21 February_EMPOWER B-School

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P WEREM21 FEBRUARY, 2014Volume 3, Issue 7

Powered by OAN E-WEEKLY FROM THE WESTERN INDIA REGIONAL COUNCIL OF

THE INSTITUTE OF COMPANY SECRETARIES OF INDIAwww.freepressjournal.in

ndia pressed for automatic exchange of key finan-cial information and greater cooperation amongG20 nations to effectively address tax problems

d protect the integrity of the taxation system, reportsTI.Participating in the meeting of G20 Finance and Cen-l Bank Deputies here, Economic Affairs Secretaryvind Mayaram said information sharing should alsodress tax avoidance and urged the US to introduceciprocity in its Foreign Accounts Tax Compliance Actfacilitate the exchange of data.Automatic exchange of information should not onlydress tax evasion, it should also address tax avoid-

ce...tax avoidance should be seen as part of the prob-m," he said after the meeting.The automatic exchange of information should alsover aspects other than taxation, such as salaries, pen-

on royalties and dividend, he said.

Mayaram said certain issues were raised about theBase Erosion and Profit Sharing (BEPS) initiative, whichseeks to address strategies that exploit gaps in tax rulesto make profits disappear for tax purposes or shift prof-its to places where there is little or no real activity but

low taxes.He said action on BEPS should not take into accountonly the concerns of developed countries because theelements of their tax-base erosion can be very differentfor low-income or developing nations.

"They must interact strongly with developing coun-tries like India to take our concerns on board in design-ing the framework under which base erosion can be ar-rested. We said that we have issues with regard to trans-fer pricing, transparency...we need to look at that also,"he said. Work on BEPS, launched by the Organisationfor Economic Co-operation and Development, is sup-ported by the G20. Mayaram said issues related tointernational taxation were also raised amid increasingglobalisation.

Cooperation in tax administration is critical in thefight against tax avoidance and evasion in protectingthe integrity of tax systems, Mayaram said.

SOURCE: Free Press Journal

www.freepressjournal.in

India for automatic exchangeof key financial info at G20

R aising concerns of emerging economiesover the impact of tapering, India saidthe US Federal Reserve should provide

guidance and withdraw the monetary stimulus in acalibrated manner.

"There must be some benchmark...Should it beUSD 10 billion every quarter or USD 20billion...without destabilising the economy."Nobody knows how they are going forward. Wewant that to be a little more calibrated and onethat takes others into confidence. Central bankersshould be informed as they look into monetarypolicies. There has to be guidance," India's Econom-ic Affairs Secretary Arvind Mayaram said. The Fed has reduced its monthly bond purchases

by $20 billion to $65 billion on signs of an improv-ing US economy. The reduction in stimulus,known as tapering, may affect capital flows toemerging markets and impact their currencies.

US Fed must provide guion tapering stimulus: In

Microsoft CEO Nadella says Gates, Ballmer ‘test his convI n his latest interview with the New York

Times, Microsoft's new CEO Satya Nadellatalked about his relationships with former

company heads Steve Ballmer and Bill Gates andsaid both "pressure-test you." The Indian-origin former cloud computing chief

at Microsoft said that Gates is the most analytical-ly rigorous person and in the first five seconds of ameeting he would find some logical flaw in some-thing he has shown him.

Nadella admitted that he used to feel intimatedwith Gates in his early days of meeting him, but helearned that Gates was grounded and one couldpush back on him during arguments, The Verge re-ports.

According to the report, he said that both Gatesand Ballmer test one's conviction and despitetheir changed roles at Microsoft, Nadella said thatit was no big deal as they had been working to-gether closely for around nine years.

After Ballmer stepped down, Nadella was namedas the company's third CEO and Gates assumed anadvisory role.

Nadella said that one of the fantastic things thatonly Gates could do inside this campus was to geteverybody energized to bring their 'A' game.

