Page 3909 - Business Finance

GST roadblocks hit Patanjali growth in FY18

Baba Ramdev-led Patanjali, which has recorded multi-fold growth in recent years, is expecting a marginal growth for 2017-18, on account of Goods and Services Tax regime, said a company official. Haridwar-based firm said it was impacted as it had a window of 10 months only in the last fiscal, as the company took two months to adopt the framework of the GST system, develop infrastructure and supply chain. However, the company, which has lined up several launches -- from packaged drinking water to dairy products, expect to resume its high growth trajectory from this fiscal. "We are shortly going to announce our revenue, this would be higher than the last year. We have achieved a marginal growth (last fiscal) but we are in growth mode," Patanjali spokesperson S K Tijarawala told PTI. "Because we were focussing more on systematic development for requirement of GST. This gave us less operational time, it was not a 12 months year for us," he further added. In financial year 2016-17 Patanjali

MTNL investing Rs 190 cr to upgrade services; may be allocated

Cash-strapped telecom firm MTNL is investing Rs 190 crore to upgrade its services and may also be allocated 4G spectrum to help stay relevant in the highly competitive market, telecom minister Manoj Sinha has said. The department of telecom (DoT) is "seriously considering" to allot 4G spectrum to state-run Mahanagar Telephone Nigam (MTNL), which serves New Delhi and Mumbai, and Bharat Sanchar Nigam (BSNL), which serves the rest of the country, he said. "Now we are attempting to make its (MTNL) services better and after a long time MTNL is investing money in improving its network and services, both in New Delhi and Mumbai. I feel they will rollout something in the next three to four months and their services will be better," Sinha told PTI over the weekend. Conceding that MTNL's financial situation is difficult, he said the state-run firm is investing Rs 190 crore in the project that will see it install new base transceiver stations, among other initiatives. Sinha said ..

Petrol, diesel in Delhi hit record highs

State-run Indian Oil Corp on Sunday raised transport fuel to record highs in Delhi on the seventh day of resuming the daily price change system, following a temporary suspension that lasted 20 days.

India sixth wealthiest nation with $8,230 bn, China three times richer

Globally, the total private wealth held worldwide amounts to around $215 trillion

Trent scouts JV partner for overseas foray

The Tata retail company Trent Ltd is scouting for a suitable joint venture partner for its overseas ambition, a company official said. "We are still looking for. We want a right partner and a right model," Trent Managing Director Philip Auld told PTI when asked about West Asia and Africa ventures. Staying cautious on foreign foray, he said the company preferred joint venture as it "shares the risk." Auld said that initially the Middle East was the first destination and dialogue was under progress for a right partner and things might get crystallised in a year's time. In 2015, Trent Chairman Noel Tata at the AGM had first spelt out the wish to take its retail format to Africa and West Asia but competition, transaction costs, taxes and exchange rates were subjects of consideration for the company before deciding to venture out. Though Auld did not spell out which of the retail format might be taken overseas but Westside was the preferred choice for the company. "In Westside

India on path of development of tax collection, domestic capabilities

The United Nations Organisation's (UNO) goal number 17 refers to the development and utilisation of its resources for the continuous promotion from countries of the world.The UNO believes that the financial assistance given by the global organisations to the developing countries will not work until these countries are able to streamline their resources and modalities in line with the direction of development.The subject experts of the UNO also periodically provide relevant suggestions to the developing countries. This can be understood in relation to Goods and Services Tax (GST), which the UNO has made quite strictly to implement it.Although the first GST was implemented by France in the world, India has adopted Canada's two-tier GST model while implementing GST last year. In fact, due to the incomplete preparations and being implemented in a hurry, GST is being manipulated repeatedly, due to which it has now become India's self-sustaining multi-layered GST model instead of the ...

China central bank adviser calls for two-track financial opening

BEIJING (Reuters) - China's financial services market should be opened further to foreign competition, but liberalization of cross-border capital flows should be done more cautiously, an adviser to China's central bank said at a forum on Sunday.

Stock markets may see another phase of correction: Report

The Indian economy is in the beginning of an economic recovery, but there are thick headwinds for domestic equity markets going ahead and another phase of correction is likely, says a report. According to the report by Edelweiss Investment Research, approaching elections, elevated bond yields, emerging market currency weakness and deteriorating current account is likely to keep Indian markets under check. "Nifty is likely to trade near the 10,000 level in the short term and as we approach FY19 end," the report said. It further noted that "weakness in breadth throws out cautious signal for the trend. This indicates that markets may see another phase of correction." "We expect Nifty to face another round of selling towards the March 2018 lows". In March this year, the 30-share sensitive index fell 10.16 per cent to 32,596.54 points on March 23, from a high of 36,283.25 on January 29. The report further noted that domestic liquidity is holding up the market. Domestic mutual fund SIP ...

