The Indian Economy, the Government, the public at large and specially the people who are in industry, manufacturing sector, service sector or any other arena of business activity , all are deeply concerned with poor growth rate of manufacturing sector during last 2 to 3 years and specially in 2012-13.
Atmanirbhar Bharat Stimulus decoded for Startups3one4 Capital
ย
3one4 Capital is happy to help Indiaโs startups decode the โAtmanirbhar Bharatโ stimulus package. The scope of this note is limited to general areas of business and for measures that would be directly applicable to a majority of the portfolio companies. All founders are encouraged to go through the presentations for additional details. For specific measures for certain industries (agriculture, NBFCs, etc), kindly consult the presentation or reach out to the 3one4 Capital team. We are here to help. If you have any queries, reach us at hello@3one4capital.com
India - Reflections on the Economy, Employment, Budgets, and Taxation3one4 Capital
ย
Version: February 2020
Authored By: Mr. T.V. Mohandas Pai, Siddarth Pai, Nisha Holla, and Yash Baid
Powered By: 3one4 Capital Research Lab
A compilation of opinions, research, analysis on India's Economy, Employment, Budget, and Taxation
The Union Budget was presented on 28th February, 2013 in the Parliament. It was being touted as a good mix of growth and reform. The major challenges outlined by the Economic Survey, RBI as well as by the FM were in respect of considerably reduced estimated growth of GDP, increase in fiscal deficit, mounting current account deficit and high inflation rate.
Atmanirbhar Bharat Stimulus decoded for Startups3one4 Capital
ย
3one4 Capital is happy to help Indiaโs startups decode the โAtmanirbhar Bharatโ stimulus package. The scope of this note is limited to general areas of business and for measures that would be directly applicable to a majority of the portfolio companies. All founders are encouraged to go through the presentations for additional details. For specific measures for certain industries (agriculture, NBFCs, etc), kindly consult the presentation or reach out to the 3one4 Capital team. We are here to help. If you have any queries, reach us at hello@3one4capital.com
India - Reflections on the Economy, Employment, Budgets, and Taxation3one4 Capital
ย
Version: February 2020
Authored By: Mr. T.V. Mohandas Pai, Siddarth Pai, Nisha Holla, and Yash Baid
Powered By: 3one4 Capital Research Lab
A compilation of opinions, research, analysis on India's Economy, Employment, Budget, and Taxation
The Union Budget was presented on 28th February, 2013 in the Parliament. It was being touted as a good mix of growth and reform. The major challenges outlined by the Economic Survey, RBI as well as by the FM were in respect of considerably reduced estimated growth of GDP, increase in fiscal deficit, mounting current account deficit and high inflation rate.
Rbi in need to act efficiently, effectively and pragmaticallyAICAS
ย
RBI has been among the best regulators in the world, managing the financial markets and various other important aspects of the Indian economy with a visionary, practical, positive and dynamic approach during more than last 5 decades.
The Case for Increasing FDI Caps in Insurance
The history of Indiaโs political economy is replete with missed opportunities. The approach to growth and investment has been often stranded in the many romantic notions of selfreliance and what constitutes national interest. In every
decade since Independence, the approach to foreign direct investment has been influenced by a mistrust triggered by a colonial hangover. Every time India has opened its doors โ or windows if you please โ to foreign investment, it has been characterised by gradualism in the wake of much opposition. The debates around opening or expanding FDI are similar โ as it was when telecom or banking opened up for foreign investment. What is important to recognise is that every such initiative has been beneficial, delivering greater common good.
Higher economic growth is driven by competition and consumer choice. Competition drives efficiency and efficiency drives growth. This is true of every country that has done well economically. It is also true of India since 1991, in segments where competition has been introduced. Any attempt to artificially introduce protection always has costs. Inefficient producers are protected, but at the expense of consumers. Consumers suffer from higher prices,bad service and limited choice. This is straightforward under-graduate economic theory. The gains to inefficient producers are more than neutralized by losses to consumers, leading to an overall deadweight welfare loss to the country.
In this argument, the colour of the competition, whether it is domestic or foreign, does not matter. In addition, there is the macroeconomic argument about a current account deficit having to be met through capital account inflows and non-debt-creating FDI inflows are preferable to debt-creating capital inflows. While these broad arguments about competition and FDI are accepted, the question to ask is, why should the insurance sector not be subject to these compelling arguments? Is there anything special about insurance that rational arguments should not be applied to
this sector? In every sector where India has opened up to FDI, be it manufacturing or be it services, two propositions are empirically evident. First, liberalization helps consumers. Second, fears about inefficient producers being eliminated are also vastly exaggerated.
Instead, producers of goods and services adapt and survive, based on access to capital, technology, knowhow, improved management practices and customer orientation. Therefore, protection not only harms the cause of consumers, it also harms the cause of producers. There is no reason why insurance should be treated differently. And economic logic and rationale should not be conditional on whether one is within the government or is in opposition.
Step by step guide to set up manufacturing in india (1)Ashish vishal
ย
India is increasingly becoming the preferred location for businesses looking to set up a strong business f oothold, especially in the Asia-Pacific region. https://www.rickychopra.co/
Stalling Investments in Infrastructure and the Expanding Infra Debt Burden in...Dharish David
ย
Infrastructure investments have recently been stalling in India, this has been mainly because the companies operating in the infra space have relied excessively on debt financing. With PPP projects peaking in 2010, there has been a steady decline in private sector investments in infrastructure, as companies struggle with higher debt loads. The high financial leverage of these companies have also put pressure on public sector banks that are reaching their exposure limits, with rising NPAs and stressed loans. The government is urgently trying to revive investments in infrastructure to sustain economic growth, by removing regulatory hurdles and providing opportunities for refinancing, while also cleaning up the banking system.
The general public and the society including top bureaucrats, politicians, media personnel, social activists, thinkers, intellectuals and policy makers and those who determine the future directions of the society and the economy expect the auditing profession to perform the roles of a watchdog who can monitor the auditee entity comprehensively to ensure that interest of owners, minority shareholders, investors, bankers, government, regulators, suppliers, customers and other stake holders are fully protected. Most importantly interest of the auditee entity are preserved and various financial and operational decisions taken by the management at various levels were in the interest of the company and were within the policy framework laid down by the Board.
Rbi in need to act efficiently, effectively and pragmaticallyNeha Sharma
ย
RBI has been among the best regulators in the world, managing the financial markets and various other important aspects of the Indian economy with a visionary, practical, positive and dynamic approach during more than last 5 decades.
Our Honorable Chief Minister of Delhi, announced a special seven day drive of removing Malba, dust and garbage in case he receives photographs through a special mobile application. Huge amounts were spent on the entire exercise specially on advertisement. Delhi did not see any result and the outcome couldn't be measured, in the absence of accounting, Management Information System, proper checks and control and no provision for monitoring of outcome.
