SSAR & ASSOCIATES, Chartered Accountants SSAR & ASSOCIATES, Chartered Accountants • Knowledge Knowledge about the about the Campaigns Campaigns • Useful Business Practices for SMEs Useful Business Practices for SMEs • Opportunities available Opportunities available for us as for us as CAs CAs SSAR & ASSOCIATES, Chartered Accountants SSAR & ASSOCIATES, Chartered Accountants
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–– Concepts Concepts (Awareness , Progress so far, The Need of the (Awareness , Progress so far, The Need of the Programs?)Programs?)
•• Broad SegmentsBroad Segments
–– SMESME
–– StartStart‐‐upsups
•• Role & Opportunities for CAsRole & Opportunities for CAs
–– ThreatsThreats
–– OpportunitiesOpportunities
•• PrePre‐‐requisites requisites for Programs for Programs successsuccess
–– Threats before SMEsThreats before SMEs
–– Useful Business Practices for Better ProfitsUseful Business Practices for Better ProfitsSSAR & ASSOCIATES, Chartered AccountantsSSAR & ASSOCIATES, Chartered Accountants
The Need for Learning & The Need for Learning & Giving BackGiving Back
CACA
DIRECT ACCESS TO CEO / OWNERSDIRECT ACCESS TO CEO / OWNERS
CAN BRING CHANGE IN ORGANISATION FOR BETTERCAN BRING CHANGE IN ORGANISATION FOR BETTER
KNOWS THE ENTIRE
BUSINESS / OPERATIONS
EXPERT KNOWLEDGEEXPERT KNOWLEDGE
• ACCOUNTING
• BUSINESS PROCESSES
• ASSURANCE
• COMPLIANCES
• FINANCE
IncreasingIncreasing
ShrinkingShrinking
ShrinkingShrinking
ASSURANCE SERVICES
Low Margins for Indian FirmsLow Margins for Indian Firms
Acc. StandardsAcc. Standards
More ResponsibilitiesMore Responsibilities
Risks (NFRA + Special Courts)Risks (NFRA + Special Courts)
DOCUMENTATION
COMPLIANCE OFFICER
CLIENT’SCLIENT’SOUROUR
Building PartnershipBuilding Partnership
MY GROWTH = CLIENT’S GROWTHMY GROWTH = CLIENT’S GROWTH
Mentors +
Professionals
Processes need to be built / reviewed / overhauled in SMEs / Start‐ups by CAs Remunerative Management Consultancy
Huge Trainer Opportunities with Govt. Huge Trainer Opportunities with Govt. CampaignsCampaigns
Questions?Questions?
Q1: Why should I look into business consultancy when the SME doesn’t value these services?
Q2: Is there a scope of hike in fees in traditional services?
Q3: I have never provided such services and I will work when demanded by the Client in Future
Is it the Right Approach?
Q4: Is it the Right Time?
Govt. CampaignsGovt. CampaignsCampaign Launch Date Target
Source: Assessment of State Implementation of Business Reforms, September 2015 published by DIPP
DIPP InitiativesDIPP Initiatives
• Constitution of 11 members ‐ Expert Committee under DIPP (06.04.2015)
– Business Reform Action Plan for States/UTs Implementation Guide for States (Dec, 2015)
– Recommendation to States (340 Final Points)
– Largely State Subjects
1. Access to Information and Transparency Enablers 2a. Single Window2b. Online Single Window System3a. Availability of land3b. Land Allotment 3c. Property Registration ‐ Enablers 3d. Property Registration 4a. Construction Permit Enablers 4b. Building Plan Approval 4c. NOC for tree felling from Tree Authority/ Appropriate
Authority (prior to commencement of construction activities)
4d. NOC for Fire Department (prior to commencement of construction activities)
5a. Environmental Registration Enablers 5b. Consent to Establish under Water (Prevention and Control
of Pollution) Act, 19745d. Authorization under Hazardous Waste (Management and
Handling) Rules, 1989 5e. Consent to Operate under Water (Prevention and Control
of Pollution) Act, 1974 5f. Consent to Operate under Air (Prevention and Control of
Pollution) Act, 19816a. Labour Regulation Enablers6b. Registration and grant of license under The Factories Act,
19486c. Approval of plan and permission to construct/extend/or
take into use any building as a factory under the Factories Act, 1948
6d. License under The Indian Boilers Act, 1923
6e. License for contractors under provision of The Contracts Labour (Regulation and Abolition) Act, 1970
