SICASA e-Newsletter Jan-Feb 2015

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SICASA Chairman I am happy to be Chairman-SICASA-Southern India Regional Council of ICAI for the year 2015-16 comprising of six states i.e. Andhra Pradesh, Karnataka, Kerala, Pondicherry, Tamilnadu and Telangana and proud to be Chairman for 2,50,000 students. During this year I would like to conduct one day seminars exclusively for students which are useful for their day to day work such as Statutory Bank Branch Audit, how to prepare computation covering all heads of income, online filing of income tax returns, ROC Returns, how to do statutory audits of a company etc. Probably we will be hosting new SICASA website in a short time. I advise all the students who are appearing for May 2015 examinations to go through the revised study material - latest which is provided recently, Practice manuals, Revision Test papers, make use of Cloud campus, tips given in Chartered Accountant Student Journal and do not forget to do practice of practical subjects. Both Articleship period and examinations are very important. Students have to balance their office work and studies. I am sure that the students prepared well for the examinations will definitely get through. I hope this SICASA Team will act as leaders for all the Branches of SIRC of ICAI and also request all SICASA Chairmen of Branches to plan more activities for the benefit of the students. We are Planning for more industrial visits to all types of industries during this year with the help of Immediate Past Chairman Sri CA P.V.Rajarajeswaran and SIRC Chairman Sri CA P.R.Aruloli, Board of Studies Chairman Sri CA V.Murali and CFOs- Members in Industry in Chennai. Wishing all best to the students who are appearing for May 2015 examinations and happy learning to all other students. WITH BEST WISHES – CA ADUSUMILLI VENKATESWARA RAO

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Editor’s Take My dear friends, It gives me immense pleasure to address you after the exam results and I am sure many of our friends have succeeded in their efforts.  I hope that you have relived the exam tensions and pre-occupied mind of all examination materials and preparations. But we have to rededicate ourselves to further studies with great start and planned manner. This issue of newletter contains 2 things which follows, The First Industrial meeting of our term, Barclays Services on Jan 09th 2015 indeed gave a splendid response from the students, but couldnt accomodate more due to the limitations in the seats as per company. The session was explained by experts from their departments from CEO to fresh CA’s who just joined. In order to let the students know as to what the company deals with and the process we have attached the levels and process in this issue. Jagruti – Upgrade yourself to the changes - One day seminar was conducted on 26 January 2015 on IFRS and GST by eminent international speakers CA M.P. Vijay Kumar and CA P Rajendra Kumar. Nearly 330 students attended for this seminar and enlightened about the IFRS and GST matters for the future accounting purposes. CA M.P.Vijay kumar explained the differences between the the Indian AS and the IFRS and further he explained that how the new IFRS influences the India for the accounting purposes. CA P Rajendra Kumar has also explained that how GST would affect the Good and Services and how influences the accounting in India in GST in near future which is merging of all the indirect taxes like service tax, VAT, etc. As always if not November then May but NEVER GIVE UP “The harder the struggle, The more glorious the Triumph”. Wishing everyone good luck for preparations!! “ Today I will do what others wont, so tomorrow I can do what others cant” Regards, Swathi Bindu, Editor of SICASA of SIRC SICASA e-Newsletter Jan-Feb 2015

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Board of Studies (BOS) Chairman

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We are proud to inform you that Our Central Council Member CA. V. Murali sir has been elected as the new BOS chairman for the year 2015-16. A person full of positive thoughts, a motivational speaker and a person whom every student wishes to approach. CA.V.Murali sir is an elected Central Council Member of the ICAI for Four terms in succession for the periods 2004-2007, 20072010, 2010-2013 and 2013-2016 and secured sixth consecutive record win in ICAI elections from the Southern Region. We would like to bring forward to all the students the golden quotes that sir always tells which takes everyone to the success in life, Learning is a treasure which accompanies its owner everywhere. Live to learn, learn to live and learn from everyone. Never try to DEFEAT anyone, just try to WIN everyone as positions are ORNAMENTAL but relations are SENTIMENTAL. Work for a cause, not for applause, live life to express not to impress. Always chase your dreams instead of running from your fears. We heart fully congratulate you sir for being our BOS chairman.

