Govt to allow individual defaulters to file for bankruptcy under IBC

Plans to notify provisions in 3 categories

by Arjit Singh Bhambra

The central government is planning to enable individual defaulters to file for bankruptcy under the existing provisions of the Insolvency and Bankruptcy Code (IBC), according to a report in Business Standard. NITI Aayog along with insolvency experts will frame the rules required for the same. While low level defaulters will be exempted from constituting a committee of creditors, the minimum requirement for an individual to file for bankruptcy is likely to be Rs.100,000. Matters pertaining to individual bankruptcy will be addressed by a debt recovery tribunal and defaulters will be allowed to plan a repayment schedule. The final provisions are likely to be notified by the end of December 2017, in three categories viz. corporate guarantors, proprietary business and individuals.

References
1. http://www.business-standard.com/article/economy-policy/govt-draws-up-rules-for-individual-bankruptcy-117091101338_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
4.3 +0.0
Consumer Sentiments Index
Base September-December 2015
95.1 +0.4
Consumer Expectations Index
Base September-December 2015
94.8 +0.3
Current Economic Conditions Index
Base September-December 2015
95.5 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 16 Dec 16 Mar 17 Jun 17
New projects 2.38 1.50 2.97 1.71
Completed projects 2.23 0.95 1.86 1.12
Stalled projects 0.65 1.01 0.35 2.66
Revived projects 0.91 0.18 0.62 0.29
Implementation stalled projects 0.38 0.82 0.33 0.67
Updated on: 22 Sep 2017 4:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.2 10.2
 Expenses 1.9 6.3 11.9 10.5
 Net profit 14.6 40.3 16.7 -18.4
 PAT margin (%) 6.9 6.1 6.1 5.4
 Count of Cos. 4,500 4,502 4,424 4,203
Non-financial Companies
 Income 0.6 5.9 11.7 10.8
 Expenses -0.2 7.2 15.5 11.0
 Net profit 26.6 24.5 -2.2 -23.7
 PAT margin (%) 6.9 6.2 6.3 5.3
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.0
 Current liabilities 11.6 8.5
 Borrowings 3.1 4.8
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,481 3,487 3,436 3,285
Numbers are net of P&E
Updated on: 22 Sep 2017 4:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 5.0 1.0
 Expenses 12.8 9.9 5.1 1.2
 Net profit 1.0 -2.2 1.1 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.4 8.8
 Net worth 9.6 9.6 8.8 7.7
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,932 23,621 23,131 19,375
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.3 9.3 4.3 -0.6
 Net profit -8.4 -2.4 -6.3 6.5
 PAT margin (%) 2.4 2.2 2.1 2.7
 Net fixed assets 12.9 11.6 13.1 13.9
 Net worth 7.9 8.2 7.3 7.0
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 20,312 18,893 18,620 15,945
Numbers are net of P&E
Updated on: 21 Sep 2017 10:15AM

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