Sunday, 23 July 2017

Fiscal Year: Is it just a change in date?



India got independence 70 years back but parties like Congress did not let go of many British Era rules. Mentally they made us follow British culture even though we were an independent country. The Fiscal year from April to March is an example of this.

The History behind this goes back when Mughals ruled our country. They hardly bothered of public at large moved to cooler places on the onset of summers which starts mid March. Hence they shall lay out all taxation rules and finances by February so that they can enjoy summers in cool places. Akbar for example ruled from Lahore during summers. Jahangir also continued the tradition by ruling from Srinagar during summer months and would return to Agra only in July during Monsoons

Britishers carried forward this legacy. They invaded India but the hot temperature of Surat, Kolkatta and then Delhi was uncomfortable to them. So they moved to Shimla during months of summer after allocating budget expenses.

At the dawn of 1947 and post constitution Nehru dynasty never tried to question this tradition and kept the Fiscal year same.By mid-May New Delhi starts heating upto 40 degree celcius, thus giving chance to most Ministers and MPs of Central Govt and State Governments to commence their foreign tours after budget session during the May-June/July to Western cooler nations

 while the rest of the nation runs dry taps from May to June or early July. Most of the MPs, Ministers and several committee members go on European or Western nation tours go for studying garbage collection in cities, handling of sewage and drainage problems in domestic and industrial places, studying effective and efficient safe public transportation in developed nations etc.


70 years have passed but no one bothered to check this tradition. Finally when the country is in right hands the tradition is going to change. FM Mr Arun Jaitley announced his intentions to change the year to January to December from 2018

Now how does it help? It is just a date isn't it? 

No it is game changer. Here it is how?

India Monsoons start from Early May and last till September. Changing the Fiscal year means budget to be presented by November. Till date Budget had to presented with the help of weather department prediction on monsoon which is too difficult to predict by February

Rural India forms the backbone of Indian economy. Presenting Budget in November shall give exact figures of agriculture crops and allocation of expenses to agriculture and irrigation. 

It shall also help FM to know the rise and fall of demand of  consumer durables, auto sales and the 
like as major demand for this comes from Rural areas. This shall help him decide various taxes and give stability to these companies.

As a Chartered Accountant I know how difficult it is for companies to make two financial statements . One as per Fiscal year for purpose of Income Tax and other to align accounts with foreign partners where in most cases the year is calendar year. It is a big relief for them 

Further it may try to convince at global level to have a uniform financial year to save subsidiaries of foreign companies from duplicating work. As it requires to prepare financial statements and conduct audits twice in a year, first to comply with the foreign parent company and then for complying with local laws.

It also makes it difficult to match the international transactions leaving a big room for manipulation.

And most importantly, for Indians finalising accounts, conducting audits and complying with various tax laws would be more convenient during the period from "January to June" as compared to "April to September



"change in the financial year was required as the current system leads to suboptimal utilization of working season. It had also noted that the current financial year cycle was chosen without any reference to national culture and traditions or convenience of legislators. Also, the financial year is not aligned with international practices and it impacted data collection and dissemination from the perspective of national accounts" NITI AAYOG 


However one more thing comes to my mind. I am not sure if it is right but this is another gamble played by Mr Modi

This affectively means the budget next year shall be in November and that shall be the last budget of this government. Although you may argue that budget in 2019 would have been also only a statement as elections shall be due but still he shall miss out on that

Also it can be a master stroke as delayed budget in November shall cover up any revenue loss in initial stage of GDP and he shall be able to carry on his development agenda till November as the last budget is always more populist than finance savvy.

My salute to Mr Narendra Modi, Entire financial Ministry and Mr Jaitley for always keeping development above populism.

