FKCCI Mysore Commerce Journal | October | 2018

Volume XXXIX | October 2018 | Issue 10 | Rs 20

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A PROUD MOMENT FOR VISHWA MECHHIDA KANNADIGA

FKCCI presented the prestigious Sir M Visvesvaraya Memorial Award 2018 for the first time to a NRI and Non-Resident Kannadiga, Dr. B.R. Shetty, global business icon and philanthropist on the occasion of its Founder's Day Celebrations on Sep 15, chaired by Hon'ble Sri D.V. Sadananda Gowda, Union Minister for

INSIDE:

Statistics & Programme Implementation and Dr. Subramanian Swamy, MP

Smart Solutions for Bengaluru’s Traffic Problems Cover Story: Founder’s Day Celebrations at FKCCI

HAPPY DASARA GREETINGS FROM FKCCI

In the UAE

07 Events

8-12 GST Update

13-15 Cover Story: Founder's Day Celebrations

16-18

Issue Highlights:

20-21 Photo Feature

50-51 In the Limelight

53-54

Traffic Blues in Bengalru

27 Elevate Initiative for Start-ups

42-43 Success Story

4 | OCTOBER 2018

Dear Members,

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he Founder's Day Celebrations at FKCCI this year will remain etched in our minds forever.

That moment in particular, when Dr. B.R. Shetty, the recipient of Sir M Visvesvaraya Memorial Award 2018 and a living legend who has touched the lives of millions of Indians and others across 17 countries and provided employment to more than 60,000 people overall, choked and overcome with emotion, acknowledged that the Sir MV Award was closer to his heart than the other national and international awards he has received in the past, was for all of us, unforgettable and truly inspiring. As was too, the erudite address of Dr. Subramanian Swamy, MP and Sri D.V. Sadananda Gowda, Hon'ble Union Minister for Statistics and Programme Implementation.

Incidentally, the Karasamadhana Scheme announced by the Kumaraswamy Government that grants waiver of 100% of arrears of penalty and interest payable under the CST Act, 1956 in relation to assessment and re-assessments completed on or before June 30, 2018 provided full payment of arrears of tax is made on or before Oct 30, 2018 will cease to be operational by the end of this month. I therefore request our Members to make full use of this Scheme while it is in force without any delay.

The State Government's innovative Compete with China Scheme which is to be implemented in nine districts and envisions the manufacture of district-wise dedicated niche products at the village level, assembling them at the taluk level and marketing them at the district level is perfectly in sync with the FKCCI's vision of taking industrial growth to the districts and taluks, and not just limit them to Bengaluru. To ensure it takes off at the ground level, we would like to suggest that the vision group formed for each identified district use the services of the corresponding District Chambers.

Friends, on behalf of FKCCI I would like to wish all of you and your family members, a very happy and peaceful Dasara,

Warm regards, SUDHAKAR S. SHETTY

05 | OCTOBER 2018

IN THE UAE

FKCCI Delegation acts as Brand Ambassador for Karnataka, woos NRIs/NRKs for Investments

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fter taking part in the AKKA Sammelana in Dallas, USA, the FKCCI Delegation left on a business visit to the UAE, viz. Abu Dhabi, Dubai and Sharjah, and the experience, said Sri Sudhakar Shetty, of the hosts' reception and hospitality, was “exhilarating and heart warming”.

The FKCCI delegation used that opportunity to woo prospective investors to invest in Karnataka by explaining to them that the FKCCI was setting up a NRI Forum to exclusively offer them any kind of assistance and handholding services, so that they need not worry about bureaucratic delays or run from pillar to post for any clearances from government departments. It was explained to them that being an initiative of the FKCCI by veterans of business and trade themselves, the NRI Forum would be very much unlike a government offering and so they could count on it.

“The meeting with Dr. B.R. Shetty, global business icon and philanthropist, a NRI from Karnataka, at Abu Dhabi was a personal landmark for me,” Sri Sudhakar Shetty, a self-confessed admirer, said. “We were simply overwhelmed by his gracious way of greeting us at the entrance. The purpose of meeting him was to invite him for our Founder's Day Celebrations and to present him the Sir M Visvesvaraya Memorial Award. At first, he was not enthusiastic as he said he was only interested in serving the people and not in getting any recognition, which in any case, he has won at a national and international level. Eventually, it took a lot of convincing and persuasion from our side for him to relent and accept our invitation.”

The President also informed the gathering about the ambitious ASEAN Summit planned by FKCCI to be held early next year which would bring together all Chambers of Commerce of ASEAN countries in addition to Special Invitee countries, under a single roof, so that they could exchange ideas on international trade and Best Practices of Business from across the world.

The delegation spent almost two hours exchanging views on how to develop Karnataka and the different ways in which one could contribute to its growth.

Incidentally, Dr. B.R. Shetty is taking up the responsibility of transforming the Jog Falls into an all-season spectacle and as a global tourist hub, as a CSR initiative.

A Dinner Meet ensued at Abu Dhabi as well as with Dubai Friends Group at Dubai the next day which was essentially a get-together with around 35 NRIs and people from Karnataka.

“Our following meeting with Mr. Abdulla Sultan Al Owais, Chairman, Sharjah Chamber of Commerce & Industry (SCCI), at Sharjah and meeting with the SCCI was also memorable,” Sri Sudhakar Shetty said. “We were also happy that the SCCI Chairman gave his preliminary acceptance for taking part in our proposed ASEAN Summit. We also expressed our keen interest in strengthening our collaboration between the Sharjah Chamber of Commerce and Industry and the FKCCI.” The FKCCI's Delegation led by President, Sudhakar S. Shetty comprised Sriyuths S. Sampathraman, Past President, V.G. Kiran Kumar, Chairman, CSR Committee, and Trivikram Joshi, Chairman, Political Central Government Coordination Committee.

07 | OCTOBER 2018

“Karasamadhana Scheme needs wide publicity�

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onsidering the importance of the Karasamadhana Scheme for businesses, the Commercial Taxes Department should widely publicise the Scheme through TV advertisements, awareness programmes and also open a Helpdesk and a Helpline at all Commercial Taxes departments throughout the State as well as at the FKCCI office, Sri C.R. Janardhana, Senior Vice-President and Sri Perikal M. Sundar, VicePresident, FKCCI said at the Meeting on CST Karasamadhana Scheme held on Sep 4 chaired by Sri M.S. Srikar, IAS, Commissioner of Commercial Taxes Department at his office.

Stating that the Government should have extended the Karasamadhana Scheme to all the arrears

under Commercial Taxes as suggested by the Federation, Sri B.T. Manohar, Chairman, State GST Committee added that the Department field officers should expedite the applications in case of any discrepancies found in complying with the Scheme.

B.T. Manohar Chairman State GST Committee

Sri P.H. Rajpurohit, Chairman, Local Association Committee, Sri Vimal Khanter, Chairman, Trade Committee, Members and Affiliate Associations of FKCCI, industry bodies KASSIA, PIA took part in the interaction.

Highlights of Karasamadhana Scheme 2018 Following are the key takeaways from the Karasamadhana Scheme which has been introduced vide order No. FD 38 CSL 2018 dated August 04, 2018:

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The assessing authority shall scrutinize the application and calculate the actual arrears of tax, interest and penalty payable up to the date of filing the application.

The Scheme grants waiver of 100% of arrears of penalty and interest payable under the CST Act, 1956 in relation to assessment and reassessments completed on or before 30 June 2018 provided full payment of arrears of tax is made on or before 30 October 2018.

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Any rectification of order made after 20 June 2018 shall not be eligible to avail the benefits of the scheme.

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In case no discrepancy is noticed the assessing authority shall pass the order in 15 days from date of receipt of application and served to the dealer in next 10 days .

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E-Application for waiver of arrears of penalty and interest shall be filed in Annexure I for each of the year separately.

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A declaration in support of withdrawal of appeal or other application shall be filed in Annexure II for each of the year separately.

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The Scheme is applicable only for orders passed under the CST Act and not for cases pending under the Karnataka VAT Act. Further any penalty levied u/s 10-A of CST Act shall not be waived under this scheme.

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The dealer shall withdraw the appeal filed before the Appellate Authority or Court or any application filed against the order or proceedings relating to arrears of tax, interest and penalty for which the disposal is still pending.

Post withdrawal of the appeal or application as the case may be, any amount of penalty and interest paid at the time of filing an appeal or application shall be eligible for adjustment towards arrears of tax outstanding for the assessment year for which benefit is claimed.

08 | OCTOBER 2018

Emergency Passport issued within 2-3 hours; Also, no police visit for passport verification: RPO, B'lore implemented [this system], it will be premature to say if it will reduce the time taken for verification,” Sri Kuthati said.

Videsh Bhavan in Bengaluru The Bengaluru RPO in Koramangala could well become the epicentre for all external affairs matters for residents of Karnataka. Under the Ministry of External Affairs' outreach programme for the States, a Videsh Bhavan is expected to be set up at the RPO.

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he Regional Passport Office in Bengaluru can issue Passports within two to three hours in case of an emergency, and it has been done many times on such occasions, said Regional Passport Officer, Sri Bharath Kumar Kuthati, IFS, responding to a query, at an interaction with FKCCI on Sep 19.

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xplaining the procedure, Sri Kuthati said that the applicant needed to accept whatever appointment is provided online and visit the passport office on any day along with required documents.

“You just need to approach the reception and explain that it is an emergency. A Deputy Passport Officer will be made available immediately to help,” he added.

Another major change introduced is that one need not come to one's hometown for getting a passport.

“A Bengalurean can apply for a passport even at the Delhi passport office. The passport will have the Delhi RPO signature but will be issued to the Bengaluru address.”

A mini-Secretariat of the Ministry of External Affairs is being created in all State capitals, he said. “The RPO in Koramangala will house it here.” Sri Kuthati said the verification process has been simplified enormously of late.

No cops' visit to home “There is no need for the police to visit homes or ask public to come to the station since July 1. Instead of nine questions, the police had to ask an individual earlier, only three need to be asked now. They only need to cross check if the individual has any criminal record and if he or she is an Indian citizen,” he stressed.

However it is the prerogative of the police to decide whether they wanted to visit a given address Police verification has often been a subject of dispute. Some applicants have cited the time taken, which ends up delaying the process of getting the passport, while others have alleged they are made to pay an additional 'fee'.

However, the impact of the change on the time taken for police verification is likely to be known only later. “As we have just

In it will be the Indian Council for Cultural Relations, as well as the Protector of Emigrants and a Branch Secretariat — both of which are not in Bengaluru at present.

Wait time for appointments Those applying for passports have been experiencing unusually long waits for appointments. By the RPO's own admission, the waiting time for an appointment for normal applications is now 20 to 25 days, and 10 days for Tatkaal applications in the two Passport Seva Kendras in Bengaluru.

“We have had to redeploy people from here to the Post Office PSKs, which is why the waiting time has gone up. The volume of passports remains the same - 3,200 to 3,500,” said Sri Kuthati.

PSKs in all 28 constituencies The Regional Passport Officer said there was a proposal to establish Passport Seva Kendras in all MP constituencies (28 in Karnataka). At present, there are 17 PSKs - 12 of them Post Office PSKs. “We will be establishing 11 more in the next few months,” said Sri Kuthati.

'Simplify the process' Earlier, the FKCCI sought simplification of certain processes and

09 | OCTOBER 2018

easy access to officers, and highlighted the following issues:

INDIAN DEPORTED DUE TO ERROR IN PASSPORT PAGES t the FKCCI interaction was Sri Praveen Chowhan, a Member of the Federation who is into mobile phone distribution in Bengaluru, who narrated his harrowing tale owing to an error in the printing process of his passport.

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came 14, 15, 16, and then 9, 10, 11. They said mismatch in page number was considered as a damaged document as per Russian law. After two hours, one officer came up and said I cannot enter the country, and that I will be deported,” he said.

He flew to Moscow on August 7 using his passport, issued in 2011. He was stopped at the Moscow immigration's passport control.

The Indian Embassy in Russia was of little help, Sri Chowhan added. He was deported and landed in Bengaluru on August 8. After knocking on the doors of the MEA, and RPO, Bengaluru and the police, he was promised to be finally be heard by the RPO officials subsequently. “What surprised me was how little the Embassy could help. I had travelled to Russia earlier with my old passport,” he added.

“They asked me to wait. After four hours, I asked them what the problem was. They started taking my pictures and then told me that there was a problem in my passport. The page numbers were jumbled up. So after 8,

FKCCI aims to facilitate 100 Women Entrepreneurs The FKCCI will work to facilitate at least 100 women entrepreneurs to become beneficiaries of MUDRA, CGTMSE and other Schemes of Banks and Government, Sri Sudhakar Shetty, President, said at a one-of-its-kind 'Finovation' Programme for Women Entrepreneurs & Start-Ups for obtaining Finance from Banks held on Sep 18 that brought together woman entrepreneurs, Banks and Government agencies to address the bottlenecks and hurdles faced in obtaining loans under various government schemes.

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ll those who had difficulties in obtaining the loans under various schemes should approach the Women Entrepreneur Committee of FKCCI and also actively participate in various programmes organized by FKCCI, Sri Sudhakar Shetty added.

The participants included Ms. Rupa Rani, Chairperson, Skill Development, Ms. Lakshmi Kamath, Chairperson, Women Entrepreneurs

10 | OCTOBER 2018

Committee, Sri Ravikumar, GM, NSIC, Ms. Mamta, Sr. Manager, KSFC, Sri Gopalkrishna, Dy. Director MSME and Sri Rama Krishna, Chief Manager, Central Bank of India.

Organized by the Skill Development Committee in association with Women Entrepreneur and Finance Committees of FKCCI, the programme attended by 54 women entrepreneurs and Start-ups ended with vote of thanks by Ms. Rupa Rani, Chairperson, Skill Development Committee, FKCCI.

Helpdesk made available for sorting out Export Refunds at Program for Authorized Economic Operators (AEO)

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Helpdesk was made available for the benefit of Trade & Industry to sort out any problems relating to Export Refund (IGST Refund), in addition to on the spot receipt of Authorized Economic Operators (AEO) applications made available, at the Outreach Program for Authorized Economic Operators (AEO) and Facilitation of Export Refunds conducted by the Bangalore Customs Zone in association with FKCCI at Sir MV Auditorium on Sep 20.

FKCCI had requested the Customs Department to start a Helpdesk at the Federation for the benefit of Exporters. Sri Pranab Kumar Das, IRS, Member Customs (CBIC) New Delhi, in his keynote address, juxtaposed the role of culture and economy in the development of a country. Sri A.K. Jyotishi IRS, Chief Commissioner of Customs, Bangalore Customs Zone, elaborated on the aspects of AEO such as T1, T2 & T3 and their specific importance to exporters. Sri Parag C. Borker IRS, Commissioner of Customs interacted with the participants. Sri Manudev Jain, Asst. Commissioner, AEO, Directorate of International Customs, New Delhi made a presentation on AEO. Sri Sudhakar Shetty President, FKCCI touched upon the importance of World Customs Organization (WCO), security and facilitation of International Trade, concerns of Exporters regarding AEO and Export Refunds, and the Federation's plans to organize a ASEAN Summit and establishing a NRI Forum by Jan 2019.

