WE TUBE

INSOLVENCY AND
BANKRUPTCY CODE,
2000

4/10/20 1
 Prof explained us the meaning of ‘code’. A code as per the Black’s Law
dictionary is a collection of compendium of laws. Which he further explained
that Bankruptcy Code is a comprehensive compilation of laws, rules and
regulation. No single umbrella legislation governs the IBC instead there is a slew
of legislation governing the legal framework (CA, SARFAESI, DRT, NCLT, etc.)
 Then he further explained the needs of IBC, i.e., what makes the necessity of
introducing the IBC. In the previous Indian Bankruptcy regime was having
multiple judiciary forum which lack clarity. Further, the decisions taken were
often appealed, stayed and overturned by judiciary forum. Lack of Credible
information regarding the assets, its indebtedness and the security of same make
the process of liquidation longer and critical.
 Further, he also explained interest of unsecured creditors such as Bond Holders,
foreign creditors or Institutions other than banks and NBFC were not
entertained. He also explained the reason for introducing the this code with an
example of Kingfisher Airlines, at times, the airline was the second largest in the
country, was grounded in 2012 with debts of USD 1.5 Billion. However, it was not
the case till February, resulting long suffering creditor banks got nothing into
their hands.
4/10/20 2
 He further added the average time taken to resolve the process of Insolvency in India in
approx. 4-4.5 Year vis-à-vis to 0.8 years in Singapore and 1 year in London. The data
itself shows that how long the procedure is and why it required a change in it. Also the
recovery rate of debt is just 20% in India.
 The prof further explained the pitfall and tactics under the existing regime which further
required a change in the system to reduce the business failure and lack in the process of
insolvency. Firstly, the promotors were defaulting willfully or otherwise behind the
shield that the law provide. This is because the company being a separate legal entity
and it is distinct from its promotors, shareholders and directors. Second, as the doctrine
of limited liability state that law recognize that the liability of the shareholders of a
company are limited to the extent of the unpaid dues.
 Prof. Abasaheb further explained us what new proposal were introduced in the New IBC
Code. The First proposal was made that the code shall book the non-cooperating
defaulter and empowering the creditor to initiate the process at an early stage to
replace the management. Second proposal was to provide takeover of management by
Insolvency Professional nominated by the creditors and such professional shall have the
flexibility to bring any turnaround specialists to achieve the desired business results.
Third proposal was to provide an early opportunity for liquidation of a company to
mitigate the losses of the debtors and to take actions against the fraudulent transactions
intended to siphon the company’s assets.
4/10/20 3
 Then he explained us the meaning of the Insolvency and Bankruptcy Code,
2016. The IBC, 2015 bill was introduced in Lok Sabha in December, 2015 and
was passed by the Lok Sabha on 5th May, 2016. Thereafter, the IBC Code
received the assent from the Hon’ble President of India on 28 th May, 2016.
Hence, the provisions of the IBC Code, 2016 had came into force from 5 th
August, 2016.
 Then he explained us what was new in the IBC Code, 2016. The IBC, 2016
provides for a specialized forum to oversee all insolvency and bankruptcy
proceedings for individuals, SMEs and corporates. Further, it empowers all
classes of creditors to trigger the resolution process in case of default in
payment by the debtors. Also it also provides insolvency professionals to take
control of corporate debtors and immediate suspension of Board of Directors
and Promotors. Last but not the least it provide stake holders time to
facilitate discussions and arrive at common resolution plan rather than
running an independent process.
 He explained us the institutional framework which are involved in IBC. They
are IBBI, IP Agencies, IRPs, Information Utility and the Adjucating Authorities
(NCLT,
4/10/20
NCLAT, DRT, DRAT, and Supreme Court). 4
• Then he explained the constitution, roles and responsibilities of the
institute framed under the IBC, 2016. IBBI – ‘The Board’ consists of
members including the representative from MCA, MoF, RBI, IP, IU.
The board is also responsible for making the model bye laws for
regulating the Insolvency Professionals. ‘IU’ – these are specialized
licensed bodies which would collect, maintain and disseminate the
information relating to the Insolvency and indebtedness of the
company.
• ‘IPA’ – it is a body that would admit the insolvency professionals as a
member and develop a code of conduct. ‘IP’ – These are the licensed
professionals appointed by the IPA who would take on the roles of RP
or Liquidator in IRP. ‘AA’ – It is body that would have exclusive
justification to deal with insolvency related matters. The application
shall be made to the appellate authority in case the parties to it are
not satisfied by the order passed by the AA.
4/10/20 5
• He explained us the Key Aspect of the IBC. IBC proposes a
paradigm to shift from the existing ‘Debtor in control’ to
‘Creditor in control’ regime. Further, the IBC aims at
consolidating all existing insolvency related laws as well as
companies act. In simple words, he tried to explain that the IBC
shall have an overriding effect on all the other laws relating to
Insolvency and Bankruptcy. Further, he said that the total time
given to resolve the insolvencies shall be completed in 180 days
which can be further extended by 90 days only after prior
approval from IBBI and there shall be a moratorium period for the
company during such Insolvency Process and IP shall take over the
control of the Management of the Company.

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 2.

