So What Did Consumers Go Crazy About on Amazon Prime Day?
Nothing probably signals the huge popularity of Maggi noodles - once banned by Indian government- than the numbers it notched up on Amazon’s prime day sales. According to a Nestle communication to stock exchanges, a limited edition assorted box became the best seller in the grocery and gourmet section within four hours. This also signals a change in purchasing patterns, where online platforms, which are able to create special packages and deliver them nationwide may be able to sweep sales if the product catches the buyers’ fancy. 
 
Nestle says Maggi Fusian, its range of Asian flavour inspired noodles, have garnered overwhelming consumer response on Amazon Prime Days, witnessing an equivalent of 2.5 lakh single units being sold over a two day period, with orders coming from 29 states of India. 
 
"This is the highest ever sale over a two day period of any Maggi noodle variant unit on an e-commerce platform and surpasses what we had achieved while relaunching the brand in 2015," says Nikhil Chand, director for foods and confectionery at Nestle India.
 
According to the company, its limited edition assortment box, created for the platform, became the bestseller in the 'grocery and gourmet foods' section within four hours of the launch and continued to be the most sold item during the entire duration of sales on this section. The box was also the most 'wished for' product in the same section, when the 'Prime Day' sales closed, it added.
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    IL&FS Fallout? After ICRA, CARE Rating Sends Its MD & CEO Rajesh Mokashi on Leave
    CARE Ratings has sent its managing director & chief executive (CEO) Rajesh Mokashi on leave with immediate effect, until further notice. CARE is the second ratings agency to send its top executive on leave after ICRA, post an anonymous complaint forwarded by Securities and Exchange Board of India (SEBI) to the agencies for probe.
     
    "The board of directors of CARE Ratings has at its meeting decided, pending the completion of the examination of anonymous complaint received by SEBI to place Rajesh Mokashi, MD & CEO of CARE, on leave, with immediate effect, until further notice," the statement from the ratings agency says. 
     
    Mr Mokashi has been associated with CARE Ratings since 1993 and, in August 2009, was appointed on the company board.
     
    CARE Ratings has appointed TN Arun Kumar, its executive director for ratings, as interim CEO and will not be part of ratings operations to ensure independence of ratings, it added.
     
    Earlier this month, ratings agency ICRA sent its MD & CEO Naresh Takkar on leave following concerns raised in an anonymous representation shared by the market regulator.
     
    Almost all rating agencies had given high ratings to Infrastructure Leasing & Financial Services (IL&FS) when the ground reality of the company was different. The rating agencies have been accused of not reporting the deteriorating financials of IL&FS. This prompted SEBI in December last year to initiate adjudication against credit rating agencies.
     
    As per the interim report of the serious fraud investigation office (SFIO), the modus operandi of IL&FS group from 2015 to 2018, was to keep the holding company and its immediate subsidiaries financially viable and healthy, through an unsustainable, pyramidal funding, routing short-term funds borrowed at the holding company or the subsidiary company level to its various step-down or project subsidiaries, as the holding companies' contribution or to avoid default on these companies' borrowing.
     
    The report says, "Defaults in the group companies were avoided for the period by routing funds borrowed by key companies, which projected a financially healthy picture, thus creating an unsustainable bubble in the absence of sufficient revenue generation internally by the IL&FS group."
     
    According to SFIO, this was done to project key subsidiaries of IL&FS as financially sound through the interest charges, dividend and fee-based returns as well as through ever-greening of loan. This allowed IL&FS and its key subsidiaries to enjoy regular dividends, interest payments and high credit ratings.
     
    During September 2018, rating agencies ICRA, CARE and India Ratings downgraded the bonds, long-term loans and short-term commercial papers of IL&FS and its subsidiaries. It is interesting to note that IL&FS did not seek ratings from CRISIL.
     
    The credit ratings of IL&FS’ bond papers went down by nine notches to ‘BB’ grade, which is considered non-investment grade, from ‘AA+’ which indicates a strong financial profile.
     
    The ratings of commercial papers, which are debt papers that mature within a year, went down by six notches to A4 from A1+, another instance of sharp change in the financial profile from strong to very weak.
     
    Several mutual fund (MF) schemes hold the debt papers of IL&FS, and its subsidiaries, in large numbers. The total amount of currently outstanding debt papers held by MF schemes was valued at around Rs2,400 crore as at end-August, before the downgrade.
     
    Separately, CARE Ratings says it has appointed Najib Shah, former chairman of Central Board of Excise and Customs (CBEC), as additional independent director on its board.
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    COMMENTS

    Prakash Bhate

    6 days ago

    Financial rating companies and auditing firms indulging in this kind of nefarious activities are financial terrorists who have done more harm to the country than that done by Masood Azhar, Dawood Ibrahim, Hafeez Saeed, etc. They should have been chased, hounded, caught and punished. Sending their head honchos on leave is like asking Masood why a good boy like him is doing what he is doing and telling him that he should not do such things in future.

    Madhu K R V

    1 month ago

    Financial rating companies and the Auditing firms lost credibility. There should be serious introspection needed for better India. Book the culprits as per the law; no mercy allowed on these idiots :(

    Government to amend IBC, raise resolution time frame limit to 330 days
    The government on Wednesday cleared the introduction of seven amendments to the Insolvency and Bankruptcy Code (IBC) in the Parliament, including raising maximum resolution time frame limit to 330 days from the current 270 days.
     
    Accordingly, the government is now expected to introduce the IBC (Amendment) Bill, 2019.
     
    "The amendments aim to fill critical gaps in the corporate insolvency resolution framework as enshrined in the Code, while simultaneously maximising value from the Corporate Insolvency Resolution Process (CIRP)," an official statement said.
     
    "This will enable the government to ensure maximisation of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines," it added.
     
    As per the statement, other amendments include "inclusion of commercial consideration in the manner of distribution proposed in the resolution plan within the powers of the Committee of Creditors".
     
    The changes in the IBC process would also entail bringing more clarity over implementation of restructuring schemes such as mergers, de-mergers, amalgamations etc. as part of the resolution plan. Also, a time frame may be given for acceptance or rejection of an application for initiating insolvency process against an entity.
     
    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

    A BANERJEE

    1 month ago

    What is the "going rate" in the market for getting the desired "rating"?

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