Govt retains subsidiary limit

Companies (Amendment) Bill to be tabled in monsoon session

by Janhavi Behere

The government has retained the provision which restricts layers of subsidiaries that companies can have at two. The provision was retained in the Companies (Amendment) Bill to ensure that operations of companies remain transparent. The restriction makes it difficult for companies to route transactions via a maze of different entities. The corporate sector had lobbied hard stating that this provision hinders flexibility in operations. The bill is likely to be tabled in the monsoon session of the Parliament.

References
1. http://economictimes.indiatimes.com/news/economy/policy/government-opts-for-transparency-retains-subsidiary-limit/articleshow/58275182.cms
CMIE STATISTICS
Unemployment Rate
Per cent
4.0 +0.0
Consumer Sentiments Index
Base September-December 2015
99.3 +0.2
Consumer Expectations Index
Base September-December 2015
101.5 0.0
Current Economic Conditions Index
Base September-December 2015
96.0 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 16 Sep 16 Dec 16 Mar 17
New projects 1.45 2.35 1.42 2.80
Completed projects 0.90 2.19 0.87 1.38
Stalled projects 1.40 0.64 1.01 0.32
Revived projects 0.43 0.51 0.17 0.62
Implementation stalled projects 0.50 0.57 0.80 0.26
Updated on: 26 Apr 2017 12:20PM
Quarterly Financials of Listed Companies
(% change) Mar 16 Jun 16 Sep 16 Dec 16
All listed Companies
 Income -0.1 -0.9 2.1 6.4
 Expenses 0.9 -0.3 1.9 6.7
 Net profit -29.1 -4.1 14.7 36.5
 PAT margin (%) 4.9 6.9 6.9 6.0
 Count of Cos. 4,516 4,487 4,471 4,433
Non-financial Companies
 Income -2.1 -2.5 0.6 6.1
 Expenses -3.9 -2.9 -0.2 7.6
 Net profit 5.0 9.6 26.8 20.6
 PAT margin (%) 6.2 7.4 6.9 6.1
 Net fixed assets 4.0 -9.2
 Current assets 3.2 8.1
 Current liabilities 10.7 11.6
 Borrowings 6.9 3.1
 Reserves & surplus 7.8 8.4
 Count of Cos. 3,518 3,497 3,482 3,459
Numbers are net of P&E
Updated on: 26 Apr 2017 12:29PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.0 9.6 4.9 0.8
 Expenses 12.2 9.5 4.9 1.0
 Net profit 1.2 -3.7 2.2 -13.7
 PAT margin (%) 3.6 3.2 3.2 3.1
 Assets 14.1 12.3 9.1 8.2
 Net worth 9.5 9.6 8.5 7.2
 RONW (%) 6.8 6.0 6.0 5.4
 Count of Cos. 23,921 21,271 20,226 16,111
Non-financial Companies
 Income 11.3 9.3 4.0 -0.3
 Expenses 11.6 8.9 4.1 -1.0
 Net profit -8.5 -5.0 -4.1 11.3
 PAT margin (%) 2.4 2.1 2.1 2.8
 Net fixed assets 12.8 11.5 12.9 12.4
 Net worth 7.7 8.5 7.0 6.5
 RONW (%) 5.5 4.8 4.8 5.7
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 1.9 1.9 2.1
 Net working capital cycle (days) 72 69 68 68
 Count of Cos. 18,454 16,748 15,978 13,008
Numbers are net of P&E
Updated on: 21 Apr 2017 9:39AM

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