Round Table with Thailand's Board of Investment (BOI) The Board of Investment (BOI), Government of Thailand held a Round Table with a delegation led by FKCCI on Sep 7 at Le Meridien, Bengaluru regarding opportunities for investments in Thailand.

Mr. Nanthapol Sudbanthad, Director and Consul, Investment, Thailand Board of Investment, Royal Thai Consulate-General interacted with Sriyuths C.R. Janardhana, Sr. Vice-President, K. Ravi, Immediate Past President and N. Satish, Chairman, Industry Committee, FKCCI, and Sri Mohandas Ukkandath, President CLIK, and Ms. T.M. Uma, President AWAKE. FKCCI also sought the support of Thailand for the successful conduct of its ASEAN Summit to be held during Jan-Feb 2019 by becoming an Event Partner for this prestigious global event.

‘MSMEs should go digital to gain competitive edge' The MSMEs in India need to improve their competitiveness by maximizing use of digitization with the help of Information and Communication Technologies (ICT), said Sri Sudhakar Shetty, President, FKCCI at the Conference on 'Digital Transformation Handholding MSMEs' organized by FICCI on Sep 27 at NASSCOM Centre of Excellence, Diamond District, Domlur, Bengaluru.

Going digital has become a key enabler for competitiveness, improved product and service delivery, lowered process costs and has supported Management Information systems (MIS), he said and noted that in many cases, digitization has been at the heart of the business model, offering new ways of doing business.

Summing up, the President said to increase digitization among MSMEs in particular, awareness must be spread about its use and advantages by industry bodies conducting programmes, workshops and conferences so that the message reaches the ground level and also by more and more members joining industry bodies to spread awareness about such enablers like digitization.

11 | OCTOBER 2018

'Provide more Incentives to NGOs/NPOs': FKCCI Non-Governmental Organizations (NGO) and Non-Profit Organizations (NPO) taking up charitable activities for social welfare should be given appropriate incentives and specifically tax incentives, since they play a significant role in promoting economic development and social welfare objectives of the Government, Sri Sudhakar Shetty, President, FKCCI, said, while noting that the Indian Government was indeed doing so, at a Seminar on Challenges and Risks, (Recent) Income Tax assessment of Charitable or Religious Trusts or Institutions, NGOs, NPOs held at FKCCI on Sep 17.

The main speaker, CA Dr. N Suresh, Chartered Accountant first presented a brief introduction on the concept of NGOs, NPOs, historical significance of charity, meaning and concept of charity, and then explained the new amendments and changes in the tax system, viz. the changes in modification of Objects, Inter Charity Donation, Income-Tax, Amendments made by Finance Act, 2018, applicability of Sec 40 (a)(ia) – TDS deductible, applicability of Sec 40A (3A) – Payment in cash, and such other aspects.

After lively interaction with a huge gathering, the seminar ended with vote of thanks by Sri Prabhudev Aradhya, Co-Chairman, Central Taxes, Capital law & GST Committee, FKCCI.

Latest Developments in International Business A Banker's Perspective Do Banks follow or lead international business? There is no easy answer to this question, as Banks and business firms are two parts of the world network, said Sri Sudhakar Shetty, President, FKCCI at the Interactive session held at FKCCI, on 'Latest Developments in International Business - A Banker's perspective' on Sep 7. He however conceded that it is possible that where banks are aggressive in building world networks, and Industries focus on single projects, banks lead and industry follows. But under the opposite conditions, the roles will reverse. There is no way to determine which of the two processes is dominant, he opined and added that the FKCCI will soon be starting a NRI Forum for handholding prospective investors in Karnataka.

Addressing the participants, CA Sri S. Prabhudev Aradhya, Chairman, Banking, Finance & Capital Markets Committee, FKCCI observed that the domestic banking and external financial relations of the developed and developing countries are going through rapid and significant changes partly due to the breakdown of the conventional channels of international financial flows and partly due to the onslaught of the winds of innovation sweeping the global banking and financial scene.

The Guest Speaker, Sri V. Somasekhar focused on the latest developments in International Trade including liberalization of Exports & Imports, Inbound IFDI) and Outbound (ODI) opportunities for businesses for raising of ECBs/FCCBs, Hedging strategies, etc.

Vijaya Karnataka & ET Wealth Investment Workshop The Economic Times Wealth Investment Workshop supported by Vijaya Karnataka was held at Sir MV Auditorium, FKCCI on Sep 28.

Mr. Syed Fazal Bari (Business strategy, Economic Times Digital), set the agenda with his welcome address, which was followed by a series of interactive sessions on various topics such as Wealth Creation through Mutual Funds (presented by Sri A. Balasubramanian); a presentation from MCX; discussion on Markets and Rebalancing (by Sri P. Srinivasan); P2P (peer to peer) lending (by Sri Vinay Mathews); presentation from JM Financial (by Sri Vinay Barla); Efficient Tax Planning (by Sri Amarpal Chaddha); and an address by Sri Sudhakar Shetty, President, FKCCI on various investment products available to an ordinary investor.

The President briefly enumerated the 10 investment avenues that he said Indians look at while planning their financial goals, viz. Direct Equity; Equity Mutual Funds; Debt Funds; National Pension System (NPS); Public Provident Fund (PPF); Bank fixed deposit (FD); Senior Citizens' Saving Scheme (SCSS); RBI Taxable Bonds; Real Estate and Gold.

12 | OCTOBER 2018

GST UPDATE

FKCCI meets GST Council Chairman, seeks two separate due dates for filing Returns H

Introduce two separate due dates for filing GST returns, in particular, GSTR3B by taxpayers whose aggregate turnover exceeds Rs.5 crore to be on or before 20th of succeeding month as prevailing now and for taxpayers whose aggregate turnover is below Rs.5 cr to be due on the 25th of the succeeding month. The underlying idea is to ease the pressure on GSTN portal.

H The due date for reconciling returns filed for

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he FKCCI appreciates the GST Council's decision to allow small dealers, viz. GST registrants with turnover below Rs 5 crore to submit Quarterly return, especially since such small dealers are said to constitute almost 93% of all GST registrants. Stating this in the Memorandum presented to Sri Sushil Kumar Modi, Hon'ble Dy. Chief Minister & Finance Minister, Bihar and Chairman, Group of Ministers GSTN at a meeting held at Windsor Manor on Sep 22, Team FKCCI led by President, Sri Sudhakar Shetty, also made a few suggestions a gist of which is given below: H

Speedily resolve the technical glitches encountered in GSTN portal causing hardship to dealers while submitting returns especially during the last few days preceding the due date.

financial year 2017-18 is in Sep 2018 and as this is the first year of GST it is requested to extend the time till Dec 31, 2018 for the same. In other words, the reconciliation statement and the audit report for 2017-18 should be allowed to be filed on or before Dec 31, 2018.

On the request for allowing taxpayers with aggregate turnover below Rs 5 crore to file GST returns by 25th Guiding principles KSEC 2050 of the succeeding month, Sriof Sushil Kumar Modi, Chairman, GST Council acknowledged that he had received several such requests and promised to take it up with the Finance Ministry, while lauding the FKCCI for being the only Chamber to have come with such a big delegation and an impressive presentation.

The FKCCI led by the President included Sri Perikal M. Sundar, Vice-President and Sri B.T. Manohar, Chairman, GST among others.

GST Workshop at FKCCI The State GST Committee FKCCI, under the chairmanship of Sri B.T Manohar is rendering yeoman service to the trade and industry fraternity by updating them on GST-related issues, through regularly conducting GST workshops, said Sri C.R Janardhana, Senior Vice-President and Sri Perikal M. Sundar, Vice-President, at the Workshop on GST – An update for accountants held on Sep 21.

FKCCI is also conducting workshop on Central Taxes, APMC issues and other business related issues.

Sri B.T. Manohar Chairman, State GST Committee

made a presentation on latest amendments of the GST act, Rules, Notifications, Circulars and Orders. Sri R.G. Muralidhar, Tax Consultant and Vice-Chaiman of State GST Committee of FKCCI, made a presentation on maintenance of books of accounts. Sri Ashwin Sharma, Member of State GST Committee FKCCI, made detailed presentation on input tax eligibility and restrictions and Sri Mohan, Director of Tally Solution, presented a brief on Returns and Payments related to GST. Sri Ramakrishnan and Sri Padmarajan, Assistant Commissioner, Central Tax clarified the various queries raised by the participants.

13 | OCTOBER 2018

GST UPDATE

GST Audit Certificate required for Taxpayers with Turnover over Rs 2 cr

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discharged on account of non-reconciliation of turnover and input tax credit. The auditor may also recommend on erroneous refunds, outstanding demands, etc.

The Government through the notification No. 49/ 2018 - Central tax has notified the format for GSTR9C.

There is a separate table for disclosing additional amount payable on account of un-reconciled amount as per Sr. No. 1, 2, 3 and 4. Taxpayers should note that the said amount is to be paid in cash (and not credit).

he Government has notified the GSTR-9C Form for annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit.

Under GST, annual return is to be furnished in GSTR-9.

In addition, as per Section 35 of CGST Act, 2017, every taxpayer whose turnover exceeds Rs 2 crore during a financial year, is required to submit audited annual accounts and a reconciliation statement in GSTR-9C. GSTR-9C clearly states that it is essentially a reconciliation statement for reconciling turnover, input tax credits and tax payments reported in GST returns (annual return) vis-a-vis annual books of accounts.

GSTR-9C is broadly segregated into four categories: Gross turnover (including taxable and non-taxable turnovers), Taxable turnover, Tax liability and payments (rate-wise) and Input tax credit availment.

The reconciliation is to be accompanied with certification from the auditor (can be statutory auditor as well).

Further, there is a separate table for auditor's recommendation on additional liability to be

The format prescribes indicative sub-heads under which the expenses are generally booked in the financials (like freight, purchases, imports, employee cost, repair & maintenance, capital goods, etc.)

Taxpayer may add/delete the sub-head as per relevancy and against these sub-heads, the amount of input tax credit as reported in financials is to be reconciled with annual return. However, this is a new requirement and could be challenging for most taxpayers.

Two different certifications has been prescribed by the Government as part of GST Audit Format – one where reconciliation statement is drawn and audited by statutory audit and the other wherein it is drawn and audited by a person other than statutory auditor.

It will have to be seen in near future if the auditors will be able to grasp the prescribed language for certifications and if any changes in the language would be allowed while certifying the reconciliation statement. Part B provides format of the certification for better understanding.

GST Refund Process Simplified; GSTR-2A Form enough for Claiming Refunds To simplify the process of claiming GST refunds, the Finance Ministry has said that now simply submitting a printout of 'GSTR-2A' Form to tax authorities would be enough instead of giving invoices of all purchases in a month.

Goods and Services Tax (GST) refund had become a big problem for businesses due to liquidity issues, the Ministry has acknowledged.

Thus to simplify the process, the Government has come out with GSTR-2A, which is a purchase return auto-

14 | OCTOBER 2018

generated by the system for claiming refunds.

The Government said that the GSTR-2A form will serve as evidence showing which a claimant can avail input tax credit (ITC).

However, in cases where the GSTR-2A Form does not contain all details of all the invoices for which ITC is being claimed, tax authorities may ask for hard-copies of invoices.

GST UPDATE

The Government also clarified that if the GSTR-2A contains details of all the invoices, the tax officials cannot ask for a copy of invoices.

Integrated GST (IGST) refund was Rs 29,829 crore, a disposal rate of 93%. ITC claims of Rs 24,549 crore were also settled.

The Government earlier initiated several GST refund fortnights for speedy and bulk settlement of claims alongside helping businesses with the due process.

It was reported that some businesses were still facing troubles in getting refunds, to which the Government had said that it was devising a plan to expedite the process in cases where there were mistakes made in giving details.

The Government has cleared claims of over Rs 54,000 crore to exporters till July. Of the total amount,

Filing GST Returns can be a thing of the past if...Govt. implements two proposals under examination

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wo proposals for effecting procedural changes in the filing of tax returns under the GST regime could come as a boon for businesses currently reeling under complex returns filing processes.

A 'Committee on Invoice' set up by the GST Council is set to present these proposals before the Council in the coming days. According to a media report, these proposals if implemented can do away with the business' needs to file GST returns.

The first proposal which relates to business to business (B2B) transactions envisages the usage of a Distinct Invoice Number (DIN) which would be procured by the seller from the GST server.

Each invoice would carry the DIN, and the buyer would be required to cite the DIN in the purchase invoice while raising his own selling invoice after value addition from his end.

With both invoices being uploaded to the GST server, a

match between the same would enable the buyer to avail tax credit.

A key reason behind this proposal is to capture the details of the invoice which is the single most important document in any transaction which also captures details of the value chain and the taxes to be paid.

Currently, it was recognised that the “invoice, as such, is not being captured in its raw form anywhere�.

The second proposal aims to check the evasion of tax at the business to consumer (B2C) level by conferring a consumer number to every citizen.

After the procurement of any service or good, the consumer could log in to the GST portal and match the DIN in his invoice with his consumer number which would act as proof of his GST payment.

If the seller, in this case, does not discharge GST, then he could be caught and punished thus checking a source of tax leakage.

Happy Dasara Greetings from FKCCI to You and Your Family Members 15 | OCTOBER 2018

COVER STORY

Founder's Day Celebrations

Sir M Visvesvaraya Memorial Award 2018 for Dr. B.R. Shetty said he was now “interested only in working for the welfare of the people”.

Confessing that he always made it a point to take the blessing of Dr. Shetty whenever he visited Abu Dhabi, Sri Sudhakar Shetty described him as a rare example of a globally successful entrepreneur from Karnataka who was even more famous for his philanthropist activities.

Living legend

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ne word says it all: Spectacular. One moment captured it all: Dr. B.R. Shetty, the global business icon, overcome with emotion, after receiving the Sir M Visvesvaraya Memorial Award. And to top it all, there was the 20 minute lesson in history, behavioural science, and more, which one may not get in an entire university education, by the irrepressible Dr. Subramanian Swamy.

While a million smiles illuminated the Sir MV Auditorium at the celebration of the FKCCI's Founder's Day Celebrations on Sep 15, it may perhaps not be wrong to say that Sri Sudhakar Shetty, the President, wore the biggest smile of all.

It rained that evening, but despite it, the Auditorium was so jam packed that there was not even standing space left.

It did seem like everyone was determined to be a part of the event.

That spirit prevailed over everything else – the acoustics, the atmospherics, the gravitas and the pedigree of the distinguished eminences on the dais – and it could well be the spirit of Sir MV.

The celebrations began with a video presentation on the journey of FKCCI since its inception, which made for a spirited and nostalgic viewing.

Welcoming Dr. B.R. Shetty, the recipient of this year's Sir M Visvesvaraya Memorial Award, Chief Guest, Hon'ble Sri D.V. Sadananda Gowda, Union Minister for Statistics & Programme Implementation and Keynote Speaker, Dr. Subramanian Swamy, MP, the President, Sri Sudhakar Shetty revealed that he first met Dr. B.R. Shetty through Sri K. Ramaswamy, Chairman, Sir MV Awards, and then had to use all his persuasive powers to get Dr. B.R. Shetty to accept the Sir M Visvesvaraya Memorial Award who was not enamoured of such recognition, as he 16 | OCTOBER 2018

A living legend, Dr. B.R. Shetty who started his life as an “outdoor salesman” in the Middle East, rose to be the Founder & Chairman of NMC Healthcare, the largest healthcare provider in the region with over 200 facilities including Hospitals, Medical Centres, long-term care facilities, Day surgery centres, Fertility Centres and Home Health Service Providers across 17 countries treating over 8.5 million patients and collectively employing over 60,000 people through all his institutions worldwide, majority of whom are Indians with around 30% Kannadigas.

