Over the past few decades, the role of a Corporate CFO has evolved from merely number crunching responsibilities to a big picture thinker involved in nearly every facet of the company

1. Present Macro-Economic
Conditions
Part 1
Role of CFO in the Economic
Turnaround

2. Restructuring of Corporate Debts -
A Overview

3. CFO
Over the past few decades, the role of a Corporate CFO has evolved from
merely number crunching responsibilities to a big picture thinker involved in
nearly every facet of the company. Today the critical competence, for
effectively managing a CFOs role is to keep a balance between number
orientation and strategic mindset.
In this dynamic environment, it has become necessary for a CFO to understand
how any change in the environment could affect his organization and what
strategies does he need to devise to face the same. A CFO is required to keep
pace with the industry changes and regulations constantly being updated in the
economy.

4. CFO
The major economic concerns for a CFO have been identified as slowdown in
the domestic economy followed by inflation, rupee depreciation and
government’s attitude and ability to bring about economic reforms as these
factors have a direct impact on the financial status of the Company. With India
being one of the emerging economies for Foreign Direct Investment, key
regulations in this sector also play a vital role for them. CFOs have realized that
continuous tapping of economy followed by corporate governance and cost
control are the most critical issues for them.
With the new changes coming up from April 2015 such as Companies Act 2013,
Direct Tax Code (DTC), International Financial Reporting Standards (IFRS),
General Anti Avoidance Rule (GAAR), Land Acquisition Reforms etc. the roles of
CFOs will be affected in many different ways.

5. Economic Turn-around
India’s economy has grown very rapidly in recent years. Since 1991 it has been
among the top 10% of the world’s countries in terms of economic growth. The
Indian economy operates on a delicate balance of state intervention and free
market principles. The primary challenge for India is to sustain this growth while
spreading its benefits more widely. This requires continuous effort as
international experience shows that growth slows down unless reforms are
pushed through when growth is high.

6. India’s GDP Growth Rate
By 2035 the third largest economy of the world in terms of purchasing power
India would be the third largest economy of the world after US and China
overall, as predicted by Goldman Sachs, the Global Investment Bank1 This
booming economy of today has to still pass through many phases before it can
achieve the current milestone of 9 per cent Gross Domestic Product , GDP as set
by Indian Government.
India’s economic growth was at its highest at 9.6 per cent during Financial Year,
FY 06-07 followed by marginal decline at 9.3 per cent in the subsequent year . It
will grow to 60 per cent of the size of the US economy.

7. India’s GDP Growth Rate
Although, India's GDP grew at 8.9 per cent in FY 10–11 post the Economic
Recession of FY 08-09 the tenth largest Economy in terms of Nominal GDP has
been experiencing downward trend in the GDP growth rate over the years.
GDP growth rose marginally to 4.8 per cent during the quarter through Mar
2013, from about 4.7 per cent in the previous quarter recording lowest at 4.5
per cent in the FY 12-13. The projected GDP for the FY 13-14 is estimated to be
at 4.9 per cent increasing marginally by 0.4 per cent.

9. India’s GDP Growth Rate
Gradual economic recovery is expected in FY 14-15. The World Bank
forecasted a 6.7 per cent growth rate for India by next fiscal as exports and
private investment are projected to strengthen and provide a boost to
growth. However as per RBI, GDP for FY14 will marginally fall short of 5 per
cent and the growth in FY 14-15 is likely to be between 5 per cent and 6 per
cent.
India’s economy is the third largest economy in the world in terms of GDP
lying ahead of developed nations like Germany, Japan and Russia.

10. India’s Inflation Trend
The wholesale inflation declined to a five-month low in Dec 2013 on lower
food inflation. WPI-based inflation stood at 6.16 per cent from 7.52 per cent a
month ago. This was the first time since May 2013 that headline inflation has
declined from the previous month. The index for Oct 2013 was revised
upwards to 7.24 per cent from the earlier reading of 7 per cent. Primary
article inflation decreased to 10.78 per cent y-o-y from 15.92 per cent in Nov
2013. Food prices were at 13.68 per cent y-o-y last month, lower than an
annual rise of 19.93 per cent in Nov 2013. Fuel group prices declined to 10.98
per cent in Dec 2013 from 11.08 per cent in Nov 2013.

11. India’s Inflation Trend
While manufactured products inflation remained flat at 2.64 per cent in Dec
2013. The inflation rate in India was recorded at 8.10 percent in Feb 2014.
Inflation Rate in India averaged 9.76 Percent from 2012 until 2014, reaching
an all time high of 11.16 percent in Nov 2013 and a record low of 7.55 percent
in Jan 2012.

12. India’s Inflation Trend
The Patel panel report, released on Jan 21, 2014 indicates a "glide path" for
disinflation, with two targets. Inflation based on the consumer price index
(CPI) should fall to below 8 per cent by Jan 2015 and below 6 per cent by Jan
2016. (CPI inflation was 9.87 per cent in Dec 2013 while inflation based on the
wholesale price index, or WPI, was 6.2 percent.

13. THANK YOU
Email: jyoti.gadia@resurgentindia.com Call Us: +91 124 4754550
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