1. Govt expects 50% states to ratify GST bill in 30 days: ET
If all goes according to plan, then half the states are expected to clarify the constitution amendment Bill on goods and Services Tax (GST) within the next month, with the deadline to roll out the new tax system being April 2017.
These days, the monsoon session of most state legislatures is going on. Most state governments know they will have to pass it now, (so) call a special session or do it in the current sessionArun Jaitely, Finance Minister
Source: Economic Times
2. Arvind’s Net Profit Rises 32.9%: BQ
Arvind Ltd.’s first quarter net profit rose 32.9 percent to Rs 73.36 crore compared to the same quarter last year, according to the company’s filing on the exchanges. This was below the Bloomberg consensus estimate of Rs 81.8 crore.
Total revenue rose to Rs 2,104 crore, down 17.8 percent from the same period last year. This was also slightly below analyst estimates of Rs 2,117.7 crore.
Margins on earnings before interest, tax, depreciation, and amortisation contracted to 11.4 percent from 12.4 percent year on year.
Source: BloombergQuint
3. Why Banks Can’t Find Buyers for Stressed Assets: Livemint
When you highlight the examples of failure to find bidders for assets of debt-stricken Kingfisher Airlines, it seems that banks find it hard to dispose off the stressed assets.
Data in recent times has shown that banks find it difficult to get bidders for assets like factories and offices.
The Securities and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 permits banks and financial institution to auction properties of defaulters who fail to replay loans.
Source: Livemint
4. Amazon and Alibaba Drafted into Indian Tax Collection: BQ
India’s decade-long effort to introduce a nationwide goods and services tax to replace a bewildering array of levies imposed by 29 state governments was successfully concluded late Wednesday in New Delhi.
The GST will now be part of the Indian constitution, though its implementation could take anywhere between a year and 18 months.
Source: BloombergQuint
5. PSUs asked to deposit unspent CSR funds into Swachh Bharat pool: ET
The job of financing the Prime Minister Swachh Bharat mission has been entrusted to state-run companies who are expected to contribute to the account that will be financing the programme.
This process has been undertaken by the Department of Public Enterprises (DPE) asking public sector undertakings to deposit the money they haven’t been able to spend on Corporate Social Responsibility (CSR)
Source: Economic Times
6. IPO Boom Being Driven by Need for Exits, Not Growth Capital: Livemint
In an extensive analysis done by Mint, it has been found that two-thirds of the capital raised through initial public offerings (IPOs) in 2016 was directed towards offers for sale, and only one thirds towards growth capital.
These statistics are also indicators of how private investment demand is yet to take off in the country. The numbers are also the lowest in the last 10 years, except 2013 when only one fourth of the money raised went towards expansion and capital investment.
Source: Livemint
7. Rising Tide May Buoy Midcaps the Most: ET
The Goods and Services Tax (GST) will have a mixed impact on companies. Some of the biggest companies may not gain too much initially, but the historic tax reform will be advantageous for midcap stocks.
Once the Bill is implemented, only one fourth of the 50 companies on the NSE Nifty will be direct beneficiaries. However, in the long run, there will be plenty of action. Companies dealing with footwear, batteries and ply wood, among others could benefit from the tax.
Source: The Economic Times
8. Bata India to Take Franchise Route to Tap Rural and Semi-Urban Markets: Livemint
In a bid to experiment with its franchise model, shoemaker Bata India Ltd is all set to slow down the expansion of own store network and aims at tapping into rural and semi-urban markets, a top company official said.
This is something we have never done before. Currently, all our stores are company-owned.Rajeev Gopalakrishnan, managing director and chief executive officer of Bata
The company’s partners have launched around 30 stores across Gujarat, Madhya Pradesh and Uttar Pradesh, and the “the initial response is encouraging,” he adds.
Source: Livemint
9. Suzlon to Exit Debt Restructuring by March 2017, Says Founder Tulsi Tanti: Livemint
After reeling under heavy debt owing to some if its overseas expansion decision, Suzlon Energy Ltd in India now wishes and hopes to exit a process of corporate debt restructuring (CDR) by March 2017.
The company’s purchase of German wind energy firm RePower in 2007proved to be disaster as it set them on a path of corporate debt restructuring. (CDR)
However, founder and chairman Tulsi Tanti now believes that the company has recuperated from the costly mistake and rebuilt its business by focusing on its domestic business.
Source: Livemint
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