BASIC DEDUCTION TO BE CLAIMED

FROM GROSS TOTAL INCOME

4/10/20 7
• Prof Suresh explained us the Basic deductions available with the
assessee which he can claim it to reduce his tax liability.
• Such deduction are under sections 80C, 80CCC, 80D, 80DD, 80E, 80U,
80TTA. This deductions are also called as Deduction under Chapter VI A
• He started with 80C which is basically an amount invested in various
life insurance plan, annuity plan, contribution to recognized Provident
fund, statutory deposits such as National Saving Certificate (NSC),
National Saving Scheme (NSS) etc. He further explained us that under
this section the eligible deduction available is Amount invested or
Rs.100,000/-, whichever is lower.
• Further he started with 80CCC which is available on amount paid as
premium to annuity pension plan. The eligible deduction under this
section is amount paid as premium for plan or Rs.100,000/- whichever
is less.

4/10/20 8
• Prof Suresh explained us deduction u/s.80D which is available on amount paid
as premium for health insurance policy for self, spouse, children and
Dependent. The eligible deduction under this section is: -
• Amount paid for Self, Spouse, Children and parent not a senior citizen or Rs.15,000/-
whichever is less
• In case the premium is paid for Self, Spouse, Children and parent being a senior citizen
then the amount paid or Rs.20,000/- whichever is less.
• Further he explained deduction under section 80DD as amount paid in respect
of maintenance including treatment of dependent who is person with
disability. The eligible deduction under this section is Rs.50,000/- (in case of
disability) or Rs.100,000/- (in case of severe or 80% disability).
• Prof Suresh explained us the deduction u/s.80E which is available in respect of
interest on loan taken for higher education. Eligible deduction under this
section is amount of interest paid in the year but up to 7 years.
• Next he explained deduction u/s. 80U which is available in case of person with
disability. The eligible amount of deduction is Rs.50,000/- (in case of disability
less than 80%) or Rs.100,000/- in case of severe disability above 80%.
4/10/20 9
 3.

FOREIGN EXCHANGE

4/10/20 10
 At the onset Prof. Bhattacharyya explained us the meaning of Foreign
Exchange as per FEMA as “Foreign Exchange means foreign currency and
includes –
• Deposits, credits and balances payables in any foreign currency.
• Draft, travelers cheques, L/Cs or B/Es expressed or drawn in INR but
payable in foreign currency.
• Draft, T/Cs, L/Cs or B/Es drawn by banks, institutions or persons
outside India but payable in INR.
 Foreign exchange is nothing but the claims of the residents of a country
to foreign currency payable to abroad.
 He further added that foreign currency is treated as a commodity to be
traded with the purchasing power of home currency. Foreign currency
refers to currency other than the monetary unit of the home country.
An exchange rate is the price of one currency in terms of another
currency.
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 Characteristics of Foreign Exchange Market
o Scarcity
o Commodity
o Rate
o Over the Counter (OTC)
o High Volatility
o Large amounts – Largest Single Market in the world trading $2 trillion a
day.
 Types of Market
o Merchant
o Inter Bank
o International
 Mostly Traded Currency pairs accounting for 90% of daily trading
activity
o EUR/USD, JPY/USD, USD/CHF, AUD/USD, GBP/USD and USD/CAD
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 Growth in Indian Forex Markets due to: -
 Quantum Rise
 Technological development
 Reforms measures and flexibility
 Allowing private sector banks and foreign bank to operate.
 Prof. Bhattacharyya explained us the difference between FERA & FEMA. He started
with the Objectives wherein the objective under FERA was conservation, however
under FEMA it was to develop the forex market.
 Under FERA there were some stipulated specific transaction and general permission for
Forex transaction, however, under FEMA all the current account transaction were
allowed with few exception
 The violence under FERA was treated as criminal offense, whereas, under FEMA it was
Civil Law with no criminal liability
 In India the forex transaction is regulated by the Reserve Bank of India. Authorized
Dealers are authorized to transact in foreign currency. Customers have to transact only
through these authorized dealers.
 Major player under this law are Corporates, Commercial Banks and Brokers, Central
Banks and Speculators.
4/10/20 13
 Prof. Bhattacharyya explained us the Direct and Indirect quotes. Where the
foreign currency is constant and home currency varies it is direct quotes. E.g:
US $ 1 = Rs. 40
 Where the home currency is constant and foreign currency varies it is indirect
quotes. E.g: Rs. 100 = US $ 2.4690
 He explained us why does the foreign exchange rates fluctuates? He explained
us the reason why such fluctuation occurs -
 Balance of Payment (BOP)
 Economy
 Fiscal Policy
 Interest Rates
 Monetary policy
 Political Factors
 Exchange Control
 Interventions
 Expectation
 Speculation
4/10/20 14
 4.

