Wednesday, October 30, 2013

DOING BUSINESs in or with INDIA - Ranking ?

Top-ups >
 Related Party ?
Family matters
There is no justification for a soft approach towards related party transactions despite corporate India's protestations

 Improving the Ease of Doing Business in India

"Given the various concerns expressed by businesses and investors (both domestic and foreign)... , this is certainly a welcome move."
If critically perceived, subject to a detailed analytical study leading to a right or better conclusion, there is one thing which, it is strongly felt, ought not to be short sighted. That is, the respective "concerns" of businesses and investors are materially different, and in many respects, mutually conflicting.The same intricacy actually holds good, with equal relevance, also in relation to 'domestic' and 'foreign'.
Seems worthwhile researching on, at the very inception of conceiving, and for suitably structuring, in as well balanced  a manner as feasible, such or any other like policy, before gone ahead with and seeking to implement.


When the tax bill is unreasonable

Watch out Here comes the tax collector Ron and Joe /
Whether a company pays it and goes to court, or seeks a stay on the demand would depend on the specifics of a situation
One of the catch-22 situations that corporate India faces when a huge tax demand visits them...
<> Going by one's limited know of things, but as a novice, before the introduction of later novelties like MAT,  be it a business or professional firm , if professionally managed,  was known, almost on a day-to-day basis, to keep a watch on the 'bottom line' first, to take a conscious decision on the 'top line' and the several ones in-between. As regards any other, e.g . taxman, same way as a shareholder,  used to have his eyes glued mainly to the bottom line ; and as such, used to be least bothered as to how those are reflected or disclosed in the Balance Sheet. Again , going by the same limited knowledge, may be outdated now, with such  changes as MAT, the old practice could have changed.
Be that as it is inevitable,  if one is not mistaken, there used to be a confusion on, - had a demand notice been served, litigable or litigated, or not, - as to whether or not it should be, in the books and final accounts, disclosed as a liability certain, not 'provision' for a contingent liability ; and only in the event of  and depending on the final outcome, treatment and manner of disclosure need to accordingly require a revision. According to a view, any outstanding demand as at the year end, even in dispute, will, therefore, require to be appropriately shown as, not under ' contingent liability' but as current liability;  and had it been paid, shown as 'contingent asset' having regard to the possibility of it being refunded in case of final success in appeal.

Incidentally, the intriguing part , as noted by a layperson with a pinch of salt, is  the bottom line- claiming,  that "the views are personal". It is unclear  why the need to specifically saying so;  as , could, after all,  it be any different even otherwise.



 Directors’ Actions: For Whose Benefit?

Jun 3

Macro Economy

Every registered business in India has 127 ‘shadows’

A UK study puts India’s shadow economy at No.2, behind Indonesia’s
India has emerged as a country with some of the highest number of unregistered businesses in the... »

Apr 9


Now, GMR's Philippine project flies into trouble

The company faces a petition in Philippine's Supreme Court to scrap the deal

Quick Comments:
1. It is not uncommon knowledge that, among others, in recent times, concerns over dubious and unhealthy practices harmful to any nation's economy has been catching up /taking over in an alarmingly increasing pace, -such as 'insider trading', 'under-cutting','majority x minority interests', 'controlling interest'. and the like. In fact, "conflict of interest" in issue herein, is, in a manner of speaking, no different from the other closely related concept, - "related party transactions".
2.  "The Philippine airport is crucial for GMR that has loaded itself with debt to fund its foreign expansion.' - Does this cryptic observation, by any chance, carry a hidden message, bringing to a sharp focus the question ability  of wisdom or otherwise of the company 'loading itself with debt',- that is, same as the impudence/imprudence underlining the old saying - "counting chickens before hatched". May be, the surrounding  details could  throw up factual  clarity to the restive stakeholders !

< Now, GMR's Philippine project flies into trouble
The company faces a petition in Philippine's Supreme Court to scrap the deal Read More »

Recent Article in Opinion
Innovating in business involves a full-scale makeover. G. R. N. Somashekar


India Inc sticks to low hanging fruit — aping the West’s goods and capitalising on cheap labour. The financial mechanism of wealth generation through innovation is not well understood in India. »

 Recent Article in Industry

Complaints against 215 ads upheld by ASCI

Advertising industry watchdog upheld complaints against 215 campaigns in August this year for misleading ads, including those of Hindust... »

< Related

Juggle-Bandhi : jugsuraiya - Times Of India Blog › Blogs
It all ads up. Posted By Jug Suraiya 07 November 2013, 10:15 PM IST .... After subscribing to it, along with the TOI, for many years, I recently stopped getting the .... 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Today ...
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PM’s panel will drive execution of infra projects

Magnificent Obsession >

How Economic Growth Has Become Anti-Life

An obsession with growth has eclipsed our concern for sustainability, justice and human dignity. But people are not disposable – the value of life lies outside economic development

Limitless growth is the fantasy of economists, businesses and politicians. It is seen as a measure of progress. As a result, gross domestic product (GDP), which is supposed to measure the wealth of nations, has emerged as both the most powerful number and dominant concept in our times. However, economic growth hides the poverty it creates through the destruction of nature, which in turn leads to communities lacking the capacity to provide for them.

