Corporate risk management – Brief Analysis
Corporate Risk Management is the essence of bigger organisation in long run. If the business is able to manage it's financial and operating risk in the effective manner it mean that it made it. CRM is a institutionalize approach which begins from laying down the process from identification of the risk to its mitigation.
Many of the bigger organisations have CRM as a separate department and the employee working under the department are basically the risk mitigation enabler. Companies that succeed in creating an effective CRM have a long-run competitive advantage over those that manage and monitor risks individually.
CRM many a times act centrally to the other entire department. For capturing the better picture look at the below chart.
Implementation of CRM governed by following key points-a) Inventory Risk- It involves identifying the risk to which the company is exposed. Risk may include both financial as well as operational. Now a days many biggies are working on assessing the strategic risk which is altogether a new and different piece of assessment.
b) Risk Categorization- Prioritizing the risk on the basis of its zone likewise High, Low, and Moderate. Formulation of Risk register may very well deal with it.
c) Risk Mitigation- The ultimate purpose of risk identification and categorization is to prepare for risk mitigation. Risk can't be avoided but it can be mitigated to reduce its effect in cases if it occurs. It may include alternative course of action which can be stress tested to check its usefulness.
d) Risk Monitoring – Mitigation doesn't ends up the CRM process. It is continuous process. The purpose of risk monitoring is to determine-
a) Risk mitigation plan has been implemented.
b) Risk response actions are as effective as expected, or if new responses should be developed.
c) Keep track of the identified risks.
I have tried to sum up the thing in precise manner otherwise the topic is much wider and there are no. of books, articles capturing the topic in a beautiful manner. CRM is a newly addressed subject which still requires a lot of research work. Hope you will like it!
Article by –
Anubhav Jain (CA Final),Kota (Rajasthan),
Email- anubhav5jain@gmail.com
In a reply to an application under RTI Act filed by CA Subin V R from Thrissur Income Tax Department has revealed the total amount collected under section 234E of the Income Tax Act in the financial year 2013-14 and from April 2014 to October 2014. As per the reply order dated 22-12-2014 the amount so collected is as under
Penalty U/s. 234E fetches revenue of whooping Rs. 17497 crores
CA Sandeep Kanoi
Income Tax Department has collected whooping Rs. 17497 crores as late filing fees for delayed filing of TDS/TCS quarterly return for the period from 01-04-2013 to 31-10-2014 i.e. in just 19 months.
In a reply to an application under RTI Act filed by CA Subin V R from Thrissur Income Tax Department has revealed the total amount collected under section 234E of the Income Tax Act in the financial year 2013-14 and from April 2014 to October 2014. As per the reply order dated 22-12-2014 the amount so collected is as under:
| Period | Count | Amount Collected in Rs. Crores |
| Financial Year 2013-14 | 186549 | 10134 |
| April 2014 to October 2014 | 127839 | 7363 |
| Total | 314388 | 17497 |
The section 234E related to levy of late fee for default in furnishing TDS/TCS Statements has become effective from 01-07-2012. According to the provisions of section 234E, where a person fails to deliver or cause to be delivered a statement within the time prescribed then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. But the amount of fee shall not exceed the amount of tax deductible or collectible, as the case may be.
It is to be noted that various High Court has already granted stay against Recovery of Late fees U/s. 234E for default in furnishing TDS/TCS Statements. Details of Such cases is as follows :-
- Adithya Bizorp Solutions India Pvt. Ltd vs. UOI ( Karnataka High Court)
- Narath Mapila LP School vs. UOI (Kerala High Court)
- Om Prakash Dhoot vs. UOI (Rajashthan High Court)
- Rashmikant Kundalia Vs. UOI (Bombay High Court)
- Shree Builders Vs. UOI (M.P.High Court)
Recently ICAI has in its pre-budget Memorandum requested government to Give Amnesty to TDS deductors from Fees under section 234E for defaults in respect of all TDS statements pertaining to FY 2012-13 and FY 2013-14 and also requested the time limit to file quarterly TDS return for non-government deductors be also increased to 30 days as available to the government deductors. But the government has not accepted the same. Read More-Give Amnesty to TDS deductors from Fees under section 234E – ICAI
So Section 234E Late Fees become a Milking Cow for the Government and there seems to be no possibility of it been taken back by the Government considering the Huge Revenue impact it may have.
