Management Accountant Nov 2020

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EDITORIAL
Greetings!!! income of farmers by 2022. This
I
ndian Agricultural industry, with move is revolutionary since income is
its allied sectors, is undeniably intrinsically linked to how the markets
the largest livelihood provider in of the harvested produce function.
India, more so in the vast rural areas. First, Farmers’ Produce Trade
It also contributes a noteworthy figure and Commerce (Promotion and
to the Gross Domestic Product (GDP). Facilitation) Bill, 2020 that intends to
The high proportion of agricultural create an ecosystem where the farmers
land, diverse-agro climatic conditions and traders would enjoy freedom of has led to the emergence of many agro
for cultivating different crops are some choice of sale and purchase of agro- companies. Together, these agrotech
of the factors favoring agriculture produce. It would also promote barrier- startups are working to enhance crop
in the country. Schemes such free inter-state and intra-state trade output, increase farmer incomes,
as Paramparagat Krishi Vikas Yojana and commerce outside the physical better farm management, and drive
(PKVY) are helping in developing premises of markets notified under efficiencies in the farm-to-fork value
organic farming by promoting farmers State Agricultural Produce Marketing chain. Such startups who are starting
to produce commodities free of legislations. The farmers will not be new enterprises often face difficulty in
pesticide and residue. charged any cess or levy for sale of raising investment capital. The CMAs
The sudden breakout of pandemic their produce and will not have to bear with their professional expertise can
Agricultural Costing & Pricing
Novel Coronavirus resulting in transport costs. The Bill also proposes negotiate with banks and other agencies
continuous lockdown for a few months an electronic trading in transaction in order to get the assistance they need
have adversely affected the Indian platform for ensuring a seamless trade to establish their new enterprise. Also,
economy due to shutdown in most electronically. In addition to mandis, the CMAs can apply Value Chain
industries. With agriculture forming freedom to do trading at farmgate, Management technique to facilitate
nearly 15-18 percent of Indian GDP cold storage, warehouse, processing management in minimizing resources
over the last few years, its importance units etc. Farmers will be able to and accessing value at each chain
in providing a cushion to the Indian engage in direct marketing thereby level, resulting in optimal process
economy would gain even more eliminating intermediaries resulting in integration, decreased inventories,
relevance this financial year, as growth full realization of price. quality service and enhanced customer
in the other sectors has been weakened Again, The Farmers (Empowerment satisfaction. Further, Organic
due to Covid-19. Firmness in agro and Protection) Agreement of Price food, which is gaining immense
prices could boost the production Assurance and Farm Services Bill, popularity these days for its health
and GDP further. The year 2020-21 2020 has been passed to empower and environmental benefits; even
could well be the year for the Indian farmers for engaging with processors, here CMAs are competent enough
Agricultural sector. wholesalers, aggregators, wholesalers, to advise suitable pricing strategies
The SDGs as specified in the 2030 large retailers, exporters etc., on a for enhancing marketability of the
Agenda for Sustainable Development level playing field. Price assurance organic products and also apply Cost
aims at protecting the planet, ending will be given to farmers even before Management techniques for cost
poverty and hunger, sustainably sowing of crops. In case of higher control and cost reduction to increase
managing natural resources, building market price, farmers will be entitled productivity and consumerism.
global partnerships, reducing to this price over and above the This issue presents a good
inequality, and ensuring prosperity and minimum price. It will transfer the number of articles on the cover story
well-being for the global population risk of market unpredictability from “Agricultural Costing & Pricing”
by 2030. The agricultural sector, being the farmer to the sponsor. Due to written by distinguished experts. We
at the crux of this agenda, can take an prior price determination, farmers will look forward to constructive feedback
active role in achieving the SDGs. be shielded from the rise and fall of from our readers on the articles and
market prices. It will also enable the overall development of the Journal.
The government has passed few
farmer to access modern technology, Please send your emails at editor@
ordinances in the recent past to liberate
better seed and other inputs, reduce icmai.in. We thank all the contributors
farmers from the restrictive marketing
cost of marketing and improve income to this important issue and hope our
regime that has managed the marketing
of farmers. Effective dispute resolution readers would enjoy the articles.
of agriculture produce for decades.
mechanism has been provided with May the light that we celebrate
This sweeping stroke promises to
clear timelines for redressal. Emphasis at Diwali show us the way and lead
bring the entire world of farming
to be given on improvement of research us together on the path of peace,
technology, post-harvest management
and technology. prosperity and social harmony.
and marketing channels at the doorstep
of the farmer. The national vision The convergence of government Wishing everyone a very Happy
of the farm sector is to double the policy, technology, and consumption Diwali ahead!!!

India
Since 1928, Domus has been considered the most prestigious international review of
developments and thinking in architecture, art and product design, as well as cities and
urbanism with a global readership of professionals, specialists and members of the general
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Volume 9/ Issue 1 / November 2019/ Pages 116/ `200
Volume 9/ Issue 2 / December 2019/ Pages 116/ `200
Volume 9/ Issue 3 / January 2020/ Pages 116/ `200

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PAPERS INVITED
Cover Stories on the topics given below are invited for ‘The Management Accountant’
for the four forthcoming months
• Significant role of MSMEs towards attainment of visionary Atmanirbhar Bharat
• Revision of definition of MSMEs: A step to boost investment and Ease of Doing Business
December 2020
• COVID-19 and its impact on Indian MSMEs

Subtopics
• Innovation and Digitalization: Changing the MSME landscape

Indian MSMEs:
Theme
• RestartIndia: an Advisory Platform for MSMEs

Key to Economic • Equity Infusion in MSME
Restart • e-Market linkage for MSMEs
• Government Packages to cater MSMEs in the new Normal
• Subordinate Debt for Stressed MSMEs
• Potential for MSMEs in the Defence Sector
• Exploring opportunities for MSMEs in India post COVID-19: Role of CMAs
• Inclusion of Startups in Priority Sector Lending: a welcome move towards inclusive development of
the nation
• Loan Restructuring Scheme for COVID-19 hit stressed borrowers
January 2021
• Future of Banking post-Covid 19 pandemic

Catalytic role of the
Subtopics
• Credit guarantee to MSMEs in support of Atmanirbhar Bharat Abhiyaan

Theme
Banking Sector for • Loan Moratorium: an Aid to Ease Financial Stress

India’s Economic • Door Step Banking: a Revolutionary Initiative
Revival • The Digital imperative for Banking in the New Normal
• Emerging Cyber Security Threats in the Banking Sector
• Artificial Intelligence (AI): A major game-changer in the Bank Risk Management
• EASE 3.0 — Smart, Tech-enabled Banking for Aspiring India: Exploring professional scope for CMAs
• Cost Benefit Analysis (CBA) in Healthcare Industry

• Time-driven Activity Based Cost Model for improved Healthcare Resource Mapping
• Balanced Scorecard: A Powerful Organizational Tool for Strategic Planning and Driving Performance
in Healthcare Industry
February 2021
• Impact of Artificial Intelligence for Cost-Effective Clinical Trials in the New Normal
Subtopics
Healthcare Cost
Theme
• Price-Transparency in the age of COVID-19: The growing importance of Cost Accounting

Management in India: • Health Insurance: Demystify New Challenges, Products, and Opportunities during COVID-19 and
The Way forward beyond
• Wellness Programmes: A remedy for reducing Healthcare Costs
• Frugal Innovation, Digital Health and Data Sciences: the Way forward for India to attain Trillion Dollar
Economy
• Government Policies to curb Healthcare Cost and provide affordable Healthcare Services for the mass
• Value Addition to Healthcare: Role of CMAs
• Social, Political and Legal Dimension of Women Empowerment

• Self Help Group (SHG): An effective approach towards Women Empowerment in India
• Electronic and Print Media: A significant tool to accelerate Women Empowerment
March 2021
Women in the
Subtopics
• Dynamic Role of Women in the Workforce

Theme
Workplace: Stepping • Factors concerning female participation in the Corporate Sector

towards Generation • Breaking Barriers: Women Change-makers in this era of digitization
Equality • Gender Equality Efforts by the Government
• Female leaders shaping the future world: Building a New Normal
• Women in Board Rooms
• Women Entrepreneurs in India
The Above Subtopics are only suggestive and hence the articles may not be limited to them only.
Articles on the above topics are invited from readers and authors along with scanned copies of their recent passport size photograph
and scanned copy of declaration stating that the articles are their own original and have not been considered for anywhere else.
Please send your articles by e-mail to [email protected] latest by the 1st week of the previous month.
DIRECTORATE OF JOURNAL & PUBLICATIONS

CMA Bhawan, 4th Floor, 84 Harish Mukherjee Road, Kolkata - 700025, India
Board: +91 33 2454 0086 / 87 / 0184 Tel-Fax: +91 33 2454 0063
www.icmai.in

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PRESIDENT’S
COMMUNIQUÉ
CMA Biswarup Basu
President
The Institute of Cost Accountants of India
examination for the foundation course are some

of the important decisions already implemented
successfully. Taking into consideration the
prevailing condition, it is not possible to conduct the
examination in physical exam mode for December
2020. So, the Institute to manage the affairs in
the best interest of all stakeholders has decided to
conduct the Intermediate and Final Examination in
December 2020 in Online Mode only. This is the
merged examinations of both June 2020 term and
December 2020 term.
Candidates/Students are instructed to provide
“The negligence of a few could easily send a ship current in-use correct and updated contact details
to the bottom, but if it has the wholehearted co- like mobile number and e-mail Id with all other
operation of all on board it can be safely brought required credentials with selection of:
to the port.” 1. Center based Online
- Sardar Vallabhbhai Patel 2. Home based Online to appear in the
December 2020 examination
My Dear Professional Colleagues, 3. Opt-Out for next term in the form
W
ith the air filled with festive excitement, The last date for filling-up of credentials and
the month of November holds some very selection of any one of the above mentioned three
special festivals of India. I convey my warm options is 12th November 2020. Kindly visit the link
greetings & good wishes to the entire CMA available at https://icmai.in/studentswebsite/exam.
fraternity for all the forthcoming festivals. Diwali marks the php. Please note that after selection of an option to
victory of good over evil and brightness over darkness. May appear in the said examination, no request for any
this auspicious festival of lights illuminate your life and bring change will be entertained.
good health, wealth and prosperity. The Candidates/students are advised to visit
the website of the Institute regularly for further
December 2020 Examination notifications and announcements relating to
The pandemic has affected educational systems worldwide, December 2020 examination and in case of any
leading to the near-total closures of schools, institutions, query or clarification can e-mail us at - exam.
universities and colleges. Online learning and online [email protected]
examination has become a critical lifeline for education, as
institutions seek to minimize the potential for community Meeting with Member Finance, Railway
transmission. Governments across countries have initiated Board
universities and higher education systems to adapt to remote I along with CMA P. Raju Iyer, Vice-President,
instruction to cover lectures, exams, evaluations, and result CMA Chandra Wadhwa, Past President and CMA
publications. B.B. Goyal, Advisor, ICWAI MARF and former
The Institute is committed to take every possible step in Addl. Chief Adviser, Ministry of Finance, GoI
the overall interest of student community in the present extended greetings to Shri Naresh Salecha, Member
scenario. Online classes for students and online home based Finance, Railway Board on 14th October 2020 and

PRESIDENT’S COMMUNIQUE
discussed about the progress of Indian Railways project President, CMA Chittaranjan Chattopadhyay, Chairman -
on Performance Costing System in Indian Railways and Banking, Financial Services & Insurance Committee and
other matters related to the CMA profession. Indirect taxation Committee of the Institute participated
in the webinar organized by the NIRC of the Institute on
PCS Project for Indian Railways “Stock Audit - Globally Sustainable Approach” on 20th
October 2020. CMA (Dr.) Rajkumar S. Adukia and Shri
I am happy to report that the ICWAI Management
Ravi Chopra, Prominent Author - Stock Audit were the
Accounting Research Foundation has submitted its
“Key Note Speakers” of this webinar which was well
Final Report on Performance Costing System (PCS)
received by the participants.
in Indian Railways on October 30, 2020. This report
on the prestigious project has been well received and
National Webinar by Kota Chapter
appreciated by the Ministry of Railways (Railway
Board). I congratulate the entire team for accomplishing A National Webinar on “National Education Policy
this difficult task that was made possible by continuous 2020 & Standardisation of Costing Concepts” was
monitoring and guidance by the Monitoring Task Force organised jointly by the Kota Chapter of the Institute
under the Chairmanship of CMA P. Raju Iyer, Vice- and Indian Accounting Association, Kota Branch on 4th
President, ICAI and Director, MARF. October 2020. Prof. Neelima Singh, Vice Chancellor,
University of Kota, Prof. Kailash Sodani, Former Vice
MOU with Government of Jammu and Kashmir Chancellor, GGT University, Banswara and MDS
University of Ajmer, Prof G. Soral, President, IAA,
I am pleased to share that the Institute has signed a
Former Dean & Head MLS University, Udaipur, Prof. K.
MoU with Higher Education Department, Government
Eresi, Chairman-PBL Committee, IAA, Past President-
of Jammu and Kashmir on 29th October 2020 in the
IAA, Former Professor & Dean, University of Bangalore,
presence of CMA P. Raju Iyer, Vice President, CMA
Prof. Sanjay Bhayani, General Secretary IAA, Dean &
Neeraj D. Joshi, Chairman, Management Accounting
Head Department of Business Management, Saurashtra
Committee and CMA Bashir Masoudi, Chairman,
University, Rajkot were the Guest of Honours. The
Srinagar Chapter of the Institute. The MOU provides for
event witnessed the participation by CMA P. Raju Iyer,
effective collaboration between the Institute and J&K
Vice President, CMA Balwinder Singh, Immediate Past
Government for implementation of Skill Programme,
President and other council members of the Institute.
Guidance in Development of Curriculum, Identification
Dr. Narayan Lal Gupta, Jt. Secretary, ABRSM and Prof.
of Qualification Packs (QPs), Guidance in Development
Ranjan K. Bal, Past President IAA, Former Professor, PG
of Physical Infrastructure Labs, etc., Conduct of
Department of Commerce and Department of Business
Assessments and Award of Certifications to benefit the
Administration, Utkal University, Bhubaneshwar were
student community at Colleges of UT of J&K to enhance
the eminent speakers who deliberated on webinar topic.
their skills and knowledge.
I congratulate CMA Akash Agarwal, Chairman Kota
Chapter and his team for the successful conduct of the
Two Days’ Global Virtual Conference by
National Webinar.
ASSOCHAM
I am pleased to inform you that the Institute associated PD programme by Bangalore Chapter and Mysore
with ASSOCHAM as “Supporting Partner” for organizing Chapter
Two Days’ Global Virtual Conference on “Audit, Risk &
I along with CMA P. Raju Iyer, Vice President
Governance, Emerging Trends, Current Challenges and
attended the Professional Development Programme on
Way Forward” on 27th & 28th October 2020. Eminent
the topic “An analysis of the Companies (Amendment)
national and international speakers from the industry and
Act 2020” jointly organised by Bangalore Chapter and
associations deliberated on the recent global developments
Mysore Chapter of the Institute on 21st October 2020.
in audit profession, regulation and technology as well as
CMA (Dr.) P.V.S. Jagan Mohan Rao, Immediate Past
to promote professional, organisational ethics and good
President & Advisor of SAFA and former Council
governance in letter and spirit. I represented the Institute
Member of the Institute was the “Guest of Honour &
in the conference and delivered keynote address on “Cost
Speaker”. Participants were immensely benefited with
Audit Perspectives” on 28th October 2020. Participants
the deliberations.
from government, business, industry and profession
participated in the conference on subject of utmost
Webinar organized by WIRC and Ahmedabad
significance.
Chapter for CMA Students
Webinar by NIRC I along with CMA P Raju Iyer, Vice President of the
Institute addressed the CMA Students during the webinar
I along with CMA Balwinder Singh, Immediate Past
on “Thought process behind online Examination”

organized by the WIRC of the Institute under the CORPORATE LAWS COMMITTEE
Chairmanship of CMA Harshad S Deshpande on 24th
Corporate Laws Committee of the Institute organized
October 2020. Another important webinar for the CMA
a WEBINT on ‘Companies Amendment Act 2020’ on
Students was organized by the Ahmedabad Chapter on
3rd October 2020. We are grateful to CS Makarand Lele,
31st October 2020 on “CMA Online Exam – Welcome
Government Nominee to the Council of the Institute and
to the New Normal”. I along with CMA P Raju Iyer,
Past President, ICSI for kindly agreeing to be the ‘Guest
Vice President, CMA Balwinder Singh, Immediate Past
of Honour and Speaker’ to address the participants on
President, CMA Ashwin G. Dalwadi, Chairman, IT and
the “Companies Amendment Act 2020 and other latest
CAASB and CMA Ashish Bhavsar, Secretary WIRC of
updates”. I had the opportunity to share my views on
the Institute addressed the students to clarify their doubts
Companies Amendment Act 2020. CMA P Raju Iyer,
on the online examinations to be held in December 2020.
Vice President, CMA Balwinder Singh, Immediate
Past President, CMA (Dr.) Ashish P. Thatte, Chairman,
Webinar by Noida Chapter
Corporate Laws Committee also delivered their special
I attended a webinar organized by the Noida Chapter on addresses on the topic.
the theme “Building Costing System for Better Decision Chairman Corporate Laws Committee started the year
Making” on 31st October 2020. Shri Pankaj Singh – with a welcome initiative of 9 days 9 session series in
Hon’ble MLA, Noida graced the event as the ‘Guest of form of Webints which were an instant success with
Honour’ and CMA R. Parvathy was the resource person. the members and other professionals. The WEBINT on
The session was immensely helpful for the members in various innovative topics on corporate laws taken by CS
understanding the importance of building costing system Makarand Lele, Government Nominee, CMA Neeraj D.
for better decision making. Joshi, Council member, CMA L. D. Pawar, Co-opted
member of the Committee, CMA Dr. Gopalakrishnan
I now present a brief summary of the activities of Raju, CS A. Sekar, CS Divya Abhishek and CS Meghna
various Departments/Committees/ Boards of the Institute, Shah were well appreciated by the various stakeholders
in addition to those detailed above: of the Institute.
The Corporate Laws Committee has taken a step
BOARD OF ADVANCED STUDIES & RESEARCH
forward in releasing the first edition of e-bulletin as CMA
I am pleased to share that the Board of Advanced Corporate Connect. The E-bulletin contains articles on
Studies & Research has announced online admission to subjects penned by the eminent speakers/ professionals.
its 4th Bach of “Certificate Course in Data Analytics for It also covers the recent updates on corporate laws which
Finance Professionals” and 1st Batch of Certificate Course will be of great importance to our members and students. I
in Advanced Business Excel for Finance Professionals congratulate the Chairman and all members of Corporate
[with Microsoft Certification]”. Laws Committee including Government Nominees for
Besides, online live classes for 1st & 2nd Batches taking this excellent initiative.
of “Certificate Course in Data Analytics for Finance
Professionals”, “Executive Diploma in Business DIRECTORATE OF CAT
Valuation”, “Certificate Course in Arbitration” and My Council colleague CMA H. Padmanabhan,
revisionary class for 1st Batch of SAP are being conducted Chairman-CAT has been doing exceptional work in
on regular basis to facilitate and train the participants spearheading the Institute’s endeavours to be engaged
with the intricacies of the subject matter. with the Members and Students of the Institute through
The Board of Advanced Studies & Research organized his initiative of holding WEBINTs during these trying
a Virtual National Seminar on “Forensic Audit & Fraud times, when regular seminars, conferences, workshops
Detection” on 3rd October 2020. I had the opportunity and classes are not allowed to take place. The contribution
to inaugurate the virtual event. The Chief Guest of the of CMA H. Padmanabhan in making WEBINT a grand
event was Mr. G Jagan Mohan, General Manager, Central success will always be remembered in the history of the
Fraud Monitoring Cell, Reserve Bank of India and the Institute. CAT conducted several WEBINT programs
welcome address was delivered by CMA Debasish Mitra, during the month of October, 2020 on the topics such
Chairman, Board of Advanced Studies & Research. as IND AS 41 – Agriculture, IND AS 102 - Share Based
CMA P. Raju Iyer, Vice President summed up the whole Payment, IND AS 115 - Revenue from Contract with
session. Speakers at the technical sessions were CMA Customers, IND AS 116 – Leases and Life & Work
Neeraj Aarora, Advocate on Record, Supreme Court Management. The Committee also organized a WEBINT
of India, Special Public Prosecutor with NIA and CA Series in association with AAT Board on all Mondays for
Chetan Dalal, CEO, Leading Investigation Specialist 10 days starting 26th October onwards.
Organization. The vote of thanks was offered by CMA The Committee organized WEBINTs for the CMA
Dr. D.P. Nandy, Sr. Director of the Institute. Students on IND AS 41 - Agriculture - Section A - Study

Note – 1, IND AS 102 - Share Based Payment - Section facility has been extended to the Foundation,
D - Study Note – 6, IND AS 115 - Revenue from Contract Intermediate and Final Level Students.
with Customers, IND AS 116 – Leases and CMA Final - ~~ Subject-wise Online Classes have been conducted
Paper 17 - CFR - Corporate Financial Reporting. on a regular basis to make students well-prepared
~~ Notification - CAT Level II Assessment Tests - before the forthcoming examinations.
November 2020 ~~ Online campus placement activities are being
CAT Directorate issued Notification for the CAT organized on a regular basis.
Level II Assessment Tests. These tests will be
available at the Institute’s website till December PROFESSIONAL DEVELOPMENT & CPD
31, 2020. I urge students, who have already COMMITTEE
passed Foundation Course (Entry Level) Part-I I am pleased to inform you that the Professional
examination, to take up these tests. I also wish Development Directorate is organizing the Online
students all the best for exams. Mandatory Capacity Building Training (e-MCBT) for
~~ CAT Course under Skill India new COP holders for upgrading the skills and knowledge
of CMA Practitioners and enhance their professional
CAT Directorate is continuously working to
Competence & skill benefitting in the competitive
bridge the skill gap in India through its CAT
environment.
course and working towards running it under
skill development programmes run by the This training is designed to sensitize the new comers
Central Government of India and many State with the practical aspects of the allied areas of practice.
Governments. The Directorate wrote to the Chief I request the practicing Cost Accountants who have
Ministers & Skill Development Ministers of all the obtained Certificate of Practice (CoP) w.e.f., 1st February
State Governments about CAT course highlighting 2019 to register for e-MCBT.
the recognition of CAT course from BFSI Sector PD Directorate sent representation letters by mail to
Skill Council of India. various organizations for inclusion of cost accountants
It gives me immense pleasure to share with you that for providing professional services. I am happy to
the CAT Directorate is receiving positive responses from inform you that on Institute’s representation, State Urban
many states. I sincerely thank CMA H. Padmanabhan, Development Agency (SUDA), Urban Development &
Chairman and all members of the Committee for putting Housing Department, Jharkhand relaxed the eligibility
their sincere efforts and execution for the growth of the condition of C&AG empanelment for Cost Accountant
CAT Course. Firms.
Please visit the PD Portal for Tenders/EOIs during
DIRECTORATE OF STUDIES the month of October 2020, where Cost Accountants
are required in Chhattisgarh State Power Generation
I am pleased to share that the Directorate of Studies
Company Limited, The Urban Development and Housing
has introduced ‘World Class Techno-Skill Development
Department, Madhya Pradesh PaschimKshetra Vidyut
Training’ facilities for the CMA Intermediate Students with
Vitran Corporation Limited, Bharat Sanchar Nigam
SAP Certification, Microsoft Certification, Cambridge
Limited, Jharkhand Bijli Vitran Nigam Limited, State
University Certification and E-Filing to upskill the
Bank of India, V.O. Chidambaranar Port Trust, Software
students for better employability and to groom them as
Technology Parks of India (STPI) etc.
industry-ready professionals. The Training & Placement
wing of the Directorate of Studies has already initiated Professional Development and CPD Committee
an exhaustive online ‘Train-The-Trainers’ Program to along with Corporate Laws & Accounting Technicians
create an effective resource pool of faculty members in Committee organized webint on “IND AS 102: Share
the domain of SAP and other Soft-Skill Training areas Based Payment” on 11th October, 2020. Many Practicing
for imparting skill training to the students. Further, the Cost Accountants, Insolvency Professionals, Registered
Directorate of Studies has taken the following initiatives Valuers and GST Practitioners participated in the webint.
during the month of October 2020: During the month around hundred webinars were
~~ An exclusive ‘Online Mock Test Platform’ with organised by the different committees of the Institute,
a sufficient number of exercises as per the CMA Regional Councils and Chapters on the topics of
Curriculum has been developed to facilitate professional relevance and importance. We are sure our
CMA Students for practicing various MCQ and members are immensely benefited with the deliberations
descriptive type problems on a real-time basis in in the sessions.
view of forthcoming online examinations. Students
can view their score, correct answers, timing, and
dummy result sheet after the test is over. This

INTERNATIONAL AFFAIRS COMMITTEE Vice –President, Goods and Services Network where the
Chief Guests who deliberated on the topic. In addition,
The International Affairs Committee under the
webinars were conducted on the topics like (i) Matching
chairmanship of CMA Vijender Sharma, Council
Concept under GST, (ii) Interplay between GST and
Member of the Institute organized a Webint jointly
Customs, (iii) Benefits for Senior Citizens under IT
with Management Accounting Committee on the topic
Act 1961 and (iv) Section 206C(1H) TCS provision on
“Why the Management Accounting Profession should
sale of Goods which would have surely benefitted our
play a lead role in Integrated Reporting” on 8th October
members. Recommendations for E-invoicing Mechanism
2020. CMA H. Padmanabhan, Council Member hosted
and inclusion of the Cost Accountants in GSTN-10
the WEBINT, Mr. Stathis Gould, Director, Advocacy,
Certification have been submitted to Shri Yogendra
IFAC was our eminent resource person on the topic and
Garg, Principal Commissioner (GST), CBIC. The Tax
CMA A.N. Raman, Former President, SAFA was the
Bulletin’s 72nd and 73rd issues have been released. Classes
moderator of the Webint which was well appreciated by
for all the Taxation Courses- (i) Certificate Course on
the participants.
GST, (ii) Advanced Certificate Course on GST, (iii)
� Meeting of SAFA Board Certificate Course on Filing of Returns, (iv) Certificate
I attended the 64th meeting of South Asian Course on TDS are going on seamlessly. Admissions
Federation of Accountants (SAFA) Board on 3rd for all the Taxation Courses are open till 15th November
October 2020 through video conferencing. This 2020 for the ensuing batches. Apart from these, in D.G
was the special meeting of the SAFA Board to Vaishnav College of Chennai, Crash Course on GST has
deliberate and finalize the amendments in the been completed and exam had also been conducted.
Constitution of SAFA.
BANKING, FINANCIAL SERVICES AND
TECHNICAL CELL INSURANCE COMMITTEE
The Technical Cell of the Institute headed by CMA I am happy to state that the BFSI Committee in
Chandra Wadhwa, Former President of the Institute collaboration with National Institute of Securities
held its first web meeting of the term 2020-21 on 16th Markets (NISM), an educational initiative of SEBI,
October 2020. I had the opportunity to attend the meeting has started the 1st batch on the Certificate Course on
and participate in the discussions. The meeting was Investment Management (Level 1: Stock Selection
very intense and fruitful. I congratulate the Chairman and Trading in Equity), the inauguration of which took
and Members of the Cell for holding very constructive place on 18th October 2020 under the august presence of
discussion on each and every agenda item during the Shri S.K. Mohanty, Director of NISM and Whole time
meeting. Among other agenda items, the Cell approved Member of SEBI, I along with my Council colleague
the release of Exposure Draft of Guidance Note on Local CMA Chittaranjan Chattopadhyay, Chairman of BFSI
/ Indigenous Content in Manufacturing / Production & Committee, who was instrumental in initiating this
Supply of Goods and Services, for public comments. collaboration, were present. The inaugural session was
Accordingly the Exposure Draft was uploaded on the also graced by Shri Sunil Jayawant Kadam, Registrar of
Technical Cell webpage and also sent to members NISM, Dr. V R Narasimham, Dean & Professor of Practice
through bulk email. I urge the members to go through (School for Regulatory Studies and Supervision (SRSS)
the same and offer their suggestions to further improve & School for Corporate Governance (SCG) of NISM
the draft guidance note. Last date for sending the along with CMA Dr. Latha Chari, Associate Professor,
suggestions / comments is 12th November 2020. The (School for Securities Information and Research (SSIR),
draft shall be finalised by the Technical Cell in the light NISM. The online classes started with a maximum
of the suggestions received from the members and the capacity of 50 numbers. I am extremely happy to share
stakeholders. The exposure draft is available at https:// that the registration for the 2nd batch of the course has
icmai.in/icmai/Technical_Cell/LICMP.php already begun and I request members and students to take
advantage of this collaborative initiative between ICAI &
TAX RESEARCH DEPARTMENT NISM and register for the course in large numbers.
BFSI organized a WEBINT on Onshore and Offshore
This Dussehra was celebrated by TRD by conducting
Market for Indian Rupee on 12th October, 2020 which was
a Webint Session with Eminent Tax Expert Dr. Girish
attended by members and representatives from various
Ahuja on Faceless Assessment and Benami Property
financial institutions and Banks. The admission for the
Transaction Act. It was a wonderfully conducted
2nd batch of Certificate courses on banking viz. Certificate
and very knowledge enriching session. Apart from
Course on Concurrent Audit of Banks, Certificate
this, another webint was conducted on E-Invoicing:
Course on Credit Management of Banks and Certificate
Understanding the System & FAQ where Shri Suresh
Course on Treasury and International Banking has also
Meti, Technical Director, NIC and Shri Ravi Kiran Edara,
commenced after overwhelming response was received

for the admissions of the 1st Batch. These courses, it is Sr. Director of the Institute. The event was attended by a
expected, will go a long way in the capacity building and good number of CMA members and Final level students.
skill enhancement of the members.
ICMAI REGISTERED VALUERS
REGIONAL COUNCIL AND CHAPTERS ORGANISATION (RVO)
COORDINATION COMMITTEE
I am pleased to share that ICMAI RVO has taken the
I am happy to note that the committee under the following initiatives during the month of October 2020:
Chairmanship of CMA (Dr.) K ChA V S N Murthy has
~~ 4th and 5th One-day Online “CPE program” to grant
initiated efforts to further improve coordination activities
“Certificate of Practice”
between all our Regions and Chapters with headquarters.
~~ 4th Online Batch for Land & Building
MANAGEMENT ACCOUNTING COMMITTEE ~~ 4th Online Batch for Plant & Machinery
The Management Accounting Committee under the ~~ Saturday Webinar on regular basis
Chairmanship of CMA Neeraj D. Joshi has successfully
organized a WEBINT on the ‘Cost Management through INSOLVENCY PROFESSIONAL AGENCY (IPA)
Quality Systems’ on 16th October 2020 for the benefit of OF THE INSTITUTE
members and students of the Institute. I thank our eminent Insolvency Professional Agency of the Institute has
speakers Mr. V. Vijayaraghavan, Principal Consultant organized preparatory Education Course for Limited
and Trainer, TQM Quest Consultancy Services and Insolvency Examination (Virtual) during 3rd to 5th October
CMA R Venkataramani, Director, Westcott Electricals 2020, Master Class on Personal Guarantors to Corporate
Private Limited for their detailed deliberations. I had the Debtors (Virtual) from 16th to 18th October 2020 and 30
opportunity to share my views on the topic. CMA P Raju Hours Certificate Course on Insolvency Bankruptcy Code
Iyer, Vice President and CMA Neeraj D. Joshi, Chairman, (Virtual) from 31st October 2020 to 6th November 2020
Management Accounting Committee also delivered their for the professional development of its members.
special addresses on the topic.
I wish prosperity and happiness to members, students
MEMBERSHIP DEPARTMENT and their family on the occasion of Diwali, Kali Puja,
I congratulate and welcome all the new 156 Associate Laxmi Puja, Bhaiya Duj, Children’s Day, Chhath Puja
members who were granted new membership and 48 and Guru Nanak Birthday and wish them success in all
Associate members who were upgraded to Fellowship of their endeavours.
during the month of October 2020.
Stay safe and healthy!
I am happy to note that under the leadership of CMA
(Dr.) V Murali, Chairman of the Members Facilities
With warm regards,
Committee, these new memberships were granted in 4
batches even during festivities in the month of October
2020.
MEMBERS IN INDUSTRY COMMITTEE

The Members in Industry Committee jointly with
the Board of Advanced Studies & Research under the CMA Biswarup Basu
Chairmanship of CMA Debasish Mitra organized a 2 Day November 1, 2020
CMA e-Connect Virtual Seminar on “Case Studies and
Intricacies in GSTR Annual Return (GSTR9)” on 17th &
18th October 2020. The virtual event was inaugurated by
me along with CMA P Raju Iyer, Vice President of the
Institute. The welcome address was delivered by CMA
Debasish Mitra and a special address was delivered by
CMA Chittaranjan Chattopadhyay, Chairman, Indirect
Tax Committee & BFSI Committee. The Chief Guest of
the virtual seminar was CMA Amit Sarkar, Sr. Director,
Deloitte Haskins & Sells. The keynote speaker for the
technical sessions on both the days was CA Pratik Shah,
GST Consultant. The vote of thanks was offered by CMA
Arup S Bagchi, Sr. Director and CMA Dr. D.P. Nandy,

CHAIRMAN’S
COMMUNIQUÉ
CMA (Dr.) K Ch A V S N Murthy

Chairman
Journal & Publications Committee
Transformation, Down the Memory Lane, Budget highlights

and Banking updates for benefit and knowledge of our
members and giving our best efforts to reach the unreachable
through persistent value addition. Distinguished experts
and authors contribute relevant and path-breaking articles
and case studies for the journal that not only enhance the
quality of the publications, but also give new dimensions
and directions towards socio-economic research and policy
making.
If I have the belief that I can do it, I shall Agriculture, being a prime linkage between the planet and
people, can play a big part in addressing the future needs of
surely acquire the capacity to do it even if I
the world along with the sustainable management of natural
may not have it at the beginning resources. November 2020 of the Journal “The Management
Accountant” is based on the theme “Agricultural Costing &
- Mahatma Gandhi Pricing” that focuses on the transformation of the agricultural
I
sector to achieve sustainable development goals by making
am thankful to the Council Colleagues of the Institute the agricultural system more efficient, productive, and
for having faith in my capabilities and reassigning resilient in a socially-responsible, economically-feasible,
me for the second time the responsibility to serve the and environmentally-sustainable manner.
Institute as Chairman of the Journal & Publications
Committee (2020-21) during this one year. I convey my I request continuous support from every corner in the quest
sincere gratitude to everyone, who supported the activities for value creation through the activities of this department.
of the Journal and Publications department and is committed I am also very much confident that the office bearers of the
to working relentlessly to meet the expectations of the department will provide their assistance and best efforts
members, students and other stakeholders. undoubtedly and commit for its betterment.
Our mission is to establish this department as a premier We solicit your feedback, suggestions and concerns for
research body in the country to raise public awareness the overall development of the Journal and Publications
about policy issues in business, trade, society and economy Department. Please send us mails at [email protected] /
and to facilitate solutions that will contribute to national [email protected] for various issues relating to journal and
development. publications.
The following publications are being published regularly Happy Diwali!!!

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~~ The monthly journal ‘The Management Accountant’
~~ Quarterly ‘Research Bulletin’
The Management Accountant journal is now available in

CMA (Dr.) K Ch A V S N Murthy
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to increase the same to other parts of the world. The journal November 1, 2020
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same to other platforms mainly at the International Level.
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COVER STORY
DOUBLING THE FARMER’S

INCOME BY 2022 –
CURRENT SCENARIO, ISSUES
& CHALLENGES AND WAY
FORWARD
CMA Ranjan Gunjal

DGM Finance
Godrej & Boyce Mfg. Co. Ltd.
Vikhroli, Mumbai
Abstract
For Many Years, Indian Farmer has been at the Mercy of Monsoon, being exploited by Middlemen
& Money lenders and being used as a Vote bank by Politicians! Farmers Committing Suicides
due to indebtedness and Crop Failures has become a regular feature! Various Governments
have made promises to improve the quality of Farmer’s Life without working on core issues like
Policy Changes, Infrastructure Development and Ease of Doing Agriculture! Will this change
any time soon?
Modi Government’s vision for New India involves “Sabka Saath Sabka Vikas”. Transformation
of agriculture sector is crucial in that respect as nearly half of the workforce in the country is
employed in agriculture.In 2015-16, Prime Minister, expressed his near-Term Target of Doubling
Farmer’s Income by 2022-23.
Is it practically possible or is it like one of the Populist Statement? Let’s try to understand.

COVER STORY
I. Current Scenario ~~ Inefficient & Monopolistic Marketing Channel
~~ As a country, India is ranked 5th in terms of GDP ¾¾ Indian Farmers must go through APMC’s to sell
behind US, China, Japan and Germany.However, if their Produce. These APMC’s are organised at
we dig into the details, India’s Per Capita GDP in Local Levels and managed by people who are
2019 is @ US$ 2,100 as compared to US$ 65,000 of politically backed. Studies have shown that
United Sates and US$ 10,300 of China for the same 70 – 80% of the Farmers sell their Produce at
Period. In Per Capita GDP, India is ranked 139thwhich Local Level at throw away prices as they lack
is even below Countries like Nigeria and Ghana. In holding Capacity, Negotiating Powers, Lack
Short, we are a Poor Country! of Information as well as Perishable Nature
~~ If we dig further into Sector wise GDP, Agriculture of Produce like Vegetable & Fruits. Although
Sector contributes around 16% to GDP with nearly Government declared Minimum Support Price
half of the Population dependent on Agriculture. (MSP) for 20+ Commodities, Government only
Considering these Numbers, India’s Per Capita Buys Wheat & Rice and Other Commodities
Agriculture GDP is @ US$ 700 (1/3rd of Overall trade below MSP in Market.
Per Capita GDP). At Current Conversion of Rs. 73 / ¾¾ Commission charged by Middlemen is
US$, Per Capita Agriculture GDP works out to be Rs. exorbitant. It is a known fact that the Price what
51,000 Per Annum or Rs. 4,300 Per Month, making Farmers get for Fruits & Vegetables is 1/3rd to
the Indian Farmer far poorer than Non Agri Worker 1/4th of the Price which Consumers pay for. e.g.
in India! Till Date, Government of India’s initiatives As per Casual Conversation with one of the
were focused on Food Security & increasing the Agri Farmer few Months ago in Lasalgaon (Near
Output. Now, the focus has changed on increasing the Nashik, Maharashtra), Onion were trading at
Farmer’s Income. Rs. 6-7 / Kg at local level whereas Price what is
being charged to Final Consumer in a City like
II. Issues & Challenges Mumbai was in the range of Rs. 20/ Kg. Neither
India’s rapid Economic Development started post Consumer nor Farmer is benefitted, and the
liberation of Industry in 1991. Agriculture was left behind Middlemen / Traders make a merry out of the
at that time (in terms of carrying out Reforms) , which whole Process.
resulted into Sectoral Imbalances as growth rate as seen i. Farmers complain of low farm harvest
in Manufacturing and Service Sector was not visible in prices; Consumers complain of high retail
Agriculture as the Sector Growth was lower at 3-4% p.a. prices and both groups suffer from large
Major Issues which has adversely impacted growth of price spread between “Farm to Fork”.
Agriculture and Farmer’s income are as follows: ii. Consumer favoured Trade Policies where
~~ Lower Productivity there is a possibility of prices to rise which
India’s Farm Yield is 30-50% lower than that of can benefit Farmers, the Government
Developed Nations. Table below compares Yield Per imposes Trading and Hoarding restrictions
Kg for Cereals (Wheat, Rice, Maize etc.). Reasons along with Import
for such low Productivity are:
~~ High Dependence on Farm Income
¾¾ Fragmented Land Parcels (Average size of Land
Holding: 1.08 Hectare), ¾¾ As already highlighted, around half of the
Country’s Total labour Force is engaged in
¾¾ Lesser Crop Intensity (60% of Land is unused
Agriculture & Allied activities. Unlike other
during the Year due to unavailability of
Countries where, Agri Jobs were replaced by
irrigation),
Non Agri Jobs as the Economic Development
¾¾ Minimal use of Technology and takes place, the pace of moving from Agri to
¾¾ Heavy dependency on Monsoon Non Agri Jobs was at a lower rate in India due
to lesser creation of Non Agri Jobs along with
Cereals Yield in 2017 (Kg per Insufficient Skill Development& Lower Level of
Country
Hectare) Higher Education in Rural Areas.(less than 5%
of Rural Male Population having completed till
USA 8300 Graduation)
China 6000
~~ Lower Investment from Private Sector
Brazil 5200
¾¾ Investments to GDP ratio in agriculture at
Russia 3000 Approx. 13% is very low.Regulatory restrictions
on Marketing and absence of business-friendly
South Africa 5600 environment acts as a deterrent for corporate
India 3200 investments.

