BCAS President CA Suhas Paranjpe 's Message for the Month of September 2020

        Dear Members,

Many things have happened all around us in the recent past. On 20th August, the BCAS along with the BCA Foundation hosted the Fifth Narayan Varma Memorial digital event jointly with other organisations. Everything happened virtually in the true spirit of ‘the show must go on’ and following the positive attitude of the Late Narayanbhai Varma. In the panel discussion on Covid-19, the participants included a physician, a psychologist and a Covid survivor CA professional who shared their thoughts and experiences. As per tradition, the BCA Foundation recognised the social contributions of its CA nominee Sanjay Hegde and felicitated him.

This year, the volunteers of the BCAS and the BCA Foundation could not visit Dharampur for the annual tree plantation programme. This initiative was started in 2011 with the planting of a mere ten trees; but it has now gone on to over 300 trees. We started with seven volunteers visiting the place and now it is over 40 with a combination of young and old. And so, on 28th August we arranged the tree plantation event via a digital meeting with the trustees of the Sarvodaya Parivar Trust with video presentations of the Dharampur site. We followed ‘Work from Home’ here, too, in an innovative manner with our ‘BCAS Green Warriors’. We felicitated the volunteers who planted trees in and around their localities and carried out tree plantation this year although they were working from home.

In the West, tech companies have surged past every other industry in this digital transformation regime amplified by the Covid-19 situation. Recently, the world's most famous equity benchmark, the Dow Jones Industrial Average of USA, replaced the world's biggest company of the last decade, viz., Exxon Mobile Corp., from the index list with a technology company. This reflects the steady challenges faced by commodity companies in the American economy; the trend is similar in other economies, too.

‘Retire from your job, but never retire your mind.’ These are golden words. Retirement is a stage of life that could be a new beginning with new initiatives on the family front, the social front, or in one’s personal space which might have been missed during the days of one’s employment. The person who plans his retirement years in advance – financially as well as post-retirement new initiatives – is prudent and wise.

On Saturday, 15th August, on the occasion of India's 74th Independence Day, the 39-year-old M.S. Dhoni (MSD) bid adieu to international cricket and thus called curtains on his illustrious career spanning 16 years. It was, as we know him well, done in his normally cool, silent style, with very few words.

‘Looking at you as just a sportsperson would be an injustice. The correct way to assess your impact is as a phenomenon! Rising from humble beginnings in a small town, you burst onto the national scene, made a name for yourself and, most importantly, made India proud,’ – this is how the Hon. Prime Minister, Mr. Narendra Modi, wished the hero of the Word Cup. How aptly the person and the situation are portrayed in these few words. All Indians would always be proud of MSD and he would be an inspiration to the next generation. I wish and hope that post-retirement he would take up and initiate the setting up of a training academy to create more MSDs for Indian cricket.

Recently, the Reserve Bank of India (RBI) published its annual report 2019-20 (year ended 30th June, 2020). On a review of the report and certain comments therein, I, as an accounting professional, observed three key perspectives – accountants, auditors and economics / investment.

The accountant's perspective 
RBI’s lower income and higher provisions resulted in the transfer of lesser surplus to the government. It fell to Rs. 57,000 crores from Rs. 1.76 lakh crores in the previous fiscal. The increase in provisions towards Contingency Fund from Rs. 64 crores in the previous fiscal to Rs. 73,615 crores was the Covid-19 effect on the RBI financials.

The auditor's perspective 
The cases of major frauds reported in 2019-20 added up to Rs.1.85 trillion, more than double the previous year's figure. Large credit frauds were the major component, though low-value online cybercrimes arising out of net transactions are a cause of worry, too.

Economic / investment perspective 
The moratorium for loan repayments with the infusion of more than Rs. 3 lakh-crore guarantees by the Central Government has boosted the morale of the MSME sector where banks have started disbursing funds to help the sector recover from the adverse impact of the pandemic and migrant labour.

The sharp cut in corporate tax announced in September, 2019 has been used by the corporates to reduce debt and build up cash and other current asset balances rather than a fresh CAPEX cycle. This resulted in a weakness in private investment demand and capital expenditure in the economy.

In the present context of rising inflation and slower growth, monetary policies cannot be traditional and book-bound but progressive and innovative. The report narrates in detail the various measures initiated by RBI including progressive reductions in the Repo rate and the various windows to infuse additional liquidity to lead the economy onto the path of growth.

Come September and let it bring changes much awaited and longed for. May I close this page by requesting you to visit our site bcasonline.org for extremely relevant and innovative events in the month of September, 2020, such as M&A – Master Class, Brand Building by professional firms and so on? You may also visit the BCAS Global social media handle for the events missed, if any.

With Best Regards,

CA. Suhas Paranjpe

President

 

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