China is secretly raising a corporate army in 16 major firms to fight home and abroad
Chinese companies are forming volunteer armies called Peoples Armed Forces Departments (PAFDs), reflecting Beijing's concerns about social unrest and foreign threats. These units, reminiscent of the Mao Zedong era, act as a reserve force for the military and can be deployed for various missions, including disaster response and maintaining social order. Key Points
Economic TimesUS progressive groups ask DOJ to reverse new M&A safe harbor policy
More than a dozen groups are pressing the U.S. Justice Department to retreat from a new policy they say gives a "free pass" to corporate wrongdoers, a sign of mounting criticism among progressives of enforcement under President Joe Biden. Key Points
ReutersView: How to reverse the longest downturn in corporate capex
GoI slashed the corporate income tax rates in September 2019, which is estimated to have boosted the earnings of large corporates by 8-10%. Ideally, an increase in earnings should have been used for capex but, instead, higher earnings found their way into increased dividend payouts, raising the dividend payout ratio further to 66% in 2019-20. Key Points
The Economic TimesGo First: NCLT rejects lessors' petitions to take possession of planes
India's Insolvency tribunal NCLT has rejected aircraft lessors' petitions to seize back the planes leased to Go First. The firm has been grounded for almost three months. The NCLT held that physical possession of the aircraft would be indisputably with Go First and lessors cannot claim possession during the corporate Insolvency Resolution Process . Key Points
Economic TimesWhat happens when 'fun' corporate retreats cross a line
Company getaways are making a comeback, especially as many firms move to remote-first models. They can be well meaning – but turn out problematic. Key Points
BBC
Q4 results today: Adani Transmission, IRCTC to Sobha - these companies to announce earnings on Monday, May 29
The share of the information technology sector in the overall corporate profits pool plunged to at least a 21-quarter low of 9.7% in the March quarter, a Mint analysis of the latest corporate earnings data showed. Key Points
mintGovt sets up Centre for Processing Accelerated corporate Exit
The establishment of the C-PACE will help to reduce the stress on the Registry along with keeping the registry clean besides availability of more meaningful data to the stakeholders. The C-PACE will also benefit the stakeholders by providing hassle-free filing, timely and process-bound striking off their company's names from the register, the corporate affairs ministry said in a release. Key Points
Economic TimesMutual fund exposure to corporate bonds stayed flat in past five years: Report
Actively-managed debt funds, which have the flexibility to invest larger portions of their corpus in corporate paper, were managing ₹6.73 trillion at the end of April 2019. Key Points
mintET analysis: Surging corporate profits to help ease Reserve Bank's inflation fight
Indian companies have lately boosted margins from the 2020 trough, but volumes have consistently trailed the exponential growth in operating profitability. India's corporate profits to gross domestic product (GDP) ratio, which had fallen to below 2.5% toward the end of the last decade on deteriorating bank assets and higher input costs, has since recovered to near 4%. That's still about a quarter below the levels seen before the 2008 global financial crisis. Key Points
Economic TimesGovt-appointed panel may look at having more rigorous regulatory framework for unlisted cos
The Indian government is considering implementing a more rigorous regulatory framework for unlisted companies, including large startups. The corporate Affairs Ministry plans to introduce stricter norms, with the possibility of discussing more rigorous regulations for unlisted companies, especially large ones and big startups. The panel will examine various regulatory aspects, including corporate governance, while also aiming to promote ease of doing business. Key Points
Economic Times
India to grow 6.5% in FY25, down from 6.9% this fiscal: Ind-Ra
India's economy is expected to grow by 6.5% in the fiscal year 2024-25, supported by sustained government capex, soft global commodity prices, and signs of growth in the private corporate capex cycle, according to India Ratings and Research. The forecast aligns with the International Monetary Fund's projection but is below the Reserve Bank of India's estimate of 7%. Key Points
Economic TimesReliance group’s Tony Jesudasan dies at 71
