(News collection for Management studies)
Volume: 02 Issue: 127 05-March, 2011 – Saturday Pages:9
Focus on Budget, 2011-12.
Budget 2011-12 Highlights
I-T exemption limit raised to Rs 1.80 lakh from Rs 1.60 lakh .
Exemption for senior citizens raised to Rs 2.5 lakh
Tax under women slab unchanged.
Tax exemption raised to Rs 5 lakh for senior citizens of 80 years.
To increase service tax on air travel
Excise and customs duty proposals to result in the net gain of Rs 7,300 crore.
Export duty rates on iron ore unified and kept at 20% ad valorem.
Basic customs duty on agricultural machinery reduced to 4.5% from 5%
Basic customs duty on raw silk reduced from 30 to 5 per cent
Excise and customs duty proposals to result in the net gain of Rs 7,300 crore
Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
Peak rate of customs duty maintained at 10% in view of the global economic situation.
Customs duty exemptions for hybrid auto parts.
Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
Standard rate of central exercise duty maintained at 10%.
Central government debt in proportion to GDP will be 44.2% in 2011-12.
20% export duty on all grades of iron ore.
Basic customs duty reduced on certain textile products
No change in service tax rate of 10%.
No change in central excise duty.
Plan to levy 1% on 130 consumer items.
Revenue deficit fixed at 2.3 per cent in revised estimates of 2010—11 and 1.8 per cent in 2011—12,
Total plan expenditure will go up 100 per cent in nominal terms in the next year
15% tax on dividend for Indian cos from foreign unit.
Direct Tax proposals result in expenditure of Rs 11,500 cr.
To reduce surcharge on domestic companies to 5% from 7.5%
MAT rate hiked to 18.5% from 18%.
MAT on developers in SEZs to be levied.
Fiscal deficit revised to 5.1% from 5.5% for FY'11
Total expenditure raised by 13.4% at Rs 12.57 lakh cr over budget estimates
Gross tax receipts estimated at 9.32 lakh cr for FY 2011-12
Bill to amend India Stamp Act soon.
Budget allocation of Rs 100 cr for Ladakh and Rs 150 cr for Jammu for implementation of projects identified by taskforce
Old age pension to persons of over the age of 80 raised from Rs 200 to Rs 500
Health allocation up by 20% to R 27,600 cr.
Rs 9- lakh ex-gratia for defence personnel for 100% disability fighting Left-wing extremism.
To set up 15 more mega food parks.
Remuneration of anganwadi workers raised from Rs 1,500 to Rs 3,000 per month. Helpers to get Rs 1,500 from Rs 750
Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.
Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.
Rs 50 cr grant to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala.
Rs 200 cr for environmental remediation programme.
Age for pension eligibility reduced from 65 years to 60 years under Indira Gandhi Yojana scheme
To move insurance, pension and banking bills in Parliament
Rs 500-cr for National Development Fund.
Rs 400-cr as one-time grant for IIT-Kharagpur.
Move to set up State Innovation Councils underway.
Allocation to education sector raised to Rs 52,000 cr
Scholarship scheme for SC/ST students in classes iX, X.
Increase in allocation to higher education
Increase in remuneration for Anganwadi workers from Rs 1,500 to Rs 3,000 per month.
Plan 17% increase in social sector spending.
To introduce Food Security Bill
Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.
Fertiliser industry to be included under infrastructure category.
New companies bill to be introduced.
GoM to be set up to deal with corruption
Five-fold strategy to deal with black money.
Mega cluster for leather products to be introduced.
Existing interest subvention scheme on short term farm loans at 7 % interest to continue.
Self-assessment in customs to be introduced.
Credit flows to farmers raised from Rs 3.75 lakh crore to Rs 4.75 lakh crore.
Constitution Amendment Bill for introduction of GST in this session.
Goods and Services Tax Bill this year.
Direct Taxes Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.
Public Debt Management Agency Bill in the next fiscal.
Indian mutual funds to get direct access to foreign markets; FIIs to be allowed to invest in MFs.
To liberalise FDI policy further.
To extend infra tax breaks to fertiliser sector.
To set up microfinance equity fund.
Government to move towards direct cash transfer of cash subsidy as regards kerosene, LPG and fertilisers from March 2012 for BPL in view of large diversion.
3% interest subvention to farmers who repay in time.
