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ANNUAL REPORT 2011 -12


ANNUAL REPORT 2011 -12

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President’s Report

inclusive, sustainable, clean and green metropolis. The objective of SCF is to assist and promote a business case for sustainable development and evolve a congenial policy for an action oriented environment. Anchoring the SCF, the Chamber works closely with like-minded organizations such as Madras University, Athena Infonomics, Anna University, SUSTAIN, UN-Habitat, British Deputy High Commission and US agencies, amongst others. Several events have been organized under this forum since its launch. A study on mapping the green practices of 50 different industries is in the pipeline. It is a matter of historical record that the Chamber was instrumental in setting up the Chennai Port. However, the port has been beset with a number of problems in recent years and runs the risk of losing its position of pre-eminence. It is feared that newer ports such as Krishnapatnam in neighbouring Andhra Pradesh and Hambantota in Sri Lanka may pose a threat to Chennai port. It is time to reinvent Chennai port.

Dear Members I am pleased to place before you the 176th Annual Report of The Madras Chamber of Commerce & Industry. As you all know, 2011-12 was a momentous year for the Chamber, marking the completion of 175 years of service to trade and industry, in this part of the country. We are indeed fortunate to have been part of this slice of history, especially when we realise that there are very few institutions in the world that have existed for 175 years! This is indeed a great milestone in the history of the Chamber and we do owe a debt of gratitude to all the supporters of the Chamber - past and present - who have worked tirelessly to make this possible. The Chamber undertook several new initiatives as part of the 175th year celebrations. The monthly breakfast meeting series, ‘Food For Thought’, addressed a number of topical issues including Right to Education, Nuclear Power, Land Acquisition and FDI in Retail. Eminent panellists and active participation by our members have ensured that these monthly meetings are now a regular fixture on the Chamber’s calendar. A Coffee Table Book “Championing Enterprise – 175 years of The Madras Chamber of Commerce & Industry” authored by the noted historian V. Sriram was released by His Excellency Dr K Rosaiah, Governor of Tamilnadu, on the occasion of the 175th Chamber Day. The book, which chronicles the history and heritage of the Chamber and its contribution to the development of trade and industry in the region, has won great appreciation and received good reviews from The Hindu and Business Line. ‘Championing Enterprise’ is certainly a collector’s item and a jewel in our crown. The Chamber made a humble beginning with its flagship initiative, the Skill Development Centre, offering training programmes for Fitters and Basic Computer Skills programmes. The Chamber has also developed a number of modules in soft skills, both in English and Tamil, which could be offered to graduates and non- graduates alike, to improve their employability. Tailor made programmes are also available for our member companies on various subjects. Skill development is very high on both the National and State agenda and we as a responsible and credible trade body must contribute our mite to the broader effort. Our first foundation course on Logistics was organized for the MBA students of MOP Vaishnav College for Women and 59 students enrolled for the course. The Chamber is working on taking this course to other colleges and industries as well, during the current year.

The Chamber commissioned a study on Tamil Nadu Ports which was released by Hon’ble Mr G K Vasan, Minister for Shipping, Govt of India, at a major Seminar on Development of Ports in Tamilnadu. During this Seminar, the Chamber also highlighted to the Minister that the Chamber had long been represented on the Board of Trustees of Chennai Port which was, for reasons unknown, discontinued in the year 2000. I am glad to report that, at the intervention of the Minister, the Chamber has once again been inducted on the reconstituted Board of Trustees of Chennai Port. We had several visiting delegations during the year, notably the Parliamentary delegation from Western Australia, the Port and Maritime sector delegation from the US and the Minister of State for Foreign Affairs, UK. As members are aware, the Chamber had acquired land in Koppur Village, near Tiruvallur, a few years ago. It is proposed to set up the MCCI Centre for Vocational Training and Skill Development on this property and the preliminary work like levelling the land and marking of boundaries has been taken up, as a prelude to commencing construction on the site. The Chamber is actively seeking benevolent sponsors and members’ support for setting up the facility. Overall, it was an exciting and rewarding year, marked by a series of events, through the year and a number of new initiatives being launched. The Chamber Day, marking the conclusion of the 175th year celebrations, was certainly the high point. Presided over by Dr Rosaiah, Governor of Tamil Nadu, it was an evening of great dignity. It was as much an occasion for nostalgia, as it was to look ahead and it also afforded us the opportunity to honour our Past Presidents and Secretaries, to whom the Chamber owes so much. On a personal note, the last two years have been greatly fulfilling and it was a rare privilege and honour for me to preside over this great institution as it went past another major milestone in its illustrious history. In my own humble way, I have striven to contribute what little I could to both safeguard and enhance the reputation of this hoary institution. Finally, I place on record my great appreciation and sincere thanks to all my colleagues on the General Committee and Expert Committees, for their unstinted support and counsel, all the members for their continuing support to the Chamber, the media for its generous coverage of the Chamber’s activities, the Secretary General and the entire team in the Chamber secretariat, for their sterling contribution in making this a very special and eventful year. Best wishes T T Srinivasaraghavan President

The Chamber launched a Sustainable Chennai Forum (SCF) on the occasion of World Habitat Day in November 2011, with the vision to be a leading advocate on sustainable development and make Chennai an 3

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OUR MISSION

◌ It is our Mission to proactively influence public policy and practice on issues which impact economy, trade, commerce and industry as also social processes such as education and health, infrastructure and environment.

◌ Reliability, timeliness, innovation and work ethic of high order is our offer to support and serve our members.

VALUES AND BELIEFS We

◌ ◌ ◌ ◌

will function with sincerity, dedication and commitment will provide the best quality service to our members will empower employees to fulfill our objectives will maintain a working atmosphere conducive to building trust and developing team work will be alive to competition and constantly upgrade our services to be a leader will act as a responsible law abiding Chamber and will make effective contribution to the society will jointly work with members for improving continuously the quality of work life

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General Committee 2011-12

President: Mr T T Srinivasaraghavan Managing Director Sundaram Finance Ltd.

Vice-President:

Mr T Shivaraman Managing Director & CEO Shriram EPC Ltd. Members:

Mr A R Subramanian Chief Financial Officer & Company Secretary Schwing Stetter India Pvt. Ltd. Mr Vijay Chordia Director Stonecolour Exim Private Limited Mr V K Vijayaraghavan Vice-President – Finance Auro Mira Energy Company Pvt. Ltd.

Mr R Anand Partner, Ernst & Young Pvt. Ltd.

Mr M V Ananthakrishna Executive Director M K Raju Consultants Private Ltd.

Mr G S Anil Kumar Director – Finance Jumbo Bag Ltd.

Mr R Arjun Durai Managing Director San Media Ltd.

Mr Gautam Venkataramani Executive Director – Corporate Affairs India Pistons Ltd.

Mr K V V Giri Managing Director Vaishnavi Freight Logistics (P) Ltd.

Mr S Gopal Managing Director Chemplast Sanmar Ltd.

Mr Ishwar Achanta Managing Director Viking Shipping (Chennai) Pvt. Ltd.

Mr S G Prabhakharan Chairman, XS Real Properties Pvt. Ltd. & Director, Lakshmi Vilas Bank Ltd.

Mr Joseph Eugene Uthaman Director I Sense Technologies P. Ltd.

Mr R Raghuttama Rao Managing Director ICRA Management Consulting Services Limited

Mr V Murali Senior Partner Victor Grace & Co.

Mr V Ranganathan Partner – Tax Advisory Services Ernst & Young Pvt. Ltd.

Dr K V Rajendran Advisor Neophyll Agrisciences Pvt. Ltd.

Mr G Srinivasan Chairman & Managing Director United India Insurance Co. Ltd.

Mr G V Raman Executive Chairman Shriram Group of Companies Ms. Rupa Gurunath Director,The India Cements Ltd. 5

Dr. Vinod Surana CEO & Partner Surana & Surana International Attorneys Mr R Vittal Raj Partner, Kumar & Raj Ex-officio:

Mr Srinivasan K Swamy Chairman & Managing Director R K Swamy BBDO Pvt. Ltd. Co-opted:

Mr D P Devnath Executive Director Eurocon Tiles Dr R Mahadevan Group Technology Director India Pistons Ltd. Dr K Nirmala Prasad Principal, MOP Vaishnav College for Women & Syndicate Member, University of Madras

Mr N Vittal Former Central Vigilance Commissioner

ANNUAL REPORT 2011 -12


PROGRAMMES AT A GLANCE (April 2011 - March 2012)

Food For Thought

5

Video Discussions

11

Seminars/Workshops/Conferences

15

Round Table Discussions/Discussion meetings

8

Training Programmes

2

Visit of Delegations

2

Meetings with Consular Corps

2

Press Meets

1

General Meetings

13

General Committee Meetings

13

Expert Committee meetings

20

Representations made to Government

10

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Programmes APRIL 2011 – MARCH 2012 6th April 2011:

28th May 2011:

Video Discussion on “Kaizen : Just in Time Technologies”

FFT on “Will Right to Education Become a Reality”?

Resource Expert: Mr Jayabalan, IRCA Certified Lead Assessor for QMS and Certified Black Belt with Six Sigma. 8th April 2011:

FFT on “Making Democracy Meaningful” Resource Experts: Mr N Gopalaswami and Mr T S Krishnamurthy, former Chief Election Commissioners, Mr R Desikan, Founder, The Catalyst Trust, Mr Barun Mitra, Managing Trustee, Liberty Institute, New Delhi. 23rd April 2011:

Seminar on Core Sector Development in South India: Key Speakers: Mr N C Jha, Chairman & Managing Director, Coal India Ltd. Mr Rajeev Ranjan, IAS., Principal Secretary, Industries Department, GoTN, Mr M Ravindranath, General Manager – Technical Services, ESSAR Steel Ltd. Visakhapatnam, Mr Shanker Gopalkrishnan, President, Madras Consultancy Group, Mr V G Manoharan, Chief Engineer, Planning & Resource Centre, TANGEDGO, Chennai, Dr D Sekar, General Manager – Engineering & RD, BHEL, Ranipet, Mr A Ramakrishna, Chairman, International Infrastructure Consultants Pvt. Ltd., Chennai, Mr Surender Ranade, Executive Director – Operations, JSW Steel Ltd., Bellary, Mr D Sivagurunathan, President – Mfg. The India Cements Ltd. Mr V Padmanabhan, Project Head, Skill Development, IL&FS Cluster Development Initiative Ltd. and Mr Nagaraj Garla, Regional Head – Mid Corporate, IDBI Bank, Chennai. 23rd April 2011:

MCCI & MMA Video Discussion on”Deming’s Roadmap for Change – Commitment to Quality” Resource Expert: Mr G Ramasubramanian, Trainer. 11th May 2011:

Press Meet to Highlight the woes of Exim Trade in view of failure of EDI Version 1.5 Resource Experts: Mr J Krishnan, Chairman, Expert Committee on Logistics, MCCI, Mr G Raghu Sankar, Member, Expert Committee on Logistics, MCCI, Mr P S Krishnan, President, Chennai Custom House Agents’ Association, Mr V Upendran, President, National Association of Container Freight Stations, Mr G Viswanathan, Past Chairman of Chennai & Ennore Port Steamer Agents’ Association. 25th May 2011:

MCCI & MMA Video Discussion on “The Miracle Man”: Resource Expert: Mr Murali, Trainer and Psychological Counsellor.

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Resource Experts: Dr Vasanthi Devi, Former Vice-Chancellor, Manonmanian Sundaranar University, Ms Aruna Rathnam, Education Specialist, UNICEF Field Office for Kerala & Tamil Nadu, Dr C Satish, Senior Principal, RMK Group of Schools and Mr David A Brock, Vice-Consul, US Consulate General, Chennai. 4th June 2011:

Seminar on Revised Schedule VI and XBRL Resource Experts: Mr N Ramanathan, Managing Director, Ponni Sugars (Erode) Ltd. and Mr S A Murali Prasad, Director, SAM Consultancy Services Ltd. 16th June 2011:

Investment & Business Opportunities in the Piemonte Region (Italy) – Meeting with Italian Delegation Resource Experts: Dr Augusto Di Giacinto, Italian Trade Commissioner, Ms. Stefanis Noveli, Mr Gianfranco Di Salvo, Mr Giuseppe Barile, Drector General, Webasto SPA, Mr Fabrizio Righetti, CEO of Magneti Mareli UM Electronic Systems Pvt. Ltd. 17th June 2011:

Round Table Discussion on Fiscal Policies for Low Carbon Investment Resource Experts: Mr P M Belliappa, IAS., (Retd.), Dr Philip Douglas, First Secretary, Climate Finance and Technologies within the Joint British Commission – DFID India Climate Change and Energy Unit, Ms. Rachel Brass, First Secretary, Climate Change and Energy in the Cross Governmental Unit of FCO, DEC and DFID of the British Government. 23rd June 2011:

175th Annual General Meeting Chief Guest: Dr Subir Gokarn, Deputy Governor, Reserve Bank of India. 29th June 2011:

MCCI & MMA Video Discussion on “Middle Manager as Innovator” Resource Expert: Ms. Jerina Jahaffar, Consultant and Corporate Trainer. 1st July 2011:

Seminar on “Securing US Green Card”

Resource Expert: Mr Gregory Wing, Co-Founder of the Green Card Fund and President & CEO of Bedford International. ANNUAL REPORT 2011 -12


27th July 2011:

Business Opportunities between India and Switzerland

MCCI & MMA Video Discussion on “Between you and Me”. Resource Expert: Ms. Shripriya Srinivasan, Corporate Trainer.

Resource Experts: Mr Luc Prem Jalais, GGBa Director in India and Mr Thomas Bohn, Deputy Director, GGB, Switzerland.

6th August 2011:

9th September 2011:

FFT on Land Acquisition Policies – What Works and What does not Resource Expert: Mr Ravindra Sannareddy, CEO, Sri City Pvt. Ltd., Dr M Vijayabaskar, Asst. Professor, Madras Institute of Development Studies and Ms. Auxilia Peter, Advocate.

Seminar on Leveraging Information Technology for Business Excellence-Shop Floor to Top Floor Key Speakers: Dr T S Sridhar, IAS., Principal Secretary, MSME Department, GoTN and Mr V Ramaswamy, Global Head – TCS ION. 10th September 2011:

19th & 20th August 2011:

All India Workshop on Indirect Tax Laws Chief Guests & Key speakers: Hon’ble Justice Mr V Ramasubramanian, Madras High Court, Hon’ble Minister Mr S S Agri Krishnamoorthy, Minister for Commercial Taxes & Registration, Mr V S Krishnan, IRS., Additional Director General, Directorate General of CE Intelligence, Mr K Vaitheeswaran, Chairman, Indirect Taxes Committee and Mr P R Subramaniyan,Co-Chairman, VAT Committee. 20th August 2011:

Inauguration of the Foundation Course on Exim Procedures: Resource Experts: Mr J Krishnan, Chairman and Mr U Udayabhaskar Reddy, Co-Chairman, Expert Committee on Logistics, MCCI. 25th August 2011:

Launch of United Nations’ Globally renowned Responsible Production Framework Resource Experts: Mr Srinivasa Narayanan, Managing Director, ASSIST and Mr D Jayakumar, Speaker of the Tamil Nadu Legislative Assembly 29th August 2011:

MCCI & MMA Video Discussion on “One for All – The Meerkat Way” Resource Expert: Mr K Parasuraman, Motivational Speaker and Management Training Consultant. 3rd September 2011:

Discussion on “Global Economic Crisis – Consequences and Remedies” Resource Experts: Mr S Kalyanaraman, Formerly of ADB, Mr K P Geethakrishnan, IAS, (Retd.) and Mr Uppili, Financial Analyst. 5th September 2011:

ANNUAL REPORT 2011 -12

Seminar on Cost Audit & Cost Record Rules under the Companies Act 1956 Key Speakers: Mr B B Goyal, Advisor (Cost), Cost Audit Branch, Ministry of Corporate Affairs, Government of India and Mr S A Murali Prasad, Cost and Chartered Accountant. 12th September 2011:

Talk on “Reset or Recession” Resource Expert: Mr Robert F Bruner, Dean and Charles C Abbott Professor of Business Administration at the Darden Graduate School of Business Administration, Virginia University, USA. 15th September 2011:

Interaction meeting with representatives of VMDA, Germany Resource Experts: Mr Ulrich Ackermann, Managing Director, Foreign Trade Office of VDMA, Germany and Mr Rajesh Nath, Managing Director, VDMA, India. 29th September 2011:

Chamber Day & 175th Year Celebrations Chief Guest & Key Speakers: His Excellency, Dr K Rosaiah, Governor of Tamil Nadu, Mr S Sandilya, Chairman, Eicher Group and Mr V Sriram, Historian. 18th October 2011:

Meeting with Ambassador for Belgium Resource Experts: H.E. Mr Pierre Vaesen, Ambassador for Belgium, H.E.Mr Karl Van Den Bossche, Consul General for Belgium, Mr Jayant Nadigar, Trade Commissioner, Bangalore, Mrs Fruithof, Future Trade Commissioner for Chennai and Mr Raj Khalid, India Representative of Port Antwerp. 20th October 2011:

MCCI & MMA Video Discussion “That’s not my Problem” Resource Expert: Ms. Sandhya Sankar,Corporate Trainer.

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9th November 2011

17th December 2011:

World Habitat Day – Seminar on Cities & Climate Change & Launching of Sustainable Chennai Forum

Seminar on Development of Ports in Tamil Nadu & Release of Port Study

Resource Experts: Dr V Madha Suresh, Reader, Department of Geography, University of Madras, Mr G Dattatri, SUSTAIN, Col. Dr. G Thiruvasagam, ViceChancellor, University of Madras, Ms. Santha Sheela Nair, IAS., (Retd.), Vice-Chairman, State Planning Commission, Mr Mike Nithavrianakis, British Deputy High Commissioner, Mr Paul Prakop, Vice-Consul, US Consulate General, Mr P M Belliappa, IAS.(Retd.), Mr Raja Chidambaram, Director, URs Productively, Dr R Sakthivadivel, Emeritus Professor of Anna University, Mr N Ramadoss, Executive Secretary, Industrial Waste Management Association, Dr K P Subramanian, Retd. Professor, Division of Transportation Engineering, Anna University, Dr S Janakarajan, Professor, Madras Institute of Development Studies, Mr M Devasahayam, IAS., (Retd.), Mr Sankara Subramanian, Asst. Vice-President, Operations,Chemplast Sanmar Ltd., Mr Velan, Executive Director & CEO, Tril Info Park Ltd. Ramanujan IT SEZ, Mr Varun, Student of Madras University, Department of Geography, and Mr S Velayudan Pillai, Resident Welfare Association. ‘

Chief Guest & Key Speakers: Shri G K Vasan, Hon’ble Minister for Shipping, Government of India, Mr J Krishnan, Chairman, Logistics Committee, MCCI, Mr G Shanker, President, Madras Consultancy Group, Mr S N Srikanth, Senior Partner, Hauer Associates, Mr Atulya Misra, IAS., Chairman, Chennai Port Trust, Mr S Velumani, Chairman & Managing Director, Ennore Port, Mr K Mohan Verghese Chungat, IAS., Vice-Chairman & CEO, Tamil Nadu Martime Board, Mr M L N Acharyulu, Executive Director, Karaikal Port, Mr V Ramanan, Brakes India Ltd., Mr G Raghu Sankar, International Clearing & Shipping Agency India Pvt. Ltd., Mr K Vaitheeswaran, Advocate & Tax Consultant, Mr Raja, Secretary, Trailer Owners Association, Mr Arun, Container Freight Station, Capt. Suresh N Amirapu, Managing Director, Portman India Pvt. Ltd.,Mr D Jayakumar, Hon’ble Speaker, Tamil Nadu Legislative Assembly, Capt. Madan Mohan, CITPL and Mr Naveen Ramani, Shipping Line Agent.

17th November 2011

Key Speakers: Mr D V Giri, Southern Regional Director, Assocham, Mr D C Joshi, Chief, NRDC Business Plan, Development and Design Engineering, Mr S Srinivasan, Assistant General Manager, SIDBI.

Talk on “Universities and Business: Working together to develop Skills and create Wealth” Resource Expert: Prof. Sir Peter Gregson, Vice-Chancellor, Queen’s University, Belfast, UK.

22nd December 2011:

Seminar Cum B2B on “Bridging the Gap in Bio-techHealthcare and Agri-Biotech Commercialisation”

23rd – 25th January 2012: 26th November 2011

Discussion on Use of Technology in Statutory Compliance Resource Experts : Mr Goverdhan Jayaram and Mr Prasantha Kumar Sahu, IPG Tech Legal, New Delhi.

Municipalika 2012 – Making Cities Work – 10th International Conference & Exhibition on Good Urban Governance for Safe, Healthy, Green Smart Cities

Resource Experts: Mr V Rajesh, Retail Consultant and Trainer and Mr Shekar Swamy, Chief Executive Officer, R K Swamy Hansa Group.

Chief Guests & Key Speakers: Mr K P Munusamy, Hon’ble Minister for Municipal Administration and Rural Development, GoTN., Mr R Vaithilingam, Hon’ble Minister for Housing and Urban Development, Government of Tamil Nadu, Ms. K Saraswathi, Secretary General, MCCI, Dr M Ramachandran, IAS., (Retd.) Former Secretary, Urban Development, Government of India and Mr PWC Davidar, IAS., Commissioner, Corporation of Chennai.

29th November 2011:

25th January 2012:

MCCI & MMA Video Discussion on “Marketing : Off & Running”

MCCI & MMA Video Discussion on “The Point of Impact”

26th November 2011:

Food For Thought on “Allowing FDI in Multi Brand Retail”.

Resource Expert: Mr Mukund, Corporate Trainer. 1st December 2011:

Meeting with Czech Ambassador Speakers: H.E. Mr Miloslav Stasek, Ambassador for Czech Republic to India and H.E. Mr Vaclav Bartuska, Ambassador at Large for Energy Security, Czech Republic. 9

Resource Expert: Mr S K Raja, Trainer and Facilitator. 28th January 2012:

FFT on “Nuclear Power – To be or Not To Be”

Resource Experts: Mr K Balu, former Director, Nuclear Recycle Group, BARC, Mr Nityanand Jayaraman, Writer and Researcher on Environmental and Human Rights Track Record of Corporations and Mr N S Venkataraman, Secretary, Chemical Industries Association.