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22nd CENTRAL COUNCIL OF ICAI 2013-2016 (SOUTHERN REGION)

Vice President-ICAI, CA. M. Devaraja Reddy Location : Hyderabad [email protected]

CA. K. Raghu Location : Bangalore [email protected]

CA. J. Venkateswarlu Location : Hyderabad [email protected]

BOS – Chairman CA. Murali V Location : Chennai [email protected]

CA. S. Santhanakrishnan Location : Chennai [email protected]

SICASA e-Newsletter Jan-Feb 2015

CA. Babu Abraham Kallivayalil Location : Kochi [email protected]

CA. G. Sekar Location : Chennai [email protected]

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21ST REGIONAL COUNCIL MEMBERS OF ICAI 2013-2016 (SOUTHERN REGION)

CHAIRMAN - SIRC OF ICAI, CA. P.R. Aruloli Location : Chennai [email protected]

TREASURER - SIRC OF ICAI, CA. B. Sekkizhar Location : Secunderabad [email protected]

VICE CHAIRMAN - SIRC OF ICAI, CA. V.X. Jose Location : Kochi [email protected]

CHAIRMAN - SICASA, CA. Adusumilli Venkateswara Rao Location : Hyderabad [email protected]

SICASA e-Newsletter Jan-Feb 2015

SECRETARY - SIRC OF ICAI, CA. E. Phalguna Kumar Location : Tirupati [email protected]

CA. Jomon K George Location : Kochi [email protected] om

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CA. Cotha S. Srinivas Location : Bangalore [email protected]

CA. Gopal Krishna Raju Location : Chennai [email protected]

CA. Naresh Chandra Gelli V Location : Hyderabad [email protected]

CA. M. Nithin Location : Bangalore [email protected]

CA. D. Prasanna Kumar Location : Visakhapatnam [email protected]

CA. P. V. Rajarajeswaran Location : Madurai [email protected]

CA. (Ms.) K. Sripriya Location : Chennai [email protected]

CA. P.R. Suresh Location : Bangalore suresh@chandranandram an.com SICASA e-Newsletter Jan-Feb 2015

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Barclays Services

As a part of Industrial Visit, which was organised by SICASA on 9th January 2015, nearly 60 students went to Barclays services, at DLF IT park, Ramapuram, Chennai. Seminar started at Barclays bank itself for enlightening their services like how friendly company they are, global financial reporting, global regulatory reporting, Cost management, BP&A, product control, change management and networking – floor walk by many speakers of Barclays. Speakers enlightened the services of Barclays and how their services are different from Indian companies in global and regional transformation programmes in finance covering aspects as process, technology, control & organization and also support all financial decision within the firm, through timely provision of quality data and partnership with key strategic decision makers. SICASA e-Newsletter Jan-Feb 2015

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Finance Change Management Overview: Enabling function that manages and delivers global and regional transformation programmes in Finance covering aspects of Process, Technology, Controls and Organization. Functionalisation: RBB: Retail, Barclaycard, Group centre CIBWM: Product control, Financial control, Finance decision support, Regulatory reporting, Wealth Management, Location stratedy. Explanation: • Process changes: Increase effencies and controls Process review and analysis, Impact assessment, Process reengineering, process design/redesign, documentation and training. • Technology changes: Simplify, automate, increase efficiencies and controls Functional assessment, Application/sysmtem impact ananlysis, Defining/ documenting business requirements and UAT strategy, Managing tech implementation and UAT, Post Implementation support, Liaison between various IT Teams Operations and finance line teams. • Project Management: Governance processes to manage, run and deliver programs/ projects to target. Manage standard methodologies, ensuring project governance using PMF, Managing risk and issues, Stakeholder management. • Regulatory and Statutory compliance: Readiness for regulatory/ statutory changes, new requirements Managing change around new or changed requirements by Regulator or statutory authorities (e.g iXBRL, Basel III ), Managing Risks & Control change and ensuring Compliance. SICASA e-Newsletter Jan-Feb 2015