COVER STORY
~~ Irrigation been developed by the Private Sector. After
Still today, Indian Agriculture is heavily dependent Modification of the Act, Situation will change,
upon vagaries of Monsoon as nearly half of the and we can see large investment being attracted
Farmlands are not irrigated. Agriculture Production is towards Storage Facility. This will also help in
widely fluctuated depending upon whether Monsoon arresting the Fluctuations in Commodity Prices
is good or bad. (Rock Bottom Price during Harvest Season &
Spike in Price in Lean Season )as Commodities
III. Way Forward will be available throughout the Year. Storage
Facility will also help in arresting Wastages
By undertaking the Measures to address issues and
which are currently in excess of 5% of Total
Challenges mentioned earlier, there is a scope to increase
Produce.
Farmer’s income and double it in near future.
¾¾ Bill on Contract Farming
~~ Introduction of 3 Farm Bills by the Current
Government is the step in the correct direction. The Farmer (Empowerment and Protection)
Although there is a big hue & cry by Opposition Agreement of Price Assurance and Farm
while these Bills were introduced, if these bills are Services Bill, 2020:
implemented in its True Spirit, it will help in solving At the beginning of the Season, Farmers decide
major Problems related to Farmer’s. the Crop to be sown based upon Crop which got
the better prices in Last Season. e.g. If onion
¾¾ Bill on Agri Market gets good price last season, everybody is after
(Farmer’s Produce Trade and Commerce onion and next season prices drop sharply due
(Promotion and Facilitation) Bill, 2020): to higher Production of Onion. In the event of
Farmers are not able to get the Price lesser than
Currently Agriculture is in the Scope of States.
Cost of Production along with an earlier burden
APMC Act was passed in 2003. However,
of Loan results in many farmers committing
implementation of the same at various States
Suicide. Farmers / FPO’s will be able to directly
level was patchy and did not brought the desired
enter into an Agreement with Manufacture’s /
results. Current Act will give Power to Central
Agri Producer’s thereby ensuring the Confirmed
Government to empower Farmers to sell Agri
Demand for their Produce and locking the Price
Produce outside APMC’s. This will help in
which they will get.
creating Competition for APMC’s as Private
Players / Manufacturer’s like ITC, Kissan would Linkage of Farmers and Private Companies will
be able to get the Produce directly from Farmers help in creation of Non Agri Jobs with these
/ Farmer’s Produce Organisations (FPO’s) Companies
thereby discovery of better Prices, elimination of
Middlemen Commissions, Mandi Charges etc. ~~ Diversion of Labour from Agri Job to Non Agri
Job
Strong Opposition by Northern States like
Punjab as they will lose high amount of ¾¾ Creating of Jobs in Manufacturing has become
Fees being charged by State Government a challenge especially due to Automation and
while Commodities are being sold through Robotics Processes being implemented.
APMC’s. ¾¾ Government can create and/or Support in
creating Agri Infra, Distribution and Logistics
¾¾ Bill related to Commodities related Chains to creating Jobs
(The Essential Commodities (Amendment) ¾¾ Initiatives like Skill Developmentmake in India
Bill, 2020: / Atmanirbhar Bharat may also help in Non-Agri
This Act was passed somewhere in 1950’s at the Job Creation.
time when there was a Shortage of Food Produce
in India and Country had to revert to Import to ~~ E-NAM
secure Food Security. However, over a period of ¾¾ Since 2016, Government has started Electronic
Last 60- 70 Years, as Growth of Food Production Portal called “e-NAM” for better Price
has surpassed the Population Growth, India has realisation by connecting Mandi’s across the
turned as a Net Exporter (5% of Total Agriculture Country. However, as on Date less than 10%
GDP in 2018-19) as compared to earlier position of Mandis are interconnected. Also, Success of
of Net Importer. To ensure Food Security, e-NAM is limited due to issues associated with
Essential Commodities Act keeps restrictions it. If Government can work closely to address
on Quantity of Agricultural Commodities that this issue, this Initiative can gather Success.
can be stored by Traders. Due to the uncertainty
towards storage of Commodities, Bigger
Warehouses Storages / Cold Storages have not

COVER STORY
~~ Focus on Livestock Productivity IV. Conclusion
¾¾ Livestock constitute more than 15% of Agri Doubling of Farmer’s Income in Real Terms (Net of
Income. Focus should be on Improving Inflation) in 7 Years i.e. from 2015-16 to 2022-23 calls for a
Productivity of Low Producing Animals growth of 10% p.a. More than 4 Years have been passed from
(Average Annual Milk Yield of Indian Cattle is the announcement of Government. Accordingly, we should
50% of Global Average) have crossed the 50% of the Target. However, various Data
points are suggesting that Farmer’s income has not increased
~~ Irrigation by more than 3-4% on Yearly basis. Additional Support of
¾¾ Pradhan Mantri Krishi Sinchan Yojana& Rs. 6000 Per Year has been given to Small & Marginal
Interlinking of Rivers should be given Priority Farmers from Current Year which may accounts for 5-6% of
their Income. No Prices for guessing that in all probabilities
¾¾ India use 2-3 times the water used to produce
Government will not be able to meet the Target as Major
1 tonne of food in major agricultural countries.
Initiatives, Amendments &Introduction of Various Acts are
Efficiency of water usage should be developed
still in Pipeline to bring out improvements in Productivity,
through Technologies like Drip, Sprinkler etc.
irrigation, Infrastructure and better Price Realisation.
¾¾ Today Farmers need better irrigation facilities
Better Price Realisation through APMC Act has the
than Populist Measures like Fertiliser Subsidy,
Potential to increase Farmer’s Income by 50% if the same
Food Subsidy and Loan Waivers!
is implemented well. Steps taken by Government in recent
times seem to be in right direction and may have significant
~~ Focus on R&D
impact on improving Farmer’s Income!
¾¾ Less than 1% of the Agricultural GDP in India
is spent on R&D. As per Experts, there is a Poor References
Connect between “Lab to Land”. Upgrading
1. https://data.worldbank.org
farming to high-tech using Green House
Cultivation, Poly houses, Precision Farming etc. 2. Doubling Farmer’s Income – NitiAayog
will reduce average cost & raise farmers income.
¾¾ As suggested by some of the Experts, A complete
overhaul of education in Agri Universities and [email protected]
research in scientific institutions can help
OFFICE BEARERS OF WIRC OF ICAI OFFICE BEARERS OF EIRC OF ICAI

FOR THE YEAR 2020 - 2021 FOR THE YEAR 2020 - 2021
CMA Harshad S Deshpande - Chairman CMA Ashis Banerjee - Chairman

CMA Dinesh Kumar Birla - Vice Chairman CMA Arundhati Basu - Vice Chairperson
CMA Ashishkumar S Bhavsar - Hon. Secretary CMA Nishant Kumar Singh - Secretary
CMA Mahendra T Bhombe - Treasurer CMA Abhishek Kumar Singh - Treasurer
OFFICE BEARERS OF SIRC OF ICAI OFFICE BEARERS OF NIRC OF ICAI

FOR THE YEAR 2020 - 2021 FOR THE YEAR 2020 - 2021
CMA S. Papa Rao - Chairman CMA Harkesh Tara - Chairman

CMA D. Munisekhar - Vice Chairman CMA Shailendra Kumar Paliwal - Vice Chairman
CMA R. Vishwanath Bhat - Secretary CMA Manish Kandpal - Secretary
CMA K. Rajagopal - Treasurer CMA Santosh Pant - Treasurer

COVER STORY
AGRICULTURAL
TRANSFORMATION
TO BRING THE SDGs TO
FRUITION
Abstract
Surmounting the unparalleled and

complex challenges that the entire planet
faces demands transformative action and
measures, encompassing the principles
of sustainable development that leave no
one behind. Looking forward, the route
to inclusive prosperity and well-being
CMA (Dr.) Debdas Rakshit
Professor of the people is clearly marked by the
Department of Commerce aspirational goals set by the UN member
The University of Burdwan, East Burdwan states in the 2030 Agenda for Sustainable
Development. Agriculture, being a prime
linkage between the planet and people,
can play a big part in addressing the
future needs of the world along with
the sustainable management of natural
resources. Therefore, the paper focuses
on the transformation of the agricultural
sector to achieve sustainable development
goals by making the agricultural system
Ananya Paul
Research Scholar
more efficient, productive, and resilient
Department of Commerce in a socially-responsible, economically-
The University of Burdwan, East Burdwan feasible, and environmentally-sustainable
manner.

COVER STORY
O
Introduction and people-centric sets of 17 individually. A holistic approach is
ur planet is facing transformative and universal goals required to fulfill the global vision
multiple unprecedented to achieve sustainable development of sustainable development for
and intricate challenges in broad-spectrum has resulted in the planet, people, and long-term
during this century. wide recognition of the growing prosperity. The agricultural sector
The 2030 Agenda for Sustainable significance of the agricultural sector is definitely the main focus of SDG-
Development adopted by the United in socio-economic development. At 2, which is destined to ‘end hunger’
Nations (UN) member states in 2015 present, the agricultural sector is the but it has the potential to address
provides a global commitment to act world’s leading employer and the issues relating to alleviating poverty,
together to overcome these challenges main provider for food and nutrition combating climate change, water and
and transform the earth into a to all and livelihood security to about energy use, responsible consumption,
sustainable pathway for the current 40% of the population. Hence, this and production, among others. Better
and future generations. It encompasses sector is well-placed to contribute to than any other sector, the agricultural
17 Sustainable Development Goals achieving the SDGs. sector is the connecting thread
(SDGs) which integrates social, In developing economies like that holds all the SDGs together.
economic, and environmental India, the agricultural sector plays a According to the Food and Agriculture
dimensions with closely interwoven pivotal role. Nearly half of the Indian Organization (FAO) of the UN, “food
169 targets to shift the planet onto workforce is engaged in agricultural and agriculture lie at the heart of
a resilient and sustainable course activities which contribute to around the 2030 Agenda for Sustainable
to transform the standard of living 15-16% of Indian GDP. Agenda Development.” The linkage between
along with restoring and managing 2030 recognizes that no longer we the SDGs and the food and agricultural
the natural resources sustainably. can consider livelihoods, food, and sector is diagrammatically depicted in
The adoption of these comprehensive management of natural resources Table-1 below.
Table-1-SDGs and their linkage with the food and agricultural sector.
Goals Linkage of SDGs with food and agricultural sector
1. No poverty Around 80% of poor people reside in rural areas.
2. Zero Hunger Food is produced for everyone, yet around 800 million people remain hungry.
3. Good health and well-being Nutrition is essential for good health.
4. Quality education Nutritious food is critical to learning.
About half of the world’s food is produced by women but they do not have much
5. Gender Equality
access to land and resources.
6. Clean water and sanitation The water scarcity problem can be addressed through sustainable agriculture.
7. Affordable and clean energy Modern food systems highly rely on fossil fuels.
8. Decent work and economic
Growth in agricultural activities can reduce poverty by half in low-income economics.
growth
9. Industry, innovation, and
In developing countries, agriculture accounts for one-fourth of the GDP
infrastructure
10. Reduced inequality Through land reforms, there can be fairer access to rural land.
11. Sustainable cities and com-
Unmanageable urbanization can be deterred through rural investments.
munities
12. Responsible consumption
Around one-third of the food produced is wasted or lost.
and production
13. Climate action Agriculture has the potential to respond to climate change.
14. Life below water Around 20% of animal protein is given by fishes daily to about 3 billion people.
15. Life on land Forests are the home for around 80% of the terrestrial biodiversity of the world.
16. Peace, justice and strong
Ending hunger can significantly contribute to world peace and stability.
institutions
17. Partnerships for the goals Partnerships help in raising the voice of the hungry.
Source: Food and Agriculture - Key to achieving the 2030 Agenda for Sustainable Development, FAO, 2016.
The challenges faced by the world in terms of population growth, deforestation, climate change, global warming, etc. have
enhanced the need for sustainable development globally. Food and agriculture, being the main connection between the planet

COVER STORY
and people, can aid in achieving several affordable high-yield variety seeds, Nutrition in the world, 2020 report
SDGs. However, the pathway of modern planting materials, and of FAO, around 14% of the total
linkage between agriculture and SDGs agro-technology. There is a need to population in India is undernourished.
can be either direct (like for SDG-2) enhance the quality of farmers through Abraham and Pingali (2020)’s
or indirect (for other goals). Achieving technical education, improving study reveals that an increase in
SDGs demands transformation farm organization, water and land agricultural growth and decrease in
towards sustainable agricultural management, adopting scientific hunger are correlated. Combatting
activities, reinforcing sustainable crop rotation, organic farming, and malnutrition and hunger is not just
management, and utilization of the expansion of institutional credit about augmenting the production of
prevailing agricultural system to facilities to farmers. For instance, in food, but also to enhance the quality
preserve the ecosystem and sustain Sub-Saharan Africa, a farmer training and nutrient content of the food,
food production. How the agricultural program ‘Good Agricultural Practices’ boost incomes, develop resilient food
sector can be transformed to achieve and skill and entrepreneurship system and reinforce agro-markets to
SDGs has been portrayed in this development program ‘Farmer ensure that people can get access to
research article. Business School Training’ has resulted safe, healthy and nutritious food. A
in a 185% increase in crop yields and blend of social protection measures
SDG-1-No Poverty: 626% in incomes. like cash transfer, healthcare,
There has been a sharp fall in the The focus should also be given on providing income security, etc. and
contribution of the agricultural sector pricing issues and agro-marketing. targeted smallholders and pro-poor
to India’s GDP. From around 51.9% Price monitoring should be investments in constructive activities
in 1950, it stands around 15.96% in undertakenand frequent forecasting will help to eliminate hunger and
2019. Also, the employment level of the main agricultural commodities poverty by providing better nutrition,
has decreased from around 69.4% for timely trade-related decisions. food, healthcare, decent employment,
of the total workforce in 1950 to The government should guarantee and education.
about 42.39% in 2019. Agriculture the minimum price of the agro- There is a need to boost physical
is the main source of livelihood for products, strengthen and widen and economic access to varied,
the rural and poor population. So, market infrastructure to aid the nutrient-rich, and healthy food by
the growth and development of this farmers to sell their commodities at way of nutrition-sensitive agriculture
sector is key to achieving this goal. better prices, promote cooperative and food processing, nutrition-driven
A study by Thirtle et al. (2003) based approaches to marketing especially technology, horticulture crops having
on Asia shows a reduction of 0.48% for smallholders and eliminate market nutritional value, and bio-fortification
in poverty with 1% rise in agricultural distortions to amplify opportunities to make agriculture more sustainable
productivity. As per the proceedings for every layer of the agricultural and food more diverse, nutritious and
of the National Conference on SDGs system nation-wide. Development accessible. It is essential to leverage
organized by Trust for Advancement of basic rural infrastructure like existing programs like Rashtriya
of Agricultural Sciences, Indian transportation, market, storage Krishi Vikas Yojana, National
Council of Agricultural Research and capacity, communication, etc. is vital Rural Livelihoods Mission, etc. and
International Food Policy Research to provide rural farmers with better women empowerment in agriculture
Institute, the prime factors responsible access to land, agricultural inputs, through providing them with land
for the decline in poverty during the services, resources, technologies, and property rights, forming self-
period 2005 to 2012 are economic tools, finance, and ensure availability help group, women’s cooperatives for
growth rate of around 7-8% p.a., of supplies to farmers. Additionally, enhancing convergence of nutrition,
agricultural growth rate of about 4% diversifying production such as agriculture, health, and other social
p.a., rise in rural and agricultural integrated crop-livestock, crop- initiatives. In the poor and middle-
real wages, rise in rural non-farm aquaculture and agroforestry methods income countries, around 20-40%
employment level, and introduction of can enhance productivity along with of crop production is lost due to
various social security programs like ensuring incomes during extreme climate conditions, insufficient pre-
MGNREGA, etc. Hence, improving climate and lean season. andpost-harvest facilities, and market
agricultural productivity is key to variation. Therefore, it is important to
alleviating poverty and transforming SDG-2-Zero Hunger: build adequate local storage facilities
the livelihoods of the rural population The agricultural sector is uniquely for food preservation including
across the globe. placed to reduce both hunger and warehouses, cold chain storage,
The main cause of low productivity poverty. Accomplishing goal-1 will etc. and provide farmers with risk
is fragmented or small holdings also help to achieve goal-2 since management tools to help in managing
of land, lack of proper irrigation, alleviating poverty is a way to end climate and market variations.
marketing and credit facilities, hunger. There is sufficient food on
poor infrastructure, etc. To enhance the planet for everyone, yet around SDG-3-Good Health and Well-
productivity, farmers, especially the 800 million people remain hungry. being:
smallholders, should have access to As per the State of Food Security and According to the estimates of

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FAO, around 20% and 34.7% of the population. Knowledge-sharing in regarding food preparation, improved
children under 5 years of age are rural areas should emphasize building nutrition, and feeding practices.
underweight and stunted respectively capacities supported by bringing
and about 51.4% of women between together farmers’ knowledge through SDG-6-Clean Water and
15 to 49 years of age are anemic. farmer field school to improve skill, Sanitation:
Transforming agriculture through encourage agronomic agricultural Agriculture has a high role to play
developing a resilient food system, methods and techniques and reinforce in the sustainable management of
adopting social protection measures, the awareness and understanding water since around 80% of freshwater
etc. to provide people with better of the prospects for employment in consumption in India is for agricultural
access to nutritious food, healthcare, rural areas. Also, it is essential to purposes. If the current pattern of
decent employment, etc. will not only provide rural youth and women with consumption continues, then by
help to achieve goal-2 but also goal-3 education and training on sustainable 2025, about two-thirds of the global
since nutritious food is vital for being and socioeconomic entrepreneurship population might be living in water-
in good health. Abraham and Pingali encompassing skill development and stressed areas (FAO, 2018). Hence, it
(2020)’s research delineates that linking agriculture to services and is critical to building up a water-secure
sustainable agricultural development industries. world. As a part of the sustainable
using policies and measures targeting water management program for
small farmers has brought about SDG-5-Gender Equality: the agricultural sector, targeted
greater affordability to food which Rural women make an important investments in water might have
has ultimately declined stunting and contribution to agriculture which considerable implications on water
wasting in Asia. Adequate measures remains under-recognized. According sustainability. Also, cross-sector water
should be taken by the government to the Oxford Committee for cooperation at every stage should
to promote a nutritious and healthy Famine Relief 2018, around 80% be promoted as a comprehensive
diet through diversification of crop of economically active women are process involving all stakeholders.
cultivation, nutrient-rich food and employed in the agricultural sector Sustainable investment in irrigation is
agricultural system, nutritious in India, comprising about 33% of essential to minimize water wastage.
school feeding programs, sustainable agricultural workforce and about Drip irrigation is an efficient method
agriculture, crop cultivation having 48% of self-employed farmers. to water the crops with minimum
nutritional and medicinal value, and Regardless of their high level of wastage. Organic farming can also
probing the potential of underutilized participation in agricultural activities, curtail down water usage. The use of
animal breeds and food crops which most of the women have limited mobile apps to assist the farmers in
can also play a vital role in improving decision-making power and access irrigation management is increasing
nutritional and health state of both to land. Global Agriculture and Food in certain countries. For example, the
ruraland urban people. Security Program indicates that the FieldNet Mobile app developed by US
productivity rate of women farmers and Canada, allows its users to monitor
SDG-4-Quality Education: is 25-30% less than the men farmers, and control irrigation equipment from
To ensure quality education, the mainly because of differences in the smartphones, tablets, and computers.
focus should not only be on formal use of resources, limited land tenure Also, water can be conserved through
education but also on technical rights, and inadequate access to farm rainwater harvesting by watershed
education, skill development, building equipment, inputs, and information. development which can be used
capacities, and sharing knowledge. Bridging this gap by providing women for farming. Field-based water
However, the National Education farmers with adequate farm resources management techniqueslike contour
Policy 2020 has considered vocational and information will increase overall cultivation, field bunds, broadbed-
education along with formal education productivity leading to around 12- and-furrow, conservation agriculture,
to impart vocational training both 17% decline in the number of people and vegetative bunds can be used.
in urban and rural areas. As per the going hungry. So, it is important to To enhance water efficiency and
new policy, in all the educational encourage women’s participation, management in agriculture, there
institutions, vocational education decision-making, and leadership is a need for capacity development
programs will be incorporated into in self-help groups and farmers’ at every level. The sustainable
mainstream education in a phased organizations, ensuring equitable agricultural system with improved
manner. access to land, other natural resources, knowledge, innovation, research, and
Agricultural extension services help financial resources, agricultural- implementation towards sustainable
the farmers and rural people to upgrade based productive assets, cash-for- management and use of water is
their skills and knowledge that they work employment and training required to meet the growing food
need to thrive. The government along opportunities for women. Agro- demand.
with other profit and non-profit making technology, agricultural extension,
organizations in the private and public and other interventions should be SDG-7-Affordable and Clean
sector should render such services made more gender-sensitive and Energy:
to impart knowledge to the rural women’s awareness should be raised Energy is essential for agricultural

COVER STORY
activities like irrigation, tillage, for the rural population will pave the to the forms of organizations like
transportation, fertilizer production, way for sustainable economic and private-public partnerships, farmers’
mechanization, food processing, pro-poor growth. The focus should cooperatives, etc. The government
and storage. The use of fossil be given on agricultural and labor should encourage innovation and
fuel inputs in the agricultural and productivity which will help to reduce investment in the agricultural domain
food industry accounts for around poverty by raising incomes, creating to benefit the farmers, especially
7-8% of greenhouse gas (GHG) rural employment, and augmenting the the smallholders by considering
emissions globally. (FAO and United export of agricultural products since issues relating to upgradingrural
States Agency for International this sector is less import-intensive infrastructure to improve access to
Development, 2015). Access to and more labor-intensive than other resources, technologies, finance,
affordable, adequate, and clean energy sectors. modern tools, and equipment, boost
is vital to reduce dependency on fossil It is pivotal to build proper sustainability and resilience, create
fuels in agriculture. The use of biofuels infrastructure to facilitate the farmers, new market opportunities, reduce
and improved technology for the especially smallholders get better risks, raise income and promote
utilization of bioenergy can contribute access to the market to sell their diversification. Investments should
towards ensuring clean energy and products at fair prices and also export be increased in agricultural R&D,
improving rural livelihoods. Biogas their products. Entrepreneurship advisory services, and extensions
can be produced from organic needs to be promoted across the along with capacity development to
wastes that remain on the farm or at agricultural and food sector that will augment the agricultural innovation
processing units. Food crops can be generate employment and growth. system and infrastructure of the
diverted to produce renewable energy, Investments in agricultural research nation with improved, innovative and
most notably, corn is being utilized by and development (R&D) can be technological processes, products,
many farmers to make ethanol which encouraged to breed nutrient-rich and practices. Also, better provision
is used as fuel. The farmers can install and high-yield crop varieties, bio- of knowledge, skill, and information
wind turbines to use the wind blowing fortified crops, support technology is essential to facilitate their use.
over their farms to generate electricity for agricultural diversification and The existing capacities and resources
which can be used for irrigation and promote skill and human capital within the private and public sectors
other purposes. Use of solar and wind development to enhance agricultural need to be integrated to develop
energy for generating electricity should productivity and create employment. simple, useful, and practical solutions
be promoted in the agricultural areas There is a need to build an institutional and make products and services
where good solar and wind energy framework and reinforce links available to the rural population, or
exists. To trim down fertilizer use, between informal food and agricultural else it might be unaffordable for them.
nitrogen-fixing legumes can be grown sector with the rest of the economy
as green crops and organic manures to aid integrate informal players and SDG-10-Reduce Inequalities:
can be used. To retain soil content enterprises to enhance productivity The people living in rural areas
and reduce mechanical disturbances, and wages. Also, investment in social are amongst the most marginalized
cover crop or crop rotation along protection measures, specifically, if section in society. They have limited
with diversifying crop species should combined with targeted agricultural organizational capacity, restricted
be practiced. The use of clean and and pro-poor interventions, will have a bargaining power, and lack of access to
sustainable energy efficiently with sweeping impact on poverty reduction, information, knowledge, and resources
low-carbon energy techniques to meet building resilient livelihoods, and which usually leave them unprepared
the growing energy need should be economic growth. or ill-equipped and are not able to
promoted to accomplish this goal.
benefit from scope and opportunities
SDG-9-Industry, Innovation and resulting from agricultural and rural
SDG-8-Decent Work and Infrastructure: transformation. Being the natural
Economic Growth:
Innovation can be regarded as resource managers and food producers
Agriculture is the driver for one of the driving forces behind of the nation, it is vital to reward
sustainable economic and pro- agriculture and rural transformation. their hardwork as part of resilient
poor growth. In most developing In developing countries, agriculture and sustainable food and agricultural
and under-developed countries, the contributes to around one-fourth of system through addressing inequality
majority of people live in rural areas. the GDP, therefore government and issues. Investments and policies
Also, the lion’s share of the world’s other organizations should embrace aimed at providing equitable access to
poor lives in rural regions and is modern technologies to build resilient resources, community participation,
dependent on agriculture. In India, the agricultural infrastructure and foster and decision making of smallholder
rural population accounts for around innovation in this field. Besides farmers and other marginalized groups
65.53% of the total population in technologies and practiceswhich can develop the condition for inclusive
2019 (World Bank data). Therefore, includehybrid crop varieties, and equitable national growth. Specific
promoting the development of rural biotechnology, agroecological interventions are required targeting
areas and ensuring decent employment farming, etc., innovation also relates vulnerable groups, people living in

COVER STORY
remote areas including refugees, social and environmental implications sustainable productivity growth, and
indigenous people, and migrants while making decisions to make the use of innovative and sustainable
who are often underprivileged along production system more resilient and agronomic techniques coupled
with supporting the participation sustainable. Post-harvest activities can with climate risk management
of smallholder farmers in producer be improved by sharing knowledge, agro-technologies to lessen carbon
organizations, networks, and information, and technologies which emissions and improve climate
cooperatives to aid them to gain better will also enhance farmers’ incomes, resilience. Adopting conservation
access to knowledge and resources, reduce wastages, and boost the techniques such as direct-seeded
establish small enterprises, enhance efficiency of the food system. Policy rice, laser land leveling, zero tillage,
participation in community decision- decisions can play an important role in etc. also have the potential to reduce
making, and work their way out of the combating food loss and encouraging the emission of GHGs and increase
state of poverty and deprivation. The sustainable production and carbon sequestration.
emancipation of these marginalized consumption through interventions to The government should encourage
groups is critical to boost agricultural cut down overproduction and impart private sector innovation and public-
productivity, achieve sustained and nutrition education among people private partnerships for agricultural
equitable economic growth, and especially rural people to make a shift R&D, provide financial incentives
minimize regional inequalities. towards safe and nutritious diets with targeting sustainable performance and
lower energy use and environmental ensure dissemination of up-to-date
SDG-11-Sustainable Cities and footprint. Greater commitments and relevant information pertaining
Communities: towards developing a circular to resource use efficiency, sustainable
In developing countries, economy in the agricultural system practices, and risk management.
unstructured and unmanageable by recycling and reusing residues and Policies that are intended to address
urbanization mainly occurs due wastages through composting, etc. to the issue of climate change must
to migration of the rural people to ensure that materials and products are emphasize knowledge sharing
urban areas in the hope of getting regenerated and recycled in production systems and outcome or productivity-
better employment opportunities and lines can promote the transition based farmer incentives that
improving the standard of living. towards sustainable production. enhance the capacity of farmers
Rural and agricultural development to achieve sustainable agricultural
can address the issues that compel SDG-13-Climate Action: and productivity growth by way of
rural people to migrate by developing Agriculture is a climate-sensitive adaptive and mitigating practices to
rural and agricultural infrastructure segment, being both a contributor to fight against climate change.
that will create employment and global climate change through GHG
entrepreneurial opportunities for the emissions and highly susceptible to SDG-14-Life below Water:
rural youth which will go beyond its consequences. Climate changes The pressure of agricultural
farming, like small poultry or dairy including rising temperatures, activities on water quality arises from
production, horticulture enterprises, droughts, changing rainfall patterns, farming, livestock, and aquaculture.
food processing, etc. Directing and floods are increasingly threatening Agricultural runoff discharges huge
required resources to the agricultural the production of crops, fisheries, amounts of chemical fertilizers, saline
and rural sectors resulting in more and livestock, thus driving the rural drainage, etc. into water bodies that
resilient livelihoods, increased food population deeper into poverty. cause harm to marine life. Excess
security, better access to required According to the Organisation nutrients enhance the growth of algae
facilities, and social protection will for Economic Cooperation and in the marine environment leading to
ultimately reduce rural to urban Development meeting of agricultural eutrophication. According to research
migration. ministers, 2016, around 17% of by Stanford University scientists,
GHG emissions are from agricultural large-scale farming in coastal regions
SDG-12-Responsible Consumption activities. Therefore, the agricultural leads to massive algae blooms in
and Production: sector has a major role to play in seawater. So, it is essential to reduce
As per the estimates of the UN, combating climate change through the use of chemical fertilizers by
in India, nearly 40% of the food adopting climate-smart and shifting towards organic farming,
produced is wasted or lost by diverse sustainable agricultural practices planting legumes (like peas, beans,
modes starting right from harvesting, that strengthen farmers’ resilience, lentils, etc.) between crops that help
processing, transportation, packaging, enhance or maintain productivity, and to convert nitrogen from air to the
and consumption. All the players decrease climate footprint. There is a form usable by plants and recycling of
in the food chain, from farmers to need for promoting organic farming to animal and farm residues. Field buffers
consumers, can contribute to reducing reduce the use of chemical fertilizers, can be planted to prevent nutrient
lossesand promoting sustainable production of biomass, solar and loss. Planting cover crops on bare
production and consumption patterns. wind energy as a substitute for fossil grounds can reduce surface runoff.
Incentives should be taken to increase fuels, investment in agricultural R&D Leadership role can be played by the
awareness among the farmers about the to spur innovation that will enhance farmers through collaborating with a

COVER STORY
wide range of stakeholders including Soil Health Card program initiated by sector. There is a need to involve
state governments, non-profit and the government in 2015 to educate the with entrepreneurs and harness the
farm organizations, etc. across the farmers about the judicious use and potentiality and opportunities of
entire watershed to minimize nutrient application of fertilizers should be the private sector, which includes
pollution to water bodies. effectively implemented by testing the farmer cooperatives, organizations,
There is a need to promote soil of individual plots through sensor- medium and small-sized enterprises
aquaculture in a socially and based technology. The ‘Umbrella along with international corporations.
environmentally responsible Program on Natural Resource Partnerships and collaboration are
manner to fulfill the increasing Management’ launched by NABARD especially relevant in agricultural
need for nutritious and safe food. should be popularized among the value chains and logistics, where
Effective regulation is required farmers. Integrating farming with governments, producers, private
on stopping overfishing, illegal other elements such as agroforestry, actors, and international organizations
fishing, and unmanaged aquaculture tree-crop-livestock, mixed cropping, can work cooperatively towards
augmentation. Marine ecosystems etc. will make agricultural systems sustainable agricultural development.
need to be sustainably managed to more resilient and improve ecosystem
ensure sustainable aquaculture. services. Conclusion
The SDGs as specified in the 2030
SDG-15-Life on Land: SDG-16-Peace, Justice, and Strong
Agenda for Sustainable Development
Institutions:
At present, the key challenge is how aims at protecting the planet, ending
to enhance agricultural productivity The development of the agricultural poverty and hunger, sustainably
to address the increasing demand for sector can significantly contribute to managing natural resources, building
food and bioenergy while sustainably peace by increasing employment and global partnerships, reducing
managing and conserving biodiversity incomes, thereby decreasing social inequality, and ensuring prosperity and
and decreasing the pressure on the frustrations that lie at the root of well-being for the global population
terrestrial ecosystem and natural violence and crime. Also, growth in by 2030. The agricultural sector,
resources. Although, sometimes it is the agricultural sector will generate being at the crux of this agenda, can
perceived that forestry and agriculture more revenues for the government, take an active role in achieving the
are conflicting land uses but properly which can be used for redressing SDGs. Transforming agricultural
managed forests have high potential grievances and problems of the systems should take into account
to contribute to food security as they disadvantaged populations. Strong a holistic approach to consider the
play an important role in water cycles, institutions and social infrastructure environmental, social, and economic
climate regulation, pollination, soil can also be developed in rural areas to aspects of sustainable development.
fertility, natural pest control and redress the grievances and complaints However, successful agricultural
resilience to environmental changes. of the rural farmers that will help in transformation requires measuring
Hence, there is a need to enhance peace-building in these areas. progress and monitoring targets that
agricultural yield to feed the increasing offer valuable information regarding
population without bringing more SDG-17-Partnerships for the the areas and groups of people that
forest land under agriculture. So, Goals: need to be focused on. Sustainable
efforts should be given in enhancing Transforming agriculture will agricultural development has high
crop productivity by using high- require extensive coordination potential to manage natural resources
yield variety seeds, crop rotation, and building partnerships among sustainably, revitalize rural landscape,
agro-technology, organic farming, the stakeholders in the food and bring inclusive growth, and induce
etc. to reduce deforestation. Other agricultural system, in addition favorable changes across the 2030
practices like contour plowing, use to international collaboration for Agenda.
of trees as shelterbelts, environment- recognizing multiple ways so that
friendly energy use, incorporating the agricultural sector can efficiently References
land management, and switching over contribute to social, economic, 1. Abraham M.,& Pingali
to more sustainable farming methods and environmental development. P. (2020). Transforming
will reduce harmful effects on natural For instance, in 19 countries in Smallholder Agriculture to
resources. Latin America, Asia, and Africa, Achieve the SDGs. The Role
Land degradation can be controlled partnerships supported by the New of Smallholder Farms in
through developing and timely Vision for Agricultural Initiative of Food and Nutrition Security,
monitoring of the Land Resource the World Economic Forum have Springer, 173-200.
Inventory that will help in carrying benefitted around 9.6 million farmers
2. Food and Agriculture - Key
out situation-specific interventions for (www2.deloitte.com). It is crucial
to Achieving the 2030 Agenda
land-use planning and management to building strategic and robust
for Sustainable Development.
scientifically. Protocols should be partnerships between the state and
FAO, 2016.
developed for the non-destructive non-state players to mobilize resources
and investments in the agricultural 3. National Conference on
process and techniques of soil analysis.

COVER STORY
Sustainable Development Asia and Latin America. un.org/
Goals,India’s Preparedness World Development, 31(12), 5. https://www.gafspfund.org/
and the Role of Agriculture, 1959–1975.
6. https://www.indiafoodbanking.
Proceedings and 6. Transforming Food and org/
Recommendations. TAAS, Agriculture to Achieve the
ICAR, & IFPRI, 2017. 7. https://www.mhrd.gov.in/
SDGs, 20 Interconnected
4. Shwartz, M., Ocean Actions to Guide Decision- 8. https://www.statista.com/
ecosystems plagued by Makers. FAO, 2018. 9. https://www2.deloitte.com/
agricultural runoff. Stanford
Report, 2005. Web-Addresses
5. Thirtle, C., Lin, L., & Piesse, 1. http://mospi.nic.in/
[email protected]
J. (2003). The impact of 2. http://www.fao.org/
research-led agricultural [email protected]
3. https://farmingfirst.org/
productivity growth on
poverty reduction in Africa, 4. https://
sustainabledevelopment.

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Research Bulletin, Vol. 46 No. III October 2020 (ISSN 2230 9241)
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COVER STORY
AN ENQUIRY INTO
THE ROLE OF MARKET
INTERMEDIARIES
IN INDIA’S ONION CRISIS
Avishek Roy
Assistant Professor
Department of Business Administration
Dinabandhu Andrews Institute of Technology and Management, Kolkata
Abstract
This paper assesses the extent to which market intermediaries have been responsible for the
crisis that onion markets have witnessed in the past few years. The paper found that commission
agents and wholesalers frequently indulge in price manipulation to purchase onions at pre-
decided prices instead of at auction prices. Big traders attempt to prevent entry of new traders
in the market by utilising their market dominance, in order to limit market competition. Traders
may also have resorted to hoarding of onions to take advantage of its price rise. This led to an
artificial shortage of onions in the retail markets. Imposing of high margins by retailers also
has caused sudden spikes in onion prices in retail markets.

COVER STORY
I
INTRODUCTION powers in these markets. As MARKET INTERMEDIARIES
n the last couple of years, intermediaries continue pursuing AND THE ONION CRISIS
onion prices have seen wide policies for strengthening their Onions are marketed largely
fluctuations. Onions are stranglehold on the markets, farmers through regulated markets or mandis
staple ingredient of Indian are made increasingly vulnerable. On (Kumar(2016)). These markets were
cooking. Rise in its prices causes the other hand, hoarding of onions established in various states under
distress to large sections of the by wholesalers and imposing of high the Agricultural Produce Marketing
population, especially the poor. This mark-ups by the retailers increases its Committee (APMC) Actwhich
makes onion a “politically sensitive retail prices. This lands consumers are aimed to regulate the marketing of
crop”(Chengappa et al(2012)Pg58). in extreme hardship. agricultural products. In Maharashtra
Apparently, unseasonal rains had This paper analyses the role played and Karnataka – two of India’s largest
curtailed supplies leading to a price by commission agents, wholesalers onion growing states, mostfarmers
rise. However, media reports have and retailers in deepening the onion have sold their harvest at the regulated
alleged that the shortage was artificial, crisis by depriving farmers of a fair markets. Majority of onion growers
as wholesalers had hoarded large price for selling onions; and also by are small and marginal farmers with
stocks of onion. Academic papers that making onions exorbitantly expensive meagre land holdings (Chengappa
analysed patterns of onion arrivals in for consumers. et al(2012),Pg27). Due to low
wholesale markets and onion prices productivity of onions in India (Setiya
(wholesale and retail) have made OBJECTIVES and Muthuselvan(2018)Pg12), the
similar observations. This paper has the following aims: output per farmer is quite low. Also,
Onion farmers seldom benefit there is risk of decay and sprouting of
i. To explore how intermediaries
from an increase in its retail prices. onions, as farmers cannot afford the
in the onion supply chain
Intermediaries (or middlemen) in the expenses for cold storage. By selling
exploit market inefficiencies
onion supply chain leverage their their produce at the APMC markets,
for establishing their
superior access to information or farmers benefit from swift disposal of
dominance oversale of onion
material resources and collude among the harvest, possibility of getting better
in the regulated wholesale
themselves to prevent farmers of prices compared to local markets and
markets
realising the best possible price for prompt cash payment.
ii. To assess how actions of
selling their harvest. By exploiting When onions are marketed through
intermediaries leads to the
imperfections already existing in regulated markets, the marketing
marginalisation of the farmers
the regulated wholesale markets and channel comprises of series of
and an exorbitant rise in retail
by utilising their connections with intermediaries (or middlemen) in
prices of onions
market officials,intermediaries are the form of commission agents,
sometime able to attain monopoly wholesalers/traders and retailers.
Marketing channel for onion
Source: Chengappa et al(2012),Pg37
Often, intermediaries are able to and market players drives down the vulnerable to price manipulations.
attain a dominant position in the price that a farmer gets for selling Here licensed traders collude among
regulated markets by exploiting his harvest at these markets (Banerji themselves to dominate the auction
market inefficiencies and by and Meenakshi(2002)).The APMC process. Thus, they are able to
leveraging various advantages that markets for wholesale onion trade at dictate terms, reducing the farmers
they have relative to the farmers. Lasalgaon, Pimplagaon and Nashikare to only spectators in the process
Inefficiencies in the APMC markets found to suffer from inefficiencies, of determining the purchase prices
along with collusion among the traders low competitiveness and are (Setiya and Muthuselvan(2018)).

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The dominance that intermediaries a strong nexus thrives between the as it was much lower than what
have over the onion markets stems commission agents and traders. they had expected to receive.This
from their (i) superior information Several observations provide clues to clearly indicates that intermediaries
and support networks, (ii) connections possible presence of collusion: dictate the APMC markets due
with market officials, (iii) greater i. Many wholesalers and traders tostrong intermediary networks,non-
financial resources, (iv) access to also act as commission agents. sustainability of farmer’s
onion storage and grading facilitiesand Playing multiple roles gives associations,low risk bearing capacity
their (v) ability to successfully them very strong incentive for of the farmers and their lack of
exploit the market imperfections manipulating prices. access to price information or storage
and infrastructural loopholes to their facilities. This leaves onion farmers
ii. Local traders and commission
advantage. with no other option but submit to the
agents, who buy onions on
Commission agents and wholesalers dominance of the intermediaries.
behalf of traders from other
are well connected among themselves states, try to procure bulk To consolidate their market
not only in the market where deals at pre-decided prices. dominance, intermediaries raise
they operate, but also with their Commission agents try to barriersfor blockingthe entry of new
counterparts in other markets across maintain strong relationships agents and traders in the markets.
India.These intermediary networks with the traders. Not only Working around APMC rules, large
collaborate among themselves and do they attempt to purchase tradersundertake diverse roles such
readily share information on onion onions at lower rates for the as that of commission agents, order
prices in their local markets.Thus, traders; but they also do not suppliers, forwarders cum store
during the auction process,commission insist on immediate payment. owners, transport/railway agent etc.
agents are well aware of prices from Agents even agreed to forgo a Together with long years of operating
outside markets.Contrarily, onion part of their commission in lieu in the APMC markets, this enables
farmers only have access to rates in of early payment. big traders to achieve strong hold
their local markets.Even for that, they onthe functioning of these markets.
iii. In APMC markets of the onion
are dependent on commission agents, By leveraging their linkages with
growing belt, most agents
friends or other people who regularly market officials, they succeed in
and wholesalers have been
visit these markets. Moreover, price securing market licenses for their
operating uninterruptedly for
information could be obtained only family members or in preventing
an average of 15 to 20 years.
at the time of sales and not before. new traders from obtaining licenses.
Long experience working with
It was further observed that farmers This strengthens their monopolistic
each otherhas fostered mutual
lacked awareness on various APMC position in the market and deepens
understanding among them on
marketing channels or other avenues market imperfections.
onion prices and gives them
for selling onions. Also, theirlevel of Infrastructure for bulk storage,
undue advantage in onion
knowledge on how to realise higher sorting and grading of onions is
trade.
proceeds from selling their harvestwas mostly in the hands of traders and
“abysmally low” (Chengappa et iv. Many markets have strong
wholesalers. Majority of their shops
al(2012)). trade associations. Their
have trading and storage areas
functioning leads to the
Strong interconnections between together with separate space for office.
creation of consensus among
intermediaries allow them to collude Traders pool onions purchased from
traders regarding prices.
among themselves in order to the markets into their pack-houses and
manipulate onion prices. Instead of v. Number of active market sort these into different grades as per
arriving at the purchase price through intermediaries falls during the the requirements of various buyers or
an unbiased auction; commission off season. Presence of lower regional markets. This adds value and
agents use price information obtained number of intermediaries helps traders to earn higher price.
through their networks in other creates oligopolistic conditions
With access to storage facilities,
markets to decide in advance the and encourages them to discuss
traders attempt to profit from onion
price at which they would buy onions and manipulate prices.
hoarding. After purchasing onions
in their local markets. Collusive Severe asymmetry in access from the APMC markets, traders
price fixation by the intermediaries to information places farmers at stockpile it instead to selling it onwards
prevents farmers from securing the a distinct disadvantage.They are to the retail markets. Consequently,
best possible price for their harvest compelled to accept the APMC prices an artificial onion shortage iscreated
through price auctions.In a particular due to want of other options. Even which raises prices and brings higher
case, auction when halted when prices where farmers were less dependent profits to traders.The media has blamed
reached a certain level and the produce on commission agents for obtaining many episodes of onion shortages in
was divided between two competing price information;they had to agree the past decade to its hoarding. To
traders (Chengappa et al(2012)). There to sell onions at prices decided by curb hoarding,raids were conducted
have even been allegations of “bid the agents.The prices however, against onion hoarders and arrests
rigging”, “secret bidding”. Evidently, were not satisfactory for the farmers were made Gujarat and Tamil Nadu

COVER STORY
(IndiaTV (2014)). Analysis of onion misusing their connections. Onion in India, National
arrival and price patterns in major Although hoardingis difficult to Institute ofAgricultural
onion consuming markets revealed prove unless traders admit it or raids Marketing
that prices increased while supplies are conducted and hoarded stocks 4. IndiaTV(2014):https://www.
decreased during the third week of are recovered;trends of onion arrival indiatvnews.com/news/india/
December. This recurrent pattern and price movement patterns clearly centre-ask-states-check-onion-
points towards retention of stocks indicates the possibility of hoarding. hoarding-retail-level-38621.
(hoarding) by the traders(Sharma et Government should closely monitor html
al(2011)). Retailers too, take undue onion prices so that consumers can 5. Kumar, Pramod(2016): Price
advantage of rise in wholesale onion buy onions at a reasonable price. Differences In Wholesale
prices (Gummagolmath(2013). Big
Prices, Retail Prices And
cities like Jaipur have witnessed high REFERENCES Price Realized By Farmers
retail mark-upsof176% (December
1. Banerji,A and For Onion And Grapes In
2008), 165.59% (December 2009)
Meenakshi,J.V(2002): Buyer Karnataka, Agricultural
and 159.29%(December 2010).
Collusion and Efficiency of Development and Rural
Even when wholesale prices dropped
Government Intervention in Transformation Centre
retailers did not pass on the benefit to
Wheat Markets in Northern Institute for Social and
customers by reducing retail prices
India: An Asymmetric Economic Change
(Sharma et al(2011)).
Structural Auctions Analysis, 6. Setiya,Pankaj and
Working paper 104, Centre Muthuselvan,E.R(2018): A
CONCLUSION
for Development Economics, Report on the study of Onion
Onions are said to bring tears to Delhi School of Economics. Value Chain, College Of
farmers, cheers to traders and fear
2. Chengappaet al(2012): Agricultural Banking
to consumers. Farmers should be
Competitive Assessment of 7. Sharma,P et al(2011):Prices
empowered so that they get a fair price
Onion Markets in India, of Onions: An Analysis,
for selling their harvest. Allowing
Agricultural Development Economic & Political Weekly,
contract farming or mandating
and Rural Transformation Vol XLVI No 2
NAFED to buy onions directly from
Centre Institute for Social and
the farmers instead of the traders have
Economic Change
been recommended. Measures should
be taken to curb the intermediaries’ 3. Gummagolmath,
K.C(2013):Trends in [email protected]
capability to indulge in collusive price
fixation or forming monopolies by Marketing and Export of
Kind Attention !!!