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31st January 2012:

14th February 2012:

Seminar on Exim Trade Facilitation

Programme on India-UK Partnership

Key Speakers: Mr Anil Bamba, ITS, Zonal JDGFT, Mr R Muthuraj, ITS. Joint DGFT, Mr K Vaitheeswaran, Advocate & Tax Consultant, Mr K Sivarajan, Director, BMR Associates, Mr J Krishnan, Chairman, Expert Committee on Logistics, MCCI, Mr U Udayabhaskar Reddy, Co-Chairman, Expert Committee on Logistics, MCCI, Mr M Manickam, Former Asst. Commissioner, NACEAN.

Chief Guest: Mr Jeremy Browne, MP, Minister of State for Foreign Affairs, UK and Mr Mike NIthavrianakis, British Deputy High Commissioner.

4th February 2012:

Resource Experts: Mr Narayanan Ramaswamy, Partner, Management Consulting, KPMG Services, Mr Narendra Shukla, Vice-President & Director, Cordys Asia and Mr Rommel Fernando, General Manager, IT, Mahindra & Mahindra.

Programme on Bridging Skill Gap for Improving Employability of Technical Workforce Resource Experts: Mr Ravi Kannan, Consultant and Mr D K Pradhan, Chief Operating Officer, MCCI Skill Development Centre.

16th February 2012:

Programme on Business Process Management – The True Differentiator

21st February 2012: 6th February 2012:

Indo-US Partnership in Port & Maritime Sector

Talk on Corporate Social Responsibility : Its Importance for Industry and Education

Chief Guest & Key Speakers:: Mr G K Vasan, Hon’ble Minister for Shipping, Government of India , Mr Francisco Sanchez, Under Secretary of Commerce for International Trade, US Government, Mr Atulya Misra, IAS., Chairman, Chennai Port Trust. Mr S Velumani, Chairman & Managing Director, Ennore Port Ltd., Mr Paul Antony, IAS., Chairman, Cochin Port Trust, Mr G V L Satya Kumar, Deputy Chairman, Visakhapatnam Port Trust and Commodore S Shekhar, Regional Director, National Maritime Foundation, Chennai Chapter.

Key Speakers: Mr David Willey, Deputy Chancellor, Bournemouth University, UK Mr P M Belliappa, Mentor, ABS, Chennai.

Viceand

7th February 2012:

India Corporate & Investor Meet Chief Guests: His Excellency Dr K Rosaiah, Governor of Tamil Nadu and Dr M Veerappa Moily, Hon’ble Minister for Corporate Affairs, Government of India. 7th – 9th February 2012:

Water Expo 2012 Chief Guest: Mr D Jayakumar, Hon’ble Speaker of the Tamil Nadu Legislative Assembly.

28th February 2012:

Discussion Meeting on Tamil Nadu VAT Act Chief Guest & Resource Experts: Mr Sunil Paliwal, IAS., Secretary, Commercial Taxes & Registration Department, Government of Tamil Nadu, Mr P R Sudhakar, Brakes India Ltd. and Mr P R Subramaniyan, Larsen & Toubro Ltd., (ECC Division). 28th February 2012:

10th February 2012:

MCCI & MMA Video Discussion on “Can You Help Me”

Programme on Vodafone Path breaking case – Policy vs. Jurisprudence

Resource Expert: Mr M Alagiri, Facilitator.

Resource Experts: Mr Sriram Seshadri, Chairman, Expert Committee on Direct Taxes, MCCI and Mr N Venkataraman, Senior Advocate, Supreme Court.

2nd March 2012:

Seminar on Transfer Pricing

Resource Expert: Mr Saba Rama Rathnam, Trainer and Mentor.

Chief Guest & Resource Experts: Mr Suresh Kumar, Joint Commissioner – Transfer Pricing, Mr R Sethuraman, Senior VicePresident – Finance & Corporate Affairs, Hyundai Motor India Ltd., Mr Hardev Singh, Executive Director, BSR & Co. and Mr Aravind Srivatsan, Partner, BSR & Co.

14th February 2012:

2nd March 2012:

11th February 2012:

Training Programme on Team Building

Meeting with visiting Western Australian Parliamentary Delegation Key Speaker: Hon’ble Grant Woodhams, MLA, Member for Moore and Speaker of the Legislative Assesmbly of Western Australia, National Party of Australia and Members of the Delegation. ANNUAL REPORT 2011 -12

Discussion on Indian Economy Resource Experts: Mr M R Venkatesh, Chairman, Expert Committee on Economic Affairs, MCCI, Mr R Raghuttama Rao, Managing Director, ICRA Management Consulting Services Ltd., Mr T C A Srinivasa Raghavan, Senior Associate Editor, The Hindu 10


Business Line and Mr C R Rajan, Former President (Strategy), Murugappa Group. 17th March 2012:

Workshop on Post Union Budget Resource Experts: Mr K Vaitheeswaran, Advocate & Tax Consultant, Mr Sriram Seshadri, Partner, BMR Associates Private Ltd. and Mr M R Venkatesh, Policy Analyst. 20th March 2012:

National Conference on Potential & Strategies for Public Private Partnerships in the Urban Water Sector Chief Guest & Key Speakers: Mr Suresh Prabhakar Prabhu, Member of Parliament and former Chairman, Task Force for Interlinking of Rivers, Dr S Narayan, IAS., (Retd)., President of Athena Infonomics & former Finance Secretary, Government of India, Mr Mike Nithavrianakis, British Deputy High Commissioner, Mr S Krishnan, IAS., Secretary to Government, Finance Department (Expenditure), GoTN, Dr K P Krishnan, Secretary, Economic Advisory Council to the Prime Minister, Prof. Ashwin Mahalingam, Advisor, PPP Governance, Athena Infonomics and Asst. Professor, IIT, Madras, Mr R Raghuttama Rao, Managing Director, ICRA Management Consulting Services Ltd., Prof. V Srinivas Chary, Director, Centre for Energy, Environment, Urban Governance and Infrastructure Development, Administrative Staff College of India, Mr K Rajivan, IAS., (Retd.), former Managing Director & CEO, Tamil Nadu Urban Infrastructure Financial Services Ltd., Mr Sameer Vyas, IAS., (Retd.), Managing Director, IL&FS Water Ltd., Mr Anand Madhavan, Head- Urban and Infrastructure Finance, ICRA Management Consulting Services Ltd., Mr Gourishankar Ghosh, IAS. (Retd.), Former Executive Director, Water Supply and Sanitation Collaborative Council, WHO, Geneva, Mr Vibhu Nayar, IAS. Project Director, Irrigated Agriculture Modernisation &

Water Bodies Restoration and Management and Ex-Officio Special Secretary, PWD, Government of Tamil Nadu. Mr R Ragunathan, Chairman, Indian Water Works Association, Chennai Centre, Mr Madhu Krishnamoorthy, Head – Business Development, Water Health India Pvt. Ltd. A.P, Ms. Aparna Rajkumar, Member, Siruthuli, Coimbatore, Ms. Thangam Sankaranarayanan, IAS., (Retd.), Chairman, New Tirupur Area Development Corporation Ltd., Mr M Raman, IAS., Former Chairman & Managing Director, Ennore Port Ltd. Mr K A Joseph, Regional Director, Veolia Water India Pvt. Ltd., Mr L V Keshav, Director, Ion Exchange Enviro Farms Ltd. (A Division of Ion Exchange (India) Ltd.)and Mr Pranab Kumar Majumdar, General Manager, VA Tech Wabag Ltd. 24th March 2012:

Seminar on Propelling Growth for SMEs through IT Key Speakers: Mr Clynton Almeida, Chairman, Expert Committee on IT/ITES, MCCI, Mr S Sivagnanam, Director, MSME Development Institute, Mr Malli J Sivakumar, Co-Chairman, IT/ITES Committee, MCCI, Mr R Sandeep, AGM, Business Process Management, Cholamandalam MS Finance Ltd., Mr C Harinath, Chief Information Officer, TVS Logistics Services Ltd., Mr G N Sivaramakrishna, Woodpecker, Mr H Mahalingam, President & Group CTO, Equitas Micro Finance India Pvt. Ltd., Mr R Vittal Raj, Partner, Kumar & Raj, Ms Jamuna Swamy, Chief Information Security Officer, Hexaware Technologies Ltd., Mr K Shyaam Sunder, Chief Knowledge Officer, Ramco Systems Ltd., Mr Bala J Raman, Co-Founder & President, Congruent Solutions, Mr Divya Sethi, General Manager & HeadPSS, Airtel and Ms. Jayapriya, Southern Agro Engines Pvt. Ltd. 27th March 2012:

MCCI & MMA Video Discussion on Team Work: How Synergy Succeeds Resource Expert: Mr Roshy Sebastian, Trainer.

Witness to history. The Chamber’s logos over the years.

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ANNUAL REPORT 2011 -12


INDIAN ECONOMY Economic Performance 2011-12 The Economic Survey 2011-12 (Survey), tabled in Parliament by the Finance Minister on 15 March 2012 is a review of the performance of the economy, giving indications of prospects for the coming year. Global issues have become important in the backdrop of growing linkages between the Indian and global economy. Keeping this in mind, the Chief Economic Advisor expanded the size and scope of the Survey by incorporating chapters on ‘India and the global economy’ and ‘Sustainable development and climate change’. There is no denying that the year 2011-12 was a challenging year for the economy. India is not insulated from global economic activities which was clearly visible on some of the economic parameters. However, despite the economic and financial troubles in key developed economies, India has remained a front runner in any cross-country comparison. The Survey predicts that with inflation moderating, easing of monetary policy and reforms picking up, the economy would grow at 7.6% in financial year (FY) 2013 and 8.6% in FY 2014.

Overview of the Indian economy With the Gross Domestic Product (GDP) growth slowing to 6.9% in the current fiscal (FY 2011-12) from 8.4% in the previous two fiscals, India has witnessed a slowdown due to weak industrial activity coupled with a contraction in investments. Factors such as persistent and high inflation, monetary tightening, expansion of trade deficits, weakening of the Rupee, negative global developments and domestic political uncertainty have also contributed to it. Sector-wise, agriculture and allied activities after growing at a healthy rate of 7.0% last year grew by only 2.5% during the year. Despite good monsoons and a healthy crop, the low growth could be attributable to the base effect. As a result of high inflation and interest rates, industrial growth slowed drastically to a mere 3.9% as compared to 7.6% last year. Restriction on iron ore production, weak coal output and decline in natural gas production during the year led to a contraction in the mining and quarrying industry. The services sector continued to be the growth driver expanding by 9.4% through the year as compared to 9.3% last year. The high rates of inflation continued from last year and stayed close to and even beyond 10% for the first half of the current fiscal. The wholesale price index (average from April 2011 to January 2012) was as high as 9.1%. The main drivers were food inflation (primary articles) and global commodities which spiraled onto money wages and other expenses resulting in increased prices of manufactured goods. To curtail the spiraling inflation, the Reserve Bank of India tightened the monetary policy by increasing interest rates leading to deceleration of growth. Further, depreciation of the currency in the ANNUAL REPORT 2011 -12

latter half of the year further fueled the import prices of necessary items. A striking point in this year’s Survey is the trade deficit, which stood at US$ 85.8 billion in the first half of the year. A steep rise in the trade deficit was witnessed after an over 40% increase in the merchandise exports in the first half of the year as compared to the first half of last year. This huge deficit was primarily on account of increase in international commodity prices such as crude, gold and silver and depreciation of the Rupee. After high fiscal deficits in the previous two years, the Budget for 2011-12 proposed fiscal consolidation and estimated a fiscal deficit target of 4.6% of GDP. The fiscal deficit has ballooned on account of various factors. Slow growth of the industry led to lower tax collections for the government. For the first nine months of the year, gross tax revenue grew at a rate which was 5 percentage points lower than the same period in the previous year. Further, due to spiraling of fuel and fertiliser subsidy, the expenditures of the government swelled. High interest rates led to higher interest payment on external debt and higher borrowing costs. Total expenditures in the first nine months of the year were 13.9% as against the budgeted 4.9% for the entire year. The foreign exchange reserves fluctuated throughout the year. In the first half of the year, reserves increased by US$ 6.7 billion and reached an all time high of US$ 322 billion (August 2011). However, due to the Rupee depreciation in the latter half of the year, the RBI intervened to stem the slide which led to a decline in the foreign exchange reserves from US$ 311.5 billion (September 2011) to US$ 292.8 billion (January 2012). The currency depreciated 12.4% against the US$ on a monthto-month basis and reached at an all time low of Rs. 54.23 in December 2011. The capital inflows in terms of foreign direct investment rose by US$ 12.3 billion during the first half of the current fiscal as compared to US$ 7 billion in the corresponding period of last year. On the other hand, the portfolio investments (FII’s, ADRs and GDRs) have been extremely volatile throughout the year. They decreased to a mere US$ 1.3 billion in the first half of 2011-12 as compared to US$ 23.8 billion in the first half of last year. On the expenditure side, the private final consumption expenditure in real terms did not change drastically owing to inherent inelasticity of private consumption and high inflation. Growth in final private consumption expenditure was 6.5% for the year as compared to 8.1% last year. Savings rate as a percentage of GDP declined from 33.8% (200912


10) to 32.3% (2010-11). The Survey suggests that the reduction was on account of reduced private savings in financial assets and somewhat by corporate saving reduction. Fixed investments as a percentage of GDP also declined to 30.4% (2010-11) as compared to 31.6% (2009-10). The savings investment gap of 2.8% of GDP reflects the need to finance the investment by foreign inflows.

The fiscal situation is expected to remain strained. On the revenue side, slow economic growth, weak industrial activity and decline in investment is likely to keep tax revenue subdued. A sluggish stock market also implies limited scope for raising funds through disinvestment. On the expenditure side the government faces two major roadblocks of fertiliser and oil subsidies. By not passing on the higher costs to

Key Indicators Data Categories Units

Financial year 2010-11

Financial Year Year 2011-12

GDP (current market prices)

Crore INR

7,674,148 QE

8,912,178 AE

Growth rate

%

8.4

6.9

Savings rate ^

% of GDP

32.3

31.6 E

Investment rate ^

% of GDP

35.1

35.2 E

Index of Industrial Production (growth)

%

8.2

3.6 a

Inflation (WPI) (52 week average)

% change

9.6

9.1 b

Inflation (CPI-IW) (average)

% change

10.4

8.4 b

Export Growth (US$)

% change

40.5

23.5 b

Import Growth (US $)

% change

28.2

29.4 b

Current Account Balance / GDP

%

(2.7)

(3.6)c

Source : Government of India Economic Survey 2011-12, ^ Prime Minister’s Economic Advisory Council Report QE : Quick estimates, AE: advanced estimates, a: April to December 2011 ; b: April 2011 to January 2012, c:April to September 2011.

Future expectations

consumers, the government faces major risk of higher core inflation.

Despite the low growth figure of 6.9%, India remains one of the fastest growing economies in the world as all major countries (including the emerging economies) are witnessing a significant slowdown. The global economic environment turned sharply adverse in the middle of the year owing to the turmoil in the euro-zone countries and questions about the growth prospects of other leading developed economies, reflected in sharp ratings downgrades of sovereign debt in most major advanced countries. While a slowing down of the Indian economy can be largely attributed to global factors, domestic factors also played an important role.

Keeping in view the economic trends of various parameters, inflation is expected to decline in the short term due to the base effect and the global stabilisation in commodity prices. As a result the RBI may opt for an expansionary monetary policy which could provide the necessary fillip to the economy. However, this is likely to be limited unless the investment climate issues such as infrastructure, boosting business sentiments, land acquisition and labour laws are addressed.

The Survey predicts the economy to grow by 7.6% and 8.6% in the next two years. It also predicts that the weakness in the economic activity might have bottomed out. The success in garnering private sector investment in infrastructure through the Public-Private Partnerships (PPPs) route during the Plan has laid a solid foundation for increased private-sector funding in coming years. PPPs are expected to augment resource availability as well as improve the efficiency of infrastructure service delivery.

13

Inability to implement some of the policy reforms such as allowing FDI in multi-brand retail, pension and insurance funds and lag in policy actions for coal and power have also dampened investor sentiments. The Indian economy was on the path to recovery after the 2008-09 crises, which was also reflected in the budget estimates last year. The global economic slowdown has impacted the recovery of Indian economy. As the Finance Minister suggests, India should take this as an opportunity to rethink, re-assess and make way for new ideas and policies. Source: Pricewaterhouse ANNUAL REPORT 2011 -12


Tamil Nadu Economy Tamil Nadu has been one of India’s most progressive States and is amongst the top three on several economic and social indicators. The total area of Tamil Nadu is 130,058 sq. km. Density of Tamil Nadu is 555 per sq km which is higher than the national average of 382 per sq km. In 2001, density of Tamil Nadu was 480 per sq km, while the nation’s average was 324 per sq km. Tamil Nadu which was ranked the fourth largest State in terms of its economic size has currently become the second largest State next only to Maharashrtra .It is one of the largest contributors to India’s GDP. Tamil Nadu’s gross State domestic product for the year 2011-2012 is 4.28 lakh crore and is estimated at US$ 97.970 Billion in current prices. Tamil Nadu, during the just concluded financial year of 2011-2012, recorded 9.39 per cent economic growth rate, the highest among Southern States. Over the years, Tamil Nadu has maintained the average economical growth of approximately 6–7%, which is well above the average for all India. Services contribute to 61% of the economic activity in the State, followed by manufacturing at 26 % and agriculture at 13%.

SECTOR Agriculture Industry Services GSDP

An analysis of the growth pattern reveals that the Services sector continues to dominate the economy. Segments such as financial services, real estate and hotels performed relatively well. Compared to 2010-2011, the secondary sector recovered marginally last year. The primary sector’s performance – 2.63 per cent – was the best in the last five years, though it did not touch the targeted mark of four per cent. As per details from Census 2011, Tamil Nadu has a population of 7.21 crore, an increase from the figure of 6.24 crore in 2001 census. Total population of Tamil Nadu as per 2011 census is 72,138,958. In 2001, total population was 62,405,679. The total population growth in this decade was 15.60 percent while in previous decade it was 11.19 percent. The population of Tamil Nadu formed 5.96 percent of India in 2011. In 2001, the figure was 6.07 percent. Tamil Nadu has the highest level of urbanization (49%) in India, accounting for 6% of India’s total population and 9.6% of the urban population. Literacy rate in Tamil Nadu has seen an upward trend and is 80.33 percent as per 2011 population census. Tamil Nadu boasts well-developed and top-notch industrial, social, and physical infrastructure.

PERFORMANCE OF TAMIL NADU’S ECONOMY DURING 11TH PLAN PERIOD (in %) 2007-2008 2008-2009 2009-2010 2010-2011 -4.63 -1.45 2.08 1.98 3.20 -0.72 8.70 6.78 9.32 10.17 10.09 14.55 5.91 5.77 8.96 11.30

2011-2012 2.63 7.12 11.22 9.39

GSDP – Gross State Domestic Product Note : Figures for 2011-2012 are provisional Source : The Hindu dated 13/6/ 2012

Performance of TN economy:

• Automobiles & Components 30 - 35%

(Tamil Nadu records 9.39 percent growth rate)

• Textiles 20 – 25%

Industrial Profile of TN: Tamil Nadu is one of the major manufacturing hubs in India and the largest in South India. Tamil Nadu produces a range of manufacturing products like automobiles and components, castings and forgings, pumps and motors, garments and textile products, leather products, chemicals and plastics, etc. Today, Tamil Nadu has a lion’s share in the country’s industrial output and has carved for itself, a pride of place in the industrial map of India. The sunrise industries like electronics, biotech and pharma, IT & ITES have also found their due place in the State. The share of Tamil Nadu as a percentage of the national production in these industries is as follows: ANNUAL REPORT 2011 -12

• Leather products 35 – 40% • Electronic Hardware 20 – 25% • Software & IT Enabled Services 15%

Some highlights of Key Sectors : Auto & Auto Components: The auto component sector in Tamil Nadu – home to several global auto majors such as Hyundai, Nissan, Ford and Ashok Leyland – has had a heady journey till date. Tamil Nadu contributes nearly 25 per cent of the overall auto component industry in the country, which clocked a turnover of $40 billion in 2010-11. The State has 14


over 107 auto parts companies with holistic capabilities to produce nearly the entire range of components – from engine parts, drive and transmission parts to suspension and braking parts, electricals, body and chassis parts. The chief players are the Rane Group, Sundram Fasteners, Sundaram Clayton and Wheels India from the TVS Group, Wabco, MM Forgings, Ucal and Hinduja Foundries. Tamil Nadu has seen major investments in the automobile industry over many decades manufacturing cars, railway coaches, battle-tanks, tractors, motorcycles, automobile spare parts and accessories, tyres and heavy vehicles. Major global automobile companies including BMW, Ford, Renault-Nissan, Caterpillar, Hyundai, Mitsubishi Motors and Michelin as well as local automobile majors like Ashok Leyland, Hindustan Motors, TVS Motors, IrizarTVS, Royal Enfield, MRF, Apollo Tyres, TAFE Tractors, and Daimler Chrysler AG Company also invested `4 billion for establishing new plants in Tamil Nadu. The rapid growth in both the auto and component sectors in Tamil Nadu, especially Chennai, which has earned itself the sobriquet ‘Detroit of Asia’, has been primarily due to availability of skilled manpower and a strong engineering sector. Tamil Nadu has a USD 10 billion auto component industry, making it the largest auto hub in the country. Software & Information Technology: Tamil Nadu has witnessed substantial growth in IT, ITES, BPO and IT Hardware manufacturing sectors. The number of Software Units in the State is also growing rapidly. The rapid rise in the number of national and international players that have chosen to establish their business establishments and manufacturing facilities as well as the expansion of the activities of the established firms in this State is a firm indication that Tamil Nadu has emerged as a preferred destination for domestic as well as foreign direct investment. Leaders in the Indian IT sector like Tata Consultancy Services (TCS), Infosys, Wipro, Satyam, HCL, Patni Computers, I-Flex, Polaris and Hexaware as well as a galaxy of international majors - Accenture, Verizon, Xansa, Office Tiger, Standard Chartered Bank, ABN Amro, Alcatel, Cognizant Technology have established their operations in Tamil Nadu. There are over 1,800 software and ITES exporters in the State, including over 210 fully owned subsidiaries of foreign companies. Software exports from the State of Tamil Nadu are stated to witness a growth of 17 per cent in 2011-12, by reporting around Rs 48,000 crore exports. About 49 per cent of Tamil Nadu’s IT exports constitute system and application software, while BPO (Business Process Outsourcing) constitutes only 12 per cent. This is a clear reflection of the climb-up in value-chain and maturity achieved by the IT industry in Tamil Nadu. The sector currently employs around 3,50,000 people, making it as the second largest IT cluster in the country. 15