Govt. notifies 35 institutions & their eligible schemes for deduction U/s. 35AC
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 12th December, 2014
S.O. 3171 (E).— In exercise of the powers conferred by Sub-section (1) read with clause (b) of the Explanation to Section 35 AC of the Income Tax Act, 1961 (43 of 1961), the Central Government, on the recommendation of the National Committee for Promotion of Social and Economic Welfare, hereby notifies the institutions approved by the said National Committee, mentioned in column (2) of the Table below, and approves the eligible projects or schemes specified to be carried on by the said institutions and the estimated cost thereof as mentioned in column (3) of the said Table, and also specifies in the column (4) of the Table the maximum amount of such cost which may be allowed as deduction under the said Section 35 AC for the period of approval, namely:—
TABLE
| Serial No. | Name of the Institution | Project or scheme and estimated cost thereof | Maximum amount of cost to be allowed as deduction undersection 35AC and period of approval |
| (1) | (2) | (3) | (4) |
| 1. | Swa-Roopwardhinee 22/1, Mangalwar Peth, Parge Chowk,Pune – 411 011. Maharashtra | 1. Integrated Development of Girls, Boys and women from slum dwellers in Pune city and villages around Pune city &2. Construction of multifaceted training centre at Charholi Budruk, District Pune. (Rs. 9.67 crore) | The Committee recommendedapproval for the project at the estimated cost of Rs. 9.67 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 2. | Sushrut Medical Care & Research Society,Hardikar Hospital 1160/61,Shivajinagar Ganeshkhind, Pune – 411005 | 'SUSHRUT AROGYASEVA' (Free/Subsidized treatment to rural people in the event of Trauma)(Rs. 23.64 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 23.64 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 3. | Centre for Rehabilitation Services and ResearchAt/Po – Charampa, District, Bhadrak 756101 Odisha. | Hi-tech Nursing Training-cum- Treatment centre Mobile Health Care Unit Programme''(Rs. 5.71 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 5.71 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 4. | Lakshmi Rural Development Society, No. 329, MEI Layout Bangalagunte, Hesaraghatta Main Road, Nagasandra Post, Bangalore- 560073 | Aadivasi Aani Magas Varga Kanya Vocational Training Center. (Rs. 4.64 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 4.64 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 5. | Tirupur School for the Deaf Kothapalyam, Vanjipalayam (PO), Tirupur – 641663. | Programme for Development of Hearing and Speech Challenged Children(Rs.1.95 crore) | The Committee recommendedapproval for the project at the estimated cost of Rs. 1.95 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016- 17 |
| 6. | Samaj Pragati Sahayog, Bagli,District Dewas – 455227 Madhya Pradesh | Towards Livelihood and Food Security in India'[Rs.10 crore (Corpus Fund)] | The Committee recommendedapproval for the project at the estimated cost of Rs. 10.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17. |
| 7. | Home of Hope International#73, Kristuraja Nagar,Ganapathy Maa Nagar Coimbatore – 641006 | The Boarding School For Orphan Children(Rs. 698.50 lakh) | The Committee recommended approval for the project at the estimated cost of Rs.698.50 lakh for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 8. | Islamia Educational & Charitable Society,Mohalla Abul Mali Deoband, near Indira Park Distt. Saharanpur, U.P. Pin- 247554 | Islamia Group of College (Rs.17.26 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 17.26 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 9. | International Foundation for Research and EducationFarm House-2, Green Avenue Lane, D-3 Vasant Kunj, New Delhi – 110070 | 'Higher Education for All' (Rs. 37.63 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 37.63 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 10. | Sadbhav Foundation101, Centre Point Jijibhai Lane, Opp. Parel Post Office Lalbaug, Mumbai – 400012 Maharashtra. | 'Expansion of present activities' (Rs. 3.00 crore) | The Committee recommendedapproval for the project at the estimated cost of Rs. 3.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016- 17 |