6f. Registration under The Shops and Establishment Act6g. Registration of principal employer's establishment under
provision of The Contracts Labour (Regulation and Abolition) Act, 1970
6h. Registration under The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
6i. Renewal of license under The Factories Act, 1948 6j. Renewal of license under The Indian Boilers Act, 1923 6k. Renewal of license for contractors under provision of The
Contracts Labour (Regulation and Abolition) Act, 1970 6l. Renewal under The Shops and Establishment Act7a. Obtaining Electricity Connection 7b. Obtaining water connection
8a. Online tax return filing 8b. Online tax payment8c. Tax enablers 8d. Registration for Value Added Tax (VAT)8e. Registration for Central Sales Tax (CST) 8f. Registration for Professional Tax 8g. Registration for Entry Tax8h. Registration for Entertainment Tax 8i. Registration for Luxury Tax 9a. Inspection reform enablers 9b. Inspection of the business premises for VAT (Value
Added Tax) registration 9c. Inspection by Building Proposal Office/ relevant
agency as part of obtaining construction permit
9d. Inspection by Appropriate Authority for felling trees (prior to commencement of construction activities)
9e. Inspection by Building Proposal Office/ relevant agency as part of obtaining occupancy certificate
9f. Compliance Inspections under The Equal Remuneration Act, 1976
9g. Compliance Inspections under The Factories Act, 1948 9h. Compliance Inspection under The Minimum Wages Act,
1948 9i. Compliance Inspection under The Shops and
Establishments Act (as applicable9j. Compliance Inspection under The Payment of Bonus Act,
19659k. Compliance Inspection under The Payment of Wages Act,
1936
9l. Compliance Inspection under The Payment of Gratuity Act, 1972
9m. Compliance Inspection under The Contract Labour (Regulation and Abolition) Act, 1970
9n. Compliance Inspection under The Water (Prevention & Control of Pollution) Act, 1974
9o. Compliance Inspection under The Air (Prevention and Control of Pollution) Act, 1981
• Security clearances on IL applications by MHA within 12 weeks
• 29 Services Linked on Ebiz portal
• Limiting documents for Export & Import 3
• …….
Implementations so farImplementations so far
Companies Act, 2013
• Integrated process of incorporation of a company (INC‐29)
• Companies (Amendment) Act, 2015
• Notifications‐ 05.06.2015 (Exemptions to Pvt. Ltd. Cos.; Govt. Cos.)
Implementations so farImplementations so far
Income‐tax• Budget, 2016• Appeal and Cross‐Objections before ITAT & HC – revision
in limit (Dec, 15)• Online Application before CIT (Not. 11/2016 dt. 01.03.16)• E‐Assessments (Reduction of interface)• Mandatory passing of 154 Notice (Instruction 2/2016 dt.
15.02.16)• Timeline for verification of Sec. 245 demand and issue of
refunds (30 D 15 D) (Office Memorandum‐07.03.2016)• Taxability of surplus on sale of shares and securities ‐
Capital Gains or Business Income – (Circular 6/2016‐29.02.16)
• Requirement of CA Certificate (Not.93/2015 dt.16.12.15)
• Sec. 80JJAA
Implementations so farImplementations so far
Income‐tax – Sec 80 JJAA• 30% of additional wages paid to new regular workmen in a factory for 3 years
• Budget 2016
– Min. days of Employment: 300 Days 240 days
– 10% increase in number of employees deleted
– First year of business: NA 30 % on all Salary
– …….
vs.
Implementations so farImplementations so far
Customs & Excise (Budget, 2016)• Changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components and certain other goods in sectors – Information technology hardware, – capital goods, – defence production, – textiles, – mineral fuels & mineral oils, – chemicals & petrochemicals, – paper, – paperboard & newsprint, – Maintenance repair and overhauling [MRO] of aircrafts and ship repair
ZEDZED• MSMEs contribute nearly 8% to the country's GDP, 45% to manufacturing output and 40% to exports.