Honestly I have no words. Surgical Strikes, Demonetisation, GST and now change in Fiscal year. All I can do is salute to this Government


INDIA SOON A WORLD POWER TO RECKON WITH 



From page 3 to human




Yesterday evening gave me few jitters. Trying to introspect "Have Me and my spouse become alien"

I was a party lover. But more recently enjoyed company of close friends over weekend where you laugh and share great moments. Most of invitations I used to decline on one or the other excuse. I myself didn't know why I did so but something inside me always stopped me

But yesterday evening was different. An invitation I had to accept. As we moved in some snacks were offered by the host. My Spouse who left dairy products, wheat and already a vegetarian just asked of curiosity " what is this made of "

Everyone asked why. As he moved on telling the reasons he asked a diabetic there to watch the documentary " what the health " which exposes nexus of pharma, doctors and politicians and how they play with human health. That was it. " How can you say that ? All these things are fake. Dr Hegde is absolutely rubbish" Shouted a guy who was apparently a doctor.

 I asked him Sir why doctors prescribe antibiotics & inhalers so liberally when same can be cured by exercise and yoga. But he became a doctor defender rather than answering. Anyways thinking this topic has sparked controversy I ended there

Then they started discussing " you know that guy is corrupt. His wife goes to Emporio every day & spends 10 lacs ". Surprised my spouse asked " even if one wants on what will you spend so much ? 

They answered looking at both of us " you guys don't use brands so u are unaware how expensive they are " We were taken aback. " see this LV bag costed me 5 lacs"  we both looked at each other with a smile. Looked like bag became her identity

Then all started to abuse Mr Modi. " he is a pathetic guy". My spouse asked why you saying so. " how much loss we incurred on demonetisation you know". I asked her so you hate the guy coz he is after black money? " you don't know how much black money he has " she lost her cool. Thinking this discussion going on wrong side I again sat quietly

Then a CA who knew me there interrupting " I read your blog and tweets about Chartered Accountants. They are not corrupt ". I said " Then why banks are sitting on so many NPA which has pulled down our country, I asked. " That I do not know" he moved away

Then they started talking of marriage in family & how many lacs a consultant is charging only as fees. " Why don't you have a simple party and call all near & dear ones" I advised.

" Where will we spend so much money we have if not here? We have earned it and it is for us. What will everyone think of our status?"  She replied. Inside I thought help a poor family, dying farmers, go outside AIMS where people sitting on foot paths as they don't have money to get in. But I realised soon enough there is no point in giving my views.

Bored to death we made some excuse and moved out.

 We knew the same thoughts were crossing our minds

" Have we changed and moved away from real world" ?

" Are we losing out on social circle we enjoyed for years"

" Who has brought this change? Age? No coz all were either our age or alder to us"

" Then what? Why we feel lonely in this crowd of parties"

It was raining and a poor guy holding his umbrella knocked on our car window. He was selling a toy. "So late at night in this heavy rain he working ". My spouse bought all his toys at price he asked.

Suddenly there was a spark on our face. All the negativity went away

And yes we both got the answer.

We are becoming more human. So feeling alienated from the world of "Me, myself and money"

We have realised the true joy of life is giving. Spending time with friends you can relate and travel to know people around the world. Helping other humans  

Still away from our goal but the process has started. How, when and why only destiny knows 

Finally we are rediscovering ourselves. Gratitude to Almighty. 


Monday, 17 July 2017

Indu Sarkar : Double standards of Gandhi's




Madhur Bhandarkar is an Indian film director, script writer, and producer. He made his directorial debut with Trishakti and went on to direct several critically and commercially successful films.

The drama film Chandni Bar (2001), won him the National Film Award for Best Film on Social Issues. Bhandarkar received the National Film Awards for the Best Feature Film and Best Director for Page 3 (2005) and Traffic Signal (2007) respectively. The drama film Fashion (2008) garnered him several accolades including Filmfare Awards nominations for Best Director and Best Screenplay.