Welcoming the Chief Guest, the President also recalled his familiarity during his early days with Sri D.V. Sadananda Gowda, Union Minister for Statistics & Programme Implementation and also added that it was a special honour for FKCCI to hear the Sir MV Memorial Address from Dr. Subramanian Swamy, MP and a tremendously popular leader and acclaimed economist.

An emotional moment As the whole gathering stood on their feet to applaud the bestowing of the Sir M Visvesvaraya Memorial

COVER STORY

Award 2018 on Dr. B.R. Shetty, no one was really prepared or predicted the nature of his reaction to receiving the Award.

A few minutes into his thanksgiving speech, the moment came. Dr. B.R. Shetty's voice choked and his eyes filled up. He paused for a few moments to control his emotions and not succeeding, confessed, “Even though I have received many awards in the past, this Award is close to my heart and so means a lot more to me. Because, this is the first time that my family members are present to see me receive this honour.” He pointed towards them – his wife, son, sister and others – and then was overcome with emotion.

A heavy silence prevailed. It was a very private moment for the public figure in a public environment. The moment passed, and the gathering clapped, in unison, and gave Namma Jaga Mechhida Kannadiga a standing ovation.

A self-confessed admirer of Prime Minister, Sri Narendra Modi, Dr. Shetty then briefly touched on his life and works, his philosophy and vision, and declared simply that there is no shortcut to success, and once you arrive at that point in your journey, it is time to give back to society – as he is doing, touching the lives of millions of people all over the world. Saying that he looked forward to do a lot more, he declared, “I want to be like steel and not iron, because iron rusts over time, but not steel.”

Though he was by nature “very firm and tough”, Dr. Shetty said he made it a point to follow his mother's advice to behave in such a way that no one could point a finger at him for doing anything bad or disreputable.

Dr. Shetty also promised to make Jog Falls an all-season spectacle

and a tourist hub, as his CSR initiative. “I am glad the Government accepted my tender in 2014 and the Kumaraswamy Government has also promised me full cooperation,” he said.”Jog Falls has great potential to become one of the leading global tourist destinations, but for that the Centre must ensure that Shivamogga gets an international airport to facilitate better connectivity. Further, the Government must focus on other activities there such as horticulture, poultry, ayurveda, convention centre, etc.”

Urging the youth to be innovative and be willing to take risks like Sir M. Visvesvaraya, he called on them to shun the old risk-averse attitude of many Indians who would rather opt for “guaranteed poverty” than uncertainty arising from a risky venture.

Understanding Sir MV

High praise for FKCCI

And then the moment came which everyone was waiting for: The Sir MV Memorial Address by Dr. Subramanian Swamy, MP, which became even more special since it was also his birthday, for which the entire gathering stood up on their feet to greet him.

While it is well known that Sri D.V. Sadananda Gowda, Union Minister for Statistics & Programme Implementation is ever-smiling, the gathering got to know his another facet: Humility and grace.

“If you want to know Sir M. Visvesvaraya fully, read his two books, 'Nation-Building” and “Reconstruction of India” available in Amazon Prime,” Dr. Subramanian Swamy began. “At a time when India was deeply mired in poverty, he visualized and worked towards making India a developed country,” he observed.

“While we marvel at the beauty of the Jog Falls, he saw its potential to generate electricity.”

Calling for a change in the mindset of people, he gave the example of how 1000 goats would run away in fear from one tiger, while even five well-fed lions in a Circus would meekly obey the commands of the Ring-Master, because they were conditioned to fear him. “Indians are like Hanuman and do not know their strength,” he declared. “To realize your potential, change your mindset.”

He also said India was a blessed land, giving the example of how we could grow crops all through the year, unlike Europe, America, China and Japan which could grow only for 4-6 months in a year. However, he said we should increase our agriculture production and learn from countries like Israel.

Sri Gowda began by recalling that he knew Dr. B.R. Shetty since his childhood, along with their mentor, the late Dr. V.S. Acharya, and was delighted to be a part of an event where he was being honoured with the Sir MV Memorial Award. “Dr. B.R. Shetty has come a long way from serving the Udupi Municipality to becoming a Man of the World,” he said. He also paid his tribute to Sri Visvesvaraya, recalling his saying that if you are sincere, everything else will follow, while all your other attributes are of no value, if you are not sincere.

Sri Sadananda Gowda also profusely praised Sri Sudhakar Shetty for his “mind, strength and capacity” and for bringing together people, which he said, was a trait he had observed in him even when he knew him much earlier.

FKCCI Office Bearers and IPP, Past Presidents, Committee Chairpersons, MC Members, representatives of Affiliate Associations, Special Invitees, etc were present in full strength to make the celebrations memorable.

17 | OCTOBER 2018

COVER STORY: FOUNDER’S DAY CELEBRATIONS AT FKCCI

Remembering Namma Founder, Sir MV H H H H H H H H H

Sir M Visvesvaraya's birth anniversary on Sep 15 every year is celebrated as Engineer's Day in India.

It is said that Sir MV walked for over 60 km to attend the United Mission School, in Bengaluru and would also sit under the street lamps to study at night.

Besides being a world-renowned civil engineer, M. Visvesvaraya served as the Chief Engineer of Mysore State in 1909 and as the 19th Diwan of Mysore between 1912 and 1918.

Visvesvaraya won people's attention when he designed a flood protection system for the city of Hyderabad.

He was instrumental in developing a system to protect Visakhapatnam port from sea erosion.

M. Visvesvaraya received the Bharat Ratna, India's highest honour, in 1955 and won acclaim as the “Father of Modern Mysore State”.

He was awarded several honorary doctoral degrees including from eight universities in India.

India's legendary dam builder, M. Visvesvaraya, was credited for inventing the Block System for dams – the automated doors that shut during an overflow.

His most famous project was the Krishna Raja Sagara Lake and Dam, which was India's largest reservoir at the time. It provided drinking water for several cities. PM Modi has also paid tribute to him in his Mann Ki Baat saying "lakhs of farmers and common people continue to benefit from the Krishna Raj Sagar Dam built by him".

18 | OCTOBER 2018

EVENTS

International Trade Sub-Committee Meeting at FKCCI discusses initiatives for furthering overseas trade

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he International Trade & Delegation Committee of FKCCI should work to develop at least 50 Exporters and organize 6 foreign delegation visits abroad, said Sri Sudhakar Shetty, President, at its first Sub-Committee Meeting held at Training Room, FKCCI on Sep 22. The meeting presided over by Sri C.R. Janardhana, Senior VicePresident and Sri Perikal M. Sundar, Vice-President was held with the participation of Sri J.R. Bangera, Past President, Sri H.A. Kiran, Chairman, International Trade & Delegation Committee, and Sri K.K. Bopanna, Member, ASEAN Summit Committee, among other participants.

The President also presented a brief on his visit to Rwanda, Uganda, USA and Abu Dhabi/UAE, the proposal to set up a NRI Forum to act as a facilitator to prospective NRI and NRK investors wishing to invest in Karnataka, setting up of a Grievance Cell for responding to the grievances of the

Members, and urged each Member to introduce at least 10 new Members to enable the Federation to reach the target of 5000 Members this year.

Sri Perikal M. Sundar, Vice-President called for conducting a Seminar on Exports for the benefit of young enterprises wishing to foray into exports in particular.

The participants also discussed about the initiatives to be taken for furthering international trade and also the successful conduct of the upcoming ASEAN Summit.

It was during Sri J.R. Bangera's tenure as President in 2012 that the highly appreciated International Trade Directory and Export Directory was published which went on to become a reference point especially for students pursuing their MBA. In another major first-of-its-kind initiative, Sri Bangera as President organised a Consular Night for all Ambassadors and Embassy Officials as a PR exercise to improve relations and networking with international and trade officials Previous to that, the Export Excellence Award was first instituted in FKCCI by him when he was the Chairman of the International Trade Committee in 2006 when Sri S. Babu was at the helm as President, and which has now become one of the most landmark Awards given by FKCCI.

19 | OCTOBER 2018

ISSUES

TRAFFIC BLUES IN BENGALURU

Smart Solutions to ease Traffic jams “Bengaluru urgently needs Peripheral Ring Roads (PRR) and development of Satellite Townships in Ramanagara, Kolar, Tumakuru and Attibele. These townships have to be redesigned by BDA in such a way as to be self-contained with industrial, residential, medicare and recreational areas, so as to reduce congestion in Bengaluru. This is extremely critical since 16% of Bangaloreans are supposed to be vulnerable to diseases like asthma, according to a study.”

– Sudhakar Shetty, President, FKCCI

iven the increasing traffic jams in our cities, how does one optimise the use of the existing road infrastructure without additional capital expenditure?

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variable message signs strategically placed along roadways, to display real time information for a variety of situations including emergencies, construction and road closures.

The biggest problem facing transport in cities today is capacity, with road systems creaking under the strain of cars. The traffic snarls that are virtually a daily feature in Bengaluru reveal the sad state of our roads.

Most drivers can relate to being stuck in traffic wondering if a green light should have lasted longer in a particular direction given the traffic on that side. This can be resolved through adaptive signal control technology, wired together through an IP network adjusting to the demand of traffic in real time. Japan has already seen the successful implementation of this technology and reduced traffic congestion by 35%.

Bengaluru, like many of India's metros figures prominently in the global list of cities with the most painful commute. Traffic congestion has brought down the average speed of vehicles in key areas of the city to less than 5 km per hour during peak hours, due to several urban transport issues like poorly designed entry and exit points on roads and freeways, the dual presence of chaurahas and signals, the absence of lane markings and poor intersection management.

So how does one optimise the use of the existing road infrastructure without additional capital expenditure?

Boston Consulting Group's Suresh Subudhi and Vineet Vijayavargia recently made an interesting study and identified several intelligent traffic management solutions (ITMS) that aim to ease both existing and future challenges facing road traffic, which could form a starting point for framing a smart solution to Bengaluru's perennial traffic problem. The intelligent traffic management solutions (ITMS) suggested by them are given below: Advanced traffic advisory for one, uses various intelligent sub-systems like sensors, CCTVs, VIDs etc on roads and vehicles to provide 24/7 traffic advice on various aspects like current and future average speeds, delays, incidents, congestion, roadwork, adverse weather conditions, etc to a commuter on their smartphone. Complementing this could be the

20 | OCTOBER 2018

While most intelligent traffic management solutions are innovative, they're also practical. Variable lane capacity management makes congested highways/bridges/freeway systems more efficient, safe and functional. It reconfigures the roadway using movable barriers that are shifted back and forth several times a day to create high occupancy vehicle (HOV) lanes that match traffic demand. This dynamic solution offers real-time increase in road capacity and maintains positive barrier protection between the lanes.

The construction of U-shaped loops are worth considering as they minimise traffic congestion and significantly reduce the occurrence of severe crash types while facilitating movement across intersections without traffic jams. This solution delivers more for less, getting more cars through the same spaces than a conventional intersection with improved safety.

All of the above intelligent traffic management subsystems are implemented and integrated by a centralised traffic control centre, that also generates and transmits important traffic related information to facilitate intervention.

ISSUES

Tackling Bengaluru's traffic doesn't need more capacity than what's already planned Two simple changes can go a long way in tackling the traffic menace in Bengaluru.

One, remove the 1-way rule and make roads in central areas 2-way wherever possible like for example, Kempegowda Road and Seshadri Road. This has been in fact suggested by senior police authorities themselves some time back. Secondly, Parking should be allowed in front of all Metro stations and the Metro authorities may collect the parking fees from the users and pay the same to the BBMP. This will encourage a lot of people to use the Metro facility and thus reduce the density of vehicles on the roads. There are several Service Roads that can be used for parking l i ke fo r examp l e, th e s ervi ce ro ad s n ear Adichunchanagiri Math on either side.

– S. Babu, Past President, FKCCI

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or an alternate point of view, Captain Naveen Chandra, who has worked on Bus Rapid Transport (BRT) for Bangalore long ago, asserts in a post online that having more elevated roads is not the solution for the traffic mess. Clearly, Bengaluru needs to restrict roads and traffic, not increase them with road-centric projects to meet imaginary shortfall of capacity to meet demand, he declares, and observes pithily that experience is the ability to recognize a mistake when you make it again. So here is Captain Naveen Chandra's take on why elevated roads are not the solution and what according to him is the way out: The proponents for elevated freeways planned to be built cutting across the city claim many benefits, but the theory behind these has gaping loopholes. Here is how he analyses them one by one, objectively.

City has just 1,500 km of bus-worthy arterial /sub-arterial road network that cannot be widened. This assumption is true, but it raises questions that need to be asked: Will a mere 95km of elevated roads speed up buses on 1500km of buses on arterial /sub-arterial roads?

How will gridlocks be removed on the remaining 1405 km (94%) of “bus-worthy” roads?

How can dedicated bus lanes be provided on these 1405 km of bus routes, even assuming it is possible to provide them below elevated routes?

There are no other viable long-term alternatives. Mass rail transits (Metro phases 3 and 4) and suburban rail will have carrying capacity of only 40-50 lakhs people per day totally by 2030; This is entirely wrong and an uninformed premise. Metro ridership projections from its DPR estimates are as follows: Phase 1: 16.10 lakhs (33 km, no data on 9.3km phase 1 extension);

Phase 2: 18.17 lakhs (Extensions of the lines in Phase-1); Phase 2: 04.55 lakhs (RV Road-Bommasandra line); Phase 2: 05.58 lakhs (Gottigere-Nagawara line); Phase 2A: 04.59 lakhs (KR Puram-Silkboard line); Phase 2B: 01.50 lakhs (Nagawara-Airport via Yelahanka line).

Total: 50.49 lakhs (for length: 42.3+72.5+17.0+29.0 = 160.8km).

There is no data is available on Phase 3 that is likely to add about 100km more.

Going by average projected capacities as above, per km capacity is on average about 31,400 per day. The corresponding figure with actual ridership-per-km of Hong Kong metro is 27,712 (in 2017). There are systems with far higher ridership-per-km numbers (Tokyo, Cairo, Budapest, Sao paulo, Mumbai metro etc).

Assuming BMRC adds 100km in Phase 3, metro's capacity would rise by about 31,400 x 100 = 31.4 lakhs, making it a total of about 82 lakhs.

Assuming just 70% capacity utilisation, ridership would be close to 57.4 lakhs. In addition, suburban rail may cater to about 9 lakhs (could be higher if developed well and frequencies increased, last mile accesses are sorted out etc).

Thus, rail systems can cater to about 66.4 lakhs at the end of phase 3 at just 70% utilisation (Metro's phase-4 hasn't been considered above).

Thus, it is abundantly clear that off-street rail systems can easily cater to over 35% of daily trips.

Are dedicated bus lanes really possible on Bangalore's roads? If so, why have these road proponents not studied that aspect in detail and included bus lanes as part of their grand plans to enable buses to move faster?