• India has close to 35 million MSMEs with 95% employing less than 10 people. The rest 5% employs 10 to 100 people.
• Model to rate and handhold 1 million SMEs over the next 3 ‐ 5years to deliver top quality products using clean technology
•• VisionVisionTo enable the advancement of Indian industry to a position of eminence in the global marketplace and leverage India’s emergence as the world’s supplier through the ‘Made in India’ mark.
As on 15 February 2016• the Indian Leather Development Programme
– Trained ‐51,216 youth in the past 100 days (Plan‐1,44,000 annually)
• Four new branches of Footwear Design & Development Institute —at Hyderabad, Patna, Banur (Punjab) and Ankleshwar (Gujarat) — are being set up to improve training infrastructure– The industry undergoing acute skill shortage and most of the people trained are being absorbed by the industry
• No Job for 20‐33% out of the 1.5 million engineering graduates passing out every year run (http://dazeinfo.com)
• 65 per cent passed students are jobless ‐Campus Preparedness Survey 2015(Source: http://liveonindia.com)
• 34% employable (Survey of 1,00,000 candidates across India) – India Skills Report ‐ 3rd CII National Conference on Skill Development
INDIA INDIA (Before General Election, 2014)(Before General Election, 2014)
Global ShareGlobal Share
Brand IndiaBrand India
• Rich Heritage
• Strong Cultural Diversity
• Huge Customer Base
• Youth Population
Indians AbroadIndians Abroad• 15% of startups in Silicon Valley being founded by Indians (2014 study by Professor VivekWadhwa)
• Sundar Pichai, CEO, Google• Satya Nadella, CEO, Microsoft• Vinod Khosla, Co‐founder, Sun Microsystems• Rashmi Sinha, Co‐founder, SlideShare• Shantanu Narayen, CEO, Adobe• Indra Nooyi, CEO, Pepsico• Srikanth ‘Sri’ Srinivasan, Judge for the US Court of Appeals for the District of Columbia Circuit (17.02.2016)
• The Most Innovative and Economical Method to accomplish the desired task by unusual / unimaginative means & ways
• Juggad + Quality Processes need to be promoted though Start‐ups and spread Globally
CHALLENGES BEFORE SMEsCHALLENGES BEFORE SMEs
Become a GUIDE to CEO
Become a COACH to CEO
Department / Functions Invisible Elements Live Wires Extended Team
OrganisationStructure
Production Vacuum / Demand
Leadership Computer‐isation
Customers
Marketing Store Branding New Market MIS Suppliers
Purchase Compliance Strategy Product Pricing Communication
Accounts Treasury CSR Risk Mgt. Budgets
Finance Quality Quality (Value) Fixed Asst. Mgt.
Investment Training KPIs/ Dashboards
Product Strategy
Personnel Public Relations
Document‐ation
Crisis Mgt.
R&D Audit Personal Life Asset & Data Security
Administration Packaging & Labeling
Logistics PR
SSAR & ASSOCIATES, Chartered accountantsSSAR & ASSOCIATES, Chartered accountantsGrow More …. Grow FasterGrow More …. Grow Faster
• No Organisation can work without Team unless Fully Automated
• Machines don’t create Life BUT People DO in an Organisation
• Primary Difference between Winning & Losing Team is LEVEL OF MOTIVATION “Chak De” creates WONDERS UNEXPECTED gets created
• REPLICATION OF PERFECTION is the need of hour
• Expansion can HAPPEN with IN‐HOUSE BATTERY OF LEADERS
• Team needs to be NURTURED
SSAR & ASSOCIATES, Chartered accountantsSSAR & ASSOCIATES, Chartered accountantsGrow More …. Grow FasterGrow More …. Grow Faster
• Hire People with Quality Attitude
• Constantly Identify Leaders for managing Depts / Responsibilities
• Alignment of Personal & Departmental Goals with OrganisationGoals by Constant Reinforcement