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Friday, August 12, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 525 August 5, 2022

Today’s Latest Business News, Finance and Share Market News at 9:30 am on 5th August 2022

Today’s Latest Business News Transcript at 9:30 am on 5th August 2022

“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

We begin our bulletin with a major decision by the SEBI. The market regulator has initiated a forensic audit into the financial statements of beleaguered Future Retail and Future Supply Chain Solutions over concerns of improper disclosure of financial information. The Securities and Exchange Board of India has also appointed Chokshi & Chokshi LLP, a chartered accountant firm, as the forensic auditor, two Future Group companies informed the stock exchanges in separate statements. The audit is with respect to consolidated financial statements and account books of FRL and some other entities for the financial years ended March 2020, March 2021 and March 2022, it said. Another group company FSC, in a separate statement, said an audit of the company would also be conducted. The review period for FSC would be financial years 2019-20 to 2021-22, it added. Earlier on July 27, Future Lifestyle Fashions said in an exchange filing lenders had appointed GD Apte & Co, chartered accountants, to conduct a forensic audit of the firm.
Next up, all the buzz around the key RBI meet today. The Reserve Bank of India Monetary Policy Committee is expected to hike repo rate in the range of 35-50 bps on Friday and push rates to at least above its pre-covid level of 5.15% in order to check high retail inflation. It would be the third consecutive hike in the repo rate in the last three months. The central bank may also gradually withdraw its accommodative monetary policy stance as from its last policy meeting, the environment has changed – domestic inflation saw moderation, global market fear of recession has ebbed and the liquidity has tightened. RBI had signaled earlier its decision to withdraw its accommodative stance and shift towards a neutral stance while prioritising controlling inflation over growth.
Moving on to the latest on Dalal Street. Entering the final trading session of the week, SGX Nifty was up with gains, suggesting a tepid opening to the day’s trade. Global cues were mixed after Dow Jones and S&P 500 closed with losses while the tech-heavy NASDAQ gained. Asian stock markets were moving higher. Investors will today keep a close on the RBI’s Monetary Policy Committee action announcement.

In other news, the government has identified four key clauses in the now-withdrawn Personal Data Protection Bill that are likely to be either dropped or fine-tuned in the new one to facilitate ease of doing business and achieve regulatory simplicity. The industry, which includes Big Tech as well as startups, had voiced concerns about these clauses. Regulation of hardware and devices, localisation of data with retrospective effect, the need to seek regulatory nod every time cross-border flow of data is required, and penalty on global turnover for any violation, are the four areas which figure on the government’s list, sources told FE. It is likely that consultations will be held once again with the industry on these issues. For instance, regulation of hardware devices was not in the draft originally submitted by the Justice BN Srikrishna committee but was later inserted by the Joint Committee of Parliament. The industry had flagged it as one of their biggest concerns, and in all probability, this may not figure in the new Bill, which the government plans to introduce in Monsoon session of Parliament. The reason behind dropping hardware regulation from the ambit of the Bill is that its scope is too large and so it is prone to misuse, allegation and counter-allegations, and legal disputes.
Over to some economy news. E-way bills generated by businesses for inter-state commerce in July were up 18% on year and 1.5% on month, suggesting that the goods and services tax collections in August could be upwards of Rs 1.5 trillion, which is becoming the new monthly normal. At Rs 1.49 trillion, GST collections in July were up 28% on year and the second-highest ever, thanks to resurgent economic activities, improved compliance, high inflation and a broadening of the tax base. The number of e-way bills stood at 75.58 million in July, the second-highest since the system was rolled out in 2018. It was 78.16 million in March 2022, resulting in a record Rs 1.68-trillion gross GST receipts in April 2022. With a monthly average of Rs 1.5 trillion till July, FY23 gross GST receipts may exceed the target by Rs 3 trillion, allowing the Centre to appropriate an additional Rs 80,000 crore, after devolution to the states. Stricter enforcement of compliance and rebound in economic activities are contributing to the buoyancy in GST receipts.
Finally, some banking update. Soon, banks are likely to get relief from a new tax rule that effectively mandates them to deduct a 10% tax at source on the amount of debt waived by them through one-time-settlement or some other schemes, especially involving large accounts.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.