Nabard capital base to be increased by infusing Rs 10,000 cr
Rural housing fund increased to Rs 3,000 cr
Banks asked to step up lending to agriculture.
Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.
Budget proposes to raise housing loan limit from Rs 20 lakh to Rs 25 lakh for priority sector lending.
Allocation for farm development hiked to Rs 7,860 cr.
Rs 300 cr proposed to promote production of cereals.
Indian micro-finance equity with SIDBI to be formed at Rs 100 crore.
Rs 6,000 cr to be given to public sector banks to maintain capital-to-risk assets ratio norms
RBI to bring in new guidelines for banking licences.
Aiming Fiscal deficit of 3% by fiscal 2014
Central electronic registry to reduce fraud cases.
FII investment limit for infra corporate bonds hiked to $40 billion.
Discussions on to further liberalise FDI policy.
Preparation of GST rollout in final stages.
Microfinance equity fund of Rs 100 cr proposed.
Govt committed to hold 51% in PSUs.
Rs 3,000 cr to Nabard for handloom societies.
Women self-help group development fund to be set up.
Direct transfer of subsidy for kerosene.
Goods and Services Tax Bill to be introduced in Parliament this year.
Direct Tax Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.
Disinvestment target at Rs 40,000 cr.
Direct Tax Code from April 2012.
SEBI-registered MFs to be allowed direct access to foreign funds.
Expect RBI to moderate inflation.
Public Debt Management Agency Bill to be introduced next financial year.
Current account deficit and average inflation in 2011-12 likely to be less than current year.
FDI policy review done in Sept 2010.
Economic growth in 2011-12 likely to be 9 per cent.
Admits large-scale diversion of kerosene.
Introduction of DTC will be a watershed moment.
Debt managment bill to be introduced.
Constitutional Amendment Bill on GST to be introduced.
Expect agri sector to grow at 5.4% in 2011.
Growth in 2010-11 broad-based.
Economy resilient to shocks.
RBI measures will further moderate inflation.
GDP estimated growth at 8.6% in real terms.
New dynamism in rural economy.
Core inflation in check.
Current account deficit is at 2009-10 levels, and is a matter of concern.
Huge difference in wholesale and retail prices not acceptable.
Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan
Revival in private investment should be sustainable.
Service growing in double digits.
Need to reconcile legitimate environmental concerns with developmental needs.
Food Inflation has declined by half, but still a matter of concern.
SPECIAL FOCUS
All set to ‘unlock' Hotel Leela's potential
Interest is often seen to wane in a family business when it comes to the third generation. But that is not the case with Amruda and Aishwarya Nair, grand-daughters of Capt C.P. Krishnan Nair, founder-Chairman of Hotel Leelaventure.
The Leela is a relatively young brand and “there is so much to do,” says 28-year-old Ms Amruda Nair, responding to instances of the younger generation exiting from family businesses elsewhere. Giving an insight into how the family views challenges in the hospitality industry, she says: “For us its still all new…So it's not like we are inheriting something that is already there but there is so much happening and we are no way close to the end. So it's too early not to have interest,” says Ms Nair, the older sibling, who heads Hotel Leela's Corporate Asset Management.
The conviction of their grand-father and father (Mr Vivek Nair, Vice-Chairman and Managing Director, Hotel Leela) is so strong. “We believe in the brand because we see it. But they saw it way before any of this really existed.”
Hospitality industry developments — such as Reliance Industries picking up a stake in the Oberoi Group, and in their own backyard, competitor ITC's increasing stake in Leela — are discussed by the twenty-something siblings like, as Ms Amruda nair says, “just any other topic” that “would interest everyone”.
Yes, they do become topics of discussion at the dining table at home with their father, and in the office elevator with colleagues, but that's about it, she says with her younger sister, Aishwarya, nodding in agreement. Ms Aishwarya Nair heads Corporate Food and Wine Merchandising.
Reliance Industries' investment in Oberoi Hotels is just an “indicator” for Ms Amruda Nair that Leela is “in the right place at the right time… The fact that so much is going on in the market it definitely means that there is obviously potential that is waiting to be unlocked.”
However, toeing her father and grand-father's response on ITC hiking stake in Leela, she says, “At 8 per cent where they (ITC) currently stand, it is too small a number to make a significant difference and, I think, as far as the promoters are concerned while they still have 51 per cent stake there is no reason to sweat over it.”
Does it worry them? Shaking her head in disagreement and a smile Ms Amruda Nair says, “Well that's a good sign because they clearly know the business and if they think we are doing a good job and they have to participate in capital gains from buying our stock…why not?”
(This article was published in the Business Line print edition dated March 5, 2011)
DAY FOCUS ( Collected by J. Deepthi, 09D61E0011)
Govt will not intervene in working of financial regulators: Pranab
The Finance Minister, Mr Pranab Mukherjee, on 04th March,2011 ruled out any Government intervention in the functioning of the financial sector regulators, stating that they are doing a “good job” in their respective domains.
“There is no need for intervention,” Mr Mukherjee told the Lok Sabha during question hour, adding that regulators need to continue having functional autonomy so that they can discharge their functions as “vested in law.”
At the same time, the Finance Minister pointed out that the respective laws governing the Reserve Bank of India, the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority, had a specific provision (Section 3) enabling the Government to issue directions on matters of policy to these three financial sector regulators.
He also highlighted that the three financial sector regulators — the RBI, SEBI and the IRDA — submit their annual reports to Parliament, which in turn had the authority to check any “gross misdirection” by them.
As for the Pension Fund Regulatory and Development Authority, Mr Mukherjee said this Authority was created through an executive order, and that the Government was “contemplating” introducing a Bill to provide statutory status.
Rs 8,000-cr more subsidy for fertiliser industry
The fertiliser industry has been given an additional Rs 8,000-crore subsidy for the current fiscal, which is expected to clear most of its outstanding dues from the Centre.
The Budget for 2010-11 had originally allocated Rs 49,980.73 crore towards fertiliser subsidy, which was later raised to Rs 54,976.68 crore according to the revised estimates presented by the Finance Minister, Mr Pranab Mukherjee, in his latest Budget. “The latest allocation for fertiliser subsidy will ensure that there are no pending dues to be rolled over to the next fiscal. The Rs 49,997.87 crore allocated for 2011-12 will go entirely for that fiscal year's subsidy payments,” industry sources said.
MANAGEMENT TIPS
KEEP UP WITH CHANGE
There is no way to stop the world from changing, so follow these tips to keep up and ahead of the game.
Don't fight change. You can't stop markets, trends and technology from changing, so learn to go with the flow.Adopt a predictive managerial style. Don't wait for things to happen to make a move. Anticipate problems and provide contingency plans.Test your contingency plans. Waiting for disaster to strike is a dangerous way to find out if your emergency plans will hold. Test them out from time to time to fine-tune them and make sure they're still relevant.Identify the positives. Even the most negative changes can have positive aspects to them. Being able to identify and maximize them can help make adapting less painful.Be quick to adapt. Learn to adapt to changing situations quickly and be able to change plans on the spur of the moment if the situation requires it.Stay tuned to external factors. Your business is affected in many ways by outside factors. Keep abreast of these so you can anticipate any sudden market changes that would affect how you need to manage.Put in place a Research and Development plan. Encourage innovation and creativity to stay ahead of the demand for newer and better products and services.Keep an eye on the competition. Don't let the competition get the best of you. Keep up-to-date with what they're doing and use it to your advantage in managing your businessFOCUS ON CASE STUDY
ORGANIZATION DYNAMICS AND CHANGE MANAGEMENT
Following is the letter authored by the Vice President, consumer electronics division and addressed to the production manager. The issue raised in the letter relates to Quality First Programme.
.I think it’s time to look at a new approach to our Quality First Programme. We’ve had the suggestion box out for a year and so far we have received only two suggestions for quality improvements, of which only one made any sense..
.Let’s try a group approach. We can divide the employees into groups that can meet to come up with ideas for improving the quality of our products and production process..
.I’d like you to prepare a plan for these groups. How should they operate?
How often should they meet? What should be the size of each group? Should we divide the groups into engineers, production workers, maintenance personnel and so on, or should we put a variety of workers into each group? What problems can we anticipate with the group format, and how can we resolve them?. .These questions are meant as a starting point. If you have other ideas or concerns, please include them in your plan..
Questions :
Assume you are the production manager and respond to the Vice President’s letter with a memo outlining the plan requested. Be sure to respond to the specific questions. Use as many of the concepts in the chapter as you can to develop a complete plan that minimises the pitfalls of group dynamics.
Focus – Day Tip 'If you will follow the right path, GOD will become a guide to you!' |
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