The Government of India in association with The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) and ASSOCHAM are jointly organized Seminar on “India Corporate Week – 2010” celebrations today at K.L.N. Prasad Auditorium, Federation House, Red Hills, Hyderabad.
Mr. P.D. Sudhakar, IAS, Special Secretary, Ministry of Corporate Affairs, Government of Indiawas participated as Chief Guest and he was release a book titled ““Industrial Development of Andhra Pradesh 1956 – 2010 Past, Present & Future”.Mr. R. Ramachandran,Chairman & Managing Director, Andhra Bank,Mrs. Renu Challu, Managing Director, State Bank of India, Mr. C. Sudhir Babu, Chairman, Company Law & CSR Committee, FAPCCI, A. Sambasiva Rao, Regional Director, RBI, Mr. Shekhar Agarwal, President, FAPCCI, Mr. V.S. Raju, Senior Vice President, Mr. Devendra Surana, Vice President, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. Hanumantha Rao, Sr. Journalist, Mr. S. Subba Rao, Advisor, Mr. Sudhir Garg, Chief General Manager, State Bank of Hyderabad, Mr. Ramesh Datla, Managing Director, Elico Limited, Jagannath Samavedam, Principal Ventureast Pvt. Ltd, Mr. Mir Ahmed Ali Khan, Managing Director, Focussoftnet Pvt. Ltd, Mr. R. Nanda Kumar, Sr. Vice President, National Stock Exchange, Rajan Bajpai, India Mart, Mr. M. Sreerama Murthy, Chairman, Industrial Development Committee, FAPCCI, Mr. Dayaniwas Sharma, Co-Chairman, Company Law & CSR Committee, FAPCCI and large number of businessmen’s are participated in the session.
Mr. P.D. Sudhakar said in his Chief guest address is that the Ministry of Corporate Affairs has taken various initiatives related to good corporate governance leading to responsible business and sustainable growth as well as greater participation of the common man in the capital market to make it broad based and its volatility dependent on domestic household savings rather than FII’s.
It has been our constant endeavour in the Ministry to consult the stakeholders, invite and welcome suggestions, recommendations and views from all quarters before revisiting any rules and regulations in order to make them in tune with the changing world. In the true spirit of partnership between the government and the business, as both are intrinsic parts of a democratic framework and as the structure of corporate governance which is essentially rooted in democracy, we need to bring our shareholders and stakeholders as real voices in the corporate democratic space wherein relations are defined by mutual trust and respect. With this background, we have taken the mottos of “corporate growth with enlightened regulations” and “corporate sector and inclusive growth” in the Ministry of Corporate Affairs.
In line with these mottos, MCA has taken a number of path breaking initiatives relating to corporate reforms, good governance and improved regulatory frame work for effective corporate functioning and investor protection. The major effort is in the form of Companies Bill, 2009 which seeks to replace the Companies Act 1956. The new proposed Act is modern and simple in its architecture and will provide a regulatory framework that enables the companies to achieve their aspiration of growth and expansion.
Let me just list out the major recent initiatives:-
ØComprehensive revision of Companies Act, 1956.
ØEnactment of LLP Act, 2008.
ØOperationalization of Competition Commission of India
ØNotifying the Accounting Standards and proposed convergence of these Accounting Standards with IFRS.
ØEstablishment of IICA – It is proposed to be a holistic think tank, capacity building, service delivery Institute to help corporate growth, reforms and regulation through synergized knowledge management, global partnership and real time solutions. It will be a platform for the Government, business, academia, professionals, civil society to converge for ongoing up gradation of corporate governance and functioning; and
ØVoluntary guidelines on corporate governance and corporate social responsibility.
A low level of participation of the retail investors in the corporate economy is a major cause of concern to all of us. Generating more and more awareness about the various issues related to capital markets makes the hesitant investors to understand the rights and responsibilities as well as their risks and returns. In a major initiative in this direction under the dynamic leadership of Corporate Affairs Minister, Mr. Salman Khurshid, who could not be present here today because of his engagement in party programme, we have organized 3000 programmes of investor awareness and education in the current year. A detailed Investors Guide to the Capital Market has been prepared which is easy to understand and explains the intricate issues of capital market in a lucid manner to common man. A still easier and brief version as a Beginner’s Guide to the Capital Market has also been prepared by the Ministry which is available in Hindi, English and 12 regional languages. A website for investor’s education and for providing answers to frequently asked questions have also been made available in 14 languages. The details of the websites are available on the Ministry’s website as well as in the booklets being circulated today. It is a matter of great pleasure that the IEPT website and a Beginner’s Guide in Telugu have been released last time.
I am sure that today’s programme will be successful in stimulating our confidence to participate more actively and constructively in the progress of corporate sector culminating into sustainable and inclusive growth of Indian economy. I find that very useful and topical subjects have been selected for the technical sessions planned for today. I am confident that these technical sessions will result in better understanding about these intricate and complex subjects.
Mr. Shekhar Agarwal said in his welcome address that we are all aware the MSME is the backbone of our national economy, providing and enabling employment for more than 75 million people directly and indirectly. MSME has the inherent characteristic of efficiently using maximum resources locally available to the satisfaction of its consumers. The MSME sector acts as a breeding ground for entrepreneurship, often driven by individual creativity innovation. The employment potential is higher than large industries, displaying a high degree of resilience and adaptability. MSME assumes the great significance, for meeting the national objective of growth with equality and inclusion.
Empowering MSMEs would mean giving them the freedom of entry and exit. Besides these enterprises should be incentivized to work toward capacity building policies should be so aligned to help units to grow from micro to medium and then large scale. It is in this context that the corporatization of SMEs assumes significance. For this greatest awareness should be created about the LLP Act pack which has paved the way for SME corporatization.
Mrs. Renu Challu suggested to the industrialists are those industrialists showing excellence in their product making, but they should concentrate in the financial prosperity, and they should make the marketable products. Then every bank will support like marketable products.
Mr. R. Ramachandran said that the Andhra Bank will give value to the MSME products, and we support in growing of such products and companies such as financing, marketing, product valuing, and business tie-ups as well as takeover issues.
Mr. Sudhir Garg spoke on “Banking Finance & Scope of Development & Sustainability of MSME”, and Mr. Ramesh Datlaon “MSME Scenario in A.P.”, Mr. Jagannath Samavedam on “MSME – Qualifying for Venture Capital”, Mr. Mir Ahmed Ali Khan on “Role of E-Business in MSME”, Mr. M. Sreerama Murthy on “Entrepreneurial Perspectives & Anticipations in MSME: An Overview”.
Mr. Devendra Surana honored the guests with Memento.