Mumbai, Mar 5 : The pace of growth in country’s apparel exports will depend on the industry’s ability to wade through the new taxation and export incentive regime and intense global competition, says a report.
While transition to the new taxation and export incentive regime has posed liquidity challenges for the industry, intense competitive pressures in the global market, particularly in light of impending trade agreements and foreign currency movements, pose additional challenges, rating agency Icra said in its report today.
The agency also pointed out that uncertainty on the apparel exports to the UAE looms, in light of inexplicable trends witnessed in the recent months.
“The accommodative stance taken by the government by way of upward revision in export incentives in November 2017, has addressed one of the issues that the segment is facing.
However, sustainability of growth remains contingent on how the scenario on the other fronts pans out,” said Jayanta Roy, senior vice-president and group head, Icra.
Post upward revision in export incentives, India reported a 6-20 per cent growth in apparel exports to key nations like the US, the UK, Germany, France, Spain during November-December 2017, the report said.
However, despite this, the overall apparel exports were down by 1 per cent in the first month of FY18, it added.
According to Icra, the decline has been primarily driven by the sharp dip in exports to the UAE market.
UAE had emerged as one of the prominent apparel export destinations for India, with its share increasing to 23 per cent in FY17 from 12 per cent in FY14, the report showed.
Particularly for the 10-month period ending June 2017, India’s apparel exports to the UAE had grown at a sharp pace (56 per cent), it said, adding that it equally declined fast by 45 per cent since June 2017.
Excluding the trade with the UAE, India’s apparel exports are estimated to have stood 3-4 per cent higher in the first 10 months of FY18.
As for the global scenario, apparel trade has remained subdued for the third consecutive year, expanding by just 1 per cent in calender year 2017 on a low base, following a 2 per cent and 5 per cent decline witnessed in 2016 and 2015, respectively.
Ray said the competitiveness of the Indian apparel exporters will also depend on the movement in foreign exchange rates.
“This remained a key challenge last year, with the Indian rupee appreciating by 3 per cent in CY2017 compared to 1-3 per cent depreciation in currencies of other key apparel exporting nations, that is China, Bangladesh and Vietnam,” he added.
Bijapur (Chhattisgarh), Mar. 03 : In an anti-Naxal operation by Telangana and Chhattisgarh state police, at least 10 naxals, including six women, were killed on Friday in Chhattisgarh’s Bijapur district.
“Telangana Police’s Greyhounds swooped on a Naxal camp in the district in which a personnel of the elite force also lost his life. The bodies of the Naxals and martyred Greyhound have been taken to Bhadrachalam in Telangana by an IAF chopper for post-mortem,” officials said.
“Two naxal bodies have been identified, one as Sanjeev, who is a Deputy Commander, action team member and Pedda Budri (female cadre), protection team member of top naxal leader Hari Bhushan. While Susheel Kumar, a junior commando of the Greyhounds, scummed to his injuries,” they added.
Three other police personnel were also injured and airlifted.
Police recovered an AK-47, an SLR rifle, five INSAS rifles, one .303 rifle, a pistol, a Sony wireless set, three laptops, detonators, Rs 41,000 in cash, and other explosive materials and literature from the site.
“The incident took place near Pujari Kanker area of Bijapur. A joint team of Telangana and Chhattisgarh Police on specific information carried out this operation,” Bijapur Superintendent of Police (SP) Mohit Garg told ANI.
“10 naxals have been killed. We have recovered automatic weapons and other ammunitions. It was a very successful operations,” Garg added.
Although the identity of eight naxal bodies are not yet known, officials believes that some top naxal leaders could be among those killed.
According to media reports, the encounter site was close to the Jayashankar Bhupalpally district in Telangana.
Among the naxals who have been killed, top leader Hari Bhushan alias Jagan, State Committee Secretary of the group and another key leader Chukka Rao has been killed in the attack. However, the officials are yet to confirm it.
According to reports, Hari Bhushan’s wife Samakka has also been killed in the encounter.
Hari Bhushan was carrying a bounty of Rs. 30 lakh on his head and was an accused in at least 50 criminal cases.
Mumbai , March 2: A Mumbai court on Friday sent Punjab National Bank’s (PNB), Internal Chief Auditor (retired) Bishnubrata Mishra to the Central Bureau of Investigation (CBI) remand till March 14 in connection with a multi-dollar scam.