Rbi in need to act efficiently, effectively and pragmaticallyAICAS
ย
RBI has been among the best regulators in the world, managing the financial markets and various other important aspects of the Indian economy with a visionary, practical, positive and dynamic approach during more than last 5 decades.
The Case for Increasing FDI Caps in Insurance
The history of Indiaโs political economy is replete with missed opportunities. The approach to growth and investment has been often stranded in the many romantic notions of selfreliance and what constitutes national interest. In every
decade since Independence, the approach to foreign direct investment has been influenced by a mistrust triggered by a colonial hangover. Every time India has opened its doors โ or windows if you please โ to foreign investment, it has been characterised by gradualism in the wake of much opposition. The debates around opening or expanding FDI are similar โ as it was when telecom or banking opened up for foreign investment. What is important to recognise is that every such initiative has been beneficial, delivering greater common good.
Higher economic growth is driven by competition and consumer choice. Competition drives efficiency and efficiency drives growth. This is true of every country that has done well economically. It is also true of India since 1991, in segments where competition has been introduced. Any attempt to artificially introduce protection always has costs. Inefficient producers are protected, but at the expense of consumers. Consumers suffer from higher prices,bad service and limited choice. This is straightforward under-graduate economic theory. The gains to inefficient producers are more than neutralized by losses to consumers, leading to an overall deadweight welfare loss to the country.
In this argument, the colour of the competition, whether it is domestic or foreign, does not matter. In addition, there is the macroeconomic argument about a current account deficit having to be met through capital account inflows and non-debt-creating FDI inflows are preferable to debt-creating capital inflows. While these broad arguments about competition and FDI are accepted, the question to ask is, why should the insurance sector not be subject to these compelling arguments? Is there anything special about insurance that rational arguments should not be applied to
this sector? In every sector where India has opened up to FDI, be it manufacturing or be it services, two propositions are empirically evident. First, liberalization helps consumers. Second, fears about inefficient producers being eliminated are also vastly exaggerated.
Instead, producers of goods and services adapt and survive, based on access to capital, technology, knowhow, improved management practices and customer orientation. Therefore, protection not only harms the cause of consumers, it also harms the cause of producers. There is no reason why insurance should be treated differently. And economic logic and rationale should not be conditional on whether one is within the government or is in opposition.
Step by step guide to set up manufacturing in india (1)Ashish vishal
ย
India is increasingly becoming the preferred location for businesses looking to set up a strong business f oothold, especially in the Asia-Pacific region. https://www.rickychopra.co/
Stalling Investments in Infrastructure and the Expanding Infra Debt Burden in...Dharish David
ย
Infrastructure investments have recently been stalling in India, this has been mainly because the companies operating in the infra space have relied excessively on debt financing. With PPP projects peaking in 2010, there has been a steady decline in private sector investments in infrastructure, as companies struggle with higher debt loads. The high financial leverage of these companies have also put pressure on public sector banks that are reaching their exposure limits, with rising NPAs and stressed loans. The government is urgently trying to revive investments in infrastructure to sustain economic growth, by removing regulatory hurdles and providing opportunities for refinancing, while also cleaning up the banking system.
The general public and the society including top bureaucrats, politicians, media personnel, social activists, thinkers, intellectuals and policy makers and those who determine the future directions of the society and the economy expect the auditing profession to perform the roles of a watchdog who can monitor the auditee entity comprehensively to ensure that interest of owners, minority shareholders, investors, bankers, government, regulators, suppliers, customers and other stake holders are fully protected. Most importantly interest of the auditee entity are preserved and various financial and operational decisions taken by the management at various levels were in the interest of the company and were within the policy framework laid down by the Board.
Rbi in need to act efficiently, effectively and pragmaticallyNeha Sharma
ย
RBI has been among the best regulators in the world, managing the financial markets and various other important aspects of the Indian economy with a visionary, practical, positive and dynamic approach during more than last 5 decades.
Our Honorable Chief Minister of Delhi, announced a special seven day drive of removing Malba, dust and garbage in case he receives photographs through a special mobile application. Huge amounts were spent on the entire exercise specially on advertisement. Delhi did not see any result and the outcome couldn't be measured, in the absence of accounting, Management Information System, proper checks and control and no provision for monitoring of outcome.
The Delhi high court, in a leading judgement delivered on 3rd June, 2016, has declared service tax audit being conducted by Central Excise and Service tax department as ultra virus, in the matter of Mega Cabs Vs UOI. The matter was argued by Mr. J.K. Mittal, FCA as advocate of the petitioner.
The BJP Government is on the verge of completing a year and has now stabilised. Major economic initiatives and actions are emerging for a high growth oriented economy.
FINANCE BILL 2012 โ MAJOR ISSUES AND CHALLENGESNeha Sharma
ย
The Finance Bill 2012 was presented in the Lok Sabha recently and is under consideration of the Parliament. A very heated debate is happening on several new provisions and issues arising there from.
Large Bank Borrowers - Are they willful defaultersNeha Sharma
ย
The RBI advisory for mandatory provisions of Non-Performing Assets and inclusion of most of the top borrowers in the list of 150 groups covering lakhs of crores of borrowings has brought to surface a very major issue.
Make in india โ a formidable step in right directionNeha Sharma
ย
Make in India campaign of Prime Minister Narendra Modi has evoked lots of attention all over the world. Prospective investors from China, Japan, USA etc are eagerly watching changes being made in the directions of investment liberalization . There is no doubt that with this PM has taken a major initiative to bring Indian and International Corporate Sector on one platform to aggressively boost industrial production and growth in India.
Se entiende por Atenciรณn Temprana el conjunto de intervenciones, dirigidas a la poblaciรณn infantil de 0-6 aรฑos, a la familia y al entorno, que tienen por objetivo dar respuesta lo mรกs pronto posible a las necesidades transitorias o permanentes que presentan los niรฑos con trastornos en su desarrollo o que tienen el riesgo de padecerlos.
INDIAN ECONOMY LOOKING FOR DIRECTION FOR INDIA TO SHINE AGAINNeha Sharma
ย
The Indian economy is in the threshold of a big leap towards India shining once again, but the main stumbling block being a sense of confusion about government policies, scarcity of low cost adequate money for funding further investments and most importantly India Inc. awaiting for specific policy decisions and creative actions in the areas which has been adversely impacted due to lack of policy initiative.
Companies Act 2013 and the draft Rules towards better corporate GovernanceNeha Sharma
ย
The Companies Act 2013 has already been passed by the Parliament and has also received the assent of the President. The government is expected to announce the date from which the specific section of the new Act will come in force.