Electronics manufacturing is a growing industry in Tamil Nadu. Chennai has emerged as an EMS Hub of India. Companies like Nokia, Flextronics, Motorola, Sony-Ericsson, Foxconn, Samsung, Cisco, and Dell have chosen Chennai as their South Asian manufacturing hub. Products manufactured include circuit boards and cellular phone handsets. Ericsson also has a Research and Development facility in Chennai. Big EPC companies have set up their Engineering centres which include Saipem India Projects Ltd, Technip, Foster Wheeler, Mott MacDonald and Petrofac. Austrian company “Austrian Energy and Environment” have also a design office here besides local giant ECC Larsen & Toubro. Sanmina-SCI is the latest company to invest in Tamil Nadu to create a state of the art manufacturing facility. Nokia Siemens Networks has decided to build a manufacturing plant for wireless network equipment in Tamil Nadu. In the communication sector also, Tamil Nadu is fast progressing. A record 75 per cent of the 1.85 crore households in the State has one form of telephone or the other, as against the national average of 63 per cent. In the 2001 census, the figure stood at 48 per cent. Agro and Food Processing: Tamil Nadu has rich resource endowment. The State with seven agro-climatic conditions and varied soil types is better placed for production of fruits, vegetables, spices, plantation crops, flowers, medicinal and aromatic plants. It is one of the largest producers of agro and horticulture products in India. The production of vegetables and fruits as of 2010 was 90.82 & 80.53 lakh MT respectively. Tamil Nadu is a major exporter of agro and processed food products. It exports Rs.1729 crores worth of Agro & Processed Foods and Rs.4,782 rrores worth of Marine products every year. The State is a world leader in agricultural production with a high yield per hectare of sugarcane, rice and groundnut. Tamil Nadu Government is promoting Agro Processing clusters in industrial parks and special economic zones keeping in view valueaddition of meat and seafood, poultry products, milk products etc. Chemicals and Petrochemicals: Tamil Nadu has 3 major chemical clusters namely in Chennai, Cuddalore and Tuticorin. It has manufacturing facilities for Fertilisers, Paints, Carbon Black, Pesticides, Pharmaceuticals, Organic and Inorganic chemicals etc., Leading Producers like Orchid, being the third largest manufacturer of sterile cephlosporin, Dadha Pharma, Malladi, Citadel, etc. have set up bases in Tamil Nadu . Petrochemical industry in Tamilnadu is in the threshold of rapid expansion. Manali, situated on the outskirts of Chennai, has emerged as a major petrochemical complex. Biotechnology: ANNUAL REPORT 2011 -12


Tamil Nadu is rich in bio-resources. The variety of geographical terrains in the State provides tremendous biodiversity rarely seen in any other single State. The forest, agricultural and plant resource base of the State are both large and diverse and represent great market opportunity for biotechnology products. There are more than 5,000 species of flowering plants and the forest cover in the State spreads over 22,500 sq.kms. The State also has one of the largest coastlines in the country which again presents opportunities for marine biotechnology. The State is also fortunate to have a pool of experts in various areas of biotechnology with experience in commercialisation of biotech products. Government has promoted TICEL Biopark in Taramani that provides common specialized infrastructure for Biotech industry. Leather: Tamil Nadu is one of the leading States for India’s leather exports and is home to almost 50% of tanneries in the country. Approximately 45% of leather and leather products exported from India are manufactured in Tamil Nadu. 90 per cent of the State production goes for export. The leather cluster of Ambur in Tamil Nadu is one of the important clusters in India. This town has also made a name for its well equipped and well infrastructured modern shoe factories where high standard world class foot wears are made and exported to many countries including the U.S.A, U.K, Italy, Germany, Portugal, Switzerland and Spain. Chennai ,Vaniambadi, Ranipet , Dindigul, Trichy are other prominent Leather belts in the State. Textiles: Textile Industry of Tamil Nadu is the forerunner in industrial development and in providing massive employment in the State. This industry is one of the traditionally well-developed industries in Tamil Nadu. Tamil Nadu has a strong production base and accounts for about 1/3 rd of Textiles production in the country. The net value addition in Textile industry in Tamil Nadu is about 37.5 per cent, the highest in the country. The Textile mills are concentrated in Coimbatore, Tirupur, Salem, Palladam, Karur and Erode. Tamil Nadu has around 3,50,000 power looms manufacturing cotton fabrics and accounts for about 30 per cent of India’s export of textiles products. The Erode district in Tamil Nadu is well known for marketing of textile products of handloom, powerloom and readymade garments. The cities of Coimbatore, Erode, Gobichettipalayam, Perundurai and Tirupur in Tamil Nadu are the largest garment exporters in India and sometimes referred to as the Textile valley of India. About 62% of India’s textile trading takes place only in the city of Erode and 56% of India’s total knitwear exports come from Tirupur. Infrastructure:

ANNUAL REPORT 2011 -12

1.

Ports: Tamil Nadu has numerous ports of which 3 major ports are located at Chennai, Ennore, and Tuticorin. A desalination plant, to be set up in Chennai, is supposed to enhance the existing availability.

2.

Railways: Tamil Nadu has a total railway track length of 6,693 km and there are 690 railway stations in the State. The system connects it with most major cities in India. Main rail junctions in the State include Chennai, Coimbatore, Erode, Madurai, Salem, Tiruchirapalli and Tirunelveli. Chennai has a well-established Suburban Railway network and is in the process of developing a metro.

3. Airways:Tamil Nadu has the third largest airport in India. The city of Tiruchirappalli hosts an international airport. 7 international airlines run 28 exclusive cargo flights every week, and an EDI facility is provided for the clearance of customs. 4. Roads:The State of Tamil Nadu consists of a wide network of roads that link it to major urban centers, rural habitations and agricultural markets. Tamil Nadu is one of the terminuses for the Golden Quadrilateral project. The total road length of Tamil Nadu is 167,000 km. Energy: Installed capacity in Tamil Nadu increased from around 13,000 MW at the end of the 10th Plan to around 14,700 MW in 2010-11, representing an increase of around 12%. The current power demand of the State is 11,500-12,500 MW but the total availability of power from the generating units in Tamil Nadu and from the Central pool put together is only 8,500 MW. Tamil Nadu which was once a power surplus State has acute power shortages now. However, measures are taken with a view to overcome the current situation. With the Kudankulam nuclear power project in place, the situation is expected to improve shortly. There is a special drive to augment the non-conventional energy source too. Currently the installed capacity for Non-conventional energy is as follows: • Wind : 6696.61 MW • Solar : 10.00 MW • Bio-Mass Co-generation : 610.00 MW • Bio-Mass Power : 161.15 MW • Small Hydro : 90.05 MW • Waste to Energy : 4.25 MW Total : 7572.06 MW Tamil Nadu stands No.1 in the country and No.5 in the world with more than 6696 MW of installed Wind mills, which forms around 41% of national installed capacity of wind energy. The State is also focussing on Solar Power and proposes a new policy on solar power to generate 3,000 MW by 2015-16. 16


Some facts on Tamil Nadu: •

Per capita income (at current prices) is Rs. 73,278 (US$ 1628) in 2010-11 .

Agriculture and allied activities provide subsistence to around 40% of Tamil Nadu’s population and contribute to about 13% of the GSDP.

The share of manufacturing sector to the GSDP is around 17 %

Tertiary Sector with multitude of service activities, including Financial services , tourism, IT and ITES contributes 61% of GSDP

Tamil Nadu has a strong Micro, Small and Medium Enterprises (MSME) base with nearly 7 lakh registered units; the investment in SMEs is estimated at Rs. 32,000 crore, providing employment to more than 50 lakh people.

Tamil Nadu ranks third in the country in attracting domestic tourists and second in attracting foreign tourists. An estimated 10% of foreign tourists to India arrive through the Chennai airport.

Tamil Nadu contributes approximately 3% of India’s food grain

produce, 7% of vegetable produce,12% of fruit produce and 24% of flower production. •

Tamil Nadu is ranked first among the States in terms of the number of factories and the number of industrial workers. It is ranked third in terms of investment in fixed capital, value of industrial output and the net value addition.

Tamil Nadu has an excellent port logistics with 4 major modern sea-ports apart from 20 minor ports.

TN has an annual turn out of skilled workforce of 2,26,000 engineering graduates and 1,71,600 trained polytechnic students offering immense scope for the establishment of knowledge based industries and services.

Tamil Nadu is the 3rd largest producer of Cement in the country, next to Andhra Pradesh and Rajasthan, with an annual installed capacity of 32.27 million tons.

Vision 2023 : The Government of Tamil Nadu with the support of Asian Development Bank has prepared and recently released Tamil Nadu Vision document. This Document speaks of 10 objectives to be achieved in the next 11 years.

TEN VISION THEMES: Vision 2023 Tamil Nadu identifies ten themes for the State as follows: 1. Tamil Nadu will be amongst India’s most economically prosperous States by 2023, achieving a six-fold growth in per capita income (in real terms) over the next 11 years to be on par with the Upper Middle Income countries globally. 2. Tamil Nadu will exhibit a highly inclusive growth pattern – it will largely be a poverty free State with opportunities for gainful and productive employment for all those who seek it, and will provide care for the disadvantaged, vulnerable and the destitute in the State. 3. Tamil Nadu will be India’s leading State in social development and will have the highest Human Development Index (HDI) amongst all Indian States. 4. Tamil Nadu will provide the best infrastructure services in India in terms of universal access to Housing, Water and Sanitation, Energy, Transportation, Irrigation, Connectivity, Healthcare and Education. 5. Tamil Nadu will be one of the top three preferred investment destinations in Asia and the most preferred in

17

India with a reputation for efficiency and competitiveness. 6. Tamil Nadu will be known as the innovation hub and knowledge capital of India, on the strength of world class institutions in various fields and the best human talent. 7. Tamil Nadu will ensure Peace, Security and Prosperity for all citizens and business, enabling free movement and exchange of ideas, people and trade with other Indian States and rest of the world. 8. Tamil Nadu will preserve and care for its ecology and heritage. 9. Tamil Nadu will actively address the causes of vulnerability of the State and its people due to uncertainties arising from natural causes, economic downturns and other man-made reasons and mitigate the adverse effects. 10. Tamil Nadu will nurture a culture of responsive and transparent Governance that ensures progress, security and equal opportunity to all stakeholders.

ANNUAL REPORT 2011 -12


As per this Document , it is proposed to invest Rs.15,00,000 crores in the following Sectors :

Sector

Investment Requirement

Rs.Crore

Energy

450,000

Transport

370,000

Industrial and Commercial

160,000

Urban Infrastructure

275,000

Agriculture

40,000

Human development (Health & Education)

30,000

Sub Total

13,25,000

General and Social Infrastructure projects

100,000

Capital improvements to existing projects

75,000

Sub-total

175,000

Grand Total

15,00,000

The Tamilnadu Vision 2023 document envisages to take Tamilnadu to No.1 position in the country in terms of economic and social development. Given the potential the State has, it is possible to achieve this once the implementation is on the right track. FACTS FROM HISTORY The Madras Port

The GPO

The first proposal emphasising the need for a harbour

When construction of GPO faced hurdles for want

was mooted by the Chamber and in March 1875,

of rersources,the Chamber’s efforts facilitated the

work of Madras Port commenced after 7 years of

resumption of work.

consideration by Her Majesty’s Government.

ANNUAL REPORT 2011 -12

18


GENERAL COMMITTEE

conduct of the programmes.

The Committee held 13 meetings during the year under review. Following are the highlights of the discussions held:

Effective 1st August 2011, Mr. D K Pradhan was appointed as the COO of the Centre.

Skill Development Initiative:

To create an awareness amongst member companies about the skill development initiative of the Chamber, and to discuss about the customized curriculum for industries, a half day programme titled “Workshop on Bridging Skill Gap for Technical Work Force” was organized on 4th February. Senior HR executives of leading companies and placement officers from Educational Institutions participated .

During the year, the Committee’s deliberations mainly centred around the progress on the Skill Development Initiative of the Chamber. The Secretary General along with the representative of Avalon Consulting had met many of the member companies and also select institutions in this field, including NTTF Bangalore, to seek their support and the initial response has been very encouraging. While they lauded the Chamber’s efforts in this direction, they also offered different options as to how best they can collaborate with the Chamber. Some of them had also assured that they would send candidates for training while some had expressed willingness to donate some machines which are old but in good working order. A basic project report with estimated cost and financial projections was prepared. A core committee on Skill Development to take the initiative forward was formed with Dr R Mahadevan of India Pistons Ltd., as the Chairman. With effect from 1st August 2011, space for running the Centre was taken up on rent in Chembarambakkam. Work tables, drilling machines and other required infrastructure facilities were deevloped at the premises. The fitter course was started effective 21st November. There was demand for Basic computer courses and hence this was started during December 2011.* The President had donated computers for the Centre and the VicePresident had donated the required furniture for the Centre. The Committee recorded its appreciation and gratefulness for their gesture. Pamphlets and hand outs were prepared both in English and Tamil for wide distribution to the local community to inform them about the

(*Two students were trained in Basic Fitter Course and were awarded certificates. They have since been placed in companies in Chembarambakkam and about a dozen students are undergoing the Basic Computer Course).

Discussion on Port Issues and the Study on Ports : The persistent issues concerning the port and the problems faced by member industries who are in exim business, constantly figured in many of the Committee meetings and discussed at greater length. The Committee felt that any plans for the ports should be looked at 50 years ahead. With more and more capacities getting added, the Chennai Port is getting choked. The Chamber raised serious concerns about the erratic congestion and trade recovery charges charged by the container operators which were adversely affecting the competitiveness of our exporters. It was felt that in the next 5-10 years, there is a need to double the number of existing ports considering the economic growth and the development that are taking place. The Logistics Committee had suggested that the Chamber should bring out a study on Tamil Nadu Ports with special emphasis on Chennai Port. It was suggested that a brief analysis of select ports in India and abroad should also be made in order to understand and

General Committee meeting in progress left : at Sundaram Finance Board Room and right : MCCI Conference Room 19

ANNUAL REPORT 2011 -12


compare the current status of TN ports. The Committee felt that since the Chamber had done outstanding work for the development of port in the 18th and 19th century, the Chamber should take up this study to highlight not only the contribution made by the Chamber for the establishment and development of the port, but also bringing to the fore the problems faced by the trade currently. The Committee felt that the study was timely and Madras Consultancy Group (MCG) was entrusted with the preparation of the study report. They were informed of the scope of the study which was to cover not only Chennai port but other major ports in Tamil Nadu so that best practices can be learnt . The Study report, on completion, was released by the Hon’ble Minister for Shipping in a Seminar organized in December 2011, and deliberated with the participation of various stakeholders.

Code of Governance for Committee Members: A Code of Governance for becoming a member of the Committee was introduced and the same was adopted at the Annual General Meeting held in June 2011.

Sustainable Chennai Initiative: A Sustainable Chennai Forum (SCF) was launched on the occasion of World Habitat Day on 9th November 2011. The objective is to develop and demonstrate the business and industry’s contribution on sustainable development solutions and share leading edge practices among members. There were interesting discussions in several Committee meetings on this initiative and various suggestions emerged regarding the activities to be taken up under this forum.

The Sustainable Chennai Forum would work closely with like minded organizations like Madras University, Athena Infonomics, Anna University, Citizens Alliance for Sustainable Living – SUSTAIN, UN-Habitat, British Deputy High Commission and US agencies and others in the sector. A number of activities like training and engaging students to conduct eco assessments in college campuses, documenting green initiatives in industries, undertake studies and facilitate debates concerning sustainability, provide expert guidance on projects to ensure sustainability, set up pilot projects and promote green practices among industries, etc., are being planned as a part of this initiative.

Power situation and the proposed increase in power tariff: The other important discussion notes in Committee meets were on the power situation in TN and particularly its impact on industries and commerce. While the Committee endorsed the need for revision of power tariff and the increase in rates considering the fact that Tamilnadu was charging still the lowest in terms of cost of power, It was unanimously felt that Government should be insisted on quality and uninterrupted power supply. The Chamber participated in the Public hearing on this subject and voiced its views. The Chamber’s suggestions on proposed power tariff were sent to TNERC.

Other Discussions: The Committee also discussed other administrative matters like service tax, status of subscriptions, membership, Union Budget/ State Budget, Audited Accounts of the Chamber, etc.

Formation of New State Government (May 2011) - Wish list from MCCI In consultation with the members of the Committee, the following wish list was sent to the press which received due publicity. · Corruption free and transparent governance system · Promoting Brand Tamilnadu leveraging on the high standards achieved by the industry in various sectors · Improve power generation, distribution and electricity sector reforms · Road infrastructure · Port connectivity, especially the EMRIP project which needs to be actively facilitated by the Government · Develop airport cargo processing facilities · Decongestion of Chennai which needs urgent attention · Water – measures to recharge ground water · Land –develop a policy and procedure for land acquisition for industries without injuring the interests of agriculture · SMEs- develop a series of clusters · Education – attract world class institutions and develop centres of excellence · Health and sanitation and affordable housing to receive special attention · Implementation of GST at the earliest

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Highlights

23rd June 2011

175th Annual General Meeting Business Session The 175th Annual General Meeting of the Chamber was held on 23rd June 2011 at Sheraton Park Hotel and Towers. At the Business Session, Mr T T Srinivasaraghavan, Managing Director of Sundaram Finance Ltd., was re-elected as the President while Mr T Shivaraman, Managing Director & CEO of Shriram EPC Ltd. was re-elected as Vice-President for the year 2011-12.

Public Session The Chief Guest for the Public Session was Dr Subir Gokarn, Deputy Governor, Reserve Bank of India. The theme of his address was “Economic Reforms for Sustainable Growth�. Addressing he said food, human capital, infrastructure and financial sector development are critical areas for reforms to achieve sustainable growth. The solution to the persistent demand-supply imbalance for food is to increase supply rapidly. Production of relevant items needs to be increased by increasing productivity.

l to r : K Saraswathi, T T Srinivasaraghavan and T Shivaraman

has slowed the pace of investment in infrastructure leading to a persistence of the gap. The impact of inadequate supply of power and transport infrastructure among other things, is quite significant on manufacturing activity. Speaking about financial sector he said there have clearly been massive changes in the financial sector which have completely changed the entire nature of intermediation, the range of products and services available and the intensity of competition.

T T Srinivasaraghavan welcoming Dr Subir Gokarn

On human capital he said India is the second most populous country in the world and will become the most populous country in the world in a couple of decades. It is also one of the youngest and will remain so for next decade to come. On infrastructure the rapid growth has raised demand for infrastructure services far in excess of available capacity. Meanwhile a combination of policy, regulatory and financial factors 21

T T Srinivasaraghavan, President, MCCI delivering the welcome address

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Dr Subir Gokarn addressing.

Representatives of the press with Dr. Subir Gokarn

A view of the audience

T T Srinivasaraghavan presenting a memento to Dr. Subir Gokarn. Looking on is T Shivaraman

Message May I extend my heartiest congratulations to the Madras Chamber of Commerce and Industry on your 175th year celebrations. As one of the oldest Chambers in the country, MCCI has done commendable work in socioeconomic and developmental field. The Chamber has played a critical role in promoting industry in the region and has been instrumental in making your State a favourable destination for global investments. I am also happy to note that MCCI is taking initiatives towards inclusive growth. I wish the Chamber all success and look forward to our continued efforts to serve the Nation and the industry. Dilip Modi President

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29th September 2011

Chamber Day and 175th year Celebrations

29th September is a special day for the Chamber for it was on this day that the Chamber was founded in 1836. It was all the more special this year, since the Chamber was celebrating the completion of 175 years of service to trade and industry. A full page advertorial was brought out in The Hindu on that day with messages from President, MCCI, Assocham President, Chairman, Chennai Port Trust and Chief Postmaster General, Tamil Nadu Circle. His Excellency the Governor of Tamilnadu Dr K Rosaiah was the Chief Guest and Mr S Sandilya, Chairman, Eicher Group was the Guest of Honour.

T.T. Srinivasaraghavan, President, welcoming the Governor with a bouquet of flowers.

Welcoming the gathering, Mr T T Srinivasaraghavan, President said that it is indeed a historic and momentous occasion as we commemorate 175 years of service to trade and industry. We have traversed a long and sometimes arduous road but through it all, we have remained committed to the fundamental values and objectives of the Chamber….. He said since the launch of the 175th year celebrations in September 2010, several new initiatives were flagged off. The flagship initiative of the Chamber in its 175th year is the establishment of a Vocational Training and Skill Development Centre. Mr S Sandilya, Chairman, Eicher Group felt that in the name of development, we have not done anything to maintain the environment and we have a looming crisis for the future. It is time to take corrective steps. He said drinking water shortage is going to be a major issue. He expressed his happiness at the innovations happening in the area of renewable energy, green buildings, etc.

Address by Mr T T Srinivasaraghavan, President (extracts) The 175th year celebrations were launched on 29th September last year, following which several new initiatives were flagged off. The “Food for Thought” series, a monthly forum on wide ranging issues of topical interest, which we commenced in September 2010, has evoked great interest and drawn wide appreciation from members. These discussions have served to bring into sharper focus the burning issues of the day and helped the Chamber reach out to a larger audience……. The flagship initiative of the Chamber in its 175th year is the establishment of a Skill Development Centre. It is a well accepted fact that one of the major problems faced by industry today is the nonavailability of manpower. As the debate on unemployment versus employability continued, the stark reality is that there is a crying need for formally trained manpower, to keep our factories running. It is in this context that

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our Chamber has embarked on an ambitious project to set up a Skill Development Centre….. Going back to history, the Chamber has been instrumental in the setting up of the Chennai Port. Sadly the port is today beset with several problems and has increasingly become a bottleneck for exporters and importers alike…. An interesting and special task taken up during the year was the commissioning of a Coffee Table Book which is to be released at the conclusion of our 175th year celebrations. The book traces the history and heritage of the Chamber and its significant contributions to the development of trade and industry in the region….. With a long term vision for the Chamber as well as for the economy, we took the theme for the 175th year as Sustainable Development and many of our activities have now woven around this……..

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H.E. Dr. K. Rosaiah presenting a memento to C D Gopinath (Chairman, MCCI - 1976)

Mr V Sriram, the historian and author of Coffee Table Book “Championing Enterprise – The 175 Years of the Madras Chamber of commerce & Industry” made a presentation on documenting the 175 years of the Madras Chamber. He said the book dealt at length with the formation and evolution of the Chamber, the role played by it in the infrastructure development of the State, particularly the Port, railways, roadways, post and telegraph among others. It was because of the Port that the city grew and it never looked back. The Governor released the Coffee Table Book and the first copy was received by Mr Srinivasan K Swamy, Immediate past President of the Chamber. He also released the Directory of Members and unveiled the plaque for the MCCI Skill Development Centre.

