Andhra Chamber of Commerce

www.andhrachamber.com

Vol. LXXI

August 2018

ANDHRA CHAMBER OF COMMERCE

INFORMATION BULLETIN

PROGRESS THROUGH COMMERCE AND INDUSTRY

1 Bulletin Advisory Board

Shri Ch. Venkateswara Rao Contents Vice-President President Desk 4 Shri R.r. Padmanabhan Chairman, Interactive Session on New Comapies Act 2013 – Amendments There To 5 Foreign Trade Sub-Committee Presentation on “Paradise Regained: Aimla Enables Shri V.v. Sampath Kumar Strategic Profitability For The Technopreneur” 9 Chairman, Indirect Taxes Sub-Committee Foreign Trade 12

Shri K.n. Suresh Babu Start up India Recognition for Accbi 15 E.c. Member Section 56(2)(Viib) of the Income Tax Act, 1961 and Issue Price of Unlisted Equity Shares – Implications for Shri M.k. Anand Start-ups – Mr. P.S. Kumar 18 Chairman A Tale of Two Trains I.t. Sub-Committee – Mr. R.R. Padmanabhan 21 Recent Judgments in Vat Cst Gst Shri V.s. Prasanth Kumar – Mr. V.V. Sampathkumar 23 E.c. Member Trade Union to pay Compensation for Defaming the Management ------– Mr. S. Ravindran, Senior Advocate 26 Editor And Publisher Strategy, Execution and Delivery – Sed Model Shri. P. Nandagopal – Mr. M.K. Anand 27 Secretary President of India Andhra Chamber of Commerce – Mr. M.S. Pandian, Advocate 29 ------The 8 Active Listening Secrets Printers – Mr S. Prakash, Rathinam Printers CEO of See Change Consulting 31 New No 27, Old No 13, Consumer Price Index Numbers 32 Angamuthu Street, Royapettah, 2 Chennai - 600 014 President Desk

Dear Members, he Micro, Small and Medium Enterprises (MSMEs) are a vital part of the Indian Economy contributing Tto over 45% of the Industrial Production and around 40% of the total exports. MSMEs are the largest contributor in terms of employment generation in the manufacturing sector. MSMEs are developing as part of the value chain in almost all distinguished industry sectors like automotive industry, garments, textiles, food processing and leather industry. The MSME n was defined in the year 2006 on the basis of capital investment made in plant and machinery excluding investments in land and building. After passing of 12 years with continued erosion of value of Rupee and recent demonetization measure, there is a demand from the MSME for upward revision of the threshold limit. Adjusting the inflationary conditions, there is a need for enhancement of the limit at least by three to four times. The Governments of India have now proposed to change the criterion of defining MSMEs using turnover as the basis. The turnover basis is more advantageous and realistic as it would be transparent and the authorities could always cross check the turnover through GSTN plat form. To curb the practice of under reporting on employment, value of plant and machinery in the MSME sector, the Government should enact the draft proposals for suitable amendments to the definition of MSMEs at the earliest. Needless to add that many sectors where in MSMEs have substantial share such as Automotive components, food processing, pharmaceuticals among others have been craving for many fold increase in the investment limit to be compliant of the new mandatory and industrial standards. The Ministry of MSME have proposed the turnover based criterion for MSMEs with a view to facilitate flow ofcredit to MSME sector without the need of the collaterals, third party guarantees and certification from the Accounting Professionals periodically.The lender banks should give importance to Project viability and secure the credit facility purely on the primary security of assets financed. Over all, the new definition has a vast improvement over the earlier definition and should help MSMEs to face the new challenges in a better time frame. Dr. V.L. Indira Dutt President

3 CHAMBER News “Interactive session on New Companies Act – Amendments thereto” on August 2, 2018. n “Interactive Session on New Companies Corporate Affairs constituted a Companies Law A Act – Amendments thereto” organsied by Committee for addressing difficulties of the stake the Chamber was held on August 2, 2018 at the holders in complying with the rules. conference Hall of the Chamber at Chennai office. The amendment Act of 2017 has introduced Shri M.R. Bhat, Regional Director (South) and changes in the Companies law, especially in relation to Shri A.S. Ponraj, Registrar of Companies, Tamil importance of timely filing of forms, liberalization of Nadu, Ministry of Corporate Affairs, Government process and procedure, more specifically for granting of India were the Chief Guest and Guest of Honour. inter-corporate loan & managerial remuneration, Shri G. Ramachandran, Chairman, Company Law enlarging the scope of accountability, disclosures, Sub-Committee of the Chamber was the coordinator investor protection and corporate governance. of the programme. The Companies (Amendments) Act 2017 Dr.V.L. Indira Dutt, President, Andhra Chamber broadly sought to strengthen corporate Governance of Commerce welcomed the Chief Guest, Guest Standards, initiate strict action against defaulting of Honour, Speaker and the participants. In her companies and help improve ease of doing business welcome address Dr.V.L. Indira Dutt observed: in the country”. “Enactment of the Companies Act 2013 was one Shri M.R. Bhat, Regional Director (South) in of the most significant legal reforms in India, aimed his inaugural address observed:” The Government at bringing Indian Companies Law in line with the considered many of the suggestions made by global standards. the Committee and introduced the Companies On many fronts, corporate sectors faced (Amendment) Bill 2016 in the Lok Sabha in March significant implementation challenges. The 2016. It was later referred to the standing Committee Government continued to receive representations on Finance for further examination. After considering from several quarters for further review and the suggestions of the Standing Committee and simplification of the 2013 Act. The Ministry of other related developments, the 2016 Bill renamed

4 as the Companies (Amendments) Bill 2017 and it was Further, the amendments made so far is expected to reintroduced in Lok Sabha and passed in July 2017. address the difficulties in implementation, facilitating The Amendment Bill was approved by the Rajya ease of doing business, rectifying omissions and Sabha on December 19, 2017. It got assent from the inconsistencies in the Act. The 2017 Amendment Act Honourable President of India on January 3, 2018 has enlarged the scope of Small Companies, stringent and has been notified in the Official Gazette of the provisions for delayed Compliances, Harmonization same date with staggered implementation dates. with the Accounting Standards, the Securities and Several provisions have been amended to align the Exchange Board of India Act, 1992 and the regulations Act with various rules and regulations of the SEBI made thereunder, and the Reserve Bank of India Act, and the RBI -- certain sections which dealt with 1934 and the regulations made thereunder”; insider trading, forward dealing have been omitted. Shri G. Ramachandran, Practicing Company Disclosures to be made in the prospectus have also secretary in his presentation covered in detail been aligned with the powers of SEBI to regulate the amendments made to various sections, objectives, IPOS. issues and difficulties faced by the stake holders and One of the most applauded amendments made in requisite remedial action by the Government. the amendment act is that – the quantum of penalty Earlier Dr.V.L. Indira Dutt, President extended will now be levied taking into consideration, the size floral welcome to the Chief Guest Shri M.R. Bhat and of the company, nature of business, injury to public Guest of Honour Shri A.S. Ponraj. interest, nature and gravity of default, repetition of More than 65 participants drawn among the default etc. Member-corporate sector have participated in the The 2017 Amendment Act addressed difficulties Interactive Session. in implementation, facilitated ease of doing business Shri M.R. Bhat, Shri A.S. Ponraj and Shri helped achieving better harmonization with other G. Ramachandran answered the questions raised by statutes such as the Reserve Bank of India Act, the participants. 1934 and regulations made there under and rectifies inconsistencies in the 2013 Act. The Government of Later, Dr. V.L. Indira Dutt, President presented India is adopting a highly collaborative approach and mementos to the Chief Guest , Guest of Honour and addressing the various challenges. the Speaker. Shri A.S. Ponraj, Registrar of Companies in his The meeting concluded with a hearty vote of thanks address observed:” The companies are expected to proposed by Shri C. Nagendra Prasad, Vice-President. retain more transparency in their activities and provide a true and clear picture to the stake holders.

