Women Entrepreneurship Schemes in India

 

We keep on talking on Women Empowerment initiatives to create a hype in our thought process, but logically not making them avail existing easy funding mechanism to fulfil their dream of getting really empowered. In USA 41.8% of all businesses are owned by women, alongwith 46.8% female labour force participation. Irrespective of all these schemes by Indian government, women comprise only 14% of the total entrepreneurs in India, with only 9.32% female labour force participation. We are hereunder summarising few of Government and Banking schemes to provide venture funding for women. Bring this awareness to make Nari Shakti on entrepreneurial platforms:

(1). Women Entrepreneurship Platform (WEP):

Mentorship, network, funding, skill training, Incubation, and acceleration program offered by NITI Ayog for women to support in their entrepreneurship journey.

Upasana Taku(MobiKwik) received support from WEP, their current valuation is ~₹5700 Cr.

Kavita Shukla(FRESHGLOW Co) received support from WEP, now has customers in over 35 countries.

Shradha Sharma(YourStory) received support from WEP, is one of the leading media platforms for entrepreneurs.

Radhika Aggarwal(ShopClues) received support from WEP, their current valuation is ~₹1,000 Cr.

(2). Mahila Udyam Nidhi Yojana

MUNY Offers loans upto 10 lakh to be repaid in 10 years for supporting women entrepreneurs to set up a new MSME / SME scale venture. It is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI) and the rate of interest better than prevailing in the market.

(3). Bharathiya Mahila Bank Business Loan

This scheme offer loans up to ₹20 crores to female entrepreneurs looking to start a manufacturing business. Ease of collateral free loan upto certain amount is big attraction of this scheme. The Bharatiya Mahila Bank merged with the State Bank of India, the loan programme is still active.

(4). Dena Shakti Scheme

Offers loans upto ₹20 lakhs at an interest rate 0.25% below the base rate for building a business in sectors like Partnership firm, business, Retail stores, Manufacturing sector, Microcredit organisations, Housing, Education, etc.

(5). Stree Shakti Yojana

Offers loans upto 20 lakh for industrial sectors such as housing, retail, and education. Also allows women to avail of an interest concession of 0.05% on loans more than Rs. 2 lakh.

(6). Stand-Up India Scheme

This initiative offers composite loans between 10 lakh and upto 1 Crore to women in SC/ST categories.

Kanika Tekriwal started JetSetGo with this initiative, their current valuation is ~₹100 Cr.

Rashmi Daga started FreshMenu with this initiative, their current valuation is ~₹210 Cr.

(7). Mudra Yojana Scheme

MYS offers loans of ₹50,000 to ₹10 lakh and ideal for setting up beauty salons, starting a small shop, home-based business, or starting your dream company.

Shanti Mohan started LetsVenture with this initiative, their current valuation is ~₹270 Cr.

Ananya Jain started Chai Break with this initiative, their current valuation is ~₹50 Cr.

Dream of Indian government of USD 10 Trillion$ economy in the next 10 years can happen true only if women contribute desired portion of per capital income with men. Wish all these initiatives bring women on a new horizon, with ease of funding and strengthen your entrepreneurial dreams to come true, and wish good luck to all the incredible women, who are making this world a better place to live.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Financial Independence and Retire Early - F.I.R.E.

This isn’t another one about Buffett’s wisdom on investing or life. It is about the relationship between time, health and money using Buffett’s wealth and age as clickbait. The author begins with “Would you rather have $0 and be 20 years old, or have $100 billion and be 90? Most people respond to this hypothetical with a resounding “Of course not, there’s no amount of money I would take to fast-forward to being 90 years old.””

“There’s a popular movement called F.I.R.E. (Financial Independence, Retire Early), where followers are devoted to living as frugally as possible so that they can retire as early as possible. While I agree with a lot of the merits of F.I.R.E. (namely the F.I. part), I disagree with the R.E. part. Retiring 10 years early at the expense of a considerable portion of one of the most valuable periods of life (your 20s/30s) seems absurd. 

For one, what is 10 years in the grand scheme of your life? On the back end, the last 10 years are almost negligible (besides, you don’t know if you’re going to live to 90 or 100 anyways). But on the front end, they’re considerably more valuable.

Secondly, work can (and should) be a large part of what drives fulfillment. Progress with whatever we're pursuing (whether we call it work or not) is one of the key drivers of happiness, so we shouldn't discount the value of work and its impact on our overall well-being.

Would you give up 10 years on the tail end of your life if it meant that you would have a more fulfilling 20s/30s? I think most of us would take that rather than the opposite — optimizing solely for wealth early-on to get an extra 10 years of retirement at the end.”

Buffett and Munger are perhaps the best example of deriving fulfilment from their work well into their 90s.

He then ties health, time and money together:

“Certain experiences that require peak physical health might only be possible in the 20s and 30s phase. For example, say you want to run your fastest marathon, or you’re like these two friends, Phil and Carter, and you want to journey from Beijing to Barcelona by bike. Sure, no one needs to do these things, but they’re experiences that would be incredibly enriching and novel.