Governor of Tamil Nadu releasing the Directory of Members 2011 S. Sandilya receiving the first copy.

He said that it is time we disseminated knowledge on environment, cleaner technology etc., to the younger generation. We should encourage citizen participation and teach our children the consequences of corruption.

A veiw of the audience.

Past Presidents and Past Secretaries of the Chamber were honoured and mementoes were presented to them, which were handed over by the Govenor. Addressing the gathering, His Excellency Dr K Rosaiah said crossing a milestone of 175 years for any organization or an Association is a remarkable one. The MCCI deserves commendation for

The plaque

A view of the past Presidents who attended.

growing and adapting to the times and for its farsightedness. He congratulated the present and past office bears and members for their contribution to the growth of MCCI to the State and the society.

Dr.K.Rosaiah, Governor of Tamil Nadu unveiling the Foundation Stone of MCCI Skill Development Centre with remote

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He said the Coffee Table Book reveals the impeccable journey of MCCI. The history of the Chamber is inter-woven with the history of the industry and commerce and the economic development of the State. He congratulated the author Mr V Sriram and all those who were involved in bringing out this book.Commending the MCCI’s efforts on the establishment of Vocational Training and Skill Development Centre, he said the Chamber’s role and responsibility should be manifold and in tune with the State’s progress. At the end of the grand celebrations a cultural programme – brief flute 24


concert – was organised and the event concluded with cocktails and dinner.

Dr. K. Rosaiah releasing the Coffee Table Book. l to r: V. Sriram, TT Srinivasaraghavan and Srinivasan K Swamy

Dr. K. Rosaiah handing over the first copy of the Coffee Table Book to Srinivsan K Swamy

Classical Flute Concert by Tiruvarur S.Swaminathan accompanied by M.A.Sundareswaran (Violin) and Tiruvidaimarudur S.Sankaran (Mridangam)

The Chamber always had the patronage of State Governors:Down Memory Lane Group Photo of Presidents and Secretaries - Past and Present Standing l to r: N. Venkataramani, Srinivasan K Swamy, TT Srinivasaraghavan, A. Sankarakrishnan, T. Shivaraman Sitting l to r: K. Saraswathi, R. Subramanian, N. Srinivasan, M.K. Kumar, C.D. Gopinath, M.V. Murugappan, (A. Krishnamoorthy) and C.S. Krishnaswami

l In 1886 - Lord Connemara presided over the Golden jubilee l Lord Erskine was present at the Centenary of the Chamber in 1936 l H E Mr S L Khurana addressed the 150th year celebrations in 1986 l H.E. Dr K Rosaiah, the present Governor presided over the 175th year celebrations in 2011

23rd April 2011

Seminar on Core Sector Development in South India Though the core sectors namely crude oil, petroleum refinery products, coal, electricity, cement and finished steel registered better performance during the period April 2010-February 2011, it was felt there were specific issues faced by these sectors and supportive policy measures were needed. It was also imperative to know the future opportunities for these sectors in a domestic and global economic environment. With this background, this seminar was organized. Mr Rajeev Ranjan, IAS., Principal Secretary, Industries Department, Government of Tamilnadu was the Chief Guest. Mr N C Jha, Chairman and Managing Director, Coal India Ltd., delivered the 25

T T Srinivasaraghavan welcoming the participants.

keynote address and also released the book on Belt Conveyor Technology authored by Thejo Engineering, one of the member ANNUAL REPORT 2011 -12


N C Jha addressing

companies of the Chamber. The Technical Sessions were addressed by eminent speakers namely Mr Shanker Gopalkrishnan, President, Madras Consultancy Group, Mr V G Manoharan, Chief Engineer, Planning & Resource Centre, TANGEDCO, Chennai, Dr D Sekar, GM –Engineering & RD, BHEL, Ranipet, Mr A. Ramakrishna, Chairman, International Infrastructure Consultants Pvt Ltd., Mr Surender Ranade, Executive Director – Operations, JSW Steel Ltd., Bellary, Mr D Sivagurunathan, President- Mfg, The India Cements Ltd., Mr V Padmanabhan, Project Head-Skill Development, IL&FS Cluster Development Initiative Ltd. and Mr Nagaraj Garla, Regional Head – mid-Corporate, IDBI Bank, Chennai.

19th & 20th August 2011

All India Workshop on Indirect Tax Laws An annual flagship event of the Chamber, this two day workshop attracts good participation from member companies. At the inaugural session, Hon’ble Justice Mr V Ramasubramanian of the Madras High Court was the Chief Guest.

Addressing he said MCCI is older than the Madras High Court – while MCCI celebrates its 175th year, Madras High Court is into its 150th year and as MCCI has retained its name “Madras”, the High Court too has retained its name. He further said that while Custom and Excise played a crucial role in the 19th century, Sales Tax and its new avatar namely Value Added Tax have gained importance in the 20th century and the 21st century is limping towards the Goods and Service Tax. He further said the GST which will replace the State VAT, Central Excise, Service Tax and a few other indirect taxes is expected to be a broad based, single and comprehensive tax levied on goods and services. At the technical sessions that followed, the Chamber had the privilege of eminent advocates, taxation experts, and corporate executives, addressing the participants on a wide range of subjects.

Hon’ble Minister Agri S S Krishnamoorthy addressing.

At the valedictory session on the second day, Hon’ble Mr Agri S S Krishnamoorthy, Minister for Commercial Taxes & Registration, Government of Tamilnadu was the Chief Guest.

17th December 2011:

Seminar on Development of Ports in Tamilnadu & Release of Port Study Persistent issues concerning the port figured in the discussions at the meetings of the Logistics Committee and the Committee suggested that the Chamber should bring out a study on Tamilnadu with special emphasis on Chennai Port. Madras Consultancy Group were entrusted with the study and it was felt that a Seminar should be organized with the presence of the Hon’ble Minister for Shipping at which this study report should be released. Hence this Seminar was organized.

Inauguration: T T Srinivasaraghavan presenting a memento to Justice V Ramasubramanian. Standing with them are P R Subramaniyan (left) and K K Sekar (right)

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The Seminar was inaugurated by Hon’ble Minister for Shipping, Government of India, Mr G K Vasan. A galaxy of speakers representing policy makers to users took part in the event.In his welcome, the President highlighted the problems faced by the 26


Vice-Chairman and CEO, Tamilnadu Maritime Board and Mr M L N Acharyulu, Executive Director, Karaikal Port made presentations. The session was chaired by Mr S N Srikanth, Senior Partner, Hauer Associates. The Second Technical session was chaired by Mr J Krishnan, Chairman, Expert Committee on Logistics of the Chamber. The speakers were – Mr V Ramanan, Brakes India, Mr G Raghu Sankar, International Clearing & Shipping Agency, Capt Madhanmohan, CITPL, Mr Naveen Ramani, Shipping Line agent, Mr K Vaitheeswaran, Advocate & Tax Consultant, Mr Raja, Secretary, Trailer Owners Association, Mr Arun, CFS, and Capt Suresh N Amirapu, Portman India.

G. Shanker, President, Madras Consultancy Group presenting a snapshot of the study

Valediction

G.K. Vasan, Hon’ble Minister for Shipping delivering the inaugural address

G.K. Vasan releasing the Port Study Report and handing over the first copy to Atulya Misra, IAS

business community currently because of a mismatch of the growing requirements of trade and the absence of corresponding infrastructure developments at the port and also connectivity to the port. He placed a few points for the immediate and favourable consideration of the Minister.Mr G Shanker, President, Madras Consultancy Group who carried out the study on port sector on behalf of the Chamber presented a snapshot of the study. Later, the Minister released the study report and the first copy was handed over to Mr Atulya Misra, IAS., Chairman, Chennai Port Trust. At the First Technical Session on “Major Ports and Minor Ports – Policies & Progress”, Mr Atulya Misra, IAS., Chairman, ChPT, Mr S Velumani, CMD, Ennore Port, Mr Mohan Verghese Chungat, IAS.,

For the Valediction, the Hon’ble Speaker of the Tamilnadu Legislative Assembly, Mr. D Jayakumar, was the Chief Guest. Mr S N Srikanth presented a summary of the seminar proceedings. Mr Jayakumar said all the minor and intermediate ports in the State will be developed through PPP .

TT Srinivasaraghavan presenting a memento to D Jayakumar

Chennai Port Short Term suggestions F Build more entry and exit points at the zero gate F Widen the roads inside the port F Streamline the vehicular movement inside the port F Create more storage space inside the port especially

for bulk and break bulk cargo F Expedite the road strengthening work from Ennore to Chennai Port F Increase the number of rakes F Upgrade the number and handling capacity of the equipment in the port

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Long Term suggestions:

F Expedite EMRIP and Maduravoyal projects F Establish shuttle rail service from the port to an

off dock facility F Develop a dedicated railway line for freight F Facilitate coastal movement of cargo as an economic option to transfer goods within the country F Apply RFID system for the trailers to ensure smooth flow of traffic in the port F Simplify customs documentation process and introduce paperless regime

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21st February 2012:

Indo-US Partnership in Port and Maritime Sector A US Port Mission was in Chennai on 21st February and the Chamber in association with US Commercial Service, Chennai, organized a meeting. The delegation was led by Mr Francisco Sanchez, Under Secretary of Commerce for International Trade, US Government. Mr G K Vasan, Hon’ble Minister for Shipping, Government of India, (l): Atulya Misra, IAS, Chairman, ChPT and (r) S. Velumani, CMD, Ennore Port

are the major vehicles to promote exim trade between different nations across the globe. The keynote address was given by Mr Francisco Sanchez. He said he was leading the first ever ports and maritime trade mission to India with 12 US companies who produce some of the world’s best products and services in this field. G.K. Vasan in conversation with Francisco Sanchez

was the Chief Guest and delivered the inaugural address. He said for any development, particularly in the Port Sector, International collaborations and partnerships are absolutely essential as Ports

The Chamber had the privilege of the participation of the following who made presentations on their respective ports: 

Mr Atulya Misra, IAS., Chairman, Chennai Port Trust

Mr S Velumani, Chairman & Managing Director, Ennore Port Ltd.

Mr Paul Antony, IAS., Chairman, Cochin Port Trust

Mr G V L Satya Kumar, Deputy Chairman, Visakhapatnam Port Trust.

Commodore S Shekhar, Regional Director, National Maritime Foundation, Chennai Chapter.

14th February 2012:

The India-UK Economic Partnership – Address by Mr Jeremy Browne, MP, Minister of State for Foreign Affairs, UK: A view of the meeting – seated are Chairmen of some of the major ports in India and Delegation Members

On the occasion of the visit of Mr Jeremy Browne, MP, UK Minister of State for Foreign Affairs, the Madras Chamber and the British

T Shivaraman presenting a memento to G K Vasan

l to r: K Saraswathi, T Shivaraman, Jeremy Browne and Mike Nithavrianakis

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Giving a snap shot of UK’s presence in Chennai he said British Council’s Project English in Tamilnadu is one of the largest programmes anywhere in India. British Council’s Teaching Centre in Chennai has trained over 15,000 students and professionals. It offers 10 different types of English language courses to improve efficiency and productivity in the corporate sector.

17th March 2012:

Workshop on Post Union Budget 2012: T Shivaraman, Vice-President, MCCI, handing over the Coffee Table Book to Jeremy Browne, UK Minister of State for Foreign Affairs

The annual budget workshop was organized on 17th March, a day after the presentation of the Budget by the Finance Minister. Mr K Vaitheeswaran, Chairman of the Expert Committee on Indirect Taxes made a presentation in which he dealt with indirect tax issues.

Mike Nithavrianakis, British Dy. High Commissioner, Chennai addressing

T T Srinivasaraghavan delivering the welcome address

The direct tax issues were dealt with by Mr Sriram Seshadri, Chairman of the Expert Committee on Direct Taxes of the Chamber. Jeremy Browne addressing the gathering.

Deputy High Commission, Chennai, jointly organized a meeting. Thanking the Chamber for the opportunity given to him to address its members, Mr Jeremy Browne said it is a great honour to be here during which time he would like to make the case for an enhanced partnership between UK and India.

The workshop was also addressed by Mr M R Venkatesh, Chairman, Economic Affairs Committee of the Chamber.

K Vaitheeswaran making a presentation.

He expressed his happiness at the development that has taken place based on innovation, free-thinking and entrepreneurial spirit. These are attributes that India shares with the UK. He referred to India’s ambitious plan to train 500 million people by 2020 which is a significant challenge set by India.

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Sriram Seshadri addressing.

M R Venkatesh at the mike.

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SUSTAINABLE CHENNAI FORUM On the occasion of World Habitat Day, the Chamber launched a Sustainable Chennai Forum (SCF). The Sustainable Chennai Forum will assist and promote a business case for sustainable development. It will aim to develop and demonstrate business and industry contribution to sustainable development solutions and share leading edge practices among member companies.

Vision: To be a leading business advocate on sustainable development to make Chennai an inclusive, sustainable, clean and green metropolis in the global context.

Aim: To assist and promote a business case for sustainable development and evolve a congenial policy and action oriented environment for the sustainable development of the Chennai metropolitan region in collaboration with like-minded institutions.

The following programmes formed part of SCF:

9th November 2011

World Habitat Day – Seminar on Cities & Climate Change & Launching of Sustainable Chennai Forum: This programme was organized jointly with University of Madras and UN HABITAT. The occasion was World Habitat Day. Col.Dr

Forum (SCF) which would help evolve a congenial policy for the city’s development. Mr Mike Nithavrianakis, British Deputy High Commissioner and Mr Paul Prokop, Vice-Consul, US Consulate General were the Guests of Honour. The other organizations who partnered in this event were – British Deputy High Commission, Chennai, SUSTAIN,US Department of Energy, Brookhaven National Laboratory, Institute of Town Planners, Tamilnadu Regional Chapter, Athena Infonomics and Oikos Chennai Chapter.

A view of the audience.

G Thiruvasagam, Vice-Chancellor, University of Madras released the compendium on Cities and Climate Change and inaugurated the event. Mrs Santha Sheela Nair, IAS (Retd),Vice-Chairman, State Planning Commission, launched the Sustainable Chennai ANNUAL REPORT 2011 -12

Releasing of Compendium on Cities and Climate Change by Col. Dr.G.Thiruvasagam, Vice Chancellor of University of Madras. Along with him are Santha Sheela Nair, IAS (Retd.) and Mike Nithavrianakis. 30


17th November 2011

Talk on “Universities and Business: Working together to develop skills and create wealth”. A talk by Professor Sir Peter Gregson, Vice-Chancellor, Queen’s University, Belfast, UK was organized as part of the Sustainable Chennai Forum’s activities. Prof Gregson briefly highlighted the Belfast University’s role in promoting education and informed how the University provides good education modules and tie ups with industries. His presentation covered various methods of establishing collaboration between K Saraswathi, Secretary General, MCCI, making a presentation.

Prof. Sir Peter Gregson addressing

the Universities and Industries adopted by Belfast University. The University is focusing on Research and Development particularly for SME sector. He mentioned about the 100 scholarships that were awarded in the name of Dr Abdul Kalam which would strengthen the relationship between the TN State and the Foreign University.

23rd to 25th January 2012

Municipalika 2012 – Making Cities Work – 10th International Conference & Exhibition on Good Urban Governance for Safe, Healthy Green and Smart Cities: The Chamber participated in this event held at Chennai Trade Centre. The event was supported by British Deputy High Commission along with other organizations like UN Habitat and US Department of Energy, etc. Municipalika is India’s only event focusing on Urban Development and Municipal solutions. The event was organized with the full support and participation of Government of India, Ministries of Urban Development, Housing and Poverty Alleviation and New and Renewable Energy. Our Chamber was a co-organiser for this event.

A view of MCCI’s stall

The other subjects dealt with at the Conference related to – Progressive cities, working cities, virbrant cities-living heritage; safe and resilient cities; future cities; healthy cities; green cities; cities for the GenNext; Inclusive and Humane cities, affordable housing, smart cities, etc. The Chamber ‘s active participation in this event has widened our network .

7-9th February 2012

Water Expo 2012: MCCI was one of the supporters of this event held at the Chennai Trade Centre. Water Today’s Water Expo is South East Asia’s largest event on Waste Water and Waste water management.

MCCI had put up a stall at the expo and our recently launched initiative Sustainable Chennai Forum was projected using our participation in the exhibition. A presentation was made by Secretary General Mrs K.Saraswathi on Cities for the Gen Next – Sustainable Chennai and Sustainable Campuses. Visitors at MCCI Stall 31

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Mr D Jayakumar, Hon’ble Speaker of the Tamilnadu Legislative Assembly inaugurated the Expo. On behalf of the Sustainable Chennai Forum (SCF) of the Chamber, a stall was put up at the Expo which was visited by a large number of people.

20th March 2012

National Conference on Potential and Strategies for Public Private Partnerships in the Urban Water Sector: This Conference sought to explore the basis for developing PPPs as a long term solution to the complex infrastructure and service delivery needs of the country’s urban water systems. The event raised important questions on the relevance of PPPs to the urban water supply landscape and explored the potential and strategies for developing PPPs as a long term solution to providing clean and reliable water supply in urban systems. Athena Infonomics was the host for this Conference while the MCCI was the Industry Partner. The programme was sponsored by the British High Commission. Dr S Narayan, IAS (Retd) President of Athena Infonomics and

T T Srinivasaraghavan lighting the kuthuvilakku. Looking on are S.Krishnan & Mike Nithavrianakis

former Finance Secretary, Government of India, welcomed the gathering and explained the need for organizing this conference. Delivering a special address, Mr T T Srinivasaraghavan, President, MCCI said that water is the lifeline of humanity and yet we do everything we possibly can to destroy its sources or render it unfit for consumption. For many regions of the globe, the future will be characterized by less rainfall and increasing temperature, severely reducing the availability of water. Dr S Narayan, IAS (Retd.) addressing. Seated l to r: Deepa Karthykeyan(Athena), S Krishnan, IAS., Secretary, Finance Department, (Expenditure), GoTN, Suresh Prabhakar Prabhu, Member of Parliament & Former Chairman, Task Force for Interlinking of Rivers, T T Srinivasaraghavan, President, MCCI, Mike Nithavrianakis, Deputy High Commissioner, British Deputy High Commission and T Shivaraman, Vice-President, MCCI.

Suresh Prabhakar Prabhu delivering the inaugural address

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He said access to water is a basic human right and it is vital to recognize first the basic right of all human beings to have access to clean water and sanitation at an affordable price. Mr Mike Nithavrianakis, the British Deputy High Commissioner shared the British experience and said water and energy form the

S. Krishnan, IAS, Secretary, Finance (Expenditure), Govt. of Tamil Nadu, addressing 32


framework. Advocating a “value for money” approach in executing projects that involved tax payers money, Mr Krishnan said one of the fundamental steps in decision making for infrastructure was whether a project was worth its investment and then take a call on whether it justifies pure public PPP or pure public management. The next step involved is assessing the risk bearing capacity of the private sector partner in the PPP.

TT Srinivasaraghavan delivering a Special address

pillar of bilateral relations between India and the UK. The State Government will shortly formulate the institutional framework for the Tamilnadu Infrastructure Development Board, said Mr S Krishnan, IAS., Secretary to Government, Finance Department (Expenditure), Government of Tamilnadu. The Government had already constituted the Board and would in the next couple of months promulgate relevant laws for its governance

Delivering the inaugural address, Mr Suresh Prabhakar Prabhu, Member of Parliament and former Chairman, Task Force for Interlinking of Rivers said that public awareness has to be created on the necessity of viable models for delivering products and services to the public. There were four Technical Sessions on: - Policy framework and Governance - Pricing and Financial Sustainability - Community Participation and Social Mobilisation - PPP Implementation Issues These were handled by eminent moderators and key speakers.

A city once beautiful

(extracts from Championing Enterprise)

The Chamber may have been kept out of the Madras Corporation’s deliberations ever since 1958 but that did not prevent it from keeping a watchful eye over the development of city. From the late 1960s it began to complain regularly over the steady decline in public spaces and the rapid proliferation of slums.

The Chamber welcomed the development of Anna Nagar as a suburb of the city following the success of the International Trade Fair in 1968. It also lauded the efforts of the Government in cleaning up the Cooum river and noted with joy the development of boating jetties along with water body. But the project was never to reach culmination and since then, several attempts have been made to beautify the river, all to no avail.

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Programmes - Food For Thought 8th April 2011

Making Democracy Meaningful: Since elections were round the corner, the Chamber thought it fit to take up this topic for FFT. The main aim of the programme was to re-emphasise the importance of electoral processes and the power

l to r: Dr. Vasanthi Devi, T. Shivaraman and David A. Brock

l to r : T T Srinivasaraghavan, N Gopalaswami and R Desikan.

of democracy and also about the need to take informed decisions while selecting our representatives. The Liberty Institute, New Delhi, joined the Chamber in organising this event. The speakers were-- Mr N Gopalaswami, former CEC, Mr T S Krishnamurthy, former CEC, Mr R Desikan, Founder, The Catalyst Trust, Chennai and Mr Barun Mitra, Managing Trustee, Liberty Institute, New Delhi. Mr Barun Mitra gave a demo of the Liberty Institute’s website EmpoweringIndia.org which contained details of all the contestants across India, their assets, their educational background, the polling booths, etc. etc.

28th May 2012

Will Right to Education become a Reality: The Government, in April 2010, brought out a new law called Right to Education which aims to provide free and compulsory education to all children in the age group of 6-14 years. As a part of this law, there are obligations for the State Governments and local bodies to ensure that every child gets educated in the neighbourhood. The Act mandates that even the private educational institutions have to reserve 25% seats for children of weaker sections in their respective neighbourhoods. There is, however, no clear direction or clarity for implementation of this law. To know more on these aspects, this programme was ANNUAL REPORT 2011 -12

Aruna Rathnam addressing

organized. The speakers were - Dr Vasanthi Devi, former Vice-Chancellor, Manonmanian Sundaranar University, Ms Aruna Rathnam, Education Specialist, UNICEF Field Office for Kerala & Tamilnadu, Dr.C Satish, Senior Principal, RMK Group of Schools and Mr David A Brock, Vice-Consul , US Consulate General, Chennai. Dr K Nirmala Prasad, Principal, MOP Vaishnav College for Women, Chennai, also expressed her views on the subject.