21 | OCTOBER 2018

INDUSTRY ANALYSIS

Predictions for the Future of Print

By P.S. Venkatesh Babu

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hat will the future hold when it comes to the way businesses employ print to market their products? Recently, PrintWeek India put together the considered views of publishers, designers and packaging heads as to how they envision the future of print. A gist of their considered views is thought provoking and are therefore summarised below for the benefit of all those who are involved directly or indirectly with the printing industry.

Arpita Das, Publisher, Yoda Book: Print remains as relevant as ever, and is evolving and growing in all kinds of different ways. As an example, look at the fascinating potential of 3D printing for the content industry. For a small independent publisher in particular, print-on-demand continues to become more and more important and I hope that we will see even better quality at more reduced costs soon.

Ashwini Deshpande, Co-founder and director, Elephant: ...We need to look at a way for congruence of the Internet of Things (IoT) and artificial intelligence (AI) with print. I believe that's the future of print. The point is not to use all the printing technologies together, but to use the diverse technologies in collaboration with print for the betterment of lives.

Sales of Kindle titles have dropped and the decline of print titles has reversed.

Illustrated books have been lagging in digital book format and rightfully so. The beauty of high quality illustrations, the feel of the paper, the sensual pleasure of holding a superbly produced book, — almost like an art object — cannot be replicated by any digital medium.

Dipankar Mukherjee, Publisher, Readomania: There is a likelihood that print, as a medium, becomes more exclusive and aspirational, which has a potential to improve the margins in the business, though it will have a negative impact on the volumes. It is high time print learned to coexist with digital as a medium and work towards creating newer niches.

Hemant B. Randive, Vice-President, Production Services, FCB India: The costs are going through the roof and running an establishment is becoming more and more difficult. In this scenario paying back to the financier is a prime motto for the print firms. Hence they need continuous volumes. As a result, printers are falling in the trap of reverse auction. They have started believing that 'number of impressions' is the only name of the game. Having said that, there's a niche print segment, where printers still trust that bottom-line can be achieved even with lesser number of impressions. These are the print firms who are playing for a long haul.

Bhavika Shah, Creative director, Beyondesign: We are in a technologically fluid time but there is a misconception that print cannot be a part of the new age of scientific innovation. Although a lot is moving to digital, the print market is far from dissolution. The number of surfaces one can print on, ranging from plastic to metal to glass, is expanding. Threedimensional printing is coming up. Innovative print methods, especially when coupled with packaging and product design, may not merely be used for imprinting information but rather to create tactile experiences for the end consumer. I envision print techniques of the next year to be used for creating these experiences – in more tangible and innovative ways.

Jaya Bhattacharji Rose, International Publishing Consultant: From the perspective of a publishing consultant, printers need to engage more and more with the publishing community across the lines rather than only with the production department, introducing them to various techniques available on how to improve the quality of books, within the best costing available. Do more road-shows if necessary.

Bipin Shah, Publisher, Mapin Publishing: Print has made a comeback as per recent figures made available by the Bookseller and Publishers Weekly.

(The writer is Chairman, Directory & Publication Committee, FKCCI and CEO of Omkar Offset Printers, Bengaluru).

23 | OCTOBER 2018

MANUFACTURING

GOK's Compete with China Scheme resonates with FKCCI's Vision of promoting Industries at District-level Nine Karnataka Districts to turn manufacturing hubs diversification are: H

Kalaburgi: For manufacturing of solar power goods

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Chitradurga: For manufacturing LED lights

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he Karnataka Government's newly announced Compete with China Scheme resonates with FKCCI's vision of promoting industries at district-level beyond the State capital.

The State aims to promote manufacturing industries such as LED bulbs, furniture, electronic parts, etc in order to compete with Chinese-made goods.

Accordingly it has earmarked nine Districts in which programs will be implemented to manufacture items like solar power goods, LED lights, sanitary goods, mechanised toys, etc as part of its 'Compete with China' scheme.

The nine Districts where Programmes will be implemented to foster innovation and product 24 | OCTOBER 2018

Hassan: For manufacturing of sanitary goods

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Koppal: For manufacturing of mechanised toys

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Mysuru: For ICB manufacturing units

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Ballari: For textile industry

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Chikkaballapur: For mobile phone components

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Tumakuru: For sports and fitness goods

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Bidar: For manufacture of agricultural implements.

Hailing the decision to expand industrial growth at district level, Sri Sudhakar Shetty, President, FKCCI said it can potentially lead to exponential growth of ancillary units in the Talukas and villages and also lead to higher GDP growth. To ensure the Scheme reaches the target set, he suggested that the Government bring it directly under the Chief Minister's Office (CMO) for monitoring purposes or alternately, appoint a Special Officer with requisite powers for speedy decisionmaking and fast clearances.”

“What is required is a change in

the mindset so as to take up the implementation of the scheme in mission-mode.”

“The Chief Minister's novel idea of enabling manufacturing of spare parts at the village level, assembling them at the taluk level and marketing them at the district level where malls would be opened for the purpose needs to be helmed by successful entrepreneurs and field experts,” he said. “To ensure the success of this idea, we suggest that the vision group formed for each identified district use the services of the corresponding District Chambers.”

The Government has allocated Rs 500 crore for the 'Compete with China' scheme and set up vision groups for each district comprising of industry experts and leaders.

The industries will come up in clusters across various villages in the districts mentioned and the parts will be sent to an assembly line, which will be set up in the district headquarters.

The Hon'ble Minister for Large & Medium Industries and IT/BT & ST, Sri K.J. George recently chaired two meetings, with industry captains of the vision groups for ICB/Chip Manufacturing Clusters and Mobile Phone Components to get their feedback and suggestions.

The Vision Group members of the ICB/Chip Manufacturing cluster in

MANUFACTURING

Mysuru includes MOSCHIP, Texas Instruments, IESA (Indian Electronics & Semiconductor Association), ESDM Cluster, Velankani, Deshpande Foundation and Intel.

The Vision Group members of mobile phone components, Chikkaballapur includes Winstron Infocomm Manufacturing India, Foxconn Technology, India, IESA (Indian Electronics & Semiconductor Association), Karbonn, e-Parisara and Huawei Technologies India.

Produce or Perish Large-scale production of various commodities by China, in great demand the world over, has resulted in solar power goods, electrical lighting goods, bathroom fittings, electrical goods and electronic toys being

available even for the common man.

The tremendous development in manufacturing in China in the past two decades has seen goods from that country flooding the Indian market, due to which industries are on the verge of closure.

Quoting examples of programmes that can be implemented in various districts, based on resources and professional skill available in each area, the Chief Minister suggested that Kalaburagi district would be developed as “Bharath Solar District”. “The solar panel, inverters, capacitors and luminators for the production of solar power will be produced only in Kalaburagi district,” he said.

The electrical light industry in India is valued at about Rs 46,000 crore and this market is now being occupied by LED lights of Chinese make.

As regards ICBs and chips, 80 per cent of global demand for them is met by Taiwan and there is also a huge demand for ICB chips in India.

The budget has provided Rs 500 crore for training this year in seven districts and in the next four years, Rs 2,000 crore would be given in the form of equity share capital to private institutes participating in this industry. Private institutes would have to invest Rs 3,000 crore, and thus there would be a total of Rs 5,000 crore investment for each district. Overall, it is expected to generate 8 lakh jobs in each district.

Solar Roof Top Photovoltaic (SRTPV) Program launched

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ESCOM has launched Solar Roof Top Photovoltaic (SRTPV) program for the use of clean energy, to reduce loss and for reduction of day time peak which in turn benefits the consumer by way of less in monthly bill and regular income for the energy pumped to the grid.

Now BESCOM has launched a new redefined and simple online application which was developed by BESCOM engineers for the benefit of consumers which is more user friendly and transparent.

The link for accessing the SRPTV on line application is available on www.bescom.org>Solarrooftoponlineservices and also dedicated Solar Helpdesk 080-22340816 for assisting consumers.

Sriyuths Sudhakar S. Shetty, President, C.R. Janardhana, Sr. Vice-President, S. Sampathraman, Past President and V.G. Kiran Kumar, Chairman, CSR Committee participated in the event.

25 | OCTOBER 2018

SCHEMES

Kayaka Scheme For Self-help Groups (SHG) Self-Help Groups (SHG) in Karnataka can now avail loans on soft terms under the newly announced Kayaka Scheme. Such SHGs can in turn use the funds raised for training people who desire to do something on their own.

Scheme Overview: Objective: The Scheme has been designed for bringing about development of Self-Help Groups operating in the State and the money will be used for increasing skill development and entrepreneurship among the people.

Loan amount: The State Government will offer anything between Rs. 1 lakh and Rs. 10 lakhs to the Self-Help Groups.

Interest: The lending banks will not charge any interest for a loan amount ranging between Rs. 1 lakh and Rs 5 lakh. For an amount that ranges between Rs. 5 lakh and Rs. 10 lakh interest charged will be 4% interest only.

Primary implementation in five areas: The first phase of the Scheme's implementation will take place in five urban areas.

Total number of beneficiaries: During the primary implementation phase, the credit will be offered to as many as 3000 Self-Help Groups.

Acknowledging the utility of the Kayaka Scheme, FKCCI observed that financial assistance on soft terms to Self-Help Groups will empower them to train and develop small and marginal businesses, which could help a large number of people living in the margin of society to earn their own livelihood and also add to job creation.

Karavali Ratna Award for President

The Dakshina Kannada Kannadigara Sangha, Bengaluru presented the Karavali Ratna Award to Sri Sudhakar Shetty, President, FKCCI at an event organised by the Association. According to Sri Balekudru Ramachandra Upadhya, President of the 60-year-old Dakshina Kannada Kannadigara Sangha for the last 3 years in a row, the Karavali Ratna Award is given to recognise the record of salutary achievement and social service of people hailing from Karavali region, and Sri Sudhakar Shetty was an exemplary example who rose to the exalted position of heading a great and historic industry body like the FKCCI as the President from humble beginnings, through sheer dint of ability, sincerity and determination to succeed in his endeavours.

26 | OCTOBER 2018

START-UPS

Elevate Initiative proves to be a boon for Start-ups selection process has done a good job and the jury tasked with selecting the start-ups comprised eminent veterans with decades of experience from varied businesses/reputed institutions including TIE, Bangalore Chapter, NASSCOM and other Industrial Associations.

Funding from the Government for the shortlisted startups from multiple sectors varies from Rs 5 lakh to Rs 50 lakh depending on the size of the business.

But here's what should be done to improve the success rate which is alarmingly low at 3-5%.

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ri S. Sampathraman, Past President was one of the Jury Members for selecting Start-ups under Elevate 2018, an initiative of the Ministry of IT, BT & Science & Technology (S&T), Karnataka Government.

Here he shares his views about the Start-up culture in the State and how the State Government has been proactively promoting and fostering it, and also what can be done beyond Elevate 2018.

The Government of Karnataka has been an acknowledged pioneer in introducing new ideas for bettering the economic growth of the State, by way of many first-of-its-kind unique policies, viz. Industrial Policy, Start-up policy, IT/BT, Textiles & Apparels policy, policy for women entrepreneurs, and Electric Vehicle policy, to name a few. The State is also a pioneer in starting IT Parks and Global Investors Meets. It is no surprise that as many as 430 top MNCs have their R&D centres in Bengaluru, which is why it is known as IT Capital, BT Capital and Knowledge Capital.

After the first experiment of Elevate 100 introduced last year by then Minister for IT/BT, Sri Priyank Kharge, the present edition of Elevate 2018 introduced by his successor, Sri K.J. George, has chugged along nicely with 600 participants out of which, interestingly, 60% were from rural areas, and 25% of these were shortlisted among the 77 start-ups.

Equally impressive, around 25% of all the qualified start-ups are women-led and, of these, over 95% are organisations where women are co-founders or CXOs PwC, the Consultant for Elevate 2018 responsible for putting in place the three evaluation levels for the

So far the experience till now has been that mainly business ideas from the IT/BT stream have come up in large numbers.

Perhaps more preparation could have been done before Elevate 2018 to give much more emphasis on agriculture and allied sectors for increasing farm productivity, organic farming, food processing, packaging, transportation with cold chains, water management, post harvest infra creation, agro marketing, sericulture, spices, fisheries, milk, dairy products, honey, cashew nuts, spices, pulses, etc. The State Government should come up with specific incentives to promote start-up ideas in these areas that primarily use local resources of the district or the village, native special skills like handicrafts, Ayurveda and Yoga practices and other unique geographic specialities. Encouraging these sectors will help to create local jobs and significantly check congestion and crowding of cities and arrest migration of unemployed youth.

Another important area that needs fresh thinking is the alarmingly low success rate of Start-ups which is hardly 3-5%. The reason for this overwhelming failure is that the Start-ups are not introduced to the nitty-gritty of the business process and are not cognizant of the taxation and compliance requirements. Slowly they get embroiled in situations they are neither attuned to, nor capable of appropriately responding to as they progress, and over time hand over the business to some venture capitalist or an angel investor and exit from the business.

How do we prevent this inevitable result and also check the falling success rate of start-ups? The prospective entrepreneur participants must be given training before taking part in the programme and also provided with incubation support for their new ideas. Mentoring support, along with incentives and concessions from pro-industry friendly policies, can work wonders, and the success rate can successfully go up!

27 | OCTOBER 2018

FKCCI Sir M V Auditorium

Second Floor - Infrastructure Capacity Purpose

Facility

Third Floor - Infrastructure Capacity Purpose

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We have Auditoriums, Conference rooms, Training rooms and Meeting rooms with huge areas which could be occupied by a large number of participants during events, training, conference or seminar.Our building is prominently located in the historic heart of the city which makes it easy for participants and facilitators to travel/stay as there are several lodging facilities in the vicinity and the city bus & railway station is just five minutes away from our venue.

Capacity Floor Area

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FKCCI Sir M V Auditorium

Second Floor - Infrastructure Capacity Purpose

Facility

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Capacity Floor Area

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DISTRICTS ROUNDUP

Rs 4K Crore Investments, 35K Jobs coming to Mysuru

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he city of Mysuru is poised for an uptick in new industry growth, with investments to the tune of Rs 4000 crore in the offing. According to reports, various proposals have been submitted to the Government by industries for establishing their units which could, if approved, generate around 35,000 jobs.

Disclosing this after a tour of industrial areas in Mysuru and Nanjangud, which included Kadakola Industrial Area, Himmavu Industrial Area, Adakanahalli Industrial area, Women's Industrial Park and the Asian Paints Plant which is coming up at Adakanahalli, the Minister for Large and Medium Scale Industries, Sri K.J. George told media persons that Asian Paints was investing Rs.2,500 crore on its Plant and nine other major industries, including Carlsberg (Rs.130 crore), PepsiCo (Rs.130 crore) and Parle Industries (Rs.600 crore) were setting up their units. Three other proposals submitted by Gerbils Continental and Pricol are under consideration, he added.

Further, Cheers Breweries, Kenwood, Container Corporation of India, Rucha Engineers, Minda SAI and Metalman Auto (P) Ltd. are the other industrial groups setting up Plants in the district.

Welcoming the investments in Mysuru, FKCCI called for fast clearances of the proposals made and said it augured well for the State policy of developing Tier-II cities industrially and taking the focus away from Bengaluru which had reached saturation point.

Other major policy announcements H

Work on developing a Women Entrepreneurs Park at Thandya Industrial Area has commenced on about 50 acres and around 25 acres would be allotted for developing a Textile Park. The officials were now identifying lands allotted for Industrial development which have not been used for the purpose even after several years of allotment.