5 SEMINAR ON A.P. Capital Present & Future Plan On August 13, 2018

Seminar on A.P. Capital – Present & Future Plans It is heartening to note that the state has also started Aorganize by the Chamber office at Vijayawada to focus on the fields of information technology was held on August 13, 2018 at Hotel Gateway, and biotechnology. Several major industries are in Vijayawada operation in Automobiles and Auto components Dr. Sreedhar Cherukuri, IAS., Commissioner of Industry, Cement, Sugar, Spices, Mines and Minerals, Capital Region Development Authority (CRDA) Textiles and Apparels, Bulk drugs and Pharmaceuticals, Government of Andhra Pradesh was the Chief Guest. Horticulture and Poultry farming among others. Dr.V.L. Indira Dutt, President, Andhra Chamber I am glad to learn that the State Government is in of Commerce welcomed the Chief Guest and the the process of developing Industrial Parks at different Members Present. regions, for specific groups of industries for overall In her welcome address Dr.V.L. Indira Dutt economic growth and development of the State. observed: “The Government of Andhra Pradesh under the able leadership of our respected Chief Minister, Food parks covering value added Rice Products, Hon’ble Shri N. Chandrababu Naidugaru is exerting Dairy, Horticultural, Marine products and Agri every moment of time and energy for fast development Export Zones covering Vegetables, Edible oils, Red of New Capital City of our State “Amaravathi”. Chillies, Mangoes and Mango pulp have been initiated to facilitate engaging available skilled /semi-skilled The economy of Andhra Pradesh is multi-faceted, labour force. with the coastal region providing requisite environment for development of manufacturing activities – the fertile Andhra Chamber of Commerce established in the river plains supporting agriculture and allied activities year 1928 is in the 90th year of service to Industry and the districts in Rayalaseema being conducive for and trade with it’s offices at Chennai, Secunderabad, mineral based industries. The resource diversity is Visakhapatnam, Vijayawada and Nellore. The complemented by fairly well developed infrastructure Chamber has more than 1750 Members and 55 Trade facilities and a favourable policy environment. The & Industry associations affiliated to it. State has also been rated as the Number One State in the country in the Ease of Doing Business -- ranking I am also happy to inform the august gathering that by the - World Bank in it’s recent study made during the Chamber will be extending the Skill Development the current fiscal. support to the unemployed youth of this region with

6 the support of educational institutions like Siddhartha He said 43,000 crore proposed to be invested Academy on the lines of guidance offered by the by government on infrastructure in the first phase Government of Andhra Pradesh. of development of Amaravati and 8000 crore The motto of the Chamber is PROGRESS expected to come from private investors for setting up THROUGH COMMERCE AND INDUSTRY. universities, hotels, and other economic activity, will The Chamber has been striving it’s best to promote lead to an economic activity to the tune of 1 lakh domestic as well as Foreign Trade. I appeal to trade and crore in next 3-4 years in the capital region. Industry of this part of the State to avail the services In normal circumstances, the year-on-year offered by the Chamber towards promotion of their economic growth due to such massive projects like business and industry. the capital city construction tends to be anywhere Shri M. Rajaiah, Chairman, Vijayawada Advisory between 15 to 20 percent. “Now it is up to us to see Committee introduced the Chief Guest Dr. Sreedhar that the very objective of Amaravati – to provide equal Cherukuri, IAS., Commissioner of Capital Region opportunities of growth to everyone in the world Development Authority (CRDA) Government and help them own up the city and consider it their of Andhra Pradesh to the Member –Participants second home,” he said while seeking cooperation from present. the people in the region, especially from the business community. Capital city project was expected to create Dr. Sreedhar Cherukuri, in his address observed: a Rs. 1 lakh crore economy in the coming three to four “Tremendous growth took place, particularly along years. the Vijayawada-Guntur highway, and there was a need to make changes to the existing approved road The capital region master plan was being revised in network and other areas of development. view of the rapid growth in population density in the last couple of years which resulted in the mushrooming He said infrastructure works costing up to Rs. of layouts devoid of proper roads. The revised plan 44,000 crore would gain momentum in Amaravati in would ensure orderly growth a month and private investments amounting to nearly Rs. 8,000 crore were in the pipeline over and above More than 75 participants were present Dr. the expenditure being incurred by the CRDA. Sreedhar Cherukuri clarified the doubts expressed by the members present. The 94 km-long Inner Ring Road, which connects Vijayawada, Amaravati and Guntur, was in the final The Meeting concluded with a hearty vote of stages of notification and 320 km of six and eight-lane thanks proposed by Shri B.S.Koreswara Rao, Member, roads would be ready in another six months. Vijayawada Advisory Committee, ACC.

7 Presentation on “Paradise Regained: Aimla Enables Strategic Profitability for the Technopreneur” on July 25, 2018

he 80th Joint Meeting of Andhra Chamber our respected Chief Guest and Speaker Dr. Bala V. Tof Commerce and Madras Management Balachandran. He is no stranger to our business as Association was held on July 25, 2018 at the well as academic circles. However, it is customary in conference Hall of the Madras Management Centre, an occasion like this to introduce the Chief Guest for Chennai – 600 006. the information of the new comers. Prof. Bala V.Balachandran, Founder, Dean & It is really a difficult task to say briefly about Dr. Chairman, Great Lakes Institute of Management Balachandran. His Bio-data runs to many pages. In was the Chief Guest. Dr.V.L. Indira Dutt, President, view of time constraints my introduction will be a Andhra Chamber of Commerce was the Guest of brief one and I convey my apologies. honour. Dr. Bala V. Balachandran is a BSc (Hons.) in Shri R.Srikanth, former President of MMA Mathematics & Statistics from Annamalai University. delivered the welcome address. Group. Capt He obtained Doctorate in Industrial Administration R.Vijayakumar introduced the Chief Guest and the and MBA from Carnegie-Mellon University, USA. Guest of Honour to the Members present. He began his teaching career in 1960 while a Dr.V.L. Indira Dutt, President, Andhra Chamber graduate student at Annamalai University, India. of Commerce delivered the opening remarks: In 1967 he moved to the University of Dayton and Shri B.Gautham, Co-Chairman, Entrepreneurs in 1971 to Carnegie-Mellon University, Pittsburgh, Sub-Committee of the Andhra Chamber of USA where he taught management courses while Commerce introduced the Chief Guest to the working on his doctorate. In 1973 he joined member Present. In his introduction Shri Gautham the Kellogg Graduate School of Management observed: “I deem it as a proud privilege to introduce faculty. From 1979 he chaired the Department of

8 Accounting and Information Systems; in 1984 he was or job. Successful Managers have to keep themselves appointed Distinguished Professor of Accounting abreast of the changes that are happening in the and Information Systems and Decision Sciences. He field and move accordingly. Equally, leaders in the was also Director of the Accounting Research Centre Business or Industry should align themselves to until 2006. the changes by educating their staff Members to He has the rare honour (for an Indian in America) understand the delegated task and ensure success. of having an endowed chair professorship in his name. It is our understanding that Artificial Intelligence Several colleagues from Kellogg, including Donald is the broader concept of machines being able to carry P. Jacobs (Kellogg Dean Emeritus), Roger Nelson, out tasks in a way that we would consider it “smart”. (retired Deputy Chairman for Ernst & Young), and On the other hand machine learning is a sub-field Harry Kraemer Jr., (former chairman and CEO of of Artificial intelligence which evolved from pattern Baxter), have led a campaign to raise $1 million recognition and computational learning theory that for an endowed professorship at Kellogg School of gives computers the ability to learn without being Management in Prof. Bala V Balachandran’s name explicitly programmed. To that extent machine in recognition of his invaluable and tireless service to learning is a necessary condition for the Artificial the Institute over the last three decades. Intelligence to flourish.