And sometimes, physical health isn’t the constraint. If you have children, they will only live with you for 18 years of their lives, and before you know it, they’re gone. Any experiences you want to have with your kids, you have a limited time window to do those things. So, it makes sense that at this phase (the roughly 20 year period where you have children at home), most people would find the greatest fulfillment by optimizing for time spent with their kids — earning those experience points while that window exists.

A bonus of having richer experiences earlier in life is that you not only get experience points, but these early experiences pay “memory dividends” in the value of the stories they create — stories that can be retold time and time again.

Experiences yield dividends because we humans have memory. We don’t start every day with a blank brain… We wake up every morning preloaded with a bunch of memories that we can access at any time.

When you add in this concept of a memory dividend to the net fulfillment equation, something becomes clear: it pays to invest in experiences early.

Compounding works not only with money, but also with experiences.”

The author concludes with some brilliant graphic illustrations on why ‘Net Fulfilment’ over ‘Net Worth’ is a better pursuit in life.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Getting Wealthy vs Staying Wealthy

This weekend brings a valued book reading and sharing learning from The Psychology of Money, few bullet points:

#Good investing is not necessarily about making good decisions, It’s about consistently not screwing up.

#There are a million ways to get wealthy, and plenty of books on how to do so…..But there’s only one way to stay wealthy: some combination of frugality and paranoia.

Even if “wealthy” is not a word you’d apply to yourself, the lessons from that observation apply to everyone, at all income levels.

#Getting money is one thing………#Keeping it is another.

#If I had to summarize money success in a single word it would be #Survival

#Capitalism is hard. But part of the reason this happens is because getting money and keeping money are two different skills.

#Getting money requires taking risks, being optimistic, and putting yourself out there.

But #Keeping money requires the opposite of taking risk. It requires #humility, and fear that what you’ve made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made is #attributable to #luck, so past success can’t be relied upon to repeat indefinitely.

#Michael Moritz, the billionaire head of Sequoia Capital, was asked by Charlie Rose why Sequoia was so successful. Moritz mentioned, We assume that tomorrow won’t be like yesterday. We can’t afford to rest on our laurels. We can’t be complacent. We can’t assume that yesterday’s success translates into #tomorrow’s good fortune.

Not “growth” or “brains” or “insight.” The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference. This should be the cornerstone of your strategy, whether it’s in investing or your #career or a #business you own.

#Compounding only works if you can give an asset years and years to grow. It’s like planting oak trees: A year of growth will never show much progress, 10 years can make a meaningful difference, and 50 years can create something absolutely #extraordinary.

#But getting and keeping that #extraordinary growth requires surviving all the unpredictable ups and downs that everyone inevitably experiences over time.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Shares & Mutual Funds मुनाफे पर..... Income Tax कैसे लगता है

CA Yogesh Birla

पुरातन समय से कहावत चली आ रही है कि अपनी मासिक आय में से, भविष्य हेतु बचत करने के बाद ही, वर्तमान का खर्चा करना चाहिए, वही व्यक्ति सदैव सुखी रहता है । इस बचत को हमलोग Share, Mutual Funds, Realestate, Gold आदि में Invest करते है, एवं जब उनको वापिस बेचते है, तो Income-tax लगता है । बहुत बार लोगो को आयकर का ज्ञान नही होने से, वो बहुत कम मुनाफे पर शेयर्स बेच देते है, एवम फिर पता चलता है कि, जितना प्रॉफिट कमाया, उससे तो ज्यादा इनकम टैक्स भरना है । अतः इन बातों का ध्यान रखें :-

शेयर बाजार में निवेश :-

Short Term Capital Gains :- यदि हम किसी शेयर को खरीदने के 12 महीने के भीतर ही बेच कर लाभ कमा लेते है, तो यह शार्ट टर्म केपिटल गेन कहलायेगा । इस पर 15% की दर से आयकर लगेगा । यदि आप शेयर को नुकसान में बेचते है, तो loss को अगले 8 साल तक carry forward करके भविष्य के profit से setoff किया जा सकता है ।

Long Term Capital Gains :- यदि हम किसी शेयर को खरीदने के 12 महीने के बाद बेच कर लाभ कमाते है, तो यह लांग-टर्म केपिटल गेन कहलायेगा । यदि कुल मुनाफा 1 लाख रुपये से अधिक है, तो इस पर 10% की दर से आयकर लगेगा । यदि आप शेयर को नुकसान में बेचते है, तो loss को अगले 8 साल तक carry forward करके भविष्य के सिर्फ Long term capital gains से ही setoff किया जा सकता है ।

Share Day Trading (without Delivery) :- यदि आप रोजाना शेयर खरीद बेच रहे है, परंतु डिलीवरी नही ले रहे है, तो यह आपकी सट्टे से होने वाली आय  (Speculative Profit) कहलाएगी। इस पर आपकी normal slab rate के हिसाब से ही आयकर लगेगा । बेचने में यदि नुकसान हुआ है तो वह सिर्फ अगले 4 वर्षो तक carry forward किया जा सकता है एवं भविष्य में होने वाली सिर्फ Speculative income से ही setoff किया जा सकता है ।

