cs newsletter fbd 090311

March, 2011 FbdCS e-Newsletter

THIS IS MAGIC EYE FOR FARIDABAD. NEW GATEWAY FROM

DELHI TO FARIDABAD. THE ELEVATED FLYOVER HAS EASED

OUT DIFFICULTIES AND FARIDABAD IS READY TO REGAIN

LOST GLORY IN FORSEEABLE FUTURE.

Faridabad Chapter

FbdCS e-Newsletter March 2011

For Private Circulation Only


Information Technology Solutions

(Speaker is being welcomed with flower bouquet – L to

R CS Lipika Arora, CS Praveen Ranka, CS Jitender

Kumar and CS Vineet Chaudhary, Regional Council

Member of NIRC of ICSI)

(Past Chairman Mr. Rakesh Kashyap being felici-

tated – L to R , CS Rakesh Kashyap, CS Chandra

Shekhar Pandey, CS Sonia Arora, CS Anil Singh)

(Inaugural Session, Budget Seminar (28.02.2011)– L to

R , Mr. Anil Chaudhary, (Jt. Director, Dept. of Ind. &

Commerce, Govt. of HR. ) , CS Ajay Garg, CA Arvind

Singal, CS Hitender Mehta

(Budget Seminar on Budget (28.02.2011)– L to R ,

CS NK Goel, Mr. Anil Chaudhary, (Jt. Director, Dept.

of Ind. & Commerce, Govt. of HR. ) , CS Ajay Garg)

A Cross Section of Audience

Budget Seminar (28.02.2011) Group photograph of participant at 4

th SIP along-

with Mr. Rahul B. (Chairman NIAM), Mr. Vinit Sikka

(Vice Chairman Faridabad Chapter) Mr. Bharat

Bhushan


Message from Chapter Chairman

CS Ajay Garg, faridabad

The Ambition!

Dear Professional Colleagues, Initiation of monthly e-Newsletter from very first month itself was big challenge. The ‘Team Faridabad’ (TF) succeeded in its attempt. The next challenge would be to ensure timely deliverance of e-Newsletter month after month and improvise quality and content on regular basis. E-Newsletter has given face to Faridabad chapter. The chapter wishes to be one of the best five center in NIRC in current year. To fulfill the dream, course of action has been drawn in the form of six questions for the year 2011.

Can TF provide programs to cover 20 credit hours ?

Can TF attract sponsorship for three of its program ?

Can TF release all 11 issues of FbdCS e-Newsletter on time?

Can TF create 3 OCC resulting into addition of 500 new stu-dents?

Can TF successfully organize one residential MSOP (SMTP) ?

Can TF achieve feat of ‘foundation stone laying ceremony’ ?

These are only initial months. Annual activity calendar is also just like one day cricket match. Scoring in first three months will set the ball roll-ing. Maintaining the pace in the months of May to September will de-cide score of ‘TF’. Festival and marriage season towards the end of year slows down program rate just like run rate when lower order bats-men are at crease. Variety of new initiatives and programs are lined up during the year 2011. TF wish to achieve five new initiatives during the year. Two of these have already happened. Second being ‘Half Day Budget Seminar’ on Budget Day itself. Attendance in the programs is very encouraging. The challenge for the year will be achieve magic figure of century in one of the program! Can TF achieve unattainable feat of century in one of its program? Will TF be able to re-galvanize members of Faridabad chapter?? Will TF be able to contribute to NIRC and ICSI by way of giving at least one good idea during the year??? Results are not in the hands of TF! But efforts, YES, TF promise to make all out efforts to start golden journey of chapter Faridabad of NIRC of ICSI!! Join actively and be part of history in the making!!!

INDEX

Monthly Glimpses February – 2011

From the desk of the Chapter Chairman

From the Desk of The Editor

Women Company.. Thought Sharing

Practicing Mantra Non Professional….

Mentoring Mantra Cultivating….

New Practicing opportunities CIC…..

Life Beyond 383A Career as Risk …

Health of Wealth Use of Debt as Crop…

Activities Round up Information Galore

Bouquets and Brickbats From the readers

Experience Sharing Aha! CS………

Quote Martial HoW…..