He is the recipient of the fourth highest Policymakers also should make Artificial Intelligence a civilian award of the Government of India the critical component for the Prime Minister’s flagship ‘PADMASHRI’ in 2001, awarded in recognition of programmes like Make in India, Skill India, his contribution towards higher education in India. and Digital India programmes by offering He is the Founder and Dean, Great Lakes adequate incentives for manufacturers and Institute of Management, Chennai, India. J L service providers. Kellogg Distinguished Professor of Accounting and I am happy M.M.A and the Andhra Chamber Information Management (Emeritus in Service), of Commerce have aligned themselves to organise North-Western University, Illinois, USA”. programmes and training sessions on Management Dr.V.L. Indira Dutt in her address observed: topics for the benefit of the Industry and Trade. “I deem it a privilege and pleasure to address this I appreciate the efforts taken by Shri. R.R. august gathering on the occasion of 80th Joint Padmanabhan, Shri M.K. Anand, Shri B. Gautham Meeting of the Andhra Chamber of Commerce and and Group Capt. Shri. Vijayakumar and his team for Madras Management Association on managerial all their efforts in organising the Presentation Meetings topics. No doubt, it is a joyous occasion for all of us on various Management topics continuously for the for more than one reason, first being the Mile stone benefit of the Chamber Members. reached for the joint effort of Andhra Chamber of I thank all the Corporate Trainers who have Commerce and MMA and the second reason being addressed our Members on earlier occasions for their Padmashri Professor, Dr. V. Bala Balachandran, JL presence to day. Kellog Distinguished professor of Accounting and Information Management – Emeritus in service – I wish, apart from these Presentation Meetings, a beacon among the Management consultants in the MMA and the Chamber should organize one India and abroad who is here with us to address day sessions and special programmes on the current our Members on this most valuable and current Management topics at regular intervals at least once management topic of the day. in three months. Management education gives the required skill Dr. Bala V.Balachandran in his address observed: sets, vision and focus to reach the Goal. Managers “AIMLA – Artificial Intelligence, Machine require a wide array of both concrete skills and Learning and Analytics, it enables strategic personality traits to be successful in their profession profitability for Technopreneurs. It is a method

9 of reshaping employment and the future of work, For India to maximally benefit from the Artificial enabling the emergence of new business innovations Intelligence revolution, it must adopt a deliberate and competition. policy to drive AI innovation, adaptation, and AI & ML have become a regular entry in the production in sectors beyond consumer goods and vocabulary of Digitization. Analytics is added to the information technology services. terminology now. Presently disruptive innovations Dr.Bala V. Balachandran answered the questions in digitization, analytics, artificial intelligence and raised by the Member-participants. automation are helping businesses, irrespective of Shri R. Srikanth, former President, MMA their size. Presented mementos to Dr.Bala V.Balachandran, Artificial Intelligence, Machine Learning and Chief Guest and Dr.V.L. Indira Dutt, Guest of Analytics in a way are helping the trade and industry Honour. to improve their business decisions, increase The meeting concluded with a vote of thanks productivity, deliver faster, respond sooner to the proposed by Gp. Capt.Vijayakumar, Regional customer, thereby creating performance, productivity Director, MMA. and opportunities for business and economy. More than 250 Members drawn among Andhra Continuing this trend, the new terminology Chamber of Commerce and MMA participated in AIMLA together with technological capabilities the meeting. will have profound implications for business, the economy and more broadly for the society. Condolence Dr. M. Karunanidhi, former Chief Minister of Tamil Nadu State

Dr. M. Karunanidhi, former Chief Minister of Tamil Nadu State passed away on August 7, 2018. He was affectionately called by people of Tamil Nadu as Kalaignar. He was a mass leader who held sway over the State with his magnetic personality for decades. As a protégé of Periyar and Anna, he came to symbolize the Dravidian movement and stood for Self-respect, Social justice and Women’s Empowerment. The passing of the great peoples’ leader is an irreparable loss not only for the State of Tamil Nadu but also for rest of India. May his Noble soul rest in peace!

Shri Atal Bihari Vajpayee, former Prime Minister of India Shri Atal Bihari Vajpayee, former Prime Minister of India passed away on August 16, 2018. He was an excellent parliamentarian, poet, orator and able administrator. He was a Member of the Indian Parliament for over four decades, having been elected to the Lok Sabha, the lower house, ten times, and twice to the Rajya Sabha, the upper house. He was conferred with India’s highest civilian honour, the Bharat Ratna, by the President of India, Pranab Mukherjee in 2015. In his demise the nation has lost a true patriot. May his Noble soul rest in peace!

Foreign Trade – Statistics

India’s Foreign Trade (Merchandise): July 2018

I. MERCHANDISE TRADE at Rs. 1,77,041.47crore in July 2018 as compared to EXPORTS (including re-exports) Rs. 1,45,308.10crore during July 2017, registering a Exports during July 2018 were valued at US $ positive growth of 21.84 per cent. 25.77 Billion as compared to US $ 22.54 Billion During July 2018, major commodity groups of during July 2017 exhibiting a positive growth of export showing positive growth over the corresponding 14.32 per cent. In Rupee terms, exports were valued month of last year are

Cumulative value of exports for the period 78.54 Billion as compared to US$ 69.70 Billion for April-July2018-19 was US$108.24 Billion (Rs the corresponding period in 2017-18, an increase of 7,29,823.08crore) as against US $94.76 Billion (Rs 12.69 %. 6,10,780.14crore) registering a positive growth of IMPORTS 14.23per cent in Dollar terms and 19.49 per cent in Imports during July 2018 were valued at US$ Rupee terms over the same period last year. 43.79 Billion (Rs3,00,784.72crore) which was 28.81 Non-petroleum and Non Gems and Jewellery per cent higher in Dollar terms and 37.28 per cent exports during July 2018 were valued at US $ 18.68 higher in Rupee terms over the level of imports valued Billion as compared to US $ 16.98 Billion during at US$ 33.99 Billion (Rs. 2,19,108.89crore) in July July 2017 exhibiting a positive growth of 9.98 per 2017. Cumulative value of imports for the period cent. Non-petroleum and Non Gems and Jewellery April-July2018-19 was US$ 171.20 Billion (Rs. exports during April-July2018-19 were valued at US$ 11,54,881.70crore) as against US$ 146.26 Billion

11 (Rs. 9,42,740.00crore) registering a positive growth Major commodity groups of import showing high of 17.05 per cent in Dollar terms and 22.50 per cent growth in July 2018 over the corresponding month of in Rupee terms over the same period last year. last year are:

CRUDE OIL AND NON-OIL IMPORTS: Gold import in July 2017. Non-Oil and Non-Gold Oil imports during July 2018 were valued at US$ imports in April-July 2018 valued at US $ 112.80 12.35Billion(Rs. 84,828.57crore) which was 57.41 billion has recorded a positive growth of 10.74 % as percent higher in Dollar terms and 67.76 percent compared to Non-Oil and Non-Gold import in April- higher in Rupee terms compared to US$ 7.84 Billion July 2017. (Rs. 50,565.29crore) in July 2017.Oil imports during II. TRADE IN SERVICES (for June, 2018, as per April-July2018-19 were valued at US$ 46.98 Billion the RBI Press Release dated 14th August (Rs. 3,17,097.71crore) which was 51.45 per cent 2018) higher in Dollar terms and 58.58 percent higher in EXPORTS (Receipts) Rupee terms compared to US$ 31.02 Billion (Rs. Exports during June 2018 were valued at US$ 1,99,961.19crore) in the corresponding period last 16.87Billion (Rs.1,14,380.52Crore) registering a year. positive growth of 4.32per cent in dollar terms as compared to negative growth of 7.91per cent during In this connection it is mentioned that the global May2018(as per RBI’s Press Release for the respective Brent price ($/bbl) has increased by 53.16% in July months). 2018 vis-à-vis July 2017 as per data available from US IMPORTS (Payments) Energy Information Administration (EIA). Imports during June2018 were valued at US$ Non-oil imports during July 2018 were estimated 10.30Billion (Rs. 69,820.11Crore) registering a at US$ 31.44Billion(Rs.2,15,956.15crore) which was positive growth of 0.89per cent in dollar terms as 20.23 per cent higher in Dollar terms and 28.13 percent compared to negative growth of 6.48per cent during higher in Rupee terms compared to US$ 26.15 Billion May 2018 (as per RBI’s Press Release for the respective (Rs. 1,68,543.60crore) in July 2017.Non-oil imports months). during April-July2018-19 were valued at US$ 124.21 III. TRADE BALANCE Billion(Rs.8,37,783.99crore) which was 7.79 per cent MERCHANDISE: The trade deficit for July 2018 higher in Dollar terms and 12.79 percent higher in was estimated at US$ 18.02Billionas against the deficit Rupee terms compared to US$ 115.23 Billion (Rs. of US$ 11.45Billion during July 2017. 7,42,778.81crore in April-July, 2017-18. SERVICES: As per RBI’s Press Release dated 14th Non-Oil and Non-Gold imports in July 2018 August 2018, the trade balance in Services (i.e. net valued at US $ 28.47 billion has recorded a positive export of Services) for June,2018 was estimated at growth of 18.42 % as compared to Non-Oil and Non- US$ 6.57Billion.