6th August 2011

FFT on Land Acquisition Policies – What works and What does not? With the increasing pressures on and due to urbanization, rapid economic development, increasing infrastructure requirements, etc., especially in a fast growing economy like India, the acquisition of land by the industrial establishments and government has increased. India has a legislation which is three centuries old and this piece of legislation still governs. There are social dimensions to the 34


acquisition of land. To address the many issues relating to acquisition of land, the Chamber had invited Mr Ravindra Sannareddy, CEO, Sri City, Dr M Vijayabaskar, Asst. Professor at the Madras Institute of Development Studies and Ms Auxilia Peter, Advocate.

A view of the audience

Mr V Rajesh, Retail Consultant and Trainer and Mr Shekar Swamy, Chief Executive Officer, RK Swamy Hansa Group.

T T Srinivasaraghavan welcoming the gathering. Seated l to r: Auxilia Peter, Ravindra Sannareddy and Prof. M Vijayabaskar

Mr Ravindra Sannareddy described the Ten Commandments followed by Sri City in acquiring land. Prof M Vijayabaskar made a presentation on Land Acquisition for Public Purpose: Emerging Trends and Issues in India. Ms Auxilia Peter spoke on the new Draft Bill of the Centre on Land Acquisition and said there was no need to bother about the Bill as there is already Tamilnadu Land Acquisition Act for industrial purpose. Since land acquisition is in the concurrent list, the State need not follow the Central legislation.

26th November 2011

FFT on Allowing FDI in Multi Brand Retail: The Central Government was proposing to allow FDI in multi brand retail. However, the Indian retail industry had its own reservations on this. To discuss the pros and cons if FDI is allowed in multi brand retail, the Chamber organized this programme and the speakers were – Mr G Viswanathan, Senior General Manager, Vivek Ltd.,

While the speakers felt that FDI would bring in finance, technology and efficient supply chain management system, a fear was expressed that FDI will come in and displace existing traders though there is no doubt that it will generate employment but many will lose jobs too.

28th January 2012

FFT on Nuclear Power - To be or Not to be: Though there were many issues arising out of the Kudankulam Project, the Chamber was looking beyond Kudankulam and trying to understand what would be the future of nuclear power especially when India is driving the economic growth rate to a minimum of 9%. The speakers were:Mr K Balu, former Director, Nuclear Recycle Group, BARC; Mr Nityanand Jayaraman, Writer and Researcher on Environmental and Human Rights Track Record of Corporations and Mr N S Venkataraman, Secretary, Chemical Industries Association. Mr Balu felt nuclear energy has a role to play and every type of energy needs to be looked at in the current power scenario. As far as environmental impact is concerned, nuclear energy has the necessary technology to address the issue of environmental impact. Mr Nityanand felt that globally nuclear energy accidents have happened and each disaster is different and it has happened

l to r :K Saraswathi, G Viswanathan, T TSrinivasaraghavan, V Rajesh and Shekar Swamy

35

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T T Srinivasaraghavan, President, MCCI, delivering the welcome address. Seated l to r: K Balu, Nityanand Jayaraman and N S Venkataraman.

A view of the meeting.

because of poor quality design or human error. There have been loss of human lives but there is no track record of openness and truth.

if there is any problem. Without power, the cooling system can operate. In case there is radiation, there is a solution for that was well. He also added that though other alternate sources of energy like solar, wind, are preferable, yet since the gestation period is more and the cost of generation is also high, there is no immediate alternate other than nuclear power.

Mr Venkataraman dealt with two issues in his address namely (a) safety and (b) innovation. He said that the people expressed apprehensions about the nuclear power mainly because of the recent disaster at Fukushima. He pointed out that in Kudankulam, it has the updated technology wherein it has four generators and they will stop automatically,

By 2015, the global temperature will go up. India’s power requirement is 1,60,000 MW. We need to lift the poor economically (those below the poverty level). GDP growth cannot be increased without increasing power generation.

MCCI’s Food For Thought Programme takes up larger issues of topical nature which could involve the economy, civil society, businesses and the community as a whole, and provide a platform for open discussion and interaction.

ANNUAL REPORT 2011 -12

36


Expert Committees: The Expert Committees of the Chamber were reconstituted at the AGM of the Chamber held on 23rd June 2011. Members of these Committees, drawn from member companies, contributed significantly their experience and expertise. The President and Vice-President in consultation with the Chairmen and Co-Chairmen, evolved a workplan for each of the Expert Committees for the year. The following were nominated as Chairmen/Co-Chairmen of the Committees: Chairman­

Committee­

Co-Chairman­

Ms. Bhavani Balasubramanian Company Law/ Partner Corporate Matters Deloitte Haskins & Sells

Mr S Srinivasaraghavan Chief Financial Officer and Company Secretary Simpson & Co. Ltd.

Mr Sriram Seshadri Partner BMR Associates

Direct Taxes

Mr M R Venkatesh Partner GSV Associates

Economic Affairs

Mr P Krishnakumar Energy Managing Director Orient Green Power Co. Ltd.

Mr N Mani Vice-President Shriram Capital Ltd.

Mr R Barath Environment, Pollution Vice-President – Plant Engg. Prevention & Control Wheels India Ltd.

Mr N Ramadoss Executive Secretary Industrial Waste Management Association

Mrs Subhashri Sriram Financial Sector Executive Director Shriram City Union Finance Ltd.

Mr V Sriram Chief General Manager – Head – Banking & Corp. ICRA Management Consulting Services Ltd.

Mr S Ganguly HRD & CSR Vice-President & Head – HR Larsen & Toubro Ltd. (ECC Division)

Mr M Ramakrishnan Vice-President – HR & Admin. W S Industries (India) Ltd.

Mr K Vaitheeswaran Indirect Taxes Advocate & Tax Consultant K Vaitheeswaran & Co.

Mr K K Sekar Dy. General Manager – Indirect Taxes Ashok Leyland Ltd.

Mr S Kanappan Executive Vice-President & Head, Heavy Civil Infrastructure SBG Infra IC Larsen & Toubro Ltd.(ECC Division)

Industrial Development/ Infrastructure

Mr Clynton Almeida IT & ITES Chief Information Officer Redington (India) Ltd.

Mr Malli J SIvakumar Chief Executive Officer Sundaram Infotech Solutions Ltd.

Mr J Krishnan Logistics Partner S Natesa Iyer & Co.

Mr U Udayabhaskar Reddy Whole Time Director Sanco Trans Ltd.

Mr P R Sudhakar VAT Sr. General Manager – Indirect Taxes Brakes India Ltd.

Mr P R Subramaniyan Dy. General Manager – Corp. Indirect Taxes Larsen & Toubro Ltd. (ECC Division)

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Brief details of the activities of each Committee are given in here:

COMPANY LAW/CORPORATE MATTERS

- Green initiatives- corporates to send Annual Reports and other communications to shareholders in soft version

The Committee held five meetings during the year. At its first meeting, it discussed the recent notification issued by MCA on Revised Schedule VI. The Ministry of Corporate Affairs had announced the Revised Schedule VI to the Companies Act laying down a new format for preparation and presentation of financial statements by Indian companies. The Revised Schedule would be applicable from the financial year 2011-12 onwards. It has introduced many new concepts and disclosure requirements while it has also done away with several statutory disclosure requirements.

It was also suggested that corporates can publish only brief highlights in the newspapers and host the full text in their websites.

Mr L. Venkatesan who had done a thorough analysis of this subject made a detailed presentation and a number of issues were identified during the meeting. Subsequently a representation was sent to MCA.

4th June 2011

MCA had also mandated certain class of companies to file Balance Sheets and Profit & Loss Accounts from the year 2010 -11 onwards by using XBRL format. It was desired to have an interaction meeting on XBRL to understand the technical terms and its usage. This was subsequently organised and a representation based on the issues which emerged at the Seminar was also sent to the Government. A draft code for independent directors has been announced and after analyzing the draft code, the Committee would plan a suitable programme.

At its meeting held in January, Dr B Ravi made a detailed presentation on the draft Companies Bill 2011. Issues arising therefrom were discussed chapter-wise. The Committee felt that a representation should be made to Shri Yashwant Sinha, Chairman of Standing Committee on Finance as well as to the Ministry of Corporate Affairs. (This has since been sent).

Seminar on Revised Schedule VI and XBRL: This Seminar was organized to inform the corporates about the recent changes made by the Ministry of Corporate Affairs. Mr N Ramanathan, Managing Director, Ponni Sugars (Erode)Ltd. made a presentation on Analysis & Issues in Schedule VI. Mr S A Murali Prasad, Director, SAM Consultancy Services Ltd. made a presentation on Analysis and Issues in XBRL. He said XBRL is Extensible Business Reporting Language. It is an open, royaltyfree software specification, implemented by use of tools based on XBRL.

MCA had issued a draft on Companies (Dematerialisation of Certificates) Rules 2011 for comments from the public. These Rules were proposed to be made effective from 1.10.2011 and they will be applicable to all public companies and their subsidiaries which have raised money by issue of shares, debentures, etc. Members felt that it is impossible and impracticable to implement this. A Seminar on Cost Audit and Cost Record Rules under the Companies Act was organized on 10th September 2011 jointly with Financial Sector Committee. At one of its meetings, Ms Chandra made a brief presentation touching upon the various circulars issued recently by the Government/MCA. It was pointed out that the circulars issued from time to time by MCA and certain legislations, rules, provisions, etc., are not in line with the IT Act and the SEBI Act. After presentation and interaction, it was suggested that the Chamber should make a representation to the Government on the following and bring the same to the notice of the MCA for its consideration: - Participation by shareholders in general meetings under Companies Act 1956 through electronic mode - Waiver of Central Government approval for payment of remuneration to professional managerial person ANNUAL REPORT 2011 -12

l to r : K Saraswathi, N Ramanathan, T Shivaraman, S Venkatesan and S A Murali Prasad

Many points emerged from the Seminar and the Chamber sent a representation to the MCA seeking clarifications.

10th September 2011

Seminar on Cost Audit & Cost Record Rules under the Companies Act 1956: Mr B B Goyal, Advisor (Cost), Cost Audit Branch, Ministry of Corporate Affairs, Government of India who was the architect of the changes brought about by the Ministry was the Chief Guest and delivered the Keynote address. Mr S A Murali Prasad, a leading Cost and Chartered Accountant in Chennai made a presentation 38


the auspices of this Committee at Chembarambakkam. This was an outreach programme of the Chamber. Mr R Sethuraman, Senior Vice-President – Finance and Corporate Affairs, Hyundai Motors addressed the gathering and explained the simple definition of Transfer Pricing which means value of prices at which transactions take place among the related parties. These are the prices at which the enterprise transfers the cost and intangible properties and services to the associated enterprise. B.B.Goyal, Advisor (Cost), Ministry of Corporate Affairs, delivering the keynote address

on the impact, issues and implementation of the new provisions. Mr Goyal stayed for the entire session and also clarified many of the issues raised by the participants. The participants gave him a standing ovation.

DIRECT TAXES 10th February 2012

Programme on Vodafone Path breaking case – Policy v/s Jurisprudence: This event was organised to discuss the recent judgement of the Supreme Court in the case of Vodafone wherein the Government was asked to refund Rs 11000 crores to the company and its

S Suresh Kumar, Joint Commissioner, Transfer Pricing addressing. Seated l to r : R Sethuraman and K Saraswathi.

Mr S Suresh Kumar, Joint Commissioner – Transfer Pricing was the Chief Guest. He said TP should not be looked merely as an year end compliance activity. He stated that the Dispute Resolution Panel has substantially improved its working within the actual legal framework.

N Venkataraman addressing. Seated is Sriram Seshadri.

ramifications from the tax and legal angle. The speaker was Mr N Venkataraman, Senior Advocate, Supreme Court who said one cannot have a holding company and a subsidiary in one country. The treaty is nothing but a contract between the two countries. According to Supreme Court, certainty is important.

R. Sethuraman, Hyundai Motors at the mike

Mr Hardev Singh, Executive Director and Mr Aravind Srivatsan, Partner, BSR & Co. made presentations on the recent TP assessments.

2nd March 2012

Seminar on Transfer Pricing: To understand and analyse the problems involved in Transfer Pricing, a half day seminar was organized by the Chamber under 39

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ECONOMIC AFFAIRS Following programme was organized under the auspices of this Committee.

2nd March 2012

Discussion on Indian Economy – Taking Stock of things: Mr M R Venkatesh, Chairman of the Committee, anchored the programme. Mr R Raghuttama Rao, Managing Director, ICRA Management Consulting Services made a presentation on “State of the economy and business Environment – How do we get back to the path of growth”.

which was happening at the Chennai Trade Centre from 23rd to 25th January. Municipalika is India’s only event focusing on urban development and municipal solutions. This has been successfully organized since 2003. With the support of British Deputy High Commission and the US Department of Energy a stall was put up at the event and a presentation on “Cities for the GenNext” was made by the Secretary General. Sustainable Chennai Forum is another initiative of the Chamber which was launched on 9th November 2011 on the World Habitat Day. Members were apprised of the objectives of SCF and the logo of SCF was presented to the Committee. Regarding shortage of power, a representation was sent to Chairman, TANGEDCO during February 2012.

ENVIRONMENT, POLLUTION PREVENTION & CONTROL Along with the Energy Committee, this Committee also desired the participation of the Chamber in Municipalika 2012 scheduled to be held at the Chennai Trade Centre from 23rd to 25th January.

Speakers seated l to r : T C A Srinivasa Raghavan, R Raghuttama Rao, T Shivaraman, Vice-President, MCCI, C R Rajan and M R Venkatesh.

Mr T C A Srinivasa Raghavan, Senior Associate Editor of The Hindu Business Line pointed out that RBI’s efforts to curtail inflation through interest hike has not yielded the necessary results. He said that due to various political and other compulsions, practically no important decisions are being taken by the Central Government and this has slowed down the economy which is already under the impact of global crisis. Mr C R Rajan, former Vice-President (Strategy), Murugappa Group made a presentation on “Indian Economy – Looking Back and Looking Forward”. He stressed that the Government should pass the Goods and Services Tax Act, the Companies Bill 2011 and the Direct Taxes Code replacing the Income tax Act at the earliest. The programme was supported by Cosmos Bank who had recently opened their first branch in Tamilnadu in Chennai.

ENERGY The Committee met twice during the year. At its meeting held in December, the Committee discussed the revision of power tariff and increase in rates. It decided to send the MCCI’s suggestions to TNERC. These were subsequently sent.

FINANCIAL SECTOR The Committee organized a Seminar on Cost Audit and Cost Record Rules under the Companies Act on 10th September along with the Expert Committee on Company Law.

INDIRECT TAXES The Committee held three meetings during the year. A combined meeting of Indirect Taxes and VAT Committees was held mainly to seek their views on the issue of evolving a negative list for tax on services. The Ministry of Finance had sought to initiate a debate on the issue of evolving a negative list for tax on services. The negative list would mean, barring the services listed there, everything could be taxed. The positive list, on the other hand, will list out services that are to be taxed. The Chairman of the Indirect Taxes Committee felt that the Chamber should not react on this issue immediately since suggesting a negative list for so many items or services would lead to consequences. So far no clear term has been defined for “service” and the Government is trying to bring in every service into the tax net without identifying proper mechanism. It noted that Defence Services, Public Services, municipal services, technical services, charitable activities, basic and elementary education, police services, agricultural services, trusts, road services (passengers travelling by auto) etc. have been identified under the negative list.

The Committee decided on the participation in Municipalika 2012 ANNUAL REPORT 2011 -12

40


The objective of this scheme is to tax services based on a small negative list so that many untapped sectors would be able to be brought into the tax net. At a subsequent meeting, the Committee discussed this subject further and finalized a representation to be sent to the Government. (This has since been sent)

HRD/CSR At its meeting held in July 2011, it was noted that the Ministry of Corporate Affairs, New Delhi, has issued National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business. MCA had released the Voluntary Guidelines on CSR in 2009 as the first step towards mainstreaming the concept of business responsibilities. This has now been revised with a more comprehensive set of guidelines that encompass social, environmental and economic responsibilities of business. Members were asked to go through the guidelines and send their comments to the Chamber. Members suggested that the Chamber should undertake CSR activities in association with the Government of Tamilnadu - an example given was “Siruthuli” in Coimbatore – this is a successful project done with the support of Government agencies like PWD, Revenue, Forestry and the Corporation. Members were informed that the Chamber had developed a good website and requested them to visit the site periodically and place their queries, suggestions, comments, etc as also share their views, if any, relating to this Committee.

It also offered some suggestions for revamping of the website namely - possibility of online updation, online directory of members, most wanted question to be highlighted, job board where members could post their job requirements, etc. Efforts are on to complete these tasks. Other suggestions offered by the Committee were holding meetings through video conferencing, webinars, etc. The Committee felt that the Chamber should on its own, under the guidance of the Expert Committee, organize some programmes. Also, thought should be given to organize programmes in Tier II cities like Madurai, Coimbatore, Trichy, etc. The Committee organized the following programmes during the year :

9th September 2011

Seminar on Leveraging Information Technology for Business Excellence –Shop Floor to Top Floor: The aim of the Seminar was to explain how IT could help in making SMEs competitive by enhancing efficiency namely Cost Efficiency, Value Efficiency, Service Efficiency, Compliant Efficiency and Integration Efficiency. The Chief Guest for the event was Dr T S Sridhar IAS., Principal Secretary, MSME Department, Government of Tamilnadu. Other speakers were: Mr V Ramaswamy, Global Head – TCS ION who made a presentation on “Shop Floor to Top Floor”. The other topics covered

The Committee suggested to have a seminar/meeting with the PF officials, ESI, officials, Labour Department officials etc to understand the present legislative changes, policy changes and administrative requirements.

INDUSTRIAL DEVELOPMENT/ INFRASTRUCTURE The Committee along with Expert Committee on Energy and Environment, Pollution Prevention & Control considered the Chamber’s participation in Municipalika 2012.

l to r : Clynton Almeida, Madhavan, Malli J Sivakumar, R.Vittal Raj and V. Ramaswamy

A discussion meeting on Indian Economy – Taking Stock of Things was organized on 2nd March 2012 under the auspices of this Committee.

IT/ITES The Committee met twice during the year. It decided to take the Chamber’s web portal to the next level and make it more interactive and see how best the Chamber could market it. It also decided on increasing the membership base by bringing in more IT/ITES companies. 41

Dr T S Sridhar, IAS., addressing.

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were – Is Security a concern for SMEs? and using social networks for business growth. There was a Panel discussion moderated by Mr Malli J Sivakumar, Co-Chairman of the Committee. The Panelists were - Mr V Ramaswamy, Mr R Vittal Raj, Mr Clynton Almeida and Mr Madhavan.

created Baan, a leading ERP of its time. The programme was addressed by Mr Narayanan Ramaswamy, Partner, Management Consulting, KPMG Services, Mr Narendra Shukla, Vice-President and Director of Cordys Asia, Mr Rommal Fernando, General Manager –IT, Mahindra & Mahindra, etc.

24th March 2012

16th February 2012

Seminar on Propelling Growth for SMEs through IT :

BPM is a holistic management approach focused on aligning all aspects of an organization with the needs of customers. It is a discipline of modeling, executing, tracking, evaluating and modifying

This seminar was conceptualized to create an awareness and understanding of how information technology can help SMEs in improving their competitiveness and take them on the growth path and to make SMEs appreciate the current trends and issues in IT adoption and enable them take informed decisions in using IT for their business development.

Programme on Business Process Management –The True Differentiator:

Mr S Sivagnanam, Director, MSME Development Institute, Chennai delivering the keynote address said there is lack of knowledge about the use of IT amongst SMEs and their vendors. Also, financially it is beyond the reach of the small entrepreneur. Small industries do not have a budget for IT infrastructure. He said if any one develops a model for a particular sector, say for example, Narendra Shukla, Cordys, addressing.

S Sivagnanam, Director, MSME Development Institute addressing. Seated l to r: Clynton Almeida and K Saraswathi. Narayanan Ramaswamy, KPMG addressing

business processes, in response to the unique circumstances and characteristics of the organization. This programme was supported by Cordys, a new generation technology platform company set up by Jan Baan, who had earlier

Foundry, the same can be replicated. In doing this exercise, one needs support from Government as well he said. He said adopting lT is a mindset challenge – not a technology challenge. The only tool running across SMEs is Tally. There is a Cluster Development programme of the Government where 20 industries can join together and get assistance and through this they can be compelled to adopt ICT. On lean manufacturing he said 10 persons can join together for getting government benefit. There were Panel Discussions on the following two topics. Session I: IT as a Business Tool – For the Business/of the business/by the business which was moderated by Mr Malli J Sivakumar,CEO,Sundaram Infotech Solutions Ltd.

A view of the audience

ANNUAL REPORT 2011 -12

Session II: Opportunities and Challenges in IT Adoption –Cloud Computing & Virtualisation/Open source/IT security/social media 42


Panelists on the dais – l to r: R Sandeep, G N Sivaramakrishna, Malli J Sivakumar, C Harinath & H Mahalingam

moderated by Mr R Vittal Raj, Partner, Kumar & Raj.

Panelists on the dais – l to r: Bala J Raman, R Vittal Raj, Divya Sethi and Jamuna Swamy

The programme was supported by Airtel.

LOGISTICS

Chennai Trade Recovery:

The Committee held two meetings during the year and commissioned a study on the Port sector in Tamilnadu. Madras Consultancy Group were entrusted with the study.

MCCI along with other trade associations discussed and represented to the Chennai Port not to give priority berthing to shipping lines. The shipping lines started collecting surcharge from August 15th, 2011 and the present value of the collection was nearly Rs 200 crores from August to October. All these levies had dented the image of the Chennai Port and no concrete action was taken. It was felt that the Chennai Port has to increase access and exit points on a war footing for regulating container movements. The surcharge is an additional cost to the exporters and impacts adversely their competitiveness.

Seminar on Development of Ports: A Seminar was organised on 17th December 2011 which was inaugurated by Hon’ble Minister for Shipping who also released the port study. A request was made to the Hon’ble Minister to withdraw the congestion surcharge levied by the Liners. The Minister addressed this problem and subsequently the congestion surcharge was removed. At the Seminar, a plea was also made about restoring the seat on the Board of Trustees of Chennai Port Trust to the Chamber and the Minister made a public announcement that this will be done. The Chamber has taken immediate follow up action by writing to the Ministry of Shipping and the Chennai Port Trust in this regard and is awaiting the communication from the Ministry.

At a Seminar on 17th December, the President’s address touched on the Chennai Trade Recovery (congestion surcharge) being levied by the Liners. This had put heavy financial burden on the exim trade and the Minister’s attention was drawn to this surcharge and he was requested to intervene in the matter. At the Minister’s intervention, this levy was subsequently withdrawn.

