Future Retail-Reliance deal: SC stays proceedings on Amazon’s plea to enforce arbitrary award
(With inputs from PTI)
NEW DELHI: The Supreme Court on Thursday stayed all enforcement proceedings before the Delhi high court on Amazon ’s petition seeking enforcement arbitrary award restraining Future group from going ahead with its deal with Reliance.It also directed that no statutory authority – NCLT, CCI, Sebi – will pass any final order relating to approval of the deal.The apex court has deferred Future group’s appeal for further hearing after 4 weeks in order to wait for the Emergency Arbitrator’s decision on the company’s objection to proceedings by the e-commerce giant.It considered the statements of senior advocates Harish Salve and Mukul Rohatgi, appearing for FRL and Future Coupons Private Ltd (FCPL) respectively, that the arbitrator has reserved the final verdict in the case after hearing both sides.Senior advocate Gopal Subramanium, appearing for US-based e-commerce giant Amazon which has challenged the merger, said that it was not interested in any punitive action against FRL, FCPL and their Directors and consented to passing of the order staying the proceedings before the Delhi High Court.Amazon and Future Retail have been engaged in a bitter legal fight over the later’s Rs 24,713 crore asset sale deal with Reliance Retail.Both Future Retail Limited (FRL) and Future Coupons Private Ltd (FCPL) have moved the top court against the Delhi High Court order of August 17 which said that it would implement the earlier order by its single-judge restraining FRL from going ahead with the deal in pursuance of the EA’s award.The High Court had also ordered attachment of properties.Amazon had first filed a plea before the high court (single judge) for enforcement of the October 25, 2020, EA award by Singapore International Arbitration Centre (SIAC) restraining FRL from going ahead with the deal with Reliance Retail.On August 6, the Supreme Court gave the verdict in favour of Amazon and held that Singapore EA’s award, restraining the Rs 24,731 crore FRL-Reliance Retail merger deal, is valid and enforceable under the Indian arbitration laws.
Future Retail Chairman Kishor Biyani’s remuneration fell 44 pc to Rs 2.17 cr last fiscal
Biyani’s annual remuneration stood at Rs 3.86 crore in 2019-20, according to Future Retail Ltd’s (FRL) annual report for 2020-21.
The remuneration of Kishor Biyani, Chairman of debt-ridden Future Retail Ltd, declined nearly 44 per cent to Rs 2.17 crore in the last financial year.
In 2020-21, business activities were hit by the coronavirus pandemic.
Biyani’s annual remuneration stood at Rs 3.86 crore in 2019-20, according to Future Retail Ltd’s (FRL) annual report for 2020-21.
FRL’s Managing Director Rakesh Biyani also saw his remuneration decline by 4.82 per cent to Rs 3.75 crore in the financial year ended March 31, 2021. His remuneration was Rs 3.94 crore in the year-ago period.
The company’s Non-Executive Independent Directors voluntarily agreed and decided not to take any amount towards the commission in the last financial year.
“For the year under review, there was no change in the sitting fees for attending meetings of the Board and/or Committee thereof to the Non-Executive / Independent Director of the company,” the annual report said.
In FY 2020-21, the number of permanent employees of the company fell 30.1 per cent.
As on March 31, 2021, FRL had 21,839 permanent employees on the rolls as against 31,221 permanent staff a year ago.
The ratio of remuneration of each director to the Median Remuneration of the Employees (MRE) was Rs 1,89,986 in FY21 while it was Rs 1,71,612 in the year-ago period.
“The increase in MRE in the financial year 2020-21, as compared to the financial year 2019-20 was 10.71 per cent,” the company said.
In the last financial year, FRL’s revenue from operations declined 69 per cent to Rs 6,303.94 crore.
On the business outlook, FRL said the current fiscal year seems to be challenging due to the second wave of the pandemic, which has impacted almost every aspect of human lives.
After the pandemic, incomes have been affected, leading to deferral of discretionary consumption, the annual report said.
“This pandemic has led to huge uncertainties, including in the consumption space,” it added.
Future Retail operates retail chains such as Big Bazaar, HyperCity, EasyDay Club and Heritage Fresh.
Future Retail share slips over 4% after net loss widens in Q1
Future Retail share fell over 4% today after the firm reported widening of its consolidated net loss in the June quarter.
Future Retail stock has lost 4.3% in the last 2 days. Future Retail stock opened with a loss of 4.17% at Rs 47.10 against previous close of Rs 49.15 on BSE.
Future Retail stock touched an intraday low of Rs 47.1 falling 4.17% on BSE.
The share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Market cap of the Kishore Biyani-led firm fell to Rs 2,600 crore
Total income declined to Rs 1,407.11 crore in Q1 from Rs 1,447.62 crore in the year-ago period.
Total expenses of Future Retail, which operates retail stores like Big Bazaar, fbb, Foodhall, Easyday and Nilgiris, rose to Rs 2,554.39 crore compared to Rs 2,000.53 crore.
“The outbreak of COVID-19 pandemic has created economic disruption throughout the world including India. Consequently, the revenue and profitability for the quarter ended June 2021 have been adversely impacted,” it said.
The Kishore Biyani-led Future Group firm said it has entered into debt restructuring of the existing financial debt of the company under an RBI announced resolution framework for COVID-19 related stress.
“The One Time Restructuring (OTR) has been implemented by execution of the documents by the company and eligible lenders on April 26, 2021,” it said.