Sharma was arrested yesterday. He was responsible for auditing the systems and practices of the PNB for the period 2011-2015 in the Brady House Branch.
The PNB detected a billion dollar scam, earlier this year, in which Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.
The Enforcement Directorate (ED) provisionally attached immovable properties of Nirav Modi and companies controlled by him.
The scam, which allegedly started in 2011, was detected in the third week of January this year, after which the PNB officials filed a complaint with the CBI on January 31.
New Delhi , Mar. 2 : In the wake of the recent banking scams reported, the government has directed public sector banks (PSBs) to consolidate nearly 35 overseas operations without affecting the banks’ international presence in these countries.
In this regard, 69 operations were identified for further examination, including bank branches, joint ventures, subsidiaries, remittance centres and representative offices.
As per the Secretary of the Department of Financial Services(DFS), Rajeev Kumar, the proposal of consolidation aims to improve cost efficiency and synergies in the overseas market.
The ministry confirmed that a total of 216 overseas operations will be examined to ease the rationalisation of overseas operations.
Furthermore, non-viable operations in the overseas market, the ministry proposed, would be terminated for greater cost efficiency and synergy. Operations in the same geography will be consolidated, and equity stakes will be consolidated in the case of joint ventures having multiple PSB partners.
A number of banking cams have come to the forefront in the recent past, the most prominent one being the 1.77 billion dollar Punjab National Bank (PNB) fraud involving top jewellery designer Nirav Modi and others.
In the wake of these scams, there has been a greater nudge for complete privatisation of PSBs.
On Tuesday, the DFS secretary announced a 15-day deadline to the PSBs to take “pre-emptive” action for identifying gaps and to gear up for rising operational and technical risks.
New Delhi , Mar. 2 : In a major move to implement stricter supervision of auditing firms and individuals, the Union Cabinet chaired by Prime Minister Narendra Modi approved the proposal for establishing the National Financial Reporting Authority (NFRA).
The decision aims at deploying NFRA as an independent regulator for the auditing profession, which is one of the key changes brought in by the Companies Act, 2013, and makes way for the creation of one post of chairperson, three posts of full-time members and one post of secretary for NFRA.
The decision is expected to result in improved foreign/domestic investments, enhancement of economic growth, supporting the globalisation of business by meeting international practices, and assist in further development of audit profession.
The jurisdiction of NFRA for investigation of Chartered Accountants (CA) and their firms under section 132 of the act would extend to listed companies and large unlisted public companies, the thresholds for which shall be prescribed in the rules. The central government can also refer such other entities for investigation where public interest would be involved.
However, the Centre clarified that the inherent regulatory role of the Institute of Chartered Accountants of India (ICAI) as provided for in the Chartered Accountants Act, 1949 shall continue in respect of its members in general and specifically with respect to audits pertaining to private limited companies, and public unlisted companies below the threshold limit to be notified in the rules. The ICAI shall also continue to play its advisory role with respect to accounting and auditing standards and policies by making its recommendations to NFRA.
Furthermore, the Quality Review Board (QRB) is slated to continue quality audit in respect of private limited companies, public unlisted companies below the prescribed threshold and also with respect to the audit of those companies that may be delegated to QRB by NFRA.
The need for such a committee emerged post the recent banking sector scams that surfaced in the recent past, particularly the 1.77 billion dollar Punjab National Bank (PNB) fraud.
With this committee in place, the Centre envisions stricter enforcement of auditing standards and greater quality of audits to strengthen the independence of audit firms, quality of audits and, therefore, enhance investor and public confidence in financial disclosures of companies.
New Delhi, Mar 2: In a bid to tighten noose around fugitives like diamond merchant Nirav Modi and Vijay Mallya, the Cabinet on Thursday approved the Fugitive Economic Offenders Bill that provides for confiscating all assets of absconding fraudsters and loan defaulters.
The proposed law aims to impound and sell assets of Nirav Modi-type escapees with a view to quickly recover dues. The law will apply to defaulters who have an outstanding of Rs 100 crore or more and have escaped from the country.
Finance Minister Arun Jaitley said the Bill, which will be taken to Parliament for approval in the second half of the Budget session beginning March 5, defines a fugitive offender as someone against whom a court has issued an arrest warrant for a scheduled offence and who leaves or has left India so as to avoid criminal prosecution, or refuses to return to India to face trial.
