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India’s budget: Mood mixed at Moody’s

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Chennai: Global credit rating agency Moody’s Investors Service on Monday said India’s budget for 2015-16 is credit positive for corporates and a mixed bag for the banks.

The increase in service tax, however, is credit negative as it would increase the production cost for Indian corporates, the agency said.

“Measures designed to reduce and rationalise taxes, boost economic growth and increase the ease of doing business will support the credit profiles of Indian non-financial corporates, but a reduction in the fuel subsidy allocation is credit negative for upstream oil and gas companies,” Vikas Halan, a Moody’s vice president and senior credit officer was quoted in a statement.

For non-financial corporates generally, Moody’s notes that the budget proposes to reduce the corporate tax rate to 25 percent from 30 percent over the next four years, and also seeks to rationalise the tax structure, in part, by increasing the excise duty rate and introducing a unified Goods and Services Tax from April 1, 2016.

On the other hand, the proposed increase in the service tax – the indirect tax paid on the value of services consumed – is credit negative because it will raise the cost of production for Indian corporates.

Another credit negative factor, and specifically for upstream oil and gas companies, is the decision to lower the fuel subsidy allocation for fiscal 2016 as it indicates that the subsidy burden of these corporates will remain high in fiscal 2015 and that they will have to bear any shortfall in the subsidy amount in fiscal 2016.

For the infrastructure sector – including power, highways and railways – recommendations in the budget would both raise public sector investment and encourage private sector investment.

“A significant increase in planned public sector capital expenditure, coupled with measures to increase investment and financing in the private sector, will be credit positive for infrastructure companies,” said Abhishek Tyagi, a Moody’s vice president and senior analyst.

The budget also proposes the setting up of a national investment and infrastructure fund, which would raise debt and invest in infrastructure finance projects, helping enhance – along with other measures – the ability of infrastructure firms to access funding, Moody’s said.

“By comparison, public sector banks can expect limited near-term relief, with the government allocating a significantly lower amount of capital than in recent years, while proposals to set up a bank board bureau and adopt a new bankruptcy law have the potential to improve governance over time, if implemented effectively,” said Srikanth Vadlamani, a Moody’s vice president and senior credit officer.

According to Moody’s, the budget’s implications for the banks are mixed, noting – for example – that their capital allocation for fiscal 2016 is lower than fiscal 2015.

However, the government proposes to improve governance and set up an autonomous bank board bureau, which would help public sector banks in areas such as management quality and strategy.

The proposed introduction of a new bankruptcy law would also be credit positive. The current weak bankruptcy framework has been a major impediment for banks in enforcing credit rights. Few details on the new law are currently available.

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Apple is giving a huge discount on its gadgets: Details inside

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If you want to buy an iPhone and were waiting for a nice offer, then we have a piece of good news for you! Amazon Summer Sale May 2022 has begun and they are offering major discounts on various smartphones, laptops, and smart TVs, among others.

The sale is live now on the e-commerce platform with no-cost EMI options and exchange discounts on various products. In addition to this, Amazon has also partnered with several banks including ICICI, Kotak Bank, and RBL so that customers get instant discounts of up to 10% using their cards and EMI transactions.

Customers can easily enjoy this summer sale and get massive discounts on iPhones. They can also compare prices on Flipkart Big Saving Days Sale 2022 before making a purchase.

 

Amazon Summer Sale May 2022: Discount offer on iPhone 13 

Apple’s coveted phone model iPhone 13 in the 128 GB storage model will be available during the Amazon Summer Sale May 2022 for Rs 64,900. The MRP of the phone is Rs 79,900. This means that the customers will be able to enjoy a discount of up to Rs 15,000 on the purchase of the iPhone 13.

If you have an old iPhone in working condition then you will also be eligible to receive another additional discount worth up to Rs 17,000 on the iPhone 13.

Buy at Rs. 64,900 (MRP – Rs. 79,900)

Features of Apple iPhone 13 

The iPhone is powered by an A15 Bionic processor with 6 core CPU. Apart from this, it has 16 core neural engines. With the iPhone 13, up to 512 GB of storage will be available. The iPhone 13 has a 6.1-inch Retina XDR display with 1000 nits brightness.

The iPhone 13 has a 12-megapixel dual rear camera setup. This time a new wide-angle camera has been given, whose aperture is f/1.6. With this, there is support for sensor optical stabilisation. Night mode has been made better than before. The second lens is also 12 megapixels ultra-wide and has an aperture of f/2.4.

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