Dear Colleagues, With the release of first monthly e-newsletter on 9

th evening in the

month of February, 2011, your chapter achieved a milestone of being first to do so in NIRC! Congratulations to all the company secretaries of Faridabad. Initial response about presentation and content quality has yet to sink in with Team Faridabad!! The fragrance of your encouraging words has resulted into spring in my feet!!! The next challenge would be to maintain continuity, timely deliverance and im-proving quality with each new edition. All of you are once again in-vited to share your views, thoughts, articles, write ups, ideas, experi-ences, anecdotes, etc. The Team Faridabad dreams:

1. Faridabad Chapter attaining enviable heights in Northern

Region; 2. To interact and exchange notes with local bodies of entrepre-

neurs and industrialist. 3. To entice other chapters by way of creating vibrancy and healthy

competitive environment; 4. Feeling of belongingness among company secretaries of

Faridabad;

In February, Faridabad Chapter attained another milestone by way of organizing ‘Half Day Budget Seminar’ on the Budget day itself. Convincing and getting consent of the speakers was challenge but the same was successfully met. The seminar went very well and was appreciated by all and sundry. The speakers from top consulting firms were too happy at the end and congratulated ‘Team Faridabad’ for attaining the feat! Chapter Chairman announced that next year, we will move more closure and will arrange Live Demonstration on Big Screen and Panel Discussion just after Budget. Will ‘Team Faridabad’ be able to achieve the impossible? The answer lies in future! I have my own doubts! You may also have some doubts and have right to have them. But somewhere inside, I am personally convinced that something extraordinary is going to happen at Chapter level. Be ready for all the excitement in the months to come. Waiting to meet you on Holi Milan on 15

th March, 2011!

Yours ever!

CS K. B. Mudgal

TEAM FARIDABAD

CS Ajay Garg, Chairman CS Vinit Sikka, ViceChairman CS Rajni Aggarwal, Secretary CS N. K. Goel, Treasurer CS P. C. Jain, Member CS Praveen Ranka, Member CS K.B. Mudgal, Member CS Prashant Khattry, Co-opted member CS Sunil K. Nagar, Co-opted member And All Company Secretaries either working or residing in Faridabad and Palwal

===============================

For First edition of FbdCS e-Newsletter:

http://www.icsi.edu/faridabad

For Contact Detail updation of yours and your CS friends, send e-mail at : [email protected]

================================

Disclaimer:

Views and other contents expressed or provided herein

need to be construed as views of the individual. To large

extent, the Chapter agrees to the thoughts expressed

herein, still the readers are advised to take all the

precautions while initiating any activity on the basis of

thoughts expressed herein. Faridabad Chapter do not owe

any responsibility.

mailto:[email protected]


Women Company Secretaries – Thought Sharing Regular Feature

Daily Challenges as Professional

CS Sonia Arora, faridabad

Mob: 9873488414, E mail: [email protected]

INTRODUCTION With each passing year, percentage of women company secre-taries is increasing. In Practice as well as in job, female company secretaries are increasingly showing their mettle. The orthodox mindset in the Indian society makes it difficult for work-ing women to balance her domestic environment with the professional life. In some families, it may not be accept-able to work after six o’clock. Those families that

JOURNEY AS A WOMEN COMPANY SECRETARY Role of Company Secretary is highly professional – comprising corporate governance services; corporate secre-tarial services; secretarial / compliance management, certification; corporate legal advisory services; representation services; public issue, listing and securi-ties management, etc. Every time you need to play a different role but you need to remember that corporate world is emotionless do accept these working hours may experience considerable anxiety every day about a women’s safety while traveling. Social psycholo-gists believe that in order to manage well both family and home they need to possess dual personality by way of assuming a playful and sparkling character at work – resulting into wider acceptance among male workers whereas at home they are expected to be more reserved.

where there is no value for your emo-tions. Besides having successful track record you face with multiple challenges at every stage of your carrier that affect working efficiency and sometimes affect even personal traits and family commit-ments. The challenges of life arise either from the attitude of the society or working environment faced by the women com-pany secretaries.

RELATIONSHIP WITH COLLEAGUES Even after proven instances, the bosses are always in doubt whether she would be able to handle male subordinates, take independent decisions, cope with crisis and manage her duties before promoting women to next higher level.

PROBLEM OF TRANSPORT For instance for a Faridabad based Women Company Secretary having job opportunities in Greater Noida options are either to re-locate there or to carry personal vehicle. Either of the decision has inherent problems. In more than ninety percent cases, neither of the two happens and opportunity loss is the only option because of many ifs and buts.

PROBLEM OF BULLYING Workplace bullying usually include things like dirty jokes, ugly rumors being spread about you, being threatened or criticized or overloaded with extra work.


One needs to learn the art of selective response to such awkward situations. Otherwise these incidents will badly af-fect you as well as your family mem-bers.

