Thursday, November 29, 2007

Marriage of ex-collegue on 25th Nov 2007 at Guruvayoor:

One of our ex-collegues - Santhosh invited us for his wedding which happened last week in Guruvayoor Temple.

Me, Hari joined them in Chennai Central Station to Thrissur.

Sai and Deena came from Bangalore and got us in Thissur.

Nakul came from Madurai.

Kannan Devendran came from Trivandrum.

We went to Chotanikarai Bagavathy Amman Temple on Saturday, the 24th Nov.
ON 25th, after attending the marriage, we had a good dharshan of Lord Krishna in Guruvayoor. Did shopping and bought many stuffs.

It was a fun-filling trip and we all enjoyed to the maximum core. Hope to have a trip like this again quite soon.

Few photographs:

















History of Accounting:

Bookkeeping and record-keeping methods, created in response to the development of trade and commerce, are preserved from ancient and medieval sources. Double-entry bookkeeping began in the commercial city-states of medieval Italy and was well developed by the time of the earliest preserved double-entry books, from 1340 in Genoa.


The first published accounting work was written in 1494 by the Venetian monk Luca Pacioli. Although it disseminated rather than created knowledge about double-entry bookkeeping, Pacioli's work summarized principles that have remained essentially unchanged. Additional accounting works were published during the 16th century in Italian, German, Dutch, French, and English, and these works included early formulations of the concepts of assets, liabilities, and income.


The Industrial Revolution of the mid-1700s created a need for accounting techniques that would be adequate to handle mechanization, factory-manufacturing operations, and the mass production of goods and services. With the emergence in the mid-19th century of large, publicly owned business corporations, owned by absentee stockholders and administered by professional managers, the role of accounting was further redefined.


Starting in the mid-20th century, machines—particularly computers—performed many of the bookkeeping functions that are vital to accounting systems. The widespread use of computers broadened the scope of bookkeeping, and the term data processing now frequently encompasses bookkeeping.
Alert on Tax Saving Efforts:

The Govt. of India has signed a contract with IBM for Rs.205 crores to create database of 375 lakhs income tax assessees based in Mumbai, Delhi, Hyderabad, Chennai and Ahmedabad. IBM was to start this work from Sep 2007.

Further, this year Income Tax dept has not been accepting TDS certificates, donation receipts etc. along with income tax returns. This tends to believe that Indian Income tax dept is coming in position to cross verify all your claims electronically.

An assessee can be issued notice of scrutiny for a period of 6 yrs. If you can't satisfy your ITO about genuineness of your return or payment of taxes, you could be asked to pay addl. tax with interest and the IT dept is empowered to levy 300% penalty.

One needs to engage efficient CA to attend scrutiny. An efficient CA may charge Rs.2,000/= or more per hour for time he devotes for visits to Income tax office and the time he spends in his office for preparation of replies. The CA's bill may come for more than Rs.25,000/=.

This year and last year income tax dept has issued plenty of notices to small income assessees whose capital is big.

Normally, the ITO gives tension to assessees. During scrutiny, he can ask for your passbooks and can verify correctness of your claims and in the process may come across various other issues.

Saving Rs.1,00,000/= in tax is no wise decision looking to the gravity and contract to IBM for creating database.

Friday, August 03, 2007

Are we really comfortable with the Government authorities?

Just thought of sharing couple of my incidents happened recently with Government officials……

As we all very much know, most of the Govt officials who interact with public do NOT themselves know the procedures to be followed and very importantly, details relating to latest developments like on-line returns, forms downloading from web sites, change in formats of forms / challans etc.

Recently, for making one of the high value payments to “Ministry of Corporate Affairs”, I faced lot of troubles and notably, nobody was able to help me.

It’s some thing like this, when we file our return for this purpose on-line, it auto-generates a challan with pre-filled details. We’ll have to print this and submit to any one of the authorized bank branches along with a cheque / DD for the applicable fee within 3 days, (will be invalid otherwise).

Problems faced:

a) The link on their website for knowing the authorized bank branches was / is not working.
b) When we enquired with the MCA office, no body knew the answer.
c) I checked up with various consultants whom I know, but they are also not sure about this but got me a list of banks, which ‘might’ accept this payment.
d) Sent my admin assistant to these banks and invariably, every bank was unable to accept this payment quoting their own idiotic reasons (all b’coz that they were not clearly instructed by the Govt officials)

i) Some says they are not authorized to accept (in spite of the fact that MCA says they are one of the authorized branches),
ii) Some says cheques are not allowed – only DDs or cash deposits are allowed (the other joint authorized signatory was in London and being high value payment cash deposit was also not possible)
iii) Some says that the cheque has to be drawn in a different name (but the form which was generated by the MCA site clearly indicates a different name, and I strictly followed that thinking that the bankers would create problems otherwise)

e) Then I checked up with another consultant in Chennai. He says that he used to make these payments in ICICI, Nungambakkam Branch. Then, I had no solution except to send the stuff to my ex-admin manager and requested him to submit it immediately since that was the last day. Though he was in hectic work schedule, was able to help me.

Another incident was / is regarding the remittance of service tax. (Need to write a separate blog about the levy of service tax, hence let me talk here only the fuss I faced in remitting the same).

I think that Service Tax authorities spend their most of the time in changing the formats of forms, challans etc very often. To our surprise, every time we remit the monies, there is a change in format with a strict instruction to all banks that old formats should not be accepted. For which, they should also let public know the new format. But what we usually hear is “Format is changed now, but we are not sure about the new one”.

When I remitted this time in Chennai in a format (which itself is a recently changed one and downloaded from the web site of Service Tax), the counter girl said “format is changed and you could try Income Tax Office for the new form”. I told that this is the downloaded form, but she said they are instructed not to accept a different format.

Then I went to Income Tax Dept and checked up about this… “Chanceless, we haven’t changed the format and also, we don’t sell forms”…. Yes, this is what I heard from the superintendent there. Since talking to him will of absolutely no use to me, I went to a law book selling shop and bought those forms whatever they had then and went back again to bank (which took about an hour in this traffic, also that it was raining).

This form insists for more details with a note that these details can be accessed to their web site. Then I called up my colleague to check the website and let me know these details. He called me back in few minutes and told these are not available on this site. I just filled up the form with whatever details I had and submitted to the bank, by clearly freezing my mind that when the concerned officials come back to me for any missing information, I’ll show who I am.

What I’m trying to say here is that taking a corporate decision for any statutory obligation is not so simple. We need to talk to various people like auditors, company secretaries, tax authorities, internal management guys at various hierarchies. After these are done, payment of concerned fees / amount is the last stage which completes the transaction and is supposed to be simple. But the situation is that we face more trouble in remitting the monies to Govt. than deciding the whole objective. Ironically, if the payment is not made on time, our Govt authorities are very perfect in threatening the corporates with penalty, interest, imprisonment etc.

“wat ? wat ? I can’t hear you clearly… “Seeking the help of Information Officer………”

Ha ha, good joke………we are in India man. What we expect from Govt Officials is to do some basic stuff, which they are supposed to do, for which seeking the help of an officer is something senseless effort. Anyway, would like to know whether any one has got justice through Information Officer anywhere in India.

Friday, July 27, 2007

Code of Bank's commitment to Customers

Many of us might be interested to know what exactly is the code of bank's commitment to customers............

For those who are looking for the answer and also about various rules and regulations about banking in India, here's the link........

Click here

Wednesday, July 18, 2007



Yesterday, the 17th day of July 2007, was a memorable day for about 20 employees in Cricinfo (which includes me too).

We were all awarded for "Long Term Achievement".

Those who had completed 4 yrs and 6 yrs of service were complemented with Tropy; and 4 & 6 gms of Gold Coin respectively (and of course, respectfully :-).

Friday, July 06, 2007

Investing in Mutual Funds ? - Impossible without Income Tax Permanent Account Number:

Till July 1,2007, only those people who invested in Mutual Funds for amounts more than Rs. 50,000 were needed to quote their IT PAN on the application. To avoid quoting this number and to be on a safer side, our people were wisely splitting the investments in to various parts either in their names or in the names of their relatives.

But, how long the Govt will sleep ?

Quoting IT PAN has been made mandatory by SEBI with effect from 2nd July 2007 for Capital markets and Mutual Fund investments irrespective of the amount of investment.

So, whether the investment is in your name or other's name, it doesn't matter anymore.

Photocopy of the PAN Card of the applicant has to be attached along with the application, without which it can't be processed.

It means that, if you want to invest but don't have PAN, you can do so only after applying for PAN. Of course, photocopy of acknowledged PAN application can be attached alongwith the investment application till the time you are allotted the number.

Wednesday, June 27, 2007

There was lot of action in the stock markets yesterday with a volatile swing on selling and buying activities and the sensex closed with a moderate gain of 13 points.

There was buying in Capital Goods stocks.

BHEL extended its gain for the second consecutive day.

Oil company stocks also rose for the second day.

Banking stocks ended lower and other Indices closed flat or lower.

The rupee shed 0.6 paise against the Dollar.

The crude settled at $68/bbl.

The markets are expected to remain volatile in the next few days ahead of the expiry of Futures & Derivatives contract for the current month.

Tuesday, June 26, 2007

Market update:

The markets closed on a positive note on monday at 14,487 with a gain of 20 points over the previous close on the back of roll over of derivatives position, amid weak Global cues.

The markets were pushed up by index weight scrips like ONGC & BHARTI AIRTEL. There was also support from Capital goods heavy weights L&T & BHEL.

Oil stocks were on the limelight and closed higher.

BEML's FPO price was fixed at 1020-1090. Midcap stocks ended higher and the midcap index closed at a new high.

Banking and technology stocks however closed on a negative territory.

The rupee came under pressure and closed as 40.88 to a Dollar due to monthend purchase by the importers and the oil marketing companies.

The crude was traded around $68/bbl.

Thursday, June 21, 2007

Sivaji - cool or fool ?

Had a chance to watch this movie with about 20 colleagues in Urvashi Theatre (Bangalore) - and like everyone, with high expectations.

Pluses: Rajni, Rajni and Rajni
Minuses: rest all........ (except Music and art)

I feel that -

a) the flow of scenes are not good,

b) some of the scenes are unbelievably exaggerated,

c) Rajni has not done certain scenes well which he could have done better,

d) Shankar's punch is present only on scenes referred in point b above

One good news for Rajni fans about this movis is that his styles are awesome and available throughout the movie which entertains everyone....

He uses the word 'Cooool' very often in the movie, but for those who are ditched, it sounds like 'Fooool' :-)

Tuesday, June 19, 2007

The market opened higher and hit an Intra day high of 14283 mirroring a firm trend in Asian markets.

Nevertheless, the market dropped 83 points at the close and ended at 14080.34 on concerns that FII may pare their holdings following a circular from CBDT differentiating between trading and investment stocks for taxation purpose.

All the Indices closed negative except bankex.

The rupee surged ahead and closed as 40.78 /$

Additional News: The IPO of ICICI Bank opens today with a price band of Rs.885-950.

Friday, June 15, 2007

Subject: ESPN acquires Cricinfo effective from June 8, 2007

The Wisden Group has agreed to sell Cricinfo to ESPN, one of the world's leading multimedia providers of sports content and entertainment.

Cricinfo and ESPN have worked together for a number of years so there is an existing relationship between the two businesses.

They are delighted to be acquiring Cricinfo, as their existing, highly regarded online sports portfolio does not include a dedicated cricket site.

Cricinfo has developed and flourished over the last three or four years and we are a strong and successful business.

The Wisden Group board has decided to sell now because they believe that Cricinfo will flourish in an environment dedicated to sports broadcasting and entertainment.

Also that Cricinfo can be an important element of ESPN's international development and sees fantastic benefits for Cricinfo in terms of content as well as in terms of expertise and experience in our core business.

ESPN is a multinational business with offices around the world, but for the immediate future Cricinfo offices will continue to operate normally and there will be no changes to the day-to-day running of the business.
Launch of NFO "Reliance Equity Advantage Fund- An open-ended Diversified Equity Scheme "

NFO dates
Opens on: 12th June 07
Closes on: 10th July 07A brief on the product...

Sector weightage of Reliance Equity Advantage Fund will mirror exactly that of Nifty on a
Monthly basis.

80% of stocks within each sector will be constituents of Nifty, though not necessarily with their Nifty weights

20% of stocks can be non-Nifty in each sector to provide the additional Alpha possibilities and opportunities

Flexibility of going short exists, but on a net basis sector weightages will be maintained in line with Nifty