Chartered accountants across India are likely to welcome a new change of rules. The ministry of corporate affairs has issued two circulars that will allow them to form limited liability partnerships. What the circulars do is to clarify the meanings of ‘partnerships’ and ‘body corporates’. The makes it unnecessary to change actual laws.
Without the clarifications, the government would have had to change the Companies Act and the Chartered Accountants Act. Limited Liability Partnerships are hybrid organizations that combine the flexibility of partnerships with the limited liabilities that companies enjoy.
Economic pressures are putting the brakes on Indian car sales. Rising fuel prices and spiraling interest rates are turning customers away, as are the higher price tags on new vehicles. In May, India’s biggest automaker, Maruti Suzuki, saw a mere 3.9% rise in its domestic sales to around 93,519 units. Hyundai’s sales, on the other hand, sped up 14.6% to 31,123 vehicles. The big loser was Tata Motors, with a 9% fall in sales to 19,401 units.
India’s manufacturing growth is also slowing down. As with cars, stubborn inflation and high interest rates have eaten into growth. The Purchasing Managers’ Index for May has fallen marginally to 57.5 for the month of May. That’s compared to 58 in April.