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www.icmai.in Peer - Reviewed Quarterly Journal RESEARCH BULLETIN THE INSTITUTE OF COST ACCOUNTANTS OF INDIA Statutory Body under an Act of Parliament ISSN 2230 9241 Volume 44 No. IV January 2019 The CMA professionals would ethically drive enterprises tatement globally by creating value to stakeholders in the socio- economic context through competencies drawn from the integration of strategy, Mission S management and accounting. The Institute of Cost Accountants of India would be the preferred source of resources and professionals for the financial leadership of enterprises globally. tatement Vision S Behind Every Successful Business Decision, there is always a CMA www.icmai.in RESEARCH BULLETIN THE INSTITUTE OF COST ACCOUNTANTS OF INDIA Statutory Body under an Act of Parliament ISSN 2230 9241 Volume 44 No. IV January 2019 Disclaimer The Instute assumes no responsibility for any act of copying or reproducon, whether fully or parally, of any write up/esearch paper which is not the original work of the author. The write up/research papers published in good faith on the basis of declaraon furnished by the authors. All rights reserved. No part of this publicaon may be used or reproduced in any manner whatsoever without permission in wring from The Instute of Cost Accountants of India. Price of Single Copy : ` 400.00 only Annual Subscripon (for four volumes) : ` 1200.00 p.a. Courier Charges : ` 200.00 p.a. for four volumes Month of Publicaon : January, 2019 © 2019 The Instute of Cost Accountants of India Printed and Published by CMA Amit Anand Apte President The Instute of Cost Accountants of India 12 Sudder Street, Kolkata - 700016 Foreword ndia has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering I the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. Stressed assets in public sector banks have plagued the banking sector since long. It is in this context that growth in the banking sector can be envisaged through consolidation of weaker entities with strong players in the market. The recent successful merger of two public sector banks (PSBs), Dena Bank and Vijaya Bank, with Bank of Baroda NSE 2.33 % has paved the way for the future road map of PSB restructuring. It has created the right synergy, achieved scale & resulted in better shareholder value creation. To be globally competitive, we have to build banks that are bigger and stronger than what we have at this time. The faster we do it, the better it would be. The amalgamation of the three banks is the first step to achieving that goal. Amalgamations bring value and efficiencies. Thus, it gives me an immense pleasure to present before you esteemed Research Bulletin of the Institute, Research Bulletin Vol.44, No. IV, January, 2019 issue. This publication brings you in-depth research insights on a wide range of topics on contemporary issues like Banking, Capital Market, Internal Audit, Capital Structure, Green national Accounts, etc. well-written by researchers, academicians and professionals. Wish you all a happy reading and hope you would find it to be an extremely useful tool to enrich your knowledge base. CMA Amit Anand Apte President The Institute of Cost Accountants of India ………………………………………………………………………………………………………………………………… Editor’s Note ndian financial services sector is set to dominate the Indian economy over the next few decades. Banking, capital markets, insurance and asset management are all set I to significantly grow in the next few years. Learning from global financial disturbances and evolving financial technologies, the Industry leaders and the regulators are working on building a sustainable banking environment in India. Foreign institutional investors are back in business and keen to invest in India for the longer term. Large players in fund management industry are exploring investment opportunities and even setting up their business presence in India. The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management (AUM). Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed rapid expansion. The Indian financial services sector is operating in a fast-evolving and dynamic regulatory and tax landscape with an ever growing demand for transparency and efficiency. This makes it extremely important for the industry players or the new entrants to understand the tax and regulatory framework which could have an impact on their business goals. India is today one of the most vibrant global economies, on the back of robust banking and insurance sectors. The relaxation of foreign investment rules has received a positive response from the insurance sector, with many companies announcing plans to increase their stakes in joint ventures with Indian companies. Over the coming quarters there could be a series of joint venture deals between global insurance giants and local players. Research Bulletin, Vol.44, No. IV, January 2019 issue comprises of various blazing topics on Finance, Banking, Capital Markets, etc. would surely improve the knowledge base of readers. Inputs are mainly received both from academicians and professionals. Further, next issue of Research Bulletin, i.e., Vol.45, No. I will be Non-theme too. We look forward to constructive feedback from our readers on the articles and overall development of the Research Bulletin. Please send your mails at [email protected]. We express thankfulness to all the contributors and reviewers of this important issue and wish our readers get requisite insight from the articles. Warm regards, CMA (Dr.) Debaprosanna Nandy Senior Director (Studies & Advanced Studies) Editor, Research Bulletin The Institute of Cost Accountants of India E-mail: [email protected] ………………………………………………………………………………………………………………………………… Journal & Publications Committee: 2018-19 CMA Dr. I. Ashok Chairman CMA Avijit Goswami Member CMA Vijender Sharma Member CMA Papa Rao Sunkara Member CMA P. Raju Iyer Member CMA Biswarup Basu Member CMA Amit Anand Apte President & Permanent Invitee CMA Balwinder Singh Vice President & Permanent Invitee CMA Sucharita Chakraborty Secretary, Journal & Publications Joint Director & HoD, Journal & Publications ………………………………………………………………………………………………………………………………… Editorial Board Prof. Amit Kr. Mallick Former Vice Chancellor, Burdwan University CMA (Dr.) Asish K. Bhattacharyya Director, Institute of Management Technology, Ghaziabad (IMTG) Dr. Ashoke Ranjan Thakur Vice Chancellor, Sister Nivedita University, West Bengal Dr. Bappaditya Mukhopadhyay Professor, Finance & Economics, Great Lakes Institute of Management, Gurgaon Dr. Dilip Kr. Datta Director, Sayantan Consultants Pvt. Ltd, Kolkata Dr. Malavika Deo Professor, Department of Commerce, Pondicherry Central University, Puducherry Dr. G. Nagaraju Associate Professor, National Institute of Bank Management, Pune Dr. P. K. Jain Professor Emeritus, Department of Management Studies, Indian Institute of Technology (IIT) Delhi Dr. Sankarshan Basu Professor, Indian Institute of Management, Bangalore CMA (Dr.) Sreehari Chava Director, Shantiniketan Business School, Nagpur CMA V. S. Datey Consultant, Corporate Laws & Taxation, Nashik Editor: CMA (Dr.) Debaprosanna Nandy Sr. Director (Studies & Advanced Studies) ………………………………………………………………………………………………………………………………… Our Contributors in this Issue Arup Kumar Chattopadhyay Supervisor, Department of Economics, The University of Burdwan, Burdwan, West Bengal [email protected] Debdas Rakshit Supervisor, Department of Commerce, The University of Burdwan, Burdwan, West Bengal [email protected] Malay Kumar Paul Vice President - Commercial Controls, Systems and Process, Birla Corporation Limited, Kolkata, West Bengal [email protected] Nabanita Khuntia Research Scholar, Department of Tourism Studies, Pondicherry University, Pondicherry [email protected] Pankaj Inchulkar Assistant Professor, School of Management, Ajeenkya DY Patil University, Pune [email protected] Pranab Nag Associate Professor, Deptt. of Commerce, Nabadwip Vidyasagar College, West Bengal [email protected] P. Siva Rama Prasad Asst. General Manager (Retd.), State Bank of India, Hyderabad [email protected] Rajbinder Kaur Research Scholar, Department of Commerce, The University of Burdwan, Burdwan, West Bengal [email protected] R Kasilingam Associate Professor, Department of Management Studies, Pondicherry University, Pondicherry [email protected] ………………………………………………………………………………………………………………………………… Sajal Kumar Maiti Professor and Head, Post-graduate Dept of Commerce, Hooghly Mohsin College, Chinsurah, West Bengal [email protected] Sanjay Kumar Mandal Research Scholar, Department of Business Management, University of Calcutta, Kolkata, West Bengal Subhendu Kumar Pradhan Assistant Professor, School of Management, Ajeenkya DY Patil University, Pune, Maharashtra [email protected] ………………………………………………………………………………………………………………………………… Contents Buyback Effects from Investors Perspective 1 Subhendu Kumar Pradhan, R Kasilingam, Nabanita Khuntia, Pankaj Inchulkar Conducting Internal Audit: Cement Industry 12 Malay Kumar Paul Interrelationship between Capital Structure and Dividend