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COVER STORY
AGRICULTURAL COSTING –
OBJECTIVES AND SCOPE
Abstract
Economies are globalised but agriculture

is still localised. The data/information
access, analysis and application needs
and opportunities are to be met through
Agricultural Costing. The needs and
opportunities vary based on users and their
purpose viz., farmers, policy planners,
stakeholders associated with value chains
CMA Gopala Krishna Ayitam etc. The added dimension to these is the
Management Consultant need for protection of environment for the
Secunderabad
future generations. In this context, this
paper attempts to state the Objectives and
Scope for Agricultural Costing.
T
Preamble Indian agriculture is also the largest employer. In the post
he Mission of Agriculture can be stated as “To COVID 19 scenario, reverse migration saw millions reaching
meet the food and nutritional needs of global back to their native nests and engaging with agriculture
population; securing the livelihoods of millions in one or the other way. Agriculture’s contribution to the
through employment and entrepreneurship; and nation’s GDP is reported to have grown by 3.4 percent while
help achieve overall socio-economic inclusion”. overall GDP is reported to shrunk by 23.9 percent during the
first quarter of FY 2020-21.
India with nearly 140 million hectares of net sown area and
enviable ranking in the production of multiple agricultural On the global arena, in one sentence, the remarks of a
produce takes a prime position in the world of agriculture. visiting dignitary that “India can be the food factory for the
India is the third largest producer of food grains, second world” summarises the significance of India’s agriculture
largest producer of fruits and vegetables in the world. India is and associated sectors.
the largest exporter of Rice in the world, in the recent years. Notwithstanding the strengths and its significance,
India is also second most populous nation in the world1. agriculture is often under focus, for the challenges
Hence Indian farmers shoulder the responsibility of taking associated with it. Agriculture needs structured institutional
care of the food and nutritional needs of her population. engagement, investments, enabling policy and regulation;
these in turn demand decision support systems backed by
1
According to a newspaper report with 1.33 billion population India reliable data and monitoring mechanisms.
has already overtaken China as the most populous nation in the world.

COVER STORY
Agricultural economics has been contributing to the direction. The information in the management accounting
agricultural policy planning and supporting the State in the system is used for three different purposes: Measurement;
policy planning, resources allocation and others as relevant Control and Decision-making5
to the agriculture and allied sectors. Thus, while costing is used to ascertain costs under
Agribusiness, as first used by Prof. J H Davis and Prof. defined classification; cost accounting takes care of
Goldberg of Harvard2, started as a subset of agricultural accounting; both require due compliance with set principles
economics but gained prominence and became a stream by and practices. The purpose is to know costs, total or per unit
itself. In India agribusiness appears still in need of adequate or general compilations. Such compilations may as well be
attention and application. to meet specific context or purpose however following given
Agricultural Costing along with techniques and approaches principles and framework.
from Management Accounting can be of immense use to With the markets becoming competitive and resources
agriculture and agribusinesses. being scarce, emphasis and use of costing and techniques of
In the context of the above and with the stated Mission Management Accounting in decision making, planning and
of Agriculture, agricultural costing becomes essential, monitoring/controlhas been integral to overall management.
along with other domains like agricultural economics and However, the application and use, as of now, appears limited
agribusiness. This paper is to bring focus on objective and within the domain of agriculture, in particular when farmers
scope of agricultural costing considering the globalised are to be viewed as ‘agripreneurs’ and agriculture as a ‘for-
economies and still localised agriculture. profit’ economic activity.
Costing, Cost Accounting and Management Accounting Agriculture

The ICAI definitions of Costing, Cost Accounting and FAO definition of agriculture: “Agriculture includes
Management Accounting are as under. farming both animals (animal husbandry) and plants
(agronomy, horticulture and forestry in part). Similarly,
Costing: “The technique and process of ascertaining costs. aquaculture covers the farming of both animals (including
The technique in costing consists of the body of principles crustaceans, finfish and molluscs) and plants (including
and rules for ascertaining the costs of products and services. seaweeds and freshwater macrophytes). While agriculture
The technique is dynamic and changes with the change of is predominantly based on use of freshwater, aquaculture
time. The process of costing is the day to day routine of occurs in both inland (freshwater) and coastal (brackishwater,
ascertaining costs. It is popularly known as an arithmetic seawater) areas.”
process3”. In general, in India agriculture is referred to plants-based
cultivation while others associated with animals are referred
Cost Accounting: “’Accounting for costs classification to as allied activities. Horticulture often considered as subset
and analysis of expenditure as will enable the total cost of agriculture, predominantly refers to fruit and vegetable
of any particular unit of production to be ascertained with crops while certain others like plantation crops etc. also get
reasonable degree of accuracy and at the same time to classified under this.
disclose exactly how such total cost is constituted’. Thus, Agriculture is predominantly soil based while there are
Cost Accounting is classifying, recording an appropriate also other forms like hydroponics and aeroponics. Similarly,
allocation of expenditure for the determination of the costs other forms like contained agriculture basically in closed
of products or services, and for the presentation of suitably environments like shade-net based, polyhouses and poly
arranged data for the purpose of control and guidance of tunnels etc. are under practice. Even among the soil based
management4”. some of the emerging forms include indoor agriculture and
roof-top agriculture.
Management Accounting: Management accounting
Agriculture primarily relies on natural resources like land
is concerned with that accounting information, which is
and water while land is generally inherited or acquired or on
useful to the management. The accounting information
lease/tenancy; water is sourced through irrigation systems
is rearranged in such a manner and provided to the top
which is mostly public and supported by government.
management for effective control to achieve the goals of
Agriculture is significantly influenced by agro-climatic
business. Thus, management accounting is concerned with
conditions of the area.
data collection from internal and external sources, analyzing,
processing, interpreting and communicating information for Other resources used in agriculture include inputs like
use, within the organization, so that management can more seeds or planting material, fertilisers (chemical, bio or
effectively plan, make decisions and control operations. The organic and natural), crop protection material (pesticides
information to be collected and analysed has been extended and fungicides; chemical or bio or organic), finance (mostly
to its competitors in the industry. This provides more short term crop loans but can also include medium term
meaningful clues for proper decision-making in the right or long term loans for the purpose of land development or
acquiring equipment or machinery etc.) and certain facilities
A Concept of Agribusiness, Harvard University
2 as well as services support.
www.icmai.in
3
www.icmai.in
4 5
www.icmai.in

COVER STORY
The facilities and services support needs include help achieve overall socio-economic inclusion”.
warehousing, transportation, nursery, centres for primary Given the Mission of Agriculture and importance of
processes viz., ripening chambers, pack houses, drying agriculture for any nation, the Objectives for Agriculture
facilities, pre-cooling chambers, cooking facilities etc. Some Costing are stated as under.
of the critical services required are soil testing and advisory,
weather information and advisory, techno-managerial OBJECTIVES OF AGRICULTURAL COSTING
advisory throughout the crop cycle, market intelligence,
The objective of Agricultural Costing shall be to provide
market linkages and market access.
principles and framework along with concept and methods to
The crop cycle starts from the point of identifying the ascertain costs and their evaluation, analysis and application
agricultural field/crop, land preparation and till the produce in decision making, sustainable resources access, resources
is harvested, taken through the post-harvest practices and use optimisation and minimisation of risks; thereby working
sold in the market either in the raw or processed form. Some towards sustainable agriculture.
times farmers may retain some quantity of produce for their
Agricultural Costing shall contribute to the sustainability
consumption or use. These are to be valued notionally and
of agriculture with reference to environment, challenges of
considered under agricultural costing.
climate change, ever increasing pressure on scarce natural
Some of the inputs can be farmer’s own like seeds, may resources and socio-political-cultural dynamics within
be from previous crop, farm yard manure from own cattle the ecosystem while also meeting the aspirations and
etc. These are to be factored in as notional costs under expectations of the stakeholders associated with the agri
agricultural costing. value chains.
Some of the significant contributions by the farmer and ~~ The canvas of agriculture has been changing and
his/her household include supervision of the activities attaining levels of complexity as the stakeholders
throughout the crop cycle; working as labour in their have to strike balance between the farmers’ well-being
agriculture activities and such others till the produce is sold. as well as food/nutritional needs AND protection
Agriculture can be seasonal or with varied level of of environment, management of natural resources
engagement at various stages of the crop under cultivation or and effects on climate change. Some international
at various times of the season/year. Some crops are of short agencies6 initiated to propagate landscape
duration, some are of long duration and some can have life management that supposedly encompasses all these.
time of several years like Coffee, Cocoa, Coconut, Mango This needs objective, qualitative and quantitative
and Cashew etc. analysis and thus a focus for Agricultural Costing.
The produce from the agriculture also varies including ~~ The nations across the globe strived to achieve
food grains, oil seeds, spices, flowers, fruits and vegetables significant success on the set Millennium Development
etc. Some may not yield any produce like Casuarina, Popular, Goals (MDG) and embarked on achieving ambitious
Eucalyptus, Bamboo etc. but these have other applications Sustainable Development Goals (SDG). Agriculture
like being used in pulp manufacture or construction and is important and has direct influence on many of these
others. SDGs including: End Poverty (SDG1), End Hunger
Some produce may be of single harvest like Paddy or (SDG2), Gender Equality (SDG5), Good Jobs and
Wheat or Sugarcane; some may have staggered harvest like Economic Growth (SDG8), Reduced Inequalities
some fruits and vegetables; some may have periodic harvest (SDG10), Responsible Consumption (SDG12),
like Coconut; some may have seasonal harvest like Coffee, Protect the Planet (SDG13), Life Below Water
Mango, Cashew etc. The quality of produce may also vary (SDG14) and Life on Land (SDG14). Agricultural
from harvest to harvest as is mostly the case with some of Costing with its objective to contribute to sustainable
the fruits and vegetables where initial or final harvests may agriculture can be of significant use in achieving the
be lesser quality while in between harvests are of normal or SDGs.
better quality. Agricultural Costing shall contribute to ‘net value
The above are to provide certain domain specific insights creation’ at each and every node of the value chains –
while attempting to present the Objectives and Scope of whether integrated or otherwise - and thus economic value
Agricultural Costing. optimisation; possibly to defy generally accepted arithmetic
and help achieve preferred goal of integrated agri value
Agricultural Costing chains viz., making two plus two7 to result in more than
four8.
The focus of this paper is to derive the Objectives for
Agricultural Costing and state Scope on the strengths of the Agricultural Costing shall assist the policy planners opting
author’s engagement with agribusinesses and stakeholders balanced approaches towards inclusive growth by enabling
of agriculture over the years. optimised resources access and use; the biggest dilemma
often encountered by policy planners to achieve inclusive
To set the tone, it is important to recall that the Mission of
growth is whether to opt for direct income redistribution
Agriculture can be stated as “To meet the food and nutritional
needs of global population; securing the livelihoods of 6
Example: Rainforest Alliance
millions through employment and entrepreneurship; and
7
Individually achievable
8
Through integrated and coordinated working

COVER STORY
or productive employment9; in other words whether to put is to be followed. However, the costs, as can be the case with
money in the hands of the needed people or invest scarce type of industry and processes, are to be understood with
resources in productive assets and make people benefit specific reference to agriculture.
through access to productive assets. This can be better
understood with a popular saying from the livelihood Prime Costs: The direct material costs consists of costs
promotion fraternity “If you give a man a fish, he will be of all inputs like seeds, fertilisers etc. These may include
hungry tomorrow. If you teach a man to fish, he will be richer packing material if the same are for one-time or one-season
forever10.” use. The direct labour costs consist of wages and charges paid
The Objective of Agricultural Costing shall be to help towards various labour needs viz., land preparation, nursery/
in enhancing access to the precious produce by balancing sowing/transplantation, weed removal, crop protection,
the interests of both buyers and producers/sellers with due harvest and postharvest management.
regard to the pulls and pushes at the market place; through The direct overheads include any other direct expenses
frameworks that can be used in developing ‘pricing’ models. like rent on leased land, commission/paid to marketing
Example, some of fruit pulp buyers compensate processors agent, cess paid to market yard, electricity or other costs
with ‘raw material cost plus’ models as the both the buyers on irrigation and depreciation on equipment used, if any,
and processors do not have control on the market prices like pump set, power sprayer, tractor, harvester etc. Interest
of the fruits to be processed (imagine Mango or Tomato – on short term loans, insurance, other financial charges and
prices of which can vary anywhere from Rs. 10 per Kg. or warehouse rent etc. also to be categorised under direct costs
lesser to Rs. 40 per Kg. or above). Another innovative model as these are mostly for a season.
used is to source produce at a fixed price throughout the year
and this price is derived with analysis of prices prevailing at
Indirect Costs: In the case of agriculture considering that
various points of the previous years or seasons.
majority of the farmers are of small and marginal category,
The Objective of Agricultural Costing shall be to bring the indirect costs may be nil or insignificant. These may
under focus the ways in which value optimisation is feasible include salaries/wages of any long-term employees/workers
– technically, commercially and financially –such value being engaged viz., those employed on annual contract or
optimisation can be in the form of: engaged for use in multiple activities including agriculture.
~~ Improved productivity at the farm level (including Indirect expenses to include depreciation on common
factor level productivity but NOT just yield per area equipment, warehouse facility costs if used for more than
of farm land), one season and types of produce. Interest on loans borrowed
~~ Enhanced value addition (including through primary to be used on land development, purchase of equipment with
processing at field level; secondary and tertiary/higher impact spread on more than one year/season are to be treated
level processing at the level of farmers’ collectives under this head.
like Farmer Producer Organisations or Others),
~~ Market-led practices in particular postharvest Specific attention is drawn to:
management and marketing practices aimed at ~~ Treatment for subsidies or other support received
avoiding distress sale and participation in commodity from government of other agencies
exchanges and future trades, and better market
~~ Notional costs towards own seeds or fertilisers or
access opportunities through appropriate market
infrastructure. other inputs used by the farmer
The above can at best be stated as illustrative as the canvas ~~ Notional costs towards supervision or marketing of
of agriculture and agribusinesses is too broad to be able to produce etc. by the farmer
generalise; nonetheless serve as benchmarks. ~~ Notional income towards produce retained for self-
The costing methods and systems rely on technology and consumption or use.
processes for any manufacturing environment. In the case ~~ Any others that significantly constitute the total cost
of agriculture, the crop phenology11 and agri value chain or total revenue.
framework shall be the base. The agri value chain framework With the above understanding of the cost structure, the
can be derived using generally accepted value chain analysis scope for Agricultural Costing is stated as under:
model12 of Prof. Michael Porter.
A. General
SCOPE OF AGRICULTURAL COSTING
Access to adequate, quality and timely data is of paramount
The scope of Agricultural Costing relies heavily on the cost importance. The agricultural costing can help generate such
structure. The normal structure as otherwise used in costing data base with reference to many crops as specific to certain
9
The Growth Report – Strategies for Sustained Growth and Inclusive
geographies and agro-climatic conditions.
Development (2008) India is a country with lot of diversity. Different parts of
10
Anne Isabella the country are recognised for specific crops with produce
11
To mean end to end crop cycle.
12
Creating Competitive Advantage - Creating and Sustaining Superior of peculiar characteristics (Example Chilli from Guntur or
Performanceby Prof. Michael E Porter Byadgi or North East). The varieties and practices associated

COVER STORY
with same crop may be different for different parts of the small and marginal farmers and even some of the
country. The markets for inputs and output also normally others. Thus, it would be important to ascertain which
vary. crop/variety generated maximum net incomewith
Thus, the costs for the same crop are likely to be different minimum risks, during a season from each cultivable
for different parts of the country. It is sometimes surprising land of the farmer. Generally, a farmer may have land
to note that the conditions are likely to be different for the holding of small parts in the same or other areas.
same crop cultivated in different fields in the same village ~~ While the above analysis is expected to help in
or area. This is not a peculiarity experienced in India but deciding which crop/variety is to be cultivated in
generally the case with many developing countries where each of the land parts, other analysis that can be
small scale farming is predominantly in practice. undertaken at the farmer level using the historical
In the case of largescale farming, the scale impacts data on costs, yields and benefits include:
the costs significantly and the cost structure will vary. ¾¾ Crop-wise income or loss
Mechanisation significantly impacts the large-scale farms as ¾¾ Land parcel-wise/Resource-wise income or loss
investment, associated financing costs and depreciation are or contribution
generally high. This is generally the case with commercial
¾¾ Crops that generate better/higher net-income
farming in developed nations and can be the same in some
of the commercial farms in developing nations like India or ¾¾ Lands that are generate better/higher net-income
South Africa wherever mechanisation is preferred for better ¾¾ Loans that have higher costs
productivity and because of the challenges associated with ¾¾ Decision making support on: Make/Buy; Hold/
engaging labour. Sell; Hedging, Futures Trade; Commodity
Hence the data sets for each type of crop and within each trade participation etc. Sell Produce as Produce
crop for varieties, it is important to have data base on costs or Work on Value Addition; Investment;
and revenue, among others. This can be of immense help to Productivity Improvement etc.
all the stakeholders associated with agri value chains. Unlike
the case with industry or services sectors, confidentiality C. Research and Academics
challenges related to costs can be lesser, if not nil, with Researchers and academicians are generally engaged
reference to general agricultural costs, unless they related in developing new varieties, technologies, crop protection
any specific agribusiness with ‘for-return’ investments or measures, processes, practices etc. that help farmers
protected technologies or such other cases. in improving the produce characteristics, productivity,
production, shelf life, market access etc. However, while
B. Farming some of such developments are of high scientific value, it is
Majority of the Indian farmers are generally categorised important to be able to establish the cost-benefit analysis for
as small and marginal farmers (SF/MF) on the criteria of their application at the field level.
land holding for agriculture purpose. Other categories are Agriculture being the primary livelihood activity of the
medium and large farmers. Agriculture is still considered farmers, any and every change proposed to be introduced in
as traditional or family custom, generation after generation. the areas of agriculture shall be beneficial to the farmer else
Whereas there is great need to recognise and manage the livelihood and thus the socio-economic security of his/
agriculture as a for-profit economic activity; and to recognise her family can get impaired. Hence, it is essential for one to
farmers as agripreneurs. be sure of the practical implication of the ‘proposed change’
In this context, farmers are in need of details on costs on the farmers’ fields.
incurred, yields, quality/grading of produce, ease in market Agricultural costing helps in ascertaining costs and benefits
access, benefits accrued and such other data for each crop as associated with the application of such development or
cultivated in any season and every year. Availability of such change and their analysis as compared to the benchmark
data/information is of use in making decisions on land use norms/data.
and crops to be cultivated in any season with due regard to
the agro-climatic conditions, access to irrigation and other D. Policy Planning
inputs and skill/capability of the farmer with reference to
The agricultural costing with reference to policy planning
prioritised crop, among others.
brings immediate focus on Commission on Agricultural
The agricultural costing will be of help to the farmers as Costs and Prices (CACP) and its role in the decision on
observed hereunder: Minimum Support Price (MSP) for certain crops. (There has
~~ Application of “Key Factor Analysis” using the cost, been sustained debate on the advantages or otherwise of the
revenue, yield and other data to identify which crop MSP regime.) However, this can only be one among many
generates maximum contribution per unit of critical areas where the data on costs, yields and revenue/benefits
resource along with easy and remunerative market can be useful with reference to policy planning. Some such
access. In general conditions, land is the critical areas are:
resource as land available is limited in the case of ~~ To arrive at farmer household scenario with reference

COVER STORY
to crops they are engaged with as specific to certain and “Total Revenue/Benefits” is better positioned to take
geographies or agro climatic zones or irrigation into consideration impact on and contribution to eco-friendly
system etc. practices, to bring focus on “overall benefit or challenge” to
~~ To ascertain, assess and analyse the data to be able to the entire ecosystem but not limiting to only real and certain
issue advisories on crops that are suggested to be with notional costs or benefits.
better economic viability; such suggestions shall be
supplemented with market intelligence information Conclusion
on pricing expected to be prevailing at the time of To sum up there is great need to compile cost and revenue
harvest, as a forecast. data, adhering to generally accepted principles and practices
of costing, related to various crops at different levels
~~ To assess the needs for support facilities, services and
beginning with farms to higher level aggregations that can
systems for such crops that are assessed to be better
be useful in decision making, planning and monitoring/
remunerative for certain blocks or districts or regions.
control by the farmers, policy planners, various other
~~ To be able to design, develop and introduce cost- stakeholders associated with agri value chains including
effective or convenient or efficient modes of services researchers and academicians. While these actors are
support like ICT based crop protection advisory using expected to benefit out of access to and analysis of such
sensors and AI; mobile SMS based market prices system, even the environment can be protected and saved for
dissemination etc. the future generations as envisaged through the Sustainable
~~ To use such data while considering investments in Development Goals (SDGs).
support infrastructure or facilities. Public investments
are generally considered based on social benefits but References
wherever relevant the cost and benefits data can help 1. Cost Accountants Hand Book by Theodore Lang.
in assessing the economic aspects as well.
2. A Concept of Agribusiness, Harvard University
~~ Farmeconomics usually forms the basis while taking
3. The Growth Report – Strategies for Sustained
certain decisions, however, if such farm-economics
Growth and Inclusive Development (2008)
are derived with analysis of data on cost, yield and
benefits as ascertained through agricultural costing, it 4. Creating Competitive Advantage - Creating and
can be more rational. Sustaining Superior Performance by Prof. Michael
E Porter
~~ There can be many other ways in which historical
data on costs, yields and benefits and their analysis 5. Cost & Management Accounting and Financial
can be of use for the policy planning. Management, Paper 10, Intermediate, ICAI, Study
Notes
E. Environment and Economy 6. Cost Accounting, paper 8, Intermediate ICAI Study
Agriculture is significantly influenced by prevailing agro Notes
climatic conditions. Agricultural practices in turn impact 7. Glossary – Full Cost Accounting, FAO (2016)
environment and climate. The use of agro-chemicals, 8. Case Studies in Agribusiness, an interview with Ray
accessing ground water for agriculture and the manner in Goldberg; www.researchgate.net.
which some of the agricultural waste is disposed off are
some examples wherein negative impact on environment
and climate change are often visible. The burning of farm
waste in some parts of Northern India and setting on fire
of aged Oil Palm plantations in Indonesia and Malaysia are [email protected]
some examples impacting environment.
However, the waste can be productively used. Paddy
straw can be used to make boards; banana tree trunk can be
used to produce fibre and even security printing paper.
In the light of global concerns on changing climate and
various actions and inactions impacting environment, it is
important to explore ways in which desired measures can be
propagated and introduced to save the planet for the future
generations. The Planet, People and Profit (PPP) approach
ensures business practices comply with environment friendly
requirements. Landscape Management and Tree-based
farming systems etc. are some measures being promoted
to protect the overall ecosystem and balancing diversified
needs and challenges.
The agricultural costing using concepts like “Total Cost”

COVER STORY
THE OUTLINE OF THE

CURRENT SCENARIO AND
GOVERNMENT POLICY
IN AGRICULTURE
MARKETING
Abstract
Agriculture is one the important aspect

of our life. Our daily necessities of food
are dependent on agriculture. Hence, our
survival depends on the agriculture. Yet,
we are merely giving importance to the
farmer’s welfare who are taking all the pain Sayani Sikdar
Lecturer (Research Scholar)
for our benefit. Similarly, our government Prafulla Chandra College
are unable to meet the requirement of the Kolkata
farmers despite of various reforms. In
this study the agricultural scenario has
been depicted as well as it also reveals
some of the hindrances faced by the
agriculture sector. In order to overcome
such hindrances what are the reforms
undertaken by the government are also
highlighted.
Homera Ashraf
Lecturer (Research Scholar)
A
INTRODUCTION Umeschandra College
griculture still continues to be the cornerstone of Kolkata
life on which the majority of Indian population
depends. Now coming to the term ‘Agricultural
Marketing’, it defines a total system that other countries. Since varieties of products are listed under
starts with the commitment to produce a marketable farm the term agricultural marketing, hence uniform distribution
commodity, involving all the essential infrastructures of the channels often make the system subside. Hence rebalanced
marketing system, mainly including before and after harvest supply chain needs to be implemented in order to eradicate
operations that also includes several functional, technical, concentration so that proper dispersion of items could be
and economic deliberations and actionslike, assembling, possible. The Government of India under the ministry of
grading, storage, transportation and distribution (National agriculture has also set up specific commodity Boards and
Commission on Agriculture). The farm productions apart export promotion council for monitoring and boosting the
from including cultivated products also included dairy, production,consumption,marketing and export of various
poultry and vegetable farming, fruit, milk, eggs, vegetables, agricultural commodities.
honey. India’s transport facilities, communication system,
though quite upgraded with storage and warehouse facilities LITERATURE REVIEW
still Indian agriculture takes a backseat while comparing with Agricultural policies in this global pandemic has reached

COVER STORY
out to different heights with concerned efforts being made role in the farmers education about the disaster management
from the all authorized bodies just to help and manage the practices over the periods. A glance of various extension
overall growth and uninterrupted supply of the agricultural strategies for management of disasters in agriculture as
crops to different areas and regions. The ongoing pandemic reported by researchers suggested to promote participatory
has literally affected this sector badly, and also simultaneously and community-based climate smart approach that included
bought new rules for this sector too. Some literatures revealed several extension strategies, adoption of climate tough
the following findings: practices in crop and livestock farming that mainly guided the
Uma Lele, Sambuddha Goswami, (2020): In the study animals from heat stress.
titled,’ Agricultural policy reforms: Roles of markets and
states in China and India’, the researchers have studied the OBJECTIVE
market reforms along with market growth performances 1. To entail the overall agricultural scenario keeping
specially of India and China. The study found a sporadic Indian focus mainly on the global pandemic.
reform compared to that of the planned structural reforms of 2. To enumerate the strategies and policies applied by the
China. The gradual changes adopted by India’s central and govt regarding the agricultural marketing.
state governments have been inadequate to attain speedy
agricultural productivity growth, taking into consideration the DATA ANALYSIS AND FINDINGS
needs of the people, private sector of the country, and also the
foreign institutional as well as the foreign investors investing This study is based on secondary data available in National
in the country. In comparison, the researchers placed the Sample Survey Organisation, research article and various
policies and reforms of China far greater than that of Indian websites.
reforms studied from various angles.
AGRICULTURAL SCENARIO KEEPING IN FOCUS
Punit Kumar Agarwal, Pushpa Yadav, (2019): This
MAINLY ON THE GLOBAL PANDEMIC
book chapter titled. ’Marketing Reforms in Agricultural
Marketing System in India’, vividly describes the reforms in Before COVID, the agricultural sector was facing any kind
agricultural marketing system in India, that further gives the of challenges due to flood, rainfall and drought which was the
representations of the different traditional agricultural markets result of natural calamity. But now in this COVID situation
operating in the heart of the country India. Needs for market there are two more additional challenges has come into the
reforms together with detailed classification of the regulated picture they are the non-availability of labour and Unable to
market the study undergoes a detailed analysis of the market reach out the market. Though some part of agriculture who
form measures that truly help the agricultural segment in are depended on the technology were less effected due to non-
different ways. Proper suggestions for improving Indian availability of labour like paddy and wheat, yet they were
Agricultural Marketing System have been given at the end for facing difficulty in moving their crops because of conveyance
better marketing of agricultural goods and services. facility in this pandemic situation.
Ismaelline Eba Nguema, (2020): This article titled,’ A Agricultural producers were facing huge loss or a meagre
necessary reform of agriculture market access rules’, the return in their business due to this pandemic. In numerous
researcher after studying the different agricultural standards districts the interstate trade or access to urban market was
for different products claimed for a rebalanced structure that because of the individual farmers rather than the support of
could probably meet the agricultural needs of all the segments. the state. Though government has set a target of agricultural
Construction of fair agricultural standards has built up new export policy to increase agricultural export to over US$ 60
negotiation rules that has ultimately has started to be beneficial billion by 2022 and to double farmers’ income by 2022, yet it
to all the developing country members. will be difficult to say how far will this target be fulfilled as the
government was mostly failure in this sector.
Sunil K. Mohanty, Sibanjan Mishra, (2018): This journal
titled,’ Regulatory Reform and Market Efficiency: The Case of
Table 1: NUMBER OF AGRICULTURAL PRODUCE
Indian Agricultural Commodity Futures Markets’, the authors
MARKETS IN INDIA
have researched on the Indian agricultural commodity futures
(castor seed, cotton oil cake, rape mustard seed, soybean, Number of Regulated Markets as per
refined soya oil, crude palm oil, jeera, chana, and turmeric), Period Regulated cent of Total Wholesale
taking into consideration the efficiency measures. The findings Markets Assembling Markets
showed that the commodities future market in India is overall End of 1945 146* 2.00
inefficient, largely due to market imperfections, the lack of
competitive market conditions, or both. Large and similar End of 1950 286* 3.92
trades, seasonality in agricultural commodities, commodities March, 1956 470* 6.44
prices likely to be under severe pressure due to inaccuracy in March, 1961 715* 9.80
weather forecast, risk factors, lack of adequate liquidity, all
magnified the imperfections of the Indian commodity markets. March, 1966 1,012* 13.88
K. Ponnusamy, Priya Sharma, (2020): The study with the March, 1974 1,777* 24.37
title, ‘Extension And Policy Reforms In The Midst Of Disaster March, 1976 3,528 48.38
In Agriculture’, the researchers tried to present the extension March, 1980 4,446 60.96
of functionaries in times of disaster, that plays an important
March, 1985 5,695 78.09

COVER STORY
March, 1990 6,217 85.25 From the above table it is observed that the number of
Regulated Market and the percentage of Regulated Market to
March, 1995 6,836 93.73 the total Wholesale Assembling Market were on the increasing
March, 2001 7,161 98.19 trend from the period 1945 to 2008. Hence, before COVID the
March, 2006 7,566 Almost 100 regulated market was increasing but after the advent of this
pandemic this regulated market were difficult to accessible
March, 2007 7,465 Almost 100 due to problem faced in conveyance facilities. The detail
March, 2008 7,566 Almost 100 information of Regulated market according to the state all
over India in given below:
Note: * Represents only Principal Markets.
Source: National Sample Survey Organisation, 2010
Figure 1:
Source: National Sample Survey Organisation, 2010.
STRATEGIES AND POLICIES APPLIED BY THE GOVT REGARDING THE AGRICULTURAL MARKETING
Agriculture in India being the most precious tool of economic growth as it mainly creates dependency of other sectors, provides
reforms in the structure of agricultural growth, current position and future. The reforms of regulated markets had been enumerated
in this study that also lists suggestions for agricultural marketing for a vibrant transformation as a whole.
Agriculture being a climate dependent activity actually largely depends on the climates of the place. The natural hazards once
come in the, whole agricultural system takes a backseat, calling for the reforms to be analysed, rebalanced, and reformulated from
time to time. With total production and productivity being constantly increased it is very much essential to provide the farming

COVER STORY
community with much better marketing facilities as well as Further in covid crisis the Government announced
infrastructures so that the correct prices are being fetched by and granted 1.63 lakh crore rupees outlay, and also
the farmers for their produce. making some relaxations of the stringent Essential
~~ Prior to independence, the major concern of the Commodities Act (ESA) to remove cereals, edible oil,
Government was to keep the prices of Argo food and oil seeds, pulses, onions and potato from its scope.
raw materials at a control, In the coming days the Central government are planning
~~ while after independence the main focus was to to give way outs of how the farmers could get an idea
guard the minor interests of the farmers and also to of harvest time prices that is a serious technological
augment the varieties and qualities of the agricultural hindrance faced by the small farmers.
commodities.
CONCLUSION AND SUGGESSTION
Below are the lists of hindrances in the domain of marketing
the agricultural commodities that are really posing a threat to In this pandemic situation, the government must focus on
the overall system of agriculture- how to solve the problem of non-availability of labour and
to increase the transport facility for agriculture sector. This
¾¾ Fragmented market structure
obstacle has grown up so much that the farmers are facing
¾¾ Inadequate number of markets huge difficulty in earning income for their daily necessities.
¾¾ Improper market infrastructure There must be proper reforms for the welfare of the farmers.
¾¾ High transaction cost and low-price realization In spite of the various hindrances in the Agricultural sector,
¾¾ Excessive wastages government had been trying to improve the situation by
implementing various reforms. The implementation of these
¾¾ Entry barriers with restrictions in licensing
reforms was not so successful to cater with all the obstacles
¾¾ Intermediate commissions and costs resulting in less in the agricultural sector. There must be proper management
remuneration to the farmers system, so that such reforms become fruitful to the agricultural
¾¾ Unequal and irregular information related to markets sector.
¾¾ Stringent and stern credit policies not suitable to the
farmers REFERENCES
1. Sunil K. Mohanty, Sibanjan Mishra. (2019), ‘Regulatory
With all these barriers in view some important reforms Reform and Market Efficiency: The Case of Indian
initiated by the Government are as follows Agricultural Commodity Futures Markets’, DOI: https://doi.
org/10.1016/j.ribaf.2019.101145, pg: 1-30.
The three ordinances have been recently introduced by
2. AnjaniSinha&Pradeep Kumar Mishra. (2008), ‘Reforms in
the Central Government: The Essential Commodities Agricultural Marketing: Options available in the Constitution
(Amendment) Ordinance 2020, The Farmers of India’, Reforms in Agriculture Marketing, pp:1-11.
(Empowerment and Protection) Agreement on Price 3. K.Ponnusamy and Priya Sharma.(2020), ‘Extension And
Assurance and Farm Services Ordinance, 2020, The Policy Reforms In The Midst Of Disaster In Agriculture’,
International Journal of Development Extension, Vol.11 :
Farming Produce Trade and Commerce (Promotion Issue(1) January-June, 2020.
and Facilitation) Ordinance, 2020. 4. IsmaellineEbaNguema. (2020), ‘A necessary reform of
Amended Essential Commodities Act (ECA), 1955, agriculture market access rules’, Journal of International
Trade Law and Policy Vol. 19 No. 2, 2020 pp. 101-120
allowing more sale of the farmers to anyone creating © Emerald Publishing Limited 1477-0024 DOI 10.1108/
value chains and better returns to the farmers. JITLP-06-2019-0030.
AtmaNirbhar Bharat Abhiyantypically focusses on 5. Punit Kumar Agarwal, PushpaYadav. (2019), ‘Marketing
Reforms in Agricultural Marketing System in India’,
farm sector reforms that recently announced 1 lakh Marketing of Agricultural Commodities in India, pp.24-37,
rupees for financing agricultural infrastructural ISBN 978-93-88317-09-2.
projects also sanctioned 500 crores for Operation 6. S. Angles and K. Mani. (2019), ‘Dynamic Reforms in
Greens that comprised mainly all fruits and Agricultural Marketing is the Key for Development of
Agricultural Sector’, https://www.researchgate.net/
vegetables. publication/339933535.
Under the new reforms Government regulates 7. Uma Lele, SambuddhaGoswami. (2020), ‘ Agricultural policy
production, supply, distribution to help out both the reforms: Roles of markets and states in China and India’,
Elsevier, Global Food Security 26 (2020) 100371, https://doi.
farmers as well as the consumers. org/10.1016/j.gfs.2020.100371.
Central Government also took initiative to create 10000 8. THE FARMERS’ PRODUCE TRADE AND COMMERCE
(PROMOTION AND FACILITATION) BILL, 2020, Bill No.
FPOs scheme with NABARD as implementation 113-C of 2020.
agency. 9. https://www.drishtiias.com/daily-updates/daily-news-
After COVID 19, market-based mechanisms focused editorials/agricultural-marketing-reforms.
on introducing farm ordinances, newly added features 10. https://iasbaba.com/2020/08/making-agricultural-market-
reforms-successful/
to e-NAM that was introduced in 2016 for efficient
11. https://blog.forumias.com/7-pm-editorial-making-agricultural-
market-based price discovery by the farmers. market-reforms-successful27th-august-2020/
Access is being tried to be improved to formal credits
and insurance, with also proper liberalization of the
markets. [email protected]
[email protected]

COVER STORY
DOUBLING OF FARMERS
INCOME -
BACKDROP, EFFORTS,
ACTUAL PROGRESS
& FUTURE COURSE
CORRECTION
Abstract
1994 to 2015 reflect a dismal rate

of growth of farmer’s income pushing
government’s resolve to double the 2015-
16 income in just 7 years by 2022-23. This
is highly challenging and entailed drastic
CMA Padmanabhan Satyes Kumar
measures and reforms. Though a mid-term Ex. Dy General Manager
review of actual growth up to 2018-19 BHEL - Haridwar
indicate that much of the set target is yet
to be covered, some course correction can
still make it possible so that more than 50%
of India’s population is greatly benefitted
L
even if we achieve the doubling of income
ower per capita GDP of India’s agrarian class
by a couple of years after the original FY compared to other citizens induced our PM to
22-23 target. envision for Doubling of Farmer Income (DFI)
in 2016 by FY 22-23 from FY15-16 baseline.

COVER STORY
A) Backdrop of the DFI Concept- it would be relevant to understand the DFI target with ref to:
Table 1: Historical data of the Primary sector Between FY94-95 to 15-16 (Ref #1):
Farm Real
Total Income Labor Cost Rural Cost Net Income Real Income Income per
FY families Income/
(Rs Cr) (Cr) Index (Rs Cr) (Rs Cr) family
(Crore) family
1994-95 223709 45755 59 177954 301617 14.39 12367 20960
1999-00 426582 90951 90 335631 372923 13.88 24181 26868
2004-05 527289 93130 100 434159 434159 16.61 26138 26138
2011-12 1409932 202804 183 1207128 659633 14.62 82567 45119
2012-13 1558480 245750 220 1312730 596695 14.36 91416 41553
2013-14 1753691 276532 245 1477159 602922 14.10 104763 42760
2014-15 1849931 291708 261 1558223 597020 13.85 112507 43106
2015-16 1940636 306010 273 1634626 598764 13.60 120193 44027
Crucial Findings of the Report (Ref#1): 3. From1983-2013-cultivator income was just one
third of the non- agricultural labor earnings
1. Between FY 94-95 to 14-15-the real income doubled inducing large migration from agriculture.
in 20 years (Rs 43106 vs. 20960). 4. As per 2011 census -22% rural families below
2. From 1965-2015-in 50 yrs -output grew by 3.7 times poverty line (BPL) and even worse for UP, Bihar,
while the population grew by 2.5 times. Jharkhand, Orissa and MP.
Table 2- CAGR and Projected DFI period based on FY 02-03 vs.12-13 data ( Ref#2):
Income/ Family CAGR% CAGR% DFI (Years)
Land size (Hectares)
2002-03 2012-13 Nominal Real Nominal Real
1 Landless (less than .01) 16560 54732 12.70% 6.19% 5.8 11.54
2 Lower Marginal ( .01-.40) 19596 49824 9.78% 3.27% 7.43 21.54
3 Upper Marginal ( 0.41-1.00) 21708 62964 11.24% 4.73% 6.51 15.01
4 Small ( 1.01-2.00) 29916 88176 11.42% 4.91% 6.41 14.47
5 SemiMedium (2.01-4.00) 43068 128760 11.57% 5.06% 6.33 14.03
6 Medium ( 4.01-10.00) 68172 235644 13.20% 6.69% 5.59 10.7
7 Large( above 10 Hectares) 116004 496656 15.65% 9.14% 4.77 7.92
All Size Average 25380 77112 11.75% 5.24% 6.24 13.56
Note: As per 2015-16 census, nearly 68% of the total 14.64 crore holdings were up to 1 hectare.
Table 3- State-wise data for top 10 states on comparative DFI (Ref#2)

Income/ Family CAGR% CAGR% Doubling Time
State 2002-03 2012-13 nominal Real Nominal Real
Andhra Pradesh 19608 73392 14.11% 7.19% 5.25 9.99
Bihar 21720 42684 6.99% -0.33% 10.26 ****
Karnataka 31392 105984 12.94% 5.71% 5.70 12.48
MP 17160 74508 15.82% 9.81% 4.72 7.4
Maharashtra 29556 88620 11.61% 5.66% 6.31 12.58
Punjab 59520 216708 13.79% 6.66% 5.36 10.75
Rajasthan 17976 88188 17.24% 9.39% 4.36 7.72
Tamil Nadu 24864 83760 12.91% 6.68% 5.71 10.72
UP 19596 58944 11.64% 4.72% 6.30 15.02
West Bengal 24948 47760 6.71% -0.22% 10.67 ****

COVER STORY
Main inferences from Table 2 & 3 are: c. Exploit complementarities e.g. cultivation with
growing tree species and horticulture crops on
1. For large farmers the real income would double bunds to enable green leaf manure and fodder for
within 8 years, while it will take 21 years for livestock thus saving on fertilizer cost.
marginal farmers and 12 years for landless. d. Bridging the gap in the recommended seed rate
2. While India would require 13.5 years for DFI,MP & for soya-bean and the actual seed rate observed
Rajasthan would get it within 8 years but Bihar & in the field will save the extra cost of seeds as
West Bengal would technically never achieve DFI experimented in MP.
due to negative rate.
4) FPO success stories of small & marginal farmers
B) Multipronged Efforts under DFI Plan (Ref#5)
1) Yield improvement- according to a study (ref #3) 1. Krishak Bharti Farmer Producer Co.Bakhtawarpur,
significant yield gaps noted as under: Delhi-A FPO with 1,100 farmers initially with just
a. Cereals- 28% in Wheat and up to 212% in Jowar. 500 kgs of vegetables were trained for sorting,
grading and for supply of consistent quality produce
b. Pulses- 115% in Bengal gram and up to 225% in
has now been linked up to sell directly to modern
Green gram.
retailers approx 4,000 kg/day with 20% more
c. Oilseeds-24% in Mustard and up to 181% in margins on price apart from savings on the earlier
Sunflower. logistic costs.
d. Vegetables-57% in Potato and up to 173% in 2. Kedarnath Kisan Agro Producer Co. Ltd.
Onion. (KKAPCL)-A FPO of District Tonk, Rajasthan with
e. Fiber crops- 21% in Jute and up to 495% in 1000 farmers opened an Input Supply Shop initially
Cotton. for fertilizers and pesticides. The crops are procured
Further it was noted that even a 50% improvement in from the farmers directly during harvest season and
yield can increase income by Rs 10,000 per hectare sold to appropriate vendors at good price. During
through soil nutrition, crop rotation and weed control as 2016–17, the FPO earned Rs. 17,172,450/- for
seen in Karnataka. Chickpea and Rs. 69,98,887/-for Green gram thus
increasing income and rendering various inputs and
2)Land Utilization and Rational Irrigation. information support.
a. MP published the following data (Ref#4) under the 5) Applied Research Inputs from ICAR (Ref#6)
very first year of DFI initiatives:
a. Land developmental activities carried out in
Area Under single crop- 36 lakh hectares to 28
abandoned cultivated field increased the area under
lakh hectares
cultivation, ensured safe disposal of the runoff
Area Under double crop-97 lakh hectares to 106 water and retention of maximum possible runoff
lakh hectares for ground water recharge and surface storage
Area Under Triple crop-2.5 lah hectares to 3 lakh increasing the crop productivity on sustainable
hectares basis in tribal belt of Jagdalpur district of Chhatisgarh.
Total area expanded by only 1.50 lakh hectares but b. Under Mera Gaon Mera Gaurav scheme of ICAR
effective increase was 11.5 lakh hectares due to enhancement implemented in 3 villages of Jorhat district (Assam)
under double and triple crops. yield gain ranging from 31% ( potato) to 220%(
Mustard) was achieved through simple methods
b. Drip irrigation having potential to increase including soil management and transfer of specific
irrigation by 10 times as noted in Gujarat. agro technology.
c. Andhra’s experience of people lead shared c. Select Integrated Farming System Models--
irrigation under AP Farmers Ground Water System Like Rice-fish-poultry model, rice-fish-vegetable
(APFAMGS) is another good benchmark for better model, makhana-fish-singhara (water chestnut)
yield at minimum water. covering crop-livestock-aquaculture were planned
and demonstrated. These resulted in increased
3) Reduction of cost of cultivation percolation; reduced evaporation due to
subsurface storage; low risk of breaching/ damage
a. Smart nutrient management to optimize the cost & in heavy rain due to controlled runoff movement;
yield mix and to preserve soil fertility. low-cost as compared to check dam through
b. Curtailing overdose of fertilizers and pesticide technology easily understood by farmers.
through organic farming.