AUDITING ASSURANCE AND

STANDARDS – AN OVERVIEW

4/10/20 15
 Prof. Leon Verdes explains us that what makes the needs to introduce the
Auditing Standards, it was because auditing standards serve as guidelines for
and measures of the quality of the auditor’s performance. The International
Accounting Standard Board (IASB) issues the International Auditing
Standards. These International Auditing Standards are considered to be the
minimum standard of performance for auditors.
 Prof. Leon Verdes showed us who the Standards on Auditing are grouped.
 200 – 299 : General principles and responsibility.
 300 – 499 : Risk Assessment and response to assessed risk
 500 – 599 : Audit Evidence
 600 – 699 : Using the work of others
 700 – 799 : Audit Conclusion and Reporting
 The Prof. Leon Verdes explained us the standards on auditing one by one.
 On the concluding part professor said that “Robust audit is the key to re-
establishing trust and market confidence; it contributes to investor
protection and reduces the cost of capital for companies”
4/10/20 16
 General Principles and Responsibilities

 SA 200 – Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with International Standards on Auditing.
 SA 210 – Agreeing to the terms of Audit Engagements.
 SA 220 – Quality Control for an audit of an Audit of Financial Statements.
 SA 230 – Audit Documentation.
 SA 240 – The Auditors responsibility relating to fraud in an audit of Financial Statements.
 SA 250 – Consideration of Laws and Regulation in an audit of Financial Statements.
 SA 260 – Communication with Those Charged With Governance.
 SA 265 – Communicating Deficiencies in Internal Control to Those Charged With Governance.

 Risk Assessment and Response to Assessed Risk

 SA 300 – Planning an Audit of Financial Statements

 SA 315 – Identifying and Assessing the Risk of Material Misstatement through understanding
the Entity and its Environment.
 SA 320 – Materiality in planning and performing an Audit.
4/10/20 17
 Risk Assessment and Response to Assessed Risk

 SA 330 – The Auditors Responses to assessed Risk.

 SA 420 – Audit Consideration relating to an entity Using Service Organization.
 SA 450 – Evaluation of Misstatements identified during the Audit

 Audit Evidence
 SA 500 – Audit Evidence
 SA 501 – Audit Evidence – Specific Consideration for Special Items
 SA 505 – External Confirmation
 SA 510 – Initial Engagements – Opening Balances
 SA 520 – Analytical Procedure
 SA 530 – Audit Sampling
 SA 540 – Auditing Accounting Estimates, including Fair Value Estimate and related Disclosure.
 SA 550 – Related Parties
 SA 560 – Subsequent Events
 SA 570 – Going Concern
 Sa 580 – Written Representation
4/10/20 18
 Using Work of Others
 SA 600 – Special Consideration – Audit of Group Financial Statement
 SA 610 – Using the Work of Internal Auditors
 SA 620 – Using the work of an Auditor’s Expert.

4/10/20 19
 5.

MUTUAL FUNDS

4/10/20 20
 At the onset the Prof. Amit Oak explained us what is mutual funds. A Mutual Funds
of collective investment that allows many investors with a common objectives, to
pool individual investments, give to professional manager who in turn would invest
these monies in line with the common objectives.
 Prof. Amit Oak then explained us the types of mutual funds schemes. The mutual
funds are differentiated by constitution, by investment objectives and by the nature
of investments. He further explained us the above types of mutual funds as follows.
 By Constitution – There 2 types of mutual under this category they are open ended
funds and close ended funds. Under open ended there is no fixed maturity, they are
not listed and flexibility for investors to enter and exit at NAV at any point of time.
On the other hand, under close ended fund there is fixed maturity, they are
generally listed, and the investor has to buy/sell at market prices at which they are
trading.
 By Investment Objectives – under this category sir explained us the various
categories available as per the investor’s need. For example, a retired person would
like to invest in Income Fund as there will requirement of monthly income for his
day to day expenses. Where as the young age group would like to invest in Growth
Fund where the amount of reinvested again an again until the money is redeemed by
the investor.
4/10/20 21
 The other categories under this part are Balanced Fund, Money Market
Funds, Tax Saving Funds, Specialized Funds and Assured Return Funds.
 The Prof. Amit Oak explained us the reason behind why should an investor
should invest in mutual funds. He added as the stock markets are very
volatile and not easy to understand the trends of the stock it is better to
invest in mutual funds. Secondly, the funds in mutual funds are managed by
the professional who will assure you the return without any hesitation. Last
but not the least the funds are diversified in such a way that you will be
surely result into profit which was committed. Also the investor will get tax
benefit and liquidity into it.
 He further added that the mutual funds are one of the most regulated funds
in India. They are regulated by Ministry of Finance (MoF), SEBI, RBI, CLB,
ROC, Trustee, Auditors, Board of Directors.
 Prof. Amit Oak further elaborated that every mutual funds company has to
get registered with SEBI to carry on its business. The AMC is the only
responsible for protecting the investors interest and orderly promote growth
of funds.
4/10/20 22
 On the other hand the RBI has the dual supervision, one on the AMC and other on the
Banks sponsoring the AMC’s. Further the close ended funds has to comply with the
listing guidelines provided by the stock exchanges. All the AMC and trustee has to
comply with the Companies Act, 2013.
 Prof. Amit Oak further explained us the rights of the investors. The investor after
investing the in any funds becomes the proportionate owner of the funds. Further, he
also has the right to information from trustee to receive dividend, warrants, etc. he
also has the right to receive the annual report and account statements. Further the
investor has the obligation that he shall read all the offer documents and the risk factor
before investing into the mutual funds and shall also monitor the investment regularly.
 Further, Prof. Amit Oak explained us what is the offer document. An Offer Document is
an document which contain all the details of scheme. It is filed with the SEBI. It is some
what like prospectus. Under Close ended the offer document is issued only once during
the life time of the funds whereas under open ended funds offer document keeps on
updating on an regular basis.
 There are few mandatory information which shall be clearly mentioned under the Offer
Document they are – Details of the Sponsor, Description of the Scheme and investment
objectives, Term of Issue, Historical Statistics, Investors Rights and Services.