Click here to listen to yesterday evening’s Business News bulletin

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Today’s Latest Business News, Finance and Share Market News at 9:30 am on 5th August 2022Today's Latest Business News Transcript at 9:30 am on 5th August 2022 "You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express. " We begin our bulletin with a major decision by the SEBI. The market regulator has initiated a forensic audit into the financial statements of beleaguered Future Retail and Future Supply Chain Solutions over concerns of improper disclosure of financial information. The Securities and Exchange Board of India has also appointed Chokshi & Chokshi LLP, a chartered accountant firm, as the forensic auditor, two Future Group companies informed the stock exchanges in separate statements. The audit is with respect to consolidated financial statements and account books of FRL and some other entities for the financial years ended March 2020, March 2021 and March 2022, it said. Another group company FSC, in a separate statement, said an audit of the company would also be conducted. The review period for FSC would be financial years 2019-20 to 2021-22, it added. Earlier on July 27, Future Lifestyle Fashions said in an exchange filing lenders had appointed GD Apte & Co, chartered accountants, to conduct a forensic audit of the firm. Next up, all the buzz around the key RBI meet today. The Reserve Bank of India Monetary Policy Committee is expected to hike repo rate in the range of 35-50 bps on Friday and push rates to at least above its pre-covid level of 5.15% in order to check high retail inflation. It would be the third consecutive hike in the repo rate in the last three months. The central bank may also gradually withdraw its accommodative monetary policy stance as from its last policy meeting, the environment has changed – domestic inflation saw moderation, global market fear of recession has ebbed and the liquidity has tightened. RBI had signaled earlier its decision to withdraw its accommodative stance and shift towards a neutral stance while prioritising controlling inflation over growth. Moving on to the latest on Dalal Street. Entering the final trading session of the week, SGX Nifty was up with gains, suggesting a tepid opening to the day’s trade. Global cues were mixed after Dow Jones and S&P 500 closed with losses while the tech-heavy NASDAQ gained. Asian stock markets were moving higher. Investors will today keep a close on the RBI's Monetary Policy Committee action announcement. In other news, the government has identified four key clauses in the now-withdrawn Personal Data Protection Bill that are likely to be either dropped or fine-tuned in the new one to facilitate ease of doing business and achieve regulatory simplicity. The industry, which includes Big Tech as well as startups, had voiced concerns about these clauses. Regulation of hardware and devices, localisation of data with retrospective effect, the need to seek regulatory nod every time cross-border flow of data is required, and penalty on global turnover for any violation, are the four areas which figure on the government’s list, sources told FE. It is likely that consultations will be held once again with the industry on these issues. For instance, regulation of hardware devices was not in the draft originally submitted by the Justice BN Srikrishna committee but was later inserted by the Joint Committee of Parliament. The industry had flagged it as one of their biggest concerns, and in all probability, this may not figure in the new Bill, which the government plans to introduce in Monsoon session of Parliament. The reason behind dropping hardware regulation from the ambit of the Bill is that its scope is too large and so it is prone to misuse, allegation and counter-allegations, and legal disputes. Over to some economy news. E-way bills generated by businesses for inter-state commerce in July were up 18% on year and 1.5% on month, suggesting that the goods and services tax collections in August could be upwards of Rs 1.5 trillion, which is becoming the new monthly normal. At Rs 1.49 trillion, GST collections in July were up 28% on year and the second-highest ever, thanks to resurgent economic activities, improved compliance, high inflation and a broadening of the tax base. The number of e-way bills stood at 75.58 million in July, the second-highest since the system was rolled out in 2018. It was 78.16 million in March 2022, resulting in a record Rs 1.68-trillion gross GST receipts in April 2022. With a monthly average of Rs 1.5 trillion till July, FY23 gross GST receipts may exceed the target by Rs 3 trillion, allowing the Centre to appropriate an additional Rs 80,000 crore, after devolution to the states. Stricter enforcement of compliance and rebound in economic activities are contributing to the buoyancy in GST receipts. Finally, some banking update. Soon, banks are likely to get relief from a new tax rule that effectively mandates them to deduct a 10% tax at source on the amount of debt waived by them through one-time-settlement or some other schemes, especially involving large accounts. You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories. Click here to listen to yesterday evening's Business News bulletin
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