Govt to allow individual defaulters to file for bankruptcy under IBC

Plans to notify provisions in 3 categories

by Arjit Singh Bhambra

The central government is planning to enable individual defaulters to file for bankruptcy under the existing provisions of the Insolvency and Bankruptcy Code (IBC), according to a report in Business Standard. NITI Aayog along with insolvency experts will frame the rules required for the same. While low level defaulters will be exempted from constituting a committee of creditors, the minimum requirement for an individual to file for bankruptcy is likely to be Rs.100,000. Matters pertaining to individual bankruptcy will be addressed by a debt recovery tribunal and defaulters will be allowed to plan a repayment schedule. The final provisions are likely to be notified by the end of December 2017, in three categories viz. corporate guarantors, proprietary business and individuals.

References
1. http://www.business-standard.com/article/economy-policy/govt-draws-up-rules-for-individual-bankruptcy-117091101338_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
5.3 -0.1
Consumer Sentiments Index
Base September-December 2015
95.8 0.0
Consumer Expectations Index
Base September-December 2015
93.9 0.0
Current Economic Conditions Index
Base September-December 2015
98.7 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.33 3.80 2.06 1.02
Completed projects 1.01 1.94 1.14 0.99
Stalled projects 1.13 0.70 2.66 0.64
Revived projects 0.18 0.67 0.30 0.23
Implementation stalled projects 0.82 0.33 0.68 0.61
Updated on: 22 Nov 2017 9:20AM
Quarterly Financials of Listed Companies
(% change) Dec 16 Mar 17 Jun 17 Sep 17
All listed Companies
 Income 6.2 10.2 9.8 8.6
 Expenses 6.3 11.9 10.0 9.9
 Net profit 40.3 15.8 -19.7 -18.1
 PAT margin (%) 6.1 6.0 5.3 5.9
 Count of Cos. 4,507 4,438 4,290 2,783
Non-financial Companies
 Income 5.9 11.8 10.4 8.6
 Expenses 7.2 15.6 10.7 8.6
 Net profit 24.5 -2.5 -25.1 -5.3
 PAT margin (%) 6.2 6.2 5.2 6.8
 Net fixed assets 6.9 10.0
 Current assets 2.6 2.2
 Current liabilities 8.8 10.0
 Borrowings 4.8 4.1
 Reserves & surplus 6.3 8.1
 Count of Cos. 3,488 3,439 3,342 2,037
Numbers are net of P&E
Updated on: 22 Nov 2017 9:30AM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.2 1.1 6.6
 Expenses 9.9 5.2 1.2 6.8
 Net profit -2.2 1.6 -12.9 20.2
 PAT margin (%) 3.2 3.2 2.9 6.5
 Assets 12.3 9.4 9.6 8.8
 Net worth 9.6 8.7 10.3 8.5
 RONW (%) 6.2 6.1 5.1 9.6
 Count of Cos. 23,895 23,579 20,184 3,629
Non-financial Companies
 Income 9.7 4.3 0.1 6.5
 Expenses 9.3 4.5 -0.6 7.4
 Net profit -2.7 -5.5 11.5 14.3
 PAT margin (%) 2.2 2.1 2.6 6.5
 Net fixed assets 11.6 13.4 15.1 7.3
 Net worth 8.2 7.1 10.6 7.2
 RONW (%) 5.1 4.9 5.4 11.0
 Debt / Equity (times) 1.1 1.1 1.1 0.6
 Interest cover (times) 2.0 1.9 2.0 3.7
 Net working capital cycle (days) 69 67 66 50
 Count of Cos. 19,154 19,053 16,707 2,782
Numbers are net of P&E
Updated on: 15 Nov 2017 2:29PM

Data added for HPI at Assessment prices and HPI at Market prices