Further, notices would be issued to the players concerned asking them to either begin industrial development or prepare for Government reclamation of the land.

H

On land identified for developing a Film City near

30 | OCTOBER 2018

Mysuru, the 110 acres identified for the purpose was being acquired by KIADB (Karnataka Industrial Areas Development Board) on behalf of the Government. Once it is acquired, the next process will begin.

H

Four new Industrial Areas have been proposed in Nanjangud taluk with around 400 acres of land identified in Kochanahalli, Adakanahalli, Thandya and Kallahalli to set up units and also, the KIADB has been directed to identify 10 acres of land to set up Truck Terminals near Koorgalli and Metagalli in Mysuru.

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Regarding the investments in the State following the last Global Investors Meet, many firms had signed Expressions of Interest and have made investments in the State.

The KIADB has reserved 500 acres near Sindhuvalli based on a request from TVS Motors, 50 acres near Kochanahalli, 100 acres on Gaddige Road, 100 acres on Bannur Road in city and 50 acres in K.R. Nagar for industrial development.

Hebbal Industrial Area is the biggest Industrial Area in Mysuru, with 487 units established on 1,603 acres. So far, around 1,754 industrial units have come up in 5,871 acres of land in and around Mysuru.

Grievances Made NR MLA, Sri Tanveer Sait, former MLA, Sri Vasu and Office Bearers of Mysore Industries Association (MIA) apprised the Minister of the problems, including lack of basic facilities that have come in the way of allotment of plots and also appealed for release of Rs.10 crore to provide basic facilities and Rs 20 crore for widening of roads in Industrial areas. Nanjangud MLA, Sri Harshavardhan asked the Minister and authorities concerned to direct the industrialists to give job opportunities to locals, especially the land losers.

They also requested that the KIADB should develop 50Ă—80 plots in all layouts for micro industries.

DISTRICTS ROUNDUP

Rs 340 Billion worth Projects proposed for 3 Mining regions - Ballari, Chitradurga & Tumakuru

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ood days will be back soon for the mining industry in Karnataka. Projects worth Rs 340 billion have been proposed for the development of three important mining regions in Karnataka, viz. Ballari, Chitradurga and Tumakuru.

According to media reports, a detailed presentation was made and discussed during the recent review of the progress of the Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) scheme in Bengaluru recently.

The presentation by the State officials was reportedly made under five broad heads including socio-economic activities, ecorestoration, forest and ecology activities, road infrastructure to support mining, study report on proposed railway lines and the total outlay for proposed CEPMIZ scheme.

The social economic factors include housing, sanitation, skill development, health, women and child welfare.

The financial outlay for the proposals compiled by KMERC includes eco-restoration and socio-economic development- Rs 227.02 billion; road Infrastructure - Rs 59.70 billion and railway lines (without the cost of land and cost escalation) - Rs. 53.82 billion.

It is proposed that tourism development be included as an

alternate employment generation sector to compensate for job losses resulting from automation in the mining sector.

During discussions, the CEC reportedly suggested that before opening up new forest areas for mining it would be prudent to ensure the full utilisation of the mineral resources available in the already opened up areas.

There are also plans to build roads - connecting mines to mines, mines to major roads/ bypasses so that vehicles carrying minerals are able to avoid using roads passing through villages. A RITES official is said to have informed that the total ore and mineral deposits, according to an IBM Report, in Tumakuru and Chitradurga districts were in the region of 151.108 MMT and this could increase up to 350 MMT once mining activities are fully taken up in Chikkanayakanahalli and Hosadurga range.

In Ballari district, the quantum of mining activities from various mines is about 40.3932 MMT per annum.

The IBM report says that while the quantum of mining will be around 389.852 MMT for 20 years, there is an additional 350 MMT in Ramadurga range.

There is a possibility that the auction of new blocks of over 198 Ha. may yield an additional 20 MMT.

Meanwhile, Federation of Indian Mineral Industries (FIMI) has reportedly objected to some of the proposals, including laying of railway lines, and stated that a report being drawn up by E&Y was under preparation and would be shared soon.

The CEC had suggested that the components of proposals that will be placed before the Supreme Court should conform to the objectives of the CEPMIZ scheme. While priority should be given to building capital assets for the community in each of the components, the maintenance expenses after a period of five years of operation should be met from the State budget.

It was also suggested that the maintenance component of the State schemes under no circumstance be included in CEPMIZ proposals.

The free distribution of articles to individual beneficiaries is also to be stringently excluded from the scheme.

The overall financial outlay will be limited by the funds that are expected to accrue to the SPV, including those in the next 10 years.

The CEPMIZ scheme, therefore, has to be implemented in a phased manner keeping in view the priority accorded to the various schemes, the CEC said.

31 | OCTOBER 2018

SERVICES SECTOR

Now, BIS to set Standards for Services too he Bureau of Indian Standards (BIS) has kicked off the process to set new standards to measure quality of services offered to consumers across different sectors, including Telecom, Aviation, E-commerce and Healthcare.

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initial focus will be on the 12 champion services sectors identified by the Government. These include IT, tourism and hospitality, transport and logistics, accounting and finance services, legal services, communication services and construction.

The BIS, which sets the quality regulations for various products from gold to bottled water had called a meeting of industry bodies to “persuade them to be part of the process and give their inputs.”

The Bureau of Indian Standards (BIS) standards' is set to formulate a framework for quality services that should be provided to consumers and also about the benchmarks to deal with consumer complaints or after sales service in an effort to ensure quality in the services sector.

“Service sector is one of the key sectors of the Indian economy with a huge potential to grow into one of the largest markets of the world. Standards can play a major facilitative role in this regard. It is important that the standardisation needs and priorities of the sector are determined,” a senior official has been quoted as saying in the media.

During the meeting, the BIS pointed out that the

At the meeting with industry bodies, it was decided that the BIS will set up a separate 'divisional council' for services in a month's time. Under this, different technical committees will be set up - one for each service. The committees will have various stakeholders such as government officials, experts and industry representatives

SERVICES SECTOR OVERVIEW Dominant and all-pervasive The Services sector is not only the dominant sector in India's GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. The sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.

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SERVICES SECTOR

Market Size The Services sector is estimated to contribute around 54.0 per cent of India's Gross Value Added in 201718 and employs 28.6 per cent of the total population. Net Services exports from India grew 14.98 per cent year-on-year to US$ 77,562.89 million in 2017-18.

As per Ministry of Statistics and Programme Implementation's second advance estimates of National Income 2017-18, services sector GVA is expected to grow to US$ 1,266.10 million in FY18.

Investments The top 10 categories of Indian services sector attracted FDI equity inflows in the period April 2000December 2017, amounting to about US$ 22,095.51 billion according to the Department of Industrial Policy and Promotion (DIPP).

Some of the developments and major investments by companies in the services sector in the recent past are as follows: The domestic and foreign logistic companies are optimistic about

prospects in the logistics sector in India, and are actively making investments plans to improve earnings and streamline operations.

Leisure and business travel and tourism spending are expected to increase to Rs 14,127.1 billion (US$ 216.9 billion) and Rs 806.4 billion (US$ 12.4 billion) in 2018, respectively.

Government Initiatives The Government of India has recognised the importance of promoting growth in services sectors and provides several incentives in wide variety of sectors such as healthcare, tourism, education, engineering, communications, transportation, information technology, banking, finance, management, among others.

The Centre has stated that India's priority will be to work towards Trade Facilitation Agreement (TFA) for services, which is expected to help in the smooth movement of professionals.

The Government of India has adopted a few initiatives in the

recent past. Some of these are as follows: Under the Mid-Term Review of Foreign Trade Policy (2015-20), the Central Government increased incentives provided under Services Exports from India Scheme (SEIS) by two per cent.

Government of India is working to remove many trade barriers to services and tabled a draft legal text on Trade Facilitation in Services to the WTO in 2017.

Road Ahead Services sector growth is governed by both domestic and global factors.

The Indian facilities management market is expected to grow at 17 per cent CAGR between 2015 and 2020 and surpass the US$19 billion mark supported by booming real estate, retail, and hospitality sectors.

The implementation of the Goods and Services Tax (GST) has created a common national market and reduced the overall tax burden on goods. It is expected to reduce costs in the long run on account of availability of GST input credit, which will result in the reduction in prices of services.

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A SILENT REVOLUTION

Fast Moving Consumer Goods (FMCG) sector growing at a faster pace in Rural areas than in Urban areas

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ast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy with Household and Personal Care accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The urban segment (accounting for a revenue share of around 55 per cent) is the largest contributor to the overall revenue generated by the FMCG sector in India However, in the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India.

Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of total rural spending.

Buoyant revenue growth The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20-25 per cent per annum, which is likely to boost revenues of FMCG companies. Revenues of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020.

Latest Developments The Government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing and singlebrand retail and 51 per cent in multi-brand retail. This would bolster employment and supply chains, and also provide high visibility for FMCG brands in organised retail markets, bolstering consumer spending and encouraging more product launches.

The sector witnessed healthy FDI inflows of US$ 13.63 billion, during April 2000 to June 2018. Some of the recent developments in the FMCG sector are as follows: In May 2018, RP-Sanjiv Goenka Group created an Rs 1 billion (US$ 14.92 million) venture capital fund to invest in FMCG start-ups.

In August 2018, Fonterra announced a joint venture with Future Consumer Ltd which will produce a range of consumer and foodservice dairy products.

34 | OCTOBER 2018

Policy Initiatives Some of the major initiatives taken by the government to promote the FMCG sector in India are as follows: The Government of India has approved 100 per cent Foreign Direct Investment (FDI) in the cash and carry segment and in single-brand retail along with 51 per cent FDI in multi-brand retail.

The Government of India has drafted a new Consumer Protection Bill with special emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice to consumers.

The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG products such as Soap, Toothpaste and Hair oil now come under 18 per cent tax bracket against the previous 23-24 per cent rate.

The GST is expected to transform logistics in the FMCG sector into a modern and efficient model as all major corporations are remodeling their operations into larger logistics and warehousing.

The future is bright Rural consumption has increased, led by a combination of increasing incomes and higher aspiration levels; there is an increased demand for branded products in rural India.

The rural FMCG market in India is expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in FY18.

In FY18, FMCG's rural segment contributed an estimated 10 per cent of the total income and it is forecasted to contribute 15-16 per cent in FY 19.

Another major factor propelling the demand for food services in India is the growing youth population, primarily in the country's urban regions. India has a large base of young consumers who form the majority of the workforce and, due to time constraints, barely get time for cooking.

It is estimated that India will gain US$ 15 billion a year by implementing the Goods and Services Tax. GST and demonetisation are expected to drive demand, both in the rural and urban areas, and economic growth in a structured manner in the long term and improve performance of companies within the sector.

NEWS TRENDS

Retail market likely to touch Rs 80 trillion in 2020

6

0% growth in 2 years: It's nothing short of phenomenal for India's retail market. Buoyed by consumerism, rising income levels and foreign direct investments in consumer-facing sectors, India's retail market may touch Rs 80 trillion in 2020 from close to Rs 50 trillion now.

A joint report from Deloitte and Retailers' Association of India shows the retail sector is emerging as one of the largest sectors in the economy.

As investments flow in and the goods and services tax in place, the share of organised retail is expected to increase to 20 per cent by 2020 from less than 10 per cent now.

E-commerce is creating the biggest revolution in the retail industry, with marketers now able to reach hinterlands of the country.

The trend will continue in the years to come. With e-commerce booming in India in recent years, this opens up a significant investment opportunity for foreign retailers.

India's GDP to grow at 7.5% in fiscal 2020: IMF Go Grow India! India's GDP is poised to grow by 7.3 per cent in the 2018-19 fiscal and 7.5 per cent in 2019-2020 on strengthening of investment and robust private consumption, the IMF has said in its latest projection.

The International Monetary Fund (IMF), in its latest report has said that the near-term macroeconomic outlook for India is "broadly favourable."

Growth is forecast to rise to 7.3 per cent in fiscal year 2018/19 and 7.5 per cent in 2019/20 on strengthening investment and robust private consumption, the report said.

Headline inflation is projected to rise to 5.2 per cent in fiscal year 2018/19, as demand conditions tighten, along with the recent depreciation of the rupee and higher oil prices, housing rent allowances and agricultural minimum support prices, it said.

The current account deficit is projected to widen further to 2.6 per cent of the GDP on rising oil prices and strong demand for imports, offset by a slight increase in remittances, the report said.

The report recommended that continued fiscal consolidation is needed to lower elevated public debt levels, supported by simplifying and streamlining the GST structure.

SC restores 'Safeguard duty' on Solar Cell Imports The Supreme Court has allowed the Centre to levy 25 per cent safeguard duty on solar cell imports.

The duty on solar cells - the basic ingredient needed to manufacture solar panels - was imposed for a year, ending July 19, 2019, and the tax was to reduce to 20% for the six months till January 29, 2020, and 15% for the subsequent six months.

The Odisha High Court had passed an interim order staying imposition of 'safeguard duty' on import of solar cells.

The Orissa HC, hearing a writ petition against the duty filed by local solar plant developers, had barred the government from imposing it till August 20, but the government went ahead and slapped the 25% impost on July 30.

On the request of domestic solar cell manufacturers, the Director General (Safeguards) on a preliminary finding had imposed a provisional safeguard duty of 70% ad valorem on import of solar cells.

35 | OCTOBER 2018

It was challenged by Shapoorji Pallonji Infrastructure Capital Co Ltd before Madras HC, which dismissed the petition on April 16.

Another importer - ACME Solar Holdings Ltd - moved Delhi HC for similar relief and its petition was disposed of after recording that the petitioner would submit a representation to the Centre against the preliminary finding of the DG (safeguards).

In the meantime, the DG, after a detailed examination, gave final recommendation for imposition of safeguard duty at 25% for first year followed by 20% in the second year.

Why it is Tough for Directors to give up their ID Number

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nce you have obtained a Director Identification Number (DIN), it sticks to you like a shadow and - barring limited circumstances - you cannot voluntarily surrender it. Several corporate law experts hold that former Directors, who have no wish to continue on other Boards, should be allowed to surrender their DIN. Ongoing compliance is especially challenging for erstwhile foreign directors.

A recent news item that the Government has decided to deactivate the DINs of as many as 21 lakh directors was followed by a frenzy of messages on social media groups. The reason? After September 15, which was initially set as the last day for the KYC compliance, several top political leaders and a few Bollywood superstars had their DIN deactivated. It is believed that these individuals were no longer Directors on the Board of any company, including those once promoted by them.

A few days later, the Government gave defaulting directors another chance - KYC details could be filed by October 5, with a fee of Rs 500 (reduced from Rs 5,000). According to industry watchers, this extension too was likely to get a lukewarm response.

Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014, is restrictive when it comes to surrender of a DIN. According to a company secretary quoted in the media, as regards voluntary surrender, a DIN holder can do so only if he/she has never been associated as a Director in any company and the said DIN has never been used for filing of any document with any authority. But such instances are rare, and holding a DIN comes with its annual KYC filing obligations and intimation of any change in particulars such as address.

Some individuals may have obtained a DIN in specific circumstances which no longer apply, such as acting as a first Director to facilitate company incorporation. Or by a foreign national on secondment as an MD to India for a limited duration, who may now have moved on, or by a Director of a company which has been liquidated.