20th August 2011 11th May 2011

Press Meet to highlight the woes of exim trade in view of failure of EDI version 1.5: The export-import community has been facing enormous problems due to the non-functioning and persistent problems of the new centralized Customs Electronic Data Interchange (EDI) version 1.5. This had hindered the clearance of goods and added to this, demurrage was being levied on the trade for no fault of theirs. The Committee took the lead in convening a press meet to inform the Press at first hand about the difficulties faced by the trade. Representatives of other organizations like Chennai Custom House Agents’ Association, National Association of Container Freight Stations, ACAAI and Chennai and Ennore Port Steamer Agents’ Association also participated. 43

Inauguration of Foundation Course on Exim Procedures: The Committee felt that there is a dearth of talent in the logistics field while it offered great opportunities for employment specially from the Arts and Science stream. The first such course was inaugurated at the MOP Vaishnav College for Women and was conducted by the Committee for the MBA students of the college. It was a part time course - half a day on Saturdays – covering 30 hrs. Starting in August this was completed in December. 59 students had enrolled . To give the students hands on knowledge the Chamber had organized a field visit to Air cargo division of Chennai Airport on 19th December. The officials of Air Cargo Complex explained in detail about the various cargo handling operations, procedures ANNUAL REPORT 2011 -12


various concepts and formalities relating to exim trade and to familiarize them with the latest policy changes and schemes.

J Krishnan addressing the students of MOP Vaishnav College.

and guidelines to be adopted while handling cargoes, equipment operations, etc. On the same day the students were also taken to study the operations of Container Freight Station. As a concluding part of the course, students were asked to make group presentations which were evaluated by the Chairman of the Committee. Later, a written examination was conducted and cirtified were idssued to success final students. The Committee also suggested conducting capsule courses like Product Liability insurance, marine insurance, shipping related courses, etc.

31st January 2012

Seminar on Exim Trade Facilitation:

Mr Anil K.Bamba, ITS., Zonal JDGFT delivered the inaugural address while Mr R Muthuraj, ITS., Jt.DGFT made a presentation on the issues relating to international trade with special focus on focused products/focused markets/status holder incentive scrip, etc. and on issues relating to international trade and the initiatives taken by the Government.

VAT A combined meeting of VAT and Indirect Taxes committees was held mainly to seek their views on the issue of evolving a negative list for tax on services. The negative list would mean, barring the services listed there, everything could be taxed. The positive list, on the other hand, will list out services that are to be taxed. At a subsequent meeting, the Committee discussed this subject further and finalized a representation to be sent to the Government. (This has since been sent and reproduced in the Chamber In-Touch – September issue).

28th February 2012:

Discussion meeting on Tamilnadu VAT Act: Mr Sunill Paliwal, IAS.,Secretary, Commercial Taxes & Registration Department, Government of Tamilnadu was the Chief Guest at this discussion meeting. The Chamber had submitted to him the points received from members and he dealt with them one by one. He also said the Commercial Taxes Department would be computerized soon at a cost of Rs 230 crores and the process would be completed in the next 14 months.

R Muthuraj, JDGFT, making a presentation.

Later, Mr P R Sudhakar, Chairman and Mr P R Subramaniyan, Co-Chairman of the Committee took the sessions in which they covered subjects like Input Tax Credit Scheme and Procedure, ITC on Inputs, ITC reversal mechanism/stock transfer, Works contract, TDS scheme, etc.

This Seminar was designed so as to acquaint the executives/ entrepreneurs engaged in the area of exports and imports of the

Anil Bamba, Zonal DGFT addressing.Seated l to r: K Saraswathi, J Krishnan and R. Muthuraj

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Seated l to r: K Saraswathi, P R Sudhakar, Sunil Paliwal, T T Srinivasaraghavan and P R Subramaniyan 44


MCCI-MMA VIDEO DISCUSSIONS:

down to the last is also very important. The end result is customer satisfaction.

The Chamber and the Madras Management Association have been jointly conducting video discussions on topics of interest. During the year, the following video discussions were organized:

April - Kaizen – Just in Time Technologies

August - One for All – The Meerkat Way

Meerkats are a type of animals who live in inhospitable environments but work together to achieve their goals. There were great learnings from this video namely Synergy; respect your teammates; communicate; co-operate; respect others’ feelings; never under-estimate anyone; do your job with 100 percent commitment, etc.

Mr K Parasuraman, a motivational speaker and management training consultant was the faculty.

The Kaizen management is accepted as the best management practice and is dedicated to the improvement of productivity, efficiency, quality and in general for business excellence. The Kaizen methods are internationally acknowledged as methods of continuous improvement through small steps and also create good economical results for companies. The speaker was Mr Jayabalan, an IRCA certified Lead Assessor for QMS and Certified Black Belt with six sigma implementation experience and knowledge of lean techniques in shop floor.

April - Deming’s Roadmap for Change – Commitment to Quality

The video was a case study of Zytec Corporation giving behind-the-scenes look at company’s effort to put Deming’s principles into practice. The video talked about Change, Organisational Development and Quality.

Mr G Ramasubramanian, a trainer was the faculty.

He said:

“There is no substitute for knowledge”.The most important things cannot be measured; and

The most important things are unknown or unknowable.

October - That’s Not My Problem

Ms Sandhya Sankar, a well known corporate trainer, coordinated the discussion.

A lively animated video that highlighted the need for employees to put out small office fires before they blaze out of control was shown. The video demonstrated what

May - The Miracle Man The theme of this video was whatever the mind can conceive and believe, we can achieve it.

Shripriya Srinivasan interacting with the participants.

The session was handled by Mr Murali, Trainer and Psychological Counsellor who also gave some lessons and practical sessions on yoga, breathing exercise, etc.

can happen when we are not personally motivated to fix a problem before it gets out of hand with escalating consequences. The key issues were; (a)how to see needs and take responsibility (b)how to face up the problems and (c)how to accept and manage responsibility.

June - Middle Manager as Innovator:

The aim of the discussion was to learn the value of innovation, how to spot the opportunities and to get clear steps for achieving increased involvement and implementation. Ms Jerina Jahaffar, Consultant and Corporate Trainer conducted the programme.

November - Marketing: Off and Running

The video discussion focused on the various creative and inexpensive ways available to reach out to customers and develop marketing strategies; creating an identity and by reinforcing it from time to time, helps many individuals and companies to establish the business.

Mr Mukund, an expert corporate trainer, handled the session.

July - Between You and Me

The video showed realistic role plays to help employees embrace team work and solve their own conflicts without management intervention. Every person in the organization 45

Ms Shripriya Srinivasan, Corporate Trainer, conducted the programme.

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January - “The Point of Impact”

March - Team Work – How Synergy Succeeds

Mr S K Raja, Trainer and Facilitator conducted the programme.

Mr Roshy Sebastian, a behavioural trainer and a certified Yoga coach was the faculty.

The point of impact between a customer and a person in an organization or a retail shop is nothing but communication between the two. Customer service is so important as the customer forms opinions about one’s organization at the first point of contact. Customer service is good commonsense and the three keys for this are – attitude, communication and effort.

The video illustrated the seven building blocks to team success namely:

 Synergy

 The

goals

 The

roles

February - Can You Help Me?

 The

rules

 Building

 Resolving

 Celebrating

The highlights of this video were – greet the customer and maintain friendly rapport with him; discover the wants and needs of the customer; find out what the customer needs to know and listen carefully. Explain the benefits and features to the customer – this is of personal significance to them.

trust conflicts; and success

The Facilitator was Mr M Alagiri who said “Features tell – Benefits sell”.

Soft skill Training Modules Developed By The Chamber The MCCI has set up a Vocational Training and Skill Development Centre. Its aim is to improve the availability of skilled manpower to the member-industries and to enhance the employability of educated and semi- educated youth. As a part of this initiative, the Chamber offers life skills trainings and exclusive training modules on the following have been developed. 1 Team building

7. Communication

2. Positive attitude

8. Time Management

3. Managing self

9. Ethics and Values

4. Personal Hygiene & Etiquettes

10. 5 S

5. Interpersonal Relations

11. Safety

6. Fitting into the Organization Well thought out materials on the above have been prepared through experts by the Chamber, both in English and in Tamil. The Chamber offers trainings on the above to

employees of companies as “In- Company” programmes

students of educational institutions, to improve their employability and adaptability

Others who would like to improve their soft skills

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GENERAL MEETINGS 16th June 2011

Investment and Business Opportunities in the Piemonte Region (Italy)

Governments. The Chamber invited a cross section of people to have their views on these. From the UK side, Dr Philip Douglas, First Secretary, Climate Finance and Technologies within the joint British Commission-DFID India Climate Change and Energy Unit and Ms Rachel Brass, First Secretary, Climate Change and Energy in the cross Government unit of FCO, DEC and DFID of the British Government were present. The programme was moderated by Mr P M Belliappa, IAS (Retd). It was informed that the UK Government has set apart 2.9 billion pounds for low carbon initiatives and that a good share of it will be available for countries like India to pursue some of the initiatives in this regard.

1st July 2011

Seminar on Securing US Green Card: A view of the dignitaries on the dais

A high level delegation from Piemonte Region visited Chennai and the Italian Trade Commission and the Piemonte Agency partnered with the MCCI in organizing a meeting with them. Presentations were made by the Italian side representatives on the following:

Torino Piemonte, a welcoming region

Investment Opportunities in Piemonte

Webasto and the mechatonics sector in Piemonte

Piemonte – India : Our business experience

There was good interaction between the representatives of Italian and Indian side.

17th June 2011

Round Table discussion on Fiscal Policies for Low carbon Investment: Fiscal instruments and incentives have been recognized as one of the important tools for mitigating climate change by various

A view of the meeting 47

This programme was jointly organized with Fox Mandal Little. The objective was to brief the participants on how to secure a US Green card via the EB-5 programme created by the US Congress to encourage foreign investment in the United States, to create jobs and provide expeditious Residency and Citizenship to qualified foreign investors. Mr Gregory Wing, co-founder of the Green Card Fund and President and CEO of Bedford International made a presentation on the various aspects of applying for an EB-5 visa. Mr Satish Kholay, Managing Director, GreenCard Fund clarified the queries of the participants.

25th August 2011

Launch of United Nations’ Globally renowned Responsible Production Framework: Responsible Production (RP) is an approach designed by United Nations Environment Programme to build capacity on safety management across an organisation’s value chain. To launch the globally renowned RP framework, ASSIST, in association with MCCI organized this programme. Mr Srinivasa Narayanan, Managing Director, ASSIST spoke about the organisation’s initiative and systematic engagement to nurture responsible enterprises in Gujarat. ASSIST, a non-profit

Srinivasa Narayanan. Managing Director, ASSIST and K Saraswathi, Secretary General, MCCI presenting a memento to D. Jayakumar, Speaker of the TN Assembly.

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organization was prepared to train people and ready to partner with the Chamber in this endeavour. The Chief Guest at this launch was Mr D Jayakumar, Speaker of the TN Legislative Assembly. He said RP framework will be of immense help to micro, small and medium enterprises. Tamilnadu being the hub of MSMEs with more than 15 per cent of such units in the country, it was imperative to increase their awareness on environment and sustainability.

5th September 2011

Business Opportunities between India and Switzerland: Greater Geneva Berne area(GGBa), is a non-profit organisation created by the Regional Government of Western Switzerland. Its representatives, GGBa Director in India, Mr Luc Prem Jalais and Deputy Director, GGB, Switzerland, Mr Thomas Bohn , made a presentation on Business Opportunities between India and Switzerland.

3rd September 2011

Discussion on “Global Economic Crisis – Consequences & Remedies”: This was a joint programme by MCCI, Institute of Economic Education and the Indian Liberal Group. The speaker was Mr S. Kalyanaraman who was formerly with ADB. He spoke about S&P downgrading United States rating from AAA to AA+ in view of which all stock markets in the world recorded Luc Prem Jalais and Thomas Bohn interacting with the members and invitees.

The objective of GGBa is to bring the needed support to foreign companies wishing to develop business in Europe and this support is free of cost and varied. It supports a large number of foreign companies looking to establish business operations in their area. They said companies such as Tatas, Infosys, Hindujas, Piramals, Aditya Birla Group, Jindal Group, etc. have already set up their units in Switzerland. T.T.Srinivasaraghavan, President, MCCI, Dr.S.Kalyanasundaram IRAS (Retd) formerly of Asian Development Bank and invitees viewing the presentation.

massive declines and the downgrade complemented the turmoil in Europe with the debt problem faced by the PIGS – Portugal, Ireland, Greece and Spain. At the turn of the 21st century, the two developing economies were China and India both accounting for a total of 60% he said.

12th September 2011

Talk on “Reset or Recession”? by Mr Robert F Bruner, Virginia University: The Chamber organized a talk on “Reset or Recession”? by Mr.Robert F Bruner who is the Dean and Charles C Abbott Professor of Business Administration at the Darden Graduate School of Business Administration, University of Virginia, USA.

He advised to promote savings though this is not going to be acceptable to American minds who spend beyond their means and who think of the present, not the future. He stressed to create a national water grid- which can double agricultural production. Inter-linking of rivers alone will yield an additional 35 m ha (9 crore acres) of land with assured irrigation and if this 9 crore acres of land is distributed to 9 crore poor families, the village India will progress and India can become a developed nation by 2020 with increased per capita income and employment opportunities. l to r : Robert F Bruner, M.R. Venkatesh and V.N. Dalmia

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Speaking about global developments, Mr Robert Bruner said growth will be slow temporarily as purchasing by firms has softened and private consumption is subdued. There are global supply disruptions from Japanese earthquake. Some possible bright spots in the medium term were – continued investment in energy owing to environment and discovery of new reserves and alternative energy; and growing middle class in the buoyant emerging economies with attendant expectations for education, healthcare and life style. He said global transfers of technology and best practices will boost productivity.

15th September 2011

Interaction meeting with representatives of VDMA, Germany: VDMA refers to German Engineering Federation which has a network of around 3100 engineerihng companies, making it one of the largest and most important Industrial Associations in Europe. At an interactive session at the Chamber, Mr Ulrich Ackermann, Managing Director of Foreign Trade Office of VDMA made a presentation on “Indo-German Trade in the Machinery Sector – Challenges & Opportunities”. He said Germans are world leaders in many sectors. For member companies of VDMA, India is a new and emerging market. However, he referred to the lack of good infrastructure in India which is a critical factor. German companies face this as a hindrance to do business in India. The other factors he attributed were nonavailability of land at reasonable price and skilled manpower. For automotive companies, India is a sourcing hub. Indo-German trade will pick up in the next two years and VDMA is ever ready to support Indian companies he said.

T T Srinivasaraghavan, President welcoming the Belgian Ambassador, H.E. Mr Pierre Vaesen

Future Trade Commissioner for Chennai and Mr Raj Khalid, India Representative of Port Antwerp met the Chamber representatives at an interaction meeting. The Ambassador appreciated the Madras Chamber’s role in development of Tamilnadu economy as well as national economy. He said Belgium which had a highly diversified economy was keen to strengthen bilateral trade ties with lndia. While Flanders has a trade office in Bangalore, Chennai would soon have a trade office representing Brussels and Wallonia regions. He further said that they are ready to lend a helping hand to Indian firms interested in setting up their units in Belgium particularly in areas like logistics, car assembly, bio-technology and infrastructure sector. Mr Raj Khalid requested the members to consider setting up warehouses in the Port of Antwerp which he said is very cost effective. From there, the products could be traded locally and could be sent to other European countries as well.

26th November 2011

Discussion on Use of Technology in Statutory Compliance: This was an interactive seminar with the representatives of IPG Tech Legal, New Delhi which has developed a user friendly

Ulrich Ackermann, MD, Foreign Trade Office, VDMA interacting with the members

18th October 2011

Meeting with Ambassador for Belgium: His Excellency Mr Pierre Vaesen, Ambassador for Belgium and his officials namely the Consul General for Belgium, Trade Commissioner in Bangalore Mr. Jayant Nadigar, Mrs Fruithof, 49

S. Sankaranarayanan,MCCI, welcoming the gathering. Seated are Goverdhan Jayaram and Prasantha Kumar Sahu

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software which could help the corporate professionals in meeting the compliance and statutory requirements. The software includes 50-60 compliance requirements in the areas of finance, commercial, labour, energy, safety, health, environment, taxation, etc. Mr Goverdhan Jayaram and Mr Prasantha Kumar Sahu, both representing IPG Tech Legal made a presentation and interacted with the participants.

1st December 2011

Meeting with Czech Ambassador: His Excellency Mr Miloslav Stasek, Ambassador for Czech Republic in India and H E Mr Vaclav Bartuska, Ambassador at Large for Energy Security, Czech Republic met the members of the Chamber. The Ambassador informed that the Czech Republic

l to r : D.V. Giri, Assocham, S Srinivasan, SIDBI and D C Joshi, NRDC

Mr D C Joshi, Chief, Business Plan, Development and Design Engineering, NRDC invited scientists, industry and individuals to give their inputs on how to make use of the 47 biotech processes and know how offered by the Corporation in the fields of bio-pharma diagnostics, animal biotech and plant bio-tech. Mr S Srinivasan, Asst. General Manager, SIDBI, urged the first generation entrepreneurs to make use of micro credit, micro enterprise finance and credit guarantee fund in the fields of biotech, information technology and renewable energy.

4th February 2012

A view of the meeting

is on its way to enhance its nuclear energy share in power sector from 30 percent to 50 percent and nuclear power plants would be for future energy needs. Czech Republic was looking to improve trade exchanges with India, especially South India. He further said in Tamilnadu, trade potentials between the two countries existed in IT, automotive, agriculture and energy sector.

22nd December 2011

Seminar cum B2B on “Bridging the Gap in Biotech-Healthcare and Agri-biotech Commercialisation”.

Programme on Bridging Skill Gap for improving Employability of Technical Work Force: As part of its 175th year celebrations, the Chamber had launched a project for setting up a Centre for Vocational Training & Skill Development with the support of its members. This programme aimed at bringing together the industry and the academic institutions to develop various modules for technical professionals to meet the requirement of the manufacturing sector as also to seek the opinion of the participants as to how the Chamber can move forward. The aim of MCCI’s Skill Development Centre is to train youth in specific skills that are required by the industry thus aiding development of industry and the region.

MCCI, Assocham and NRDC jointly organized a full day seminar on the above. The objective was to bring the technology developers and the technology users together so that the “lab to land” transformation happens. Mr D V Giri, Southern Regional Director, Assocham stressed that the need of the hour is to introduce carefully drafted industry-friendly and proactive policies in the biotech and health care sectors to tap into the $ 100 billion outsourcing opportunity to enable foreign and domestic players to set up shops here. ANNUAL REPORT 2011 -12

K Saraswathi, Secretary General, welcoming the participants. 50


Mr Ravi Kannan, Consultant, touched on the impact of skill deficit in Engineers, gaps in knowledge which has an impact on industry, poor problem solving capability, etc. Mr D K Pradhan, COO of the Centre made a presentation on low cost automation. Presentations were also made by Bashgo Maintenance Services, ONWARD Technology and College of Innovation and Industry Skills, Western Australia.

6th February 2012

while the Hon’ble Minister for Corporate Affairs, Dr M.Veerappa Moily was the Guest of Honour. The MCCI was one of the co-organisers of the event. The Minister in his address said that the Companies Bill was on the last mile stage and would be passed during the budget session. He hailed the National Competition policy as a game changer and termed it as the second most important reform measure after liberalisation that aimed for inclusive growth.

Talk by Mr David Willey, Deputy ViceChancellor, Bournemouth University, UK on Corporate Social Responsibility: Its Importance for Industry and Education: The Chamber along with Association of British Scholars, Chennai (ABS) organized this meet. Mr P M Belliappa, Mentor, ABS Chennai, referred to the rapid changes in technology and various other sectors in the 21st century and felt that both the business professionals and the youth are compelled to keep pace and if they do not, they will be left behind. He welcomed Mr David Willey to Chennai, the centre of education, music, dance, culture and politics. In his address Mr David Willey said that CSR covers the relationship between the corporations and societies with which they interact and often involves trade-offs between competing issues, particularly profit and addressing broader stakeholder and

Presentation by David Willey being watched by the audience

global concerns. CSR is a commitment to improve community well being through discretionary business practices and contribution of corporate resources. Corporates should follow fair and beneficial business practices towards labour, community, not use child labour knowingly, pay fair salaries to its workers, provide safe working environment, good working conditions for employees and contribute to its community e.g. health care and education.

Dr M Veerappa Moily, Union Minister for Corporate Affairs addressing. Seated l to r: V Murali, L Ganesh, H.E. Dr.K. Rosaiah, Governor of Tamilnadu, CA G. Ramaswamy, Naved Masood, Secretary, MCA and CA S. Santhanakrishnan.

T T Srinivasaraghavan handing over a memorandum on new Companies Bill to Dr M Veerappa Moily.

7th February 2012

India Corporate & Investor Meet: The Ministry of Corporate Affairs organized a week long programme in major cities including Chennai. At the programme at Chennai, His Excellency the Governor of Tamilnadu was the Chief Guest 51

T T Srinivasaraghavan, President, MCCI with Suresh B Menon, Regional Head, SEBI, Chennai.

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After the inaugural, there were four technical sessions namely (a) CSR (b) Corporate Governance (c) Investor related issues and (d) New Initiatives –Companies Bill 2011 and Amendments to Schedule VI of XBRL. Mr T T Srinivasaraghavan, President of the Chamber, chaired the session on Corporate Governance.

the members of the Chamber. Addressing on India-Australia Trade, Business and Investment Prospects, Hon’ble Grant Woodhams said trade between India and Australia is likely to be doubled in the next five years.

11th February 2012

Training Programme on Team Building: Teamwork has become an important part of our working and life culture today. Individuals, organizations and businesses have come to the realization that when using effective team work, more things are accomplished. Organisations that survive the twenty first century will undoubtedly be characterized by team work. Equus Technology and HR Consultancy Services partnered with this programme. Mr Saba Rama Rathnam, a Trainer and Mentor was the faculty. He said there are many benefits to using team work in the work place. Fast learning is one benefit because people tend to learn at a faster pace when working with other people. It

A view of the meeting

Australian companies are constantly looking for harnessing new initiatives. There are opportunities in education, faculty exchange, research and development etc. he pointed out. He invited members to “Look East” for furthering their business.

Saba Rama Rathnam, Trainer conducting the session.

also promotes healthy competition. It enhances creativity. Helps to bring in new and innovative ideas to the organizations. The trainer stressed that each player must be dedicated to the whole team and be willing to act unselfishly. When challenges arise the team needs to have the resources, accountability and commitment to deal with them in a constructive and positive manner.

Signing of Letter of Intent between MCCI and AVTEG.