FALL IN RUPEE - A MAJOR CONCERN FOR THE ECONOMYNeha Sharma
ย
The recent fall of the Indian rupee visร -vis US Dollar and other major currencies have caused serious concern in the business, profession and Indian intellectuals. The fall of Indian rupee indicate serious inherent weakness of the Indian economy and in spite of some arrests of the inflationary tendency the overall outlook is very weak. Some major indicators include:
Election in 4 States: Expectations from the GovernmentNeha Sharma
ย
The Indian democracy is in an active mode in the backdrop of NovemberDecember Elections in 4 important States. The performance of the State Government as well as of the Central Government is under active analysis. The national economic and political scenario will have a major bearing on the voting pattern.
India Inc. endorses Governmentโs Speed of Decision making and Implementation Agenda. Sumit Mazumder, President, CII, addressed CII's first Press Conference on its National Agenda 2015-16. Since coming to power in May 2014, the new government has adopted several measures to generate positive sentiment about the Indian economy. CIIโs theme for the year is to Build India: Invest in Development. This would involve CIIโs engagement in four broad areas: promoting growth and competitiveness, developing human capital, promoting infrastructure investments encouraging social development. CII is involved in three national missions โ on smart cities, on digital India and on Sanitation in schools. CII is working with central, state and local governments for the successful implementation of these missions.
Ease of doing business challenges persistingNeha Sharma
ย
The new government has been brought to power by electorate of our nation along with large expectations by industry, businesses and professions and other stakeholders of the Indian economy.
The Indian profession of Chartered Accountants has in recent past faced a large number of challenges including aspersions on their integrity and independence arising out of certain large scale financial frauds and manipulation of financial statements by banks, investment banks and large companies outside India including companies like Satyam in India. The Institute of Chartered Accountants of India have severely punished those who were found guilty in various financial frauds and even removed certain chartered accountants found guilty for Satyam scam for their life from the membership of the Institute. Most of these corporate failures did not had any Indian origin CA firm as their Auditors.
Impact of COVID-19 on Indian Venture Capital IndustrySam Ghosh
ย
Given considerable ambiguity around changing economic and industrial landscapes, most VCs may refrain from investment in companies other than their own portfolio companies. As many sectors are being disrupted significantly by the pandemic, many portfolio companies may need funding just to keep afloat. Given India focused VCs ended 2019 with a record amount of dry powder, they are positioned well to increase their stake in existing portfolio companies through additional equity infusion at attractive valuations.
Early-stage companies will have a hard time raising funds in the coming few quarters as VCs likely to prioritise strengthening their own portfolio companies and companies with proven product-market-fit and revenue models. At the same time, late-stage startups may reap the benefits of their user base and move to develop revenue sources.
Investment instruments and terms may become more and more conservative both in terms of economics and control. We can expect stricter liquidity preferences, stricter vesting schedules, and protective provisions.
Venture debt is becoming popular as startups try to avoid dilution at unfavourable prices and terms.
The current situation creates unfavourable circumstances for VC exits. Venture Funds may like to delay exits if possible to avoid selling at deeply discounted valuations. This may result in a longer holding period and thus lower IRR. Funds at the tail end of their lives may be forced to offer exits to their limited partners (LPs). This may lead to underperformance and/or increased sales by the LPs to secondary funds. The pandemic has caused rapid digitisation of various sectors. Established offline players may look for acquisition to grow their digital capabilities. This may bring strategic deal opportunities for digital startups and exit opportunities for VC firms.
Fundraising activity is expected to be slow in the coming quarters given fund managers may want to limit their exposure to risky investments in the current economic scenario. The pandemic has caused and going to cause a correction in various asset prices from public equity, real estate, and commodities. Restructuring of portfolios likely to further discourage fund managers from investing in venture funds.
In this tough fundraising scenario, tried and tested fund managers will have a significant advantage over new fund managers.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
ย
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
PAMS Professional Group Monthly NewsLetter -April 2020PAMS
ย
Greeting From PAMS Professional Group
Dear Reader,
As you will be goinf through our monthly, update,the April'20 News letter, We take this opportunity to wish you all luck and a safe battle againts COVI-19, the Global pandemic that has affected routine life both in personal and businesss spheres. We take a review of its impact on our well being and present before your review and to revert on them.
India's Union Budget for FY20 is a hurriedly assembled cocktail of Gandhi, Marx and Adam Smith. All previous attempts to make such a cocktail have ended in disaster. If we do succeed this time, it will be miraculous.
India's Union Budget for FY20 is a half prepared cocktail of Gandhi, Marx and Adam Smith. Not many previous attempts to make such cocktail have succeeded in past
Similar to INDIAN MANUFACTURING SECTOR NEED FOR A POSITIVE ENVIRONMENT FOR GROWTH (20)
RBI AS WELL AS GOVERNMENT OF INDIA MUST RECONSIDER RELAXATION ALLOWED RECENTL...Neha Sharma
ย
The RBI had set up a committee to review various important aspects of audit of public sector banks. The committee, despite serious objections by the Central Council of the Institute of Chartered Accountants of India, gave its interim report recently which inter alia include exemption from audit of branches having Rs. 100 crore advances for large banks and Rs. 50 crore advances for mid size banks. On the basis of the report, RBI has recommended that all the branches of public sector banks having less than Rs. 20 crore advances should be exempted from audit, except once in 5 years.
INDIAN ECONOMY: CHALLENGES AND EXPECTATIONSNeha Sharma
ย
The Reserve Bank of India has recently released a small dose of liquidity by reducing Cash Reserve Ratio (CRR) by 0.5% for the commercial banks. Government borrowings have swallowed significant resources from the banking sector in recent months. The Liquidity with banking sector is still a major issue.
NATION UNDER ANGUISH - ACRIMONIOUS ENVIRONMENT Neha Sharma
ย
The recent announcements of election results are historic and has brought to light serious concerns of the nation, the economy, society and most importantly public at large about the current political as well as economic state of affairs. This is very clear from active involvement and a record turnout of voters for the election.
COMPANIES ACT, 2013 - CORPORATE GOVERNANCE IN NEW DIRECTIONSNeha Sharma
ย
The Government of India has already notified 98 sections of the new Companies Act and has also announced draft rules in 1st phase as well as in 2nd phase on most of the chapters of Companies Act, 2013. It may be an interesting debate to examine certain issues having wider implications.
GOVERNMENT SHOULD DESIST FROM INTERFERING IN THE CA PROFESSIONNeha Sharma
ย
Over the last few years, the Government is bent upon interfering in the affairs of the CA profession being regulated by the Institute of Chartered Accountants of India, a body set up by an Act of the Parliament. Satyam episode is being cited as the example for mismanagement and lack of regulation.
