Is ICAI fair in advancing the implementation of AS-30

ICAI has advanced the adoption of AS-30 by the corporates under the pretext of "prudence accounting". AS-30 was earlier mandatory by April, 2011. AS-30 requires companies to report their outstanding derivative contracts at market values. This has put the corporates in a fix. They will now have to disclose the mark to market losses on their outstanding forex derivative contracts. With the rupee appreciating by almost 12-15% last year, analysts put the corporate losses at Rs. 15000 cr. Valuations will take a huge beating. Bottomlines of companies may hit new bottoms. However there are section of people who feel that reporting of derivative losses will increase transparency and protect investors interests.

Is RBI justified in hiking the CRR rate?

RBI recently hiked the CRR rate by 0.5% in order to control the inflation which is at a 3 year record high. This anti-inflationary move is expected to suck out liquidity from the banking system to the tune of Rs. 18500 cr. But it also puts corporate investments in a spot of bother as banks will have less funds to let out. In such a macro economic situation the RBI move has received a mixed response.

Do you think the hike in fees by IIM's Justified?

The IIMs have increased the fees for their two year post graduate management programmes. Leading the pack is IIM, Ahmedabad with a stupendous 175%. The increase at other IIMs is moderate though. The hike is also viewed as the show of the monopolistic powers that the IIMs enjoy. The IIMs have defended the hike under the pretext of rising cost inflation & recommendation of the Sixth Pay Commission. Given the fact that the IIMs also earn revenues from consultancies & executive training programmes, is the hike in the first place required, and if yes, is the quantum justified. Finance will now be a major issue for the students. Post the hike era, will the IIMs continue to enjoy the respect and support from the students it so far had; will they be able to tap & churn out the same quality of students? These and many more such issues await a response….

Budget' 08

Do you think the Budget is a populist one? How has it benefitted you? Let us know your opinion here.