12 OVERALL TRADE BALANCE: Taking April-July2017-18. (Services data pertains to April- merchandise and services together, overall trade June 2018-19 as June 2018is the latest data available deficit for April-July2018-19 is estimated at US$ as per RBI’s Press Release dated 14th August 2018) 43.77Billion as compared to US$ 34.07 Billion during ****

MERCHANDISE TRADE EXPORTS & IMPORTS: (US $ Billion) (PROVISIONAL) JULY APRIL-JULY EXPORTS (including re-exports) 2017-18 22.54 94.76 2018-19 25.77 108.24 %Growth 2018-19/ 2017-18 14.32 14.23 IMPORTS 2017-18 33.99 146.26 2018-19 43.79 171.20 %Growth 2018-19/ 2017-18 28.81 17.05 TRADE BALANCE 2017-18 -11.45 -51.50 2018-19 -18.02 -62.96 EXPORTS & IMPORTS: (Rs. Crore) (PROVISIONAL) JULY APRIL-JULY EXPORTS(including re-exports) 2017-18 1,45,308.10 6,10,780.14 2018-19 1,77,041.47 7,29,823.08 %Growth 2018-19/ 2017-18 21.84 19.49 IMPORTS 2017-18 2,19,108.89 9,42,740.00 2018-19 3,00,784.72 11,54,881.70 %Growth 2018-19/ 2017-18 37.28 22.50 TRADE BALANCE 2017-18 -73,800.79 -3,31,959.86 2018-19 -1,23,743.25 -4,25,058.62 SERVICES TRADE EXPORTS & IMPORTS (SERVICES) : (US $ Billion) (Provisional) JUNE 2018 EXPORTS (Receipts) 16.87 IMPORTS (Payments) 10.30 TRADE BALANCE 6.57 EXPORTS & IMPORTS (SERVICES): (Rs. Crore) (Provisional) JUNE 2018 EXPORTS (Receipts) 1,14,380.52 IMPORTS (Payments) 69,820.11 TRADE BALANCE 44,560.40 Source: RBI Press Release dated 14th August, 2018

13 ACC Business Incubator by Andhra Chamber of Great Commerce is recognized News …… by Startup India….

onorable Prime Minister of India Shri eco system for nurturing innovation & start-ups HNarendra Modiji has unveiled a Startup Eco for sustainable economic growth and also for the system by name Startup India in January 2016. An generation of large scale employment opportunities. action plan is formulated for the purpose of creating ACC Business Incubator by Andhra Chamber of an ecosystem for the startups and also for ease of doing Commerce is recognized as an Incubator by Startup business. Necessary amendments have been made India Hub. in the business and environmental laws conducive Please click the following Link to visit ACC to roll out their venture. An Inter ministerial board Business Incubator in Startup India Hub has been setup to avail the benefits and incentives through Startup India Action Plan 2016. https://www.startupindiahub.org.in/content/ sih/en/search.html?states=sih:location/india/tamil- By and large, Startup India is a flagship initiative nadu&roles=Incubator&page=0 by the Government of India intended to build an

14 Proposed Schemes & Incentives under Startup India Action Plan 2016: 1. Compliance Regime based on Self-Certification. 2. Startup India Hub 3. Rolling out of Mobile App & Portal: Ease of Doing Business 4. Legal Support and Fast-Tracking Patent Examination At Lower Costs: 5. The Relaxed norms of public procurement for startup 6. The insolvency and Bankruptcy bill 2015 (IBB) 7. Provide funding support through Fund of Funds with a corpus of INR 10,000 Crore (INR 2,500 Crore over a period of 4 years) 8. Credit Guarantee Fund for Startups 9. Tax Exemption on Capital Gains 10. Tax Exemption to Startups for 3 years 11. Tax Exemption on Investment above fair market value 12. Industry –Academic partnership Incubators 13. Launch of Aral Innovation Mission (AIM) with self employment and Talent utilization (SETU) program 14. Harnessing private sector Enterprise for Incubator Set Up 15. Providing Innovation Centres at national Institutes 16. Setting Up of 7 New research parks modelled on IIT Madras Research Park 17. Promoting Start-ups in Bio Technology Sector 18. Launching of Innovation focused programme for students

Definition of Startup – only to receive incentives from government 1. Not more than 5 years old registered firm or a Company registered in India 2. Turnover does not exceed 25 crores in any year of operations 3. Should have funded by Venture Capital 4. Fostering Innovation. A certification to inter-ministerial Board has to be obtained to get all the incentives. Any Startup Incubated at ACC Business Incubator will receive the above said benefits and the Incubator team will help and mentor the Startups to receive those benefits and Incentives by Startup India. We welcome you to incubate your Business Idea in to ACC Business Incubator. We will transform your Idea in to a Viable Business Entity.

For further details please contact Prof. C. Vasudevan, Director, ACC Business Incubator # 23, Third Cross Street, West CIT Nagar, Nandanam, Chennai - 600 035 Tel: 044 2431 5279 E Mail: accbusinessincubator @gmail.com 15 Shri Subbu Sundaram, Proprietor, Annam Associates and Member of the Executive Committee of the Chamber is truly blessed to perform Kumbhabhishakam of Sri Kasi Viswanathaswamy Temple in Varanasi. It is a great achievement for a person who was able achieve this great task of performing Kumbhabhishakam of Sri Kasi Viswanathaswamy temple after 238 years. Shri Subbusundaram has also been contributing to the development of many temples in Chettinadu. The Chamber conveys its felicitations and Shri Subbu Sundaram, congratulations Shri S.Subbusundaram and E.C. Member, ACC his wife Smt. Annapoorani on this great achievement and wish them many more laurels.

Shri G. Sudhakar has been a member of the committee of administration of the Plastic Export Promotion Council for more than 15 years. He has served as regional Chairman of Southern Region for the Plastics Export Promotion Council for 3 terms of 3 years each. Then he became Vice Chairman and subsequently became the Chairman of the Plastics Export Promotion Council for the year 2013-14 and 2014-15. The Council recognized the services of Shri G.Sudhakar as Chairman of the Plastics Export Promotion Council by presenting a Shri G.Sudhakar is the Chairman of the citation and a memento on the July 21, 2018. Bliss Group of Companies The Chief Guest Honourable Shri Subhash Desai, Minister for Industries & Mining, Government of Maharashtra honoured Shri Shri G.Sudhakar is the Chairman of the Bliss Group of Companies G. Sudhakar with memento and citation on served as a Member of the Plastics Export Promotion Council that occasion. for more than 20 years. He is associated with many professional associations of packing like Association of Laminated packaging The Chamber conveys its felicitations and Manufacturers, All India Federation of Plastic Industries and congratulations to Shri G.Sudhakar, former Chambers of Commerce like Andhra Chamber of Commerce President on this happy occasion and wish and Madras Chamber of Commerce. him many more laurels.

