Saturday, December 27, 2008

'Amortisation deductions for intangibles have a material impact on tax rates'

IFRS transition should be in a phased manner

A common myth about IFRS (International Financial Reporting Standards) is that transition is swift and painless, observes Mr N. Venkatram, IFRS Country Leader, India, and Partner in Deloitte Haskins & Sells, Mumbai. There is a belief that since India has adopted accounting standards which are based on the international standards, conversion for most companies would entail passing a few more journal entries, in order to transform accounts as per Indian GAAP (generally accepted accounting principles) into IFRS financial statements, he explains.

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'The evaluation of impairment is based on management’s internal assessment'

‘Grab the opportunity, but retain focus during acquisition’

Chennai, Dec. 24 We saw a few days ago how a major deal was reversed within hours. Are there lessons in this on what can go terribly wrong with a big-ticket mergers and acquisitions too quickly? “Globally, recent years have seen a rise in investor activism,” observes Mr N. Venkatram, IFRS Country Leader, India, and Partner in Deloitte Haskins & Sells, Mumbai.

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Wednesday, December 24, 2008

'Non-performance should be dealt with seriously'

Fight ‘fear of recession’ first

How is the recession, the full effect of which may yet be coming, impacting our IT (information technology) companies? While a few big companies are suffering, some small players are managing quite well, observes A. Krishnan, Founder, Maximus People Solutions, Chennai.
Among the smaller companies, he finds a commonality: that they had some kind of a foresight and invested in long-term strategies and were better equipped to face the bad time. Regardless of the size, they saw what was coming ahead and/or were not complacent, adds Krishnan, during the course of a recent e-mail interaction with eWorld.

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Friday, December 19, 2008

'I see a generation gap in many Indian family firms'

Families especially good at buffering stress

Have family businesses, despite their wars, shown a greater resilience during times of economic crisis, such as what we currently see? “Generally speaking, yes,” says Mr Nigel Nicholson, Professor of Organisational Behaviour, London Business School ( http://www.london.edu/ ). There is often a fierce determination among people who found and co-own businesses to fight for their existence, he adds, in the course of a recent email interaction with Business Line.

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'Many enterprises consider IT security as a discretionary budget item'

‘Create a risk-aware IT behaviour’

India, the emerging economic superpower, is waking up to certain hard realities, observes Jagan Nathan Vaman, CEO, Secude Solutions India Private Ltd ( http://www.secude.in/). Indian enterprises will increasingly become soft targets for terrorists and cyber attacks, he sombrely adds, during the course of a recent e-mail interaction with eWorld. “There is a saying in Sanskrit Heyam dhukkam anagatham — Avert the danger before it arises. Early adoption of IT (information technology) security and IT governance best practices will help guard against such threats,” advises Vaman.

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Top tips for the business traveller and the tourist

Takeaways from the Mumbai attacks

What are the key takeaways for the authorities and civilians from the way Mumbai handled the recent terror attack crisis?
“We tend to think of terrorist incidents as mass bombings, etc. However, in reality, terrorist’s use of firearms is very prevalent worldwide,” says Mr Raymond E. Foster, a retired Lieutenant of the Los Angeles Police Department, auth or, and college lecturer. He is also, as Wikipedia mentions, one of the leading authorities in law enforcement technology, police research, and counterterrorism strategies. He is the editor of ‘Hi Tech Criminal Justice Newsletter’ ( http://www.hitechcj.com/ ).

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Monday, December 8, 2008

What difference can BPM make for SMEs?

Not on paper

IBM buying FileNet, AptSoft and ILOG; Oracle acquiring BEA Systems; and SAP purchasing Yasu Technologies… Yes, we are talking about BPM, or business process management, which is all about “efficiently aligning an organisation with the wants and needs of clients”, as Wikipedia defines it.
BPM is already being touted as one of the key technologies in our current economic climate, reports http://www.insurancenetworking.com/. “IDC reports that the BPM market is growing 44 per cent each year, and could grow to a $5.5-billion market by 2011.”
Within the country, how is BPM seen as evolving in the long term? For the kind of growth that our companies have witnessed, there is a dire need for them to automate, and bring in systems and processes in place, and BPM is best suited to facilitate this, says Vivek M. Jain, CEO, StrApp Business Solutions, Bangalore ( http://www.strapp.net/), a company that works on BPM systems and custom Web applications, apart from working on automating defined ISO processes.

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Friday, December 5, 2008

'Cost and availability of finance will be the most important challenges faced by the buyers'

Proactive M&A approach foreseen

Given the current lull in the deal space, what is the outlook for M&A (merger and acquisition) activity in 2009? Companies will be aggressively looking at corporate restructuring options to unlock value, that is, strengthen the balance sheet and P/L, foresees Mr Rohit Berry, who leads the M&A practice in BMR Advisors (www.bmradvisors.com).

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Tuesday, December 2, 2008

'India is a country with tremendous potential for tourism'

Tickets, please

Meet Ananth Narasimhan, CEO, Atyourprice.in, who is happy that several of his online customers get tickets which are cheaper than the market price by 40-50 per cent. “As for corporate users, our software has been effective in not only reducing the number of travel admins and vendors but also creating an effective way to implement travel policies,” he adds, during a recent email interaction with eWorld.

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Is being a zero-debt company a comfort factor?

Go beyond financial analysis

Can reassurance be infused into the economy and the financial markets by mandating an additional set of disclosures in reporting by companies and financial institutions? "Though our reporting structure is amongst the best in the world, the realty sector's reporting and accounting practices need more crystallisation," says Mr V. R. Srinivasan, Director & CEO, Brics Securities Ltd, Mumbai (www.bricssecurities.com).

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'To be educated and smart is not the same as being intelligent'

What is crucial in dealing with loss is not to lose the lesson

Pain, crises, problems and clashes. These seem to be increasingly enmeshed in our lives. We are permanently in `the emergency ward,' bemoans Swami Dayananda Saraswati, founder of Arsha Vidya Gurukulam, Coimbatore (www.arshavidya.in). To get out of the `ward,' to resolve and avoid conflict in our world, the work that needs to be done is just to honestly try to understand one another, he prescribes.

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the FVCI investment is now permitted only in the 10 specified sectors

Issues in the FVIC route?

As per the recent approvals granted, the FVCI (foreign venture capital investment) vehicle is, inter alia, permitted to invest in the infrastructure sector. But what is the meaning of `infrastructure,' wonders Mr Punit Shah, Leader, Financial Service Tax practice, Pricewaterhouse Coopers. "The issue for consideration here is whether infrastructure should be understood generally or as defined in the exchange control regulations or as per the Income-Tax Act, 1961," Mr Shah adds, during the course of a recent email interaction with Business Line.

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