Economy
January service sector index hits 3-month low
New Delhi : India's services sector activity fell to a three-month low amidst subdued growth in new orders, a key macro-economic data showed on Thursday.
 
The Nikkei Business Activity index fell to a three-month low of 51.4 in February, from 54.3 in January, adding to expectations of a rate cut by the Reserve Bank of India following the union budget for 2016-17 maintaining the fiscal deficit targets for this fiscal and the next, earlier this week.
 
An index reading of above 50 indicates an overall increase in the economic activity, below 50 an overall decrease.
 
The survey said although new services orders continued to rise in February, the rate of expansion eased to the weakest since November 2015, as firms faced strong competition for new work during the month.
 
Instead, the Nikkei India Composite PMI Output index, which tracks both manufacturing and services sectors, fell to 51.2 in February, from January's 11-month high of 53.3.
 
"India's economic growth softened during February, with slowdown evident across both manufacturing and service sectors," said Pollyanna De Lima, economist at Markit, which compiles the survey.
 
"Demand conditions in the country appear to be weak, as indicated by lacklustre increase in new orders," De Lima said.
 
"Although PMI data still signal expansion in output and incoming new work, recent figures are considerably low by historical standards," she added.
 
Survey respondents' confidence on the 12-month outlook for business activity remained positive, although sentiment waned since January.
 
On the possibility of a Reserve Bank rate cut, De Lima said falling price pressures and global economic challenges may open up room for a dovish policy.
 
"One centrepiece of the latest survey result is evidence of fading inflationary pressures which combined with a stuttering recovery and an increasingly challenging global backdrop open up room for a rate cut," De Lima said.
 
At its sixth and the fiscal's final bi-monthly monetary policy review last month, the RBI kept its key lending rate unchanged at 6.75 percent.
 
"The Reserve Bank continues to be accommodative even as it leaves the policy rate unchanged in this review, while awaiting further data on inflation," RBI Governor Raghuram Rajan said in his policy statement.
 
India's consumer price indexed (CPI), or retail, inflation has been rising. As per data released last month, annual retail inflation moved up further to 5.69 percent in January, from 5.61 percent in the month before.
 
A seasonal softening in food prices and a sharp drop in fuel costs caused India's annual wholesale rate of inflation to decline marginally to (-)0.90 percent for January from (-)0.73 percent for the month before, official data showed last month.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Mallya objects to SBI's plea for arrest in debt case
Bengaluru : Liquor baron Vijay Mallya will on Thursday file objections to the State Bank of India's (SBI) interlocutory application (IA) before the debt recovery tribunal seeking his arrest in the defunct Kingfisher Airline's multi-crore-rupee loan default case.
 
"We are filing our objections today (Thursday) against the IA on the merit that the tribunal was not the right forum to seek a defaulter's arrest or impound his passport," Mallya's counsel told IANS here.
 
The bank's IA on Wednesday also sought a direction from the tribunal, headed by judge R. Benkanahalli, to the authority for impounding Mallya's passport, seize his assets and claim on the $75 million (Rs.516 crore) severance package British liquor major Diageo signed with him on February 25.
 
After arguments by the bank's advocate, the judge posted the IA for next hearing on Friday and gave notice to Mallya for filing objections, if any.
 
"The quasi-judicial tribunal is meant to facilitate banks and financial institutions recover outstanding loans speedily and avoid the inordinate procedural delays in civil courts," Mallya's counsel said.
 
Bank's advocate also admitted that he had filed four IAs before the tribunal for Mallya's arrest, impounding his passport, seizing his assets and seeking rights to the Diageo's sweetheart deal in exchange for his resignation as chairman and non-executive director of United Spirits Ltd (USL).
 
Mallya, an independent lawmaker from Karnataka in the Rajya Sabha, is reportedly in New Delhi for attending the budget session of Parliament.
 
A consortium of 17 state-run and private banks led by SBI moved an application a day after the February 25 Diageo deal in the tribunal seeking a directive to Mallya for paying the amount Diageo agreed to pay him over the next five years, including $40 million this year and balance $35 million by 2020.
 
Kingfisher Ltd. owes the consortium Rs.7,800 crore as outstanding loans, including Rs.1,600 crore from SBI as a lead bank over a decade from 2004-12.
 
