COMPANIES, P4 AFTER TAKEOVER BY IHH Technology doesn’t solve humanity’s problems: Google CEO KOLKATA, FRIDAY, NOVEMBER 9, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XXVIII NO. 7, 12 PAGES, `6.00 (NORTH EAST STATES & ANDAMAN `10.00) 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 Moody’s puts Bharti on review for downgrade MOODY'S INVESTORS Service on Thursday said it has placed on review for downgrade the Baa3 issuer and senior unsecured rating of Bharti Airtel and the ratings on the backed senior unsecured notes issued by Bharti's wholly owned subsidiary, Bharti Airtel International (Netherlands), reports fe Bureau in New Delhi. FE BUREAU New Delhi, November 8 AS THURSDAY MARKED the second anniversary of demonetisation, the government put up a staunch defence of the exercise,highlightinghowitput a leash on unbridled cash in circulation,improvedthetaxpayer base and spurred formalisation oftheeconomy.TheOpposition, however,termed the note ban a gargantuan policy misadventure that dented economic growth, rendered millions jobless,hit MSMEs badly and contributedtothecurrentliquidity crisis among non-banking financial companies (NBFCs) and infrastructure lenders. A finance ministry functionary tweeted that without demonetisation, currency in circulationinJune2018 would havebeenhigherby`3.47lakh Netflix steps up original Asian content NETFLIX UNVEILED a plan on Thursday to make 17 more original productions in Asia including Thai and Chinese language shows, as the US firm seeks to attract new international users through more local content, reports Reuters. The plan also includes nine productions in India and five anime series. Number of income tax returns* (Crore) April-August Individual e-return filers (crore) 1.6 1.8 2.5 3.1 ‘Croma stores see 50% repeat customers on average’ Croma’s Avijit Mitra talks about the company’s expansion plan, buying patterns of customers, the intense competition from offline and online retailers, and more ■ BrandWagon, P9 Why volatility is your friend in goal-based investing Planning for goal-based investing should be the approach for retail investors with volatility an opportunity to allocate more into the 'volatile' asset class, in tranches ■ Personal Finance, P9 QuickPicks City gas licensing: PNGRB begins 10th round, 50 areas on offer CLOSE ON the heels of awarding 86 geographical areas (GAs) under the ninth round of city gas distribution (CGD) licensing, the Petroleum and Natural Gas Regulatory Board on Thursday launched the 10th round, offering 50 GAs, reports fe Bureau in New Delhi. The GAs offered cover cities in 12 states, including Andhra Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, MP, UP, Punjab, Rajasthan, Uttarakhand and West Bengal. PAGE 3 India to start exporting sugar to China from early 2019 AFTER A decade, India will resume next year exporting raw sugar to China as it eyes overseas markets to shed surplus stocks that have muted prices and created financial distress in mills, reports PTI. India plans to export two million tonnes of sugar to China to cut trade deficit with the neighbouring country, a government statement said. India's export to China in 2017-18 amounted to $33 billion, while imports stood at $76.2 billion. PAGE 2 Some AI staff go on strike in Mumbai, 37 flights delayed AS MANY as 37 Air India flights, including some international ones, were affected on Thursday after a section of employees of its ground-handling subsidiary, AIATSL, went on a flash strike against non-payment of Diwali bonus and other issues, an official told PTI. The employees of the Air India Air Transport Services (AIATSL) struck work at the Mumbai airport from the intervening night ofWednesday and Thursday, the official said. FY15 FY16 FY17 FY18 FY19 3.8 ` Growth in personal income FY15 4 tax collections (%, y-o-y) FY16 4.6 Compared with expansion of tax base, revenue growth rather muted FY17 Demo year 5.6 FY16 8.5 FY18 6.9 FY17 29 FY19 7.6 (E) FY18 19 *all categories of taxpayers including H1FY19 15 individuals, companies, HUFs etc Oct 19 2017 Nov 7 2018 470 878 438 322 (microgram per cubic metre) PM2.5 NO2 PM10 SO2 PM10: Particulate Matter with 10 micrometre in diameter or less; PM2.5: Particulate Matter with 2.5 mm in diameter or less; NO2: Nitrogen dioxide; SO2: Sulphur dioxide Source: Central Pollution Control Board 5.4 FY14 Currency in circulation (` bn) 25,000 20,000 15,000 10,000 5,000 Without demonetisation (using 20-year avg growth) ` Beyond the drop in GDP growth, deeper ramifications of notebandi are still unravelling. MSMEs are yet to recover from the shock. — MANMOHAN