PROBLEM OF DISCRIMINATION Typically when we join new organization we face discrimination in more than one way. Local touring, visiting the govern-ment offices, out station touring, out na-tion touring, touring with boss and so on. Whatever you want may not hap-pen and what you don’t want that hap-pens.

DUAL RESPONSIBILITY The managing both the front is bit eas-ier in joint family but in nuclear family this is near to impossible. The reliable domestic servants - I don’t know where all have gone. Though more and more women are coming out of home to sup-port their families financially and fulfil their individual dreams but this out-bound movement has its own tangible and intangible costs. Because their role in the family has not undergone much change.

RESTRICTIONS ON MOVEMENT In most of the cases, the freedom of movement of the working women is restricted. She is allowed only to go to the place of work. If she is late by half-an hour, she is answerable to either father or husband or son. In case of husbands job being transferable the career never takes off in true sense. In bound visits of outstation relatives, un scheduled vacations in schools and colleges, attitude of spouses, always probing colleagues, never understand-ing bosses, vibrant corporate world, fast changing working environment, need of constant updation, and many more. Life is not bed of roses and as Women Company Secretary, it was never and can never be ed of roses.

CONCLUSION This does not mean that women com-pany secretaries don’t like corporate world. But little bit of courtesies at work place and at home will make the whole picture rosier. We are here by choice not by chance. But give us chance and healthy working environment, don’t give preferred treatment but also don’t pin-pricks, we are capable to deliver the results as Company Secretaries in job as well as in practice. Ms Savita Trehan, Practicing Company Secretary of Faridabad is role model. The way she has scaled the ladder of success is worth emulating. Each of us has inbuilt capabilities to succeed. The questions are: (1) whether journey to success will be sweet and memorable! (2) Whether family members will admire the balanc-ing exercise!! (3) Whether next genera-tion will excuse us for being with them for shorter time!!! If these three things happen then journey as women company secretary will become bed of roses and fragrance of that will be felt by all near and dear ones!


Practicing Mantra Regular Feature

Non Professional Friends and CS Practice

CS Ajay Garg, faridabad


FRIENDS AND HUMAN PSYCHOLOGY

There is a saying that true friendship blossom only in classroom. Though ex-ceptions are always there but exceptions will always remain exceptions.

Recall the moment when you meet any of your childhood friend. Joy of those pre-cious moments is altogether different. The selfless attitude towards them by all of us is praiseworthy. The moment, we are told that one of our school / college friend has attained extraordinary success, we feel proud as we ourselves have achieved that success. Have you ever analyzed mutual and dormant expecta-tions from childhood friend?

Usually non-professional friend fails to understand:

What we actually do?

We are masters at what?

How can he take advantage of our knowledge?

Most likely, he ends with the conclu-sion that perhaps he is too small to avail our services; or He will never require services provided by us or we are of no use to him.

Have you ever thought how many new clients, in your lifetime, you will give to your shopkeeper friend who offered cer-tain concessions to you? At least one good client in life time! And who knows that may result into chain reaction be-cause you are praising him as a client!!

Let us take one practical example.

Part I – Mr. Company Secretary visits his non-professional childhood friend at his shop, say readymade garment shop. What are the expectations of Mr. CS? He should get:

Best quality fabric;

At least token discount on the price offered to other consumers because he is childhood friend;

Special attention in the form of offer to take tea/coffee/cold drink, etc;

Admiration as add on - because he is more qualified.

But while leaving the counter, most of us leave our less educated friend con-fused about our utility to him.

CAN IT HAPPEN VICE VERSA???

Part – II Can we turn this situation to our advantage? Yes, just think, we can do so. Just by answering three under mentioned questions, we can convert our non-professional friends into unre-lated campaigner of our practice.

How can we serve our friend?

How can we relate ourselves to

masses?

What service is required by

masses not classes?


Can we file Income Tax Returns of indi-viduals – our own, our relatives, our neighbors, our friends? Why not?? Yes, Mr. CS can certainly do so. You need just to keep – One good Income Tax Ready Reckoner; Hard Copies of In-structions of various ITR forms; Forms for Permanent Account Number; Forms for depositing Tax; friendliness with re-lated website www.incometaxindia.com Total Investment: Not more than Rs. 1000/-. Even if you are able to file your return, you have achieved full pay back.