The debt-ridden airline suspended operations in October 2012 due to staff strike and termination of its licence by the civil aviation regulator DGCA subsequently.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

manoharlalsharma

1 year ago

Angered to negative publicity Mallya gone to court otherwise other businessman r doing their business as usual under 5/25 model and now gone in profit mode.the lose of opportunity and lock of about 2.33 lac investors, it is not good development.

ASCI bans 42 ads, including Snapdeal, Olx, Uber, Airtel, Honda Cars, Bharti Axa Life in December
Educational advertisements remained at the top of the number of complaints received by ASCI during December 2015 followed by health and personal care and e-commerce categories
 
The Consumer Complaints Council (CCC) of the Advertising Standards Council of India (ASCI) has banned as many as 42 advertisements out of 79 complaints it received across segments during December 2015. 
 
The banned ads are from prominent companies like Snapdeal, Olx India, Koovs, Uber India, Mobikwik, Bharti Airtel (three ads), Tata Steel Ltd (Tata Shaktee steel roofing sheets), Honda Cars India Ltd (Honda Amaze), Agarwal d2d Packers and Movers Ltd and Bharti Axa Life Insurance Company Ltd (Bharti Axa Life Invest Once), KFC Corp (Offer of two pieces of chicken for Rs99), Colgate-Palmolive India Ltd (Colgate), Marico Ltd (Nihar Shanti Amla Hair Oil), Times Broadcasting Ltd (ET Now) and British Broadcasting Corporation (BBC World News) among others, they range from FMCGs to autos, personal accessories to alcohol, and education to media.
 
“...Out of 42 advertisements against which complaints were upheld, 8 belonged to the Healthcare category, 9 to the Education category, followed by 7 in the E-commerce category, 3 in Telecommunication and broadband category and 15 advertisements from other categories,” ASCI said in a release.
 
Here are the ads that were banned by ASCI during December 2015…

 

HEALTH CARE

 

The CCC found the following claims in health care product or service advertisements of 8 advertisers to be either misleading or false or not adequately / scientifically substantiated and hence violating ASCI’s Code. Some of the health care products or services advertisements also contravened provisions of the Drug & Magic Remedies Act and Chapter 1.1 and III.4 of the ASCI Code. Complaints against the following advertisements were UPHELD.
 
1. Life cell International Private Limited (Stem cell Banking): The advertisement’s “Gynaecologists Recommended” claim support data was not considered to be recent and inadequate to make such claim currently. Also, the source of the research study was also not quoted in the advertisement. Further the advertisement states, “Life cell the #1 Cell Bank” was not substantiated. The claim in the advertisement, “Choice of over 1, 30,000 parents” was not substantiated and was misleading by ambiguity as this number of samples preserved need not correspond to 1, 30,000 parents as one parent could have provided more than one sample.
 
2. Shathayu Ayurveda (Manage Diabetes by Ayurveda Panchakarma - Detox): The claims in the advertisement, “Manage diabetes by Ayurveda Panchakarma (detox)”, “Pacifies/Prevents the diseases”, “Improves strength & complexion” and “Increases immunity”, were not substantiated.  
 
3. M/S. S. A. Safiullah & Co (Nizam Pakku): The advertisement is about taking arecanuts. The voiceover of a child in the advertisement is likely to encourage minors to consume the product which could cause harm to them.
 
4. Iqra Herbals (IH3 Capsules-Penis Enlargement Capsules): The claims in the advertisement, “No need to be average”, “Add size to your manhood” and “Best Product”, were not substantiated with product efficacy data.  Also, the claims read in conjunction with the advertisement visual, imply that the product is meant for enhancement of sexual pleasure, which is in breach of the law as it violates The Drugs & Magic Remedies Act.
 
5. Iqra Herbals (NightKing Delay Liquid): The claims in the advertisement, “Last upto three hours in bedroom” and “Guaranteed Product”, were not substantiated. Also, the claims, read in conjunction with the advertisement visual, imply that the product is meant for enhancement of sexual pleasure, which is in breach of the law as it violates The Drugs & Magic Remedies Act. 
 