On the occasion, a Letter of Intent between MCCI and Australian Vocational Training and Employment Group Pvt. Ltd. (AVTEG) was signed.

14th February 2012

AVTEG (Australian Vocational Training and Employment Group Pvt.Ltd.) is a leading training institute in Western Australia. The College of Innovation and Industry Skills, a part of AVTEG, has been selected as the Finalist for the 2012 Western Australian International Training Provider Category.

A high level Parliamentarian delegation from Western Australia led by Hon’ble Grant Woodhams, MLA., Member for Moore and Speaker of the Legislative Assembly of WA, National Party of Australia, visited the Chamber and had an interaction meeting with

The Chamber is currently working on organising highended technical programmes in fields like welding, industrial electrical, etc. with AVTEG.

Visit of Western Australian Parliamentary Delegation:

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TRADE SERVICES

FICCI:

Trade Information & Library:

The Chamber is also a Member of the Federation of Indian Chambers of Commerce & Industry, New Delhi.

A number of trade enquiries were received by the Chamber during the year which related to imports, exports, joint venture possibilities, foreign collaborations, etc.

Consultative Committee of City Chambers of Commerce:

The Chamber has a compact library. Additions to the library are being intimated to the members through the Monthly Bulletin “Chamber In-Touch”.

Certification of Export Documents and Recommendations for Visas: The Chamber issues certificate of origin for goods being exported to other countries, attests export documents, invoices, agreements, sales contracts, etc. There is a sharp increase in this activity over the last few years. The Chamber also issues letters to the various Embassies/ Consulates recommending grant of visas for business travel. This service, however, is provided only to members of the Chamber.

ADVISORY SERVICES Arbitration: The Chamber undertakes arbitration between members and also between members and non-members on request. It has a panel of arbitrators. The Chamber is a Life member of the lndian Council of Arbitration, New Delhi.

Secretarial Services: The Chamber provided secretarial services to The Employers’ Federation of Southern India till the end of July 2011. EFSI moved out from the Chamber premises in the first week of August 2011.

ASSOCHAM: The Madras Chamber is a Promoter Affiliate of The Associated Chambers of Commerce & Industry of India (ASSOCHAM), New Delhi. The following were the nominees of the Chamber on the Managing Committee of Assocham for the year 2011-12: Mr T T Srinivasaraghavan Mr T Shivaraman Mr Srinivasan K Swamy Mr N Srinivasan (F&R) Retd. Mr S Gopal

The Chamber continued to be a Member of the Consultative Committee of City Chambers of Commerce during the year. It is a unique practice in Chennai in that the city Chambers coming under the banner of Consultative Committee of City Chambers of Commerce charge a uniform fee for issue of Certificate of Origin and Visa Recommendation letters. The following events were organized under the auspices of the Consultative Committee:

August 2011 A meeting of the Consultative Committee of City Chambers was called to decide the course of action on levying service tax on some of the services rendered by the Chamber. It was accepted by all Chambers that from 1st September 2011 service tax would be collected for issue of certificate of Origin, issue of visa recommendation letters and any special certifications. The Chamber has since been collecting this levy and remitting to Government.

23rd September 2011 At this meeting, the secretariat of the Consultative Committee, which rotates between each Chamber, was handed over to Tamil Chamber of Commerce.

25th November 2011: A meeting on Bilateral Trade Opportunities between US and India was organised with the participation of the US Consul General in Chennai, Ms Jennifer McIntyre. The speakers were Mr James Golsen, Principal Commercial Officer and Mr Michael Cathey, NonImmigrant Visa Chief, both from US Consulate, Chennai.

Media Releases: The Chamber issued the following media releases during the year: April 2011

Power situation in Tamil Nadu

14th March 2012 Railway Budget 16th March 2012 Union Budget 24th March 2012 Tamilnadu State Budget

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REPRESENTATIONS TO GOVERNMENT: The Chamber sent the following representations to various bodies: 4th May 2011

Ministry of Corporate Affairs regarding filing of Balance Sheet and Profit & Loss Account in Extensible Business Reporting (XBRL) mode

15th December 2011

CBEC – MCCI’s suggestions on revised concept paper on taxation of services based on negative list

29th December 2011

Tamilnadu Electricity Regulatory Commission – Suggestions on proposed power Tariff, transmission charges and R&C measures determination by the Hon’ble Commission

7th February 2012

JDFT , Chennai – Scheme Code list – Exports under claim for Chapter 3 of FTP and free shipping bill

7th February 2012

Dr. M Veerappa Moily, Minister for Corporate Affairs on New Companies Bill

16th February 2012

Mr Ramesh Kumar Khanna, IAS., Principal Secretary to Government, Energy Department, regarding power situation in Tamilnadu

28th February 2012

Mr Sunil Paliwal, IAS., Secretary, Commercial Taxes & Registration Dept. Government of Tamilnadu regarding issues relating to Tamilnadu VAT Act

16th April 2012

Chairman, Law Commission of India, New Delhi regarding Form “C” under CST Act 1956 – Complexity

28th April 2012

Dr Rahul Khullar, IAS.,Secretary, Department of Commerce, Ministry of Commerce & Industry regarding the problems faced by the exim trade at the Chennai Port

5th May 2012

Dr Rahul Khullar, IAS.,Secretary, Department of Commerce, Ministry of Commerce & Industry regarding container related surcharges at the Chennai Port.

CO-OPERATION AGREEMENT The MCCI signed a Cooperation Agreement with The Chamber of Commerce & Industry France-India, France under which both the Chambers will work together to provide a framework within which the CCIFI and MCCI will work collaboratively together and establish a basis to further develop the relationship and achieve greater collaboration.

MEMBERSPEAK: Following were the reactions of some of our members on the reviews on the Coffee Table Book “Championing Enterprise – 175 Years of The Madras Chamber of Commerce & Industry”. Congrats to you and the entire team of MCCI Best wishes C. Premchand Avalon Consulting Congratulations !!! And expecting many more... As you have rightly said, we are too proud to be associated with MCCI. Regards Sheeba Wilson Director nice Neotech Medical Systems Pvt. Ltd.

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Kudos MCCI and Mr Sriram TE Soundarajan Fluidtherm Technologies Pvt. Ltd. Good work done. L. Venkatesan Very happy to see your mail on the subject. Congratulations to you and all your team members for the excellent job done. M Raman EVP - Secretarial & Legal Corporate Division The Sanmar Group

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Guestspeak

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Chamber in the NEWS

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(MCCI Representation on Public Bodies)

Organisation

Representative

State Manufacturing Competitiveness Council, Government of Tamil Nadu

Mr T T Srinivasaraghavan President Alternate nominee:Dr R Mahadevan

Central Excise Commissionerate I Regional Advisory Committee

Mr P R Sudhakar Brakes India Ltd.

Central Excise Commissionerate II Regional Advisory Committee

Mr P R Subramaniyan Larsen & Toubro Ltd. (ECC Division)

Central Excise Commissionerate III Regional Advisory Committee CE – Public Grievance Committee

Mr K K Sekar Ashok Leyland Ltd.

Central Excise Commissionerate IV Regional Advisory Committee

Mr P R Sudhakar Brakes India Ltd.

Regional Direct Taxes Advisory Committee, Chennai

Mr Sriram Seshadri BMR Advisors Pvt. Ltd.

Chennai Trade Coordination Committee Customs Advisory Committee Cargo Facilitation Committee – AAI Ennore Port Advisory Board Board of Trustees, Chennai Port Trust (MCCI is back on the Board of Trustees of Chennai Port after a considerable gap).

Senate of the Annamalai University State Level Advisory Board for MSME Sustainable Chennai Research Consortium University of Madras Oikos Chennai Chapter Divisional Railway Users’ Consultative Committee

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Mr B Ramanakumar BSR & Co. Mr J Krishnan S Natesa Iyer & Co.

Mrs K Saraswathi Secretary General

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The Organisation PRESIDENT

VICE-PRESIDENT

GENERAL COMMITTEE

SECRETARY GENERAL

Specialised Committees - - - - - - - - - - - - -

Support Services

Company Law/Corporate Matters Direct Taxes Economic Affairs Energy Environment, Pollution Prevention & Control Financial Sector HRD & CSR Indirect Taxes Industrial Development/Infrastructure IT & ITES Legal Affairs Logistics VAT

Trade Information: - Publications - Members’ database - Information database - Website

- Secretarial Services

- Commercial Arbitration

- Visa Recommendation - Issue of Certificate of origin

- Membership - Accounts - Establishment

Auditors: Messrs. RGN Price & Co. were re-appointed as Auditors of the Chamber for the year 2011-12. Madras Chamber Secretariat: Mrs K Saraswathi Mrs Jessie Edwards Mr S Sankaranarayanan Mrs B Highland Mrs V Alamelu Mr P S Mohan Mrs D Vasumathi Mr A Elumalai Mr R Suresh

Secretary General Deputy Secretary Senior Manager (Programmes) Manager (Trade Facilitation) Manager (Member Services) Manager (Accounts) Executive (Admn. & Programmes) } Support Staff }

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Corporate Members 足 A A4 I Apps Solution Pvt.Ltd A S Shipping Agencies Pvt. Ltd. A V Thomas & Co. Ltd. Acrastyle Controls India Private Ltd. Acrastyle Power India Limited Adayar Gate Hotel Ltd. (ITC Sheraton Park) Addison & Co. Ltd. Adrenalin eSystems Ltd. AGP International Services Akzo-Nobel India Ltd. Alcatel-Lucent India Ltd. Alfanar Engineering Services India Pvt. Ltd. Allison Transmission India Pvt. Ltd., Allsec Technologies Ltd. Alpha Water Technologies India Pvt. Ltd. Alstom T & D India Limited Altacit Global Amalgamations Private Ltd. Ambattur Clothing Ltd. Amrutanjan Health Care Ltd. Anantara Solutions Private Limited Andritz Technologies Pvt. Ltd. Ankeena Networks Pvt. Ltd. Apex Laboratories Private Ltd. Aquatherm Engineering Consultants (India) Pvt.Ltd. Arjun Chemicals Private Ltd. Arkema Peroxides India Private Ltd. Armstrong International Private Ltd. Ashok Leyland Ltd. Audco India Ltd. Aumund Engg. Pvt. Ltd. Auro Mira Bio Energy Madurai Limited AVA Cholayil Health Care Private Ltd. Avalon Consulting Avant-Garde Engineers & Consultants Pvt. Ltd.

B Bank of America Basco India Bashgo Maintenance Services Pvt. Ltd. Beardsell Ltd. Beva Silicones Private Ltd., BGR Energy Systems Ltd. Bharat Petroleum Corporation Ltd. Bharti Airtel Ltd. Blackstone Group Technologies Pvt. Ltd. 63

BMR Advisors Private Ltd. BNP Paribas Brakes India Ltd. Britannia Industries Ltd. BS & B Technologies (P) Ltd. BSD & Associates BSR & Co.

C CADD Centre India Pvt.Ltd. Calibre Lubricon Pvt. Ltd. Cameo Corporate Services Limited Caparo Engineering India Private Ltd. Capitalianz Ventures (P) Ltd. Capricorn Food Products India Ltd. Castrol India Ltd. CavinKare Private Limited Chain-Sys India Pvt. Ltd. Chakiat Agencies Pvt. Ltd. Chemetall-Rai India Ltd. Chemplast Sanmar Ltd. Chennai Petroleum Corporation Ltd. Chettinad Cement Corporation Ltd. Chidambaram Shipcare Pvt. Ltd. Cholayil Pvt. Ltd. Cognizant Technology Solutions India Pvt.Ltd. Computer Age Management Services Pvt.Ltd Computer Sciences Corporation India Pvt. Ltd. Consolidated Construction Consortium Ltd. Contfreight Shipping Agency (I) Pvt. Ltd. Converteam EDC Pvt. Ltd. Corporation Bank Credit Agricole Corporate and Investment Bank Crompton Greaves Ltd.

D Dachser India Pvt. Ltd. Daimler India Commercial Vehicles Private Ltd. Damodar Tradelinks Pvt. Ltd. Darts India Private Ltd. Dax Networks Limited Deloitte Haskins & Sells Delphi-TVS Diesel Systems Ltd. Deutsche Bank AG Diana Shutters Pvt. Ltd. DORMA India Private Ltd. Durr India (P) Ltd.

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Dynamic Netsoft Solutions India Pvt. Ltd. Dynamic Netsoft Technologies Pvt.Ltd

E Easun - MR Tap Changers (P) Ltd. Easun Reyrolle Ltd. Easy Solutions EDAC Engineering Limited Engenius Erectors Pvt. Ltd. Enmas Andritz Private Ltd. Enmas O & M Services Pvt. Ltd. Entvent Tools & Services EPT Engineering Services Pvt. Ltd. Ernst & Young Pvt. Ltd. ESAB India Ltd. Eshwari Petro-Tech Products Pvt. Ltd. ETA Engineering Private Limited Ethical Intelligent Technologies LLP Eurocon Tiles Eveready Industries India Ltd. Everest Industries Ltd. Excel Optics (P) Ltd. Express Infrastructure Pvt. Ltd.

F Farm Implements (I) Pvt.Ltd. Fichtner Consulting Engineers India Pvt. Ltd. Fiducial Insurance Brokers India Pvt. Ltd. FLSmidth Private Limited Fluidtherm Technology (P) Ltd. Forbes & Company Ltd. Ford India Private Limited Fox Mandal & Associates Frendi Fashions Pvt. Ltd. Fresh & Honest CafĂŠ Ltd. Futura Polyesters Ltd. (Futura Fibres Division).

G G M Pens International Ltd. Garuda Vaayu Shakthi Limited Gates Unitta India Company Pvt. Ltd. Gencor Pacific Organics India (P) Ltd. General Nice Mineral Resources (India) Pvt. Ltd. Gillanders Arbuthnot & Co.Ltd. Globelink WW India Private Ltd. GMR Power Corporation (P) Ltd. Gordon Woodroffe Logistics Ltd. GR Medi Corp Greaves Cotton Ltd., Chennai Greaves Cotton Ltd. Ranipet Greta Investments Ltd.

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GSV Associates Guardian Anti Corrosives (P) Ltd. Gulf Consult Designers & Engineers Pvt. Ltd.

H Hariharan Foundations Pvt. Ltd. Hauer Associates Hinduja Foundries Ltd. Hindustan Coca-Cola Marketing Co. Pvt. Ltd. Hindustan Unilever Ltd. Housing Development Finance Corporation Ltd. Hyundai Motor India Ltd.

I ICRA Management Consulting Services Limited iData Systemtech and Consulting Private Limited IDBI Bank Ltd. ImageGrafix Engg. Services Pvt. Ltd. iNautix Technologies India Private Ltd. India Cements Capital Ltd. India Pistons Ltd. Indian Additives Ltd. Indian Oil Corporation Ltd. Indian Overseas Bank Indian Potash Ltd. Indotec Engineering Pvt. Ltd. International Clearing & Shipping Agency (I) Pvt. Ltd. International Flavours & Fragrances India Ltd. International Services Invensys India Private Ltd. IP Rings Ltd. i-Sense Technologies Pvt. Ltd. ITC Limited

J J Cynergy Dental & Medical Johnson & Johnson Ltd. Johnson Lifts Pvt. Ltd. Jumbo Bag Ltd.

K K Steamship Agencies Pvt.Ltd. K Vaitheeswaran & Co. K.I (International) Ltd. Kaleesuwari Refinery Private Limited Kannan Fibre Industries Kansai Nerolac Paints Ltd. Karnataka Bank Ltd. Kasturi & Sons Ltd. KCP Sugar & Industries Corporation Ltd. Keld Ellentoft (I) Pvt.Ltd. Kemin Industries South Asia Private Limited

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Kilburn Chemicals Ltd. Kilburn Electricals Ltd. Kilburn Office Automation Ltd. Kiran Global Chems Limited Kone Elevator India Pvt. Ltd. Kotak Mahindra Bank Ltd. Kothari Safe Deposits Ltd. Krebs Engineering Pvt. Ltd. Krishnan & Natarajan Kumar & Raj

L L & T Plastics Machinery Ltd. Larsen & Toubro Ltd. (ECC Division) Leitner Shriram Mfg. Ltd. Levergent Technologies India Pvt. Ltd. LNV Technology Private Ltd. Lornamead Corporate Services Private Ltd. Lovelock & Lewes Lucas Indian Service Ltd. Lucas TVS Ltd.

M M K Raju Consultants Private Limited Maa Kuthari Projects Pvt. Ltd. Macmillan Publishers India Limited Madras Auto Service (TVS Group) Madras Cements Ltd. Madras Consultancy Group Magtaan Travels & Holidays Pvt. Ltd. Mahindra World City Developers Ltd. Malaysia Airlines Mark Softech Private Limited Maveric Systems Limited MB Metallic Bellows Pvt. Ltd. Mecaplast India Pvt. Ltd. Medopharm Metallic Bellows (I) Pvt.Ltd. Metso Power India Private Limited Mira Organics and Chemicals Pvt. Ltd. Monarch Scientific Works MRF Ltd. MTL Instruments Pvt. Ltd.

N N C Rajagopal & Co. N Venkataraman & Associates Navis India Technologies Pvt. Ltd. NBC Weldmesh Pvt. Ltd. Necter Cybertech Pvt. Ltd. Needle Industries (I) Pvt. Ltd.

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Neophyll Agrisciences Pvt. Ltd. nice Neotech Medical Systems Pvt. Ltd. Nile Marine Services Nippon Paint (India) Pvt. Ltd. Nokia India Pvt. Ltd. Nubiola India (P) Ltd. Nutra Specialities Pvt. Ltd.

O Object Frontier Software Pvt. Ltd. Oceanic Edibles International Limited Ocrim International Technologies Pvt. Ltd. Ojus Power and Technologies Private Ltd. Olam Information Services Private Ltd. Omnex India Pvt.Ltd. Orchid Chemicals & Pharmaceuticals Ltd. Orient Green Power Co. Ltd. Oriental Hotels Ltd. Oriental Hydraulics Pvt. Ltd. Oriental Solutions Pvt. Ltd. Origin Foods Limited Origin ITFS Private Limited

P P K Power Appliances Private Ltd. Packet One Softwares Private Ltd. Paragon Polymer Products (P) Ltd. Parry Agro Industries Ltd. Patel Mohan Ramesh & Co. Pavo Power Engineering Pvt. Ltd. Peirce Leslie India Ltd. Pentland India Trading Private Ltd. Percept Printing Solutions (P) Ltd. Pet Moulds Private Limited Philips Electronics India Ltd. Piramal Healthcare Limited PKF Sridhar & Santhanam PL Worldways Ltd. Polaris Financial Technology Ltd. Portman India Private Limited Power Soaps Limited Prakash Foods & Feed Mills Private Ltd. Precision Controls Precision Equipments (Chennai) Pvt. Ltd. Price Waterhouse & Co. Proactive Solutech (India) Pvt. Ltd. Protech Consultants Pvt. Ltd. Protechsoft Systems Pvt. Ltd. Protechsoft Technologies Pvt. Ltd. Protection Engineering and Research Laboratories

ANNUAL REPORT 2011 -12


Prou India Engineering Private Limited PSL Ltd.

R R K Swamy BBDO Private Ltd. R Subramanian & Co. R Sundararaman & Co. Raj Petro Specialities Pvt. Ltd. Ram E&I Systems Pvt. Ltd. Ramesh and Ramachandran Rane (Madras) Ltd. Rane Brake Lining Ltd. Rane Engine Valve Ltd. Rane TRW Steering Systems Ltd. Rarefield Engineers Pvt. Ltd. Raunaq Steels Trading Private Limited Redington (India) Ltd. Repute Infotech and Enterprises Ltd. Resurgent Corporate Support Services Pvt. Ltd. Reva Phoenix Engineers & Consultants India Pvt. Ltd. Revathi Equipment Ltd. RGN Price & Co. RMC Readymix (India) (A Divn of Prism Cement Ltd.) Rotork Controls India Private Ltd. Royal Sundaram Alliance Insurance Co. Ltd. RRB Energy Ltd.

S S & S Power Switchgear Equipment Ltd. S Natesa Iyer & Co. Sai Titanium Products Private Ltd. Saint-Gobain Glass India Ltd. Saipem India Project Services Limited Same Deutz Fahr India P. Ltd. Samsung India Electronics Pvt. Ltd. San Media India Ltd. Sanco Trans Ltd. Sattva Logistics Private Ltd. Schwing Stetter (India) Pvt. Ltd. Seatrade Impex Private Limited Semanoor Technologies (P) Ltd. Semas Abacus & Mental Arithmetic Academy Pvt. Ltd. Shriram EPC Ltd. Shriram Transport Finance Co. Ltd. Simpson & Co. Ltd. Skylift Cargo (P) Ltd. Softeon India Pvt. Ltd. Spark Capital Advisors (I) Pvt. Ltd. Spearheaders Management Consultants Pvt. Ltd. SPI Cinemas Pvt. Ltd.

ANNUAL REPORT 2011 -12

Sri & Sri Associates Sri City (P) Limited Sri Krishna Sweets Stahl India Pvt. Ltd. Standard Chartered Bank State Bank of India Stonecolour Exim Private Limited Stud India Subbaraya Aiyar Padmanabhan & Ramamani Sundaram & Srinivasan Sundaram Asset Management Co. Ltd. Sundaram BNP Paribas Home Finance Ltd. Sundaram Clayton Ltd. Sundaram Finance Ltd. Sundram Fasteners Ltd. Super Auto Forge Private Ltd. Supreme Petrochem Ltd. Surana & Surana International Attorneys Swamy Associates Switzer Instrument Ltd. Symrise Pvt. Ltd.

T T V Sundram Iyengar & Sons Ltd. T&B International Pvt. Ltd. T. Stanes & Co. Ltd. TAFE Access Ltd. Takraf India Private Ltd. Talbros Automotive Components Ltd. TANFAC Industries Ltd. Teamco Hitech Engineering Limited Tebma Shipyards Ltd. Technology Associates Tecpro Systems Limited Tee Cee Enterprises Temenos India Private Ltd. The Hongkong & Shanghai Banking Corpn. Ltd. The India Cements Ltd. The Karur Vysya Bank Ltd. The United Nilgiri Tea Estates Co. Ltd. Thejo Engineering Ltd. Thomson Press (India) Ltd. Thyssenkrupp Industries India Pvt. Limited Tidal Wave Infotech Private Ltd. Tide Water Oil Co. (I) Ltd. Tionale Impex Pvt. Ltd. Titanium Tantalum Products Ltd. ToCheungLee Stationery Mfg. Co. Pvt. Ltd. TPS Builders Limited

66


Tractors & Farm Equipment Ltd. Treeline Business Solutions Private Limited Trichy Distilleries&Chemicals Ltd. Trivitron Healthcare Private Ltd. TTK Healthcare Limited TTK-LIG Limited Turbo Energy Ltd. TVS Logistics Services Ltd. TVS Motor Company Ltd.

