OPINION, P2 MIND & GAMES Calculate price of a trade war IDEA EXCHANGE HOW LONG CAN WE LIVE? THE LIMIT HASN’T BEEN REACHED, FINDS STUDY Arvind Subramanian The mortality rate flattens among the oldest of the old, a study of elderly Italians concludes, suggesting that the oldest humans have not yet reached the limits of life span Page 10 ACROSS THE AISLE, P CHIDAMBARAM Vol 11 No. 18 ‘How do you get deeper trust in the State, its credibility, its legitimacy in regulating capital’ Page 4 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM SPOTLIGHT WOMEN ONTOP MUMBAI SUNDAY, JULY 1, 2018 20 Pages, `10 REELS ON WHEELS READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE NEW STEEL GIANT Tata Steel clinches JV with Thyssenkrupp Mallya told to appear in court on August 27 ● To boost 5G and Internet of Things ● Thyssenkrupp Tata Steel, a 50-50 venture, to be Europe’s No. 2 steelmaker Mobile movie theatres are taking the cinematic experience back to the hinterlands Page 9 WORDSWORTH UNCLE SAM IN OUR BACKYARD The Most Dangerous Place: A History of the United States in South Asia presents a rich temporal tapestry of US presence and role in south Asia since the 17th century Page 5 TATASTEELAND Germanindus- trial group Thyssenkrupp AG have signed definitive agreements to combine their Europeansteelbusinessesina50-50 jointventureinanewcompany, said a company statement on Saturday.The move follows the signing of a memorandum of understanding signed by the two companies in September2017. As part of the deal, the two sideshadagreedtocombinethe flat steel businesses of the two companies in Europe and the steel mill services of the Thyssenkrupp group through a 50:50 JV — a move that would leadtoformationofanewplayer at the second position in the Europeansteelmarket,havinga combined turnover of €17 billion per annum and around 48,000workers. Commenting on the development, Natarajan Chandrasekaran, chairman, Tata QuickPicks Subsidised cooking gas price hiked by `2.71 per cylinder SUBSIDISED COOKING gas price was hiked by `2.71 per cylinder on Saturday as a result of tax impact of base price rising due to spurt in international rates and fall in rupee, reports PTI. Subsidised LPG with effect from Saturday midnight will cost `493.55 in Delhi, a statement issued by Indian Oil Corp said. ODD & EVEN ROHNIT PHORE STEEL DEAL ■ Joint venture to have around 48,000 workers, about €17 billion ($19.9 billion) in sales ■ Deal comes as European steel makers face tariffs of 25% on exports to the US, their biggest market. That might force local markets to absorb more of steel production ■ Tata Steel to transfer €2.5 billion debt to JV; this makes for 35-40% of debt in European biz ■ Post-IPO, economic ratio to be 55:45 in favour of Thyssenkrupp ■ Completion of deal, in the making for over two years, expected by December DBS Bank branding through web series SHINMIN BALI Mumbai, June 30 AT A TIME when web series are the flavouron most hand-held devices,how can brands be far behind? Like Singapore-based DBS Bank, which recently marked its golden jubileewith an announcement to grow from 12 branches to about 50 branches in India overthe next year. To achieve this milestone,some help comes in the form of its global digital campaign,Sparks. With Sachin Tendulkar on boardasendorser,Sparkslooks at taking forward the brand’s new positioning, Live More Bank Less. This statement is aimed at conveying that the future of banking will be so intuitive and seamless that it makes ‘banking’ as an activity invisible by embedding it into the customer’s daily life. The current web series of Sparks will see DBS helping Tendulkar in his mission of lighting up play areas for children. Post this, the series will cometoanend,awaitinganew versionofthedigitalmarketing strategyas the brand moves its communication forward. Sheran Mehra,head,group strategic marketing and communication, DBS Bank India, shares, “After Chilli Paneer (a digital storytelling format used by the bank a few years back), we moved to the digibank launch in 2016 for whichwe looked at above-theline (ATL) activities, with Sachin Tendulkar as brand ambassador.” Continued on Page 11 Cross-audit of GST and I-T to curb evasion: Adhia Finance secretary expresses concern over C-GST shortfall, says many states may not need compensation in two years The worry is for GoI rather than states. We don’t have guaranteed revenue. We have to fend for ourselves. If the revenue growth isn't on expected lines, we will be in trouble