The new CEO has announced 'mobile first, cloudfirst' strategy on which Microsoft would be nowstressing upon under his leadership.

Nadella also said that instead of resting on itslaurels the software giant needs to focus more onreinventing itself and become a company "wherepeople find deep meaning at work". The 46-year-old Nadella said in his new role he

would work on reinvention and innovation in the

company in the new technology environment in-stead of harping about Microsoft's past successes.

"Longevity in this business is about being ableto reinvent yourself or invent the future. In ourcase, given 39 years of success, it's more aboutreinvention. We've had great successes, but our fu-ture is not about our past success. It's going to beabout whether we will invent things that are reallygoing to drive our future," he told the New York Times.

Nadella revealed that while playing for hisschool's cricket team, he got his early leadershiplessons.

Nadella revealed that there was one incidentwhen he was bowling and throwing very ordinarystuff when the team's captain took over from himand got the team a breakthrough, and then lethim take over again.

He said that he never asked the captain why hedid that, but he believed that the captain knew hewould destroy his confidence if he didn't put himback in, and then Nadella went on to take a lotmore wickets after that, Sydney Morning Heraldreports. -ANI/PTI.


co Affairs Secy Arvind Mayaram says dataharing should also address tax avoidancend urges the US to introduce reciprocity ins Foreign Accounts Tax Compliance Act to

facilitate the exchange of data

Satya revealed that while playingfor his school’s cricket team, hegot his early leadership lessons



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Different sections of the soci-ety, including politicians

and corporates, should work towards job creation as it is the only"antidote" that can make the countryprosperous, InfosysBSE 1.02 % Execu-tive Chairman N R Narayana Murthysaid today.

He also emphasised upon the needfor countries like India to use technol-ogy in an intelligent way to reducepoverty and promote transparency ingovernment as well as corporates.

"The need of the day for all of us, in-cluding politicians, bureaucrats, acad-emicians, corporate leaders and civil

societies is to come to a unanimousconclusion (that) job creation is only

antidote, and only solution to makecountry prosperous," Murthy said dur-ing his address at the foundationstone laying ceremony of Infosys' newcampus here.

He also said that the governmentshould use taxes for making lives bet-ter, particularly of poor people by pro-viding them basic education, health-care facilities and so on.

Murthy, who returned last June fromretirement to head the firm, alsostressed on adoption of technologyby the country in order to reduce

poverty."Technology is the finest instrument

that God has given us to reducepoverty in countries like India...onecountry that has to embrace technol-ogy in a very intelligent way," he said.

"We must embrace technology in avery passionate way so that govern-ments become accessible to thepoorest of poor, companies can createmore and more jobs leveraging thepower of technology and make livesof poor people better by helpingthem," he added.

Source: PTI

Job creation only solution to makeIndia prosperous: Narayana Murthy

S tating that there was a shortage of over 1.5 lakhtrained professionals in the disability sector in 2012, aparliamentary panel has asked the government to

reate better prospects for those looking to work in the area.In a report tabled in Parliament, the Standing Committeen Social Justice and Empowerment cited the government'swn data to state that there was a shortfall of 1,58,598 pro-essionals in the disability sector in 2012.Expressing concern, the panel chaired by Hemanand Biswal

aid that the primary reason for the shortfall was the poorompensation and pay packages given to those working inhe sector.In a landmark judgement, Delhi High Court had in Septem-er, 2009, directed Delhi government to ensure equal termsnd conditions of service for special teachers with those hav-ng diplomas and degrees in general education, the paneloted.

It recommended that the Department of Disability Affairstake up with the HRD Ministry and state governments thatmatter of giving good pay packages to those working in thedisability sector. To encourage more young people to take up this noble

profession, these workers should have good promotional av-enues on a par with those employed in normal schools anduniversities, the panel added.