COVER STORY
6) Diversification and Improved Methods of Integrated Farming- MP Case study ( Ref #4)
1)Name-Jitendra Mahajan, Village- Nimandad,Block- Khaknar, Dist-Burhanpur, Mobile No: 9893227318
Cost/acre Net Income Cost Net Income
Old mode Rev/Acre New Mode Rev
(Rs) (Rs) (Rs) (Rs)
Sreemanti 20T@6000 Banana G9 Tissue,INM 25T@6000
50000 70000 70000 80000
Banana 120000 IPM &drip irrigation 150000
Maize [email protected] Cotton BT , INM, [email protected]
15000 39600 15000 47400
Hybrid 54600 IPM &drip irrigation 62400
Interspread plant 20000@5
35000 65000
Watermelon 100000
Bee cultivation 300l@300
50000 40000
Honey 90000
109600 232400
Conclusion: Income raised by 112% under the new mode.
2)Gulab Singh Lodhi, Village-Nanhegaon, Block-Gotegaon,Dist- Narsinghpur, Mobile 9303950547

Cost/acre Net Income
Old mode Rev/Acre New Mode Cost (Rs) Rev Net Income Rs
(Rs) (Rs)
Soyabean [email protected] Soyabean RVS [email protected]
6000 7625 7000 12075
JS9752 13625 2001-4 19075
Wheat [email protected] Masur JLS-3 in [email protected]
7000 17375 5000 36800
GW366 24375 paired rows 41800
Mustard at 20 feet 200kg@40
2000 6000
distance 8000
Moong PDM-139 [email protected]
6000 25350
in summer 31350
25000 80225
Conclusion: Increase in income by 221% under the new mode and also the new method is more conducive for
sustainable agriculture as it is conducive to the risk of climate change.
7) Risk Mitigation –MP has a specific system for government compensation(Ref#4):
Compensation for more than

Sl No. Category and Land Holding Compensation for crop loss of 25% to 33%
33% loss
1.Rain-fed crop-@Rs5000 per hectare. 1. Rs8000/hectare

Marginal and Small Farmers 2.Irrigated crop- @9000 per hectare. 2. Rs 15,000/hectare
1 with landholding up to 2
hectares 3.Perennial crop-@15,000 per hectare. 3. Rs 20,000/hectare
4.Vegetables etc. @18,000 per hectare. 4. Rs 26,000/hectare
1.Rain-fed crop-@Rs4500 per hectare. 1. Rs6800/hectare

For other farmers holding 2.Irrigated crop- @6500 per hectare. 2. Rs 13,500/hectare
2
above 2 hectares 3.Perennial crop-@12,000 per hectare. 3. Rs 18,000/hectare
4.Vegetables etc. @14,000 per hectare. 4. Rs 18,000/hectare
Also, diversification from farm services into Non Farm Services (NFS) in Agriculture (artisans, equipment repairer,
tool manufacturing, food processing etc.) and Non-Agriculture (Manufacturing, Mudra yojana, wage income etc.) can also
mitigate the risk in agriculture.

COVER STORY
C) Actual Progress Made in FY 2016-17 to 2018-19- (Ref#7)
Table 4-Real Income (in Rs Crore) growth in Agriculture 2018-19 vs. 2015-16
2015-16 2016-17 2017-18 2018-19 3 YR Inc
UP 194791 206092 219496 223824 15%
W. BENGAL 127667 132376 139248 140444 10%
TAMIL NADU 100916 99287 112079 123560 22%
RAJASTHAN 136858 148778 151203 154953 13%
MAHARASHTRA 144282 178530 184026 184026 28%
ANDHRA 121518 139395 163447 181074 49%
BIHAR 60735 67415 71963 72393 19%
PUNJAB 79763 84749 88693 89111 12%
KARNATAKA 72317 75386 83965 83064 15%
MADYA PRADESH 119758 152387 156031 164850 38%
TOP 10 TOTAL 1158605 1284395 1370151 1417299 12%
72% 74% 75% 76%
ALL INDIA 1616146 1726004 1828329 1872339 16%
Conclusion:
1. While there is substantial progress for states like Andhra, MP, Maharastra, and Tamil Nadu towards DFI the
performance of other major states is still below par.
2. Overall progress achieved for 3 years is barely 16% and unless there is a long impact of the measures in the coming
years the target if DFI may have to be pushed beyond 22-23.
3. Share of the largest 10 state has increased from 72% in 2015-16 to 76% in 2018-19 implying that the growth of other
states has been slower than the major 10 states.
Analysis of average nominal income between 12-13 and 18-19 also shows similar conclusions as indicate in the graph
below (Ref#8):
Required Course Correction for Expediting DFI
1. Political impasse on reforms reflects the fact that for speedy implementation it has to evolve through a wide spread

COVER STORY
political consensus through a mechanism like GST References
council. 1. Ref#1-Ramesh Chand, Member (Agriculture) NITI
2. Farmers have carried the stigma of being free users of Ayog published in March 2017.
electricity which can be altered if government starts a 2. Ref#2- Situation Assessment Survey ( SAS)
scheme of replacement of all electrical pumps with conducted by NSSO in 2002-03 and 2012-13
the solar version. published in 2005 and 2014 respectively as per
3. Wealthy farmers should be brought under voluntary NABARD’s 2016 in “12 July 2016 Sat kjss NM.pdf”
tax compliance to augment the government tax 3. Ref3- A study on “Economic Analysis of Yield Gaps
revenue to augment specific targeted schemes for in Principal Crops in various Regions of India”
marginal farmers. conducted by Centre for Developmental Research,
4. Bio waste fertilizer plants in residential townships and New Delhi.
expansion of weekly markets inside these colonies 4. Ref4- “Kishan Book.pdf” released by MP
directly by the marginal farmers will enhance their government in October 2017
financial position.
5. Ref5-FPO success stories
5. Selective districts can be mapped to specific
(a) Success stories_Krishak Bharati.pdf
agricultural universities by ICAR to improve
its yields and sustainable agriculture like Eco- (b) Kedarnath Kisan Agro Promoter Company
technology, a environment friendly initiative of Tata Limited (KKAPCL).pdf
evolve sustainable growth along with grass root 6. Ref6-ICAR articlespublished in the Journal Indian
institutionalization. Farming 68(01)- January 2018:
6. In the long term the skill development factor in the (a) “Bringing Degraded Land to Agriculture Use”
farming class needs to be recognized for professional by D S Thakur & others page 83-87
farming as well retention of motivated farmers for (b) “Agriculture Land Use Planning” by Prasenjit
radical progress of the sector. Ray & others page 88-90;
(c) “Selected Integrated Farming Models” by A P
Conclusion
Srivastava, page 13-16
DFI is not only important to raise the overall financial
7. Ref7- Union Ministry publications Pocket Book of
status of the agrarian class but also to singularly raise the
Agricultural Statistics 2019 dated 16/3/20
per capita income of more than 50% Indians. Though
the results up to FY18-19 reflect not a significant progress 8. Ref8- internet search Hindustan Times analysis of
but even if DFI is attained in 10 years compared to the NSSO data 2018-19
previous doubling in 20 years it would be worth all the
efforts. For this the most crucial factor will be all-round
implementation of the reforms across India and uplifting
the condition of marginal farmers. [email protected]
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COVER STORY
AGRICULTURE MARKETING
ISSUES, CHALLENGES
AND STRATEGIES TO
IMPROVE AGRICULTURE
PERFORMANCE
Dr. Ravindra B. Gawali

Associate Professor
Amrutvahini Institute of Management and Business Administration
Sangamner
Abstract
Offering remunerative prices and increasing farmer’s income are the major area of concerns
to make agriculture farming economically viable and sustainable. Considering the critical and
crucial role of agriculture in fulfilling the food and health needs of consumers by ensuring food
security on one side and fulfilling the expectations of the agriculture producers and industry on
the other side in the rapidly changing marketing environment are big challenges. There is need
to rethink, reformulate and rework on the role and strategies of agriculture marketing in the
changed marketing scenario considering agriculture dependent population and its contribution
in GDP. This paper takes the review of agriculture marketing and major challenges and
discussed strategies to overcome those challenges on the basis of secondary resources.
N
1.1 Introduction was dependent upon agriculture and The Government initiated the
ational Commission nearly half of the national income policy measures like public storage,
on Agriculture was contributed through agriculture minimum support price, input subsidy,
constituted in the year sector. The government played major trade protection, regulation of markets,
1970.Food sufficiency role by taking appropriate policy procurement and distribution of food
and food insecurity were the major measures and timely interventions grains etc to regulate the production
issues in front of government after in the marketing system to deal with and flow of food across the country.
independence of our country. This problems of food insecurity and to It was common practice for the
was the period where agriculture boost up the agriculture production government to regulate, monitor and
played more dominant role in Indian and to ensure the adequate supply of control the supply of food items to
economy as around 70% of population food. prevent monopolistic marketing and

COVER STORY
other unfair practices with objectives in the country. and information that helps to direct
to prevent food deficit. However, these Agricultural marketing in India the supply of agricultural produce to
controls were done away with, once witnessed period of subsistence consumers in sufficient quantity, at the
the supply side was developed, and farming to a surplus food economy. time and place, as needed by them.
the market was freed to function in an All the pre and post farming activities The failure in marketing functions
open and a competitive environment. of farmers needs to be demand linked leads to two scenarios which can be
Indian agriculture observed a and to be based on relevant market depicted as follows:
drastic shift from subsistence farming information to stay with market a) Growth in production has little
to surplus output after 1970.It’s dynamics as per the scope and role value when it is not based on relevant
completely changed the agriculture of agriculture marketing in consumer information of demand. Marketing
marketing system which suits to value creation and value delivery systems failure in forecasting right
relevant marketing conditions. process. demand has little value in creating
Increasing farmers’ income to make Agricultural marketing as a term is value for society in general and
agriculture framing economically used to refer to different facets, as an farmers in particular;
viable and sustainable became more academic study, as a function of the b) Failure of surplus agriculture
important. Giving remunerative prices supply chain, as well the marketing produce to enter into appropriate
and managing demand supply in regulations and associated policy. market fails to bring in additional
the context of seasonal productions, Providing market intelligence is one revenues to the farmers act as a
uncertain monsoon, demand volatility, of the core functions of agriculture disincentive for future production.
lack of marketing infrastructure and marketing which remained neglected
poor marketing intelligence are the and overlooked. This hampers farmers 1.4 Objectives of Efficient
crucial challenges in the changed marketing decision making on the Agriculture Marketing
marketing environment. sound, relevant and realistic market The agricultural Marketing is
Considering past, present and future information. discussed in Part XII of its fifteen part
of agriculture marketing in the changed The American Marketing report of the National Commission of
market scenario and marketing Association defines marketing as the Agriculture (1976).The commission
environment, there is need of performance of business activities that sighted that the objectives of efficient
agriculture marketing systems which directs the flow of goods and services marketing system are :
adapt to this change and effectively from producers to users. Marketing a. To maximise returns to the
manage demand and supply of is also defined by Philip Kotler as farmers as a primary producer
agriculture to fulfil the expectations of a social and managerial process by
b. To minimise the price spread
all the stakeholders in agri value chain. which individuals and groups obtain
between producer and ultimate
Competitiveness, cost effectiveness, what they want and need through
consumer
productivity, viability and profitability creating, offering, and exchanging
of agriculture farming is major area of products of value with others. The c. To create a facility and system
concerns to economy considering its heavy emphasis on marketing is given to sale all the agriculture
employment generating potential and on needs, wants and demand which produce the farmer is willing to
contribution in national GDP. actually direct the flow of goods from sell
Besides other socio economical producers to consumers. This direction d. Making farm produce available
strategies and tools, agriculture comes through carefully listening to consumers at reasonable
marketing is considered to be a to voice of customers and knowing price and of considerable
potential tools to solve the major ills their expectations and requirements quality
of agriculture problems in managing clearly. Customer requirements, e. Doubling the farmers income
demand and discovering right price for standard, specifications and demand by 2022-23
the agriculture produce and making metrics are set on the basis of market
agriculture more remunerative and information to execute meaningful 1.5 Outcomes from Agriculture
source of generating income. exchange. The term agricultural Marketing
marketing comprises all the activities
Agricultural Market networks
1.2 Need and Importance of involved in the supply of farm inputs
were originated at a time of deficit
Agriculture Marketing and output such as buying, selling,
production and marketing infrastrture
market research, storing, risk taking,
Demand-driven production of was accordingly designed and
insurance, transportation, financing of
agricultural produce, rather than developed to encourage the direct
the agriculture produce.
production-propelled marketing, is participation of farmers. The new
the need of the day now. India is one opportunities which aroused owing
1.3 Marketing Intelligence and
of the largest markets for agricultural to change in consumer preferences
Information
produce and markets need to function and crop diversification in terms of
as a unified platform to make all The major marketing functions volume and value moved away market
consumers accessible to all the farmers which refer to providing intelligence from the original set of targeted crops.

COVER STORY
Marketing requirements and supply to enter into exchange process. been the priority of the Government to
chain mechanism differs as consumer iii. Market growth: India’s ensure production, supply and trade of
demand shows a marked preference agriculture shifted from a state agriculture produce be economically
and growth for the agricultural produce of deficit towards a status of beneficial, sustainable and equitable to
like fruits, meats, poultry, vegetables surpluses. Improved seeds, all the stakeholders in agri food supply
etc. Future market development adoption of technologies, better chain.
intervention will need to cater to the farming practices, government The role of the government is
full basket of agricultural produce. incentives improved marketing crucial in providing market based
The results of a good marketing conditions. The liberalisation, intelligent information services to
system are several, but some desired privatisation and globalisation farmers for demand forecasting
common outcomes are: changed market realities which rather than situational based market
i. Monetising the Produce: created different opportunities prices based information. Creating
Marketing facilitate transaction along with threats. It also conducive agriculture marketing
and exchange process. Demand builds competitive pressure to environment to develop and expand
–supply situation creates manage demand and supply the market footprints of the farmers
value by deciding price and according to the global quality locally and globally is the major role
volume of trade in agriculture standards. of government which they can play
produce. The monetisation of through adequate policy measures and
the agricultural produce is very 1.6 The Role of Marketing in interventions wherever necessary.
important as it contributes to the monetisation To maintain stable prices for
GDP and integrates agriculture Marketing system which promotes consumers and to ensure remunerative
with the national economy. transparency, ensures efficient prices to farmers, GOI continues to
Hence, intelligence on market performance, build up strong rely on a number of policy instruments
demand in terms of quality and interlink ages of the stakeholders and like :
quantity is important to decide encourages competition is beneficial - input subsidies for producers
efficient price discovery and to stimulate exchange process where
- regulation of markets
monetisation of produce. goods are monetised and help in
sharing benefits among the market - food subsidies for consumers
ii. Demand Management:
Managing demand supply gap participants. Effective marketing - minimum support prices (MSP)
is vital function of agricultural system which is responsive to changed
marketing. Managing demand market dynamics plays crucial role in 1.8 Transitions in the Marketing
during recession and boom enhancing productivity and increasing Along with a transition of
period with appropriate income of farmers. agriculture, the Agricultural
marketing tool is essential Marketing System has also evolved
for effective function of the 1.7 Governments Role in to a certain level. Indian agriculture
marketing system which Marketing passes through five major stages as
encourages buyers and sellers Linking agriculture to market has discussed in Table 1.1 shown below:
Table 1.1 Transition of Indian Agriculture and Marketing Approaches
Phase Situation Marketing Approach

Phase I : Pre-Green Revolution To handle deficit, manage food security
Deficit in food production
Period (1950-65) and regulate trade
Phase II : Green Revolution Period Self Sufficiency in Food grains, start of Managing distribution through
(1965-80) ‘Operation Flood’ procurement and incentivizing output
Phase III: Post-Green Revolution Adoption of product variety specific
Diversification
Period (1980-91) technologies
Phase IV: Economic Reforms
Approaching surplus Expanding market access
Period (1991-2015)
Phase V: One nation, One
Food Secure but problem of plenty
market, One tax ICT enabled Towards a National unified market
emerges
marketing (2015 onwards)
Supply chain Network of agriculture produce and strategic strengthening of the distribution received little attention in the
era of agriculture marketing system which was purely focused on marketing infrastructure and regulations. The role of private

COVER STORY
participants underwent a sea change. for agriculture, besides facilitating ensure regular and consolidated
Creating demand linked market on alternate market channels, including demand to farmers in the form
the basis of efficient price discovery opening up the system to private sector of assured market for their
become possible owing to the effective as well for alternate online marketing agriculture produce.
role of private participants in the agri platform. � Private wholesale markets
value chain.
21 States/UT have made
Effective marketing system 1.10 Notable changes in
enabling provisions for setting
eliminates inefficiencies and help Agriculture Marketing
up of such markets and only 11
in disseminating demand and price With the development of the States have notified the rules
related information to promote more alternative marketing channels there under to implement the
responsive and relevant supply like cooperative farming, contract provision.
chain. According to the target farming, organized retailing and
� Organised retailing
market, technologies usage, types subsequent marketing reforms lot of
of consumers, regions and products notable changes observed which were Retail is the last mile connect
the effectiveness of marketing attempted to increase the farmers’ with end-consumers, either
system keeps on changing. Besides income. The major notable changes food or for non-food items. The
this some external marketing forces are as mentioned below: food and agro-processor have
also play important role for certain a forward distribution channel
� Direct Marketing
agricultural commodities. Managing for their retail needs and their
Direct marketing in the context enterprise level marketing
these marketing forces relevant to
of agricultural marketing, is handled by individual
market dynamics also contribute in
where farmers directly transact processor and brand owners.
effectiveness of agriculture marketing
their agriculture produce with
system. � Farmer producer
consumers. These operates in
organizations (FPOs)
two basic formats (i) Farmers’
1.9 Agriculture Marketing Organizing producers into
Markets, and (ii) Direct
Challenges formal management practices
sourcing from farmer’s field by
The report of Committee of State processors. is necessary to bring benefits
Ministers, in charge of Agriculture of economy of scale and to
Direct marketing and direct
Marketing to Promote Reforms offset the disadvantage of
sourcing allows farmers to
released in 2013 stated the major fragmentation in landholding.
skip multiple layers in their
agriculture marketing challenges as The collective power of
transactions and benefits by
mentioned below: the farmer producer helps
skipping of intermediary
~~ Inadequate marketing in collective decisions on
margins. Though recommended
infrastructure cultivation and to make the
in the Model APMC Act &
best use of market information
~~ Fragmented supply chain Rules, very few of States have
to improve efficiency and
~~ Lack of Market intelligence issued such licenses for direct
effectiveness in activities
sourcing.
~~ Limited access of agriculture like input supply, processing,
produces market Farmers market operating transportation, distribution,
in different states such marketing and credit supply.
~~ High wastages in supply chain
as Apnamandis in Punjab, The aggregation of producers
~~ High incidence of charges Haryana, Shetkari Bazaars in in organized system like FPO
~~ Lack of nationally integrated Maharashtra ,Rythu bazaars integrates them with the supply
market in Andhra Pradesh Uzhavar chain wherein opportunities
~~ Less price realization to Sandhai in Tamil Nadu, and for resource optimization,
farmers Raitha Santhe in Karnataka. cost minimization and profit
~~ Demand fluctuations � Contract Farming maximization can be explored.
Contract Farming overcomes In XII plan, GOI encourages
~~ Seasonal productions
the demand issues, marketing state to promote FPO as a
~~ Long intermediation regular activity under various
connectivity and accessibility
related issues and market Schemes including RKVY
The Department of Agriculture (Rashtriya Krishi Vikas
middlemen related issues.
Cooperation & Farmers’ Welfare Yojana).
Assured exchange of
formulated recommendations known
agriculture produce of The Farmer Producer
as the Model Agricultural Produce
predetermined quality and Company(FPC) is also
and Livestock Marketing (Promotion
quantity to consumers can becoming effective in majority
& Facilitation) Act, 2017, which
be ensured through contract of the states as it can leverage
incorporates various changes to reflect
farming mechanism. This also its strengths in accessing the
the agenda of a unified national market

COVER STORY
input and output resources, times of undirected surplus marketing tools, techniques, strategies
in adoption of technologies production. and models which not only enhances
and services to create and add ~~ Increase in revenue the efficiency and effectiveness of the
value to the member farmers generation – a well organised marketing system but also create and
by enhancing their collective marketing system will increase add value to all the members in the
bargaining power. the sum total of revenue agriculture value chain is need of the
� Cooperatives in agricultural generated and more equitable hour. With the adoption of technologies
marketing sharing of the revenue in the and digitisation, Agriculture marketing
agricultural value chain. in India is evolving and trying to
Cooperatives have achieved
become more consumers centric. With
limited success and were ~~ Market Expansion - The
better understanding of the agriculture
recognized as one of the effective marketing system will
market and latest application
means to aggregate farmers for always promote the expanding
of modern marketing tools and
establishing scale in marketing of the market range of the
techniques has a potential to reduce
and production activities, producer/supplier and provide a
market inefficiencies and enhance
besides easing access to credit better choices to the consumers
agriculture product specific marketing
and other services over the .Market expansion connects
strategies to overcome the problems of
years. demand and supply centers as
agriculture and contributes in farmers’
� Food & agro-processing a web of network just like one
income and making agriculture
unified national market. This
The food and agro-processing farming economically viable and
reduces price dispersion across
units are important mode sustainable.
country which comes owing
for farmers to monetise their
to information asymmetry. It
produce and enhance the share Bibliography
removes price volatilities and
of farmers in value chain. Agro 1. Agricultural Marketing in
demand fluctuations.
processing units suffers from India, SS Acharya & Agrawal,
seasonal production, lack of ~~ Increased competitiveness – a
6th Edn 2016
technical knowhow, irregular vibrant marketing network will
create a competitive market 2. Marketing Management:
demand, poor infrastructure,
environment with improvement Analysis, Planning and
low public investment,
in resource optimization Control, Kotler 1972
mismanagement, high level of
fragmentation and inadequate and incentive for reducing 3. Report of the National
credit availability. Linkages inefficiencies in the supply Commission on Agriculture,
between producers and chain. This enhances marketing 1976
processors are not adequately productivity and profitability 4. Census India, 1961
developed.GOI promotes agro of every participant in the agri
5. MoSPI, 2017
processing units to enhance value chain.
6. The Role of Marketing in
value and increase the share ~~ Creation of Alternate
Economic Development of
of farmers in agri value chain Marketing Channels - An
Developing Countries, Alex N.
which is very low compared effective marketing system
Ifezue (2005)
to the share of farmers in would create alternate
developed countries. market channels to widen the 7. Three roles of Agricultural
consumer base. It promotes markets, Economic and
1.11 Effectiveness in marketing multiple selling or market Political Weekly, Vol KLVII
system options through social media, no. 52, Harris-White, Ali Jan
e commerce and other ITES (2012)
The following specific goals
and factors need proper attention services. 8. Agricultural Marketing in
to demonstrate the efficiency and The National Commission on India, Acharya and Agarwal,
effectiveness of the marketing system Farmers (NCF) stated that marketing, 6th edition, pg 475-476
to enhance the incomes of farmers. storage and processing of agricultural 9. Extracted from report of the
~~ Demand signals to supply side produce needs to shift to one Committee of State Ministers,
– a well organized marketing that promotes grading, branding, in charge of Agriculture
system will communicate packaging and development of Marketing to Promote
backwards from Fork-to-Farm, markets at national and international Reforms, 2013
in advance to production, such level.
that the entire supply chain
will function to service Market 1.12 Conclusions:
[email protected]
intelligence, on basis of past Agriculture marketing if deals with
trends and predictive analysis the market realities and addresses the
is a key driver, especially in challenges by developing innovative

INTERVIEW
CMA AJAY AGARWAL (ICoAS)

Director (Finance)
Security Printing and Minting Corporation of India Ltd. (SPMCIL), New Delhi

INTERVIEW
S
hri Ajay Agarwal joined Q. How would you describe Administrative Booklet for
SPMCIL as Director your journey as Director streamlining procurement and
(Finance) w.e.f. 23rd (Finance) of SPMCIL, such a other administrative issues
November 2017. He is a Gold prestigious organization? in 110 subordinate offices of
Medalist Commerce Graduate, Cost & Ministry across India etc.
Management Accountant and Masters A. My journey as Director
in Business Administration (HR). He (Finance) of SPMCIL has been Q. How has the company
joined Indian Cost Accounts Service in extremely fulfilling to say the performed over the past year?
the year 1992 and has served various least. To be associated with
Ministries & field organizations in such a prestigious organization A. Despite the challenges of
various capacities. He served Ministry of with rich history and tradition the business and its surrounding
Food Processing Industries, Ministry of of carrying out the sovereign environment, SPMCIL has
Finance, Ministry of Health & Family
function of printing currency registered yet another year of
Welfare, Ministry of Commerce. He
for the nation instils a sense of strong performance in 2019-20.
looked after around 110 subordinate
offices spread across India during his
pride in me. I joined SPMCIL While focusing on the production
tenure with Ministry of Health & Family in November 2017 and it’s targets, the Company has also
Welfare as Director Administration been nearly 3 years with increased productivity per
& Vigilance. He was instrumental the organization. During the employee considerably. In terms
in bringing systemic improvements course of these 3 years, I have of financial performance, the
in the functioning of various offices introduced multiple initiatives Profit before Tax (PBT) from
of Ministry of Health like Central across the finance function continuing operations for the
Government Heath Scheme (CGHS), to make it more robust and year 2019-20 was INR 1026.79
Port Health Offices (PHO), Airport productive. My intent has been crores as compared to INR
Health Offices (APHO), Regional to transform the role of Finance 800.69 crores (regrouped) for
offices and other health institutes of department from a ‘controller’ the year 2018-19 registering a
national prominence through numerous to an ‘enabler’ for new initiatives growth of 28.24% over previous
innovative measures. in alignment with industry year.
He also worked as Chief Vigilance requirements. I would like
Officer, IREDA under Ministry of New to express my deep sense of Q. What emerging
& Renewable Energy. He was Director appreciation to the CMD and my constraints (if any) are you
(Finance), Delhi State Industrial and fellow Directors for supporting facing towards developing
Infrastructure Development Corporation me at every step during this time. state-of-art currency, coins and
Limited (DSIIDC) for more than four diversified security products
years. Prior to joining SPMCIL he
Q. Before joining SPMCIL you in a transparent, cost-effective
served Office of Chief Advisor Cost,
served in various ministries and efficient manner? How do
Department of Expenditure, Ministry
of Finance as Advisor (Cost) for a short
like Ministry of Food Processing you deal with the same?
duration. Industries, Ministry of Finance,
Shri Ajay Agarwal has travelled widely Ministry of Health & Family A. SPMCIL has well established
during his assignment with various Welfare and Ministry of and globally renowned units – 4
Central Government Ministries. He has Commerce. Can you tell us mints, 2 currency presses, 2
attended various training programmes about which ministry you found security presses and 1 paper
in India and abroad including training very challenging and how you mill- which deploy latest
in Financial Analytical Skills in London handled it? state-of-the-art technologies
School of Economics and training on and processes. SPMCIL units
Public Private Partnership (PPP) in a A. I would say my 5-year collectively have almost 100
renowned institute of USA, The Institute stint from 2005-2010 with years of security printing
of Public Private Partnerships (IP3), the Ministry of Health & experience and over two
Washington. Family Welfare was one of centuries of minting experience.
Shri Ajay Agarwal has more than the most challenging as well The units have continuously
30 years of experience and expertise as the most fulfilling. I got an evolved and adapted to changing
in corporate finance, corporate opportunity to work on myriad Marco-economic scenarios
governance, capital structuring, equity areas impacting healthcare over the years. We believe in
and debt funding, strategic business system in India. I oversaw continuously upgrading our
planning, projects funding, treasury some of the key initiatives of manufacturing capabilities and
and financial management, financial
the Ministry including but not aligning them with prevalent
and internal control, supply chain
limited to revamping of Central industry benchmarks. At SPMCIL
management, budgetary control,
cost control, process improvement,
Government Health Scheme we ensure that increased
compliance, statutory and management (CGHS), Contingency Plan for focus is given to research
reporting. dealing with Emergencies, and development, machinery

INTERVIEW
modernization and capacity building this competition. More so, in times A. SPMCIL being a fully
to sustain the wave of upcoming of COVID, strengthening domestic Government-owned organization
technology and security features in manufacturing capabilities through has proactively followed all
product segments. continuous process improvement guidelines issued by the Government
and innovation, and reducing import of India to mitigate the impact
Q. What are the key challenges dependency on critical items will of COVID from time to time. The
faced by the company in terms help the Nation emerge stronger. management has ensured that the
of global competition, consumer At SPMCIL, we are following the guidelines are strictly implemented
behaviour and technological core idea of self- reliance brought across all the 9 units and that
innovation? What steps have been to fore by the ‘Atmanirbhar Bharat sanitization drives are conducted
taken to address these challenges? Abhiyaan” launched by the Central frequently. The production planning
Government. In fact, over last few and procurement timelines have
A. Importance of becoming years the organization’s intent accordingly been re-adjusted to keep
future ready in the world of rapid has been towards indigenous a balance between employee welfare
digitization, automation and manufacturing under which we and meeting production targets.
consistently increasing demand of have now been producing critical Furthermore, in view of promoting
sophisticated technology cannot items such as security inks, security employee welfare, SPMCIL is
be overstated. SPMCIL’s business papers in-house. providing full reimbursement to its
verticals and product portfolio employees for hospitalization and
face the challenge posed by rapid Q. What is your outlook on other related expenses incurred due
adoption of digital security features Indian economy for the next 5-10 to COVID.
and process automation, to which years? Do you suggest any changes
SPMCIL has responded pro-actively for a better India? Q. What one piece of advice
by taking initiatives to expand would you give to the young CMA
current digital and R&D capabilities A. The outlook for the Indian professionals?
and identify areas for developing economy prior to the outbreak of
credentials in digital product space. COVID-19, was looking very positive. A. Never give up! I would like
We are in the business of printing First, the bumper rabi harvest and all the young professionals to be
money and have been observing the higher food prices during 2019-20 resilient and strong when it comes
high growth rate with which digital provided conducive conditions for to commitment and values. I really
payments have risen in recent years. the strengthening of rural demand. want our new generation to aspire
Cash is still king in India, but there Second, the transmission of past for their higher spiritual awareness.
has been perpetual shift in favour of reductions in the policy rate to bank In this slipping world, it can get
digitisation in recent years. lending rates had been improving, tough to hold on to the right things.
However, there is still a large with favourable implications for But nonetheless, everything comes
part of our society that completely both consumption and investment with time and honesty. I want the
depends on cash for their daily demand. Third, reductions in the young CMA professionals to never
transactions. Plus, when it comes goods and services tax (GST) rates, doubt themselves, believe in the
to secure payment methods, cash corporate tax rate cuts in September higher power and have faith in the
is almost unbeatable. In terms of 2019 and measures to boost rural spiritual systems of the world. It
consumer behaviour, I therefore and infrastructure spending were might come late, but for sure, it will
believe in the long run, given the directed at boosting domestic come.
context of Indian society, both cash demand more generally.
and digital payments will co-exist. Although many projections
indicate a slump in the global
Q. Elucidate your views economy post the COVID-19 era, but
concerning the significance of I still foresee the Indian economy to
self-reliance and self-efficiency in bounce back with a sharp growth
the time of crisis like the COVID rate in coming financial years. I am
pandemic. confident that post covid we will
emerge way stronger in the market
A. The definition of self-reliance than we ever were.
has undergone a change in the
globalized world. It no longer A. How is your esteemed
means being self-centred. I believe organization responding to this
that self-reliance will prepare the Pandemic crisis? What more
country for tough competition in needs to be done to make it easier
the global supply chain, and it is for SPMCIL to operate in the new
important that the country wins normal?

DIGITAL OBJECT IDENTIFIER (DOI)
Issue: October - 2020 [Vol. 55 No. X]
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Name of The Article Name of Author/s Volume Issue DOI Numbers
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VOCAL FOR LOCAL: INCENTIVE SCHEMES
CMA Arnab Chatterjee Vol.55 Oct-20 10 25-27 10.33516/maj.v55i10.25-27p
FOR PHARMACEUTICAL API INDUSTRY
INDIA’S QUEST FOR SELF RELIANCE IN
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LESSONS FROM CHINA
OVERHAULING EDUCATION STRUCTURE
Chandrakant S Arakeri Vol.55 Oct-20 10 31-33 10.33516/maj.v55i10.31-33p
TO BE SELF RELIANT
ATMANIRBHAR BHARAT ABHIYAAN: A
Sourav Prasad
STEP TO STEER INDIA TOWARDS SELF- Vol.55 Oct-20 10 34-37 10.33516/maj.v55i10.34-37p
Dr. Debasish Sur
RELIANCE
MAKE IN INDIA – REALIZING A COVETED
Deepak Kumar Mehto Vol.55 Oct-20 10 38-41 10.33516/maj.v55i10.38-41p
DREAM
MEASURES TO MAKE MSMEs KEY TO Dr. Inchara P M Gowda
Vol.55 Oct-20 10 42-46 10.33516/maj.v55i10.42-46p
SELF-RELIANT INDIA Dr. K. S. Sarala
SELF-RELIANT INDIA: A STUDY ON Dr. Meenu Maheshwari
CONSUMERS’ PERCEPTIONS TOWARDS Dr. Ashok Kumar Gupta Vol.55 Oct-20 10 47-51 10.33516/maj.v55i10.47-51p
SWADESHI PRODUCTS Sudarshana Sharma
SELF RELIANT INDIA - STATUS
CMA Padmanabhan
& PROSPECTS - AND ETHICAL & Vol.55 Oct-20 10 52-55 10.33516/maj.v55i10.52-55p
Satyes Kumar
CONSTRUCTIVE ROLE OF CMAs
PATHWAY TOWARDS BUILDING A SELF- CMA (Dr.) Debdas
RELIANT ECONOMY WITH SPECIAL Rakshit Vol.55 Oct-20 10 56-58 10.33516/maj.v55i10.56-58p
FOCUS ON MSME SECTOR Ananya Paul
DIGITAL TRANSFORMATION OF
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Vol.55 Oct-20 10 59-63 10.33516/maj.v55i10.59-63p
ROLE OF IIoTs AND IoRTs FOR SMART Senior
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DESIGNING INVESTOR FRIENDLY
CMA (Dr.) T. P. Ghosh Vol.55 Oct-20 10 64-67 10.33516/maj.v55i10.64-67p
DIVIDEND TAX FRAMEWORK
LIQUIDITY STRESS TESTING A TOOL
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FEW PRACTICAL ISSUES
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DIGITAL TRANSFORMATION
DIGITAL TRANSFORMATION -
INDIAN STARTUP ECOSYSTEM
AND BLOCKCHAIN PLATFORM
FOR CROWD FUNDING
CMA (Dr.) Paritosh Basu

Senior Professor
NMIMS School of Business Management
Mumbai
S
Introduction (Apps) and / solutions that are essential for frontend
tartups across the world have made and are transaction processing, RPA, CRM with AR and VR, data
continuing to make significant contributions for analytics with AI and ML, information safety and security,
digital transformation of business entities across storage, and retrieval management, etc. Certain startups
all industry sectors and government organisations. help by manufacturing innovative products like IoTs,
This has convincingly been established by many research sensors. robots and drones, etc. that are essential for digital
scholars. India is no exception to this phenomenon. Startups transformation.
help such entities by providing innovative applications

During several personal interactions of the author many for crowd funding.
CIOs, CTOs and CDOs have acknowledged such help and
support. According to them such collaborations with startups Startup Ecosystem in India
prove to be effective and efficient in terms speed, quality, A dream is a dream! An idea is an idea. Not all dreams are
and costs. ideas, and not all ideas are dreams. But an idea or a dream
Modus operandi for such collaborations varies depending gives birth to a Startup. This process of startups emerging
upon financial strength and stability of a Startup that has from thousands of dreams has now emerged as a large
reached the stage of providing an adaptable solution in the ecosystem in India. Most of the first-generation entrepreneurs
framework of digital transformation strategy of an entity. In here strive more for self-satisfaction by solving a problem
many cases there are mergers and acquisitions. Some deals for humanity than taking her / his startup entity as a vehicle
are for outright purchase of the technology, product, solution for earning money.
and / or Application (App). In other cases fee-based deals are According to a published article1 definition of a Startup
done with varying options for initial fixed fee, followed by as per Government of India is “An entity less than seven
recurring revenue earnings through royalty depending upon years young with an annual turnover of less than 250 million
number of customers, or units sold and / or time based fixed rupees and headquartered in India. The Startup India
payments. But before all these every startup passes through initiative by the country’s Department of Industrial Policy
painful struggle for existence. and Promotion helps build a positive, effective ecosystem
There are instances when corporate entities encourage in the country, turning business ideas into a reality for a
young software programmers and designers by conducting flourishing startup environment. States and union territories
hackathons. Hackathon is a portmanteau of the words hacker, across the country introduced startup policies following the
indicating a clever programmer or designer, and marathon government’s initiative.”
which is an event for testing endurance. In digital world Government of India in its own website ‘Startup India’2
hackathon also denotes a kind of social festival. It is a has mentioned that “India has the 3rd Largest startup
congregation of computer programmers where interested ecosystem in the world; expected to witness YoY growth of a
business entities challenge young computer programmers to consistent annual growth of 12-15%. India has about 50,000
improve upon or build innovative new software / Apps with startup in India in 2018, around 8,900 - 9,300 of these are
rewards for success. Many small Startups in their formative technology led startups. ……. Startups in the country have
stage also extends help through this route. been able to create an estimated 40,000 new jobs over the
years, taking total jobs in the startup ecosystem to 1.6 to 1.7
Objective lakh. ….. Significantly, women entrepreneurs stood at 14%
It is an encouraging situation when India Inc is trying up from 10% and 11% over previous two years”
to fire all cylinders to transfigure Bharat (please read rural Exhibits - I and II indicates Industry wise and States and
India) as the engine of growth. Anaximander, the great Union Territory wise numbers of Startups recognised by the
Greek philosopher “......postulated about the development of Department of Promotion of Industry and Internal Trade in
life from non-life and the evolutionary descent of man from India (DPITI). There were 28,979 such recognised Startups
animal. Charles Darwin simply brought something new to in India as on March 1, 2020. These Startups cover about
the old philosophy -- a plausible mechanism called natural fifty businesses and other services segments. Readers will
selection.” India is at the cusp of such a Darwinian moment agree that these numbers will be more in thousands when
for pervasive digital transformation, the follow of which is unrecognised Startups are also taken into count.
gaining accelerated pace. The present author is of the view
Government of India under its ‘Atal Innovation Mission’3
that this DIGITAL RIVER, as he contemplates, will be able
has taken several initiatives for facilitating development of
to progressively irrigate Bharat with financial inclusion for
successful Startups in many ways. One of such initiatives is
inclusive happiness. All efforts for accelerated GDP growth
setting up of fifty-nine Atal Incubation Centres across the
will further be navigated by this River. Startups collectively
country, the School of Business Management, Mumbai of
are emerging as one of the most important and effective
NMIMS University hosts one such Centre. Besides many
driving force for this.
private organisations are also functioning as incubators
But it is still a sad story that none worry much about a and accelerators. These Centres also try to bring in startup
Startup for its days of multifaceted battle when ‘Startupians’ investors for show-casing solutions developed by cohorts
struggle, burn their hard earned savings, bootstrap, and stake being incubated by them.
family jewelleries while striving to innovate a solution,
But funding of a startup at its formative stage continues
develop a software or designing and manufacturing a
to remain elusive and far too less than what is needed, and
proudct. The primary objective of a ‘Startupian’at this stage
available in developed countries.
is more for self-actualisation of her / his dream than earn
money.
Startup India Initiative for Startup Certification
Therefore, the single point objective of this paper is to
As a part of the Startup India initiative DPITI of
understand the present status of Startups in India in terms
GoI organised the virtual National Startup Award 2020
of numbers, impact of Covid-19 Pandemic on them, and
programme and announced the names of startups across
keeping that backdrop in view ideate a scheme and platform

various categories and sectors. In that event an announcement a structured framework for Startups to source funds from.
was made about the “….launch of a startup discovery
platform called ‘Startup India Showcase’ for recognising The following table indicates Startups funded by Fund
most promising startups in the country, along with the of Funds under Startup India Programme based on the
launch of the blockchain-based certification verification initiatives of Government of India.
system, which will enable instant verification and access to
certificates of recognition issued by the industry body.” Niti Number of Startups Supported and Amount Invested
Aayog is working on such a certification platform in under Fund of Funds for
collaboration with Indian School of Business and Bitgram.4 Start-ups (FFS) by Startup India Programme in India
This initiative is a good step in the right direction but one (As on 31.03.2018 to 28.02.2020)
needs to wait and watch how far it attracts investors and Particulars 31.03.2018 31.03.2019 28.02.2020
results into actual funding in reality.
No. of Start-ups 120 218 320
Impact of Covid-19 Pandemic
Amount Invested
Entities across all industry sectors irrespective of their in Start-ups 570 1,403 3,378
size and nature of business have severely been affected by (Rs. in Crore)
Covid-19 Pandemic. Startups can most certainly not remain
insulated from this. Almost all startups across the globe have
badly been affected by the Pandemic. In a report published Source: www.indiastat.com
by Statista in June 2020 Katharina Bulchholz5 narrated the
following position of startups, small and medium enterprises Readers will appreciate that Rs. 5,351 Crore provided
in India. This report is based on 28,000 responses against a in about three years is by any count not sufficient for
survey conducted by them. any meaningful development, stabilisation and growth
Readers can read the following statistics provided by the of Startups in India and their impactful contributions to
author alongside the pie chart. It depicts that about 50% of industries and governmental administration. A definite need
the respondents are either out of funds or have less than a had emerged long before Covid-19 Pandemic for making
month’s equivalent cash requirement. 4% have closed shops. alternative arrangements for funding admittedly circa 50,000
Only 46% have some breathable space between one to six Indian startups from the very embryonic stage till an Angel
months, out of which 30% are in immediate need of cash. Investor or a VC steps in. For many startups even Angel
investors may not agree to fund. Unfortunately, startups in
general hardly has any tangible asset worth the name to be
offered as a collateral for taking loans from banks.
Time is, therefore, here, and now for providing an effective
alternative option(s) to startups for sourcing funds from. The
present author feels that structured crowd funding platforms
could be one such options.
Crowd Funding for Startups

