Amidst the rising concerns at the macro level, the business growth at the industry level remained strong in Q3FY2009. The year-till-date credit growth (till December 19, 2008) stands at 24.4%, better than the ~22.0% credit growth recorded in the same period last year. The healthy credit demand is primarily due to the fact that alternative funding sources (external commercial borrowings, foreign currency convertible bonds) have dried up with rising risk aversion. Though the role of domestic banks has increased, the …

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The top line of the front-line information technology companies is expected to grow in the range 6.1-11.7% in Q3FY2009. The growth in the top line is expected to be primarily driven by the depreciation in the rupee against the US Dollar. The rupee’s depreciation is likely to contribute 10-12% of the top line growth for the front-line IT companies. In dollar terms, the front-line IT companies may miss the revenue guidance on account of a sharp cross-currency movement and muted …

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Quest India invites you to participate in program “International Tax & Transfer Pricing” scheduled on January 22, 2009 at Hotel Intercontinental The Grand, Mumbai

Preamble

International Taxation and Transfer Pricing are high on the agenda of the industry. The field of International Taxation has gained tremendous importance in today???s globalised environment. Issues range from Withholding Tax cross-border Transactions/ Permanent Establishment / structuring to transfer pricing. Pursuing new opportunities also means confronting a wide array of new tax planning and compliance challenges.

In line …

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The Manmohan Singh government is readying a New Year booster for the Indian economy in the form of an economic stimulus part-II and is signalling that while major industry concerns are being addressed, the forthcoming financial fillip will not be followed by another for a while. The Indian industries have, on number of instances, urged the government to deliver a “message of hope’’ in this time of doom and gloom, which have been enforced by news of falling revenues, operational losses …

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There are funds which, while having the potential to give higher returns in the long term, also carry the baggage of high volatility. These particular schemes tend to remain in losses in the short- and even medium-term – that’s longer than some of the other funds – because of aggressive investment strategies. As a result, such schemes are good only if you have the ability to see off the negative returns in your portfolio for a fairly long time. In …

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United States of America

The Consumer Price Index (CPI) for November declined by 1.7% mom, the decline was higher compared with the drop of 1.0% in the previous month. The steep m-o-m decline in the consumer prices indicates the possibility of deflationary situation in the USA.
The initial jobless claims for the week ended December 2007 increased to 573,000 compared with 515,000 in the previous week. The factory orders for October declined by 5.1% yoy as compared with a decline of 3.1% …

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… Continued from PART 1 & PART 2 of the series …

@ Banking

The credit growth as on November 28 has jumped up to 29.8% yoy, the highest in the past one year. The credit demand has grown mainly on account of the drying up of the alternative sources of funds due to which corporates are turning to banks for meeting their working capital requirements. The deployment rate (i.e. the credit-deposit ratio) declined to 73.2% while the incremental credit-deposit ratio …

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