It also said that the national institutes in the disability sec-tor should get greater funds so that they may fulfil their pri-mary objective of training manpower, capacity building andresearch while catering to patients. The panel stressed on the need for a legislation for persons

with disabilities which would be in consonance with the UNConvention on Rights of Persons with Disabilities.

SOURCE: PTI

Employeesgoing on study

leave mustsign bond:

Government

T he central governmenthas made it mandatoryfor its employees going

n study leave to sign a bondonfirming their commitment tout in requisite active service af-er expiry of the leave period.At present, an employee exe-utes a bond committing to payoans or money incurred on himy the government before pro-

eeding on study leave.The move comes after govern-ment noticed that such bonds are

eing circumvented and officerswho have availed study leave pro-eed on prolonged spells of leaveue and admissible to them ando not put in active service forhe requisite period as mentionedn the bond executed by them,he Ministry of Personnel said inn office memorandum issued to-ay.The government said relevant

hanges in the service rules

would be made and revisedonds would be issued incorpo-ating a specific clause confirmingommitment of the an employeeo put in requisite active servicefter expiry of the study leave, itaid. There are about 50 lakh cen-al government employees.

SOURCE: PTI

With an average pack-age of over Rs 16 lakh,

students of the XavierSchool of Management ( XLRI)Jamshedpur has achieved 100 percent campus placement for its2012-14 batch.

Officials of the premier B-schoolsaid the final recruitment processsaw participation from 103 re-cruiters recently which made 254offers for a batch of 245 students. The recruitment ended on the

fourth day and the median salaryof the batch was over 16.25 lakhper annum, they said. This year around 32 new re-

cruiters joined the campus place-ment.

BFSI and consulting firms recruit-ed from the institute in large num-bers with around 50 per cent of business management studentsbeing offered roles in finance andconsulting domains.

Students of XLRI's human re-sources programme secured excel-lent job offers across sectors likeconsulting, FMCG and generalmanagement, officials said.

At least 79 students were offeredPPOs (Pre-Placement Offers) fromtheir summer internships, a near25 per cent increase over the pastyear.

SOURCE: PTI

100 per centcampus

placementat XLRI

Improve job prospects in disability sector: Parliamentary panel to govt

STATE BANK OF INDIA MAY SLOW HIRING IN NEXT FEW YEARS

S tate Bank of IndiaBSE 1.46 %,the country's largest lender,may go slow on recruitments

during the next 2-3 years, a top bank official said here today.

According to A Krishna Kumar, Man-aging Director, the bank will try tomaintain the employee strength atcurrent levels even as it keeps expan-

sion programmes in mind."We will see the extent of people

who are retiring from the bank fromall levels. So to that (extent) we maylook at replenishing that stock. We willnot try to increase. Right now, we have2.23 lakh people working with us," Ku-mar said.

By March 2014, the employeestrength may fall to 2.2 lakh, he said.

"So we will try to keep the figureconstant between 2.2 and 2.23 lakhover the next few years. By reducingthe staff all of a sudden, the other ac-tivity does not function effectively. Butat the same time I should not increasemy staff so much that my productivityand my expense becomes an issue,"Kumar told reporters at a press confer-

ence.As per SBI, the head count reduced

by nearly 5,000 between March andDecember 2013. For the first ninemonths of the current financial year,SBI incurred Rs 17,225 crore towardsstaff expenses, up 35 per cent over thesame period last year.

SOURCE: PTI



P WEREM O


Over 40.72 lakh high value spenders are un-

der the scanner of the Income Tax depart-ment which plans to check potential eva-sion instances before the closing of the financial yearon March 31, reports PTI.

According to data, the department has informationon 40,72,829 persons who had made cash depositsamounting to Rs 10 lakh

or more in their savingbank accounts in the

current fiscal."With technical solu-

tions at the department'sdisposal, there is a lot of information that is readilyavailable to the authori-

ties. "We just want to sendthe across the messagethat nothing in clandes-tine and the departmentwould get to know everytransaction especiallyhigh value ones," a seniorI-T department officialsaid.

