Gold ETF Assets in India Drop for Third Month as Price Plunge

The value of assets in gold-backed funds in India, the world’s biggest consumer, fell for a third month in June as a bear market in bullion deepened.Holdings in exchange-traded funds, or ETFs, declined 9.2 percent to 96.1 billion rupees ($1.6 billion) as of June 30 from a month earlier, the Association of Mutual Funds in India said on its website, without giving data on volume. The value of assets has lost 20 percent since reaching a record 120.6 billion rupees in January, association data showed. Gold fell 4.5 percent in rupee terms in June, falling for a 10th month.

Source : http://www.bloomberg.com/news/2013-07-10/gold-etf-assets-in-india-drop-for-third-month-as-prices-plunge.html

Add comment July 12th, 2013

Dollar inflows from NRIs into bank deposits plunge in Aug

Dollar inflows from non-resident Indians (NRIs) into bank deposits unexpectedly plunged in August after having risen sharply for three consecutive months, data from the Reserve Bank of India (RBI) showed. Non-resident (external) rupee accounts saw an inflow of a measly $58 million during August, sharply lower than $1.01 billion in July.Bankers said that since deposit rates were slashed for NRIs after domestic rates were cut, incremental flows could have slowed. Following the RBI’s move to cut the Statutory Liquidity Ratio (SLR) by 100 basis points in July, several banks slashed their domestic deposit rates.

Source : http://www.indianexpress.com/news/dollar-inflows-from-nris-into-bank-deposits-plunge-in-aug/1015660/

Add comment July 12th, 2013

Interest income lifts Induslnd Bank Q1 net 42%

IndusInd Bank reported a 42 per cent jump in net profit to Rs 335 crore in the first quarter ending June 2013, thanks to robust growth in interest income and drop in bad loans. The private sector lender had posted a net profit of Rs 236 crore in the same quarter last fiscal.Net interest income (difference between interest earned and expended) soared 40 per cent to Rs 679 crore. Other income rose 48 per cent on the back of increase in fee and treasury incomes.Net non-performing assets (NPAs) declined to 0.21 per cent from 0.27 per cent in Q1 FY13. However, gross NPAs in the quarter increased to 1.06 per cent from 0.97 per cent.For the first time, the bank also set aside floating provisions of Rs 50 crore. This improved the bank’s provision-coverage ratio to 80 per cent from 70 per cent.

Source : http://www.thehindubusinessline.com/industry-and-economy/banking/interest-income-higher-margins-lift-indusind-bank-net-42/article4901599.ece

Add comment July 12th, 2013

Guidelines on telecom M&A by month end: Sibal

The government plans to announce the long-awaited mergers and acquisitions guidelines by this month end, paving the way for consolidation in the telecom sector. “I am sure that before 31st of July that policy will be in place, the guidelines for mergers and acquisitions,” law and telecom minister Kapil Sibal said on the sidelines of Assocham’s roundtable on the legal system. The Indian telecom sector has at present around 13 mobile phone service providers with some of them expected to go for consolidation once the final guidelines are in place. “Telecom operators are talking to each other. There are three Indian service providers that are looking for significant stake sale but waiting for clear guidelines,” said an executive of telecom company, who did not wish to be identified.

Source : http://www.financialexpress.com/news/guidelines-on-telecom-m-a-by-month-end-sibal/1140264

Add comment July 12th, 2013

Need to include insurance products in disaster mgmt policy

The recent calamity in Uttarakhand and the ensuing damages have prompted the government to think of including insurance products in the National Disaster Management Policy.”It is perhaps necessary to embed insurance products into the National Disaster Management Policy to bring out the role of insurers and reinsurers in meeting the objective of the national policy,” said Union Minister of State for Finance Namo Narain Meena at the inaugural address of the eighth meeting of Asian Forum of Insurance Regulators here.Insurance plays an important role in providing relief to the affected areas and lives after a catastrophic event, he further said.”In India, till recently, the approach to disaster management has been reactive and relief centric. However, a paradigm shift has now taken place at the national level from the relief centric syndrome to holistic and integrated approach with emphasis on prevention, mitigation and preparedness,” he added.