SINGH FORMER PM DAYAFTER, DELHI IN A HAZE: A thick blanket of smog hangs over the India Gate area a day after Diwali, in New Delhi on Thursday. With demonetisation Gap: `3,472 bn 0 crore. The CIC stood at `19.6 lakh crore on October 26. Asserting that demonetisationwasn’tacurrencyconfiscation exercise (with 99.3% of totaljunkednotesworth`15.41 lakh crore back,the Opposition had mocked the government’s plan to reap a windfall of‘`3-4 lakh crore’due to extinguished currency notes),finance ministerArunJaitleysaidthenumber of tax returns filers will be dou- bled in the five years of the currentNDAregimefrom3.8crore inMay2014(seechart).Removing the `500 and `1,000 currency notes in November 2016 resultedin“moreformalisation (oftheeconomy),morerevenue, moreresourcesforthepoor,better infrastructure, and a better quality of life for our citizens”, Jaitleyinsisted. Continued on Page 2 CABINET DECISIONS Special Features Air pollutants at Delhi's ITO Oct 30 2016 Personal income tax If in the two years to FY16, the number of tax filers rose 21%, in the two years to FY19, the increase is seen at 36% Diwali days 77 74 Demonetisation boosted tax base, reduced cash in circulation, stoked formalisation, says FM; it failed miserably, says Opposition, warns against more ‘unorthodox’ moves Oct ‘06 Aug ’07 Jun ‘08 Apr ’09 Feb ‘10 Dec ’10 Oct ‘11 Aug ’12 Jun ‘13 Apr ’14 Feb ‘15 Dec ’15 Oct ‘16 Aug ’17 Jun ‘18 INDIA HAS overtaken the US to become the secondlargest smartphone market in the July-September 2018 quarter, according to a report by research firm Canalys, reports PTI. India, which saw a shipment of 40.4 million units during the third quarter, was second to China, where 100.6 million units were shipped, the data showed. After showing a decline in Diwali last year, particulate levels have again gone up this year in most areas in the national capital region 797 Government, Opposition in a verbal slugfest again NO LET-UP IN AIR POLLUTION 180 TWO YEARS OF NOTE BAN IN THE NEWS ‘India overtakes US in sales of smartphones’ 5 PMRPY that helps formalisation of jobs by sharing EPFO burden is a good idea 16 11 After the IBC, CIC order on naming defaulters is moot PICHAISPEAK Crisis-hit Fortis Healthcare’s CEO Bhavdeep Singh quits EDITORIAL BACK PAGE, P12 50 OPINION, P6 Up for sale: Dredging Corp,‘enemy shares’ FE BUREAU New Delhi, November 8 ANXIOUS TO BOOST disinvestment receipts,the Cabinet on Thursday decided to dip into a portion of ‘enemy shares’ in its possession and sell Dredging Corporation of India to a clutch of stateowned port trusts. The proposed sale of 6.5 crore enemy shares in 996 companies could fetch the government close to `3,000 crore at current valuation.The government holds 73.4% in the Visakhapatnam-based Dredging Corporation, whose market-cap at Wednesday’s close was `975 crore. So farthis fiscal,the government has raised around `15,289 crore via disinvestment, while the target is `80,000 crore.The latest Coal India offer for sale has mopped up just `5,266 crore against some `15,000crore targeted. The Enemy Property Act, 1968, provides for the continuous vesting of enemy property with government custodian. Currently, of the 996 companies whose enemy sharesareunderthecustodyof state-run CEPI, 588 are functional/activecompanies.While 139 of these firms are listed, ALL IN A DAY ■ Nod for leasing out AAI airports in Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru under PPP ABUSE OF DOMINANCE The dream was to gain `3-4 lakh crore. Thanks to the rampant money laundering at bank counters, that dream turned into a pipe dream — P CHIDAMBARAM FORMER FM ● BOEING 737 MAX DGCA asks Jet, SpiceJet to take action PRESS TRUST OF INDIA New Delhi, November 8 the remaining are not. According to a government statement, “the process for selling these shares is to be approved by the Alternative Mechanism (AM) under the chairmanship of finance minister and comprising minister of road transport and highway and home minister”. AVIATIONREGULATORDGCA hasaskedJetAirwaysandSpiceJet to take corrective action to address possible issues with their Boeing 737 MAX planes that could lead to “significant altitude loss” of the aircraft, a seniorofficialsaidonThursday. The latest directive follows advisories issued by US watchdog Federal Aviation Administration (FAA) and Boeing after the crash of a Boeing 737 MAX plane operated by Indonesia's LionAirlast month. Currently, Jet Airways and SpiceJet fly Boeing 737 MAX planes in India.Together,there are at least six such aircraft with the two carriers. “Both the documents address erroneous high ‘angle of attack’(AOA) sensor