Felicitation to Mr S. C. Jaini, IRS, CCIT, AP-I

The FAPCCI in association with A.P. Tax Bar Association and Hyderabad Branch of SIRC and ICAI felicitated to Mr S. C. Jaini, IRS, Chief Commissioner of Income Tax A.P. – I on 27^th August, 2011 at 6pm at K.L.N. Prasad Auditorium, FAPCCI, as he was elevated as member of Central Board of Direct Taxes (CBDT).

Mr S. C. Jaini, IRS, expressed his happiness and thanks to the organizers.

Mr. Jaini said tax evasion was not something a nation could be proud of and that India was still a poor country with islands of prosperity.

Poverty, economic disparity and social tensions could not be ignored and while the middle classes were growing, it was time to think of harsh realities, he told a gathering at the FAPCCI. Regarding the manner in which rich people flaunted their wealth, he said ‘the display of wealth was not in our civilisation' and that it created more anger.

Appreciating the increasing levels of voluntary compliance in the country, he said the relatively-low rates of taxes had motivated more and more people to voluntarily pay up direct taxes. He recalled that in the 70s, as a young Income Tax Officer the direct tax collected was a mere Rs.113 crore, compared to a whopping Rs.30,000 crore now, indicated how much the tax base had widened. He said he understood that there were administrative and enforcement problems and said persuasion was surely more effective than cracking the whip all the time.

Mr V. S. Raju, President, FAPCCI in his address stated that it is a momentous occasion for us to honor the Chief Commissioner. He requested the Chief Commissioner to recommend to the board to include FAPCCI in the pre-budget consultation meetings on Direct Taxes.

Mr Abhay Kumar Jain, Chairman, Direct Taxes Committee, FAPCCI in his introductory remarks stated that grievance resolution mechanism should be strengthened for better compliance. He further pointed out that the stay petitions are not acted upon and grant of stays particularly in respect of disputed taxes at least till disposal of first appeals.

CA. M. Poorna Chander Rao, President, A.P. Tax Bar Association Introduced the Chief Guest.

Ms Santhi Sree, Immediate Past President, A. P. Tax Bar Association, Mr Laxminiwas Sharma, Chartered Accountant, Past President, FAPCCI, Mr A. Srinivas Ayyadevara, Vice President, FAPCCI and Mr K. C. Dev Das, Chartered Accountant shared their experiences and memories with Mr S. C. Jaini.

The meeting ended with a Vote of Thanks by CA. Adusumilli Venkateswara Rao, Chairman, Hyderabad Branch of SIRC of ICAI.

Certificate Course in “Basics of Supply Chain Management”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) conducting a certificate course in “Basics of Supply Chain Management” from September 05-08, 2011, from 4 pm to 6 pm, at JS Krishna Murthy Hall, Federation House, FAPCCI, Red Hills, Lakdi-Ka-Pul, Hyderabad.

The course will cover the basic Concepts of Supply Chain/ Value Chain and importance of these to Business. Designing Supply Chain Network, Planning and Managing Inventories in Supply chain, Planning Strategic Partnerships with Suppliers, Key Critical Supply Business Processes like Procurement Flow, Production Flow, Warehousing Needs, and Role of Logistics.

This course will be useful to Students pursuing management studies, Executives working in Finance, Marketing, and Purchase Departments and Proprietors, Partners, and Directors of Micro, Small and Medium Enterprises/Companies.

Candidate desirous of joining the course may contact Mr. JR Kumar, Faculty Director on 9885921599 for registration.

American Debt Crisis – Lessons for the World

Hyderabad, 27^th August 2011:

The FAPCCI in association with Pragna Bharathi organized a seminar on “American Debt Crisis – Lessons for the World” on 27^th August, 2011 at 5.30 pm at Surana Udyog Auditorium, Federation House, FAPCCI. Mr. M.R. Venkateshan, Economist, Columist & Author from Chennai was the chief guest for the occasion.