Entice Non-Professional Friends – Follow the simple things:

Just file Income Tax return;

Do not expect and accept money from him;

Let him become your admirer;

Let him feel obliged as you felt;

Learn this lesson well and implement carefully in your practicing career. See the magic within three years of your practice. Enjoy:

Additional wealth;

Admiration by your non-professional friend;

Uncompetitive edge in the circle of your childhood friend;

Your usefulness to the masses near to you;

Direct clientele;

In 99% cases, he will bring at least one client without being asked to do so; and

Who knows what would be the chain reaction because he cam-paigned for you as end user of ser-vices provided by you.

Mentoring Mantra Regular Feature

Cultivating New Relations Day in and day out, one meets new persons in his life. Cultivating new relations is desired by one and all but very few are able to do so suc-cessfully. Five steps can help you to improvise the success ratio.

Step 4: Send remembrance sms or e-mail – Invite at your place and share some thing which happened at that common place;

Step 5: Share your latest feat

(howsoever small it may be).

Step 1 : Exchange visiting card (always keep your visiting card ready); Step 2: Notice something posi-

tive about the person in very first meeting and speak out that positive;

Step 3 : Note down mobile number and e-mail Id;

Follow the five step process and enjoy ever expanding circle.

http://www.incometaxindia.com/


New Practicing Opportunities Regular Feature

Registration of CIC & Regular Compliances

CS Chandra Shekhar Pandey, Faridabad


Very recently, the concept of Core Invest-ment Companies (CIC) has taken shape. This has resulted into new practicing op-portunity for Company Secretaries. Core Investment companies are those which have their assets predominantly as in-vestments in shares for holding stake in group companies but not for trading, and also do not carry on any other financial activity. Till now, Non Banking Finance Company (NBFC) was the only option under RBI Act. This is expected that every business group having three or more working company will have one CIC by the end of year 2013. RBI has classi-fied CICs systemically important and not systemically important by size. Non-deposit taking, systemically important CICs are required now to register them-selves with the RBI even if they have been advised in the past that registration was not required. This concept preferably suitable for business houses having more than 2 companies. With the tool of CIC, promoter group would be in better posi-tion to have control on group companies. In pursuance of cultivation of profession and keep itself updated a professional must understand utility and the procedure of registration of CIC. Periodical and event based compliances will open up gateway for regular flow of work in fore-seeable future.

In continuation of Guidelines issued by RBI on 12

th August, 2010 RBI had is-

sued Directions vide Notification No. Notification No. DNBS. (PD) 219 / CGM(US)-2011 dated January 5, 2011 known as Core Investment Companies (Reserve Bank) Directions, 2011 gov-erning registration and compliance in relation to Core Investment Company (CIC) that is to say a type of non-banking financial company (NBFC) car-rying on the business of acquisition of shares and securities subject to satis-faction of certain conditions.

What are the avenues for Profes-sional? For the purpose of registration, CIC are categorized as companies having an asset size of Rs.100 Crore and above would be treated as Systemically Impor-tant Core Investment Companies (CIC-ND-SI), which raises or holds public funds and Others having asset size less than Rs. 100 Crore will be in the basket of Normal CIC. As per the directions, CIC with an asset size of less than Rs. 100 Crore has been exempted from ob-taining Registration under section 45-IA of the RBI Act, 1934. But intimation about the same is likely to be asked by RBI.


All existing companies having an asset size of more than Rs. 100 crores are required to apply for registration with RBI for obtaining the COR within a pe-riod of six months from the date of Noti-fication. Existing companies having an asset size of less than Rs 100 crore are required to apply to RBI for COR within three months of the date of achieving a balance sheet size of Rs 100 crores. How to get CIC registered? The registration of CIC is done with the jurisdiction of Regional Office of RBI in whose jurisdiction registered office of the company is situated. Application form can be downloaded and submitted along with supporting documents as indicated in the application form itself. The important point which one should consider while filing the application form are :-

If the company had been advised by Reserve Bank of India in the past that it did not require registration by virtue of being a Core Investment Company, the letter in original should also be enclosed.

If the company has ever defaulted in timely repayment of deposit and payment of interest, a list of all such pending cases and the action taken in respect of each case should be furnished..

Periodical and Event based Compli-ances The matter will not end just with the regis-tration of CIC. Periodic and event based regulation of CIC will result into number of periodic and event based compliances re-sulting into regular flow of work. CIC are likely to become all the more important and promoters will aggressively look for compli-ance of the guidelines. Here lies the oppor-tunity for new and regular professional ser-vices. The particulars/information to be

furnished in Annex II of the applica-tion should be based on figures as disclosed in the last audited balance-sheet. However, in the case of a company incorporated after March 31, of the particular year in which the application is being made, such particulars/information should be based on the balance-sheet as on a date, falling within thirty days pre-ceding the date of application.