When every aspect of life is commercialised and commoditised, living becomes more costly, and people become poorer.

 by Vandana Shiva


<><> Opinion

Time for Government to mould a recovery. — H.S. ManjunathAlternative growth estimates put out by the government show that the dip has been alarming. »

"RBI, inflation, GDP growth, monetary policy, public-private partnership, monetary tightening, organised commercial sector, incremental capital output ratio, fiscal deficit"
Should one go by the sheer number of the Key Words impressively listed, the instant tendency is to believe that , in comparison, the write-up may be worth giving it a second reading, let alone a serious thought. But a moment's painful reflection leaves one with a different impression; for, most of these are realized to be nonetheless  the same as often picked up before, except that  every time underlining and laying emphasis  happen to be on one or more each of the ideas, not all, sought to be covered.
Be that as could have been normally expected, certainly there is one thing which has yet again been glossed over, with no attempt giving a second thought , much less an incisive deliberation or  introspection whatsoever. That has something to do with the totally distinct but prima facie ideal school of thought, According to the initiator thereof, what has been unwisely but deliberately avoided to be explored is, this:- is it not , in the ultimate analysis, a reality that the  so called “economic growth”, mostly aspired for  and increasingly pursued, in any form and substance of its kind,  as a magnificent obsession,  has become ‘anti-life’.  The message as   intelligently conveyed: "An obsession with growth has eclipsed our concern for sustainability, justice and human dignity. But people are not disposable – the value of life lies outside economic development."
For a true appreciation of the soulful wisdom behind the referred thought, but in its original flavour, recommended to read the article keyed-in by the renowned philosopher cum writer, Dr. Vandama Shiva, -  How Economic Growth Has Become Anti-Life.




< previous

A Seemingly Bizarre Episode This >!

< Debashis Basu: Hiding from rough laws


While the provisions of the new Companies Act have been out in the open for discussion for two years, did you see any serious representation by industry associations, chambers of commerce, or business leaders who regularly meet top ministers in different fora? And what about the new powers of Sebi, which, in the past, has shied away from using the powers that it already had? Instead, it preferred to pass "consent orders" to let off various market players under dodgy legal provisions.
People like Mr Maniar, who represent the cream of the Indian corporate sector, have collectively buried their heads in the sand about laws and practices that should affect them directly...... >

< On one of the aspects of SEBI 's powers to pass "consent orders" found a brief mention, for an elucidation / update, attention is invited to the related Blogs and the comments posted @ ; for instance, refer :

Ambiguity regarding Consent Settlements - whether resolved?

Cross refer >
 comments by swami on consent orders of sebi

Oct 12, 2012 ... It questions the perceived sanctity and finality of consent orders and whether ....

Sep 6, 2013 ... Amongst the orders

Mar 27, 2013 ... SEBI's recent interim Order and findings in Zenith's case again present ....

Sep 10, 2013 ... In a previous post, we
Sep 13, 2013... to be promulgated by the Central Government in order to make them operational. ...
Sep 20, 2013... for MSMEs and an appellate process for persons aggrieved by an order of rejection. ...

Mar 21, 2013 ... An informal guidance cannot be construed as an order of SEBI and is not appealable before the Securities Appellate Tribunal under section ...

< On Screening/'moderation'-

Comment posted y'day is noted to be still withheld in the name of 'moderation'. It appears that the well-intended brief comment was meant to serve as a useful feedback, on the need for/implying as to why any such  write-up, especially on a topic of this kind, in order to be profoundly useful and be of some guidance, as expected of by the common readers, -instead of being so harsh verging on a personal affront or confrontation, hence desirably to be eschewed, -must not be confined to 'one-track' or an in-box sort, but be more comprehensive and multidimensional one.

Rs 5,357-crore tax blow for IBM

Tech giant to move court against I-T demand on grounds of alleged under-reporting of FY09 revenue


IBM India to move court against IT department's Rs 5357 crore tax notice

Cross Refer>


Doing Business Rankings 2014: Status Quo for India
The Doing Business Rankings 2014 have just been published by the World Bank and IFC. Nothing much has changed in the case of India. It has dropped three places from 131 to 134 out of a total of 189 countries. While the entire report is available here, India’s country report is available here
Imponderable : At the end of the day (or year or decade(S)) , - What 'useful' social purpose, be it in the national or international arena,  it is truly hoped or expected  to serve ??????

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