Madhur was recently invited as the special Guest of Honour for the First International Yoga Day celebrations at the United Nations in New York on June 21.In 2016, Bhandarkar was awarded the Padma Shri, the fourth highest civilian award, by the Government of India.[

I really do not remember how many times I have watched his movie page 3 exposing hypocrisy of Lutyens and journalism. Similarly Fashion revealed the dark side of modelling world. He has always chosen topics of social interest and brilliantly portrayed real facts of various professions and behind the glamour world 

Movie Corporate brilliantly display the inside rotten world of corporate success. It exposed how the innocents are used and then thrown  away for success, money and fame. The nexus between politicians and corporate world to promote a brand at the cost of public health ......

He is in news for his upcoming Indu Sarkar which is another genuine effort to make the society aware of emergency imposed by then PM Mrs Indira Gandhi and hardships faced by people then. However Congress who call themselves crusader of freedom of expression have resorted to Gundaism( nothing new for them) The more violence they are creating the more they exposing themselves

This is same Congress and Lutyens and so called Educated class who were crying for freedom of Expression when Udta Punjab was in controversy.

The same people were quite and happily enjoying when Aamir Khan made fun of Hinduism in his movie PK. Surprisingly he got away with all awards for the movie. Where a cartoonist in Paris is murdered for some humour on any religion , this movie was an open display of insult to our religion, and non of God spared may it be lord Shiva or Hanuman

They protested and apologised to painter MF Hussain who was sent out of India to be back. He who dare not make any humour on his own religion painted our Goddess whom we worship day and night as nude. Yet the so called Artistic intellectuals called it freedom of Art

I do not know if any one watched KAI PO Che  The movie was brilliant but Gujrat riots were shown in poor light as if it was only Hindus who created terror. But Congress was happy and had no objection as it served their purpose to demean then CM Mr Modi. No one worried of Hindus burnt in train

Now let us Expose Gandhi dynasty for their freedom of Expression in Art

Aandhi


The movie was absolutely fine as far as the display, visual and content was concerned. But, it did create a buzz in the country and was banned by Indira Gandhi for quite some time. For some reason Indira Gandhi felt that the movie was mildly influenced by her life.

Kissa Kursi Ka




Kissa Kursi Ka was a controversial film that revolved around a corrupt and evil politician. The spoof is based on ’emergency’ and ‘Sanjay Gandhi’. The film was banned by the Indian Government (congress) and all prints were confiscated.


Garam Hawa

The release was held up by the censors for 8 months. The film depicted a Muslim family during the partition of India.

HAWAYEIN

The film, set against the backdrop to the 1984 Sikh genocide, is banned in the Indian states of Delhi, J&K, Haryana and Punjab.

Black Friday


The movie was based on the 1993 Bombay bombings. The released was blocked until the verdict of the lawsuit by the Bombay High Court on the petition of the under-trials.The film was originally set to be released in India on 28 January 2005.The producers appealed at the Supreme Court but the High Court order was upheld. The movie finally saw its release on 9 February 2007


Haider

Another movie openly showing Army raping and murdering innocents in Kashmir. Insult to Army is acceptable to congress and FOE crusaders but dirty truth of history not acceptable


There are many more and list is unending


When Sanjay Leela Bhansali openly distorts history and shows our history in Bad light that is termed as beautiful peace of Art. But if Mr Madhur Bhandarkar tries to show the real history then it is called a conspiracy funded by A political party

I also question the film fraternity of the likes of Karan Johar and others who were fighting for freedom of Art for Mr Bhansali hiding? So is it FOE or your friendly and political equations? 


Mr Rahul Gandhi & company and boot lickers of Gandhi Dynasty Truth can be buried for some time but it always shows up. You distorted our history books. Hijacked brains of people for decades. Made yourselves as God. 

Above facts expose your hypocrisy as to how you gave freedom to Artists when you were in government. People are not fools any more. If you support a person calling our PM a psychopath and question surgical strikes of our Army you have no right to stop a brilliant Director to showcase his work

Mr Madhur Bhandarkar India is with you. We will make sure that your movie is released not only in India but world wide. We will make sure it does 500 plus crores of business even if we have to spend on tickets many times.Any ways your movies are treat to watch

When India is with you, Why worry of Vandalism created by so called middle aged Youth Icon Rahul Gandhi. True Youngsters and everyone on your side.