4/10/20 23
 The Prof. Amit Oak named the category of persons who can invest into Mutual
Funds. Resident Indian Individual, Indian Companies, Trusts / Charitable
Institutions, Banks, Insurance Companies, NRI, Partnership Firms etc.
 He further explained us how the NAV of the mutual funds are calculated. NAV
= Net Assets of the Scheme / No. of Unit Outstanding. Wherein Net Assets of
the Scheme = Market Vale of Investments + Receivables + Other Other
Accrued Income – Other Payable – Other Liabilities.
 The open ended funds has to declare their NAV of the scheme. NAV has to
published at least weekly. Close Ended Scheme (which are not listed) may
publish NAV monthly with prior approval of SEBI.
 Further, NAV is influenced by buying and selling of investments, valuation of
investment, other assets and liability and Units sold or redeemed.
 Prof. Amit Oak explained us the concepts of Loads in mutual funds. There are
2 types of loads in mutual funds viz., Entry Load, Exit Load and Contingent
Deferred Sales Load. Entry load is paid at the time of purchase whereas exit
load is paid at the time of sale and deferred load is dependent on the period
of holding.
4/10/20 24
 Prof. Amit Oak explained us the accounting treatment of the mutual funds.
These mutual funds are to be marked to market on market prices. The
unrealized portion cannot be distributed. Also the purchase and sell of
investment is to be recorded on trade date and not on settlement date. The
investments are treated to be as NPA if it does not fetch any return to
investor for more than 6 months.
 Dividend / Bonus / Rights are to be recognized on ex-dividend / ex-bonus
dates and not on declared dates. He added to determined gain / loss on
investments average cost is to be taken.
 Lastly he explained us the disclosure requirement to be followed.
Independent Audit has to be conducted by an Auditor. Summary to be
forwarded to SEBI and unit holders. They have to make full disclosure of
portfolio within a month from half year ended March 31 and September 30.

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 WE LOUNGE

4/10/20 26
 1

Mrs. Kainaz Turel

MANAGER – PROMOTION PLANNING
& EXECUTION EXCELLENCE AT BIG
BAZAAR (FUTURE GROUP)

4/10/20 27
 She started at We School and was an Alumni from the batch 2003-2005 PGDM in
Marketing and Retail. Afterwards, she started her professional carrier in a retails
industries at Future Group (formerly known as “Pantaloons Retail India Pvt. Ltd.) as
Assistant Manager.
 She shared her experience of her first day at Job were he had been taught that the
life from now onwards will be a treadmill where your customer will always evolving
where you will be thinking that “what he wants”, “what he will want” & “there will
always a part of people who want that and much more”.
 She also shared with us that what makes her to comes to retails industries. At the
onset, she was very keen for corporate communication but a month before
placement while she was analyzing the customers at the first stall of pantaloons,
which was opened, that whether they will buy or not, who presses the customer
when he is not intended to buy. This activity make rise in her interest towards the
retails Industries.
 After that she went to her mentor and said that she wanted to do retail. She also
said that her intention were clear that she want to go in Pantaloons Retails India
Pvt. Ltd. before it she didn’t even put her resume in any of the placement days.
However, on Day 4 of her placement Pantaloons arrived and then she put her first
resume there.
4/10/20 28
 On asking why she wanted to join only Pantaloons, she replied, the first
reason being that Future Bazaar mention in two format i.e., retails and
Fashion. The spectrum over here was so big that she can expand the business
as well as herself to a new height.
 She also shared her experience of first day at office where the HR person
quits and the persons over him has no idea for what the group of this people
were appointed for. So unlike the lucky draw system there were assigned
their work and Operation was the given to Mrs. Kainaz Turel. She was
amongst the few who accepted the job with an expression of great, new
opportunity were handed.
 After few months she was allotted with Kids Section where she was heading a
team of 14 persons and she had to fulfill all target, team motivation into it.
She had to run the store as if it was her own store. She braked her target into
month, weeks and days. She also shared when she had done her first big days
on 26th January, the crowd over there was overwhelming. Her section store
clocked the highest sales across the country.

4/10/20 29
 Further, she had given food section with a target of 12 Lakhs a month. However,
she achieved the first 6 Lakhs within a weeks time. Looking at which the target
was revised to 20 Lakhs. However, at the end of the month, she and her team
had achieved a target over 24 lakhs. Furthermore, she achieved a target of over
1 Crore in a year. After a year, she handed over the store to some other
persons.
 She stated that her senior said that she was acting as a mother at the future
group store, wherein she gave birth to child, feed and take care of the store
until it is well versed to handle it by itself and then handed it over to another
person.