We need two quarters to fully take off in India: Chinese smartphone Honor

China's top-selling smartphone Honor, which aims to expand aggressively in India this year, will be ready to take off in the next two quarters, the company's president believes.

Best use of insolvency law is in not using it at all: IBBI chief Sahoo

Asserting that the insolvency law has brought in behavioural changes among stakeholders, IBBI chief M S Sahoo has said the best use of the Insolvency and Bankruptcy Code would be in not using it at all. In a reflection of the growing importance of the Code, which has been in force for nearly one-and-a-half years, around 750 cases have been admitted by the adjudicating authority so far into the resolution process. According to Sahoo, the inevitable consequences of a resolution process deter the management and promoter of a company to make best efforts to avoid a default. We have seen several instances where the corporate debtors have paid the default amount after trigger application is filed before the adjudicating authority but before its admission. Some of them pay up as soon as they receive a notice from an operational creditor, he told PTI in an interview. The National Company Law Tribunal (NCLT) is the adjudicating authority and a case is admitted for resolution under the Code ...

Sebi to consider penal action against PNB, Gitanjali Gems

Markets regulator Sebi will consider penal action against Punjab National Bank and Gitanjali Gems after completion of its probe into suspected trading and disclosure related issues in the matter of over Rs 14,000 crore banking fraud, senior officials said. The markets watchdog last week issued a warning letter to PNB for delaying disclosures to stock exchanges about the fraudulent transactions allegedly carried out by absconding Nirav Modi and Gitanjali Group of companies. However, the probe is continuing and the penal action would depend on the final outcome of the investigation, the officials added. PNB was defrauded allegedly by the diamond trader and his associates by fraudulent use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain bank officials. The Securities and Exchange Board of India (Sebi) and stock exchanges have been analysing the stock market trade details of all entities associated with Modi and Gitanjali Gems' main ...

Urban Ladder aims to hit profits next fiscal, plans IPO by 2020

Home furnishing company Urban Ladder expects to hit profits by next financial year as it expands network of physical stores in Delhi-NCR and Bengaluru, and further strengthens its product portfolio. The Ratan Tata-backed company has five physical retail stores in Bengaluru and Gurugram apart from its online operations. "We are expecting a touch and go zone in April-June quarter and hope to be profitable by July-September quarter in Bangalore city, which is our primary place of business and a large part of our business. Our next financial year will be a profitable one (overall) which will be churning cash financially," Urban Ladder co-founder and CEO Ashish Goel told PTI. While he declined to share the revenue details, Goel said the company intends to release the half-yearly financial details from the October quarter as the company is looking at becoming a public company. "I have given a mandate till Diwali 2019 to my team... we expect it to happen by March or July 2020 and have told ..

Revenue authorities step up efforts to make biz file GST returns within deadline

As the average of GST returns filed on time remaining just 65 per cent, the revenue department is sending notices to non-filers through emails asking them to submit returns within three days of the expiry of the deadline despite up to 15 days time limit, tax experts said. The due date for filing GST summary returns for a month is 20th day of the subsequent month, but many businesses registered under the Goods and Services Tax (GST) file after the deadline by paying late fee and penalty. Tax experts said these emails are automated and system-generated and the time limit given to file returns vary from immediately to three days to 15 days. In one such notices being sent to a 'return defaulter' for not filing GSTR-3B or the summary sales returns, revenue authorities asked the taxpayer to furnish the return for a particular month "within three days, failing which the tax liability would be assessed under the GST Act, 2017". "In addition to the tax assessed, you will be liable to pay ...

Apple pays $1.77bn of total $15bn tax fine to Ireland

Apple has paid $1.77 billion of total $15 billion to the Irish government as it begins to collect tax and interest into an escrow account set up to hold the sum.

NMDC, NLCtoink pact with Aussie ECTfor R&D project

NMDC Limited and NLC India Limited (formerly Neyveli Lignite Corporation) may invest over USD 26 million for setting up an R&D facility for developing innovative technologies in iron and steel making. Senior executives of NMDC Limited and NLC India Limited are expected to visit Australia to sign a joint R&D agreement with Environmental Clean Technologies Limited (ECT) an Australian company expert in commercialising leading-edge coal and iron-making technologies, sources close to the development said. "NMDC has a Board meeting on May 28.Afinal decision will be taken with regard tothe signing of MoU with ECT." "A Special Purpose Vehicle (SPV) will be created upon completion of the R&D phase of the project, with ECT 49 per cent, NLC 25.5 per cent and NMDC 25.5 per cent stakes,"sources told PTI. Following successful phase one R&D outcomes, the agreement provides the framework to proceed with a commercial-scale integrated steel-making facility by the SPV, ...