Mr V. S. Raju, said that t he downgrading of the US government’s debt credit rating by the rating agency Standard and Poor’s has added new challenges to the Indian financial market. As the country’s economy is facing the threat of a slower GDP growth in the current financial year, industry is reeling under high interest costs; inflation is ruling high and the stock prices are at their 14 months low, trouble in the US economy adds a new dimension.

He also said that one of the 15-largest foreign creditors to the US, India’s exposure to the United States’ ballooning debts is estimated at US $ 41 billion. The overall national debt of the US is moving nearer to $ 15 trillion, out of which it owes over USD 4.5 trillion to foreign countries holding the US government debt securities. While China is the single-largest holder of the US treasury bonds of $1.15 trillion, India stands at 14th position (about Rs 1.83 lakh crore), as per the US Treasury Department data. While the unprecedented downgrading of the US treasury bonds may lower the value of RBI’s holding, the central bank will not be able to switch its reserves to other currencies or to any other form of asset quickly. Some experts feel that the RBI may continue to hold US bonds even with a notch-lower rating, as it has been itself amassing the US treasury securities over the past one year despite a deepening debt crisis there. The Indian holding has grown by about $ 10 billion in the past one year.

As 60 per cent of India’s $60 billion software exports are targeted to the US clients, their weak financials will hamper demand. According to TPI (an Information Service Group Company) data, already the large IT and BPO outsourcing deals in US market were down 50 per cent in the six months January-June 2011 Mr Raju said.

He also expressed the exporters are worried that the debt crisis in the western world will hit demand and lead to a payments problem. Europe and the US account for a third of India's exports. The exporters are expressing concern whether to accept orders coming from the US and the EU (European Union). There is a probability that those might be cancelled mid-stream or our buyers may not be in a position to pay us after receiving goods. In the backdrop of the crisis in the two regions, it is necessary that the Government of India should extend tax sops and other incentives to exporters.

Industry believes that it was the right time for RBI to move ahead of the curve and cut the rates. After all, India could use the current global economic turmoil to its own advantage, just at it withstood the perils of 2008 crisis. It may be noted that a cut in interest rates would have boosted corporate India’s confidence, which has taken a hit. Last but not the least; we need to emphasize the importance of implementing the next phase of structural reforms. Without progress in reforms, investment sentiment will not improve and an opportunity will be missed he said.

Mr M.R. Venkateshan, said in his address is that the Indian model of economy is the global model for entire world. Comparing to America Indian saving is very high. India spending economy as compare to china and India is saving economy as compared to the United States.

Mr S. Thirumalai, Management Consultant, Economist & Past President, FAPCCI, Dr.Somaraju Suseela, President, Social Cause, Dr.T. Hanuman Chowdary, Chairman, Pragna Bharati, Mr Devendra Surana, Senior Vice President, Mr Srinivas Ayyadevara, Vice President and Mr A.S. Kumar, Deputy Secretary General also addressed at the occasion.

Liabilities Management in Special Situations

The FAPCCI organized a Interactive Session on - ‘Liabilities Management in Special Situations’ today evening at FAPCCI. Mr. A.S. Rao, Regional Director, Reserve Bank of India was inaugurated the session.

Ms. Pramila Rani, General Manager (SME), Andhra Bank, Mr. Sridhar Ramachandran, Director, Brescon Corporate Advisors Limited, Mumbai, Mr V.S. Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Lakshmikanth Inani, Co-Chairman, Banking, Finance and Insurance Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General from FAPCCI and eminent economists, industrialists across the state have participated at the round table on Liabilities Management.

Mr. A.S. Rao is said in his chief guest address is Liabilities Management Involves in adequately meeting Solvency / Liquidity requirements, Controlling and diversify risk, Reduce mismatches in cash-flows, Establish Strategic Directions, Add Value Creation/ Risk adjusted ROC, Capital Allocation and helps in Sustainable business growth even in ‘Economic Down-Cycles’ and Better ability to leverage ‘Economic Up-Cycles”.