16 Section 56(2)(viib) of The Income Tax Act, 1961 and Issue price of unlisted equity shares – Implications for start-ups Shri P S Kumar Senior Partner, Brahmayya & Co Introduction - Income From Other Sources Gift Tax specified. This is applicable to “any person”. It may Of late, section 56 of The Income Tax Act, 1961 be noted that the definition of “person” is as per (the Act) has become one of the most actively engaged the Act. It is very wide and is contained in section parts of the Act. Section 56 deals with “Income from 2(31) of the Act in an inclusive way. It goes beyond Other Sources”, traditionally, the residuary part of individuals and includes partnership firms etc. the Act for items of income that did not fit elsewhere. Raising share capital by start-ups and new com- There were times, one did not envisage any major panies impact from this part of the statute in the ordinary Clause (viib) of sub-section 2 of Section 56 is course of commercial life. As everyone knows, The applicable to companies not being companies in Gift Tax Act was abolished by the Finance Act, 1998. which the public are substantially interested (a However, it is now finding place in the statute books prime example being a listed company) and deals through amendments to section 56. Where gift tax with different aspects. It deals with consideration was donor-based i.e. the tax had to be borne by for issue of shares by companies and taxability of the person who gifted, now as per section 56, the consideration where it exceeds the fair market value recipient is liable for income tax on gifts received of the shares issued. This has particular relevance to subject to certain exceptions. One would do well start-up companies where valuations are made on to read clause (x) of sub-section 2 of Section 56 in the basis of potential rather than past performance. order to understand how much the statute has been Private equity investment is typically routed into tightened as regards receipts of money or assets these kinds of ventures based on the potential where

17 investors see value based on the merit of the ideas has solely relied on the assumed data without and are prepared to nurse their investments over a verification of the veracity of data. Also, the AO few years without expecting any return in the form is convinced of the same by the disclaimer of the of dividends. What these investors are really looking merchant banker which runs as follows - “ In for is capital gains. Therefore where a company preparing the Final Report, SPA has relied upon has issued shares for a consideration and where the and assumed, without independent verification, Assessing Officer (AO) feels that the amount received the truthfulness, accuracy and completeness of is far more than their real worth i.e. the fair market the information and the financial data provided value, the excess will be taxable under section 56(2) by the company, SPA has therefore relied upon all (viib) (However, It may be noted that this provision does specific information as received and declines any not apply to venture capital undertakings). Therefore responsibility should the results presented be affected there is a requirement that the shares be valued by by the lack of completeness or truthfulness of such professional valuers. information.” Who can value these shares 3. Thereafter the AO rejects the valuation arrived Rules 11U and 11UA of The Income tax Rules, at by the DCF method and substitutes net asset 1962 (The Rules) are the relevant rules that provide value which is Rs.9.60 per share. Thus, according guidance and direction on valuation of shares. The to the AO, the excess of consideration over the fair Rules read together provide that the valuation shall market value is Rs.1.27 crores which then is added to be done by a merchant banker and that in valuing, the income of the assessee-company. Discounted Free Cash Flow (DCF) method shall be 4. The assessee-company fails in appeal at the CIT used. (Appeals) and prefers an appeal before the ITAT. The Expectations in the valuation exercise and the ITAT rejects the arguments of the assessee-company failings and decides in favour of the Revenue. While the rules are now clear as to the manner of What is interesting is that the erudite manner valuation and who should do the valuation, a recent which the AO displays and demolishes the case of decision by the Income Tax Appellate Tribunal the assessee-company in dealing with concepts such (ITAT) has set the alarm bells going. The recent as (a) cashflow to equity and the unrealistic nature decision of the ITAT in the case of Agro Portfolio (P.) of discount rate adopted (b) risk-free return rates Ltd. v. Income Tax Officer, Ward 1 (4), New Delhi, assumed which are not supported by reality, (c) [2018] 94 taxmann.com 112 (Delhi - Trib.) provides benchmarking expected returns from the markets an inkling that is alarming for what the future may and the incorrect assumption of beta at 1 and (d) hold for valuation of these shares. The feature of cost of capital whether calculated properly. the case is the rejection of the DCF method and the The notice under section 142(1) issued to the value arrived at under the method and substitution assessee-company points out the above and calls of net asset value in its stead. The facts are as follows: upon the assessee-company to explain why instead 1. The assessee-company allots 3,15,000 equity of DCF method a book value method as per Rule shares of face value of Rs.10 each at a premium of 11UA(2)(a) should not be taken. It is noted by the Rs.40 per share i.e. at a fair value of Rs.50 per share. ITAT that the assessee-company fails to respond to The valuation is carried out by a merchant banker the specific queries of the AO. It is also recorded adopting the DCF method. that the assessee-company has no explanations other 2. The Assessing Officer (AO), during the course than state that the assessee-company relied on the of assessment concludes that the merchant banker valuation given by the merchant banker.

18 It is also interesting to note that the Learned concerned with regard to valuation based on the Departmental Representative (Ld.DR) also submits figures furnished by an entity and issuing a report that the given the disclaimer by the merchant containing a disclaimer. The decision by the ITAT banker, the growth prospects of the company “have raises a wider question. Given that the decision is by been cooked up...” and that “... that in so far as DCF the ITAT, it is early days. But then one should not be method is concerned it is always possible for the surprised if this is the thread of logic that is going to company to decide the proposed value of the shares run through in the future. first and then travelling back to tailor the figures The further questions to answer are, (a) if with the reverse engineering process, to suite their projections given by the entity are to be verified, convenience.” the process of verification will have to concentrate The decision of the ITAT on what are called “forward looking statements” in The ITAT sums up its decision by stating that the parlance of accounting. This would amount to “For all these reasons, we are of the considered auditing assumptions and events that have not yet opinion that there has not been any possibility of occurred. (b) even if disclaimers are going to go verifying the correctness or otherwise of the data against entities as it did in the present case, can any supplied by the assessee to the merchant banker, in valuer afford to issue a valuation statement without the absence of which the correctness of the result of a disclaimer and (c) even assuming that one can, DCF method cannot be verified.....We, therefore, do this will make the process a cumbersome one that is not find any illegality or irregularity in the approach going to take an extra couple of months are so. of conclusions are by the authorities below. While One thing is for sure. If the judgement stands, confirming the same, we dismiss the appeal as devoid since it presumably will travel up in appeals, things of merits.” are going to be interesting. While the valuation Conclusion process is going to take longer, it will involve and will The views expressed by various authorities are mean greater participation by valuers i.e. merchant fairly damning in so far as current practices are bankers.

19 METRO TRAIN LOCAL TRAIN

A Tale of

Two Trains by R R Padmanabhan Chairman, Foreign Trade Sub Committee Andhra Chamber of Commerce

ast month, I had to attend a wedding reception same place. Now I was ready for the experiment. I Lat one of the hotels near the CMBT bus station asked my driver to go home with the vehicle. in Chennai. Since, it was in the evening, I dreaded I went in search of the metro station and to my the very idea of traversing the distance from my surprise I found that both the stations were situated office at Guindy to the venue by road. I used to hear in the same place like twins. All that separated both that some time it took even 2 hours to reach from of them were few steps. I had to take a left to reach Guindy to CMBT by car. Further, of late, thoughts metro; to reach local train, take few steps to right. of going green by reduction in carbon footprint What a difference! Both are two different worlds engage my mind. In fact, during my last trip to situated in the same place. Delhi for a personal hearing on behalf of my client, I boarded the metro and reached the Udyog bhawan Entry in to metro begins with a lovely small eatery right on time. This is notwithstanding the fact of joint run Adyar Ananda bhavan. After finishing off my knowledge of Hindi being barely minimal. with a samosa and a cup of south indian coffee (my anytime favorite) and thus filling to endure 1hour Armed with this experience in Delhi, I decided plus traversing. to give this a try to reach my destination in CMBT for the evening reception. Although, my office is My journey approximately took about less than in Guindy and from my complex I could see the 15 minutes (running time) but total time was more movement of metro trains, I did not know where the than 30 minutes considering my walking from ticket metro station in Guindy is. Then I found out that office and waiting for the train. I gave a rating of 9 both the metro and regular train are situated in the out of 10 for the metro on the following parameters:

20 Accessibility does not matter, convenience does. For many, both Cleanliness both inside the station and in train money and convenience matter. Before sitting to Personnel handling the commuters write this piece of article, I searched for opinions of Guidance others and I found this one to be apt: Fare Chennai Metro ride to Airport Time taken In order to avoid Chennai traffic on a rainy day Punctuality I boarded the metro from Ashok Nagar station. It Safety. typically runs at 5-6 minutes frequency and each station The only minus point (if at all one could say) was takes 2 minutes to reach. For me 7 stations to Airport the fare. That too when compared to local trains. took 20 minutes as last Airport station was a bit longer. Local trains are extremely cheap. They charge Rs.10 From station it takes 5 mins walk to either Domestic or for travel from Tambaram to Beach- a whopping International Airport terminal. Ride was convenient, distance of 28 kms, whereas I paid Rs.70 for a damn cheap, clean train and stations. Train tickets can distance of about 10.5 kms through Jawaharlal salai. be purchased with cards as well at each station. Most certainly, for a common man, this must be a https://www.tripadvisor.in/ShowUserReviews- burden if he is to take this train daily. g304556-d8524339-r510640444-Chennai_Metro_ But as we all know, there are two strata (or several Rail-Chennai_Madras_Chennai_District_Tamil_ strata?) existing in this society. For some, money Nadu.html#

21 Recent Judgments in VAT CST GST

Shri V.V. Sampathkumar

atural Justice: The petitioner has filed this No.4994 of 2012 Dated : 30.01.2018 NWrit Petition, challenging the assessment Interest: The interest liability is automatic on order passed by the respondent under the provisions delayed payment of admitted tax. Mahe Beach of the Tamil Nadu Value Added Tax Act, 2006, for trading company, Palakkal, Mahe, Pondicherry, the assessment year 2010-11 on the ground of total Vs The Commercial Tax Officer, Mahe, violation of principle of natural justice, as no notice Pondicherry. W.P. Nos.50305 and 50306 of 2006 was issued to the petitioner, prior to the impugned DATED: 08.01.2018 assessment order, which is a revision of assessment. On a reading of the impugned assessment order, it Mismatch : Assessment has been completed is seen that there is no averment about the revision exparte as the petitioner did not file their objections. notice issued by the respondent. Though such point The petitioner’s case is that soon after they came was specifically raised by the petitioner, and based on to know the impugned assessment order, they such submission, the Writ Petition was entertained approached the respondent and submitted a and order of stay was also granted, till date, the representation on 21.02.2012, clearly explaining respondent has not filed any counter affidavit, as to how the error has occurred and there can be denying the said averment. Thus, going by the no discrepancies between the Annexure - I and averment set out in the impugned assessment order, Annexure II of the seller. On this ground the writ it is held that the assessment, having been issued petition has been entertained and considering the without notice and opportunity to the petitioner, has factual issue involved in this case and the bunch of to be held to be in violation of principles of natural documents produced by the petitioner, to establish justice. M/s.Balu Spinning Mills (P) Ltd.,Vs The that one of the dealers namely, Ingram Micro India AC (CT), Bazaar Circle, Tirupur Writ Petition Limited, is an existing dealer and on account of wrong TIN number has been mentioned, an error

22 has occurred, this is a fit case, where the assessment Circle, Writ Petition Nos.984 to 993 of 2018 could be redone after considering all the materials Dated : 17.1.2018 available with the petitioner. Exelan Net Working Stay Orders: An interim order of stay subject Technologies Pvt. Ltd Vs. Commercial Tax to the condition that the petitioner should furnish Officer,Kilpauk Assessment Circle, Kilpauk, Writ bank guarantee to the satisfaction of the Assessing Petition No.5868 of 2012 DATED : 29.01.2018 Officer for the balance tax of and that the bank Interest: Well within this thirty days period of guarantee should be kept valid for a period of six receipt of assessment proceedings with demand months. The second respondent restricted the stay notice, the application for settlement had been filed order for a period of six months or till the disposal by the petitioner. Therefore, the question of levy of the case, whichever is earlier from the date of of interest does not arise. This interpretation will issue of the order. Aggrieved by such condition, the be in consonance with Section 24(3) of the Tamil petitioner filed W.P.Nos.7896 and 7897 of 2017 Nadu General Sales Tax Act, 1956 (in short the in respect of the appeals for two assessment years TNGST Act). Therefore, the impugned order of and this Court, disposed of the said writ petitions rejection of the application for settlement on the modifying that portion of the condition imposed by ground that the petitioner has not remitted 25% of the second respondent by directing the petitioner to the interest amount is incorrect, as no interest was execute a personal bond instead of bank guarantee. leviable in terms of Section 24(3) of the TNGST The second respondent though restricted the order Act. M/s.Audinarayana Trading Company, Vs. of interim stay for a period of six months, was unable Commercial Tax Officer, Kothawalchavadi to dispose of the appeal. Taking advantage of this, Assessment Circle, W.P.Nos.5972 & 5973 0f 2012 the first respondent has now issued the demand DATED : 30.01.2018 notice. This Court finds that the procedure adopted by respondents 1 and 2 is wholly arbitrary. If the Revision, intranet data: Notices were issued second respondent was confident of disposing of and the revision of assessment is based on the details culled out from the intranet website of the the appeal within a particular date, he should have Department, which was pursuant to an inspection done so and if he was of the opinion that he could conducted in the place of business of the petitioner dispose of the appeal within six months, he should by the officials of the Enforcement Wing. Though have passed final orders within such time. However, the petitioner received the revision notices, they he was unable to dispose of the appeal within such failed to file any reply. Therefore, the assessment time. In such circumstances, the second respondent has been completed on account of the fact that the should have granted an order of interim stay for petitioner has not submitted their objections to the a period of six months or till the disposal of the revision notices The Assessing Officer cannot be appeal, whichever is later. This Court made such faulted for having completed the assessment. The observations in its earlier orders. But, the Appellate petitioner contend that details were not furnished Authority has not paid any heed to such observations. and therefore, the petitioner could not explain to the At least, in future, the Appellate Authorities should Assessing Officer that there is no case for revision of adhere to the same while restricting the order of assessment. No request in this regard was made by stay and should state that it shall be for a period the petitioners. However, considering the above facts of six months or till the disposal of the appeal, this Court is inclined to grant one more opportunity whichever is later. M/s.Manali Petrochemicals to the petitioner to go before the Assessing Officer, Ltd., Vs 1.AC (CT), Alandur Assessment Circle, however, subject to a condition of payment of 15% Chennai-16. 2. ADC (CT) (East), Greams Road, of disputed tax M/s.R.K.Enterprises, Vs The Chennai-6.Writ Petition No.1104 of 2018 Dated : Commercial Tax Officer, Broadway Assessment 18.1.2018

23 Opportunity: After furnishing the copies of stock the objection and by on the single line stated that statement and without affording a personal hearing the objections are over ruled. This is a case, where the assessment has been completed and the court held the Assessing Officer has abdicated his quasi-judicial that the manner, in which, the assessment has been powers. Furthermore, the Assessing Officer cannot completed, is incorrect and will not stand to scrutiny be solely guided by the report of the Enforcement of law and set aside the impugned order. M/s.The Officer and at best, such report can be a starting point Western India Plywoods Ltd., Vs The Assistant for issuance of a revision notice and once the dealer Commissioner (CT),Choolai Assessment Circle, submits his objection, that the Assessing Officer has Chennai-8. Writ Petition No.1170 of 2018 Dated to independently consider the matter unbiased and : 19.1.2018 uninfluenced. In this regard, usual reference can Inspection: The Assessing Officer has verbatim be made to the judgment of the Hon’ble Division adopted proposal of the Enforcement Officer. Bench in the case of State of Tamil Nadu Vs. Further, it is submitted that the objection filed by A.N.S.Guptha and Sons reported in [2011] 38 VST the dealers were not considered and by a single line 45 (Mad). Tvl Gennext Auto World Vellore.Vs. it has been over ruled. On a perusal of the impugned The Commercial Tax Officer Vellore (North) Writ assessment orders, the Court held that the Assessing Petition Nos.13927 to 13930 of 2013 DATED : Officer has not been given any reasons for rejecting 02.02.2018