Even if these individuals have no intention to act as Directors in other Indian companies, under current law they all still need to make filings and maintain their DINs. While the annual form is to be e-filed, experts say that erstwhile foreign directors face greater compliance challenges, such as notarisation of identification documents.

According to a law firm quoted in the media, if an individual chooses not to be a director, he/she should have the ability to surrender DIN and all formalities that go alongside. Perhaps here a distinction should be made in regards to executive and non-executive directors. Of course, DIN records would exist to take care of past activities.

But there are practical issues. As a company secretary firm has opined, once DIN is surrendered, the Corporate Affairs Ministry's database may show no past association with any companies and stakeholders like creditors, shareholders, foreign investors, various authorities will face challenges in identifying directors in companies where non-compliance or frauds have occurred. An option like keeping the DIN dormant or inactive for filing can be considered.

On the flip side, according to another company secretary firm, it does not view the inability to surrender as a material issue. Holding a DIN does not prevent anyone from undertaking other roles, it said.

36 | OCTOBER 2018

MONEY MATTERS

Significance of Cost & Management Accounting in Present Business Scenario - I

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he total Cost of a Product, Service or Project (hereinafter referred to as “Cost Object�) consists of various components, some of which can be identified with the Cost Object directly and it would not pose any challenge in attributing the cost thereof.

However, many costs are common to multiple products, services or projects and incurred at multiple locations at different points of time. Some of these costs are essential for manufacture of goods, execution of projects or rendering of services, some of the costs need to be incurred as part of administration requirements of the business organization where as some costs are essential for marketing, selling and distribution of the products, projects or services, as the case may be. Costs should be captured at the right time for each product or project or service, wherever possible and captured through various cost-centers based on the nature and function thereof. The treatment of various costs in general is explained below for easy understanding, with method of compiling it for Product, Project or Service.

Cost of Materials Consumed: The major component of cost of any manufactured product or a construction project is materials consumed. It is necessary to account all the expense related to procurement of materials and bringing into inventory and compute the average cost of materials procured per unit. Cost of any input material procured should be landed cost comprising of, the value charged by the supplier, any transportation, loading and unloading charges incurred thereon. In case of Imported materials, cost of materials purchased converted in to INR, Customs Duty & Cess or Surcharge levied thereon, Import Freight, Inland Transportation, Loading, Unloading, Import Clearance expenses, etc.

Total cost of procurement shall be reduced by any credit of taxes levied by the suppliers (E.g. GST) and any subsidy or incentive received from any Government in respect of any material purchased. Once the materials are procured and accounted, the inventory value should reflect the total cost of materials and average cost of such materials per unit. For the purpose of assigning the cost of materials consumed, materials may be classified as below: Direct Materials: Raw Materials and Components which form the core part of the Finished Product.

Stores, Consumables and Process Chemicals: Materials of small value which are used in production, but which do not form identifiable part of the finished goods. Example: H.R. Sreepada Lubricants, screws, waste cloth, etc. These materials supplement the production of the final product and lose their identity or don't go in to the finished product.

Primary Packing Materials: Materials which are required to hold and protect the product. Example: Bottles, blister pack, primary carton pack, etc. in pharmaceutical industry, bubble sheet in electronic industry, etc.

Secondary Packing Materials: Materials which are required for storing and transportation of goods.

Example: Gunny or HDPE Sacks, carton boxes, pallets etc.

Direct Labour/Manpower Cost: Total emoluments paid and payable to the workers and supervisors who are directly involved in the manufacture of any product, rendering of any service or execution of any project. This cost component should comprise of all the benefits including gratuity, leave encashment provision, uniforms, food, insurance, transportation and the cost of all other benefits provided to such workers whether they are on the rolls of the business entity or hired through a contractor or manpower supply agency.

Direct Expenses: All expenses such as Job-work or processing charges, sub-contracting charges and any other expense which is directly related to a specific product, project or service, excluding Direct Materials and Direct Manpower Cost.

Utilities (Power, Fuel, Water, ETP, etc): Electrical Power (purchased or captively generated), industrial gases, diesel, water, effluent treatment plant expenses, etc are required for carrying out production activity, but these do not form part of the finished product or service.

Requirement of utilities vary from industry to industry and the volume also differ from product to product or services. By having separate mechanism for measurement of consumption these costs shall be assigned to the product, project or service for which the same are used. Wherever the quantum of consumption

37 | OCTOBER 2018

MONEY MATTERS

of these resources cannot be ascertained, the same can be assigned to the Cost Objects (Products, Projects or Services) on some logical and rational basis to ensure that the costs are reasonable absorbed by the concerned Cost Objects. Depreciation and maintenance expense on any asset used for providing any utility shall form part of the related utility. Example: Cost of electricity power consumed should be the weighted average cost of purchased power and captively generated power. In that case the depreciation on the generator, power plant, maintenance expenses etc. should be considered for computing the captively generated power. Similarly, in case of ETP expenses, depreciation and maintenance expense of effluent treatment plant, need to be considered.

Depreciation: Depreciation on Plant, Machinery, Equipment used for production of goods, execution of projects or providing services, Depreciation on Factory or any other building used or directly related to factory or project operations or warehouse, Amortisation of any design or operations related software and Depreciation on any other assets used in or in relation to production of goods, execution of projects or provision of services shall be included in the cost of goods produced, services rendered or projects executed.

Repairs & Maintenance: Cost of spare parts or any materials used, Cost of Services used for repairs and maintenance of plant, machinery, equipment etc., required for operations or factory, project site or warehouse building, manpower cost used for any operations related or factory premises maintenance shall be included under this cost. Wherever the cost can be identified with a specific product or project or service it can be attributed to that product or project or service as the case may be. Wherever the costs are common and attributable to multiple products, projects or services, such costs can be assigned to the Cost Objects on some logical and rational basis.

Research & Development: Cost of manpower, materials, external services and other resources used for research of new products or new processes or methods of innovation relating to production processes for existing products or development of new products, designing cost of new products or development in the existing products form part of this cost. Any costs under this head relating to products manufactured shall be attributed to the concerned product. However, wherever such R&D expense are very huge, the same can be charged off to the products concerned over a reasonable period spreading across more than one

38 | OCTOBER 2018

year. In case the R&D expenses relate to any new product or the project which have not taken off, the cost can be deferred and spread over a reasonable period after the product or project becomes a reality as a result of such research or development.

Quality Control Expenses: Cost of manpower, materials, external services and other resources used for quality assurance or quality assurance of the outputs of a business entity, all such costs can be identified separately and assigned to the related products, projects or services. Wherever such costs are common to a variety of products or services, the total costs can be apportioned to the products manufactured of services rendered during an accounting period on some rational basis.

Technical Know-how Fees or Royalty: Wherever a business entity acquires production or work technology from others, it shall pay cost of such technology in lumpsum or on regular basis over a period of time. So long as such technology is related to production of goods, execution of or projects or providing service in the form of royalty or technical fees, the said cost shall be assigned to the concerned Cost Object. This cost forms part of Cost of Production of Goods or Cost of Operation of Services or Cost of Execution of Projects.

Other Production Overheads: All Indirect Expenses relating to factory or site operations, such as common manpower cost (cost of plant, production managers, stores & purchase Staff, etc.), transportation charges, security cost of factory, warehouse or project sites, and administration costs relating to operations, other than those included in any other heading specified above.

Total of the costs compiled above forms part of the cost of production of goods or execution of projects or provision of services. Average cost of such cost objects can be ascertained by dividing the total costs by the quantity (No.) of units produced, projects or services executed. Each type of product or project or service shall be treated as a separate unit to arrive at the unit cost.

Example: In case of a building construction project comprising of multiple flats of various size or dimension, cost can be compiled for the project as a whole and then assigned to the group of similar units in the building on the basis of area and facilities provided and then unit cost can be arrived at by dividing the total cost for each such groups by the number of units in each group.

(To be continued) (The writer is Vice Chairman & Chairman, PD Committee, The Institute of Cost Accountants of India, Bangalore Chapter)

NOTIFICATIONS

Amendments made in Finance Act 2018 Applicable for Year ended March 31, 2019 The following are the changes made in the Finance Act 2018 which is applicable to financial year 201819.

1.

Standard deduction of Rs.40,000 from salary and pension income

2.

Exemption for transport allowance has been withdrawn (exemption for differently abled individuals still continues to exist)

3.

Deduction limit under section 80DDB: This deduction is allowed when an individual or HUF taxpayer pays for the medical treatment of critical illness for himself or family members. The deduction limit for senior citizens is Rs.1,00,000 and in any other case it is Rs.40,000.

4.

A deduction up to Rs.50,000 is allowed for senior citizens u/s 80TTB in respect of interest earned on savings deposits and fixed deposits received from banks, post offices and cooperative banks (80TTA is withdrawn for senior citizens)

5.

Deduction u/s 80D for Mediclaim insurance has been increased to Rs.50,000 for senior citizens (for self or parents)

6.

7.

8.

Education cess has now been substituted by health and education cess and shall be computed at the rate of 4% on aggregate of Income-Tax and Surcharge Exemption u/s 10(38) for long term capital gains has been withdrawn. Long term capital gains would be taxed at 10% in excess of Rs.1 lakh (No indexation benefit).

Taxability of compensation in connection to business u/s. 28: It is proposed to amend Sec. 28 to provide that any compensation received or receivable, whether revenue or capital, in connection with the termination or the modification of the terms and conditions of any contract relating to its business shall be taxable as business income. This amendment will take effect from 1st April, 2019 and will, accordingly,

apply in relation to assessment year 2019-20 and subsequent assessment years 9.

Sec. 54EC exemption only for immovable properties: Exemption under Section 54EC shall be allowed only if long-term capital gains arising from transfer of an immovable property (land or building or both) are invested in the specified bonds within a period of six months after the date of such transfer up to Rs.50 lakhs. The lockin period of such bonds has also been increased to 5 years.

10. No adjustments shall be made in case where the variation between stamp duty and sale consideration is not more than 5% of the sale consideration.(sec 50C) 11. Profits and gains from a construction contract or a contract of services to be determined on percentage completion method in line with ICDS.( Sec 43CB) 12. 44AE Presumptive taxation scheme in case of goods carriage: In the case of heavy goods vehicle (more than 12MT gross vehicle weight), the income would be deemed to be an amount equal to Rs. 1,000 per ton of gross vehicle weight or unladen weight per month for each goods vehicle The vehicles other than heavy goods vehicle will continue to be taxed as per the existing scheme i.e.Rs.7,500 p.m per goods carriage.

39 | OCTOBER 2018

NOTIFICATIONS

13. Disallowance of expenditure paid in cash

by Trusts: Trusts or institutions will also be required to follow the provisions of TDS and will make all expenses in excess of Rs. 10,000 through banking channels. Consequently, the provisions of TDS disallowance under section 40(a)(ia) and expenses dis-allowance under section 40A(3) and 40A(3A) shall be applicable while computing the application of income in case of trusts or institutions.

14. No adjustment under section 143(1) on account of mismatch with Form 26AS: Section 143(1)(a)(vi) provides that while processing the return of income, the total income or loss shall be computed after making addition for the difference in income appearing in Form 26AS or Form 16A or Form 16 and income shown in the ITR. Generally, salaried taxpayers are mostly aggrieved by this adjustment.

It is now proposed that no adjustments shall be made in respect of Income-tax return furnished on or after Assessment Year 2018-19 just to account for the difference in the income reported in ITR and displayed in tax passbook or tax certificates.

The Members are required to take note of the above changes and comply with the amended law.

3.

The deduction u/s 80DDB is increased for senior citizens to Rs.1,00,000/- from Rs.60,000/- for the amount paid for medical treatment of critical illness of himself or family members

4.

Standard deduction of Rs.40,000/- is allowed from pension income

5.

Pradhan Manthri Vaya Vandana Yojana (PMVVY):

I.

A pension scheme has now higher investment limit of Rs.15 Lakhs from Rs.7.5 Lakhs earlier.

ii.

This scheme has an assured 8 percent return (8.3 percent annual payout option) and will now be available till March 2020.

iii.

Monthly pension due to increase in limit has been increased to Rs.10,000 p.m. from Rs.5,000 p.m.

Suggestions: 1.

There are dedicated medical insurance policies available for senior citizens now. For a 60 year old person needing a cover of Rs.10 lakhs, the annual premiums range from Rs.27,000/- to Rs.75,000/- depending upon the features. It is beneficial to take up the policies to claim deduction u/s 80D up to Rs.50,000/-

2.

The Health policies from insurance providers such as Star Health, Religare Bajaj Allianz, Apollo Munich and HDFC Ergo for the maximum sum assured.

3.

Senior citizens savings scheme (SCSS) is a best investment scheme which provides returns of up to 8.3% p.a. (Maximum investment limit is Rs.15 Lakhs, Tenure - 5 years which can be extended to 3 more years and interest payment on quarterly basis)

4.

Hence senior citizens are advised to invest a portion of their savings in PMVVY after exhausting SCSS limit, to generate stable monthly pension of up to Rs.10,000/-

Benefits to Senior Citizens 1.

2.

A deduction up to Rs.50,000/- is allowed for senior citizens u/s 80TTB in respect of interest earned on savings deposits and fixed deposits received from banks, post offices and cooperative banks. (80TTA is withdrawn for senior citizens). No deduction for company deposits.

Deduction u/s 80D for medical insurance premium paid for senior citizens (for self or parents) have been increased to Rs.50,000/from Rs.30,000/. Also where premiums are paid for cover more than one year, the amount can be split proportionately over the years.

40 | OCTOBER 2018

FKCCI'S FLAGSHIP EVENT

ASEAN Summit to see participation from nations contributing over 40% of world exports/imports

Y

ear 2019 will start with probably the biggest business event in India – and will be held in Bengaluru by FKCCI. Consider: The event will see representatives from a region that contributes nearly 42% of the entire world's exports/imports.

Welcome to the ASEAN Chamber of Commerce and Industry Business Summit proposed to be held during Jan/Feb 2019 by FKCCI, in line with the legacy of its Founder, Sir M Visvesvaraya, to enhance Trade and Business relationship across borders.

Giving details, Sri Sudhakar S. Shetty, President said the ASEAN PLUS EIGHT countries include the ten ASEAN countries namely Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, plus eight other countries namely, Australia, China, India, Japan, New Zealand, Republic of Korea, Russian Federation and the United States. These countries also constitute the East Asia Summit (EAS) Bloc. With a population of 3.4 billion and GDP of 49.5 trillion, this group accounts for about 44.7% of world population and 39% of the world GDP making it one of the largest and important blocks. The ASEAN PLUS exports/imports as percentage of world exports/imports is around 42% and thus the most dynamic region of the world in terms of economic growth and trade.

“FKCCI is taking the lead in organizing a unique meet of ASEAN PLUS EIGHT countries' Chambers of Commerce to promote Trade and Commerce among these nations and agree on common interests to improve business,” Sri Sudhakar Shetty explained. “It will be a common forum to share the experiences amongst the Chambers of other countries in the context of cooperation in Trade, Industry, Commerce, Technology and Innovation among the ASEAN PLUS EIGHT countries.”

Apart from promoting, identifying and enhancing mutual business development, the Summit will also enable to share Best Practices through Trade and Commerce bodies.