MS. Pramila Rani said that the industrialists should have optimum equity for the implementation or restructure of the company. Reasonable cost management is plays a vital role in special situations likes up and downs of the company.

Mr V.S. Raju said that Indian business houses now have grown into large, multinational behemoths competing with companies in the west that have been ruling business landscape of the world since decades. Key enabler to this multi fold growth of Indian business houses has been access to money both from India and abroad. Money has been raised both as Equity and Debt in order to fuel the growth of scale of operations. Naturally, liabilities on the books of businesses have grown in an unprecedented way. However, much more importance is given to managing the assets of the business and not much has been put into “Liabilities Management.” Managing the liabilities on the balance sheet, such that the Assets keep growing in a profitable and sustainable way is Liabilities Management.

The Advantage of Liabilities Management would be Better Credit quality enhancing Banker confidence leading to greater and expeditious access to debt capital, Sustainable business growth even in ‘Economic Down-Cycles’, Better ability to leverage ‘Economic Up-Cycles” and Investor confidence leading to better business valuation and access to share capital.

Mr. Lakshmikanth Inani said that the Liabilities Management is a tool that enables corporate managements to take business decisions in a more informed framework with an eye on the risks that corporate is exposed to. It is an integrated approach to financial management, requiring simultaneous decisions about the types of amounts of financial assets and liabilities - both mix and volume - with the complexities of the financial markets in which the institution operates.

He also said that implementing assets and liability management systems is sure to enhance the productivity of the employees, who are managing the assets and the liabilities in a company. Moreover the management can get timely reminders and reports regarding the assets and liabilities which will definitely help them in taking some critical decisions regarding their business. There are many companies / firms that are using assets and liability management systems and they also manage the assets and liabilities of other companies.

Mr. Sridhar Ramachandran has given a presentation on ‘Liabilities Management in Special Situations’ at the session.

Round Table on - Draft Land Acquisition & Rehabilitation Bill, 2011

The FAPCCI organized a Round Table on - Draft Land Acquisition & Rehabilitation Bill, 2011 today afternoon at FAPCCI. Mr. Pankaj Dwivedi, IAS, Special Chief Secretary Govt. of AP & CCLA was inaugurated the session.

Mr V.S. Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, Mr. Srinivas Ayyadevara, Vice Prsident, Mr. Nitin K Paresh, Chairman, Trade & Commerce Committee, Mr. S. Subba Rao, Membership Committee, Mr. M.V. Rajeshwara Rao, Secretary General from FAPCCI and Mr. P.A.S.M. Laxman Rao, Joint Director (RE), Town & Country Planning, Mr. C. Rami Reddy, Joint Director, (II-B), Commissioner of Industries officials from APIIC and eminent lawyers across the state have participated at the round table on Land Acquisition Bill.

Mr. Pankaj Dwivedi explained about the participants on Draft Land Acquisition & Rehabilitation Bill, 2011 at the round table.

He said that the infrastructure across the country must expand rapidly. Land is an essential requirement for Industrialization; Urbanization especially based on manufacturing as well as agriculture and irrigation also to accelerate. Government also needs to acquire land for a variety of public purposes. In every case, land acquisition must take place in a manner that fully protects the interests of land-owners and also of those whose livelihoods depend on the land being acquired.

Under our Constitution, land is a State subject but land acquisition is a Concurrent subject. So far, the basic law governing the land acquisition process has been the Land Acquisition Act, 1894. Although it has been amended from time to time, it is painfully evident that the basic law has become archaic. Land markets in India are imperfect. There is asymmetry of power (and information) between those wanting to acquire the land and those whose lands are being acquired. That is why there has to be a role for the government to put in place a transparent and flexible set of rules and regulations and to ensure its enforcement.