In case the company has changed its name earlier, a list of all the ear-lier names of the company and date/s of change together with the names of Chief Executive Officer and Chairman at the time of change of name should be furnished.

If the company was registered with Reserve Bank of India as an NBFC, the Certificate of Registration in original should be enclosed.


Life Beyond Section 383A Regular Feature

Career as a Risk Manager

CS K.B. Mudgal, faridabad

Mob:09711873973, E mail: ravi.mudgal

THE DILEMMA

The dream of becoming Company Secre-tary is very fascinating. After getting membership of ICSI, the dream gains towering heights. It seems that first and last choice of every member is to get cov-eted designation of Company Secretary in a big company. Fascination to the des-ignation to Company Secretary is growing with each passing year. As a fresher Company Secretary every body prefer to work as Company Secretary in a listed company, in absence of such opportunity in a closely held company, and in ab-sence of such opportunity in a practicing firms and so on. But the moot question is: Is it the time to spread the wings? Is it the time to explore the unexplored territo-ries?? Will it be commercially beneficial to sacrifice the designation of Company Secretary and look for better opportuni-ties in other departments??? Whether ICSI member be able to get desired re-spect while working in other departments of a commercial organization???? One of the commercially viable career is: ‘Career as Risk Manager’

including structure, ownership, stake holding, holding-subsidiaries relation-ship and many other corporate issues still remain pariah to other professionals and they fail to understand the intrica-cies of corporate houses. Because of this reason, Company secretaries are gaining acceptance as key member of risk management team. Increasingly, banks and insurance companies are deploying more than one company sec-retaries in risk assessment team at their corporate and regional offices. Starting salaries are better than salaries offered to fresher company secretaries. But mental block of fresher company secre-taries need to be demolished.

RISK MANAGER – OPPORTUNITIES AND CHALLENGES The opportunities as risk manager lie in banking, insurance, mutual fund, credit rating and other related industries. A Risk Manager is the person who ana-lyzes not only the risk in connection with an investment but also has caliber to guide the management in about the best business opportunity in the arena of assessment of capabilities client in relation to borrowing, lending, future business prospects, future growth and many more. A risk manager analyzes various policies and procedures to opti-mize return on investment by derisking the loss of principal. Here the questions are:-

RISK MANAGER - INTRODUCTION A risk manager is an important to the viability of any business. The two most common places to find risk managers are in financial and insurance industry. These two sectors stand to benefit the most from the expertise that a risk man-ager can provide. Corporate intricacies

http://www.ehow.com/business/


1. Why company secretaries shall work as Risk Manager?

2. What is the future of company sec retary as risk manager?

3. Where he stand vis-à-vis core Com pany Secretary in career?

Answers are: Company Secretaries are better positioned to understand complex ownership structure, net worth of the group and related questions; the future is dependent upon performance, learn-ing and additional qualifications ac-quired in initial years of career; better at every stage because compulsory out-sourcing of share department, 100% computerization of MCA and online fil-ing with Stock Exchanges has taken sheen off the career of core Company Secretary. Today a company secretary even in a listed company is boss with-out assistants. Company Secretary car-ries the same designation throughout his career, remains in back office bar-ring few exception whereas as risk manager the person is part of vibrant department. You have to agree that vi-brancy matters the most. In the field of risk management, as a company secretary one starts career as a risk assessor in the Public/ private Sector. Before starting the carrier one should have complete knowledge about future growth. Demand and supply also plays its role in deciding compensation offered by the industry. Demand out-scores supply in the field of risk man-agement. There is heavy shortage not only of risk assessor but also of the pro-fessionals ready to move to this depart-ment. This is so because of ignorance about the exciting prospect in the field. RISK MANAGER – JOB PROFILE They usually review the current and fu-ture risk – taking into account manage-ment and entrepreneurial polices,

