JUNE 2022

Capital Markets

· Prices of Wheat have jumped to highest since Equity Markets May-22 April-22 Change%
2008 in International market as Russia and Sensex 55,566 57,061 -2.62%
Ukrain supply quarter of world’s wheat exports Nifty 50 16,585 17,103 -3.03%
and production is likely to be lower in this year BSE 500 22,498 23,552 -4.48%
due to war. There is a strain on African countries BSE Bankex 40,907 41,534 -1.51%
as at least 25 African countries import a third of BSE Consumer 37,999 42,667
their wheat from Russia and Ukraine. India has Durables -10.94%
announced an export ban on wheat due to rising BSE Healthcare
prices. BSE FMCG 22,467 24,341 -7.70%
14,167 14,082 0.60%
Trends in Secondary Markets:

BSE Sensex was bearish and closed at 55,566 points
in May 2022 down by 2.62%. Nifty 50 closed at
16,585 that is 3.03% correction in the month of
May. The correction was on account of raising of
interest rates by RBI, inflation concerns and global
outlook.

Foreign Institutional Investors (FIIs) divested
Rs.54,292 Crore (Net Sales) while Domestic
Institutional Investors (DIIs) invested Rs.50,835
Crore (Net purchases) from the Indian equity
markets in the month of May 2022.

Ahmedabad Chartered Accountants Journal June, 2022 189

Capital Markets

· All BSE Indices were in red in the month of Mergers and Acquisitions (M&A) and Private
May, except Auto and FMCG. Equity (PE) key deals:

· Shares of Oil marketing companies, Indian Oil, M&A: Adani buys Holcim’s stake in Ambuja
Bharat Petroleum Corporation and Hindustan Cements and ACC Ltd:
Petroleum were down due to rising crude oil
prices which hurt their refining margins. Transaction:

Primary market Update: · The Adani Family, through an offshore special
purpose vehicle, announced that it had entered
There were eight main board IPOs in May, of into definitive agreements for the acquisition of
Campus Active wear Limited, Rainbow Children’s Switzerland-based Holcim Ltd’s entire stake in
Medicare Limited, Life Insurance Corporation of two of India’s leading cement companies –
India (LIC), Prudent Corporate Advisory Services Ambuja Cements Ltd and ACC Ltd.
Limited, Delhivery Limited, Venus Pipes & Tubes
Limited, Paradeep Phosphates Limited and Ethos · Holcim, through its subsidiaries, holds 63.19%
Limited as against three IPOs in April 2022. There in Ambuja Cements and 54.53% in ACC. The
were four SME IPOs in May as against three SME value for the Holcim stake and open offer
IPOs in April 2022. consideration for Ambuja Cements and ACC
was USD ~10.5 billion.
From 8 IPOs that came out in May, which were all
fully subscribed by the investors, 5 of the IPOs have About Holcim:
given negative returns till date with 4 of the IPOs
listed at discount on listing day. The much discussed · The Holcim Group, formerly Lafarge Holcim,
mega IPO of LIC, which is country’s largest IPO is a Swiss MNC that manufactures building
till date and which got subscribed 3 times due to materials such as cement, aggregates and ready
heavy demand, also tanked and listed at 9% discount mix concrete. It has a presence in around 70
on listing day with prices going down substantially countries, and employs around 72,000
post listing. employees.

While underwhelming performance of IPOs in · Ambuja Cements and ACC currently have a
2022 can be attributed to general weakness in stock combined installed production capacity of ~70
markets, it also stresses the point that there are both MTPA. Two companies have 23 cement plants,
good quality and poor quality IPOs and retail 14 grinding stations, 80 ready-mix concrete
Investors could avoid applying to every IPO just plants and over 50,000 channel partners across
for easy listing day gains. India.