6. Iqra Herbals (Virgin Again): The claims in the advertisement, "Get your teenage back”, “Tighten & restore grip of loose vagina in minutes” and “Guaranteed Product”, were not substantiated.  Also, the claims read in conjunction with the advertisement visual, imply that the product is meant for enhancement of sexual pleasure, which is in breach of the law as it violates The Drugs & Magic Remedies Act. 
 
7. Baljiwan Medicines (P) Ltd. (Baljiwan Ghutti): The advertisement of baby health tonic Baljiwan Ghutti showcases their product mentioning original and adjacent to it a different packing is displayed with a cross on it, mentioning “Nakli” (fake). In absence of valid supporting data to prove that the product being depicted in the advertisement as “Nakli” (fake), the advertisement directly and unfairly denigrates the other product.
 
8. Apollo Heart Centre (Heart Blockages treatment without Operations): The claims in the advertisement, “Heart Blockages treatment without operation”, “to increase pumping capacity of Heart (Ejection fraction) by EECP Machine”, “Guaranteed results” and “US FDA approved therapy”, were not substantiated.
 

EDUCATION

 
The CCC found that claims in the 9 advertisements were not substantiated and, thus, violated ASCI Guidelines for Advertising of Educational Institutions. Hence complaints against these advertisements were UPHELD.
 
9. Shyamli Institute of Hotel Management: The claims in the advertisement, “recognition of hotel management courses by UGC & AICTE”, “UGC & AICTE approved” and “job guarantee” (Naukri Sunishit) were not substantiated. 
 
10. Knowledge Station India Private Limited (The Santa Kidz): The advertisement’s claim, “Rajasthan's No. 1 School“, was not substantiated with supporting comparative data versus other institutes. Also, the claim, “India’s 1st Brain School with D.M.I Technology”, was not substantiated and was considered to be misleading by ambiguity as the advertisement does not give any credible references to authenticate the D.M.I. technology or how the school provides the implied unique brain development benefits of D.M.I Technology over conventional practices followed in other schools.    
 
11. Triumphant Institute of Management Education Pvt. Ltd.: The claims in the advertisement, “2116 T.I.M.E students into the IIMs alone – a total of 7379 final selections in CAT- 2014” and “Process and Results validated by an independent third party on 21/09/2015”, were not substantiated.
 
12. Triumphant Institute of Management Education Pvt. Ltd. (TIME Tuitions): The advertisement’s claims, “T.I.M.E., the national Leader in entrance exam training with 200+ centres across India” were not substantiated with supporting data.
 
13. Triumphant Institute of Management Education Pvt. Ltd (Aqua Regia the Science Quiz 2015): The claim in the advertisement, “Aqua Regia the Science Quiz 2015 - Certified by Guinness World Records & Limca Book of Records as the Largest Quiz Ever”, was not substantiated with supporting data. 
 
14. CATKing (CLAP Digital Marketing Course): The claims in the advertisement with reference to Mr Rahul Singh - “He pursued his MBA from SP Jain Institute of Management & Research, Mumbai”, “He also achieved a degree in Master of Information Technology from Virginia Tech”, and “Certification from a Harvard Business School Alumni”, were false, not substantiated with evidence, and were misleading. 
 
15. Triumphant Institute of Management Education (Times Google Search Result Validation): The claim in the advertisement, “Best Coaching Institute for CAT, GATE, Bank Exams, CSAT….” is an absolute claim and was not substantiated with comparative data versus other institutes.
 
16. CL Educate Ltd (CAT 16/17 Program): The claims in the advertisement, “Your Gateway to IIM”, “Closest to CAT”,  “9629 IIM Calls by CL students in CAT’14”, “The most comprehensive CAT ‘16/17 classroom program”, were not substantiated with supporting data.  Also, the claim, “9629 IIM Calls by CL students in CAT’14”, is misleading, as it does not match with the CA report on pages 6, 7, 8 – Clause 6 – Conclusion, the total adds up to 8793 only as against 9629 IIM calls as claimed in the advertisement.
 
17. Mahendra Education Pvt. Ltd (Mahendra’s No.1 Institute): The claim in the advertisement, “No. 1 Institute in India”, was not substantiated.
 