4/10/20 30
 2
Mr. Sachin
Shanbhag
HEAD OF BUSINESS
INTELLIGENCE UNIT – TATA
AIG GENERAL INSURANCE
COMPANY

4/10/20 31
 He started at We School and was an alumni of batch 1998-2000. After the course he
joined Captech Online Private Limited it was a platform for dealing in secondary
market (Debt Market).
 He comes with 16 years experience in strategy, analytics, channel development in
both life and general insurance. Over the years, he has worked with Bharti AXA Life
Insurance, AEGON, Religare Life Insurance and ICICI Prudential. Now, he is current
working with TATA AIG General Insurance Company wherein he an expert in
conceptualizing and driving tactical initiative for sales distribution channels.
 He also shared he experience wherein he said that the insurance business now a
days have been drastically changed. In olden days, where we take insurance policy
through our relatives or old aged uncle who would come to home with huge bag with
lot of form and gives us the policy. Now a days it has gone through the banking way.
 He further explained his job role at TATA AIG, he said Business Intelligence Unit
(BIU) is an activity which provide its sales team with the most expensive thing i.e.,
Data. Because, in the insurance business, the data is the most crucial thing you are
required with to get work done and achieve your annual target in terms of sales or
profit. Hence in simple terms, BIU is enabling your team to perform better with
adhoc and tactical initiative along with the regular fashion.
4/10/20 32
 On asking his background why did he pursued for an MBA, he shared that he was
pursuing for B.Sc. in Statistics and Computer Application course by side with an aim
that after completing his graduation he can start off with normal programming by
his side. However, when he was into his final year his father asked him what he
want to pursue further. He replied an MBA. He explained him that an MBA is an
wholly different world with what you see and what it is actually is. You can learn
new things to become a good Manager. MBA will gives you an advantage of been
ahead of others.
 On asking that what quality you would look for while hiring students from an MBA
college, he replied, the candidate’s feet's must firmly be on grounds because the
student after pursuing MBA thinks that they are well versed with everything which is
not the case. Further, his/her head should be on shoulder rather than be on air.
Lastly, he/she should be practical, logical and they should know where they want to
be.
 Further he shared that the students who are pursuing the course should more be
focused on syllabus, projects and daily classes in the first year. However, the second
year of course is not as stressed in terms of projects and assignment are concern as
compared to 1st year. Further 2nd year of course is most important because of its
specialization. Once it is done you can select the industry where you want to be.
4/10/20 33
 So in the second year, you can well utilize this extra time in gaining more
knowledge, learn and develop and prepare yourself very well in the industry in
which you have selected and gain information of the organization in which you want
to be part of. Select the company of which you have dream of to be a part of it and
develop additional skills which may not be part of syllabus.

 On asking that what he would look for in a student if he comes during the
placement, he replied the candidates must be Logical and practical, further he
should atleast have the knowledge of basic principle of insurance business that how
the business works and also he/she should be good in his communication skills and
smart because he has to deal with various types of customers wherein this skill will
help him a lot.

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 3
Mr. Rajdeep
mhatre
Director – SCM of CHEP
(Commonwealth handling
equipment pool)
4/10/20 35
 Mr. Rajdeep Mhatre is hard core Supply Chain Professional. He has set up an
distribution and logistic network for CHEP at PAN India level. Further, his
specialty are setting up warehousing and distribution solution, planning and
analysis, vendor development, contingency planning, managing cold chain, retail
and wholesale.
 He has an tremendous working experience of 23+ years. He has started in 1980s
where he was working with Konkan chemical as a store job wherein he only has
track the inbound and outbound. After which he went to gulf for some year for
making money because the it was the primary objective at that point of time.
 After returning back to India, he had got a hard core Supply Chain Management
job and from there his journey for SCM has started. Working with an MNC and
then with fully Indian Company made him well-versed with this industry.
 On asking that how did CHE happened to him, he replied it was not happen to him
he has worked very hard and made it happen to him. The journey was full of ups
and downs. At the onset while he was working with the MNC in Bangalore it was
difficult for him to cope with office and the family which was in Mumbai.
However, he applied for the relocation. After which he was offered operation in
its head office which was in Mumbai. Soon he realized that he was not
contributing to the growth of the company or himself as well. So he decided36 to
4/10/20
look for something else.
 He was aware of CHEP just entering to India with some opportunity. He started
looking for an opportunity so that he can prove himself. He was offered with Project
Manager at CHEP which was lasted for 3 years. Slowly and gradually he promoted
and become a director of SCM in CHEP.
 He also shared his experience about how is CHEP doing in India. He said they started
in March 2008 with the registration and are having more than 350+ customers with
them, they have more than 35+ warehouse across the country, 5 regional offices,
100+ employees and about 14 odd industry awards in last 3 years in SCM, Innovation,
Human Resource, Manufacturing etc.
 He said that they are continuously working on the challenges which they are facing.
They are working on Cost Improvement and value addition has to be added back to
customers. He further added that whenever they supply the pallets they say their
customer about from where this paper are being cutted and they are being cutted
because they has to be. This make the peace into the mind an eco friendly
environment and the same also differentiate them from others.
 He further shared with us he loves about his office that he get energy by looking his
young team which work every now and then. the success mantra for him which he
has received were trustworthy and delivers on commitment.
4/10/20 37
 NEWS WIRE

4/10/20 38
 1

LIC TO LAUNCH ITS MEGA IPO SOON

Learnings:
India’s one of the largest government company to initial public offer (IPO) for the first
time ever also there will be no impact on the policy holders or employees after the launch
of IPO. Mr. M R Kumar, the Chairman of the LIC added that the valuation of the company is
difficult they have not calculated it but they will soon work on it. He also said that they will
be required to amend the Life Insurance Corporation Act, 1956, before launching of IPO.