Particulars Mar-22 Apr-22 About Adani Group:

I. Equity Issue 4,461 19,588 · Adani Group is a diversified organization
a. IPOs (i+ii) 175 519 headquartered in Ahmedabad, India with market
i. Main Board 0 390 cap of over $170 Bn, comprising of 7 publicly
ii. SME Platform 175 129 traded companies.
b. FPOs 0
c. Equity Rights Issue 4,300 · Group has presence in port management, electric
d. QIP/IPP 878.9 138 power generation and transmission, renewable
e. Preferential Allotment 2,079 959 energy, mining, airport operations, natural gas,
1,329 food processing and infrastructure.
13,675
Rationale:
II. Debt Issue 39,903 14,750
· This is the largest acquisition of Adani group till
a. Debt Public Issue 178 384 date and make Adani second largest cement
player in India (Capacity of ~70 MTPA) after
b. Private Placement of Debt 39,725 14,366

Total Funds Mobilised (I+II) 44,364 34,338

190 Ahmedabad Chartered Accountants Journal June, 2022

Ultra Tech cement ltd. (Capacity of ~120 Capital Markets
MTPA)
equity and similar amount is expected from a
· Mr Gautam Adani, Chairman of the Adani Middle East investor group to the total of $3 Bn.
Group commented that India continues to be the Global banks are expected to lead a funding of
world’s second largest cement market and yet further $4.5 Bn as acquisition financing.
has less than half of the global average per capita
cement consumption. In statistical comparison, · Adani group has subsequently made an open
China’s cement consumption is over 7x that of offer to acquire 26% of stake in Ambuja cement
India’s. at price of Rs. 385 per share and ACC Ltd. at
price of Rs. 2300 per share.
· He added that Holcim’s global leadership in
cement production and sustainability best PE: Country Delight raises $108 Mn from
practices brings to us some of the cutting-edge Venturi Partners, Temasek:
technologies that will allow us to accelerate the
path to greener cement production. In addition, Transaction:
Ambuja Cements and ACC are two of the
strongest brands recognized across India. · Country Delight, a D2C food essentials brand,
has raised USD 108 million in Series D funding,
· Rapid urbanization, growing middle class and at a valuation of $615 Mn, in a round led by
affordable housing together with the post- Venturi Partners and Temasek with participation
pandemic recovery are expected to drive the from SWC Global and Trifecta Capital.
growth of the cement sector.
· Existing investors, IIFL Asset Management,
· Both Ambuja and ACC will benefit from Elevation Capital, Orios Venture Partners and
synergies with the integratedAdani infrastructure Matrix Partners also participated in this round.
platform, and presence of Adani group in ports This transaction takes the company’s total
and logistics business, energy business, and real funding to USD 147 million.
estate business.
About Country Delight:
· Press release said that the acquisition will also
benefit from Adani’s focus on ESG, Circular · Founded in 2013, Country Delight has grown
Economy & Capital Management Philosophy to become India’s leading D2C fresh food
and will continue to be deeply aligned to UN essentials brand offering dairy, fruits and
Sustainability Development Goals. vegetables to the doorstep of consumers.

· Holcim, after its merger with Lafarge in 2015, · The company’s business model ensures fresh
has divested in large markets outside its core farm-to-home deliveries within 24-36 hours
regions of Europe and North America. Also from sourcing, facilitated by a fully integrated
Holcim wants to reduce its CO2 profile as just-in-time supply chain model.
making cement is an energy intensive process
and produces high levels of Carbon, which · Company sources its food from a network of
deters investors and reflects on valuation. This farmers in 200 Km radius and delivers on a
deal will reduce Holcim’s CO2 profile. Holcim subscription model to customers in affordable
expects to use sale proceeds of this deal to focus premium category.
on light weight building materials business with
acquisitions in segments like building products Rationale:
and solutions.
· In the last 3 years, Country Delight claims to
· ET reported that a SPV will be floated where have grown 10x in scale and have served over
the Adani family will infuse $1.25 to $1.5 Bn as 1.5 million customers.

· Founders Chakradhar Gade and Nitin Kaushal
said that Country Delight is on a mission to
disrupt the decades old Indian food essentials
space, which on one hand is highly unorganized

Ahmedabad Chartered Accountants Journal June, 2022 191

Capital Markets which is still majority of revenue, it has now
number of other products in its basket like
with unreliable quality and on the other hand bakery, dairy products, fruits& vegetables and
highly organized where essence and naturalness plans to get into categories like pulses, grains,
of food is lost. jams and pickles.

