www.krgconsultants.com

– Yatrik Vin– Yatrik Vin– Yatrik Vin(NSE CFO )(NSE CFO )(NSE CFO )

“ If you don’t , “ If you don’t , FAILFAILyou will never you will never

””SUCCEEDSUCCEED

“ If you don’t , FAILyou will never

”SUCCEED

Time to Give Back Time to Give Back

to the !to the !SOCIETYSOCIETY

Time to Give Back

to the !SOCIETY – Kailash R. Gandhi– Kailash R. Gandhi– Kailash R. Gandhi

September 2019 | Volume 1 | Issue 1 | News Letter

NEWS LETTER OF KRG

CONTENTS

2

Invitation to Write

Share your thoughts and opinion on following topics & we will publish it in our up-comming edi�on*

Taxa�on – Direct and Indirect·

Cost and Management Accoun�ng·

Industry trend·

Health·

Educa�on·* ( Subject to Editorial Discre�on)

Word Limit 1000 words

Email : info@krgconsultants.com

Submission Date by 30th September 2019

No�ce : The contribu�ons in KRG News Le�er are solely the views of the author & are in no manner to be directly associated with the views of the editor. Authors / Contributors are responsible for the authen�city of informa�on they provided in the ar�cle. The publisher do not accept liability for errors or omissions contained in this news le�er.All rights are reserved. No part of this news le�er may be reproduced or transmi�ed in any form or by any means, electronic, mechanical, photocopying or otherwise without the prior permission in wri�ng of KRG.

Letter from the Editor

Time to Give Back to the Society!

Road map ahead

KRG THOUGHTSA

India Equity Market View - Excess pessimism is an opportunity in disguise

TrendingB

Trends in Talent Requirement in the AI Age

Expert speaksC

“ If you don’t fail, you will never succeed”

Cover StoryD

Indian MSME Sector: A Way to Achieve 5 Trillion Economy

MSME sectorE

OEE (Overall Equipment Effectiveness)Mutual fund Taxation made easy

Technical SectionF

.............................4

.............................5

.............................6

.............................8

.............................9

.............................12

.............................16

.............................18

.............................20

KRG ConsultantsNRIHITASuper Procure Logistic SolutionNational Stock Exchange (NSE)

AdvertisementG.............................3.............................7

.............................15

.............................22

Tail

Ear

Tusk

FootTrunk

Body

Virtual CFO service provides your company with a high level of �inancial management and analysis normally only received if you hire an experienced Chief Financial Of�icer full time in your business.

We design costing system which includes set of forms, processes, control & reports for the businesses to aggregate & report MIS for revenue cost & pro�itability. Automation in

TMlogistic area (superprocure ), which not only reduces cost but also improves ef�iciency for our clients.

Strategic Pricing services helps corporate to determine pricing strategy for measurable & long term success.

Our teams ability to quickly identify problems, designed trailer made & viable solutions and implement them with sensitivity and precision helps organization for turnaround, operational and �inancial restructuring and insolvency services.

KRG perform audits to evaluate whether the internal controls are present and operating effectively, and if not, provide recommendations for improvement.

Virtual CFO Services

Design Costing System

Strategic Pricing and Growth Management

Corporate Restructuring and Valuation

Management Audit and Consultancy

It’s an

It’s a

It’s aIt’s a

It’s a

It’s a

Businesses are getting Bigger and ComplexKRG's Gap Audit gives Holistic View

It’s an Elephant

K R G (Knowledge Resource Group)Catalyst for your Business growth

NAVIGATING BEYOND NUMBERS

OUR SERVICES

KRG Strategy Consultants Private Limited 13, ShreyashBhavan, Jayprakash Nagar Road Number 1, Goregoan ( East) Mumbai - 400 063 Maharashtra, India

Email ID: k.gandhi@krgconsultants.com, Mobile: 9004527779

Website: http://www.krgconsultants.com

Special Incentives For First Few SME / Start-ups For Virtual CFO Services Please Contact Our office for further Details

3

We are a fervent and energe�c team of professionals with huge experience in financial sector and strongly kni�ed with a noble ambi�on to impeccably provide precise informa�on on Government policies, business prac�ces of micro, small, medium enterprises and valuable business recommenda�ons from highly regarded Charted Accountants, Company Secretaries and Cost Accountants, Senior Government Officials, Market Analysts and many more experts who have exper�se in a par�cular sector. The prospects of global economics today are considered by the produc�vity and success rate of start-ups and MSMEs in all the developing na�ons. The Prime Minister of India Mr NarendraModi and The Finance Minister of India Mrs NirmalaSitaraman recently expressed their vision and goal to develop India as a Five Trillion Economy in next five years. India is already the third largest economy in Asia and sixth largest in the world and it is the third largest start-up hub globally and is efficaciously sailing with unicorns of kind Flipkart, Ola, Byjus etc. In this fast-paced era of a million and coun�ng possibili�es, most of the entrepreneurs are well empowered with required financial resources, machinery and skilled human resources but they all have varied need for precise informa�on on Government policies, business prac�ces of various MSME's and business recommenda�ons to employ their resources to their op�mal capaci�es. Moreover, this kind of informa�on has become a ma�er of priority for the governments as well to analyse the impact of their policies on corporate world, as most of the governments today are func�oning as business facilitators than regulators and the success of corporate houses is a major concern for the respec�ve governments as they pave out employment opportuni�es and thereby enhance the average standard of living of ci�zens in the na�on. Furthermore this kind of informa�on is well sought a�er by professionals of kind Charted Accountants, Company Secretaries and Cost Accountants to keep themselves updated on dynamic government policies, business prac�ces adopted by various MSME's, recommenda�ons of their counterparts, so that they can come-up with innova�ve and viable business solu�ons. We dedicate our focus on gathering crucial data on various sectors and policies and their impact on business world, business prac�ces of MSME's. We analyse the gathered data in a professional manner and devote our op�mal capaci�es in developing clear and precise informa�on, keeping in view the informa�on requirements of policy makers, entrepreneurs and financial and management professionals.