Source : http://www.business-standard.com/article/economy-policy/need-to-include-insurance-products-in-disaster-mgmt-policy-113071000785_1.html

Add comment July 12th, 2013

I-T dept net catches small transactions, too

65 year old Prabha Mishra, who has never earned any income in life, was shocked to receive a letter from the income tax department recently. It said the Directorate of Intelligence & Criminal Investigation had information about term deposits she made last year but she did not pay any tax on the interest earned. Mishra had opened the term deposits from the money she got as provident fund after her husband’s death.The income tax department has now asked her to report at its office with details of the deposits, failing which a penalty of up to 300 per cent of the tax amount would be imposed on her. Similarly, Arun Srivastava, who changed jobs in a year and took benefit of income tax exemptions under Section 80C twice, has received a letter asking him to pay the tax correctly or face a penalty.

Source : http://www.business-standard.com/article/economy-policy/i-t-dept-net-catches-small-transactions-too-113071100023_1.html

Add comment July 12th, 2013

The rise of smart beta

INVESTORS face a quandary. Cash offers a return of virtually zero in many developed countries; government-bond yields may have risen in recent weeks but they are still unattractive. Equities have suffered two big bear markets since 2000 and are wobbling again. It is hardly surprising that pension funds, insurers and endowments are searching for new sources of return.Step forward “smart beta”, the latest bit of jargon from the fund-management industry. “Alpha” is the skill required to choose individual assets that will outperform the market; “beta” is the return achieved from exposure to the overall market, for example via an index fund. “Smart beta” is an approach that tries to enhance the return from tracking an asset class by deviating from the traditional “cap-weighted” approach, in which investors simply buy shares or bonds in proportion to their market value.

Source : http://www.economist.com/news/finance-and-economics/21580518-terrible-name-interesting-trend-rise-smart-beta/print?goback=%2Egde_84846_member_256139258

Add comment July 10th, 2013

Keeping a close watch on risks in audits

The collateral damage for the accounting and auditing industry from Enron’s fall has led to the rewriting of auditing theory. Auditing moved away from a standard scope approach to a risk-based one.ASSESSMENT OF RISK Today, an audit includes assessing the risks of material misstatement to obtain evidence about the amounts and disclosures in financial statements. Therefore, an auditor shall design and develop responses to address the risk of material misstatement, including specific responses to issues arising from the audit.

Source : http://www.thehindubusinessline.com/features/taxation-and-accounts/keeping-a-close-watch-on-risks-in-audits/article4750415.ece

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Setting sights on international practices

The Ministry of Corporate Affairs, vide its notification dated February 28, 2011, issued the Revised Schedule VI format for the preparation of separate financial statements for all companies other than insurance and banking, those engaged in generation or supply of electricity and other class of companies governed by some other enactments. It is applicable for accounting periods commencing on or after April 1, 2011, and substantially changes the format for financial statements.

Source : http://www.thehindubusinessline.com/features/taxation-and-accounts/setting-sights-on-international-practices/article4750412.ece

Add comment July 10th, 2013

New tax refund norms for specified serivces

The finance ministry has issued a new notification (no. 12/2013-ST dated 1.7.2013) for grant of exemption or refund of tax on services received by developers and units in special economic zones (SEZ) and used for authorised operations. The idea seems to be to make it easier to claim exemption at the outset from payment of service tax on all services exclusively used for authorised operations and to enable claim of partial refund of tax on services that may be only partly used for authorised operations.The earlier notification (now superseded) allowed such ab initio exemption of tax on services wholly consumed within the SEZ.That exemption was linked to the place of performance of the service and the location of immovable properties or assets in the SEZ, according to Rules 4 and 5 of the Place of Provision of Services Rules, 2012. Now, that link has been done away with.

Source : http://www.business-standard.com/article/economy-policy/new-tax-refund-norms-for-specified-services-113070800036_1.html

Add comment July 10th, 2013

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