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Financial Control • Overview: Responsible for ensuring that Barclays Group fulfils its external financial reporting requirements including statutory accounts, capital adequacy reporting, large exposures reporting and statistical reporting. • Explanation: • Group Financial Reporting (GFR): Monthly, quarterly and annual management and statutory reporting. • Group Regulatory Reporting (GRR): Regulatory reporting to UK Financial services authority (FSA) and provision of Internal management information. • Local Financial and Regulatory Control (Country FC) Legal entity and statutory reporting for non UK sites. • Technical Accounting Group (TAG) Specialises in providing technical advice to the business and finance on policy functions for IFRS and UK regulations. • FC Change Management/ Controls Support FC globally with the execution of major change programmes and to monitor and reduce risks by maintaining and reinforcing the control environment.

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Product Control • Overview: Primarily responsible for understanding, substantiating and controlling the daily trading balance sheet and income statement for Barclays Group • Explanation: • Key activities: a) P&L and Balance sheet production. b) Independent price verification c) New products and initiatives support d) Reporting management accounting information • Business aligned teams by asset classes: a) Equities b) EM, FX, Prime Services, etc. c) Fixed Income & GPLM d) Commodities e) Global Loans, P/L Mgmt, etc • Central Teams: a) Control b) Treasury c) Valuation d) Change management SICASA e-Newsletter Jan-Feb 2015

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Cost Management and BP&A • Overview: Support all financial decisions within the firm, through timely provision of quality data and partnership with key strategic decision makers. • Explanation: • Financial Planning and Analysis/ Revenue MIS Support senior management to fuel discussions, aid decision making and assit in effectively managing Barclays CIB. • Sales/ IBD Finance Provides advice and support to Distribution Sales teams globally. We collaborate with the business by providing strategic business insights through valueadd management information and advice/support on sales credit recognition around new product developments. • Cost Decision Support (CDS) Enables and supports all cost financial decisions within the firm, through the timely provision of quality data and partnership with key strategic makers. • Global Expense Payment Support (GEPS) Responsible for processing accounts payable and accounts receivable. • FDS Change Management/ Control Support FDS globally with the execution of major change programmes and to monitor and redce risks by maintaining and reinforcing the control environment. SICASA e-Newsletter Jan-Feb 2015

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Jagruthi- One day Seminar on IFRS and GST

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Jagruthi- GST

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BUDGET HIGHLIGHTS 2015/16 FISCAL DEFICIT • Fiscal deficit seen at 3.9 percent of GDP in 2015/16 • Will meet the challenging fiscal target of 4.1 percent of GDP • Remain committed to meeting medium term fiscal deficit target of 3 %of GDP • Current account deficit below 1.3 percent of GDP • Jaitley says have to keep fiscal discipline in mind despite need for higher investment INFLATION • Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing • Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 percent • "One of the achievements of my government has been to conquer inflation. This decline in my view represents a structural shift.“ REVENUES • Revenue deficit seen at 2.8 percent of GDP • Non tax revenue seen at 2.21 trillion rupees • Agricultural incomes are under stress • Net receipts under market stabilisation scheme estimated at 200 billion rupees

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GROWTH • GDP growth seen at between 8 percent and 8.5 percent y/y • Nominal economic growth seen between 11 and 12 percent • Aiming double digit growth rate, achievable soon

DISINVESTMENT • Government targets 410 billion rupees ($6.7 billion) from stake sales in companies in 2015/16 • Total stake sale in 2015/16 seen at 695 billion rupees • Sets stake sale target for 2016/17 at 550 billion rupees • Revises down stake sale target for 2014/15 to 313.5 billion rupees MARKET REFORMS • Propose to merge commodities regulator with SEBI • To bring a new bankruptcy code • Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee • To set up public debt management agency • Proposes to introduce a public contract resolution of disputes bill • To establish an autonomous bank board bureau to improve management of public sector banks

