QBiz: More Insolvency Cases On RCom; Farmers Seek Income Security
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1. Gujarat Elections 2017: Traders Miffed After GST Nixes 'Kutcha' Transactions
If there is one issue which has caused considerable disquiet among traders in poll-bound Gujarat, it is the implementation of the goods and services tax (GST) – what locals claim is the pain of switching business transactions from kutcha (informal) to pucca (formal).
Yes, they say, demonetisation of high-value currencies last November was disruptive, but it was temporary. In contrast, the changes associated with GST are structural.
In districts like Rajkot, Amreli and Morbi, traders, particularly those in medium and small enterprises, are agitated over the lack of clarity about uploading invoices into the GST network and the frequent changes in tax slabs.
Effectively with the implementation of GST, the informal system of kutcha or hand-written bills to avoid paying taxes is history.
(Source: Livemint)
2. Behind GDP Data, Some Signs of Concern
The release of the second-quarter (Q2) gross domestic product (GDP) data for 2017-18 is encouraging at first glance.
However, a critical look at the data shows that on the supply side, growth is supported by mining, which recorded a 5.5 percent growth as compared with 1.3 percent in Q2 of 2016-17. Similarly, trade, hotel transport and communications have recorded improvements, along with public administration and defence.
However, there should be concern that agriculture has shown a significant slowdown at 1.7 percent, against 4.1 percent in Q2 of 2016-17. Manufacturing has recorded some deceleration along with construction, where growth has been at 2.6 percent, down from the 4.3 percent witnessed in Q2 of 2016-17.
What emerges is an economy marked by a slowdown in agriculture, deceleration in manufacturing and construction, and, more importantly, deceleration in investment.
(Source: Livemint)
3. Farmers Seek Income Security Law in Pre-Budget Consultation
Farmers on Tuesday, 5 December, urged Finance Minister Arun Jaitley to statutorily ensure income security for them and simultaneously take steps to reduce input costs and make farming profitable.
The suggestions from the Consortium of Indian Farmers Associations (CIFA) and agriculture economists was made at the first of the pre-budget consultation.
“The median agriculture income is about Rs 1,600 per month. No family can sustain with this even in the remotest part of the country. Hence the farming community of India demands an Income Security Act for farmers, tenant farmers and farm labourers,” Bojja Dasaratha Rami Reddy, secretary general of CIFA, told reporters after the meeting.
Not only is this putting the spotlight on rural distress, a key issue agitating farmers across the country in general and also a central focus in the ongoing Gujarat election campaign, it will revive the debate on universal basic income.
(Source: Livemint)
4. More Chinese Banks to File Insolvency Cases Against RCom
Two major Chinese lenders plan to support a move by China Development Bank to put Reliance Communications Ltd (RCom) into insolvency court as they seek to recover about $2 billion in debt, said three people with knowledge of the matter, Livemint reported on Tuesday, 5 December.
Last month, China Development Bank began insolvency proceedings against RCom, which has been trying for months to restructure its debt via a debt-for-equity swap. Now, Industrial and Commercial Bank of China (ICBC), the country’s biggest-listed lender by assets, and Export-Import Bank of China, plan to back CDB, the people said.
RCom last week said the majority of its creditors will oppose China Development Bank’s insolvency bid.
(Source: Livemint)
5. Business Sentiment Dips 13% in October: NCAER
Overall business sentiment in the country witnessed a 12.9 percent drop in October over July 2017 on a quarter-on-quarter basis, said a survey by economic think-tank NCAER, on Tuesday, 5 December.
The business sentiments survey was carried out in September 2017.
The National Council of Applied Economic Research (NCAER), in a report, also said there was deterioration in political sentiments in October over July 2017 with the Political Confidence Index (PCI) showing a quarter-on-quarter fall of 12.4 percent.
The significant downturn in sentiments in September 2017 reflected the disquiet of the business sector from the on-going GST transition, it added.
(Source: PTI)
6. LIC Premium Income Rises 12% to Rs 1.48 Trillion in Apr-Sep Period
Total premium income at Life Insurance Corporation of India (LIC) rose nearly 12 percent in the six months ended September to Rs 1.48 trillion, the state-run insurer said on Tuesday, 5 December.
Total net income during the period rose 12.6 percent to Rs 2.50 trillion.
LIC, India’s largest institutional investor, booked Rs 12,374 crore profit from the sale of equities during the period, up 16.3 percent from a year before, as the market scaled record highs.
India’s largest life insurance company did not plan to aggressively buy equities during the rest of the financial year, but did plan to book profits to generate income, chairman VK Sharma said. “We will keep on doing routine sale and purchase. We will not be aggressively buying,” Sharma said.
(Source: Livemint)
7. Goa Assembly's Winter Session Begins Next Week
Crucial bills related to Revenue and Town Planning Departments will be tabled in the Winter Session of the Goa Legislative Assembly beginning December 13.
The Business Advisory Committee (BAC) of the Assembly met on Tuesday, 5 December, to chalk out the agenda for the four-day session.
"Various bills related to Town and Country Planning and Revenue Departments would be tabled during the session," State Legislature Secretary Nilkant Subhedhar said.
According to sources, amendments to the Town and Country Planning Act (TCP) to fix criminal liability on those involved in illegal land conversions and a new legislation to rejuvenate and boost the community and contract farming are the two crucial Bills to be tabled in the session
(Source: PTI)
8. Swiggy Appoints Vishal Bhatia as CEO of 'New Supply' Biz
Food ordering and delivery platform Swiggy on Tuesday, 5 December, said it has appointed Vishal Bhatia as its CEO for 'new supply' vertical.
The 'new supply' business line will be focused on Swiggy's strategy of giving consumers a greater assortment by addressing existing supply gaps in the marketplace, the company said in a statement.
Bhatia comes with 19 years of experience and has worked in organisations like Reckitt Benckiser (RB), PepsiCo, and Britannia.
"As Swiggy prepares for the next phase in our growth, the new leaders will spearhead strategic initiatives that will create sustainable long-term value for our consumers and the marketplace," Swiggy CEO Sriharsha Majety said.
(Source: PTI)
9. Mindtree Launches Network Operations Centre in US
Mid-sized IT firm Mindtree on Tuesday, 5 December, said it has set up its first North America-based network operations centre (NOC) in Arizona to support its growing Infrastructure Management Services business.
Based on the model of its Chennai and Bengaluru NOCs, the US centre will help provide clients support for IT applications and infrastructure, it said in a statement.
The Scottsdale NOC will provide infrastructure and application operations support to clients, spanning service desk, level 1, 2 and 3 remote monitoring and management services.
Key clients from banking, financial services and insurance sectors have already committed to engaging with the Scottsdale NOC, the statement said.
This will also allow Mindtree to meet specific compliance requirements where monitoring must be done within the US and by the US citizens when security clearance is required, it added.
(Source: PTI)
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