OPINION, P2 EXPRESS ADDA ‘When we land in trouble, no one helps, we don’t want to take out morchas’ Page 6 Good Aadhaar, Bad Aadhaar IDEA EXCHANGE ‘Capital can break caste system... Market and money will defeat anticapital Marx and Manu’ Page 4 ANUSHKA SHARMA & VARUN DHAWAN ACROSS THE AISLE, P CHIDAMBARAM Vol XVII No 49 Milind Kamble Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM LEISURE THE CULTURE PLAYLIST NEW DELHI SUNDAY, SEPTEMBER 30, 2018 16 Pages, `10 (Patna `11, Raipur `10) SPOTLIGHT CALLOF BEAUTY FINANCIALEXPRESS ON SUNDAY Here’s a pick of events not to be missed in the coming months Page 7 READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE TURNAROUND PLAN IL&FS defaults again; LIC, SBI may hike stake ● Company defaults on payment of `243 cr; hires global firm Alvarez & Marsal ROUHAN SHARMA Mumbai, September 29 Indian consumers no longer need to look at foreign cosmetic brands, as a slew of Indian companies are changing the rules of the game with their unique and innovative offerings. From crowdsourced products, customised offerings to vegan cosmetics, there’s a mini revolution brewing in your vanity case. We profile some brands that are giving the Indian beauty space a much needed makeover... Pages 8-9 WORDSWORTH LONGARMS OFTHE LAW RESTRUCTURING ROUTE EVEN AS DEBT-LADEN IL&FS defaulted on more repayments onSaturday,theIL&FSboard,at the company’s annual general meeting (AGM), said it expects its largest shareholder, Life Insurance Corporation of India (LIC), as well as state-owned State Bank of India (SBI), to infusemorecapitalbysubscribingtoitsproposed`4,500-crore rights issue. While LIC has a 25.34% stake,OrixCorporationofJapan, its second-biggest shareholder, with a 23.5% holding, is yet to decide on raising its stake. HDFC, with a 9.02% share, is unwilling to increase its exposure.TheAbuDhabiInvestment Authority and Central Bank of India hold 12.56% and 7.67% each,respectively. In a notice to the Bombay StockExchange(BSE)onSaturday,IL&FS said it has defaulted ■ LIC and SBI are on board for the rights issue ■ Orix is yet to commit to the rights issue ■ IL&FS Plans to raise `4,500 cr via rights issue ■ Company plans to raise `16,000 crore from the sale of its operational road assets ■ Assets cannot be monetised as the firm is onpaymentsof`242.93crore, ofwhich `71.33 crore is a term loan, and the remaining were due as interest and principal repayments on non-convert- recourse to assets sale ■ Firm will meet creditors shortly to discuss possibility of a moratorium ■ Management assures shareholders of complete transparency of whole process with regular public updates every Monday ible debentures. In a video statement issued to reporters late Saturday evening, Hari Sankaran, IL&FS groupvice-chairmanandman- Continued on Page 11 Surgical strike anniversary Schoolchildren visit a naval warship in Mumbai on Saturday during an event to mark the second anniversary of surgical strikes carried out by the army across the Line of Control GANESH SHIRSEKAR E-tailers to register in every state for TCS PRESS TRUST OF INDIA New Delhi, September 29 E-COMMERCE OPERATORS WILL have to register them- selves in everystatewhere their suppliers are located for collection of tax collected at source India’s oil meal exports to surge on Chinese demand ● China to import 5 lakh tonne of rapeseed meal, may resume soy meal imports too India's oil meal exports to China* Quantity (in lakh tonne) 2008-09 2009-10 2010-11 2011-12 The Republic of Beliefs: A New Approach to Law and Economics explores the uncomfortable and complex relationship between law and economics Page 5 currently in default ■ IL&FS seeking legal agingdirector,saidthecompany has appointed global turnaround management and performance improvement services firm Alvarez and Marsal. He said, “They will develop a comprehensive, detailed plan forrestructuringofthegroupin order to demonstrate to creditorsandshareholderstheintrinsicvalue of the groupwas sufficient in repaying its liabilities.. We will also continue to pursue an application under Section 230 of the Companies Act to ensurewehavethemoratorium we require to satisfy creditors and shareholders.” FE reported on September 26 that IL&FS’ road development subsidiary IL&FS Transportation Networks (ITNL) has sought to prevent creditors of 13ofitsinfrastructureprojects from hauling them to the National Company Law Tribunal (NCLT). PRABHUDATTA MISHRA New Delhi, September 29 3.76 3.28 5.16 3.52 Value (` crore) 492 789 630 435 China banned imports of these products from India in Jan 2012 Source: SEA, Mumbai AFTERAGAP ofsixyears,China isallsettoresumeimportofoil meal from India, a move that could double India’s exports of rapeseed meal, popular cattle and poultry feed. As the trade warwith the US has forced it to cut imports from the world’s largest economy, China has lifted a ban imposed in 2012 on imports of oil meal from India and approved six plants belonging to five companies, including Adani Wilmar and Gujarat Ambuja Exports, for import of rapeseed meal. India’s rapeseed meal exports stood at 6.6 lakh tonne in 2017-18; in the first half of this fiscal year, these exports were close to 5 lakh tonne. According to trade sources, Chinese demand could lead to additional exports to the tune of 4-5 lakh tonne in the second half of the year, taking total exports of the animal feed in 2018-19 to around 1.5 million tonne. “We will start export of non-basmati rice, rapeseed meal,soy meal and soybean as China is opening up its market for India,” said Sanjeev Kumar Chadha, Nafed managing director,wholedanIndiandelegation to China recently. He said Nafed has signed an inprinciple agreement with a Chinese trade agency for the export of oil meal and as and when the procedures are completed, shipments will go. He added a Chinese official delegation may come next month to inspect soybean processing plants so