म्यूचअल फण्ड में निवेश :-

Equity Mutual Funds :- यदि इक्विटी म्यूच्यूअल फण्ड में किया गया निवेश, खरीद के 12 माह से कम में बेच दिया गया है तो मुनाफे पर 15% आयकर लगेगा । यदि निवेश को खरीद के 12 माह से अधिक होल्ड करके बेचा गया है, तो मुनाफे पर  सिर्फ 10% आयकर ही लगेगा (यदि मुनाफा 1 लाख से कम है, तो यह आयकर मुक्त है) ।

Debt Mutual Funds :- यदि डेब्ट म्यूच्यूअल फण्ड में किया गया निवेश, खरीद के 3 वर्ष के भीतर बेच दिया गया है, तो इस पर नार्मल आयकर स्लैब के हिसाब से ही आयकर लगेगा।  यदि निवेश को खरीद के 3 वर्ष से अधिक होल्ड करके बेचा गया है, तो मुनाफे पर 20% आयकर लगेगा (indexation का लाभ लेना ना भूले) । यदि इस निवेश को बेचने से नुकसान हुआ है तो इसको अगले 8 वर्षो तक carry forward करके setoff किया जा सकता है ।

यदि निवेश करने के साथ ही साथ आप इस पर मिलने वाले डिविडेंड पर आयकर, खरीद बेचान के मुनाफे पर आयकर आदि का ध्यान रखेंगे, तो अपने निवेश पर अधिक मुनाफा कमा पाएंगे एवं अपने Investment Advisor / Broker से उचित मार्गदर्शन भी प्राप्त कर पाएंगे ।

contributed by :

CA Yogesh Birla

Director
Birla WP Management
read my blogs : www.YogeshBirlaCA.Blogspot.com

बजट 2021 के मुख्य प्रावधान (सरल हिंदी में)

बजट 2021 में इनकम टैक्स एक्ट में निम्न बदलाव किए गए है :-

1. यदि सीनियर सिटीजन 75 वर्ष का हो चुका हो तो आयकर रिटर्न फ़ाइल की जरूरत नहीं, बशर्ते कि, सिर्फ पेंशन व ब्याज की इनकम हो । पेंशन वाले  बैंक के अलावा कहीं खाता नहीं हो । सरकार करेगी सिर्फ कुछ बैंकों को नोटिफाई, डिक्लेरेशन देना होगा ताकि सही टैक्स कैलकुलेट हो सके ।

2. शेयर्स के ट्रांजेक्शन करने वालों को बड़ी राहत। अब 26 AS पोर्टल पर दिखेंगे उनके शेयर ट्रांजेक्शन भी, इसलिए शेयर्स का नफा/ नुकसान होगा आटोमेटिक कैलकुलेट।

3. एक फरवरी के बाद से सालाना 2.50 लाख से ज्यादा यूलिप के प्रीमियम की maturity राशि पर लगेगा कैपिटल गेन। कैपिटल एसेट की डेफिनिशन व धारा 10(10D) में संशोधन

4. LTC की बजाय Cash अलाउंस भी होगा टैक्स फ्री

5. छोटे स्कूल व हॉस्पिटल को मिली छूट, धारा 10(23C)(iii ad) व ac की लिमिट 1 करोड़ से 5 करोड़ कर दी गयी । लेकिन एक सोसाइटी/ट्रस्ट की सभी संस्थाओं की रिसिट्स जुड़ेंगी।

6. अफोर्डेबल हाउसिंग प्रोजेक्ट में रेंटल इनकम को भी दी छूट। प्रोजेक्ट पूरा होने की समय सीमा 31 मार्च 22 तक बढ़ाई । फर्स्ट टाइम होम buyer के लिए 45 लाख तक का घर खरीदने पर एक्स्ट्रा छूट 1.50 लाख के लिए समय सीमा 31 मार्च 22 तक बढ़ाई धारा 80EEA

7. 12 नवम्बर 2020 से 30 जून 2021 तक बिल्डर बेच सकेंगे डीएलसी से 20% कम पर व buyer भी खरीद सकेंगे डीएलसी से 20% कम पर। कोई एक्स्ट्रा टैक्स नहीं । धारा 43CA व 56(2)

8. न्यू स्टार्ट-अप की भी समय सीमा 31 मार्च 22 तक बढ़ाई । धारा 80IAC व 54GB कैपिटल गेन इन्वेस्टमेंट के लिए छूट ।

9. ब्लॉक ऑफ एसेट्स की डेफिनिशन में से गुडविल को exclude कर दिया गया है ।

10. अगर 95% बिक्री एवं खर्चे का भुगतान बैंकिंग चैनल से हुए हैं तो 10 करोड़ के टर्नओवर तक ऑडिट से मुक्ति । धारा 44AB

11. देरी से फ़ाइल रिटर्न व रिवाइज्ड रिटर्न फ़ाइल करने का टाइम 3 महीने घटाया । धारा 139(4) व ,139(5)