As a beginner, we highly appreciate all the recommenda�ons from across the business communi�es, policy makers and our peers to enhance the quality of reports. We cherish all your contribu�ons as most valuable resources in emerging our brand which will in turn facilitate be�er and seamless flow of informa�on for all the stakeholders. We acknowledge the contribu�on of Mr. K.R. Reddy & all the Authors for this news le�er.

Kailash R. Gandhi

m tho erf Er de it tt oe rL“A journey of thousand miles begins with a single step"

That's exactly what we are starting now!

4

WELCOME TO THE NEW ERA OF FINANCIAL INFORMATION IN INDIA

Successfully running a niche management consul�ng (KRG = Knowledge Resource Group) ou�it which brings turnaround and add value to clients to create wealth. It gives me immense joy to see our clients growing through our support, which is contribu�ng either for improving Revenue or improving

margins. When I look back on my life as a whole, it is impossible for me not to feel blessed. I had the best educa�on with a fusion of studies across the globe, which added feather in my hat with degrees ala ACCA, CMA, Post Graduate degree in Management Consultancy, Bachelor of Social Law and Bachelor of Commerce. I hope that success is a journey and not a des�na�on and through my diversified and interna�onal experience in conglomerate like GE Money, Bank of Santander, ITC, Virgo Engineers Ltd. etc. in India and abroad, I have learned a lot.

General percep�on is that when it comes to giving back to the society, it is only the re�red people's duty. But, most of the people whom I met feel very sad for not ini�a�ng this at the young age itself. Because, they have many ideas and aspira�ons towards the society. However, they are unable to implement due to the age limita�ons. Having observed these things, I have conceived and decided to immediately start giving back to the society. And, this is the first step in that direc�on.

I always felt that financial success can be enjoyed best when you give back to society and therefore I played an ac�ve role in social life for community and profession with my career. While contribu�ng to social cause, I was fortunate to lead good team and Ins�tu�on; few of them are as under:o Chairman of WIRC, Ins�tute of Cost Accountant of India (ICAI) for 2017-18, o Chief editor of the WIRC bulle�n for Ins�tute of Cost Accountant of India (ICAI) for 2018-19o First Youth President of Bhayander District MaheshwariSangh (2012-15) o First Na�onal Leader of “Maheshwari Industrial and Trade Forum” (Flagship ini�a�ve of

Akhilbhara�ya Maheshwari Yuva Sanghthan, (2012-15)o Editor for Maheshwari Bulle�n.

These diversified experiences couldn't quench my thirst for “Purpose in Life” and s�ll had an urge for something more. I felt purpose in my life was missing and while doing the search for Purpose, I came across a beau�ful and meaningful concept called IKI-GAI.

IKI-GAI, Japanese secret to live a purposeful life. Origina�ng from the island of Okinawa once called the land of Immortals. These Okinawans lives by the concept called IKI-GAI. IKI means LIFE and GAI means value. This term refers to the things, which makes once life worthwhile. The 4 important components of IKI-GAI are the reasons for star�ng the newsle�er

· What you are good at?· What you love?· What the world needs?· What you can be paid for?

The answers to the above ques�ons took me to think of something which is everlas�ng and good in all aspects. I felt the urge to take a notch higher up every day and to adrenaline flow which I get once I complete an assignment which is challenging and enriching. I came up with the idea of crea�ng a pla�orm Mutual-Connect, which will be mother of all my ideas. Get all the great minds together to bring a KNOWLEDGE REVOLUTION which can bring IKI-GAI in everyone's life….

KRG Thoughts

“The Need To Connect The World And Keep Sharing The Knowledge”– By Kailash R Gandhi

5

OUR LONG TERM GOALS:

· Build Knowledge Bank and pu�ng knowledge to use

· Create Mutual-Connect pla�orm, which will become catalyst for growth of mankind· Up skilling people

We have already started working on the above goals and the very first step is this Newsle�er. We will publish the newsle�er �me to �me, which will focus on business management, psychology, social learning, best prac�ces, informa�on science & informa�on technology etc. Details of which is covered in the next ar�cle.

With this thought in mind, we have started this newsle�er, which is first step towards our goal. Hope you will like it and support it.

TOGETHER WE GROW !!!

By Dr. Smita K. Gandhi

KRG Thoughts

s rightly said by Swami Vivekananda…ALL POWER IS WITHIN YOU, YOU CAN DO ANYTHING AND AEVERYTHING…

As it is said small is always beau�ful but not all small things generate smaller returns. When man went to

moon, Neil Armstrong said, "a small step of a man is a giant step to mankind". That is the power of small.

The objec�ve of our newsle�er is to share all our experience and knowledge in making small projects

successful by providing the right guidance to small businesses to make them perfect in compliance. We help

in facilita�ng budding ideas conver�ng into big. We wish to build a unique pla�orm which would provide

unique solu�ons to their chronic problems. Ge�ng a right solu�on at an appropriate �me yet for affordable

cost could solve many perennial issues being faced by SMEs in the country. In order to bring that change into

reality, we are coming up with this knowledge sharing pla�orm which can highlight the issues, challenges

and opportuni�es in the country. This pla�orm can help in addressing all the concerns by taking it to the

suitable stakeholders such as policy makers, professional and industry bodies. Our mo�o is to empower

every individual who are in search of knowledge that can help realize their individual as well as team goals

without compromising on quality and compliance parameters.