Finance Minister Smt. Nirmala Sithamraman proposed that the centre will be offloading
its stake in LIC via on IPO, as a part of its mega 2.1 Lakh crore divestment plans. This
comment were came in response to the media report that suggested that LIC union across
the country have started agitation and protests against the government budget
2020proposal to deprive part of its stake.

4/10/20 39
 2

LIC IPO – 5 THINGS TO KNOW ABOUT THE

UPCOMING SHARE SALE
Learnings:

 Since the government owns the 100% stake in the LIC it is likely to sell atleast 10%
stake in public sector insurance firm. Since LIC is governed by LIC Act, 1956 the act
will have to be amended and the corporation’s capital structure will have to be
changed.
 IPO is likely to be launch in second half of the next fiscal year. The listing of the LIC
will make it one of the India’s biggest companies in terms of Market Capitalization
along with RIL, TCS and HDFC Bank. Government is expected to fetch around a
valuation of 8-10 Lakhs crores.
 LIC’s gross NPA rose to 6.10% in the first six months of 2019-20. Gross NPA has
almost doubled in the past 5 years. The insurer has always maintained it at 1.5% - 2%
Gross NPA
4/10/20 40
 2

LIC IPO – 5 THINGS TO KNOW ABOUT THE

UPCOMING SHARE SALE
Learnings:

 LIC is the country’s largest insurer with market share of 76.28% in number of policies
and 71% in first year premium. LIC has many subsidiaries including IDBI Bank. It
bought a controlling stake in IDBI Bank last year. LIC recorded assets under
management of Rs. 31 Lakh Crores in 2019-20.
 Expert believe that the stake sale will allow government to meet its highest ever
disinvestment target and attract foreign investors. Government has set an ambitious
divestment target of Rs.2.1 Lakh crore for FY 2021 and expect to garner nearly Rs.
70,000 crore through partial stake sale in LIC.

4/10/20 41
 3

NEW INCOME TAX REGIME: WHO WOULD

BENEFIT BY SHIFTING TO NEW REGIME.
Learnings:
This case study is about analysis that which persons can be benefitted with the new income tax
regime.
I would produce the example provided in the case study in short. A 72 year woman having its gross
annual income of Rs.7,18,000/- as pension and saving bank interest is examined under both tax regime
tax comparison is given in the next slide.
Under the old regime she get deduction u/s.57(iia) of Rs.15,000 and u/s.80TTB of Rs.10,000. Hence,
her taxable income under old regime will be Rs.6,93,000/-. Further, the basic exemption limit under
old regime will be Rs.3,00,000/-
If she moves to new tax regime the basic exemption limit will be Rs.2,50,000. Further no deduction
and exemption will be provided to her under new regime. So her taxable income will be Rs.7,18,000.
(after analyzing the table)
Hence, by shifting to new regime the woman may save Rs.14,872 in this scenario. However under old
regime, the woman has the option to invest in fixed deposit in bank and earn Rs.40,000 without any
tax expense.
4/10/20 42
 Details Old Income Tax Regime New Income Tax
Regime
Income Level(Rs.) Tax Rate (%) Tax (Rs.) Tax Rate (%) Tax (Rs.)
Upto 2,50,000 0 0 0 0
2,50,000 – Rs.3,00,000 0 0 5 2,500
3,00,000 – 5,00,000 5 10,000 5 10,000 TAX COMPARISON
5,00,000 – 6,93,000 20 38,600 10 19,300
6,93,000 – 7,18,000 - - 10 2500
Total Tax 48,600 34,300
Health & Education Cess 4 1,944 4 1,377
Tax Payable 50,544 35,672 Once the woman shifts to
the new income tax regime,
she can’t come back to the
old income tax regime and
Under the old tax regime, woman has option to save
lose opportunity to invest to
entire tax that is currently payable by investing
avail deductions and save
Rs.1,50,000 in tax saving investment u/s.80C and by
taking health insurance policy by paying premium of taxes
Rs.43,000 or by availing benefit of upto Rs.50,000.
These would bring her taxable income down to
Rs.5,00,000
4/10/20 and she would get rebate on entire tax. 43
 4

