Budget 2018: Growth in fiscal 2019 seen at 7-7.5%, says Economic Survey 2017-18
The Economic Survey for FY18 tabled in Parliament on Monday predicted India’s FY19 real gross domestic product (GDP) growth in a rather broad range of 7-7.5%, up from a likely, more-closely-read 6.75% in the current financial year, but still below the potential rate of 8% (the Central Statics Office’s advance estimate put FY18 growth at a “conservative” 6.5% recently). A stabilizing goods and services tax (GST), the likelihood of a revival of exports — thanks to a “near synchronous” global recovery — and private investments, “the only two truly sustainable (growth) engines”, are what the survey primarily invests its confidence in.
Tax uncertainty over insolvency deals likely to go
The government may consider resolving two of the biggest tax roadblocks looming over a successful conclusion of the insolvency process in the upcoming Budget, two people close to the development said. The government may allow carrying forward of losses for eight years for buyers of companies in the insolvency process. This is not allowed under the current tax laws and buyers have been asking for such a relief.
Billionaire Singh brothers accused in lawsuit of siphoning money
India’s billionaire Singh brothers, already embroiled in one international legal battle over alleged fraud, are being accused of “diversion, siphoning and digression of assets” by a New York-based investor in a lawsuit filed in the High Court of Delhi. The lending arm of Malvinder and Shivinder Singh’s publicly traded financial services firm, Religare Enterprises Ltd., made 21 loans to a number of seemingly independent companies that routed at least $300 million back to privately held Singh firms on the same day, according to a central bank investigation of the company’s fiscal 2016 books filed as part of the 700-page suit in November.
Stressed assets bid: JSW to bid jointly with SSG for Uttam Galva
Sajjan Jindal’s JSW Steel, which is scouting for stressed steel assets, has decided to team up with Hong Kong-based asset management firm SSG Capital Management to bid for Uttam Galva Steels. Sources said that earlier SSG Capital was in the running to independently bid for Uttam Galva. Uttam Galva, which figures in the second list of the Reserve Bank of India’s 28 defaulting companies and is in the process of being referred to the National Company Law Tribunal (NCLT) by a consortium of lenders led by State Bank of India, will be a strategic fit for JSW.
KPIT Tech board okays Birlasoft merger with itself
KPIT Technologies today said its board has approved plan to amalgamate Birlasoft with itself, while engineering business of the company will be demerged. “The Board has approved a draft composite scheme for amalgamation of Birlasoft (India) Ltd with the company and demerger of the engineering business of the company into KPIT Engineering Ltd, a wholly owned subsidiary of the company,” it said in a regulatory filing. As per the proposed merger, shareholders of Birlasoft will receive 22 equity shares of the combined KPIT-Birlasoft for every nine equity shares of Birlasoft.
Economic Survey 2017-18: Insolvency and Bankruptcy Code – Ratio of firms facing liquidation to resolution 3:1
The number of companies facing liquidation under the Insolvency and Bankruptcy Code (IBC) is thrice that of companies where a resolution plan has been approved, the Economic Survey said. According to the Economic Survey, of the 525 insolvency petitions filed in the National Company Law Tribunal (NCLT), 30 companies have been ordered to be liquidated, 10 companies have got their resolution plans approved, 34 have been closed by appeal or review and 451 companies are still undergoing the process.
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