Page 15 - Banking Finance August 2017

ROUNDUP

Deregistered companies to face charges for violating Dairy development pus-

taxation and money laundering hes Govt to borrow from
Nearly 1 lakh companies have been de-registered, including action against those JICA
for violating taxation and money-laundering laws as
The Central Government has sought
well as choking their access to banking. While the MCA
Rs 16,027 crore
has acted against them for not filing returns, it is now
loan from Japan
going to approach banks with the list of companies International
where action has been taken to ensure that they are Cooperation
unable to operate their bank accounts or access loans. Agency (JICA)
"In the past, we noticed that some of the de-registered companies continued to organize vari-
to enjoy access to banking services due to lack of information flow. We want to ous progra-
prevent that, otherwise the whole purpose will be defeated," said a source. mmes to develop dairy sector and
meet rising domestic demand for milk
Independent Directors to be replaced within 90 days and milk products. "The government
The Corporate Affairs Ministry has altered the code for independent directors has submitted a proposal for availing
loan from Japan International Coop-
under Schedule IV of The Companies Act, 2013 to
replace independent directors who resign or are eration Agency for 'Dairying through
removed from the Board within 90 days, against Cooperatives-National Dairy Infra-
the earlier 180 days. structure Plan'," the agriculture min-
istry said in a statement. The proposal
Moreover, the independent directors at their is in line with doubling farmer's income
separate meetings need not henceforth review the in the next five years.
performance of non-independent directors, of the
Board as a whole, or of the Chairman of the Board. SN Ananthasubramanian, Export share to reach
Practising Company Secretary and former Company Secretaries' Institute Presi- 51.6%
dent commented that this development has brought the Companies Act on par India's main export destinations in-
with the SEBI's listing regulations. "This shorter time period of 90 days will en-
clude the US, Ja-
hance the cause of good governance in unlisted companies also," he said. pan, Hong Kong,
UAE, China,
Cattle Trade Rules flawed: Experts Singapore, UK
The Centre has no authority to make legislation or even subordinate legislation and Germany.
on the prohibition of cow slaughter as it is included Share of India's
as Directive Principle of State Policy. That is for total exports to top 10 destinations
the states to do, said former Lok Sabha Secretary worldwide has increased to 51.6 % in
General and constitutional expert PDT Achary. 2016-17. The country's merchandise
exports to the US grew from USD
The contribution of animal husbandry in the
39.14 billion in 2013-14 to USD 42.33
growth of India agriculture has been significant
billion in 2016-17, PHDCCI President
in the recent years. This kind of restriction will only
discourage farmers from rearing cattle, said Vikas Rawal, Professor of Econom- Gopal Jiwarajka said in a statement.
ics at the Jawaharlal Nehru University. Continuous export rise

NK Shukla, national joint secretary of All India Kisan Sabha, said there are at The country experienced 10 straight
least three rules in the notification that are particularly anti-farmer. Both seller months of rise in out bound trade in
and buyer of the cattle have been forced to give an undertaking that it was not June with 4.39%. The figure was
sold or bought for slaughter. More regressive is the section that bars a farmer, $23.56 billion in June. Growth has
who bought cattle, from selling it in the next six months. "What authority does been falling since March, when it hit
the government have to decide when should a farmer sell his cattle," asked a high of 27 %, the steepest in a little
Shukla. over five years.

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