Young Chartered Accountants - New Age CAs, A New Age PowerNeha Sharma
ย
The profession of chartered accountants has enrolled a large number of students in last 7 years and accordingly the number of young bright students who are qualifying as chartered accountants has also grown significantly. This is being seen as a major challenge for the entire profession. We perceive this as a major opportunity not only for the profession, the young chartered accountants, and young C.A. students but also for the entire nation - our motherland INDIA.
INCOME DECLARATION SCHEME A time to come cleanNeha Sharma
ย
The IDS scheme announced by the government is open till 30th September, 2016. It is an important opportunity and the government has committed to not to seek any details or source of money earned and assets created once disclosed in terms of the scheme.
FEMALE SECURITY - A MATTER OF MAJOR CONCERNNeha Sharma
ย
The recent incidents in Delhi followed by the mass protests at India Gate and all across the nation have brought to light a major threat to safety and security of females in the country. The profession of Chartered Accountancy consists of a substantial number of female members and about 50% CA students are also female.
At the outset, the new BJP led NDA Government is to be congratulated for winning the General Election with a thumping majority. The agenda of the BJP government in the shape of their visionary Election Manifesto will lead the direction to a Growth oriented, people friendly, consensus driven policies.
Indian economy towards growth momentum strategic moves neededNeha Sharma
ย
In a recent international survey Indian economy has been rated as the 3rd largest economy of the world, after USA and China, on the basis of Purchase Power Parity (PPP). IMF has also projected a smart recovery of growth rate of Indian GDP to around 5.5% to 6% in next 2 years.
Indian economy towards growth momentum strategic moves neededNeha Sharma
ย
In a recent international survey Indian economy has been rated as the 3rd largest economy of the world, after USA and China, on the basis of Purchase Power Parity (PPP). IMF has also projected a smart recovery of growth rate of Indian GDP to around 5.5% to 6% in next 2 years.
The general election to Lok Sabha is the most important democratic process in the Indian Constitutional Framework. Current elections have attracted a huge turnout of the voters, clearly indicating to the political leadership that India need change and Indian democracy, economy and expectations of public and society is under transformation.
National General Election โ Our vote to be decisiveNeha Sharma
ย
The general elections have been announced and within 3 to 4 weeks voting process will commence. It is very important for the Chartered Accountants fraternity to actively participate in the election process not only by casting their votes but also actively participating in shaping the thought process of the society.
NON PERFORMING ASSETS โ NEED FOR PRAGMATIC & PRACTICAL REGULATORY FRAMEWORK Neha Sharma
ย
The Reserve Bank of India, Indian Banks Association, almost all Public Sector Banks and the Indian businesses are deeply concerned about significant rise in nonperforming assets during last one year. The Indian economy has been passing through unprecedented turbulent times. Many important sectors of the economy have been adversely affected.
The recent statement of Shri Narendra Modi, the Prime Ministerial Candidate of BJP that the BJP is very seriously examining to bring in a more friendly tax structure is heartily welcome. It is important to analyze the current issues and options available before the policy makers to initiate a meaningful public debate.
ICAI Elections -Your Vote will make the DifferenceNeha Sharma
ย
The most crucial time for the profession of CAs i.e. 3 yearly elections of the Institute are scheduled for December 4-5, 2015. How we exercise our vote will decide future of each one of us. The role being played by the Elected Central Council & the Regional Council is very crucial and it is important to understand while voting that We need a leadership which takes the profession in a right Direction, new and larger professional opportunities are harnessed nationally as well as internationally,we meet various challenges as a profession and all members are effectively, efficiently and respectfully deliver professional services and add a highly acclaimed value to the corporate, while being in employment.
The issues of proper Financial Management and Corporate Governance have taken a centre stage. The Public Sector Banks as well as Private Sector Banks are witnessing acute rise in nonperforming assets, moving up to 4.6% in March, 2015, whereas stressed advances have increased to 11.1% of the total advance, from 8% about 2 year ago. The major reasons as per a research of a large sample are as follows:
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
ย
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.๐คฏ
We will dig deeper into:
1. How to capture video testimonials that convert from your audience ๐ฅ
2. How to leverage your testimonials to boost your sales ๐ฒ
3. How you can capture more CRM data to understand your audience better through video testimonials. ๐
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
ย
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
ย
Discover the innovative and creative projects that highlight my journey throughย Full Sail University. Below, youโll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
ย
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Improving profitability for small businessBen Wann
ย
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
ย
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Memorandum Of Association Constitution of Company.pptseri bangash
ย
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
ย
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
"๐ฉ๐ฌ๐ฎ๐ผ๐ต ๐พ๐ฐ๐ป๐ฏ ๐ป๐ฑ ๐ฐ๐บ ๐ฏ๐จ๐ณ๐ญ ๐ซ๐ถ๐ต๐ฌ"
๐๐ ๐๐จ๐ฆ๐ฌ (๐๐ ๐๐จ๐ฆ๐ฆ๐ฎ๐ง๐ข๐๐๐ญ๐ข๐จ๐ง๐ฌ) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
๐๐ ๐๐จ๐ฆ๐ฌ provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
โญ ๐ ๐๐๐ญ๐ฎ๐ซ๐๐ ๐ฉ๐ซ๐จ๐ฃ๐๐๐ญ๐ฌ:
โข 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
โข SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
โขFreenBecky 1st Fan Meeting in Vietnam
โขCHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
โข WOW K-Music Festival 2023
โข Winner [CROSS] Tour in HCM
โข Super Show 9 in HCM with Super Junior
โข HCMC - Gyeongsangbuk-do Culture and Tourism Festival
โข Korean Vietnam Partnership - Fair with LG
โข Korean President visits Samsung Electronics R&D Center
โข Vietnam Food Expo with Lotte Wellfood
"๐๐ฏ๐๐ซ๐ฒ ๐๐ฏ๐๐ง๐ญ ๐ข๐ฌ ๐ ๐ฌ๐ญ๐จ๐ซ๐ฒ, ๐ ๐ฌ๐ฉ๐๐๐ข๐๐ฅ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ. ๐๐ ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐ ๐ญ๐ก๐๐ญ ๐ฌ๐ก๐จ๐ซ๐ญ๐ฅ๐ฒ ๐ฒ๐จ๐ฎ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ ๐ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐จ๐ฎ๐ซ ๐ฌ๐ญ๐จ๐ซ๐ข๐๐ฌ."
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
ย
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Business Valuation Principles for EntrepreneursBen Wann
ย
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
INDIAN MANUFACTURING SECTOR NEED FOR A POSITIVE ENVIRONMENT FOR GROWTH
1. Volume XXIV, No. 07, July, 2013
The Indian Economy, the Government,
the public at large and specially the
people who are in industry,
manufacturing sector, service sector or
any other arena of business activity ,
all are deeply concerned with poor
growth rate of manufacturing sector
during last 2 to 3 years and specially in
2012-13.