Mr. Dwivedi also said that Land Acquisition and Rehabilitation and Resettlement (R&R) need to be seen necessarily as two sides of the same coin. R&R must always, in each instance, necessarily follow upon acquisition of land. Not combining the two – R&R and land acquisition – within one law, risks neglect of R&R. This has, indeed, been the experience thus far. The draft Bill seeks to balance the need for facilitating land acquisition for various public purposes including infrastructure development, industrialization and urbanization, while at the same time meaningfully addressing the concerns of farmers and those whose livelihoods are dependent on the land being acquired.

Mr V.S. Raju said that with a spate of controversies and clashes over acquisition of farmland for private projects, the Government of India recently unveiled a draft bill to make the process transparent and equitable to all stakeholders including land owners, with provisions not only for suitable compensation but also post-sale rehabilitation. The Draft bill, which seeks comments from public till 31^st August, 2011, stresses on Rehabilitation & Resettlement (R&R) by proposing a transparent legal framework aimed at giving adequate compensation to land owners and ensuring rehabilitation of those displaced farmers.

It may also be noted that the National Advisory Council’s (NAC) working Group on Land Acquisition, Resettlement and Rehabilitation recommendation for the replacement of Land Acquisition(Amendment) Bill 2009 (LAA 2009) and Resettlement and Rehabilitation Bill 2009 ( R&R 2009) with a comprehensive single National Development, Land Acquisition, Resettlement and Rehabilitation Act (NLRR).

Workshop on “Development of Dairy Industry in A.P.”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) is organizing a one day State Level Workshop on “Development of Dairy Industry in Andhra Pradesh" – A Changing Perspective" - on September 9, 2011, at K.L.N Prasad Auditorium Federation House, FAPCCI, Red Hills Hyderabad. The workshop is going to be the first of its kind, bringing together all the stakeholders of the dairy industry to a common platform and to address the techno managerial issues cropping up in the context of changing perspective of Dairy industry in AP.

The workshop is designed with a view to familiarize the prospective entrepreneurs who are going to start Dairy Industry in Andhra Pradesh with all relevant inputs and also to address techno managerial issues related to entire Dairy Industry in Andhra Pradesh to enhance overall performance. During the workshop deliberations will be held on aspects like National Dairy Plan relevant to Andhra Pradesh, Present scenario and future perspective of Dairy Industry in Andhra Pradesh, Commercial Dairy Farming and finance for new Dairy Projects, Integrated Dairy Farming, Live Stock Management & Health Care, Milk Chilling and Bulk Coolers, Clean milk Production and Logistics Management, Food Safety and Hygiene animal health care changing technology in processing and packaging equipment etc.

This workshop is meant for senior level officials of State Departments of Animal Husbandry, Dairy development, Food processing, Agriculture, Dairy plants, Milk Unions & State federations, Quality / Standards Certification Agencies, Veterinary Universities, Vaccine and Medicine Manufactures, Cattle Feed Manufactures, Financial Institutions, Packaging and process equipment, manufactures and suppliers and prospective entrepreneurs who are intending to start Dairy Industry.

Please contact Mr L Girijapathi on 9959822264 for registration and further details.

Training Programme on “ Effective Sales Management”

The Federation Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in collaboration with IKYA Education and Training Interventions team of experts has successfully conducted a specialized Two day Training Programme on “ Effective Sales Management” at FAPCCI premises on August 22 & 23, 2011 at Federation House, Hyderabad. The participants were successfully trained through modules in Sales Fundamentals, Sales Processes, Classroom, Exercise, role play methods & quiz to make the interaction lively.

As shared by Mr. Ram Mohan Katla, Vice President, IKYA Group looking at the encouraging response in collaboration with FPACCI , IKYA will be organizing series of training programmes in various domains to the SME segment over next two months in basics to advanced skills and urged the SME to benefit through this programmes conducted by domain experts.

The next schedule of the programmes will be circulated through FAPCCI Review.