Page 15 - Banking Finance December 2021

ROUNDUP

rency in circulation has been a global trade between the two countries has Of course, base effect, too, remained
phenomenon, described as a 'dash to entered a new phase, the report cited unfavourable.
cash' under extreme uncertainty. This Nepal's ministry of energy, water re- However, policy-makers may seek
has been experienced by the US, sources and irrigation as saying. comfort in the fact that trade recov-
Spain, Italy, Germany, France, Brazil, ery has taken roots, with merchandise
Russia and Turkey. Exports rise over 42% to exports having exceeded the pre-pan-

Meanwhile, digital payments are $35.5 billion in Oct demic level for eight months in a row.
nearly three times what they were in
Merchandise exports hit a record Govt may ban non-audit
FY18. The Reserve Bank of India's digi-
$35.5 billion in October, registering a
tal payments index, which has 2018 as services to audit clients
42.3 per cent rise from a year before
the base year at 100, has risen to 270.
and 35.2 per cent from the pre-Covid Firms auditing the accounts of public-
This index also captures the spread of interest entities such as listed or large
(same month in FY20) level. The ex-
digital, taking into account growth in unlisted companies could be debarred
ports were supported by strong order
the payments infrastructure. from providing non-audit services to
flow from key markets such as the US
and China in the wake of an economic them. Government sources said they
Nepal to sell surplus elec- resurgence there and elevated global were considering this move, which
would improve corporate governance
tricity in India's energy ex- commodity prices.
and address conflicts of interest that
change market But at $55.4 billion, imports surged at arose when the same firm provided
a faster pace of 62.5 per cent in Octo- audit and non-audit services to a com-
For the first time, Nepal will sell its
ber from a year before and 45.8 per pany.
surplus electricity to India at a
cent from the pre-pandemic level. This
competitive rate after New Delhi al- This will, however, require a change in
kept trade deficit at an elevated level
lowed the neighbouring country to the Companies Act. The corporate af-
of $19.9 billion in October, although it
trade its power in the Indian power fairs ministry could push for this
was lower than the record $22.6 bil-
exchange market, according to media change in the next round of amend-
lion witnessed in September, according
reports. ments to company law, according to a
to the preliminary estimates released senior official.
The Energy Exchange under India's by the commerce ministry.
power ministry on Monday granted "While providing audit services, the
Of course, domestic demand has been same firm should not also be involved
permission to Nepal after persistent
improving in recent months after in management consultancy or
lobbying from Kathmandu, as Nepal
Covid-induced compression last fiscal. fundraising activities," the official
Electricity Authority (NEA) is now in a
But import bill was greatly inflated by added.
position to sell its surplus energy, ac-
elevated global crude oil prices, which
cording to a report. The Companies Act gives a list of non-
are hovering around 3-year highs, and audit services, which include account-
In the first phase, 39MW power-24MW massive purchases of gold in the build- ing, book-keeping, internal audit, and
produced by NEA-owned Trishuli hydro- up to the festival season. actuarial and management services.
power and 15MW Devighat power-
Imports of petroleum products jumped "These services are vague. One inter-
house-has been permitted for trading
over 141 per cent year-on-year to prets them suiting one's own purpose.
in Indian Energy Exchange (IEX). Both
$14.4 billion, while gold purchases For instance, what are management
projects were developed with India's
from overseas climbed 104 per cent to services? They are not defined and au-
assistance.
$5.1 billion ahead of Dhanteras. Coal dit firms can use the term to mean
Following the Indian approval for imports surged 119 per cent and ed- what works out best for them," a se-
Nepal to export its electricity, power ible oil imports shot up by 60 per cent. nior company lawyer said. T

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