12.राजस्थान हाइकोर्ट के निर्णय को किया nullify. कर्मचारी का पीएफ व ESI का कॉन्ट्रिब्यूशन लेट जमा कराया तो ख़र्चा आयकर में घटाया नही जाएगा । धारा 2(24)(x) r.w.s 36(vi)

13.  परमानेंट डिस्प्यूट रेजोल्यूशन कमेटी बनाई । नई धारा 245MA. अगर एस्सेसेड इनकम 50 लाख से कम व addition 10 लाख से कम, सर्च व कुछ खास केसेज को छोड़ते हुए

14. सर्च/ रेड के असेसमेंट के लिए स्पेशल प्रावधान धारा 153A व 153 C खत्म । अब सर्च केस का हौवा खत्म । पहले एक खास किस्म के सीए व एडवोकेट का वर्चस्व था कि सर्च के केस  करने में वे ही सक्षम हैं । वर्चस्व खत्म। अब सर्च के केसेज भी होंगे धारा 147/148 के अनुसार । सेंट्रल सर्कल खत्म होने की संभावना 

15. धारा 147 व 148 रेड्राफ्टेड। धारा 153A व 153C इसमें मर्ज कर दी गई एवं नई धारा 148A जोड़ी। reaaseesment के नोटिस से पहले इन्कारी का प्रावधान ।

16.  केस री-,ओपन के लिए समय सीमा घटाई । 6 साल की जगह 3 साल । अब नहीं आएंगे 4 साल से पुराने नोटिस। बशर्ते कि 50 लाख से बड़ा मामला न हो , वो भी प्रिंसिपल CCIT की परमिशन से

17.  धारा 142(1) के नोटिस भी आएंगे अब फेसलेस एवं ट्रिब्यूनल में  प्रोसीडिंग्स भी फेसलेस हिने का प्रावधान किया गया । इनकम टैक्स सेटलमेंट कमीशन खत्म किया गया ।

18. ट्रस्ट में कॉरपस फण्ड टैक्स फ्री होता है । इसलिए कॉर्पस फण्ड को खर्च करने पर एप्लीकेशन नहीं माना जाएगा । ट्रस्ट में लोन लेकर कोई खर्चा या एसेट एक्वायर की है, तो उसको एप्लीकेशन नहीं माना जाएगा

19. पार्टनरशिप फर्म/AOP/ BOI के डिसॉल्युशन पर  पार्टनर या मेंबर को मिलने वाली एसेट पर कैपिटल गेन की गणना का नया फार्मूला । मिलने वाली एसेट/ मनी की बाजार वैल्यू में से कैपिटल एकाउंट का बैलेंस घटाने पर शेष राशि ।

contributed by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Analysis of web-movie Scam 1992 in Practical Life

पिछले कुछ दिनों से Scam 1992-The Harshad Mehta Story वेब सीरीज़ देख रहा था ! दिमाग में शेयर बाजार, स्टॉक मार्केट, बीएसई, बुल, बेयर, scam, पत्रकार, सीबीआई, सक्सेस और डाउनफॉल ही घूम रहे हैं। एकबारगी फ़िल्म ने सोचने पर मजबूर किया। मौटे तौर पर कुछ बातें समझ आईं। 

💥जब आप तरक्की करते हैं, उसी क्षेत्र में पहले से स्थापित लोगों की आपसे जलने लगती है। आपकी एक गलती उन्हें आपका शिकार करने का मौका देती है।

💥मुसीबत में आपके परिवार के अलावा आपके साथ कोई नहीं खड़ा होता।

💥कुछ अलग तरह के  साथी एक तरह से दुश्मन होते हैं, जो मौका लगते ही चौका लगाते हैं।

💥हर्षद को एक समय स्टॉक मार्केट का अमिताभ बच्चन कहा गया। पर जब वे एक बार फंसे, फंसते ही चले गए। 

💥जिन पर आपका भरोसा होता है, वे सिवाय तसल्ली या आशवासन के कुछ नहीं देते। 

💥आप कितने ही पैसे वाले क्यों न हों, जब समय विपरीत आता है, आपके घर की कील तक बिक जाती है।

💥माया और काया का कोई अभिमान नहीं होना चाहिए। जिस हर्षद ने लेक्सस कार को 10 लाख अतिरिक्त देकर खरीदा, वह अस्पताल में लकड़ी की बेंच पर दम तोड़ गया।

🎯और हां, दस रुपए से दस लाख बना लिए जाएं तो रुक जाना चाहिए। उसे फिर से दाव पर करोड़ नहीं रोड़ मिलती है। सबको प्रॉफिट बनाकर देने वाला मार्केट कभी वापस भी लेता है। लालच बुरी बला है।

💥बड़ा बनने के फेर में गलती सबसे होती है पर जो उस वक़्त उसे बड़ा बनने में मदद कर रहे होते हैं, बुरा वक़्त आते ही निकल लेते हैं। डूबते सूरज के साथ कोई डूबना नहीं चाहता। जब यही सूरज उग रहा होता है, उसकी चमक में जगमगाना सब चाहते हैं।

enjoy watching this movie..........