in-depth analysis of assets and liabili-ties, earning potential, probability of loss; ownership patterns; trends of in-dustry, domestic and global situations; financial or security risk to the net as-sets. As a member of Risk Management Department, company secretary has to focus on various patterns, trends and information which is in public domain and beyond that also. One of my co trainee passed out CS exam with me. For first six months, he just looked for suitable opportunity as Company Secretary. Then one fine day, he joined in Yes Bank Limited in Risk Management Department. His job pro-file is altogether different but he is en-joying the same. Initial start up salary was better than many of us. His incre-ment was also very encouraging. With-out being asked, his performance will be keenly watched. Though sometimes, he misses company secretary’s profile but on most of the days he is happier and his teammates also admire his level of knowledge. LIFE BEYOND SECTION 383A Learning is a part of life. There is al-ways a space for learning, re-learning and unlearning. The economic and commercial world is as uncertain as to-morrow. The risk management field is an essential tool to measure uncertain-ties. Because of versatile knowledge, company secretaries are being liked by risk management industry. Will we also embrace risk management industry? Will we CS be able to win their confi-dence? The answer to these questions is itself uncertain. Performance of my friend and other company secretaries will be keenly watched not only by us but also by risk management industry itself. Wish you best of best my friend! Your appetite for taking challenge is welcome change!!


Health of Wealth Regular Feature

Use Debt as Crop not as a Trap

CS Nitin Kumar, Gurgaon


Borrowing has become indispensable these days. People borrow either to cre-ate assets that would result into bumper crop or to spend on impulsive purchasing that would lend them into a trap. Every planned borrowing, to create some appreciating asset, is welcome and im-proves health of wealth. On the other hand, every borrowing to satisfy our pas-sions and temptations leads to deteriorat-ing health of wealth. It means depending upon utilization the same debt may prove fruitful or harmful. From individual’s point of view housing loan is the only productive loan. In similar way, life saving loans for critical illness or accidental hospitalization is necessity. Any other loan which does not increase earning potential is a serious problem and may severely harm health of existing or futuristic wealth. We must avoid accumulating debt at any cost. Wayward spending habit leads into a debt trap and it is very difficult to come out of debt trap. It takes a lot of time to repay debts and during this period one may miss big opportunities. Prevention is always better than cure. One must avoid falling into a debt trap. Any default on re-payment results into dent in credit worthi-ness. As a professional, one must respect and protect his credit worthiness at all cost. Some of the tips are reproduced herein for the benefit of one and all:-

CLEAR OFF THE DUES ON OR BE-FORE THE DUE DATE One of the modern way to fall into debt trap is to accumulate credit via credit cards. Initially, people fail to understand a credit card statement. Minimum amount due is usually misinterpreted and people think that they have to pay just 5% of the due amount and they do not realize that the company charges very high interest on the remaining amount. Not only interest they charge in more than one ways. One should care-fully clear off the dues before the due date that also in a way that payment reaches the card provider before due date. Lure of multiple credit cards is very dangerous and surest way to fall into debt trap. CHANGE THE MIND SET Gone are the days when loan taking was social taboo. Modern mantra is: ‘consume first and pay later’. While following this theory, one must take care of unplanned expenditure in fore-seeable future, such as illness, acci-dent, loss of job, no increment, family expansion, casualty in family, social ex-penditure in the form of marriage, etc. Take care. There is need to change the mindset. The mantra needs to be re-written: ‘Consume first but not very fast’ or ‘Consume only surplus in-come not full future income’ or

mailto:[email protected]


‘Consume first and pay faster’. While taking the loans, one should be very careful of the jargons such as flat or last payment first or foreclosure pen-alty and so on. LIMITED EMIs Periodicity of loan should be restricted to minimum possible. Multiple consumer loans shall be avoided at all costs. Long term loans or multiple loans are not very wise decision. Recession in the econ-omy or physical / mental incapacitation can result into a salary cut which may upset repayment capabilities. Interest on interest shall be treated as dragon. Ideally EMIs shall be restricted to 70% of the surplus income and rest 30% of the surplus income shall be left for un-planned expenditure. SHORT TERM PLANS One must have short term financial plans also along with long term plans. Long term plans like plans for daugh-ter’s marriage, old age pension, retire-ment planning are incomplete unless aligned with short term planning like further studies, dream vacations, hous-ing and vehicle needs. Saving shall be properly invested. Systematic invest-ment plans are must for each one of us.

AVOID IMPULSIVE PURCHASES Most expert’s feel that one should not borrow at all. One should wait a little longer to fund the purchase rather then to opt for a loan. Though it is very hard to wait for own funds but it is a very wise decision to buy anything by own funds. Impulsive purchases are often identified as the main reason behind debt traps. FINANCIAL ANALYSIS Before opting for another loan one must analyze financial aspects. There are two ratios which show the financial strength of a person. First - EMI to In-come ratio; and Second - asset to li-ability ratio. Both the ratios are inversely related to each other. More EMI means more liability and less EMI means less liability. One must focus on increasing income on one side and assets on an-other side. Depreciating assets to ap-preciating assets ratio is another impor-tant tool for analyzing financial strength of any individual. Take care, don’t fall into debt trap. Take care of unplanned expenditure that also through your income not through fresh debt. Take debt but only to add on ap-preciating assets not for depreciating assets. Invest your saving wisely. Rather suggest your friends also to in-vest wisely.