The new law is different from the Prevention of Money Laundering Act, which also provides for confiscation of assets of economic offenders, he said.
Under PMLA, only profit of crime is confiscated and that too upon conviction. The new law extends to all assets irrespective of whether it is acquired as a result of crime or not, he said. “This is triggered by the offender being a fugitive”.
“A trial of fugitive will never be complete,” he said, reasoning why confiscation of assets has been provided for. The new law will apply “the moment warrant is issued (and) the court decides the man is not submitting,” he added.
The law, though it was announced in the Budget for 2017-18, has been hastened after Nirav Modi and his uncle Mehul Choksi allegedly defrauded state-owned Punjab National Bank (PNB) of Rs 12,700 crore and left the country and are refusing to cooperate with law enforcement agencies.
The new law will allow quicker recovery of dues through a special court from such absconding offenders.
“In the last Budget, there was an announcement that the government bring law to confiscate assets of fugitives under economic offences. That has been approved by (the) cabinet today,” Jaitley said.
He said the law will apply to new and old cases of persons who have fled the country to avoid prosecution.
All assets, not just proceeds of crime, will be confiscated of an offender fleeing the country, he said, adding that offender cannot pursue any civil case in the country.
The Cabinet also approved setting up of a National Financial Reporting Authority (NAFRA) to regulate erring auditors.
Under first instance, auditors of all listed companies and unlisted large companies will be covered under NAFRA.
New Delhi, Mar;1: The government approved the continuation of Prime Minister’s Employment Generation Programme (PMEGP) beyond the 12th Plan period for three years to 2019-20 with a total outlay of Rs 5,500 crore.
The scheme will create sustainable estimated employment opportunities for 15 lakh persons in three financial years.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here.
The Khadi and Village Industries Commission (KVIC) is the nodal implementation agency for the PMEGP at the national level. At the state/district level, state offices of KVIC, Khadi and Village Industries Boards (KVIBs) and District Industry Centres (DIC) are the implementing agencies.
“A minimum target of 75 projects/district is awarded to all districts of the country to achieve inclusive growth. Higher rate of subsidy (25-35 per cent) will be applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas,” an official statement said.
The applications are invited and processed online on the PMEGP-e-portal. The scheme’s targets are fixed taking into account the extent of backwardness of state; extent of unemployment; extent of fulfilment of previous year targets; population of state/union territory; and availability of traditional skills and raw material.
PMEGP is a major credit-linked subsidy programme being implemented by the Ministry of MSME since 2008-09. The Scheme is aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth in rural as well as urban areas.
A total of 4.55 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9,564.02 crore providing employment to an estimated 37.98 lakh persons from inception till January 31, 2018.
Modification made in the scheme include a second loan of up to Rs 1 crore to existing and better performing PMEGP units for upgrading with subsidy of 15 per cent; Mandatory Aadhaar and Pan card and Geo-tagging of units.
The negative list under PMEGP had also been amended allowing serving/selling non-vegetarian food at Hotels/Dhabas and Off Farm/Farm Linked activities.
New Delhi, Feb 28: The total foodgrains output for 2017-18 is estimated at a record 277.49 million tonnes despite expected decline in the production of wheat and oilseeds, as per the 2nd Advance Estimates of Foodgrains Production released by the Union Agriculture Ministry here on Tuesday.
Last year’s total foodgrains output was 275.11 million tonnes.
The output of wheat is expected to be lower by 1.40 million tonnes compared to the previous best of 98.51 million tonnes in 2016-17. This year wheat output is expected to be 97.11 million tonnes mainly because of lower sown area.
Coarse cereals output is estimated at a record 45.42 million tonnes against 43.77 million tonnes last year, while total oilseeds output is expected to be 29.88 million tonnes which is lower by 1.39 million tonnes than last year.
The output of rice is expected to be 109.70 million tonnes, 1.31 million tonnes higher than last year.
The total pulses production is likely to be a record 23.95 million compared to 23.13 million tonnes last year.
With a significant increase of 47.16 million tonnes over 2016-17, the total production of sugarcane is estimated at 353.23 million tonnes.
Cotton output at 33.92 million bales (of 170 kg each) is higher than the previous year’s production of 32.58 million bales.
Jute and Mesta output is estimated at 10.51 million bales (of 180 kg each) is lower than during 2016-17.