6

CMA Kailash R. Gandhi a Fellow member of The Ins�tute of Cost Accountants of India and qualified ACCA (Associa�on of Chartered Cer�fied Accountant) from United Kingdom. Mr Gandhi pursued his Post Graduate Degree in Management Consultancy from Leeds metropolitan University, UK. Graduated in Bachelor of Social Law and also in Bachelor of Commerce from Pune University. With strong academic background, Mr Gandhi served several MNCs such as GE Money Bank of Santander, ITC etc. He accumulated over 18 years of experience in diversified sectors including Management Consul�ng, Capital Markets, Banking and Financial Services and Manufacturing. He is the expert in turnaround the sick SMEs into profitable, scalable and sustainable en��es.

Kailash R Gandhi (Principal Consultant at Kailash Gandhi & Associates)

Road map ahead

We are covering the following topics and sec�ons that can provide you the insights about any par�cular

subject.

Success story :

India is a land of great personali�es, who have marked their own Iden�ty in the field of science, literature,

music, religion, business, dance and music etc. India is a country with great ambi�ons of being a driver of the

global economy. As India is looking forward to leave its mark on the globe, its growth story is being driven by

a clutch of forward-thinking entrepreneurs whose success stories are mirroring the na�on’s aspira�ons.

Hence, we will be covering the success stories of individuals who can inspire the youth – the future of the

country – to pursue their own projects to becoming successful in life.

Knowledge Bank and expert analysis :

Informa�on is everything in the current smart world. Big data, data analy�cs, ar�ficial intelligence, virtual

reality, robo�cs, automa�on, machine learning, internet of things, cloud compu�ng, digital technologies

are going to rule the modern world. Therefore, we are going to provide you the right knowledge on the latest

technologies and expert analysis on various topics that can influence the globe.

“When everything seems to be going against you, remember that the airplane takes off against the

wind, not with it” — Henry Ford

It may not be a cakewalk for any entrepreneur as they may experience ups and downs. It does not ma�er if

you are a first-�me entrepreneur or a serial entrepreneur, success and failure will alternate for sure. We are

there to help you with �mely guidance and appropriate content to grow your business, so that the journey

will be smooth.

Current trends in Industry :· News covering reforms and regula�ons· Impact analysis on industry· Micro and macro effect on economy

Tech Zone :This sec�on will provide you the informa�on on the various financial and technical aspects of various subjects and its pros and cons.

Health and Fitness :Health is wealth. It is the most valuable asset which every human being should possess, be it physical health or mental health. Money can buy everything for you except GOOD HEALTH. Money does contribute it in maintaining fitness but, your habits that follow PATHYA and avoiding APATHYA and staying happy are the key things to maintain good health - physically and mentally.

Dr. Smita K. Gandhi (Vice Principal at Ram Ratna International School)

She did her BAMS degree in medicine and also holds a diploma in Bachelor of Educa�on. Graduated in medicine, Mrs Gandhi also developed interests in Educa�on & General Administra�on field. 16 years of total experience in which 9 year experience in educa�on field itself.

7

he current market sen�ment is of pessimism and panic. Thebreadth of the market has collapsed. TTypically such phases are opportuni�es in disguise if we go back to the past – whether the Lehman

crisis (of 2007), Euro crisis (of 2012) or short-lived demoni�sa�on period (end 2016) - whenever

markets have sharply corrected on back of poor sen�ments. Eventually, they have proved to be great �mes

to invest.

There has been exaggerated reac�on in mid-small cap side of the market leading to bargain valua�ons –

many stocks are available at 8-10 x their sustainable cash flows or at at 3-5x earnings. Lot of nega�vity is built

into the price. So long there is no existen�al threat in companies or Balance Sheet stress, one may just need

to hold on and go through the downcycle. Such stretched phases do mean revert as poten�al of many

business/companies are far higher than the current state of affair.

Till last week, market was clearly becoming impa�ent on govt hopes to s�mulate the economy. And then

finally, message from Finance Ministry came that we care. Major announcements were made by the

government to boost the Indian economy. Significant measures include a) rollback of higher surcharge on

capital gains tax for FPIs (trusts), (b) repayment of pending GST refunds to MSMEs within 30 days and future

refunds in 60 days, (c) addi�onal liquidity support of Rs 200 bn to HFCs by the Na�onal Housing Bank, (d)

repayment of 75% of arbitra�on funds in contractual disputes between government/CPSEs and private

en��es, (e) immediate recapitaliza�on of PSU banks and (f) launch of repo benchmark-linked interest rate

products.

Besides, the RBI transfer of reserves to the government is a relief to fiscal situa�on. Based on the Jalan

Commi�ee's recommenda�on, the RBI will transfer about Rs520bn in addi�on to the surplus transfer of

Rs1.23 tn in Fy20. The government will gain around Rs580 bn from the RBI compared to Fy20 budget

es�mates. This will help to some extent in bridging an es�mated Rs1.5 tn of shor�all in GST revenues even as

the fiscal con�nues to be under some pressure due to weak tax revenue collec�on.

The first of series of measures (FM to meet subsequent week as well for GST, real estate reforms, etc) will

help improve market sen�ment and demand to some extent. What is needed is significant cut in interest

rates and s�mulus in housing & infrastructure that should hopefully reverse the current business slow-down

going forward. We expect interest rate easing cycle to prolong and can be anywhere close to another 75-100

bps. While the monetary policy will be suppor�ve of growth, this has to be followed by elimina�ng liquidity

stress in the system and transmission by banks to the corporate sector.

Auto and Real estate sectors on the other had have slowed down considerably and is a cause for worry. We

do not expect immediate reversals across these sectors and things can get worse for autos/real estate

before it gets be�er. However, if we go by the recent results, things are not gloomy everywhere, recent

results of private banks, cement, large format retail stores, home tex�les, liquor & beverages segments,

paints & pipes, govt dependent infra companies have shown posi�ve trend.