Amongst other informa-tion that the departmentpossesses is that40,40,396 people whopurchased mutual fundunits of Rs 2 lakh or more,

bonds or debentures of Rs 5 lakh or more, shares issued by companies of Rs 1lakh or more and bonds issued by RBI of Rs 5 lakhand above. The tax department's officialdata prepared recently also states that 15,55,220 per-sons purchased or sold immovable property worthRs 30 lakh or more; 20,61,443 persons made pay-ments of Rs 2 lakh or more in a year against theircredit card bills; people who received interest incomeof Rs 50,000 and above from banks and people whopurchased bullion or jewellery of Rs 5 lakh or more.The I-T department, sources said, has also send no-tices for non-filing of taxes to close to 12 lakh people

and entities even as many more such notices are in

the offing.With the enhancement of technology, a lot of elec-tronic data is now available to tax sleuths includingthat from the Financial Intelligence Unit (FIU) whichhas a specific task of looking for suspicious and high-value money transfer cases in the country's banking

and economic channels. The I-T department, by re-leasing such data, intends to bring all such transac-tions into the tax net before the closing of the 2013-14 fiscal on March 31 and garner as much revenue aspossible.

Failure to declare correct income and liability isnow taken on a priority basis in the department anddefaulters stand to be penalised upto 300 % on theevaded tax and prosecution in a court of law is alsoinitiated, the official said.


40.72 lakh high spenders inthe country under tax lens

The Bombay High Court will hear a fresh

PIL seeking transfer of a probe byMumbai police into the alleged Rs5,500-crore scam involving National Spot Ex-change Ltd (NSEL) and Jignesh Shah, to CBI onMonday. The PIL filed by activist Ketan Tirodkar argues

that since the scam has national and interna-tional ramifications only CBI has the necessary jurisdict ion to probe this matter. The case per-tains to alleged financial embezzlements byMulti-Commodity Exchange (MCX) and the Fi-nancial Technologies India Ltd (FTIL). The Economic Offences Wing (EOW) of Mum-

bai Police is currently probing the case. Thougha bunch of PILs were filed in the high court,

Tirodkar's PIL would come up for hearing today. The petition alleged those arrested so far likeNilesh Patel, a major borrower, and three em-ployees of NSEL, including Anjani Sinha, weremere pawns in the game while concerted ef-forts were made to project Shah, the allegedmastermind in the fraud as a "victim".

"This attempt to project the mastermind of thescam as a victim of conspiracy by his employeesand borrowers is an outcome of the pressure of vested interests in the corridors of power whohave been benefitted by the NSEL-MCX-FTIL tri-angular operations", according to the PIL.

During the market stint of MCX, NSEL andFTIL, Shah launched many international plat-

forms (Bourses and Trading companies) in tax-heavens, namely Mauritius, Botswana in Africa,Singapore and in Middle-east nations such asDubai and Bahrain, to take advantage of theDouble Taxation Avoidance Agreement [DTAA]signed by India as a member of a Consortium of multiple nations, the PIL alleged. The companygenerated free cash flow of 234 mln pound ster-ling during Oct-Dec, Tata Motors Chief FinancialOfficer C. Ramakrishnan said during a press con-ference here.


HC to hear fresh PILagainst NSEL and

Jignesh Shah today

T he government has pushed the sale of itsresidual stake in Hindustan Zinc and Balco tothe next financial year and hopes to meet a

investment target that's been more than halved byloading Indian Oil and BHEL shares and setting up aSE Exchange Traded Fund. The centre estimates Rs925 crore from disinvestment proceeds in 2014-15.