E-COMMERCE

 
18. Seven Mantras: The claim in the advertisement, “Delivery Charges Rs.99/- extra”, was found to be false. 
 
19. Snapdeal: The claim in the advertisement, “free delivery” was not substantiated.   
 
20. OLX India (Olx.in): The phrase “kahan se kharchega paise, baniye ka jo poot hai, aadhe khakhe diya dhaba jisme dry fruits hai” used in the advertisement was deriding a certain caste of people (baniya). 
 
21. OLX India Pvt. Ltd. (OLX.in – sell scooter n buy bike): The visual of “a police inspector riding a bike without a helmet” as shown in the advertisement, promotes an unsafe practice.  
 
22. Koovs Marketing Consulting Pvt. Ltd. (KOOVS.com): The scenes in the advertisement - “a girl jumping from a top floor of a building to a shirt which is hanging in the air, a girl jumping from a balcony and falling down a few floors down across the staircase, a boy jumping down from the balcony straight into the outfit, without justifiable reasons show and encourage dangerous practices, manifest a disregard for safety and encourage negligence. Regardless of the disclaimer, the advertisement contravened the ASCI Codes due to the objected visuals being shown.
 
23. Uber India (Uber Cabs): The claim in the advertisement, "Switch to Uber @ Rs.9/-per km period", was not substantiated and was also misleading by omission of any disclaimer that other additional charges are also being charged per minute/per trip. 
 
24. One Mobikwik Systems Pvt. Ltd (Mobikwik Cashback Offer): The claim in the advertisement, “Cashback offer”, was not substantiated.   

 

TELECOMMUNICATION & BROADBAND

 

25. Bharti Airtel Ltd. (50 % Cash back): The advertisement by Airtel showcases a girl entering a room of friends in the night and tells them to use internet on their phone in the night because they will get 50% cash back the next day. Regardless of the disclaimer, the word “Cash Back” in the claim “50% cash back on night internet” is incorrect and is misleading. 
 
26. Bharti Airtel Ltd. (Unlimited songs for free): The advertisement claims “unlimited song downloads for free on Airtel”, is misleading by ambiguity as the data plan is required to be purchased and the “download activity” for the unlimited music is also not free as there is an applicable data charge. 
 
27. Bharti Airtel Ltd. (50% data offer): In the advertisement, Airtel claims “50% data offer” during night time from 12am to 6am. The language of the super in the advertisement was not in Hindi and the hold duration of the disclaimer in the TVC was less than 4 seconds. Thus, the TVC contravened the ASCI Guidelines on Supers.  
 

OTHERS

 

28. Tata Steel (Tata Shaktee steel roofing sheets): The advertisement’s claim, “usage of Asbestos roofing sheets is hazardous to health”, was not substantiated and was found misleading by gross exaggeration. The advertisement also claims, “Superior in quality”, which was not substantiated. Also, the visual of asbestos roofing with a hole was considered to unfairly denigrate asbestos cement sheets.  
 
29. Devi Lal Tantrik: The claims in the advertisement, “Devi Lal Tantrik – specialist in love marriage, vashikaran, videsh mein pakka hone main rukavat, naukri, karobar, lottery, satta”, were false, misleading by exaggeration, and these claims exploits consumers’ lack of knowledge and are likely to lead to grave or widespread disappointment in the minds of consumers.   
 
30. Honda Cars India Ltd (Honda Amaze): The claims in the advertisement, “lowest turning radius”, “25.8 kmpl”, and “High Ground Clearance”, were not substantiated.  Also, the Super hold duration did not meet the ASCI’s Super Guidelines, and the disclaimer in the advertisement was not legible.  
 
31. Agarwal d2d Packers and Movers Ltd.: The claim in the advertisement, “60% people in the country Shift through us”, was not substantiated.
 
32. Bharti Axa Life Insurance Company Ltd. (Bharti Axa Life Invest Once): The advertisement claims, “10 guna life cover”, “Tax benefits” and “Up to 9% guaranteed additions”, was found incorrect. In a scene in the advertisement showcasing the couple “only contemplating”, as argued by the advertiser, was found to be wrong as the advertisement shows the couple ending the confusion by accepting the pitch for the product.  Buying the advertised product for “Confusion Ka End” makes fun of the decision making process for investing money. The advertisement also claims “with life insurance get the investment benefit too” which was found incorrect. The advertisement picking up one aspect for comparison FD (taxable), Gold (rates down), equity investment Markets (volatility) to push “Confusion Ka End” with Bharti AXA Life Invest Once was considered unjustified.
 