“India Equity Market View - Excess pessimism is an opportunity in disguise ”- By Dhiraj Sachdev

TRENDING

8

While measures are being taken for a course correc�on to arrest domes�c slow-down, global trade war

issues con�nues to weigh on the markets. Riskin the near to medium term for markets include global

economic slowdown being aggravated by escala�on of trade war between China and the US and if it gets

stretched into a full-fledged economic war.

Nevertheless, in the context of the fact that globally about $13 trillion is earning nega�ve interest yields,

India has an opportunity to a�ract overseas capital and investors due to rela�ve high interest rates. This

capital can be used for Infrastructure & other business investments as FDI besides passive investment in the

form of FIIs.

Amidst nega�ve noise and pessimism, Indian equi�es post correc�on offers a�rac�ve investment

opportunity, especially in Mid-small cap side of the market. Remember, point of maximum pessimism is the

point of maximum returns. Stock selec�on and pa�ence however remains the key to investment success.

Ar�ficial Intelligence (AI ) has led to changes in employment demand and talent requirements. It has

led to changes in employment structure by gradually replacing manual labour in certain jobs that

involve rou�ne ac�vi�es which can be undertaken using a computer so�ware. Nevertheless, AI

does not have the ability to replace certain posi�ons within the next decade. AI will not replace jobs posts

that require a high level of communica�on, logic, or innova�on to cope with changing environments in the

near future.

Historically, technological advancements have been characterized by the crea�on of new employment

demands with certain jobs becoming obsolete. This was witnessed during the first industrial revolu�on that

led to mechaniza�on, which led to the dwindling in the demand for certain types of manual labour.

However, technical personnel are the backbone of any technological revolu�on. Therefore, they would

con�nue playing a vital role in the long-term growth of AI. AI will also lead to certain changes in employment

demand, which will lead to the crea�on of new requirements for talent training and capabili�es.

The first trend in talent requirements in the age of AI would be an increase in demand for talent and skills

related to AI technologies. In addi�on, the demand for skills in Machine Learning (ML) technologies would

increase. A�er the development of AI technologies to a certain level, there may be an increase in demand

Dhiraj Sachdev (Managing Partner & CIO, Roha Asset Managers LLP)

EXPERT SPEAKS

“Trends in Talent Requirement in the AI Age” - By CMA Dr.V.V.L.N. Sastry

9

He holds a degree in Commerce (B.com) from Mumbai University, is a qualified Chartered Accountant (ACA) from ICAI and a Cost & Management Accountant (CMA) from ICMAI Ins�tute along-with Diploma in Foreign Trade Management (DFTM) from Mumbai University.Ranked among India's best fund managers by Outlook Business & Value Research, DhirajSachdev was a Senior Fund Manager at HSBC Global Asset Management. A leader who leads by example, his 22 yearlong industry experience saw glory when he delivered long term performance of 29% CAGR for 5 years for HSBC Mid & Small Cap Fund.

Meister, Jeanne. Ten HR Trends In The Age Of Ar�ficial Intelligence. Forbes, 8 January 2019. Retrieved from:

h�ps://www.forbes.com/sites/jeannemeister/2019/01/08/ten-hr-trends-in-the-age-of-ar�ficial-

intelligence/#64fded733219

He, David, Michael Guo, Jerry Zhou, and Vanessa Guo.The Impact of Ar�ficial Intelligence. 2018

Bersohn, Diana and McCree.3 steps to reimagining your tech workforce in the AI age.CIO, 26 July 2018.

Retrieved from: h�ps://www.cio.com/ar�cle/3293001/3-steps-to-reimagining-your-tech-workforce-in-

the-ai-age.html

for talent in higher-level technologies which include robot training and supervision in addi�on to exterior

design of robots and personality designs. These talents require people with strong academic background

and research capabili�es. People who can fill these posi�ons would be required to have doctoral degrees in

the areas of computer science, electrical engineering, or any other related scien�fic qualifica�on.

Generalists with both technical and so� skills would be required to fill posi�ons in technology applica�ons.

People with interdisciplinary background and all-round capabili�es will command a premium over others.

For instance, the employees who fill the technical posi�ons may be required to have programming skills, in

addi�on to the ability to create a business models. They would also be required to understand business logic

and cooperate with players in different areas related to the applica�ons of AI in business opera�ons.

Further, AI would lead to replacement in certain low-paying jobs in the financial industry. These include

back-office and suppor�ng job posts, front-office bank tellers that engage in document processing and data

analysis, insurance underwriters and similar jobs in the financial industry. However, the evolu�on of AI

technology may also enable AI to have the ability to replace certain well-paying jobs that are not highly

mechanical but depend on historical experience or judgment. As such, AI may replace lawyers and doctors

in the future.

AI would not replace jobs that depend on communica�on and innova�on. It would be difficult for AI to

replace employees who know how to communicate, understand issues, and iden�fy opportuni�es in the

dynamic industry space. These skills are not acquired through conven�onal educa�on or voca�onal

training. AI would help in complemen�ng the skills of these employees to improve their efficiency. As such,

AI would lead to an increase in the demand for people with crea�vity, complex problem-solving skills, and

emo�onal communica�on talents.

Thus, it can be concluded that AI would create a struggle between machines and humans. Even though AI

would replace jobs, it would also create new job opportuni�es for people who possess talent that would

enable them to create, apply, and op�mize technologies related to AI.

