Leading cellulose-based pharmaceutical excipients manufacturer, Accent Microcell, has announced the opening of its Initial Public Offering (IPO) on December 8, with the price band set between Rs 133 and Rs 140 per share. The public issue, conducted through the book-building route, comprises a fresh issue of 56 lakh Equity Shares with a face value of Rs 10/-. The company plans to raise approximately Rs 78.40 crores from the IPO and aims for listing on NSE Emerge. The Anchor portion will open on December 7, and the issue will conclude on December 12.
Utilizing Proceeds for Expansion in Gujarat
Accent Microcell intends to utilize Rs 54.39 crores from the net proceeds to establish a new plant at Navagam Kheda, Gujarat, India. The plant will focus on manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG), and Carboxymethylcellulose (CMC), with commercialization expected by April 2025.
Diverse Excipient Production Portfolio
The company, known for its production of Microcrystalline Cellulose (MCC), also manufactures other excipients such as Croscarmellose Sodium (CCS) and Magnesium Stearate (MS). MCC finds applications in pharmaceutical, nutraceutical, food, cosmetic, and other industries.
Strong Financial Performance and Growth Plans
Accent Microcell reported a revenue of Rs 58.81 crores in Q1 of FY24, with a notable FY23 revenue of Rs 204.19 crores. The company’s Profit After Tax (PAT) more than doubled to Rs 13.01 crores in FY23, reflecting robust financial performance. The IPO structure includes allocations for Anchor, Market Maker, QIB, NIIs, and Retail (RII) portions.
In a significant move to strengthen its financial capabilities, Share India Fincap has entered into a strategic partnership with the State Bank of India (SBI). SBI has extended credit facilities totaling Rs 200 million to Share India Fincap, thereby augmenting the company’s lending capacity and solidifying its presence in the financial market.
Empowering Financial Growth and Inclusivity
This collaboration between Share India Fincap and SBI is more than a financial arrangement; it represents a strategic alliance aimed at promoting financial empowerment and inclusivity. The credit facilities provided by SBI will empower Share India Fincap to diversify its loan portfolio, explore new business avenues, and consistently deliver high-quality financial services to its clients.
Enthusiastic Partnership and Growth Strategies
Aastha Gupta, CEO of Share India FinCap, expressed enthusiasm about the partnership, highlighting the honor of aligning with SBI—a distinguished institution committed to excellence. The collaboration signifies a mutual dedication to fostering financial growth and expanding their collective impact on the financial landscape. The Rs 200 million credit facilities from SBI will play a pivotal role in fueling Share India Fincap’s growth strategies and meeting the evolving needs of its clients.
Commitment to Economic Development
Share India Fincap remains dedicated to upholding the highest standards of financial integrity and customer satisfaction as it enters this new phase of growth. The financial institution sees the collaboration as an opportunity to enhance its lending capabilities, particularly in supporting small and medium-sized enterprises (SMEs) and contributing to the overall economic development of the region.
Creating Value and Strengthening Market Position
Looking ahead, Share India Fincap aims to leverage this collaboration to create value for stakeholders, strengthen its market position, and continue its mission of providing innovative and reliable financial solutions. The partnership reflects a commitment to excellence, growth, and making a positive impact on the financial landscape.
India’s adoption of the dual GST model, with both the Centre and States levying taxes, has led to the emergence of parallel tax investigations. This article explores the intricacies of this dual administrative structure, where both Central and State Governments have the authority to administer GST, potentially resulting in parallel proceedings.
Legislative Safeguards: Section 6 of the CGST Act
To prevent undue scrutiny of a single transaction by both tax authorities, Section 6 of the Central Goods and Services Tax Act (CGST Act) empowers Central and State Tax officers. Notably, Section 6(2)(b) restricts the initiation of proceedings by one authority if the other has already started proceedings on the same subject matter. This legislative provision aims to uphold the principles of “Comity of Courts” and protect taxpayers from multiple, concurrent investigations.
Judicial Interpretations and Challenges
Recent cases, such as GK Trading, highlight the challenges in interpreting terms like ‘inquiry,’ ‘proceedings,’ and ‘subject matter’ in the context of the CGST Act. The judiciary’s role is crucial in ensuring a balanced application of Section 6, preventing overlapping jurisdiction, and safeguarding individuals’ rights. However, diverse judicial views and the evolving nature of GST implementation underscore the need for continual legal scrutiny and refinement.
Balancing Act for a Unified National Market
Section 6 serves as a legal bulwark against the infringement of individuals’ rights and the burdensome prospect of facing multiple investigations for a single event. While providing clarity on jurisdiction, the delicate balance between Central and State tax authorities requires ongoing legal evolution to fortify the integrity of India’s GST framework. As the system matures, harmonization and legal clarity will be paramount to protect the interests of taxpayers and ensure a streamlined taxation process.
Ashv Finance, the Mumbai-based cash-flow focused lender to Micro, Small, and Medium Enterprises (MSMEs), and a part of the NBFC Aavishkaar Group, has secured $10 million in funding from Encourage Capital. The funds are earmarked for the expansion of Ashv Finance’s footprint across India and the launch of a significant initiative—financing rooftop solar projects for micro and small businesses.