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POLICY REFORMS • To enact a comprehensive new law on black money • Propose to create a universal social security system for all Indians • To launch a national skills mission soon to enhance employability of rural youth • To raise visa-on-arrival facility to 150 countries from 43 • Allocates 346.99 billion rupees for rural employment guarantee scheme • Raises threshold for application of transfer pricing rules to 200 million rupees from current 50 million rupees BORROWING • Gross market borrowing seen at 6 trillion rupees • Net market borrowing seen at 4.56 trillion rupees GENERAL ANTI-AVOIDANCE RULES (GAAR) • Government defers rollout of anti-tax avoidance rules GAAR by two years • GAAR to apply prospectively from April 1, 2017 • Retrospective tax provisions will be avoided

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TAXATION • To abolish wealth tax • Replaces wealth tax with additional 2 pct surcharge on super rich • Proposes to cut to 25 percent corporate tax over next four years • Corporate tax of 30 percent is uncompetitive • Net gain from tax proposals seen at 150.68 billion rupees • Jaitley proposes modification of permanent establishment norms so that the mere presence of a fund manager in India would not constitute a permanent establishment of the offshore fund, resulting in adverse tax consequences. • Proposes to rationalise capital gains tax regime for real estate investment trusts • Extends withholding tax concession on foreign debt purchases by two years • Expects to implement goods and services tax by April 2016

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• To reduce custom duty on 22 items • Basic custom duty on commercial vehicle doubled to 20 percent • Proposes to increase service tax rate and education cess to 14 percent from 12.36 percent • Plans to introduce direct tax regime that is internationally competitive on rates without exemptions • Exemptions for individual tax payers to continue • To enact tough penalties for tax evasion in new bill • Tax dept to clarify indirect transfer of assets and dividend paid by foreign firms EXPENDITURE • Plan expenditure estimated at about 4.65 trillion rupees • Non-plan expenditure seen at about 13.12 trillion rupees • Allocates 2.46 trillion rupees for defence spending • Allocates 331.5 billion rupees for health sector • If revenue improves, hope to raise budgeted allocations for rural job scheme by 50 billion rupees SICASA e-Newsletter Jan-Feb 2015

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PERSONAL INCOME TAX • No revision of income tax brackets • Limit of deduction of health insurance premium increased to 25,000 rupees from 15,000 rupees; limit increased to 30,000 rupees from 20,000 rupees for the elderly • People aged above 80 and not covered by health insurance to be allowed deduction of 30,000 rupees for medical expenses • Additional deduction of 25,000 rupees for the disabled • Limit on deduction for contributions to pension fund and new pension scheme increased to 150,000 rupees from 100,000 rupees • Additional deduction of 50,000 rupees for contribution to new pension scheme under section 80CCD • Monthly transport allowance exemption doubled to 1,600 rupees

IMPORT TAX • Import tax on iron and steel increased to 15 percent from 10 percent • Import tax on metallurgical coke increased to 5 percent from 2.5 percent

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INFRASTRUCTURE • Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year • Plans to set up national investment infrastructure fund • Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects • Proposes 5 "ultra mega" power projects for 4,000 MW each • Second unit of Kudankulam nuclear power station to be commissioned • Will need to build additional 100,000 km of road • Ports in public sector will be encouraged to corporatise under Companies Act INVESTMENT • Government to provide 79.4 billion rupees capital infusion to state-run banks • Propose to do away with different types of foreign investment caps and replace them with composite caps • To allow foreign investment in alternative investment funds • Public investment needed to catalyse investment SICASA e-Newsletter Jan-Feb 2015

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GOLD • To launch gold deposit accounts and sovereign bond • Import duty stays at 10 percent; disappoints jewellers • To work on Indian-made gold coin to cut imports CIGARETTES • Raises excise duty on cigarettes by 25 percent for cigarettes of length not exceeding 65 mm • Raises excise duty by 15 percent for cigarettes of other lengths SUBSIDIES • Food subsidy seen at 1.24 trillion rupees • Fertiliser subsidy seen at 729.69 billion rupees • Fuel subsidy seen at 300 billion rupees • Major subsidies estimated at 2.27 trillion rupees • We are committed to subsidy rationalisation based on cutting leakages

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CONTACT US!!! “No candle loses its light while lighting another candle. So never stop sharing and helping other because it makes life more meaningful”

For knowing about all the events conducted by the SICASA and SIRC

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