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Solar Energy Growth Drivers in India

In the era of Corona, we had bitter lessons due to our injustice done with mother-nature in various aspects and one of them is Pollution. Electricity generation from conventional sources is most polluting; wherein government has taken required steps and promoting Solar Power since year 2007. At present, India is one of the largest producers of electricity from renewable energy sources. As on 31^st March 2020, out of total electricity installed capacity in India; 35.86% is share of renewable energy generation capacity. In last year, out of total electricity generated in India, 21.27% was thru renewable energy projects.

The Government of India thru Ministry of New and Renewable Energy is playing very proactive role in promoting the adoption of Solar energy generation by offering various incentives and subsidies for Industrial, commercial, institutional, residential, farmers, village installation. These includes Capital Subsidies, Operating Subsidies in Generation based incentives, Interest subsidies, Viability gap funding, preferred funding, fiscal incentives, captive consumption permissions etc.

Government had launched National Solar Mission to promote Solar Power Generation and usage by industries and consumers, with the ultimate objective of bringing solar power in parity with fossil fuel based conventional energy.  The core objective of Solar Mission is to reduce cost of per unit solar power in India in long term, aggressive research & development to bring better efficiency equipment, large scale manufacturing goals, domestic production of critical raw materials, products, components and allied products.

The government has created a positive environment for foreign investors thru FDI route for investment in Indian solar projects, in-turn achieving lowest cost of per unit solar power generation benefited Indian consumers and power discom. The establishment of best regulatory practices thru dedicated financial institution and nodal agencies to bring lowest cost of funds into solar power generation projects has made India gain its climate control mechanism on very higher levels. This has created wider brand equity of Indian Solar energy policies across the global investor forums. Solar power in India is becoming increasingly cost-competitive as compared to fossil fuel based generation, since the prices of solar panels have declined by almost 82% since year 2007.

RBI has advised for all scheduled commercial banks including solar power projects in the categories priority sector, in addition to existing categories, making significant inroads for solar energy projects for priority sector lending. Domestic funding made easy for industrial solar projects, solar rooftop projects, residential rooftop solar projects and large scale power generation projects.

Industrialists, Entrepreneurs, Investors and Residents shall make it a habit to use solar electricity, since generation of solar power is best solution to save carbon emission. Solar is on technological advancement stage with better efficiency panels available on lower cost. We shall focus on taking benefits of government solar priority funding, subsidies, incentives, equipment funding mechanism, rooftop installation with priority etc to make India self sustainable solar power generation destination.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Liquidity Booster for Domestic Industries by Government

In current scenario, maximum of MSME industries have arrived on a juncture facing big black wall, with no more funds to pump into industries. Hearing this voice, Central Government has come out with certain measures to pump liquidity into market and ease of tax compliance and filings, as detailed below:

MSME Step-1 - 20% top-up loan, on existing outstanding loan to be provided. It will not call additional colletoral, but will be covered with existing security with lenders to MSME. Those MSME having Loan upto 25crs and turnover upto 100crs will be covered in this scheme. This loan will be provided for 4 Years with a moratorium of 12 Months from availement.

MSME Step-2-  Rs. 20,000Crs will be infused as Subordinate Debt for stressed MSME thru CGTSME Trust. Government is also creating a master Fund of Fund, with infusion of  50,000crs as equity to standard and regulated MSME. It will help them to expand their capacities with less paperwork.

MSME Step-3- Definition of MSME changed has been changed with additional classification based on turnover limits (earlier it was based on investment limits). Different between manufacturing and service SME is removed. This will bring turnover limitation to micro industries, wherein their existence will be in controlled environment and boost will be for small industries categories. Wherein Atmanirbhar Bharat needed more secured environment for micro industries.

MSME Step-4- Government has provided secured domestic market to domestic industries; wherein it has banned Global Tender system upto Rs. 200 Crs Government procurement. This will provide boost to msme industries, wherein they will not have to face competition from global players and will get oxygen to survive in front of MNCs and larger corporate. Along with it, Government has also directed to clear all central government outstanding to msme, within 45 days to pump more liquidity to msme.

Labour law and EPF Step - EPF contribution was paid by Government for Covid times, March, April and May 2020. Now this payment support has been extended by another 3 Months, wherein 12%+12% contribution will be paid by Government of India.  Further employer contribution has been reduced from 12% to 10% for those organisation having more than 100 employee registered.

NBFC, MFI, HFC Step - Special Rs. 30,000crs Liquidity window will be given and government will buy debt papers of these institutions even if the same with rating as investment grade. These will be fully guaranteed by Government of India. Further government to provide Rs. 45,000 crs Liquidity to NBFC with this scheme; wherein first 20% Loss will be born by Govt of India. Even unrated papers will get money under this scheme.

Discom Liquidity Steps - Discom are not able to pay the power generation Companies, hence Rs. 90,000crs Special fund created to pay all outstanding of Power Generation Companies; wherein they will be funded thru PFC and REC.

Infra-Contractors Step – Considering lockdown non working period, government has provided an automatic extension of 6 Month to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will also partially release Bank Guarantees to the extent of work completed. It’s a big step to build additional bidding networth capabilities and saving from liquidated damages and penalties.