A graduate in technology, with a postgradua�on in informa�on systems and management from University of Roehampton, London. He did his Fintech from Oxford University and Execu�ve Program in Digital Strategies from University of Cambridge. Dr.Sastry also holds M.B.A, LL.M, ACMA, Ph. D in Banking, Ph. D in Cloud Compu�ng, Ph. D in Financial Management, and Ph. D in Criminal Jus�ce from Walden University, U.S.A. Sastry, brings over 20 years of experience in technology, banking, investment banking and corporate laws.

10

CMA Dr. V. V. L. N. Sastry

11

e take deep honour in presen�ng the financial insights provided to our group by highly admired Wauthority and Group Chief Financial Officer of Na�onal Stock Exchange of India Limited, Mr. Yatrik Vin.Mr. Yatrik Vin is closely associated with NSE since its incep�on and is execu�ng his

profound exper�se in delivering excellence as a part of core leadership team. Furthermore, he is successfully leading the Corporate Strategy func�on at NSE and is contemporaneously a part of various commi�ees and task forces both internally and externally.

Mr. Yatrik Vin is an alumni of pres�gious R. A. Podar College of Commerce & Economics, Mumbai and hold a track record of academic excellence in commerce at post graduate level from the Mumbai University. He is a fellow member of the Ins�tute of Cost Accountants of India and had also served on the Accoun�ng Standards Board (ASB) of Ins�tute of Chartered Accountants of India. Addi�onally, he is also an alumni of the pres�gious Kellogg School of Business, USA.

His name has been recorded in the ROLL OF HONOUR 2015 of top 100 CFOs of the country by CFO India. He was awarded with CFO of the year - 2014 award by “ABP News BFSI Awards” and is recognized as the Most Influen�al CFO of India by CIMA, UK. On the academic front, he is associated with various Business Schools and Educa�onal Ins�tu�ons of high repute and is passing his vast cognizance to the student community in the capacity of Visi�ng Faculty in Finance and Management Accoun�ng, since last two decades. In an exclusive interview, Mr Vin opened his heart to inspire the young professionals and entrepreneurs who are dreaming to change the country with their innova�ve ideas. Edited excerpts"

COVER STORY

“ If you don’t fail, you will never succeed”

12

Childhood is a beau�ful memory for everyone. Could you please share us your childhood memories and

what you wanted to become at that �me?

More than me, my mother had a vision carved out for me which was that of successfully running and

managing an organiza�on as a leader. She always believed in me and always encouraged me to go ahead

with what I would love to do rather than what the others think I should do.

While I was growing up, I have had numerous inclina�ons towards what I want to be at different stages of

life, from a poet to an ar�st to an interior designer as well. But I am a firm believer in des�ny and I feel I was

gi�ed with the maturity to understand that one needs to work towards his/ her goal and the rest will chart

its own way.

Tell us something about your family – mother, father, wife and children? What do you feel when it comes

to the role of the family in an individual's success story? Who is the most admiring and suppor�ve family

member in each of your career path?

We are a very closely knit family. Born and raised in Mumbai in a Gujara� joint family setup; I am younger of

the two siblings. With deeply rooted culture and values, our family was greatly influenced and inspired by

Gandhian philosophy. In fact my grandparents wore self-kni�ed Khadi throughout their lives. We had a

“Charkha” at our home as well. As a child I was raised in that atmosphere which I think during my forma�ve

years influenced me a lot.

In terms of family educa�on, most of my family members have their careers either in Law or Medicine,

Pharmacy or engineering with me as an excep�on to have made my career in Finance. While my wife is a

Lawyer by profession; my son has chosen to follow my footsteps to pursue his professional degree in

Finance.

I strongly believe that family plays an important role in an individual's success. Being raised in a very forward

looking family with complete equality and democra�c environment at home, I developed the confidence to

make independent decisions and face the challenges at an early age.

Did you ever think about pursuing the career that you are currently in and what prompted you to select

this profession?

In retrospect, as I see, as a child I was always very energe�c, enthusias�c and upfront about everything that I

did. Be it par�cipa�ng in various compe��ons at school / college level, organizing fes�val/community

events, conduc�ng team events, doing social / community work etc. I think that slowly brought out the

posi�ve confidence and Team playing and Leadership quali�es of mine. While I can't relate any specific

reason choosing accountancy as a profession but yes since my school days I was always gravitated towards

Finance as a subject and more par�cularly Economics. Actually, though by training I am a professional

Accountant, my mind and heart always swayed by Economics. Working with two of the Tex�le giants and

then with the Engineering giants, I was missing my original passion for Economics. This drove me to take a

lead in the Stock Exchange business almost 19 years back now. This is especially since the key economic

purpose of any Stock Exchange is be catalyst in the economic growth of the country through right

facilita�ons for mobilizing savings on one hand and capital forma�on on the other hand. It's completely an

evangelist kind of role that you play. This a�racted me a lot.

What are the major challenges you have gone through in life and how did you overcome them?

13

Challenges are part of everyone's life. I strongly believe that it provides a great opportunity to realize one's

true poten�al and skills and also the value principles with which one operates. It is very important to remain

poised and focused on the goals. Never lose your self-Belief.

How long you have been in this profession and what is your life's ambi�on? At what stage you are

standing now towards achieving your goal?

A�er successfully comple�ng three decades, I can say that my experiences have made me what I am today. Apart from enjoying my work, I have learnt a lot from every industry that I have worked in whether it was tex�le, engineering or my current role with NSE. Indeed, it has been a very gra�fying journey. I consider myself really fortunate that I have had the opportunity to work not just with very large Business Groups, but what are ins�tu�ons of our country. These opportuni�es, exposures and well-rounded experiences have helped me achieve my goals and grow as a person in life.More than my ambi�on I would say the 2 important things that I have in my bucket list are to work passionately and help put NSE on a different pedestal, globally. Second being an educa�onist, contribute to the society (especially the under privileged students) in their educa�on and career.