· He added that Country Delight has taken a tech- · India’s fresh food and staples market is expected
driven and consumer-centric approach to solve to cross USD 50 billion by 2025. Currently over
this problem by delivering natural, fresh and 60% of the fresh foods market is unorganized
minimally processed food essentials, sourced with limited cold storage capabilities, a
directly from farmers present across the country fragmented logistics chain and inadequate
and delivered to the doorstep of consumers every visibility of product quality across the supply
single day. chain.

· Venturi Partners said, “Country Delight is · This market has seen lot of action lately with
solving a very real problem at scale. We have competition amongst funded players like
been very impressed by their products first Bigbasket, Blinkit (formerly Grofers), Swiggy
approach, vertically integrated business model instamart, Zepto, JioMart etc.
and ability to expand across categories.”
Acknowledgements: RBI Bulletin
· In an earlier interview, founders have said that
Country Delight is largely a word of mouth brand ( w w w. b u l l e t i n . r b i . o r g . i n ) , SEBI
due to quality products and had minimal
advertising or marketing. They banked on a (www.sebi.gov.in), NSE (www.nseindia.com),
differentiated products with independent supply
chain to compete with dairy giants Amul and BSE (www.bseindia.com)
Mother Dairy. While company started with milk,
❉❉❉

Continued from page 177 FEMA Updates

AD bank shall ensure that: remittances in IDPMS in terms of extant
guidelines.
a. all required documentation, custom duty related
procedures and filing Bill of Entry as evidence ii. All these transactions need to be reported in
of import, etc. is complete for the import of FETERS in terms of extant guidelines.
Gold by QJ within the specified applicable
period. iii. AD bank shall report the import of gold through
QJ in XBRL as prescribed in para C.11.1 of
b. single/multiple ORMs created and matched Master Direction – Import of Goods and
with corresponding BoEs (Bill of Entry) and Services.
closed appropriately in IDPMS.
The above-mentioned arrangement is for the sole
c. the importer - that is QJs comply with the related purpose of facilitating physical import of gold
extant instructions relating to imports under through IIBX or any similar exchange authorised
FEMA, 1999, FTDR Act 1992, Foreign Trade by IFSCA, by Qualified Jewellers in India.
Policy and regulations of IFSCA.
Source:RBI/2022-2023/57A.P. (DIR Series)
AD banks may frame their own internal guidelines Circular No.04, dated May 25, 2022
to deal with such cases, with the approval of their
Board of Directors. For full text refer:https://rbi.org.in/Scripts/
BS_CircularIndexDisplay.aspx?Id=12324
Reporting requirement by AD banks:
❉❉❉
i. AD bank shall create Outward Remittance
Message (ORM) for all such outward

192 Ahmedabad Chartered Accountants Journal June, 2022

From CA. Pamil H. Shah
Published [email protected]
Accounts
by the weighted average number of equity shares
Earnings per share - Annual Report 2021-22 outstanding during the year.

DCB Bank Ltd. Diluted earnings per share is computed using the
net profit or loss for the year attributable to equity
Basic earnings per share is calculated by dividing shareholders and the weighted average number of
the net profit or loss for the year attributable to equity common and dilutive common equivalent shares
shareholders (after deducting attributable taxes) by outstanding during the year but including share
the weighted average number of equity shares options, compulsory convertible preference shares
outstanding during the year. For the purpose of except where the result would be anti-dilutive
calculating diluted earnings per share, the net profit
or loss for the year attributable to equity Canara Bank Limited
shareholders and the weighted average number of
shares outstanding during the year are adjusted for The Bank (Parent) reports basic and diluted
the effect of dilutive potential equity shares. Earnings per Share in accordance with Accounting
Standard (AS) 20 (Earnings Per Share). Basic
Hindustan Unilever Limited Earnings Per Share is computed by dividing the
net profit after tax by the weighted average number
Basic earnings per share is computed by dividing of equity shares outstanding during theYear.
the net profit for the period attributable to the
equity shareholders of the Holding Company by Voltas Limited
the weighted average number of equity shares
outstanding during the period. The weighted Basic EPS is calculated by dividing the profit or
average number of equity shares outstanding loss attributable to equity shareholders of the Group
during the period and for all periods presented is by the weighted average number of equity shares
adjusted for events, such as bonus shares, other outstanding during the period. Diluted EPS is
than the conversion of potential equity shares that determined by adjusting the profit or loss
have changed the number of equity shares attributable to equity shareholders and the weighted
outstanding, without a corresponding change in average number of equity shares outstanding
resources. for the effects of all dilutive potential equity
shares.
For the purpose of calculating diluted earnings per
share, the net profit for the period attributable to Infosys Limited
equity shareholders and the weighted average
number of shares outstanding during the period is Basic earnings per equity share is computed by
adjusted for the effects of all dilutive potential equity dividing the net profit attributable to the equity
shares. holders of the Company by the weighted average
number of equity shares outstanding during the
Newgen Softwear Technologies Limited period. Diluted earnings per equity share is
computed by dividing the net profit attributable to
Basic earnings per share is calculated by dividing the equity holders of the Company by the weighted
the profit attributable to the owners of the Company

