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- Bit by Bit 16th Sept. || New Investment Norms || Battery that lasts 20 years & More
Bit by Bit 16th Sept. || New Investment Norms || Battery that lasts 20 years & More
BGS Committee
September 16, 2022
Good Morning! Roger Federer, the winner of 20 Grand Slams, has announced his retirement after next week’s Laver Cup, but there is no need to worry, as bit by Bit will never retire.
So, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
BSE SENSEX : ₹59,567.30 (-0.61%)
NIFTY 50 : ₹17,877.40 (-0.37%)
FII Net Cashflow : - ₹1,270.68 crores
DII Net Cashflow : - ₹928.86crores
(Market data as of 11:00 PM on 15th September 2022)
ECONOMY
Key Facts:
RBI in 2004, gifting of foreign securities by non-residents to an Indian resident individual was permitted freely.
The contradictory provisions that existed under two different statutes namely 2004 RBI regulations and FCRA, were administered by two different ministries of GOI being Ministry of Finance and the Ministry of Home Affairs respectively.
The Story:
The framework for foreign direct investment has recently been updated by the Indian government (GOI), in collaboration with the Reserve Bank of India (RBI),and is now governed by a new set of guidelines. The gifting of foreign assets by non-residents to an Indian resident individual is one of the many adjustments that have been made in respect to overseas investment. The Foreign Contribution Regulation Act (FCRA), a law that governs foreign contributions to NGOs and other establishments, requires registration or approval for receiving foreign contributions by a certain person and forbids certain categories of people from accepting foreign contributions.
According to the new overseas investment rules, gifts of any such foreign securities must abide by the FCRA's provisions. The preamble of the FCRA legislation makes it clear that its intent is to regulate only "certain" categories of people, businesses, organizations, and people, including, first and foremost, political figures or establishments, media outlets, and government workers, as well as people with a clear social, political, economic, or educational agenda.
FMCG
Key Facts:
5 billion rupees ($62.9 million) kept aside from its IPO for such purchases.
Internal accruals and 30 billion rupees of planned capital expenditure will provide the additional funding
Post making a debut at $486 million, Adani’s FMCG shares have tripled
The Story:
Asia’s richest man Gautam Adani is never behind when it comes to a competition between him and “mota bhai” Mukesh Ambani. The recent announcements made by Tatas and Ambanis have triggered an acquisition frenzy among their competitors. Adani Wilmar now, is stepping up its FMCG game by actively searching for companies to acquire, in both domestic and international markets.
Angshu Mallick, CEO and MD at Adani Wilmar said that they are looking to conclude few of acquisitions by March 2023. To fund this process, the company has already made provisions. UN’s Food and Agriculture Organization (FAO) stated that Adanis and Ambanis are trying to capture this emerging food market which is currently pegged at $400 billion. Adanis recently acquired Kohinoor cooking brand from McCormick Switzerland for an undisclosed amount.
AUTOMOTIVE
Key Facts:
The firm has acquired funding of $5.15 m to bring this to a general audience.
1% of cars are electric in the USA.
The Story:
A Harvard-backed battery Adden Energy a new type of battery has been developed which is able to charge in 3 minutes and has a lifespan of around 20 years. This is a major advancement in EV batteries as even the fastest batteries take around 30 minutes to get around 80% charge and typical Petrol runs the car to be filled in 5 minutes. This type of invention will also help improve scope of the used car EV market as usually, the batteries become obsolete after 3-5 years.
This kind of technology will be essential for the future and sales of electric vehicles, for example in the UK, where the government plans to outlaw the sale of new gasoline and diesel vehicles by 2030 this kind of technology will help in making this transition easy and realistic.
TECH
Key Facts:
Adobe Inc. agreed to buy software design startup Figma Inc. in a deal valued at about $20 billion to help it expand tools for creative professionals.
Adobe's share fell by about 7% in pre-market trading.
Figma Inc. was valued at $10 billion in its last funding round a year ago.
The Story :
The Adobe announcement, which is split 50/50 between cash and shares, confirms a previous Bloomberg report and would be the largest buyout of a private software company in history.
Demand for Figma, which enables users to collaborate on software while it is being developed, increased during the epidemic as more individuals worked from home. In recent years, the company has expanded its clientele beyond software designers at major corporations like Airbnb Inc., Google, Herman Miller Inc., and Kimberly-Clark Corp. including those who create lightweight presentations, games, and maps.
Since the beginning of the year, Adobe's shares have lost more than a third of their value, despite having been a Wall Street favorite for more than ten years. The dominance of Adobe's line of design professionals' products, which accounts for around 60% of its revenue, has raised investor skepticism.
Dylan Field and Evan Wallace co-founded the San Francisco-based company Figma roughly ten years ago. The startup introduced browser-based software design tools that let programmers collaborate in real-time rather than going through the occasionally cumbersome process of saving and sharing their work with colleagues via a variety of unrelated apps.
Want More Bits?
The DA/DR rate is expected to be increased from the current 34% to 38%. The announcement will be made after the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Reports have also claimed that the file regarding the DA/DR hike has reached the Union Cabinet office and only the final approval is awaited.
Dearness Allowance/DR Hike Calculation
Here’s a look at how the salary/pension will increase assuming DA/DR rates go up by 4% to 38%:
If the Basic Salary/Pension is Rs 25,000, the DA/DR at 38% rate will be Rs 9500. At 34% rate, DA/DR amount is Rs 8500. This means salary will increase by Rs 9500-Rs 8500 = Rs 1000.
If the Basic Salary/Pension is Rs 35,000, the DA/DR at 38% rate will be Rs 13,300. At 34% rate, DA/DR amount is Rs 11,900. This means salary will increase by Rs 13,300-Rs 11,000 = Rs 1400.
If the Basic Salary/Pension is Rs 45,000, the DA/DR at 38% rate will be Rs 17,100. At 34% rate, DA/DR amount is Rs 15,300. This means salary will increase by Rs 17,100-Rs 15,300 = Rs 1800.
If the Basic Salary/Pension is Rs 55,000, the DA/DR at 38% rate will be Rs 20,900. At 34% rate, DA/DR amount is Rs 18,700. This means salary will increase by Rs 20,900-Rs 18,700 = Rs 2200.
If the Basic Salary/Pension is Rs 65,000, the DA/DR at 38% rate will be Rs 24,700. At 34% rate, DA/DR amount is Rs 22,100. This means salary will increase by Rs 24,700-Rs 22,100 = Rs 2600.