| 11. | Shree Sheshwatar 1008 Shree Kallaji Vedpeathevam Shodh Sansthan,Kamdhaj Nagar, Nimbahera – 312 601 | Vedas-mart, Sustainable and Inclusive Growth Model Project for SC/ST/OBC BPL Categories Students(Rs. 8.05 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 8.05 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 12. | Digvijay Lions Foundation, Manav- Seva Mandir,Opp: Civil Hospital Gate No. 3, Asarwa, Ahmedabad-380016 | Up-gradation and extension of Running Project "Sanatorium" for Cancer, Kidney & Heart Patients(Rs. 12.61 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 12.61 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 13. | Stairs,Shivpoojan Plaza, Hata, Kushinagar, Uttar Pradesh – 274 303 | 'Project Proposal for promotion of sports and games for empowerment of youth' (Rs.11.52 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 11.52 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 14. | National Council for Climate ChangeSustainable Development and Public Leadership (NCCSD) Post Box No. 4146, Navrangpura Post Office, Ahmedabad – 380 009 | Global Warming Sustainable Livelihood for small farmers,promotion and extension of mitigation and adoption practices (Rs. 16.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 16.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 15 | Cancer Institute (WIA) Gandhi Nagar, Canal Bank Road, Adyar, Chennai – 600 020 | For providing treatment totally free or highly subsidized to general ward patients at Cancer Institute (WIA), Adyar Chennai(Rs.12.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 12.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 16. | Divyajyoti Trust Tejas Eye Hospital,Suthar Falia Opp. Hanuman Temple At. PO. Mandvi, Distt. Surat – 394160 | Tejas Eye Hospital(Rs. 3.6 crore as Corpus Fund) | The Committee recommended approval for the project at the estimated cost of Rs. 3.6 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 17. | Vasantha Lakshmi Charitable Trust & Research Centre16-11/131, Kasturidevi Nagar, Pogathota Nellore – 524 001 A.P. | "SAMRAKSHANA" TheHolistic Rehabilitation & Therapeutic Center for Multiple Disabled, Autism and Cerebral Palsy (Rs. 1195.38 lakh.) | The Committee recommended approval for the project at the estimated cost of Rs. 1195.38 lakh for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17. |
| 18. | Tapobhoomi Trust HanspalChhak,Maharkanta, Bhubaneshwar 752 101 | Gram Swaraj Transfusion of Biodiversity and Livelihoods for self sustenance(Rs. 11.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 11.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 19. | SwathiThirunalKalakendram Trust Thiruvannur Nada, Calicut, Kerala -673029 | Music Therapy Research Centre (Rs. 15.39 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 15.39 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 20. | Shri Anandjibhai Motibhai Patel Charitable Trust"Tapovan" Near K.P. Boarding, 60 Feet Road, Wadhwan – 363035 | Establishment and RunningEducational and Hospital Facilities (Rs. 19.48 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 19.48 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 21. | Arogya Sandhan Charitable Trust 2, RamkrishnaSarniEastern Park, Santoshpur, Kolkata – 700 075 | Vocational Training Center for destitute and economically weaker section children through need based inputs, 100% free of cost(Rs. 5.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 5.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 22. | Mukund Education Society Opp. Circuit House, Civil Lines Washim – 444 505 | Sanmati Engineering College (Rs. 8.54 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 8.54 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17. |