We together will rewrite history

 still remember two years back when you stopped your car at Baga Beach turning, watched me for five minutes when I was draped in beach mud. And I was told' looks like you getting a role in his next movie......Anyways they are dreams 

 



 



Saturday, 8 July 2017

An honest CA to PM Modi

Respected Prime Minister

I as an Indian am proud to have a leader who is committed to work, A karamyogi working 24X7 selflessly for the country to make India a world leader. You are on mission of corruption free India, Digital India where Make in India products are admired all over the globe. Balancing the same with equal weightage to poor and farmers by introducing insurance, soil care and Jan Dhan accounts is not an easy job. 

Your tough decisions like Surgical strikes, Demonetisation and GST rollout have been appreciated not in India but worldwide. I am one of your biggest admirers and have done my best to spread all your hard work and good results amongst masses.

However as a well wisher it is my duty to speak my heart out if I feel something has not gone well with a particular community and has created criticism about few words may be not taken well by them

This is regarding the CA Day on July 1 at IG Stadium. I had invitation from the institute and was very excited. However as I reached there at 3 PM and had to wait till 5,(gates did not open) amongst crowd getting restless and humidity on peak I decided to return. Sad state as the affair was organised by CA member also a member of BJP and he made it a political event rather than for professionals. I can vouch 80% of professionals returned without attending 

Feeling disappointed I came back home. Excitedly I started to hear your speech thinking as if every word of yours is addressed to me as I am member of community and felt special. However for the first time after listening to your speech, I had mixed emotions.

The emotions got more confirmed when I saw pile of messages on Social Media with negativity. I understand that you did not try to say that all CA are corrupt but the message has been taken in that spirit.

Sir you said that " Doctors will never prescribe wrong things as they do not want patients to come back" However I can show you numerous examples where doctors have nexus with Pharma funds and Labs and they insist on surgery even if not required. SO CAN YOU SAY THAT ALL DOCTORS ARE CORRUPT?

You said that banks have huge NPA and CA who sign the balance sheets are responsible. I completely agree and I myself have tweeted 100 times that all NPA accounts CA should be scrutinised. However is it possible without fraudulent intent of bank officials who are supposed to take stock taking periodically which act as collateral security. CAN YOU TERM ALL BANK OFFICERS CORRUPT?

Everyone knows that goods from china are under invoiced and passed by corrupt officers who are bribed. The same has killed toy, shoes and handloom industry in our country. ARE CA RESPONSIBLE FOR THAT? CAN YOU CALL ALL CUSTOM OFFICERS CORRUPT?

People have lost their faith in judiciary which takes decades to decide an open and shut case like Laloo Prasad Yadav. Everyone knows how most politicians are corrupt . Unending scams of common wealth Games to 2G,3G,National Herald................CAN YOU SAY ALL POLITICIANS AND LAWYERS ARE CORRUPT?

You said that CA on Diwali holiday returned on 8th night as they had to help clients deal with black money. Is it necessary that all cash was black? What if a house wife calls me at 10 and cries that she had cash saved over years and does not know what to do? Should I not be available to help him?

I am writing all this as I am deeply hurt. Hurt not because you said against profession but majority of professionals who held high esteem of you have suddenly talking otherwise. Somewhere an Honest CA is hurt as he feels you painted all with one colour.

They were excited as it was a big Day for profession but they heard a little praise and more criticism from your side. May be the occasion did not match the words even if they were true

I am writing this as Lord Krishna said " A true well wisher is one who guides us to right direction not afraid of criticism that comes along" You might get upset but as far as I have experienced you embrace positivity

So when you said that " A CA signature is most important" why not add that your government will award such honest signatures every year and bring them to limelight. The positivity can be a game changer. 