Real-estate Industry Step - Covid19 shall be treated as act of God, using the Force Major Clause their project registration will be extended by 6 Month automatically; wherein Completion dates of existing projects to be extended automatically by 6 Months by Government authorities. It will be like providing oxygen to realestate segment, already in ventilator stage.

Direct Tax Related Step – for assessment year 2020-21, Government has extended Income Tax Return filing date to 30 November, 2020 (from existing 31^st July, 2020), tax audit date also extended to 31^st October 2020. Government has also reduced Non Salaried TDS and TCS rates by 25%, from existing slab rates. This will be effective from 14^th May 2020 will remain valid till 31^st march,2021. Further Government has directed to issue all pending refunds upto 5 Lakhs to assesses immediately.

If all these steps used with more digital mechanism, ease of business practices and opening of markets for msme, then only AtmaNirbhar Bharat can be thought of with motivated and dedicated Entrepreneurs.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Industrial growth with support of Government and Banks……..during Corona times

Covid virus is no more a fear, but a reality already attacked GDP of our country. Time is warning us to work towards safeguarding our living and businesses from Corona after-effects. Creators of businesses have to fight corona as an economic war, within and outside of India for a longer duration. Industries, Trade and general public shall study corona impact individually and collectively and bring visionary changes in lifestyle and business strategies. At the same time Government and Banks shall work for long term outlook, considering macroeconomic factors and risks, during Corona times :

• World is expecting more de-globalisation; wherein European countries have already made it mandatory to have Government approval for all acquisition by foreign investors, as companies are available at cheaper acquisition prices and there is a fear that China may be eager to take over companies in Europe. Learning from its impact on emerging India, during April 2020, government of India has already announced for prior approval of government, for any direct foreign investment in India, by investors from countries direct neighboring to geographical boundaries of India. It’s an appreciable step taken by India to protect domestic valued companies from corona trade war impact.

• Central Government shall agree for increased funding to fiscal deficit with more support to state government thru overdraft facilities from central government. It will fuel public expenditures by state governments during corona times.

• India is at rating of BBB (lowest investment grade) and 10 years India bond yield 5.94%, wherein USA 10 year paper yield 0.77%. If our rating get further down-graded we will become a Junk Bond and this will crash the economy; hence it will be difficult to print more money.

• Interest rates will go further down, but Banks must pass it on to the borrowers. RBI lends only to the Banks in India and Banks are concerned more about betterment of their own Balance Sheets, than thinking on national and industrial interest. To safeguard of businesses post-covid times, RBI shall start buying Company Bonds.

• Indian economy is lucky to have lower Consumer credits of 13% of total GDP; wherein China has 41% and USA has 79%, this has kept consumers remain stand in difficult corona times.

• Public savings portion in India is just 17% (earlier it was 30%). Out of this, 10% is invested in Real Estate & Gold etc, hence Liquid instrument savings is only 7%. Indian mentality is getting inclined towards consumption economy, rather than saving economy; so there will be no stress in domestic consumption industries in India. It will protect our industries, after corona.

• Economy of Middle-East will be in big trouble, since crude-oil will not go back to 60-70 $ and will remain range bound around $40-45. Indian economy will have positive impacts with lower crude prices during corona times.

• It is expected that by year 2023, approx 39 crore population will come into the middle class earning. Presently only 2% of Indians are investing in Equity shares, with more corporate governance and increase in middle class population, ration of equity investors will increase. The same incremental ratio is expected in mutual fund investments, which is 60% in Mexico, 94% in USA and its only 12% in India. Rising middle class will lead to more investment in equity markets and affordable real estates in long term, to neutralize corona impact.

• If we talk about Indian Rupee, it is under pressure; still India is doing much better with comparison to other European and surrounding countries. India shall ensure that our bond rating shall not go to Junk. It’s evident from history that during our best years of 8% growth, rating of our bonds were not upgraded. So how our fiscal policy will be designed to save india from corona impacts.

In corona scenario, all individual and industries shall conserve cash and be ready for any need occurs for unforeseen circumstances or extended lockdown or longer gestation period for re-start of business. Keep your teams motivated to work in two timelines, what is to be done in current situation and what is target to be achieved in two years. But in any case, companies shall focus to increase equity capital and reduce loans to safeguard in interest payouts in corona times. Its better to get over capitalized, rather than getting disastrous over leveraged balance sheet. The author may be contacted for any strategic advice on case study basis.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Avenues available for CA's in Emerging Indian Economy

We are talking in difficult era of economy; wherein complaining will get us nowhere with negative thoughts; so we shall remain positive to design our career with new avenues. This is the time, we shall reinvent ourselves, and shall focus to design our intellectuals to new dynamic world post Covid, rather than shielding our current job portfolio. Human is inbuilt with specific talent, expertise, likes, abilities etc; only thing is timely redesigning of career matrix makes us fit to the working world. Change is painful and not getting changed is more painful, when your existence is ignored, due to obsolesce; so be adaptive to change.