The silver lining is the fact that the Indian industry and
businesses have matured in terms of commitment and
capability to compete in terms of quality, size, new products
and innovation during last 2 decades. The large corporate
sectors have done extremely well in last 2 decades in terms of
growth and in terms of financial resources except the recent
issues off slow growth in a large number of areas. Large
industrialists and entrepreneurs are also not coming forward
to undertake large projects in the manufacturing sector.
An interaction with top management of number of banks,
during last 6 months has provided a very serious feedback
that there are no significant or material credit proposals being
received by them for setting up or diversification or expansion
of manufacturing units. Most of the proposals being received
by the banks relates to real estate developments, housing,
highway construction and power sector. Even the power sector
and highway projects are moving very slow and a large number
of these projects are stand still for policy constraint or lack of
coal linkage or lack of clarity about recoverability of power
sales revenue or due to issues on toll collection and similar
other matters. The financial closure in case of even
infrastructure projects are becoming difficult due to
uncertainities.
The small and medium enterprises (SME Segment ) of
manufacturing sector have still deeper issues. There is a lot of
lip service that the policy makers have serious will to promote
INDIAN MANUFACTURING SECTOR -
NEED FOR A POSITIVE ENVIRONMENT FOR GROWTH
Contd............... on pg 3
CAVinod Jain*
* Mr. Vinod Jain, FCA, FCS, FICWA, LL.B., DISA (ICA), Chairman, INMACS and Vinod Kumar & Associates. vinodjain@inmacs.com, vinodjainca@gmail.com, +91 9811040004
EDITORIAL
the SME . The policies are also being made to this effect. The
implementation issues are, however, very serious, to discuss
some of them:
Land: Availability of reasonable cost land with adequate
infrastructure facilities is a big issue. It is important to
develop industrial estates in various areas of the country
and even barren land can be used by State Government
Agencies or under PPP model to develop industrial estates
with developed roads, sewerage , waste disposal, water
and other facilities which are important to set up
manufacturing units.
Power:Availability of uninterrupted low cost power has to
be ensured.
Man power : Availability of trained manpower with
adequate technical education and practical exposure can
create a strong backbone for growth of industries and will
also provide large scale employment.
Finance: SME sector also suffer from lack of financial
resources. It is important to provide equity support by
banks and other financial institutions and also at the
instance of the government Institutions. Even the term
loan and working capital facility are available only against
collateral security except for very small requirements. The
government need to structure a scheme to insure credit
risk of the financing institutions up to a loan amount of
` 5 crore provided to genuine proposals of SME sector,
which can provide a big imputes to growth. The increasing
requirement of retail sector can also met by SME in a more
effective manner.
Low cost funds: The SME sector need low cost funding at
less than 10% per annum. In the present circumstances
the limited money which is available to small scale and
medium enterprises is costing 14% to 24% per annum. It is
important to make the industrial units economically viable
and competitive so that they can create large competitive
2. 2 THE CHARTERED ACCOUNTANT WORLD โ July 2013
LATEST IN FINANCE
1.0 NBFC not to be partners in LLP, AOC &
Partnership Firms
The Reserve Bank of India (RBI) has said that
Non Banking Financial Companies (NBFCs) are
prohibited from contributing capital to any
partnership firm or to be partners in partnership
firms. Partnership firms will also include Limited
Liability Partnerships (LLPs) and Association of
Persons (AOPs). In cases of existing investments,
NBFCs are advised to seek early retirement from
the partnership firms/LLP/AOP.
RBI/2012-13/526 dated 11th June 2013, www.rbi.org.in
2.0 Guidelines on raising money through Private
Placement by NBFCs
The Reserve Bank of India (RBI) has issued
guidelines on private placement by NBFCs. The
details are as follows:-
The offer document for private placement
should be issued within a maximum period of
6 months from the date of the Board Resolution
authorizing the issue.
The offer document may be printed or typed
"For Private Circulation Only".
An NBFC shall only issue debentures for
deployment of funds on its own balance sheet
and not to facilitate resource requests of group
entities/ parent company / associates.
Private placement by all NBFCs shall be
restricted to not more than 49 investors,
identified upfront by the NBFC.
The minimum subscription amount for a single
investor shall be ` 25 lakh and in multiples of
`10 lakh thereafter.
There should be a minimum time gap of at least
six months between two private placements.
An NBFC shall not extend loans against the
security of its own debentures.
RBI/2012-13/560 dated 27th June 2013, www.rbi.org.in
3.0 Regulator warns Aircel, Tata Tele, RCom
against unsolicited SMS
The Telecom regulatory Authority of India
(TRAI) has introduced a new law to curb the
menace of unwanted calls. Under this new rule,
telephone connection given to unauthorized
telemarketers will be disconnected immediately
on first complaint and they will be blacklisted for
2 years. During these 2 years, no phone company
can offer a connection to the blacklisted individual
or entity. Earlier, the illegal telemarketers were
issued warnings & penalised before disconnection.
How to complaint against unsolicited SMS
For making a complaint through SMS, a
customer has to SMS "the unsolicited commercial
communication, XXXโฆ dd/mm/yy" to 1909.
Where 'XXXโฆ' is the ten-digit telephone number
or header of the SMS, from which the unsolicited
message has originated.
The telephone number or header and the date of
receipt of the unsolicited commercial SMS may
be appended with such SMS, while forwarding
to 1909, with or without space after comma.
4.0 Fitch revises India's rating outlook to 'stable'
Almost a year after downgrading India's credit
rating outlook to 'negative', global rating agency
Fitch has again given it a 'stable' rating. This
upward revision in the outlook is mainly because
of a lower-than-estimated fiscal deficit and some
reform initiatives by the Government. The current
rating is just one level above 'junk bond' status.
5.0 Apollo Tyres, India to buy Cooper Tire, US
India's second-largest tyre manufacturer Apollo
Tyres has acquired US-based Cooper Tire &
Rubber Company in an ` 14,500-crore all-cash
deal.At $2.5 billion, it is one of the largest overseas
acquisitions by an Indian company. Apollo will
vault from 16th to 7th position in the global tyre
manufacturing rankings, and get deeper market
access in the US, Europe and China.
Congratulations!Congratulations!Congratulations!Congratulations!Congratulations!