Ahmedabad Chartered Accountants Journal June, 2022 193

From Published Accounts Tata Elxsi Limited

average number of equity shares considered for Basic earnings per share is computed by dividing
deriving basic earnings per equity share and also the profit / (loss) after tax (including the post tax
the weighted average number of equity shares that effect of extraordinary items, if any) by the weighted
could have been issued upon conversion of all average number of equity shares outstanding during
dilutive potential equity shares. The dilutive the period. Diluted earnings per share is computed
potential equity shares are adjusted for the by dividing the profit / (loss) after tax (including
proceeds receivable had the equity shares been the post tax effect of extraordinary items, if any) as
actually issued at fair value (i.e. the average market adjusted for dividend, interest and other charges to
value of the outstanding equity shares). Dilutive expense or income relating to the dilutive potential
potential equity shares are deemed converted as equity shares, by the weighted average number of
at the beginning of the period, unless issued at a equity shares considered for deriving basic earnings
later date. Dilutive potential equity shares are per share and the weighted average number of
determined independently for each period equity shares which could have been issued on the
presented. conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive
The number of equity shares and potentially dilutive only if their conversion to equity shares would
equity shares are adjusted retrospectively for all decrease the net profit per share from continuing
periods presented for any share splits and bonus ordinary operations. Potential dilutive equity shares
shares issues including for changes. are deemed to be converted as at the beginning of
the period, unless they have been issued at a later
Basic earnings per share is calculated by dividing: date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares
• the profit attributable to owners of the Group been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential
• by the weighted average number of equity shares equity shares are determined independently for each
outstanding during the financial year period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
Diluted earnings per share share splits / reverse share splits and bonus shares,
as appropriate.
Diluted earnings per share adjusts the figures used
in the determination of basic earnings per share to ❉❉❉
take into account:

• the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

• the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares

194 Ahmedabad Chartered Accountants Journal June, 2022

From the
Government

CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]

Income Tax Goods and Service Tax

1) The CBDT vide notification dated 14/06/ 1) CBIC vide Instruction No. 03/2022-GST
2022 published in the Gazette of India, The instructs GST officials to upload Speaking
Cost Inflation Index for Financial Year Order along with GST Refund sanction order
2022-23 as “331” in FORM GST RFD-06 and also specified
that Post-Audit may be conducted within 3
2) CBDT Issues Guidelines for compulsory months from issue of FORM GST RFD-06
selection of Income Tax returns for order for GST Refund claims exceeding Rs.
Complete Scrutiny during the Financial 1 Lakh.
Year 2022-23 and procedure for
compulsory selection in such cases vide (Instruction No 3/2022 dated 14/06/2022)
Instruction No. F.No.225/ 81/2022/ITA-II
Dated: 11th May, 2022. 2) Addition of 6% tax rate in GSTR-1 online
(GST News and Update, dated 01/06/2022)
CBDT notifies Scrutiny criteria/Guideline for
following parameters for compulsory selection - It may be noted that 6% tax rate has been
of returns for Complete Scrutiny- added in the item details section of all the
tables of form GSTR-1, except HSN table
1. Cases pertaining to survey u/s 133A of the 12. In case your outward supplies attracts
Income-tax Act, 1961 (Act) 6% tax rate, you are required to upload the
details against 6% tax rate in the item
2. Cases pertaining to Search and Seizure details section.