ROUND UP OF CHAPTER ACTIVITIES – INFORMATION GALORE

Under 25 Corporate

Cricket Tournament,

organized by NIAM,

National Institute of

Applied Manage-

ment, Sector-37,

F a r i d a b a d

During 21-23 Feb.

Team of Faridabad

Chapter participated

and reached to the

level of semi final. Mr. Arvind Kumar led the team and CS

Sunil Nagar was manager of the team.

Study Circle Meeting

O n 2 6 . 0 2 . 2 0 1 1 ,

Faridabad Chapter has

conducted Study Cir-

cle Meeting on

“Recent Liberalization

and Managerial Remu-

neration”, Mr. Vineet

Chaudhary, Regional

Counci l Member

NIRC was the guest speaker and more than 38

delegates attended the program.

Budget Seminar On 28.02.2011, The Chapter organized Budget Seminar at

Magpie Restaurant, Faridabad on Budget day. The speak-

ers were from the top consulting Firms having extensive

knowledge on the subject. The first session of the seminar

was addressed by Mr. Hitender Mehta, Vaish Associates,

on Service Tax. Deliberations on Direct Taxes were made

by Mr. Arvind Singal from KPMG and on Indirect Taxa-

tion by Mr. Ajay Garg, AGB & Partners. The audience

raised numerous questions and well replied by the

speakers.

Mr. Anil Chaudhary, Jt. Director, Department of Indus-

tries and Commerce, Govt. of Haryana was the Chief

Guest. During his address he assured all out support to Faridabad chapter in its Endeavours.

Student Induction Program

Fourth SIP was successfully organ-

ized at NIAM, Sector—37, Farida-

bad. Valedictory function of the

same was held on 27.02.2011,

where certificates were distributed

to the participants.

Achieved three milestones: (i) became „SEBI Empanelled Resource Person‟; (ii) Joined

as one of the Panelist for Budget Discussion just after Live Demonstration in FSIA con-

vened Budget Session on 28th February, 2011 at Hotel Delite; (iii) Piloted the signing of

MOU „Corp CS Scheme‟ between ICSI and Corporation Bank on 1st march, 2011 at

PHDCCI in a glittering program where CMD, Corporation Bank was Chief Guest.

Chairman Faridabad Chapter


FORTHCOMING PROGRAMS

CHAPTER CONGRATULATES

Mr. Rakesh Kumar, Past Chairman of the Faridabad Chapter on being felicitated during the Study Circle Meeting held on 26.02.2011.

Date Activity and Venue Timing and Venue

15.03.11 Holi Milan Rajasthan Club, FCCI, Centre, Near Tubewell No. 4, Sector – 11B, Faridabad (Haryana)

Timing: 5:30pm-9.30pm

13-21.03.11 (Tentative)

Student Induction Plan

At NIAM, Sector-37, Faridabad

From 9.30 am to 5.30 pm all days

26.03.11 Study Circle Meeting 6.30 pm at DAVIM, Central Green, NIT, Faridabad

Bouquets and Brickbats Regular Feature

I congratulate you and your team to make Faridabad

Chapter once again cognizable on CS Professional

Front. I wish to see such newsletters happening every

month going forward.”

Mr. Ashwani Nayyar,

Past Chairman Faridabad Chapter

“For any profession or association to succeed, infor-

mation circulation is of paramount importance. It is very heartening

to see that the new management of Faridabad chapter has taken steps

to this effect right from the day one it assumed office.

Mr. Parameswaran,

Shahi Export Pvt. Limited

At the outset, Congratulation to Faridabad chapter for such a wonderful initiative under your able guid-

ance...believe me i m highly impressed with the presentation, design and everything of the e- newsletter

and specially your article on " lean days of practice"... and very soon going to request chairman of all the

chapter's , specially of Rajasthan , to launch the e newsletter ...its really a great step to enhance the visi-

bility of the profession amongst the corporates, regulators and other stakeholders....”

Mr. Shyam Agrawal,

Regional Council Member of NIRC of ICSI

“You and your team have taken the first step in the right direction and I wish all the best for the future

endeavors to the entire team of Faridabad Chapter.