LATEST IN FINANCE
Onkar Singh Kanwar
Chairman, Apollo Tyres
Neeraj Kanwar
VCMD, Apollo Tyres
3. 3A JOURNAL OF ALL INDIA CHARTERED ACCOUNTANTSโ SOCIETY
EDITORIAL / LATEST IN FINANCE
6.0 AICTE approval is not necessary for MBA
programmes: SC
The top court was of the view that approval from
the technical education regulator,All India Council
for Technical Education (AICTE), was not
required for MBA programmes offered by private
institutions.
The Supreme Court had said that AICTE's role
vis-a-vis universities was "only advisory,
recommendatory and one of providing guidance,
and has no authority empowering it to issue or
enforce any sanctions by itself". Citing its order
in the Bharathidasan University and Parshvanath
Charitable Trust case, the court said that AICTE
norms could be applied through the University
Grants Commision (UGC).As a result, theAICTE
cannot directly "control" or "supervise" these
affiliated colleges.
7.0 Govt to Step up speed of reforms after Gas
Price Hike
After the increment in gas prices, the Government
is set to issue further reforms in various sectors
as under:-
Higher FDI limits in many sectors
Authority for railway tariffs
Regulator for roads sector
New instruments to attract sovereign wealth
funds
Allocation for coal blocks & natural gas
Implementation of fertilizer policy
The following actions has been implemented :-
Sharp rise in price for gas produced
domestically
Independent regulator for the coal sector
Exit facility for road project developers
8.0 India may challenge US Visa Rules
The government has told the US that the latter's
under-discussion legislation to change the rules
on H-1B and L-1 work visas are against World
Trade Organization (WTO) rules. It has warned
that if the law is passed in its present format, India
manufacturing bases and can also develop as ancillary
units, to support large projects.
Government initiative and monitoring: The State
Governments and Chief Ministers can take a lead to
attract industrial activities in their respective States in
a completely planned manner. The central government
and the entire framework of the financial sector can
provide necessary facilities and financial supports.
Tax Laws: Taxation Laws are another major dampener.
It is very important to reduce the rates of indirect taxes
including VAT and Service Tax. The direct tax slabs
also need substantial up-gradation. What is most
important is to create a positive litigation free
environment. The domestic transfer pricing legislation
and several other similar irritants, bureaucratic process
and litigative attitude is largely responsible for a poor
business environment in the country.
The Prime Minister and his team need to fully support
the initiative of the government machinery including
top level bureaucrats at the central level as well as at
the State level to have a long term vision and program
for a big leap in the manufacturing sector. The
procedures need to be cut and a single window
clearance in a time bound manner is needed. The
delegation of powers should be wide with all necessary
positive discretion with officials.
We also need to harness large mineral resources to the
best our advantage in the manufacturing sector by
bringing forth transparent schemes of developing mining
as a backbone to manufacturing. The policy framework
needed to ensure that the businesses are able to have
good value additions to incentivise economic growth.
CAs is partner in Growth: The CA profession can play a
very important role in conceptualizing various new
projects and to promote entrepreneurship in the areas in
which their clients can have special edge. The CA
community is committed to provide all necessary support
for preparation of techno-economic feasibility reports,
resource rising for funding the projects, development of
internal control procedures and systems and empower
the entrepreneur to create necessary organization by
handholding and guiding in planning, organizing,
managing, controlling and implementing new projects,
expansion and diversification. The financial planning to
ensure successful and sustained viability and growth is
the biggest strength of chartered accountants as
practicing professionals as well as part of the
implementation team of the industrial projects.
Contd............... from pg 1
INDIAN MANUFACTURING...EDITORIAL
4. 4 THE CHARTERED ACCOUNTANT WORLD โ July 2013
LATEST IN FINANCE / CAPITAL MARKET
CAPITAL MARKET
1.0 SEBI to allow start ups to list shares
Market regulator Securities and Exchange Board
of India (SEBI) decision to allow small and
medium enterprises to list their shares without
an initial public offer has boosted sentiment
across the country's startup ecosystem.
It also exempts them from having to offer 25 of
shareholding to the public through through an
offer document to get listed.
2.0 SEBI considers new norms for foreign
investors
A Securities and Exchange Board of India (SEBI)
panel has recommended waiving the requirement
for Foreign Institutional Invetors (FIIs) to directly
register with the market regulator. According to
the recommendations, FIIs and sub-accounts
would now be able to register themselves and
transact through Designated Depositary
Participants (DPs) whose qualification would be
prescribed by the market regulator.
The panel also wants the merger of existing FIIs,
sub-accounts and qualified foreign investors into
a new investor-class called Foreign Portfolio
Investor (FPI).
3.0 SEBI initiate penalty on promoters of 105 cos
Cracking the whip on the promoters of over 100
private sector companies having failed to attain
minimum 25% public holding, the Securities and
Exchange board of India (SEBI) has ordered
freezing their voting rights and corporate benefits
and barred them from holding any new position
on boards of listed firms. The promoters and
directors of non-compliant companies have also
been barred from dealings in the market and
holding new positions on the boards of listed
entities till the time those companies comply with
the minimum public shareholding requirements.
4.0 SEBI tightens buyback, preferential
allotment norms
The Securities & Exchange Board of India (SEBI)
has said that the mandatory minimum buyback
is now 50 per cent of the offer size, against the
earlier 25 per cent. Companies have to forfeit up
to 2.5 per cent of the money earmarked for the
buyback if they fail to achieve the 50 per cent
mark.
The maximum buyback period has been reduced
from 12 months to six. Companies can neither
raise further capital nor make another buyback
offer for a year.
Shares bought back every month have to be
extinguished by the 15th of the next month. The
last installment should, however, be completed
within seven days of completion of the offer.
5.0 SEBI new norms for listing of preference
shares
The Securities & Exchange Board of India (SEBI)
has said that the listing of privately placed non-
convertible redeemable preference shares would
require a minimum application size of ` 10 lakh
is likely to challenge it at the WTO's dispute panel.
All companies that have 50% or more employees
from outside the US to pay a higher visa fee of
$10,000 for each such staffer, against $4,500 at
present.
9.0 RBI bans gold imports with bank credit
The Reserve Bank of India (RBI) has said that all
letters of credit to be opened by nominated banks,
agencies for import of gold under all categories
will be only on 100% cash margin basis. Further,
all imports of gold will necessarily have to be on
documents against payment basis. Accordingly,
gold imports on documents against acceptance
basis will not be permitted.'
10.0 RBI allows end use for Import of Services
The Reserve Bank of India (RBI) has decided to
include import of services, technical know-how
and payment of license fees as part of import of
capital goods by the companies for the use in the
manufacturing and infrastructure sectors as
permissible end uses of ECBs.