that theycan resume the process of approval. Nafed has a rapeseed inventory of 8 lakh tonne. Increased exports due to the Chinese demand will benefit largely traders; since rupee is weak,the realisation would be higher too. Sustained Chinese demand could, however, help farmers too as rapeseed prices could go up in the next procurement season starting April 2019. Rapeseed meal accounts for a fifth of India’s oil meal exports. Major importers of rapeseed meal from India include South Korea,Thailand and Vietnam. Brighter export prospects come at a time when the government has launched a targeted programme to increase India’s oilseeds output by 46% to 45.65 million tonne by 2022,which will help mills to produce more oil meal with the greater availability of raw material. Continued on Page 11 (TCS) and foreign companies can appoint an ‘agent’ on their behalf for securing such registration, the Central Board of Indirect Taxes and Customs (CBIC) has said. E-commerce companieswill,fromOctober1, have to deduct 1% TCS before making payments to their suppliers. The CBIC has come out withalistof29FAQsanswering industryqueriesonthemodalities to be followed by e-commerce operators to deductTCS. Continued on Page 11 QuickPicks US: Exploring alternative oil supplies to ensure India not hit WITH A tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected", reports PTI. Earlier this year, the US had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran. PAGE 11 India for fundamental reforms at UN,slams Pak for terror CALLING OUT Pakistan's "lie" that India is sabotaging the dialogue process, external affairs minister Sushma Swaraj Saturday asked world leaders how can talks can be pursued in the midst of "terrorist bloodshed" with a nation that "glorifies killers", reports PTI. "The biggest challenge of our era comes from climate change and terrorism,” she said,warning that the UN risks falling into irrelevance in absence of fundamental reforms. PAGE 11 Dealing a profitable hand in India Online card games estimated to grow 50-100% y-o-y in terms of revenue; online gaming industry to touch `11,880 cr by 2023 in the country launches is the entry of Pokerstars, considered to be one of the world’s largest poker platforms.Headquartered in Isle of (in ` cr) Source: KPMG Projections of online gaming market in India FY23P FY22P FY21P 4,380 Man, Pokerstars reported $877.3 million in terms of revenue in the previous fiscal.The entry of international players 11,880 8,470 10,330 7,090 5,540 FY20P casino culture like LasVegas or Macau, but in recent times, online gaming, particularly card games, has seen traction in the country. The online gaming industry in India is estimated to be `4,380 crore (FY18), projected to grow at a CAGR of 22.1% to touch `11,880 crore by FY2023, as per KPMG. Within this, online card games are growing at 50100% year-on-year. Among popular card games are Teen Patti and Rummy; however,when it comes to real money, Poker garners the cash Poker being perceived as a ‘gamble’ is an impediment to raising awareness about online gaming, believes Mohit Agarwal, co-founder Adda52 — a popularpokerplatformthatgot acquired in 2017.“BigTVchannels or other major platforms still resist putting Pokerads,” he says.“Butthingshaveimproved. If earlier we had 10 channels ready to put a Poker ad, now there are 50.”According to him, about 1 lakh players actively play real money Poker in India, primarilySECAusers in the 2540yearage group. The online Poker space in India, estimated to be around `700 crore currently,is getting competitive and among new FY19P INDIAMAYNOT have a 24-hour flow. The Supreme Court had ruled Rummy and Teen Patti as a game of skill, but opinion on Poker is mixed throughout the country.“Playingpokeronlineis illegalinAssamandOdisha.Furthermore,youcannotwithdraw or deposit winning money in a bankaccountlocatedinGujarat orTelangana,”saysJaySayta,corporate lawyer and founder of Glaws, an independent firm monitoring the online gaming spaceinIndia.“Outsideofthese two states,ifyourwithdrawal is above `10,000, a 30% TDS is charged and it is legal money. But if you are playing on international platforms,you violate FEMAguidelines andyou could be penalised.” FY18 ANIRBAN ROY CHOUDHURY Mumbai, September 29 isn’t bothering local platforms yet. Amin Rozani, CEO and founder, Spartan Poker, says, “Wehaveourownexpertiseand knowthelocalmarketverywell. The more the platforms that enterthemarket,thebetteritis forthe sport.” Apart from Pokerstart-ups, some corporations also have a stake in the game.FMCG giant Dabur’s vice-chairman Amit Burman invested close to `20 crore to develop the first ever Pokerleague in India.“I believe Poker is a sport, not gambling. This is the reason forforming a team and developing a tournament where franchises play against each other. That is how Poker Sports League (PSL) started two years back,” many professional players who says Burman. play Poker full time.In India,as As many as 11 franchises wehostmoretournamentsand tookpartinthesecondseasonof parents realise that there is a PSL which ended in June. Prize career in Poker, the game will money worth grow,” Burman The SC had ruled `4.4 crore was concludes. Rummy and Teen distributed In India, among the wingambling laws Patti as a game of ners. “We had are determined skill, but opinion on Viswanathan by the respective Poker is mixed Anand as our states. High throughout India brand ambascourts in West sador, who went Bengal, Nagaon camera and land and Karsaid Poker is a game of skill and nataka judged pokeras a game not chance.Next season we will of skill,allowing it to be played up the prize money to `7.25 in those states. At the same crore,” Burman adds. He is time,in Gujarat andTelangana upbeat about the future of the the courts judged it as a game sport in India,“Globally we see of chance.
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