33. Microtek International Pvt. Ltd (Microtek Inverter UPS): The claim in the advertisement, “Ye itni bijali bachae ke 3 sal me ho jaye free” (“Saves so much electricity so that it becomes free in 3 years by saving electricity”) was not substantiated with comparative data.  
 
34. KFC Corporation (Offer of 2 pcs of chicken for Rs. 99/-): Regardless of the disclaimer in the advertisement, the advertisement shows the picture of a Burger and 2 chicken pieces read in conjunction with the offer of “2 pcs for Rs.99/-“, prominently displayed, is misleading by implication that the whole package costs Rs.99/- (discounted price). 
 
35. Kwality Confectioners & Bakery (India) Pvt. Ltd (Brown Bread): The claims in the advertisement, “Your way to natural health” and “High fibre and low calories”, were not substantiated with technical data and are misleading by ambiguity.
 
36. Manju Groups (Manju Groups Bhavishya Beach): The claim in the advertisement of the real estate company, “Manju Group project (Bhavishya Beach) is situated in Pondicherry”, was not substantiated. 
 
37. Ruparel Group (Ruparel Reality): The claims in the advertisement, “project approved by leading financial institutions and all government approvals received”, were not substantiated. Also, the claim when read in conjunction with the disclaimer is misleading; as the disclaimer states that “the features mentioned in the advertisement are only indicative of the kind of development proposed and are subject to approvals from respective authorities”.  
 
38. The Wadia Group (Bombay Reality): The claim in the advertisement, “project approvals received”, was not substantiated. Also, the claim when read in conjunction with the disclaimer is misleading, as the disclaimer states, “the plans, specifications, Visuals, images, dimensions, etc., are indicative and strictly for representation purposes only and are subject to approval from the competent authorities”.
 
39. Colgate-Palmolive India Ltd. (Colgate): The scene in the advertisement showing ‘two young school students kneeling on the school floor”, is in violation of Article 21 of the Protection of Children against Corporal Punishment in Schools and Institutions. Also, the advertisement is likely to result in the physical, mental or moral harm of the children.
 
40. Marico Ltd (Nihar Shanti Amla Hair Oil): The advertisement’s claim “500% jyada Vitamin E” was found misleading. The choice of comparison with a product that does not contain Vitamin E confers an artificial advantage upon the advertiser and there is likelihood of consumer being misled. Also, such comparison unfairly discredits Dabur Amla product.  
 
41. Times Broadcasting Ltd (ET Now): The advertisement claims, “No.1 Now an Undisputed leader” and “No 1 Week after Week”. ET Now has used weekly data to claim leadership position. This is in violation of BARC India Ratings – Principles of Fair and Permissible Usage, which state that “The period of comparison must cover at least four consecutive weeks of data". Thus, the advertisement promo also contravened Chapter I.3 of the ASCI Code. 
 
42. British Broadcasting Corporation (BBC World News): The claim in the advertisement, “BARC says we are India’s No.1 English news brand”, violates the Guidelines of BARC under Measurement & Comparison and also contravenes the ASCI Code. 

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COMMENTS

Rakesh Tripathi

1 year ago

Very informative. Thanks.

Ralph Rau

1 year ago

Exemplary penalties need to be imposed where there is a wanton mis-representation of the facts.

B. Yerram Raju

1 year ago

My heartiest compliments for the article. This article should actually go viral.

Several educational institutions are spending hundreds of lakhs of rupees on advertisements. A good educational institution does not need an advertisement. The outgoing students and their word of mouth spreading the virtues are enough for a school to attract the attention of the next generation of students. To the extent of such expenditure, the fees can be reduced and education can be made more affordable.
Immediately after formation of Telangana State, the new government was aghast to find as many as 110 B-Schools and Medical colleges did not even have the basic laboratories and wherewithal to even call themselves a primary school and yet several enrolments were shown to draw the incentives from the government. There was a thorough audit by the accredited university.

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