Petrol, diesel touch all time highs as oil companies hike rates

Petrol price today touched a record high of Rs 76.24 per litre and diesel climbed to its highest ever level of Rs 67.57 as the oil PSUs passed on four weeks of relentless rise in international oil prices to consumers. Petrol price today increased by 33 paisa a litre in Delhi -- the highest since the daily price revision came into force in mid-June 2017, and diesel by 26 paisa, according to price notification issued by state-owned oil firms. Rates vary from state to state depending on the incidence of local sales tax or VAT. Prices in Delhi are the cheapest in all metros and most state capitals. With this increase, petrol has touched an all time-high, breaching the previous high of Rs 76.06 touched in Delhi on September 14, 2013. Diesel rates are also at the all-time high level. This is the seventh straight day of price increase since oil PSUs on May 14 resumed daily price revision after a 19-day pre-Karnataka poll hiatus. In all, petrol price has been raised by Rs 1.61 a litre and ...

Leather, footwear cos to get funding for brand promotion in global mkts

The Commerce and Industry Ministry has invited proposals from Indian leather and footwear companies to grant funding to help them promote their brands in international markets such as the US and Europe, an official said. The assistance would be provided under a sub-scheme of Indian Footwear, Leather, and Accessories Development Programme. "The sector needs to be promoted as it holds huge potential. We have big brands in the leather and footwear sector. The government will provide financial support to carry out brand promotion activities in the international markets," the ministry official said. The government assistance would be restricted to 50 per cent of total project cost for all eligible activities that includes registration charges for Indian brand/logo overseas, display in international departmental stores, publications of world class catalogues, and publicity campaign. Further, the financial support is subject to a limit of Rs 3 crore for each brand per year for the next three

UM Lohia plans to drive in new bikes, expand sales network

UM Motorcycles, the joint venture between US-based UM International and Lohia Auto, plans to launch new models, including electric bikes, and expand sales network as part of its plans to expand business in the country. The company is also working to enhance its production capacity by setting up a new plant in Hyderabad, which would be mainly utilised to cater to the demand from southern and western regions. "In September this year we plan to launch a 230 cc bike. Before that we will also launch two variants of existing products. Over the next two years we plan to launch a 450cc and a 650cc bike. So by 2020 we will have a product portfolio ranging from 230 cc to 650 cc," UM Lohia Two Wheelers CEO Rajeev Mishra told PTI. The company currently sells four products -- Renegade Commando Classic, Renegade Commando Mojave, Renegade Commando and Renegade Sports S in the country, priced between Rs 1.59 lakh and Rs 1.95 lakh (ex-showroom). Mishra said that in order to cater to enhanced demand ...

FPIs in exit mode, pull out USD 2.65-bn in May

Foreign investors pulled out nearly Rs 18,000 crore (USD 2.65 billion) from capital markets so far this month primarily due to surge in global crude prices and heightened US-Iran tensions. Foreign portfolio investors (FPIs) had taken out more than Rs 15,500 crore from capital markets (equity and debt) in April. According to the latest depository data, foreign portfolio investors (FPIs) withdrew a net sum of Rs 4,830 crore from equities and another Rs 12,947 crore from the debt market during May 2-18, taking the total to Rs 17,771 crore (about USD 2.65 billion). Harsh Jain, COO at Groww, an investment platform attributed the latest outflow mainly to rise in cost of crude oil and heightened US-Iran tensions. This would impact all the oil importing economies, including India, and adversely affect its current account deficit, fiscal deficit, imported inflation and create headwinds for economic growth. Besides, FPIs started profit booking before the Karnataka elections, which was a crucial

Investors rush to mutual funds; over 8 lakh folios added in a month

Showing a growing inclination for mutual funds among investors, the number of folios has grown by over 8 lakh in just one month to reach an all time high of 7.22 crore at the end of April 2018. This follows an addition of 1.6 crore investors account in entire 2017-18, over 67 lakh folios in 2016-17 and 59 lakh in 2015-16. Folios are numbers designated to individual investor accounts, though an investor can have multiple accounts. According to the data from Association of Mutual Funds in India on total investor accounts with 42 fund houses, the number of folios rose to a record 7,21,85,970 at the end of April this year, from 7,13,47,301 at the end of March 2018, a gain of 8.38 lakh. Over the last few years, investor accounts have increased following robust contribution from retail investors, especially from smaller towns, and huge inflows in equity schemes. Folios in equity, equity-linked saving schemes (ELSS) grew by 7.35 lakh to 5.43 crore, besides, folios in balanced category ...