3. Cases in which notices u/s 142(1) of the - In respect to HSN table 12 of form GSTR-
Act, calling for return, have been issued & 1, 6% tax rate shall be added shortly.
no returns have been furnished Meanwhile, you may report the HSN
details of supplies attracting 6% tax rate
4. Cases in which notices u/s 148 of the Act under tax rate 5% by updating the values/
have been issued tax amounts as per the actual supplies made
by you.
5. Cases related to registration/ approval
under various sections of the Act, such as
12A, 35(1)(ii)/ (iia)/ (iii), 10(23C), etc.

6. Cases involving addition in an earlier
assessment year(s) on a recurring issue of
law or fact and/or law and fact

7. Cases related to specific information ❉❉❉
regarding tax-evasion.

Ahmedabad Chartered Accountants Journal June, 2022 195

IT Corner

CA. Rushabh Shah
[email protected]

BUSINESS ANALYTICS – A brief The top business benefits of analytics are:
Understanding
· Improved efficiency and productivity
Organizations, people, and things are
generating massive amounts of data every day. · Faster, more effective decision-making
In a 24-hour period, we collectively send 294
billion e-mails and 500 million tweets. We plug · Better financial performance
3.5 billion searches into Google. Our connected
cars generate a whopping four petabytes of data. · Identification and creation of new revenue
Even our watches, fridges, and TVs are streams
constantly creating and sharing data.
· Improved customer acquisition and retention
A basic definition of Analytics
Enterprise analytics is one of the fastest growing
Analytics is a field of computer science that uses markets in the enterprise software space. Recently,
math, statistics, and machine learning to find this growth has sped up even more due to the
meaningful patterns in data. Analytics – or data COVID-19 pandemic, which has forced many
analytics – involves sifting through massive data businesses to find new ways to make money, cut
sets to discover, interpret, and share new insights costs, and navigate the turbulent “next normal.”
and knowledge. According to Gartner, analytics, business
intelligence (BI), and data science are the most
What is Business Analytics? common use cases being accelerated due to the
pandemic – blowing Internet of Things (IoT)
Very simply put, business analytics is analytics and cloud applications out of the water. The
applied to business data. It focuses on the business problem-solving and predictive capabilities of
implications of data – and the decisions and actions analytics are helping organizations handle urgent,
that should be taken as a result. pandemic-related challenges such as accurately
forecasting demand, protecting at-risk employees,
The importance of Business Analytics and identifying potential supply chain disruptions.

Today, the use of business analytics software is
often the deciding factor distinguishing industry
winners from losers. Leading companies use
analytics to monitor and optimize every aspect of
their operations – from marketing to supply chain
– in real time. They rely on analytics to help them
make fast, data-driven decisions, grow revenue,
establish new business models, provide five-star
customer experiences, empower employees, gain
a competitive edge, and so much more. Companies
without analytics – or without good analytics – are
left to make decisions and do business based on
gut instinct and experience alone.

196 Ahmedabad Chartered Accountants Journal June, 2022

1. Descriptive analytics IT Corner

Descriptive analytics answers the question Examples of Analytics
“What happened?”. This simple form of
analytics uses basic math, such as averages and Financial Analytics
percent changes, to show what has already
happened in a business. Descriptive analytics, Traditionally, financial analytics was used for
also called traditional business intelligence (BI), generating a standard set of reports. But now that
is the first step in the analytics process, creating finance has taken on a more strategic role with the
a jumping-off point for further investigation. business, financial analytics has evolved –
combining financial and operational data with
2. Diagnostic analytics external data sources to address a wide range of
business questions. These include everything from
Diagnostic analytics answers the question “Are we investing in the right opportunities?” to
“Why did something happen?”. It takes “How will our future margins be affected by the
descriptive analytics a step further, using decisions we’re making today?”
techniques such as data discovery, drill-down,
and correlations to dive deeper into data and Marketing Analytics
identify the root causes of events and
behaviours. Marketing analytics connects data from multiple
channels – social media, Web, e-mail, mobile, and
3. Predictive analytics more – to give marketers comprehensive insight into
how their programs are performing. Users can mine
Predictive analytics answers the question millions of rows of data to improve the effectiveness
“What is likely to happen in the future?”. This of campaigns, hyper-personalize marketing
branch of advanced analytics uses findings from messages, analyse sentiment on social media, target
descriptive and diagnostic analytics – along potential customers at exactly the right time, and
with sophisticated predictive modelling, much more.
machine learning, and deep learning techniques
– to predict what will happen next. Supply Chain Analytics