Readers may be aware that the history of crowd funding
dates to1885. Joseph Pulitzer, an American newspaper
editor, arranged to collect funds for building the pedestal
for the Statue of Liberty which was wating for assembly
and installation during the summer of 1885. It would be
interesting to quote Rodrigo Davies6, of the MIT. He wrote
that, “As the Statue of Liberty was shipped from France,
efforts to raise funds for its pedestal stalled. But thanks to a
Source:https://www.statista.com/chart/22027/startup-
newspaper campaign and the small donations of hundreds of
sme-financial-situation-india/
residents, the base was eventually built.” One of the recent
crowd funding news goes like this. “Rotterdam studio ZUS
Even if Covid-19 Pandemic as a negative factor and its
has completed what they describe as the “world’s first
impacts are set aside, most of the Indian startups were never
crowdfunded public infrastructure project” - a 400-metre-
comfortable with their liquidity position. As have been said
long pedestrian bridge in their home city (+ slideshow).” 7.
in a previous section Startupians mostly put at stake their
last penny from savings and family jewels. This is almost One of the options for such crowd funded initiative
a worldwide phenomenon. They do not even leave any is that when the asset is built by money from the crowd,
option to bootstrap till finding an Angel investor. Many of equity shares may be issued to the individuals comprising
them collapse if time taken to establish proof of concept the crowd. The asset so built is thus collectively owned
and / or developing the prototype take time longer than they and administered by the governing body of the initiative.
planned. Indian money market event today does not provide Charges are generally collected for use of such an asset built

by crowd funding. Profit earned are distributed as dividend equity and / or as loan would be possible for those
and a person can divest her / his equity share if needed. startups which would require domestic and / or
The author is of the strong view that in India several distributors when they start mass production. If loan
crowd funding platforms for funding startups can be is provided, settlement can be done by equivalent
floated by private technology firms like Tech Mahindra, values of free supplies at a discount equated with rate
L&T Technology, Infosys, etc. Blockchain would be the of interest. If the startup is still in need of working
most effective technology for building and operating such capital, the term could be XY% payment in cash
a platform, as has already been tried and tested in many and balance to be adjusted against loan. In case of
developed countries. equity the startup may retain the right to buy-back at
a predefined rate of IRR over a pre-defined timeline.
The author’s interactions with many HNIs, young
corporate executives and technology professionals lead to ~~ Person or Business to Startup Equity in Kind
conclude that Indians are ready to allocate a small portion of - A startup as a business entity would need certain
their investible surplus for startups. They may not be ready services like that of a mentor, lawyer, marketing
to fund one Startup at the risk of total loss. But they are ready agency, celebrity model, logistics, financial and
to allocate that to several startups in small portions. This can accounting, etc. Such services can also be arranged
further be validated by extensive primary survey. against equity allotment in future for equivalent of
the service cost at a pre-defined value per share.
Moreover, there are high probabilities of corporate
houses providing funds to startups through crowd funding Some more such funding options can be designed to suit
platforms. Such funding are expected from those who are business needs of both sides. A startup can simultaneously
looking for Apps and / or solutions for digital transformation opt for more than one such option befitting its requirement.
or tangible products like, IoTs, IoRTs, sensors, drones,
robots and its spare parts, and / or unique wearable consumer Blockchain Platform and Smart Contracts
electronics like a FitBit. There is no need to say, that such The above schemes for crowd funding can be organised
fund providers must be convinced, or perceive on their own through a Blokchain technology-based platform. This will
that such products rare and expected to be in high demand help ensuring all possible benefits of blockchain technology,
because of uniqueness and value for money to users. which need not be overemphasised in this brief article.
The following could be an illustrative list of options Smart contracts, drafted by eminent lawyers, can digitally be
for crowd funding depending upon the nature of product / embedded into the platform with needful flexibility befitting
services and quantum of funds needed by a startup: the requirements for each scheme.
~~ Peer to Peer Funding for Equity - These funds are In cases of funding by equity, the same Blokchain Platform
expected to come from those young professionals can be used for buying / selling and transfer of equity shares
and HNIs who are ready to allocate a small portion from one owner to the other. This technology will bring
of their investible surplus to more than one startups. in credibility and transparency for the transactions, and
Their expectations would be that one or two such directly provide feed for accounting of transactions in books
investment would be successful enabling them to of accounts and reporting thereof. Online auditing of such
exit with high return. The startup may retain the right transactions would also be possible by statutory auditors of
to buy-back at a predefined rate of IRR over a pre- the participating individuals / organisations.
defined timeline. Strict processes can also be introduced for ensuring ‘Know
~~ Business to Startup Lending for Reward - These Your Participant’ before anybody can propose and process
group of lenders would be those business entities any transaction. In this context the initiative of Niti Aayog
which have interest in seeing success of the startup for certification of startups through a Blockchain Platform
as a vendor of unique product and / or service that the will prove to be useful. The same platform can be used for
entity would need. Such entities would be ready to the proposed KYP of investors also with interoperability
provide loan in exchange of discounts on market price ensured between the two Blockchain Platforms. Government
at a predetermined rate and a commitment that they can also administer various tax benefits to startups through
will have the right of priority as preferred customers. such a Blockchain platforms.
Such loans can also progressively be settled in lieu of
payment against supplies. Recommendation for Regulation
~~ Peer to Startup Lending for Reward - This will be Indian financial Regulators are known for their resilience
the group of fund providers who will join to provide and innovative measures while handling regulatory
funds when a startup would promise that such functions and as mentors for financial markets. The author is
lenders would have right to receive the products at of the view that the aforesaid propositions for crowd funding
a pre-defined rate of discount, equated to agreed rate should not be left as free for all and should be bought under
of interest, on the market price out of the first few strict semblance of regulation. This will provide confidence
batches of production to investors in startups at its formative stage to the effect
that:
~~ Business to Startup Funding for Right of
Distributorship - Such a possibility of fund against ~~ All transactions will remain within the realms of law,

~~ Transparency, equity, and justice will be ensured for configuring Blockchain Platforms for crowd funding, and
all stakeholders, handling of transactions directly by the concerned parties
~~ The entire system will function under the watchful without any intermediation.
supervision of the Regulator, and
Conclusion
~~ Dynamic regulatory provisions will be flexible and
modified befitting the emerging need of business and The author believes that all stakeholders of the startup
startup ecosystem. ecosystem in India and for that matter any other country
However, the Regulator will have to ensure that their will find the above proposition for Crowd Funding
prescribed regulations are implementable without much of implementable using a Blockchain Platform. It will be his
cost to be incurred. A regulator like SEBI, who also regulates privilege to participate in any such initiative by any private
Alternate Investment Funds like VC and PE Funds, may step or public organisation.
in. It can provide the needful guidance and regulations for
Exhibits
Exhibit - I Exhibit - II
Industry-wise Number of Startups Recognised by
State-wise Number of Recognised Startups under Statup
Department for Promotion of Industry and Internal Trade
India Initiative of India
in India
(As on 01.03.2020)
(16th January 2016 - 1st March 2020)
No. of
No. of Recognised
Industry States / Union Territories Recognised
Startups
Startups
Advertising 282 Andaman and Nicobar Islands 12
Aeronautics/Aerospace and Defence 216 Andhra Pradesh 478
Agriculture 1,123 Arunachal Pradesh 4
AI 694 Assam 197
Analytics 308 Bihar 374
Animation 32 Chandigarh 105
AR/VR (Augmented + Virtual Reality) 209 Chhattisgarh 377
Architecture/Interior Design 155 Dadra and Nagar Haveli 6
Art and Photography 116 Daman and Diu 3
Automotive 454 Delhi 3740
Chemicals 136 Goa 113
Computer Vision 108 Gujarat 1555
Construction 699 Haryana 1635
Dating/Matrimonial 27 Himachal Pradesh 64
Design 277 Jammu and Kashmir 108
Education 2,031 Jharkhand 235
Enterprise Software 782 Karnataka 4206
Events 137 Kerala 1292
Fashion 328 Lakshadweep 1
Finance Technology 930 Madhya Pradesh 815
Food and Beverages 1,183 Maharashtra 5477
Green Technology 868 Manipur 19
Healthcare and Lifesciences 2,425 Meghalaya 9

House-hold Services 220 Mizoram 3
Human Resources 461 Nagaland 10
Internet of Things 758 Odisha 520
IT Services 4,064 Puducherry 30
Marketing 629 Punjab 223
Media and Entertainment 534 Rajasthan 823
Nanotechnology 66 Sikkim 3
Non-renewable Energy 79 Tamil Nadu 1509
Other Specialty Retailers 189 Telangana 1609
Pets and Animals 72 Tripura 12
Professional and Commercial Services 1,214 Uttar Pradesh 2342
Real Estate 261 Uttarakhand 231
Renewable Energy 814 West Bengal 839
Retail 704 India 28,979
Robotics 210
Safety 80
Security Solutions 252
Social Impact 203
Social Network 283
Sports 158
Technology Hardware 867
Telecommunication and Networking 281
Textiles and Apparel 318
Transportation and Storage 561
Travel and Tourism 583
Others 1,598
Total 28,979
Source : Lok Sabha Unstarred Question No. 2912, dated on 11.03.2020.

Note: The author acknowledges contribution of Rajashree Basu in writing this article.
Webliography
1. https://www.statista.com/topics/4839/startups-in-india/
2. https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/indian-startup-ecosystem.html
3. https://aim.gov.in/index.php
4. https://inc42.com/infocus/blockchain-this-week/startup-india-unveils-blockchain-based-certificate-verification-
system/
5. https://www.statista.com/chart/22027/startup-sme-financial-situation-india/
6. https://www.bbc.com/news/magazine-21932675
7. https://www.dezeen.com/2015/07/16/luchtsingel-elevated-pathways-bridges-rotterdam-cityscape-zus-architects/
[email protected]

HR
LEADING IN UNCERTAIN
TIMES –
PREREQUISITES FOR BETTER
NAVIGATION
Abstract
One can neither predict uncertainty

nor escape from it. Instead of fighting
adversities with fear and inhibition, one
can face them with courage and conviction.
Ace Tennis player, ‘Arthur Ashe’ once said,
“One important key to success is self-
confidence and an important key to self-
confidence is preparation.” Inspiration
Debopam Chell
Asst. Vice President
to pen down this article was drawn from
Reliance Industries Limited these golden words. Trust the said article
Mumbai will help young professionals recognize
various nitty-gritty’s and prepare well to
handle uncertainties effectively.
I
n my last article “Conquering and establishments etc. are shut; and safe. On the other hand, everyone
the Difficult Phase”, major movements by road, rail or having been locked within the four
published in March 2020, I air are restricted, if not prohibited walls is desperate to find a foothold for
had narrated on some of the completely; medical infrastructure and staying alive. People carrying out their
aspects that one needs to keep in professionals associated with health, office commitments by working from
mind, for dealing with uncertainties sanitation and security(i.e. doctor, home; trying to manage daily needs
during middle phase of any project. nurse, paramedic personnel, medical of groceries, medicines, milk, fruits
Hardly did I know then that we were shops, sanitary workers, police, etc.) and vegetables, without venturing
heading for an unprecedented medical are stretched beyond limits; people outside; coping with day to day house
emergency, much beyond anyone’s have lost their jobs; migrant workers hold chores by themselves and most
imagination. To be honest, COVID-19 witnessed pitiable conditions for going importantly determined on remaining
Pandemic has caused havoc. On one back to their native states and so as the healthy in this trying time. In nutshell,
hand, economy has shrunk; schools, Government, facing an unparalleled hardly there is anyone, who has not
colleges, offices, factories, shops mayhem trying to keep citizens healthy been impacted with these hostile,

HR
adverse uncertainties. more meaningful. When you take everyone’s growth. Remember, when
It is always desirable to lead a strategic pause, you allow your mind you help identify opportunities in
self-assured life and more so during to observe and absorb things that uncertain times and figure out their
uncertain times. In fact, it’s not only are unfolding in front of you more individual hotspot, they can build on
desirable but an absolute necessity as clearly and this can help you chalk it. Another very important point to
well. To remain calm and composed, out your future course of action. make a resilient team is,all members
one must stay watchful on his actions Researchers confirm that people who must possess baseline knowledge and
and behavior. When observed closely, take strategic time outs are more as a leader, one must ensure the same.
one can unearth some of the nitty- productive. They are the ones, who To transcend into a resilient leader,
gritty’s which can simplify, the come out with better ideas and their you must remain thoughtful of your
otherwise strenuous journey ahead. performance are superior to others, style of leadership and comprehend
Listen, no matter how meticulously who fail to take strategic pause. following ‘elements of your
you plan or execute, there are bound Furthermore, uncertain times create adversity quotient’ ,viz.:
to be occasional surprises. Hence, invaluable opportunity to cut down on a) Reach: Ability to comprehend
acknowledge uncertainty as an some of our bad habits, which might the scope of an adverse
inevitable phenomenon and once you have silently creped in during good situation
accept this as normal, you actually and comfortable days of the past.
b) Ownership: Ability to decide
empower yourself to set the ball These habits could include increase
and improve from adverse
rolling in the desired direction. in discretionary expenses, skipping
condition
timely food and regular exercises,
For dealing with any adversity, c) Control: Whether you have
failing to spend quality time with
the first thing that needs mention is, influence over what happens
family members and side stepping
‘remain positive’. Remember, when next and
useful and healthy discussions with
we are optimistic and hopeful, we
friends and relatives that have massive d) Endurance: Ability to grind
apply our mind more objectively;
influence in expanding our vision. through this condition and get
we get less disturbed and distracted
Next in line is ‘resilience’. to a desired outcome.
by noises and chaos around us. We
manage the controllable better. On the Resilience is the ability to come back One of the supreme qualities of
contrary, when we are negative, the to our normal state of mind after an any leader is to remain flexible
fear of uncertainty engulfs us. There adverse event. In adverse situation, and adaptable. This will help him
is a huge conflict which goes within one can approach a problem either navigate through the challenges
our brain cells and makes us nervous. with a pessimistic attitude or with skillfully. When faced with adversity,
You will be surprised to know that an optimistic attitude. Find out, how a good leader remains curious that
research study has demonstrated that others (whom you control),view much longer. He surveys each step
‘negativity bias’ affects more than you. Are you considered a genuinely meticulously, asks questions, gathers
75% of people, because they remain optimist or a helpless pessimist? minute details and is least fearful
anxious even during good times. Generally speaking, pessimist people to accept that he does not have all
Frankly speaking, the circle of concern tend to view adversity as permanent requisite answers. He abstains from
should never get magnified to such an and all pervasive. They get frightened impulsive action like jumping to
extent that it reduces our capacity to of personal losses that might arise conclusion too soon. As he remains
perceive reality, accurately. One way from these uncertain times whereas painstakingly vigilant, new facts start
to overcome this negativity bias is to optimists view adversity as temporary, emerging, like, what went wrong,
use a well-recognized tool, known as limited and external. Dig deep to what steps or actions need to be altered
‘self-talk’. When we converse with discover, what is your ‘locus standi’, or which area needs more resources,
ourselves, we remain more confident. is it internal or external? Do you time and supervision etc. As situation
Hoping for positive outcome, while remain calm and composed while changes, he evaluates how accurate
working with integrity and resilience faced with impending challenges was his original assumptions and
calms down our brain and thereby or get overwhelmed by them? Find identifies which specific parameter
reduces the level of anxiety. Thus, out how do you use past setback. Do can be considered as a measure of
for eliminating negativity bias, we you and your team feel stronger and future success or failure. He assesses
must have control on our thoughts and fulfilled after every setback or end up all unintended consequences and takes
believe in our potential - our skills and being ridiculously nervous, puzzled corrective action, may be tweaking
competencies. and helpless? It is worthwhile to some processes or work schedules.
remain conscious that resilience is Decisions that are based on facts
Another very important aspect to
tested only when we venture out of and figures, are much more effective,
be kept in mind is, uncertain times are
our comfort zone. To make our team whereas spontaneous decisions are
perhaps the best times to slow down
resilient, we need to inspire them; coupled with risk. Though one may
a bit and take a tactical pause. Many
share what we are working on, what argue that spontaneous decisions
a times, you will realize that doing
are our strengths and how the current are absolute necessity especially,
nothing, is actually doing something
challenges create an opportunity for for getting an upper hand over one’s

HR
competitors, but a leader needs to must admit that there cannot be any in your uncertain and ambiguous
be extremely cautious while making set recipe to deal with every kind of journey.To quote Bob Johansen, the
such impulse decision. To cope uncertain conditions that one is likely distinguished fellow at the Institute of
with the dilemma of ‘spontaneity to face, but what you can definitely Future,“Future will reward clarity
vs. thoughtfulness’, a leader must do is, prepare yourself well- with a but punish certainty.”
assess both the aspects i.e. the kind torch or a candle and a match box in Change is the only constant in
of situation he is in and the type of your hand, so that your journey is less this world. So, the crux is to remain
thinking suitable for the same. Poor frightening. Don’t oscillate between mentally equipped for all uncertain
judgment occurs when this basic worries of past mistakes and anxieties events. When there are no options
trick is faltered i.e. the situation and of future outcomes. Remain in the but to change, successful people will
type of thinking are out of sync. present and focus on purpose. Instead start with that serenity prayer, “God,
There are two types of thinking, of remaining emotionally attached to grant me the serenity to accept the
viz.‘System 1 thinking’ and‘ System your own idea or plan, start with an things I cannot change, courage to
2 thinking’. System 1 thinking open mind. It’s quite natural to faulter change the things I can and wisdom
are fast, automatic, instantaneous occasionally, but you must be ready to to know the difference.”Remember,
and unconscious whereas System rectify and move forward. You must in life the series of positive choices
2 thinking are slow, effortful and keep going and keep growing too. that we make creates success and the
controlled. If you really wish to Navigating through unanticipated series of negative choices undertaken
be successful, internalize system path is an intriguing subject and results in our failure. To keep pace
2 thinking. Things to contemplate requires a high degree of proficiency. with new challenges, align yourself to
here are a) stop multitasking, b) Define the problem as meticulously do more, to think more and to innovate
turn off mobile notifications during as possible. Share your vision and more. Cut down on the reactive frame
serious discussions, c) avoid very opportunity that lie ahead of these of mind and respond to situations
long meetings dealing with complex challenges. Don’t merely circulate a after evaluating good, bad and the
situation, d) allocate fixed time for power-point presentation depicting ugly. Concentrate on building positive
food and rest and e) never rush to the mission. Rather, narrate a small relationship both in your personnel
conclusion in an empty stomach. story with the stated vision so that it as well as professional life. Create
To deal with uncertain situations, has that desired impact. List out what that support system, where the fear
the leader must not be ‘judgmental’. are the expected outcomes, but don’t of failure ceases to drive you into
He must, put himself in other’s shoes, stop there. Identify and recognize despondency. Remember the famous
sense their experiences and visualize some unexpected outcomes as well. African proverb, “If you want to run
how their lives have been impacted by Note down, if then scenarios for fast, run alone but if you want to
unwarranted turn of events. Assess the each of these undesirable outcomes. run far, run together.”
fears and anxieties going through their When a team is formed with people
mind and then introspect. Can you from divergent functions, you can References:
do something to put off some of their be sure of occasional resistance. 1. Paul Rozin, Edward B
fears and make them feel assured? Instead of being disturbed, identify Royzman : Negativity Bias,
Remember, when you express and prepare yourself on likely ways Negativity Dominance, and
‘empathy’, you provide an antidote to mitigate these resistances. To deal Contagion; 2001 - journals.
to people from their ‘fight or flight with uncertain times, acknowledge the sagepub.com
tendencies’, thereby enabling them to power dynamics within the group and
2. Elizabeth Scott, MS: Reduce
approach a problem with stable mind. build a coalition among the willing. In
Stress and Improve Your
Some of the other qualities that require nutshell, more you have clarity on the
Life With Positive Self Talk,
mention are ‘transparency and process ;less troublesome would be
Verywellmind.com
neutrality’. Never get fixed to a static your journey. To have less ambiguity,
mindset. Don’t hesitate in sharing you may lay down some of the ground 3. Christopher P Levy : The
essential and timely information rules like, Tactical Pause
with your team. This will help you a) what are your core values that 4. Paul G Stolz: Adversity
gain their ‘trust’ and establish an you stand up for? Quotient: Turning Obstacles
‘emotional bond’. While dealing with into Opportunities
b) what are the things that are
uncertainty, never be opinionated. Be 5. Daniel Kahneman : Thinking
non-negotiable? and
neutral to adverse findings and chalk Fast and Slow
out corrective action thoughtfully. c) what remains uncompromising?
Focus on ‘what is right rather than Summarize what you care about as a
who is right’. collective unit. You must have a Design
Do you recollect the famous quote, Clarity Canvas. You can even write [email protected]
“Failing to plan is planning to down the ‘Musts’, ‘Shoulds’, ‘Coulds’
fail?”You may ask, when things are and ‘Wonts’. Remember, all these
uncertain how do you plan? Here, I efforts will have a decisive influence

TAXATION
ANALYSIS OF NEWLY
INTRODUCED TCS
PROVISIONS U/S 206(1H) OF
THE INCOME TAX ACT, 1961
(w.e.f. 01.10.2020)
Abstract
Tax deduction at source (TDS) & Tax

collection at source (TCS) have widen
their scope from time to time, based on
identification of some areas where either
speedy tax collection is needed or avoidance
of tax concealment is highly needed. In line
with this, w.e.f. 01.10.2020, the Government
has introduced new provisions u/s 206C(1H)
CA Atul P. Suvagiya of the Income Tax Act, 1961, which deal with
Assistant Professor, BBA Programme
Department of Accounting and Financial Management Faculty applicability of TCS in case of receipt from
of Commerce sale of GOODs in excess of Rs. 50 lakhs in
The Maharaja Sayajirao University of Baroda a financial year.
Vadodara
Researcher has made an attempt to analyse
the newly introduced provisions and dealt
with its application in the practical market.
I
INTRODUCTION: OBJECTIVES OF THE STUDY:
n short, intention of legislative body behind 1. To understand the newly introduced provisions of
expansion of scope of TDS & TCS is to speed up the TCS u/s. 206C (1H) of the Income Tax Act, 1961.
tax collection & to avoid the tax concealment. Now 2. To analyse the newly introduced provisions of TCS
a day, TDS & TCS provisions are acting as a good u/s. 206C (1H) of the Income Tax Act, 1961.
internal control system for avoidance of tax concealment
3. To understand the application of the newly introduced
and also acting as a tool for collection of tax during the
provisions of TCS u/s. 206C (1H) of the Income Tax
previous year itself; i.e. the year in which income is earned.
Act, 1961, with the help of case studies.
Further today, the details of TDS/TCS get updated and
gets viewed electronically in form number 26AS & the ANALYSIS OF SECTION 206C (1H) OF THE
information being shown in form number 26AS has a good INCOME TAX ACT, 1961: Applicable w.e.f. 01.10.2020:
amount of validity & reliability because it has been uploaded (TCS)
by a third party, not by the assessee himself. Therefore
1. First important clarification is that the provisions
information in form number 26AS acts as a third party
of 206C (1H) are applicable only in case of sale of
evidence and hence it has more reliability, in the eyes of tax
GOODS. This provisions would not be applicable
authority, professionals, assessee and many more.

TAXATION
to sale of services. Further it be ignored at both levels. only in case of business, it
is important to understand the 4. While calculating the limit would not be applicable in
meaning of goods. Under the of Rs. 50 lakhs for FY 2020- case of profession. Therefore
Income Tax Act, Goods are 21, sale of goods transactions turnover of business shall be
not defined anywhere but it is carried out during the entire required to be reckoned while
clearly defined under the CGST F.Y. 2020-21 shall be required calculating the limit of Rs. 10
Act, 2017. Sale of all movable to be considered. Therefore crore.
items would be covered. sale of goods made from 9. Further we may analyse that
Further as per the Sale of 01.04.2020 to till date should to become an eligible seller,
Goods Act, 1930, “goods” be considered while calculating the word used are “TOTAL
means every kind of moveable the limit of Rs. 50 lakhs for SALES, gross receipts or
property other than actionable calculating the liability of TCS turnover”. Important to note
claims and money; and includes during F.Y. 2020-21. that while calculating the limit
stock and shares, growing 5. Further as clarified by CBDT of Rs. 10 Crore, sale of goods
crops, grass, and things dated 29.09.2020 & Press as well as sale of services,
attached to or forming part of Release dated 30.09.2020 both should be considered.
the land which are agreed to clarifying doubts on new TCS Therefore we may conclude
be severed before sale or under on Sale of Goods under section that while calculating the
the contract of sale; & hence 206C (1H), TCS liability limit of Rs. 50 lakhs, sale of
sale of immovable properties would arise even on the amount goods only is required to be
will not be covered under this received on or after 01.10.2020, considered. However while
provisions. Therefore for levy in respect of sales transactions calculating the limit of Rs. 10
of TCS, firstly there must be carried out before 01.10.2020. crore, to become an eligible
sale of GOODS. Therefore, we may conclude seller, total sales of goods and
2. The said TCS provisions are that if sale of goods made sales of services are required to
applicable only if sale of goods from 01.04.2020 to 30.09.2020 be considered.
to a particular buyer (PAN- would not be liable to TCS if its 10. In addition to the above, we
INDIA) exceeds Rs. 50 lakhs consideration has already been have to understand that the
during the P.Y. In short, the received before 01.10.2020. If word “total sales, gross receipts
limit is required to be calculated its consideration is received on or turnover” shall be inclusive
per buyer-wise & per year- or after 01.10.2020, it would of GST as clarified by CBDT
wise. It means sale of goods to be liable to TCS under this dated 29.09.2020. Further as
all the branches of a particular section. per section 145A of the Act, it
buyer (PAN-INDIA) shall be 6. We may further interpret that is to be considered as inclusive
taken in to consideration while the limit of Rs. 50 Lakhs will of GST. In addition to this, the
calculating the limit of Rs. 50 work as a standard deduction word used is “consideration”.
lakhs. per buyer as well as per annum. Therefore it has to be inclusive
3. Further to note that the above TCS liability would arise only of GST.
ceiling of Rs. 50 Lakhs is on the amount in excess of Rs. 11. One needs to collect TCS at
applicable only in respect 50 lakhs. the specified rate (0.075% till
of sale of GOODS. We 7. Seller means a person whose 31.03.2021 & thereafter 0.1%)
may understand that while total sales, gross receipts or at the time of RECEIPT of the
calculating the limit of Rs. 50 turnover from the business consideration on the amount
lakhs, sale of GOODS only carried on by him exceed Rs exceeding Rs. 50 lakhs. Under
shall be considered. Sale of 10 Crore rupees during the this section, the liability will get
services should be ignored financial year immediately triggered at the time of receipt
even while calculating the preceding the financial year of consideration. Therefore it is
limit of Rs. 50 lakhs. Further in which sale of goods is very difficult to have a complete
as discussed earlier, TCS carried out. Therefore we track in case of part payment,
liability shall not arise on may observe that applicability in case of merged payment for
sale of services. Therefore, at of this provisions needs to be goods & services, etc. For easy
applicability level (i.e. for limit examined on year to year basis. compliance, we may follow the
of Rs. 50 lakhs) & at the time of Further to note that this section invoice method.
charging TCS (i.e. for applying is not applicable to small sellers 12. Higher rate of 1% shall be
rate of TCS on amount of sale having turnover less than Rs. applicable if no PAN/ADHAR
in excess of the limit of Rs. 10 crore during the last year. is furnished by a buyer. No
50 lakhs), sale of services concession is provided due to
8. Very important to note that this
(provision of services) should Covid-19.
section would be applicable

TAXATION
13. The benefit to apply for Lower because the excess amount part payment received against
rate U/s. 197 of the Act, is not over and above the limit of various invoices.
available under this section. Rs. 50 lakhs is liable to TCS. B. Further charging of TCS on
Therefore the specified rate In this case, we have to raise the invoice will have a good
of 0.075% till 31.03.2021 a debit note for the amount of control from business entities
& thereafter 0.1% would be TCS (0.075% of Rs. 5,00,000). view point.
applicable. 5. There is a sale of goods to a C. Calculation of the limit of Rs.
14. Export of goods from India single party during a period 50 Lakhs becomes very easy.
is not covered under this from 01.04.2020 to 30.09.2020
D. Further it would be matched
section. The language used in for Rs. 55 lakhs & consideration
with 26AS & thereby
the section clearly reveals that is received before 01.10.2020
Government & business
deemed export (sale of goods is Rs. 52 lakhs & balance of
entities can have a good control
to SEZ units) would be liable Rs. 3 lakhs is received on or
over proper compliance & the
to TCS. after 01.10.2020: In this case,
very purpose of avoidance
TCS would be applicable on
of tax concealment behind
CASE STUDIES: the amount of Rs. 3 lakhs only
introduction of TCS on sale of
1. There is a sale of goods to a because the excess amount
goods can be achieved.
single party during a period over and above the limit of
from 01.04.2020 to 30.09.2020 Rs. 50 lakhs is liable to TCS E. If TCS is an invoice linked
for Rs. 49 lakhs & full & payment received before levy, then sale of goods can
consideration is also received 01.10.2020 is not liable to TCS be crossed tallied even with
before 01.10.2020: In this case, as clarified by CBDT dated GSTR-1 of the seller & GSTR-
TCS would not be applicable on 29.09.2020. 2A of the buyer after excluding
this amount because payment a standard limit of Rs. 50
6. There is a sale of goods to a
is received before 01.10.2020 Lakhs.
single party during a period
as clarified by CBDT dated from 01.04.2020 to 31.03.2021
29.09.2020 & Press Release CONCLUSION:
for Rs. 49 lakhs & consideration
dated 30.09.2020. is received before or after Introduction of this TCS provisions
2. There is a sale of goods 01.10.2020: In this case, TCS with very wider coverage and with
to a single party during a would not be applicable on very lower rate seems to act as a
period from 01.04.2020 to this amount because TCS weapon of good internal control
30.09.2020 for Rs. 49 lakhs & would not be applicable on this system, rather than as a weapon to
full consideration is received amount because the limit of Rs. collect tax on accrual basis at early
on or after 01.10.2020: In 50 lakhs is not crossed during stage. The legislative intention is very
this case also, TCS would not the financial year 2020-21. clear & wider with the introduction of
be applicable on this amount TCS across sale of all types of goods.
7. There is a sale of goods
because the limit of Rs. 50 It further gives a signal that it may
to a single party during a
lakhs is not crossed. (Press work as a better tool for collection of
period from 01.04.2020 to
Release dated 30.09.2020). tax at early stage in days to come.
31.03.2021 for Rs. 55 lakhs &
3. There is a sale of goods consideration of atleast Rs. 5
REFERENCES:
to a single party during a lakh received after 01.10.2020:
period from 01.04.2020 to In this case, TCS would be 1. https://www.incometaxindia.
30.09.2020 for Rs. 51 lakhs & applicable on the amount of Rs. gov.in/Pages/acts/income-tax-
consideration is also received 5 lakhs only because the excess act.aspx
before 01.10.2020: In this case, amount over and above the 2. https://www.taxmann.com/
TCS would not be applicable on limit of Rs. 50 lakhs is liable bookstore/professional/bare-
this amount because payment to TCS. In this case, we have acts-tax-laws.aspx
is received before 01.10.2020 to raise a debit note/invoice for 3. https://taxguru.in/income-tax/
as clarified by CBDT dated the amount of TCS (0.075% of section-206c1h-income-tax-
29.09.2020. Rs. 5,00,000). act-1961-tcs-traders.html
4. There is a sale of goods 4. https://icmai.in/
to a single party during a SUGEESTIONS:
5. http://www.icai.org.in/
period from 01.04.2020 to The said provisions should be
30.09.2020 for Rs. 55 lakhs & linked with date of invoice, rather than
consideration is received on or date of receipt of consideration for the
after 01.10.2020: In this case, following reasons: [email protected]
TCS would be applicable on A. Business entities can avoid the
the amount of Rs. 5 lakhs only detailed working in case of

FINANCE
ROLE OF FINANCIAL
CONCURRENCE IN
PUBLIC SECTOR
UNDERTAKINGS (PSUs)
CMA Gurunadha Rao Nerella

Accounts Officer
National Fertilizers Limited
Hyderabad
Abstract
There are different departments in Public Sector Undertakings (PSUs), but Finance
Department plays a very key role and its finance/accounting functions, ensures that the
procedures, rules and regulations are followed in line with the processes and defined government
guidelines. In an organization, finance department has number of wings or branches to take
care of all activities such as establishments, billings, payments, taxation, commercial etc.
along with one of the important activities is concurring the proposals received from various
department of the organization. In a public sector undertaking, a separate department exists
named as Finance Concurrence Department (FCD). We need to understand here the meaning
of financial concurrence and the role of FCD.
The objective of financial concurrencies is to protect financial interest in decision making
while ensuring financial propriety as a part of internal control system. The internal control is
exercised through the vetting and concurrence by finance department so that decision making
is in accordance to the policies, guidelines, rules, regulations, provision of budgets etc. and to
ensure the decision is beneficial to the company.
I
Introduction to Public Sector Undertaking: undertakings (PSUs) – that took the onus of making India
n 1954, while inaugurating the Bhakra Nangal self – sufficient.
dam, the then Prime Minster Jawahar Lal Nehru Before independence participation of public sector
christened it as the “temple of modern India” and undertakings in economic development of the country was
so were born Nehru’s “temples” – public sector almost nil. The Railways, Posts and Telegraphs, Aircraft,

FINANCE
Port Trusts, Ordinance factories were the only undertakings the settings up of public undertakings.
under government control. Public sector undertakings play a dominate role at present.
It was only after Industrial Policy of 1956 that public These undertakings include departmental enterprises,
sector undertakings got a fillip and the socialistic pattern of financial institutions and non-departmental enterprises or
development adopted by the government also encouraged government companies.
It was in 1948 that India got its first PSU in the form thereby helping in mobilization of funds to meet financing
of ITI (Indian Telephone Industries Ltd). There has needs for planned development of the country.
been appreciable growth in investment in Public Sector
Enterprises (PSEs) over the years. In 1951, there were only Financial Concurrence:
5 public sector enterprises with an investment of Rs. Objective of the study:
29 crores which has increased to 348. These enterprises 1. To identify best practices for financial concurrence &
represent total investment of Rs. 16,40,628 cr. as on 31st vetting in order to reduce lead – time.
March,2019 and paid up capital as on 31st March, 2019
2. To understand the need of financial concurrence.
stands at Rs. 2,75,697.00 cr. CPSEs have earned revenue
of Rs. 25,43,370 cr. during financial year 2018-19 in the 3. To study the delegation of powers as applicable to
different core sectors: Steel, Mining, Non-Ferrous Metals, the executives of the company & related process of
Power, Fertilizers, Refineries, Petro Chemicals, Machine financial concurrence.
Tools, Shipping, Paper, Cement, Sugar, Construction and
etc. These CPSEs are administered by the Ministry of Financial concurrence – to examine the proposal from
Heavy Industries and Public Enterprises. the financial point of view. Financial Concurrence is done by
keeping in mind the cannons of financial proprietary.
These CPSEs are further classified in to Maharatna,
Navrathna, Minisrathna Category – I and Minirathna If the Finance department does not agree or is not
Category – II. in concurrence with any proposal received from any
department, it specifies the reasons thereof and if it agrees
The PSEs have also been making substantial contribution
(with some reservation), it puts the comments along with
to augment the resources of Central Government though
the suggestions to be followed by the concerned executing
payment of dividend, interest, corporate taxes GST and etc.,
department.
Work Steps:
Process Flow Chart of Estimate Vetting & Financial Concurrence:

FINANCE
Following matters Requiring Financial concurrence:
Proposed expenditure as per
1. Budget: Budgets
2 approved budget or not, approval if
~~ Capital & Revenue Budget approval
required to be obtained.
~~ Re-Appropriation of Capital & Revenue Budget
Process as per requirement being
2. Capital Investment: 3 Tendering
followed or not.
~~ Proposal for Capital Investments in new schemes
& Revised Capital Cost of the approved schemes. In case of repetitive procurements
Standardization of items, process of rate contract
3. Works, Purchases & Sales 4
/ R/C or standardization followed or not.
~~ Estimates for works/ Purchases. Specific approval required.
~~ Evaluation and acceptance of tenders including
commercial terms & conditions. Basis, supporting documents,
~~ Issue of works / Purchase orders 5 Estimated Cost correctness either of lump sum
~~ Negotiation with tenderers regarding price and amount or unit rates.
/ or the terms and conditions of the contract
(subject to CVC guidelines/clarifications). 6 DOP Proposal to be strictly as per DOP.
4. Claims, Write offs & Waives. Reasons for negotiation fulfilment

Negotiation and
~~ Referring disputes for arbitration or initiating 7
award
of guidelines issued and award to
court cases. be placed as per approval.
~~ Settlement of disputed claims outside the court
of law Finance Concurrence in Handling and Transportation
~~ Grant of compensation to any party (excludes Contract:
statutory requirements)
~~ All write off of losses, book debts, claims,
recoverable and advances. Sl. No. Activity Finance Concurrent to Examine
5. Personnel: Indents and

Requirements along with criteria
1 of Urgency from Area Office and
~~ Proposals involving variations with reference Approval
approval as per DOP.
to the existing wages structure, emoluments,
perquisites and service rules including Proposed expenditure as per
negotiations with Unions on such matters. Budgets
2 approved budget or not, approval if
~~ Sanction of receivable advance to employees in approval
required to be obtained.
excess of budget provisions.
~~ Payments of employees in respect of matters Process as per requirement being
not covered by specific rules including ex-gratia 3 Tendering
followed or not. If followed
payment. tender process giving to paper
advertisement.
6. General:
Standardization In case of repetitive works,
~~ Expenditure on publicity schemes 4
/ R/C standardization process will follow.
~~ Contribution to external agencies
~~ Hiring of office accommodation, plant & Basis, supporting documents,
machinery etc. 5 Estimated Cost correctness either of lump sum
~~ Advance payment to outsiders with or without amount or unit rates.
security.
~~ Disposal of materials – surplus or otherwise. 6 DOP Proposal to be strictly as per DOP.
Some Financial concurrence events in Finance Reasons for negotiation fulfilment

Department: Negotiation and
7 of guidelines issued and award to
award
Finance Concurrence in Procurement Proposal: be placed as per approval.
Sl. No. Activity Finance Concurrent to Examine Kindly note that the DOP shall be approved by the
Chairman and Managing Director from time to time keeping
Indents and Requirements along with criteria of in view the requirement and functioning of the internal
1
Approval Urgency, approval as per DOP.
departments.
From the above, it can be seen that finance concurrence

FINANCE
department’s functions are: care of while approving the proposals.
~~ To ensure the compliance of systems, procedures Further it may be said that the recommendation given by
envisaged in the contract/procurement policy. the FCD in the proposals are tools for the internal audit for
~~ To strictly adhere to delegation of power of the their detailed examination.
company.
Conclusions:
~~ To see the financial correctness, and
In order to avoid duplication of jobs the following shall
~~ To see any impropriety in the proposal.
not be within the scope of financial concurrence and the
project initiating department / agency shall be wholly
However, FCD does not put any break in the working of
responsible for:
the organization, rather suggest for smooth working and
proper compliance in case of any deviations. Sometimes, 1. Arithmetical accuracy of all calculations indicated in
the finance concurrence is correlated with internal audit or the proposals.
government audit. 2. Factual accuracy of technical analysis and
But it may be noted that the functions are not exactly the assumptions thereof as indicated in the proposal.
same for all these departments. There may be a few similarities 3. Factual accuracy of technical, statutory requirements
in the functions but the activities as well as objectives of all and their compliance like explosive rules, factory act,
these departments are different and independent. Environmental acts, various safety rules.
4. To give technical support to FCD wherever needed.
Importance of Financial concurrence:
5. The management to assure that FCD holds monthly
Financial concurrence department should not be given interactive meetings to be consistent in all similar
less importance in an organization. Even appointment of an type of proposals.
officer in this department requires due diligence.
Pressure always remains on this department since the References:
office has to ensure that procedures, polices of the company 1. Annual Reports of Ministry of Heavy Industries and
are being followed and proposals are made by the relevant Public Enterprises
department from propriety point of view in addition to
2. Theme from Study Note by CA N.K. Thukral – Role
financial correctness as well as with fair evaluation.
of Financial Concurrence.
This is inspecting of the fact that proposals cannot be
3. Policy guidelines of Financial Concurrence of
stopped, rather suggestions are to be forwarded to the
NEEPCO.
competent authority for further implementation. This is
the department which puts forward lacunas, if any and
recommends the options for the higher authorities to take [email protected]
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(Statutory Body under an Act of Parliament)
BANKING, FINANCIAL SERVICES AND INSURANCE COMMITTEE
ADMISSION
has started for the
2nd Batch of BFSI Courses.
Please login to the BFSI portal for further details.
The link is stated as follows:

https://icmai.in/Banking_Insurance/Courses.php
For details please call the department:
CMA Dibbendu Roy

Joint Director
9643443047/8368693781
CMA Rajendra Bose

Joint Director and HoD of BFSI Department
9007068555
Please email to [email protected] for any queries

START UP
INDIAN START-UPs:
ISSUES, CHALLENGES AND
OPPORTUNITIES
Thippeswami H Kasumurthy Poojitha

Research Scholar Assistant Professor
Department of Studies in Commerce Department of Studies in Commerce
Vijayanagara Sri Krishnadevaraya University SGRCM Government College Commerce and Management
Jnana Sagara, Ballari Ballari
Abstract
Increasing competition is one among the various factors that has led to the rise of self-
employment consciousness among the young generation in India. Over the recent years start
ups have become the flavor of season in Indian markets due to its tremendous population
which provides large potentiality of job markets in India towards job creation and promoting
entrepreneurship in India. For India’s transformation start ups, technology and innovations
act as effective instruments. Interestingly, every year more than 800 technology start ups are
being set up in India. By this 2020, it is estimated that around 11,500 tech-start ups are going
to be established with employment potential of around 250,000 technical people (NASSCOM,
2015). India is becoming a start up nation with the emergence of number of home grown start
ups across the country with business favorable environment. Today, India is amongst the top
five countries in the world in terms of start ups. Start up India is such an ambitious initiative
which is accelerating and revolutionizing start up movement in India. Self Employment and
Talent Utilization Fund (SETU) scheme acts as a major accelerator towards promoting start
ups in the country. However, as each coin has two sides, there are also various constraints
faced by the start up businessmen in India along with ample of opportunities. This Paper aims
to investigate the challenges and Opportunities in the way of start ups in India. This paper has
an intent to explore the major issues or difficulties faced by startups in India, and discuss the
various opportunities of start ups in India by using a literature-based analysis.