Currently, eligible entities can raise External
Commercial Borrowings (ECBs) for investment
such as import of capital goods, new projects,
modernization /expansion of existing production
units in industrial sector, infrastructure sector and
entities in the service sector
5. 5A JOURNAL OF ALL INDIA CHARTERED ACCOUNTANTSโ SOCIETY
CERTIFICATE COURSECAPITAL MARKET / FEMA
holder(s) under the automatic route for
domestic debt raised through issue of capital
market instruments.
The Reserve Bank of India (RBI) has decided
that credit enhancement can be provided by
eligible non-resident entities to the domestic
debt raised through issue of INR bonds/
debentures by all borrowers eligible to raise
ECB under the automatic route.
The minimum average maturity of the
underlying debt instruments has been reduced
from seven years to three years. Prepayment
and call/put options, however, would not be
permissible for such capital market
instruments up to an average maturity period
of 3 years.
On invocation of such credit enhancement, if
the guarantor meets the liability and if the same
is permissible to be repaid in foreign currency
to the eligible non-resident entity, the all-in-
cost ceilings, as applicable to the relevant
maturity period of the Trade Credit / ECBs as
per extant guidelines, would apply to the
novated loan.
A.P. (DIR Series) Circular No. 120 dated 26th June 2013,
www.rbi.org.in
3.0 No concept of sub-brands under single brand
retail policy
The Department of Industrial Policy & Promotion
(DIPP) has written to the Finance Ministry that
there is no such concept of sub-brands under
the Foreign Direct Investment (FDI) policy in
the sector.
The government is in the process of coming out
with a definition of 'single brand retail' to remove
ambiguities regarding retailing of sub-brands and
labels. Currently, there is no definition of single-
brand retail in the FDI policy. As per the current
policy, products to be sold should be of a 'single
brand' only. According to industry experts, this
policy means multiple brands or sub-brands
owned by the same company can neither be sold
under one roof nor sold by the same firm.
4.0 ````` 8,600-cr notice to Emmar MGF for FEMA
violations
The Enforcement Directorate (ED) has slapped
FEMA
1.0 RBI issues norms on ECB for low cost
affordable house projects
The Reserve bank of India (RBI) has issued
guidelines for External Commercial Borrowings
(ECBs) for the low cost affordable housing
projects. The details are as follows:-
The condition of the minimum Net Owned
Funds (NOFs) of ` 300 crore for the past three
financial years remains unchanged.
The aggregate limit for ECB under the low cost
affordable housing scheme is extended for the
financial years 2013-14 and 2014-15 with a
ceiling of USD 1 billion in each of the two
years, subject to review thereafter.
The ECB availed of by developers and builders
shall be swapped into Rupees for the entire
maturity on fully hedged basis
A.P. (DIR Series) Circular No. 113 dated 24th June 2013,
www.rbi.org.in
2.0 Guidelines for ECB for structured obligations
The Reserve Bank of India (RBI) has issued
guidelines for ECBs for structured obligations.
The details are as under:-
As per the extant guidelines, credit
enhancement is permitted to be provided by
multilateral / regional financial institutions,
Government owned development financial
institutions, direct/indirect foreign equity
for each investor. Besides, the public issuance of
such shares would require minimum three-year
tenure for the instruments and at least a rating of
'AA-' or equivalent investment grade.
6.0 SEBI allows PSUs to sell shares to employees
at discount after OFS
The Securities & Exchange Board of India (SEBI)
has said that employees of public sector
undertakings (PSUs) will now get an option to
subscribe up to 5% of the issue size at a discount
after the completion of disinvestment in the
concerned state-owned company.
PSU will be selling shares to interested employees
at a 5% discount over the last cut-off price in
that OFS.
6. 6 THE CHARTERED ACCOUNTANT WORLD โ July 2013
FEMA / AUDIT
` 8,600-crore show-cause notice on construction
major Emmar MGF Land. It claimed the group
had disclosed to the Reserve Bank of India (RBI)
that it is bringing FDI for developing
construction-related projects but it used the funds
for purchasing farm land, which is a violation of
the banking and FDI regulator.
5.0 Electronic brands find loophole to get around
FDI norms on e-retailing
Electronic brands have found a way to beat the
Foreign Direct Investment rules governing e-
commerce to sell their products online. These
companies are selling their wares through Web
sites created specially for them by Indian
distributors.
6.0 Foreign Investment in G-securities limit
raised
The government has increased the investment limit
of foreign portfolio investors in government bond
by $5 billion to $30 billion.
7.0 DIPP moves to end control of companies via
back door
The Department of Industrial Policy and
Promotion (DIPP) has moved the much-awaited
draft Cabinet note on expanding the definition of
"control" for calculating foreign investment, direct
and indirect, in an Indian company.
The proposal, which has to be cleared by the
Cabinet Committee on EconomicAffairs (CCEA),
has suggested the definition of "control" be
expanded to include the control exercisable
through management and policy decisions,
management rights, and shareholder agreements
of an Indian entity. Currently, a company is
considered "controlled" by resident Indian citizens
if the power to appoint a majority of the directors
on its board is held by Indian companies and
citizens. It was felt this definition was not
comprehensive enough to cover all possible ways
in which "control" was exercised in corporate
entities.
8.0 Panel identifies 9 sectors for mandatory
Indian control
The Arvind Mayaram committee, set up to
liberalise the country's Foreign Direct Investment
AUDIT
1.0 Deferment of applicability of SA-700(Revised)
on Tax Audit Report
The Institute of Chartered Accountants of India
(ICAI) has deferred the applicability of SA-700
(Revised) on the tax audit report under section
44AB of the Income-tax Act, 1961 by one year
till 31st March 2014.
2.0 Audit Report Impact
Five top executives at the Indian unit ofAmerican
company Bunge have resigned amid an internal
audit into possible financial irregularities at the
world's largest oilseeds processor and owner of
domestic edible oils brands Dalda and Amrit.
3.0 Govt to initiate action against erring CAs
The government has said that it will ensure that
all Chartered Accountants found guilty of
wrongdoing in certification of banks' books will
be debarred from taking up further work with
these public sector banks. It will also suggest
action - including suspension/dismissal/fine/action
under criminal laws - against bank officials found
(FDI) policy, has recommended nine sectors be
categorised as those where 'Indian ownership'
and 'control' will be mandatory. These are FM
radio, uplinking news & current affairs, print
media (news & current affairs), commodity
exchanges, stock exchanges along with
depositories and clearing corporation, power
exchanges, petroleum & natural gas refining,
insurance, defence production and private security
agencies.
The committee has suggested FDI be capped at
49 per cent in nine sectors and clearance (except
for defence production and private security
agencies) be through the automatic route. It has
clarified FDI will not include portfolio investments
in two of these sectors - insurance and petroleum
& natural gas refining.