EARN BETWEEN 10 – 15 LAKHS.? THESE ARE

YOUR NEW INCOME TAX SLAB RATES
Learnings:
 During her Second Union Budget speech Finance Minister Smt. Nirmala Sitharaman
announced a change in income tax slab rates. The new slab have significantly reduced
the taxes for most of the brackets. Individuals in the income bracket of 10 – 12.5 lakh
will have to pay 20%, while those earning 12.5 – 15 Lakh will have to pay 25%.
 The new income tax regime will not have any exemption or deduction and the same
will be optional.
 Finance Minister in her speech said that “A person earning Rs.15 Lakhs p.a. and not
availing any deductions will now pay Rs.1.95 lakhs instead of Rs.2.73 lakhs.
 However, before the announcement, rumours were rife that government would place
the 5 – 10 Lakh Income bracket into 10% tax, while it would be 20% for 10 to 20 Lakhs.
It was further expected a new slab rate of 35% without surcharge for individual
earning Rs.2 Crores per annum.
4/10/20 44
NEW INCOME TAX INCOME OLD INCOME TAX SLAB
SLAB RATES RATES
10% Rs.5 – Rs.7.50 LAKHS 20%
15% Rs.7.50 - Rs.10 LAKHS 20%
20% Rs.10 – Rs.12.50 LAKHS 30%
25% Rs.12.50 – Rs.15 LAKHS 30%
30% Rs.15 LAKHS & ABOVE 30%

4/10/20 45
 5

DIRECT TAX COLLECTIONS FROM MUMBAI

DIP 13% FIRST TIME IN 10 YEARS
Learnings:
 Mumbai is regarded as the financial capital of the country. It contributes about 37% to
the direct tax revenues.
 As per the sources, the total direct tax collections have not even touched Rs.9 trillion
mark so far till January 2020. However, this leaves a gap of Rs.5 trillion, which will be
needed to collect in another 2 months.
 The drop in direct tax collection from Mumbai was followed by a decline of over 4% in
December 2019 which stood at Rs.2.2 trillion as compared to that of 4.3% less than
Rs.2.3 trillion in December 2018.
 Further, the dip further grew to double digit after the department released refunds on
December31, 2019.
 As per the publication report, the advance tax collection figure for September quarter
fell to Rs.73,000 crore from Rs.77,000 crore year ago.
4/10/20 46
 Further, in view of this steep fall in tax collection, CBDT has called
an urgent meeting wherein they have asked the concerned officials
to discuss the strategies to meet the target for the last quarter of
January to March.
 The direct tax body is also said to have order its field officials to put
more focus on recovering tax arrears.
 In more efforts, the Income Tax Officials have been asked to verify
payment of advance tax by property sellers in cases where Tax
Deducted at Source (TDS) is made by the buyer but it not paid to the
government.

4/10/20 47
 6

GST COLLECTION CROSSES RS. 1.1 TRILLION MARK

IN JANUARY
Learnings:
 In January, domestic GST collection was around Rs. 86,453 cr., around 23,597 cr.
was collected through IGST and cess. For the third month in a row in January with
improved compliance and plugging of evasion. However, as per the provisional
numbers the total collection was estimated at Rs.1.1 trillion in January. Hence the
GST collection is in line with the target set by the Revenue.
 The total GST collection in December has come at Rs.1.03 trillion. However, going
by the provisional numbers growth in the domestic GST collection comes about
11.5% while the IGST on import of goods contracted by 6%.
 8.28 million GSTR3B return were filed till Thursday (i.e., till 16 th January, 2020).
 To augment revenue collection, the Revenue Secretary revised GST collection target
to Rs.1.25 trillion for the last month of the financial year with specific focus on
fraudulent claim of Input Tax Credit (ITC).

4/10/20 48
 It was emphasized, GST authorities would look into the mismatch of supply and
purchase of invoice, data analytics of mismatch in GSTR-1, GSTR-2A and GSTR-
3B, failure of filing returns, over invoicing, recuperation of fake or excess
refunds availed beyond the permissible limit etc.
 Around 40,000 companies have red flagged for excess or fraudulent ITC
availment and other tax related wrongful issues through data analytics, out of
1.2 crores GST registrants and focus would be on these identified taxpayer.

4/10/20 49
 7

E-COMMERCE COMPANIES TO COLLECT 1% TDS

FROM SELLERS UNDER NEW LEVY
Learnings:
 The Government has proposed a new levy of 1% TDS (Tax Deducted at Source) on E-
Commerce transactions under section 194-O, this moves shall increase burden on
sellers on such platforms.
 Further, the government has also proposed to amendment u/s.197 (for lower TDS),
u/s.204 (to define person responsible for paying any sum) and u/s.206AA (to provide
deduction @5% in Non PAN / Aadhar cases).
 This amendment will take effect from 01st April, 2020. The document explained that
e-commerce operator – an entity owning, operating or managing the digital platform
– will have to deduct one percent TDS on gross amount of sales or services or both.
 This provision will not apply in cases where the seller’s gross amount of sales during
the previous year through the e-commerce operator is less than 5 lakhs and has
furnished his PAN and Aadhar number.
4/10/20 50
 8