START UP
S
Introduction period. They mention about ample Globalization as key factor in the Indian
tart-ups are pillars of of problems of Indian start-ups and Economy. Author discusses about a
Economic Growth the need to promote it in both urban start-up ecosystem – its elements and
involving innovation and rural areas. This paper speaks demographic information. Kaur gives
with Technology which about various schemes implemented vivid explanation regarding Indian
strengthens the economic benefits for by different organizations and start-up business challenges such
the Economy. Existing frameworks institutions. Creation of Self- Help as critical Government clearances,
in India are inadequate to fulfill the Groups forms main part. The concept perplexity and expending huge time
aspirations of its population and of Start-ups and Start-up revolution is in making assesses installments to the
become a Global Power. Start-ups discussed along with the latest policy Government due to different taxes,
and Entrepreneurship has a key role initiatives for start-ups introduces absence of mentorship and legal
to play in making a country as a by the Government of India like direction, particularly about rewards
Knowledge Super power. Number of MUDRA, SETU, AIM, Digital India and hazards etc and it also explores
factors drive Indian start-up ecosystem etc. This paper concludes that these various opportunities in start-ups
such as huge funding, advancement in initiatives created start-up ecosystem keeping youth in major place who are
technology, demographic transition and thus increased the scope of self- responsible for transforming India into
etc which paves the way to young employment. 3Mukti Narayan Pidiha a super power. Finally it concludes
start-ups. The Digital revolution in and Rachana Singh (2016) highlight with the remarks that new start-ups are
India along with the start-up evolution the challenges and prospects of start- contracting in recent years for which
is important in transforming India. up India, stand-up India. It begins with funding acts as a major concern along
India in recent years has become the concept of Entrepreneur and its with above mentioned issues which are
the major technology hotbed which roots. They showcase the challenges to be taken care by the Government.
offers fascinating opportunities for for Indians in starting new business 6
Manu Tyagi and Namita Mishra
emerging companies to thrive and such as Financial and social challenges (2019) defines about start-up venture
establish themselves in the world with etc. They also discussed about the and gives brief note about origin of
their Innovative ideas and Disruptive future prospects of Entrepreneurship start-up initiatives by Government and
approaches. in India with the intervention of the current scenario about start-ups in
central, state governments and India which constitute Engineering
Review of Literature large companies. Plan of Action are start-ups as major one in technology
presented from the point of view of based start-ups. They speak about
1
Surabhi Jain (2016) aimed at
Government such as training and various issues and challenges of start-
the growth and prospects of start-up
development, media campaigns, ups and opportunities for start-up
ecosystem in India. While beginning
promoting rural entrepreneurship, in India like population, mindset in
with critical analysis of the concept of
improving infrastructure, monitoring working class and huge investments
a start-up. This article speaks about the
mechanism etc. The conclusive in start-ups.
launch of start-ups initiatives in India,
part highlights about economic Indian Market has predicted the
need for start-up ecosystems in India
contribution of entrepreneurship supremacy for startups exceptionally
and various action plans formulated
and country’s economic policy for in online retailing as well as service
for start-up India in 2016 like funding
its economic growth. 4Mohammed industry in 2016. Furthermore, it is
support, tax holidays, building
Habeebuddin and D. Sakriya (2017) forecasted that there will be over
innovation centers, research parks etc.
highlights the issues and challenges 11,500 startups by 2020 which will
In the conclusive part Jain opined that
for Indian start-ups and also discloses alter the way markets are functioning
innovation plays an important role in
various benefits available to the start- presently. Besides, the environment
start-up ecosystem as well as massive
ups and opportunities like Indian in India is favorable for great accord
industrialization which are in turn
demography, unique set of Indian of entrepreneurship opportunity for
results in expanding per capita income
Problems like health, education, starting own ventures. Today, India
of a country. It speaks about problems
sanitation, infrastructure etc for stands at fourth position in providing
faced by Indian. In order to avoid
Indian start-ups because of their startup ecosystem followed by USA,
this situation, government, Corporate
enormous transformation. Ample of UK and Israel.
and educational institutions have a
challenges identified for Indian start-
role to play like mentor programmes,
ups in this paper are regarding culture, Statement of the Problem
workshops, seminars etc. 2Sunita
mentorship, policies, hiring, funding,
Sanghi and A. Srija (2016) discuss The above literature points out
social issues, consumer behavior
about demographic transition of India the fact that studies have been made
changes, technological infrastructure
and contradiction of workplace in the on Indian startups like problems and
issues, sustainability issues,
structural transition and highlights consequences faced by the Indians
regulatory issues, taxation issues etc.
about importance of Self-Employment. on account of starting new business.
5
Kamaldeep Kaur (2017) explores
They investigated the roots of Most of the studies focused on
the opportunities and investigates
Entrepreneurship in India since pre- programmes, procedures etc. Since
the challenges of Indian Start-ups by
independence and post-independence there is no studies has not been done

START UP
so far, on exactness of challenges to intellectual property rights, involvement of Government.
faced by the businessmen and what labor laws etc. business are In India, People prefer
are opportunities are exist in India. rigorous in India which takes Government jobs over private
In this article we try to find out about 30 days to comply jobs because of Job security
issues, challenges and what do the compared to just 9 days in but in recent days several
opportunities (government initiatives) OECD countries. Also as per multinational companies
exist for Indian aspirants. Hence, the World Bank report, “world influenced the people greatly
study is undertaken to fill the research bank ease of doing business” with their high pay scales and
gap. India ranks 142 out of 189 good perquisites. Globalization
economies (Mittal, 2014) was one among the various
Objectives of the Study 4)
Lack of Guidance/ factors that influenced the rise
1. To identify the issues and Mentorship of entrepreneurship in India
challenges faced by Indian because of which economy is
Lack of adequate guidance/
start-ups. going through enhancement of
mentorship is the bigger
start-ups and their contribution
2. To analyze the opportunities challenge which could bring
to the economy.
for Indian start-ups a potentially good idea to an
end. Lack of proper guidance
1) India’s Population has
Research Methodology that exist in the Indian startup
Unfolded new Doorways
The study is mainly based on ecosystem. Most of the startups
have excellent ideas, products, Indian Population can be
secondary data and descriptive in
but brilliant idea works only described as the gigantic asset
nature. Hence, the study has been
if executed promptly and because by 2020 it is intended
carried out by referring various journal
properly. that country will encounter
articles, newspapers and websites.etc
a period of “Demographic
5)
Expectations of the
Dividend” in which non-
~~ Major Issues and Challenges Customers
working population would
for Startups Indian startups come up with be excelled by the working
a service to be able to match population as a result of which
1) Lack of Financial Assistance up customers expectations. substantial moment will be
Availability of finance is critical Innovations play a pertinent offered to an organization or
for startups and is always role in Indian startups. Since a firm exasperating to become
a problem to get sufficient that the startup has to fine tune victorious and generate
amounts. A numerous options the product offerings to suit commanding position in the
ranging from loans, etc. the the market demands. Also, the Indian Market. The budding and
requirement of more cash starts entrepreneur should have deep cluttered stage of infrastructure
increasing as the business domain knowledge to counter in India has been identified
progress. Proper finance competition with appropriate by the entrepreneurs that is
management is critical for the strategies or executed plans. giving a gigantic opportunity
successful of startups in India. Due to new technologies that to attempt to digitize collocate
2) Lack of Supporting are emerging the challenge various segments.
Infrastructure to provide over and above an
2) Many Students opt for
earlier innovation is pertinent.
Infrastructure is also required Entrepreneurship
for good startups. There are The talented students recruiting
~~ Opportunities for Indian
number of support mechanisms trend in IITs and IIMs always
Start-ups
that play a significant role in makes a buzz because of the
beginning of startups. Lack India is at a pace to become
higher packages offered to
of access to such supporting Start-up Nation with the launch
them. These students either get
infrastructure mechanisms of Start-up India initiative on
placed in the startup or choose
increase the more risks in 16th January 2016 in New Delhi
for campus recruitment itself,
startups in India. by the Prime Minister Shri
due to their increasing interest
Narendra Damodardas Modi.
3) Changes in Government to initiate their new ventures.
Many factors have gathered for
Policies 3) Talent is Willing to work with
promoting start-ups and enable
Starting a business require a them to flourish globally in Startups
number of permissions from the recent decade and they Many talented people are
the concerned governments witnessed enormous growth coming forward to work with
departments. It is still big task in spite of several challenges Startups having challenging
to register a business or new faced by young entrepreneurs works, big funding which
entity. Regulations pertaining which can be eliminated by gives great packages thus

START UP
breaking traditional career 1. Make in India Initiative in which Rs. 1,000 crore
paths making startups a very Make in India by has been allotted to create
attractive profitable place. Government includes major opportunities for self-
Progressively, a tendency is new initiatives designed employment and fresh
observed where many middle to facilitate investment, jobs mainly in technology-
level officials are quitting foster innovation, protect driven domains. The aim of
their jobs at big corporations intellectual property and build this program was to create
to work in startups. Even best-in-class manufacturing 100000 job opportunities
ample of startups are taking infrastructure. This has also across the country through
bold steps to captivate best helped to ease the process startups.
talent in the world. A survey of starting a business and 5. E- biz Portal
by Economic times stated that doing everything hassle free It integrates 14 regulatory
students joining startups and by not only encouraging permissions and licenses at
e-commerce businesses have manufacturers, but also one source. It is launched by
increased extensively. Indian buyers to invest and the Government to reduce
4) Huge Investments in Startups trust in Domestic Brands. difficulties in setting up new
by Indian and Foreign 2. MUDRA Yojana businesses. This portal usage
Investors enables faster clearances and
Generally small
Through huge investments entrepreneurs find it difficult improves the ease of doing
from Indian and foreign in getting finance to fund businesses in India.
investors, Startup ecosystem is their businesses as large 6. Royalty Tax
getting huge support to grow. collaterals will be asked by The then Finance Minister
In 2015, Indian startups have the banks for which they Mr. Arun Jaitley reduced
raised around Rs. 42,300 core become unsustainable. the Royalty tax payable
from investors with around Although, through this by businesses and startup
more than 300 deals. The top scheme small entrepreneurs firms from 25% to 10%
Foreign investor in India is will easily get loans to set with an aim to make cost o
New York-based Tiger Global up, grow and stabilize their technology more affordable
Management followed by businesses from banks. and accessible.
the Russian Company- DST
3. Atal Innovation Mission
Global, Japanese telecom
(AIM) 7) Patent benefits
giant Softbank, Kalaari capital,
Sequoia capital and Accel This was launched by the then Under the scheme for startups
Partners. Finance Minister of India intellectual property protection,
Mr. Arun Jaitley during the patent applicants have received
5) Funding for Startups by the
budget 2015 and is set up by the benefits up to 80% rebate
Government
NITI Aayog which involves in patent fees and free legal
There are various government academicians, entrepreneurs assistance. Startups have also
and semi-government and researchers utilizing availed benefit of fees rebate
initiatives launched to help national and international in expedited examination filing
startups in performing and experience to promote fees(Form 18(A)), Trademark
sustaining in domestic as well a culture of Innovation rules 2017, has been recently
as Global market. The biggest and entrepreneurship in amended to provide 50%
courage and help for young the country and Research rebate in Trademarks filing fee
entrepreneurs in India is the and Development in India to startups. Overall more than
Funding by Government of particularly in technology 2,000 startup cases have been
India. oriented areas. Components facilitated under this scheme.
6) Startup India Initiative of AIM are Atal incubation 8) Learning and development
This initiative is launched by centres, Atal Tinkering module
the honorable Prime Minister Laboratories, Atal Grand
Startup India has launched
of India Shri. Narendra Modi challenge Awards and Scale
on interactive online learning
which provides a great comfort up support to established
and development module to
and assistance and break from incubation centres.
educate startups and aspiring
traditional License Raj of India 4. Self Employment Talent entrepreneurs. Over more
and includes 3 years tax and Utilization Fund (SETU) than 2, 30,000 applicants
compliance breaks proposed This is launched by NITI have signed up for the
to eliminate burdensome Aayog in 2015 to facilitate course, out of which more
government regulations and the growth of startup firms than 10,000 applicants have
red tapism.

START UP
completed 100% of the course more opportunities to overcome the Ms. Rachana Singh (2016),
successfully. challenges and problems faced by Challenges and Prospects
9) Startup India Yatra the Indian entrepreneurs through of Start-up India, Stand-up
effective startup plans. The study India – An Entrepreneurship
The startup India Yatra is a
finally concludes that the Government Program, National Seminar on
platform which aims to help
through this initiative aims to empower Entrepreneurship Development
entrepreneurs (especially
start ups to grow through innovation – Economic and Social Issue,
from non-metropolitan cities)
and design and accelerate spreading of February, pp 237-244.
realizes their startup dream.
the startup movement. 6. Manu Tyagi and Namita
The startup India yatra aims to
reach each and every district of Mishra (2019), Start-up Policy
References – New Day, New Fate, An
the country so far, startup India
yatra has been conducted 12 1. Kamaldeep Kaur (2017), International Peer-reviewed
states of India. Start-Up India: Challenges Open Access Journal of
and Opportunities, Journal Interdisciplinary Studies,
10) Startup India Hub
of Social Science Research, Special Issues on Start-up and
Startup india online Hub Volume 11, Number 1, March, Innovation, Volume 2, Issue 1,
was launched to serve as a pp 2318-2321. February, pp 143-148.
online platform where all the
2. Surabhi Jain (2016), Growth
stakeholders of the startup Websites
of Start-up Ecosystems in
ecosystem can collaborate and
India, International Journal 1. https://startupindia.gov.in
synergize their efforts. The
of Applied Research, Volume 2. https://yourstory.com
hub has handled more than 1,
2(12), pp 152-154.
14,000 queries from startup 3. https://www.
through telephone, E-mail and 3. Sunita Sanghi and A. Srija thehindubusinessline.com/
Twitters etc. (2016), Entrepreneurship infotech/india
Development in India – The
4. https://trak.in/india-startup-
Conclusion Focus on Start-ups, Special
funding-investment-2015/
Article, Laghu Udyog
Startups may be small corporations 5. https://www.startupindia.gov.
Samachar, January, pp 20-27.
but they can play a big role in in/content/sih/en/government-
economic growth and strength of the 4. Mohammed Habeebuddin and
schemes.html
nation. They create more employment D. Sakriya (2017), Start-ups in
India – Issues and Challenges, 6. https://www. dipp.gov.in
opportunities to unemployed
generations. Not only that, startups Emperor International Journal
can also contribute to economic of Finance and Management
dynamism by spurring innovation and Research, Mayas Publication,
[email protected]
injecting competition. The present pp 317-322.
[email protected]
study found that startups can avail 5. Mr. Mukti Narayan Pidiha and
OBITUARY
CMA C V Mathews aged 92 years passed away on 19th October 2020. He was
one of the founder member of ICAI-Trivandrum Chapter. He was the Secretary of
ICAI-Trivandrum Chapter during the pre-recognition period of 1969-70 and 1970-
71. He decorated the post of Chairman during 1976-77 and also held the post of
Secretary during the post recognition period of 1971-72, 1978-79, 1979-80 and
1981-82 terms. CMA C V Mathews was a man of integrity, honesty, dedication
and was the driving force behind the formation of ICAI-Trivandrum Chapter and
the contributions made by him towards the development of CMA Profession will
always be remembered. God let his soul rest in peace.

BANKING
IMPLEMENTING BALANCED
SCORECARD AS STRATEGIC
PERFORMANCE MEASUREMENT
AND MANAGEMENT TOOL IN
FINANCIAL SECTOR -
A STUDY OF PUBLIC SECTOR
BANKS IN INDIA
Abstract
The present study exhibits the

performance of 10 Public Sector Banks
Dr. Ashok Kumar Gupta in India on Balanced Scorecard and
Associate Professor (ABST)
Govt. Commerce College, Kota provides suggestions to achieve long
term sustainability, competitiveness and
profitability. To attain the said objective,
a Balanced Scorecard Model has been
developed with integrating social and
environment perspective. Data have been
collected through secondary sources and
Kruskal Wallis test has been applied to test
the hypothesis. It has been found that all
CMA (Dr.) Meenu Maheshwari public sectors banks have a declining trend
Assistant Professor
in their performance during the studied
Deptt. of Commerce and Management
University of Kota, Kota period and there is no significant difference
among all public sector banks on Balanced
Scorecard. To achieve the long term goals
of Sustainability, public sector banks should
adopt Balanced Scorecard as their strategic
performance and measurement system and
try to measure, analyse and improve their
performance on all key factors to success.
Sudarshana Sharma
Research Scholar - Govt. Commerce College Kota &
Assistant Professor - Finance, Amity Global Business School
Ahmedabad

BANKING
G
Introduction: have been evaluated. consecutive financial years
rowing criticism of from 2007-08 to 2016-17 have
financial measures Review of Literature: been selected.
alone in performance For identifying the research gap D. Data Collection: This paper is
measurement systems various studies, reports, research based on secondary data which
and increased importance of integrating papers, articles, conference have been primarily compiled
the intangible measures with financial proceedings etc. have been gone through annual reports,
ones has directed the development and through. Few are as follows: Annapurna sustainability reports and
modifications of different approaches & Manchala (2017) measured the Business responsibility reports
for performance measurement systems performance of ICICI, HDFC and Axis and publications from RBI.
of organizations. Contemporary bank on four perspective of Balanced E. Hypothesis of the Study:
performance measurement systems Scorecard and found a significant To draw conclusion on inter-
are aimed at evaluating the difference and suggested to improve bank performance, following
performance of organizations on key performance on each perspective hypothesis has been framed:
strategic operational areas of success to improve overall performance.
H0- There is no significant
combining both financial and non- Kasasbeh (2018) explored that
difference in the Overall
financial aspects. These systems 30.7% Jordanian Commercial Banks
Performance among Public
help in detecting the critical areas of were the full implementer of BSC
Sector Banks.
improvement for enhancing overall and identified problems like lack of
performance. In banking sector, support of top management, different F. Balanced Scorecard Model
intangible factors like satisfied and organization culture, technical issues, Used: A Balanced Scorecard
delighted customers, quality services, political issues, and conceptual Model has been developed
innovative high-tech products and issues etc. which are associated with to measure the performance
services, operational excellency, implementation of BSC. Nnamseh & of banks by keeping in view
intellectual capital, employee Umoh (2019) found that Customer & the basic model given by
satisfaction etc. play strategic role in Internal Business Process Perspective Kaplan and Norton, the
achieving success. Measuring their had a significant impact on Bank’s common strategic objectives
performance on financial aspects performance in Nigeria so banks of banks in India, perspectives
is not sufficient, appropriate and should adopt a BSC model to measure, and measures introduced in
reliable. It is inevitable to implement manage & report their performance in previous studies in banking
a comprehensive performance order to improve competitive position. sector etc. For this thorough
measurement tool to evaluate Turshan and Karim (2020) recognized review of available literature
and improve the performance of that BSC model helped in improving and vision & mission
banks so that a true picture of their performance of banks in Palestine so statements of Indian Banks
performance can be revealed and they suggested to implement BSC as and their objectives have been
it can help them to achieve their an integrated strategic performance done.
long term goals of sustainability, management system. G. Scoring, Ranking and
profitability and competitiveness. A Grading of Performance of
tool propagated by Kaplan and Norton Research Methodology: Banks on Balanced Scorecard
in 1992 named Balanced Scorecard A. Objectives of the Study: - Scores for each measure
is a significant strategic performance To examine and compare the under each perspective
measurement and management overall performance of Public have been assigned on the
system which measures and manages Sector Banks in India using basis of performance scale.
the performance on key strategic Balanced Scorecard Model Maximum scores assigned
perspectives of Financial, Customers, and provide suggestions for to each perspective are 400
Internal Business processes and improvement in the overall i.e. 50 Score each measure X
Learning, Growth and Innovation performance of banks. 8 measures. Therefore total
Perspective. maximum score for overall
B. Sample Size: - 10 Public
This study is an initiative for Sector banks constitute the performance on BSC are 2000
evaluating the performance of sample of the study which i.e. 400 Score X 5 Perspectives.
Public Sector Banks in India using has been selected on highest Total scores gained by the
Balanced Scorecard. In this study market capitalization in BSE banks have been converted into
one more perspective i.e. Social and Sensex. percentage and graded on the
Environment Perspective has been basis of following Table:
C. Study Period: - To reveal the
incorporated alongwith the four
trend in performance of banks
perspectives of Balanced Scorecard
over a longer time period, 10
and then the performance of banks

BANKING
Scores (In Percentage) Grade been applied using IBM SPSS22.

More than 80% Excellent J. Limitations of the Study:
More than 70% Very Good
1. The study is completely based on secondary
data.
More than 60% Good
2. Measures for which the information was not
More than 50% Satisfactory available have been excluded which might have
Less than 50% Poor affected the results of the study if incorporated.
3. The study is confined to public sector banks
H. Statistical Tools & Techniques: only.
Kruskal Wallis test under non-parametric test has
Data Analysis and Interpretation:

1.1 Inter-bank Comparison of Public Sector Banks on Balanced Scorecard
Table: 1 Performance Score of Public Sector Banks on Balanced Scorecard
Name of the 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- Average
Rank
Bank/Year 08 09 10 11 12 13 14 15 16 17 Score
State Bank
1000 1060 1000 1100 1230 1300 1300 1390 1460 1480 1232 1
of India
Bank of
860 940 1030 1110 1110 1120 1190 1130 1050 1200 1074 3
Baroda
Punjab
National 900 1020 1040 1170 1110 1120 1130 1120 1130 1190 1093 2
Bank
IDBI Bank 810 890 990 1020 990 910 890 1070 980 1020 957 8
Canara bank 750 990 1050 1110 990 1030 1180 1160 1120 1170 1055 4
Bank of
970 950 940 1050 940 1070 1130 1050 1070 1130 1030 5
India
Indian Bank 830 890 1010 980 990 940 1010 980 1000 1140 977 7
Central
Bank of 820 770 940 890 790 950 850 930 900 980 882 10
India
Union Bank 860 860 970 970 920 1080 1060 1070 1130 1150 1007 6
Syndicate
820 780 780 880 920 990 880 1060 940 980 903 9
Bank
Table 2: Mean Ranks and Results of Kruskal Wallis Test of Public Sector Banks
Null Hypothesis
Name of the Bank/Year N Mean Rank Chi-square Degree of Freedom p-value
Accepted/Rejected
SBI 10 81.7
BOB 10 64.7
PNB 10 70.35
IDBI 10 35
Canara bank 10 65.15
45.020 9 0.000 Rejected
BOI 10 54.35
Indian Bank 10 41.85
CBI 10 19
Union Bank 10 48.6
Syndicate Bank 10 24.4

BANKING
Major Findings: Above Tables 2. Highest performance score is Scorecard as the mean is the
display that the result of better performance lowest as 19.00 and 24.40
1. State Bank of India followed of these banks on different respectively as shown in Table
by Punjab National Bank and perspectives of Balanced 2. The overall performance
Canara Bank performed the Scorecard. score of these banks is lower
best on Balanced Scorecard as 2. Central Bank of India and than other public sector banks
the mean rank is the highest Syndicate Bank are the poor in almost each year as shown in
i.e. 81.7, 70.35 and 65.15 performers among all public Table 1.
respectively as shown in Table sector banks on Balanced
1.2 Grading and Ranking of Performance of Public Sector Banks on Balanced Scorecard
Table 3: Percentage of Overall Performance and Ranking of Public Sector Banks on Balanced Scorecard
Performance
Name of the Bank/ 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-
in Percentage / 2007-08
Year 09 10 11 12 13 14 15 16 17
Ranking
% 50 53 50 55 62 65 65 70 73 74
SBI
Rank 1 1 4 3 1 1 1 1 1 1
% 43 47 52 56 56 56 60 57 53 60
BOB
Rank 4 5 3 3 2 2 2 3 5 2
% 45 51 52 59 56 56 57 56 57 60
PNB
Rank 3 2 2 1 2 2 4 4 2 2
% 41 45 50 51 50 46 45 54 49 51
IDBI
Rank 6 6 4 5 3 8 7 5 7 6
% 38 50 53 56 50 52 59 58 56 59
Canara Bank
Rank 7 3 1 2 3 4 3 2 3 3
% 49 48 47 53 47 54 57 53 54 57
BOI
Rank 2 4 6 4 4 3 4 6 4 5
% 42 45 51 49 50 47 51 49 50 57
Indian Bank
Rank 6 6 3 6 3 7 6 7 6 5
% 41 39 47 45 40 48 43 47 45 49
CBI
Rank 6 9 6 7 6 6 9 8 9 7
% 43 43 49 49 46 54 53 54 57 58
Union Bank
Rank 5 7 5 6 5 3 5 5 2 4
% 41 39 39 44 46 50 44 53 47 49
Syndicate Bank
Rank 6 8 7 8 5 5 8 6 8 7
Table 4: Grading of Performance of Public Sector Banks on Balanced Scorecard

Name
of the 2007-
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Bank/ 08
Year
SBI Poor Satisfactory Poor Satisfactory Good Good Good Good Very Good Very Good
BOB Poor Poor Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

BANKING
PNB Poor Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
IDBI Poor Poor Poor Satisfactory Poor Poor Poor Satisfactory Poor Satisfactory
Canara
Poor Poor Satisfactory Satisfactory Poor Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
bank
BOI Poor Poor Poor Satisfactory Poor Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
Indian
Poor Poor Satisfactory Poor Poor Poor Satisfactory Poor Poor Satisfactory
Bank
CBI Poor Poor Poor Poor Poor Poor Poor Poor Poor Poor
Union
Poor Poor Poor Poor Poor Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
Bank
Syndicate
Poor Poor Poor Poor Poor Poor Poor Satisfactory Poor Poor
Bank
Major Findings: From the above result in improving the performance (2000). Having trouble with your
tables it can be seen that no public of banks on sustainability, profitability strategy? Then map it. Harvard
sector bank got excellent remark on and competitiveness in long run. Business review, 78(1), 167-176.
Balanced Scorecard. All Public Sector 6. Kasasbeh, I. (2018). Problems
Banks were remarked as either poor or This research paper is based on of Management Accounting
satisfactory in most of the years. State the ideas, concepts and research Implementation: The Case
Bank of India among Public sector methodology given in the doctoral of Balanced Scorecard
Implementation within Jordanian
banks was ranked on 1st position on thesis submitted to University
Commercial Banks. International
Balanced Scorecard in most of the of Kota, Kota (Raj.) entitled, Journal of Academic Research
years. “Application of Balanced Scorecard in Accounting, Finance and
in Measuring Performance of Management Sciences, 8(2),
Conclusion and Banks-A Comparative Study of 200-207.
Recommendations: Public and Private Sector Banks in 7. Nnamseh, M.P. and Umoh,
It can be concluded from the results India” by Sudarshana Sharma under V.A. (2019) Efficacy of Balance
of the study that Public Sector Banks the supervision of Dr. Ashok Kumar Scorecard on performance of
have a deteriorating trend in their Gupta. banks in Nigeria. European
overall performance on Balanced Journal of Business and
References: Management, 11(23), 33-40.
Scorecard. To make an organization
a “Sustainable Organization” and to 1. Annapurna V. and Manchala G. 8. Sharma, S. (2020). Application of
achieve long term financial success, a (Dr.) (2017). Performance of New Balanced Scorecard in Measuring
Generation Private Sector Banks Performance of Banks-A
strong Performance Measurement and
in India: A Balanced Scorecard Comparative Study of Public and
Management System is required in Private Sector Banks in India
Evaluation. International Journal
order to continuously measure, evaluate (Ph.D. Thesis submitted under the
of Current Engineering and
and monitor the performance on all Scientific Research.(IJCESR) supervision of Dr. Ashok Kumar
parameters so that corrective actions (Online), 4(5). Gupta). University of Kota, Kota,
can be taken on time. Public Sector India.
2. Annual Reports of Sampled
Banks should implement performance Banks from 2007-08 to 2016-17. 9. Turshan, M.N. and Karim, N.A.
measurement and management tool Retrieved from: Bank’s Websites. (2020). The effect of adopting
like Balanced Scorecard and focus 3. Kaplan, R.S. & Norton, D.P.
Balanced Scorecard (BSC)
on improving their performance as strategic planning tool on
(1992). The Balanced Scorecard –
on different measures of Customer financial performance of banks
Measures that Drive Performance.
Perspective, Internal Business Process operating in Palestine. Asian
Harvard Business Review, 70(1),
Perspective, Learning & Growth and 71- 79. Social Science, 16(1), 95-108.
Innovation Perspective and Social 4. Kaplan, R.S. & Norton, D.P.
and Environment Perspective. These (1996). Using the Balanced
perspectives are the drivers which Scorecard as a Strategic
[email protected]
lead to improvement in performance Management System. Harvard
on financial perspective. Improved Business Review, 74(1), 75-85. [email protected]
performance on all perspectives will 5. Kaplan, R.S. & Norton, D.P. [email protected]

BANKING
THE BEHAVIOUR OF BANK’S

LIQUIDITY IN THE LIGHT OF
FINANCIAL CRISIS
- A STUDY OF INDIAN
COMMERCIAL BANKS
Abstract
Balance Sheet of every bank gives the

real picture regarding its financial position
at any given point of time. Bank’s Liquidity
is said to be the capacity of a bank to
fund increase in assets and meet both
Anurag Banerjee expected as well as unexpected cash and
PhD. Scholar in Department of Commerce collateral obligations as they become due.
St. Xavier’s College (Autonomous), Kolkata
University of Calcutta To specify the factors that have significant
association in determining the variation in
bank’s liquidity and the behaviour of same
in accordance with any probable future
B
ank’s Liquidity is said to be the capacity of
financial crisis the following study has been
a bank to fund increase in assets and meet conducted with certain key bank specific
both expected as well as unexpected cash and variable and macroeconomic variables for
collateral obligations as they become due. The a sample of 60 Indian Commercial Banks
behaviour of every banking sector of the country is expected
to be largely dependent on the respective bank’s liquidity
for a sample period of 11 years using panel
criterion. To specify such movement in future given the data techniques. SIZE, CRAR, EFF, ROA,
present situation of economic slowdown due to ongoing OPDT, CER, NNPA are significant for
pandemic an effort has been made to develop a proto type the original model. CRAR and EFF are
model with the inclusion of the ‘crisis interaction term’
in the backdrop of the global financial crisis of 2007-08.
significant for the crisis interaction model.
This study is undertaken to magnify the effects of 3 crisis In this paper only the crisis interaction
interaction term deduced from the main model in reference model has been reported and given
to the Monetary Transmission Literature, to account for the preference.
variations in the bank’s liquidity behaviour.

BANKING
Introduction and Background: In another study Berger & Humphrey, (1997), surveyed
A well-functioning financial system helps in effective the 130 studies over 21 countries to examine the efficiency
channelization of funds to the profitable sectors thereby implications based on different criteria like the government
providing rooms for optimum utilisation of available policies, research and managerial performance. The present
resources to discharge the day to day activities to the study thus seeks to develop a prototype crisis interaction
consumers and also simultaneously to the weaker sections term and propose a model for probable movement of certain
of the society. Although the Indian economy has suffered bank specific and macro-economic variables in describing
various financial shocks on account of spiral effects of the causes of variation in the liquidity requirements of the
different global crisis events, the role of the Reserve Bank Indian Commercial Banks.
of India towards the making of a more resilient banking
environment with strict norms are in force since long. Be it Data and Methodology:
the introduction and implementation of the Capital to Risk The data for the study covers the time period from
Adjusted Ratio (BASEL III)1 or the analysis of the efficiency 2005-06 (to cover the financial crisis phase) till 2015-
criteria for the banks’ Reserve Bank of India has always been 2016 (pre-merger phase of the State Bank of India and its
in the forefront in improving and monitoring the banking Associates). The main variables for the development of the
system in India. Aside all, the efficiency or productivity crisis interaction term include CRAR, SIZE and Economic
measures could act as leading indicators for evolving Efficiency (EFF) of the Indian Commercial Banks. Initially
strengths or weaknesses of the banking system and could a 2 stage panel data modelling has been proposed here in 2
enable pre-emptive steps by the regulator when necessary. separate equations. As the data consists both cross section and
as we all know that the global financial crisis of 2007-08 time points the panel data techniques has been applied here
has been one of the causes of the bank’s illiquidity situation. where by the 2 popular work horses are the Fixed Effects and
Prior to the occurrence of the financial crisis the liquidity the Random Effects model as appropriated by the Hausman
risk for the banks were considered to be secondary in nature. Test. In the usual sense the Fixed Effects Model is usually
Shukla (2014) opined that the extraction of the investments preferred over the Random Effects, as the former gives more
from the financial system of India resulted in increase in the consistent results & are more robust as compared to the
liquidity pressure on the Indian economy. However, given later as the Fixed effects do not depend on the assumption
the present scenario of the global pandemic raging all around of that the individual error term (Ԑit) is not correlated with
the world the Indian Banking system might face certain the regressors. Further it is also assumed that the “Ԑ” or the
critical situation in the coming years. Thus, predicting the disturbance term is independent & identically distributed &
probable causes as regards to the future operative criteria in none of the variables of the model are stochastic. (Ԑit ~ iid=0,
case of the Indian Banking Sectors has always been an area δ2). Where, β1 to β9 are the coefficients of the independent
of interest for researchers. This study empirically seeks to variables & Ԑ are the error term. The panel model has been
bridge up this question of behaviour of certain key bank- constructed with the indices ‘i’ and‘t’ representing bank and
specific and macro-economic variables in interaction with year respectively. The proposed model is as follows:
probable financial crisis in the near future in reference to the
Monetary Transmission literature. LIQRit = αit + β1SIZEit+ β2CRARit + β3ROAit + β4 NNPAit
+ β5CERit + β6OPDTit + β7GDPit + β8INFLNit + β9Effit +
Motivation and Objectives: Ԑit……………. (i), and;
In a recently published report by the RBI (Reserve Bank
of India, 2020) it has been predicted that due to the stress LIQRit = αit + β1CS_SIZEit+ β2CS_CRARit + β3ROAit +
in the credit risk section the Gross NPA of the Scheduled β4 NNPAit + β5CERit + β6OPDTit + β7GDPit + β8INFLNit +
Commercial Banks will increase from 8.5% in March 2020 β9CS_Effit + Ԑit ………(ii) [Crisis Interaction Model]2
to 12.5% in March 2021, whereas the system level-1 capital
may fall from 14.6% in March 2020 to 13.3% in March Short description of the variables is as follows:
2021. Nair and Vinod., (2015), studied the determinants if Dependent Variable = Liquidity (LIQR); Liquid Assets
allocative efficiencies for the Indian Commercial Banking over Total Assets.
sector since the inception of 2nd phase of issuing banking Independent Variables:
licenses and found that the state owned banks are performing
better than the public, private and the foreign banks under a. Bank Specific:
the different efficiency parameters considered. Berger &
Capital Adequacy (CRAR); Capital to Risk
Humphrey, (1994), examined the effects of mergers in the
Adjusted Ratio (BASEL II).
banking sectors on a varies sample of the U.S bank’s cost and
profit functions and found that some mergers proved to be Bank Size (SIZE); Log of total Assets.
profitable while others lowered the efficiency of the banks. Profitability (ROA); Return on Assets.
1
Diversification Ratio (OPDT); Fraction of Non-
The implementation of the BASEL III with respect to the additional
Interest Income to Total Interest Income.
trance of 0.625% as regards to the countercyclical capital buffer had
been postponed till 30th September 2020.
2
(https://rbidocs.rbi.org.in/rdocs//PublicationReport/Pdfs/6FSRCHAP- The results of the CRISIS INTERACTION TERMS only have been
TER26952249FEDAA4019BC14F4FA93C89F2C.PDF) reported in this paper.

BANKING
Cost Efficiency Ratio (CER); Total Operating efficiency scores has been collected from the Reserve Bank
Expenses to Total Interest Income. of India statistical table and that of the macro-economic
Net Non-Performing Assets (NNPA); Gross NPA variables has been collected from CMIE-Economic Outlook.
minus Provisions.
Results and Discussion:
b. Macro-Economic: The following table shows the summarized results for the
Annual GDP growth rate (GDP). Crisis interaction Model post the regression exercise:
Inflation rate (INFLN) In the presence of the CRISIS Interaction term: for the year
Economic Efficiency scores (EFF). 2008
Variable Name Coefficient P-Value
In reference to the efficiency scores the Data Envelopment EFF x Crisis 08 -0.093641** 0.0427
Analysis technique has been used to estimate the efficient
CRAR x Crisis 08 0.004798* 0.0000
frontier in numerical terms through efficiency scores by
employing a desired bundle of Inputs and Outputs that SIZE x Crisis 08 0.003407 0.5747
the banks would have employed to produce a given level ***Significant at 1% or less than 1% level
of desired Output through an available amount possible **Significant at 5% level
input bundle with them within a given scale of production Accepted Model: FIXED EFFECTS MODEL.
approach. This is done by assuming the banks as Decision Hausman Test: 116.03845 with p-value of 0.0000.
Making Unit or DMU who is assumed to have a set of
R-square: 65.18.
alternative decisions to produce financial output. The
F-stat: 138.3438 (p-value = 0.0000)
optimisation function for deriving then efficiency scores is
DW-stat: 2.112
written as:
ρx = min θ
The second model that has been deduced as regards to the
effects of the Financial Crisis in the backdrop of the Global
financial crisis of 2007-09 (but the analysis has been done
for one year only to provide a hint into the future models
that can be further derived), for analysing the effects of
the crisis and its interactions with certain key specific
bank variables (with reference to the report on Efficiency,
Soundness & Productivity of Banking Sectors as per RBI),
gives the following indications (only the variables with the
crisis interactions has been reported in here). This model
has been run in accordance with the assumption of Ceteris-
Paribas4that reveals the following:
The presence of the crisis effect in the economy the
efficiency tends to have a negative impact on the bank’s
liquidity as regards to the fact that the bank in order to
The efficiency scores of the banks has been computed in maximize the scale of its normal operations is trying to reach
reference to the intermediation variant of the assets approach out more to achieve more than what is the standard level of
of the Sealey and Lindley (1977), with Labour; Deposits; output, with only a given level of input (As scale assumption
Fixed Assets and Borrowings as inputs and Investment and is input oriented CRS).
Advances as output assuming the Constant Returns to Scale The presence of the crisis in the economy if faced by the
in place.3 banking sector will tend to increase their liquidity base with
In the backdrop of the financial crisis dummy variables (1 regards to one unit increase in the bank’s capital cushion,
and 0) has been taken to magnify the effects of the financial that can be pointed out as a defensive move on the part of
crisis of 2008 on some key bank specific variables (based the banks ho try to protect their existing normal course of
on the Efficiency, Productivity and Soundness of Banking operations smoothly safeguarding themselves from the
Sector by RBI), where by the former refers to the fact that effect of crisis.
the banks faced the effects of financial crisis in 2008 while However, the effective power of the model is also good
otherwise it is 0. as re-confirmed by the F-Stat besides the R-square that tells
Data for the bank-specific variable and for computation of that the model is good enough to explain more than 50% of
3
The entire arrangement result of this methodology gives an efficiency the explained variations in the Liquidity ratio of the Banks
frontier line, whereby the DMUs operating on the frontier line are during the Crisis period.
considered as efficient compared to those operating below the efficien-
cy frontier line. The output-bundle of the firm may be treated as an 4
Only the interactions terms with respect to financial crisis has been
assigned task and the efficiency of the firm is judged by the maximum treated by simply multiplying the same for the year of crisis with that
equi-proportionate reduction in all of its inputs without compromising of the respective variable, keeping all other variables same either with
the feasibility of the target output. 1 or 0 as for the respective case may be.

BANKING
Conclusions and Policy Implications: 8. Berger, A. N., & Humphrey, D. B. (1994). Bank Scale
Economies, Mergers, Concentration And Efficiency. In The
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out at the effect of one of the major economic variables, 9. Berger, A. N., & Humphrey, D. B. (1997). Efficiency of
that is the economic efficiency. The robustness of the model financial institutions: International survey and directions
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risks in banking? Journal of Banking and Finance, 23(5),
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11. Blum, J., & Hellwig, M. (1995). The macroeconomic
their output for the increase in the performance of the entire implications of capital adequacy requirements for banks.
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able to keep more amount of Capital buffers over and above procyclicality? Economic Modelling, 29(4), 1035–1044.
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and Abhiman Das I. Introduction (No. 410020; NSE Working
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The selection of the sample size before the merger of the Vtyurina, S. (2012). The Determinants of Banks’ Liquidity
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the behaviour before merger so that there is ample scope 12, Issue 301). https://doi.org/10.5089/9781616356675.001
to extend the study in the near future with a comparison of 15. Dietrich, A., & Wanzenried, G. (2011). Determinants of bank
profitability before and during the crisis: Evidence from
post-merger scenario, thereby marking the limitation of this Switzerland. Journal of International Financial Markets,
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8754

ONLINE EDUCATION
PRESENT SCENARIO OF
‘ONLINE EDUCATION’
DURING COVID-19 PANDEMIC
Subhendu Kundu
Assistant Professor
Department of Commerce
Nabagram Hiralal Paul College, Hooghly
Abstract
The Covid-19 pandemic has shaken the earth from its core and has disrupted the entire activities
of all sectors including education sectors. Government of India has closed all educational
institution starting from school level to college- university level. E- learning system has taken
the place of conventional mode of education. For this purpose a questionnaire survey has been
made in Google Form to study the impact of ‘online education’ during this Covid-19 situation.
Total 153 responds have been received from students, teachers and guardian. Most of the
respondents are agreed that online education is really helpful during this pandemic situation.
Although there is a lot of limitation and constraints to adopt this digital form of learning.
C
Introduction around the world have decided to go complete lockdown
ovid 19 was first reported in Wuhan Municipal for few weeks in an attempt to contain the spread of the
area in China in December, 2019 but in that time COVID-19 pandemic. In India the Hon’ble Prime Minister
Wuhan Municipal Commission was reported Mr. Narendra Modi had declared a voluntary national curfew
this disease as a cluster of cases of pneumonia. named as ‘Janata Curfew’ for 14 hours on 22nd March, 2020
On 11th March, 2020 WHO declared Covid-19 as pandemic. and thereafter on 24th March, 2020, the Government of
The devastating and severe impact of COVID-19 has shaken India under Prime Minister Narendra Modi ordered 21 days
the world to its core. Further, most of the Governments nationwide lock down and extended it from time to time.

ONLINE EDUCATION
The government of India has closed all educational Respondents of school going students were 27 and students
institutions as a part of the nationwide lockdown, as a of higher studies were 60. If we consider the respondent
result learners ranging from school going children to gender wise, then 51% of total respondents were male and
postgraduate students, are affected. The UNESCO has also 49% were female. 51.6% respondents were living in urban
forecasted that about 32 crores students from school level area and 20.9% were resided in semi- urban area, whereas
to college, university levels are affected in India (Kasrekar only 20.9% respondents were living in rural area. For the
and Wadhavane, 2020). In this lock down situation digital purpose of this study different charts and bar diagram has
learning system has taken the place conventional mode been used as a tool for presenting the survey result.
of education but it is true that a only a handful of private
schools, a few colleges and universities have adopted online Impact of ‘Online Education’ during this Covid-19
digital learning system (Kasrekar and Wadhavane, 2020). situation
On the other hand a very few government and government During covid-19 pandemic all educational institutions in
aided school, colleges have started online education in our country are completely shut-down from third week of
a very unstructured manner because of not having proper March, 2020. During this time of crisis ‘online education’
e-learning software, fast internet, computer, laptop, mobile help the student to continue their study. It is true that only
etc to both teachers and students. Basically the students of a handful private schools and colleges have provided this
the rural area have missed opportunities of e-learning, not service to our students but majority of government and
only having the computer, smart phone, internet but also no government aided school and colleges are not in the position
longer have access to healthy meals during this time due to to start ‘online classes’ due to infrastructural, technical and
economic and social stress. motivational constraints. Another major constraint is the
availability of smart phone and internet connection as only
Objective of the study: 45 crore people of our total population of the country have
1. To study on the impact of ‘online education’ during access to the internet (Jana, 2020, p. 80).Although many
this Covid-19 situation. teachers of government school and colleges have started
2. To analysis the initiative taken by the educational ‘online classes’ by their own initiative. Government has also
institutions regarding online classes. taken initiative to broadcast higher class lectures of different
subjects on television. Different online platforms have
3. To analysis the opinions regarding online classes and
already started for higher studies, like, SWAYAM Course,
faculty development & knowledge development of
e-Pathshala, e- Shodh Sindhu, Shodhganga etc. which helps
teachers.
a lot for higher studies.
Research Methodology: Therefore, in this situation digital education comes into
the center stage of education in our country and near future
The study is based on primary data and data has been
digital education is likely to be integrated into mainstream
collected by conducting primary surveys with formatted
education. Learners from diverse geographical area of our
questionnaires among, teachers, guardians, and school
country can get access better learning facility which will
and college students. 23 and 24 questionnaires have been
enable inclusive education in near future.
prepared for school and college students respectively
whereas 19 questionnaires have been chosen for teachers In this new normal situation digital education is a complete
and 17 questionnaires have been selected for guardians. revolution in the field of education in our country. Interested
These questionnaires have been prepared in Google Forms students, teachers can contact with a world-class education,
and circulated through different social media in August, workshop, special lectures (in forms of webinar) which is
2020. Total number of respondents of this survey were 153, not easy to impart by the traditional methods of teaching-
out of total respondents 87 (i.e. 56.9%) were students, 52 learning environment.
were teachers (i.e. 34%) and 14 were guardians (i.e. 9.2%). Finding of this study has been discussed below.
The first question was regarding awareness of ‘Online Classes’ among the students community. The result is shown in
chart 1.
Chart 1.
Source: Online Survey

ONLINE EDUCATION
Observation:
From the above chart.1 it reveals that 92.6% school students and 96.7% students of higher education are aware of ‘Online
Classes’. It signifies that urban, semi-urban and rural students are known about this online education.
The second question was relating to Mode of teaching- i.e. classroom teaching or online teaching. This is shown in table 1.
Table. 1
Classroom
Online Teaching
Teaching
School Students 77.78 22.22
Students of Higher
83.33 16.67
Education
Guardian 71.4 28.6
Observation:
Most of the students i.e.,, 77.78% and 83.33% respondents of school and college students respectively are prefer to join
classroom teaching whereas 71.4% respondents of guardian are also support classroom teaching. Therefore, conventional
class room teaching has no other alternative.
The third question was that the online class is relevant and helpful for continuing study during this Lock Down Situation.
The observation of this question is shown in table 2a and 2b.
Table. 2a
Very much irrelevant Not Relevant Neutral Relevant Very Relevant
School Students 7.41 18.52 29.63 22.22 22.22
Students of Higher
5 6.67 40 26.67 21.67
Education
Table.2b
Yes No May be
Teachers 78.8 5.8 15.4
Guardian 85.7 - 14.3
Observation:
On analysis of the above table 2a and 2b, it is observed that 44.44 % and 48.34% respondents of school and college
students respectively are agreed that online classes are either relevant or very much relevant. Whereas 78.8% and 85.7%
respondents of teachers and guardians are thinking that online classes are helpful for continuing classes during this Lockdown
Situation. Most interesting is that about 30% school students and 40% students of higher education are neutral in this question.
Therefore, online classes are plays the role of substitute of conventional class room teaching.
The fourth question was relating to watching YouTube channel for educational purpose. The response relating to this
question is shown in table 3.
Table.3
Yes No
Students of Higher Education 83.33 16.67

ONLINE EDUCATION
Observation: learning programs. Many ed-tech firms have also take
From the above table 3 it is observed that 80.77% initiative to start e-learning classes. Some startups are
and 83.33% respondents of school and college students witnessing as high as 25% increase in e-learning courses
respectively are watching You Tube channel for educational (Kasrekar and Wadhavane, 2020). The Ministry of Human
purposes. Therefore, it can observed that majority of the Resource Development has already started a massive
students are familiar with online mode of education and they open online course (MOOC). In near future India will
use you tube for better understanding of their study. be the biggest market for MOOCs in the world after the
USA (Kasrekar and Wadhavane, 2020). As the majority of
The fifth question was specifically for the students of
our population is young, so, massive open online course
higher education relating to digital learning platform or apps
(MOOC) is said to open gateways for a lot of young aspiring
they have known about. This is shown in chart 4.
youth of our country.
The Government of India has also started some digital
Observation:
On analysis of the above chart it is observed that SWAYAM, Shodhganga, e-shodh Sindhu etc are not much familiar than
the private e-learning platforms. 51.67% students are known about BYJU’S one of the leading private e-learning education
provider. This is because of advertisement campaigning. Private e-education providers are basically focused on school level
education whereas SWAYAM, Shodhganga, e-shodh Sindhu etc are basically for the students of higher education, research
fellow etc.
The sixth question was relating to online Private tuition class which is shown in table 4 and chart 5.
Table.4
Yes No
Students of Higher education 43.33 56.67
Guardian 71.43 28.57
Observation:
It is observed from the above table and chart that school students and guardians have express their positive opinion regarding
online private tuition whereas 56.67% students of higher education are not opting online tuition during this lockdown time.
Initiative taken by the educational institutions regarding online classes

At this moment all educational institutions have totally closed and many institutions have started online classes in formal or
informal structure. So certain questionnaires have been framed to know about the institutional initiative in this regard.