W

Ucal Products Private Ltd. Udwadia & Udeshi Ultra Tile Private Limited Ultratech Cement Ltd. United India Insurance Company Ltd. United Liner Agencies of India Pvt. Ltd. United Spirits Limited Unity Forge Private Ltd.

W S Industries (I) Ltd. WABCO India Limited Walker, Chandiok & Co. WAMEC India Water Jet Germany Pvt. Ltd. Wavin India Ltd. Weiss Rohlig India Pvt. Ltd. Wheels India Ltd. WIMCO Ltd. Winsar Infosoft Pvt. Ltd.

V

X

V Ramachandran VA Tech Wabag Ltd. Vaishnavi Freight Logistics (P) Ltd. Vanilla Holdings & Investments Pvt. Ltd. VICI Engineers and Consultants Pvt. Ltd.

XS Real Properties Private Ltd.

Affiliated Members

Honorary Members:

Army Welfare Placement Node – HQ ATNK & K Area Ambattur Industrial Estate Manufacturers’ Association Energy&Fuel Users’ Association of India Indian Fishnet Mfrs’ Association Industrial Waste Management Association Institute for Financial Management and Research International Enterprise Singapore Madras Stock Exchange Ltd. MOP Vaishnav College for Women Nani Palkhivala Arbitration Centre National Management School The Cocanada Chamber of Commerce The Karur Textile Manufacturers Exporters’ Association The Madras Electric Trades Assn. The Madras Piecegoods Merchants’ Association The Malabar Chamber of Commerce The Netherlands Business Support Office The Planters’ Association of Tamilnadu The United Planters’ Assn. of Southern India Trade Commission of Denmark Tuticorin Chamber of Commerce & Industry

Chief Post Master General, Tamil Nadu General Manager, Southern Railway Chief General Manager, Chennai Telephones Chairman, Chennai Port Trust Chief Commissioner of Customs, Chennai Mr C S Krishnaswami,Chennai

U

67

Victor Grace & Co. Victoria Technical Institute Viking Shipping (Chennai)Pvt.Ltd. Virgo Polymers (I) Ltd. Visteon Automotive Systems India Pvt. Ltd. Voltas Ltd. Vyosoft Solutions Pvt. Ltd.

Y Yazaki Wiring Technologies India Pvt. Ltd.

Z Zamil Steel Engineering India Pvt. Ltd.

ANNUAL REPORT 2011 -12


PAST CHAIRMEN/PRESIDENTS

(From the year 1996 the designation of Chairman was changed to President.)

1836

Mr John Alves Arbuthnot

1857

Mr William Hamilton Crake

1887

Mr S R Turnbull

1837

Mr John Alves Arbuthnot Mr John Williams Dare

1858

Mr John Vans Agnew

1888

1859-60

Mr Henry Nelson

Mr S R Turnbull Mr D Rasbotham

1838

Mr John Williams Dare Mr William Scott Binny

1861

Mr Alfred John Byard Mr William Reirson Arbuthnot

1889-90

Mr J A Boyson

1891-92

Mr S R Turnbull

1839

Mr William Scott Binny Mr John Line

1862

Mr William Hamilton Crake Mr Robert Orr Campbell

1893-94

Mr J A Boyson

1840

Mr John Line Mr James Scott

1895

1863

Mr William Hamilton Crake

Mr G G Arbuthnot Mr G L Chambers

1841

Mr James Scott

1864

Mr Alfred John Byard Mr Henry Tolputt

1896

Mr G L Chambers

1842

Mr James Scott Mr John Utley Ellis

1897

Mr G G Arbuthnot

1865

Mr Henry Tolputt Mr John Young

1898

Mr John Utley Ellis Mr J Ouchterlony

Mr G G Arbuthnot Mr S R Turnbull

1866-67

Mr Alexander Forrester Brown

1899

1844

Mr J Ouchterlony

1868

Mr Alexander Forrester Brown Mr William Rierson Arbuthnot

Mr S R Turnbull Mr E.P. Vans Agnew

1845

Mr J Ouchterlony Mr James Thomson

1900

Mr G G Arbuthnot

1869

Mr Alfred John Byard

1901

Mr James Thomson Mr John Binny Key

Mr John Charles Loch

Sir George Arbuthnot Mr A J Yorke

1870-71

Mr Patrick Macfadyen

1902

Mr A J Yorke

1847

Mr John Binny Key Mr George Arbuthnot

1872

Mr Robert Chillingworth Walker

1903

1848

Mr George Arbuthnot

1873

Mr Alexander Forrester Brown

Sir George Arbuthnot Mr H Scott

1874

Mr Patrick Macfadyen

1904

Sir George Arbuthnot

1875

Mr Clement Simpson

1905

Mr A J Yorke

1876

Mr Patrick Macfadyen

1906

Mr A J Yorke Mr V G Lynn

1877

Mr Patrick Macfadyen

1907

Mr V G Lynn

1908

Mr V G Lynn Mr A J Yorke

1843

1846

1849 1850

Mr J Ouchterlony Mr Henry Nelson Mr William McTaggart Mr William Urquhart Arbuthnot

1851

Mr J Ouchterlony

Mr John Jones

1852

Mr Joseph Goolden

1878

Mr Alexander Mackenzie

1853

Mr James Scott Mr J Ouchterlony

1879

Mr Alexander Mackenzie

1909

Mr V G Lynn

1880

Mr Patrick Macfadyen

1910-11

Mr Hugh Fraser

1854

Mr James Scott Mr Robert Orr Campbell

1881-82

Mr Clement Simpson

1912

Mr A D Jackson

1855

Mr Robert Orr Campbell

1883-84

Mr James Charles Shaw

1913

Mr A D Jackson Mr W B Hunter

1856

Mr J Ouchterlony Mr John Binny Key

1885

Mr John Alexander Boyson

1914

1886

Mr George Gough Arbuthnot

Mr A D Jackson Sir Hugh Fraser

ANNUAL REPORT 2011 -12

68


1915-17

Mr Gordon Fraser Mr C E Wood

1956

Mr J R Galloway

1994-96

Mr L Lakshman

1918-19

Sir Gordon Fraser Mr C E Wood

1957

Mr G N Noel-Tod, C.B.E

1996-98

Mr N Srinivasan (ICL)

1958

Mr E J M Leigh

1998-99

Ms Mallika Srinivasan

1920-21

Mr James Simson

1959

Mr P Hadfield

1999-2000 Mr G K Raman

1922

Sir James Simson Mr W.Alexander

1960

Mr E F G Hunter

2000-2001 Mr L Sabaretnam

1961

Mr R M King

2001-2002 Mr N Ramachandran

1923

Sir Gordon Fraser Mr C E wood

1962

Mr B B Dod

2002-2003 Mr K V Shetty

1924-25

Mr T M Ross

1963

Mr M J Edwards, O.B.E.

2003-2004 Mr B Natraj

1926-27

Mr C E Wood

1964

Mr D M Law

2004-2005 Mr Murali Venkatraman

1928

Mr K Kay

1965

2005-2006 Mr V Balaraman

1929-30

Mr H F P Hearson

Mr A M M Murugappa Chettiar (till 31st October 1965) Mr A W Stansfeld

1931

Mr F Birley

1966

Mr A W Stansfeld

2007-2008 Mr Arun Bewoor

1932

Mr K Kay

1967

Mr John K John

2008-2010 Mr Srinivasan K Swamy

1933

Mr W M Browning

1968

Mr E W D Jeffares, M.C.

1934

Mr W M Browning

1969

Mr A M M Arunachalam

1935

Sir William Wright, O.B.E.

1970

Mr M E Bourcier

1936

Mr F Birley

1971

Mr C P Featherstone

1937

Mr G A Bambridge

1972

Mr N S Bhat

1938

Mr D M Reid, O.B.E.

1973

Mr A K Sivaramakrishnan

1939

Sir Gerald Hodgson

1974

Mr M M Muthiah

1940

Sir Robert Denniston

1975

Mr P D Whiteley

1941-43

Mr J Nuttal

1976

Mr C D Gopinath

1944

Mr C Elphinston

1977-78

Mr J K Clubwala

1945-46

Mr H S Town

1979-80

Mr A Sivasailam

1947

Mr W T Williams

1981-82

Mr M K Kumar

1948

Mr H I Wonfor, C.B.E.

1983-84

Mr K V Sitaram

1949

Mr B W Batchelor

1985-86

Mr N Sankar

1950

Mr H I Wonfor, C.B.E.

1987

Mr M V Murugappan

1951

Mr H S Macqueen

1988

Mr Hari Eswaran

1952-53

Mr H I Wonfor, C.B.E.

1989-91

Mr V Chidambaram

1954

Mr R E Castell, C.B.E.

1991-93

Mr N Venkataramani

1955

Mr T Rogers

1993-94

Mr N Srinivasan (F & R)

69

2006-2007 A Sankarakrishnan

ANNUAL REPORT 2011 -12


R.G.N PRICE & CO. Chartered Accountants Phone: 28413633 & 28583494 Telefax: 28544569 E-mail: price@vsnl.com Offices at: Ernakulam, Quilon, Calicut Mumbai, Bangalore and New Delhi

Simpson’s Building Post Box No.335 861, Anna Salai Chennai 600 002

24th May 2012

Audit Report to the Members of The Madras Chamber of Commerce & Industry We have audited the attached Balance Sheet of The Madras Chamber of Commerce & Industry as at March 31, 2012 and also the Income and Expenditure Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Chamber. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We report that: i)

We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of our audit.

ii)

In our opinion, proper books of account as required by law have been kept by the Chamber, so far as appears from our examination of those books.

iii)

The Balance Sheet and Income and Expenditure Account dealt with by this report are in agreement with the books of account.

iv)

In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Tamil Nadu Societies Registration Act, 1975 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the Balance Sheet, of the state of affairs of the Chamber as at March 31, 2012 and b) In the case of Income and Expenditure Account, the excess of income over expenditure for the year ended on that date. For R G N Price & Co. Chartered Accountants Sd/ Mahesh Krishnan Partner M. No. 206520 FR No.002785S

ANNUAL REPORT 2011 -12

70


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY BALANCE SHEET AS AT MARCH 31, 2012 Schedule

As at March 31,2012 Rs

As at March 31,2011 Rs

SOURCE OF FUNDS

General Fund

1A

52018489

49033380

Chamber’s 175th Year Celebration Fund

IB

0

1139869

Total

52018489

50173249

APPLICATION OF FUNDS Fixed Assets

2

Gross Block

30917759

30476328

Less : Depreciation

5907279

4411115

Net Block

25010480

26065213

Investments

26500000

24200000

3

Current Assets, Loans and Advances Sundry Debtors

4

66500

19775

Cash and Bank balances

5

848832

856229

Other Current Assets

6

798728

700625

Loans and Advances

7

701488

276764

2415548

1853393

Less : Current Liabilities and Provisions Liabilities

1907539

1945357

8

Net Current Assets

508009

-91964

Total

52018489

50173249

Notes on accounts

12

The schedules referred to above form an integral part of the Balance Sheet. Sd/- Sd/- Sd/- President Vice President Secretary General

This is the Balance Sheet referred to in our report of even date.

For R.G.N. PRICE & CO. Chartered Accountants

Chennai 24 th May 2012

Sd/- Mahesh Krishnan Partner M. No. 206520 FR No.002785S

71

ANNUAL REPORT 2011 -12


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED MARCH 31,2012 Schedule

Year ended March 31,2012 Rs

Year ended March 31,2011 Rs

INCOME

Subscription

5750250

5284150

Entrance Fee

58000

30000

Seminar Income

1258227

2340902

Other Income

9

8830590

7390744

15897067

15045796

EXPENDITURE

Employee Costs

10

6170593

4928806

Other Expenses

11

5589004

6209168

Depreciation

1580204

635601

13339801

11773575

Excess of Income over Expenditure for the year transferred to General Fund

2557266

3272221

Notes on accounts

12

The schedules referred to above form an integral part of the Income and Expenditure account. Sd/- Sd/- Sd/- President Vice President Secretary General

This is the Income & Expenditure account referred to in our report of even date.

For R.G.N. PRICE & CO. Chartered Accountants

Chennai 24 th May 2012

Sd/- Mahesh Krishnan Partner M. No. 206520 FR No.002785S

ANNUAL REPORT 2011 -12

72


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS SCHEDULE 1 A

As at March 31,2012 Rs

As at March 31,2011 Rs

49033380

40761159

GENERAL FUND

As per last Balance Sheet

Add

Transfer of surplus from Chamber’s 175th Year Celebrations

427843

5000000

Surplus from Income & Expenditure account for the year

2557266

3272221

52018489

49033380

1139869

5000000

Special contribution by members

555500

2011500

1695369

7011500

Expenditure incurred

1267526

871631

Surplus transferred to General Fund

427843

5000000

--

1139869

1A

SCHEDULE 1 B Chamber’s 175th Year Celebrations Fund

As per last Balance Sheet

Add :

Less :

1B

73

ANNUAL REPORT 2011 -12


ANNUAL REPORT 2011 -12

74

1687915

305018

497692

861767

Furniture and Fixtures

Office equipments

Computers

Vehicles

30476328

2218158

Electrical Installations

5805508

525471

-

224328

205350

71373

-

-

84040

-

-

84040

-

-

-

-

Buildings

24420

19100270

Land- Freehold

30917759

861767

722020

426328

1759288

2218158

5805508

19124690

Cost as at 31.3.2012

4411115

129385

353041

158108

345671

148363

3276547

-

Upto 31.3.2011

Gross Block

Cost as at Additions Deletions 01.04.2011

Description

FIXED ASSETS

SCHEDULE 2

1580204

214542

75530

123593

358111

551378

257050

-

-

-

-

-

84040

-

-

84040

For the Deletions Year

Depreciation

THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS

5907279

343927

428571

197661

703782

699741

3533597

-

Upto 31.3.2012

25010480

517840

293449

228667

1055506

1518417

2271911

19124690

As at 31.3.2012

26065213

732382

144651

146910

1342244

2069795

2528961

19100270

As at 31.3.2011

Net Block

(Figures in Rupees)


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS

As at March 31,2012 Rs

As at March 31,2011 Rs

SCHEDULE 3 Investments Unquoted: Fixed Deposits with

Sundaram BNP Paribas Home Finance Ltd

5000000

5000000

Tamil Nadu Power Finance & Infrastructure Development Corporation Limited

3000000

3000000

Term Deposits held with Banks

18500000

16200000

26500000

24200000

Debts Outstanding for a period less than six months

66500

19775

66500

19775

2815

6291

On Current Account

846017

849938

848832

856229

Total

SCHEDULE 4 SUNDRY DEBTORS (Unsecured- Considered Good)

SCHEDULE 5 CASH AND BANK BALANCES

Cash on hand

Balance with Scheduled Banks

75

ANNUAL REPORT 2011 -12


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS

As at March 31,2012 Rs

As at March 31,2011 Rs

SCHEDULE 6 OTHER CURRENT ASSETS (Unsecured- Considered Good)

Interest accrued on

Investments

662051

591332

Tax deducted at source

136677

109293

798728

700625

SCHEDULE 7 LOANS AND ADVANCES (Unsecured- Considered Good)

Deposits

587309

251389

Prepaid expenses

114179

25375

701488

276764

SCHEDULE 8 LIABILITIES

Sundry Creditors

592289

527357

Subscription, Advertisement & Seminar Fees received in advance

115250

218000

Rent Deposit

1200000

1200000

1907539

1945357

ANNUAL REPORT 2011 -12

76


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS

Year ended March 31,2012 Rs

Year ended March 31,2011 Rs

SCHEDULE 9 OTHER INCOME Interest on Investments Rent Fees for Certificate of Origin Advertisement Income Profit on sale of Fixed Assets Miscellaneous Income

2274100 2437400 3510270 140640 20000 448180 8830590

2130425 2125986 2444635 84930 230000 374768 7390744

SCHEDULE 10 EMPLOYEE COSTS Establishment expenses Contribution to Provident & other funds Staff Welfare Expenses

5560627 468856 141110 6170593

4249334 523611 155861 4928806

266545 909770 767034 713363 186254 137262 19941 146599 600687 480459 112765 37440

260000 1971467 686511 583982 176266 113069 21942 176096 273650 548469 121221 42020

33090 39711 605541 400000 132543

22060 43017 341746 461250 366402

5589004

6209168

SCHEDULE 11 OTHER EXPENSES Subscription to Associations Expenses on seminars and conferences Meeting expenses Printing & Stationery Electricity Charges Telephone Charges Books & Periodicals Travel Expenses Rates and Taxes Repairs and Maintenance Postage and courier Insurance Payment to Auditors - Audit Fee - Other services Legal & Professional fees Lease Rent Miscellaneous Expenses

77

ANNUAL REPORT 2011 -12


THE MADRAS CHAMBER OF COMMERCE & INDUSTRY SCHEDULES FORMING PART OF ACCOUNTS SCHEDULE 12

Notes on Accounts 1. SIGNIFICANT ACCOUNTING POLICIES : Accounting Convention : The financial statements are prepared under historical cost convention. Revenue Recognition : Accrual basis of accounting is followed except for subscription income, which is accounted on receipt basis. Fixed Assets : Fixed assets are stated at cost. Cost includes acquisition and installation expenses incurred to bring the asset to its intended use. Depreciation : Depreciation is provided on straight line method on the basis of the estimated useful lives as determined by the Chamber. In respect of additions and deletions, depreciation is restricted to the period of use. The rates of depreciation are as under. Building 10% Electrical Installations 25% Furniture & Fixtures 25% Office Equipment 25% Computers 33% Vehicles 25% Investments : Long term investments are stated at cost. Premium on purchase is expensed in the year of purchase. Retirement benefits : Liability towards gratuity and superannuation are determined in accordance with the schemes formulated by the Chamber and contribution is made to the respective funds administered by the Life Insurance Corporation of India as per the rules of the aforesaid scheme. All contributions are charged to revenue when due. With regard to leave encashment, provision is made on the basis of encashment of leave upto a maximum of 180 days at the time of retirement or reaching the age of superannuation calculated at the last drawn salary rates as per Chamber policy. 2. NOTES a. Rates & Taxes : Rates and taxes include Rs 3,31,537/- being the demand raised by Corporation of Chennai for the period 2007-08 to 2011-12. A representation has been made to the Corporation against the waiver/rectification of the demand. However provision has been made for the entire amount in the accounts. b. There is no liability to income tax as the Chamber is registered under Section 12 A of the Income Tax Act. Pursuant to the cancellation of the registration u/s 12AA(3) of the Income Tax Act, the Income Tax department has raised a demand of Rs 15,55,477/- for the accounting year 2008-09. The matter is being agitated by the Chamber in a Writ Petition which has been admitted by Hon’ble High Court of Madras and a stay has been obtained. c. The expenditure of the Skill Development Centre which has been launched during the year amounting to Rs 12,58,421/- has been allocated under the respective heads of accounts. d. Previous year’s figures have been regrouped/reclassified wherever necessary to conform to the presentation of current year’s accounts.

ANNUAL REPORT 2011 -12

78


MCCI VOCATIONAL TRAINING AND SKILL DEVELOPMENT CENTRE One of the major challenges faced by the industry and the economy as a whole is the non-availability of skilled manpower. As per estimates, in the State of Tamilnadu, around 3 lakh graduates are passing out every year and hardly 20% of them are employable. In addition, there is the least privileged community with less or no formal education, who do not have an easy access to labour market. This creates a paradox that on the one side industries and businesses are looking for manpower and on the other side there is a huge pool of people unemployed and lack required skills and thereby lack employability. To address this major issue and as a follow up of our War for Talent initiative launched a few years ago, the Chamber initiated a very unique endeavour of setting up a Vocational Training and Skill Development Centre. Thanks to the farsightedness of its predecessors, the Chamber has acquired land in the hot industrial belt at Koppur village, close to Sriperumbudur and Tiruvallur. As a lasting memory to our 175th year celebrations, it was decided to set up a first of its kind Vocational Training Centre at its land and the foundation stone for the same was laid electronically on 29th September 2011 by His Excellency the Governor of Tamilnadu. The Centre is working towards having a full fledged vocational training institute where three types of programmes would be offered;

 

Long term technical skill courses affiliated to reputed Government/overseas and other agencies on skills like welding, fitter, electrician, etc. Customised Skill upgradation courses for workers and employees already in employment with companies Training to the less privileged local community to improve their technical and life skills so that they become employable in industry and trade.

A detailed study was undertaken before venturing into this initiative to ensure the buy-in from industries. While efforts are on to get construction started in our own facility, the Chamber has soft launched some of the programmes in rented premises in Chembarambakkam where courses like basic fitter practices, computer skills, spoken English and others are being organized. The courses are also supplemented with a special module of soft skills for extended durations to make the trainees employment ready. As a part of this, a well thought out set of training materials has been developed by the Chamber, both in English and Tamil, on topics like Time Management, Communication Skills, etc. This venture has been taken up with the twin objective of helping the industry as well as the community. Besides the brick and mortar trainings, there are also special programmes developed like the foundation course in Exim Procedures which are offered by the Chamber under the Skill Development Initiative now. Tailor made programmes are also offered to students, both engineering and non-engineering, covering aspects like personality development, transformation from students to employees etc., to enhance their employability. Training is also organized for freshers recruited by Industries, to give them a basic knowledge of practical business aspects . The updated course contents are developed in consultation with concerned industries and hence the time and effort on training new employees can be substantially reduced. The MCCI Skill Development Centre, once fully developed, would be a flagship activity of the Chamber and would be a great boon to the members. We seek the members’ support in making this evolve as a Centre of Excellence.

79

ANNUAL REPORT 2011 -12


In the words of John Alves Arbuthnot, the First Chairman of the Chamber... “...watch over and protect the interests of trade; receive and collect information on all matters of mercantile interest bearing upon the removal of grievances and promotion of the common good; receive references on matters of custom or usage in doubt or dispute, decide on the same and record the decisions made for further reference; and to form by that and other code of practices whereby the transaction of business by all companies engaged in it are simplified and facilitated�.

Karumuttu Centre, I floor, 634 Anna Salai, Nandanam, Chennai - 600035 Tel: 24349871/24349720 Email:madraschamber@madraschamber.in ANNUAL REPORT 2011 -12 www.madraschamber.in

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Mcci final annual_report2012  

Mcci final annual_report2012

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