reached),thesecretaryhintedat cross-matchingoftheproposed GST audit forms with the income-tax returns. As FE reported earlier, the GST Network is working on the audit format for assessees reporting over `2 crore in annual revenue.The I-Treturns for corporates (ITR-6) and for presumptiveincomefrombusiness and profession (ITR-4) released earlier this year have already been amended to include information on GST. “There is a possibility to match the two (GSTaudit forms and IT returns),” he said,when asked how GST evasion was being tackled.On compliance,he said it had grown ‘phenomenally’ from the pre-GST era, but was far from ideal. “Ideally, we shouldget80%peoplecomplyingbyduedate,butthenumber is around 60-65%,” he said. — HASMUKH ADHIA, FINANCE SECRETARY Continued on Page 11 SUMIT JHA New Delhi, June 30 ❝ ❝ THE GOODS and Services Tax (GST) helped expand the tax base and spurred compliance, finance secretary Hasmukh Adhia has said, even as he expressed concern over a huge shortfall(`22,000croreinMay) in the Centre’s GST revenue. “The worry is for the Government of India (rather than states,whicharecompensated). We don’t have guaranteed revenue (unlike states, which are assuredof14%annualrevenue growthundertheConstitution). We have to fend forourselves.If the revenue growth isn’t on expectedlines,wewillbeintrouble,” he told FE in an interview. Stating that the aggregate (Centre-state) GST revenue should be `1 lakh crore per month at the minimum for FY19 (except for March, this threshold has never been PRESS TRUST OF INDIA New Delhi, June 30 Steel, said: “The joint venture will create a strong pan-European steel company that is structurally robust and competitive.” Heinrich Hiesinger, CEO of Thyssenkrupp, said: “We will create a highly competitive European steel player based on strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries.” Theproposednewcompany, tobenamedThyssenkruppTata Steel BV,will be positioned as a leading pan-European flat steel producer. This is the largest European steel deal since 2006 whenArcelorwas taken over by Mittal. The proposed joint venturewillalsoresultinsignificant de-leveraging exercise for Tata Steel as it will transfer €2.5 billion to the joint venture,which, as per analysts, represents nearly 35-40% of debt in its European business. Mumbai on Saturday summoned beleaguered liquor baron Vijay Mallya to appear before it on August 27 on the Enforcement Directorate’s plea seeking action against him under the fugitive economic offenders’ordinance in the over `9,000-crore bank fraud case. Special judge MS Azmi, dealing with the Prevention of MoneyLaunderingAct (PMLA) cases, issued the notice to Mallya aftertaking cognisance of the second ED chargesheet filed against him recently,and a subsequent application by it on June 22 seeking a fugitive economic offender’s tag. Continued on Page 11 SHUBHRA TANDON Mumbai, June 30 RIL to acquire US telecom solutions firm Radisys Continued on Page 11 RELIANCE INDUSTRIES HAS Else to be labelled fugitive PRESS TRUST OF INDIA Mumbai, June 30 A SPECIAL PMLA court in signed an agreement to acquire US-based open telecom solutions provider Radisys,asperastatement.The cash acquisition is aimed at cementing Jio’s position in futuristic areas such as 5G and Internet of Things (IoT). Sources familiar with the development said the deal involves avaluation of roughly $74 million, and that Radisys will be delisted post the acquisition. With headquarters in Hillsboro, Oregon, Radisys has nearly 600 employees. The Nasdaq-listed company also has an engineering team in Bengaluru, along with sales and support offices globally, a joint statement by the two companies said. “Radisys Corporation... a global leader of open telecom solutions...and Reliance Industries Limited, India’s largest private sector company, have entered into a definitive agreement under ❝ Deal will enhance value to customers across consumer and enterprise segments ❝ LEISURE FINANCIALEXPRESS ON SUNDAY A look into how popular culture is changing to bring women’s sexual desires to the forefront Page 7 — AKASH AMBANI, DIRECTOR, RELIANCE JIO which Reliance will acquire Radisys for $1.72 per share in cash,” the statement said. The deal is subject to statutoryand regulatory approvals and nod of Radisys’ shareholders. It is slated to close in the fourth quarter of 2018. RIL plans to fund the transaction through its internal accruals,the statement added. Continued on Page 11
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