Govt may approve higher duty drawback rates for exporters

Aims to offset embedded taxes

by Arjit Singh Bhambra

The government is in the process of finalising higher duty drawback rates for exporters to compensate for embedded taxes, as per a report in Hindu BusinessLine. According to a government official, recommendations of GK Pillai committee which take into account embedded taxes on inputs on which credit is not available will soon be finalised. The official added that higher duty drawback rates together with timely refunds will help exporters retain their competitiveness. The higher duty drawback rates are likely to be announced before June 2018, when the higher rates of recently announced export incentives for labour-intensive sectors will lapse.

References
1. http://www.thehindubusinessline.com/economy/policy/relief-for-exporters-higher-duty-drawback-rates-to-offset-taxes/article9984801.ece
CMIE STATISTICS
Unemployment Rate
Per cent
5.9 -0.1
Consumer Sentiments Index
Base September-December 2015
96.0 +0.2
Consumer Expectations Index
Base September-December 2015
96.5 +0.3
Current Economic Conditions Index
Base September-December 2015
95.0 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.50 1.23 1.34 2.78
Completed projects 0.87 1.24 1.11 1.35
Stalled projects 2.68 0.69 0.88 3.41
Revived projects 0.23 0.34 0.22 0.24
Implementation stalled projects 0.76 0.78 0.71 1.05
Updated on: 19 Jun 2018 8:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 10.7
 Expenses 9.9 9.0 13.0 17.3
 Net profit -19.8 -18.0 -14.3 -78.4
 PAT margin (%) 5.3 5.5 4.8 1.4
 Count of Cos. 4,512 4,498 4,486 4,225
Non-financial Companies
 Income 10.2 8.2 13.3 12.4
 Expenses 10.5 8.1 12.3 13.0
 Net profit -25.1 -6.0 13.1 1.4
 PAT margin (%) 5.2 6.2 6.4 6.8
 Net fixed assets 9.2 11.9
 Current assets 78.6 8.4
 Current liabilities 11.0 10.7
 Borrowings 10.4 1.4
 Reserves & surplus 5.2 8.1
 Count of Cos. 3,480 3,467 3,469 3,275
Numbers are net of P&E
Updated on: 19 Jun 2018 8:21PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.6 5.5
 Expenses 5.7 1.9 5.6 6.2
 Net profit 0.0 -10.0 26.3 0.9
 PAT margin (%) 3.0 2.8 3.5 12.0
 Assets 9.5 10.1 7.2 18.5
 Net worth 8.5 11.3 6.8 5.4
 RONW (%) 5.8 4.9 5.9 13.6
 Count of Cos. 25,852 24,013 21,375 64
Non-financial Companies
 Income 4.8 1.0 5.4 4.0
 Expenses 5.0 0.3 5.7 1.6
 Net profit -8.2 19.2 21.2 18.3
 PAT margin (%) 2.0 2.4 3.0 16.5
 Net fixed assets 13.3 17.2 6.2 5.2
 Net worth 6.9 12.0 5.5 -2.4
 RONW (%) 4.6 5.1 6.1 21.6
 Debt / Equity (times) 1.1 1.1 1.0 0.1
 Interest cover (times) 1.9 1.9 2.1 34.4
 Net working capital cycle (days) 66 65 62 43
 Count of Cos. 21,088 20,114 17,854 48
Numbers are net of P&E
Updated on: 04 Jun 2018 11:54AM