“This is the best way to usher in Industry's Next Practices,” said Sudhakar Shetty, “which is one of our other main goals.”

Sudhakar S. Shetty President, FKCCI

This event is the first of its kind as there has not been any meet of the major Chambers of Commerce of ASEAN PLUS and that too in Bengaluru.

The ASEAN PLUS business network event will include meetings with the major Chambers of Commerce of ASEAN PLUS countries including India, B2B, B2G and B2C meetings, Trade fair including stalls of ASEAN PLUS countries, conventions and seminars over a period of two days in Bengaluru.

As per the tentative programme, the ASEAN Plus Summit will be inaugurated by the Prime Minister or Senior Minister from the Government of India. Senior Ministers from ASEAN PLUS Countries, Ministers from State Government, Dignitaries, Diplomats and Business Leaders will also participate.

The Chambers of Commerce Meet will be inaugurated by the Chief Minister of Karnataka.

The Summit will highlight the market trends and latest developments in the following sectors in particular: Automobile & Auto Components; Aero Space and Defense; Engineering/Fabrication; Smart Cities; Agri/Horticulture and Food processing; Health & Pharmaceuticals; Ayurveda & Yoga; Herbal Tourism; IT & Start-ups; Textiles & Garments; Gems & Jewellery; Education & Skill Development; Fintech; Logistics; and Medical Electronics.

Representatives of the following countries will participate as Special Invitees, viz. UAE, Hong Kong, United Kingdom, France, Germany and Israel.

41 | OCTOBER 2018

SUCCESS STORY

Be Bold. Take Risk. Invest: Business Gyan from Veteran Entrepreneur

W

hat do youngsters do the first day after finishing college? Go for a movie. Have fun with friends. Or simply take it easy doing nothing of any consequence for once.

In 1982, after completing his graduation in Commerce, a young Shiva Shanmugam had no such luck. His father, Sri R. Kuppuswamy, ordered him to take care of clearing the goods, at his factory, Sivasakthi Engineering Company, the very next day after college. Surprisingly, he didn't crib about it and went on to develop a fancy for manufacturing – and then earned his spurs in procurement, marketing, finance management, admin and accounts maintenance.

A family business with father and brother, Sri K. Ramaswamy who helmed the FKCCI as President in 2000-2001) too a part of it, Sivasakthi Engineering has grown by leaps and bounds since its inception, leapfrogging from a business turnover of Rs 3 crore in 2002 to Rs 35 cr now. The secret: Honesty, the age-old, eternal virtue, says Shiva Shanmugam, as part of the company's Best Practices. “Today, they say, it its Sivasakthi Engineering, take it,” he says with visible pride. Beginning as the earliest Barrel making unit in south India, Sivasakthi Engg today operating from two units in Bengaluru and Chittoor, is the major supplier of open top barrels, closed mouth barrels and spiral seam barrels to oil companies and fruit pulp manufacturing companies among others and has successfully withstood the booms and busts of the steel industry and weathered several storms over the last nearly 40 years such as unhealthy competition, shortage of Steel supply and inflation. “If you have quality and perfect delivery schedule, you are winning the game,” Shiva Shanmugam says.

The other sister concern is R. Kuppaswamy, the Consignment Agency for Vizag and previously for SAIL and Kudremukh.

An incorrigible optimist by nature, Shiva Shanmugam says the only viable option for providing livelihood to 125 crore Indians – especially when 60% of them are below 26 years of age – is to encourage people to become entrepreneurs as it is practically impossible to provide government jobs for so many people. “We

42 | OCTOBER 2018

are the youngest country in the world in terms of demographic profile. So we are attuned to be bold, take risk and invest. Do this, and I can assure you that the success rate will be over 90%,” he declared.

“Also, contrary to what is generally understood, there are unlimited K. Shiva Shanmugam Past President opportunities for a youngster to succeed as an entrepreneur, given the vast market size in our country, the unlimited potential for growth and the ever expanding opportunities. There are also a number of incentives and support schemes from both the Central and State Governments, such as soft loans, less loan interest rate, no collateral up to a prescribed amount, credit guarantee, marketing assistance, industrial sheds, subsidies, concessions, technical assistance (CMTI), Tool room, items reserved for MSME, purchase and price preference policy for MSMEs, etc. So there are hundred reasons why one should aspire to become an entrepreneur,” he said.

At FKCCI, Shiva Shanmugam's tenure as the President in 2012-13 and as Chairman of the Tourism Committee for seven years, is remembered fondly for many initiatives such as the Centenary Celebrations which was presided over by then President of India, Sri Pranab Mukherjee, the conferring of the Sir MV Memorial Award on global spiritual guru, Sri Sri Ravishankar and the Seminar on Business with Ethics chaired by the spiritual guru which saw participation from 20 countries and over 750 dignitaries, the empowering of women entrepreneurs, the thrust on developing tourism when he got the State to increase the budget for tourism from Rs 25 crore to Rs 300 crore and crystallizing the concept of Homestays, the hosting of RBI Governor, Dr. Subba Rao among many other top dignitaries, among the 128 programmes held over a period of 12 months, which works out to nearly an event every second or their day.

What are the other highs according to him in his

SUCCESS STORY

service at the FKCCI overall? He names a few, like laying of the Foundation Stone for Sir MV Auditorium by Chief Minister, Sri Siddaramaiah just a few days before the end of his tenure, the Budgetary Grant of Rs 10 crore for FKCCI, and the letter of approval for land for Skill Development Centre at 50% lesser price, the publishing of the Karnataka Tourism Directory and the South India Tourism Directory, garnering Expression of Interest (EOI) to the extent of Rs 2500 crore during the Kodagu Business Development Summit (out of which Rs 900 crore has actually been invested on the ground), having the privilege of meeting the three topmost people of India, viz. Hon'ble, President, Sri Pranab Mukherjee, Vice-President, Dr. Hamid Ansasri, and Prime Minister, Sri Narendra Modi, apart from regularly interacting and winning the appreciation of three Chief

Ministers of Karnataka, Hon'ble, Sri Jagdish Shettar, Sri Sadananda Gowda and Sri Siddaramaiah.

Incidentally, Sri Shiva Shanmugam was also Member of Advisory Board of Tourism Department, Karnataka and now has been nominated as President of Trade & Industry of Karnataka for the ruling Janata Dal(Secular) and is also the Chief Minister's Advisor on issues related to industry and trade.

Reinventing Karnataka as a global tourist hub and developing Tier-2 and Tier-3 cities is his dream and he added that he would like the FKCCI to promote South India Tourism by organizing, Dakshin Utsav as promotional venture including a 3-day Exhibition where foreigners, press, Consulate Members, travel agents, etc should be invited, and

incidentally the Tourism Minister of GOK has offered to extend its support in informal talks with him.

Though having a modern mindset, Sri Shiva Shanmugam, a devotee of Bhagwan Satya Sai Baba is also traditional, living in a joint family where 52 people live together under one roof!

The biggest hurdle in business in his experience is corruption and needless harassment by officials, and the solution for all this, he says is improving the Ease of Doing Business.

For a man who has the ears of Chief Minister, Sri HD Kumaraswamy, Shiva Shanmugam shows no airs, and it's lucky, that the FKCCI had people like him at the helm. “Lucky” literally, for he could well have forayed into cricket as a professional, as he was known as “the Garfield Sobers of Bangalore” by K.K. Tarapore, during his young days...

FKCCI's Youth India Committee is Dream Project of President to empower Young Entrepreneurs

T

he new initiative, FKCCI Youth India Committee is the dream project of President, Sri Sudhakar Shetty to empower youth to achieve excellence in business, said Sri I.S. Prasad, Chairman, Youth India Committee at its first meeting held on Sep 26 at FKCCI.

“The Government has realized the importance and potential of youth who can make a difference by virtue of dedicated and committed efforts to be successful in their business and therefore both the Central and State Government have brought out policies for young entrepreneurs, MSMEs/ Start-ups and women entrepreneurs so as to help them sustain and compete in the most competitive and challenging market,” he said and summed up that if young entrepreneurs wish to scale up in their business they have to innovate and excel.

43 | OCTOBER 2018

TEAM FKCCI

Ordinary & Patron (Life) Membership September - 2018 SMALL SCALE MANUFACTURING ACTIVITY M/s. Sri Vijaya Siddeswara Oil Industries Nagaramgere Village, Bangalore Road, Chellakere-577522, Chitradurga (Dist) Tel. 224202 | Mobile – 9845384216 svsoilind@gmail.com Category : Ordinary Area of Business : Groundnet Oil Mill Mr. K V Ravichandra, Managing Partner M/s. Triangle Innovations Pvt Ltd No. 16, 1st Floor, 21st 'A' Cross, MRS Layout, Telecom Layout Road, Sunkadakatte Industrial Area Bengaluru-560091 Category : Ordinary Area of Business : Smart Sweeping Machine Mr. Prakash Hosadurga, Director M/s. Unipick Foods Pvt Ltd. No. 500, Unicorn House, 8th Main, West Wing, Amarjyothi Layout, Domalur, Bengaluru-560071 Tel. 25357801 | Mobile – 9611122281 mail@unipick.in Category : Ordinary Area of Business : Pickles Processing Mr. Sanjay B Sanghani, Managing Director Mr. Kartik Bipin Sheth, Director M/s. Vijaylaxmi Industries Plot No. 37, Opp Govt. High School Main Road at Ankalga Post Kurikota Humanabad Road Kalburgi-585316, Mobile – 9945971951 vijay.mgrds@gmail.com Category : Ordinary Area of Business : Dall Milling Mr. Vijaykumar Lingaraju Baba, Proprietor LARGE SCALE MANUFACTURING ACTIVITY M/s. Don Construction Chemicals India Pvt Ltd. No. 47/1, 4th Main, 3rd Phase, Peenya Industrial Area, Bengaluru-560058, Tel. 28376339 | Mobile – 8144633339 marketing.india@dep-int.com gurunath.srinivas@dep-int.com Category : Ordinary Area of Business : Construction Chemicals Mr. A N Srikant Raj Urs, Managing Director

44 | OCTOBER 2018

M/s. Fenwick and Ravi No. 10/3, Lakshmipura Main Road, Chikkabanavara Post, Abbigere, Bengaluru-90 Tel. 23453949 | Mobile – 9880019661 fenwickthomas@gmail.com | jabinataj@gmail.com Category : Ordinary Area of Business : Machine Tool Accessories Mr. Fenwick Thomas, Mr. R Ravi, Partners M/s. Mikrotek Machines Limited No. 16 'A' Sector, 2nd Cross, Amruthnagar, Street Opp to Shree Sharadha Vidyalaya School, Bengaluru-560092 Tel. 42688999 | Mobile – 9845013919 anithakamal@mikrotek.org Category : Ordinary Area of Business : Natural Diamond Dies Mr. Batchu Anitha Kamal, Director M/s. Hari Darshan Sevashram Pvt Ltd No. 1251, 20th Main, 5th Block, Rajajinagar, Bengaluru-560010, Tel. 23104009 Mobile – 9810287000, haridarshan@gmail.com Category : Ordinary Area of Business : Incense Stick & Incence Cone Mr. Pankaj Nagdev, Director SMALL SCALE TRADING ACTIVITY M/s. Aydi International Trading Pvt Ltd No. 9/10, L-Cross, Bismillahnagar, Bannerghatta Main Road, Bengaluru-560029 Mobile – 7022266313 , 7malikhan@gmail.com Category : Ordinary Area of Business : Rice Exporter Mr. Muhammad Ismail, Director M/s. J T Ramesh No. 6/31, Cocount Complex,7th Cross, APMC Yard, Yeshwanthpura, Bengauru-560022 Mobile – 9035099604 Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. K N Anilkumar, Partner

TEAM FKCCI

Ordinary & Patron (Life) Membership September - 2018 Mr. M R Processed & Fresh Fruits Pvt Ltd No. 35, 4th Floor, Church Gate Bengaluru-560001 | Tel. 40900431 Mobile–9980899044 | info@mrfruits.in Category : Ordinary Area of Business : Canned Fruit Juice Mr. R M H Kamran , Director Ms. Kaushik Tadphale, Director M/s. P L Melgiri Behind APMC Yard, Old Mallur Road, Byadgi-581106, Haveri Dist Tel. 08375-228338 | Mobile – 9448382852 parashurama.melgiri@gmail.com Category : Ordinary Area of Business : ChilliMerchants Ms. P L Melgiri M/s. Sri Lakshmi Traders No. 7/14, South Godown, APMC Yard Yeshwanthpur, Bengaluru-560022 Mobile – 9341232627 sri_mookambika@yahoo.co.in Category : Ordinary Area of Business : Food Grains &Pulses Mr. Vastupal P Sangvi, Partner Mr. Kusum V Sangvi, Partner

M/s. Sri Someshwara Enterprises No. 189, 6th Main Road, APMC yard, Yeshwanthpur, Bengaluru-560022 Mob: 9341958449 | pavansk1@gmail.com Category : Ordinary Area of Business : Whole Sale Rice & Pulses Mr. S K Pavan, Partner

M/s. V C Electronics No. 326, New, No. 443, M G Koppal.Abhishek Circle Mysore-570016 Tel: 0821-4852050 | Mob: 9964950130 vcelectronics.inspire@gmail.com Category : Ordinary Area of Business :Electronic Home Appliances Ms. Seema K , Proprietor

LARGE SCALE TRADING ACTIVITY

M/s. B S Sales C/O. B S Sannagoudar, APMC Yard 'B' Block, Ranebennur-581115 Mobile – 9448990663 sannagoudar@gmail.com Category : Ordinary Area of Business : Trade in Mobile Distributors

Ms. Chandru Sannagowdar, Proprietor M/s. Kabra Trading Company F-13, Kushal Garden Arcade, 1A, Peenya Industrial Area, Bengaluru-560058 Mobile – 9341904748 kabratradingco.@gmail.com Category : Ordinary Area of Business : Corbon Steel, Mild Steel Rounds Mr. Satish Kabra, Proprietor M/s. Madeena Traders No. 25/38, Bhadra Complex, Opp. MGB Complex, APMC Yard Yeshwanthpur, Bengaluru-560022 Tel – 41169611 | Mobile – 9448708714 cnshivaprakash@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. C N Shiva Prakash, Partner Ms. Gulsheer Unnisa, Partner M/s Maruthi Enterprises No. 719, 4th Cross, 3rd Block, BDA Land APMC Yard, Yeshwanthpur, Bengaluru-560022 Tel – 40964640 | Mobile – 9845163423 maruthienter12345@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. K.V. Satyanarayana Gupta, Partner M/s. S T C Traders No. 210, 6th Main Road, APMC Yard, Yeshwanthpur, Bengaluru-560022 Mobile – 9611367776 stctradersapmc@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. G Dileep Kumar, Partner

45 | OCTOBER 2018

TEAM FKCCI

Ordinary & Patron (Life) Membership September - 2018 M/s. Shree Mahalakshmi Commercials No. 43/A, Ground Floor, Shop No.2, 3rd Cross, 5th Main, Lorry Stand, Godown Street, APMC Yard,Yeshwanthpur Bengaluru - 560022 Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. A S Praveen Kumar, Partner Ms. A Geetha Praveen, Partner M/s. Sri Annapoorneshwari Commercial No. 237/64, 6th Cross, 6th Main, APMC Yard Yeshwanthpur, Bengaluru-560022 Tel – 41627626 | Mobile – 9880440999 Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. Girish, Proprietor M/s. Srikanth & Co. No. 710, BDA Land, APMC Yard.