Encourage Capital’s Commitment to Impact
Encourage Capital, an impact investment and advisory firm with a focus on the financial sector, expressed enthusiasm about partnering with Ashv Finance. Tarun Arora, Partner at Encourage Capital, highlighted Ashv Finance’s tech-led and data-driven lending model, aiming to empower the underserved MSME market. The investment aligns with Ashv Finance’s commitment to launching rooftop solar financing as its inaugural climate finance product.
Ambitious Plans and Sectoral Focus
Ashv Finance aims to deploy the raised funds to strengthen its nationwide presence and disburse loans totaling Rs 390 crore to micro and small enterprises involved in rooftop solar ventures over the next five years. The lender aspires to scale its Assets Under Management (AUM) to Rs 1,800-2,000 crore.
MSMEs Embracing Solar Energy
The funding aligns with the broader trend of MSME lenders supporting businesses adopting solar energy for sustainability. Ashv Finance joins the ranks of financial institutions contributing to India’s energy goals through the financing of rooftop solar projects. The move reflects the growing recognition of solar energy’s reliability and its crucial role in achieving renewable energy targets.
Industry Initiatives for Solar Adoption
This strategic funding follows similar initiatives by other entities in the financial sector, such as Tata Power Solar Systems partnering with SIDBI and Yes Bank launching the YES KIRAN program for MSMEs installing solar panels. The sector’s growth, as highlighted by Power Minister R.K. Singh, hinges on supportive regulatory structures for power generation and transmission within the solar energy domain.
In a recent ruling, the National Company Law Tribunal (NCLT) Ahmedabad Bench, led by Mrs. Chitra Hankare (Judicial Member) and Dr. Velamur G Venkata Chalapathy (Technical Member), clarified the status of dues owed to the Employees State Insurance Corporation (ESIC) under the Insolvency and Bankruptcy Code (IBC). The NCLT determined that ESIC dues do not hold an equivalent standing to the dues of Provident Fund, Pension Fund, or Gratuity Fund under the IBC.
Differential Treatment of ESIC Dues:
The NCLT’s decision emphasized that the dues owed to ESIC do not fall within the category of ‘workmen dues’ at the same level as Provident Fund, Pension Fund, or Gratuity Fund. This implies a distinct classification for ESIC dues in the context of insolvency proceedings.
Implications for Liquidation Estate:
Importantly, the ruling clarified that ESIC dues are neither treated at par with other statutory dues nor are they excluded from the liquidation estate. This distinction underscores the unique position of ESIC dues in comparison to other financial obligations, providing clarity on their treatment within the insolvency framework.
The NCLT’s nuanced interpretation of ESIC dues in relation to other financial obligations sheds light on the prioritization and categorization of dues within the IBC framework, ensuring a clearer understanding of the hierarchy of payments during insolvency proceedings.
Reserve Bank of India (RBI) reported a substantial increase in credit to Micro, Small, and Medium Enterprises (MSMEs), constituting 15% of the banks’ non-food credit totaling Rs 154 lakh crore during the month. This marked a notable uptick from the 14.6% recorded in October the previous year. Specifically, credit to Micro and Small Enterprises (MSEs) experienced a robust growth of 24.2%, reaching Rs 18.53 lakh crore compared to Rs 14.92 lakh crore in the corresponding period last year.
Sectoral Deployment Highlights
Scheduled commercial banks deployed Rs 23.15 lakh crore in gross bank credit to MSMEs under priority sector lending in October. This figure represented a significant 22.8% increase from the previous year’s Rs 18.8 lakh crore and an 11.8% rise from September’s Rs 20.6 lakh crore. Credit deployment to Medium Enterprises also saw a noteworthy uptick, rising by 17.3% to Rs 4.61 lakh crore from Rs 3.93 lakh crore in October last year.
Challenges and Survey Insights
Despite this surge, a survey by FICCI highlighted challenges faced by SMEs, indicating that collateral-free credit, though outlined on paper, is not effectively implemented. The survey, involving 610 respondents, noted banks’ hesitancy to provide financing to SMEs without collateral. Additionally, the implementation and accessibility of government schemes, such as the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme, faced hurdles post-COVID.
Asset Quality and Outlook
Addressing concerns about asset quality, the gross non-performing assets (GNPAs) in MSME loans by scheduled commercial banks decreased by 14.3% to Rs 1.31 lakh crore for FY23 from Rs 1.54 lakh crore in FY22. This positive trend suggests a potential improvement in the health of MSME loans.
E-commerce logistics and shipping software firm Shiprocket has unveiled Shiprocket Capital, a novel financing platform set to disburse up to Rs 100 crore to small and medium businesses (SMBs) operating online. The platform aims to provide revenue-based financing, offering collateral-free funds without equity dilution. This initiative is designed to assist SMBs in ramping up inventory, boosting marketing efforts, enhancing production, and expanding into new markets.