Tony Jesudasan, a key lieutenant of Anil Ambani’s Reliance group and a high-profile corporate communications and corporate affairs professional, died early on Monday morning. He was 71. Key Points
The Tribune IndiaUdaan CFO Aditya Pande resigns; firm announces senior-level changes
Kiran Thadimarri, group finance controller, will be elevated to the executive management team. Further, Vishnu Menon, head - corporate strategy & investor relations, has been given additional charge of business finance. Key Points
Economic TimesBoeing’s teary CEO pulled off a delicate balance in his contrition
Corporate apologies are harder to make than one may think. Research says that emotional displays can be risky if they seem put-on but helpful if done earnestly and backed by a credible commitment to make amends. Key Points
mintGovernment lost Rs 1 lakh crore in taxes in FY'21 due to corporate tax cut, says MoS Finance
The Indian government lost over INR 1 lakh crore in FY 2020-21 due to a cut in corporate taxes announced in September 2019. The base corporate tax for existing companies was reduced to 22%, while for new manufacturing firms it was cut to 15%. Companies opting for these new rates had to give up all exemptions and incentives. Key Points
Economic Times
Boeing heard all the warnings but just didn’t listen to its people
The plane-maker’s woes reflect a failure to clear wax from the ears of top managers. Executives need to listen better and show that they are doing so. Key Points
mintcorporate tax rate cut led to rise in pvt investments, credit growth: FM Sitharaman
Finance minister Nirmala Sitharaman stressed the positive impact of the corporate tax rate cut on private investments and credit growth. She emphasized the need for capacity expansion in high employment potential areas. India is negotiating free trade agreements and has facilitated direct benefit transfers. Key Points
Economic TimesTelecom Dept hauls up Vodafone Idea for not complying with KYC rules
The Department of Telecommunications (DoT) is behind Vodafone Idea (Vi) for providing mobile connections to corporate customers without following the mandatory 'know your customer' (KYC). DoT rules for telecom companies state that all business SIMs issued to any company must remain in a deactivated state. Key Points
Economic TimesWells Fargo to cut less than 50 investment banker jobs - source
Wells Fargo (WFC.N) has let go of less than 50 bankers from its corporate and investment banking unit as part of year-end pruning, a source familiar with the matter said on Tuesday. Key Points
ReutersChintan Shivir to focus on ensuring high growth rate
The finance and corporate affairs ministries plan to hold a two-day Chintan Shivir starting 20 August at Gujarat's Kevadia, which will comprise short and long-term measures to sustain growth rates, control inflation and tackle external challenges. Finance and corporate affairs minister Nirmala Sitharaman is expected to attend, while senior ministry officials will also be present. Key Points
Economic Times
Chintan Shivir to cocus on ensuring high growth rate
The finance and corporate affairs ministries plan to hold a two-day Chintan Shivir starting 20 August at Gujarat's Kevadia, which will comprise short and long-term measures to sustain growth rates, control inflation and tackle external challenges. Finance and corporate affairs minister Nirmala Sitharaman is expected to attend, while senior ministry officials will also be present. Key Points
Economic TimesMCA to withdraw 7,338 pending prosecutions in second round of a special drive to cut litigations
The ministry of corporate affairs (MCA) Friday said it has decided to withdraw 7,338 prosecutions pending before various courts in the second round of a special drive to cut litigations and ensure greater ease of doing business. The move will result in a 21.86% decline in the number of pending prosecutions being pursued by the central government, the ministry said. Key Points
Economic TimesInflation slowing down personal consumption, affecting pvt investment: RBI bulletin
Inflation in India is decreasing personal consumption expenditure, causing a slowdown in corporate sales and private investment, according to a paper authored by a team led by RBI Deputy Governor Michael Debabrata Patra. The Reserve Bank published the report, which urged the lowering of inflation to revive consumer spending and boost corporate revenues. The article called for stabilising inflation expectations to incentivise private capex, cautioning that while India was experiencing an economic rebound, others were slowing or contracting. The country's real GDP growth in Q4 2022-23 and credit growth were among the strongest globally, the report found. Key Points
