added.
Piramal plans to sell loans in the face of financial pressure following the pandemic
It includes marquee names like Bajaj Finance, Tata Capital, HDB Financial Services, Tata Motors Finance, M&M Finance, KKR India, Indiabulls Commercial Credit having an exposure of Rs. 4 lakh crore to the banking system.
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