4. Prescriptive analytics The explosion of e-commerce, increased market
volatility, globalization, and other forces have made
Prescriptive analytics answers the question supply chains incredibly complex. Supply chain
“What action should we take?”. This state-of- analytics helps organizations avoid disruption, keep
the-art type of analytics builds on findings from goods flowing, and improve supply chain
descriptive, diagnostic, and predictive analytics resilience and agility. They use real-time data from
and uses highly advanced tools and techniques a wide variety of sources – including Internet of
to assess the consequences of possible decisions Things sensors – to optimize everything from
and determine the best course of action in a sourcing, production, and inventory to transportation
scenario. and logistics.

❉❉❉

Ahmedabad Chartered Accountants Journal June, 2022 197

Association
News

CA. Jay B. Parekh CA. Mayur H. Modha
Hon. Secretary Hon. Secretary

1. Glimpses of previous events:

Time Program Speaker Venue
Zoom Platform
2nd June 2022, Webinar on Income Tax Litigation CA Ameet Patel
Saturday covering Faceless Assessment/ (Mumbai),
Reassessment and Appeals.
ITAT President,
G S Pannu,

CA Rajan Vora
(Mumbai)

4TH June 2022, Study Circle Meeting on Adv. Tej Shah CAA
Saturday Effect of the Supreme Court Navrangpura
Judgment and consequential
issue of notices u/s 148A of the Office

Income Tax Act

11th June 2022, Study Circle Meeting on CA Adv. Vijay Patel Zoom Platform
Saturday Recent Judgments under

Direct Tax Laws

18th June 2022, 1st Brain Trust Meeting on CA Kaushik C. Patel Atma Hall
Saturday Amended Schedule III & &

CARO 2020 CA Krishnakant B.
Solanki

23rd June 2022, 51st Residential Adv. CA Tushar Hemani, Bamboo Saa
to 25th June, 2022 Refresher Course
Thursday CA Rutvij Shah, Resort & Spa,

CA Ameet Patel, Udaipur

CA Pramod Jain,

CA Ajit Shah,

CA Atul Shah,

CA Nitesh Thakkar

❉❉❉

198 Ahmedabad Chartered Accountants Journal June, 2022

Ahmedabad Chartered Accountants Journal June, 2022 199

ACAJ Crossword Contest - 13

Across Down
1. Article 21 of the Constitution is about – 4. A private trust is one whose beneficiaries are

protection of life and personal __________ individuals or ________________.
2. AAR (Maharashtra) has allowed the input tax 5. The root cause of rising NPAs, scams and

credit paid on hiring of bus for transportation frauds in banks is weak _________ control.
of ____________. 6. In D N Pushpa Devi Charitable Trust it is held
3. The cost inflation index notified for the financial
year 2022-23 is – three hundred thirty _______. that _______ fee charged by residential college
is not a business income.

5
4

1 6
2 3

Notes: Prize Courtesy

1. The Crossword puzzle is based on this issue of

ACA Journal.

2. Two lucky winners on the basis of a draw will

be awarded prizes. Winners of ACAJ Crossword Contest – 12
3. The contest is open only for the members of 1. CA. Khushali Kotak
2. CA. Neha Jain
Chartered Accountants Association and no
member is allowed to submit more than one

entry. ACAJ Crossword Contest 12 - Solution

4. Members may submit their reply either Across: Down:

physically at the office of the Association or 1. Udaipur 4. Opinion
by email at [email protected] on or 2. Showcause 5. Perquisite
before 20-07-2022. 3. Alimony 6. Updated
5. The decision of Journal Committee shall be final

and binding. ❉❉❉

200 Ahmedabad Chartered Accountants Journal June, 2022