Who (or what) is your inspira�on and why?

My parents have been my inspira�on always. While growing up, I have seen them toiling for us to ensure we do not face the similar hardships they did. I have learnt a lot from them just by observing them day in and day out. They exemplify honesty, hard work, perseverance, discipline and devo�on. I would say they have always permi�ed me to do whatever we wanted and also provided relentless support and encouragement. I look up to them as they bestowed me with many things that I will surely treasure forever. Outside my family, I deeply admire two great Indian personali�es - LataMangeshkar and Sachin Tendulkar. More par�cularly I admire their devo�on to work and their pursuit for excellence. They are an epitome of humility at the pinnacle of success. I strongly believe that apart from the talent, if you have a deep sense of devo�on to your work coupled with high perfec�on; nothing is impossible in life.

Mo�vators always say that the 'failures are the stepping stones for a success' in life. Do you agree with it? If so, why?

Completely without a doubt. If you don't fail, you will never succeed. Failure makes you value success even more, makes you stronger with every step and gets the best out of you in life. One should never be shy of failures, but consider it as a stepping stone for what lies ahead of you.

What is your outlook on Indian economy for the next 5-10 years? Do you suggest any changes for a be�er India?

The innate strength of the Indian economy con�nued to be robust with sustained GDP growth rate of ~7% and the Indian economy con�nued to retain its status as the fastest growing major economy of the world. This is more par�cularly on the backdrop of poli�cal stability, strong fundamentals such as low Current Account Deficit and rising forex reserves, low infla�on etc. as compared to other major emerging market economies. The IMF projected that the Indian economy will grow at a rate around 7.5% in FY21. With strong economic fundamentals, India con�nues to be an a�rac�ve des�na�on for investments. The advanced economies, other than US, are yet to recover from the global financial crisis, although the

14

medium term outlook remains posi�ve, in contrast to the EMEs, where it is subdued. The sluggish rate of global economic growth so far has warranted successive downward adjustments to forecasts the world over, raising concerns of a 'secular stagna�on'.

Against this backdrop, however, the outlook for the Indian economy looks promising with strong

macroeconomic fundamentals and poli�cal stability are expected to bolster the investment climate, with a

significantly posi�ve impact on the capital markets.

What is the message you would like to give it to the young professionals and budding entrepreneurs?

Stay focused and be relentless. Don't give up easily. As I men�oned, mistakes and bad decisions are part of

an entrepreneurial journey. A true testament to a good entrepreneur is to quickly realize the mistake,

introspect and adapt to develop onto something else. Be fearless and keep innova�ng.

As a Cost accountant, what message you would like to give to the CMA professional or Ins�tute.

I think today's genera�on is quite self-assured and self-imposed. This is an era of innova�on and

informa�on. Today, Management Accountants have enormous opportuni�es to pursue than what was

available to some of us may be 30 years back.

To my understanding, professionally, Management Accountants can be the true partners to the business.

Generally, Management Accountants tend to possess most valuable data surrounding business. Also, by

training Management Accountants are very analy�cal. They can very meaningfully contribute to the overall

growth and profitability of the business. Furthermore, being technology savvy helps enormously.

Also, remain commi�ed, be ready to do that extra hard work and remain humble.

Remember: “In life, there is no short cut to success.”

15

REDUCE LOGISTIC COST

SuperProcure (SP) is incubated at IIM-Calcu�a with a vision to make Indian enterprises globally more compe��ve by transforming logis�cs & supply chain opera�ons.

1. 2-8% Freight cost saving by freight e-nego�a�on & reaching more suppliers.2. 60% Drop in processing �me. Improving employee produc�vity by digitaliza�on and automa�on of basic func�ons such as communica�on, emails, records & reports.3. 10-15% Cost saving from visibility, date driven decision making Coordina�on, approvals, data, planning and op�miza�on.4. Improving vehicle u�liza�on.5. 10% �me saved for sales team by automa�on of post order process management.6. Improve customer service & re-order probability with visibility of In-transit tracking.7. Immediate material delivery confirma�on and avoid customer payment issues.8. Dashboard, Real �me no�fica�ons & MIS for decision making and early predic�on of exc.9. 100% Audit compliance with historical records.10. Improve trust and human interac�ons

For More information and demo, please contact

9004527779 / 9433522386

• Benets

n the union budget of 2019, Finance Minister, Government of India claimed to achieve an ambi�ous Itarget of making India a USD 5 trillion economy, world's third largest economy a�er USA and China.

Although the fiscal year by which India will be able to a�ain this target has not been clearly specified and

remained open ended, but the vision of the Prime Minster of India in different global economic forums

indicates it to be the fiscal year 2024-25.

Now the ques�on of how India will accomplish this target and when it will become the third largest economy

of the world arises. Sta�s�cs show that India can achieve this with a uniform growth rate of approx. 11% for

upcoming years. India's GDP at current prices has grown at a compound annual growth rate of 11.79% in the

last decade. It was increasing enormously in the years between 2010 and 2013 by 19.9%, 14.4% and 13.8%

respec�vely and got slowed down a bit in 2017 and 2018 to 11.3% and 11.2%. Other than this, several other

aspects such as slowdown in different sectors like automobile, real estate etc., rising unemployment rate,

US-China trade war, etc. may snag and hamper the growth rate to a certain extent in the coming year.

However, India can reach its vision with the help of Indian micro, small and medium enterprises (MSMEs)

sector. As it is popularly said, “Believe in li�le things because it is in them that your strength lies.”

The MSME sector in India is the pillar of the domes�c fiscal arrangement and has con�nuously acted as the

wall for the Indian economy, providing it flexibility to absorb global economic shockwaves and difficul�es.

