OPINION, P6 ECONOMY, P2 INTERNATIONAL, P4 SANJAY KAUL 20-YEAR-OLD CVs US TARIFF Rope in the private sector to create well-run markets to help farmers prosper Scrap policy to seek Cabinet nod in a month: Gadkari Xi-led China appeals for cooperation, warns 'trade war' helps none EDITORIAL Don’t just threaten Zuckerberg, bring in your privacy law NEW DELHI, MONDAY, MARCH 26, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOL.XLIV NO. 20, 18 PAGES, `5.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E Pradip Shah, IndAsia FundAdvisors chairman Paresh Sukthankar, HDFC Bank deputy MD Amit Chandra, Bain Capital MD S Ramadorai, formerTCS chairman WWW.FINANCIALEXPRESS.COM READ TO LEAD Ajay Srinivasan,Aditya Birla Capital CEO CFO JURY 2018 Bangladesh The jury is in, countdown to FE CFO Awards begins FE BUREAU Mumbai, March 25 IN THE NEWS India, China to discuss ways to boost trade TRADE MINISTERS AND senior officials of India and China would discuss ways to boost two-way commerce and reduce trade deficit in the Joint Economic Group meeting on Monday, reports PTI. The meeting assumes significance as India has time and again raised the issue of heavy trade imbalance. CORPORATE INDIA HASN'T had it easythese past fewyears. The twin disruptions to the economyfromdemonetisation andtheGSTrolloutinJuly2017 haverequiredfirmstoadjustto a whole new way of working. The introduction ofIND-ASalsosaw chief financial officers under pressure as they migrated to the new system of accounting. However, even in these difficult times, there are companies that have managed to stay ahead of the pack, those that have bucked the trend. These stand-out performanceswereselectedbytheFE CFO Awards 2018 jury headed by S Ramadorai, former TCS chairman; Paresh Sukthankar, deputy managing director, HDFC Bank; Amit Chandra, managing director, Bain Capital; Pradip Shah, chairman, IndAsia Fund Advisors; and AjaySrinivasan,chiefexecutive officer,Aditya Birla Capital. Picking winners from thousands of companies isn’t easy. The judges assessed the performances of companies taking into account both how the sector had performed and how the company had fared relative to others in the sector. They were pleasantly surprised with the number of firms that had put up a good showin a difficult environment; the return ratios of many of the companies were truly spectacular. Much of the numbercrunching was taken care of by the team at Deloitte which sifted through reams of data, running checks to ensure nothing slipped their attention. Several parameters were taken into account including profit after tax (PAT), current ratio, return on capital PRICE COMPENSATION ● JEEVAN JYOTI Insurers lose 10-20% in PM life scheme MP not to support farmers Scraps Bhavantar Bhugtan Yojana for 3 rabi crops, seeks bailout by Centre PRABHUDATTA MISHRA New Delhi, March 25 THE MADHYA PRADESH governmenthasdecidedtodiscontinue its price-deficiency support scheme Bhavantar Bhugtan Yojana (BBY) for three keycropsaspriceshave plunged below their respective MSPs. U-TURN ■ Mandi rates plunge below MSP for three key rabi crops ■ Withdrawal exposes unviability of such price support steps ■ Over 12 lakh MP farmers already registered under BBY Mandi rates for chana and masur are now more than a quarter below their respective MSPs jacking up the potential cost of the scheme.The state is knocking on the Centre’s doors forabailout.Thestate’sdecision, barelyaweek before the start of the rabi procurement season, amountstoaU-turn;itwasonly in earlyFebruarythat an extension of the scheme,launched in October last year for kharif crops,was announced. The withdrawal exposes the unviabilityofsuchpricesupport measures,being announced by a clutch of states, even as the CentreisformulatingtheirpanIndia alternatives. Insuring insurers (Claims ratio, %) 150 100 0 Continued on Page 2 Mining disaster ` crore Coal India cash reserves 38,000 Fines levied on Coal India already 41,000 Likely total fines on Coal India Fines levied on other miners in Odisha PMJJBY PMSBY CHIRAG MADIA Mumbai, March 25 Law soon to deal with mining crisis THE GOVERNMENTISlooking at the possibility of clarifying an interpretation of the Mines &Minerals(DevelopmentRegulations)orMMDRActtoundo the damage caused by what officials call a “retrospective reinterpretation” of Section 21(5), as a result of which the Supreme Court passed an adverse judgment lastAugust. Whether the law will be passedinParliamentisnotclear given the long disruption,so an ordinance can also be considered next month. The move, 110 50 `41,000-CR CIL FINE SURYA SARATHI RAY New Delhi, March 25 180-200 200 1,20,000 19,260 however,ispoliticallydangerous sinceitwillbeseenasameansto protectlargeminingfirms,both private and publiclyowned. Immediately after the SC judgment,the Odisha government levied fines of `19,260 crore on various mines; and between Odisha and Jharkhand, fines of `41,000 crore have already been levied on Coal India and it is expected to go up to `1,20,000 crore since the scope of Section 21(5) has been broadened largely by SC. Till the SC judgment, Section 21(5), which dealt with unlawful mining, was only interpreted to mean mining outside the lease area. LIFEINSURANCECOMPANIES have made losses of around 10%inthePradhanMantriJeevan Jyoti BimaYojana (PMJJBY) this year.Compared to the premium of around `1,756 crore collected so far in FY18, insurancefirmshavereceivedclaims for `1,931 crore.A total of 5.3 crore persons have insured themselves under the scheme thatcharges`330peryearfora lifecoverof`2lakh.LICcharges `1,529 for a `6 lakh cover for a 20-year-old,goingupto`6,273 fora 45-year-old. Insurers are likelyto ask the government for a rate revision fromthecurrent`330to`350400,saytop industryofficials. Continued on Page 2 Continued on Page 2 DIGITAL INDIA UPI-QR combo to push small shops to digitise WITH THE UPI (Unified Payments Interface) and the Bharat QR code, now effectively merged, banks and fintechs should find it a lot easier toconvincesmallermerchants togodigital.That’sbecausethe QR mode costs a fraction of what a PoS (point of sales) machine does. While the PoS machine can set the merchant back by anywhere between `6,000 and `10,000, the QRmode costs just `50. ILLUSTRATION: ROHNIT PHORE SHRITAMA BOSE Mumbai, March 25 Though a potent one, the combine is not going to be easy to change mindsets of smaller vendors; transaction volumes, sofar,havebeenfairlysubdued. Some incentives for both merchants and consumers,may do the trick. The total volume of digital transactions so far in 2017-18 is nearing 10.5 billion — worth `1,284 lakh crore — these include transactions via IMPS, NEFT, UPI, debit and credit cards at POS,mobilewallets and mobile banking. Continued on Page 2 employed (ROCE) and the debt-equity ratio; equal weightages were assigned to the PAT and the RoCE and three-yeardatawas taken into account. For the current ratio and the debt-equity ratio the data was considered as of March, 31, 2017. This helped Deloitte to come up with a manageable shortlist. While the financial performance of the contenders was the starting point, it was the perspective that the members of the jury brought to the table that determined who the final winners were. Not surprisingly, most of the winning candidates were those where the management was good. Every candidate’s performance was discussed in detail and these companies were compared with peers. More often than not, the contest was a keen one but in a couple of instances, there were clear winners. Those companies that walk away with the awards can be sure they’ve done a good job given their performances have been judged by a very experienced and highlycompetent team of professionals.
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.