24 Trade Union To Pay Compensation For

Defaming The Management S. Ravindran Senior Advocate

1. During May 2006, State Bank of India f. Every person, natural or Ambedkar Trade Union pasted posters and juridical, is entitled to have issued pamphlets in and around city of his reputation. A person’s reputation is his Chennai and in the vicinity of State Bank property. The reputation is more valuable to of India Branches and Head Office making him than any other property. Reputation is the scandalous allegations against the Bank and its state of being held in high esteem and honor Chief General Manager to the effect that huge that the public has for a person. Reputation is amounts of money is looted by the officers in enjoyment of good opinion from others. The various branches of State Bank of India. law guarantees a dignified existence for every 2. The State Bank of India filed civil suit before person whether natural or juridical the City Civil Court, Chennai, claiming g. In this case, the very purpose of ordering monetary damages against the trade union for compensation on the defendants is only as defaming the reputation of the bank. punishment to deter the defendants and the 3. The trade union defended its action stating persons having like mind to desist them from that it was protecting the interest of the bank, doing scurrilous and defamatory act affecting that it was immune to civil litigation and its the image of an institution in the eyes of the action was protected under Article 19 (1) (a) of public. the Constitution of India. h. The defendant trade union should pay Rs.1 4. by judgement dated 19.07.2018 in O.S. No. lakh as damages to the bank for defaming the 6872 of 2014, the Learned Judge held as reputation of the bank. follows; i. The defendant trade union is also restrained a. The responsibility of an employee in an by way of permanent injunction from issuing organization is much higher than the common defamatory hand bills, notices, pamphlets, man. placards and pasting posters against the bank. b. The unauthentic rumors should not be j. The defendant trade union should pay cost of propagated by the employees. the litigation to the bank. c. The employees defaming the employer is like 5. No doubt that the above judgement of the City using one’s own hand to hit his own eyes. Civil Court is not a binding precedent like that of judgement of the High Court. However, it d. The defendants cannot hide behind the trade is a new dimension in law relating to claim for union banner to protect them from any action damages. by the management. 6. It is hoped that the above judgement would e. The freedom speech and expression enshrined serve as a warning bell to the belligerent trade under Article 19 (1) (a) of the Constitution union leadership and restrain them from of India is broadly misunderstood as anybody making unfounded allegations against the can speak anything against anyone without any managements and its business activities. qualification or reservation.

25 Strategy, Execution & Delivery – SED Model

Article by M.K. Anand Chairman - IT & Telecom Sub Committee & Co-Chairman Skill Development Sub Committee, Andhra Chamber of Commerce [email protected] • +91 94440-25283

Disclaimer: Get ready to swallow bitter pills for the benefit of entrepreneurs.

As a Mentor and Coach for decades serving strategies. They are busy in doing trivial jobs such many businesses and entrepreneurs I consider it’s my as signing the vouchers, visiting banks, attending responsibility to present the real business scenario several training workshop beyond the need, spending in order to protect the present interests and the prime time in various activities other than business Entrepreneurs to build their business for generations growth, essentially, directly dealing with every aspect for the future. That’s the tag line of my co-authored at the office operations, handling low ball activities Book titled 36 Golden Rules. It reveals many secrets in the business etc. They use their higher intelligence for entrepreneurs. Let us look at the some habits I and prime time for low level tasks and feel that they observed in business people. are quite busy at their peak of every single day. Many Entrepreneurs generally are pre-occupied When they are busy all the time with their day to with the day to day routines of operations in the day operations in the office operations, what is the business. It would have been good if they are difference between an entrepreneur and an admin preoccupied with business development and growth executive /manager?

26 As an Entrepreneur, What are they expected to Strategy: - They must work on this all the do? To put it simple, what is their One Hour Time time keeping VUCA World in Mind and it needs worth Vs ROI generated from the task that they periodical reviews and tweaking as necessary so that perform day in and day out? the teams(1 or 1000 does not matter) below them The single most challenge for mentors and coaches will be able to put their best effort for the remaining is to educate Entrepreneurs continuously that you two major areas of business. are not an employee of your business but you are Execution:- This is where most entrepreneurs fail the Creator of your own business and a strategist. to understand, doing is different from monitoring Many feel that without them nothing can happen execution. Some entrepreneurs jump to the ground in the office, nothing will work as perfect as they do, and some don’t even bother to see what is happening nobody can match their workmanship and they are on the ground. Here they have to strike a balance proud of it. They start doing the same repetitive jobs to monitor the market movements, ground reality again and again and come to a conclusion that this by constantly monitoring the execution team’s work. is how this business can function. The irony is that Technology and Dashboard tools are readily available they believe it strongly. They are right in one way as to support them. Little hands on is the need for Henry Ford said once “If you think you can, you them to handle this pivotal areas of business. When can If you can’t, you Can’t.” It’s all about your belief the boss looks at numbers or operations on a regular system. basis, things will happen as it should be. Certain In the process, once upon a time, the very intelligent, things you cannot outsource rather you should not very smart, forward looking, technopreneur outsource. completely loses their zeal, enthusiasm, sharpness Delivery:– This is something to be readily and get submerged with day to day operations and available 24/7 on the fingertip with any entrepreneur. beaten up by market, competition and degenerate They should know the Heart beat of their business their business day by day. One day they do come to in every single day, week, month and quarter. This a conclusion to either close the shop or sell it and needs hands-on approach and this is where mentors get retired from the mess that they have created and and coaches have huge role to handholding them blame the market, competition, society, fate of their and keep saying “Stay the Course” “Keep at it” until life. they reach their desired destinations. Having described the challenge before the Just flip back and review where we started this entrepreneurs, I must also offer the possible solution article and where we have ended now is the testimony which is always my role as mentor to entrepreneurs. of the Scale up process. If the SED Model is clearly The most important clarity an entrepreneur must understood and practiced, within a month the have is to know the difference between, entrepreneur can SEE THE CHANGE. • Strategy The conclusion is, Focus on Vital Sciences of • Execution the business and Outsource or eliminate the trivial • Delivery things from their day to day “To Do List” and they cannot but succeed for generations. What I call SED Model. SED is fundamentally to be imbibed by entrepreneurs to be able to run their business most successfully and scientifically.

27 PRESIDENT OF INDIA

By Advocate Pandian

he Chief Executive of Union of India is The such seat shall deemed to have vacated on the date he TPresident of India. He shall exercise his powers enters upon his office as President of India. He shall either directly or through officers subordinate to not hold any other office of profit. him in accordance with The Constitution of India. The President of India shall take an oath as He shall be the supreme commander of the defence mentioned in Article 60 of The Constitution of forces of India. India, before the Chief Judge of India or in his He is elected by members of an Electoral College absence the senior most Judge of Supreme Court of consisting of elected members of both the houses of India available. He can take the oath either in the Parliament and elected members of the legislative name of God or if he does not believe in God he assemblies of the states. He shall hold office for a can say that he solemnly affirm that he will faithfully term of five years from the date he enters upon his execute the office of the President of India for the office. He shall continue in his office even after five discharge of the functions of the President of India years till his successor enters up on his office. and will to the best of his ability preserve, protect, For a person eligible to be appointed as The and defend the Constitution and the law and that he President of India, he must be a citizen of India, will devote himself to the service and well being of and have completed 35 years of age and he must not the People of India. be a member of either house of Parliament or the The President of India can resign from his post Legislature of any state. If a person who is elected as by writing under his hand addressed to the Vice- The President of India is a member of either house of President. He can be removed from his office only Parliament or either house of Legislative Assembly, by impeachment for violation of The Constitution

