More accountability on auditors; Surrogate advertising from betting apps
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, September 1, 2024. My name is Nelson John. Let's get started.
The Adani Group plans to invest $1 billion in acquiring packaged consumer goods brands in southern and eastern India. Anirudh Laskar reports that the investment will be made through its subsidiary, Adani Wilmar. This move is part of the group's strategy to expand its presence in the fast-moving consumer goods segment. Adani Wilmar aims to make multiple acquisitions over the next few years and anticipates a surge in demand for its products. The Group has previously used this strategy in other sectors too, like renewable energy and the cements business.
India's audit authority plans to close a loophole that lets companies escape scrutiny over fund misuse by making lead auditors of conglomerates more responsible. This addresses a gap in accounting standards that let main auditors depend on subsidiary auditors without accountability. Gireesh Chandra Prasad writes that the previous practice posed a potential risk and additional burden for auditors. The National Financial Reporting Authority aims to issue new, stricter guidelines to ensure lead auditors fully oversee and answer for the entire group's financial statements — this would be aligned more with global practices.
In July, a massive digital attack on a popular cryptocurrency platform led to half the depositors losing their money. India's largest crypto platform WazirX saw a massive attack that led to a huge chunk of their user base of 42 lakh people lose some money. But since this is a decentralised currency, the government isn't safeguarding investors. Neil Borate and Anil Poste spoke to investors who lost their money in this attack, who have no redressal mechanisms so far. A lack of regulatory clarity and no action from WazirX has baffled those who used the platform to buy crypto currencies.
Even though online betting is mostly illegal in India, global betting platforms are finding clever ways to sneak back into public view. They're popping up everywhere, from digital ads to sports jersey sponsorships, and they're using celebrities to grab attention. For instance, cricketer Dinesh Karthik and actor Jacqueline Fernandez are just a few of the faces you might see promoting brands like Parimatch and FairPlay India. These companies are cleverly leveraging the massive social media followings of these celebrities to reach millions, despite ongoing government crackdowns on such ads. Varuni Khosla reports on how betting apps in India are circumventing the legal hurdles with the help of surrogate advertising.
Food prices in India have been persistently high, driven by a combination of climatic events and policy responses. According to RBI data, food inflation has been notably higher in recent years, averaging 6.3% from June 2020 to June 2024, compared to 2.9% in the previous four years. Consumers have felt the pinch of rising prices, but farmers haven't necessarily benefited proportionately. High market prices for crops like pulses and vegetables often result from reduced production due to climate impacts rather than increased farmer income. Rainfall plays a critical role in agricultural output and, consequently, in food prices. The India Meteorological Department's forecast of a wet September could affect the Kharif crops, with potential for both beneficial and adverse impacts depending on the timing and intensity of the rains. Sayantan Bera examines how a bountiful monsoon could result in a fall in prices of food crops.
That’s all for today. Thank you for listening.
We're eagerly looking forward to our next Top of the Morning episode, which will be packed with fresh business news. Until then, have a great day!