With around 6 billion units throughout the geographical stretch of the na�on, MSMEs contribute around 6 %

of the manufacturing GDP and 24 % of the GDP from service ac�vi�es as well as 33 % of India's

manufacturing output. They have been able to provide employment to around 120 million people and

contribute to around 45% of the overall exports from India. The sector has consistently maintained a growth

rate of over 11%. About 20% of the MSMEs are based out of rural areas, which indicates the deployment of

significant rural workforce in the MSME sector and is an exhibit of the significance of these enterprises in

promo�ng sustainable and inclusive development as well as genera�ng large scale employment, especially

in the rural areas.

Worldwide Trends of MSME Sector indicates its relevance as well as prominence in backing the progress of

an economy. In development of the Philippine economy, MSMEs help reduce poverty by crea�ng jobs for

the country's growing labour force. They fuel economic development in rural and distant areas. In Japan,

MSMEs employ 70% of the wage earners and contribute 55% of the value added. In Thailand, MSMEs

employ 60.7% of the popula�on while contribu�ng 38% to the GDP. While in China,they contribute to over

68% of the exports and in the last 20 years it has created more MSMEs than the total number of SMEs in

Europe and the US combined.

The Government of the above-men�oned countries facilitates the func�oning of the MSME sector. The

Government of India should also focus on the implementa�on of effec�ve policies for MSMEs in order to

Indian MSME Sector: A Way to Achieve 5 Trillion Economy- By Kanakraj Dubey

TRENDING

16

help this sector develop in India by following the framework and structure followed by these countries.

Majorly what this sector requires is capital and for this the Government should opt some alterna�ve lending

models to provide capitals to this sector. In the past few decades, public sector banks' (PSB) share in lending

to this sector has gone down alarmingly. This has added to the distress of the small and medium businesses,

which are already having a hard �me due to lack of capital.

However, several non-banking financial companies are coming up to the relief of MSMEs, allowing them to

access credit effortlessly in order to carry out smoother opera�ons. Thanks to their adop�on of modern

technology for loan processing and credit underwri�ng, NBFCs are able to distribute loans to MSMEs within

days.

The Government can only reach its financial inclusion goal if it provides the right financial and structural

support to the small and medium businesses. Recently, the Government also announced a number of

measures aimed to make access to credit easier for MSMEs, while reducing their cost of funds at the same

�me. Some of the major offerings include sanc�on of loans of up to Rs.1 crore within 59 minutes, a two

percent interest subsidy on loan payments by MSMEs, and a five percent discount on interest on loan

payments by exporters.

Addi�onally, hundreds of technology centers will be established across the country to provide support to

small and medium businesses. With the proper implementa�on of these measures, the MSME sector in

India is expected to go through a paradigm shi�. Simultaneously, this will help the country make substan�al

progress in its journey towards a financially inclusive economy.

The Government must provide technological advancement and training to the workforce of MSME to

increase their produc�veness, input-output ra�o and quality of manufactured products and services.

Marke�ng of products and services offered by these MSMEs will also play a crucial role in crea�ng demand

and increased acceptance of output.

Addressing to the need and demands of this sector and working upon them in a �mely manner will help

India, a growing economy to make a pathway for successful achievement of its visualiza�on of USD 5 trillion

economy soon.

India should look upon to the economies of the world who get promoted by developing their MSME sector.

And for a developing country like India, MSMEs play a vital role in more than a single way. From crea�ng jobs

at the grassroots level to aiding the GDP growth, they are the pillar of the Indian economy. More

importantly, they are helping India become financially inclusive, which in turn is impera�ve to the socio-

economic development of a country in the long run.

[Source: CII and Business standard]

17

He is a CA aspirant, who is in a pursuit to become an economist.

Kanakraj Dubey

OEE is one of the lean manufacturing tools & considered as manufacturing metric which company should

take into considera�on while checking the performance of the Company. It's a reality check

It Considers three factors while calcula�ng overall performance of the company

1) Availability of Machine

2) Quality of Product

3) Performance

1) Availability - It is calculated as Run Time to planned Produc�on �me .

a) Availability = Run Time/ Planned Produc�on Time

It takes into account all events to stop planned produc�on long enough where it makes sense to track a

reason for being down.

b) Run Time = Planned Produc�on �me – Stop Time

Stop Time can be in form of – Non Availability of Raw Material, Machine Break down, Labor Shortage or No

Electricity etc.

2) Quality of the Product – What if we just speed up the produc�on at the cost of Quality of Product surely It

would have an adverse impact on the Product as well as Goodwill of the company. So the calcula�on is as

follows

Quality of Product = Good Produc�on/Total Produc�on

a) Good Produc�on = Total Produc�on – Bad Produc�on (Defects, Spoilage, Damaged etc)

3) Performance –It's basically Net Run �me to Run Time so calcula�on is

Performance = (Ideal Cycle Time * Total Count) /Run Time

Ideal Time is it takes into Considera�on anything that keeps the manufacturing process to run less than its

op�mum speed. If the Percentage in Performance goes beyond 100% then the Ideal Time is set high

So OEE = Availability * Quality *Performance

So here is an Example to calculate OEE

OEE (Overall Equipment Effectiveness)- By Darshan Vora

Technical Section

Shi�

Break

Down Time

Ideal Cycle Time

Produc�on

Reject Products

8 Hours (480 Mins)

1 Hour (60 Mins)

65 Mins

1 sec

18000 pcs

1200 pcs

18

So the Calcula�on would beAvailability -: Run Time/ Planned Produc�on Time1) Planned Produc�on Time -: 480-60 =420 mins2) Run Time -: 420 – 65 = 355 Mins

A) Availability -: 355/420 = 84.52%Quality -: Good Produc�on/Total Produc�on1) Good Produc�on :- 18000-1200 = 16800 pcs2) Total Produc�on = 18000 pcs

B) Quality -: 16800/18000 =93.3%Performance :- (Ideal Cycle Time * Total Count) /Run Time.