INCOME TAX: NOT JUST TDS, FORM 26AS TO SHOW

PROPERTY, SHARES & MF TRANSACTION
Learnings:
 The union budget has rationalized the provision relating to Form 26AS, taxpayer will now
get a detailed information statement beyond TDS, such as sale/purchase of immovable of
property, share transaction etc. This will help taxpayer in filing income tax return easier.
 At present, the ITD delivers Form 26AS to every person, showing details of TDS and other
prepaid taxes.
 Such statement will also include other financial information such as sale or purchase of
immovable property and shares. This proposed amendment will be effective from 01st June,
2020 and the form and manner of the annual information statement will be prescribed by
the government later separately.
 In last year’s budget, Finance Minister Smt. Nirmala Sitharaman had said that pre filled ITR
will be made available to taxpayers which contain details of salary income, capital gains,
bank interest dividend etc. and tax deductions that will make the filing of accurate tax
returns simple.
4/10/20 51
 Information regarding Income and TDS will be collected from banks, stock
exchanges, mutual funds, EPFO, state registration department etc.
 Now-a-days, taxpayers use online portal for tax filings, wherein personal details,
Aadhar number, Bank Account and tax paid information are pre populated in the tax
form.
 In fact ITR 1 comes prefilled with information related to the tax payer and
employer, break up of the salary into taxable component and TDS through Form
26AS. While the electronic form gets automatically populated with tax liability on
fixed deposit interest as the bank deducts TDS, an assessee has to fill interest
earned on saving account in the ITR as there is no TDS on the same.
 Form 26AS is a taxpayers passbook which shows information on taxes deposited
against PAN. It contains details of tax deducted on income by deductors, details of
tax collected by collectors, advance tax paid by the taxpayers, self-assessment tax
payment, details of refunds received, details of high value transactions in shares,
mutual funds etc. It can be downloaded on TRACES website or via Net Banking
facility of authorised banks.
 Tax expert says fully pre filled returns will ease tax payers compliance burden and
will also help plug revenue.
4/10/20 52
 9

MUTHOOT FINANCE TO ACQUIRE IDBI’S ASSET MANAGEMENT,

MUTUAL FUND BUSINESS FOR 215 CRORE
Learnings:
 Muthoot is the country’s largest gold loan NBFC. However they entered into a definitive
agreement to acquire IDBI Asset Management Ltd. and IDBI Mutual Fund Trustee
Company Ltd.
 The move will pave the way for Muthoot’s entry into Mutual Fund Asset Management
space.
 However, as per the official statement the company will shell out Rs.215 crore to
purchase 100% equity share of IDBI Asset Management and IDBI MF Trustee.
 The transaction is about closed by this February subject to the approval of SEBI,
regulators etc. Upon completion, IDBI Asset Management and IDBI MF Trustee will
become wholly owned subsidiaries companies of Muthoot Finance Limited.
 IDBI Mutual Fund is one of the companies in the mutual fund space with asset under
management worth Rs.5,300 crore. The firm runs 22 schemes with robust products.
4/10/20 53
 10

NBFC’s hope to come out of deep, dark tunnel in 2020

Learnings:
 The Non banking Finance Company are hoping for better days in the new year as they
expect liquidity condition to improve on the back of various measures announced by the
government and the Reserve Bank. The Asset quality pressures, Liquidity squeezes,
asset-liability mismatches, higher borrowing costs, rising defaults level and rating
downgrades had made 2019 a tumultuous year for NBFC’s.
 Having badly lost a year, the Managing Director of Shriram Transport Finance Mr. Umesh
Revankar says, “the outlook is positive as the government and RBI has announced a lot
of measures to help the NBFC Sector”. The Governemnt has announced several
measures such as allowing banks to provide partial credit enhancements to bonds issued
by NBFC’s, relaxing the minimum holding period to encourage loan securitization.
 The amendments in RBI Act gave the Central Bank the power to strengthen governance
at NBFC to protect depositors/creditors interest and secure financial stability.
4/10/20 54
 This law empowered the RBI to remove the director of NBFC; supersede their
board and appoint administrators to improve governance and protect the
interest of investors/depositors/creditors.
 The NBFC sector witnessed third largest mortgage lender Dewan Housing
Corporation Limited (DHFL) going belly up, putting at risk close to Rs.1 Lakh
Crore of lenders, bond holders, fixed depositors. DHFL has become the first
NBFC to be sent to Bankruptcy. There were delays in repayment of debt
instruments by few other NBFC also.
 Regarding to it RBI Governor Shri Shaktikanta Das had told to reporters, “I can
say with some amount of confidence that we have a fairly good idea of where
the vulnerabilities lies, which are the vulnerable NBFCs and we are
monitoring them very intensively”.
 The assets quality of NBFCs deteriorated through 2019, with their gross non
performing assets increasing to 6.3% as in September 2019 from 6.1% in March
2019. A major collateral damage was the NBFC’s ability to tap the market to
raise capital as the crisis has dented investor confidence in the sector, forcing
them to rely more on banks for their funding requirement.
4/10/20 55
 The head of the Public Sector Bank said “we never shied away from lending to
NBFC through various modes like pool buyout or on lending. We will continue
to fund NBFC’s with good rating and who are able to manage their asset
liability mismatches”. Also rating agency CRISIL in a recent note said the
assets under management of NBFC may fall to a decadal low of 6-8% in FY 20
compared to around 15% in last fiscal year. This de-growth will be on account
of the rising borrowing costs, de-risking of loan books and a slowing economy.
 However, other sector observer, feels the liquidity stress may continue for
one year in absence of a refinance window. The sector has been asking a
special refinance window to meet their cash need but the government has so
far not given into their demand. “the importance of NBFCs cannot be ignored.
They are the providers of the last mile funding and hence their need to credit
must be taken care of” admit a banker.

4/10/20 56
 THANK YOU…

4/10/20 57