Economic TimesGovernment plans to introduce bills to amend companies, insolvency laws in Parliament's monsoon session
The IBC, which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. It has already undergone various amendments. On January 18, the ministry proposed a raft of changes to the IBC, including fast-tracking the process, expanding the scope of the pre-packaged framework and developing an electronic platform with minimal human interface. Key Points
Economic TimesIBBI amends norms related to insolvency resolution process for personal guarantors
IBBI has made amendments to the insolvency resolution process for personal guarantors and voluntary liquidation process. The changes remove restrictions on an Insolvency Professional (IP) to be appointed as a Resolution Professional (RP) for personal guarantors. The amendments also make the convening of meeting of creditors mandatory in personal guarantor cases. Key Points
Economic Times
GST directorate seeks tax on corporate guarantees
The DGGI said the practice is a ‘service liable for taxation under GST as this is undertaken by the parent company to maximise the returns on investment on these subsidiaries. In the case of MNCs, tax authorities are seeking GST dues from the local unit under the reverse charge mechanism. Key Points
Economic TimesAs economy flies high, so does corporate air travel: Business flyers pass pre-Covid numbers
Executives at airlines and travel companies said increased activity among IT, mechanical, banking services, and pharmaceutical companies is driving the trend. At a time when fares are rising amid capacity cuts by airlines, the growth trend in corporate travel is seen to be stickier than that in the more price-sensitive leisure travel segment. Key Points
Economic TimesFinMin notifies prospective levy of GST on corporate guarantees
The finance ministry has released an official notice indicating that, going forward, goods and services tax (GST) will be applied to corporate guarantees offered by companies to their subsidiaries. Earlier this month, the GST council provided clarification on the taxation of corporate guarantees, specifying that they would be subject to an 18 percent GST. Key Points
Economic TimesFuture Retail resolution professional moves NCLT against Kishore Biyani and family alleging fraudulent tra
This application has been filed pursuant to the findings in the report received from Nangia & Co. LLP, which was appointed as 'Transaction Review Auditor' by the RP, said a regulatory filing from Future Retail Ltd (FRL). The Transaction Review Auditor was to assist RP in his duties and the determination, wherein a transaction has been reported under Section 66 of the Code for adjudication by the NCLT. Key Points
Economic TimesET Awards: Business, with a side of banter
The Economic Times Awards for corporate Excellence brought together numerous top industry leaders, ministers, and experts to celebrate the achievements of corporate India. The event was not just a celebratory ceremony but also a platform for knowledge sharing and networking in a luxurious setting, characterized by glamour, laughter, and a public-private partnership. Key Points
Economic Times
A second look: Modi's beyond-the-Budget booster shot for Indian manufacturing
Finance Minister Nirmala Sitharaman announced a corporate tax rate cut in September 2019. The tax cut aimed to make Indian corporate tax rates competitive and attract investment in manufacturing. The move was well received by the stock market, with Sensex surging on the day of the announcement. Analysts believe that the tax cut has helped boost the appeal of the Indian economy, especially in manufacturing. Other measures taken to enhance manufacturing include liberalizing FDI norms and introducing the PLI scheme. Key Points
Economic TimesThis is as good a bull market as it gets; there’s no threat to it: Dipan Mehta
The buoyant market conditions will continue, says Dipan Mehta, Director at Elixir Equities, and predicts a trend of vibrant IPOs, new listings and preferential issues. Mehta considers buybacks a way for managements to boost profits at a time when global macroeconomic trends may impact performance, but warns against investing in Tata Motors, one of the most volatile stocks on the Nifty 50, because of a break-even point for JLR that is too high, cash flow risk and difficulty with risk determination. Key Points