The disinvestment target for the current financialar was slashed by about 60 per cent to Rs 16,027re from Rs 40,000 crore, according to the Interimdget for 2014-15. So far, the exchequer has re-ved about Rs 3,500 crore from PSU stake sales, leav-about Rs 12,500 crore to be mobilised from selling

ares in Indian Oil Corporation, BHEL and the CPSEF. The government also expects to raise Rs 38,954re in the next financial year from communicationvices including proceeds from spectrum auctiond related charges.The Department of Telecom has recently concluded

the spectrum auction for radiowaves in the 900 Mhzand 1800 Mhz bands that lasted 10 days and fetchedthe government Rs 61,162 crore, of which Rs 18,296.36crore will flow to the exchequer within this fiscal, end-ing March 31. The targeted mop-up from the sale of the govern-

ment's residual stake in private companies, too, hasbeen lowered to Rs 3,000 crore in this financial yearfrom a budgeted Rs 14,000 crore, by way of selling AxisBank shares held by Specified Undertaking of the Unit Trust of India (SUUTI). "We are selling only apart of SUUTI stake in Axis Bank this fiscal. Whether theother part will be sold next year is too early to say," Fi-nance Minister P Chidambaram said.

The government expects to sell its remaining stakein Hindustan Zinc (HZL) and Balco in 2014-15. It soldmajority stakes in the two companies to the VedantaGroup during 2001-2003 and now holds 29.54% inHZL and 49% in Bharat Aluminium Company (Balco).

"The decision to divest stake in HZL and Balcostands. The process takes time and in our estimate theprocess cannot be completed before March 31," Eco-nomic Affairs Secretary Arvind Mayaram said, addingthat the receipts from the two stake sales will be bud-geted in the next fiscal (2014-15). The government also holds some stake in Larsen &

Toubro and ITC through SUUTI. It proposes to mo-bilise Rs 15,000 crore from the stake sale in HZL andBalco. The Central Public Sector Enterprises (CPSE)Exchange Traded Fund would consist of listed CPSEstocks.


Govt eyes Rs 39k cr from spectrum sale, Rs 37k cr from disinvestmentEconomic Affairs Secy Arvind Mayaram saysselloff of govt's remaining stake in Hind Zinc

and Balco will only happen next fiscal



P WEREM O


The Higher EducationForum (HEF) is thelargest on-line commu-nity of academic andrelated individuals striv-ing towards excellence

in higher education.

www.higehreduforum.org

The Free Press Journal is an 85-year-oldnewspaper based in Mumbai.

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161.90 6.09 9.30

1065 .95 5 .60 56.50

1795.45 5.60 95.25

280.85 5.38 14.35

887.80 5.04 42.60

111.50 -4.90 -5.75

515.10 -4.71 -25.45

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Name LTP % Change Name LTP % Change MARKETS

Stock Watch

BSE: 20,700.75 333.93

NIFTY: 6,155.45 107.10

CAC40: 4,381.06 40.92

NIKKEI: 14,865.67 552.64

FTSE: 6,838.06 174.44

Ambuja Cem

ACC

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MCX

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BULLION

Gold: 29,889 7

Silver: 47,467 19

OIL PRICE

Brent Crude: $ 109.84 0.46

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* All figures as on Friday,February 21,2014* The markets column shows closing and change for the week ending February 21,2014

F inance Minister P Chi-dambaram may dole out somesops while doing a tightrope

walk to keep the fiscal deficit undercheck when he presents the interim

budget for 2014-15 in Parliament todayahead of the Lok Sabha elections.

Along with the budget, he will pres-ent a vote-on-account to seek Parlia-ment's sanction for spending till July. The full Budget for 2014-15 will be pre-sented by the new government inJune-July.

By tradition, the interim budget doesnot contain proposals seeking to tinker

with direct taxes, nor are there any poli-cy announcements, although theremay be some sops for the commonman and sectors that need help. Earlier,Chidambaram had indicated he maytweak excise duties and service taxrates in the interim budget in an appar-ent bid to boost the economy, but hemay not pursue key reform legislationdue to lack of political consensus.