Like employees, employers are also searching for new avenues for better productivity with lower cost in corona times. People may feel this restrict zone, but we feel its filtration zone for deserving CAs. Covid is greatest ever disaster for manking and its spreading abilities turning the world upside down for a longer period. Large number of industries from capex to opex, are likely to get terribly affected. Cash flows of all businesses eg. Infrastructure, hospitality, banking, tourism, airlines, manufacturing, support services etc will be highly affected; wherein relief will be towards healthcare, online education, cloud working industries etc.

The prefix CA, put before your name is authenticity of a talented and better guided person. Talent is to be proven in bad times, so it’s a wakeup call for all potential talented CAs and finance management professionals, lets prepare your own decision matrix and think on available opportunities. Generally CAs are geared up to assume career in following portfolios :

1. Taxation - Domestic and International

2. Auditing and Statutory practice

3. Management Consultancy Services

4. Project Consultancy

5. Budgeting and Financial management

6. Business management strategies

7. Investment Banking

8. Equity & Debt management services

9. CA to CEO

10. Entrepreneurship

Pre-Covid or Post-Covid, in both scenarios, India was emerging economy with outperforming growth prospects, comparing to economy of developing nations. Post-covid India will be considered as preferred investment destination in manufacturing setup by developed nations across the world and especially migrant industries from China. This will bring bigger opportunities for Chartered Accountants in all verticals of trade and industry. Lockdown period in India has taught new working practices from home, working smartly with remote servers, working with cloud environment, working with informal staffing, working without visiting client’s and customers, working with social meeting apps, working in more dynamic environment.

Negative people consider corona pandemic as hit to economy, but we professionals shall identify, how smartly we have learned so many working strategies sitting at home. Now new business practices will be designed as work from home concept, with reduces manpower infrastructure cost, with lesser travel cost, enhancing working time etc. So be prepared for the same and be flexible enough to adapt all these changes for better productivity within your own periphery. Out of approx. 10 options above, I feel entrepreneurship shall be preferred by CAs in India’s growing economy; wherein automation of processes will be must and will have larger brainstorming field, which can be catered only by CAs. Increasing compliances in Income Tax, GST, MCA, ROC, Banking, SEBI etc. are bringing opportunities in developing new Information Technology tools, Artificial Intelligence, cloud compounding tools to cater employers / clients at very low cost.

Businesses are taking new shape and following new strategies with automated process tools, CAs shall enhance their skills to audit InfoTech processes of these large business groups and MNCs. Startup business needs mentoring from accounting, compliance filings, budgeting, angel funding, PE series A funding etc.; large number of CAs shall target these areas for their job / entrepreneurship. Corona is hitting hard on Europe and USA; bringing more cloud based working to be outsourced from India; CAs must take advantage of this opportunity by learning new skills online and adopt new working avenues, with high margin and bigger volume deliveries. Equity markets will be another big demand job areas for CAs, with their enhanced analytical skills.

Before concluding this article, I will draw your attention; why CA’s cant become CEO (and only target to become CFO). In my management speeches at various professional / social platforms; I take up this subject of CA education syllabus. ICAI syllabus is superb and teaching all of us with all integral aspects of business management, then why CAs develop themselves only in finance and accounting functions; why not develop themselves with extended business management functions. There is no such thing that only management graduates can be CEO, CAs are more qualified and fit for the position of CEO. Most important thing is the managerial skills, as the CEO has to manage the whole organisation, now to attain those managerial skills, keep learning from business surrounding environment and gain expertise. Corona is bringing more opportunities for smart working Chartered Accountants, so lets gear-up to turn new milestones. I always feel pleased to mentor professional colleagues and professionals with my subject knowledge, so we can be contacted thru our email.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.blogspot.com

उद्योग एवं व्यापार ; लोकल से ग्लोबल प्रतिस्पर्धा..... कोरोना परिदृश्य

हम बात कर रहे है विश्व की सबसे भीषण चुनौती कोरोना महामारी के इस परिदृश्य में; कोरोना सिर्फ एक चिकित्सकीय बीमारी ही नही है, परंतु वैश्विक अर्थव्यवस्था को कई दशक पीछे ले जाने वाली भयानक आर्थिक बीमारी है । हम इसको राजनीतिक या अन्य पहलू नही दे कर, सिर्फ उद्योगपति एवं व्यवसायी के हितों के अनुसार ही विवेचन करेंगे ।

कोरोना महामारी से पहले भी भारतीय व्यापार एवं उद्योग मंदी के दौर से गुजर रहा था । यह मंदी सिर्फ हमारे देश की व्यवस्थाओं से नही, बल्कि वैश्विक व्यावसाईक वातावरण से ज्यादा प्रभावित थी । बदलते समय के साथ भारत भी बदलता गया, वैश्विक व्यापार के माध्यम बदलते गए, परंतु नही बदला तो वो मध्यमवर्गीय व्यापारी एवं उद्योगपति, जो इस बदलाव की अनिवार्यता को समझ ही नही पाया । दशकों से व्यापार करने वाले व्यवसायी ने सोचा कि उसकी व्यक्तिगत कुशलता ही उसके व्यापार संचालन का गूढ़ तत्व है, एवं उसने बदलती तकनीक, ऑनलाइन संचार साधनों आदि को अपनाना जरूरी नही समझा, एवं ट्रेडिशनल व्यापारी एवं उद्योगपति पिछड़ता गया ।