I am concerned about 2019 elections and like me millions want you to be PM again. So I am worried. I hate when I get unwarranted messages from CA community and do not have much to defend.

Hence as you Bhakt and an Honest CA I request you to take care of such wrong sentiments. How? You do not need any advice  YOU ARE THE BEST.

I apologise if I sound rude or any of my words were not best suited. But honestly I had courage to right this as Mr Narendra Modi PM listens to every citizen and is large hearted to take criticism.

Warm Regards

Renuka Jain






Saturday, 1 July 2017

CA Day.

Returning back from 68 years of CA these thoughts crossed my mind when PM Narendra Modi said "CA manages economic health of our country"


When in School my mentor my Accounts teacher guided me to my goals. My desire was to appear for  civil services and be an IAS officer. I discussed the same with him.  Being an honest CA he advised me otherwise. I still remember his words " Renuka if you want to compromise on your honesty or willing to stay happy without cheating even if you earn less then take up this profession "

I asked myself " will I be able to compromise on honesty" The answer came no

I decided to pursue CA as my profession  as I always scored 100% marks in accounts. Then came the real world. When I joined first audit firm I started  audit of vouchers. Checking each expense with relevant documents. Sometimes I used to find huge discrepancies . My principal in audit firm used to praise me for my hard work. Financial statements signed without a mention of discrepancies.  Disappointed I used to look up to my seniors . Their reply" All has been set up. Our queues made them negotiate higher audit fees"   Was shocking for me.

When I started on my own I was now on decision making. But I realised soon enough why would someone give me work if I disclose their profits honestly? Why will they pay me if I do not give them option to work out ways to save tax with fraudulent methods? And if I don't do it they have thousands more who will sign for half the fees they pay to me

Frustrated I started with treasury operations. Portfolio management & stock markets with insurance  became my key areas. Slowly I started to do well & earned some name for myself.  But honestly today also I feel I could have been more richer with big name had I resorted to mis selling financial products. I read a lot. Follow Economy & politics keenly. But still many fail to look into honesty when I say expect 10 to 12% returns over 10 years coz someone else will come to them with fancy coloured graphs of plans promising them double their money in one year.

Yet I am happy. For who ever became investors never left me and trusted me with even giving blank cheques

Anyways I wrote this blog coz our Prime Minister said today that signature of a Chartered Accountant is very valuable.  But it isn't that easy as it looks.

Look at it from CA point of view ? If he does not agree to client demand of manipulating balance sheet there would be thousands more to take it up .  And take a scenario where all is done honestly there stands Assessing officer to grill both with unlimited questions. So many documents asked for that end of day a business guy who wants to concentrate on his work pays bribe.

From a middle class business man point of view. He also feels he ends up paying such high taxes & expenses  but what does he gets back in return ? Any social security or quality of life? He has to collect money for admission of his children to good universities where reservations are waiting. So study abroad? Not possible unless he saves portion of taxes to government which anyways is going toward nowhere. So he will resort to evade taxes

Of course I am not including likes of King Fisher. But many small enterprises & small CA firms who are left with no option but to resort to tax evasion. More so when fluctuations in government policies or Supreme Court can bring them on roads in one day ( liquor ban)

I understand that I am sounding too negative. But isn't that the reality? We abuse CA to be corrupt but isn't the system to an extent responsible for this? I ask FM why Assessing officers taking money openly not punished? Why only few bank managers punished when it is a Mafia? Where Gold & cars are distributed to them every Diwali to clear loans?

I am not justifying dishonesty of a CA or business guy. But isn't it time for government to introspect why they have to resort to same?  Why no assurance that AO dare not harass you ?  That there will be no retrospective changes? That we are with start ups & come to us if bank refuses

I also ask CA institute why not the institute decide to take criminal action against members resorting to cheating? 

The name of this profession is not as golden as it was long back ? But governments together with Institute can bring back faith & light to it.