Economic TimesONGC revamp: New director to spearhead new energy, petrochemicals business
Oil and Natural Gas Corporation (ONGC) has created a new directorship for energy, petrochemicals and corporate strategy as part of a wider board reshuffle. The director for strategy and corporate affairs will be responsible for downstream petrochemicals, new energy and corporate marketing, among other tasks. Key Points
Economic TimesGovt to expedite inspection of crisis-hit Byju’s accounts
Prompted by fresh troubles hitting the edtech major BYJU’S, the corporate Affairs Ministry said it has asked its field officers to expedite and... Key Points
The Tribune IndiaMoody's downgrades Vedanta as bond restructuring gets investor nod
Vedanta Resources had last week received investor consent to restructure about $3.8 billion of its outstanding corporate bonds. Moody’s said the company is likely to face material liquidity issues over the coming 24 months and the risk of default risk remains high Key Points
mint
Kunal Bhardwaj is corporate India’s rainbow warrior who ran 7 continents with the pride flag
Kunal Bhardwaj is the first gay man from India to run marathons on all seven continents. His final frontier was Antarctica, a 10.5-kilometre run he completed in December 2023. Key Points
ThePrintFrom Russia with love: corporate bonds may get Vostro funds to boost trade settlement in rupee
Earlier this year, Russian officials said that Moscow had accumulated billions of rupees in Indian banks that couldn't be used. Industry estimates peg this amount at $7-8 billion. Until July 2, the RBI had approved 34 applications from different Russian banks for opening SRVAs in 14 Indian commercial lenders. Key Points
Economic TimesIsrael-Hamas conflict, FOMC outcome to challenge gold traders' resilience this week
The US dollar saw a boost from a combination of lackluster corporate earnings, safe-haven demand, and signs of the US economy's resilience. Notably, the US economy posted robust annualized growth of 4.9% in Q3 2023, despite higher interest rates. Core PCE prices and personal spending further reinforced the notion of sustained economic strength. Key Points
Economic TimesWomen's workforce representation surges by 17 per cent to nearly 50%: Report
The latest report by HerKey reveals that women now comprise almost 50% of employees in surveyed companies, marking a significant increase of 17% compared to 2021. The report highlights the progress made in achieving gender diversity and fostering inclusive work environments in corporate India. Key Points
FirstpostAmid buzz over cabinet reshuffle, Finance Minister Sitharaman calls on President Murmu
Union Finance and corporate Affairs Minister Nirmala Sitharaman on Monday called on President Droupadi Murmu at the Rashtrapati Bhavan here. The meeting comes amid a buzz over a possible reshuffle of the Union council of ministers. Key Points
Economic Times
How did corporate India perform in the final quarter of 2022-23?
India’s GDP grew 6.1% in Q4 2022-23, as per official estimates, higher than the 5.1% forecast in Bloomberg's survey of economists. How did India Inc perform? | Latest News India Key Points
Hindustan TimesFrom copywriter to dog walker: How ChatGPT's rise led woman to change career path
AI tool ChatGPT has caused concern about job security, with some fearing replacement by AI in their professions. A copywriter claimed she was replaced by ChatGPT at a tech startup, leading her to leave the corporate world entirely and become a dog walker. Key Points
mint10 Quotes by J.P. Morgan on Finance and Investing
John Pierpont Morgan Sr. was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age. Key Points
Times of IndiaWoman works on laptop while riding scooter, sparks chatter
A picture showing a woman from Bengaluru working while sitting behind a scooter has taken the internet by storm. it has sparked a chatter on corporate culture. | Trending Key Points
Hindustan TimesStart-ups and corporate governance: Here’s why buck stops with the investors
Investors, especially those on an institutional level, are obligated to take on the role of active owners. This includes engaging with the companies they invest in, utilising their voting rights, and participating in shareholder meetings. Key Points
Business Today
India Inc grows in record numbers, reflecting rising economic optimism
As many as 120,966 companies and LLPs were incorporated between April and September, up 11.4 per cent from 108,583 a year before, according to the latest data compiled by the ministry of corporate affairs (MCA). Key Points
Economic Times