As per current indications, the fiscaldeficit this financial year is expected to

be less than 4.8 % of GDP estimated inthe budget, mainly on account of ex-penditure compression and higher re-alisation from the 2G spectrum auction.

To support the manufacturing sector,the Finance Minister may cut exciseduty for the auto sector, extend interestsubsidy schemes on bank loans to ex-porters, farmers, and offer tax conces-sions for poorer regions.

It would be interesting to see if Chi-dambaram continues with the super-rich tax in 2014-15 as well, but indica-tions are he may choose not to since itwould need amendment of the law. Inthe last Budget, the government im-posed a 10 % surcharge for a year(2013-14 fiscal) on people earning in-come above Rs 1 crore. It covered

42,800 individuals and entities. The minister is expected to use theopportunity to highlight the achieve-ments of the UPA-II government andfocus on how the government hasbeen able to contain the fiscal deficitand the current account deficit (CAD),notwithstanding the difficult global sit-uation.

Chidambaram may explain why eco-nomic growth slowed to a decade's lowof 4.5 % in 2012-13 and outline steps

taken by the government to put Indiaback on a high-growth trajectory.

Although the Central Statistics Office(CSO) has estimated a growth rate at

4.9 % in this financial year, Prime Minis-ter Manmohan Singh had said it wouldexceed 5 % once the figures were re-vised. Key reform measures such as theinsurance bill, the goods and servicestax (GST) and the direct tax code (DTC)are not likely to be taken up by the out-going UPA government for want of po-litical consensus. The government, sources said, will

come out with revised estimates for taxcollection in 2013-14 and projectionsfor the next financial year. The fiscal consolidation road map re-

quires the government to contain the

fiscal deficit at 4.2 % of GDP in 2014-15.Chidambaram had on several occa-sions said he had drawn a red line forthe fiscal deficit and it would not bebreached. The gap could be 4.6-4.7 % of GDP. The CAD, which was a major con-cern last year, is likely to narrow to be-low USD 50 billion, or 2.5 % of GDP. Ithad touched a record high of USD 88.2billion, or 4.8 % of GDP, in 2012-13.


A n inter-ministerial panel hasrecommended deallocationof 29 coal blocks of compa-

es such as Essar Power, Hindalco, Tataower and Jindal Steel and Power Ltd,d has suggested "no action at pres-t" for 30 other blocks.The IMG recommended dealloca-on of Chakla and Ashok Karkattaal blocks in Jharkhand allocated to

ssar Power; Tubed coal block inarkhand jointly allocated to Hin-

dalco Industries and Tata Power andGare Palma IV/6 in Chhattisgarh joint ly al loted to firms like JSPL andNalwa Sponge Iron Ltd, among oth-ers, according to a Coal Ministry doc-ument. While in the case of twocoal blocks -- Kotre Basantpur andPachmo in Jharkhand -- allocated to Tata Steel , the IMG has recommend-ed that the mines are "liable to bedeallocated" and the "decision (onthe same) to be taken by the govern-

ment in view of the court case," thedocument said.

According to a JSPL spokesperson,"Our company has challenged thepurported action of MOC (Ministry of Coal) before the High Court of Delhiwho vide its order dated 12.2.2014has ordered status quo with respectto coal block in question and thematter is subjudice.

"We have not been communicatedso far the purported cancellation of

coal block Gare IV/6 by MOC, GOI(Government of India) till date."

Reacting to the development, EssarPower official said: "We haven't yetgot any communication from thegovernment (on recommendationfor deallocation of Chakla and Ashok Karkatta coal blocks."

Hindalco Industries was unavail-able for comments.

SOURCE: PTI

FM to walk tightrope on Interim Budget

IMG for deallocating coal mines of Essar Power, Jindal, others

Ahead of elections, FinanceMinister P Chidambaram mayoffer sops to woo voters, cut

taxes to aid industry and project alower fiscal deficit while

presenting the interim budget for the coming financial year today

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21 February_EMPOWER B-School