Mr. Manish Gupta,

Regional Council Member of NIRC

“I congratulate you for your outstanding efforts for beginning the activities of the Faridabad Chapter of

ICSI in different fashion.I have a complete faith and confidence that in your leadership the Faridabad

Chapter will see the new heights, which it would have never seen in the history of Faridabd Chapter of

ICSI.”

Rakesh Kumar

Past Chairman of Faridabad Chapter


Experience Sharing Regular Feature

Aha! Company Secretary in a Listed Entity

CS Ashish Bhatt, faridabad


Being a Company Secretary

Being a Company Secretary can be fun, especially in a Listed Company when many of your colleagues do not know what exactly your profile is?? However, one curiosity is al-ways there among your colleagues and that is to know how your Com-pany’s share would behave in the near future. That can be quite em-barrassing at times because you may not be the right person they are looking for. However again you have to satisfy their appetite and also to comply with insider trading guidelines. Because not answering anything disappoints them to the extent that they start doubting your friendship commitments towards them. So as a Company secretary adherence to law is core responsi-bility and is your bread and butter but for your friends and for the sake of friendship you should burden yourself with this additional respon-sibility. Exactly, what it is? How you can become good analyst and good analyst for your own Company’s Share movement?? What points should to be taken in mind while doing the analysis of Company’s Share??? The following are some of the handy points while making a quick decision regarding the same:

Turnover of the Company: Turnover

– A basic indicator how the Company

is faring. Many time turnovers speak

volumes about the robustness of the

Company without even suggesting a

single thing about the other financial

parameters of the Company.

Profit Before and After Tax: Well no

one but everyone at end of the day is

interested in one thing i.e. profit and

many a times this is only one thing to

which all the other matters can be

summed up.

EBITA, EBIDTA and Operating Mar-

gin: These Margins are basically cal-

culated on Profit to Turnover and is a

key indicator to know that how much a

Company is faring. Suppose if a Com-

pany is making a Profit of Rs.10/- on a

turnover of Rs. 100/-, then the Margin

is 10%. Higher the Margin the better it

is. It is generally higher in the case of

Service industry. An increase in Mar-

gin figures generally suggests that the

Company has utilized its resources

more efficiently as compared to previ-

ous period figures.


Regular Feature

Order Books of the Company and dis-

section of Order Books: One should al-

ways keep an eye on the order books of

the Company, as these are the figures

which would ultimately consummate in to

sales and thus would represent the future

turnover figures. The Dissection of these

order books is also very necessary so as

to the Clients and industry, which your

Company is catering to. The Dissection is

must because ultimately the future of your

Client and Industry is your future.

About the Products of the Company:

You must have very good knowledge of

the products of the Company, their per-

formance and their application areas. An

introduction of good product to the portfo-

lio of the Company generally sends posi-

tive signal to the market.

Any Expansion Plans of the Company:

Always keep an eye on expansion plans

of the Company and who would be in a

better position then you to do so. Expan-

sion plans generally suggests increased

activities and thus increased turnover and

profits.

Government Policies: Government poli-

cies must be kept a close watch at be-

cause a Lower Tax regime generally en-

courages consumerism and thus helps the

turnover. Government decision regarding

interest rates and banking decisions

should also be watched upon as financing

options affects market to a large magni-

tude. The better the financing options are,

the better the market progresses.

Market in General: Well a Good

fish can’t remain alive in Dirty wa-

ter, thus ultimately it’s the market

also which necessarily needs to

be looked at. Normally the graph

of Company’s share also remains

in sync with the market. However

exceptions are always their but it

is quite difficult to sail against the

wind.

The above points are only suggestive

in nature and one can always use his

intuition and gut feeling to predict the

same, but better it is, if it is supported

on some concrete basis. The above

points would also come handy if some

analyst calls you, as these are the

basic questions asked by them.

As your friend(s) expects you to be a

clairvoyant of your Company’s shares

future, similarly, the management too

expects instant answers to their que-

ries Always keep an answer ready for

these questions which can be asked

anytime by the member of the man-

agement (Board of Directors):-

What is the latest rate?

What’s the item on the agenda?

How was the budget today?

About Competitor Company’s per-

formance?

About the Agenda Item details like

Legal Cases etc.?

Status of the Latest Assignment

given etc.

These are the general questions. Remember, you are expected to be moving and updated encyclopedia of Company Law. Any slip on questions related to company law will cost you very heavily. So, although you can’t be perfect, but try to as effec-tive as you can with ready answers. Become Smart Company Secretary and enjoy the limelight. In that way, you can give a big boost to your image together with the image of the profession.


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