C) Performance :- (1*18000)/ (355*60) =84.5%OEE = Availability* Quality * Performance OEE = 84.52%*93.3%*84.5%OEE -: 66.66%

If you look at Individual Performance of all the three factors its shows good performance but when you combine all the three factors there is a considerable varia�on.

The Benchmark considered in World for OEE is :

1) Introduce No Kit No Cut Concept

2) Plan your Maintenance Properly specially Machines that are old

3) Make Sure your Value Stream Mapping is Proper

4) Keep DG set as subs�tute

5) Don't use degraded Quality Raw Materials which can harm the Product just the sake of Cost Cut

6) Improve Asset Environment

7) Make Produc�on Plan by understanding factors like Set up Time, Customer Requirement plan, Scrap

genera�on because when you change a set of One product to another some may take less set up

�me & some may take more similarly Genera�on of Scrap also varies .

Management should use OEE to understand its actual performance & focus on improving their OEE by

benchmarking, reviewing planning & execu�ng ways to Improve OEE in regular intervals.

Sr No Par�culars Remarks

1 100% Perfect

2 > 85% World Class

3 > 60% Typical

4 > 40% Low

Some Sugges�on if the OEE is below 85%

He is a prac�cing Cost Accountant. He was Co-Opted Member of WIRC ICAI (CMA) 2017-18 , Ex Editor at E- Vidyarthi Bulle�n 2013-14. Played football at DSSO Level, Won many Inter & Intra College Compe��on, Faculty for CMA Founda�on Course 2017-18, Cer�fied Grephologer.

Darshan Vora

19

Ø Equity Oriented Mutual FundsEquity oriented mutual fund means a mutual fund specified under sec�on 10(23D) of Income Tax

Act and which invests 65% or more of its total proceeds in equity shares of a domes�c company.

Investments in Equity Oriented Mutual Fund are taxed as follows:

Taxa�on Policy on Mutual Fund Industry

• which pools money from number of Investors, thereby leveraging their combined inves�ng power;

• having common investment objec�ve.

• and ul�mately invests in Equi�es, Bonds and other Financial market instrument with an objec�ve of

earningreturn.

The primary aim of any investment is to earn a return on the money invested, either in the form of Dividend

or through Capital Gain. Inves�ng in Mutual Fund may generate profit for the assessee, and where there is

Profit there is a pre-assumed implica�on of Taxa�on (Mitrooon).

Therefore it becomes important to understand implica�on of Taxa�on on Mutual Funds.

The tax treatment on Mutual Fund broadly depends on the �me for which you stay invested in the

respec�ve schemes. This is holding period of mutual funds.

Mutual Fund Taxation Made Easy - By Prasanna G. Totala.

Mutual Fund is a Platform

Analysis of Holding Period

TECHNICAL SECTION

20

Less than12 Months

Short Term GainMore than12 Months

Long Term Gain

Equity Fund /BalancedFund

Less than

36 MonthsShort Term Gain

More than36 Months

Long Term Gain

DebtFund

In case of Systema�c Investment Plan (SIP) every investment is considered as individual investment and

are Taxed accordingly.

LTCG can be adjusted against basic exemp�on limit only a�er adjus�ng other income. In other words,

from basic exemp�on limit first income other than LTCG is adjusted and the remaining balance in

exemp�on limit is being u�lized for LTCG. This benefit is available for resident Individuals.

• Eye Opener:

Long Term CapitalGains

(Below 1 Lakhs)

10%Long Term Capital

Gains(Above 1 Lakhs)

17.472% (15% Tax + 12% surcharge + 4% cess)Short Term Capital

Gains

As per Sec�on 10(38) LTCG arising from sale of Equity Shares or Units of Equity Oriented Funds are not chargeable to tax in the hand of any person.

LTCG on equity funds were not chargeable to tax in the hands of any assessee �ll the fiscal year

A.Y2018-19. However, Finance Minister inserts a new Sec�on 112 A in Budget 2018 proposed that10%

tax will be levied on Equity shares or Units of Equity Oriented Funds if Long-term capital Gains is more

than Rs. 1 lakh without the benefit of indexa�on. Capital Gains will be exempt in the hands of Exis�ng

Tax Payers up to 31st January 2018

Debt mutual fund scheme invests significant propor�on of its total proceeds in fixed income securi�es

including bonds and debentures. They are categorized as "Non-Equity Mutual Funds" with less than

65% of their por�olio invested in equity and equity related instruments.

Ø Debt Fund

21

• Eye Opener:

Long Term

Capital Gain

Short Term

Capital Gain

• 23.296% (20% Tax + 12% Surcharge + 4% Cess)

• Indexa�on * Benefit Available

• As per Income Tax Slab Rate you fall under.

NRI's are taxed with 10%tax rate on unlisted funds without indexa�on benefit Every Mutual Fund investment in Equity Oriented Fund does not qualifies for Tax Exemp�on u/s 80C of Income Tax Act. Equity-Linked Savings Scheme (ELSS) is a type of equity fund and the only mutual fund scheme which qualifies for a tax deduc�on under the Sec�on 80C of The Income Tax Act.

**Indexa�on is a process by which the cost of acquisi�on is adjusted against infla�onary rise in the value

of asset. For this purpose, Central Government has no�fied cost infla�on index. The benefit of indexa�on

is available only to long-term capital assets.

Source: www.incometaxindiaefiling.gov.in

Prasanna G. Totala.

He is a CA Final Aspirant and currently working as an Ar�cle Assistant. Academically he has completed his B.COM and pursing LLB.

• Eye Opener: