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EIRC NEWSThe Institute of Cost Accountants of India

` Annual200/-Vol. 9 No. 03 April, 2016

ISSN 2320 –1584 EIRC News

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Contents

DisclaimerThe views and opinions expressed or implied by way of articles in the EIRC NEWS are those of the authors and do not necessarily

reflect those of the EIRC of ICAI. EIRC of ICAI bears no responsibility for the contents in the articles published.

CHAIRMAN’S COMMUNIQUE 4

MEMBER’S SECTION

7

Foreign Direct Investment and Growth of 13Telecom Sector in India -An EmpiricalAnalysis

Sustainibility Tourism Analysis in North Bengal 18

STUDENT’S SECTION

Quiz Master Page 28

ChapterActivities 29

EIRCActivities 29

CMAAjay Deep Wadhwa

SECRETARY’S COMMUNIQUE 5

NEWS

Leenapriya De

Tama Dwibedi

Performance Appraisal on Mutual Funds:A study on banking sector diversified equityoriented schemes of mutual funds since postglobal crisisMr. Pema Lama

CHAIRMAN’S COMMUNIQUE

EIRC NEWS 4

Vol. 9 No. 03 April, 2016

Respected Members and beloved Students,

Financial year ending is always a tough time for professionals working in Corporates as they have to meet so many targets

whether it is accounts finalization, meeting all statutory compliances, tax payments, return filing so on and so forth. Still,

learning is a continuous process and learning for members at EIRC is given equal attention.

On 18 March 2016 EIRC organised a Workshop on “Compliances of ROC Matters”. CMA Debasis Chatterjee, Practising

Cost Accountant was the Resource Person and discussed issues that includes how to register a company, how to file various

returns, how to search for company documents, winding up of a company etc.

Annual Students Convocation was held at Science City Auditorium, Kolkata on 21st March 2016 and it was great to see rank

holders and successful students receiving medals and awards from dignitaries like Shri Chandrashekhar Ghosh, Chairman and

Managing Director, Bandhan Bank Ltd., Prof. (Dr.) Amiya Kumar Bagchi, Director, Institute of Development Studies,

Kolkata, Prof. (Dr.) Malayendu Saha, Vice-Chancellor, University of Kalyani, Prof. (Dr.) Ajoy Kumar Roy, Director, Indian

Institute of Engineering Science and Technology, Shibpur, Mr. D. P. Despande, Managing Director, Tata Sponge Limited and

Mr. Bibekananda Mohanty, Registrar of Companies who felicitated and encouraged the successful candidates.

Regional Council & Chapters meet was organized on 26 March, 2016 at Munnar, Kerala. The Best Chapter award was given

to the chapters of each region for their contribution towards the development of the Institute in terms of increase in student's

strength, increase in member's strength and conducting number of workshops on professional Interest. I congratulate the

chapters who were awarded with “Best ChapterAward” this year and wish other chapters also to become vibrant and win such

accolades in the year to come.

With warm regards

th

th

CMA Shiba Prasad PadhiChairman, EIRC of ICAI

SECRETARY’S COMMUNIQUE

EIRC NEWS 5

My dear professional colleagues,

India is a prominent global voice that has made significant progress on human development over the past 60 years, but the benefitsof a growing economy are not shared equally, the country is still having one-third of the world's poor. India is the world's largestdemocracy with nearly 1.3 billion citizens. The economy is among the top 10 percentile of fastest growing, and over the past 60years, life expectancy nearly double and adult literacy more than quadrupled .Gender inequality is pervasive, and the ratio of girlchildren to boy children is decreasing. Educational attainment is low, and India holds one-third of the world's illiterate.

In the month of March, 2016 EIRC has organised extensive career counselling programmes in different schools & colleges, forcreating an awareness among students about the course our Institute offers & the career prospects it has. During this month we hadto bring on awareness about GST and other topic of professional interest including Union Budget -2016 not only in the RegionalHQ, But also in different Chapters .I also participated in workshops on Union Budget -2016 organized by Dhanbad Chapter,Howrah Chapter and Rajpur Chapter during that month .

The EIRC and also the chapters of this region have organized several programmes on 'InvestorsAwareness' during this month as perschedule framed by the Ministry of CorporateAffairs, Govt. of India.

During this month, EIRC has organized workshop in association with 'Business Standard- Smart Business' on “Panel Discussion

on Union Budget” at J. N. Bose Auditorium, 12 Sudder Street, Kolkata on 4 March, 2016. Panellists were CMA (Dr.) Abhijit Sen,Former Chairman, EIRC, Mr. Narayan Jain, Direct Tax Expert, Mr. Anjan Sarkar, Indirect Tax Expert and Mr. Sabyachi Mitra,Director (F) Howden Solyvent (India) (P) Ltd. It was moderated by Ms. Isita Ayan Dutt, Resident Editor, Kolkata, BusinessStandard. Eminent Speakers on this occasions were Sri Rakesh Goyal, Principal Commissioner of Income Tax (TDS) and SriAloke Biswas, FA& CAO, SE. Rly. More than 250 of CMAprofessionals had participated in that workshop.

EIRC also has celebrated 'International Women's Day, 2016 jointly with EIRC, Institute of Chartered Accountants of India and

EIRC, Institute of Company Secretaries of India on 8 March, 2016 at R.Singhi Hall, 7, Russel Street, Kolkata. The Guest speakerswere Mrs. Agnimitra Paul, Fashion designer, Ms.Papia Adhikary, Film Personality, Ms. Trina Chatterjee, Red-FM, Mr. VishalKedia, Comply Karo, Mumb Senai, Ms. Rina Sarkar, ACP, Women's Grievance Cell, Kolkata Police, Dr. Vikash Agarwal,Oncologist and Sensei P. K. Mishra, President & Chief Instructor, Japan Caret India. More than 100 Participation of all the threeprofessionals were noted in that workshop.

It was my proud privilege to attend the annual convocation of the Institute held at Kolkata on 21st March 2016. The Convocationstarted with Convocation Parade by the Students and Guests. 90 students were given prizes in the first half of the program for theirachievements in December 14 and June 15 examinations while 901 students were felicitated with Rank certificate and medals in thesecond half of the program. The Chief Guest of the event was Mr. Chandrashekhar Ghosh, Chairman and Managing Director,Bandhan Bank Ltd., while Prof. (Dr.) Amiya Kumar Bagchi, Director, Institute of Development Studies, Kolkata was the ChiefGuest of Honour. Prof. (Dr.) Malayendu Saha, Vice-Chancellor, University of Kalyani, Prof. (Dr.) Ajoy Kumar Roy, Director,Indian Institute of Engineering Science and Technology, Shibpur, Mr. D. P. Despande, Managing Director, Tata Sponge Limited andMr. Bibekananda Mohanty, Registrar of Companies were the Special Guests of Honour.

Activities of the Chapter & the Region :

th

th


EIRC NEWS 6

National- Regional Council & Chapters meet was organized on 26 March, 2016 at Munnar , Kerala. The Chapters were awardedfor their contribution for the cause of the development of the Institute for increase in students strength, increase in members strengthand conducting number of workshops on professional Interest. The best chapters were awarded in 4(four) categories in each region.I congratulate all those chapters who were awarded in this year. I also request all those chapters to work together in future in theinterest of our profession.

I am happy to inform that the results of the March'16 –Preliminary Examination have been declared in March'16 as per schedule. Itake this opportunity to congratulate all the successful candidates and advise those passed and to immediately take admission in theintermediate course. However, for those who didn't clear in this term, they shouldn't lose heart but should try hard in the nextattempt. I am sure, they will succeed.

I would like to request all the chapters of this region to follow Clause 7 of the Chapter Bye Laws framed by the Council underRegulation 146 of The Cost & Works Accountants Regulations, 1959, and t

are requested to take a note of the same and to followthe common name in the style as prescribed in the Bye laws by the name of

I heartily welcome all new associate and fellow members of the Institute who have enrolled themselves during this month. Wehighly appreciate this initiative of applying for Membership (Associate & Fellow) as it gives a proud feeling of being a part of theprofession, also through this move we grow in numbers which in turn strengthens our professional hold over the industry as well asthe ministry.

I sincerely wish prosperity & happiness to all members, students and their families on the occasion of Bengali New Years DayBaisakhi & Ram Navami.

Let us live together with love, peace and harmony.

I once again extend my warm regards and best wishes to all the members and their families.

With warm regards.

th

he name of the Chapter should be: The Institute ofCost Accountants of India...….…….Chapter. The Chapters of this region

The Institute of Cost Accountants ofIndia...……….Chapter'

'.

CMA Pranab Kr. Chakrabarty

Secretary, EIRC of ICAI


EIRC NEWS 7

Introduction

A mutual fund is a collectively investment that pools moneyfrom investors and invests the same in equity or debtinstruments depending upon the objective of the fund and thestyle of fund managers. Structurally, mutual funds can becategorized as open ended funds and close ended investorfunds. Open ended funds are those funds which can issue andredeem units any time during the life of the scheme. Investorscan join the scheme by directly applying to the mutual fund atapplicable net asset value (NAV) relating prices in case of openended schemes while that is not possible in case of close endedschemes. In two aspects, namely flexibility and liquidity, openended funds score over close ended funds. The unit holder ofmutual funds is able to gain their investment advantage bydiversified, which might be beyond their financial meansindividually. The investment proceeds (in the form ofdividend, interest or capital gain) are then passed on to theindividuals investing into the fund. So, mutual fund is aneffective investment option for the common men as thereexists an opportunities to invest in a well-diversified,professionally managed basked of securities at a low cost. Thenumber of fund houses is increasing each year in India but sofar as size is concerned, the top five players (HDFC MF,Reliance MF, ICICI Prudential MF, Birla Sun Life MF andUTI MF) control over half of the country's mutual fundbusiness. This phenomenal growth is due to several favourableeconomic and demographic like booming capital market,infrastructural development, rising income levels, increasedforeign participation, favourable tax structure, improveawareness level and increasing reach of asset managementcompanies (AMCs). The objectives of this study are intendedto assess the growth of development of mutual funds in Indiawith special reference banking sector mutual funds.

Literature Review

In their research paper, Bauman and Mikker (1994) studiedthe behaviour of activity managed mutual funds from 1972 to1992, ranked mutual funds according to their total returns inone period while considering the performance over thesubsequent years. They observed that top performing fundswere not completely homogeneous. Jayadev (1996) in hisstudy examined the performance of two schemes from June1992 to March 1994 based on returns/benchmarkcomparison, diversification, selectivity and market timingskills. This study result showed that the schemes failed toperform better then market portfolio and there has beenunsatisfactory diversification. In conducting the study onmutual funds performance, Rao (2000) utilised relativeperformance index, risk return analysis, Sharpe's ratio,Treynor's ratio, Jensen's measure to evaluate the performanceof Indian mutual funds. Sondhi (2004) in his research paperevaluated the performance of equity oriented mutual fundsbased on the mutual funds type, size and ownership. Theabsolute rate of return with benchmarks (BSE 100) the returnon 364 days t- bills, the risk adjusted performance measure(i.e. Sharpe, Treynor, Jensen's alpha and Fama) have beenused as techniques to evaluate the performance of the funds.According to Mishra (2007) Indian financial system is stablein comparison to other Asian countries. Furthermore, there isan important role of mutual funds as a financial service in theIndian financial market. Bahl and Rani (2012) analysed theperformance of selected schemes with benchmark index tosee whether the scheme is outperforming the benchmark andstudy showed that 14 out of 29 sample mutual fund schemeshad outperformed the benchmark return.

MEMBER’S SECTION

Performance Appraisal on Mutual Funds:A study on banking sector diversified equity oriented

schemes of mutual funds since post global crisis

Mr. Pema Lama

Mr. Debasish Biswas

Assistant Professor, Department of Commerce, University of [email protected]

Lecturer, Department of Commerce, Umeschandra College, [email protected]


EIRC NEWS 8

Objectives of the study

Data Description

Research Methodology

b) The Treynor Technique:

The objectives of the study are:

To analyse the performance of the selected diversifiedbanking sector equity funds in the line of the risk returnparameters.

To examine the performance of selected schemes byusing the portfolio performance evaluation modelsnamely Sharpe, Treynor.

To evaluate the stock picking performance of the mutualfund managers in India by using Jansen alpha.

To examine the market timing ability of Indian fundmanagers to reward higher return to the investor by usingMazuy model.

The present paper investigates the performance of 18 equityoriented diversified banking sector mutual funds for theperiod April 2009 to March 2015. That means after globalcrisis. for calculating the return, risk of the schemes, monthlyNAV have been used. BSE - Sensex has been used for themarket measurement. 91-days Treasury bill used formeasuring risk free return.

Standard deviation has been used to measure the depreciationaround the mean, coefficient of variation was also utilised tomeasure the risk per return i.e. the deviation between standarddeviation and mean return and beta has been utilised tomeasure the systematic risk of an investment.

a) Return and systematic value of beta examines the averagesensitivity of an individual fund with the market return and italso measures the systemic risk of a portfolio. Mutual fundsare a diversified portfolio, thus the value of beta for a fund isnot unreasonable summary of its risk properties with respectto the 'systematic risk'. It is a fluctuation in the market index.To estimate the systematic risk, we will use the followingequation as follows.

Rp = + Rm+ p, Where, Rp is the average monthly return

of the mutual fund p. Rm is the average monthly return of the

market portfolio, are parameters to be estimated, and p is

the error term of the mutual fund p. Given that, a fund or astock with high beta responds strongly to variation in themarket. By contrast a fund or a stock with low beta isrelatively insensitive to variations in the market.

Tp = (Rp-Rf)/ p, Where Tp is

the Treynor's portfolio performance measure for fund p overthe evaluation period, Rp is the average rate of return for fundp over the evaluation period. Rf is the average risk free return

over the evaluation period, p is the beta of the fund over the

evaluation. Tm = (Rm-Rf)/ m, Where Tm is the Treynor

market performance measure for the market over theevaluation period, Rm is the average rate of return for the

l

l

l

l

α β ε

α β ε

β

β

β

market over the period, ?m is the beta for the market portfolioover the period. By comparing Tp (fund performance) withTm (market performance), it can be indicated whether thefund returns well or worse than the market portfolio for aparticular evaluation period.

Sp= (Rp -Rf)/ p, Where Sp is the

sharp's portfolio performance measure for fund p over theevaluation period, Rp is the average rate of return for fund pover the evaluation period, Rf is the average risk free return

over the evaluation period, p is the standard deviation of the

fund p over the evaluation period. The sharp's ratio (Sp)evaluates the performance of its level of total risk and highervalue of this ratio indicates that fund delivers a higher

performance by using standard deviation ( p). The value of

Sp can be compare with a similar measure of benchmark

index as follows: Sm=(Rm-Rf)/ m, comparing Sp (fund

performance) with Sm (market performance) it can beindicates where the fund portfolio is better or worse than themarket portfolio. Therefore, the difference between these twotechnique is that systematic risk is used by Treynor's ratiowhile total risk is alternatively used by sharp ratio .thus, thetwo measure should give similar ranking the portfolio is welldiversified and vice-verse.

E (Rp) = Rf + p [E (Rm) - Rf],

Jensen introduced the additional term p to represent a

consent periodic return (i.e. either positive or negative) thatan investor can earn in identified market risk .hence, this can

be represented as follows: (Rp - Rf) = p + p (Rm- Rf) + p,

Where (Rp-Rf) is the risk premium earned on portfolio p, p

is the random error term. Jensen technique uses p to indicate

the performance of a portfolio of a portfolio. This technique

uses regression procedures to estimate alpha i.e. is positive

and significantly higher than zero, then the portfolio can beoutperformed and vice-versa.

These are several procedures that havebeen proposed to correct the effect of timing ability on theestimation of beta. The first is a quadratic proposed by mazuy

technique. This regression model is (Rp - R ) = + (Rm-

Rf)+ (Rm- Rf) + p. Where Rf is the risk free return, , , 1

are the parameter of the model. Mazuy has argued thatestimated value of parameter beta one as measure of markettiming ability skill of the fund manager. If fund managercould able to select the time correctly, the estimated value ofbeta would be significantly positive. On the contrary if theestimated value of beta should not be significantly differentfrom zero, the fund manager are not be able to select themarket timing correctly

Its value ranges from 0 to 100 which meanthat all movements of securities are completely explained bymovements in the index. A high R (between 85 to100)indicates the fund's performance patterns have been in line

c) The Sharpe Technique:

d) The Jensen Technique:

e) Mazuy Model:

f) R - Squared:

δ

δ

δ

δ

β

δ

α β ε

ε

ε

α

α β

β ε α β βf

1

2


EIRC NEWS 9

with the index. A fund with a low R (70 or less) doesn't actmuch like the index.

General range for R - squared:

70-100% - Good correlation between the portfolio'sreturns and the benchmark's returns.

40-70% - Average correlation between the portfolio'sreturn and the benchmark's returns.

1-40% - Low correlation between the portfolio's returnand the benchmark's returns.

It refers to the total market value ofall the assets held in the mutual fund portfolio less theliabilities divided by all the outstanding units as on the NAVdate. It points out to 'book value' only. It measures how much

Ø

Ø

Ø

Net Asset Value (NAV):

each share of a mutual fund is worth. So essentially, the NAVof a mutual fund is the cost of one share of the fund.

Thus, NAV = Market price of securities + other assets -Total liabilities/units outstanding as on

the NAV date.

NAV = Net assets of the scheme/Number of unitsoutstanding,

= Market value of investments + Receivables+ other accrued Income + Other assets -Accrued expenses - Other Payables - Otherliabilities/No. of units outstanding as on theNAV date.


Interpretation

Table 1: Return, Risk and Diversification of Sample Schemes

Name of schemes Inception Return Risk Beta R2

HDFC Growth Fund 20-Aug-04 22.18 17.46 .831 .871

HDFC Mid-Cap Opportunities Fund 30-Dec-05 32.03 15.56 .301 .144

HSBC Dynamic Fund 28-Feb-05 14.45 15.61 .786 .920

HSBC Equity Fund 14-Nov-02 16.94 17.34 .854 .931

HSBC India Opportunities Fund 22-Jan-04 21.47 16.51 .799 .900

HSBC Progressive Themes Fund 12-Apr-05 16.47 22.39 .953 .696

ICICI Prudential Exports And Other Services Fund 13-Oct-05 29.99 17.30 .766 .753

ICICI Prudential Focused Blue-chip Equity Fund 01-Feb-06 24.51 17.47 .866 .943

ICICI Prudential Midcap Fund 18-Jul-05 28.86 16.77 .664 .602

ICICI Prudential Top 100 Fund 01-Jun-98 21.52 17.36 .853 .927

ICICI Prudential Value Discovery Fund 09-Jul-04 33.68 15.86 .653 .651

IDFC Equity Fund 14-Nov-06 19.92 21.11 -.008 .000

IDFC Arbitrage Plus Fund-Regular Plan 19-Apr-06 6.97 1.52 -.024 .091

IDFC Imperial Equity Fund 05-Sep-05 17.23 17.13 .849 .943

SBI Blue Chip Fund 23-Dec-05 24.20 17.70 .223 .061

SBI Contra - Regular Plan 06-May-05 19.93 16.92 .211 .060

SBI Emerging Businesses Fund 30-Jun-05 33.50 17.28 .192 .047

SBI Magnum Multiplier Fund 06-Jun-05 24.58 16.92 .176 .042

Source: Self computed by author(s)

Simply, we know that higher risk is associated with higherreturn if there is a positive correlation between risk and return.ICICI Prudential Value Discovery Fund gave return of 33.68%with risk of 15.86 followed by HDFC Mid-Cap OpportunitiesFund has risk of 15.56 but return is 32.03% but few schemesare their which have lower return but have higher return. LikeHSBC Progressive Themes Fund has risk 22.39 but only returnis 16.47%, followed by HSBC Dynamic Fund provide returnonly 14.45% with risk 15.61 that means these types of fundshave negative association between risk and return. IDFCArbitrage plus Fund-Regular Plan is the only one schemewhere the return is 6.97% but risk is 1.52. In this context of

beta, it has been observed from above Table 1 that all of ourselected schemes have registered a beta value which is close toone indicates that they belonged to higher level ofdiversification as well as strongly response to market. Featureof volatility are their but only two schemes have negative valueof beta. Most of the schemes like 11 schemes have higher valueof R2 that means the schemes performed well diversified. Butonly one scheme is their which has zero R2 and only 6 schemeshave lower R2 which is indicated that these schemes have notwell diversified. One thing, we observed that these schemeshave lower value of beta with lower value of R. Finally, it mayconclude that these schemes are not well diversified relative to

EIRC NEWS 10

insensitive in market variation. Only 5 schemes are there withlower amount of R2 and beta value but they all are provided

good return. That means, these schemes does not respondstrongly to market variation.


Table 2: Performance of sample schemes on the basis of Sharp and Treynor measure with ranking

Name of Schemes Sharp Ratio Rank Treynor Ratio Rank

HDFC Growth Fund .981 11 20362 10

HDFC Mid-Cap Opportunities Fund 1.73 2 89.63 3

HSBC Dynamic Fund .602 17 12.31 15

HSBC Equity Fund .6857 16 13.92 14

HSBC India Opportunities Fund .994 10 20.55 11

HSBC Progressive Themes Fund .501 18 11.79 16

ICICI Prudential Exports And Other Services Fund 1.44 4 32.56 8

ICICI Prudential Focused Blue chip Equity Fund 1.11 8 22.47 9

ICICI Prudential Midcap Fund 1.41 5 35.47 7

ICICI Prudential Top 100 Fund .948 12 19.61 12

ICICI Prudential Value Discovery Fund 1.80 1 43.91 6

IDFC Equity Fund .704 15 -185.72 18

IDFC Arbitrage Plus Fund-Regular Plan 1.26 6 -80.72 17

IDFC Imperial Equity Fund .716 14 14.34 13

SBI Blue Chip Fund 1.081 9 85.87 4

SBI Contra - Regular Plan .879 13 70.53 5

SBI Emerging Businesses Fund 1.64 3 148.18 1

SBI Magnum Multiplier Fund 1.15 7 110.97 2


Table 2 indicates the result of Sharp measure and Treynormeasure and it has been observed from the above table thathigher positive value of sharp measure was found in ICICI

Prudential Value Discovery Fund (1.80), followed by HDFCMid-Cap Opportunities Fund (1.73) and SBI EmergingBusinesses Fund (1.64). In this study, the sharp ratio was

Table 3: Ranking of sample schemes on the basis of Jensen Alpha technique

Name of the Schemes Alpha Rank t- value p- value

HDFC Growth Fund .021 11 1.98 .048

HDFC Mid-Cap Opportunities Fund .091 2 3.81 .000

HSBC Dynamic Fund -.007 17 -.900 .386

HSBC Equity Fund -.002 16 -.237 .813

HSBC India Opportunities Fund .019 12 2.261 .024

HSBC Progressive Themes Fund -.010 18 -.498 .619

ICICI Prudential Exports And Other Services Fund .055 8 3.910 .000

ICICI Prudential Focused Blue chip Equity Fund .028 10 4.054 .000

ICICI Prudential Midcap Fund .057 7 3.257 .001

ICICI Prudential Top 100 Fund .017 13 2.147 .032

ICICI Prudential Value Discovery Fund .077 3 4.965 .000

IDFC Equity Fund .060 6 1.72 .086

IDFC Arbitrage Plus Fund-Regular Plan .009 14 3.773 .000

IDFC Imperial Equity Fund .000 15 -.051 .959

SBI Blue Chip Fund .064 5 2.250 .025

SBI Contra - Regular Plan .047 9 1.747 .081

SBI Emerging Businesses Fund .103 1 3.687 .000

SBI Magnum Multiplier Fund .068 4 2.484 .013


EIRC NEWS 11

positive for all schemes which showed that funds wereproviding return greater than risk free return. It is also foundthat 14 out of 18 schemes have better Sharpe ratio incomparison to the bench mark portfolios. On the other hand,Treynor indicates the larger slope with better portfolio for allinvestor regardless of this risk preference and vice versa. Mostof the fund's performance is much better than marketperformance.

Table 3 revealed that 15 schemes have come out with positivealpha value which indicate superior stock selectivity if theirfund manager assuming their respective level of systematicrisk. But looking at their respective p-values, it is found that

none of their positive stock picking performance isstatistically significance ever at 5% level .On the other handonly 3 schemes have come out with negative alpha valuemeaning poor performance in the stock selectivity front.Among all schemes higher alpha was found with SBIemerging businesses fund (.103), followed by HDFC Mid-Cap Opportunities Fund (.091) and ICICI Prudential ValueDiscovery Fund (.077). So, investor should go for ownmoney investment into schemes after looking the value ofalpha as it will help to protect the investor from losing ownmoney. So, we can conclude that the fund managers stockpicking performance is good and acceptable.


Table 4: Result of Mazuy Model

Name of the Schemes Timing ability t-value p-value

HDFC Growth Fund -.006 -4.212 .000

HDFC Mid-Cap Opportunities Fund .022 7.127 .000

HSBC Dynamic Fund -.013 -15.139 .000

HSBC Equity Fund -.011 -11.275 .000

HSBC India Opportunities Fund -.008 -7.661 .000

HSBC Progressive Themes Fund -.017 -6.423 .000

ICICI Prudential Exports And Other Services Fund .001 .907 .684

ICICI Prudential Focused Blue chip Equity Fund -.005 -5.654 .000

ICICI Prudential Midcap Fund .004 1.943 .052

ICICI Prudential Top 100 Fund -.002 -2.432 .015

ICICI Prudential Value Discovery Fund -.007 -3.722 .000

IDFC Equity Fund .002 .399 .690

IDFC Arbitrage Plus Fund-Regular Plan .001 2.702 .007

IDFC Imperial Equity Fund -.001 -1.074 .283

SBI Blue Chip Fund .040 11.496 .000

SBI Contra - Regular Plan .037 10.496 .000

SBI Emerging Businesses Fund .034 9.845 .000

SBI Magnum Multiplier Fund .028 8.091 .000

Source: Self computed by author

As per above Table 4, Mazuy has argued that estimated valueof parameter beta one as measure of market timing ability skillof the fund manager. If fund manager could able to select thetime correctly, the estimated value of beta would besignificantly positive. On the contrary if the estimated valueof bets should not be significantly different from zero the fundmanager are not be able to select the market timing correctlyonly 5 schemes have positive and significant value of bets at1% level .that means fund managers of this schemes havegreater knowledge about marker timing ability. But only 4schemes have positive value of beta but they are notsignificant value at 1% level and only 9 schemes havenegative value of beta. So according to Mazuy, it is concludedthat most of the fund's manager of India does not see to be

engaged in market timing activities and market the time in thewrong direction.

Sharpe and Treynor r(1,2) .680* .000

Sharpe and Jensen r(1,3) .769* .000

Treynor and Jenson r(2,3) .789* .000

*Significance at the .01 level (2 tailed)

Table 5 provide a positive relationship or correlation betweenSharpe, Treynor and Jensen i.e. rank of Sharpe and Treynor

Table 5: Rank Correlation

Spearman's Rank r(i,j) p-valueCorrelation Coefficient

EIRC NEWS 12

and Jensen are less flexible. It also indicates that correlationbetween Sharpe and Treynor is .680, which is significance atthe 1% level. We obtained the same result in case of Sharpeand Jensen as well as Treynor and Jensen. So, we can concludethat fund manager's uniform stock selection performanceacross the measurement criteria.

The main purpose of this paper is to evaluate the performanceof 18 Equity oriented diversified banking sector mutual fundsin India duringApril 2009 to March 2015. Theoretical findingas well as outcome of the empirical analysis is summed up inthis chapter. All this selected funds are associated with higherreturn with higher risk and vice versa, that means significantrelation exists between risk and return of all selected funds.

More funds are performing better than marketperformance because Sp (fund performance) is betterthan Sm (market performance) during this studyingperiod which means funds are well diversified.

It should be noted that fully diversified fund would givesame ranking for both Sharpe and Treynor or Sharpe andJensen techniques. Here, rank correlation between

Findings and Conclusion

Ø

Ø

sharp, Treynor and Jensen are positive which indicatesthat they have good relationships.

In case of diversification score, majority of the schemeshave performed moderately well but are found to behighly volatile as their beta are very close to one.

Most of the funds have higher value of R-square thatmeans fund's performance pattern is quietly acceptablebecause the fund's performance pattern has been on theline with index and vice versa.

In India retail investor still depend on sources like brokerview, tips from friends and relative and media beforeinvesting in mutual fund. SEBI should come out withreasonable guidelines and educate through organisingseminar, workshops and symposia for new and inexperiencemutual fund investor and also try to encourage for launchinginnovative mutual fund products based on investor needs.Finally, mutual funds are one of the best investment sourcesavailable for Indian household investors to make aninvestment, if fund's performance appraisal is thoroughlyassessed, it will be very much helpful for the said investors toget big returns with little savings.

Ø

Ø


EIRC NEWS 13

Introduction

Telecom Sector in India

The growing importance of electronic communication systemin every sphere of life, made telecom sector an importantinfrastructure base that has immense importance in thedevelopment of any economy, and contributes substantiallytowards the national income of any economy. Continuousupgradation of communication technology and endeavour tomake telecommunication services available to the remotestlocation and to all sections of people, calls for huge financialrequirement. In such situation FDI plays an important role byintegrating domestic economy and foreign economy, andsupplements domestic capital bridging the gap betweenavailable domestic finance and required finance in theeconomy. Apart from liberalized foreign trade policies,taxation policies of host countries, the customer base in thehost country also serves as an impetus in attracting foreigndirect investors.

Indian telecom industry created many milestones over itsjourney. Initially telecom sector in India was a monopolymarket with the Government as the sole player. Separation oftelecommunication from Department of Post and Telegraphand creation of the new department, the Department ofTelecommunication in 1984 was a significant milestone.Telecom sector witnessed a phenomenal change withintroduction on National telecom Policy in 1994 and settingup of monitoring and regulatory body, Telecom RegulatoryAuthority of India (TRAI) in 1997.Aremarkable reform in thehistory of telecom sector in India was the opening up of thetelecom sector to private foreign investors. At present theprivate sector is playing a dominant role in Indian telecomindustry with a market share of 89.89% at the end of March2015, compared to market share of 10.11% of public sector.

Indian telecom sector, since its inception aimed atexpanding its customer base all over the nation and hasundertaken several initiatives for extensive coverage so as tomake telecom services available in remotest location and toall sections of people at affordable prices. Improvement in theinformation and communication technology all over theworld, touched Indian lives and Indian telecom industry has

shifted from core telephone products to mobile cellularservices and internet facilities.

Chart 1provides a picture of customer base of Indian TelecomIndustry as on 31st March 2015.

The total teledensity (i.e. number of telephones per 100populations) is 79.38%, 148.61% in urban area and 48.37% inrural area. Out of total 99.20 million Broadband subscriber15.52 million are wired subscriber and out of 83.68millionwireless subscriber 83.24 million are broadband users onmobile phones and dongles and 0.44million users are fixedwireless subscriber using WI-FI, WI-Max, Point to PointRadio and VSAT.Advancement of electronic communicationtechnology and convenience, affordability of the Wirelesstelecom technology and its capacity to reach out to themasses, has made wireless mode of tele-communicationmore preferable compared to the wireline mode.

Foreign Direct Investment (FDI) is an important instrumentthat integrates domestic economy and foreign economyand supplements domestic capital bridging the gap betweenavailable domestic finance and required finance in theeconomy that enhances domestic production, improves thefinancial market and enhances overall economicdevelopment of the domestic country. FDI in India gotimpetus with the Liberalization Policy introduced in 1991which opened the door for foreign participants to enter theeconomy. Improved foreign investment policies in thesubsequent years widened the scope of FDI. India's vastdomestic market, large pool of trained, skilled and educatedwork force, political stability, well developed social and

Chart 1 Customer base as on 31st March 2015

Foreign Direct Investment (FDI) in Indian TelecomSector

MEMBER’S SECTION

Foreign Direct Investment and Growth of Telecom Sectorin India - An Empirical Analysis

Leenapriya De

Lecturer, Sarsuna College, Kolkata, W.B, India


Particulars Wireless Wireline Total

Total Telephone Subscriber (million) 969.9 26.59 996.49

Urban Telephone Subscriber(million) 555.71 21.47 577.18

Rural Telephone Subscriber(million) 414.18 5.12 419.31

Overall Teledensity (%) 77.27 2.12 79.38

Urban Teledensity (%) 143.08 5.53 148.61

Rural Teledensity (%) 47.78 0.59 48.37

Broadband Subscriber(million) 83.68 15.52 99.20Source: Telecom Regulatory Authority of India

EIRC NEWS 14

physical infrastructure, investor friendly environment steadyeconomic growth made India an attractive destination forforeign investors. Another factor which made India afavourable destination for FDI is that all foreign investmentsare freely repatriable (net of applicable taxes) except in caseswhere foreign investment is subject to a lock in period andif NRI chooses to invest specifically under non repatriableschemes.

The immense role of FDI in infrastructure development andeconomic development of any nation is unquestionable.Telecom sector is an important infrastructure sector that needshuge financial resources and technical expertise fortechnological development of the telecom sector.

As per FDI policy in India, there are certain sectors where100% FDI is allowed and some sector where Govt. imposeslimit on FDI inflow and even some sectors where FDI is notallowed. In India FDI may take automatic route (i.e. withoutGovt. approval) or may require prior approval ofGovernment. Initially Government of India was conservativein its approach towards opening up of the telecom sector toforeign participants, by only allowing 49% of equity intelecom licensee to foreign companies and investors.However changing communication system, necessity ofupgrading Indian telecom network, and necessity to maketelecom services widely available to the masses compelledGovernment of India to revise the FDI policy of the telecomsector, by allowing total foreign equity in telecom licenseecompanies to the extent of 74 % in 2005.In 2013 theGovernment attracted additional foreign investment byallowing 100% foreign investment into telecom sector inalmost all telecom services including basic, cellular, unifiedaccess services, national/international long distance, VSAT,Global Mobile Personal Communications Services(GMPCS), all types of ISP, infrastructure providers(providing dark fibre, telecom towers, duct, space), and voicemail and100% FDI in manufacturing of telecom equipments.

Indian economy witnessed substantial flow of FDI to Indiantelecom sector over last two decade.FDI inflow to telecomsector in India from April 2000 to December 2015 amountedto Rs.91,027 crore ,which is 7% of total FDI inflow into thecountry. During 2014-15 FDI inflow to telecom sector is Rs.17372.32crore, which is 117.50 % more over previous year.

Indian telecom sector is opened to foreign direct investors forparticipation in almost all telecom services, basic and cellularservices and manufacturing of telecom equipments as well.This has led to rapid growth and expansion of Indian telecomsector .The following are some significant impact that FDI hason telecom sector:

Indian telecom sector needs to keep pace with the fast

Significance of FDI in Telecom Sector

Advancement of communication technologyl

changing Information and Communication technology.Improvement and continuous advancement intelecommunication technology needs huge finance andtechnical expertise for which FDI plays an importantrole in supplementing domestic capital and technicalexpertise to upgrade telecommunication technology.

The procedure of conducting trade and commerce hasundergone revolutionary change. Today trade andcommerce is more dependent on electroniccommunication system and online business is gainingpopularity over offline business. E- Commerce gotimpetus with FDI participation in telecom sector by itscontribution in finance and technical expertise.

FDI plays an important role in financing telecominfrastructure projects for expansion of telecomnetwork all over the country to make telecom servicesavailable at remotest location.

Improved Information and Communication technologyhelps extending tele communication network coverageall over the country. Thus FDI benefits the consumers byway making availability of telecom services easy and ataffordable prices.

in the study on relationship betweenFDI and telecommunication growth in Nigeria, showed thatconsumer subscribers, private investment and technologyhave a positive and significant relationship with FDI.

identified few factors like per capita income,urban population, literacy rate that influences the FDI inflowto telecom sector in India. Green (2005) "Stable exchangerates, limited inflation, the size of the relevant market andpotential for growth are key determinants in attractinginvestment."

opined liberal FDI policy encouragesFDI to infrastructure sector and that had led to the reductionof tariff significantly in mobile and long distance services andincrease of urban tele-density.

The study on telecom sector in Pakistan conducted by

revealed positive impact of telecom infrastructure (measuredby mobile cellular subscription) in attracting FDI inflow inPakistan.

presented a picture of telecom sector in Indiaand analyzed the scenario of FDI inflow to telecom sector inIndia.

provided an elaborate picture of

l

l

l

Improvement in trade and commerce

Network expansion

Consumer benefits

Literature Review

Oji-Okoro Izuchukwu

Green (2005)

Chennappa D (2005),

Nayyra Zeb, Fu Qiang & Muhammad Shabbir (2014)

Preetha (2011) Fathima, et.al (2013), Mahajan (2014),Gopika (2014)

Bansal and Gupta (2013)


EIRC NEWS 15

economic benefits derived from FDI in telecommunicationindustry in India.

in their study examined the impactof exports, imports of telecom sector on the growth of telecomsector and concluded that the exports of telecom equipmentscan enhance the growth of the telecom sector and can alsocontribute to the growth of service sector.

Role of FDI in economic development of the host country ishighly discussed issue and attracted attention of researchers anumber of times for study. Market base of telecom sector inthe host country may act as an important factor in attractingFDI into the host country. In this paper an attempt is made toidentify the impact of telecom services penetration in thecountry in attracting FDI in telecom sector in India.

The study is based on secondary data. The data is collectedf r o m t h e a n n u a l r e p o r t s o f D e p a r t m e n t o fTelecommunications (DOT), Ministry of Communications &Information Technology, Government of India, and TelecomRegulatory Authority of India, different reports ofDepartment of Industrial Policy and Promotion, Govt. OfIndia, Ministry of Commerce and Industry and data providedby World Bank and Reserve Bank of India.

The study covers a period of 20 years starting from 1995-96 to

Acharya and Patel (2015)

Objectives of Study

Data Collection

Methodology

2014 -15.In this study the following variables are used forformulating and testing hypothesis:

Foreign Direct Investment (FDI) equity inflow to the telecomsector in India is the dependent variable. Foreign DirectInvestment (FDI) equity inflow to the telecom sector in Indiais denoted by FDITEL.

Customer base of the telecom sector in India and penetrationof telecom services in India is the independent variable in thestudy. This is measured by -

i) Teledensity(%) denoted by TELDENSITY

ii) Mobile cellular subscriptions(per 100 people) denotedby MOBCELSUBSCRBR

iii) Fixed telephone subscriptions (per 100 people) denotedby FIXTELSUBSCRBR

iv) Internet users (per 100 people)denoted byINTRNETUSERS

Multiple regression model is used to study the impact ofmarket base of the telecom sector in India and penetration oftelecom services in India on FDI equity inflow to the telecomsector in India. The model is as follows:

FDI = + TELDENSITY + MOBCELSUBSCRBR

+ FIXTELSUBSCRBR + INTRNETUSERS.

The study is executed using EVIEWS version 8 .

Dependent Variable:

Independent Variable:

Tel 0 1 2

3 4

β β β

β β


Analysis and FindingsTable 1. Descriptive Statistics

Descriptive

Statistics

FDI In

Telecom

Rs.crore

Teledensity

%

Mobile cellular

subscriptions

(per 100 people)

Fixed telephone

subscriptions

(per 100 people)

Internet

users

(per 100

people)

Mean 4438.7845 28.1680 27.7740 2.9521 5.7906

Std. Deviation 4924.94044 30.96723 31.52878 .81854 7.29389

N 20 20 20 20 20

Compiled from annual report of Department of Telecommunications and World Bank report.

Table 1 gives the mean values and standard deviation values for Foreign Direct Investment (FDI) equity inflow to the telecom sectorin India, Teledensity(%),Mobile cellular subscriptions(per 100 people), Fixed telephone subscriptions (per 100 people) andInternet users (per 100 people).

EIRC NEWS 16

The Pearson correlation matrix gives the association amongthe variables. Mobile cellular subscriptions (per 100 people)has highest significant correlation 0 .784 with FDI in telecomsector at 5 % level of significance. The association betweenindependent variable Teledensity(%) and dependent variableFDI In Telecom (Rs.crore) is positive 75% and significantwith corresponding probability value of .000 at 5%level ofsignificance. The Pearson correlation value between Internet

users (per 100 people) and the dependent variable FDI InTelecom (Rs.crore) is positive 0.754 with correspondingsignificant probability value of 0.000 at 95 % confidencelevel. Fixed telephone subscriptions (per 100 people) hasnegative 26.5 % association with dependent variable FDI inTelecom (Rs.crore) with insignificant probability value of0.129 at 95 % confidence level.


Table 2 Pearson correlation

FDI In

Telecom

Rs.crore

Teledensity%

Mobile cellular

subscriptions

(per 100 people)

Fixed telephone

subscriptions

(per 100 people)

Internet

users

(per 100

people)

Pearson

Correlation

FDI In Telecom

Rs.crore1.000

Teledensity% .750 1.000

Mobile cellular

subscriptions

(per 100 people)

.784 .992 1.000

Fixed telephone

subscriptions

(per 100 people)

-.265 -.361 -.344 1.000

Internet users

(per 100 people).754 .911 .892 -.359 1.000

Sig. (1-tailed)FDI In Telecom

Rs.crore. .000 .000 .129 .000

Compiled from annual report of Department of Telecommunications and World Bank report.

Table 3 Coefficient Table

Variable Coefficient Std. Error t-Statistic Prob.

C 1901.450 2943.730 0.645932 0.5281

TELDENSITY -463.5828 193.4784 -2.396044 0.0301

MOBCELSUBSCRBR 484.8195 172.8149 2.805426 0.0133

FIXTELSUBSCRBR -118.8123 868.7401 -0.136764 0.8930

INTRNETUSERS 428.4385 225.1605 1.902814 0.0764

Compiled from annual report of Department of Telecommunications and World Bank re port

The coefficient table gives the t statistic value andcorresponding probability value. The above table shows thatteledensity (%) and Mobile cellular subscriptions (Per 100people) are statistically significant predictor of FDI inTelecom (Rs.crore) at 5 % level of significance. The

regression equation is as follows:

FDI ^=1901.450 - 463.5828TELDENSITY + 484.8195

MOBCELSUBSCRBR-118.8123 FIXTELSUBSCRBR +428.4385 INTRNETUSERS.

Tel

RR

Square

Adjusted R

Square

Std. Error of the

Estimate

Durbin-

Watson

F-

statistic

Prob(F-

statistic)

.856 .732266 .660871 2868.03002 2.185654 10.25645 0.000331

Compiled from annual report of Department of Telecommunications and World Bank report

Table 4 Model Summary

EIRC NEWS 17

The above table shows R2 value is .732266 which means 73%variation in FDI inflow to telecom sector in India is caused bythe independent variables. The Durbin Watson value is within1.5 and 2.5, which implies that there exists no auto correlationbetween the independent variables. The F value is 10.25645

with corresponding probability value of 0.000331 at 5 %level of significance; indicate that the value of R2 isstatistically significant and that all the independent variablesare good predictors of the dependent variable, FDI to telecomsector in India.


Table 5 Breusch-Godfrey Serial Correlation LM Test

F-statistic 1.770675 Prob. F(2,13) 0.2089

Obs*R-squared 4.281815 Prob. Chi-Square(2) 0.1175Compiled from annual report of Department of Telecommunications and World Bank report

The above Obs*R-squared value is 4.281815 with corresponding Prob. Chi-Square(2) value of 0.1175 provided by theBreusch-Godfrey Serial Correlation LM Test indicate that the residual is not serially correlated .

Table 6 Heteroskedasticity Test: Breusch-Pagan-Godfrey

F-statistic 2.668596 Prob. F(4,15) 0.0731

Obs*R-squared 8.315201 Prob. Chi-Square(4) 0.0807

Scaled explained SS 6.979640 Prob. Chi-Square(4) 0.1370

Compiled from annual report of Department of Telecommunications and World Bank report

The above Obs*R-squared value is 8.315201 withcorresponding Prob. Chi-Square(4) value of 0.0807provided by the Breusch-Pagan-Godfrey test forHeteroskedasticity indicate that the residual is notheteroskedastic .The Jarque -Bera statistic value of 1.407688with corresponding probability value of 0.494680 indicatethat the residual is normally distributed , indicating a goodregression model.

The above study indicates that mobile cellular subscriber baseand the internet users have a significant positive impact onFDI inflow to telecom sector in India.

Growing advancement of information and communicationtechnology has made communication system more easily

Conclusion

accessible to people at large. Wireless communication systemis gaining importance and popularity over the wirelinesystem, due to its extensive coverage. Necessity of extensivetelecommunication network coverage all over the nation andhuge requirement of fund for telecom infrastructure projectsmade Foreign Direct Investment to Indian telecom sector apreferred source of financing.FDI to telecom sector accountsfor 7% of total FDI inflow into India. Recent studies showthat the Indian telecom sector has been the most preferredsector for foreign investors. This study reveals that besidesliberalized FDI policy in telecom sector, increasing customerbase, high penetration of telecom services and increasingpopularity of wireless telecommunication network systemplays an important role in attracting FDI to telecom sector inIndia.

EIRC NEWS 18

Abstract

Key Words:

Introduction:

Tourism means the activities of persons travelling to andstaying in places outside their domestic environment for notmore than long time for leisure, business and other purposes.Tourism is an important economic activity which is nothing toproduce just to show the authenticity of nature. Tourism is adynamic and competitive industry that requires the ability toadapt constantly to customers' changing needs and desires, asthe customer's satisfaction, safety and enjoyment areparticularly the focus of tourism businesses. Tourismconstitutes a wide variety of sectors that provide diverseproducts and services to visitors. However, these businessesalso provide products and services to local residents. Tourismis some sort of stimulant from daily jog trot life. North Bengalis an important place in West Bengal where tourism is the basiclivelihood of local inhabitants. In every year, it facilitates hugeforeign exchange earnings as well as earnings from domestictourism also. North Bengal is the cultural cauldrons in WestBengal having places of sheer magic like the hill stations ofDarjeeling and Kalimpong, the lush green tea gardens ofDooars in North Bengal. This paper attempts to explore theissues and challenges as well as sustainability of tourism inNorth Bengal including how the scenic beauty gets misused inthe name of tourism. The analysis is based on primary datasupported some of the secondary data and findings arechallenging. Independent t-test as a non-parametric teststatistics and some graphical representation is highlighted toanalyse the issues and challenges in tourism in North Bengal.

Tourism, Economic Development, DomesticTourists, International Tourists, Culture & heritage.

North Bengal lends elegance to West Bengalwhich is irresistible and hard to match with that of any othertourist destinations of India. Tourism in Bengal has beengiven a short -in- the- arm, courtesy a slew of futuristictourism projects that promises to cater to the exacting needs ofthe discerning world traveller. The studied area is leasteconomically developed area in west Bengal. The physicalenvironment influences the type of economic activitiesespecially so in backward areas of Darjeeling Himalaya. Itseconomy is largely based on tea, agriculture & tourism. The

Darjeeling Himalaya constitutes a fragile and uniqueecological system. The region is frequently plagued byenvironmental catastrophes. It reveals from the study that thearea under study proves to be a complicated region requiringconsiderable care & attention in the matter of intensivedevelopment. The environmental feasibility and politicalviability easily welcome domestic as well as foreign tourists.Tourism can play the role of a non-invasive instrument ofrevitalization, conservation and growth. The watchwordwould be "Balanced Tourism Development" that will ensurethe type and scale of tourism development which iscompatible with the environment and social cultural milieu ofthe state. In this paper I discuss the environmental, social andeconomical challenges, advantages and lastly futuristicapproach of North Bengal.

The main objectives of this paperare:

(i) To discuss the source of economic development in thestudy area.

(ii) To examine the empirical relationship betweeneconomic growth and the environment.

(iii) To explore how economic growth declined due toenvironmental pressures.

(iv) To discuss the how rapidly scenic beauty gets devastatedand

(v) To suggest some recommendation for environmentalfriendly economic development

Classification of Tourism: The types of tourism in respect oftime can be classified in two types. These are discussedbelow:

Objectives of the study:

MEMBER’S SECTION

Sustainibility Tourism Analysis in North Bengal

Tama Dwibedi

M.COM, CMA (INTER). M.PHIL (Persuing)Assistant Professor of Dinabandhu Andrews Institute of Technology & Management

Formerly of Vidyanagar College, Amtala, South 24 Pgs.Formerly of Bankim Sardar College, South 24 Pgs.


TOURISM

SHORT TOUR LONG TOUR

? Less distance

? Less expensive

? High frequency

? Economic development of

local areas

? More distance

? More expensive

? Less frequency

? Economic development of

other than local areas

EIRC NEWS 19

Study Area: The study area is North Bengal speciallyDarjeeling. The Darjeeling Himalaya covers an area of 2476Sq. Km. spanning three Sub-Divisions of Kalimpong,Kurseong and Darjeeling. Broadly speaking, the DarjeelingHimalaya falls under subtropical perhumid climate with anaverage rainfall of 3104.5mm per annum, with an airtemperature of maximum 26ºC and minimum 4ºC. ThisHimalayan region is formed of comparatively recent rockstructure that has a direct bearing on landslides. However,

heavy monsoon precipitation is however a very commoncause of the landslides.

For detail discussion I broadly divide my paper into fourparameters. These are as follows:

A. Economical Parameters

B. Environmental Parameters or challenges

C. Social Parameters or challenges

D. Suggestions & Recommendations


Parameters of North -Bengal Tourism

Economical

Parameters

Environmental

Environmental

Parameters

Social

Parameters

Suggestions &

Recommendation

Agriculture

Tea

Animal

Husbandry

Horticulture

Tourism

Landslide

Depletion of forests

Pollution

Road

construction

Population

Pressure

Hotel

construction

Sewerage &sanitation

problem

Social Unrest

Increase of vehicles

Water Scarcity

EIRC NEWS 20

A. Economical Parameters:

(i) Agriculture:

(ii) Tea:

(iii) Animal Husbandry:

(iv) Horticulture:

Economical developmentdirectly increases the state income and also achievingequitable distribution of income. The reckless utilisation ofthese scarce natural resources would causes their exhaustionand degradation and thereby reduces productivity and by thisway our future generation will not get a scope to cherish thisprecious natural gift of god. The environmental resourceswhich are the main sources of revenue of North Bengal areenumerated below:

Agriculture in this region is mostly raindependant in all upper ridges and hill areas. Soil is generallyshallow. Orange, sinkona, tea, organic crops are the mainagricultural products of North Bengal. These conditionsnecessitate aggressive intervention in conserving the precioustopsoil during monsoon as well as harvesting life savingirrigation water for the dry months.

Darjeeling Hills has been producing finest quality teain the world fetching the highest price. Starting on acommercial scale in 1856 the present area under Tea Gardensis 19239 hectares producing 11-12 million Kgs. of tea peryear. Commercial tea production has been the mainstay oflivelihoods and economy in the Darjeeling hills for over 150years. The tea industry has played a pivotal role in the socio-economic lives of people of the region by providing directemployment to thousands of households and ancillary jobs tomany more thousands in chest-tea, plywood, tea packagingand other tea-related trades. The gradual declines of theDarjeeling tea industry from strong international competition,increasing production and labour costs, and decliningproductivity, and other factors, have affected the sustainablelivelihoods of plantation workers.

Livestock plays an important roleto uplift the rural economy in our country and more so in thehills. Animal Resources Development is one of the mostimportant sectors for economic growth of rural poor, marginaldestitute farmers and unemployed youth of the country withspecial reference to Darjeeling hills, where land holdingsamong these groups are significantly low and returns fromagriculture are diminishing. As such, successfulimplementation of the animal resources developmentschemes has been given priority by the State govt. for eco-friendly sustainable income generation among the localpeople in Darjeeling Himalaya.

Most of the farmers in these regions are

still practicing the traditional method of cultivatingtraditional crops like ginger millet, local varieties of paddy,maize and vegetables. It is, therefore imperative that theemphasis and development initiatives vis-à-vis agriculture beshifted to floriculture-horticulture crops in the hill areas ofDarjeeling District. The main fruit crops of the area aretemperate fruits like orange, plum, pears and peach. Besidethese, there are substantial areas growing banana, pineappleand guava. There is also scope for cultivation of passion fruitand its juice has great demand at present especially for theexport purposes.

Tourism is an important economic activity ofhill areas of Darjeeling District generating incomes andemployment for the local population. The multiplier effect isbased on the concept of interdependency of different sectorsof the economy the result of which is that any change in thehost economy's level of output, income, employment,government revenue and foreign exchange flows will begreater than the value of the initial change. The facilities andservices deteriorate sharply during the peak season as theamenities available cannot cope up with the huge rush. Thereare shortage of drinking water, electricity cut, deterioration ofmunicipal services, congestion in public transport and lack ofaccommodation all these leading to a chaotic condition. Notonly the visitors are inconvenienced and put to unnecessarytensions, even the local inhabitants get exasperated.

All economic activitieseither affect or are affected by the natural environment.Sustainable development therefore attempts to strike abalance between the demands of economic development andthe need for protection of our natural environment. It isbasically concerned with economic development in anenvironmentally responsible manner, keeping in mind theneeds of the future generations. The environmentalchallenges for destruction of the natural beauty are asfollows:

Landslides are most widespread naturaldisaster in Darjeeling Himalaya which increases its spatialextent day after day. For several natural causes and stronghuman impact on highly fragile and sensitive hill ecologicallandscape in form of deforestation, constructions the naturalstability are accelerated out. During landslide the livelihoodsecurity is lost and socio-cultural background of people islost.

(v) Tourism:

B. Environmental Parameters:

i. Landslide:


EIRC NEWS 21


Year Region Affected Area Damage Done

1998 Kurseong

Tindharia

250 houses damaged, NH-55

damaged,10 people died

Sittong T.E 13 people died

1999 Kurseong

Sitting III&I GP 9 people died

Tindharia 3 people died

2000

Sukhari Pokhari Pusumbing 2 People died

Bijanbari

Relling Basty 1 people died

Halthaley Basty 2 people died

Darjeeling Sadar

Botanical

Garden 1 people died

Jawar Bastey 1 people died

Kurseong Sepoydhara 2 People died

Darjeeling Sadar

Dali 11 people died

Harishatta 1 people died

2001 Kurseong Rohini 2 People died

2002 Kurseong Giddapahar 2 People died

2003 Mirik Gayabari 24 people died

2004 Sukhari Pokhari Mim. T.E 1 people died

2005 Kurseong(26-07-2005) Tindharia 1 people died

2006 Kurseong(15-09-2005) Kurseong 55 family homeless, no died

2007 Kalimpong(September) Kalimpong 7 people died (intense monsoon rainfall)

2008 Darjeeling (27-08-2008) Darjeeling 10people died

2009 Darjeeling(14-08-2009) Darjeeling 7 people died (Aila),22 houses damaged

2010

Kurseong(11-06-2010) Hatisura No people died

Kalimpong(16-06-2010)

Tripi Road of

upper Gumfa 3 people died, Serious injury of 2

Darjeeling(16-06-2010) Pagla Jhora no people died

2011 Kurseong(17-06-2011) Kurseong no people died(Heavy Rainfall)

2012

Darjeeling(2nd week of

September) Darjeeling

6500tea bushes uprooted(heavy rain

fall),NH-55 damaged

2013 Darjeeling(30-05-2013) Darjeeling 21 people killed(heavy rainfall)

2014 Darjeeling (10-08-2014) Darjeeling

35 families are homeless(heavy rainfall

and rising in water level of Teesta

River)

2015 Darjeeling (01-07-2015) Darjeeling

38 people died, 23 missing, more than

500displaced(overnight rainfall)

Table-1: Tabular Representation of Damages done by landslide from 1998-2015

EIRC NEWS 22

Graphical Representation of Landslide from 1998-2015

ii. Depletion of forests:

iii. Pollution:

C. Social Parameters:

i. Roadway Construction:

ii. Population Pressure:

North Bengal especially Darjeelinghills are covered by Pine, Far, Rhododendron etc. But formaking short term commercial profit, uncontrolled grazingand unplanned construction are the main reason for depletionof forests. A very large-scale deforestation over the fragilehill slopes has brought about an abrupt change in theecosystem in many areas and this has been aggravated by thefailure to replace the felled trees in the same form.

There's poison in the Darjeeling air and lungsare safer in Kolkata than in the Queen of the Hills, scientistshave claimed in a recent study. A team of environmentalscientists from the Bose Institute in Kolkata and the NationalEnvironmental Engineering Research Institute (NEERI) hasrevealed that the air over Darjeeling has high levels of VolatileOrganic Compounds (VOC) - much higher than the air overthe residential areas in Kolkata, Delhi or Mumbai. VOCs are agroup of carbon-based chemicals such as Benzene, Toluene,Ethylbenzene and Xylene that easily evaporate at roomtemperature. Vehicular pollution is the main source of suchcompounds. They have significant impacts both on humanhealth and on the environment. Exposure to some of theseVOCs like Toluene, Ethylbenzene and Xylene can lead to avariety of health problems such as red eyes, nose irritants andeven damaged liver and kidneys. What's more worrisome isthat these VOCs also help in the generation of ozone at theground level, popularly known as 'bad ozone', which in turncan cause bronchial and cardiac problems. Patients with upperrespiratory tract infections have definitely increased in thehills in recent times.

Social challenges hamper the scenicbeauty of North Bengal and these are mostly bottleneck in thedevelopments of this place largely.

For attracting more tourists apartfrom railway connection widespread road is connected to allparts of the country and for constructing new roadsGovernment has to destruct hills by charging dynamite. Thusthe ecology of this place gets worst.

The town of Darjeeling has seenfluctuation in the growth of population. However at anaverage the town is supported the growth rate of over 20% perdecade. From 1970 onwards the growth rate of Darjeeling

town has far exceed. In addition, this district is supported witha floating population of 20500 in the form of students,researchers, tourists. According to census of India, Kurseongtown had a population of 40019 in 2001 but in only six yearsthe population becomes 61416. This dramatic change inpopulation has great impact on environment. The study areais steep slopes of mountain spurs and therefore aerialexpansion of the urban centre has been restricted whichresults in very high concentration of population withinlimited space.

To accommodate morenumber of tourists and to provide them a high class luxury anumber of concrete hotels are constructed in the slope. Thesplendid view of Kanchenjunga together with a fragile chainof wooden house is wiped out and this creates a biodiversityproblem in "Queen of Hills".

Darjeeling towngenerates over 10.1MLD(2012) of sewerage. The sanitationconnection is not good in the studied area. According toDarjeeling Municipality office, 2002 report Darjeeling townproduces about 50 metric tons of solid waste every day.

Presently there are a largenumber of unregistered vehicles to accommodate the need oflocal habitants as well as tourists. The vehicles also do notfollow the environmental rules. These increasing number ofvehicles add Carmon-monoxide, sulphur-di-oxide gas in thefresh air of the place and injurious for the health of people.

Natural springs from Sinchal Range arethe main sources of water supply in Darjeeling town.However Darjeeling town still faces some problem regardingwater supply. The per capita availability of water in the townis far from the prescribed norms of 135 litters per day and only50% of the Municipal households are connected to theMunicipal water supply. The historic water supply problemhas gone from bad to worse position because of the gapbetween the demand and supply. It is a great threat to thetourism industry in Darjeeling.

Economy is composed of society and itsadministrative bureaucrats. Local bureaucrats are the majordecision makers and nodal agency for implementation of anygovernment policy and they give birth of local politicalhazards and cause tourists unrest which directly impacts uponinflow of foreign tourists and foreign exchange earnings inpeak seasons that ultimately affects not only foreign revenuein the form of balance of payments (BOP) but also hampershost area employment and fell into the tourism economy in anagile situation.

Darjeeling is attractive to tourists for its scenicbeauty. But rapid growth of population destroys its actual

iii. No. of hotel construction:

iv. Sewerage & Sanitation problem:

v. No. Of increase of vehicles:

vii. Water scarcity:

viii. Social Unrest:

Literature Review:

(1) Population Growth and Associated Problems: A CaseStudy of Darjeeling Town *Bishal Chhetri and °LakpaTamang:


EIRC NEWS 23

essence of nature and many times instead of earning revenue itmight be a cause of destruction. Several causes arebottlenecks this issue. Drinking water problem aggravates thehealth of the local inhabitants. The mesmerising NorthBengal gets lost its beautifulness and threatens severely bythese challenges.

It examined the contribution ofhistory to the understanding of tourism with special accountof ancient and medieval world; the Grand Tour era, Spas andseaside resorts.

Discussed Turkey's placewithin the mass versus 'responsible' tourism debate.

Empirically evaluated theconvergent validity in tourism research.

Analysed the impact ofunification of Germany and the general move towards freemarket-type economies in Eastern Europe and claimed that itwould create adverse effect on the interactional tourismdemand.

The high altitude mountain ecosystems are very fragileand sensitive to any sort of changes introduced by humanbeing. The critical balance of such ecosystem has largely beenoffset by the land-use / land cover changes for developmentpurposes. The natural processes are accelerated out ofproportion by strong anthropogenic modifications oflandscape through clearance of forest for agriculture,settlement, pasturing, mining and quarrying, water resourcecapturing, road construction etc. to invite hazardous eventswhich have dramatic impact on human property and lives.Thus humans have been instrumental for significant increase

(2) Wall and Towner (1991):

(3) Cooper and Ozdil (1992):

(4) Lego and Shaw (1992):

(5) Smeral and Witt (1992):

(6) An assessment of anthropogenic impact on naturallandscape-The case of Kurseong Town, Darjeeling, WestBengal, Nilanjana Das, Soumendu Chatterjee* and UtpalRoy:

in the frequency and magnitude of these hazardous events.Anassessment of anthropogenic impact on the natural landscapeis necessary for sustainability of the mountainous landscape,particularly in those urban areas where large volume ofpopulation throng together for livelihood.

To evaluate the scope tourists'arrival at Darjeeling a very short period of time extending twoyears from 2012 and 2013 have been selected and relevantsecondary data were collected from different sources likeannual reports of Darjeeling district and differentinternational as well as national literature review regardingthis issue.

The study is both empirical and explanatory innature. By analysing both primary and secondary data we usevarious descriptive statistics. To explore and gatherknowledge from tourists regarding the study area a primaryquestionnaire is used. The questions reveal the gap betweenexpectation and actual performance of the state and also theconcept of sustainable development of North Bengal. In orderto analyse the independency of parameters are extensivelyused chi-square test as non-parametric distribution free test.

We collect sample for data differentyears performance of tourism from publicly available datadisclosed by Ministry of Tourism and other respective links.Hence, there is justification of selecting the source foreconomic development. For primary questionnaire 60respondents are selected and on the basis of that the data arestatistically analysed.

The study shows the numberof tourists' arrival in Darjeeling, West Bengal in the year 2012and 2013 through bar diagram sown below with secondarydata related to that.

Methodology and Research Design:

(a) Time period of the study:

(b) Methods:

(d) Sample Selection:

(e) Graphical representation:


Month

2012-13 2013-14

Domestic

Tourists

Foreign

Tourists

Total

Tourists Domestic Tourists

Foreign

Tourists

Total

Tourists

April 48823 2034 50857 49042 1966 51008

May 82076 1085 83161 72988 945 73933

June 66730 468 67198 65434 425 65859

July 17511 609 18120 13395 430 13825

August 14521 687 15208 488 28 516

Sept 15151 1100 16251 5988 548 6536

Oct 45824 2511 48335 30334 2178 32512

Nov 41481 2029 43510 21860 3729 25589

Dec 39293 1181 40474 31051 3018 34069

Jan 25081 930 26011 22694 711 23405

Feb 18273 1170 19443 18719 973 19692

Mar 39518 2296 41814 45729 1527 47256

Total 454282 16100 470382 377722 16478 394200

Source: Department of Tourism, Gorkhaland Territorial Administration, Darjeeling

EIRC NEWS 24

Graphical Representation of TouristsArrival

Graphical Representation of Occupancy Rate ofRespondents in Darjeeling

(f) Interpretation:

Analysis and Interpretation:

Safety & Security of 2 Star Hotel and other Normal Hotel

Independent Samples Test

Analysis:

Safeness Pattern of Holiday Home & Hotels

Analysis:

If we analyze the safety and security parameters between twostar hotels and normal private hotels, the standard deviationof two star hotels is high in comparison with normal privatehotels. So respondents belong to two star hotel feel safer thannormal private hotels. For analyze this concept further weimprove our test statistic through Levene's Test. We getmeans -2.372 at 30 degree of freedom and significance arebetter that is 0.578. But in the studied area number of two starhotels is less than private hotels. If we think the costeffectiveness we can see that two star hotels are quiteexpensive.

According to safety and security parameters between holidayhomes and normal private hotels, the standard deviation ofholiday homes is high in comparison with normal privatehotels. So respondents belong to holiday homes feel saferthan normal private hotels. For analyze this concept furtherwe improve our test statistic through Levene's Test. We getmeans -1.773 at 40 degree of freedom and significance arequite better that is 0.736. But in the studied area number ofholiday homes is quite similar than private hotels. If we thinkthe cost effectiveness we can see that private hotels are quiteexpensive.


Group

Statistics

ACCM

N

Std.

Deviation

Std. Error

Mean

SAFE2STAR 4 2.75 1.500 .750

HOTELS 284.25 1.143 .216

Levene's Test for Equality

of Variances

t-test for Equality of

Means

F Sig. t df

SAFE Equal variances

assumed

.317 .578 -2.372 30

Equal variances not

assumed

-1.922 3.515

Group Statistics

ACCM

N Mean

Std.

Deviation

Std. Error

Mean

SAFE HOLHOM

E

14 3.57 1.222 .327

HOTELS 28 4.25 1.143 .216


Levene's Test for Equality of

Variances


Means

F Sig. t df

SAFE Equal variances

assumed

.115 .736 - 1.773 40

Equal variances not

assumed

-1.733 24.579

EIRC NEWS 25

Behaviour of Local Inhabitants of Holiday Home &Normal Hotels

Analysis:

Behaviour of Local Respondents of 2 Star Hotel & NormalHotels

According to behavioral aspect of local inhabitants betweenholiday homes and normal private hotels, the standarddeviation of holiday homes is high in comparison with normalprivate hotels. So respondents belong to holiday homes feelcordial attitude from the local residents than normal privatehotels. For analyze this concept further we improve our teststatistic through Levene's Test. We get means 1.294 at 40degree of freedom and significance is quite lower that is0.289. But in the studied area number of holiday homes isquite similar than private hotels. If we think the relationshipand attitude concept we can see that private hotels are quiteexpensive so better service might be expected from their partbut in the recent scenario gives that respondents are notsatisfied the service given by the private hotels.

Analysis:

Cleanliness of the StudiedArea of 2 Star Hotels & NormalHotels

Analysis:

Price of Accomodation &Food of 2 Star Hotels &NormalHotels

According to behavioral aspect of local inhabitants betweentwo star hotels and normal private hotels, the standarddeviation of two star hotels is low in comparison with normalprivate hotels. So respondents belong to normal private hotelsfeel cordial attitude from the local residents than two starhotels. For analyze this concept further we improve our teststatistic through Levene's Test. We get means 1.011 at 30degree of freedom and significance is quite lower that is0.350. If we think the relationship and attitude concept we cansee that private hotels are less expensive so better servicemight be expected from their part but in the recent scenariogives that respondents are pleased the service given by theprivate hotels.

According to cleanliness aspect of the studied area betweentwo star hotels and normal private hotels, the standarddeviation of two star hotels is low in comparison with normalprivate hotels. So respondents belong to normal private hotelsfeel sterile than two star hotels. For analyze this conceptfurther we improve our test statistic through Levene's Test.We get means -0.604 at 30 degree of freedom andsignificance is quite higher than that is -0.788. If we think thehygiene concept we can see that private hotels are morehygienic so better service might be expected from their part.In present scenario we see that private hotels contended thetourists most. So we presume that value for money is properlyutilized.


Group Statistics

ACCM

N Mean

Std.

Deviation

Std. Error

Mean

BEHAV HOLHOME 14 2.43 1.604 .429

HOTELS 28 1.86 1.208 .228


Levene's Test for Equality

of Variances


Means

F Sig. t df

BEHAV Equal variances

assumed

1.155 .289 1.294 40

Equal variances not

assumed

1.177 20.630

Group Statistics

ACCM

N Mean

Std.

Deviation

Std. Error

Mean

BEHAV 2STAR 4 2.50 1.000 .500

HOTELS 28 1.86 1.208 .228



Variances


Means

F Sig. t df

BEHAV Equal variances

assumed

.902 .350 1.011 30

Equal variances not

assumed

1.169 4.361

Group Statistics

ACCM N Mean Std. Deviation Std. Error Mean

CLEAN 2STAR 4 1.75 .957 .479

HOTELS 28 2.18 1.362 .257



Variances


Means

F Sig. t df

CLEAN Equal variances

assumed

1.882 .180 -.604 30

Equal variances not

assumed

-.788 4.940

Group Statistics

ACCM

N Mean Std. Deviation

Std. Error

Mean

PRICE 2STAR 4 3.00 .816 .408

HOTELS 28 3.61 .956 .181

EIRC NEWS 26

Analysis:

(g) Scaling of answers of respondents:

FuturisticApproach of North-Bengal Tourism:

Conclusion:

According to price phase of the studied area between two starhotels and normal private hotels, the standard deviation of twostar hotels is low in comparison with normal private hotels. Sorespondents belong to normal private hotels feel sterile thantwo star hotels. For analyze this concept further we improveour test statistic through Levene's Test. We get means -1.204 at30 degree of freedom and significance is quite higher than thatis -1.360. If we think the worth for money concept we can seethat private hotels are more cost effective. In present scenariowe see that private hotels contended the tourists most. So wepresume that value for money is properly utilized.

Likert scale aredeveloped by utilizing the item analysis approach wherein aparticular item is evaluated on the basis of how well itdiscriminates between those persons whose total score is highor low. To overcome this limitation we should check thereliability of respondents but in this paper we cannot do this.This is the very limitation of my paper.

1. A constant awareness to the local habitants and touristsare being given for sustainability of north Bengaltourism.

2. Proper remedial measures are to be taken for arrestingthe land slide problem in each year.

3. Proper promotional activity is carried on from the part ofGovernment for innovating newer tourist spot in North -Bengal.

4. Since the railway transportation is more convenient forthe respondents of the said primary questionnaire sofrequency of trains should be high.

5. One of the major industries in North Bengal is Tea-industry along with tourism. So proper measures aretaken for the development of this industry because itadds elegance to tourism industry in the studied area.

6. Concept of hospitality is also promoted to the localhabitants. They should understand that tourists are thesource of earning and key of economic development inthe studied area. So they behave properly.

Though Darjeeling is the "Queen of hill" inNorth Bengal which is famous for its mesmerizing naturalbeauty. Every year a huge number of tourists have attracted tothis place. So from the point of view of tourist's attraction isconcern Government has to take some steps to protect its

natural beauty and take some restrictions to give permit formotor vehicles but in the opposite side population isincreasing and it is a great threat upon natural beauty. So atfirst we should look after the sustainable developmentconcept of north Bengal and then increase in the influx oftourists otherwise future generation cannot get a chance torelish such a wonderful beauty of north Bengal.

1. How did you arrive to Darjeeling?

1. By own car

2. by bus

3. with lost cost airline

4. with major airline

5. by train

2. Where did you hear about this tourist destination?

1. I already knew of it

2. The internet

3. Friends and relatives

4. Media

5. Books and guides

3. What are the main reasons for your visit to this touristdestination?

1. Rest and relaxation

2. Visiting relatives and friends

3. Business records

4. Culture

5. Others

4. What are your response regarding the behaviour of localinhabitants in Darjeeling?

1. Rude

2. Friendly

3. Compassionate

4. Co-operative

5. Guest pro-active

5. What is the natural beauty of Darjeeling?

1. Unique

2. Lost its authenticity

3. Awesome

4. Mesmerising

5. Others

6. What type of accommodation will you choose foestaying in Darjeeling?

1. Government Lodge

2. Two star hotel

3. Holiday home

Appendix

Primary questionnaires are as follows:




Variances


Means

F Sig. t df

PRICE Equal variances

assumed

.930 .343 -1.204 30

Equal variances not

assumed

-1.360 4.272

EIRC NEWS 27

4. Home stay

5. Others Specify

7. What is about your perception about personal safe andsafety?

1. Very Good

2. Satisfiable

3. Good

4. Normal

5. Bad

8. What is the condition of local transport system?

1. Very Good

2. Satisfiable

3. Good

4. Normal

5. Bad

9. What is the position of cleanliness and hygiene factors ofDarjeeling?

1. Very Good

2. Satisfiable

3. Good

4. Normal

5. Bad

10. What is the price of accommodation and food fortourists?

1. Very high price

2. High Price

3. Same Price

4. Low Price

5. Vary from place to place

11. What is your overall experience about visitingDarjeeling?

1. Very Good

2. Satisfiable

3. Good

4. Normal

5. Bad

12. Who is accompanying you in this trip?

1. Friends

2. Family

3. Office Staff

4. Only wife

5. Others

13. What is your monthly income?

1. Less than 5000

2. More than 5000 but less than 7000

3. More than 7000 but less than 10000

4. More than 10000

5. No fixed pay

14. What is your education?

1. Upto 8th

2. Upto 10th

3. Upto 12th

4. Graduate

5. Post Graduate

15. Which gender do you belong?

1. Male

2. Female

16. What is your age limit?

1. 20-40 yrs

2. 40-60Yrs

Demographic Parameters:


STUDENT’S SECTION

EIRC NEWS 28

Test

You

r Kno

wle

dge

!!Quiz Master PageCMA Ajay Deep Wadhwa, Former Chairman, EIRC of ICAI

Answers:


1.Itistax-"Equalizationlevy"-tobeimposedoncross-borderdigitaltransactionofspecifiedservicesreceivedorreceivablebyanonresidentpermanentestablishmentinIndia.

2.Thesefundsarecreatedbyentrepreneurstopurchasedistressedassetsofthecompanies.

3.Zara4.Infybeam5.PahalScheme6.JIT(JustinTime)7.JanelYellen8.P.Chidambram9.GenerallyAcceptableCostAccountingPrinciples.

10.Patanjaly

1. What is 'Google Tax"?

2. What is Vulture fund?

3. Which is the largest apparel retailer of the world?

4. Which was the first Indian e-commerce company to issue IPO?

5. Which India "Cash Transfer" scheme has been included in "Guineas Book of World Records"?

6. What is the popular name of Toyota's famed Kanban technique?

7. Who is the present Federal Reserve Chair?

8. Who had the honor of serving as Finance Minister of India for the longest tenure?

9. Expand GACAP under Cost Records Rules.

10. Which Uttrakhand based Indian brand has become a competitive threat for major FMCG players of the country?

EIRC NEWS 29


Chapter Activities

Bhubaneswar Chapter of Cost Accountants :

CMA Siba Prasad Kar

CMA Bibhuti Bhusan Nayak

Mr Prabir Kumar PrustyDr. L. D. Sahoo

Howrah Chapter of Cost Accountants :

Bhubaneswar Chapter has been adjudged consecutively 19 times Best Chapter

Award as Category-A in the Eastern Region at National Regional Councils and Chapters Meet held at Munnar, Kerala on 26March, 2016 for its commendable performances in respect of Professional Development Activities, Students Activities &outstanding performance at all India Level, Infrastructure, numbers of Students and members enrollment through this Chapter etc.The award was received by CMA Bibhuti Bhusan Nayak, Chairman of the Chapter in the presence of CMA Bikram Keshari Das,Chairman, Professional Development Committee of the Chapter and CMA Saswat Tripathy, Member of the Managing Committeeof the Chapter, CMA Niranjan Mishra, Central Council Member and Chairman, Regional Councils and Chapters CoordinationCommittee, ICAI, CMA Shiba Prasad Padhi, Chairman, EIRC of ICAI and CMA C.Venkata Ramana, RCM, EIRC OF ICAI fromCMAManas Kumar Thakur, Vice President, ICAI.The Chapter has also received one “SpecialAward” with certificate of Scroll of Honour first time from the Institute for Conductinghighest programme at Eastern Region for the Professional Interest. The said award was received by CMA Bikrama Keshari Das,Chairman, Professional Development Committee, Bhubaneswar Chapter.The Chapter has organized one Career Awareness Programme in association with the UNITECH Residential College, Naygarh,Odisha on 14.04.16. , Chairman, Coaching Committee of the Chapter highlighted about the Profession,the facilities available at Bhubaneswar Chapter and how to become a Cost and ManagementAccountant at an early age and what arethe Career Prospectus, Chairman of the Chapter highlighted about the Cost and ManagementProfession and Role of CMA Professionals. All the students actively participated during interaction and most of them expressedtheir willingness to build their career as Cost and Management Accountant. , Academic Director,UNITECH Group of Institution and , Professor in Commerce also encouraged and advised the students to pursuethe Cost and ManagementAccountancy Course and highlighted about the career prospects.

On 12 March 2016, the chapter organized CEP program on 'Capital Market & FinancialMarket, Union Budget-2016 and Cost Audit & XBRL” at the Soumitra Memorial Hall at Chapter premises . CS Hansraj Jadia,Company Secretary, Tata Group of Industries explained on the Financial Market ,Security analysis & Portfolio Management,CMA CS Timir Baran Chatterjee, eminent Tax consultant explained on the recent changes proposed in the Union Budget -2016.CMA Kunal Banerjee, Past President explained in details on Cost Audit in different Industries with relevant examples, analyzed indepth, interacted with the practitioners, explained the role of the Cost Auditor in Industries. CMA Pranab Chakrabarty, Secretary,EIRC welcomed the eminent dignitaries and the members & professionals who attended the seminar. He also explained the recentactivities and future plan of the chapter towards this profession. CMA Bibekananda Mukherjee, Vice Chairman, EIRC explainedthe recent activities & future plan of the EIRC and the Chapter. It was a very nice interactive session and good number of membersin practice and from industry attended the session. CMA Jyotirmoy Auddy, Vice Chairman of the chapter concluded both thesessions with the vote of thanks. Howrah Chapter has conducted an Investor Awareness Program at Soumitra Som memorial Hall,1/2 Baje Shibpur Road, Shibpur Howrah -711102 on 30.03.2016. More than 100 participants from locality attended the program.CMAPranab Chakrabarty, Secretary, EIRC was the Chief guest.

th

th

th

NEWS

On 18 March 2016 EIRC organised a Workshop on “Compliances of ROC Matters”. CMA Debasis Chatterjee, Practising CostAccountant was the Resource Person and discussed issues that includes how to register a company, how to file various returns, howto search for company documents, winding up of a company etc.Annual Students Convocation was held at Science City Auditorium, Kolkata on 21st March 2016 and it was great to see rankholders and successful students receiving medals and awards from dignitaries like Shri Chandrashekhar Ghosh, Chairman andManaging Director, Bandhan Bank Ltd., Prof. (Dr.) Amiya Kumar Bagchi, Director, Institute of Development Studies, Kolkata,Prof. (Dr.) Malayendu Saha, Vice-Chancellor, University of Kalyani, Prof. (Dr.) Ajoy Kumar Roy, Director, Indian Institute ofEngineering Science and Technology, Shibpur, Mr. D. P. Despande, Managing Director, Tata Sponge Limited and Mr. BibekanandaMohanty, Registrar of Companies who felicitated and encouraged the successful candidates.

Regional Council & Chapters meet was organized on 26 March, 2016 at Munnar, Kerala. The Best Chapter award was given to thechapters of each region for their contribution towards the development of the Institute in terms of increase in student's strength,increase in member's strength and conducting number of workshops on professional Interest.

th

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EIRC Activities

EIRC NEWS 30


EIRC NEWS 31


EIRC NEWS 32


EIRC NEWS 33


EIRC NEWS 34


CEP program on 'Capital Market & Financial Market, Union Budget-2016 and Cost Audit & XBRL” at the Soumitra Memorial Hall wasorganized by Howrah Chapter on 12 March 2016.th

Best Chapter Award received by Bhubaneswar Chapter at Munnar,Kerala on 26.03.16 at National Regional Councils and Chapters Meet.

Special Award received by Bhubaneswar Chapter at Munnar, Keralaon 26.03.16 at National Regional Councils and Chapters Meet.

Printed & published by CMA Shiba Prasad Padhi on behalf of owner EIRC of ICAI, printed at Moodran Graphica,41, Gokul Boral Street, Kolkata - 700 012. Published at 84, Harish Mukherjee Road, Kolkata - 700 025.

Editor’s name : CMA Arundhati Basu

RNI No. WBENG/2008/24583

Publication Date : April 2016

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Eastern India Regional CouncilThe Institute of Cost Accountants of India (EIRC of ICAI)

[Statutory Body under an Act of Parliament]

CMA Bhawan, 84, Harish Mukherjee Road, Kolkata- 700 025

Telephones: (033) 2455-3418/5957/6666/9999, 6456 3600-03; 6450 4305

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