ONLINE EDUCATION
The first question in this part to know about the possession of Learning Management System (LMS).
Table 5.
Yes No Don’t Know
School Students 26.92 26.92 46.15
Students of Higher
36.67 18.33 45.00
Education
Teachers 42.3 42.3 15.4
Observation:
From the above table 5, it is shown that 46.15% and 45% students of school and colleges are not aware of Learning
Management System of their institution. Whereas 42.3% teachers are agreed that their institution have their proper Learning
Management System and 42.3% teachers also pointed out that their institution have not provided any LMS.
The second question was institutional initiative regarding ‘Online classes’ during this Lock Down situation.
Chart.7
Observation:
From the above Chart 7 it found that 92.59% and 96.67% respondents of school and college students are agreed that institution
have taken initiative to conducting online classes in a formal or informal structure which helps the students’ community to
continue their study. Similarly 94.2% teachers are also agreed in this question. Many of them are taking interactive classes and
uploading notes / e-content in their institutional website. In this blended learning environment, interaction between teacher
and students become more flexible and basically learners play the central role (Nguyen, 2017, p. 175).
The third question was relating to structured routine for ‘Online classes’.
Chart.8

ONLINE EDUCATION
Observation:
From the above chart 8, it shows that 66.67% and 55% respondents of school and higher education are agreed that the fixed
routine has been followed by their institutions. Therefore, it can be said that online class has considered as an alternative
mode of education by the institution.
The fourth question was regarding regular attendance of ‘Online classes’ as per routine.
Table. 6
Yes No
Students of Higher Education 81.67 18.33
Observation:
It is observed from the table 6 that about 82% respondents of students, both school and higher education are interested to
attend online classes. This is really a very good indication relating to this alternative mode of education.
The fifth question was specifically for teacher community regarding taking of regular classes.
Table.7
%
Yes 67.3
No 3.8
No Fixed Schedule 26.9
No classes due to exam 1.9
Observation:
On analysis of the above table 7 and chart, it can be said that 67.3% teachers are taking online classes as per schedule routine
but 26.9% teachers are taking classes without proper routine because they are taking classes generously as their institution has
not taken any initiative for online classes. In this situation it is the common responsibility for educators to assist in students’
learning with teaching methods, teaching materials, and diversified teaching media with more efficient and interesting manner
which helps students to accept gladly (Lin et al., 2017, p. 3560).
The sixth question was regarding institutional arrangement of any training program for teacher relating to ‘online classes’.
Table.8
%
Yes 32.7
No 48.1
Own interest 19.2
Observation:
It is observed from the above table 8 and chart that 48.1% teachers were agreed that no formal training relating to online
classes had arranged by the institution and those who are tech savvy they were adopting technology of digital learning by their
own interest and 19.2% teachers have agreed in this regard. But it is true that formal training is necessary for taking online
classes for majority of the teachers.

ONLINE EDUCATION
Opinion survey regarding online classes and faculty development & knowledge development of teachers
The opinion survey regarding attendance, interest and feedback of the students relating to online classes.
Table.8
Extremely Poor Poor Average Good Appreciating
Students’ Attendance 19.23 55.77 13.46 11.54
Teachers’ Interest on online classes 5.77 61.54 19.23 13.46
Students feedback regarding
3.85 11.54 50.00 21.15 13.46
online classes
Observation: Participation of teachers in Online Faculty Development

a) 55.77% teachers express average opinion regarding Program (FDP), Short-Term Courses (STC) for their
student’s attendance, i.e., students’ interest on online career advancement.
classes is moderate because online classes are optional
mostly for government and government aided school
and colleges.
b) Teacher’s interest relating to online classes is also
average, 60.54% teachers are putting this option this
is because of lack of technological concept.
c) Similarly, students feedback regarding class,
understandability of class etc are also average, 50%
teachers opinioned in this regard.
Teachers/ faculty participation in Webinar/ Workshop

during this lockdown situation.
Chart 12. Observation:

It is observed that 53.8% respondents of teachers have
attended different Online Faculty Development Program
(FDP), Short-Term Courses (STC) for their career
advancement which is really helpful for them. University
Grants Commission (UGC) has issued relevant order in this
regard and most of the State Government including Govt. of
West Bengal has also issued matching order of the UGC for
career advancement of teachers.
Guardian’s opinion regarding family Support or

Source: Online Survey motivation for online classes
Observation:
From the above chart 12 it is clearly shows that 98.1%
teachers have been participated different webinar for the
academic interest and also attend different workshop or
training program for skill development and knowledge.
Webinars and e-conferences became normal during this lock
down period, and sharing expertise among academicians
around the globe with different academic matter (Jana,
2020, p. 80). Different educational institutions especially
higher education institutions have organized many national
and international webinars which are really enrich their
Observation:
knowledge in different diverse area. Cost of organizing such
type of webinars is very low in compare to conventional It is observed that parental or family support or motivation
seminar and workshop. Therefore, this is very much cost is necessary for attending online classes of their children’s,
effective also. These are not only cost effective but also time especially school going students. 64.3% respondents of
convenient. guardians are agreed in this point.

ONLINE EDUCATION
Student’s opinion regarding online classes as should be adapted to all educational institution, so that
complementary of normal classes to fulfill the objectives teachers can conduct online classes in a systematic manner.
of learning Affordable and users friendly digital learning solutions
need to be developed especially for the most vulnerable
and marginalized section of our country. Most of teachers,
students and guardians are agreed that online education is
really helpful during this lock down situation. Although, the
value of conventional education have no other alternatives.
To implement this virtual education, the mind setup of
students, teachers, guardians, administrative and academic
committees of educational institution and Governments have
to be changed, to extract the essence of ‘Online Learning’.

References:
Observation: 1. Deepali Kasrekar and Gayatri Wadhavane-Tapaswi,
From the above chart 51.43% and 49.15% respondents of (2020) ‘Impact of COVID-19 on Education System
students have gave their opinion that online classes are the in India.’ May,2020.
complementary to the normal class and these online classes 2. https://www.latestlaws.com/articles/impact-of-covid-
are helpful to fulfill the learning objectives. 19-on-education-system-in-india/
3. Jana, P. K. (2020). Impact of Covid-19 on higher
Conclusion:
education in India. International Journal of
The Covid-19 pandemic has shaken the earth from its Advanced Education and Research, 5(3), 77–81.
core and has disrupted the world economy. This pandemic https://www.researchgate.net/publication/342277024
situation is not only affected the world economy but also
4. Lin, M.-H., Chen, H., & Liu, .k.u.a.n.g.-S. (2017).
disrupted the activities of all sectors, especially education
A Study of the Effects of Digital Learning on
sectors. In India many sectors have started their operation
Learning Motivation and Learning Outcome.
in unlocking process in phase manner but education sectors
EURASIA Journal of Mathematics, Science and
is the worst affected. Although education sectors are the
Technology Education, 13(7), 3553–3564. https://
critical determinant of a country’s future economic. Due
doi.org/10.12973/eurasia.2017.00744a
to this pandemic situation many educational institutions
have started teaching – learning activities by using online 5. Nguyen, V. A. (2017). The Impact of Online
platforms and this situation is also pushing countries Learning Activities on Student Learning
policymakers to find out the proper and systematic path for Outcome in Blended Learning Course. Journal of
ensuring inclusive e-learning solutions. This pandemic has Information & Knowledge Management, 16(04),
transformed the conventional chalk–talk teaching pedagogy 1750040–1750056. https://doi.org/10.1142/
to technology driven digital education. Therefore, a multi- s021964921750040x
dimensional strategy is needed to manage this crisis and
near future digital education is likely to be integrated into
mainstream education. Proper Learning Management
[email protected]
Software (LMS) and open-source digital learning solutions
Kind Attention !!!
Hope you are getting The Management Accountant Journal in physical form at your doorstep regularly. If
not, requesting esteemed Members, Students and Subscribers to mail us at: [email protected] for smooth and
uninterrupted delivery of the same.

Down The Memory Lane
November 2010
Shri Chandra Wadhwa, former President of ICWAI,

speaking on occasion of a Seminar on Companies Bill
organized by ASSOCHAM on 09th November, 2010 at
New Delhi.
On occasion of Seminar on IFRS organized by

Lucknow Chapter of Cost Accountants. Seen in picture:
Shri Rakesh Bhalla, Vice Chairman of NIRC (speaking);
Shri O.P. Saxena, Chairman, Lucknow Chapter of Cost
Accountants and Shri Balwinder Singh, CCM, ICWAI.
November 2000
D.C. Bajaj, President, ICWAI, discussing matters

relating to the profession with Shri Satya Brata
Mookherjee, Union Minister of State for Chemicals and
Fertilizers. Others seen in the picture J.K. Puri, Past
President; R.J. Goel, Past President and present CCM.
Smt. Sushma Swaraj, Union Minister for Information

and Broadcasting is seen with R.J. Goel, Past President
and present CCM; J.K. Puri, Past President; D.C. Bajaj,
President, ICWAI; M.K. Anand, Chairman, NIRC
during their meeting with the Minister.

Down The Memory Lane
R.J. Goel, CCM and Past President; V.C. Kothari,
CCM and Chairman, Research & Journal Committee;
Carlos R. Alindada, President, CAPA; Ranel T.
Wijesinha, Deputy President, CAPA and S. Ramanathan,
CCM and Past President at 55th Meeting of CAPA
Executive Committee at Manila, Philippines on
November 8, 2000.
Shri Digvijay Singh, Chief Minister, Madhya

Pradesh, releasing Gangazal si Gazal,a collection of
Gazal composed by N.D. Jaju, Chairman, Bhopal
Chapter.
November 1990
Shri Padma Ramachandran, IAS, Chief Secretary,

Government of Kerala, delivering the valedictory
address of Regional Cost conference 1990-91 held on
23-24 November, 1990.
November 1980
Shri V. Basavaraju, President, ICWAI addressing the

Regional Cost Conference, held on 22-23 November,
1980, Hyderabad.
November 1970
Shri K. Sundaram, M.P. of Coimbatore inaugurating the Seminar on

Planning for Productivity held under the auspices of Tiruchirapalli Chapter
of Cost Accountants in collaboration with Tiruchirapalli Productivity
Council on 29th Day of November, 1970. Seen (Left to Right) Shri K.
Sundaram, M.P., Shri N. Krishnaswamy (Chairman of the Chapter), Shri R.
Nanabhoy (President, ICWA of India), Shri V. Kalyanaraman, Chairman,
SIRC.
Source: Extracted from the various issues of The Management Accountant Journal

INSTITUTE NEWS
CMA Saktidhar Singh, Chairman, PD Committee delivered
EASTERN INDIA REGIONAL COUNCIL
welcome address and CMA Ajay Kumar Samal, Secretary
of the Chapter extended formal vote of thanks.As a matter
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA of the Culture of the Chapter and prevailing practice , CMA
BHUBANESWAR CHAPTER Ajay Kumar Samal, Secretary of the Chapter welcomed to
CMA Pallab Bhattacharya, the then Chairman, ICAI-EIRC
To create further visibility and branding of CMA Profession, during his visit to Bhubaneswar Chapter in the presence of
this Chapter has felicitated to Shri Situ Behera (Rank -1) CMA Uttam Kumar Nayak, the then Secretary , ICAI-EIRC
and Miss Manasmita Mohanty ( Rank-2) in +2 Commerce and CMA B B Nayak, the then Vice Chairman, ICAI-EIRC.
Examination -2020 of Council of Higher Secondary This Chapter has organized a WEBINT on “Post COVID-19
Education on 21.08.2020 at their Residence. On behalf of Rejuvenation of MSME & AGRICULTURE SECTOR (A
the Chapter CMA Debadatta Swain , Teaching Member and way forward towards Atmanirvar Bharat)” in association
Shri H K Biswal, AAO facilitated them and wished for their with all other Chapters of Odisha on 4th October, 2020.
bright Professional Career. Same was highlighted by six Shri Sibananda Bhanja, Circle Head, Punjab National Bank,
(6) nos. print Medias in Odiya and English.CMA Mukesh Circle Office, Cuttack addressed on “AGRICULTURE
Chaubey , Chairman of the Chapter and CMA Uttam Kumar SCHEME FOR ENTERPRENURE” and Shri Susanta
Nayak , the then Secretary of ICAI-EIRC felicitated to CMA Kumar Mishra, Regional Head, Sambalpur, Union Bank
Bijay Kumar Mohanty, Chief Programme Manager, REC of India addressed on “Post COVID-19 Rejuvenation of
Ltd. and Additional Charge of CEO, FACOR Power Ltd. MSME” as “Resource Person”. CMA Saktidhar Singh,
on 25.08.2020. CMA Mukesh Chaubey , Chairman of the Chairman, PD Committee of the Chapter delivered welcome
Chapter and CMA Uttam Kumar Nayak , the then Secretary address and extended formal vote of thanks. CMA Surya
of ICAI-EIRC felicitated to CMA Saroj Kumar Sahoo, Sr. G Narayan Tripathy, Member, PD Committee of the Chapter
M (Fin) , PGCIL, Bhubaneswar on 25.08.2020. The Chapter delivered key note address on the occasion . CMA Saktidhar
has organized a WEBINT in Association with Department of Singh, Chairman, PD Committee of the Chapter met to Shri
Income Tax, Range-2, Bhubaneswar and Other Chapters at Shri Sibananda Bhanja , Circle Head, Punjab National Bank,
Odisha on 30.08.2020 on the theme “Faceless Assessment”. Cuttack Circle , presented memento and appraised the role
CMA Rakesh Bhalla, the then Chairman, Direct Taxation of CMA’s in banking sectors on October 4, 2020.
Committee, ICAI graced the occasion as “Chief Guest”
and CMA Niranjan Mishra, the then Chairman, Indirect
Taxation Committee, ICAI graced the occasion as “Special
Guest”. Shri Sitarama Rao, IRS, Additional Commissioner
of Income Tax, Range-2, Bhubaneswar graced the occasion
as “Guest of Honour” and delivered in detail on the topic
as “Resource Person”. In a nut shell deliberation held on
Faceless Assessment Scheme inaugurated as Phase 1 on
7th Oct 2019 by Hon’ble Union Finance Minister, Govt. of
India. CMA Mukesh Chaubey, Chairman of the Chapter
delivered the welcome address and made brief introduction
of Guest.CMA Saktidhar Singh, Chairman. Professional
Development Committee of the Chapter delivered key
note address. CMA Ajay Kumar Samal, Secretary of the
Chapter extended formal vote of thanks. Shri Sitarama Rao,
IRS, Additional Commissioner of Income Tax , Range-2,
Bhubaneswar was greeted on 01.09.2020. CMA Saktidhar
Singh, Chairman, PD Committee and Immediate Past
Chairman of the Chapter and CMA Niranjan Mishra, the then
Chairman, Indirect Taxation Committee presented memento
and conveyed gratitude for his gracious presence and
association of the department on the occasion of WEBINT
on “Faceless Assessment” held on 30.09.2020. The Chapter
has organized a WEBINT on “An Insight to Income Tax
Return” in association with Other Chapters at Odisha on
7th September, 2020 .CMA H Padmanabhan , the then
Chairman, Regional Councils and Chapters Coordination &
CAT Committee and AAT Board of the Institute graced
the occasion as “Chief Guest” and Dr. Abhishek Murali,
Secretary, Southern India Regional Council of The Institute
of Chartered Accountants of India, Chennai addressed on
the topic with lot of analytical data as “Resource Person”.

INSTITUTE NEWS
Health Talk”. The session was conducted by CMA Mandeep
Singh, Joint Secretary, Beawar Chapter. CMA Mandeep
Singh, Joint Secretary of the Chapter introduced and
welcomed the Chief Guest CMA Harkesh Tara, Chairman,
NIRC and Guest of Honour CMA Rajendra Singh Bhati,
RCM, NIRC. CMA Jyoti Maheshwari introduced the
Keynote Speaker, Mrs. Ritu Agarwal, Facilitator and Teacher
at the Art of Living Happiness and Wellness Programs and
Certified Yoga Instructor. Mrs. Ritu not only showed many
exercises that can be done at work, she also stressed on
the benefits of meditation and pranayam for improving the
quality of life. the program ended with a small talk by the
guests and vote of thanks by Chairman, Beawar Chapter,
CMA Rupesh Kothari.The third webinar of the series was on
the topic “Strategy to pass Limited Insolvency Examination
and Opportunities for Professionals in IBC 2016.” This
Webinar was jointly conducted by Beawar Chapter and Kota
NORTHERN INDIA REGIONAL COUNCIL Chapter of Cost Accountants on 18th October, 2020. CMA
AkashAgarwal, Chairman, Kota Chapter and CMA Rupesh
Kothari Chairman, Beawar Chapter welcomed the the Chief
Guest CMA (Dr.) S.K.Gupta, CEO, Insolvency Professional
KOTA CHAPTER
Agengy-ICAI, and Guests of Honour, CA Manohar Bhandari,
DGM (Taxation), Shree Cement Limited, Beawar and
NIRC &the Chapter in association with The SSI Advocate Raj Kumar Vijay, President, Tax Bar Association.
Association,Kota organised the Webinar on “One time CMAs Tapesh Mathur, Vice Chairman, A.K. Jethaliya,
Restructuring (OTR) of Loan- Benefits & Challenges” on Secretary, Surendra P Gupta, Treasurer, MukutSonkhiya,
12th September 2020. CMA Sunil Pandey (CMA,CA, and Satyawan Sharma, Kota Chapter, and CMAs Maneesh Jain,
IIM-C Alumni) was the expert faculty of the webinar. Vice Chairman, Mitesh Chopra, Secretary, Mandeep Singh,
Joint Secretary, JyotiSarda, Treasurer, Aditi Gaud, Beawar
Chapter, introduced the eminent guests and speakers. The
Keynote Speaker for the day CMA J.K. Budhiraja (Founder
CEO, Insolvency Professional Agengy-ICAI,), pointed out
the changes between the current and the new syllabus which
will come into effect from 1st Jan 2021. He also spoke about
the eligibility criteria, registration process, examination
centers, study material and exam preparation in detail. At
the end, Program Convener, CMA S. N. Mittal, Chairman
PD Committee, Kota Chapter, thanked all the participants,
guests, members of Kota and Beawar Chapter and CMA
JatinAgarwal of Technical team for active participation in
the program and for making it a grand success.

BEAWAR CHAPTER
The Chapter started series of webinars for sharing

knowledge among professionals and students, named as
“Enhance Knowledge – Enlighten Yourself “. The first
webinar was on 4th October 2020 on the topic “Key Issues
in GST Annual Returns & Audit.” CMA Mitesh Chopra,
Secretary, of the Chapter gave opening remarks and
welcomed chief guest CMA Satya Narayan Mittal, and Guest
of Honour CMA Prakash Kothari. Thereafter CMA Jyoti
Sarda, Treasurer of the Chapter welcomed the Key Speaker
and participants. Key Speaker of the Webinar was CA Ankit
Somani, Leading Tax Practitioner from Ajmer. He explained
in detail the key issues in GST Annual Returns & Audit and
also recent developments in GST. CMA Rupesh Kothari,
Chairman of the Chapter thanked all the participants.The
second webinar was on 11th October on “Desktop Yoga and

INSTITUTE NEWS
practical points/issues, to the notice of the Chief Guest. As
part of the programme, question-answer session was held
during which Dr G M Doss, addressed the queries raised
by the participants. CMA (Mrs.) Jyothi Satish, Chairperson
– SIRC, in her concluding remarks pointed out that the
enormous knowledge and varied work experience of the
Chief Guest was visible in his deliberation of the topic
‘Faceless Assessment’ & he has passionately explained the
step-by-step processes involved there in. She expressed
heartfelt gratitude to Chief Guest for being present with the
CMA Professionals throughout the program and sharing his
valuable inputs. CMA Rajat kumar Basu, Secretary, Indirect
Taxation Committee – ICAI thanked the Chief Guest and
SOUTHERN INDIA REGIONAL COUNCIL Resource Person for their valuable and thought-provoking
address on ‘Faceless Assessment’. PG & Research
As per the directives received from Taxation Research Department of Commerce, Dwaraka Doss Goverdhan
Department (TRD), ICAI, a WEBINT on the Topic, Doss Vaishnav College, Chennai inaugurated the 3rd batch
“Faceless Assessment 2020” was organised by SIRC on crash course in GST organised in association with the Tax
11th September, 2020. Chief Guest was Dr G M DOSS Research Department, The Institute of Cost Accountants
Commissioner Income Tax, now Addl. Director General of India on 16th September 2020.Prof. S. Seshadrinathan
(Vigilance - South Zone). CMA S S VINOTH KUMAR, Tax initiated the event with a holistic and spiritual prayer and
Consultant was the resource person. CMA H. Padmanabhan,
Council Member – ICAI hosted the event and welcomed
the Chief Guest, Guest Speaker and CMA Dignitaries
and Members to the event. He appreciated the TRD for
initiating the program & SIRC for organizing the program.
CMA Rakesh Balla, Chairman, Direct Taxation Committee,
thanked the Chief Guest and Guest Speaker for accepting the
invite to address the CMA members, in spite of their busy
schedule. He also thanked Shri Narendra Modi, Hon’ble
Prime Minister of India, for introducing the ‘Faceless
Assessment’ Scheme, a transparent and relevant scheme
during the COVID-19 pandemic. CMA (Mrs.) Jyothi Satish,
Chairperson – SIRC in her opening remarks said that it is
our pleasure and privilege to invite all as per the directive
from HQ for this PD Programme on ‘Faceless Assessment
2020’. In her address, Chairperson – SIRC highlighted that
‘Time is more important’ in the present day world. ‘Faceless
Assessment’ scheme is a very good initiative by the Govt.
during the present pandemic situation and surely Cost
Accountants will play an important role in bridging the gap
between the Government and the stakeholders. She also
thanked the Institute, especially Taxation Committees and
RC & Chapters Coordination Committee for organising this
Programme for the benefit of the members at the right time
and while concluding she introduced the Chief Guest Dr.G
M Doss, Commissioner of IT, Chennai and Addl. Director
General (Vigilance – South Zone) & recalled & appreciated
the one Day seminar by him & team at SIRC last year.
The Chief Guest Dr. G.M. Doss in his address expressed
his happiness in addressing CMA Members who involve
themselves in nation building activities. The Resource
Person, CMA S.S. Vinoth Kumar, Tax Consultant from
Chennai who was introduced by CMA (Mrs.) Jyothi Satish,
Chairperson – SIRC in his address mentioned that the
Chief Guest covered all the major topics to be addressed by
him and hence wished to address a few, specific topics, viz.
‘Historical Evolutions’, ‘Faceless Assessment Ecosystem’
and ‘ Powers with Jurisdictional AO’. He also brought some

INSTITUTE NEWS
Dr. J. Jayasankar, Head of the Department of Commerce, contracts with Customers’ Ind AS 115”, “Public Procurement
welcomed the gathering via virtual mode. The Event was Management – Policy, Process & Reforms” (with reference
presided by CMA Biswarup Basu, Vice President, ICAI. to Govt. of India & Govt. of Karnataka), “Business Ethics”
The Students interacted with the Vice President, Key Note on various dates of September 2020. Shri M. Madhava,
speaker and with the other officials of the TRD, Institute. Management Consultant - Insurancetech , CMA Guruprasad
Keynote Address was delivered by CMA Raju Iyer P, V.- Management Consultant, Shri S.K. Manjunath , Former
Council Member & Chairman – IAASB , ICAI . CMAs H Provident Fund Commissioner - Bengaluru II, Karnakata,
Padmanabhan, Dr. V Murali, Council Members – ICAI & Ministry of Labour and Employment, GOI, CMA S.
CMA (Mrs.) Jyothi Satish, Chairperson – SIRC conveyed RudraPrakash, Technical Accountant, Corporate Financial
their greetings to the organisers electronically. The event was Reporting – HP Inc, Shri. Rajeswar H.N, Consultant –
co-ordinated by CMA RajatBasu, Tax Research Department Public Procurement Management, CS Gopalakrishna Hegde,
– ICAI & CMA Rakesh Shankar Ravisankar, Chennai. Chairman, STRTA Consulting Services Pvt. Ltd., Former
Member – National Council, ICSI, Delhi were the speakers
of the Meets. Dhee-Vikasa Students Study Circle Meeting
on Mutual Funds and M S Excel Practical Approach were
organized by the chapter.

COIMBATORE CHAPTER
The Chapter Chairman visited Bharathiyar University on

14th September, 2020 and had a meeting with the Registrar
in connection with recognition of CMA qualification for
admission to M.Phil/Ph.D. He has presented a representation
to the Registrar. Chapter MC Member & past Chairperson
CMA Meena Ramji, in-charge of Students’ Training &
Placement conducted an online meeting with the Chapter
students on 20th September, 2020. On request from students
a second online meeting was conducted on 11th October,
2020 on the topic ‘ Tips for Resume writing’. There was a
special address by past MC Member CMA C R Shivkumaran,
Company Secretary, Lakshmi Machine Works Limited,
Coimbatore to the students on the topic.The Chapter Jointly
with the Department of Commerce, Hindusthan College
of Arts & Science, Coimbatore organised “Kahoot-T20
National Level Commerce Quiz Competition” from
19.09.2020 to 29.09.2020. The competition was conducted
online.The Chapter Chairman conducted online career
counselling programs to the students at local Colleges on
various dates of August and September 2020.
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
BANGALORE CHAPTER KOZHIKODE MALAPPURAM CHAPTER
The Chapter organized various professional development A MoU was signed between the Chapter and St.Joseph’s
meets on “Impact of new technologies like Artificial College, Devagiri in Calicut on 30th September,2020.CMA
Intelligence on the work of Finance Professionals”, Askarali P.C, Chairman of the chapter, Mr.Bony Augustine,
“Occupational Fraud - An Introduction”, “An Insight into Administrator of St.Joseph’s College, Devagiri, Mr Sunil
the Employees’ Pension Scheme 1995”, “Revenue from M Antony, Director of St.Joseph’s College, Devagiri &

INSTITUTE NEWS
Mr.CMA Vijith.P, Treasurer of the chapter attended the
programme.

HYDERABAD CHAPTER
On September 1, 2020 the chapter organized a Course on

Company Law Works by Practising Cost and Management
Accountants – Session 2. CMA P. Chandra Sekhara Reddy
detailed how-to increase the authorized capital of a company,
practical aspects of the draft resolutions and contents in the
E-forms etc. On September 6, 2020 the chapter organized
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA a programme on scope of Internal Audit for CMAs and
MYSURU CHAPTER
risk-based internal audit. CMA Dr. A.S. Durga Prasad Garu
CMA Dr K. Ch. A.V.S.N. Murthy Garu acknowledged the
Sarada Vilas College, Department of Commerce and
contribution of CMA B.B. Goyal towards our profession.
Business Administration Internal Quality Assurance Cell,
CMA Dr K.Ch. A.V.S.N. Murthy Garu emphasized the
Krishnamurthypuram, Mysuru in association with The
importance of the Internal Audit by giving example about
Institute of Cost Accountants of India-Mysuru Chapter
“TOSHIBA.” CMA Raju Iyer told that Internal Audit is an
had organized a Webinar on “Role of CMA Professionals
area where our professionals get a lot of opportunities. CMA
in Economic Development and Professional Avenues
GOYAL deliberated Conceptual and practical issues in an
for CMAs”on 12th October 2020. Smt. Dr. Jyothi. A.N.
excellent manner. His presentation covered Internal Audit
Assistant Prof.PG Centre, HOD department of Commerce
Importance, objectives of Internal Audit, Skills of Internal
and business Administration of Saradavilas college
Audit, Scope of Internal Audit, Core Principles of Internal
welcomed the participants and told that today’s platform
Audit, Internal Audit Standards, and Legal Provisions on
is to gain the knowledge. The seminar was inaugurated by
Internal audit, Glossary of important terms used in Internal
Prof. Sathyanarayana, Dean Department of Commerce,
Audit etc. On 13.09.2020 the chapter organized a programme
Saradavilas college.CMA Dr.Tinesha. T.R. Secretary of
on Internal Audit in Cement Industry. CMA U. Lakshmana
the chapter was a Resource Person for the Webinar who
Rao gave a very exhaustive presentation that covers
spoke about “The Role of CMA professionals in Economic
Glossary of Terms in Cement Industry, Overview of Cement
Development and Professionals Avenues for CMAs“with
Industry, Process of Manufacture, Special Transactions
his valuable inputs through Power Point Presentation.
to Cement Industry, Internal Audit of Operational Areas
CMA Ashok Kumar M, Chairman of the chapter was the
of Cement Industry, Effectiveness of Internal Audit in
invitee and he was present throughout the webinar. Sri.
Cement Industry, Key Performance Indicators vis-à-vis
Parthasarathy. B.S. President, Sri.K. Srinath Ho. Secretary
benchmarking, Internal Audit of Functional Areas, Cost
and Smt. Dr.Devika, Principal of Saradavilas Educational
Audit in Cement Industry, Industry 4.0 in Cement industry,
Institution was also present. Smt. Arpitha.K., Asst. Professor
Cost of Setting up of New Cement Plant in India etc. On
PG centre M.Com Saradavilas College Mysuru proposed
September 16, 2020 the chapter organized a programme on
vote of thanks.
Building competitive advantage through Mgt. Accounting
tools & techniques – A case study. Sri J. H. Rao explained
the importance of Accounting tools & Techniques, Key
challenges, strategies, Cost of capital, Industrial structure
analysis, customer segmentation, key elements, the strategy
choice cascade, Strategy map etc. As a part of ‘’Capacity
Building for CMAs’ The Hyderabad Chapter has declared
September month as Internal audit month. The Chapter
has organised a series of webinars on “Capacity Building
for CMAs on Internal Audit “and invited eminent resource
persons and dignitaries to these programmes. On September
20, 2020 the chapter organized a programme on Internal

INSTITUTE NEWS
Audit for Process Efficiency – CMA K.S.N. Murthy & through Google Digital platform.CMA Pradeep Deshpande,
Forensic Angle on Internal Audit -Speaker CMA Mrityunjay Secretary welcomed all the members present for the
Acharjee, Practicing Cost Accountant. CMA K.S.N. webinar. He has introduced the speaker CMA L D Pawar,
Murthy with his authoritative knowledge explained about Practicing Cost Accountant and Past Chairman – WIRC of
statutory provisions, About Internal Audit, Audit Universe, ICAI. CMA L D Pawar in speech focused on the objectives
how internal audit starts, planning an Internal Audit, Eight of IBC Code. The Chapter conducted webinar on ‘Effective
areas of waste, The Five Cs and Risk and Internal Audit, and Useful Cost Audit in Manufacturing Industries’ on 12th
Risk Appraisal, Process Effectiveness vs Process efficiency, September, 2020 through Google Digital platform. CMA
Stages in-process review, Process Efficiency Metrics, Jayant Hampiholi, Chairman welcomed all the members
Cost Control strategies, Cost Control Methods, Internal present for the webinar. He has introduced the speaker
Controls, types of Controls etc. Forensic audit has gained a CMA Dhananjay Kumar Vatsyayan, Practicing Cost
lot of importance in recent days. CMA Mrityunjay Acharjee Accountant.CMA Dhananjay Vatsyayan in speech started
explained the benefits of using technology in forensic with types of Products and the Specifications in Industries.
audit, skills required by a forensic auditor, identifying and He gave the examples accordingly such as Automobile,
analyzing the possibility of fraud etc.In order to facilitate the Mobile, Pharmaceuticals, Chemicals, and Sugar etc.CMA
companies registered in India to make a fresh start on a clean Pradeep Deshpande, Secretary of the chapter gave the vote
slate, The Ministry of Corporate Affairs has decided to take of thanks. The Chapter conducted webinar on ‘Total Cost
certain alleviative measures for the benefit of all companies Management’ on 19th September, 2020 through Google
on September 22, 2020. CS N. Varalakshmi, Practising CS, Digital platform. CMA Pradeep Deshpande, Secretary has
Insolvency Professional, Register valuer explained about welcomed all the members present for the webinar. He has
those measures and circulars. Shri Josekutty VE, ROC was introduced the speaker CMA Ashish Inamdar, Practicing
invited as chief guest for this programme. The chapter on Cost Accountant. CMA Ashish Inamdar in his speech said,
27.09.2020 organized a programme on Internal Audit in our mission is to help our clients prosper by providing them
the Era of New Normal, Valedictory session & Release of with a wide array of Professional Business and individual
souvenir. This programme started with Panel discussion. services, products and solutions to help them better manage
CMA B. Mallikharjuna Gupta, Chief Taxologist - Logo their resources. CMA Sagar Malpure, Managing Committee
Infosoft, CMA Suraj Prakash – Director (Finance) – BEML Member – PCA Chapter gave the vote of thanks. The
Ltd, Shri T. Neelakanta Menon- President- IIA-Hyderabad Chapter conducted webinar on ‘Unlock o Take-Off – A
Chapter, CMA Ashwani Kumar Agarwal,- Founder Team – Paradigm shift for CMA’s’ on 26th September, 2020 through
AAKA took part in the panel discussion.The programme was Google Digital platform.CMA Ashish Deshmukh, Past
followed by a Valedictory Session. CMA Biswarup Basu – Chairman of PCA Chapter has welcomed all the members
President, CMA P. RajuIyer – Vice President and CMA K. present for the webinar. He has introduced the speaker CMA
Ch. A.V.S.N. Murthy- CCM of our Institute and CMA Jyothi Gopal Bhutada, Head – Business Finance, Tata Motors Ltd.
Satish –Chairperson-SIRC of ICMAI were invited during In live industry experiences he said that there are few key
the session. imperatives to ensure a strong cost strategy. A well-aligned
organisation is key to drive long-term sustainability of
benefits of cost strategy. The session was well interactive.
The seminar was attended by members in practice, members
from industries, professionals and students in large numbers.
CMA Pradeep Deshpande, Secretary of the Chapter gave the
vote of thanks.

SURAT SOUTH GUJARAT CHAPTER
The Chapter organized a social awareness Program

on “Positivity in Adversity” on 19th Sep. 2020 through
the google meet. Speaker of the Program was Swami
Shree Gnanvatsaldasji from BAPS- Swaminarayan. The
Chairman, CMA Bharat Savani presented a welcome
address and Immediate Past Chairman, CMA Brijesh Mali
gave introduction of the speaker to the members. Swamiji
WESTERN INDIA REGIONAL COUNCIL commenced the session and spoke about how to be positive
in this pandemic situation by illustrating the examples of
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA successful people around the world and answered several
PIMPRI CHINCHWAD AKURDI CHAPTER questions from the members. CMA Pankaj Kannaujiya,
Secretary presented formal vote of thanks to the speaker
The Chapter conducted webinar on ‘Preparation of and participants.By taking all necessary safety precautions
Resolution Plan under IBC’ on 6th September, 2020 & following the Government & HQ guidelines, the Chapter

INSTITUTE NEWS
hosted a Press Meet at the Chapter’s campus. CMA Bharat
Savani, (Chairman), CMA Nanty Shah (Vice Chairman)
AHMEDABAD CHAPTER
CMA Brijesh Mali (Immediate Past Chairman), CMA Kishor
Waghela, CMA Mahesh Bhalala (Managing Committee
The Chapter organized various CEP Programs during Aug-
Members) and students joined the Meet. The Press Meet was
Sept’20 for the members. The Program was inaugurated by
being held for the declaration of results for foundation exam
welcome speech given by CMA Malhar Dalwadi, Secretary
held for June 2020 term the exam was held online and in
of Chapter. CMA Haren Bhatt, Chairman of Chapter and
September due to Covid Pandemic. The Chapter organized a
CMA Dakshesh Choksi, Chairman of PD Committee
webinar on the subject of “Various Opportunities & products
welcomed faculties during the session. There were many
for CMAs & CMA students offered by Bank of Baroda”
members, who have attended the programs organized by
on 26th Sep 2020 through google meet. CMA Bharat
Chapter. The 3 days series workshop was also attended by
Savani (Chairman) presented formal welcome address to
many of Intermediate students as a part of their computer
all the participants.CMA Nanty Shah (Vice Chairman),
training. The programs were well appreciated by participants.
CMA Keval Shah (Treasurer), CMA Kishor Vaghela and
CMA Malhar Dalwadi proposed vote of thanks.
CMA Mahesh Bhalala – Managing Committee Members
introduced the speakers to the participants. She spoke about
how professions are being affected due to COVID 19 and THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
the extensions made by the government to file the returns NASIK OJHAR CHAPTER
for TDS, Income Tax, GST and Corporate Law.The Chapter
organized a Webinar on the subject of “Practical Issues The Chapter organized a Live session for members
Faced While Filing GSTR 9,9C and GST Audit” on 30th and other stakeholders on 9th September 2020 on “Data
September 2020 through Google Meet. Chief Guest for Analytics”. Chairman of chapter, CMA Kailash Shinde
the program was CMA Harshad Deshpandey, Chairman welcomed the speakers and the participants. The speaker
WIRC. Accompanied with CMA Dinesh Kumar Birla, Vice for the session was Dr. CMA Shilpa Parkhi, a Practicing
Chairman- WIRC, CMA Vikas Deodar, Past President- Cost Accountant and Past Chairman of Nashik Ojhar
ICAI.CMA Nanty Shah (Vice-Chairman) recognized the Chapter. She explained the types of data analytics to improve
presence of all dignitaries. CMA Bharat Savani (Chairman- the decision making process, how to choose the most
Surat South Gujarat Chapter) presented the formal welcome appropriate data analytic tools etc.The session ended with a
address and also introduced the Chief Guest by briefing his vote of thanks given by CMA Nikhil S.Pawar.The Chapter
profile & achievements to all the participants. CMA Dinesh recently conducted a virtual Felicitation Programme for all
Birla and CMA Vikas Deodar also graced the occasion by foundation passed students on 27th Sept 2020. The Institute
saying few words to the audience. CMA Manubhai Desai, conducted for the first time an online exam for foundation
Past Chairman of WIRC & Chaptergracedthe Occasion with due to a pandemic COVID 19 situation. The chief guest for
briefing members and showering them with blessings and said event was CMA R.K. Deodhar, (Past Chairman of Nasik
good luck. CMA Keval Shah (Treasurer -SSGC) introduced Chapter) and CMA Chaitanya Moharir, Committee member
CMA Nidhi Bhandhari, Speaker to the audience. CMA of WIRC felicitated the successful students and guided them
Nidhi commenced her session and gave a brief on Annual for future study and courses. The programme was attended
Return GSTR9. CMA Bhanwarlal Gurjar (Vice Chairman- by all successful students through the online mode. The
SSGC) introduced the second speaker CMA Dr. Shailendra Programme was coordinated by student Amit Jadhav and
Saxena- Past Chairman- SSGC. Shailendra Sir guided all the CMA Maithili Malpure (Oral coaching Faculty). Chairman
participants about The Practical Aspects of GSTR 9C & GST CMA Kailas Shinde delivered his Chairman Speech and
Audit. At the end of the session the speaker answered the gave warm wishes to students on their success. CMA Nikhil
queries of the participants. CMA Kishor Vaghela, Managing S. Pawar (Managing Committee Member) addressed the
Committee Member of the Chapter presented formal vote students about various training conducted by the Chapter.
of thanks. CMA Mayur Nikam, Secretary of the chapter also wished
students for their future career. Vote of thanks was given by
CA Deepak Jagtap, (Treasurer).