| 23. | Rayat Shikshan Sanstha 51 B/51 C, Raviwar Peth, Satara-415 001Maharashtra | Construction of 40 schoolbuilding at various places in Maharashtra, undertaking computer literacy programs and quality enhancement of Ashramshalas (tribal school) (Rs. 99.25 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 99.25 crore for three financial years commencing with financial year 20 14-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 24. | Institute for the Handicapped and Backward People44, Chanditala Branch Road, Behala Kolkata – 700 053 – West Bengal | 'Sustainable Education &Training for Rural Poorest Disabled Children, Women for Socio-Economic Development through civil societies & Local NGOs' (Rs. 6.94 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 6.94 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 25. | Tata Sponge Iron Limited At/PO Joda, Dist – Keonjhar Odisha – 758038 | 'Pragati'(Rs. 6.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 6.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 26. | Srinivasa Educational Society,11/303, Kolap Building, Opp. Bhagatsingh Bagh, Ichalkaranju, Tal: Hatkanangale Distt. Kolapur, Maharashtra | Vocational Training for unemployed Rural women, entrepreneurship training to school leavers(Rs. 5.40 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 5.40 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 27. | Relief & Welfare Society for the BlindPlot No.15, Gate No. 5, Old Collector Compound, Malwani, Malad(W), Mumbai – 400 095. | Relief and Welfare for the Blind (Rs. 2.84 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 2.84 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 28. | Professional Assistance for Development Action (PRADAN)E-1A, Kailash colony, New Delhi- 110 048 | Developing Human Resources for change: Catalytic Leadership Programme(Rs. 50 crore as Corpus Fund for Five Years) | The Committee recommended approval for the project at the estimated cost of Rs. 30 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 29. | Heritage Culture Art and Education Development Society C/o Samarth Apartment, B-203,Satawali Road, AT. Post Lanja Town Ratnagiri, Maharashtra – 416701. | Construction of School Building (Rs. 27.15 lakh) | The Committee recommended approval for the project at the estimated cost of Rs. 27.15 lakh for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 30. | Pumpkin House for Children TrustPlot No.4, Vidhyanagar Nagar Daund Road, Ahmednagar Maharashtra – 414005 | 'Rehabilitation of Destitute and Economically weaker sectionchildren through providing education and shelter, free of cost' (Rs. 6.80 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 6.80 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 31. | Mahatma Gandhi University of Medical Sciences and Technology19-20, RIICO Institutional Area, Sitapura, Tonk Road, Jaipur | 'Mahatma Gandhi Oncology Centre'(Rs. 46.50 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 46.50 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17. |
| 32. | Ridhi Foundation Trust 145/1129, Kalapinagar, Last Bus StandAsrva, Ahmadabad | Mobile Hospital cum Lab (Rs. 8.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 8.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 33. | Vaishali Education Trust Murgesh ChambersOpp. Krishnanagar B.R.T.S. Bus Stop, Narodan Ahmadabad | Expansion for providing education to orphan and BPL children, 100% free of cost(Rs.8.00 crore) | The Committee recommended approval for the project at the estimated cost of Rs.8.00 crore for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 34. | Rahul Foundation21 Princep Street, 1st Floor, Kolkata – 72 | Multi-Specialty Hospital & Cancer Detection(Rs. 1300.00 lakh) | The Committee recommended approval for the project at the estimated cost of Rs. 1300.00 lakh for three financial years commencing with financial year 2014-15, i.e., 2014-15, 2015-16 and 2016-17 |
| 35. | National Agro Foundation Research and Development Center,Anna University Taramani Campus, CSIR Road, Taramani Chennai – 600 113 | Rural upliftment programs in India with special focus on Tamil Nadu and Andhra Pradesh(Rs. 12.45 crore) | The Committee recommended approval for the project at the estimated cost of Rs. 12.45 crore for three financial years commencing with financial year 20 14-15, i.e., 2014-15, 2015-16 and 2016-17. |
II. This notification shall remain in force for a period of three years in relation to financial years 20 14-15, 20 15-16 and 2016-17 in respect of the projects or schemes mentioned at serial numbers 1 to 35 of the Table above.
[No. 1/ 2014/F. No. V.27015/3/2014-SO (NAT.COM)]
MAKKHAN LAL MEENA,
Dy. Secy. (National Committee)
__._,_.___
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