Before the current government, Indian businesses and corporate houses had the unwritten assurance that if they failed or defaulted on their loans, the government of India would step in and provide relief or support. Companies borrowing excessively or gave loan guarantees to enable other companies to borrow. With Indian parliament passing the Bankruptcy law, companies get no special favours either written or unwritten. If a company defaults on a loan or a loan it provided a guarantee, then it could end up in bankruptcy proceedings with creditors making claims against the remaining value or assets of the company. In fact legal collection proceedings have been started against more than 400 companies with the list expected to balloon. Based on recent experiences of Ruia losing control Essar Oil and Essar Steel and Vijay Mallaya losing his ownership, promoters could lose big. While there is going to be lot of pain, the longer-term benefits are likely to be end of reckless borrowing, more equity by promoters and tax payers – which is all of us sharing and future losses and not taking 100% of the losses.
- 9 Nov 2017
China sells to India Rs. 400,000 crores of goods each year while India sells only a fifth of that or Rs. 80,000 crores to China. China supports Pakistan, a country that supports terrorist activities openly, has blocked our NSG membership, there are diplomatic disputes in the United Nations and other places, regularly infiltrates in India to test or attempt to push its borders and so many things. Now the Gujarat Chamber of Commerce and Industry (GCCI), has appealed to people to boycott Chinese products, and several individuals are doing it by choice. Should all Indians and businesses pool together and start to boycott Chinese goods to reduce imports and to teach China a lesson. This could hit them even harder as China is in the midst of a business downturn?
Source: Daily Pioneer
- 23 Oct 2016