3 banks chosen to channelise govt credit: The government has chosen State Bank of India (SBI), Bank of Baroda (BoB) and Indian Overseas Bank (IOB) for channelising government credit to other countries which runs into billions of dollars. Till now, Exim Bank had virtual monopoly in establishing credit facilities in the form of line of credit either to assist a certain country or boost Indian exports to the country. According to decisions finalised by the finance ministry on the basis of proposals forwarded by the external affairs ministry, the rate of interest on any such line of credit (LoC) will be decided on the basis of four slabs, depending upon the economic health and indebtedness of the country concerned.
Till now, the rate of interest on such LoCs was decided virtually on a case-to-case basis. With the country’s foreign exchange reserves topping $100bn, there is ample scope to boost Indian exports and also provide relief to select countries through such credit facilities, government officials said.

StanChart sets up 100% NBFC subsidiary in India : Standard Chartered Bank of UK has set up an 100% subsidiary — Standard Chartered Investments and Loans ( India ) (SCILL) which will operate as a non-public deposit taking non-banking finance company.

“SCILL will provide us with an additional liquidity raising potential. It will also give the customers an additional investment tool, “ said Christopher Low, CEO, StanChart ( India ).

“The group sees a lot of growth opportunities in India . The NBFC will supplement StanChart’s growth agenda in the country. It will also help diversify the funding base by accessing the capital markets through instruments like commercial paper, Inter Corporate Deposits and non-convertible debentures,” said M A Ravi Kumar, regional head, global markets, StanChart

Steel prices set to rise as NMDC ups input costs: KOLKATA: Indian steel makers are crying foul with public sector mining company National Mineral Development Corporation (NMDC) increasing iron ore prices despite government assurance to stabilise sky-rocketing raw material prices.

Over the last couple of weeks, NMDC has issued letters to various integrated steel companies and a host of sponge iron manufacturers across the country, announcing its decision to increase ore prices by about 10-15 %. So much so NMDC has sought retrospective effects of price increases from January 2004.

In last three months or so this would be NMDC fifth price increase, many of which have been with retrospective effect with a time lag of 2-3 months.

CAs told to define terms of client engagement:

Chartered accountants engaged by companies to compile financial statements and other financial information should ensure that there is a clear understanding with the client on the terms of the engagement, a new Auditing and Assurance Standard by the Institute of Chartered Accountants of India has said.

The standard — AAS31 on engagements to compile financial statements—cleared recently by the Institute’s central council states that an engagement letter documenting the key terms of the appointment should be in place before the accountant begins work.

The objective of a compilation engagement is for the accountant to use accounting expertise to collect, classify and summarise financial information. This entails reducing detailed data to a manageable and understandable form.

The standard states that independence is not a requirement for a compilation engagement. However, where the accountant is not independent, a statement to that effect should be made in the accountant's report.

C&W underlines stable price trend for commercial properties
Global real estate consulting firm Cushman & Wakefield on Monday projected a stable price trend for commercial properties in and around the capital, although prices haved surged by 14 per cent in prime locations.