9.0 FCCB buyback, prepayment extended till Dec
The Reserve Bank of India (RBI) has extended
the deadline for buyback and prepayment of
foreign currency convertible debentures (FCCBs)
under the approval route till December this year.
7. 7A JOURNAL OF ALL INDIA CHARTERED ACCOUNTANTSโ SOCIETY
CERTIFICATE COURS / ICAIEAUDIT / INDIRECT TAXATION / DIRECT TAXATION
FINANCIAL INDICATORS
CurrentRate* MonthAgo 3Month 6Month
(in%) (in%) Ago(in%) Ago(in%)
3 Month LIBOR ($) 0.27 0.27 0.28 0.31
3 Month MIBOR (`````) 8.21 8.53 8.79 8.75
SENSEX 19294 19441 18413 19664
NIFTY 5817 5878 5558 5969
CRR 4.00 4.00 4.00 4.25
REPO 7.25 7.25 7.50 8.00
REVERSE REPO 6.25 6.25 6.50 7.00
Gold (per 10 gm) 26103 28011 29230 30797
Silver (per kg) 40174 44162 51775 58128
Crude (USD/bbl) 108.51 103.95 105.79 112.38
Rs. vs USD 60.13 57.78 54.53 54.63
Rs. vs Euro 76.89 76.24 71.33 71.32
Rs. vs 100 Yen 59.76 58.79 55.03 61.99
Rs. vs RMB 9.76 9.50 8.80 8.79
Rs. vs Pound 89.52 89.71 83.59 87.50
MCX Aluminium 105.90 108.85 102.40 113.30
MCX Copper 405.85 408.90 413.20 444.75
*As on 10th July 2013 (Sources: Moneycontrol, NSE, BSE, RBI, MCX)
guilty of rejecting eligible cases and/or granting
debt relief and debt waiver to ineligible farmers
as well as other wrongdoings, including forgery/
tampering of documents.
4.0 Audit firms may be held to be accountable
The ministry of corporate affairs is working to
amend the Chartered Accountants Act, 1949,
which would in cases of any exceptional
negligence' penalize the audit firm in addition to
the individual auditor.
5.0 Legal Audit of title documents in respect of
large value loan accounts
The Reserve Bank of India (RBI) has decided
that the banks should also subject the title deeds
and other documents in respect of all credit
exposures of ` 5 crore and above to periodic
legal audit and re-verification of title deeds with
relevant authorities as part of regular audit exercise
till the loan stands fully repaid.
RBI/2012-13/524 dated 7th June 2013, www.rbi.org.in
DIRECT TAXATION
1.0 Transfer Pricing - R&D Units
The Central Board of Direct Taxes (CBDT) has
now classified the local captive units of MNCs
into entrepreneurial, cost-sharing arrangements
and contract research and development centres.
The new rules list six conditions for an MNC
unit in India to be considered a contract research
centre with insignificant risk on which 'profit split'
method of attributing higher profits is not
applicable.
The major change from the earlier rules is that
an MNC unit need not fulfill all the six conditions
to be eligible for a less stringent tax treatment.
The revised circular has dropped the word
"cumulatively" to clarify that not all the conditions
need not be fulfilled.
2.0 Transfer Pricing - APA
AnAdvance PricingAgreement (APA) is a pact
between a taxpayer and a tax authority on
pricing of future inter-company transactions.
APA provides certainty on pricing and the
methodology for inter-company transactions
and also eliminates double taxation risks
INDIRECTTAXATION
1.0 Service Tax on AC Bar Restaurants & Hotels
is Unconstitutional: Kerala HC
The Kerala High Court has held that the levy of
Service Tax on AC Bar Restaurants and Hotels
providing short term accommodation as
Unconstitutional and beyond the Legislative
Competence of the Parliament. It contends that
the levy by the Central Government transgress
upon the subject matter falling under Entry 54
and Entry 62 respectively of the List II (State
List) of the Seventh Schedule of the Constitution
and therefore beyond the legislative competence
of the Parliament.
2.0 Excise dept slaps Rs 30-cr service tax notice
on Amity
The Directorate General of Central Excise
Intelligence (DGCEI) has served Rs 30-crore
service tax liability show-cause notice to Amity
University's Lucknow campus.
The 25-page notice says the Lucknow campus
of Amity is an "off-campus" centre and not
approved by the University Grants Commission
and hence is "not authorised by law".
8. 8 THE CHARTERED ACCOUNTANT WORLD โ July 2013
Contact details : Dharampal (9013363257) All India Chartered Accountantsโ Society - CFO World 909, Chiranjiv Tower, 43, Nehru Place,
New Delhi-110019. Ph: 26223712, 26228410, 26226933 E-mail:aicas.cfo@gmail.com / cfoworld@gmail.com EDITOR: Pankaj Gupta, LLB, FCS
E-mail: pankajguptafcs@gmail.com PUBLISHED & PRINTED: At New Delhi by Satish Chandra, Administrative Officer, on behalf of All India Chartered
Accountantsโ Society, 4696, Brij Bhawan, 21A, Ansari Road, Darya Ganj, New Delhi-110 002 Phone 23265320, 23288101 E-mail : aicas.cfo@gmail.com
Printed at: EIH Ltd., Unit : Printing Press, No. 7, Sham Nath Marg, Delhi-110054. Views expressed by contributors are their own and the Society does not accept
any responsibility.
If undelivered, please return to :
All India CharteredAccountantsโSociety
4696, Brij Bhawan 21A,Ansari Road,
Darya Ganj, New Delhi-110 002
Date of Printing : 12th
JULY, 2013
R.N.I. No. 50796/90
Posting Date: 14/15 July, 2013
Registration No. DL(c)-01/1268/2012-14
Licenced to post without prepayment No. U-(C)-82/2012-14
CORPORATE AND ECONOMIC LAWS
1.0 Cos to raise Public funds subject to Compliance
All newly incorporated firms and those in the process
of getting registered under the CompaniesAct, 1956
will have now file an additional declaration, saying
they will never raise money from public without
meeting the norms of SEBI, RBI and other
authorities.
The ministry has also said that the declaration, which
is mandatory, has to be filed by the directors and
initial shareholders of the companies. In the case of
already registered firms, this declaration would be
required whenever the company changes its objects
of business.
The parties to anAPAagree on the transfer pricing
methodology to be applied to such transactions
for a future period of time
In India, besides unilateral APA between the tax
authority and a taxpayer, bilateral and multilateral
APAs involving the tax authorities of other
countries are also permitted
3.0 Domestic Transfer Pricing Rules & Audit Report
The Central Board of Direct Taxes (CBDT) has
issued a notification amending Transfer Pricing Rules
10A onwards to include domestic transfer pricing.
It has also issued an amended form 3CE to cover
international & domestic transfer pricing transactions
for issuance of Audit report.