28 of India as prescribed in Article 61. The proposal can lady lawyer in Delhi High Court was recommended originate from either House after giving fourteen to be appointed as a Judge of Delhi High Court, days’ notice in writing signed by not less than one- the then President of India Mr. R. Venkatraman, fourth of the total number of such House and has returned the file asking for clarification as to why she given their intention to move the resolution. Such is recommended when there are many lady lawyers resolution has been passed by a majority of not who have good practice. Mr. R. Venkatraman less than two thirds of the total membership of the personally explained this to me. House. When a charge is preferred by either house The President of India can nominate twelve of Parliament, the other house shall investigate the members to the Council of States. Such persons charge or cause the charge to be investigated and shall have special knowledge or practical experience President shall have the right to appear and to be in literature, science, art, and social work. represented at such investigation. Election for the President’s post shall be conducted before the expiration of the term of the present President. In case of death, resignation, and removal or otherwise of the President the election to elect the new President shall be conducted as soon as possible and not later than six months of such occurrence. The Vice –President of India shall act as the President of India till the newly elected President of India enters up on his office. A person who holds the office of the President or who was earlier the President is eligible for re- election as the President of India subject to other conditions stated in the constitution. In case of the Supreme Court of India declares the election of a person as President of India, as void, The following were the Presidents of India. such declaration shall not affect the decisions taken Dr. Rajendra Prasad : 1950-1962 by him while he was the President. Dr. S. Radha Krishnan : 1962-1967 The President can grant pardons, reprieves or Dr. Zahir Hussain : 1967-1969 remissions of punishment or to suspend, remit Dr. V.V. Giri : 1969-1974 or commute the sentence of any person convicted Dr. Fakhrudin Ali Mohamed : 1974-1977 either by Court Martial or by any court of law. Dr. N. Sanjiva Reddy : 1977-1982 There shall be a council of Ministers with the Dr. Giani Zail Singh : 1982-1987 Prime Minister at the head to aid and advice the Dr. R. Venkatraman : 1987-1992 President, who shall in the exercise of his functions, act in accordance with such advice. The President can Dr. Shankar Dayal Sharma : 1992-1997 require the Council of Ministers to reconsider such Dr. K.R. Narayanan : 1997-2002 advice. And the President shall act in accordance with Dr. A.P.J. Abdul Kalam : 2002-2007 such advice after re-consideration of such advice. Dr. Prathiba Patil : 2007-2012 Normally people believe that the President of India Dr. Pranab Mukherjee : 2012-2017 is a rubber stamp. But the truth is he is not. When a Dr. Ram Nath Govind : 2017 onwards

29 The Active Listening Secrets

S. Prakash CEO of See Change Consulting 8He can be reached at [email protected] / +919840096454 “I like to listen. I have 1. If you are not really sure you understand what the other person is saying, learned a great deal from repeat what they said back to them, in a slightly different way: “So, what listening carefully. Most you’re saying is....” You’ll soon know whether or not you understood. people never listen.” - 2. Many of us have the habit of planning in our head what we’ll say next instead Ernest Hemingway. of listening to what the person is saying. Use eye contact as often as possible. If everyone would It’s a good way to avoid drifting away in thought. just develop this one communication skill, most 3. Keep an open mind. Be willing to compromise or be flexible with any alternate communication problems solutions the person might be offering. would disappear. If you 4. Make sure you completely understand what the person is conveying before are honest with yourself, you respond. Don’t just blurt out the first thing that pops into your mind. the last time you got into Use self-control. a misunderstanding with 5. Responding is a way of using the facts and your feelings to add to the someone, it was because conversation. It is a communication skill that can help you avoid possible you weren’t really listening conflicts. It’s better to respond to what someone is saying than to react. to what they said. 6. Since we understand that people want to be heard, you can show them that Active listening is a you are paying attention, by adding things like: “I’m interested in what you communication skill that is just said. Can you tell me about what lead to your believing that?” easy to learn and valuable in all areas of life. Remember, 7. Remember that what someone is saying and what we hear can sometimes be you can’t learn something remarkably different! Our personal beliefs, judgements and assumptions can new while you are talking sometimes distort what the other person really wants to say. Restate what you - only when you listen can think you just heard to clarify. you learn. Here are some 8. Make notes if you are listening on the phone. Not having the eye contact and pointers to becoming an maybe other distractions may affect how well you listen. Keeping notes will active listener: help you to ask any questions you might need to.

Listening is a valuable communication skill. All you have to do is remember a time when you felt that a person wasn’t really listening to you, to understand the importance of listening. If you want to improve your professional and social standing, learn to communicate efficiently and in a positive manner. You will notice a dramatic difference in the way other people perceive you if you demonstrate self-confidence and project a friendly, informed image.

30 Notes and News CONSUMER PRICE INDEX NUMBERS FOR INDUSTRIAL WORKERS – (BASE 2001=100)

June June Sl.No. Centre Sl.No. Centre 2018 2018 ALL INDIA 291 23. Jamshedpur 338 ANDHRA PRADESH: 24. Jharia 325 1. Guntur 280 25. Kodarma 338 2. Vijayawada 278 26. Ranchi Hatia 337 3. Visakhapatnam 284 KARANATAKA: ASSAM: 27. Bengluru 288 4. Doom Doom Tinsukia 264 28. Belgaum 298 5. Guwahati 251 29. Hubli-Dharwar 312 6. Labac-Silchar 261 30. Mercara 302 7. Mariani Jorhat 249 31. Mysore 302 8.. Rangapara Tejpur 246 KERALA: BIHAR: 32 Ernakulam 308 9. Munger Jamalpur 306 33. Mundakayam 309 10. Bhilai 318 34. Quilon 342 GOA: MADHYAPRADESH: 11. Goa 319 35 Bhopal 293 GUJARAT: 36. Chhindwara 290 12. Ahmedabad 269 37. Indore 266 13. Bhavnagar 272 38. Jabalpur 291 14. Rajkot 280 MAHARASHTRA: 15. Surat 264 39. Mumbai 293 16. Vadodra 269 40. Nagpur 329 HARAYANA: 41. Nasik 307 17. Faridabad 264 42. Pune 300 18. Yamunanagar 277 43. Sholapur 301 HIMACHAL PRADESH: ORISSA: 19. Himachal Pradesh 258 44. Angul Talcher 303 JAMMU & KASHMIR: 45. Rourkela 307 20. Srinagar 269 PUNJAB: JARKHAND 46. Amritsar 298 21. Bokaro 288 47. Jalandhar 291 22. Giridih 315 48. Ludhiana 281

31 June June Sl.No. Centre Sl.No. Centre 2018 2018 RAJASTHAN: UTTAR PADESH: 49. Ajmer 268 62. Agra 320 63. Ghaziabad 292 50. Bhilwara 278 64. Kanpur 303 51. Jaipur 277 65. Lucknow 294 TAMILNADU: 66. Varanasi 293 52. Chennai 268 WEST BENGAL: 53. Coimbatore 279 67. Asansol 314 54. Coonoor 298 68. Darjeeling 263 55. Madurai 281 69. Durgapur 316 56. Salem 281 70. Haldia 321 57. Tiruchirapally 289 71. Howrah 280 72 Jalpaiguri 284 TEL 73. Kolkata 276 58 Godavarikhani 298 74. Raniganj 265 59 Hyderabad 250 75. Siliguri 264 60. Warangal 300 76. CHANDIGARH 293 TRIPURA: 77. DELHI 265 61. Tripura 266 78 PUDUCHERRY 39

Source: Labour Bureau, Shimla

Edited, published and printed by Shri P. Nandagopal, Secretary on behalf of Andhra Chamber of Commerce at “Velagapudi Ramakrishna Building”, 23, Third Cross Street, West C.I.T. Nagar, Nandanam, P.B. No.3368, Chennai-600 035. (Phones: 24315277 / 24315278 / 24315279) Email ID: [email protected] / [email protected] / [email protected]

SECUNDERABAD OFFICE: “T.G. Venkatesh Bhavan”, 602 & 603, Chenoy Trade Centre, 116, Park Lane, VI Floor, P.B. No. 1716, Secunderabad-500 003, Telangana State, Phone: 040-27840844, Fax: 040-27840767; Email : andhrachamber@ gmail.com : Shri O. SRINIVAS, Joint Secretary.

VISAKHAPATNAM OFFICE: Door No. 43-19-30, Venkataraju Nagar, Dondaparthy, Near T.S.N. Colony, Visakhapatnam-530 016, Andhra Pradesh, Phone: 0891-2792220, Fax: 0891-2792221, Email : andhrachamberofcommercevizag@ gmail.com : SHRI V. THRINADHA RAO, Asst. Secretary.

VIJAYAWADA OFFICE: Siddhartha Hotel Management College Premises, Pinnameneni Poly Clinic Road, Technical Nagar, Vijayawada – 520 010 (A.P). Phone: 0866-2472500, Email: [email protected] : SHRI N. RAJA RAO, Joint Secretary.

32 Picture Gallery

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