input and correctiveactionforthesameas it has potential for repeated nose-down trim commands of horizontal stabiliser,” a senior DirectorateGeneralofCivilAviation (DGCA) official said. Theofficialsaidifthecondition is not addressed, it could causetheflightcrewtohavedifficultyin controlling the plane. Continued on Page 2 Continued on Page 2 ■ Indian Telephone Industries gets 3-year extension of 30% purchase guarantee from state-run BSNL, MTNL and BBNL ■ Foreign national oil companies to fill 2.5-MT Padur strategic petroleum reserves in Karnataka CCI gives clean chit to Flipkart,Amazon FE BUREAU New Delhi, November 8 NEITHER FLIPKART, NOR Amazonwereviolating Section 4 of the CCI Act, 2002, which disallows abuse of dominant position,theCompetitionCommissionofIndia(CCI)hasruled. The Commission noted that that going by the current structure of online market platforms as of now, no one player seems to be commanding a dominant share in the space. There was nothing to showthatFlipkartholdsa40% market share as alleged by the All India OnlineVendorsAssociation even though it may be trueFlipkarthasaccesstolarge resources,the CCI said. The association has said that Flipkart India Private, a wholesaler sells goods to WS Retail Services (owned by the founders of Flipkart Internet till 2012) — at a discounted price and thereafter, these The order comes on a complaint filed by the All India Online Vendors Association CCI says no one player seems to be commanding a dominant share in the space The association CCI finds no comprises 2,000 case of contrasellers selling on vention of Section e-commerce 4 by Flipkart marketplaces or Amazon goods are sold on the Flipkart marketplace. Such practices amount to preferential treatment to certain sellers, the association claims.It saysthere is a conflict of interest between Flipkart Moody's outlook FE BUREAU Economy faces credit squeeze Indian economy is at the risk of a credit squeeze from NBFCs, following the IL&FS crisis. GDP growth will ease a tad to 7.3% in 2019 from 7.4% this year Real GDP (% growth, y-o-y) 6.6 2.9 2018 6 2.9 2.3 2.1 2 2 2.52.8 Robyn Denholm US EU China India G20 Source: Moody's HOLD SOME, FOLD SOME ■ Looks like a standard smartphone when closed ■ Opens like a book to reveal another 7.3-inch display; to be one of the largest phone screens ever released ■ Will be big enough to run three apps side by side ■ Company claims that display can be folded hundreds of thousands of times ■ Screens that roll and stretch also being explored Developers will be able to create apps for the gadget, which like other Samsung phones, will be based on the Android operating system. The South Korean technol- Tesla director Denholm to replace Musk 4.8 4.9 US EU* China India *Target ogy giant didn’t say when the device will go on sale, how much it will cost, or what the REUTERS Bengaluru, November 8 phone will be called. During the presentation, Samsung also disguised the rest of the phone’s design by covering everything beyond the screen with extra casing — similar to howprototypecarsarecamouflaged during street testing. The basics, however, are clear. The device looks like a standard smartphone when closed. It opens like a book to reveal another7.3-inchdisplay, which would be one of the largest phonescreens ever. TESLA HAS ANNOUNCED that Robyn Denholm will replace Elon Musk as the chair of the electric-carmaker’s board, more than a month after the billionaire had to step down from the role as part of a settlement with US regulators. The appointment of Denholm, one of the two women on the carmaker’s nine-member board, caps months of turbulence for the company and its stock as investors called for stronger oversight of Musk, whose erratic public behaviourraised concerns about his ability to steer the company through a rocky phase of growth. Continued on Page 2 Continued on Page 2 Samsung previews phone with screen that folds like a book SAMSUNG ELECTRONICS SHOWED off a new phone with a foldable screen in a bid to shake up a smartphone business awash with black, shiny rectangles that look increasingly similar. At its conference on Wednesdayforsoftware developers in San Francisco, the company previewed what it called an Infinity Flex Display, and announced new software forcontrollingthelargephone. ● NEW BOARD CHAIR Inflation (% rise, y-o-y) 2019 TECH TALK BLOOMBERG San Francisco, November 8 Continued on Page 2 7.4 7.3 3.3 2.3 2 1.8 India and Flipkart Internet which sell their own brands Smartbuy and Billion and other manufacturers selling on their platforms.
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