समय के साथ आगे बढ़ने हेतु उद्योगपतियों एवं व्यवसायियो को क्या करना पड़ेगा  :-

1.  उद्योगों के वैश्विक वातावरण का निरंतर अध्ययन जरूरी है

2.  अपने उत्पाद का कच्चा माल कहाँ सबसे सस्ता मिलता है, यदि विदेश से इम्पोर्ट जरूरी है तो प्रबंध करे

3.  श्रमिको के काम को मशीनों से कैसे करवाना है, इस हेतु चीन, जर्मनी आदि की तकनीकों का अध्ययन करें

4.  नवीनतम तकनीकों की मशीनों में निवेश करें

5.  गुणवत्ता पर सबसे अधिक ध्यान दे एवम रिसर्च का एक डिपार्टमेंट जरूर रखे

6.  नई पीढ़ी के बच्चो को यात्रा करने की आदत डलवाएं, उनको उद्योग मेलो में जा कर नई तकनीकों से अवगत होने को बाध्य करें

7.  ERP जैसे सॉफ्टवेयर्स द्वारा अपने उद्योगों को संचालित करें

8.  व्यवसाय को पारिवारिक वातावरण से निकल कर पेशेवर बनने हेतु फ्लेक्सिबल बने

9.  पुरातन आदतें छोड़ कर, अच्छे एडवाइजर, कंसलटेंट को उचित भुगतान कर उनकी राय को तवज्जो दीजिये, क्योंकि वह दुनिया भर के नए प्रयोगों को देखते है, एवम आपको सभी तरह से गाइड कर सकते है

10.  फाइनेंस मैनेजमेंट हेतु अच्छे निवेशकों एवं बैंको से सम्पर्क बनाये, एवम कम व्याज पर फण्ड लाने हेतु अच्छे फाइनेंसियल एडवाइजर अपॉइंट करें

11.  बैकवर्ड एवम फारवर्ड इंटीग्रेशन करके लागत को कम करें एवं वॉल्यूम को बढ़ाए

12.  अपनी टीम को समय समय पर ट्रेनिंग दे एवं स्किल को सुधारें

13.  व्यपारियो को अपना वितरण तंत्र सुधारना होगा, इसको ऑनलाइन मार्केटिंग कंपनियों जैसा बनाये

14.  फ़ास्ट डिलीवरी करने से वर्किंग कैपिटल पर ब्याज की बचत करे

15.  ग्राहकों की समस्याओं को सुनकर, तुरंत समाधान प्रदान करे, जैसा कि वैश्विक ऑनलाइन कंपनियां करती है

16.  क्लाउड सॉफ्टवेयर द्वारा माल की खरीद से वितरण तक कि परिधि बनाये

17.  अपना व्यापार एक ही जगह पर सीमित ना रखे, इसको अन्य जगहों पर भी फैलाये, एवं सॉफ्टवेयर द्वारा अपने मोबाइल से ही कंट्रोल करें

18.  अपने उत्पाद से संबंधित अन्य उत्पादों का भी व्यवसाय शुरू करे, जिससे बिक्री आसान होगी

19.  बैंको से वर्किंग कैपिटल लिमिट्स बनाते समय पेशेवर कंसल्टेंट्स की सहायता ले, जिससे लागत कम होगी, एवं फंड अधिक मिलेगा

20.  अधिक से अधिक डिजिटल माध्यमो का उपयोग करें

21.  रोज कुछ नया सीखने का प्रयास करें, एवम समयानुसार व्यावसायिक प्रैक्टिस को बदलें

22.  अन्य सुझाव उद्योग के अनुसार अलग अलग हो सकते हैं, इसकी केस स्टडी अच्छे बिज़नेस कंसलटेंट से करवाये

कोरोना एक त्रासदी है, परंतु कोरोना लॉकडाउन के इस समय को उपयोगी बनाये एवं नई सोच को जन्म दे । आने वाला समय, बहुत ही प्रतिस्पर्धी समय है, अतः पहले से ही बहुत अधिक तैयारी से व्यवसाय का संचालन करना होगा । अब आपकी प्रतिस्पर्धा बड़ी बड़ी ऑनलाइन कंपनियों, जैसे अमेज़न, फ्लिपकार्ट, अलीबाबा, ईबे एवम कई वैश्विक घरानों से है । आज 10 लाख के निवेश की फैक्ट्री में बनने वाले उत्पाद का सीधा कम्पटीशन 5 लाख करोड़ मार्किट वैल्यू की कंपनी से होता है, अतः उनके सिस्टम को निरंतर अध्ययन करें, अथवा उनको समझने वाले योग्य पेशेवर एडवाइजर को अपने व्यवसाय में साथ रखें, तो समय आपका है..... 

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.blogspot.com