Key Features of Shiprocket Capital:
Shiprocket Capital plans to facilitate Rs 10 crore in revenue-based financing to SMBs within the next 12 months, starting December 2024. The repayment structure involves a one-time fee and a percentage of revenue generated by the SMB.
Diverse Support for E-commerce Businesses:
Shiprocket Capital is tailored to cater to e-commerce businesses spanning various categories, including fashion, consumer electronics, beauty and personal care, home and kitchen, and jewelry and accessories. The initiative acknowledges the challenges faced by e-commerce entrepreneurs in accessing traditional financing methods and seeks to streamline the process.
Efficient Disbursement Through NBFC Partners:
Capital disbursement will be carried out through partner non-banking financial companies (NBFCs) such as InCred, Indifi, Klub, Stride, Vedfin, Velocity, and GetVantage. Shiprocket aims to ensure a swift turnaround, disbursing funds within two days of document submission by the SMB.
Saahil Goel, Co-founder and CEO of Shiprocket, emphasizes the platform’s commitment to building a thriving ecosystem of one million e-commerce businesses in India by 2025. Shiprocket Capital stands as a strategic move to empower these businesses and be a growth partner through flexible capital solutions.
In a proactive move to bolster cybersecurity measures, the Goods and Services Tax Network (GSTN) has initiated the implementation of Two-Factor Authentication (2FA) for taxpayers accessing the GST portal. The successful pilot rollout in Haryana has paved the way for the first phase, encompassing Punjab, Chandigarh, Uttarakhand, Rajasthan, and Delhi.
Key Features of 2FA Implementation:
To access the GST portal, taxpayers will now be required to undergo a two-step verification process. After entering their user ID and password, a one-time password (OTP) will be dispatched to the registered Mobile Number and Email ID of the Primary Authorized Signatory.
Ensuring Smooth User Experience:
To facilitate a seamless experience, taxpayers are urged to maintain up-to-date contact information for their Authorized Signatory on the GST Portal. The OTP will only be solicited when there is a change in the taxpayer’s system (desktop or laptop) or location.
Phased Rollout Across India:
The rollout of 2FA commences on December 1, 2023, beginning with the aforementioned states in the first phase. Subsequently, the second phase will witness the extension of 2FA to all states across the country, solidifying the GSTN’s commitment to nationwide cybersecurity.
This strategic move aligns with the evolving landscape of online security, safeguarding taxpayer information and fortifying the integrity of the GST portal.
When setting up a small manufacturing plant, determining the appropriate license is crucial. The Shop and Establishment Act and the Factories Act govern distinct aspects of business operations. The Shop and Establishment registration, mandated by state-specific laws, is essential for commercial spaces, including shops, offices, and entertainment venues. This license is obligatory within 30 days of starting operations and plays a pivotal role in business documentation.
Shop and Establishment License: A Business Necessity
Applicable to a range of businesses, including home-based and e-commerce enterprises, the Shop and Establishment license is a fundamental requirement. It establishes the legitimacy of your business, facilitating processes such as securing loans and opening bank accounts. Compliance with this Act ensures adherence to working condition regulations.
Factory License: Safeguarding Workers’ Well-being
For small manufacturing plants, the Factories Act, 1948 stipulates the need for a factory license. Mandatory for factories with specified worker counts, this license ensures the welfare of workers and adherence to safety measures. Renewal options are available, making owners eligible for government benefits and safeguarding against penalties.
Navigating the Licensing Landscape
While the Shop and Establishment license focuses on working conditions in commercial spaces, the Factory license is tailored for manufacturing units. Careful consideration of the nature of your business and workforce size will guide you in choosing the appropriate license, ensuring legal compliance and the well-being of your employees.
The Income Tax (IT) Department is considering filing an appeal in the Supreme Court against a Delhi High Court ruling that rendered any IT assessment order without a Document Identification Number (DIN) legally invalid. The Delhi HC, in April, upheld the 2019 Central Board of Direct Taxes (CBDT) circular, mandating DIN for issued documents. The circular stated that any communication lacking DIN would be considered invalid. The IT Department argued that the absence of DIN is a technical glitch, not an oversight affecting the validity of assessment proceedings. However, the HC deemed this argument “untenable,” citing the CBDT circular’s explicit language.
Legal Implications and Potential Appeal
The Delhi HC ruling has legal implications, rendering numerous previously issued orders legally invalid due to the absence of DIN. The IT Department is in the process of finalizing its appeal to the Supreme Court, seeking expert opinions before proceeding.
CBDT Circular Binding and Jurisdictional Error
Legal experts note that the Delhi HC ruling establishes two key positions: CBDT circulars are binding and mandatory, and non-compliance with CBDT circulars constitutes a jurisdictional error. The court rejected the notion that such errors could be rectified under Section 292B of the IT Act.
Potential Ramifications on Time-Bound Notices
The ruling has led to an influx of writs from taxpayers challenging assessments where DIN was missing. The IT Department may contest the High Court’s decision, particularly concerning time-barred notices/orders, where applying DIN retroactively could pose challenges.