Yeshwanthpur, Bengaluru-560022 Tel – 41283455 | Mobile – 9945210420 catchvicky1982@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. Vikranth Bhasin, Partner Mr. Srikanth Bhasin, Partner Mr. Sri Mahalingaeshwara Traders No. 205, 6th Main, APMC Yard,Yeshwanthpur, Bengaluru-560022 Mobile – 9448477039 mahalingappar@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. R Mahalingappa, Proprietor Mr. Sri Malemahadeshwar Traders No. 43/U-2, 4th Cross, Godown Street 9th Gate, APMC Yard, Yeshwanthpur Bengaluru-560022, Mobile – 9972870670 mallikarjunhshalasabele@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. Mallikarjunaiah H S , Proprietor M/s. Sri Satyanarayana Traders No. 21/31, Coconut Complex, APMC Yard Yeshwanthapur, Bengaluru-560022 Mobile – 9986556544 ramkaladi@gmail.com Category : Ordinary Area of Business : Whole Sale Rice& Pulses Mr. K T Ramanjaneya, Partner

46 | OCTOBER 2018

LARGE SCALE TRADING ACTIVITY-PATRON M/s. Bhotika Ispat Pvt Ltd Plot No. NS-1, 5th Cross, 1st Stage Peenya Industrial Area, Bengaluru-560058 Tel. 28392489, Mobile – 9341221026, 9019694916 | ajaybhotika@yahoo.co.in Category : Patron Area of Business : Dealers and Stockists for Carbon and Alloy Steels Mr. Ajay Kumar Bhotika, Mr. Akash Bhotika, Mr. Neha Bhotika, Directors SMALL SCALE SERVICE ACTIVITY

M/s Axim Automation Technologies Pvt Ltd No. 4/152, Pantibettu House, Sanoor Village Panchayat, Karkala, Udupi-574110 Tel – 40921225 | Mobile – 9964319568 abhijith@aatpl.com Category : Ordinary Area of Business : Industrial Automation Services Mr. Abhijith Shetty, Director Mr. Vishal H G, Director M/s. B R M Freight Services No. 25/1, Ground Floor, Southend Road Sheshadripuram (Near Sampige Theater) Opp. Corporation Bank ATM , Bengaluru-20 Tel – 23468388 | Mobile – 9980642446 sts.gowda@yahoo.com Category : Ordinary Area of Business : Freight Services Mr. Nanjunde Gowda M S, Proprietor M/s. Be Brainy Educational Foundation No. 518, 13th Cross, 7th Main, ISRO Layout, Bengaluru-560078, Tel: 26661728, Mob: 9686223889, mekhalahiriyanna@gmail.com

Category : Ordinary Area of Business : Childern Resource Workshops in Schools Ms. Mekhala Hiriyanna, Proprietor M/s. Biocad India Pvt Ltd No. 163/C, 3rd Cross, 3rd Phase J P Nagar, Bengaluru-560078 Tel – 41699773 | Mobile – 9916176596 parusu.venkatrao@biocadindia.com Category : Ordinary Area of Business : Clinical Research Oraganisation Mr. Krishnamurthy Rao, Managing Director Mr. P S S Babu H R, Head

TEAM FKCCI

Ordinary & Patron (Life) Membership September - 2018 M/s. Frontier Holidays Pvt Ltd No. 361, 2nd Floor, 7th Cross, Jayanagar 1st Block Bengaluru-560011 Tel – 26571632 | Mobile – 9845183803 accounts@frontierholidays.com Category : Ordinary Area of Business : Tour Operator Services Ms. Bharathi Shetty, Managing Director Ms. Ashwini B V, Director M/s. Goldklix Business Services Pvt Ltd No. 001, Sobha Dahlia Belandur Varthur Hubli Sarjapur Outer Ring Road, Bengaluru-560103 Mobile – 9945276121 arvind@goldklix.com

M/s. Sri Ramana Maharshi Hospitality Services Pvt ltd No. 12, KUHCS, 3rd Block, Basaveshwara Nagar, Bengaluru-79 | Tel – 23102051 Mobile–9448058564, andaram.shetty@gmail.com

Category : Ordinary Area of Business : Hospitality Mr. Anandaram B Shetty, Director M/s. Tenshi Kaizen Pvt Ltd No. 30, "Galaxy' 1st Main Road, J P Nagar, 3rd Phase, Bengaluru-560078 Mobile – 9686675423, kumaresh.c@tenshi.co.in Category : Ordinary Area of Business : Research & Development Mr. Kumaresh C, A G M

Category : Ordinary Area of Business : Finance & Management Consultancy Mr. Brahmakal Arvind, Director Mr. N Sanjeevi, Director

M/s. Vyomus Consulting No. 1319, 1st Floor, 24th 'A' Main, 9th Block, Jayanagar, Bengaluru-560009 Tel – 26636149 | Mobile – 7338130164 info@vyomusconsulting.com

M/s. Pragati HR Services KRP Building, No. 1, 2nd Cross, L N Colony Yeshwanthpur, Bengaluru-560022 Mobile – 9986635209, 9886251583 arun@pragatihr.co.in

Category : Ordinary Area of Business : Management Consultancy Activities Ms. Yamuna Omprakash, Partner Dr. C Omprakash, Partner

Category : Ordinary Area of Business : H R Consultancy Services Mr. R P Deepa, Proprietrix

M/s. Winnwin Leadership Academy Pvt Ltd Flat 002, SSKA Apartment No. 19, Narayana Reddy Road, Banaswadi, Bengaluru-560043 Mobile – 9886008640 talentstimulator@gmail.com

M/s. Quess East Bengal FC Pvt Ltd No. 50, 5th Floor, Park Plaza, No. 71 Park Street, Kolkata-700016 | Mobile – 9845162677 Subrata.nag@quesscorp.com Category : Ordinary Area of Business : Sporting Activities Mr. Subrata Kumar Nag, Director

Category : Ordinary Area of Business : Leadership Training Mr. Rajanikanth K, Managing Director Ms. K Indumathi, Director SMALL SCALE SERVICE ACTIVITY-PATRON

M/s. Simai Management Consulting & Analytics 5th Floor, No. 176, Dollars Colony, Phase 4 J P Nagar, Bannerghatta Main Road Bengaluru-560076 | Tel – 48534469 Mobile – 9449364982, simaiadmin@simai.co.in

M/s. Universal Coaching Centre No. 2922/20, Chord Road, Near Attiguppe Bus Stop, RPC Layout, Vijayanagar, Bengaluru-560040 Tel – 23397437 | Mobile – 9845512051 rupendrashetty@gmail.com

Category : Ordinary Area of Business : Consulting and Analytics Services Mr. Girija Vittalan, Director

Category : Patron Area of Business : Coaching Institute Mr. R Upendra Shetty, Proprietor

47 | OCTOBER 2018

TEAM FKCCI

Ordinary & Patron (Life) Membership September - 2018 LARGE SCALE SERVICE ACTIVITY

PROFESSION

M/s. Chinnaswamy Ammani Tane Petro Latum CA Site No. 6, 14th Main, 1st Stage Kumaraswamy Layout, Bengaluru-560078 Tel – 266693198 | Mobile – 9845159593 perumal.sid@gmail.com Category : Ordinary Area of Business : Auto LPG Mr. Perumal C , Proprietor

M/s. K G Acharya & Co. No. 14, Gayathri, Girlas School Street Kumara Park West, Seshadripuram Bengaluru-560020 | Tel – 23461600 Mobile – 9448060868, acharya@kgacharya.com

M/s. Greet Technologies Pvt Ltd. No. L-144, 5th Main, 6th Sector HSR Layout Bengaluru-560102 | Tel – 25543000 Mobile – 9844125467 | govt@greettech.com Category : Ordinary Area of Business : I T Services Mr. Amit Tantri, Director Mr. Jagdish Prasad Tantri, Director M/s. Tenshi Life Sciences Pvt Ltd. No. 30, "Galaxy' 1st Main RoadJ P Nagar, 3rd Phase, Bengaluru-560078 Mobile – 9686675423 kumaresh.c@tenshi.co.in Category : Ordinary Area of Business : Consultancy Services Mr. Kumaresh C, Asst. General Manager M/s. Wings Brand Activations (I) Pvt Ltd Wings House, No. 236, 5th Main 2nd Block, HRBR Layout, Bengaluru-560043 Tel – 25429532/33 | Mobile – 9886129902 suresh@wings-promos.com Category : Ordinary Area of Business : Event Management Mr. Biorn Waring, COO, Mr. Suresh Babu, CFO Mr. Anoop Mathew, Regional Director LARGE SCALE SERVICE ACTIVITY-PATRON M/s. Kshithija Infotech Pvt Ltd No. 329, Kshithija House,10th Main Road 1st Stage, 2nd Phase, Gokula Extension, Mathikere, Bengaluru-54 | Tel – 23373706 Mobile – 96322011111 | thyagu@kipl.ind.in Category : Patron Area of Business : Total Solution Provider Mr. J Thyagaraja Babu, Managing Director Ms. Hemalatha T, Director

48 | OCTOBER 2018

Category : Profession Area of Business : Chartered Accountant Mr. K Gururaj Acharya, Managing Partner Mr. H Vinay Kumar, Partner M/s. T V Veerabhadrappa & Co. No. 64/1, 8th "B" Cross, 3rd Block, Jayanagar, Bengaluru-560011 Tel – 26630164 | Mobile – 9980321872 t.veerabhadrappa@gmail.com Category : Profession Area of Business : Chartered Accountant Mr. T V Veerabhadrappa, C A M/s. Tukarama and Company No. 1074, 11th Main, West of Chord Road, 2nd Stage, Mahalakshmipuram Bengaluru-560086 | Mobile – 9740229944 info@tukarama.com Category : Profession Area of Business : Chartered Accountant Mr. Tukarama, Proprietor ASSOCIATION The Chamber of Tax Consultants No. 03, Rewa Chambers, Ground Floor 31, New Marine Lines, Mumbai-400020 Tel – 22001787 | Mobile – 9448629663 office@ctconline.org Category : Association Area of Business : Association Mr. Hinesh R Doshi, President Mr. Vipul K Choksi, Vice President Mr. Narendra Jain, Convenor-CTC ASSOCIATION-PATRON

M/s. Karnataka State Tax Practitioners Association No. 3043, 'Nirmala Nilaya' 15th Cr, BSK 2nd Stage, Bengaluru-560070 | Tel – 26760780 Mobile – 9980066380 | kstpakar@gmail.com Category : Patron Area of Business : Association Mr. S Sanjunda Prasad, Vice President S Prakash, Secretary N Phaneendra, Treasurer

TECHNOLOGY

5G likely to be launched by 2020 The Panel feels the quantum of licensed mobile spectrum in India is much lower as compared to countries like the US and the UK. Also, the cost of spectrum, relative to per capita gross domestic product, is much higher than most countries.

T

he 5G road map pursued by India should not only move the country forward but also result in progress of weaker sections of society.

Fifth-generation (5G) telecommunication services, which can create an economic impact of $1 trillion in India by 2035, are expected to be launched in the country by 2020.

To make 5G a success in India, a steering committee on 5G has suggested increasing the quantum of spectrum with lower pricing.

The Committee, headed by Stanford University Professor A J Paulraj, was formed in September last year to formulate a roadmap for 5G in India.

“Both these factors drive up infrastructure costs. Also, in recent years, the high cost of spectrum has left large quantities of unsold spectrum. It is important that India correct these anomalies in 5G,” the Panel said.

It has also been proposed that to enhance spectrum availability, there should be coordination with relevant ministries, and 5G spectrum should be allocated at the earliest.

According to the Committee, the 5G roadmap pursued by India should not only move the country forward but also result in progress of weaker sections of society.

The Panel has also proposed some kind of financial support as 5G networks will need new business models which will bring higher investment risks to service providers.

“By acting early to embrace the 5G opportunity, India can accelerate the 5G dividend and potentially also become an innovator in 5G applications,” the Panel said in its report submitted to the Government.

“We recommend that the Government offer a comprehensive support package. One example of support can be to designate 5G networks as essential infrastructure and allow telecom service providers access to capital at lower cost,” the Panel has recommended.

The Panel has given wide-ranging recommendations entailing spectrum policy, regulatory policy, development of application standards, education, etc.

Regarding 5G trials, the Panel said significant follow-up is needed to ensure successful trials that advance India's 5G progress.

49 | OCTOBER 2018

PHOTO FEATURE

Felicitation to President at APMC Yard, Yeshwanthpur, Bengaluru by APMC Yard Association President, Sri B.L. Shankarappa and Members in the presence of Sri D.V. Sadananda Gowda, Hon'ble Union Minister for Statistics & Programme Implementation on Sep 20

President felicitating Sri Upendra Shetty, President, Bunts Sangha at event organized by Bunts Hotel Owners Association, Bengaluru

President, Office Bearers and MC Members of Karnataka Pradesh Hotel & Restaurants Association (KPHRA), Bengaluru felicitated Sri Sudhakar S. Shetty, President, FKCCI during their Managing Committee Meeting

Felicitation of President by Sri B. Shantilal, Past President and Office Bearers of Karnataka Flour Mill Association on the occasion of their 40th AGM

Sri Andanur Muppanna, MC Member felicitated Sri Sudhakar S. Shetty, President at Davanagere

50 | OCTOBER 2018

PHOTO FEATURE

Sri K.G. Subbarama Setty, Past President, FKCCI inaugurated the Sir M V Awardees Wall of Fame at Sir MV Auditorium, FKCCI and hailed President, Sri Sudhakar Shetty for this historic and memorable initiative that will preserve the memory of all the Sir MV Awardees for posterity. The Sir MV Awardees Wall of Fame will be like a “walk through history� of FKCCI's remarkable efforts to recognize and honour distinguished achievers in their respective fields, he said.

OB, Past Presidents and MC Members of FKCCI felicitating Sri N.S. Srinivasa Murthy, Past President, FKCCI, for his donation to the Hall of Sir M V Auditorium, FKCCI

A delegation from FKCCI led by the President and comprising Sri Rajpurohit, Chairman, Association Coordination Committee and Sri B.L. Shankarappa, Chairman, National Festival Committee called on Dr. M.R. Ravi, IAS, Commissioner, Department of Handlooms & Textiles after he had just assumed charge and held brief discussions about the major programmes being conducted

by FKCCI and also invited the Commissioner for an interaction with Members of FKCCI which was readily accepted by him.

President felicitated by Sri S.A. Ravindranath, Former Minister of Horticulture & MLA, Davanagere and Office Bearers of DavanagereChitradurga District Bunts Sangha, on the occasion of Annual Day Programme of Bunts Sangha at Davanagere

51 | OCTOBER 2018

Seminar on NSIC Schemes for Entrepreneurs jointly convened by Ramanagar Chamber of Commerce & Industry and FKCCI

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IN THE LIMELIGHT

01-09-2018

04-09-2018

05-09-2018

07-09-2018

53 | OCTOBER 2018

IN THE LIMELIGHT

10-09-2018

20-09-2018

15-09-2018

16-09-2018

21-09-2018

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54 | OCTOBER 2018

20th

56

October 18, 2018

Permitted on October 20, 2018