STATUTORY UPDATES
DIRECT & INDIRECT TAX UPDATES - OCTOBER 2020

DIRECT TAXES (iii) such depreciation is not allowed to be set off
under sub-clause (a) of clause (ii) of sub-section (2)
of section 115BAC or clause (ii) of sub-section (2) of
� Notification No 82/2020 dated 1st Oct 2020: The
section 115BAD,
Central Board of Direct Taxes hereby makes further
amendment the Income-tax Rules, 1962, may be the written down value of the block of asset as on
called the Income-tax (22 nd Amendment) Rules, the 1st day of April, 2020 shall be increased by such
2020. depreciation not allowed to be set off.

in rule 5, in sub-rule (1), for the proviso, the following
� Notification No 83/2020 dated 19th Oct 2020: In
proviso shall be substituted, namely: - “Provided that
exercise of the powers conferred by the third proviso
the allowance under clause (ii) of sub-section (1) of
to sub-section (2) of section 92C of the Income-tax
section 32 in respect of depreciation of any block of
Act, 1961 (43 of 1961)(hereinafter referred to as the
assets entitled to more than forty per cent shall be
said Act), read with proviso to sub-rule (7) of rule
restricted to forty per cent on the written down value
10CA of the Income-tax Rules, 1962, the Central
of such block of assets in case of –
Government hereby notifies that where the variation
(i) a domestic company which has exercised option between the arm’s length price determined under
under sub-section (4) of section 115BA, or under sub- section 92C of the said Act and the price at which
section (5) of section 115BAA, or under sub-section the international transaction or specified domestic
(7) of section 115BAB; or transaction has actually been undertaken does
(ii) an individual or Hindu undivided family which not exceed one per cent of the latter in respect of
has exercised option under sub-section (5) of section wholesale trading and three per cent of the latter in
115BAC; or all other cases, the price at which the international
(iii) a co-operative society resident in India which transaction or specified domestic transaction has
has exercised option under sub-section (5) of section actually been undertaken shall be deemed to be the
115BAD: arm’s length price for assessment year 2020-2021.
Provided further that, for the purposes of section For the purposes of this notification, “wholesale
115BAA, if the following conditions are satisfied, trading” means an international transaction or
namely: - specified domestic transaction of trading in goods,
(i) option under sub-section (5) thereof is exercised which fulfils the following conditions, namely:- (i)
for a previous year relevant to the assessment year purchase cost of finished goods is eighty per cent.
beginning on the 1st day of April, 2020; or more of the total cost pertaining to such trading
(ii) there is a depreciation allowance, in respect of activities; and (ii) average monthly closing inventory
a block of asset, from any earlier assessment year of such goods is ten per cent or less of sales pertaining
or allowance of unabsorbed depreciation deemed to such trading activities.
so under section 72A, which is attributable to the
provisions in clause (iia) of sub-section (1) of section � Notification No 84/2020 dated 22nd Oct 2020: Vide
32; and Notification No. 84 /2020, dated 22 October, 2020,
Rule 67 of the Income-tax Rules, 1962 has been
(iii) such depreciation or allowance for unabsorbed
amended. The said amendment shall be effective
depreciation is not allowed to be set off under clause
from Assessment Year 2021-22 and subsequent years.
(ii) or clause (iii) of sub-section (2) thereof, the written

down value of the block of asset as on the 1st day of
April, 2019 shall be increased by such depreciation or
exercise of the powers conferred by section 3 of the
allowance for unabsorbed depreciation not allowed to
Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020),
be set off
the Central Government hereby notifies that the (a)
Provided also that, for the purposes of section
31st day of December, 2020 shall be the date, on
115BAC and section 115BAD, if the following
or before which a declaration shall be filed to the
conditions are satisfied, namely: -
designated authority, by the declarant, in accordance
(i) the option under sub-section (5) of the respective
with the provisions of section 4 of the said Act in
section is exercised for a previous year relevant to the
respect of tax arrear (b) 31st day of March, 2021 shall
assessment year beginning on the 1st day of April,
be the date on or before which the amount payable
2021;
under the said Act shall be paid as per third column
(ii) there is a depreciation allowance, in respect of of the Table to section 3 of the said Act; and (c) 1 st
a block of asset, from any earlier assessment year day of April, 2021 shall be the date on or after which
which is attributable to the provisions in clause (iia) the amount payable under the said Act shall be paid
of sub-section (1) of section 32; and as per fourth column of the Table to section 3 of the

STATUTORY UPDATES
said Act. electronically through electronic verification code.
The statement in Form No. 1 required to be furnished
� Notification No 86/2020 dated 28th Oct 2020: In under sub-section (1) of section 167 of the Act
exercise of the powers conferred by sub-section (1) shall be furnished on or before the 30th day of June
of section 280A of the Income-tax Act, 1961 (43 of immediately following that financial year.
1961) and in supersession of the notification of the
The Principal Director-General of Income-tax
Government of India in the Ministry of Finance
(Systems) or Director General of Income-tax
(Department of Revenue), No. 37/2018 dated the
(Systems), as the case may be, for the purpose of
8th August, 2018, published in the Gazette of India,
ensuring secure capture and transmission of data,
Extraordinary, Part II, Section 3, Sub-section (ii), vide
shall- (i) lay down the procedure for electronic
number S.O. 3942(E), dated the 8th August, 2018,
filing of Form No.1; (ii) lay down the data structure,
except as respects things done or omitted to be done
standards and manner of generation of electronic
before such supersession, the Central Government,
verification code, referred to in sub rule (2), for
in consultation with the Chief Justice of the Gauhati
the purpose of verification of the person furnishing
High Court, hereby designates the Court of Munsiff
the said form; (iii) be responsible for formulating
No. 3-cum-Judicial Magistrate, 1st Class, Kamrup
and implementing appropriate security, archival
(M), Guwahati as the Special Court for the States of
and retrieval policies in relation to the said form so
Assam, Nagaland, Mizoram and Arunachal Pradesh
furnished; and (iv) specify the manner of furnishing
for the purposes of the said sub-section.
the revised statement required to be furnished under

sub-section (2) of section 167 of the Act.
In the said rules, in rule 6,
exercise of the powers conferred by sub-section (1)
and sub-section (2) of Section 179 of the Finance Act, (a) in the heading, after the words “specified
2016 (28 of 2016), the Central Government hereby services” the words “or e-commerce supply or
makes the following rules to amend the Equalisation services” shall be inserted; (b) for the words “Where
levy Rules, 2016. an assessee fails”, the words, “Where an assessee or
In the Equalisation levy Rules, 2016 (hereinafter e-commerce operator, as the case may be, fails” shall
referred to as the said rules), in rule 2, after clause (a), be substituted.
the following clause shall be inserted, namely:- ‘(aa)
“electronic verification code” means a code generated � Notification No 88/2020 dated 29th Oct 2020: —In
for the purpose of electronic verification of the person exercise of the powers conferred by sub-section (1) of
furnishing the statement of specified services as per section 3 of the Taxation and Other Laws (Relaxation
the data structure and standards laid down by the and Amendment of Certain Provisions) Act, 2020
Principal Director- General of Income-tax (Systems) (38 of 2020) (hereinafter referred to as the Act), the
or Director General of Income-tax (Systems), as the Central Government hereby specifies, for the purpose
case may be. of the said sub-section (1), that, in a case where the
In the said rules, in rule 3 specified Act is the Income-tax Act, 1961 and the
compliance for the assessment year commencing on
(a) in the heading, the words “for specified services”
the 1st day of April, 2020, relates to
shall be omitted; (b) for the words “The amount of
consideration, for specified services and”, the words, (i) furnishing of return under section 139 thereof, the
“The amount of consideration” shall be substituted. time-limit for furnishing of such return, shall –
In the said rules, for rules 4 and 5, the following shall (a) in respect of the assessees referred to in clauses
be substituted, namely:- (a) and (aa) of Explanation 2 to sub-section (1) of the
“4. Payment of Equalisation levy. ─ The assessee or said section 139, stand extended to the 31st day of
e-commerce operator, as the case may be, who are January, 2021
required to deduct and pay equalisation levy, shall (b) in respect of other assessees, stand extended to the
pay the amount of such levy, by remitting it into the 31st day of December, 2020.
Reserve Bank of India or in any branch of the State Provided that the provisions of the fourth proviso
Bank of India or of any authorised Bank accompanied to sub-section (1) of the Act shall, mutatis mutandis
by an equalisation levy challan. apply to these extensions of due date, as they apply to
5. Statement of specified services or e-commerce the date referred to in sub-clause (b) of clause (i) of
supply or services. ─ (1) The statement required to the third proviso thereof.
be furnished under sub-section (1) or sub-section (2) (ii) furnishing of report of audit under any provision
of section 167 of the Act shall be in Form No. 1, duly of that Act, the time-limit for furnishing of such
verified in the manner indicated therein, and may be report of audit shall stand extended to the 31st day of
furnished by the assessee or e-commerce operator, as December, 2020.
the case may be, in the following manner, namely:-
(i) electronically under digital signature; or (ii) � Circular No. 18/2020 dated 28th Oct 2020:

STATUTORY UPDATES
Clarifications in respect of the Direct Tax Vivad satisfied that it is necessary in the public interest so
se Vishwas Act, 2020. With the objective to reduce to do, hereby makes amendment in the notification
pending income tax litigation, generate timely of Government of India, in the Ministry of Finance
revenue for the Government and benefit taxpayers by (Department of Revenue), No. 13/2020- Customs,
providing them peace of mind, certainty and savings dated the 14th February, 2020. In the said notification,
on account of time and resources that would otherwise in paragraph 2, in clause (1) in sub-clause (c), for
be spent on the long-drawn and vexatious litigation the figures, letters and word “31st March, 2020”, the
process, the Direct Tax Vivad se Vishwas Act, 2020 figures, letters and words “31st March, 2021 or until
(hereinafter referred to as ‘Vivad se Vishwas’) was such date the RoSCTL scheme is merged with the
enacted on 17th March, 2020. The provisions of Remission of Duties and Taxes on Exported Products
Vivad se Vishwas had been amended by the Taxation scheme, whichever is earlier”, shall be substituted.
and Other Laws (Relaxation and Amendment of
Certain Provisions) Act, 2020 to provide certain ~~ Notification No. 37/2020-Customs dated 20th Oct
relaxation in view of the COVID-19 pandemic and 2020: In exercise of the powers conferred by sub-section
also to empower the Central Government to notify (1) of section 25 of the Customs Act, 1962 (52 of 1962)
certain dates. read with rule 9 of the India-Korea Comprehensive
Economic Partnership Agreement (Bilateral Safeguard
The Central Government vide the notification S.O. Measures) Rules, 2017, the Central Government, on
3847(E), dated 27th October, 2020, has extended the being satisfied that it is necessary in the public interest
date for payment without additional amount under so to do, hereby makes further amendments in the
Vivad se Vishwas from 31 st December, 2020 to 31 st notification of the Government of India, in the Ministry
March, 2021. The said notification also noti fied the of Finance (Department of Revenue), No.152/2009-
last date for filing declaration under Vivad se Vishwas Customs, dated the 31st December, 2009.
as 31 st December, 2020.
In the said notification in the Table, (i) against serial
Under the existing provisions of sub-section (2) of number 342A, for the entry in column (3), the entries
section 5 of the Vivad se Vishwas, the declarant is “Polybutadiene Rubber excluding titanium and lithium
required to pay the amount within a period of 15 grades”, shall be substituted; (ii) after serial number
days from the date of receipt of certificate from the 342A and the entries relating thereto, the following
designated authority. However, as per the aforesaid serial number and entries shall be inserted, namely: -
notification, a declarant who files declaration on or
before 31 st December, 2020 can make payment (1) (2) (3) (4)
without additional amount on or before 31 st March, All goods other than those
2021. Hence, requiring payment by the declarant “342B 400220 mentioned against serial number 0.00”;
within a period of 15 days from the date of receipt of 342A
certificate from the designated authority may result
into undue hardship for the declarant in whose case In the second proviso, in clause (b), for the word, figures
the period of 15 days expires before 31st March, and letter “number 342A”, the word, figures and letter
2021. “numbers 342A and 342B”, shall be substituted.
In order to mitigate undue hardship and remove
difficulty that may be caused by the aforesaid � Notification No. 38/2020-Customs dated 21st Oct
requirement of payment within 15 days from the date 2020: - In exercise of the powers conferred by sub-
of receipt of certificate from the designated authority, section (1) of section 25 of the Customs Act, 1962 (52
in exercise of powers conferred under section 10 and of 1962) (hereinafter referred to as the said Act), the
11 of Vivad se Vishwas, it is hereby clarified that Central Government, being satisfied that it is necessary
where a declarant files a declaration under Vivad in the public interest so to do, hereby exempts goods,
se Vishwas on or before 31 st December, 2020, the when imported into India against a duty credit scrip
designated authority, while issuing the certificate (hereinafter referred to as the said scrip) issued by
under sub-section (I) of section 5 of the Vivad se the Regional Authority under the Scheme for Rebate
Vishwas, shall allow the declarant to make payment of State Levies on export of garments and made-
without additional amount on or before 31 st March, ups (hereinafter referred to as the RoSL scheme) in
accordance with paragraph 4.01(d) of the Foreign
2021.
Trade Policy read with paragraphs 4.97 and 4.98 of the
Handbook of Procedures from
INDIRECT TAXES (a) the whole of the duty of customs leviable thereon
under the First Schedule to the Customs Tariff Act,
Customs 1975 (51 of 1975) (hereinafter referred to as the said
� Notification No. 36/2020 – Customs dated 5th Oct Customs Tariff Act); and
2020: - In exercise of the powers conferred by sub- (b) the whole of additional duty leviable thereon under
section (1) of section 25 of the Customs Act, 1962 sub sections (1), (3) and (5) of section 3 of the said
(52 of 1962), the Central Government, on being Customs Tariff Act.

STATUTORY UPDATES
The exemption shall be subject to few conditions. Provided that nothing contained in this notification
shall apply to the goods specified against serial
~~ Notification No. 39/2020-Customs dated 28th Oct number 1 of the said Table after the 31st day of
2020: In exercise of the powers conferred by sub- January 2021.
section (1) of section 25 of the Customs Act, 1962
(52 of 1962) and sub-section (12) of section 3 of the � Notification No. 41/2020-Customs dated 29th Oct
Customs Tariff Act, 1975 (51 of 1975), the Central 2020: In exercise of the powers conferred by sub-
Government, on being satisfied that it is necessary section (1) of section 25 of the Customs Act,1962 (52
in the public interest so to do, hereby makes the of 1962), the Central Government, on being satisfied
following further amendments in the notification of that it is necessary in the public interest so to do,
the Government of India, in the Ministry of Finance hereby makes the following further amendments in
(Department of Revenue), No. 50/2017- Customs, the notification of the Government of India, in the
dated the 30th June, 2017. Ministry of Finance (Department of Revenue), No.
In the said notification, in the first proviso, against item 16/2017-Customs, dated the 20th April, 2017.
(ii) of clause (e), for the figures, letters and words “31st In the said notification, in the Table, for the entries in
day of October, 2020.”, the figures, letters and words
column (3) and column (4) at the serial numbers given
“31st day of December, 2020.” shall be substituted.
in column (1) of the Table below, the corresponding
entries at column (2) and column (3) of the Table
~~ Notification No. 40/2020-Customs dated 28th Oct
below shall be substituted, namely:
2020: Seeks to prescribe concessional Basic customs
duty rate on potato imports with the prescribed quota
1 2 3
(TRQ) till the 31st January, 2021. In exercise of the
powers conferred by sub-section (1) of section 25 Win for Patients- Cancer Novartis Healthcare Private
of the Customs Act, 1962 (52 of 1962), the Central 17
Care/ Umaang Limited
Government, on being satisfied that it is necessary in
the public interest so to do, hereby exempts the goods Win for Patients- Cancer Novartis Healthcare Private
18
of the description specified in column (3) of the Table
below, and falling within the sub-heading or tariff item Win for Patients- Cancer Novartis Healthcare Private
19
of the First Schedule to the said Customs Tariff Act, Care/ Umaang Limited
1975, as are specified in the corresponding entry in Win for Patients- Cancer Novartis Healthcare Private
column (2) of the said Table in such quantity of total 20
imports of such goods in a financial year, as specified
in column (4) below (herein after referred to as the Win for Patients- Cancer Novartis Healthcare Private
21
‘tariff rate quota (TRQ) quantity’), when imported into Care/ Umaang Limited
India, from so much of the duty of customs leviable Win for Patients- Cancer Novartis Healthcare Private
22
thereon under the said First Schedule as is in excess Care/ Umaang Limited
of the amount calculated at the rate specified in the
Sutent Patient Assistance Pfizer Products India
corresponding entry in column (5) of the said Table 43
Programme - STAR Private Limited
(herein after referred to as the In-quota tariff rate).
Crizalk Patient Assistance Pfizer Products India
Sub– Tariff In-quota 44
Description Condition Programme - STAR Private Limited
heading or rate quota tariff
of goods No.
tariff item quantity rate Inlyta Patient Assistance Pfizer Products India
45
Programme - STAR Private Limited
10,00,000
0701 Potatoes 10% 1
MT Palbace Patient Assistance Pfizer Products India
46
Condition Programme - PRERNA Private Limited
Condition
No
Enbrel Patient Assistance
47 Pfizer Limited
(a) The TRQ is allotted to the importer by the Programme
Directorate General of Foreign Trade, in accordance
with the relevant procedure as specified in the Hand Xeljanz Patient Assistance
48 Pfizer Limited
Book of Procedure 2015-20. Programme
(b) The TRQ authorization shall contain name Genotropin Patient Pfizer Products India
49
and address of the importer, IEC code, Customs Assistance Programme Private Limited
notification No., sub-heading or tariff item as
1 applicable, quantity and validity period of certificate. Atgam Patient Assistance Pfizer Products India
50
Programme Private Limited
(c) The TRQ authorization shall be issued
Aromasin Patient Assistance Pfizer Products India
electronically by the Directorate General of Foreign 51
Trade and transmitted to ICES system. Programme Private Limited
(d) Imports made against the TRQ shall be allowed Campto Patient Assistance Pfizer Products India
52
only upon debiting electronically in the ICES system Programme Private Limited

STATUTORY UPDATES
� Circular No 44/2020 dated 8th Oct 2020: Procedure � Circular No. 48/2020-Customs dated 27th Oct 2020:
for inspection of ICDs/CFSs/AFSs. Manufacturing and other operations undertaken in
bonded warehouses under Section 65 of the Customs
� Circular No 45/2020 dated 12thOct 2020: Faceless Act, 1962
Assessment - Measures for timely assessment of Bills
of Entry and clarification on defacement of physical Excise
documents � Notification No. 07/2020 – Central Excise dated
21st Oct 2020: In exercise of the powers conferred
� Circular No.46/2020-Customs dated 15th Oct 2020: by sub-section (1) of section 5A of the Central Excise
Testing of outside samples by Revenue Laboratories. Act, 1944 (1 of 1944) (hereinafter referred to as the
CRCL laboratories are now equipped to test samples said Act), the Central Government, on being satisfied
which are hitherto forwarded to Food Safety and that it is necessary in the public interest so to do,
Standards Authority of India (FSSAI), Central Drug hereby exempts the goods specified in the Fourth
Standard and Control Organization (CDSCO) and Schedule to the said Act, when cleared against a duty
Textile Committee in order to improve proficiency, credit scrip (hereinafter referred to as the said scrip)
ensure optimum utilization of equipment and other issued by the Regional Authority under the Scheme
resources. for Rebate of State Levies on export of garments
Accordingly, the Board prescribes the following and made-ups (hereinafter referred to as the RoSL
guidelines: scheme) in accordance with paragraph 4.01(d) of
(i) As Revenue Laboratories can deal with the the Foreign Trade Policy read with paragraphs 4.97
samples related to Drug Controller, FSSAI & Textile and 4.98 of the Handbook of Procedures from the
Committee, all the customs samples, are preferably whole of the duty of excise leviable thereon under the
be tested in the Revenue Laboratories only. Fourth Schedule to the said Act.
(ii) In case facility to test particular commodity or The exemption shall be subject to few conditions.
parameter is not available in the nearest Revenue
Laboratory, such cases shall be referred to the GST
nearest government laboratory where such facility is � Notification No. 05/2020 - Central Tax (Rate)
available. dated 16th Oct 2020: To amend notification No. 12/
(iii) CRCL, New Delhi shall also function as Referral 2017- Central Tax (Rate) so as to exempt satellite
Laboratory along with other referral laboratories in launch services provided by ISRO, Antrix Co. Ltd
Pharma, Textile & Food. and NSIL as recommended by GST Council in
its 42nd meeting held on 05.10.2020.In exercise of
(iv) Whenever CRCL laboratories are not in a
the powers conferred by sub-sections (3) and (4) of
position to carry out a test, they shall make use of
section 9, sub-section (1) of section 11, sub-section
nearest CDSCO/FSSAI approved laboratories/Textile
(5) of section 15 and section 148 of the Central Goods
Committee.
and Services Tax Act, 2017 (12 of 2017), the Central

Government, on being satisfied that it is necessary in
� Circular No. 47/2020-Customs dated 20th Oct
the public interest so to do, on the recommendations
2020: Contactless delivery of international courier
of the Council, hereby makes the following further
consignments. Representations have been received
amendments in the notification of the Government
by the Board from the Express Courier Industry
of India, in the Ministry of Finance (Department of
for allowing contactless delivery of international
Revenue), No.12/2017- Central Tax (Rate), dated the
courier consignments in lines with the OTP based
28th June, 2017.
contactless delivery being adopted by the domestic
courier companies. The said request is with a view In the said notification, in the Table, after serial
to maintain the required social distancing considering number 19B and the entries relating thereto, the
the COVID-19 pandemic. following shall be inserted, namely:
The OTP based validation will be an alternative
means of obtaining proof of delivery to the existing Satellite launch services supplied by
procedure of taking physical signatures. Thus, the Indian Space Research Organisation,
19C 9965 Nil Nil
Antrix Corporation Limited or New
authorized couriers will obtain the proof of delivery Space India Limited.
either by taking the physical signatures or through
OTP based validation.
The Authorised courier shall maintain the data � Notification No. 73/2020 – Central Tax dated 1st
relating to generation and validation of OTP as a Oct 2020: In exercise of the powers conferred by
proof of delivery for a period of 5 years. The full section 148 of the Central Goods and Services Tax
audit trail of the process shall be made available to Act, 2017 (12 of 2017), the Central Government, on
the officer of customs upon request. the recommendations of the Council, hereby notifies
the registered persons required to prepare the tax

STATUTORY UPDATES
invoice in the manner specified under sub-rule (4) of � Notification No. 76/2020 – Central Tax dated 15th
rule 48 of the Central Goods and Services Tax Rules, Oct 2020:In exercise of the powers conferred by
2017, who have prepared tax invoice in a manner section 168 of the Central Goods and Services Tax
other than the said manner, as the class of persons who Act, 2017 (12 of 2017) (hereafter in this notification
shall, during the period from the 1st day of October, referred to as the said Act), read with sub-rule (5)
2020 to the 31st day of October, 2020, follow the of rule 61 of the Central Goods and Services Tax
special procedure such that the said persons shall Rules, 2017 (hereafter in this notification referred
obtain an Invoice Reference Number (IRN) for such to as the said rules), the Commissioner, on the
invoice by uploading specified particulars in FORM recommendations of the Council, hereby specifies
GST INV-01 on the Common Goods and Services that the return in FORM GSTR-3B of the said rules
Tax Electronic Portal, within thirty days from the date for each of the months from October, 2020 to March,
of such invoice, failing which the same shall not be 2021 shall be furnished electronically through the
treated as an invoice. common portal, on or before the twentieth day of the
month succeeding such month.
� Notification No. 74/2020 – Central Tax dated 15th Provided that, for taxpayers having an aggregate
Oct 2020: In exercise of the powers conferred by turnover of up to five crore rupees in the previous
section 148 of the Central Goods and Services Tax financial year, whose principal place of business
Act, 2017 (12 of 2017) (hereafter in this notification is in the States of Chhattisgarh, Madhya Pradesh,
referred to as the said Act), the Central Government, Gujarat, Maharashtra, Karnataka, Goa, Kerala,
on the recommendations of the Council, hereby Tamil Nadu, Telangana, Andhra Pradesh, the Union
notifies the registered persons having aggregate territories of Daman and Diu and Dadra and Nagar
turnover of up to 1.5 crore rupees in the preceding Haveli, Puducherry, Andaman and Nicobar Islands or
financial year or the current financial year, as the Lakshadweep, the return in FORM GSTR-3B of the
class of registered persons who shall follow the said rules for the months of October, 2020 to March,
special procedure as mentioned below for furnishing 2021 shall be furnished electronically through the
the details of outward supply of goods or services or common portal, on or before the twenty-second day
both. of the month succeeding such month.
The said registered persons shall furnish the details of Provided further that, for taxpayers having an
outward supply of goods or services or both in FORM aggregate turnover of up to five crore rupees in the
GSTR-1 under the Central Goods and Services Tax previous financial year, whose principal place of
Rules, 2017, effected during the quarter as specified business is in the States of Himachal Pradesh, Punjab,
in column (2) of the Table below till the time period Uttarakhand, Haryana, Rajasthan, Uttar Pradesh,
as specified in the corresponding entry in column (3) Bihar, Sikkim, Arunachal Pradesh, Nagaland,
of the said Table. Manipur, Mizoram, Tripura, Meghalaya, Assam, West
Bengal, Jharkhand or Odisha, the Union territories of
Sl Quarter for which details in FORM
Time period for Jammu and Kashmir, Ladakh, Chandigarh or Delhi,
furnishing details in the return in FORM GSTR-3B of the said rules for
No GSTR-1 are furnished
FORM GSTR-1
the months of October, 2020 to March, 2021 shall be
1 October, 2020 to December, 2020 13th January, 2021 furnished electronically through the common portal,
on or before the twenty-fourth day of the month
2 January, 2021 to March, 2021 13th April, 2021
succeeding such month.
Payment of taxes for discharge of tax liability
� Notification No 75/2020 – Central Tax dated 15th as per FORM GSTR-3B: Every registered person
Oct 2020:- In exercise of the powers conferred by furnishing the return in FORM GSTR-3B of the said
the second proviso to sub-section (1) of section 37 rules shall, subject to the provisions of section 49 of
read with, section 168 of the Central Goods and the said Act, discharge his liability towards tax by
Services Tax Act, 2017 (12 of 2017) (hereafter in debiting the electronic cash ledger or electronic credit
this notification referred to as the said Act), the ledger, as the case may be and his liability towards
Commissioner, on the recommendations of the interest, penalty, fees or any other amount payable
Council, hereby extends the time limit for furnishing under the said Act by debiting the electronic cash
the details of outward supplies in FORM GSTR-1 ledger, not later than the last date, as specified in the
of the Central Goods and Services Tax Rules, 2017, first paragraph, on which he is required to furnish the
by such class of registered persons having aggregate said return.
turnover of more than 1.5 crore rupees in the
preceding financial year or the current financial year, � Notification No. 77/2020 – Central Tax dated
for each of the months from October, 2020 to March, 15th Oct 2020:In exercise of the powers conferred
2021 till the eleventh day of the month succeeding by section 148 of the Central Goods and Services
such month. Tax Act, 2017 (12 of 2017) (hereinafter referred to

STATUTORY UPDATES
as the said Act), the Central Government, on the “67A. Manner of furnishing of return or details of
recommendations of the Council, hereby makes outward supplies by short messaging service facility.-
the following amendment in the notification of Notwithstanding anything contained in this Chapter,
Government of India in the Ministry of Finance, for a registered person who is required to furnish a
(Department of Revenue), No. 47/2019 – Central Tax Nil return under section 39 in FORM GSTR-3B or
dated the 9th October, 2019. In the said notification a Nil details of outward supplies under section 37 in
in the opening paragraph, for the words and figures FORM GSTR-1 or a Nil statement in FORM GST
financial years 2017-18 and 2018-19, the words and CMP-08 for a tax period, any reference to electronic
figures financial years 2017-18, 2018-19 and 2019- furnishing shall include furnishing of the said return
20 shall be substituted. or the details of outward supplies or statement
through a short messaging serviceusing the registered
� Notification No. 78/2020 – Central Tax dated mobile number and the said return or the details of
15th Oct 2020:In exercise of the powers conferred outward supplies or statement shall be verified by a
by the first proviso to rule 46 of the Central Goods registered mobile number based One Time Password
and Services Tax Rules, 2017, the Central Board of facility. Explanation. - For the purpose of this rule,
Indirect Taxes and Customs, on the recommendations a Nil return or Nil details of outward supplies or
of the Council, hereby makes the following Nil statement shall mean a return under section 39
amendment in the notification of the Government or details of outward supplies under section 37 or
of India in the Ministry of Finance (Department statement under rule 62, for a tax period that has nil
of Revenue), No.12/2017 – Central Tax, dated the or no entry in all the Tables in FORM GSTR-3B or
28th June, 2017. In the said notification, with effect FORM GSTR-1 or FORM GST CMP-08, as the case
from the 01st day of April, 2021, for the Table, the may be.”
following shall be substituted In the said rules, in rule 80, in sub-rule (3), for the
proviso, the following proviso shall be substituted,
Number of Digits of
Sl
Aggregate Turnover in “Provided that for the financial year 2018-2019 and
Harmonised System of
the preceding Financial 2019-2020, every registered person whose aggregate
No. Nomenclature Code (HSN
Year turnover exceeds five crore rupees shall get his
Code)
accounts audited as specified under sub-section (5)
1 Up to rupees five crores 4 of section 35 and he shall furnish a copy of audited
more than rupees five annual accounts and a reconciliation statement, duly
2 6
crores certified, in FORM GSTR-9C for the said financial
year, electronically through the common portal either
Provided that a registered person having aggregate directly or through a Facilitation Centre notified by
turnover up to five crores rupees in the previous the Commissioner.”
financial year may not mention the number of digits In the said rules, with effect from the 20th day of
of HSN Code, as specified in the corresponding entry March, 2020, in rule 138E, after the third proviso, the
in column (3) of the said Table in a tax invoice issued following proviso shall be inserted,
by him under the said rules in respect of supplies “Provided also that the said restriction shall not apply
made to unregistered persons. during the period from the 20th day of March, 2020
till the 15th day of October, 2020 in case where
� Notification No. 79 /2020 – Central Tax dated 15th the return in FORM GSTR-3B or the statement of
Oct 2020: In the Central Goods and Services Tax outward supplies in FORM GSTR-1 or the statement
Rules, 2017 (hereinafter referred to as the said rules), in FORM GST CMP08, as the case may be, has
in rule 46, for the first proviso, the following proviso not been furnished for the period February, 2020 to
shall be substituted, namely: - “Provided that the August, 2020.”
Board may, on the recommendations of the Council,
by notification, specify- (i) the number of digits of � Notification No. 80 /2020 – Central Tax dated
Harmonised System of Nomenclature code for goods 28th Oct 2020: Seeks to amend notification no.
or services that a class of registered persons shall be 41/2020-Central Tax dt. 05.05.2020 to extend due
required to mention; or (ii) a class of supply of goods date of return under Section 44 till 31.12.2020.
or services for which specified number of digits of In exercise of the powers conferred by sub-section
Harmonised System of Nomenclature code shall be (1) of section 44 of the Central Goods and Services
required to be mentioned by all registered taxpayers; Tax Act, 2017 (12 of 2017), read with rule 80 of
and (iii) the class of registered persons that would not the Central Goods and Services Tax Rules, 2017,
be required to mention the Harmonised System of the Commissioner, on the recommendations of
Nomenclature code for goods or services:” the Council, hereby makes the following further
In the said rules, for rule 67A, the following rule shall amendment in the notification of the Government
be substituted, of India in the Ministry of Finance (Department of

STATUTORY UPDATES
Revenue), No. 41/2020 - Central Tax, dated the 5th application of sub-rule (4) of rule 36 of the CGST
May, 2020. In the said notification, for the figures, Rules would be treated as availment of ineligible ITC
letters and word “31st October, 2020”, the figures, during the month of September, 2020.
letters and word “31st December, 2020” shall be The manner of cumulative reconciliation for the said
substituted. months in terms of proviso to subrule (4) of rule 36 of
the CGST Rules is explained by way of illustration,
� Circular No. 142/12/2020- GST dated 9th Oct in a tabulated form, below.
2020:Keeping the situation prevailing in view of
measures taken to contain the spread of COVID-19 Invoices
pandemic, vide notification No. 30/2020-CT, dated on which
Eligible ITC is
03.04.2020, it had been prescribed that the condition ITC as ITC eligible
made under sub-rule (4) of rule 36 of the CGST Rules per the availed and
Effect of
shall apply cumulatively for the tax period February, provisions by the uploaded
cumulative
of Chapter taxpayer by the
March, April, May, June, July and August, 2020 Tax V of the (recipient) suppliers
application
of rule
and that the return in FORM GSTR-3B for the tax period CGST Act in till due
36(4) on
period September, 2020 shall be furnished with the and the GSTR3B date of
availability
rules made of the FORM
cumulative adjustment of input tax credit for the said thereunder, respective GSTR-1
of ITC
months. except rule months for the tax
36(4) period of
It is re-iterated that the clarifications issued earlier vide September,
Circular No. 123/42/2019 – GST dated 11.11.2019 2020
shall still remain applicable, except for the cumulative Feb2020 300 300 270 Maximum
application as prescribed in proviso to sub-rule (4) eligible ITC
of rule 36 of the CGST Rules. Accordingly, all the March
400 400 380 in terms
2020
taxpayers are advised to ascertain the details of of rule 36
April (4) is 2450
invoices uploaded by their suppliers under subsection 500 500 450 + [10% of
2020
(1) of section 37 of the CGST Act for the periods of 2450] =2695.
May
February, March, April, May, June, July and August, 2020
350 350 320 Taxpayer
2020, till the due date of furnishing of the statement had availed
June ITC of 2750.
in FORM GSTR-1 for the month of September, 2020 2020
450 450 400 Therefore,
as reflected in GSTR-2As. ITC of 55
July 2020 550 550 480 [2750-2695]
Taxpayers shall reconcile the ITC availed in their would be
FORM GSTR-3Bs for the period February, 2020 to required to
August, 2020 with the details of invoices uploaded be reversed
Aug 2020 200 200 150 as mentioned
by their suppliers of the saidmonths, till the due in para 3.4.
date of furnishing FORM GSTR-1 for the month of above.
September, 2020. The cumulative amount of ITC
availed for the said months in FORM GSTR-3B TOTAL 27050 27050 2450
should not exceed 110% of the cumulative value of ITC Reversal required to the extent of 55
the eligible credit available in respect of invoices or 10% Rule
debit notes the details of which have been uploaded shall apply
by the suppliers under sub-section (1) of section 37 Sep 2020 500 385 350 independently
for September,
of the CGST Act, till the due date of furnishing of 2020
the statements in FORM GSTR-1 for the month of
September, 2020.
In the FORM GSTR-3B for the month of September,
It may be noted that availability of 110% of the
2020, the tax payer shall avail ITC of 385 under Table 4(A)
cumulative value of the eligible credit available in
and would reverse ITC of 55 under Table 4(B)(2)
respect of invoices or debit notes the details of which
have been uploaded by the suppliers under sub-section
(1) of section 37 of the CGST Act does not mean that
the total credit can exceed the tax amount as reflected
in the total invoices for the supplies received by the
taxpayer i.e. the maximum credit available in terms
of provisions of section 16 of the CGST Act.
The excess ITC availed arising out of reconciliation
during this period, if any, shall be required to be
reversed in Table 4(B)(2) of FORM GSTR-3B, for Sources:
the month of September, 2020. Failure to reverse
Incometax portal, cbic.gov.in
such excess availed ITC on account of cumulative

(STATUTORY BODY UNDER AN ACT OF PARLIAMENT)
120
INTERMEDIATE AND FINAL EXAMINATION TIME TABLE & PROGRAMME – JUNE 2020 (Merging) AND DECEMBER 2020
PROGRAMME FOR SYLLABUS 2016

ATTENTION: INTERMEDIATE & FINAL EXAMINATION WILL BE HELD ON ALTERNATE DATES FOR EACH GROUP.
INTERMEDIATE FINAL
Day & Date (Time: 10.00 A.M. to 1.00 P.M.) (Time: 2.00 P.M. to 5.00 P.M.)
(Group – I) (Group – II) (Group – III) (Group – IV)
Thursday,
Financial Accounting (P-05) ------------------- Corporate Laws & Compliance (P-13) -------------------
10th December, 2020
Friday, Operations Management & Strategic
------------------- ------------------- Corporate Financial Reporting (P-17)
11th December, 2020 Management (P-09)
Saturday,
Laws & Ethics (P-06) ------------------- Strategic Financial Management (P-14) -------------------
12th December, 2020
Sunday, Cost & Management Accounting and
------------------- ------------------- Indirect Tax Laws & Practice (P-18)
13th December, 2020 Financial Management (P-10)
Monday,
Direct Taxation (P-07) ------------------- Strategic Cost Management – Decision Making (P-15) -------------------
14th December, 2020
Tuesday,
------------------- Indirect Taxation (P-11) ------------------- Cost & Management Audit (P-19)
15th December, 2020
Wednesday,
Cost Accounting (P-08) ------------------- Direct Tax Laws and International Taxation (P-16) -------------------
16th December, 2020
Thursday, Strategic Performance Management and Business
------------------- Company Accounts & Audit (P-12) -------------------
17th December, 2020 Valuation (P-20)
EXAMINATION FEES
Group (s) Final Examination Intermediate Examination
One Group (Inland Centres) `1400/- `1200/-
(Overseas Centres) US $ 100 US $ 90
Two Groups (Inland Centres) `2800/- `2400/-
(Overseas Centres) US $ 100 US $ 90
1. Application Forms for Intermediate and Final Examination has to be filled up through online only and fees will be accepted through online mode only (including Payfee Module of IDBI Bank). No Offline form and DD
payment will be accepted for domestic candidate.
2. STUDENTS OPTING FOR OVERSEAS CENTRES HAVE TO APPLY OFFLINE AND SEND DD ALONGWITH THE FORM.
3. (a) Students can login to the website www.icmai.in and apply online through payment gateway by using Credit/Debit card or Net banking.
(b) Students can also pay their requisite fee through pay-fee module of IDBI Bank.
4. Examination form already submitted by the students for the Intermediate and Final Examinations, June, 2020 session will remain same for the Intermediate and Final Examinations to be held in December, 2020. Students
need not apply again.
5. Students who have submitted examination form for the Intermediate and Final Examinations, June, 2020 session are allowed to add their Group with payment of differential examination fee for appearing in the
Intermediate and Final Examinations to be held in December, 2020.
6. The students who have not enrolled for the Intermediate and Final Examinations, June, 2020 session may enroll afresh by submitting online examination form for December, 2020 term of examination.
7. Last date for receipt of Examination Application Forms is 10 th October, 2020.
8. The provisions of Direct Tax Laws and Indirect Tax Laws, as amended by the Finance Act, 2019, including notifications and circulars issued up to 31 st May, 2020, are applicable for December, 2020 term of examination for
The Management Accountant - November 2020

the Subjects Direct Taxation, Indirect Taxation (Intermediate), Direct Tax laws and International Taxation and Indirect Tax Laws & Practice (Final) under Syllabus 2016. The relevant assessment year is 2020-21. For
statutory updates and amendments please refer to: https://icmai.in/studentswebsite/Syl-2016.php
9. Companies (Cost Records and Audit) Rules, 2014 as amended till 31st May, 2020 is applicable for December, 2020 examination for Paper 12- Company Accounts and Audit (Intermediate) and Paper 19 - Cost and
Management Audit (Final) under Syllabus 2016. For updates and amendments please refer to the link: https://icmai.in/studentswebsite/Syl-2016.php
10. The provisions of the Companies Act 2013 are applicable for Paper 6 - Laws and Ethics (Intermediate) and Paper 13 - Corporate Laws and Compliance (Final) under Syllabus 2016 to the extent notified by the Government
up to 31st May, 2020 are applicable for December, 2020 term of examination. Additionally, for applicability of ICDR, 2018 for Paper-13 - Corporate Laws & Compliance (Final) under Syllabus 2016 refer to relevant circular
in website for December, 2020 term examination by following link: https://icmai.in/studentswebsite/Syl-2016.php
11. For Applicability of IND AS and AS for Paper 5 - Financial Accounting, Paper 12 - Company Accounts and Audit (Intermediate) and Paper 17 - Corporate Financial Reporting (Final) refer to relevant circulars and
notifications in website for December, 2020 term examination in the given link: https://icmai.in/studentswebsite/Syl-2016.php
12. Pension Fund Regulatory and Development Authority Act, 2013 is being included in Paper 6-Laws and Ethics (Intermediate) and Insolvency and Bankruptcy Code 2016 is being included in Paper 13 - Corporate Laws and
Compliance (Final) under Syllabus 2016 for December, 2020 term of examination. Please refer to the link: https://icmai.in/studentswebsite/Syl-2016.php
13. Examination Centres: Adipur-Kachchh (Gujarat), Agartala, Agra, Ahmedabad, Akurdi, Allahabad, Asansol, Aurangabad, Bangalore, Baroda, Berhampur (Ganjam), Bhilai, Bhilwara, Bhopal, Bewar City(Rajasthan),
Bhubaneswar, Bilaspur, Bikaner (Rajasthan), Bokaro, Calicut, Chandigarh, Chennai, Coimbatore, Cuttack, Dehradun, Delhi, Dhanbad, Duliajan (Assam), Durgapur, Ernakulam, Erode, Faridabad, Ghaziabad, Guntur,
Gurgaon, Guwahati, Haridwar, Hazaribagh, Howrah, Hyderabad, Indore, Jaipur, Jabalpur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kalyan, Kannur, Kanpur, Kolhapur, Kolkata, Kollam, Kota, Kottakkal
(Malappuram), Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai, Mysore, Nagpur, Naihati, Nasik, Nellore, Neyveli, Noida, Palakkad, Panaji (Goa), Patiala, Patna, Pondicherry, Port Blair, Pune, Raipur,
Rajahmundry, Ranchi, Rourkela, Salem, Sambalpur, Shillong, Shimla, Siliguri, Solapur, Srinagar, Surat, Thrissur, Tiruchirapalli, Tirunelveli, Tirupati, Trivandrum, Udaipur, Vapi, Vashi, Vellore, Vijayawada,
Vindhyanagar, Waltair and Overseas Centres at Bahrain, Dubai and Muscat.
14. A candidate who is fulfilling all conditions specified for appearing in examination will only be allowed to appear for examination.
15. Probable date of publication of result: To be announced in due course.
* For any examination related query, please contact [email protected]
CMA Kaushik Banerjee
www.icmai.in
Secretary
F
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Volume 9/ Issue 2 / December 2019/ Pages 116/ `200

Volume 9/ Issue 3 / January 2020/ Pages 116/ `200

• COVID-19 and its impact on Indian MSMEs

• Innovation and Digitalization: Changing the MSME landscape

• RestartIndia: an Advisory Platform for MSMEs

• Future of Banking post-Covid 19 pandemic

• Credit guarantee to MSMEs in support of Atmanirbhar Bharat Abhiyaan

Banking Sector for • Loan Moratorium: an Aid to Ease Financial Stress

• Cost Benefit Analysis (CBA) in Healthcare Industry

• Price-Transparency in the age of COVID-19: The growing importance of Cost Accounting

• Social, Political and Legal Dimension of Women Empowerment

• Dynamic Role of Women in the Workforce

Workplace: Stepping • Factors concerning female participation in the Corporate Sector

DIRECTORATE OF JOURNAL & PUBLICATIONS

8 The Management Accountant - November 2020 www.icmai.in

download your digital issue now

Subscribe through Magzter, eZineMart, Magazinos, Readwhere & Readly

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examination for the foundation course are some

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MEMBERS IN INDUSTRY COMMITTEE

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CMA (Dr.) K Ch A V S N Murthy

Transformation, Down the Memory Lane, Budget highlights

The following publications are being published regularly Happy Diwali!!!

The Management Accountant journal is now available in

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For information on subscription and

Full Page 210 x 267 SM.indd 1 1/21/2020 3:38:32 PM

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marwar.magazine Marwarmagindia marwar_india

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DOUBLING THE FARMER’S

CMA Ranjan Gunjal

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OFFICE BEARERS OF WIRC OF ICAI OFFICE BEARERS OF EIRC OF ICAI

CMA Harshad S Deshpande - Chairman CMA Ashis Banerjee - Chairman

OFFICE BEARERS OF SIRC OF ICAI OFFICE BEARERS OF NIRC OF ICAI

CMA S. Papa Rao - Chairman CMA Harkesh Tara - Chairman

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Surmounting the unparalleled and

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The Institute of Cost Accountants of India

Call for Research Papers/Articles

Guidelines to submit full Paper

~~ Professional Skepticism: A critical element of Covid era Audit

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